The California Muni Fund
Dear Fellow Shareholder:
The first half of 1997 was a difficult period for fixed income investors
generally, but it was rewarding for investors in the California Muni Fund. The
Fund's total return for the period was 4.75%, and the Fund's 7.2% total return
for the quarter ending June 30, 1997 was highest for all single state bond funds
according to Morningstar.
The year began on a sour note as strength in the economy triggered a new
round of inflation jitters. Even the Federal Reserve was affected by inflation
fears because in late March the Federal Open Market Committee decided that
tighter credit was necessary. The Federal Reserve hiked interest rates modestly,
while making it clear that additional increases would be forthcoming unless
demand conditions in the economy eased. We have fought this view continuously in
recent years, arguing that inflation would remain calm even in the face of
steady economic growth.
By late April it seems that market psychology may have finally begun
shifting toward a benign view of inflation. Economic growth is continuing
unabated, and with signs of inflation still totally absent, the fixed income
investment arena has begun to improve.
While generally improving economic conditions for the country as a whole and
for California particularly have alleviated many credit concerns, there is still
some unease over the strength of some California credits. The passage of
Proposition 218 and the hangover effect of the Orange County bankruptcy filing
in 1994 have created a relatively negative tone in the California municipal bond
market. California Muni Fund currently has 77.5% of its portfolio in the three
highest credit quality grades, while the remainder is in lesser quality issues.
These issues would be sensitive to adverse credit events, as well as to changes
in the general level of interest rates. However, the yields on these issues is
very attractive, and the prospect of capital appreciation would be enhanced with
any easing of credit tensions.
The Fund also holds a large quantity of zero coupon and other long duration
California bonds. We consider these to be very cheap as these securities yield
considerably more relative to bonds with lesser durations, as compared to the
spread between zeros and other bonds from most other states. As conditions in
the California economy continue to improve, which is our expectation, these
spreads should narrow in favor of California state issues.
Looking ahead then we expect continuing moderate economic growth and low
inflation, and thus a generally positive environment for the fixed income
market. The California economy should outperform the rest of the economy because
of its concentration of fast growing high technology companies, and this should
continue to bolster its credit worthiness. We are looking forward to the
upcoming merger with the Tocqueville Fund Family, and we thank you for your
continued trust.
Sincerely,
Dr. Vincent J. Malanga
President
1
<PAGE>
The California Muni Fund
Portfolio Composition
June 30, 1997
(CHART MATERIAL)
(4.1%) INLT
(53.7%) FCLT
(12.0%) NR
(39.6%) LRIB
(1.4%) BB
(9.1%) BBB
(2.1%) A
(2.2%) AA
(2.6%) FCSI
(73.2%) AAA
FIXED COUPON BONDS
FCLT -- Long (maturity [less than] 15 years) (includes long zero coupons)
FCSI -- Short or Intermediate (maturity [more than] 15 years) (includes
zero coupon bonds)
VARIABLE RATE BONDS
RIB (Residual Interest Bond) type inverse floater's. These are leveraged bonds
whose coupon varies inversely with rates on short term companion issues. The
inverse floater's price will be more volatile than that of a fixed coupon bond.
LRIB -- Long Term (maturity [less than] 15 years)
SRIB -- Short or Intermediate Term ([more than] 15 year maturity)
IN(Index) based inverse floater's are bonds whose interest coupons vary
inversely with an index of short term interest rates and then revert to a fixed
rate mode. The inverse floater's price will be more volatile than that of a
fixed coupon bond.
INLT -- Long Term (maturity [less than] 15 years)
INSI -- Short or Intermediate Term (maturity [more than] 15 years)
+If a security has a split rating, the highest applicable rating is used,
including published ratings on identical credits for individual securities not
individually rated.
2
<PAGE>
THE CALIFORNIA MUNI FUND
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS
Investment in securities at value (cost $12,339,277) ................................ $12,502,584
Receivables
Interest .......................................................................... 245,721
Capital shares sold ............................................................... 410,501
----------
Total assets ............................................................ 13,158,806
----------
LIABILITIES
Payables
Bank overdraft payable ............................................................ 1,643,027
Notes payable ..................................................................... 2,000,000
Dividends ......................................................................... 13,463
Capital shares redeemed ........................................................... 408,003
Accrued expenses .................................................................... 126,864
----------
Total liabilities ....................................................... 4,191,357
----------
NET ASSETS consisting of:
Accumulated net realized loss ....................................................... $ (281,962)
Unrealized appreciation of securities ............................................... 163,307
Paid-in-capital applicable to 1,127,354 shares of beneficial interest (Note 4) ...... 9,086,104
---------- -----------
$ 8,967,449
===========
NET ASSET VALUE PER SHARE ............................................................. $7.95
=====
</TABLE>
See Notes to Financial Statements.
