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)
1285 Avenue of the Americas New York, New York 10019-6028
(Address of principal executive offices) (Zip code)
Mark F. Kemper, Esq.
UBS Global Asset Management
1285 Avenue of the Americas
New York, NY 10019-6028
(Name and address of agent for service)
Copy to:
Jack W. Murphy, Esq.
Dechert LLP
1900 K Street, N.W.
Washington, DC 20006-2401
Registrant’s telephone number, including area code: 212-821 3000
Date of fiscal year end: June 30
Date of reporting period: December 31, 2014
Item 1. Reports to Stockholders.
Money Market Funds |
UBS RMA
Money Market Portfolio
U.S. Government Portfolio
Tax-Free Fund
California Municipal Money Fund
New York Municipal Money Fund
Semiannual Report
December 31, 2014
UBS RMA
February 17, 2015
Dear shareholder,
We present you with the semiannual report for UBS RMA Money Market Portfolio, UBS RMA U.S. Government Portfolio, UBS RMA Tax-Free Fund, UBS RMA California Municipal Money Fund and UBS RMA New York Municipal Money Fund (the “Funds”) for the six months ended December 31, 2014.
Performance
Throughout the reporting period, the US Federal Reserve Board (the “Fed”) continued to hold the federal funds rate at a historically low range between 0% and 0.25%.The federal funds rate or the “fed funds rate,” is the rate US banks charge one another for funds they borrow on an overnight basis. (For more details on the Fed’s actions, see below.) This continued to depress yields on a wide range of short-term investments. As a result, the Funds’ yields remained low during the reporting period.
As of December 31, 2014, after fee waivers/expense reimbursements, the Funds’ seven-day current yields were:
• | UBS RMA Money Market Portfolio: 0.01%, unchanged from June 30, 2014; |
• | UBS RMA U.S. Government Portfolio: 0.01%, unchanged from June 30, 2014; |
• | UBS RMA Tax-Free Fund: 0.01%, unchanged from June 30, 2014; |
UBS RMA Money Market Portfolio, UBS RMA U.S. Government Portfolio
Investment goal
(both Portfolios):
Maximum current income consistent with preservation of capital and liquidity
Portfolio Manager
(both Portfolios):
Robert Sabatino
UBS Global Asset Management (Americas) Inc.
Commencement
(both Portfolios):
October 4, 1982
UBS RMA Tax-Free Fund Inc., UBS RMA California Municipal Money Fund, UBS RMA New York Municipal Money Fund
Investment goal (all three Funds):
Maximum current income exempt from federal and/or a specific state’s personal income taxes consistent with preservation of capital and liquidity
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UBS RMA
• | UBS RMA California Municipal Money Fund: 0.01%, unchanged from June 30, 2014; and |
• | UBS RMA New York Municipal Money Fund: 0.01%, unchanged from June 30, 2014. |
(For more on each Fund’s performance, refer to “Performance and portfolio characteristics at a glance” beginning on page 11.)
Portfolio Managers
(all three Funds)
Elbridge T. Gerry III
Erin O. Houston
UBS Global Asset Management (Americas) Inc.
Commencement:
Tax Free—October 4, 1982
California Municipal—November 7, 1988
New York Municipal—November 10, 1988
An interview with the Portfolio Managers
Q. | How would you describe the economic environment during the reporting period? |
A. | Growth accelerated to 5.0% during the third quarter of 2014, the highest rate since the third quarter of 2003. The Commerce Department’s initial estimate for fourth quarter gross domestic product (“GDP”) growth was 2.6%.1 Looking back, the Commerce Department reported that first quarter 2014 GDP contracted at a 2.1% seasonally-adjusted annualized rate. This was the first negative reading since the first quarter of 2011, and the downturn was partially attributed to severe winter weather in parts of the country. However, this proved to be a temporary setback for the economy, as GDP growth was 4.6% during the second quarter. |
Q. | How did the Federal Reserve Board (the “Fed”) react to the economic environment? |
A. | As stated above, the Fed largely maintained its accommodative monetary policy during the reporting period. The central bank continued to hold the fed funds rate between 0% and 0.25%. |
1 | Based on the Commerce Department’s initial estimate announced on January 30, 2015, after the reporting period had ended. |
2
UBS RMA
Additionally, it continued to pare back its monthly asset purchases. At its meetings in July and September 2014, the Fed said it would further taper its purchases of agency mortgage-backed securities, in each case paring its total purchases by $10 billion per month. It had been reducing its purchase since January 2014. Then, at the Fed’s meeting in October, it said it had concluded its asset purchase program. Finally, at its meeting that concluded on December 17, 2014, the Fed said “Based on its current assessment, the Committee judges that it can be patient in beginning to normalize the stance of monetary policy.” |
Q. | How was UBS RMA Money Market Portfolio managed during the period? |
A. | We tactically adjusted the Fund’s weighted average maturity (WAM) throughout the six-month review period. When the reporting period began, the Fund had a WAM of 39 days. The Fund’s WAM ended the period at 46 days. |
At the issuer level, we continued to maintain a high level of diversification, investing in smaller positions with the goal of reducing risk and keeping the Fund highly liquid. To that end, we typically purchased up to 3% in single nongovernment issuers throughout the reporting period. (The Fund is generally able to hold up to 5% in any one issuer, subject to certain exceptions.)
In terms of securities, we increased the Fund’s exposure to repurchase agreements and US government and agency obligations, and modestly added to its allocation to certificates of deposit. Repurchase agreements are transactions in which the seller of a security agrees to buy it back at a predetermined time and price or upon demand. Conversely, we eliminated the Fund’s time deposit exposure and pared its allocations to commercial paper.
Q. | How was UBS RMA U.S. Government Portfolio managed during the period? |
A. | During the period, the Fund’s WAM moved from 51 to 36 days, while we maintained the goal of keeping the Fund highly liquid. The |
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UBS RMA
Fund’s exposure to repurchase agreements (backed by US government and agency obligations) increased significantly over the six-months ended December 31, 2014. In contrast, the Fund’s allocation to direct US government and agency obligations sharply declined over the period. |
Q. | How were UBS RMA Tax-Free Fund, UBS RMA California Municipal Money Fund and UBS RMA New York Municipal Money Fund managed during the period? |
A. | Fundamentals in the municipal market generally improved during the reporting period. This was driven, in part, by accelerating economic growth in the US and rising tax revenues that helped certain municipalities to shore up their balance sheets. That said, given continued low interest rates, uncertainties about future Fed monetary policy and money fund reform, we continued to emphasize liquidity and credit quality in the Funds’ portfolios. Investment decisions remained focused on the underlying credit quality of individual securities first and, secondarily, on yield. |
The weighted average maturity (WAM) for UBS RMA Tax-Free Fund declined slightly from 27 to 26 days during the reporting period, whereas the WAM for UBS RMA California Municipal Money Fund moved from 36 to 23 days. In contrast, UBS RMA New York Municipal Money Fund’s WAM rose from 13 to 22 days. Given the improved economic backdrop in the US, new issuance of tax-free money market securities declined during the reporting period—a trend we see likely continuing in the future. Therefore, it was challenging at times to identify high quality securities that allowed us to diversify the Funds’ portfolios and maintain ample liquidity. In addition, California’s new issuance typically occurs in May and June. As such, some of our previously purchased securities for UBS RMA California Municipal Money approached maturity during the reporting period and caused its WAM to decline. In contrast, the state of New York issues securities throughout the year, and we found a number of opportunities to lengthen UBS RMA New York Municipal Money Fund’s WAM during the reporting period.
4
UBS RMA
In order to maintain liquidity, the Funds maintained sizable allocations to variable rate demand notes (VRDNs) with yields that reset on a daily or weekly basis. Elsewhere, we looked to maintain the Funds’ allocations to tax-exempt commercial paper in order to generate additional yield in the low interest rate environment. In particular, we emphasized select investments in commercial paper with 60- to 90-day maturities, given their yield advantage as compared to VRDNs.
Finally, we continued to emphasize essential service revenue bonds for the Funds. These included securities issued by high-quality water and sewer entities. We also continued to have significant allocations to both state and local general obligation securities that met our credit criteria.
Q. | What factors do you believe will affect the Funds over the coming months? |
A. | Even through the Fed concluded its third round of quantitative easing in 2014, we do not expect the federal funds rate to be raised from its historically low level until perhaps mid-2015. However, given sharply falling oil prices and moderating inflation, the Fed likely has the flexibility to delay its first rate hike, even if unemployment in the US continues to move lower. Turning to the US economy, we believe it will continue to expand in 2015, albeit at a relatively modest pace. We anticipate continuing to manage the Funds focusing on risk and liquidity. |
In the last report to shareholders, we discussed the US Securities and Exchange Commission’s (“SEC”) adoption of new regulations for money market funds (while also proposing more changes to be adopted in the future). We noted that there is a transition period ranging until October 2016 (for the most significant changes). Our analysis of the impact of these changes continues, but we do see these regulatory changes as significantly impacting all money market funds going forward, but with government money market funds (such as UBS RMA U.S. Government Portfolio) impacted to a lesser extent. We will communicate further to shareholders as the Funds transition into compliance with the new laws.
5
UBS RMA
We thank you for your continued support and welcome any comments or questions you may have. For additional information on the UBS family of Funds, please contact your Financial Advisor, or visit us at www.ubs.com/globalam-us.*
Mark E. Carver President UBS RMA Money Fund Inc. (UBS RMA Money Market Portfolio and UBS RMA U.S. Government Portfolio) UBS RMA Tax-Free Fund Inc. UBS Managed Municipal Trust (UBS RMA California Municipal Money Fund and UBS RMA New York Municipal Money Fund) Managing Director UBS 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 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
Erin Houston Portfolio Manager UBS RMA Tax-Free Fund Inc. UBS RMA California Municipal Money Fund UBS RMA New York 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 Managing 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, 2014. The views and opinions in the letter were current as of February 17, 2015. They are not guarantees of future performance or investment results and should not be taken as investment advice. Investment decisions reflect a variety of factors, and we reserve the right to change our views about individual securities, sectors and markets at any time. As a result, the views expressed should not be relied upon as a forecast of the Funds’ future investment intent. We encourage you to consult your financial advisor regarding your personal investment program.
7
UBS RMA
Understanding your Fund’s expenses (unaudited)
As a shareholder of the Funds*, you incur ongoing costs, including management fees, service fees (12b-1 or non-12b-1 fees) and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in each Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The examples below are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2014 to December 31, 2014.
Actual expenses
The first line in the following table for each Fund provides information about its actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over a period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line for each respective Fund under the heading “Expenses paid during period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The second line in the following table for each Fund provides information about hypothetical account values and hypothetical expenses based on that Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not that Fund’s actual return. The hypothetical account values and expenses may not be used to estimate your actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in a Fund and other funds. To do so, compare these 5% hypothetical examples with the 5% hypothetical examples that appear in the shareholder reports of other funds.
* | Collectively refers to UBS RMA Money Market Portfolio, UBS RMA U.S. Government Portfolio, UBS RMA Tax-Free Fund, UBS RMA California Municipal Money Fund and UBS RMA New York Municipal Money Fund. |
8
UBS RMA
Understanding your Fund’s expenses (unaudited) (continued)
Please note that the expenses shown in the table are meant to highlight your ongoing costs. Therefore, the second line of the table for each Fund is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds, if those funds impose transactional costs—for example, exchange fees. In addition, if those transactional costs were included, your costs for those other funds would have been higher.
The examples do not reflect Resource Management Account® (RMA®) Program, Business Services Account BSA® Program or other similar program fees as these are external to the Funds and relate to those programs.
UBS RMA Money Market Portfolio
Beginning account value July 1, 2014 | Ending account value1 December 31, 2014 | Expenses paid during period2 07/01/14 to 12/31/14 | Expense ratio during the period | |||||||||||||
Actual | $ | 1,000.00 | $ | 1,000.10 | $ | 0.76 | 0.15 | % | ||||||||
Hypothetical (5% annual return before expenses) | 1,000.00 | 1,024.45 | 0.77 | 0.15 |
UBS RMA U.S. Government Portfolio
Beginning account value July 1, 2014 | Ending account value1 December 31, 2014 | Expenses paid during period2 07/01/14 to 12/31/14 | Expense ratio during the period | |||||||||||||
Actual | $ | 1,000.00 | $ | 1,000.10 | $ | 0.35 | 0.07 | % | ||||||||
Hypothetical (5% annual return before expenses) | 1,000.00 | 1,024.85 | 0.36 | 0.07 |
1 | “Actual—Ending account value” may or may not be reflective of a shareholder’s actual investment experience during periods of very low interest rates. While the Fund declares dividends daily and pays them monthly, the amounts are rounded to the nearest $0.01 on a daily basis with respect to each investor’s account. As a result, investors whose fund account balances earn daily dividends that total less than one half a cent on any given day will not accrue any dividends on that day. |
2 | Expenses are equal to the Fund’s annualized net expense ratio, multiplied by the average account value over the period, multiplied by 184 divided by 365 (to reflect the one-half year period). |
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UBS RMA
Understanding your Fund’s expenses (unaudited) (concluded)
UBS RMA Tax-Free Fund
Beginning account value July 1, 2014 | Ending account value1 December 31, 2014 | Expenses paid during period2 07/01/14 to 12/31/14 | Expense ratio during the period | |||||||||||||
Actual | $ | 1,000.00 | $ | 1,000.10 | $ | 0.20 | 0.04 | % | ||||||||
Hypothetical (5% annual return before expenses) | 1,000.00 | 1,025.00 | 0.20 | 0.04 |
UBS RMA California Municipal Money Fund
Beginning account value July 1, 2014 | Ending account value1 December 31, 2014 | Expenses paid during period2 07/01/14 to 12/31/14 | Expense ratio during the period | |||||||||||||
Actual | $ | 1,000.00 | $ | 1,000.10 | $ | 0.20 | 0.04 | % | ||||||||
Hypothetical (5% annual return before expenses) | 1,000.00 | 1,025.00 | 0.20 | 0.04 |
UBS RMA New York Municipal Money Fund
Beginning account value July 1, 2014 | Ending account value1 December 31, 2014 | Expenses paid during period2 07/01/14 to 12/31/14 | Expense ratio during the period | |||||||||||||
Actual | $ | 1,000.00 | $ | 1,000.10 | $ | 0.20 | 0.04 | % | ||||||||
Hypothetical (5% annual return before expenses) | 1,000.00 | 1,025.00 | 0.20 | 0.04 |
1 | “Actual—Ending account value” may or may not be reflective of a shareholder’s actual investment experience during periods of very low interest rates. While the Fund declares dividends daily and pays them monthly, the amounts are rounded to the nearest $0.01 on a daily basis with respect to each investor’s account. As a result, investors whose fund account balances earn daily dividends that total less than one half a cent on any given day will not accrue any dividends on that day. |
2 | Expenses are equal to the Fund’s annualized net expense ratio, multiplied by the average account value over the period, multiplied by 184 divided by 365 (to reflect the one-half year period). |
10
UBS RMA
Performance and portfolio characteristics at a glance (unaudited)
UBS RMA Money Market Portfolio
Yields and characteristics | 12/31/14 | 06/30/14 | 12/31/13 | |||||||||
Seven-day current yield after fee waivers and/or expense reimbursements1 | 0.01 | % | 0.01 | % | 0.01 | % | ||||||
Seven-day effective yield after fee waivers and/or expense reimbursements1 | 0.01 | 0.01 | 0.01 | |||||||||
Seven-day current yield before fee waivers and/or expense reimbursements1 | (0.40 | ) | (0.36 | ) | (0.41 | ) | ||||||
Seven-day effective yield before fee waivers and/or expense reimbursements1 | (0.40 | ) | (0.36 | ) | (0.41 | ) | ||||||
Weighted average maturity2 | 46 days | 39 days | 43 days | |||||||||
Net assets (bn) | $5.1 | $5.2 | $6.7 | |||||||||
Portfolio composition3 | 12/31/14 | 06/30/14 | 12/31/13 | |||||||||
Commercial paper | 40.9 | % | 42.6 | % | 43.6 | % | ||||||
Repurchase agreements | 21.8 | 17.5 | 19.0 | |||||||||
Certificates of deposit | 17.3 | 16.6 | 15.3 | |||||||||
US government and agency obligations | 16.1 | 14.6 | 15.5 | |||||||||
Time deposits | — | 4.8 | 3.0 | |||||||||
Short-term corporate obligations | 3.0 | 3.0 | 2.9 | |||||||||
Non-US government agency | 0.9 | 0.9 | 0.7 | |||||||||
Other assets less liabilities | (0.0 | )4 | 0.0 | 4 | 0.0 | 4 | ||||||
Total | 100.0 | % | 100.0 | % | 100.0 | % |
1 | Yields will fluctuate and reflect fee waivers and/or expense reimbursements, if any, unless otherwise noted. Performance data quoted represents past performance. Past performance does not guarantee future results. Current performance may be higher or lower than the performance data quoted. |
2 | The Fund’s portfolio is actively managed and its weighted average maturity will differ over time. |
3 | Weightings represent percentages of the Fund’s net assets as of the dates indicated. The Fund’s portfolio is actively managed and its composition will vary over time. |
4 | Represents less than 0.05% of net assets as of the date indicated. |
An investment in an RMA fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although each RMA fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in an RMA fund.
Not FDIC Insured. May lose value. No bank guarantee.
11
UBS RMA
Performance and portfolio characteristics at a glance (unaudited) (continued)
UBS RMA U.S. Government Portfolio
Yields and characteristics | 12/31/14 | 06/30/14 | 12/31/13 | |||||||||
Seven-day current yield after fee waivers and/or expense reimbursements1 | 0.01 | % | 0.01 | % | 0.01 | % | ||||||
Seven-day effective yield after fee waivers and/or expense reimbursements1 | 0.01 | 0.01 | 0.01 | |||||||||
Seven-day current yield before fee waivers and/or expense reimbursements1 | (0.47 | ) | (0.47 | ) | (0.49 | ) | ||||||
Seven-day effective yield before fee waivers and/or expense reimbursements1 | (0.47 | ) | (0.47 | ) | (0.49 | ) | ||||||
Weighted average maturity2 | 36 days | 51 days | 42 days | |||||||||
Net assets (bn) | $1.9 | $1.7 | $2.1 | |||||||||
Portfolio composition3 | 12/31/14 | 06/30/14 | 12/31/13 | |||||||||
US government and agency obligations | 49.1 | % | 75.5 | % | 61.8 | % | ||||||
Repurchase agreements | 50.9 | 24.5 | 38.2 | |||||||||
Other assets less liabilities | 0.0 | 4 | 0.0 | 4 | 0.0 | 4 | ||||||
Total | 100.0 | % | 100.0 | % | 100.0 | % |
1 | Yields will fluctuate and reflect fee waivers and/or expense reimbursements, if any, unless otherwise noted. Performance data quoted represents past performance. Past performance does not guarantee future results. Current performance may be higher or lower than the performance data quoted. |
2 | The Fund’s portfolio is actively managed and its weighted average maturity will differ over time. |
3 | Weightings represent percentages of the Fund’s net assets as of the dates indicated. The Fund’s portfolio is actively managed and its composition will vary over time. |
4 | Represents less than 0.05% of net assets as of the date indicated. |
An investment in an RMA fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although each RMA fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in an RMA fund.
Not FDIC Insured. May lose value. No bank guarantee.
12
UBS RMA
Performance and portfolio characteristics at a glance (unaudited) (continued)
UBS RMA Tax-Free Fund
Yields and characteristics | 12/31/14 | 06/30/14 | 12/31/13 | |||||||||
Seven-day current yield after fee waivers and/or expense reimbursements1 | 0.01 | % | 0.01 | % | 0.01 | % | ||||||
Seven-day effective yield after fee waivers and/or expense reimbursements1 | 0.01 | 0.01 | 0.01 | |||||||||
Seven-day current yield before fee waivers and/or expense reimbursements1 | (0.54 | ) | (0.52 | ) | (0.52 | ) | ||||||
Seven-day effective yield before fee waivers and/or expense reimbursements1 | (0.54 | ) | (0.52 | ) | (0.52 | ) | ||||||
Weighted average maturity2 | 26 days | 27 days | 24 days | |||||||||
Net assets (bn) | $3.0 | $3.0 | $3.3 | |||||||||
Portfolio composition3 | 12/31/14 | 06/30/14 | 12/31/13 | |||||||||
Municipal bonds and notes | 87.9 | % | 88.3 | % | 88.0 | % | ||||||
Tax-exempt commercial paper | 11.1 | 13.2 | 12.0 | |||||||||
Other assets less liabilities | 1.0 | (1.5 | ) | 0.0 | 4 | |||||||
Total | 100.0 | % | 100.0 | % | 100.0 | % |
1 | Yields will fluctuate and reflect fee waivers and/or expense reimbursements, if any, unless otherwise noted. Performance data quoted represents past performance. Past performance does not guarantee future results. Current performance may be higher or lower than the performance data quoted. |
2 | The Fund’s portfolio is actively managed and its weighted average maturity will differ over time. |
3 | Weightings represent percentages of the Fund’s net assets as of the dates indicated. The Fund’s portfolio is actively managed and its composition will vary over time. |
4 | Represents less than 0.05% of net assets as of the date indicated. |
An investment in an RMA fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although each RMA fund seeks to preserve the value of your investment at $1.00 per share it is possible to lose money by investing in an RMA fund.
Not FDIC Insured. May lose value. No bank guarantee.
