Table of Contents
Page
Message from the Chairman 2
Fund Reports
Franklin California Insured
Tax-Free Income Fund 4
Franklin California Intermediate-Term
Tax-Free Income Fund 11
Franklin California Tax-Exempt
Money Fund 15
Statement of Investments 17
Financial Statements 51
Notes to Financial Statements 54
To reduce the volume of mail shareholders receive and to reduce expenses, only
one copy of most Fund reports, such as the Fund's annual and semi-annual
reports, may be mailed to a household. Additional reports may be obtained,
without charge, by calling Fund Information at 1-800/DIAL BEN (1-800/342-5236).
MESSAGE FROM THE CHAIRMAN
February 15, 1996
Dear Shareholders:
It's a pleasure to bring you the semi-annual report for the Franklin California
Tax-Free Trust covering the period ended December 31, 1995.
Since our last report dated June 30, 1995, the municipal securities market has
shown renewed strength as prices rallied in response to declining interest rates
and the continued low supply of new bonds. Fixed-income securities, in general,
benefited from the Federal Reserve Board's moves in July and December to lower
interest rates.
As interest rates declined, the municipal bond market generally responded
positively. Higher bond prices were welcome after a disappointing 1994 (one of
the worst markets in 25 years for fixed-income securities), but performance was
not as robust as we had anticipated. While demand for municipal securities was
strong in the beginning of 1995, it started to decline in April, due in part to
lingering investor concern over the media attention regarding a proposed "flat
tax." It is too early to draw conclusions on how proposed tax reform could
impact the municipal bond market, and of course we will continue to monitor the
situation.
Performance was also marginally inhibited by a strong U.S. stock market, which
encouraged some investors to move assets away from fixed-income securities into
equities. Despite these less than perfect investment conditions, the funds
within the California Tax-Free Trust performed well, as described in the
Performance Summaries beginning on page 7.
While striving to provide shareholders with a high level of current income, we
aim to avoid the effects of market volatility. In addition, we seek to reduce a
fund's exposure to credit risk by investing in a broad range of cities and
counties throughout California as well as selecting securities from a variety of
municipal sectors.
The pages that follow include information relative to each fund's performance.
Although each fund in the California Tax-Free Trust has its own specific
investment strategy, our fundamental principles remain the same: careful
selection and full-time professional management.
We believe 1996 will sustain slow to moderate economic growth and subdued
inflation, which should bode well for fixed-income securities. Furthermore,
recent trends in municipal financing indicate that the market's supply and
demand fundamentals should be favorable to bond investors, as supply may remain
low. The rebound of the municipal securities market in 1995 has reinforced our
philosophy that our shareholders should keep a long-term perspective. While your
fund may experience volatility from time to time, we believe that the
performance of tax-free income funds, including those in the California Tax-Free
Trust, will be rewarding over the long term .
As always, we appreciate your continued support, welcome your comments, and look
forward to serving you in the years to come.
Sincerely,
Charles B. Johnson
Chairman
Franklin California Tax-Free Trust
The California Economy
California has moved into its third year of recovery, following a long and deep
recession. While the state has a substantial deficit, several factors
contributed to the end of its down-cycle. The implementation of NAFTA, growth in
Pacific trade, expansion in high technology industries, increases in
construction and a decline in the number of military cutbacks all contributed to
economic improvement during 1995. While the year-old bankruptcy of Orange County
has had a temporary negative impact on the municipal bond market, the county
recently implemented a solid financial recovery program. In addition, California
closed fiscal year 1995 with an operating surplus, which contributed
significantly to its improved cash condition.
Our positive outlook for California is supported by its broad economic base,
diverse employment and prospective continued growth in 1996.
FRANKLIN CALIFORNIA INSURED TAX-FREE INCOME FUND
Fund Objective:
Seeks to provide shareholders with a high level of current income exempt from
regular federal and California state personal income taxes, and preservation of
capital, consistent with prudent investment management. The fund invests
primarily in a portfolio of insured California municipal securities.*+
Cash flow from interest payments, bond redemptions and selected securities sales
allowed us to participate in the attractive bond yields offered in the first
half of 1995. As the year progressed, the Fed lowered the federal funds rate
twice, and long-term interest rates began to decline as bond prices were driven
up by lack of supply. By the third and fourth quarters of 1995, our invesments
reflected these lower rates.
Overall, your fund performed well during the reporting period. For example, the
distribution rate of the fund's Class I shares was 5.18% on December 31, 1995.
In addition, the Class I share price, as measured by net asset value, increased
$0.47 to $12.42 on December 31, 1995, from $11.95 on June 30, 1995. Your fund's
Class I shares reported a cumulative total return of +6.81% for the six months
ended December 31, 1995.
The municipal securities in which your fund invests 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
California Insured Tax-Free Income Fund enjoys an "AAAf" rating -- the highest
mutual fund rating possible -- from Standard & Poor's Corporation. This rating
reflects Standard & Poor's assessment of the portfolio's overall credit quality,
based primarily on your fund's stated investment objectives and policies. This
rating does not reflect the fund shares' yield or market price, nor does it
imply approval by Standard & Poor's, and is subject to change.
*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.
The number of insured bonds issued continued to grow during the reporting
period. During 1995, over 43% of new municipal bonds issued in the U.S. were
insured, versus 35% in 1994.** In California alone, new insured municipal bond
issuance jumped 14% to 48% in 1995, from 34% the previous year.++ While the
municipal bankruptcy of Orange County, California has contributed to increased
use of insurance, we feel increased competition within the financial insurance
industry also played a significant role. Financial guarantors continued to
battle for market share, and the premiums they charged for insurance declined to
attractive levels. Additionally, two smaller insurers -- Financial Security
Assistance (FSA) and Capital Guarantee Insurance Company (CGIC) -- recently
combined to form a fourth major insurer, joining MBIA, FGIC and AMBAC.
Consequently, the newly combined company can compete more efficiently for major
underwritings.
**Source: Bond Buyer, 1/8/96
++Source: Bond Buyer, 1/30/95, 11/3/95. 1995 data as of 9/30/95.
Franklin California Insured
Tax-Free Income Fund
Portfolio Breakdown on 12/31/95
Based on Total Net Assets
% of Total
Sector Net Assets
Pre-Refunded 21.3%
Certificates of Participation 16.2%
Tax Allocation Bonds 15.7%
Utilities 15.2%
Other Revenue 10.8%
Hospitals 5.9%
Education 5.1%
General Obligations 2.3%
Housing 2.0%
Mello-Roos Bonds 1.8%
Transportation 1.2%
Marks-Roos Bonds 0.9%
Sales Tax Revenue 0.9%
Industrial 0.4%
Special Assessment 0.3
For a complete list of portfolio holdings, please see page 17 of this report.
Further affecting the insured municipal market was the narrowing of yield
spreads between non-insured and AAA-rated insured bonds during the reporting
period. In the declining interest-rate environment, yields available on
AAA-rated municipal bonds were historically attractive relative to lower-quality
issues, as investor demand for higher yields pushed up prices (and thus lowered
yields) on lower-quality bonds. Overall, this resulted in a much smaller yield
difference between the high-quality AAA-rated insured bonds in which your fund
invests, and lesser-grade BBB bonds.
As the table on the previous page indicates, we remained invested in a broad
range of municipal sectors. Such diversification allowed us to reduce the fund's
exposure to risk and market volatility.
Looking forward, there is a growing awareness of the critical need for
improvement in the infrastructure sector. Borrowing to fund these improvements
should positively impact the supply of California municipal bonds. Further, the
borrowers' willingness to take on these projects may be more feasible based on
the lower interest expense. Increased activity in this area will allow us to
continue to find attractive investments without sacrificing high credit quality
and income.
Performance Summary
Class I Shares
Class II performance begins on page 9.
The price of the Franklin California Insured Tax-Free Income Fund's Class I
shares, as measured by net asset value, increased to $12.42 on December 31,
1995, from $11.95 on June 30, 1995.
The fund continued to meet its primary investment objective of providing high
current income to shareholders. For the six-month period ended December 31,
1995, your fund's Class I shares paid monthly dividends totaling 33.6 cents
($0.336) per share.* Dividends will vary based on the earnings of the fund's
portfolio, and past distributions are not predictive of future results.
*Assumes shares were purchased and held for the entire accrual period. Since
dividends accrue daily, your actual distributions will vary depending on the
date 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.
At the end of the reporting period, the distribution rate for your fund's Class
I shares was 5.18%, based on an annualization of the current monthly dividend of
5.6 cents ($0.056) per share and the maximum offering price of $12.97 on
December 31, 1995. This double 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 personal income tax bracket of
46.2%, you would have to earn 9.63% from a taxable investment of similar quality
to match your fund's tax-free distribution rate.
GRAPHIC MATERIAL 1 OMMITTED - SEE APPENDIX AT END OF DOCUMENT
The fund's Class I shares reported a cumulative total return of +6.81% for the
six-month period ended December 31, 1995. Total return measures the change in
value of an investment during the period indicated, assuming reinvestment of
dividends and capital gains, if any. This calculation does not include the
initial sales charge, and past performance is not predictive of future results.
Franklin California Insured Tax-Free Income Fund - Class I Shares
Periods ended December 31, 1995
Since
Inception
1-Year 5-Year (9/03/85)
Cumulative Total Return1 16.30% 49.72% 136.39%
Average Annual Total Return2 11.37% 7.48% 8.23%
Distribution Rate3 5.18%
Equivalent Taxable Distribution Rate4 9.63%
30-Day Standardized Yield5 4.37%
Equivalent Taxable Yield4 8.12%
1. Cumulative total return shows the change in value of an investment over the
periods indicated and does not include the current maximum 4.25% initial sales
charge. See note below.
2. Average annual total return represents the average annual change in value of
an investment over the specified periods. The figures reflect the maximum 4.25%
initial sales charge. See note below.
3. Distribution rate is based on an annualization of the fund's current 5.6
cents per share monthly dividend and the maximum offering price of $12.97 on
December 31, 1995.
4. Equivalent taxable distribution rate and yield assume the 1995 maximum
combined federal and California state personal 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 December 31, 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. 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.
Class II Shares
The price of the Franklin California Insured Tax-Free Income Fund's Class II
shares, as measured by net asset value, increased to $12.47 on December 31,
1995, from $11.99 on June 30, 1995.
The fund continued to meet its primary investment objective of providing high
current income to shareholders. For the six-month period ended December 31,
1995, your fund's Class II shares paid monthly distributions totaling 30.0 cents
($0.300) per share.* Dividends will vary based on the earnings of the fund's
portfolio, and past distributions are not predictive of future results.
At the end of the reporting period, the distribution rate for your fund's Class
II shares was 4.76%, based on an annualization of the current monthly dividend
of 5.0 cents ($0.050) per share and the maximum offering price of $12.60 on
December 31, 1995. This double 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 personal income tax bracket of
46.2%, you would have to earn 8.85% from a taxable investment of similar quality
to match your fund's tax-free distribution rate.
GRAPHIC MATERIAL 2 OMMITTED - SEE APPENDIX AT END OF DOCUMENT
The fund's Class II shares reported a cumulative total return of +6.56% for the
six-month period ended December 31, 1995. Total return measures the change in
value of an investment during the period indicated, assuming reinvestment of
dividends and capital gains, if any. This calculation does not include the
initial sales charge, and past performance is not predictive of future results.
*Assumes shares were purchased and held for the entire accrual period. Since
dividends accrue daily, your actual distributions will vary depending on the
date 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 Insured Tax-Free Income Fund - Class II Shares
Periods ended December 31, 1995
Since Inception
(5/01/95)
- -------------------------------------------------------------------------------
Cumulative Total Return1 8.47%
Aggregate Total Return2 6.39%
Distribution Rate3 4.76%
Equivalent Taxable Distribution Rate4 8.85%
30-Day Standardized Yield5 3.95%
Equivalent Taxable Yield4 7.34%
- -------------------------------------------------------------------------------
1. Cumulative total return shows the change in value of an investment over the
periods indicated and does not include the 1.0% initial sales charge and 1.0%
contingent deferred sales charge (CDSC) applicable to shares redeemed within the
first 18 months of investment. See note below.
2. Aggregate total return includes the 1.0% initial sales charge and represents
the change in value of an investment since the inception date of the fund's
Class II shares. It also includes the 1.0% CDSC applicable to shares redeemed
within the first 18 months of investment. See note below.
3. Distribution rate is based on an annualization of the fund's current 5.0
cents per share monthly dividend and the maximum offering price of $12.60 on
December 31, 1995.
4. Equivalent taxable distribution rate and yield assume the 1995 maximum
combined federal and California state personal 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 December 31, 1995.
Note: Average total returns for Class II shares, which the fund began offering
on May 1, 1995, are not shown as Class II shares 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.
FRANKLIN CALIFORNIA INTERMEDIATE-TERM TAX-FREE INCOME FUND
Fund Objective:
Seeks to provide shareholders with a high level of current income exempt from
regular federal and California state personal income taxes, along with
preservation of capital. The fund invests primarily in a portfolio of California
municipal securities with an average weighted maturity (the time in which debt
must be repaid) between three and ten years.*
In the recent declining interest-rate environment, yields available on AAA-rated
municipal bonds were attractive relative to lower-quality issues, as investor
demand for higher yields pushed up prices (and thus lowered yields) on
lower-quality bonds. Overall, this resulted in a much smaller yield difference
between high-quality AAA-rated bonds, and lesser-grade BBB bonds. This narrow
spread led to more attractive prices for high-quality issues.
While very little trading occurred during the reporting period, we were able to
take advantage of narrowed yield spreads by purchasing some AAA-rated bonds with
maturities in the 10-12 year range. In addition, we sold BAA- and A-rated bonds
maturing in four to eight years. These trades enabled us to maintain the average
life of the fund, while improving credit quality and yield.
GRAPHIC MATERIAL 3 OMMITTED - SEE APPENDIX AT END OF DOCUMENT
*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.
Looking forward, we anticipate the continued low supply of municipal issues will
positively affect the fund. We continue to maintain our conservative management
approach by purchasing "essential service" bonds. Such securities tend to have a
more reliable income stream, since they are backed by revenue from hospitals,
utilities and transportation projects. As always, we will purchase securities
based on their credit quality and yield potential.
Franklin California Intermediate-Term
Tax-Free Income Fund
Portfolio Breakdown on 12/31/95
Based on Total Net Assets
% of Total
Sector Net Assets
Certificates of Participation 21.6%
Tax Allocation Bonds 21.1%
Other Revenue 14.7%
Education 9.9%
Utilities 8.2%
Housing 6.4%
Special Assessment Bonds 4.8%
Hospitals 3.4%
Marks-Roos Bonds 3.0%
Special Tax Revenue Bonds 2.6%
Pre-Refunded 1.4%
Health Care 1.2%
Mello-Roos Bonds 1.1%
Transportation 0.3%
General Obligations 0.2%
Industrial 0.1
For a complete list of portfolio holdings, please see page 36 of this report.
Performance Summary
The Franklin California Intermediate-Term Tax-Free Income Fund's share price, as
measured by net asset value, increased to $10.86 on December 31, 1995, from
$10.38 on June 30, 1995.
The fund continued to meet its objective of providing high current income to its
shareholders. For the six-month period ended December 31, 1995, your fund paid
monthly dividends totaling 26.4 cents ($0.264) per share.* Dividends will vary
based on the earnings of the fund's portfolio, and past distributions are not
predictive of future results.
At the end of the reporting period, your fund's distribution rate was 4.75%,
based on an annualization of the current monthly dividend of 4.4 cents ($0.044)
per share and the maximum offering price of $11.11 on December 31, 1995. This
double 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 personal income tax bracket of 46.2%, you would
have to earn 8.83% from a taxable investment of similar quality to match your
fund's tax-free distribution rate.
GRAPHIC MATERIAL 4 OMMITTED - SEE APPENDIX AT END OF DOCUMENT
The fund's cumulative total return was +7.25% for the six-month period ended
December 31, 1995. Total return measures the change in value of an investment
during the period indicated, assuming reinvestment of dividends and capital
gains, if any. This calculation does not include the initial sales charge, and
past performance is not predictive of future results.
*Assumes shares were purchased and held for the entire accrual period. Since
dividends accrue daily, your actual distributions will vary depending on the
date 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
Periods ended December 31, 1995
Since
Inception
1-Year 3-Year (9/23/92)
- -------------------------------------------------------------------------------
Cumulative Total Return1 15.95% 23.82% 26.55
Average Annual Total Return2 13.30% 6.55% 6.71%
Distribution Rate3 4.75%
Equivalent Taxable Distribution Rate4 8.83%
30-Day Standardized Yield5 4.66%
Equivalent Taxable Yield4 8.66%
- -------------------------------------------------------------------------------
1. Cumulative total returns measure the change in value of an investment over
the periods indicated and do not include the current, maximum 2.25% initial
sales charge. See note below.
2. Average annual total returns represent the average annual change in value of
an investment over the periods indicated and reflect the current, maximum 2.25%
initial sales charge. See note below.
3. Distribution rate is based on an annualization of the fund's current 4.4
cents per share monthly dividend and the maximum offering price of $11.11 on
December 31, 1995.
4. Equivalent taxable distribution rate and yield assume the 1995 maximum
combined federal and California state personal 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 December 31, 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 and total return would have been lower, and yield for the period would have
been 4.30%. The fee waiver may be discontinued at any time upon advance notice
to the fund's Board of Trustees.
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, along with
preservation of capital and liquidity, by investing in a portfolio of short-term
municipal debt securities issued in California. The fund is managed to maintain
a $1.00 share price.*
On December 31, 1995, the fund's seven-day effective yield, which assumes the
compounding of daily dividends, was 3.79%, and the fund's seven-day annualized
yield was 3.72%. This double tax-free rate is generally higher than the
after-tax return on a comparable taxable investment. As shown in the chart to
the right, if you are in the maximum combined federal and California state
personal income tax bracket of 46.2%, your fund's annualized rate was equivalent
to a taxable yield of 6.92%.
GRAPHIC MATERIAL 5 OMMITTED - SEE APPENDIX AT END OF DOCUMENT
During the six-month reporting period, we continued to emphasize liquidity and
safety by purchasing only the highest-quality securities available to money
market portfolios.
*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.
By December 31, 1995, the fund's average maturity was relatively long at 37
days, identical to its maturity six months earlier. We were able to lock in
higher yields for an extended period of time, increasing the fund's effective
yield to 3.79% on December 31, 1995, from 3.42% on June 30, 1995.
We will continue to manage the fund for high quality and liquidity, as we
anticipate slow economic growth, subdued inflation and level to declining
interest rates. As a result, the fund's average maturity may remain close to its
present length, to protect it against a further decline in rates.
Performance Summary
California Tax-Exempt Money Fund
Periods ended December 31, 1995
- -------------------------------------------------------------------------------
Seven-day annualized yield 3.72%
Equivalent taxable yield2 6.92%
Seven-day effective yield1 3.79%
- -------------------------------------------------------------------------------
1. The seven-day effective yield assumes the compounding of daily dividends.
2. Equivalent taxable yield assumes the 1995 maximum combined federal and
California state personal income tax bracket of 46.2%, based on the maximum
federal income tax rate of 39.6%.
Annualized and effective yields are for the seven days ended December 31, 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.
