Phoenix California Tax Exempt Bonds, Inc.
MARKET AND PORTFOLIO REVIEW
Investment Environment
This past December marked the collapse of Orange County's creditworthiness, a
dramatic sign of some of the fundamental problems affecting California's
overall fiscal health. The event was a harsh reminder that despite the
state's improving economic outlook, the price of ignoring risks associated
with ongoing budget deficits can be steep.
As might be expected, the Orange County crisis sent investors quickly back to
the relative safety of quality credits. This renewed emphasis on good
fundamentals has helped higher quality tax-exempt issues to perform strongly
over the past several months.
Portfolio Review
The Fund has performed well over this reporting period. For the 12 months
ended April 30, 1995, Class A shares provided a total return of 6.34%.
According to the Lehman Brothers Municipal Bond Index, an unmanaged, commonly
used measure of long-term municipal bond performance, the market returned
6.69% over the same timeframe. Both of these returns assume reinvestment of
any distributions but exclude the effect of sales charges.
The Fund's strong results over this reporting period stemmed from its focus
on quality and lack of direct exposure to Orange County issues. As of April
30, nearly 60% of the portfolio's assets were rated "AAA" either by Moody's
or Standard & Poor's. During the final fiscal quarter, we also reduced
exposure to the hospital sector in view of the uncertainty clouding the
outlook for the health care industry.
Outlook
In the months ahead, we will continue to stress quality assets for the
portfolio. While California is experiencing employment growth and increased
housing starts, fiscal problems continue. Since the state is unable to
eliminate ongoing budget deficits, we expect investors will continue to
demand quality credits.
The tax-exempt sector is also likely to benefit from a limited supply of
issues--first-quarter issuance in the municipal sector was down almost 50%
from the first quarter of 1994. Finally, current talk of tax reform in
Washington has put some pressure on the municipal market; however,
significant tax reform is unlikely before 1997, if at all.
[Line chart]
Average Annual Total Return:
1 year ending 4/30/95 1.27%
5 years ending 4/30/95 6/61%
10 years ending 4/30/95 8.08%
Lehman Brothers' Pheonix California
Municipal Tax Exempt Bonds, Inc.-
Bond Fund Class A
4/30/85 10,000 9,525
4/30/86 12,266 11,457
4/30/87 12,919 12,059
3/40/88 14,049 12,733
4/30/89 15,304 14,185
4/30/90 16,406 15,043
4/30/91 18,292 16,752
4/30/92 20,030 18,206
4/30/93 20,565 20,095
4/30/94 23,052 20,457
4/30/95 24,585 21,750
[End line chart]
This chart assumes an initial gross investment of $10,000 made on 4/30/85 for
Class A shares. Total returns for Class A shares reflect the maximum sales
charge of 4.75% on the initial investment and assume reinvestment of
dividends and capital gains. The total return of -0.75% (since inception
7/26/94) for Class B shares reflects the 5% contingent deferred sales charge
(CDSC), which is applicable on all shares redeemed during the 1st year after
purchase and 4% for all shares redeemed during the 2nd year after purchase
(scaled down to 3%--3rd year; 2%--4th and 5th year and 0% thereafter.)
Performance of Class A and B shares is net of 0.25% and 1.0% distribution
fee, respectively. Returns indicate past performance, which is not predictive
of future performance. Investment return and principal value will fluctuate
so that your shares, when redeemed, may be worth more or less than the
original cost.
1
<PAGE>
Phoenix California Tax Exempt Bonds, Inc.
INVESTMENTS AT APRIL 30, 1995
STANDARD
& POOR'S PAR
RATING VALUE
(Unaudited) (000) VALUE
MUNICIPAL TAX-EXEMPT BONDS--97.5%
Certificates of Participation/Lease
Revenue--9.3%
California Public Works Lease
Revenue
5.25%, '06 AAA $ 1,640 $ 1,584,043
California State Public Works
5.375%, '19 AAA 5,000 4,487,700
California Statewide Community
4.90%, '09 AAA 2,200 1,956,130
Modesto Irrigation District 7.25%,
'15 A+ 2,000 2,058,120
San Mateo County Revenue
5.125%, '18 AAA 1,000 875,090
Total Certificates of Participation/
Lease Revenue 10,961,083
General Obligations--5.1%
California State G.O.
