<PAGE> 1
- -------------------------------------------------------------------------------
PROVIDENT
- -------------------------------------------------------------------------------
INSTITUTIONAL 400 Bellevue Parkway, Wilmington, DE 19809
FUNDS Phone: 302-792-2555 Fax: 302-792-5876
MUNICIPAL FUND FOR CALIFORNIA INVESTORS, INC.
March 3, 1997
Dear Shareholder:
We are pleased to present the Annual Report to Shareholders of Municipal
Fund for California Investors, Inc. for the year ended January 31, 1997.
The accompanying Investment Adviser's Report provides information on
California's economic growth and on the tax-exempt money market in general.
Provident Institutional Funds offers a broad range of high quality Taxable
and Tax-Exempt Money Market and Fixed Income Funds to meet the varied needs of
our investors. Please feel free to contact your account representative or 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.
ANNUAL INVESTMENT ADVISER'S REPORT
California's economy continues to show surprising resiliency. Employment is
growing at a faster rate than the nation as a whole and unemployment declined to
6.8% in December 1996, its lowest level since November 1990. This robust
economic growth is being driven by gains in high technology services,
manufacturing, foreign trade, and tourism. Jobs lost during the recession of the
early 1990's have been recovered as employment has reached record levels.
Personal income grew 7.2% in 1996. Growth in wages and salaries was over 2.5
times the growth in employment, reflecting the relatively large share of high
wage jobs created. In 1997, California expects to reach an economic milestone
and produce a gross state product in excess of $1 trillion. The improving
economy is also reflected in the State's revenue stream. As of January 1997,
year-to-date revenues are $300 million above forecast. The State's diminished
need to tap the short-term debt market in fiscal 1997 is reflected in the $3
billion RAN issue which represents a significant decline from the $7-10 billion
issued each year from 1993 through 1995.
Tempering the good economic news is the shadow being cast by Proposition
218 on the State's localities. The cities of Anaheim, Fresno, Los Angeles,
Sacramento and San Diego have already had their ratings downgraded a notch by
Moody's to reflect reduced budgetary flexibility. While these particular ratings
actions may have been premature, the impact of this most recent tax initiative
will be felt over time in tighter finances and weaker credit quality for many of
the State's local issues.
The tax-exempt money market experienced record growth during the twelve
months ended January 31, 1997. Assets of tax-free money funds rose to a record
$147 billion in early January due to contributions from maturing bonds, called
bonds and coupon interest payments. Yields on municipal notes maturing in one
year fell initially, but rebounded due to redemptions from tax-free money funds
and indications of economic strength. Yields in the tax-exempt market were
driven by the forces of supply and demand during the reporting period. Interest
rates fell during the first quarter of 1996 due to a lack of new supply. With
Federal Reserve policy on hold, CalMoney was defensive, holding shorter
maturities in anticipation of higher yields in late June through September when
the State of California and the local municipalities issued new short-term debt.
Due to a relatively flat yield curve and expectations of higher rates in
the summer, CalMoney kept its average weighted maturity shorter than the index
during the course of the year. As new issuance grew and supply increased, the
Fund captured some of these higher rates and purchased high quality notes and
tax-exempt commercial paper out along the yield curve.
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. On January 31, 1997, the CalMoney portfolio had assets
of $452.8 million. The performance of the CalMoney Fund remains competitive
within its peer group, ranking #5 among 54 California tax-exempt money market
funds, according to Lipper Analytical Services, Inc. for the year ended January
31, 1997.
PNC INSTITUTIONAL MANAGEMENT CORPORATION
2
<PAGE> 3
CALIFORNIA INTERMEDIATE MUNICIPAL FUND PORTFOLIO
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN CALIFORNIA INTERMEDIATE
MUNICIPAL FUND AND THE LEHMAN BROTHERS 5-YEAR BOND INDEX
(FOR EACH YEAR ENDED JANUARY 31)
<TABLE>
<CAPTION>
CALIFORNIA LEHMAN
INTERMEDIATE BROTHERS 5-
MEASUREMENT PERIOD MUNICIPAL YEAR BOND
(FISCAL YEAR COVERED) FUND INDEX
<S> <C> <C>
9/1/88 10000 10000
1989 10282 10335
1990 10971 11112
1991 12063 12140
1992 13124 13377
1993 14131 14526
1994 15438 15746
1995 15050 15596
1996 16760 17371
1997 17311 17988
</TABLE>
3
<PAGE> 4
CALIFORNIA MONEY FUND
MUNICIPAL FUND FOR CALIFORNIA INVESTORS, INC.
