Greenwich Street
----------
CALIFORNIA
MUNICIPAL FUND INC.
Semi-Annual Report
February 28, 1998
<PAGE>
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Greenwich Street California Municipal Fund Inc.
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Dear Shareholder:
We are pleased to provide the semi-annual report for the Greenwich Street
California Municipal Fund Inc. ("Fund") for the period ended February 28, 1998.
Over the six months covered by this report, the Fund distributed income
dividends totaling $0.27 per share. The table below details the annualized
distribution rates and the six-month total return based on the Fund's February
28, 1998 net asset value ("NAV") per share and its American Stock Exchange
("AMEX") closing price:
Price Annualized Six-Month
Per Share Distribution Rate* Total Return
--------- ------------------ ------------
$14.23 (NAV) 4.55% 7.18%
$12.625 (AMEX) 5.13% 1.88%
In comparison, the Fund's Lipper Analytical Services, Inc. peer group average
posted a total return on NAV of 5.06% for the same time period. (Lipper is a
major fund-tracking organization.)
Municipal Bond Market Update
If there was one overriding trend in the bond market over the past year, it had
to be the favorable inflation environment despite strong economic growth and a
relatively tight labor market. This is clearly the first time in my career as a
portfolio manager that inflation has stayed subdued in the face of both of these
events.
The bond market takes its ultimate cue from inflation and bonds experienced a
meaningful rally during the past twelve months. A positive inflation outlook
continues today and that should, in our view, provide a reasonable backdrop for
municipal bonds in the months ahead. And while municipal bonds have lagged a
little on the upside versus taxable bonds, the after-tax spread between
municipal and taxable bonds are very reasonable by historical standards. In our
opinion, the difference in spreads between municipal and taxable bonds should
make municipal bonds less vulnerable to any short-term rate increase if one
occurs.
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* This distribution assumes a current monthly income dividend rate of $0.054
per share for twelve months.
1
<PAGE>
California Economic Highlights
Throughout 1997, California continued its strong economic expansion. The key
component of this growth has been strong employment gains. California generated
more than 500,000 new jobs (its strongest job growth in 13 years) over a broad
range of industries. In addition, California also experienced a long-awaited
rebound in residential real estate values. In fact, home prices have jumped an
average of 10% over last year.
Strong economic growth coupled with conservative fiscal policy has allowed the
California legislature to focus on improving educational, infrastructural and
other public works needs in the Golden State. We think these initiatives should
enable California to maintain its competitive edge for many years to come.
Fund's Investment Strategy
During the past quarter, the Fund focused on hospital bonds (20.3%), water and
sewer bonds (20.0%), transportation bonds (17.5%) and tax allocation bonds
(12.2%) because we believe they offered good relative values. At the end of
February, the Fund's weighted average maturity was roughly 23 years. In
addition, as of February 28, 1998, about 100% of the Fund's holdings were rated
investment-grade by either Standard & Poor's Rating Service or Moody's Investors
Services Inc., with approximately 48% of the Fund invested in AAA bonds, the
highest possible rating. (Investment-grade bonds are rated Aaa, Aa, A and Baa by
Moody's Investors Service Inc. or AAA, AA, A and BBB by Standard & Poor's
Ratings Service, or within the highest four rating categories by any other
nationally recognized statistical rating organization, or are determined by the
manager to be of equivalent quality.)
Municipal Bond Market Outlook
We anticipate that the municipal bond market over the next six months will be
rather benign, yet not filled with dramatic upside potential. However, we still
think there may be some upside potential in the market, especially if the
long-term U.S. government bond drifts down toward 5 1/2%.
We believe that you cannot just manage for yield alone, and that is why we
concentrate so much on total return. By making adjustments to a fund's average
maturity, you can try to lessen the impact of volatility or take advantage of
it. We think you are going to miss tremendous opportunities or make yourself
more vulnerable to losses when you do not manage for total return.
2
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Over the long term, you need to generate high total returns in order to provide
shareholders with a substantial enough stream of overall distributions,
especially when interest rates are heading down. In order to succeed in today's
municipal bond market, in baseball terms, you need to hit singles and doubles
and not try to always hit home runs. We will, therefore, continue to apply our
best efforts on your behalf and provide you with what we believe is the best
investment vehicle possible consistent with our total-return philosophy.