FRANKLIN CALIFORNIA TAX-FREE TRUST
Statement of Investments in Securities and Net Assets, December 31, 1995
(unaudited)
<TABLE>
<CAPTION>
Face Value
Amount Franklin California Insured Tax-Free Income Fund (Note 1)
Long Term Investments98.8%
Bonds98.4%
<S> <C> <C>
$ 1,000,000 Alameda COP, Police Building and Equipment Financing Project, MBIA Insured,
7.25%, 08/01/15.............................................................. $ 1,114,710
2,000,000 Alameda County COP, Municipal Custody Receipts, Series 1, BIG Insured,
Pre-Refunded, 7.25%, 12/01/07................................................ 2,300,540
1,000,000 Alameda County Water District Revenue COP, Water System Project, FGIC Insured,
6.00%, 06/01/20 ............................................................. 1,045,990
10,730,000 Alhambra COP, Police Facilities AD No. 91-1, AMBAC Insured, 6.75%, 09/01/23 .. 11,740,015
1,000,000 Anaheim COP, AMBAC Insured, Pre-Refunded, 6.75%, 10/01/10 .................... 1,124,940
Anaheim COP,
3,240,000 Anaheim Memorial Hospital, AMBAC Insured, Pre-Refunded, 7.25%, 05/15/20...... 3,684,107
3,000,000 Anaheim Public Improvement Corp., Refunding, BIG Insured, 6.70%, 08/01/08.... 3,072,210
Anaheim Public Financing Authority Revenue, Refunding, Anaheim Electric
Utility Projects,
3,825,000 MBIA Insured, 5.60%, 10/01/16................................................ 3,860,305
2,000,000 MBIA Insured, 5.625%, 10/01/22............................................... 2,022,060
3,000,000 Antioch Area Public Facilities Financing Agency, Special Tax Allocation, CFD,
1989-1, Refunding, FGIC Insured, 5.375%, 08/01/13 ........................... 3,000,870
3,485,000 Apple Valley USD, COP, MBIA Insured, Pre-Refunded, 6.875%, 09/01/21 .......... 3,986,004
1,985,000 Arcadia GO, USD, Series B, FGIC Insured, 5.875%, 07/01/20 .................... 2,061,482
5,690,000 Arcata Joint Powers Financing Authority Revenue, Tax Allocation, Community
Development Project, Series A, AMBAC Insured, 6.00%, 08/01/23 ............... 5,976,093
3,080,000 Azusa Public Financing Authority Revenue, Refunding, Water System Acquisition
Project, Series A, FGIC Insured, 5.50%, 07/01/13 ............................ 3,109,445
4,150,000 Bakersfield Hospital Revenue, Refunding, Adventist Health System, MBIA Insured,
5.50%, 03/01/19 ............................................................. 4,158,508
Baldy Mesa Water District, COP, Water System Improvement Project,
760,000 AMBAC Insured, 6.40%, 08/01/17............................................... 812,949
1,170,000 AMBAC Insured, 6.45%, 08/01/24............................................... 1,254,100
2,000,000 Barstow RDA, Tax Allocation, Central Redevelopment Project, Series A,
MBIA Insured, 6.25%, 09/01/22 ............................................... 2,141,240
10,775,000 Bay Area Government Association, RDAR, Tax Allocation, Pool A2, CGIC Insured,
6.60%, 12/15/24 ............................................................. 11,962,621
2,995,000 Benicia COP, Refunding, Water System Project, AMBAC Insured, 6.125%, 11/01/17. 3,137,652
5,900,000 Benicia USD, Series A, AMBAC Insured, 6.85%, 08/01/16 ........................ 6,523,748
Berkeley COP,
1,270,000 AMBAC Insured, 7.50%, 06/01/19............................................... 1,385,799
2,400,000 Civic Improvement Corp., AMBAC Insured, 7.00%, 06/01/15...................... 2,482,488
Big Bear Lake Water Revenue, Refunding,
720,000 FGIC Insured, 6.25%, 04/01/12................................................ 771,430
4,400,000 FGIC Insured, 6.375%, 04/01/22............................................... 4,731,100
Brea Public Finance Authority Revenue, Tax Allocation, Redevelopment Project,
$ 1,520,000 Series A, MBIA Insured, 7.00%, 08/01/15...................................... $ 1,695,621
1,550,000 Series A, MBIA Insured, 6.75%, 08/01/22...................................... 1,686,602
12,410,000 Series A, MBIA Insured, 7.00%, 08/01/23...................................... 13,747,550
3,480,000 Series A, MBIA Insured, Pre-Refunded, 7.00%, 08/01/15........................ 3,996,119
7,445,000 Series A, MBIA Insured, Pre-Refunded, 7.00%, 08/01/23........................ 8,549,168
2,155,000 Buellton USD, Series A, MBIA Insured, 6.375%, 07/01/17 ....................... 2,308,695
2,000,000 Burbank PCR, Wastewater Treatment, Series A, FGIC Insured, 5.50%, 06/01/25 ... 2,004,920
665,000 Burbank Waste Disposal Revenue, Series B, AMBAC Insured, 6.00%, 05/01/22 ..... 690,762
2,100,000 Calaveras County Water District, COP, AMBAC Insured, Pre-Refunded,
7.10%, 01/01/15 ............................................................. 2,357,229
3,950,000 Calaveras County Water District Revenue, Refunding, COP, Water and Sewer
System Improvement Project, AMBAC Insured, 6.00%, 05/01/16 .................. 4,144,893
1,795,000 Calexico CRDA Revenue, Tax Allocation, Refunding, Merged Central Business
and Residential, CGIC Insured, 5.85%, 08/01/15 .............................. 1,845,224
California Educational Facilities Authority Revenue,
3,500,000 Pooled Facilities Program, MBIA Insured, 6.70%, 11/01/09..................... 3,619,560
1,800,000 Pooled Facilities Program, MBIA Insured, 7.625%, 11/01/12.................... 1,941,426
1,000,000 Pooled Facilities Program, MBIA Insured, 7.00%, 03/01/16..................... 1,099,560
California Health Facilities Financing Authority Revenue,
3,000,000 Adventist Health Systems West, Series A, MBIA Insured, 7.00%, 03/01/13....... 3,327,660
5,065,000 Adventist Health Systems West, Series B, MBIA Insured, 6.75%, 03/01/14....... 5,500,691
3,900,000 Catholic Health Care, Series A, AMBAC Insured, Pre-Refunded, 7.00%, 07/01/06. 4,325,373
8,405,000 Catholic Health Care, Series A, AMBAC Insured, Pre-Refunded, 7.00%, 07/01/20. 9,321,733
7,605,000 Centinela Hospital Medical Center, MBIA Insured, 6.50%, 09/01/08............. 8,389,608
4,000,000 Marin General Hospital, Series A, CGIC Insured, 7.00%, 08/01/15.............. 4,383,720
11,110,000 San Diego Hospital Association, MBIA Insured, 6.625%, 05/01/19............... 11,742,937
2,425,000 San Diego Hospital Association, Series A, MBIA Insured, 6.20%, 08/01/12...... 2,570,282
4,850,000 San Diego Hospital Association, Series A, MBIA Insured, 6.20%, 08/01/20...... 5,123,443
3,500,000 Scripps Memorial Hospital, Series A, MBIA Insured, 6.40%, 10/01/12........... 3,781,260
3,000,000 Sharp Temecula Hospital, MBIA Insured, 7.05%, 08/01/21....................... 3,346,080
California HFAR,
1,315,000 Series A, MBIA Insured, 7.15%, 08/01/11...................................... 1,421,489
4,100,000 Series A, MBIA Insured, 8.20%, 02/01/20...................................... 4,343,048
3,450,000 Series A, MBIA Insured, 7.20%, 02/01/26...................................... 3,704,990
1,815,000 Series B, MBIA Insured, 6.80%, 08/01/11...................................... 1,979,167
245,000 Series B, MBIA Insured, 8.625%, 08/01/15..................................... 253,727
6,500,000 California PCR, Financing Authority, San Diego Gas & Electric, Series A, MBIA
Insured, 5.85%, 06/01/21..................................................... 6,607,640
$ 9,610,000 California Public Capital Improvement Financing Authority Revenue, Pooled Projects,
Series B, BIG Insured, 8.10%, 03/01/18 ...................................... $ 10,423,871
2,500,000 California State Department of Water Resources Revenue, Central Valley Project,
Water Systems, Series J-3, MBIA Insured, 5.50%, 12/01/22..................... 2,509,125
California State GO,
9,000,000 AMBAC Insured, 6.30%, 09/01/06............................................... 10,179,540
2,255,000 FGIC Insured, 6.00%, 08/01/19................................................ 2,377,672
3,500,000 FGIC Insured, 6.00%, 05/01/20................................................ 3,686,900
1,000,000 Various Purposes, MBIA Insured, 6.00%, 10/01/21.............................. 1,046,940
California State Loan Purchase Authority Revenue, Loan Contract,
2,000,000 Series A, CGIC Insured, 7.75%, 10/01/08...................................... 2,216,440
3,365,000 Series A, CGIC Insured, Pre-Refunded, 7.80%, 10/01/18........................ 3,749,317
3,000,000 California State Public Works, Board Lease Revenue, University of California
Project, Series A, AMBAC Insured, 6.40%, 12/01/16 ........................... 3,254,070
California State University and Colleges, Student Union Revenue,
1,310,000 Bakersfield, Series A, MBIA Insured, 6.30%, 11/01/22......................... 1,404,124
2,375,000 San Bernardino, Series B, MBIA Insured, 6.30%, 02/01/22...................... 2,549,539
1,500,000 California State University, Fresno Revenue, Auxiliary Residence Student Project,
MBIA Insured, 6.25%, 02/01/17 ............................................... 1,607,625
Cambria Community Services District Revenue,
1,000,000 COP, Wastewater Treatment System Upgrade, MBIA Insured, 6.90%, 11/01/24...... 1,145,530
1,330,000 Water and Wastewater, Refunding, Series A, MBIA Insured, 6.00%, 05/01/15..... 1,400,291
2,485,000 Carpinteria Sanitation District, Capital Facilities Revenue, FGIC Insured,
6.25%, 07/01/14.............................................................. 2,657,260
2,000,000 Castaic Lake Water Agency, COP, Water System Improvement Project, MBIA
Insured, Pre-Refunded, 7.125%, 08/01/16 ..................................... 2,274,180
1,830,000 Central Basin Municipal Water District, COP, Century Reclamation Program,
FGIC Insured, Pre-Refunded, 6.875%, 02/01/16 ................................ 2,042,408
Central Coast Water Authority Revenue, System Water Project, Regional Facilities,
2,500,000 AMBAC Insured, 6.50%, 10/01/14............................................... 2,744,950
4,650,000 AMBAC Insured, 6.60%, 10/01/22............................................... 5,131,926
3,035,000 Central School District, San Bernardino County, AMBAC Insured, 5.60%, 05/01/16 3,085,411
Central Union High School District, Imperial County,
890,000 Series A, AMBAC Insured, 5.50%, 08/01/17..................................... 898,526
1,005,000 Series A, AMBAC Insured, 5.50%, 08/01/18..................................... 1,014,628
5,000,000 Cerritos Public Financing Authority Revenue, Los Coyotes Redevelopment Project,
Series A, AMBAC Insured, 5.75%, 11/01/22 .................................... 5,104,850
815,000 Chico Public Financing Authority Revenue, Southeast Chico Redevelopment Project,
Series A, FGIC Insured, 6.625%, 04/01/21 .................................... 875,921
$ 2,000,000 Chino Basin Regional Financing Authority Revenue, Refunding, Municipal Water
District, Sewer System Project, AMBAC Insured, 6.00%, 08/01/16 .............. $ 2,108,800
3,590,000 Chino COP, RDA, Refunding, Water System Improvement Project, AMBAC Insured,
6.20%, 09/01/18 ............................................................. 3,834,300
6,250,000 Chino, Ontario, Upland, Water Facilities Authority, COP, Refunding, Agua de
Lejos Projects, Series A, FGIC Insured, 6.75%, 10/01/11 ..................... 6,461,500
2,940,000 Chula Vista Elementary School District, COP, MBIA Insured, 6.60%, 08/01/16 ... 3,093,203
3,945,000 Chula Vista Public Finance Authority, Local Agency Revenue, Series 1995-A,
CGIC Insured, 6.125%, 09/02/14 .............................................. 4,197,046
1,000,000 Clayton RDAR, Tax Allocation, Clayton Redevelopment Project, CGIC Insured,
5.55%, 08/01/20 ............................................................. 1,005,850
1,500,000 Coachella Valley Recreation and Park District, 1915 ACT, Refunding,
Reassessment District No. 94-1, MBIA Insured, 6.20%, 09/02/16 ............... 1,606,215
1,350,000 Colton Joint USD, CFD, Special Tax, Refunding, Southridge Village, Phase III,
CGIC Insured, 5.90%, 09/01/14 ............................................... 1,385,343
975,000 Concord RDA, Tax Allocation, Concord Center Redevelopment Project, AMBAC
Insured, Pre-Refunded, 8.875%, 07/01/16 ..................................... 1,018,992
Contra Costa County COP,
1,250,000 Buildings Acquisition Project, AMBAC Insured, 6.70%, 02/01/21................ 1,330,550
1,000,000 Public Facilities Corp., BIG Insured, 7.80%, 06/01/08........................ 1,123,030
2,385,000 Contra Costa Mosquito Abatement District, COP, Refunding, Public Improvements
Project, CGIC Insured, 6.25%, 02/01/06 ...................................... 2,562,778
5,425,000 Coronado CDA, Tax Allocation, Coronado Community Development Project,
MBIA Insured, 6.375%, 09/01/23 .............................................. 5,795,365
4,500,000 Covina COP, Housing Revenue, AMBAC Insured, 7.00%, 03/01/17 .................. 4,704,390
1,105,000 Delano USD, Series A, CGIC Insured, 6.10%, 05/01/17 .......................... 1,163,466
Desert Hot Springs RDA, Tax Allocation, Refunding, Redevelopment Project No. 1,
2,000,000 Series A, MBIA Insured, 5.35%, 09/01/14...................................... 1,995,160
2,735,000 Series A, MBIA Insured, 5.375%, 09/01/19..................................... 2,718,481
1,500,000 Desert Sands USD, COP, Capital Projects, FSA Insured, 5.75%, 03/01/20 ........ 1,522,080
4,155,000 Dublin-San Ramon Services District, COP, AMBAC Insured, 7.00%, 12/01/20 ...... 4,583,422
East Bay MUD, Wastewater Treatment System Revenue,
1,000,000 AMBAC Insured, Pre-Refunded, 7.125%, 06/01/17................................ 1,133,190
2,000,000 AMBAC Insured, Pre-Refunded, 7.20%, 06/01/20................................. 2,272,360
East Bay MUD, Water System Revenue,
6,000,000 AMBAC Insured, 6.50%, 06/01/20............................................... 6,616,380
5,000,000 MBIA Insured, Pre-Refunded, 7.50%, 06/01/18.................................. 5,740,700
1,000,000 Refunding, FGIC Insured, 6.00%, 06/01/20..................................... 1,045,560
Eastern Municipal Water and Sewer District Revenue, COP,
$ 1,000,000 FGIC Insured, Pre-Refunded, 6.75%, 07/01/08.................................. $ 1,134,530
1,400,000 Refunding, Series A, FGIC Insured, 6.30%, 07/01/20........................... 1,471,666
1,000,000 El Centro COP, AMBAC Insured, 6.875%, 06/01/09 ............................... 1,038,150
5,960,000 El Cerrito RDA, Tax Allocation, Refunding, Redevelopment Project, Series A,
CGIC Insured, 6.80%, 07/01/19 ............................................... 6,439,720
6,900,000 Eureka Public Financing Authority Revenue, Tax Allocation, Eureka Redevelopment
Project, CGIC Insured, Pre-Refunded, 7.40%, 11/01/12 ........................ 7,633,815
905,000 Fairfield COP, Refunding, Fairfield Utility Improvement Project, FGIC Insured,
7.35%, 04/01/15 ............................................................. 929,516
Fairfield Public Financing Authority Revenue,
2,000,000 Fairfield Redevelopment Project, Series C, CGIC Insured, 5.25%, 08/01/13..... 1,950,620
5,000,000 Fairfield Redevelopment Project, Series C, CGIC Insured, 5.50%, 08/01/23..... 4,950,700
4,750,000 Municipal Park, ID No. 1, FGIC Insured, 6.30%, 07/01/23...................... 5,064,688
4,300,000 Refunding, Series B, MBIA Insured, 5.80%, 04/01/23........................... 4,401,437
1,265,000 Farmersville USD, Series A, AMBAC Insured, 5.70%, 07/01/18 ................... 1,290,996
2,525,000 Fillmore Public Financing Authority Revenue, Refunding, Central City
Redevelopment Project, Series A, AMBAC Insured, 5.75%, 10/01/16 ............. 2,607,517
Folsom Public Financing Authority Revenue, Refunding,
2,000,000 AMBAC Insured, 6.00%, 10/01/08............................................... 2,137,120
