PHOENIX SEMIANNUAL REPORT
October 31, 1996
Phoenix California
Tax Exempt Bonds, Inc.
Semiannual Report
PHOENIX DUFF & PHELPS
LOGO
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PHOENIX CALIFORNIA TAX EXEMPT BONDS, INC.
MARKET AND PORTFOLIO REVIEW
Investment Environment
Interest rates continued to oscillate throughout most of this reporting
period, as the bond market appeared to be locked in a trading range. By late
summer, however, the consensus view on Wall Street turned increasingly more
bullish as signs of more moderate economic growth and benign inflation became
evident. These signs of a slowing economy allowed interest rates to fall (and
bond prices to rise) for the remainder of this reporting cycle. In total,
despite all the market gyrations, interest rates as measured by the bell
weather 30-year Treasury bond declined only 27 basis points during the last
six months and ended the period yielding 6.64%.
As measured by the latest employment figures, California's economy is now
growing faster than the nation. After a prolonged downturn during the early
1990s, the state's unemployment picture has improved, its housing market is
showing signs of recovery, and California's key industry segments are again
expanding. Although these latest economic reports are very encouraging, we
remain mindful that fiscal concerns still exist for a number of
municipalities within the state. In addition, as the federal government
increasingly delegates more responsibility for entitlement programs down to
the state and local levels, we believe this may lead to further budgetary
constraints for some issuers within this market.
Portfolio Review
Given this market environment, the Fund posted solid gains over this
latest reporting cycle. For the six-month period ended October 31, 1996,
class A shares provided a total return of 4.33% and class B shares returned
3.94%. These results lagged slightly behind the Lehman Brothers Municipal
Bond Index, which returned 4.54% over the same period. All of these returns
assume reinvestment of any distributions, but exclude the effect of sales
charges.
Over the last six months, lower-quality investment grade bonds, "A" to
"BBB" rating, continued to outperform "AAA" bonds. Despite this
underperformance in the high- quality sector, we still believe that the
ongoing fiscal problems of many California municipalities warrants a high-
quality portfolio. Additionally, credit quality spreads remain narrow, making
this an unfavorable environment to take municipal credit risk. As of October
31, 1996, 72% of the portfolio's assets were rated "AAA", with maturities
ranging from intermediate to long.
Outlook
Moving forward, we will continue to focus on quality assets for the
portfolio, particularly given the narrow credit spreads currently available
in the market. Our current strategy is to emphasize high-quality "essential
service" credits which can benefit from California's renewed economic
strength and also provide some protection from the state's ongoing fiscal
dilemmas. On the tax-reform front, the election results have calmed investor
fears regarding any radical tax reform as Bill Clinton was re-elected to
another term and the Republicans maintained control of the Congress. Overall,
our outlook for this segment of the fixed- income market is positive, given
the favorable combination of moderate municipal issuance and relatively low
inflation.
1
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Phoenix California Tax Exempt Bonds, Inc.
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INVESTMENTS AT OCTOBER 31, 1996
(Unaudited)
<TABLE>
<CAPTION>
STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
----------- --------- ---------------
<S> <C> <C> <C>
MUNICIPAL TAX-EXEMPT BONDS--94.5%
Certificates of Participation/Lease
Revenue--7.2%
California Public Works Lease
Revenue
5.25%, '06 AAA $ 1,640 $ 1,666,109
California State Public Works
5.375%, '19 AAA 2,500 2,383,925
California Statewide Community
4.90%, '09 AAA 2,200 2,091,914
Orange County Recovery 5.80%,
'16 AAA 1,500 1,506,825
San Mateo County Revenue
5.125%, '18 AAA 1,000 941,890
------------
Total Certificates of Participation/
Lease Revenue 8,590,663
------------
General Obligations--5.2%
California State G.O.
5.50%, '08 AAA 1,500 1,545,510
Central School District G.O.
7.05%, '16 A(b) 1,000 1,092,270
Pomona School District G.O.
