PHOENIX CALIFORNIA TAX EXEMPT BONDS, INC.
MARKET AND PORTFOLIO REVIEW
Investment Environment
Over the past year, the tax-exempt market has seen a much improved
investment climate. Interest rates have fallen dramatically thus far in 1995,
causing municipal bond prices to rebound significantly from 1994 levels.
Also, while the Orange County debacle has not been completely resolved, it
has begun to diminish in terms of market focus.
Nevertheless, caution is still warranted. Given the ongoing fiscal problems
in California, it's essential to closely monitor the creditworthiness of
California municipal bonds to ensure the quality and safety of the
portfolio's investments. We believe tax-exempt investors will continue to
demand higher quality California municipal bonds in the months ahead.
Portfolio Review
The Fund performed solidly over this reporting period. For the six months
ended October 31, 1995, Class A shares provided a total return of 6.56% and
Class B shares returned 6.11%. This was in line with the Lehman Brothers
Municipal Bond Index, which returned 6.76% over the same timeframe. All of
these returns assume reinvestment of any distributions but exclude the effect
of sales charges.
Our focus on quality assets over this reporting period has benefited the
portfolio. Our strategy has also emphasized call-protected bonds, which have
performed well in the current declining interest-rate environment. As of
October 31, nearly 52% of the portfolio's assets were rated "AAA" either by
Moody's or Standard & Poor's.
Outlook
In the months ahead, we will continue to focus on quality assets for the
portfolio, especially given the ongoing fiscal problems in California.
Overall, our outlook is positive. The tax-exempt market has benefited from a
more limited supply of issues in 1995. Year-to-date issuance in the municipal
sector was down almost 20% from the first 10 months of 1994. And while
current talk of tax reform has put some pressure on the municipal market, we
believe significant tax reform is unlikely before 1997.
<PAGE>
Phoenix California Tax Exempt Bonds, Inc.
INVESTMENTS AT OCTOBER 31, 1995
(Unaudited)
<TABLE>
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
-------- ------- -------------
<S> <C> <C> <C>
MUNICIPAL TAX-EXEMPT BONDS--95.4%
Certificates of Participation/Lease
Revenue--9.5%
California Public Works
Lease Revenue 5.25%, '06 AAA $1,640 $ 1,680,852
California State Public
Works 5.375%, '19 AAA 5,000 4,725,750
California Statewide
Community 4.90%, '09 AAA 2,200 2,086,370
Modesto Irrigation District
7.25%, '15 A+ 2,000 2,061,380
San Mateo County Revenue
5.125%, '18 AAA 1,000 927,220
-------------
Total Certificates of Participation/
Lease Revenue 11,481,572
-------------
General Obligations--5.2%
California State G.O.
5.50%, '08 AAA 1,500 1,540,200
Central School District
G.O. 7.05%, '16 A((b)) 1,000 1,120,420
East Bay Regional Park
District G.O., Series B
5.75%, '15 AA- 2,155 2,141,833
Pomona School District
G.O., Series C 5.60%, '12 AAA 1,500 1,499,595
-------------
Total General Obligations 6,302,048
-------------
Healthcare--5.6%
California Health Facilities
7.30%, '20 A+ 1,400 1,501,024
California Health
Facilities 6.25%, '22 A+ 1,500 1,504,920
Grass Valley Hospital
7.25%, '19 A+ 2,000 2,116,240
San Bernardino Sisters of
Charity Health Care 7%, '21 AA 1,500 1,600,590
-------------
Total Healthcare 6,722,774
-------------
Housing Revenue--3.6%
California Housing Financing
Agency 7.25%, '17 A+ 845 896,156
California Housing Financing
Agency 7.75%, '17 A+ 435 456,689
Housing Revenue--continued
California Housing
Financing Agency Series C
7.20%, '17 A+ $ 855 $ 898,622
L.A. Community
Redevelopment Agency
Series A 6.55%, '27 AAA 2,000 2,056,660
-------------
Total Housing Revenue 4,308,127
-------------
Pre-Refunded Revenue--17.5%
Covina Redevelopment Agency
8.80%, '08 NR 1,200 1,473,336
