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 17
Statement of Investments 19
Financial Statements 55
Notes to Financial Statements 58
MESSAGE FROM THE CHAIRMAN
February 17, 1997
Dear Shareholder:
It is a pleasure to bring you the semi-annual report of the Franklin California
Tax-Free Trust for the period ended December 31, 1996.
Mild inflation and fluctuating interest rates characterized the six-month
reporting period. In the first part of the period, an improving economy brought
higher interest rates and fears of higher inflation. These fears began to ease
in September, however, when preliminary estimates showed that the third
quarter's annualized Gross Domestic Product growth rate would be closer to 2.0%,
significantly slower than the second quarter's 4.7%.
Once investors realized that inflation remained under control, interest rates
and yields declined. Rates dropped further following the November elections,
with 30-year Treasuries yielding 6.36% on November 30, 1996, an 8.0% drop from
the start of the period. When economic reports revealed that activity in some
key sectors, such as manufacturing, picked up during the fourth quarter,
interest rates began to rise in December. At the close of the period, the
30-year Treasury's yield was 6.60%.*
*Source: Micropal.
-- Celebrating 50 Years --
This year marks 50 years of business for Franklin Templeton. Over these years,
we have experienced profound changes in technology, regulations and customer
expectations within the mutual fund industry. As one of the largest mutual fund
families, we're proud to be an innovative industry leader, providing people like
you with an opportunity to invest in companies and governments around the globe.
We thank you for your past support and look forward to serving your investment
needs in the years ahead.
In the coming year, we expect U.S. economic growth to be moderate and inflation
to remain under control. Although interest rates will fluctuate as perceptions
of inflation change, they should remain within a fairly narrow band.
The following pages contain specific information regarding the performance of
your investment and the other funds in the Franklin California Tax-Free Trust.
As always, we appreciate your continued support and welcome your comments.
Sincerely,
Charles B. Johnson
Chairman
Franklin California Tax-Free Trust
The California Economy
At the close of California's 1995-96 fiscal year on June 30, 1996, the state had
experienced its second year of operating surpluses and broad economic
improvement. Additionally, California's employment had returned to its
pre-recession level.+ Based in part on the state's improving economic position,
Standard & Poor's(R) Corporation (a national rating agency) raised its rating of
California's debt from A to A+ in July 1996.
According to a September 12, 1996, letter from Governor Pete Wilson to
California's senators and assemblymembers, the state had finally regained the
730,000 jobs lost during the recession in the early 1990s. For the first time
since the late 1980s, California's economic growth outpaced the nation, with the
state adding jobs in dynamic new industries such as multimedia, biotechnology
and Internet/Intranet services.++
We expect California's economy to continue its expansion through 1997, and
therefore we hold a positive outlook for the state and its municipal debt.
+Source: Standard & Poor's Creditweek Municipal, September 9, 1996.
++Source: Economic Report of the Governor, September 12, 1996.
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.*+
We are pleased to report that the Franklin California Insured Tax-Free Income
Fund Class I shares generated a cumulative total return of +4.84% for the
six-month period, as discussed in the Performance Summary on page 5.
During the reporting period, interest rates continued to react to investors'
perceptions of economic growth and potentially higher inflation. The 30-year
Treasury's yield, for example, fluctuated between 7.19% and 6.35%, during the
six-month period.
The municipal securities in which your fund invests are insured by private,
municipal bond insurance companies as to the scheduled payment of principal and
interest. Because of this insurance, the Franklin California Insured Tax-Free
Income Fund enjoys an "AAAf" rating -- the highest mutual fund rating possible
- -- from Standard & Poor's(R), a national rating agency. This rating reflects
Standard & Poor's assessment of the portfolio's overall credit quality, based
primarily on your fund's stated investment objective and policies, and is
subject to change. In addition, securities not directly insured by such
insurance companies are secured by direct obligations of the U.S. government.
Even though half of the debt brought to market during the past six months was
"insured," the selection of issues lacked considerable breadth. Nevertheless,
the portfolio was able to achieve diversification and balance in its holdings,
which remain as ongoing portfolio management objectives. As you can see from the
table to the right, we maintained investments in a broad range of municipal
sectors. Such diversification helps us reduce the fund's exposure to risk and
market volatility.
*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.
+Fund shares are not insured by any U.S. government agency. Insurance relates
only to the payment of principal and interest on the portfolio's securities. It
does not eliminate market risks to the fund's share price or insure the value of
the shares. Terms of the insurance are more fully described in the prospectus,
and no representation is made as to any insurer's ability to meet its
commitments.
Looking forward, we anticipate slow to moderate economic growth, which should
encourage the Federal Reserve to leave short-term interest rates unchanged. As
such, long-term interest rates should remain at, or near, current levels and
provide a favorable, stable environment for municipal debt investments.
Franklin California Insured
Tax-Free Income Fund
Portfolio Breakdown on December 31, 1996
Based on Total Long-Term Investments
% of Total
Long-Term
Sector Investments
Pre-Refunded 18.8%
Utilities 17.9%
Certificates of Participation 13.7%
Tax-Allocation Bonds 13.3%
Other Revenue 12.0%
Education 6.0%
Hospitals 4.2%
Mello-Roos Bonds 3.2%
Housing 3.1%
Transportation 2.7%
General Obligations 2.4%
Special Assessment 1.0%
Sales Tax Revenue 0.9%
Marks-Roos Bonds 0.8%
For a complete list of portfolio holdings, please see page 19 of this report.
Performance Summary
Class I
The Franklin California Insured Tax-Free Income Fund's Class I share price, as
measured by net asset value, increased 24.0 cents during the reporting period,
from $12.01 on June 30, 1996, to $12.25 on December 31, 1996. During the
reporting period, the fund paid income distributions totaling 33.0 cents
($0.330) per share.*
At the end of this reporting period, your fund's distribution rate was 5.16%,
based on an annualization of the current monthly dividend of 5.5 cents ($0.055)
per share and the maximum offering price of $12.79 on December 31, 1996.
Distributions will vary based on the earnings of the fund's portfolio, and past
distributions are not
GRAPHIC MATERIAL 1 OMITTED - SEE APPENDIX AT END OF DOCUMENT
*Assumes shares were purchased and held for the entire accrual period. Since
dividends accrue daily, your actual distributions will vary depending on the
date you purchased your shares and any account activity during the month. Income
distributions and total return calculations include all accrued income earned by
the fund during the reporting period.
predictive of future trends. This double tax-free rate is generally higher than
the after-tax return on a comparable taxable investment. For example, if you are
in the maximum combined federal and California state personal income tax bracket
of 45.2%, you would have to earn 9.42% from a taxable investment to match your
fund's tax-free distribution rate.
The fund posted a cumulative total return of +4.84% for the six-month period and
+4.22% for the 12-month period ended December 31, 1996. Total returns measure
the change in value of an investment, assuming reinvestment of all
distributions, and do not include the intial sales charge. Past performance is
not predictive of future results.
Franklin California Insured
Tax-Free Income Fund - Class I
Dividend Distributions (7/1/96 - 12/31/96)
Dividend
Month per Share
July 5.5 cents
August 5.5 cents
September 5.5 cents
October 5.5 cents
November 5.5 cents
December 5.5 cents
Total 33.0 cents
Franklin California Insured Tax-Free Income Fund - Class I
Periods Ended December 31, 1996
Since
Inception
1-Year 5-Year (9/3/85)
Cumulative Total Return1 4.22% 40.78% 146.27%
Average Annual Total Return2 -0.20% 6.16% 7.87%
Distribution Rate3 5.16%
Equivalent Taxable Distribution Rate4 9.42%
30-Day Standardized Yield5 4.47%
Equivalent Taxable Yield4 8.16%
1. Cumulative total returns measure the change in value of an investment over
the periods indicated and do not include the sales charge. See Note below.
2. Average annual total returns represent the average annual change in value of
an investment over the specified periods and reflect the current, maximum 4.25%
initial sales charge. See Note below.
3. Distribution rate is based on an annualization of the current 5.5 cent per
share monthly dividend and the offering price of $12.79 on December 31, 1996.
4. Equivalent taxable distribution rate and yield assume the 1996 maximum
combined federal and California state personal income tax bracket of 45.2%,
based on the 39.6% federal income tax rate.
5. Yield, calculated as required by the SEC, is based on the earnings of the
fund's portfolio for the 30 days ended Decem-ber 31, 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, if any, at net asset value.
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.
Performance Summary
Class II
The Franklin California Insured Tax-Free Income Fund's Class II share price, as
measured by net asset value, increased 24.0 cents during the reporting period,
from $12.07 on June 30, 1996, to $12.31 on December 31, 1996. During the
reporting period, the fund paid income distributions totaling 29.5 cents
($0.295) per share.*
At the end of this reporting period, your fund's distribution rate was 4.79%,
based on an annualization of the current monthly dividend of 4.96 cents
($0.0496) per share and the offering price of $12.43 on December 31, 1996.
Distributions will vary based on the earnings of the fund's
GRAPHIC MATERIAL 2 OMITTED - SEE APPENDIX AT END OF DOCUMENT
*Assumes shares were purchased and held for the entire accrual period. Since
dividends accrue daily, your actual distributions will vary depending on the
date you purchased your shares and any account activity during the month. Income
distributions and total return calculations include all accrued income earned by
the fund during the reporting period.
portfolio, and past distributions are not predictive of future trends. This
double tax-free rate is generally higher than the after-tax return on a
comparable taxable investment. For example, if you are in the maximum combined
federal and California state personal income tax bracket of 45.2%, you would
have to earn 8.74% from a taxable investment to match your fund's tax-free
distribution rate.
The fund posted a cumulative total return of +4.53% for the six-month period and
+3.69% for the 12-month period ended December 31, 1996. Cumulative total returns
measure the change in value of an investment, assuming reinvestment of all
distributions, and do not include sales charges. Past performance is not
predictive of future results.
Franklin California Insured
Tax-Free Income Fund - Class II
Dividend Distributions (7/1/96 - 12/31/96)
Dividend
Month per Share
July 4.76 cents+
August 4.93 cents
September 4.93 cents
October 4.96 cents
November 4.96 cents
December 4.96 cents
Total 29.50 cents
+The July distribution consisted of a regular monthly dividend of +4.93 cents
and a fiscal year-end adjustment of -.17 cent to reconcile the 12b-1 fee
differential.
Franklin California Insured Tax-Free Income Fund - Class II
Periods Ended December 31, 1996
Since
Inception
1-Year (5/1/95)
Cumulative Total Return1 3.69% 12.30%
Average Annual Total Return2 1.64% 6.55%
Distribution Rate3 4.79%
Equivalent Taxable Distribution Rate4 8.74%
30-Day Standardized Yield5 4.06%
Equivalent Taxable Yield4 7.41%
1. Cumulative total returns measure the change in value of an investment over
the periods indicated and do 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 returns represent the average annual change in value of
an investment over the specified periods and include the sales charges.
3. Distribution rate is based on an annualization of the current 4.96 cent per
share monthly dividend and the offering price of $12.43 on December 31, 1996.
4. Equivalent taxable distribution rate and yield assume the 1996 maximum
combined federal and California state personal income tax bracket of 45.2%,
based on the 39.6% federal income tax rate.
5. Yield, calculated as required by the SEC, is based on the earnings of the
fund's portfolio for the 30 days ended Decem-ber 31, 1996.
All total return calculations assume reinvestment of dividends and capital
gains, if any, at net asset value. 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.
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 10 years.*
We are pleased to report that the Franklin California Intermediate-Term Tax-Free
Income Fund generated a cumulative total return of +4.34% for the six-month
period, as discussed in the Performance Summary on page 14.
Between June 1996 and the close of this fiscal period, interest rates declined
somewhat. For example, on June 30, yields on 10-year Treasuries were 6.73%,
versus 6.41% on December 31, 1996. The economy continued to grow at a moderate
pace throughout the reporting period, and inflation remained under control.
During the November elections, California's voters approved proposition 218,
which requires voter approval of all new taxes and fee increases. Its potential
effects are still unclear, but the measure will likely result in many court
cases. We don't believe the fund's portfolio has any bonds that will be affected
by this proposition. Furthermore, the fund will not add any new issues without
first obtaining a clear legal opinion on them.
*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.
Portfolio Update
Trading activity in the fund was fairly slow for the six-month period, and no
significant sales took place. Of our new purchases, most were AAA-rated issues
in the 10- to 14-year maturity range. Purchasing issues within this maturity
range allowed us to obtain higher yields for the fund and maintain the weighted
average maturity at approximately eight years -- its level at the start of the
period. The percentage of portfolio assets invested in AAA-rated issues also
increased slightly from 25.9% of long-term investments on June 30, 1996, to
30.0% on December 31, 1996.
As you can see from the table, we remained invested in a broad range of
municipal sectors. We also continued to maintain our conservative management
approach by purchasing "essential service" bonds. Unlike general obligation
bonds, essential service bonds are backed by revenues from hospitals, utilities,
educational institutions and transportation projects, and tend to generate a
stable income stream.
Franklin California Intermediate-Term
Tax-Free Income Fund
Portfolio Breakdown on December 31, 1996
Based on Total Long-Term Investments
% of Total
Long-Term
Sector Investments
Certificates of Participation 25.8%
Tax-Allocation Bonds 18.9%
Other Revenue 13.1%
Utilities 12.8%
Education 8.9%
Housing 6.4%
Special Assessment Bonds 4.2%
Hospitals 3.0%
Marks-Roos Bonds 2.7%
Special Tax-Revenue Bonds 2.4%
Mello-Roos Bonds 0.8%
Pre-Refunded 0.3%
Transportation 0.3%
Health Care 0.2%
Industrial 0.1%
General Obligations 0.1%
For a complete list of portfolio holdings, please see page 38 of this report.
Looking forward, we expect interest rates to fluctuate somewhat, as perceptions
of inflation change, but in the long run, rates should not change much.
California will probably generate fewer new issues compared with the rest of the
country due to unanswered questions left by proposition 218. Nonetheless, we
believe the fund is positioned well to turn in a favorable performance in 1997,
and we will continue to purchase securities based on their credit quality and
yield potential.
GRAPHIC MATERIAL 3 OMITTED - SEE APPENDIX AT END OF DOCUMENT
Performance Summary
The Franklin California Intermediate-Term Tax-Free Income Fund's share price, as
measured by net asset value, increased 19.0 cents during the reporting period,
from $10.67 on June 30, 1996, to $10.86 on December 31, 1996. During the
reporting period, the fund paid income distributions totaling 26.4 cents
($0.264) per share.*
At the end of this reporting period, your fund's distribution rate was 4.75%,
based on an annualization of the current monthly dividend of 4.4 cents ($0.044)
per share and the maximum offering price of $11.11 on December 31, 1996.
Distributions will vary based on the earnings of the fund's portfolio, and past
distributions are not predictive of future trends. This double tax-free rate is
generally higher than the after-tax return on a comparable taxable investment.
For example, if you are in the maximum combined federal and California state
personal income tax bracket of 45.2%, you would have to earn 8.67% from a
taxable investment to match your fund's tax-free distribution rate.
GRAPHIC MATERIAL 4 OMITTED - SEE APPENDIX AT END OF DOCUMENT
*Assumes shares were purchased and held for the entire accrual period. Since
dividends accrue daily, your actual distributions will vary depending on the
date you purchased your shares and any account activity during the month. Income
distributions and total return calculations include all accrued income earned by
the fund during the reporting period.
The fund posted a cumulative total return of +4.34% for the six-month period and
+5.06% for the 12-month period ended December 31, 1996. Total returns measure
the change in value of an investment, assuming reinvestment of all
distributions, and do not include the initial sales charge. Past performance is
not predictive of future results.
Franklin California Intermediate-Term
Tax-Free Income Fund
Dividend Distributions (7/1/96 - 12/31/96)*
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
Total 26.4 cents
*Assumes shares were purchased and held for the entire accrual period. Since
dividends accrue daily, your actual distributions will vary depending on the
date you purchased your shares and any account activity during the month. Income
distributions and total return calculations include all accrued income earned by
the fund during the reporting period.
Franklin California Intermediate-Term Tax-Free Income Fund
Periods Ended December 31, 1996
Since
Inception
1-Year 3-Year (9/23/92)
Cumulative Total Return1 5.06% 16.60% 32.90%
Average Annual Total Return2 2.70% 4.46% 6.32%
Distribution Rate3 4.75%
Equivalent Taxable Distribution Rate4 8.67%
30-Day Standardized Yield5 4.66%
Equivalent Taxable Yield4 8.50%
1. Cumulative total returns measure the change in value of an investment over
the periods indicated and do not include the sales charge. See Note below.
2. Average annual total returns represent the average annual change in value of
an investment over the specified periods and reflect the current, maximum 2.25%
initial sales charge. See Note below.
3. Distribution rate is based on an annualization of the current 4.4 cent per
share monthly dividend and the maximum offering price of $11.11 on December 31,
1996.
4. Equivalent taxable distribution rate and yield assume the 1996 maximum
combined federal and California state personal income tax bracket of 45.2%,
based on the 39.6% federal income tax rate.
5. Yield, calculated as required by the SEC, is based on the earnings of the
fund's portfolio for the 30 days ended Decem-ber 31, 1996.
Note: All total return calculations assume reinvestment of dividends and capital
gains, if any, at net asset value. 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.
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 4.32%. 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.*
Interest rates began to stabilize during the six-month reporting period. For
example, short-term interest rates, as measured by the yield on the one-year
Treasury bill, fluctuated between 5.38% and 5.98% during the reporting period.
During the past six months, we did not make significant changes to the
portfolio's average maturity. It decreased slightly, from 42 days on June 30,
1996, to 32 days on December 31, 1996. The fund's seven-day effective yield,
which assumes compounding of daily dividends, and seven-day annualized yield,
were 3.30% and 3.25%, respectively, on December 31, 1996. This double 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 5.93%
from a taxable investment to match the fund's tax-free yield.
GRAPHIC MATERIAL 5 OMITTED - SEE APPENDIX AT END OF DOCUMENT
*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.
As always, we base our management approach on maintaining a portfolio of
high-quality issues with appropriate liquidity and will continue to emphasize
these qualities. We also intend to maintain an average maturity near our current
range, as we anticipate moderate economic growth in an environment of low
interest rates.
Franklin California Tax-Exempt Money Fund
Periods Ended December 31, 1996
Seven-Day Effective Yield1 3.30%
Seven-Day Annualized Yield 3.25%
Taxable Equivalent Yield2 5.93%
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 December 31, 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 brings the opposite. Past performance is not predictive of
future results.