13
UBS RMA
Performance and portfolio characteristics at a glance (unaudited) (continued)
UBS RMA California Municipal Money Fund
Yields and characteristics | 12/31/14 | 06/30/14 | 12/31/13 | |||||||||
Seven-day current yield after fee waivers and/or expense reimbursements1 | 0.01 | % | 0.01 | % | 0.01 | % | ||||||
Seven-day effective yield after fee waivers and/or expense reimbursements1 | 0.01 | 0.01 | 0.01 | |||||||||
Seven-day current yield before fee waivers and/or expense reimbursements1 | (0.59 | ) | (0.60 | ) | (0.57 | ) | ||||||
Seven-day effective yield before fee waivers and/or expense reimbursements1 | (0.59 | ) | (0.60 | ) | (0.57 | ) | ||||||
Weighted average maturity2 | 23 days | 36 days | 24 days | |||||||||
Net assets (mm) | $836.8 | $733.7 | $851.7 | |||||||||
Portfolio composition3 | 12/31/14 | 06/30/14 | 12/31/13 | |||||||||
Municipal bonds and notes | 89.3 | % | 96.5 | % | 90.3 | % | ||||||
Tax-exempt commercial paper | 10.1 | 11.0 | 9.6 | |||||||||
Other assets less liabilities | 0.6 | (7.5 | ) | 0.1 | ||||||||
Total | 100.0 | % | 100.0 | % | 100.0 | % |
1 | Yields will fluctuate and reflect fee waivers and/or expense reimbursements, if any, unless otherwise noted. Performance data quoted represents past performance. Past performance does not guarantee future results. Current performance may be higher or lower than the performance data quoted. |
2 | The Fund’s portfolio is actively managed and its weighted average maturity will differ over time. |
3 | Weightings represent percentages of the Fund’s net assets as of the dates indicated. The Fund’s portfolio is actively managed and its composition will vary over time. |
An investment in an RMA fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although each RMA fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in an RMA fund.
Not FDIC Insured. May lose value. No bank guarantee.
14
UBS RMA
Performance and portfolio characteristics at a glance (unaudited) (concluded)
UBS RMA New York Municipal Money Fund
Yields and characteristics | 12/31/14 | 06/30/14 | 12/31/13 | |||||||||
Seven-day current yield after fee waivers and/or expense reimbursements1 | 0.01 | % | 0.01 | % | 0.01 | % | ||||||
Seven-day effective yield after fee waivers and/or expense reimbursements1 | 0.01 | 0.01 | 0.01 | |||||||||
Seven-day current yield before fee waivers and/or expense reimbursements1 | (0.60 | ) | (0.59 | ) | (0.57 | ) | ||||||
Seven-day effective yield before fee waivers and/or expense reimbursements1 | (0.60 | ) | (0.59 | ) | (0.57 | ) | ||||||
Weighted average maturity2 | 22 days | 13 days | 32 days | |||||||||
Net assets (mm) | $738.7 | $652.4 | $694.2 | |||||||||
Portfolio composition3 | 12/31/14 | 06/30/14 | 12/31/13 | |||||||||
Municipal bonds and notes | 92.7 | % | 93.3 | % | 92.7 | % | ||||||
Tax-exempt commercial paper | 7.2 | 6.7 | 7.2 | |||||||||
Other assets less liabilities | 0.1 | 0.0 | 4 | 0.1 | ||||||||
Total | 100.0 | % | 100.0 | % | 100.0 | % |
1 | Yields will fluctuate and reflect fee waivers and/or expense reimbursements, if any, unless otherwise noted. Performance data quoted represents past performance. Past performance does not guarantee future results. Current performance may be higher or lower than the performance data quoted. |
2 | The Fund’s portfolio is actively managed and its weighted average maturity will differ over time. |
3 | Weightings represent percentages of the Fund’s net assets as of the dates indicated. The Fund’s portfolio is actively managed and its composition will vary over time. |
4 | Represents less than 0.05% of net assets as of the date indicated. |
An investment in an RMA fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although each RMA fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in an RMA fund.
Not FDIC Insured. May lose value. No bank guarantee.
15
UBS RMA Money Market Portfolio
Statement of net assets—December 31, 2014 (unaudited)
Security description | Face amount | Value | ||||||
US government and agency obligations—16.08% | ||||||||
Federal Home Loan Bank | ||||||||
0.045%, due 01/02/151 | $ | 30,000,000 | $ | 29,999,963 | ||||
0.040%, due 01/07/151 | 40,000,000 | 39,999,733 | ||||||
0.080%, due 01/16/151 | 75,000,000 | 74,997,500 | ||||||
0.070%, due 01/23/151 | 177,000,000 | 176,992,428 | ||||||
0.090%, due 02/11/151 | 56,782,000 | 56,776,180 | ||||||
0.095%, due 02/20/151 | 25,003,000 | 24,999,701 | ||||||
0.110%, due 03/11/151 | 65,000,000 | 64,986,296 | ||||||
0.085%, due 04/17/151 | 66,700,000 | 66,683,306 | ||||||
0.125%, due 06/02/15 | 50,000,000 | 49,991,694 | ||||||
Federal Home Loan Mortgage Corp.* | ||||||||
0.040%, due 01/28/151 | 35,000,000 | 34,998,950 | ||||||
0.170%, due 07/23/151 | 50,000,000 | 49,952,069 | ||||||
0.170%, due 11/04/151 | 27,000,000 | 26,960,858 | ||||||
US Treasury Notes | ||||||||
0.250%, due 02/15/15 | 50,000,000 | 50,013,107 | ||||||
0.250%, due 12/15/15 | 75,000,000 | 75,035,968 | ||||||
Total US government and agency obligations | 822,387,753 | |||||||
Certificates of deposit—17.32% | ||||||||
Banking-non-US—11.26% | ||||||||
Bank of Nova Scotia | 50,000,000 | 50,000,000 | ||||||
Bank of Tokyo-Mitsubishi UFJ Ltd. | 45,000,000 | 45,000,000 | ||||||
HSBC Bank USA | 65,000,000 | 65,000,000 | ||||||
Mizuho Bank Ltd. | 50,000,000 | 50,000,000 | ||||||
National Australia Bank Ltd. | 40,000,000 | 40,000,000 | ||||||
National Bank of Canada | 50,000,000 | 50,000,000 | ||||||
Nordea Bank Finland PLC | 45,000,000 | 45,000,000 |
16
UBS RMA Money Market Portfolio
Statement of net assets—December 31, 2014 (unaudited)
Security description | Face amount | Value | ||||||
Certificates of deposit—(concluded) | ||||||||
Banking-non-US—(concluded) | ||||||||
Norinchukin Bank Ltd. | $ | 75,000,000 | $ | 75,000,000 | ||||
Oversea-Chinese Banking Corp. Ltd. | ||||||||
0.170%, due 02/02/15 | 30,000,000 | 30,000,000 | ||||||
0.220%, due 04/08/15 | 20,000,000 | 20,000,000 | ||||||
Rabobank Nederland NV | 36,000,000 | 36,000,000 | ||||||
Royal Bank of Canada | 40,000,000 | 40,000,000 | ||||||
Toronto-Dominion Bank | 30,000,000 | 30,000,000 | ||||||
576,000,000 | ||||||||
Banking-US—6.06% | ||||||||
Branch Banking & Trust Co. | 60,000,000 | 60,000,000 | ||||||
Citibank N.A. | ||||||||
0.180%, due 01/05/15 | 70,000,000 | 70,000,000 | ||||||
0.250%, due 05/07/15 | 50,000,000 | 50,000,000 | ||||||
JPMorgan Chase Bank N.A. | ||||||||
0.240%, due 06/05/15 | 40,000,000 | 40,000,000 | ||||||
0.320%, due 10/28/15 | 40,000,000 | 40,000,000 | ||||||
Wells Fargo Bank N.A. | 50,000,000 | 50,000,000 | ||||||
310,000,000 | ||||||||
Total certificates of deposit (cost—$886,000,000) |
| 886,000,000 | ||||||
Commercial paper1—40.91% | ||||||||
Asset backed-miscellaneous—22.65% | ||||||||
Albion Capital LLC | ||||||||
0.180%, due 01/16/15 | 52,246,000 | 52,242,082 | ||||||
0.210%, due 02/17/15 | 19,930,000 | 19,924,536 | ||||||
Antalis US Funding Corp. | 30,000,000 | 29,998,400 | ||||||
Atlantic Asset Securitization LLC | ||||||||
0.150%, due 01/06/15 | 50,000,000 | 49,998,958 | ||||||
0.160%, due 01/15/15 | 50,000,000 | 49,996,889 |
17
UBS RMA Money Market Portfolio
Statement of net assets—December 31, 2014 (unaudited)
Security description | Face amount | Value | ||||||
Commercial paper1—(continued) | ||||||||
Asset backed-miscellaneous—(continued) | ||||||||
Barton Capital LLC | $ | 45,000,000 | $ | 44,999,062 | ||||
CAFCO LLC | 40,000,000 | 39,983,111 | ||||||
Cancara Asset Securitisation LLC | ||||||||
0.140%, due 01/05/15 | 30,000,000 | 29,999,533 | ||||||
0.150%, due 01/06/15 | 48,000,000 | 47,999,000 | ||||||
Chariot Funding LLC | ||||||||
0.270%, due 03/03/15 | 25,000,000 | 24,988,563 | ||||||
0.230%, due 05/11/15 | 27,000,000 | 26,977,575 | ||||||
Ciesco LLC | 70,000,000 | 69,983,200 | ||||||
Gotham Funding Corp. | ||||||||
0.170%, due 01/05/15 | 35,000,000 | 34,999,339 | ||||||
0.170%, due 01/15/15 | 25,000,000 | 24,998,347 | ||||||
0.170%, due 03/10/15 | 45,000,000 | 44,985,550 | ||||||
LMA Americas LLC | ||||||||
0.160%, due 01/08/15 | 35,000,000 | 34,998,911 | ||||||
0.170%, due 01/20/15 | 50,000,000 | 49,995,514 | ||||||
Manhattan Asset Funding Co. LLC | ||||||||
0.210%, due 01/22/15 | 33,900,000 | 33,895,847 | ||||||
0.220%, due 03/10/15 | 35,000,000 | 34,985,456 | ||||||
Nieuw Amsterdam Receivables Corp. | 29,533,000 | 29,531,425 | ||||||
Old Line Funding LLC | ||||||||
0.190%, due 02/23/15 | 40,000,000 | 39,988,811 | ||||||
0.190%, due 03/19/15 | 35,000,000 | 34,985,776 | ||||||
0.270%, due 06/09/15 | 35,000,000 | 34,958,263 | ||||||
Sheffield Receivables Corp. | 35,000,000 | 34,990,949 | ||||||
Thunder Bay Funding LLC | ||||||||
0.190%, due 02/17/15 | 50,000,000 | 49,987,597 | ||||||
0.230%, due 05/28/15 | 45,000,000 | 44,957,738 | ||||||
Versailles Commercial Paper LLC | 50,000,000 | 50,000,000 |
18
UBS RMA Money Market Portfolio
Statement of net assets—December 31, 2014 (unaudited)
Security description | Face amount | Value | ||||||
Commercial paper1—(continued) | ||||||||
Asset backed-miscellaneous—(concluded) | ||||||||
Victory Receivables Corp. | $ | 40,000,000 | $ | 39,997,511 | ||||
Working Capital Management Co. | 53,000,000 | 52,998,277 | ||||||
1,158,346,220 | ||||||||
Banking-non-US—7.12% | ||||||||
ANZ National International Ltd. | 39,300,000 | 39,286,933 | ||||||
ASB Finance Ltd. | 35,000,000 | 35,000,000 | ||||||
Barclays Bank PLC | 65,000,000 | 64,977,160 | ||||||
KfW | 90,000,000 | 89,996,100 | ||||||
Nordea Bank AB | 45,000,000 | 44,971,675 | ||||||
Sumitomo Mitsui Banking Corp. | ||||||||
0.200%, due 01/07/15 | 35,000,000 | 34,998,833 | ||||||
0.205%, due 01/14/15 | 55,000,000 | 54,995,928 | ||||||
364,226,629 | ||||||||
Banking-US—6.06% | ||||||||
ABN Amro Funding USA LLC | 65,000,000 | 64,996,533 | ||||||
Bedford Row Funding Corp. | 25,000,000 | 24,996,667 | ||||||
BNP Paribas Finance, Inc. | 115,000,000 | 114,978,533 | ||||||
State Street Corp. | ||||||||
0.170%, due 03/12/15 | 55,000,000 | 54,981,820 | ||||||
0.200%, due 03/24/15 | 50,000,000 | 49,977,222 | ||||||
309,930,775 | ||||||||
Finance-captive automotive—0.98% | ||||||||
Toyota Motor Credit Corp. | 50,000,000 | 49,966,167 |
19
UBS RMA Money Market Portfolio
Statement of net assets—December 31, 2014 (unaudited)
Security description | Face amount | Value | ||||||
Commercial paper1—(concluded) | ||||||||
Finance-non-captive diversified—2.73% | ||||||||
General Electric Capital Corp. | ||||||||
0.210%, due 01/05/15 | $ | 45,000,000 | $ | 44,998,950 | ||||
0.200%, due 02/02/15 | 50,000,000 | 49,991,111 | ||||||
0.210%, due 03/04/15 | 45,000,000 | 44,983,725 | ||||||
139,973,786 | ||||||||
Insurance-life—1.37% | ||||||||
MetLife Short Term Funding LLC | 70,000,000 | 69,993,175 | ||||||
Total commercial paper (cost—$2,092,436,752) | 2,092,436,752 | |||||||
Short-term corporate obligations—3.03% | ||||||||
Banking-non-US—1.56% | ||||||||
Barclays Bank PLC | 50,000,000 | 50,000,000 | ||||||
Royal Bank of Canada | 30,000,000 | 30,000,000 | ||||||
80,000,000 | ||||||||
Banking-US—0.98% | ||||||||
Wells Fargo Bank N.A. | 50,000,000 | 50,000,000 | ||||||
Supranational—0.49% | ||||||||
International Bank for Reconstruction & Development | 25,000,000 | 25,000,000 | ||||||
Total short-term corporate obligations |
| 155,000,000 | ||||||
Non-US government agency—0.88% | ||||||||
Export Development Canada 0.190%, due 01/02/152,4 | 45,000,000 | 45,000,000 | ||||||
Repurchase agreements—21.79% | ||||||||
Repurchase agreement dated 12/31/14 with | 25,000,000 | 25,000,000 |
20
UBS RMA Money Market Portfolio
Statement of net assets—December 31, 2014 (unaudited)
Security description | Face amount | Value | ||||||
Repurchase agreements—(continued) | ||||||||
Repurchase agreement dated 12/31/14 with | $ | 30,000,000 | $ | 30,000,000 | ||||
Repurchase agreement dated 12/31/14 with | 160,000,000 | 160,000,000 | ||||||
Repurchase agreement dated 12/15/14 with | 100,000,000 | 100,000,000 | ||||||
Repurchase agreement dated 12/22/14 with | 200,000,000 | 200,000,000 | ||||||
Repurchase agreement dated 12/29/14 with | 150,000,000 | 150,000,000 |
21
UBS RMA Money Market Portfolio
Statement of net assets—December 31, 2014 (unaudited)
Security description | Face amount | Value | ||||||
Repurchase agreements—(concluded) | ||||||||
Repurchase agreement dated 12/31/14 with | $ | 23,800,000 | $ | 23,800,000 | ||||
Repurchase agreement dated 12/31/14 with | 215,000,000 | 215,000,000 | ||||||
Repurchase agreement dated 12/31/14 with | 471,000 | 471,000 | ||||||
Repurchase agreement dated 12/31/14 with | 210,000,000 | 210,000,000 | ||||||
Total repurchase agreements (cost—$1,114,271,000) |
| 1,114,271,000 | ||||||
Total investments (cost—$5,115,095,505 which approximates cost for federal income tax purposes)—100.01% | 5,115,095,505 | |||||||
Liabilities in excess of other assets—(0.01)% | (340,450 | ) | ||||||
Net assets (applicable to 5,114,742,877 shares of common stock outstanding equivalent to $1.00 per share)—100.00% | $ | 5,114,755,055 |
For a listing of defined portfolio acronyms that are used throughout the Statement of net assets, please refer to page 67.
22
UBS RMA Money Market Portfolio
Statement of net assets—December 31, 2014 (unaudited)
Fair valuation summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2014 in valuing the Portfolio’s investments:
Description | Unadjusted quoted prices in active markets for identical investments (Level 1) | Other significant observable inputs (Level 2) | Unobservable (Level 3) | Total | ||||||||||||
US government and agency obligations | $ | — | $ | 822,387,753 | $ | — | $ | 822,387,753 | ||||||||
Certificates of deposit | — | 886,000,000 | — | 886,000,000 | ||||||||||||
Commercial paper | — | 2,092,436,752 | — | 2,092,436,752 | ||||||||||||
Short-term corporate obligations | — | 155,000,000 | — | 155,000,000 | ||||||||||||
Non-US government agency | — | 45,000,000 | — | 45,000,000 | ||||||||||||
Repurchase agreements | — | 1,114,271,000 | — | 1,114,271,000 | ||||||||||||
Total | $ | — | $ | 5,115,095,505 | $ | — | $ | 5,115,095,505 |
At December 31, 2014, there were no transfers between Level 1 and Level 2.
Issuer breakdown by country or territory of origin
Percentage of total investments | ||||
United States | 78.2 | % | ||
Japan | 6.1 | |||
Canada | 4.8 | |||
United Kingdom | 3.5 | |||
Germany | 1.7 | |||
Australia | 1.5 | |||
Singapore | 1.0 | |||
Finland | 0.9 | |||
Sweden | 0.9 | |||
Netherlands | 0.7 | |||
New Zealand | 0.7 | |||
Total | 100.0 | % |
23
UBS RMA Money Market Portfolio
Statement of net assets—December 31, 2014 (unaudited)
Portfolio footnotes
* | On September 7, 2008, the Federal Housing Finance Agency placed the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation into conservatorship, and the US Treasury guaranteed the debt issued by those organizations. |
1 | Rates shown are the discount rates at date of purchase. |
2 | Variable or floating rate security. The interest rate shown is the current rate as of December 31, 2014 and changes periodically. The maturity date reflects earlier of reset date or stated maturity date. |
3 | Illiquid security as of December 31, 2014. |
4 | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities, which represent 1.47% of net assets as of December 31, 2014, are considered liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
5 | Investment has a put feature which allows the Fund to accelerate the maturity to seven days following notice by the Fund. |
24
See accompanying notes to financial statements
UBS RMA U.S. Government Portfolio
Statement of net assets—December 31, 2014 (unaudited)
Security description | Face amount | Value | ||||||
US government and agency obligations—49.09% | ||||||||
Federal Farm Credit Bank | $ | 15,000,000 | $ | 14,994,854 | ||||
0.110%, due 04/13/151 | 40,000,000 | 39,987,533 | ||||||
Federal Home Loan Bank | ||||||||
0.045%, due 01/02/151 | 84,000,000 | 83,999,895 | ||||||
0.103%, due 01/03/152 | 25,000,000 | 24,999,960 | ||||||
0.120%, due 01/07/15 | 50,000,000 | 49,999,816 | ||||||
0.060%, due 01/09/151 | 14,250,000 | 14,249,810 | ||||||
0.060%, due 01/14/151 | 25,000,000 | 24,999,458 | ||||||
0.070%, due 01/14/151 | 17,045,000 | 17,044,569 | ||||||
0.054%, due 01/16/151 | 23,000,000 | 22,999,482 | ||||||
0.250%, due 01/16/15 | 27,500,000 | 27,501,380 | ||||||
0.060%, due 01/21/151 | 100,000,000 | 99,996,667 | ||||||
0.070%, due 01/21/151 | 31,000,000 | 30,998,794 | ||||||
0.070%, due 01/23/151 | 35,000,000 | 34,998,503 | ||||||
0.070%, due 02/04/151 | 10,000,000 | 9,999,339 | ||||||
0.075%, due 02/18/151 | 23,700,000 | 23,697,630 | ||||||
0.095%, due 02/20/151 | 10,000,000 | 9,998,681 | ||||||
0.180%, due 03/20/151 | 35,000,000 | 34,986,350 | ||||||
0.120%, due 05/18/151 | 40,000,000 | 39,981,733 | ||||||
0.140%, due 06/19/151 | 50,000,000 | 49,967,139 | ||||||
0.170%, due 09/04/151 | 50,000,000 | 49,941,917 | ||||||
Federal Home Loan Mortgage Corp.* | ||||||||
0.070%, due 04/23/151 | 50,000,000 | �� | 49,989,111 | |||||
0.170%, due 07/23/151 | 43,000,000 | 42,958,780 | ||||||
Federal National Mortgage Association* | ||||||||
0.115%, due 05/18/151 | 50,000,000 | 49,978,118 | ||||||
US Treasury Bill | 55,000,000 | 54,999,513 | ||||||
US Treasury Notes | 15,000,000 | 15,000,417 | ||||||
4.000%, due 02/15/15 | 25,000,000 | 25,120,640 | ||||||
Total US government and agency obligations |
| 943,390,089 |
25
UBS RMA U.S. Government Portfolio
Statement of net assets—December 31, 2014 (unaudited)
Security description | Face amount | Value | ||||||
Repurchase agreements—50.89% | ||||||||
Repurchase agreement dated 12/31/14 with | $ | 305,000,000 | $ | 305,000,000 | ||||
Repurchase agreement dated 12/31/14 with BNP Paribas Securities Corp., 0.050% due 01/02/15, collateralized by $110,378,800 US Treasury Notes, 2.125% due 08/31/20 to 09/30/21; (value—$112,200,062); proceeds: $110,000,306 | 110,000,000 | 110,000,000 | ||||||
Repurchase agreement dated 12/31/14 with | 12,300,000 | 12,300,000 | ||||||
Repurchase agreement dated 12/30/14 with | 200,000,000 | 200,000,000 | ||||||
Repurchase agreement dated 12/31/14 with | 250,000,000 | 250,000,000 | ||||||
Repurchase agreement dated 12/31/14 with | 519,000 | 519,000 |
26
UBS RMA U.S. Government Portfolio
Statement of net assets—December 31, 2014 (unaudited)
Security description | Face amount | Value | ||||||
Repurchase agreements—(concluded) | ||||||||
Repurchase agreement dated 12/31/14 with | $ | 100,000,000 | $ | 100,000,000 | ||||
Total repurchase agreements (cost—$977,819,000) |
| 977,819,000 | ||||||
Total investments (cost—$1,921,209,089 which approximates cost for federal income tax purposes)—99.98% | 1,921,209,089 | |||||||
Other assets in excess of liabilities—0.02% | 347,747 | |||||||
Net assets (applicable to 1,921,548,224 shares of common stock outstanding equivalent to $1.00 per share)—100.00% | $ | 1,921,556,836 |
For a listing of defined portfolio acronyms that are used throughout the Statement of net assets, please refer to page 67.