5.50%, '08 AAA 1,500 1,457,535
Central School District G.O.
7.05%, '16 A (b) 1,000 1,087,760
East Bay Regional Park District
G.O., Series B 5.75%, '15 AA- 2,155 2,052,853
Pomona School District G.O.,
Series C 5.60%, '12 AAA 1,500 1,426,320
Total General Obligations 6,024,468
Healthcare--6.4%
California Health Facilities 7%,
'10 AA 1,000 1,047,040
California Health Facilities
7.30%, '20 A+ 1,400 1,453,662
California Health Facilities
6.25%, '22 A+ 1,500 1,421,115
Grass Valley Hospital
7.25%, '19 A 2,000 2,057,540
San Bernardino Sisters of Charity
Health Care
7%, '21 AA 1,500 1,555,455
Total Healthcare 7,534,812
Housing Revenue--3.6%
California Housing Financing
Agency
7.25%, '17 AA- 845 883,794
California Housing Financing
Agency
7.75%, '17 AA- 450 469,850
Housing Revenue--continued
California Housing Financing
Agency Series C 7.20%, '17 AA- 875 904,592
L.A. Community Redevelopment
Agency Series A 6.55%, '27 AAA 2,000 2,015,260
Total Housing Revenue 4,273,496
Industrial Development Revenue--0.6%
San Diego Industrial Development
Revenue (San Diego Gas &
Electric) 9.25%, '20 A+ 675 695,635
Total Industrial Development Revenue 695,635
Pre-Refunded Revenue--17.8%
Covina Redevelopment Agency 8.80%,
'08 NR 1,200 1,426,332
Hayward Hospital Revenue (St. Rose
Hosp.) 10%, '04 AAA 585 733,900
Northern California Hydro Electric
7.50%, '23 AAA 195 234,569
Orange County Water District COP
7%, '15 AAA 1,000 1,112,010
Pasadena COP 6.75%, '15 A+ 2,000 2,199,980
Puerto Rico Hwy. Revenue Series T
6.625%, '18 AAA 200 222,076
Puerto Rico Public Buildings
7%, '19 AAA 500 541,330
Puerto Rico Public Buildings
Series L 6.875%, '21 AAA 3,170 3,567,169
Redlands COP Series C
7%, '22 AAA 1,000 1,116,540
Riverside Public Financing
Authority 7.80%, '08 Baa (b) 1,000 1,071,260
San Bernardino COP Series B 7%,
'28 AAA 2,200 2,465,430
San Gabriel Valley Schools
Financing 7.20%, '19 NR 1,200 1,319,772
San Jose Redevelopment Agency
7.80%, '11 NR 1,000 1,058,780
Southern California Public Power
Authority
5.50%, '20 A 915 810,434
Stockton COP 7.50%, '16 NR 1,000 1,036,260
Torrance Hospital COP
7.10%, '15 AAA 1,820 2,014,067
Total Pre-Refunded Revenue 20,929,909
See Notes to Financial Statements
2
<PAGE>
Puerto Rico--7.2%
Puerto Rico Aqueduct 7%, '19 A $ 1,500 $ 1,562,955
Puerto Rico Electric Power 7%, '21 A- 2,500 2,701,450
Puerto Rico Electric Power
Authority Series N 6%, '10 A- 1,500 1,490,595
Puerto Rico G.O. 5.375%, '06 A 2,000 1,896,720
Puerto Rico Highway Authority
Series T 6.625%, '18 A 800 822,392
Total Puerto Rico 8,474,112
Tax Revenue--12.0%
Cerritos Public Financing
Authority 6.50%, '23 AAA 1,755 1,827,833
Culver City Redevelopment Agency
4.60%, '20 AAA 4,500 3,562,650
Industry Urban Development Agency
10.40%, '15 NR 750 772,500
L.A. County Sales Tax 7%, '19 AA- 2,500 2,601,525
Los Angeles County Trans.