FRANKLIN CALIFORNIA TAX-FREE TRUST
Statement of Investments in Securities and Net Assets, December 31, 1996
(unaudited)
<TABLE>
<CAPTION>
Face Value
Amount Franklin California Insured Tax-Free Income Fund (Note 1)
Long Term Investments 98.4%
Bonds98.0%
<C> <S> <C>
$ 1,000,000 Alameda COP, Police Building and Equipment Financing Project, MBIA Insured,
Pre-Refunded, 7.25%, 08/01/15 ............................................... $ 1,105,660
2,000,000 Alameda County COP, Municipal Custodial Receipts, Series 1, BIG Insured,
Pre-Refunded, 7.25%, 12/01/07 ............................................... 2,251,360
1,000,000 Alameda County Water District Revenue COP, Water System Project, FGIC
Insured, 6.00%, 06/01/20 .................................................... 1,022,420
10,730,000 Alhambra COP, Police Facilities AD No. 91-1, AMBAC Insured, 6.75%, 09/01/23 .. 11,619,302
1,000,000 Anaheim COP, AMBAC Insured, Pre-Refunded, 6.75%, 10/01/10 .................... 1,104,360
2,000,000 Anaheim Public Financing Authority Revenue, Refunding, Anaheim Electric Utility
Projects, MBIA Insured, 5.625%, 10/01/22 .................................... 1,977,020
3,485,000 Apple Valley USD, COP, MBIA Insured, Pre-Refunded, 6.875%, 09/01/21 .......... 3,908,811
1,985,000 Arcadia GO, USD, Series B, FGIC Insured, 5.875%, 07/01/20 .................... 2,026,248
5,690,000 Arcata Joint Powers Financing Authority Revenue, Tax Allocation, Community
Development Project, Series A, AMBAC Insured, 6.00%, 08/01/23 ............... 5,852,279
Baldy Mesa Water District, COP, Water System Improvement Project,
AMBAC Insured,
760,000 6.40%, 08/01/17........................................................... 803,632
1,170,000 6.45%, 08/01/24 .......................................................... 1,239,287
2,000,000 Barstow RDA, Tax Allocation, Central Redevelopment Project, Series A,
MBIA Insured, 6.25%, 09/01/22 ............................................... 2,101,820
10,775,000 Bay Area Government Association, RDA Revenue, Tax Allocation, Pool A2,
CGIC Insured, 6.60%, 12/15/24 ............................................... 11,734,406
2,995,000 Benicia COP, Refunding, Water System Project, AMBAC Insured, 6.125%, 11/01/17. 3,106,833
5,900,000 Benicia USD, Series A, AMBAC Insured, 6.85%, 08/01/16 ........................ 6,407,046
1,270,000 Berkeley COP, AMBAC Insured, 7.50%, 06/01/19 ................................. 1,343,050
4,400,000 Big Bear Lake Water Revenue, Refunding, FGIC Insured, Pre-Refunded,
6.375%, 04/01/22 ............................................................ 4,861,252
Brea Public Finance Authority Revenue, Tax Allocation, Redevelopment Project,
Series A, MBIA Insured,
1,520,000 7.00%, 08/01/15 .......................................................... 1,672,897
1,550,000 6.75%, 08/01/22 .......................................................... 1,686,896
12,310,000 7.00%, 08/01/23 .......................................................... 13,521,673
3,480,000 Pre-Refunded, 7.00%, 08/01/15 ............................................ 3,915,452
7,390,000 Pre-Refunded, 7.00%, 08/01/23 ............................................ 8,314,711
2,590,000 Buckeye Union School District COP, Capital Projects, MBIA Insured,
5.625%, 12/01/21 ............................................................ 2,577,801
2,155,000 Buellton USD, Series A, MBIA Insured, 6.375%, 07/01/17 ....................... 2,288,395
3,000,000 Burbank PCR, Wastewater Treatment, Series A, FGIC Insured, 5.50%, 06/01/25.... 2,953,200
2,000,000 Burbank RDA, Refunding, Tax Allocation, City Center Redevelopment Project,
Series A, FSA Insured, 5.50%, 12/01/23 ...................................... 1,955,920
$ 665,000 Burbank Waste Disposal Revenue, Series B, AMBAC Insured, 6.00%, 05/01/22 ..... $ 676,717
3,950,000 Calaveras County Water District Revenue, Refunding, COP, Water and Sewer
System Improvement Project, AMBAC Insured, 6.00%, 05/01/16 .................. 4,089,198
1,795,000 Calexico CRDA Revenue, Tax Allocation, Refunding, Merged Central Business and
Residential, CGIC Insured, 5.85%, 08/01/15 .................................. 1,830,003
2,930,000 bCalexico USD, CFD No. 1, Special Tax, Refunding, AMBAC Insured, 5.60%,
09/01/17 .................................................................... 2,926,191
California Educational Facilities Authority Revenue, Pooled Facilities Program,
MBIA Insured,
3,500,000 6.70%, 11/01/09 .......................................................... 3,585,505
1,800,000 7.625%, 11/01/12 ......................................................... 1,879,884
1,000,000 7.00%, 03/01/16 .......................................................... 1,078,960
California Health Facilities Financing Authority Revenue,
3,000,000 Adventist Health Systems West, Series A, MBIA Insured, 7.00%, 03/01/13 ... 3,264,000
5,065,000 Adventist Health Systems West, Series B, MBIA Insured, 6.75%, 03/01/14 ... 5,463,869
3,900,000 Catholic Health Care, Series A, AMBAC Insured, Pre-Refunded, 7.00%, 07/01/06 4,240,041
7,605,000 Centinela Hospital Medical Center, MBIA Insured, Pre-Refunded, 6.50%, 09/01/08 8,494,633
4,000,000 Marin General Hospital, Series A, CGIC Insured, 7.00%, 08/01/15 .......... 4,330,880
11,110,000 San Diego Hospital Association, MBIA Insured, 6.625%, 05/01/19 ........... 11,583,842
2,425,000 San Diego Hospital Association, Series A, MBIA Insured, 6.20%, 08/01/12 .. 2,527,287
4,850,000 San Diego Hospital Association, Series A, MBIA Insured, 6.20%, 08/01/20 .. 5,039,393
3,500,000 Scripps Memorial Hospital, Series A, MBIA Insured, 6.40%, 10/01/12 ....... 3,716,300
3,000,000 Sharp Temecula Hospital, MBIA Insured, 7.05%, 08/01/21 ................... 3,288,450
California HFA Revenue,
5,250,000 Home Mortgage, Series D, MBIA Insured, 6.15%, 08/01/28 ................... 5,249,685
1,315,000 Series A, MBIA Insured, 7.15%, 08/01/11 .................................. 1,396,280
4,100,000 Series A, MBIA Insured, 8.20%, 02/01/20 .................................. 4,271,872
3,450,000 Series A, MBIA Insured, 7.20%, 02/01/26 .................................. 3,637,439
1,815,000 Series B, MBIA Insured, 6.80%, 08/01/11 .................................. 1,921,087
245,000 Series B, MBIA Insured, 8.625%, 08/01/15 ................................. 256,821
6,600,000 Series K, AMBAC Insured, 6.25%, 08/01/27 ................................. 6,675,900
9,460,000 California Public Capital Improvement Financing Authority Revenue, Pooled
Projects, Series B, BIG Insured, 8.10%, 03/01/18 ............................ 9,955,988
1,850,000 California Public School District, Financing Authority Lease Revenue, Refunding,
Southern Kern USD, Series B, FSA Insured, 5.90%, 09/01/26 ................... 1,895,270
California State Department of Water Resources Revenue, Central Valley Project,
Water Systems, MBIA Insured,
5,000,000 Refunding, Series L, 5.50%, 12/01/23 ..................................... 4,889,800
2,500,000 Series J-3, 5.50%, 12/01/22 .............................................. 2,445,825
California State GO,
$ 9,000,000 AMBAC Insured, 6.30%, 09/01/06 ........................................... $ 10,025,100
2,255,000 FGIC Insured, 6.00%, 08/01/19 ............................................ 2,327,746
3,500,000 FGIC Insured, 6.00%, 05/01/20 ............................................ 3,610,495
4,400,000 MBIA Insured, 6.00%, 08/01/16 ............................................ 4,541,944
1,000,000 Various Purposes, MBIA Insured, 6.00%, 10/01/21 .......................... 1,027,250
8,375,000 California State HFA, HMR, Series L, MBIA Insured, 6.40%, 08/01/27 ........... 8,594,844
California State Loan Purchase Authority Revenue, Loan Contract, Series A,
CGIC Insured, Pre-Refunded,
2,000,000 7.75%, 10/01/08 .......................................................... 2,165,260
3,365,000 7.80%, 10/01/18 .......................................................... 3,645,843
3,000,000 California State Public Works, Board Lease Revenue, University of California
Project, Series A, AMBAC Insured, 6.40%, 12/01/16 ........................... 3,207,690
California State University and Colleges, Student Union Revenue, MBIA Insured,
1,310,000 Bakersfield, Series A, 6.30%, 11/01/22 ................................... 1,379,142
2,375,000 San Bernardino, Series B, 6.30%, 02/01/22 ................................ 2,503,678
1,500,000 California State University, Fresno Revenue, Auxiliary Residence Student Project,
MBIA Insured, 6.25%, 02/01/17 ............................................... 1,583,790
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 .................................................................... 6,274,530
Cambria Community Services District Revenue, MBIA Insured,
1,000,000 COP, Wastewater Treatment System Upgrade, 6.90%, 11/01/24 ................ 1,120,680
1,330,000 Water and Wastewater, Refunding, Series A, 6.00%, 05/01/15 ............... 1,380,646
2,485,000 Carpinteria Sanitation District, Capital Facilities Revenue, FGIC Insured, 6.25%,
07/01/14 .................................................................... 2,622,048
Central Coast Water Authority Revenue, State Water Project, Regional Facilities,
AMBAC Insured,
2,500,000 Pre-Refunded, 6.50%, 10/01/14 ............................................ 2,795,575
4,650,000 Pre-Refunded, 6.60%, 10/01/22 ............................................ 5,223,066
595,000 Refunding, Series B, 5.65%, 10/01/11 ..................................... 596,708
620,000 Refunding, Series B, 5.70%, 10/01/12 ..................................... 621,773
1,020,000 Refunding, Series B, 5.80%, 10/01/16 ..................................... 1,022,897
2,800,000 Refunding, Series B, 5.85%, 10/01/22 ..................................... 2,807,924
3,035,000 Central School District, San Bernardino County, AMBAC Insured, 5.60%, 05/01/16 3,031,176
Central Union High School District, Imperial County, Series A, AMBAC Insured,
890,000 5.50%, 08/01/17 .......................................................... 878,092
1,005,000 5.50%, 08/01/18 .......................................................... 991,221
5,000,000 Cerritos Public Financing Authority Revenue, Los Coyotes Redevelopment Project,
Series A, AMBAC Insured, 5.75%, 11/01/22 .................................... 5,047,700
Chico Public Financing Authority Revenue,
$ 815,000 Southeast Chico Redevelopment Project, Series A, FGIC Insured, 6.625%,
04/01/21 .................................................................. $ 870,200
3,000,000 Tax Allocation, Merged Redevelopment Project Area, FSA Insured, 5.375%,
04/01/16 .................................................................. 2,917,380
2,000,000 Chino Basin Regional Financing Authority Revenue, Refunding, Municipal Water
District, Sewer System Project, AMBAC Insured, 6.00%, 08/01/16 .............. 2,072,020
3,590,000 Chino COP, RDA, Refunding, Water System Improvement Project, AMBAC Insured,
6.20%, 09/01/18 ............................................................. 3,776,106
5,795,000 Chino, Ontario, Upland, etc., Water Facilities Authority, COP, Refunding, Agua de
Lejos Projects, Series A, FGIC Insured, 6.75%, 10/01/11 ..................... 5,940,281
2,940,000 Chula Vista Elementary School District COP, MBIA Insured, 6.60%, 08/01/16 .... 3,055,748
3,945,000 Chula Vista Public Finance Authority, Local Agency Revenue, Series 1995-A,
CGIC Insured, 6.125%, 09/02/14 .............................................. 4,168,682
1,500,000 Coachella Valley Recreation and Park District, 1915 Act, Refunding, Reassessment
District No. 94-1, MBIA Insured, 6.20%, 09/02/16 ............................ 1,582,305
1,110,000 Colton Joint USD, CFD, Special Tax, Refunding, Southridge Village, Phase III,
CGIC Insured, 5.90%, 09/01/14 ............................................... 1,120,834
Contra Costa County COP,
1,250,000 Buildings Acquisition Project, AMBAC Insured, 6.70%, 02/01/21 ............ 1,316,063
1,000,000 Public Facilities Corp., BIG Insured, 7.80%, 06/01/08 .................... 1,092,030
2,230,000 Contra Costa Mosquito Abatement District, COP, Refunding, Public Improvements
Project, CGIC Insured, 6.25%, 02/01/06 ...................................... 2,365,651
4,500,000 Covina COP, Housing Revenue, AMBAC Insured, 7.00%, 03/01/17 .................. 4,603,815
7,000,000 Davis Joint USD No. 1, CFD, Special Tax, Refunding, MBIA Insured, 5.50%,
08/15/21 .................................................................... 6,851,740
1,105,000 Delano USD, Series A, CGIC Insured, 6.10%, 05/01/17 .......................... 1,140,493
2,735,000 Desert Hot Springs RDA, Tax Allocation, Refunding, Redevelopment Project No. 1,
Series A, MBIA Insured, 5.375%, 09/01/19 .................................... 2,635,938
4,155,000 Dublin-San Ramon Services District, COP, AMBAC Insured, 7.00%, 12/01/20 ...... 4,536,263
East Bay MUD, Wastewater Treatment System Revenue, AMBAC Insured, Pre-Refunded,
1,000,000 7.125%, 06/01/17 ......................................................... 1,109,150
2,000,000 7.20%, 06/01/20 .......................................................... 2,223,020
East Bay MUD, Water System Revenue,
6,000,000 AMBAC Insured, Pre-Refunded, 6.50%, 06/01/20 ............................. 6,793,740
5,000,000 MBIA Insured, Pre-Refunded, 7.50%, 06/01/18 .............................. 5,604,600
6,900,000 Refunding, FGIC Insured, 6.00%, 06/01/20 ................................. 7,060,701
Eastern Municipal Water and Sewer District Revenue, COP,
1,000,000 FGIC Insured, Pre-Refunded, 6.75%, 07/01/08 .............................. 1,113,340
1,400,000 Refunding, Series A, FGIC Insured, 6.30%, 07/01/20 ....................... 1,454,376
$ 1,000,000 El Centro COP, AMBAC Insured, 6.875%, 06/01/09 ............................... $ 1,027,030
5,960,000 El Cerrito RDA, Tax Allocation, Refunding, Redevelopment Project, Series A,
CGIC Insured, 6.80%, 07/01/19................................................ 6,387,690
El Dorado County Public Agency Financing Authority Revenue, Refunding,
FGIC Insured,
2,250,000 5.50%, 02/15/16 .......................................................... 2,257,268
3,500,000 5.50%, 02/15/21 .......................................................... 3,495,135
6,900,000 Eureka Public Financing Authority Revenue, Tax Allocation, Eureka Redevelopment
Project, CGIC Insured, Pre-Refunded, 7.40%, 11/01/12 ........................ 7,448,274
Fairfield Public Financing Authority Revenue,
2,000,000 Fairfield Redevelopment Project, Series C, CGIC Insured, 5.25%, 08/01/13 . 1,922,880
4,750,000 Municipal Park, ID No. 1, FGIC Insured, 6.30%, 07/01/23 .................. 4,977,573
4,300,000 Refunding, Series B, MBIA Insured, 5.80%, 04/01/23 ....................... 4,366,994
1,265,000 Farmersville USD, Series A, AMBAC Insured, 5.70%, 07/01/18 ................... 1,276,828
2,525,000 Fillmore Public Financing Authority Revenue, Refunding, Central City Redevelopment
Project, Series A, AMBAC Insured, 5.75%, 10/01/16 ........................... 2,583,631
Folsom Public Financing Authority Revenue, Refunding, AMBAC Insured,
2,000,000 6.00%, 10/01/08 .......................................................... 2,118,920
1,000,000 6.00%, 10/01/12 .......................................................... 1,033,600
3,400,000 6.00%, 10/01/19 .......................................................... 3,492,650
5,850,000 Fontana RDA, Tax Allocation, Refunding, Southwest Industrial Park Project, FGIC
Insured, 6.125%, 09/01/25.................................................... 6,094,413
1,000,000 Fresno COP, City Hall Refinancing Project, AMBAC Insured, 6.25%, 08/01/19 .... 1,040,100
2,000,000 Fresno USD, Series B, FSA Insured, 5.875%, 08/01/20 .......................... 2,031,320
7,140,000 Fresno Water System Revenue, Water Remediation Project, Series A, FGIC Insured,
5.875%, 06/01/20 ............................................................ 7,302,506
1,780,000 Fruitvale School District, Series B, MBIA Insured, 6.00%, 08/01/20 ........... 1,822,239
1,000,000 Fulton El Camino Recreational and Park District COP, Series A, CGIC Insured,
Pre-Refunded, 6.375%, 12/01/11............................................... 1,088,490
1,000,000 Glendale Hospital Revenue, Refunding, Adventist Health, Series A, MBIA Insured,
6.75%, 03/01/13 ............................................................. 1,070,960
Glendale RDA, Tax Allocation, Refunding, Central Glendale Redevelopment
Project, AMBAC Insured,
1,500,000 5.50%, 12/01/14 .......................................................... 1,489,785
4,030,000 5.60%, 12/01/16 .......................................................... 4,024,922
4,255,000 5.60%, 12/01/17 .......................................................... 4,249,511
4,490,000 5.60%, 12/01/18 .......................................................... 4,484,073
9,775,000 6.00%, 12/01/20 .......................................................... 10,073,138
2,000,000 Grossmont Hospital District Revenue, La Mesa, Series A, MBIA Insured,
Pre-Refunded, 8.00%, 11/15/17 ............................................... 2,115,020
$ 1,000,000 Hercules COP, Refunding, Capital Improvement Projects, AMBAC Insured, 6.00%,
06/01/15 .................................................................... $ 1,037,610
3,425,000 Hesperia Water District COP, Refunding, Water Facilities Improvement Projects,
FGIC Insured, 7.15%, 06/01/26 ............................................... 3,830,006
Imperial Irrigation District COP,