Series C 5.60%, '12 AAA 1,500 1,524,735
Puerto Rico G.O. 5.375%, '06 AAA(b) 2,000 2,034,300
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Total General Obligations 6,196,815
------------
Healthcare--5.7%
California Health Facilities
7.30%, '20 A+ 1,400 1,499,204
California Health Facilities
6.25%, '22 A+ 1,500 1,526,250
Grass Valley Hospital
7.25%, '19 A+ 2,000 2,108,640
San Bernardino School Health
Care 7%, '21 AA 1,500 1,680,195
------------
Total Healthcare 6,814,289
------------
Housing Revenue--3.5%
California Housing Financing
Agency 7.25%, '17 AA- 785 822,044
California Housing Financing
Agency 7.75%, '17 AA- 400 422,004
California Housing Financing
Agency Series C 7.20%, '17 AA- 805 834,495
L.A. Community Redevelopment
Agency Series A 6.55%, '27 AAA 2,000 2,062,680
------------
Total Housing Revenue 4,141,223
------------
Pre-Refunded Revenue--28.0%
Covina Redevelopment Agency
8.80%, '08 NR 1,200 1,419,864
Hayward Hospital Revenue (St.
Rose Hosp.) 10%, '04 AAA 510 605,431
Huntington Park Redevelopment
Agency 8%, '19 AAA 2,400 3,119,040
Los Angeles Harbor Department
7.60%, '18 AAA 1,000 1,210,390
Northern California Hydro
Electric 7.50%, '23 AAA 195 237,929
Orange County Water District
COP 7%, '15 AAA 1,000 1,110,160
Pasadena COP 6.75%, '15 AAA(b) 2,000 2,201,520
Puerto Rico Aqueduct 7%, '19 AAA 1,500 1,601,880
Puerto Rico Electric Power 7%,
'21 BBB+ 2,500 2,811,575
Puerto Rico Highway Authority
Series T 6.625%, '18 AAA 200 223,330
Puerto Rico Highway Revenue
Series T 6.625%, '18 A 800 893,320
Puerto Rico Public Buildings
7%, '19 AAA 500 531,615
Puerto Rico Public Buildings
Series L 6.875%, '21 AAA 3,170 3,578,962
Redlands COP Series C
7%, '22 AAA 1,000 1,116,650
Riverside County 8.625%, '16 AAA 700 913,437
Riverside County 7.80%, '21 AAA 4,000 4,942,720
Riverside Public Financing
Authority 7.80%, '08 AAA 1,000 1,030,100
San Bernardino COP Series B 7%,
'28 AAA 2,200 2,477,860
San Gabriel Valley Schools
Financing 7.20%, '19 NR 1,200 1,310,964
Torrance Hospital COP
7.10%, '15 AAA 1,780 1,958,908
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Total Pre-Refunded Revenue 33,295,655
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See Notes to Financial Statements.
2
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Phoenix California Tax Exempt Bonds, Inc.
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STANDARD PAR
& POOR'S VALUE
RATING (000) VALUE
----------- --------- ---------------
Tax Revenue--11.3%
Culver City Redevelopment
Agency 4.60%, '20 AAA $ 4,500 $ 3,809,790
L.A. County Sales Tax 7%, '19 AA- 2,500 2,671,675
L.A. County Transit Authority
Series A 5%, '21 AAA 3,750 3,385,912
San Francisco Redevelopment
Agency 4.75%, '18 AAA 1,100 965,492
San Francisco Redevelopment
Agency 5.50%, '18 A- 1,500 1,419,900
San Pablo Redevelopment Agency
5%, '13 AAA 1,250 1,175,788
-----------
Total Tax Revenue 13,428,557
-----------
Transportation Revenue--4.8%
Los Angeles County Revenue
Series B 5.25%, '23 AAA 3,000 2,800,440
San Diego Transportation Series
A 4.75%, '08 AAA 2,000 1,915,700
San Francisco Airport Revenue
6.25%, '10 AAA 1,000 1,055,120
-----------
Total Transportation Revenue 5,771,260
-----------
Utility Revenue--28.8%
California Department of Water
5%, '15 AA 1,375 1,275,753
California State Water Series L
5.75%, '19 AA 4,000 3,949,480
Chino Basin, California 5.90%,
'11 AAA 2,000 2,102,200
Contra Costa Water District
Series G 5.75%, '14 AAA 3,100 3,135,619
Delta Diablo Sanitation
District, CA 0%, '16 AAA 1,070 333,005
Irvine Ranch Water District
7.80%, '08 A+ 1,500 1,561,770
Irvine Ranch Water District
8.25%, '23 A+ 2,000 2,126,900
L.A. Wastewater Series D
4.70%, '17 AAA 7,000 6,117,300
MSR Public Power Agency 6.75%,
'20 AAA 1,500 1,748,835
Puerto Rico Electric Power
Authority Series N 6%, '10 AAA(b) 1,500 1,512,270
Sacramento Cogeneration Project
6.375%, '10 BBB- 1,000 1,024,690
Sacramento Flood Control Agency
5.375%, '15 AAA 2,370 2,310,584
