UBS RMA
Statement of operations
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six months ended
December 31, 2013 (unaudited)
|
|
|
|
|
|
|
|
|
Money Market
Portfolio
|
|
|
U.S. Government
Portfolio
|
|
|
Investment income:
|
|
|
|
|
|
|
|
|
|
Interest
|
|
|
$7,044,255
|
|
|
|
$908,383
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
Investment advisory and administration fees
|
|
|
14,894,128
|
|
|
|
4,160,849
|
|
|
Service fees
|
|
|
6,400,173
|
|
|
|
1,721,463
|
|
|
Transfer agency and related services fees
|
|
|
1,517,714
|
|
|
|
140,461
|
|
|
Custody and accounting fees
|
|
|
396,272
|
|
|
|
106,672
|
|
|
Insurance fees
|
|
|
136,994
|
|
|
|
32,529
|
|
|
State registration fees
|
|
|
136,029
|
|
|
|
40,290
|
|
|
Reports and notices to shareholders
|
|
|
102,876
|
|
|
|
10,409
|
|
|
Professional fees
|
|
|
68,729
|
|
|
|
65,302
|
|
|
Directors’/Trustees’ fees
|
|
|
62,319
|
|
|
|
20,096
|
|
|
Other expenses
|
|
|
53,868
|
|
|
|
23,844
|
|
|
|
|
|
23,769,102
|
|
|
|
6,321,915
|
|
|
Fee waivers and/or expense reimbursements by investment advisor/administrator/distributor
|
|
|
(17,151,968
|
)
|
|
|
(5,528,418
|
)
|
|
Net expenses
|
|
|
6,617,134
|
|
|
|
793,497
|
|
|
Net investment income
|
|
|
427,121
|
|
|
|
114,886
|
|
|
Net realized gain (loss)
|
|
|
1,400
|
|
|
|
(131
|
)
|
|
Net increase in net assets resulting from operations
|
|
|
$428,521
|
|
|
|
$114,755
|
|
70
See accompanying notes to financial statements
|
|
|
|
|
|
|
|
|
|
|
|
For the six months ended
December 31, 2013 (unaudited)
|
|
|
|
|
|
|
Tax-Free
Fund
|
|
|
California
Municipal
Money Fund
|
|
|
New York
Municipal
Money Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$1,286,030
|
|
|
|
$298,673
|
|
|
|
$266,945
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,371,404
|
|
|
|
1,797,767
|
|
|
|
1,513,451
|
|
|
|
2,503,000
|
|
|
|
645,837
|
|
|
|
527,898
|
|
|
|
524,279
|
|
|
|
94,472
|
|
|
|
79,488
|
|
|
|
155,260
|
|
|
|
40,059
|
|
|
|
32,746
|
|
|
|
43,316
|
|
|
|
10,990
|
|
|
|
9,360
|
|
|
|
36,772
|
|
|
|
15,554
|
|
|
|
14,184
|
|
|
|
37,685
|
|
|
|
6,969
|
|
|
|
5,769
|
|
|
|
68,693
|
|
|
|
61,889
|
|
|
|
60,824
|
|
|
|
23,697
|
|
|
|
11,201
|
|
|
|
10,517
|
|
|
|
36,081
|
|
|
|
18,006
|
|
|
|
17,021
|
|
|
|
9,800,187
|
|
|
|
2,702,744
|
|
|
|
2,271,258
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(8,681,202
|
)
|
|
|
(2,447,176
|
)
|
|
|
(2,039,550
|
)
|
|
|
1,118,985
|
|
|
|
255,568
|
|
|
|
231,708
|
|
|
|
167,045
|
|
|
|
43,105
|
|
|
|
35,237
|
|
|
|
18,249
|
|
|
|
6,798
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$185,294
|
|
|
|
$49,903
|
|
|
|
$35,237
|
|
71
See accompanying notes to financial statements
UBS RMA
Statement of changes in net assets
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six
months ended
December 31, 2013
(unaudited)
|
|
|
For the
year ended
June 30, 2013
|
|
|
UBS RMA Money Market Portfolio
|
|
|
|
|
|
|
|
|
|
From operations:
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
$427,121
|
|
|
|
$1,123,224
|
|
|
Net realized gain
|
|
|
1,400
|
|
|
|
8,646
|
|
|
Net increase in net assets resulting from operations
|
|
|
428,521
|
|
|
|
1,131,870
|
|
|
Dividends and distributions to shareholders from:
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
(427,121
|
)
|
|
|
(1,123,224
|
)
|
|
Net realized gains
|
|
|
(136,747
|
)
|
|
|
(9,900
|
)
|
|
Total dividends and distributions to shareholders
|
|
|
(563,868
|
)
|
|
|
(1,133,124
|
)
|
|
Net decrease in net assets from capital share transactions
|
|
|
(4,419,857,135
|
)
|
|
|
(1,950,710,574
|
)
|
|
Cash payment from investment advisor
|
|
|
1,432,012
|
|
|
|
—
|
|
|
Net decrease in net assets
|
|
|
(4,418,560,470
|
)
|
|
|
(1,950,711,828
|
)
|
|
Net assets:
|
|
|
|
|
|
|
|
|
|
Beginning of period
|
|
|
11,081,377,487
|
|
|
|
13,032,089,315
|
|
|
End of period
|
|
|
$6,662,817,017
|
|
|
|
$11,081,377,487
|
|
Accumulated undistributed net
investment income
|
|
|
$—
|
|
|
|
$—
|
|
|
|
|
|
|
UBS RMA U.S. Government Portfolio
|
|
|
|
|
|
|
|
|
|
From operations:
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
$114,886
|
|
|
|
$265,021
|
|
|
Net realized gain (loss)
|
|
|
(131
|
)
|
|
|
31,471
|
|
|
Net increase in net assets resulting from operations
|
|
|
114,755
|
|
|
|
296,492
|
|
|
Dividends and distributions to shareholders from:
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
(114,886
|
)
|
|
|
(265,021
|
)
|
|
Net realized gains
|
|
|
(29,106
|
)
|
|
|
(40,088
|
)
|
|
Total dividends and distributions to shareholders
|
|
|
(143,992
|
)
|
|
|
(305,109
|
)
|
|
Net decrease in net assets from capital share transactions
|
|
|
(575,400,555
|
)
|
|
|
(1,156,409,340
|
)
|
|
Cash payment from investment advisor
|
|
|
555,987
|
|
|
|
—
|
|
|
Net decrease in net assets
|
|
|
(574,873,805
|
)
|
|
|
(1,156,417,957
|
)
|
|
Net assets:
|
|
|
|
|
|
|
|
|
|
Beginning of period
|
|
|
2,625,720,341
|
|
|
|
3,782,138,298
|
|
|
End of period
|
|
|
$2,050,846,536
|
|
|
|
$2,625,720,341
|
|
Accumulated undistributed net
investment income
|
|
|
$—
|
|
|
|
$—
|
|
72
See accompanying notes to financial statements
UBS RMA
Statement of changes in net assets
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six
months ended
December 31, 2013
(unaudited)
|
|
|
For the
year ended
June 30, 2013
|
|
|
UBS RMA Tax-Free Fund Inc.
|
|
|
|
|
|
|
|
|
|
From operations:
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
$167,045
|
|
|
|
$345,690
|
|
|
Net realized gain
|
|
|
18,249
|
|
|
|
36,460
|
|
|
Net increase in net assets resulting from operations
|
|
|
185,294
|
|
|
|
382,150
|
|
|
Dividends and distributions to shareholders from:
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
(167,045
|
)
|
|
|
(345,690
|
)
|
|
Net realized gains
|
|
|
—
|
|
|
|
(94,102
|
)
|
|
Total dividends and distributions to shareholders
|
|
|
(167,045
|
)
|
|
|
(439,792
|
)
|
|
Net increase (decrease) in net assets from capital share transactions
|
|
|
73,234,776
|
|
|
|
(659,196,040
|
)
|
|
Cash payment from investment advisor
|
|
|
739,197
|
|
|
|
—
|
|
|
Net increase (decrease) in net assets
|
|
|
73,992,222
|
|
|
|
(659,253,682
|
)
|
|
Net assets:
|
|
|
|
|
|
|
|
|
|
Beginning of period
|
|
|
3,260,056,958
|
|
|
|
3,919,310,640
|
|
|
End of period
|
|
|
$3,334,049,180
|
|
|
|
$3,260,056,958
|
|
|
Accumulated undistributed net investment income
|
|
|
$—
|
|
|
|
$—
|
|
|
|
|
|
|
UBS RMA California Municipal Money Fund
|
|
|
|
|
|
|
|
|
|
From operations:
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
$43,105
|
|
|
|
$86,064
|
|
|
Net realized gain
|
|
|
6,798
|
|
|
|
85,635
|
|
|
Net increase in net assets resulting from operations
|
|
|
49,903
|
|
|
|
171,699
|
|
|
Dividends and distributions to shareholders from:
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
(43,105
|
)
|
|
|
(86,064
|
)
|
|
Net realized gains
|
|
|
—
|
|
|
|
(97,557
|
)
|
|
Total dividends and distributions to shareholders
|
|
|
(43,105
|
)
|
|
|
(183,621
|
)
|
|
Net increase (decrease) in net assets from beneficial interest transactions
|
|
|
29,592,051
|
|
|
|
(72,087,999
|
)
|
|
Cash payment from investment advisor
|
|
|
438,085
|
|
|
|
—
|
|
|
Net increase (decrease) in net assets
|
|
|
30,036,934
|
|
|
|
(72,099,921
|
)
|
|
Net assets:
|
|
|
|
|
|
|
|
|
|
Beginning of period
|
|
|
821,676,218
|
|
|
|
893,776,139
|
|
|
End of period
|
|
|
$851,713,152
|
|
|
|
$821,676,218
|
|
|
Accumulated undistributed net investment income
|
|
|
$—
|
|
|
|
$—
|
|
73
See accompanying notes to financial statements
UBS RMA
Statement of changes in net assets
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six
months ended
December 31, 2013
(unaudited)
|
|
|
For the
year ended
June 30, 2013
|
|
|
UBS RMA New York Municipal Money Fund
|
|
|
|
|
|
|
|
|
|
From operations:
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
$35,237
|
|
|
|
$73,314
|
|
|
Net realized gain
|
|
|
—
|
|
|
|
7
|
|
|
Net increase in net assets resulting from operations
|
|
|
35,237
|
|
|
|
73,321
|
|
|
Dividends and distributions to shareholders from:
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
(35,237
|
)
|
|
|
(73,314
|
)
|
|
Net realized gains
|
|
|
—
|
|
|
|
(57,118
|
)
|
|
Total dividends and distributions to shareholders
|
|
|
(35,237
|
)
|
|
|
(130,432
|
)
|
|
Net increase (decrease) in net assets from beneficial interest transactions
|
|
|
2,228,617
|
|
|
|
(10,944,355
|
)
|
|
Cash payment from investment advisor
|
|
|
153,594
|
|
|
|
—
|
|
|
Net increase (decrease) in net assets
|
|
|
2,382,211
|
|
|
|
(11,001,466
|
)
|
|
Net assets:
|
|
|
|
|
|
|
|
|
|
Beginning of period
|
|
|
691,840,329
|
|
|
|
702,841,795
|
|
|
End of period
|
|
|
$694,222,540
|
|
|
|
$691,840,329
|
|
|
Accumulated undistributed net investment income
|
|
|
$—
|
|
|
|
$—
|
|
74
See accompanying notes to financial statements
This page intentionally left blank.