13,375,000 Electric System Project, MBIA Insured, 6.00%, 11/01/15.................... 13,814,369
5,050,000 Water System Project, AMBAC Insured, 5.75%, 07/01/16 ..................... 5,109,186
2,260,000 Industry, City of, Public Works and Capital Improvement, FGIC Insured,
Pre-Refunded, 6.80%, 07/01/15 ............................................... 2,446,473
8,535,000 Kern County Board of Education COP, Administration Building Financing Project,
MBIA Insured, 6.20%, 02/01/23 ............................................... 8,764,933
Kern County High School District, CGIC Insured, ETM,
1,535,000 6.625%, 08/01/14 ......................................................... 1,727,857
1,400,000 6.625%, 08/01/15 ......................................................... 1,572,970
3,460,000 King City Joint Union High School District, Series A, AMBAC Insured, 6.30%,
08/01/19 .................................................................... 3,618,468
3,080,000 La Mirada RDA, Industrial Commercial Redevelopment Project, Series A, MBIA
Insured, 6.60%, 08/15/21 .................................................... 3,285,867
6,650,000 La Quinta RDA, Tax Allocation, Housing Redevelopment Project Areas No 1 & 2,
MBIA Insured, 6.00%, 09/01/25 ............................................... 6,855,286
Lake Arrowhead Community Services District, COP, Refunding, FGIC Insured,
7,600,000 6.125%, 06/01/05 ......................................................... 8,225,480
14,000,000 6.50%, 06/01/15 .......................................................... 14,949,480
Lake Elsinore Public Financing Authority Revenue, Tax Allocation, Lake Elsinore
Redevelopment Projects,
3,000,000 Series A, CGIC Insured, 5.65%, 09/01/15 .................................. 3,007,860
1,750,000 Series A, CGIC Insured, 5.80%, 09/01/25 .................................. 1,760,483
1,255,000 Series A, FGIC Insured, 6.25%, 02/01/19 .................................. 1,298,323
12,840,000 Series C, FGIC Insured, 6.625%, 02/01/17 ................................. 13,567,900
2,485,000 Lakewood Public Financing Authority, Water Revenue, FGIC Insured, 5.70%,
04/01/16 .................................................................... 2,511,614
2,500,000 Lakewood RDA, Subordinate Tax Allocation, Refunding, Town Center
Redevelopment Project, CGIC Insured, Pre-Refunded, 8.50%, 09/01/13 .......... 2,632,025
3,000,000 Lakewood RDA, Tax Allocation, Refunding, Redevelopment Project No. 1, Series A,
CGIC Insured, 6.50%, 09/01/17 ............................................... 3,216,720
Lancaster RDA, Tax Allocation, MBIA Insured,
1,330,000 Combination Redevelopment Project Areas, Library, 5.75%, 08/01/23 ........ 1,328,125
2,020,000 Combination Redevelopment Project, Fire Protection, 5.75%, 08/01/23 ...... 2,017,152
11,245,000 Refunding, Lancaster Redevelopment Project No. 5, 6.85%, 02/01/19 ........ 12,138,303
Lincoln RDA, Tax Allocation, Local Government Finance Authority Revenue,
AMBAC Insured,
$ 1,500,000 9.00%, 08/01/11 .......................................................... $ 1,602,150
460,000 9.00%, 08/01/12 .......................................................... 490,572
2,425,000 Lincoln USD, CFD No. 1, AMBAC Insured, Pre-Refunded, 6.90%, 09/01/21 ......... 2,727,907
1,250,000 Livermore Public Building COP, AMBAC Insured, 7.05%, 04/01/17 ................ 1,331,038
1,000,000 Local Government Finance Authority Revenue, Refunding, Bunker Hill Project,
AMBAC Insured, Pre-Refunded, 6.75%, 12/01/14 ................................ 1,089,550
Lodi COP,
3,605,000 1996 Public Improvement Financing Project, MBIA Insured, 5.90%, 10/01/16 . 3,709,257
8,800,000 Refunding, Wastewater Treatment Project, AMBAC Insured, 6.70%, 08/01/26 .. 9,744,416
Loma Linda Hospital Revenue, Loma Linda University Medical Center Project,
1,910,000 Refunding, Series B, AMBAC Insured, 7.00%, 12/01/15 ...................... 2,052,524
2,500,000 Series B, MBIA Insured, Pre-Refunded, 7.00%, 12/01/10 .................... 2,791,925
2,500,000 Long Beach RDA, Refunding, Downtown Redevelopment Project, Series A,
AMBAC Insured, Pre-Refunded, 7.75%, 11/01/10 ................................ 2,713,850
3,500,000 Los Angeles Convention and Exhibition Center COP, AMBAC Insured,
Pre-Refunded, 7.00%, 08/15/21 ............................................... 3,885,000
3,000,000 Los Angeles County Capital Assets Leasing Corp., Leasehold Revenue, Refunding,
AMBAC Insured, 6.00%, 12/01/16............................................... 3,083,280
8,050,000 Los Angeles County COP, Correctional Facilities Projects, MBIA Insured,
Pre-Refunded, 6.50%, 09/01/13 ............................................... 8,808,713
5,825,000 Los Angeles County COP, Refunding, San Pedro Peninsula Hospital Project,
AMBAC Insured, 6.25%, 05/01/15 .............................................. 6,051,826
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 2,041,000
1,440,000 Series A, FGIC Insured, Pre-Refunded, 6.75%, 07/01/20 .................... 1,603,210
2,740,000 Series B, FGIC Insured, 6.50%, 07/01/13 .................................. 2,928,950
5,025,000 Series B, FGIC Insured, 6.50%, 07/01/15 .................................. 5,350,670
3,200,000 Los Angeles CRDA, Tax Allocation, Hollywood Redevelopment Project, Series B,
MBIA Insured, 6.10%, 07/01/22................................................ 3,314,496
Los Angeles Department of Water and Power, Electric Plant Revenue,
17,215,000 FGIC Insured, 6.125%, 01/15/33 ........................................... 17,781,201
2,000,000 MBIA Insured, 6.00%, 08/15/32 ............................................ 2,047,620
3,500,000 Refunding, FGIC Insured, 6.00%, 02/01/28 ................................. 3,612,210
6,875,000 Los Angeles Department of Water and Power, Waterworks Revenue, Second Issue,
FGIC Insured, 6.40%, 11/01/31 ............................................... 7,281,038
Los Angeles Harbor Department Revenue, Series B,
$ 3,790,000 AMBAC Insured, 6.60%, 08/01/14 ........................................... $ 4,069,967
2,000,000 AMBAC Insured, 6.60%, 08/01/15 ........................................... 2,109,300
2,500,000 MBIA Insured, 6.20%, 08/01/25 ............................................ 2,626,450
2,000,000 Los Angeles Mortgage Revenue, Refunding, MBIA Insured, Series I, 6.50%,
07/01/22 .................................................................... 2,113,460
Los Angeles Wastewater System Revenue,
1,000,000 FGIC Insured, Pre-Refunded, 6.70%, 08/01/12 .............................. 1,063,380
12,100,000 Refunding, Series A, FGIC Insured, 6.00%, 12/01/18 ....................... 12,366,200
2,000,000 Refunding, Series A, MBIA Insured, 5.70%, 06/01/20 ....................... 1,997,300
3,250,000 Series B, AMBAC Insured, 6.00%, 06/01/22 ................................. 3,325,693
6,130,000 Series B, AMBAC Insured, Pre-Refunded, 7.10%, 06/01/18 ................... 6,664,965
15,000,000 Series D, MBIA Insured, Pre-Refunded, 6.70%, 12/01/21 .................... 16,591,200
4,000,000 Lynwood Public Financing Authority Revenue, Series A, AMBAC Insured, 5.75%,
09/01/18 .................................................................... 4,051,280
6,415,000 Madera County COP, Valley Children's Hospital, MBIA Insured, 5.75%, 03/15/28 . 6,433,988
4,000,000 Madera RDA, Tax Revenue, Refunding, Madera Redevelopment Project Area,
CGIC Insured, 5.80%, 09/01/23 ............................................... 3,994,240
4,500,000 Marysville Hospital Revenue, Fremont Rideout Health Group, AMBAC Insured,
6.30%, 01/01/22.............................................................. 4,712,355
Menlo Park CDA, Tax Allocation, Las Pulgas Community Project, AMBAC Insured,
Pre-Refunded,
13,265,000 6.625%, 10/01/21 ......................................................... 14,952,441
3,095,000 6.70%, 10/01/22 .......................................................... 3,500,352
5,600,000 Mesa Construction Water District COP, Water Project, FGIC Insured, 6.40%,
03/15/18 .................................................................... 5,945,408
6,500,000 Metropolitan Water District, Southern California Waterworks Revenue, Series A,
MBIA Insured, 5.50%, 07/01/25 ............................................... 6,444,490
Modesto COP,
2,000,000 Municipal Improvement, FGIC Insured, Pre-Refunded, 7.30%, 11/01/20 ....... 2,155,440
5,000,000 Water System Improvement Project, AMBAC Insured, 6.25%, 10/01/22 ......... 5,205,350
Modesto Health Facilities Revenue, Memorial Hospital Association, MBIC Insured,
5,565,000 Refunding, Series A, 6.00%, 06/01/18 ..................................... 5,727,220
1,500,000 Series 1991, 6.875%, 06/01/21 ............................................ 1,620,945
Modesto Irrigation District COP,
6,745,000 Crossover Refunding, Geysers Geothermal Power Project, BIG Insured, 5.00%,
10/01/17 .................................................................. 6,205,063
3,000,000 Refunding and Capital Improvements Projects, Series A, MBIA Insured, 6.00%,
10/01/21 .................................................................. 3,047,760
Modesto Irrigation District, Financing Authority Revenue, Domestic Water Project,
AMBAC Insured,
$ 2,000,000 Series A, 6.125%, 09/01/19 ............................................... $ 2,069,480
2,500,000 Series C, 5.75%, 09/01/22 ................................................ 2,507,675
2,000,000 Monrovia RDA, Public Parking Facilities, Lease Revenue, Refunding, Series A,
AMBAC Insured, 5.20%, 04/01/13............................................... 1,933,840
720,000 Montebello USD, COP, Series B, MBIA Insured, 7.25%, 06/01/10 ................. 790,315
3,215,000 Monterey County COP, Refunding, Sheriff's Facilities Project, CGIC Insured,
5.25%, 12/01/17 ............................................................. 3,054,443
Moulton Niguel Water District,
1,420,000 AMBAC Insured, Pre-Refunded, 7.25%, 04/01/16 ............................. 1,574,468
3,310,000 COP, AMBAC Insured, 5.375%, 09/01/13 ..................................... 3,226,257
4,180,000 Refunding, Consolidated Improvement Districts, MBIA Insured, 5.25%, 09/01/13 4,018,192
1,500,000 Mountain View COP, Improvement Financing Authority Revenue, City
Hall/Community Theatre, MBIA Insured, 6.50%, 08/01/16 ....................... 1,595,115
2,535,000 Mountain View School District, Refunding, CFD, Special Tax, Series A, CGIC
Insured, 7.25%, 10/01/11 .................................................... 2,756,534
1,000,000 Mt. Diablo Hospital District Revenue, Series A, AMBAC Insured, Pre-Refunded,
7.00%, 12/01/17 ............................................................. 1,116,770
Mt. Diablo USD, CFD No. 1, Special Tax,
500,000 AMBAC Insured, 6.25%, 08/01/14 ........................................... 525,780
1,000,000 CGIC Insured, 6.00%, 08/01/24 ............................................ 1,030,730
1,000,000 FGIC Insured, Pre-Refunded, 7.05%, 08/01/20 .............................. 1,110,760
1,000,000 Refunding, AMBAC Insured, 5.75%, 08/01/15 ................................ 1,011,000
2,270,000 Refunding, AMBAC Insured, 5.75%, 08/01/16 ................................ 2,294,970
Murrieta Water Public Financing Authority, Special Tax Revenue, Refunding,
Senior Lien, Series A, FSA Insured,
1,235,000 5.60%, 10/01/15 .......................................................... 1,219,365
2,630,000 5.70%, 10/01/21 .......................................................... 2,591,997
2,000,000 National City Joint Powers Authority, Lease Revenue, National City Police Facilities
Project, AMBAC Insured, 6.75%, 10/01/17 ..................................... 2,180,980
North City West School Facilities, Financing Authority, Special Tax, Refunding,
Series B, CGIC Insured,
1,260,000 5.75%, 09/01/15 .......................................................... 1,274,830
2,500,000 6.00%, 09/01/19 .......................................................... 2,582,350
5,000,000 Northern California Power Agency Revenue, Multiple Capital Facilities, Series A,
MBIA Insured, 6.50%, 08/01/12................................................ 5,395,800
Northern California Power Agency Revenue, Refunding, Public Power Hydroelectric
Project No. 1,
$ 3,200,000 AMBAC Insured, Pre-Refunded, 7.50%, 07/01/23 ............................. $ 3,955,264
4,000,000 Series A, MBIA Insured, 5.50%, 07/01/23 .................................. 3,891,280
2,750,000 Series A, MBIA Insured, 5.50%, 07/01/24 .................................. 2,688,978
Northern California Transmission Revenue, California/Oregon Transmission Project,
Series A, MBIA Insured,
2,500,000 6.25%, 05/01/10 .......................................................... 2,656,300
4,000,000 6.50%, 05/01/16 .......................................................... 4,336,400
10,500,000 5.25%, 05/01/20 .......................................................... 10,010,700
18,335,000 6.00%, 05/01/24 .......................................................... 18,658,063
4,000,000 Pre-Refunded, 7.00%, 05/01/10 ............................................ 4,395,600
5,810,000 Norwalk Community Facilities Financing Authority, Lease Revenue, MBIA Insured,
6.90%, 02/01/21 ............................................................. 6,244,181
4,000,000 Oakland Special Revenue, Refunding, Series A, FGIC Insured, 7.60%, 08/01/21 .. 4,284,960
3,940,000 Oceanside Community Development COP, Public Parking Project, CGIC Insured,
Pre-Refunded, 7.875%, 04/01/19............................................... 4,769,252
Oceanside COP,
4,715,000 Corporation Yard Project, AMBAC Insured, Pre-Refunded, 7.30%, 08/01/21 ... 5,445,023
1,000,000 Refunding, Civic Center Project, MBIA Insured, 5.75%, 08/01/15 ........... 1,014,980
5,000,000 Water Use Finance Association of California, Series A, AMBAC Insured, 6.50%,
10/01/17 .................................................................. 5,377,300
10,000,000 Ontario Redevelopment Financing Authority Revenue, Ontario Redevelopment
Project No. 1, MBIA Insured, ETM, 5.80%, 08/01/23 ........................... 10,032,900
Orange County CFD No. 86-1, Special Tax, Rancho Santa Margarita, Series A,
CGIC Insured,
5,000,000 7.30%, 08/15/09 .......................................................... 5,376,950
10,000,000 Pre-Refunded, 7.625%, 07/01/18 ........................................... 10,736,600
Orange County COP, AMBAC Insured,
11,250,000 Civic Center Expansion Project, Pre-Refunded, 6.70%, 08/01/18 ............ 12,544,088
4,770,000 Juvenile Justice Center Facilities, 6.375%, 06/01/11 ..................... 5,017,706
5,000,000 Juvenile Justice Center Facilities, 6.00%, 06/01/17 ...................... 5,131,700
3,500,000 Orange County Financing Authority Revenue, Tax Allocation, Refunding, Series A,
MBIA Insured, 6.50%, 09/01/22 ............................................... 3,709,370
5,200,000 Orange RDA Revenue, Tax Allocation, Refunding, Southwest Redevelopment
Project, Series A, AMBAC Insured, 5.70%, 10/01/23 ........................... 5,192,356
Oroville Public Finance Authority, Tax Allocation Revenue, Oroville Redevelopment
Project No. 1, AMBAC Insured,
1,245,000 5.90%, 09/15/21 .......................................................... 1,273,610
2,890,000 6.10%, 09/15/23 .......................................................... 3,014,212
$ 5,000,000 Oxnard Financing Authority, Solid Waste Revenue, AMBAC Insured, 6.00%,
05/01/16 .................................................................... $ 5,150,700
Oxnard Financing Authority Wastewater Revenue, FGIC Insured,
2,800,000 5.50%, 06/01/14 .......................................................... 2,781,240
1,410,000 5.25%, 06/01/20 .......................................................... 1,335,439
3,315,000 Oxnard Public Facilities Corp. COP, AMBAC Insured, Pre-Refunded, 7.50%,
09/01/06 .................................................................... 3,599,659
Palm Desert Financing Authority Tax Allocation Revenue, Project Area No. 2,
Series A, MBIA Insured,
2,490,000 5.95%, 08/01/24 .......................................................... 2,546,722
1,380,000 5.85%, 08/01/25 .......................................................... 1,400,576
Palm Springs USD,
500,000 Series C, MBIA Insured, 6.125%, 02/01/20 ................................. 519,790
1,000,000 Series D, FGIC Insured, 5.90%, 02/01/21 .................................. 1,020,340
4,750,000 Paramount USD, COP, Master Lease Program, FSA Insured, 6.30%, 09/01/26 ....... 5,009,730
1,130,000 Parlier USD, Series B, AMBAC Insured, 6.00%, 06/01/16 ........................ 1,166,680
1,000,000 Petaluma COP, Refunding, Series A, AMBAC Insured, 5.625%, 08/01/13 ........... 1,011,120
8,000,000 Pico Rivera Public Financing Authority Revenue, Refunding, Water Enterprise
Project, Series A, FGIC Insured, 6.00%, 12/01/17 ............................ 8,247,920
1,000,000 Pinole RDA, Tax Allocation, Pinole Vista Redevelopment Project, Series A,
MBIA Insured, 6.125%, 08/01/17 .............................................. 1,036,250
1,500,000 Pittsburg Public Financing Authority, Wastewater Revenue, FGIC Insured,
Pre-Refunded, 6.80%, 06/01/22 ............................................... 1,670,550
3,745,000 Placer County COP, Jail Kitchen Project, MBIA Insured, 6.90%, 10/01/21 ....... 4,168,260
2,350,000 Placer County Water Agency Revenue, COP, CGIC Insured, 5.90%, 07/01/25 ....... 2,403,439
5,500,000 Pleasant Hill RDA, Tax Allocation, Refunding, Pleasant Hill Commons Project,
CGIC Insured, 6.90%, 07/01/21 ............................................... 6,001,050
