MESSAGE FROM THE CHAIRMAN
================================================================================
Table of Contents Page
Message from the Chairman........ 1
Fund Reports
Franklin California Insured
Tax-Free Income Fund............ 3
Franklin California
Intermediate-Term Tax-Free
Income Fund..................... 11
Franklin California
Tax-Exempt Money Fund........... 16
Statement of Investments......... 18
Financial Statements............. 54
Notes to Financial Statements.... 57
Report of Independent Auditors... 64
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).
August 15, 1996
Dear Shareholder:
It's a pleasure to bring you the Franklin California Tax-Free Trust's annual
report for the period ended June 30, 1996.
During the first half of the Trust's fiscal year, market conditions were
distinctly different from those of the last half. Interest rates gradually
declined during the last half of 1995 as a result of slower economic growth
(annualized at a rate of 0.5%), which allowed the Federal Reserve Board to keep
interest rates at low levels. The yield of the 30-year U.S. Treasury bond, which
stood at 6.63% on June 30, 1995, declined to 5.96% on December 31, 1995.*
In mid-February 1996, however, interest rates began to rise in response to
evidence of renewed economic strength. Uncertainty and confusion followed a much
stronger-than-expected employment report released in early March. While
well-known economists disagreed on the market's direction, investors reacted to
mixed messages. Nervous investors, fearing inflation might accelerate, caused a
3% decline in bond prices and a short-lived 120-point drop in the Dow Jones
Industrial Average(R) on March 8, 1996. Actually, later reports showed that the
economy had grown slowly in the first quarter of 1996, at an annualized rate of
approximately 2.2%, with inflation coming in at the 2% level. Economic growth
accelerated slightly in the second quarter of 1996, with Gross Domestic Product
(GDP) rising to 4.2% -- which is above the Fed's comfort level.
*Source: Micropal.
We expect that the funds in the Franklin California Tax-Free Trust should
perform well if the U.S. economy maintains its relatively slow growth pattern.
Although the economy appears stable at the moment, market uncertainties persist.
This uncertainty prompts us to continue to encourage individual investors to
maintain a long-term perspective. It is prudent to periodically consult with
your investment representative to make sure your investments match these goals.
This long-term orientation will help minimize undue concern caused by short-term
market volatility.
As a Franklin fund shareholder, you receive the benefits of diversification,
professional management, and dedicated service. Should you have any questions
concerning the funds in the Franklin California Tax-Free Trust, we would
certainly welcome the opportunity to answer them.
We appreciate your support and look forward to serving your investment needs in
the years ahead.
Sincerely,
Charles B. Johnson
Chairman
Franklin California Tax-Free Trust
FRANKLIN CALIFORNIA INSURED TAX-FREE INCOME FUND
Your Fund's 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.*
Bond markets rallied through most of 1995, but declined somewhat in February and
March 1996 amid signs of economic growth. The stock market, however, continued
to attract significant amounts of money. Though this was a disappointment for
bonds and bond mutual funds, it helped keep demand for fixed-income securities
in line with supply. At times bond yields fluctuated dramatically, often caused
by investors who over-reacted to anticipated actions by the Federal Reserve
Board. As soon as the market realized that these fluctuations resulted from
imagined concerns rather than real, the market settled back to a level that was
a fair value to buyers and sellers alike.
Over the past year, the market for California municipal bonds has been on a bit
of a bumpy road. California's market tracked the movement of the national bond
market, which was noticeably impacted by the Fed's actions, while absorbing the
after-shocks of Orange County's bankruptcy proceedings.
Nearly half of the California bonds that came to market during the past twelve
months were insured by one of the four major municipal insurance companies. We
feel that increased competition within the insurance industry, rather than
concerns created by Orange County's default, has played a significant role in
the increased supply of insured bonds available for purchase. Because of the
availability of insured, high-quality bonds, we were able to concentrate more on
managing the portfolio than searching for suitable investments.
*For investors subject to the federal alternative minimum tax, a small portion
of this income may be subject to such tax. Distributions of capital gains and of
ordinary income from accrued market discount, if any, are generally taxable.
Throughout the reporting period, we reduced the amount of pre-refunded bonds
that were issued during the low interest-rate period of 1992 and 1993. As
indicated by the table to the right, pre-refunded bonds represented only 13.9%
of the portfolio's total long-term investments on June 30, 1996, compared to 23%
one year earlier. We used the proceeds of our pre-refund sales to purchase bonds
with higher current yields than were available earlier in the year. This
pro-active move should help bolster the fund's income and support our efforts to
maintain the dividend paid to our shareholders.
As we've stated before, we're not in the business of predicting what the market
will do tomorrow -- that's an inexact science. It's especially difficult to
predict what would cause the market to break out of its current trading range.
The obvious force would be inflation or the possibility of a dramatic shift of
investment preference from the stock market to fixed-income securities.
Franklin California Insured
Tax-Free Income Fund
Portfolio Breakdown on 6/30/96
Based on Total Long-Term Investments
% of total
long-term
Sector investments
Utilities 18.9%
Certificates of Participation 16.5%
Tax Allocation Bonds 15.9%
Pre-Refunded 13.9%
Other Revenue 11.1%
Education 6.0%
Hospitals 5.6%
Transportation 2.6%
General Obligations 2.5%
Mello-Roos Bonds 2.3%
Housing 2.2%
Marks-Roos Bonds 0.9%
Sales Tax Revenue 0.9%
Industrial 0.4%
Special Assessment Bonds 0.3%
For a complete list of portfolio holdings, please see
page 18 of this report.
Performance Summary
Class I
(Class II Performance Summary begins on page 8.)
The Franklin California Insured Tax-Free Income Fund's Class I share price, as
measured by net asset value, increased 6 cents from $11.95 on June 30, 1995, to
$12.01 on June 30, 1996.
At the end of this reporting period, the distribution rate of Class I shares was
5.36%, based on an annualization of the current monthly dividend of 5.6 cents
($0.056) per share and the maximum offering price of $12.54 on June 30, 1996.
This tax-free rate is generally higher than the after-tax return on a comparable
taxable investment. For example, an investor in the maximum combined federal and
California state personal income tax bracket of 45.2% would need to earn 9.78%
from a taxable investment to match the fund's tax-free distribution rate.
The chart on page 6 illustrates that since 1986, the Franklin California Insured
Tax-Free Income Fund underperformed the unmanaged Lehman Brothers Municipal Bond
Index. Comparing a mutual fund with an unmanaged index, however, is never an
apples-to-apples comparison. Performance figures reported by a general market
index do not include various fees, sales charges, and operating expenses
included in the fund's performance figures. If the fund's costs had been applied
to the index, the index's performance would have been lower. Also, unlike
indices, mutual funds are never fully invested because they must have cash on
hand to redeem shares. Please remember that an index is simply a measure of
performance and cannot be invested in directly. Past performance is not
predictive of future results.
Franklin California Insured
Tax-Free Income Fund
Class I
Dividend Distributions 7/01/95 - 6/30/96+
Dividend
Month per Share
- -----------------------------------------------------
July 5.6 cents
August 5.6 cents
September 5.6 cents
October 5.6 cents
November 5.6 cents
December 5.6 cents
January 5.6 cents
February 5.6 cents
March 5.6 cents
April 5.6 cents
May 5.6 cents
June 5.6 cents
Total 67.2 cents
+Assumes shares were purchased and held for the entire accrual period. Since
dividends accrue daily, your actual distributions will vary depending on the day
you purchased your shares and any account activity during the month. Income
distributions and total return calculations include all accrued income earned by
the fund during the reporting period.
GRAPHIC MATERIAL 1 OMITTED - SEE APPENDIX AT END OF DOCUMENT
GRAPHIC MATERIAL 2 OMITTED - SEE APPENDIX AT END OF DOCUMENT
Franklin California Insured Tax-Free Income Fund
Class I
Periods ended 6/30/96
<TABLE>
<CAPTION>
Since
Inception
1-Year 5-Year 10-year (9/3/85)
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Cumulative Total Return1 6.18% 42.47% 101.98% 135.00%
Average Annual Total Return2 1.67% 6.41% 6.82% 7.78%
Distribution Rate3 5.36%
Taxable Equivalent Distribution Rate4 9.78%
30-Day Standardized Yield5 4.88%
Taxable Equivalent Yield4 8.91%
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
1. Cumulative total return measures the change in value of an investment over
the periods indicated and does not include the maximum 4.25% initial sales
charge. See Note below.
2. Average annual total return represents the average annual change in value of
an investment over the periods indicated and includes the maximum 4.25% initial
sales charge. See Note below.
3. Based on an annualization of the current 5.6 cent per share monthly dividend
and the maximum offering price of $12.54 on June 30, 1996.
4. Taxable equivalent distribution rate and yield assume the 1996 maximum
combined federal and California state personal income tax rate of 45.2%, based
on the federal income tax rate of 39.6%.
5. Yield, calculated as required by the SEC, is based on the earnings of the
fund's portfolio for the 30 days ended June 30, 1996.
Note: Prior to July 1, 1994, fund shares were offered at a lower initial sales
charge with dividends reinvested at the offering price. Thus, actual total
returns for purchasers of shares during that period would have been somewhat
different than noted above. Effective May 1, 1994, the fund eliminated the sales
charge on reinvested dividends and implemented a plan of distribution under Rule
12b-1, which affects subsequent performance. All total return calculations
assume reinvestment of dividends and capital gains at net asset value, and 12b-1
fees from the date of the plan's implementation. Your 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.
Class II
The Franklin California Insured Tax-Free Income Fund's Class II share price, as
measured by net asset value, increased 8 cents from $11.99 on June 30, 1995, to
$12.07 on June 30, 1996.
At the end of this reporting period, the distribution rate of Class II shares
was 4.93%, based on an annualization of the current monthly dividend of 5.01
cents ($0.0501) per share and the offering price of $12.19 on June 30, 1996.
This tax-free rate is generally higher than the after-tax return on a comparable
taxable investment. For example, an investor in the maximum combined federal and
California state personal income tax bracket of 45.2% would need to earn 9.00%
from a taxable investment to match the fund's tax-free distribution rate.
Franklin California Insured
Tax-Free Income Fund
Class II
Dividend Distributions 7/01/95 - 6/30/96+
Dividend
Month per Share
- --------------------------------------------------------------------------------
July 5.00 cents
August 5.00 cents
September 5.00 cents
October 5.00 cents
November 5.00 cents
December 5.00 cents
January 5.00 cents
February 5.00 cents
March 5.10 cents++
April 5.01 cents
May 5.01 cents
June 5.01 cents
Total 60.13 cents
+Assumes shares were purchased and held for the entire accrual period. Since
dividends accrue daily, your actual distributions will vary depending on the day
you purchased your shares and any account activity during the month. Income
distributions and total return calculations include all accrued income earned by
the fund during the reporting period.
++The Class II share dividend for March 1996 reflects the reconciliation of the
12b-1 differential between Class I and Class II shares.
The chart on page 10 illustrates that since its inception in 1995, the Franklin
California Insured Tax-Free Income Fund underperformed the unmanaged Lehman
Brothers Municipal Bond Index. Comparing a mutual fund with an unmanaged index,
however, is never an apples-to-apples comparison. Performance figures reported
by a general market index do not include various fees, sales charges, and
operating expenses included in the fund's performance figures. If the fund's
costs had been applied to the index, the index's performance would have been
lower. Also, unlike indices, mutual funds are never fully invested because they
must have cash on hand to redeem shares. Please remember that an index is simply
a measure of performance and cannot be invested in directly. Past performance is
not predictive of future results.
GRAPHIC MATERIAL 3 OMITTED - SEE APPENDIX AT END OF DOCUMENT
GRAPHIC MATERIAL 4 OMITTED - SEE APPENDIX AT END OF DOCUMENT
Franklin California Insured
Tax-Free Income Fund
Periods ended 6/30/96
Since
Inception
1-Year (5/1/95)
- --------------------------------------------------------
Cumulative
Total Return1 5.70% 7.50%
Average Annual
Total Return2 3.67% 4.62%
Distribution Rate3 4.93%
Taxable Equivalent
Distribution Rate4 9.00%
30-Day Standardized Yield5 4.50%
Taxable Equivalent Yield4 8.21%
- --------------------------------------------------------
1. Cumulative total return measures the change in value of an investment over
the period 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.
2. Average annual total return represents the average annual change in value of
an investment over the period indicated and includes the 1.0% initial sales
charge and 1.0% CDSC, applicable to shares redeemed within the first 18 months
of investment.
3. Based on an annualization of the 5.01 cent per share monthly dividend and the
offering price of $12.19 on June 30, 1996.
4. Taxable equivalent distribution rate and yield assume the 1996 maximum
combined federal and California state personal income tax rate of 45.2%, based
on the federal income tax rate 39.6%.
5. Yield, calculated as required by the SEC, is based on the earnings of the
fund's portfolio for the 30 days ended June 30, 1996.
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.
FRANKLIN CALIFORNIA
INTERMEDIATE-TERM TAX-FREE INCOME FUND
Your Fund's 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.*
Since the fund's semi-annual report in December 1995, the economy has gained
some momentum and intermediate-term bond yields, as measured by the five-year
U.S. Treasury note, rose from 5.38% on December 31, 1995, to 6.64% at the end of
the fund's fiscal year. As expected, when interest rates rose, the margin
between short- and long-term bond yields grew wider. In order to take advantage
of this widening margin, we sold bonds yielding 4.5% to 5.5% in the four- to
six-year maturity range and purchased bonds yielding 5.75% to 6.0% in the eight-
to eleven-year maturity range.
Though we purchased longer-term bonds during the reporting period, we also kept
a number of securities with a maturity of less than one year (yielding 1.0% to
3.5%). This enabled us to meet redemptions and transfers without liquidating our
longer-term bonds at a loss.
GRAPHIC MATERIAL 5 OMITTED - 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.
When interest rates declined in the first half of the fiscal year, we increased
the percentage of AAA-rated municipal bonds in the portfolio as the yield
difference between high- and low-quality bonds was very narrow. In essence, we
were trying to maintain strong yields while reducing our risk. This worked well,
and we maintained these positions through the remainder of the reporting period.
Our AAA-rated securities made up 25% of total long-term investments on June 30,
1996, up from 21% a year earlier.
We continue to maintain our conservative management approach by purchasing
"essential service" bonds. Unlike other general obligation bonds, essential
service bonds are backed by revenue from hospitals, utilities, and
transportation projects, and tend to generate a more reliable income stream. 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 6/30/96
Based on Total Long-Term Investments
% of Total
Long-Term
Sector Investments
- -----------------------------------------------------------
Certificates of Participation 24.4%
Tax Allocation Bonds 20.4%
Other Revenue 13.3%
Utilities 9.9%
Education 9.5%
Housing 6.2%
Special Assessment Bonds 4.6%
Hospitals 3.3%
Marks-Roos Bonds 2.9%
Special Tax Revenue Bonds 2.5%
Health Care 1.2%
Mello-Roos Bonds 1.1%
Transportation 0.3%
General Obligations 0.2%
Pre-Refunded 0.1%
Industrial 0.1%
For a complete list of portfolio holdings, please see
page 37 of this report.
Performance Summary
The Franklin California Intermediate-Term Tax-Free Income Fund's share price, as
measured by net asset value, increased 29 cents from $10.38 on June 30, 1995, to
$10.67 on June 30, 1996.
At the end of this reporting period, the fund's distribution rate was 4.84%,
based on an annualization of the current monthly dividend of 4.4 cents ($0.044)
per share and the maximum offering price of $10.92 on June 30, 1996. This
tax-free rate is generally higher than the after-tax return on a comparable
taxable investment. For example, an investor in the maximum combined federal and
California state personal income tax bracket of 45.2% would need to earn 8.83%
from a taxable investment to match the fund's tax-free distribution rate.
The chart on page 14 illustrates that since its inception in 1992, the Franklin
California Intermediate-Term Tax-Free Income Fund underperformed the unmanaged
Lehman Brothers 10-Year Municipal Bond Index. Comparing a mutual fund with an
unmanaged index, however, is never an apples-to-apples comparison.
Franklin California Intermediate-Term
Tax-Free Income Fund
Dividend Distributions (7/01/95 - 6/30/96)+
Dividend
Month per Share
- --------------------------------------------------------
July 4.4 cents
August 4.4 cents
September 4.4 cents
October 4.4 cents
November 4.4 cents
December 4.4 cents
January 4.4 cents
February 4.4 cents
March 4.4 cents
April 4.4 cents
May 4.4 cents
June 4.4 cents
Total 52.8 cents
+Assumes shares were purchased and held for the entire accrual period. Since
dividends accrue daily, your actual distributions will vary depending on the day
you purchased your shares and any account activity during the month. Income
distributions and total return calculations include all accrued income earned by
the fund during the reporting period.
GRAPHIC MATERIAL 6 OMITTED - SEE APPENDIX AT END OF DOCUMENT
Performance figures reported by a general market index do not include various
fees, sales charges, and operating expenses included in the fund's performance
figures. If the fund's costs had been applied to the index, the index's
performance would have been lower. Also, unlike indices, mutual funds are never
fully invested because they must have cash on hand to redeem shares. Please
remember that an index is simply a measure of performance and cannot be invested
in directly. Past performance is not predictive of future results.
GRAPHIC MATERIAL 7 OMITTED - SEE APPENDIX AT END OF DOCUMENT
Franklin California Intermediate-Term Tax-Free Income Fund
Periods ended 6/30/96
<TABLE>
<CAPTION>
Since
Inception
1-Year 3-Year (10/1/92)
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Cumulative Total Return1 7.96% 17.64% 27.43%
Average Annual Total Return2 5.52% 4.78% 5.99%
Distribution Rate3 4.84%
Taxable Equivalent Distribution Rate4 8.83%
30-Day Standardized Yield5 4.93%
Taxable Equivalent Yield4 9.00%
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
1. Cumulative total return measures the change in value of an investment over
the periods indicated and does not include the maximum 2.25% initial sales
charge. See Note below.
2. Average annual total return represents the average annual change in value of
an investment over the periods indicated and includes the maximum 2.25% initial
sales charge. See Note below.
3. Based on an annualization of the current 4.4 cent per share monthly dividend
and the maximum offering price of $10.92 on June 30, 1996.
4. Taxable equivalent distribution rate and yield assume the 1996 maximum
combined federal and California state personal income tax bracket 45.2%, based
on the federal income tax rate of 39.6%.
5. Yield, calculated as required by the SEC, is based on the earnings of the
fund's portfolio for the 30 days ended June 30, 1996.
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 agreed in advance to waive a portion of the management fees,
which reduces operating expenses and increases distribution rate, yield and
total return to shareholders. Without this waiver, the fund's distribution rate
would have been lower, and yield for the period would have been 4.77%. The fee
waiver may be discontinued at any time upon notice to the fund's Board of
Trustees.
FRANKLIN CALIFORNIA TAX-EXEMPT MONEY FUND
Your Fund's 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.*
During the one-year reporting period, short-term interest rates stayed within a
fairly narrow range, with the yield of the one-year Treasury bill fluctuating
between 5.33% and 5.70% from June 1995 to June 1996. Economists are now looking
at a strengthening economy. Gross Domestic Product (GDP), which grew at an
annualized rate of only 0.5% in the fourth quarter of 1995, has accelerated and
is estimated to grow between 3.5% and 4% in the second quarter of 1996.
We moved the portfolio to a neutral position during the reporting period. The
fund's average maturity on June 30, 1996, was 42 days, up slightly from 37 days
one year earlier. By keeping the maturity relatively short, we were able to
reinvest in securities offering higher rates, thereby increasing the fund's
yield.
On June 30, 1996, the fund's seven-day effective yield, which assumes the
compounding of daily dividends, was 2.69%, and the fund's seven-day annualized
yield was 2.66%. This tax-free rate is generally higher than the after-tax
return on a comparable taxable investment. For example, an investor in the
maximum combined federal and California state personal income tax bracket of
45.2% would need to earn 4.85% from a taxable investment to match the fund's
tax-free yield.
*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.
GRAPHIC MATERIAL 8 OMITTED - SEE APPENDIX AT END OF DOCUMENT
Liquidity and quality of investments drive our management approach. In keeping
with this, we purchased only the highest-quality securities available to money
market portfolios. We will continue to manage the fund with an emphasis on high
quality securities and liquidity, as we anticipate relatively slow economic
growth and subdued inflation.
Franklin California Tax-Exempt Money Fund
Periods ended 6/30/96
- ---------------------------------------------
Seven-day effective yield1 2.69%
Seven-day annualized yield 2.66%
Taxable equivalent yield2 4.85%
- ---------------------------------------------
1. The seven-day effective yield assumes the compounding of daily dividends.
2. Taxable equivalent yield assumes the 1996 maximum combined federal and
California state personal income tax bracket of 45.2%, based on the federal
income tax rate of 39.6%.