1,000,000 AMBAC Insured, 6.00%, 10/01/12............................................... 1,054,090
3,400,000 AMBAC Insured, 6.00%, 10/01/19............................................... 3,559,596
5,850,000 Fontana RDA, Tax Allocation, Refunding, Southwest Industrial Park Project,
FGIC Insured, 6.125%, 09/01/25 .............................................. 6,178,946
1,000,000 Fresno COP, City Hall Refinancing Project, AMBAC Insured, 6.25%, 08/01/19 .... 1,053,000
7,140,000 Fresno Water System Revenue Water Remediation Project, Series A, FGIC Insured,
5.875%, 06/01/20 ............................................................ 7,395,398
1,780,000 Fruitvale School District, Series B, MBIA Insured, 6.00%, 08/01/20 ........... 1,856,166
1,000,000 Fulton El Camino Recreational and Park District, COP, Series A, CGIC Insured,
Pre-Refunded, 6.375%, 12/01/11 .............................................. 1,107,200
1,000,000 Glendale Hospital Revenue, Refunding, Adventist Health, Series A, MBIA Insured,
6.75%, 03/01/13 ............................................................. 1,086,020
Glendale RDAR, Tax Allocation, Refunding, Central Glendale Redevelopment Project,
1,500,000 AMBAC Insured, 5.50%, 12/01/14............................................... 1,509,015
4,255,000 AMBAC Insured, 5.60%, 12/01/17............................................... 4,296,614
4,490,000 AMBAC Insured, 5.60%, 12/01/18............................................... 4,533,912
9,775,000 AMBAC Insured, 6.00%, 12/01/20............................................... 10,204,611
1,000,000 Goleta Water District Revenue, Refunding, COP, Goleta Reclamation Project,
FGIC Insured, 5.50%, 12/01/12 ............................................... 1,013,670
$ 2,000,000 Grossmont Hospital District Revenue, La Mesa, Series A, MBIA Insured,
Pre-Refunded, 8.00%, 11/15/17 ............................................... $ 2,181,200
1,000,000 Hercules COP, Refunding, Capital Improvement Projects, AMBAC Insured,
6.00%, 06/01/15 ............................................................. 1,051,780
3,425,000 Hesperia Water District, COP, Refunding, Water Facilities Improvement Projects,
FGIC Insured, 7.15%, 06/01/26 ............................................... 3,897,821
5,875,000 Imperial Irrigation District, COP, Electric System Project, MBIA Insured,
6.00%, 11/01/15 ............................................................. 6,200,005
2,260,000 Industry, City of, Public Works & Capital Improvement, FGIC Insured, Pre-Refunded,
6.80%, 07/01/15 ............................................................. 2,491,944
8,535,000 Kern County Board of Education, COP, Administration Building Financing Project,
MBIA Insured, 6.20%, 02/01/23 ............................................... 8,841,833
Kern County High School District,
1,535,000 CGIC Insured, 6.625%, 08/01/14............................................... 1,779,403
1,400,000 CGIC Insured, 6.625%, 08/01/15............................................... 1,629,852
3,460,000 King City Joint Union High School District, Series A, AMBAC Insured,
6.30%, 08/01/19 ............................................................. 3,690,471
3,080,000 La Mirada RDA, Industrial Commercial Redevelopment Project, Series A,
MBIA Insured, 6.60%, 08/15/21 ............................................... 3,320,363
Lake Arrowhead Community Services District, COP, Refunding,
7,600,000 FGIC Insured, 6.125%, 06/01/05............................................... 8,319,036
14,000,000 FGIC Insured, 6.50%, 06/01/15................................................ 15,205,680
4,000,000 San Bernardino County, Series C, BIG Insured, Pre-Refunded, 7.80%, 09/01/10.. 4,326,240
Lake Elsinore Public Financing Authority Revenue, Tax Allocation, Lake Elsinore
Redevelopment Projects,
3,000,000 Series A, CGIC Insured, 5.65%, 09/01/15...................................... 3,039,930
1,750,000 Series A, CGIC Insured, 5.80%, 09/01/25...................................... 1,773,135
1,255,000 Series A, FGIC Insured, 6.25%, 02/01/19...................................... 1,314,838
12,840,000 Series C, FGIC Insured, 6.625%, 02/01/17..................................... 13,750,870
2,500,000 Lakewood RDA, Subordinate Tax Allocation, Refunding, Town Center
Redevelopment Project, CGIC Insured, Pre-Refunded, 8.50%, 09/01/13 .......... 2,729,625
3,000,000 Lakewood RDA, Tax Allocation, Refunding, Redevelopment Project No. 1, Series A,
CGIC Insured, 6.50%, 09/01/17 ............................................... 3,255,930
Lancaster RDA, Tax Allocation,
1,330,000 Combination Redevelopment Project Areas, Library, MBIA Insured,
5.75%, 08/01/23.............................................................. 1,352,437
2,020,000 Combination Redevelopment Project, Fire Protection, MBIA Insured,
5.75%, 08/01/23.............................................................. 2,054,077
11,245,000 Refunding, Lancaster Redevelopment Project No. 5, MBIA Insured,
6.85%, 02/01/19.............................................................. 12,251,765
Lincoln RDA, Tax Allocation, Local Government Finance Authority Revenue,
$ 1,500,000 AMBAC Insured, 9.00%, 08/01/11............................................... $ 1,673,235
470,000 AMBAC Insured, 9.00%, 08/01/12............................................... 523,777
2,425,000 Lincoln USD, CFD No. 1, AMBAC Insured, 6.90%, 09/01/21 ....................... 2,670,944
1,250,000 Livermore Public Building COP, AMBAC Insured, 7.05%, 04/01/17 ................ 1,357,963
2,000,000 Local Government Finance Authority Revenue, Refunding, Bunker Hill Project,
AMBAC Insured, Pre-Refunded, 6.75%, 12/01/14 ................................ 2,219,800
8,800,000 Lodi COP, Refunding, Wastewater Treatment Project, AMBAC Insured,
6.70%, 08/01/26 ............................................................. 9,949,720
Loma Linda Hospital Revenue, Loma Linda University Medical Center Project,
1,910,000 Refunding, Series B, AMBAC Insured, 7.00%, 12/01/15.......................... 2,088,318
2,500,000 Series B, MBIA Insured, Pre-Refunded, 7.00%, 12/01/10........................ 2,848,200
2,500,000 Long Beach RDA, Refunding, Downtown Redevelopment Project, Series A,
AMBAC Insured, Pre-Refunded, 7.75%, 11/01/10 ................................ 2,789,000
3,500,000 Los Angeles Convention and Exhibition Center, COP, AMBAC Insured,
Pre-Refunded, 7.00%, 08/15/21 ............................................... 3,964,730
3,000,000 Los Angeles County Capital Assets Leasing Corp., Leasehold Revenue, Refunding,
AMBAC Insured, 6.00%, 12/01/16 .............................................. 3,143,070
8,050,000 Los Angeles County COP, Correctional Facilities Project, MBIA Insured,
6.50%, 09/01/13 ............................................................. 8,631,693
5,825,000 Los Angeles County COP, Refunding, San Pedro Peninsula Hospital Project,
AMBAC Insured, 6.25%, 05/01/15 .............................................. 6,131,512
2,000,000 Los Angeles County Transit Common Sales Tax Revenue, Proposition C, Series A,
MBIA Insured, 6.00%, 07/01/23 ............................................... 2,091,940
Los Angeles County Transportation Authority Revenue, Commission Sales Tax,
15,000,000 FGIC Insured, Pre-Refunded, 6.75%, 07/01/18.................................. 17,017,950
1,440,000 Series A, FGIC Insured, Pre-Refunded, 6.75%, 07/01/20........................ 1,633,723
2,740,000 Series B, FGIC Insured, 6.50%, 07/01/13...................................... 2,953,693
5,025,000 Series B, FGIC Insured, 6.50%, 07/01/15...................................... 5,416,900
3,200,000 Los Angeles CRDA, Tax Allocation, Hollywood Redevelopment Project, Series B,
MBIA Insured, 6.10%, 07/01/22 ............................................... 3,357,600
Los Angeles Department of Water and Power, Electric Plant Revenue,
17,215,000 FGIC Insured, 6.125%, 01/15/33............................................... 18,072,135
2,000,000 MBIA Insured, 6.00%, 08/15/32................................................ 2,078,860
3,500,000 Refunding, FGIC Insured, 6.00%, 02/01/28..................................... 3,654,280
6,875,000 Los Angeles Department of Water and Power, Waterworks Revenue, Second Issue,
FGIC Insured, 6.40%, 11/01/31 ............................................... 7,361,200
Los Angeles Harbor Department Revenue,
3,790,000 Series B, AMBAC Insured, 6.60%, 08/01/14..................................... 4,142,849
2,000,000 Series B, AMBAC Insured, 6.60%, 08/01/15..................................... 2,146,740
Los Angeles Mortgage Revenue, Refunding,
$ 2,000,000 Series I, MBIA Insured, 6.50%, 07/01/22...................................... $ 2,162,600
4,735,000 Series II-E, MBIA Insured, 5.625%, 07/01/22.................................. 4,673,966
Los Angeles Wastewater System Revenue,
1,000,000 FGIC Insured, 6.70%, 08/01/12................................................ 1,074,010
2,000,000 MBIA Insured, Pre-Refunded, 7.00%, 02/01/13.................................. 2,201,180
2,000,000 Refunding, Series A, MBIA Insured, 5.70%, 06/01/20........................... 2,033,360
5,500,000 Series A, MBIA Insured, Pre-Refunded, 7.10%, 02/01/21........................ 6,068,975
3,250,000 Series B, AMBAC Insured, 6.00%, 06/01/22..................................... 3,398,070
6,130,000 Series B, AMBAC Insured, Pre-Refunded, 7.10%, 06/01/18....................... 6,805,465
15,000,000 Series D, MBIA Insured, Pre-Refunded, 6.70%, 12/01/21........................ 16,891,500
4,000,000 Lynwood Public Financing Authority Revenue, Series A, AMBAC Insured,
5.75%, 09/01/18 ............................................................. 4,082,800
4,000,000 Madera RDA, Tax Revenue, Refunding, Madera Redevelopment Project Area,
CGIC Insured, 5.80%, 09/01/23 ............................................... 4,067,640
4,500,000 Marysville Hospital Revenue, Fremont Rideout Health Group, AMBAC Insured,
6.30%, 01/01/22 ............................................................. 4,762,440
Menlo Park CDA, Tax Allocation, Las Pulgas Community Project,
13,265,000 AMBAC Insured, 6.625%, 10/01/21.............................................. 14,538,573
3,095,000 AMBAC Insured, 6.70%, 10/01/22............................................... 3,395,927
5,600,000 Mesa Construction Water District COP, Water Project, FGIC Insured,
6.40%, 03/15/18 ............................................................. 6,011,432
Modesto COP,
2,000,000 Municipal Improvement, FGIC Insured, Pre-Refunded, 7.30%, 11/01/20........... 2,207,420
5,000,000 Water System Improvement Project, AMBAC Insured, 6.25%, 10/01/22............. 5,275,200
Modesto Health Facilities Revenue, Memorial Hospital Association,
5,565,000 Refunding, Series A, MBIA Insured, 6.00%, 06/01/18........................... 5,800,066
1,500,000 Series 1991, MBIA Insured, 6.875%, 06/01/21.................................. 1,641,990
Modesto Irrigation District COP,
6,745,000 Crossover Refunding, Geysers Geothermal Power Project, BIG Insured,
5.00%, 10/01/17.............................................................. 6,385,154
3,000,000 Refunding & Capital Improvements Projects, Series A, MBIA Insured,
6.00%, 10/01/21.............................................................. 3,092,010
Modesto Irrigation District, Financing Authority Revenue, Domestic Water Project,
2,000,000 Series A, AMBAC Insured, 6.125%, 09/01/19.................................... 2,103,280
2,500,000 Series C, AMBAC Insured, 5.75%, 09/01/22..................................... 2,570,400
4,000,000 Modesto Wastewater Treatment Facilities Revenue, Refunding, AMBAC Insured,
8.00%, 11/01/07 ............................................................. 4,211,720
2,000,000 Monrovia RDA, Public Parking Facilities, Lease Revenue, Refunding, Series A,
AMBAC Insured, 5.20%, 04/01/13 .............................................. 1,961,900
$ 720,000 Montebello USD, COP, Series B, MBIA Insured, 7.25%, 06/01/10 ................. $ 808,013
3,215,000 Monterey County, COP, Refunding, Sheriffs Facilities Project, CGIC Insured,
5.25%, 12/01/17 ............................................................. 3,125,141
1,750,000 Morgan Hill RDAR, Tax Allocation, Ojo de Agua Community Development Project,
FGIC Insured, Pre-Refunded, 7.875%, 03/01/11 ................................ 1,796,603
Moulton Niguel Water District,
1,420,000 AMBAC Insured, Pre-Refunded, 7.25%, 04/01/16................................. 1,610,351
3,310,000 COP, AMBAC Insured, 5.375%, 09/01/13......................................... 3,310,960
2,280,000 Refunding, Consolidated Improvement Districts, MBIA Insured, 5.25%, 09/01/13. 2,248,855
1,500,000 Mountain View COP, Improvement Financing Authority Revenue, City Hall/
Community Theatre, MBIA Insured, 6.50%, 08/01/16 ............................ 1,614,270
2,535,000 Mountain View School District, Refunding, CFD, Special Tax, Series A, CGIC
Insured, 7.25%, 10/01/11 .................................................... 2,818,058
1,000,000 Mt. Diablo Hospital District Revenue, Series A, AMBAC Insured, Pre-Refunded,
7.00%, 12/01/17 ............................................................. 1,139,280
Mt. Diablo USD, CFD No. 1, Special Tax,
500,000 AMBAC Insured, 6.25%, 08/01/14............................................... 533,430
1,000,000 CGIC Insured, 6.00%, 08/01/24................................................ 1,053,730
1,000,000 FGIC Insured, 7.05%, 08/01/20................................................ 1,110,970
2,000,000 National City Joint Powers Authority, Lease Revenue, National City Police
Facilities Project, AMBAC Insured, 6.75%, 10/01/17 .......................... 2,190,120
North City West School Facilities, Financing Authority, Special Tax, Refunding,
1,260,000 Series B, CGIC Insured, 5.75%, 09/01/15...................................... 1,297,624
2,500,000 Series B, CGIC Insured, 6.00%, 09/01/19...................................... 2,608,050
North Tahoe PUD, COP, Refunding & Improvement, Water System Project,
545,000 AMBAC Insured, 5.15%, 02/01/10............................................... 543,894
570,000 AMBAC Insured, 5.20%, 02/01/11............................................... 568,792
600,000 AMBAC Insured, 5.25%, 02/01/12............................................... 598,680
630,000 AMBAC Insured, 5.30%, 02/01/13............................................... 628,564
665,000 AMBAC Insured, 5.35%, 02/01/14............................................... 663,437
5,000,000 Northern California Power Agency Revenue, Multiple Capital Facilities, Series A,
MBIA Insured, 6.50%, 08/01/12 ............................................... 5,467,250
Northern California Power Agency Revenue, Refunding, Public Power
Hydroelectric Project No. 1,
3,200,000 AMBAC Insured, Pre-Refunded, 7.50%, 07/01/23................................. 4,097,984
5,000,000 Series A, AMBAC Insured, Pre-Refunded, 7.50%, 07/01/23....................... 5,193,650
Northern California Transmission Revenue, California/Oregon Transmission Project,
2,500,000 Series A, MBIA Insured, 6.25%, 05/01/10...................................... 2,694,125
4,000,000 Series A, MBIA Insured, 6.50%, 05/01/16...................................... 4,364,120
5,500,000 Series A, MBIA Insured, 5.25%, 05/01/20...................................... 5,410,515
Northern California Transmission Revenue, California/Oregon
Transmission Project, (cont.)