Authority Series A 5%, '21 AAA 3,750 3,174,300
San Francisco Redevelopment Agency
4.75%, '18 AAA 1,100 899,800
San Francisco Redevelopment Agency
5.50%, '18 A- 1,500 1,290,870
Total Tax Revenue 14,129,478
Utility Revenue--35.5%
Beverly Hills Wastewater 6%, '22 AA- 2,230 2,174,629
California State Water Series L
5.75%, '19 AA 4,000 3,778,840
Utility Revenue--continued
Chino Basin 5.90%, '11 AAA 2,000 1,990,640
Contra Costa Water District Series
G 5.75%, '14 AAA 3,700 3,556,551
Fresno Sewer Revenue Series A-1
4.50%, '23 AAA 500 382,125
Irvine Ranch Water District
7.80%, '08 A+ 1,500 1,553,595
Irvine Ranch Water District
8.25%, '23 A+ 2,000 2,109,340
L.A. Department of Water & Power
4.50%, '12 AAA 3,800 3,127,362
L.A. Department of Water & Power
5.875%, '30 AAA 5,000 4,741,500
L.A. Wastewater Series D
4.70%, '17 AAA 7,000 5,703,250
L.A. Wastewater Series D
4.70%, '19 AAA 4,000 3,230,560
Sacramento Utility District
Electric Series H 5.75%, '11 AAA 5,000 4,876,150
Sacramento Utility District
Electric Series G 4.75%, '21 AAA 3,000 2,424,630
Southern California Public Power
Authority 5.75%, '21 AA- 600 564,461
Southern California Public Power
Series A 4.875%, '20 AAA 2,000 1,655,000
Total Utility Revenue 41,868,633
TOTAL MUNICIPAL TAX-EXEMPT BONDS
(Identified cost $110,594,797) 114,891,626
TOTAL INVESTMENTS--97.5%
(Identified cost $110,594,797) 114,891,626(a)
Cash and receivables, less liabilities--2.5% 2,938,731
NET ASSETS--100.0% $117,830,357
(a) Federal Income Tax Information: Net unrealized appreciation of investment
securities is comprised of gross appreciation of $5,659,989 and gross
depreciation of $1,363,160 for income tax purposes. At April 30, 1995, the
aggregate cost of securities for federal income tax purposes was
$110,594,797.
(b) Moody's rating.
See Notes to Financial Statements
3
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1995
Assets
Investment securities at value
(Identified cost $110,594,797) $114,891,626
Receivables
Fund shares sold 44,266
Investment securities sold 1,046,288
Interest 2,297,710
Total assets 118,279,890
Liabilities
Payables
Custodian 190,067
Distribution payable 78,322
Fund shares repurchased 62,830
Investment advisory fee 44,149
Distribution fee 24,810
Financial agent fee 2,943
Trustees' fee 2,980
Transfer agent fee 8,672
Accrued expenses 34,760
Total liabilities 449,533
Net Assets $117,830,357
Net Assets Consist of:
Capital paid in on shares of capital stock $114,376,179
Distributions in excess of net investment income (34,140)
Accumulated net realized losses (808,511)
Net unrealized appreciation 4,296,829
Net Assets $117,830,357
Class A
Shares of capital stock outstanding, $.01 par value,
250,000,000 shares authorized 9,290,765
(Net Assets $117,370,225)
Net asset value per share $ 12.63
Offering price per share
$12.63/(1-4.75%) $ 13.26
Class B
Shares of capital stock outstanding, $.01 par value,
250,000,000 shares authorized 36,445
(Net Assets $460,132)
Net asset value and offering price per share $ 12.63
STATEMENT OF OPERATIONS
YEAR ENDED APRIL 30, 1995
Investment Income
Interest $8,022,689
Total investment income 8,022,689
Expenses
Investment advisory fee 549,917
Distribution fee--Class A 305,043
Distribution fee--Class B 1,865
Financial agent fee 36,661
Transfer agent 91,801
Professional 50,421
Registration 38,140
Custodian 24,891
Trustees 22,703
Printing 11,532
Miscellaneous 8,899
Total expenses 1,141,873
Net investment income 6,880,816
Net Realized and Unrealized Gain (Loss) on Investments
Net realized gain on securities 946,797
Net unrealized depreciation on investments (797,795)
Net gain on investments 149,002
Net increase in net assets resulting from operations $7,029,818
See Notes to Financial Statements