Statement of Net Assets
January 31, 1997
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- --------------------------------- ------- ------------
<S> <C> <C>
CALIFORNIA -- 90.16%
ABAG Finance Authority
Certificates of Participation
(Lucile Salter Packard
Childrens Hospital) DN (AMBAC
Insurance) (A-1+, VMIG-1)**
3.40%................. 02/07/97 $ 1,100 $ 1,100,000
Bay Area Government Association
(Lease Revenue Pooled
Projects) Series 1987 DN
(National Westminster LOC)
(VMIG-1)**
3.40%................. 02/07/97 2,422 2,422,000
California Educational
Facilities Authority Revenue
Bonds (Occidental College
Project) MB (Morgan Guaranty
LOC) (A-1+)
3.60%................. 06/02/97 9,600 9,600,000
California GO Series B TECP
(A-1, P-1)
3.45%................. 04/10/97 3,700 3,700,000
California Health Facilities
Financing Authority (Adventist
Health System West-Sutter
Health) Series 1991B DN
(Toronto Dominion LOC) (A-1+,
VMIG-1)**
3.50%................. 02/07/97 2,500 2,500,000
California Health Facilities
Financing Authority (Catholic
Healthcare West) Series 1988B
DN (MBIA Insurance) (A-1+,
VMIG-1)**
3.45%................. 02/07/97 1,000 1,000,000
California Health Facilities
Financing Authority (Pooled
Loan Program) Series 1987A DN
(Sanwa Bank LOC) (VMIG-1)**
3.40%................. 02/07/97 4,900 4,900,000
California Health Facilities
Financing Authority (Scripps
Memorial Hospital) Series
1985B DN (MBIA Insurance)**
(A-1+, VMIG-1)
3.40%................. 02/07/97 2,800 2,800,000
California Health Facilities
Financing Authority (St.
Francis Hospital) DN (MBIA
Insurance) (A-1+, VMIG-1)**
3.50%................. 02/07/97 4,900 4,900,000
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- --------------------------------- ------- ------------
<S> <C> <C>
California Health Facilities
Financing Authority RB (Sutter
CHS) Series 1996C DN
(Financial Security Assurance)
(A-1+)**
3.60%................. 02/01/97 $ 6,300 $ 6,300,000
California Pollution Control
Financing Authority DN
(Societe Generale LOC) (A-1+,
VMIG-1)**
3.40%................. 02/18/97 2,000 2,000,000
California RAN Series C-3 DN
(Bank of America LOC) (A-1+,
VMIG-1)**
3.50%................. 02/07/97 1,800 1,800,000
California RAN Series 1996-97
(SP-1+, MIG-1)
4.50%................. 06/30/97 2,500 2,505,200
California RAN Series 1996-97
DN (Bank of America LOC)
(A-1+, VMIG-1)**
3.40%................. 02/07/97 21,100 21,100,000
California Statewide
Communities Development
Authority Certificates of
Participation (Covenant
Retirement Communities, Inc.)
DN (ABN-AMRO Bank N.V. LOC)
(A-1+)**
3.50%................. 02/07/97 8,000 8,000,000
California Statewide
Communities Development
Authority Certificates of
Participation
(St. Joseph Health System)
DN (A-1+, VMIG-1)**
3.45%................. 02/07/97 12,300 12,300,000
California Statewide
Communities Development
Authority
Series 1995A-2 DN (Federal
National Mortgage Association)
(A-1+)**
3.40%................. 02/07/97 2,530 2,530,000
California Statewide
Communities Development
Authority
Series 1995A-4 DN (Federal
National Mortgage Association)
(A-1+)**
3.40%................. 02/07/97 10,000 10,000,000
California Statewide
Communities Development
Authority
Series 1995A-5 DN (Federal
National Mortgage Association)
(A-1+)**
3.40%................. 02/07/97 26,400 26,400,000
</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>
California Water Management
Certificates of Participation
(Monterey Peninsula Wastewater
Reclamation Project) DN
(Sumitomo Bank LOC)
(A-1, VMIG-1)**
3.55%................. 02/07/97 $ 5,500 $ 5,500,000
City of Stockton IDRB (La
Quinta Motor Inns) DN
(NationsBank LOC) (A-1)**
3.60%................. 02/07/97 1,990 1,990,000
Contra Costa Multifamily
Housing Revenue Bonds
(Riverside Apartments) Series
1992B DN (Federal National
Mortgage Association) (A-1+)**
3.45%................. 02/07/97 3,900 3,900,000
Corona Multifamily Housing
Revenue Refunding Bonds
(Country Hills Apartment
Project) Series 1995A DN (Bank
of America LOC) (A-1)**
3.45%................. 02/07/97 6,955 6,955,000
Eastern Municipal Water
District Facilities
Corporation Certificates of
Participation (Riverside
County Project) DN (FGIC
Insurance) (A-1+, VMIG-1)**
3.45%................. 02/07/97 900 900,000
Fremont Multifamily Housing
