<PAGE>
400 Bellevue Parkway
4th Floor
Wilmington, DE 19809
302-793-8100
www.pif.com
[PROVIDENT LOGO APPEARS HERE]
MUNICIPAL FUND FOR CALIFORNIA INVESTORS, INC.
March 4, 1999
Dear Shareholder:
We are pleased to present the Annual Report to Shareholders of California
Money Fund for the period ended January 31, 1999.
Commentary of California's improving economy and on recent developments in
our Fund are contained in the accompanying Investment Adviser's Report.
We would like to thank our shareholders for a successful proxy which
resulted in the reorganization of the Provident Institutional Funds into a
single Delaware business trust.
Provident Institutional Funds offer a variety of high quality Taxable and
Tax-Exempt Money Market Funds to meet the varied needs of our investors.
Please contact your 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/ Rodney D. Johnson
Rodney D. Johnson
Chairman
<PAGE>
MUNICIPAL FUND FOR CALIFORNIA INVESTORS, INC.
Annual Report of the Investment Adviser
The Asian economic crisis slowed California's growth last year, but the
State's increasingly diversified economy helped mitigate the impact.
Employment continued to expand in nearly all sectors, except for
manufacturing, where a loss of over 14,000 jobs in the aerospace/high
technology industry occurred. Unemployment in December was 5.9%, down from
6.0% a year earlier. The good economic news had a positive impact upon the
State's fiscal picture. Unaudited results for the fiscal year ended June 30,
1998, indicated the General Fund operations produced a surplus of $2.1
billion. There is concern, however, that revenues are not meeting budget in
the current fiscal year. Fiscal year-to-date revenues from personal income
tax, sales and use tax, and various specialty taxes appear to be falling short
of projections. Some legislative analysts predict a shortfall of nearly $1
billion. While this forecast is not universally shared, it serves as a caution
for the new administration and warrants increased scrutiny.
During the course of the year, the trend in short-term tax free rates was
down, especially for fixed rate notes and tax-exempt commercial paper. Yields
on California revenue anticipation notes, for example, trended down from 3.53%
in January 1998 to 2.75% in January 1999. However, during the same period,
shorter maturity, more liquid variable rate demand notes traded at higher
levels, as municipalities refinanced their short-term debt in favor of longer
maturity bonds. This scenario created an inverted yield curve for much of the
year and provided little incentive to extend the Fund's average maturity.
Due to the reduction of supply in fixed rate notes and the three reductions in
the federal funds rate by the Federal Reserve, new cash was primarily invested
in variable rate instruments. The strategy of buying highly liquid securities,
with one and seven-day put features, enabled the Fund to benefit from the
inverted yield curve and frequent rate resets which, on average, exceeded the
yield on longer, fixed rate municipal securities such as tax-exempt commercial
paper and put bonds. The high level of liquidity also provided the flexibility
to extend during periods of market weakness. For example, amid the financial
turmoil in the third quarter, the Fund purchased one-year notes to mature in
June 1999 in anticipation of an easing in monetary policy by the Federal
Reserve.
The selection of high quality securities remained a primary objective in the
management of the Fund's portfolio, which ended the period with 97% of the
securities rated AA or better. In the third and fourth quarters, our research
analysts determined that weakening economic conditions in Asia, and elsewhere,
made certain municipal issues susceptible to economic and credit risk,
particularly in Japanese banks or banks exposed to Russia. Portfolio holdings
of securities enhanced by Japanese bank letters of credit were substantially
reduced, therefore, and only certain issues with seven-day maximum maturities
remained in the portfolio during the period.
For the one-year period ended January 31, 1999, CalMoney remained very
competitive within its peer group ranking #4 among 55 California tax-exempt
money market funds, according to Lipper Analytical Services.
BlackRock Institutional Management
Corporation
2
<PAGE>
California Money Fund
Municipal Fund for California Investors, Inc.
