MESSAGE
FROM THE CHAIRMAN
Table of Contents Page
Message from the Chairman 1
Manager's Discussion 4
Fund Reports
Franklin California Insured
Tax-Free Income Fund 8
Franklin California
Intermediate-Term Tax-Free
Income Fund 14
Franklin California
Tax-Exempt Money Fund 20
Statement of Investments 22
Financial Statements 57
Notes to Financial Statements 60
Report of Independent Auditors 67
August 15, 1995
Fellow Shareholders:
It's a pleasure to bring you the annual report of the Franklin California
Tax-Free Trust for the fiscal year ended June 30, 1995.
Calendar year 1994 was one of the worst years for fixed-income securities. In
fact, the 20-year U.S. Treasury bond recorded its poorest performance since
1967.1 Following this disappointing year, 1995 to date has been a welcome
change. Stock and bond markets enjoyed strong performance through the first six
months of the year. In February, the Dow Jones Industrial Average(R) broke the
4,000 mark for the first time, and finished the period above 4,500. The bond
market, as measured by the Lehman Brothers Aggregate Bond Index, rose 7.69% to
$104.02 from $96.59 on December 31, 1994.
Of more importance to shareholders of the Franklin California Tax-Free Trust is
the recent strength of the municipal bond market. Although the rally was
sidetracked in early December by the municipal bankruptcy filing of Orange
County, the municipal market has continued to keep pace with the strength in the
U.S. government market. Through June 30, 1995, municipal bond prices, as
measured by the Bond Buyer 40 Index, had risen 2.11% to $98.19 from $96.16 at
the beginning of 1995. Of course, there's no guarantee that these markets will
continue to rise as they have recently. In fact, debate regarding a national
flat tax has been a concern for the municipal market.
There has been a tremendous amount of press discussing various tax reform
issues, including the flat tax proposal, a consumption tax, a national sales
tax, and a "Super IRA." Each of these proposals pose a variety of underlying
questions -- Will there be any allowed deductions? Will I lose the benefit of
investing in tax-free municipal bonds? As you can imagine, a number of details
need to be fully considered. Such news coverage has understandably caused some
concern among investors; however, it is probably too early to draw clear-cut
conclusions on how any of the proposed tax reform plans could impact the
municipal bond market. Every administration has its own tax proposals. It is
management's opinion that tax-free investing through the investment in municipal
bonds will continue to be an attractive and economic means of raising funds for
the state and local governments. We will continue to monitor this situation.
As you know, markets experience both ups and downs, which is a normal part of
investing. That's why we've always encouraged our shareholders to focus on their
long-term investment goals. History has shown that, over the long term, stocks
and bonds have delivered impressive results.2 By concentrating on long-term
investment goals, you need not be unduly concerned with short-term market
fluctuations.
You can also help minimize the effects of market fluctuations by diversifying
your investments. Mutual funds offer a level of diversification that would be
almost impossible for individual investors to achieve on their own. Mutual
funds also provide full-time, professional management, and Franklin's Municipal
Bond Research Department is one of the largest in the industry.3 Our analysts
frequently make site visits to obtain invaluable first-hand information about
issuers and specific municipal projects. If you have any questions, we would
welcome a chance to answer them.
As always, we appreciate your trust and support, and look forward to serving you
in the years to come.
Sincerely,
Charles B. Johnson
Chairman
1. Source: Ibbotson Associates. Based on one-year total returns of long-term
government bonds from January 1926 to December 1994.
2. Past performance cannot guarantee future results.
3. Source: Research and Ratings Review, Vol.II. Issue 8, November 14, 1994.
Franklin's Municipal research team ranks second out of 1,000 investment advisory
firms, in terms of municipal bond analysts, in a survey by TMS Holdings, Inc.
MANAGER'S DISCUSSION
The Franklin California Tax-Free Trust's fiscal year ending June 30, 1995, was
one of contrasts. During the first half of the year, bond prices fell
dramatically in the face of rapidly rising interest rates. By December of '94,
however, economic growth had slowed considerably, inflation remained subdued,
and the municipal bond market headed into a much welcomed rally. The recovery
was disrupted by the bankruptcy of Orange County, California in early December.
In spite of this, municipal bond prices continued their recovery and by June 30,
1995, had risen 6.15% to $100.34 since December 31, 1994.1
The past four years have challenged California's economic resiliency as cyclical
and structural problems have been addressed. The national recession severely
affected the state, and its effects linger. As cold-war tensions subsided, the
state's enormous military industry lost 700,000 jobs -- though it is estimated
that 240,000 of these jobs have been restored. Likewise, military base closures
in Northern and Southern California have impacted both state and local
economies.
California's social welfare and entitlement programs have strained finances as
caseload growth has exceeded both population and resource availability. In
addition, the state has been affected by numerous natural catastrophes,
including earthquakes, fire, drought and floods, further straining state
resources.
In response to economic pressures, California increased personal and corporate
income tax rates in 1991, implemented property tax transfers away from local
governments to fund education, increased student fees for higher education, and
realigned welfare and social programs from the state to the county levels. We
believe that these actions will work to help stabilize the state's economy.
In managing our tax-free funds, we seek to provide our shareholders with as high
a level of current income as is consistent with the preservation of capital that
is exempt from federal income taxes and, in most cases, state and personal
income taxes as well.2 To achieve this goal, we generally purchase current
coupon bonds at a slight discount. We also practice a "buy and hold" strategy,
electing to retain higher coupon bonds (even when they trade at a premium) for
the higher income they provide, thus helping us live up to our funds'
objectives. This strategy has a number of beneficial side effects, including
fairly low portfolio turnover rates and lower expenses. This approach also tends
to help protect the funds from extreme price volatility. Since bonds that trade
at a premium are generally slower to react to market fluctuations, the large
percentage of such bonds in our funds helped to dampen the effects of 1994's
uncertain bond market.
In short, we believe our investment approach provides portfolios that pay a high
level of tax-free income while enjoying comparatively stable share prices.
The benefits of mutual fund investing became even more apparent during the
Orange County crisis. This event triggered declines throughout the municipal
market not only because bonds issued by Orange County were affected, but bonds
issued by municipalities that invested in the Orange County investment pool were
impacted. The problems in Orange County created ripples that were felt
throughout the municipal bond market.
The Orange County situation, while having dramatic short-term effects, has not
had a lasting impact on the funds in the Franklin California Tax-Free Trust. As
noted in the semi-annual report dated December 1994, the funds have maintained
very limited exposure to Orange County obligations. Of course, the bankruptcy
procedings are ongoing, and we will continue to closely monitor the situation.
We believe the coming months should be strong ones for the municipal bond market
as bond issuance has fallen dramatically in the face of higher interest rates
and voter reluctance to approve new projects. As a result, we expect the new
supply of municipal bonds to be roughly $130 to $140 billion in 1995 -- somewhat
less than last year, and significantly less than 1993, when municipal bond
issuance hit an all-time high. At the same time, there will be a record number
of bonds that will be redeemed or called in 1995, (approximately $185 billion)
which will return cash to investors that will need to be reinvested. This should
help increase demand for municipal bonds. While we expected 1994's reduced
supply to bode well for the municipal bond market, dramatic increases in
interest rates by the Federal Reserve Board overshadowed any positive effects of
a lower supply. Fortunately, long-term interest rates have declined in 1995, and
the slowing economy suggests that the Fed's aggressive campaign to restrict the
money supply is near its end. In fact, given the significant drop in the rate of
growth of the Gross Domestic Product (GDP) in the first quarter of 1995 (GDP was
2.1% compared to 5.1% for the last quarter of 1995), the Fed reduced its
short-term federal funds rate by a quarter of a percentage point to 5.75% from
6.00% on July 6, 1995.
Furthermore, we think yields from municipal securities are currently very
attractive relative to yields available from U.S. Treasuries and other
high-quality, taxable fixed-income securities. For instance, municipal bonds,
represented by the Bond Buyer 40 (an index of 40 municipal bonds) demonstrated a
yield of 6.28% on June 30, 1995. For investors in the maximum federal income tax
bracket of 39.6%, this tax-free yield equals a taxable yield of 10.39%, whereas
the average 30-year U.S. Treasury bond offered a taxable yield of 6.63% on June
30, 1995.3 Given their relative value and the reduced supply available, we
expect municipal bonds to perform well in the coming year.
Sincerely,
Thomas J. Kenny
Senior Vice President --
Director, Franklin Municipal Bond Department
1. Source: Lehman Brothers Municipal Bond Index.
2. For investors subject to federal or state alternative minimum tax, all or a
portion of these dividends may be subject to such tax, depending on the fund.
Distributions of capital gains and of ordinary income from accrued market
discount, if any, are generally taxable.
3. Source: Micropal
FRANKLIN CALIFORNIA INSURED TAX-FREE INCOME FUND
Fund Objective
To provide high current income exempt from regular federal and California state
personal income taxes consistent with prudent investment management by investing
primarily in a diversified portfolio of insured California municipal
securities.*+
As municipal bond yields rose in 1994, we took advantage of the opportunity to
sell off lower-yielding purchases made in the previous two years, and reinvest
the proceeds in bonds with better coupons and maturities. This benefited your
fund in two ways. First, it improved the income generated by the fund. Second,
higher coupon bonds exhibited greater price stability than those with lower
coupons, helping to decrease the fund's volatility.
The insured bonds in your fund's portfolio are insured by private municipal bond
insurance companies as to the scheduled payment of principal and interest on the
portfolio's securities.+ Because of this insurance, the fund continues to enjoy
a "AAAf" rating -- the highest mutual fund rating possible -- from Standard &
Poor's Corporation. The rating reflects Standard & Poor's assessment of the
overall credit quality of the fund's portfolio, based primarily on the fund's
stated investment objectives and policies. It considers, for example, not only
the credit quality of portfolio investments, but the experience and stability of
management. The rating does not reflect the yield or the market price of the
fund's shares, nor does it imply approval by Standard & Poor's and is subject to
change.
Franklin maintains a very conservative approach in seeking to achieve the fund's
objectives. We strive to maximize shareholders' current tax-free income, while
attempting to minimize risk.
Our strategy is simple: we purchase securities based on their income-producing
potential and avoid short-term trading to capture capital gains. In addition, we
also purchase bonds as close to par, or face value, as possible in the current
marketplace.
Broad diversification is another important management strategy. On June 30,
1995, the fund's 407 holdings were divided among a wide variety of cities,
counties and other municipalities state-wide. In addition, the table to the
right illustrates that the portfolio holdings were also diversified across
several market sectors.
As interest rates begin to work their way down -- as they have recently -- the
volume of new municipal bond issuance may pick up from pre-refunded issues as
borrowers take advantage of interest cost savings on their outstanding debt.
However, it is unlikely that this will approach the volume of nearly $300
billion that the market experienced in 1993. We expect that infrastructure
borrowings will begin to add to the primary market activity in 1996;
unfortunately, this will not be of much help in 1995.
Performance Summary
The Franklin California Insured Tax-Free Income Fund's Class I share price, as
measured by net asset value, increased to $11.95 on June 30, 1995, from $11.74
on June 30, 1994. The fund's Class II share price, as measured by net asset
value, was $11.88 on May 1, 1995, the Class II share inception date, and ended
the reporting period at $11.99 on June 30, 1995.
The fund continued to meet its primary investment objective of providing high
current income to its shareholders. For the one-year period ended June 30, 1995,
your fund's Class I shares paid monthly income distributions totaling 67.2 cents
($0.672) per share. The fund's Class II shares began distributing income on May
22, 1995, and provided shareholders with monthly income distributions totaling
8.6 cents ($0.086) per share.++ Dividends will vary based on the earnings of the
fund's portfolio, and past distributions are not necessarily predictive of
future results.
GRAPHIC MATERIAL 1 OMMITTED - SEE APPENDIX AT END OF DOCUMENT
GRAPHIC MATERIAL 2 OMMITTED - SEE APPENDIX AT END OF DOCUMENT
At the end of the reporting period, your fund's Class I shares distribution rate
was 5.38%, based on an annualization of the current monthly dividend of 5.6
cents ($0.056) per share and the maximum offering price of $12.48 on June 30,
1995. The Class II shares reported a distribution rate of 4.95%, based on the
annualization of the current monthly dividend of 5.0 cents ($0.050) per share
and the maximum offering price of $12.11 on June 30, 1995. These tax-free rates
are generally higher than the after-tax return on comparable taxable
investments. For example, if you are in the maximum combined federal and
California state personal income tax bracket of 46.2%, you would have to earn
10.00% from a taxable investment to match your fund's Class I shares tax-free
distribution rate, and 9.20% to match its Class II shares tax-free distribution
rate.
Since 1986, your fund's performance has exceeded the Consumer Price Index (CPI),
keeping your purchasing power well ahead of inflation -- a primary goal of any
investment. The fund, however, has slightly underperformed the unmanaged Lehman
Brothers Municipal Bond Index, as illustrated by the chart on page 12. Of
course, unmanaged market indices have inherent performance differentials in
comparison to any fund. The unmanaged market indices, such as the Lehman
Brothers Municipal Bond Index, don't pay commissions or market spreads to buy
and sell bonds. Further, they don't pay management fees to cover salaries to
security analysts or portfolio managers. And, unlike the unmanaged indices,
mutual funds are never 100% invested because of the need to have cash on hand to
redeem shares. In addition, the performance shown for the fund includes the
maximum initial sales charge, all fund expenses and account fees. If operating
expenses such as the fund's had been applied to the index, its (the index)
performance would have been lower. Please remember that an index is simply a
measure of performance and cannot be invested in directly.
Your fund's managers maintain a long-term investment perspective and we
encourage our shareholders to view their investments in a similar manner. While
the fund may experience volatility from time to time, we believe that its
performance will be rewarding over the long term. For example, as the table on
page 13 illustrates, the fund provided a total return of over 121% since its
inception in 1985.
GRAPHIC MATERIAL 3 OMMITTED - SEE APPENDIX AT END OF DOCUMENT
*This performance graph assumes an initial $10,000 investment and includes the
maximum 4.25% initial sales charge, all fund expenses and account fees. It also
assumes that your dividends and capital gains were reinvested at net asset
value. The Lehman Brothers Municipal Bond Index includes price appreciation or
depreciation as part of the original investment. Due to their recent inception,
Class II shares are not represented in the above illustration. Past performance
cannot guarantee future results.
Franklin California Insured Tax-Free Income Fund
Periods ended June 30, 1995
<TABLE>
<CAPTION>
Since
Inception
1-Year 5-Year (09/03/85)
Cumulative Total Return1
<S> <C> <C> <C> <C>
Class I Shares 7.80% 44.51% 121.24%
Average Annual Total Return2
Class I Shares 3.23% 6.70% 7.94%
Distribution Rate3 Taxable Equivalent Distribution Rate4
Class I Shares 5.38% Class I Shares10.00%
Class II Shares 4.95% Class II Shares9.20%
30-Day Standardized Yield5 Taxable Equivalent Yield4
Class I Shares 4.71% Class I Shares8.75%
Class II Shares 4.31% Class II Shares8.01%
</TABLE>
1. Cumulative total return measures the change in value of an investment over
the periods indicated and does not include the maximum 4.25% initial sales
charge for Class I shares. See note below.
2. Average annual total return represents the average annual change in value of
an investment over the specified periods. The figures have been restated to
reflect the maximum 4.25% initial sales charge for Class I shares. See note
below.
3. Class I shares distribution rate is based on an annualization of the
fund's current 5.6 cent per share monthly dividend and the maximum offering
price of $12.48 on June 30, 1995. Class II shares distribution rate is based on
an annualization of the fund's current 5.0 cent per share monthly dividend and
the maximum offering price of $12.11 on June 30, 1995.
4. Taxable equivalent distribution rate and yield assume the 1995 maximum
combined federal and California state income tax bracket of 46.2%, based on the
39.6% federal income tax rate.
5. Yield, calculated as required by the SEC, is based on the earnings of the
fund's portfolio for the 30 days ended June 30, 1995.
Note: Prior to July 1, 1994, fund shares were offered at a lower initial sales
charge, with dividends reinvested at the public offering price. Thus, actual
total returns for purchasers of shares during that time would have been somewhat
different than noted above. Effective May 1, 1994, for Class I shares, the fund
eliminated the sales charge on reinvested dividends and implemented a plan of
distribution under Rule 12b-1, which will affect future performance. Class II
shares, which the fund began offering on May 1, 1995, are subject to different
fees and expenses, which will affect their performance. Class II shares are not
shown as they have not been available for a sufficient period of time. Please
see the prospectus for more details regarding Class I and Class II shares.
All total return calculations assume reinvestment of dividends and capital gains
at net asset value. Investment return and principal value will fluctuate with
market conditions, and you may have a gain or loss when you sell your shares.
Past performance cannot guarantee future results.
*For investors subject to the federal alternative minimum tax, a small portion
of these dividends may be subject to such tax. Distributions of capital gains
and of ordinary income from accrued market discount, if any, are generally
taxable.
+Fund shares are not insured by any U.S. government agency. Insurance
relates only to the payment of principal and interest on the portfolio's
securities. It does not eliminate market risks to the fund's share price or
insure the value of the shares. Terms of the insurance are more fully described
in the prospectus, and no representation is made as to any insurer's ability to
meet its commitments.
Franklin California Insured
Tax-Free Income Fund
Portfolio Breakdown on June 30, 1995
As a percentage of total net assets
% of total
Sector net assets
Pre-Refunded 23.0%
Certificates of Participation 17.0%
Tax Allocation Bonds 15.0%
Utilities 12.9%
Other Revenue 11.7%
Hospitals 6.0%
Education 4.5%
Housing 2.3%
General Obligations 2.3%
Mello-Roos Bonds 1.5%
Transportation 1.2%
Sales Tax Revenue 1.0%
Marks-Roos Bonds 0.9%
Industrial 0.4%
Special Assessment Bonds 0.3%
For a complete list of portfolio holdings, please see page 22 of this report.
++Assumes shares were purchased and held for the entire accrual period. Since
dividends accrue daily, your actual distributions will vary depending on the day
you purchased your shares and any account activity during the month. Income
distributions and total return calculations include all accrued income earned by
the fund during the reporting period.
FRANKLIN CALIFORNIA
INTERMEDIATE-TERM TAX-FREE INCOME FUND
Fund Objective
Seeks to provide shareholders with high current income exempt from regular
federal and California state personal income taxes consistent with the
preservation of capital. The fund invests primarily in a portfolio of municipal
bonds with an average weighted maturity (the time in which debt must be repaid)
between three and ten years.*
Since the fund's semi-annual report in December 1994, the economy has slowed and
fears of inflation have subsided. The five-year U.S. Treasury bond reached its
peak during the first half of the fund's fiscal year, rising to 7.83% on
December 31, 1994. After the start of 1995, short-term interest rates declined,
and by June 30, the five-year Treasury had dropped to 5.98%.**
The bond market decline of 1994 affected your fund's share price throughout the
first half of its fiscal year. During the first six months of the reporting
period, your fund's net asset value declined 35 cents per share to $9.85 on
December 31, 1994, after starting the reporting period at $10.20 per share. In
November, the Federal Reserve Board raised the federal funds rate for the sixth
time, and shortly thereafter, bond markets experienced a rally and the fund's
share price rebounded. This recovery resulted in a 5.38% gain in the fund's net
asset value over the second half of the reporting period.
GRAPHIC MATERIAL 4 OMMITTED - SEE APPENDIX AT END OF DOCUMENT
The fund finished the fiscal year at $10.38 on June 30, 1995, up from $10.20 on
June 30, 1994.
Trading activity was light during the fund's fiscal year. We took the
opportunity to sell our lower coupon bonds and used the proceeds to fund
purchases of higher coupon bonds. Be- cause of the lack of municipal issuance,
quality spreads among municipal bonds were much narrower. As a result, bonds
bought during the reporting period were higher coupons in the 8- to 12-year
maturity range, and were rated A to AAA in terms of credit quality. At the end
of the reporting period, the fund's average maturity was 8.4 years, down
slightly from 8.6 years on June 30, 1994.
We remain conservative in our management of the fund. When purchasing
securities, we evaluate each issue on an individual basis, favoring highly-rated
"essential service" bonds. These securities tend to have a more reliable income
stream as they are backed by dependable revenue generated from projects such as
utilities, transportation, water, and power and sewer works, to name a few. As a
result, these bonds tend to be less affected by budgetary and political changes,
and are believed to be very attractive in a municipal cost-cutting environment.
Like all mutual funds, however, the principal value of the fund's holdings, as
well as the price of its shares, will vary with market conditions.
Our outlook for the fund is positive. Signs of a slowing economy could result in
continued declines in interest rates, which should positively affect bond prices
and, thus, the fund's price per share.
Performance Summary
The Franklin California Intermediate-Term Tax-Free Income Fund's share price, as
measured by net asset value, increased to $10.38 on June 30, 1995, from $10.20
on June 30, 1994.
The fund continued to meet its investment objective of providing high current
income to its shareholders. For the one-year period ended June 30, 1995, your
fund paid monthly income distributions totaling 53.0 cents ($0.530) per share.+
Dividends will vary based on the earnings of the fund's portfolio, and past
distributions are not necessarily predictive of future results.
At the end of the reporting period, the fund's distribution rate was 4.97%,
based on an annualization of the current monthly dividend of 4.4 cents ($0.044)
per share and the maximum offering price of $10.62 on June 30, 1995. This
tax-free rate is generally higher than the after-tax return on a comparable
taxable investment. For example, if you are in the maximum combined federal and
California state income tax bracket of 46.2%, you would have to earn 9.24% from
a taxable investment to match your fund's tax-free distribution rate.
GRAPHIC MATERIAL 5 OMMITTED - SEE APPENDIX AT END OF DOCUMENT
Since 1993, the Franklin California Intermediate-Term Tax-Free Income Fund has
exceeded the Consumer Price Index (CPI), keeping your purchasing power well
ahead of inflation -- a primary goal of any investment. The fund, however, has
slightly lagged the performance of the unmanaged Lehman Brothers 10-Year
Municipal Bond Index, as illustrated by the chart to the right. Of course,
unmanaged market indices have inherent performance differentials in comparison
to any fund. The unmanaged market indices, such as the Lehman Brothers 10-Year
Municipal Bond Index, don't pay commissions or market spreads to buy and sell
bonds. They don't pay management fees to cover salaries to security analysts or
portfolio managers. And, unlike the unmanaged indices, mutual funds are never
100% invested because of the need to have cash on hand to redeem shares. In
addition, the performance shown for the fund includes the maximum initial sales
charge, all fund expenses and account fees. If operating expenses such as the
fund's had been applied to the index, its (the index) performance would have
been lower. Please remember that an index is simple a measure of performance and
cannot be invested in directly.
GRAPHIC MATERIAL 6 OMMITTED - SEE APPENDIX AT END OF DOCUMENT
*This performance graph assumes an initial $10,000 investment and includes the
maximum 2.25% initial sales charge, all fund expenses and account fees. It also
assumes that your dividends and capital gains were reinvested at net asset
value. The Lehman Brothers 10-Year Municipal Bond Index includes price
appreciation or depreciation as part of the original investment. Past
performance cannot guarantee future results.