Bonds (Creekside Village
Apartments) Series D DN (Fuji
Bank LOC) (VMIG-1)**
3.40%................. 02/07/97 1,000 1,000,000
Fremont Multifamily Housing
Bonds (Mission Wells Project)
Series 1985E DN (Industrial
Bank of Japan LOC)
(A-1+, VMIG-1)**
3.65%................. 02/07/97 5,100 5,100,000
Grand Terrace Community
Redevelopment Agency
Multifamily RB (Mount Vernon
Villas) DN (Industrial Bank of
Japan LOC) (VMIG-1)**
3.65%................. 02/07/97 2,000 2,000,000
Kern County Certificates of
Participation (Kern Public
Facilities Project) Series A
DN (Sanwa Bank LOC) (VMIG-1)**
3.45%................. 02/07/97 3,500 3,500,000
Kern County Certificates of
Participation (Kern Public
Facilities Project) Series D
DN (Sanwa Bank LOC) (VMIG-1)**
3.45%................. 02/07/97 $ 2,300 $ 2,300,000
Los Angeles County Housing
Authority (Malibu Woods II
Project) Series B DN (Sumitomo
Bank LOC) (A-1)**
3.60%................. 02/07/97 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+)**
3.45%................. 02/07/97 11,600 11,600,000
Los Angeles County Pension
Obligation Revenue Refunding
Bonds Series C DN (Bank of
Nova Scotia LOC)
(A-1+, VMIG-1)**
3.40%................. 02/07/97 13,400 13,400,000
Los Angeles County
Transportation Commission
Sales Tax Revenue Refunding
Bonds Series 1992 DN (FGIC
Insurance)
(A-1+, VMIG-1)**
3.40%................. 02/07/97 7,500 7,500,000
Monterey County Financing
Authority RB (Reclamation &
Distribution Projects) DN
(Dai-Ichi Kangyo LOC)
(VMIG-1)**
3.70%................. 02/07/97 1,200 1,200,000
Oakland Certificates of
Participation (Capital
Improvement Project) DN
(Mitsubishi Bank LOC)
(A-1+, VMIG-1)**
3.75%................. 02/07/97 23,200 23,200,000
Oakland Economic Development
Revenue Bonds (Leamington
Project) Series 1994A DN
(First Interstate LOC) (A-1)**
3.50%................. 02/07/97 4,190 4,190,000
Pasadena Certificates of
Participation (Rose Bowl
Improvements) DN (Industrial
Bank of Japan LOC)
(A-1, VMIG-1)**
3.50%................. 02/07/97 6,900 6,900,000
</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>
Redlands Certificates of
Participation (Water Treatment
Facilities Project) DN (FGIC
Insurance) (A-1+, VMIG-1)**
3.50%................. 02/07/97 $ 2,500 $ 2,500,000
Redlands City Multifamily
Revenue Refunding Bonds
(Parkview Terrace Project)
Series 1991A DN (Bank of
America LOC) (VMIG-1)**
3.50%................. 02/07/97 3,000 3,000,000
Regents of the University of
California Series A TECP
(Escrowed in U.S. Treasuries)
3.60%................. 05/16/97 4,000 4,000,000
Riverside County Certificates
of Participation (Riverside
County Public Facility) Series
1985A DN (Sanwa Bank LOC)
(A-1+, VMIG-1)**
3.30%................. 02/07/97 2,900 2,900,000
Riverside County Certificates
of Participation (Riverside
County Public Facility) Series
1985B DN (Sanwa Bank LOC)
(A-1+, VMIG-1)**
3.45%................. 02/07/97 17,325 17,325,000
Riverside County Multifamily
Housing Bonds (Sierra Pines
Apartments Project)
Series 1991A DN (Swiss
Bank LOC) (A-1+)**
3.45%................. 02/07/97 4,715 4,715,000
Riverside County TRAN (SP-1+,
MIG-1)
4.50%................. 06/30/97 11,500 11,528,244
Riverside County TRAN
Series 1996B DN (Toronto
Dominion LOC) (SP-1+,
VMIG-1)**
3.45%................. 02/07/97 5,000 5,000,000
Rohnert Park Multifamily
Housing Bonds (Crossbrook
Apartments) Series A DN
(Federal National Mortgage
Association) (A-1+)**
3.45%................. 02/07/97 2,500 2,500,000
Sacramento Municipal Utility
District Series I TECP
(Bayerische Lb Girozentrale
LOC) (A-1+, P-1)
3.30%................. 03/21/97 2,000 2,000,000
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- --------------------------------- ------- ------------
<S> <C> <C>
San Bernardino County TRAN
(Landesbank Hessen-Thuringen
LOC) (SP-1+, MIG-1)
4.50%................. 06/30/97 $20,000 $ 20,060,697
San Diego Multifamily Housing
Bonds (Las Flores Project)
Series 1991A DN (Swiss Bank
LOC) (A-1+)**
3.45%................. 02/07/97 16,800 16,800,000
San Francisco City & County
Housing Authority Multifamily
Housing Revenue Bonds
(Winterland Project)
Series 1985C DN (Citibank LOC)
(A-1, VMIG-1)**
3.45%................. 02/07/97 7,000 7,000,000
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)**
