<PAGE> 1
PROVIDENT
- -------------------------------------------------------------------------------
INSTITUTIONAL 400 Bellevue Parkway, Wilmington, DE 19809 - Phone:
FUNDS 302-792-2555 - Fax: 302-792-5876
MUNICIPAL FUND FOR CALIFORNIA INVESTORS, INC.
September 3, 1996
Dear Shareholder:
We are pleased to present the Semi-Annual Report to Shareholders of
Municipal Fund for California Investors, Inc. for the period ended July 31,
1996.
Interesting commentary on California's economy and debt financing is
included in the accompanying Investment Adviser's Report. The report also
addresses the Fund investment objectives.
Provident Institutional Funds offers a variety of high quality Taxable and
Tax-Exempt Money Market Funds to meet the varied needs of our investors. Please
contact your Provident Distributors, Inc. account representative or call our
Client Service Center at (800) 821-7432 to discuss your investment options. We
welcome the opportunity to serve you.
Sincerely,
/s/ G. Willing Pepper
G. Willing Pepper
Chairman
<PAGE> 2
MUNICIPAL FUND FOR CALIFORNIA INVESTORS, INC.
SEMI-ANNUAL INVESTMENT ADVISER'S REPORT
The California economy continues to show improvement as employment growth
and finances exhibit positive trends. Total non-farm employment rose by 308,000
from June 1995 to June 1996, a 2.5% increase. The services and construction
sectors were each up 4.7% year over year and unemployment in June was 7.1%, the
lowest level since the 7.0% figure in January 1991. The State finalized the
fiscal 1997 budget ($62.8 billion) on July 15, only two weeks into the new
fiscal year. Results of fiscal 1996 showed improvement in General Fund
operations as total revenues exceeded budget by 5.5%. Total disbursements were
4% over budget, resulting in a cash operating surplus of $1.23 billion, and a
surplus of $2.01 billion after transfers. Due to the positive operating results,
the General Fund cash deficit balance was reduced from $3.46 billion at the end
of fiscal 1995 to $1.45 billion at the conclusion of fiscal 1996. This is a
marked reduction from the peak deficit balance of over $5 billion at the close
of fiscal 1994.
The State has drastically reduced reliance on short-term debt issuance as
the financial picture has improved. The final portion of $10.2 billion of
short-term debt issued in fiscal 1995 was retired in April and as of June 30,
the State had no short-term debt outstanding other than an enhanced commercial
paper program which may not exceed $1 billion. The issuance of $3.0 billion of
California RANS in July is expected to be most, if not all, of the short-term
debt issued this year. This should be measured against the $7-10 billion issued
each year from 1993 through 1995.
Orange County emerged from bankruptcy in late June with the issuance of
$757 million of tax-exempt certificates of participation and $123 million of
taxable pension obligation bonds, the proceeds of which were used to pay off
various short-term note holders and other creditors who were forced to wait for
up to one year from June 1995 to receive payment. Both issues were insured by
MBIA and thus received a triple A rating from Moody's and Standard & Poor's.
Moody's subsequently raised the County's tax supported debt to Ba1 from Caa.
Standard & Poor's does not rate the tax-supported debt.
As the "flat tax" talks subsided after Mr. Forbes pulled out of the
presidential campaign, assets in tax-exempt money funds set new record levels
for the period ended July 31, 1996. Accompanied by continued growth of
tax-exempt money fund assets, demand for municipal securities outstripped supply
causing yield ratios as a percentage of Treasuries to decline to historically
"rich" levels.
Given the fiscal pressures which continue to impact California, the careful
selection of high quality securities will remain a primary objective in the
management of the Fund's two portfolios. On July 31, 1996, the California
Intermediate Municipal Fund had net assets of $12.7 million and CalMoney stood
at $436.3 million. The performance of the CalMoney Fund remains competitive
within its peer group, ranking #7 among 52 California tax-exempt money market
funds, according to Lipper Analytical Services, for the twelve months ended July
31, 1996. Advisory and administrative fees were waived, in part, during the
period stated. Past performance is no guarantee of future results.
The current strategy in the California Intermediate Municipal Fund is to
increase the current coupon and yield by purchasing additional high coupon
pre-refunded bonds. This would modestly increase the average maturity without
subjecting the Fund to undue risk during periods of market uncertainty. The Fund
continues to emphasize higher quality issues. Currently, 90% of the assets are
rated AA or higher.
PNC INSTITUTIONAL MANAGEMENT CORPORATION
2
<PAGE> 3
CALIFORNIA MONEY FUND
MUNICIPAL FUND FOR CALIFORNIA INVESTORS, INC.
Statement of Net Assets
July 31, 1996
(Unaudited)
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- --------------------------------- ------- ------------
<S> <C> <C> <C>
CALIFORNIA -- 96.90%
Bay Area Government Association
(Lease Revenue Pooled
Projects) Series 1987 DN
(National Westminster LOC)
(VMIG-1)**
3.40%.................08/07/96 $ 3,122 $ 3,122,000
California Educational
Facilities Financing Authority
(Occidental College Project)MB
(Morgan Guaranty LOC) (A-1+)
3.65%.................12/01/96 9,800 9,800,000
California GO Notes TECP
(Landesbank Hessen-Thuringen
LOC) (A-1, P-1)
3.40%.................09/12/96 8,000 8,000,000
California Health Facilities
Financing Authority (Adventist
Health System West-Sutter
Health) Series 1991B DN
(Toronto Dominion LOC)
(A-1+, VMIG-1)**
3.25%.................08/07/96 2,500 2,500,000
California Health Facilities
Financing Authority (Catholic
Healthcare West) Series 1988B
DN (MBIA Insurance)
(A-1+, VMIG-1)**
3.35%.................08/07/96 1,000 1,000,000
California Health Facilities
Financing Authority
(Huntington Memorial Hospital)
DN (Morgan Guaranty LOC)
(A-1+)**
3.60%.................08/07/96 3,700 3,700,000
California Health Facilities
Financing Authority (Pooled
Loan Program) Series 1987A DN
(Sanwa Bank LOC) (VMIG-1)**
3.20%.................08/07/96 5,300 5,300,000
California Health Facilities
Financing Authority (Scripps
Memorial Hospital) Series
1985B DN (MBIA Insurance)
(A-1+, VMIG-1)**
3.20%.................08/07/96 6,500 6,500,000
California Health Facilities
Financing Authority (St.