Your fund's managers maintain a long-term investment perspective and we
encourage our shareholders to do the same. While the fund may experience
volatility from time to time, we believe that its performance will be rewarding
over the long term.
Franklin California Intermediate-Term
Tax-Free Income Fund
Period ended June 30, 1995
<TABLE>
<CAPTION>
Since
Inception
1-year (09/23/92)
<S> <C> <C> <C>
Comulative Total Return1 7.19% 18.00%
Average Annual Total Return2 4.83% 5.29%
Distribution Rate3 4.97%
Taxable Equivalent Distribution Rate4 9.24%
30-Day Standardized Yield5 5.05%
Taxable Equivalent Yield4 9.39%
</TABLE>
1. Cumulative total return measures the change in value of an investment over
the periods indicated and does not include the maximum 2.25% initial sales
charge stated in the prospectus. See note below.
2. Average annual total return represents the average annual change in value of
an investment over the specified periods. The figures have been restated to
reflect the maximum 2.25% initial sales charge. See note below.
3. Based on an annualization of the fund's current 4.4 cent per share monthly
dividend and the maximum offering price of $10.62 on June 30, 1995.
4. Taxable equivalent distribution rate and yield assume the 1995 maximum
combined federal and California state income tax bracket of 46.2%, based on the
39.6% federal income tax rate.
5. Yield, calculated as required by the SEC, is based on the earnings of the
fund's portfolio for the 30 days ended June 30, 1995.
Note: All total return calculations assume reinvestment of dividends and capital
gains at net asset value. Investment return and principal value will fluctuate
with market conditions, and you may have a gain or loss when you sell your
shares. Past performance is not predictive of future results.
The fund's manager has agreed in advance to waive
a portion of the management fees, which reduces operating expenses and increases
distribution rate, yield and total return to shareholders. Without this waiver,
the fund's distribution rate would have been lower, and yield for the period
would have been 4.62%. The fee waiver may be discontinued at any time upon
advance notice to the fund's Board of Trustees.
*For investors subject to the federal alternative minimum tax, a small portion
of these dividends may be subject to such tax. Distributions of capital gains
and of ordinary income from accrued market discount, if any, are generally
taxable.
**Source: Micropal
Franklin California Intermediate-Term
Tax-Free Income Fund
Portfolio Breakdown on June 30, 1995
As a percentage of total net assets
% of total
Sector net assets
Certificates of Participation 23.7%
Tax Allocation Bonds 20.5%
Other Revenue 16.7%
Education 9.3%
Utilities 6.0%
Housing 5.6%
Special Assessment Bonds 5.0%
Hospitals 4.7%
Marks-Roos Bonds 3.7%
Special Tax Revenue Bonds 2.7%
Health Care 1.3%
Transportation 0.4%
General Obligations 0.2%
Pre-Refunded 0.1%
Industrial 0.1%
For a complete list of portfolio holdings, please see page 40 of this report.
+Assumes shares were purchased and held for the entire accrual period. Since
dividends accrue daily, your actual distributions will vary depending on the day
you purchased your shares and any account activity during the month. Income
distributions and total return calculations include all accrued income earned by
the fund during the reporting period.
FRANKLIN CALIFORNIA TAX-EXEMPT MONEY FUND
Fund Objective:
Seeks to provide shareholders with a high level of current income exempt from
regular federal and California state personal income taxes by investing in a
diversified portfolio of short-term municipal debt securities issued in
California. The fund is managed to maintain a $1 share price.*
On June 30, 1995, the fund's seven-day effective yield, which assumes the
compounding of daily dividends, was 3.42%, and the fund's seven-day annualized
yield was 3.36%. This tax-free rate is generally higher than the after-tax
return on a comparable taxable investment. As the chart on page 9 illustrates,
if you are in the maximum combined federal and California state personal income
tax bracket of 46.2%, your fund's annualized yield was equivalent to a taxable
yield of 6.25%.
Throughout the fund's fiscal year, we kept its average maturity relatively short
-- in the range of 20 to 30 days. On June 30, 1995, the fund's average maturity
was 37 days, down from 44 days on June 30, 1994. By keeping the maturity short,
we were able to reinvest in securities offering higher rates, thereby increasing
the fund's yield. Additionally, we wanted to maintain the fund's liquidity as
short-term California securities markets were somewhat volatile due to Orange
County's financial situation. Recent judicial decisions emanating from the
Orange County case have moved us to adopt an even more stringent and
conservative criteria for our selections process of California obligations. At
this time, the fund does not own any Orange County obligations.
We believe the economy may be in for several quarters of slow growth as
production levels for high ticket items have been scaled back and factories work
to reduce the inventory that was built up during the first two quarters of 1995.
GRAPHIC MATERIAL 7 OMMITTED - SEE APPENDIX AT END OF DOCUMENT
In recognition of this, we have moved to a more neutral stance on the market and
have extended maturities slightly to protect the fund against a continued
deceleration in growth and a further decline in rates.
As a shareholder in the Franklin California Tax-Exempt Money Fund, you continue
to benefit from easy access to your money and high credit safety. You also enjoy
a variety of services, including free, unlimited check writing for amounts of
$100 or more, free wiring privileges and a 24-hour automated customer service
line.
Franklin California Tax-Exempt Money Fund
Periods ended June 30, 1995
Seven-day annualized yield 3.36%
Taxable equivalent yield2 6.25%
Seven-day effective yield1 3.42%
1. The seven-day effective yield assumes the compounding of daily dividends
2. Taxable equivalent yield assumes the 1995 maximum combined 46.2% federal and
California state income tax bracket, based on the maximum federal income tax
rate of 39.6%.
Annualized and effective yields are for the seven days ended June 30, 1995.
Yields reflect fluctuations in interest rates on portfolio investments, as well
as fund expenses. Yields should be viewed in terms of the current, low rate of
inflation -- just as high inflation usually results in higher yields, low
inflation often results in lower yields. Past performance does not guarantee
future results.
Please remember that an investment in the fund is neither insured nor guaranteed
by the U.S. government, and there can be no assurance that the fund will be able
to maintain a stable net asset value of $1.00 per share. *The fund will seek to
comply with all federal and state regulations regarding the payment of
tax-exempt income dividends. Investors subject to the federal alternative
minimum tax may find a small portion of the income dividends subject to such
tax. Distributions of capital gains and ordinary income from accrued market
discount, if any, are generally taxable. An investment in the fund is neither
insured nor guaranteed by the U.S. government. There is no assurance that the
$1.00 per share price will be maintained.
FRANKLIN CALIFORNIA TAX-FREE TRUST
Statement of Investments in Securities and Net Assets, June 30, 1995
<TABLE>
<CAPTION>
Face Value
Amount Franklin California Insured Tax-Free Income Fund (Note 1)
Long Term Investments 98.9%
Bonds 98.5%
<S> <C> <C>
$ 1,000,000 Alameda COP, Police Building and Equipment Financing Project, MBIA Insured,
7.25%, 08/01/15 ............................................................. $ 1,095,120
2,000,000 Alameda County COP, Municipal Custody Receipts, Series 1, BIG Insured,
Pre-Refunded, 7.25%, 12/01/07 ............................................... 2,292,520
1,000,000 Alameda County Water District Revenue COP, Water System Project,
FGIC Insured, 6.00%, 06/01/20 ............................................... 982,180
10,730,000 Alhambra COP, Police Facilities AD No. 91-1, AMBAC Insured, 6.75%, 09/01/23 .. 11,321,008
Anaheim COP,
3,240,000 Anaheim Memorial Hospital, AMBAC Insured, Pre-Refunded, 7.25%, 05/15/20 ... 3,676,882
3,000,000 Anaheim Public Improvement Corp., Refunding, BIG Insured, 6.70%, 08/01/08 . 3,069,660
1,000,000 Anaheim COP, AMBAC Insured, Pre-Refunded, 6.75%, 10/01/10 .................... 1,119,670
Anaheim Public Financing Authority Revenue, Refunding, Anaheim Electric Utility
Projects,
3,825,000 MBIA Insured, 5.60%, 10/01/16 ............................................. 3,581,309
2,000,000 MBIA Insured, 5.625%, 10/01/22 ............................................ 1,851,920
4,735,000 Antioch COP, Water Treatment Plant, MBIA Insured, Pre-Refunded, 7.875%,
07/01/14 .................................................................... 5,054,423
3,485,000 Apple Valley USD, COP, MBIA Insured, Pre-Refunded, 6.875%, 09/01/21 .......... 3,958,054
5,690,000 Arcata Joint Powers Financing Authority Revenue, Tax Allocation, Community
Development Project, Series A, AMBAC Insured, 6.00%, 08/01/23 ............... 5,583,711
3,080,000 Azusa Public Financing Authority Revenue, Refunding, Water System Acquisition
Project, Series A, FGIC Insured, 5.50%, 07/01/13 ............................ 2,899,019
4,150,000 Bakersfield Hospital Revenue, Refunding, Adventist Health System, MBIA Insured,
5.50%, 03/01/19 ............................................................. 3,844,851
Baldy Mesa Water District, COP, Water System Improvement Project,
760,000 AMBAC Insured, 6.40%, 08/01/17 ............................................ 776,378
1,170,000 AMBAC Insured, 6.45%, 08/01/24 ............................................ 1,195,167
2,000,000 Barstow RDA, Tax Allocation, Central Redevelopment Project, Series A,
MBIA Insured, 6.25%, 09/01/22 ............................................... 2,025,420
10,775,000 Bay Area Government Association, RDAR, Tax Allocation, Pool A2, CGIC Insured,
6.60%, 12/15/24 ............................................................. 11,222,486
2,995,000 Benicia COP, Refunding, Water System Project, AMBAC Insured, 6.125%, 11/01/17 3,001,439
5,900,000 Benicia USD, Series A, AMBAC Insured, 6.85%, 08/01/16 ........................ 6,255,711
Berkeley COP,
1,270,000 AMBAC Insured, 7.50%, 06/01/19 ............................................ 1,369,911
2,400,000 Civic Improvement Corp., AMBAC Insured, 7.00%, 06/01/15 ................... 2,488,440
Big Bear Lake Water Revenue, Refunding,
720,000 FGIC Insured, 6.25%, 04/01/12 ............................................. 734,954
400,000 FGIC Insured, 6.375%, 04/01/22 ............................................ 407,588
Brea Public Finance Authority Revenue, Tax Allocation, Redevelopment Project,
$ 1,520,000 Series A, MBIA Insured, 7.00%, 08/01/15 ................................... $ 1,650,690
1,550,000 Series A, MBIA Insured, 6.75%, 08/01/22 ................................... 1,629,469
12,500,000 Series A, MBIA Insured, 7.00%, 08/01/23 ................................... 13,541,125
3,480,000 Series A, MBIA Insured, Pre-Refunded, 7.00%, 08/01/15 ..................... 3,970,576
7,500,000 Series A, MBIA Insured, Pre-Refunded, 7.00%, 08/01/23 ..................... 8,557,275
2,155,000 Buellton USD, Series A, MBIA Insured, 6.375%, 07/01/17 ....................... 2,205,966
665,000 Burbank Waste Disposal Revenue, Series B, AMBAC Insured, 6.00%, 05/01/22 ..... 644,272
2,100,000 Calaveras County Water District, COP, AMBAC Insured, Pre-Refunded, 7.10%,
01/01/15 .................................................................... 2,353,953
3,950,000 Calaveras County Water District Revenue, Refunding, COP, Water and Sewer
System Improvement Project, AMBAC Insured, 6.00%, 05/01/16 .................. 3,885,062
California Educational Facilities Authority Revenue,
3,500,000 Pooled Facilities Program, MBIA Insured, 6.70%, 11/01/09 .................. 3,614,380
1,800,000 Pooled Facilities Program, MBIA Insured, 7.625%, 11/01/12 ................. 1,936,638
1,000,000 Pooled Facilities Program, MBIA Insured, 7.00%, 03/01/16 .................. 1,074,570
California Health Facilities Financing Authority Revenue,
3,000,000 Adventist Health Systems West, Series A, MBIA Insured, 7.00%, 03/01/13 .... 3,238,650
5,065,000 Adventist Health Systems West, Series B, MBIA Insured, 6.75%, 03/01/14 .... 5,313,843
3,900,000 Catholic Health Care, Series A, AMBAC Insured, Pre-Refunded, 7.00%,
07/01/06 ................................................................. 4,332,549
8,405,000 Catholic Health Care, Series A, AMBAC Insured, Pre-Refunded, 7.00%,
07/01/20 .................................................................... 9,337,199
7,605,000 Centinela Hospital Medical Center, MBIA Insured, 6.50%, 09/01/08 .......... 8,050,121
4,000,000 Marin General Hospital, Series A, CGIC Insured, 7.00%, 08/01/15 ........... 4,278,760
11,110,000 San Diego Hospital Association, MBIA Insured, 6.625%, 05/01/19 ............ 11,400,304
2,425,000 San Diego Hospital Association, Series A, MBIA Insured, 6.20%, 08/01/12 ... 2,443,236
4,850,000 San Diego Hospital Association, Series A, MBIA Insured, 6.20%, 08/01/20 ... 4,825,265
3,500,000 Scripps Memorial Hospital, Series A, MBIA Insured, 6.40%, 10/01/12 ........ 3,575,355
3,000,000 Sharp Temecula Hospital, MBIA Insured, 7.05%, 08/01/21 .................... 3,249,450
California HFAR,
1,315,000 Series A, MBIA Insured, 7.15%, 08/01/11 ................................... 1,389,021
4,100,000 Series A, MBIA Insured, 8.20%, 02/01/20 ................................... 4,333,577
3,450,000 Series A, MBIA Insured, 7.20%, 02/01/26 ................................... 3,584,205
70,000 Series B, MBIA Insured, 8.50%, 02/01/05 ................................... 74,045
1,815,000 Series B, MBIA Insured, 6.80%, 08/01/11 ................................... 1,880,340
285,000 Series B, MBIA Insured, 8.625%, 08/01/15 .................................. 292,228
9,610,000 California Public Capital Improvement Financing Authority Revenue, Pooled Projects,
Series B, BIG Insured, 8.10%, 03/01/18 ...................................... 10,519,971
California State GO,
$ 9,000,000 AMBAC Insured, 6.30%, 09/01/06 ............................................ $ 9,647,820
2,255,000 FGIC Insured, 6.00%, 08/01/19 ............................................. 2,218,221
3,500,000 FGIC Insured, 6.00%, 05/01/20 ............................................. 3,441,970
1,000,000 Various Purposes, MBIA Insured, 6.00%, 10/01/21 ........................... 983,030
California State Loan Purchase Authority Revenue, Loan Contract,
2,000,000 Series A, CGIC Insured, 7.75%, 10/01/08 ................................... 2,201,360
3,365,000 Series A, CGIC Insured, Pre-Refunded, 7.80%, 10/01/18 ..................... 3,781,015
3,000,000 California State Public Works, Board Lease Revenue, University of California Project,
Series A, AMBAC Insured, 6.40%, 12/01/16 .................................... 3,065,610
California State University and Colleges, Student Union Revenue,
1,310,000 Bakersfield, Series A, MBIA Insured, 6.30%, 11/01/22 ...................... 1,324,554
2,375,000 San Bernardino, Series B, MBIA Insured, 6.30%, 02/01/22 ................... 2,402,051
1,500,000 California State University, Fresno Revenue, Auxiliary Residence Student Project,
MBIA Insured, 6.25%, 02/01/17 ............................................... 1,512,600
2,000,000 California Statewide Communities Development Authority Revenue, COP,
Salk Institute, Connie Lee Insured, 6.20%, 07/01/24 ......................... 1,957,840
1,500,000 California Statewide Communities Development Corp., COP, San Diego State
University Foundation, Connie Lee Insured, 5.625%, 03/01/23 ................. 1,366,230
1,000,000 Cambria Community Services District Revenue, COP, Wastewater Treatment
System Upgrade, MBIA Insured, 6.90%, 11/01/24 ............................... 1,082,470
2,485,000 Carpinteria Sanitation District, Capital Facilities Revenue, FGIC Insured, 6.25%,
07/01/14 .................................................................... 2,538,875
2,000,000 Castaic Lake Water Agency, COP, Water System Improvement Project, MBIA
Insured, Pre-Refunded, 7.125%, 08/01/16 ..................................... 2,267,440
1,830,000 Central Basin Municipal Water District, COP, Century Reclamation Program, FGIC
Insured, Pre-Refunded, 6.875%, 02/01/16 ..................................... 2,037,485
Central Coast Water Authority Revenue, System Water Project, Regional Facilities,
2,500,000 AMBAC Insured, 6.50%, 10/01/14 ............................................ 2,598,125
4,650,000 AMBAC Insured, 6.60%, 10/01/22 ............................................ 4,882,035
3,035,000 Central School District, San Bernardino County, AMBAC Insured, 5.60%, 05/01/16 2,863,947
Central Union High School District, Imperial County,
890,000 Series A, AMBAC Insured, 5.50%, 08/01/17 .................................. 827,691
1,005,000 Series A, AMBAC Insured, 5.50%, 08/01/18 .................................. 933,153
5,000,000 Cerritos Public Financing Authority Revenue, Los Coyotes Redevelopment Project,
Series A, AMBAC Insured, 5.75%, 11/01/22 .................................... 4,774,550
815,000 Chico Public Financing Authority Revenue, Southeast Chico Redevelopment
Project, Series A, FGIC Insured, 6.625%, 04/01/21 ........................... 851,724
2,000,000 Chino Basin Regional Financing Authority Revenue, Refunding, Municipal Water
District, Sewer System Project, AMBAC Insured, 6.00%, 08/01/16 .............. 1,967,040
$ 3,590,000 Chino COP, RDA, Refunding, Water System Improvement Project, AMBAC
Insured, 6.20%, 09/01/18 .................................................... $ 3,623,208
6,250,000 Chino, Ontario, Upland Water Facilities Authority, COP, Refunding, Agua de Lejos
Projects, Series A, FGIC Insured, 6.75%, 10/01/11 ........................... 6,451,438
2,940,000 Chula Vista Elementary School District, COP, MBIA Insured, 6.60%, 08/01/16 ... 3,055,219
3,945,000 c Chula Vista Public Finance Authority, Local Agency Revenue, Series 1995-A,
CGIC Insured, 6.125%, 09/02/14 .............................................. 3,894,267
1,000,000 Clayton RDAR, Tax Allocation, Clayton Redevelopment Project, CGIC Insured,
5.55%, 08/01/20 ............................................................. 918,980
1,500,000 Coachella Valley Recreation and Park District, 1915 ACT, Refunding,
Reassessment District No. 94-1, MBIA Insured, 6.20%, 09/02/16 ............... 1,513,065
975,000 Concord RDA, Tax Allocation, Concord Center Redevelopment Project, AMBAC
Insured, Pre-Refunded, 8.875%, 07/01/16 ..................................... 1,040,432
Contra Costa County COP,
1,250,000 Buildings Acquisition Project, AMBAC Insured, 6.70%, 02/01/21 ............. 1,294,413
1,000,000 Public Facilities Corp., BIG Insured, 7.80%, 06/01/08 ..................... 1,104,450
2,385,000 Contra Costa Mosquito Abatement District, COP, Refunding, Public Improvements
Project, CGIC Insured, 6.25%, 02/01/06 ...................................... 2,486,386
5,425,000 Coronado CDA, Tax Allocation, Coronado Community Development Project,
MBIA Insured, 6.375%, 09/01/23 .............................................. 5,505,236
4,500,000 Covina COP, Housing Revenue, AMBAC Insured, 7.00%, 03/01/17 .................. 4,684,185
1,105,000 Delano USD, Series A, CGIC Insured, 6.10%, 05/01/17 .......................... 1,100,923
Desert Hot Springs RDA, Tax Allocation, Refunding, Redevelopment Project No. 1,
2,000,000 Series A, MBIA Insured, 5.350%, 09/01/14 .................................. 1,833,820
2,735,000 Series A, MBIA Insured, 5.375%, 09/01/19 .................................. 2,489,041
4,155,000 Dublin-San Ramon Services District, COP, AMBAC Insured, 7.00%, 12/01/20 ...... 4,486,320
East Bay MUD, Wastewater Treatment System Revenue,
1,000,000 AMBAC Insured, Pre-Refunded, 7.125%, 06/01/17 ............................. 1,130,360
2,000,000 AMBAC Insured, Pre-Refunded, 7.20%, 06/01/20 .............................. 2,267,240
East Bay MUD, Water System Revenue,
6,000,000 AMBAC Insured, 6.50%, 06/01/20 ............................................ 6,241,920
5,000,000 MBIA Insured, Pre-Refunded, 7.50%, 06/01/18 ............................... 5,733,450
1,000,000 Refunding, FGIC Insured, 6.00%, 06/01/20 .................................. 982,180
Eastern Municipal Water and Sewer District Revenue, COP,
1,000,000 FGIC Insured, Pre-Refunded, 6.75%, 07/01/08 ............................... 1,126,610
1,400,000 Refunding, Series A, FGIC Insured, 6.30%, 07/01/20 ........................ 1,413,944
1,000,000 El Centro COP, AMBAC Insured, 6.875%, 06/01/09 ............................... 1,040,980
5,960,000 El Cerrito RDA, Tax Allocation, Refunding, Redevelopment Project, Series A,
CGIC Insured, 6.80%, 07/01/19 ............................................... 6,249,537
$ 6,900,000 Eureka Public Financing Authority Revenue, Tax Allocation, Eureka Redevelopment
Project, CGIC Insured, Pre-Refunded, 7.40%, 11/01/12 ........................ $ 7,685,703
905,000 Fairfield COP, Refunding, Fairfield Utility Improvement Project, FGIC Insured,
7.35%, 04/01/15 ............................................................. 937,263
Fairfield Public Financing Authority Revenue,
2,000,000 Fairfield Redevelopment Project, Series C, CGIC Insured, 5.25%, 08/01/13 .. 1,817,340
5,000,000 Fairfield Redevelopment Project, Series C, CGIC Insured, 5.50%, 08/01/23 .. 4,574,000
4,750,000 Municipal Park, ID No. 1, FGIC Insured, 6.30%, 07/01/23 ................... 4,818,163
2,150,000 Refunding, Series B, MBIA Insured, 5.80%, 04/01/23 ........................ 2,066,774
1,265,000 Farmersville USD, Series A, AMBAC Insured, 5.70%, 07/01/18 ................... 1,205,874
2,525,000 Fillmore Public Financing Authority Revenue, Refunding, Central City
