<PAGE> PAGE 1
000 B000000 03/31/99
000 C000000 0000225375
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0
000 J000000 A
001 A000000 FRANKLIN CALIFORNIA TAX-FREE INCOME FUND,INC.
001 B000000 811-2790
001 C000000 6503122000
002 A000000 777 MARINERS ISLAND BOULEVARD
002 B000000 SAN MATEO
002 C000000 CA
002 D010000 94404
002 D020000 1585
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
007 C010100 1
007 C010200 2
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
007 C011100 11
007 C011200 12
007 C011300 13
007 C011400 14
007 C011500 15
007 C011600 16
007 C011700 17
007 C011800 18
007 C011900 19
007 C012000 20
008 A000001 FRANKLIN ADVISERS, INC.
008 B000001 A
008 C000001 801-26292
008 D010001 SAN MATEO
008 D020001 CA
008 D030001 94404
008 D040001 1585
010 A000001 FRANKLIN TEMPLETON SERVICES, INC.
<PAGE> PAGE 2
010 C010001 SAN MATEO
010 C020001 CA
010 C030001 94404
010 C040001 1585
011 A000001 FRANKLIN/TEMPLETON DISTRIBUTORS, INC.
011 B000001 8-5889
011 C010001 SAN MATEO
011 C020001 CA
011 C030001 94404
011 C040001 1585
012 A000001 FRANKLIN/TEMPLETON INVESTOR SERVICES, INC.
012 B000001 84-1036
012 C010001 SAN MATEO
012 C020001 CA
012 C030001 94404
012 C040001 1585
013 A000001 PRICEWATERHOUSECOOPERS LLP
013 B010001 SAN FRANCISCO
013 B020001 CA
013 B030001 94105
013 B040001 2119
014 A000001 FRANKLIN/TEMPLETON DISTRIBUTORS, INC.
014 B000001 8-5889
015 A000001 BANK OF NEW YORK
015 B000001 C
015 C010001 NEW YORK
015 C020001 NY
015 C030001 10286
015 E010001 X
015 A000002 DELETE
015 A000003 DELETE
018 000000 Y
019 A000000 Y
019 B000000 197
019 C000000 FRNKTEMGRP
020 C000001 0
020 C000002 0
020 C000003 0
020 C000004 0
020 C000005 0
020 C000006 0
020 C000007 0
020 C000008 0
020 C000009 0
020 C000010 0
021 000000 0
022 A000001 PAINEWEBBER, INC.
022 B000001 13-2638166
022 C000001 1377590
022 D000001 1135283
022 A000002 SALOMON SMITH BARNEY
<PAGE> PAGE 3
022 B000002 13-1912900
022 C000002 1228421
022 D000002 617830
022 A000003 MORGAN (J.P.) SECURITIES, INC.
022 B000003 13-3224016
022 C000003 547076
022 D000003 478270
022 A000004 MORGAN STANLEY DEAN WITTER
022 B000004 13-2655998
022 C000004 547892
022 D000004 290426
022 A000005 BEAR, STEARNS & SECURITIES CORP.
022 B000005 13-3299429
022 C000005 361982
022 D000005 342996
022 A000006 MERRILL LYNCH PIERCE FENNER
022 B000006 13-5674085
022 C000006 536149
022 D000006 134214
022 A000007 LEHMAN BROTHERS, INC.
022 B000007 13-2518466
022 C000007 320430
022 D000007 127769
022 A000008 U.S. BANCORP PIPER JAFFRAY CO.
022 B000008 41-0953246
022 C000008 254505
022 D000008 142146
022 A000009 GOLDMAN SACHS & CO.
022 B000009 13-5108880
022 C000009 185688
022 D000009 94464
022 A000010 SIMON (WM E.) & SONS MUNI SEC.
022 B000010 22-3017217
022 C000010 160742
022 D000010 116750
023 C000000 6910559
023 D000000 4136065
024 000000 N
025 D000001 0
025 D000002 0
025 D000003 0
025 D000004 0
025 D000005 0
025 D000006 0
025 D000007 0
025 D000008 0
026 A000000 Y
026 B000000 Y
026 C000000 Y
026 D000000 Y
026 E000000 N
<PAGE> PAGE 4
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 Y
028 A010000 377602
028 A020000 29716
028 A030000 0
028 A040000 420161
028 B010000 354499
028 B020000 29651
028 B030000 0
028 B040000 202455
028 C010000 295590
028 C020000 47731
028 C030000 0
028 C040000 352546
028 D010000 293946
028 D020000 28568
028 D030000 0
028 D040000 269692
028 E010000 240093
028 E020000 28849
028 E030000 0
028 E040000 300733
028 F010000 319406