3
<PAGE>
THE CALIFORNIA MUNI FUND
STATEMENT OF OPERATIONS
Six Months Ended June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
INVESTMENT INCOME
Interest income .......................................... $524,654
EXPENSES (Notes 2 and 3)
Management fee ........................................... $30,892
Custodian and accounting fees ............................ 21,668
Transfer agent fees ...................................... 10,706
Professional fees ........................................ 72,344
Printing and postage ..................................... 4,552
Interest ................................................. 31,421
Distribution expenses .................................... 18,391
Shareholder communication ................................ 11,700
Trustees' fees ........................................... 392
Miscellaneous ............................................ 8,592
-------
Total expenses ................................ 210,658
--------
Net investment income ......................... 313,996
--------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized loss on investments ......................... (9,444)
Unrealized appreciation of
investments for the year ............................... 271,678
--------
Net gain on investments ....................... 262,234
--------
NET INCREASE IN NET ASSETS FROM OPERATIONS ................. $576,230
========
See Notes to Financial Statements.
4
<PAGE>
THE CALIFORNIA MUNI FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended
June 30, Year Ended
1997 December 31,
(Unaudited) 1996
----------- ------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS
Net investment income .................................................... $ 313,996 $ 694,929
Net realized gain (loss) on investments .................................. (9,444) 100,733
Unrealized appreciation (depreciation) of investments for the period ..... 271,678 (876,013)
----------- -----------
Net increase (decrease) in net assets from operations ................ 576,230 (80,351)
DIVIDENDS PAID TO SHAREHOLDERS FROM
Net investment income .................................................... (313,996) (694,929)
CAPITAL SHARE TRANSACTIONS (Note 4) ........................................ (7,546,364) 4,404,527
----------- -----------
Total increase (decrease) ........................................ (7,284,130) 3,629,247
NET ASSETS:
Beginning of period ...................................................... 16,251,579 12,622,332
----------- -----------
End of period ............................................................$ 8,967,449 $16,251,579
=========== ===========
</TABLE>
See Notes to Financial Statements.
5
<PAGE>
THE CALIFORNIA MUNI FUND
STATEMENT OF INVESTMENTS
June 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Issue(degree)(degree)(degree) Type Rating Value
------ ----- ---- ------ -----
(degree) (degree)
(degree)
<S> <C> <C> <C> <C>
$ 100,000(DD) Arvin, Development Corporation, COP, RB, 8.75, 9/1/18 .............. FCLT NR $ 24,505
8,980,000 Bakersfield, COP, ETM, CAB, 4/15/21 ................................ FCLT AAA 2,396,582
200,000 Beverly Hills, PFA, RB, IFRN*, MBIA Insured, 7.32, 6/1/15 .......... LRIB AAA 200,162
100,000 CSAC Finance Corp, COP, Sutter County Health Facilities Project,
7.80, 1/1/21 ..................................................... FCLT BBB 101,933
75,000 California, HFA, Home Mortgage, RB, Series A, MBIA Insured,
5.70, 8/1/10 ..................................................... FCSI AAA 76,603
400,000 California Statewide Communities Development Authority, Cedars
Sinai Medical Project, COP, RB, 5.40, 11/1/15 .................... FCLT NR 370,144
300,000 California Statewide Communities Development Authority, Cedars
Sinai Medical Project, COP, RB, IFRN*, 6.76, 11/1/15 ............. LRIB A 253,020
300,000 East Bay, Wastewater System Project, RB, Refunding, AMBAC
Insured, IFRN*, 7.17, 6/1/20 ..................................... LRIB AAA 277,878
220,000 Hawthorne, CRA, TAR, 6.75, 9/1/24 .................................. FCLT BAA 234,518