Sacramento Municipal Utility
District Revenue 5.75%, '11 AAA 3,500 3,575,285
Sacramento Utility District
Electric Series G 4.75%, '21 AAA 1,000 863,780
Southern California Public
Power Authority 5.50%, '20 A 915 875,280
Southern California Public
Power Series A 4.875%, '20 AAA 2,000 1,775,440
-----------
Total Utility Revenue 34,288,191
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TOTAL MUNICIPAL TAX-EXEMPT BONDS
(Identified cost $106,289,099) 112,526,653
-----------
SHORT-TERM OBLIGATIONS--2.9%
Commercial Paper--2.9%
CXC, Inc. 5.70%, 11-1-96 A-1+ 3,430 3,430,000
-----------
TOTAL SHORT-TERM OBLIGATIONS
(Identified cost $3,430,000) 3,430,000
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TOTAL INVESTMENTS--97.4%
(Identified cost $109,719,099) 115,956,653(a)
Cash and receivables, less liabilities--2.6% 3,113,001
-----------
NET ASSETS--100.0% $119,069,654
===========
</TABLE>
(a) Federal Income Tax Information: Net unrealized appreciation of
investment securities is comprised of gross appreciation of $6,768,413
and gross depreciation of $530,859 for income tax purposes. At October
31, 1996, the aggregate cost of securities for federal income tax
purposes was $109,719,099.
(b) As rated by Moody's, Duff and Phelps or Fitch.
See Notes to Financial Statements.
3
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Phoenix California Tax Exempt Bonds, Inc.
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STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1996
(Unaudited)
<TABLE>
<CAPTION>
<S> <C>
Assets
Investment securities at value
(Identified cost $109,719,099) $115,956,653
Receivables
Fund shares sold 1,199,239
Interest 2,197,480
-------------
Total assets 119,353,372
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Liabilities
Payables
Custodian 468
Fund shares repurchased 5,827
Dividend distributions 106,820
Investment advisory fee 44,219
Distribution fee 25,414
Directors' fee 9,331
Transfer agent fee 7,486
Financial agent fee 2,948
Accrued expenses 81,205
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Total liabilities 283,718
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Net Assets $119,069,654
=============
Net Assets Consist of:
Capital paid in on shares of capital stock $112,243,195
Undistributed net investment loss (91,746)
Accumulated net realized gain 680,651
Net unrealized appreciation 6,237,554
-------------
Net Assets $119,069,654
=============
Class A
Shares of capital stock outstanding, $.01 par value,
250,000,000 shares authorized
(Net Assets $117,637,151) 9,062,735
Net asset value per share $12.98
Offering price per share
$12.98/(1-4.75%) $13.63
Class B
Shares of capital stock outstanding, $.01 par value,
250,000,000 shares authorized
(Net Assets $1,432,503) 110,349
Net asset value and offering price per share $12.98
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED 0CTOBER 31, 1996
(Unaudited)
<TABLE>
<CAPTION>
<S> <C>
Investment Income
Interest $3,580,794
-----------
Total investment income 3,580,794
-----------
Expenses
Investment advisory fee 264,557
Distribution fee--Class A 145,350
Distribution fee--Class B 6,505
Financial agent fee 17,637
Transfer agent 40,000
Professional 15,550
Registration 15,060
Printing 14,000
Directors 7,854
Custodian 6,400
Miscellaneous 3,923
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Total expenses 536,836
-----------
Net investment income 3,043,958
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Net Realized and Unrealized Gain (Loss) on Investments
Net realized gain on securities 533,477
Net realized gain on futures contracts 383,554
Net change in unrealized appreciation (depreciation)
on investments 1,184,180
-----------
Net gain on investments 2,101,211
-----------
Net increase in net assets resulting from operations $5,145,169
===========
</TABLE>
See Notes to Financial Statements.
4
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Phoenix California Tax Exempt Bonds, Inc.