75
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, 2013
(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 return
3
|
|
|
0.01
|
%
4
|
|
Ratios to average net assets:
|
|
|
|
|
|
Expenses before fee waivers and/or expense reimbursements
|
|
|
0.56
|
%
5
|
|
Expenses after fee waivers and/or expense reimbursements
|
|
|
0.16
|
%
5
|
|
Net investment income
|
|
|
0.01
|
%
5
|
|
Supplemental data:
|
|
|
|
|
|
Net assets, end of period (in millions)
|
|
|
$6,663
|
|
|
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 92 had no impact on the Portfolio’s total investment return and represents less than $0.0005 per share.
|
76
See accompanying notes to financial statements
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years ended June 30,
|
|
|
2013
|
|
|
2012
|
|
|
2011
1
|
|
|
2010
|
|
|
2009
|
|
|
|
$1.00
|
|
|
|
$1.00
|
|
|
|
$1.00
|
|
|
|
$1.00
|
|
|
|
$1.00
|
|
|
|
0.000
|
2
|
|
|
0.000
|
2
|
|
|
0.000
|
2
|
|
|
0.000
|
2
|
|
|
0.010
|
|
|
|
(0.000
|
)
2
|
|
|
(0.000
|
)
2
|
|
|
(0.000
|
)
2
|
|
|
(0.000
|
)
2
|
|
|
(0.010
|
)
|
|
|
(0.000
|
)
2
|
|
|
—
|
|
|
|
(0.000
|
)
2
|
|
|
(0.000
|
)
2
|
|
|
(0.000
|
)
2
|
|
|
(0.000
|
)
2
|
|
|
(0.000
|
)
2
|
|
|
(0.000
|
)
2
|
|
|
(0.000
|
)
2
|
|
|
(0.010
|
)
|
|
|
$1.00
|
|
|
|
$1.00
|
|
|
|
$1.00
|
|
|
|
$1.00
|
|
|
|
$1.00
|
|
|
|
0.01
|
%
|
|
|
0.01
|
%
|
|
|
0.01
|
%
|
|
|
0.02
|
%
|
|
|
1.06
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.55
|
%
|
|
|
0.55
|
%
|
|
|
0.64
|
%
|
|
|
0.70
|
%
|
|
|
0.71
|
%
|
|
|
0.21
|
%
|
|
|
0.17
|
%
|
|
|
0.26
|
%
|
|
|
0.26
|
%
|
|
|
0.58
|
%
|
|
|
0.01
|
%
|
|
|
0.01
|
%
|
|
|
0.01
|
%
|
|
|
0.01
|
%
|
|
|
1.02
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$11,081
|
|
|
|
$13,032
|
|
|
|
$15,379
|
|
|
|
$14,392
|
|
|
|
$16,463
|
|
77
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, 2013
(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 return
3
|
|
|
0.01
|
%
4
|
|
Ratios to average net assets:
|
|
|
|
|
|
Expenses before fee waivers and/or expense reimbursements
|
|
|
0.55
|
%
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)
|
|
|
$2,051
|
|
|
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 92 had no impact on the Portfolio’s total investment return and represents less than $0.0005 per share.
|
78
See accompanying notes to financial statements
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years ended June 30,
|
|
|
2013
|
|
|
2012
|
|
|
2011
1
|
|
|
2010
|
|
|
2009
|
|
|
|
$1.00
|
|
|
|
$1.00
|
|
|
|
$1.00
|
|
|
|
$1.00
|
|
|
|
$1.00
|
|
|
|
0.000
|
2
|
|
|
0.000
|
2
|
|
|
0.000
|
2
|
|
|
0.000
|
2
|
|
|
0.005
|
|
|
|
(0.000
|
)
2
|
|
|
(0.000
|
)
2
|
|
|
(0.000
|
)
2
|
|
|
(0.000
|
)
2
|
|
|
(0.005
|
)
|
|
|
(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
|
|
|
(0.005
|
)
|
|
|
$1.00
|
|
|
|
$1.00
|
|
|
|
$1.00
|
|
|
|
$1.00
|
|
|
|
$1.00
|
|
|
|
0.01
|
%
|
|
|
0.01
|
%
|
|
|
0.01
|
%
|
|
|
0.02
|
%
|
|
|
0.52
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.54
|
%
|
|
|
0.53
|
%
|
|
|
0.54
|
%
|
|
|
0.55
|
%
|
|
|
0.56
|
%
|
|
|
0.14
|
%
|
|
|
0.10
|
%
|
|
|
0.19
|
%
|
|
|
0.22
|
%
|
|
|
0.53
|
%
|
|
|
0.01
|
%
|
|
|
0.01
|
%
|
|
|
0.01
|
%
|
|
|
0.01
|
%
|
|
|
0.37
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$2,626
|
|
|
|
$3,782
|
|
|
|
$3,644
|
|
|
|
$3,626
|
|
|
|
$4,662
|
|
79
See accompanying notes to financial statements
UBS RMA Tax-Free Fund Inc.
Financial highlights
Selected data for a share of common stock outstanding throughout each period is presented below:
|
|
|
|
|
|
|
|
|
Six months ended
December 31, 2013
(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
|
|
|
—
|
|
|
Total dividends and distributions
|
|
|
(0.000
|
)
2
|
|
Net asset value, end of period
|
|
|
$1.00
|
|
|
Total investment return
3
|
|
|
0.01
|
%
4
|
|
Ratios to average net assets:
|
|
|
|
|
|
Expenses before fee waivers and/or expense reimbursements
|
|
|
0.59
|
%
5
|
|
Expenses after fee waivers and/or expense reimbursements
|
|
|
0.07
|
%
5
|
|
Net investment income
|
|
|
0.01
|
%
5
|
|
Supplemental data:
|
|
|
|
|
|
Net assets, end of period (in millions)
|
|
|
$3,334
|
|
|
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 92 had no impact on the Fund’s total investment return and represents less than $0.0005 per share.
|
80
See accompanying notes to financial statements
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years ended June 30,
|
|
|
2013
|
|
|
2012
|
|
|
2011
1
|
|
|
2010
|
|
|
2009
|
|
|
|
$1.00
|
|
|
|
$1.00
|
|
|
|
$1.00
|
|
|
|
$1.00
|
|
|
|
$1.00
|
|
|
|
0.000
|
2
|
|
|
0.000
|
2
|
|
|
0.000
|
2
|
|
|
0.000
|
2
|
|
|
0.007
|
|
|
|
(0.000
|
)
2
|
|
|
(0.000
|
)
2
|
|
|
(0.000
|
)
2
|
|
|
(0.000
|
)
2
|
|
|
(0.007
|
)
|
|
|
(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
|
|
|
(0.007
|
)
|
|
|
$1.00
|
|
|
|
$1.00
|
|
|
|
$1.00
|
|
|
|
$1.00
|
|
|
|
$1.00
|
|
|
|
0.01
|
%
|
|
|
0.01
|
%
|
|
|
0.01
|
%
|
|
|
0.01
|
%
|
|
|
0.71
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.59
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.59
|
%
|
|
|
0.60
|
%
|
|
|
0.14
|
%
|
|
|
0.14
|
%
|
|
|
0.24
|
%
|
|
|
0.27
|
%
|
|
|
0.57
|
%
|
|
|
0.01
|
%
|
|
|
0.01
|
%
|
|
|
0.01
|
%
|
|
|
0.01
|
%
|
|
|
0.70
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$3,260
|
|
|
|
$3,919
|
|
|
|
$4,108
|
|
|
|
$4,433
|
|
|
|
$5,861
|
|
81
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, 2013
(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
|
|
|
—
|
|
|
Total dividends and distributions
|
|
|
(0.000
|
)
2
|
|
Net asset value, end of period
|
|
|
$1.00
|
|
|
Total investment return
3
|
|
|
0.01
|
%
4
|
|
Ratios to average net assets:
|
|
|
|
|
|
Expenses before fee waivers and/or expense reimbursements
|
|
|
0.63
|
%
5
|
|
Expenses after fee waivers and/or expense reimbursements
|
|
|
0.06
|
%
5
|
|
Net investment income
|
|
|
0.01
|
%
5
|
|
Supplemental data:
|
|
|
|
|
|
Net assets, end of period (in millions)
|
|
|
$852
|
|
|
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 92 had no impact on the Fund’s total investment return and represents less than $0.0005 per share.
|
82
See accompanying notes to financial statements
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years ended June 30,
|
|
|
2013
|
|
|
2012
|
|
|
2011
1
|
|
|
2010
|
|
|
2009
|
|
|
|
$1.00
|
|
|
|
$1.00
|
|
|
|
$1.00
|
|
|
|
$1.00
|
|
|
|
$1.00
|
|
|
|
0.000
|
2
|
|
|
0.000
|
2
|
|
|
0.000
|
2
|
|
|
0.000
|
2
|
|
|
0.006
|
|
|
|
(0.000
|
)
2
|
|
|
(0.000
|
)
2
|
|
|
(0.000
|
)
2
|
|
|
(0.000
|
)
2
|
|
|
(0.006
|
)
|
|
|
(0.000
|
)
2
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.000
|
)
2
|
|
|
(0.000
|
)
2
|
|
|
(0.000
|
)
2
|
|
|
(0.000
|
)
2
|
|
|
(0.000
|
)
2
|
|
|
(0.000
|
)
2
|
|
|
(0.006
|
)
|
|
|
$1.00
|
|
|
|
$1.00
|
|
|
|
$1.00
|
|
|
|
$1.00
|
|
|
|
$1.00
|
|
|
|
0.02
|
%
|
|
|
0.01
|
%
|
|
|
0.01
|
%
|
|
|
0.02
|
%
|
|
|
0.63
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.63
|
%
|
|
|
0.62
|
%
|
|
|
0.63
|
%
|
|
|
0.64
|
%
|
|
|
0.62
|
%
|
|
|
0.13
|
%
|
|
|
0.12
|
%
|
|
|
0.23
|
%
|
|
|
0.23
|
%
|
|
|
0.54
|
%
|
|
|
0.01
|
%
|
|
|
0.01
|
%
|
|
|
0.01
|
%
|
|
|
0.01
|
%
|
|
|
0.64
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$822
|
|
|
|
$894
|
|
|
|
$883
|
|
|
|
$1,003
|
|
|
|
$1,219
|
|
83
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, 2013
(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
|
|
|
—
|
|
|
Total dividends and distributions
|
|
|
(0.000
|
)
2
|
|
Net asset value, end of period
|
|
|
$1.00
|
|
|
Total investment return
3
|
|
|
0.01
|
%
4
|
|
Ratios to average net assets:
|
|
|
|
|
|
Expenses before fee waivers and/or expense reimbursements
|
|
|
0.65
|
%
5
|
|
Expenses after fee waivers and/or expense reimbursements
|
|
|
0.07
|
%
5
|
|
Net investment income
|
|
|
0.01
|
%
5
|
|
Supplemental data:
|
|
|
|
|
|
Net assets, end of period (in millions)
|
|
|
$694
|
|
|
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 92 had no impact on the Fund’s total investment return and represents less than $0.0005 per share.
|
84
See accompanying notes to financial statements
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years ended June 30,
|
|
|
2013
|
|
|
2012
|
|
|
2011
1
|
|
|
2010
|
|
|
2009
|
|
|
|
$1.00
|
|
|
|
$1.00
|
|
|
|
$1.00
|
|
|
|
$1.00
|
|
|
|
$1.00
|
|
|
|
0.000
|
2
|
|
|
0.000
|
2
|
|
|
0.000
|
2
|
|
|
0.000
|
2
|
|
|
0.006
|
|
|
|
(0.000
|
)
2
|
|
|
(0.000
|
)
2
|
|
|
(0.000
|
)
2
|
|
|
(0.000
|
)
2
|
|
|
(0.006
|
)
|
|
|
(0.000
|
)
2
|
|
|
(0.000
|
)
2
|
|
|
(0.000
|
)
2
|
|
|
—
|
|
|
|
(0.000
|
)
2
|
|
|
(0.000
|
)
2
|
|
|
(0.000
|
)
2
|
|
|
(0.000
|
)
2
|
|
|
(0.000
|
)
2
|
|
|
(0.006
|
)
|
|
|
$1.00
|
|
|
|
$1.00
|
|
|
|
$1.00
|
|
|
|
$1.00
|
|
|
|
$1.00
|
|
|
|
0.02
|
%
|
|
|
0.01
|
%
|
|
|
0.01
|
%
|
|
|
0.01
|
%
|
|
|
0.65
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.64
|
%
|
|
|
0.65
|
%
|
|
|
0.65
|
%
|
|
|
0.65
|
%
|
|
|
0.63
|
%
|
|
|
0.14
|
%
|
|
|
0.14
|
%
|
|
|
0.24
|
%
|
|
|
0.24
|
%
|
|
|
0.55
|
%
|
|
|
0.01
|
%
|
|
|
0.01
|
%
|
|
|
0.01
|
%
|
|
|
0.01
|
%
|
|
|
0.66
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$692
|
|
|
|
$703
|
|
|
|
$760
|
|
|
|
$864
|
|
|
|
$1,090
|
|
85
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.
86
UBS RMA
Notes to financial statements (unaudited)
The Funds attempt to maintain a stable net asset value of $1.00 per share; the Funds have adopted certain investment, portfolio valuation and dividend/distribution policies in an attempt to enable them to do so. As
with any money market fund, there is no assurance, however, that the Funds will be able to maintain a stable net asset value of $1.00 per share.