028 F020000 27581
028 F030000 0
028 F040000 315453
028 G010000 1881136
028 G020000 192096
028 G030000 0
028 G040000 1861040
028 H000000 514565
029 000000 Y
030 A000000 33405
030 B000000 4.25
030 C000000 0.00
031 A000000 0
031 B000000 770
032 000000 34175
033 000000 0
034 000000 Y
035 000000 379
036 A000000 N
036 B000000 0
037 000000 N
038 000000 0
039 000000 N
040 000000 Y
041 000000 Y
<PAGE> PAGE 5
042 A000000 0
042 B000000 0
042 C000000 100
042 D000000 0
042 E000000 0
042 F000000 0
042 G000000 0
042 H000000 0
043 000000 14327
044 000000 3876
045 000000 Y
046 000000 N
047 000000 Y
048 000000 0.000
048 A010000 100000
048 A020000 0.625
048 B010000 150000
048 B020000 0.500
048 C010000 9750000
048 C020000 0.450
048 D010000 2500000
048 D020000 0.440
048 E010000 2500000
048 E020000 0.420
048 F010000 2500000
048 F020000 0.400
048 G010000 2500000
048 G020000 0.380
048 H010000 0
048 H020000 0.000
048 I010000 0
048 I020000 0.000
048 J010000 0
048 J020000 0.000
048 K010000 20000000
048 K020000 0.360
049 000000 N
050 000000 N
051 000000 N
052 000000 N
053 A000000 N
054 A000000 Y
054 B000000 Y
054 C000000 Y
054 D000000 N
054 E000000 N
054 F000000 N
054 G000000 Y
054 H000000 Y
054 I000000 N
054 J000000 Y
<PAGE> PAGE 6
054 K000000 N
054 L000000 Y
054 M000000 Y
054 N000000 N
054 O000000 Y
055 A000000 N
055 B000000 N
056 000000 N
057 000000 N
058 A000000 N
059 000000 Y
060 A000000 Y
060 B000000 Y
061 000000 1000
062 A000000 Y
062 B000000 0.0
062 C000000 0.0
062 D000000 0.0
062 E000000 0.5
062 F000000 0.0
062 G000000 0.0
062 H000000 0.0
062 I000000 0.0
062 J000000 0.0
062 K000000 0.0
062 L000000 0.0
062 M000000 0.0
062 N000000 0.0
062 O000000 99.9
062 P000000 0.0
062 Q000000 0.0
062 R000000 0.0
063 A000000 0
063 B000000 6.6
064 A000000 Y
064 B000000 N
066 A000000 N
067 000000 N
068 A000000 N
068 B000000 N
069 000000 N
070 A010000 Y
070 A020000 N
070 B010000 N
070 B020000 N
070 C010000 N
070 C020000 N
070 D010000 N
070 D020000 N
070 E010000 N
070 E020000 N
<PAGE> PAGE 7
070 F010000 N
070 F020000 N
070 G010000 N
070 G020000 N
070 H010000 N
070 H020000 N
070 I010000 N
070 I020000 N
070 J010000 N
070 J020000 N
070 K010000 Y
070 K020000 N
070 L010000 N
070 L020000 N
070 M010000 N
070 M020000 N
070 N010000 Y
070 N020000 N
070 O010000 N
070 O020000 N
070 P010000 Y
070 P020000 Y
070 Q010000 N
070 Q020000 N
070 R010000 N
070 R020000 N
071 A000000 3695223
071 B000000 2866718
071 C000000 15359151
071 D000000 19
072 A000000 12
072 B000000 904341
072 C000000 0
072 D000000 0
072 E000000 0
072 F000000 69665
072 G000000 0
072 H000000 0
072 I000000 3807
072 J000000 157
072 K000000 941
072 L000000 281
072 M000000 111
072 N000000 565
072 O000000 0
072 P000000 0
072 Q000000 0
072 R000000 170
072 S000000 128
072 T000000 14327
072 U000000 0
<PAGE> PAGE 8
072 V000000 0
072 W000000 435
072 X000000 90587
072 Y000000 0
072 Z000000 813754
072AA000000 59346
072BB000000 13305
072CC010000 112384
072CC020000 0
072DD010000 797790
072DD020000 17736
072EE000000 50669
073 A010000 0.0000
073 A020000 0.0000
073 B000000 0.0200
073 C000000 0.0000
074 A000000 6704
074 B000000 0
074 C000000 70400
074 D000000 15970361
074 E000000 0
074 F000000 0
074 G000000 0
074 H000000 0
074 I000000 0
074 J000000 0
074 K000000 0
074 L000000 227919
074 M000000 0
074 N000000 16275384
074 O000000 250851
074 P000000 8787
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 0
074 R040000 33824
074 S000000 0
074 T000000 15981922
074 U010000 2090941