Redevelopment Project, Series A, AMBAC Insured, 5.75%, 10/01/16 ............. 2,437,736
Folsom Public Financing Authority Revenue, Refunding,
2,000,000 AMBAC Insured, 6.00%, 10/01/08 ............................................ 2,046,740
1,000,000 AMBAC Insured, 6.00%, 10/01/12 ............................................ 995,640
3,400,000 AMBAC Insured, 6.00%, 10/01/19 ............................................ 3,339,990
5,850,000 Fontana RDA, Tax Allocation, Refunding, Southwest Industrial Park Project, FGIC
Insured, 6.125%, 09/01/25 ................................................... 5,864,742
1,000,000 Fresno COP, City Hall Refinancing Project, AMBAC Insured, 6.25%, 08/01/19 .... 1,007,500
7,140,000 Fresno Water System Revenue Water Remediation Project, Series A, FGIC Insured,
5.875%, 06/01/20 ............................................................ 6,944,007
1,780,000 Fruitvale School District, Series B, MBIA Insured, 6.00%, 08/01/20 ........... 1,750,452
1,000,000 Fulton El Camino Recreational and Park District, COP, Series A, CGIC Insured,
Pre-Refunded, 6.375%, 12/01/11 .............................................. 1,097,420
1,000,000 Glendale Hospital Revenue, Refunding, Adventist Health, Series A, MBIA Insured,
6.75%, 03/01/13 ............................................................. 1,046,000
Glendale RDAR, Tax Allocation, Refunding, Central Glendale Redevelopment Project,
1,500,000 AMBAC Insured, 5.50%, 12/01/14 ............................................ 1,408,065
4,255,000 AMBAC Insured, 5.60%, 12/01/17 ............................................ 4,001,615
4,490,000 AMBAC Insured, 5.60%, 12/01/18 ............................................ 4,217,143
9,775,000 AMBAC Insured, 6.00%, 12/01/20 ............................................ 9,599,343
1,000,000 Goleta Water District Revenue, Refunding, COP, Goleta Reclamation Project,
FGIC Insured, 5.50%, 12/01/12 ............................................... 947,420
2,000,000 Grand Terrace CDA, COP, Refunding, Civic Center Project, AMBAC Insured,
Pre-Refunded, 7.25%, 03/01/14 ............................................... 2,082,940
2,000,000 Grossmont Hospital District Revenue, La Mesa, Series A, MBIA Insured,
Pre-Refunded, 8.00%, 11/15/17 ............................................... 2,208,380
1,000,000 Hercules COP, Refunding, Capital Improvement Projects, AMBAC Insured, 6.00%,
06/01/15 .................................................................... 989,620
$ 3,425,000 Hesperia Water District, COP, Refunding, Water Facilities Improvement Projects,
FGIC Insured, 7.15%, 06/01/26 ............................................... $ 3,782,741
5,875,000 Imperial Irrigation District, COP, Electric System Project, MBIA Insured, 6.00%,
11/01/15 .................................................................... 5,779,590
2,260,000 Industry, City of, Public Works Capital Improvement, FGIC Insured, Pre-Refunded,
6.80%, 07/01/15 ............................................................. 2,494,317
8,535,000 Kern County Board of Education, COP, Administration Building Financing Project,
MBIA Insured, 6.20%, 02/01/23 ............................................... 8,561,800
Kern County High School District,
1,535,000 CGIC Insured, 6.625%, 08/01/14 ............................................ 1,655,774
1,400,000 CGIC Insured, 6.625%, 08/01/15 ............................................ 1,504,636
3,460,000 King City Joint Union High School District, Series A, AMBAC Insured, 6.30%,
08/01/19 .................................................................... 3,518,785
3,080,000 La Mirada RDA, Industrial Commercial Redevelopment Project, Series A, MBIA
Insured, 6.60%, 08/15/21 .................................................... 3,187,215
Lake Arrowhead Community Services District, COP, Refunding,
7,600,000 FGIC Insured, 6.125%, 06/01/05 ............................................ 8,032,288
14,000,000 FGIC Insured, 6.50%, 06/01/15 ............................................. 14,564,480
4,000,000 San Bernardino County, Series C, BIG Insured, Pre-Refunded, 7.80%, 09/01/10 4,379,320
Lake Elsinore Public Financing Authority Revenue, Tax Allocation, Lake
Elsinore Redevelopment Project,
1,255,000 Series A, FGIC Insured, 6.25%, 02/01/19 .................................. 1,262,292
12,840,000 Series C, FGIC Insured, 6.625%, 02/01/17 .................................. 13,347,180
2,500,000 Lakewood RDA, Subordinate Tax Allocation, Refunding, Town Center
Redevelopment Project, CGIC Insured, Pre-Refunded, 8.50%, 09/01/13 .......... 2,771,125
3,000,000 Lakewood RDA, Tax Allocation, Refunding, Redevelopment Project No. 1, Series A,
CGIC Insured, 6.50%, 09/01/17 ............................................... 3,085,020
Lancaster RDA, Tax Allocation,
1,330,000 Combination Redevelopment Project Areas, Library, MBIA Insured, 5.75%,
08/01/23 ................................................................. 1,269,458
2,020,000 Combination Redevelopment Project, Fire Protection, MBIA Insured, 5.75%,
08/01/23 ................................................................. 1,928,050
11,245,000 Refunding, Lancaster Redevelopment Project No. 5, MBIA Insured, 6.85%,
02/01/19 ................................................................. 11,913,403
Lincoln RDA, Tax Allocation, Local Government Finance Authority Revenue,
1,500,000 AMBAC Insured, 9.00%, 08/01/11 ............................................ 1,679,385
480,000 AMBAC Insured, 9.00%, 08/01/12 ............................................ 537,403
2,425,000 Lincoln USD, CFD No. 1, AMBAC Insured, 6.90%, 09/01/21 ....................... 2,581,510
1,250,000 Livermore Public Building COP, AMBAC Insured, 7.05%, 04/01/17 ................ 1,333,150
$ 2,000,000 Local Government Finance Authority Revenue, Refunding, Bunker Hill Project,
AMBAC Insured, Pre-Refunded, 6.75%, 12/01/14 ................................ $ 2,219,180
8,800,000 Lodi COP, Refunding, Wastewater Treatment Project, AMBAC Insured, 6.70%,
08/01/26 .................................................................... 9,428,408
Loma Linda Hospital Revenue, Loma Linda University Medical Center Project,
1,910,000 Refunding, Series B, AMBAC Insured, 7.00%, 12/01/15 ...................... 2,047,520
2,500,000 Series B, MBIA Insured, Pre-Refunded, 7.00%, 12/01/10 ..................... 2,835,975
980,000 Series E, AMBAC Insured, 9.125%, 12/01/05 ................................. 1,018,847
2,500,000 Long Beach RDA, Refunding, Downtown Redevelopment Project, Series A, AMBAC
Insured, Pre-Refunded, 7.75%, 11/01/10 ...................................... 2,811,475
3,500,000 Los Angeles Convention and Exhibition Center, COP, AMBAC Insured,
Pre-Refunded, 7.00%, 08/15/21 ............................................... 3,950,905
3,000,000 Los Angeles County Capital Assets Leasing Corp., Leasehold Revenue, Refunding,
AMBAC Insured, 6.00%, 12/01/16 .............................................. 2,950,110
8,050,000 Los Angeles County COP, Correctional Facilities Project, MBIA Insured, 6.50%,
09/01/13 .................................................................... 8,332,475
5,825,000 Los Angeles County COP, Refunding, San Pedro Peninsula Hospital Project,
AMBAC Insured, 6.25%, 05/01/15............................................... 5,863,678
2,000,000 Los Angeles County Transit, Common Sales Tax Revenue, Proposition C, Series A,
MBIA Insured, 6.00%, 07/01/23 ............................................... 1,949,720
Los Angeles County Transportation Authority Revenue, Commission Sales Tax,
15,000,000 FGIC Insured, Pre-Refunded, 6.75%, 07/01/18 ............................... 16,899,150
1,440,000 Series A, FGIC Insured, Pre-Refunded, 6.75%, 07/01/20 ..................... 1,622,318
2,740,000 Series B, FGIC Insured, 6.50%, 07/01/13 ................................... 2,827,625
5,025,000 Series B, FGIC Insured, 6.50%, 07/01/15 ................................... 5,185,700
3,200,000 Los Angeles CRDA, Tax Allocation, Hollywood Redevelopment Project, Series B,
MBIA Insured, 6.10%, 07/01/22 .............................................. 3,183,168
Los Angeles Department of Water and Power, Electric Plant Revenue,
17,215,000 FGIC Insured, 6.125%, 01/15/33 ............................................ 17,052,146
2,000,000 MBIA Insured, 6.00%, 08/15/32 ............................................. 1,944,840
3,500,000 Refunding, FGIC Insured, 6.00%, 02/01/28 .................................. 3,407,110
Los Angeles Harbor Department Revenue,
3,790,000 Series B, AMBAC Insured, 6.60%, 08/01/14 .................................. 3,936,294
2,000,000 Series B, AMBAC Insured, 6.60%, 08/01/15 .................................. 2,071,560
Los Angeles Mortgage Revenue, Refunding,
2,000,000 Series I, MBIA Insured, 6.50%, 07/01/22 ................................... 2,025,500
4,735,000 Series II-E, MBIA Insured, 5.625%, 07/01/22 ............................... 4,362,924
Los Angeles Wastewater System Revenue,
$ 3,250,000 Series B, AMBAC Insured, 6.00%, 06/01/22 .................................. $ 3,148,698
1,000,000 FGIC Insured, 6.70%, 08/01/12 ............................................. 1,050,630
2,000,000 MBIA Insured, Pre-Refunded, 7.00%, 02/01/13 ............................... 2,211,200
2,000,000 Refunding, Series A, MBIA Insured, 5.70%, 06/01/20 ........................ 1,900,520
5,500,000 Series A, MBIA Insured, Pre-Refunded, 7.10%, 02/01/21 ..................... 6,098,785
6,130,000 Series B, AMBAC Insured, Pre-Refunded, 7.10%, 06/01/18 .................... 6,820,667
15,000,000 Series D, MBIA Insured, Pre-Refunded, 6.70%, 12/01/21 ..................... 16,802,100
4,000,000 Lynwood Public Financing Authority Revenue, Series A, AMBAC Insured, 5.75%,
09/01/18 ................................................................. 3,831,960
4,000,000 Madera RDA, Tax Revenue, Refunding, Madera Redevelopment Project Area,
CGIC Insured, 5.80%, 09/01/23 ............................................. 3,818,480
4,500,000 Marysville Hospital Revenue, Fremont Rideout Health Group, AMBAC Insured,
6.30%, 01/01/22 ........................................................... 4,535,055
Menlo Park CDA, Tax Allocation, Las Pulgas Community Project,
13,265,000 AMBAC Insured, 6.625%, 10/01/21 ........................................... 13,902,118
3,095,000 AMBAC Insured, 6.70%, 10/01/22 ............................................ 3,259,994
5,600,000 Mesa Construction Water District COP, Water Project, FGIC Insured, 6.40%,
03/15/18 .................................................................. 5,784,184
2,000,000 Modesto COP, Municipal Improvement, FGIC Insured, Pre-Refunded, 7.30%,
11/01/20 .................................................................. 2,221,600
5,000,000 Modesto COP, Water System Improvement Project, AMBAC Insured, 6.25%,
10/01/22 .................................................................. 5,034,550
Modesto Health Facilities Revenue, Memorial Hospital Association,
5,565,000 Refunding, Series A, MBIA Insured, 6.00%, 06/01/18 ........................ 5,436,059
1,500,000 Series 1991, MBIA Insured, 6.875%, 06/01/21 ............................... 1,582,485
3,000,000 Modesto Irrigation COP, Refunding & Capital Improvements Projects, Series A,
MBIA Insured, 6.00%, 10/01/21 ............................................. 2,945,250
6,745,000 Modesto Irrigation District, COP, Crossover Refunding, Geysers Geothermal
Power Project, BIG Insured, 5.00%, 10/01/17 ............................... 5,855,132
2,000,000 Modesto Irrigation District, Financing Authority Revenue, Domestic Water Project,
Series A, AMBAC Insured, 6.125%, 09/01/19.................................. 1,996,040
4,000,000 Modesto Wastewater Treatment Facilities Revenue, Refunding, AMBAC Insured,
8.00%, 11/01/07 ........................................................... 4,248,680
2,000,000 Monrovia RDA, Public Parking Facilities, Lease Revenue, Refunding, Series A,
AMBAC Insured, 5.20%, 04/01/13 ............................................ 1,828,620
720,000 Montebello USD, COP, Series B, MBIA Insured, 7.25%, 06/01/10 ................. 789,703
3,215,000 Monterey County, COP, Refunding, Sheriffs Facilities Project, CGIC Insured, 5.25%,
12/01/17 .................................................................. 2,869,002
$ 1,750,000 Morgan Hill RDAR, Tax Allocation, Ojo de Agua Community Development Project,
FGIC Insured, Pre-Refunded, 7.875%, 03/01/11 ............................... $ 1,829,555
Moulton Niguel California Water District,
1,420,000 AMBAC Insured, Pre-Refunded, 7.25%, 04/01/16 .............................. 1,607,767
2,280,000 Refunding, Consolidated Improvement Districts, MBIA Insured, 5.25%, 09/01/13 2,082,848
3,310,000 Moulton Niguel California Water District, COP, AMBAC Insured, 5.375%, 09/01/13 3,051,886
1,000,000 Mt. Diablo Hospital District Revenue, Series A, AMBAC Insured, Pre-Refunded,
7.00%, 12/01/17 ........................................................... 1,134,390
Mt. Diablo USD, CFD No. 1, Special Tax,
500,000 AMBAC Insured, 6.25%, 08/01/14 ............................................ 508,965
1,000,000 CGIC Insured, 6.00%, 08/01/24 ............................................. 983,730
1,000,000 FGIC Insured, 7.05%, 08/01/20 ............................................. 1,083,360
1,500,000 Mountain View COP, Improvement Financing Authority Revenue, City Hall/
Community Theatre, MBIA Insured, 6.50%, 08/01/16 .......................... 1,553,145
2,535,000 Mountain View School District, Refunding, CFD, Special Tax, Series A, CGIC Insured,
7.25%, 10/01/11 ........................................................... 2,756,660
2,000,000 National City Joint Powers Authority, Lease Revenue, National City Police Facilities
Project, AMBAC Insured, 6.75%, 10/01/17 ................................... 2,117,420
North Tahoe PUD, COP, Refunding & Improvement, Water System Project,
545,000 AMBAC Insured, 5.15%, 02/01/10 ............................................ 508,414
570,000 AMBAC Insured, 5.20%, 02/01/11 ............................................ 530,243
600,000 AMBAC Insured, 5.25%, 02/01/12 ............................................ 556,698
630,000 AMBAC Insured, 5.30%, 02/01/13 ............................................ 583,127
665,000 AMBAC Insured, 5.35%, 02/01/14 ............................................ 614,161
5,000,000 Northern California Power Agency Revenue, Multiple Capital Facilities, Series A,
MBIA Insured, 6.50%, 08/01/12 ............................................ 5,229,500
Northern California Power Agency Revenue, Refunding, Public Power Hydroelectric
Project No. 1,
3,200,000 AMBAC Insured, Pre-Refunded, 7.50%, 07/01/23 .............................. 3,900,800
8,960,000 Series A, AMBAC Insured, Pre-Refunded, 7.50%, 07/01/23 .................... 9,445,990
Northern California Transmission Revenue, California/Oregon Transmission Project,
2,500,000 Series A, MBIA Insured, 6.25%, 05/01/10 ................................... 2,569,600
4,000,000 Series A, MBIA Insured, 6.50%, 05/01/16 ................................... 4,179,520
5,000,000 Series A, MBIA Insured, 5.25%, 05/01/20 ................................... 4,465,450
11,000,000 Series A, MBIA Insured, 6.00%, 05/01/24 ................................... 10,719,390
4,000,000 Series A, MBIA Insured, Pre-Refunded, 7.00%, 05/01/10 ..................... 4,477,000
18,050,000 Series A, MBIA Insured, Pre-Refunded, 7.00%, 05/01/24 ..................... 20,202,463
5,810,000 Norwalk Community Facilities Financing Authority, Lease Revenue, MBIA Insured,
6.90%, 02/01/21 ... ......................................................... 6,130,886
$ 7,000,000 Oakland RDA, Tax Allocation, Refunding, Central District Redevelopment Project,
AMBAC Insured, Pre-Refunded, 7.50%, 02/01/14 ................................ $ 7,281,260
4,000,000 Oakland Special Revenue, Refunding, Series A, FGIC Insured, 7.60%, 08/01/21 .. 4,356,280
Oceanside COP,
4,715,000 Corporation Yard Project, AMBAC Insured, Pre-Refunded, 7.30%, 08/01/21 .... 5,528,385
1,000,000 c Refunding, Civic Center Project, 5.75%, 08/01/15 .......................... 965,410
5,000,000 Water Use Finance Association of California, Series A, AMBAC Insured, 6.50%,
10/01/17 ................................................................. 5,196,250
3,940,000 Oceanside Community Development COP, Public Parking Project, CGIC Insured,
Pre-Refunded, 7.875%, 04/01/19 .............................................. 4,863,850
10,000,000 Ontario Redevelopment Financing Authority Revenue, Ontario Redevelopment
Project No. 1, MBIA Insured, 5.80%, 08/01/23 ................................ 9,547,100
Orange County CFD No. 86-1, Special Tax, Rancho Santa Margarita,
5,000,000 Series A, CGIC Insured, 7.30%, 08/15/09 ................................... 5,383,550
10,000,000 Series A, CGIC Insured, Pre-Refunded, 7.625%, 07/01/18 .................... 11,128,400
Orange County COP,
11,250,000 Civic Center Expansion Project, AMBAC Insured, 6.70%, 08/01/18 ............ 11,609,438
4,770,000 Juvenile Justice Center Facilities, AMBAC Insured, 6.375%, 06/01/11 ....... 4,829,339
5,000,000 Juvenile Justice Center Facilities, AMBAC Insured, 6.00%, 06/01/17 ........ 4,799,800
3,500,000 Orange County Financing Authority Revenue, Tax Allocation, Refunding, Series A,
MBIA Insured, 6.50%, 09/01/22 ............................................... 3,545,920
4,875,000 Orange County Sanitation District, FGIC Insured, Pre-Refunded, 6.75%, 08/01/13 5,498,318
5,200,000 Orange RDAR, Tax Allocation, Refunding, Southwest Redevelopment Project,
Series A, AMBAC Insured, 5.70%, 10/01/23 .................................... 4,732,936
Oroville Public Finace Authority, Tax Allocation Revenue,
1,245,000 c Oroville Redevelopment Project No. 1, AMBAC Insured, 5.90%, 09/15/21 ...... 1,190,594
2,890,000 c Oroville Redevelopment Project No. 1, AMBAC Insured, 6.10%, 09/15/23 ...... 2,817,606
1,185,000 Otay Water District, COP, Water Facilities Project, MBIA Insured, 5.60%, 09/01/14 1,126,177
1,000,000 Oxnard Financing Authority Wastewater Revenue, Refunding, FGIC Insured, 5.50%,
06/01/14 .................................................................... 939,560
3,735,000 Oxnard Public Facilities Corp., COP, AMBAC Insured, Pre-Refunded, 7.50%,
09/01/06 .................................................................... 4,169,754
Palm Desert Financing Authority, Tax Allocation Revenue, Project Area No. 2, Series A,
2,490,000 MBIA Insured, 5.95%, 08/01/24 ............................................ 2,393,511
1,380,000 MBIA Insured, 5.85%, 08/01/25 ............................................ 1,307,260
2,250,000 Palmdale Water District, COP, Littlerock Dam Project, Series A, MBIA Insured,
5.75%, 10/01/23.............................................................. 2,147,220
1,000,000 Petaluma COP, Refunding, Series A, AMBAC Insured, 5.625%, 08/01/13 ........... 959,990
8,000,000 Pico Rivera Public Financing Authority Revenue, Refunding, Water Enterprise
Project, Series A, FGIC Insured, 6.00%, 12/01/17 ............................ 7,816,480
$ 1,000,000 Pinole RDA, Tax Allocation, Pinole Vista Redevelopment Project, Series A, MBIA
Insured, 6.125%, 08/01/17 ................................................... $ 998,140
1,500,000 Pittsburg Public Financing Authority, Wastewater Revenue, FGIC Insured,
Pre-Refunded, 6.80%, 06/01/22 ............................................... 1,691,745
Pittsburg RDA, Tax Allocation, Refunding, Los Medanos Community Development
Project,
3,000,000 MBIA Insured, Pre-Refunded, 7.50%, 08/01/14 ............................... 3,171,120
5,000,000 Series B, CGIC Insured, 5.70%, 08/01/32 ................................... 4,611,400
4,700,000 Series B, CGIC Insured, 5.80%, 08/01/34 ................................... 4,398,354
3,745,000 Placer County COP, Jail Kitchen Project, MBIA Insured, 6.90%, 10/01/21 ....... 4,036,211
Placer County Water Agency Revenue, COP,
2,350,000 CGIC Insured, 5.90%, 07/01/25 ............................................. 2,273,085
1,285,000 Refunding, MBIA Insured, 5.625%, 07/01/18 ................................. 1,211,575
5,500,000 Pleasant Hill RDA, Tax Allocation, Refunding, Pleasant Hill Commons Project,
CGIC Insured, 6.90%, 07/01/21 ............................................... 5,825,875
Port Hueneme RDA, Tax Allocation, Refunding, Central Community Redevelopment
Project,
2,000,000 AMBAC Insured, 5.50%, 05/01/23 ............................................ 1,842,560
1,915,000 Series A, AMBAC Insured, Pre-Refunded, 7.20%, 05/01/11 .................... 2,003,224
Port of Oakland, Port Revenue,
1,500,000 Series B, BIG Insured, 7.25%, 11/01/16 .................................... 1,588,230
1,165,000 Series C, BIG Insured, Pre-Refunded, 7.25%, 11/01/19 ...................... 1,251,315
Porterville COP, Refunding,
4,935,000 Sewer System and Improvement Project, AMBAC Insured, 6.30%, 10/01/18 ...... 5,017,859
6,075,000 Sewer System Project, AMBAC Insured, 6.30%, 10/01/18 ...................... 6,176,999
2,460,000 Poway RDA, Tax Allocation, Refunding, Parguay Redevelopment Project,
FGIC Insured, 5.75%, 12/15/26 ............................................... 2,326,962
3,000,000 Ramona Municipal Water District, COP, Refunding, AMBAC Insured, 7.20%,
10/01/10 .................................................................... 3,297,150
Rancho Cucamonga RDA, Tax Allocation, Refunding, Rancho Redevelopment Project,
1,215,000 Series A, FGIC Insured, Pre-Refunded, 7.75%, 05/01/06 ..................... 1,315,566
9,690,000 Series A, FGIC Insured, Pre-Refunded, 7.70%, 05/01/16 ..................... 10,582,061
Rancho Water District, COP, Refunding,
4,420,000 AMBAC Insured, 7.125%, 11/01/15 ........................................... 4,553,749
1,080,000 AMBAC Insured, Pre-Refunded, 7.125%, 11/01/15 ............................. 1,112,681
5,000,000 Redding Electric System Revenue, Refunding, COP, Series A, FGIC Insured, 5.50%,