$ 12,405,000 Series A, MBIA Insured, 6.00%, 05/01/24...................................... $ 12,851,828
4,000,000 Series A, MBIA Insured, Pre-Refunded, 7.00%, 05/01/10........................ 4,488,560
18,050,000 Series A, MBIA Insured, Pre-Refunded, 7.00%, 05/01/24........................ 20,254,627
5,810,000 Norwalk Community Facilities Financing Authority, Lease Revenue, MBIA Insured,
6.90%, 02/01/21 ............................................................. 6,313,843
4,000,000 Oakland Special Revenue, Refunding, Series A, FGIC Insured, 7.60%, 08/01/21 .. 4,403,440
3,940,000 Oceanside Community Development COP, Public Parking Project, CGIC Insured,
Pre-Refunded, 7.875%, 04/01/19 .............................................. 4,870,549
Oceanside COP,
4,715,000 Corporation Yard Project, AMBAC Insured, Pre-Refunded, 7.30%, 08/01/21....... 5,558,938
1,000,000 Refunding, Civic Center Project, MBIA Insured, 5.75%, 08/01/15............... 1,028,050
5,000,000 Wateruse Finance Association of California, Series A, AMBAC Insured,
6.50%, 10/01/17.............................................................. 5,444,850
10,000,000 Ontario Redevelopment Financing Authority Revenue, Ontario Redevelopment
Project No. 1, MBIA Insured, 5.80%, 08/01/23 ................................ 10,183,200
Orange County CFD No. 86-1, Special Tax, Rancho Santa Margarita,
5,000,000 Series A, CGIC Insured, 7.30%, 08/15/09...................................... 5,464,400
10,000,000 Series A, CGIC Insured, Pre-Refunded, 7.625%, 07/01/18....................... 11,032,700
Orange County COP,
11,250,000 Civic Center Expansion Project, AMBAC Insured, 6.70%, 08/01/18............... 12,157,763
4,770,000 Juvenile Justice Center Facilities, AMBAC Insured, 6.375%, 06/01/11.......... 5,041,079
5,000,000 Juvenile Justice Center Facilities, AMBAC Insured, 6.00%, 06/01/17........... 5,159,400
3,500,000 Orange County Financing Authority Revenue, Tax Allocation, Refunding, Series A,
MBIA Insured, 6.50%, 09/01/22 ............................................... 3,722,740
4,875,000 Orange County Sanitation District, FGIC Insured, Pre-Refunded, 6.75%, 08/01/13 5,538,146
5,200,000 Orange RDAR, Tax Allocation, Refunding, Southwest Redevelopment Project,
Series A, AMBAC Insured, 5.70%, 10/01/23 .................................... 5,253,560
Oroville Public Finance Authority, Tax Allocation Revenue,
1,245,000 Oroville Redevelopment Project No. 1, AMBAC Insured, 5.90%, 09/15/21......... 1,296,145
2,890,000 Oroville Redevelopment Project No. 1, AMBAC Insured, 6.10%, 09/15/23......... 3,058,314
1,185,000 Otay Water District, COP, Water Facilities Project, MBIA Insured, 5.60%, 09/01/14 1,206,804
5,000,000 Oxnard Financing Authority, Solid Waste Revenue, AMBAC Insured,
6.00%, 05/01/16 ............................................................. 5,199,600
Oxnard Financing Authority Wastewater Revenue,
1,000,000 FGIC Insured, 5.50%, 06/01/14................................................ 1,010,840
1,410,000 FGIC Insured, 5.25%, 06/01/20................................................ 1,377,683
3,520,000 Oxnard Public Facilities Corp., COP, AMBAC Insured, Pre-Refunded,
7.50%, 09/01/06 ............................................................. 3,916,141
Palm Desert Financing Authority Tax Allocation Revenue, Project Area No. 2, Series A,
$ 2,490,000 MBIA Insured, 5.95%, 08/01/24 ............................................... $ 2,591,368
1,380,000 MBIA Insured, 5.85%, 08/01/25 ............................................... 1,424,464
2,250,000 Palmdale Water District, COP, Littlerock Dam Project, Series A, MBIA Insured,
5.75%, 10/01/23 ............................................................. 2,300,940
4,750,000 Paramount USD, COP, Master Lease Program, FSA Insured, 6.30%, 09/01/26 ....... 5,043,978
1,000,000 Petaluma COP, Refunding, Series A, AMBAC Insured, 5.625%, 08/01/13 ........... 1,022,600
8,000,000 Pico Rivera Public Financing Authority Revenue, Refunding, Water Enterprise
Project, Series A, FGIC Insured, 6.00%, 12/01/17 ............................ 8,381,520
1,000,000 Pinole RDA, Tax Allocation, Pinole Vista Redevelopment Project, Series A,
MBIA Insured, 6.125%, 08/01/17 .............................................. 1,049,600
1,500,000 Pittsburg Public Financing Authority, Wastewater Revenue, FGIC Insured,
Pre-Refunded, 6.80%, 06/01/22 ............................................... 1,702,995
Pittsburg RDA, Tax Allocation, Refunding, Los Medanos Community
Development Project,
3,000,000 MBIA Insured, Pre-Refunded, 7.50%, 08/01/14.................................. 3,125,520
5,000,000 Series B, CGIC Insured, 5.70%, 08/01/32...................................... 5,076,600
4,700,000 Series B, CGIC Insured, 5.80%, 08/01/34...................................... 4,827,605
3,745,000 Placer County COP, Jail Kitchen Project, MBIA Insured, 6.90%, 10/01/21 ....... 4,243,572
Placer County Water Agency Revenue, COP,
2,350,000 CGIC Insured, 5.90%, 07/01/25................................................ 2,425,224
1,285,000 Refunding, MBIA Insured, 5.625%, 07/01/18.................................... 1,304,326
5,500,000 Pleasant Hill RDA, Tax Allocation, Refunding, Pleasant Hill Commons Project,
CGIC Insured, 6.90%, 07/01/21 ............................................... 6,046,810
Port Hueneme RDA, Tax Allocation, Refunding, Central Community
Redevelopment Project,
2,000,000 AMBAC Insured, 5.50%, 05/01/23............................................... 2,004,160
1,915,000 Series A, AMBAC Insured, Pre-Refunded, 7.20%, 05/01/11....................... 1,975,035
Port of Oakland, Port Revenue,
1,500,000 Series B, BIG Insured, 7.25%, 11/01/16....................................... 1,593,270
1,165,000 Series C, BIG Insured, Pre-Refunded, 7.25%, 11/01/19......................... 1,237,743
Porterville COP, Refunding,
4,935,000 Sewer System and Improvement Project, AMBAC Insured, 6.30%, 10/01/18......... 5,289,284
6,075,000 Sewer System Project, AMBAC Insured, 6.30%, 10/01/18......................... 6,511,124
2,460,000 Poway RDA, Tax Allocation, Refunding, Parguay Redevelopment Project,
FGIC Insured, 5.75%, 12/15/26 ............................................... 2,502,755
3,000,000 Ramona Municipal Water District, COP, Refunding, AMBAC Insured,
7.20%, 10/01/10 ............................................................. 3,387,930
Rancho Cucamonga RDA, Tax Allocation, Refunding, Rancho Redevelopment Project,
$ 1,215,000 Series A, FGIC Insured, Pre-Refunded, 7.75%, 05/01/06........................ $ 1,298,641
9,690,000 Series A, FGIC Insured, Pre-Refunded, 7.70%, 05/01/16........................ 10,477,603
5,000,000 Redding Electric System Revenue, Refunding, COP, Series A, FGIC Insured,
5.50%, 06/01/11 ............................................................. 5,102,750
3,230,000 Redding Joint Powers Financing Authority, Water Revenue, Series A, AMBAC
Insured, 5.60%, 06/15/13 .................................................... 3,292,791
2,120,000 Redding RDA, Tax Allocation, Hilltop Cypress Redevelopment, Series C,
CGIC Insured, 6.00%, 09/01/22 ............................................... 2,211,330
1,500,000 Redlands COP, Series C, MBIA Insured, Pre-Refunded, 7.00%, 12/01/10 .......... 1,708,920
2,115,000 Redlands USD, Series B, CGIC Insured, 6.25%, 06/01/19 ........................ 2,253,025
1,000,000 Redondo Beach RDA, Tax Allocation, South Bay Center Redevelopment Project,
FGIC Insured, 8.625%, 05/01/14 .............................................. 1,070,250
2,745,000 Redwood City Public Financing Authority Revenue, Local Agency, Series A,
AMBAC Insured, 6.50%, 07/15/11 .............................................. 2,966,906
Riverside RDA,
12,540,000 Lease Revenue, Series A, AMBAC Insured, 6.375%, 10/01/23..................... 13,610,540
2,000,000 Lease Revenue, Series A, AMBAC Insured, 6.50%, 10/01/24...................... 2,195,720
2,200,000 Tax Allocation, Merged Redevelopment Project, Series A, MBIA Insured,
5.625%, 08/01/23............................................................. 2,222,968
2,000,000 Rohnert Park Public Building, COP, MBIA Insured, Pre-Refunded, 7.125%, 07/01/17 2,270,380
2,510,000 Rubidoux Community Service District COP, Water System Improvement Project,
AMBAC Insured, 6.20%, 12/01/14 .............................................. 2,664,942
11,800,000 Sacramento COP, MBIA Insured, 6.50%, 06/01/15 ................................ 12,599,332
Sacramento MUD, Electric Revenue,
1,425,000 cRefunding, Senior Lien, Series A, MBIA Insured, 5.75%, 08/15/13.............. 1,442,855
1,000,000 Series I, MBIA Insured, 6.00%, 01/01/24...................................... 1,052,170
1,000,000 Series R, FGIC Insured, Pre-Refunded, 7.125%, 02/01/13....................... 1,053,860
1,970,000 Series S, FGIC Insured, Pre-Refunded, 7.125%, 02/01/11....................... 2,076,104
2,530,000 Series S, FGIC Insured, Pre-Refunded, 6.625%, 02/01/17....................... 2,653,085
2,600,000 Series X, MBIA Insured, Pre-Refunded, 7.00%, 07/01/20........................ 2,938,312
3,000,000 Series Y, MBIA Insured, Pre-Refunded, 6.75%, 09/01/19........................ 3,412,620
2,000,000 Sacramento RDA, Tax Allocation, Merged Downtown Redevelopment Project A,
MBIA Insured, 6.50%, 11/01/13 ............................................... 2,147,820
5,300,000 San Bernardino County COP, Refunding, Capital Improvement Projects,
MBIA Insured, Pre-Refunded, 7.60%, 07/01/15 ................................. 5,507,813
5,680,000 San Bernardino County Mortgage Revenue, Refunding, Don Miguel Apartments
Project, MBIA Insured, 6.40%, 03/01/25 ...................................... 5,859,431
San Bernardino Joint Powers Financing Authority Revenue, Tax Allocation, Refunding,
$ 1,965,000 Northwest Redevelopment Project, Series E, MBIA Insured, Pre-Refunded,
7.375%, 01/01/15............................................................. $ 2,229,253
1,950,000 Series A, CGIC Insured, 5.75%, 10/01/25...................................... 1,979,757
3,515,000 Southeast Industrial Park, Series F, MBIA Insured, Pre-Refunded,
7.375%, 03/01/14............................................................. 4,002,847
4,265,000 State College Project No. 4, AMBAC Insured, Pre-Refunded, 7.20%, 09/01/08.... 4,783,112
2,060,000 State College Project, Series D, FGIC Insured, Pre-Refunded, 7.375%, 09/01/10 2,372,626
5,750,000 San Bernardino Municipal Water and Sewer Department, COP, FGIC Insured,
6.25%, 02/01/17 ............................................................. 6,044,285
2,382,000 San Bernardino RDA, Capital Appreciation, Series B, AMBAC Insured,
Pre-Refunded, 7.70%, 01/10/09 ............................................... 3,759,010
2,000,000 San Buenaventura COP, Water Project, AMBAC Insured, Pre-Refunded,
7.50%, 10/01/20 ............................................................. 2,313,740
2,250,000 San Buenaventura Public Facilities, Financing Authority Lease Revenue, Refunding,
CGIC Insured, 5.75%, 06/01/14 ............................................... 2,312,415
2,000,000 San Diego Community College District, COP, Series 1991, MBIA Insured,
6.50%, 12/01/12 ............................................................. 2,168,740
2,375,000 San Diego County COP, Inmate Reception Center and Cooling, MBIA Insured,
6.25%, 08/01/24 ............................................................. 2,541,844
San Diego Mortgage Revenue, Refunding, University Canyon North,
305,000 Series A, MBIA Insured, 5.125%, 07/01/03..................................... 307,544
3,105,000 Series A, MBIA Insured, 5.75%, 07/01/25...................................... 3,065,877
San Diego RDA, Tax Allocation, Center City Redevelopment,
3,000,000 Series B, AMBAC Insured, 5.375%, 09/01/15.................................... 3,000,870
3,000,000 Series B, AMBAC Insured, 5.40%, 09/01/16..................................... 3,006,480
2,580,000 San Francisco BART District Revenue, Sales Tax, FGIC Insured, 6.60%, 07/01/12 2,825,874
6,900,000 San Francisco City and County Airports, Common International Airport Revenue,
Series 5, FGIC Insured, 6.50%, 05/01/24 ..................................... 7,505,958
3,000,000 San Francisco City and County COP, Courthouse Project, CGIC Insured,
5.60%, 04/01/16 ............................................................. 3,032,130
San Francisco City and County Sewer Revenue,
730,000 AMBAC Insured, Pre-Refunded, 6.50%, 10/01/16................................. 801,343
2,000,000 Refunding, AMBAC Insured, 6.00%, 10/01/11.................................... 2,115,380
1,500,000 Series A, AMBAC Insured, Pre-Refunded, 7.25%, 10/01/15....................... 1,604,730
2,370,000 Series B, AMBAC Insured, Pre-Refunded, 7.25%, 10/01/15....................... 2,535,473
1,000,000 San Gabriel USD, COP, School Facilities Development Program, Series A,
FSA Insured, 6.00%, 09/01/15 ................................................ 1,049,550
3,000,000 San Jacinto USD, COP, Refunding Project, AMBAC Insured, 6.50%, 10/01/23 ...... 3,240,150
$ 8,740,000 San Jose Financing Authority Revenue, Convention Project, CGIC Insured,
6.40%, 09/01/17 ............................................................. $ 9,325,056
San Jose RDA, Tax Allocation, Merged Area Redevelopment Project,
3,500,000 Refunding, Series A, MBIA Insured, Pre-Refunded, 7.50%, 08/01/09............. 3,646,440
1,250,000 Series A, AMBAC Insured, Pre-Refunded, 6.90%, 08/01/11....................... 1,331,213
3,235,000 Series B, MBIA Insured, Pre-Refunded, 6.625%, 08/01/11....................... 3,554,197
10,495,000 San Marcos Public Facilities Authority Revenue, Tax Allocation, Refunding,
Series A, CGIC Insured, 5.50%, 08/01/23 ..................................... 10,464,879
2,250,000 San Mateo County Joint Powers Financing Authority, Lease Revenue, San Mateo
County Health Care Center, Series A, FSA Insured, 5.75%, 07/15/22 ........... 2,290,860
San Mateo County Transit District Revenue, Sales Tax,
4,100,000 Series A, MBIA Insured, Pre-Refunded, 6.70%, 06/01/10........................ 4,411,313
6,700,000 Series A, MBIA Insured, Pre-Refunded, 6.50%, 06/01/20........................ 7,178,380
San Ramon COP,
5,110,000 Central Park Expansion Project, CGIC Insured, 7.20%, 02/01/25................ 5,945,025
4,000,000 Public Financing Authority, CGIC Insured, Pre-Refunded, 7.80%, 01/01/19...... 4,200,040
12,070,000 Refunding, Capital Improvement Project, AMBAC Insured, 7.05%, 03/01/21....... 13,474,103
1,000,000 Sanger USD, Series A, CGIC Insured, 5.60%, 08/01/14 .......................... 1,009,540
3,250,000 Santa Ana COP, Refunding, Parking Facilities Project, Series A, AMBAC Insured,
6.125%, 06/01/16 ............................................................ 3,441,490
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 ............. 2,937,173
1,000,000 Santa Ana Financing Authority Water Revenue, MBIA Insured, 6.125%, 09/01/24 .. 1,056,230
10,000 Santa Ana HMR, Series A, FGIC Insured, 8.875%, 06/01/17 ...................... 10,534
Santa Barbara COP, Refunding,
3,575,000 Municipal Improvement Program, AMBAC Insured, 6.15%, 08/01/17................ 3,776,988
6,500,000 Water System Improvement Project, AMBAC Insured, 6.70%, 04/01/27............. 7,118,605
1,555,000 Santa Clara County COP, Board of Education Partners, Administration Building
Project, Series A, MBIA Insured, 6.00%, 04/01/25 ............................ 1,625,473
4,500,000 Santa Clara County COP, Partner Refunding Cap, Project I, AMBAC Insured,
6.25%, 10/01/16 ............................................................. 4,747,050
1,000,000 Santa Clara County Transit District, Sales Tax Revenue, Series A, AMBAC Insured,
6.25%, 06/01/21 ............................................................. 1,039,650
Santa Clara Electric Revenue,
1,350,000 Series A, MBIA Insured, 6.50%, 07/01/21...................................... 1,455,287
1,500,000 Series A, MBIA Insured, 5.75%, 07/01/24...................................... 1,523,220
3,300,000 Santa Clara Local Government Finance Authority Revenue, Refunding, BIG Insured,
Pre-Refunded, 7.25%, 02/01/13 ............................................... 3,655,542
4,000,000 Santa Clara RDA, Tax Allocation, Refunding, Bayshore North Project, AMBAC
Insured, Pre-Refunded, 7.50%, 06/01/08 ...................................... 4,142,040
Santa Cruz County COP,
$ 1,475,000 Capital Facilities Project, MBIA Insured, 6.70%, 09/01/20.................... $ 1,610,258
2,675,000 Sub-Joint Wastewater Treatment Project, AMBAC Insured, 6.20%, 09/01/19....... 2,843,659
3,600,000 Santa Cruz Hospital Revenue, Dominican Santa Cruz, Series A, MBIA Insured,
7.00%, 12/01/13 ............................................................. 3,813,768
11,830,000 Santa Fe Springs RDA, Tax Allocation, Redevelopment Project, Series A,
MBIA Insured, 6.40%, 09/01/22 ............................................... 12,773,443
2,750,000 Santa Fe Springs RDAR, Tax Allocation, Series A, AMBAC Insured, Pre-Refunded,
7.25%, 08/01/14 ............................................................. 3,077,883
Santa Maria COP, Local Water System, Refunding,
3,675,000 FGIC Insured, 5.50%, 08/01/13................................................ 3,707,303
1,785,000 FGIC Insured, 5.50%, 08/01/21................................................ 1,794,603
1,000,000 Santa Margarita/Dana Point Authority Revenue, Refunding, Improvement
Districts 3, 3A, 4 and 4A, Series B, MBIA Insured, 5.75%, 08/01/20 .......... 1,018,190
1,525,000 Santa Monica Community College District, Series B, AMBAC Insured,
5.75%, 07/01/20 ............................................................. 1,561,051
Santa Rosa High School District,
1,000,000 FGIC Insured, 5.90%, 05/01/16................................................ 1,041,500
1,050,000 Refunding, CGIC Insured, 5.75%, 05/01/18..................................... 1,072,859
2,000,000 Santa Rosa Wastewater Service Facilities District, Refunding & Improvement,
AMBAC Insured, 6.00%, 07/02/15 .............................................. 2,176,520
Santa Rosa Water Revenue,
1,115,000 Refunding, Series A, FGIC Insured, 5.25%, 09/01/12........................... 1,106,359
2,500,000 Series A, FGIC Insured, Pre-Refunded, 7.00%, 09/01/16........................ 2,782,350
2,000,000 Subregional Wastewater Project, Series A, AMBAC Insured, 6.50%, 09/01/16..... 2,135,940
3,450,000 Sebastopol CDA, Tax Allocation, Community Development Project, CGIC Insured,
6.85%, 12/01/20 ............................................................. 3,802,314
Selma Public Financing Authority Revenue,
145,000 Series A, MBIA Insured, 5.80%, 09/15/11...................................... 148,450
125,000 Series A, MBIA Insured, 5.80%, 09/15/12...................................... 127,453
2,400,000 Series A, MBIA Insured, 5.875%, 09/15/22..................................... 2,439,552
5,000,000 Simi Valley Public Financing Authority Revenue, Refunding, MBIA Insured,
5.75%, 09/01/23 ............................................................. 5,095,100
1,325,000 Sonoma CDA, COP, Refunding, Sonoma Creek Senior Housing Project,
AMBAC Insured, 6.75%, 02/01/13 .............................................. 1,425,024
6,500,000 South Coast Air Quality Management District Revenue, Refunding, Building Corp.,
MBIA Insured, 5.50%, 08/01/14 ............................................... 6,579,365
13,500,000 South Orange County Public Financing Authority Revenue, Refunding, Special Tax,
Senior Lien, Series A, MBIA Insured, 6.20%, 09/01/13 ........................ 14,334,570
Southern California Public Power Authority Revenue,
$ 2,500,000 Refunding, Palos Verde Project, Series B, FGIC Insured, 5.75%, 07/01/17...... $ 2,503,900