Fair valuation summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2014 in valuing the Portfolio’s investments:
Description | Unadjusted quoted prices in active markets for identical investments (Level 1) | Other significant observable inputs (Level 2) | Unobservable (Level 3) | Total | ||||||||||||
US government and agency obligations | $ | — | $ | 943,390,089 | $ | — | $ | 943,390,089 | ||||||||
Repurchase agreements | — | 977,819,000 | — | 977,819,000 | ||||||||||||
Total | $ | — | $ | 1,921,209,089 | $ | — | $ | 1,921,209,089 |
At December 31, 2014, there were no transfers between Level 1 and Level 2.
27
UBS RMA U.S. Government Portfolio
Statement of net assets—December 31, 2014 (unaudited)
Portfolio footnotes
* | On September 7, 2008, the Federal Housing Finance Agency placed the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation into conservatorship, and the US Treasury guaranteed the debt issued by those organizations. |
1 | Rates shown are the discount rates at date of purchase. |
2 | Variable or floating rate security. The interest rate shown is the current rate as of December 31, 2014 and changes periodically. The maturity date reflects earlier of reset date or stated maturity date. |
28
See accompanying notes to financial statements
UBS RMA Tax-Free Fund
Statement of net assets—December 31, 2014 (unaudited)
Security description | Face amount | Value | ||||||
Municipal bonds and notes—87.95% | ||||||||
Alabama—0.01% | ||||||||
University of Alabama Revenue (University Hospital), Series C, | $ | 400,000 | $ | 400,000 | ||||
Alaska—1.20% | ||||||||
Alaska Bond Anticipation Notes, | 30,000,000 | 30,057,838 | ||||||
Valdez Marine Terminal Revenue Refunding (ExxonMobil Pipeline Co. Project), | 5,715,000 | 5,715,000 | ||||||
Series C, | 540,000 | 540,000 | ||||||
36,312,838 | ||||||||
Arizona—0.09% | ||||||||
Pima County Industrial Development Authority (Tucson Electric Power Co.- Irvington Project), Series A, | 2,700,000 | 2,700,000 | ||||||
California—7.14% | ||||||||
Bay Area Toll Authority Toll Bridge Revenue (Bay Area), | 2,000,000 | 2,000,000 | ||||||
Series G-1, | 5,000,000 | 5,000,000 | ||||||
California Health Facilities Financing Authority Revenue (Adventist Health Systems), Series A, | 1,200,000 | 1,200,000 | ||||||
California Health Facilities Financing Authority Revenue Refunding (Stanford Hospital), Series B-1, | 8,300,000 | 8,300,000 | ||||||
California State Enterprise Development Authority Revenue (Robert Louis Stevenson School), | 7,650,000 | 7,650,000 | ||||||
California State Kindergarten, Series B4, | 1,100,000 | 1,100,000 | ||||||
California State Revenue Anticipation Notes, | 40,000,000 | 40,261,541 |
29
UBS RMA Tax-Free Fund
Statement of net assets—December 31, 2014 (unaudited)
Security description | Face amount | Value | ||||||
Municipal bonds and notes—(continued) | ||||||||
California—(continued) | ||||||||
California Statewide Communities Development Authority Revenue (Health Facilities Community Hospital of Monterey Peninsula), Series B, | $ | 12,000,000 | $ | 12,000,000 | ||||
County of Riverside Tax & Revenue Anticipation Notes, | 4,000,000 | 4,027,277 | ||||||
Los Angeles County Tax & Revenue Anticipation Notes, | 6,000,000 | 6,040,767 | ||||||
Los Angeles Water and Power Revenue, Subseries B-3, | 7,700,000 | 7,700,000 | ||||||
Metropolitan Water District Southern California Revenue Refunding, Series A-2, | 3,480,000 | 3,480,000 | ||||||
Metropolitan Water District Southern California Waterworks Revenue, Series B-3, | 5,000,000 | 5,000,000 | ||||||
Modesto Water Revenue Certificates of Participation Refunding, Series A, | 15,905,000 | 15,905,000 | ||||||
Sacramento Municipal Utility District, Subordinate, Series L, | 4,300,000 | 4,300,000 | ||||||
San Diego County Regional Transportation Commission Sales Tax Revenue (Limited Tax), | 10,300,000 | 10,300,000 | ||||||
Santa Clara County Financing Authority Revenue (El Camino Hospital), Series A, | 10,000,000 | 10,000,000 | ||||||
Santa Clara Electric Revenue, Subseries B, | 4,755,000 | 4,755,000 | ||||||
Santa Clara Valley Transportation Authority Sales Tax Revenue Refunding, | 25,420,000 | 25,420,000 | ||||||
Series B, | 7,080,000 | 7,080,000 | ||||||
Series C, | 7,065,000 | 7,065,000 |
30
UBS RMA Tax-Free Fund
Statement of net assets—December 31, 2014 (unaudited)
Security description | Face amount | Value | ||||||
Municipal bonds and notes—(continued) | ||||||||
California—(concluded) | ||||||||
Torrance Revenue (Torrance Memorial Medical Center), Series B, | $ | 11,400,000 | $ | 11,400,000 | ||||
Whittier Health Facilities Revenue (Presbyterian Intercommunity), Series A, | 15,700,000 | 15,700,000 | ||||||
215,684,585 | ||||||||
Colorado—2.18% | ||||||||
Denver City & County Certificates of Participation Refunding, | 20,700,000 | 20,700,000 | ||||||
Series A2, | 19,685,000 | 19,685,000 | ||||||
Series A3, | 19,190,000 | 19,190,000 | ||||||
El Paso County Revenue (YMCA Pikes Peak Region Project), | 6,155,000 | 6,155,000 | ||||||
65,730,000 | ||||||||
Connecticut—0.88% | ||||||||
Connecticut State Health & Educational Facilities Authority Revenue (Yale University), Series V-1, | 1,450,000 | 1,450,000 | ||||||
Hartford County Metropolitan District Bond Anticipation Notes, Series D, | 25,000,000 | 25,048,706 | ||||||
26,498,706 | ||||||||
District of Columbia—1.41% | ||||||||
District of Columbia Revenue (German Marshall Fund of United States), | 8,000,000 | 8,000,000 | ||||||
District of Columbia University Revenue Refunding (Georgetown University), Series B, | 15,050,000 | 15,050,000 | ||||||
District of Columbia Water & Sewer Authority Revenue (Subordinate Lien), Series B-1, | 1,825,000 | 1,825,000 |
31
UBS RMA Tax-Free Fund
Statement of net assets—December 31, 2014 (unaudited)
Security description | Face amount | Value | ||||||
Municipal bonds and notes—(continued) | ||||||||
District of Columbia—(concluded) | ||||||||
Metropolitan Washington, D.C. Airport Authority Airport System Revenue Subseries D-2, | $ | 17,630,000 | $ | 17,630,000 | ||||
42,505,000 | ||||||||
Florida—2.51% | ||||||||
Florida State Board of Education (Public Education Capital Outlay Bonds), Series E (Bank of America Austin Certificates, Series 2008-1059), | 8,335,000 | 8,335,000 | ||||||
Hillsborough County School Board Certificates of Participation (Master Lease Program), Series C, | 39,410,000 | 39,410,000 | ||||||
JEA Water & Sewer System Revenue, | 3,550,000 | 3,550,000 | ||||||
Subseries B-1, | 10,445,000 | 10,445,000 | ||||||
Orange County Health Facilities Authority Revenue (Hospital-Orlando Regional), Series E, | 4,500,000 | 4,500,000 | ||||||
Orange County Health Facilities Authority Revenue (The Nemours Foundation Project), Series B, | 9,700,000 | 9,700,000 | ||||||
75,940,000 | ||||||||
Georgia—2.01% | ||||||||
Private Colleges & Universities Authority Revenue (Emory University), | 10,200,000 | 10,200,000 | ||||||
Series B-2, | 30,575,000 | 30,575,000 | ||||||
Series C-4, | 19,885,000 | 19,885,000 | ||||||
60,660,000 | ||||||||
Idaho—1.34% | ||||||||
Idaho Tax Anticipation Notes, | 40,000,000 | 40,372,954 |
32
UBS RMA Tax-Free Fund
Statement of net assets—December 31, 2014 (unaudited)
Security description | Face amount | Value | ||||||
Municipal bonds and notes—(continued) | ||||||||
Illinois—8.82% | ||||||||
Chicago Sales Tax Revenue Refunding, Series D-2, | $ | 27,500,000 | $ | 27,500,000 | ||||
Chicago Waterworks Revenue (Second Lien), | 3,000,000 | 3,000,000 | ||||||
Subseries 2000-2, | 3,000,000 | 3,000,000 | ||||||
Chicago Waterworks Revenue Refunding, | 5,000,000 | 5,000,000 | ||||||
Subseries 2004-2, | 10,000,000 | 10,000,000 | ||||||
City of Chicago (Neighborhoods Alive 21), Series B, | 32,535,000 | 32,535,000 | ||||||
City of Chicago, Series D-1, | 12,180,000 | 12,180,000 | ||||||
Cook County School District No. 036 Winnetka (Morgan Stanley Floater Certificates), Series 1919, | 9,935,000 | 9,935,000 | ||||||
Illinois Development Finance Authority Revenue (Francis W. Parker School Project), | 1,900,000 | 1,900,000 | ||||||
Illinois Development Finance Authority Revenue (Lyric Opera Chicago Project), | 17,000,000 | 17,000,000 | ||||||
Illinois Finance Authority Revenue | 4,000,000 | 4,000,000 | ||||||
Illinois Finance Authority Revenue | 12,000,000 | 12,000,000 | ||||||
Illinois Finance Authority Revenue | 9,700,000 | 9,700,000 | ||||||
Illinois Finance Authority Revenue | 5,675,000 | 5,675,000 | ||||||
Illinois Finance Authority Revenue | 9,496,000 | 9,496,000 |
33
UBS RMA Tax-Free Fund
Statement of net assets—December 31, 2014 (unaudited)
Security description | Face amount | Value | ||||||
Municipal bonds and notes—(continued) | ||||||||
Illinois—(concluded) | ||||||||
Illinois Finance Authority Revenue | $ | 6,485,000 | $ | 6,485,000 | ||||
Illinois Finance Authority Revenue Refunding | 25,145,000 | 25,145,000 | ||||||
Illinois Finance Authority Revenue Refunding (Swedish Covenant), Series A, | 23,500,000 | 23,500,000 | ||||||
Illinois Finance Authority Revenue Refunding (University of Chicago), Series C, | 7,673,000 | 7,673,000 | ||||||
Illinois State Finance Authority Revenue | 16,050,000 | 16,050,000 | ||||||
Illinois State Toll Highway Authority Toll Highway Revenue (Senior Priority), Series A-2D, | 7,800,000 | 7,800,000 | ||||||
Illinois State, Series B-4, | 5,000,000 | 5,000,000 | ||||||
Lombard Revenue (National University Health Sciences Project), | 6,370,000 | 6,370,000 | ||||||
South Suburban Joint Action Water Agency Revenue, | 5,550,000 | 5,550,000 | ||||||
266,494,000 | ||||||||
Indiana—1.45% | ||||||||
Indiana Finance Authority Environmental Revenue Refunding (Duke Energy, Inc. Project), | 3,700,000 | 3,700,000 | ||||||
Series A-5, | 10,780,000 | 10,780,000 | ||||||
Indiana Finance Authority Hospital Revenue | 3,165,000 | 3,165,000 | ||||||
Indiana Finance Authority Revenue | 6,000,000 | 6,000,000 |
34
UBS RMA Tax-Free Fund
Statement of net assets—December 31, 2014 (unaudited)
Security description | Face amount | Value | ||||||
Municipal bonds and notes—(continued) | ||||||||
Indiana—(concluded) | ||||||||
Indiana Municipal Power Agency Power Supply Systems Revenue Refunding, Series A, | $ | 8,250,000 | $ | 8,250,000 | ||||
Indianapolis Multi-Family Housing Revenue | 8,000,000 | 8,000,000 | ||||||
Lawrenceburg Pollution Control Revenue Refunding (Indiana Michigan Power Co. Project), Series H, | 4,000,000 | 4,000,000 | ||||||
43,895,000 | ||||||||
Kansas—0.69% | ||||||||
Kansas State Department of Transportation Highway Revenue, Series C-4, | 10,000,000 | 10,000,000 | ||||||
Mission Multi-Family Revenue Refunding | 11,000,000 | 11,000,000 | ||||||
21,000,000 | ||||||||
Kentucky—0.32% | ||||||||
Boone County Pollution Control Revenue Refunding (Duke Energy, Inc.), | 5,500,000 | 5,500,000 | ||||||
Jeffersontown Lease Program Revenue | 2,375,000 | 2,375,000 | ||||||
Williamstown League of Cities Funding Trust Lease Revenue, Series B, | 1,845,000 | 1,845,000 | ||||||
9,720,000 | ||||||||
Louisiana—2.21% | ||||||||
East Baton Rouge Parish Industrial Development Board, Inc. Revenue (ExxonMobil Project), | 39,550,000 | 39,550,000 | ||||||
Series B, | 4,900,000 | 4,900,000 |
35
UBS RMA Tax-Free Fund
Statement of net assets—December 31, 2014 (unaudited)
Security description | Face amount | Value | ||||||
Municipal bonds and notes—(continued) | ||||||||
Louisiana—(concluded) | ||||||||
East Baton Rouge Parish Industrial Development Board, Inc. Revenue Gulf Opportunity Zone (ExxonMobil Project), | $ | 1,400,000 | $ | 1,400,000 | ||||
East Baton Rouge Parish Pollution Control Revenue Refunding (Exxon Project), | 19,000,000 | 19,000,000 | ||||||
Louisiana Public Facilities Authority Revenue Refunding (Christus Health), Series B2, | 1,945,000 | 1,945,000 | ||||||
66,795,000 | ||||||||
Maryland—1.56% | ||||||||
Maryland Economic Development Corp. Revenue (Howard Hughes Medical Institute), Series A, | 6,155,000 | 6,155,000 | ||||||
Maryland State Health & Higher Educational Facilities Authority Revenue (Johns Hopkins University), | 8,400,000 | 8,400,000 | ||||||
Montgomery County Housing Development Corp. Opportunities Commission Multi-Family Revenue, | 2,905,000 | 2,905,000 | ||||||
Montgomery County Housing Opportunities Commission Multi-Family Revenue, (Canterbury Apartments), Series A, (FNMA Insured), | 4,500,000 | 4,500,000 | ||||||
Washington Suburban Sanitation District Bond Anticipation Notes, Series A, | 25,200,000 | 25,200,000 | ||||||
47,160,000 | ||||||||
Massachusetts—0.53% | ||||||||
Massachusetts Development Finance Agency Revenue Refunding (Higher Education Smith College), | 12,165,000 | 12,165,000 | ||||||
Massachusetts Health & Educational Facilities Authority Revenue (Partners Healthcare System), Series F3, | 3,820,000 | 3,820,000 | ||||||
15,985,000 |
36
UBS RMA Tax-Free Fund
Statement of net assets—December 31, 2014 (unaudited)
Security description | Face amount | Value | ||||||
Municipal bonds and notes—(continued) | ||||||||
Michigan—0.49% | ||||||||
Green Lake Township Economic Development Corp. Revenue Refunding (Interlochen Center Project), | $ | 2,800,000 | $ | 2,800,000 | ||||
Michigan State Hospital Finance Authority Revenue (Trinity Health Credit), Series F, | 7,335,000 | 7,335,000 | ||||||
Michigan State Strategic Fund Limited Obligation Revenue (Greenpath, Inc. Project), Series A, | 4,590,000 | 4,590,000 | ||||||
14,725,000 | ||||||||
Minnesota—0.56% | ||||||||
Rochester Health Care Facilities Revenue (Mayo Clinic), | 10,965,000 | 10,965,000 | ||||||
Series B, | 5,900,000 | 5,900,000 | ||||||
16,865,000 | ||||||||
Mississippi—3.32% | ||||||||
Mississippi Business Finance Corp. Gulf Opportunity Zone (Chevron USA, Inc. Project), | 15,900,000 | 15,900,000 | ||||||
Series C, | 20,745,000 | 20,745,000 | ||||||
Series D, | 4,400,000 | 4,400,000 | ||||||
Series G, | 31,730,000 | 31,730,000 | ||||||
Series J, | 5,000,000 | 5,000,000 | ||||||
Mississippi Development Bank Special Obligation (Jackson County Industrial Water System Project), | 22,500,000 | 22,500,000 | ||||||
100,275,000 | ||||||||
Missouri—3.04% | ||||||||
Kansas City Industrial Development Authority Revenue Refunding (Ethans Apartments Project), | 14,500,000 | 14,500,000 |
37
UBS RMA Tax-Free Fund
Statement of net assets—December 31, 2014 (unaudited)
Security description | Face amount | Value | ||||||
Municipal bonds and notes—(continued) | ||||||||
Missouri—(concluded) | ||||||||
Missouri Health & Educational Facilities Authority Educational Facilities Revenue (Ascension Healthcare), | $ | 7,000,000 | $ | 7,000,000 | ||||
Series C-3, | 3,800,000 | 3,800,000 | ||||||
Series C-5, | 30,100,000 | 30,100,000 | ||||||
Missouri Health & Educational Facilities Authority Educational Facilities Revenue (St. Louis University), | 4,405,000 | 4,405,000 | ||||||
Missouri Health & Educational Facilities Authority Educational Facilities Revenue (Washington University), | ||||||||
Series B, | 3,300,000 | 3,300,000 | ||||||
Series C, | 18,700,000 | 18,700,000 | ||||||
Series D, | 10,000,000 | 10,000,000 | ||||||
91,805,000 | ||||||||
Nebraska—0.31% | ||||||||
Douglas County Hospital Authority No. 002 Revenue Refunding (Health Facilities for Children), Series A, | 9,500,000 | 9,500,000 | ||||||
New Hampshire—0.75% | ||||||||
New Hampshire Health & Education Facilities Authority Revenue (Barclays Capital Municipal Trust Receipts Series 7WJ), | 8,825,000 | 8,825,000 | ||||||
New Hampshire Health & Education Facilities Authority Revenue (Dartmouth College), | 9,155,000 | 9,155,000 | ||||||
New Hampshire Health & Education Facilities Authority Revenue (River College), | 4,760,000 | 4,760,000 | ||||||
22,740,000 |
38
UBS RMA Tax-Free Fund
Statement of net assets—December 31, 2014 (unaudited)
Security description | Face amount | Value | ||||||
Municipal bonds and notes—(continued) | ||||||||
New Jersey—1.17% | ||||||||
Burlington County Bridge Community Revenue (Lutheran Home Project), Series A, | $ | 2,815,000 | $ | 2,815,000 | ||||
New Jersey Economic Development Authority Revenue (Bancroft Neurohealth Project), | 2,660,000 | 2,660,000 | ||||||
New Jersey Economic Development Authority Revenue (Peddie School Project), | 4,800,000 | 4,800,000 | ||||||
New Jersey Educational Facilities Authority Revenue (Centenary College), Series A, | 2,675,000 | 2,675,000 | ||||||
New Jersey Health Care Facilities Financing Authority Revenue (Robert Wood Johnson University), | 9,360,000 | 9,360,000 | ||||||
New Jersey Health Care Facilities Financing Authority Revenue (Virtua Health), Series D, | 11,100,000 | 11,100,000 | ||||||
New Jersey Health Care Facilities Financing Authority Revenue, Series A-3, | 2,060,000 | 2,060,000 | ||||||
35,470,000 | ||||||||
New Mexico—0.26% | ||||||||
New Mexico Finance Authority Transportation Revenue Refunding (Sub Lien), Subseries B-1, | 8,000,000 | 8,000,000 | ||||||
New York—13.51% | ||||||||