Hayward Hospital Revenue
(St. Rose Hosp.) 10%, '04 AAA 550 704,693
Northern California Hydro
Electric 7.50%, '23 AAA 195 237,208
Orange County Water
District COP 7%, '15 AA 1,000 1,129,520
Pasadena COP 6.75%, '15 A+ 2,000 2,236,200
Puerto Rico Hwy. Revenue
Series T 6.625%, '18 AAA 200 227,060
Puerto Rico Public
Buildings 7%, '19 AAA 500 544,220
Puerto Rico Public
Buildings Series L
6.875%, '21 A 3,170 3,644,137
Redlands COP Series C
7%, '22 Aaa 1,000 1,135,600
Riverside Public Financing
Authority 7.80%, '08 Baa((b)) 1,000 1,065,260
San Bernardino COP Series B
7%, '28 A 2,200 2,515,568
San Gabriel Valley Schools
Financing 7.20%, '19 NR 1,200 1,337,160
San Jose Redevelopment
Agency 7.80%, '11 A 1,000 1,048,440
Southern California Public
Power Authority
5.50%, '20 A 915 844,216
Stockton COP 7.50%, '16 NR 1,000 1,026,811
Torrance Hospital COP
7.10%, '15 AAA 1,820 2,076,984
-------------
Total Pre-Refunded Revenue 21,246,413
-------------
Puerto Rico--7.3%
Puerto Rico Aqueduct 7%,
'19 BBB 1,500 1,612,905
Puerto Rico Electric Power
7%, '21 A- 2,500 2,854,700
Puerto Rico Electric Power
Authority Series N 6%,
'10 A- 1,500 1,522,935
See Notes to Financial Statements
2
<PAGE>
Phoenix California Tax Exempt Bonds, Inc.
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
-------- ------- -------------
Puerto Rico--continued
Puerto Rico G.O. 5.375%,
'06 A $2,000 $ 2,068,780
Puerto Rico Highway
Authority Series T
6.625%, '18 A 800 849,080
-------------
Total Puerto Rico 8,908,400
-------------
Tax Revenue--10.0%
Culver City Redevelopment
Agency 4.60%, '20 AAA 4,500 3,765,510
L.A. County Sales Tax 7%,
'19 A+ 2,500 2,690,325
L.A. County Transit
Authority Series A 5%,
'21 AAA 3,750 3,374,700
San Francisco Redevelopment
Agency 4.75%, '18 AAA 1,100 954,888
San Francisco Redevelopment
Agency 5.50%, '18 AAA 1,500 1,377,900
-------------
Total Tax Revenue 12,163,323
-------------
Utility Revenue--36.7%
Beverly Hills Wastewater
6%, '22 AA 2,230 2,243,603
California State Water
Series L 5.75%, '19 AA 4,000 3,943,520
Chino Basin, California
5.90%, '11 AAA 2,000 2,082,980
Contra Costa Water District
Series G 5.75%, '14 AAA 5,740 5,760,147
Fresno Sewer Revenue Series
A-1 4.50%, '23 AAA 500 404,800
Irvine Ranch Water District
7.80%, '08 A 1,500 1,582,770
Irvine Ranch Water District
8.25%, '23 BBB 2,000 2,150,560
L.A. Department of Water &
Power 4.50%, '12 AAA 3,800 3,278,032
Utility Revenue--continued
L.A. Wastewater Series D
4.70%, '17 AAA $7,000 $ 6,048,910
Metro Water District
Series A 5.50%, '25 AAA 3,000 2,893,950
Sacramento Cogeneration
Project 6.375%, '10 BBB- 1,000 1,025,990
Sacramento Utility District
Electric Series G 4.75%,
'21 (c) AAA 1,000 860,180
Sacramento Utility District
Electric Series H 5.75%,
'11 AAA 5,000 5,074,050
San Diego Transportation
Series A 4.75%, '08 AAA 2,000 1,908,800
San Francisco Airport
Revenue 6.25%, '10 AAA 1,000 1,050,610
Southern California Public
Power 5.75%, '21 AA- 600 586,590
Southern California Public
Power Series A 4.875%,
'20 AAA 2,000 1,758,620
University of California
Project C 5%, '23 AAA 2,000 1,792,880
-------------
Total Utility Revenue 44,446,992
-------------
TOTAL MUNICIPAL TAX-EXEMPT BONDS
(Identified cost $107,513,959) 115,579,649
-------------
SHORT-TERM OBLIGATIONS
Federal Agency Securities--2.9%
Federal Home Loan Mortgage
Assn. 5.85%, 11-1-95 A-1+ 3,480 3,480,000
-------------
TOTAL SHORT-TERM OBLIGATIONS
(Identified cost $3,480,000) 3,480,000
-------------
TOTAL INVESTMENTS--98.3%
(Identified cost $110,993,959) 119,059,649(a)
Cash & receivables, less liabilities--1.7% 2,019,745
-------------
NET ASSETS--100.0% $121,079,394
=============
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $8,402,476 and gross
depreciation of $336,786 for income tax purposes. At October 31, 1995,
the aggregate cost of securities for federal income tax purposes was
$110,993,959.