Statement of Net Assets
January 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Maturity Par
Investments in Securities Date (000) Value
- ------------------------- -------- ------- ------------
<S> <C> <C> <C>
CALIFORNIA--95.8%
ABAG Finance Authority Certificates of Participation (Lucile
Salter Packard Childrens Hospital) DN (AMBAC Insurance) (A-
1+, VMIG-1)**
2.30%...................................... 02/07/99 $ 3,800 $ 3,800,000
California Educational Facilities Authority (Stanford
University) Series 1996L DN (A-1+, VMIG-1)**
2.20%...................................... 02/07/99 7,275 7,275,000
California Health Facilities Financing Authority (Adventist
Health System West-Sutter Health) Series 1991B DN (Toronto
Dominion LOC)
(A-1+, VMIG-1)**
2.20%...................................... 02/07/99 2,000 2,000,000
California Health Facilities Financing Authority (Catholic
Healthcare West) Series 1988C DN (MBIA Insurance) (A-1+,
VMIG-1)**
2.30%...................................... 02/07/99 2,200 2,200,000
California Health Facilities Financing Authority (Pooled Loan
Program) Series 1985B DN (Morgan Guaranty LOC) (A-1+, VMIG-
1)**
2.10%...................................... 02/07/99 4,000 4,000,000
California Health Facilities Financing Authority (Pooled Loan
Program) Series 1987A DN (Raobobank Nederland LOC) (VMIG-
1)**
2.10%...................................... 02/07/99 100 100,000
California Health Facilities Financing Authority (Scripps
Memorial Hospital) Series A DN (MBIA Insurance) (A-1+, VMIG-
1)**
2.35%...................................... 02/07/99 5,000 5,000,000
California Health Facilities Financing Authority (Scripps
Memorial Hospital) Series 1985B DN (MBIA Insurance) (A-1+,
VMIG-1)**
2.35%...................................... 02/07/99 2,800 2,800,000
California Health Facilities Financing Authority
(St. Joseph's Health System) Series 1985B DN
(A-1+, VMIG-1)**
3.00%...................................... 02/01/99 700 700,000
California Health Facilities Financing Authority
(St. Joseph's Health System) Series 1991B DN
(A-1+, VMIG-1)**
3.00%...................................... 02/01/99 5,400 5,400,000
California Health Facilities Financing Authority RB (Catholic
Health Care) Series C DN
(A-1+, VMIG-1)**
2.30%...................................... 02/07/99 4,000 4,000,000
California Health Facilities Financing Authority RB
(St. Francis Catholic Healthcare) Series C DN
(MBIA Insurance) (A-1+, VMIG-1)**
2.30%...................................... 02/07/99 $ 1,000 $ 1,000,000
California Health Facilities Financing Authority RB (Sutter
CHS) Series 1996C DN (FSA Insurance) (A-1+)**
3.00%...................................... 02/01/99 14,650 14,650,000
California Health Facilities Financing Authority RB (Sutter
CHS) Series B DN (A-1+, VMIG-1)**
3.00%...................................... 02/01/99 5,200 5,200,000
California Health Facilities Financing Authority RB Trust
Receipts Series 17 DN (MBIA Insurance) (A-1+, VMIG-1)**
2.75%...................................... 02/07/99 34,885 34,885,000
California Municipal Trust Certificate GO DN
(Banc One N.A. LOC) (SP-1+, MIG-1)**
2.82%...................................... 02/07/99 20,545 20,545,000
California Pollution Control Financing Authority PCRB
(Pacific Gas & Electric Company)
Series 1996C DN (Bank of America LOC)
(A-1+, VIMG1)**
3.10%...................................... 02/01/99 20,300 20,300,000
California Pollution Control Financing Authority PCRB
(Southern California Edison Company)
Series B DN (A-1+, P-1)**
3.20%...................................... 02/01/99 1,900 1,900,000
California Pollution Control Financing Authority PCRB
(Southern California Edison Company) Series B DN (National
Westminster LOC) (A-1+, P-1)**
3.20%...................................... 02/01/99 400 400,000
California Pollution Control Financing Authority PCRB
(Southern California Edison Company)
Series 1986C DN (A-1+, P-1)**
3.20%...................................... 02/01/99 400 400,000
California RAN (SP-1+, MIG-1)
4.00%...................................... 06/30/99 16,600 16,656,198