2,000,000 Port Hueneme RDA, Tax Allocation, Refunding, Central Community Redevelopment
Project, AMBAC Insured, 5.50%, 05/01/23 ..................................... 1,956,280
Port of Oakland, Revenue, BIG Insured,
1,500,000 Series B, 7.25%, 11/01/16 ................................................ 1,542,720
1,165,000 Series C, Pre-Refunded, 7.25%, 11/01/19 .................................. 1,202,630
Porterville COP, Refunding, AMBAC Insured,
4,935,000 Sewer System and Improvement Project, 6.30%, 10/01/18 .................... 5,221,279
6,075,000 Sewer System Project, 6.30%, 10/01/18 .................................... 6,427,411
2,460,000 Poway RDA, Tax Allocation, Refunding, Parguay Redevelopment Project, FGIC
Insured, 5.75%, 12/15/26 .................................................... 2,466,691
3,000,000 Ramona Municipal Water District COP, Refunding, AMBAC Insured, 7.20%,
10/01/10 .................................................................... 3,303,300
Rancho Cucamonga RDA, Tax Allocation, Refunding, Rancho Redevelopment
Project, Series A, FGIC Insured, Pre-Refunded,
$ 1,215,000 7.75%, 05/01/06 .......................................................... $ 1,256,152
9,690,000 7.70%, 05/01/16 .......................................................... 10,171,012
5,000,000 Redding Electric System Revenue, Refunding, COP, Series A, FGIC Insured,
5.50%, 06/01/11 ............................................................. 5,046,550
3,230,000 Redding Joint Powers Financing Authority, Water Revenue, Series A, AMBAC
Insured, 5.60%, 06/15/13..................................................... 3,252,707
2,120,000 Redding RDA, Tax Allocation, Hilltop Cypress Redevelopment, Series C, CGIC
Insured, 6.00%, 09/01/22..................................................... 2,175,862
2,115,000 Redlands USD, Series B, CGIC Insured, 6.25%, 06/01/19 ........................ 2,216,520
1,000,000 Redondo Beach RDA, Tax Allocation, South Bay Center Redevelopment Project,
FGIC Insured, 8.625%, 05/01/14 .............................................. 1,023,900
2,745,000 Redwood City Public Financing Authority Revenue, Local Agency, Series A,
AMBAC Insured, 6.50%, 07/15/11............................................... 2,929,546
Riverside RDA, Series A,
12,540,000 Lease Revenue, AMBAC Insured, 6.375%, 10/01/23 ........................... 13,347,576
2,000,000 Lease Revenue, AMBAC Insured, 6.50%, 10/01/24 ............................ 2,147,440
2,200,000 Tax Allocation, Merged Redevelopment Project, MBIA Insured, 5.625%, 08/01/23 2,189,374
2,510,000 Rubidoux Community Service District COP, Water System Improvement Project,
AMBAC Insured, 6.20%, 12/01/14 .............................................. 2,627,769
Sacramento Area Flood Control Agency, Subordinated Lien, FGIC Insured,
1,000,000 Capital AD No. 2, 5.80%, 11/01/16 ........................................ 1,022,460
1,475,000 Operation & Maintenance, 5.80%, 11/01/16 ................................. 1,508,129
2,690,000 Operation & Maintenance, 5.90%, 11/01/25 ................................. 2,761,581
11,800,000 Sacramento COP, MBIA Insured, 6.50%, 06/01/15 ................................ 12,409,706
5,920,000 Sacramento County Airport System Revenue, Series A, MBIA Insured, 6.00%,
07/01/17 .................................................................... 6,113,466
Sacramento MUD, Electric Revenue, MBIA Insured,
1,425,000 Refunding, Senior Lien, Series A, 5.75%, 08/15/13 ........................ 1,441,202
4,250,000 Series E, 5.75%, 05/15/22 ................................................ 4,288,888
4,000,000 Series I, 6.00%, 01/01/24 ................................................ 4,123,120
2,600,000 Series X, Pre-Refunded, 7.00%, 07/01/20 .................................. 2,878,772
2,000,000 Sacramento RDA, Tax Allocation, Merged Downtown Redevelopment Project A,
MBIA Insured, 6.50%, 11/01/13 ............................................... 2,135,340
3,500,000 Saddleback Valley USD, Public Financing Authority, Special Tax Revenue,
Refunding, Series A, FSA Insured, 5.65%, 09/01/17 ........................... 3,495,450
5,680,000 San Bernardino County Mortgage Revenue, Refunding, Don Miguel Apartments
Project, MBIA Insured, 6.40%, 03/01/25 ...................................... 5,862,158
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 .......................................................... $ 2,176,002
1,950,000 Series A, CGIC Insured, 5.75%, 10/01/25 .................................. 1,963,767
3,515,000 Southeast Industrial Park, Series F, MBIA Insured, Pre-Refunded, 7.375%,
03/01/14.................................................................. 3,908,258
4,265,000 State College Project No. 4, AMBAC Insured, Pre-Refunded, 7.20%, 09/01/08 4,681,733
2,060,000 State College Project, Series D, FGIC Insured, Pre-Refunded, 7.375%, 09/01/10 2,318,324
5,750,000 ......San Bernardino Municipal Water and Sewer Department, COP, FGIC Insured,
6.25%, 02/01/17 ............................................................. 5,996,733
2,382,000 San Bernardino RDA, Capital Appreciation, Series B, AMBAC Insured, 7.70%,
01/10/09 .................................................................... 4,100,232
2,000,000 San Buenaventura COP, Water Project, AMBAC Insured, Pre-Refunded, 7.50%,
10/01/20 .................................................................... 2,260,060
2,250,000 San Buenaventura Public Facilities, Financing Authority Lease Revenue, Refunding,
CGIC Insured, 5.75%, 06/01/14 ............................................... 2,292,188
2,000,000 San Diego Community College District, COP, Series 1991, MBIA Insured, 6.50%,
12/01/12 .................................................................... 2,127,880
2,375,000 San Diego County COP, Inmate Reception Center and Cooling, MBIA Insured,
6.25%, 08/01/24 ............................................................. 2,504,224
1,650,000 San Diego IDR, San Diego Gas & Electric, Custodial Receipts, Series A, AMBAC
Insured, 6.40%, 09/01/18..................................................... 1,745,816
San Diego Mortgage Revenue, Refunding, University Canyon North, Series A,
MBIA Insured,
285,000 5.125%, 07/01/03 .......................................................... 284,453
3,105,000 5.75%, 07/01/25 ........................................................... 3,070,628
San Diego RDA, Tax Allocation, Center City Redevelopment, Series B, AMBAC Insured,
3,000,000 5.375%, 09/01/15 .......................................................... 2,952,930
3,000,000 5.40%, 09/01/16 ........................................................... 2,960,430
San Francisco BART District, Sales Tax Revenue, FGIC Insured,
2,580,000 6.60%, 07/01/12 ........................................................... 2,800,564
2,000,000 5.50%, 07/01/15 ........................................................... 1,997,660
San Francisco City and County Airports Commission, International Airport Revenue,
Second Series, FGIC Insured,
6,900,000 Issue 5, 6.50%, 05/01/24 ................................................. 7,366,095
3,500,000 Issue 8A, 6.25%, 05/01/20 ................................................ 3,646,930
6,400,000 Issue 9B, 6.00%, 05/01/25 ................................................ 6,602,048
2,105,000 Issue 11, 6.00%, 05/01/11 ................................................ 2,171,455
San Francisco City and County Sewer Revenue, AMBAC Insured,
$ 2,000,000 Refunding, 6.00%, 10/01/11 ............................................... $ 2,086,420
1,500,000 Series A, Pre-Refunded, 7.25%, 10/01/15 .................................. 1,563,465
2,370,000 Series B, Pre-Refunded, 7.25%, 10/01/15 .................................. 2,470,275
1,000,000 San Gabriel USD, COP, School Facilities Development Program, Series A, FSA
Insured, 6.00%, 09/01/15 .................................................... 1,034,920
3,000,000 San Jacinto USD, COP, Refunding Project, AMBAC Insured, 6.50%, 10/01/23 ...... 3,210,930
8,740,000 San Jose Financing Authority Revenue, Convention Project, CGIC Insured, 6.40%,
09/01/17 .................................................................... 9,217,204
San Jose RDA, Tax Allocation, Merged Area Redevelopment Project, Pre-Refunded,
1,250,000 Series A, AMBAC Insured, 6.90%, 08/01/11 ................................. 1,300,038
3,235,000 Series B, MBIA Insured, 6.625%, 08/01/11 ................................. 3,494,576
1,260,000 San Luis Water Districts Revenue, COP, Refunding & Capital Improvement Project,
AMBAC Insured, 5.50%, 11/01/16 .............................................. 1,236,047
10,495,000 San Marcos Public Facilities Authority Revenue, Tax Allocation, Refunding,
Series A, CGIC Insured, 5.50%, 08/01/23 ..................................... 10,336,001
2,750,000 San Mateo County Joint Powers Financing Authority, Lease Revenue, San Mateo
County Health Care Center, Series A, FSA Insured, 5.75%, 07/15/22 ........... 2,757,920
San Mateo County Transit District Revenue, Sales Tax, Series A, MBIA Insured,
4,100,000 6.70%, 06/01/10 .......................................................... 4,300,941
6,700,000 6.50%, 06/01/20 .......................................................... 7,010,344
San Ramon COP,
5,110,000 Central Park Expansion Project, CGIC Insured, Pre-Refunded, 7.20%, 02/01/25 6,023,361
12,070,000 Refunding, Capital Improvement Project, AMBAC Insured, 7.05%, 03/01/21 ... 13,273,862
5,935,000 Sanger Public Financing Authority Revenue, Utility System Financing, Series A,
AMBAC Insured, 5.70%, 01/01/22 .............................................. 5,927,047
1,000,000 Sanger USD, Series A, CGIC Insured, 5.60%, 08/01/14 .......................... 1,002,650
3,250,000 Santa Ana COP, Refunding, Parking Facilities Project, Series A, AMBAC Insured,
6.125%, 06/01/16 ............................................................ 3,393,878
1,000,000 Santa Ana Financing Authority Water Revenue, MBIA Insured, 6.125%, 09/01/24 .. 1,041,780
5,000 Santa Ana HMR, Series A, FGIC Insured, 8.875%, 06/01/17 ...................... 5,172
Santa Barbara COP, Refunding, AMBAC Insured,
3,575,000 Municipal Improvement Program, 6.15%, 08/01/17 ........................... 3,714,854
6,500,000 Water System Improvement Project, 6.70%, 04/01/27 ........................ 7,084,350
1,555,000 Santa Clara County COP, Board of Education Partners, Administration Building
Project, Series A, MBIA Insured, 6.00%, 04/01/25 ............................ 1,599,551
4,500,000 Santa Clara County COP, Refunding, Capital Project I, AMBAC Insured, 6.25%,
10/01/16 .................................................................... 4,683,780
1,000,000 Santa Clara County Transit District, Sales Tax Revenue, Series A, AMBAC Insured,
6.25%, 06/01/21 ............................................................. 1,025,600
Santa Clara Electric Revenue, Series A, MBIA Insured,
$ 1,350,000 6.50%, 07/01/21 .......................................................... $ 1,445,891
1,500,000 5.75%, 07/01/24 .......................................................... 1,505,265
900,000 Santa Clara RDA, Tax Allocation, Refunding, Bayshore North Project, AMBAC
Insured, 7.50%, 06/01/08..................................................... 927,756
Santa Cruz County COP,
1,475,000 Capital Facilities Project, MBIA Insured, 6.70%, 09/01/20 ................ 1,600,626
2,675,000 Sub-Joint Wastewater Treatment Project, AMBAC Insured, 6.20%, 09/01/19 ... 2,803,614
3,600,000 Santa Cruz Hospital Revenue, Dominican Santa Cruz, Series A, MBIA Insured,
7.00%, 12/01/13 ............................................................. 3,740,832
11,830,000 Santa Fe Springs RDA, Tax Allocation, Redevelopment Project, Series A, MBIA
Insured, 6.40%, 09/01/22 .................................................... 12,627,460
Santa Fe Springs, Series A,
900,000 Public Financing Authority, Water Revenue, MBIA Insured, 5.90%, 05/01/21 . 921,564
1,190,000 Public Financing Authority, Water Revenue, MBIA Insured, 5.90%, 05/01/26 . 1,213,514
2,750,000 RDA Revenue, Tax Allocation, AMBAC Insured, Pre-Refunded, 7.25%, 08/01/14 3,012,185
29,500,000 Santa Margarita/Dana Point Authority Revenue, Refunding, Improvement Districts 3,
3A, 4 and 4A, Series B, MBIA Insured, 5.75%, 08/01/20 ....................... 29,692,635
3,675,000 Santa Maria COP, Local Water System, Refunding, FGIC Insured, 5.50%, 08/01/13 3,670,847
1,525,000 Santa Monica Community College District, Series B, AMBAC Insured, 5.75%,
07/01/20 .................................................................... 1,541,729
Santa Rosa High School District,
1,000,000 FGIC Insured, 5.90%, 05/01/16 ............................................ 1,024,370
4,450,000 FGIC Insured, 5.50%, 05/01/20 ............................................ 4,414,934
1,050,000 Refunding, CGIC Insured, 5.75%, 05/01/18 ................................. 1,064,259
2,000,000 Santa Rosa Wastewater Service Facilities District, Refunding & Improvement,
AMBAC Insured, 6.00%, 07/02/15 .............................................. 2,136,800
Santa Rosa Water Revenue, Series A,
2,500,000 FGIC Insured, Pre-Refunded, 7.00%, 09/01/16 .............................. 2,728,500
1,115,000 Refunding, FGIC Insured, 5.25%, 09/01/12 ................................. 1,090,481
2,000,000 Subregional Wastewater Project, AMBAC Insured, Pre-Refunded, 6.50%,
09/01/16 2,192,060
3,450,000 Sebastopol CDA, Tax Allocation, Community Development Project, CGIC Insured,
6.85%, 12/01/20 ............................................................. 3,756,947
Selma Public Financing Authority Revenue, Series A, MBIA Insured,
145,000 5.80%, 09/15/11 .......................................................... 147,098
125,000 5.80%, 09/15/12 .......................................................... 126,391
2,400,000 5.875%, 09/15/22 ......................................................... 2,420,712
5,000,000 Simi Valley Public Financing Authority Revenue, Refunding, MBIA Insured, 5.75%,
09/01/23 .................................................................... 5,027,200
$ 1,325,000 Sonoma CDA, COP, Refunding, Sonoma Creek Senior Housing Project, AMBAC
Insured, 6.75%, 02/01/13 .................................................... $ 1,412,543
2,400,000 Sonoma Valley USD, FSA Insured, 6.00%, 07/15/21 .............................. 2,473,584
9,700,000 South Coast Air Quality Management District Revenue, Refunding, Building Corp.,
MBIA Insured, 5.50%, 08/01/14 ............................................... 9,634,816
South Orange County Public Financing Authority Revenue, Refunding, Special
Tax, Senior Lien, Series A, MBIA Insured,
13,500,000 6.20%, 09/01/13 ........................................................... 14,085,765
3,250,000 6.00%, 09/01/18 ........................................................... 3,324,490
2,500,000 Southern California Public Power Authority, Power Project Revenue, San Juan
Unit 3, Series A, MBIA Insured, 5.00%, 01/01/20 ............................. 2,289,250
Southern California Public Power Authority Revenue, MBIA Insured,
10,000,000 Refunding, Transmission Project, Sub-Series A, Subordinated Lien, 5.25%,
07/01/20 .................................................................. 9,470,800
3,820,000 Sub-Crossover Refunding, Southern Transmission Project, Subordinated Lien,
5.50%, 07/01/20 ........................................................... 3,765,450
13,750,000 Sub-Crossover Refunding, Transmission Project, 5.75%, 07/01/21 ........... 13,824,388
5,000,000 Southgate Public Financing Authority Revenue, Tax Allocation, Southgate
Redevelopment Project No. 1, AMBAC Insured, 5.875%, 09/01/24 ................ 5,089,400
3,750,000 Stanton RDA, Tax Allocation, Refunding, Stanton Community Development Project,
AMBAC Insured, 5.45%, 12/01/17 .............................................. 3,676,462
Stockton COP, AMBAC Insured,
6,500,000 Refunding, Wastewater System Project, 5.75%, 09/01/23 .................... 6,561,100
4,000,000 Wastewater Facility, Pre-Refunded, 7.40%, 09/01/10 ....................... 4,265,840
1,640,000 Stockton-East Water District COP, Series A, AMBAC Insured, Pre-Refunded,
7.30%, 04/01/20 ............................................................. 1,820,858
4,260,000 Suisun City RDA, Tax Allocation, Refunding, Suisun City Redevelopment Project,
MBIA Insured, 5.625%, 10/01/13 .............................................. 4,280,191
800,000 Sulphur Springs USD, COP, Series 1991, AMBAC Insured, 7.20%, 02/01/21 ........ 851,591
5,485,000 Sunnyvale RDA, Parking Revenue, Refunding, AMBAC Insured, 6.50%, 10/01/22 .... 5,793,146
2,785,000 Sunnyvale RDA, Tax Allocation, Refunding, Central Core Project, AMBAC Insured,
6.50%, 10/01/22 ............................................................. 2,941,461
4,000,000 Susanville Public Financing Authority Revenue, Series A, AMBAC Insured, 6.30%,
09/01/17 .................................................................... 4,190,840
1,335,000 Taft COP, Sewer Facilities Improvement Project, CGIC Insured, Pre-Refunded,
7.25%, 08/01/15 ............................................................. 1,429,637
Tahoe-Truckee Joint USD, FGIC Insured,
5,000,000 Series A, 6.00%, 09/01/17 ................................................ 5,166,350
3,620,000 Series B, 5.95%, 09/01/20 ................................................ 3,723,930
2,000,000 Tehachapi Water and Sewer Revenue, Refunding, MBIA Insured, 6.75%, 11/01/20 .. 2,215,480
$ 3,390,000 Thousand Oaks RDA, Tax Allocation, Refunding, Thousand Oaks Blvd.