3.50%................. 02/07/97 10,000 10,000,000
San Francisco City & County
Redevelopment Agency
Multifamily Housing Revenue
Bonds (South Harbor Project)
DN (VMIG-1)**
3.425%................ 02/07/97 14,000 14,000,000
San Jose Multifamily Housing
Bonds DN (FGIC Insurance)
(VMIG-1)**
3.45%................. 02/07/97 4,980 4,980,000
Santa Ana Health Facilities
Authority RB (Towne & Country)
DN (A-1+)**
3.55%................. 02/01/97 1,000 1,000,000
Santa Clara County El Camino
Hospital District (Valley
Medical Center) Series 1985B
DN (National Westminster Bank
LOC) (VMIG-1)**
3.45%................. 02/07/97 1,400 1,400,000
Santa Clara County El Camino
Hospital District (Valley
Medical Hospital) Series 1985A
DN (National Westminster
LOC)** (VMIG-1)
3.45%................. 02/07/97 7,800 7,800,000
Santa Clara Multifamily Housing
Bonds (Fox Chase Project) DN
(FGIC Insurance) (VMIG-1)**
3.45%................. 02/07/97 1,600 1,600,000
</TABLE>
6
<PAGE> 7
CALIFORNIA MONEY FUND
Statement of Net Assets (Concluded)
<TABLE>
<CAPTION>
INVESTMENTS IN MATURITY PAR
SECURITIES DATE (000) VALUE
- --------------------------------- ------- ------------
<S> <C> <C>
Southeast California Lease
Revenue Refunding Bonds
(Resource Recovery Facility
Authority) DN (Industrial Bank
of Japan LOC) (A-1, VMIG-1)**
3.60%................. 02/07/97 $ 6,300 $ 6,300,000
Southern California Public
Power Authority (Palo Verde
Project) Series B DN (Morgan
Guaranty LOC) (A-1+, VMIG-1)**
3.40%................. 02/07/97 1,600 1,600,000
Ventura County TRAN (SP-1+,
MIG-1)
4.75%................. 07/02/97 18,000 18,060,812
Washington Township Hospital
District (Alameda County) DN
(Industrial Bank of Japan
LOC)**
3.65%................. 02/07/97 7,300 7,300,000
------------
408,290,953
------------
PUERTO RICO -- 9.45%
Puerto Rico Government
Development Bank Series 1985
DN (Credit Suisse LOC) (A-1+,
VMIG-1)**
3.20%................. 02/07/97 3,800 3,800,000
Puerto Rico Government
Development Bank TECP (A-1+)
3.55%................. 02/06/97 11,500 11,500,000
3.45%................. 02/10/97 5,000 5,000,000
3.60%................. 02/13/97 12,800 12,800,000
3.55%................. 04/09/97 8,000 8,000,000
Puerto Rico Highway &
Transporation Authority
Highway Revenue Bonds Series X
DN (Landesbank
Hessen-Thuringen LOC) (A-1+,
VMIG-1)**
3.20%................. 02/07/97 1,300 1,300,000
Puerto Rico Industrial Medical
Higher Education &
Environmental Pollution
Control Facilities Authority
(Ana G. Mendez Education
Foundation Project) DN (Bank
of Tokyo LOC) (A-1+)**
3.55%................. 02/07/97 400 400,000
------------
42,800,000
------------
</TABLE>
<TABLE>
<CAPTION>
VALUE
------------
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(Cost $451,090,953*)........... 99.61% $451,090,953
OTHER ASSETS IN EXCESS OF
LIABILITIES.................... 0.39 1,751,204
------ ------------
NET ASSETS (Equivalent to $1.00
per share based on 326,654,041
California Money Shares and
126,322,209 California Dollar
Shares outstanding)............ 100.00% $452,842,157
======= ============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE
($452,842,157 / 452,976,250).. . $1.00
=====
- -------------
* Aggregate cost for federal income tax purposes is
$451,090,953.
** Variable rate demand notes -- the interest rate shown
is as of January 31, 1997, 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 January 31, 1997. The
ratings have not been verified by the Independent
Accountants and, therefore, are not covered by the
Report of the Independent Accountants.
- ---------------------------------------------------------
</TABLE>
CALIFORNIA MONEY FUND
SUPPLEMENTARY INFORMATION
Maturity Schedule of Portfolio
January 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
MATURITY
PERIOD PAR PERCENTAGE
- -------------- ------------ ----------
<S> <C> <C>
1-30 Days $371,636,000 82.4%
31-60 Days 2,000,000 0.4%
61-90 Days 11,700,000 2.6%
91-120 Days 4,000,000 0.9%
121-150 Days 43,600,000 9.7%
Over 150 Days 18,000,000 4.0%
</TABLE>
Average Weighted Maturity of Portfolio -- 29 days
- ---------------------------------------------------------
See accompanying notes to financial statements.
7
<PAGE> 8
CALIFORNIA INTERMEDIATE MUNICIPAL FUND
MUNICIPAL FUND FOR CALIFORNIA INVESTORS, INC.