In closing, thank you for investing in the Greenwich Street California Municipal
Fund Inc. We look forward to continuing to help you pursue your financial goals.
Sincerely,
/s/ Heath B. McLendon /s/ Joseph P. Deane
Heath B. McLendon Joseph P. Deane
Chairman Vice President and
Investment Officer
March 18, 1998
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Take Advantage of the Fund's Dividend Reinvestment Plan!
Did you know that fund investors who reinvest their dividends are taking
advantage of one of the most effective wealth-building tools available today?
The power of automatically reinvesting your dividends is one of the most
successful investment strategies available today. Systematic investments put
time to work for you through the strength of compounding.
As an investor in the Fund, you can participate in its Dividend
Reinvestment Plan, a convenient, simple and efficient way to reinvest your
dividends and capital gains, if any, in additional shares of the Fund. For more
detailed information about the Fund's Dividend Reinvestment Plan, please refer
to the section that appears on pages 16 and 17.
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3
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Schedule of Investments (unaudited) February 28, 1998
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<TABLE>
<CAPTION>
FACE
AMOUNT RATINGS SECURITY VALUE
==========================================================================================================
<C> <C> <S> <C>
Education -- 8.5%
California Education Facility Authority:
$2,100,000 A1* Loyola Marymount University, 5.750% due 10/1/24 $ 2,186,625
2,000,000 A3* Southwestern University, 6.700% due 11/1/24 2,230,000
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4,416,625
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General Obligation -- 3.3%
1,715,000 AAA California State GO, AMBAC-Insured, 5.000% due 10/11/18 1,689,275
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Hospital -- 20.3%
California Health Facility Financing Authority:
1,930,000 A+ Daniel Freeman Hospital, (Pre-Refunded - Escrowed
with U.S. government securities to 5/1/05
Call @ 102), 6.500% due 5/1/20 (a) 2,231,562
2,000,000 A+ Kaiser Permanente Hospital, 5.550% due 8/15/25 2,015,000
2,000,000 AA California Statewide Community Development
Authority, COP, St. Joseph's Hospital,
(Pre-Refunded - Escrowed with state & local
government securities to 7/1/04 Call @ 102),
6.625% due 7/1/21 (b) 2,302,500
2,000,000 AA Fresno Health Facility Revenue, Holy Cross Health
System, 5.625% due 12/1/15 2,075,000
1,705,000 A Torrence Hospital Revenue, Little Company of Mary
Hospital, 6.875% due 7/1/15 1,858,450
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10,482,512
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Housing -- 7.2%
1,400,000 Aa2* California HFA Home Mortgage, Series E, FHA-Insured,
6.375% due 8/1/27 (c) 1,513,750
2,000,000 AAA Santa Rosa Mortgage Revenue, Village Square
Apartments, FHA-Insured, 6.875% due 9/1/27 2,187,500
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3,701,250
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Miscellaneous -- 7.5%
2,000,000 AAA Los Angeles Convention and Exhibition Center Authority
Lease Revenue, MBIA-Insured, 5.375% due 8/15/18 2,030,000
1,675,000 AAA Orange County 1996 Recovery COP,
Series A, MBIA-Insured, 6.000% due 7/1/26 1,825,750
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3,855,750
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Pollution Control -- 3.5%
California PCFA, PCR:
1,500,000 A-1+ Pacific Gas & Electric, LOC Bank of America,
3.550% due 11/1/26 (d) 1,500,000
300,000 A-1+ Shell Oil Co. Project, 3.550% due 10/1/11 (d) 300,000
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1,800,000
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</TABLE>
See Notes to Financial Statements.