Buffalo Municipal Water Finance Authority Revenue Refunding, 0.030%, VRD | 5,070,000 | 5,070,000 | ||||||
Dutchess County Industrial Development Agency Civic Facilities Revenue (Marist College), Series A, | 6,485,000 | 6,485,000 | ||||||
Long Island Power Authority, Series D, | 6,590,000 | 6,590,000 | ||||||
Metropolitan Transportation Authority New York Dedicated Tax Fund, Subseries B-1, | 24,590,000 | 24,590,000 |
39
UBS RMA Tax-Free Fund
Statement of net assets—December 31, 2014 (unaudited)
Security description | Face amount | Value | ||||||
Municipal bonds and notes—(continued) | ||||||||
New York—(continued) | ||||||||
Nassau Health Care Corp. Revenue, Series B-1, | $ | 7,700,000 | $ | 7,700,000 | ||||
New York City Health & Hospital Corp. Revenue (Health Systems), Series C, | 20,000,000 | 20,000,000 | ||||||
New York City Housing Development Corp. Multi-Family Revenue (The Crest), Series A, | 27,400,000 | 27,400,000 | ||||||
New York City Housing Development Corp. Multi-Family Revenue Mortgage (Marseilles Apartments), Series A, | 1,990,000 | 1,990,000 | ||||||
New York City Municipal Finance Authority Water & Sewer Systems Revenue (Second General Fiscal 2008), | 1,500,000 | 1,500,000 | ||||||
Series BB-2, | 2,000,000 | 2,000,000 | ||||||
Series BB-5, | 29,850,000 | 29,850,000 | ||||||
New York City Municipal Finance Authority Water & Sewer Systems Revenue (Second Generation Resolution), Series A, | 9,100,000 | 9,100,000 | ||||||
New York City Municipal Water Finance Authority Water & Sewer Systems Revenue, | 1,700,000 | 1,700,000 | ||||||
Subseries F1A, | 14,020,000 | 14,020,000 | ||||||
New York City Transitional Finance Authority Future Tax Secured Revenue, | 5,000,000 | 5,000,000 | ||||||
Subseries A-4, | 34,450,000 | 34,450,000 | ||||||
0.020%, VRD | 2,000,000 | 2,000,000 | ||||||
Subseries D-4, | 10,300,000 | 10,300,000 |
40
UBS RMA Tax-Free Fund
Statement of net assets—December 31, 2014 (unaudited)
Security description | Face amount | Value | ||||||
Municipal bonds and notes—(continued) | ||||||||
New York—(continued) | ||||||||
New York City, | $ | 250,000 | $ | 250,000 | ||||
Subseries B-3, | 12,045,000 | 12,045,000 | ||||||
Subseries D-4, | 15,000,000 | 15,000,000 | ||||||
Subseries G-7, | 17,150,000 | 17,150,000 | ||||||
Subseries L-3, | 3,800,000 | 3,800,000 | ||||||
New York State Dormitory Authority Revenue | 16,285,000 | 16,285,000 | ||||||
Series A-2, | 12,700,000 | 12,700,000 | ||||||
New York State Dormitory Authority Revenue | 6,400,000 | 6,400,000 | ||||||
New York State Dormitory Authority Revenue State Supported Debt (City University), Series C, | 3,900,000 | 3,900,000 | ||||||
New York State Dormitory Authority Revenue State Supported Debt (Cornell University), Series A, | 12,375,000 | 12,375,000 | ||||||
New York State Dormitory Authority Revenue State Supported Debt (New York Public Library), | 4,615,000 | 4,615,000 | ||||||
Series B, | 2,575,000 | 2,575,000 | ||||||
New York State Housing Finance Agency (Riverside Center 2 Housing), Series A-2, | 11,900,000 | 11,900,000 |
41
UBS RMA Tax-Free Fund
Statement of net assets—December 31, 2014 (unaudited)
Security description | Face amount | Value | ||||||
Municipal bonds and notes—(continued) | ||||||||
New York—(concluded) | ||||||||
New York State Housing Finance Agency Affordable Housing Revenue (Housing Bowery Place I), | $ | 12,300,000 | $ | 12,300,000 | ||||
New York State Housing Finance Agency Revenue (20 River Terrace Housing), Series A, | 4,700,000 | 4,700,000 | ||||||
New York State Housing Finance Agency Revenue (Housing-Dock Street), Series A, | 6,000,000 | 6,000,000 | ||||||
New York State Housing Finance Agency Revenue (Maestro West Chelsea Housing), Series A, | 2,000,000 | 2,000,000 | ||||||
New York State Urban Development Corp. Revenue Refunding (Service Contract), Series A-5, | 2,100,000 | 2,100,000 | ||||||
Onondaga County Industrial Development Agency (Syracuse University Project), Series B, | 8,775,000 | 8,775,000 | ||||||
Port Washington Union Free School District Tax Anticipation Notes, | 5,000,000 | 5,008,905 | ||||||
Saratoga County Capital Resource Corp. Revenue (Saratoga Hospital Project), | 2,950,000 | 2,950,000 | ||||||
Sewanhaka Central High School District of Elmont Bond Anticipation Notes, | 3,000,000 | 3,013,548 | ||||||
Syracuse Industrial Development Agency Civic Facility Revenue (Syracuse University), Series A, | 21,165,000 | 21,165,000 | ||||||
Triborough Bridge & Tunnel Authority Revenue, | 7,870,000 | 7,870,000 | ||||||
Series B-3, | 3,600,000 | 3,600,000 | ||||||
408,222,453 |
42
UBS RMA Tax-Free Fund
Statement of net assets—December 31, 2014 (unaudited)
Security description | Face amount | Value | ||||||
Municipal bonds and notes—(continued) | ||||||||
North Carolina—5.35% | ||||||||
Charlotte Water & Sewer System Revenue Refunding, | $ | 27,090,000 | $ | 27,090,000 | ||||
Charlotte Water & Sewer System Revenue, Series B, | 5,900,000 | 5,900,000 | ||||||
Charlotte-Mecklenburg Hospital Authority Health Care Systems Revenue (Carolinas Hospital), | 12,000,000 | 12,000,000 | ||||||
Charlotte-Mecklenburg Hospital Authority Health Care Systems Revenue Refunding (Carolinas Healthcare), Series H, | 57,025,000 | 57,025,000 | ||||||
Guilford County, Series B, | 3,345,000 | 3,345,000 | ||||||
North Carolina Capital Facilities Finance Agency Educational Facilities Revenue (Wake Forest University), Series B, | 6,650,000 | 6,650,000 | ||||||
North Carolina Educational Facilities Finance Agency Revenue (Duke University Project), Series A, | 16,420,000 | 16,420,000 | ||||||
North Carolina Medical Care Commission Health Care Facilities Revenue (First Health Carolinas), | 15,015,000 | 15,015,000 | ||||||
North Carolina State Refunding, | 9,580,000 | 9,656,633 | ||||||
Series E, | 6,075,000 | 6,173,227 | ||||||
University of North Carolina Hospital Chapel Hill Revenue, Series B, | 2,300,000 | 2,300,000 | ||||||
161,574,860 | ||||||||
Ohio—4.73% | ||||||||
Butler County Capital Funding Revenue | 5,265,000 | 5,265,000 |
43
UBS RMA Tax-Free Fund
Statement of net assets—December 31, 2014 (unaudited)
Security description | Face amount | Value | ||||||
Municipal bonds and notes—(continued) | ||||||||
Ohio—(concluded) | ||||||||
Cleveland-Cuyahoga County Port Authority Revenue (Carnegie/89th Garage Project), | $ | 9,535,000 | $ | 9,535,000 | ||||
Columbus Sewer Revenue, Series B, | 12,250,000 | 12,250,000 | ||||||
Middletown Hospital Facilities Revenue | 11,670,000 | 11,670,000 | ||||||
Ohio (Common Schools), | 5,100,000 | 5,100,000 | ||||||
Series B, | 13,000,000 | 13,000,000 | ||||||
0.030%, VRD | 30,940,000 | 30,940,000 | ||||||
Series D, | 38,500,000 | 38,500,000 | ||||||
Ohio Educational Facilities Communication Revenue Hospital (JP Morgan Chase PUTTERs, | 6,225,000 | 6,225,000 | ||||||
Ohio State University General Receipts, | 6,300,000 | 6,300,000 | ||||||
Series B, | 4,100,000 | 4,100,000 | ||||||
142,885,000 | ||||||||
Oregon—1.00% | ||||||||
Oregon State Facilities Authority Revenue (Oregon Episcopal School Projects), Series A, | 7,885,000 | 7,885,000 | ||||||
Oregon State Tax Anticipation Notes, Series A, 2.000%, due 06/15/15 | 22,000,000 | 22,186,611 | ||||||
30,071,611 | ||||||||
Pennsylvania—3.51% | ||||||||
Allegheny County Higher Education Building Authority University Revenue Refunding (Carnegie Mellon University), | 2,000,000 | 2,000,000 |
44
UBS RMA Tax-Free Fund
Statement of net assets—December 31, 2014 (unaudited)
Security description | Face amount | Value | ||||||
Municipal bonds and notes—(continued) | ||||||||
Pennsylvania—(concluded) | ||||||||
Allegheny County Industrial Development Authority Revenue (Watson Institute of Friendship), | $ | 3,550,000 | $ | 3,550,000 | ||||
Delaware River Port Authority of Pennsylvania & New Jersey Revenue Refunding, Series B, | 32,925,000 | 32,925,000 | ||||||
Emmaus General Authority Revenue, | 5,000,000 | 5,000,000 | ||||||
Pennsylvania Economic Development Financing Authority Unemployment Compensation Revenue, Series C, | 5,470,000 | 5,470,000 | ||||||
Philadelphia Authority for Industrial Development Lease Revenue Refunding, Series B-3, | 4,000,000 | 4,000,000 | ||||||
Philadelphia Gas Works Revenue Refunding, Series C, | 8,000,000 | 8,000,000 | ||||||
Philadelphia Tax and Revenue Anticipation Notes, | 12,000,000 | 12,051,362 | ||||||
Pittsburgh Water & Sewer Authority Water & Sewer Systems Revenue (1st Lien), Series B2, | 21,045,000 | 21,045,000 | ||||||
Washington County Authority Revenue Refunding (University of Pennsylvania), | 8,720,000 | 8,720,000 | ||||||
Washington County Hospital Authority Revenue (Monongahela Valley Hospital Project), Series B, | 3,395,000 | 3,395,000 | ||||||
106,156,362 | ||||||||
Rhode Island—0.04% | ||||||||
Rhode Island Health & Educational Building Corp. Higher Educational Facilities Revenue Refunding (New England Institute of Technology), | 1,275,000 | 1,275,000 |
45
UBS RMA Tax-Free Fund
Statement of net assets—December 31, 2014 (unaudited)
Security description | Face amount | Value | ||||||
Municipal bonds and notes—(continued) | ||||||||
South Carolina—1.40% | ||||||||
Charleston County School District Bonds Anticipation Notes (Sales Tax Projects), Series B, (SCSDE Insured), | $ | 30,000,000 | $ | 30,061,504 | ||||
Charleston County School District Tax Anticipation Notes, (SCSDE Insured), | 12,150,000 | 12,184,846 | ||||||
42,246,350 | ||||||||
South Dakota—0.43% | ||||||||
South Dakota Health & Educational Facilities Authority Revenue (Regional Health), | 12,965,000 | 12,965,000 | ||||||
Tennessee—0.38% | ||||||||
Memphis Health Educational & Housing Facility Board Multi-Family Housing Revenue (Ashland Lakes II Apartments Project), Series A, | 11,500,000 | 11,500,000 | ||||||
Texas—7.24% | ||||||||
Alamo Community College District (Citigroup ROCS, | 7,595,000 | 7,595,000 | ||||||
Harris County Cultural Education Facilities Finance Corp. Revenue (Methodist Hospital), | 5,735,000 | 5,735,000 | ||||||
Subseries C-2, | 6,420,000 | 6,420,000 | ||||||
Harris County Health Facilities Development Corp. Revenue Refunding (Methodist Hospital Systems), | 8,080,000 | 8,080,000 | ||||||
Harris County Hospital District Revenue Refunding (Senior Lien), | 8,440,000 | 8,440,000 | ||||||
Houston Airport System Revenue Refunding | 4,890,000 | 4,890,000 |
46
UBS RMA Tax-Free Fund
Statement of net assets—December 31, 2014 (unaudited)
Security description | Face amount | Value | ||||||
Municipal bonds and notes—(continued) | ||||||||
Texas—(concluded) | ||||||||
Houston Higher Education Finance Corp. Higher Education Revenue (Rice University Project), | $ | 23,765,000 | $ | 23,765,000 | ||||
Laredo (Morgan Stanley Floater Certificates), | 17,815,000 | 17,815,000 | ||||||
Lower Neches Valley Authority Industrial Development Corp. Revenue (ExxonMobil Project), | 18,200,000 | 18,200,000 | ||||||
Tarrant County Cultural Education Facilities Finance Corp. Hospital Revenue (Baylor Healthcare System Project), Series C, | 2,600,000 | 2,600,000 | ||||||
Texas Tax & Revenue Anticipation Notes, | 43,000,000 | 43,389,281 | ||||||
University of Texas Permanent University | 25,000,000 | 25,000,000 | ||||||
University of Texas Revenue Refunding | 20,000,000 | 20,000,000 | ||||||
University of Texas Revenues (Financing Systems), Series B, | 7,000,000 | 7,000,000 | ||||||
0.040%, VRD | 20,000,000 | 20,000,000 | ||||||
218,929,281 | ||||||||
Utah—0.97% | ||||||||
Murray City Hospital Revenue (IHC Health Services, Inc.), | 2,090,000 | 2,090,000 | ||||||
Series D, | 8,170,000 | 8,170,000 | ||||||
Salt Lake City Corp. Tax & Revenue Anticipation Notes, | 19,000,000 | 19,083,194 | ||||||
29,343,194 |
47
UBS RMA Tax-Free Fund
Statement of net assets—December 31, 2014 (unaudited)
Security description | Face amount | Value | ||||||
Municipal bonds and notes—(concluded) | ||||||||
Virginia—1.88% | ||||||||
Fairfax County Economic Development Authority Revenue (Smithsonian Institution), Series A, | $ | 4,300,000 | $ | 4,300,000 | ||||
Hanover County Economic Development Authority Revenue Refunding (Bon Secours Health), Series D-2, | 22,470,000 | 22,470,000 | ||||||
Loudoun County Industrial Development Authority Revenue (Howard Hughes Medical), | 13,725,000 | 13,725,000 | ||||||
Series F, | 16,350,000 | 16,350,000 | ||||||
56,845,000 | ||||||||
Washington—2.26% | ||||||||
Central Puget Sound Regional Transportation Authority Sales & Use Tax Revenue (JP Morgan PUTTERs, Series 2643Z), | 5,000,000 | 5,000,000 | ||||||
King County Sewer Revenue (Junior Lien), | 23,000,000 | 23,000,000 | ||||||
Series B, | 21,950,000 | 21,950,000 | ||||||
Washington Health Care Facilities Authority Revenue (Multicare Health Systems), Series D, | 9,700,000 | 9,700,000 | ||||||
Washington Housing Finance Commission Nonprofit Revenue (YMCA Tacoma-Pierce County Project), 0.040%, VRD | 8,600,000 | 8,600,000 | ||||||
68,250,000 | ||||||||
Wisconsin—1.00% | ||||||||
Wisconsin Health & Educational Facilities Authority Revenue (Wheaton Franciscan Services), Series B, | 22,300,000 | 22,300,000 | ||||||
Wisconsin Health & Educational Facilities Authority Revenue (Wheaton Franciscan System), | 7,910,000 | 7,910,000 | ||||||
30,210,000 | ||||||||
Total municipal bonds and notes (cost—$2,657,707,194) | 2,657,707,194 |
48
UBS RMA Tax-Free Fund
Statement of net assets—December 31, 2014 (unaudited)
Security description | Face amount | Value | ||||||
Tax-exempt commercial paper—11.07% | ||||||||
California—1.03% | ||||||||
California State Health Facilities Financing (Stanford Hospital), Series B-2, Subseries 1, | $ | 8,000,000 | $ | 8,000,000 | ||||
Los Angeles County Capital Asset Lease, | 23,000,000 | 23,000,000 | ||||||
31,000,000 | ||||||||
Connecticut—0.47% | ||||||||
Yale University, | 14,060,000 | 14,060,000 | ||||||
Illinois—0.27% | ||||||||
Illinois Educational Facilities Authority Revenue, | 8,091,000 | 8,091,000 | ||||||
Maryland—0.82% | ||||||||
Johns Hopkins University, | 7,145,000 | 7,145,000 | ||||||
0.080%, due 04/06/15 | 17,700,000 | 17,700,000 | ||||||
24,845,000 | ||||||||
Minnesota—1.67% | ||||||||
Mayo Clinic, | 20,600,000 | 20,600,000 | ||||||
0.080%, due 04/07/15 | 30,000,000 | 30,000,000 | ||||||
50,600,000 | ||||||||
Missouri—0.50% | ||||||||
Curators University, | 15,000,000 | 15,000,000 | ||||||
New York—0.71% | ||||||||
Metropolitan Transportation Authority, | 11,500,000 | 11,500,000 | ||||||
New York State Power Authority, | 10,000,000 | 10,000,000 | ||||||
21,500,000 | ||||||||
North Carolina—0.27% | ||||||||
Duke University, | 8,000,000 | 8,000,000 |
49
UBS RMA Tax-Free Fund
Statement of net assets—December 31, 2014 (unaudited)
Security description | Face amount | Value | ||||||
Tax-exempt commercial paper—(concluded) | ||||||||
Tennessee—0.79% | ||||||||
Vanderbilt University, | $ | 12,000,000 | $ | 12,000,000 | ||||
0.120%, due 08/05/15 | 12,000,000 | 12,000,000 | ||||||
24,000,000 | ||||||||
Texas—1.61% | ||||||||
Dallas Area Rapid Transit, | 10,000,000 | 10,000,000 | ||||||
0.070%, due 02/12/15 | 6,000,000 | 6,000,000 | ||||||
0.090%, due 03/17/15 | 10,000,000 | 10,000,000 | ||||||
University of Texas, | 14,774,000 | 14,774,000 | ||||||
0.070%, due 02/03/15 | 8,000,000 | 8,000,000 | ||||||
48,774,000 | ||||||||
Virginia—2.19% | ||||||||
University of Virginia, | 17,750,000 | 17,750,000 | ||||||
0.060%, due 01/27/15 | 22,000,000 | 22,000,000 | ||||||
0.080%, due 02/04/15 | 11,600,000 | 11,600,000 | ||||||
0.070%, due 02/09/15 | 10,000,000 | 10,000,000 | ||||||
0.080%, due 04/07/15 | 4,700,000 | 4,700,000 | ||||||
66,050,000 | ||||||||
Washington—0.74% | ||||||||
University of Washington, | 7,500,000 | 7,500,000 | ||||||
0.100%, due 07/07/15 | 15,000,000 | 15,000,000 | ||||||
22,500,000 | ||||||||
Total tax-exempt commercial paper (cost—$334,420,000) |
| 334,420,000 | ||||||
Total investments (cost—$2,992,127,194 which approximates cost for federal income tax purposes)—99.02% | 2,992,127,194 | |||||||
Other assets in excess of liabilities—0.98% | 29,698,502 | |||||||
Net assets (applicable to 3,021,821,738 shares of common stock outstanding equivalent to $1.00 per share)—100.00% | $ | 3,021,825,696 |
50
UBS RMA Tax-Free Fund
Statement of net assets—December 31, 2014 (unaudited)
For a listing of defined portfolio acronyms that are used throughout the Statement of net assets, please refer to page 67.
Fair valuation summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2014 in valuing the Fund’s investments:
Description | Unadjusted quoted prices in active markets for identical investments (Level 1) | Other significant observable inputs (Level 2) | Unobservable (Level 3) | Total | ||||||||||||
Municipal bonds and notes | $ | — | $ | 2,657,707,194 | $ | — | $ | 2,657,707,194 | ||||||||
Tax-exempt commercial paper | — | 334,420,000 | — | 334,420,000 | ||||||||||||
Total | $ | — | $ | 2,992,127,194 | $ | — | $ | 2,992,127,194 |
At December 31, 2014, there were no transfers between Level 1 and Level 2.