Statement of Net Assets
January 31, 1997
<TABLE>
<CAPTION>
INVESTMENTS IN PAR
SECURITIES MATURITY (000) VALUE
- -------------------------------------- ----- -----------
<S> <C> <C> <C>
CALIFORNIA -- 91.52%
California Department of
Water Resources (Central
Valley Project) Series I
(Pre-Refunded 06/01/00
@ 101.50) RB (Aaa)
6.60%...................... 06/01/19 $ 400 $ 434,000
California Education
Authority (Pepperdine
University) RB (MBIA
Insurance) (Aaa)
6.80%...................... 11/01/00 500 543,125
California Education
Authority (Stanford
University) RB (Aaa)
5.50%...................... 11/01/00 500 523,750
California Health Facilities
Financing Authority
(Cedars-Sinai Hospital)
Series 1990 RB (Aa)
6.50%...................... 11/01/00 600 633,750
California Pollution Control
Financing Authority PCRB
(Southern California Edison
Company) Series 1986D DN
(A-1+, VMIG-1)**
3.70%...................... 02/07/97 200 200,000
City of Sacramento Financing
Authority (Pre-Refunded
11/01/01 @ 102) (Aaa)
6.70%...................... 11/01/11 500 558,125
East Bay Municipal Utility
District RB (AMBAC
Insurance) (Aaa)
7.00%...................... 06/01/00 800 867,000
Elk Grove Unified School
District (Pre-Refunded
12/01/98 @ 103) RB (FGIC
Insurance) (Aaa)
9.00%...................... 12/01/07 200 224,000
Irvine Ranch Water District
(Orange County Capital
Improvement Project) Series
1986 DN (Mitsubishi Bank
LOC)
(A-1+, VMIG-1)**
3.55%...................... 02/01/97 600 600,000
Los Angeles County TRAN
Series A (Aaa)
6.75%...................... 07/01/01 650 722,313
Los Angeles Department of
Water and Power (Electric
Plant) RB (Aa)
9.00%...................... 02/01/01 500 582,500
Metropolitan Water District
of Southern California RB
(Aa)
6.00%...................... 07/01/05 500 545,000
<CAPTION>
INVESTMENTS IN PAR
SECURITIES MATURITY (000) VALUE
- -------------------------------------- ------ -----------
<S> <C> <C> <C>
Northern California Power
Agency Public Power Revenue
Refunding (Geothermal
Project No. 3) Series B RB
(AMBAC Insurance) (Aaa)
5.50%...................... 07/01/00 $ 600 $ 624,750
Orange County Water District
Certificates of
Participation Series B DN
(National Westminster LOC)
(A-1+, VMIG-1)**
3.60%...................... 02/01/97 600 600,000
San Francisco Bay Area Rapid
Transit District Sales Tax
RB (A1)
6.60%...................... 07/01/99 600 630,000
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%...................... 07/01/00 600 639,000
Southern California Public
Power Authority (Refunding
Project) Series A RB (Aaa)
6.00%...................... 07/01/00 500 527,500
State of California Public
Works Board (Regents of The
University of California)
Series 1990A (Pre-Refunded
12/01/02 @ 102) RB (Aaa)
6.60%...................... 12/01/22 500 562,500
West Sacramento
Redevelopment Agency RB
(MBIA Insurance) (Aaa)
6.25%...................... 09/01/01 500 539,375
-----------
11,296,938
-----------
PUERTO RICO -- 4.56%
Puerto Rico Public Building
Authority (Public Education
& Health Facility) Series L
(Pre-Refunded 07/01/02
@ 101.50) RB (Aaa)
6.875%..................... 07/01/21 500 563,750
-----------
VIRGIN ISLANDS -- 4.49%
Virgin Islands Public
Finance Authority
(Pre-Refunded 10/01/00 @
101) RB (Aaa)
7.25%...................... 10/01/07 500 554,375
-----------
</TABLE>
8
<PAGE> 9
CALIFORNIA INTERMEDIATE MUNICIPAL FUND
Statement of Net Assets (Concluded)
<TABLE>
<CAPTION>
VALUE
-----------
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(Cost $12,094,619*)......... 100.57% $12,415,063
LIABILITIES IN EXCESS OF OTHER
ASSETS...................... (0.57) (70,959)
----- -----------
NET ASSETS (Equivalent to $10.35
per share based on 1,193,141
California Intermuni Shares
outstanding)................ 100.00% $12,344,104
====== ===========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE
($12,344,104 / 1,193,141)................... $10.35
======
</TABLE>
<TABLE>
<S> <C>
- -------------
* Aggregate cost for federal income tax purposes
is $12,094,619. Net unrealized appreciation
for all securities is as follows:
Excess of value over tax cost.......... $338,134
Excess of tax cost over value.......... (17,690)
--------
$320,444
========
</TABLE>
** Variable rate demand notes -- the interest rate shown is
as of January 31, 1997, 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 January 31, 1997. The
ratings have not been verified by the Independent
Accountants and, therefore, are not covered by the
Report of the Independent Accountants.