Annualized and effective yields are for the seven days ended June 30, 1996.
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 is not predictive of
future results.
FRANKLIN CALIFORNIA TAX-FREE TRUST
Statement of Investments in Securities and Net Assets, June 30, 1996
<TABLE>
<CAPTION>
Face Value
Amount Franklin California Insured Tax-Free Income Fund (Note 1)
- --------------------------------------------------------------------------------------------------------------------
Long Term Investments 98.5%
Bonds 98.1%
<S> <C> <C>
$ 1,000,000 Alameda COP, Police Building and Equipment Financing Project, MBIA Insured,
7.25%, 08/01/15 ............................................................. $ 1,082,870
2,000,000 Alameda County COP, Municipal Custody Receipts, Series 1, BIG Insured,
Pre-Refunded, 7.25%, 12/01/07 ............................................... 2,242,040
1,000,000 Alameda County Water District Revenue COP, Water System Project, FGIC
Insured, 6.00%, 06/01/20 .................................................... 1,002,670
10,730,000 Alhambra COP, Police Facilities AD No. 91-1, AMBAC Insured, 6.75%, 09/01/23 .. 11,406,956
1,000,000 Anaheim COP, AMBAC Insured, Pre-Refunded, 6.75%, 10/01/10 .................... 1,098,440
Anaheim COP,
3,240,000 Anaheim Memorial Hospital, AMBAC Insured, Pre-Refunded, 7.25%, 05/15/20 ... 3,595,072
3,000,000 Anaheim Public Improvement Corp., Refunding, BIG Insured, 6.70%, 08/01/08 . 3,060,840
2,000,000 Anaheim Public Financing Authority Revenue, Refunding, Anaheim Electric Utility
Projects, MBIA Insured, 5.625%, 10/01/22 .................................... 1,911,440
3,485,000 Apple Valley USD, COP, MBIA Insured, Pre-Refunded, 6.875%, 09/01/21 .......... 3,883,336
1,985,000 Arcadia GO, USD, Series B, FGIC Insured, 5.875%, 07/01/20 .................... 1,987,362
5,690,000 Arcata Joint Powers Financing Authority Revenue, Tax Allocation, Community
Development Project, Series A, AMBAC Insured, 6.00%, 08/01/23 ............... 5,706,729
Baldy Mesa Water District, COP, Water System Improvement Project, AMBAC
Insured,
760,000 6.40%, 08/01/17 ........................................................... 788,378
1,170,000 6.45%, 08/01/24 ........................................................... 1,216,847
2,000,000 Barstow RDA, Tax Allocation, Central Redevelopment Project, Series A, MBIA
Insured, 6.25%, 09/01/22 .................................................... 2,043,520
10,775,000 Bay Area Government Association, RDA Revenue, Tax Allocation, Pool A2,
CGIC Insured, 6.60%, 12/15/24 ............................................... 11,391,115
2,995,000 Benicia COP, Refunding, Water System Project, AMBAC Insured, 6.125%,
11/01/17 .................................................................... 3,032,527
5,900,000 Benicia USD, Series A, AMBAC Insured, 6.85%, 08/01/16 ........................ 6,321,673
1,270,000 Berkeley COP, AMBAC Insured, 7.50%, 06/01/19 ................................. 1,348,778
Big Bear Lake Water Revenue, Refunding, FGIC Insured,
720,000 6.25%, 04/01/12 ........................................................... 741,708
4,400,000 6.375%, 04/01/22 .......................................................... 4,538,952
Brea Public Finance Authority Revenue, Tax Allocation, Redevelopment Project,
Series A, MBIA Insured,
1,520,000 7.00%, 08/01/15 ........................................................... 1,652,681
1,550,000 6.75%, 08/01/22 ........................................................... 1,653,990
12,410,000 7.00%, 08/01/23 ........................................................... 13,435,562
3,480,000 Pre-Refunded, 7.00%, 08/01/15 ............................................. 3,892,624
7,445,000 Pre-Refunded, 7.00%, 08/01/23 ............................................. 8,327,754
2,155,000 Buellton USD, Series A, MBIA Insured, 6.375%, 07/01/17 ....................... 2,218,098
$ 3,000,000 Burbank PCR, Wastewater Treatment, Series A, FGIC Insured, 5.50%, 06/01/25 ... $ 2,830,320
2,000,000 Burbank RDA, Refunding, Tax Allocation, City Center Redevelopment Project,
Series A, FSA Insured, 5.50%, 12/01/23 ...................................... 1,876,380
665,000 Burbank Waste Disposal Revenue, Series B, AMBAC Insured, 6.00%, 05/01/22 ..... 666,224
3,950,000 Calaveras County Water District Revenue, Refunding, COP, Water and Sewer
System Improvement Project, AMBAC Insured, 6.00%, 05/01/16 .................. 3,961,218
1,795,000 Calexico CRDA Revenue, Tax Allocation, Refunding, Merged Central Business
and Residential, CGIC Insured, 5.85%, 08/01/15 .............................. 1,782,668
California Educational Facilities Authority Revenue, Pooled Facilities Program,
MBIA Insured,
3,500,000 6.70%, 11/01/09 ........................................................... 3,586,100
1,800,000 7.625%, 11/01/12 .......................................................... 1,896,840
1,000,000 7.00%, 03/01/16 ........................................................... 1,070,240
California Health Facilities Financing Authority Revenue,
3,000,000 Adventist Health Systems West, Series A, MBIA Insured, 7.00%, 03/01/13 .... 3,221,400
5,065,000 Adventist Health Systems West, Series B, MBIA Insured, 6.75%, 03/01/14 .... 5,398,226
3,900,000 Catholic Health Care, Series A, AMBAC Insured, Pre-Refunded, 7.00%,
07/01/06 ................................................................. 4,255,797
7,605,000 Centinela Hospital Medical Center, MBIA Insured, 6.50%, 09/01/08 .......... 8,143,130
4,000,000 Marin General Hospital, Series A, CGIC Insured, 7.00%, 08/01/15 ........... 4,278,880
11,110,000 San Diego Hospital Association, MBIA Insured, 6.625%, 05/01/19 ............ 11,524,403
2,425,000 San Diego Hospital Association, Series A, MBIA Insured, 6.20%, 08/01/12 ... 2,477,307
4,850,000 San Diego Hospital Association, Series A, MBIA Insured, 6.20%, 08/01/20 ... 4,923,478
3,500,000 Scripps Memorial Hospital, Series A, MBIA Insured, 6.40%, 10/01/12 ........ 3,633,350
3,000,000 Sharp Temecula Hospital, MBIA Insured, 7.05%, 08/01/21 .................... 3,240,630
California HFA Revenue,
1,315,000 Series A, MBIA Insured, 7.15%, 08/01/11 ................................... 1,389,455
4,100,000 Series A, MBIA Insured, 8.20%, 02/01/20 ................................... 4,285,320
3,450,000 Series A, MBIA Insured, 7.20%, 02/01/26 ................................... 3,616,842
1,815,000 Series B, MBIA Insured, 6.80%, 08/01/11 ................................... 1,915,805
245,000 Series B, MBIA Insured, 8.625%, 08/01/15 .................................. 256,782
6,600,000 Series K, AMBAC Insured, 6.25%, 08/01/27 .................................. 6,572,610
9,460,000 California Public Capital Improvement Financing Authority Revenue, Pooled
Projects, Series B, BIG Insured, 8.10%, 03/01/18 ............................ 10,073,670
1,850,000 California Public School District, Financing Authority Lease Revenue, Refunding,
Southern Kern USD, Series B, FSA Insured, 5.90%, 09/01/26 ................... 1,834,368
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 .................... 2,363,650
California State GO,
$ 9,000,000 AMBAC Insured, 6.30%, 09/01/06 ........................................... $ 9,802,620
2,255,000 FGIC Insured, 6.00%, 08/01/19 ............................................. 2,270,109
3,500,000 FGIC Insured, 6.00%, 05/01/20 ............................................. 3,522,855
4,400,000 MBIA Insured, 6.00%, 08/01/16 ............................................. 4,446,112
1,000,000 Various Purposes, MBIA Insured, 6.00%, 10/01/21 ........................... 1,005,690
California State Loan Purchase Authority Revenue, Loan Contract, Series A,
CGIC Insured,
2,000,000 7.75%, 10/01/08 ........................................................... 2,163,860
3,365,000 Pre-Refunded, 7.80%, 10/01/18 ............................................. 3,690,496
3,000,000 California State Public Works, Board Lease Revenue, University of California
Project, Series A, AMBAC Insured, 6.40%, 12/01/16 ........................... 3,126,360
California State University and Colleges, Student Union Revenue, MBIA Insured,
1,310,000 Bakersfield, Series A, 6.30%, 11/01/22 .................................... 1,343,078
2,375,000 San Bernardino, Series B, 6.30%, 02/01/22 ................................. 2,436,465
1,500,000 California State University, Fresno Revenue, Auxiliary Residence Student Project,
MBIA Insured, 6.25%, 02/01/17 ............................................... 1,536,795
6,750,000 Calleguas-Las Virgines Public Financing Authority, Installment Purchase
Revenue, Calleguas Municipal Water District Project, Refunding, FGIC Insured,
5.125%, 07/01/21 ............................................................ 6,022,148
Cambria Community Services District Revenue, MBIA Insured,
1,000,000 COP, Wastewater Treatment System Upgrade, 6.90%, 11/01/24 ................. 1,093,890
1,330,000 Water and Wastewater, Refunding, Series A, 6.00%, 05/01/15 ................ 1,339,337
2,485,000 Carpinteria Sanitation District, Capital Facilities Revenue, FGIC Insured, 6.25%,
07/01/14 .................................................................... 2,562,756
Central Coast Water Authority Revenue, Water System Project, Regional
Facilities, AMBAC Insured,
2,500,000 6.50%, 10/01/14 ........................................................... 2,653,450
4,650,000 6.60%, 10/01/22 ........................................................... 4,934,255
3,035,000 Central School District, San Bernardino County, AMBAC Insured, 5.60%, 05/01/16 2,960,248
Central Union High School District, Imperial County, Series A, AMBAC Insured,
890,000 5.50%, 08/01/17 ........................................................... 856,661
1,005,000 5.50%, 08/01/18 ........................................................... 966,458
5,000,000 Cerritos Public Financing Authority Revenue, Los Coyotes Redevelopment
Project, Series A, AMBAC Insured, 5.75%, 11/01/22 ........................... 4,893,350
Chico Public Financing Authority Revenue,
815,000 Southeast Chico Redevelopment Project, Series A, FGIC Insured, 6.625%,
04/01/21 ................................................................. 861,414
3,000,000 Tax Allocation, Merged Redevelopment Project Area, FSA Insured, 5.375%,
04/01/16 ................................................................. 2,797,590
$ 2,000,000 Chino Basin Regional Financing Authority Revenue, Refunding, Municipal Water
District, Sewer System Project, AMBAC Insured, 6.00%, 08/01/16 .............. $ 2,020,960
3,590,000 Chino COP, RDA, Refunding, Water System Improvement Project, AMBAC
Insured, 6.20%, 09/01/18 .................................................... 3,673,827
6,250,000 Chino, Ontario, Upland, etc., Water Facilities Authority, COP, Refunding, Agua de
Lejos Projects, Series A, FGIC Insured, Pre-Refunded, 6.75%, 10/01/11 ....... 6,423,000
2,940,000 Chula Vista Elementary School District COP, MBIA Insured, 6.60%, 08/01/16 .... 3,060,805
3,945,000 Chula Vista Public Finance Authority, Local Agency Revenue, Series 1995-A,
CGIC Insured, 6.125%, 09/02/14 .............................................. 4,017,430
1,000,000 Clayton RDA Revenue, Tax Allocation, Clayton Redevelopment Project, CGIC
Insured, 5.55%, 08/01/20 .................................................... 947,880
1,500,000 Coachella Valley Recreation and Park District, 1915 Act, Refunding, Reassessment
District No. 94-1, MBIA Insured, 6.20%, 09/02/16 ............................ 1,532,730
1,350,000 Colton Joint USD, CFD, Special Tax, Refunding, Southridge Village, Phase III,
CGIC Insured, 5.90%, 09/01/14 ............................................... 1,329,197
Contra Costa County COP,
1,250,000 Buildings Acquisition Project, AMBAC Insured, 6.70%, 02/01/21 ............. 1,308,488
1,000,000 Public Facilities Corp., BIG Insured, 7.80%, 06/01/08 ..................... 1,094,810
2,230,000 Contra Costa Mosquito Abatement District COP, Refunding, Public Improvements
Project, CGIC Insured, 6.25%, 02/01/06 ...................................... 2,349,283
5,425,000 Coronado CDA, Tax Allocation, Coronado Community Development Project,
MBIA Insured, 6.375%, 09/01/23............................................... 5,424,983
4,500,000 Covina COP, Housing Revenue, AMBAC Insured, 7.00%, 03/01/17 .................. 4,638,195
1,105,000 Delano USD, Series A, CGIC Insured, 6.10%, 05/01/17 .......................... 1,115,387
2,735,000 Desert Hot Springs RDA, Tax Allocation, Refunding, Redevelopment Project No. 1,
Series A, MBIA Insured, 5.375%, 09/01/19 .................................... 2,535,181
1,500,000 Desert Sands USD, COP, Capital Projects, FSA Insured, 5.75%, 03/01/20 ........ 1,460,175
4,155,000 Dublin-San Ramon Services District, COP, AMBAC Insured, 7.00%, 12/01/20 ...... 4,468,079
East Bay MUD, Wastewater Treatment System Revenue, AMBAC Insured,
Pre-Refunded,
1,000,000 7.125%, 06/01/17 .......................................................... 1,106,120
2,000,000 7.20%, 06/01/20 ........................................................... 2,217,560
East Bay MUD, Water System Revenue,
6,000,000 AMBAC Insured, Pre-Refunded, 6.50%, 06/01/20 .............................. 6,704,820
5,000,000 MBIA Insured, Pre-Refunded, 7.50%, 06/01/18 ............................... 5,597,000
6,900,000 Refunding, FGIC Insured, 6.00%, 06/01/20 .................................. 6,916,698
Eastern Municipal Water and Sewer District Revenue, COP,
1,000,000 FGIC Insured, Pre-Refunded, 6.75%, 07/01/08 ............................... 1,106,170
1,400,000 Refunding, Series A, FGIC Insured, 6.30%, 07/01/20 ........................ 1,426,894
1,000,000 El Centro COP, AMBAC Insured, 6.875%, 06/01/09 ............................... 1,035,520
$ 5,960,000 El Cerrito RDA, Tax Allocation, Refunding, Redevelopment Project, Series A,
CGIC Insured, 6.80%, 07/01/19................................................ $ 6,317,183
El Dorado County Public Agency Financing Authority Revenue, Refunding, FGIC
Insured,
2,250,000 5.50%, 02/15/16 ........................................................... 2,168,820
3,500,000 5.50%, 02/15/21 ........................................................... 3,336,585
6,900,000 Eureka Public Financing Authority Revenue, Tax Allocation, Eureka Redevelopment
Project, CGIC Insured, Pre-Refunded, 7.40%, 11/01/12 ........................ 7,525,623
Fairfield Public Financing Authority Revenue,
2,000,000 Fairfield Redevelopment Project, Series C, CGIC Insured, 5.25%, 08/01/13 .. 1,859,140
5,000,000 Fairfield Redevelopment Project, Series C, CGIC Insured, 5.50%, 08/01/23 .. 4,692,500
4,750,000 Municipal Park, ID No. 1, FGIC Insured, 6.30%, 07/01/23 ................... 4,851,460
4,300,000 Refunding, Series B, MBIA Insured, 5.80%, 04/01/23 ........................ 4,236,360
1,265,000 Farmersville USD, Series A, AMBAC Insured, 5.70%, 07/01/18 ................... 1,240,143
2,525,000 Fillmore Public Financing Authority Revenue, Refunding, Central City
Redevelopment Project, Series A, AMBAC Insured, 5.75%, 10/01/16 ............. 2,506,820
Folsom Public Financing Authority Revenue, Refunding, AMBAC Insured,
2,000,000 6.00%, 10/01/08 ........................................................... 2,070,720
1,000,000 6.00%, 10/01/12 ........................................................... 1,008,940
3,400,000 6.00%, 10/01/19 ........................................................... 3,408,364
5,850,000 Fontana RDA, Tax Allocation, Refunding, Southwest Industrial Park Project, FGIC
Insured, 6.125%, 09/01/25.................................................... 5,937,399
1,000,000 Fresno COP, City Hall Refinancing Project, AMBAC Insured, 6.25%, 08/01/19 .... 1,021,530
2,000,000 Fresno USD, Series B, FSA Insured, 5.875%, 08/01/20 .......................... 1,978,280
7,140,000 Fresno Water System Revenue, Water Remediation Project, Series A, FGIC
Insured, 5.875%, 06/01/20 ................................................... 7,147,497
1,780,000 Fruitvale School District, Series B, MBIA Insured, 6.00%, 08/01/20 ........... 1,784,397
1,000,000 Fulton El Camino Recreational and Park District COP, Series A, CGIC Insured,
Pre-Refunded, 6.375%, 12/01/11............................................... 1,079,160
1,000,000 Glendale Hospital Revenue, Refunding, Adventist Health, Series A, MBIA Insured,
6.75%, 03/01/13 ............................................................. 1,054,020
Glendale RDA, Tax Allocation, Refunding, Central Glendale Redevelopment
Project, AMBAC Insured,
1,500,000 5.50%, 12/01/14 ........................................................... 1,431,450
4,030,000 5.60%, 12/01/16 ........................................................... 3,859,733
4,255,000 5.60%, 12/01/17 ........................................................... 4,070,801
4,490,000 5.60%, 12/01/18 ........................................................... 4,291,228
9,775,000 6.00%, 12/01/20 ........................................................... 9,802,175
1,000,000 Goleta Water District Revenue, Refunding, COP, Goleta Reclamation Project,
FGIC Insured, 5.50%, 12/01/12................................................ 967,430
$ 2,000,000 Grossmont Hospital District Revenue, La Mesa, Series A, MBIA Insured,
Pre-Refunded, 8.00%, 11/15/17 ............................................... $ 2,145,900
1,000,000 Hercules COP, Refunding, Capital Improvement Projects, AMBAC Insured, 6.00%,
06/01/15 .................................................................... 1,009,950
3,425,000 Hesperia Water District COP, Refunding, Water Facilities Improvement Projects,
FGIC Insured, 7.15%, 06/01/26 ............................................... 3,773,494
13,375,000 Imperial Irrigation District COP, Electric System Project, MBIA Insured, 6.00%,
11/01/15 .................................................................... 13,517,176
2,260,000 Industry, City of, Public Works and Capital Improvement, FGIC Insured,
Pre-Refunded, 6.80%, 07/01/15 ............................................... 2,453,614
8,535,000 Kern County Board of Education COP, Administration Building Financing Project,
MBIA Insured, 6.20%, 02/01/23 ............................................... 8,670,877
Kern County High School District, CGIC Insured, ETM,
1,535,000 6.625%, 08/01/14 .......................................................... 1,684,663
1,400,000 6.625%, 08/01/15 .......................................................... 1,540,714
3,460,000 King City Joint Union High School District, Series A, AMBAC Insured, 6.30%,
08/01/19 .................................................................... 3,546,950
3,080,000 La Mirada RDA, Industrial Commercial Redevelopment Project, Series A, MBIA
Insured, 6.60%, 08/15/21 .................................................... 3,243,918
6,650,000 La Quinta RDA, Tax Allocation, Housing Redevelopment Project Areas No 1 & 2,
MBIA Insured, 6.00%, 09/01/25 ............................................... 6,670,815
Lake Arrowhead Community Services District COP, Refunding,
7,600,000 FGIC Insured, 6.125%, 06/01/05 ............................................ 8,101,676
14,000,000 FGIC Insured, 6.50%, 06/01/15 ............................................. 14,676,060
4,000,000 San Bernardino County, Series C, BIG Insured, Pre-Refunded, 7.80%, 09/01/10
4,258,680
Lake Elsinore Public Financing Authority Revenue, Tax Allocation, Lake Elsinore
Redevelopment Projects,
3,000,000 Series A, CGIC Insured, 5.65%, 09/01/15 ................................... 2,894,310
1,750,000 Series A, CGIC Insured, 5.80%, 09/01/25 ................................... 1,699,548
1,255,000 Series A, FGIC Insured, 6.25%, 02/01/19 ................................... 1,274,942
12,840,000 Series C, FGIC Insured, 6.625%, 02/01/17 .................................. 13,424,734
2,485,000 Lakewood Public Financing Authority, Water Revenue, FGIC Insured, 5.70%,
04/01/16 .................................................................... 2,438,580
2,500,000 Lakewood RDA, Subordinate Tax Allocation, Refunding, Town Center
Redevelopment Project, CGIC Insured, Pre-Refunded, 8.50%, 09/01/13 .......... 2,679,875
3,000,000 Lakewood RDA, Tax Allocation, Refunding, Redevelopment Project No. 1,