4
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Schedule of Investments (unaudited) (continued) February 28, 1998
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<TABLE>
<CAPTION>
FACE
AMOUNT RATINGS SECURITY VALUE
==========================================================================================================
<C> <C> <S> <C>
Tax Allocation -- 12.2%
$ 2,100,000 Baa* Hawthorne Community Redevelopment Agency,
Tax Allocation, 6.700% due 9/1/20 $ 2,268,000
2,000,000 AAA Rancho Cucamonga Redevelopment Agency, Tax
Allocation, MBIA-Insured, 5.250% due 9/1/26 2,007,500
2,000,000 AAA San Jose Redevelopment Agency, Tax Allocation,
MBIA-Insured, 5.250% due 8/1/16 2,025,000
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6,300,500
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Transportation -- 17.5%
2,000,000 Baa* Foothill Eastern Transportation, California Toll Revenue,
6.000% due 1/1/34 (b) 2,105,000
2,000,000 AAA Los Angeles County Metropolitan Transportation
Authority, Sales Tax Allocation, MBIA-Insured,
5.625% due 7/1/18 2,080,000
20,000,000 AAA San Joaquin Hills Transportation Corridor Agency,
Senior Lein Toll, (Escrowed to Maturity with
state & local government securities),
zero coupon to yield 7.723% due 1/1/26 4,850,000
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9,035,000
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Water & Sewer -- 20.0%
1,240,000 AAA Anaheim Public Finance Authority, Water Utility,
(Lenain Filtration Project), FGIC-Insured,
5.250% due 10/1/19 1,246,200
2,000,000 AA California State Department of Water Revenue,
Series L, 5.500% due 12/1/23 2,047,500
2,140,000 AAA East Bay Mud Wastewater System, FGIC-Insured,
5.000% due 6/1/26 2,089,175
200,000 A-1+ Irvine Ranch California Water District, Various Districts,
3.650% due 4/1/33 (d) 200,000
2,000,000 BBB+ Kings County Waste Management Authority, Solid
Waste Revenue, 7.200% due 10/1/14 (c) 2,235,000
1,000,000 AAA Redding Joint Powers Financing Authority, Waste Water
Revenue, FGIC-Insured, 5.500% due 12/1/18 1,031,250
1,500,000 AAA San Diego PCFA Sewer Revenue, FGIC-Insured,
5.000% due 5/15/20 1,468,125
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10,317,250
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TOTAL INVESTMENTS -- 100%
(Cost - $43,558,368**) $51,598,162
==========================================================================================================
</TABLE>
(a) Pre-Refunded bond is escrowed with U.S. government securities and is
considered by the Manager to be triple-A rated even if the issuer has not
applied for new ratings.
(b) Security is segregated by Custodian for open market purchase commitment.
(c) Income from this issue is considered a preference item for purposes of
calculating the alternative minimum tax.
(d) Variable rate obligation payable at par on demand at any time on no more
than seven days notice.
** Aggregate cost for Federal income tax purposes is substantially the same.
See pages 6 and 7 for definition of ratings and certain security descriptions.
See Notes to Financial Statements.
5
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Bond Ratings (unaudited)
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All ratings are by Standard & Poor's Ratings Service ("Standard & Poor's"),
except those identified by an asterisk (*) are rated by Moody's Investors
Service, Inc. ("Moody's"). The definitions of the applicable rating symbols are
set forth below:
Standard & Poor's -- Ratings from "AA" to "BBB" may be modified by the addition
of a plus (+) or minus (-) sign to show relative standings within the major
rating categories.
AAA -- Bonds rated "AAA" have the highest rating assigned by Standard &
Poor's. Capacity to pay interest and repay principal is extremely
strong.
AA -- Bonds rated "AA" have a very strong capacity to pay interest and
repay principal and differ from the highest rated issue only in a
small degree.
A -- Bonds rated "A" have a strong capacity to pay interest and repay
principal although it is somewhat more susceptible to the adverse
effects of changes in circumstances and economic conditions than
bonds in higher rated categories.
BBB -- Bonds rated "BBB" are regarded as having an adequate capacity to
pay interest and repay principal. Whereas they normally exhibit
adequate protection parameters, adverse economic conditions or
changing circumstances are more likely to lead to a weakened
capacity to pay interest and repay principal for bonds in this
category than in higher rated categories.
Moody's -- Numerical modifiers 1, 2, and 3 may be applied to each generic
rating from "Aa" to "Baa", where 1 is the highest and 3 the lowest rating within
its generic category.
Aaa -- Bonds that are rated "Aaa" are judged to be of the best quality.
They carry the smallest degree of investment risk and are generally
referred to as "gilt edge." Interest payments are protected by a
large or by an exceptionally stable margin and principal is secure.
While the various protective elements are likely to change, such
changes as can be visualized are most unlikely to impair the
fundamentally strong position of such issues.