Francis Hospital) DN (MBIA
Insurance) (A-1+, VMIG-1)**
3.35%.................08/07/96 4,900 4,900,000
California Pollution Control
Financing Authority DN
(Societe Generale LOC)
(A-1+, VMIG-1)**
3.15%.................08/15/96 1,100 1,100,000
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- --------------------------------- --------- -----------
<S> <C> <C> <C>
California Pollution Control
Financing Authority PCRB
(Chevron Incorporated Project)
4.00%.................11/15/96 $ 2,720 $ 2,722,292
California Pollution Control
Financing Authority PCRB
(Pacific Gas & Electric
Company) (Banque Nationale de
Paris LOC) (A-1+)
3.45%.................08/08/96 3,300 3,300,000
California Pollution Control
Financing Authority PCRB
(Pacific Gas & Electric
Company) Series E (Morgan
Guaranty LOC) (A-1+)
3.40%.................09/20/96 9,200 9,200,000
California Pollution Control
Financing Authority PCRB
(Pacific Gas & Electric
Company) Series 1988C (Credit
Suisse LOC) (A-1+, P-1)
3.30%.................08/15/96 4,600 4,600,000
3.35%................. 08/15/96 4,400 4,400,000
California Pollution Control
Financing Authority PCRB
(Pacific Gas & Electric
Company) Series 1996C DN (Bank
of America LOC) (A-1+)**
3.50%.................08/01/96 2,900 2,900,000
California Pollution Control
Financing Authority PCRB
(Pacific Gas & Electric
Company) Series 1996G DN
(A-1, VMIG-1)**
3.60%.................08/01/96 14,900 14,900,000
California Pollution Control
Financing Authority PCRB (San
Diego Gas & Electric) Series
1984 TECP (VMIG-1)
4.00%.................09/01/96 6,500 6,500,000
California Pollution Control
Financing Authority PCRB
(Southern California Edison
Company) DN (A-1+, P-1)**
3.40%.................08/01/96 6,700 6,700,000
California Pollution Control
Financing Authority PCRB
(Southern California Edison
Company) Series 1986C DN
(A-1+, P-1)**
3.40%.................08/01/96 3,200 3,200,000
</TABLE>
3
<PAGE> 4
CALIFORNIA MONEY FUND
Statement of Net Assets (Continued)
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- --------------------------------- --------- -----------
<S> <C> <C> <C>
California Statewide
Communities Development
Authority Certificates of
Participation (Covenant
Retirement Communities, Inc.)
DN (ABN-AMRO Bank N.V. LOC)
(A-1+)**
3.50%.................08/07/96 $ 8,000 $ 8,000,000
California Statewide
Communities Development
Authority Certificates of
Participation
(St. Joseph Health System) DN
(A-1+, VMIG-1)**
3.25%.................08/07/96 12,300 12,300,000
California Statewide
Communities Development
Authority
Series 1995A-2 DN (Federal
National Mortgage Association
LOC) (A-1+)**
3.45%.................08/07/96 2,530 2,530,000
California Statewide
Communities Development
Authority
Series 1995A-5 DN (Federal
National Mortgage Association
LOC) (A-1+)**
3.50%.................08/07/96 21,100 21,100,000
California Water Management
Certificates of Participation
(Monterey Peninsula Wastewater
Reclamation Project) DN
(Sumitomo Bank LOC)
(A-1, VMIG-1)**
3.55%.................08/07/96 5,500 5,500,000
City of Stockton IDRB (La
Quinta Motor Inns) DN
(NationsBank LOC) (A-1)**
3.70%.................08/07/96 2,390 2,390,000
Contra Costa Multifamily
Housing Revenue Bonds
(Riverside Apartments) Series
1992B DN (Federal National
Mortgage Association LOC)
(A-1+)**
3.45%.................08/07/96 4,000 4,000,000
Corona Multifamily Housing
Revenue Refunding Bonds
(Country Hills Apartment
Project) Series 1995A DN (Bank
of America LOC) (A-1)**
3.40%.................08/07/96 6,955 6,955,000
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- --------------------------------- --------- -----------
<S> <C> <C> <C>
Eastern Municipal Water
District Facilities
Corporation (Riverside County)
Certificates of Participation
DN (FGIC Insurance) (A-1+,
VMIG-1)**
3.25%.................08/07/96 $ 900 $ 900,000
Fremont Multifamily Housing
Bonds (Creekside Village
Apartments) Series D DN (Fuji
Bank LOC) (VMIG-1)**
4.30%.................08/07/96 1,000 1,000,000
Fremont Multifamily Housing
Bonds (Mission Wells Project)
Series 1985E DN (Industrial
Bank of Japan LOC)
(A-1+, VMIG-1)**
3.55%.................08/07/96 5,100 5,100,000
Golden Empire Schools Financing
Authority (Kern High School
District Project) Series B DN
(National Westminster LOC)
(A-1+)**
3.45%.................08/07/96 4,900 4,900,000
Kern County Certificates of
Participation (Kern Public
Facilities Project) Series A
DN (Sanwa Bank LOC) (VMIG-1)**
3.35%.................08/07/96 3,700 3,700,000
Kern County Certificates of
Participation (Kern Public
Facilities Project) Series D
DN (Sanwa Bank LOC) (VMIG-1)**
3.35%.................08/07/96 2,400 2,400,000
Los Angeles County Housing
Authority (Malibu Meadows II
Project) Series A DN (Sumitomo
Bank LOC) (A-1)**
3.60%.................08/07/96 10,411 10,411,000
Los Angeles County Housing
Authority (Malibu Woods II
Project) Series B DN (Sumitomo
Bank LOC) (A-1)**
3.60%.................08/07/96 7,929 7,929,000
Los Angeles County Metropolitan
