UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number | 811-03706 | |||||
AMERICAN CENTURY CALIFORNIA TAX-FREE AND MUNICIPAL FUNDS | ||||||
(Exact name of registrant as specified in charter) | ||||||
4500 MAIN STREET, KANSAS CITY, MISSOURI | 64111 | |||||
(Address of principal executive offices) | (Zip Code) | |||||
CHARLES A. ETHERINGTON 4500 MAIN STREET, KANSAS CITY, MISSOURI 64111 | ||||||
(Name and address of agent for service) | ||||||
Registrant’s telephone number, including area code: | 816-531-5575 | |||||
Date of fiscal year end: | 08-31 | |||||
Date of reporting period: | 08-31-2018 |
ITEM 1. REPORTS TO STOCKHOLDERS.
![acihorizblkd26.jpg](https://capedge.com/proxy/N-CSR/0000717316-18-000021/acihorizblkd26.jpg)
Annual Report | |
August 31, 2018 | |
California High-Yield Municipal Fund | |
Investor Class (BCHYX) | |
I Class (BCHIX) | |
Y Class (ACYHX) | |
A Class (CAYAX) | |
C Class (CAYCX) |
Table of Contents |
President’s Letter | 2 | |
Performance | 3 | |
Portfolio Commentary | ||
Fund Characteristics | ||
Shareholder Fee Example | ||
Schedule of Investments | ||
Statement of Assets and Liabilities | ||
Statement of Operations | ||
Statement of Changes in Net Assets | ||
Notes to Financial Statements | ||
Financial Highlights | ||
Report of Independent Registered Public Accounting Firm | ||
Management | ||
Approval of Management Agreement | ||
Additional Information |
Any opinions expressed in this report reflect those of the author as of the date of the report, and do not necessarily represent the opinions of American Century Investments® or any other person in the American Century Investments organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century Investments disclaims any responsibility to update such opinions. These opinions may not be relied upon as investment advice and, because investment decisions made by American Century Investments funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century Investments fund. Security examples are used for representational purposes only and are not intended as recommendations to purchase or sell securities. Performance information for comparative indices and securities is provided to American Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.
President’s Letter |
![jthomasrev0514.jpg](https://capedge.com/proxy/N-CSR/0000717316-18-000021/jthomasrev0514.jpg)
Dear Investor:
Thank you for reviewing this annual report for the 12 months ended August 31, 2018. Annual reports help convey important information about fund returns, including market factors that affected performance during the reporting period. For additional, updated investment and market insights, we encourage you to visit our website, americancentury.com.
Tax Reform, Rising Rates Led to Muted Municipal Bond Returns
Fixed-income investors faced a challenging backdrop as the reporting period unfolded. Early on, improving economic data, along with the Federal Reserve’s (Fed’s) efforts to normalize monetary policy, helped push U.S. Treasury yields higher. In addition to these influences, uncertainty regarding federal tax reform also weighed on the municipal bond (muni) market. Debate surrounding certain provisions related to the muni market pressured returns ahead of Congress’s December 2017 vote on the tax-reform bill. However, the final legislation was devoid of many surprises and left intact the tax-exempt status of most munis.
Heightened market volatility resurfaced in early 2018. Positive economic and jobs data and rising inflation expectations helped drive Treasury yields to their highest levels in several years. In response, the Fed assumed a more hawkish tone and upped its rate-hike outlook for 2018. On the political front, President Trump’s administration announced a series of tariffs that fueled fears of a global trade war, which contributed to the broad market unrest.
Volatility eased somewhat by the end of the reporting period. Tariffs and other geopolitical issues sparked a flight to quality, and Treasury yields retreated from their earlier highs. Overall, a slowdown in muni issuance, particularly in the second half of the period, coupled with healthy investor demand for munis aided returns. For the 12-month period, national and California munis advanced slightly and outperformed Treasuries. Returns for high-yield munis were stronger, bolstered by investor demand for yield.
With inflationary pressures mounting, interest rates rising, and the implications of tax reform still unfolding, fixed-income investors will continue to face evolving opportunities and challenges. We believe this scenario warrants a disciplined, diversified, and risk-aware approach, using professionally managed portfolios in pursuit of investment goals. We appreciate your continued trust and confidence in us.
Sincerely,
![image48a01.jpg](https://capedge.com/proxy/N-CSR/0000717316-18-000021/image48a01.jpg)
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Performance |
Total Returns as of August 31, 2018 | ||||||
Average Annual Returns | ||||||
Ticker Symbol | 1 year | 5 years | 10 years | Since Inception | Inception Date | |
Investor Class | BCHYX | 2.38% | 6.28% | 5.44% | — | 12/30/86 |
S&P Municipal Bond California 50% Investment Grade/50% High Yield Index | — | 3.35% | 7.33% | — | — | — |
Bloomberg Barclays Municipal Bond Index | — | 0.49% | 4.11% | 4.32% | — | — |
I Class | BCHIX | 2.58% | 6.47% | — | 5.90% | 3/1/10 |
Y Class | ACYHX | 2.59% | — | — | 4.77% | 4/10/17 |
A Class | CAYAX | 1/31/03 | ||||
No sales charge | 2.12% | 6.02% | 5.17% | — | ||
With sales charge | -2.46% | 5.04% | 4.69% | — | ||
C Class | CAYCX | 1.36% | 5.23% | 4.39% | — | 1/31/03 |
Average annual returns since inception are presented when ten years of performance history is not available. Fund returns would have been lower if a portion of the fees had not been waived.
Effective December 31, 2017, the fund's investment advisor selected a different benchmark for comparison purposes. The advisor believes the S&P Municipal Bond California 50% Investment Grade/50% High Yield Index is more reflective of the fund's strategy. Because the S&P Municipal Bond California 50% Investment Grade/50% High Yield Index total return data is first available as of December 30, 2011, returns for the Bloomberg Barclays Municipal Bond Index are also shown to cover the 10 year period.
Sales charges include initial sales charges and contingent deferred sales charges (CDSCs), as applicable. A Class shares have a 4.50% maximum initial sales charge and may be subject to a maximum CDSC of 1.00%. C Class shares redeemed within 12 months of purchase are subject to a maximum CDSC of 1.00%. The SEC requires that mutual funds provide performance information net of maximum sales charges in all cases where charges could be applied.
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Total returns for periods less than one year are not annualized. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. For additional information about the fund, please consult the prospectus.
3
Growth of $10,000 Over 10 Years |
$10,000 investment made August 31, 2008 |
Performance for other share classes will vary due to differences in fee structure. |
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Value on August 31, 2018 | |
Investor Class — $16,982 | |
Bloomberg Barclays Municipal Bond Index — $15,263 | |
Since S&P Municipal Bond California 50% Investment Grade/50% High Yield Index total return data is only available from December 2011, it is not included in the line chart. Ending value of Investor Class would have been lower if a portion of the fees had not been waived.
Total Annual Fund Operating Expenses | ||||
Investor Class | I Class | Y Class | A Class | C Class |
0.50% | 0.30% | 0.27% | 0.75% | 1.50% |
The total annual fund operating expenses shown is as stated in the fund’s prospectus current as of the date of this report. The prospectus may vary from the expense ratio shown elsewhere in this report because it is based on a different time period, includes acquired fund fees and expenses, and, if applicable, does not include fee waivers or expense reimbursements.
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Total returns for periods less than one year are not annualized. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. For additional information about the fund, please consult the prospectus.
4
Portfolio Commentary |
Portfolio Managers: Alan Kruss, Joseph Gotelli, and Steven Permut
Performance Summary
California High-Yield Municipal returned 2.38%* for the 12 months ended August 31, 2018. By comparison, the S&P Municipal Bond California 50% Investment Grade/50% High Yield Index returned 3.35%. Fund returns reflect operating expenses, while index returns do not.
In general, healthy municipal bond (muni) market fundamentals and favorable supply/demand trends helped the broad muni market overcome several challenges during the period. These challenges included market uncertainty ahead of the December 2017 vote on tax-reform legislation, heightened bond market volatility, and rising U.S. Treasury yields. Investment-grade munis advanced fractionally and generally outperformed U.S. Treasuries and the broad U.S. investment-grade bond market, both of which declined for the period. Lower-quality munis sharply outperformed their higher-quality counterparts, as investor demand for yield boosted performance among riskier securities. Within the broad muni universe, short- and intermediate-maturity munis underperformed longer-maturity securities, and revenue bonds generally outperformed general obligation (GO) bonds.
In addition, California munis modesty outperformed national munis, largely due to the federal tax-reform legislation passed in December 2017. The legislation caps state and local tax deductions, thereby increasing the marginal value of tax-exempt income to California investors. This led to spread tightening between California munis and national munis.
Broad Fiscal Backdrop Remained Healthy; Credit Fundamentals Were Stable
State and local finances in California and across the U.S. remained relatively healthy, as economic growth and employment trends continued to improve. In addition, a recent U.S. Supreme Court ruling allowing states to collect taxes on online sales is likely to aid state finances. Muni issuance declined slightly from year-ago levels, but demand remained healthy, which helped support muni market gains.
In general, muni credit quality trends in California and nationwide remained stable, despite ongoing high-profile credit challenges for certain issuers, such as Illinois and Puerto Rico. Overall, muni defaults were rare, and muni credit-rating upgrades slightly outpaced downgrades. Mounting legacy costs related to pensions and retiree health care obligations may continue to pressure select isolated credits (such as Illinois, New Jersey, and Connecticut), but we do not believe these issues are indicative of a systemic market-wide problem.
Security Selection, Duration Positioning Detracted from Results
Overall, security selection was the primary driver of the portfolio’s underperformance compared with the index. In particular, our selections among charter schools, special tax entities, and tobacco settlement bonds weighed on relative results. Conversely, our security selections among toll facility, airport, and water and sewer bonds aided performance.
The portfolio’s duration positioning was another significant detractor. Specifically, the portfolio’s longer-than-index duration during the first quarter of 2018 (when interest rates took a sharp upward turn) detracted from relative results. As rates stabilized, we maintained this duration strategy through the end of the reporting period to take advantage of reduced muni supply in 2018.
* All fund returns referenced in this commentary are for Investor Class shares. Performance for other share classes will vary due to differences in fee structure; when Investor Class performance exceeds that of the index, other share classes may not. See page 3 for returns for all share classes.
5
Muni issuance had accelerated in late 2017, as issuers rushed to market ahead of the vote on tax-reform legislation. Consequently, muni supply declined in 2018.
On a positive note, sector allocation contributed to performance. Specifically, underweight positions in higher-quality sectors, including pre-refunded securities and state and local GO bonds, added to performance. An underweight position in the tobacco settlement sector detracted from relative results.
In addition, underweight positions relative to the index in securities with higher-credit-quality ratings also helped performance. Lower-credit-quality securities performed well and generally outperformed higher-quality securities.
Portfolio Positioning
We expect muni issuance to remain relatively subdued, largely due to the effects of tax reform. We also expect demand for munis to remain healthy, particularly in high-tax states, such as California, where the elimination and reduction of certain federal tax deductions may increase the attractiveness of munis. However, with market volatility remaining in play, investors likely will remain somewhat cautious. We expect to maintain our duration and yield curve positions, finding little incentive to alter our strategies in the current environment. We will continue to focus on security selection, generally favoring revenue bonds over GO bonds and seeking attractive opportunities among lower-rated investment-grade munis. As always, fundamental credit research will drive our investment decisions.
6
Fund Characteristics |
August 31, 2018 | |
Portfolio at a Glance | |
Weighted Average Life to Maturity | 18.5 years |
Average Duration (Modified) | 5.6 years |
Top Five Sectors | % of fund investments |
Special Tax | 39% |
Hospital | 15% |
Tobacco Settlement | 10% |
Toll Facilities | 7% |
Charter School | 6% |
Types of Investments in Portfolio | % of net assets |
Municipal Securities | 98.7% |
Other Assets and Liabilities | 1.3% |
7
Shareholder Fee Example |
Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption/exchange fees; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in your fund and to compare these costs with the ongoing cost of investing in other mutual funds.
The example is based on an investment of $1,000 made at the beginning of the period and held for the entire period from March 1, 2018 to August 31, 2018.
Actual Expenses
The table provides information about actual account values and actual expenses for each class. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. First, identify the share class you own. Then simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
If you hold Investor Class shares of any American Century Investments fund, or I Class shares of the American Century Diversified Bond Fund, in an American Century Investments account (i.e., not a financial intermediary or retirement plan account), American Century Investments may charge you a $12.50 semiannual account maintenance fee if the value of those shares is less than $10,000. We will redeem shares automatically in one of your accounts to pay the $12.50 fee. In determining your total eligible investment amount, we will include your investments in all personal accounts (including American Century Investments Brokerage accounts) registered under your Social Security number. Personal accounts include individual accounts, joint accounts, UGMA/UTMA accounts, personal trusts, Coverdell Education Savings Accounts and IRAs (including traditional, Roth, Rollover, SEP-, SARSEP- and SIMPLE-IRAs), and certain other retirement accounts. If you have only business, business retirement, employer-sponsored or American Century Investments Brokerage accounts, you are currently not subject to this fee. If you are subject to the Account Maintenance Fee, your account value could be reduced by the fee amount.
Hypothetical Example for Comparison Purposes
The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund’s share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption/exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
8
Beginning Account Value 3/1/18 | Ending Account Value 8/31/18 | Expenses Paid During Period(1) 3/1/18 - 8/31/18 | Annualized Expense Ratio(1) | |
Actual | ||||
Investor Class | $1,000 | $1,023.40 | $2.55 | 0.50% |
I Class | $1,000 | $1,023.50 | $1.53 | 0.30% |
Y Class | $1,000 | $1,024.50 | $1.38 | 0.27% |
A Class | $1,000 | $1,022.10 | $3.82 | 0.75% |
C Class | $1,000 | $1,018.30 | $7.63 | 1.50% |
Hypothetical | ||||
Investor Class | $1,000 | $1,022.69 | $2.55 | 0.50% |
I Class | $1,000 | $1,023.69 | $1.53 | 0.30% |
Y Class | $1,000 | $1,023.84 | $1.38 | 0.27% |
A Class | $1,000 | $1,021.43 | $3.82 | 0.75% |
C Class | $1,000 | $1,017.64 | $7.63 | 1.50% |
(1) | Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 184, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses. |
9
Schedule of Investments |
AUGUST 31, 2018
Principal Amount | Value | |||||
MUNICIPAL SECURITIES — 98.7% | ||||||
California — 97.4% | ||||||
91 Express Lanes Toll Road Rev., 5.00%, 8/15/30 | $ | 2,400,000 | $ | 2,696,400 | ||
ABAG Finance Authority for Nonprofit Corps. Rev., (Jackson Laboratory), 5.00%, 7/1/37 | 2,000,000 | 2,168,180 | ||||
ABC Unified School District GO, Capital Appreciation, 0.00%, 8/1/21 (NATL)(1) | 1,000,000 | 944,900 | ||||
Alameda Community Facilities District Special Tax, 5.00%, 9/1/42 | 1,250,000 | 1,373,675 | ||||
Alameda Corridor Transportation Authority Rev., 5.00%, 10/1/26 | 2,000,000 | 2,273,520 | ||||
Alameda Corridor Transportation Authority Rev., 5.00%, 10/1/27 (AGM) | 2,000,000 | 2,277,660 | ||||
Alameda Corridor Transportation Authority Rev., 5.00%, 10/1/35 | 2,270,000 | 2,548,302 | ||||
Antelope Valley Healthcare District Rev., 5.00%, 3/1/26 | 5,000,000 | 5,504,150 | ||||
Antelope Valley Healthcare District Rev., 5.00%, 3/1/46 | 5,000,000 | 5,258,000 | ||||
Bay Area Toll Authority Rev., VRDN, 2.26%, 9/6/18, resets weekly off the MUNIPSA plus 0.70% | 1,450,000 | 1,454,365 | ||||
Bay Area Toll Authority Rev., VRDN, 2.66%, 9/6/18, resets weekly off the MUNIPSA plus 1.10% | 2,500,000 | 2,581,650 | ||||
Bay Area Toll Authority Rev., VRDN, 2.81%, 9/6/18, resets weekly off the MUNIPSA plus 1.25% | 1,000,000 | 1,039,880 | ||||
Beaumont Special Tax, (Beaumont Community Facilities District No. 93-1), 5.00%, 9/1/43 | 1,605,000 | 1,771,824 | ||||
Beaumont Special Tax, (Beaumont Community Facilities District No. 93-1), 5.00%, 9/1/48 | 2,855,000 | 3,146,153 | ||||
Berryessa Union School District GO, Capital Appreciation, 0.00%, 8/1/21 (AGM)(1) | 1,190,000 | 1,126,383 | ||||
Berryessa Union School District GO, Capital Appreciation, 0.00%, 8/1/22 (AGM)(1) | 1,220,000 | 1,121,375 | ||||
Berryessa Union School District GO, Capital Appreciation, 0.00%, 8/1/23 (AGM)(1) | 1,000,000 | 892,580 | ||||
California County Tobacco Securitization Agency Rev., (Alameda County Tobacco Securitization Corp.), 0.00%, 6/1/50(1) | 22,520,000 | 3,173,744 | ||||
California County Tobacco Securitization Agency Rev., (Gold Country Settlement Funding Corp.), 5.25%, 6/1/46 | 1,000,000 | 999,920 | ||||
California County Tobacco Securitization Agency Rev., (Los Angeles County Securitization Corp.), 5.45%, 6/1/28 | 2,000,000 | 2,012,720 | ||||
California County Tobacco Securitization Agency Rev., (Los Angeles County Securitization Corp.), 5.65%, 6/1/41 | 1,500,000 | 1,506,420 | ||||
California County Tobacco Securitization Agency Rev., (Los Angeles County Securitization Corp.), 0.00%, 6/1/46(1) | 15,975,000 | 2,970,232 | ||||
California Educational Facilities Authority Rev., (Chapman University), 5.00%, 4/1/25 | 715,000 | 835,442 | ||||
California Educational Facilities Authority Rev., (Chapman University), 5.00%, 4/1/31 (GA: Brandman University) | 1,820,000 | 1,951,932 | ||||
California Educational Facilities Authority Rev., (Loma Linda University), 5.00%, 4/1/30 | 575,000 | 667,472 | ||||
California Educational Facilities Authority Rev., (Loma Linda University), 5.00%, 4/1/31 | 650,000 | 750,263 | ||||
California Educational Facilities Authority Rev., (Loma Linda University), 5.00%, 4/1/32 | 500,000 | 575,085 |
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Principal Amount | Value | |||||
California Educational Facilities Authority Rev., (Loma Linda University), 5.00%, 4/1/33 | $ | 575,000 | $ | 659,008 | ||
California Educational Facilities Authority Rev., (Loma Linda University), 5.00%, 4/1/34 | 1,250,000 | 1,426,550 | ||||
California Educational Facilities Authority Rev., (Loma Linda University), 5.00%, 4/1/35 | 1,250,000 | 1,420,500 | ||||
California Health Facilities Financing Authority Rev., (Adventist Health System / West Obligated Group), 4.00%, 3/1/24 | 2,250,000 | 2,449,822 | ||||
California Health Facilities Financing Authority Rev., (Lucile Salter Packard Children's Hospital at Stanford Obligated Group), 5.00%, 8/15/26 | 1,020,000 | 1,128,140 | ||||
California Health Facilities Financing Authority Rev., (Scripps Health Obligated Group), 5.50%, 10/1/20 | 1,500,000 | 1,504,470 | ||||
California Health Facilities Financing Authority Rev., (Sutter Health Obligated Group), 5.00%, 11/15/24 | 1,710,000 | 1,999,828 | ||||
California Infrastructure & Economic Development Bank Rev., (Colburn School), VRDN, 2.56%, 9/6/18, resets weekly off the MUNIPSA plus 1.00% | 2,190,000 | 2,208,462 | ||||
California Infrastructure & Economic Development Bank Rev., (Pacific Gas & Electric Co.), VRDN, 1.50%, 9/4/18, resets daily off the remarketing agent (LOC: Union Bank N.A.) | 1,200,000 | 1,200,000 | ||||
California Infrastructure & Economic Development Bank Rev., (Pacific Gas & Electric Co.), VRDN, 1.50%, 9/4/18, resets daily off the remarketing agent (LOC: Union Bank N.A.) | 3,800,000 | 3,800,000 | ||||
California Mobilehome Park Financing Authority Rev., (Millennium Housing of California), 5.50%, 12/15/41 | 2,000,000 | 2,001,920 | ||||
California Municipal Finance Authority Rev., (Azusa Pacific University), 5.00%, 4/1/41 | 1,860,000 | 2,025,912 | ||||
California Municipal Finance Authority Rev., (Biola University, Inc.), 5.00%, 10/1/25 | 1,210,000 | 1,404,955 | ||||
California Municipal Finance Authority Rev., (Biola University, Inc.), 5.00%, 10/1/26 | 355,000 | 415,261 | ||||
California Municipal Finance Authority Rev., (Bowles Hall Foundation), 5.00%, 6/1/50 | 1,750,000 | 1,885,572 | ||||
California Municipal Finance Authority Rev., (California Baptist University), 5.00%, 11/1/46(2) | 2,000,000 | 2,187,400 | ||||
California Municipal Finance Authority Rev., (Caritas Affordable Housing, Inc.), 5.00%, 8/15/20 | 600,000 | 632,268 | ||||
California Municipal Finance Authority Rev., (Caritas Affordable Housing, Inc.), 5.00%, 8/15/22 | 360,000 | 394,596 | ||||
California Municipal Finance Authority Rev., (Community Hospitals of Central California Obligated Group), 5.00%, 2/1/27 | 1,000,000 | 1,164,550 | ||||
California Municipal Finance Authority Rev., (Community Hospitals of Central California Obligated Group), 5.00%, 2/1/46 | 3,615,000 | 3,945,303 | ||||
California Municipal Finance Authority Rev., (Creative Center of Los Altos), 4.00%, 11/1/26(2) | 625,000 | 630,344 | ||||
California Municipal Finance Authority Rev., (Creative Center of Los Altos), 4.00%, 11/1/36(2) | 1,400,000 | 1,342,264 | ||||
California Municipal Finance Authority Rev., (Creative Center of Los Altos), 4.50%, 11/1/46(2) | 2,100,000 | 2,104,158 | ||||
California Municipal Finance Authority Rev., (Eisenhower Medical Center), 5.00%, 7/1/35 | 3,500,000 | 3,884,160 | ||||
California Municipal Finance Authority Rev., (Eisenhower Medical Center), 5.00%, 7/1/35 | 1,500,000 | 1,664,640 | ||||
California Municipal Finance Authority Rev., (Eisenhower Medical Center), 5.00%, 7/1/36 | 1,580,000 | 1,748,365 | ||||
California Municipal Finance Authority Rev., (Eisenhower Medical Center), 5.00%, 7/1/37 | 1,500,000 | 1,656,255 |
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Principal Amount | Value | |||||
California Municipal Finance Authority Rev., (Eisenhower Medical Center), 5.00%, 7/1/42 | $ | 1,750,000 | $ | 1,922,585 | ||
California Municipal Finance Authority Rev., (Eisenhower Medical Center), 5.00%, 7/1/47 | 3,000,000 | 3,284,040 | ||||
California Municipal Finance Authority Rev., (Emerson College), 5.00%, 1/1/42 | 5,250,000 | 5,911,605 | ||||
California Municipal Finance Authority Rev., (Northbay Healthcare Group Obligated Group), 5.00%, 11/1/24 | 1,000,000 | 1,112,210 | ||||
California Municipal Finance Authority Rev., (Northbay Healthcare Group Obligated Group), 5.00%, 11/1/25 | 1,000,000 | 1,121,060 | ||||
California Municipal Finance Authority Rev., (Northbay Healthcare Group Obligated Group), 5.00%, 11/1/26 | 500,000 | 562,990 | ||||
California Municipal Finance Authority Rev., (Northbay Healthcare Group Obligated Group), 5.00%, 11/1/35 | 350,000 | 376,821 | ||||
California Municipal Finance Authority Rev., (Northbay Healthcare Group Obligated Group), 5.00%, 11/1/40 | 500,000 | 534,615 | ||||
California Municipal Finance Authority Rev., (Northbay Healthcare Group Obligated Group), 5.00%, 11/1/44 | 300,000 | 320,088 | ||||
California Municipal Finance Authority Rev., (Northbay Healthcare Group Obligated Group), 5.25%, 11/1/47 | 1,600,000 | 1,741,408 | ||||
California Municipal Finance Authority Rev., (River Charter Schools), 5.50%, 6/1/38(2) | 800,000 | 827,416 | ||||
California Municipal Finance Authority Rev., (River Charter Schools), 5.50%, 6/1/48(2) | 1,810,000 | 1,856,245 | ||||
California Municipal Finance Authority Rev., (River Charter Schools), 5.50%, 6/1/53(2) | 1,805,000 | 1,842,436 | ||||
California Municipal Finance Authority Rev., (Santa Rosa Academy LLC), 5.125%, 7/1/35(2) | 905,000 | 945,535 | ||||
California Municipal Finance Authority Rev., (Santa Rosa Academy LLC), 5.375%, 7/1/45(2) | 1,400,000 | 1,471,596 | ||||
California Municipal Finance Authority Rev., (Touro College and University System Obligated Group), 5.25%, 1/1/34 | 950,000 | 1,041,029 | ||||
California Municipal Finance Authority Rev., (Touro College and University System Obligated Group), 5.25%, 1/1/40 | 1,750,000 | 1,905,155 | ||||
California Pollution Control Financing Authority Rev., (Pacific Gas & Electric Co.), VRDN, 1.48%, 9/4/18, resets daily off the remarketing agent (LOC: TD Bank N.A.) | 2,600,000 | 2,600,000 | ||||
California Public Finance Authority Rev., (Henry Mayo Newhall Memorial Hospital), 5.00%, 10/15/47 | 3,500,000 | 3,772,930 | ||||
California School Finance Authority Rev., (52nd & Crenshaw LLC), 6.00%, 10/1/49 | 700,000 | 746,802 | ||||
California School Finance Authority Rev., (Alliance for College Ready Public Schools Obligated Group), 5.00%, 7/1/31 | 4,000,000 | 4,392,720 | ||||
California School Finance Authority Rev., (Alliance for College Ready Public Schools Obligated Group), 5.00%, 7/1/45(2) | 5,000,000 | 5,335,650 | ||||
California School Finance Authority Rev., (Aspire Public Schools Obligated Group), 5.00%, 8/1/27(2) | 985,000 | 1,088,898 | ||||
California School Finance Authority Rev., (Aspire Public Schools Obligated Group), 5.00%, 8/1/28(2) | 1,285,000 | 1,415,543 | ||||
California School Finance Authority Rev., (Aspire Public Schools Obligated Group), 5.00%, 8/1/29(2) | 795,000 | 873,188 | ||||
California School Finance Authority Rev., (Aspire Public Schools Obligated Group), 5.00%, 8/1/30(2) | 400,000 | 437,540 | ||||
California School Finance Authority Rev., (Aspire Public Schools Obligated Group), 5.00%, 8/1/31(2) | 500,000 | 544,680 | ||||
California School Finance Authority Rev., (Aspire Public Schools Obligated Group), 5.00%, 8/1/40(2) | 1,000,000 | 1,071,000 |
12
Principal Amount | Value | |||||
California School Finance Authority Rev., (Aspire Public Schools Obligated Group), 5.00%, 8/1/46(2) | $ | 1,000,000 | $ | 1,067,240 | ||
California School Finance Authority Rev., (Bright Star Schools Obligated Group), 5.00%, 6/1/37(2) | 1,800,000 | 1,873,548 | ||||
California School Finance Authority Rev., (Bright Star Schools Obligated Group), 5.00%, 6/1/47(2) | 1,565,000 | 1,615,205 | ||||
California School Finance Authority Rev., (Bright Star Schools Obligated Group), 5.00%, 6/1/54(2) | 1,660,000 | 1,701,218 | ||||
California School Finance Authority Rev., (Downtown College Prep Obligated Group), 4.00%, 6/1/26(2) | 2,525,000 | 2,550,023 | ||||
California School Finance Authority Rev., (Downtown College Prep Obligated Group), 4.50%, 6/1/31(2) | 1,500,000 | 1,534,365 | ||||
California School Finance Authority Rev., (Downtown College Prep Obligated Group), 5.00%, 6/1/46(2) | 4,630,000 | 4,773,437 | ||||
California School Finance Authority Rev., (Downtown College Prep Obligated Group), 5.00%, 6/1/51(2) | 2,000,000 | 2,048,840 | ||||
California School Finance Authority Rev., (Ednovate Obligated Group), 5.00%, 6/1/30(2) | 325,000 | 347,760 | ||||
California School Finance Authority Rev., (Ednovate Obligated Group), 5.00%, 6/1/37(2) | 430,000 | 451,388 | ||||
California School Finance Authority Rev., (Ednovate Obligated Group), 5.00%, 6/1/48(2) | 1,100,000 | 1,143,329 | ||||
California School Finance Authority Rev., (Ednovate Obligated Group), 5.00%, 6/1/56(2) | 1,000,000 | 1,032,080 | ||||
California School Finance Authority Rev., (Encore Education Obligated Group), 5.00%, 6/1/42(2) | 2,010,000 | 1,820,718 | ||||
California School Finance Authority Rev., (Encore Education Obligated Group), 5.00%, 6/1/52(2) | 2,190,000 | 1,922,886 | ||||
California School Finance Authority Rev., (Green Dot Public Schools Obligated Group), 5.00%, 8/1/45(2) | 3,500,000 | 3,711,400 | ||||
California School Finance Authority Rev., (Kepler Education, Inc.), 5.75%, 5/1/37(2) | 1,050,000 | 1,005,911 | ||||
California School Finance Authority Rev., (Kepler Education, Inc.), 5.875%, 5/1/47(2) | 1,425,000 | 1,352,211 | ||||
California School Finance Authority Rev., (Kipp Schools), 4.125%, 7/1/24 | 420,000 | 448,993 | ||||
California School Finance Authority Rev., (Kipp Schools), 5.00%, 7/1/34 | 500,000 | 545,220 | ||||
California School Finance Authority Rev., (Kipp Schools), 5.00%, 7/1/37(2) | 1,180,000 | 1,312,349 | ||||
California School Finance Authority Rev., (Kipp Schools), 5.125%, 7/1/44 | 700,000 | 758,646 | ||||
California School Finance Authority Rev., (Kipp Schools), 5.00%, 7/1/45(2) | 1,650,000 | 1,786,471 | ||||
California School Finance Authority Rev., (Larchmont Schools), 5.00%, 6/1/33(2) | 500,000 | 534,255 | ||||
California School Finance Authority Rev., (Larchmont Schools), 5.00%, 6/1/43(2) | 550,000 | 577,764 | ||||
California School Finance Authority Rev., (Larchmont Schools), 5.00%, 6/1/55(2) | 1,000,000 | 1,039,390 | ||||
California School Finance Authority Rev., (Rocketship Education Obligated Group), 5.00%, 6/1/21(2) | 940,000 | 967,241 | ||||
California School Finance Authority Rev., (Rocketship Education Obligated Group), 5.00%, 6/1/26(2) | 500,000 | 535,960 | ||||
California School Finance Authority Rev., (Rocketship Education Obligated Group), 5.00%, 6/1/31(2) | 870,000 | 915,640 | ||||
California School Finance Authority Rev., (Rocketship Education Obligated Group), 5.00%, 6/1/36(2) | 1,000,000 | 1,039,920 |
13
Principal Amount | Value | |||||
California School Finance Authority Rev., (Rocketship Education Obligated Group), 5.00%, 6/1/37(2) | $ | 360,000 | $ | 377,104 | ||
California School Finance Authority Rev., (Rocketship Education Obligated Group), 5.00%, 6/1/46(2) | 2,100,000 | 2,165,247 | ||||
California School Finance Authority Rev., (Rocketship Education Obligated Group), 5.00%, 6/1/53(2) | 1,550,000 | 1,596,345 | ||||
California School Finance Authority Rev., (Summit Public Schools Obligated Group), 5.00%, 6/1/37(2) | 1,000,000 | 1,092,350 | ||||
California School Finance Authority Rev., (Summit Public Schools Obligated Group), 5.00%, 6/1/47(2) | 1,870,000 | 2,023,864 | ||||
California School Finance Authority Rev., (Summit Public Schools Obligated Group), 4.30%, 6/1/53(2) | 2,935,000 | 2,919,092 | ||||
California State Public Works Board Rev., 5.00%, 4/1/25 | 1,500,000 | 1,663,125 | ||||
California State Public Works Board Rev., 5.75%, 10/1/31 | 1,000,000 | 1,112,770 | ||||
California State Public Works Board Rev., 5.00%, 12/1/31 | 975,000 | 1,067,547 | ||||
California State Public Works Board Rev., 5.00%, 4/1/37 | 5,465,000 | 5,972,097 | ||||
California State Public Works Board Rev., 5.00%, 11/1/38 | 2,350,000 | 2,638,509 | ||||
California State Public Works Board Rev., 5.00%, 9/1/39 | 7,000,000 | 7,893,060 | ||||
California Statewide Communities Development Authority Rev., (899 Charleston LLC), 5.25%, 11/1/44(2) | 1,500,000 | 1,589,580 | ||||
California Statewide Communities Development Authority Rev., (Adventist Health System/West Obligated Group), 5.00%, 3/1/35 | 1,785,000 | 2,024,136 | ||||
California Statewide Communities Development Authority Rev., (American Baptist Homes of the West Obligated Group), 5.00%, 10/1/43 (GA: American Baptist Homes Foundation) | 1,200,000 | 1,266,804 | ||||
California Statewide Communities Development Authority Rev., (American Baptist Homes of the West Obligated Group), 5.00%, 10/1/45 | 2,400,000 | 2,594,064 | ||||
California Statewide Communities Development Authority Rev., (Be.group), 7.25%, 11/15/41(2) | 2,500,000 | 2,644,850 | ||||
California Statewide Communities Development Authority Rev., (California Baptist University), 3.00%, 11/1/22(2) | 2,000,000 | 2,012,620 | ||||
California Statewide Communities Development Authority Rev., (California Baptist University), 3.50%, 11/1/27(2) | 2,630,000 | 2,673,658 | ||||
California Statewide Communities Development Authority Rev., (California Baptist University), 5.00%, 11/1/32(2) | 3,090,000 | 3,494,234 | ||||
California Statewide Communities Development Authority Rev., (California Baptist University), 5.00%, 11/1/41(2) | 4,450,000 | 4,928,375 | ||||
California Statewide Communities Development Authority Rev., (CHF-Irvine LLC), 5.00%, 5/15/40 | 1,000,000 | 1,112,490 | ||||
California Statewide Communities Development Authority Rev., (Collis P and Howard Huntington Memorial Hospital Obligated Group), 5.00%, 7/1/34 | 1,500,000 | 1,652,370 | ||||
California Statewide Communities Development Authority Rev., (Collis P and Howard Huntington Memorial Hospital Obligated Group), 5.00%, 7/1/44 | 2,760,000 | 3,017,260 | ||||
California Statewide Communities Development Authority Rev., (Cottage Health System Obligated Group), 5.25%, 11/1/30 | 1,250,000 | 1,332,250 | ||||
California Statewide Communities Development Authority Rev., (Episcopal Communities & Services for Seniors), 5.00%, 5/15/42 | 1,500,000 | 1,599,780 | ||||
California Statewide Communities Development Authority Rev., (Henry Mayo Newhall Memorial Hospital), 5.25%, 10/1/43 (AGM) | 1,000,000 | 1,104,170 | ||||
California Statewide Communities Development Authority Rev., (Independence Support LLC), 7.00%, 6/1/45(6) | 7,000,000 | 4,219,180 | ||||
California Statewide Communities Development Authority Rev., (Kaiser Credit Group), VRDN, 1.38%, 9/5/18, resets weekly off the remarketing agent | 16,945,000 | 16,945,000 |
14
Principal Amount | Value | |||||
California Statewide Communities Development Authority Rev., (Lancer Educational Housing LLC), 5.00%, 6/1/46(2) | $ | 3,500,000 | $ | 3,788,890 | ||
California Statewide Communities Development Authority Rev., (Loma Linda University Medical Center Obligated Group), 5.00%, 12/1/26(2) | 2,000,000 | 2,233,340 | ||||
California Statewide Communities Development Authority Rev., (Loma Linda University Medical Center Obligated Group), 5.00%, 12/1/29(2) | 3,155,000 | 3,511,673 | ||||
California Statewide Communities Development Authority Rev., (Loma Linda University Medical Center Obligated Group), 5.00%, 12/1/36(2) | 1,000,000 | 1,090,950 | ||||
California Statewide Communities Development Authority Rev., (Loma Linda University Medical Center Obligated Group), 5.00%, 12/1/41(2) | 1,700,000 | 1,837,938 | ||||
California Statewide Communities Development Authority Rev., (Loma Linda University Medical Center Obligated Group), 5.25%, 12/1/44 | 5,000,000 | 5,425,050 | ||||
California Statewide Communities Development Authority Rev., (Loma Linda University Medical Center Obligated Group), 5.00%, 12/1/46(2) | 9,900,000 | 10,668,834 | ||||
California Statewide Communities Development Authority Rev., (Loma Linda University Medical Center Obligated Group), 5.50%, 12/1/54 | 4,605,000 | 5,001,306 | ||||
California Statewide Communities Development Authority Rev., (Loma Linda University Medical Center Obligated Group), 5.25%, 12/1/56(2) | 10,250,000 | 11,066,617 | ||||
California Statewide Communities Development Authority Rev., (Loma Linda University Medical Center Obligated Group), 5.50%, 12/1/58(2) | 4,500,000 | 4,967,145 | ||||
California Statewide Communities Development Authority Rev., (Redlands Community Hospital), 4.00%, 10/1/41 | 6,500,000 | 6,531,070 | ||||
California Statewide Communities Development Authority Rev., (Viamonte Senior Living 1, Inc.), 3.00%, 7/1/25 (California Mortgage Insurance) | 2,500,000 | 2,539,875 | ||||
California Statewide Communities Development Authority Rev., (Viamonte Senior Living 1, Inc.), 3.00%, 7/1/26 (California Mortgage Insurance) | 2,750,000 | 2,786,382 | ||||
California Statewide Communities Development Authority Rev., (Viamonte Senior Living 1, Inc.), 3.00%, 7/1/27 (California Mortgage Insurance) | 1,500,000 | 1,517,130 | ||||
California Statewide Communities Development Authority Special Assessment, 2.70%, 9/2/22 | 345,000 | 346,953 | ||||
California Statewide Communities Development Authority Special Assessment, 3.00%, 9/2/23 | 355,000 | 360,939 | ||||
California Statewide Communities Development Authority Special Assessment, 3.00%, 9/2/24 | 365,000 | 368,800 | ||||
California Statewide Communities Development Authority Special Assessment, 5.00%, 9/2/35 | 1,920,000 | 2,088,557 | ||||
California Statewide Communities Development Authority Special Assessment, 5.00%, 9/2/45 | 3,810,000 | 4,124,858 | ||||
California Statewide Communities Development Authority Special Tax, 5.00%, 9/1/36 | 1,000,000 | 1,091,630 | ||||
California Statewide Communities Development Authority Special Tax, 5.00%, 9/1/37 | 4,330,000 | 4,721,172 | ||||
California Statewide Communities Development Authority Special Tax, 5.00%, 9/1/45 | 1,500,000 | 1,626,810 | ||||