Series A, CGIC Insured, 6.50%, 09/01/17 ..................................... 3,142,620
Lancaster RDA, Tax Allocation, MBIA Insured,
$ 1,330,000 Combination Redevelopment Project Areas, Library, 5.75%, 08/01/23 ......... $ 1,292,614
2,020,000 Combination Redevelopment Project, Fire Protection, 5.75%, 08/01/23 ....... 1,963,218
3,595,000 Refunding, Amargosa Redevelopment Project, 5.50%, 02/01/15 ................ 3,449,474
1,390,000 Refunding, Lancaster Redevelopment Project No. 5, 5.50%, 02/01/15 ......... 1,333,733
11,245,000 Refunding, Lancaster Redevelopment Project No. 5, 6.85%, 02/01/19 ......... 11,951,523
2,800,000 Refunding, Lancaster Redevelopment Project No. 6, 5.65%, 08/01/25 ......... 2,680,608
Lincoln RDA, Tax Allocation, Local Government Finance Authority Revenue,
AMBAC Insured,
1,500,000 9.00%, 08/01/11 ........................................................... 1,626,915
470,000 9.00%, 08/01/12 ........................................................... 508,267
2,425,000 Lincoln USD, CFD No. 1, AMBAC Insured, Pre-Refunded, 6.90%, 09/01/21 ......... 2,710,859
1,250,000 Livermore Public Building COP, AMBAC Insured, 7.05%, 04/01/17 ................ 1,326,375
2,000,000 Local Government Finance Authority Revenue, Refunding, Bunker Hill Project,
AMBAC Insured, Pre-Refunded, 6.75%, 12/01/14 ................................ 2,181,740
8,800,000 Lodi COP, Refunding, Wastewater Treatment Project, AMBAC Insured, 6.70%,
08/01/26 .................................................................... 9,454,368
Loma Linda Hospital Revenue, Loma Linda University Medical Center Project,
1,910,000 Refunding, Series B, AMBAC Insured, 7.00%, 12/01/15 ....................... 2,029,012
2,650,000 Refunding, Series C, MBIA Insured, 5.375%, 12/01/22 ....................... 2,444,864
2,500,000 Series B, MBIA Insured, Pre-Refunded, 7.00%, 12/01/10 ..................... 2,777,850
2,500,000 Long Beach RDA, Refunding, Downtown Redevelopment Project, Series A,
AMBAC Insured, Pre-Refunded, 7.75%, 11/01/10 ................................ 2,745,900
3,500,000 Los Angeles Convention and Exhibition Center COP, AMBAC Insured,
Pre-Refunded, 7.00%, 08/15/21 ............................................... 3,869,565
3,000,000 Los Angeles County Capital Assets Leasing Corp., Leasehold Revenue,
Refunding, AMBAC Insured, 6.00%, 12/01/16.................................... 3,027,390
8,050,000 Los Angeles County COP, Correctional Facilities Projects, MBIA Insured, 6.50%,
09/01/13 .................................................................... 8,354,451
5,825,000 Los Angeles County COP, Refunding, San Pedro Peninsula Hospital Project,
AMBAC Insured, 6.25%, 05/01/15 .............................................. 5,918,025
Los Angeles County Transport Commission Sales Tax,
2,000,000 Proposition C, Second Senior Series A, Senior Lien, MBIA Insured, 6.00%,
07/01/23 ................................................................. 2,005,000
1,440,000 Series A, Pre-Refunded, FGIC Insured, 6.75%, 07/01/20 ..................... 1,592,885
2,740,000 Series B, FGIC Insured, 6.50%, 07/01/13 ................................... 2,847,381
5,025,000 Series B, FGIC Insured, 6.50%, 07/01/15 ................................... 5,221,930
3,200,000 Los Angeles CRDA, Tax Allocation, Hollywood Redevelopment Project, Series B,
MBIA Insured, 6.10%, 07/01/22................................................ 3,238,272
Los Angeles Department of Water and Power, Electric Plant Revenue,
$ 1,275,000 Crossover Refunding, Custodial Receipts, FGIC Insured, 5.375%, 09/01/23 ... $ 1,183,187
17,215,000 FGIC Insured, 6.125%, 01/15/33 ............................................ 17,402,299
2,000,000 MBIA Insured, 6.00%, 08/15/32 ............................................. 2,004,920
3,500,000 Refunding, FGIC Insured, 6.00%, 02/01/28 .................................. 3,512,670
6,875,000 Los Angeles Department of Water and Power, Waterworks Revenue, Second
Issue, FGIC Insured, 6.40%, 11/01/31 ........................................ 7,127,106
Los Angeles Harbor Department Revenue, Series B,
3,790,000 AMBAC Insured, 6.60%, 08/01/14 ............................................ 3,980,599
2,000,000 AMBAC Insured, 6.60%, 08/01/15 ............................................ 2,084,900
2,500,000 MBIA Insured, 6.20%, 08/01/25 ............................................. 2,529,500
Los Angeles Mortgage Revenue, Refunding, MBIA Insured,
2,000,000 Series I, 6.50%, 07/01/22 ................................................. 2,066,440
4,735,000 Series II-E, 5.625%, 07/01/22 ............................................. 4,550,809
Los Angeles Wastewater System Revenue,
1,000,000 FGIC Insured, Pre-Refunded, 6.70%, 08/01/12 ............................... 1,071,690
12,100,000 Refunding, Series A, FGIC Insured, 6.00%, 12/01/18 ........................ 12,127,830
2,000,000 Refunding, Series A, MBIA Insured, 5.70%, 06/01/20 ........................ 1,946,460
3,250,000 Series B, AMBAC Insured, 6.00%, 06/01/22 .................................. 3,245,548
6,130,000 Series B, AMBAC Insured, Pre-Refunded, 7.10%, 06/01/18 .................... 6,694,083
15,000,000 Series D, MBIA Insured, Pre-Refunded, 6.70%, 12/01/21 ..................... 16,489,350
4,000,000 Lynwood Public Financing Authority Revenue, Series A, AMBAC Insured, 5.75%,
09/01/18 .................................................................... 3,921,120
4,500,000 Madera County COP, Valley Children's Hospital, MBIA Insured, 5.75%, 03/15/28 . 4,365,585
4,000,000 Madera RDA, Tax Revenue, Refunding, Madera Redevelopment Project Area,
CGIC Insured, 5.80%, 09/01/23 ............................................... 3,887,840
4,500,000 Marysville Hospital Revenue, Fremont Rideout Health Group, AMBAC Insured,
6.30%, 01/01/22 ............................................................. 4,585,770
Menlo Park CDA, Tax Allocation, Las Pulgas Community Project, AMBAC Insured,
Pre-Refunded,
13,265,000 6.625%, 10/01/21 .......................................................... 14,791,934
3,095,000 6.70%, 10/01/22 ........................................................... 3,463,676
5,600,000 Mesa Construction Water District COP, Water Project, FGIC Insured, 6.40%,
03/15/18 .................................................................... 5,838,560
6,500,000 Metropolitan Water District, Southern California Waterworks Revenue, Series A,
MBIA Insured, 5.50%, 07/01/25 ............................................... 6,175,455
Modesto COP,
2,000,000 Municipal Improvement, FGIC Insured, Pre-Refunded, 7.30%, 11/01/20 ........ 2,176,940
5,000,000 Water System Improvement Project, AMBAC Insured, 6.25%, 10/01/22 .......... 5,083,700
Modesto Health Facilities Revenue, Memorial Hospital Association, MBIA Insured,
$ 5,565,000 Refunding, Series A, 6.00%, 06/01/18 ...................................... $ 5,579,859
1,500,000 Series 1991, 6.875%, 06/01/21 ............................................. 1,596,570
Modesto Irrigation District COP,
6,745,000 Crossover Refunding, Geysers Geothermal Power Project, BIG Insured, 5.00%,
10/01/17 ................................................................. 5,969,932
3,000,000 Refunding and Capital Improvements Projects, Series A, MBIA Insured, 6.00%,
10/01/21 ................................................................. 3,011,670
Modesto Irrigation District, Financing Authority Revenue, Domestic Water Project,
AMBAC Insured,
2,000,000 Series A, 6.125%, 09/01/19 ................................................ 2,027,320
2,500,000 Series C, 5.75%, 09/01/22 ................................................. 2,446,825
4,000,000 Modesto Wastewater Treatment Facilities Revenue, Refunding, AMBAC Insured,
Pre-Refunded, 8.00%, 11/01/07................................................ 4,136,760
2,000,000 Monrovia RDA, Public Parking Facilities, Lease Revenue, Refunding, Series A,
AMBAC Insured, 5.20%, 04/01/13............................................... 1,870,300
720,000 Montebello USD, COP, Series B, MBIA Insured, 7.25%, 06/01/10 ................. 788,458
3,215,000 Monterey County COP, Refunding, Sheriff's Facilities Project, CGIC Insured,
5.25%, 12/01/17 ............................................................. 2,940,728
Moulton Niguel Water District,
1,420,000 AMBAC Insured, Pre-Refunded, 7.25%, 04/01/16 .............................. 1,571,897
3,310,000 COP, AMBAC Insured, 5.375%, 09/01/13 ...................................... 3,154,629
2,280,000 Refunding, Consolidated Improvement Districts, MBIA Insured, 5.25%, 09/01/13
2,142,288
1,500,000 Mountain View COP, Improvement Financing Authority Revenue, City
Hall/Community Theatre, MBIA Insured, 6.50%, 08/01/16 ....................... 1,559,265
2,535,000 Mountain View School District, Refunding, CFD, Special Tax, Series A, CGIC
Insured, 7.25%, 10/01/11 .................................................... 2,757,953
1,000,000 Mt. Diablo Hospital District Revenue, Series A, AMBAC Insured, Pre-Refunded,
7.00%, 12/01/17 ............................................................. 1,111,140
Mt. Diablo USD, CFD No. 1, Special Tax,
500,000 AMBAC Insured, 6.25%, 08/01/14 ............................................ 512,375
1,000,000 CGIC Insured, 6.00%, 08/01/24 ............................................. 1,007,180
1,000,000 FGIC Insured, 7.05%, 08/01/20 ............................................. 1,081,050
2,000,000 National City Joint Powers Authority, Lease Revenue, National City Police
Facilities Project, AMBAC Insured, 6.75%, 10/01/17 .......................... 2,146,220
North City West School Facilities, Financing Authority, Special Tax, Refunding,
Series B, CGIC Insured,
1,260,000 5.75%, 09/01/15 ........................................................... 1,244,048
2,500,000 6.00%, 09/01/19 ........................................................... 2,496,650
$ 5,000,000 Northern California Power Agency Revenue, Multiple Capital Facilities, Series A,
MBIA Insured, 6.50%, 08/01/12................................................ $ 5,285,550
Northern California Power Agency Revenue, Refunding, Public Power Hydroelectric
Project No. 1,
3,200,000 AMBAC Insured, Pre-Refunded, 7.50%, 07/01/23 .............................. 3,841,056
4,000,000 Series A, MBIA Insured, 5.50%, 07/01/23 ................................... 3,754,480
2,750,000 Series A, MBIA Insured, 5.50%, 07/01/24 ................................... 2,561,075
Northern California Transmission Revenue, California/Oregon Transmission
Project, Series A, MBIA Insured,
2,500,000 6.25%, 05/01/10 ........................................................... 2,608,025
4,000,000 6.50%, 05/01/16 ........................................................... 4,209,680
10,500,000 5.25%, 05/01/20 ........................................................... 9,581,670
12,835,000 6.00%, 05/01/24 ........................................................... 12,858,616
4,000,000 Pre-Refunded, 7.00%, 05/01/10 ............................................. 4,383,480
5,810,000 Norwalk Community Facilities Financing Authority, Lease Revenue, MBIA Insured,
6.90%, 02/01/21 ............................................................. 6,174,055
4,000,000 Oakland Special Revenue, Refunding, Series A, FGIC Insured, 7.60%, 08/01/21 .. 4,311,080
3,940,000 Oceanside Community Development COP, Public Parking Project, CGIC Insured,
Pre-Refunded, 7.875%, 04/01/19............................................... 4,727,409
Oceanside COP,
4,715,000 Corporation Yard Project, AMBAC Insured, Pre-Refunded, 7.30%, 08/01/21 .... 5,400,420
1,000,000 Refunding, Civic Center Project, MBIA Insured, 5.75%, 08/01/15 ............ 987,410
5,000,000 Water Use Finance Association of California, Series A, AMBAC Insured,
6.50%, 10/01/17 .......................................................... 5,222,900
10,000,000 Ontario Redevelopment Financing Authority Revenue, Ontario Redevelopment
Project No. 1, MBIA Insured, 5.80%, 08/01/23 ................................ 9,733,300
Orange County CFD No. 86-1, Special Tax, Rancho Santa Margarita, Series A,
CGIC Insured,
5,000,000 7.30%, 08/15/09 ........................................................... 5,351,950
10,000,000 Pre-Refunded, 7.625%, 07/01/18 ............................................ 10,862,900
Orange County COP, AMBAC Insured,
11,250,000 Civic Center Expansion Project, Pre-Refunded, 6.70%, 08/01/18 ............. 12,460,050
4,770,000 Juvenile Justice Center Facilities, 6.375%, 06/01/11 ...................... 4,893,066
5,000,000 Juvenile Justice Center Facilities, 6.00%, 06/01/17 ....................... 4,993,750
3,500,000 Orange County Financing Authority Revenue, Tax Allocation, Refunding, Series A,
MBIA Insured, 6.50%, 09/01/22 ............................................... 3,618,790
5,200,000 Orange RDA Revenue, Tax Allocation, Refunding, Southwest Redevelopment
Project, Series A, AMBAC Insured, 5.70%, 10/01/23 ........................... 4,984,668
Oroville Public Finance Authority, Tax Allocation Revenue, Oroville Redevelopment
Project No. 1, AMBAC Insured,
$ 1,245,000 5.90%, 09/15/21 ........................................................... $ 1,243,245
2,890,000 6.10%, 09/15/23 ........................................................... 2,934,188
1,185,000 Otay Water District, COP, Water Facilities Project, MBIA Insured, 5.60%, 09/01/14
1,157,200
5,000,000 Oxnard Financing Authority, Solid Waste Revenue, AMBAC Insured, 6.00%,
05/01/16 .................................................................... 4,993,750
Oxnard Financing Authority Wastewater Revenue, FGIC Insured,
2,800,000 5.50%, 06/01/14 ........................................................... 2,674,000
1,410,000 5.25%, 06/01/20 ........................................................... 1,283,185
3,520,000 Oxnard Public Facilities Corp. COP, AMBAC Insured, Pre-Refunded, 7.50%,
09/01/06 .................................................................... 3,843,875
Palm Desert Financing Authority Tax Allocation Revenue, Project Area No. 2,
Series A, MBIA Insured,
2,490,000 5.95%, 08/01/24 ........................................................... 2,486,464
1,380,000 5.85%, 08/01/25 ........................................................... 1,359,065
2,250,000 Palmdale Water District COP, Littlerock Dam Project, Series A, MBIA Insured,
5.75%, 10/01/23 ............................................................. 2,201,310
4,750,000 Paramount USD, COP, Master Lease Program, FSA Insured, 6.30%, 09/01/26 ....... 4,841,010
1,000,000 Petaluma COP, Refunding, Series A, AMBAC Insured, 5.625%, 08/01/13 ........... 985,390
8,000,000 Pico Rivera Public Financing Authority Revenue, Refunding, Water Enterprise
Project, Series A, FGIC Insured, 6.00%, 12/01/17 ............................ 8,046,640
1,000,000 Pinole RDA, Tax Allocation, Pinole Vista Redevelopment Project, Series A, MBIA
Insured, 6.125%, 08/01/17 ................................................... 1,012,230
1,500,000 Pittsburg Public Financing Authority, Wastewater Revenue, FGIC Insured,
Pre-Refunded, 6.80%, 06/01/22 ............................................... 1,660,500
4,700,000 Pittsburg RDA, Tax Allocation, Refunding, Los Medanos Community Development
Project, Series B, CGIC Insured, 5.80%, 08/01/34 ............................ 4,552,702
3,745,000 Placer County COP, Jail Kitchen Project, MBIA Insured, 6.90%, 10/01/21 ....... 4,068,531
Placer County Water Agency Revenue, COP,
2,350,000 CGIC Insured, 5.90%, 07/01/25 ............................................. 2,330,636
1,285,000 Refunding, MBIA Insured, 5.625%, 07/01/18 ................................. 1,240,231
5,500,000 Pleasant Hill RDA, Tax Allocation, Refunding, Pleasant Hill Commons Project,
CGIC Insured, 6.90%, 07/01/21 ............................................... 5,888,740
2,000,000 Port Hueneme RDA, Tax Allocation, Refunding, Central Community Redevelopment
Project, AMBAC Insured, 5.50%, 05/01/23 ..................................... 1,890,140
Port of Oakland, Revenue, BIG Insured,
1,500,000 Series B, 7.25%, 11/01/16 ................................................. 1,557,420
1,165,000 Series C, Pre-Refunded, 7.25%, 11/01/19 ................................... 1,220,431
Porterville COP, Refunding, AMBAC Insured,
$ 4,935,000 Sewer System and Improvement Project, 6.30%, 10/01/18 ..................... $ 5,099,928
6,075,000 Sewer System Project, 6.30%, 10/01/18 ..................................... 6,278,027
2,460,000 Poway RDA, Tax Allocation, Refunding, Parguay Redevelopment Project, FGIC
Insured, 5.75%, 12/15/26 .................................................... 2,387,725
3,000,000 Ramona Municipal Water District COP, Refunding, AMBAC Insured, 7.20%,
10/01/10 .................................................................... 3,290,670
Rancho Cucamonga RDA, Tax Allocation, Refunding, Rancho Redevelopment
Project, Series A, FGIC Insured, Pre-Refunded,
1,215,000 7.75%, 05/01/06 ........................................................... 1,277,706
9,690,000 7.70%, 05/01/16 ........................................................... 10,306,187
5,000,000 Redding Electric System Revenue, Refunding, COP, Series A, FGIC Insured,
5.50%, 06/01/11 ............................................................. 4,919,850
3,230,000 Redding Joint Powers Financing Authority, Water Revenue, Series A, AMBAC
Insured, 5.60%, 06/15/13..................................................... 3,157,357
2,120,000 Redding RDA, Tax Allocation, Hilltop Cypress Redevelopment, Series C, CGIC
Insured, 6.00%, 09/01/22..................................................... 2,125,703
2,115,000 Redlands USD, Series B, CGIC Insured, 6.25%, 06/01/19 ........................ 2,160,261
1,000,000 Redondo Beach RDA, Tax Allocation, South Bay Center Redevelopment Project,
FGIC Insured, 8.625%, 05/01/14 .............................................. 1,042,180
2,745,000 Redwood City Public Financing Authority Revenue, Local Agency, Series A,
AMBAC Insured, 6.50%, 07/15/11............................................... 2,893,422
Riverside RDA, Series A,
12,540,000 Lease Revenue, AMBAC Insured, 6.375%, 10/01/23 ............................ 12,981,784
2,000,000 Lease Revenue, AMBAC Insured, 6.50%, 10/01/24 ............................. 2,097,300
2,200,000 Tax Allocation, Merged Redevelopment Project, MBIA Insured, 5.625%, 08/01/23 2,115,696
2,510,000 Rubidoux Community Service District COP, Water System Improvement Project,
AMBAC Insured, 6.20%, 12/01/14 .............................................. 2,557,514
11,800,000 Sacramento COP, MBIA Insured, 6.50%, 06/01/15 ................................ 12,201,554
5,920,000 bSacramento County Airport System Revenue, Series A, MBIA Insured, 6.00%,
07/01/17 .................................................................... 5,912,955
Sacramento MUD, Electric Revenue, MBIA Insured,
1,425,000 Refunding, Senior Lien, Series A, 5.75%, 08/15/13 ......................... 1,415,695
4,250,000 Series E, 5.75%, 05/15/22 ................................................. 4,160,070
1,000,000 Series I, 6.00%, 01/01/24 ................................................. 1,002,860
2,600,000 Series X, Pre-Refunded, 7.00%, 07/01/20 ................................... 2,868,684
2,000,000 Sacramento RDA, Tax Allocation, Merged Downtown Redevelopment Project A,
MBIA Insured, 6.50%, 11/01/13 ............................................... 2,098,940
5,300,000 San Bernardino County COP, Refunding, Capital Improvement Projects, MBIA
Insured, 7.60%, 07/01/15 .................................................... 5,407,696
$ 5,680,000 San Bernardino County Mortgage Revenue, Refunding, Don Miguel Apartments
Project, MBIA Insured, 6.40%, 03/01/25 ...................................... $ 5,813,423
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 ......................................................... 2,176,061
1,950,000 Series A, CGIC Insured, 5.75%, 10/01/25 ................................... 1,906,613
3,515,000 Southeast Industrial Park, Series F, MBIA Insured, Pre-Refunded, 7.375%,
03/01/14 ................................................................. 3,905,727
4,265,000 State College Project No. 4, AMBAC Insured, Pre-Refunded, 7.20%, 09/01/08 . 4,701,139