Aa -- Bonds that are rated "Aa" are judged to be of high quality by all
standards. Together with the "Aaa" group they comprise what are
generally known as high grade bonds. They are rated lower than the
best bonds because margins of protection may not be as large as in
"Aaa" securities or fluctuation of protective elements may be of
greater amplitude or there may be other elements present which make
the long-term risks appear somewhat larger than in "Aaa" securities.
A -- Bonds that are rated "A" possess many favorable investment
attributes and are to be considered as upper medium grade
obligations. Factors giving security to principal and interest are
considered adequate but elements may be present which suggest a
susceptibility to impairment some time in the future.
Baa -- Bonds that are rated "Baa" are considered as medium grade
obligations, i.e., they are neither highly protected nor poorly
secured. Interest payments and principal security appear adequate
for the present but certain protective elements may be lacking or
may be characteristically unreliable over any great length of time.
Such bonds lack outstanding investment characteristics and in fact
have speculative characteristics as well.
NR -- Indicates that the bond is not rated by Standard & Poor's or
Moody's.
6
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Short-Term Security Ratings (unaudited)
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SP-1 -- Standard & Poor's highest rating indicating very strong or strong
capacity to pay principal and interest; those issues determined to
possess overwhelming safety characteristics are denoted with a plus
(+) sign.
A-1 -- Standard & Poor's highest commercial paper and variable-rate
demand obligation (VRDO) rating indicating that the degree of safety
regarding timely payment is either overwhelming or very strong;
those issues determined to possess overwhelming safety
characteristics are denoted with a plus (+) sign.
VMIG 1 -- Moody's highest rating for issues having a demand feature --
VRDO.
P-1 -- Moody's highest rating for commercial paper and for VRDO prior to
the advent of the VMIG 1 rating.
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Security Descriptions (unaudited)
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AMBAC -- AMBAC Indemnity Corporation
COP -- Certificate of Participation
FGIC -- Financial Guaranty Insurance Company
FHA -- Federal Housing Administration
GO -- General Obligation
HFA -- Housing Finance Agency
PCR -- Pollution Control Revenue
MBIA -- Municipal Bond Investors Assurance Corporation
PCFA -- Pollution Control Financing Authority
LOC -- Letter of Credit
7
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Statement of Assets and Liabilities (unaudited) February 28, 1998
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ASSETS:
Investments, at value (Cost -- $43,558,368) $51,598,162
Interest receivable 682,110
Deferred organization costs 32,379
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Total Assets 52,312,651
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LIABILITIES:
Dividends payable 102,297
Payable to bank 72,505
Management fees payable 34,684
Accrued expenses 29,462
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Total Liabilities 238,948
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Total Net Assets $52,073,703
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NET ASSETS:
Par value of capital shares $ 3,658
Capital paid in excess of par value 43,831,350
Undistributed net investment income 114,140
Accumulated net realized gain from security transactions 84,761
Net unrealized appreciation of investments 8,039,794
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Total Net Assets
(Equivalent to $14.23 per share on 3,658,334 shares of $0.001
par value outstanding; 500,000,000 shares authorized) $52,073,703
================================================================================
See Notes to Financial Statements.
8
<PAGE>
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Statement of Operations (unaudited)
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For the Six Months Ended February 28, 1998
INVESTMENT INCOME:
Interest $1,389,078
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EXPENSES:
Management fees (Note 3) 227,757
Audit and legal 23,552
Shareholder and system servicing fees 18,149
Shareholder communications 15,972
Amortization of deferred organization costs 10,066
Directors' fees 1,973
Pricing service fees 1,775
Registration fees 1,480
Custody 1,265
Other 1,726
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Total Expenses 303,715
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Net Investment Income 1,085,363
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REALIZED AND UNREALIZED GAIN ON INVESTMENTS (NOTE 4):
Realized Gain From Security Transactions
(excluding short-term securities):
Proceeds from sales 3,519,810
Cost of securities sold 3,371,689
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Net Realized Gain 148,121
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Changes in Net Unrealized Appreciation of Investments:
Beginning of period 5,823,868
End of period 8,039,794
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Increase in Net Unrealized Appreciation 2,215,926
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Net Gain on Investments 2,364,047
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Increase in Net Assets From Operations $3,449,410
================================================================================
See Notes to Financial Statements.