06/01/11 .................................................................... 4,775,300
3,230,000 Redding Joint Powers Financing Authority, Water Revenue, Series A, AMBAC
Insured, 5.60%, 06/15/13 .................................................... 3,075,445
$ 2,120,000 Redding RDA, Tax Allocation, Hilltop Cypress Redevelopment, Series C, CGIC
Insured, 6.00%, 09/01/22 .................................................... $ 2,067,148
1,500,000 Redlands COP, Series C, MBIA Insured, Pre-Refunded, 7.00%, 12/01/10 .......... 1,701,585
2,115,000 Redlands USD, Series B, CGIC Insured, 6.25%, 06/01/19 ........................ 2,134,796
1,000,000 Redondo Beach RDA, Tax Allocation, South Bay Center Redevelopment Project,
FGIC Insured, 8.625%, 05/01/14 .............................................. 1,076,940
2,745,000 Redwood City, Public Financing Authority Revenue, Local Agency, Series A,
AMBAC Insured, 6.50%, 07/15/11 .............................................. 2,868,635
Riverside RDA, Lease Revenue,
2,000,000 Series A, AMBAC Insured, 6.50%, 10/01/24 .................................. 2,082,300
12,540,000 Series A, AMBAC Insured, 6.375%, 10/01/23 ................................. 12,826,163
2,000,000 Rohnert Park Public Building, COP, MBIA Insured, Pre-Refunded, 7.125%, 07/01/17 2,264,160
2,510,000 Rubidoux Community Service District COP, Water System Improvement Project,
AMBAC Insured, 6.20%, 12/01/14 .............................................. 2,529,352
11,800,000 Sacramento COP, MBIA Insured, 6.50%, 06/01/15 ................................ 12,168,867
Sacramento MUD, Electric Revenue,
1,000,000 Series I, MBIA Insured, 6.00%, 01/01/24 ................................... 974,690
1,000,000 Series R, FGIC Insured, Pre-Refunded, 7.125%, 02/01/13 .................... 1,065,830
1,970,000 Series S, FGIC Insured, Pre-Refunded, 7.125%, 02/01/11 .................... 2,099,685
2,530,000 Series S, FGIC Insured, Pre-Refunded, 6.625%, 02/01/17 .................... 2,677,499
2,600,000 Series X, MBIA Insured, Pre-Refunded, 7.00%, 07/01/20 ..................... 2,929,056
3,000,000 Series Y, MBIA Insured, Pre-Refunded, 6.75%, 09/01/19 ..................... 3,387,330
2,000,000 Sacramento RDA, Tax Allocation, Merged Downtown Redevelopment Project A,
MBIA Insured, 6.50%, 11/01/13 ............................................... 2,071,480
5,300,000 San Bernardino County COP, Refunding, Capital Improvement Projects,
MBIA Insured, 7.60%, 07/01/15 ............................................... 5,592,507
5,680,000 San Bernardino County Mortgage Revenue, Refunding, Don Miguel Apartments
Project, MBIA Insured, 6.40%, 03/01/25 ...................................... 5,682,954
San Bernardino Joint Powers Financing Authority Revenue, Tax Allocation, Refunding,
1,965,000 Northwest Redevelopment Project, Series E, MBIA Insured, 7.375%, 01/01/15 . 2,153,660
3,515,000 Southeast Industrial Park, Series F, MBIA Insured, 7.375%, 03/01/14 ....... 3,860,911
4,265,000 State College Project No. 4, AMBAC Insured, 7.20%, 09/01/08 ............... 4,620,104
2,060,000 State College Project, Series D, FGIC Insured, 7.375%, 09/01/10 ........... 2,287,712
5,750,000 San Bernardino Municipal Water and Sewer Department, COP, FGIC Insured,
6.25%, 02/01/17 ............................................................. 5,753,048
2,382,000 San Bernardino RDA, Capital Appreciation, Series B, AMBAC Insured, 7.70%,
01/10/09 .................................................................... 3,647,700
2,000,000 San Buenaventura COP, Water Project, AMBAC Insured, Pre-Refunded, 7.50%,
10/01/20 .................................................................... 2,308,620
$ 2,250,000 c San Buenaventura Public Facilities, Financing Authority Lease Revenue, Refunding,
CGIC Insured, 5.75%, 06/01/14 ............................................... $ 2,152,485
2,000,000 San Diego Community College District, COP, Series 1991, MBIA
Insured, 6.50%, 12/01/12 .................................................... 2,079,800
San Diego Mortgage Revenue, Refunding, University Canyon North,
325,000 Series A, MBIA Insured, 5.125%, 07/01/03 .................................. 317,203
3,105,000 Series A, MBIA Insured, 5.75%, 07/01/25 ................................... 2,856,568
San Diego RDA, Tax Allocation, Center City Redevelopment,
3,000,000 Series B, AMBAC Insured, 5.375%, 09/01/15 ................................. 2,769,000
3,000,000 Series B, AMBAC Insured, 5.40%, 09/01/16 .................................. 2,772,120
2,580,000 San Francisco BART District Revenue, Sales Tax, FGIC Insured, 6.60%, 07/01/12 2,720,507
6,900,000 San Francisco City and County Airports, Common International Airport Revenue
Series 5, FGIC Insured, 6.50%, 05/01/24 . ................................... 7,093,476
San Francisco City and County Sewer Revenue,
730,000 AMBAC Insured, Pre-Refunded, 6.50%, 10/01/16 .............................. 800,737
2,000,000 Refunding, AMBAC Insured, 6.00%, 10/01/11 ................................. 1,991,560
1,500,000 Series A, AMBAC Insured, Pre-Refunded, 7.25%, 10/01/15 .................... 1,620,390
2,370,000 Series B, AMBAC Insured, Pre-Refunded, 7.25%, 10/01/15 .................... 2,560,216
1,000,000 San Gabriel USD, COP, School Facilities Development Program, Series A, FSA
Insured, 6.00%, 09/01/15 .................................................... 972,580
3,000,000 San Jacinto USD, COP, Refunding Project, AMBAC Insured, 6.50%, 10/01/23 ...... 3,106,950
8,740,000 San Jose Financing Authority Revenue, Convention Project, CGIC Insured, 6.40%,
09/01/17 .................................................................... 8,855,193
San Jose RDA, Tax Allocation, Merged Area Redevelopment Project,
3,500,000 Refunding, Series A, MBIA Insured, Pre-Refunded, 7.50%, 08/01/09 .......... 3,699,640
1,250,000 Series A, AMBAC Insured, Pre-Refunded, 6.90%, 08/01/11 .................... 1,342,988
3,235,000 Series B, MBIA Insured, Pre-Refunded, 6.625%, 08/01/11 .................... 3,554,586
8,645,000 San Marcos Public Facilities Authority Revenue, Tax Allocation, Refunding, Series A,
CGIC Insured, 5.50%, 08/01/23 ............................................... 7,854,933
San Mateo County Transit District Revenue, Sales Tax,
4,100,000 Series A, MBIA Insured, 6.70%, 06/01/10 ................................... 4,385,688
6,700,000 Series A, MBIA Insured, 6.50%, 06/01/20 ................................... 7,130,943
San Ramon COP,
5,110,000 Central Park Expansion Project, CGIC Insured, 7.20%, 02/01/25 ............. 5,692,642
4,000,000 Public Financing Authority, CGIC Insured, Pre-Refunded, 7.80%, 01/01/19 ... 4,266,960
12,070,000 Refunding, Capital Improvement Project, AMBAC Insured, 7.05%, 03/01/21 .... 13,059,016
1,000,000 Sanger USD, Series A, CGIC Insured, 5.60%, 08/01/14 .......................... 940,820
3,250,000 Santa Ana COP, Refunding, Parking Facilities Project, Series A, AMBAC Insured,
6.125%, 06/01/16 ............................................................ 3,206,418
$ 2,790,000 Santa Ana CRDA, Tax Allocation, Refunding, South Main Street Redevelopment
Project, Series A, FGIC Insured, Pre-Refunded, 7.375%, 12/01/16 ... ......... $ 2,971,824
1,000,000 Santa Ana Financing Authority Water Revenue, MBIA Insured, 6.125%, 09/01/24 .. 984,540
15,000 Santa Ana HMR, Series A, FGIC Insured, 8.875%, 06/01/17 ...................... 15,835
Santa Barbara COP, Refunding,
3,575,000 Municipal Improvement Program, AMBAC Insured, 6.15%, 08/01/17 ............. 3,589,550
6,500,000 Water System Improvement Project, AMBAC Insured, 6.70%, 04/01/27 .......... 6,839,235
1,555,000 Santa Clara County COP, Board of Education Partners, Administration Building
Project, Series A, MBIA Insured, 6.00%, 04/01/25 ............................ 1,525,237
4,500,000 Santa Clara County COP, Partner Refunding Cap, Project I, AMBAC Insured, 6.25%,
10/01/16 .................................................................... 4,541,085
1,000,000 Santa Clara County Transit District, Sales Tax Revenue, Series A, AMBAC Insured,
6.25%, 06/01/21 ............................................................. 1,004,910
Santa Clara Electric Revenue,
1,350,000 Series A, MBIA Insured, 6.50%, 07/01/21 ................................... 1,393,173
1,500,000 Series A, MBIA Insured, 5.75%, 07/01/24 ................................... 1,421,205
3,300,000 Santa Clara Local Government Finance Authority Revenue, Refunding, BIG Insured,
Pre-Refunded, 7.25%, 02/01/13 ............................................... 3,675,506
4,000,000 Santa Clara RDA, Tax Allocation, Refunding, Bayshore North Project, AMBAC
Insured, 7.50%, 06/01/08 .................................................... 4,205,400
1,475,000 Santa Cruz County, COP, Capital Facilities Project, MBIA Insured, 6.70%, 09/01/20 1,556,405
3,690,000 Santa Cruz County, COP, Sub-Joint Wastewater Treatment Project, AMBAC Insured,
6.20%, 09/01/19 ............................................................. 3,705,572
3,600,000 Santa Cruz Hospital Revenue, Dominican Santa Cruz, Series A, MBIA Insured,
7.00%, 12/01/13 ............................................................. 3,767,148
11,830,000 Santa Fe Springs RDA, Tax Allocation, Redevelopment Project, Series A, MBIA
Insured, 6.40%, 09/01/22 .................................................... 12,083,162
2,750,000 Santa Fe Springs RDAR, Tax Allocation, Series A, AMBAC Insured, Pre-Refunded,
7.25%, 08/01/14 ............................................................. 3,085,060
Santa Maria COP, Local Water System, Refunding,
3,675,000 FGIC Insured, 5.50%, 08/01/13 ............................................. 3,458,359
1,785,000 FGIC Insured, 5.50%, 08/01/21 ............................................. 1,637,291
Santa Rosa High School District,
1,000,000 FGIC Insured, 5.90%, 05/01/16 ............................................. 984,590
1,050,000 Refunding, CGIC Insured, 5.75%, 05/01/18 .................................. 1,001,207
2,000,000 Santa Rosa Wastewater Service Facilities District, Refunding & Improvement,
AMBAC Insured, 6.00%, 07/02/15 .............................................. 1,990,760
Santa Rosa Water Revenue,
$ 1,115,000 Refunding, Series A, FGIC Insured, 5.25%, 09/01/12 ........................ $ 1,027,205
2,500,000 Series A, FGIC Insured, Pre-Refunded, 7.00%, 09/01/16 ..................... 2,785,775
2,000,000 Subregional Wastewater Project, Series A, AMBAC Insured, 6.50%, 09/01/16 .. 2,064,280
3,450,000 Sebastopol CDA, Tax Allocation, Community Development Project, CGIC Insured,
6.85%, 12/01/20 ............................................................ 3,634,334
Selma Public Financing Authority Revenue,
145,000 Series A, MBIA Insured, 5.80%, 09/15/11 ................................... 143,634
125,000 Series A, MBIA Insured, 5.80%, 09/15/12 ................................... 123,118
2,400,000 Series A, MBIA Insured, 5.875%, 09/15/22 .................................. 2,331,600
5,000,000 Simi Valley Public Financing Authority Revenue, Refunding, MBIA Insured, 5.75%,
09/01/23 .................................................................... 4,771,950
2,065,000 Solano County COP, Refunding, MBIA Insured, 7.375%, 10/01/02 ................. 2,122,241
1,325,000 Sonoma CDA, COP, Refunding, Sonoma Creek Senior Housing Project, AMBAC
Insured, 6.75%, 02/01/13 .................................................... 1,393,039
6,500,000 South Coast Air Quality Management District Revenue, Refunding, Building Corp.,
MBIA Insured, 5.50%, 08/01/14 ............................................... 6,140,485
13,500,000 South Orange County Public Financing Authority Revenue, Refunding, Special Tax,
Senior Lien, Series A, MBIA Insured, 6.20%, 09/01/13 ........................ 13,559,130
Southern California Public Power Authority Revenue,
2,500,000 Refunding, Palo Verde Project, Series B, FGIC Insured, 5.75%, 07/01/17 .... 2,397,700
8,000,000 Refunding, Sub-Crossover, Southern Transmission Project, MBIA Insured,
5.75%, 07/01/21 ......................................................... 7,547,840
2,340,000 Refunding, Transmission Project, Series B, FGIC Insured, 7.375%, 07/01/21 2,462,476
4,000,000 Southgate Public Financing Authority Revenue, Tax Allocation, Southgate
Redevelopment Project No. 1, AMBAC Insured, 5.875%, 09/01/24 ................ 3,856,560
3,750,000 Stanton RDA, Tax Allocation, Refunding, Stanton Community Development Project,
AMBAC Insured, 5.45%, 12/01/17 .............................................. 3,458,438
4,000,000 Stockton COP, Wastewater Facility, AMBAC Insured, Pre-Refunded, 7.40%,
09/01/10 .................................................................... 4,409,040
1,640,000 Stockton-East Water District, COP, Series A, AMBAC Insured, Pre-Refunded, 7.30%,
04/01/20 .................................................................... 1,860,318
4,260,000 Suisun City RDA, Tax Allocation, Refunding, Suisun City Redevelopment Project,
MBIA Insured, 5.625%, 10/01/13 .............................................. 4,043,166
800,000 Sulphur Springs USD, COP, Series 1991, AMBAC Insured, 7.20%, 02/01/21 ........ 827,664
5,485,000 Sunnyvale RDA, Parking Revenue, Refunding, AMBAC Insured, 6.50%, 10/01/22 .... 5,630,462
2,785,000 Sunnyvale RDA, Tax Allocation, Refunding, Central Core Project, AMBAC Insured,
6.50%, 10/01/22 ............................................................. 2,858,858
4,000,000 Susanville Public Financing Authority Revenue, Series A, AMBAC Insured, 6.30%,
09/01/17 .................................................................... 4,070,880
$ 1,335,000 Taft COP, Sewer Facilities Improvement Project, CGIC Insured, Pre-Refunded,
7.25%, 08/01/15 ............................................................. $ 1,474,560
2,000,000 Tehachapi Water and Sewer Revenue, Refunding, MBIA Insured, 6.75%, 11/01/20 .. 2,131,900
4,000,000 Three Valleys Municipal Water District, COP, Refunding, Miramar Water Treatment,
Water Transmission and Hydroelectric Generating Facilities Project, MBIA Insured,
Pre-Refunded, 7.30%, 11/01/14 ............................................... 4,284,240
765,000 Torrance COP, Refunding, Improvement Project, AMBAC Insured, 7.20%, 04/01/16 . 790,605
1,630,000 Tracy COP, Tracy Public Facilities Corp., FGIC Insured, Pre-Refunded, 8.10%,
01/01/08 .................................................................... 1,719,438
2,300,000 Tracy COP, Wastewater Enterprise Financing, AMBAC Insured, 5.25%, 12/01/13 ... 2,099,647
Tri-City Hospital District Revenue,
5,000,000 MBIA Insured, 7.90%, 02/01/18 ............................................. 5,428,300
2,350,000 MBIA Insured, 6.00%, 02/01/22 ............................................. 2,277,127
2,925,000 Truckee-Donner, Water System Improvement Project, MBIA Insured, 6.75%,
11/15/21 .................................................................... 3,079,031
4,000,000 Tulare County COP, Capital Improvement Project, Refunding,
Public Facilities Corp., BIG Insured, Pre-Refunded, 8.10%, 11/01/07 ....... 4,420,200
1,500,000 Tulare Sewer Revenue, Refunding, AMBAC Insured, 5.70%, 11/15/18 .............. 1,436,460
115,000 Turlock Irrigation District, COP, Administrative Facilities Project, FGIC Insured,
6.75%, 01/01/13 ............................................................. 119,306
7,125,000 Turlock Irrigation District Revenue, Refunding, Series A, MBIA Insured, 5.75%,
01/01/18 .................................................................... 6,872,561
University of California Revenue,
6,100,000 Housing System, Group A, Series X, MBIA Insured, Pre-Refunded, 7.60%,
11/01/18 ................................................................ 6,498,818
2,800,000 Housing System, Group A-2, BIG Insured, Pre-Refunded, 7.80%, 11/01/15 ..... 2,971,472
3,750,000 Multiple Purpose Project, Series A, AMBAC Insured, Pre-Refunded, 6.75%,
09/01/23 ................................................................. 4,143,450
1,000,000 Multiple Purpose Project, Series A, MBIA Insured, Pre-Refunded, 6.90%,
09/01/15 ................................................................. 1,076,460
1,500,000 Multiple Purpose Project, Series A, MBIA Insured, Pre-Refunded, 7.00%,
09/01/23 ................................................................. 1,617,750
Upland COP,
3,985,000 Refunding, Police Building Project, AMBAC Insured, 6.60%, 08/01/16 ........ 4,199,312
2,385,000 Water System Improvement Project, FGIC Insured, 6.60%, 08/01/16 ........... 2,513,265
2,000,000 Water System Improvement Project, FGIC Insured, Pre-Refunded, 7.75%,
08/01/16 ................................................................. 2,119,260
1,355,000 Vacaville Public Financing Authority Revenue, Tax Allocation, Refunding, Vacaville
Redevelopment Project, MBIA Insured, 6.35%, 09/01/22 ........................ 1,375,040
$ 4,855,000 Vallejo Revenue, Water Improvement Project, Series B, FGIC Insured,
6.50%, 11/01/14 ............................................................. $ 5,064,542
1,495,000 Vista USD, COP, MBIA Insured, 5.50%, 12/01/16 ................................ 1,390,171
2,200,000 Walnut Valley Water District, COP, Badillo Grand Transmission Project, FGIC Insured,
6.125%, 02/01/18 ............................................................ 2,182,598
1,800,000 Watsonville Solid Waste Revenue, MBIA Insured, 6.50%, 05/15/16 ............... 1,855,926
1,250,000 West Basin Municipal Water District, COP, Water Reclamation Project, AMBAC
Insured, Pre-Refunded, 6.85%, 08/01/16 ...................................... 1,401,725
4,185,000 West Sacramento Financing Authority Revenue, MBIA Insured, 6.25%, 09/01/16 ... 4,255,141
3,340,000 West Sacramento RDA, Tax Allocation, West Sacramento Redevelopment Project,
MBIA Insured, 6.25%, 09/01/21 ............................................... 3,373,600
4,150,000 Whittier Health Facilities Revenue, Refunding, Presbyterian Intercommunity Hospital,
MBIA Insured, 6.50%, 06/01/10 ............................................... 4,276,492
2,340,000 Whittier Solid Waste Revenue, Refunding, Series A, AMBAC Insured, 5.375%,
08/01/14 .................................................................... 2,177,581
2,000,000 Whittier Water Revenue, Series A, AMBAC Insured, 5.625%, 06/01/17 ............ 1,899,760
1,285,000 William S. Hart Joint School Authority, Special Tax Revenue, Refunding,
Community Facilities, CGIC Insured, 6.60%, 09/01/18 ......................... 1,340,562
750,000 Windsor Joint Powers Financing Authority, Wastewater Revenue, Refunding,
Series A, AMBAC Insured, 6.125%, 12/15/12 ................................... 755,175
Total Bonds (Cost $1,391,905,893) ...................................... 1,446,650,123
a Zero Coupon Bonds .4%
28,405,000 San Bernardino County SFMR, Series A, GNMA Insured, ETM 05/01/22,
(original accretion rate 7.90%), 05/01/22
(Cost $4,407,440) ........................................................... 5,381,610
Total Long Term Investments (Cost $1,396,313,333) ...................... 1,452,031,733
b Short Term Investments .2%
1,000,000 California Health Facilities Financing Revenue, Refunding, St. Joseph Health System
Series A, Daily VRDN and Put, 4.10%, 07/01/13 ............................... 1,000,000
California Pollution Control Financing Authority PCR, Refunding,
500,000 Shell Oil Co. Project, Daily VRDN and Put, 4.05%, 10/01/10 ............... 500,000
2,000,000 Shell Oil Co. Project, Daily VRDN and Put, 4.05%, 10/01/11 ............... 2,000,000
Total Short Term Investments (Cost $3,500,000) ......................... 3,500,000
Total Investments (Cost $1,399,813,333) 99.1% ..................... 1,455,531,733
Other Assets and Liabilities, Net .9% ............................. 13,055,121
Net Assets 100.0% ................................................. $1,468,586,854
At June 30, 1995, the net unrealized appreciation based on the
cost of investments for income tax purposes of $1,399,813,333 was as follows:
Aggregate gross unrealized appreciation for all investments in which there was an
excess of value over tax cost ............................................. $ 69,965,072
Aggregate gross unrealized depreciation for all investments in which there was an
excess of tax cost over value ............................................. (14,246,672)
Net unrealized appreciation ................................................ $ 55,718,400
</TABLE>
PORTFOLIO ABBREVIATIONS:
1915 ACT - Improvement Bond Act of 1915
AD - Assessment District
AMBAC - American Municipal Bond Assurance Corp.
BART - Bay Area Rapid Transit
BIG - Bond Investors Guaranty Insurance Co.
CDA - Community Development Agency
CFD - Communities Facilities District
CGIC - Capital Guaranty Insurance Co.
COP - Certificate of Participation
CRDA - Community Redevelopment Agency
ETM - Escrow to Maturity
FGIC - Financial Guaranty Insurance Co.
FSA - Financial Security Assistance
GNMA - Government National Mortgage Association
GO - General Obligation
HFAR - Housing Finance Agency Revenue
HMR - Home Mortgage Revenue
ID - Improvement District
MBIA - Municipal Bond Investors Assurance Corp.
MUD - Municipal Utility District
PCR - Pollution Control Revenue
PUD - Public Utility District
RDA - Redevelopment Agency
RDAR - Redevelopment Agency Revenue
SFMR - Single Family Mortgage Revenue
USD - Unified School District
aZero coupon bonds. The current effective yield may vary. The original accretion
rate will remain constant.
bVariable rate demand notes (VRDN's) are tax-exempt
obligations which contain a floating or variable interest rate adjustment
formula and an unconditional right of demand to receive payment of the principal
balance plus accrued interest upon short notice prior to specified dates. The
interest rate may change on specified dates in relationship with changes in a
designated rate (such as the prime interest rate or U.S. Treasury bills rate).
cSee Note 1(i) regarding securities purchased on a when-issued basis.
The accompanying notes are an integral part of these financial statements.
