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 811-3725
Fidelity California Municipal Trust
(Exact name of registrant as specified in charter)
82 Devonshire St., Boston, Massachusetts 02109
(Address of principal executive offices) (Zip code)
Eric D. Roiter, Secretary
82 Devonshire St.
Boston, Massachusetts 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: 617-563-7000
Date of fiscal year end: | February 28 |
Date of reporting period: | August 31, 2007 |
Item 1. Reports to Stockholders
Fidelity®
California
Municipal Income
Fund
Semiannual Report
August 31, 2007
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | Ned Johnson's message to shareholders. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, | |
Notes | Notes to the financial statements. | |
Board Approval of Investment Advisory Contracts and Management Fees |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent quarterly holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com/holdings or http://advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Many stock and bond markets around the world have been unsettled of late; however, volatility can often lead to opportunity for patient investors. Financial markets are always unpredictable, but there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (March 1, 2007 to August 31, 2007).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. 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 the 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 transaction costs. Therefore, the second line of 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.
Beginning | Ending | Expenses Paid | |
Class A | |||
Actual | $ 1,000.00 | $ 993.10 | $ 3.61 |
Hypothetical A | $ 1,000.00 | $ 1,021.52 | $ 3.66 |
Class T | |||
Actual | $ 1,000.00 | $ 993.00 | $ 3.71 |
Hypothetical A | $ 1,000.00 | $ 1,021.42 | $ 3.76 |
Class B | |||
Actual | $ 1,000.00 | $ 989.70 | $ 7.00 |
Hypothetical A | $ 1,000.00 | $ 1,018.10 | $ 7.10 |
Beginning | Ending | Expenses Paid | |
Class C | |||
Actual | $ 1,000.00 | $ 989.20 | $ 7.50 |
Hypothetical A | $ 1,000.00 | $ 1,017.60 | $ 7.61 |
California Municipal Income | |||
Actual | $ 1,000.00 | $ 994.30 | $ 2.36 |
Hypothetical A | $ 1,000.00 | $ 1,022.77 | $ 2.39 |
Institutional Class | |||
Actual | $ 1,000.00 | $ 994.10 | $ 2.56 |
Hypothetical A | $ 1,000.00 | $ 1,022.57 | $ 2.59 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).
Annualized | |
Class A | .72% |
Class T | .74% |
Class B | 1.40% |
Class C | 1.50% |
California Municipal Income | .47% |
Institutional Class | .51% |
Semiannual Report
Investment Changes
Top Five Sectors as of August 31, 2007 | ||
% of fund's | % of fund's net assets | |
General Obligations | 41.3 | 34.9 |
Transportation | 10.8 | 10.2 |
Escrowed/Pre-Refunded | 9.3 | 8.7 |
Water & Sewer | 7.5 | 6.7 |
Education | 7.0 | 7.5 |
Weighted Average Maturity as of August 31, 2007 | ||
6 months ago | ||
Years | 7.7 | 6.5 |
The weighted average maturity is based on the dollar-weighted average length of time until principal payments are expected or until securities reach maturity. Effective May 2007, the calculation was modified taking into account any maturity shortening feature such as a call, refunding or redemption provision. The prior period figure reflects this change. |
Duration as of August 31, 2007 | ||
6 months ago | ||
Years | 6.7 | 6.2 |
Duration shows how much a bond fund's price fluctuates with changes in comparable interest rates. If rates rise 1%, for example, a fund with a five-year duration is likely to lose about 5% of its value. Other factors also can influence a bond fund's performance and share price. Accordingly, a bond fund's actual performance may differ from this example. |
Quality Diversification (% of fund's net assets) | |||||||
As of August 31, 2007 | As of February 28, 2007 | ||||||
![]() | AAA 58.0% | ![]() | AAA 57.9% | ||||
![]() | AA,A 37.8% | ![]() | AA,A 34.1% | ||||
![]() | BBB 2.5% | ![]() | BBB 4.6% | ||||
![]() | BB and Below 0.8% | ![]() | BB and Below 0.3% | ||||
![]() | Not Rated 1.7% | ![]() | Not Rated 2.0% | ||||
![]() | Short-Term | ![]() | Short-Term |
We have used ratings from Moody's® Investors Services, Inc. Where Moody's ratings are not available, we have used S&P® ratings. |
*Short-Term Investments and Net Other Assets are not included in the pie chart.