9
<PAGE>
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Statements of Changes in Net Assets
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For the Six Months Ended February 28, 1998 (unaudited)
and the Year Ended August 31, 1997
February 28 August 31
================================================================================
OPERATIONS:
Net investment income $ 1,085,363 $ 2,269,926
Net realized gain 148,121 602,584
Increase in net unrealized appreciation 2,215,926 2,594,889
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Increase in Net Assets From Operations 3,449,410 5,467,399
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DISTRIBUTIONS TO SHAREHOLDERS
FROM (NOTE 2):
Net investment income (987,747) (2,304,816)
Net realized gains (373,150) (1,207,250)
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Decrease in Net Assets From
Distributions to Shareholders (1,360,897) (3,512,066)
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Increase in Net Assets 2,088,513 1,955,333
NET ASSETS:
Beginning of period 49,985,190 48,029,857
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End of period* $52,073,703 $49,985,190
================================================================================
* Includes undistributed net investment income of: $ 114,140 $ 16,524
================================================================================
See Notes to Financial Statements.
10
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Notes to Financial Statements (unaudited)
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1. SIGNIFICANT ACCOUNTING POLICIES
The Greenwich Street California Municipal Fund Inc. ("Fund"), a Maryland
corporation, is registered under the Investment Company Act of 1940, as amended,
as a non-diversified, closed-end management investment company.
The significant accounting policies consistently followed by the Fund are:
(a) security transactions are accounted for on trade date; (b) securities are
valued at the mean between the quoted bid and ask prices provided by an
independent pricing service that are based on transactions in municipal
obligations, quotations from municipal bond dealers, market transactions in
comparable securities and various relationships between securities; (c)
securities maturing within 60 days are valued at cost plus accreted discount, or
minus amortized premium, which approximates value; (d) gains or losses on the
sale of securities are calculated by using the specific identification method;
(e) interest income, adjusted for amortization of premium and accretion of
original issue discount, is recorded on an accrual basis; market discount is
recognized upon the disposition of the security; (f) dividends and distributions
to shareholders are recorded on the ex-dividend date; (g) the Fund intends to
comply with the applicable provisions of the Internal Revenue Code of 1986, as
amended, pertaining to regulated investment companies and to make distributions
of taxable income sufficient to relieve it from substantially all Federal income
and excise taxes; and (h) estimates and assumptions are required to be made
regarding assets, liabilities and changes in net assets resulting from
operations when financial statements are prepared. Changes in the economic
environment, financial markets and any other parameters used in determining
these estimates could cause actual results to differ.
In addition, organization costs have been deferred and are being amortized
on a straight-line basis over a five year period, beginning at the commencement
of the Fund's operations in September 1994.
2. EXEMPT-INTEREST DIVIDENDS AND OTHER DISTRIBUTIONS
The Fund intends to satisfy conditions that will enable interest from
municipal securities, which is exempt from regular Federal income tax and from
designated state income taxes, to retain such tax-exempt status when distributed
to the shareholders of the Fund.
Capital gains distributions, if any, are taxable to shareholders, and are
declared and paid at least annually.
11
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Notes to Financial Statements (unaudited) (continued)
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3. MANAGEMENT AGREEMENT AND AFFILIATED TRANSACTIONS
Mutual Management Corp. ("MMC"), formerly known as Smith Barney Mutual
Funds Management Inc., a subsidiary of Salomon Smith Barney Holdings Inc.
("SSBH"), acts as investment manager to the Fund. The Fund pays MMC a fee
calculated at an annual rate of 0.90% of the Fund's average daily net assets.
This fee is calculated daily and paid monthly.
All officers and one director of the Fund are employees of Smith Barney
Inc., another subsidiary of SSBH.
4. INVESTMENTS
For the six months ended February 28, 1998, the aggregate cost of
purchases and proceeds from sales of investments (including maturities, but
excluding short-term securities) were as follows:
================================================================================
Purchases $1,658,748
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Sales 3,519,810
================================================================================
At February 28, 1998, the aggregate gross unrealized appreciation and
depreciation of investments for Federal income tax purposes were substantially
as follows:
================================================================================
Gross unrealized appreciation $8,039,794
Gross unrealized depreciation --
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Net unrealized appreciation $8,039,794
================================================================================
5. PORTFOLIO CONCENTRATION
Since the Fund invests primarily in obligations of issuers within
California, it is subject to possible concentration risks associated with
economic, political, or legal developments or industrial or regional matters
specifically affecting California.