3,820,000 cRefunding, Southern Transmission Project, Subordinated Lien, MBIA Insured,
5.50%, 07/01/20............................................................... 3,784,436
8,000,000 Refunding, Sub-Crossover, Southern Transmission Project, MBIA Insured,
5.75%, 07/01/21.............................................................. 8,150,480
2,340,000 Refunding, Transmission Project, Series B, FGIC Insured, 7.375%, 07/01/21.... 2,436,010
4,000,000 Southgate Public Financing Authority Revenue, Tax Allocation, Southgate
Redevelopment Project No. 1, AMBAC Insured, 5.875%, 09/01/24 ................ 4,119,920
3,750,000 Stanton RDA, Tax Allocation, Refunding, Stanton Community Development Project,
AMBAC Insured, 5.45%, 12/01/17 .............................................. 3,740,250
4,000,000 Stockton COP, Wastewater Facility, AMBAC Insured, Pre-Refunded,
7.40%, 09/01/10 ............................................................. 4,375,440
1,640,000 Stockton-East Water District, COP, Series A, AMBAC Insured, Pre-Refunded,
7.30%, 04/01/20 ............................................................. 1,862,991
4,260,000 Suisun City RDA, Tax Allocation, Refunding, Suisun City Redevelopment Project,
MBIA Insured, 5.625%, 10/01/13 .............................................. 4,329,992
800,000 Sulphur Springs USD, COP, Series 1991, AMBAC Insured, 7.20%, 02/01/21 ........ 874,104
5,485,000 Sunnyvale RDA, Parking Revenue, Refunding, AMBAC Insured, 6.50%, 10/01/22 .... 5,861,874
2,785,000 Sunnyvale RDA, Tax Allocation, Refunding, Central Core Project, AMBAC Insured,
6.50%, 10/01/22 ............................................................. 2,976,357
4,000,000 Susanville Public Financing Authority Revenue, Series A, AMBAC Insured,
6.30%, 09/01/17 ............................................................. 4,217,000
1,335,000 Taft COP, Sewer Facilities Improvement Project, CGIC Insured, Pre-Refunded,
7.25%, 08/01/15 ............................................................. 1,464,214
2,000,000 Tehachapi Water and Sewer Revenue, Refunding, MBIA Insured, 6.75%, 11/01/20 .. 2,239,380
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 ................................. 4,235,440
765,000 Torrance COP, Refunding, Improvement Project, AMBAC Insured, Pre-Refunded,
7.20%, 04/01/16 ............................................................. 786,832
Tracy COP,
1,630,000 Tracy Public Facilities Corp., FGIC Insured, Pre-Refunded, 8.10%, 01/01/08... 1,689,430
2,300,000 Wastewater Enterprise Financing, AMBAC Insured, 5.25%, 12/01/13.............. 2,268,374
Tri-City Hospital District Revenue,
5,000,000 MBIA Insured, 7.90%, 02/01/18................................................ 5,463,800
2,350,000 MBIA Insured, 6.00%, 02/01/22................................................ 2,419,631
2,925,000 Truckee-Donner, Water System Improvement Project, MBIA Insured,
6.75%, 11/15/21 ............................................................. 3,199,335
$ 4,000,000 Tulare County COP, Capital Improvement Project, Refunding, Public Facilities Corp.,
BIG Insured, Pre-Refunded, 8.10%, 11/01/07 .................................. $ 4,363,640
1,500,000 Tulare Sewer Revenue, Refunding, AMBAC Insured, 5.70%, 11/15/18 .............. 1,531,650
1,500,000 Turlock Auxiliary Organization Revenue, COP, California State University,
Stanislaus Foundation, MBIA Insured, 5.875%, 06/01/22 ....................... 1,540,500
115,000 Turlock Irrigation District, COP, Administrative Facilities Project, FGIC Insured,
6.75%, 01/01/13 ............................................................. 120,183
7,125,000 Turlock Irrigation District Revenue, Refunding, Series A, MBIA Insured,
5.75%, 01/01/18 ............................................................. 7,271,703
6,200,000 Union City CDRA, Tax Allocation Revenue, Community Redevelopment Project,
AMBAC Insured, 5.75%, 10/01/22 .............................................. 6,305,710
University of California Revenue,
6,100,000 Housing System, Group A, Series X, MBIA Insured, Pre-Refunded,
7.60%, 11/01/18.............................................................. 6,414,576
2,800,000 Housing System, Group A-2, BIG Insured, Pre-Refunded, 7.80%, 11/01/15........ 2,942,995
3,750,000 Multiple Purpose Project, Series A, AMBAC Insured, Pre-Refunded,
6.75%, 09/01/23.............................................................. 4,142,024
1,000,000 Multiple Purpose Project, Series A, MBIA Insured, Pre-Refunded,
6.90%, 09/01/15.............................................................. 1,067,250
1,500,000 Multiple Purpose Project, Series A, MBIA Insured, Pre-Refunded,
7.00%, 09/01/23.............................................................. 1,603,260
Upland COP,
3,985,000 Refunding, Police Building Project, AMBAC Insured, 6.60%, 08/01/16........... 4,344,326
2,385,000 Water System Improvement Project, FGIC Insured, 6.60%, 08/01/16.............. 2,600,054
2,000,000 Water System Improvement Project, FGIC Insured, Pre-Refunded,
7.75%, 08/01/16.............................................................. 2,086,500
1,355,000 Vacaville Public Financing Authority Revenue, Tax Allocation, Refunding,
Vacaville Redevelopment Project, MBIA Insured, 6.35%, 09/01/22 .............. 1,428,386
4,855,000 Vallejo Revenue, Water Improvement Project, Series B, FGIC Insured,
6.50%, 11/01/14 ............................................................. 5,319,865
1,495,000 Vista USD, COP, MBIA Insured, 5.50%, 12/01/16 ................................ 1,499,065
2,200,000 Walnut Valley Water District, COP, Badillo Grand Transmission Project,
FGIC Insured, 6.125%, 02/01/18 .............................................. 2,290,023
1,800,000 Watsonville Solid Waste Revenue, MBIA Insured, 6.50%, 05/15/16 ............... 1,921,121
1,250,000 West Basin Municipal Water District, COP, Water Reclamation Project,
AMBAC Insured, Pre-Refunded, 6.85%, 08/01/16 ................................ 1,407,187
4,185,000 West Sacramento Financing Authority Revenue, MBIA Insured, 6.25%, 09/01/16 ... 4,498,163
3,340,000 West Sacramento RDA, Tax Allocation, West Sacramento Redevelopment Project,
MBIA Insured, 6.25%, 09/01/21 ............................................... 3,511,575
$ 4,150,000 Whittier Health Facilities Revenue, Refunding, Presbyterian Intercommunity Hospital,
MBIA Insured, 6.50%, 06/01/10 ............................................... $ 4,321,187
2,340,000 Whittier Solid Waste Revenue, Refunding, Series A, AMBAC Insured,
5.375%, 08/01/14 ............................................................ 2,349,430
2,000,000 Whittier Water Revenue, Series A, AMBAC Insured, 5.625%, 06/01/17 ............ 2,037,160
1,285,000 William S. Hart Joint School Authority, Special Tax Revenue, Refunding, CFD,
CGIC Insured, 6.60%, 09/01/18 ............................................... 1,423,330
750,000 Windsor Joint Powers Financing Authority, Wastewater Revenue, Refunding,
Series A, AMBAC Insured, 6.125%, 12/15/12 ................................... 799,582
-------------
Total Bonds (Cost $1,448,165,590)............................................. 1,558,418,368
-------------
a Zero Coupon Bonds.4%
28,405,000 San Bernardino County SFMR, Series A, GNMA Secured, ETM 05/01/22, (original
accretion rate 7.90%), 05/01/22 (Cost $4,543,458) ........................... 6,146,273
-------------
Total Long Term Investments (Cost $1,452,709,048)............................. 1,564,564,641
-------------
b Short Term Investments.1%
1,200,000 California Statewide CDA Revenue, COP, Sutter Health Obligated Group,
AMBAC Insured, Daily VRDN and Put, 5.90%, 07/01/15 (Cost $1,200,000) ........ 1,200,000
-------------
Total Investments (Cost $1,453,909,048)98.9%.................................. 1,565,764,641
Other Assets and Liabilities, Net1.1% ........................................ 17,535,950
-------------
Net Assets100.0%.............................................................. $1,583,300,591
=============
At December 31, 1995, the net unrealized appreciation based on the cost of
investments for income tax purposes of $1,453,909,048 was as follows:
Aggregate gross unrealized appreciation for all investments in which there was
an excess of value over tax cost............................................. $ 112,074,646
Aggregate gross unrealized depreciation for all investments in which there was
an excess of tax cost over value ............................................ (219,053)
-------------
Net unrealized appreciation................................................... $ 111,855,593
=============
</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
<TABLE>
<CAPTION>
Statement of Investments in Securities and Net Assets, December 31, 1995 (unaudited)
Face Value
Amount Franklin California Intermediate-Term Tax-Free Income Fund (Note 1)
Bonds 97.6%
ABAG Finance Authority of Nonprofit Corps., COP,
<S> <C> <C>
$ 535,000 5.50%, 06/01/03................................................................... $ 543,089
1,045,000 5.75%, 08/01/03................................................................... 1,083,864
ABAG Finance Corp., COP,
100,000 Refunding, Series A, 5.90%, 06/01/02.............................................. 104,044
100,000 Series B, 6.40%, 10/01/03......................................................... 106,574
Alameda County COP,
100,000 Capital Projects, Series 1992, 6.25%, 06/01/06.................................... 106,094
395,000 Series 1994, 5.70%, 04/01/02...................................................... 415,682
420,000 Series 1994, 5.80%, 04/01/03...................................................... 444,872
440,000 Series 1994, 5.90%, 04/01/04...................................................... 468,886
Atascadero USD, COP, Measure B, Capital Project,
220,000 Series B, 5.20%, 08/01/03......................................................... 218,090
200,000 Series B, 5.30%, 08/01/04......................................................... 198,092
Auburn COP, Refunding,
65,000 Civic Center Project, 5.10%, 09/01/99............................................. 65,361
65,000 Civic Center Project, 5.30%, 09/01/00............................................. 65,716
70,000 Civic Center Project, 5.45%, 09/01/01............................................. 71,254
75,000 Civic Center Project, 5.60%, 09/01/02............................................. 76,749
80,000 Civic Center Project, 5.70%, 09/01/03............................................. 82,087
80,000 Civic Center Project, 5.75%, 09/01/04............................................. 82,021
Bakersfield Central District Revenue, Development Agency, Tax Allocation, Refunding,
295,000 Downtown Bakersfield Redevelopment, 6.00%, 04/01/01............................... 304,449
310,000 Downtown Bakersfield Redevelopment, 6.10%, 04/01/02............................... 321,504
330,000 Downtown Bakersfield Redevelopment, 6.20%, 04/01/03............................... 343,811
350,000 Downtown Bakersfield Redevelopment, 6.30%, 04/01/04............................... 366,195
100,000 Bakersfield Hospital Revenue, Bakersfield Memorial Hospital Project, Series A,
5.70%, 01/01/00................................................................... 103,343
California Educational Facilities Authority Revenue, Refunding, Pooled College
and University Financing,
1,000,000 Refunding, Series B, 5.80%, 06/01/02.............................................. 1,040,010
1,105,000 Series B, 5.90%, 06/01/03......................................................... 1,154,747
100,000 California Health Facilities Financing, San Diego Hospital Association, Series B
MBIA Insured, 5.60%, 08/01/03.................................................... 106,858
California State Public Works, Board Lease Revenue, Department of Corrections,
250,000 Calpatria State Prison, Imperial County, Series A, 6.125%, 09/01/04............... 268,755
750,000 Refunding, State Prisons, Series A, 5.00%, 12/01/01............................... 767,280
California Statewide CDA Revenue, COP,
200,000 Refunding, Barton Memorial Hospital, Series B, 5.70%, 12/01/00.................... 210,904
450,000 Refunding, Barton Memorial Hospital, Series B, 6.40%, 12/01/05.................... 485,109
865,000 St. Joseph Health System Group, 6.00%, 07/01/06................................... 926,190
$ 585,000 California Statewide Communities Development Corp., COP, Pacific Homes, Series A,
5.50%, 04/01/04................................................................... $ 588,019
350,000 Campbell COP, Refunding, Civic Center Project, 5.60%, 10/01/03..................... 357,231
200,000 Carson RDA Project, Area No. 1, Refunding, 6.10%, 10/01/02......................... 210,338
1,000,000 Central Joint Powers Health Financing Authority, COP, Refunding, Community Central
Hospital, 5.25%, 02/01/04......................................................... 987,020
100,000 Clovis COP, Water System Improvement Project, AMBAC Insured, 5.90%, 03/01/03....... 108,352
Coalinga Public Financing Authority Revenue,
455,000 Series A, MBIA Insured, 5.10%, 08/01/04........................................... 467,058
1,405,000 Series B, 6.00%, 09/15/03......................................................... 1,433,592
Colton USD, CFD, Special Tax, Southridge Village, Phase III, Refunding,
515,000 CGIC Insured, 5.65%, 09/01/09..................................................... 526,284
550,000 CGIC Insured, 5.75%, 09/01/10..................................................... 565,340
Commerce Joint Powers Financing Authority, Water Facilities, Lease Revenue, Refunding,
340,000 Series A, 5.50%, 10/01/02......................................................... 346,480
360,000 Series A, 5.625%, 10/01/03........................................................ 366,858
470,000 Series A, 5.75%, 10/01/04......................................................... 485,928
Compton Sewer Revenue,
120,000 Series 1993, 5.40%, 07/01/98...................................................... 122,207
125,000 Series 1993, 5.60%, 07/01/99...................................................... 128,098
130,000 Series 1993, 5.70%, 07/01/00...................................................... 133,673
140,000 Series 1993, 5.80%, 07/01/01...................................................... 145,183
150,000 Series 1993, 5.90%, 07/01/02...................................................... 156,392
155,000 Series 1993, 6.00%, 07/01/03...................................................... 162,122
165,000 Series 1993, 6.10%, 07/01/04...................................................... 172,783
175,000 Series 1993, 6.20%, 07/01/05...................................................... 183,962
185,000 Series 1993, 6.30%, 07/01/06...................................................... 194,433
Concord RDA, Tax Allocation, Refunding, Central Concord Redevelopment Project,
625,000 Series A, 5.50%, 07/01/02......................................................... 629,056
655,000 Series A, 5.625%, 07/01/03........................................................ 660,764
500,000 Contra Costa County MFHR, Byron Park Project, Series C, 6.00%, 07/20/03............ 524,365
Danville Financing Authority Revenue, Sycamore Valley,
320,000 Reassessment District No. 93-2, 5.40%, 09/02/01................................... 325,744
500,000 Reassessment District No. 93-2, 5.60%, 09/02/02................................... 513,080
240,000 Reassessment District No. 93-2, 5.70%, 09/02/03................................... 247,025
975,000 Reassessment District No. 93-2, 5.80%, 09/02/04................................... 1,004,562
100,000 Desert Hospital District Revenue, COP, Desert Hospital Corp., CGIC Insured,
6.25%, 07/01/03................................................................... 109,891
920,000 Encinitas Union School District, COP, Measure B, Capital Projects, 5.20%, 09/01/03. 939,145
Fontana COP, Refunding, Police Facilities Project,
$ 330,000 Series 1993, 5.00%, 04/01/01...................................................... $ 326,829
350,000 Series 1993, 5.00%, 04/01/02...................................................... 344,271
365,000 Series 1993, 5.10%, 04/01/03...................................................... 358,262
1,150,000 Foster City Public Financing Authority Revenue, Community Development Project,
Series A, 5.60%, 09/01/03......................................................... 1,191,883
1,000,000 Fresno Joint Powers Financing Authority, Local Agency Revenue, Refunding,
Series A, 6.20%, 09/02/03......................................................... 1,024,980
Garden Grove CDA, Tax Allocation, Refunding, Garden Grove Community Project,
1,000,000 Series 1993, 5.00%, 10/01/99...................................................... 1,014,900
1,425,000 Series 1993, 5.40%, 10/01/04...................................................... 1,453,714
300,000 Garden Grove COP, Bahia Village/Emerald Isle Project, FSA Insured, 5.20%, 08/01/03. 311,001
Glendale Parking Facilities, Joint Powers Authority Revenue,
215,000 Series A, 5.10%, 03/01/01......................................................... 212,588
255,000 Series A, 5.20%, 03/01/02......................................................... 251,682
125,000 Series A, 5.30%, 03/01/03......................................................... 123,164
750,000 Goleta Water District Revenue, COP, Refunding, Goleta Reclamation Project,
FGIC Insured, 5.50%, 12/01/08..................................................... 774,833
3,935,000 Hesperia Public Financing Authority Revenue, Series A, 5.80%, 10/01/03............. 4,035,618
Hollister RDA, Tax Allocation, Hollister Community Development Project,
525,000 Series 1994, 5.35%, 10/01/03...................................................... 515,503
550,000 Series 1994, 5.45%, 10/01/04...................................................... 539,099
585,000 Series 1994, 5.55%, 10/01/05...................................................... 572,469
Imperial County Local Transportation Authority, Sales Tax Revenue,
490,000 Series 1993, 5.50%, 05/01/04...................................................... 487,697
515,000 Series 1993, 5.50%, 05/01/05...................................................... 508,681
1,500,000 Lake Elsinore Public Financing Authority, Tax Allocation Revenue, Lake Elsinore
Redevelopment Project, Series A, CGIC Insured, 5.40%, 09/15/08.................... 1,514,520
560,000 La Quinta RDA, Tax Allocation, Housing Redevelopment Project, Areas No. 1 and 2,
MBIA Insured, 5.40%, 09/01/07..................................................... 581,073
La Palma Community Development Commission, Tax Allocation, Refunding,
125,000 La Palma Community Development Project No. 1, 5.20%, 06/01/00..................... 121,075
130,000 La Palma Community Development Project No. 1, 5.40%, 06/01/01..................... 125,736
135,000 La Palma Community Development Project No. 1, 5.50%, 06/01/02..................... 129,917
145,000 La Palma Community Development Project No. 1, 5.60%, 06/01/03..................... 138,890
150,000 La Palma Community Development Project No. 1, 5.70%, 06/01/04..................... 143,055
160,000 La Palma Community Development Project No. 1, 5.80%, 06/01/05..................... 151,981
Lancaster RDA, Tax Allocation, Refunding,
35,000 Central Business District Redevelopment, 5.00%, 08/01/98.......................... 35,023
35,000 Central Business District Redevelopment, 5.125%, 08/01/99......................... 35,061
35,000 Central Business District Redevelopment, 5.25%, 08/01/00.......................... 35,041
Lancaster RDA, Tax Allocation, Refunding, (cont.)