Portfolio footnotes
1 | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities, which represent 2.11% of net assets as of December 31, 2014, 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). |
51
See accompanying notes to financial statements
UBS RMA California Municipal Money Fund
Statement of net assets—December 31, 2014 (unaudited)
Security description | Face amount | Value | ||||||
Municipal bonds and notes—89.27% | ||||||||
California Educational Facilities Authority Revenue (University of Southern California), Series A, (Barclays Capital Municipal Trust Receipts Series 11B), | $ | 2,500,000 | $ | 2,500,000 | ||||
California Educational Facilities Authority Revenue Refunding (Stanford University), | 6,900,000 | 6,900,000 | ||||||
Series L-6, | 12,400,000 | 12,400,000 | ||||||
California Health Facilities Financing Authority Revenue (Adventist Health Systems), | 8,000,000 | 8,000,000 | ||||||
Series B, | 11,200,000 | 11,200,000 | ||||||
California Health Facilities Financing Authority Revenue (Catholic Healthcare), Series C, | 16,200,000 | 16,200,000 | ||||||
California Health Facilities Financing Authority Revenue (Scripps Health), | 2,500,000 | 2,500,000 | ||||||
Series C, | | 18,700,000 3,000,000 | | | 18,700,000 3,000,000 | | ||
Series F, | 3,000,000 | 3,000,000 | ||||||
California Health Facilities Financing Authority Revenue (St. Joseph Health Systems), | 200,000 | 200,000 | ||||||
Series C, | 37,615,000 | 37,615,000 | ||||||
California Health Facilities Financing Authority Revenue Refunding (Stanford Hospital), Series B-1, | 16,100,000 | 16,100,000 | ||||||
California Infrastructure & Economic Development Bank Revenue (California Academy), Series E, | 7,050,000 | 7,050,000 |
52
UBS RMA California Municipal Money Fund
Statement of net assets—December 31, 2014 (unaudited)
Security description | Face amount | Value | ||||||
Municipal bonds and notes—(continued) | ||||||||
California Infrastructure & Economic Development Bank Revenue Refunding (Los Angeles County Museum of Natural History Foundation), Series B, | $ | 6,900,000 | $ | 6,900,000 | ||||
California Municipal Finance Authority Revenue (Chevron USA—Recovery Zone Bonds), Series B, | 12,750,000 | 12,750,000 | ||||||
California State Enterprise Development Authority Revenue (Robert Louis Stevenson School), | 7,650,000 | 7,650,000 | ||||||
California State Kindergarten, | 5,200,000 | 5,200,000 | ||||||
Series A2, | 6,900,000 | 6,900,000 | ||||||
Series A4, | 5,000,000 | 5,000,000 | ||||||
Series A5, | 500,000 | 500,000 | ||||||
Series B2, | 2,100,000 | 2,100,000 | ||||||
Series B3, | 5,500,000 | 5,500,000 | ||||||
California State Revenue Anticipation Notes, | 15,000,000 | 15,098,078 | ||||||
California Statewide Communities Development Authority (Robert Louis Stevenson), | 6,000,000 | 6,000,000 | ||||||
California Statewide Communities Development Authority Multi-Family Housing Revenue (Ridgeway Apartments), Series K, (FHLMC Insured), | 6,620,000 | 6,620,000 | ||||||
California Statewide Communities Development Authority Revenue (Health Facilities Community Hospital of Monterey Peninsula), Series B, | 4,000,000 | 4,000,000 | ||||||
California Statewide Communities Development Authority Revenue (University of San Diego), | 7,925,000 | 7,925,000 | ||||||
Antelope Valley-East Kern Water Agency, Series A-2, | 4,000,000 | 4,000,000 |
53
UBS RMA California Municipal Money Fund
Statement of net assets—December 31, 2014 (unaudited)
Security description | Face amount | Value | ||||||
Municipal bonds and notes—(continued) | ||||||||
Bay Area Toll Authority Toll Bridge Revenue (Citigroup Eagle Class A Certificates 20080056), | $ | 4,730,000 | $ | 4,730,000 | ||||
Bay Area Toll Authority Toll Bridge Revenue (San Francisco Bay Area), | 16,400,000 | 16,400,000 | ||||||
Series F, (Bank of America Austin Certificates, | 6,750,000 | 6,750,000 | ||||||
City of Riverside, Electric Revenue Refunding, Series A, | 12,740,000 | 12,740,000 | ||||||
City of Santa Clara, Electrical Revenue, Subseries B, | 30,135,000 | 30,135,000 | ||||||
Contra Costa County Multi-Family Housing Revenue Refunding (Delta Square Apartments Project), Series H, (FNMA Insured), | 10,655,000 | 10,655,000 | ||||||
County of Riverside Tax & Revenue Anticipation Notes, | 14,000,000 | 14,095,469 | ||||||
County of San Bernardino Tax & Revenue Anticipation Notes, Series A, | 5,000,000 | 5,046,286 | ||||||
County of Ventura Tax & Revenue Anticipation Notes, | 7,000,000 | 7,047,660 | ||||||
East Baton Rouge Parish Industrial Development Board, Inc. Revenue (ExxonMobil Project), Series B, | 800,000 | 800,000 | ||||||
East Baton Rouge Parish Industrial Development Board, Inc. Revenue Gulf Opportunity Zone (ExxonMobil Project), | 3,525,000 | 3,525,000 | ||||||
Hillsborough County School Board Certificates of Participation (Master Lease Program), Series C, | 800,000 | 800,000 | ||||||
Irvine Improvement Bond Act 1915 (Assessment District 94-13), | 1,535,000 | 1,535,000 | ||||||
Irvine Improvement Bond Act 1915 (Assessment District 97-16), | 6,268,000 | 6,268,000 |
54
UBS RMA California Municipal Money Fund
Statement of net assets—December 31, 2014 (unaudited)
Security description | Face amount | Value | ||||||
Municipal bonds and notes—(continued) | ||||||||
Irvine Improvement Bond Act 1915 (Reassessment District No. 85-7), Series A, | $ | 6,868,000 | $ | 6,868,000 | ||||
Irvine Improvement Bond Act 1915 Limited Obligation (Assessment District 93-14), | 17,037,000 | 17,037,000 | ||||||
Irvine Ranch Water District | 8,300,000 | 8,300,000 | ||||||
Irvine Unified School District Special Tax (Community Facilities District No. 09), Series A, | 14,700,000 | 14,700,000 | ||||||
Irvine Unified School District, | 12,927,000 | 12,927,000 | ||||||
Series B, | 10,000,000 | 10,000,000 | ||||||
Series C, | 9,100,000 | 9,100,000 | ||||||
Livermore Redevelopment Agency Multi-Family Revenue Refunding (Housing Livermore), Series A, (FNMA Insured), | 6,700,000 | 6,700,000 | ||||||
Los Angeles County Tax & Revenue Anticipation Notes, | 14,000,000 | 14,095,123 | ||||||
Los Angeles Tax & Revenue Anticipation Notes, | 14,000,000 | 14,093,100 | ||||||
Los Angeles Wastewater Systems Revenue Refunding, Series A, (Barclays Capital Municipal Trust Receipts Series 2W), | 3,750,000 | 3,750,000 | ||||||
Los Angeles Water and Power Revenue, | 2,300,000 | 2,300,000 | ||||||
Subseries B-5, | 10,400,000 | 10,400,000 | ||||||
Subseries B-8, | 5,200,000 | 5,200,000 | ||||||
Lower Neches Valley Texas Authority Industrial Development Corp., Revenue (ExxonMobil), | 4,100,000 | 4,100,000 |
55
UBS RMA California Municipal Money Fund
Statement of net assets—December 31, 2014 (unaudited)
Security description | Face amount | Value | ||||||
Municipal bonds and notes—(continued) | ||||||||
Manteca Redevelopment Agency Tax Allocation Refunding (Sub-Amended Merged Project), | $ | 3,235,000 | $ | 3,235,000 | ||||
Martinez Multi-Family Housing Revenue Refunding (Muirwood Garden Apartments), Series A, (FNMA Insured), | 6,800,000 | 6,800,000 | ||||||
Metropolitan Water District Southern California Waterworks Revenue (Citigroup Eagle Class A, Certificates 20070071), | 12,145,000 | 12,145,000 | ||||||
Metropolitan Water District Southern California Waterworks Revenue Refunding, Series A-2, | 11,800,000 | 11,800,000 | ||||||
Metropolitan Water District Southern California Waterworks Revenue, Series B-3, | 7,100,000 | 7,100,000 | ||||||
Modesto Water Revenue Certificates of Participation Refunding, Series A, | 18,555,000 | 18,555,000 | ||||||
New York City Municipal Finance Authority Water & Sewer Systems Revenue (Second General Fiscal 2008), Series BB-1, | 2,000,000 | 2,000,000 | ||||||
New York City Municipal Finance Authority Water & Sewer Systems Revenue (Second Generation Resolution), Series A, | 2,250,000 | 2,250,000 | ||||||
Orange County Apartment Development Revenue Refunding (Villas La Paz), Series F, (FNMA Insured), | 7,930,000 | 7,930,000 | ||||||
Orange County Sanitation District Certificates of Participation (JP Morgan PUTTERs, Series 2529Z), (AGM Insured), | 1,075,000 | 1,075,000 | ||||||
Orange County Water District Revenue Certificates of Participation, Series A, | 22,765,000 | 22,765,000 | ||||||
Sacramento Municipal Utility District, Series L, | 13,200,000 | 13,200,000 |
56
UBS RMA California Municipal Money Fund
Statement of net assets—December 31, 2014 (unaudited)
Security description | Face amount | Value | ||||||
Municipal bonds and notes—(continued) | ||||||||
San Bernardino County Multi-Family Revenue Refunding (Housing Evergreen Apartments), Series A, (FNMA Insured), | $ | 16,600,000 | $ | 16,600,000 | ||||
San Bernardino County Multi-Family Revenue Refunding (Housing Mortgage—Mountain View), Series A, (FNMA Insured), | 3,650,000 | 3,650,000 | ||||||
San Diego County Regional Transportation Commission Sales Tax Revenue (Limited Tax), | 19,530,000 | 19,530,000 | ||||||
Series B, | 15,250,000 | 15,250,000 | ||||||
San Francisco City and County Airports Community International Airport Revenue Refunding, Second Series 36C, | 5,000,000 | 5,000,000 | ||||||
Santa Clara County Financing Authority Revenue (El Camino Hospital), Series A, | 8,800,000 | 8,800,000 | ||||||
Santa Clara Valley Transportation Authority Sales Tax Revenue Refunding, | 3,980,000 | 3,980,000 | ||||||
Series B, | 33,150,000 | 33,150,000 | ||||||
Series C, | 6,755,000 | 6,755,000 | ||||||
Syracuse Industrial Development Agency Civic Facility Revenue (Syracuse University Project), Series A-2, | 6,000,000 | 6,000,000 | ||||||
Torrance Revenue (Torrance Memorial Medical Center), Series B, | 7,500,000 | 7,500,000 | ||||||
Valdez Marine Terminal Revenue Refunding (Exxon Pipeline Co. Project), Series B, | 600,000 | 600,000 | ||||||
West Covina Public Financing Authority Lease Revenue (Golf Course Project), Series B, | 3,880,000 | 3,880,000 |
57
UBS RMA California Municipal Money Fund
Statement of net assets—December 31, 2014 (unaudited)
Security description | Face amount | Value | ||||||
Municipal bonds and notes—(concluded) | ||||||||
West Covina Public Financing Authority Lease Revenue, Series A, | $ | 5,885,000 | $ | 5,885,000 | ||||
Total municipal bonds and notes (cost—$747,040,716) |
| 747,040,716 | ||||||
Tax-exempt commercial paper—10.09% | ||||||||
California Education Facility Authority, | 11,721,000 | 11,721,000 | ||||||
California Health Facilities Financing Authority Revenue Refunding (Stanford Hospital), | 10,050,000 | 10,050,000 | ||||||
Series B-2, Subseries 2, | 8,000,000 | 8,000,000 | ||||||
Los Angeles County Capital Asset Lease, | 5,400,000 | 5,400,000 | ||||||
0.070%, due 03/04/15 | 12,000,000 | 12,000,000 | ||||||
Los Angeles County Department of Water & Power, | 5,000,000 | 5,000,000 | ||||||
0.070%, due 03/11/15 | 10,000,000 | 10,000,000 | ||||||
Sacramento Municipal Utility District, | 10,000,000 | 10,000,000 | ||||||
San Diego County Water Authority, | 6,025,000 | 6,025,000 | ||||||
0.080%, due 03/12/15 | 6,250,000 | 6,250,000 | ||||||
Total tax-exempt commercial paper (cost—$84,446,000) |
| 84,446,000 | ||||||
Total investments (cost—$831,486,716 which approximates cost for federal income tax purposes)—99.36% | 831,486,716 | |||||||
Other assets in excess of liabilities—0.64% | 5,327,220 | |||||||
Net assets (applicable to 836,788,976 shares of beneficial interest outstanding equivalent to $1.00 per share)—100.00% | $ | 836,813,936 |
58
UBS RMA California Municipal Money Fund
Statement of net assets—December 31, 2014 (unaudited)
For a listing of defined portfolio acronyms that are used throughout the Statement of net assets, please refer to page 67.
Fair valuation summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2014 in valuing the Fund’s investments:
Description | Unadjusted quoted prices in active markets for identical investments (Level 1) | Other significant observable inputs (Level 2) | Unobservable (Level 3) | Total | ||||||||||||
Municipal bonds and notes | $ | — | $ | 747,040,716 | $ | — | $ | 747,040,716 | ||||||||
Tax-exempt commercial paper | — | 84,446,000 | — | 84,446,000 | ||||||||||||
Total | $ | — | $ | 831,486,716 | $ | — | $ | 831,486,716 |
At December 31, 2014, there were no transfers between Level 1 and Level 2.
Portfolio footnotes
1 | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities, which represent 3.70% of net assets as of December 31, 2014, 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). |
59
See accompanying notes to financial statements
UBS RMA New York Municipal Money Fund
Statement of net assets—December 31, 2014 (unaudited)
Security description | Face amount | Value | ||||||
Municipal bonds and notes—92.73% | ||||||||
New York State Dormitory Authority Revenue (Columbia University), Series B, | $ | 9,500,000 | $ | 9,500,000 | ||||
New York State Dormitory Authority Revenue Non-State Supported Debt (Blythedale Childrens Hospital), | 7,750,000 | 7,750,000 | ||||||
New York State Dormitory Authority Revenue Non-State Supported Debt (Catholic Health System), | 2,220,000 | 2,220,000 | ||||||
New York State Dormitory Authority Revenue Non-State Supported Debt (Columbia University), Series A, | 4,200,000 | 4,200,000 | ||||||
New York State Dormitory Authority Revenue Non-State Supported Debt (Local Secured), Series A, | 8,695,000 | 8,695,000 | ||||||
New York State Dormitory Authority Revenue Non-State Supported Debt (Northern Westchester Association), | 7,155,000 | 7,155,000 | ||||||
New York State Dormitory Authority Revenue Non-State Supported Debt (Rockefeller University), | 9,200,000 | 9,200,000 | ||||||
Series A-2, | 5,800,000 | 5,800,000 | ||||||
New York State Dormitory Authority Revenue Non-State Supported Debt (Royal), Series A, (FNMA Insured), | 8,280,000 | 8,280,000 | ||||||
New York State Dormitory Authority Revenue Non-State Supported Debt (Senior Community, Inc.), | 2,600,000 | 2,600,000 | ||||||
New York State Dormitory Authority Revenue State Supported Debt (City University), | 2,090,000 | 2,090,000 | ||||||
Series D, | 16,300,000 | 16,300,000 | ||||||
New York State Dormitory Authority Revenue State Supported Debt (Cornell University), Series A, | 11,040,000 | 11,040,000 |
60
UBS RMA New York Municipal Money Fund
Statement of net assets—December 31, 2014 (unaudited)
Security description | Face amount | Value | ||||||
Municipal bonds and notes—(continued) | ||||||||
New York State Dormitory Authority Revenue State Supported Debt (New York Public Library), Series A, | $ | 900,000 | $ | 900,000 | ||||
New York State Dormitory Authority Revenue State Supported Debt (University of Rochester), Series B, | 14,435,000 | 14,435,000 | ||||||
New York State Environmental Facilities Corp. State Personal Income Tax Revenue (JP Morgan PUTTERs, Series 2666), | 3,185,000 | 3,185,000 | ||||||
New York State Housing Finance Agency (Riverside Center 2 Housing), Series A-2, | 5,000,000 | 5,000,000 | ||||||
New York State Housing Finance Agency Affordable Housing Revenue (Housing Bowery Place I), Series A, (FHLMC Insured), | 23,600,000 | 23,600,000 | ||||||
New York State Housing Finance Agency Revenue (20 River Terrace Housing), Series A, (FNMA Insured), | 8,700,000 | 8,700,000 | ||||||
New York State Housing Finance Agency Revenue (316 11th Avenue Housing), Series A, (FNMA Insured), 0.020%, VRD | 9,340,000 | 9,340,000 | ||||||
New York State Housing Finance Agency Revenue (Dock Street), Series A, | 4,000,000 | 4,000,000 | ||||||
New York State Housing Finance Agency Revenue (Gotham West Housing), Series A-2, | 21,715,000 | 21,715,000 | ||||||
New York State Housing Finance Agency Revenue (North End), Series A, (FNMA Insured), | 9,600,000 | 9,600,000 | ||||||
New York State Urban Development Corp. Revenue Refunding (Service Contract), Series A-5, | 4,000,000 | 4,000,000 | ||||||
New York State Urban Development Corp. Revenue State Personal Income Tax, Series B, (Barclays Capital Municipal Trust Receipts, Series 6W), | 6,835,000 | 6,835,000 | ||||||
Amherst Development Corp. Student Housing Facility Revenue (UBF Faculty-Student Housing Corp.), Series B, | 5,500,000 | 5,500,000 |
61
UBS RMA New York Municipal Money Fund
Statement of net assets—December 31, 2014 (unaudited)
Security description | Face amount | Value | ||||||
Municipal bonds and notes—(continued) | ||||||||
Buffalo Municipal Water Finance Authority Water Systems Revenue Refunding, | $ | 23,865,000 | $ | 23,865,000 | ||||
Charlotte-Mecklenburg Hospital Authority Health Care Systems Revenue Refunding (Carolinas Healthcare), Series H, | 1,500,000 | 1,500,000 | ||||||
East Baton Rouge Parish Industrial Development Board, Inc. Revenue (ExxonMobil Project), Series B, | 2,200,000 | 2,200,000 | ||||||
Erie County Fiscal Stability Authority Bond Anticipation Notes, Series A, | 7,150,000 | 7,195,164 | ||||||
Erie County Industrial Development Agency Civic Facilities Revenue (Our Lady of Victory Corp.), Series A, | 8,745,000 | 8,745,000 | ||||||
Harris County Cultural Education Facilities Finance Corp. Revenue (Methodist Hospital), | 1,500,000 | 1,500,000 | ||||||
Subseries C-2, | 5,670,000 | 5,670,000 | ||||||
Harris County Health Facilities Development Corp. Revenue Refunding (Methodist Hospital Systems), Series A-2, | 140,000 | 140,000 | ||||||
Indiana Finance Authority Environmental Revenue Refunding (Duke Energy Industrial Project), Series A-5, | 2,800,000 | 2,800,000 | ||||||
Livingston County Industrial Development Agency Civic Facilities Revenue Refunding (Red Jacket/Nicholas), Series A, | 1,183,000 | 1,183,000 | ||||||
Long Island Power Authority, | 23,200,000 | 23,200,000 | ||||||
Series D, | 600,000 | 600,000 |
62
UBS RMA New York Municipal Money Fund
Statement of net assets—December 31, 2014 (unaudited)
Security description | Face amount | Value | ||||||
Municipal bonds and notes—(continued) | ||||||||
Lower Neches Valley Authority Industrial Development Corp. Revenue Refunding (ExxonMobil Project), | $ | 6,150,000 | $ | 6,150,000 | ||||
Metropolitan Transportation Authority Revenue, Subseries E-3, | 11,300,000 | 11,300,000 | ||||||
Miller Place Union Free School District Tax Anticipation Notes, | 11,000,000 | 11,045,203 | ||||||
Missouri State Health & Educational Facilities Authority Educational Facilities Revenue (Washington University), Series C, | 200,000 | 200,000 | ||||||
Nassau Health Care Corp. Revenue, Series B-1, | 2,400,000 | 2,400,000 | ||||||
New York City Health & Hospital Corp. Revenue (Health Systems), Series C, | 900,000 | 900,000 | ||||||
New York City Housing Development Corp. Multi-Family Mortgage Revenue (201 Pearl Street Development), Series A, (FNMA Insured), | 9,000,000 | 9,000,000 | ||||||
New York City Housing Development Corp. Multi-Family Mortgage Revenue (Marseilles Apartments), Series A, | 9,335,000 | 9,335,000 | ||||||
New York City Housing Development Corp. Multi-Family Mortgage Revenue (The Crest), Series A, | 9,755,000 | 9,755,000 | ||||||
New York City Housing Development Corp. Multi-Family Rental Housing Revenue (2 Gold Street), Series A, (FNMA Insured), | 9,400,000 | 9,400,000 | ||||||
New York City Housing Development Corp. Multi-Family Rental Housing Revenue (Royal Properties), Series A, (FNMA Insured), | 9,000,000 | 9,000,000 | ||||||
New York City Municipal Finance Authority Water & Sewer Systems Revenue (Second General Fiscal 2008), | 2,720,000 | 2,720,000 | ||||||
Series BB-5, | 15,710,000 | 15,710,000 |
63
UBS RMA New York Municipal Money Fund
Statement of net assets—December 31, 2014 (unaudited)
Security description | Face amount | Value | ||||||
Municipal bonds and notes—(continued) | ||||||||
New York City Municipal Finance Authority Water & Sewer Systems Revenue (Second General Resolution), | $ | 2,740,000 | $ | 2,740,000 | ||||
Series B-4, | 10,695,000 | 10,695,000 | ||||||
Series CC-1, | 10,800,000 | 10,800,000 | ||||||
New York City Municipal Water Finance Authority Water & Sewer Systems Revenue, Series D, (JP Morgan PUTTERs, Series 3240), | 1,600,000 | 1,600,000 | ||||||
New York City Transitional Finance Authority Revenue (Future Tax Secured), | 14,900,000 | 14,900,000 | ||||||
0.020%, VRD | 14,100,000 | 14,100,000 | ||||||
Subseries D-4, | 6,315,000 | 6,315,000 | ||||||
New York City Trust for Cultural Resources Revenue (Metropolitan Museum of Art), Series A1, | 11,900,000 | 11,900,000 | ||||||
New York City Trust for Cultural Resources Revenue (WNYC Radio, Inc.), | 7,145,000 | 7,145,000 | ||||||
New York City, | 4,000,000 | 4,000,000 | ||||||
Subseries G-4, | 8,400,000 | 8,400,000 | ||||||
Subseries G-7, | 8,000,000 | 8,000,000 | ||||||
Subseries L-3, | 6,000,000 | 6,000,000 | ||||||
Subseries L-4, | 13,445,000 | 13,445,000 | ||||||
Onondaga County Industrial Development Agency (Syracuse University Project), Series B, | 14,660,000 | 14,660,000 |
64
UBS RMA New York Municipal Money Fund
Statement of net assets—December 31, 2014 (unaudited)
Security description | Face amount | Value | ||||||
Municipal bonds and notes—(continued) | ||||||||
Onondaga County Industrial Development Agency Civic Facilities Revenue (Syracuse Home Association Project), | $ | 5,445,000 | $ | 5,445,000 | ||||
Port Washington Union Free School District Tax Anticipation Notes, | 11,000,000 | 11,019,590 | ||||||
Rochester Health Care Facilities Revenue (Mayo Clinic), Series B, | 5,500,000 | 5,500,000 | ||||||
Rockville Centre Union Free School District Tax Anticipation Notes, | 10,000,000 | 10,042,893 | ||||||
Sacramento Municipal Utility District, Series L, | 10,000,000 | 10,000,000 | ||||||
Saratoga County Capital Resource Corp. Revenue (Saratoga Hospital Project), | 3,300,000 | 3,300,000 | ||||||
Sewanhaka Central High School District of Elmont Bond Anticipation Notes, | 11,000,000 | 11,049,676 | ||||||
Syracuse Industrial Development Agency Civic Facility Revenue (Syracuse University Project), | 800,000 | 800,000 | ||||||
Series A-2, | 9,800,000 | 9,800,000 | ||||||
Syracuse Industrial Development Agency Civic Facility Revenue (Syracuse University), Series A, | 4,000,000 | 4,000,000 | ||||||
Tompkins County Industrial Development Agency Revenue (Care Community Kendal Ithaca), Series B, | 3,000,000 | 3,000,000 | ||||||
Tompkins County Industrial Development Agency Revenue Civic Facilities (Cornell University), Series A, | 16,610,000 | 16,610,000 | ||||||
Town of East Hampton Bond Anticipation Notes, | 12,034,858 | 12,099,319 | ||||||
Triborough Bridge & Tunnel Authority Revenue, | 1,175,000 | 1,175,000 |
65
UBS RMA New York Municipal Money Fund
Statement of net assets—December 31, 2014 (unaudited)
Security description | Face amount | Value | ||||||
Municipal bonds and notes—(concluded) | ||||||||
Triborough Bridge & Tunnel Authority Revenue—(concluded) | ||||||||
Series B-2C, | $ | 17,420,000 | $ | 17,420,000 | ||||
Series B-3, | 16,095,000 | 16,095,000 | ||||||
University of Texas Permanent University (Funding System), Series A, | 14,200,000 | 14,200,000 | ||||||
University of Texas Revenue Refunding (Financing Systems), Series B, | 5,400,000 | 5,400,000 | ||||||
University of Texas Revenues (Financing Systems), Series B, | 1,200,000 | 1,200,000 | ||||||
Washington Health Care Facilities Authority Revenue (Multicare Health Systems), Series D, | 5,045,000 | 5,045,000 | ||||||
Total municipal bonds and notes (cost—$685,054,845) |
| 685,054,845 | ||||||
Tax-exempt commercial paper—7.23% | ||||||||
New York State Dormitory Authority (Columbia University), | 6,400,000 | 6,400,000 | ||||||
New York State Power Authority | 5,000,000 | 5,000,000 | ||||||
0.080%, due 01/13/15 | 5,000,000 | 5,000,000 | ||||||
0.060%, due 01/14/15 | 15,000,000 | 15,000,000 | ||||||
Metropolitan Transportation Authority, | 16,000,000 | 16,000,000 | ||||||
0.090%, due 02/12/15 | 6,000,000 | 6,000,000 | ||||||
Total tax-exempt commercial paper (cost—$53,400,000) |
| 53,400,000 | ||||||
Total investments (cost—$738,454,845 which approximates cost for federal income tax purposes)—99.96% | 738,454,845 | |||||||
Other assets in excess of liabilities—0.04% | 268,965 | |||||||
Net assets (applicable to 738,690,774 shares of beneficial interest outstanding equivalent to $1.00 per share)—100.00% | $ | 738,723,810 |
66
UBS RMA New York Municipal Money Fund
Statement of net assets—December 31, 2014 (unaudited)
Fair valuation summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2014 in valuing the Fund’s investments:
Description | Unadjusted quoted prices in active markets for identical investments (Level 1) | Other significant observable inputs (Level 2) | Unobservable (Level 3) | Total | ||||||||||||
Municipal bonds and notes | $ | — | $ | 685,054,845 | $ | — | $ | 685,054,845 | ||||||||
Tax-exempt commercial paper | — | 53,400,000 | — | 53,400,000 | ||||||||||||
Total | $ | — | $ | 738,454,845 | $ | — | $ | 738,454,845 |
At December 31, 2014, there were no transfers between Level 1 and Level 2.