California School Facilities Financing Corporation (Capital
Improvement Project) Series B DN (Bayerische Landesbank
Girozentrale LOC) (VMIG-1)**
2.30%...................................... 02/07/99 18,700 18,700,000
</TABLE>
3
<PAGE>
California Money Fund
Statement of Net Assets (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Maturity Par
Investments in Securities Date (000) Value
- ------------------------- -------- ------ ----------
<S> <C> <C> <C>
CALIFORNIA (Continued)
California State Economic Development RB (California
Independent System Operator Corporation)
Series 1998C DN (Bank of America LOC)**
3.15%......................................... 02/01/99 $9,600 $9,600,000
California Statewide Communities Development Authority
Certificates of Participation (Covenant Retirement
Communities, Inc.) DN (ABN-AMRO Bank N.V. LOC) (A-1+, VMIG-
1)**
2.50%......................................... 02/07/99 7,700 7,700,000
California Statewide Communities Development Authority
Certificates of Participation (St. Joseph Health System) DN
(A-1+, VMIG-1)**
2.25%......................................... 02/07/99 5,000 5,000,000
California Statewide Communities Development Authority Trust
Receipts Series 1998A DN
(Bank of New York LOC) (A-1+)**
2.75%......................................... 02/07/99 17,300 17,300,000
California Trust Receipts Series 58 DN
(FGIC Insurance) (SP-1+, MIG-1)**
2.65%......................................... 02/07/99 11,065 11,065,000
City of Chula Vista IDRB (San Diego Gas & Electric) Series
1996A DN (A-1, VMIG-1)**
3.00%......................................... 02/01/99 4,000 4,000,000
City of Stockton IDRB (La Quinta Motor Inns) DN (NationsBank
LOC) (A-1)**
2.75%......................................... 02/07/99 1,070 1,070,000
Contra Costa Multifamily Housing RB (Lakeshore Apartments)
Series 1992C DN (Federal National Mortgage Association) (A-
1+)**
2.30%......................................... 02/07/99 4,000 4,000,000
Corona Multifamily Housing RB (Country Hills Apartment Project)
Series 1995A DN (Bank of America LOC) (A-1)**
2.30%......................................... 02/07/99 6,775 6,775,000
Eastern Municipal Water District Facilities Corporation
Certificates of Participation (Riverside County Project) DN
(FGIC Insurance)
(A-1+, VMIG-1)**
2.30%......................................... 02/07/99 4,200 4,200,000
Foothill Eastern Corridor Agency (California Toll Road Project)
Series D DN (J.P. Morgan LOC) (A-1+)**
2.35%......................................... 02/07/99 1,400 1,400,000
Fremont Multifamily Housing Bonds (Creekside Village
Apartments) Series D DN (Kredietbank LOC) (VMIG-1)**
2.25%......................................... 02/07/99 $4,000 $4,000,000
Golden Empire Schools Financing Authority (Kern High School
District Project) Series A DN (Canadian Imperial Bank LOC) (A-
1+)**
2.15%......................................... 02/07/99 10,555 10,555,000
Golden Empire Schools Financing Authority (Kern High School
District Project) Series B DN (National Westminster LOC) (A-
1+)**
2.15%......................................... 02/07/99 18,500 18,500,000
Hayward Multifamily Housing Bonds (Shorewood Apartment Project)
Series A DN
(FGIC Insurance) (VMIG-1)**
2.30%......................................... 02/07/99 6,000 6,000,000
Irvine Ranch Water District Sewer Bonds (Orange County) Series
1988A DN (Landesbank Hessen--Thuringen LOC) (A-1+)**
3.20%......................................... 02/01/99 4,200 4,200,000
Irvine Ranch Water District DN (Bank of America LOC) (A-1,
VMIG-1)**
3.00%......................................... 02/01/99 9,245 9,245,000
Kern County Certificates of Participation (Kern Public
Facilities Project) Series B DN (UBS LOC) (VMIG-1)**
2.30%......................................... 02/07/99 4,000 4,000,000
Los Angeles Convention & Exposition Center Authority Lease RB
Series D DN (Bank of New York LOC) (A-1+, VMIG-1)**
2.75%......................................... 02/07/99 12,725 12,725,000
Los Angeles County Asset Lease Revenue Bonds TECP (Westdeutsche
Landesbank Girozentrale LOC) (A-1+, P-1)