Transportation Authority
Second Subordinate Sales Tax
Revenue Notes Series A DN
(Industrial Bank of Japan LOC)
(A-1+)**
3.25%.................08/07/96 3,600 3,600,000
</TABLE>
4
<PAGE> 5
CALIFORNIA MONEY FUND
Statement of Net Assets (Continued)
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- --------------------------------- --------- -----------
<S> <C> <C> <C>
Los Angeles County Metropolitan
Transportation Authority
(Union Gateway Station) Series
A DN (Societe Generale LOC)
(A-1, VMIG-1)**
3.25%.................08/07/96 $15,200 $ 15,200,000
Los Angeles County Multifamily
Mortgage Revenue Bonds Series
1984B DN (Citibank LOC) (A-1,
VMIG-1)**
4.32%.................08/07/96 3,700 3,700,000
Los Angeles County Pension
Obligation Revenue Refunding
Bonds Series B DN (Canadian
Imperial Bank LOC)
(A-1+, VMIG-1)**
3.40%.................08/07/96 12,200 12,200,000
Los Angeles County Pension
Obligation Revenue Refunding
Bonds Series C DN (Bank of
Nova Scotia LOC)
(A-1+, VMIG-1)**
3.40%.................08/07/96 19,200 19,200,000
Los Angeles County
Transportation Commission
Sales Tax Revenue Refunding
Bonds Series 1992 DN (FGIC
Insurance)
(A-1+, VMIG-1)**
3.40%.................08/07/96 6,600 6,600,000
Monterey County Financing
Authority RB (Reclamation &
Distribution Projects) DN
(Dai-Ichi Kangyo LOC)
(VMIG-1)**
3.55%.................08/07/96 1,200 1,200,000
Northern California Public
Power Agency (Geothermal
Project #3-A) DN (Bank of Nova
Scotia LOC) (A-1+, VMIG-1)**
3.40%.................08/07/96 6,000 6,000,000
Oakland Certificates of
Participation (Capital
Improvement Project) DN
(Mitsubishi Bank LOC)
(A-1+, VMIG-1)**
3.80%.................08/07/96 400 400,000
Oakland Economic Development
Revenue Bonds (Leamington
Project) Series 1994A DN
(First Interstate LOC) (A-1)**
3.45%.................08/07/96 4,300 4,300,000
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- --------------------------------- --------- -----------
<S> <C> <C> <C>
Pasadena Certificates of
Participation (Rose Bowl
Improvements) DN (Industrial
Bank of Japan LOC)
(A-1, VMIG-1)**
3.50%.................08/07/96 $ 7,200 $ 7,200,000
Redlands City Multifamily
Revenue Refunding Bonds
(Parkview Terrace Project)
Series 1991A DN (Bank of
America LOC) (VMIG-1)**
3.30%.................08/07/96 3,600 3,600,000
Riverside County Certificates
of Participation (Riverside
County Public Facility) Series
1985A DN (Sanwa Bank LOC)
(A-1+, VMIG-1)**
3.30%.................08/07/96 3,000 3,000,000
Riverside County Certificates
of Participation (Riverside
County Public Facility) Series
1985B DN (Sanwa Bank LOC)
(A-1+, VMIG-1)**
3.35%.................08/07/96 17,700 17,700,000
Riverside County Multifamily
Housing Bonds (Sierra Pines
Apartments Project) Series
1991A DN (Swiss Bank LOC)
(A-1+)**
3.25%.................08/07/96 4,715 4,715,000
Riverside County TRAN
(SP-1+, MIG-1)
4.50%.................06/30/97 11,500 11,563,120
Riverside County TRAN Series
1996B DN (Toronto Dominion
LOC) (SP-1+, VMIG-1)**
3.40%.................08/07/96 5,000 5,000,000
Sacramento Municipal Utility
District Series I TECP
(Bayerische LB Girozentrale
LOC)
(A-1+, P-1)
3.25%.................08/09/96 3,000 3,000,000
3.45%.................10/11/96 2,133 2,133,000
San Bernardino County TRAN
(Landesbank Hessen-Thuringen
LOC) (SP-1+, VMIG-1)
4.50%.................06/30/97 8,000 8,043,912
San Diego Multifamily Housing
Bonds (Las Flores Project)
Series 1991A DN (Swiss Bank
LOC) (A-1+)**
3.45%.................08/07/96 16,800 16,800,000
</TABLE>
5
<PAGE> 6
CALIFORNIA MONEY FUND
Statement of Net Assets (Continued)
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- --------------------------------- --------- -----------
<S> <C> <C> <C>
San Francisco City & County
Housing Authority Multifamily
Housing Revenue Bonds
(Winterland Project)
Series 1985C DN (Citibank LOC)
(A-1, VMIG-1)**
3.40%................. 08/07/96 $ 1,200 $ 1,200,000
San Francisco City & County
Redevelopment Agency
Multifamily Housing Revenue
Bonds (Bayside Village
Project) Series B DN
(Industrial Bank of Japan LOC)
(A-1+, VMIG-1)**
3.60%................. 08/07/96 10,000 10,000,000
San Francisco City & County
Redevelopment Agency
Multifamily Housing Revenue
Bonds (South Harbor Project)
DN (VMIG-1)**
3.525%................ 08/07/96 14,000 14,000,000
San Jose Multifamily Housing
Bonds DN (FGIC Insurance)
(VMIG-1)**
3.25%................. 08/07/96 4,980 4,980,000
San Jose Redevelopment Agency
RB (Merged Area Redevelopment
Project) Series 1996B DN
(Morgan Guaranty LOC) (A-1+)**
3.55%................. 08/01/96 5,800 5,800,000
Santa Clara Multifamily Housing
Bonds (Fox Chase Project) DN
(FGIC Insurance) (VMIG-1)**
3.25%................. 08/07/96 1,600 1,600,000
Southeast California Lease
Revenue Refunding Bonds
(Resource Recovery Facility
Authority) DN (Industrial Bank
of Japan LOC) (A-1, VMIG-1)**
3.60%................. 08/07/96 3,500 3,500,000
Southern California Public
Power Authority (Palo Verde
Project) Series B DN (Morgan
Guaranty LOC) (A-1+, VMIG-1)**