California Statewide Communities Development Authority Special Tax, 5.00%, 9/1/47 | 1,650,000 | 1,812,756 | ||||
California Statewide Communities Development Authority Special Tax, 5.00%, 9/1/48 | 7,330,000 | 8,113,210 |
15
Principal Amount | Value | |||||
Capistrano Unified School District Community Facilities District Special Tax, 3.20%, 9/1/44 | $ | 1,610,000 | $ | 1,424,512 | ||
Capistrano Unified School District Community Facilities District Special Tax, 4.00%, 9/1/46 | 3,000,000 | 3,045,720 | ||||
Capistrano Unified School District Community Facilities District Special Tax, (Capistrano Unified School District Community Facilities District No. 98-1B), 3.75%, 9/1/43 | 1,185,000 | 1,171,716 | ||||
Capistrano Unified School District Community Facilities District Special Tax, (Capistrano Unified School District Community Facilities District No. 98-1B), 3.75%, 9/1/44 | 3,500,000 | 3,425,905 | ||||
Capistrano Unified School District Community Facilities District Special Tax, (Capistrano Unified School District Community Facilities District No. 98-1B), 3.75%, 9/1/48 | 1,610,000 | 1,561,974 | ||||
Cathedral City Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 8/1/29 (AGM) | 1,250,000 | 1,409,575 | ||||
Cathedral City Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 8/1/30 (AGM) | 1,315,000 | 1,478,284 | ||||
Cathedral City Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 8/1/31 (AGM) | 1,380,000 | 1,548,153 | ||||
Chula Vista Community Facilities District Special Tax, (Chula Vista Community Facilities District No. 06-1), 5.00%, 9/1/43 | 595,000 | 658,802 | ||||
Chula Vista Community Facilities District Special Tax, (Chula Vista Community Facilities District No. 06-1), 5.00%, 9/1/48 | 1,000,000 | 1,105,250 | ||||
Corona-Norco Unified School District Special Tax, 4.00%, 9/1/45 | 2,000,000 | 2,020,460 | ||||
Del Mar Race Track Authority Rev., 5.00%, 10/1/29 | 1,010,000 | 1,115,070 | ||||
Del Mar Race Track Authority Rev., 5.00%, 10/1/35 | 2,000,000 | 2,171,060 | ||||
Dixon Special Tax, 5.00%, 9/1/45 | 4,780,000 | 5,138,261 | ||||
Duarte Unified School District GO, Capital Appreciation, 0.00%, 11/1/23 (AGM)(1) | 1,150,000 | 1,018,981 | ||||
Dublin Community Facilities District Improvement Area No. 1 Special Tax, 5.00%, 9/1/37 | 1,150,000 | 1,276,431 | ||||
Dublin Community Facilities District Improvement Area No. 1 Special Tax, 5.00%, 9/1/47 | 2,840,000 | 3,113,293 | ||||
East Garrison Public Finance Authority Special Tax, 5.00%, 9/1/46 | 1,250,000 | 1,371,463 | ||||
Eastern Municipal Water District Special Tax, 5.00%, 9/1/36 | 3,575,000 | 3,891,030 | ||||
El Dorado County Special Tax, 5.00%, 9/1/27 | 1,055,000 | 1,197,478 | ||||
El Dorado County Special Tax, 5.00%, 9/1/29 | 1,225,000 | 1,372,025 | ||||
El Dorado County Special Tax, 5.00%, 9/1/30 | 1,325,000 | 1,477,123 | ||||
El Dorado County Special Tax, 5.00%, 9/1/31 | 1,280,000 | 1,421,274 | ||||
El Dorado County Special Tax, 5.00%, 9/1/32 | 1,355,000 | 1,498,562 | ||||
El Dorado County Special Tax, 4.00%, 9/1/43 | 1,250,000 | 1,260,338 | ||||
El Dorado County Special Tax, 4.00%, 9/1/46 | 2,350,000 | 2,365,980 | ||||
El Dorado County Special Tax, 5.00%, 9/1/48 | 2,850,000 | 3,117,643 | ||||
Elk Grove Finance Authority Special Tax, 4.00%, 9/1/22 | 1,310,000 | 1,389,792 | ||||
Elk Grove Finance Authority Special Tax, 4.00%, 9/1/24 | 1,705,000 | 1,824,861 | ||||
Elk Grove Finance Authority Special Tax, 4.00%, 9/1/26 | 2,140,000 | 2,284,728 | ||||
Elk Grove Finance Authority Special Tax, 5.00%, 9/1/43 | 1,040,000 | 1,137,282 | ||||
Elk Grove Finance Authority Special Tax, 5.00%, 9/1/46 | 3,500,000 | 3,822,315 | ||||
Elk Grove Finance Authority Special Tax, 5.00%, 9/1/48 | 1,250,000 | 1,362,400 | ||||
Emeryville Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/31 (AGM) | 590,000 | 673,332 | ||||
Emeryville Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/34 (AGM) | 1,000,000 | 1,125,220 | ||||
Escondido Joint Powers Financing Authority Rev., 5.00%, 9/1/31 | 1,355,000 | 1,483,657 |
16
Principal Amount | Value | |||||
Folsom Ranch Financing Authority Special Tax, 5.00%, 9/1/47 | $ | 4,325,000 | $ | 4,717,061 | ||
Folsom Ranch Financing Authority Special Tax, (Folsom CA-Community Facilities District No. 20), 5.00%, 9/1/33 | 530,000 | 592,794 | ||||
Folsom Ranch Financing Authority Special Tax, (Folsom CA-Community Facilities District No. 20), 5.00%, 9/1/38 | 845,000 | 933,387 | ||||
Folsom Ranch Financing Authority Special Tax, (Folsom CA-Community Facilities District No. 20), 5.00%, 9/1/48 | 1,675,000 | 1,842,533 | ||||
Fontana Special Tax, 5.00%, 9/1/46 | 1,000,000 | 1,105,080 | ||||
Fontana Special Tax, (Fontana Community Facilities District No. 31 Citrus Heights North), 5.00%, 9/1/35 | 1,365,000 | 1,529,455 | ||||
Foothill-Eastern Transportation Corridor Agency Rev., 6.50%, 1/15/43 | 4,000,000 | 4,681,880 | ||||
Foothill-Eastern Transportation Corridor Agency Rev., 6.00%, 1/15/49 | 27,500,000 | 31,985,250 | ||||
Foothill-Eastern Transportation Corridor Agency Rev., Capital Appreciation, 0.00%, 1/15/24(3) | 2,200,000 | 2,021,030 | ||||
Foothill-Eastern Transportation Corridor Agency Rev., Capital Appreciation, 0.00%, 1/15/42(1) | 6,000,000 | 2,155,800 | ||||
Foothill-Eastern Transportation Corridor Agency Rev., VRDN, 5.50%, 1/15/23, resets off the remarketing agent | 3,750,000 | 4,205,587 | ||||
Fremont Community Facilities District No. 1 Special Tax, 5.00%, 9/1/40 | 3,000,000 | 3,274,890 | ||||
Fremont Community Facilities District No. 1 Special Tax, 5.00%, 9/1/45 | 2,000,000 | 2,178,100 | ||||
Golden State Tobacco Securitization Corp. Rev., 5.00%, 6/1/24 | 1,500,000 | 1,690,710 | ||||
Golden State Tobacco Securitization Corp. Rev., 5.00%, 6/1/25 | 1,000,000 | 1,139,480 | ||||
Golden State Tobacco Securitization Corp. Rev., 5.00%, 6/1/26 | 1,000,000 | 1,148,330 | ||||
Golden State Tobacco Securitization Corp. Rev., 5.00%, 6/1/29 | 1,500,000 | 1,669,380 | ||||
Golden State Tobacco Securitization Corp. Rev., 5.00%, 6/1/29 | 1,545,000 | 1,774,510 | ||||
Golden State Tobacco Securitization Corp. Rev., 5.30%, 6/1/37 | 7,000,000 | 7,305,270 | ||||
Golden State Tobacco Securitization Corp. Rev., 5.00%, 6/1/47 | 10,000,000 | 10,280,500 | ||||
Golden State Tobacco Securitization Corp. Rev., 5.00%, 6/1/47 | 19,000,000 | 19,532,950 | ||||
Golden State Tobacco Securitization Corp. Rev., 5.25%, 6/1/47 | 7,500,000 | 7,824,750 | ||||
Golden State Tobacco Securitization Corp. Rev., Capital Appreciation, 0.00%, 6/1/47(1) | 45,000,000 | 7,988,850 | ||||
Hemet Unified School District Financing Authority Special Tax, 5.00%, 9/1/34 | 350,000 | 380,874 | ||||
Hemet Unified School District Financing Authority Special Tax, 5.00%, 9/1/39 | 2,100,000 | 2,263,737 | ||||
Hesperia Special Tax, 5.00%, 9/1/29 | 1,060,000 | 1,164,442 | ||||
Hesperia Special Tax, 5.00%, 9/1/35 | 2,690,000 | 2,915,368 | ||||
Hesperia Public Financing Authority Tax Allocation, 5.50%, 9/1/32 (XLCA) | 3,000,000 | 3,004,590 | ||||
Hesperia Public Financing Authority Tax Allocation, 5.50%, 9/1/37 (XLCA) | 2,025,000 | 2,028,078 | ||||
Huntington Beach Community Facilities District Special Tax, 5.375%, 9/1/33 | 1,700,000 | 1,857,760 | ||||
Independent Cities Finance Authority Rev., (Augusta Communities LLC), 5.00%, 5/15/39 | 2,500,000 | 2,631,425 | ||||
Independent Cities Finance Authority Rev., (Millennium Housing Corp.), 5.00%, 9/15/36 | 1,000,000 | 1,052,990 | ||||
Independent Cities Finance Authority Rev., (Millennium Housing Corp.), 5.00%, 9/15/36 | 1,500,000 | 1,573,020 | ||||
Independent Cities Finance Authority Rev., (Millennium Housing LLC), 6.75%, 8/15/46 | 2,500,000 | 2,754,100 |
17
Principal Amount | Value | |||||
Independent Cities Finance Authority Rev., (Millennium Housing LLC), 5.00%, 10/15/47 | $ | 4,000,000 | $ | 4,223,040 | ||
Inland Valley Development Agency Tax Allocation, 5.25%, 9/1/37 | 1,110,000 | 1,237,306 | ||||
Irvine Special Assessment, 5.00%, 9/2/24 | 700,000 | 772,534 | ||||
Irvine Special Assessment, 5.00%, 9/2/26 | 600,000 | 655,932 | ||||
Irvine Special Assessment, 5.00%, 9/2/29 | 700,000 | 763,098 | ||||
Irvine Special Assessment, 5.00%, 9/2/30 | 350,000 | 380,702 | ||||
Irvine Special Assessment, 5.00%, 9/2/42 | 1,500,000 | 1,640,415 | ||||
Irvine Special Tax, 5.00%, 9/1/39 | 1,000,000 | 1,079,850 | ||||
Irvine Special Tax, 5.00%, 9/1/44 | 500,000 | 538,525 | ||||
Irvine Special Tax, 4.00%, 9/1/45 | 7,500,000 | 7,581,825 | ||||
Irvine Special Tax, 5.00%, 9/1/49 | 4,500,000 | 4,834,170 | ||||
Irvine Unified School District Special Tax, 5.00%, 9/1/29 | 550,000 | 632,830 | ||||
Irvine Unified School District Special Tax, 5.00%, 9/1/29 | 700,000 | 805,420 | ||||
Irvine Unified School District Special Tax, 5.00%, 9/1/31 | 420,000 | 479,002 | ||||
Irvine Unified School District Special Tax, 5.00%, 9/1/34 | 500,000 | 563,990 | ||||
Irvine Unified School District Special Tax, 6.70%, 9/1/35 | 515,000 | 549,309 | ||||
Irvine Unified School District Special Tax, 5.00%, 3/1/57 | 3,500,000 | 3,876,285 | ||||
Jurupa Community Services District Special Tax, 5.00%, 9/1/37 | 250,000 | 264,325 | ||||
Jurupa Community Services District Special Tax, 5.00%, 9/1/40 | 1,605,000 | 1,764,473 | ||||
Jurupa Community Services District Special Tax, 5.00%, 9/1/42 | 1,000,000 | 1,054,630 | ||||
Jurupa Public Financing Authority Special Tax, 5.00%, 9/1/42 | 1,000,000 | 1,104,850 | ||||
Jurupa Unified School District Special Tax, 3.625%, 9/1/42 | 1,300,000 | 1,246,583 | ||||
Jurupa Unified School District Special Tax, 4.00%, 9/1/47 | 1,000,000 | 1,007,520 | ||||
La Verne COP, (Brethren Hillcrest Homes), 5.00%, 5/15/36 | 1,100,000 | 1,153,053 | ||||
Lake Elsinore Special Tax, (Lake Elsinore Community Facilities District No. 2016-2), 5.00%, 9/1/43 | 2,470,000 | 2,734,858 | ||||
Lake Elsinore Special Tax, (Lake Elsinore Community Facilities District No. 2016-2), 5.00%, 9/1/48 | 3,640,000 | 4,023,110 | ||||
Lake Elsinore Facilities Financing Authority Special Tax, 4.00%, 9/1/44 | 535,000 | 541,859 | ||||
Lake Elsinore Public Financing Authority Special Tax, 5.00%, 9/1/34 | 535,000 | 581,026 | ||||
Lake Elsinore Public Financing Authority Special Tax, 5.00%, 9/1/40 | 1,925,000 | 2,098,904 | ||||
Lake Elsinore Unified School District Community Facilities District Special Tax, 4.00%, 9/1/42 | 600,000 | 609,060 | ||||
Lake Elsinore Unified School District Community Facilities District Special Tax, 4.00%, 9/1/47 | 900,000 | 910,170 | ||||
Lammersville Joint Unified School District Special Tax, 5.00%, 9/1/27 | 450,000 | 513,594 | ||||
Lammersville Joint Unified School District Special Tax, 5.00%, 9/1/28 | 505,000 | 573,407 | ||||
Lammersville Joint Unified School District Special Tax, 5.00%, 9/1/30 | 1,300,000 | 1,464,229 | ||||
Lammersville Joint Unified School District Special Tax, 5.00%, 9/1/32 | 1,510,000 | 1,690,807 | ||||
Lammersville Joint Unified School District Special Tax, 6.00%, 9/1/43 | 1,250,000 | 1,431,888 | ||||
Lammersville Joint Unified School District Special Tax, 5.00%, 9/1/47 | 3,750,000 | 4,110,862 | ||||
Long Beach Bond Finance Authority Rev., 5.50%, 11/15/37 | 1,150,000 | 1,480,763 | ||||
Los Angeles Community Facilities District Special Tax, 6.40%, 9/1/22 | 620,000 | 623,807 |
18
Principal Amount | Value | |||||
Los Angeles County COP, 5.00%, 3/1/23 | $ | 1,000,000 | $ | 1,136,940 | ||
Los Angeles County Schools COP, 5.00%, 6/1/19 (AGM) | 1,200,000 | 1,230,804 | ||||
Los Angeles County Schools COP, 5.00%, 6/1/20 (AGM) | 1,305,000 | 1,381,225 | ||||
Los Angeles County Schools COP, 5.00%, 6/1/21 (AGM) | 1,895,000 | 2,061,608 | ||||
Los Angeles Department of Water & Power Rev., 5.00%, 7/1/30 | 3,500,000 | 3,966,515 | ||||
Los Angeles Department of Water & Power System Rev., VRDN, 1.34%, 9/4/18, resets daily off the remarketing agent (SBBPA: Bank of America N.A.) | 4,800,000 | 4,800,000 | ||||
Los Angeles Unified School District COP, 5.00%, 10/1/29 | 350,000 | 388,399 | ||||
Los Angeles Unified School District GO, 5.00%, 7/1/30 | 1,155,000 | 1,330,791 | ||||
M-S-R Energy Authority Rev., 7.00%, 11/1/34 | 1,700,000 | 2,411,059 | ||||
M-S-R Energy Authority Rev., 6.50%, 11/1/39 | 4,000,000 | 5,618,360 | ||||
Marina Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/21 | 215,000 | 230,003 | ||||
Marina Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/21 | 125,000 | 133,946 | ||||
Marina Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/22 | 225,000 | 244,357 | ||||
Marina Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/22 | 100,000 | 108,761 | ||||
Marina Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/23 | 110,000 | 120,819 | ||||
Marina Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/23 | 100,000 | 110,030 | ||||
Marina Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/24 | 250,000 | 276,788 | ||||
Marina Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/25 | 260,000 | 289,099 | ||||
Marina Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/25 | 175,000 | 195,050 | ||||
Marina Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/26 | 115,000 | 128,631 | ||||
Marina Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/26 | 135,000 | 151,101 | ||||
Marina Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/27 | 100,000 | 112,449 | ||||
Marina Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/28 | 100,000 | 112,987 | ||||
Marina Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/28 | 100,000 | 111,915 | ||||
Marina Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/33 | 340,000 | 377,801 | ||||
Marina Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/33 | 250,000 | 275,330 | ||||
Marina Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/38 | 400,000 | 439,744 | ||||
Marina Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/38 | 250,000 | 271,923 | ||||
Menifee Union School District Special Tax, 5.00%, 9/1/43 | 1,000,000 | 1,102,630 | ||||
Menifee Union School District Special Tax, 5.00%, 9/1/48 | 1,500,000 | 1,650,030 | ||||
Menifee Union School District Public Financing Authority Special Tax, 5.00%, 9/1/24 | 1,200,000 | 1,368,048 | ||||
Menifee Union School District Public Financing Authority Special Tax, 5.00%, 9/1/26 | 755,000 | 866,997 |
19
Principal Amount | Value | |||||
Menifee Union School District Public Financing Authority Special Tax, 4.00%, 9/1/27 | $ | 420,000 | $ | 449,312 | ||
Menifee Union School District Public Financing Authority Special Tax, 5.00%, 9/1/28 | 325,000 | 370,984 | ||||
Moorpark Rev., (Villa del Arroyo Moorpark LLC), 6.50%, 5/15/41 | 4,000,000 | 4,355,240 | ||||
Murrieta Community Facilities District Special Tax, 5.00%, 9/1/42 | 655,000 | 719,085 | ||||
Murrieta Community Facilities District Special Tax, 5.00%, 9/1/46 | 825,000 | 902,418 | ||||
Murrieta Financing Authority Special Tax, 5.00%, 9/1/31 | 1,735,000 | 1,867,918 | ||||
Murrieta Valley Unified School District Public Financing Authority Special Tax, 5.00%, 9/1/23 | 2,530,000 | 2,857,863 | ||||
Murrieta Valley Unified School District Public Financing Authority Special Tax, 5.00%, 9/1/30 | 1,735,000 | 1,953,610 | ||||
Murrieta Valley Unified School District Public Financing Authority Special Tax, 5.00%, 9/1/31 | 1,915,000 | 2,144,838 | ||||
Murrieta Valley Unified School District Public Financing Authority Special Tax, 5.00%, 9/1/32 | 1,155,000 | 1,292,757 | ||||
Napa Special Tax, 4.00%, 9/1/25 | 155,000 | 166,732 | ||||
Napa Special Tax, 4.00%, 9/1/26 | 365,000 | 391,561 | ||||
Napa Special Tax, 4.00%, 9/1/33 | 315,000 | 325,089 | ||||
Napa Special Tax, 4.00%, 9/1/34 | 400,000 | 412,192 | ||||
Napa Special Tax, 4.00%, 9/1/42 | 2,270,000 | 2,314,696 | ||||
Napa Special Tax, 4.00%, 9/1/47 | 4,070,000 | 4,119,084 | ||||
Norman Y Mineta San Jose International Airport SJC Rev., 5.25%, 3/1/34 | 2,605,000 | 2,808,242 | ||||
Northern California Power Agency Rev., 5.00%, 7/1/31 | 1,090,000 | 1,205,911 | ||||
Northern Inyo County Local Hospital District Rev., 3.875%, 12/1/27 | 4,380,000 | 4,341,193 | ||||
Ontario Community Facilities District No. 24 Special Tax, 5.00%, 9/1/26 | 390,000 | 443,855 | ||||
Ontario Community Facilities District No. 24 Special Tax, 5.00%, 9/1/41 | 2,065,000 | 2,256,673 | ||||
Ontario Community Facilities District No. 24 Special Tax, 5.00%, 9/1/46 | 1,000,000 | 1,089,200 | ||||
Ontario Community Facilities District No. 28 Special Tax, 5.00%, 9/1/42 | 1,000,000 | 1,088,240 | ||||
Ontario Community Facilities District No. 28 Special Tax, 5.00%, 9/1/47 | 500,000 | 542,710 | ||||
Ontario Community Facilities District No. 30 Special Tax, 4.00%, 9/1/42 | 1,395,000 | 1,404,430 | ||||
Ontario Community Facilities District No. 30 Special Tax, 4.00%, 9/1/48 | 2,000,000 | 2,006,000 | ||||
Ontario Community Facilities District No. 31 Special Tax, 5.00%, 9/1/42 | 1,050,000 | 1,147,692 | ||||
Ontario Community Facilities District No. 34 Special Tax, 4.00%, 9/1/48 | 1,000,000 | 998,260 | ||||
Orange County Community Facilities District Special Tax, 5.25%, 8/15/45 | 4,000,000 | 4,415,200 | ||||
Orange County Community Facilities District Special Tax, 5.00%, 8/15/46 | 10,000,000 | 10,916,300 | ||||
Orange County Community Facilities District Special Tax, 5.00%, 8/15/47 | 2,550,000 | 2,830,398 | ||||
Oxnard Financing Authority Rev., 5.00%, 6/1/34 (AGM) | 2,750,000 | 3,070,127 | ||||
Palm Desert Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 10/1/22 (BAM) | 400,000 | 449,704 | ||||
Palm Desert Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 10/1/24 (BAM) | 475,000 | 555,204 |
20
Principal Amount | Value | |||||
Palm Desert Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 10/1/25 (BAM) | $ | 850,000 | $ | 1,009,358 | ||
Palm Desert Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 10/1/26 (BAM) | 600,000 | 721,656 | ||||
Palm Springs Financing Authority Rev., 5.00%, 6/1/35 | 4,000,000 | 4,362,160 | ||||
Palomar Health Rev., 5.00%, 11/1/27 | 2,005,000 | 2,252,998 | ||||
Palomar Health Rev., 5.00%, 11/1/36 | 8,465,000 | 9,195,953 | ||||
Palomar Health Rev., 4.00%, 11/1/39 | 8,875,000 | 8,712,854 | ||||
Palomar Health Rev., 5.00%, 11/1/39 | 8,250,000 | 8,914,290 | ||||
Palomar Health Rev., (Palomar Health Obligated Group), 5.00%, 11/1/30 | 3,000,000 | 3,330,210 | ||||
Palomar Health Rev., (Palomar Health Obligated Group), 5.00%, 11/1/31 | 2,125,000 | 2,350,951 | ||||
Palomar Health Rev., (Palomar Health Obligated Group), 5.00%, 11/1/42 | 10,000,000 | 10,863,700 | ||||
Perris Joint Powers Authority Special Tax, 5.00%, 9/1/26 | 1,090,000 | 1,233,913 | ||||
Perris Joint Powers Authority Special Tax, 5.00%, 9/1/27 | 1,000,000 | 1,141,320 | ||||
Perris Joint Powers Authority Special Tax, 5.00%, 9/1/30 | 1,325,000 | 1,492,387 | ||||
Perris Joint Powers Authority Special Tax, 5.00%, 9/1/34 | 1,555,000 | 1,728,491 | ||||
Perris Union High School District Special Tax, 5.00%, 9/1/41 | 4,750,000 | 5,174,745 | ||||
Pleasant Valley School District/Ventura County GO, 5.85%, 8/1/31 (NATL) | 4,835,000 | 5,879,602 | ||||
Poway Unified School District Special Tax, 3.375%, 9/1/42 | 2,475,000 | 2,259,279 | ||||
Poway Unified School District Public Financing Authority Special Tax, 5.00%, 9/1/34 | 995,000 | 1,084,888 | ||||
Poway Unified School District Public Financing Authority Special Tax, 5.00%, 9/1/35 | 990,000 | 1,077,516 | ||||
Poway Unified School District Public Financing Authority Special Tax, 5.00%, 9/1/36 | 1,245,000 | 1,354,261 | ||||
Rancho Cordova Special Tax, 4.00%, 9/1/22 | 400,000 | 426,088 | ||||
Rancho Cordova Special Tax, 4.00%, 9/1/23 | 650,000 | 698,939 | ||||
Rancho Cordova Special Tax, 4.00%, 9/1/24 | 500,000 | 540,030 | ||||
Rancho Cordova Special Tax, 4.00%, 9/1/26 | 1,000,000 | 1,072,040 | ||||
Rancho Cordova Special Tax, 4.00%, 9/1/27 | 425,000 | 452,192 | ||||
Rancho Cordova Special Tax, 4.00%, 9/1/29 | 1,280,000 | 1,340,634 | ||||
Rancho Cordova Special Tax, 4.00%, 9/1/31 | 1,350,000 | 1,398,587 | ||||
Rancho Cordova Special Tax, 4.00%, 9/1/37 | 3,000,000 | 3,059,670 | ||||
Rancho Cordova Special Tax, 5.00%, 9/1/40 | 1,195,000 | 1,299,096 | ||||
Rancho Cordova Special Tax, 4.00%, 9/1/45 | 1,025,000 | 1,028,844 | ||||
Rancho Cordova Special Tax, 5.00%, 9/1/45 | 1,250,000 | 1,354,875 | ||||
Redding Electric System Rev., 5.00%, 6/1/21 | 400,000 | 436,744 | ||||
Redding Electric System Rev., 5.00%, 6/1/23 | 740,000 | 847,085 | ||||
Redwood City Redevelopment Agency Successor Agency Tax Allocation, Capital Appreciation, 0.00%, 7/15/28 (Ambac)(1) | 3,405,000 | 2,460,930 | ||||
Rio Elementary School District Community Facilities District Special Tax, 5.00%, 9/1/35 | 2,550,000 | 2,807,091 | ||||
Rio Elementary School District Community Facilities District Special Tax, 5.50%, 9/1/39 | 1,785,000 | 1,992,970 | ||||
Rio Vista Community Facilities District Special Tax, 5.00%, 9/1/38 | 1,070,000 | 1,179,814 | ||||
Rio Vista Community Facilities District Special Tax, 5.00%, 9/1/48 | 1,190,000 | 1,307,465 | ||||
River Islands Public Financing Authority Special Tax, 5.50%, 9/1/45 | 3,500,000 | 3,744,825 | ||||
River Islands Public Financing Authority Special Tax, 5.50%, 9/1/45 | 5,000,000 | 5,349,750 |
21
Principal Amount | Value | |||||
Riverside County Community Facilities Districts Special Tax, 5.00%, 9/1/30 | $ | 1,035,000 | $ | 1,103,445 | ||
Riverside County Community Facilities Districts Special Tax, 5.00%, 9/1/35 | 2,520,000 | 2,665,354 | ||||
Riverside County Community Facilities Districts Special Tax, 5.00%, 9/1/40 | 2,250,000 | 2,479,612 | ||||
Riverside County Community Facilities Districts Special Tax, 5.00%, 9/1/42 | 1,110,000 | 1,220,378 | ||||
Riverside County Community Facilities Districts Special Tax, 5.00%, 9/1/42 | 3,000,000 | 3,154,740 | ||||
Riverside County Community Facilities Districts Special Tax, 5.00%, 9/1/44 | 2,735,000 | 3,008,746 | ||||
Riverside County Community Facilities Districts Special Tax, 5.00%, 9/1/45 | 540,000 | 591,964 | ||||
Riverside County Transportation Commission Rev., 5.75%, 6/1/44 | 500,000 | 554,000 | ||||
Riverside County Transportation Commission Rev., Capital Appreciation, 0.00%, 6/1/41(1) | 2,000,000 | 770,360 | ||||
Riverside County Transportation Commission Rev., Capital Appreciation, 0.00%, 6/1/42(1) | 3,320,000 | 1,223,387 | ||||
Riverside County Transportation Commission Rev., Capital Appreciation, 0.00%, 6/1/43(1) | 5,000,000 | 1,762,300 | ||||
Riverside Unified School District Special Tax, (Riverside Unified School District Community Facilities District No. 32), 4.00%, 9/1/43 | 1,600,000 | 1,607,856 | ||||
Riverside Unified School District Special Tax, (Riverside Unified School District Community Facilities District No. 32), 4.00%, 9/1/48 | 1,850,000 | 1,853,015 | ||||
Romoland School District Special Tax, 5.00%, 9/1/35 | 4,685,000 | 5,141,694 | ||||
Romoland School District Special Tax, 5.00%, 9/1/38 | 2,900,000 | 3,171,382 | ||||
Romoland School District Special Tax, 5.00%, 9/1/41 | 1,250,000 | 1,386,413 | ||||
Romoland School District Special Tax, 5.00%, 9/1/43 | 2,640,000 | 2,818,570 | ||||
Romoland School District Special Tax, (Romoland School District Community Facilities District No. 2004-1 Heritage Lake), 5.00%, 9/1/43 | 3,000,000 | 3,327,600 | ||||
Romoland School District Special Tax, (Romoland School District Community Facilities District No. 2004-1 Heritage Lake), 5.00%, 9/1/48 | 3,250,000 | 3,598,497 | ||||
Roseville Special Tax, 5.00%, 9/1/32(2) | 1,265,000 | 1,370,653 | ||||
Roseville Special Tax, 5.00%, 9/1/37 | 1,250,000 | 1,372,663 | ||||
Roseville Special Tax, 5.00%, 9/1/38 | 1,650,000 | 1,816,353 | ||||
Roseville Special Tax, 5.00%, 9/1/44 | 1,650,000 | 1,771,605 | ||||
Roseville Special Tax, 5.00%, 9/1/47(2) | 6,500,000 | 6,946,225 | ||||
Roseville Special Tax, (Westbrook Community Facilities District No. 1), 5.00%, 9/1/43 | 2,840,000 | 3,144,533 | ||||
Roseville Special Tax, (Westbrook Community Facilities District No. 1), 5.00%, 9/1/48 | 2,030,000 | 2,243,657 | ||||
Roseville Natural Gas Financing Authority Rev., 5.00%, 2/15/27 | 5,000,000 | 5,716,950 | ||||
Sacramento Special Tax, 5.00%, 9/1/41 | 1,900,000 | 2,074,971 | ||||
Sacramento Special Tax, 5.00%, 9/1/46 | 2,250,000 | 2,442,600 | ||||
Sacramento Special Tax, 5.00%, 9/1/47(2) | 1,900,000 | 1,998,287 | ||||
Sacramento County Special Tax, 5.00%, 9/1/29 | 1,000,000 | 1,135,460 | ||||
Sacramento County Special Tax, 5.00%, 9/1/30 | 1,170,000 | 1,321,679 | ||||
Sacramento County Special Tax, 5.00%, 9/1/31 | 1,355,000 | 1,525,053 | ||||
Sacramento County Special Tax, 5.00%, 9/1/32 | 665,000 | 744,627 | ||||
Sacramento County Special Tax, 5.00%, 9/1/35 | 2,335,000 | 2,605,019 | ||||
Sacramento County Special Tax, 5.00%, 9/1/40 | 2,325,000 | 2,544,178 |
22
Principal Amount | Value | |||||
Sacramento County Special Tax, 5.00%, 9/1/40 | $ | 3,000,000 | $ | 3,327,390 | ||
Sacramento County Special Tax, 5.00%, 9/1/45 | 4,645,000 | 5,069,414 | ||||
Sacramento County Special Tax, 5.00%, 9/1/46 | 3,385,000 | 3,682,068 | ||||
Sacramento Transportation Authority Rev., 5.00%, 10/1/24 | 1,055,000 | 1,181,684 | ||||
San Bernardino County Special Tax, 5.00%, 9/1/33 | 3,000,000 | 3,278,490 | ||||
San Bernardino County Special Tax, 4.00%, 9/1/42 | 700,000 | 707,910 | ||||
San Bernardino County Special Tax, 4.00%, 9/1/48 | 1,000,000 | 1,006,760 | ||||
San Bernardino County Special Tax, (San County Bernardino Community Facilities District No. 2006-1), 5.00%, 9/1/43(4) | 1,300,000 | 1,436,084 | ||||
San Bernardino County Special Tax, (San County Bernardino Community Facilities District No. 2006-1), 5.00%, 9/1/48(4) | 1,200,000 | 1,321,716 | ||||
San Bernardino Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 12/1/21 (AGM) | 3,900,000 | 4,280,484 | ||||
San Bernardino Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 12/1/23 (AGM) | 2,425,000 | 2,765,615 | ||||
San Buenaventura Rev., (Community Memorial Health System), 7.50%, 12/1/41 | 11,100,000 | 12,325,329 | ||||
San Clemente Special Tax, 5.00%, 9/1/46 | 7,620,000 | 8,249,488 | ||||
San Diego Special Tax, 5.00%, 9/1/37 | 975,000 | 1,068,327 | ||||
San Diego County Rev., (Sanford Burnham Prebys Medical Discovery Institute), 5.00%, 11/1/25 | 835,000 | 971,564 | ||||
San Diego County Rev., (Sanford Burnham Prebys Medical Discovery Institute), 5.00%, 11/1/26 | 525,000 | 606,029 | ||||
San Diego County Rev., (Sanford Burnham Prebys Medical Discovery Institute), 5.00%, 11/1/30 | 725,000 | 823,223 | ||||
San Diego County Special Tax, (San County Diego Community Facilities District No. 2008-01), 4.00%, 9/1/43 | 1,255,000 | 1,269,182 | ||||
San Diego County Special Tax, (San County Diego Community Facilities District No. 2008-01), 4.00%, 9/1/48 | 1,250,000 | 1,259,400 | ||||
San Diego County Regional Airport Authority Rev., 5.00%, 7/1/24 | 300,000 | 339,105 | ||||
San Diego County Regional Airport Authority Rev., 5.00%, 7/1/25 | 955,000 | 1,077,145 | ||||
San Diego County Regional Airport Authority Rev., 5.00%, 7/1/26 | 500,000 | 562,730 | ||||
San Diego County Regional Airport Authority Rev., 5.00%, 7/1/44 | 1,500,000 | 1,670,985 | ||||
San Diego Public Facilities Financing Authority Water Rev., 5.00%, 8/1/30 | 2,000,000 | 2,227,480 | ||||
San Diego Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/21 | 390,000 | 428,910 | ||||
San Diego Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/22 | 545,000 | 614,302 | ||||
San Diego Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/23 | 650,000 | 750,497 | ||||
San Diego Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/24 | 700,000 | 822,724 | ||||
San Diego Unified Port District Rev., 5.00%, 9/1/26 | 750,000 | 844,553 | ||||
San Francisco City & County Redevelopment Agency Special Tax, Capital Appreciation, 0.00%, 8/1/43(1) | 5,500,000 | 1,407,285 | ||||
San Francisco City & County Redevelopment Agency Tax Allocation, 5.00%, 8/1/33 | 780,000 | 874,138 | ||||
San Gorgonio Memorial Health Care District GO, 5.00%, 8/1/20 | 1,000,000 | 1,058,120 | ||||
San Gorgonio Memorial Health Care District GO, 5.00%, 8/1/21 | 275,000 | 297,360 | ||||
San Jacinto Community Facilities District Special Tax, 5.00%, 9/1/28 | 1,080,000 | 1,225,044 | ||||
San Jacinto Community Facilities District Special Tax, 5.00%, 9/1/29 | 1,165,000 | 1,313,549 |
23
Principal Amount | Value | |||||
San Jacinto Community Facilities District Special Tax, 5.00%, 9/1/32 | $ | 450,000 | $ | 498,672 | ||
San Jacinto Community Facilities District Special Tax, 5.00%, 9/1/33 | 1,280,000 | 1,427,904 | ||||
San Jacinto Community Facilities District Special Tax, 5.00%, 9/1/34 | 335,000 | 372,470 | ||||
San Joaquin Hills Transportation Corridor Agency Rev., 5.25%, 1/15/44 | 6,000,000 | 6,568,800 | ||||
San Joaquin Hills Transportation Corridor Agency Rev., Capital Appreciation, 0.00%, 1/15/25 (NATL)(1) | 3,090,000 | 2,547,211 | ||||
San Joaquin Hills Transportation Corridor Agency Rev., Capital Appreciation, 0.00%, 1/15/29 (NATL)(1) | 165,000 | 113,545 | ||||
San Joaquin Hills Transportation Corridor Agency Rev., Capital Appreciation, 0.00%, 1/15/31 (NATL)(1) | 16,000,000 | 10,095,840 | ||||
San Joaquin Hills Transportation Corridor Agency Rev., Capital Appreciation, 0.00%, 1/15/32 (NATL)(1) | 290,000 | 174,458 | ||||
San Joaquin Hills Transportation Corridor Agency Rev., Capital Appreciation, 0.00%, 1/15/36 (NATL)(1) | 1,335,000 | 666,659 | ||||
San Mateo Special Tax, 6.00%, 9/1/42 | 500,000 | 554,210 | ||||
San Mateo Special Tax, 5.50%, 9/1/44 | 2,250,000 | 2,438,842 | ||||
Santa Margarita Water District Special Tax, 5.625%, 9/1/43 | 1,250,000 | 1,357,513 | ||||
Santaluz Community Facilities District No. 2 Special Tax, 5.10%, 9/1/21, Prerefunded at 103% of Par(5) | 465,000 | 502,260 | ||||
Saugus-Castaic School Facilities Financing Authority Special Tax, 6.00%, 9/1/43 | 1,475,000 | 1,645,318 | ||||
Saugus/Hart School Facilities Financing Authority Special Tax, 5.00%, 9/1/41 | 1,235,000 | 1,349,299 | ||||
Saugus/Hart School Facilities Financing Authority Special Tax, 5.00%, 9/1/46 | 1,245,000 | 1,355,967 | ||||
Silicon Valley Tobacco Securitization Authority Rev., Capital Appreciation, 0.00%, 6/1/36(1) | 32,000,000 | 11,962,240 | ||||
Silicon Valley Tobacco Securitization Authority Rev., Capital Appreciation, 0.00%, 6/1/41(1) | 11,465,000 | 3,194,149 | ||||
Southern California Public Power Authority Rev., 5.25%, 11/1/19 | 2,445,000 | 2,535,245 | ||||
Southern California Public Power Authority Rev., 5.00%, 11/1/33 | 3,755,000 | 4,451,966 | ||||
Southern Mono Health Care District GO, Capital Appreciation, 0.00%, 8/1/26 (NATL)(1) | 1,800,000 | 1,403,748 | ||||
State of California GO, 5.00%, 11/1/19 | 4,500,000 | 4,682,340 | ||||
State of California GO, 5.00%, 10/1/24 | 14,590,000 | 17,080,805 | ||||
State of California GO, 5.25%, 2/1/30 | 5,000,000 | 5,537,550 | ||||
State of California GO, VRN, 2.56%, 9/6/18, resets weekly off the MUNIPSA plus 1.00% | 800,000 | 801,032 | ||||
State of California GO, VRN, 2.71%, 9/6/18, resets weekly off the MUNIPSA plus 1.15% | 960,000 | 970,224 | ||||
Stockton Public Financing Authority Rev., 5.00%, 9/1/28 (BAM) | 2,215,000 | 2,529,153 | ||||
Stockton Public Financing Authority Rev., 5.00%, 9/1/29 (BAM) | 1,750,000 | 1,989,855 | ||||
Stockton Public Financing Authority Rev., 6.25%, 10/1/40 | 1,750,000 | 2,060,765 | ||||
Stockton Unified School District GO, 5.00%, 8/1/31 | 4,620,000 | 5,328,800 | ||||
Sulphur Springs Union School District Special Tax, (Sulphur Springs School District Community Facilities District No. 2006-1), 5.00%, 9/1/43 | 1,410,000 | 1,543,217 | ||||
Sulphur Springs Union School District Special Tax, (Sulphur Springs School District Community Facilities District No. 2006-1), 5.00%, 9/1/47 | 1,820,000 | 1,987,822 | ||||
Sunnyvale Special Tax, 7.75%, 8/1/32 | 6,500,000 | 6,515,600 |
24
Principal Amount | Value | |||||
Tahoe-Truckee Unified School District GO, Capital Appreciation, 0.00%, 8/1/22 (NATL)(1) | $ | 2,690,000 | $ | 2,472,540 | ||
Tahoe-Truckee Unified School District GO, Capital Appreciation, 0.00%, 8/1/23 (NATL)(1) | 2,220,000 | 1,979,618 | ||||
Tejon Ranch Public Facilities Finance Authority Special Tax, 5.00%, 9/1/45 | 4,000,000 | 4,338,160 | ||||
Temecula Valley Unified School District Community Facilities District Special Tax, (Temecula Valley Unified School District Community Facilities District No. 2014-1), 5.00%, 9/1/43 | 1,000,000 | 1,107,230 | ||||
Tobacco Securitization Authority of Northern California Rev., (Sacramento County Tobacco Securitization Corp.), 5.50%, 6/1/45 | 2,000,000 | 2,008,460 | ||||
Tobacco Securitization Authority of Northern California Rev., (Sacramento County Tobacco Securitization Corp.), Capital Appreciation, 0.00%, 6/1/45(1) | 20,000,000 | 2,436,600 | ||||
Tobacco Securitization Authority of Northern California Rev., (Sacramento County Tobacco Securitization Corp.), Capital Appreciation, 0.00%, 6/1/45(1) | 25,000,000 | 4,956,250 | ||||
Tobacco Securitization Authority of Southern California Rev., (San Diego County Tobacco Asset Securitization Corp.), 5.00%, 6/1/37 | 2,250,000 | 2,259,517 | ||||
Tobacco Securitization Authority of Southern California Rev., (San Diego County Tobacco Asset Securitization Corp.), 5.125%, 6/1/46 | 14,120,000 | 14,179,728 | ||||
Tobacco Securitization Authority of Southern California Rev., (San Diego County Tobacco Asset Securitization Corp.), Capital Appreciation, 0.00%, 6/1/46(1) | 25,000,000 | 3,275,250 | ||||
Tracy Community Facilities District Special Tax, (Tracy Community Facilities District No. 2016-01), 5.00%, 9/1/43 | 2,500,000 | 2,708,475 | ||||
Tracy Community Facilities District Special Tax, (Tracy Community Facilities District No. 2016-01), 5.00%, 9/1/48 | 2,750,000 | 2,967,552 | ||||
Tracy Community Facilities District No. 2006-01 Special Tax, 5.75%, 9/1/36 | 3,105,000 | 3,106,708 | ||||
Tracy Public Financing Authority Special Tax, 4.00%, 9/2/18 | 1,900,000 | 1,900,000 | ||||
Tracy Public Financing Authority Special Tax, 5.00%, 9/2/19 | 2,285,000 | 2,355,858 | ||||
Tracy Public Financing Authority Special Tax, 5.00%, 9/2/20 | 2,100,000 | 2,219,448 | ||||
Tulare Sewer Rev., 5.00%, 11/15/22 (AGM) | 500,000 | 560,475 | ||||
Tulare Sewer Rev., 5.00%, 11/15/24 (AGM) | 500,000 | 580,330 | ||||
Tulare Sewer Rev., 5.00%, 11/15/25 (AGM) | 400,000 | 470,932 | ||||
Tustin Community Facilities District Special Tax, 5.00%, 9/1/37 | 3,330,000 | 3,622,241 | ||||
Tustin Community Facilities District Special Tax, 5.00%, 9/1/40 | 1,100,000 | 1,205,798 | ||||
Tustin Community Facilities District Special Tax, 5.00%, 9/1/45 | 2,200,000 | 2,404,446 | ||||
Upland COP, 4.00%, 1/1/42 | 3,000,000 | 3,030,150 | ||||
Upland COP, 5.00%, 1/1/47 | 2,500,000 | 2,737,625 | ||||
Val Verde Unified School District Special Tax, 5.00%, 9/1/37 | 1,750,000 | 1,890,647 | ||||
Washington Township Health Care District Rev., 5.00%, 7/1/26 | 400,000 | 448,744 | ||||
Washington Township Health Care District Rev., 3.25%, 7/1/27 | 1,000,000 | 1,002,400 | ||||
Washington Township Health Care District Rev., 3.50%, 7/1/28 | 750,000 | 760,905 | ||||
Washington Township Health Care District Rev., 3.75%, 7/1/29 | 1,000,000 | 1,023,570 | ||||
Whittier Rev., (Presbyterian Intercommunity Hospital Obligated Group), 5.00%, 6/1/44 | 3,500,000 | 3,785,775 | ||||
William S Hart Union High School District Special Tax, 5.00%, 9/1/42 | 1,350,000 | 1,476,279 | ||||
William S Hart Union High School District Special Tax, 5.00%, 9/1/47 | 2,350,000 | 2,563,027 | ||||
Woodland Special Tax, 4.00%, 9/1/41 | 2,745,000 | 2,771,187 | ||||
Woodland Special Tax, 4.00%, 9/1/45 | 2,750,000 | 2,770,597 |
25
Principal Amount | Value | |||||
Yuba City Unified School District GO, Capital Appreciation, 0.00%, 3/1/25 (NATL)(1) | $ | 1,500,000 | $ | 1,253,175 | ||
1,187,278,006 | ||||||
Guam — 1.1% | ||||||
Guam Government Rev., 5.125%, 1/1/42 | 1,000,000 | 1,049,860 | ||||
Guam Government Power Authority Rev., 5.00%, 10/1/34 | 850,000 | 895,007 | ||||
Guam Government Power Authority Rev., 5.00%, 10/1/36 | 1,940,000 | 2,114,076 | ||||
Guam Government Power Authority Rev., 5.00%, 10/1/37 | 1,575,000 | 1,713,805 | ||||
Guam Government Waterworks Authority Rev., 5.00%, 7/1/40 | 3,115,000 | 3,439,490 | ||||
Guam Government Waterworks Authority Rev., 5.00%, 1/1/46 | 3,000,000 | 3,269,010 | ||||
Port Authority of Guam Government Rev., 5.00%, 7/1/48 | 1,500,000 | 1,646,325 | ||||
14,127,573 | ||||||
U.S. Virgin Islands — 0.2% | ||||||
Virgin Islands Public Finance Authority Rev., 5.00%, 9/1/33(2) | 2,500,000 | 2,626,225 | ||||
TOTAL INVESTMENT SECURITIES — 98.7% (Cost $1,167,063,351) | 1,204,031,804 | |||||
OTHER ASSETS AND LIABILITIES — 1.3% | 15,333,616 | |||||
TOTAL NET ASSETS — 100.0% | $ | 1,219,365,420 |
FUTURES CONTRACTS SOLD | |||||||||||
Reference Entity | Contracts | Expiration Date | Notional Amount | Underlying Contract Value | Unrealized Appreciation (Depreciation) | ||||||
U.S. Treasury Long Bonds | 332 | December 2018 | $ | 33,200,000 | $ | 47,880,625 | $ | 61,503 |
NOTES TO SCHEDULE OF INVESTMENTS | ||
AGM | - | Assured Guaranty Municipal Corporation |
BAM | - | Build America Mutual Assurance Company |
COP | - | Certificates of Participation |
GA | - | Guaranty Agreement |
GO | - | General Obligation |
LOC | - | Letter of Credit |
MUNIPSA | - | SIFMA Municipal Swap Index |
NATL | - | National Public Finance Guarantee Corporation |
resets | - | The frequency with which a security's coupon changes, based on current market conditions or an underlying index. |
SBBPA | - | Standby Bond Purchase Agreement |
VRDN | - | Variable Rate Demand Note. Interest reset date is indicated. Rate shown is effective at the period end. |
VRN | - | Variable Rate Note. Interest reset date is indicated. Rate shown is effective at the period end. |
XLCA | - | XL Capital Ltd. |
(1) | Security is a zero-coupon bond. Zero-coupon securities are issued at a substantial discount from their value at maturity. |
(2) | Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration, normally to qualified institutional investors. The aggregate value of these securities at the period end was $142,258,538, which represented 11.7% of total net assets. |
(3) | Coupon rate adjusts periodically based upon a predetermined schedule. Interest reset date is indicated. Rate shown is effective at the period end. |
(4) | When-issued security. The issue price and yield are fixed on the date of the commitment, but payment and delivery are scheduled for a future date. |
(5) | Escrowed to maturity in U.S. government securities or state and local government securities. |
(6) | Security is in default. |
See Notes to Financial Statements.