2.70%......................................... 02/09/99 16,650 16,650,000
Los Angeles County Metropolitan Transportation Authority Second
Subordinate Sales Tax Revenue Notes Series A DN (MBIA
Insurance) (A-1+)**
2.30%......................................... 02/07/99 6,000 6,000,000
Los Angeles County Multifamily Housing RB (Malibu Meadows
Project) Series 1998B DN (Federal National Mortgage
Association) (A-1+)**
2.35%......................................... 02/07/99 3,000 3,000,000
</TABLE>
4
<PAGE>
California Money Fund
Statement of Net Assets (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Maturity Par
Investments in Securities Date (000) Value
- ------------------------- -------- ------ ----------
<S> <C> <C> <C>
CALIFORNIA (Continued)
Los Angeles County Multifamily Housing RB
(Valencia Village Project) Series 1984C DN
(Bayerische Landesbank Girozentrale LOC)
(A-1+)**
2.55%..................... 02/07/99 $9,900 $9,900,000
Los Angeles County Pension Obligation
Revenue Refunding Bonds Series C DN (Bank
of Nova Scotia LOC) (A-1+, VMIG-1)**
2.20%..................... 02/07/99 1,500 1,500,000
Los Angeles County TRAN (SP-1+, MIG-1)
4.50%..................... 06/30/99 31,000 31,101,135
Los Angeles County Transportation
Commission Sales Tax Revenue Refunding
Bonds Series 1992 DN (FGIC Insurance) (A-
1+, VMIG-1)**
2.20%..................... 02/07/99 16,300 16,300,000
Los Angeles Metropolitan Transportation
Authority Sales Tax RB Series A TECP
(National Westminster LOC) (A-1+, P-1)
2.70%..................... 02/10/99 5,300 5,300,000
Los Angeles Unified School District TRAN
Series 1998-1999 (SP-1+, MIG-1)
4.50%..................... 07/01/99 9,000 9,031,068
Metropolitan Water District of Southern
California Series A DN (ABN-AMRO Bank N.V.
LOC) (A-1+, VMIG-1)**
2.30%..................... 02/07/99 1,900 1,900,000
Metropolitan Water District of Southern
California Series B (Westdeutsche
Landesbank Girozentrale LOC) (A-1+, P-1)
3.00%..................... 03/09/99 10,000 10,000,000
Oakland Certificates of Participation
(Capital Improvement Project) DN (National
Westminster LOC)**
2.75%..................... 02/07/99 30,790 30,790,000
Ontario Multifamily RB (Residential Park
Center) DN (Royal Bank of Canada LOC)
(VMIG-1)**
2.40%..................... 02/07/99 8,900 8,900,000
Pomona Redevelopment Agency Multifamily RB
Series A DN (Federal National Mortgage
Association) (A-1+)**
2.35%..................... 02/07/99 2,400 2,400,000
Redlands City Multifamily Revenue Refunding
Bonds (Parkview Terrace Project) Series
1991A DN (Bank of America LOC) (VMIG-1)**
2.35%..................... 02/07/99 3,000 3,000,000
Riverside County Certificates of
Participation (Riverside County Public
Facility) Series 1985A DN (National
Westminister LOC) (A-1+, VMIG-1)**
2.10%..................... 02/07/99 $6,700 $6,700,000
Riverside County Certificates of
Participation (Riverside County Public
Facility) Series 1985C DN (National
Westminister LOC) (A-1+, VMIG-1)**
2.35%..................... 02/07/99 7,700 7,700,000
Rohnert Park Multifamily Housing Bonds
(Crossbrook Apartments) Series A DN
(Federal National Mortgage Association)
(A-1+)**
2.40%..................... 02/07/99 2,500 2,500,000
San Bernadino County Certificates of
Participation (Medical Center Financing
Project) Series 1998 DN (Landesbank
Hessen-Thuringen LOC)
(A-1+, VMIG-1)**
2.35%..................... 02/07/99 10,000 10,000,000
San Diego Area Local Government Trust
Receipts Certificates of Participation
Series A DN (A-1+)**
2.75%..................... 02/07/99 15,000 15,000,000
San Diego County Regional Transportation
Commission TECP (Morgan Guaranty LOC)
(A-1+, P-1)
2.85%..................... 02/10/99 4,900 4,900,000
San Diego County Water Authority Series A
TECP (Bayerische Landesbank Girozentrale
LOC)
(A-1, P-1)
2.70%..................... 02/04/99 6,600 6,600,000
2.70%..................... 02/05/99 6,500 6,500,000
San Diego Multifamily Housing RB
(University Tour Center Apartments
Project) DN (Bank of America LOC) (A-1,
VMIG-1)**
2.35%..................... 02/07/99 4,000 4,000,000