170,000 Lake Elsinore, USD, Refunding, COP, 6.90, 2/1/20 ................... FCLT BBB 181,013
15,000 Los Angeles, Home Mortgage, RB, 9.00, 6/15/18 ...................... FCLT A 15,452
300,000 Los Angeles, Multple Capital Facilities Project III, COP, 6.60,
11/1/11 .......................................................... FCLT BBB 306,177
1,420,713 Los Angeles, HFA, MFH Project C, CAB, RB, 12.00, 12/1/29 ........... FCLT NR 1,065,307
35,000 Modesto,Valley Oak Project, RB, 10.60, 5/1/09 ...................... FCSI NR 35,778
250,000 Northern California Power Agency, Multple Capital Facilities, RB,
MBIA Insured, IFRN*, 8.83, 8/1/25 ................................ LRIB AAA 284,012
250,000 Northern California Transmission Agency, CA-ORE Transmission
Project, RB, MBIA Insured, IFRN*, 6.60, 4/29/24 .................. LRIB AAA 229,380
500,000 Orange County Airport, RB, Refunding, MBIA Insured, 5.62, 7/1/12 ... FCLT AAA 506,095
250,000 Orange County, LTA, RB, IFRN*, 7.55, 2/14/11 ....................... LRIB AA 276,055
250,000 Orange County, LTA, RB, IFRN*, 7.99, 2/14/11 ....................... LRIB AAA 271,557
200,000 Panoche, Water District, COP, 7.50, 12/1/08 ........................ FCSI BBB 215,714
250,000 Rancho, Water District Financing Authority, RB, Prerefunded @
104, AMBAC Insured, IFRN*, 8.78, 8/17/21 ......................... LRIB AAA 297,120
250,000 Redding, Electric System, COP, Series A, FGIC Insured, IFRN*,
7.09, 6/1/19 ..................................................... LRIB AAA 256,653
565,000 Rio, USD,COP, FSA Insured, Convertible, CAB, 9/1/03, STEP** ........ FCLT AAA 402,625
175,000 Riverside, HFA, Riverside Apartment Project, RB, 7.87, 11/1/19 ..... FCLT BB 171,729
2,000,000 Salinas, Redevelopment Agency, TAB, CGIC Insured, Central City
Project, CAB, 11/1/22 ............................................ FCLT AAA 487,480
500,000 San Bernardino, COP, Series B, MBIA Insured, IFRN*, 6.62, 7/1/16 ... INLT AAA 506,630
900,000 San Bernardino, COP, Series PA38, MBIA Insured, IFRN*, 9.97,
7/1/16 Rule 144A Security (restricted as to resale except to
qualified institutions) ......................................... LRIB AAA 889,047
200,000 San Diego Water Authority, COP, FGIC Insured, IFRN*, 7.28,
4/22/09 .......................................................... LRIB AAA 220,846
</TABLE>
6
<PAGE>
THE CALIFORNIA MUNI FUND
STATEMENT OF INVESTMENTS (continued)
June 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Issue(degree)(degree)(degree) Type Rating Value
------ ----- ---- ------ -----
(degree) (degree)
(degree)
<S> <C> <C> <C> <C>
1,440,000 San Jose, CRA, TAB, MBIA Insured, IFRN*, 7.17, 8/1/16 Rule
144A Security (restricted as to resale except to qualified
institutions) .................................................... LRIB AAA 1,262,088
250,000 Southern California Public Power Authority, FGIC Insured, IFRN*,
6.72, 7/1/17 ..................................................... LRIB AAA 232,805
55,000 Tri City, HFA, FNMA/GNMA Collateraiized, AMT, 6.45, 12/1/28 ........ FCLT AAA 57,351
30,000 Tri City, HFA, FNMA/GNMA Collateralized, AMT, Series B, 6.30,
12/1/28 .......................................................... FCLT AAA 31,137
250,000 Tri City, HFA, FNMA/GNMA Collateralized, AMT, Series E, 6.40,
12/1/28 .......................................................... FCLT AAA 260,210
100,000 Upland, HFA, RB, 7.85, 7/1/20 ...................................... FCLT BBB 104,978
-----------
Total Investments (Cost $12,339,277++) .................... $12,502,584
===========
</TABLE>
*Inverse Floating Rate Notes (IFRN) are instruments whose interest rates
bear an inverse relationship to the interest rate on another security or
the value of an index. (see Note 5). Rates shown are as of June 30, 1997.
++Cost is the same for Federal income tax purposes.
**Step Bonds (STEP) are instruments whose interest rate is fixed at an initial
rate and then increases ("Step Up") to another fixed rate until maturity.