(b) Moody's rating.
(c) Segregated as collateral for initial margin on futures contracts.
See Notes to Financial Statements
3
<PAGE>
Phoenix California Tax Exempt Bonds, Inc.
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1995
(Unaudited)
Assets
Investment securities at value
(Identified cost $110,993,959) $119,059,649
Cash 4,505
Receivables
Fund shares sold 174,170
Interest 2,138,484
------------
Total assets 121,376,808
------------
Liabilities
Payables
Dividend distributions 115,026
Variation margin for futures contracts 4,219
Fund shares repurchased 92,648
Investment advisory fee 46,077
Distribution fee 26,094
Financial agent fee 3,072
Trustees' fee 1,963
Accrued expenses 8,315
------------
Total liabilities 297,414
------------
Net Assets $121,079,394
============
Net Assets Consist of:
Capital paid in on shares of capital stock $113,655,265
Distributions in excess of net investment income (427,049)
Accumulated net realized losses (162,480)
Net unrealized appreciation 8,013,658
------------
Net Assets $121,079,394
============
Class A
Shares of capital stock outstanding, $.01 par
value, 250,000,000 shares authorized
(Net Assets $120,250,358) 9,203,570
Net asset value per share $13.07
Offering price per share
$13.07/(1-4.75%) $13.72
Class B
Shares of capital stock outstanding, $.01 par
value, 250,000,000 shares authorized
(Net Assets $829,036) 63,460
Net asset value and offering price per share $13.06
STATEMENT OF OPERATIONS
SIX MONTHS ENDED OCTOBER 31, 1995
(Unaudited)
Investment Income
Interest $3,736,839
----------
Total investment income 3,736,839
----------
Expenses
Investment advisory fee 271,547
Distribution fee--Class A 150,081
Distribution fee--Class B 3,115
Financial agent fee 18,103
Transfer agent 39,488
Professional 28,494
Printing 18,055
Trustees 11,343
Registration 10,935
Custodian 3,171
Miscellaneous 9,874
----------
Total expenses 564,206
----------
Net investment income 3,172,633
----------
Net Realized and Unrealized Gain (Loss) on Investments
Net realized gain on securities 659,706
Net realized loss on futures contracts (13,675)
Net unrealized appreciation on
investments 3,716,829
----------
Net gain on investments 4,362,860
----------
Net increase in net assets resulting from
operations $7,535,493
==========
See Notes to Financial Statements
4
<PAGE>
Phoenix California Tax Exempt Bonds, Inc.
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended Year
October 31, 1995 Ended
(Unaudited) April 30, 1995
---------------- -----------------
<S> <C> <C>
From Operations
Net investment income $ 3,172,633 $ 6,880,816
Net realized gains 646,031 946,797
Net unrealized appreciation (depreciation) 3,716,829 (797,795)
-------------- ---------------
Increase in net assets resulting from operations 7,535,493 7,029,818
-------------- ---------------
From Distributions to Shareholders
Net investment income--Class A (3,549,844) (7,272,931)
Net investment income--Class B (15,698) (9,873)
Net realized gains--Class A -- (2,856,630)
Net realized gains--Class B -- (9,083)
Distributions in excess of net investment income--Class A -- (29,892)
Distributions in excess of net investment income--Class B -- (41)
Distributions in excess of accumulated net realized
gains--Class A -- (811,818)
Distributions in excess of accumulated net realized
gains--Class B -- (2,581)
-------------- ---------------
Decrease in net assets from distributions to shareholders (3,565,542) (10,992,849)
-------------- ---------------
From Share Transactions
Class A
Proceeds from sales of shares (593,133 and 496,574 shares,
respectively) 7,646,533 6,213,919
Net asset value of shares issued from reinvestment of
distributions (115,157 and 447,402 shares, respectively) 1,481,723 5,495,965
Cost of shares repurchased (795,485 and 1,731,374 shares,
respectively) (10,193,990) (21,728,823)
-------------- ---------------
Total (1,065,734) (10,018,939)
-------------- ---------------
Class B
Proceeds from sales of shares (31,706 and 41,888 shares,
respectively) 405,511 514,453
Net asset value of shares issued from reinvestment of
distributions (712 and 1,035, respectively) 9,157 12,543
Cost of shares repurchased (5,403 and 6,478 shares,
respectively) (69,848) (79,763)
-------------- ---------------
Total 344,820 447,233
-------------- ---------------
Decrease in net assets from share transactions (720,914) (9,571,706)
-------------- ---------------
Net increase (decrease) in net assets 3,249,037 (13,534,737)
Net Assets
Beginning of period 117,830,357 131,365,094
-------------- ---------------
End of period (including distributions in excess of net
investment income of ($427,049) and ($34,140),
respectively) $121,079,394 $117,830,357
============== ===============
</TABLE>
See Notes to Financial Statements
5
<PAGE>
Phoenix California Tax Exempt Bonds, Inc.