2,060,000 State College Project, Series D, FGIC Insured, Pre-Refunded, 7.375%, 09/01/10 2,312,329
5,750,000 San Bernardino Municipal Water and Sewer Department COP, FGIC Insured,
6.25%, 02/01/17 ............................................................. 5,870,578
2,382,000 San Bernardino RDA, Capital Appreciation, Series B, AMBAC Insured, 7.70%,
01/10/09 .................................................................... 3,960,885
2,000,000 San Buenaventura COP, Water Project, AMBAC Insured, Pre-Refunded, 7.50%,
10/01/20 .................................................................... 2,254,100
2,250,000 San Buenaventura Public Facilities, Financing Authority Lease Revenue,
Refunding, CGIC Insured, 5.75%, 06/01/14 .................................... 2,222,618
2,000,000 San Diego Community College District COP, Series 1991, MBIA Insured, 6.50%,
12/01/12 .................................................................... 2,088,120
2,375,000 San Diego County COP, Inmate Reception Center and Cooling, MBIA Insured,
6.25%, 08/01/24 ............................................................. 2,426,466
1,650,000 San Diego IDR, San Diego Gas & Electric, Custodial Receipts, Series A, AMBAC
Insured, 6.40%, 09/01/18..................................................... 1,696,200
San Diego Mortgage Revenue, Refunding, University Canyon North, Series A,
MBIA Insured,
305,000 5.125%, 07/01/03 .......................................................... 301,212
3,105,000 5.75%, 07/01/25 ........................................................... 2,966,113
San Diego RDA, Tax Allocation, Center City Redevelopment, Series B, AMBAC
Insured,
3,000,000 5.375%, 09/01/15 .......................................................... 2,833,530
3,000,000 5.40%, 09/01/16 ........................................................... 2,837,730
San Francisco BART District, Sales Tax Revenue, FGIC Insured,
2,580,000 6.60%, 07/01/12 ........................................................... 2,758,175
2,000,000 5.50%, 07/01/15 ........................................................... 1,940,400
San Francisco City and County Airports, International Airport Commission Revenue,
FGIC Insured,
3,500,000 Second Series, Issue 8A, 6.25%, 05/01/20 .................................. 3,532,655
6,400,000 Second Series, Issue 9B, 6.00%, 05/01/25 .................................. 6,441,792
6,900,000 Series 5, 6.50%, 05/01/24 ................................................. 7,121,559
$ 3,000,000 San Francisco City and County COP, Courthouse Project, CGIC Insured, 5.60%,
04/01/16 .................................................................... $ 2,892,150
San Francisco City and County Sewer Revenue, AMBAC Insured,
730,000 Pre-Refunded, 6.50%, 10/01/16 ............................................. 788,495
2,000,000 Refunding, 6.00%, 10/01/11 ................................................ 2,037,500
1,500,000 Series A, Pre-Refunded, 7.25%, 10/01/15 ................................... 1,582,710
2,370,000 Series B, Pre-Refunded, 7.25%, 10/01/15 ................................... 2,500,682
1,000,000 San Gabriel USD, COP, School Facilities Development Program, Series A, FSA
Insured, 6.00%, 09/01/15 .................................................... 1,003,130
3,000,000 San Jacinto USD, COP, Refunding Project, AMBAC Insured, 6.50%, 10/01/23 ...... 3,123,750
8,740,000 San Jose Financing Authority Revenue, Convention Project, CGIC Insured,
6.40%, 09/01/17 ............................................................. 8,986,206
San Jose RDA, Tax Allocation, Merged Area Redevelopment Project, Pre-Refunded,
3,500,000 Refunding, Series A, MBIA Insured, 7.50%, 08/01/09 ........................ 3,580,640
1,250,000 Series A, AMBAC Insured, 6.90%, 08/01/11 .................................. 1,315,175
3,235,000 Series B, MBIA Insured, 6.625%, 08/01/11 .................................. 3,501,370
10,495,000 San Marcos Public Facilities Authority Revenue, Tax Allocation, Refunding,
Series A, CGIC Insured, 5.50%, 08/01/23 ..................................... 9,849,558
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 ........... 2,187,833
San Mateo County Transit District Revenue, Sales Tax, Series A, MBIA Insured,
4,100,000 6.70%, 06/01/10 ........................................................... 4,334,602
6,700,000 6.50%, 06/01/20 ........................................................... 7,059,120
San Ramon COP,
5,110,000 Central Park Expansion Project, CGIC Insured, Pre-Refunded, 7.20%, 02/01/25 5,955,092
12,070,000 Refunding, Capital Improvement Project, AMBAC Insured, 7.05%, 03/01/21 .... 13,088,949
1,000,000 Sanger USD, Series A, CGIC Insured, 5.60%, 08/01/14 .......................... 965,790
3,250,000 Santa Ana COP, Refunding, Parking Facilities Project, Series A, AMBAC Insured,
6.125%, 06/01/16 ............................................................ 3,297,645
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 ............. 2,888,543
1,000,000 Santa Ana Financing Authority Water Revenue, MBIA Insured, 6.125%, 09/01/24 .. 1,011,420
5,000 Santa Ana HMR, Series A, FGIC Insured, 8.875%, 06/01/17 ...................... 5,090
Santa Barbara COP, Refunding, AMBAC Insured,
3,575,000 Municipal Improvement Program, 6.15%, 08/01/17 ............................ 3,629,269
6,500,000 Water System Improvement Project, 6.70%, 04/01/27 ......................... 6,954,220
1,555,000 Santa Clara County COP, Board of Education Partners, Administration Building
Project, Series A, MBIA Insured, 6.00%, 04/01/25 ............................ 1,559,012
4,500,000 Santa Clara County COP, Partner Refunding Cap, Project I, AMBAC Insured,
6.25%, 10/01/16 ............................................................. 4,601,925
$ 1,000,000 Santa Clara County Transit District, Sales Tax Revenue, Series A, AMBAC Insured,
6.25%, 06/01/21 ............................................................. $ 1,011,030
Santa Clara Electric Revenue, Series A, MBIA Insured,
1,350,000 6.50%, 07/01/21 ........................................................... 1,422,698
1,500,000 5.75%, 07/01/24 ........................................................... 1,477,425
900,000 Santa Clara RDA, Tax Allocation, Refunding, Bayshore North Project, AMBAC
Insured, 7.50%, 06/01/08..................................................... 929,178
Santa Cruz County COP,
1,475,000 Capital Facilities Project, MBIA Insured, 6.70%, 09/01/20 ................. 1,578,486
2,675,000 Sub-Joint Wastewater Treatment Project, AMBAC Insured, 6.20%, 09/01/19 .... 2,726,735
3,600,000 Santa Cruz Hospital Revenue, Dominican Santa Cruz, Series A, MBIA Insured,
7.00%, 12/01/13 ............................................................. 3,758,328
11,830,000 Santa Fe Springs RDA, Tax Allocation, Redevelopment Project, Series A, MBIA
Insured, 6.40%, 09/01/22 .................................................... 12,316,213
Santa Fe Springs, Series A,
900,000 Public Financing Authority, Water Revenue, MBIA Insured, 5.90%, 05/01/21 .. 902,952
1,190,000 Public Financing Authority, Water Revenue, MBIA Insured, 5.90%, 05/01/26 .. 1,188,215
2,750,000 RDA Revenue, Tax Allocation, AMBAC Insured, Pre-Refunded, 7.25%, 08/01/14 . 3,025,440
3,500,000 Santa Margarita/Dana Point Authority Revenue, Refunding, Improvement Districts 3,
3A, 4 and 4A, Series B, MBIA Insured, 5.75%, 08/01/20 ....................... 3,406,445
Santa Maria COP, Local Water System, Refunding, FGIC Insured,
3,675,000 5.50%, 08/01/13 ........................................................... 3,552,439
1,785,000 5.50%, 08/01/21 ........................................................... 1,689,806
1,525,000 Santa Monica Community College District, Series B, AMBAC Insured, 5.75%,
07/01/20 .................................................................... 1,493,905
Santa Rosa High School District,
1,000,000 FGIC Insured, 5.90%, 05/01/16 ............................................. 1,010,300
4,450,000 FGIC Insured, 5.50%, 05/01/20 ............................................. 4,245,256
1,050,000 Refunding, CGIC Insured, 5.75%, 05/01/18 .................................. 1,035,773
2,000,000 Santa Rosa Wastewater Service Facilities District, Refunding & Improvement,
AMBAC Insured, 6.00%, 07/02/15 .............................................. 2,054,980
Santa Rosa Water Revenue, Series A,
2,500,000 FGIC Insured, Pre-Refunded, 7.00%, 09/01/16 ............................... 2,737,125
1,115,000 Refunding, FGIC Insured, 5.25%, 09/01/12 .................................. 1,055,615
2,000,000 Subregional Wastewater Project, AMBAC Insured, Pre-Refunded, 6.50%,
09/01/16 ................................................................. 2,179,340
3,450,000 Sebastopol CDA, Tax Allocation, Community Development Project, CGIC Insured,
6.85%, 12/01/20 ............................................................. 3,685,221
Selma Public Financing Authority Revenue, Series A, MBIA Insured,
$ 145,000 5.80%, 09/15/11 ........................................................... $ 145,735
125,000 5.80%, 09/15/12 ........................................................... 125,171
2,400,000 5.875%, 09/15/22 .......................................................... 2,388,624
5,000,000 Simi Valley Public Financing Authority Revenue, Refunding, MBIA Insured, 5.75%,
09/01/23 .................................................................... 4,892,000
1,325,000 Sonoma CDA, COP, Refunding, Sonoma Creek Senior Housing Project, AMBAC
Insured, 6.75%, 02/01/13 .................................................... 1,401,638
2,400,000 bSonoma Valley USD, FSA Insured, 6.00%, 07/15/21 .............................. 2,396,832
9,700,000 South Coast Air Quality Management District Revenue, Refunding, Building Corp.,
MBIA Insured, 5.50%, 08/01/14 ............................................... 9,261,269
South Orange County Public Financing Authority Revenue, Refunding, Special
Tax, Senior Lien, Series A, MBIA Insured,
13,500,000 6.20%, 09/01/13 ........................................................... 13,724,775
3,250,000 6.00%, 09/01/18 ........................................................... 3,245,710
Southern California Public Power Authority Revenue, Refunding,
2,500,000 Palo Verde Project, Series B, FGIC Insured, 5.75%, 07/01/17 ............... 2,437,550
3,820,000 Southern Transmission Project, Subordinated Lien, MBIA Insured, 5.50%,
07/01/20 ................................................................. 3,597,179
13,750,000 Sub-Crossover, Refunding, Southern Transmission Project, MBIA Insured,
5.75%, 07/01/21 .......................................................... 13,376,963
2,340,000 Transmission Project, Series B, FGIC Insured, 7.375%, 07/01/21 ............ 2,399,038
10,000,000 Transmission Project, Sub-Series A, MBIA Insured, 5.25%, 07/01/20 ......... 9,099,700
5,000,000 Southgate Public Financing Authority Revenue, Tax Allocation, Southgate
Redevelopment Project No. 1, AMBAC Insured, 5.875%, 09/01/24 ................ 4,941,850
3,750,000 Stanton RDA, Tax Allocation, Refunding, Stanton Community Development
Project, AMBAC Insured, 5.45%, 12/01/17 ..................................... 3,520,125
Stockton COP, AMBAC Insured,
6,500,000 Refunding, Wastewater System Project, 5.75%, 09/01/23 ..................... 6,316,830
4,000,000 Wastewater Facility, Pre-Refunded, 7.40%, 09/01/10 ........................ 4,310,960
1,640,000 Stockton-East Water District COP, Series A, AMBAC Insured, Pre-Refunded,
7.30%, 04/01/20 ............................................................. 1,818,219
4,260,000 Suisun City RDA, Tax Allocation, Refunding, Suisun City Redevelopment Project,
MBIA Insured, 5.625%, 10/01/13 .............................................. 4,151,796
800,000 Sulphur Springs USD, COP, Series 1991, AMBAC Insured, 7.20%, 02/01/21 ........ 850,040
5,485,000 Sunnyvale RDA, Parking Revenue, Refunding, AMBAC Insured, 6.50%, 10/01/22 .... 5,709,282
2,785,000 Sunnyvale RDA, Tax Allocation, Refunding, Central Core Project, AMBAC Insured,
6.50%, 10/01/22 ............................................................. 2,898,879
4,000,000 Susanville Public Financing Authority Revenue, Series A, AMBAC Insured, 6.30%,
09/01/17 .................................................................... 4,110,280
$ 1,335,000 Taft COP, Sewer Facilities Improvement Project, CGIC Insured, Pre-Refunded,
7.25%, 08/01/15 ............................................................. $ 1,443,816
Tahoe-Truckee Joint USD, FGIC Insured,
5,000,000 Series A, 6.00%, 09/01/17 ................................................. 5,031,000
3,620,000 Series B, 5.95%, 09/01/20 ................................................. 3,647,693
2,000,000 Tehachapi Water and Sewer Revenue, Refunding, MBIA Insured, 6.75%, 11/01/20 .. 2,160,380
3,390,000 Thousand Oaks RDA, Tax Allocation, Refunding, Thousand Oaks Blvd.
Redevelopment, MBIA Insured, 5.375%, 12/01/25 ............................... 3,116,190
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 ............................................... 4,167,320
Tracy CFD, Special Tax, Refunding, Senior Series A, FSA Insured,
4,160,000 5.65%, 09/01/15 ........................................................... 4,036,531
5,480,000 5.70%, 09/01/20 ........................................................... 5,298,228
Tracy COP,
1,630,000 Tracy Public Facilities Corp., FGIC Insured, 8.10%, 01/01/08 .............. 1,655,037
2,300,000 Wastewater Enterprise Financing, AMBAC Insured, 5.25%, 12/01/13 ........... 2,148,016
Tri-City Hospital District Revenue, MBIA Insured,
5,000,000 7.90%, 02/01/18 ........................................................... 5,324,500
2,350,000 6.00%, 02/01/22 ........................................................... 2,354,254
2,925,000 Truckee-Donner Water System Improvement Project, MBIA Insured, 6.75%,
11/15/21 .................................................................... 3,087,601
4,000,000 Tulare County COP, Capital Improvement Project, Refunding, Public Facilities
Corp., BIG Insured, Pre-Refunded, 8.10%, 11/01/07 ........................... 4,290,960
1,500,000 Tulare Sewer Revenue, Refunding, AMBAC Insured, 5.70%, 11/15/18 .............. 1,470,165
1,500,000 Turlock Auxiliary Organization Revenue COP, California State University,
Stanislaus Foundation, MBIA Insured, 5.875%, 06/01/22 ....................... 1,473,465
110,000 Turlock Irrigation District COP, Administrative Facilities Project, FGIC Insured,
Pre-Refunded, 6.75%, 01/01/13................................................ 114,925
7,125,000 Turlock Irrigation District Revenue, Refunding, Series A, MBIA Insured, 5.75%,
01/01/18 .................................................................... 7,072,844
6,200,000 Union City CRDA, Tax Allocation Revenue, Community Redevelopment Project,
AMBAC Insured, 5.75%, 10/01/22 .............................................. 6,027,640
University of California Revenue, Pre-Refunded,
2,800,000 Housing System, Group A-2, BIG Insured, 7.80%, 11/01/15 ................... 2,888,731
3,750,000 Multiple Purpose Project, Series A, AMBAC Insured, 6.75%, 09/01/23 ........ 4,078,275
1,000,000 Multiple Purpose Project, Series A, MBIA Insured, 6.90%, 09/01/15 ......... 1,054,550
1,500,000 Multiple Purpose Project, Series A, MBIA Insured, 7.00%, 09/01/23 ......... 1,583,505
Upland COP,
$ 3,985,000 Refunding, Police Building Project, AMBAC Insured, 6.60%, 08/01/16 ........ $ 4,231,912
2,385,000 Water System Improvement Project, FGIC Insured, 6.60%, 08/01/16 ........... 2,532,775
2,000,000 Water System Improvement Project, FGIC Insured, Pre-Refunded, 7.75%,
08/01/16 ................................................................. 2,046,460
1,355,000 Vacaville Public Financing Authority Revenue, Tax Allocation, Refunding, Vacaville
Redevelopment Project, MBIA Insured, 6.35%, 09/01/22 ........................ 1,388,780
Vallejo Revenue, Water Improvement Project,
12,500,000 Refunding, Series A, FSA Insured, 5.875%, 05/01/26 ........................ 12,403,125
4,855,000 Series B, FGIC Insured, Pre-Refunded, 6.50%, 11/01/14 ..................... 5,380,505
1,495,000 Vista USD, COP, MBIA Insured, 5.50%, 12/01/16 ................................ 1,431,313
2,200,000 Walnut Valley Water District COP, Badillo Grand Transmission Project, FGIC
Insured, 6.125%, 02/01/18.................................................... 2,219,382
1,800,000 Watsonville Solid Waste Revenue, MBIA Insured, 6.50%, 05/15/16 ............... 1,878,984
West Sacramento Financing Authority Revenue,
4,185,000 MBIA Insured, 6.25%, 09/01/16 ............................................. 4,292,094
4,500,000 Water System Improvement Project, FGIC Insured, 5.50%, 08/01/15 ........... 4,265,685
1,685,000 Water System Improvement Project, FGIC Insured, 5.50%, 08/01/24 ........... 1,569,038
3,340,000 West Sacramento RDA, Tax Allocation, West Sacramento Redevelopment Project,
MBIA Insured, 6.25%, 09/01/21 ............................................... 3,385,758
4,150,000 Whittier Health Facilities Revenue, Refunding, Presbyterian Intercommunity Hospital,
MBIA Insured, Pre-Refunded, 6.50%, 06/01/10 ................................. 4,333,264
2,340,000 Whittier Solid Waste Revenue, Refunding, Series A, AMBAC Insured, 5.375%,
08/01/14 .................................................................... 2,226,884
2,000,000 Whittier Water Revenue, Series A, AMBAC Insured, 5.625%, 06/01/17 ............ 1,943,640
1,285,000 William S. Hart Joint School Authority, Special Tax Revenue, Refunding, CFD,
CGIC Insured, 6.60%, 09/01/18 ............................................... 1,351,203
750,000 Windsor Joint Powers Financing Authority, Wastewater Revenue, Refunding,
Series A, AMBAC Insured, 6.125%, 12/15/12 .................................. 765,338
-------------
Total Bonds (Cost $1,524,864,763) ...................................... 1,577,542,849
Zero Coupon Bonds .4% -------------
28,405,000 San Bernardino County SFMR, Series A, GNMA Secured, ETM, (original accretion
rate 7.90%), 05/01/22 (Cost $4,683,814)...................................... 5,723,039
-------------
Total Long Term Investments (Cost $1,529,548,577)....................... 1,583,265,888
-------------
aShort Term Investments .4%
900,000 California Health Facility Financing Authority Revenue, ACES, St. Francis Memorial
Hospital, Series B, Daily VRDN and Put, 3.10%, 11/01/19 ..................... 900,000
200,000 California PCFA, PCR, Shell Oil Co. Project, Refunding, Series A, Daily VRDN
and Put, 3.00%, 10/01/06 .................................................... 200,000
$ 1,300,000 California Statewide CDA Revenue COP, Sutter Health Obligated Group, AMBAC
Insured, Daily VRDN and Put, 3.10%, 07/01/15 ................................ $ 1,300,000
5,200,000 Tustin 1915 Act, Reassessment District No. 95-2, Series A, Daily VRDN and Put,
3.10%, 09/02/13 ............................................................. 5,200,000
-------------
Total Short Term Investments (Cost $7,600,000).......................... 7,600,000
-------------
Total Investments (Cost $1,537,148,577) 99.0%...................... 1,590,865,888
Other Assets and Liabilities, Net 1.0% ............................ 16,222,483
-------------
Net Assets 100.0% ................................................. $1,607,088,371
=============
At June 30, 1996, the net unrealized appreciation based on the
cost of investments for income tax purposes of $1,537,268,900
was as follows:
Aggregate gross unrealized appreciation for all investments
in which there was an excess of value over tax cost ...................... $ 64,820,159
Aggregate gross unrealized depreciation for all investments
in which there was an excess of tax cost over value ...................... (11,223,171)
-------------
Net unrealized appreciation ................................................ $ 53,596,988
=============
</TABLE>
PORTFOLIO ABBREVIATIONS:
1915 Act - Improvement Bond Act of 1915
ACES - Adjustable Convertible Exempt Securities
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
HFA - Housing Finance Authority/Agency
HMR - Home Mortgage Revenue
ID - Improvement District
IDR - Industrial Development Revenue
MBIA - Municipal Bond Investors Assurance Corp.