The
Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) is the exclusive reference of authoritative US generally accepted accounting principles (“US GAAP”) recognized by the FASB to be
applied by nongovernmental entities. Rules and interpretive releases of the SEC under authority of federal laws are also sources of authoritative US GAAP for SEC registrants. The Funds’ financial statements are prepared in accordance with
US GAAP, which may require the use of management estimates and assumptions. Actual results could differ from those estimates. The following is a summary of significant accounting policies:
Valuation of investments
Investments are
valued at amortized cost. Periodic review and monitoring of the valuation of the securities held by each Fund is performed in an effort to ensure that amortized cost approximates market value.
US GAAP requires disclosure regarding the various inputs that are used in determining the value of the Funds’ investments. These inputs are summarized
into the three broad levels listed below:
Level 1—Unadjusted quoted prices in active markets for identical investments.
Level 2—Other significant observable inputs, including but not limited to, quoted prices for similar investments, interest rates, prepayment speeds and credit
risks.
Level 3—Unobservable inputs inclusive of the Funds’ own assumptions in determining the fair value of investments.
In accordance with the requirements of US GAAP, a fair value hierarchy has been included near the end of each Fund’s Statement of net assets.
87
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 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 become insolvent. If the seller (or seller’s guarantor, if any) becomes insolvent, a Fund may suffer delays, costs and possible losses in connection with the disposition or
retention of the collateral. Under certain circumstances, in the event of default or bankruptcy by the other party to the agreement, realization and/or retention of the collateral may be subject to legal proceedings. Each Fund may participate in
joint repurchase agreement transactions with other funds managed 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
88
UBS RMA
Notes to financial statements (unaudited)
avoid having the Fund assessed 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
89
UBS RMA
Notes to financial statements (unaudited)
administrator of the Funds. In accordance with the Advisory Contract, 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
|
|
90
UBS RMA
Notes to financial statements (unaudited)
|
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 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, 2013, Money Market Portfolio waived $56,778 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, 2013, the following Funds owed UBS Global
AM for investment advisory and administration fees, net of fee waivers and/or expense reimbursements as follows:
|
|
|
|
|
|
|
Money Market Portfolio
|
|
|
$536,515
|
|
|
U.S. Government Portfolio
|
|
|
32,751
|
|
|
RMA Tax-Free
|
|
|
6,107
|
|
At December 31, 2013, the RMA California and RMA New York Funds are owed $7,142 and $1,167, respectively, from UBS Global AM,
representing investment advisory and administration fees net of fee waivers/expense reimbursements.
In addition to the above arrangements, UBS Global
AM has undertaken to waive fees and/or reimburse expenses in the event that Fund yields fall 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,
2013, UBS Global AM voluntarily waived investment advisory and administration fees and/or reimbursed expenses as follows:
|
|
|
|
|
|
|
Money Market Portfolio
|
|
|
$10,695,018
|
|
|
U.S. Government Portfolio
|
|
|
3,806,956
|
|
|
RMA Tax-Free
|
|
|
6,178,202
|
|
|
RMA California
|
|
|
1,801,339
|
|
|
RMA New York
|
|
|
1,511,652
|
|
Such voluntarily waived amounts are not subject to future recoupment.
91
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, 2013 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.
92
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, 2013, 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
|
|
|
$1,389,100,665
|
|
|
RMA Tax-Free
|
|
|
391,212,645
|
|
|
RMA California
|
|
|
188,075,740
|
|
|
RMA New York
|
|
|
105,825,000
|
|
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
93
UBS RMA
Notes to financial statements (unaudited)
undertaken to waive fees in the event that Fund yields drop below a certain level. This undertaking is voluntary and not contractual and may be terminated at any time. At December 31, 2013,
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, 2013, UBS Global AM (US) voluntarily waived service fees as follows:
|
|
|
|
|
|
|
Money Market Portfolio
|
|
|
$6,400,172
|
|
|
U.S. Government Portfolio
|
|
|
1,721,462
|
|
|
RMA Tax-Free
|
|
|
2,503,000
|
|
|
RMA California
|
|
|
645,837
|
|
|
RMA New York
|
|
|
527,898
|
|
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, 2013, UBS Financial Services Inc. received from BNY Mellon, not the Funds, total delegated services fees as follows:
|
|
|
|
|
|
|
Money Market Portfolio
|
|
|
$814,479
|
|
|
U.S. Government Portfolio
|
|
|
74,825
|
|
|
RMA Tax-Free
|
|
|
316,914
|
|
|
RMA California
|
|
|
56,869
|
|
|
RMA New York
|
|
|
47,193
|
|
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
94
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, 2013, the Funds’ did not have any securities
on loan.
Bank line of credit
RMA Tax-Free, RMA California and RMA New York participated with certain other funds managed or advised by UBS Global AM in a $100 million committed credit facility
with State Street Bank and Trust Company (“Committed Credit Facility”), to be utilized for temporary financing until the settlement of sales or purchases of portfolio securities, the repurchase or redemption of shares of each Fund at the
request of shareholders and other temporary or emergency purposes. Under the Committed Credit Facility arrangement, each Fund had agreed to pay commitment fees, pro rata, based on the relative asset size of the funds in the Committed Credit
Facility. Interest could have been charged to each Fund based upon prevailing rates in effect at the time of borrowings. Effective November 19, 2013, RMA Tax-Free, RMA California and RMA New York no longer participate in the Committed Credit
Facility. For the period July 1, 2013 to November 18, 2013, the Funds did not borrow under the Committed Credit Facility.
95
UBS RMA
Notes to financial statements (unaudited)
Other liabilities and components of net assets
At December 31, 2013, the Funds had the
following liabilities outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends
payable
|
|
|
Other
accrued
expenses*
|
|
|
Money Market Portfolio
|
|
|
$15,429
|
|
|
|
$768,133
|
|
|
U.S. Government Portfolio
|
|
|
4,451
|
|
|
|
138,284
|
|
|
RMA Tax-Free
|
|
|
7,723
|
|
|
|
275,397
|
|
|
RMA California
|
|
|
1,970
|
|
|
|
90,220
|
|
|
RMA New York
|
|
|
1,577
|
|
|
|
84,579
|
|
|
*
|
Excludes investment advisory and administration and service fees.
|
At December 31, 2013, the components of net assets for each of the Funds were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
paid in capital
|
|
|
Accumulated
net realized gain
|
|
|
Total
net assets
|
|
|
Money Market Portfolio
|
|
|
$6,661,383,605
|
|
|
|
$1,433,412
|
|
|
|
$6,662,817,017
|
|
|
U.S. Government Portfolio
|
|
|
2,050,311,939
|
|
|
|
534,597
|
|
|
|
2,050,846,536
|
|
|
RMA Tax-Free
|
|
|
3,333,287,776
|
|
|
|
761,404
|
|
|
|
3,334,049,180
|
|
|
RMA California
|
|
|
851,243,308
|
|
|
|
469,844
|
|
|
|
851,713,152
|
|
|
RMA New York
|
|
|
694,037,519
|
|
|
|
185,021
|
|
|
|
694,222,540
|
|
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, 2013:
|
|
Money Market
Portfolio
|
|
|
U.S. Government
Portfolio
|
|
|
RMA
Tax-Free
|
|
|
Shares sold
|
|
|
21,285,750,451
|
|
|
|
5,574,886,551
|
|
|
|
7,475,799,879
|
|
|
Shares repurchased
|
|
|
(25,706,149,681
|
)
|
|
|
(6,150,426,835
|
)
|
|
|
(7,402,725,827
|
)
|
|
Dividends reinvested
|
|
|
542,095
|
|
|
|
139,729
|
|
|
|
160,724
|
|
|
Net increase (decrease) in
shares outstanding
|
|
|
(4,419,857,135
|
)
|
|
|
(575,400,555
|
)
|
|
|
73,234,776
|
|
96
UBS RMA
Notes to financial statements (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended
June 30, 2013:
|
|
Money Market
Portfolio
|
|
|
U.S. Government
Portfolio
|
|
|
RMA
Tax-Free
|
|
|
Shares sold
|
|
|
95,756,830,938
|
|
|
|
17,114,303,096
|
|
|
|
16,921,021,883
|
|
|
Shares repurchased
|
|
|
(97,708,596,475
|
)
|
|
|
(18,271,001,827
|
)
|
|
|
(17,580,641,894
|
)
|
|
Dividends reinvested
|
|
|
1,054,963
|
|
|
|
289,391
|
|
|
|
423,971
|
|
|
Net decrease in
shares outstanding
|
|
|
(1,950,710,574
|
)
|
|
|
(1,156,409,340
|
)
|
|
|
(659,196,040
|
)
|
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, 2013:
|
|
RMA
California
|
|
|
RMA
New York
|
|
|
Shares sold
|
|
|
2,282,036,902
|
|
|
|
1,671,036,856
|
|
|
Shares repurchased
|
|
|
(2,252,486,537
|
)
|
|
|
(1,668,842,266
|
)
|
|
Dividends reinvested
|
|
|
41,686
|
|
|
|
34,027
|
|
|
Net increase in
shares outstanding
|
|
|
29,592,051
|
|
|
|
2,228,617
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended
June 30, 2013:
|
|
RMA
California
|
|
|
RMA
New York
|
|
|
Shares sold
|
|
|
5,236,855,006
|
|
|
|
3,806,131,906
|
|
|
Shares repurchased
|
|
|
(5,309,122,912
|
)
|
|
|
(3,817,203,843
|
)
|
|
Dividends reinvested
|
|
|
179,907
|
|
|
|
127,582
|
|
|
Net decrease in
shares outstanding
|
|
|
(72,087,999
|
)
|
|
|
(10,944,355
|
)
|
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.
97
UBS RMA
Notes to financial statements (unaudited)
The tax character of all distributions paid to shareholders by the Money Market Portfolio and U.S. Government Portfolio during the six months ended December 31, 2013 and the fiscal year ended June 30,
2013 was ordinary income. The tax character of all distributions paid to shareholders by RMA Tax-Free, RMA California, and RMA New York will be determined at the Funds’ fiscal year ending June 30, 2014. The tax character of all
distributions paid to shareholders by RMA Tax-Free, RMA California, and RMA New York during the fiscal year ended June 30, 2013 was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended
June 30, 2013
|
|
RMA
Tax-Free
|
|
|
RMA
California
|
|
|
RMA
New York
|
|
|
Tax-exempt income
|
|
|
$345,690
|
|
|
|
$86,064
|
|
|
|
$73,314
|
|
|
Ordinary income
|
|
|
2,150
|
|
|
|
—
|
|
|
|
—
|
|
|
Long-term capital gains
|
|
|
91,952
|
|
|
|
97,557
|
|
|
|
57,118
|
|
|
Total distributions paid
|
|
|
$439,792
|
|
|
|
$183,621
|
|
|
|
$130,432
|
|
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, 2014.
As of and during the period ended December 31, 2013, the Funds did not have any liabilities for
any uncertain tax positions. The Funds recognize interest and penalties, if any, related to uncertain tax positions as income tax expense in the Statements of operations. During the six months ended December 31, 2013, the Funds did not incur
any interest or penalties.
Each of the tax years in the four year period ended June 30, 2013, remains subject to examination by the Internal
Revenue Service and state taxing authorities.
98
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 2013.
99
UBS RMA
Board approval of the investment advisory and administration contracts (unaudited)
Background
—At a meeting of the boards of UBS RMA Money Fund Inc. (“RMA Money Fund”), UBS RMA Tax-Free Fund, Inc. (“RMA Tax-Free
Fund”) and UBS Managed Municipal Trust (“Managed Municipal Trust”) on July 16-17, 2013, 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 contracts (each
an “Investment Advisory and Administration Contract” and together the “Investment Advisory and Administration Contracts”) for the funds as follows: the board of RMA Money Fund approved the continuance of the Investment Advisory
and Administration Contract between UBS Global Asset Management (Americas) Inc. (“UBS Global AM”) and RMA Money Fund with respect to UBS RMA Money Market Portfolio and UBS RMA U.S. Government Portfolio (each a “Portfolio” and
together the “Portfolios”); the board of RMA Tax-Free Fund approved the continuance of the Investment Advisory and Administration Contract between UBS Global AM and RMA Tax-Free Fund; and the board of Managed Municipal Trust approved the
continuance of the Investment Advisory and Administration Contract between UBS Global AM and Managed Municipal Trust with respect to 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”). 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. Each board received and considered a variety of information
about UBS Global AM as well as the advisory, administrative and distribution arrangements for each Fund it oversees. Independent Board Members discussed the materials initially provided by management among themselves on several occasions prior to
the scheduled board meeting, and independent legal counsel participated in several such discussions. The Independent Board Members also met in executive session with their independent legal
100
UBS RMA
Board approval of the investment advisory and administration contracts (unaudited)
counsel to review the presentation that had been made to them at the meeting. The Independent Board Members also received a memorandum from their independent legal counsel discussing the duties
of board members in considering approval of advisory, administration and distribution agreements.