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
Class A
-----------------------------------------------------------------
Six
Months
Ended
10/31/95 Year Ended April 30,
(Unaudited) 1995 1994 1993 1992 1991
--------- -------- -------- -------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $12.63 $13.03 $13.64 $13.20 $13.07 $12.58
Income from investment operations
Net investment income 0.34 0.71 0.80 0.81 0.87 0.90
Net realized and unrealized gain
(loss) 0.48 0.05 (0.53) 0.51 0.24 0.51
-------- ------- ------- ------- ------- --------
Total from investment operations 0.82 0.76 0.27 1.32 1.11 1.41
-------- ------- ------- ------- ------- --------
Less distributions
Dividends from net investment
income (0.38) (0.76) (0.76) (0.80) (0.88) (0.90)
Distributions from net realized
gains -- (0.31) (0.12) (0.08) (0.10) (0.02)
Distributions in excess of
accumulated net realized gains -- (0.09) -- -- -- --
-------- ------- ------- ------- ------- --------
Total distributions (0.38) (1.16) (0.88) (0.88) (0.98) (0.92)
-------- ------- ------- ------- ------- --------
Change in net asset value 0.44 (0.40) (0.61) 0.44 0.13 0.49
-------- ------- ------- ------- ------- --------
Net asset value, end of period $13.07 $12.63 $13.03 $13.64 $13.20 $13.07
======== ======= ======= ======= ======= ========
Total return( (1)) 6.56%((3)) 6.34% 1.80% 10.38% 8.68% 11.36%
Ratios/supplemental data:
Net assets, end of period
(thousands) $120,250 $117,370 $131,365 $147,760 $139,118 $124,051
Ratio to average net assets of:
Operating expenses 0.94%((2)) 0.93% 0.85% 0.90% 0.68% 0.63%
Net investment income 5.29%((2)) 5.63% 5.82% 6.00% 6.55% 6.94%
Portfolio turnover 18%((2)) 51% 25% 25% 33% 26%
</TABLE>
<TABLE>
<CAPTION>
Class B
---------------------
Six From
Months Inception
Ended 7/26/94
10/31/95 to
(Unaudited) 4/30/95
--------- ---------
<S> <C> <C>
Net asset value, beginning of
period $12.63 $13.04
Income from investment operations
Net investment income 0.31 0.48
Net realized and unrealized gain
(loss) 0.44 0.01
-------- --------
Total from investment operations 0.75 0.49
-------- --------
Less distributions
Dividends from net investment
income (0.32) (0.50)
Distributions from net realized
gains -- (0.31)
Distributions in excess of
accumulated net realized gains -- (0.09)
-------- --------
Total distributions (0.32) (0.90)
-------- --------
Change in net asset value 0.43 (0.41)
-------- --------
Net asset value, end of period $13.06 $12.63
======== ========
Total return((1)) 6.11%((3)) 4.10%((3))
Ratios/supplemental data:
Net assets, end of period
(thousands) $829 $460
Ratio to average net assets of:
Operating expenses 1.69%((2)) 1.55%((2))
Net investment income 4.52%((2)) 4.90%((2))
Portfolio turnover 18%((2)) 51%
</TABLE>
((1)) Maximum sales charge is not reflected in total return calculation.
((2)) Annualized
((3)) Not annualized
See Notes to Financial Statements
6
<PAGE>
PHOENIX CALIFORNIA TAX EXEMPT BONDS, INC.