MUD - Municipal Utility District
PCFA - Pollution Control Financing Authority
PCR - Pollution Control Revenue
RDA - Redevelopment Agency
SFMR - Single Family Mortgage Revenue
USD - Unified School District
aVariable rate demand notes (VRDNs) 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).
bSee Note 1(h) regarding securities purchased on a when-issued basis.
The accompanying notes are an integral part of these financial statements.
FRANKLIN CALIFORNIA TAX-FREE TRUST
Statement of Investments in Securities and Net Assets, June 30, 1996
<TABLE>
<CAPTION>
Face Value
Amount Franklin California Intermediate-Term Tax-Free Income Fund (Note 1)
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Long Term Investments 95.6%
ABAG Finance Authority of Nonprofit Corps. COP,
$ 480,000 5.50%, 06/01/03 ................................................................ $ 482,986
1,045,000 5.75%, 08/01/03 ................................................................ 1,061,919
1,255,000 Partner North County Health Project, 5.50%, 03/01/06 ........................... 1,223,713
ABAG Finance Corp. COP, ABAG XXVI,
100,000 Refunding, Series A, 5.90%, 06/01/02 ........................................... 102,141
100,000 Series B, 6.40%, 10/01/03 ...................................................... 104,276
Alameda County COP,
100,000 Capital Projects, Series 1992, 6.25%, 06/01/06 ................................. 103,521
395,000 Series 1994, 5.70%, 04/01/02 ................................................... 407,826
420,000 Series 1994, 5.80%, 04/01/03 ................................................... 435,590
440,000 Series 1994, 5.90%, 04/01/04 ................................................... 458,247
Atascadero USD, COP, Measure B, Capital Project, Series B,
220,000 5.20%, 08/01/03 ................................................................ 216,667
200,000 5.30%, 08/01/04 ................................................................ 196,642
Auburn COP, Refunding, Civic Center Project,
65,000 5.10%, 09/01/99 ................................................................ 64,808
65,000 5.30%, 09/01/00 ................................................................ 64,875
70,000 5.45%, 09/01/01 ................................................................ 70,150
75,000 5.60%, 09/01/02 ................................................................ 75,381
80,000 5.70%, 09/01/03 ................................................................ 80,459
80,000 5.75%, 09/01/04 ................................................................ 80,250
Bakersfield Central District Revenue, Development Agency, Tax Allocation, Refunding,
Downtown Bakersfield Redevelopment,
295,000 6.00%, 04/01/01 ................................................................ 299,702
310,000 6.10%, 04/01/02 ................................................................ 315,816
330,000 6.20%, 04/01/03 ................................................................ 337,059
350,000 6.30%, 04/01/04 ................................................................ 358,344
100,000 Bakersfield Hospital Revenue, Bakersfield Memorial Hospital Project, Series A,
5.70%, 01/01/00 ................................................................. 101,419
California Educational Facilities Authority Revenue, Refunding, Pooled College
and University Financing, Series B,
1,000,000 5.80%, 06/01/02 ................................................................ 1,013,900
1,105,000 5.90%, 06/01/03 ................................................................ 1,122,448
100,000 California Health Facilities Financing, San Diego Hospital Association, Series B,
MBIA Insured, 5.60%, 08/01/03 ................................................... 103,776
California State Public Works, Board Lease Revenue, Department of Corrections,
250,000 Calpatria State Prison, Imperial County, Series A, 6.125%, 09/01/04 ............ 263,200
1,000,000 Coalinga State Prison, Series B, MBIA Insured, 5.50%, 12/01/08 ................. 1,002,850
750,000 Refunding, State Prisons, Series A, 5.00%, 12/01/01 ............................ 754,200
California Statewide CDA Revenue COP,
$ 200,000 Refunding, Health Facilities, Barton Memorial Hospital, Series B, 5.70%, 12/01/00 $ 201,622
450,000 Refunding, Health Facilities, Barton Memorial Hospital, Series B, 6.40%, 12/01/05 454,797
865,000 St. Joseph Health System Group, 6.00%, 07/01/06 ................................ 914,253
585,000 California Statewide Communities Development Corp. COP, Pacific Homes, Series A,
5.50%, 04/01/04 ................................................................. 585,310
350,000 Campbell COP, Refunding, Civic Center Project, 5.60%, 10/01/03 ................... 354,746
200,000 Carson RDA Project, Area No. 1, Refunding, 6.10%, 10/01/02 ....................... 206,568
1,000,000 Central Joint Powers Health Financing Authority COP, Refunding,
Community Hospitals of Central California Project, 5.25.%, 02/01/04 ............. 982,800
100,000 Clovis COP, Water System Improvement Project, AMBAC Insured, 5.90%, 03/01/03 ..... 105,559
Coalinga Public Financing Authority Revenue,
455,000 Series A, MBIA Insured, 5.10%, 08/01/04 ........................................ 454,682
1,405,000 Series B, 6.00%, 09/15/03 ...................................................... 1,414,147
Colton GO, Joint USD, CFD, Special Tax, Southridge Village, Phase III, Refunding,
FSA Insured,
515,000 5.65%, 09/01/09 ................................................................ 515,427
550,000 5.75%, 09/01/10 ................................................................ 550,479
Commerce Joint Powers Financing Authority, Water Facilities, Lease Revenue,
Refunding, Series A,
340,000 5.50%, 10/01/02 ................................................................ 341,391
360,000 5.625%, 10/01/03 ............................................................... 360,918
470,000 5.75%, 10/01/04 ................................................................ 468,426
Compton Sewer Revenue,
120,000 5.40%, 07/01/98 ................................................................ 121,194
125,000 5.60%, 07/01/99 ................................................................ 126,956
130,000 5.70%, 07/01/00 ................................................................ 132,317
140,000 5.80%, 07/01/01 ................................................................ 143,158
150,000 5.90%, 07/01/02 ................................................................ 153,951
155,000 6.00%, 07/01/03 ................................................................ 159,538
165,000 6.10%, 07/01/04 ................................................................ 169,615
175,000 6.20%, 07/01/05 ................................................................ 180,345
185,000 6.30%, 07/01/06 ................................................................ 190,626
Concord RDA, Tax Allocation, Central Concord Redevelopment Project, Refunding,
Sub-Series A,
625,000 5.50%, 07/01/02 ................................................................ 618,719
655,000 5.625%, 07/01/03 ............................................................... 648,483
500,000 Contra Costa County MFHR, Byron Park Project, Series C, 6.00%, 07/20/03 .......... 512,665
Danville Financing Authority Revenue, Sycamore Valley, Reassessment District No. 93-2,
$ 315,000 5.40%, 09/02/01 ................................................................ $ 313,853
490,000 5.60%, 09/02/02 ................................................................ 490,461
235,000 5.70%, 09/02/03 ................................................................ 235,251
960,000 5.80%, 09/02/04 ................................................................ 961,142
100,000 Desert Hospital District Revenue COP, Desert Hospital Corp., CGIC Insured,
6.25%, 07/01/03 ................................................................. 106,936
920,000 Encinitas Union School District COP, Measure B, Capital Projects, 5.20%, 09/01/03 916,127
Fontana COP, Refunding, Police Facilities Project, Series 1993,
330,000 5.00%, 04/01/01 ................................................................ 322,760
350,000 5.00%, 04/01/02 ................................................................ 339,273
365,000 5.10%, 04/01/03 ................................................................ 352,251
1,150,000 Foster City Public Financing Authority Revenue, Community Development Project,
Series A, 5.60%, 09/01/03 ....................................................... 1,167,503
1,000,000 Fresno Joint Powers Financing Authority, Local Agency Revenue, Refunding,
Series A, 6.20%, 09/02/03 ....................................................... 999,320
300,000 Garden Grove COP, Bahia Village/Emerald Isle Project, FSA Insured, 5.20%, 08/01/03 304,239
Garden Grove GO, CDA, Tax Allocation, Refunding, Garden Grove Community
Project,
1,000,000 5.00%, 10/01/99 ................................................................ 998,140
1,425,000 5.40%, 10/01/04 ................................................................ 1,409,952
Glendale Parking Facilities, Joint Powers Authority Revenue, Series A,
215,000 5.10%, 03/01/01 ................................................................ 210,023
255,000 5.20%, 03/01/02 ................................................................ 248,044
125,000 5.30%, 03/01/03 ................................................................ 121,108
750,000 Goleta Water District Revenue COP, Refunding, Goleta Reclamation Project,
FGIC Insured, 5.50%, 12/01/08 ................................................... 752,138
3,935,000 Hesperia Public Financing Authority Revenue, Series A, 5.80%, 10/01/03 ........... 3,955,344
Hollister RDA, Tax Allocation, Hollister Community Development Project, Series 1994,
525,000 5.35%, 10/01/03 ................................................................ 506,326
550,000 5.45%, 10/01/04 ................................................................ 528,424
585,000 5.55%, 10/01/05 ................................................................ 560,067
Imperial County Local Transportation Authority, Sales Tax Revenue, Series 1993,
490,000 5.50%, 05/01/04 ................................................................ 478,108
515,000 5.50%, 05/01/05 ................................................................ 497,840
1,500,000 Lake Elsinore Public Financing Authority, Tax Allocation Revenue, Lake Elsinore
Redevelopment Project, Series A, CGIC Insured, 5.40%, 09/15/08 .................. 1,465,920
560,000 La Quinta RDA, Tax Allocation, Housing Redevelopment Project, Areas No. 1 and 2,
MBIA Insured, 5.40%, 09/01/07 ................................................... 561,814
La Palma Community Development Commission, Tax Allocation, Refunding,
La Palma Community Development Project No. 1,
$ 125,000 5.20%, 06/01/00 ................................................................ $ 121,721
130,000 5.40%, 06/01/01 ................................................................ 126,394
135,000 5.50%, 06/01/02 ................................................................ 130,631
145,000 5.60%, 06/01/03 ................................................................ 139,687
150,000 5.70%, 06/01/04 ................................................................ 143,909
160,000 5.80%, 06/01/05 ................................................................ 152,918
Lancaster RDA, Tax Allocation, Refunding,
35,000 Central Business District Redevelopment, 5.00%, 08/01/98 ....................... 34,903
35,000 Central Business District Redevelopment, 5.125%, 08/01/99 ...................... 34,787
35,000 Central Business District Redevelopment, 5.25%, 08/01/00 ....................... 34,632
40,000 Central Business District Redevelopment, 5.375%, 08/01/01 ...................... 39,449
40,000 Central Business District Redevelopment, 5.50%, 08/01/02 ....................... 39,310
45,000 Central Business District Redevelopment, 5.60%, 08/01/03 ....................... 44,124
45,000 Central Business District Redevelopment, 5.70%, 08/01/04 ....................... 44,031
50,000 Central Business District Redevelopment, 5.70%, 08/01/05 ....................... 48,483
50,000 Fox Field Redevelopment Project Area, 5.00%, 08/01/98 .......................... 49,862
55,000 Fox Field Redevelopment Project Area, 5.125%, 08/01/99 ......................... 54,666
55,000 Fox Field Redevelopment Project Area, 5.25%, 08/01/00 .......................... 54,422
60,000 Fox Field Redevelopment Project Area, 5.375%, 08/01/01 ......................... 59,173
65,000 Fox Field Redevelopment Project Area, 5.50%, 08/01/02 .......................... 63,879
65,000 Fox Field Redevelopment Project Area, 5.60%, 08/01/03 .......................... 63,734
70,000 Fox Field Redevelopment Project Area, 5.70%, 08/01/04 .......................... 68,492
75,000 Fox Field Redevelopment Project Area, 5.70%, 08/01/05 .......................... 72,725
990,000 Lemon Grove MFHR, Refunding, Hillside Terrace Apartments, 5.375%, 01/01/19 ....... 1,003,167
Los Angeles County COP, Insured Health Clinic, Series E,
40,000 4.60%, 12/01/99 ................................................................ 39,514
45,000 4.75%, 12/01/00 ................................................................ 44,226
45,000 4.85%, 12/01/01 ................................................................ 43,973
45,000 4.95%, 12/01/02 ................................................................ 43,817
Los Angeles County Transport Commission COP, Series B,
100,000 5.90%, 07/01/00 ................................................................ 103,624
200,000 6.00%, 07/01/01 ................................................................ 208,832
2,000,000 Los Angeles County Wastewater Systems Revenue, Refunding, Series D, FGIC
Insured, 5.375%, 11/01/06 ....................................................... 2,002,000
100,000 Los Angeles Judgement Obligation Bonds, Series A, 5.00%, 08/01/01 ................ 101,382
Los Angeles MFHR, Refunding, Series G, FSA Insured,
185,000 4.90%, 01/01/02 ................................................................ 183,944
235,000 4.90%, 07/01/02 ................................................................ 233,555
205,000 5.00%, 01/01/03 ................................................................ 203,653
Los Angeles MFHR, Refunding, Series G, FSA Insured, (cont.)
$ 245,000 5.00%, 07/01/03 ................................................................ $ 243,287
220,000 5.10%, 01/01/04 ................................................................ 218,379
260,000 5.10%, 07/01/04 ................................................................ 257,980
600,000 Los Angeles Municipal Improvement Corp., Lease Revenue, Refunding, Central Library
Project, Series B, 4.875%, 06/01/01 ............................................. 590,082
1,000,000 Los Angeles USD, COP, Refunding, Multiple Property Project, FSA Insured, 5.00%,
11/01/04 ........................................................................ 989,200
565,000 Lynwood Public Financing Authority Revenue, Water Systems Improvement Project,
6.15%, 06/01/08 ................................................................. 562,604
515,000 Madera COP, Refunding, Madera Community Hospital, 5.10%, 03/01/03 ................ 502,480
Madera RDA, Tax Revenue, Refunding, Madera Redevelopment Project, CGIC Insured,
175,000 5.15%, 09/01/02 ................................................................ 177,196
185,000 5.25%, 09/01/03 ................................................................ 187,631
195,000 5.35%, 09/01/04 ................................................................ 198,075
540,000 Merced Irrigation District COP, Water Facilities Project, 6.125%, 11/01/03 ....... 565,045
715,000 Merced Public Financing Authority, Local Agency Revenue, Tax Allocation, Series A,
5.00%, 12/01/04 ................................................................. 683,726
MidPeninsula Regional Open Space District COP, Special District Association
Finance Corp., Series 1993,
510,000 5.10%, 09/01/02 ................................................................ 507,567
530,000 5.20%, 09/01/03 ................................................................ 527,143
700,000 Modesto Irrigation District, Financing Authority Revenue, Domestic Water Project,
Series C, AMBAC Insured, 5.50%, 09/01/08 ........................................ 702,254
100,000 Mojave GO, Water Agency, Improvement, District M, Morongo Basin, ETM, 6.20%,
09/01/01 ........................................................................ 106,560
100,000 Morgan Hill RDA, Tax Allocation, Refunding, 5.70%, 03/01/01 ...................... 101,075
100,000 Mount Diablo Hospital District Revenue, Series A, AMBAC Insured, 5.10%, 12/01/03 . 100,546
Mountain View, Shoreline Regional Park, Community Tax Allocation, Series A,
335,000 5.00%, 08/01/02 ................................................................ 327,781
785,000 5.10%, 08/01/03 ................................................................ 765,862
540,000 5.20%, 08/01/04 ................................................................ 525,409
500,000 New Haven USD, COP, Refunding, 5.30%, 07/01/01 ................................... 508,320
300,000 Newark USD, COP, Crossover Refunding, 5.75%, 09/01/02 ............................ 301,698
500,000 North City West School Facilities Financing Authority, Special Tax, Refunding,
Series B, CGIC Insured, 5.625%, 09/01/08 ........................................ 498,430
100,000 Northern California Public Power Agency Revenue, Refunding, Geothermal Project
No. 3, Series A, 7.00%, 07/01/07 ................................................ 101,500
1,745,000 Oakland USD, Alameda County COP, Refunding, 5.00%, 09/15/99 ...................... 1,731,145
1,000,000 Ontario Redevelopment Financing Authority Local Agency Revenue, Community Facility,
AD No.1, Senior Lien, Series A, CGIC Insured, 5.60%, 09/02/03.................... 1,038,110
$ 800,000 Orange County Development Agency, Tax Allocation, Refunding, Santa Ana Heights,
Project Area, 5.90%, 09/01/04 ................................................... $ 788,744
Orange County Local Transportation Authority, Sales Tax Revenues,
500,000 First Senior Measure M, 6.00%, 02/15/06 ........................................ 524,150
1,000,000 Second Senior Measure M, 4.70%, 02/15/05 ....................................... 954,870
500,000 Orange County MFHR, Villa Santiago Rehabilitation Project, FNMA Secured,
5.60%, 10/01/27 ................................................................. 501,585
1,500,000 Orange County COP, Recovery, Refunding, Series A, MBIA Insured, 6.00%, 07/01/08 .. 1,557,195
1,715,000 Paramount RDA, Tax Allocation, Refunding, Redevelopment Project, Area No. 1,
6.05%, 08/01/05 ................................................................. 1,777,872
Paso Robles Union School District COP,
1,635,000 5.75%, 08/01/03 ................................................................ 1,680,780
300,000 Measure D, Capital Projects, Phase III, 5.75%, 08/01/02 ........................ 306,609
Pismo Beach Public Financing Authority Revenue, Series 1993,
45,000 6.25%, 09/15/01 ................................................................ 45,648
50,000 6.40%, 09/15/02 ................................................................ 50,771
50,000 6.50%, 09/15/03 ................................................................ 50,769
55,000 6.55%, 09/15/04 ................................................................ 55,789
1,425,000 Pleasant Hill RDA, RMR, Refunding, 5.40%, 02/01/05 ............................... 1,441,502
Rialto RDA, Tax Allocation, Industrial Redevelopment, Refunding, Sub-Areas A & B,
Series A,
270,000 5.40%, 09/01/02 ................................................................ 268,164
280,000 5.50%, 09/01/03 ................................................................ 277,855
Riverside County Asset Leasing Corp., Leasehold Revenue, Riverside County
Hospital Project, Series A,
200,000 5.90%, 06/01/02 ................................................................ 205,500
200,000 6.00%, 06/01/04 ................................................................ 205,686
1,000,000 Sacramento MUD, Electric Revenue, Series E, 5.25%, 05/15/03 ...................... 1,005,650
San Bernardino City USD, COP, Refunding, Series 1994,
1,030,000 4.625%, 05/01/02 ............................................................... 983,032
1,185,000 4.75%, 05/01/03 ................................................................ 1,128,404
2,000,000 San Bernardino County COP, Refunding, Medical Center Financing Project, 6.00%,
08/01/09 ........................................................................ 1,992,700
150,000 San Bernardino County Mortgage Revenue, Refunding, Don Miguel Apartments Project,
MBIA Insured, 6.00%, 09/01/03 ................................................... 154,556
San Clemente 1915 Act, Refunding, AD No. 85-1,
415,000 5.00%, 09/02/02 ................................................................ 409,352
435,000 5.10%, 09/02/03 ................................................................ 428,310
460,000 5.20%, 09/02/04 ................................................................ 452,166
San Diego County COP, Children's Center Project,
100,000 5.50%, 04/01/99 ................................................................ 100,892
100,000 6.00%, 10/01/02 ................................................................ 101,106
$ 415,000 San Diego Mortgage Revenue, Refunding, Mariners Cove, Series B-1, 5.125%,
09/01/03 ........................................................................ $ 409,713
100,000 San Diego Port Facilities Revenue, Refunding, National Steel & Shipbuilding Co.,
6.60%, 12/01/02 ................................................................. 102,204
San Francisco City and County RDA, Mortgage Revenue,
300,000 Hotel Tax Revenue, CGIC Insured, 5.80%, 07/01/01 ............................... 314,400
245,000 Hotel Tax Revenue, CGIC Insured, 5.90%, 07/01/02 ............................... 258,762
40,000 Refunding, Series A, MBIA Insured, 6.125%, 07/01/02 ............................ 39,721
750,000 San Gorgonio Memorial Health Care District, Health Facility Revenue, Insured,
6.375%, 06/01/08 ................................................................ 770,303
400,000 San Joaquin County COP, General Hospital Project, 5.90%, 09/01/03 ................ 410,280
300,000 San Jose Financing Authority Revenue, Refunding, Convention Center Project,
Series C, 5.75%, 09/01/03 ....................................................... 307,752
600,000 San Juan USD, COP, Gold River Elementary School Project, 5.65%, 04/01/03 ......... 600,366
San Ramon COP, Capital Improvements Project,
85,000 5.20%, 03/01/01 ................................................................ 85,869
90,000 5.30%, 03/01/02 ................................................................ 91,089
95,000 5.40%, 03/01/03 ................................................................ 96,318
100,000 5.50%, 03/01/04 ................................................................ 101,552
105,000 5.60%, 03/01/05 ................................................................ 106,791
985,000 Santa Barbara RDA, Tax Allocation, Central City Redevelopment Project, 6.00%,
03/01/03 ........................................................................ 998,376
100,000 Santa Monica Parking Authority, Lease Revenue, Refunding, 6.00%, 07/01/03 ........ 104,343
Sebastopol COP, Refunding, Series 1994,
200,000 5.50%, 06/01/03 ................................................................ 199,420
215,000 5.60%, 06/01/04 ................................................................ 214,308
240,000 5.70%, 06/01/05 ................................................................ 239,158
Selma Public Financing Authority Revenue, Series A, MBIA Insured,
100,000 5.25%, 09/15/02 ................................................................ 101,458
115,000 5.50%, 09/15/04 ................................................................ 116,883
120,000 5.60%, 09/15/05 ................................................................ 121,961
125,000 5.65%, 09/15/06 ................................................................ 126,804
135,000 5.70%, 09/15/07 ................................................................ 136,693
140,000 5.70%, 09/15/08 ................................................................ 141,232
150,000 5.75%, 09/15/09 ................................................................ 151,040
155,000 5.75%, 09/15/10 ................................................................ 155,786
100,000 Shasta Joint Powers Financing Authority Lease Revenue, Courthouse Improvement
Project, Series A, 5.80%, 06/01/00 .............................................. 102,270
50,000 Solano Beach COP, City Hall Project, 5.80%, 10/01/02 ............................. 51,658
20,000 Solano Beach COP, Justice Facility and Public Building Project, Refunding, 5.10%,
10/01/99 ........................................................................ 20,147
South Gate Public Financing Authority Water Revenue, Refunding, Series A,
FGIC Insured,
$ 995,000 5.35%, 10/01/07 ................................................................ $ 989,926
1,040,000 5.45%, 10/01/08 ................................................................ 1,034,394
South San Francisco, Capital Improvements Financing Authority Revenue, Refunding,
South San Francisco Conference Center,
195,000 5.70%, 09/01/02 ................................................................ 196,593
205,000 5.80%, 09/01/03 ................................................................ 206,892
215,000 5.90%, 09/01/04 ................................................................ 217,195
100,000 Southern California Rapid Transit District Revenue, Special Benefit, AD No. A2,
5.80%, 09/01/01 ................................................................. 103,225
Sunline Transport Agency COP, Transport Finance Corp., Series B,
450,000 5.50%, 07/01/03 ................................................................ 445,631
445,000 5.75%, 07/01/06 ................................................................ 439,349
100,000 Susanville Public Financing Authority Revenue, Series A, AMBAC Insured, 5.90%,
09/01/02 ........................................................................ 105,200
Tahoe City PUD, COP, Capital Facilities Project, Series B,
290,000 6.05%, 06/01/01 ................................................................ 296,641
835,000 6.15%, 06/01/02 ................................................................ 857,361
545,000 6.30%, 06/01/04 ................................................................ 561,710
Tehachapi Cummings County Water District Revenue COP, Capital Improvement
Project, MBIA Insured,
280,000 5.50%, 08/01/04 ................................................................ 288,072
300,000 5.60%, 08/01/05 ................................................................ 308,616
320,000 5.75%, 08/01/06 ................................................................ 330,195
600,000 Temecula RDA Revenue, Tax Allocation, Temecula Redevelopment Project No. 1,
Series A, 5.40%, 02/01/04 ....................................................... 592,278
370,000 Temecula Valley USD, Series E, CGIC Insured, 5.65%, 09/01/07 ..................... 378,895
Templeton USD, COP, Measure C, Capital Projects, Series A, Phase III,
375,000 5.00%, 03/01/03 ................................................................ 369,968
580,000 5.00%, 03/01/05 ................................................................ 562,513
100,000 Torrance USD, COP, Series A, 5.85%, 10/01/99 ..................................... 100,869
200,000 Travis USD, COP, Foxboro Elementary School Construction Project, 6.30%, 09/01/02 . 210,164
Trinity County PUD, COP, Refunding, Electric District Facilities, Series 1993,
340,000 5.80%, 04/01/01 ................................................................ 342,481
360,000 5.90%, 04/01/02 ................................................................ 363,095
380,000 6.00%, 04/01/03 ................................................................ 383,727
100,000 Tuolumne County COP, Multiple Facilities Project, 5.80%, 06/01/98 ................ 100,728
Ventura USD, COP, Series A,
305,000 5.90%, 04/01/04 ................................................................ 309,876
320,000 6.00%, 04/01/05 ................................................................ 325,101
Ventura USD, COP, Series A, (cont.)