$ 40,000 Central Business District Redevelopment, 5.375%, 08/01/01......................... $ 40,008
40,000 Central Business District Redevelopment, 5.50%, 08/01/02.......................... 39,954
45,000 Central Business District Redevelopment, 5.60%, 08/01/03.......................... 44,943
45,000 Central Business District Redevelopment, 5.70%, 08/01/04.......................... 44,937
50,000 Central Business District Redevelopment, 5.70%, 08/01/05.......................... 49,562
50,000 Fox Field Redevelopment Project Area, 5.00%, 08/01/98............................. 50,034
55,000 Fox Field Redevelopment Project Area, 5.125%, 08/01/99............................ 55,095
55,000 Fox Field Redevelopment Project Area, 5.25%, 08/01/00............................. 55,064
60,000 Fox Field Redevelopment Project Area, 5.375%, 08/01/01............................ 60,011
65,000 Fox Field Redevelopment Project Area, 5.50%, 08/01/02............................. 64,926
65,000 Fox Field Redevelopment Project Area, 5.60%, 08/01/03............................. 64,917
70,000 Fox Field Redevelopment Project Area, 5.70%, 08/01/04............................. 69,902
75,000 Fox Field Redevelopment Project Area, 5.70%, 08/01/05............................. 74,342
990,000 Lemon Grove MFHR, Refunding, Hillside Terrace Apartments, 5.375%, 01/01/19......... 991,624
Los Angeles County COP, Insured, Health Clinic,
40,000 Series E, 4.60%, 12/01/99......................................................... 39,548
45,000 Series E, 4.75%, 12/01/00......................................................... 44,475
45,000 Series E, 4.85%, 12/01/01......................................................... 44,498
45,000 Series E, 4.95%, 12/01/02......................................................... 44,429
Los Angeles County Transport Commission, COP,
100,000 Series B, 5.90%, 07/01/00......................................................... 105,927
200,000 Series B, 6.00%, 07/01/01......................................................... 214,152
2,000,000 Los Angeles County Wastewater Systems Revenue, Refunding, Series D, FGIC Insured,
5.375%, 11/01/06.................................................................. 2,077,980
100,000 Los Angeles Judgement Obligation Bonds, Series A, 5.00%, 08/01/01.................. 103,233
Los Angeles MFHR, Refunding,
185,000 Series G, FSA Insured, 4.90%, 01/01/02............................................ 187,200
235,000 Series G, FSA Insured, 4.90%, 07/01/02............................................ 237,994
205,000 Series G, FSA Insured, 5.00%, 01/01/03............................................ 207,774
245,000 Series G, FSA Insured, 5.00%, 07/01/03............................................ 248,513
220,000 Series G, FSA Insured, 5.10%, 01/01/04............................................ 223,315
260,000 Series G, FSA Insured, 5.10%, 07/01/04............................................ 264,116
600,000 Los Angeles Municipal Improvement Corp., Lease Revenue, Refunding, Central Library
Project, Series B, 4.875%, 06/01/01............................................... 596,172
1,000,000 Los Angeles USD, COP, Refunding, Multiple Property Project, FSA Insured,
5.00%, 11/01/04................................................................... 1,000,600
Lynwood Public Financing Authority Revenue,
1,820,000 Series A, AMBAC Insured, 5.10%, 09/01/03.......................................... 1,887,577
565,000 Water Systems Improvement Project, 6.15%, 06/01/08................................ 577,040
515,000 Madera COP, Refunding, Madera Community Hospital, 5.10%, 03/01/03.................. 511,307
Madera RDA, Tax Revenue, Refunding, Madera Redevelopment Project,
$ 175,000 CGIC Insured, 5.15%, 09/01/02..................................................... $ 181,267
185,000 CGIC Insured, 5.25%, 09/01/03..................................................... 192,433
195,000 CGIC Insured, 5.35%, 09/01/04..................................................... 203,635
540,000 Merced Irrigation District, COP, Water Facilities Project, 6.125%, 11/01/03........ 574,938
715,000 Merced Public Financing Authority, Local Agency Revenue, Tax Allocation, Series A,
5.00%, 12/01/04................................................................... 697,904
MidPeninsula Regional Open Space District, COP, Special District Association
Finance Corp.,
510,000 Series 1993, 5.10%, 09/01/02...................................................... 518,599
530,000 Series 1993, 5.20%, 09/01/03...................................................... 540,012
700,000 Modesto Irrigation District, Financing Authority Revenue, Domestic Water Project,
Series C, AMBAC Insured, 5.50%, 09/01/08.......................................... 726,194
100,000 Mojave GO, Water Agency, Improvement, District M, Morongo Basin, 6.20%, 09/01/01... 106,653
100,000 Morgan Hill RDA, Tax Allocation, Refunding, 5.70%, 03/01/01........................ 102,265
100,000 Mount Diablo Hospital District Revenue, Series A, AMBAC Insured, 5.10%, 12/01/03... 103,145
Mountain View Shoreline Regional Park, Community Tax Allocation,
335,000 Series A, 5.00%, 08/01/02......................................................... 332,766
785,000 Series A, 5.10%, 08/01/03......................................................... 779,128
540,000 Series A, 5.20%, 08/01/04......................................................... 535,556
500,000 New Haven USD, COP, Refunding, 5.30%, 07/01/01..................................... 516,810
300,000 Newark USD, COP, Crossover Refunding, 5.75%, 09/01/02.............................. 306,501
500,000 North City West School Facilities Financing Authority, Special Tax, Refunding, Series B,
CGIC Insured, 5.625%, 09/01/08.................................................... 516,205
100,000 Northern California Public Power Agency Revenue, Refunding, Geothermal Project
No. 3, Series A, 7.00%, 07/01/07.................................................. 103,030
1,745,000 Oakland USD, Alameda County COP, Refunding, 5.00%, 09/15/99........................ 1,739,050
Ontario Redevelopment Financing Authority Revenue,
1,000,000 Community Facility, No. 1, AD Nos. 97B-100B-105R, Series A, CGIC Insured
5.60%, 09/02/03.................................................................. 1,065,880
1,175,000 Project No. 1, MBIA Insured, ETM 08/01/03, 5.10%, 08/01/03........................ 1,219,779
800,000 Orange County Development Agency, Tax Allocation, Refunding, Santa Ana Heights
Project Area, 5.90%, 09/01/04..................................................... 791,920
Orange County Local Transportation Authority, Sales Tax Revenues,
500,000 First Senior Measure M, 6.00%, 02/15/06........................................... 531,520
1,000,000 Second Senior Measure M, 4.70%, 02/15/05.......................................... 973,200
500,000 Orange County MFHR, Villa Santiago Rehabilitation Project, FNMA Insured,
5.60%, 10/01/27................................................................... 511,040
1,715,000 Paramount RDA, Tax Allocation, Refunding, Redevelopment Project, Area No. 1,
6.05%, 08/01/05................................................................... 1,822,428
Paso Robles Union School District,
$ 1,635,000 COP, 5.75%, 08/01/03.............................................................. $ 1,719,873
300,000 COP, Measure D, Capital Projects, Phase III, 5.75%, 08/01/02...................... 312,975
Pismo Beach Public Financing Authority Revenue,
45,000 Series 1993, 6.25%, 09/15/01...................................................... 46,148
50,000 Series 1993, 6.40%, 09/15/02...................................................... 51,324
50,000 Series 1993, 6.50%, 09/15/03...................................................... 51,323
55,000 Series 1993, 6.55%, 09/15/04...................................................... 56,396
1,490,000 Pleasant Hill RDA, RMR, Refunding, 5.40%, 02/01/05................................. 1,546,203
Rialto RDA, Tax Allocation, Refunding, Industrial Redevelopment,
270,000 Series A, 5.40%, 09/01/02......................................................... 272,832
280,000 Series A, 5.50%, 09/01/03......................................................... 283,290
Riverside County Asset Leasing Corp., Leasehold Revenue, Riverside County
Hospital Project,
200,000 Series A, 5.90%, 06/01/02......................................................... 209,420
200,000 Series A, 6.00%, 06/01/04......................................................... 210,356
1,000,000 Sacramento MUD, Electric Revenue, Series E, 5.25%, 05/15/03........................ 1,035,730
San Bernardino City USD, COP, Refunding,
1,030,000 Series 1994, 4.625%, 05/01/02..................................................... 996,731
1,185,000 Series 1994, 4.75%, 05/01/03...................................................... 1,147,163
170,000 San Bernardino County Mortgage Revenue, Refunding, Don Miguel Apartments Project,
MBIA Insured, 6.00%, 09/01/03..................................................... 179,255
San Clemente, 1915 Act, Refunding,
415,000 AD No. 85-1, 5.00%, 09/02/02...................................................... 411,726
435,000 AD No. 85-1, 5.10%, 09/02/03...................................................... 431,163
460,000 AD No. 85-1, 5.20%, 09/02/04...................................................... 455,543
San Diego County COP,
100,000 Children's Center Project, 5.50%, 04/01/99........................................ 101,446
100,000 Children's Center Project, 6.00%, 10/01/02........................................ 101,586
435,000 San Diego Mortgage Revenue, Refunding, Mariners Cove, Series B, 5.125%, 09/01/03... 438,667
100,000 San Diego Port Facilities Revenue, Refunding, National Steel & Shipbuilding Co.,
6.60%, 12/01/02................................................................... 94,589
San Francisco City and County RDAR,
300,000 Hotel Tax Revenue, CGIC Insured, 5.80%, 07/01/01.................................. 321,498
245,000 Hotel Tax Revenue, CGIC Insured, 5.90%, 07/01/02.................................. 265,269
40,000 Refunding, Series A, MBIA Insured, 6.125%, 07/01/02............................... 40,039
750,000 San Gorgonio Memorial Health Care District, Health Facility Revenue, Insured,
6.375%, 06/01/08.................................................................. 792,623
400,000 San Joaquin County COP, General Hospital Project, 5.90%, 09/01/03.................. 417,984
300,000 San Jose Financing Authority Revenue, Refunding, Convention Center Project,
Series C, 5.75%, 09/01/03......................................................... 315,705
$ 600,000 San Juan USD, COP, Gold River Elementary School Project, 5.65%, 04/01/03........... $ 600,942
San Ramon COP,
85,000 Capital Improvements Project, 5.20%, 03/01/01..................................... 86,299
90,000 Capital Improvements Project, 5.30%, 03/01/02..................................... 91,600
95,000 Capital Improvements Project, 5.40%, 03/01/03..................................... 96,912
100,000 Capital Improvements Project, 5.50%, 03/01/04..................................... 102,233
105,000 Capital Improvements Project, 5.60%, 03/01/05..................................... 107,560
110,000 Capital Improvements Project, 5.70%, 03/01/06..................................... 112,670
120,000 Capital Improvements Project, 5.75%, 03/01/07..................................... 122,471
125,000 Capital Improvements Project, 5.80%, 03/01/08..................................... 127,119
985,000 Santa Barbara RDA, Tax Allocation, Central City Redevelopment Project, 6.00%, 03/01/03 1,013,732
100,000 Santa Monica Parking Authority, Lease Revenue, Refunding, 6.00%, 07/01/03.......... 107,606
Sebastopol COP, Refunding,
200,000 Series 1994, 5.50%, 06/01/03...................................................... 202,046
215,000 Series 1994, 5.60%, 06/01/04...................................................... 217,427
240,000 Series 1994, 5.70%, 06/01/05...................................................... 242,947
Selma Public Financing Authority Revenue,
100,000 Series A, MBIA Insured, 5.25%, 09/15/02........................................... 103,265
115,000 Series A, MBIA Insured, 5.50%, 09/15/04........................................... 118,976
120,000 Series A, MBIA Insured, 5.60%, 09/15/05........................................... 124,138
125,000 Series A, MBIA Insured, 5.65%, 09/15/06........................................... 129,039
135,000 Series A, MBIA Insured, 5.70%, 09/15/07........................................... 139,072
140,000 Series A, MBIA Insured, 5.70%, 09/15/08........................................... 143,633
150,000 Series A, MBIA Insured, 5.75%, 09/15/09........................................... 153,888
155,000 Series A, MBIA Insured, 5.75%, 09/15/10........................................... 158,692
100,000 Shasta Joint Powers Financing Authority Lease Revenue, Courthouse Improvement
Project, Series A, 5.80%, 06/01/00................................................ 102,608
50,000 Solano Beach COP, City Hall Project, 5.80%, 10/01/02............................... 52,788
Solano Beach COP, Justice Facility and Public Building Project, Refunding,
20,000 5.10%, 10/01/99................................................................... 20,012
1,100,000 5.875%, 10/01/05.................................................................. 1,120,064
South San Francisco, Capital Improvements Financing Authority Revenue, Refunding,
195,000 South San Francisco Conference Center, 5.70%, 09/01/02............................ 200,191
205,000 South San Francisco Conference Center, 5.80%, 09/01/03............................ 211,105
215,000 South San Francisco Conference Center, 5.90%, 09/01/04............................ 222,037
100,000 Southern California Rapid Transit District Revenue, Special Benefit, AD No. A2,
5.80%, 09/01/01................................................................... 105,860
Sunline Transport Agency, COP, Transport Finance Corp.,
450,000 Series B, 5.50%, 07/01/03......................................................... 454,946
445,000 Series B, 5.75%, 07/01/06......................................................... 450,838
$ 100,000 Susanville Public Financing Authority Revenue, Series A, AMBAC Insured,
5.90%, 09/01/02................................................................... $ 107,355
Tahoe City PUD, COP, Capital Facilities Project,
290,000 Series B, 6.05%, 06/01/01......................................................... 301,612
835,000 Series B, 6.15%, 06/01/02......................................................... 873,552
545,000 Series B, 6.30%, 06/01/04......................................................... 574,376
Tehachapi Cummings, County Water District Revenue, COP, Capital Improvement Project,
280,000 MBIA Insured, 5.50%, 08/01/04..................................................... 296,254
300,000 MBIA Insured, 5.60%, 08/01/05..................................................... 317,343
320,000 MBIA Insured, 5.75%, 08/01/06..................................................... 339,533
600,000 Temecula RDAR, Tax Allocation, Temecula Redevelopment Project No. 1, Series A,
5.40%, 02/01/04................................................................... 603,821
370,000 Temecula Valley USD, Series E, CGIC Insured, 5.65%, 09/01/07....................... 393,716
Templeton USD, COP, Measure C, Capital Projects,
375,000 Series A, Phase III, 5.00%, 03/01/03.............................................. 376,765
580,000 Series A, Phase III, 5.00%, 03/01/05.............................................. 574,918
100,000 Torrance USD, COP, Series A, 5.85%, 10/01/99....................................... 101,902
200,000 Travis USD, Foxboro Elementary School Project, 6.30%, 09/01/02..................... 213,503
Trinity County PUD, COP, Refunding, Electric District Facilities,
340,000 Series 1993, 5.80%, 04/01/01...................................................... 347,656
360,000 Series 1993, 5.90%, 04/01/02...................................................... 369,391
380,000 Series 1993, 6.00%, 04/01/03...................................................... 391,182
100,000 Tuolumne County COP, Multiple Facilities Project, 5.80%, 06/01/98.................. 101,291
Ventura USD, COP,
305,000 Series A, 5.90%, 04/01/04......................................................... 316,598
320,000 Series A, 6.00%, 04/01/05......................................................... 332,125
340,000 Series A, 6.10%, 04/01/06......................................................... 353,868
365,000 Series A, 6.20%, 04/01/07......................................................... 379,833
385,000 Series A, 6.30%, 04/01/08......................................................... 400,588
410,000 Series A, 6.40%, 04/01/09......................................................... 428,270
Watsonville RDA, Tax Allocation, Watsonville Redevelopment Project,
510,000 Series 1993, 6.00%, 08/01/02...................................................... 510,213
540,000 Series 1993, 6.10%, 08/01/03...................................................... 540,221
-------------
Total Bonds (Cost $92,272,150)..................................................... $95,493,647
-------------
b Short Term Investments.9%
500,000 California PCFA Revenue, Shell Oil Co., Refunding, Project A, Daily VRDN and Put,
5.90%, 10/01/06................................................................... 500,000
400,000 Irvine 1915 Act, AD No. 94-15, Daily VRDN and Put, 5.90%, 09/02/20................. 400,000
-------------
Total Short Term Investments (Cost $900,000)....................................... 900,000
-------------
Total Investments (Cost $93,712,150)98.5%.......................................... $96,393,647
Other Assets and Liabilities, Net1.5%.............................................. 1,504,447
-------------
Net Assets100.0%................................................................... $97,898,094
=============
At December 31, 1995, the net unrealized appreciation based on the cost of investments
for income tax purposes of $93,712,150 was as follows:
Aggregate gross unrealized appreciation for all investments in which there was an
excess of value over tax cost..................................................... $ 2,830,505
Aggregate gross unrealized depreciation for all investments in which there was an
excess of tax cost over value..................................................... (149,008)
-------------
Net unrealized appreciation........................................................ $ 2,681,497
=============
</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
CFD - Community Facilities District
CGIC - Capital Guaranty Insurance Co.
COP - Certificate of Participation
ETM - Escrow to Maturity
FGIC - Financial Guaranty Insurance Co.
FNMA - Federal National Mortgage Association
FSA - Financial Security Assistance
GO - General Obligation
MBIA - Municipal Bond Investors Assurance Corp.
MFHR - Multi-Family Housing Revenue
MUD - Municipal Utility District
PCFA - Pollution Control Financing Authority
PUD - Public Utility District
RDA - Redevelopment Agency
RDAR - Redevelopment Agency Revenue
RMR - Residential Mortgage Revenue
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).
The accompanying notes are an integral part of these financial statements.
FRANKLIN CALIFORNIA TAX-FREE TRUST
Statement of Investments in Securities and Net Assets, December 31, 1995
(unaudited)
<TABLE>
<CAPTION>
Face Value
Amount Franklin California Tax-Exempt Money Fund (Note 1)
Investments 99.9%
<C> <C> <C>
$ 1,328,000 b ABAG Revenue, Pooled Projects, Series 1987, Weekly VRDN and Put,
4.765%, 04/01/97............................................................... $ 1,328,000
1,000,000 b Alameda County MFMR, Refunding, Series A, Weekly VRDN and Put,
5.00%, 05/15/15................................................................ 1,000,000
2,700,000 b Big Bear Lake Industrial Revenue, Southwest Gas Corp. Project, Series A, Weekly
VRDN and Put, 5.05%, 12/01/28.................................................. 2,700,000
1,400,000 b Burbank RDA, MFR, Series A, Weekly VRDN and Put, 4.80%, 11/01/10................ 1,400,000
2,820,000 b Butte County Housing Authority MFR, Pine Tree Apartments Project, Weekly VRDN
and Put, 5.10%, 12/01/10....................................................... 2,820,000
1,200,000 b California Dept. of Water Resources, Central Valley Project Revenue, Water Systems
Series N, Weekly VRDN and Put, 4.80%, 12/01/25................................. 1,200,000
b California Health Facilities Financing Authority Revenue,
3,600,000 Catholic Health Care, Series B, MBIA Insured, Weekly VRDN and Put,
4.85%, 07/01/16................................................................ 3,600,000
2,200,000 Catholic Health Care, Series C, MBIA Insured, Weekly VRDN and Put,
4.85%, 07/01/20................................................................ 2,200,000
2,500,000 Children's Hospital, MBIA Insured, Weekly VRDN and Put, 4.75%, 11/01/21........ 2,500,000
3,000,000 Pool Program, Weekly VRDN and Put, 4.95%, 09/01/20............................. 3,000,000
7,400,000 Refunding, Catholic West Facility, Series B, Weekly VRDN and Put,
4.85%, 07/01/05................................................................ 7,400,000
2,100,000 Santa Barbara Cottage Hospital, Series B, Weekly VRDN and Put,
4.75%, 09/01/05................................................................ 2,100,000
1,300,000 St. Francis Medical Center, Series F, MBIA Insured, Weekly VRDN and Put,
4.85%, 07/01/10................................................................ 1,300,000
200,000 St. Francis Memorial Hospital, ACES, Series B, Daily VRDN and Put,
5.90%, 11/01/19................................................................ 200,000
2,300,000 St. Joseph Health System, Series B, Daily VRDN and Put, 5.90%, 07/01/09........ 2,300,000
620,000 St. Joseph Health System, Series B, Daily VRDN and Put, 5.90%, 07/01/13........ 620,000
1,000,000 Sutter Health, Series A, Daily VRDN and Put, 5.90%, 03/01/20................... 1,000,000
4,450,000 b California Higher Education Loan Authority, Inc., Student Loan Revenue, Refunding,
Series E-1, Weekly VRDN and Put, 5.25%, 12/01/22............................... 4,450,000
California PCFA, PCR,
2,600,000 bHomestake Mining, Series 1984-A, Weekly VRDN and Put, 4.80%, 05/01/04.......... 2,600,000
4,700,000 bOccidental Geo/Santa Fe Geothermal, Monthly VRDN, Weekly Put,
3.55%, 09/01/13................................................................. 4,700,000
3,000,000 Pacific Gas & Electric Corp., TECP, 3.30%, 01/24/96............................ 3,000,000
2,505,000 Pacific Gas & Electric Corp., TECP, 3.70%, 02/07/96............................ 2,505,000
15,000,000 Refunding, Pacific Gas & Electric Corp., Series C, TECP, 3.65%, 01/16/96....... 15,000,000
9,000,000 Refunding, Pacific Gas & Electric Corp., Series E, TECP, 3.65%, 01/09/96....... 9,000,000
1,300,000 bRefunding, Shell Oil Co. Project, Series A, Daily VRDN and Put, 5.90%, 10/01/06 1,300,000
400,000 bRefunding, Shell Oil Co. Project, Series A, Daily VRDN and Put, 5.90%, 10/01/07 400,000
California PCFA, PCR, (cont.)