- ---------------------------------------------------------
CALIFORNIA INTERMEDIATE
MUNICIPAL FUND
SUPPLEMENTARY INFORMATION
January 31, 1997
(Unaudited)
Average Weighted Maturity of Portfolio -- 3.59 years
- ---------------------------------------------------------
<TABLE>
<CAPTION>
INVESTMENT ABBREVIATIONS:
<S> <C>
DN Demand Notes (Variable Rate)
GO General Obligation
IDRB Industrial Development Revenue Bond
LOC Letter of Credit
MB Municipal Bonds
PCRB Pollution Control Revenue Bond
RAN Revenue Anticipation Notes
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
Year Ended January 31, 1997
<TABLE>
<CAPTION>
CALIFORNIA CALIFORNIA
MONEY INTERMEDIATE
FUND MUNICIPAL FUND
----------- --------------
<S> <C> <C>
Investment income:
Interest.................................................. $14,921,286 $ 662,853
----------- ---------
Expenses:
Investment advisory fee................................... 890,017 26,199
Administration fee........................................ 890,017 26,199
Service Organization fees:
Dollar Shares.......................................... 187,911 --
Custodian fees............................................ 111,505 3,826
Legal fees................................................ 38,382 1,201
Transfer agent fees....................................... 44,854 2,253
Audit fees................................................ 48,171 1,412
Directors' and Officer's fees and expenses................ 44,137 1,362
Registration and filing fees.............................. 6,362 50
Printing.................................................. 14,429 3,285
Shareholder computer access program....................... 23,545 --
Other..................................................... 23,548 3,594
----------- ---------
2,322,878 69,381
Fees waived by Investment Adviser and Administrators...... (1,242,601) (43,114)
----------- ---------
Total expenses......................................... 1,080,277 26,267
----------- ---------
Net investment income................................ 13,841,009 636,586
----------- ---------
Realized and unrealized gain (loss) on investments:
Net realized gain on investments sold..................... 3,647 63,838
Decrease in unrealized appreciation of investments........ -- (322,955)
Decrease in amortized market discount..................... -- (2,866)
----------- ---------
Net gain (loss) on investments....................... 3,647 (261,983)
----------- ---------
Net increase in net assets resulting from operations........ $13,844,656 $ 374,603
=========== =========
</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
----------------------------- -------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JANUARY 31, JANUARY 31, JANUARY 31, JANUARY 31,
1997 1996 1997 1996
------------ ------------ ----------- -----------
<S> <C> <C> <C> <C>
Net investment income.......... $ 13,841,009 $ 15,010,539 $ 636,586 $ 774,637
Net realized and unrealized
gain (loss) on investments... 3,647 (1,064) (261,983) 942,408
------------ ------------ ----------- -----------
Net increase in net assets
resulting from operations.... 13,844,656 15,009,475 374,603 1,717,045
------------ ------------ ----------- -----------
Distributions to shareholders
from:
Net investment income:
Money shares.............. (11,634,731) (14,224,381) -- --
Plus shares............... -- -- -- --
Dollar shares............. (2,206,278) (786,158) -- --
Intermuni shares.......... -- -- (636,586) (774,637)
Net realized capital gains... -- -- (72,113) (55,495)
------------ ------------ ----------- -----------
Total distributions............ (13,841,009) (15,010,539) (708,699) (830,132)
------------ ------------ ----------- -----------
Increase (decrease) in net
assets from capital share
transactions................. 31,792,547 24,197,013 (2,247,754) (3,393,178)
------------ ------------ ----------- -----------
Net increase (decrease) in net
assets....................... 31,796,194 24,195,949 (2,581,850) (2,506,265)
Net assets:
Beginning of period.......... 421,045,963 396,850,014 14,925,954 17,432,219
------------ ------------ ----------- -----------
End of period................ $452,842,157 $421,045,963 $12,344,104 $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
-------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
01/31/97 01/31/96 01/31/95 01/31/94 01/31/93
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period.......................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- -------
Income From Investment Operations:
Net Investment Income.................................... 0.0316 0.0356 0.0281 0.0223 0.0251
------- ------- ------- ------- -------
Less Distributions:
Dividends to Shareholders From Net Investment Income..... (0.0316) (0.0356) (0.0281) (0.0223) (0.0251)
------- ------- ------- ------- -------
Net Asset Value, End of Period................................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= =======
Total Return.................................................. 3.21% 3.62% 2.84% 2.25% 2.54%
Ratios/Supplemental Data:
Net Assets, End of Period $(000)............................ 326,521 389,883 385,824 356,501 359,193
Ratio of Expenses to Average Daily Net Assets(1)............ .20% .20% .20% .20% .30%
Ratio of Net Investment Income to Average Daily Net