(DD)Denotes non-income producing security. Security in default.
Legend
(left column)
(degree)Type FCLT -Fixed Coupon Long Term
FCSI -Fixed Coupon Short or Intermediate Term
LRIB -Residual Interest Bond Long Term
INLT -Indexed Inverse Floating Rate Bond Long Term
(degree)
(degree)Ratings If a security has a split rating the highest applicable
rating is used, including published ratings on identicial
credits for individual securities not individually rated.
Ratings are unaudited.
NR -Not Rated
(degree)
(degree)
(degree)Issue AMBAC American Municipal Bond Assurance Corporation
AMT Alternative Minimum Tax
CAB Capital Appreciation Bond
CGIC Capital Guaranty Insurance Company
(right column)
COP Certificate of Participation
CRA California Redevelopment Agency
FGIC Financial Guaranty Insurance Corporation
FNMA Federal National Mortgage Association
FSA Financial Security Assurance, Inc.
GNMA Government National Mortgage Association
HFA Housing Finance Authority
LTA Local Transportation Authority
MBIA Municipal Bond Insurance Assurance Corporation
MFH Multi Family Housing
PFA Public Financing Authority
RB Revenue Bond
TAB Tax Allocation Bond
TAR Tax Allocation Refunding
USD Unified School District
See Notes to Financial Statements.
7
<PAGE>
THE CALIFORNIA MUNI FUND
NOTES TO FINANCIAL STATEMENTS
June 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
(left column)
1. Significant Accounting Policies
The California Muni Fund (the Fund) was organized as a Massachusetts
business trust and is registered as an open end management investment company
under the Investment Company Act of 1940. The Fund's objective is to provide as
high a level of income that is excluded from gross income for Federal income tax
purposes and exempt from California personal income tax as is consistent with
the preservation of capital. The following is a summary of significant
accounting policies followed in the preparation of its financial statements:
Valuation of Securities-The Fund's portfolio securities are valued on the
basis of prices provided by an independent pricing service when, in the opinion
of persons designated by the Fund's trustees, such prices are believed to
reflect the fair market value of such securities. Prices of non-exchange traded
portfolio securities provided by independent pricing services are generally
determined without regard to bid or last sale prices but take into account
institutional size trading in similar groups of securities, yield, quality,
coupon rate, maturity, type of issue, trading characteristics and other market
data. Securities traded or dealt in upon a securities exchange and not subject
to restrictions against resale as well as options and futures contracts listed
for trading on a securities exchange or board of trade are valued at the last
quoted sales price, or, in the absence of a sale, at the mean of the last bid
and asked prices. Options not listed for trading on a securities exchange or
board of trade for which over-the-counter market quotations are readily
available are valued at the mean of the current bid and asked prices. Money
market and short-term debt instruments with a remaining maturity of 60 days or
less will be valued on an amortized cost basis. Securities not priced in a
manner described above and other assets are valued by persons designated by the
Fund's trustees using methods which the trustees believe accurately reflects
fair value.
Federal Income Taxes-It is the Fund's policy to comply with the requirements
of the Internal Revenue Code applicable to "regulated investment companies" and
to distribute all of its taxable and tax exempt income to its shareholders.
Therefore, no provision for federal income tax is required.
(right column)
Distributions-The Fund declares dividends daily from its net investment
income and pays such dividends on the last business day of each month.
Distributions of net capital gains, if any, realized on sales of investments are
made annually, as declared by the Fund's Board of Trustees. Dividends are
reinvested at the net asset value unless shareholders request payment in cash.
General-Securities transactions are accounted for on a trade date basis.
Interest income is accrued as earned. Premiums and original issue discount on
securities purchased are amortized over the life of the respective securities.
Realized gains and losses from the sale of securities are recorded on an
identified cost basis.
Accounting Estimates-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 and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of increases and decreases in
net assets from operations during the reporting period. Actual results could
differ from those estimates.
2. Investment Advisory Fees and Other Transactions With Affiliates
Under a Management Agreement, the Fund pays an investment management fee to
Fundamental Portfolio Advisors, Inc. (the Manager) equal to 0.5% of the Fund's
average daily net asset value up to $100 million and decreasing by .02% of each
$100 million increase in net assets down to 0.4% of net assets in excess of $500
million.