$ 900,000 bRefunding, Shell Oil Co. Project, Series A, Daily VRDN and Put, 5.90%, 10/01/08 $ 900,000
4,500,000 bRefunding, Shell Oil Co. Project, Series A, Daily VRDN and Put, 5.90%, 10/01/09 4,500,000
1,300,000 bRefunding, Shell Oil Co. Project, Series A, Daily VRDN and Put, 5.90%, 10/01/10 1,300,000
4,400,000 bRefunding, Shell Oil Co. Project, Series B, Daily VRDN and Put, 5.90%, 10/01/11 4,400,000
5,100,000 bRefunding, Shell Oil Co. Project, Series C, Daily VRDN and Put, 5.90%, 11/01/00 5,100,000
1,000,000 bReynolds Metals Co. Project, Weekly VRDN and Put, 5.10%, 12/01/15.............. 1,000,000
15,000,000 bSouthern California Edison Co., Series A, Daily VRDN and Put, 5.40%, 02/28/08.. 15,000,000
1,000,000 bSouthern California Edison Co., Series B, Daily VRDN and Put, 5.40%, 02/28/08.. 1,000,000
6,600,000 bSouthern California Edison Co., Series C, Daily VRDN and Put, 5.40%, 02/28/08.. 6,600,000
2,200,000 Southern California Edison Co., Series C, TECP, 3.85%, 01/10/96................ 2,200,000
1,000,000 Southern California Edison Co., Series C, TECP, 3.60%, 02/13/96................ 1,000,000
1,900,000 bSouthern California Edison Co., Series D, Daily VRDN and Put, 5.40%, 02/28/08.. 1,900,000
3,650,000 Southern California Edison Co., Series D, TECP, 3.85%, 01/10/96................ 3,650,000
7,100,000 Southern California Edison Co., TECP, 3.70%, 01/10/96.......................... 7,100,000
4,400,000 Southern California Edison Co., TECP, 3.35%, 01/16/96.......................... 4,400,000
b California PCFA, Resource Recovery Revenue,
9,500,000 Atlantic Richfield Co. Project, Series A, Daily VRDN and Put, 6.05%, 12/01/24.. 9,500,000
5,000,000 Burney Forest Products Project, Series A, Daily VRDN and Put, 5.00%, 09/01/20.. 5,000,000
2,200,000 OMS Equity, Stanislaus Project, Daily VRDN and Put, 6.00%, 12/01/17............ 2,200,000
b California PCFA, Solid Waste Disposal Revenue,
1,200,000 Colmac Energy Project, Series A, Weekly VRDN and Put, 5.05%, 12/01/16.......... 1,200,000
8,800,000 Shell Oil Co. Martinez Project, Series A, Daily VRDN and Put, 6.05%, 10/01/24.. 8,800,000
19,500,000 b California Public Capital Improvements Financing Authority Revenue, Pooled Project,
Series 1988-C, Quarterly VRDN and Put, 3.70%, 01/05/96......................... 19,500,000
29,870,000 California State RAN, Series C, 5.75%, 04/25/96................................. 30,068,296
b California Statewide Communities Development Authority Revenue, COP,
10,000,000 Apartment Development Revenue, Refunding, Subseries A-3, Weekly VRDN
and Put, 4.70%, 05/15/25....................................................... 10,000,000
9,000,000 Apartment Development Revenue, Refunding, Subseries A-6, Weekly VRDN
and Put, 4.90%, 05/15/25....................................................... 9,000,000
9,700,000 Chevron Co., Daily VRDN and Put, 6.05%, 12/15/24............................... 9,700,000
2,400,000 Refunding, House Ear Institution, Daily VRDN and Put, 6.00%, 12/01/18.......... 2,400,000
2,800,000 Refunding, St. Joseph Health Systems, Weekly VRDN and Put, 4.90%, 07/01/08..... 2,800,000
b California Statewide Communities Development Corp. Revenue,
2,550,000 American Kleaner, Series C, Weekly VRDN and Put, 4.90%, 12/01/19............... 2,550,000
1,700,000 Karcher Property Project, Series C, Weekly VRDN and Put, 4.90%, 12/01/19....... 1,700,000
800,000 b Carlsbad MFHR, Refunding, La Costa Apartments Project, Series A, Weekly VRDN
and Put, 4.90%, 06/01/11....................................................... 800,000
2,545,000 b Chico MFMR, Webb Homes Project, Monthly VRDN, Weekly Put, 3.85%, 01/01/10....... 2,545,000
b Concord MFMR,
$ 8,600,000 Arcadian, Series A, Weekly VRDN and Put, 5.00%, 07/15/18....................... $ 8,600,000
500,000 Bel Air Apartments, Issue A, Weekly VRDN and Put, 5.00%, 12/01/16.............. 500,000
600,000 b Contra Costa County Housing Authority, MFMR, Lakeshore Facility, Series A,
FNMA Secured, Weekly VRDN and Put, 5.00%, 11/15/12............................. 600,000
7,400,000 b Contra Costa Transportation Authority, Sales Tax Revenue, Series A, Weekly VRDN
and Put, 4.90%, 03/01/09....................................................... 7,400,000
b Duarte RDA, COP,
1,000,000 Johnson Duarte Project, Series B, Weekly VRDN and Put, 4.90%, 12/01/14......... 1,000,000
400,000 Piken Duarte Partnership, Series A, Weekly VRDN and Put, 4.90%, 12/01/14....... 400,000
6,000,000 East Bay MUD, TECP, 3.55%, 02/14/96............................................. 6,000,000
2,700,000 East Bay MUD, TECP, 3.60%, 02/14/96............................................. 2,700,000
7,000,000 East Bay MUD, Water Systems Revenue, Series D, 7.50%, 03/01/96.................. 7,219,408
700,000 b Escondido MFHR, Morning View Terrace, Series A, Weekly VRDN and Put,
3.50%, 02/15/07................................................................ 700,000
1,000,000 b Fontana MFMR, Oakcrest, Series A, Weekly VRDN and Put, 5.00%, 07/15/18.......... 1,000,000
b Foothill/Eastern Transportation Corridor Agency, California Toll Road Revenue,
15,400,000 Series B, Weekly VRDN and Put, 4.75%, 01/02/35................................. 15,400,000
5,000,000 Series C, Weekly VRDN and Put, 4.80%, 01/02/35................................. 5,000,000
10,000,000 Series E, Weekly VRDN and Put, 4.85%, 01/02/35................................. 10,000,000
1,480,000 b Independent Cities Lease Finance Authority Revenue, Pooled Projects, Weekly
VRDN and Put, 4.90%, 06/01/98.................................................. 1,480,000
700,000 b Irvine Ranch Water District, Consolidated District Nos. 105, 140, 240 and 250,
Daily VRDN and Put, 5.90%, 01/01/21............................................ 700,000
8,400,000 b Irvine Ranch Water District, Consolidated District Nos. 105, 250, and 290,
Daily VRDN and Put, 5.90%, 08/01/16............................................ 8,400,000
b Kern County COP, Kern Public Facilities Project,
2,300,000 Series A, Weekly VRDN and Put, 4.85%, 08/01/06................................. 2,300,000
400,000 Series C, Weekly VRDN and Put, 4.85%, 08/01/06................................. 400,000
500,000 Series D, Weekly VRDN and Put, 4.85%, 08/01/06................................. 500,000
900,000 b Lancaster RDA, MFHR, Westwood Park Apartments, Series 1985-K, Weekly
VRDN and Put, 4.80%, 12/01/07.................................................. 900,000
400,000 b Los Angeles County COP, Los Angeles County Museum of Art, Series B,
Weekly VRDN and Put, 4.85%, 11/01/05........................................... 400,000
b Los Angeles County Housing Authority, MFHR,
1,600,000 Harbor Cove Project, Series E, Weekly VRDN and Put, 5.15%, 10/01/06............ 1,600,000
4,500,000 Sand Canyon Ranch Project, Series F, Weekly VRDN and Put, 5.30%, 11/01/06...... 4,500,000
100,000 b Los Angeles County IDA, IDR, Weekly VRDN and Put, 4.75%, 10/01/04............... 100,000
6,000,000 b Los Angeles County Metropolitan Transportation Authority Revenue, Union
Station-Gateway, Series A, FSA Insured, Weekly VRDN and Put, 4.75%, 07/01/25... 6,000,000
30,600,000 Los Angeles County TRAN, 4.50%, 07/01/96........................................ 30,702,656
Los Angeles County Transport Commission, Sales Tax Revenue,
$ 1,000,000 Series A, 7.50%, 07/01/96...................................................... $ 1,037,726
5,625,000 Series A, 7.60%, 07/01/96...................................................... 5,844,943
b Los Angeles CRDA, COP,
1,000,000 Baldwin Hill Park, Weekly VRDN and Put, 4.85%, 12/01/14........................ 1,000,000
400,000 Broading Spring Center Program, Weekly VRDN and Put, 4.90%, 07/01/12........... 400,000
b Los Angeles MFHR,
3,400,000 Casden Project, Series K, Weekly VRDN and Put, 4.40%, 07/01/10................. 3,400,000
4,200,000 Lucas Studios Project, Series D, Weekly VRDN and Put, 5.15%, 12/01/21.......... 4,200,000
1,100,000 Masselin Manor, Weekly VRDN and Put, 4.80%, 07/01/15........................... 1,100,000
2,500,000 b Moorpark MFR, Refunding, Le Club Apartments Project, Weekly VRDN and Put,
4.80%, 11/01/15................................................................ 2,500,000
800,000 b Oakland Health Facilities Revenue, Children's Medical Hospital, Weekly VRDN
and Put, 4.95%, 07/01/08....................................................... 800,000
b Ontario MFR,
1,900,000 Park Center Partners Project, Series A, Weekly VRDN and Put, 4.867%, 08/01/07.. 1,900,000
6,700,000 Refunding, Rental Housing, Series A, Weekly VRDN and Put, 5.27%, 03/01/18...... 6,700,000
1,830,000 Refunding, Rental Housing, Series B, Weekly VRDN and Put, 5.27%, 03/01/18...... 1,830,000
1,190,000 b Ontario RDA, MFHR, Daisy XX Association, Ltd. Project, Weekly VRDN and Put,
4.80%, 11/01/04................................................................ 1,190,000
b Orange County Apartment Development Revenue,
1,600,000 Issue I, Park Ridge, Weekly VRDN and Put, 5.00%, 11/01/08...................... 1,600,000
100,000 Jessy L. Frost Project, Issue B, Weekly VRDN and Put, 5.40%, 03/01/09.......... 100,000
9,250,000 Refunding, The Lakes Projects, Series A, Weekly VRDN and Put, 5.30%, 12/01/06.. 9,250,000
3,000,000 Vista Verde Apartments, Weekly VRDN and Put, 5.45%, 08/01/18................... 3,000,000
390,000 b Oxnard RDA, COP, Channel Islands Business Center, Weekly VRDN and Put,
5.298%, 07/01/05............................................................... 390,000
b Palm Springs CRDA, COP,
1,100,000 Hotel No. 2, Weekly VRDN and Put, 4.80%, 12/01/14.............................. 1,100,000
900,000 Hotel No. 3, Weekly VRDN and Put, 4.80%, 12/01/14.............................. 900,000
3,715,000 Palomar, Pomerado Hospital District Revenue, Refunding, MBIA Insured,
9.25%, 05/01/96................................................................ 3,894,572
1,500,000 b Pico Rivera RDA, COP, Crossroad Plaza Project, Weekly VRDN and Put,
5.20%, 12/01/10................................................................ 1,500,000
3,550,000 b Redlands MFHR, Refunding, Parkview Terrace, Series A, Weekly VRDN and Put,
4.80%, 02/01/16................................................................ 3,550,000
b Riverside County IDA, IDR,
1,500,000 Calavo Growers, Weekly VRDN and Put, 5.10%, 09/01/05........................... 1,500,000
1,050,000 Spaulding Project, Issue B, Weekly VRDN and Put, 5.05%, 07/05/19............... 1,050,000
9,150,000 b Roseville Finance Authority Hospital, Lease Revenue, Series A, Roseville Hospital,
Weekly VRDN and Put, 4.90%, 10/01/14........................................... 9,150,000
$ 8,900,000 b Sacramento County COP, Administration Center and Court House Project,
Weekly VRDN and Put, 4.75%, 06/01/20........................................... $ 8,900,000
5,000,000 b Sacramento County MFR, Various Housing Projects, Smoketree, Series A,
Weekly VRDN and Put, 5.00%, 04/15/10........................................... 5,000,000
3,300,000 Sacramento MUD, Electric Revenue, Series Q, 7.50%, 05/01/96..................... 3,405,464
8,000,000 Sacramento MUD, TECP, 3.65%, 01/16/96........................................... 8,000,000
19,267,000 Sacramento Utilities, TECP, 3.30%, 03/14/96..................................... 19,267,000
2,000,000 b Salinas City Apartment Development Revenue, Brentwood Gardens, Series 1985-A,
Weekly VRDN and Put, 4.80%, 03/01/05........................................... 2,000,000
b San Bernardino,
2,150,000 Western Properties Project I, Weekly VRDN and Put, 4.55%, 02/01/05............. 2,150,000
1,000,000 Western Properties Project II, Weekly VRDN and Put, 4.55%, 05/01/05............ 1,000,000
900,000 Western Properties Project III, Weekly VRDN and Put, 4.55%, 08/01/05........... 900,000
1,600,000 Western Properties Project IV, Weekly VRDN and Put, 4.55%, 08/01/05............ 1,600,000
2,550,000 Western Properties Project V, Weekly VRDN and Put, 4.55%, 08/01/05............. 2,550,000
2,300,000 Woodview Apartments Project, Series I, Weekly VRDN and Put, 5.00%, 04/01/07.... 2,300,000
20,000,000 San Bernardino TRAN, 4.25%, 07/05/96............................................ 20,054,334
5,500,000 San Diego County Water Authority, TECP, 3.65%, 02/09/96......................... 5,500,000
San Diego IDA,
4,000,000 San Diego Gas and Electric TECP, 3.70%, 01/08/96............................... 4,000,000
2,000,000 TECP, 3.30%, 03/01/96.......................................................... 2,000,000
890,000 b San Diego MFHR, Country Hills Facility, Series A, FNMA Secured, Weekly VRDN
and Put, 5.00%, 08/15/13....................................................... 890,000
2,500,000 b San Diego MFMR, California Housing Authority, La Cima Apartments, Series K,
Weekly VRDN and Put, 4.80%, 12/01/08........................................... 2,500,000
2,900,000 b San Diego MFMR, Refunding, University Town Center Apartments, Weekly VRDN
and Put, 4.80%, 10/01/15....................................................... 2,900,000
900,000 b San Dimas RDA, Commercial Development Revenue, San Dimas Commercial Center,
Monthly VRDN and Put, 3.60%, 12/01/13.......................................... 900,000
4,600,000 b San Francisco City and County MFHR, Winterland Project, Series C, Weekly VRDN
and Put, 5.30%, 06/01/06....................................................... 4,600,000
2,565,000 b San Francisco City and County RDA, MFR, Rincon Center Project No. 8, Weekly
VRDN and Put, 5.30%, 12/01/06.................................................. 2,565,000
b San Jose MFMR,
600,000 Fairway Glen, Series A, FGIC Insured, Weekly VRDN and Put, 5.00%, 11/01/07..... 600,000
600,000 Foxchase, Series B, FGIC Insured, Weekly VRDN and Put, 5.00%, 11/01/07......... 600,000
1,000,000 Somerset Park Apartment Project, Weekly VRDN and Put, 4.75%, 11/01/17.......... 1,000,000
820,000 b San Mateo County COP, Capital Projects, Series B, Weekly VRDN and Put,
4.75%, 07/01/98................................................................ 820,000
2,950,000 b San Mateo County Housing Authority, MFHR, Pacific Oaks Apartment Project,
Weekly VRDN and Put, 5.35%, 07/01/17........................................... 2,950,000
$ 1,000,000 b Santa Clara County, MFHR, Grove Garden Apartments, Series A, Weekly VRDN
and Put, 5.30%, 03/01/17....................................................... $ 1,000,000
500,000 Santa Clara Valley Water District Revenue, Refunding, 5.75%, 06/01/96........... 504,097
500,000 b South San Francisco MFR, Magnolia Plaza Apartments, Series A, Weekly VRDN
and Put, 5.35%, 05/01/17....................................................... 500,000
34,200,000 b Southern California Public Power Authority Revenue, Refunding, Transmission Project,
AMBAC Insured, Weekly VRDN and Put, 4.75%, 07/01/19............................ 34,200,000
9,300,000 b Suisun City MFMR, Housing Authority, Village Green Apartments, Series A,
Weekly VRDN and Put, 5.00%, 06/15/18........................................... 9,300,000
3,000,000 West Basin Municipal Water, TECP, 3.70%, 01/09/96............................... 3,000,000
5,000,000 West Basin Municipal Water, TECP, 3.35%, 01/16/96............................... 5,000,000
-------------
Total Investments (Cost $613,281,496)99.9%...................................... 613,281,496
Other Assets and Liabilities, Net.1%............................................ 553,900
-------------
Net Assets100.0%................................................................ $613,835,396
=============
At December 31, 1995, there was no unrealized appreciation or depreciation for
financial statement or income tax purposes.
</TABLE>
PORTFOLIO ABBREVIATIONS:
ABAG - The Association of Bay Area Governments
ACES - Adjustable Convertible Exempt Securities
AMBAC - American Municipal Bond Assurance Corp.
COP - Certificate of Participation
CRDA - Community Redevelopment Agency
FGIC - Financial Guaranty Insurance Co.
FNMA - Federal National Mortgage Association
FSA - Financial Security Assistance
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
bVariable rate demand notes (VRDN's) are tax-exempt obligations which contain a
floating or variable interest rate adjustment formula and 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).
The accompanying notes are an integral part of these financial statements.
<TABLE>
<CAPTION>
FRANKLIN CALIFORNIA TAX-FREE TRUST
Financial Statements
Statements of Assets and Liabilities
December 31, 1995 (unaudited)
Franklin Franklin California Franklin
California Intermediate-Term California
Insured Tax-Free Tax-Free Tax-Exempt
Income Fund Income Fund Money Fund
----------- ------------ ---------
Assets:
Investments in securities:
<S> <C> <C> <C>
At identified cost........................................... $1,453,909,048 $93,712,150 $613,281,496
=========== ============ =========
At value..................................................... 1,565,764,641 96,393,647 613,281,496
Cash........................................................ 476,644 149,692 --
Receivables:
Interest..................................................... 28,074,160 1,526,974 4,966,880
Investment securities sold................................... 20,000 5,000 --
Capital shares sold.......................................... 2,876,219 43,592 --
----------- ------------ ---------
Total assets................................................. 1,597,211,664 98,118,905 618,248,376
----------- ------------ ---------
Liabilities:
Payables:
Investment securities purchased on a when-issued basis (Note 1) 5,227,545 -- --
Distributions payable to shareholders........................ 1,949,094 108,059 34,185
Capital shares repurchased................................... 5,819,649 52,143 4,022,231
Management fees.............................................. 616,337 17,522 258,504
Distribution fees............................................ 199,277 13,618 --
Shareholder servicing costs.................................. 8,503 340 44,583
Accrued expenses and other liabilities...................... 90,668 29,129 53,477
----------- ------------ ---------
Total liabilities............................................ 13,911,073 220,811 4,412,980
----------- ------------ ---------
Net assets, at value......................................... $1,583,300,591 $97,898,094 $613,835,396
=========== ============ =========
Net assets consist of:
Undistributed net investment income......................... $ 1,662,235 $ 189,989 $--
Unrealized appreciation on investments...................... 111,855,593 2,681,497 --
Accumulated net realized loss............................... (7,273,323) (789,652) --
Class I capital shares...................................... 1,466,642,944 95,816,260 613,835,396
Class II capital shares..................................... 10,413,142 -- --
----------- ------------ ---------
Net assets, at value......................................... $1,583,300,591 $97,898,094 $613,835,396
=========== ============ =========
Class I shares:
Net assets, at value........................................ $1,572,618,315 $97,898,094 $613,835,396
=========== ============ =========
Shares outstanding.......................................... 126,665,260 9,013,757 613,835,396
=========== ============ =========
Net asset value per share................................... $12.42* $10.86* $1.00
=========== ============ =========
Class II shares:
Net assets, at value........................................ $ 10,682,276 -- --
=========== ============ =========
Shares outstanding.......................................... 856,475 -- --
=========== ============ =========
Net asset value per share................................... $12.47* -- --
=========== ============ =========
*Redemption price per share is equal to net asset value less any applicable
contingent deferred sales charge.
+Distributions were decreased by net realized loss from security transactions of $14,563.