3.40%................. 08/07/96 1,600 1,600,000
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- --------------------------------- ------- ------------
<S> <C> <C> <C>
Southern California Subordinate
Refunding Revenue Bonds
(Public Power Authority
Transportation Project)
Series 1991 DN (FGIC
Insurance) (A-1+, VMIG-1)**
3.40%................. 08/07/96 $ 1,200 $ 1,200,000
Ventura County TRAN
(SP-1+, MIG-1)
4.75%................. 07/02/97 18,000 18,134,914
Washington Township Hospital
District (Alameda County) DN
(Industrial Bank of Japan
LOC)**
3.45%................. 08/07/96 2,100 2,100,000
-----------
422,729,238
-----------
PUERTO RICO -- 3.00%
Puerto Rico Government
Development Bank Series 1985
DN (Credit Suisse LOC)
(A-1+, VMIG-1)**
3.25%................. 08/07/96 1,400 1,400,000
Puerto Rico Government
Development Bank TECP (A-1+)
3.40%................. 10/10/96 5,600 5,600,000
Puerto Rico Highway &
Transportation Authority
Highway Revenue Bonds Series X
DN (Landesbank
Hessen-Thuringen LOC) (A-1+,
VMIG-1)**
3.25%................. 08/07/96 5,500 5,500,000
Puerto Rico Industrial Medical
Higher Education and
Environmental Pollution
Control Facility Authority
(Ana G. Mendez Education
Foundation Project) DN (Bank
of Tokyo LOC) (A-1+)**
3.65%................. 08/07/96 600 600,000
-----------
13,100,000
-----------
</TABLE>
6
<PAGE> 7
CALIFORNIA MONEY FUND
Statement of Net Assets (Concluded)
<TABLE>
<CAPTION>
VALUE
------------
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(Cost $435,829,238*)........... 99.90% $435,829,238
OTHER ASSETS IN EXCESS OF
LIABILITIES.................... 0.10 428,077
------ ------------
NET ASSETS (Equivalent to $1.00
per share based on 361,392,623
California Money and 75,007,176
California Dollar shares
outstanding)................... 100.00% $436,257,315
====== ============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE
($436,257,315 / 436,399,799)............. $1.00
=====
- -------------
* Aggregate cost for federal income tax purposes is
$435,829,238.
** Variable rate demand notes -- the interest rate shown
is as of July 31, 1996, and the maturity date shown is
the longer of (i) the next interest readjustment date
or (ii) the date on which the principal amount owed can
be recovered through demand.
The Moody's Investors Service, Inc. and Standard &
Poor's Ratings Group ratings are believed to be the
most recent ratings available at July 31, 1996.
</TABLE>
- --------------------------------------------------------
CALIFORNIA MONEY FUND
SUPPLEMENTARY INFORMATION
Maturity Schedule of Portfolio
July 31, 1996
<TABLE>
<CAPTION>
MATURITY
PERIOD PAR PERCENTAGE
- ------------- ------------ ----------
<S> <C> <C>
1-30 Days $354,132,000 81.3%
31-60 Days 23,700,000 5.4%
61-90 Days 7,733,000 1.8%
91-120 Days 2,720,000 0.6%
121-150 Days 9,800,000 2.3%
Over 150 Days 37,500,000 8.6%
Average Weighted Maturity of Portfolio -- 41 days
- ---------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
7
<PAGE> 8
CALIFORNIA INTERMEDIATE MUNICIPAL FUND
MUNICIPAL FUND FOR CALIFORNIA INVESTORS, INC.
Statement of Net Assets
July 31, 1996
(Unaudited)
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ----------------------------------- ------- -----------
<S> <C> <C> <C>
CALIFORNIA -- 90.91%
California Department of
Water Resources (Central
Valley Project) Series I
(Pre-Refunded 06/01/00 @
101.50) RB (Aaa)
6.60%................... 12/01/19 $ 400 $ 434,500
California Education
Authority (Pepperdine
University) RB (MBIA
Insurance) (Aaa)
6.80%................... 11/01/00 500 541,875
California Education
Authority (Stanford
University) RB (Aaa)
5.50%................... 11/01/00 800 831,000
California Health
Facilities Financing
Authority (Cedars-Sinai
Hospital) Series 1990 RB
(Aa)
6.50%................... 11/01/00 600 632,250
California Pollution
Control Financing
Authority PCRB (Southern
California Edison
Company) Series 1986A DN
(A-1+, VMIG-1)**
3.40%................... 08/01/96 200 200,000
City of Sacramento
Financing Authority
(Pre-Refunded 11/01/01
@ 102) (Aaa)
6.70%................... 11/01/11 500 556,875
East Bay Municipal
Utility District RB
(AMBAC Insurance) (Aaa)
7.00%................... 06/01/00 800 870,000
Elk Grove Unified School
District (Pre-Refunded
12/01/98 @ 103) RB (FGIC
Insurance) (Aaa)
9.00%................... 12/01/07 200 227,250
Los Angeles County TRAN
Series A (Aaa)
6.75%................... 07/01/01 650 721,500
Los Angeles Department of
Water and Power
(Electric Plant) RB (Aa)
9.00%................... 02/01/01 500 586,250
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- --------------------------- ------ -------- -----------
<S> <C> <C> <C>
Los Angeles Department of
Water and Power
(Electric Plant) Series
1990 RB (Aa)
6.75%................... 05/15/99 $ 500 $ 530,000
Metropolitan Water
District of Southern
California RB (Aa)
6.00%................... 07/01/05 500 534,375
Northern California Power
Agency Public Power
Revenue Refunding
(Geothermal Project No.