The Manager has cooperated in an investigation conducted by the Securities
and Exchange Commission concerning an affiliated fund. The Commission's staff
indicated that the Commission has authorized the commencement of certain
proceedings against the Manager, the Distributor and two individuals associated
with the Manager. All parties intend to vigorously contest any charges.
Pursuant to a Distribution Plan (the Plan) adopted pursuant to Rule12b-1,
promulgated under the Investment Company Act of 1940, the Fund may pay certain
promotional and advertising expenses and may compensate certain registered
securities dealers and financial institutions for services provided in
connection with the processing of orders for purchase or redemption of the
Fund's shares and furnishing
8
<PAGE>
THE CALIFORNIA MUNI FUND
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
(left column)
other shareholder services. Payments by the Fund shall not in the aggregate, in
any fiscal year, exceed 0.5% of the average daily net assets of the Fund.
Under a Distribution Agreement with Fundamental Service Corporation (FSC),
an affiliate of the Manager, amounts are paid under the Plan to compensate FSC
for the services it provides and the expenses it bears in distributing the
Fund's shares to investors. Fees for those services aggregated approximately
$9,600 for the six months ended June 30, 1997.
The Fund compensates Fundamental Shareholder Services, Inc., an affiliate of
the Manager, for the services it provides under a Transfer Agent and Service
Agreement. Transfer agent fees for the six months ended June 30, 1997 are set
forth in the statement of operations.
3. Trustees' Fees
All of the Trustees of the Fund are also directors or trustees of two other
affiliated mutual funds for which the Manager acts as investment adviser. For
services and attendance at board meetings and meetings of committees which are
common to each Fund, each Trustee who is not affiliated with the Manager is
compensated at the rate of $6,500 per quarter pro rated among the funds based on
their respective average net assets. 4. Shares of Beneficial Interest
As of June 30, 1997 there were an unlimited number of shares of beneficial
interest (no par value) authorized and capital paid in amounted to $9,086,104.
Transactions in shares were as follows:
Six months Ended Year Ended
June 30, 1997 December 31, 1996
------------- -----------------
Shares Amount Shares Amount
------ ------ ------ ------
Shares sold ...... 17,560,874 $134,337,776 29,177,580 $234,552,576
Shares issued
on reinvest-
ment of
dividends ...... 32,524 250,960 58,802 472,727
Shares
redeemed ....... (18,552,738) (142,135,100) (28,566,533) (230,620,776)
----------- ------------ ----------- ------------
Net increase
(decrease) ..... (959,340) ($7,546,364) 669,849 $ 4,404,527
=========== ============ =========== ============
(right column)
5. Complex Securities and Investment
Transactions
Inverse Floating Rate Notes:
The Fund invests in variable rate securities commonly called "inverse
floaters". The interest rates on these securities have an inverse relationship
to the interest rate of other securities or the value of an index. Changes in
interest rate on the other security or index inversely affect the rate paid on
the inverse floater, and the inverse floater's price will be more volatile than
that of a fixed rate bond. Certain interest rate movements and other market
factors can substantially affect the liquidity of IFRN's.
Investment Transactions:
During the six months ended June 30, 1997, the cost of purchases and
proceeds from sales of investment securities, other than short-term obligations,
were $80,394 and $893,805 respectively.
As of June 30, 1997 the net unrealized appreciation of portfolio securities
amounted to $163,307 composed of unrealized appreciation of $811,602 and
unrealized depreciation of $648,295. The Fund has a capital loss carryforward of
$281,944 expiring December 31, 2002 available to offset future capital gains.
6. Line of Credit
The Fund has a line of credit agreement with its custodian bank
collateralized by portfolio securities. Borrowings under this agreement bear
interest linked to the bank's prime rate. The maximum month end and the average
borrowings outstanding during the six months ended June 30, 1997, were
$2,000,000 and $806,000, respectively.
7. Subsequent Transfer
On July 16, 1997 each of Fundamental's mutual funds (consisting of: The New
York Muni Fund, The California Muni Fund, Fundamental Fixed Income Fund: Tax
Free Money Market Series, High Yield Municipal Bond Series, and Fundamental U.S.