6. FUTURES CONTRACTS
Initial margin deposits are made upon entering into futures contracts and
are recognized as assets. Securities equal to the initial margin amount are
segregated by the custodian in the name of the broker. Additional securities are
also segregated up to the current market value of the futures contracts. During
the period the futures contract is open, changes in the value of the contract
are recognized as unrealized gains or losses by "marking to market" on a daily
basis to reflect the market value of the contract at the end of each day's
trading. Variation margin payments are received or made and recognized as assets
due
12
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Notes to Financial Statements (unaudited) (continued)
- --------------------------------------------------------------------------------
from or liabilities due to broker, depending upon whether unrealized gains or
losses are incurred. When the contract is closed, the Fund records a realized
gain or loss equal to the difference between the proceeds from (or cost of) the
closing transactions and the Fund's basis in the contract.
The Fund enters into such contracts to hedge a portion of its
portfolio.The Fund bears the market risk that arises from changes in the value
of the financial instruments and securities indices (futures contracts).
At February 28, 1998, the Fund had no open futures contracts.
13
<PAGE>
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Financial Highlights
- --------------------------------------------------------------------------------
For a share of capital stock outstanding throughout each period:
<TABLE>
<CAPTION>
1998(1) 1997 1996 1995(2)(3)
==========================================================================================
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 13.66 $ 13.13 $ 12.92 $ 12.00
- ------------------------------------------------------------------------------------------
Income From Operations:
Net investment income(4) 0.30 0.62 0.63 0.60
Net realized and unrealized gain 0.64 0.87 0.30 0.84
- ------------------------------------------------------------------------------------------
Total Income From Operations 0.94 1.49 0.93 1.44
- ------------------------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.27) (0.63) (0.70) (0.52)
Net realized gains (0.10) (0.33) (0.02) --
- ------------------------------------------------------------------------------------------
Total Distributions (0.37) (0.96) (0.72) (0.52)
- ------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 14.23 $ 13.66 $ 13.13 $ 12.92
- ------------------------------------------------------------------------------------------
Total Return, Based on Market Value 1.88%++ 13.39% 11.92% 0.25%++
- ------------------------------------------------------------------------------------------
Total Return, Based on Net Asset Value* 7.18%++ 12.19% 7.96% 12.24%++
- ------------------------------------------------------------------------------------------
Net Assets, End of Period (000s) $52,074 $49,985 $48,030 $47,250
- ------------------------------------------------------------------------------------------
Ratios to Average Net Assets:
Expenses(4) 1.19%+ 1.21% 1.15% 1.02%+
Net investment income 4.28+ 4.64 4.75 5.16+
- ------------------------------------------------------------------------------------------
Portfolio Turnover Rate 3% 28% 42% 7%
- ------------------------------------------------------------------------------------------
Market Value, End of Period $12.625 $12.750 $12.125 $11.500
==========================================================================================
</TABLE>
(1) For the six months ended February 28, 1998 (unaudited).
(2) Based on the weighted average shares outstanding for the period.
(3) For the period from September 23, 1994 (commencement of operations) to
August 31, 1995.
(4) The Manager has waived a portion of its management fees for the period
ended August 31, 1995. If such fees were not waived, the per share
decrease on net investment income would have been $0.01 and the expense
ratio would have been 1.14%, annualized.
* The total return calculation assumes that dividends are reinvested in
accordance with the Fund's dividend reinvestment plan.
++ Total return is not annualized, as it may not be representative of the
total return for the year.
+ Annualized.