NOTES TO FINANCIAL STATEMENTS
October 31, 1995 (Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES
Phoenix California Tax Exempt Bonds, Inc. (the "Fund") is organized as a
Maryland corporation and is registered under the Investment Company Act of
1940, as amended, as a diversified open-end management investment company.
The Fund offers both Class A and Class B shares. Class A shares are sold with
a front-end sales charge of up to 4.75%. Class B shares are sold with a
contingent deferred sales charge which declines from 5% to zero depending on
the period of time the shares are held. Both classes of shares have identical
voting, dividend, liquidation and other rights and the same terms and
conditions, except that each class bears different distribution expenses and
has exclusive voting rights with respect to its distribution plan. Income and
expenses of the Fund are borne pro rata by the holders of both classes of
shares, except that each class bears distribution expenses unique to that
class.
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. These
policies are in conformity with generally accepted accounting principles.
A. Security valuation:
Municipal bonds are valued at the most recently quoted bid prices or at
bid prices based on a matrix theory which considers such factors as security
prices, yields, maturities, coupons and ratings, furnished by dealers and an
independent pricing service. Short-term investments having a remaining
maturity of less than sixty days are valued at amortized cost which
approximates market. All other securities and assets are valued at their fair
value as determined in good faith by or under the direction of the Directors.
B. Security transactions and related income:
Security transactions are recorded on the trade date. Interest income is
recorded on the accrual basis. Premiums and discounts are amortized to income
using the effective interest method. Realized gains and losses are determined
on the identified cost basis.
C. Income taxes:
It is the policy of the Fund to comply with the requirements of the
Internal Revenue Code (the "Code") applicable to regulated investment
companies and to distribute substantially all of its taxable and tax exempt
income to its shareholders. In addition, the Fund intends to distribute an
amount sufficient to avoid imposition of any excise tax under Section 4982 of
the Code. Therefore, no provision for federal income taxes or excise taxes
has been made.
D. Distributions to shareholders:
Distributions to shareholders are declared and recorded daily. Income and
capital gain distributions are determined in accordance with income tax
regulations which may differ from generally accepted accounting principles.
These differences include the treatment of non-taxable dividends, expiring
capital loss carryforwards, partnerships, and losses deferred due to wash
sales and excise tax regulations. Permanent book and tax basis differences
relating to shareholder distributions will result in reclassifications to
paid in capital.
2. INVESTMENT ADVISORY FEE AND RELATED PARTY TRANSACTIONS
As compensation for its services to the Fund, the Investment Adviser,
National Securities and Research Corporation, an indirect wholly-owned
subsidiary of Phoenix Home Life Mutual Insurance Company ("PHL"), is entitled
to a fee at an annual rate of 0.45% of the average daily net assets of the
Fund for the first $1 billion.
As Distributor of the Fund's shares, Phoenix Equity Planning Corp.
("PEPCO"), an indirect wholly-owned subsidiary of PHL, has advised the Fund
that it received selling commissions of $10,582 for Class A shares and
deferred sales charges of $416 for Class B shares for the six months ended
October 31, 1995. In addition, the Fund pays PEPCO a distribution fee at an
annual rate of 0.25% for Class A shares and 1.00% for Class B shares of the
average daily net assets of the Fund. The Distributor has advised the Fund
that of the total amount expensed for the six months ended October 31, 1995,
$14,229 was earned by the Distributor and $138,967 was earned by unaffiliated
participants.
As Financial Agent of the Fund, PEPCO receives a fee at an annual rate of
0.03% of the average daily net assets of the Fund for bookkeeping,
administration and pricing services. PEPCO serves as the Fund's Transfer
Agent with State Street Bank and Trust as sub-transfer agent. For the six
months ended October 31, 1995, transfer agent fees were $39,488 of which
PEPCO retained $14,451, which is net of fees paid to State Street.
At October 31, 1995, PHL and affiliates held 187 Class A shares and 8,837
Class B shares of the Fund with a combined value of $117,859.
7
<PAGE>
PHOENIX CALIFORNIA TAX EXEMPT BONDS, INC.
NOTES TO FINANCIAL STATEMENTS
October 31, 1995 (Unaudited) (Continued)
3. PURCHASE AND SALE OF SECURITIES
Purchases and sales of securities, excluding short-term securities and
futures, for the six months ended October 31, 1995, aggregated $10,374,837
and $14,208,127, respectively. There were no purchases or sales of long-term
U.S. Government securities.