FRANKLIN CALIFORNIA TAX-FREE TRUST
Statement of Investments in Securities and Net Assets, June 30, 1995
<TABLE>
<CAPTION>
Face Value
Amount Franklin California Intermediate-Term Tax-Free Income Fund (Note 1)
Investments 98.3%.................................................................
<S> <C> <C>
$ 535,000 ABAG Finance Authority of Nonprofit Corps., COP, 5.50%, 06/01/03 .................. $ 523,251
ABAG Finance Corp., COP Authority,
100,000 Refunding, Series A, 5.90%, 06/01/02 ............................................ 100,838
100,000 Series B, 6.40%, 10/01/03 ....................................................... 102,885
Alameda County COP,
100,000 Capital Projects, Series 1992, 6.25%, 06/01/06 .................................. 101,697
395,000 Series 1994, 5.70%, 04/01/02 .................................................... 395,178
420,000 Series 1994, 5.80%, 04/01/03 .................................................... 420,214
440,000 Series 1994, 5.90%, 04/01/04 .................................................... 440,246
Atascadero USD, COP, Measure B, Capital Project,
220,000 Series B, 5.20%, 08/01/03 ....................................................... 209,671
200,000 Series B, 5.30%, 08/01/04 ....................................................... 189,770
Auburn COP, Refunding,
65,000 Civic Center Project, 5.10%, 09/01/99 ........................................... 63,104
65,000 Civic Center Project, 5.30%, 09/01/00 ........................................... 62,863
70,000 Civic Center Project, 5.45%, 09/01/01 ........................................... 67,688
75,000 Civic Center Project, 5.60%, 09/01/02 ........................................... 72,425
80,000 Civic Center Project, 5.70%, 09/01/03 ........................................... 76,968
80,000 Civic Center Project, 5.75%, 09/01/04 ........................................... 76,431
Bakersfield Central District Revenue, Development Agency, Tax Allocation, Refunding,
295,000 Downtown Bakersfield Redevelopment, 6.00%, 04/01/01 ............................. 295,817
310,000 Downtown Bakersfield Redevelopment, 6.10%, 04/01/02 ............................. 310,980
330,000 Downtown Bakersfield Redevelopment, 6.20%, 04/01/03 ............................. 331,165
350,000 Downtown Bakersfield Redevelopment, 6.30%, 04/01/04 ............................. 351,355
100,000 Bakersfield Hospital Revenue, Bakersfield Memorial Hospital Project, Series A, 5.70%,
01/01/00 ......................................................................... 101,100
California Educational Facilities Authority Revenue, Refunding, Pooled College &
University Financing,
1,000,000 Refunding, Series B, 5.80%, 06/01/02 ............................................ 1,005,010
1,105,000 Series B, 5.90%, 06/01/03 ....................................................... 1,111,155
100,000 California Health Facilities Financing, San Diego Hospital Association, Series B, MBIA
Insured, 5.60%, 08/01/03 ......................................................... 102,803
California State Public Works, Board Lease Revenue, Department of Corrections,
Calpatria State Prison,
250,000 Imperial County, Series A, 6.125%, 09/01/04 ..................................... 258,473
750,000 Series A, 5.00%, 12/01/01 ....................................................... 729,945
940,000 Series D, Susanville, 4.80%, 06/01/03 ........................................... 882,726
865,000 California Statewide CDA Revenue, COP, St. Joseph Health System Group, 6.00%,
07/01/06 ......................................................................... 882,421
California Statewide CDA Revenue, Refunding, COP, Health Facilities, Barton Memorial
Hospital,
$ 200,000 Series B, 5.70%, 12/01/00 ....................................................... $ 201,834
450,000 Series B, 6.40%, 12/01/05 ....................................................... 467,343
585,000 California Statewide Communities Development Corp., COP, Series A, Pacific Homes,
5.50%, 04/01/04 .................................................................. 562,203
350,000 Campbell COP, Refunding, Civic Center Project, 5.60%, 10/01/03 .................... 342,521
200,000 Carson RDA Project, Area No. 1, Refunding, 6.10%, 10/01/02 ........................ 200,092
1,000,000 Central Joint Powers Health Financing Authority, COP, Refunding, Community Central
Hospital, 5.25%, 02/01/04 ........................................................ 945,140
100,000 Clovis COP, Water System Improvement Project, AMBAC Insured, 5.90%, 03/01/03 ...... 104,879
Coalinga Public Financing Authority Revenue,
430,000 Series A, MBIA Insured, 5.00%, 08/01/03 ......................................... 421,047
455,000 Series A, MBIA Insured, 5.10%, 08/01/04 ......................................... 444,653
1,405,000 Series B, 6.00%, 09/15/03 ....................................................... 1,384,347
Commerce Joint Powers Financing Authority, Water Facilities, Lease Revenue, Refunding,
340,000 Series A, 5.50%, 10/01/02 ....................................................... 333,615
360,000 Series A, 5.625%, 10/01/03 ...................................................... 351,745
470,000 Series A, 5.75%, 10/01/04 ....................................................... 460,407
Compton Sewer Revenue,
120,000 Series 1993, 5.40%, 07/01/98 .................................................... 120,490
125,000 Series 1993, 5.60%, 07/01/99 .................................................... 125,618
130,000 Series 1993, 5.70%, 07/01/00 .................................................... 130,389
140,000 Series 1993, 5.80%, 07/01/01 .................................................... 140,840
150,000 Series 1993, 5.90%, 07/01/02 .................................................... 151,020
155,000 Series 1993, 6.00%, 07/01/03 .................................................... 155,876
165,000 Series 1993, 6.10%, 07/01/04 .................................................... 165,449
175,000 Series 1993, 6.20%, 07/01/05 .................................................... 175,513
185,000 Series 1993, 6.30%, 07/01/06 .................................................... 185,540
Concord RDA, Tax Allocation, Refunding, Central Concord Redevelopment Project,
625,000 Series A, 5.50%, 07/01/02 ....................................................... 598,781
655,000 Series A, 5.625%, 07/01/03 ...................................................... 625,597
500,000 Contra Costa County MFHR, Byron Park Project, Series C, 6.00%, 07/20/03 ........... 508,905
Danville Financing Authority Revenue, Sycamore Valley,
330,000 Reassessment District No. 93-2, 5.40%, 09/02/01 ................................. 325,060
515,000 Reassessment District No. 93-2, 5.60%, 09/02/02 ................................. 509,289
245,000 Reassessment District No. 93-2, 5.70%, 09/02/03 ................................. 241,996
1,000,000 Reassessment District No. 93-2, 5.80%, 09/02/04 ................................. 990,130
100,000 Desert Hospital District Revenue, COP, Desert Hospital Corp., CGIC Insured, 6.25%,
07/01/03 ......................................................................... 106,655
920,000 Encinitas Union School District, COP, Measure B, Capital Projects, 5.20%, 09/01/03 883,310
Fontana COP, Refunding, Police Facilities Project,
$ 330,000 Series 1993, 5.00%, 04/01/01 .................................................... $ 314,457
350,000 Series 1993, 5.00%, 04/01/02 .................................................... 329,326
365,000 Series 1993, 5.10%, 04/01/03 .................................................... 341,009
1,150,000 Foster City Public Financing Authority Revenue, Community Development Project,
Series A, 5.60%, 09/01/03 ........................................................ 1,130,002
1,000,000 Fresno Joint Powers Financing Authority, Local Agency Revenue, Refunding, Series A,
6.20%, 09/02/03 .................................................................. 1,006,880
Garden Grove CDA, Tax Allocation, Refunding, Garden Grove Community Project,
1,000,000 Series 1993, 5.00%, 10/01/99 .................................................... 981,240
1,425,000 Series 1993, 5.40%, 10/01/04 .................................................... 1,369,767
300,000 Garden Grove COP, Bahia Village/Emerald Isle Project, FSA Insured, 5.20%, 08/01/03 297,648
Glendale Parking Facilities, Joint Powers Authority Revenue,
215,000 Series A, 5.10%, 03/01/01 ....................................................... 205,622
255,000 Series A, 5.20%, 03/01/02 ....................................................... 242,314
125,000 Series A, 5.30%, 03/01/03 ....................................................... 118,070
750,000 Goleta Water District Revenue, COP, Refunding, Goleta Reclamation Project, FGIC
Insured, 5.50%, 12/01/08 ......................................................... 734,648
3,935,000 Hesperia Public Financing Authority Revenue, Series A, 5.80%, 10/01/03 ........... 3,834,225
Hollister RDA, Tax Allocation, Hollister Community Development Project,
525,000 Series 1994, 5.35%, 10/01/03 .................................................... 495,206
550,000 Series 1994, 5.45%, 10/01/04 .................................................... 516,115
585,000 Series 1994, 5.55%, 10/01/05 .................................................... 546,343
Imperial County Local Transportation Authority, Sales Tax Revenue,
490,000 Series 1993, 5.50%, 05/01/04 .................................................... 468,518
515,000 Series 1993, 5.50%, 05/01/05 .................................................... 486,917
La Palma Community Development Commission, Tax Allocation, Refunding,
125,000 La Palma Community Development Project No. 1, 5.20%, 06/01/00 ................... 115,009
130,000 La Palma Community Development Project No. 1, 5.40%, 06/01/01 ................... 118,838
135,000 La Palma Community Development Project No. 1, 5.50%, 06/01/02 ................... 122,265
145,000 La Palma Community Development Project No. 1, 5.60%, 06/01/03 ................... 130,301
150,000 La Palma Community Development Project No. 1, 5.70%, 06/01/04 ................... 133,934
160,000 La Palma Community Development Project No. 1, 5.80%, 06/01/05 ................... 142,134
Lancaster RDA, Tax Allocation, Refunding,
35,000 Central Business District Redevelopment, 5.00%, 08/01/98 ........................ 34,135
35,000 Central Business District Redevelopment, 5.125%, 08/01/99 ....................... 33,919
35,000 Central Business District Redevelopment, 5.25%, 08/01/00 ........................ 33,732
40,000 Central Business District Redevelopment, 5.375%, 08/01/01 ....................... 38,369
40,000 Central Business District Redevelopment, 5.50%, 08/01/02 ........................ 38,216
45,000 Central Business District Redevelopment, 5.60%, 08/01/03 ........................ 42,783
Lancaster RDA, Tax Allocation, Refunding, (cont.)
$ 45,000 Central Business District Redevelopment, 5.70%, 08/01/04 ........................ $ 42,589
50,000 Central Business District Redevelopment, 5.70%, 08/01/05 ........................ 46,935
50,000 Fox Field Redevelopment Project Area, 5.00%, 08/01/98 ........................... 48,765
55,000 Fox Field Redevelopment Project Area, 5.125%, 08/01/99 .......................... 53,302
55,000 Fox Field Redevelopment Project Area, 5.25%, 08/01/00 ........................... 53,008
60,000 Fox Field Redevelopment Project Area, 5.375%, 08/01/01 .......................... 57,554
65,000 Fox Field Redevelopment Project Area, 5.50%, 08/01/02 ........................... 62,102
65,000 Fox Field Redevelopment Project Area, 5.60%, 08/01/03 ........................... 61,797
70,000 Fox Field Redevelopment Project Area, 5.70%, 08/01/04 ........................... 66,249
75,000 Fox Field Redevelopment Project Area, 5.70%, 08/01/05 ........................... 70,402
990,000 Lemon Grove MFHR, Refunding, Hillside Terrace Apartments, 5.375%, 01/01/19 ........ 958,884
1,025,000 Loma Linda Hospital Revenue, Refunding, Loma Linda University Medical Center, Series
B, MBIA Insured, 5.00%, 12/01/04 ................................................. 989,894
Los Angeles County COP, Insured Health Clinic,
40,000 Series E, 4.60%, 12/01/99 ....................................................... 38,306
45,000 Series E, 4.75%, 12/01/00 ....................................................... 42,832
45,000 Series E, 4.85%, 12/01/01 ....................................................... 42,554
45,000 Series E, 4.95%, 12/01/02 ....................................................... 42,257
Los Angeles County Transport Commission, COP,
100,000 Series B, 5.90%, 07/01/00 ....................................................... 103,482
200,000 Series B, 6.00%, 07/01/01 ....................................................... 208,138
100,000 Los Angeles GO, Series A, 5.00%, 08/01/01 ......................................... 100,048
Los Angeles MFHR, Refunding,
185,000 Series G, FSA Insured, 4.90%, 01/01/02 .......................................... 182,175
235,000 Series G, FSA Insured, 4.90%, 07/01/02 .......................................... 231,181
205,000 Series G, FSA Insured, 5.00%, 01/01/03 .......................................... 201,486
245,000 Series G, FSA Insured, 5.00%, 07/01/03 .......................................... 240,573
220,000 Series G, FSA Insured, 5.10%, 01/01/04 .......................................... 215,844
260,000 Series G, FSA Insured, 5.10%, 07/01/04 .......................................... 254,862
600,000 Los Angeles Municipal Improvement Corp., Lease Revenue, Refunding, Central Library
Project, Series B, 4.875%, 06/01/01 .............................................. 571,404
1,000,000 Los Angeles USD, COP, Refunding, Multiple Property Project, FSA Insured, 5.00%,
11/01/04 ......................................................................... 962,430
2,000,000 Lynwood Public Financing Authority Revenue, Series A, AMBAC Insured, 5.10%,
09/01/03 ......................................................................... 1,984,080
515,000 Madera COP, Refunding, Madera Community Hospital, 5.10%, 03/01/03 ................. 485,939
Madera RDA, Tax Revenue, Refunding, Madera Redevelopment Project,
175,000 CGIC Insured, 5.15%, 09/01/02 ................................................... 174,780
185,000 CGIC Insured, 5.25%, 09/01/03 ................................................... 184,138
195,000 CGIC Insured, 5.35%, 09/01/04 ................................................... 193,317
$ 540,000 Merced Irrigation District, COP, Water Facilities Project, 6.125%, 11/01/03 ....... $ 535,955
715,000 Merced Public Financing Authority, Local Agency Revenue, Tax Allocation, Series A,
5.00%, 12/01/04 .................................................................. 667,059
MidPeninsula Regional Open Space District, COP, Special District Association Finance
Corp.,
510,000 Series 1993, 5.10%, 09/01/02 .................................................... 483,863
530,000 Series 1993, 5.20%, 09/01/03 .................................................... 499,991
100,000 Mohave Water Agency Improvement GO, District M-Morongo, 6.20%, 09/01/01 ........... 102,139
100,000 Morgan Hill RDA, Tax Allocation, Refunding, 5.70%, 03/01/01 ....................... 99,420
100,000 Mount Diablo Hospital District Revenue, Series A, AMBAC Insured, 5.10%, 12/01/03 .. 98,519
Mountain View Shoreline Regional Park, Community Tax Allocation,
335,000 Series A, 5.00%, 08/01/02 ....................................................... 320,930
785,000 Series A, 5.10%, 08/01/03 ....................................................... 748,490
540,000 Series A, 5.20%, 08/01/04 ....................................................... 512,627
500,000 New Haven USD, COP, Refunding, 5.30%, 07/01/01 .................................... 498,980
300,000 Newark USD, COP, Crossover Refunding, 5.75%, 09/01/02 ............................. 295,167
100,000 Northern California, Public Power Agency Revenue, Refunding, Geothermal Project No. 3,
Series A, 7.00%, 07/01/07 ........................................................ 103,770
1,745,000 Oakland USD, Alameda County COP, Refunding, 5.00%, 09/15/99 ....................... 1,682,878
1,000,000 Ontario Redevelopment Financing Authority Local Agency Revenue, Series A, Community
Facility No. 1, AD Nos. 97B-100B-105R, CGIC Insured, 5.60%, 09/02/03 ............. 1,014,940
1,175,000 Ontario Redevelopment Financing Authority Revenue, Project No. 1, MBIA Insured, 5.10%,
08/01/03 ......................................................................... 1,161,958
800,000 Orange County Development Agency, Tax Allocation, Refunding, Santa Ana Heights
Project Area, 5.90%, 09/01/04 .................................................... 745,256
500,000 Orange County Local Transportation Authority, Sales Tax Revenues, First Senior-
Measure M, 6.00%, 02/15/06 ....................................................... 507,010
1,000,000 Orange County Local Transportation Authority, Sales Tax Revenues, Second Senior-
Measure M, FGIC Insured, 4.70%, 02/15/05 ......................................... 911,510
1,715,000 Paramount RDA, Tax Allocation, Refunding, Redevelopment Project, Area No. 1, 6.05%,
08/01/05 ......................................................................... 1,740,725
100,000 Pasadena Community Development Commision Tax, Refunding, AMBAC Insured, 4.75%,
08/01/98 ......................................................................... 100,364
Paso Robles Union School District,
1,635,000 COP, 5.75%, 08/01/03 ............................................................ 1,646,445
300,000 COP, Measure D, Capital Projects, Phase III, 5.75%, 08/01/02 .................... 296,562
Pismo Beach Public Financing Authority Revenue,
45,000 Series 1993, 6.25%, 09/15/01 .................................................... 45,421
50,000 Series 1993, 6.40%, 09/15/02 .................................................... 50,539
50,000 Series 1993, 6.50%, 09/15/03 .................................................... 50,538
55,000 Series 1993, 6.55%, 09/15/04 .................................................... 55,512
$1,530,000 Pleasant Hill RDA, RMR, Refunding, 5.40%, 02/01/05 ................................ $ 1,459,528
Rialto RDA, Tax Allocation, Refunding, Industrial Redevelopment,
270,000 Series A, 5.40%, 09/01/02 ....................................................... 263,571
280,000 Series A, 5.50%, 09/01/03 ....................................................... 272,633
Riverside County Asset Leasing Corp., Leasehold Revenue, Riverside County Hospital
Project,
200,000 Series A, 5.90%, 06/01/02 ....................................................... 201,676
200,000 Series A, 6.00%, 06/01/04 ....................................................... 201,906
1,000,000 Sacramento MUD, Electric Revenue, Series E, 5.25%, 05/15/03 ....................... 995,480
San Bernardino City USD, COP, Refunding,
1,030,000 Series 1994, 4.625%, 05/01/02 ................................................... 958,147
1,185,000 Series 1994, 4.75%, 05/01/03 .................................................... 1,101,920
175,000 San Bernardino County Mortgage Revenue, Refunding, Don Miguel Apartments Project,
MBIA Insured, 6.00%, 09/01/03 .................................................... 179,057
San Clemente, 1915 ACT, Refunding,
415,000 AD No. 85-1, 5.00%, 09/02/02 .................................................... 366,931
435,000 AD No. 85-1, 5.10%, 09/02/03 .................................................... 379,585
460,000 AD No. 85-1, 5.20%, 09/02/04 .................................................... 397,923
San Diego County COP,
100,000 Children's Center Project, 5.50%, 04/01/99 ...................................... 99,193
100,000 Children's Center Project, 6.00%, 10/01/02 ...................................... 100,308
455,000 San Diego Mortgage Revenue, Refunding, Mariners Cove, Series B, 5.125%, 09/01/03 .. 443,875
100,000 San Diego Port Facilities Revenue, Refunding, National Steel & Shipbuilding Co., 6.60%,
12/01/02 ......................................................................... 91,759
San Francisco City and County RDAR,
300,000 Hotel Tax Revenue, CGIC Insured, 5.80%, 07/01/01 ................................ 315,126
245,000 Hotel Tax Revenue, CGIC Insured, 5.90%, 07/01/02 ................................ 258,306
35,000 Refunding, Series A, MBIA Insured, 6.125%, 07/01/02 ............................. 35,206
750,000 San Gorgonio Memorial Health Care District Health Facility Revenue, California Mortgage
Insured, 6.375%, 06/01/08 ........................................................ 757,793
400,000 San Joaquin County COP, General Hospital Project, 5.90%, 09/01/03 ................ 402,016
300,000 San Jose Financing Authority Revenue, Refunding, Convention Center Project, Series C,
5.75%, 09/01/03 .................................................................. 300,360
600,000 San Juan USD, COP, Gold River Elementary School Project, 5.65%, 04/01/03........... 590,724
San Ramon COP,
85,000 Capital Improvements Project, 5.20%, 03/01/01 ................................... 82,565
90,000 Capital Improvements Project, 5.30%, 03/01/02 ................................... 87,056
95,000 Capital Improvements Project, 5.40%, 03/01/03 ................................... 91,534
100,000 Capital Improvements Project, 5.50%, 03/01/04 ................................... 96,003
105,000 Capital Improvements Project, 5.60%, 03/01/05 ................................... 100,465
San Ramon COP, (cont.)