Portfolio footnotes
1 | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities, which represent 1.57% of net assets as of December 31, 2014, 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). |
Portfolio acronyms
AGM | Assured Guaranty Municipal Corporation | |
CCAO | County Commissioners Association of Ohio | |
FGIC | Financial Guaranty Insurance Company | |
FHLMC | Federal Home Loan Mortgage Corporation | |
FNMA | Federal National Mortgage Association | |
NATL-RE | National Reinsurance | |
PUTTERs | Puttable Tax-Exempt Receipts | |
ROCS | Reset Option Certificates | |
SCSDE | South Carolina School District Enhancement | |
VRD | Variable rate demand notes are payable on demand. The interest rates shown are the current rates as of December 31, 2014 and reset periodically. |
67
See accompanying notes to financial statements
UBS RMA
Statement of operations
For the six months ended December 31, 2014 (unaudited) | ||||||||
Money Market | U.S. Government Portfolio | |||||||
Investment income: | ||||||||
Interest | $ | 3,970,396 | $ | 697,374 | ||||
Expenses: | ||||||||
Investment advisory and administration fees | 9,303,500 | 3,246,232 | ||||||
Service fees | 3,817,892 | 1,299,331 | ||||||
Transfer agency and related services fees | 789,729 | 73,574 | ||||||
Custody and accounting fees | 246,546 | 83,908 | ||||||
Professional fees | 72,709 | 69,318 | ||||||
Insurance fees | 88,424 | 25,473 | ||||||
State registration fees | 55,381 | 33,921 | ||||||
Directors’/Trustees’ fees | 53,978 | 22,913 | ||||||
Reports and notices to shareholders | 53,151 | 7,945 | ||||||
Other expenses | 46,430 | 20,970 | ||||||
14,527,740 | 4,883,585 | |||||||
Fee waivers and/or expense reimbursements by investment advisor/administrator/distributor | (10,812,124 | ) | (4,272,919 | ) | ||||
Net expenses | 3,715,616 | 610,666 | ||||||
Net investment income | 254,780 | 86,708 | ||||||
Net realized gain | 12,178 | 2,459 | ||||||
Net increase in net assets resulting from operations | $ | 266,958 | $ | 89,167 |
68
See accompanying notes to financial statements
For the six months ended December 31, 2014 (unaudited) | ||||||||||
Tax-Free Fund | California Municipal Money Fund | New York Municipal Money Fund | ||||||||
$ | 814,444 | $ | 191,937 | $ | 193,384 | |||||
5,780,645 | 1,718,253 | 1,520,211 | ||||||||
2,238,482 | 610,236 | 530,359 | ||||||||
476,626 | 86,041 | 72,385 | ||||||||
144,556 | 39,409 | 34,250 | ||||||||
71,079 | 64,339 | 64,137 | ||||||||
40,778 | 10,412 | 8,695 | ||||||||
35,199 | 16,040 | 14,807 | ||||||||
32,550 | 14,985 | 14,239 | ||||||||
35,921 | 7,975 | 7,025 | ||||||||
23,916 | 15,046 | 14,636 | ||||||||
8,879,752 | 2,582,736 | 2,280,744 | ||||||||
(8,214,686 | ) | (2,431,519 | ) | (2,122,750 | ) | |||||
665,066 | 151,217 | 157,994 | ||||||||
149,378 | 40,720 | 35,390 | ||||||||
99 | 12,700 | 20,632 | ||||||||
$ | 149,477 | $ | 53,420 | $ | 56,022 |
69
See accompanying notes to financial statements
UBS RMA
Statement of changes in net assets
For the six months ended December 31, 2014 (unaudited) | For the year ended June 30, 2014 | |||||||
UBS RMA Money Market Portfolio | ||||||||
From operations: | ||||||||
Net investment income | $ | 254,780 | $ | 708,772 | ||||
Net realized gain | 12,178 | 1,801 | ||||||
Net increase in net assets resulting from operations | 266,958 | 710,573 | ||||||
Dividends and distributions to shareholders from: | ||||||||
Net investment income | (254,780 | ) | (708,772 | ) | ||||
Net realized gains | (1,801 | ) | (136,747 | ) | ||||
Total dividends and distributions to shareholders | (256,581 | ) | (845,519 | ) | ||||
Net decrease in net assets from capital share transactions | (49,013,972 | ) | (5,918,915,903 | ) | ||||
Cash payment from investment advisor | — | 1,432,012 | ||||||
Net decrease in net assets | (49,003,595 | ) | (5,917,618,837 | ) | ||||
Net assets: | ||||||||
Beginning of period | 5,163,758,650 | 11,081,377,487 | ||||||
End of period | $ | 5,114,755,055 | $ | 5,163,758,650 | ||||
Accumulated undistributed net investment income | $ | — | $ | — | ||||
UBS RMA U.S. Government Portfolio | ||||||||
From operations: | ||||||||
Net investment income | $ | 86,708 | $ | 209,817 | ||||
Net realized gain | 2,459 | 15,142 | ||||||
Net increase in net assets resulting from operations | 89,167 | 224,959 | ||||||
Dividends and distributions to shareholders from: | ||||||||
Net investment income | (86,708 | ) | (209,817 | ) | ||||
Net realized gains | (15,273 | ) | (29,106 | ) | ||||
Total dividends and distributions to shareholders | (101,981 | ) | (238,923 | ) | ||||
Net increase (decrease) in net assets from capital share transactions | 256,475,649 | (961,168,363 | ) | |||||
Cash payment from investment advisor | — | 555,987 | ||||||
Net increase (decrease) in net assets | 256,462,835 | (960,626,340 | ) | |||||
Net assets: | ||||||||
Beginning of period | 1,665,094,001 | 2,625,720,341 | ||||||
End of period | $ | 1,921,556,836 | $ | 1,665,094,001 | ||||
Accumulated undistributed net investment income | $ | — | $ | — |
70
See accompanying notes to financial statements
UBS RMA
Statement of changes in net assets
For the six months ended December 31, 2014 (unaudited) | For the year ended June 30, 2014 | |||||||
UBS RMA Tax-Free Fund | ||||||||
From operations: | ||||||||
Net investment income | $ | 149,378 | $ | 324,851 | ||||
Net realized gain | 99 | 63,373 | ||||||
Net increase in net assets resulting from operations | 149,477 | 388,224 | ||||||
Dividends and distributions to shareholders from: | ||||||||
Net investment income | (149,378 | ) | (324,851 | ) | ||||
Net realized gains | (63,472 | ) | — | |||||
Total dividends and distributions to shareholders | (212,850 | ) | (324,851 | ) | ||||
Net increase (decrease) in net assets from capital share transactions | 68,499,861 | (307,470,320 | ) | |||||
Cash payment from investment advisor | — | 739,197 | ||||||
Net increase (decrease) in net assets | 68,436,488 | (306,667,750 | ) | |||||
Net assets: | ||||||||
Beginning of period | 2,953,389,208 | 3,260,056,958 | ||||||
End of period | $ | 3,021,825,696 | $ | 2,953,389,208 | ||||
Accumulated undistributed net investment income | $ | — | $ | — | ||||
UBS RMA California Municipal Money Fund | ||||||||
From operations: | ||||||||
Net investment income | $ | 40,720 | $ | 82,742 | ||||
Net realized gain | 12,700 | 31,401 | ||||||
Net increase in net assets resulting from operations | 53,420 | 114,143 | ||||||
Dividends and distributions to shareholders from: | ||||||||
Net investment income | (40,720 | ) | (82,742 | ) | ||||
Net realized gains | (44,102 | ) | — | |||||
Total dividends and distributions to shareholders | (84,822 | ) | (82,742 | ) | ||||
Net increase (decrease) in net assets from beneficial interest transactions | 103,119,201 | (88,419,567 | ) | |||||
Cash payment from investment advisor | — | 438,085 | ||||||
Net increase (decrease) in net assets | 103,087,799 | (87,950,081 | ) | |||||
Net assets: | ||||||||
Beginning of period | 733,726,137 | 821,676,218 | ||||||
End of period | $ | 836,813,936 | $ | 733,726,137 | ||||
Accumulated undistributed net investment income | $ | — | $ | — |
71
See accompanying notes to financial statements
UBS RMA
Statement of changes in net assets
For the six months ended December 31, 2014 (unaudited) | For the year ended June 30, 2014 | |||||||
UBS RMA New York Municipal Money Fund | ||||||||
From operations: | ||||||||
Net investment income | $ | 35,390 | $ | 68,987 | ||||
Net realized gain | 20,632 | — | ||||||
Net increase in net assets resulting from operations | 56,022 | 68,987 | ||||||
Dividends and distributions to shareholders from: | ||||||||
Net investment income | (35,390 | ) | (68,987 | ) | ||||
Net realized gains | (19,026 | ) | — | |||||
Total dividends and distributions to shareholders | (54,416 | ) | (68,987 | ) | ||||
Net increase (decrease) in net assets from beneficial interest transactions | 86,369,205 | (39,640,924 | ) | |||||
Cash payment from investment advisor | — | 153,594 | ||||||
Net increase (decrease) in net assets | 86,370,811 | (39,487,330 | ) | |||||
Net assets: | ||||||||
Beginning of period | 652,352,999 | 691,840,329 | ||||||
End of period | $ | 738,723,810 | $ | 652,352,999 | ||||
Accumulated undistributed net investment income | $ | — | $ | — |
72
See accompanying notes to financial statements
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73
UBS RMA Money Market Portfolio
Financial highlights
Selected data for a share of common stock outstanding throughout each period is presented below:
Six months ended December 31, 2014 (unaudited) | ||||
Net asset value, beginning of period | $1.00 | |||
Net investment income | 0.000 | 2 | ||
Dividends from net investment income | (0.000 | )2 | ||
Distributions from net realized gains | (0.000 | )2 | ||
Total dividends and distributions | (0.000 | )2 | ||
Net asset value, end of period | $1.00 | |||
Total investment return3 | 0.01 | % | ||
Ratios to average net assets: | ||||
Expenses before fee waivers and/or expense reimbursements | 0.57 | %5 | ||
Expenses after fee waivers and/or expense reimbursements | 0.15 | %5 | ||
Net investment income | 0.01 | %5 | ||
Supplemental data: | ||||
Net assets, end of period (in millions) | $5,115 |
1 | The investment advisory and administration functions for the Portfolio were transferred from UBS Financial Services Inc. to UBS Global Asset Management (Americas) Inc. (“UBS Global AM”) on March 1, 2011. As a result, the Portfolio no longer has a sub-advisor/sub-administrator but is managed directly by UBS Global AM. |
2 | Amount represents less than $0.0005 per share. |
3 | Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and other distributions, if any, at net asset value on the payable dates, and a sale at net asset value on the last day of each period reported. Total investment return for the period of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions. |
4 | Payment from investment advisor as disclosed on page 90 had no impact on the Portfolio’s total investment return and represents less than $0.0005 per share. |
5 | Annualized. |
74
See accompanying notes to financial statements
Years ended June 30, | ||||||||||||||||||
2014 | 2013 | 2012 | 20111 | 2010 | ||||||||||||||
$1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||
0.000 | 2 | 0.000 | 2 | 0.000 | 2 | 0.000 | 2 | 0.000 | 2 | |||||||||
(0.000 | )2 | (0.000 | )2 | (0.000 | )2 | (0.000 | )2 | (0.000 | )2 | |||||||||
(0.000 | )2 | (0.000 | )2 | — | (0.000 | )2 | (0.000 | )2 | ||||||||||
(0.000 | )2 | (0.000 | )2 | (0.000 | )2 | (0.000 | )2 | (0.000 | )2 | |||||||||
$1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||
0.01 | %4 | 0.01 | % | 0.01 | % | 0.01 | % | 0.02 | % | |||||||||
0.56 | % | 0.55 | % | 0.55 | % | 0.64 | % | 0.70 | % | |||||||||
0.15 | % | 0.21 | % | 0.17 | % | 0.26 | % | 0.26 | % | |||||||||
0.01 | % | 0.01 | % | 0.01 | % | 0.01 | % | 0.01 | % | |||||||||
$5,164 | $11,081 | $13,032 | $15,379 | $14,392 |
75
See accompanying notes to financial statements
UBS RMA U.S. Government Portfolio
Financial highlights
Selected data for a share of common stock outstanding throughout each period is presented below:
Six months ended December 31, 2014 (unaudited) | ||||
Net asset value, beginning of period | $1.00 | |||
Net investment income | 0.000 | 2 | ||
Dividends from net investment income | (0.000 | )2 | ||
Distributions from net realized gains | (0.000 | )2 | ||
Total dividends and distributions | (0.000 | )2 | ||
Net asset value, end of period | $1.00 | |||
Total investment return3 | 0.01 | % | ||
Ratios to average net assets: | ||||
Expenses before fee waivers and/or expense reimbursements | 0.56 | %5 | ||
Expenses after fee waivers and/or expense reimbursements | 0.07 | %5 | ||
Net investment income | 0.01 | %5 | ||
Supplemental data: | ||||
Net assets, end of period (in millions) | $1,922 |
1 | The investment advisory and administration functions for the Portfolio were transferred from UBS Financial Services Inc. to UBS Global Asset Management (Americas) Inc. (“UBS Global AM”) on March 1, 2011. As a result, the Portfolio no longer has a sub-advisor/sub-administrator but is managed directly by UBS Global AM. |
2 | Amount represents less than $0.0005 per share. |
3 | Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and other distributions, if any, at net asset value on the payable dates, and a sale at net asset value on the last day of each period reported. Total investment return for the period of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions. |
4 | Payment from investment advisor as disclosed on page 90 had no impact on the Portfolio’s total investment return and represents less than $0.0005 per share. |
5 | Annualized. |
76
See accompanying notes to financial statements
Years ended June 30, | ||||||||||||||||||
2014 | 2013 | 2012 | 20111 | 2010 | ||||||||||||||
$1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||
0.000 | 2 | 0.000 | 2 | 0.000 | 2 | 0.000 | 2 | 0.000 | 2 | |||||||||
(0.000 | )2 | (0.000 | )2 | (0.000 | )2 | (0.000 | )2 | (0.000 | )2 | |||||||||
(0.000 | )2 | (0.000 | )2 | (0.000 | )2 | (0.000 | )2 | (0.000 | )2 | |||||||||
(0.000 | )2 | (0.000 | )2 | (0.000 | )2 | (0.000 | )2 | (0.000 | )2 | |||||||||
$1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||
0.01 | %4 | 0.01 | % | 0.01 | % | 0.01 | % | 0.02 | % | |||||||||
0.55 | % | 0.54 | % | 0.53 | % | 0.54 | % | 0.55 | % | |||||||||
0.07 | % | 0.14 | % | 0.10 | % | 0.19 | % | 0.22 | % | |||||||||
0.01 | % | 0.01 | % | 0.01 | % | 0.01 | % | 0.01 | % | |||||||||
$1,665 | $2,626 | $3,782 | $3,644 | $3,626 |
77
See accompanying notes to financial statements
UBS RMA Tax-Free Fund
Financial highlights
Selected data for a share of common stock outstanding throughout each period is presented below:
Six months ended December 31, 2014 (unaudited) | ||||
Net asset value, beginning of period | $1.00 | |||
Net investment income | 0.000 | 2 | ||
Dividends from net investment income | (0.000 | )2 | ||
Distributions from net realized gains | (0.000 | )2 | ||
Total dividends and distributions | (0.000 | )2 | ||
Net asset value, end of period | $1.00 | |||
Total investment return3 | 0.01 | % | ||
Ratios to average net assets: | ||||
Expenses before fee waivers and/or expense reimbursements | 0.60 | %5 | ||
Expenses after fee waivers and/or expense reimbursements | 0.04 | %5 | ||
Net investment income | 0.01 | %5 | ||
Supplemental data: | ||||
Net assets, end of period (in millions) | $3,022 |
1 | The investment advisory and administration functions for the Fund were transferred from UBS Financial Services Inc. to UBS Global Asset Management (Americas) Inc. (“UBS Global AM”) on March 1, 2011. As a result, the Fund no longer has a sub-advisor/sub-administrator but is managed directly by UBS Global AM. |
2 | Amount represents less than $0.0005 per share. |
3 | Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and other distributions, if any, at net asset value on the payable dates, and a sale at net asset value on the last day of each period reported. Total investment return for the period of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder could pay on Fund distributions. |
4 | Payment from investment advisor as disclosed on page 90 had no impact on the Fund’s total investment return and represents less than $0.0005 per share. |
5 | Annualized. |
78
See accompanying notes to financial statements
Years ended June 30, | ||||||||||||||||||
2014 | 2013 | 2012 | 20111 | 2010 | ||||||||||||||
$1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||
0.000 | 2 | 0.000 | 2 | 0.000 | 2 | 0.000 | 2 | 0.000 | 2 | |||||||||
(0.000 | )2 | (0.000 | )2 | (0.000 | )2 | (0.000 | )2 | (0.000 | )2 | |||||||||
— | (0.000 | )2 | (0.000 | )2 | (0.000 | )2 | (0.000 | )2 | ||||||||||
(0.000 | )2 | (0.000 | )2 | (0.000 | )2 | (0.000 | )2 | (0.000 | )2 | |||||||||
$1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||
0.01 | %4 | 0.01 | % | 0.01 | % | 0.01 | % | 0.01 | % | |||||||||
0.59 | % | 0.59 | % | 0.58 | % | 0.58 | % | 0.59 | % | |||||||||
0.06 | % | 0.14 | % | 0.14 | % | 0.24 | % | 0.27 | % | |||||||||
0.01 | % | 0.01 | % | 0.01 | % | 0.01 | % | 0.01 | % | |||||||||
$2,953 | $3,260 | $3,919 | $4,108 | $4,433 |
79
See accompanying notes to financial statements
UBS RMA California Municipal Money Fund
Financial highlights
Selected data for a share of beneficial interest outstanding throughout each period is presented below:
Six months ended December 31, 2014 (unaudited) | ||||
Net asset value, beginning of period | $1.00 | |||
Net investment income | 0.000 | 2 | ||
Dividends from net investment income | (0.000 | )2 | ||
Distributions from net realized gains | (0.000 | )2 | ||
Total dividends and distributions | (0.000 | )2 | ||
Net asset value, end of period | $1.00 | |||
Total investment return3 | 0.01 | % | ||
Ratios to average net assets: | ||||
Expenses before fee waivers and/or expense reimbursements | 0.63 | %5 | ||
Expenses after fee waivers and/or expense reimbursements | 0.04 | %5 | ||
Net investment income | 0.01 | %5 | ||
Supplemental data: | ||||
Net assets, end of period (in millions) | $837 |
1 | The investment advisory and administration functions for the Fund were transferred from UBS Financial Services Inc. to UBS Global Asset Management (Americas) Inc. (“UBS Global AM”) on March 1, 2011. As a result, the Fund no longer has a sub-advisor/sub-administrator but is managed directly by UBS Global AM. |
2 | Amount represents less than $0.0005 per share. |
3 | Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and other distributions, if any, at net asset value on the payable dates, and a sale at net asset value on the last day of each period reported. Total investment return for the period of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder could pay on Fund distributions. |
4 | Payment from investment advisor as disclosed on page 90 had no impact on the Fund’s total investment return and represents less than $0.0005 per share. |
5 | Annualized. |
80
See accompanying notes to financial statements
Years ended June 30, | ||||||||||||||||||
2014 | 2013 | 2012 | 20111 | 2010 | ||||||||||||||
$1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||
0.000 | 2 | 0.000 | 2 | 0.000 | 2 | 0.000 | 2 | 0.000 | 2 | |||||||||
(0.000 | )2 | (0.000 | )2 | (0.000 | )2 | (0.000 | )2 | (0.000 | )2 | |||||||||
— | (0.000 | )2 | — | — | (0.000 | )2 | ||||||||||||
(0.000 | )2 | (0.000 | )2 | (0.000 | )2 | (0.000 | )2 | (0.000 | )2 | |||||||||
$1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||
0.01 | %4 | 0.02 | % | 0.01 | % | 0.01 | % | 0.02 | % | |||||||||
0.63 | % | 0.63 | % | 0.62 | % | 0.63 | % | 0.64 | % | |||||||||
0.06 | % | 0.13 | % | 0.12 | % | 0.23 | % | 0.23 | % | |||||||||
0.01 | % | 0.01 | % | 0.01 | % | 0.01 | % | 0.01 | % | |||||||||
$734 | $822 | $894 | $883 | $1,003 |
81
See accompanying notes to financial statements
UBS RMA New York Municipal Money Fund
Financial highlights
Selected data for a share of beneficial interest outstanding throughout each period is presented below:
Six months ended December 31, 2014 (unaudited) | ||||
Net asset value, beginning of period | $1.00 | |||
Net investment income | 0.000 | 2 | ||
Dividends from net investment income | (0.000 | )2 | ||
Distributions from net realized gains | (0.000 | )2 | ||
Total dividends and distributions | (0.000 | )2 | ||
Net asset value, end of period | $1.00 | |||