26
Statement of Assets and Liabilities |
AUGUST 31, 2018 | |||
Assets | |||
Investment securities, at value (cost of $1,167,063,351) | $ | 1,204,031,804 | |
Cash | 47,041 | ||
Deposits with broker for futures contracts | 733,050 | ||
Receivable for investments sold | 1,185,200 | ||
Receivable for capital shares sold | 2,166,569 | ||
Interest receivable | 16,433,167 | ||
1,224,596,831 | |||
Liabilities | |||
Payable for investments purchased | 2,756,150 | ||
Payable for capital shares redeemed | 1,460,642 | ||
Payable for variation margin on futures contracts | 42,422 | ||
Accrued management fees | 461,977 | ||
Distribution and service fees payable | 31,901 | ||
Dividends payable | 478,319 | ||
5,231,411 | |||
Net Assets | $ | 1,219,365,420 | |
Net Assets Consist of: | |||
Capital paid in | $ | 1,188,909,117 | |
Distributions in excess of net investment income | (265,691 | ) | |
Accumulated net realized loss | (6,307,962 | ) | |
Net unrealized appreciation | 37,029,956 | ||
$ | 1,219,365,420 |
Net Assets | Shares Outstanding | Net Asset Value Per Share | ||||
Investor Class | $896,098,120 | 85,149,127 | $10.52 | |||
I Class | $243,002,021 | 23,099,164 | $10.52 | |||
Y Class | $5,334 | 507 | $10.52 | |||
A Class | $56,688,222 | 5,386,361 | $10.52* | |||
C Class | $23,571,723 | 2,239,413 | $10.53 |
*Maximum offering price $11.02 (net asset value divided by 0.955).
See Notes to Financial Statements.
27
Statement of Operations |
YEAR ENDED AUGUST 31, 2018 | |||
Investment Income (Loss) | |||
Income: | |||
Interest | $ | 44,724,348 | |
Expenses: | |||
Management fees | 5,124,709 | ||
Distribution and service fees: | |||
A Class | 130,811 | ||
C Class | 268,835 | ||
Trustees' fees and expenses | 69,960 | ||
Other expenses | 983 | ||
5,595,298 | |||
Net investment income (loss) | 39,129,050 | ||
Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investment transactions | 12,203,468 | ||
Futures contract transactions | (7,838 | ) | |
12,195,630 | |||
Change in net unrealized appreciation (depreciation) on: | |||
Investments | (24,576,332 | ) | |
Futures contracts | 61,503 | ||
(24,514,829 | ) | ||
Net realized and unrealized gain (loss) | (12,319,199 | ) | |
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 26,809,851 |
See Notes to Financial Statements.
28
Statement of Changes in Net Assets |
YEARS ENDED AUGUST 31, 2018 AND AUGUST 31, 2017 | ||||||
Increase (Decrease) in Net Assets | August 31, 2018 | August 31, 2017 | ||||
Operations | ||||||
Net investment income (loss) | $ | 39,129,050 | $ | 36,915,556 | ||
Net realized gain (loss) | 12,195,630 | 11,983,850 | ||||
Change in net unrealized appreciation (depreciation) | (24,514,829 | ) | (50,783,956 | ) | ||
Net increase (decrease) in net assets resulting from operations | 26,809,851 | (1,884,550 | ) | |||
Distributions to Shareholders | ||||||
From net investment income: | ||||||
Investor Class | (30,024,592 | ) | (28,324,115 | ) | ||
I Class | (6,987,422 | ) | (4,497,795 | ) | ||
Y Class | (195 | ) | (75 | ) | ||
A Class | (1,709,065 | ) | (3,299,979 | ) | ||
C Class | (673,692 | ) | (793,592 | ) | ||
Decrease in net assets from distributions | (39,394,966 | ) | (36,915,556 | ) | ||
Capital Share Transactions | ||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | 159,939,806 | (57,422,820 | ) | |||
Net increase (decrease) in net assets | 147,354,691 | (96,222,926 | ) | |||
Net Assets | ||||||
Beginning of period | 1,072,010,729 | 1,168,233,655 | ||||
End of period | $ | 1,219,365,420 | $ | 1,072,010,729 | ||
Distributions in excess of net investment income | $ | (265,691 | ) | — |
See Notes to Financial Statements.
29
Notes to Financial Statements |
AUGUST 31, 2018
1. Organization
American Century California Tax-Free and Municipal Funds (the trust) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company and is organized as a Massachusetts business trust. California High-Yield Municipal Fund (the fund) is one fund in a series issued by the trust. The fund’s investment objective is to seek high current income that is exempt from federal and California income taxes.
The fund offers the Investor Class, I Class, Y Class, A Class and C Class. The A Class may incur an initial sales charge. The A Class and C Class may be subject to a contingent deferred sales charge. Sale of the Y Class commenced on April 10, 2017.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently followed by the fund in preparation of its financial statements. The fund is an investment company and follows accounting and reporting guidance in accordance with accounting principles generally accepted in the United States of America. This may require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from these estimates. Management evaluated the impact of events or transactions occurring through the date the financial statements were issued that would merit recognition or disclosure.
Investment Valuations — The fund determines the fair value of its investments and computes its net asset value per share at the close of regular trading (usually 4 p.m. Eastern time) on the New York Stock Exchange (NYSE) on each day the NYSE is open. The Board of Trustees has adopted valuation policies and procedures to guide the investment advisor in the fund’s investment valuation process and to provide methodologies for the oversight of the fund’s pricing function.
Fixed income securities are valued at the evaluated mean as provided by independent pricing services or at the mean of the most recent bid and asked prices as provided by investment dealers. Municipal securities are valued using market models that consider trade data, quotations from dealers and active market makers, relevant yield curve and spread data, creditworthiness, trade data or market information on comparable securities, and other relevant security specific information.
Exchange-traded futures contracts are valued at the settlement price as provided by the appropriate exchange.
If the fund determines that the market price for an investment is not readily available or the valuation methods mentioned above do not reflect an investment’s fair value, such investment is valued as determined in good faith by the Board of Trustees or its delegate, in accordance with policies and procedures adopted by the Board of Trustees. In its determination of fair value, the fund may review several factors including, but not limited to, market information regarding the specific investment or comparable investments and correlation with other investment types, futures indices or general market indicators. Circumstances that may cause the fund to use these procedures to value an investment include, but are not limited to: an investment has been declared in default or is distressed; trading in a security has been suspended during the trading day or a security is not actively trading on its principal exchange; prices received from a regular pricing source are deemed unreliable; or there is a foreign market holiday and no trading occurred.
The fund monitors for significant events occurring after the close of an investment’s primary exchange but before the fund’s net asset value per share is determined. Significant events may include, but are not limited to: corporate announcements and transactions; governmental action and political unrest that could impact a specific investment or an investment sector; or armed conflicts, natural disasters and similar events that could affect investments in a specific country or region.
Security Transactions — Security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes.
30
Investment Income — Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums.
Segregated Assets — In accordance with the 1940 Act, the fund segregates assets on its books and records to cover certain types of investment securities and other financial instruments. American Century Investment Management, Inc. (ACIM) (the investment advisor) monitors, on a daily basis, the securities segregated to ensure the fund designates a sufficient amount of liquid assets, marked-to-market daily. The fund may also receive assets or be required to pledge assets at the custodian bank or with a broker for collateral requirements.
Income Tax Status — It is the fund’s policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Multiple Class — All shares of the fund represent an equal pro rata interest in the net assets of the class to which such shares belong, and have identical voting, dividend, liquidation and other rights and the same terms and conditions, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. Income, non-class specific expenses, and realized and unrealized capital gains and losses of the fund are allocated to each class of shares based on their relative net assets.
Distributions to Shareholders — Distributions from net investment income, if any, are declared daily and paid monthly. Distributions from net realized gains, if any, are generally declared and paid annually.
Indemnifications — Under the trust’s organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
3. Fees and Transactions with Related Parties
Certain officers and trustees of the trust are also officers and/or directors of American Century Companies, Inc. (ACC). The trust's investment advisor, ACIM, the trust's distributor, American Century Investment Services, Inc. (ACIS), and the trust's transfer agent, American Century Services, LLC, are wholly owned, directly or indirectly, by ACC.
Management Fees — The trust has entered into a management agreement with ACIM, under which ACIM provides the fund with investment advisory and management services in exchange for a single, unified management fee (the fee) per class. The agreement provides that all expenses of managing and operating the fund, except distribution and service fees, brokerage expenses, taxes, interest, fees and expenses of the independent trustees (including legal counsel fees), and extraordinary expenses, will be paid by ACIM. The fee is computed and accrued daily based on each class's daily net assets and paid monthly in arrears. The difference in the fee among the classes is a result of their separate arrangements for non-Rule 12b-1 shareholder services. It is not the result of any difference in advisory or custodial fees or other expenses related to the management of the fund’s assets, which do not vary by class. The fee consists of (1) an Investment Category Fee based on the daily net assets of the fund and certain other accounts managed by the investment advisor that are in the same broad investment category as the fund and (2) a Complex Fee based on the assets of all the funds in the American Century Investments family of funds.
31
The Investment Category Fee range, the Complex Fee range and the effective annual management fee for each class for the period ended August 31, 2018 are as follows:
Investment Category Fee Range | Complex Fee Range | Effective Annual Management Fee | |
Investor Class | 0.1925% to 0.3100% | 0.2500% to 0.3100% | 0.49% |
I Class | 0.0500% to 0.1100% | 0.29% | |
Y Class | 0.0200% to 0.0800% | 0.26% | |
A Class | 0.2500% to 0.3100% | 0.49% | |
C Class | 0.2500% to 0.3100% | 0.49% |
Distribution and Service Fees — The Board of Trustees has adopted a separate Master Distribution and Individual Shareholder Services Plan for each of the A Class and C Class (collectively the plans), pursuant to Rule 12b-1 of the 1940 Act. The plans provide that the A Class will pay ACIS an annual distribution and service fee of 0.25%. The plans provide that the C Class will pay ACIS an annual distribution and service fee of 1.00%, of which 0.25% is paid for individual shareholder services and 0.75% is paid for distribution services. The fees are computed and accrued daily based on each class’s daily net assets and paid monthly in arrears. The fees are used to pay financial intermediaries for distribution and individual shareholder services. Fees incurred under the plans during the period ended August 31, 2018 are detailed in the Statement of Operations.
Trustees’ Fees and Expenses — The Board of Trustees is responsible for overseeing the investment advisor’s management and operations of the fund. The trustees receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Trustees. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. During the period, the interfund purchases and sales were $60,060,000 and $52,343,000, respectively. The interfund transactions had no effect on the Statement of Operations in net realized gain (loss) on investment transactions.
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments, for the period ended August 31, 2018 were $722,467,055 and $576,843,430, respectively.
32
5. Capital Share Transactions
Transactions in shares of the fund were as follows (unlimited number of shares authorized):
Year ended August 31, 2018 | Year ended August 31, 2017(1) | |||||||||
Shares | Amount | Shares | Amount | |||||||
Investor Class | ||||||||||
Sold | 23,521,902 | $ | 248,233,352 | 26,189,729 | $ | 273,638,534 | ||||
Issued in reinvestment of distributions | 2,542,455 | 26,798,289 | 2,324,261 | 24,326,354 | ||||||
Redeemed | (20,210,238 | ) | (213,251,737 | ) | (27,686,532 | ) | (288,127,876 | ) | ||
5,854,119 | 61,779,904 | 827,458 | 9,837,012 | |||||||
I Class | ||||||||||
Sold | 13,900,912 | 146,672,880 | 6,250,544 | 65,605,363 | ||||||
Issued in reinvestment of distributions | 574,539 | 6,051,124 | 420,458 | 4,395,823 | ||||||
Redeemed | (4,881,425 | ) | (51,522,192 | ) | (5,736,159 | ) | (59,396,128 | ) | ||
9,594,026 | 101,201,812 | 934,843 | 10,605,058 | |||||||
Y Class | ||||||||||
Sold | — | — | 481 | 5,000 | ||||||
Issued in reinvestment of distributions | 19 | 195 | 7 | 75 | ||||||
19 | 195 | 488 | 5,075 | |||||||
A Class | ||||||||||
Sold | 1,143,922 | 12,046,507 | 2,199,257 | 23,014,296 | ||||||
Issued in reinvestment of distributions | 102,068 | 1,075,988 | 260,115 | 2,712,818 | ||||||
Redeemed | (1,068,975 | ) | (11,336,603 | ) | (9,578,080 | ) | (99,395,422 | ) | ||
177,015 | 1,785,892 | (7,118,708 | ) | (73,668,308 | ) | |||||
C Class | ||||||||||
Sold | 336,526 | 3,550,962 | 519,375 | 5,461,353 | ||||||
Issued in reinvestment of distributions | 56,673 | 597,430 | 60,676 | 634,383 | ||||||
Redeemed | (852,056 | ) | (8,976,389 | ) | (986,201 | ) | (10,297,393 | ) | ||
(458,857 | ) | (4,827,997 | ) | (406,150 | ) | (4,201,657 | ) | |||
Net increase (decrease) | 15,166,322 | $ | 159,939,806 | (5,762,069 | ) | $ | (57,422,820 | ) |
(1) | April 10, 2017 (commencement of sale) through August 31, 2017 for the Y Class. |
6. Fair Value Measurements
The fund’s investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.
• | Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments. |
• | Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars. |
• | Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions). |
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments.
33
As of period end, the fund’s investment securities and unrealized appreciation (depreciation) on futures contracts were classified as Level 2 and Level 1, respectively. The Schedule of Investments provides additional information on the fund’s portfolio holdings.
7. Derivative Instruments
Interest Rate Risk — The fund is subject to interest rate risk in the normal course of pursuing its investment objectives. The value of bonds generally declines as interest rates rise. A fund may enter into futures contracts based on a bond index or a specific underlying security. A fund may purchase futures contracts to gain exposure to increases in market value or sell futures contracts to protect against a decline in market value. Upon entering into a futures contract, a fund will segregate cash, cash equivalents or other appropriate liquid securities on its records in amounts sufficient to meet requirements. Subsequent payments (variation margin) are made or received daily, in cash, by a fund. The variation margin is equal to the daily change in the contract value and is recorded as unrealized gains and losses. A fund recognizes a realized gain or loss when the futures contract is closed or expires. Net realized and unrealized gains or losses occurring during the holding period of futures contracts are a component of net realized gain (loss) on futures contract transactions and change in net unrealized appreciation (depreciation) on futures contracts, respectively. One of the risks of entering into futures contracts is the possibility that the change in value of the contract may not correlate with the changes in value of the underlying securities. The fund's average notional exposure to these interest rate risk derivative instruments held during the period was $27,950,000 futures contracts sold.
The value of interest rate risk derivative instruments as of August 31, 2018, is disclosed on the Statement of Assets and Liabilities as a liability of $42,422 in payable for variation margin on futures contracts.* For the year ended August 31, 2018, the effect of interest rate risk derivative instruments on the Statement of Operations was $(7,838) in net realized gain (loss) on futures contract transactions and $61,503 in change in net unrealized appreciation (depreciation) on futures contracts.
* Included in the unrealized appreciation (depreciation) on futures contracts as reported in the Schedule of Investments.
8. Risk Factors
The fund focuses its investments in a single state and therefore may have more exposure to credit risk related to the state of California than a fund with a broader geographical diversification. The fund invests in lower-rated debt securities, which are subject to substantial risks including liquidity risk and credit risk.
9. Federal Tax Information
The tax character of distributions paid during the years ended August 31, 2018 and August 31, 2017 were as follows:
2018 | 2017 | |||||
Distributions Paid From | ||||||
Exempt income | $ | 39,394,966 | $ | 36,915,556 | ||
Long-term capital gains | — | — |
The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
34
As of period end, the federal tax cost of investments and the components of distributable earnings on a tax-basis were as follows:
Federal tax cost of investments | $ | 1,167,063,351 | |
Gross tax appreciation of investments | $ | 44,892,199 | |
Gross tax depreciation of investments | (7,923,746 | ) | |
Net tax appreciation (depreciation) of investments | 36,968,453 | ||
Other book-to-tax adjustments | $ | (265,691 | ) |
Undistributed exempt income | — | ||
Accumulated short-term capital losses | $ | (6,203,529 | ) |
Post-October capital loss deferral | $ | (42,930 | ) |
The cost of investments for federal income tax purposes was the same as the cost for financial reporting purposes. The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the realization for tax purposes of unrealized gains (losses) on futures contracts.
Accumulated capital losses represent net capital loss carryovers that may be used to offset future realized capital gains for federal income tax purposes. Future capital loss carryover utilization in any given year may be subject to Internal Revenue Code limitations. Capital loss carryovers expire in 2019.
Loss deferrals represent certain qualified losses that the fund has elected to treat as having been incurred in the following fiscal year for federal income tax purposes.
Loss deferrals represent certain qualified losses that the fund has elected to treat as having been incurred in the following fiscal year for federal income tax purposes.
10. Recently Issued Accounting Standards
In March 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2017-08, “Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities” (ASU 2017-08). ASU 2017-08 amends the amortization period for certain purchased callable debt securities held at a premium, shortening such period to the earliest call date. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Management is currently evaluating the impact that adopting ASU 2017-08 will have on the financial statements.
35
Financial Highlights |
For a Share Outstanding Throughout the Years Ended August 31 (except as noted) | |||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||
Income From Investment Operations: | Ratio to Average Net Assets of: | ||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Distributions From Net Investment Income | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
Investor Class | |||||||||||||
2018 | $10.65 | 0.37 | (0.13) | 0.24 | (0.37) | $10.52 | 2.38% | 0.50% | 3.49% | 52% | $896,098 | ||
2017 | $10.97 | 0.37 | (0.32) | 0.05 | (0.37) | $10.65 | 0.58% | 0.50% | 3.53% | 50% | $844,105 | ||
2016 | $10.30 | 0.37 | 0.67 | 1.04 | (0.37) | $10.97 | 10.27% | 0.50% | 3.47% | 19% | $860,997 | ||
2015 | $10.25 | 0.39 | 0.05 | 0.44 | (0.39) | $10.30 | 4.32% | 0.50% | 3.75% | 41% | $631,702 | ||
2014 | $9.33 | 0.41 | 0.92 | 1.33 | (0.41) | $10.25 | 14.50% | 0.50% | 4.14% | 57% | $571,924 | ||
I Class | |||||||||||||
2018 | $10.64 | 0.39 | (0.12) | 0.27 | (0.39) | $10.52 | 2.58% | 0.30% | 3.69% | 52% | $243,002 | ||
2017 | $10.97 | 0.39 | (0.33) | 0.06 | (0.39) | $10.64 | 0.69% | 0.30% | 3.73% | 50% | $143,717 | ||
2016 | $10.30 | 0.39 | 0.67 | 1.06 | (0.39) | $10.97 | 10.49% | 0.30% | 3.67% | 19% | $137,888 | ||
2015 | $10.25 | 0.41 | 0.05 | 0.46 | (0.41) | $10.30 | 4.53% | 0.30% | 3.95% | 41% | $83,751 | ||
2014 | $9.33 | 0.43 | 0.92 | 1.35 | (0.43) | $10.25 | 14.73% | 0.30% | 4.34% | 57% | $76,561 | ||
Y Class | |||||||||||||
2018 | $10.65 | 0.39 | (0.13) | 0.26 | (0.39) | $10.52 | 2.59% | 0.27% | 3.72% | 52% | $5 | ||
2017(3) | $10.39 | 0.15 | 0.26 | 0.41 | (0.15) | $10.65 | 4.01% | 0.27%(4) | 3.73%(4) | 50%(5) | $5 |
For a Share Outstanding Throughout the Years Ended August 31 (except as noted) | |||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||
Income From Investment Operations: | Ratio to Average Net Assets of: | ||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Distributions From Net Investment Income | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
A Class | |||||||||||||
2018 | $10.65 | 0.34 | (0.13) | 0.21 | (0.34) | $10.52 | 2.12% | 0.75% | 3.24% | 52% | $56,688 | ||
2017 | $10.97 | 0.34 | (0.32) | 0.02 | (0.34) | $10.65 | 0.33% | 0.75% | 3.28% | 50% | $55,457 | ||
2016 | $10.30 | 0.34 | 0.67 | 1.01 | (0.34) | $10.97 | 10.00% | 0.75% | 3.22% | 19% | $135,279 | ||
2015 | $10.25 | 0.36 | 0.05 | 0.41 | (0.36) | $10.30 | 4.06% | 0.75% | 3.50% | 41% | $119,150 | ||
2014 | $9.33 | 0.38 | 0.92 | 1.30 | (0.38) | $10.25 | 14.21% | 0.75% | 3.89% | 57% | $114,878 | ||
C Class | |||||||||||||
2018 | $10.65 | 0.26 | (0.12) | 0.14 | (0.26) | $10.53 | 1.36% | 1.50% | 2.49% | 52% | $23,572 | ||
2017 | $10.97 | 0.27 | (0.32) | (0.05) | (0.27) | $10.65 | (0.42)% | 1.50% | 2.53% | 50% | $28,726 | ||
2016 | $10.30 | 0.26 | 0.67 | 0.93 | (0.26) | $10.97 | 9.18% | 1.50% | 2.47% | 19% | $34,070 | ||
2015 | $10.25 | 0.28 | 0.05 | 0.33 | (0.28) | $10.30 | 3.29% | 1.50% | 2.75% | 41% | $27,917 | ||
2014 | $9.33 | 0.31 | 0.92 | 1.23 | (0.31) | $10.25 | 13.37% | 1.50% | 3.14% | 57% | $23,860 |
Notes to Financial Highlights |
(1) | Computed using average shares outstanding throughout the period. |
(2) | Total returns are calculated based on the net asset value of the last business day and do not reflect applicable sales charges, if any. Total returns for periods less than one year are not annualized. |
(3) | April 10, 2017 (commencement of sale) through August 31, 2017. |
(4) | Annualized. |
(5) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended August 31, 2017. |
See Notes to Financial Statements.
Report of Independent Registered Public Accounting Firm |
To the Board of Trustees of American Century California Tax-Free and Municipal Funds and Shareholders of California High-Yield Municipal Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of California High-Yield Municipal Fund (one of the funds constituting American Century California Tax-Free and Municipal Funds, referred to hereafter as the "Fund") as of August 31, 2018, the related statement of operations for the year ended August 31, 2018, the statement of changes in net assets for each of the two years in the period ended August 31, 2018, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of August 31, 2018, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended August 31, 2018 and the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of August 31, 2018 by correspondence with the custodian and brokers. We believe that our audits provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
Kansas City, Missouri
October 17, 2018
We have served as the auditor of one or more investment companies in American Century Investments since 1997.
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Management |
Board of Trustees
The individuals listed below serve as trustees of the funds. Each trustee will continue to serve in this capacity until death, retirement, resignation or removal from office. The board has adopted a mandatory retirement age for trustees who are not “interested persons,” as that term is defined in the Investment Company Act (independent trustees). Independent trustees shall retire on December 31 of the year in which they reach their 75th birthday; provided, however, that on or after January 1, 2022, independent trustees shall retire on December 31 of the year in which they reach their 76th birthday.
Mr. Thomas is an “interested person” because he currently serves as President and Chief Executive Officer of American Century Companies, Inc. (ACC), the parent company of American Century Investment Management, Inc. (ACIM or the advisor). The other trustees (more than threefourths of the total number) are independent. They are not employees, directors or officers of, and have no financial interest in, ACC or any of its wholly owned, direct or indirect, subsidiaries, including ACIM, American Century Investment Services, Inc. (ACIS) and American Century Services, LLC (ACS), and they do not have any other affiliations, positions or relationships that would cause them to be considered “interested persons” under the Investment Company Act. The trustees serve in this capacity for eight (in the case of Jonathan S. Thomas, 16; and Ronald J. Gilson, 9) registered investment companies in the American Century Investments family of funds.
The following table presents additional information about the trustees. The mailing address for each trustee other than Mr. Thomas is 1665 Charleston Road, Mountain View, California 94043. The mailing address for Mr. Thomas is 4500 Main Street, Kansas City, Missouri 64111.
Name (Year of Birth) | Position(s) Held with Funds | Length of Time Served | Principal Occupation(s) During Past 5 Years | Number of American Century Portfolios Overseen by Trustee | Other Directorships Held During Past 5 Years |
Independent Trustees | |||||
Tanya S. Beder (1955) | Trustee | Since 2011 | Chairman and CEO, SBCC Group Inc. (independent advisory services) (2006 to present) | 45 | CYS Investments, Inc.; Nabors Industries Ltd. |
Jeremy I. Bulow (1954) | Trustee | Since 2011 | Professor of Economics, Stanford University, Graduate School of Business (1979 to present) | 45 | None |
Anne Casscells (1958) | Trustee | Since 2016 | Co-Chief Executive Officer and Chief Investment Officer, Aetos Alternatives Management (investment advisory firm) (2001 to present); Lecturer in Accounting, Stanford University, Graduate School of Business (2009 to present) | 45 | None |
Ronald J. Gilson (1946) | Trustee and Chairman of the Board | Since 1995 (Chairman since 2005) | Charles J. Meyers Professor of Law and Business, Emeritus, Stanford Law School (1979 to 2016); Marc and Eva Stern Professor of Law and Business, Columbia University School of Law (1992 to present) | 50 | None |
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Name (Year of Birth) | Position(s) Held with Funds | Length of Time Served | Principal Occupation(s) During Past 5 Years | Number of American Century Portfolios Overseen by Trustee | Other Directorships Held During Past 5 Years |
Independent Trustees | |||||
Frederick L. A. Grauer (1946) | Trustee | Since 2008 | Senior Advisor, iShares by BlackRock, Inc. (investment management firm) (2010 to 2011, 2013 to 2015); Senior Advisor, Course Hero (an educational technology company) (2015 to present) | 45 | None |
Jonathan D. Levin (1972) | Trustee | Since 2016 | Philip H. Knight Professor and Dean, Graduate School of Business, Stanford University (2016 to present); Professor, Stanford University, (2000 to present); Chair, Department of Economics, Stanford University (2011 to 2014) | 45 | None |
Peter F. Pervere (1947) | Trustee | Since 2007 | Retired | 45 | None |
John B. Shoven (1947) | Trustee | Since 2002 | Charles R. Schwab Professor of Economics, Stanford University (1973 to present) | 45 | Cadence Design Systems; Exponent; Financial Engines |
Interested Trustee | |||||
Jonathan S. Thomas (1963) | Trustee and President | Since 2007 | President and Chief Executive Officer, ACC (2007 to present). Also serves as Chief Executive Officer, ACS; Executive Vice President, ACIM; Director, ACC, ACIM and other ACC subsidiaries | 117 | BioMed Valley Discoveries, Inc. |
The Statement of Additional Information has additional information about the fund's trustees and is available without charge, upon request, by calling 1-800-345-2021.
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Officers
The following table presents certain information about the executive officers of the funds. Each officer serves as an officer for 16 (in the case of Robert J. Leach, 15) investment companies in the American Century family of funds. No officer is compensated for his or her service as an officer of the funds. The listed officers are interested persons of the funds and are appointed or re-appointed on an annual basis. The mailing address for each of the officers listed below is 4500 Main Street, Kansas City, Missouri 64111.
Name (Year of Birth) | Offices with the Funds | Principal Occupation(s) During the Past Five Years |
Jonathan S. Thomas (1963) | Trustee and President since 2007 | President and Chief Executive Officer, ACC (2007 to present). Also serves as Chief Executive Officer, ACS; Executive Vice President, ACIM; Director, ACC, ACIM and other ACC subsidiaries |
R. Wes Campbell (1974) | Chief Financial Officer and Treasurer since 2018 | Investment Operations and Investment Accounting, ACS (2000 to present) |
Amy D. Shelton (1964) | Chief Compliance Officer and Vice President since 2014 | Chief Compliance Officer, American Century funds, (2014 to present); Chief Compliance Officer, ACIM (2014 to present); Chief Compliance Officer, ACIS (2009 to present); Vice President, Client Interactions and Marketing, ACIS (2013 to 2014). Also serves as Vice President, ACIS |
Charles A. Etherington (1957) | General Counsel since 2007 and Senior Vice President since 2006 | Attorney, ACC (1994 to present); Vice President, ACC (2005 to present); General Counsel, ACC (2007 to present). Also serves as General Counsel, ACIM, ACS, ACIS and other ACC subsidiaries; and Senior Vice President, ACIM and ACS |
C. Jean Wade (1964) | Vice President since 2012 | Senior Vice President, ACS (2017 to present); Vice President, ACS (2000 to 2017) |
Robert J. Leach (1966) | Vice President since 2006 | Vice President, ACS (2000 to present) |
David H. Reinmiller (1963) | Vice President since 2000 | Attorney, ACC (1994 to present). Also serves as Vice President, ACIM and ACS |
Ward D. Stauffer (1960) | Secretary since 2005 | Attorney, ACC (2003 to present) |
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Approval of Management Agreement |
At a meeting held on June 19, 2018, the Fund’s Board of Trustees (the "Board") unanimously approved the renewal of the management agreement pursuant to which American Century Investment Management, Inc. (the “Advisor”) acts as the investment advisor for the Fund. Under Section 15(c) of the Investment Company Act, contracts for investment advisory services are required to be reviewed, evaluated, and approved by a majority of a fund’s directors/trustees, including a majority of the independent Trustees, each year. The Board regards this annual evaluation and renewal as one of its most important responsibilities.
The independent Trustees have memorialized a statement regarding the relationship between their ongoing obligations to oversee and evaluate the performance of the Advisor and their annual consideration of renewal of the management agreement. In that statement, the independent Trustees noted that their assessment of the Advisor’s performance is an ongoing process that takes place over the entire year and is informed by all of the extensive information that the Board and its committees receive and consider over time. This information, together with the additional materials provided specifically in connection with the review, are central to the Board’s assessment of the Advisor’s performance and its determination whether to renew the Fund’s management agreement.
Prior to its consideration of the renewal of the management agreement, the Board requested and reviewed extensive data and analysis relating to the proposed renewal. This information and analysis was compiled by the Advisor and certain independent providers of evaluation data concerning the Fund and the services provided to the Fund by the Advisor.
In connection with its consideration of the renewal of the management agreement, the Board’s review and evaluation of the services provided by the Advisor included, but was not limited to, the following:
• | the nature, extent, and quality of investment management, shareholder services, and other services provided to the Fund; |
• | the wide range of other programs and services the Advisor provides to the Fund and its shareholders on a routine and non-routine basis; |
• | the investment performance of the Fund, including data comparing the Fund’s performance to appropriate benchmarks and/or a peer group of other mutual funds with similar investment objectives and strategies; |
• | the cost of owning the Fund compared to the cost of owning similar funds; |
• | the Advisor’s compliance policies, procedures, and regulatory experience; |
• | financial data showing the cost of services provided to the Fund, the profitability of the Fund to the Advisor, and the overall profitability of the Advisor; |
• | strategic plans of the Advisor; |
• | any economies of scale associated with the Advisor’s management of the Fund and other accounts; |
• | services provided and charges to other investment management clients of the Advisor; |
• | acquired fund fees and expenses; |
• | payments and practices in connection with financial intermediaries holding shares of the Fund and the services provided by intermediaries in connection therewith; and |
• | any collateral benefits derived by the Advisor from the management of the Fund. |
In keeping with its practice, the Board held two in-person meetings to review and discuss the information provided in response to their request and held active discussions with the Advisor regarding the renewal of the management agreement. The independent Trustees had the benefit of the advice of their independent counsel throughout the process.
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Factors Considered
The Trustees considered all of the information provided by the Advisor, the independent data providers, and the independent Trustees’ independent counsel in connection with the approval. They determined that the information was sufficient for them to evaluate the management agreement for the Fund. In connection with their review, the Trustees did not identify any single factor as being all-important or controlling and each Trustee may have attributed different levels of importance to different factors. In deciding to renew the management agreement, the Board based its decision on a number of factors, including the following:
Nature, Extent and Quality of Services - Generally. Under the management agreement, the Advisor is responsible for providing or arranging for all services necessary for the operation of the Fund. The Board noted that the Advisor provides or arranges at its own expense a wide variety of services including:
• | constructing and designing the Fund |
• | portfolio research and security selection |
• | initial capitalization/funding |
• | securities trading |
• | Fund administration |
• | custody of Fund assets |
• | daily valuation of the Fund’s portfolio |
• | shareholder servicing and transfer agency, including shareholder confirmations, recordkeeping, and communications |
• | legal services (except the independent Trustees’ counsel) |
• | regulatory and portfolio compliance |
• | financial reporting |
• | marketing and distribution (except amounts paid by the Fund under Rule 12b-1 plans) |
The Board noted that many of these services have expanded over time in terms of both quantity and complexity in response to shareholder demands, competition in the industry, changing distribution channels, and the changing regulatory environment.
Investment Management, Shareholder, and Other Services. The nature of the investment management services provided to the Fund is quite complex and allows Fund shareholders access to professional money management, instant diversification of their investments within an asset class, the opportunity to easily diversify among asset classes by investing in or exchanging among various American Century Investments funds, and liquidity. In evaluating investment performance, the Board expects the Advisor to manage the Fund in accordance with its investment objectives and approved strategies. Further, the Trustees recognize that the Advisor has an obligation to seek the best execution of fund trades. In providing these services, the Advisor utilizes teams of investment professionals (portfolio managers, analysts, research assistants, and securities traders) who require extensive information technology, research, training, compliance, and other systems to conduct their business. The Board, directly and through its Portfolio Committee, regularly reviews investment performance information for the Fund, together with comparative information for appropriate benchmarks and/or peer groups of similarly-managed funds, over different time horizons. The Trustees also review detailed performance information during the management agreement approval process. If performance concerns are identified, the Fund receives special reviews until performance improves, during which the Board discusses with the Advisor the reasons for such results (e.g., market conditions, security selection) and any efforts being undertaken to improve performance. The Fund’s performance was below its benchmark for the one-, three-, five-, and ten-year periods reviewed by the Board. The Board discussed the Fund’s performance with the Advisor and was satisfied with the efforts being undertaken by the Advisor. The Board found the investment management services provided by the Advisor to the Fund to be satisfactory and consistent with the management agreement.
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Under the management agreement, the Advisor provides the Fund with a comprehensive package of transfer agency, shareholder, and other services. The Board, directly and through various committees of the Board, regularly reviews reports and evaluations of such services at its regular meetings. These reports include, but are not limited to, information regarding the operational efficiency and accuracy of the shareholder and transfer agency services provided, staffing levels, shareholder satisfaction (as measured by external as well as internal sources), technology support, new products and services offered to Fund shareholders, securities trading activities, portfolio valuation services, auditing services, and legal and operational compliance activities. The Board found the services provided by the Advisor to the Fund under the management agreement to be competitive and of high quality.
Costs of Services and Profitability. The Advisor provides detailed information concerning its cost of providing various services to the Fund, its profitability in managing the Fund, its overall profitability, and its financial condition. The Trustees have reviewed with the Advisor the methodology used to prepare this financial information. This information is considered in evaluating the Advisor’s financial condition, its ability to continue to provide services under the management agreement, and the reasonableness of the current management fee. The Board concluded that the Advisor’s profits were reasonable in light of the services provided to the Fund.
Economies of Scale. The Board also reviewed information provided by the Advisor regarding the possible existence of economies of scale in connection with the management of the Fund. The Board concluded that economies of scale are difficult to measure and predict with precision, especially on a fund-by-fund basis. The Board concluded that the Advisor is appropriately sharing economies of scale through its competitive fee structure, offering competitive fees from fund inception, and through reinvestment in its business to provide shareholders enhanced and expanded services.
Comparison to Other Funds’ Fees. The management agreement provides that the Fund pays the Advisor a single, all-inclusive (or unified) management fee for providing all services necessary for the management and operation of the Fund, other than brokerage expenses, expenses attributable to short sales, taxes, interest, extraordinary expenses, the fees and expenses of the Fund’s independent Trustees (including their independent legal counsel), and expenses incurred in connection with the provision of shareholder services and distribution services under a plan adopted pursuant to Rule 12b-1 under the 1940 Act. Under the unified fee structure, the Advisor is responsible for providing all investment advisory, custody, audit, administrative, compliance, recordkeeping, marketing, and shareholder services, or arranging and supervising third parties to provide such services. By contrast, most other funds are charged a variety of fees, including an investment advisory fee, a transfer agency fee, an administrative fee, distribution charges, and other expenses. Other than their investment advisory fees and any applicable Rule 12b-1 distribution fees, all other components of the total fees charged by these other funds may be increased without shareholder approval. The Board believes the unified fee structure is a benefit to Fund shareholders because it clearly discloses to shareholders the cost of owning Fund shares, and, since the unified fee cannot be increased without a vote of Fund shareholders, it shifts to the Advisor the risk of increased costs of operating the Fund and provides a direct incentive to minimize administrative inefficiencies. Part of the Board’s analysis of fee levels involves reviewing certain evaluative data compiled by an independent provider and comparing the Fund’s unified fee to the total expense ratio of peer funds. The unified fee charged to shareholders of the Fund was in the lowest quartile of the total expense ratios of the Fund’s peer group. The Board concluded that the management fee paid by the Fund to the Advisor under the management agreement is reasonable in light of the services provided to the Fund.
Comparison to Fees and Services Provided to Other Clients of the Advisor. The Board also requested and received information from the Advisor concerning the nature of the services, fees, costs, and profitability of its advisory services to advisory clients other than the Fund. They observed that these varying types of client accounts require different services and involve different regulatory and entrepreneurial risks than the management of the Fund. The Board analyzed this
44
information and concluded that the fees charged and services provided to the Fund were reasonable by comparison.
Payments to Intermediaries. The Trustees also requested and received a description of payments made to intermediaries by the Fund and the Advisor and services provided by intermediaries. These payments include various payments made by the Fund or the Advisor to different types of intermediaries and recordkeepers for distribution and service activities provided for the Fund. The Trustees reviewed such information and received representations from the Advisor that all such payments by the Fund were made pursuant to the Fund’s Rule 12b-1 Plan and that all such payments by the Advisor were made from the Advisor’s resources and reasonable profits. The Board found such payments to be reasonable in scope and purpose.
Collateral or “Fall-Out” Benefits Derived by the Advisor. The Board considered the existence of collateral benefits the Advisor may receive as a result of its relationship with the Fund. The Board noted that the Advisor’s primary business is managing mutual funds and it generally does not use fund or shareholder information to generate profits in other lines of business, and therefore does not derive any significant collateral benefits from them. The Board noted that the Advisor may receive proprietary research from broker-dealers that execute fund portfolio transactions. The Board also determined that the Advisor is able to provide investment management services to certain clients other than the Fund, at least in part, due to its existing infrastructure built to serve the fund complex. The Board noted that the assets of those other accounts are, where applicable, included with the assets of the Fund to determine breakpoints in the management fee schedule.
Existing Relationship. The Board also considered whether there was any reason for not continuing the existing arrangement with the Advisor. In this regard, the Board was mindful of the potential disruptions of the Fund’s operations and various risks, uncertainties, and other effects that could occur as a result of a decision not to continue such relationship. In particular, the Board recognized that most shareholders have invested in the Fund on the strength of the Advisor’s industry standing and reputation and in the expectation that the Advisor will have a continuing role in providing advisory services to the Fund.
Conclusion of the Trustees. As a result of this process, the Board, including all of the independent Trustees and assisted by the advice of independent legal counsel, taking into account all of the factors discussed above and the information provided by the Advisor and others in connection with its review and throughout the year, concluded that the management agreement between the Fund and the Advisor is fair and reasonable in light of the services provided and should be renewed.
45
Additional Information |
Retirement Account Information
As required by law, distributions you receive from certain retirement accounts are subject to federal income tax withholding, unless you elect not to have withholding apply*. Tax will be withheld on the total amount withdrawn even though you may be receiving amounts that are not subject to withholding, such as nondeductible contributions. In such case, excess amounts of withholding could occur. You may adjust your withholding election so that a greater or lesser amount will be withheld.
If you don’t want us to withhold on this amount, you must notify us to not withhold the federal income tax. You may notify us in writing or in certain situations by telephone or through other electronic means. For systematic withdrawals, your withholding election will remain in effect until revoked or changed by filing a new election. You have the right to revoke your election at any time and change your withholding percentage for future distributions.
Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.
State tax will be withheld if, at the time of your distribution, your address is within one of the mandatory withholding states and you have federal income tax withheld (or as otherwise required by state law). State taxes will be withheld from your distribution in accordance with the respective state rules.
*Some 403(b), 457 and qualified retirement plan distributions may be subject to 20% mandatory withholding, as they are subject to special tax and withholding rules. Your plan administrator or plan sponsor is required to provide you with a special tax notice explaining those rules at the time you request a distribution. If applicable, federal and/or state taxes may be withheld from your distribution amount.
Proxy Voting Policies
Descriptions of the principles and policies that the fund's investment advisor uses in exercising the voting rights associated with the securities purchased and/or held by the fund are available without charge, upon request, by calling 1-800-345-2021 or visiting the "About Us" page of American Century Investments’ website at americancentury.com. A description of the policies is also available on the Securities and Exchange Commission’s website at sec.gov. Information regarding how the investment advisor voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the "About Us" page at americancentury.com. It is also available at sec.gov.
Quarterly Portfolio Disclosure
The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q. The fund’s Forms N-Q are available on the SEC’s website at sec.gov, and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The fund also makes its complete schedule of portfolio holdings for the most recent quarter of its fiscal year available on its website at americancentury.com and, upon request, by calling 1-800-345-2021.
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Other Tax Information
The following information is provided pursuant to provisions of the Internal Revenue Code.
The fund designates $39,312,530 as exempt interest dividends for the fiscal year ended August 31, 2018.
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Contact Us | americancentury.com | |
Automated Information Line | 1-800-345-8765 | |
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | |
Investors Using Advisors | 1-800-378-9878 | |
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | |
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | |
Telecommunications Relay Service for the Deaf | 711 | |
American Century California Tax-Free and Municipal Funds | ||
Investment Advisor: American Century Investment Management, Inc. Kansas City, Missouri | ||
This report and the statements it contains are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. | ||
©2018 American Century Proprietary Holdings, Inc. All rights reserved. CL-ANN-90325 1810 |
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Annual Report | |
August 31, 2018 | |
California Intermediate-Term Tax-Free Bond Fund | |
Investor Class (BCITX) | |
I Class (BCTIX) | |
Y Class (ACYTX) | |
A Class (BCIAX) | |
C Class (BCIYX) |
Table of Contents |
President’s Letter | 2 | |
Performance | 3 | |
Portfolio Commentary | ||
Fund Characteristics | ||
Shareholder Fee Example | ||
Schedule of Investments | ||
Statement of Assets and Liabilities | ||
Statement of Operations | ||
Statement of Changes in Net Assets | ||
Notes to Financial Statements | ||
Financial Highlights | ||
Report of Independent Registered Public Accounting Firm | ||
Management | ||
Approval of Management Agreement | ||
Additional Information |
Any opinions expressed in this report reflect those of the author as of the date of the report, and do not necessarily represent the opinions of American Century Investments® or any other person in the American Century Investments organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century Investments disclaims any responsibility to update such opinions. These opinions may not be relied upon as investment advice and, because investment decisions made by American Century Investments funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century Investments fund. Security examples are used for representational purposes only and are not intended as recommendations to purchase or sell securities. Performance information for comparative indices and securities is provided to American Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.
President’s Letter |
![jthomasrev0514.jpg](https://capedge.com/proxy/N-CSR/0000717316-18-000021/jthomasrev0514.jpg)
Dear Investor:
Thank you for reviewing this annual report for the 12 months ended August 31, 2018. Annual reports help convey important information about fund returns, including market factors that affected performance during the reporting period. For additional, updated investment and market insights, we encourage you to visit our website, americancentury.com.
Tax Reform, Rising Rates Led to Muted Municipal Bond Returns
Fixed-income investors faced a challenging backdrop as the reporting period unfolded. Early on, improving economic data, along with the Federal Reserve’s (Fed’s) efforts to normalize monetary policy, helped push U.S. Treasury yields higher. In addition to these influences, uncertainty regarding federal tax reform also weighed on the municipal bond (muni) market. Debate surrounding certain provisions related to the muni market pressured returns ahead of Congress’s December 2017 vote on the tax-reform bill. However, the final legislation was devoid of many surprises and left intact the tax-exempt status of most munis.