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STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
October 31, Year
1996 Ended
(Unaudited) April 30, 1996
-------------------------------
<S> <C> <C>
From Operations
Net investment income $ 3,043,958 $ 6,205,857
Net realized gain 917,031 1,098,320
Net change in unrealized appreciation (depreciation) 1,184,180 756,545
----------- -----------
Increase in net assets resulting from operations 5,145,169 8,060,722
----------- -----------
From Distributions to Shareholders
Net investment income--Class A (3,028,454) (6,135,672)
Net investment income--Class B (28,928) (36,045)
Net realized gains--Class A -- (288,116)
Net realized gains--Class B -- (1,693)
Distributions in excess of net investment income--Class
A -- (77,865)
Distributions in excess of net investment income--Class
B -- (457)
Distributions in excess of accumulated net realized
gains--Class A -- (235,000)
Distributions in excess of accumulated net realized
gains--Class B -- (1,380)
----------- -----------
Decrease in net assets from distributions to
shareholders (3,057,382) (6,776,228)
----------- -----------
From Share Transactions
Class A
Proceeds from sales of shares (3,620,113 and 2,203,421
shares, respectively) 46,351,773 28,531,594
Net asset value of shares issued from reinvestment of
distributions
(99,321 and 218,807 shares, respectively) 1,275,410 2,842,822
Cost of shares repurchased (3,568,062 and 2,801,630
shares, respectively) (45,862,647) (36,234,994)
----------- -----------
Total 1,764,536 (4,860,578)
----------- -----------
Class B
Proceeds from sales of shares (29,359 and 73,939 shares,
respectively) 378,262 962,800
Net asset value of shares issued from reinvestment of
distributions (1,151 and 1,751, respectively) 14,764 22,780
Cost of shares repurchased (18,652 and 13,644 shares,
respectively) (240,080) (175,468)
----------- -----------
Total 152,946 810,112
----------- -----------
Increase (decrease) in net assets from share
transactions 1,917,482 (4,050,466)
----------- -----------
Net increase (decrease) in net assets 4,005,269 (2,765,972)
Net Assets
Beginning of period 115,064,385 117,830,357
----------- -----------
End of period (including undistributed net investment
loss and distributions in excess of net investment
income of ($91,746) and ($78,322), respectively) $119,069,654 $115,064,385
============ ============
</TABLE>
See Notes to Financial Statements.
5
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Phoenix California Tax Exempt Bonds, Inc.
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FINANCIAL HIGHLIGHTS
(Selected data for a share outstanding throughout the indicated period)
<TABLE>
<CAPTION>
Class A
-----------------------------------------------------------------------
Six Months
Ended
10/31/96 Year Ended April 30,
(Unaudited) 1996 1995 1994 1993 1992
------------ ----------- ---------------------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $12.77 $12.63 $13.03 $13.64 $13.20 $13.07
Income from investment operations
Net investment income 0.33 0.67 0.71 0.80 0.81 0.87
Net realized and unrealized gain
(loss) 0.22 0.20 0.05 (0.53) 0.51 0.24
--------- --------- --------- --------- --------- ---------
Total from investment operations 0.55 0.87 0.76 0.27 1.32 1.11
--------- --------- --------- --------- --------- ---------
Less distributions
Dividends from net investment
income (0.34) (0.67) (0.76) (0.76) (0.80) (0.88)
Distributions in excess of net
investment income -- (0.01) -- -- -- --
Distributions from net realized
gains -- (0.03) (0.31) (0.12) (0.08) (0.10)
Distributions in excess of
accumulated net realized gains -- (0.02) (0.09) -- -- --
--------- --------- --------- --------- --------- ---------
Total distributions (0.34) (0.73) (1.16) (0.88) (0.88) (0.98)
--------- --------- --------- --------- --------- ---------
Change in net asset value 0.21 0.14 (0.40) (0.61) 0.44 0.13
--------- --------- --------- --------- --------- ---------
Net asset value, end of period $12.98 $12.77 $12.63 $13.03 $13.64 $13.20
========= ========= ========= ========= ========= =========
Total return (1) 4.33% (3) 6.92% 6.34% 1.80% 10.38% 8.68%
Ratios/supplemental data:
Net assets, end of period
(thousands) $117,637 $113,806 $117,370 $131,365 $147,760 $139,118
Ratio to average net assets of:
Operating expenses 0.90% (2) 0.99% 0.93% 0.85% 0.90% 0.68%
Net investment income 5.19% (2) 5.15% 5.63% 5.82% 6.00% 6.55%
Portfolio turnover 10% (3) 20% 51% 25% 25% 33%
</TABLE>
<TABLE>
<CAPTION>
Class B
------------------------------------
Six Months From
Ended Year Inception
10/31/96 Ended 7/26/94 to
(Unaudited) 4/30/96 4/30/95
------------ --------- ------------
<S> <C> <C> <C>
Net asset value, beginning of period $12.77 $12.63 $13.04
Income from investment operations
Net investment income 0.29 0.56 (4) 0.48
Net realized and unrealized gain 0.21 0.20 0.01
--------- --------- ---------
Total from investment operations 0.50 0.76 0.49
--------- --------- ---------
Less distributions
Dividends from net investment income (0.29) (0.56) (0.50)
Distributions in excess of net investment income -- (0.01) --
Distributions from net realized gains -- (0.03) (0.31)
Distributions in excess of accumulated net realized gains -- (0.02) (0.09)
--------- --------- ---------
Total distributions (0.29) (0.62) (0.90)
--------- --------- ---------
Change in net asset value 0.21 0.14 (0.41)
--------- --------- ---------
Net asset value, end of period $12.98 $12.77 $12.63
========= ========= =========
Total return (1) 3.94% (3) 6.10% 4.10% (3)
Ratios/supplemental data:
Net assets, end of period (thousands) $1,433 $1,258 $460
Ratio to average net assets of:
Operating expenses 1.65% (2) 1.78% 1.55% (2)
Net investment income 4.43% (2) 4.32% 4.90% (2)
Portfolio turnover 10% (3) 20% 51%
</TABLE>
(1) Maximum sales charge is not reflected in total return calculation.