$ 110,000 Capital Improvements Project, 5.70%, 03/01/06 ................................... $ 105,334
120,000 Capital Improvements Project, 5.75%, 03/01/07 ................................... 114,596
125,000 Capital Improvements Project, 5.80%, 03/01/08 ................................... 119,070
985,000 Santa Barbara RDA, Tax Allocation, Central City Redevelopment Project, 6.00%,
03/01/03 ......................................................................... 967,172
100,000 Santa Monica Parking Authority, Lease Revenue, Refunding Project, 6.00%, 07/01/03.. 103,522
Sebastopol COP, Refunding,
200,000 Series 1994, 5.50%, 06/01/03 .................................................... 194,132
215,000 Series 1994, 5.60%, 06/01/04 .................................................... 208,114
240,000 Series 1994, 5.70%, 06/01/05 .................................................... 231,715
Selma Public Financing Authority Revenue,
100,000 Series A, MBIA Insured, 5.15%, 09/15/01 ......................................... 101,035
100,000 Series A, MBIA Insured, 5.25%, 09/15/02 ......................................... 100,804
115,000 Series A, MBIA Insured, 5.50%, 09/15/04 ......................................... 116,178
120,000 Series A, MBIA Insured, 5.60%, 09/15/05 ......................................... 121,225
125,000 Series A, MBIA Insured, 5.65%, 09/15/06 ......................................... 125,994
135,000 Series A, MBIA Insured, 5.70%, 09/15/07 ......................................... 135,768
140,000 Series A, MBIA Insured, 5.70%, 09/15/08 ......................................... 140,172
150,000 Series A, MBIA Insured, 5.75%, 09/15/09 ......................................... 149,697
155,000 Series A, MBIA Insured, 5.75%, 09/15/10 ......................................... 153,591
100,000 Shasta Joint Powers Financing Authority Lease Revenue, Courthouse Improvement
Project, Series A, 5.80%, 06/01/00 ............................................... 99,825
50,000 Solano Beach COP, City Hall Project, 5.80%, 10/01/02............................... 50,141
Solano
Beach COP, Justice Facility and Public Building Project,
1,355,000 Refunding, 5.10%, 10/01/99 ...................................................... 1,324,160
1,100,000 Refunding, 5.875%, 10/01/05 ..................................................... 1,064,184
South San Francisco, Capital Improvements Financing Authority Revenue, Refunding,
195,000 South San Francisco Conference Center, 5.70%, 09/01/02 .......................... 189,854
205,000 South San Francisco Conference Center, 5.80%, 09/01/03 .......................... 199,028
215,000 South San Francisco Conference Center, 5.90%, 09/01/04 .......................... 208,630
100,000 Southern California Rapid Transit District Revenue, Special Benefit AD No. A2, 5.80%,
09/01/01 ......................................................................... 102,693
Sunline Transport Agency, COP, Transport Finance Corp.,
450,000 Series B, 5.50%, 07/01/03 ....................................................... 432,846
445,000 Series B, 5.75%, 07/01/06 ....................................................... 422,083
100,000 Susanville Public Financing Authority Revenue, Series A, AMBAC Insured, 5.90%,
09/01/02 ......................................................................... 104,920
Tahoe City PUD, COP, Capital Facilities Project,
$ 290,000 Series B, 6.05%, 06/01/01 ....................................................... $ 293,703
835,000 Series B, 6.15%, 06/01/02 ....................................................... 847,108
545,000 Series B, 6.30%, 06/01/04 ....................................................... 552,734
Tehachapi Cummings County Water District, COP, Capital Improvement Project,
280,000 MBIA Insured, 5.50%, 08/01/04 ................................................... 282,573
300,000 MBIA Insured, 5.60%, 08/01/05 ................................................... 302,745
320,000 MBIA Insured, 5.75%, 08/01/06 ................................................... 324,042
600,000 Temecula RDAR, Tax Allocation, Temecula Redevelopment Project No. 1, Series A,
5.40%, 02/01/04 .................................................................. 580,404
Templeton USD, COP, Measure C, Capital Projects,
375,000 Series A, Phase III, 5.00%, 03/01/03 ............................................ 353,321
580,000 Series A, Phase III, 5.00%, 03/01/05 ............................................ 531,935
100,000 Torrance USD, COP, Series A, 5.85%, 10/01/99 ...................................... 99,361
200,000 Travis USD, Foxboro Elementary School Project, 6.30%, 09/01/02 .................... 202,270
Trinity County PUD, COP, Refunding, Electric District Facilities,
340,000 Series 1993, 5.80%, 04/01/01 .................................................... 332,680
360,000 Series 1993, 5.90%, 04/01/02 .................................................... 351,191
380,000 Series 1993, 6.00%, 04/01/03 .................................................... 370,793
100,000 Tuolumne County COP, Multiple Facilities Project, 5.80%, 06/01/98 ................. 100,019
Ventura County Flood Center District, Zone No. 003, Refunding, Ventura USD, COP,
305,000 Series A, 5.90%, 04/01/04 ....................................................... 303,322
320,000 Series A, 6.00%, 04/01/05 ....................................................... 319,263
340,000 Series A, 6.10%, 04/01/06 ....................................................... 339,166
365,000 Series A, 6.20%, 04/01/07 ....................................................... 364,050
385,000 Series A, 6.30%, 04/01/08 ....................................................... 383,952
410,000 Series A, 6.40%, 04/01/09 ....................................................... 411,184
600,000 Walnut Creek COP, Refunding, John Muir Medical Center, MBIA Insured, 4.80%,
02/15/04 ......................................................................... 566,747
Watsonville RDA, Tax Allocation, Watsonville Redevelopment Project,
510,000 Series 1993, 6.00%, 08/01/02 .................................................... 507,653
540,000 Series 1993, 6.10%, 08/01/03 .................................................... 537,256
Total Investments (Cost $88,808,100) 98.3% ............................. 87,250,881
Other Assets and Liabilities, Net 1.7% ................................. 1,533,879
Net Assets 100.0% ...................................................... $88,784,760
At June 30, 1995, the net unrealized depreciation based on the
cost of investments for income tax purposes of $88,808,100 was as
follows:
Aggregate gross unrealized appreciation for all investments in which there was an
excess of value over tax cost ................................................... $ 435,276
Aggregate gross unrealized depreciation for all investments in which there was an
excess of tax cost over value ................................................... (1,992,495)
---------------
Net unrealized depreciation ..................................................... $ (1,557,219)
===============
</TABLE>
PORTFOLIO ABBREVIATIONS:
1915 ACT - Improvement Bond Act of 1915
ABAG - The Association of Bay Area Governments
AD - Assessment District
AMBAC - American Municipal Bond Assurance Corp.
CDA - Community Development Agency/Authority
CGIC - Capital Guaranty Insurance Co.
COP - Certificate of Participation
FGIC - Financial Guaranty Insurance Co.
FSA - Financial Security Assistance
GO - General Obligation
MBIA - Municipal Bond Investors Assurance Corp.
MFHR - Multi-Family Housing Revenue
MUD - Municipal Utility District
PUD - Public Utility District
RDA - Redevelopment Agency
RDAR - Redevelopment Agency Revenue
RMR - Residential Mortgage Revenue
USD - Unified School District
The accompanying notes are an integral part of these financial statements.
FRANKLIN CALIFORNIA TAX-FREE TRUST
Statement of Investments in Securities and Net Assets, June 30, 1995
<TABLE>
<CAPTION>
Face Value
Amount Franklin California Tax-Exempt Money Fund (Note 1)
Investments 102.4%.............................................................
<S> <C> <C>
$ 2,950,000 b ABAG Finance Authority Nonprofit Corp., COP, Lucile Salter Packard Project, AMBAC
Insured, Weekly VRDN and Put, 3.95%, 08/01/23 ................................. $ 2,950,000
1,328,000 b ABAG Revenue , Pooled Projects, Series 1987, Weekly VRDN and Put, 4.00%,
04/01/97 ...................................................................... 1,328,000
1,000,000 b Alameda County MFMR, Refunding, Series A, Weekly VRDN and Put, 3.95%, 05/15/15 1,000,000
1,800,000 b Big Bear Lake Industrial Revenue, Southwest Gas Corp. Project, Series A, Weekly
VRDN and Put, 4.10%, 12/01/28 ................................................. 1,800,000
1,400,000 b Burbank RDA, MFR, Series A, Weekly VRDN and Put, 3.85%, 11/01/10 ............... 1,400,000
2,865,000 b Butte County Housing Authority MFR, Pine Tree Apartments Project, Weekly VRDN
and Put, 4.00%, 12/01/10 ...................................................... 2,865,000
1,200,000 b California Dept. of Water Resources, Central Valley Project Revenue, Water Systems
Series N, Weekly VRDN and Put, 4.00%, 12/01/25 ................................ 1,200,000
b California Health Facilities Financing Authority Revenue,
400,000 Catholic Health Care, Series C, MBIA Insured, Weekly VRDN and Put, 3.90%,
07/01/20 .................................................................. 400,000
2,500,000 Children's Hospital, MBIA Insured, Weekly VRDN and Put, 3.85%, 11/01/21.... 2,500,000
3,100,000 Pool Program, Weekly VRDN and Put, 4.10%, 09/01/20 ........................ 3,100,000
1,500,000 Santa Barbara Cottage Hospital, Series B, Weekly VRDN and Put, 3.80%,
09/01/05 .................................................................. 1,500,000
1,300,000 St. Francis Medical Center, Series F, MBIA Insured, Weekly VRDN and Put, 3.90%,
07/01/10 .................................................................. 1,300,000
8,460,000 St. Joseph Health System, Series B, Daily VRDN and Put, 4.10%, 07/01/13 ... 8,460,000
400,000 Sutter Health, Series A, Daily VRDN and Put, 4.05%, 03/01/20 .............. 400,000
500,000 Sutter Health, Series A, Daily VRDN and Put, 4.10%, 03/01/20 .............. 500,000
California PCFA, PCR,
225,000 b Anaheim Citrus Products Co. Project, Weekly VRDN and Put, 3.90%, 12/01/95 .. 225,000
2,300,000 Dow Chemical Co. Project, TECP, 2.60%, 07/05/95 ............................ 2,300,000
2,600,000 b Homestake Mining, Series 1984-A, Weekly VRDN and Put, 4.05%, 05/01/04 ...... 2,600,000
4,700,000 b Occidental Geo/Santa Fe Geothermal, Monthly VRDN, Weekly Put, 3.80%, 09/01/13 4,700,000
5,000,000 Refunding, Pacific Gas & Electric Corp., Series C, TECP, 4.00%, 07/05/95 ... 5,000,000
15,000,000 Refunding, Pacific Gas & Electric Corp., Series C, TECP, 4.05%, 07/13/95 ... 15,000,000
9,000,000 Refunding, Pacific Gas & Electric Corp., Series E, TECP, 3.30%, 08/02/95 ... 9,000,000
1,300,000 b Refunding, Shell Oil Co. Project, Series A, Daily VRDN and Put, 4.05%, 10/01/06 1,300,000
400,000 b Refunding, Shell Oil Co. Project, Series A, Daily VRDN and Put, 4.05%, 10/01/07 400,000
900,000 b Refunding, Shell Oil Co. Project, Series A, Daily VRDN and Put, 4.05%, 10/01/08 900,000
4,500,000 b Refunding, Shell Oil Co. Project, Series A, Daily VRDN and Put, 4.05%, 10/01/09 4,500,000
2,200,000 b Refunding, Shell Oil Co. Project, Series A, Daily VRDN and Put, 4.05%, 10/01/10 2,200,000
2,900,000 b Refunding, Shell Oil Co. Project, Series B, Daily VRDN and Put, 4.05%, 10/01/11 2,900,000
5,000,000 b Refunding, Shell Oil Co. Project, Series C, Daily VRDN and Put, 4.05%, 11/01/00 5,000,000
1,000,000 b Reynolds Metals Co. Project, Weekly VRDN and Put, 4.15%, 12/01/15 .......... 1,000,000
22,400,000 b Southern California Edison Co., Series A, Daily VRDN and Put, 4.50%, 02/28/08 22,400,000
California PCFA, PCR, (cont.)
$ 2,700,000 b Southern California Edison Co., Series B, Daily VRDN and Put, 4.50%, 02/28/08 $ 2,700,000
1,500,000 b Southern California Edison Co., Series C, Daily VRDN and Put, 4.50%, 02/28/08 1,500,000
1,000,000 Southern California Edison Co., Series C, TECP, 3.80%, 08/01/95 ............ 1,000,000
5,000,000 b Southern California Edison Co., Series D, Daily VRDN and Put, 4.50%, 02/28/08 5,000,000
2,200,000 Southern California Edison Co., Series D, TECP, 4.10%, 07/20/95 ............ 2,200,000
3,650,000 Southern California Edison Co., Series D, TECP, 4.10%, 07/20/95 ............ 3,650,000
4,400,000 Southern California Edison Co., TECP, 2.50%, 07/11/95 ...................... 4,400,000
b California PCFA, Resource Recovery Revenue,
9,500,000 Atlantic Richfield Co. Project, Series A, Daily VRDN and Put, 4.35%, 12/01/24 9,500,000
800,000 Burney Forest Products Project, Series A, Daily VRDN and Put, 4.35%, 09/01/20 800,000
1,200,000 OMS Equity, Stanislaus Project, Daily VRDN and Put, Daily VRDN and Put, 4.35%,
12/01/17 .................................................................. 1,200,000
8,800,000 b California PCFA, Solid Waste Disposal Revenue, Shell Oil Co. Martinez Project,
Series A, Daily VRDN and Put, 4.30%, 10/01/24 ................................. 8,800,000
19,500,000 b California Public Capital Improvements Financing Authority Revenue, Pooled Project,
Series 1988-C, Quarterly VRDN, Put Option 03/15/95, 3.70%, 06/01/28 ........... 19,500,000
27,870,000 California State RAN, Series C, 5.75%, 04/25/96 ............................... 28,342,234
b California Statewide Communities Development Authority Revenue, COP,
10,000,000 Apartment Development Revenue, Refunding, Subseries A-3, Weekly VRDN and
Put, 4.05%, 05/15/25 ...................................................... 10,000,000
9,000,000 Apartment Development Revenue, Refunding, Subseries A-6, Weekly VRDN and
Put, 3.75%, 05/15/25 ...................................................... 9,000,000
9,700,000 Chevron Co., Daily VRDN and Put, 4.30%, 12/15/24 ........................... 9,700,000
4,000,000 Refunding, House Ear Institution, Daily VRDN and Put, 4.35%, 12/01/18 ...... 4,000,000
b California Statewide Communities Development Corp. Revenue,
2,550,000 American Kleaner, Series C, Weekly VRDN and Put, 3.75%, 12/01/19 ........... 2,550,000
1,700,000 Karcher Property Project, Series C, Weekly VRDN and Put, 3.75%, 12/01/19 ... 1,700,000
California West Basin Municipal Water,
5,000,000 TECP, 3.00%, 07/06/95 ...................................................... 5,000,000
5,000,000 TECP, 2.50%, 07/11/95 ...................................................... 5,000,000
2,545,000 b Chico MFMR, Webb Homes Project, Monthly VRDN, Weekly Put, 3.95%, 01/01/10 ...... 2,545,000
1,700,000 b Chino USD, COP, Refunding, Capital Project, Series B, Weekly VRDN and Put, 4.05%,
09/01/08 ...................................................................... 1,700,000
b Concord MFMR,
8,700,000 Arcadian, Series A, Weekly VRDN and Put, 3.95%, 07/15/18 ................... 8,700,000
500,000 Bel Air Apartments, Issue A, Weekly VRDN and Put, 3.90%, 12/01/16 .......... 500,000
7,400,000 b Contra Costa Transportation Authority, Sales Tax Revenue, Series A, Weekly VRDN
and Put, 3.90%, 03/01/09 ...................................................... 7,400,000
b Duarte RDA, COP,
$ 1,000,000 Johnson Duarte Project, Series B, Weekly VRDN and Put, 4.05%, 12/01/14 ..... $ 1,000,000
1,700,000 Piken Duarte Partnership, Series A, Weekly VRDN and Put, 4.05%, 12/01/14 ... 1,700,000
East Bay MUD,
2,700,000 TECP, 4.00%, 07/13/95 ...................................................... 2,700,000
5,400,000 TECP, 3.60%, 09/11/95 ...................................................... 5,400,000
700,000 b Escondido MFHR, Morning View Terrace, Series A, Weekly VRDN and Put, 3.60%,
02/15/07 ...................................................................... 700,000
1,000,000 b Fontana MFMR, Oakcrest, Series A, Weekly VRDN and Put, 3.95%, 07/15/18 ......... 1,000,000
b Foothill/Eastern Transportation Corridor Agency, Califorinia Toll Road Revenue,
15,400,000 Series B, Weekly VRDN and Put, 3.90%, 01/02/35 ............................. 15,400,000
10,000,000 Series E, Weekly VRDN and Put, 4.25%, 01/02/35 ............................. 10,000,000
b Fremont MFHR,
7,300,000 Creekside Village Apartments, Series D, Weekly VRDN and Put, 4.10%, 09/01/07 7,300,000
900,000 Mission Wells Project, Series E, Weekly VRDN and Put, 4.00%, 09/01/07 ...... 900,000
1,000,000 b Golden Empire Schools Financing Authority, Kern High School District Project, Weekly
VRDN and Put, 4.10%, 12/01/20 ................................................. 1,000,000
3,500,000 b Hayward Housing Authority, MFHR, Foothills Garden Apartments, Series A, Weekly
VRDN and Put, 3.90%, 12/01/06 ................................................. 3,500,000
1,480,000 b Independent Cities Lease Finance Authority Revenue, Pooled Projects, Weekly VRDN
and Put, 4.05%, 06/01/98 ...................................................... 1,480,000
6,500,000 b Indio Housing Authority, MFR, Smoketree Apartments, Series A, Weekly VRDN and
Put, 4.198%, 12/01/07 ......................................................... 6,500,000
b Kern County COP, Kern Public Facilities Project,
2,400,000 Series A, Weekly VRDN and Put, 3.90%, 08/01/06 ............................. 2,400,000
500,000 Series C, Weekly VRDN and Put, 3.90%, 08/01/06 ............................. 500,000
600,000 Series D, Weekly VRDN and Put, 3.90%, 08/01/06 ............................. 600,000
900,000 b Lancaster RDA, MFHR, Westwood Park Apartments, Series 1985-K, Weekly VRDN
and Put, 3.60%, 12/01/07 ...................................................... 900,000
1,000,000 Los Angeles County, Capital Asset Leasing Corp., Leasehold Revenue, Refunding,
AMBAC Insured, 4.25%, 12/01/95 ................................................ 1,002,616
400,000 b Los Angeles County COP, Los Angeles County Museum of Art, Series B, Weekly
VRDN and Put, 4.050%, 11/01/05 ................................................ 400,000
b Los Angeles County Housing Authority, MFHR,
3,100,000 Canyon Country Villas Project, Series H, Weekly VRDN and Put, 4.05%, 12/01/07 3,100,000
1,900,000 Harbor Cove Project, Series E, Weekly VRDN and Put, 3.90%, 10/01/06 ........ 1,900,000
4,500,000 Sand Canyon Ranch Project, Series F, Weekly VRDN and Put, 3.90%, 11/01/06 .. 4,500,000
100,000 b Los Angeles County IDA, IDR, Weekly VRDN and Put, 3.90%, 10/01/04 .............. 100,000
3,000,000 Los Angeles County Local Educational Agencies, COP, TRAN, Series A, 4.50%,
07/06/95 ...................................................................... 3,000,297
$ 6,000,000 b Los Angeles County Metropolitan Transportation Authority Revenue, Union Station-
Gateway, Series A, FSA Insured, Weekly VRDN and Put, 4.05%, 07/01/25 .......... $ 6,000,000
2,050,000 b Los Angeles County Transportation Commission, Sale Tax Revenue, Refunding,
Series A, FGIC Insured, Weekly VRDN and Put, 3.95%, 07/01/12 .................. 2,050,000
b Los Angeles CRDA, COP,
1,000,000 Baldwin Hill Park, Weekly VRDN and Put, 3.80%, 12/01/14 .................... 1,000,000
400,000 Broading Spring Center Program, Weekly VRDN and Put, 3.85%, 07/01/12 ....... 400,000
b Los Angeles MFHR,
3,400,000 Casden Project, Series K, Weekly VRDN and Put, 3.75%, 07/01/10 ............. 3,400,000
4,200,000 Lucas Studios Project, Series D, Weekly VRDN and Put, 3.75%, 12/01/21 ...... 4,200,000
4,050,000 Poinsettia Apartment Project, Series A, Weekly VRDN and Put, 3.85%, 07/01/19 4,050,000
2,500,000 b Moorpark MFR, Refunding, Le Club Apartments Project, Weekly VRDN and Put, 4.00%,
11/01/15 ...................................................................... 2,500,000
1,385,000 M-S-R Public Power Agency, San Juan Project Revenue, Series B, 9.125%, 07/01/95 1,412,700
800,000 b Oakland Health Facilities Revenue, Children's Medical Hospital, Weekly VRDN and
Put, 4.05%, 07/01/08 .......................................................... 800,000
2,700,000 b Oceanside MFMR, Riverview Springs Apartments, Series A, Weekly VRDN and Put,
4.55%, 07/01/20 ............................................................... 2,700,000
b Ontario MFR,
1,900,000 Park Center Partners Project, Series A, Weekly VRDN and Put, 3.853%, 08/01/07 1,900,000
6,700,000 Refunding, Rental Housing, Series A, Weekly VRDN and Put, 4.14%, 03/01/18 .. 6,700,000
1,830,000 Refunding, Rental Housing, Series B, Weekly VRDN and Put, 4.14%, 03/01/18 .. 1,830,000
1,190,000 b Ontario RDA, MFHR, Daisy XX Association, Ltd. Project, Weekly VRDN and Put,
3.60%, 11/01/04 ............................................................... 1,190,000
b Orange County Apartment Development Revenue,
1,600,000 Bear Brand Apartments, Series 1985-Z, Weekly VRDN and Put, 4.45%, 11/01/07 . 1,600,000
1,600,000 Issue I, Park Ridge, Weekly VRDN and Put, 4.25%, 11/01/08 .................. 1,600,000
100,000 Jessy L. Frost Project, Issue B, Weekly VRDN and Put, 4.10%, 03/01/09 ...... 100,000
4,700,000 Monarch Bay Apartments Project, Issue T, Weekly VRDN and Put, 4.60%,
10/01/07 .................................................................. 4,700,000
9,250,000 Refunding, The Lakes Projects, Series A, Weekly VRDN and Put, 4.05%,
12/01/06 .................................................................. 9,250,000
9,500,000 Riverbend Apartments Project, Weekly VRDN and Put, 4.75%, 04/01/06 ......... 9,500,000
1,000,000 Robinson Ranch Apartments Project, Series 1985-Y, Weekly VRDN and Put,
4.60%, 11/01/08 ........................................................... 1,000,000
3,400,000 Vintage Woods, Series E, Weekly VRDN and Put, 4.75%, 11/01/08 .............. 3,400,000
3,000,000 Vista Verde Apartments, Weekly VRDN and Put, 4.15%, 08/01/18 ............... 3,000,000
1,150,000 b Orange County HDAR, Lantern Pines Apartments Projects, Weekly VRDN and Put,
4.208%, 12/01/07 .............................................................. 1,150,000
390,000 b Oxnard RDA, COP, Channel Islands Business Center, Weekly VRDN and Put,
4.625%, 07/01/05 .............................................................. 390,000
b Palm Springs CRDA, COP,
$ 1,100,000 Hotel No. 2, Weekly VRDN and Put, 4.55%, 12/01/14 .......................... $ 1,100,000
900,000 Hotel No. 3, Weekly VRDN and Put, 4.55%, 12/01/14 .......................... 900,000
3,715,000 Palomar, Pomerado Hospital District Revenue, Refunding, MBIA Insured, 9.25%,
05/01/96...................................................................... 3,995,371
900,000 b Pasadena COP, Rose Bowl Improvement Project, Weekly VRDN and Put, 4.00%,
12/01/11 ...................................................................... 900,000
1,500,000 b Pico Rivera RDA, COP, Crossroad Plaza Project, Weekly VRDN and Put, 3.90%,
12/01/10 ...................................................................... 1,500,000
12,850,000 b Redlands MFHR, Refunding, Parkview Terrace, Series A, Weekly VRDN and Put,
3.95%, 02/01/16 ............................................................... 12,850,000
2,300,000 b Richmond Tax & Revenue Anticipation Notes, Daily VRDN and Put, 4.20%, 08/07/95 2,300,000
2,700,000 b Riverside County COP, Riverside County Public Facilities, Series B, Weekly VRDN
and Put, 4.10%, 12/01/15 ..................................................... 2,700,000
b Riverside County IDA, IDR,
1,500,000 Calavo Growers, Weekly VRDN and Put, 4.15%, 09/01/05 ....................... 1,500,000
1,050,000 Spaulding Project, Issue B, Weekly VRDN and Put, 4.10%, 07/05/19 ........... 1,050,000
9,400,000 b Roseville Finance Authority Hospital, Lease Revenue, Series A, Roseville Hospital,
Weekly VRDN and Put, 4.00%, 10/01/14 .......................................... 9,400,000
3,900,000 b Sacramento County COP, Administration Center and Court House Project, Weekly
VRDN and Put, 3.65%, 06/01/20 ................................................. 3,900,000
1,100,000 b
Sacramento County COP, Telecommunications Project, Weekly VRDN and Put, 3.55%,
06/01/96 ...................................................................... 1,100,000
5,000,000 b Sacramento County MFR, Various Housing Projects, Smoketree, Series A, Weekly
VRDN and Put, 3.95%, 04/15/10................................................. 5,000,000
2,800,000 Sacramento MUD, Electric Revenue, Series Q, 7.50%, 05/01/96 ................... 2,938,275
Sacramento MUD,
11,000,000 TECP, 4.05%, 07/05/95 ...................................................... 11,000,000
8,000,000 TECP, 2.60%, 07/11/95 ...................................................... 8,000,000
4,267,000 TECP, 4.10%, 07/20/95 ...................................................... 4,267,000
4,000,000 TECP, 3.80%, 08/01/95 ...................................................... 4,000,000
2,200,000 TECP, 3.35%, 10/11/95 ...................................................... 2,200,000
b Salinas City Apartment Development Revenue,
2,000,000 Brentwood Gardens, Series 1985-A, Weekly VRDN and Put, 3.60%, 03/01/05 ..... 2,000,000
3,000,000 Mariner Village, Series 1985-B, Weekly VRDN and Put, 3.60%, 04/01/05 ....... 3,000,000
b San Bernardino,
$ 2,150,000 Western Properties Project I, Weekly VRDN and Put, 3.90%, 02/01/05 ......... $ 2,150,000
1,000,000 Western Properties Project II, Weekly VRDN and Put, 3.90%, 05/01/05 ........ 1,000,000
900,000 Western Properties Project III, Weekly VRDN and Put, 3.90%, 08/01/05 ....... 900,000
1,600,000 Western Properties Project IV, Weekly VRDN and Put, 3.90%, 08/01/05 ........ 1,600,000
2,550,000 Western Properties Project V, Weekly VRDN and Put, 3.90%, 08/01/05 ......... 2,550,000
2,300,000 Woodview Apartments Project, Series I, Weekly VRDN and Put, 3.60%, 04/01/07 2,300,000
20,000,000 c San Bernardino TRAN, 4.25%, 07/05/96 ........................................... 20,105,200
San Diego IDR, Adjustment Refunding, San Diego Gas and Electric,
4,000,000 Series A, TECP, 3.05%, 09/01/95 ............................................ 4,000,000
4,000,000 Series B, TECP, 3.35%, 08/03/95 ............................................ 4,000,000
b San Diego MFMR, California Housing Authority,
2,500,000 La Cima Apartments, Series K, Weekly VRDN and Put, 4.00%, 12/01/08 ......... 2,500,000
1,000,000 Refunding, Paseo Point Apartments, Series A, Weekly VRDN and Put, 4.30%,
08/01/15 .................................................................. 1,000,000
6,900,000 b San Diego MFMR, Refunding, University Town Center Apartments, Weekly VRDN and
Put, 4.20%, 10/01/15 .......................................................... 6,900,000
900,000 b San Dimas RDA, Commercial Development Revenue, San Dimas Commercial Center,
Monthly VRDN and Put, 3.85%, 12/01/13 ......................................... 900,000
7,100,000 b San Dimas RDA, COP, San Dimas Station I Project, Weekly VRDN and Put, 3.85%,
12/01/05 ...................................................................... 7,100,000
4,600,000 b San Francisco City and County MFHR, Winterland Project, Series C, Weekly VRDN
and Put, 3.90%, 06/01/06 ...................................................... 4,600,000
b San Francisco City and County RDA, MFR,
5,400,000 Bayside Village Project, Series B, Weekly VRDN and Put, 4.15%, 12/01/05 .... 5,400,000
5,600,000 Bayside Village Project, Series D, Weekly VRDN and Put, 4.15%, 12/01/05 .... 5,600,000
2,615,000 Rincon Center Project No. 8, Weekly VRDN and Put, 3.90%, 12/01/06 .......... 2,615,000
2,000,000 b San Francisco City and County RDA, Refunding, South Beach Harbor Project, Weekly
VRDN and Put, 4.182%, 12/01/16 ................................................ 2,000,000
2,200,000 b San Joaquin County Transportation Authority, Sales Tax Revenue, Weekly VRDN and
Put, 4.05%, 04/01/11 .......................................................... 2,200,000
b San Jose MFMR,
600,000 Fairway Glen, Series A, FGIC Insured, Weekly VRDN and Put, 3.90%, 11/01/07 . 600,000
600,000 Foxchase, Series B, FGIC Insured, Weekly VRDN, 3.90%, 11/01/07 ............. 600,000
1,000,000 Somerset Park Apartment Project, Weekly VRDN and Put, 3.90%, 11/01/17 ...... 1,000,000
1,050,000 b San Mateo County COP, Capital Projects, Series B, Weekly VRDN and Put, 3.95%,
07/01/98 ...................................................................... 1,050,000
2,950,000 b San Mateo County Housing Authority, MFHR, Pacific Oaks Apartment Project, Weekly
VRDN and Put, 4.05%, 07/01/17 ................................................. 2,950,000
$ 2,100,000 b Santa Ana Health Facilities Revenue, Multi-Modal Town & Country Project, Daily
VRDN and Put, 4.35%, 10/01/20 ................................................. $ 2,100,000
7,500,000 b Santa Clara County Apartment Development Revenue, Lincoln-Pajaro Apartment
Project, Series A, Weekly VRDN and Put, 4.25%, 01/01/97 ....................... 7,500,000
1,000,000 b Santa Clara County, MFHR, Grove Garden Apartments, Series A, Weekly VRDN and
Put, 3.90%, 03/01/17 .......................................................... 1,000,000
100,000 b Santa Clara Electric Revenue, Series A, Weekly VRDN and Put, 4.05%, 07/01/10 ... 100,000
8,500,000 b Simi Valley MFHR, Lincoln Wood Ranch, Weekly VRDN and Put, 4.00%, 06/01/10 ..... 8,500,000
500,000 b South San Francisco MFR, Magnolia Plaza Apartments, Series A, Weekly VRDN and
Put, 4.05%, 05/01/17 .......................................................... 500,000
2,585,000 Southern California Public Power Authority Revenue, Refunding, Palo Verde Project,
Series A, 5.90%, 07/01/95 ..................................................... 2,585,000
27,600,000 b Southern Public Power Authority Revenue, Refunding, Transmission Project, AMBAC
Insured, Weekly VRDN and Put, 3.90%, 07/01/19 ................................. 27,600,000
9,400,000 b Suisun City MFMR, Housing Authority, Village Green Apartments, Seires A, Weekly
VRDN and Put, 3.95%, 06/15/18 ................................................. 9,400,000
1,000,000 b Union City MFHR, Refunding, Skylark Apartments, Project B, Weekly VRDN and Put,
4.00%, 11/01/07 ............................................................... 1,000,000
6,975,000 b Visalia COP, Partner Visalia Convention Center Expansion, Weekly VRDN and Put,
4.70%, 12/01/15 ............................................................... 6,975,000
Total Investments (Cost $657,801,693) 102.4% ........................ 657,801,693
Liabilities in Excess of Other Assets, Net (2.4)% ................... (15,644,359)
Net Assets 100.0% ................................................... $642,157,334
</TABLE>
At June 30, 1995, there was no unrealized appreciation or depreciation for
financial statement or income tax purposes.