San Diego Multifamily Housing RB Series A
DN (Fifth Third Bank LOC) (A-1+)**
2.20%.......................02/07/99 4,100 4,100,000
San Francisco City & County Housing
Authority Multifamily Housing RB
(Winterland Project) Series 1985C DN
(Citibank LOC) (A-1, VMIG-1)**
2.40%..................... 02/07/99 4,800 4,800,000
San Francisco City & County Redevelopment
Agency Multifamily Housing RB (South
Harbor Project) DN (VMIG-1)**
2.50%..................... 02/07/99 12,300 12,300,000
</TABLE>
5
<PAGE>
California Money Fund
Statement of Net Assets (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Maturity Par
Investments in Securities Date (000) Value
- ------------------------- -------- ------- -----------
<S> <C> <C> <C>
CALIFORNIA (Continued)
San Jose Multifamily Housing Bonds (Fairway Glen Project)
Series A DN (FGIC Insurance) (VMIG-1)**
2.30%....................................... 02/07/99 $ 4,980 $ 4,980,000
San Jose Multifamily Housing Bonds (Timberwood Apartments
Project) Series 1995A DN (Wells Fargo Bank LOC) (VMIG-1)**
2.35%....................................... 02/07/99 4,065 4,065,000
San Juan-Modesto-Santa Clara-Redding Public Power Agency (San
Juan Project) Subordinate Lien RB Series 1995B DN (AMBAC
Insurance)
(A-1+, VMIG-1)**
2.25%....................................... 02/07/99 11,000 11,000,000
San Juan-Modesto-Santa Clara-Redding Public Power Agency (San
Juan Project) Subordinate Lien RB Series 1997D DN (National
Westminster LOC) (A-1+, VMIG-1)**
2.30%....................................... 02/07/99 6,000 6,000,000
San Juan-Modesto-Santa Clara-Redding Public Power Agency (San
Juan Project) Subordinate Lien RB Series 1997E DN (National
Westminster LOC) (A-1+, VMIG-1)**
2.25%....................................... 02/07/99 1,200 1,200,000
Santa Clara Electric RB Series A DN (National Westminister
LOC) (VMIG-1)**
2.30%....................................... 02/07/99 1,040 1,040,000
Santa Clara Financing Authority Lease Revenue Refunding Bonds
(VMC Facilities Replacement Project) Series B DN (Union Bank
of Switzerland LOC) (A-1, VMIG-1)**
2.30%....................................... 02/07/99 6,500 6,500,000
Santa Clara Multifamily Housing Bonds (Fox Chase Project) DN
(FGIC Insurance) (VMIG-1)**
2.30%....................................... 02/07/99 4,700 4,700,000
Solano County TRAN Series B (Teeter Plan Notes) (MIG-1)
3.50%....................................... 12/15/99 5,000 5,023,189
Southern California Public Power Authority Subordinated
Refunding RB (Palo Verde Project) Series 1996C DN (AMBAC
Insurance)
(A-1, VMIG-1)**
2.20%....................................... 02/07/99 5,000 5,000,000
Southern California Public Power Authority Subordinated
Refunding RB (Southern Transmission Project) Series B DN (FSA
Insurance)
(A-1+, VMIG-1)**
2.25%....................................... 02/07/99 $20,900 $20,900,000
Southern California Public Power Authority Subordinated
Refunding RB (Southern Transmission Project) Series 1991 DN
(FGIC Insurance)
(A-1+, VMIG-1)**
2.20%....................................... 02/07/99 10,600 10,600,000
Union City Multifamily Housing Bonds (Skylark Apartments
Project) Series B DN (Bank of America LOC) (A-1+)**
2.30%....................................... 02/07/99 9,590 9,590,000
Vallecitos Water District Certificates of Participation (Twin
Oaks Reservoir Project) DN (Credit Locale de France LOC) (A-
1+, VMIG-1)**
2.30%....................................... 02/07/99 2,700 2,700,000
Watereuse Finance Authority RB Series 1998 DN (FSA Insurance)
(A-1+)**
2.70%....................................... 02/07/99 12,800 12,800,000
-----------
660,216,590
-----------
GUAM--0.8%
Guam Power Authority TECP (Kredietbank LOC) (A-1+, P-1)
2.60%....................................... 02/19/99 5,700 5,700,000
-----------
PUERTO RICO--3.0%
Puerto Rico Highway & Transportation Authority RB Series 1998A
DN (AMBAC Insurance)
(A-1+, VMIG-1)**
2.35%....................................... 02/07/99 6,000 6,000,000
Puerto Rico Industrial Medical Higher Education &
Environmental Pollution Control Facilities Authority (Ana G.