074 U020000 68743
074 V010000 0.00
074 V020000 0.00
074 W000000 0.0000
074 X000000 239352
074 Y000000 574207
075 A000000 0
075 B000000 15657217
076 000000 0.00
077 A000000 Y
077 B000000 Y
<PAGE> PAGE 9
077 I000000 Y
077 Q010000 Y
078 000000 N
080 A000000 ICI MUTUAL INSURANCE COMPANY
080 B000000 NONE
080 C000000 175000
081 A000000 Y
081 B000000 196
082 A000000 N
082 B000000 0
083 A000000 N
083 B000000 0
084 A000000 N
084 B000000 0
085 A000000 Y
085 B000000 N
086 A010000 0
086 A020000 0
086 B010000 0
086 B020000 0
086 C010000 0
086 C020000 0
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
SIGNATURE KIMBERLEY MONASTERIO
TITLE ASSISTANT TREASURER
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND MARCH 31, 1999 ANNUAL REPORT AND
IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 011
<NAME> FRANKLIN CALIFORNIA TAX-FREE INCOME FUND - CLASS A
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAR-31-1999
<PERIOD-END> MAR-31-1999
<INVESTMENTS-AT-COST> 14,932,231,653
<INVESTMENTS-AT-VALUE> 16,040,761,278
<RECEIVABLES> 227,918,325
<ASSETS-OTHER> 6,704,461
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 16,275,384,064
<PAYABLE-FOR-SECURITIES> 250,850,527
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 42,611,565
<TOTAL-LIABILITIES> 293,462,092
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 14,861,189,134
<SHARES-COMMON-STOCK> 2,090,940,996
<SHARES-COMMON-PRIOR> 2,008,858,232
<ACCUMULATED-NII-CURRENT> 1,496,555
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 10,706,658
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1,108,529,625
<NET-ASSETS> 15,981,921,972
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 904,341,495
<OTHER-INCOME> 0
<EXPENSES-NET> (90,587,206)
<NET-INVESTMENT-INCOME> 813,754,289
<REALIZED-GAINS-CURRENT> 46,041,024
<APPREC-INCREASE-CURRENT> 112,383,811
<NET-CHANGE-FROM-OPS> 972,179,124
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (797,790,042)
<DISTRIBUTIONS-OF-GAINS> (49,417,902)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 474,619,393
<NUMBER-OF-SHARES-REDEEMED> (441,485,023)
<SHARES-REINVESTED> 48,948,394
<NET-CHANGE-IN-ASSETS> 918,638,421
<ACCUMULATED-NII-PRIOR> 3,268,754
<ACCUMULATED-GAINS-PRIOR> 15,334,548
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> (69,665,022)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (90,587,206)
<AVERAGE-NET-ASSETS> 15,657,216,590
<PER-SHARE-NAV-BEGIN> 7.350
<PER-SHARE-NII> .390
<PER-SHARE-GAIN-APPREC> .070
<PER-SHARE-DIVIDEND> (.390)
<PER-SHARE-DISTRIBUTIONS> (.020)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 7.40
<EXPENSE-RATIO> .570
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] .000
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND MARCH 31, 1999 ANNUAL REPORT AND
IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 012
<NAME> FRANKLIN CALIFORNIA TAX-FREE INCOME FUND - CLASS B
<S> <C>
<PERIOD-TYPE> YEAR <F1>
<FISCAL-YEAR-END> MAR-31-1999
<PERIOD-END> MAR-31-1999
<INVESTMENTS-AT-COST> 14,932,231,653
<INVESTMENTS-AT-VALUE> 16,040,761,278
<RECEIVABLES> 227,918,325
<ASSETS-OTHER> 6,704,461
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 16,275,384,064
<PAYABLE-FOR-SECURITIES> 250,850,527
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 42,611,565
<TOTAL-LIABILITIES> 293,462,092
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 14,861,189,134
<SHARES-COMMON-STOCK> 5,906,718
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 1,496,555