Total investment return3 | 0.01 | % | ||
Ratios to average net assets: | ||||
Expenses before fee waivers and/or expense reimbursements | 0.65 | %5 | ||
Expenses after fee waivers and/or expense reimbursements | 0.04 | %5 | ||
Net investment income | 0.01 | %5 | ||
Supplemental data: | ||||
Net assets, end of period (in millions) | $739 |
1 | The investment advisory and administration functions for the Fund were transferred from UBS Financial Services Inc. to UBS Global Asset Management (Americas) Inc. (“UBS Global AM”) on March 1, 2011. As a result, the Fund no longer has a sub-advisor/sub-administrator but is managed directly by UBS Global AM. |
2 | Amount represents less than $0.0005 per share. |
3 | Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and other distributions, if any, at net asset value on the payable dates, and a sale at net asset value on the last day of each period reported. Total investment return for the period of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder could pay on Fund distributions. |
4 | Payment from investment advisor as disclosed on page 90 had no impact on the Fund’s total investment return and represents less than $0.0005 per share. |
5 | Annualized. |
82
See accompanying notes to financial statements
Years ended June 30, | ||||||||||||||||||
2014 | 2013 | 2012 | 20111 | 2010 | ||||||||||||||
$1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||
0.000 | 2 | 0.000 | 2 | 0.000 | 2 | 0.000 | 2 | 0.000 | 2 | |||||||||
(0.000 | )2 | (0.000 | )2 | (0.000 | )2 | (0.000 | )2 | (0.000 | )2 | |||||||||
— | (0.000 | )2 | (0.000 | )2 | (0.000 | )2 | — | |||||||||||
(0.000 | )2 | (0.000 | )2 | (0.000 | )2 | (0.000 | )2 | (0.000 | )2 | |||||||||
$1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||
0.01 | %4 | 0.02 | % | 0.01 | % | 0.01 | % | 0.01 | % | |||||||||
0.65 | % | 0.64 | % | 0.65 | % | 0.65 | % | 0.65 | % | |||||||||
0.07 | % | 0.14 | % | 0.14 | % | 0.24 | % | 0.24 | % | |||||||||
0.01 | % | 0.01 | % | 0.01 | % | 0.01 | % | 0.01 | % | |||||||||
$652 | $692 | $703 | $760 | $864 |
83
See accompanying notes to financial statements
UBS RMA
Notes to financial statements (unaudited)
Organization and significant accounting policies
UBS RMA Money Fund Inc. (the “Corporation”) and UBS RMA Tax-Free Fund Inc. (“RMA Tax-Free”) were organized under the laws of Maryland on July 2, 1982 and are registered with the US Securities and Exchange Commission (“SEC”) under the Investment Company Act of 1940, as amended (“1940 Act”), as open-end management investment companies. RMA Tax-Free is a diversified mutual fund and the Corporation is a series mutual fund and currently has three portfolios, each of which are diversified series: UBS RMA Money Market Portfolio (“Money Market Portfolio”), UBS RMA U.S. Government Portfolio (“U.S. Government Portfolio”) and UBS Retirement Money Fund. The financial statements of UBS Retirement Money Fund are not included herein.
UBS Managed Municipal Trust (“Managed Municipal Trust” or the “Trust”) was organized under Massachusetts law by a Declaration of Trust dated November 21, 1986, and is registered with the SEC under the 1940 Act as an open-end management investment company. Managed Municipal Trust currently offers two non-diversified series: UBS RMA California Municipal Money Fund (“RMA California”) and UBS RMA New York Municipal Money Fund (“RMA New York”), and when referred together with Money Market Portfolio, U.S. Government Portfolio, and RMA Tax-Free (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.
The Funds attempt to maintain a stable net asset value of $1.00 per share; the Funds have adopted certain investment, portfolio valuation
84
UBS RMA
Notes to financial statements (unaudited)
and dividend/distribution policies in an attempt to enable them to do so. As with any money market fund, there is no assurance, however, that the Funds will be able to maintain a stable net asset value of $1.00 per share.
The Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) is the exclusive reference of authoritative US generally accepted accounting principles (“US GAAP”) recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the SEC under authority of federal laws are also sources of authoritative US GAAP for SEC registrants. The Funds’ financial statements are prepared in accordance with US GAAP, which may require the use of management estimates and assumptions. Actual results could differ from those estimates. The following is a summary of significant accounting policies:
Valuation of investments—Investments are valued at amortized cost. Periodic review and monitoring of the valuation of the securities held by each Fund is performed in an effort to ensure that amortized cost approximates market value.
US GAAP requires disclosure regarding the various inputs that are used in determining the value of the Funds’ investments. These inputs are summarized into the three broad levels listed below:
Level 1—Unadjusted quoted prices in active markets for identical investments.
Level 2—Other significant observable inputs, including but not limited to, quoted prices for similar investments, interest rates, prepayment speeds and credit risks.
Level 3—Unobservable inputs inclusive of the Funds’ own assumptions in determining the fair value of investments.
In accordance with the requirements of US GAAP, a fair value hierarchy has been included near the end of each Fund’s Statement of net assets.
85
UBS RMA
Notes to financial statements (unaudited)
Repurchase agreements—Each Fund may purchase securities or other obligations from a bank or securities dealer (or its affiliate), subject to the seller’s agreement to repurchase them at an agreed upon date (or upon demand) and price. Each Fund maintains custody of the underlying obligations prior to their repurchase, either through its regular custodian or through a special “tri-party” custodian or sub-custodian that maintains a separate account for both the Funds and their counterparty. The underlying collateral is valued daily in an effort to ensure that the value, including accrued interest, is at least equal to the repurchase price. In the event of default of the obligation to repurchase, the Funds generally have the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. Repurchase agreements involving obligations other than US government securities (such as commercial paper, corporate bonds, equities and mortgage loans) may be subject to special risks and may not have the benefit of certain protections in the event of counterparty insolvency. Moreover, repurchase agreements secured by obligations that are not eligible for direct investment under Rule 2a-7 under the Investment Company Act or a Fund’s investment strategies and limitations, may require the Fund to promptly dispose of such collateral if the seller or guarantor becomes insolvent. If the seller (or seller’s guarantor, if any) becomes insolvent, the Fund may suffer delays, costs and possible losses in connection with the disposition or retention of the collateral. Under certain circumstances, in the event of default or bankruptcy by the other party to the agreement, realization and/or retention of the collateral may be subject to legal proceedings. Each Fund may participate in joint repurchase agreement transactions with other funds managed or advised by UBS 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.
Under certain circumstances, a Fund may engage in a repurchase agreement transaction with a yield of zero in order to invest cash amounts remaining in its portfolio at the end of the day in order to
86
UBS RMA
Notes to financial statements (unaudited)
avoid having the Fund potentially exposed to a fee for uninvested cash held in a business account at a bank.
Investment transactions and investment income—Investment transactions are recorded on the trade date. Realized gains and losses from investment transactions are calculated using the identified cost method. Interest income is recorded on an accrual basis. Discounts are accreted and premiums are amortized as adjustments to interest income and the identified cost of investments.
Dividends and distributions—Dividends and distributions to shareholders are recorded on the ex-dividend date. The amount of dividends and distributions is determined in accordance with federal income tax regulations, which may differ from US GAAP. These “book/tax” differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the capital accounts based on their federal tax-basis treatment; temporary differences do not require reclassification.
Concentration of risk—The ability of the issuers of the debt securities held by the Funds to meet their obligations may be affected by economic and political developments particular to a specific industry, country, state or region.
Additionally, RMA California and RMA New York follow an investment policy of investing primarily in municipal obligations of one state under normal market conditions. Economic changes affecting each state and certain of its public bodies and municipalities may affect the ability of issuers within each state to pay interest on, or repay principal of, municipal obligations held by each of these Funds.
Investment advisor and administrator
Each Fund’s Board has approved an investment advisory and administration contract (the “Advisory Contract”) with UBS Global AM, under which UBS Global AM serves as investment advisor and administrator of the Funds. In accordance with the Advisory Contract,
87
UBS RMA
Notes to financial statements (unaudited)
each Fund pays UBS Global AM an investment advisory and administration fee, which is accrued daily and paid monthly, in accordance with the following schedules:
Average daily net assets | Annual rate | |||
Money Market Portfolio: | ||||
Up to $1 billion | 0.450 | % | ||
In excess of $1 billion up to $1.5 billion | 0.415 | |||
In excess of $1.5 billion up to $5 billion | 0.335 | |||
In excess of $5 billion up to $10 billion | 0.325 | |||
In excess of $10 billion up to $15 billion | 0.315 | |||
In excess of $15 billion up to $20 billion | 0.305 | |||
Over $20 billion | 0.275 | 1 | ||
U.S. Government Portfolio: | ||||
Up to $300 million | 0.450 | % | ||
In excess of $300 million up to $750 million | 0.415 | |||
In excess of $750 million up to $1.5 billion | 0.335 | |||
In excess of $1.5 billion up to $5 billion | 0.325 | |||
In excess of $5 billion up to $10 billion | 0.315 | |||
In excess of $10 billion up to $15 billion | 0.305 | |||
In excess of $15 billion up to $20 billion | 0.275 | |||
Over $20 billion | 0.265 | |||
RMA Tax-Free: | ||||
Up to $1 billion | 0.450 | % | ||
In excess of $1 billion up to $1.5 billion | 0.415 | |||
In excess of $1.5 billion up to $5 billion | 0.335 | |||
In excess of $5 billion up to $10 billion | 0.325 | |||
In excess of $10 billion up to $15 billion | 0.315 | |||
In excess of $15 billion up to $20 billion | 0.305 | |||
Over $20 billion | 0.275 | |||
RMA California and RMA New York: | ||||
Up to $300 million | 0.450 | % | ||
In excess of $300 million up to $750 million | 0.415 | |||
In excess of $750 million up to $1.5 billion | 0.335 | |||
In excess of $1.5 billion up to $5 billion | 0.325 | |||
Over $5 billion | 0.315 |
1 | UBS Global AM has contractually agreed to cap Money Market Portfolio’s aggregate management and shareholder services fees (paid pursuant to the Portfolio’s |
88
UBS RMA
Notes to financial statements (unaudited)
shareholder services plan) so that the total of these fees does not exceed 0.50% of the Portfolio’s average daily net assets. This cap results in an effective investment advisory and administration fee rate not to exceed 0.35% of the Portfolio’s average daily net assets. (UBS Global AM is waiving a portion of its advisory and administration fees to offset the shareholder services fees, and the contractual cap continues for as long as the Portfolios’ shareholder services plan remains in effect). For the six months ended December 31, 2014, Money Market Portfolio waived $395,084 under such agreement; the amount of such waiver was less than it otherwise might have been given the impact of the waiver of significant fees under other undertakings as discussed further below. |
At December 31, 2014, certain Funds owe or are owed by UBS Global AM for investment advisory and administration fees, net of fee waivers and/or expense reimbursements as follows:
Fund | Amounts due to (owed by) UBS Global AM | |||
Money Market Portfolio | $ | 441,691 | ||
U.S. Government Portfolio | 68,565 | |||
RMA Tax-Free | (52,220 | ) | ||
RMA California | (22,022 | ) | ||
RMA New York | (18,062 | ) |
In addition to the above arrangements, UBS Global AM has undertaken to waive fees and/or reimburse expenses in the event that Fund yields drop below a certain level. This undertaking is voluntary and not contractual and may be terminated at any time. During the six months ended December 31, 2014, UBS Global AM voluntarily waived investment advisory and administration fees and/or reimbursed expenses as follows:
Money Market Portfolio | $ | 6,599,148 | ||
U.S. Government Portfolio | 2,973,588 | |||
RMA Tax-Free | 5,976,204 | |||
RMA California | 1,821,283 | |||
RMA New York | 1,592,391 |
Such voluntarily waived amounts are not subject to future recoupment.
89
UBS RMA
Notes to financial statements (unaudited)
The Funds may invest in certain affiliated entities also advised or managed by UBS Global AM. Investments in affiliated entities, if any, for the six months ended December 31, 2014 have been included near the end of each Fund’s Statement of net assets.
Under normal conditions, the Funds invest cash collateral from securities lending activities into an affiliated private money market fund, UBS Private Money Market Fund LLC (“Private Money Market”), which operates in compliance with most of the substantive provisions of Rule 2a-7 of the 1940 Act. Private Money Market is managed by UBS Global AM and is currently offered as a cash management option to mutual funds and certain other accounts managed by UBS Global AM. UBS Global AM acts as managing member and receives a management fee from Private Money Market payable monthly in arrears at the annual rate of 0.10% of Private Money Market’s average daily members’ equity, minus the aggregate operating expenses of, and incurred by, Private Money Market during each such related month, not including investment expenses (including brokerage commissions, taxes, interest charges and other costs with respect to transactions in securities) and extraordinary expenses including litigation expenses, if any. UBS Global AM may, in its sole discretion, waive all or any portion of the management fee to which it may be entitled from time to time in order to maintain operating expenses or net yields at a certain level. Distributions received from Private Money Market, if any, net of fee rebates paid to borrowers, are reflected as affiliated securities lending income in the Statement of operations.
In August 2013, UBS Global AM made voluntary cash payments of $1,432,012, $555,987, $739,197, $438,085 and $153,594 to Money Market Portfolio, U.S. Government Portfolio, RMA Tax-Free, RMA California and RMA New York, respectively, in order to address a differential between the number of shares outstanding and the Funds’ net assets. The differential was attributable to historical, embedded capital losses that were experienced by the Funds over several years prior to the credit crisis of 2008. The voluntary payment to each Fund was not required to maintain a stable net asset value per share. The payment has removed a small, historical deviation that was reflected in each Fund’s market price based and amortized cost net asset value per share.
90
UBS RMA
Notes to financial statements (unaudited)
Additional information regarding compensation to affiliate of a board member
Professor Meyer Feldberg serves as a senior advisor to Morgan Stanley, a financial services firm with which the Funds may conduct transactions, resulting in him being an interested board member of the Funds. The Funds have been informed that Professor Feldberg’s role at Morgan Stanley does not involve matters directly affecting any UBS funds. Portfolio transactions are executed through Morgan Stanley based on that firm’s ability to provide best execution of the transactions. During the six months ended December 31, 2014, 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 | $ | 732,961,598 | ||
RMA Tax-Free | 230,400,000 | |||
RMA California | 71,680,000 | |||
RMA New York | 39,350,000 |
Morgan Stanley received compensation in connection with these trades, which may have been in the form of a “mark-up” or “mark-down” of the price of the securities, a fee from the issuer for maintaining a commercial paper program, or some other form of compensation. Although the precise amount of this compensation is not generally known by the Funds’ investment advisor, it is believed that under normal circumstances it represents a small portion of the total value of the transactions.
Shareholder service plans
UBS 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, the Funds 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 each Fund’s average daily net assets for providing certain shareholder services. Each Fund currently pays service fees to UBS Global AM (US) at the maximum annual rate of 0.15% of each Fund’s average daily net assets. UBS Global AM (US) has undertaken to waive
91
UBS RMA
Notes to financial statements (unaudited)
fees in the event that Fund yields drop below a certain level. This undertaking is voluntary and not contractual and may be terminated at any time. At December 31, 2014, given the impact of voluntary fee waivers, the Funds did not owe UBS Global AM (US) for such service fees. For the six months ended December 31, 2014, UBS Global AM (US) voluntarily waived service fees as follows:
Money Market Portfolio | $ | 3,817,892 | ||
U.S. Government Portfolio | 1,299,331 | |||
RMA Tax-Free | 2,238,482 | |||
RMA California | 610,236 | |||
RMA New York | 530,359 |
Such voluntarily waived amounts are not subject to future recoupment.
Transfer agency and related services fees
UBS Financial Services Inc. provides certain services pursuant to a delegation of authority from BNY Mellon Investment Servicing (US) Inc. (“BNY Mellon”), the Funds’ transfer agent, and was compensated for these services by BNY Mellon, not the Funds.
For the six months ended December 31, 2014, UBS Financial Services Inc. received from BNY Mellon, not the Funds, total delegated services fees as follows:
Money Market Portfolio | $ | 453,084 | ||
U.S. Government Portfolio | 41,470 | |||
RMA Tax-Free | 285,073 | |||
RMA California | 51,313 | |||
RMA New York | 42,610 |
Securities lending
Each Portfolio may lend securities up to 33 1/3% of its total assets to qualified broker-dealers or institutional investors. The loans are secured at all times by cash, US government securities or irrevocable letters of credit in an amount at least equal to the market value of the securities loaned, plus accrued interest and dividends, determined on a daily basis
92
UBS RMA
Notes to financial statements (unaudited)
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. State Street Bank and Trust Company serves as the Funds’ lending agent. At December 31, 2014, the Funds did not have any securities on loan.