In its consideration of the approval of the
Investment Advisory and Administration Contracts, each board evaluated the following factors:
Nature, extent and quality of the services under the
Investment Advisory and Administration
Contracts
—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 Contract. 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 providers of other services to the Funds, including custody, accounting and transfer agency services. 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. Each board also noted the increased compliance and regulatory requirements for money market funds in light of the changes to Rule 2a-7 under the 1940 Act.
The boards had available to them the qualifications, backgrounds and responsibilities of the senior personnel at UBS Global AM responsible for
101
UBS RMA
Board approval of the investment advisory and administration contracts (unaudited)
each Fund and had previously met with and received information regarding the person primarily responsible for the day-to-day portfolio management of each Fund and 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 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 was also noted that UBS Global AM had approximately $159 billion in assets under management as of March 31, 2013 and was part of the UBS Global Asset Management Division, which had approximately $632
billion in assets under management worldwide as of March 31, 2013. The boards were also 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 Contract.
Advisory fees and expense
ratios
—For each Fund, its board reviewed and considered the contractual advisory and administration fee (the “Contractual Management Fee”) payable by that Fund to UBS 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 overall expenses with those of funds in a group of funds selected and provided by Lipper,
102
UBS RMA
Board approval of the investment advisory and administration contracts (unaudited)
Inc. (“Lipper”), an independent provider of investment company data (the “Expense Group”).
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 was in the third quintile, its Actual Management Fee was in the
second quintile and its total expenses were in the first quintile in the Portfolio’s Expense Group for the comparison periods utilized in the Lipper report. (The first quintile represents that 20% of the funds in the Expense Group with the
lowest fees or expenses, as applicable, and the fifth quintile represents that 20% of the funds in the Expense Group with the highest fees or expenses, as applicable.)
UBS RMA U.S. Government Portfolio
The comparative Lipper information showed that the
Portfolio’s Contractual Management Fee and total expenses were in the third quintile and its Actual Management Fee was in the fifth quintile (the highest in the Expense Group) in the Portfolio’s Expense Group for the comparison periods
utilized in the Lipper report. Management noted that the approach in which waivers are applied for the Portfolio differs from the approach Lipper utilizes to reflect waivers for its peers (
i.e.
, most peers have the waivers applied toward the
management fees first while UBS Global AM applies a methodology of waiving 0.01% from management fees and 0.01% from service fees alternating between the
103
UBS RMA
Board approval of the investment advisory and administration contracts (unaudited)
two until the service fees are completely waived). Management further noted that, as a result, the Portfolio’s Actual Management Fee appears above the peer group median, but the
Portfolio’s total expenses are at the peer group median. Therefore, management noted that it believes that overall expenses are in line with peers.
UBS RMA Tax-Free Fund
The comparative Lipper information showed that the Fund’s
Contractual Management Fee and Actual Management Fee were in the third quintile and its total expenses were in the first quintile in the Fund’s Expense Group for the comparison periods utilized in the Lipper report.
UBS RMA California Municipal Money Fund and UBS RMA New York Municipal Money Fund
The comparative Lipper information showed that California Municipal Money Fund’s Contractual Management Fee was in the second quintile and its Actual Management Fee and total expenses were in the first
quintile 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 in the third quintile, its Actual Management Fee was in the second quintile and its total expenses were in the first quintile 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 Contract.
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, 2013 and (b) annualized performance information for each year in the ten-year period ended April 30, 2013. The boards were provided with a description of the methodology Lipper used to
104
UBS RMA
Board approval of the investment advisory and administration contracts (unaudited)
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 in the second quintile for the one-, three- and ten-year periods and in the third quintile for the five-year period and since
inception. (The first quintile represents that 20% of the funds in the Performance Universe with the best relative performance, and the fifth quintile represents that 20% of the funds in the Performance Universe with the worst relative performance.)
Management noted that the Portfolio’s performance for the five-year period and since inception was close to the Performance Universe median. Based on its review, the board concluded that the Portfolio’s performance was acceptable.
UBS RMA U.S. Government Portfolio
The comparative Lipper information showed that the Portfolio’s performance was in the first quintile for the one-year period, in the second quintile for the
three-year period, in the fourth quintile for the five-year period and in the third quintile 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 performance was acceptable.
UBS RMA Tax-Free Fund
The comparative Lipper information showed that the Fund’s performance was in the second quintile for the one-year period, in the third quintile for the
three-year period, in the fifth quintile for the five-year period and since inception and in the fourth quintile for the ten-year period. 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 for the one-year period. Based on its review and management’s explanation, the board concluded that the
Fund’s performance was acceptable.
105
UBS RMA
Board approval of the investment advisory and administration contracts (unaudited)
UBS RMA California Municipal Money Fund and UBS RMA New York Municipal Money Fund
The comparative Lipper information showed that California Municipal Money Fund’s performance was in the second quintile for the one-year period, in the third quintile for the three-year period and in the
fourth quintile for the five- and ten-year periods and since inception.
The comparative Lipper information showed that New York Municipal Money
Fund’s performance was in the first quintile for the one-year period, in the fourth quintile for the three-year period and in the fifth quintile 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 it
maintained larger allocations to overnight liquidity debt compared to its Performance Universe. Management also noted each Municipal Fund’s improved performance for the one-year period. 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 there have been economies of scale with respect to the management of each Fund, whether each Fund has appropriately benefited from any economies of
scale, and whether there is potential for realization of any further economies of scale. Each board considered whether economies of scale in the provision of services to each Fund were being passed along to the shareholders.
106
UBS RMA
Board approval of the investment advisory and administration contracts (unaudited)
Each board noted that each Fund’s Contractual Management Fee contained breakpoints. The relevant boards considered that each Fund’s asset level exceeded
the breakpoints and, as a result, each of these Funds and its shareholders realized certain economies of scale because the total expense ratio of each such Fund was lower than if no breakpoints had been in place. Accordingly, each board determined
that economies of scale were passed on to shareholders in the form of breakpoints to the management fee for each of these Funds. Each board also noted that to the extent a Fund’s assets have increased over time, it has realized other economies
of scale as certain expenses, such as fees for board members, auditors and legal fees, become a smaller percentage of overall assets.
Generally, in
light of UBS Global AM’s profitability data, the Contractual Management Fee and the 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 Contract for each Fund overseen by it. In making their decisions, the boards identified no single factor as being
determinative in approving the Investment Advisory and Administration Contracts. 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 Contracts in private sessions with their independent legal counsel at which no representatives of UBS Global AM were present.
107
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108
|
|
|
|
|
Board Members
|
|
|
|
|
|
|
Richard Q. Armstrong
Chairman
Alan S. Bernikow
Richard R. Burt
|
|
Meyer Feldberg
Bernard H. Garil
Heather R. Higgins
|
|
|
|
|
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 2014. All rights reserved.
UBS Global Asset Management (Americas) Inc.
1285 Avenue of the Americas
New York, New York 10019-6028
S301
|
|
|
|
|
|
|
|
|
Money Market Fund
|
UBS Retirement Money Fund
Semiannual Report
December 31, 2013
UBS Retirement Money Fund
February 14, 2014
Dear shareholder,
We present you with the semiannual report for UBS Retirement Money Fund (the
“Fund”) for the six months ended December 31, 2013.
Performance
As of December 31, 2013, the Fund’s seven-day yield was 0.01% (after fee waivers and/or expense reimbursements), unchanged from what it was on
June 30, 2013. (For more on the Fund’s performance, refer to “Performance and portfolio characteristics at a glance” on page 7.)
In
December 2013, the Federal Reserve Board (the “Fed”) announced that it would begin tapering its asset purchase program in January 2014. However, the Fed continued to hold the federal funds rate (the federal funds rate, or the “fed
funds rate,” which is the rate banks charge one another for funds they borrow on an overnight basis) within a historically low range between 0% and 0.25%. (For more details on the Fed’s actions, see below.) This continued to depress yields
on a wide range of short-term investments and kept the yields of the securities in which the Fund invests extremely low. As a result, the Fund’s yield remained low during the reporting period.
An interview with Portfolio Manager Robert Sabatino
|
Q.
|
How would you describe the economic environment during the reporting period?
|
|
A.
|
Despite a number of headwinds, including the sequestration, higher taxes and rising longer-term interest rates, the overall US economy continued to expand during the reporting
period. Looking back, the Commerce Department reported that gross domestic product (“GDP”) growth in the US was a tepid 1.1% during the first quarter of 2013. The economy then gained some traction, as GDP grew
|
UBS Retirement Money Fund
Investment goal:
Current income consistent
with liquidity and conservation of capital
Portfolio Manager
Robert Sabatino
UBS Global Asset Management (Americas) Inc.
Commencement:
July 2, 1988
1
UBS Retirement Money Fund
|
|
2.5% and 4.1% during the second and third quarters of 2013, respectively. Third quarter GDP was the highest reading since the fourth quarter of 2011. The Commerce Department’s initial
estimate for fourth quarter 2013 GDP growth was 3.2%.
1
|
|
Q.
|
How did the Fed react to the economic environment?
|
|
A
.
|
The Fed took a number of actions during the reporting period. At his press conference following the Fed’s meeting in June 2013, Fed Chairman Ben Bernanke signaled that the
Fed might moderate the monthly pace of its bond purchases later in the year.
|
This triggered a substantial sell-off in the
fixed income market, as Treasury yields rose sharply and bond prices declined. At its meeting that concluded on September 18, 2013, the Fed surprised the market by delaying the tapering of its asset purchases.
At its final meeting of 2013, in December, the Fed announced that it would begin paring back its monthly asset purchases, saying “Beginning in
January, the Committee will add to its holdings of agency mortgage-backed securities at a [reduced] pace of $35 billion per month rather than $40 billion per month, and will add to its holdings of longer-term Treasury securities at a [reduced] pace
of $40 billion per month rather than $45 billion per month.”
At its meeting that concluded on January 29,
2014, the Fed said it would further taper its asset purchases. Beginning in February 2014, the central bank will scale back its monthly purchases to a total of $65 billion ($30 billion of agency mortgage-backed securities and $35 billion of
longer-term Treasury securities).
2
|
Q.
|
How did you position the Fund during the reporting period?
|
|
A.
|
We tactically adjusted the Fund’s weighted average maturity (WAM) throughout the six-month review period. When the reporting period began, the Fund had a WAM of 43 days. As
of December 31, 2013, the Fund’s WAM was 41 days.
|
|
1
|
Based on the Commerce Department’s third estimate announced on January 30, 2014, after the reporting period had ended.
|
|
2
|
The Fed’s decision to further taper was made at its meeting that concluded on January 29, 2014, after the reporting period had ended.
|
2
UBS Retirement Money Fund
|
Q.
|
What level of portfolio diversification did you maintain during the reporting period?
|
|
A.
|
At the issuer level, we maintained a high level of diversification over the six-month period, investing in smaller positions with the goal of reducing risk and keeping the Fund
highly liquid. We typically purchased up to 3% in single nongovernment issuers throughout the reporting period. (The Fund is generally able to hold up to 5% in any one issuer, subject to certain exceptions.)
|
|
Q.
|
What types of securities did you emphasize over the period?
|
|
A.
|
Several adjustments were made to the Fund’s sector positioning during the six-month period. We significantly increased the Fund’s exposure to repurchase agreements and,
to lesser extents, its exposure to certificates of deposit, short-term corporate obligations and non-US government agency obligations. Conversely, we reduced our allocations to US government and agency obligations, bank notes and commercial paper.
(Repurchase agreements are transactions in which the seller of a security agrees to buy it back at a predetermined time and price or upon demand.)
|
|
Q.
|
What factors do you believe will affect the Fund over the coming months?
|
|
A.
|
Despite the Fed beginning to taper its asset purchases in January 2014, we do not expect the federal funds rate to be raised from its historically low level until at least 2015.
Turning to the economy, it is clearly on better footing than was the case a year ago. In particular, the housing market has shown signs of improvement and the unemployment rate has moderated. That said, we will continue to closely monitor incoming
economic data to determine the impact of higher interest rates on consumer and business spending. Against this backdrop, we believe that the economy will continue to expand, albeit at a relatively modest pace. We anticipate continuing to manage the
Fund focusing on risk and liquidity.
|
Continuing regulatory uncertainty has cast a shadow over money market funds for some
time now, and will likely continue to do so. The US Securities and Exchange Commission (the “SEC”) issued proposed new regulations for money market funds on June 5,
3
UBS Retirement Money Fund
2013, requesting comments on numerous issues. According to its website, the SEC received over a thousand comments on its proposals. At this time it is impossible to predict the final version of
these regulations (which are expected to be promulgated in 2014), but the SEC’s proposing release envisions a transition period ranging up to several years.