4
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS Year Year
Ended Ended
April 30, 1995 April 30, 1994
<S> <C> <C>
From Operations
Net investment income $ 6,880,816 $ 8,321,950
Net realized gain 946,797 2,811,583
Net unrealized depreciation (797,795) (8,191,323)
Increase in net assets resulting from operations 7,029,818 2,942,210
From Distributions to Shareholders
Net investment income--Class A (7,272,931) (7,888,033)
Net investment income--Class B (9,873) --
Net realized gains--Class A (2,856,630) (1,202,059)
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 (10,992,849) (9,090,092)
From Share Transactions
Class A
Proceeds from sales of shares (496,574 and 762,733 shares, respectively) 6,213,919 10,459,258
Net asset value of shares issued from reinvestment of distributions
(447,402 and 324,430 shares, respectively) 5,495,965 4,431,662
Cost of shares repurchased (1,731,374 and 1,841,834 shares, respectively) (21,728,823) (25,138,213)
Total (10,018,939) (10,247,293)
Class B
Proceeds from sales of shares (41,888 and 0 shares, respectively) 514,453 --
Net asset value of shares issued from reinvestment of distributions (1,035
and 0 shares, respectively) 12,543 --
Cost of shares repurchased (6,478 and 0 shares, respectively) (79,763) --
Total 447,233 --
Decrease in net assets from share transactions (9,571,706) (10,247,293)
Net decrease in net assets (13,534,737) (16,395,175)
Net Assets
Beginning of period 131,365,094 147,760,269
End of period (including distributions in excess of net investment income
of ($34,140) and undistributed net investment income of $401,988,
respectively) $117,830,357 $131,365,094
See Notes to Financial Statements
</TABLE>
5
<PAGE>
FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
Class A Class B
Year Ended April 30,
From
inception
7/26/94 to
1995 1994 1993 1992 1991 4/30/95
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $13.03 $13.64 $13.20 $13.07 $12.58 $13.04
Income from investment operations
Net investment income 0.71 0.80 0.81 0.87 0.90 0.48
Net realized and unrealized gain (loss) 0.05 (0.53) 0.51 0.24 0.51 0.01
Total from investment operations 0.76 0.27 1.32 1.11 1.41 0.49
Less distributions
Dividends from net investment income (0.76) (0.76) (0.80) (0.88) (0.90) (0.50)
Distributions from net realized gains (0.31) (0.12) (0.08) (0.10) (0.02) (0.31)
Distributions in excess of accumulated
net realized gains (0.09) -- -- -- -- (0.09)
Total distributions (1.16) (0.88) (0.88) (0.98) (0.92) (0.90)
Change in net asset value (0.40) (0.61) 0.44 0.13 0.49 (0.41)
Net asset value, end of period $12.63 $13.03 $13.64 $13.20 $13.07 $12.63
Total return( (1)) 6.34% 1.80% 10.38% 8.68% 11.36% 4.10%(3)
Ratios/supplemental data:
Net assets, end of period (thousands) $117,370 $131,365 $147,760 $139,118 $124,051 $460
Ratio to average net assets of:
Operating expenses 0.93% 0.85% 0.90% 0.68% 0.63% 1.55%(2)
Net investment income 5.63% 5.82% 6.00% 6.55% 6.94% 4.90%(2)
Portfolio turnover 51% 25% 25% 33% 26% 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
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 $14,251 for Class A shares and deferred sales
charges of $671 for Class B shares for the year ended April 30, 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 year ended April 30, 1995, $2,490 was earned by the
Distributor and $304,418 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. Effective June 1, 1994, PEPCO serves as
the Fund's Transfer Agent with State Street Bank and Trust as sub-transfer
agent. Prior to that date, State Street was the Transfer Agent. For the year
ended April 30, 1995, transfer agent fees were $91,801 of which PEPCO
retained $32,551, which is net of fees paid to State Street.