Semiannual Report
Investments August 31, 2007 (Unaudited)
Showing Percentage of Net Assets
Municipal Bonds - 100.8% | ||||
Principal Amount (000s) | Value (000s) | |||
California - 99.6% | ||||
ABAG Fin. Auth. for Nonprofit Corp. Rev. (Hamlin School Proj.): | ||||
4.625% 8/1/16 | $ 380 | $ 361 | ||
4.625% 8/1/17 | 405 | 381 | ||
5% 8/1/18 | 530 | 511 | ||
5% 8/1/19 | 555 | 531 | ||
5% 8/1/20 | 585 | 556 | ||
5% 8/1/23 | 1,940 | 1,811 | ||
ABC Unified School District: | ||||
Series C, 0% 8/1/31 (FGIC Insured) | 2,720 | 816 | ||
0% 8/1/32 (FGIC Insured) | 3,760 | 1,070 | ||
Alameda Corridor Trans. Auth. Rev. Series A, 5.25% 10/1/21 (MBIA Insured) | 7,575 | 7,842 | ||
Alameda County Ctfs. of Prtn.: | ||||
(Santa Rita Jail Proj.) Series A: | ||||
5% 12/1/18 (AMBAC Insured) | 2,645 | 2,819 | ||
5% 12/1/20 (AMBAC Insured) | 2,810 | 2,943 | ||
0% 6/15/17 (MBIA Insured) | 2,310 | 1,504 | ||
Alhambra Unified School District Series 2004 A, 5% 8/1/25 (FGIC Insured) | 1,880 | 1,936 | ||
Anaheim Pub. Fing. Auth. Lease Rev. (Anaheim Pub. Impt. Proj.): | ||||
Series A, 6% 9/1/24 (FSA Insured) | 1,000 | 1,159 | ||
Series C: | ||||
0% 9/1/19 (FSA Insured) | 1,285 | 743 | ||
0% 9/1/22 (FSA Insured) | 5,150 | 2,511 | ||
Antelope Valley Cmnty. College District 5.25% 8/1/39 (MBIA Insured) (b) | 3,500 | 3,637 | ||
Azusa Unified School District 5.375% 7/1/16 (FSA Insured) | 1,225 | 1,310 | ||
Bay Area Infrastructure Fing. Auth.: | ||||
5% 8/1/17 (AMBAC Insured) | 5,000 | 5,205 | ||
5% 8/1/17 (FGIC Insured) | 5,030 | 5,343 | ||
Burbank Glendale Pasadena Arpt. Auth. Rev. Series 2005 B: | ||||
5% 7/1/12 (AMBAC Insured) (d) | 1,840 | 1,917 | ||
5.25% 7/1/14 (AMBAC Insured) (d) | 2,035 | 2,164 | ||
5.25% 7/1/16 (AMBAC Insured) (d) | 1,255 | 1,339 | ||
5.25% 7/1/17 (AMBAC Insured) (d) | 1,370 | 1,455 | ||
Burbank Unified School District: | ||||
Series B, 0% 8/1/20 (FGIC Insured) | 3,835 | 2,116 | ||
Series C, 0% 8/1/20 (FGIC Insured) | 5,865 | 3,237 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
California - continued | ||||
Butte-Glenn Cmnty. College District Series A, 5.5% 8/1/18 (MBIA Insured) | $ 1,085 | $ 1,171 | ||
Cabrillo Cmnty. College District Series A, 5.25% 8/1/15 (MBIA Insured) | 1,725 | 1,865 | ||
Cabrillo Unified School District Series A: | ||||
0% 8/1/10 (AMBAC Insured) | 2,150 | 1,929 | ||
0% 8/1/12 (AMBAC Insured) | 2,800 | 2,317 | ||
0% 8/1/17 (AMBAC Insured) | 1,000 | 650 | ||
0% 8/1/18 (AMBAC Insured) | 2,000 | 1,234 | ||