Assets................................................... 3.15% 3.55% 2.79% 2.23% 2.52%
</TABLE>
- ---------------
(1) Operating expense ratios before waivers of Investment Adviser and
Administrators fees for Money Shares for the years ended January 31, 1997,
1996, 1995, 1994 and 1993 were .48%, .48%, .48%, .49% 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
----------------------------------------------------------- --------------------------------------------
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
01/31/97(2) 01/31/96(2) 01/31/95(2) 01/31/94(2) 01/31/93(2) 01/31/97 01/31/96 01/31/95 01/31/94 01/31/93
----------- ----------- ----------- ----------- ----------- -------- -------- -------- -------- --------
<S> <C> <C> <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 $ 1.00 $ 1.00
----- ----- ----- ----- -------- -------- -------- -------- -------- --------
Income From
Investment
Operations:
Net Investment
Income...... -- -- -- -- 0.0191 0.0291 0.0331 0.0256 0.0198 0.0226
----- ----- ----- ----- -------- -------- -------- -------- -------- --------
Less
Distributions:
Dividends to
Shareholders
From Net
Investment
Income...... -- -- -- -- (0.0191) (0.0291) (0.0331) (0.0256) (0.0198) (0.0226)
----- ----- ----- ----- -------- -------- -------- -------- -------- --------
Net Asset Value,
End of Period... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
===== ===== ===== ===== ======== ======== ======== ======== ======== ========
Total Return...... -- -- -- -- 1.93% 2.96% 3.37% 2.59% 2.00% 2.29%
Ratios/Supplemental
Data:
Net Assets,
End of Period
$(000)........ -- -- -- -- -- 126,321 31,163 11,026 19,098 11,750
Ratio of
Expenses to
Average Daily
Net
Assets(1)..... -- -- -- -- .55% .45% .45% .45% .45% .55%
Ratio of Net
Investment
Income to
Average Daily
Net Assets.... -- -- -- -- 2.27% 2.90% 3.30% 2.54% 1.98% 2.27%
</TABLE>
- ---------------
(1) Operating expense ratio before waivers of Investment Adviser and
Administrators fees for Plus Shares for the year ended January 31, 1993 was
.64%. Operating expense ratios before waivers of Investment Adviser and
Administrator fees for Dollar Shares for the years ended January 31, 1997,
1996, 1995, 1994 and 1993 were .73%, .73%, .73%, .74% and .73%,
respectively.
(2) Only 100 Plus Shares were outstanding during the period from December 1,
1992 to July 12, 1995. Since July 13, 1995 no Plus Shares have been
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
----------------------------------------------------
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
01/31/97 01/31/96 01/31/95 01/31/94 01/31/93
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period.................................. $ 10.58 $ 10.02 $ 10.85 $ 10.72 $ 10.61
-------- -------- -------- -------- --------
Income From Investment Operations:
Net Investment Income............................................ 0.5043 0.5164 0.5165 0.5480 0.5655
Net Realized and Unrealized Gain (Loss) on Investments........... (0.1703) 0.5993 (0.7959) 0.4110 0.2219
-------- -------- -------- -------- --------
Total from Investment Operations............................... 0.3340 1.1157 (0.2794) 0.9590 0.7874
-------- -------- -------- -------- --------
Less Distributions:
Dividends from Net Investment Income............................. (0.5043) (0.5164) (0.5165) (0.5480) (0.5655)
Distributions from Net Capital Gains............................. (0.0597) (0.0393) (0.0341) (0.2810) (0.1119)
-------- -------- -------- -------- --------
Total Distributions............................................ (0.5640) (0.5557) (0.5506) (0.8290) (0.6774)
-------- -------- -------- -------- --------
Net Asset Value, End of Period........................................ $ 10.35 $ 10.58 $ 10.02 $ 10.85 $ 10.72
======== ======== ======== ======== ========
Total Return.......................................................... 3.29% 11.36% (2.51%) 9.26% 7.68%
Ratios/Supplemental Data:
Net Assets, End of Period $(000).................................... 12,344 14,926 17,432 20,061 17,318
Ratio of Expenses to Average Daily Net Assets(1).................... .20% .20% .20% .20% .30%
Ratio of Net Investment Income to Average Daily Net Assets.......... 4.86% 4.97% 5.06% 5.06% 5.31%
Portfolio Turnover Rate............................................. 10% 26% 3% 23% 52%
</TABLE>
- ---------------
(1) Operating expense ratios before waivers of Investment Adviser and
Administrators fees for the years ended January 31, 1997, 1996, 1995, 1994
and 1993 were .53%, .52%, .53%, .51%, and .48%, respectively.
See accompanying notes to financial statements.
14
<PAGE> 15
Notes to Financial Statements
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 January 31, 1997.
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
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from these
estimates. The following is a summary of significant accounting policies
consistently followed by the Company in the preparation of its financial
statements.
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.
15
<PAGE> 16
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.
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 year ended January 31, 1997, with respect to California Money Fund,
the Investment Adviser and the Administrators voluntarily waived fees, on an
equal basis, totaling $1,242,601.