14
<PAGE>
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Financial Data (unaudited)
- --------------------------------------------------------------------------------
For a share of capital stock outstanding throughout each period:
AMEX
Record Payable Closing Net Asset Income Reinvestment
Date Date Price+ Value+ Declared Price
================================================================================
2/14/95 2/21/95 $11.625 $12.46 $0.05800 $11.77
3/14/95 3/21/95 11.625 12.71 0.05800 11.77
4/11/95 4/18/95 11.500 12.92 0.05800 11.65
5/16/95 5/23/95 11.750 13.03 0.05800 11.77
6/20/95 6/23/95 11.750 13.08 0.05800 12.02
7/25/95 7/28/95 11.750 12.81 0.05800 11.95
8/22/95 8/25/95 11.625 12.70 0.05800 11.65
9/26/95 9/29/95 11.500 12.99 0.05800 11.65
10/24/95 10/27/95 11.625 13.27 0.05800 11.77
11/20/95 11/24/95 11.875 13.48 0.05800 12.02
12/26/95 12/29/95 12.000 13.80 0.05800 12.02
12/26/95* 12/29/95 12.000 13.80 0.02365 12.02
1/23/96 1/26/96 12.063 13.75 0.05800 12.14
2/20/96 2/23/96 11.938 13.78 0.05800 12.05
3/26/96 3/29/96 11.750 13.27 0.05800 12.05
4/23/96 4/26/96 12.000 13.10 0.05800 12.10
5/28/96 5/31/96 12.000 13.19 0.05800 12.03
6/25/96 6/28/96 12.000 12.96 0.05800 12.09
7/23/96 7/26/96 12.375 13.14 0.05800 12.41
8/27/95 8/30/96 12.125 13.27 0.05800 12.14
9/24/96 9/27/96 11.875 13.25 0.05800 12.01
10/22/96 10/25/96 12.000 13.43 0.05800 12.14
11/25/96 11/29/96 12.500 13.73 0.05800 12.76
12/03/96* 12/13/96 12.375 13.49 0.33000 12.76
1/28/97 1/31/97 12.563 13.12 0.05800 12.75
2/25/97 2/28/97 12.500 13.42 0.05800 12.64
3/24/97 3/27/97 12.375 13.02 0.05800 12.50
4/22/97 4/25/97 12.500 12.91 0.05800 12.61
5/27/97 5/30/97 12.563 13.17 0.05800 12.72
6/24/97 6/27/97 12.750 13.48 0.05800 12.86
7/22/97 7/25/97 12.688 13.79 0.05400 12.82
8/26/97 8/29/97 12.688 13.62 0.05400 12.89
9/23/97 9/26/97 12.625 13.95 0.05400 13.03
10/28/97 10/31/97 12.688 13.97 0.05400 12.90
11/24/97 11/28/97 12.688 14.00 0.05400 13.08
12/22/97* 12/26/97 13.000 14.17 0.10200 13.26
1/27/98 1/30/98 13.000 14.25 0.05400 12.98
2/24/98 2/27/98 12.813 14.23 0.05400 12.82
================================================================================
+ Effective October 24, 1995, the Fund changed its valuation date from
payable date to record date. For the period from December 14, 1994 through
September 26, 1995, the AMEX closing price and net asset value are as of
payable date.
* Capital gain distribution.
15
<PAGE>
- --------------------------------------------------------------------------------
Dividend Reinvestment Plan (unaudited)
- --------------------------------------------------------------------------------
Under the Fund's Dividend Reinvestment Plan ("Plan"), a shareholder whose
shares of Common Stock are registered in his own name will have all
distributions from the Fund reinvested automatically by First Data Investor
Services Group, Inc. ("First Data") as agent under the Plan, unless the
shareholder elects to receive cash.
Distributions with respect to shares registered in the name of a
broker-dealer or other nominee (i.e., in "Street Name") will be reinvested by
the broker or nominee in additional shares under the Plan, unless the service is
not provided by the broker or nominee or the shareholder elects to receive
distributions in cash. Investors who own Common Stock registered in Street Name
should consult their broker-dealers for details regarding reinvestment. All
distributions to shareholders who do not participate in the Plan will be paid by
check, mailed directly to the record holder by or under the direction of First
Data as dividend paying agent.
The number of shares of Common Stock distributed to participants in the
Plan in lieu of a cash dividend is determined in the following manner. When the
market price of the Common Stock is equal or exceeds the net asset value per
share of the Common Stock on the date of valuation, plan participants will be
issued shares of Common Stock at a price equal to the greater of (1) net asset
value most recently determined or (2) 95% of the market price of the Common
Stock.