$ 340,000 6.10%, 04/01/06 ................................................................ $ 346,347
365,000 6.20%, 04/01/07 ................................................................ 370,773
385,000 6.30%, 04/01/08 ................................................................ 391,071
410,000 6.40%, 04/01/09 ................................................................ 416,441
Watsonville RDA, Tax Allocation, Watsonville Redevelopment Project, Series 1993,
510,000 6.00%, 08/01/02 ................................................................ 510,081
540,000 6.10%, 08/01/03 ................................................................ 540,085
-------------
Total Long Term Investments (Cost $96,031,434) ............................. 96,747,732
-------------
aShort Term Investments 1.5%
Irvine Ranch Water District, Daily VRDN and Put,
600,000 Consolidated District Nos. 105, 140, 240, and 250, 3.30%, 01/01/21 ............. 600,000
900,000 Consolidated District Nos. 105, 250, and 290, 3.30%, 08/01/016.................. 900,000
-------------
Total Short Term Investments (Cost $1,500,000) ............................. 1,500,000
-------------
Total Investments (Cost $97,531,434) 97.1% ............................ 98,247,732
Other Assets and Liabilities, Net 2.9% ................................ 2,951,106
-------------
Net Assets 100.0% ..................................................... $101,198,838
=============
At June 30, 1996, the net unrealized appreciation based on the
cost of investments for income tax purposes of $ 97,531,434 was
as follows:
Aggregate gross unrealized appreciation for all investments in
which there was an excess of value over tax cost.............................. $ 1,195,326
Aggregate gross unrealized depreciation for all investments in
which there was an excess of tax cost over value ............................. (479,028)
-------------
Net unrealized appreciation..................................................... $716,298
=============
</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
PUD - Public Utility District
RDA - Redevelopment Agency
RMR - Residential Mortgage Revenue
USD - Unified School District
aVariable rate demand notes (VRDNs) 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, June 30, 1996
<TABLE>
<CAPTION>
Face Value
Amount Franklin California Tax-Exempt Money Fund (Note 1)
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Investments 104.2%
$ 528,000 aABAG Revenue, Pooled Projects, Series 1987, Weekly VRDN and Put, 3.10%,
04/01/97 ...................................................................... $ 528,000
1,000,000 aAlameda County MFMR, Refunding, Series A, Weekly VRDN and Put, 3.10%, 05/15/15 . 1,000,000
1,355,000 Alameda County Transportation Authority, Sales Tax Revenue, FGIC Insured,
4.75%, 05/01/97 ............................................................... 1,365,464
1,500,000 aAnaheim COP, 1993 Partnership Project, Refunding, AMBAC Insured, Weekly
VRDN and Put, 3.10%, 08/01/19 ................................................. 1,500,000
5,600,000 aAnaheim COP, Police Facilities Refinancing Project, Refunding, AMBAC Insured,
Weekly VRDN and Put, 3.10%, 08/01/08 .......................................... 5,600,000
2,700,000 aBig Bear Lake Industrial Revenue, Southwest Gas Corp. Project, Series A, Weekly
VRDN and Put, 3.30%, 12/01/28 ................................................. 2,700,000
1,400,000 aBurbank RDA, MFR, Issue A, Weekly VRDN and Put, 3.00%, 11/01/10 ................ 1,400,000
2,770,000 aButte County Housing Authority MFR, Pine Tree Apartments Project, Weekly VRDN
and Put, 3.35%, 12/01/10 ...................................................... 2,770,000
aCalifornia Health Facilities Financing Authority Revenue,
3,600,000 Catholic Health Care, Series B, MBIA Insured, Weekly VRDN and Put,
3.00%, 07/01/16 ........................................................... 3,600,000
10,500,000 Catholic Health Care, Series C, MBIA Insured, Weekly VRDN and Put,
3.00%, 07/01/12 ........................................................... 10,500,000
3,950,000 Catholic Health Care, Series C, MBIA Insured, Weekly VRDN and Put,
3.00%, 07/01/20 ........................................................... 3,950,000
1,500,000 Catholic Health Care, Series D, MBIA Insured, Weekly VRDN and Put,
3.00%, 07/01/21 ........................................................... 1,500,000
2,500,000 Children's Hospital, MBIA Insured, Weekly VRDN and Put, 3.00%, 11/01/21 .... 2,500,000
3,000,000 Pool Program, Weekly VRDN and Put, 2.80%, 09/01/20 ......................... 3,000,000
9,800,000 Refunding, Catholic West Facility, Series B, MBIA Insured, Weekly VRDN and
Put, 3.00%, 07/01/05 ...................................................... 9,800,000
2,100,000 Refunding, Catholic West Facility, Series D, MBIA Insured, Weekly VRDN and
Put, 3.00%, 07/01/18 ...................................................... 2,100,000
2,000,000 Refunding, St. Joseph Health System, Series B, Daily VRDN and Put, 3.00%,
07/01/13 .................................................................. 2,000,000
2,100,000 Santa Barbara Cottage Hospital, Series B, Weekly VRDN and Put, 3.00%, 09/01/05 2,100,000
1,300,000 St. Francis Medical Center, Series F, MBIA Insured, Weekly VRDN and Put,
3.00%, 07/01/10 ........................................................... 1,300,000
3,020,000 St. Joseph Health System, Series A, Daily VRDN and Put, 3.00%, 07/01/13 .... 3,020,000
2,300,000 St. Joseph Health System, Series B, Daily VRDN and Put, 3.00%, 07/01/09 .... 2,300,000
3,100,000 Sutter Health, Series A, Daily VRDN and Put, 3.10%, 03/01/20 ............... 3,100,000
4,450,000 aCalifornia Higher Education Loan Authority, Inc., Student Loan Revenue, Refunding,
Series E-1, Weekly VRDN and Put, 3.40%, 12/01/22 .............................. 4,450,000
California PCFA, PCR,
$ 4,700,000 a Occidental Geo/Santa Fe Geothermal, Monthly VRDN, Weekly Put, 3.40%,
09/01/13 .................................................................. $ 4,700,000
2,505,000 Pacific Gas & Electric Corp., TECP, 3.35%, 08/08/96 ........................ 2,505,000
1,900,000 a Refunding, Shell Oil Co. Project, Series A, Daily VRDN and Put, 3.00%, 10/01/06 1,900,000
800,000 a Refunding, Shell Oil Co. Project, Series A, Daily VRDN and Put, 3.00%, 10/01/07 800,000
1,300,000 a Refunding, Shell Oil Co. Project, Series A, Daily VRDN and Put, 3.00%, 10/01/08 1,300,000
4,500,000 a Refunding, Shell Oil Co. Project, Series A, Daily VRDN and Put, 3.00%, 10/01/09 4,500,000
2,500,000 a Refunding, Shell Oil Co. Project, Series A, Daily VRDN and Put, 3.00%, 10/01/10 2,500,000
3,100,000 a Refunding, Shell Oil Co. Project, Series B, Daily VRDN and Put, 3.00%, 10/01/11 3,100,000
2,600,000 a Refunding, Shell Oil Co. Project, Series C, Daily VRDN and Put, 3.00%, 11/01/00 2,600,000
1,000,000 a Reynolds Metals Co. Project, Weekly VRDN and Put, 3.15%, 12/01/15 .......... 1,000,000
7,500,000 a Southern California Edison Co., Series A, Daily VRDN and Put, 3.45%, 02/28/08 7,500,000
1,400,000 a Southern California Edison Co., Series C, Daily VRDN and Put, 3.45%, 02/28/08 1,400,000
100,000 a Southern California Edison Co., Series D, Daily VRDN and Put, 3.45%, 02/28/08 100,000
aCalifornia PCFA, Resource Recovery Revenue, Daily VRDN and Put,
9,500,000 Atlantic Richfield Co. Project, Series A, 3.75%, 12/01/24 .................. 9,500,000
4,900,000 Burney Forest Products Project, Series A, 3.65%, 09/01/20 .................. 4,900,000
2,200,000 OMS Equity, Stanislaus Project, 3.70%, 12/01/17 ............................ 2,200,000
aCalifornia PCFA, Solid Waste Disposal Revenue, Series A, Weekly VRDN and Put,
1,200,000 Colmac Energy Project, 3.30%, 12/01/16 ..................................... 1,200,000
3,400,000 Shell Oil Co. Martinez Project, 3.70%, 10/01/24 ............................ 3,400,000
19,500,000 aCalifornia Public Capital Improvements Financing Authority Revenue, Pooled Project,
Series C, Quarterly VRDN and Put, 3.40%, 06/01/28 ............................. 19,500,000
5,000,000 bCalifornia School Cash Reserve Program Authority, Pooled Project, Series A,
4.75%, 07/02/97 ............................................................... 5,043,200
3,000,000 aCalifornia State Economic Development Financing Authority Revenue, Refunding,
KQED, Inc. Project, Weekly VRDN and Put, 3.10%, 04/01/20 ...................... 3,000,000
aCalifornia Statewide Communities Development Authority Revenue, COP, Refunding,
9,005,000 Apartment Development Revenue, Subseries A-6, Weekly VRDN and Put,
3.25%, 05/15/25 ........................................................... 9,005,000
2,400,000 House Ear Institution, Daily VRDN and Put, 3.35%, 12/01/18 ................. 2,400,000
2,800,000 St. Joseph Health Systems, Weekly VRDN and Put, 3.00%, 07/01/08 ............ 2,800,000
aCalifornia Statewide Communities Development Corp. Revenue, Series C, Weekly
VRDN and Put,
2,550,000 American Kleaner, 3.25%, 12/01/19 .......................................... 2,550,000
1,700,000 Karcher Property Project, 3.25%, 12/01/19 .................................. 1,700,000
800,000 aCarlsbad MFHR, Refunding, La Costa Apartments Project, Series A, Weekly VRDN
and Put, 3.05%, 06/01/11 ...................................................... 800,000
2,470,000 aChico MFMR, Webb Homes Project, Monthly VRDN, Weekly Put, 3.65%, 01/01/10 ...... 2,470,000
aConcord MFMR, Weekly VRDN and Put,
$ 8,500,000 Arcadian Facility, Series A, 3.10%, 07/15/18 ............................... $ 8,500,000
500,000 Bel Air Apartments, Issue A, 3.20%, 12/01/16 ............................... 500,000
4,270,000 aContra Costa County Housing Authority, MFMR, Lakeshore Facility, Series A,
FNMA Secured, Weekly VRDN and Put, 3.10%, 11/15/12 ............................ 4,270,000
aDuarte RDA, COP, Weekly VRDN and Put,
1,000,000 Johnson Duarte Project, Series B, 3.20%, 12/01/14 .......................... 1,000,000
400,000 Piken Duarte Partnership, Series A, 3.20%, 12/01/14 ........................ 400,000
East Bay MUD, TECP,
1,200,000 3.55%, 07/09/96 ............................................................ 1,200,000
8,000,000 3.55%, 08/08/96 ............................................................ 8,000,000
700,000 aEscondido MFHR, Morning View Terrace, Series A, Weekly VRDN and Put,
2.90%, 02/15/07 ............................................................... 700,000
1,000,000 aFontana MFMR, Oakcrest, Series A, Weekly VRDN and Put, 3.10%, 07/15/18 ......... 1,000,000
aFoothill/Eastern Transportation Corridor Agency, California Toll Road Revenue,
Weekly VRDN and Put,
15,400,000 Series B, 3.00%, 01/02/35 .................................................. 15,400,000
5,000,000 Series C, 3.10%, 01/02/35 .................................................. 5,000,000
10,000,000 Series E, 3.20%, 01/02/35 .................................................. 10,000,000
1,000,000 aFresno MFHR, Refunding, Heron Pointe Apartments, Series A, Weekly VRDN and
Put, 3.20%, 06/01/07 .......................................................... 1,000,000
1,180,000 aIndependent Cities Lease Finance Authority Revenue, Pooled Projects, Weekly
VRDN and Put, 3.20%, 06/01/98 ................................................. 1,180,000
9,400,000 aIrvine 1915 Act, AD 95-12, Series A, Daily VRDN and Put, 3.30%, 01/01/21 ....... 9,400,000
aIrvine Ranch Water District, Daily VRDN and Put,
10,300,000 Consolidated District Nos. 105, 140, 240, and 250, 3.30%, 01/01/21 ......... 10,300,000
10,350,000 COP, Capital Improvement Project, 3.50%, 08/01/16 .......................... 10,350,000
900,000 DATES, Consolidated Bonds, Series C, 3.30%, 10/01/10 ....................... 900,000
1,700,000 ID No.182, Series A, 3.45%, 05/01/09 ....................................... 1,700,000
1,700,000 Refunding, Consolidated Bonds, Series A, 3.45%, 11/15/13 ................... 1,700,000
900,000 Refunding, DATES, Consolidated Bonds, Series B, 3.45%, 10/01/04 ............ 900,000
500,000 Refunding, District Nos. 102, 103, 105, and 106, 3.30%, 09/01/06 ........... 500,000
aKern County COP, Kern Public Facilities Project, Weekly VRDN and Put,
2,300,000 Series A, 3.00%, 08/01/06 .................................................. 2,300,000
400,000 Series C, 3.00%, 08/01/06 .................................................. 400,000
500,000 Series D, 3.00%, 08/01/06 .................................................. 500,000
900,000 aLancaster RDA, MFHR, Westwood Park Apartments, Series 1985-K, Weekly
VRDN and Put, 2.90%, 12/01/07 ................................................. 900,000
400,000 aLos Angeles County COP, ACES, Los Angeles County Museum of Art, Series B,
Weekly VRDN and Put, 3.40%, 11/01/05 .......................................... 400,000
aLos Angeles County Housing Authority, MFHR, Weekly VRDN and Put,
$ 1,600,000 Harbor Cove Project, Series E, 3.20%, 10/01/06 ............................. $ 1,600,000
4,500,000 Sand Canyon Ranch Project, Series F, 3.00%, 11/01/06 ....................... 4,500,000
100,000 aLos Angeles County IDA, IDR, Weekly VRDN and Put, 3.05%, 10/01/04 .............. 100,000
6,000,000 aLos Angeles County Metropolitan Transportation Authority Revenue, General-Union
Station Gateway, Series A, FSA Insured, Weekly VRDN and Put, 3.15%, 07/01/25 .. 6,000,000
aLos Angeles County, Pension Obligation, Refunding, AMBAC Insured, Weekly
VRDN and Put,
3,600,000 Series B, 3.15%, 06/30/07 .................................................. 3,600,000
1,500,000 Series C, 3.15 %, 06/03/07 ................................................. 1,500,000
Los Angeles County TRAN,
13,600,000 4.50%, 07/01/96 ............................................................ 13,600,541
25,000,000 b Series A, 4.50%, 06/30/97 .................................................. 25,156,000
Los Angeles County Transport Commission, Sales Tax Revenue,
1,200,000 a Refunding, Series A, FGIC Insured, Weekly VRDN and Put, 3.10%, 07/01/12 .... 1,200,000
1,000,000 Series A, 7.50%, 07/01/96 .................................................. 1,020,193
5,625,000 Series A, 7.60%, 07/01/96 .................................................. 5,738,668
8,000,000 bLos Angeles County USD, TRAN, Series A, 4.50%, 06/30/97 ........................ 8,053,760
aLos Angeles CRDA, COP, Weekly VRDN and Put,
1,000,000 Baldwin Hill Park, 3.25%, 12/01/14 ......................................... 1,000,000
400,000 Broading Spring Center Program, 3.20%, 07/01/12 ............................ 400,000
aLos Angeles MFHR, Weekly VRDN and Put,
3,400,000 Casden Project, Series K, 3.10%, 07/01/10 .................................. 3,400,000
1,200,000 Lucas Studios Project, Series D, 3.20%, 12/01/21 ........................... 1,200,000
1,100,000 Masselin Manor, 3.05%, 07/01/15 ............................................ 1,100,000
18,000,000 aMetropolitan Water District, Southern California Waterworks Revenue, Refunding,
Series A, AMBAC Insured, Weekly VRDN and Put, 2.95%, 06/01/23 ................. 18,000,000
3,500,000 aMoorpark MFR, Refunding, Le Club Apartments Project, Series A, Weekly VRDN
and Put, 3.05%, 11/01/15 ...................................................... 3,500,000
aOntario MFR, Weekly VRDN and Put,
1,900,000 Park Centre Partners Project, Series A, 2.90%, 08/01/07 .................... 1,900,000
6,700,000 Refunding, Rental Housing, Series A, 3.45%, 03/01/18 ....................... 6,700,000
1,830,000 Refunding, Rental Housing, Series B, 3.45%, 03/01/18 ....................... 1,830,000
1,190,000 aOntario RDA, MFHR, Daisy XX Association, Ltd. Project, Weekly VRDN and Put,
2.90%, 11/01/04 ............................................................... 1,190,000
aOrange County Apartment Development Revenue, Weekly VRDN and Put,
1,600,000 Issue I, Park Ridge, 3.00%, 11/01/08 ....................................... 1,600,000
100,000 Jessy L. Frost Project, Issue B, 3.25%, 03/01/09 ........................... 100,000
9,250,000 Refunding, The Lakes Projects, Series A, 3.15%, 12/01/06 ................... 9,250,000
3,000,000 Vista Verde Apartments, 3.30%, 08/01/18 .................................... 3,000,000
$ 390,000 aOxnard RDA, COP, Channel Islands Business Center, Weekly VRDN and Put,
3.825%, 07/01/05 .............................................................. $ 390,000
9,000,000 Pacific Gas & Electric, PCFA, TECP, 3.25%, 08/08/96 ............................ 9,000,000
7,000,000 Pacific Gas & Electric, TECP, 3.60%, 08/15/96 .................................. 7,000,000
aPalm Springs CRDA, COP, Weekly VRDN and Put,
1,100,000 Hotel No. 2, 3.30%, 12/01/14 ............................................... 1,100,000
900,000 Hotel No. 3, 3.30%, 12/01/14 ............................................... 900,000
1,500,000 aPico Rivera RDA, COP, Crossroad Plaza Project, Weekly VRDN and Put,
3.05%, 12/01/10 ............................................................... 1,500,000
3,550,000 aRedlands MFHR, Refunding, Parkview Terrace, Series A, Weekly VRDN and Put,
3.05%, 02/01/16 ............................................................... 3,550,000
aRiverside County IDA, IDR, Weekly VRDN and Put,
1,500,000 Calavo Growers, 3.20%, 09/01/05 ............................................ 1,500,000
1,050,000 Spaulding Project, Issue B-II, 3.30%, 07/05/19 ............................. 1,050,000
9,150,000 aRoseville Finance Authority Hospital, Lease Revenue, Series A, Roseville Hospital,
Weekly VRDN and Put, 3.05%, 10/01/14 .......................................... 9,150,000
8,700,000 aSacramento County COP, Administration Center and Court House Project, Weekly
VRDN and Put, 3.10%, 06/01/20 ................................................. 8,700,000
4,900,000 aSacramento County MFR, Various Housing Projects, Smoketree, Series A, Weekly
VRDN and Put, 3.10%, 04/15/10 ................................................. 4,900,000
6,750,000 Sacramento MUD Revenue, Refunding, Series R, 7.125%, 02/01/13 .................. 7,022,564
Sacramento MUD, TECP,
19,267,000 3.20%, 07/16/96 ............................................................ 19,267,000
8,000,000 3.55%, 08/06/96 ............................................................ 8,000,000
2,600,000 aSalinas City Apartment Development Revenue, Brentwood Gardens, Series 1985-A,
Weekly VRDN and Put, 2.90%, 03/01/05 .......................................... 2,600,000
San Bernardino TRAN,