(2) Annualized
(3) Not annualized
(4) Computed using average shares outstanding.
See Notes to Financial Statements.
6
<PAGE>
PHOENIX CALIFORNIA TAX EXEMPT BONDS, INC.
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 1996 (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's investment objective is to obtain a high level of current income
exempt from California state and local income taxes, as well as Federal
income tax, consistent with preservation of capital. 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. 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, liabilities, revenues and
expenses. Actual results could differ from those estimates.
A. Security valuation:
Debt securities are valued on the basis of broker quotations or valuations
provided by a pricing service which utilizes information with respect to
recent sales, market transactions in comparable securities, quotations from
dealers, and various relationships between securities in determining value.
Short-term investments having a remaining maturity of 60 days or less 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 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.
E. Futures contracts:
A futures contract is an agreement between two parties to buy and sell a
security at a set price on a future date. The Fund may enter into financial
futures contracts as a hedge against anticipated changes in the market value
of the portfolio securities. Upon entering into a futures contract, the Fund
is required to pledge to the broker an amount of cash and/or securities equal
to the "initial margin" requirements of the futures exchange on which the
contract is traded. Pursuant to the contract, the Fund agrees to receive from
or pay to the broker an amount of cash equal to the daily fluctuation in
value of the contract. Such receipts or payments are known as variation
margin and are recorded by the Fund as unrealized gains or losses. When the
contract is closed, the Fund records a realized gain or loss equal to the
difference between the value of the contract at the time it was opened and
the value at the time it was closed. The potential risk to the Fund is that
the change in value of the futures contract may not correspond to the change
in value of the hedged instruments.
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 majority-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 majority-owned subsidiary of PHL, has advised the Fund
that it retained net selling commissions of $6,364 for Class A shares and
deferred sales charges of $6,133
7
<PAGE>
PHOENIX CALIFORNIA TAX EXEMPT BONDS, INC.
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 1996 (Unaudited) (Continued)
for Class B shares for the six months ended October 31, 1996. 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, 1996, $14,248 was earned by the
Distributor and $137,607 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, 1996, transfer agent fees were $40,000 of which
PEPCO retained $13,078, which is net of fees paid to State Street.
At October 31, 1996, PHL and affiliates held 197 Class A shares and 9,241
Class B shares of the Fund with a combined value of $122,507.
3. PURCHASE AND SALE OF SECURITIES
Purchases and sales of securities, excluding short-term securities and
futures, for the six months ended October 31, 1996, aggregated $11,005,942
and $14,818,918, respectively. There were no purchases or sales of long-term
U.S. Government securities.
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.
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
Francis E. Jeffries
Leroy Keith, Jr.
Philip R. McLoughlin
Everett L. Morris
James M. Oates
Calvin J. Pedersen
Philip R. Reynolds
Herbert Roth, Jr.
Richard E. Segerson
Lowell P. Weicker, Jr.
Officers
Philip R. McLoughlin, President
Michael E. Haylon, Executive Vice President
David R. Pepin, Executive Vice President
Timothy M. Heaney, 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
<PAGE>
Phoenix California Tax Exempt Bonds, Inc.
P.O. Box 2200
Enfield, CT 06083-2200
PHOENIX DUFF & PHELPS LOGO
PDP 680 (12/96)
Bulk Rate Mail
U.S. Postage
PAID
Springfield, MA
Permit No. 444
DALBAR Logo
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