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.
Sincerely,
|
|
|
|
|
|
|
|
Mark E. Carver
President
UBS Retirement Money Fund
Managing Director
UBS Global Asset Management (Americas) Inc.
|
|
Robert Sabatino
Portfolio
Manager
UBS Retirement Money Fund
Managing
Director
UBS Global Asset Management (Americas) Inc.
|
This letter is intended to assist shareholders in understanding how the Fund performed during the six months ended
December 31, 2013. The views and opinions in the letter were current as of February 14, 2014. 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 Fund’s future investment intent. We
encourage you to consult your financial advisor regarding your personal investment program.
|
*
|
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.
|
4
UBS Retirement Money Fund
Understanding your Fund’s expenses (unaudited)
As a shareholder of the Fund, you incur ongoing costs, including management fees, service fees (12b-1 fees) and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars)
of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example below is based on an
investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2013 to December 31, 2013.
Actual expenses
The first line in the table
below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over a period. Simply divide your account value by
$1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading “Expenses paid during period” to estimate the expenses you paid on your account during this
period.
Hypothetical example for comparison purposes
The second line in the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year
before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate your actual ending account balance or expenses you paid for the period. You may use this information to compare the
ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
5
UBS Retirement Money Fund
Understanding your Fund’s expenses (unaudited) (concluded)
Please note that the expenses shown in the table are meant to highlight your ongoing
costs. Therefore, the second line in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds, if those other funds impose transactional costs—for example, exchange
fees. In addition, if those transactional costs were included, your costs for those other funds would have been higher.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning
account value
July 1, 2013
|
|
|
Ending
account value
1
December 31,
2013
|
|
|
Expenses paid
during period
2
07/01/13 to
12/31/13
|
|
|
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
|
|
|
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).
|
6
UBS Retirement Money Fund
Performance and portfolio characteristics at a glance (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yields and characteristics
|
|
12/31/13
|
|
|
06/30/13
|
|
|
12/31/12
|
|
|
Seven-day current yield after fee waivers and/or expense
reimbursements
1
|
|
|
0.01
|
%
|
|
|
0.01
|
%
|
|
|
0.01
|
%
|
|
Seven-day effective yield after fee waivers and/or expense
reimbursements
1
|
|
|
0.01
|
|
|
|
0.01
|
|
|
|
0.01
|
|
|
Seven-day current yield before fee waivers and/or expense
reimbursements
1
|
|
|
(0.54
|
)
|
|
|
(0.47
|
)
|
|
|
(0.42
|
)
|
|
Seven-day effective yield before fee waivers and/or expense
reimbursements
1
|
|
|
(0.54
|
)
|
|
|
(0.47
|
)
|
|
|
(0.42
|
)
|
|
Weighted average maturity
2
|
|
|
41 days
|
|
|
|
43 days
|
|
|
|
47 days
|
|
|
Net assets (bn)
|
|
|
$1.0
|
|
|
|
$1.3
|
|
|
|
$1.3
|
|
|
Portfolio
composition
3
|
|
12/31/13
|
|
|
06/30/13
|
|
|
12/31/12
|
|
|
Commercial paper
|
|
|
49.0
|
%
|
|
|
53.8
|
%
|
|
|
52.5
|
%
|
|
Repurchase agreements
|
|
|
23.1
|
|
|
|
10.1
|
|
|
|
14.9
|
|
|
Certificates of deposit
|
|
|
17.3
|
|
|
|
16.1
|
|
|
|
15.2
|
|
|
US government and agency obligations
|
|
|
8.8
|
|
|
|
16.8
|
|
|
|
17.0
|
|
|
Short-term corporate obligations
|
|
|
1.3
|
|
|
|
—
|
|
|
|
0.4
|
|
|
Non-US government agency
|
|
|
0.5
|
|
|
|
—
|
|
|
|
—
|
|
|
Bank notes
|
|
|
—
|
|
|
|
2.3
|
|
|
|
—
|
|
|
Other assets less liabilities
|
|
|
0.0
|
4
|
|
|
0.9
|
|
|
|
(0.0
|
)
4
|
|
Total
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
1
|
Yields will fluctuate and reflect fee waivers and/or expense reimbursements, if any, unless otherwise noted. Performance data quoted represents past performance.
Past performance does not guarantee future results. Current performance may be higher or lower than the performance data quoted.
|
|
2
|
The Fund’s portfolio is actively managed and its weighted average maturity will differ over time.
|
|
3
|
Weightings represent percentages of the Fund’s net assets as of the dates indicated. The Fund’s portfolio is actively managed and its composition will
vary over time.
|
|
4
|
Represents less than 0.05% of net assets as of the date indicated.
|
An investment in UBS Retirement Money Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your
investment at $1.00 per share, it is possible to lose money by investing in the Fund.
Not FDIC Insured. May lose value. No Bank guarantee.
7
UBS Retirement Money Fund
Statement of net assets—December 31, 2013 (unaudited)
|
|
|
|
|
|
|
|
|
|
|
Security description
|
|
Face
amount
|
|
|
Value
|
|
|
US government and agency obligations—8.75%
|
|
|
Federal Farm Credit Bank
0.050%, due 01/02/14
1
|
|
|
$5,000,000
|
|
|
|
$4,999,993
|
|
|
Federal Home Loan Bank
|
|
|
|
|
|
|
|
|
|
0.060%, due 01/23/14
1
|
|
|
10,000,000
|
|
|
|
9,999,633
|
|
|
0.060%, due 01/29/14
1
|
|
|
12,000,000
|
|
|
|
11,999,440
|
|
|
0.125%, due 03/27/14
|
|
|
6,500,000
|
|
|
|
6,499,288
|
|
|
Federal Home Loan Mortgage Corp.*
1.375%, due 02/25/14
|
|
|
10,000,000
|
|
|
|
10,018,433
|
|
|
Federal National Mortgage Association*
0.120%, due 04/16/14
1
|
|
|
10,000,000
|
|
|
|
9,996,500
|
|
|
US Treasury Notes
|
|
|
|
|
|
|
|
|
|
1.000%, due 01/15/14
|
|
|
22,000,000
|
|
|
|
22,007,624
|
|
|
2.625%, due 07/31/14
|
|
|
12,000,000
|
|
|
|
12,171,906
|
|
|
Total US government and agency obligations
(cost—$87,692,817)
|
|
|
|
|
|
|
87,692,817
|
|
|
Certificates of deposit—17.26%
|
|
|
|
|
|
|
|
|
|
Banking-non-US—14.07%
|
|
|
|
|
|
|
|
|
|
Bank of Montreal
0.190%, due 01/15/14
|
|
|
13,000,000
|
|
|
|
13,000,000
|
|
|
Bank of Nova Scotia
0.256%, due 01/21/14
2
|
|
|
3,000,000
|
|
|
|
3,000,000
|
|
|
Credit Industriel et Commercial
0.190%, due 02/13/14
|
|
|
11,000,000
|
|
|
|
11,000,000
|
|
|
0.200%, due 03/04/14
|
|
|
12,000,000
|
|
|
|
12,000,000
|
|
|
Credit Suisse
0.190%, due 04/03/14
|
|
|
10,000,000
|
|
|
|
10,000,000
|
|
|
Mitsubishi UFJ Trust & Banking Corp.
0.210%, due 01/24/14
|
|
|
12,000,000
|
|
|
|
12,000,000
|
|
|
Mizuho Bank Ltd.
0.210%, due 01/03/14
|
|
|
21,000,000
|
|
|
|
21,000,000
|
|
|
National Australia Bank Ltd.
0.275%, due 04/07/14
2
|
|
|
5,000,000
|
|
|
|
5,000,000
|
|
|
Natixis
0.225%, due
01/29/14
2
|
|
|
7,000,000
|
|
|
|
7,000,000
|
|
|
Nordea Bank Finland
0.290%, due 11/20/14
|
|
|
5,000,000
|
|
|
|
5,000,000
|
|
8
UBS Retirement Money Fund
Statement of net assets—December 31, 2013 (unaudited)
|
|
|
|
|
|
|
|
|
|
|
Security description
|
|
Face
amount
|
|
|
Value
|
|
|
Certificates of deposit—(concluded)
|
|
|
|
|
|
|
|
|
|
Banking-non-US—(concluded)
|
|
|
|
|
|
|
|
|
|
Norinchukin Bank Ltd.
0.150%, due 01/14/14
|
|
|
$7,000,000
|
|
|
|
$7,000,000
|
|
|
Rabobank Nederland NV
0.360%, due 06/11/14
|
|
|
5,000,000
|
|
|
|
5,000,000
|
|
|
Sumitomo Mitsui Banking Corp.
0.070%, due 01/07/14
|
|
|
15,000,000
|
|
|
|
15,000,000
|
|
|
0.210%, due 03/10/14
|
|
|
15,000,000
|
|
|
|
15,000,000
|
|
|
|
|
|
|
|
|
|
141,000,000
|
|
|
Banking-US—3.19%
|
|
|
|
|
|
|
|
|
|
Bank of America N.A.
0.160%, due 02/13/14
|
|
|
12,000,000
|
|
|
|
12,000,000
|
|
|
JPMorgan Chase & Co.
0.380%, due 12/04/14
|
|
|
5,000,000
|
|
|
|
5,000,000
|
|
|
Wells Fargo Bank N.A.
0.210%, due 06/09/14
|
|
|
15,000,000
|
|
|
|
15,000,000
|
|
|
|
|
|
|
|
|
|
32,000,000
|
|
|
Total certificates of deposit (cost—$173,000,000)
|
|
|
|
|
|
|
173,000,000
|
|
|
Commercial paper
1
—49.05%
|
|
|
|
|
|
|
|
|
|
Asset backed-auto & truck—0.32%
|
|
|
|
|
|
|
|
|
|
FCAR Owner Trust II
0.160%, due 02/04/14
|
|
|
3,223,000
|
|
|
|
3,222,513
|
|
|
Asset backed-miscellaneous—19.91%
|
|
|
|
|
|
|
|
|
|
Atlantic Asset Securitization LLC
|
|
|
|
|
|
|
|
|
|
0.110%, due 01/24/14
|
|
|
10,000,000
|
|
|
|
9,999,297
|
|
|
0.150%, due 01/21/14
|
|
|
8,000,000
|
|
|
|
7,999,333
|
|
|
0.150%, due 01/14/14
|
|
|
10,000,000
|
|
|
|
9,999,458
|
|
|
Cancara Asset Securitisation LLC
|
|
|
|
|
|
|
|
|
|
0.190%, due 02/11/14
|
|
|
10,000,000
|
|
|
|
9,997,836
|
|
|
0.190%, due 01/30/14
|
|
|
4,000,000
|
|
|
|
3,999,388
|
|
|
0.190%, due 01/22/14
|
|
|
10,000,000
|
|
|
|
9,998,892
|
|
|
Chariot Funding LLC
0.230%, due 04/29/14
|
|
|
16,618,000
|
|
|
|
16,605,472
|
|
|
Ciesco LLC
0.230%, due 02/03/14
3,4
|
|
|
9,000,000
|
|
|
|
9,000,000
|
|
9
UBS Retirement Money Fund
Statement of net assets—December 31, 2013 (unaudited)
|
|
|
|
|
|
|
|
|
|
|
Security description
|
|
Face
amount
|
|
|
Value
|
|
|
Commercial paper
1
—(continued)
|
|
|
|
|
|
|
|
|
|
Asset backed-miscellaneous—(concluded)
|
|
|
|
|
|
|
|
|
|
Gotham Funding Corp.