At April 30, 1995, PHL and affiliates held 182 Class A shares and 8,618 Class
B shares of the Fund with a combined value of $111,058.
3. PURCHASE AND SALE OF SECURITIES
Purchases and sales of securities, excluding short-term securities, for the
year ended April 30, 1995, aggregated $60,846,547 and $75,030,933,
respectively. There were no purchases or sales of long-term U.S. Government
securities.
4. RECLASS OF CAPITAL ACCOUNTS
In accordance with recently approved accounting pronouncements, the Fund has
recorded several reclassifications in the capital accounts. These
reclassifications have no impact on the
7
<PAGE>
PHOENIX CALIFORNIA TAX EXEMPT BONDS, INC.
NOTES TO FINANCIAL STATEMENTS (Continued)
net asset value of the Fund and are designed generally to present
undistributed income and realized gains on a tax basis which is considered to
be more informative to the shareholder. As of April 30, 1995, the Fund has
decreased undistributed net investment income by $4,207, increased
accumulated net realized gains by $5,888 and decreased paid in capital by
$1,681.
5. 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.
6. 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 $808,511
in losses occurring between November 1, 1994 and April 30, 1995.
TAX INFORMATION NOTICE (Unaudited)
For federal income tax purposes, 99.5% of the income dividends paid by the
Fund qualify as exempt-interest dividends.
This report is authorized for use by other than shareholders only when
accompanied or preceded by the delivery of a current prospectus showing the
sales charge and other material information.
8
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP [logo of Price Waterhouse]
To the Board of Directors and Shareholders of
Phoenix California Tax Exempt Bonds, Inc.
In our opinion, the accompanying statement of assets and liabilities,
including the schedule of investments (except for bond ratings), and the
related statements of operations and of changes in net assets and the
financial highlights present fairly, in all material respects, the financial
position of Phoenix California Tax Exempt Bonds, Inc. (the "Fund") at April
30, 1995, the results of its operations for the year then ended, the changes
in its net assets for each of the two years in the period then ended and the
financial highlights for each of the periods indicated, 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 April
30, 1995 by correspondence with the custodian, provide a reasonable basis for
the opinion expressed above.
[signature of Price Waterhouse LLP]
Boston, Massachusetts
June 12, 1995
9
<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
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
One American Row
Hartford, Connecticut 06115-2520
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
Independent Accountants
Price Waterhouse LLP
160 Federal Street
Boston, Massachusetts 02110
10
<PAGE>
Phoenix Funds
Phoenix California
Tax Exempt Bonds, Inc.
Annual Report
April 30, 1995
[artwork showing dollar bills]
[diamonds logo] Phoenix Investments
Phoenix California Tax Exempt Bonds, Inc.
P.O. Box 2200
Enfield, CT 06083-2200
[diamonds logo] Phoenix Investments
PEP 742 (6/95)
Bulk Rate Mail
U.S. Postage
PAID
Springfield, MA
Permit No. 444
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000718027
<NAME> PHOENIX CALIFORNIA TAX EXEMPT BONDS, INC.
<SERIES>
<NUMBER> 1
<NAME> CLASS A
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> APR-30-1995
<PERIOD-START> MAY-01-1994
<PERIOD-END> APR-30-1995
<INVESTMENTS-AT-COST> 110,595
<INVESTMENTS-AT-VALUE> 114,892
<RECEIVABLES> 3,388
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 118,280
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 450
<TOTAL-LIABILITIES> 450
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 114,376
<SHARES-COMMON-STOCK> 9,291
<SHARES-COMMON-PRIOR> 10,078
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (34)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (809)
<ACCUM-APPREC-OR-DEPREC> 4,297
<NET-ASSETS> 117,830
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 8,023
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