California Dept. of Wtr. Resources Pwr. Supply Rev. Series A: | ||||
5% 5/1/17 | 1,000 | 1,040 | ||
5.5% 5/1/14 (AMBAC Insured) | 7,935 | 8,582 | ||
5.5% 5/1/15 (AMBAC Insured) | 9,000 | 9,702 | ||
6% 5/1/13 | 2,320 | 2,541 | ||
6% 5/1/14 | 7,500 | 8,200 | ||
6% 5/1/14 (MBIA Insured) | 2,000 | 2,201 | ||
California Dept. of Wtr. Resources Rev. (Wtr. Sys. Proj.) Series J1, 7% 12/1/12 | 730 | 841 | ||
California Econ. Recovery Series A: | ||||
5% 7/1/15 | 12,275 | 13,076 | ||
5% 7/1/15 (MBIA Insured) | 9,300 | 9,936 | ||
5.25% 7/1/13 | 3,000 | 3,227 | ||
5.25% 7/1/14 | 3,540 | 3,830 | ||
California Edl. Facilities Auth. Rev.: | ||||
(Chapman Univ. Proj.) 5.375% 10/1/16 (AMBAC Insured) | 510 | 516 | ||
(College & Univ. Fing. Prog.): | ||||
5% 2/1/16 | 1,600 | 1,587 | ||
5% 2/1/17 | 1,000 | 988 | ||
(Loyola Marymount Univ. Proj.) 0% 10/1/16 (MBIA Insured) | 2,280 | 1,550 | ||
(Pomona College Proj.) Series A, 0% 7/1/38 | 3,155 | 646 | ||
(Santa Clara Univ. Proj.): | ||||
5.25% 9/1/17 (AMBAC Insured) | 1,000 | 1,097 | ||
5.25% 9/1/26 | 7,910 | 8,307 | ||
(Scripps College Proj.): | ||||
Series 2001, 5.25% 8/1/26 | 1,000 | 1,020 | ||
5.125% 2/1/30 | 6,000 | 6,027 | ||
(Stanford Univ. Proj.): | ||||
Series N, 5.2% 12/1/27 | 20,000 | 20,235 | ||
Series O, 5.125% 1/1/31 | 5,000 | 5,053 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
California - continued | ||||
California Gen. Oblig.: | ||||
Series 1, 5% 9/1/17 | $ 2,000 | $ 2,113 | ||
Series 1992, 6.25% 9/1/12 (FGIC Insured) | 2,000 | 2,178 | ||
Series 2005, 5.5% 6/1/28 | 275 | 282 | ||
Series 2007: | ||||
5.625% 5/1/20 | 150 | 157 | ||
5.625% 5/1/20 (Pre-Refunded to 5/1/10 @ 101) (e) | 255 | 270 | ||
5.625% 5/1/26 | 215 | 223 | ||
5.625% 5/1/26 (Pre-Refunded to 5/1/10 @ 101) (e) | 80 | 85 | ||
5.75% 5/1/30 | 160 | 166 | ||
5.75% 5/1/30 (Pre-Refunded to 5/1/10 @ 101) (e) | 60 | 64 | ||
4.5% 8/1/30 | 5,000 | 4,674 | ||
4.5% 10/1/36 | 5,000 | 4,554 | ||
5% 2/1/11 | 3,000 | 3,122 | ||
5% 11/1/12 | 4,105 | 4,304 | ||
5% 3/1/13 | 1,095 | 1,157 | ||
5% 3/1/15 | 3,050 | 3,242 | ||
5% 8/1/18 | 48,010 | 50,622 | ||
5% 8/1/21 | 5,000 | 5,174 | ||
5% 12/1/21 | 10,000 | 10,343 | ||
5% 2/1/23 | 1,095 | 1,116 | ||
5% 2/1/26 (AMBAC Insured) | 1,500 | 1,531 | ||
5% 3/1/26 | 2,800 | 2,841 | ||
5% 6/1/26 | 4,300 | 4,357 | ||
5% 6/1/27 (AMBAC Insured) | 2,800 | 2,866 | ||
5% 6/1/29 | 5,005 | 5,040 | ||
5% 2/1/31 (MBIA Insured) | 2,800 | 2,841 | ||
5% 3/1/31 | 4,600 | 4,622 | ||
5% 4/1/31 (AMBAC Insured) | 5 | 5 | ||
5% 6/1/31 | 2,000 | 2,009 | ||