Heightened market volatility resurfaced in early 2018. Positive economic and jobs data and rising inflation expectations helped drive Treasury yields to their highest levels in several years. In response, the Fed assumed a more hawkish tone and upped its rate-hike outlook for 2018. On the political front, President Trump’s administration announced a series of tariffs that fueled fears of a global trade war, which contributed to the broad market unrest.
Volatility eased somewhat by the end of the reporting period. Tariffs and other geopolitical issues sparked a flight to quality, and Treasury yields retreated from their earlier highs. Overall, a slowdown in muni issuance, particularly in the second half of the period, coupled with healthy investor demand for munis aided returns. For the 12-month period, national and California munis advanced slightly and outperformed Treasuries. Returns for high-yield munis were stronger, bolstered by investor demand for yield.
With inflationary pressures mounting, interest rates rising, and the implications of tax reform still unfolding, fixed-income investors will continue to face evolving opportunities and challenges. We believe this scenario warrants a disciplined, diversified, and risk-aware approach, using professionally managed portfolios in pursuit of investment goals. We appreciate your continued trust and confidence in us.
Sincerely,
![image48a01.jpg](https://capedge.com/proxy/N-CSR/0000717316-18-000021/image48a01.jpg)
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
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Performance |
Total Returns as of August 31, 2018 | ||||||
Average Annual Returns | ||||||
Ticker Symbol | 1 year | 5 years | 10 years | Since Inception | Inception Date | |
Investor Class | BCITX | 0.03% | 3.07% | 3.63% | — | 11/9/83 |
S&P Intermediate Term California AMT-Free Municipal Bond Index | — | 0.28% | 3.45% | — | — | — |
Bloomberg Barclays 7 Year Municipal Bond Index | — | -0.79% | 3.10% | 3.97% | — | — |
I Class | BCTIX | 0.23% | 3.28% | — | 3.52% | 3/1/10 |
Y Class | ACYTX | 0.26% | — | — | 2.30% | 4/10/17 |
A Class | BCIAX | 3/1/10 | ||||
No sales charge | -0.22% | 2.81% | — | 3.06% | ||
With sales charge | -4.74% | 1.86% | — | 2.50% | ||
C Class | BCIYX | -0.96% | 2.06% | — | 2.30% | 3/1/10 |
Average annual returns since inception are presented when ten years of performance history is not available.
Effective December 31, 2017, the fund's investment advisor selected a different benchmark for comparison purposes. The advisor believes the S&P Intermediate Term California AMT-Free Municipal Bond Index is more reflective of the fund's strategy. Because the S&P Intermediate Term California AMT-Free Municipal Bond Index total return data is first available as of June 30, 2010, returns for the Bloomberg Barclays 7 Year Municipal Bond Index are also shown to cover the 10 year period.
Sales charges include initial sales charges and contingent deferred sales charges (CDSCs), as applicable. A Class shares have a 4.50% maximum initial sales charge and may be subject to a maximum CDSC of 1.00%. C Class shares redeemed within 12 months of purchase are subject to a maximum CDSC of 1.00%. The SEC requires that mutual funds provide performance information net of maximum sales charges in all cases where charges could be applied.
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Total returns for periods less than one year are not annualized. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. For additional information about the fund, please consult the prospectus.
3
Growth of $10,000 Over 10 Years |
$10,000 investment made August 31, 2008 |
Performance for other share classes will vary due to differences in fee structure. |
![chart-2300cb310c5656fb899.jpg](https://capedge.com/proxy/N-CSR/0000717316-18-000021/chart-2300cb310c5656fb899.jpg)
Value on August 31, 2018 | |
Investor Class — $14,286 | |
Bloomberg Barclays 7 Year Municipal Bond Index — $14,766 | |
Since S&P Intermediate Term California AMT-Free Municipal Bond Index total return data is only available from June 2010, it is not included in the line chart.
Total Annual Fund Operating Expenses | ||||
Investor Class | I Class | Y Class | A Class | C Class |
0.47% | 0.27% | 0.24% | 0.72% | 1.47% |
The total annual fund operating expenses shown is as stated in the fund’s prospectus current as of the date of this report. The prospectus may vary from the expense ratio shown elsewhere in this report because it is based on a different time period, includes acquired fund fees and expenses, and, if applicable, does not include fee waivers or expense reimbursements.
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Total returns for periods less than one year are not annualized. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. For additional information about the fund, please consult the prospectus.
4
Portfolio Commentary |
Portfolio Managers: Joseph Gotelli, Alan Kruss, and Steven Permut
Performance Summary
California Intermediate-Term Tax-Free Bond returned 0.03%* for the 12 months ended August 31, 2018. By comparison, the S&P Intermediate Term California AMT-Free Municipal Bond Index returned 0.28%. Fund returns reflect operating expenses, while index returns do not.
In general, healthy municipal bond (muni) market fundamentals and favorable supply/demand trends helped the broad muni market overcome several challenges during the period. These challenges included market uncertainty ahead of the December 2017 vote on tax-reform legislation, heightened bond market volatility, and rising U.S. Treasury yields. Munis advanced fractionally and generally outperformed U.S. Treasuries and the broad U.S. investment-grade bond market, both of which declined for the period. Within the muni universe, short- and intermediate-maturity munis generally underperformed longer-maturity securities, and revenue bonds generally outperformed general obligation (GO) bonds. Lower-quality munis sharply outperformed their higher-quality counterparts, as investor demand for yield helped drive gains for riskier securities.
Meanwhile, California munis modesty outperformed national munis, largely due to the federal tax-reform legislation passed in December 2017. The legislation caps state and local tax deductions, thereby increasing the marginal value of tax-exempt income to California investors. This led to spread tightening between California munis and national munis.
Broad Fiscal Backdrop Remained Healthy; Credit Fundamentals Were Stable
State and local finances in California and across the U.S. remained relatively healthy, as economic growth and employment trends continued to improve. In addition, a recent U.S. Supreme Court ruling allowing states to collect taxes on online sales is likely to aid state finances. Muni issuance declined slightly from year-ago levels, but demand remained healthy, which helped support muni market gains.
In general, muni credit quality trends in California and nationwide remained stable, despite ongoing high-profile credit challenges for certain issuers, such as Illinois and Puerto Rico. Overall, muni defaults were rare, and muni credit-rating upgrades slightly outpaced downgrades. Mounting legacy costs related to pensions and retiree health care obligations may continue to pressure select isolated credits (such as Illinois, New Jersey, and Connecticut), but we do not believe these issues are indicative of a systemic market-wide problem.
Duration Positioning Weighed on Results
Our duration positioning primarily accounted for the fund’s modest underperformance compared with the index. Specifically, the portfolio’s longer-than-index duration during the first quarter of 2018 (when interest rates took a sharp upward turn) detracted from relative results. We maintained this duration strategy through most of the reporting period to take advantage of reduced muni supply in 2018. Muni issuance had accelerated in late 2017, as issuers rushed to market ahead of the vote on tax-reform legislation. Consequently, muni supply declined in 2018.
On a positive note, security selection was a key contributor to portfolio performance. In particular, our holdings among special tax entities, hospitals, and toll facilities delivered solid results. Our selections in the lease revenue sector detracted slightly.
* All fund returns referenced in this commentary are for Investor Class shares. Performance for other share classes will vary due to differences in fee structure; when Investor Class performance exceeds that of the index, other share classes may not. See page 3 for returns for all share classes.
5
Sector allocation also aided relative results. Specifically, an underweight position relative to the index in pre-refunded securities and overweight positions in charter schools and the tobacco settlement sector lifted results. Overweight positions in the special tax sector and in cash detracted slightly.
In addition, our allocation to lower-rated investment-grade securities contributed to performance. In particular, overweight positions in securities with A and BBB credit ratings boosted relative results.
Portfolio Positioning
We expect muni issuance to remain relatively subdued, largely due to the effects of tax reform. We also expect demand for munis to remain healthy, particularly in high-tax states, such as California, where the elimination and reduction of certain federal tax deductions may increase the attractiveness of munis. However, with market volatility remaining in play, investors likely will remain somewhat cautious. We expect to maintain our duration and yield curve positions, finding little incentive to alter our strategies in the current environment. We will continue to focus on security selection, generally favoring revenue bonds over GO bonds and seeking attractive opportunities among lower-rated investment-grade munis. As always, fundamental credit research will drive our investment decisions.
6
Fund Characteristics |
August 31, 2018 | |
Portfolio at a Glance | |
Weighted Average Life to Maturity | 8.6 years |
Average Duration (Modified) | 4.3 years |
Top Five Sectors | % of fund investments |
Special Tax | 15% |
Hospital | 13% |
Pre-Refunded | 9% |
General Obligation (GO) - Local | 9% |
Water/Sewer | 8% |
Types of Investments in Portfolio | % of net assets |
Municipal Securities | 99.2% |
Other Assets and Liabilities | 0.8% |
7
Shareholder Fee Example |
Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption/exchange fees; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in your fund and to compare these costs with the ongoing cost of investing in other mutual funds.
The example is based on an investment of $1,000 made at the beginning of the period and held for the entire period from March 1, 2018 to August 31, 2018.
Actual Expenses
The table provides information about actual account values and actual expenses for each class. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. First, identify the share class you own. Then simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
If you hold Investor Class shares of any American Century Investments fund, or I Class shares of the American Century Diversified Bond Fund, in an American Century Investments account (i.e., not a financial intermediary or retirement plan account), American Century Investments may charge you a $12.50 semiannual account maintenance fee if the value of those shares is less than $10,000. We will redeem shares automatically in one of your accounts to pay the $12.50 fee. In determining your total eligible investment amount, we will include your investments in all personal accounts (including American Century Investments Brokerage accounts) registered under your Social Security number. Personal accounts include individual accounts, joint accounts, UGMA/UTMA accounts, personal trusts, Coverdell Education Savings Accounts and IRAs (including traditional, Roth, Rollover, SEP-, SARSEP- and SIMPLE-IRAs), and certain other retirement accounts. If you have only business, business retirement, employer-sponsored or American Century Investments Brokerage accounts, you are currently not subject to this fee. If you are subject to the Account Maintenance Fee, your account value could be reduced by the fee amount.
Hypothetical Example for Comparison Purposes
The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund’s share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption/exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
8
Beginning Account Value 3/1/18 | Ending Account Value 8/31/18 | Expenses Paid During Period(1) 3/1/18 - 8/31/18 | Annualized Expense Ratio(1) | |
Actual | ||||
Investor Class | $1,000 | $1,013.90 | $2.39 | 0.47% |
I Class | $1,000 | $1,014.90 | $1.37 | 0.27% |
Y Class | $1,000 | $1,015.00 | $1.22 | 0.24% |
A Class | $1,000 | $1,012.60 | $3.65 | 0.72% |
C Class | $1,000 | $1,008.80 | $7.44 | 1.47% |
Hypothetical | ||||
Investor Class | $1,000 | $1,022.84 | $2.40 | 0.47% |
I Class | $1,000 | $1,023.84 | $1.38 | 0.27% |
Y Class | $1,000 | $1,024.00 | $1.22 | 0.24% |
A Class | $1,000 | $1,021.58 | $3.67 | 0.72% |
C Class | $1,000 | $1,017.80 | $7.48 | 1.47% |
(1) | Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 184, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses. |
9
Schedule of Investments |
AUGUST 31, 2018
Principal Amount | Value | |||||
MUNICIPAL SECURITIES — 99.2% | ||||||
California — 98.8% | ||||||
91 Express Lanes Toll Road Rev., 5.00%, 8/15/24 | $ | 1,000,000 | $ | 1,140,560 | ||
91 Express Lanes Toll Road Rev., 5.00%, 8/15/25 | 1,000,000 | 1,139,040 | ||||
ABAG Finance Authority for Nonprofit Corps. Rev., (Sharp Healthcare Obligated Group), 6.25%, 8/1/19, Prerefunded at 100% of Par(1) | 1,200,000 | 1,252,392 | ||||
ABAG Finance Authority for Nonprofit Corps. Rev., (Sharp Healthcare Obligated Group), 6.00%, 8/1/30 | 3,500,000 | 3,902,640 | ||||
ABAG Finance Authority for Nonprofit Corps. Rev., (Sharp Healthcare Obligated Group), 5.00%, 8/1/33 | 1,450,000 | 1,600,133 | ||||
ABAG Finance Authority for Nonprofit Corps. Special Tax, 5.00%, 9/2/28 (AGM) | 2,630,000 | 3,121,600 | ||||
ABAG Finance Authority for Nonprofit Corps. Special Tax, 5.00%, 9/2/31 (AGM) | 1,400,000 | 1,633,646 | ||||
ABAG Finance Authority for Nonprofit Corps. Special Tax, 5.00%, 9/2/32 (AGM) | 495,000 | 575,482 | ||||
Alameda Corridor Transportation Authority Rev., 5.00%, 10/1/20 | 3,010,000 | 3,218,382 | ||||
Alameda Corridor Transportation Authority Rev., 5.00%, 10/1/22 | 1,000,000 | 1,105,600 | ||||
Alameda Corridor Transportation Authority Rev., 5.00%, 10/1/24 | 2,000,000 | 2,281,780 | ||||
Alameda Corridor Transportation Authority Rev., 5.00%, 10/1/35 | 500,000 | 561,300 | ||||
Alameda Corridor Transportation Authority Rev., 5.00%, 10/1/36 | 6,000,000 | 6,717,540 | ||||
Alameda Corridor Transportation Authority Rev., Capital Appreciation, 0.00%, 10/1/32 (NATL)(2) | 1,000,000 | 592,850 | ||||
Alameda Corridor Transportation Authority Rev., Capital Appreciation, 0.00%, 10/1/35 (NATL)(2) | 12,750,000 | 6,560,767 | ||||
Alum Rock Union Elementary School District GO, 6.00%, 8/1/39 | 2,500,000 | 2,870,400 | ||||
Anaheim Public Financing Authority Rev., 5.25%, 4/1/19, Prerefunded at 100% of Par(1) | 2,500,000 | 2,556,100 | ||||
Anaheim Public Financing Authority Rev., 5.375%, 4/1/21, Prerefunded at 100% of Par(1) | 1,000,000 | 1,096,610 | ||||
Anaheim Public Financing Authority Rev., 5.00%, 10/1/22, Prerefunded at 100% of Par(1) | 1,200,000 | 1,355,148 | ||||
Anaheim Public Financing Authority Rev., 5.00%, 10/1/22, Prerefunded at 100% of Par(1) | 2,275,000 | 2,569,135 | ||||
Anaheim Public Financing Authority Rev., 5.00%, 5/1/25 | 1,000,000 | 1,155,590 | ||||
Anaheim Public Financing Authority Rev., 5.00%, 5/1/28 | 1,100,000 | 1,255,375 | ||||
Anaheim Public Financing Authority Rev., 5.00%, 5/1/29 | 1,250,000 | 1,423,713 | ||||
Anaheim Public Financing Authority Rev., 5.00%, 5/1/34 | 1,360,000 | 1,531,360 | ||||
Anaheim Public Financing Authority Rev., 5.00%, 5/1/39 | 1,550,000 | 1,728,870 | ||||
Anaheim Public Financing Authority Rev., 5.00%, 5/1/46 | 4,200,000 | 4,661,496 | ||||
Atwater Wastewater Rev., 5.00%, 5/1/23 (AGM) | 510,000 | 574,775 | ||||
Atwater Wastewater Rev., 5.00%, 5/1/25 (AGM) | 745,000 | 860,497 | ||||
Atwater Wastewater Rev., 5.00%, 5/1/27 (AGM) | 415,000 | 489,273 | ||||
Atwater Wastewater Rev., 5.00%, 5/1/29 (AGM) | 700,000 | 816,452 | ||||
Atwater Wastewater Rev., 5.00%, 5/1/32 (AGM) | 895,000 | 1,026,118 | ||||
Bay Area Toll Authority Rev., 5.00%, 4/1/23, Prerefunded at 100% of Par(1) | 8,265,000 | 9,444,168 |
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Principal Amount | Value | |||||
Bay Area Toll Authority Rev., 5.00%, 4/1/24 | $ | 1,500,000 | $ | 1,672,500 | ||
Bay Area Toll Authority Rev., 5.00%, 4/1/25 | 3,500,000 | 3,896,060 | ||||
Bay Area Toll Authority Rev., 5.00%, 4/1/28 | 5,000,000 | 6,163,550 | ||||
Bay Area Toll Authority Rev., 5.00%, 4/1/28 | 7,185,000 | 7,966,369 | ||||
Bay Area Toll Authority Rev., 4.00%, 4/1/30 | 10,000,000 | 10,988,700 | ||||
Bay Area Toll Authority Rev., 5.00%, 10/1/54 | 5,000,000 | 5,530,800 | ||||
Bay Area Toll Authority Rev., VRDN, 2.26%, 9/6/18, resets weekly off the MUNIPSA plus 0.70% | 1,550,000 | 1,554,665 | ||||
Bay Area Toll Authority Rev., VRDN, 2.66%, 9/6/18, resets weekly off the MUNIPSA plus 1.10% | 3,750,000 | 3,872,475 | ||||
Bay Area Toll Authority Rev., VRDN, 2.81%, 9/6/18, resets weekly off the MUNIPSA plus 1.25% | 4,000,000 | 4,159,520 | ||||
Bay Area Toll Authority Rev., VRDN, 2.00%, 4/1/21, resets off the remarketing agent | 2,000,000 | 2,007,680 | ||||
Brea Redevelopment Agency Tax Allocation, Capital Appreciation, 0.00%, 8/1/23(3) | 1,500,000 | 1,376,760 | ||||
Brea Redevelopment Agency Tax Allocation, Capital Appreciation, 0.00%, 8/1/23(3) | 1,785,000 | 1,632,811 | ||||
California County Tobacco Securitization Agency Rev., (Los Angeles County Securitization Corp.), 5.45%, 6/1/28 | 4,000,000 | 4,025,440 | ||||
California Educational Facilities Authority Rev., 5.00%, 10/1/21(1) | 365,000 | 400,901 | ||||
California Educational Facilities Authority Rev., 5.00%, 10/1/21 | 385,000 | 421,898 | ||||
California Educational Facilities Authority Rev., (Chapman University), 5.00%, 4/1/21 | 750,000 | 811,433 | ||||
California Educational Facilities Authority Rev., (Chapman University), 5.00%, 4/1/24 | 930,000 | 1,071,639 | ||||
California Educational Facilities Authority Rev., (Chapman University), 5.00%, 4/1/31 (GA: Brandman University) | 1,455,000 | 1,560,473 | ||||
California Educational Facilities Authority Rev., (Claremont Mckenna College), 5.00%, 1/1/32 | 750,000 | 871,995 | ||||
California Educational Facilities Authority Rev., (Harvey Mudd College), 5.25%, 12/1/41 | 2,000,000 | 2,189,620 | ||||
California Educational Facilities Authority Rev., (Loma Linda University), 5.00%, 4/1/25 | 800,000 | 926,808 | ||||
California Educational Facilities Authority Rev., (Loma Linda University), 5.00%, 4/1/27 | 300,000 | 354,243 | ||||
California Educational Facilities Authority Rev., (Loma Linda University), 5.00%, 4/1/28 | 800,000 | 939,280 | ||||
California Educational Facilities Authority Rev., (Loyola Marymount University), 5.00%, 10/1/30 | 1,365,000 | 1,411,451 | ||||
California Educational Facilities Authority Rev., (University of Redlands), 5.00%, 10/1/27 | 275,000 | 321,329 | ||||
California Educational Facilities Authority Rev., (University of Redlands), 5.00%, 10/1/28 | 250,000 | 290,435 | ||||
California Educational Facilities Authority Rev., (University of Redlands), 3.00%, 10/1/29 | 360,000 | 356,310 | ||||
California Educational Facilities Authority Rev., (University of Redlands), 3.00%, 10/1/30 | 365,000 | 356,298 | ||||
California Educational Facilities Authority Rev., (University of Redlands), 3.125%, 10/1/31 | 295,000 | 289,548 | ||||
California Educational Facilities Authority Rev., (University of Redlands), 5.00%, 10/1/32 | 600,000 | 685,098 | ||||
California Educational Facilities Authority Rev., (University of Redlands), 3.25%, 10/1/33 | 355,000 | 345,479 | ||||
California Educational Facilities Authority Rev., (University of Southern California), 5.00%, 10/1/18, Prerefunded at 100% of Par(1) | 2,950,000 | 2,957,847 |
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Principal Amount | Value | |||||
California Educational Facilities Authority Rev., (University of Southern California), 5.00%, 10/1/25 | $ | 1,875,000 | $ | 2,251,050 | ||
California Educational Facilities Authority Rev., (University of the Pacific), 5.00%, 11/1/33 | 1,500,000 | 1,713,630 | ||||
California Health Facilities Financing Authority Rev., (Cedars-Sinai Medical Center), 5.00%, 11/15/22 | 3,000,000 | 3,378,330 | ||||
California Health Facilities Financing Authority Rev., (Cedars-Sinai Medical Center), 5.00%, 11/15/23 | 2,150,000 | 2,472,392 | ||||
California Health Facilities Financing Authority Rev., (Cedars-Sinai Medical Center), 5.00%, 11/15/24 | 1,450,000 | 1,697,602 | ||||
California Health Facilities Financing Authority Rev., (Cedars-Sinai Medical Center), 5.00%, 11/15/26 | 3,000,000 | 3,545,070 | ||||
California Health Facilities Financing Authority Rev., (Cedars-Sinai Medical Center), 5.00%, 11/15/27 | 6,000,000 | 7,081,440 | ||||
California Health Facilities Financing Authority Rev., (Cedars-Sinai Medical Center), 5.00%, 11/15/31 | 2,700,000 | 3,149,577 | ||||
California Health Facilities Financing Authority Rev., (Cedars-Sinai Medical Center), 5.00%, 11/15/32 | 400,000 | 465,744 | ||||
California Health Facilities Financing Authority Rev., (Children's Hospital of Orange County), 6.25%, 11/1/29 (GA: Children's Healthcare of California) | 5,000,000 | 5,275,100 | ||||
California Health Facilities Financing Authority Rev., (Dignity Health Obligated Group), 6.00%, 7/1/19, Prerefunded at 100% of Par(1) | 3,400,000 | 3,525,630 | ||||
California Health Facilities Financing Authority Rev., (El Camino Hospital), 5.00%, 2/1/24 | 1,200,000 | 1,380,240 | ||||
California Health Facilities Financing Authority Rev., (El Camino Hospital), 5.00%, 2/1/25 | 500,000 | 584,510 | ||||
California Health Facilities Financing Authority Rev., (Lucile Salter Packard Children's Hospital at Stanford Obligated Group), 5.00%, 8/15/25 | 5,855,000 | 6,482,773 | ||||
California Health Facilities Financing Authority Rev., (Northern California Retired Officers Community), 5.70%, 12/1/18, Prerefunded at 100% of Par (Ambac California Mortgage Insurance)(1) | 1,455,000 | 1,469,928 | ||||
California Health Facilities Financing Authority Rev., (Providence St. Joseph Health Obligated Group), 6.50%, 10/1/18, Prerefunded at 100% of Par(1) | 1,000,000 | 1,003,730 | ||||
California Health Facilities Financing Authority Rev., (Providence St. Joseph Health Obligated Group), 5.50%, 7/1/29 | 1,500,000 | 1,550,700 | ||||
California Health Facilities Financing Authority Rev., (Providence St. Joseph Health Obligated Group), 5.00%, 7/1/37 | 1,070,000 | 1,189,744 | ||||
California Health Facilities Financing Authority Rev., (Providence St. Joseph Health Obligated Group), 5.75%, 7/1/39 | 2,000,000 | 2,068,140 | ||||
California Health Facilities Financing Authority Rev., (Providence St. Joseph Health Obligated Group), VRDN, 5.00%, 10/18/22, resets off the remarketing agent | 2,200,000 | 2,456,916 | ||||
California Health Facilities Financing Authority Rev., (Providence St. Joseph Health Obligated Group), VRDN, 2.00%, 10/1/25, resets off the remarketing agent | 3,500,000 | 3,367,315 | ||||
California Health Facilities Financing Authority Rev., (Stanford Health Care Obligated Group), 5.00%, 11/15/20, Prerefunded at 100% of Par(1) | 2,000,000 | 2,151,420 | ||||
California Health Facilities Financing Authority Rev., (Stanford Health Care Obligated Group), 5.00%, 11/15/22 | 1,000,000 | 1,129,990 | ||||
California Health Facilities Financing Authority Rev., (Stanford Health Care Obligated Group), 5.00%, 11/15/25 | 2,500,000 | 2,970,675 | ||||
California Health Facilities Financing Authority Rev., (Sutter Health Obligated Group), 6.00%, 8/15/20, Prerefunded at 100% of Par(1) | 2,500,000 | 2,715,775 |
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Principal Amount | Value | |||||
California Health Facilities Financing Authority Rev., (Sutter Health Obligated Group), 5.00%, 8/15/22 | $ | 1,650,000 | $ | 1,806,717 | ||
California Health Facilities Financing Authority Rev., (Sutter Health Obligated Group), 5.25%, 8/15/22 | 3,335,000 | 3,367,249 | ||||
California Health Facilities Financing Authority Rev., (Sutter Health Obligated Group), 5.00%, 11/15/22 | 2,250,000 | 2,534,715 | ||||
California Health Facilities Financing Authority Rev., (Sutter Health Obligated Group), 5.00%, 11/15/24 | 2,885,000 | 3,373,979 | ||||
California Health Facilities Financing Authority Rev., (Sutter Health Obligated Group), 5.00%, 11/15/26 | 1,500,000 | 1,802,100 | ||||
California Health Facilities Financing Authority Rev., (Sutter Health Obligated Group), 5.00%, 11/15/29 | 2,000,000 | 2,320,140 | ||||
California Health Facilities Financing Authority Rev., (Sutter Health Obligated Group), 5.00%, 11/15/30 | 1,750,000 | 2,021,425 | ||||
California Health Facilities Financing Authority Rev., (Sutter Health Obligated Group), 5.00%, 11/15/31 | 1,500,000 | 1,726,275 | ||||
California Health Facilities Financing Authority Rev., (Sutter Health Obligated Group), 5.00%, 11/15/32 | 2,000,000 | 2,350,880 | ||||
California Infrastructure & Economic Development Bank Rev., (Academy of Motion Picture Arts and Sciences Obligated Group), 5.00%, 11/1/27 | 1,010,000 | 1,153,450 | ||||
California Infrastructure & Economic Development Bank Rev., (Academy of Motion Picture Arts and Sciences Obligated Group), 5.00%, 11/1/28 | 1,205,000 | 1,372,350 | ||||
California Infrastructure & Economic Development Bank Rev., (Academy of Motion Picture Arts and Sciences Obligated Group), 5.00%, 11/1/29 | 1,000,000 | 1,135,740 | ||||
California Infrastructure & Economic Development Bank Rev., (Academy of Motion Picture Arts and Sciences Obligated Group), 5.00%, 11/1/30 | 1,370,000 | 1,550,963 | ||||
California Infrastructure & Economic Development Bank Rev., (California Academy of Sciences), VRDN, 1.83%, 9/6/18, resets weekly off 70% of the 1-month LIBOR plus 0.38% | 9,000,000 | 8,991,180 | ||||
California Infrastructure & Economic Development Bank Rev., (California Science Center Foundation), 5.00%, 5/1/28 | 800,000 | 932,584 | ||||
California Infrastructure & Economic Development Bank Rev., (California Science Center Foundation), 5.00%, 5/1/29 | 1,250,000 | 1,446,262 | ||||
California Infrastructure & Economic Development Bank Rev., (California Science Center Foundation), 5.00%, 5/1/30 | 1,000,000 | 1,153,860 | ||||
California Infrastructure & Economic Development Bank Rev., (California Science Center Foundation), 5.00%, 5/1/31 | 800,000 | 919,328 | ||||
California Infrastructure & Economic Development Bank Rev., (Colburn School), VRDN, 2.56%, 9/6/18, resets weekly off the MUNIPSA plus 1.00% | 5,310,000 | 5,354,763 | ||||
California Infrastructure & Economic Development Bank Rev., (J. Paul Getty Trust), VRDN, 1.66%, 9/4/18, resets monthly off 70% of the 1-month LIBOR plus 0.20% | 7,500,000 | 7,504,575 | ||||
California Infrastructure & Economic Development Bank Rev., (J. Paul Getty Trust), VRDN, 2.01%, 9/4/18, resets monthly off 70% of the 3-month LIBOR plus 0.37% | 3,000,000 | 3,011,820 | ||||
California Infrastructure & Economic Development Bank Rev., (Museum Associates), VRDN, 2.10%, 9/6/18, resets weekly off 70% of the 1-month LIBOR plus 0.65% | 5,000,000 | 5,019,850 | ||||
California Infrastructure & Economic Development Bank Rev., (Pacific Gas & Electric Co.), VRDN, 1.50%, 9/4/18, resets daily off the remarketing agent (LOC: Union Bank N.A.) | 1,010,000 | 1,010,000 | ||||
California Infrastructure & Economic Development Bank Rev., (Segerstrom Center for the Arts), 5.00%, 1/1/25 | 3,500,000 | 4,024,090 | ||||
California Municipal Finance Authority Rev., 5.00%, 6/1/37 | 2,990,000 | 3,466,516 |
13
Principal Amount | Value | |||||
California Municipal Finance Authority Rev., (Azusa Pacific University), 8.00%, 4/1/21, Prerefunded at 100% of Par(1) | $ | 665,000 | $ | 767,982 | ||
California Municipal Finance Authority Rev., (Azusa Pacific University), 5.00%, 4/1/27 | 1,165,000 | 1,312,640 | ||||
California Municipal Finance Authority Rev., (Azusa Pacific University), 5.00%, 4/1/41 | 500,000 | 544,600 | ||||
California Municipal Finance Authority Rev., (Biola University, Inc.), 5.00%, 10/1/18 | 250,000 | 250,618 | ||||
California Municipal Finance Authority Rev., (Biola University, Inc.), 5.00%, 10/1/23 | 815,000 | 923,941 | ||||
California Municipal Finance Authority Rev., (Biola University, Inc.), 5.00%, 10/1/27 | 500,000 | 591,095 | ||||
California Municipal Finance Authority Rev., (Biola University, Inc.), 5.00%, 10/1/28 | 1,040,000 | 1,221,251 | ||||
California Municipal Finance Authority Rev., (Biola University, Inc.), 5.00%, 10/1/39 | 750,000 | 847,988 | ||||
California Municipal Finance Authority Rev., (California Baptist University), 5.00%, 11/1/36(4) | 1,000,000 | 1,104,830 | ||||
California Municipal Finance Authority Rev., (California Lutheran University), 5.00%, 10/1/22 | 250,000 | 277,840 | ||||
California Municipal Finance Authority Rev., (California Lutheran University), 5.00%, 10/1/23 | 225,000 | 254,385 | ||||
California Municipal Finance Authority Rev., (California Lutheran University), 5.00%, 10/1/24 | 275,000 | 314,336 | ||||
California Municipal Finance Authority Rev., (California Lutheran University), 5.00%, 10/1/25 | 275,000 | 317,573 | ||||
California Municipal Finance Authority Rev., (California Lutheran University), 5.00%, 10/1/26 | 300,000 | 348,795 | ||||
California Municipal Finance Authority Rev., (California Lutheran University), 5.00%, 10/1/27 | 300,000 | 351,762 | ||||
California Municipal Finance Authority Rev., (California Lutheran University), 5.00%, 10/1/28 | 150,000 | 177,341 | ||||
California Municipal Finance Authority Rev., (California Lutheran University), 5.00%, 10/1/29 | 225,000 | 264,078 | ||||
California Municipal Finance Authority Rev., (California Lutheran University), 5.00%, 10/1/30 | 225,000 | 262,798 | ||||
California Municipal Finance Authority Rev., (California Lutheran University), 5.00%, 10/1/31 | 200,000 | 232,656 | ||||
California Municipal Finance Authority Rev., (California Lutheran University), 5.00%, 10/1/32 | 225,000 | 261,104 | ||||
California Municipal Finance Authority Rev., (California Lutheran University), 5.00%, 10/1/33 | 225,000 | 260,471 | ||||
California Municipal Finance Authority Rev., (California Lutheran University), 5.00%, 10/1/34 | 250,000 | 288,945 | ||||
California Municipal Finance Authority Rev., (California Lutheran University), 5.00%, 10/1/35 | 225,000 | 259,214 | ||||
California Municipal Finance Authority Rev., (California Lutheran University), 5.00%, 10/1/36 | 250,000 | 287,088 | ||||
California Municipal Finance Authority Rev., (California Lutheran University), 5.00%, 10/1/37 | 275,000 | 314,779 | ||||
California Municipal Finance Authority Rev., (California Lutheran University), 5.00%, 10/1/38 | 300,000 | 342,567 | ||||
California Municipal Finance Authority Rev., (Channing House), 5.00%, 5/15/35 (California Mortgage Insurance) | 1,000,000 | 1,151,190 | ||||
California Municipal Finance Authority Rev., (Community Hospitals of Central California Obligated Group), 5.00%, 2/1/22 | 1,000,000 | 1,091,370 | ||||
California Municipal Finance Authority Rev., (Community Hospitals of Central California Obligated Group), 5.00%, 2/1/23 | 520,000 | 578,495 |
14
Principal Amount | Value | |||||
California Municipal Finance Authority Rev., (Community Hospitals of Central California Obligated Group), 5.00%, 2/1/25 | $ | 1,925,000 | $ | 2,205,723 | ||
California Municipal Finance Authority Rev., (Community Hospitals of Central California Obligated Group), 5.00%, 2/1/26 | 1,000,000 | 1,158,510 | ||||
California Municipal Finance Authority Rev., (Community Hospitals of Central California Obligated Group), 5.00%, 2/1/27 | 545,000 | 617,583 | ||||
California Municipal Finance Authority Rev., (Community Hospitals of Central California Obligated Group), 5.00%, 2/1/28 | 735,000 | 830,116 | ||||
California Municipal Finance Authority Rev., (Community Hospitals of Central California Obligated Group), 5.00%, 2/1/28 | 1,075,000 | 1,247,516 | ||||
California Municipal Finance Authority Rev., (Community Hospitals of Central California Obligated Group), 5.00%, 2/1/29 | 1,000,000 | 1,123,800 | ||||
California Municipal Finance Authority Rev., (Community Hospitals of Central California Obligated Group), 5.00%, 2/1/29 | 4,130,000 | 4,766,061 | ||||
California Municipal Finance Authority Rev., (Community Hospitals of Central California Obligated Group), 5.00%, 2/1/30 | 1,000,000 | 1,147,590 | ||||
California Municipal Finance Authority Rev., (Community Hospitals of Central California Obligated Group), 5.00%, 2/1/33 | 3,940,000 | 4,455,864 | ||||
California Municipal Finance Authority Rev., (Community Hospitals of Central California Obligated Group), 5.00%, 2/1/40 | 1,420,000 | 1,552,316 | ||||
California Municipal Finance Authority Rev., (Community Hospitals of Central California Obligated Group), 5.00%, 2/1/46 | 5,000,000 | 5,456,850 | ||||
California Municipal Finance Authority Rev., (Eisenhower Medical Center), 5.00%, 7/1/19(1) | 605,000 | 622,430 | ||||
California Municipal Finance Authority Rev., (Eisenhower Medical Center), 5.25%, 7/1/20, Prerefunded at 100% of Par(1) | 1,760,000 | 1,874,541 | ||||
California Municipal Finance Authority Rev., (Eisenhower Medical Center), 5.00%, 7/1/24 | 2,045,000 | 2,302,629 | ||||
California Municipal Finance Authority Rev., (Eisenhower Medical Center), 5.00%, 7/1/26 | 1,600,000 | 1,825,168 | ||||
California Municipal Finance Authority Rev., (Eisenhower Medical Center), 5.00%, 7/1/29 | 2,100,000 | 2,383,269 | ||||
California Municipal Finance Authority Rev., (Eisenhower Medical Center), 5.00%, 7/1/30 | 1,000,000 | 1,129,970 | ||||
California Municipal Finance Authority Rev., (Eisenhower Medical Center), 5.00%, 7/1/31 | 1,000,000 | 1,125,080 | ||||
California Municipal Finance Authority Rev., (Eisenhower Medical Center), 5.00%, 7/1/31 | 1,335,000 | 1,501,982 | ||||
California Municipal Finance Authority Rev., (Eisenhower Medical Center), 5.00%, 7/1/34 | 1,500,000 | 1,671,855 | ||||
California Municipal Finance Authority Rev., (Emerson College), 5.75%, 1/1/22, Prerefunded at 100% of Par(1) | 2,250,000 | 2,540,745 | ||||
California Municipal Finance Authority Rev., (Emerson College), 6.00%, 1/1/22, Prerefunded at 100% of Par(1) | 3,000,000 | 3,411,750 | ||||
California Municipal Finance Authority Rev., (Emerson College), 5.00%, 1/1/29 | 1,350,000 | 1,572,871 | ||||
California Municipal Finance Authority Rev., (Emerson College), 5.00%, 1/1/31 | 1,480,000 | 1,707,387 | ||||
California Municipal Finance Authority Rev., (Emerson College), 5.00%, 1/1/33 | 1,040,000 | 1,191,622 | ||||
California Municipal Finance Authority Rev., (Emerson College), 5.00%, 1/1/34 | 1,000,000 | 1,143,190 | ||||
California Municipal Finance Authority Rev., (Emerson College), 5.00%, 1/1/35 | 1,065,000 | 1,213,812 | ||||
California Municipal Finance Authority Rev., (Emerson College), 5.00%, 1/1/36 | 720,000 | 818,122 | ||||
California Municipal Finance Authority Rev., (Emerson College), 5.00%, 1/1/37 | 1,000,000 | 1,132,850 |
15
Principal Amount | Value | |||||
California Municipal Finance Authority Rev., (Northbay Healthcare Group Obligated Group), 3.00%, 11/1/20 | $ | 1,000,000 | $ | 1,011,250 | ||
California Municipal Finance Authority Rev., (Northbay Healthcare Group Obligated Group), 3.00%, 11/1/21 | 1,680,000 | 1,699,690 | ||||
California Municipal Finance Authority Rev., (Northbay Healthcare Group Obligated Group), 4.00%, 11/1/22 | 1,000,000 | 1,049,140 | ||||
California Municipal Finance Authority Rev., (Northbay Healthcare Group Obligated Group), 5.25%, 11/1/36 | 1,500,000 | 1,649,025 | ||||
California Municipal Finance Authority Rev., (Touro College and University System Obligated Group), 5.25%, 1/1/34 | 300,000 | 328,746 | ||||
California Municipal Finance Authority Rev., (Touro College and University System Obligated Group), 5.25%, 1/1/40 | 1,000,000 | 1,088,660 | ||||
California Municipal Finance Authority Rev., (University of La Verne), 6.25%, 6/1/20, Prerefunded at 100% of Par(1) | 1,000,000 | 1,080,480 | ||||
California Municipal Finance Authority Rev., (University of La Verne), 5.00%, 6/1/25 | 700,000 | 811,181 | ||||
California Municipal Finance Authority Rev., (University of La Verne), 5.00%, 6/1/26 | 1,000,000 | 1,167,220 | ||||
California Municipal Finance Authority Rev., (University of La Verne), 5.00%, 6/1/28 | 1,000,000 | 1,174,530 | ||||
California Municipal Finance Authority Rev., VRDN, 1.91%, 9/6/18, resets weekly off the MUNIPSA plus 0.35% | 3,500,000 | 3,504,340 | ||||
California Public Finance Authority Rev., (Henry Mayo Newhall Memorial Hospital), 5.00%, 10/15/33 | 500,000 | 550,690 | ||||
California Public Finance Authority Rev., (Henry Mayo Newhall Memorial Hospital), 5.00%, 10/15/37 | 1,000,000 | 1,091,070 | ||||
California School Finance Authority Rev., (Alliance for College Ready Public Schools Obligated Group), 3.00%, 7/1/19(4) | 1,025,000 | 1,031,878 | ||||
California School Finance Authority Rev., (Alliance for College Ready Public Schools Obligated Group), 3.00%, 7/1/20(4) | 1,115,000 | 1,129,027 | ||||
California School Finance Authority Rev., (Alliance for College Ready Public Schools Obligated Group), 5.00%, 7/1/46 | 7,000,000 | 7,519,470 | ||||
California School Finance Authority Rev., (Aspire Public Schools Obligated Group), 5.00%, 8/1/46(4) | 1,250,000 | 1,334,050 | ||||
California School Finance Authority Rev., (Rocketship Education Obligated Group), 5.00%, 6/1/26(4) | 500,000 | 535,960 | ||||
California School Finance Authority Rev., (Rocketship Education Obligated Group), 4.50%, 6/1/27(4) | 380,000 | 395,857 | ||||
California School Finance Authority Rev., (Rocketship Education Obligated Group), 5.00%, 6/1/34(4) | 670,000 | 703,239 | ||||
California School Finance Authority Rev., (Rocketship Education Obligated Group), 5.125%, 6/1/47(4) | 635,000 | 661,918 | ||||
California State Public Works Board Rev., 6.00%, 4/1/19, Prerefunded at 100% of Par(1) | 2,130,000 | 2,186,871 | ||||