0.160%, due 01/06/14
|
|
|
$4,000,000
|
|
|
|
$3,999,911
|
|
|
Liberty Street Funding LLC
0.160%, due 02/06/14
|
|
|
10,000,000
|
|
|
|
9,998,400
|
|
|
LMA Americas LLC
0.170%, due 01/23/14
|
|
|
20,000,000
|
|
|
|
19,997,922
|
|
|
Old Line Funding LLC
|
|
|
|
|
|
|
|
|
|
0.200%, due 03/17/14
|
|
|
7,000,000
|
|
|
|
6,997,083
|
|
|
0.230%, due 04/15/14
|
|
|
7,000,000
|
|
|
|
6,995,349
|
|
|
Regency Markets No. 1 LLC
|
|
|
|
|
|
|
|
|
|
0.140%, due 01/21/14
|
|
|
15,000,000
|
|
|
|
14,998,833
|
|
|
0.140%, due 01/17/14
|
|
|
8,000,000
|
|
|
|
7,999,502
|
|
|
Sheffield Receivables Corp.
|
|
|
|
|
|
|
|
|
|
0.180%, due 03/11/14
|
|
|
10,000,000
|
|
|
|
9,996,550
|
|
|
0.170%, due 03/04/14
|
|
|
3,000,000
|
|
|
|
2,999,122
|
|
|
Thunder Bay Funding LLC
0.230%, due 06/04/14
|
|
|
8,000,000
|
|
|
|
7,992,129
|
|
|
Victory Receivables Corp.
|
|
|
|
|
|
|
|
|
|
0.150%, due 01/28/14
|
|
|
15,000,000
|
|
|
|
14,998,313
|
|
|
0.130%, due 01/23/14
|
|
|
10,000,000
|
|
|
|
9,999,206
|
|
|
0.140%, due 01/10/14
|
|
|
5,000,000
|
|
|
|
4,999,825
|
|
|
|
|
|
|
|
|
|
199,571,821
|
|
|
Banking-non-US—7.98%
|
|
|
|
|
|
|
|
|
|
Caisse Centrale Desjardins
|
|
|
|
|
|
|
|
|
|
0.180%, due 01/13/14
|
|
|
15,000,000
|
|
|
|
14,999,100
|
|
|
0.170%, due 03/05/14
|
|
|
15,000,000
|
|
|
|
14,995,538
|
|
|
DBS Bank Ltd.
0.240%, due 04/01/14
|
|
|
10,000,000
|
|
|
|
9,994,000
|
|
|
0.240%, due 04/23/14
|
|
|
11,000,000
|
|
|
|
10,991,787
|
|
|
Mizuho Funding LLC
0.200%, due 02/05/14
|
|
|
13,000,000
|
|
|
|
12,997,472
|
|
|
Oversea-Chinese Banking Corp. Ltd.
0.210%, due 01/03/14
|
|
|
10,000,000
|
|
|
|
9,999,883
|
|
|
Westpac Securities NZ Ltd.
0.329%, due 01/02/14
2,3
|
|
|
6,000,000
|
|
|
|
6,000,000
|
|
|
|
|
|
|
|
|
|
79,977,780
|
|
10
UBS Retirement Money Fund
Statement of net assets—December 31, 2013 (unaudited)
|
|
|
|
|
|
|
|
|
|
|
Security description
|
|
Face
amount
|
|
|
Value
|
|
|
Commercial paper
1
—(concluded)
|
|
|
|
|
|
|
|
|
|
Banking-US—11.67%
|
|
|
|
|
|
|
|
|
|
Bedford Row Funding Corp.
0.280%, due 10/09/14
|
|
|
$5,000,000
|
|
|
|
$4,989,072
|
|
|
BNP Paribas Finance, Inc.
|
|
|
|
|
|
|
|
|
|
0.230%, due 03/03/14
|
|
|
10,000,000
|
|
|
|
9,996,103
|
|
|
0.200%, due 03/06/14
|
|
|
15,000,000
|
|
|
|
14,994,667
|
|
|
Erste Finance LLC
0.160%, due 01/02/14
|
|
|
19,000,000
|
|
|
|
18,999,916
|
|
|
ING (US) Funding LLC
|
|
|
|
|
|
|
|
|
|
0.190%, due 03/10/14
|
|
|
20,000,000
|
|
|
|
19,992,822
|
|
|
0.185%, due 02/12/14
|
|
|
10,000,000
|
|
|
|
9,997,842
|
|
|
Northern Pines Funding LLC
|
|
|
|
|
|
|
|
|
|
0.210%, due 03/28/14
|
|
|
13,000,000
|
|
|
|
12,993,478
|
|
|
0.250%, due 03/06/14
|
|
|
15,000,000
|
|
|
|
14,993,333
|
|
|
PNC Bank N.A.
0.240%, due 02/13/14
4
|
|
|
10,000,000
|
|
|
|
10,000,000
|
|
|
|
|
|
|
|
|
|
116,957,233
|
|
|
Energy-integrated—2.99%
|
|
|
|
|
|
|
|
|
|
CNPC Finance HK Ltd.
|
|
|
|
|
|
|
|
|
|
0.300%, due 02/07/14
|
|
|
15,000,000
|
|
|
|
14,995,375
|
|
|
0.300%, due 01/07/14
|
|
|
15,000,000
|
|
|
|
14,999,250
|
|
|
|
|
|
|
|
|
|
29,994,625
|
|
|
Finance-captive automotive—2.99%
|
|
|
|
|
|
|
|
|
|
Toyota Motor Credit Corp.
|
|
|
|
|
|
|
|
|
|
0.170%, due 01/14/14
|
|
|
10,000,000
|
|
|
|
9,999,386
|
|
|
0.200%, due 04/16/14
|
|
|
5,000,000
|
|
|
|
4,997,083
|
|
|
0.204%, due 01/24/14
2
|
|
|
5,000,000
|
|
|
|
5,000,000
|
|
|
0.210%, due 02/26/14
|
|
|
10,000,000
|
|
|
|
9,996,734
|
|
|
|
|
|
|
|
|
|
29,993,203
|
|
|
Insurance-life—3.19%
|
|
|
|
|
|
|
|
|
|
MetLife Short Term Funding LLC
0.110%, due 01/14/14
|
|
|
20,000,000
|
|
|
|
19,999,205
|
|
|
Prudential Funding PLC
0.210%, due 01/22/14
|
|
|
12,000,000
|
|
|
|
11,998,530
|
|
|
|
|
|
|
|
|
|
31,997,735
|
|
|
Total commercial paper (cost—$491,714,910)
|
|
|
|
|
|
|
491,714,910
|
|
11
UBS Retirement Money Fund
Statement of net assets—December 31, 2013 (unaudited)
|
|
|
|
|
|
|
|
|
|
|
Security description
|
|
Face
amount
|
|
|
Value
|
|
|
Short-term corporate obligation—1.30%
|
|
|
|
|
|
|
|
|
|
Banking-non-US—1.30%
|
|
|
|
|
|
|
|
|
|
Barclays Bank PLC
0.330%, due 01/02/14
2,5
(cost—$13,000,000)
|
|
|
$13,000,000
|
|
|
|
$13,000,000
|
|
|
Non-US government agency—0.50%
|
|
|
|
|
|
|
|
|
|
Supranational—0.50%
|
|
|
|
|
|
|
|
|
|
Export Development Canada
0.140%, due 01/02/14
2,3
(cost—$5,000,000)
|
|
|
5,000,000
|
|
|
|
5,000,000
|
|
|
Repurchase agreements—23.12%
|
|
|
|
|
|
|
|
|
|
Repurchase agreement dated 12/31/13 with Barclays Capital, Inc., 0.010% due 01/02/14,
collateralized by $86,917,300 US Treasury Note, 2.375% due 12/31/20; (value—$86,700,007); proceeds: $85,000,047
|
|
|
85,000,000
|
|
|
|
85,000,000
|
|
|
Repurchase agreement dated 12/31/13 with BNP Paribas Securities Corp. 0.010% due 01/02/14,
collateralized by $30,626,000 Federal Farm Credit Bank, 0.188% due 10/03/16; (value—$30,600,471); proceeds: $30,000,017
|
|
|
30,000,000
|
|
|
|
30,000,000
|
|
|
Repurchase agreement dated 12/31/13 with Deutsche Bank Securities, Inc., 0.020% due 01/02/14,
collateralized by $18,580,000 US Treasury Note, 1.750% due 05/15/23; (value—$16,830,020); proceeds: $16,500,018
|
|
|
16,500,000
|
|
|
|
16,500,000
|
|
|
Repurchase agreement dated 12/31/13 with Goldman Sachs & Co., Inc., 0.005% due
01/02/14, collateralized by $98,658,000 Federal Farm Credit Bank, 0.167% to 0.214% due 01/20/16 to 02/24/16 and $3,325,308 US Treasury Bond Strip, zero coupon due 08/15/15; (value—$102,000,000); proceeds: $100,000,028
|
|
|
100,000,000
|
|
|
|
100,000,000
|
|
|
Repurchase agreement dated 12/31/13 with State Street Bank and Trust Co., 0.000% due 01/02/14,
collateralized by $293,044 Federal National Mortgage Association Corp. obligations, 2.110% due 11/07/22; (value—$265,329); proceeds: $260,000
|
|
|
260,000
|
|
|
|
260,000
|
|
|
Total repurchase agreements (cost—$231,760,000)
|
|
|
|
231,760,000
|
|
12
UBS Retirement Money Fund
Statement of net assets—December 31, 2013 (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Value
|
|
|
Total investments (cost—$1,002,167,727 which approximates cost for federal income tax purposes)—99.98%
|
|
|
|
|
$1,002,167,727
|
|
|
Other assets in excess of liabilities—0.02%
|
|
|
|
|
174,276
|
|
|
Net assets (applicable to 1,002,340,180 shares of common stock outstanding equivalent to $1.00 per share)—100.00%
|
|
|
|
|
$1,002,342,003
|
|
Fair valuation summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2013 in valuing the Fund’s investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unadjusted
quoted prices
in active
markets for
identical
investments
(Level
1)
|
|
|
Other
significant
observable
inputs
(Level 2)
|
|
|
Unobservable
inputs
(Level 3)
|
|
|
Total
|
|
|
US government and agency obligations
|
|
$
|
—
|
|
|
$
|
87,692,817
|
|
|
$
|
—
|
|
|
$
|
87,692,817
|
|
|
Certificates of deposit
|
|
|
—
|
|
|
|
173,000,000
|
|
|
|
—
|
|
|
|
173,000,000
|
|
|
Commercial paper
|
|
|
—
|
|
|
|
491,714,910
|
|
|
|
—
|
|
|
|
491,714,910
|
|
|
Short-term corporate obligation
|
|
|
—
|
|
|
|
13,000,000
|
|
|
|
—
|
|
|
|
13,000,000
|
|
|
Non-US government agency
|
|
|
—
|
|
|
|
5,000,000
|
|
|
|
—
|
|
|
|
5,000,000
|
|
|
Repurchase agreements
|
|
|
—
|
|
|
|
231,760,000
|
|
|
|
—
|
|
|
|
231,760,000
|
|
|
Total
|
|
$
|
—
|
|
|
$
|
1,002,167,727
|
|
|
$
|
—
|
|
|
$
|
1,002,167,727
|
|
At December 31, 2013, there were no transfers between Level 1 and Level 2.