20,000,000 4.50%, 07/05/96 ............................................................ 20,001,734
7,000,000 b 4.50%, 06/30/97 ............................................................ 7,042,000
aSan Bernardino, Weekly VRDN and Put,
2,150,000 Western Properties Project I, 3.10%, 02/01/05 .............................. 2,150,000
900,000 Western Properties Project III, 3.10%, 08/01/05 ............................ 900,000
1,600,000 Western Properties Project IV, 3.10%, 08/01/05 ............................. 1,600,000
2,550,000 Western Properties Project V, 3.10%, 08/01/05 .............................. 2,550,000
2,300,000 Woodview Apartments Project, Series I, 2.85%, 04/01/07 ..................... 2,300,000
5,500,000 San Diego County Regional Transportation Commission Sales Tax, TECP, 3.65%,
07/08/96 ...................................................................... 5,500,000
San Diego Gas & Electric, TECP,
2,000,000 3.40%, 09/09/96 ............................................................ 2,000,000
3,000,000 3.40%, 09/12/96 ............................................................ 3,000,000
$ 890,000 aSan Diego MFHR, Country Hills Facility, Series A, FNMA Secured, Weekly VRDN
and Put, 3.10%, 08/15/13 ...................................................... $ 890,000
2,500,000 aSan Diego MFMR, California Housing Authority, La Cima Apartments, Series K,
Weekly VRDN and Put, 3.05%, 12/01/08 .......................................... 2,500,000
2,900,000 aSan Diego MFMR, Refunding, University Town Center Apartments, Weekly VRDN
and Put, 3.05%, 10/01/15 ...................................................... 2,900,000
900,000 aSan Dimas RDA, Commercial Development Revenue, San Dimas Commercial
Center, Monthly VRDN and Put, 3.45%, 12/01/13 ................................. 900,000
4,600,000 aSan Francisco City and County MFHR, Winterland Project, Series C, Weekly VRDN
and Put, 3.00%, 06/01/06 ...................................................... 4,600,000
2,565,000 aSan Francisco City and County RDA, MFR, Rincon Center Project No. 8, Series B,
Weekly VRDN and Put, 3.00%, 12/01/06 .......................................... 2,565,000
aSan Jose MFMR, Weekly VRDN and Put,
700,000 Fairway Glen, Series A, FGIC Insured, 3.00%, 11/01/07 ...................... 700,000
600,000 Foxchase, Series B, FGIC Insured, 3.00%, 11/01/07 .......................... 600,000
1,000,000 Somerset Park Apartment Project, 3.30%, 11/01/17 ........................... 1,000,000
1,200,000 aSan Jose-Santa Clara Water Financing Authority, Sewer Revenue, Series B, Weekly
VRDN and Put, 3.15%, 11/15/11 ................................................. 1,200,000
820,000 aSan Mateo County COP, Capital Projects, Series B, Weekly VRDN and Put, 3.30%,
07/01/98 ...................................................................... 820,000
2,950,000 aSan Mateo County Housing Authority, MFHR, Pacific Oaks Apartment Project,
Series A, Weekly VRDN and Put, 3.20%, 07/01/17 ................................ 2,950,000
2,000,000 San Mateo County TRAN, 4.50%, 07/01/97 ......................................... 2,010,580
1,000,000 aSanta Clara County MFHR, Grove Garden Apartments, Series A, Weekly VRDN
and Put, 3.00%, 03/01/17 ...................................................... 1,000,000
500,000 aSouth San Francisco MFR, Magnolia Plaza Apartments, Series A, Weekly VRDN
and Put, 3.20%, 05/01/17 ..................................................... 500,000
Southern California Edision, PCFA, PCR, TECP,
3,000,000 3.45%, 08/12/96 ............................................................ 3,000,000
3,850,000 3.40%, 09/11/96 ............................................................ 3,850,000
2,100,000 Series B, 3.05%, 07/08/96 .................................................. 2,100,000
27,300,000 aSouthern California Public Power Authority Revenue, Refunding, Transmission
Project, AMBAC Insured, Weekly VRDN and Put, 3.10%, 07/01/19 .................. 27,300,000
1,500,000 aSouthern California Public Power Authority, Sub-Palo Verde Project, Refunding,
Series B, AMBAC Insured, Weekly VRDN and Put, 3.10%, 07/01/09 ................. 1,500,000
900,000 aStockton MFHR, Mariners Pointe Association, Series A, Weekly VRDN and Put,
3.10%, 09/01/18 ............................................................... 900,000
9,200,000 aSuisun City MFMR, Housing Authority, Village Green Apartments, Series A,
Weekly VRDN and Put, 3.10%, 06/15/18 .......................................... 9,200,000
4,600,000 aTustin 1915 Act, Reassessment District No. 95-2, Series A, Daily VDRN and Put,
3.10%, 09/02/13 ............................................................... 4,600,000
West Basin Municipal Water,
$ 3,000,000 TECP, 3.40%, 07/01/96 ...................................................... $ 3,000,000
5,000,000 TECP, 3.45%, 08/12/96 ...................................................... 5,000,000
3,400,000 aWestern Riverside County Regional Wastewater Authority Revenue, Regional
Wastewater Treatment, Daily VRDN and Put, 3.10%, 04/01/28 ..................... 3,400,000
-------------
Total Investments (Cost $622,754,704) 104.2% ........................ 622,754,704
Liabilites in Excess of Other Assets (4.2)% ........................ (24,935,914)
-------------
Net Assets 100.0%.................................................... $597,818,790
=============
</TABLE>
At June 30, 1996, there was no unrealized appreciation or depreciation for
financial statement or income tax purposes.
PORTFOLIO ABBREVIATIONS:
1915 Act - Improvement Bond Act of 1915
ABAG - The Association of Bay Area Governments
ACES - Adjustable Convertible Exempt Securities
AD - Assessment District
AMBAC - American Municipal Bond Assurance Corp.
COP - Certificate of Participation
CRDA - Community Redevelopment Agency
DATES - Demand Adjustable Tax-Exempt Securities
FGIC - Financial Guaranty Insurance Co.
FNMA - Federal National Mortgage Association
FSA - Financial Security Assistance
ID - Improvement District
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
RDA - Redevelopment Agency
TECP - Tax-Exempt Commercial Paper
TRAN - Tax and Revenue Anticipation Notes
aVariable rate demand notes (VRDNs) 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).
bSee Note 1(h) regarding securities purchased on a when-issued basis.
The accompanying notes are an integral part of these financial statements.
FRANKLIN CALIFORNIA TAX-FREE TRUST
Financial Statements
Statements of Assets and Liabilities
June 30, 1996
<TABLE>
<CAPTION>
Franklin Franklin California Franklin
California Intermediate-Term California
Insured Tax-Free Tax-Free Tax-Exempt
Income Fund Income Fund Money Fund
------------ ------------ ----------
<S> <C> <C> <C>
Assets:
Investments in securities:
At identified cost ........................................ $1,537,148,577 $ 97,531,434 $622,754,704
============ ============ ==========
At value................................................... 1,590,865,888 98,247,732 622,754,704
Cash........................................................ 128,283 356,118 674,197
Receivables:
Interest................................................... 28,430,753 1,621,854 3,826,292
Investment securities sold................................. -- -- 20,128,183
Capital shares sold........................................ 2,798,099 1,260,331 2,478,847
------------ ------------ ----------
Total assets........................................... 1,622,223,023 101,486,035 649,862,223
------------ ------------ ----------
Liabilities:
Payables:
Investment securities purhcased:
Regular delivery.......................................... -- -- 2,010,580
When-issued basis (Note 1)................................ 8,211,573 -- 45,294,960
Distributions payable to shareholders...................... 2,000,705 112,376 91,450
Management fees............................................ 624,988 37,742 245,071
Capital shares repurchased................................. 3,965,843 104,616 4,319,848
Distribution fees.......................................... 225,430 14,796 --
Shareholder servicing costs................................ 21,663 1,757 37,495
Accrued expenses and other liabilities...................... 84,450 15,910 44,029
------------ ------------ ----------
Total liabilities...................................... 15,134,652 287,197 52,043,433
------------ ------------ ----------
Net assets, at value......................................... $1,607,088,371 $101,198,838 $597,818,790
============ ============ ==========
Net assets consist of:
Undistributed net investment income......................... 1,104,905 229,832 --
Unrealized appreciation on investments...................... 53,717,311 716,298 --
Net realized loss........................................... (985,791) (688,580) --
Class I capital shares...................................... 1,534,627,413 100,941,288 597,818,790
Class II capital shares..................................... 18,624,533 -- --
------------ ------------ ----------
Net assets, at value......................................... $1,607,088,371 $101,198,838 $597,818,790
============ ============ ==========
Class I shares:
Net assets, at value........................................ $1,588,630,800 $101,198,838 $597,818,790
============ ============ ==========
Shares outstanding.......................................... 132,241,504 9,481,540 597,818,790
============ ============ ==========
Net asset value per share................................... $12.01* $10.67* $1.00
============ ============ ==========
Maximum offering price per share (100/95.75, 100/97.75,
100/100 of net asset value per share, respectively)........ $12.54 $10.92 $1.00
============ ============ ==========
Class II shares:
Net assets, at value........................................ $18,457,571 -- --
============ ============ ==========
Shares outstanding.......................................... 1,529,053 -- --
============ ============ ==========
Net assets value per share.................................. $12.07* -- --
============ ============ ==========
Maximum offering price per share (100/99 of net
asset value per share)..................................... $12.19 -- --
============ ============ ==========
</TABLE>
*Redemption price per share is equal to net asset value less any applicable
contingent deferred sales charge.
The accompanying notes are an integral part of these financial statements.
FRANKLIN CALIFORNIA TAX-FREE TRUST
Financial Statements (cont.)
Statements of Operations
for the year ended June 30, 1996
<TABLE>
<CAPTION>
Franklin Franklin California Franklin
California Intermediate-Term California
Insured Tax-Free Tax-Free Tax-Exempt
Income Fund Income Fund Money Fund
----------- ------------ ---------
<S> <C> <C> <C>
Investment income:
Interest (Note 1).............................................. $94,922,877 $5,263,494 $21,671,893
----------- ------------ ---------
Expenses:
Management fees (Note 5)....................................... 7,290,593 607,672 3,083,906
Distribution fees- Class I (Note 5)............................ 1,248,888 86,907 --
Distribution fees- Class II (Note 5)........................... 65,018 -- --
Shareholder servicing costs (Note 5)........................... 263,118 21,287 452,042
Reports to shareholders........................................ 191,836 13,870 292,894
Custodian fees................................................. 89,406 5,531 31,379
Trustees' fees and expenses.................................... 64,110 4,162 26,050
Pricing fees................................................... 59,264 28,773 237
Professional fees.............................................. 57,618 3,594 22,603
Insurance...................................................... 6,740 -- --
Registration and filing fees................................... 4,715 1,239 7,367
Other.......................................................... 31,570 6,603 18,627
Management fees waived by manager (Note 5)..................... -- (344,491) --
----------- ------------ ---------
Total expenses............................................ 9,372,876 435,147 3,935,105
----------- ------------ ---------
Net investment income................................. 85,550,001 4,828,347 17,736,788
----------- ------------ ---------
Realized and unrealized gain (loss) on investments:
Net realized gain (loss)....................................... 7,736,583 108,711 (1,444)
Net unrealized appreciation (depreciation)..................... (2,001,089) 2,273,517 --
----------- ------------ ---------
Net realized and unrealized gain (loss) on investments.......... 5,735,494 2,382,228 (1,444)
----------- ------------ ---------
Net increase in net assets resulting from operations............ $91,285,495 $7,210,575 $17,735,344
=========== ============ =========
</TABLE>
The accompanying notes are an integral part of these financial statements.
FRANKLIN CALIFORNIA TAX-FREE TRUST
Financial Statements (cont.)
Statements of Changes in Net Assets
for the years ended June 30, 1996 and 1995
<TABLE>
<CAPTION>
Franklin California InsuredFranklin California Intermediate-Franklin California
Tax-Free Income Fund Term Tax-Free Income Fund Tax-Exempt Money Fund
----------------------- ------------------- ----------------------
1996 1995 1996 1995 1996 1995
----------- ----------- ---------- --------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income ... $ 85,550,001 $ 82,829,714 $ 4,828,347 $ 5,021,562 $ 17,736,788 $ 20,297,656
Net realized gain (loss) from
security transactions .. 7,736,583 5,592,380 108,711 (465,495) (1,444)* (14,563)*
Net unrealized apprecia-
tion (depreciation) on
investments ............. (2,001,089) 18,768,345 2,273,517 1,696,820 -- --
----------- ----------- ---------- --------- ----------- -----------
Net increase
in net assets
resulting from
operations ........ 91,285,495 107,190,439 7,210,575 6,252,887 17,735,344 20,283,093
Distributions to share-
holders from undistributed
net investment income:
Class I (Note 7) ....... (85,122,188) (82,377,546) (4,734,070) (4,925,765) (17,735,344)* (20,283,093)*
Class II (Note 7) ...... (483,443) (1,771) -- -- --
Increase (decrease) in net
assets from capital share
transactions (Note 3) ... 132,821,653 (7,045,433) 9,937,573 (6,557,744) (44,338,544) (111,964,093)
----------- ----------- ---------- --------- ----------- -----------
Net increase
(decrease) in
net assets ........ 138,501,517 17,765,689 12,414,078 (5,230,622) (44,338,544) (111,964,093)
Net assets:
Beginning of year........ 1,468,586,854 1,450,821,165 88,784,760 94,015,382 642,157,334 754,121,427
----------- ----------- ---------- --------- ----------- -----------
End of year.............. $1,607,088,371 $1,468,586,854 $101,198,838 $88,784,760 $597,818,790 $ 642,157,334
=========== =========== ========== ========= =========== ===========
Undistributed net investment
income included in net
assets:
Beginning of year.......$ 1,160,535 $ 710,138 $ 135,555$ 39,758 $ -- $ --
=========== =========== ========== ========= =========== ===========
End of year............. $ 1,104,905 $ 1,160,535 $ 229,832 $ 135,555 $ -- $ --
=========== =========== ========== ========= =========== ===========
</TABLE>
*Distributions were decreased by net realized loss from security transactions of
$1,444 in 1996 and $14,563 in 1995.
The accompanying notes are an integral part of these financial statements.
FRANKLIN CALIFORNIA TAX-FREE TRUST
Notes to Financial Statements
1. SIGNIFICANT ACCOUNTING POLICIES
Franklin California Tax-Free Trust (the Trust) is an open-end management
investment company (mutual fund), registered under the Investment Company Act of
1940, as amended. The Trust consists of three separate funds: Franklin
California Insured Tax-Free Income Fund (the Insured Fund), Franklin California
Intermediate-Term Tax-Free Income Fund (the Intermediate Fund) and Franklin
California Tax-Exempt Money Fund (the Money Fund). Each of the Funds issues a
separate series of the Trust's shares and maintains a totally separate and
distinct investment portfolio. The Trust's Intermediate Fund is non-diversified,
while 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.
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
maturities of 397 days or less. If the Fund 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 Board has established procedures designed to stabilize, to the extent
reasonably possible, the Fund's price per share as computed for the purpose of
sales and redemptions at $1.00.
b. Municipal Bonds 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 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. 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.
1. SIGNIFICANT ACCOUNTING POLICIES (cont.)
d. 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.
e. Investment Income, Expenses and Distributions:
For the Insured Fund and the Intermediate-Term Fund, distributions to
shareholders are recorded on the ex-dividend date. Interest income and estimated
expenses are accrued daily. Original issue 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 day 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 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
distributions is computed daily and includes net investment income, plus or
minus any gains or losses on security transactions and any changes in unrealized
portfolio appreciation or depreciation.
f. 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 for 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.
g. 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.
h. Securities Purchased on a When-Issued Basis or Delayed Delivery Basis:
The Funds may purchase 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 the
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.
2. DISTRIBUTIONS AND CAPITAL LOSS CARRYOVERS
At June 30, 1996, for tax purposes, the Insured and the Intermediate Funds had
capital loss carryovers as follows:
Insured Fund Intermediate Fund Money Fund
--------- ------------- ---------
2002 ..................... $865,468 $223,085 --
2003 ..................... -- 465,495 $14,563
--------- ------------- ---------
.......................... $865,468 $688,580 $14,563
--------- ------------- ---------
--------- ------------- ---------
For tax purposes, the aggregate cost of securities is higher (and unrealized
appreciation is lower) than for financial reporting purposes at June 30, 1996 by
$120,323 in the Insured Fund.