Redevelopment, MBIA Insured, 5.375%, 12/01/25 ............................... $ 3,276,468
Tracy CFD, Special Tax, Refunding, Senior Series A, FSA Insured,
4,160,000 5.65%, 09/01/15 .......................................................... 4,177,596
5,480,000 5.70%, 09/01/20 .......................................................... 5,489,973
Tri-City Hospital District Revenue, MBIA Insured,
2,350,000 6.00%, 02/01/22 .......................................................... 2,384,662
5,000,000 Pre-Refunded, 7.90%, 02/01/18 ............................................ 5,322,350
2,925,000 Truckee-Donner Water System Improvement Project, MBIA Insured, Pre-Refunded,
6.75%, 11/15/21 ............................................................. 3,276,701
4,000,000 Tulare County COP, Capital Improvement Project, Refunding, Public Facilities
Corp., BIG Insured, Pre-Refunded, 8.10%, 11/01/07 ........................... 4,226,480
1,500,000 Tulare Sewer Revenue, Refunding, AMBAC Insured, 5.70%, 11/15/18 .............. 1,509,194
1,500,000 Turlock Auxiliary Organization Revenue, COP, California State University,
Stanislaus Foundation, MBIA Insured, 5.875%, 06/01/22 ....................... 1,526,730
7,125,000 Turlock Irrigation District Revenue, Refunding, Series A, MBIA Insured, 5.75%,
01/01/18 .................................................................... 7,188,127
6,200,000 Union City CRDA, Tax Allocation Revenue, Community Redevelopment Project,
AMBAC Insured, 5.75%, 10/01/22 .............................................. 6,237,385
University of California Revenue, Multiple Purpose Project, Series A, Pre-Refunded,
3,750,000 AMBAC Insured, 6.75%, 09/01/23 ........................................... 4,069,387
1,000,000 MBIA Insured, 6.90%, 09/01/15 ............................................ 1,042,910
Upland COP,
3,985,000 Refunding, Police Building Project, AMBAC Insured, 6.60%, 08/01/16 ....... 4,319,501
2,385,000 Water System Improvement Project, FGIC Insured, 6.60%, 08/01/16 .......... 2,585,196
1,355,000 Vacaville Public Financing Authority Revenue, Tax Allocation, Refunding, Vacaville
Redevelopment Project, MBIA Insured, 6.35%, 09/01/22 ........................ 1,408,183
Vallejo Revenue, Water Improvement Project,
12,500,000 Refunding, Series A, FSA Insured, 5.875%, 05/01/26 ....................... 12,773,624
4,855,000 Series B, FGIC Insured, Pre-Refunded, 6.50%, 11/01/14 .................... 5,454,690
2,200,000 Walnut Valley Water District COP, Badillo Grand Transmission Project, FGIC
Insured, 6.125%, 02/01/18.................................................... 2,268,881
1,800,000 Watsonville Solid Waste Revenue, MBIA Insured, 6.50%, 05/15/16 ............... 1,903,680
5,640,000 Waugh School District, Special Tax, Corona/Ely CFD No. 1, AMBAC Insured,
5.80%, 09/01/26 ............................................................. 5,679,592
West Sacramento Financing Authority Revenue,
4,185,000 MBIA Insured, 6.25%, 09/01/16 ............................................ 4,446,270
4,500,000 Water System Improvement Project, FGIC Insured, 5.50%, 08/01/15 .......... 4,443,120
1,685,000 Water System Improvement Project, FGIC Insured, 5.50%, 08/01/24 .......... 1,659,067
$ 3,340,000 West Sacramento RDA, Tax Allocation, West Sacramento Redevelopment Project,
MBIA Insured, 6.25%, 09/01/21 ............................................... $ 3,475,804
2,340,000 Whittier Solid Waste Revenue, Refunding, Series A, AMBAC Insured, 5.375%,
08/01/14 .................................................................... 2,317,606
2,000,000 Whittier Water Revenue, Series A, AMBAC Insured, 5.625%, 06/01/17 ............ 2,008,500
1,285,000 William S. Hart Joint School Authority, Special Tax Revenue, Refunding, CFD,
CGIC Insured, 6.60%, 09/01/18 ............................................... 1,396,307
750,000 Windsor Joint Powers Financing Authority, Wastewater Revenue, Refunding,
Series A, AMBAC Insured, 6.125%, 12/15/12 ................................... 787,838
-------------
Total Bonds (Cost $1,545,095,104) ...................................... 1,629,086,355
-------------
Zero Coupon Bonds0.4%
28,405,000 San Bernardino County SFMR, Series A, GNMA Secured, ETM, (original accretion
rate 7.90%), 05/01/22 (Cost $4,831,066 )..................................... 6,082,931
-------------
Total Long Term Investments (Cost $1,549,926,170)....................... 1,635,169,286
-------------
aShort Term Investments0.2%
2,200,000 Irvine Ranch Water District, Consolidated District Nos. 105, 250 and 290, Daily
VRDN and Put, 5.00%, 08/01/16 ............................................... 2,200,000
400,000 Tustin 1915 Act, Reassessment District No 95-2, Series A, Daily VRDN and Put,
5.00%, 09/02/13 ............................................................. 400,000
-------------
Total Short Term Investments (Cost $2,600,000).......................... 2,600,000
-------------
Total Investments (Cost $1,552,526,170)98.6% ....................... 1,637,769,286
Other Assets and Liabilities, Net1.4% .............................. 23,623,489
-------------
Net Assets100.0% ................................................... $1,661,392,775
=============
At December 31, 1996, the net unrealized appreciation based on
the cost of investments for income tax purposes of
$1,552,646,493 was as follows:
Aggregate gross unrealized appreciation for all investments in which there was an
excess of value over tax cost ............................................... $ 86,699,474
Aggregate gross unrealized depreciation for all investments in which there was an
excess of tax cost over value ............................................... (1,576,681)
-------------
Net unrealized appreciation ................................................ $ 85,122,793
=============
</TABLE>
PORTFOLIO ABBREVIATIONS:
1915 Act - Improvement Bond Act of 1915
AD - Assessment District
AMBAC - American Municipal Bond Assurance Corp.
BART - Bay Area Rapid Transit
BIG - Bond Investors Guaranty Insurance Co.
CDA - Community Development Agency
CFD - Community 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
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, December 31, 1996
(unaudited)
<TABLE>
<CAPTION>
Face Value
Amount Franklin California Intermediate-Term Tax-Free Income Fund (Note 1)
Long Term Investments98.0%
ABAG Finance Authority of Nonprofit Corps. COP,
<C> <S> <C>
$ 480,000 5.50%, 06/01/03 ................................................................ $ 492,456
940,000 5.75%, 08/01/03 ................................................................ 968,416
1,255,000 Partner North County Health Project, 5.50%, 03/01/06 ........................... 1,271,102
ABAG Finance Corp. COP, ABAG XXVI,
100,000 Refunding, Series A, 5.90%, 06/01/02 ........................................... 103,254
100,000 Series B, 6.40%, 10/01/03 ...................................................... 105,574
Alameda County COP,
100,000 Capital Projects, Series 1992, 6.25%, 06/01/06 ................................. 105,811
395,000 Series 1994, 5.70%, 04/01/02 ................................................... 411,811
420,000 Series 1994, 5.80%, 04/01/03 ................................................... 440,752
440,000 Series 1994, 5.90%, 04/01/04 ................................................... 464,574
Atascadero USD, COP, Measure B, Capital Project, Series B,
220,000 5.20%, 08/01/03 ................................................................ 220,112
200,000 5.30%, 08/01/04 ................................................................ 200,114
Auburn COP, Refunding, Civic Center Project,
65,000 5.10%, 09/01/99 ................................................................ 65,187
65,000 5.30%, 09/01/00 ................................................................ 65,467
70,000 5.45%, 09/01/01 ................................................................ 70,911
75,000 5.60%, 09/01/02 ................................................................ 76,337
80,000 5.70%, 09/01/03 ................................................................ 81,633
80,000 5.75%, 09/01/04 ................................................................ 81,579
Bakersfield Central District Revenue, Development Agency, Tax Allocation, Refunding,
Downtown Bakersfield Redevelopment,
295,000 6.00%, 04/01/01 ................................................................ 302,266
310,000 6.10%, 04/01/02 ................................................................ 319,182
330,000 6.20%, 04/01/03 ................................................................ 341,316
350,000 6.30%, 04/01/04 ................................................................ 363,531
100,000 Bakersfield Hospital Revenue, Bakersfield Memorial Hospital Project, Series A,
5.70%, 01/01/00 ................................................................. 102,113
California Educational Facilities Authority Revenue, Refunding, Pooled College
and University Financing, Series B,
1,000,000 5.80%, 06/01/02 ................................................................ 1,033,590
1,105,000 5.90%, 06/01/03 ................................................................ 1,147,819
100,000 California Health Facilities Financing, San Diego Hospital Association, Series B,
MBIA Insured, 5.60%, 08/01/03 ................................................... 105,552
California State Public Works, Board Lease Revenue, Department of Corrections,
250,000 Calpatria State Prison, Imperial County, Series A, 6.125%, 09/01/04 ............ 265,930
1,000,000 Coalinga State Prison, Series B, MBIA Insured, 5.50%, 12/01/08 ................. 1,027,560
750,000 Refunding, State Prisons, Series A, 5.00%, 12/01/01 ............................ 762,668
1,000,000 California Statewide CDA, COP, California Lutheran Homes, 5.375%, 11/15/06 ....... 1,006,610
California Statewide CDA Revenue COP,
$ 200,000 Refunding, Health Facilities, Barton Memorial Hospital, Series B, 5.70%, 12/01/00 $ 203,628
450,000 Refunding, Health Facilities, Barton Memorial Hospital, Series B, 6.40%, 12/01/05 463,329
865,000 St. Joseph Health System Group, 6.00%, 07/01/06 ................................ 933,768
585,000 California Statewide Communities Development Corp. COP, Pacific Homes, Series A,
5.50%, 04/01/04 ................................................................. 598,250
350,000 Campbell COP, Refunding, Civic Center Project, 5.60%, 10/01/03 ................... 359,839
200,000 Carson RDA Project, Area No. 1, Refunding, 6.10%, 10/01/02 ....................... 208,808
100,000 Clovis COP, Water System Improvement Project, AMBAC Insured, 5.90%, 03/01/03 ..... 107,112
Coalinga Public Financing Authority Revenue,
455,000 Series A, MBIA Insured, 5.10%, 08/01/04 ........................................ 464,719
1,405,000 Series B, 6.00%, 09/15/03 ...................................................... 1,425,696
Colton GO, Joint USD, CFD, Special Tax, Southridge Village, Phase III, Refunding,
FSA Insured,
425,000 5.65%, 09/01/09 ................................................................ 431,107
450,000 5.75%, 09/01/10 ................................................................ 456,773
Commerce Joint Powers Financing Authority, Water Facilities, Lease Revenue,
Refunding, Series A,
340,000 5.50%, 10/01/02 ................................................................ 345,814
360,000 5.625%, 10/01/03 ............................................................... 366,318
470,000 5.75%, 10/01/04 ................................................................ 475,212
Compton Sewer Revenue,
120,000 5.40%, 07/01/98 ................................................................ 121,328
125,000 5.60%, 07/01/99 ................................................................ 127,374
130,000 5.70%, 07/01/00 ................................................................ 133,377
140,000 5.80%, 07/01/01 ................................................................ 144,393
150,000 5.90%, 07/01/02 ................................................................ 155,606
155,000 6.00%, 07/01/03 ................................................................ 161,578
165,000 6.10%, 07/01/04 ................................................................ 172,653
175,000 6.20%, 07/01/05 ................................................................ 183,943
185,000 6.30%, 07/01/06 ................................................................ 194,415
Concord RDA, Tax Allocation, Central Concord Redevelopment Project, Refunding,
Sub-Series A,
625,000 5.50%, 07/01/02 ................................................................ 627,044
655,000 5.625%, 07/01/03 ............................................................... 658,341
500,000 Contra Costa County MFHR, Byron Park Project, Series C, 6.00%, 07/20/03 .......... 516,885
Danville Financing Authority Revenue, Sycamore Valley, Reassessment District No. 93-2,
305,000 5.40%, 09/02/01 ................................................................ 307,092
480,000 5.60%, 09/02/02 ................................................................ 486,216
230,000 5.70%, 09/02/03 ................................................................ 233,411
940,000 5.80%, 09/02/04 ................................................................ 955,585
$ 100,000 Desert Hospital District Revenue COP, Desert Hospital Corp., CGIC Insured, 6.25%,
07/01/03 ........................................................................ $ 108,520
2,000,000 Dublin COP, Refunding, Civic Center Project, AMBAC Insured, 5.625%, 02/01/10 ..... 2,006,280
920,000 Encinitas Union School District COP, Measure B, Capital Projects, 5.20%, 09/01/03 931,279
Fontana COP, Refunding, Police Facilities Project, Series 1993,
330,000 5.00%, 04/01/01 ................................................................ 326,753
350,000 5.00%, 04/01/02 ................................................................ 344,281
365,000 5.10%, 04/01/03 ................................................................ 358,102
1,150,000 Foster City Public Financing Authority Revenue, Community Development Project,
Series A, 5.60%, 09/01/03 ....................................................... 1,183,971
1,000,000 Fresno Joint Powers Financing Authority, Local Agency Revenue, Refunding, Series A,
6.20%, 09/02/03 ................................................................. 1,012,930
300,000 Garden Grove COP, Bahia Village/Emerald Isle Project, FSA Insured, 5.20%, 08/01/03 309,921
Garden Grove GO, CDA, Tax Allocation, Refunding, Garden Grove Community Project,
1,000,000 5.00%, 10/01/99 ................................................................ 1,003,980
1,425,000 5.40%, 10/01/04 ................................................................ 1,434,719
Glendale Parking Facilities, Joint Powers Authority Revenue, Series A,
215,000 5.10%, 03/01/01 ................................................................ 212,611
255,000 5.20%, 03/01/02 ................................................................ 251,588
125,000 5.30%, 03/01/03 ................................................................ 123,060
750,000 Goleta Water District Revenue COP, Refunding, Goleta Reclamation Project, FGIC
Insured, 5.50%, 12/01/08 ........................................................ 770,670
3,935,000 Hesperia Public Financing Authority Revenue, Series A, 5.80%, 10/01/03 ........... 4,013,621
Hollister RDA, Tax Allocation, Hollister Community Development Project, Series 1994,
525,000 5.35%, 10/01/03 ................................................................ 515,078
550,000 5.45%, 10/01/04 ................................................................ 538,417
585,000 5.55%, 10/01/05 ................................................................ 571,504
Imperial COP, Refunding,
865,000 Wastewater System Program, Series B, 5.40%, 10/15/06 ........................... 874,083
1,250,000 Water System Program, Series A, 5.40%, 10/15/06 ................................ 1,263,125
Imperial County Local Transportation Authority, Sales Tax Revenue, Series 1993,
490,000 5.50%, 05/01/04 ................................................................ 486,467
515,000 5.50%, 05/01/05 ................................................................ 507,533
1,000,000 Inland Empire Solid Waste Financing Authority Revenue, Landfill Improvement
Financing Project, Series B, FSA Insured, 6.25%, 08/01/11 ....................... 1,058,240
1,500,000 Lake Elsinore Public Financing Authority, Tax Allocation Revenue, Lake Elsinore
Redevelopment Project, Series A, CGIC Insured, 5.40%, 09/01/08 .................. 1,509,150
La Palma Community Development Commission, Tax Allocation, Refunding, La Palma
Community Development Project No. 1,
125,000 5.20%, 06/01/00 ................................................................ 125,456
130,000 5.40%, 06/01/01 ................................................................ 131,105
La Palma Community Development Commission, Tax Allocation, Refunding, La Palma
Community Development Project No. 1, (cont.)
$ 135,000 5.50%, 06/01/02 ................................................................ $ 136,372
145,000 5.60%, 06/01/03 ................................................................ 146,699
150,000 5.70%, 06/01/04 ................................................................ 151,977
160,000 5.80%, 06/01/05 ................................................................ 162,325
560,000 La Quinta RDA, Tax Allocation, Housing Redevelopment Project, Areas No. 1 and 2,
MBIA Insured, 5.40%, 09/01/07 ................................................... 577,819
Lancaster RDA, Tax Allocation, Refunding,
35,000 Central Business District Redevelopment, 5.00%, 08/01/98 ....................... 35,067
35,000 Central Business District Redevelopment, 5.125%, 08/01/99 ...................... 35,003
35,000 Central Business District Redevelopment, 5.25%, 08/01/00 ....................... 34,976
40,000 Central Business District Redevelopment, 5.375%, 08/01/01 ...................... 39,926
40,000 Central Business District Redevelopment, 5.50%, 08/01/02 ....................... 39,866
45,000 Central Business District Redevelopment, 5.60%, 08/01/03 ....................... 44,827
45,000 Central Business District Redevelopment, 5.70%, 08/01/04 ....................... 44,807
50,000 Central Business District Redevelopment, 5.70%, 08/01/05 ....................... 49,431
50,000 Fox Field Redevelopment Project Area, 5.00%, 08/01/98 .......................... 50,095
55,000 Fox Field Redevelopment Project Area, 5.125%, 08/01/99 ......................... 55,004
55,000 Fox Field Redevelopment Project Area, 5.25%, 08/01/00 .......................... 54,962
60,000 Fox Field Redevelopment Project Area, 5.375%, 08/01/01 ......................... 59,889
65,000 Fox Field Redevelopment Project Area, 5.50%, 08/01/02 .......................... 64,782
65,000 Fox Field Redevelopment Project Area, 5.60%, 08/01/03 .......................... 64,750
70,000 Fox Field Redevelopment Project Area, 5.70%, 08/01/04 .......................... 69,699
75,000 Fox Field Redevelopment Project Area, 5.70%, 08/01/05 .......................... 74,147
990,000 Lemon Grove MFHR, Refunding, Hillside Terrace Apartments, 5.375%, 01/01/19 ....... 1,009,117
Los Angeles County COP, Insured Health Clinic, Series E,
40,000 4.60%, 12/01/99 ................................................................ 39,869
45,000 4.75%, 12/01/00 ................................................................ 44,887
45,000 4.85%, 12/01/01 ................................................................ 44,862
45,000 4.95%, 12/01/02 ................................................................ 44,838
Los Angeles County Transport Commission COP, Series B,
100,000 5.90%, 07/01/00 ................................................................ 103,979
200,000 6.00%, 07/01/01 ................................................................ 209,992
2,000,000 Los Angeles County Wastewater Systems Revenue, Refunding, Series D, FGIC Insured,
5.375%, 11/01/06 ................................................................ 2,051,360
100,000 Los Angeles Judgement Obligation Bonds, Series A, 5.00%, 08/01/01 ................ 102,622
Los Angeles MFHR, Refunding, Series G, FSA Insured,
185,000 4.90%, 01/01/02 ................................................................ 185,485
235,000 4.90%, 07/01/02 ................................................................ 235,670
205,000 5.00%, 01/01/03 ................................................................ 205,627
Los Angeles MFHR, Refunding, Series G, FSA Insured, (cont.)