5% 12/1/31 (MBIA Insured) | 2,000 | 2,035 | ||
5% 9/1/32 | 4,200 | 4,218 | ||
5% 9/1/32 | 10,000 | 10,043 | ||
5% 10/1/32 (MBIA Insured) | 1,000 | 1,017 | ||
5% 8/1/33 | 3,400 | 3,411 | ||
5% 9/1/33 | 10,000 | 10,036 | ||
5% 8/1/35 | 6,200 | 6,212 | ||
5% 9/1/35 | 9,400 | 9,419 | ||
5.125% 11/1/24 | 2,800 | 2,869 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
California - continued | ||||
California Gen. Oblig.: - continued | ||||
5.125% 2/1/26 | $ 2,800 | $ 2,859 | ||
5.25% 2/1/11 | 5,790 | 6,071 | ||
5.25% 3/1/11 | 1,405 | 1,475 | ||
5.25% 3/1/12 | 3,000 | 3,181 | ||
5.25% 10/1/14 | 300 | 300 | ||
5.25% 2/1/15 | 2,315 | 2,470 | ||
5.25% 2/1/15 (MBIA Insured) | 5,040 | 5,396 | ||
5.25% 2/1/16 | 7,500 | 7,984 | ||
5.25% 2/1/16 (MBIA Insured) | 4,050 | 4,308 | ||
5.25% 10/1/17 | 260 | 260 | ||
5.25% 11/1/18 | 3,000 | 3,179 | ||
5.25% 2/1/20 | 6,805 | 7,132 | ||
5.25% 2/1/22 | 2,020 | 2,103 | ||
5.25% 11/1/26 | 1,000 | 1,032 | ||
5.25% 2/1/27 (MBIA Insured) | 5,490 | 5,696 | ||
5.25% 4/1/27 | 5 | 5 | ||
5.25% 2/1/28 | 5,085 | 5,225 | ||
5.25% 4/1/29 | 5 | 5 | ||
5.25% 11/1/29 | 5,000 | 5,134 | ||
5.25% 4/1/30 | 35 | 36 | ||
5.25% 2/1/33 | 8,150 | 8,322 | ||
5.25% 12/1/33 | 105 | 108 | ||
5.25% 12/1/33 (Pre-Refunded to 6/1/14 @ 100) (e) | 5,395 | 5,863 | ||
5.375% 4/1/15 (MBIA Insured) | 35 | 37 | ||
5.5% 6/1/10 | 1,625 | 1,701 | ||
5.5% 3/1/11 (XL Cap. Assurance, Inc. Insured) | 3,050 | 3,229 | ||
5.5% 5/1/13 (MBIA Insured) | 100 | 106 | ||
5.5% 4/1/28 | 5 | 5 | ||
5.5% 4/1/30 | 25 | 26 | ||
5.5% 11/1/33 | 34,870 | 36,534 | ||
5.75% 10/1/10 | 7,325 | 7,759 | ||
5.75% 12/1/10 | 2,500 | 2,656 | ||
6% 4/1/18 | 2,545 | 2,912 | ||
6.75% 8/1/10 | 5,675 | 6,141 | ||
6.75% 8/1/12 | 1,100 | 1,242 | ||
California Health Facilities Fing. Auth. Rev.: | ||||
(Catholic Healthcare West Proj.) Series I, 4.95%, tender 7/1/14 (c) | 5,000 | 5,142 | ||
(Cedars-Sinai Med. Ctr. Proj.) 5% 11/15/14 | 1,485 | 1,547 | ||
(Cottage Health Sys. Proj.) Series B, 5.25% 11/1/18 (MBIA Insured) | 1,260 | 1,331 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
California - continued | ||||
California Hsg. Fin. Agcy. Rev.: | ||||
Series 1983 A, 0% 2/1/15 | $ 7,592 | $ 4,214 | ||
Series 1983 B, 0% 8/1/15 | 95 | 43 | ||
Series J, 4.85% 8/1/27 (MBIA Insured) (d) | 865 | 870 | ||
California Infrastructure & Econ. Dev. Bank Rev.: | ||||
(YMCA Metropolitan L.A. Proj.) Series 2001: | ||||
5.25% 2/1/26 (AMBAC Insured) | 2,000 | 2,085 | ||
5.25% 2/1/32 (AMBAC Insured) | 6,295 | 6,533 | ||