3. TRUST SHARES
At June 30, 1996, there was an unlimited number of no par value shares of
beneficial interest authorized. Transactions in the Funds' shares for the years
ended June 30, 1996 and 1995 were as follows:
<TABLE>
<CAPTION>
Class I Shares:
Insured Fund
-------------------------------------------------------
1996 1995
--------------------- -----------------------
Shares Amount Shares Amount
--------- ----------- --------- ---------
<S> <C> <C> <C> <C>
Shares sold...................................... 26,797,375 $ 325,025,207 22,166,093 $ 259,120,608
Shares issued in reinvestment of distributions... 2,876,043 34,838,739 2,826,303 33,085,583
Shares redeemed.................................. (20,236,111) (245,153,955) (25,761,338) (299,764,495)
--------- ----------- --------- -----------
Net increase (decrease).......................... 9,437,307 $ 114,709,991 (768,942) $ (7,558,304)
========= =========== ========= ===========
</TABLE>
3. TRUST SHARES (cont.)
Class II Shares:
<TABLE>
<CAPTION>
Insured Fund
--------------------------------------------------------
1996 1995
-------------------------- ------------------------
Shares Amount Shares Amount
--------- ----------- --------- ----------
<S> <C> <C> <C> <C>
Shares sold...................................... 1,610,542 $19,608,155 42,176 $511,865
Shares issued in reinvestment of distributions... 26,614 323,905 84 1,006
Shares redeemed.................................. (150,363) (1,820,398) -- --
--------- ----------- --------- -----------
Net increase .................................... 1,486,793 $18,111,662 42,260 $512,871
========= =========== ========= ===========
Intermediate Fund
---------------------------------------------------------
1996 1995
-------------------------- -------------------------
Shares Amount Shares Amount
--------- ----------- --------- -----------
Shares sold...................................... 2,515,969 $ 27,007,213 3,529,557 $ 35,591,281
Shares issued in reinvestment of distributions... 267,330 2,856,178 287,710 2,922,503
Shares redeemed.................................. (1,858,277) (19,925,818) (4,478,352) (45,071,528)
--------- ----------- --------- -----------
Net increase (decrease).......................... 925,022 $ 9,937,573 (661,085) $ (6,557,744)
========= =========== ========= ===========
</TABLE>
<TABLE>
<CAPTION>
Money Fund
---------------------------------------------------
1996 1995*
----------- ------------
Amount Amount
----------- ------------
<S> <C> <C>
Transactions in capital stock at $1.00 per share were as follows:
Shares sold.................................................................... $ 828,692,328 $ 1,052,884,844
Shares issued in reinvestment of distributions................................. 17,679,523 20,299,685
Shares redeemed................................................................ (890,710,395) (1,185,148,622)
----------- ------------
Net decrease ..................................................................$ (44,338,544) $ (111,964,093)
=========== ============
</TABLE>
* For the period May 1, 1995 to June 30, 1995.
4. PURCHASES AND SALES OF SECURITIES
Purchases and sales of securities (excluding purchases and sales of short-term
securities) for the year ended June 30, 1996 were as follows:
<TABLE>
<CAPTION>
Insured Fund Intermediate Fund Money Fund
---------- ------------- ---------
<S> <C> <C> <C>
Purchases ....................................................... $342,445,158 $16,601,532 --
Sales ........................................................... $217,615,181 $ 9,527,461 --
</TABLE>
5. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
a. Management Agreement:
Under the terms of a management agreement, Franklin Advisers, Inc. (Advisers),
provides investment advice, administrative services, office space and facilities
to each Fund, and 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
---------------- ------------------------------------
0.625% First $100 million
0.500% Over $100 million, up to and including $250 million
0.450% 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 year ended June 30, 1996,
the Funds' expenses did not exceed these limitations. However, Advisers agreed
in advance to waive management fees for the Intermediate-Term Fund, aggregating
$344,491.
b. Shareholder Services Agreement:
Under the terms of a shareholder services agreement with Franklin/Templeton
Investor Services, Inc. (Investor Services), the Funds pay costs on a per
shareholder account basis. Shareholder servicing cost incurred by the Insured
Fund, the Intermediate-Term Fund and the Money Fund for the year ended June 30,
1996 aggregated $736,447, of which $712,135 was paid to Investor Services.
c. Distribution Plans and Underwriting Agreement:
Under the terms of a distribution plans pursuant to Rule 12b-1 of the Investment
Company Act of 1940 (the Plans), the Intermediate-Term Fund reimburses
Franklin/Templeton Distributors, Inc. (Distributors), in an amount up to 0.10%
per annum of the Fund's average daily net assets, while the Insured Fund
reimburses Distributors up to 0.10% per annum for Class I and 0.65% per annum
for Class II, of the average daily net assets of such class of the Fund, for
costs incurred in the promotion, offering and marketing of the Funds' shares.
The Plans do not permit nor require payments of excess costs after termination.
Fees incurred by the Funds under the Plans aggregated $1,400,813 for the year
ended June 30, 1996.
5. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES (cont.)
c. Distribution Plans and Underwriting Agreement: (cont.)
In its capacity as underwriter for the shares of the Insured Fund and the
Intermediate-Term Fund, Franklin/Templeton Distributors receives commissions on
sales of the Funds' shares of beneficial interest. 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 the Funds' shares. Commissions
received by Distributors, the amounts paid to other dealers, and any applicable
contingent deferred sales charges for the year ended June 30, 1996 were as
follows:
<TABLE>
<CAPTION>
Insured Fund Intermediate Fund Money Fund
--------- ------------ --------
<S> <C> <C> <C>
Class I
Total commissions received......................................... $5,764,325 $196,920 $ --
Paid to other dealers.............................................. $5,791,304 $237,070 $ --
Contingent deferred sales charges.................................. $ 26,552 $ 9,939 $ 5,658
Class II
Total commissions received......................................... $ 195,722 $ -- $ --
Paid to other dealers.............................................. $ 386,803 $ -- $ --
Contingent deferred sales charges.................................. $ 13,922 $ -- $ --
</TABLE>
d. Other Affiliates and Related Party Transactions:
Certain officers and trustees of the Trust are also officers and/or directors of
Distributors, Advisers, and Investor Services, all wholly-owned subsidiaries of
Franklin Resources, Inc.
6. CREDIT RISK
All of the Funds' investments are in the securities of issuers in the state of
California. Such concentration may subject the Funds more significantly to
economic changes occurring within those areas.
7. FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest outstanding throughout the
period by Fund are as follows:
<TABLE>
<CAPTION>
Per Share Operating Performance Ratios/Supplemental Data
- ---------------------------------------------------------------------------------------------------------------------------
Ratio of Ratio of Net
Net Asset Net Realized Distributions Net Asset Net Assets Expenses Investment
Year Value at Net & Unrealized Total From From Net Value at End to Average Income Portfolio
Ended Beginning Investment Gain (Loss) Investment Investment at End Total of Year Net Assets to Average Turnover
June 30 of Period Income on Securitie Operations Income of Period Return+ (in 000's)(See Note 5)++ Net Assets Rate
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Insured Fund:
Class I Shares:
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 .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
1996 11.95 .666 .062 .728 (.668) 12.01 6.18 1,588,631 .60 5.50 14.22
Class II Shares:
1995*** 11.88 .110 .103 .213 (.103) 11.99 1.79 507 1.17* 5.03* 11.85
1996 11.99 .600 .075 .675 (.595) 12.07 5.70 18,458 1.17 4.96 14.22
</TABLE>
7. FINANCIAL HIGHLIGHTS (cont.)
<TABLE>
<CAPTION>
Per Share Operating Performance Ratios/Supplemental Data
- ---------------------------------------------------------------------------------------------------------------------------
Ratio of Ratio of Net
Net Asset Net Realized Distributions Net Asset Net Assets Expenses Investment
Year Value at Net & Unrealized Total From From Net Value at End to Average Income Portfolio
Ended Beginning Investment Gain (Loss) Investment Investment at End Total of Year Net Assets to Average Turnover
June 30 of Period Income on Securities Operations Income of Period Return+ (in 000's) (See Note 5)++ Net Assets Rate
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Intermediate 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
1996 10.38 .530 .285 .815 (.525) 10.67 7.96 101,199 .45 4.99 10.13
Money Fund:
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 --
1996 1.00 .028 -- .028 (.028) 1.00 2.85 597,819 .63 2.83 --
</TABLE>
*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 period
indicated. It is not annualized. It does not include the maximum front-end sales
charge or the contingent deferred sales charge and assumes reinvestment of
dividends and capital gains at net asset value. Prior to May 1, 1994, for the
Insured Fund, dividends were reinvested at the maximum offering price and
capital gains at net asset value.
++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 .81%, respectively.
During the fiscal year ended June 30, 1996, the Funds paid distributions from
undistributed net investment income in the amounts shown in the Statement of
Changes in Net Assets. The Funds hereby designate the total amount of these
distributions as exempt-interest dividends under Section 852(b)(5) of the
Internal Revenue Code.
FRANKLIN CALIFORNIA TAX-FREE TRUST
Report of Independent Auditors
To the Shareholders and Board of Trustees
of Franklin California Tax-Free Trust:
We have audited the accompanying statements of assets and liabilities of each of
the three funds comprising the Franklin California Tax-Free Trust (the Funds),
including each Fund's statement of investments in securities and net assets, as
of June 30, 1996, and the related statements of operations for the year then
ended, the statements of changes in net assets for each of the two years in the
period then ended, and the financial highlights for each of the periods
presented. These financial statements and financial highlights are the
responsibility of the Funds' management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatements. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of June
30, 1996 by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the three funds comprising the Franklin California Tax-Free Trust as of June
30, 1996, the results of their operations for the year then ended, the changes
in their net assets for each of the two years in the period then ended, and the
financial highlights for each of the periods presented, in conformity with
generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
San Francisco, California
August 6, 1996
LITERATURE REQUEST
Franklin California Tax-Free Trust Annual Report 6/30/96.
APPENDIX
DESCRIPTION OF GRAPHIC MATERIAL OMITTED FROM EDGAR FILING
(PURSUANT TO ITEM 304 (a) OF REGULATION S-T)
GRAPHIC MATERIAL (1)
This bar chart shows the comparison between the fund's distribution rate of
5.36% and the taxable equivalent distribution rate of 9.78%, for Class I shares.
GRAPHIC MATERIAL (2)
The following line graph hypothetically compares the performance of the fund's
Class I Shares with the Consumer Price Index (CPI) and the Lehman Brothers
Municipal Bond Index, based on a $10,000 investment from 7/1/86 to 6/30/96.
<TABLE>
<CAPTION>
Period Ending Fund Index Index
<S> <C> <C> <C>
7/1/86 9573 10,000 10,000
7/31/86 9,650 10,061 10,000
8/31/86 10,098 10,512 10,018
9/30/86 10,003 10,538 10,064
10/31/86 10,264 10,720 10,073
11/30/86 10,396 10,933 10,082
12/31/86 10,440 10,902 10,091
1/31/87 10,670 11,230 10,155
2/28/87 10,755 11,285 10,191
3/31/87 10,669 11,166 10,237
4/30/87 9,806 10,605 10,293
5/31/87 9,512 10,552 10,329
6/30/87 9,790 10,862 10,365
7/31/87 9,914 10,973 10,392
8/31/87 9,927 10,997 10,447
9/30/87 9,335 10,591 10,501
10/31/87 9,389 10,628 10,528
11/30/87 9,714 10,906 10,538
12/31/87 9,901 11,064 10,538
1/31/88 10,404 11,458 10,565
2/29/88 10,538 11,579 10,593
3/31/88 10,160 11,445 10,638
4/30/88 10,237 11,532 10,694
5/31/88 10,217 11,499 10,730
6/30/88 10,413 11,666 10,776
7/31/88 10,471 11,742 10,821
8/31/88 10,510 11,753 10,867
9/30/88 10,769 11,966 10,940
10/31/88 11,071 12,176 10,976
11/30/88 10,949 12,064 10,984
12/31/88 11,100 12,187 11,003
1/31/89 11,335 12,439 11,058
2/28/89 11,210 12,298 11,104
3/31/89 11,178 12,268 11,168
4/30/89 11,479 12,559 11,241
5/31/89 11,719 12,820 11,305
6/30/89 11,898 12,994 11,332
7/31/89 12,005 13,171 11,359
8/31/89 11,942 13,042 11,377
9/30/89 11,879 13,003 11,413
10/31/89 11,999 13,162 11,468
11/30/89 12,118 13,392 11,496
12/31/89 12,217 13,502 11,514
1/31/90 12,175 13,438 11,633
2/28/90 12,308 13,558 11,687
3/31/90 12,288 13,562 11,752
4/30/90 12,190 13,464 11,771
5/31/90 12,504 13,758 11,798
6/30/90 12,597 13,879 11,861
7/31/90 12,791 14,084 11,906
8/31/90 12,498 13,880 12,016
9/30/90 12,500 13,888 12,117
10/31/90 12,744 14,140 12,190
11/30/90 12,989 14,424 12,216
12/31/90 12,991 14,487 12,216
1/31/91 13,227 14,682 12,290
2/28/91 13,276 14,809 12,308
3/31/91 13,314 14,815 12,327
4/30/91 13,494 15,014 12,345
5/31/91 13,592 15,147 12,382
6/30/91 13,571 15,132 12,418
7/31/91 13,743 15,317 12,437
8/31/91 13,867 15,519 12,473
9/30/91 14,040 15,721 12,528
10/31/91 14,140 15,862 12,546
11/30/91 14,118 15,907 12,583
12/31/91 14,394 16,249 12,592
1/31/92 14,408 16,286 12,610
2/29/92 14,408 16,291 12,656
3/31/92 14,459 16,297 12,720
4/30/92 14,572 16,442 12,738
5/31/92 14,788 16,637 12,756
6/30/92 14,991 16,916 12,802
7/31/92 15,515 17,423 12,829
8/31/92 15,293 17,253 12,865
9/30/92 15,317 17,365 12,901
10/31/92 15,013 17,195 12,946
11/30/92 15,430 17,502 12,964
12/31/92 15,625 17,681 12,955
1/31/93 15,834 17,886 13,018
2/28/93 16,311 18,534 13,064
3/31/93 16,268 18,337 13,110
4/30/93 16,372 18,522 13,146
5/31/93 16,464 18,626 13,165
6/30/93 16,746 18,937 13,183
7/31/93 16,784 18,962 13,183
8/31/93 17,096 19,356 13,220
9/30/93 17,300 19,577 13,248
10/31/93 17,404 19,614 13,302
11/30/93 17,371 19,441 13,312
12/31/93 17,658 19,852 13,312
1/31/94 17,835 20,078 13,348
2/28/94 17,477 19,558 13,393
3/31/94 16,778 18,762 13,438
4/30/94 16,844 18,921 13,457
5/31/94 16,952 19,086 13,467
6/30/94 16,888 18,970 13,512
7/31/94 17,184 19,317 13,549
8/31/94 17,251 19,384 13,603
9/30/94 17,027 19,099 13,640
10/31/94 16,714 18,759 13,649
11/30/94 16,431 18,420 13,667
12/31/94 16,720 18,825 13,667
1/31/95 17,277 19,363 13,722
2/28/95 17,763 19,927 13,777
3/31/95 17,891 20,156 13,822
4/30/95 17,944 20,180 13,868
5/31/95 18,437 20,824 13,896
6/30/95 18,203 20,643 13,923
7/31/95 18,319 20,839 13,923
8/31/95 18,482 21,104 13,960
9/30/95 18,598 21,237 13,987
10/31/95 18,870 21,545 14,034
11/30/95 19,222 21,902 14,024
12/31/95 19,450 22,112 14,014
1/31/96 19,569 22,280 14,097
2/29/96 19,468 22,129 14,142
3/31/96 19,178 21,846 14,215
4/30/96 19,108 21,785 14,271
5/31/96 19,117 21,776 14,298
6/30/96 19,335 22,013 14,306
93.35% 120.13% 43.06%
</TABLE>
GRAPHIC MATERIAL (3)
This bar chart shows the comparison between the fund's disribution rate of 4.93%
and the taxable equivalent distribution rate of 9.00%, for Class II shares.
GRAPHIC MATERIAL (4)
The following line graph hypothetically compares the performance of the fund's
Class II Shares with the Consumer Price Index (CPI) and the Lehman Brothers
Municipal Bond Index, based on a $10,000 investment from 5/1/95 to 6/30/96.
<TABLE>
<CAPTION>
Period Ending Fund Index Index
<S> <C> <C> <C> <C> <C>
5/1/95 9900 $10,000 $10,000
5/31/95 10,197 3.19% 10,319 0.20% 10,020
6/30/95 10,063 -0.87% 10,229 0.20% 10,040
7/31/95 10,122 0.95% 10,326 0.00% 10,040
8/31/95 10,215 1.27% 10,458 0.26% 10,066
9/30/95 10,265 0.63% 10,523 0.20% 10,086
10/31/95 10,418 1.45% 10,676 0.33% 10,120
11/30/95 10,606 1.66% 10,853 -0.07% 10,112
12/31/95 10,727 0.96% 10,957 -0.07% 10,105
1/31/96 10,787 0.76% 11,041 0.59% 10,165
2/29/96 10,726 -0.68% 10,966 0.32% 10,198
3/31/96 10,571 -1.28% 10,825 0.52% 10,251
4/30/96 10,528 -0.28% 10,795 0.39% 10,291
5/31/96 10527 -0.04% 10,791 0.19% 10,310
6/30/96 10543 1.09% 10,908 0.06% 10,316
5.43% 9.08% 3.16%
</TABLE>
GRAPHIC MATERIAL (5)
This chart shows in pie chart format the fund'securities breakdown by sector as
a percentage of the fund's total net assets.
<TABLE>
<CAPTION>
Quality Breakdown on 6/30/96
<S> <C>
AAA 25.9%
AA 3.8%
A 36.8%
BBB 33.4%
Below Investment Grade 0.1%
</TABLE>
GRAPHIC MATERIAL (6)
This bar chart shows the comparison between the fund's disribution rate of 4.84%
and the taxable equivalent distribution rate of 8.83%.
GRAPHIC MATERIAL (7)
The following line graph hypothetically compares the performance of the fund
with the Consumer Price Index (CPI) and the Lehman Brothers 10-Year Municipal
Bond Index, based on a $10,000 investment from 9/23/92 to 6/30/96.
<TABLE>
<CAPTION>
Period Ending Fund Index Index
<S> <C> <C> <C>
9/23/92 9775 10,000 10,000
9/30/92 9,785 10,019 10,007
10/31/92 9,736 9,917 10,042
11/30/92 9,922 10,099 10,056
12/31/92 9,990 10,216 10,049
1/31/93 10,074 10,388 10,098
2/28/93 10,395 10,769 10,133
3/31/93 10,401 10,611 10,169
4/30/93 10,436 10,712 10,197
5/31/93 10,482 10,750 10,211
6/30/93 10,588 10,962 10,226
7/31/93 10,614 10,989 10,226
8/31/93 10,759 11,216 10,254
9/30/93 10,986 11,354 10,276
10/31/93 11,031 11,373 10,318
11/30/93 10,912 11,279 10,325
12/31/93 11,142 11,520 10,325
1/31/94 11,259 11,661 10,353
2/28/94 10,995 11,342 10,388
3/31/94 10,645 10,908 10,424
4/30/94 10,702 11,028 10,438
5/31/94 10,769 11,117 10,445
6/30/94 10,762 11,069 10,481
7/31/94 10,925 11,255 10,509
8/31/94 10,972 11,299 10,551
9/30/94 10,869 11,146 10,580
10/31/94 10,734 10,983 10,587
11/30/94 10,578 10,776 10,601
12/31/94 10,669 10,970 10,601
1/31/95 10,901 11,254 10,643
2/28/95 11,188 11,572 10,686
3/31/95 11,313 11,729 10,721
4/30/95 11,328 11,743 10,757
5/31/95 11,652 12,115 10,778
6/30/95 11,534 12,040 10,800
7/31/95 11,683 12,217 10,800
8/31/95 11,867 12,383 10,828
9/30/95 11,961 12,462 10,849
10/31/95 12,146 12,606 10,885
11/30/95 12,320 12,774 10,878
12/31/95 12,370 12,852 10,870
1/31/96 12,477 12,982 10,934
2/29/96 12,447 12,929 10,969
3/31/96 12,360 12,769 11,026
4/30/96 12,330 12,724 11,069
5/31/96 12,335 12,688 11,090
6/30/96 $12,456 12,809 11,097
24.56% 28.09% 10.97%
</TABLE>
GRAPHIC MATERIAL (8)
This bar chart shows the comparison between the fund's seven-day annualized
yield of 2.66% and the taxable equivalent yield of 4.85%.