$ 245,000 5.00%, 07/01/03 ................................................................ $ 245,804
220,000 5.10%, 01/01/04 ................................................................ 220,766
260,000 5.10%, 07/01/04 ................................................................ 260,959
600,000 Los Angeles Municipal Improvement Corp., Lease Revenue, Refunding, Central Library
Project, Series B, 4.875%, 06/01/01 ............................................. 598,440
1,000,000 Los Angeles USD, COP, Refunding, Multiple Property Project, FSA Insured, 5.00%,
11/01/04 ........................................................................ 1,000,460
565,000 Lynwood Public Financing Authority Revenue, Water Systems Improvement Project,
6.15%, 06/01/08 ................................................................. 576,707
515,000 Madera COP, Refunding, Madera Community Hospital, 5.10%, 03/01/03 ................ 514,423
Madera RDA, Tax Revenue, Refunding, Madera Redevelopment Project, CGIC Insured,
175,000 5.15%, 09/01/02 ................................................................ 180,082
185,000 5.25%, 09/01/03 ................................................................ 191,170
195,000 5.35%, 09/01/04 ................................................................ 202,293
540,000 Merced Irrigation District COP, Water Facilities Project, 6.125%, 11/01/03 ....... 572,135
715,000 Merced Public Financing Authority, Local Agency Revenue, Tax Allocation, Series A,
5.00%, 12/01/04 ................................................................. 697,204
Mid-Peninsula Regional Open Space District COP, Special District Association
Finance Corp., Series 1993,
510,000 5.10%, 09/01/02 ................................................................ 514,447
530,000 5.20%, 09/01/03 ................................................................ 535,300
700,000 Modesto Irrigation District, Financing Authority Revenue, Domestic Water Project,
Series C, AMBAC Insured, 5.50%, 09/01/08 ........................................ 722,162
100,000 Mojave GO, Water Agency, Improvement, District M, Morongo Basin, ETM, 6.20%,
09/01/01 ........................................................................ 107,709
100,000 Morgan Hill RDA, Tax Allocation, Refunding, 5.70%, 03/01/01 ...................... 101,599
Mountain View Shoreline Regional Park, Community Tax Allocation, Series A,
335,000 5.00%, 08/01/02 ................................................................ 332,578
785,000 5.10%, 08/01/03 ................................................................ 778,492
540,000 5.20%, 08/01/04 ................................................................ 534,989
100,000 Mt. Diablo Hospital District Revenue, Series A, AMBAC Insured, 5.10%, 12/01/03 ... 102,567
500,000 New Haven USD, COP, Refunding, 5.30%, 07/01/01 ................................... 513,015
300,000 Newark USD, COP, Crossover Refunding, 5.75%, 09/01/02 ............................ 304,860
500,000 North City West School Facilities Financing Authority, Special Tax, Refunding, Series B,
CGIC Insured, 5.625%, 09/01/08 .................................................. 515,710
1,745,000 Oakland USD, Alameda County COP, Refunding, 5.00%, 09/15/99 ...................... 1,742,697
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.......... 1,056,120
1,500,000 Orange County COP, Recovery, Refunding, Series A, MBIA Insured, 6.00%, 07/01/08 .. 1,621,665
$ 800,000 Orange County Development Agency, Tax Allocation, Refunding, Santa Ana Heights
Project Area, 5.90%, 09/01/04 ................................................... $ 802,360
Orange County Local Transportation Authority, Sales Tax Revenues,
500,000 First Senior Measure M, 6.00%, 02/15/06 ........................................ 539,610
1,000,000 Second Senior Measure M, 4.70%, 02/15/05 ....................................... 986,040
500,000 Orange County MFHR, Villa Santiago Rehabilitation Project, FNMA Secured, 5.60%,
10/01/27 ........................................................................ 504,005
855,000 Palm Desert Financing Authority, Lease Revenue, Blythe County Administrative
Project, 6.375%, 08/01/11 ....................................................... 861,558
1,715,000 Paramount RDA, Tax Allocation, Refunding, Redevelopment Project, Area No. 1,
6.05%, 08/01/05 ................................................................. 1,807,421
Paso Robles Union School District COP,
1,635,000 5.75%, 08/01/03 ................................................................ 1,702,869
300,000 Measure D, Capital Projects, Phase III, 5.75%, 08/01/02 ........................ 310,071
Pismo Beach Public Financing Authority Revenue, Series 1993,
45,000 6.25%, 09/15/01 ................................................................ 45,499
50,000 6.40%, 09/15/02 ................................................................ 50,582
50,000 6.50%, 09/15/03 ................................................................ 50,581
55,000 6.55%, 09/15/04 ................................................................ 55,607
1,335,000 Pleasant Hill RDA, RMR, Refunding, 5.40%, 02/01/05 ............................... 1,365,598
Rialto RDA, Tax Allocation, Industrial Redevelopment, Refunding, Sub-Areas A & B,
Series A,
270,000 5.40%, 09/01/02 ................................................................ 271,806
280,000 5.50%, 09/01/03 ................................................................ 282,148
Riverside County Asset Leasing Corp., Leasehold Revenue, Riverside County
Hospital Project, Series A,
200,000 5.90%, 06/01/02 ................................................................ 208,130
200,000 6.00%, 06/01/04 ................................................................ 209,340
1,000,000 Riverside County Housing Authority, MFHR, Brandon Place Apartments, Series B,
FNMA Secured, 5.625%, 07/01/29 .................................................. 996,000
1,000,000 Sacramento MUD, Electric Revenue, Series E, 5.25%, 05/15/03 ...................... 1,017,760
San Bernardino City USD, COP, Refunding, Series 1994,
1,030,000 4.625%, 05/01/02 ............................................................... 998,987
1,185,000 4.75%, 05/01/03 ................................................................ 1,148,443
2,000,000 San Bernardino County COP, Refunding, Medical Center Financing Project, 6.00%,
08/01/09 ........................................................................ 2,067,740
150,000 San Bernardino County Mortgage Revenue, Refunding, Don Miguel Apartments
Project, MBIA Insured, 6.00%, 09/01/03 .......................................... 155,810
San Clemente 1915 Act, Refunding, AD No. 85-1,
$ 415,000 5.00%, 09/02/02 ................................................................ $ 414,768
435,000 5.10%, 09/02/03 ................................................................ 434,726
460,000 5.20%, 09/02/04 ................................................................ 459,678
San Diego County COP, Children's Center Project,
100,000 5.50%, 04/01/99 ................................................................ 100,762
100,000 6.00%, 10/01/02 ................................................................ 100,995
395,000 San Diego Mortgage Revenue, Refunding, Mariners Cove, Series B-1, 5.125%, 09/01/03 394,202
100,000 San Diego Port Facilities Revenue, Refunding, National Steel & Shipbuilding Co.,
6.60%, 12/01/02 ................................................................. 104,196
San Francisco City and County RDA, Mortgage Revenue,
300,000 Hotel Tax Revenue, CGIC Insured, 5.80%, 07/01/01 ............................... 316,803
245,000 Hotel Tax Revenue, CGIC Insured, 5.90%, 07/01/02 ............................... 261,386
30,000 Refunding, Series A, MBIA Insured, 6.125%, 07/01/02 ............................ 30,005
750,000 San Gorgonio Memorial Health Care District, Health Facility Revenue, Insured,
6.375%, 06/01/08 ................................................................ 788,483
400,000 San Joaquin County COP, General Hospital Project, 5.90%, 09/01/03 ................ 416,912
300,000 San Jose Financing Authority Revenue, Refunding, Convention Center Project,
Series C, 5.75%, 09/01/03 ....................................................... 312,750
600,000 San Juan USD, COP, Gold River Elementary School Project, 5.65%, 04/01/03 ......... 601,044
San Ramon COP, Capital Improvements Project,
85,000 5.20%, 03/01/01 ................................................................ 86,645
90,000 5.30%, 03/01/02 ................................................................ 92,109
95,000 5.40%, 03/01/03 ................................................................ 97,592
100,000 5.50%, 03/01/04 ................................................................ 103,089
105,000 5.60%, 03/01/05 ................................................................ 108,599
985,000 Santa Barbara RDA, Tax Allocation, Central City Redevelopment Project, 6.00%,
03/01/03 ........................................................................ 1,011,359
100,000 Santa Monica Parking Authority, Lease Revenue, Refunding, 6.00%, 07/01/03 ........ 105,424
Sebastopol COP, Refunding, Series 1994,
200,000 5.50%, 06/01/03 ................................................................ 202,352
215,000 5.60%, 06/01/04 ................................................................ 217,844
240,000 5.70%, 06/01/05 ................................................................ 243,502
Selma Public Financing Authority Revenue, Series A, MBIA Insured,
100,000 5.25%, 09/15/02 ................................................................ 102,483
115,000 5.50%, 09/15/04 ................................................................ 118,036
120,000 5.60%, 09/15/05 ................................................................ 123,162
125,000 5.65%, 09/15/06 ................................................................ 128,078
135,000 5.70%, 09/15/07 ................................................................ 138,093
140,000 5.70%, 09/15/08 ................................................................ 142,734
Selma Public Financing Authority Revenue, Series A, MBIA Insured, (cont.)
$ 150,000 5.75%, 09/15/09 ................................................................ $ 152,675
155,000 5.75%, 09/15/10 ................................................................ 157,244
1,500,000 bShafter Joint Powers Financing Authority, Lease Revenue, Community Correctional
Facility Project, Series A, 5.50%, 01/01/06 ..................................... 1,506,315
100,000 Shasta Joint Powers Financing Authority, Lease Revenue, Courthouse Improvement
Project, Series A, 5.80%, 06/01/00 .............................................. 102,847
50,000 Solano Beach COP, City Hall Project, 5.80%, 10/01/02 ............................. 52,222
20,000 Solano Beach COP, Justice Facility and Public Building Project, Refunding, 5.10%,
10/01/99 ........................................................................ 20,237
South Gate Public Financing Authority Water Revenue, Refunding, Series A,
FGIC Insured,
995,000 5.35%, 10/01/07 ................................................................ 1,022,741
1,040,000 5.45%, 10/01/08 ................................................................ 1,070,826
South San Francisco Capital Improvements Financing Authority Revenue, Refunding,
South San Francisco Conference Center,
195,000 5.70%, 09/01/02 ................................................................ 199,037
205,000 5.80%, 09/01/03 ................................................................ 209,859
215,000 5.90%, 09/01/04 ................................................................ 220,700
100,000 Southern California Rapid Transit District Revenue, Special Benefit, AD No. A2,
5.80%, 09/01/01 ................................................................. 103,949
Sunline Transport Agency COP, Transport Finance Corp., Series B,
450,000 5.50%, 07/01/03 ................................................................ 463,581
445,000 5.75%, 07/01/06 ................................................................ 460,072
100,000 Susanville Public Financing Authority Revenue, Series A, AMBAC Insured, 5.90%,
09/01/02 ........................................................................ 106,151
Tahoe City PUD, COP, Capital Facilities Project, Series B,
290,000 6.05%, 06/01/01 ................................................................ 299,112
835,000 6.15%, 06/01/02 ................................................................ 866,329
545,000 6.30%, 06/01/04 ................................................................ 569,836
Tehachapi Cummings County Water District Revenue COP, Capital Improvement
Project, MBIA Insured,
280,000 5.50%, 08/01/04 ................................................................ 293,936
300,000 5.60%, 08/01/05 ................................................................ 314,873
320,000 5.75%, 08/01/06 ................................................................ 336,810
600,000 Temecula RDA Revenue, Tax Allocation, Temecula Redevelopment Project No. 1,
Series A, 5.40%, 02/01/04 ....................................................... 601,817
370,000 Temecula Valley USD, Series E, CGIC Insured, 5.65%, 09/01/07 ..................... 387,779
Templeton USD, COP, Measure C, Capital Projects, Series A, Phase III,
375,000 5.00%, 03/01/03 ................................................................ 374,778
580,000 5.00%, 03/01/05 ................................................................ 571,950
$ 100,000 Torrance USD, COP, Series A, 5.85%, 10/01/99 ..................................... $ 101,297
200,000 Travis USD, COP, Foxboro Elementary School Construction Project, 6.30%, 09/01/02 . 212,445
Trinity County PUD, COP, Refunding, Electric District Facilities, Series 1993,
340,000 5.80%, 04/01/01 ................................................................ 345,697
360,000 5.90%, 04/01/02 ................................................................ 367,257
380,000 6.00%, 04/01/03 ................................................................ 388,868
100,000 Tuolumne County COP, Multiple Facilities Project, 5.80%, 06/01/98 ................ 100,902
Ventura USD, COP, Series A,
305,000 5.90%, 04/01/04 ................................................................ 313,926
320,000 6.00%, 04/01/05 ................................................................ 329,337
340,000 6.10%, 04/01/06 ................................................................ 350,791
365,000 6.20%, 04/01/07 ................................................................ 375,581
385,000 6.30%, 04/01/08 ................................................................ 396,122
410,000 6.40%, 04/01/09 ................................................................ 421,807
Watsonville RDA, Tax Allocation, Watsonville Redevelopment Project, Series 1993,
510,000 6.00%, 08/01/02 ................................................................ 510,167
540,000 6.10%, 08/01/03 ................................................................ 540,177
-------------
Total Long Term Investments (Cost $103,937,509) ............................ 106,426,195
-------------
aShort Term Investments1.6%
Irvine Ranch Water District, Daily VRDN and Put,
400,000 DATES, Consolidated Bonds, Series C, 5.00%, 10/01/10 ........................... 400,000
400,000 District Nos. 105, 250, and 290, 5.00%, 01/01/21 ............................... 400,000
900,000 Orange County COP, Various Sanitation Districts Nos. 1-3, 5-7, 11, 13 and 14, Capital
Improvement Program 1990-92, Series A, Daily VRDN and Put, 5.00%, 08/01/15 ...... 900,000
-------------
Total Short Term Investments (Cost $1,700,000) ............................. 1,700,000
-------------
Total Investments (Cost $105,637,509)99.6% ............................. 108,126,195
Other Assets and Liabilities, Net0.4% .................................. 425,105
-------------
Net Assets100.0% ....................................................... $108,551,300
=============
At December 31, 1996, the net unrealized appreciation based on the
cost of investments for income tax purposes of $105,637,509 was
as follows:
Aggregate gross unrealized appreciation for all investments in which there was an
excess of value over tax cost ................................................... $ 2,588,139
Aggregate gross unrealized depreciation for all investments in which there was an
excess of tax cost over value ................................................... (99,453)
-------------
Net unrealized appreciation..................................................... $ 2,488,686
=============
</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 Authority/Agency
CFD - Community Facilities District
CGIC - Capital Guaranty Insurance Co.
COP - Certificate of Participation
DATES - Demand Adjustable Tax-Exempt Securities
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).