California State Public Works Board Rev., 6.25%, 4/1/19, Prerefunded at 100% of Par(1) | 2,435,000 | 2,503,472 | ||||
California State Public Works Board Rev., 5.75%, 10/1/19, Prerefunded at 100% of Par(1) | 2,000,000 | 2,092,460 | ||||
California State Public Works Board Rev., 6.375%, 11/1/19, Prerefunded at 100% of Par(1) | 2,500,000 | 2,642,025 | ||||
California State Public Works Board Rev., 5.00%, 4/1/21 | 3,000,000 | 3,255,210 | ||||
California State Public Works Board Rev., 5.00%, 9/1/22, Prerefunded at 100% of Par(1) | 1,000,000 | 1,126,750 | ||||
California State Public Works Board Rev., 5.00%, 4/1/23 | 2,000,000 | 2,221,900 | ||||
California State Public Works Board Rev., 5.00%, 9/1/23, Prerefunded at 100% of Par(1) | 1,865,000 | 2,149,506 | ||||
California State Public Works Board Rev., 5.00%, 4/1/25 | 1,800,000 | 1,995,750 |
16
Principal Amount | Value | |||||
California State Public Works Board Rev., 5.00%, 9/1/25 | $ | 5,000,000 | $ | 5,815,050 | ||
California State Public Works Board Rev., 5.25%, 12/1/26 | 3,000,000 | 3,330,150 | ||||
California State Public Works Board Rev., 5.00%, 5/1/27 | 5,000,000 | 5,842,000 | ||||
California State Public Works Board Rev., 5.75%, 11/1/29 | 1,685,000 | 1,764,111 | ||||
California State University Rev., 5.00%, 11/1/18 | 1,800,000 | 1,810,188 | ||||
California State University Rev., 5.00%, 11/1/19 | 1,000,000 | 1,040,520 | ||||
California State University Rev., 5.00%, 11/1/20 | 1,250,000 | 1,344,650 | ||||
California State University Rev., 5.00%, 11/1/21 | 1,000,000 | 1,106,150 | ||||
California State University Rev., 5.00%, 11/1/24 | 5,000,000 | 5,495,050 | ||||
California State University Rev., 5.00%, 11/1/28 | 2,000,000 | 2,421,560 | ||||
California State University Rev., 5.00%, 11/1/29 | 1,000,000 | 1,202,950 | ||||
California State University Rev., 5.00%, 11/1/30 | 3,000,000 | 3,580,380 | ||||
California State University Rev., 5.00%, 11/1/31 | 2,900,000 | 3,443,663 | ||||
California State University Rev., 5.00%, 11/1/32 | 1,750,000 | 2,013,200 | ||||
California State University Rev., VRDN, 4.00%, 11/1/23, resets off the remarketing agent | 4,000,000 | 4,331,600 | ||||
California Statewide Communities Development Authority COP, (Salinas), 5.00%, 12/1/31 (AGM) | 1,155,000 | 1,376,390 | ||||
California Statewide Communities Development Authority COP, (Salinas), 5.00%, 12/1/34 (AGM) | 1,340,000 | 1,578,587 | ||||
California Statewide Communities Development Authority COP, (Salinas), 5.00%, 12/1/38 (AGM) | 1,000,000 | 1,161,740 | ||||
California Statewide Communities Development Authority Rev., 5.20%, 10/1/18, Prerefunded at 100% of Par (AGM)(1) | 155,000 | 155,420 | ||||
California Statewide Communities Development Authority Rev., (Adventist Health System/West Obligated Group), 5.00%, 3/1/23 | 1,190,000 | 1,345,819 | ||||
California Statewide Communities Development Authority Rev., (Adventist Health System/West Obligated Group), 5.00%, 3/1/24 | 800,000 | 921,472 | ||||
California Statewide Communities Development Authority Rev., (Adventist Health System/West Obligated Group), 5.00%, 3/1/25 | 750,000 | 877,328 | ||||
California Statewide Communities Development Authority Rev., (Adventist Health System/West Obligated Group), 5.00%, 3/1/26 | 1,000,000 | 1,184,010 | ||||
California Statewide Communities Development Authority Rev., (Adventist Health System/West Obligated Group), 5.00%, 3/1/27 | 1,590,000 | 1,868,250 | ||||
California Statewide Communities Development Authority Rev., (Adventist Health System/West Obligated Group), 5.00%, 3/1/31(5) | 740,000 | 870,706 | ||||
California Statewide Communities Development Authority Rev., (Adventist Health System/West Obligated Group), 5.00%, 3/1/32(5) | 900,000 | 1,054,098 | ||||
California Statewide Communities Development Authority Rev., (Adventist Health System/West Obligated Group), 5.00%, 3/1/33(5) | 1,250,000 | 1,458,412 | ||||
California Statewide Communities Development Authority Rev., (Adventist Health System/West Obligated Group), 5.00%, 3/1/34(5) | 1,000,000 | 1,161,370 | ||||
California Statewide Communities Development Authority Rev., (Adventist Health System/West Obligated Group), 5.00%, 3/1/35(5) | 1,475,000 | 1,707,784 | ||||
California Statewide Communities Development Authority Rev., (Adventist Health System/West Obligated Group), 5.00%, 3/1/35 | 715,000 | 810,789 | ||||
California Statewide Communities Development Authority Rev., (American Baptist Homes of the West Obligated Group), 5.00%, 10/1/22 | 1,065,000 | 1,170,488 | ||||
California Statewide Communities Development Authority Rev., (CHF-Irvine LLC), 5.00%, 5/15/21 | 1,225,000 | 1,321,898 | ||||
California Statewide Communities Development Authority Rev., (CHF-Irvine LLC), 5.00%, 5/15/22 | 2,000,000 | 2,202,080 | ||||
California Statewide Communities Development Authority Rev., (CHF-Irvine LLC), 5.00%, 5/15/23 | 1,000,000 | 1,121,360 |
17
Principal Amount | Value | |||||
California Statewide Communities Development Authority Rev., (CHF-Irvine LLC), 5.00%, 5/15/24 | $ | 1,000,000 | $ | 1,135,300 | ||
California Statewide Communities Development Authority Rev., (CHF-Irvine LLC), 5.00%, 5/15/25 | 1,925,000 | 2,210,939 | ||||
California Statewide Communities Development Authority Rev., (CHF-Irvine LLC), 5.00%, 5/15/28 | 2,050,000 | 2,358,627 | ||||
California Statewide Communities Development Authority Rev., (CHF-Irvine LLC), 5.00%, 5/15/29 | 1,250,000 | 1,430,738 | ||||
California Statewide Communities Development Authority Rev., (CHF-Irvine LLC), 5.00%, 5/15/30 | 1,940,000 | 2,210,455 | ||||
California Statewide Communities Development Authority Rev., (CHF-Irvine LLC), 5.00%, 5/15/40 | 1,200,000 | 1,334,988 | ||||
California Statewide Communities Development Authority Rev., (Collis P and Howard Huntington Memorial Hospital Obligated Group), 5.00%, 7/1/21 | 1,000,000 | 1,084,190 | ||||
California Statewide Communities Development Authority Rev., (Collis P and Howard Huntington Memorial Hospital Obligated Group), 5.00%, 7/1/22 | 475,000 | 525,697 | ||||
California Statewide Communities Development Authority Rev., (Collis P and Howard Huntington Memorial Hospital Obligated Group), 5.00%, 7/1/22 | 300,000 | 332,019 | ||||
California Statewide Communities Development Authority Rev., (Collis P and Howard Huntington Memorial Hospital Obligated Group), 5.00%, 7/1/23 | 600,000 | 675,864 | ||||
California Statewide Communities Development Authority Rev., (Collis P and Howard Huntington Memorial Hospital Obligated Group), 5.00%, 7/1/23 | 300,000 | 337,932 | ||||
California Statewide Communities Development Authority Rev., (Collis P and Howard Huntington Memorial Hospital Obligated Group), 5.00%, 7/1/24 | 750,000 | 856,223 | ||||
California Statewide Communities Development Authority Rev., (Collis P and Howard Huntington Memorial Hospital Obligated Group), 5.00%, 7/1/25 | 800,000 | 910,968 | ||||
California Statewide Communities Development Authority Rev., (Collis P and Howard Huntington Memorial Hospital Obligated Group), 5.00%, 7/1/25 | 300,000 | 345,951 | ||||
California Statewide Communities Development Authority Rev., (Collis P and Howard Huntington Memorial Hospital Obligated Group), 5.00%, 7/1/26 | 325,000 | 377,878 | ||||
California Statewide Communities Development Authority Rev., (Collis P and Howard Huntington Memorial Hospital Obligated Group), 5.00%, 7/1/27 | 1,880,000 | 2,121,166 | ||||
California Statewide Communities Development Authority Rev., (Cottage Health System Obligated Group), 5.00%, 11/1/18 | 515,000 | 517,678 | ||||
California Statewide Communities Development Authority Rev., (Cottage Health System Obligated Group), 5.25%, 11/1/30 | 1,000,000 | 1,065,800 | ||||
California Statewide Communities Development Authority Rev., (Front Porch Communities & Services), 5.00%, 4/1/24 | 210,000 | 238,081 | ||||
California Statewide Communities Development Authority Rev., (Front Porch Communities & Services), 5.00%, 4/1/25 | 275,000 | 315,884 | ||||
California Statewide Communities Development Authority Rev., (Front Porch Communities & Services), 5.00%, 4/1/30 | 145,000 | 166,656 | ||||
California Statewide Communities Development Authority Rev., (Front Porch Communities & Services), 5.00%, 4/1/31 | 125,000 | 143,059 | ||||
California Statewide Communities Development Authority Rev., (Front Porch Communities & Services), 4.00%, 4/1/32 | 185,000 | 192,213 | ||||
California Statewide Communities Development Authority Rev., (Hebrew Home for Aged Disabled), 3.50%, 11/1/21 (California Mortgage Insurance) | 3,000,000 | 3,053,850 |
18
Principal Amount | Value | |||||
California Statewide Communities Development Authority Rev., (John Muir Health), 5.00%, 7/1/19, Prerefunded at 100% of Par(1) | $ | 2,225,000 | $ | 2,289,102 | ||
California Statewide Communities Development Authority Rev., (Kaiser Credit Group), 5.00%, 4/1/42 | 8,400,000 | 9,140,208 | ||||
California Statewide Communities Development Authority Rev., (Lancer Educational Housing LLC), 4.00%, 6/1/21(4) | 5,335,000 | 5,460,212 | ||||
California Statewide Communities Development Authority Rev., (Lancer Educational Housing LLC), 4.00%, 6/1/26(4) | 3,000,000 | 3,144,270 | ||||
California Statewide Communities Development Authority Rev., (Loma Linda University Medical Center Obligated Group), 5.00%, 12/1/26(4) | 5,000,000 | 5,583,350 | ||||
California Statewide Communities Development Authority Rev., (Loma Linda University Medical Center Obligated Group), 5.00%, 12/1/33(4) | 1,000,000 | 1,112,360 | ||||
California Statewide Communities Development Authority Rev., (Loma Linda University Medical Center Obligated Group), 5.00%, 12/1/36(4) | 3,500,000 | 3,818,325 | ||||
California Statewide Communities Development Authority Rev., (Loma Linda University Medical Center Obligated Group), 5.25%, 12/1/44 | 1,085,000 | 1,177,236 | ||||
California Statewide Communities Development Authority Rev., (Marin General Hospital), 5.00%, 8/1/30 | 500,000 | 589,490 | ||||
California Statewide Communities Development Authority Rev., (Marin General Hospital), 5.00%, 8/1/32 | 675,000 | 789,730 | ||||
California Statewide Communities Development Authority Rev., (Marin General Hospital), 5.00%, 8/1/33 | 450,000 | 524,471 | ||||
California Statewide Communities Development Authority Rev., (Marin General Hospital), 5.00%, 8/1/34 | 625,000 | 726,206 | ||||
California Statewide Communities Development Authority Rev., (Marin General Hospital), 5.00%, 8/1/35 | 725,000 | 839,826 | ||||
California Statewide Communities Development Authority Rev., (Marin General Hospital), 5.00%, 8/1/36 | 700,000 | 808,388 | ||||
California Statewide Communities Development Authority Rev., (Marin General Hospital), 5.00%, 8/1/37 | 500,000 | 576,535 | ||||
California Statewide Communities Development Authority Rev., (Marin General Hospital), 5.00%, 8/1/38 | 500,000 | 573,460 | ||||
California Statewide Communities Development Authority Rev., (Redlands Community Hospital), 5.00%, 10/1/28 | 1,000,000 | 1,136,280 | ||||
California Statewide Communities Development Authority Rev., (Redlands Community Hospital), 5.00%, 10/1/29 | 600,000 | 679,020 | ||||
California Statewide Communities Development Authority Rev., (Redlands Community Hospital), 5.00%, 10/1/31 | 870,000 | 975,348 | ||||
California Statewide Communities Development Authority Rev., (Southern California Edison Co.), VRDN, 2.625%, 12/1/23, resets off the remarketing agent | 4,750,000 | 4,783,535 | ||||
California Statewide Communities Development Authority Rev., (Trinity Health Corp. Obligated Group), 5.00%, 12/1/41 | 2,070,000 | 2,267,851 | ||||
California Statewide Communities Development Authority Rev., (Viamonte Senior Living 1, Inc.), 3.00%, 7/1/25 (California Mortgage Insurance) | 2,500,000 | 2,539,875 | ||||
California Statewide Communities Development Authority Rev., (Viamonte Senior Living 1, Inc.), 3.00%, 7/1/26 (California Mortgage Insurance) | 2,750,000 | 2,786,382 | ||||
California Statewide Communities Development Authority Rev., (Viamonte Senior Living 1, Inc.), 3.00%, 7/1/27 (California Mortgage Insurance) | 1,500,000 | 1,517,130 | ||||
California Statewide Communities Development Authority Special Tax, 4.25%, 9/1/21 | 1,130,000 | 1,190,613 |
19
Principal Amount | Value | |||||
California Statewide Communities Development Authority Special Tax, 5.00%, 9/1/27 | $ | 875,000 | $ | 967,155 | ||
California Statewide Communities Development Authority Special Tax, 5.00%, 9/1/37 | 2,225,000 | 2,466,012 | ||||
Carson Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 10/1/19 (AGM) | 800,000 | 830,184 | ||||
Carson Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 10/1/20 (AGM) | 785,000 | 836,355 | ||||
Cathedral City Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 8/1/28 (AGM) | 1,190,000 | 1,345,390 | ||||
Chabot-Las Positas Community College District GO, 4.00%, 8/1/19 | 3,500,000 | 3,584,770 | ||||
Chaffey Joint Union High School District GO, 5.00%, 8/1/30 | 3,125,000 | 3,534,375 | ||||
Chaffey Joint Union High School District GO, 5.00%, 8/1/32 | 1,220,000 | 1,375,574 | ||||
City & County of San Francisco COP, 5.00%, 10/1/19 | 2,930,000 | 3,041,516 | ||||
City & County of San Francisco COP, 5.00%, 4/1/26 | 5,000,000 | 5,959,150 | ||||
City & County of San Francisco GO, 5.00%, 6/15/25 | 1,880,000 | 2,145,851 | ||||
Clovis Unified School District GO, Capital Appreciation, 0.00%, 8/1/24 (NATL)(2) | 5,935,000 | 5,164,103 | ||||
Commerce Community Development Commission Successor Agency Tax Allocation, 5.00%, 8/1/19 | 1,300,000 | 1,340,638 | ||||
Commerce Community Development Commission Successor Agency Tax Allocation, 5.00%, 8/1/20 | 915,000 | 973,148 | ||||
Commerce Community Development Commission Successor Agency Tax Allocation, 5.00%, 8/1/21 | 500,000 | 543,900 | ||||
Commerce Community Development Commission Successor Agency Tax Allocation, 5.00%, 8/1/22 | 350,000 | 389,393 | ||||
Commerce Community Development Commission Successor Agency Tax Allocation, 5.00%, 8/1/23 (AGM) | 600,000 | 681,294 | ||||
Contra Costa Transportation Authority Rev., 5.00%, 3/1/29 | 1,000,000 | 1,210,560 | ||||
Contra Costa Transportation Authority Rev., 5.00%, 3/1/30 | 1,250,000 | 1,505,712 | ||||
Contra Costa Transportation Authority Rev., 5.00%, 3/1/31 | 1,000,000 | 1,198,600 | ||||
Del Mar Race Track Authority Rev., 4.00%, 10/1/19 | 1,275,000 | 1,296,854 | ||||
Del Mar Race Track Authority Rev., 4.00%, 10/1/20 | 1,330,000 | 1,373,837 | ||||
Del Mar Race Track Authority Rev., 5.00%, 10/1/35 | 660,000 | 716,450 | ||||
East Side Union High School District GO, 5.00%, 8/1/25 | 1,405,000 | 1,565,929 | ||||
Fontana Special Tax, 4.00%, 9/1/18 | 740,000 | 740,000 | ||||
Fontana Special Tax, 4.00%, 9/1/19 | 390,000 | 397,675 | ||||
Fontana Special Tax, 5.00%, 9/1/20 | 545,000 | 576,065 | ||||
Fontana Special Tax, 5.00%, 9/1/22 | 520,000 | 572,593 | ||||
Fontana Special Tax, 5.00%, 9/1/24 | 575,000 | 651,757 | ||||
Fontana Special Tax, (Fontana Community Facilities District No. 31 Citrus Heights North), 4.00%, 9/1/28 | 750,000 | 805,598 | ||||
Fontana Special Tax, (Fontana Community Facilities District No. 31 Citrus Heights North), 4.00%, 9/1/29 | 555,000 | 591,236 | ||||
Fontana Special Tax, (Fontana Community Facilities District No. 31 Citrus Heights North), 4.00%, 9/1/30 | 1,110,000 | 1,168,886 | ||||
Fontana Special Tax, (Fontana Community Facilities District No. 31 Citrus Heights North), 4.00%, 9/1/31 | 925,000 | 966,884 | ||||
Fontana Special Tax, (Fontana Community Facilities District No. 31 Citrus Heights North), 4.00%, 9/1/32 | 1,000,000 | 1,042,700 | ||||
Fontana Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 10/1/32 | 1,195,000 | 1,413,769 | ||||
Foothill-Eastern Transportation Corridor Agency Rev., 6.25%, 1/15/33 | 3,750,000 | 4,379,587 |
20
Principal Amount | Value | |||||
Foothill-Eastern Transportation Corridor Agency Rev., 6.50%, 1/15/43 | $ | 500,000 | $ | 585,235 | ||
Foothill-Eastern Transportation Corridor Agency Rev., 5.75%, 1/15/46 | 1,000,000 | 1,138,930 | ||||
Foothill-Eastern Transportation Corridor Agency Rev., 6.00%, 1/15/49 | 6,250,000 | 7,269,375 | ||||
Foothill-Eastern Transportation Corridor Agency Rev., Capital Appreciation, 0.00%, 1/15/24(3) | 2,300,000 | 2,112,895 | ||||
Foothill-Eastern Transportation Corridor Agency Rev., Capital Appreciation, 0.00%, 1/15/33(2) | 750,000 | 417,555 | ||||
Foothill-Eastern Transportation Corridor Agency Rev., Capital Appreciation, 0.00%, 1/15/42(2) | 6,070,000 | 2,180,951 | ||||
Foothill-Eastern Transportation Corridor Agency Rev., VRDN, 5.00%, 1/15/20, resets off the remarketing agent | 5,000,000 | 5,127,750 | ||||
Foothill-Eastern Transportation Corridor Agency Rev., VRDN, 5.50%, 1/15/23, resets off the remarketing agent | 3,750,000 | 4,205,587 | ||||
Fresno Joint Powers Financing Authority Rev., 5.00%, 4/1/24 (AGM) | 1,350,000 | 1,544,899 | ||||
Fresno Joint Powers Financing Authority Rev., 5.00%, 4/1/26 (AGM) | 1,650,000 | 1,921,804 | ||||
Fresno Joint Powers Financing Authority Rev., 5.00%, 4/1/28 (AGM) | 1,400,000 | 1,639,078 | ||||
Fresno Joint Powers Financing Authority Rev., 5.00%, 4/1/29 (AGM) | 1,000,000 | 1,164,130 | ||||
Fresno Joint Powers Financing Authority Rev., 5.00%, 4/1/30 (AGM) | 1,350,000 | 1,563,772 | ||||
Garden Grove Agency Community Development Successor Agency Tax Allocation, 5.00%, 10/1/22 (BAM) | 500,000 | 559,620 | ||||
Garden Grove Agency Community Development Successor Agency Tax Allocation, 5.00%, 10/1/23 (BAM) | 500,000 | 570,445 | ||||
Golden Empire Schools Financing Authority Rev., (Kern High School District), 5.00%, 5/1/21 | 3,000,000 | 3,253,470 | ||||
Golden State Tobacco Securitization Corp. Rev., 5.00%, 6/1/19 | 3,450,000 | 3,537,802 | ||||
Golden State Tobacco Securitization Corp. Rev., 5.00%, 6/1/19 | 1,000,000 | 1,025,450 | ||||
Golden State Tobacco Securitization Corp. Rev., 5.00%, 6/1/20 | 1,000,000 | 1,057,170 | ||||
Golden State Tobacco Securitization Corp. Rev., 5.00%, 6/1/20 | 1,000,000 | 1,057,520 | ||||
Golden State Tobacco Securitization Corp. Rev., 5.00%, 6/1/21 | 1,000,000 | 1,085,400 | ||||
Golden State Tobacco Securitization Corp. Rev., 5.00%, 6/1/22 | 2,070,000 | 2,298,114 | ||||
Golden State Tobacco Securitization Corp. Rev., 5.00%, 6/1/23 | 3,000,000 | 3,399,090 | ||||
Golden State Tobacco Securitization Corp. Rev., 5.00%, 6/1/24 | 2,435,000 | 2,744,586 | ||||
Golden State Tobacco Securitization Corp. Rev., 5.00%, 6/1/25 | 10,000,000 | 11,394,800 | ||||
Golden State Tobacco Securitization Corp. Rev., 5.00%, 6/1/26 | 1,000,000 | 1,148,330 | ||||
Golden State Tobacco Securitization Corp. Rev., 5.00%, 6/1/28 | 10,000,000 | 11,535,300 | ||||
Golden State Tobacco Securitization Corp. Rev., 5.00%, 6/1/29 | 6,650,000 | 7,400,918 | ||||
Golden State Tobacco Securitization Corp. Rev., 5.00%, 6/1/29 | 4,000,000 | 4,594,200 | ||||
Golden State Tobacco Securitization Corp. Rev., 5.00%, 6/1/30 | 1,000,000 | 1,109,620 | ||||
Golden State Tobacco Securitization Corp. Rev., 3.50%, 6/1/36 | 7,500,000 | 7,534,725 | ||||
Golden State Tobacco Securitization Corp. Rev., 5.25%, 6/1/47 | 2,500,000 | 2,608,250 | ||||
Golden State Tobacco Securitization Corp. Rev., Capital Appreciation, 0.00%, 6/1/25 (AGM)(2) | 3,000,000 | 2,530,770 | ||||
Grossmont-Cuyamaca Community College District GO, 5.25%, 8/1/27 | 750,000 | 863,340 | ||||
Hayward Area Recreation & Park District COP, 5.125%, 1/1/24, Prerefunded at 100% of Par(1) | 2,750,000 | 3,201,385 |
21
Principal Amount | Value | |||||
Huntington Beach Union High School District GO, 5.00%, 8/1/26 | $ | 3,030,000 | $ | 3,448,110 | ||
Inglewood Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 5/1/22 (BAM) | 350,000 | 386,957 | ||||
Inglewood Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 5/1/23 (BAM) | 1,000,000 | 1,128,900 | ||||
Inglewood Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 5/1/25 (BAM) | 1,500,000 | 1,745,550 | ||||
Inglewood Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 5/1/38 (BAM) | 500,000 | 563,925 | ||||
Inglewood Unified School District GO, 4.00%, 8/1/21 (BAM) | 400,000 | 422,004 | ||||
Inglewood Unified School District GO, 5.00%, 8/1/29 (BAM) | 235,000 | 269,815 | ||||
Inglewood Unified School District GO, 5.00%, 8/1/31 (BAM) | 500,000 | 568,020 | ||||
Inglewood Unified School District GO, 5.00%, 8/1/32 (BAM) | 500,000 | 565,765 | ||||
Inglewood Unified School District GO, 5.00%, 8/1/34 (BAM) | 300,000 | 337,002 | ||||
Inglewood Unified School District GO, 5.00%, 8/1/35 (BAM) | 855,000 | 957,916 | ||||
Inglewood Unified School District GO, 5.00%, 8/1/37 (BAM) | 500,000 | 557,235 | ||||
Inland Valley Development Agency Tax Allocation, 5.25%, 9/1/37 | 1,665,000 | 1,855,959 | ||||
Inland Valley Development Agency Tax Allocation, 5.00%, 9/1/44 | 1,765,000 | 1,912,660 | ||||
Irvine Special Assessment, 4.00%, 9/2/18 | 1,250,000 | 1,250,000 | ||||
Irvine Special Assessment, 4.00%, 9/2/19 | 1,375,000 | 1,409,128 | ||||
Irvine Special Assessment, 4.00%, 9/2/19 | 2,000,000 | 2,049,640 | ||||
Irvine Special Assessment, 5.00%, 9/2/26 | 1,500,000 | 1,785,675 | ||||
Irvine Special Tax, 5.00%, 9/1/39 | 1,000,000 | 1,079,850 | ||||
Irvine Special Tax, 5.00%, 9/1/49 | 1,000,000 | 1,074,260 | ||||
Irvine Unified School District Special Tax, 5.00%, 9/1/18, Prerefunded at 100% of Par(1) | 450,000 | 450,000 | ||||
Irvine Unified School District Special Tax, 5.00%, 9/1/21 | 1,500,000 | 1,624,470 | ||||
Irvine Unified School District Special Tax, 5.00%, 9/1/23 | 1,135,000 | 1,272,403 | ||||
Irvine Unified School District Special Tax, 5.00%, 9/1/25 | 1,330,000 | 1,525,470 | ||||
Irvine Unified School District Special Tax, 5.00%, 9/1/26 | 640,000 | 740,659 | ||||
Irvine Unified School District Special Tax, 4.00%, 9/1/36 (AGM) | 1,500,000 | 1,562,490 | ||||
Jurupa Public Financing Authority Special Tax, 5.00%, 9/1/23 | 625,000 | 710,419 | ||||
Jurupa Public Financing Authority Special Tax, 5.00%, 9/1/24 | 680,000 | 785,053 | ||||
Jurupa Public Financing Authority Special Tax, 5.00%, 9/1/25 | 1,000,000 | 1,148,440 | ||||
La Quinta Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/19 | 1,150,000 | 1,188,905 | ||||
La Quinta Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/20 | 1,045,000 | 1,115,339 | ||||
La Quinta Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/31 | 4,265,000 | 4,885,259 | ||||
La Verne COP, (Brethren Hillcrest Homes), 5.00%, 5/15/20 | 640,000 | 673,350 | ||||
La Verne COP, (Brethren Hillcrest Homes), 5.00%, 5/15/21 | 315,000 | 339,315 | ||||
La Verne COP, (Brethren Hillcrest Homes), 5.00%, 5/15/22 | 225,000 | 247,399 | ||||
La Verne COP, (Brethren Hillcrest Homes), 5.00%, 5/15/29 | 635,000 | 671,932 | ||||
Lancaster Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 8/1/24 (AGM) | 435,000 | 502,360 | ||||
Lancaster Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 8/1/25 (AGM) | 600,000 | 703,296 | ||||
Long Beach Bond Finance Authority Rev., 5.00%, 11/15/35 (GA: Merrill Lynch & Co.) | 1,545,000 | 1,871,551 | ||||
Long Beach Bond Finance Authority Rev., 5.50%, 11/15/37 | 695,000 | 894,896 |
22
Principal Amount | Value | |||||
Long Beach Marina System Rev., 5.00%, 5/15/23 | $ | 650,000 | $ | 718,497 | ||
Long Beach Marina System Rev., 5.00%, 5/15/24 | 1,380,000 | 1,542,564 | ||||
Long Beach Marina System Rev., 5.00%, 5/15/25 | 500,000 | 564,095 | ||||
Long Beach Marina System Rev., 5.00%, 5/15/27 | 800,000 | 905,680 | ||||
Long Beach Marina System Rev., 5.00%, 5/15/28 | 600,000 | 676,920 | ||||
Long Beach Marina System Rev., 5.00%, 5/15/40 | 3,750,000 | 4,121,587 | ||||
Los Alamitos Unified School District COP, Capital Appreciation, 0.00%, 8/1/24(3) | 3,200,000 | 2,921,504 | ||||
Los Angeles Community College District GO, 5.00%, 6/1/26 | 2,115,000 | 2,566,066 | ||||
Los Angeles County COP, 5.00%, 3/1/21 | 1,195,000 | 1,294,663 | ||||
Los Angeles County COP, 5.00%, 3/1/22 | 1,000,000 | 1,110,610 | ||||
Los Angeles County Facilities, Inc. Rev., (Los Angeles County), 5.00%, 12/1/34 | 2,620,000 | 3,101,739 | ||||
Los Angeles County Facilities, Inc. Rev., (Los Angeles County), 5.00%, 12/1/35 | 1,390,000 | 1,637,489 | ||||
Los Angeles County Facilities, Inc. Rev., (Los Angeles County), 5.00%, 12/1/37 | 2,670,000 | 3,127,371 | ||||
Los Angeles County Facilities, Inc. Rev., (Los Angeles County), 5.00%, 12/1/38 | 1,860,000 | 2,173,261 | ||||
Los Angeles County Metropolitan Transportation Authority Rev., 5.00%, 7/1/20 | 3,000,000 | 3,190,770 | ||||
Los Angeles County Metropolitan Transportation Authority Rev., 5.00%, 7/1/21 | 2,470,000 | 2,713,715 | ||||
Los Angeles County Redevelopment Refunding Authority Redev Agency Successor Agy Tax Allocation, Capital Appreciation, 0.00%, 12/1/19 (AGM)(2) | 1,500,000 | 1,464,555 | ||||
Los Angeles County Sanitation Districts Financing Authority Rev., 5.00%, 10/1/23 | 2,855,000 | 3,283,992 | ||||
Los Angeles County Sanitation Districts Financing Authority Rev., 5.00%, 10/1/26 | 2,700,000 | 3,200,364 | ||||
Los Angeles Department of Airports Rev., 5.00%, 5/15/24 | 3,040,000 | 3,223,616 | ||||
Los Angeles Department of Airports Rev., 5.00%, 5/15/26 | 1,500,000 | 1,751,940 | ||||
Los Angeles Department of Airports Rev., 5.00%, 5/15/27 | 1,280,000 | 1,489,805 | ||||
Los Angeles Department of Airports Rev., 5.00%, 5/15/33 | 1,350,000 | 1,569,820 | ||||
Los Angeles Department of Airports Rev., 5.00%, 5/15/34 | 1,250,000 | 1,449,362 | ||||
Los Angeles Department of Airports Rev., 5.00%, 5/15/35 | 1,500,000 | 1,734,240 | ||||
Los Angeles Department of Airports Rev., 5.00%, 5/15/40 | 3,000,000 | 3,162,000 | ||||
Los Angeles Department of Airports Rev., 5.00%, 5/15/40 | 2,000,000 | 2,106,280 | ||||
Los Angeles Department of Water Rev., 5.00%, 7/1/23 | 3,345,000 | 3,857,253 | ||||
Los Angeles Department of Water Rev., 5.00%, 7/1/24 | 1,500,000 | 1,682,985 | ||||
Los Angeles Department of Water Rev., 5.00%, 7/1/24 | 4,350,000 | 5,113,425 | ||||
Los Angeles Department of Water Rev., 5.00%, 7/1/25 | 3,940,000 | 4,709,600 | ||||
Los Angeles Department of Water Rev., 5.00%, 7/1/26 | 4,040,000 | 4,900,439 | ||||
Los Angeles Department of Water Rev., 5.00%, 7/1/27 | 2,125,000 | 2,607,332 | ||||
Los Angeles Department of Water Rev., 5.00%, 7/1/28 | 2,840,000 | 3,488,031 | ||||
Los Angeles Department of Water Rev., 5.00%, 7/1/29 | 6,030,000 | 7,360,580 | ||||
Los Angeles Department of Water & Power System Rev., 5.00%, 7/1/26 | 1,300,000 | 1,498,770 | ||||
Los Angeles Department of Water & Power System Rev., 5.00%, 7/1/26 | 1,000,000 | 1,120,810 | ||||
Los Angeles Department of Water & Power System Rev., 5.00%, 7/1/27 | 6,470,000 | 7,380,264 |
23
Principal Amount | Value | |||||
Los Angeles Unified School District COP, 5.00%, 10/1/29 | $ | 1,700,000 | $ | 1,886,507 | ||
Los Angeles Unified School District GO, 5.00%, 7/1/21 | 3,000,000 | 3,289,890 | ||||
Los Angeles Unified School District GO, 5.00%, 7/1/21 | 1,120,000 | 1,228,226 | ||||
Los Angeles Unified School District GO, 5.00%, 7/1/24 | 5,000,000 | 5,874,500 | ||||
Los Angeles Unified School District GO, 5.00%, 7/1/24 | 5,140,000 | 5,617,249 | ||||
Los Angeles Unified School District GO, 5.00%, 7/1/26 | 2,500,000 | 3,028,425 | ||||
Los Angeles Unified School District GO, 5.00%, 7/1/26 | 3,555,000 | 4,119,250 | ||||
Los Angeles Unified School District GO, 5.25%, 7/1/26 | 4,000,000 | 4,262,560 | ||||
Los Angeles Unified School District GO, 5.00%, 7/1/27 | 1,050,000 | 1,214,157 | ||||
Los Angeles Unified School District GO, 5.00%, 7/1/30 | 1,155,000 | 1,330,791 | ||||
Los Angeles Wastewater System Rev., 5.75%, 6/1/19, Prerefunded at 100% of Par(1) | 1,325,000 | 1,367,890 | ||||
M-S-R Energy Authority Rev., 7.00%, 11/1/34 (GA: Citigroup, Inc.) | 5,880,000 | 8,339,428 | ||||
M-S-R Energy Authority Rev., 7.00%, 11/1/34 | 1,000,000 | 1,418,270 | ||||
M-S-R Energy Authority Rev., 6.50%, 11/1/39 | 1,425,000 | 2,001,541 | ||||
M-S-R Energy Authority Rev., 6.50%, 11/1/39 (GA: Citigroup, Inc.) | 1,180,000 | 1,657,416 | ||||
Manhattan Beach Unified School District GO, Capital Appreciation, 0.00%, 9/1/29(2) | 5,905,000 | 4,261,698 | ||||
Menlo Park Community Development Agency Successor Agency Tax Allocation, 4.00%, 10/1/18 | 885,000 | 886,673 | ||||
Menlo Park Community Development Agency Successor Agency Tax Allocation, 5.00%, 10/1/19 | 420,000 | 435,666 | ||||
Menlo Park Community Development Agency Successor Agency Tax Allocation, 5.00%, 10/1/20 | 325,000 | 347,500 | ||||
Milpitas Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/25 | 2,325,000 | 2,757,822 | ||||
Milpitas Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/26 | 6,285,000 | 7,365,957 | ||||
Modesto Irrigation District COP, 5.75%, 4/1/19, Prerefunded at 100% of Par(1) | 1,580,000 | 1,619,010 | ||||
Modesto Irrigation District COP, 5.75%, 10/1/34 | 920,000 | 940,470 | ||||
Municipal Improvement Corp. of Los Angeles Rev., 5.00%, 11/1/22 | 1,000,000 | 1,130,550 | ||||
Municipal Improvement Corp. of Los Angeles Rev., 5.00%, 3/1/25 | 3,000,000 | 3,313,560 | ||||
Municipal Improvement Corp. of Los Angeles Rev., 5.00%, 11/1/25 | 750,000 | 896,535 | ||||
Murrieta Financing Authority Special Tax, 5.00%, 9/1/21 | 1,200,000 | 1,302,852 | ||||
Napa Valley Community College District GO, Capital Appreciation, 0.00%, 8/1/21(3) | 5,745,000 | 5,639,694 | ||||
Napa Valley Community College District GO, Capital Appreciation, 0.00%, 8/1/21(3) | 2,850,000 | 2,752,473 | ||||
Napa Valley Community College District GO, Capital Appreciation, 0.00%, 8/1/21(3) | 1,500,000 | 1,440,705 | ||||
Natomas Unified School District GO, 5.00%, 9/1/26 (BAM) | 1,785,000 | 2,031,687 | ||||
Newport Beach Rev., (Hoag Memorial Hospital/Newport Healthcare Obligated Group), 6.00%, 12/1/21, Prerefunded at 100% of Par(1) | 2,000,000 | 2,276,620 | ||||
Norman Y Mineta San Jose International Airport SJC Rev., 5.00%, 3/1/27 | 1,295,000 | 1,481,519 | ||||
Norman Y Mineta San Jose International Airport SJC Rev., 5.00%, 3/1/28 | 1,500,000 | 1,712,700 | ||||
Norman Y Mineta San Jose International Airport SJC Rev., 5.00%, 3/1/30 | 1,750,000 | 1,991,377 | ||||
Norman Y Mineta San Jose International Airport SJC Rev., 5.00%, 3/1/31 | 1,000,000 | 1,136,820 | ||||
North Lake Tahoe Public Financing Authority Rev., 4.00%, 12/1/19 | 1,000,000 | 1,032,180 |
24
Principal Amount | Value | |||||
Northern California Power Agency Rev., 5.00%, 8/1/19 | $ | 2,000,000 | $ | 2,063,440 | ||
Northern California Power Agency Rev., 5.00%, 8/1/20 | 1,515,000 | 1,584,342 | ||||
Northern California Power Agency Rev., 5.00%, 8/1/21 | 2,050,000 | 2,142,065 | ||||
Northern California Power Agency Rev., 5.25%, 8/1/22 | 4,250,000 | 4,456,762 | ||||
Northern California Power Agency Rev., 5.00%, 7/1/26 | 1,750,000 | 1,946,997 | ||||
Northern California Power Agency Rev., 5.00%, 7/1/27 | 2,000,000 | 2,223,580 | ||||
Northern California Transmission Agency Rev., 5.00%, 5/1/28 | 1,000,000 | 1,183,110 | ||||
Northern California Transmission Agency Rev., 5.00%, 5/1/29 | 1,000,000 | 1,177,750 | ||||
Northern California Transmission Agency Rev., 5.00%, 5/1/30 | 1,855,000 | 2,173,411 | ||||
Oakland Alameda County Coliseum Authority Rev., 5.00%, 2/1/25 | 4,065,000 | 4,463,085 | ||||
Oakland Sewer Rev., 5.00%, 6/15/26 | 1,200,000 | 1,389,792 | ||||
Oakland State Building Authority Rev., 5.00%, 12/1/22 | 3,825,000 | 4,287,366 | ||||
Oakland Unified School District/Alameda County GO, 5.00%, 8/1/20 | 1,670,000 | 1,779,051 | ||||
Oakland Unified School District/Alameda County GO, 6.625%, 8/1/21, Prerefunded at 100% of Par(1) | 1,870,000 | 2,136,269 | ||||
Oakland Unified School District/Alameda County GO, 5.00%, 8/1/22 | 660,000 | 714,437 | ||||
Oakland Unified School District/Alameda County GO, 5.50%, 8/1/22, Prerefunded at 100% of Par(1) | 3,150,000 | 3,600,418 | ||||
Oakland Unified School District/Alameda County GO, 5.00%, 8/1/23 | 1,400,000 | 1,610,126 | ||||
Oakland Unified School District/Alameda County GO, 5.00%, 8/1/25 | 650,000 | 774,716 | ||||
Oakland Unified School District/Alameda County GO, 5.00%, 8/1/25 | 2,500,000 | 2,979,675 | ||||
Oakland Unified School District/Alameda County GO, 5.00%, 8/1/31 | 2,755,000 | 3,270,323 | ||||
Ontario Community Facilities District No. 24 Special Tax, 4.00%, 9/1/20 | 295,000 | 305,219 | ||||
Ontario Community Facilities District No. 24 Special Tax, 4.00%, 9/1/21 | 285,000 | 299,002 | ||||
Ontario Community Facilities District No. 24 Special Tax, 4.00%, 9/1/22 | 300,000 | 316,749 | ||||
Ontario Community Facilities District No. 24 Special Tax, 4.00%, 9/1/23 | 60,000 | 63,560 | ||||
Ontario Community Facilities District No. 30 Special Tax, 4.00%, 9/1/24 | 315,000 | 334,993 | ||||
Ontario Community Facilities District No. 30 Special Tax, 4.00%, 9/1/25 | 325,000 | 346,197 | ||||
Ontario Community Facilities District No. 30 Special Tax, 4.00%, 9/1/26 | 340,000 | 363,246 | ||||
Ontario Community Facilities District No. 30 Special Tax, 4.00%, 9/1/29 | 230,000 | 239,885 | ||||
Orange County Special Assessment, 3.00%, 9/2/25 | 285,000 | 298,569 | ||||
Orange County Special Assessment, 5.00%, 9/2/26 | 600,000 | 714,270 | ||||
Orange County Special Assessment, 5.00%, 9/2/28 | 600,000 | 730,122 | ||||
Orange County Special Assessment, 5.00%, 9/2/30 | 875,000 | 1,050,210 | ||||
Orange County Community Facilities District Special Tax, 5.00%, 8/15/28 | 1,960,000 | 2,134,675 | ||||
Orange County Community Facilities District Special Tax, 5.00%, 8/15/29 | 2,000,000 | 2,244,780 | ||||
Orange County Community Facilities District Special Tax, 5.00%, 8/15/30 | 2,220,000 | 2,483,470 | ||||
Orange County Community Facilities District Special Tax, 5.00%, 8/15/32 | 2,575,000 | 2,863,451 | ||||
Orange County Community Facilities District Special Tax, 5.00%, 8/15/35 | 1,000,000 | 1,094,970 | ||||
Oxnard Financing Authority Rev., 5.00%, 6/1/25 (AGM) | 2,000,000 | 2,277,160 |
25
Principal Amount | Value | |||||
Oxnard Financing Authority Rev., 5.00%, 6/1/26 (AGM) | $ | 3,690,000 | $ | 4,192,873 | ||
Oxnard Financing Authority Rev., 5.00%, 6/1/28 (AGM) | 1,515,000 | 1,714,525 | ||||
Oxnard Financing Authority Rev., 5.00%, 6/1/32 (AGM) | 2,500,000 | 2,806,525 | ||||
Oxnard Financing Authority Rev., 5.00%, 6/1/33 (AGM) | 1,000,000 | 1,119,780 | ||||
Oxnard School District GO, VRN, 3.00%, 8/1/20 (AGM)(3) | 3,500,000 | 3,711,680 | ||||
Palm Desert Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 10/1/30 (BAM) | 350,000 | 415,055 | ||||
Palmdale Community Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/28 (NATL) | 2,150,000 | 2,535,344 | ||||
Palmdale Community Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/29 (NATL) | 2,075,000 | 2,437,067 | ||||
Palmdale Community Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/30 (NATL) | 1,215,000 | 1,418,403 | ||||
Palomar Health COP, 6.75%, 11/1/19, Prerefunded at 100% of Par(1) | 500,000 | 530,245 | ||||
Palomar Health COP, 5.25%, 11/1/20, Prerefunded at 100% of Par(1) | 620,000 | 647,509 | ||||
Palomar Health COP, (Palomar Health Obligated Group), 5.00%, 11/1/20 | 535,000 | 562,767 | ||||
Palomar Health COP, (Palomar Health Obligated Group), 6.00%, 11/1/20, Prerefunded at 100% of Par(1) | 1,870,000 | 2,048,622 | ||||
Palomar Health COP, (Palomar Health Obligated Group), 5.00%, 11/1/22 | 770,000 | 837,883 | ||||
Palomar Health COP, (Palomar Health Obligated Group), 5.00%, 11/1/25 | 650,000 | 730,464 | ||||
Palomar Health COP, (Palomar Health Obligated Group), 5.00%, 11/1/26 | 475,000 | 537,387 | ||||
Palomar Health COP, (Palomar Health Obligated Group), 5.00%, 11/1/27 | 720,000 | 818,446 | ||||
Palomar Health COP, (Palomar Health Obligated Group), 5.00%, 11/1/32 | 4,000,000 | 4,426,720 | ||||
Palomar Health GO, Capital Appreciation, 0.00%, 8/1/19 (AGC)(3) | 3,330,000 | 4,194,368 | ||||
Palomar Health Rev., 5.00%, 11/1/21 | 3,625,000 | 3,883,390 | ||||
Palomar Health Rev., 5.00%, 11/1/24 | 2,375,000 | 2,647,151 | ||||
Palomar Health Rev., 5.00%, 11/1/27 | 4,100,000 | 4,607,129 | ||||
Palomar Health Rev., 5.00%, 11/1/29 | 4,585,000 | 5,110,395 | ||||
Palomar Health Rev., 5.00%, 11/1/39 | 4,080,000 | 4,408,522 | ||||
Palos Verdes Peninsula Unified School District GO, 0.00%, 8/1/33(2) | 2,600,000 | 1,653,444 | ||||
Peralta Community College District GO, 5.00%, 8/1/22 | 2,145,000 | 2,400,126 | ||||
Pittsburg Successor Agency Redevelopment Agency Tax Allocation, 5.00%, 9/1/29 (AGM) | 3,000,000 | 3,464,880 | ||||
Pomona Unified School District GO, 6.55%, 8/1/29 (NATL) | 1,000,000 | 1,245,270 | ||||
Pomona Unified School District GO, 6.15%, 8/1/30 (NATL) | 855,000 | 980,181 | ||||
Porterville Public Financing Authority Rev., 5.625%, 10/1/36 | 4,000,000 | 4,434,960 | ||||
Poway Unified School District GO, Capital Appreciation, 0.00%, 8/1/41(2) | 4,890,000 | 1,978,347 | ||||
Poway Unified School District Rev., 7.875%, 9/15/19, Prerefunded at 100% of Par(1) | 1,010,000 | 1,075,630 | ||||
Poway Unified School District Public Financing Authority Special Tax, 5.00%, 9/1/31 | 1,650,000 | 1,930,104 | ||||
Rancho Santa Fe Community Services District Special Tax, 5.125%, 9/1/21, Prerefunded at 100% of Par(1) | 790,000 | 868,771 | ||||
Rancho Santa Fe Community Services District Special Tax, 5.25%, 9/1/21, Prerefunded at 100% of Par(1) | 1,300,000 | 1,434,329 |
26
Principal Amount | Value | |||||
Rancho Santa Fe Community Services District Special Tax, 5.375%, 9/1/21, Prerefunded at 100% of Par(1) | $ | 1,410,000 | $ | 1,560,814 | ||
Redding Electric System Rev., 5.00%, 6/1/28 | 1,000,000 | 1,209,090 | ||||
Redding Electric System Rev., 5.00%, 6/1/29 | 1,250,000 | 1,502,600 | ||||
Redding Electric System Rev., 5.00%, 6/1/30 | 1,250,000 | 1,485,275 | ||||
Regents of the University of California Medical Center Pooled Rev., 5.00%, 5/15/33 | 3,015,000 | 3,473,401 | ||||
Regents of the University of California Medical Center Pooled Rev., 5.00%, 5/15/34 | 2,000,000 | 2,296,620 | ||||
Rio Elementary School District Community Facilities District Special Tax, 5.00%, 9/1/24 | 700,000 | 803,068 | ||||
Riverside County Redevelopment Successor Agency Tax Allocation, 6.50%, 10/1/20, Prerefunded at 100% of Par(1) | 1,560,000 | 1,719,214 | ||||
Riverside County Transportation Commission Rev., 5.25%, 6/1/23, Prerefunded at 100% of Par(1) | 1,335,000 | 1,545,903 | ||||
Riverside County Transportation Commission Rev., Capital Appreciation, 0.00%, 6/1/28(2) | 1,000,000 | 699,740 | ||||
Riverside County Transportation Commission Rev., Capital Appreciation, 0.00%, 6/1/30(2) | 1,000,000 | 639,860 | ||||