3) Series B RB (AMBAC
Insurance) (Aaa)
5.50%................... 07/01/00 600 620,250
Sacramento Special Tax
Refunding Bonds (Laguna
Community Facilities
District) RB (FGIC
Insurance) (Aaa)
5.40%................... 12/01/01 640 660,800
San Francisco Bay Area
Rapid Transit District
Sales Tax RB (A1)
6.60%................... 07/01/99 600 633,000
San Francisco Various
Purpose Unlimited Tax GO
Series A RB (Aa)
6.20%................... 12/15/99 700 740,250
Southern California
Public Power Authority
(Joint Power Project) RB
(A)
6.75%................... 07/01/00 600 641,250
Southern California
Public Power Authority
(Refunding Project)
Series A RB (Aaa)
6.00%................... 07/01/00 500 526,875
State of California
Public Works Board
(Regents of The
University of
California) Series 1990A
(Pre-Refunded 12/01/02 @
102) RB (Aaa)
6.60%................... 12/01/22 500 559,375
West Sacramento
Redevelopment Agency RB
(MBIA Insurance) (Aaa)
6.25%................... 09/01/01 500 536,250
----------
11,583,925
----------
</TABLE>
8
<PAGE> 9
CALIFORNIA INTERMEDIATE MUNICIPAL FUND
Statement of Net Assets (Concluded)
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- ----------------------------------- ------- -----------
<S> <C> <C> <C>
PUERTO RICO -- 4.42%
Puerto Rico Public
Building Authority
(Public Education &
Health Facility)
Series L
(Pre-Refunded 07/01/02
@ 101.50) RB (Aaa)
6.875%.................. 07/01/21 $ 500 $ 563,125
VIRGIN ISLANDS -- 4.37%
Virgin Islands Public
Finance Authority (Pre-
Refunded 10/01/00 @ 101)
RB (Aaa)
7.25%................... 10/01/07 500 556,875
TOTAL INVESTMENTS IN SECURITIES
(Cost $12,396,252*)................. 99.70% $12,703,925
OTHER ASSETS IN EXCESS OF
LIABILITIES......................... 0.30 38,128
------- ----------
NET ASSETS (Equivalent to $10.33
per share based on 1,234,084
California Intermuni shares
outstanding)........................100.00% $12,742,053
====== ==========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE
($12,742,053 / 1,234,084).................. $10.33
- ------------- ==========
* Aggregate cost for federal income tax purposes is
$12,396,252. Net unrealized appreciation for all
securities is as follows:
Excess of value over tax cost......... $364,359
Excess of tax cost over value......... (56,686)
--------
$307,673
=========
** Variable rate demand notes -- the interest rate shown is
as of July 31, 1996, and the maturity date shown is the
longer of (i) the next interest readjustment date or
(ii) the date on which the principal amount owed can be
recovered through demand.
The Moody's Investors Service, Inc. and Standard &
Poor's Ratings Group ratings are believed to be the most
recent ratings available at July 31, 1996.
</TABLE>
- --------------------------------------------------------
CALIFORNIA INTERMEDIATE
MUNICIPAL FUND
SUPPLEMENTARY INFORMATION
July 31, 1996
Average Weighted Maturity of Portfolio -- 4.43 Years
- ---------------------------------------------------------
<TABLE>
<S> <C>
INVESTMENT ABBREVIATIONS:
DN Demand Notes (Variable Rate)
GO General Obligation
LOC Letter of Credit
MB Municipal Bonds
PCRB Pollution Control Revenue Bond
RB Revenue Bonds
TECP Tax-Exempt Commercial Paper
TRAN Tax and Revenue Anticipation Notes
</TABLE>
See accompanying notes to financial statements.
9
<PAGE> 10
MUNICIPAL FUND FOR CALIFORNIA INVESTORS, INC.
Statements of Operations
Six Months Ended July 31, 1996
(Unaudited)
<TABLE>
<CAPTION>
CALIFORNIA CALIFORNIA
MONEY INTERMEDIATE
FUND MUNICIPAL FUND
---------- --------------
<S> <C> <C>
Investment income:
Interest................................................... $7,510,968 $ 350,652
---------- ---------
Expenses:
Investment advisory fee.................................... 459,033 13,858
Administration fee......................................... 459,033 13,858
Service Organization fees:
Dollar shares........................................... 65,550 --
Custodian fees............................................. 57,489 2,248
Legal fees................................................. 19,694 762
Transfer agent fees........................................ 22,500 1,080
Audit fees................................................. 26,216 932
Directors' and Officer's fees and expenses................. 22,500 750
Registration and filing fees............................... 2,661 --
Printing................................................... 7,277 1,200
Other...................................................... 15,530 1,533
---------- ---------
1,157,483 36,221
Fees waived by Investment Adviser and Administrators....... (631,601) (22,326)
---------- ---------
Total expenses.......................................... 525,882 13,895
---------- ---------
Net investment income................................. 6,985,086 336,757
---------- ---------
Realized and unrealized gain (loss) on investments:
Net realized gain (loss) on investments sold............... (4,744) 3,816
Decrease in unrealized appreciation of investments......... -- (335,726)
Decrease in amortized market discount...................... -- (2,467)
---------- ---------
Net loss on investments............................... (4,744) (334,377)
---------- ---------
Net increase in net assets resulting from operations......... $6,980,342 $ 2,380
========== =========
</TABLE>
See accompanying notes to financial statements.
10
<PAGE> 11
MUNICIPAL FUND FOR CALIFORNIA INVESTORS, INC.
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
CALIFORNIA INTERMEDIATE
CALIFORNIA MONEY FUND MUNICIPAL FUND
----------------------------- -------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
JULY 31, JANUARY 31, JULY 31, JANUARY 31,
1996 1996 1996 1996
------------ ------------ ----------- -----------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Net investment income.......... $ 6,985,086 $ 15,010,539 $ 336,757 $ 774,637
Net realized and
unrealized gain (loss)
on investments............... (4,744) (1,064) (334,377) 942,408
------------ ------------ ----------- -----------
Net increase (decrease) in net
assets resulting from
operations................... 6,980,342 15,009,475 2,380 1,717,045
------------ ------------ ----------- -----------
Distributions to shareholders
from:
Net investment income:
Money shares.............. (6,240,813) (14,224,381) -- --
Plus shares............... -- -- -- --
Dollar shares............. (744,273) (786,158) -- --
Intermuni shares.......... -- -- (336,757) (774,637)
Net realized capital gains... -- -- (24,097) (55,495)
------------ ------------ ----------- -----------
Total distributions............ (6,985,086) (15,010,539) (360,854) (830,132)
------------ ------------ ----------- -----------
Increase (decrease) in net
assets from capital share
transactions................. 15,216,096 24,197,013 (1,825,427) (3,393,178)
------------ ------------ ----------- -----------
Net increase (decrease) in net
assets....................... 15,211,352 24,195,949 (2,183,901) (2,506,265)
Net assets:
Beginning of period.......... 421,045,963 396,850,014 14,925,954 17,432,219
------------ ------------ ----------- -----------
End of period................ $436,257,315 $421,045,963 $12,742,053 $14,925,954
============ ============ =========== ===========
</TABLE>
See accompanying notes to financial statements.