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, December 31, 1996
(unaudited)
<TABLE>
<CAPTION>
Face Value
Amount Franklin California Tax-Exempt Money Fund (Note 1)
Investments 99.9%
<C> <S> <C>
$ 428,000 aABAG Revenue, Pooled Projects, Series 1987, Weekly VRDN and Put, 4.1569%,
04/01/97 ....................................................................... $ 428,000
1,000,000 aAlameda County MFMR, Refunding, Series A, Weekly VRDN and Put, 4.05%, 05/15/15 1,000,000
1,355,000 Alameda County Transportation Authority, Sales Tax Revenue, FGIC Insured,
4.75%, 05/01/97 ................................................................ 1,359,103
3,000,000 aAnaheim COP, 1993 Partnership Project, Refunding, AMBAC Insured, Weekly VRDN
and Put, 3.90%, 08/01/19 ....................................................... 3,000,000
5,300,000 aAnaheim COP, Police Facilities Refinancing Project, Refunding, AMBAC Insured,
Weekly VRDN and Put, 3.90%, 08/01/08 ........................................... 5,300,000
2,700,000 aBig Bear Lake Industrial Revenue, Southwest Gas Corp. Project, Series A, Weekly
VRDN and Put, 4.00%, 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
2,720,000 aButte County Housing Authority MFR, Pine Tree Apartments Project, Weekly VRDN
and Put, 4.10%, 12/01/10 ....................................................... 2,720,000
aCalifornia Health Facilities Financing Authority Revenue,
3,600,000 Catholic Health Care, Series B, MBIA Insured, Weekly VRDN and Put, 4.00%,
07/01/16 ................................................................... 3,600,000
4,650,000 Catholic Health Care, Series C, MBIA Insured, Weekly VRDN and Put, 4.00%,
07/01/20 ................................................................... 4,650,000
1,500,000 Catholic Health Care, Series D, MBIA Insured, Weekly VRDN and Put, 4.00%,
07/01/21 ................................................................... 1,500,000
2,500,000 Children's Hospital, MBIA Insured, Weekly VRDN and Put, 4.00%, 11/01/21 ... 2,500,000
2,800,000 Pool Program, Weekly VRDN and Put, 4.00%, 09/01/20 ........................ 2,800,000
9,200,000 Refunding, Catholic West Facility, Series B, MBIA Insured, Weekly VRDN and Put,
4.00%, 07/01/05 .......................................................... 9,200,000
2,100,000 Refunding, Catholic West Facility, Series D, MBIA Insured, Weekly VRDN
and Put, 4.00%, 07/01/18 ................................................... 2,100,000
1,950,000 Refunding, St. Joseph Health System, Series B, Daily VRDN and Put, 5.10%,
07/01/13 ................................................................... 1,950,000
8,800,000 Refunding, Sutter Health, Series C, FSA Insured, Daily VRDN and Put, 5.10%,
07/01/22 ................................................................... 8,800,000
1,955,000 Santa Barbara Cottage Hospital, Series B, Weekly VRDN and Put, 3.75%,
09/01/05 ................................................................... 1,955,000
1,300,000 St. Francis Medical Center, Series F, MBIA Insured, Weekly VRDN and Put,
3.90%, 07/01/10 ............................................................ 1,300,000
5,000,000 St. Francis Memorial Hospital, ACES, Series B, Daily VRDN and Put, 4.05%,
11/01/19 ................................................................... 5,000,000
6,800,000 St. Joseph Health System, Series A, Daily VRDN and Put, 5.00%, 07/01/13 ... 6,800,000
4,200,000 Sutter Health, Series A, Daily VRDN and Put, 5.00%, 03/01/20 .............. 4,200,000
aCalifornia PCFA, PCR,
$ 4,700,000 Occidental Geo/Santa Fe Geothermal, Monthly VRDN and Weekly Put, 3.50%,
09/01/13 ................................................................... $ 4,700,000
1,900,000 Refunding, Shell Oil Co. Project, Series A, Daily VRDN and Put, 5.00%, 10/01/06 1,900,000
900,000 Refunding, Shell Oil Co. Project, Series A, Daily VRDN and Put, 5.00%, 10/01/07 900,000
1,300,000 Refunding, Shell Oil Co. Project, Series A, Daily VRDN and Put, 5.00%, 10/01/08 1,300,000
4,500,000 Refunding, Shell Oil Co. Project, Series A, Daily VRDN and Put, 5.00%, 10/01/09 4,500,000
2,500,000 Refunding, Shell Oil Co. Project, Series A, Daily VRDN and Put, 5.00%, 10/01/10 2,500,000
7,000,000 Refunding, Shell Oil Co. Project, Series B, Daily VRDN and Put, 5.00%, 10/01/11 7,000,000
4,000,000 Refunding, Shell Oil Co. Project, Series C, Daily VRDN and Put, 5.00%, 11/01/00 4,000,000
1,000,000 Reynolds Metals Co. Project, Weekly VRDN and Put, 4.25%, 12/01/15 ......... 1,000,000
10,100,000 Southern California Edison Co., Series A, Daily VRDN and Put, 4.70%, 02/28/08 10,100,000
1,700,000 Southern California Edison Co., Series B, Daily VRDN and Put, 4.70%, 02/28/08 1,700,000
4,100,000 Southern California Edison Co., Series C, Daily VRDN and Put, 4.70%, 02/28/08 4,100,000
400,000 Southern California Edison Co., Series D, Daily VRDN and Put, 4.70%, 02/28/08 400,000
aCalifornia PCFA, Resource Recovery Revenue, Daily VRDN and Put,
9,500,000 Atlantic Richfield Co. Project, Series A, 4.85%, 12/01/24 .................. 9,500,000
200,000 OMS Equity, Stanislaus Project, 5.05%, 12/01/17 ............................ 200,000
aCalifornia PCFA, Solid Waste Disposal Revenue, Series A, Weekly VRDN and Put,
1,200,000 Colmac Energy Project, 4.00%, 12/01/16 ..................................... 1,200,000
2,000,000 Shell Oil Co., Martinez Project, 4.80%, 10/01/24 ........................... 2,000,000
19,500,000 aCalifornia Public Capital Improvements Financing Authority Revenue, Pooled Project,
Series C, Quarterly VRDN and Put, 3.80%, 06/01/28 .............................. 19,500,000
5,000,000 California School Cash Reserve Program Authority, Pooled Project, Series A,
4.75%, 07/02/97 ................................................................ 5,021,600
2,900,000 aCalifornia State Economic Development Financing Authority Revenue, Refunding,
KQED, Inc. Project, Weekly VRDN and Put, 4.00%, 04/01/20 ....................... 2,900,000
California State RAN,
28,250,000 Series A, 4.50%, 06/30/97 .................................................. 28,323,009
2,200,000 aSeries C-1, Weekly VRDN and Put, 4.00%, 06/30/97 .......................... 2,200,000
aCalifornia Statewide Communities Development Authority Revenue, COP, Refunding,
12,005,000 Apartment Development Revenue, Subseries A-6, Weekly VRDN and Put,
3.90%, 05/15/25 ............................................................ 12,005,000
2,366,000 House Ear Institution, Daily VRDN and Put, 4.80%, 12/01/18 ................. 2,366,000
3,500,000 St. Joseph Health Systems, Weekly VRDN and Put, 4.00%, 07/01/08 ............ 3,500,000
aCalifornia Statewide Communities Development Corp. Revenue, Series C, Weekly
VRDN and Put,
2,550,000 American Kleaner, 4.00%, 12/01/19 .......................................... 2,550,000
1,700,000 Karcher Property Project, 4.00%, 12/01/19 .................................. 1,700,000
800,000 aCarlsbad MFHR, Refunding, La Costa Apartments Project, Series A, Weekly VRDN
and Put, 3.95%, 06/01/11 ....................................................... 800,000
$ 2,445,000 aChico MFMR, Webb Homes Project, Monthly VRDN and Weekly Put, 3.50%, 01/01/10 .. $ 2,445,000
aConcord MFMR, Weekly VRDN and Put,
8,400,000 Arcadian Facility, Series A, 4.05%, 07/15/18 ............................... 8,400,000
500,000 Bel Air Apartments, Issue A, 4.15%, 12/01/16 ............................... 500,000
4,270,000 aContra Costa County Housing Authority, MFMR, Lakeshore Facility, Series A,
FNMA Secured, Weekly VRDN and Put, 4.05%, 11/15/12 ............................. 4,270,000
aDuarte RDA, COP, Weekly VRDN and Put,
1,000,000 Johnson Duarte Project, Series B, 3.95%, 12/01/14 .......................... 1,000,000
400,000 Piken Duarte Partnership, Series A, 3.95%, 12/01/14 ........................ 400,000
East Bay MUD, TECP,
1,200,000 3.55%, 01/15/97 ........................................................... 1,200,000
8,000,000 3.60%, 01/16/97 ........................................................... 8,000,000
800,000 3.40%, 03/11/97 ........................................................... 800,000
700,000 aEscondido MFHR, Morning View Terrace, Series A, Weekly VRDN and Put, 4.00%,
02/15/07 ....................................................................... 700,000
aFoothill/Eastern Transportation Corridor Agency, Califorinia Toll Road Revenue,
Weekly VRDN and Put,
15,400,000 Series B, 4.00%, 01/02/35 .................................................. 15,400,000
5,000,000 Series C, 3.90%, 01/02/35 .................................................. 5,000,000
10,000,000 Series E, 3.95%, 01/02/35 .................................................. 10,000,000
1,000,000 aFresno MFHR, Refunding, Heron Pointe Apartments, Series A, Weekly VRDN and
Put, 4.15%, 06/01/07 ........................................................... 1,000,000
1,180,000 aIndependent Cities Lease Finance Authority Revenue, Pooled Projects, Weekly
VRDN and Put, 4.00%, 06/01/98 .................................................. 1,180,000
aIrvine 1915 Act, Daily VRDN and Put,
1,000,000 AD 89-10, 5.00%, 09/02/15 .................................................. 1,000,000
3,288,000 AD 95-12, Series A, 5.00%, 09/02/21 ....................................... 3,288,000
aIrvine Ranch Water District, Daily VRDN and Put,
1,000,000 Consolidated District Nos. 105, 140, 240, and 250, 5.00%, 01/01/21 ........ 1,000,000
6,300,000 Consolidated District Nos. 105, 140, 240, and 250, 5.00%, 04/01/33 ........ 6,300,000
1,600,000 Consolidated District Nos. 105, 250 and 290, 5.00%, 08/01/16 .............. 1,600,000
3,300,000 Consolidated Improvement Districts, 4.85%, 06/01/15 ....................... 3,300,000
6,650,000 COP, Capital Improvement Project, 5.00%, 08/01/16 ......................... 6,650,000
300,000 ID No. 282, Series A, 4.85%, 11/15/13 ..................................... 300,000
1,600,000 ID No. 284, Series A, 4.85%, 11/15/13 ..................................... 1,600,000
1,700,000 Refunding, Consolidated Bonds, Series A, 4.85%, 11/15/13 .................. 1,700,000
2,100,000 Refunding, Consolidated District Nos. 102, 103, 105 and 106, 5.00%, 09/01/06 2,100,000
1,000,000 Refunding, DATES, Consolidated Bonds, Series B, 4.85%, 10/01/99 ........... 1,000,000
1,700,000 Refunding, DATES, Consolidated Bonds, Series B, 4.85%, 10/01/04 ........... 1,700,000
1,600,000 Refunding, DATES, Consolidated Bonds, Series B, 4.85%, 10/01/09 ........... 1,600,000
aKern County COP, Kern Public Facilities Project, Weekly VRDN and Put,
$ 2,200,000 Series A, 4.00%, 08/01/06 ................................................. $ 2,200,000
400,000 Series C, 4.00%, 08/01/06 ................................................. 400,000
500,000 Series D, 4.00%, 08/01/06 ................................................. 500,000
900,000 aLancaster RDA, MFHR, Westwood Park Apartments, Series 1985-K, Weekly VRDN
and Put, 4.00%, 12/01/07 ....................................................... 900,000
2,500,000 aLivermore MFMR, Park, Series A, FNMA Secured, Weekly VRDN and Put, 4.05%,
08/01/18 ....................................................................... 2,500,000
400,000 aLos Angeles County COP, ACES, Los Angeles County Museum of Art, Series B,
Weekly VRDN and Put, 3.10%, 11/01/05 ......................................... 400,000
aLos Angeles County Housing Authority, MFHR, Weekly VRDN and Put,
1,400,000 Harbor Cove Project, Series E, 4.00%, 10/01/06 ............................ 1,400,000
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, 3.95%, 10/01/04 ............. 100,000
aLos Angeles County Pension Obligation, Refunding, AMBAC Insured, Weekly
VRDN and Put,
2,500,000 Series A, 3.90%, 06/30/07 ................................................. 2,500,000
6,600,000 Series B, 3.90%, 06/30/07 ................................................. 6,600,000
3,500,000 Series C, 3.90%, 06/30/07 ................................................. 3,500,000
29,200,000 Los Angeles County TRAN, Series A, 4.50%, 06/30/97 ............................ 29,294,324
1,200,000 aLos Angeles County Transport Commission, Sales Tax Revenue, Refunding,
Series A, FGIC Insured, Weekly VRDN and Put, 3.90%, 07/01/12 ................... 1,200,000
8,000,000 Los Angeles County USD, TRAN, Series A, 4.50%, 06/30/97 ....................... 8,026,585
aLos Angeles CRDA, COP, Weekly VRDN and Put,
1,000,000 Baldwin Hill Park, 3.70%, 12/01/14 ........................................ 1,000,000
400,000 Broading Spring Center Program, 4.10%, 07/01/12 ........................... 400,000
aLos Angeles MFHR, Weekly VRDN and Put,
3,400,000 Casden Project, Series K, 3.55%, 07/01/10 ................................. 3,400,000
1,200,000 Lucas Studios Project, Series D, 4.05%, 12/01/21 .......................... 1,200,000
2,400,000 Masselin Manor, 4.05%, 07/01/15 ........................................... 2,400,000
18,000,000 aMetropolitan Water District, Southern California Waterworks Revenue, Refunding,
Series A, AMBAC Insured, Weekly VRDN and Put, 4.00%, 06/01/23 .................. 18,000,000
3,500,000 aMoorpark MFR, Refunding, Le Club Apartments Project, Series A, Weekly VRDN
and Put, 4.05%, 11/01/15 ....................................................... 3,500,000
aOntario MFR, Weekly VRDN and Put,
1,900,000 Park Centre Partners Project, Series A, 4.055%, 08/01/07 .................. 1,900,000
6,700,000 Refunding, Rental Housing, Series A, 4.33%, 03/01/18 ...................... 6,700,000
1,830,000 Refunding, Rental Housing, Series B, 4.33%, 03/01/18 ...................... 1,830,000
1,190,000 aOntario RDA, MFHR, Daisy XX Association, Ltd. Project, Weekly VRDN and Put,
4.00%, 11/01/04 ................................................................ 1,190,000
aOrange County Apartment Development Revenue, Weekly VRDN and Put,
$ 1,600,000 Issue I, Park Ridge, 4.15%, 11/01/08 ...................................... $ 1,600,000
100,000 Jessy L. Frost Project, Issue B, 4.25%, 03/01/09 .......................... 100,000
9,250,000 Refunding, The Lakes Projects, Series A, 4.15%, 12/01/06 .................. 9,250,000
3,000,000 Vista Verde Apartments, 4.35%, 08/01/18 ................................... 3,000,000
390,000 aOxnard RDA, COP, Channel Islands Business Center, Weekly VRDN and Put,
4.4357%, 07/01/05 ............................................................ 390,000
aPalm Springs CRDA, COP, Weekly VRDN and Put,
1,000,000 Hotel No. 2, 4.00%, 12/01/14 .............................................. 1,000,000
800,000 Hotel No. 3, 4.00%, 12/01/14 .............................................. 800,000
1,500,000 aPico Rivera RDA, COP, Crossroad Plaza Project, Weekly VRDN and Put, 3.00%,
12/01/10 ....................................................................... 1,500,000
3,550,000 aRedlands MFHR, Refunding, Parkview Terrace, Series A, Weekly VRDN and Put,
4.05%, 02/01/16 ................................................................ 3,550,000
800,000 aRiverside County COP, ACES, Riverside County Public Facilities, Series C,
Weekly VRDN and Put, 2.85%, 12/01/15 ........................................... 800,000
aRiverside County IDA, IDR, Weekly VRDN and Put,
1,500,000 Calavo Growers, 4.00%, 09/01/05 ........................................... 1,500,000
1,050,000 Spaulding Project, Issue B-II, 4.00%, 07/05/19 ............................ 1,050,000
9,800,000 aRoseville Finance Authority Hospital, Lease Revenue, Series A, Roseville Hospital,
Weekly VRDN and Put, 4.05%, 10/01/14 ........................................... 9,800,000
8,700,000 aSacramento County COP, Administration Center and Court House Project, Weekly
VRDN and Put, 3.75%, 06/01/20 .................................................. 8,700,000
4,800,000 aSacramento County MFR, Various Housing Projects, Smoketree, Series A, Weekly
VRDN and Put, 4.05%, 04/15/10 .................................................. 4,800,000
6,750,000 Sacramento MUD Revenue, Refunding, Series R, 7.125%, 02/01/97 ................. 6,904,652
Sacramento MUD, TECP,
5,000,000 3.40%, 01/06/97 ........................................................... 5,000,000
19,267,000 3.50%, 01/21/97 ........................................................... 19,267,000
8,000,000 3.50%, 01/22/97 ........................................................... 8,000,000
4,300,000 3.35%, 03/13/97 ........................................................... 4,300,000
2,600,000 aSalinas City Apartment Development Revenue, Brentwood Gardens, Series 1985-A,
Weekly VRDN and Put, 4.00%, 03/01/05 ........................................... 2,600,000
8,000,000 San Bernardino TRAN, 4.50%, 06/30/97 .......................................... 8,024,600
aSan Bernardino, Weekly VRDN and Put,
2,150,000 Western Properties Project I, 4.00%, 02/01/05 ............................. 2,150,000
900,000 Western Properties Project III, 4.00%, 08/01/05 ........................... 900,000
1,600,000 Western Properties Project IV, 4.00%, 08/01/05 ............................ 1,600,000
2,550,000 Western Properties Project V, 4.00%, 08/01/05 ............................. 2,550,000
2,300,000 Woodview Apartments Project, Series I, 4.05%, 04/01/07 .................... 2,300,000
$ 1,300,000 aSan Diego County MFHR, Nationwide, Series C, Weekly VRDN and Put,
4.05%, 04/15/05 ................................................................ $ 1,300,000
5,500,000 San Diego County Regional Transportation, San Diego Water Authority, TECP,
3.50%, 01/14/97 ................................................................ 5,500,000
San Diego Gas and Electric, TECP,
2,000,000 3.35%, 01/28/97 ........................................................... 2,000,000
3,000,000 3.30%, 03/07/97 ........................................................... 3,000,000
890,000 aSan Diego MFHR, Country Hills Facility, Series A, FNMA Secured, Weekly VRDN
and Put, 4.05%, 08/15/13 ....................................................... 890,000
2,400,000 aSan Diego MFMR, California Housing Authority, La Cima Apartments, Series K,
Weekly VRDN and Put, 4.05%, 12/01/08 ........................................... 2,400,000
2,900,000 aSan Diego MFMR, Refunding, University Town Center Apartments, Weekly VRDN
and Put, 4.05%, 10/01/15 ....................................................... 2,900,000
900,000 aSan Dimas RDA, Commercial Development Revenue, San Dimas Commercial
Center, Monthly VRDN and Put, 3.55%, 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
1,000,000 aSan Francisco City and County RDA, MFR, Refunding, Fillmore Center, Series B-2,
Weekly VRDN and Put, 4.25%, 12/01/17 ........................................... 1,000,000
2,515,000 aSan Francisco City and County RDA, MFR, Rincon Center Project No. 8, Series B,
Weekly VRDN and Put, 3.00%, 12/01/06 ........................................... 2,515,000
aSan Jose MFMR, Weekly VRDN and Put,
700,000 Fairway Glen, Series A, FGIC Insured, 4.00%, 11/01/07 ..................... 700,000
600,000 Foxchase, Series B, FGIC Insured, 4.00%, 11/01/07 ......................... 600,000
1,000,000 Somerset Park Apartment Project, 4.15%, 11/01/17 .......................... 1,000,000
1,200,000 aSan Jose-Santa Clara Water Financing Authority, Sewer Revenue, Series B Weekly
VRDN and Put, 3.85%, 11/15/11 .................................................. 1,200,000
1,000,000 aSan Leandro MFR, Parkside Commons, Series A, FNMA Secured, Weekly VRDN
and Put, 4.05%, 07/15/18 ....................................................... 1,000,000
2,950,000 aSan Mateo County Housing Authority, MFHR, Pacific Oaks Apartment Project,
Series A, Weekly VRDN and Put, 4.25%, 07/01/17 ................................. 2,950,000
2,000,000 San Mateo County TRAN, 4.50%, 07/01/97 ........................................ 2,005,247
1,500,000 aSanta Clara County Housing Authority, MFHR, Refunding, Benton Park Center
Apartments, Series A, FNMA Secured, Weekly VRDN and Put, 4.00%, 12/15/25 ....... 1,500,000
1,000,000 aSanta Clara County MFHR, Grove Garden Apartments, Series A, Weekly VRDN
and Put, 4.15%, 03/01/17 ....................................................... 1,000,000
500,000 aSouth San Francisco MFR, Magnolia Plaza Apartments, Series A, Weekly VRDN
and Put, 4.10%, 05/01/17 ....................................................... 500,000
Southern California Edison, TECP,
3,000,000 3.30%, 02/05/97 ........................................................... 3,000,000
3,850,000 PCR, 3.50%, 02/11/97 ...................................................... 3,850,000
Southern California Public Power Authority Revenue,
$27,300,000 aRefunding, Transmission Project, AMBAC Insured, Weekly VRDN and Put,
3.90%, 07/01/19 ............................................................ $ 27,300,000
1,000,000 San Juan Unit 3 Project, Series A, MBIA Insured, 4.00%, 01/01/97 .......... 1,000,000
2,000,000 aSouthern California Public Power Authority, Sub-Palo Verde Project, Refunding,
Series B, AMBAC Insured, Weekly VRDN and Put, 3.90%, 07/01/09 .................. 2,000,000
900,000 aStockton MFHR, Mariners Pointe Association, Series A, Weekly VRDN and Put,
4.00%, 09/01/18................................................................. 900,000
9,100,000 aSuisun City MFMR, Housing Authority, Village Green Apartments, Series A, Weekly
VRDN and Put, 4.05%, 06/15/18 .................................................. 9,100,000
16,300,000 aTustin 1915 Act, Reassessment District No. 95-2, Series A, Daily VRDN and Put,
5.00%, 09/02/13 ................................................................ 16,300,000
West Basin Municipal Water, TECP,
3,000,000 3.45%, 01/15/97 ........................................................... 3,000,000
5,000,000 3.30%, 02/05/97 ........................................................... 5,000,000
6,300,000 aWestern Riverside County Regional Wastewater Authority Revenue, Regional
Wastewater Treatment, Daily VRDN and Put, 5.00%, 04/01/28 ...................... 6,300,000
-------------
Total Investments (Cost $639,748,120)99.9% ........................... 639,748,120
Other Assets and Liabilities, Net0.1% ................................ 921,771
-------------