PORTFOLIO ABBREVIATIONS:
ABAG - The Association of Bay Area Governments
AMBAC - American Municipal Bond Assurance Corp.
COP - Certificate of Participation
CRDA - Community Redevelopment Agency
FGIC - Financial Guaranty Insurance Co.
FSA - Financial Security Assistance
HDAR - Housing Development Authority Revenue
IDA - Industrial Development Agency
IDR - Industrial Development Revenue
MBIA - Municipal Bond Investors Assurance Corp.
MFHR - Multi-Family Housing Revenue
MFMR - Multi-Family Mortgage Revenue
MFR - Multi-Family Revenue
MUD - Municipal Utility District
PCFA - Pollution Control Financing Authority
PCR - Pollution Control Revenue
RAN - Revenue Anticipation Notes
RDA - Redevelopment Agency
TECP - Tax-Exempt Commercial Paper
TRAN - Tax and Revenue Anticipation Notes
USD - Unified School District
bVariable rate demand notes (VRDN's) are tax-exempt obligations which contain a
floating or variable interest rate adjustment formula and an unconditional right
of demand to receive payment of the principal balance plus accrued interest upon
short notice prior to specified dates. The interest rate may change on specified
dates in relationship with changes in a designated rate (such as the prime
interest rate or U.S. Treasury bills rate.
cSee Note 1(i) regarding securities purchased on a when-issued basis.
The accompanying notes are an integral part of these financial statements.
FRANKLIN CALIFORNIA TAX-FREE TRUST
Financial Statements
Statements of Assets and Liabilities
June 30, 1995
<TABLE>
<CAPTION>
Franklin Franklin California Franklin
California Intermediate-Term California
Insured Tax-Free Tax-Free Tax-Exempt
Income Fund Income Fund Money Fund
------------ ------------ ----------
Assets:
<S> <C> <C> <C>
Investments in securities:
At identified cost ........................................ $1,399,813,333 $88,808,100 $657,801,693
============ ============ ==========
At value .................................................. 1,455,531,733 87,250,881 657,801,693
Cash ....................................................... 1,983,651 222,066 288,934
Receivables:
Interest .................................................. 27,260,856 1,464,197 4,544,736
Capital shares sold ....................................... 3,781,723 10,753 --
Investment securities sold ................................ 20,000 15,000 --
------------ ------------ ----------
Total assets .......................................... 1,488,577,963 88,962,897 662,635,363
------------ ------------ ----------
Liabilities:
Payables:
Investment securities purchased on a
when-issued basis (Note 1) ................................. 11,202,800 -- 20,105,200
Distributions payable to shareholders ..................... 2,370,941 129,836 35,633
Management fees ........................................... 573,319 13,571 254,896
Distribution fees ......................................... 188,355 14,383 --
Capital shares repurchased ................................ 5,532,671 3,010 --
Shareholder servicing costs ............................... 13,600 1,249 40,000
Accrued expenses and other liabilities ..................... 109,423 16,088 42,300
------------ ------------ ----------
Total liabilities ..................................... 19,991,109 178,137 20,478,029
------------ ------------ ----------
Net assets, at value......................................... $1,468,586,854 $88,784,760 $642,157,334
============ ============ ==========
Net assets consist of:
Undistributed net investment income........................ $ 1,160,535 $ 135,555 $ --
Unrealized appreciation (depreciation) on investments ..... 55,718,400 (1,557,219) --
Accumulated net realized loss.............................. (8,722,374) (797,291) --
Class I capital shares..................................... 1,419,917,422 91,003,715 642,157,334
Class II capital shares.................................... 512,871 -- --
------------ ------------ ----------
Net assets, at value......................................... $1,468,586,854 $88,784,760 $642,157,334
============ ============ ==========
Class I shares:
Net assets, at value ....................................... $1,468,080,003 $88,784,760 $642,157,334
============ ============ ==========
Shares outstanding ......................................... 122,804,197 8,556,518 642,157,334
============ ============ ==========
Net asset value per share .................................. $11.95* $10.38* $1.00
============ ============ ==========
Maximum offering price per share (100/95.75, 100/97.75, 100/100
of net asset value per share, respectively)................. $12.48 $10.62 $1.00
============ ============ ==========
Class II shares:
Net assets, at value ....................................... $506,851 -- --
============ ============ ==========
Shares outstanding ......................................... 42,260 -- --
============ ============ ==========
Net asset value per share .................................. $11.99* -- --
============ ============ ==========
Maximum offering price per share (100/99
of net asset value per share) $12.11 -- --
============ ============ ==========
*Redemption price per share is equal to net asset value less any applicable
contingent deferred sales charge.
FRANKLIN CALIFORNIA TAX-FREE TRUST Financial Statements (cont.)
Statements of Operations
for the year ended June 30, 1995
Franklin Franklin California Franklin
California Intermediate-Term California
Insured Tax-Free Tax-Free Tax-Exempt
Income Fund Income Fund Money Fund
---------- ----------- ---------
Investment income:
Interest (Note 1) ............................................. $ 91,346,293 $5,333,828 $24,770,583
---------- ----------- ---------
Expenses:
Management fees, net (Note 5) ................................. 6,703,306 119,684 3,419,037
Distribution fees - Class I (Note 5) .......................... 1,010,395 73,015 --
Distribution fees - Class II (Note 5) ......................... 261 -- --
Shareholder servicing costs (Note 5) .......................... 171,254 14,387 474,489
Reports to shareholders ....................................... 201,274 18,349 381,408
Custodian fees ................................................ 132,366 8,611 72,462
Professional fees ............................................. 60,960 5,427 33,448
Registration and filing fees .................................. 54,199 19,200 33,384
Pricing fees .................................................. 65,356 49,032 191
Trustees' fees and expenses ................................... 63,143 1,299 31,526
Insurance ..................................................... 6,738 -- --
Other ......................................................... 47,327 3,262 26,982
---------- ----------- ---------
Total expenses ........................................... 8,516,579 312,266 4,472,927
---------- ----------- ---------
Net investment income ................................ 82,829,714 5,021,562 20,297,656
---------- ----------- ---------
Realized and unrealized gain (loss) on investments:
Net realized gain(loss) ....................................... 5,592,380 (465,495) (14,563)
Net unrealized appreciation ................................... 18,768,345 1,696,820 --
---------- ----------- ---------
Net realized and unrealized gain (loss) in investments ......... 24,360,725 1,231,325 (14,563)
---------- ----------- ---------
Net increase in net assets resulting from operations............ $107,190,439 $6,252,887 $20,283,093
========== =========== =========
FRANKLIN CALIFORNIA TAX-FREE TRUST Financial Statements (cont.)
Statements of Changes in Net Assets
for the years ended June 30, 1995 and 1994
Franklin California Insured Franklin California Intermediate- Franklin California
Tax-Free Income Fund Term Tax-Free Income Fund Tax-Exempt Money Fund
----------------------- ------------------- ---------------------
1995 1994 1995 1994 1995 1994
----------- ----------- --------- --------- ---------- ----------
Increase (decrease) in net assets:
Operations:
<S> <C> <C> <C> <C> <C> <C>
Net investment income .. $ 82,829,714 $ 81,945,583 $ 5,021,562 $ 3,974,168 $ 20,297,656 $ 13,258,958
Net realized gain (loss) from
security transactions ... 5,592,380 (5,270,661) (465,495) (331,796) (14,563)+ --
Net unrealized apprecia-
tion (depreciation) on
investments .............. 18,768,345 (66,587,573) 1,696,820 (3,691,378) -- --
----------- ----------- --------- --------- ---------- ----------
Net increase
(decrease) in net
assets resulting
from operations .......... 107,190,439 10,087,349 6,252,887 (49,006) 20,283,093 13,258,958
Distributions to share-
holders from undistributed
net investment income:
Class I (Note 7) ..... (82,377,546) (81,772,341) (4,925,765) (3,928,197) (20,283,093)+ (13,258,958)
Class II (Note 7) .... (1,771) -- -- -- -- --
Increase (decrease) in net
assets from capital share
transactions (Note 3) .... (7,045,433) 158,883,262 (6,557,744) 55,161,269 (111,964,093) 101,257,180
----------- ----------- --------- --------- ---------- ----------
Net increase
(decrease) in
net assets ............... 17,765,689 87,198,270 (5,230,622) 51,184,066 (111,964,093) 101,257,180
Net assets:
Beginning of year........ 1,450,821,165 1,363,622,895 94,015,382 42,831,316 754,121,427 652,864,247
----------- ----------- --------- --------- ---------- ----------
End of year.............. $1,468,586,854 $1,450,821,165 $88,784,760 $94,015,382 $642,157,334 $754,121,427
=========== =========== ========= ========= ========== ==========
Undistributed net investment
income included in net
assets:
Beginning of year....... $ 710,138 $ 536,896 $ 39,758 $ -- $ -- $ --
=========== =========== ========= ========= ========== ==========
End of year............. $ 1,160,535 $ 710,138 $ 135,555 $ 39,758 $ -- $ --
=========== =========== ========= ========= ========== ==========
+Distributions were decreased by net realized loss from security transactions of $14,563.
</TABLE>
The accompanying notes are an integral part of these financial statements.
FRANKLIN CALIFORNIA TAX-FREE TRUST
Notes to Financial Statements
1. SIGNIFICANT ACCOUNTING POLICIES
Franklin California Tax-Free Trust (the "Trust") is an open-end management
investment company (mutual fund) registered under the Investment Company Act of
1940 as amended. The Trust currently consists of three separate Funds: Franklin
California Insured Tax-Free Income Fund (the "Insured Fund"), Franklin
California Intermediate-Term Tax-Free Income Fund (the "Intermediate Fund") and
Franklin California Tax-Exempt Money Fund (the "Money Fund"). Each of the Funds
issues a separate series of the Trust's shares and maintains a totally separate
investment portfolio. The Trust's Intermediate Fund is non-diversified, although
the other Funds are diversified.
The Insured Fund offers two classes of shares, Class I and Class II. Class I
shares are sold with a higher front-end sales charge. Class II shares are sold
with a lower front-end sales charge, but may be subject to a contingent deferred
sales charge. Each class of shares has the same rights, except with respect to
the effect of the respective sales charges, the distribution fees borne by each
class, voting rights on matters affecting a single class and the exchange
privilege of each class.
The offering of Class II shares began May 1, 1995, at which time all previously
outstanding shares became Class I shares. Realized and unrealized gains or
losses and net investment income, other than class specific expenses, are
allocated daily to each class of shares based upon the relative proportion of
net assets of each class.
The following is a summary of significant accounting policies consistently
followed by the Trust in the preparation of its financial statements. The
policies are in conformity with generally accepted accounting principles for
investment companies.
a. Security Valuations: Tax-free bonds generally trade in the over-the-counter
market rather than on a national securities exchange. Often there are no
transactions in a particular security on any given day. In the absence of a
recorded sale or reported bid and ask prices, information with respect to bond
and note transactions, quotations from bond dealers, market transactions in
comparable securities and various relationships between securities are used to
determine the value of the security. The Trust may utilize a pricing service,
bank or broker/dealer experienced in such matters to perform any of the pricing
functions, under procedures approved by the Board of Trustees. Other securities
for which market quotations are not available, if any, are valued in accordance
with procedures established by the Board of Trustees.
Portfolio securities in the Money Fund are valued at amortized cost, which
approximates value. The Money Fund must maintain a dollar weighted average
maturity of 90 days or less and only purchase instruments having remaining
maturities of 397 days or less. If the Fund's portfolio has a remaining weighted
average maturity of greater than 90 days, the portfolio will be stated at value
based on recorded closing sales on a national securities exchange or, in the
absence of a recorded sale, within the range of the most recent quoted bid and
ask prices. The Trustees have established procedures designed to stabilize, to
the extent reasonably possible, the Fund's price per share as computed for the
purpose of sales and redemptions at $1.00.
b. Municipal Bonds or Notes with "Puts": The Trust has purchased municipal bonds
or notes with the right to resell the bonds or notes to the seller at an agreed
upon price or yield on a specified date or within a specified period (which will
be prior to the maturity date of the bonds or notes). Such a right to resell is
commonly known as a "put". In determining the weighted average maturity of the
Fund's portfolio, municipal bonds and notes as to which the Fund holds a put
will be deemed to mature on the last day on which the put may be exercisable.
c. Variable Rate Demand Notes: The Trust has invested in certain variable
interest rate demand notes with maturities greater than 397 days but which are
redeemable at specified intervals upon demand. The maturity of these instruments
for the purpose of calculating the portfolio's weighted average maturity is
considered to be the lesser of the period until the interest rate is adjusted or
until the principal can be recovered by demand.
1. SIGNIFICANT ACCOUNTING POLICIES (cont.)
d. Income Taxes: The Trust intends to continue to qualify for the tax treatment
applicable to regulated investment companies under the Internal Revenue Code and
to make the requisite distributions to its shareholders which will be sufficient
to relieve it from income and excise taxes. Therefore, no income tax provision
is required. Each Fund is treated as a separate entity in the determination of
compliance with the Internal Revenue Code.
e. Security Transactions: Security transactions are accounted for on the date
the securities are purchased or sold (trade date). Realized gains and losses on
security transactions are determined on the basis of specific identification for
both financial statement and income tax purposes.
f. Investment Income, Expenses and Distributions: For the Insured and the
Intermediate Funds, distributions to shareholders are recorded on the
ex-dividend date. Interest income and estimated expenses are accrued daily. Bond
discount and premium, if any, are amortized as required by the Internal Revenue
Code. The Funds normally declare dividends from their net investment income
daily and distribute monthly. Daily allocations of net investment income will
commence on the date of receipt of an investor's funds. Dividends are normally
declared each day the New York Stock Exchange is open for business and are equal
to an amount per day set from time to time by the Board of Trustees, and are
payable to shareholders of record at the beginning of business on the ex-date.
Once each month, dividends are reinvested in additional shares of the Funds or
paid in cash as requested by the shareholders.
For the Money Fund, net investment income includes income, calculated on an
accrual basis, amortization of original issue and market discount or premium, if
any, and estimated expenses which are accrued daily. The total available for
dividends is computed daily and includes net investment income, plus or minus
any gains or losses on security transactions and changes in unrealized portfolio
appreciation or depreciation, if any.
g. Insurance: Each long-term municipal security in the Insured Fund is insured
as to the scheduled payments of interest and principal by either a mutual fund
Portfolio Insurance Policy, a Secondary Market Insurance Policy, a New Issue
Insurance Policy or has collateral guaranteed by an agency of the U.S.
government. The providers of secondary market and new issue insurance are rated
"AAA" by Standard & Poor's.
Premiums for a mutual fund Portfolio Insurance Policy or a Secondary Market
Insurance Policy are paid from the Insured Fund's assets. Premiums for a mutual
fund Portfolio Insurance Policy [effective only so long as the Insured Fund is
in existence, Financial Guaranty (the insurer) remains in business and the
municipal security insured under the policy continues to be held by the Insured
Fund] will reduce the current income on the portfolio by the amount thereof.
Premiums paid by the Insured Fund for a Secondary Market Insurance Policy
(effective so long as the security so insured is outstanding and the insurer
remains in business) are added to the cost basis of the municipal security
insured and are not considered an expense of the Insured Fund. Premiums for a
New Issue Insurance Policy (effective so long as the security so insured is
outstanding and the insurer remains in business) are paid in advance by the
insured security issuer or by another third party prior to acquisition of the
security by the Insured Fund and are not considered an expense of the Insured
Fund.
h. Expense Allocation: Common expenses incurred by the Trust are allocated among
the Funds based on the ratio of net assets of each Fund to the combined net
assets. In all other respects, expenses are charged to each Fund as incurred on
a specific identification basis.
i. Securities Purchased on a When-Issued Basis or Delayed Delivery Basis: The
Trust may trade securities on a when-issued or delayed delivery basis, with
payment and delivery scheduled for a future date. These transactions are subject
to market fluctuations and are subject to the risk that the value at delivery
may be more or less than the trade date purchase price. Although the Trust will
generally purchase these securities with the intention of acquiring such
securities, they may sell such securities before the settlement date. These
securities are identified on the accompanying Statement of Investments in
Securities and Net Assets. The Trust has set aside sufficient investment
securities as collateral for these purchase commitments.