11
<PAGE> 12
CALIFORNIA MONEY FUND
MUNICIPAL FUND FOR CALIFORNIA INVESTORS, INC.
Financial Highlights
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
MONEY SHARES
-----------------------------------------------------------------------
SIX MONTHS YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
07/31/96 01/31/96 01/31/95 01/31/94 01/31/93 01/31/92
---------- ------- ------- ------- ------- -------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period.............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- ---------- ---------- ---------- ---------- ---------
Income From Investment Operations:
Net Investment Income........................ 0.0153 0.0356 0.0281 0.0223 0.0251 0.0375
---------- ---------- ---------- ---------- ---------- ---------
Less Distributions:
Dividends to Shareholders From Net Investment
Income..................................... (0.0153) (0.0356) (0.0281) (0.0223) (0.0251) (0.0375)
---------- ---------- ---------- ---------- ---------- ---------
Net Asset Value, End of Period.................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ========== =========
Total Return...................................... 3.10%(1) 3.62% 2.84% 2.25% 2.54% 3.82%
Ratios/Supplemental Data:
Net Assets, End of Period $(000)................ 361,253 389,883 385,824 356,501 359,193 490,141
Ratio of Expenses to Average Daily Net
Assets(2).................................... .20%(1) .20% .20% .20% .30% .30%
Ratio of Net Investment Income to Average Daily
Net Assets................................... 3.07%(1) 3.55% 2.79% 2.23% 2.52% 3.75%
</TABLE>
- ---------------
(1) Annualized.
(2) Operating expense ratios before waivers of Investment Adviser and
Administrator fees for Money shares for the six months ended July 31, 1996
and for the years ended January 31, 1996, 1995, 1994, 1993 and 1992 were
.47% (annualized), .48%, .48%, .49%, .48%, and .48%, respectively.
See accompanying notes to financial statements.
12
<PAGE> 13
CALIFORNIA MONEY FUND
MUNICIPAL FUND FOR CALIFORNIA INVESTORS, INC.
Financial Highlights
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
PLUS SHARES DOLLAR SHARES
------------------------------------------------------------------------- ---------------------
SIX MONTHS YEAR YEAR YEAR YEAR YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
07/31/96(3) 01/31/96(3) 01/31/95(3) 01/31/94(3) 01/31/93(3) 01/31/92 07/31/96 01/31/96
---------- ----------- ---------- ---------- ---------- -------- ---------- --------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period............ $1.00 $1.00 $1.00 $1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------ ----- ----- ----- ------- ------- ------- -------
Income From Investment
Operations:
Net Investment Income....... -- -- -- -- 0.0191 0.0350 0.0141 0.0331
------ ----- ----- ----- ------- ------- ------- -------
Less Distributions:
Dividends to Shareholders
From Net Investment
Income.................... -- -- -- -- (0.0191) (0.0350) (0.0141) (0.0331)
------ ----- ----- ----- ------- ------- ------- -------
Net Asset Value, End of
Period........................ $1.00 $1.00 $1.00 $1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ===== ===== ===== ======= ======= ======= =======
Total Return.................... -- -- -- -- 1.93% 3.57% 2.85%(1) 3.37%
Ratios/Supplemental Data:
Net Assets,
End of Period $(000)........ -- -- -- -- -- 27,656 75,004 31,163
Ratio of Expenses to Average
Daily Net Assets(2)......... -- -- -- -- .55% .55% .45%(1) .45%
Ratio of Net Investment Income
to Average Daily Net
Assets...................... -- -- -- -- 2.27% 3.50% 2.82%(1) 3.30%
<CAPTION>
DOLLAR SHARES
-------------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
01/31/95 01/31/94 01/31/93 01/31/92
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period............ $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- -------
Income From Investment
Operations:
Net Investment Income....... 0.0256 0.0198 0.0226 0.0350
------- ------- ------- -------
Less Distributions:
Dividends to Shareholders
From Net Investment
Income.................... (0.0256) (0.0198) (0.0226) (0.0350)
------- ------- ------- -------
Net Asset Value, End of
Period........................ $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= =======
Total Return.................... 2.59% 2.00% 2.29% 3.57%
Ratios/Supplemental Data:
Net Assets,
End of Period $(000)........ 11,026 19,098 11,750 6,599
Ratio of Expenses to Average
Daily Net Assets(2)......... .45% .45% .55% .55%
Ratio of Net Investment Income
to Average Daily Net
Assets...................... 2.54% 1.98% 2.27% 3.50%
</TABLE>
- ---------------
(1) Annualized.
(2) Operating expense ratios before waivers of Investment Adviser and
Administrator fees for Plus shares for the years ended January 31, 1993 and
1992 were .64%, and .73%, respectively. Operating expense ratios before
waivers of Investment Adviser and Administrator fees for Dollar shares for
the six months ended July 31, 1996 and for the years ended January 31, 1996,
1995, 1994, 1993 and 1992 were .72% (annualized), .73%, .73%, .74%, .73%,
and .73%, respectively.
(3) Only 100 Plus shares were outstanding during the period from December 1,
1992 to July 12, 1995. As of July 13, 1995 no Plus shares were outstanding.
See accompanying notes to financial statements.
13
<PAGE> 14
CALIFORNIA INTERMEDIATE MUNICIPAL FUND
MUNICIPAL FUND FOR CALIFORNIA INVESTORS, INC.