Net Assets100.0%..................................................... $640,669,891
=============
</TABLE>
At December 31, 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
RAN - Revenue Anticipation Notes
RDA - Redevelopment Agency
TECP - Tax-Exempt Commercial Paper
TRAN - Tax and Revenue Anticipation Notes
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
Financial Statements
Statements of Assets and Liabilities
December 31, 1996 (unaudited)
<TABLE>
<CAPTION>
Franklin Franklin California Franklin
California Intermediate-Term California
Insured Tax-Free Tax-Free Tax-Exempt
Income Fund Income Fund Money Fund
----------- ---------------------
Assets:
Investments in securities:
<S> <C> <C> <C>
At identified cost............................................. $1,552,526,170 $105,637,509 $639,748,120
=========== =========== ==========
At value....................................................... 1,637,769,286 108,126,195 639,748,120
Cash............................................................ 3,309 257,482 --
Receivables:
Interest....................................................... 28,967,670 1,737,152 5,458,620
Investment securities sold..................................... 113,150 51,013 --
Capital shares sold............................................ 1,249,687 141,410 1,448,192
----------- ----------- ----------
Total assets............................................... 1,668,103,102 110,313,252 646,654,932
----------- ----------- ----------
Liabilities:
Payables:
Investment securities purchased on a when-issued basis (Note 1) 2,897,650 1,501,375 --
Distributions payable to shareholders.......................... 2,714,041 159,515 64,855
Capital shares repurchased..................................... 137,562 42,747 5,541,707
Management fees................................................ 643,761 23,474 268,116
Distribution fees.............................................. 245,251 17,735 --
Shareholder servicing costs.................................... 36,372 2,330 56,510
Accrued expenses and other liabilities.......................... 35,690 14,776 53,853
----------- ----------- ----------
Total liabilities.......................................... 6,710,327 1,761,952 5,985,041
----------- ----------- ----------
Net assets, at value............................................. $1,661,392,775 $108,551,300 $640,669,891
=========== =========== ==========
Net assets consist of:
Undistributed net investment income............................. 430,572 239,948 --
Net unrealized appreciation on investments...................... 85,243,116 2,488,686 --
Accumulated net realized loss................................... (51,221) (684,461) --
Class I capital shares.......................................... 1,550,464,893 106,507,127 640,669,891
Class II capital shares......................................... 25,305,415 -- --
----------- ----------- ----------
Net assets, at value............................................. $1,661,392,775 $108,551,300 $640,669,891
=========== =========== ==========
Class I shares:
Net assets, at value............................................ $1,635,843,132 $108,551,300 $640,669,891
=========== =========== ==========
Shares outstanding.............................................. 133,552,409 9,999,209 640,669,891
=========== =========== ==========
Net asset value per share*...................................... $12.25 $10.86 $1.00
=========== =========== ==========
Class II shares:
Net assets, at value............................................ $ 25,549,643 -- --
=========== =========== ==========
Shares outstanding.............................................. 2,075,011 -- --
=========== =========== ==========
Net asset value per share*...................................... $12.31 -- --
=========== =========== ==========
</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 six months ended December 31, 1996 (unaudited)
<TABLE>
<CAPTION>
Franklin Franklin California Franklin
California Intermediate-Term California
Insured Tax-Free Tax-Free Tax-Exempt
Income Fund Income Fund Money Fund
------------ ---------- ----------
Investment income:
<S> <C> <C> <C>
Interest........................................................ $49,468,263 $2,851,880 $10,791,567
----------- ---------- -----------
Expenses:
Management fees (Note 5)........................................ 3,833,333 326,806 1,556,701
Distribution fees Class I (Note 5).............................. 676,525 49,393 --
Distribution fees Class II (Note 5)............................. 74,362 -- --
Shareholder servicing costs (Note 5)............................ 141,126 11,212 237,470
Reports to shareholders......................................... 99,256 8,285 151,351
Professional fees............................................... 35,153 1,706 13,363
Pricing fees.................................................... 29,702 12,375 132
Trustees' fees and expenses..................................... 28,756 1,891 14,732
Insurance....................................................... 3,633 -- --
Custodian fees.................................................. 2,209 59 3,105
Registration and filing fees.................................... 834 -- 4,664
Other........................................................... 11,413 2,315 10,636
Management fees waived by manager (Note 5)...................... -- (177,904) --
----------- ---------- -----------
Total expenses............................................. 4,936,302 236,138 1,992,154
----------- ---------- -----------
Net investment income..................................... 44,531,961 2,615,742 8,799,413
----------- ---------- -----------
Realized and unrealized gain on investments:
Net realized gain............................................... 934,570 4,119 --
Net unrealized appreciation .................................... 31,525,805 1,772,388 --
----------- ---------- -----------
Net realized and unrealized gain on investments.................. 32,460,375 1,776,507 --
----------- ---------- -----------
Net increase in net assets resulting from operations............. $76,992,336 $4,392,249 $ 8,799,413
=========== ========== ===========
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 six months ended December 31, 1996
(unaudited) and the year ended June 30, 1996
Franklin California Insured Franklin California Intermediate- Franklin California
Tax-Free Income Fund Term Tax-Free Income Fund Tax-Exempt Money Fund
------------------------ ----------------------- -------------------
Six months Year Six months Year Six months Year
ended ended ended ended ended ended
12/31/96 6/30/96 12/31/96 6/30/96 12/31/96 6/30/96
----------- ----------- ---------- ---------- --------- -----------
Increase (decrease) in net assets:
Operations:
<S> <C> <C> <C> <C> <C> <C>
Net investment income. $ 44,531,961 $ 85,550,001 $ 2,615,742 $ 4,828,347 $ 8,799,413 $ 17,736,788
Net realized gain
(loss) from security
transactions ........ 934,570 7,736,583 4,119 108,711 -- (1,444)*
Net unrealized appreci-
ation (depreciation)
on investments....... 31,525,805 (2,001,089) 1,772,388 2,273,517 -- --
----------- ----------- ---------- ----------- -------- -----------
Net increase in
net assets
resulting from
operations........ 76,992,336 91,285,495 4,392,249 7,210,575 8,799,413 17,735,344
Distributions to share-
holders from undistributed
net investment income:
Class I................ (44,672,973) (85,122,188) (2,605,626) (4,734,070) (8,799,413) (17,735,344)
Class II............... (533,321) (483,443) -- -- -- --
Increase (decrease) in net
assets from capital share
transactions (Note 3)... 22,518,362 132,821,653 5,565,839 9,937,573 42,851,101 (44,338,544)
----------- ----------- ---------- ----------- -------- -----------
Net increase
(decrease)
in net assets..... 54,304,404 138,501,517 7,352,462 12,414,078 42,851,101 (44,338,544)
Net assets:
Beginning of period..... 1,607,088,371 1,468,586,854 101,198,838 88,784,760 597,818,790 642,157,334
----------- ----------- ---------- ----------- -------- -----------
End of period........... $1,661,392,775 $1,607,088,371 $108,551,300 $101,198,838 $640,669,891 $597,818,790
=========== =========== ========== =========== ======== ===========
Undistributed net invest-
ment income included
in net assets:
Beginning of period.... $ 1,104,905 $ 1,160,535 $ 229,832 $ 135,555 $ -- $ --
=========== =========== ========== =========== ======== ===========
End of period.......... $ 430,572 $ 1,104,905 $ 239,948 $ 229,832 $ -- $ --
=========== =========== ========== =========== ======== ===========
</TABLE>
*Distributions were decreased by net realized loss from security transactions of
$1,444 in 1996.
The accompanying notes are an integral part of these financial statements.
FRANKLIN CALIFORNIA TAX-FREE TRUST
Notes to Financial Statements (unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES
Franklin California Tax-Free Trust (the Trust) is an open-end management
investment company (mutual fund), registered under the Investment Company Act of
1940, as amended. The Trust consists of three separate funds: Franklin
California Insured Tax-Free Income Fund (the Insured Fund), Franklin California
Intermediate-Term Tax-Free Income Fund (the Intermediate Fund) and Franklin
California Tax-Exempt Money Fund (the Money Fund). Each of the Funds issues a
separate series of the Trust's shares and maintains a totally separate
investment portfolio. Each Fund seeks to provide tax-free income. The Money Fund
also seeks liquidity in its investments. 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 shares. 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 purchases 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 or 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 dates 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 are 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 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. 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. 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-dividend date. Once each month, dividends are reinvested
in additional shares of the Funds or paid in cash as requested by the
shareholders.
For the Money Fund, net investment income includes income, calculated on an
accrual basis, and estimated expenses which are accrued daily. The total
available for distributions is computed daily and includes the net investment
income, plus or minus any gains or losses on security transactions and any
changes in unrealized portfolio appreciation or depreciation. Distributions are
normally declared for each day the New York Stock Exchange is open for business,
equal to the total available for distributions (as defined above), and are
payable to shareholders of record as of the close of business on the preceding
day. Such distributions are automatically reinvested daily in additional shares
of Fund at net asset value.
Net realized capital gains and losses differ for financial statement and tax
purposes primarily due to differing treatment of wash sale transactions.
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 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.
1. SIGNIFICANT ACCOUNTING POLICIES (cont.)
h. Securities Purchased on a When-Issued Basis or Delayed Delivery Basis:
The Funds may trade securities on a when-issued or delayed delivery basis, with
payment and delivery scheduled for a future date. These transactions are subject
to market fluctuations and are subject to the risk that the value at delivery
may be more or less than the trade date purchase price. Although the Funds will
generally purchase these securities with the intention of holding 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. The Funds have set aside sufficient investment
securities as collateral for these purchase commitments.
i. Accounting Estimates:
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the amounts of income and expense during the reporting
period. Actual results could differ from those estimates.
2. DISTRIBUTIONS AND CAPITAL LOSS CARRYOVERS
At June 30, 1996, for tax purposes, the Trust had capital loss carryovers as
follows:
Insured Fund Intermediate Fund Money Fund
--------- ------------- ---------
Capital loss carryovers
Expiring in: 2002 ......... $865,468 $223,085 --
2003 .......... -- 465,495 $14,563
--------- ------------- ---------
$865,468 $688,580 $14,563
========= ============= =========
In addition, during the period November 1, 1995 through June 30, 1996, the Money
Fund incurred approximately $1,444 of net realized capital losses. As permitted
by tax regulations, the Fund intends to elect to defer these losses and treat
them as having arisen in the year ended June 30, 1997. For tax purposes, the
aggregate cost of securities is higher (and unrealized appreciation is lower)
than for financial reporting purposes at December 31, 1996 by $120,323 in the
Insured Fund.
3. TRUST SHARES
At December 31, 1996, there was an unlimited number of no par value shares of
beneficial interest authorized. Transactions in each of the Funds' shares were
as follows:
<TABLE>
<CAPTION>
Insured Fund Intermediate Fund
-----------------------------------------
Class I Shares: Shares Amount Shares Amount
--------- --------- -------- ------------
Six months ended December 31, 1996
<S> <C> <C> <C> <C>
Shares sold ........................................... 11,074,778 $ 134,535,298 1,262,517 $13,596,984
Shares issued in reinvestment of distributions ........ 1,525,292 18,557,467 144,638 1,558,739
Shares redeemed ....................................... (11,289,165) (137,255,285) (889,486) (9,589,884)
--------- ----------- --------- ---------
Net increase ..................................... 1,310,905 $ 15,837,480 517,669 $ 5,565,839
========= =========== ========= =========
Year ended June 30, 1996
Shares sold ........................................... 26,797,375 $ 325,025,207 2,515,969 $ 27,007,213
Shares issued in reinvestment of distributions......... 2,876,043 34,838,739 267,330 2,856,178
Shares redeemed ....................................... (20,236,111) (245,153,955) (1,858,277) (19,925,818)
--------- ----------- --------- ---------
Net increase ..................................... 9,437,307 $ 114,709,991 925,022 $ 9,937,573
========= =========== ========= =========
3. TRUST SHARES (cont.)
Money Fund
-----------
Class I Shares: Amount
-----------
Six months ended December 31, 1996
<S> <C>
Shares sold ......................................................... $ 443,642,190
Shares issued in reinvestment of distributions ...................... 8,755,079
Shares redeemed ..................................................... (409,546,168)
-----------
Net increase ................................................... $ 42,851,101
===========
Year ended June 30, 1996
Shares sold ......................................................... $ 828,692,328
Shares issued in reinvestment of distributions ...................... 17,679,523
Shares redeemed ..................................................... (890,710,395)
-----------
Net decrease ................................................... $ (44,338,544)
===========
Insured Fund
----------------------
Class II Shares: Shares Amount
--------- -----------
Six months ended December 31, 1996
<S> <C> <C>
Shares sold ........................................... 631,110 $ 7,717,114
Shares issued in reinvestment of distributions ........ 28,749 351,897
Shares redeemed ....................................... (113,901) (1,388,129)
--------- -----------
Net increase ..................................... 545,958 $ 6,680,882
========= ===========
Year ended June 30, 1996
Shares sold ........................................... 1,610,542 $19,608,155
Shares issued in reinvestment of distributions ........ 26,614 323,905
Shares redeemed ....................................... (150,363) (1,820,398)
--------- -----------
Net increase ..................................... 1,486,793 $18,111,662
========= ===========
4. PURCHASES AND SALES OF SECURITIES
Aggregate purchases and sales of securities (excluding purchases and sales of
short-term securities) for the six months ended December 31, 1996 were as
follows:
Insured Fund Intermediate Fund Money Fund
---------- ------------- ---------
<S> <C> <C> <C>
Purchases ....................................................... $129,650,042 $9,440,890 --
Sales ........................................................... $110,602,902 $1,556,850 --
</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 on the
last day of the month of the Insured Fund and the Intermediate 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
Advisers agreed in advance to waive management fees for the Intermediate Fund,
aggregating $177,904 for the six months ended December 31,1996.
Under an agreement with Advisers, Franklin Templeton Services, Inc. (FT
Services) provides administrative services and facilities for the Funds. The fee
is paid by Advisers and computed monthly based on average daily net assets. It
is not a separate expense of the Funds.
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 Funds for
the six months ended December 31, 1996 aggregated $389,808, of which $345,037
was paid to Investor Services.
c. Distribution Plans and Underwriting Agreement:
Under the terms of distribution plans pursuant to Rule 12b-1 of the Investment
Company Act of 1940 (the Plans), the Intermediate Fund reimburses
Franklin/Templeton Distributors, Inc. (Distributors) in an amount up to a
maximum of 0.10% per annum of the Fund's average daily net assets, while the
Insured Fund reimburses Distributors up to a maximum of 0.10% per annum for
Class I and 0.65% per annum for Class II, of the average daily net assets of
such class 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 $800,280 for the six months ended December 31, 1996.
In its capacity as underwriter for the shares of the Insured Fund and the
Intermediate Fund, 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 shares of the Funds, 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 six months ended December 31, 1996 were as
follows:
5. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES (cont.)
c. Distribution Plans and Underwriting Agreement: (cont.)
<TABLE>
<CAPTION>
Insured Fund Intermediate Fund Money Fund
--------- --------------------
<S> <C> <C> <C>
Total commissions received......................................... $2,211,838 $118,599 $ --
Paid to other dealers.............................................. $2,248,609 $110,168 $ --
Contingent deferred sales charges $ 8,725
</TABLE>
d. Other Affiliates and Related Parties and Transactions:
Certain officers and trustees of the Trust are also officers and/or directors of
Distributors, Advisers, FT Services, 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 that state.
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 DistributionsNet Asset Net Assets Expenses Investment
Year Value at Net & Unrealized Total From From Net Value at End to Average Income Portfolio
Ended BeginningInvestment Gain (Loss) Investment Investment at End Total of Period Net Assets to Average Turnover
June 30 of Period Income on SecuritiesOperations Income of Period Return+ (in 000's) (See Note 5)++Net Assets Rate
Insured Fund:
Class I Shares:
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
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
1996**** 12.01 .330 .245 .575 (.335) 12.25 4.84 1,635,843 .59* 5.42* 6.84
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
1996**** 12.07 .290 .250 .540 (.300) 12.31 4.53 25,550 1.19* 4.82* 6.84
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
1996**** 10.67 .270 .188 .458 (.268) 10.86 4.34 108,551 .45* 4.98* 1.52
7. FINANCIAL HIGHLIGHTS (cont.)
Per Share Operating Performance Ratios/Supplemental Data
---------------------------------- ---------------------------------------------
Ratio of Ratio of Net
Net Asset Net Realized DistributionsNet Asset Net Assets Expenses Investment
Year Value at Net & Unrealized Total From From Net Value at End to Average Income Portfolio
Ended BeginningInvestment Gain (Loss) Investment Investment at End Total of Period Net Assets to Average Turnover
June 30 of Period Income on SecuritiesOperations Income of Period Return+ (in 000's) (See Note 5)++Net Assets Rate
Money Fund:
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
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 --
1996**** 1.00 .014 -- .014 (.014) 1.00 1.40 640,670 .63* 2.79* --
</TABLE>
*Annualized.
**For the period September 21, 1992 (effective date) to June 30, 1993.
***For the period May 1, 1995 to June 30, 1995.
****For the six months ended December 31, 1996.
+Total return measures the change in value of an investment over the periods
indicated. It is not annualized. It does not include the maximum front-end sales
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
its management fees and make 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%, .81% and .79% (annualized)
respectively.
Franklin California Tax-Free Trust Semi-Annual Report December 31, 1996.
APPENDIX
DESCRIPTION OF GRAPHIC MATERIAL OMITTED FROM EDGAR FILING
(PURSUANT TO ITEM 304 (a) OF REGULATION S-T)
GRAPHIC MATERIAL (1)
This chart shows in bar format the comparison between the fund's Class I
distribution rate of 5.16% and the taxable equivalent rate of 9.42%.
GRAPHIC MATERIAL (2)
This chart shows in bar format the comparison between the fund's Class II
distribution rate of 4.79% and the taxable equivalent rate of 8.74%.
GRAPHIC MATERIAL (3)
This chart shows in pie format the quality breakdown of the fund's securities on
December 31, 1996, based on total long-term investments.
Quality Breakdown on December 31, 1996
AAA 30.3%
AA 3.4%
A 34.6%
BBB 31.6%
Below Investment Grade 0.1%
GRAPHIC MATERIAL (4)
This chart shows in bar format the comparison between the fund's distribution
rate of 4.75% and the taxable equivalent rate of 8.67%.
GRAPHIC MATERIAL (5)
This chart shows in bar format the comparison between the fund's seven-day
annualized yield of 3.25% and the taxable equivalent yield of 5.93%.