Riverside County Transportation Commission Rev., Capital Appreciation, 0.00%, 6/1/31(2) | 1,555,000 | 950,696 | ||||
Riverside Sewer Rev., 5.00%, 8/1/25 | 1,630,000 | 1,920,890 | ||||
Riverside Sewer Rev., 5.00%, 8/1/26 | 3,400,000 | 3,985,344 | ||||
Riverside Water Rev., VRDN, 2.12%, 9/6/18, resets weekly off the MUNIPSA plus 0.63% | 7,040,000 | 7,040,915 | ||||
Romoland School District Special Tax, 4.00%, 9/1/21 | 1,035,000 | 1,089,224 | ||||
Romoland School District Special Tax, 5.00%, 9/1/22 | 1,140,000 | 1,257,591 | ||||
Romoland School District Special Tax, (Romoland School District Community Facilities District No. 2004-1 Heritage Lake), 5.00%, 9/1/36 | 1,000,000 | 1,117,150 | ||||
Romoland School District Special Tax, (Romoland School District Community Facilities District No. 2004-1 Heritage Lake), 5.00%, 9/1/37 | 1,100,000 | 1,225,213 | ||||
Romoland School District Special Tax, (Romoland School District Community Facilities District No. 2004-1 Heritage Lake), 5.00%, 9/1/38 | 1,000,000 | 1,112,510 | ||||
Roseville Special Tax, 5.00%, 9/1/25 | 750,000 | 858,668 | ||||
Roseville Special Tax, 5.00%, 9/1/26 | 1,075,000 | 1,240,754 | ||||
Roseville Special Tax, 5.00%, 9/1/28 | 1,025,000 | 1,180,236 | ||||
Roseville Special Tax, 5.00%, 9/1/30 | 1,390,000 | 1,577,136 | ||||
Roseville Special Tax, 5.00%, 9/1/31 | 1,000,000 | 1,128,810 | ||||
Roseville Special Tax, 5.00%, 9/1/32 | 1,250,000 | 1,407,913 | ||||
Roseville Special Tax, 5.00%, 9/1/34 | 1,050,000 | 1,173,144 | ||||
Roseville Water Utility Rev., COP, 5.00%, 12/1/26 | 1,690,000 | 1,968,123 | ||||
Roseville Water Utility Rev., COP, 5.00%, 12/1/27 | 2,250,000 | 2,610,585 | ||||
Sacramento City Financing Authority Rev., 5.40%, 11/1/20 (Ambac) | 1,355,000 | 1,409,756 | ||||
Sacramento County Airport System Rev., 5.00%, 7/1/20 | 1,000,000 | 1,061,730 | ||||
Sacramento County Airport System Rev., 5.00%, 7/1/23 | 1,000,000 | 1,059,500 | ||||
Sacramento County Airport System Rev., 5.00%, 7/1/24 | 1,000,000 | 1,059,130 | ||||
Sacramento County Airport System Rev.,, 5.00%, 7/1/33 | 1,450,000 | 1,707,230 | ||||
Sacramento County Airport System Rev.,, 5.00%, 7/1/34 | 1,000,000 | 1,173,660 | ||||
Sacramento County Airport System Rev.,, 5.00%, 7/1/35 | 1,000,000 | 1,169,940 |
27
Principal Amount | Value | |||||
Sacramento County Sanitation Districts Financing Authority Rev., 5.25%, 12/1/21 (NATL) | $ | 1,000,000 | $ | 1,112,720 | ||
Sacramento County Sanitation Districts Financing Authority Rev., VRN, 2.07%, 9/4/18, resets quarterly off 67% of the 3-month LIBOR plus 0.53% (NATL) | 4,000,000 | 3,906,920 | ||||
Sacramento Municipal Utility District Rev., 5.25%, 7/1/24 (Ambac) | 3,000,000 | 3,411,480 | ||||
Sacramento Municipal Utility District Rev., 5.00%, 8/15/24 | 1,500,000 | 1,685,010 | ||||
Sacramento Municipal Utility District Rev., 5.00%, 8/15/24 | 1,000,000 | 1,179,620 | ||||
Sacramento Municipal Utility District Rev., 5.00%, 8/15/25 | 5,000,000 | 5,610,600 | ||||
Sacramento Municipal Utility District Rev., 5.00%, 8/15/28 | 1,200,000 | 1,497,408 | ||||
Sacramento Redevelopment Agency Successor Agency Tax Allocation, 4.00%, 12/1/18 | 2,000,000 | 2,012,220 | ||||
Sacramento Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 12/1/34 (BAM) | 1,355,000 | 1,545,228 | ||||
Salinas Union High School District GO, 0.00%, 8/1/20(2) | 5,000,000 | 4,803,150 | ||||
San Bernardino Community College District GO, Capital Appreciation, 0.00%, 8/1/19(3) | 17,240,000 | 20,247,001 | ||||
San Bernardino Redevelopment Agency Successor Agency Tax Allocation, 3.00%, 12/1/18 (AGM) | 1,725,000 | 1,732,193 | ||||
San Bernardino Redevelopment Agency Successor Agency Tax Allocation, 4.00%, 12/1/19 (AGM) | 2,665,000 | 2,750,760 | ||||
San Bernardino Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 12/1/20 (AGM) | 2,915,000 | 3,122,694 | ||||
San Bernardino Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 12/1/22 (AGM) | 2,310,000 | 2,588,239 | ||||
San Bernardino Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 12/1/24 (AGM) | 2,310,000 | 2,669,020 | ||||
San Bernardino Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 12/1/25 (AGM) | 1,275,000 | 1,490,335 | ||||
San Buenaventura Rev., (Community Memorial Health System), 8.00%, 12/1/26 | 2,000,000 | 2,309,000 | ||||
San Buenaventura Rev., (Community Memorial Health System), 7.50%, 12/1/41 | 4,300,000 | 4,774,677 | ||||
San Diego Community College District GO, 5.00%, 8/1/30 | 3,000,000 | 3,398,970 | ||||
San Diego County Rev., (Sanford Burnham Prebys Medical Discovery Institute), 5.00%, 11/1/18 | 300,000 | 301,545 | ||||
San Diego County Rev., (Sanford Burnham Prebys Medical Discovery Institute), 5.00%, 11/1/19 | 300,000 | 311,028 | ||||
San Diego County Rev., (Sanford Burnham Prebys Medical Discovery Institute), 5.00%, 11/1/22 | 1,525,000 | 1,697,493 | ||||
San Diego County Rev., (Sanford Burnham Prebys Medical Discovery Institute), 5.00%, 11/1/30 | 675,000 | 766,449 | ||||
San Diego County Regional Airport Authority Rev., 5.00%, 7/1/19 | 1,290,000 | 1,327,165 | ||||
San Diego County Regional Airport Authority Rev., 5.00%, 7/1/21 | 2,000,000 | 2,119,360 | ||||
San Diego County Regional Airport Authority Rev., 5.00%, 7/1/31 | 1,000,000 | 1,173,440 | ||||
San Diego County Regional Airport Authority Rev., 5.00%, 7/1/32 | 850,000 | 994,526 | ||||
San Diego County Regional Airport Authority Rev., 5.00%, 7/1/33 | 1,000,000 | 1,165,780 | ||||
San Diego County Regional Airport Authority Rev., 5.00%, 7/1/34 | 700,000 | 813,673 | ||||
San Diego County Regional Airport Authority Rev., 5.00%, 7/1/34 | 750,000 | 792,120 | ||||
San Diego County Regional Airport Authority Rev., 5.00%, 7/1/35 | 1,000,000 | 1,159,020 | ||||
San Diego County Regional Transportation Commission Rev., 4.00%, 4/1/21 | 20,000,000 | 21,272,400 | ||||
San Diego County Regional Transportation Commission Rev., 5.00%, 4/1/21 | 5,940,000 | 6,478,342 |
28
Principal Amount | Value | |||||
San Diego County Water Authority Financing Corp. Rev., 5.00%, 5/1/25 | $ | 5,250,000 | $ | 6,244,770 | ||
San Diego County Water Authority Financing Corp. Rev., 5.00%, 5/1/26 | 2,390,000 | 2,818,360 | ||||
San Diego County Water Authority Financing Corp. Rev., 5.00%, 5/1/27 | 3,485,000 | 4,100,137 | ||||
San Diego Public Facilities Financing Authority Sewer Rev., 5.00%, 5/15/19, Prerefunded at 100% of Par(1) | 3,680,000 | 3,771,926 | ||||
San Diego Public Facilities Financing Authority Sewer Rev., 5.25%, 5/15/20, Prerefunded at 100% of Par(1) | 3,400,000 | 3,613,622 | ||||
San Diego Public Facilities Financing Authority Sewer Rev., 5.00%, 5/15/28 | 10,000,000 | 11,948,300 | ||||
San Diego Public Facilities Financing Authority Water Rev., 5.00%, 8/1/21 | 2,000,000 | 2,197,060 | ||||
San Diego Public Facilities Financing Authority Water Rev., 5.00%, 8/1/24 | 2,000,000 | 2,249,160 | ||||
San Diego Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/22 | 1,000,000 | 1,127,160 | ||||
San Diego Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/23 | 1,000,000 | 1,154,610 | ||||
San Diego Unified Port District Rev., 5.00%, 9/1/23 | 250,000 | 283,283 | ||||
San Diego Unified Port District Rev., 5.00%, 9/1/24 | 500,000 | 564,290 | ||||
San Diego Unified Port District Rev., 5.00%, 9/1/26 | 750,000 | 844,553 | ||||
San Diego Unified School District GO, 5.00%, 7/1/28 | 5,000,000 | 5,882,250 | ||||
San Diego Unified School District GO, 5.00%, 7/1/32 | 1,000,000 | 1,194,170 | ||||
San Francisco Bay Area Rapid Transit District Rev., 5.00%, 7/1/28 | 1,500,000 | 1,761,555 | ||||
San Francisco City & County Airport Comm-San Francisco International Airport Rev., 5.00%, 5/1/19 | 1,500,000 | 1,535,280 | ||||
San Francisco City & County Airport Comm-San Francisco International Airport Rev., 5.00%, 5/3/21, Prerefunded at 100% of Par(1) | 980,000 | 1,066,720 | ||||
San Francisco City & County Airport Comm-San Francisco International Airport Rev., 5.00%, 5/3/21, Prerefunded at 100% of Par(1) | 1,210,000 | 1,317,073 | ||||
San Francisco City & County Airport Comm-San Francisco International Airport Rev., 5.00%, 5/1/22 | 1,000,000 | 1,111,950 | ||||
San Francisco City & County Airport Comm-San Francisco International Airport Rev., 5.00%, 5/1/23 | 1,500,000 | 1,708,365 | ||||
San Francisco City & County Airport Comm-San Francisco International Airport Rev., 4.00%, 5/1/24 | 1,625,000 | 1,776,320 | ||||
San Francisco City & County Airport Comm-San Francisco International Airport Rev., 5.00%, 5/1/26 | 1,250,000 | 1,387,125 | ||||
San Francisco City & County Airport Comm-San Francisco International Airport Rev., 5.00%, 5/1/29 | 5,060,000 | 5,462,827 | ||||
San Francisco City & County Airport Comm-San Francisco International Airport Rev., 5.00%, 5/1/40 | 2,150,000 | 2,259,155 | ||||
San Francisco City & County Public Utilities Commission Wastewater Rev., 5.00%, 10/1/21 | 5,000,000 | 5,518,700 | ||||
San Francisco City & County Redevelopment Agency Tax Allocation, 5.00%, 8/1/21 | 460,000 | 500,388 | ||||
San Francisco City & County Redevelopment Agency Tax Allocation, 5.00%, 8/1/26 | 425,000 | 487,258 | ||||
San Francisco City & County Redevelopment Agency Tax Allocation, 5.00%, 8/1/27 | 550,000 | 627,638 | ||||
San Francisco City & County Redevelopment Agency Tax Allocation, 5.00%, 8/1/28 | 370,000 | 420,919 |
29
Principal Amount | Value | |||||
San Francisco City & County Redevelopment Agency Tax Allocation, 5.00%, 8/1/31 | $ | 400,000 | $ | 450,600 | ||
San Francisco City & County Redevelopment Financing Authority Tax Allocation, 6.00%, 8/1/19(1) | 510,000 | 531,124 | ||||
San Francisco City & County Redevelopment Financing Authority Tax Allocation, 6.00%, 8/1/20(1) | 515,000 | 558,569 | ||||
San Francisco City & County Redevelopment Financing Authority Tax Allocation, 6.625%, 2/1/21, Prerefunded at 100% of Par(1) | 500,000 | 560,310 | ||||
San Francisco Public Utilities Commission Water Rev., 5.00%, 5/1/20, Prerefunded at 100% of Par(1) | 2,780,000 | 2,941,740 | ||||
San Francisco Public Utilities Commission Water Rev., 5.00%, 11/1/28 | 1,055,000 | 1,217,850 | ||||
San Gorgonio Memorial Health Care District GO, 5.00%, 8/1/25 | 850,000 | 977,594 | ||||
San Joaquin Hills Transportation Corridor Agency Rev., 5.00%, 1/15/34 | 11,920,000 | 13,131,191 | ||||
San Joaquin Hills Transportation Corridor Agency Rev., 5.00%, 1/15/44 | 1,000,000 | 1,089,600 | ||||
San Joaquin Hills Transportation Corridor Agency Rev., 5.25%, 1/15/44 | 1,000,000 | 1,094,800 | ||||
San Jose Unified School District GO, 5.00%, 8/1/19 | 1,000,000 | 1,033,280 | ||||
San Mateo Special Tax, 5.875%, 9/1/32 | 1,375,000 | 1,522,565 | ||||
San Mateo Special Tax, 5.50%, 9/1/44 | 750,000 | 812,948 | ||||
Santa Clara Electric Rev., 5.00%, 7/1/30 | 1,500,000 | 1,633,200 | ||||
Santa Clara Valley Transportation Authority Rev., 5.00%, 4/1/20 | 4,000,000 | 4,219,880 | ||||
Santa Cruz County Redevelopment Agency Tax Allocation, 5.00%, 9/1/35 (AGM) | 1,500,000 | 1,709,175 | ||||
Santa Monica Redevelopment Agency Tax Allocation, 5.00%, 7/1/42 | 1,000,000 | 1,084,190 | ||||
Santa Monica Redevelopment Agency Tax Allocation, 5.875%, 7/1/42 | 1,000,000 | 1,108,110 | ||||
Santa Rosa Wastewater Rev., Capital Appreciation, 0.00%, 9/1/24 (Ambac)(2) | 9,000,000 | 7,787,880 | ||||
Sonoma Community Development Agency Successor Agency Tax Allocation, 5.00%, 6/1/23 (NATL) | 1,000,000 | 1,101,940 | ||||
Sonoma Community Development Agency Successor Agency Tax Allocation, 5.00%, 6/1/25 (NATL) | 1,390,000 | 1,610,968 | ||||
Sonoma Community Development Agency Successor Agency Tax Allocation, 5.00%, 6/1/29 (NATL) | 1,100,000 | 1,264,813 | ||||
Sonoma Community Development Agency Successor Agency Tax Allocation, 5.00%, 6/1/33 (NATL) | 1,325,000 | 1,502,828 | ||||
South Orange County Public Financing Authority Special Tax, 5.00%, 8/15/20 | 1,100,000 | 1,171,753 | ||||
South Orange County Public Financing Authority Special Tax, 5.00%, 8/15/21 | 1,500,000 | 1,641,555 | ||||
South Orange County Public Financing Authority Special Tax, 5.00%, 8/15/23 | 1,200,000 | 1,367,448 | ||||
South Orange County Public Financing Authority Special Tax, 5.00%, 8/15/25 | 1,125,000 | 1,319,704 | ||||
South Orange County Public Financing Authority Special Tax, 5.00%, 8/15/26 | 1,000,000 | 1,187,030 | ||||
South Orange County Public Financing Authority Special Tax, 5.00%, 8/15/27 | 1,155,000 | 1,387,178 | ||||
South Orange County Public Financing Authority Special Tax, 5.00%, 8/15/28 | 1,340,000 | 1,624,120 | ||||
Southern California Public Power Authority Rev., 5.00%, 7/1/20 | 4,000,000 | 4,255,880 | ||||
Southern California Public Power Authority Rev., 5.00%, 7/1/21 | 2,780,000 | 3,042,988 |
30
Principal Amount | Value | |||||
Southern California Public Power Authority Rev., 5.00%, 7/1/22 | $ | 2,875,000 | $ | 2,882,705 | ||
Southern California Public Power Authority Rev., VRDN, 1.81%, 9/6/18, resets weekly off the MUNIPSA plus 0.25% | 10,000,000 | 10,014,600 | ||||
Southern California Water Replenishment District Rev., 5.00%, 8/1/21 | 1,000,000 | 1,098,830 | ||||
State of California GO, 6.50%, 4/1/19, Prerefunded at 100% of Par(1) | 4,060,000 | 4,179,932 | ||||
State of California GO, 5.00%, 7/1/19(1) | 4,505,000 | 4,638,528 | ||||
State of California GO, 5.00%, 9/1/19 | 7,645,000 | 7,910,511 | ||||
State of California GO, 5.25%, 10/1/20 | 5,000,000 | 5,205,750 | ||||
State of California GO, 5.00%, 3/1/23 | 10,000,000 | 11,374,000 | ||||
State of California GO, 5.50%, 4/1/24 | 4,600,000 | 4,705,708 | ||||
State of California GO, 5.00%, 10/1/24 | 14,590,000 | 17,080,805 | ||||
State of California GO, 5.00%, 12/1/26 | 1,045,000 | 1,201,844 | ||||
State of California GO, 5.00%, 2/1/27 | 10,000,000 | 11,267,900 | ||||
State of California GO, 5.00%, 2/1/28 | 6,795,000 | 7,641,249 | ||||
State of California GO, 5.75%, 4/1/28 | 5,000,000 | 5,120,550 | ||||
State of California GO, 5.00%, 11/1/29 | 2,625,000 | 2,993,681 | ||||
State of California GO, 5.75%, 4/1/31 | 5,000,000 | 5,120,550 | ||||
State of California GO, 6.50%, 4/1/33 | 3,440,000 | 3,536,182 | ||||
State of California GO, 5.50%, 3/1/40 | 3,000,000 | 3,160,980 | ||||
State of California GO, VRDN, 2.16%, 9/4/18, resets monthly off 70% of the 1-month LIBOR plus 0.70% | 1,700,000 | 1,713,362 | ||||
State of California GO, VRDN, 2.22%, 9/4/18, resets monthly off 70% of the 1-month LIBOR plus 0.76% | 4,000,000 | 4,042,520 | ||||
State of California GO, VRDN, 4.00%, 12/1/21, resets off the remarketing agent | 4,000,000 | 4,251,760 | ||||
State of California GO, VRN, 2.56%, 9/6/18, resets weekly off the MUNIPSA plus 1.00% | 1,600,000 | 1,602,064 | ||||
State of California GO, VRN, 2.71%, 9/6/18, resets weekly off the MUNIPSA plus 1.15% | 1,920,000 | 1,940,448 | ||||
State of California Department of Water Resources Rev., 5.00%, 12/1/19, Prerefunded at 100% of Par(1) | 905,000 | 944,739 | ||||
State of California Department of Water Resources Power Supply Rev., 5.00%, 5/1/19 | 5,000,000 | 5,117,950 | ||||
State of California Department of Water Resources Power Supply Rev., 5.00%, 5/1/20, Prerefunded at 100% of Par(1) | 1,860,000 | 1,968,215 | ||||
State of California Department of Water Resources Power Supply Rev., 5.00%, 5/1/20 | 14,215,000 | 15,046,862 | ||||
State of California Department of Water Resources Power Supply Rev., 5.00%, 5/1/21 | 1,140,000 | 1,206,519 | ||||
State of California Department of Water Resources Power Supply Rev., 5.00%, 5/1/21 | 10,000,000 | 10,924,100 | ||||
State of California Department of Water Resources Power Supply Rev., 5.00%, 5/1/22 | 4,180,000 | 4,685,738 | ||||
Stockton Public Financing Authority Rev., 5.00%, 9/1/22 (BAM) | 1,410,000 | 1,580,032 | ||||
Stockton Public Financing Authority Rev., 5.00%, 9/1/23 (BAM) | 1,435,000 | 1,640,635 | ||||
Stockton Public Financing Authority Rev., 5.00%, 9/1/24 (BAM) | 1,090,000 | 1,266,351 | ||||
Stockton Public Financing Authority Rev., 5.00%, 9/1/25 (BAM) | 2,255,000 | 2,601,999 | ||||
Stockton Public Financing Authority Rev., 5.00%, 9/1/26 (BAM) | 1,495,000 | 1,719,624 | ||||
Stockton Public Financing Authority Rev., 5.00%, 9/1/27 (BAM) | 1,000,000 | 1,146,030 | ||||
Stockton Public Financing Authority Rev., 6.25%, 10/1/38 | 1,500,000 | 1,769,505 | ||||
Stockton Public Financing Authority Rev., 6.25%, 10/1/40 | 750,000 | 883,185 |
31
Principal Amount | Value | |||||
Stockton Public Financing Authority Special Tax, 4.00%, 9/2/20 (BAM) | $ | 575,000 | $ | 601,255 | ||
Stockton Public Financing Authority Special Tax, 4.00%, 9/2/21 (BAM) | 450,000 | 478,980 | ||||
Stockton Public Financing Authority Special Tax, 4.00%, 9/2/22 (BAM) | 940,000 | 1,015,162 | ||||
Stockton Public Financing Authority Special Tax, 4.00%, 9/2/23 (BAM) | 655,000 | 715,961 | ||||
Stockton Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/29 (AGM) | 1,500,000 | 1,738,245 | ||||
Stockton Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/30 (AGM) | 1,800,000 | 2,076,138 | ||||
Stockton Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/31 (AGM) | 1,825,000 | 2,096,542 | ||||
Stockton Unified School District GO, 5.00%, 8/1/30 | 8,165,000 | 9,453,274 | ||||
Temecula Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 12/15/28 (AGM) | 500,000 | 588,860 | ||||
Temecula Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 12/15/29 (AGM) | 1,155,000 | 1,355,115 | ||||
Temecula Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 12/15/31 (AGM) | 765,000 | 886,727 | ||||
Temecula Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 12/15/32 (AGM) | 750,000 | 866,063 | ||||
Temecula Valley Unified School District Financing Authority Special Tax, 5.00%, 9/1/18 (BAM) | 325,000 | 325,000 | ||||
Temecula Valley Unified School District Financing Authority Special Tax, 5.00%, 9/1/19 (BAM) | 265,000 | 272,719 | ||||
Temecula Valley Unified School District Financing Authority Special Tax, 5.00%, 9/1/20 (BAM) | 400,000 | 424,976 | ||||
Temecula Valley Unified School District Financing Authority Special Tax, 5.00%, 9/1/21 (BAM) | 515,000 | 560,547 | ||||
Temecula Valley Unified School District Financing Authority Special Tax, 5.00%, 9/1/22 (BAM) | 275,000 | 305,586 | ||||
Tobacco Securitization Authority of Southern California Rev., (San Diego County Tobacco Asset Securitization Corp.), 5.00%, 6/1/37 | 2,250,000 | 2,259,517 | ||||
Tobacco Securitization Authority of Southern California Rev., (San Diego County Tobacco Asset Securitization Corp.), 5.125%, 6/1/46 | 1,000,000 | 1,004,230 | ||||
Tracy Community Facilities District Special Tax, (Tracy Community Facilities District No. 2016-01), 5.00%, 9/1/28 | 425,000 | 477,339 | ||||
Tracy Community Facilities District Special Tax, (Tracy Community Facilities District No. 2016-01), 5.00%, 9/1/33 | 1,610,000 | 1,772,079 | ||||
Tracy Community Facilities District Special Tax, (Tracy Community Facilities District No. 2016-01), 5.00%, 9/1/38 | 1,635,000 | 1,779,420 | ||||
Tuolumne Wind Project Authority Rev., 5.625%, 1/1/19, Prerefunded at 100% of Par(1) | 2,200,000 | 2,229,942 | ||||
Tustin Community Facilities District Special Tax, 5.00%, 9/1/22 | 480,000 | 535,531 | ||||
Tustin Community Facilities District Special Tax, 5.00%, 9/1/23 | 725,000 | 825,565 | ||||
Tustin Community Facilities District Special Tax, 5.00%, 9/1/28 | 1,000,000 | 1,137,410 | ||||
Tustin Community Facilities District Special Tax, 5.00%, 9/1/30 | 1,000,000 | 1,130,630 | ||||
Tustin Unified School District Special Tax, 6.00%, 9/1/20, Prerefunded at 100% of Par(1) | 2,000,000 | 2,172,400 | ||||
University of California Rev., 5.25%, 5/15/19, Prerefunded at 100% of Par(1) | 2,210,000 | 2,269,007 | ||||
University of California Rev., 5.25%, 5/15/19, Prerefunded at 100% of Par(1) | 4,285,000 | 4,400,952 | ||||
University of California Rev., 5.25%, 5/15/19, Prerefunded at 100% of Par(1) | 1,255,000 | 1,288,509 |
32
Principal Amount | Value | |||||
University of California Rev., 5.00%, 5/15/20 | $ | 1,405,000 | $ | 1,422,619 | ||
University of California Rev., 5.00%, 5/15/22, Prerefunded at 100% of Par(1) | 2,840,000 | 3,173,075 | ||||
University of California Rev., 5.00%, 5/15/23, Prerefunded at 100% of Par(1) | 1,395,000 | 1,598,433 | ||||
University of California Rev., 5.00%, 5/15/25 | 6,855,000 | 7,831,426 | ||||
University of California Rev., 4.00%, 5/15/26 | 2,415,000 | 2,726,559 | ||||
University of California Rev., 5.00%, 5/15/26 | 11,300,000 | 13,343,944 | ||||
University of California Rev., 5.00%, 5/15/26 | 3,310,000 | 3,683,103 | ||||
University of California Rev., VRDN, 1.40%, 5/15/21, resets off the remarketing agent | 1,650,000 | 1,622,857 | ||||
University of California Rev., VRDN, 5.00%, 5/15/23, resets off the remarketing agent | 9,935,000 | 11,359,778 | ||||
University of California Hastings College of the Law Rev., 5.00%, 4/1/31 (AGM) | 1,045,000 | 1,226,067 | ||||
Upland COP, 5.00%, 1/1/29 | 1,510,000 | 1,717,081 | ||||
Upland COP, 5.00%, 1/1/32 | 1,475,000 | 1,654,611 | ||||
Upland COP, 4.00%, 1/1/36 | 1,000,000 | 1,018,680 | ||||
Upper Santa Clara Valley Joint Powers Authority Rev., 4.00%, 8/1/19 | 600,000 | 614,532 | ||||
Washington Township Health Care District Rev., 5.00%, 7/1/29 | 600,000 | 677,496 | ||||
Washington Township Health Care District Rev., 3.50%, 7/1/30 | 760,000 | 745,522 | ||||
Washington Township Health Care District Rev., 5.00%, 7/1/30 | 1,200,000 | 1,349,124 | ||||
Washington Township Health Care District Rev., 3.75%, 7/1/31 | 400,000 | 399,580 | ||||
Washington Township Health Care District Rev., 4.00%, 7/1/32 | 135,000 | 137,103 | ||||
Washington Township Health Care District Rev., 5.00%, 7/1/35 | 990,000 | 1,094,702 | ||||
Washington Township Health Care District Rev., 4.00%, 7/1/36 | 200,000 | 200,878 | ||||
Washington Township Health Care District Rev., 4.00%, 7/1/37 | 200,000 | 200,434 | ||||
Washington Township Health Care District Rev., 4.00%, 7/1/37 | 1,000,000 | 1,002,170 | ||||
Washington Township Health Care District Rev., 5.00%, 7/1/42 | 1,000,000 | 1,091,530 | ||||
West Contra Costa Unified School District GO, 5.00%, 8/1/30 | 2,000,000 | 2,290,620 | ||||
West Contra Costa Unified School District GO, 5.00%, 8/1/33 | 3,000,000 | 3,419,940 | ||||
West Contra Costa Unified School District GO, 5.00%, 8/1/35 | 1,500,000 | 1,702,905 | ||||
West Sacramento Financing Authority Special Tax, 5.00%, 9/1/18 (XLCA) | 1,490,000 | 1,490,000 | ||||
West Sacramento Financing Authority Special Tax, 5.00%, 9/1/19 (XLCA) | 995,000 | 1,026,163 | ||||
West Sacramento Financing Authority Special Tax, 5.00%, 9/1/20 (XLCA) | 1,195,000 | 1,263,593 | ||||
Western Riverside Water & Wastewater Financing Authority Rev., 5.00%, 9/1/24 | 1,690,000 | 1,933,749 | ||||
Western Riverside Water & Wastewater Financing Authority Rev., 5.00%, 9/1/25 | 1,170,000 | 1,351,631 | ||||
1,695,114,443 | ||||||
Guam — 0.4% | ||||||
Guam Government GO, 6.00%, 11/15/19 | 435,000 | 443,996 | ||||
Guam Government Power Authority Rev., 5.00%, 10/1/19 (AGM) | 1,000,000 | 1,032,300 | ||||
Guam Government Power Authority Rev., 5.50%, 10/1/20, Prerefunded at 100% of Par(1) | 2,150,000 | 2,311,529 | ||||
Guam Government Waterworks Authority Rev., 5.00%, 7/1/21 | 300,000 | 321,747 | ||||
Guam Government Waterworks Authority Rev., 5.00%, 7/1/22 | 325,000 | 355,550 | ||||
Guam Government Waterworks Authority Rev., 5.00%, 7/1/23 | 500,000 | 555,235 |
33
Principal Amount | Value | |||||
Guam Government Waterworks Authority Rev., 5.00%, 7/1/24 | $ | 350,000 | $ | 393,089 | ||
Guam Government Waterworks Authority Rev., 5.00%, 7/1/25 | 350,000 | 395,878 | ||||
Guam Government Waterworks Authority Rev., 5.00%, 7/1/26 | 500,000 | 569,240 | ||||
Guam Government Waterworks Authority Rev., 5.00%, 7/1/27 | 900,000 | 1,029,573 | ||||
7,408,137 | ||||||
TOTAL INVESTMENT SECURITIES — 99.2% (Cost $1,646,341,197) | 1,702,522,580 | |||||
OTHER ASSETS AND LIABILITIES — 0.8% | 12,945,858 | |||||
TOTAL NET ASSETS — 100.0% | $ | 1,715,468,438 |
FUTURES CONTRACTS SOLD | |||||||||||
Reference Entity | Contracts | Expiration Date | Notional Amount | Underlying Contract Value | Unrealized Appreciation (Depreciation) | ||||||
U.S. Treasury Long Bonds | 234 | December 2018 | $ | 23,400,000 | $ | 33,747,188 | $ | 43,349 |
NOTES TO SCHEDULE OF INVESTMENTS | ||
AGC | - | Assured Guaranty Corporation |
AGM | - | Assured Guaranty Municipal Corporation |
BAM | - | Build America Mutual Assurance Company |
COP | - | Certificates of Participation |
GA | - | Guaranty Agreement |
GO | - | General Obligation |
LIBOR | - | London Interbank Offered Rate |
LOC | - | Letter of Credit |
MUNIPSA | - | SIFMA Municipal Swap Index |
NATL | - | National Public Finance Guarantee Corporation |
resets | - | The frequency with which a security's coupon changes, based on current market conditions or an underlying index. |
VRDN | - | Variable Rate Demand Note. Interest reset date is indicated. Rate shown is effective at the period end. |
VRN | - | Variable Rate Note. Interest reset date is indicated. Rate shown is effective at the period end. |
XLCA | - | XL Capital Ltd. |
(1) | Escrowed to maturity in U.S. government securities or state and local government securities. |
(2) | Security is a zero-coupon bond. Zero-coupon securities are issued at a substantial discount from their value at maturity. |
(3) | Coupon rate adjusts periodically based upon a predetermined schedule. Interest reset date is indicated. Rate shown is effective at the period end. |
(4) | Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration, normally to qualified institutional investors. The aggregate value of these securities at the period end was $26,015,276, which represented 1.5% of total net assets. |
(5) | When-issued security. The issue price and yield are fixed on the date of the commitment, but payment and delivery are scheduled for a future date. |
See Notes to Financial Statements.
34
Statement of Assets and Liabilities |
AUGUST 31, 2018 | |||
Assets | |||
Investment securities, at value (cost of $1,646,341,197) | $ | 1,702,522,580 | |
Deposits with broker for futures contracts | 552,150 | ||
Receivable for investments sold | 2,727,034 | ||
Receivable for capital shares sold | 1,064,113 | ||
Interest receivable | 19,616,138 | ||
1,726,482,015 | |||
Liabilities | |||
Disbursements in excess of demand deposit cash | 392,555 | ||
Payable for investments purchased | 7,127,708 | ||
Payable for capital shares redeemed | 2,112,845 | ||
Payable for variation margin on futures contracts | 31,953 | ||
Accrued management fees | 591,656 | ||
Distribution and service fees payable | 18,836 | ||
Dividends payable | 738,024 | ||
11,013,577 | |||
Net Assets | $ | 1,715,468,438 | |
Net Assets Consist of: | |||
Capital paid in | $ | 1,658,379,578 | |
Distributions in excess of net investment income | (385,836 | ) | |
Undistributed net realized gain | 1,249,964 | ||
Net unrealized appreciation | 56,224,732 | ||
$ | 1,715,468,438 |
Net Assets | Shares Outstanding | Net Asset Value Per Share | ||||
Investor Class | $1,143,719,158 | 97,796,902 | $11.69 | |||
I Class | $527,122,527 | 45,064,841 | $11.70 | |||
Y Class | $6,889,319 | 589,049 | $11.70 | |||
A Class | $21,438,474 | 1,832,390 | $11.70* | |||
C Class | $16,298,960 | 1,392,549 | $11.70 |
*Maximum offering price $12.25 (net asset value divided by 0.955).
See Notes to Financial Statements.
35
Statement of Operations |
YEAR ENDED AUGUST 31, 2018 | |||
Investment Income (Loss) | |||
Income: | |||
Interest | $ | 54,603,209 | |
Expenses: | |||
Management fees | 7,431,110 | ||
Distribution and service fees: | |||
A Class | 59,351 | ||
C Class | 177,255 | ||
Trustees' fees and expenses | 111,425 | ||
Other expenses | 1,260 | ||
7,780,401 | |||
Net investment income (loss) | 46,822,808 | ||
Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on: | |||
Investment transactions | 6,862,756 | ||
Futures contract transactions | (273,417 | ) | |
6,589,339 | |||
Change in net unrealized appreciation (depreciation) on: | |||
Investments | (53,967,745 | ) | |
Futures contracts | 43,349 | ||
(53,924,396 | ) | ||
Net realized and unrealized gain (loss) | (47,335,057 | ) | |
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (512,249 | ) |
See Notes to Financial Statements.
36
Statement of Changes in Net Assets |
YEARS ENDED AUGUST 31, 2018 AND AUGUST 31, 2017 | ||||||
Increase (Decrease) in Net Assets | August 31, 2018 | August 31, 2017 | ||||
Operations | ||||||
Net investment income (loss) | $ | 46,822,808 | $ | 39,501,225 | ||
Net realized gain (loss) | 6,589,339 | (1,951,039 | ) | |||
Change in net unrealized appreciation (depreciation) | (53,924,396 | ) | (32,683,299 | ) | ||
Net increase (decrease) in net assets resulting from operations | (512,249 | ) | 4,866,887 | |||
Distributions to Shareholders | ||||||
From net investment income: | ||||||
Investor Class | (34,169,152 | ) | (30,211,078 | ) | ||
I Class | (12,012,100 | ) | (8,221,972 | ) | ||
Y Class | (194,186 | ) | (20,623 | ) | ||
A Class | (552,479 | ) | (782,915 | ) | ||
C Class | (278,809 | ) | (264,637 | ) | ||
Decrease in net assets from distributions | (47,206,726 | ) | (39,501,225 | ) | ||
Capital Share Transactions | ||||||
Net increase (decrease) in net assets from capital share transactions (Note 5) | 142,225,369 | (12,348,127 | ) | |||
Net increase (decrease) in net assets | 94,506,394 | (46,982,465 | ) | |||
Net Assets | ||||||
Beginning of period | 1,620,962,044 | 1,667,944,509 | ||||
End of period | $ | 1,715,468,438 | $ | 1,620,962,044 | ||
Distributions in excess of net investment income | $ | (385,836 | ) | $ | (1,918 | ) |
See Notes to Financial Statements.
37
Notes to Financial Statements |
AUGUST 31, 2018
1. Organization
American Century California Tax-Free and Municipal Funds (the trust) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company and is organized as a Massachusetts business trust. California Intermediate-Term Tax-Free Bond Fund (the fund) is one fund in a series issued by the trust. The fund’s investment objective is to seek safety of principal and high current income that is exempt from federal and California income taxes.
The fund offers the Investor Class, I Class, Y Class, A Class and C Class. The A Class may incur an initial sales charge. The A Class and C Class may be subject to a contingent deferred sales charge. Sale of the Y Class commenced on April 10, 2017.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently followed by the fund in preparation of its financial statements. The fund is an investment company and follows accounting and reporting guidance in accordance with accounting principles generally accepted in the United States of America. This may require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from these estimates. Management evaluated the impact of events or transactions occurring through the date the financial statements were issued that would merit recognition or disclosure.
Investment Valuations — The fund determines the fair value of its investments and computes its net asset value per share at the close of regular trading (usually 4 p.m. Eastern time) on the New York Stock Exchange (NYSE) on each day the NYSE is open. The Board of Trustees has adopted valuation policies and procedures to guide the investment advisor in the fund’s investment valuation process and to provide methodologies for the oversight of the fund’s pricing function.
Fixed income securities are valued at the evaluated mean as provided by independent pricing services or at the mean of the most recent bid and asked prices as provided by investment dealers. Municipal securities are valued using market models that consider trade data, quotations from dealers and active market makers, relevant yield curve and spread data, creditworthiness, trade data or market information on comparable securities, and other relevant security specific information.
Exchange-traded futures contracts are valued at the settlement price as provided by the appropriate exchange.
If the fund determines that the market price for an investment is not readily available or the valuation methods mentioned above do not reflect an investment’s fair value, such investment is valued as determined in good faith by the Board of Trustees or its delegate, in accordance with policies and procedures adopted by the Board of Trustees. In its determination of fair value, the fund may review several factors including, but not limited to, market information regarding the specific investment or comparable investments and correlation with other investment types, futures indices or general market indicators. Circumstances that may cause the fund to use these procedures to value an investment include, but are not limited to: an investment has been declared in default or is distressed; trading in a security has been suspended during the trading day or a security is not actively trading on its principal exchange; prices received from a regular pricing source are deemed unreliable; or there is a foreign market holiday and no trading occurred.
The fund monitors for significant events occurring after the close of an investment’s primary exchange but before the fund’s net asset value per share is determined. Significant events may include, but are not limited to: corporate announcements and transactions; governmental action and political unrest that could impact a specific investment or an investment sector; or armed conflicts, natural disasters and similar events that could affect investments in a specific country or region.
Security Transactions — Security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes.
38
Investment Income — Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums.
Segregated Assets — In accordance with the 1940 Act, the fund segregates assets on its books and records to cover certain types of investments securities and other financial instruments. American Century Investment Management, Inc. (ACIM) (the investment advisor) monitors, on a daily basis, the securities segregated to ensure the fund designates a sufficient amount of liquid assets, marked-to-market daily. The fund may also receive assets or be required to pledge assets at the custodian bank or with a broker for collateral requirements.
Income Tax Status — It is the fund’s policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Multiple Class — All shares of the fund represent an equal pro rata interest in the net assets of the class to which such shares belong, and have identical voting, dividend, liquidation and other rights and the same terms and conditions, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. Income, non-class specific expenses, and realized and unrealized capital gains and losses of the fund are allocated to each class of shares based on their relative net assets.
Distributions to Shareholders — Distributions from net investment income, if any, are declared daily and paid monthly. Distributions from net realized gains, if any, are generally declared and paid annually.
Indemnifications — Under the trust’s organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
3. Fees and Transactions with Related Parties
Certain officers and trustees of the trust are also officers and/or directors of American Century Companies, Inc. (ACC). The trust's investment advisor, ACIM, the trust's distributor, American Century Investment Services, Inc. (ACIS), and the trust's transfer agent, American Century Services, LLC, are wholly owned, directly or indirectly, by ACC.
Management Fees — The trust has entered into a management agreement with ACIM, under which ACIM provides the fund with investment advisory and management services in exchange for a single, unified management fee (the fee) per class. The agreement provides that all expenses of managing and operating the fund, except distribution and service fees, brokerage expenses, taxes, interest, fees and expenses of the independent trustees (including legal counsel fees), and extraordinary expenses, will be paid by ACIM. The fee is computed and accrued daily based on each class's daily net assets and paid monthly in arrears. The difference in the fee among the classes is a result of their separate arrangements for non-Rule 12b-1 shareholder services. It is not the result of any difference in advisory or custodial fees or other expenses related to the management of the fund’s assets, which do not vary by class. The fee consists of (1) an Investment Category Fee based on the daily net assets of the fund and certain other accounts managed by the investment advisor that are in the same broad investment category as the fund and (2) a Complex Fee based on the assets of all the funds in the American Century Investments family of funds.
39
The Investment Category Fee range, the Complex Fee range and the effective annual management fee for each class for the period ended August 31, 2018 are as follows:
Investment Category Fee Range | Complex Fee Range | Effective Annual Management Fee | |
Investor Class | 0.1625% to 0.2800% | 0.2500% to 0.3100% | 0.46% |
I Class | 0.0500% to 0.1100% | 0.26% | |
Y Class | 0.0200% to 0.0800% | 0.23% | |
A Class | 0.2500% to 0.3100% | 0.46% | |
C Class | 0.2500% to 0.3100% | 0.46% |
Distribution and Service Fees — The Board of Trustees has adopted a separate Master Distribution and Individual Shareholder Services Plan for each of the A Class and C Class (collectively the plans), pursuant to Rule 12b-1 of the 1940 Act. The plans provide that the A Class will pay ACIS an annual distribution and service fee of 0.25%. The plans provide that the C Class will pay ACIS an annual distribution and service fee of 1.00%, of which 0.25% is paid for individual shareholder services and 0.75% is paid for distribution services. The fees are computed and accrued daily based on each class’s daily net assets and paid monthly in arrears. The fees are used to pay financial intermediaries for distribution and individual shareholder services. Fees incurred under the plans during the period ended August 31, 2018 are detailed in the Statement of Operations.
Trustees’ Fees and Expenses — The Board of Trustees is responsible for overseeing the investment advisor’s management and operations of the fund. The trustees receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Trustees. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. During the period, the interfund purchases and sales were $66,707,992 and $51,365,000, respectively. The interfund transactions had no effect on the Statement of Operations in net realized gain (loss) on investment transactions.