Mendez Education Foundation Project) DN (Bank of Tokyo LOC)
(A-1+)**
2.70%....................................... 02/07/99 2,200 2,200,000
Puerto Rico Industrial, Tourist, Education, Medical &
Environmental Control Financing Authority (Ana G. Mendez
University System Project) DN (Banco de Santander LOC) (A-
1+)**
2.20%....................................... 02/07/99 9,200 9,200,000
</TABLE>
6
<PAGE>
California Money Fund
Statement of Net Assets (Concluded)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Maturity Par
Investments in Securities Date (000) Value
- ------------------------- -------- ------ ----------
<S> <C> <C> <C>
PUERTO RICO (Continued)
Puerto Rico TRAN
3.50%......................................... 07/30/99 $3,000 $3,009,437
----------
20,409,437
----------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL
INVESTMENTS
IN
SECURITIES
(Cost
$686,326,027*). 99.6% 686,326,027
OTHER ASSETS
IN EXCESS OF
LIABILITIES. 0.4 2,444,900
----- ------------
NET ASSETS
(Equivalent
to $1.00 per
share based
on
549,302,731
California
Money Shares
and
139,603,735
California
Dollar
Shares
outstanding). 100.0% $688,770,927
===== ============
</TABLE>
<TABLE>
<S> <C>
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE ($688,770,927 /
688,906,466)............................................................ $1.00
=====
</TABLE>
- --------
* Aggregate cost for federal income tax purposes is substantially the same.
** Variable rate demand note--the interest rate shown is as of January 31,
1999, and the maturity date shown is the longer of (i) the next interest
readjustment date or (ii) the date on which the principal amount owned can
be recovered through demand.
The Moody's Investor's Service, Inc. and Standard & Poor's Ratings Group
ratings indicated are believed to be the most recent ratings available at
January 31, 1999. The ratings have not been verified by the Independent
Accountants and, therefore, are not covered by the Report of the Independent
Accountants.
CALIFORNIA MONEY FUND
SUPPLEMENTARY INFORMATION
Maturity Schedule of Portfolio
January 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
Maturity Par Percentage
-------- ------------ ----------
<S> <C> <C>
1-30 Days $611,505,000 89.1%
31-60 Days 10,000,000 1.5%
121-150 Days 47,600,000 6.9%
Over 150 Days 17,000,000 2.5%
</TABLE>
Average Weighted Maturity--22 days
Investment Abbreviations:
DNDemand Note (Variable Rate)
GOGeneral Obligation
IDRBIndustrial Development Revenue Bond
LOCLetter of Credit
PCRBPollution Control Revenue Bond
RANRevenue Anticipation Note
RBRevenue Bond
TECPTax-Exempt Commercial Paper
TRANTax and Revenue Anticipation Note
7
<PAGE>
California Money Fund
Municipal Fund for California Investors, Inc.
Statement of Operations
Year Ended January 31, 1999
<TABLE>
<S> <C>
Investment income:
Interest......................................................... $21,674,535
-----------
Expenses:
Investment advisory fee.......................................... 1,344,717
Administration fee............................................... 1,344,717
Custodian fees................................................... 138,600
Legal fees....................................................... 54,392
Transfer agent fees.............................................. 44,302
Audit fees....................................................... 31,998
Trustees' fees and expenses...................................... 35,820
Registration and filing fees..................................... 3,855
Printing......................................................... 11,002
Other............................................................ 13,807
-----------
3,023,210
Service Organization fees: Dollar Shares......................... 302,866
-----------
3,326,076
Fees waived by Investment Adviser and Administrators............. (1,678,495)
-----------
Total expenses................................................. 1,647,581
-----------
Net investment income............................................ 20,026,954
Realized gain (loss) on investments:
Net realized gain on investments sold............................ 13,414
-----------
Net increase in net assets resulting from operations............. $20,040,368
===========
</TABLE>
See accompanying notes to financial statements.