Series B, 5% 5/1/19 (FGIC Insured) | 1,000 | 1,055 | ||
Series C, 3.9%, tender 12/1/11 (c) | 2,150 | 2,167 | ||
5% 12/1/27 | 1,080 | 1,083 | ||
5% 12/1/32 | 1,000 | 993 | ||
5% 10/1/33 | 7,235 | 7,360 | ||
5% 12/1/42 | 3,000 | 2,941 | ||
California Poll. Cont. Fing. Auth. Ctfs. of Prtn. (San Diego Gas & Elec. Co. Proj.) 5.9% 6/1/14 (MBIA Insured) | 4,000 | 4,477 | ||
California Poll. Cont. Fing. Auth. Solid Waste Disp. Rev. (Waste Mgmt., Inc. Proj.): | ||||
Series A, 5.125%, tender 5/1/14 (c)(d) | 9,000 | 9,073 | ||
Series A1, 4.7%, tender 4/1/12 (c)(d) | 3,250 | 3,226 | ||
California Pub. Works Board Lease Rev.: | ||||
(Butterfield State Office Complex Proj.) Series 2005 A: | ||||
5% 6/1/13 | 2,500 | 2,641 | ||
5% 6/1/14 | 2,000 | 2,119 | ||
5.25% 6/1/24 | 5,400 | 5,569 | ||
5.25% 6/1/25 | 5,000 | 5,144 | ||
5.25% 6/1/30 | 4,000 | 4,073 | ||
(California Cmnty. College Projs.) Series A, 5.25% 12/1/16 | 4,450 | 4,564 | ||
(California State Univ. Proj.): | ||||
Series 2006 G: | ||||
5% 11/1/20 | 1,825 | 1,883 | ||
5% 11/1/21 | 2,020 | 2,074 | ||
Series A, 5% 10/1/14 (FGIC Insured) | 2,700 | 2,887 | ||
(Capitol East End Complex-Blocks 171-174 & 225 Proj.) Series A, 5.25% 12/1/18 (AMBAC Insured) | 5,000 | 5,280 | ||
(Coalinga State Hosp. Proj.): | ||||
Series 2004 A, 5.5% 6/1/17 | 9,980 | 10,734 | ||
Series A: | ||||
5.25% 6/1/12 | 2,485 | 2,636 | ||
5.5% 6/1/15 | 1,000 | 1,083 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
California - continued | ||||
California Pub. Works Board Lease Rev.: - continued | ||||
(Dept. of Corrections & Rehab. Proj.) Series F: | ||||
5% 11/1/15 (FGIC Insured) | $ 2,455 | $ 2,633 | ||
5% 11/1/16 (FGIC Insured) | 2,000 | 2,147 | ||
(Dept. of Corrections State Prison Proj.) Series E: | ||||
5.5% 6/1/15 (FSA Insured) | 2,000 | 2,150 | ||
5.5% 6/1/15 (MBIA Insured) | 1,000 | 1,075 | ||
(Dept. of Corrections, Madera State Prison Proj.) Series E, 5.5% 6/1/15 | 8,775 | 9,387 | ||
(Dept. of Corrections, Monterey County State Prison Proj.) Series C: | ||||
5.5% 6/1/15 | 6,100 | 6,576 | ||
5.5% 6/1/17 (MBIA Insured) | 4,775 | 5,164 | ||
(Dept. of Corrections, Susanville State Prison Proj.) Series D, 5.25% 6/1/15 (FSA Insured) | 4,050 | 4,355 | ||
(Dept. of Gen. Services Butterfield Proj.) Series A, 5% 6/1/23 | 2,900 | 2,944 | ||
(Kern County at Delano II Proj.) Series 2003 C, 5.5% 6/1/13 | 2,000 | 2,164 | ||
(Ten Administrative Segregation Hsg. Units Proj.) Series 2002 A, 5.25% 3/1/18 (AMBAC Insured) | 2,500 | 2,639 | ||