Government Strategic Income Fund) have adopted, subject to shareholder approval,
an Agreement and Plan of Reorganization (the "Plan") under which each fund (the
"Fundamental Fund") will transfer all of its assets and liabilities to a
newly-created corresponding series of The Trust (the "Tocqueville Fund") in
exchange for shares of the Tocqueville Fund. Shareholders of each Fundamental
Fund will receive shares of the corresponding Tocqueville Fund
9
<PAGE>
THE CALIFORNIA MUNI FUND
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 1997 (unaudited)
- --------------------------------------------------------------------------------
(left column)
equal in value to their shares in the Fundamental Funds. Shareholders will not
have to pay a sales load upon receiving shares of the Tocqueville Fund.
The corresponding Tocqueville Fund will have investment objectives, policies
and restrictions substantially identical to those of the Fundamental Fund. The
Board of Trustees of the Tocqueville Funds is comprised of individuals other
than those who currently serve as Directors (Trustees) of the Fundamental Funds.
Tocqueville Asset Management L.P. is the investment adviser to the Tocqueville
Funds.
(right column)
Fundamental's Board Members determined that the Plan would be in the best
interests of shareholders of the Fundamental Funds and recommended that
shareholders of each of the Fundamental Funds approve the Plan at a meeting
anticipated to be held in the Fall of 1997.
Tocqueville Asset Management L.P. serves as investment adviser to four
mutual funds and a number of private accounts. Tocqueville Asset Management L.P.
has approximately $720 million in assets under management.
8. Selected Financial Information
<TABLE>
<CAPTION>
Six months
Ended
June 30, Years Ended December 31,
1997 -------------------------------------
(unaudited) 1996 1995 1994 1993
----------- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the period)
Net Asset Value, Beginning of Period ...............$ 7.79 $ 8.91 $ 7.10 $ 9.49 $ 8.81
------ ------ ------ ----- ------
Income from investment operations:
Net investment income .............................. .202 .409 .419 .553 .563
Net realized and unrealized gains (losses)
on investments ................................... .16 (1.120) 1.810 (2.390) .876
------ ------- ------- ------ -------
Total from investment operations ......... .362 (.711) 2.229 (1.837) 1.439
------- ------- ------- ------ -------
Less Distributions:
Dividends from net investment income ............... (.202) (.409) (.419) (.553) (.563)
Dividends from net realized gains .................. - - - - (.196)
------- ------- ------- ------ -------
Total distributions ...................... (.202) (.409) (.419) (.553) (.759)
------- ------- ------- ------ -------
Net Asset Value, End of Period .....................$ 7.95 $ 7.79 $ 8.91 $ 7.10 $ 9.49
====== ====== ====== ====== ======
Total Return ....................................... 4.75% (8.01%) 32.02% (19.89%) 16.80%
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (000) .................... 8,967 16,252 12,622 10,558 16,280
Ratios to Average Net Assets:
Interest expense ................................. .51%+ .45% .39% .98% .39%
Operating expenses ............................... 2.91%+ 2.81% 2.81% 2.50% 1.77%*
------ ------ ------ ----- ------
Total expenses ........................... 3.42%+ 3.26% 3.20% 3.48% 2.16%*
====== ====== ====== ===== ======
Net investment income .................... 5.11%+ 4.88% 5.02% 6.80% 6.04%*
Portfolio turnover rate ............................ .62% 89.83% 53.27% 15.88% 51.26%
BANK LOANS
Amount outstanding at end of period (000 omitted) .. $1,643 $ 0 $ 0 $1,292 $3,714
Average amount of bank loans outstanding during
the period (000 omitted) ......................... $ 806 $ 823 $ 642 $1,690 $ 958
Average number of shares outstanding during
the period (000 omitted) ......................... 1,618 1,768 1,635 1,711 1,517
Average amount of debt per share during
the period ....................................... $ .50 $ .47 $ .39 $ .95 $ .63
<FN>
*This ratio is after expense reimbursement of .50% for each of the year ended December 31, 1993.
+Annualized.
</FN>
</TABLE>
10
<PAGE>
(left column)
THE CALIFORNIA MUNI FUND
90 Washington Street
New York, NY 10006
1-800-322-6864
This report and the financial statements contained
herein are submitted for the general information of
the shareholders of the Fund. The report is not
authorized for distribution to prospective investors
in the Fund unless preceded or accompanied by an
effective prospectus.
(right column)
--------------------------
THE CALIFORNIA MUNI FUND
Semi-Annual Report
June 30, 1997
(Unaudited)
THE CALIFORNIA MUNI FUND
Double
Tax-Free Investing
(logo)
--------------------------