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 10,706,658
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1,108,529,625
<NET-ASSETS> 15,981,921,972
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 904,341,495
<OTHER-INCOME> 0
<EXPENSES-NET> (90,587,206)
<NET-INVESTMENT-INCOME> 813,754,289
<REALIZED-GAINS-CURRENT> 46,041,024
<APPREC-INCREASE-CURRENT> 112,383,811
<NET-CHANGE-FROM-OPS> 972,179,124
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (158,483)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 5,987,954
<NUMBER-OF-SHARES-REDEEMED> (96,126)
<SHARES-REINVESTED> 14,890
<NET-CHANGE-IN-ASSETS> 918,638,421
<ACCUMULATED-NII-PRIOR> 3,268,754
<ACCUMULATED-GAINS-PRIOR> 15,334,548
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> (69,665,022)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (90,587,206)
<AVERAGE-NET-ASSETS> 15,657,216,590
<PER-SHARE-NAV-BEGIN> 7.410
<PER-SHARE-NII> .100
<PER-SHARE-GAIN-APPREC> (.030)
<PER-SHARE-DIVIDEND> (.090)
<PER-SHARE-DISTRIBUTIONS> .000
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 7.39
<EXPENSE-RATIO> 1.14 <F2>
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] .000
<FN>
<F1> FOR THE PERIOD JANUARY 1, 1999 (EFFECTIVE DATE) TO MARCH 31, 1999
<F2> ANNUALIZED
</FN>
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND MARCH 31, 1999 ANNUAL REPORT AND
IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 013
<NAME> FRANKLIN CALIFORNIA TAX-FREE INCOME FUND - CLASS C
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAR-31-1999
<PERIOD-END> MAR-31-1999
<INVESTMENTS-AT-COST> 14,932,231,653
<INVESTMENTS-AT-VALUE> 16,040,761,278
<RECEIVABLES> 227,918,325
<ASSETS-OTHER> 6,704,461
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 16,275,384,064
<PAYABLE-FOR-SECURITIES> 250,850,527
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 42,611,565
<TOTAL-LIABILITIES> 293,462,092
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 14,861,189,134
<SHARES-COMMON-STOCK> 62,836,474
<SHARES-COMMON-PRIOR> 40,296,061
<ACCUMULATED-NII-CURRENT> 1,496,555
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 10,706,658
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1,108,529,625
<NET-ASSETS> 15,981,921,972
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 904,341,495
<OTHER-INCOME> 0
<EXPENSES-NET> (90,587,206)
<NET-INVESTMENT-INCOME> 813,754,289
<REALIZED-GAINS-CURRENT> 46,041,024
<APPREC-INCREASE-CURRENT> 112,383,811
<NET-CHANGE-FROM-OPS> 972,179,124
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (17,577,963)
<DISTRIBUTIONS-OF-GAINS> (1,251,012)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 28,413,185
<NUMBER-OF-SHARES-REDEEMED> (7,568,825)
<SHARES-REINVESTED> 1,696,053
<NET-CHANGE-IN-ASSETS> 918,638,421
<ACCUMULATED-NII-PRIOR> 3,268,754
<ACCUMULATED-GAINS-PRIOR> 15,334,548
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> (69,665,022)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (90,587,206)
<AVERAGE-NET-ASSETS> 15,657,216,590
<PER-SHARE-NAV-BEGIN> 7.350
<PER-SHARE-NII> .350
<PER-SHARE-GAIN-APPREC> .060
<PER-SHARE-DIVIDEND> (.350)
<PER-SHARE-DISTRIBUTIONS> (.020)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 7.39
<EXPENSE-RATIO> 1.14
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] .000
</TABLE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Board of Directors of
Franklin California Tax-Free Income Fund
In planning and performing our audit of the financial