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments, for the period ended August 31, 2018 were $929,737,115 and $1,093,155,215, respectively.
40
5. Capital Share Transactions
Transactions in shares of the fund were as follows (unlimited number of shares authorized):
Year ended August 31, 2018 | Year ended August 31, 2017(1) | |||||||||
Shares | Amount | Shares | Amount | |||||||
Investor Class | ||||||||||
Sold | 15,879,082 | $ | 187,195,893 | 28,555,756 | $ | 337,178,944 | ||||
Issued in connection with reorganization (Note 10) | 25,334,051 | 302,675,343 | – | – | ||||||
Issued in reinvestment of distributions | 2,195,740 | 25,818,804 | 1,894,579 | 22,430,340 | ||||||
Redeemed | (45,318,617 | ) | (532,702,402 | ) | (37,128,247 | ) | (437,782,909 | ) | ||
(1,909,744 | ) | (17,012,362 | ) | (6,677,912 | ) | (78,173,625 | ) | |||
I Class | ||||||||||
Sold | 28,096,338 | 330,499,136 | 16,257,663 | 192,865,962 | ||||||
Issued in connection with reorganization (Note 10) | 443,483 | 5,297,825 | – | – | ||||||
Issued in reinvestment of distributions | 946,228 | 11,124,177 | 676,414 | 8,010,731 | ||||||
Redeemed | (15,944,536 | ) | (187,593,061 | ) | (9,761,771 | ) | (114,578,900 | ) | ||
13,541,513 | 159,328,077 | 7,172,306 | 86,297,793 | |||||||
Y Class | ||||||||||
Sold | 271,037 | 3,197,701 | 525,409 | 6,241,732 | ||||||
Issued in reinvestment of distributions | 16,518 | 194,165 | 1,723 | 20,623 | ||||||
Redeemed | (217,915 | ) | (2,558,868 | ) | (7,723 | ) | (92,347 | ) | ||
69,640 | 832,998 | 519,409 | 6,170,008 | |||||||
A Class | ||||||||||
Sold | 442,136 | 5,196,744 | 375,434 | 4,424,578 | ||||||
Issued in connection with reorganization (Note 10) | 534,573 | 6,390,877 | – | – | ||||||
Issued in reinvestment of distributions | 45,522 | 535,485 | 57,669 | 682,383 | ||||||
Redeemed | (1,092,405 | ) | (12,888,216 | ) | (2,381,374 | ) | (28,086,003 | ) | ||
(70,174 | ) | (765,110 | ) | (1,948,271 | ) | (22,979,042 | ) | |||
C Class | ||||||||||
Sold | 65,745 | 776,974 | 234,957 | 2,795,555 | ||||||
Issued in connection with reorganization (Note 10) | 304,020 | 3,635,324 | – | – | ||||||
Issued in reinvestment of distributions | 20,136 | 236,967 | 18,957 | 224,556 | ||||||
Redeemed | (407,132 | ) | (4,807,499 | ) | (564,016 | ) | (6,683,372 | ) | ||
(17,231 | ) | (158,234 | ) | (310,102 | ) | (3,663,261 | ) | |||
Net increase (decrease) | 11,614,004 | $ | 142,225,369 | (1,244,570 | ) | $ | (12,348,127 | ) |
(1) | April 10, 2017 (commencement of sale) through August 31, 2017 for the Y Class. |
6. Fair Value Measurements
The fund’s investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.
• | Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments. |
• | Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars. |
• | Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions). |
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The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments.
As of period end, the fund’s investment securities and unrealized appreciation (depreciation) on futures contracts were classified as Level 2 and Level 1, respectively. The Schedule of Investments provides additional information on the fund’s portfolio holdings.
7. Derivative Instruments
Interest Rate Risk — The fund is subject to interest rate risk in the normal course of pursuing its investment objectives. The value of bonds generally declines as interest rates rise. A fund may enter into futures contracts based on a bond index or a specific underlying security. A fund may purchase futures contracts to gain exposure to increases in market value or sell futures contracts to protect against a decline in market value. Upon entering into a futures contract, a fund will segregate cash, cash equivalents or other appropriate liquid securities on its records in amounts sufficient to meet requirements. Subsequent payments (variation margin) are made or received daily, in cash, by a fund. The variation margin is equal to the daily change in the contract value and is recorded as unrealized gains and losses. A fund recognizes a realized gain or loss when the futures contract is closed or expires. Net realized and unrealized gains or losses occurring during the holding period of futures contracts are a component of net realized gain (loss) on futures contract transactions and change in net unrealized appreciation (depreciation) on futures contracts, respectively. One of the risks of entering into futures contracts is the possibility that the change in value of the contract may not correlate with the changes in value of the underlying securities. The fund's average notional exposure to these interest rate risk derivative instruments held during the period was $24,100,000 futures contracts sold.
The value of interest rate risk derivative instruments as of August 31, 2018, is disclosed on the Statement of Assets and Liabilities as a liability of $31,953 in payable for variation margin on futures contracts.* For the year ended August 31, 2018, the effect of interest rate risk derivative instruments on the Statement of Operations was $(273,417) in net realized gain (loss) on futures contract transactions and $43,349 in change in net unrealized appreciation (depreciation) on futures contracts.
* Included in the unrealized appreciation (depreciation) on futures contracts as reported in the Schedule of Investments.
8. Risk Factors
The fund focuses its investments in a single state and therefore may have more exposure to credit risk related to the state of California than a fund with a broader geographical diversification.
9. Federal Tax Information
The tax character of distributions paid during the years ended August 31, 2018 and August 31, 2017 were as follows:
2018 | 2017 | |||||
Distributions Paid From | ||||||
Exempt income | $ | 47,206,726 | $ | 39,501,225 | ||
Long-term capital gains | — | — |
The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
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As of period end, the federal tax cost of investments and the components of distributable earnings on a tax-basis were as follows:
Federal tax cost of investments | $ | 1,646,341,197 | |
Gross tax appreciation of investments | $ | 59,544,127 | |
Gross tax depreciation of investments | (3,362,744 | ) | |
Net tax appreciation (depreciation) of investments | $ | 56,181,383 | |
Other book-to-tax adjustments | $ | (385,836 | ) |
Undistributed exempt income | — | ||
Accumulated long-term gains | $ | 1,293,313 |
The cost of investments for federal income tax purposes was the same as the cost for financial reporting purposes. The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the realization for tax purposes of unrealized gains (losses) on futures contracts.
10. Reorganization
On June 14, 2017, the Board of Trustees approved an agreement and plan of reorganization (the reorganization), whereby the net assets of California Long-Term Tax-Free Fund, one fund in a series issued by the trust, were transferred to California Intermediate-Term Tax-Free Bond Fund in exchange for shares of California Intermediate-Term Tax-Free Bond Fund. The purpose of the transaction was to combine two funds with substantially similar investment objectives and strategies. The financial statements and performance history of California Intermediate-Term Tax-Free Bond Fund survived after the reorganization. The reorganization was effective at the close of the NYSE on October 20, 2017.
The reorganization was accomplished by a tax-free exchange of shares. On October 20, 2017, California Long-Term Tax-Free Fund exchanged its shares for shares of California Intermediate-Term Tax-Free Bond Fund as follows:
Original Fund/Class | Shares Exchanged | New Fund/Class | Shares Received | ||
California Long-Term Tax-Free Fund – Investor Class | 26,325,383 | California Intermediate-Term Tax-Free Bond Fund – Investor Class | 25,334,051 | ||
California Long-Term Tax-Free Fund – I Class | 460,837 | California Intermediate-Term Tax-Free Bond Fund – I Class | 443,483 | ||
California Long-Term Tax-Free Fund – A Class | 555,974 | California Intermediate-Term Tax-Free Bond Fund – A Class | 534,573 | ||
California Long-Term Tax-Free Fund – C Class | 316,180 | California Intermediate-Term Tax-Free Bond Fund – C Class | 304,020 |
The net assets of California Long-Term Tax-Free Fund and California Intermediate-Term Tax-Free Bond Fund immediately before the reorganization were $317,999,369 and $1,626,564,192, respectively. California Long-Term Tax-Free Fund's unrealized appreciation of $24,755,277 was combined with that of California Intermediate-Term Tax-Free Bond Fund. Immediately after the reorganization, the combined net assets were $1,944,563,561.
Assuming the reorganization had been completed on September 1, 2017, the beginning of the annual reporting period, the pro forma results of operations for the period ended August 31, 2018 are as follows:
Net investment income (loss) | $ | 48,264,905 | |
Net realized and unrealized gain (loss) | (48,113,885 | ) | |
Net decrease in net assets resulting from operations | $ | 151,020 |
Because the combined investment portfolios have been managed as a single integrated portfolio since the reorganization was completed, it is not practicable to separate the amounts of revenue and earnings of California Long-Term Tax-Free Fund that have been included in the fund’s Statement of Operations since October 20, 2017.
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11. Recently Issued Accounting Standards
In March 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2017-08, “Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities” (ASU 2017-08). ASU 2017-08 amends the amortization period for certain purchased callable debt securities held at a premium, shortening such period to the earliest call date. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Management is currently evaluating the impact that adopting ASU 2017-08 will have on the financial statements.
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Financial Highlights |
For a Share Outstanding Throughout the Years Ended August 31 (except as noted) | |||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||
Income From Investment Operations: | Ratio to Average Net Assets of: | ||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Distributions From Net Investment Income | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
Investor Class | |||||||||||||
2018 | $12.00 | 0.30 | (0.31) | (0.01) | (0.30) | $11.69 | 0.03% | 0.47% | 2.56% | 52% | $1,143,719 | ||
2017 | $12.24 | 0.29 | (0.24) | 0.05 | (0.29) | $12.00 | 0.46% | 0.47% | 2.43% | 52% | $1,196,600 | ||
2016 | $11.85 | 0.28 | 0.39 | 0.67 | (0.28) | $12.24 | 5.74% | 0.47% | 2.34% | 23% | $1,301,751 | ||
2015 | $11.94 | 0.29 | (0.09) | 0.20 | (0.29) | $11.85 | 1.68% | 0.47% | 2.42% | 30% | $1,216,943 | ||
2014 | $11.36 | 0.29 | 0.58 | 0.87 | (0.29) | $11.94 | 7.68% | 0.47% | 2.52% | 52% | $1,064,224 | ||
I Class | |||||||||||||
2018 | $12.00 | 0.32 | (0.29) | 0.03 | (0.33) | $11.70 | 0.23% | 0.27% | 2.76% | 52% | $527,123 | ||
2017 | $12.24 | 0.31 | (0.24) | 0.07 | (0.31) | $12.00 | 0.66% | 0.27% | 2.63% | 52% | $378,363 | ||
2016 | $11.85 | 0.31 | 0.39 | 0.70 | (0.31) | $12.24 | 5.95% | 0.27% | 2.54% | 23% | $298,010 | ||
2015 | $11.94 | 0.31 | (0.09) | 0.22 | (0.31) | $11.85 | 1.88% | 0.27% | 2.62% | 30% | $232,892 | ||
2014 | $11.37 | 0.32 | 0.57 | 0.89 | (0.32) | $11.94 | 7.90% | 0.27% | 2.72% | 52% | $207,978 | ||
Y Class | |||||||||||||
2018 | $12.00 | 0.33 | (0.30) | 0.03 | (0.33) | $11.70 | 0.26% | 0.24% | 2.79% | 52% | $6,889 | ||
2017(4) | $11.78 | 0.12 | 0.23 | 0.35 | (0.13) | $12.00 | 2.94% | 0.24%(5) | 2.62%(5) | 52%(3) | $6,233 |
For a Share Outstanding Throughout the Years Ended August 31 (except as noted) | |||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||
Income From Investment Operations: | Ratio to Average Net Assets of: | ||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Distributions From Net Investment Income | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate | Net Assets, End of Period (in thousands) | |||
A Class | |||||||||||||
2018 | $12.00 | 0.27 | (0.30) | (0.03) | (0.27) | $11.70 | (0.22)% | 0.72% | 2.31% | 52% | $21,438 | ||
2017 | $12.24 | 0.26 | (0.24) | 0.02 | (0.26) | $12.00 | 0.21% | 0.72% | 2.18% | 52% | $22,836 | ||
2016 | $11.85 | 0.25 | 0.39 | 0.64 | (0.25) | $12.24 | 5.47% | 0.72% | 2.09% | 23% | $47,126 | ||
2015 | $11.94 | 0.26 | (0.09) | 0.17 | (0.26) | $11.85 | 1.42% | 0.72% | 2.17% | 30% | $39,308 | ||
2014 | $11.37 | 0.27 | 0.57 | 0.84 | (0.27) | $11.94 | 7.41% | 0.72% | 2.27% | 52% | $32,899 | ||
C Class | |||||||||||||
2018 | $12.01 | 0.18 | (0.31) | (0.13) | (0.18) | $11.70 | (0.96)% | 1.47% | 1.56% | 52% | $16,299 | ||
2017 | $12.24 | 0.17 | (0.23) | (0.06) | (0.17) | $12.01 | (0.46)% | 1.47% | 1.43% | 52% | $16,929 | ||
2016 | $11.86 | 0.16 | 0.38 | 0.54 | (0.16) | $12.24 | 4.60% | 1.47% | 1.34% | 23% | $21,058 | ||
2015 | $11.95 | 0.17 | (0.09) | 0.08 | (0.17) | $11.86 | 0.67% | 1.47% | 1.42% | 30% | $16,531 | ||
2014 | $11.37 | 0.18 | 0.58 | 0.76 | (0.18) | $11.95 | 6.71% | 1.47% | 1.52% | 52% | $17,738 |
Notes to Financial Highlights |
(1) | Computed using average shares outstanding throughout the period. |
(2) | Total returns are calculated based on the net asset value of the last business day and do not reflect applicable sales charges, if any. Total returns for periods less than one year are not annualized. |
(3) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended August 31, 2017. |
(4) | April 10, 2017 (commencement of sale) through August 31, 2017. |
(5) | Annualized. |
See Notes to Financial Statements.
Report of Independent Registered Public Accounting Firm |
To the Board of Trustees of American Century California Tax-Free and Municipal Funds and Shareholders of California Intermediate-Term Tax-Free Bond Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of California Intermediate-Term Tax-Free Bond Fund (one of the funds constituting American Century California Tax-Free and Municipal Funds, referred to hereafter as the "Fund") as of August 31, 2018, the related statement of operations for the year ended August 31, 2018, the statement of changes in net assets for each of the two years in the period ended August 31, 2018, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of August 31, 2018, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended August 31, 2018 and the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of August 31, 2018 by correspondence with the custodian and brokers. We believe that our audits provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
Kansas City, Missouri
October 17, 2018
We have served as the auditor of one or more investment companies in American Century Investments since 1997.
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Management |
Board of Trustees
The individuals listed below serve as trustees of the funds. Each trustee will continue to serve in this capacity until death, retirement, resignation or removal from office. The board has adopted a mandatory retirement age for trustees who are not “interested persons,” as that term is defined in the Investment Company Act (independent trustees). Independent trustees shall retire on December 31 of the year in which they reach their 75th birthday; provided, however, that on or after January 1, 2022, independent trustees shall retire on December 31 of the year in which they reach their 76th birthday.
Mr. Thomas is an “interested person” because he currently serves as President and Chief Executive Officer of American Century Companies, Inc. (ACC), the parent company of American Century Investment Management, Inc. (ACIM or the advisor). The other trustees (more than threefourths of the total number) are independent. They are not employees, directors or officers of, and have no financial interest in, ACC or any of its wholly owned, direct or indirect, subsidiaries, including ACIM, American Century Investment Services, Inc. (ACIS) and American Century Services, LLC (ACS), and they do not have any other affiliations, positions or relationships that would cause them to be considered “interested persons” under the Investment Company Act. The trustees serve in this capacity for eight (in the case of Jonathan S. Thomas, 16; and Ronald J. Gilson, 9) registered investment companies in the American Century Investments family of funds.
The following table presents additional information about the trustees. The mailing address for each trustee other than Mr. Thomas is 1665 Charleston Road, Mountain View, California 94043. The mailing address for Mr. Thomas is 4500 Main Street, Kansas City, Missouri 64111.
Name (Year of Birth) | Position(s) Held with Funds | Length of Time Served | Principal Occupation(s) During Past 5 Years | Number of American Century Portfolios Overseen by Trustee | Other Directorships Held During Past 5 Years |
Independent Trustees | |||||
Tanya S. Beder (1955) | Trustee | Since 2011 | Chairman and CEO, SBCC Group Inc. (independent advisory services) (2006 to present) | 45 | CYS Investments, Inc.; Nabors Industries Ltd. |
Jeremy I. Bulow (1954) | Trustee | Since 2011 | Professor of Economics, Stanford University, Graduate School of Business (1979 to present) | 45 | None |
Anne Casscells (1958) | Trustee | Since 2016 | Co-Chief Executive Officer and Chief Investment Officer, Aetos Alternatives Management (investment advisory firm) (2001 to present); Lecturer in Accounting, Stanford University, Graduate School of Business (2009 to present) | 45 | None |
Ronald J. Gilson (1946) | Trustee and Chairman of the Board | Since 1995 (Chairman since 2005) | Charles J. Meyers Professor of Law and Business, Emeritus, Stanford Law School (1979 to 2016); Marc and Eva Stern Professor of Law and Business, Columbia University School of Law (1992 to present) | 50 | None |
48
Name (Year of Birth) | Position(s) Held with Funds | Length of Time Served | Principal Occupation(s) During Past 5 Years | Number of American Century Portfolios Overseen by Trustee | Other Directorships Held During Past 5 Years |
Independent Trustees | |||||
Frederick L. A. Grauer (1946) | Trustee | Since 2008 | Senior Advisor, iShares by BlackRock, Inc. (investment management firm) (2010 to 2011, 2013 to 2015); Senior Advisor, Course Hero (an educational technology company) (2015 to present) | 45 | None |
Jonathan D. Levin (1972) | Trustee | Since 2016 | Philip H. Knight Professor and Dean, Graduate School of Business, Stanford University (2016 to present); Professor, Stanford University, (2000 to present); Chair, Department of Economics, Stanford University (2011 to 2014) | 45 | None |
Peter F. Pervere (1947) | Trustee | Since 2007 | Retired | 45 | None |
John B. Shoven (1947) | Trustee | Since 2002 | Charles R. Schwab Professor of Economics, Stanford University (1973 to present) | 45 | Cadence Design Systems; Exponent; Financial Engines |
Interested Trustee | |||||
Jonathan S. Thomas (1963) | Trustee and President | Since 2007 | President and Chief Executive Officer, ACC (2007 to present). Also serves as Chief Executive Officer, ACS; Executive Vice President, ACIM; Director, ACC, ACIM and other ACC subsidiaries | 117 | BioMed Valley Discoveries, Inc. |
The Statement of Additional Information has additional information about the fund's trustees and is available without charge, upon request, by calling 1-800-345-2021.
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Officers
The following table presents certain information about the executive officers of the funds. Each officer serves as an officer for 16 (in the case of Robert J. Leach, 15) investment companies in the American Century family of funds. No officer is compensated for his or her service as an officer of the funds. The listed officers are interested persons of the funds and are appointed or re-appointed on an annual basis. The mailing address for each of the officers listed below is 4500 Main Street, Kansas City, Missouri 64111.
Name (Year of Birth) | Offices with the Funds | Principal Occupation(s) During the Past Five Years |
Jonathan S. Thomas (1963) | Trustee and President since 2007 | President and Chief Executive Officer, ACC (2007 to present). Also serves as Chief Executive Officer, ACS; Executive Vice President, ACIM; Director, ACC, ACIM and other ACC subsidiaries |
R. Wes Campbell (1974) | Chief Financial Officer and Treasurer since 2018 | Investment Operations and Investment Accounting, ACS (2000 to present) |
Amy D. Shelton (1964) | Chief Compliance Officer and Vice President since 2014 | Chief Compliance Officer, American Century funds, (2014 to present); Chief Compliance Officer, ACIM (2014 to present); Chief Compliance Officer, ACIS (2009 to present); Vice President, Client Interactions and Marketing, ACIS (2013 to 2014). Also serves as Vice President, ACIS |
Charles A. Etherington (1957) | General Counsel since 2007 and Senior Vice President since 2006 | Attorney, ACC (1994 to present); Vice President, ACC (2005 to present); General Counsel, ACC (2007 to present). Also serves as General Counsel, ACIM, ACS, ACIS and other ACC subsidiaries; and Senior Vice President, ACIM and ACS |
C. Jean Wade (1964) | Vice President since 2012 | Senior Vice President, ACS (2017 to present); Vice President, ACS (2000 to 2017) |
Robert J. Leach (1966) | Vice President since 2006 | Vice President, ACS (2000 to present) |
David H. Reinmiller (1963) | Vice President since 2000 | Attorney, ACC (1994 to present). Also serves as Vice President, ACIM and ACS |
Ward D. Stauffer (1960) | Secretary since 2005 | Attorney, ACC (2003 to present) |
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Approval of Management Agreement |
At a meeting held on June 19, 2018, the Fund’s Board of Trustees (the "Board") unanimously approved the renewal of the management agreement pursuant to which American Century Investment Management, Inc. (the “Advisor”) acts as the investment advisor for the Fund. Under Section 15(c) of the Investment Company Act, contracts for investment advisory services are required to be reviewed, evaluated, and approved by a majority of a fund’s directors/trustees, including a majority of the independent Trustees, each year. The Board regards this annual evaluation and renewal as one of its most important responsibilities.
The independent Trustees have memorialized a statement regarding the relationship between their ongoing obligations to oversee and evaluate the performance of the Advisor and their annual consideration of renewal of the management agreement. In that statement, the independent Trustees noted that their assessment of the Advisor’s performance is an ongoing process that takes place over the entire year and is informed by all of the extensive information that the Board and its committees receive and consider over time. This information, together with the additional materials provided specifically in connection with the review, are central to the Board’s assessment of the Advisor’s performance and its determination whether to renew the Fund’s management agreement.
Prior to its consideration of the renewal of the management agreement, the Board requested and reviewed extensive data and analysis relating to the proposed renewal. This information and analysis was compiled by the Advisor and certain independent providers of evaluation data concerning the Fund and the services provided to the Fund by the Advisor.
In connection with its consideration of the renewal of the management agreement, the Board’s review and evaluation of the services provided by the Advisor included, but was not limited to, the following:
• | the nature, extent, and quality of investment management, shareholder services, and other services provided to the Fund; |
• | the wide range of other programs and services the Advisor provides to the Fund and its shareholders on a routine and non-routine basis; |
• | the investment performance of the Fund, including data comparing the Fund’s performance to appropriate benchmarks and/or a peer group of other mutual funds with similar investment objectives and strategies; |
• | the cost of owning the Fund compared to the cost of owning similar funds; |
• | the Advisor’s compliance policies, procedures, and regulatory experience; |
• | financial data showing the cost of services provided to the Fund, the profitability of the Fund to the Advisor, and the overall profitability of the Advisor; |
• | strategic plans of the Advisor; |
• | any economies of scale associated with the Advisor’s management of the Fund and other accounts; |
• | services provided and charges to other investment management clients of the Advisor; |
• | acquired fund fees and expenses; |
• | payments and practices in connection with financial intermediaries holding shares of the Fund and the services provided by intermediaries in connection therewith; and |
• | any collateral benefits derived by the Advisor from the management of the Fund. |
In keeping with its practice, the Board held two in-person meetings to review and discuss the information provided in response to their request and held active discussions with the Advisor regarding the renewal of the management agreement. The independent Trustees had the benefit of the advice of their independent counsel throughout the process.
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Factors Considered
The Trustees considered all of the information provided by the Advisor, the independent data providers, and the independent Trustees’ independent counsel in connection with the approval. They determined that the information was sufficient for them to evaluate the management agreement for the Fund. In connection with their review, the Trustees did not identify any single factor as being all-important or controlling and each Trustee may have attributed different levels of importance to different factors. In deciding to renew the management agreement, the Board based its decision on a number of factors, including the following:
Nature, Extent and Quality of Services - Generally. Under the management agreement, the Advisor is responsible for providing or arranging for all services necessary for the operation of the Fund. The Board noted that the Advisor provides or arranges at its own expense a wide variety of services including:
• | constructing and designing the Fund |
• | portfolio research and security selection |
• | initial capitalization/funding |
• | securities trading |
• | Fund administration |
• | custody of Fund assets |
• | daily valuation of the Fund’s portfolio |
• | shareholder servicing and transfer agency, including shareholder confirmations, recordkeeping, and communications |
• | legal services (except the independent Trustees’ counsel) |
• | regulatory and portfolio compliance |
• | financial reporting |
• | marketing and distribution (except amounts paid by the Fund under Rule 12b-1 plans) |
The Board noted that many of these services have expanded over time in terms of both quantity and complexity in response to shareholder demands, competition in the industry, changing distribution channels, and the changing regulatory environment.
Investment Management, Shareholder, and Other Services. The nature of the investment management services provided to the Fund is quite complex and allows Fund shareholders access to professional money management, instant diversification of their investments within an asset class, the opportunity to easily diversify among asset classes by investing in or exchanging among various American Century Investments funds, and liquidity. In evaluating investment performance, the Board expects the Advisor to manage the Fund in accordance with its investment objectives and approved strategies. Further, the Trustees recognize that the Advisor has an obligation to seek the best execution of fund trades. In providing these services, the Advisor utilizes teams of investment professionals (portfolio managers, analysts, research assistants, and securities traders) who require extensive information technology, research, training, compliance, and other systems to conduct their business. The Board, directly and through its Portfolio Committee, regularly reviews investment performance information for the Fund, together with comparative information for appropriate benchmarks and/or peer groups of similarly-managed funds, over different time horizons. The Trustees also review detailed performance information during the management agreement approval process. If performance concerns are identified, the Fund receives special reviews until performance improves, during which the Board discusses with the Advisor the reasons for such results (e.g., market conditions, security selection) and any efforts being undertaken to improve performance. The Fund’s performance was above its benchmark for the one-, three-, five-, and ten-year periods reviewed by the Board. The Board found the investment management services provided by the Advisor to the Fund to be satisfactory and consistent with the management agreement.
52
Under the management agreement, the Advisor provides the Fund with a comprehensive package of transfer agency, shareholder, and other services. The Board, directly and through various committees of the Board, regularly reviews reports and evaluations of such services at its regular meetings. These reports include, but are not limited to, information regarding the operational efficiency and accuracy of the shareholder and transfer agency services provided, staffing levels, shareholder satisfaction (as measured by external as well as internal sources), technology support, new products and services offered to Fund shareholders, securities trading activities, portfolio valuation services, auditing services, and legal and operational compliance activities. The Board found the services provided by the Advisor to the Fund under the management agreement to be competitive and of high quality.
Costs of Services and Profitability. The Advisor provides detailed information concerning its cost of providing various services to the Fund, its profitability in managing the Fund, its overall profitability, and its financial condition. The Trustees have reviewed with the Advisor the methodology used to prepare this financial information. This information is considered in evaluating the Advisor’s financial condition, its ability to continue to provide services under the management agreement, and the reasonableness of the current management fee. The Board concluded that the Advisor’s profits were reasonable in light of the services provided to the Fund.
Economies of Scale. The Board also reviewed information provided by the Advisor regarding the possible existence of economies of scale in connection with the management of the Fund. The Board concluded that economies of scale are difficult to measure and predict with precision, especially on a fund-by-fund basis. The Board concluded that the Advisor is appropriately sharing economies of scale through its competitive fee structure, offering competitive fees from fund inception, and through reinvestment in its business to provide shareholders enhanced and expanded services.
Comparison to Other Funds’ Fees. The management agreement provides that the Fund pays the Advisor a single, all-inclusive (or unified) management fee for providing all services necessary for the management and operation of the Fund, other than brokerage expenses, expenses attributable to short sales, taxes, interest, extraordinary expenses, the fees and expenses of the Fund’s independent Trustees (including their independent legal counsel), and expenses incurred in connection with the provision of shareholder services and distribution services under a plan adopted pursuant to Rule 12b-1 under the 1940 Act. Under the unified fee structure, the Advisor is responsible for providing all investment advisory, custody, audit, administrative, compliance, recordkeeping, marketing, and shareholder services, or arranging and supervising third parties to provide such services. By contrast, most other funds are charged a variety of fees, including an investment advisory fee, a transfer agency fee, an administrative fee, distribution charges, and other expenses. Other than their investment advisory fees and any applicable Rule 12b-1 distribution fees, all other components of the total fees charged by these other funds may be increased without shareholder approval. The Board believes the unified fee structure is a benefit to Fund shareholders because it clearly discloses to shareholders the cost of owning Fund shares, and, since the unified fee cannot be increased without a vote of Fund shareholders, it shifts to the Advisor the risk of increased costs of operating the Fund and provides a direct incentive to minimize administrative inefficiencies. Part of the Board’s analysis of fee levels involves reviewing certain evaluative data compiled by an independent provider and comparing the Fund’s unified fee to the total expense ratio of peer funds. The unified fee charged to shareholders of the Fund was below the median of the total expense ratios of the Fund’s peer group. The Board concluded that the management fee paid by the Fund to the Advisor under the management agreement is reasonable in light of the services provided to the Fund.
Comparison to Fees and Services Provided to Other Clients of the Advisor. The Board also requested and received information from the Advisor concerning the nature of the services, fees, costs, and profitability of its advisory services to advisory clients other than the Fund. They observed that these varying types of client accounts require different services and involve different regulatory and entrepreneurial risks than the management of the Fund. The Board analyzed this
53
information and concluded that the fees charged and services provided to the Fund were reasonable by comparison.
Payments to Intermediaries. The Trustees also requested and received a description of payments made to intermediaries by the Fund and the Advisor and services provided by intermediaries. These payments include various payments made by the Fund or the Advisor to different types of intermediaries and recordkeepers for distribution and service activities provided for the Fund. The Trustees reviewed such information and received representations from the Advisor that all such payments by the Fund were made pursuant to the Fund’s Rule 12b-1 Plan and that all such payments by the Advisor were made from the Advisor’s resources and reasonable profits. The Board found such payments to be reasonable in scope and purpose.
Collateral or “Fall-Out” Benefits Derived by the Advisor. The Board considered the existence of collateral benefits the Advisor may receive as a result of its relationship with the Fund. The Board noted that the Advisor’s primary business is managing mutual funds and it generally does not use fund or shareholder information to generate profits in other lines of business, and therefore does not derive any significant collateral benefits from them. The Board noted that the Advisor may receive proprietary research from broker-dealers that execute fund portfolio transactions. The Board also determined that the Advisor is able to provide investment management services to certain clients other than the Fund, at least in part, due to its existing infrastructure built to serve the fund complex. The Board noted that the assets of those other accounts are, where applicable, included with the assets of the Fund to determine breakpoints in the management fee schedule.
Existing Relationship. The Board also considered whether there was any reason for not continuing the existing arrangement with the Advisor. In this regard, the Board was mindful of the potential disruptions of the Fund’s operations and various risks, uncertainties, and other effects that could occur as a result of a decision not to continue such relationship. In particular, the Board recognized that most shareholders have invested in the Fund on the strength of the Advisor’s industry standing and reputation and in the expectation that the Advisor will have a continuing role in providing advisory services to the Fund.
Conclusion of the Trustees. As a result of this process, the Board, including all of the independent Trustees and assisted by the advice of independent legal counsel, taking into account all of the factors discussed above and the information provided by the Advisor and others in connection with its review and throughout the year, concluded that the management agreement between the Fund and the Advisor is fair and reasonable in light of the services provided and should be renewed.
54
Additional Information |
Retirement Account Information
As required by law, distributions you receive from certain retirement accounts are subject to federal income tax withholding, unless you elect not to have withholding apply*. Tax will be withheld on the total amount withdrawn even though you may be receiving amounts that are not subject to withholding, such as nondeductible contributions. In such case, excess amounts of withholding could occur. You may adjust your withholding election so that a greater or lesser amount will be withheld.
If you don’t want us to withhold on this amount, you must notify us to not withhold the federal income tax. You may notify us in writing or in certain situations by telephone or through other electronic means. For systematic withdrawals, your withholding election will remain in effect until revoked or changed by filing a new election. You have the right to revoke your election at any time and change your withholding percentage for future distributions.
Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.
State tax will be withheld if, at the time of your distribution, your address is within one of the mandatory withholding states and you have federal income tax withheld (or as otherwise required by state law). State taxes will be withheld from your distribution in accordance with the respective state rules.
*Some 403(b), 457 and qualified retirement plan distributions may be subject to 20% mandatory withholding, as they are subject to special tax and withholding rules. Your plan administrator or plan sponsor is required to provide you with a special tax notice explaining those rules at the time you request a distribution. If applicable, federal and/or state taxes may be withheld from your distribution amount.
Proxy Voting Policies
Descriptions of the principles and policies that the fund's investment advisor uses in exercising the voting rights associated with the securities purchased and/or held by the fund are available without charge, upon request, by calling 1-800-345-2021 or visiting the "About Us" page of American Century Investments’ website at americancentury.com. A description of the policies is also available on the Securities and Exchange Commission’s website at sec.gov. Information regarding how the investment advisor voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the "About Us" page at americancentury.com. It is also available at sec.gov.
Quarterly Portfolio Disclosure
The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q. The fund’s Forms N-Q are available on the SEC’s website at sec.gov, and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The fund also makes its complete schedule of portfolio holdings for the most recent quarter of its fiscal year available on its website at americancentury.com and, upon request, by calling 1-800-345-2021.
55
Other Tax Information
The following information is provided pursuant to provisions of the Internal Revenue Code.
The fund designates $47,159,456 as exempt interest dividends for the fiscal year ended August 31, 2018.
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Contact Us | americancentury.com | |
Automated Information Line | 1-800-345-8765 | |
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | |
Investors Using Advisors | 1-800-378-9878 | |
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | |
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | |
Telecommunications Relay Service for the Deaf | 711 | |
American Century California Tax-Free and Municipal Funds | ||
Investment Advisor: American Century Investment Management, Inc. Kansas City, Missouri | ||
This report and the statements it contains are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. | ||
©2018 American Century Proprietary Holdings, Inc. All rights reserved. CL-ANN-90327 1810 |
![acihorizblkd26.jpg](https://capedge.com/proxy/N-CSR/0000717316-18-000021/acihorizblkd26.jpg)
Annual Report | |
August 31, 2018 | |
California Tax-Free Money Market Fund | |
Investor Class (BCTXX) |
Table of Contents |
President’s Letter | ||
Performance | 3 | |
Fund Characteristics | ||
Shareholder Fee Example | ||
Schedule of Investments | ||
Statement of Assets and Liabilities | ||
Statement of Operations | ||
Statement of Changes in Net Assets | ||
Notes to Financial Statements | ||
Financial Highlights | ||
Report of Independent Registered Public Accounting Firm | ||
Management | ||
Approval of Management Agreement | ||
Additional Information |
Any opinions expressed in this report reflect those of the author as of the date of the report, and do not necessarily represent the opinions of American Century Investments® or any other person in the American Century Investments organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century Investments disclaims any responsibility to update such opinions. These opinions may not be relied upon as investment advice and, because investment decisions made by American Century Investments funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century Investments fund. Security examples are used for representational purposes only and are not intended as recommendations to purchase or sell securities. Performance information for comparative indices and securities is provided to American Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.
President’s Letter |
![jthomasrev0514.jpg](https://capedge.com/proxy/N-CSR/0000717316-18-000021/jthomasrev0514.jpg)
Dear Investor:
Thank you for reviewing this annual report for the 12 months ended August 31, 2018. Annual reports help convey important information about fund returns, including market factors that affected performance during the reporting period. For additional, updated investment and market insights, we encourage you to visit our website, americancentury.com.
Tax Reform, Rising Rates Led to Muted Municipal Bond Returns
Fixed-income investors faced a challenging backdrop as the reporting period unfolded. Early on, improving economic data, along with the Federal Reserve’s (Fed’s) efforts to normalize monetary policy, helped push U.S. Treasury yields higher. In addition to these influences, uncertainty regarding federal tax reform also weighed on the municipal bond (muni) market. Debate surrounding certain provisions related to the muni market pressured returns ahead of Congress’s December 2017 vote on the tax-reform bill. However, the final legislation was devoid of many surprises and left intact the tax-exempt status of most munis.
Heightened market volatility resurfaced in early 2018. Positive economic and jobs data and rising inflation expectations helped drive Treasury yields to their highest levels in several years. In response, the Fed assumed a more hawkish tone and upped its rate-hike outlook for 2018. On the political front, President Trump’s administration announced a series of tariffs that fueled fears of a global trade war, which contributed to the broad market unrest.
Volatility eased somewhat by the end of the reporting period. Tariffs and other geopolitical issues sparked a flight to quality, and Treasury yields retreated from their earlier highs. Overall, a slowdown in muni issuance, particularly in the second half of the period, coupled with healthy investor demand for munis aided returns. For the 12-month period, national and California munis advanced slightly and outperformed Treasuries. Returns for high-yield munis were stronger, bolstered by investor demand for yield.
With inflationary pressures mounting, interest rates rising, and the implications of tax reform still unfolding, fixed-income investors will continue to face evolving opportunities and challenges. We believe this scenario warrants a disciplined, diversified, and risk-aware approach, using professionally managed portfolios in pursuit of investment goals. We appreciate your continued trust and confidence in us.
Sincerely,
![image48a01.jpg](https://capedge.com/proxy/N-CSR/0000717316-18-000021/image48a01.jpg)
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
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Performance |
Total Returns as of August 31, 2018 | ||||||
Average Annual Returns | ||||||
Ticker Symbol | 1 year | 5 years | 10 years | Since Inception | Inception Date | |
Investor Class | BCTXX | 0.75% | 0.23% | 0.20% | 2.27% | 11/9/83 |
Fund returns would have been lower if a portion of the fees had not been waived.
Total Annual Fund Operating Expenses |
Investor Class 0.50% |
The total annual fund operating expenses shown is as stated in the fund’s prospectus current as of the date of this report. The prospectus may vary from the expense ratio shown elsewhere in this report because it is based on a different time period, includes acquired fund fees and expenses, and, if applicable, does not include fee waivers or expense reimbursements.
Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Total returns for periods less than one year are not annualized. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. For additional information about the fund, please consult the prospectus.
You could lose money by investing in the fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund’s sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.
The 7-day current yield more closely reflects the current earnings of the fund than the total return.
3
Fund Characteristics |
August 31, 2018 | |
Yields | |
7-Day Current Yield | 1.03% |
7-Day Effective Yield | 1.04% |
Portfolio at a Glance | |
Weighted Average Maturity | 10 days |
Weighted Average Life | 21 days |
Portfolio Composition by Maturity | % of fund investments |
1-30 days | 93% |
31-90 days | 7% |
91-180 days | — |
More than 180 days | — |
4
Shareholder Fee Example |
Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption/exchange fees; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in your fund and to compare these costs with the ongoing cost of investing in other mutual funds.
The example is based on an investment of $1,000 made at the beginning of the period and held for the entire period from March 1, 2018 to August 31, 2018.
Actual Expenses
The table provides information about actual account values and actual expenses for each class. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. First, identify the share class you own. Then simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
If you hold Investor Class shares of any American Century Investments fund, or I Class shares of the American Century Diversified Bond Fund, in an American Century Investments account (i.e., not a financial intermediary or retirement plan account), American Century Investments may charge you a $12.50 semiannual account maintenance fee if the value of those shares is less than $10,000. We will redeem shares automatically in one of your accounts to pay the $12.50 fee. In determining your total eligible investment amount, we will include your investments in all personal accounts (including American Century Investments Brokerage accounts) registered under your Social Security number. Personal accounts include individual accounts, joint accounts, UGMA/UTMA accounts, personal trusts, Coverdell Education Savings Accounts and IRAs (including traditional, Roth, Rollover, SEP-, SARSEP- and SIMPLE-IRAs), and certain other retirement accounts. If you have only business, business retirement, employer-sponsored or American Century Investments Brokerage accounts, you are currently not subject to this fee. If you are subject to the Account Maintenance Fee, your account value could be reduced by the fee amount.