For the year ended January 31, 1997, with respect to California
Intermediate Municipal Fund, the Investment Adviser and the Administrators
voluntarily waived fees, on an equal basis, totaling $43,114.
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 $2,115 were paid to affiliates of PNC Bank for
the year ended January 31, 1997.
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.
16
<PAGE> 17
<TABLE>
<CAPTION>
CALIFORNIA MONEY FUND
---------------------------------
YEAR YEAR
ENDED ENDED
JANUARY 31, JANUARY 31,
1997 1996
--------------- ---------------
<S> <C> <C>
Sold
Money Shares................. $ 1,314,241,799 $ 1,486,914,292
Plus Shares.................. -- --
Dollar Shares................ 509,290,689 231,371,826
Issued as reinvestments of
dividends
Money Shares................. 1,127,557 762,526
Plus Shares.................. -- --
Dollar Shares................ -- --
Redeemed
Money Shares................. (1,378,733,746) (1,483,616,508)
Plus Shares.................. -- (100)
Dollar Shares................ (414,133,752) (211,235,023)
--------------- ---------------
Net increase.................. $ 31,792,547 $ 24,197,013
=============== ===============
</TABLE>
<TABLE>
<CAPTION>
CALIFORNIA INTERMEDIATE MUNICIPAL FUND
-----------------------------------------------
YEAR ENDED YEAR ENDED
JANUARY 31, 1997 JANUARY 31, 1996
---------------------- ----------------------
SHARES VALUE SHARES VALUE
-------- ----------- -------- -----------
<S> <C> <C> <C> <C>
Sold
Intermuni
Shares......... 318,536 $ 3,239,976 260,587 $ 2,716,097
Issued as
reinvestments of
dividends
Intermuni
Shares......... 3,315 34,309 2,141 22,457
Redeemed
Intermuni
Shares......... (539,018) (5,522,039) (591,434) (6,131,732)
-------- ----------- -------- -----------
Net decrease...... (217,167) $(2,247,754) (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.
On January 31, 1997, one shareholder held 53.68% of the outstanding shares
of the California Intermediate Municipal Fund Portfolio.
5. Capital Loss Carryover
At January 31, 1997, California Money Fund had a capital loss carryover
amounting to $134,093 expiring at various times from 2001 to 2004, and is
available to offset possible future capital gains.
6. Purchases and Sales of Securities
For the year ended January 31, 1997, purchases and sales of investment
securities (excluding short-term investments) of California Intermediate
Municipal Fund were $1,283,984 and $4,937,878, respectively.
7. Net assets
At January 31, 1997, net assets consisted of the following:
<TABLE>
<CAPTION>
CALIFORNIA
INTERMEDIATE
CALIFORNIA MUNICIPAL
MONEY FUND FUND
------------ -----------
<S> <C> <C>
Paid-in capital...................... $452,976,250 $12,002,010
Accumulated net realized gain (loss)
on investments...................... (134,093) 15,822
Amortized market discount............ -- 5,828
Net unrealized appreciation of
investments......................... -- 320,444
------------ -----------
Total Net Assets..................... $452,842,157 $12,344,104
============ ===========
</TABLE>
8. Subsequent Event
On March 7, 1997, the Board of Directors of the Company approved a
recommendation of the Investment Adviser to discontinue the California
Intermediate Municipal Fund Portfolio as of April 21, 1997. Shares outstanding
on that date will be redeemed by the Company.
17
<PAGE> 18
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Board of Directors of Municipal Fund For California
Investors, Inc.
We have audited the accompanying statements of net assets of Municipal Fund
For California Investors, Inc. (the "Fund"), comprising, respectively, the
California Money Fund and California Intermediate Municipal Fund portfolios, as
of January 31, 1997, and the related statements of operations for the year then
ended, the statements of changes in net assets for each of the two years in the
period then ended, and the financial highlights for each of the five years in
the period then ended. These financial statements and financial highlights are
the responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of investments owned as of
January 31, 1997 by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
each of the respective portfolios comprising the Municipal Fund For California
Investors, Inc. as of January 31, 1997, the results of their operations for the
year then ended, the changes in their net assets for each of the two years in
the period then ended, and the financial highlights for each of the five years
in the period then ended, in conformity with generally accepted accounting
principles.
COOPERS & LYBRAND L.L.P.
2400 Eleven Penn Center
Philadelphia, Pennsylvania
February 25, 1997 except for
Note 8, for which the date
is March 7, 1997
18
<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.
Four Falls Corporate Center
6th Floor
West Conshohocken, PA 19428
Distributor
Provident Distributors, Inc.
Four Falls Corporate Center
6th Floor
West Conshohocken, PA 19428
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-A-011
CALIFORNIA MONEY FUND
CALIFORNIA INTERMEDIATE
MUNICIPAL FUND
Investment Portfolios
Offered by
Municipal Fund for
California Investors, Inc.
Provident Institutional Funds Logo
Annual Report to Shareholders
January 31, 1997