Financial Highlights
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
INTERMUNI SHARES
------------------------------------------------------------------
SIX MONTHS YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
07/31/96 01/31/96 01/31/95 01/31/94 01/31/93 01/31/92
---------- -------- -------- -------- -------- --------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period........................ $ 10.58 $ 10.02 $ 10.85 $ 10.72 $ 10.61 $ 10.34
-------- -------- -------- -------- -------- --------
Income From Investment Operations:
Net Investment Income.................................. 0.2511 0.5164 0.5165 0.5480 0.5655 0.6070
Net Realized and Unrealized Gain (Loss) on
Investments.......................................... (0.2327) 0.5993 (0.7959) 0.4110 0.2219 0.3296
-------- -------- -------- -------- -------- --------
Total from Investment Operations..................... 0.0184 1.1157 (0.2794) 0.9590 0.7874 0.9366
-------- -------- -------- -------- -------- --------
Less Distributions:
Dividends from Net Investment Income................... (0.2511) (0.5164) (0.5165) (0.5480) (0.5655) (0.6070)
Distributions from Net Capital Gains................... (0.0173) (0.0393) (0.0341) (0.2810) (0.1119) (0.0596)
-------- -------- -------- -------- -------- --------
Total Distributions.................................. (0.2684) (0.5557) (0.5506) (0.8290) (0.6774) (0.6666)
-------- -------- -------- -------- -------- --------
Net Asset Value, End of Period.............................. $ 10.33 $ 10.58 $ 10.02 $ 10.85 $ 10.72 $ 10.61
======== ======== ======== ======== ======== ========
Total Return................................................ 0.19% 11.36% (2.51%) 9.26% 7.68% 9.34%
Ratios/Supplemental Data:
Net Assets, End of Period $(000).......................... 12,742 14,926 17,432 20,061 17,318 19,516
Ratio of Expenses to Average Daily Net Assets(2).......... 0.20%(1) .20% .20% .20% .30% .30%
Ratio of Net Investment Income to Average Daily Net
Assets................................................. 4.86%(1) 4.97% 5.06% 5.06% 5.31% 5.80%
Portfolio Turnover Rate................................... 9% 26% 3% 23% 52% 63%
</TABLE>
- ---------------
(1) Annualized.
(2) Operating expense ratios before waivers of Investment Adviser and
Administrator fees for the six months ended July 31, 1996 and for the years
ended January 31, 1996, 1995, 1994, 1993 and 1992 were .52% (annualized),
.52%, .53%, .51%, .48% and .53%, respectively.
See accompanying notes to financial statements.
14
<PAGE> 15
Notes to Financial Statements
(Unaudited)
1. General Information
Municipal Fund for California Investors, Inc. (the "Company") is a no-load,
non-diversified, open-end management investment company registered under the
Investment Company Act of 1940, as amended. The Company consists of two separate
portfolios: California Money Fund and California Intermediate Municipal Fund.
California Money Fund offers three series of shares: California Money ("Money"),
California Money Dollar ("Dollar"), and California Money Plus ("Plus").
California Intermediate Municipal Fund also offers three series of shares:
California Intermuni ("Intermuni"), California Intermuni Dollar ("Intermuni
Dollar"), and California Intermuni Plus ("Intermuni Plus"). Shares of each
series represent equal pro rata interests in a single investment portfolio and
are identical in all respects except that the Dollar and Plus shares of each
portfolio bear the service fees described below and are entitled to vote
separately on matters relating to these fees.
Dollar shares and Intermuni Dollar shares are sold pursuant to a non-12b-1
shareholder services plan to institutions other than broker/dealers, and Plus
shares and Intermuni Plus shares are sold pursuant to a 12b-1 services plan only
to broker/dealers which enter into agreements with each portfolio requiring them
to provide certain support services to their customers in consideration of the
portfolio's payment of .25% (on an annualized basis) of the average daily net
asset value of such shares held by the institutions on behalf of their
customers. Dividends paid to Plus and Dollar shareholders are reduced by such
fees. In addition, broker/dealers purchasing Plus shares and Intermuni Plus
shares may be requested to provide assistance in connection with the
distribution of such shares. Money and Intermuni shares are sold to
institutional investors who choose not to enter into such servicing agreements
with the portfolio. No Intermuni Dollar shares or Intermuni Plus shares have
been sold as of July 31, 1996.
Certain California municipal obligations in the Company's portfolios may be
obligations of issuers which rely in whole or in part on California State
revenues, real property taxes, revenues from health care institutions, or
obligations secured by mortgages on real property. Consequently, the possible
effect of economic conditions in California or of California law on these
obligations must be considered.
2. Significant Accounting Policies
Portfolio valuation--California Money Fund: Portfolio securities are valued
at amortized cost which approximates market value. Amortized cost valuation
involves valuing an instrument at its cost initially and, thereafter, assuming a
constant amortization to maturity of any discount or premium.
Portfolio valuation--California Intermediate Municipal Fund: Portfolio
securities for which market quotations are readily available (other than debt
securities with remaining maturities of 60 days or less) are valued at the mean
of the most recent quoted bid and asked prices provided by investment dealers.
Market or fair value may be determined by a matrix pricing system which is used
to determine the value of municipal obligations based on factors such as yield,
price, maturities, call features and ratings on comparable securities. Debt
securities with remaining maturities of 60 days or less are valued on an
amortized cost basis.
Securities transactions and investment income: Securities transactions are
recorded on the trade date. Realized gains and losses on investments sold are
recorded on the identified cost basis. Interest income is recorded on the
accrual basis.
Dividends and distributions to shareholders: It is the policy of each
portfolio to declare dividends from net investment income daily and to pay such
dividends within five business days of the end of each month. Net realized
capital gains, if any, are distributed at least annually.
15
<PAGE> 16
Federal taxes: No provision is made for federal income or excise taxes
because the Company intends to have each portfolio continue to qualify as a
regulated investment company by complying with the applicable requirements of
the Internal Revenue Code and by distributing all of its earnings to its
shareholders.
3. Investment Advisory Fee, Administration Fee and Other Related Party
Transactions
The Company has entered into an Investment Advisory Agreement with PNC
Institutional Management Corporation (the "Investment Adviser"), an indirect
wholly-owned subsidiary of PNC Bank, National Association ("PNC Bank"). PNC Bank
serves as the Company's sub-investment adviser pursuant to a Sub-Advisory
Agreement between the Investment Adviser and PNC Bank. Under the Investment
Advisory Agreement, the Investment Adviser is entitled to receive a fee from the
Company, computed daily and payable monthly, at an annual rate of .20% of the
value of each portfolio's average daily net assets.
Provident Distributors, Inc. ("PDI"), serves as the Company's distributor.
No compensation is payable by the Company to PDI for its distribution services.