(Univ. of California Research Proj.): | ||||
Series E, 5% 10/1/23 | 2,410 | 2,479 | ||
5% 11/1/25 (MBIA Insured) | 5,165 | 5,304 | ||
(Univ. of California Revs. Proj.) Series E 5.25% 10/1/21 | 2,900 | 3,041 | ||
(Various California State Univ. Projs.) Series B, 6.4% 12/1/09 | 3,700 | 3,814 | ||
Series 2005 H, 5% 6/1/16 | 5,000 | 5,258 | ||
Series 2005 J, 5.25% 1/1/16 (AMBAC Insured) | 3,500 | 3,799 | ||
Series 2005 K, 5% 11/1/17 | 5,625 | 5,893 | ||
California State Univ. Rev.: | ||||
(Systemwide Proj.) Series A: | ||||
5.375% 11/1/18 (AMBAC Insured) | 1,290 | 1,384 | ||
5.5% 11/1/16 (AMBAC Insured) | 1,500 | 1,620 | ||
5% 11/1/16 (FSA Insured) | 1,000 | 1,082 | ||
5% 11/1/17 (FSA Insured) | 1,225 | 1,325 | ||
California Statewide Communities Dev. Auth. Poll. Cont. Rev. (Southern California Edison Co.) 4.1%, tender 4/1/13 (XL Cap. Assurance, Inc. Insured) (c) | 9,700 | 9,801 | ||
California Statewide Communities Dev. Auth. Rev.: | ||||
(Cmnty. Hosp. Monterey Peninsula Proj.) Series B, 5.25% 6/1/23 (FSA Insured) | 1,800 | 1,881 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
California - continued | ||||
California Statewide Communities Dev. Auth. Rev.: - continued | ||||
(Daughters of Charity Health Sys. Proj.): | ||||
Series G, 5.25% 7/1/12 | $ 900 | $ 936 | ||
5.25% 7/1/13 | 1,475 | 1,539 | ||
(Kaiser Fund Hosp./Health Place, Inc. Proj.) Series 2002 C, 3.85%, tender 6/1/12 (c) | 3,000 | 2,951 | ||
(Kaiser Permanente Health Sys. Proj.): | ||||
Series 2004 H, 2.625%, tender 5/1/08 (c) | 1,795 | 1,780 | ||
Series B, 4.3712% 4/1/36 (c) | 6,500 | 5,852 | ||
Series I, 3.45%, tender 5/1/11 (c) | 2,750 | 2,677 | ||
(Kaiser Permanente Proj.) Series A, 4.75% 4/1/33 | 2,000 | 1,884 | ||
(Los Angeles Orthopaedic Hosp. Foundation Prog.) 5.75% 6/1/30 (AMBAC Insured) | 10,000 | 10,115 | ||
(Sutter Health Systems Proj.): | ||||
Series B, 5.625% 8/15/42 | 5,000 | 5,126 | ||
5% 11/15/43 (MBIA Insured) | 4,125 | 4,144 | ||
(Thomas Jefferson School of Law Proj.) 7.75% 10/1/31 (Pre-Refunded to 10/1/11 @ 101) (e) | 1,460 | 1,669 | ||
California Statewide Communities Dev. Auth. Rev. Ctfs. of Prtn. (Catholic Health Care West Proj.): | ||||
6% 7/1/09 (Escrowed to Maturity) (e) | 300 | 308 | ||
6% 7/1/09 (Escrowed to Maturity) (e) | 985 | 1,011 | ||
Carlsbad Unified School District 0% 11/1/15 (FGIC Insured) | 1,700 | 1,210 | ||
Castaic Lake Wtr. Agcy. Ctfs. of Prtn. (Wtr. Sys. Impt. Proj.) Series A, 7% 8/1/11 (MBIA Insured) | 1,500 | 1,679 | ||