8
<PAGE>
California Money Fund
Municipal Fund for California Investors, Inc.
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Year Ended Year Ended
January 31, 1999 January 31, 1998
---------------- ----------------
<S> <C> <C>
Net investment income........................ $ 20,026,954 $ 18,095,184
Net realized gain (loss) on investments...... 13,414 (14,860)
------------ ------------
Net increase in net assets resulting from
operations.................................. 20,040,368 18,080,324
------------ ------------
Distributions to shareholders from:
Net investment income:
Money Shares............................. (16,653,422) (14,302,548)
Dollar Shares............................ (3,373,532) (3,792,636)
------------ ------------
Total distributions.......................... (20,026,954) (18,095,184)
------------ ------------
Increase in net assets from capital share
transactions................................ 97,871,065 138,059,151
------------ ------------
Net increase in net assets................... 97,884,479 138,044,291
Net assets:
Beginning of period........................ 590,886,448 452,842,157
------------ ------------
End of period.............................. $688,770,927 $590,886,448
============ ============
</TABLE>
See accompanying notes to financial statements.
9
<PAGE>
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
01/31/99 01/31/98 01/31/97 01/31/96 01/31/95
-------- -------- -------- -------- --------
<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........... 0.0305 0.0334 0.0316 0.0356 0.0281
------- ------- ------- ------- -------
Less Distributions:
Dividends to Shareholders From
Net Investment Income.......... (0.0305) (0.0334) (0.0316) (0.0356) (0.0281)
------- ------- ------- ------- -------
Net Asset Value, End of Period.... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= =======
Total Return...................... 3.09% 3.39% 3.21% 3.62% 2.84%
Ratios/Supplemental Data:
Net Assets, End of Period $(000).. 549,170 460,339 326,521 389,883 385,824
Ratio of Expenses to Average Daily
Net Assets/1.................../. .20% .20% .20% .20% .20%
Ratio of Net Investment Income to
Average Daily Net Assets......... 3.02% 3.34% 3.15% 3.55% 2.79%
</TABLE>
- --------
/1/Operating expense ratios before waivers of Investment Adviser and
Administrators fees for Money Shares for the years ended January 31, 1999,
1998, 1997, 1996 and 1995 were .45%, .46%, .48%, .48% and .48%, respectively.
See accompanying notes to financial statements.
10
<PAGE>
California Money Fund
Municipal Fund for California Investors, Inc.
Financial Highlights
(For a Share Outstanding Throughout Each Period)
<TABLE>
<CAPTION>
Dollar Shares
------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
01/31/99 01/31/98 01/31/97 01/31/96 01/31/95
-------- -------- -------- -------- --------
<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........... 0.0280 0.0309 0.0291 0.0331 0.0256
------- ------- ------- ------- -------
Less Distributions:
Dividends to Shareholders From
Net Investment Income.......... (0.0280) (0.0309) (0.0291) (0.0331) (0.0256)
------- ------- ------- ------- -------
Net Asset Value, End of Period.... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= =======
Total Return...................... 2.84% 3.14% 2.96% 3.37% 2.59%
Ratios/Supplemental Data:
Net Assets, End of Period $(000).. 139,601 130,547 126,321 31,163 11,026
Ratio of Expenses to Average Daily
Net Assets/1.................../. .45% .45% .45% .45% .45%
Net Investment Income to Average
Daily Net Assets................. 2.77% 3.09% 2.90% 3.30% 2.54%
</TABLE>
- --------
/1/Operating expense ratios before waivers of Investment Adviser and
Administrators fees for Dollar Shares for the years ended January 31, 1999,
1998, 1997, 1996 and 1995 were .70%, .71%, .73%, .73% and .73%,
respectively.
See accompanying notes to financial statements.
11
<PAGE>
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 offers three series of
shares: California Money ("Money"), California Money Dollar ("Dollar"), and
California Money Plus ("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 bear the service fees described below
and are entitled to vote separately on matters relating to these fees.