At October 31, 1995, the Fund had entered into futures contracts as
follows:
Municipal Value of Market Net
Bond Future Number of Contract Value of Unrealized
Contracts Contracts when Opened Contracts Depreciation
------------- --------- ----------- --------- -------------
December, 95 8 $908,749 $936,500 $(27,751)
December, 95 7 795,156 819,437 (24,281)
------------
$(52,032)
============
4. ASSET CONCENTRATION
There are certain risks arising from the Fund's concentration in
California municipal securities. Certain California constitutional
amendments, legislative measures, executive orders, administrative
regulations, court decisions and voter initiatives could result in certain
adverse consequences including impairing the ability of certain issuers of
California municipal securities to pay principal and interest on their
obligations.
5. CAPITAL LOSS CARRYOVERS
Under current tax law, capital losses realized after October 31, 1994 may
be deferred and treated as occurring on the first day of the following fiscal
year. For the year ended April 30, 1995, the Fund elected to defer $818,075
in losses occurring between November 1, 1994 and April 30, 1995.
This report is not authorized for distribution to prospective investors in
the Phoenix California Tax Exempt Bonds, Inc. unless preceded or accompanied
by an effective Prospectus which includes information concerning the sales
charge, Fund's record and other pertinent information.
8
<PAGE>
PHOENIX CALIFORNIA TAX EXEMPT BONDS, INC.
101 Munson Street
Greenfield, Massachusetts 01301
Directors
C. Duane Blinn
Robert Chesek
E. Virgil Conway
Harry Dalzell-Payne
Leroy Keith, Jr.
Philip R. McLoughlin
James M. Oates
Philip R. Reynolds
Herbert Roth, Jr.
Richard E. Segerson
Lowell P. Weicker, Jr.
Officers
Philip R. McLoughlin, President
Martin J. Gavin, Executive Vice President
Michael E. Haylon, Executive Vice President
James M. Dolan, Vice President
William R. Moyer, Vice President
Leonard J. Saltiel, Vice President
James D. Wehr, Vice President
Nancy G. Curtiss, Treasurer
G. Jeffrey Bohne, Secretary
Investment Adviser
National Securities & Research Corporation
56 Prospect Street
Hartford, Connecticut 06115-0480
Principal Underwriter
Phoenix Equity Planning Corporation
100 Bright Meadow Boulevard
P.O. Box 2200
Enfield, Connecticut 06083-2200
Transfer Agent
Phoenix Equity Planning Corporation
100 Bright Meadow Boulevard
P.O. Box 2200
Enfield, Connecticut 06083-2200
Custodian
State Street Bank and Trust Company
P.O. Box 351
Boston, Massachusetts 02101
Legal Counsel
Dechert, Price & Rhoads
1500 K Street, N.W.
Washington, D.C. 20005-1208
9
<PAGE>
Phoenix Funds
Phoenix California
Tax Exempt Bonds, Inc.
Semiannual Report
October 31, 1995
[graphic of older dollars]
[Phoenix Duff & Phelps logo]
Phoenix California Tax Exempt Bonds, Inc.
P.O. Box 2200
Enfield, CT 06083-2200
[Phoenix Duff & Phelps logo]
PEP 680 (12/95)
Bulk Rate Mail
U.S. Postage
PAID
Springfield, MA
Permit No. 444
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NAME> Class A
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> APR-30-1996
<PERIOD-START> MAY-01-1995
<PERIOD-END> OCT-31-1995
<INVESTMENTS-AT-COST> 110994
<INVESTMENTS-AT-VALUE> 119060
<RECEIVABLES> 2313
<ASSETS-OTHER> 4
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 121377
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 297
<TOTAL-LIABILITIES> 297
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 113655
<SHARES-COMMON-STOCK> 9204
<SHARES-COMMON-PRIOR> 9291
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (427)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (163)
<ACCUM-APPREC-OR-DEPREC> 8014
<NET-ASSETS> 121079
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 3737
<OTHER-INCOME> 0
<EXPENSES-NET> (564)
<NET-INVESTMENT-INCOME> 3173
<REALIZED-GAINS-CURRENT> 646
<APPREC-INCREASE-CURRENT> 3716
<NET-CHANGE-FROM-OPS> 7535
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 3550
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WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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