2. DISTRIBUTIONS AND CAPITAL LOSS CARRYOVERS
At June 30, 1995, for tax purposes, the Insured and the Intermediate Funds had
capital loss carryovers as follows:
<TABLE>
<CAPTION>
Franklin California Franklin California
Insured Tax-Free Intermediate-Term
Income Fund Tax-Free Income Fund
---------------- ----------------
<S> <C> <C>
1997 ........ $1,847,356 $ --
1998 ........ 302,438 --
1999 ........ 319 --
2001 ........ 1,301,600 --
2002 ........ 5,270,661 331,796
2003 ........ -- 465,495
---------------- ----------------
$8,722,374 $797,291
================ ================
</TABLE>
For tax purposes, the aggregate cost of securities and unrealized appreciation
(depreciation) of the Trust are the same as for financial statement purposes at
June 30, 1995.
3. TRUST SHARES
At June 30, 1995, there was an unlimited number of no par value shares of
beneficial interest authorized. Transactions in the Trust shares were as
follows:
Class I Shares:
<TABLE>
<CAPTION>
Franklin California Insured Tax-Free Income Fund
Year Ended June 30,
1995 1994
--------------------- ----------------------
Shares Amount Shares Amount
--------- ----------- --------- -----------
<S> <C> <C> <C> <C>
Shares sold...................................... 10,633,997 $ 125,181,289 23,548,766 $ 290,660,914
Shares issued in reinvestment of distributions... 2,826,303 33,085,583 2,454,027 30,148,474
Shares redeemed.................................. (14,271,062) (165,740,287) (12,217,008) (149,116,324)
Changes from exercise of exchange privilege:
Shares sold..................................... 11,532,096 133,939,319 10,634,887 130,590,567
Shares redeemed................................. (11,490,276) (134,024,208) (11,740,527) (143,400,369)
--------- ----------- --------- -----------
Net increase (decrease).......................... (768,942) $ (7,558,304) 12,680,145 $ 158,883,262
========= =========== ========= ===========
Class II Shares:
Franklin California Insured
Tax-Free Income Fund
May 1, 1995 to June 30, 1995
Shares Amount
----------- -----------
<S> <C> <C>
Shares sold.................................................................... 42,176 $511,865
Shares issued in reinvestment of distributions................................. 84 1,006
----------- -----------
Net increase .................................................................. 42,260 $512,871
=========== ===========
3. TRUST SHARES (cont.)
Franklin California Intermediate-Term Tax-Free Income Fund
Years Ended June 30,
1995 1994
---------------------- ----------------------
Shares Amount Shares Amount
--------- ----------- --------- -----------
<S> <C> <C> <C> <C>
Shares sold...................................... 1,204,356 $ 12,309,531 4,120,511 $ 43,780,014
Shares issued in reinvestment of distributions... 287,710 2,922,503 208,209 2,193,337
Shares redeemed.................................. (2,148,804) (21,756,389) (935,219) (9,787,277)
Changes from exercise of exchange privilege
Shares sold..................................... 2,325,201 23,281,750 3,485,516 36,969,564
Shares redeemed................................. (2,329,548) (23,315,139) (1,721,610) (17,994,369)
--------- ----------- --------- -----------
Net increase (decrease).......................... (661,085) $ (6,557,744) 5,157,407 $ 55,161,269
========= =========== ========= ===========
Franklin California
Tax-Exempt Money Fund
Years Ended June 30,
1995 1994
----------- -----------
Amount Amount
----------- -----------
Transactions in capital stock at $1.00 per share were as follows:
<S> <C> <C>
Shares sold.................................................................... $602,511,619 $ 664,176,200
Shares issued in reinvestment of distributions................................. 20,299,685 13,220,211
Shares redeemed................................................................ (763,427,966) (805,971,559)
Changes from exercise of exchange privilege
Shares sold................................................................... 450,373,225 667,038,282
Shares redeemed............................................................... (421,720,656) (437,205,954)
----------- -----------
Net increase (decrease) ....................................................... $(111,964,093) $ 101,257,180
=========== ===========
4. PURCHASES AND SALES OF SECURITIES
Purchases and sales of securities (excluding purchases and sales of short-term
securities) for the year ended June 30, 1995, were as follows:
Franklin California Insured Franklin California Intermediate- Franklin California
Tax-Free Income Fund Term Tax-Free Income Fund Tax-Exempt Money Fund
--------------------------- ---------------------------- ------------------------
<S> <C> <C> <C>
Purchases ......................... $167,128,780 $9,968,604 --
=========================== ============================ ========================
Sales ............................. $180,248,570 $16,080,356 --
=========================== ============================ ========================
</TABLE>
5. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
Franklin Advisers, Inc., under the terms of a management agreement, provides
investment advice, administrative services, office space and facilities to each
Fund, and receives fees computed monthly on the net assets of the Insured Fund
and the Intermediate Fund on the last day of the month at an annualized rate of
5/8 of 1% of the net assets, and receives fees computed daily based on the net
assets of the Money Fund at 1/584 of 1% (approximately 5/8 of 1% per year) of
the net assets. The annual rate of fees for all Funds is reduced on net assets
over $100 million, as follows: 1/2 of 1% per year of net assets in excess of
$100 million up to and including $250 million; and 45/100 of 1% per year of net
assets in excess of $250 million. The terms of the management agreement provide
that aggregate annual expenses of the Funds be limited to the extent necessary
to comply with the limitations set forth in the laws, regulations and
administrative interpretations of the states in which the Funds' shares are
registered. For the year ended June 30, 1995, the Funds' expenses did not exceed
these limitations; however, Franklin Advisers, Inc. agreed in advance to waive
$468,112 of the management fees for the Intermediate Fund.
In its capacity as underwriter for the shares of the Insured Fund and the
Intermediate Fund, Franklin/Templeton Distributors, Inc., receives commissions
on sales of the Funds' shares. Commissions are deducted from the gross proceeds
received from the sale of the Insured Fund's and Intermediate Fund's shares and
as such are not expenses of the Trust. Franklin/Templeton Distributors, Inc.,
may also make payments, out of its own resources, to the dealers for certain
sales of Class I and Class II shares. Commissions received by Franklin/Templeton
Distributors, Inc. and the amounts paid to other dealers for the year ended June
30, 1995 were as follows:
<TABLE>
<CAPTION>
Franklin
California
Franklin California Insured Intermediate-
Tax-Free Income Fund Term Tax-Free
-----------------
Class I Class II Income Fund
--------- ------ ---------
<S> <C> <C> <C>
Total commissions received ............................................. $3,790,054 $5,060 $177,913
========= ====== =========
Paid to other dealers ................................................. $3,535,447 $10,120 $164,176
========= ====== =========
</TABLE>
Under the terms of a shareholder service agreement with Franklin/Templeton
Investor Services, Inc., the Trust pays costs on a per shareholder account
basis. Such costs incurred by the Insured Fund, the Intermediate Fund and the
Money Fund for the year ended June 30, 1995 were $171,254, $14,387 and $474,489,
respectively, of which $157,118, $13,066 and $471,969, respectively, were paid
to Franklin/Templeton Investor Services, Inc.
Under the terms of a Distribution Plan pursuant to Rule 12b-1 of the Investment
Company Act of 1940, the Intermediate Fund reimburses Franklin/Templeton
Distributors, Inc. in an amount up to .10% per annum of the Fund's average daily
net assets for costs incurred in the promotion, offering and marketing of the
Fund's shares. Fees incurred by the Intermediate Fund under the agreement
aggregated $73,015 for the year ended June 30, 1995. The Money Fund did not
incur any such distribution expenses during the year ended June 30, 1995.
Under the terms of a Distribution Plan pursuant to Rule 12b-1 of the Investment
Company Act of 1940, which was effective May 1 1994 for Class I shares of the
Insured Fund, and which became effective for Class II shares of the Insured Fund
on May 1, 1995, Class I and II shares will reimburse Franklin/Templeton
Distributors, Inc., in an amount up to a maximum of 0.10% and 0.65% per annum,
respectively, of the average daily net assets of each class for costs incurred
in the promotion, offering and marketing of the Class I and II shares. Fees
incurred by the classes under the agreement aggregated $1,010,656 for the year
ended June 30, 1995.
5. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES (cont.)
On December 8, 1994, Franklin Resources, Inc. purchased a $6.6 million face
value unsecured Orange County Tax Revenue Anticipation Note, 4.5%, 07/19/1995
from the Money Fund at an amortized cost of $6,623,125 plus accrued interest of
$127,050. The Fund did not incur a loss as a result of this transaction.
Certain officers and trustees of the Trust are also officers and/or directors of
Franklin/Templeton Distributors, Inc., Franklin Advisers, Inc. and
Franklin/Templeton Investor Services, Inc. all wholly-owned subsidiaries of
Franklin Resources, Inc.
6. CREDIT RISK
There are certain credit risks due to the manner in which the Funds are
invested, which may subject the Funds more significantly to economic changes
occurring in California.
The Portfolio Insurance Policy covering securities held by the Insured Fund is
issued by an issuer rated "AAA" by Standard & Poor's. Only one issuer provides
coverage to the Fund. As a result the Fund may face the risk of a loss if a
change in the solvency of the issuer occurs.
7. FINANCIAL HIGHLIGHTS
Selected data for each share of beneficial interest outstanding throughout the
year by Fund are as follows:
<TABLE>
<CAPTION>
Per Share Operating Performance Ratios/Supplemental Data
Ratio of Ratio of Net
Net Asset Net Realized Distributions Net Asset Net Assets Expenses Investment
Year Value at Net & Unrealized Total From From Net Value at End to Average Income Portfolio
Ended Beginning Investment Gain (Loss) Investment Investment at End Total of Year Net Assets to Average Turnover
June 30 of Year Income on Securities Operations Income of Year Return+ (in 000's) (See Note 5)++ Net Assets Rate
Franklin California Insured Tax-Free Income Fund:
Class I Shares:
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1991 $11.17 $.74 $ .094 $ .834 $(.744) $11.26 7.45% $471,997 .57% 6.48% 4.20%
1992 11.26 .70 .457 1.157 (.747) 11.67 10.32 967,745 .55 6.16 3.50
1993 11.67 .69 .636 1.326 (.696) 12.30 11.47 1,363,623 .53 5.82 8.28
1994 12.30 .68 (.562) .118 (.678) 11.74 .67 1,450,821 .54 5.53 6.98
1995 11.74 .68 .204 .884 (.674) 11.95 7.80 1,468,080 .59 5.77 11.85
Class II Shares:
1995*** 11.88 .11 .103 .213 (.103) 11.99 1.79 507 1.17* 5.03* 11.85
Franklin California Intermediate-Term Tax-Free Income Fund:
1993** 10.00 .29 .550 .840 (.290) 10.55 10.95* 42,831 .09* 4.73* .08
1994 10.55 .54 (.360) .180 (.530) 10.20 1.65 94,015 .25 5.11 14.95
1995 10.20 .54 .170 .710 (.530) 10.38 7.19 88,785 .33 5.34 10.90
7. FINANCIAL HIGHLIGHTS (cont.)
Per Share Operating Performance Ratios/Supplemental Data
Ratio of Ratio of Net
Net Asset Net Realized Distributions Net Asset Net Assets Expenses Investment
Year Value at Net & Unrealized Total From From Net Value at End to Average Income Portfolio
Ended Beginning Investment Gain (Loss) Investment Investment at End Total of Year Net Assets to Average Turnover
June 30 of Year Income on Securities Operations Income of Year Return+ (in 000's) (See Note 5)++ Net Assets Rate
Franklin California Tax-Exempt Money Fund:
1991 $1.00 $.045 $-- $.045 $(.045) $1.00 4.58% $953,738 .57% 4.47% --%
1992 1.00 .031 -- .031 (.031) 1.00 3.17 759,204 .60 3.14 --
1993 1.00 .021 -- .021 (.021) 1.00 2.08 652,864 .62 2.07 --
1994 1.00 .018 -- .018 (.018) 1.00 1.83 754,121 .61 1.82 --
1995 1.00 .029 -- .029 (.029) 1.00 2.94 642,157 .64 2.88 --
</TABLE>
*Annualized
**For the period September 21, 1992 (effective date of registration) to
June 30, 1993.
***For the period May 1, 1995 to June 30, 1995.
+Total return measures the change in value of an investment over the periods
indicated. It is not annualized. It does not include the maximum initial sales
charge or the deferred contingent sales charge.The total return for the
Intermediate Fund, the Money Fund and the Class II shares of the Insured Fund
also assumes reinvestment of dividends and capital gains, if any, at net asset
value. The total return for the Class I shares of the Insured Fund assumes
reinvestment of dividends at the maxiumum offering price and capital gains, if
any, at net asset value. Effective May 1, 1994, with the implementation of the
Rule 12b-1 distribution plan for Class I shares of the Insured Fund, as
discussed in Note 5, the sales charge on reinvested dividends was eliminated.
++During the periods indicated, Franklin Advisers, Inc., the investment manager,
agreed in advance to waive a portion of management fees and made payments of
other expenses of the Intermediate Fund. Had such action not been taken, the
ratio of operating expenses to average net assets would have been .95%
(annualized), .80% and .83%, respectively.
During the fiscal year ended June 30, 1995, the Funds paid distributions from
undistributed net investment income in the amounts shown in the Statement of
Changes in Net Assets. The Funds hereby designate the total amount of these
distributions as exempt-interest dividends under Section 852(b)(5) of the
Internal Revenue Code.
FRANKLIN CALIFORNIA TAX-FREE TRUST
Report of Independent Auditors
To the Shareholders and Board of Trustees
of Franklin California Tax-Free Trust:
We have audited the accompanying statements of assets and liabilities of the
three funds comprising the Franklin California Tax-Free Trust (the Funds),
including each Fund's statement of investments in securities and net assets, as
of June 30, 1995, and the related statements of operations for the year then
ended, the statements of changes in net assets for each of the two years in the
period then ended, and the financial highlights for each of the periods
indicated thereon. These financial statements and financial highlights are the
responsibility of the Funds' management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of June
30, 1995, by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
three funds comprising the Franklin California Tax-Free Trust as of June 30,
1995, the results of their operations for the year then ended, the changes in
their net assets for each of the two years in the period then ended, and the
financial highlights for each of the periods indicated in thereon, in conformity
with generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
San Francisco, California
August 4, 1995
Franklin California Tax-Free Trust
APPENDIX
DESCRIPTION OF GRAPHIC MATERIAL OMITTED FROM EDGAR FILING
(PURSUANT TO ITEM 304(a) of REGULATION S-T)
GRAPHIC MATERIAL (1)
This bar chart shows the comparison between the fund's Class I distribution rate
of 5.38% and the taxable equivalent rate of 10.00%.
GRAPHIC MATERIAL (2)
This bar chart shows the comparison between the fund's Class II distribution
rate of 4.95% and the taxable equivalent rate of 9.20%.
GRAPHIC MATERIAL (3)
The following line graph hypothetically compares the performance of the Franklin
California Insured Tax-Free Income Fund to that of the Lehman Brothers Municipal
Bond Index and the Consumer Price Index (CPI), based on a $10,000 investment
from 9/3/85 to 6/30/95.
<TABLE>
<CAPTION>
Period Ending CA Insured TF LB Muni Index CPI
<S> <C> <C> <C>
9/3/85 10,000 10,000 10,000
9/3/85 9,579 10,000 10,000
9/30/85 9,511 9,900 10,028
10/31/85 9,646 10,240 10,065
11/30/85 9,818 10,607 10,093
12/31/85 10,077 10,701 10,122
1/31/86 10,719 11,331 10,149
2/28/86 11,077 11,781 10,121
3/31/86 11,242 11,784 10,075
4/30/86 11,202 11,794 10,057
5/31/86 11,065 11,601 10,085
6/30/86 11,145 11,712 10,140
7/31/86 11,234 11,783 10,140
8/31/86 11,755 12,311 10,159
9/30/86 11,645 12,342 10,205
10/31/86 11,949 12,555 10,215
11/30/86 12,102 12,804 10,224
12/31/86 12,154 12,768 10,233
1/31/87 12,422 13,152 10,297
2/28/87 12,520 13,217 10,335
3/31/87 12,421 13,077 10,381
4/30/87 11,416 12,420 10,437
5/31/87 11,073 12,358 10,474
6/30/87 11,397 12,721 10,510
7/31/87 11,541 12,851 10,538
8/31/87 11,557 12,879 10,593
9/30/87 10,867 12,404 10,649
10/31/87 10,930 12,448 10,676
11/30/87 11,309 12,772 10,686
12/31/87 11,526 12,958 10,686
1/31/88 12,112 13,419 10,714
2/29/88 12,268 13,561 10,741
3/31/88 11,827 13,404 10,788
4/30/88 11,917 13,506 10,844
5/31/88 11,894 13,467 10,881
6/30/88 12,122 13,663 10,927
7/31/88 12,190 13,752 10,973
8/31/88 12,235 13,764 11,019
9/30/88 12,537 14,013 11,093
10/31/88 12,888 14,260 11,130
11/30/88 12,746 14,129 11,139
12/31/88 12,923 14,273 11,158
1/31/89 13,195 14,568 11,213
2/28/89 13,051 14,402 11,259
3/31/89 13,013 14,368 11,325
4/30/89 13,363 14,708 11,398
5/31/89 13,642 15,014 11,463
6/30/89 13,852 15,218 11,491
7/31/89 13,976 15,425 11,518
8/31/89 13,903 15,274 11,537
9/30/89 13,829 15,228 11,574
10/31/89 13,968 15,414 11,629
11/30/89 14,108 15,684 11,657
12/31/89 14,223 15,813 11,676
1/31/90 14,173 15,738 11,796
2/28/90 14,328 15,878 11,852
3/31/90 14,305 15,883 11,917
4/30/90 14,190 15,769 11,936
5/31/90 14,557 16,113 11,963
6/30/90 14,664 16,254 12,028
7/31/90 14,891 16,495 12,074
8/31/90 14,550 16,256 12,185
9/30/90 14,552 16,265 12,287
10/31/90 14,836 16,560 12,361
11/30/90 15,121 16,893 12,388
12/31/90 15,124 16,967 12,388
1/31/91 15,399 17,194 12,462
2/28/91 15,456 17,344 12,481
3/31/91 15,500 17,351 12,500
4/30/91 15,710 17,583 12,518
5/31/91 15,824 17,740 12,556
6/30/91 15,799 17,722 12,592
7/31/91 15,999 17,938 12,611
8/31/91 16,143 18,175 12,648
9/30/91 16,345 18,411 12,703
10/31/91 16,462 18,577 12,723
11/30/91 16,436 18,629 12,759
12/31/91 16,756 19,030 12,768
1/31/92 16,773 19,073 12,788
2/29/92 16,774 19,079 12,834
3/31/92 16,832 19,087 12,899
4/30/92 16,965 19,257 12,917
5/31/92 17,216 19,484 12,935
6/30/92 17,452 19,811 12,982
7/31/92 18,062 20,406 13,009
8/31/92 17,804 20,206 13,045
9/30/92 17,831 20,337 13,082
10/31/92 17,478 20,138 13,128
11/30/92 17,963 20,498 13,146
12/31/92 18,190 20,707 13,137
1/31/93 18,434 20,947 13,201
2/28/93 18,989 21,706 13,247
3/31/93 18,939 21,476 13,294
4/30/93 19,060 21,693 13,331
5/31/93 19,167 21,814 13,350
6/30/93 19,495 22,178 13,368
7/31/93 19,540 22,207 13,368
8/31/93 19,903 22,669 13,406
9/30/93 20,140 22,927 13,434
10/31/93 20,261 22,971 13,489
11/30/93 20,223 22,769 13,499
12/31/93 20,557 23,249 13,499
1/31/94 20,763 23,514 13,535
2/28/94 20,346 22,905 13,581
3/31/94 19,532 21,973 13,627
4/30/94 19,609 22,160 13,646
5/31/94 19,735 22,353 13,656
6/30/94 19,660 22,216 13,702
7/31/94 20,005 22,623 13,739
8/31/94 20,083 22,702 13,794
9/30/94 19,823 22,368 13,831
10/31/94 19,457 21,970 13,841
11/30/94 19,128 21,572 13,859
12/31/94 19,464 22,047 13,859
1/31/95 20,113 22,678 13,915
2/28/95 20,679 23,338 13,970
3/31/95 20,828 23,606 14,016
4/30/95 20,890 23,634 14,063
5/31/95 21,464 24,388 14,090
6/30/95 21,191 24,176 14,118
</TABLE>
GRAPHIC MATERIAL (4)
This chart shows in pie chart format the fund's securities breakdown by quality
as a percentage of the fund's total net assets.
<TABLE>
<CAPTION>
Portfolio Breakdown on 6/30/95
<S> <C>
AAA 21.0%
AA 4.1%
A 36.5%
BBB 38.3%
BB .1%
</TABLE>
GRAPHIC MATERIAL (5)
This bar chart shows the comparison between the fund's distribution rate of
4.97% and the taxable equivalent rate of 9.24%.
GRAPHIC MATERIAL (6)
The following line graph hypothetically compares the performance of the Franklin
California Intermediate-Term Tax-Free Income Fund to that of the Lehman Brothers
10-Year Municipal Bond Index and the Consumer Price Index (CPI), based on a
$10,000 investment from 10/1/92 to 6/30/95.
<TABLE>
<CAPTION>
Period Ending CA IT TF LB 10YR Muni CPI
<S> <C> <C> <C>
10/1/92 9,775 10,000 10,000
10/31/92 9,727 9,898 10,035
11/30/92 9,912 10,079 10,049
12/31/92 9,980 10,196 10,042
1/31/93 10,065 10,368 10,091
2/28/93 10,385 10,748 10,127
3/31/93 10,391 10,591 10,162
4/30/93 10,426 10,692 10,190
5/31/93 10,472 10,729 10,205
6/30/93 10,578 10,940 10,219
7/31/93 10,604 10,968 10,219
8/31/93 10,749 11,195 10,248
9/30/93 10,976 11,332 10,269
10/31/93 11,020 11,351 10,311
11/30/93 10,902 11,257 10,318
12/31/93 11,131 11,497 10,318
1/31/94 11,248 11,639 10,346
2/28/94 10,984 11,320 10,381
3/31/94 10,635 10,887 10,417
4/30/94 10,691 11,007 10,431
5/31/94 10,758 11,095 10,439
6/30/94 10,751 11,047 10,474
7/31/94 10,914 11,233 10,502
8/31/94 10,961 11,277 10,544
9/30/94 10,859 11,125 10,573
10/31/94 10,723 10,962 10,580
11/30/94 10,567 10,755 10,594
12/31/94 10,658 10,949 10,594
1/31/95 10,890 11,232 10,636
2/28/95 11,177 11,550 10,679
3/31/95 11,302 11,706 10,714
4/30/95 11,316 11,720 10,750
5/31/95 11,640 12,092 10,771
6/30/95 11,523 12,017 10,792
</TABLE>
GRAPHIC MATERIAL (7)
This bar chart shows the comparison between the fund's seven-day annualized
yield of 3.36% and the taxable equivalent yield of 6.25%.