Dollar Shares are sold pursuant to a non-12b-1 shareholder services plan to
institutions other than broker/dealers, and Plus Shares are sold pursuant to a
12b-1 services plan only to broker/dealers which enter into agreements with
the Company requiring them to provide certain support services to their
customers in consideration of the Company'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 may be requested to provide assistance in connection with the
distribution of such shares. Money Shares are sold to institutional investors
who choose not to enter into such servicing agreements with the company.
Certain California municipal obligations in the Company's portfolio 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 statement 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: 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.
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 the Company
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 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 BlackRock
Institutional Management Corporation ("BIMC"), a majority-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
12
<PAGE>
Notes to Financial Statements (Continued)
Company, computed daily and payable monthly, at an annual rate of .20% of
Company'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 the Company's average daily net
assets.
BIMC and the Administrators have agreed to reduce the advisory and
administration fees otherwise payable to them and to reimburse the Company for
its operating expenses to the extent necessary to ensure that its annual
operating expense ratio (excluding fees paid to Service Organizations pursuant
to Servicing Agreements) does not exceed .20% of the Company's average daily
net assets.
For the year ended January 31, 1999, BIMC and the Administrators voluntarily
waived fees, on an equal basis, totaling $1,678,495.
PFPC Trust is the Company's custodian and PFPC is the transfer agent.
No Service Organization fees were paid to affiliates for the year ended
January 31, 1999.
4. Fund Shares
Since the Company 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
--------------------------------
Year Ended Year Ended
January 31, January 31,
1999 1998
--------------- ---------------
<S> <C> <C>
Sold
Money Shares................................. $ 4,163,985,529 $ 2,337,571,092
Dollar Shares................................ 330,262,605 559,243,481
Issued as reinvestments of dividends
Money Shares................................. 703,561 1,014,667
Dollar Shares................................ -- --
Redeemed
Money Shares................................. (4,075,870,211) (2,204,755,948)
Dollar Shares................................ (321,210,419) (555,014,141)
--------------- ---------------
Net increase.................................. $ 97,871,065 $ 138,059,151
=============== ===============
</TABLE>
The authorized capital of the Company consists of 2.3 billion Money Shares,
300 million Dollar Shares, and 300 million Plus Shares, each with a par value
of $.001 per share.
On January 31, 1999, three shareholders held approximately 56% of the
outstanding shares of the California Money Fund.
5. Capital Loss Carryover
At January 31, 1999, California Money Fund had a capital loss carryover
amounting to $135,539 expiring at various times from 2001 to 2006, and is
available to offset possible future capital gains.
6. Net assets
At January 31, 1999, net assets consisted of the following:
<TABLE>
<S> <C>
Paid-in capital................................................... $688,906,466
Accumulated net realized loss on investments...................... (135,539)
------------
Total Net Assets.................................................. $688,770,927
============
</TABLE>
13
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Board of Directors of
Municipal Fund for California Investors, Inc.:
In our opinion, the accompanying statement of net assets of the Municipal
Fund for California Investors, Inc. (the "Fund") and the related statements of
operations, changes in net assets and financial highlights present fairly, in
all material respects, the financial position of the Municipal Fund for
California Investors, Inc., at January 31, 1999, and the results of its
operations, changes in its net assets for each of the two years in the period
then ended and its financial highlights for each of the five years in the
period then ended, in conformity with generally accepted accounting
principles. These financial statements and financial highlights (hereafter
referred to as "financial statements") are the responsibility of the Fund's
management; our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these financial
statements in accordance with generally accepted auditing standards which
require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at January 31, 1999 by correspondence with the
custodian and brokers, provide a reasonable basis for the opinion expressed
above.
PricewaterhouseCoopers LLP
2400 Eleven Penn Center
Philadelphia, Pennsylvania
February 22, 1999
14
<PAGE>
Trustees
Rodney D. Johnson
Chairman
G. Nicholas Beckwith
Jerrold B. Harris
Joseph Platt
Robert C. Robb. Jr.
Kenneth L. Urish
Fredrick W. Winter
Investment Adviser
BlackRock 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 of 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.
CALIFORNIA MONEY FUND
AN INVESTMENT PORTFOLIO OFFERED BY PROVIDENT INSTITUTIONAL FUNDS
PROVIDENT INSTITUTIONAL FUNDS
ANNUAL REPORT
JANUARY 31, 1999