Hypothetical Example for Comparison Purposes
The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund’s share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption/exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
5
Beginning Account Value 3/1/18 | Ending Account Value 8/31/18 | Expenses Paid During Period(1) 3/1/18 - 8/31/18 | Annualized Expense Ratio(1) | |
Actual | ||||
Investor Class | $1,000 | $1,004.50 | $2.53 | 0.50% |
Hypothetical | ||||
Investor Class | $1,000 | $1,022.69 | $2.55 | 0.50% |
(1) | Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 184, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses. |
6
Schedule of Investments |
AUGUST 31, 2018
Principal Amount | Value | |||||
MUNICIPAL SECURITIES — 99.2% | ||||||
California — 98.9% | ||||||
California Enterprise Development Authority Rev., (Community Hospice, Inc.), VRDN, 1.61%, 9/7/18, resets weekly off the remarketing agent (LOC: Bank of Stockton and FHLB) | $ | 2,995,000 | $ | 2,995,000 | ||
California Enterprise Development Authority Rev., (Humane Society Silicon Valley), VRDN, 1.61%, 9/7/18, resets weekly off the remarketing agent (LOC: First Republic Bank and FHLB) | 5,630,000 | 5,630,000 | ||||
California Health Facilities Financing Authority Rev., (Kaiser Credit Group), VRDN, 1.49%, 9/7/18, resets weekly off the remarketing agent | 4,250,000 | 4,250,000 | ||||
California Infrastructure & Economic Development Bank Rev., (Bay Institute Aquarium Foundation), VRDN, 1.45%, 9/7/18, resets weekly off the remarketing agent (LOC: Union Bank N.A. and FHLB) | 2,135,000 | 2,135,000 | ||||
California Infrastructure & Economic Development Bank Rev., (Columbia College), VRDN, 1.60%, 9/7/18, resets weekly off the remarketing agent (LOC: Rabobank N.A. and Rabobank Nederland) | 4,565,000 | 4,565,000 | ||||
California Infrastructure & Economic Development Bank Rev., (Columbia College), VRDN, 1.60%, 9/7/18, resets weekly off the remarketing agent (LOC: Rabobank N.A. and Rabobank Cooperatieve) | 2,035,000 | 2,035,000 | ||||
California Infrastructure & Economic Development Bank Rev., (EB Property Management LLC), VRDN, 1.56%, 9/7/18, resets weekly off the remarketing agent (LOC: California United Bank and Wells Fargo Bank N.A.) | 1,180,000 | 1,180,000 | ||||
California Infrastructure & Economic Development Bank Rev., (Kennfoods USA LLC), VRDN, 1.60%, 9/7/18, resets weekly off the remarketing agent (LOC: Bank of the West) | 880,000 | 880,000 | ||||
California Infrastructure & Economic Development Bank Rev., (Pacific Gas & Electric Co.), VRDN, 1.50%, 9/4/18, resets daily off the remarketing agent (LOC: Union Bank N.A.) | 400,000 | 400,000 | ||||
California Infrastructure & Economic Development Bank Rev., (Pacific Gas & Electric Co.), VRDN, 1.50%, 9/4/18, resets daily off the remarketing agent (LOC: Union Bank N.A.) | 2,300,000 | 2,300,000 | ||||
California Infrastructure & Economic Development Bank Rev., VRDN, 1.61%, 9/7/18, resets weekly off the remarketing agent (LOC: Union Bank N.A.) | 2,030,000 | 2,030,000 | ||||
California Municipal Finance Authority Rev., (Central Coast YMCA), VRDN, 1.59%, 9/7/18, resets weekly off the remarketing agent (LOC: Pacific Capital Bank N.A. and FHLB) | 4,320,000 | 4,320,000 | ||||
California Municipal Finance Authority Rev., (High Desert Partnership In Academic Excellence Foundation, Inc.), VRDN, 1.61%, 9/7/18, resets weekly off the remarketing agent (LOC: Union Bank N.A.) | 1,905,000 | 1,905,000 | ||||
California Pollution Control Financing Authority Rev., (Pacific Gas & Electric Co.), VRDN, 1.48%, 9/4/18, resets daily off the remarketing agent (LOC: TD Bank N.A.) | 1,800,000 | 1,800,000 | ||||
California Statewide Communities Development Authority Rev., (Kaiser Credit Group), VRDN, 1.51%, 9/7/18, resets weekly off the remarketing agent | 1,205,000 | 1,205,000 | ||||
California Statewide Communities Development Authority Rev., (Kaiser Credit Group), VRDN, 1.52%, 9/7/18, resets weekly off the remarketing agent | 700,000 | 700,000 |
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Principal Amount | Value | |||||
California Statewide Communities Development Authority Rev., (Rady Children's Hospital Obligated Group), VRDN, 1.37%, 9/7/18, resets weekly off the remarketing agent (LOC: Northern Trust Company) | $ | 1,100,000 | $ | 1,100,000 | ||
Calleguas-Las Virgenes Public Financing Authority Rev., VRDN, 1.49%, 9/7/18, resets weekly off the remarketing agent (LOC: Wells Fargo Bank N.A.) | 1,200,000 | 1,200,000 | ||||
Fresno Rev., (Wasatch Pool Holdings LLC), VRDN, 1.42%, 9/7/18, resets weekly off the remarketing agent (LOC: FNMA)(LIQ FAC: FNMA) | 5,085,000 | 5,085,000 | ||||
Irvine Ranch Water District Special Assessment, VRN, 1.55%, 9/6/18, resets weekly off the MUNIPSA less 0.01% | 4,000,000 | 4,000,000 | ||||
Irvine Ranch Water District Special Assessment, VRN, 1.55%, 9/6/18, resets weekly off the MUNIPSA less 0.01% | 4,000,000 | 4,000,000 | ||||
Los Angeles Community Redevelopment Agency Rev., (Promenade Towers Ltd.), VRDN, 1.41%, 9/7/18, resets weekly off the remarketing agent (LOC: FHLMC)(LIQ FAC: FHLMC) | 6,100,000 | 6,100,000 | ||||
Los Angeles County Metropolitan Transportation Authority, 1.40%, 9/6/18 (LOC: Citibank N.A.) | 4,000,000 | 4,000,000 | ||||
Metropolitan Water District of Southern California Rev., VRN, 1.53%, 9/6/18, resets weekly off the MUNIPSA less 0.03% | 5,000,000 | 5,000,000 | ||||
Modesto Rev., (Westdale Commons), VRDN, 1.45%, 9/7/18, resets weekly off the remarketing agent (LOC: FNMA)(LIQ FAC: FNMA) | 2,000,000 | 2,000,000 | ||||
Otay Water District COP, VRDN, 1.61%, 9/7/18, resets weekly off the remarketing agent (LOC: Union Bank N.A.) | 500,000 | 500,000 | ||||
Reedley COP, (Mennonite Brethren Homes, Inc.), VRDN, 1.61%, 9/7/18, resets weekly off the remarketing agent (LOC: Bank of the Sierra and FHLB) | 5,380,000 | 5,380,000 | ||||
Riverside County Rev., 3.00%, 10/25/18 | 2,500,000 | 2,507,528 | ||||
San Bernardino County Rev., (WLP Parkview Place Apartments LLC), VRDN, 1.36%, 9/7/18, resets weekly off the remarketing agent (LOC: FNMA)(LIQ FAC: FNMA) | 2,500,000 | 2,500,000 | ||||
San Bernardino County Flood Control District Rev., VRDN, 1.52%, 9/7/18, resets weekly off the remarketing agent (LOC: Bank of America N.A.) | 1,000,000 | 1,000,000 | ||||
San Diego County Regional Transportation Commission Rev., VRDN, 1.30%, 9/7/18, resets weekly off the remarketing agent (SBBPA: State Street Bank & Trust Co.) | 4,000,000 | 4,000,000 | ||||
San Diego County Water Authority Financing Corp., 1.52%, 10/2/18 (LIQ FAC: Bank of America N.A.) | 4,000,000 | 4,000,000 | ||||
San Diego Public Facilities Financing Authority Water Rev., 1.43%, 10/4/18 (LOC: Bank of America N.A.) | 4,000,000 | 4,000,000 | ||||
San Francisco City & County Public Utilities Commission, 1.20%, 9/25/18 (LOC: Bank of America N.A.) | 3,000,000 | 3,000,000 | ||||
San Francisco City & County Public Utilities Commission Power, 1.47%, 9/12/18 (LOC: Bank of America N.A.) | 2,000,000 | 2,000,000 | ||||
State of California Department of Water Resources, 1.41%, 9/11/18 (GA: Wells Fargo Bank N.A.) | 7,000,000 | 7,000,000 | ||||
State of California Department of Water Resources, 1.40%, 9/12/18 (GA: Wells Fargo Bank N.A.) | 2,319,000 | 2,319,000 | ||||
State of California Department of Water Resources, 1.60%, 10/3/18 (GA: Wells Fargo Bank N.A.) | 1,500,000 | 1,500,000 | ||||
Tender Option Bond Trust Receipts/Certificates GO, VRDN, 1.66%, 9/7/18, resets weekly off the remarketing agent (LIQ FAC: JPMorgan Chase Bank N.A.)(1) | 3,000,000 | 3,000,000 | ||||
Tender Option Bond Trust Receipts/Certificates Rev., VRDN, 1.54%, 9/7/18, resets weekly off the remarketing agent (LIQ FAC: Barclays Bank plc)(1) | 2,220,000 | 2,220,000 |
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Principal Amount | Value | |||||
Tender Option Bond Trust Receipts/Certificates Rev., VRDN, 1.56%, 9/7/18, resets weekly off the remarketing agent (LIQ FAC: JPMorgan Chase Bank N.A.)(1) | $ | 990,000 | $ | 990,000 | ||
Tender Option Bond Trust Receipts/Certificates Rev., VRDN, 1.58%, 9/7/18, resets weekly off the remarketing agent (LIQ FAC: Bank of America N.A.)(1) | 5,000,000 | 5,000,000 | ||||
Tender Option Bond Trust Receipts/Certificates Rev., VRDN, 1.59%, 9/7/18, resets weekly off the remarketing agent (LIQ FAC: JPMorgan Chase Bank N.A.)(1) | 5,000,000 | 5,000,000 | ||||
Tender Option Bond Trust Receipts/Certificates Rev., VRDN, 1.59%, 9/7/18, resets weekly off the remarketing agent (LIQ FAC: JPMorgan Chase Bank N.A.)(1) | 3,500,000 | 3,500,000 | ||||
Tender Option Bond Trust Receipts/Certificates Rev., VRDN, 1.66%, 9/7/18, resets weekly off the remarketing agent (LIQ FAC: JPMorgan Chase Bank N.A.)(1) | 3,750,000 | 3,750,000 | ||||
Town of Apple Valley COP, VRDN, 1.61%, 9/7/18, resets weekly off the remarketing agent (LOC: Union Bank N.A.) | 385,000 | 385,000 | ||||
Town of Hillsborough COP, VRDN, 1.30%, 9/7/18, resets weekly off the remarketing agent (SBBPA: Bank of the West) | 6,950,000 | 6,950,000 | ||||
University of California Rev., VRDN, 1.37%, 9/7/18, resets daily off the remarketing agent | 1,800,000 | 1,800,000 | ||||
Victorville Joint Powers Finance Authority Rev., VRDN, 2.06%, 9/7/18, resets weekly off the remarketing agent (LOC: BNP Paribas) | 13,395,000 | 13,395,000 | ||||
Yolo County Rev., (Beckett Hall, Inc.), VRDN, 1.57%, 9/7/18, resets weekly off the remarketing agent (LOC: Bank of the West) | 6,070,000 | 6,070,000 | ||||
162,581,528 | ||||||
Nevada — 0.3% | ||||||
Truckee Meadows Water Authority, 1.44%, 9/5/18 (LOC: Wells Fargo Bank N.A.) | 525,000 | 525,000 | ||||
TOTAL INVESTMENT SECURITIES — 99.2% | 163,106,528 | |||||
OTHER ASSETS AND LIABILITIES — 0.8% | 1,336,870 | |||||
TOTAL NET ASSETS — 100.0% | $ | 164,443,398 |
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NOTES TO SCHEDULE OF INVESTMENTS | ||
COP | - | Certificates of Participation |
FHLB | - | Federal Home Loan Bank |
FHLMC | - | Federal Home Loan Mortgage Corporation |
FNMA | - | Federal National Mortgage Association |
GA | - | Guaranty Agreement |
GO | - | General Obligation |
LIQ FAC | - | Liquidity Facilities |
LOC | - | Letter of Credit |
MUNIPSA | - | SIFMA Municipal Swap Index |
resets | - | The frequency with which a security's coupon changes, based on current market conditions or an underlying index. |
SBBPA | - | Standby Bond Purchase Agreement |
VRDN | - | Variable Rate Demand Note. Interest reset date is indicated. Rate shown is effective at the period end. |
VRN | - | Variable Rate Note. Interest reset date is indicated. Rate shown is effective at the period end. |
(1) | Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration, normally to qualified institutional investors. The aggregate value of these securities at the period end was $23,460,000, which represented 14.3% of total net assets. |
See Notes to Financial Statements.
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Statement of Assets and Liabilities |
AUGUST 31, 2018 | |||
Assets | |||
Investment securities, at value (amortized cost and cost for federal income tax purposes) | $ | 163,106,528 | |
Cash | 601,800 | ||
Receivable for investments sold | 425,000 | ||
Receivable for capital shares sold | 114,215 | ||
Interest receivable | 278,401 | ||
164,525,944 | |||
Liabilities | |||
Payable for capital shares redeemed | 12,555 | ||
Accrued management fees | 69,991 | ||
82,546 | |||
Net Assets | $ | 164,443,398 | |
Investor Class Capital Shares | |||
Shares outstanding (unlimited number of shares authorized) | 164,417,407 | ||
Net Asset Value Per Share | $ | 1.00 | |
Net Assets Consist of: | |||
Capital paid in | $ | 164,417,413 | |
Undistributed net realized gain | 25,985 | ||
$ | 164,443,398 |
See Notes to Financial Statements.
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Statement of Operations |
YEAR ENDED AUGUST 31, 2018 | |||
Investment Income (Loss) | |||
Income: | |||
Interest | $ | 2,104,179 | |
Expenses: | |||
Management fees | 829,080 | ||
Trustees' fees and expenses | 10,604 | ||
Other expenses | 93 | ||
839,777 | |||
Net investment income (loss) | 1,264,402 | ||
Net realized gain (loss) on investment transactions | 25,985 | ||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 1,290,387 |
See Notes to Financial Statements.
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Statement of Changes in Net Assets |
YEARS ENDED AUGUST 31, 2018 AND AUGUST 31, 2017 | ||||||
Increase (Decrease) in Net Assets | August 31, 2018 | August 31, 2017 | ||||
Operations | ||||||
Net investment income (loss) | $ | 1,264,402 | $ | 558,177 | ||
Net realized gain (loss) | 25,985 | 1,100 | ||||
Net increase (decrease) in net assets resulting from operations | 1,290,387 | 559,277 | ||||
Distributions to Shareholders | ||||||
From net investment income | (1,264,402 | ) | (558,177 | ) | ||
From net realized gains | (1,100 | ) | (24,559 | ) | ||
Decrease in net assets from distributions | (1,265,502 | ) | (582,736 | ) | ||
Capital Share Transactions | ||||||
Proceeds from shares sold | 79,973,091 | 59,455,310 | ||||
Proceeds from reinvestment of distributions | 1,260,560 | 572,774 | ||||
Payments for shares redeemed | (85,596,679 | ) | (60,863,189 | ) | ||
Net increase (decrease) in net assets from capital share transactions | (4,363,028 | ) | (835,105 | ) | ||
Net increase (decrease) in net assets | (4,338,143 | ) | (858,564 | ) | ||
Net Assets | ||||||
Beginning of period | 168,781,541 | 169,640,105 | ||||
End of period | $ | 164,443,398 | $ | 168,781,541 | ||
Transactions in Shares of the Fund | ||||||
Sold | 79,973,091 | 59,455,310 | ||||
Issued in reinvestment of distributions | 1,260,560 | 572,774 | ||||
Redeemed | (85,596,679 | ) | (60,863,189 | ) | ||
Net increase (decrease) in shares of the fund | (4,363,028 | ) | (835,105 | ) |
See Notes to Financial Statements.
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Notes to Financial Statements |
AUGUST 31, 2018
1. Organization
American Century California Tax-Free and Municipal Funds (the trust) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company and is organized as a Massachusetts business trust. California Tax-Free Money Market Fund (the fund) is one fund in a series issued by the trust. The fund’s investment objective is to seek safety of principal and high current income that is exempt from federal and California income taxes.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently followed by the fund in preparation of its financial statements. The fund is an investment company and follows accounting and reporting guidance in accordance with accounting principles generally accepted in the United States of America. This may require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from these estimates. Management evaluated the impact of events or transactions occurring through the date the financial statements were issued that would merit recognition or disclosure.
Investment Valuations — The fund determines the fair value of its investments and computes its net asset value per share at the close of regular trading (usually 4 p.m. Eastern time) on the New York Stock Exchange (NYSE) on each day the NYSE is open. Investments are generally valued at amortized cost, which approximates fair value. If the fund determines that the amortized cost does not reflect an investment’s fair value, such investment is valued as determined in good faith by the Board of Trustees or its delegate, in accordance with policies and procedures adopted by the Board of Trustees.
Security Transactions — Security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes.
Investment Income — Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums.
Income Tax Status — It is the fund’s policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Distributions to Shareholders — Distributions from net investment income, if any, are declared daily and paid monthly. The fund may make capital gains distributions to comply with the distribution requirements of the Internal Revenue Code.
Indemnifications — Under the trust’s organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
3. Fees and Transactions with Related Parties
Certain officers and trustees of the trust are also officers and/or directors of American Century Companies, Inc. (ACC). The trust's investment advisor, American Century Investment Management, Inc. (ACIM), the trust's distributor, American Century Investment Services, Inc., and the trust's transfer agent, American Century Services, LLC, are wholly owned, directly or indirectly, by ACC.
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Management Fees — The trust has entered into a management agreement with ACIM, under which ACIM provides the fund with investment advisory and management services in exchange for a single, unified management fee (the fee). The agreement provides that all expenses of managing and operating the fund, except brokerage expenses, taxes, interest, fees and expenses of the independent trustees (including legal counsel fees), and extraordinary expenses, will be paid by ACIM. The fee is computed and accrued daily based on the daily net assets of the fund and paid monthly in arrears. The fee consists of (1) an Investment Category Fee based on the daily net assets of the fund and certain other accounts managed by the investment advisor that are in the same broad investment category as the fund and (2) a Complex Fee based on the assets of all the funds in the American Century Investments family of funds. The rates for the Investment Category Fee range from 0.1570% to 0.2700% and the rates for the Complex Fee range from 0.2500% to 0.3100%. The effective annual management fee for the period ended August 31, 2018 was 0.49%.
Trustees’ Fees and Expenses — The Board of Trustees is responsible for overseeing the investment advisor’s management and operations of the fund. The trustees receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Trustees. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. During the period, the interfund purchases and sales were $6,840,000 and $46,632,992, respectively. The effect of interfund transactions on the Statement of Operations was $(8) in net realized gain (loss) on investment transactions.
4. Fair Value Measurements
The fund’s investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.
• | Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments. |
• | Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars. |
• | Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions). |
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments.
As of period end, the fund’s investment securities were classified as Level 2. The Schedule of Investments provides additional information on the fund’s portfolio holdings.
5. Risk Factors
The fund focuses its investments in a single state and therefore may have more exposure to credit risk related to the state of California than a fund with a broader geographical diversification.
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6. Federal Tax Information
The tax character of distributions paid during the years ended August 31, 2018 and August 31, 2017 were as follows:
2018 | 2017 | |||||
Distributions Paid From | ||||||
Exempt income | $ | 1,264,402 | $ | 558,177 | ||
Taxable ordinary income | $ | 1,100 | — | |||
Long-term capital gains | — | $ | 24,559 |
The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
As of August 31, 2018, the fund had undistributed ordinary income and accumulated long-term gains for federal income tax purposes of $11,885 and $14,100, respectively.
7. Recently Issued Accounting Standards
In March 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2017-08, “Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities” (ASU 2017-08). ASU 2017-08 amends the amortization period for certain purchased callable debt securities held at a premium, shortening such period to the earliest call date. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Management is currently evaluating the impact that adopting ASU 2017-08 will have on the financial statements.
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Financial Highlights |
For a Share Outstanding Throughout the Years Ended August 31 (except as noted) | ||||||||||||||||
Per-Share Data | Ratios and Supplemental Data | |||||||||||||||
Income From Investment Operations: | Distributions From: | Ratio to Average Net Assets of: | ||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | Total Return(1) | Operating Expenses | Operating Expenses (before expense waiver) | Net Investment Income (Loss) | Net Investment Income (Loss) (before expense waiver) | Net Assets, End of Period (in thousands) | |||
Investor Class | ||||||||||||||||
2018 | $1.00 | 0.01 | —(2) | 0.01 | (0.01) | —(2) | (0.01) | $1.00 | 0.75% | 0.50% | 0.50% | 0.75% | 0.75% | $164,443 | ||
2017 | $1.00 | —(2) | —(2) | —(2) | —(2) | —(2) | —(2) | $1.00 | 0.35% | 0.50% | 0.50% | 0.33% | 0.33% | $168,782 | ||
2016 | $1.00 | —(2) | —(2) | —(2) | —(2) | —(2) | —(2) | $1.00 | 0.02% | 0.29% | 0.50% | 0.02% | (0.19)% | $169,640 | ||
2015 | $1.00 | —(2) | —(2) | —(2) | —(2) | — | —(2) | $1.00 | 0.01% | 0.13% | 0.50% | 0.01% | (0.36)% | $199,644 | ||
2014 | $1.00 | —(2) | —(2) | —(2) | —(2) | — | —(2) | $1.00 | 0.01% | 0.16% | 0.50% | 0.01% | (0.33)% | $221,042 |
Notes to Financial Highlights |
(1) | Total returns are calculated based on the net asset value of the last business day. Total returns for periods less than one year are not annualized. |
(2) | Per-share amount was less than $0.005. |
See Notes to Financial Statements.
Report of Independent Registered Public Accounting Firm |
To the Board of Trustees of American Century California Tax-Free and Municipal Funds and Shareholders of California Tax-Free Money Market Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of California Tax-Free Money Market Fund (one of the funds constituting American Century California Tax-Free and Municipal Funds, referred to hereafter as the "Fund") as of August 31, 2018, the related statement of operations for the year ended August 31, 2018, the statement of changes in net assets for each of the two years in the period ended August 31, 2018, including the related notes, and the financial highlights for each of the five years in the period ended August 31, 2018 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of August 31, 2018, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended August 31, 2018 and the financial highlights for each of the five years in the period ended August 31, 2018 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of August 31, 2018 by correspondence with the custodian and brokers. We believe that our audits provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
Kansas City, Missouri
October 17, 2018
We have served as the auditor of one or more investment companies in American Century Investments since 1997.
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Management |
Board of Trustees
The individuals listed below serve as trustees of the funds. Each trustee will continue to serve in this capacity until death, retirement, resignation or removal from office. The board has adopted a mandatory retirement age for trustees who are not “interested persons,” as that term is defined in the Investment Company Act (independent trustees). Independent trustees shall retire on December 31 of the year in which they reach their 75th birthday; provided, however, that on or after January 1, 2022, independent trustees shall retire on December 31 of the year in which they reach their 76th birthday.
Mr. Thomas is an “interested person” because he currently serves as President and Chief Executive Officer of American Century Companies, Inc. (ACC), the parent company of American Century Investment Management, Inc. (ACIM or the advisor). The other trustees (more than threefourths of the total number) are independent. They are not employees, directors or officers of, and have no financial interest in, ACC or any of its wholly owned, direct or indirect, subsidiaries, including ACIM, American Century Investment Services, Inc. (ACIS) and American Century Services, LLC (ACS), and they do not have any other affiliations, positions or relationships that would cause them to be considered “interested persons” under the Investment Company Act. The trustees serve in this capacity for eight (in the case of Jonathan S. Thomas, 16; and Ronald J. Gilson, 9) registered investment companies in the American Century Investments family of funds.
The following table presents additional information about the trustees. The mailing address for each trustee other than Mr. Thomas is 1665 Charleston Road, Mountain View, California 94043. The mailing address for Mr. Thomas is 4500 Main Street, Kansas City, Missouri 64111.
Name (Year of Birth) | Position(s) Held with Funds | Length of Time Served | Principal Occupation(s) During Past 5 Years | Number of American Century Portfolios Overseen by Trustee | Other Directorships Held During Past 5 Years |
Independent Trustees | |||||
Tanya S. Beder (1955) | Trustee | Since 2011 | Chairman and CEO, SBCC Group Inc. (independent advisory services) (2006 to present) | 45 | CYS Investments, Inc.; Nabors Industries Ltd. |
Jeremy I. Bulow (1954) | Trustee | Since 2011 | Professor of Economics, Stanford University, Graduate School of Business (1979 to present) | 45 | None |
Anne Casscells (1958) | Trustee | Since 2016 | Co-Chief Executive Officer and Chief Investment Officer, Aetos Alternatives Management (investment advisory firm) (2001 to present); Lecturer in Accounting, Stanford University, Graduate School of Business (2009 to present) | 45 | None |
Ronald J. Gilson (1946) | Trustee and Chairman of the Board | Since 1995 (Chairman since 2005) | Charles J. Meyers Professor of Law and Business, Emeritus, Stanford Law School (1979 to 2016); Marc and Eva Stern Professor of Law and Business, Columbia University School of Law (1992 to present) | 50 | None |
19
Name (Year of Birth) | Position(s) Held with Funds | Length of Time Served | Principal Occupation(s) During Past 5 Years | Number of American Century Portfolios Overseen by Trustee | Other Directorships Held During Past 5 Years |
Independent Trustees | |||||
Frederick L. A. Grauer (1946) | Trustee | Since 2008 | Senior Advisor, iShares by BlackRock, Inc. (investment management firm) (2010 to 2011, 2013 to 2015); Senior Advisor, Course Hero (an educational technology company) (2015 to present) | 45 | None |
Jonathan D. Levin (1972) | Trustee | Since 2016 | Philip H. Knight Professor and Dean, Graduate School of Business, Stanford University (2016 to present); Professor, Stanford University, (2000 to present); Chair, Department of Economics, Stanford University (2011 to 2014) | 45 | None |
Peter F. Pervere (1947) | Trustee | Since 2007 | Retired | 45 | None |
John B. Shoven (1947) | Trustee | Since 2002 | Charles R. Schwab Professor of Economics, Stanford University (1973 to present) | 45 | Cadence Design Systems; Exponent; Financial Engines |
Interested Trustee | |||||
Jonathan S. Thomas (1963) | Trustee and President | Since 2007 | President and Chief Executive Officer, ACC (2007 to present). Also serves as Chief Executive Officer, ACS; Executive Vice President, ACIM; Director, ACC, ACIM and other ACC subsidiaries | 117 | BioMed Valley Discoveries, Inc. |
The Statement of Additional Information has additional information about the fund's trustees and is available without charge, upon request, by calling 1-800-345-2021.
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Officers
The following table presents certain information about the executive officers of the funds. Each officer serves as an officer for 16 (in the case of Robert J. Leach, 15) investment companies in the American Century family of funds. No officer is compensated for his or her service as an officer of the funds. The listed officers are interested persons of the funds and are appointed or re-appointed on an annual basis. The mailing address for each of the officers listed below is 4500 Main Street, Kansas City, Missouri 64111.
Name (Year of Birth) | Offices with the Funds | Principal Occupation(s) During the Past Five Years |
Jonathan S. Thomas (1963) | Trustee and President since 2007 | President and Chief Executive Officer, ACC (2007 to present). Also serves as Chief Executive Officer, ACS; Executive Vice President, ACIM; Director, ACC, ACIM and other ACC subsidiaries |
R. Wes Campbell (1974) | Chief Financial Officer and Treasurer since 2018 | Investment Operations and Investment Accounting, ACS (2000 to present) |
Amy D. Shelton (1964) | Chief Compliance Officer and Vice President since 2014 | Chief Compliance Officer, American Century funds, (2014 to present); Chief Compliance Officer, ACIM (2014 to present); Chief Compliance Officer, ACIS (2009 to present); Vice President, Client Interactions and Marketing, ACIS (2013 to 2014). Also serves as Vice President, ACIS |
Charles A. Etherington (1957) | General Counsel since 2007 and Senior Vice President since 2006 | Attorney, ACC (1994 to present); Vice President, ACC (2005 to present); General Counsel, ACC (2007 to present). Also serves as General Counsel, ACIM, ACS, ACIS and other ACC subsidiaries; and Senior Vice President, ACIM and ACS |
C. Jean Wade (1964) | Vice President since 2012 | Senior Vice President, ACS (2017 to present); Vice President, ACS (2000 to 2017) |
Robert J. Leach (1966) | Vice President since 2006 | Vice President, ACS (2000 to present) |
David H. Reinmiller (1963) | Vice President since 2000 | Attorney, ACC (1994 to present). Also serves as Vice President, ACIM and ACS |
Ward D. Stauffer (1960) | Secretary since 2005 | Attorney, ACC (2003 to present) |
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Approval of Management Agreement |
At a meeting held on June 19, 2018, the Fund’s Board of Trustees (the "Board") unanimously approved the renewal of the management agreement pursuant to which American Century Investment Management, Inc. (the “Advisor”) acts as the investment advisor for the Fund. Under Section 15(c) of the Investment Company Act, contracts for investment advisory services are required to be reviewed, evaluated, and approved by a majority of a fund’s directors/trustees, including a majority of the independent Trustees, each year. The Board regards this annual evaluation and renewal as one of its most important responsibilities.
The independent Trustees have memorialized a statement regarding the relationship between their ongoing obligations to oversee and evaluate the performance of the Advisor and their annual consideration of renewal of the management agreement. In that statement, the independent Trustees noted that their assessment of the Advisor’s performance is an ongoing process that takes place over the entire year and is informed by all of the extensive information that the Board and its committees receive and consider over time. This information, together with the additional materials provided specifically in connection with the review, are central to the Board’s assessment of the Advisor’s performance and its determination whether to renew the Fund’s management agreement.
Prior to its consideration of the renewal of the management agreement, the Board requested and reviewed extensive data and analysis relating to the proposed renewal. This information and analysis was compiled by the Advisor and certain independent providers of evaluation data concerning the Fund and the services provided to the Fund by the Advisor.
In connection with its consideration of the renewal of the management agreement, the Board’s review and evaluation of the services provided by the Advisor included, but was not limited to, the following:
• | the nature, extent, and quality of investment management, shareholder services, and other services provided to the Fund; |
• | the wide range of other programs and services the Advisor provides to the Fund and its shareholders on a routine and non-routine basis; |
• | the investment performance of the Fund, including data comparing the Fund’s performance to appropriate benchmarks and/or a peer group of other mutual funds with similar investment objectives and strategies; |
• | the cost of owning the Fund compared to the cost of owning similar funds; |
• | the Advisor’s compliance policies, procedures, and regulatory experience; |
• | financial data showing the cost of services provided to the Fund, the profitability of the Fund to the Advisor, and the overall profitability of the Advisor; |
• | strategic plans of the Advisor; |
• | any economies of scale associated with the Advisor’s management of the Fund and other accounts; |
• | services provided and charges to other investment management clients of the Advisor; |
• | acquired fund fees and expenses; |
• | payments and practices in connection with financial intermediaries holding shares of the Fund and the services provided by intermediaries in connection therewith; and |
• | any collateral benefits derived by the Advisor from the management of the Fund. |
In keeping with its practice, the Board held two in-person meetings to review and discuss the information provided in response to their request and held active discussions with the Advisor regarding the renewal of the management agreement. The independent Trustees had the benefit of the advice of their independent counsel throughout the process.
22
Factors Considered
The Trustees considered all of the information provided by the Advisor, the independent data providers, and the independent Trustees’ independent counsel in connection with the approval. They determined that the information was sufficient for them to evaluate the management agreement for the Fund. In connection with their review, the Trustees did not identify any single factor as being all-important or controlling and each Trustee may have attributed different levels of importance to different factors. In deciding to renew the management agreement, the Board based its decision on a number of factors, including the following:
Nature, Extent and Quality of Services - Generally. Under the management agreement, the Advisor is responsible for providing or arranging for all services necessary for the operation of the Fund. The Board noted that the Advisor provides or arranges at its own expense a wide variety of services including:
• | constructing and designing the Fund |
• | portfolio research and security selection |
• | initial capitalization/funding |
• | securities trading |
• | Fund administration |
• | custody of Fund assets |
• | daily valuation of the Fund’s portfolio |
• | shareholder servicing and transfer agency, including shareholder confirmations, recordkeeping, and communications |
• | legal services (except the independent Trustees’ counsel) |
• | regulatory and portfolio compliance |
• | financial reporting |
• | marketing and distribution (except amounts paid by the Fund under Rule 12b-1 plans) |
The Board noted that many of these services have expanded over time in terms of both quantity and complexity in response to shareholder demands, competition in the industry, changing distribution channels, and the changing regulatory environment.
Investment Management, Shareholder, and Other Services. The nature of the investment management services provided to the Fund is quite complex and allows Fund shareholders access to professional money management, instant diversification of their investments within an asset class, the opportunity to easily diversify among asset classes by investing in or exchanging among various American Century Investments funds, and liquidity. In evaluating investment performance, the Board expects the Advisor to manage the Fund in accordance with its investment objectives and approved strategies. Further, the Trustees recognize that the Advisor has an obligation to seek the best execution of fund trades. In providing these services, the Advisor utilizes teams of investment professionals (portfolio managers, analysts, research assistants, and securities traders) who require extensive information technology, research, training, compliance, and other systems to conduct their business. The Board, directly and through its Portfolio Committee, regularly reviews investment performance information for the Fund, together with comparative information for appropriate benchmarks and/or peer groups of similarly-managed funds, over different time horizons. The Trustees also review detailed performance information during the management agreement approval process. If performance concerns are identified, the Fund receives special reviews until performance improves, during which the Board discusses with the Advisor the reasons for such results (e.g., market conditions, security selection) and any efforts being undertaken to improve performance. The Fund’s performance was in the first quartile of its peer group for the one-, three-, five-, and ten-year periods reviewed by the Board.The Board found the investment management services provided by the Advisor to the Fund to be satisfactory and consistent with the management agreement.
23
Under the management agreement, the Advisor provides the Fund with a comprehensive package of transfer agency, shareholder, and other services. The Board, directly and through various committees of the Board, regularly reviews reports and evaluations of such services at its regular meetings. These reports include, but are not limited to, information regarding the operational efficiency and accuracy of the shareholder and transfer agency services provided, staffing levels, shareholder satisfaction (as measured by external as well as internal sources), technology support, new products and services offered to Fund shareholders, securities trading activities, portfolio valuation services, auditing services, and legal and operational compliance activities. The Board found the services provided by the Advisor to the Fund under the management agreement to be competitive and of high quality.
Costs of Services and Profitability. The Advisor provides detailed information concerning its cost of providing various services to the Fund, its profitability in managing the Fund, its overall profitability, and its financial condition. The Trustees have reviewed with the Advisor the methodology used to prepare this financial information. This information is considered in evaluating the Advisor’s financial condition, its ability to continue to provide services under the management agreement, and the reasonableness of the current management fee. The Board concluded that the Advisor’s profits were reasonable in light of the services provided to the Fund.
Economies of Scale. The Board also reviewed information provided by the Advisor regarding the possible existence of economies of scale in connection with the management of the Fund. The Board concluded that economies of scale are difficult to measure and predict with precision, especially on a fund-by-fund basis. The Board concluded that the Advisor is appropriately sharing economies of scale through its competitive fee structure, offering competitive fees from fund inception, and through reinvestment in its business to provide shareholders enhanced and expanded services.
Comparison to Other Funds’ Fees. The management agreement provides that the Fund pays the Advisor a single, all-inclusive (or unified) management fee for providing all services necessary for the management and operation of the Fund, other than brokerage expenses, expenses attributable to short sales, taxes, interest, extraordinary expenses, the fees and expenses of the Fund’s independent Trustees (including their independent legal counsel), and expenses incurred in connection with the provision of shareholder services and distribution services under a plan adopted pursuant to Rule 12b-1 under the 1940 Act. Under the unified fee structure, the Advisor is responsible for providing all investment advisory, custody, audit, administrative, compliance, recordkeeping, marketing, and shareholder services, or arranging and supervising third parties to provide such services. By contrast, most other funds are charged a variety of fees, including an investment advisory fee, a transfer agency fee, an administrative fee, distribution charges, and other expenses. Other than their investment advisory fees and any applicable Rule 12b-1 distribution fees, all other components of the total fees charged by these other funds may be increased without shareholder approval. The Board believes the unified fee structure is a benefit to Fund shareholders because it clearly discloses to shareholders the cost of owning Fund shares, and, since the unified fee cannot be increased without a vote of Fund shareholders, it shifts to the Advisor the risk of increased costs of operating the Fund and provides a direct incentive to minimize administrative inefficiencies. Part of the Board’s analysis of fee levels involves reviewing certain evaluative data compiled by an independent provider and comparing the Fund’s unified fee to the total expense ratio of peer funds. Given the broad proliferation of fee waivers to support positive money market fund yields and the wide variance of expenses waived, the Board recognized that net fee comparisons may not be a reliable analysis of fund expenses. With that in mind, the Board reviewed peer data both on a gross basis and net of applicable waivers. The Board concluded that the management fee paid by the Fund to the Advisor under the management agreement is reasonable in light of the services provided to the Fund.
Comparison to Fees and Services Provided to Other Clients of the Advisor. The Board also requested and received information from the Advisor concerning the nature of the services, fees, costs, and profitability of its advisory services to advisory clients other than the Fund. They
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observed that these varying types of client accounts require different services and involve different regulatory and entrepreneurial risks than the management of the Fund. The Board analyzed this information and concluded that the fees charged and services provided to the Fund were reasonable by comparison.
Payments to Intermediaries. The Trustees also requested and received a description of payments made to intermediaries by the Fund and the Advisor and services provided by intermediaries. These payments include various payments made by the Fund or the Advisor to different types of intermediaries and recordkeepers for distribution and service activities provided for the Fund. The Trustees reviewed such information and received representations from the Advisor that all such payments by the Fund were made pursuant to the Fund’s Rule 12b-1 Plan and that all such payments by the Advisor were made from the Advisor’s resources and reasonable profits. The Board found such payments to be reasonable in scope and purpose.
Collateral or “Fall-Out” Benefits Derived by the Advisor. The Board considered the existence of collateral benefits the Advisor may receive as a result of its relationship with the Fund. The Board noted that the Advisor’s primary business is managing mutual funds and it generally does not use fund or shareholder information to generate profits in other lines of business, and therefore does not derive any significant collateral benefits from them. The Board noted that the Advisor may receive proprietary research from broker-dealers that execute fund portfolio transactions. The Board also determined that the Advisor is able to provide investment management services to certain clients other than the Fund, at least in part, due to its existing infrastructure built to serve the fund complex. The Board noted that the assets of those other accounts are, where applicable, included with the assets of the Fund to determine breakpoints in the management fee schedule.
Existing Relationship. The Board also considered whether there was any reason for not continuing the existing arrangement with the Advisor. In this regard, the Board was mindful of the potential disruptions of the Fund’s operations and various risks, uncertainties, and other effects that could occur as a result of a decision not to continue such relationship. In particular, the Board recognized that most shareholders have invested in the Fund on the strength of the Advisor’s industry standing and reputation and in the expectation that the Advisor will have a continuing role in providing advisory services to the Fund.
Conclusion of the Trustees. As a result of this process, the Board, including all of the independent Trustees and assisted by the advice of independent legal counsel, taking into account all of the factors discussed above and the information provided by the Advisor and others in connection with its review and throughout the year, concluded that the management agreement between the Fund and the Advisor is fair and reasonable in light of the services provided and should be renewed.
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Additional Information |
Retirement Account Information
As required by law, distributions you receive from certain retirement accounts are subject to federal income tax withholding, unless you elect not to have withholding apply*. Tax will be withheld on the total amount withdrawn even though you may be receiving amounts that are not subject to withholding, such as nondeductible contributions. In such case, excess amounts of withholding could occur. You may adjust your withholding election so that a greater or lesser amount will be withheld.
If you don’t want us to withhold on this amount, you must notify us to not withhold the federal income tax. You may notify us in writing or in certain situations by telephone or through other electronic means. For systematic withdrawals, your withholding election will remain in effect until revoked or changed by filing a new election. You have the right to revoke your election at any time and change your withholding percentage for future distributions.
Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.
State tax will be withheld if, at the time of your distribution, your address is within one of the mandatory withholding states and you have federal income tax withheld (or as otherwise required by state law). State taxes will be withheld from your distribution in accordance with the respective state rules.
*Some 403(b), 457 and qualified retirement plan distributions may be subject to 20% mandatory withholding, as they are subject to special tax and withholding rules. Your plan administrator or plan sponsor is required to provide you with a special tax notice explaining those rules at the time you request a distribution. If applicable, federal and/or state taxes may be withheld from your distribution amount.
Proxy Voting Policies
Descriptions of the principles and policies that the fund's investment advisor uses in exercising the voting rights associated with the securities purchased and/or held by the fund are available without charge, upon request, by calling 1-800-345-2021 or visiting the "About Us" page of American Century Investments’ website at americancentury.com. A description of the policies is also available on the Securities and Exchange Commission’s website at sec.gov. Information regarding how the investment advisor voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the "About Us" page at americancentury.com. It is also available at sec.gov.
Quarterly Portfolio Disclosure
The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q. The fund’s Forms N-Q are available on the SEC’s website at sec.gov, and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The fund also makes its complete schedule of portfolio holdings for the most recent quarter of its fiscal year available on its website at americancentury.com and, upon request, by calling 1-800-345-2021.
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Other Tax Information
The following information is provided pursuant to provisions of the Internal Revenue Code.
The fund designates $1,265,159 as exempt interest dividends for the fiscal year ended August 31, 2018.
The fund hereby designates $1,100 as qualified short-term capital gain distributions for purposes of Internal Revenue Code Section 871 for the fiscal year ended August 31, 2018.
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Notes |
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Contact Us | americancentury.com | |
Automated Information Line | 1-800-345-8765 | |
Investor Services Representative | 1-800-345-2021 or 816-531-5575 | |
Investors Using Advisors | 1-800-378-9878 | |
Business, Not-For-Profit, Employer-Sponsored Retirement Plans | 1-800-345-3533 | |
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies | 1-800-345-6488 | |
Telecommunications Relay Service for the Deaf | 711 | |
American Century California Tax-Free and Municipal Funds | ||
Investment Advisor: American Century Investment Management, Inc. Kansas City, Missouri | ||
This report and the statements it contains are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. | ||
©2018 American Century Proprietary Holdings, Inc. All rights reserved. CL-ANN-90328 1810 |
ITEM 2. CODE OF ETHICS.
(a) | The registrant has adopted a Code of Ethics for Senior Financial Officers that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer, and persons performing similar functions. |
(b) | No response required. |
(c) | None. |
(d) | None. |
(e) | Not applicable. |
(f) | The registrant’s Code of Ethics for Senior Financial Officers was filed as Exhibit 12 (a)(1) to American Century Asset Allocation Portfolios, Inc.’s Annual Certified Shareholder Report on Form N-CSR, File No. 811-21591, on September 29, 2005, and is incorporated herein by reference. |
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a)(1) | The registrant's board has determined that the registrant has at least one audit committee financial expert serving on its audit committee. |
(a)(2) | Tanya S. Beder, Anne Casscells, Peter F. Pervere and Ronald J. Gilson are the registrant's designated audit committee financial experts. They are "independent" as defined in Item 3 of Form N-CSR. |
(a)(3) | Not applicable. |
(b) | No response required. |
(c) | No response required. |
(d) | No response required. |
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) | Audit Fees. |
The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years were as follows:
FY 2017: $126,399
FY 2018: $84,792
(b) | Audit-Related Fees. |
The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of this Item were as follows:
For services rendered to the registrant:
FY 2017:$0
FY 2018:$0
Fees required to be approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X (relating to certain engagements for non-audit services with the registrant’s investment adviser and its affiliates):
FY 2017:$0
FY 2018:$0
(c) | Tax Fees. |
The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning were as follows:
For services rendered to the registrant:
FY 2017: $0
FY 2018: $0
Fees required to be approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X (relating to certain engagements for non-audit services with the registrant’s investment adviser and its affiliates):
FY 2017: $0
FY 2018: $0
(d) | All Other Fees. |
The aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item were as follows:
For services rendered to the registrant:
FY 2017:$0
FY 2018:$0
Fees required to be approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X (relating to certain engagements for non-audit services with the registrant’s investment adviser and its affiliates):
FY 2017:$0
FY 2018:$0
(e)(1) | In accordance with paragraph (c)(7)(i)(A) of Rule 2-01 of Regulation S-X, before the accountant is engaged by the registrant to render audit or non-audit services, the engagement is approved by the registrant’s audit committee. Pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, the registrant’s audit committee also pre-approves its accountant’s engagements for non-audit services with the registrant’s investment adviser, its parent company, and any entity controlled by, or under common control with the investment adviser that provides ongoing services to the registrant, if the engagement relates directly to the operations and financial reporting of the registrant. |
(e)(2) | All services described in each of paragraphs (b) through (d) of this Item were pre-approved before the engagement by the registrant’s audit committee pursuant to paragraph (c)(7)(i)(A) of Rule 2-01 of Regulation S-X. Consequently, none of such services were required to be approved by the audit committee pursuant to paragraph (c)(7)(i)(C). |
(f) | The percentage of hours expended on the principal accountant’s engagement to audit the registrant’s financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant’s full-time, permanent employees was less than 50%. |
(g) | The aggregate non-audit fees billed by the registrant’s accountant for services rendered to the registrant, and rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for each of the last two fiscal years of the registrant were as follows: |
FY 2017: $141,746
FY 2018: $128,203
(h) | The registrant’s investment adviser and accountant have notified the registrant’s audit committee of all non-audit services that were rendered by the registrant’s accountant to the registrant’s investment adviser, its parent company, and any entity controlled by, or under common control with the investment adviser that provides services to the registrant, which services were not required to be pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X. The notification provided to the registrant’s audit committee included sufficient details regarding such services to allow the registrant’s audit committee to consider the continuing independence of its principal accountant. |
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. INVESTMENTS.
(a) | The schedule of investments is included as part of the report to stockholders filed under Item 1 of this Form. |
(b) | Not applicable. |
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
During the reporting period, there were no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board.
ITEM 11. CONTROLS AND PROCEDURES.
(a) | The registrant's principal executive officer and principal financial officer have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) are effective based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report. |
(b) | There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. |
ITEM 12. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 13. EXHIBITS.
(a)(1) | Registrant’s Code of Ethics for Senior Financial Officers, which is the subject of the disclosure required by Item 2 of Form N-CSR, was filed as Exhibit 12(a)(1) to American Century Asset Allocation Portfolios, Inc.’s Certified Shareholder Report on Form N-CSR, File No. 811-21591, on September 29, 2005. |
(a)(2) | Separate certifications by the registrant’s principal executive officer and principal financial officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 and Rule 30a-2(a) under the Investment Company Act of 1940, are filed and attached hereto as EX-99.CERT. |
(a)(3) | Not applicable. |
(a)(4) | Not applicable. |
(b) | A certification by the registrant’s chief executive officer and chief financial officer, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, is furnished and attached hereto as EX-99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant: | American Century California Tax-Free and Municipal Funds | |||
By: | /s/ Jonathan S. Thomas | |||
Name: | Jonathan S. Thomas | |||
Title: | President | |||
Date: | October 25, 2018 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ Jonathan S. Thomas | ||
Name: Jonathan S. Thomas | |||
Title: President | |||
(principal executive officer) | |||
Date: | October 25, 2018 |
By: | /s/ R. Wes Campbell | ||
Name: R. Wes Campbell | |||
Title: Treasurer, and | |||
Chief Financial Officer | |||
(principal financial officer) | |||
Date: | October 25, 2018 |