The Company has entered into an Administration Agreement with PFPC Inc.
("PFPC"), an indirect wholly-owned subsidiary of PNC Bank, and PDI (the
"Administrators"), for certain administrative services. Pursuant to their
administrative agreement with the Company, PFPC and PDI jointly are entitled to
receive a fee at an annual rate of .20% of each portfolio's average daily net
assets.
The Investment Adviser and the Administrators have agreed to reduce the
advisory and administration fees otherwise payable to them and to reimburse the
Portfolios for their operating expenses to the extent necessary to ensure that
their annual operating expense ratios (excluding fees paid to Service
Organizations pursuant to Servicing Agreements) do not exceed .20% of each
portfolio's average daily net assets.
For the six months ended July 31, 1996, with respect to California Money
Fund, the Investment Adviser and the Administrators voluntarily waived fees, on
an equal basis, totaling $631,601.
For the six months ended July 31, 1996, with respect to California
Intermediate Municipal Fund, the Investment Adviser and the Administrators
voluntarily waived fees, on an equal basis, totaling $22,326.
Expenses include legal fees paid to counsel to the Company, a partner of
which is secretary of the Company.
PNC Bank also serves as the Company's custodian and PFPC, a subsidiary of
PNC Bank, serves as transfer agent.
Service Organization fees of $950 were paid to affiliates of PNC Bank for
the six months ended July 31, 1996.
4. Fund Shares
Since California Money Fund has sold, issued as reinvestments of dividends
and redeemed shares only at a constant net asset value of $1.00 per share, the
number of shares represented by such sales, reinvestments and redemptions is the
same as the dollar amounts shown below for such transactions.
<TABLE>
<CAPTION>
CALIFORNIA MONEY FUND
--------------------------------
SIX MONTHS YEAR
ENDED ENDED
JULY 31, JANUARY 31,
1996 1996
------------- ---------------
(UNAUDITED)
<S> <C> <C>
Sold
Money Shares......... $ 774,516,768 $ 1,486,914,292
Plus Shares.......... -- --
Dollar Shares........ 221,630,387 231,371,826
Issued as reinvestments
of dividends
Money Shares......... 412,560 762,526
Plus Shares.......... -- --
Dollar Shares........ -- --
Redeemed
Money Shares......... (803,555,136) (1,483,616,508)
Plus Shares.......... -- (100)
Dollar Shares........ (177,788,483) (211,235,023)
------------- ---------------
Net increase........... $ 15,216,096 $ 24,197,013
============= ===============
</TABLE>
16
<PAGE> 17
<TABLE>
<CAPTION>
CALIFORNIA INTERMEDIATE MUNICIPAL FUND
-----------------------------------------------
SIX MONTHS ENDED YEAR ENDED
JULY 31, 1996 JANUARY 31, 1996
---------------------- ----------------------
SHARES VALUE SHARES VALUE
-------- ----------- -------- -----------
(UNAUDITED)
<S> <C> <C> <C> <C>
Sold
Intermuni
shares........... 79,069 $ 818,864 260,587 $ 2,716,097
Issued as
reinvestments of
dividends
Intermuni
shares........... 1,020 10,579 2,141 22,457
Redeemed
Intermuni
shares........... (256,313) (2,654,870) (591,434) (6,131,732)
-------- ----------- -------- -----------
Net decrease...... (176,224) $(1,825,427) (328,706) $(3,393,178)
======== =========== ======== ===========
</TABLE>
The authorized capital of the Company consists of 2.3 billion Money shares,
300 million Dollar shares, and 300 million Plus shares, 80 million Intermuni
shares, 10 million Intermuni Dollar shares and 10 million Intermuni Plus shares,
each with a par value of $.001.
5. Capital Loss Carryover
At January 31, 1996, California Money Fund had a capital loss carryover
amounting to $137,740 expiring at various times from 2001 to 2004, which is
available to offset possible future capital gains.
6. Purchases and Sales of Securities
For the six months ended July 31, 1996, purchases and sales of investment
securities (excluding short-term investments) of California Intermediate
Municipal Fund were $1,283,984 and $3,427,610, respectively.
7. Net assets
At July 31, 1996, net assets consisted of the following:
<TABLE>
<CAPTION>
CALIFORNIA
INTERMEDIATE
CALIFORNIA MUNICIPAL
MONEY FUND FUND
------------ -----------
<S> <C> <C>
Paid-in capital............. $436,399,799 $12,424,337
Accumulated net realized
gain (loss) on
investments............... (142,484) 3,816
Amortized market discount... -- 6,227
Net unrealized appreciation
of investments............ -- 307,673
------------ -----------
Total Net Assets............ $436,257,315 $12,742,053
============ ===========
</TABLE>
17
<PAGE> 18
[This page intentionally left blank.]
<PAGE> 19
Directors
G. Willing Pepper
Chairman
William R. Howell
Rodney D. Johnson
Rudolph A. Peterson
Anthony M. Santomero
Officers
G. Willing Pepper
President
Edward J. Roach
Vice President and Treasurer
Morgan R. Jones
Secretary
Investment Adviser
PNC Institutional Management Corporation
400 Bellevue Parkway
Wilmington, DE 19809
Co-Administrators
PFPC Inc.
400 Bellevue Parkway
Wilmington, DE 19809
Provident Distributors, Inc.
259 Radnor-Chester Road
Suite 120
Radnor, PA 19087
Distributor
Provident Distributors, Inc.
259 Radnor-Chester Road
Suite 120
Radnor, PA 19087
Transfer Agent
PFPC Inc.
P.O. Box 8950
Wilmington, DE 19885-9628
This report is submitted for the general information of the shareholders of the
Company. It is not authorized for distribution to prospective investors unless
accompanied or preceded by effective prospectuses for each portfolio of the
Company, which contain information concerning the investment policies of the
portfolios as well as other pertinent information.
PIF-T-011
CALIFORNIA MONEY FUND
CALIFORNIA INTERMEDIATE
MUNICIPAL FUND
Investment Portfolios
Offered by
Municipal Fund for
California Investors, Inc.
[PROVIDENT INSTITUTIONAL FUNDS LOGO]
Semi-Annual Report
to Shareholders
July 31, 1996