13
UBS Retirement Money Fund
Statement of net assets—December 31, 2013 (unaudited)
Issuer breakdown by country or territory of origin
|
|
|
|
|
|
|
|
|
Percentage of
total investments
|
|
|
United States
|
|
|
68.9
|
%
|
|
Japan
|
|
|
11.3
|
|
|
Canada
|
|
|
5.1
|
|
|
Singapore
|
|
|
3.1
|
|
|
France
|
|
|
3.0
|
|
|
China
|
|
|
3.0
|
|
|
United Kingdom
|
|
|
2.5
|
|
|
Australia
|
|
|
1.1
|
|
|
Switzerland
|
|
|
1.0
|
|
|
Finland
|
|
|
0.5
|
|
|
Netherlands
|
|
|
0.5
|
|
|
Total
|
|
|
100.0
|
%
|
Portfolio footnotes
|
*
|
On September 7, 2008, the Federal Housing Finance Agency placed the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation into
conservatorship, and the US Treasury guaranteed the debt issued by those organizations.
|
|
1
|
Rates shown are the discount rates at date of purchase.
|
|
2
|
Variable or floating rate security. The interest rate shown is the current rate as of December 31, 2013 and changes periodically. The maturity date reflects
earlier of reset date or stated maturity date.
|
|
3
|
Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities, which represent 2.00% of net assets as of
December 31, 2013, are considered liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers.
|
|
4
|
Rate represents stated coupon rate.
|
|
5
|
Illiquid security representing 1.30% of net assets as of December 31, 2013.
|
14
See accompanying notes to financial statements
UBS Retirement Money Fund
Statement of operations
|
|
|
|
|
|
|
|
|
For the six
months ended
December 31, 2013
(unaudited)
|
|
|
|
|
|
Investment income:
|
|
|
|
|
|
Interest
|
|
|
$968,811
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
Investment advisory and administration fees
|
|
|
2,415,798
|
|
|
Service fees
|
|
|
922,568
|
|
|
Transfer agency and related services fees
|
|
|
487,776
|
|
|
Professional fees
|
|
|
64,610
|
|
|
Custody and accounting fees
|
|
|
57,183
|
|
|
Reports and notices to shareholders
|
|
|
40,658
|
|
|
State registration fees
|
|
|
36,448
|
|
|
Insurance fees
|
|
|
16,515
|
|
|
Directors’ fees
|
|
|
13,625
|
|
|
Other expenses
|
|
|
16,984
|
|
|
|
|
|
4,072,165
|
|
|
Fee waivers and/or expense reimbursements by investment advisor/administrator/distributor
|
|
|
(3,164,920
|
)
|
|
Net expenses
|
|
|
907,245
|
|
|
Net investment income
|
|
|
61,566
|
|
|
Net realized loss
|
|
|
(75
|
)
|
|
Net increase in net assets resulting from operations
|
|
|
$61,491
|
|
15
See accompanying notes to financial statements
UBS Retirement Money Fund
Statement of changes in net assets
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six
months ended
December 31, 2013
(unaudited)
|
|
|
For the
year ended
June 30, 2013
|
|
|
From operations:
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
$61,566
|
|
|
|
$130,383
|
|
|
Net realized gain (loss)
|
|
|
(75
|
)
|
|
|
425
|
|
|
Net increase in net assets resulting from operations
|
|
|
61,491
|
|
|
|
130,808
|
|
|
Dividends to shareholders from:
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
(61,566
|
)
|
|
|
(130,383
|
)
|
|
Net decrease in net assets from capital stock transactions
|
|
|
(307,764,739
|
)
|
|
|
(15,907,031
|
)
|
|
Net decrease in net assets
|
|
|
(307,764,814
|
)
|
|
|
(15,906,606
|
)
|
|
Net assets:
|
|
|
|
|
|
|
|
|
|
Beginning of period
|
|
|
1,310,106,817
|
|
|
|
1,326,013,423
|
|
|
End of period
|
|
|
$1,002,342,003
|
|
|
|
$1,310,106,817
|
|
|
Accumulated undistributed net investment income
|
|
|
$—
|
|
|
|
$—
|
|
16
See accompanying notes to financial statements
This page intentionally left blank.
17
UBS Retirement Money Fund
Financial highlights
Selected data for a share of common stock outstanding throughout each period is presented below:
|
|
|
|
|
|
|
|
|
Six months ended
December 31, 2013
(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
|
|
|
—
|
|
|
Total dividends and distributions
|
|
|
(0.000
|
)
2
|
|
Net asset value, end of period
|
|
|
$1.00
|
|
|
Total investment
return
3
|
|
|
0.01
|
%
|
|
Ratios to average net assets:
|
|
|
|
|
|
Expenses before fee waivers and/or expense reimbursements
|
|
|
0.66
|
%
4
|
|
Expenses after fee waivers and/or expense reimbursements
|
|
|
0.15
|
%
4
|
|
Net investment income
|
|
|
0.01
|
%
4
|
|
Supplemental data:
|
|
|
|
|
|
Net assets, end of period (in millions)
|
|
|
$1,002
|
|
|
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.
|
18
See accompanying notes to financial statements
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years ended June 30,
|
|
|
2013
|
|
|
2012
|
|
|
2011
1
|
|
|
2010
|
|
|
2009
|
|
|
|
$1.00
|
|
|
|
$1.00
|
|
|
|
$1.00
|
|
|
|
$1.00
|
|
|
|
$1.00
|
|
|
|
0.000
|
2
|
|
|
0.000
|
2
|
|
|
0.000
|
2
|
|
|
0.000
|
2
|
|
|
0.009
|
|
|
|
(0.000
|
)
2
|
|
|
(0.000
|
)
2
|
|
|
(0.000
|
)
2
|
|
|
(0.000
|
)
2
|
|
|
(0.009
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.000
|
)
2
|
|
|
(0.000
|
)
2
|
|
|
(0.000
|
)
2
|
|
|
(0.000
|
)
2
|
|
|
(0.000
|
)
2
|
|
|
(0.000
|
)
2
|
|
|
(0.000
|
)
2
|
|
|
(0.009
|
)
|
|
|
$1.00
|
|
|
|
$1.00
|
|
|
|
$1.00
|
|
|
|
$1.00
|
|
|
|
$1.00
|
|
|
|
0.01
|
%
|
|
|
0.01
|
%
|
|
|
0.01
|
%
|
|
|
0.01
|
%
|
|
|
0.96
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.66
|
%
|
|
|
0.67
|
%
|
|
|
0.72
|
%
|
|
|
0.74
|
%
|
|
|
0.75
|
%
|
|
|
0.20
|
%
|
|
|
0.19
|
%
|
|
|
0.26
|
%
|
|
|
0.27
|
%
|
|
|
0.66
|
%
|
|
|
0.01
|
%
|
|
|
0.01
|
%
|
|
|
0.01
|
%
|
|
|
0.01
|
%
|
|
|
0.90
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$1,310
|
|
|
|
$1,326
|
|
|
|
$1,418
|
|
|
|
$1,551
|
|
|
|
$1,984
|
|
19
See accompanying notes to financial statements
UBS Retirement Money Fund
Notes to financial statements (unaudited)
Organization and significant accounting policies
UBS RMA Money Fund Inc. (the
“Corporation”) was incorporated in the state of Maryland on July 2, 1982 and is registered with the US Securities and Exchange Commission (“SEC”) under the Investment Company Act of 1940, as amended, as an open-end,
diversified management investment company. The Corporation is a series mutual fund and currently has three portfolios: UBS Retirement Money Fund (the “Fund”), UBS RMA Money Market Portfolio and UBS RMA U.S. Government Portfolio. The
financial statements for UBS RMA Money Market Portfolio and UBS RMA U.S. Government Portfolio are not included herein.
The Corporation accounts
separately for the assets, liabilities and operations of each series. Expenses directly attributable to each series are charged to that series’ operations; expenses which are applicable to all series are allocated among them on a pro rata
basis.
In the normal course of business, the Fund may enter into contracts that contain a variety of representations or that provide indemnification
for certain liabilities. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. However, the Fund has not had prior claims or losses
pursuant to these contracts and expects the risk of loss to be remote.
The Fund attempts to maintain a stable net asset value of $1.00 per share; the
Fund has adopted certain investment, portfolio valuation and dividend/distribution policies in an attempt to enable it to do so. As with any money market fund, there is no assurance, however, that the Fund will be able to maintain a stable net asset
value of $1.00 per share.
The Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) is the
exclusive reference of authoritative US generally accepted accounting principles (“US GAAP”) recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the SEC under authority of federal laws are
also sources of authoritative US GAAP for SEC registrants.
20
UBS Retirement Money Fund
Notes to financial statements (unaudited)
The Fund’s financial statements are prepared in accordance with US GAAP, which may require the use of management estimates and assumptions. Actual results could differ from those
estimates. The following is a summary of significant accounting policies:
Valuation of investments
Investments are valued at amortized cost. Periodic review and monitoring of the valuation of the securities held by the Fund is performed in an effort to ensure
that amortized cost approximates market value.
US GAAP requires disclosure regarding the various inputs that are used in determining the value of
the Fund’s investments. These inputs are summarized into the three broad levels listed below:
Level 1—Unadjusted quoted prices in active
markets for identical investments.
Level 2—Other significant observable inputs, including but not limited to, quoted prices for similar
investments, interest rates, prepayment speeds and credit risks.
Level 3—Unobservable inputs inclusive of the Fund’s own assumptions in
determining the fair value of investments.
In accordance with the requirements of US GAAP, a fair value hierarchy has been included near the end
of the Fund’s Statement of net assets.
Repurchase
agreements
The Fund may purchase securities or other obligations from a bank or securities dealer (or its affiliate), subject to the seller’s
agreement to repurchase them at an agreed upon date (or upon demand) and price. The Fund maintains custody of the underlying obligations prior to their repurchase, either through its regular custodian or through a special “tri-party”
custodian or sub-custodian that maintains a separate account for both the Fund and its counterparty. The underlying collateral is valued daily in an effort to ensure that the value, including accrued interest, is at least equal to the repurchase
price. In the event of
21
UBS Retirement Money Fund
Notes to financial statements (unaudited)
default of the obligation to repurchase, the Fund generally has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. Repurchase agreements 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 become insolvent. If the seller (or seller’s guarantor, if any) becomes insolvent, the Fund may suffer delays, costs and possible losses in connection with the disposition or retention of the
collateral. Under certain circumstances, in the event of default or bankruptcy by the other party to the agreement, realization and/or retention of the collateral may be subject to legal proceedings. The Fund may participate in joint repurchase
agreement transactions with other funds managed or advised by UBS Global Asset Management (Americas) Inc. (“UBS Global AM”).
Under certain
circumstances, the Fund may engage in a repurchase agreement transaction with a yield of zero in order to invest cash amounts remaining in its portfolio at the end of the day to avoid having the Fund assessed 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
22
UBS Retirement Money Fund
Notes to financial statements (unaudited)
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 Fund to meet their obligations may be affected by economic and political developments particular to a specific industry, country, state or region.
Investment advisor and administrator
The Fund’s Board of Directors has approved an
investment advisory and administration contract (the “Advisory Contract”) with UBS Global AM, under which UBS Global AM serves as investment advisor and administrator of the Fund. In accordance with the Advisory Contract, the Fund pays UBS
Global AM an investment advisory and administration fee, which is accrued daily and paid monthly, in accordance with the following schedule:
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Average daily net assets
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Annual rate
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Up to $300 million
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0.450
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%
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In excess of $300 million up to $750 million
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0.415
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In excess of $750 million up to $1.5 billion
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0.335
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In excess of $1.5 billion up to $5 billion
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0.325
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Over $5 billion
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0.315
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At December 31, 2013, the Fund owed UBS Global AM $5,229 for investment advisory and administration fees, net of fee
waivers/expense reimbursements.
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. For the six months ended December 31, 2013, UBS Global AM voluntarily waived investment advisory and administration fees totaling $2,242,352; such
amount is not subject to future recoupment.
23
UBS Retirement Money Fund
Notes to financial statements (unaudited)
Under normal conditions, the Fund invests cash collateral from securities lending activities into an affiliated private money market fund, UBS Private Money Market Fund LLC (“Private Money Market”), which
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, would be reflected as securities lending income in the Statement of operations.
Additional information regarding compensation to affiliate of a board member
Professor Meyer Feldberg serves as a senior advisor to Morgan Stanley, a financial services firm with which the Fund may conduct transactions, resulting in him being an interested board member of the Fund. The Fund
has been informed that Professor Feldberg’s role at Morgan Stanley does not involve matters directly affecting any UBS funds. Portfolio transactions are executed through Morgan Stanley based on that firm’s ability to provide best execution
of the transactions. During the six months ended December 31, 2013, the Fund purchased and sold certain securities (e.g., fixed income securities) in principal trades with Morgan Stanley, having an aggregate value of $254,969,830. 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
24
UBS Retirement Money Fund
Notes to financial statements (unaudited)
commercial paper program, or some other form of compensation. Although the precise amount of this compensation is not generally known by the Fund’s investment advisor, it is believed that
under normal circumstances it represents a small portion of the total value of the transactions.
Distribution plan
UBS Global Asset Management (US) Inc. (“UBS Global AM (US)”) is the principal underwriter of the Fund’s shares and has appointed UBS Financial
Services Inc. as dealer for the sale of those shares. Under the plan of distribution, the Fund pays UBS Global AM (US) a monthly service fee, which is accrued daily and paid monthly, at an annual rate of up to 0.15% of the Fund’s average daily
net assets. The Fund currently pays service fees to UBS Global AM (US) at the maximum annual rate of 0.15% of average daily net assets. UBS Global AM (US) has undertaken to waive fees in the event that Fund yields drop below a certain level. This
undertaking is voluntary and not contractual and may be terminated at any time. At December 31, 2013, given the impact of voluntary fee waivers, the Fund did not owe UBS Global AM (US) for service fees. For the six months ended
December 31, 2013, UBS Global AM (US) voluntarily waived $922,568 of service fees; such amount is not subject to future recoupment.
Transfer agency related services
UBS
Financial Services Inc. provides certain services pursuant to a delegation of authority from BNY Mellon Investment Servicing (US) Inc. (“BNY Mellon”), the Fund’s transfer agent, and is compensated for these services by BNY Mellon, not
the Fund.