Other liabilities and components of net assets
At December 31, 2014, the Funds had the following liabilities outstanding:
Dividends payable | Other accrued expenses* | |||||||
Money Market Portfolio | $ | 11,841 | $ | 525,041 | ||||
U.S. Government Portfolio | 4,206 | 108,334 | ||||||
RMA Tax-Free | 7,026 | 293,169 | ||||||
RMA California | 1,894 | 93,100 | ||||||
RMA New York | 1,692 | 85,483 |
* | Excludes investment advisory and administration and service fees. |
At December 31, 2014, the components of net assets for each of the Funds were as follows:
Accumulated paid in capital | Accumulated net realized gain/(loss) | Total net assets | ||||||||||
Money Market Portfolio | $ | 5,114,742,877 | $ | 12,178 | $ | 5,114,755,055 | ||||||
U.S. Government Portfolio | 1,921,572,917 | (16,081 | ) | 1,921,556,836 | ||||||||
RMA Tax-Free | 3,021,821,738 | 3,958 | 3,021,825,696 | |||||||||
RMA California | 836,788,976 | 24,960 | 836,813,936 | |||||||||
RMA New York | 738,690,777 | 33,033 | 738,723,810 |
93
UBS RMA
Notes to financial statements (unaudited)
Capital share transactions
There are 60 billion $0.001 par value shares of common stock authorized for Money Market Portfolio, 10 billion $0.001 par value shares of common stock authorized for 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, 2014 | Money Market Portfolio | U.S. Government Portfolio | RMA Tax-Free | |||||||||
Shares sold | 19,204,974,206 | 4,492,449,976 | 6,584,817,540 | |||||||||
Shares repurchased | (19,254,226,187 | ) | (4,236,072,214 | ) | (6,516,524,437 | ) | ||||||
Dividends reinvested | 238,009 | 97,887 | 206,758 | |||||||||
Net increase (decrease) in shares outstanding | (49,013,972 | ) | 256,475,649 | 68,499,861 |
For the year ended June 30, 2014 | Money Market Portfolio | U.S. Government Portfolio | RMA Tax-Free | |||||||||
Shares sold | 39,039,405,595 | 10,218,847,731 | 14,789,636,795 | |||||||||
Shares repurchased | (44,959,133,315 | ) | (11,180,248,888 | ) | (15,097,421,866 | ) | ||||||
Dividends reinvested | 811,817 | 232,794 | 314,751 | |||||||||
Net decrease in shares outstanding | (5,918,915,903 | ) | (961,168,363 | ) | (307,470,320 | ) |
Beneficial interest
There is an unlimited amount of $0.001 par value shares of beneficial interest authorized for RMA California and RMA New York. Transactions in shares of beneficial interest, at $1.00 per share were as follows:
For the six months ended December 31, 2014 | RMA California | RMA New York | ||||||
Shares sold | 2,265,402,138 | 1,704,208,525 | ||||||
Shares repurchased | (2,162,366,114 | ) | (1,617,892,489 | ) | ||||
Dividends reinvested | 83,177 | 53,169 | ||||||
Net increase in shares outstanding | 103,119,201 | 86,369,205 |
94
UBS RMA
Notes to financial statements (unaudited)
For the year ended June 30, 2014 | RMA California | RMA New York | ||||||
Shares sold | 4,268,363,863 | 3,543,159,886 | ||||||
Shares repurchased | (4,356,864,188 | ) | (3,582,868,057 | ) | ||||
Dividends reinvested | 80,758 | 67,247 | ||||||
Net decrease in shares outstanding | (88,419,567 | ) | (39,640,924 | ) |
Federal tax status
Each Fund intends to distribute substantially all of its income and to comply with the other requirements of the Internal Revenue Code applicable to regulated investment companies. Accordingly, no provision for federal income taxes is required. In addition, by distributing during each calendar year substantially all of their net investment income, net realized capital gains and certain other amounts, if any, the Funds intend not to be subject to a federal excise tax.
The tax character of distributions paid to shareholders by Money Market Portfolio and U.S. Government Portfolio during the six months ended December 31, 2014, and the fiscal year ended June 30, 2014, was ordinary income. The tax character of distributions paid to shareholders by RMA Tax-Free, RMA California, and RMA New York will be determined at the end of the Funds’ fiscal year ending June 30, 2015. The tax character of distributions paid to shareholders by RMA Tax-Free, RMA California, and RMA New York during the fiscal year ended June 30, 2014, was all 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, 2015.
ASC 740-10 “Income Taxes—Overall” sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken. The Funds have conducted an analysis and concluded as of December 31, 2014, that there are no significant uncertain tax positions taken or expected to be taken that would require recognition in the financial statements. The Funds recognize
95
UBS RMA
Notes to financial statements (unaudited)
interest and penalties, if any, related to uncertain tax positions as income tax expense in the Statement of operations. During the six months ended December 31, 2014, the Funds did not incur any interest or penalties.
Each of the tax years in the four year period ended June 30, 2014, remains subject to examination by the Internal Revenue Service and state taxing authorities.
Regulatory developments
On July 23, 2014, the SEC amended certain regulations that govern money market funds registered under the 1940 Act. The most significant changes will not become mandatory until October 2016. The most significant change is a requirement that institutional prime and institutional municipal money market funds move to a floating net asset value and change an accounting methodology that had been used for decades. In addition, all prime and municipal money market funds will be subject to potential redemption fees/gates under limited circumstances prescribed in the new regulations. Government, Treasury, retail prime and retail municipal money market funds will continue to be permitted to transact at a stable $1.00 share price. UBS Global AM is currently evaluating the potential impact of these changes on the Funds and expects to update shareholders further in advance of the October 2016 deadline.
96
UBS RMA
General information (unaudited)
Monthly and quarterly portfolio holdings disclosure
The Funds will file their complete schedules of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the SEC’s Web site at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the SEC’s Public Reference Room may be obtained by calling 1-800-SEC 0330. Additionally, you may obtain copies of Forms N-Q from the Funds upon request by calling 1-800-647-1568.
In addition, each Fund discloses, on a monthly basis: (a) a complete schedule of its portfolio holdings; and (b) information regarding its weighted average maturity and weighted average life on UBS’s Web site at the following internet address: www.ubs.com/usmoneymarketfundsholdings. In addition, at this location, you will find a link to more detailed Fund information appearing in filings with the SEC on Form N-MFP. Investors also may find additional information about the Funds at the above referenced UBS Web site internet address.
Proxy voting policies, procedures and record
You may obtain a description of each Fund’s (1) proxy voting policies, (2) proxy voting procedures and (3) information regarding how a Fund voted any proxies related to portfolio securities during the most recent 12-month period ended June 30 for which an SEC filing has been made, without charge, upon request by contacting a Fund directly at 1-800-647-1568, online on a Fund’s Web site: www.ubs.com/ubsglobalam-proxy, or on the EDGAR Database on the SEC’s Web site (http:/www.sec.gov).
Other tax information
Pursuant to Section 871(k)(2)(C) of the Internal Revenue Code, each Fund designates 100% of its “qualified short-term gains” (as defined in Section 871(k)(2)(D)) as short-term capital gain dividends for the calendar year 2014.
97
UBS RMA
Board approval of investment advisory and administration agreements (unaudited)
Background—At a meeting of the boards of UBS RMA Money Fund Inc. (“RMA Money Fund”), UBS RMA Tax-Free Fund, Inc. (“RMA Tax-Free Fund”) and UBS Managed Municipal Trust (“Managed Municipal Trust”) on July 15-16, 2014, the members of each board, including the board members who are not “interested persons” of RMA Money Fund, RMA Tax-Free Fund or Managed Municipal Trust (“Independent Board Members”), as defined in the Investment Company Act of 1940, as amended (the “1940 Act”), considered and approved the continuance of the investment advisory and administration agreements (each an “Investment Advisory and Administration Agreement” and together the “Investment Advisory and Administration Agreements”) for the funds as follows: the board of RMA Money Fund approved the continuance of the Investment Advisory and Administration Agreement of RMA Money Fund with respect to its series, UBS RMA Money Market Portfolio and UBS RMA U.S. Government Portfolio (each a “Portfolio” and together the “Portfolios”), with UBS Global Asset Management (Americas) Inc. (“UBS Global AM”); the board of RMA Tax-Free Fund approved the continuance of the Investment Advisory and Administration Agreement of RMA Tax-Free Fund with UBS Global AM; and the board of Managed Municipal Trust approved the continuance of the Investment Advisory and Administration Agreement of Managed Municipal Trust with respect to its series, UBS RMA California Municipal Money Fund and UBS RMA New York Municipal Money Fund (each a “Municipal Fund” and together with the Portfolios and RMA Tax-Free Fund, each a “Fund” and together the “Funds”), and UBS Global AM. Although the board members of RMA Money Fund, RMA Tax-Free Fund and Managed Municipal Trust met together, each board made decisions independently with respect to the Fund(s) it oversees. In preparing for the meeting, the board members had requested and received extensive information from UBS Global AM to assist them, including information about UBS Global AM as well as the advisory, administrative and distribution arrangements for each Fund they oversee. The Independent Board Members discussed the materials initially provided by management on several occasions prior to the scheduled board meeting. The Independent Board Members also met in executive session after management’s presentation was completed to review the disclosure that had been made to them at the meeting. At these
98
UBS RMA
Board approval of investment advisory and administration agreements (unaudited)
sessions the Independent Directors were joined by 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 the approval of advisory, administration and distribution agreements.
In its consideration of the approval of the Investment Advisory and Administration Agreements, each board reviewed the following factors:
Nature, extent and quality of the services under the Investment Advisory and Administration Agreements—Each board received and considered information regarding the nature, extent and quality of advisory services provided to each Fund overseen by it by UBS Global AM under the applicable Investment Advisory and Administration Agreement during the past year. Each board also considered the nature, extent and quality of administrative, distribution, and shareholder services performed by UBS Global AM and its affiliates for each Fund overseen by it and the resources devoted to, and the record of compliance with, each Fund’s compliance policies and procedures. Each board noted that it received information at regular meetings throughout the year regarding the services rendered by UBS Global AM concerning the management of each Fund’s affairs and UBS Global AM’s role in coordinating and overseeing providers of other services to the Funds. Each board’s evaluation of the services provided by 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 Global AM’s investment advisory and other capabilities and the quality of its administrative and other services. Each board observed that the scope of services provided by UBS Global AM had expanded over time as a result of regulatory and other developments, including maintaining and monitoring its own and the Funds’ expanded compliance programs.
The boards had available to them the qualifications, backgrounds and responsibilities of the senior personnel at UBS Global AM responsible for each Fund and had previously met with and received information regarding the person primarily responsible for the day-to-day
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management of each Fund. The boards recognized that senior personnel at UBS Global AM report to the boards regularly and that at each regular meeting the boards receive a detailed report from UBS Global AM on each Fund’s performance. The boards also considered, based on their knowledge of UBS Global AM and its affiliates, the financial resources available to UBS Global AM and its parent organization, UBS AG. In that regard, the boards received extensive financial information regarding UBS Global AM and noted that it was a wholly owned, indirect subsidiary of one of the largest financial services firms in the world. It also was noted that UBS Global AM had approximately $158 billion in assets under management as of March 31, 2014 and was part of the UBS Global Asset Management Division, which had approximately $674 billion in assets under management worldwide as of March 31, 2014. The boards also were cognizant of, and considered, the regulatory and litigation actions and investigations occurring in the past few years involving UBS AG, UBS Global AM and certain of their affiliates.
Each board concluded that, overall, it was satisfied with the nature, extent and quality of services provided (and expected to be provided) to each Fund overseen by it under its Investment Advisory and Administration Agreement.
Advisory fees and expense ratios—For each Fund, its board reviewed and considered the contractual advisory and administration fee (the “Contractual Management Fee”) payable by that Fund to UBS Global AM in light of the nature, extent and quality of the advisory and administrative services provided by UBS Global AM. Each board also reviewed and considered any fee waiver and/or expense reimbursement arrangement implemented and considered the actual fee rate for each Fund overseen by that board (after taking any waivers and/or reimbursements into account) (the “Actual Management Fee”). Additionally, each board received and considered information comparing the applicable Fund’s Contractual Management Fee, Actual Management Fee and total expenses with those of funds in a group of funds selected and provided by Lipper, Inc. (“Lipper”), an independent provider of investment company data (the “Expense Group”).
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In connection with its consideration of each Fund’s management fee, each board also received information from UBS Global AM with respect to fees paid by institutional or separate accounts; however, in management’s view, such fee information was not very relevant to the Funds because, among other reasons, separately managed and institutional accounts with a “cash” mandate (a) were not subject to all of the constraints of Rule 2a-7 under the 1940 Act to which the Funds are subject and (b) do not involve the management responsibilities attendant to the operation of a 1940 Act regulated fund, and, therefore, were not totally comparable. The boards also received information on fees charged to other mutual funds managed by UBS Global AM.
UBS RMA Money Market Portfolio
The comparative Lipper information showed that the Portfolio’s Contractual Management Fee, Actual Management Fee and total expenses were below the median in the Portfolio’s Expense Group for the comparison periods utilized in the Lipper report. (Below median expenses represents fees or expenses that are lower relative to the median and above median expenses represents fees or expenses that are higher relative to the median of the funds in the Expense Group.)
UBS RMA U.S. Government Portfolio
The comparative Lipper information showed that the Portfolio’s Contractual Management Fee and Actual Management Fee were slightly above the median, while total expenses were below the median (lowest in the Expense Group) in the Portfolio’s Expense Group for the comparison periods utilized in the Lipper report.
UBS RMA Tax-Free Fund
The comparative Lipper information showed that the Fund’s Contractual Management Fee was at the median, while its Actual Management Fee and total expenses were below the median (total expenses were lowest in the Expense Group) in the Fund’s Expense Group for the comparison periods utilized in the Lipper report.
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UBS RMA California Municipal Money Fund and UBS RMA New York Municipal Money Fund
The comparative Lipper information showed that California Municipal Money Fund’s Contractual Management Fee, Actual Management Fee and total expenses were below the median (Actual Management Fee and total expenses were lowest in the Expense Group) in the Fund’s Expense Group for the comparison periods utilized in the Lipper report.
The comparative Lipper information showed that New York Municipal Money Fund’s Contractual Management Fee was slightly above the median, while its Actual Management Fee and total expenses were below the median (total expenses were lowest in the Expense Group) in the Fund’s Expense Group for the comparison periods utilized in the Lipper report.
In light of the foregoing, each board determined that the management fee for each Fund overseen by it was reasonable in light of the nature, extent and quality of services provided to the applicable Fund under its Investment Advisory and Administration Agreement.
Fund performance—The board of each Fund received and considered (a) annualized total return information of each Fund overseen by it compared to other funds (the “Performance Universe”) selected by Lipper over the one-, three-, five-, ten-year and since inception periods ended April 30, 2014 and (b) annualized performance information for each year in the ten-year period ended April 30, 2014. Although the boards received information for the ten-year and since inception periods, in their analysis, they generally placed greater emphasis on the one-, three- and five-year periods. The boards were provided with a description of the methodology Lipper used to determine the similarity of each Fund with the funds included in its Performance Universe. Each board also noted that it had received information throughout the year at periodic intervals with respect to each Fund’s performance.
UBS RMA Money Market Portfolio
The comparative Lipper information showed that the Portfolio’s performance was at the median for the one-, three- and five-year
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periods, above the median for the ten-year period and below the median since inception. (Below median performance represents performance that is worse relative to the median and above median performance represents performance that is better relative to the median.) Management noted that the Portfolio’s performance since inception was close to the Performance Universe median. Based on its review, the board concluded that the Portfolio’s investment performance was acceptable.
UBS RMA U.S. Government Portfolio
The comparative Lipper information showed that the Portfolio’s performance was at the median for the one-, three- and five-year periods and below the median for the ten-year period and since inception. Management noted the Portfolio’s improved performance over the past few years. Based on its review, the board concluded that the Portfolio’s investment performance was acceptable.
UBS RMA Tax-Free Fund
The comparative Lipper information showed that the Fund’s performance was at the median for the one- and three-year periods and below the median for the five- and ten-year periods and since inception. As in prior years, management explained that the Fund is managed more conservatively than its peers, generally resulting in a lower yield over time in comparison with its peers. Management also noted the Portfolio’s improved performance over the past few years. Based on its review and management’s explanation, the board concluded that the Fund’s investment performance was acceptable.
UBS RMA California Municipal Money Fund and UBS RMA New York Municipal Money Fund
The comparative Lipper information showed that California Municipal Money Fund’s performance was at the median for the one- and three-year periods and below the median for the five- and ten-year periods and since inception.
The comparative Lipper information showed that New York Municipal Money Fund’s performance was at the median for the one- and
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three-year periods and below the median for the five- and ten-year periods and since inception.
As in prior years, management explained that, in comparison with its Performance Universe, each Municipal Fund’s portfolio was generally of higher overall credit quality and contained limited exposure to investments subject to the alternative minimum tax, which has generally resulted in lower yields over time when compared to their respective Lipper peer groups. In addition, management noted that each Municipal Fund maintained larger allocations to overnight liquidity debt compared to the applicable Performance Universe. Management also noted each Municipal Fund’s improved performance over the past few years. Based on its review and management’s explanation, the board concluded that each Municipal Fund’s investment performance was acceptable.
Advisor profitability—Each board received and considered a profitability analysis of UBS Global AM and its affiliates in providing services to each Fund. Each board also received profitability information with respect to the UBS New York fund complex as a whole. UBS Global AM’s profitability was considered not excessive in light of the nature, extent and quality of the services provided to each Fund.
Economies of scale—Each board received and considered information from management regarding whether UBS Global AM realized economies of scale as each Fund’s assets grew, whether each Fund has appropriately benefited from any economies of scale, and whether there is potential for realization of any further economies of scale. Each board considered whether economies of scale in the provision of services to each Fund were being passed along to the shareholders.
Each board noted that each Fund’s Contractual Management Fee contained breakpoints. The relevant boards considered that each Fund’s asset level exceeded various breakpoint(s) and, as a result, each of these Funds and its shareholders realized certain economies of scale because the total expense ratio of each such Fund was lower than if no breakpoints had been in place. The boards also noted that, as discussed earlier, each Fund’s total expenses were below the relevant Expense
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Group median and, in fact, except for UBS RMA Money Market Portfolio, were the lowest in its Expense Group. Accordingly, each board determined that economies of scale were in place that could be passed on to shareholders, including in the form of breakpoints to the management fee and operational efficiencies; however, each board recognized that the benefits of economies of scale were exceeded by the impact of UBS Global AM’s ongoing voluntary fee waivers and expense reimbursements.
Generally, in light of UBS Global AM’s profitability data, the Contractual Management Fee and Actual Management Fee, and the breakpoints currently in place, each board believed that UBS Global AM’s 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 Global AM and its affiliates as a result of its relationship with the Funds, including the opportunity to offer additional products and services to Fund shareholders. In light of the costs of providing investment advisory, administrative and other services to the Funds and UBS Global AM’s ongoing commitment to the Funds, the profits and other ancillary benefits that UBS Global AM and its affiliates received were considered reasonable.
In light of all of the foregoing, each board approved the Investment Advisory and Administration Agreement for each Fund overseen by it. No single factor reviewed by the boards was identified by the boards as the principal factor in determining whether to approve the Investment Advisory and Administration Agreements. The Independent Board Members were advised by separate independent legal counsel throughout the process. The boards discussed the proposed continuance of the Investment Advisory and Administration Agreements in private sessions with their independent legal counsel at which no representatives of UBS 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
David Malpass | |
Principal Officers | ||
Mark E. Carver President
Mark F. Kemper Vice President and Secretary
Thomas Disbrow Vice President and Treasurer | Robert Sabatino Vice President (Taxable Funds)
Elbridge T. Gerry III Vice President (Tax-Free Funds)
Erin O. Houston Vice President (Tax-Free Funds) |
Investment Advisor and Administrator
UBS Global Asset Management (Americas) Inc.
1285 Avenue of the Americas
New York, New York 10019-6028
Principal Underwriter
UBS Global Asset Management (US) Inc.
1285 Avenue of the Americas
New York, New York 10019-6028
The financial information included herein is taken from the records of the Funds without examination by independent registered public accountants who do not express an opinion thereon.
This report is not to be used in connection with the offering of shares of the Funds unless accompanied or preceded by an effective prospectus.
©UBS 2015. All rights reserved.
|
UBS Global Asset Management (Americas) Inc.
1285 Avenue of the Americas
New York, New York 10019-6028
S157
Item 2. Code of Ethics.
Form N-CSR disclosure requirement not applicable to this filing of a semi-annual report.
Item 3. Audit Committee Financial Expert.
Form N-CSR disclosure requirement not applicable to this filing of a semi-annual report.
Item 4. Principal Accountant Fees and Services.
Form N-CSR disclosure requirement not applicable to this filing of a semi-annual report.
Item 5. Audit Committee of Listed Registrants.
Not applicable to the registrant.
Item 6. Investments.
(a) | Included as part of the report to shareholders filed under Item 1 of this form. |
(b) | Not applicable. |
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable to the registrant.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable to the registrant.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable to the registrant.
Item 10. Submission of Matters to a Vote of Security Holders.
The registrant’s Board has established a Nominating and Corporate Governance Committee. The Nominating and Corporate Governance Committee will consider nominees recommended by shareholders if a vacancy occurs among those board members who are not “interested persons” as defined in Section 2(a)(19) of the Investment Company Act of 1940, as amended. In order to recommend a nominee, a shareholder should send a letter to the chairperson of the Nominating and Corporate Governance Committee, Richard R. Burt, care of the Secretary of the registrant at UBS Global Asset Management, UBS Building, One North Wacker Drive, Chicago, IL 60606, Attn: Mark Kemper, Secretary, and indicate on the envelope “Nominating and Corporate Governance Committee.” The shareholder’s letter should state the nominee’s name and should include the nominee’s resume or curriculum vitae, and must be accompanied by a written consent of the individual to stand for election if nominated for the Board and to serve if elected by shareholders.
Item 11. Controls and Procedures.
(a) | The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) are effective based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this document. |
(b) | The registrant’s principal executive officer and principal financial officer are aware of no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940, as amended) that occurred during the registrant’s last fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12. Exhibits.
(a) | (1) Code of Ethics – Form N-CSR disclosure requirement not applicable to this filing of a semi-annual report. |
(a) | (2) Certifications of principal executive officer and principal financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto as Exhibit EX-99.CERT. |
(a) | (3) Written solicitation to purchase securities under Rule 23c-1 under the Investment Company Act of 1940 sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons – not applicable to the registrant. |
(b) | Certifications of principal executive officer and principal financial officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto as Exhibit EX-99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
UBS Managed Municipal Trust
By: | /s/ Mark E. Carver |
Mark E. Carver |
President |
Date: | March 9, 2015 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ Mark E. Carver |
Mark E. Carver |
President |
Date: | March 9, 2015 |
By: | /s/ Thomas Disbrow |
Thomas Disbrow |
Vice President and Treasurer |
Date: | March 9, 2015 |