The accompanying notes are an integral part of these financial statements.
FRANKLIN CALIFORNIA TAX-FREE TRUST
Financial Statements (cont.)
Statements of Operations
for the six months ended December 31, 1995 (unaudited)
Franklin Franklin California Franklin
California Intermediate-Term California
Insured Tax-Free Tax-Free Tax-Exempt
Income Fund Income Fund Money Fund
---------- ----------- ---------
Investment income:
<S> <C> <C> <C>
Interest (Note 1).............................................. $46,633,510 $2,595,847 $11,404,905
---------- ----------- ---------
Expenses:
Management fees (Note 5)....................................... 3,570,491 299,814 1,556,402
Distribution fees Class I (Note 5)............................. 588,535 41,758 --
Distribution fees Class II (Note 5)............................ 17,629 -- --
Shareholder servicing costs (Note 5)........................... 107,556 9,048 234,126
Reports to shareholders........................................ 88,126 9,977 134,358
Custodian fees................................................. 56,258 4,737 28,592
Trustees' fees and expenses.................................... 30,727 2,122 15,514
Professional fees.............................................. 16,410 2,526 11,584
Registration and filing fees................................... 13,531 6,470 10,307
Insurance...................................................... 2,783 -- --
Other.......................................................... 45,367 20,107 12,025
Expenses waived by Manager (Note 5)............................ -- (182,756) --
---------- ----------- ---------
Total expenses.................................................. 4,537,413 213,803 2,002,908
---------- ----------- ---------
Net investment income........................................... 42,096,097 2,382,044 9,401,997
---------- ----------- ---------
Realized and unrealized gain on investments:
Net realized gain.............................................. 1,449,051 7,639 --
Net unrealized appreciation.................................... 56,137,193 4,238,716 --
---------- ----------- ---------
Net realized and unrealized gain on investments................. 57,586,244 4,246,355 --
---------- ----------- ---------
Net increase in net assets resulting from operations............ $99,682,341 $6,628,399 $ 9,401,997
========== =========== =========
The accompanying notes are an integral part of these financial statements.
</TABLE>
FRANKLIN CALIFORNIA TAX-FREE TRUST
<TABLE>
<CAPTION>
Financial Statements (cont.)
Statements of Changes in Net Assets
for the six months ended December 31, 1995 (unaudited)
and the year ended June 30, 1995
Franklin California InsuredFranklin California Intermediate- Franklin California
Tax-Free Income Fund Term Tax-Free Income Fund Tax-Exempt Money Fund
------------------------ ------------------- -----------------------
Six months Year Six months Year Six months Year
Ended 12/31/95 Ended 06/30/95 Ended 12/31/95Ended 06/30/95Ended 12/31/95 Ended 06/30/95
----------- ----------- --------- --------- ---------- -----------
Increase (decrease)
in net assets:
Operations:
Net investment
<S> <C> <C> <C> <C> <C> <C>
income............... $ 42,096,097 $ 82,829,714 $ 2,382,044 $ 5,021,562 $ 9,401,997 $ 20,297,656
Net realized gain
(loss) from
security
transactions......... 1,449,051 5,592,380 7,639 (465,495) -- (14,563)
Net unrealized
appreciation on
investments.......... 56,137,193 18,768,345 4,238,716 1,696,820 -- --
----------- ----------- --------- --------- ---------- -----------
Net increase in
net assets
resulting from
operations........... 99,682,341 107,190,439 6,628,399 6,252,887 9,401,997 20,283,093
Distributions to
shareholders from
undistributed net
investment income:
Class I............... (41,465,037) (82,377,546) (2,327,610) (4,925,765) (9,401,997) (20,283,093)+
Class II.............. (129,360) (1,771) -- -- -- ---
Increase (decrease)
in net assets from
capital share trans-
actions (Note 3)..... 56,625,793 (7,045,433) 4,812,545 (6,557,744) (28,321,938) (111,964,093)
----------- ----------- --------- --------- ---------- -----------
Net increase
(decrease) in
net assets........... 114,713,737 17,765,689 9,113,334 (5,230,622) (28,321,938) (111,964,093)
Net assets:
Beginning of period... 1,468,586,854 1,450,821,165 88,784,760 94,015,382 642,157,334 754,121,427
----------- ----------- --------- --------- ---------- -----------
End of period......... $1,583,300,591 $1,468,586,854 $97,898,094 $88,784,760 $613,835,896 $642,157,334
=========== =========== ========= ========= ========== ===========
Undistributed net
investment income
included in net assets:
Beginning of period... $ 1,160,535 $ 710,138 $ 135,555 $ 39,758 $-- $--
=========== =========== ========= ========= ========== ===========
End of period......... $ 1,662,235 $ 1,160,535 $ 189,989 $ 135,555 $-- $--
=========== =========== ========= ========= ========== ===========
+Distributions were decreased by net realized loss from security transactions of
$14,563.
The accompanying notes are an integral part of these financial statements.
</TABLE>
FRANKLIN CALIFORNIA TAX-FREE TRUST
Notes to Financial Statements (unaudited)
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 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-Term Fund) and Franklin
California Tax-Exempt Money Fund (the Money Fund). Each of the Funds issues a
separate series of the Trust's shares maintains a totally separate and distinct
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 than Class II. Each class
of shares may be subject to a contingent deferred sales charge and 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 Valuation:
Tax-free bonds generally trade in the over-the-counter market rather than on a
national securities exchange. In the absence of a sale or reported bid and asked
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 (the Board). Securities for which
market quotations are not available are valued in accordance with procedures
established by the Board.
The 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
maturity 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
asked 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 redemption at $1.00.
b. Municipal Bonds and Notes with "Puts":
The Funds have 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 to 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 Funds have 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 Fund's weighted average to 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 Funds intend 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 shareholders which will be sufficient to relieve the
Funds from income and excise taxes. 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.
f. Investment Income, Expenses and Distributions:
For the Insured and the Intermediate-Term Funds, distributions to shareholders
are recorded on the ex-dividend date. Interest income and estimated expenses are
accrued daily. Bond discount and premium 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 following the 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, and are payable to shareholders of record at the beginning
of the 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 Insured Fund, 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.
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 collateral guaranteed by an agency of the U.S. Government. The
providers of secondary market and new issue insurance are rated "AAA" by
Standard and 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 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 Fund]
will reduce the current income of the portfolio by the amount thereof. Premiums
paid by the 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 Fund. Premiums on a New Issue Insurance policy (effective so
long as the security so insured is outstanding and the issuer 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 Fund and are not considered an
expense to the 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.
1. SIGNIFICANT ACCOUNTING POLICIES (cont.)
i. Securities Purchased on a When-Issued Basis or Delayed Delivery Basis:
The Funds 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 Funds will
generally purchase these securities with the intention of holding such
securities, they may sell the securities before the settlement date. These
securities are identified on the accompanying Statements of Investments in
Securities and Net Assets. The Funds have 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:
Franklin California Franklin California
Insured Tax-Free Intermediate-Term
Income Fund Tax-Free Income Fund
----------- --------------
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
=========== ==============
For tax purposes, the aggregate cost of securities and unrealized appreciation
(depreciation) of the Funds are the same as for financial statement purposes at
December 31, 1995.
3. TRUST SHARES
At December 31, 1995, there was an unlimited number of no par value shares of
beneficial interest authorized. Transactions in the Funds' shares were as
follows:
<TABLE>
<CAPTION>
Class I Shares:
Franklin California Insured Tax-Free Income Fund
Six Months Ended Year Ended
December 31, 1995 June 30, 1995
--------------------- ----------------------
Shares Amount Shares Amount
--------- ----------- --------- -----------
<S> <C> <C> <C> <C>
Shares sold...................................... 8,051,591 $97,476,235 10,633,997 $125,181,289
Shares issued in reinvestment of distributions... 1,383,882 16,759,921 2,826,303 33,085,583
Shares redeemed.................................. (5,830,485) (70,480,769) (14,271,062) (165,740,287)
Changes from exercise of exchange privilege:
Shares sold..................................... 4,381,797 53,071,341 11,532,096 133,939,319
Shares redeemed................................. (4,125,722) (50,101,206) (11,490,276) (134,024,208)
--------- ----------- --------- -----------
Net increase (decrease).......................... 3,861,063 $46,725,522 (768,942) $ (7,558,304)
========= =========== ========= ===========
3. TRUST SHARES (cont.)
Class II Shares:
Franklin California Insured Tax-Free Income Fund
Six Months Ended Year Ended
December 31, 1995 June 30, 1995
--------------------- ----------------------
Shares Amount Shares Amount
--------- ----------- --------- -----------
<S> <C> <C> <C> <C>
Shares sold...................................... 809,022 $9,836,844 42,176 $511,865
Shares issued in reinvestment of distributions... 6,504 79,656 84 1,006
Shares redeemed.................................. (1,311) (16,229) -- --
--------- ----------- --------- -----------
Net increase (decrease).......................... 814,215 $9,900,271 42,260 $512,871
========= =========== ========= ===========
Franklin California Intermediate-Term Tax-Free Income Fund
Six Months Ended Year Ended
December 31, 1995 June 30, 1995
--------------------- ----------------------
Shares Amount Shares Amount
--------- ----------- --------- -----------
<S> <C> <C> <C> <C>
Shares sold...................................... 917,766 $9,756,383 1,204,356 $12,309,531
Shares issued in reinvestment of distributions... 133,352 1,419,788 287,710 2,922,503
Shares redeemed.................................. (656,085) (7,015,112) (2,148,804) (21,756,389)
Changes from exercise of exchange privilege:
Shares sold..................................... 301,653 3,203,334 2,325,201 23,281,750
Shares redeemed................................. (239,447) (2,551,848) (2,329,548) (23,315,139)
--------- ----------- --------- -----------
Net increase (decrease).......................... 457,239 $4,812,545 (661,085) $ (6,557,744)
========= =========== ========= ===========
Franklin California
Tax-Exempt Money Fund
Six Months Ended Year Ended
December 31, 1995 June 30, 1995
------------- -------------
Amount Amount
------------- -------------
Transactions in capital stock at $1.00 per share were as follows:
<S> <C> <C>
Shares sold............................................................. $293,613,816 $602,511,619
Shares issued in reinvestment of distributions.......................... 9,403,442 20,299,685
Shares redeemed......................................................... (306,666,228) (763,427,966)
Changes from exercise of exchange privilege:
Shares sold............................................................ 101,633,801 450,373,225
Shares redeemed........................................................ (126,306,769) (421,720,656)
------------- -------------
Net increase............................................................. $(28,321,938) $(111,964,093)
============= =============
4. PURCHASES AND SALES OF SECURITIES
Purchases and sales of securities (excluding purchases and sales of short-term
securities) for the six months ended December 31, 1995, were as follows:
Franklin California Franklin California Franklin California
Insured Tax-Free Intermediate-Term Tax-Exempt
Income Fund Tax-Free Income Fund Money Fund
----------- ------------- -----------
<S> <C> <C> <C>
Purchases .......................................... $86,907,784 $8,790,977 --
=========== ============= ===========
Sales .............................................. $32,132,076 $4,810,291 --
=========== ============= ===========
</TABLE>
5. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
Under the terms of a management agreement, Franklin Advisers, Inc. (Advisers),
provides investment advice, administrative services, office space and facilities
to each Fund. Advisers receives fees computed monthly based on the net assets of
the Insured Fund and the Intermediate-Term Fund, and receives fees computed
daily based on the net assets of the Money Fund as follows:
Annualized Fee Rate Average Net Assets
- ------------- ------------------------------------
.625 of 1% First $100 million
.500 of 1% Over $100 million, up to and including $250 million
.450 of 1% In excess of $250 million
The terms of the management agreement provide that aggregate annual expenses of
each Fund 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 each Fund's shares are registered. For the six months ended December
31, 1995, the Funds' expenses did not exceed these limitations, however,
Advisers agreed in advance to waive $182,756 of the management fees for the
Intermediate-Term Fund.
In its capacity as underwriter for the shares of the Insured Fund and the
Intermediate-Term Fund, Franklin/Templeton Distributors, Inc., (Distributors)
received commissions on sales of the Funds' shares. Commissions are deducted
from the gross proceeds received from the sale of the Funds' shares, and as such
are not expenses of the Funds. Distributors 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 the Distributors and the amounts paid to other dealers
for the six months ended December 31, 1995 were as follows:
Franklin California Franklin California
Insured Tax-Free Intermediate-Term
Income Fund Tax-Free Income Fund
---------------- --------------
Class I Class II
-------- -------
Total commissions received .$2,678,830 $ 98,458 $ 97,565
======== ======= ==============
Paid to other dealers .....$2,616,167 $192,756 $113,682
======== ======= ==============
5. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES (cont.)
Distributors also received contingent deferred sales charges relating to
transactions in the Funds as follows:
Franklin California Franklin California
Insured Tax-Free Intermediate-Term
Income Fund Tax-Free Income Fund
----------- --------------
Class I......... $17,252 $2,296
----------- --------------
Class II........ $ 134 --
=========== ==============
5. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES (cont.)
Under the terms of a shareholder services agreement with Franklin/Templeton
Investor Services, Inc. (Investor Services) the Trust pays cost on a per
shareholder account basis. Shareholder servicing cost incurred by the Insured
Fund, the Intermediate-Term Fund and the Money Fund for the six months ended
December 31, 1995 were $107,556, $9,048 and $234,126, respectively, of which
$78,669, $9,048 and $187,156, respectively, were paid to Investor Services.
Under the terms of a Distribution Plan pursuant to Rule 12b-1 of the Investment
Company Act of 1940, the Intermediate-Term Fund reimburses Distributors, in an
amount up to 0.10%, per annum of the fund's average daily net assets for costs
incurred in the promotion, offering and marketing of the Fund's shares. The plan
does not permit nor require payment of excess costs after plan termination. Fees
incurred by the Intermediate-Term Fund under the agreement aggregated $41,758
for the six months ended December 31, 1995.
Under the terms of a Distribution Plan pursuant to 12b-1 of the Investment
Company Act of 1940, which was effective May 1, 1994 for Class I shares and May
1, 1995 for Class II shares, the Insured Fund will reimburse Distributors in an
amount up to a maximum of 0.10% per annum for Class I and 0.65% per annum for
Class II of the average daily net assets of such class, for costs incurred in
the promotion, offering, and marketing of Class I and Class II shares. The plans
do not permit nor require payments of excess costs after plan termination. Fees
incurred under the plans aggregated $606,194 for the six months ended December
31, 1995.
On December 8, 1994, Franklin Resources, Inc., (Resources) purchased $6.6
million in face value of unsecured Orange County Tax and Revenue Anticipation
Note, 4.5%, 07/19/95 from the Money Fund at amortized cost of $6,623,125 plus
accrued interest on $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
Distributors, Advisers, and Investor Services, all wholly-owned subsidiaries of
Resources.
6. CREDIT RISK
Although each of the Funds has a diversified investment portfolio, all of its
investments are in the securities of issuers in the state of California and
Puerto Rico. Such concentration may subject the Funds more significantly to
economic changes occurring within those areas.
<TABLE>
<CAPTION>
7. FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest outstanding throughout the
period by Fund are as follows:
Per Share Operating Performance Ratios/Supplemental Data
- ---------------------------------------------------------------------------------------------------------------------------
Ratio of Ratio of Net
Net Asset Net Realized Distributions Net Asset Net Assets Expenses Investment
Period 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 Period Net Assets to Average Turnover
June 30 of Period Income on Securities Operations Income of Period Return+ (in 000's) (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 $.740 $ .094 $ .834 $(.744) $11.26 7.45% $ 471,997 .57% 6.48% 4.20%
1992 11.26 .700 .457 1.157 (.747) 11.67 10.32 967,745 .55 6.16 3.50
1993 11.67 .690 .636 1.326 (.696) 12.30 11.47 1,363,623 .53 5.82 8.28
1994 12.30 .680 (.562) .118 (.678) 11.74 0.67 1,450,821 .54 5.53 6.98
1995 11.74 .680 .204 .884 (.674) 11.95 7.80 1,468,080 .59 5.77 11.85
1995+++ 11.95 .330 .472 .802 (.332) 12.42 6.81 1,572,618 .59* 5.51* 2.15
Class II Shares:
1995*** 11.88 .110 .103 .213 (.103) 11.99 1.79 507 1.17* 5.03* 11.85
1995+++ 11.99 .400 .325 .725 (.245) 12.47 6.56 10,682 1.54* 9.67* 2.15
Franklin California Intermediate-Term Tax-Free Income Fund:
1993** 10.00 .290 .550 .840 (.290) 10.55 10.95* 42,831 .09* 4.73* .08
1994 10.55 .540 (.360) .180 (.530) 10.20 1.65 94,015 .25 5.11 14.95
1995 10.20 .540 .170 .710 (.530) 10.38 7.19 88,785 .33 5.34 10.90
1995+++ 10.38 .270 .474 .744 (.264) 10.86 7.24 97,898 .45* 5.02* 5.41
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 --
1995+++ 1.00 .015 -- .015 (.015) 1.00 1.50 613,836 .64* 2.98* --
*Annualized
**For the period September 21, 1992 (effective date) 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 front-end sales charges or the contingent deferred sales charges. Prior to May 1, 1994 the total
return for Class I shares assumes reinvestment of dividends and capital gains, if any, at net asset value for the
Intermediate-Term Fund and the Money Fund, and assumes reinvestment of dividends at the offering price and capital gains,
if any, at net asset value for the Insured Fund. Effective May 1, 1994, with the implementation of the Rule 12b-1
distribution plan, as discussed in Note 5, the Insured Fund's existing sales charges on reinvested dividends has been
eliminated.
++During the periods indicated, Advisers 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 expenses to average net assets
would have been .95% (annualized), .80%, .83%, and .84%, respectively.
+++For the six months ended December 31, 1995.
</TABLE>
Franklin California Tax-Free Trust
APPENDIX
DESCRIPTION OF GRAPHIC MATERIAL OMITTED FROM EDGAR FILING
(PERSUANT TO ITEM 304 (a) OF REGULATION S-T)
GRAPHIC MATERIAL (1)
This bar chart shows the comparison between the Franklin California Insured
Tax-Free Income Fund's distribution rate of 5.18% and the equivalent taxable
rate of 9.63%, for Class I shares.
GRAPHIC MATERIAL (2)
This bar chart shows the comparison between the Franklin California Insured
Tax-Free Income Fund's distribution rate of 4.76% and the equivalent taxable
rate of 8.85%, for Class II shares.
GRAPHIC MATERIAL (3)
This chart shows in pie chart format the Franklin California Intermediate-Term
Tax-Free Income Fund's quality breakdown based on total net assets.
<TABLE>
<CAPTION>
Quality Breakdown on 12/31/95
<S> <C>
AAA 25.4%
AA 4.0%
A 34.9%
BBB 35.6%
Below Investment Grade 0.1%
</TABLE>
GRAPHIC MATERIAL (4)
This bar chart shows the comparison between the Franklin California Intermediate
Tax-Free Income Fund's distribution rate of 4.75% and the equivalent taxable
rate of 8.83%.
GRAPHIC MATERIAL (5)
This bar chart shows the comparison between the fund's seven-day annualized
yield of 3.72% and the seven-day equivalent taxable yield of 6.92%.