For the six months ended December 31, 2013, UBS Financial Services Inc. received from BNY Mellon, not the Fund, $283,388 of the total
transfer agency and related services fees paid by the Fund to BNY Mellon.
Securities lending
The Fund may lend securities up to 33
1
/
3
% of its total assets to qualified broker-dealers or institutional investors. The loans are
secured at all
25
UBS Retirement Money Fund
Notes to financial statements (unaudited)
times by cash, US government securities or irrevocable letters of credit in an amount at least equal to the market value of the securities loaned, plus accrued interest and dividends, determined
on a daily basis and adjusted accordingly. The Fund will regain ownership of loaned securities to exercise certain beneficial rights; however, the Fund may bear the risk of delay in recovery of, or even loss of rights in, the securities loaned
should the borrower fail financially. The Fund receives compensation for lending its securities from interest or dividends earned on the cash, US government securities or irrevocable letters of credit held as collateral, net of fee rebates paid to
the borrower plus reasonable administrative and custody fees. State Street Bank and Trust Company serves as the Fund’s lending agent. At December 31, 2013, the Fund did not have any securities on loan.
Other liabilities and components of net assets
At December 31, 2013, the Fund had the following liabilities outstanding:
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Dividends payable to shareholders
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$ 2,790
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Other accrued expenses*
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239,569
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*
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Excludes investment advisory and administration fees.
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At
December 31, 2013, the components of net assets were as follows:
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Accumulated paid in capital
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$1,002,346,630
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Accumulated net realized loss
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(4,627
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)
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Net assets
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$1,002,342,003
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Common stock
There are 20 billion shares of $0.001 par value common stock authorized. Transactions in shares of common stock, at $1.00 per share, were as follows:
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For the six
months ended
December 31, 2013
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For the
year ended
June 30, 2013
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Shares sold
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1,731,285,511
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5,400,242,130
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Shares repurchased
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(2,039,106,855
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)
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(5,416,267,913
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)
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Dividends reinvested
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56,605
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118,752
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Net decrease in shares outstanding
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(307,764,739
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)
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(15,907,031
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)
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26
UBS Retirement Money Fund
Notes to financial statements (unaudited)
Federal tax status
The 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
its net investment income, net realized capital gains and certain other amounts, if any, the Fund intends not to be subject to a federal excise tax.
The tax character of distributions paid to shareholders by the Fund during the six months ended December 31, 2013 and the fiscal year ended June 30, 2013
was ordinary income.
The components of accumulated earnings (deficit) on a tax basis for the current fiscal year will be determined after the
Fund’s fiscal year ending June 30, 2014.
As of and during the period ended December 31, 2013, the Fund did not have any liabilities for
any uncertain tax positions. The Fund recognizes interest and penalties, if any, related to uncertain tax positions as income tax expense in the Statement of operations. During the six months ended December 31, 2013, the Fund did not incur any
interest or penalties.
Each of the tax years in the four year period ended June 30, 2013, remains subject to examination by the Internal Revenue
Service and state taxing authorities.
27
UBS Retirement Money Fund
General Information (unaudited)
Monthly and quarterly portfolio holdings disclosure
The Fund will file its complete schedule
of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Forms N-Q are available on the SEC’s Web site at http://www.sec.gov. The
Fund’s Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the SEC’s Public Reference Room may be obtained by calling 1-800-SEC 0330. Additionally, you may obtain
copies of Forms N-Q from the Fund upon request by calling 1-800-647 1568.
In addition, the Fund discloses, on a monthly basis: (a) a complete
schedule of its portfolio holdings; and (b) information regarding its weighted average maturity and weighted average life on UBS’s Web site at the following internet address: www.ubs.com/usmoneymarketfundsholdings. In addition, at this
location, you will find a link to more detailed fund information appearing in filings with the SEC on Form N-MFP. Investors also may find additional information about the Fund at the above referenced UBS Web site internet address.
Proxy voting policies, procedures and record
You may obtain a description of the Fund’s (1) proxy voting policies, (2) proxy voting procedures and (3) information regarding how the Fund
voted any proxies related to portfolio securities during the most recent 12-month period ended June 30 for which an SEC filing has been made, without charge, upon request by contacting the Fund directly at 1-800-647 1568, online on the
Fund’s Web site: www.ubs.com/ubsglobalam-proxy, or on the EDGAR Database on the SEC’s Web site (http://www.sec.gov).
28
UBS Retirement Money Fund
Board approval of the investment advisory and administration contract (unaudited)
Background—
At a meeting of the board of UBS RMA Money Fund Inc. (the “Corporation”) on July 16-17, 2013, the members of the board,
including the directors who are not “interested persons” of the Corporation (“Independent Directors”), as defined in the Investment Company Act of 1940, as amended (the “1940 Act”), considered and approved the
continuance of the investment advisory and administration agreement (the “Investment Advisory and Administration Agreement”) between UBS Global Asset Management (Americas) Inc. (“UBS Global AM”) and the Corporation, with respect
to its series, UBS Retirement Money Fund (the “Fund”). In preparing for the meeting, the board members had requested and received extensive information from UBS Global AM to assist them. The board received and considered a variety of
information about UBS Global AM as well as the advisory, administrative and distribution arrangements for the Fund. Independent Directors discussed the materials initially provided by management among themselves on several occasions prior to the
scheduled board meeting, and independent legal counsel participated in several such discussions. The Independent Directors also met in executive session with their independent legal counsel to review the presentation that had been made to them at
the meeting. The Independent Directors also received a memorandum from their independent legal counsel discussing the duties of board members in considering approval of advisory, administration and distribution agreements.
In its consideration of the approval of the Investment Advisory and Administration Agreement, the board evaluated the following factors:
Nature, extent and quality of the services under the Investment Advisory and Administration Agreement—
The board received and considered information
regarding the nature, extent and quality of advisory services provided to the Fund by UBS Global AM under the Investment Advisory and Administration Agreement. The board also considered the nature, extent and quality of administrative, distribution,
and shareholder services performed by UBS Global AM and its affiliates for the Fund and the resources devoted to, and the record of compliance with, the Fund’s compliance policies and procedures. The board noted that it received information at
regular meetings
29
UBS Retirement Money Fund
Board approval of the investment advisory and administration contract (unaudited)
throughout the year regarding the services rendered by UBS Global AM concerning the management of the Fund’s affairs and UBS Global AM’s role in coordinating providers of other services
to the Fund, including custody, accounting and transfer agency services. The 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. The 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 Fund’s expanded compliance programs.
The board had available to it the qualifications, backgrounds and responsibilities of the senior personnel at UBS Global AM responsible for the Fund and had previously met with and received information regarding
the person primarily responsible for the day-to-day portfolio management of the Fund and recognized that the Fund’s senior personnel at UBS Global AM report to the board regularly and that at each regular meeting the board receives a detailed
report on the Fund’s performance. The board also considered, based on its 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 board 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 was also noted that UBS Global AM had approximately $159 billion in
assets under management as of March 31, 2013 and was part of the UBS Global Asset Management Division, which had approximately $632 billion in assets under management worldwide as of March 31, 2013. The board was also 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.
The board concluded that, overall, it was satisfied with the nature, extent and quality of services provided (and expected to be provided) to the Fund under the Investment Advisory and Administration Agreement.
30
UBS Retirement Money Fund
Board approval of the investment advisory and administration contract (unaudited)
Advisory fees and expense ratios—
The board reviewed and considered the contractual advisory and administration fee (the “Contractual Management
Fee”) payable by the Fund to UBS Global AM in light of the nature, extent and quality of the advisory and administrative services provided by UBS Global AM. The board also reviewed and considered the fee waiver and/or expense reimbursement
arrangement implemented for the Fund and considered the actual fee rate (after taking any waivers and/or reimbursements into account) (the “Actual Management Fee”). Additionally, the board received and considered information comparing the
Fund’s Contractual Management Fee, Actual Management Fee and overall expenses with those of funds in a group of funds selected and provided by Lipper, Inc. (“Lipper”), an independent provider of investment company data (the
“Expense Group”).
In connection with its consideration of the Fund’s management fees, the 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 Fund because, among other reasons, separately managed and institutional accounts with a
“cash” mandate (a) were not subject to all of the constraints of Rule 2a-7 under the 1940 Act to which the Fund is subject and (b) do not involve the management responsibilities attendant to the operation of a 1940 Act regulated
fund, and, therefore, were not totally comparable. The board also received information on fees charged to other mutual funds managed by UBS Global AM.
The comparative Lipper information showed that the Fund’s Contractual Management Fee was in the third quintile, its Actual Management Fee was in the fourth
quintile and its total expenses were in the second quintile in the Fund’s Expense Group for the comparison periods utilized in the Lipper report. (The first quintile represents that 20% of the funds in the Expense Group with the lowest fees or
expenses, as applicable, and the fifth quintile represents that 20% of the funds in the Expense Group with the highest fees or expenses, as applicable.) Management noted that the approach in which waivers are applied for the Fund differs from the
approach Lipper utilizes to reflect waivers for its peers (
i.e.
, most peers
31
UBS Retirement Money Fund
Board approval of the investment advisory and administration contract (unaudited)
have the waivers applied toward the management fees first while UBS Global AM applies a methodology of waiving 0.01% from management fees and 0.01% from service fees alternating between the two
until the service fees are completely waived). Management further noted that, as a result, the Fund’s Actual Management Fee appears above the peer group median, but the Fund’s total expenses are below the peer group median. Therefore,
management noted that it believes that overall expenses are in line with peers.
In light of the foregoing and management’s explanation, the board
determined that the management fee was reasonable in light of the nature, extent and quality of services provided to the Fund under the Investment Advisory and Administration Agreement.
Fund performance—
The board received and considered (a) annualized total return information of the Fund compared to other funds (the “Performance Universe”) selected by Lipper over the
one-, three-, five-, ten-year and since inception periods ended April 30, 2013 and (b) annualized performance information for each year in the ten-year period ended April 30, 2013. The board was provided with a description of the
methodology Lipper used to determine the similarity of the Fund with the funds included in its Performance Universe. The board also noted that it had received information throughout the year at periodic intervals with respect to the Fund’s
performance.
The comparative Lipper information showed that the Fund’s performance was in the second quintile for the one- and three-year periods,
in the third quintile for the five- and ten-year periods and in the fourth quintile since inception. (The first quintile represents that 20% of the funds in the Performance Universe with the best relative performance, and the fifth quintile
represents that 20% of the funds in the Performance Universe with the worst relative performance.) Management noted the Fund’s improved performance for the recent periods. Based on its review, the board concluded that the Fund’s investment
performance was acceptable.
32
UBS Retirement Money Fund
Board approval of the investment advisory and administration contract (unaudited)
Advisor profitability—
The board received and considered a profitability analysis of UBS Global AM and its affiliates in providing services to the Fund.
The 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 the
Fund.
Economies of scale—
The board received and considered information from management regarding whether there have been economies of scale
with respect to the management of the Fund, whether the Fund has appropriately benefited from any economies of scale, and whether there is potential for realization of any further economies of scale for the Fund. The board considered whether
economies of scale in the provision of services to the Fund were being passed along to the shareholders.
The board noted that the Fund’s
Contractual Management Fee contained breakpoints. The board considered that the Fund’s asset level exceeded various breakpoints and, as a result, the Fund and its shareholders realized certain economies of scale because the total expense ratio
of the Fund was lower than if no breakpoints had been in place. Accordingly, the board determined that economies of scale were passed on to shareholders in the form of breakpoints to the management fee.
Generally, in light of UBS Global AM’s profitability data, the Contractual Management Fee and the Actual Management Fee, and the breakpoints currently in
place, the board believed that UBS Global AM’s sharing of current economies of scale with the Fund was acceptable.
Other benefits to UBS Global
AM—
The board considered other benefits received by UBS Global AM and its affiliates as a result of its relationship with the Fund, including the opportunity to offer additional products and services to Fund shareholders. In light of the
costs of providing investment advisory, administrative and other services to the Fund and UBS Global AM’s ongoing commitment to the Fund, the profits and other ancillary benefits that UBS Global AM and its affiliates received were considered
reasonable.
33
UBS Retirement Money Fund
Board approval of the investment advisory and administration contract (unaudited)
In light of all of the foregoing, the board approved the Investment Advisory and Administration Agreement for the Fund. In making its decision, the board identified
no single factor as being determinative in approving the Investment Advisory and Administration Agreement. The Independent Directors were advised by separate independent legal counsel throughout the process. The board discussed the proposed
continuance of the Investment Advisory and Administration Agreement in private sessions with its independent legal counsel at which no representatives of UBS Global AM were present.
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