statements of Franklin California Tax-Free Income Fund for
the year ended March 31, 1999, we considered its internal
control, including controls over safeguarding securities, in
order to determine our auditing procedures for the purpose
of expressing our opinion on the financial statements and to
comply with the requirements of Form N-SAR, not to provide
assurance on internal control.
The management of Franklin California Tax-Free Income Fund
is responsible for establishing and maintaining internal
control. In fulfilling this responsibility, estimates and
judgments by management are required to assess the expected
benefits and related costs of controls. Generally, controls
that are relevant to an audit pertain to the entity's
objective of preparing financial statements for external
purposes that are fairly presented in conformity with
generally accepted accounting principles. Those controls
include the safeguarding of assets against unauthorized
acquisition, use, or disposition.
Because of inherent limitations in internal control, errors
or irregularities may occur and not be detected. Also,
projection of any evaluation of internal control to future
periods is subject to the risk that it may become inadequate
because of changes in conditions or that the effectiveness
of the design and operation may deteriorate.
Our consideration of internal control would not necessarily
disclose all matters in internal control that might be
material weaknesses under standards established by the
American Institute of Certified Public Accountants. A
material weakness is a condition in which the design or
operation of any specific internal control component does
not reduce to a relatively low level the risk that errors or
irregularities in amounts that would be material in relation
to the financial statements being audited may occur and not
be detected within a timely period by employees in the
normal course of performing their assigned functions.
However, we noted no matters involving internal control,
including controls over safeguarding securities that we
consider to be material weaknesses as defined above as of
March 31, 1999.
This report is intended solely for the information and use
of management and Securities and Exchange Commission.
PricewaterhouseCoopers LLP
May 5, 1999
San Francisco, California
wpdoc2\nsar\1999\112-77i.doc
4/28/99
NAME OF REGISTRANT:
Franklin California Tax-Free Income Fund, Inc.
File No. 811-2790
EXHIBIT ITEM No. 77I(b): Terms of new or amended securities
The Registrant offers three classes of shares: Franklin
California Tax-Free Income Fund - Class A, Franklin California
Tax-Free Income Fund - Class B and Franklin California Tax-Free
Income Fund - Class C. Before January 1, 1999, Class A shares
were designated Class I and Class C shares were designated Class
II. The Registrant began offering Class B shares on January 1,
1999. Additional classes of shares may be offered in the future.
Shares of each class represent proportionate interests in the
assets of the Registrant and have the same voting and other
rights and preferences as any other class of the Registrant for
matters that affect the Registrant as a whole. For matters that
only affect one class, however, only shareholders of that class
may vote. Each class will vote separately on matters affecting
only that class, or expressly required to be voted on separately
by state or federal law.