If the market price of the Common Stock is less than the net asset value
of the Common Stock at the time of valuation, or if the Fund declares a dividend
or capital gains distribution payable only in cash, First Data will buy Common
Stock in the open market, on the American Stock Exchange or elsewhere, for the
participants' accounts. If following the commencement of purchases and before
First Data has completed its purchases, the market price exceeds the net asset
value of the Common Stock, First Data will attempt to terminate purchases in the
open market and cause the Fund to issue the remaining portion of the dividend or
distribution in shares at a price equal to the greater of (a) net asset value or
(b) 95% of the then current market price. In this case, the number of shares
received by a Plan participant will be based on the weighted average of prices
paid for shares purchased in the open market and the price at which the Fund
issues the remaining shares. To the extent First Data is unable to stop open
market purchases and cause the Fund to issue the remaining shares, the average
per share purchase price paid by First Data may exceed the net asset value of
the Common Stock, resulting in the acquisition of fewer shares than if the
dividend or capital gains distribution had been paid in Common Stock
16
<PAGE>
- --------------------------------------------------------------------------------
Dividend Reinvestment Plan (unaudited) (continued)
- --------------------------------------------------------------------------------
issued by the Fund at net asset value. First Data will begin to purchase Common
Stock on the open market as soon as practicable after the payment date of the
dividend and capital gains distribution, but in no event shall such purchases
continue later than 30 days after that date, except when necessary to comply
with applicable provisions of the federal securities laws.
First Data maintains all shareholder accounts in the Plan and furnishes
written confirmations of all transactions in each account, including information
needed by a shareholder for personal and tax records. The automatic reinvestment
of dividends and capital gains distributions will not relieve Plan participants
of any income tax that may be payable on the dividends or capital gains
distributions. Common Stock in the account of each Plan participant will be held
by First Data in uncertificated form in the name of the Plan participant.
Plan participants are subject to no charge for reinvesting dividends and
capital gains distributions under the Plan. First Data's fees for handling the
reinvestment of dividends and capital gains distributions will be paid by the
Fund. No brokerage charges apply with respect to shares of Common Stock issued
directly by the Fund under the Plan. Each Plan participant will, however, bear a
proportionate share of brokerage commissions incurred with respect to any open
market purchases made under the Plan.
Experience under the Plan may indicate that changes to it are desirable.
The Fund reserves the right to amend or terminate the Plan as applied to any
dividend or capital gains distribution paid subsequent to written notice of the
change sent to participants at least 30 days before the record date for the
dividend or capital gains distribution. The Plan may also be amended or
terminated by First Data, with the Fund's prior written consent, on at least 30
days' written notice to Plan participants. All correspondence concerning the
Plan should be directed by mail to First Data Investor Services Group, Inc.,
P.O. Box 8030, Boston, Massachusetts 02266 or by telephone at 1-800-331-1710.
- --------------------------------------------------------------------------------
Additional Shareholder Information (unaudited)
- --------------------------------------------------------------------------------
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940, as amended, that from time to time the Fund may purchase
shares of its common stock in the open market.
17
<PAGE>
Greenwich Street
----------
CALIFORNIA
MUNICIPAL FUND INC.
DIRECTORS
Donald R. Foley
Paul Hardin
Heath B. McLendon, Chairman
Roderick C. Rasmussen
John P. Toolan
Joseph H. Fleiss, Emeritus
C. Richard Youngdahl, Emeritus
OFFICERS
Heath B. McLendon
President and Chief Executive Officer
Lewis E. Daidone
Senior Vice President and Treasurer
Joseph P. Deane
Vice President and Investment Officer
Thomas M. Reynolds
Controller
Christina T. Sydor
Secretary
INVESTMENT MANAGER
Mutual Management Corp.
CUSTODIAN
PNC Bank, N.A.
SHAREHOLDER
SERVICING AGENT
First Data Investor Services Group, Inc.
P.O. Box 8030
Boston, MA 02266
This report is submitted for the general information of the shareholders of
Greenwich Street California Municipal Fund Inc. It is not authorized for
distribution to prospective investors unless accompanied or preceded by a
current Prospectus for the Fund, which contains information concerning the
Fund's investment policies and expenses as well as other pertinent information.
Greenwich Street California
Municipal Fund Inc.
388 Greenwich Street
New York, New York 10013
FD01108 4/98