Clovis Pub. Fing. Auth. Wastewtr. Rev. 5% 8/1/35 (MBIA Insured) | 3,295 | 3,353 | ||
Colton Joint Unified School District Series 2001 C, 5.25% 2/1/22 (FGIC Insured) | 1,200 | 1,272 | ||
Commerce Refuse To Energy Auth. Rev.: | ||||
5.5% 7/1/14 (MBIA Insured) | 1,545 | 1,700 | ||
5.5% 7/1/15 (MBIA Insured) | 2,685 | 2,972 | ||
Contra Costa County Ctfs. of Prtn. (Merrithew Memorial Hosp. Proj.) 0% 11/1/14 (Escrowed to Maturity) (e) | 3,000 | 2,271 | ||
Corona-Norco Unified School District Series A: | ||||
5% 8/1/19 (FSA Insured) | 2,570 | 2,725 | ||
5% 8/1/22 (FSA Insured) | 1,470 | 1,534 | ||
5% 8/1/25 (FSA Insured) | 1,435 | 1,485 | ||
5% 8/1/26 (FSA Insured) | 2,000 | 2,065 | ||
5% 8/1/27 (FSA Insured) | 1,785 | 1,838 | ||
5% 8/1/31 (FSA Insured) | 5,000 | 5,118 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
California - continued | ||||
Ctr. Unified School District: | ||||
Series 1997 C, 0% 9/1/20 (MBIA Insured) | $ 2,000 | $ 1,099 | ||
Series C, 0% 9/1/18 (MBIA Insured) | 2,000 | 1,229 | ||
Cucamonga County Wtr. District 5% 9/1/36 (MBIA Insured) | 2,890 | 2,934 | ||
Davis Spl. Tax Rev.: | ||||
5% 9/1/11 (AMBAC Insured) | 595 | 623 | ||
5% 9/1/12 (AMBAC Insured) | 625 | 659 | ||
5% 9/1/13 (AMBAC Insured) | 655 | 695 | ||
5% 9/1/14 (AMBAC Insured) | 690 | 735 | ||
5% 9/1/15 (AMBAC Insured) | 725 | 774 | ||
5% 9/1/18 (AMBAC Insured) | 835 | 882 | ||
5% 9/1/20 (AMBAC Insured) | 925 | 964 | ||
5% 9/1/22 (AMBAC Insured) | 1,020 | 1,053 | ||
Duarte Ctfs. of Prtn. Series A: | ||||
5% 4/1/11 | 2,780 | 2,832 | ||
5% 4/1/12 | 4,210 | 4,285 | ||
5% 4/1/13 | 1,830 | 1,862 | ||
5.25% 4/1/09 | 1,600 | 1,624 | ||
East Bay Muni. Util. District Wtr. Sys. Rev. Series 2005 A, 5% 6/1/35 (MBIA Insured) | 15,600 | 15,920 | ||
El Centro Fing. Auth. Wastewtr. Series A, 5.25% 10/1/35 (FSA Insured) | 8,340 | 8,657 | ||
Elk Grove Fin. Auth. Spl. Tax Rev. 5% 9/1/17 (AMBAC Insured) | 2,420 | 2,557 | ||
Elk Grove Unified School District Spl. Tax (Cmnty. Facilities District #1 Proj.) 6.5% 12/1/24 (AMBAC Insured) | 4,025 | 4,958 | ||
Empire Union School District Spl. Tax (Cmnty. Facilities District No. 1987 Proj.) Series 1A: | ||||
0% 10/1/24 (AMBAC Insured) | 1,665 | 721 | ||
0% 10/1/25 (AMBAC Insured) | 1,665 | 683 | ||
Encinitas Union School District: | ||||
0% 8/1/10 (MBIA Insured) | 1,000 | 897 | ||
0% 8/1/21 (MBIA Insured) | 1,000 | 521 | ||
Escondido Union High School District 0% 11/1/16 (Escrowed to Maturity) (e) | 3,500 | 2,412 | ||
Fairfield-Suisun Swr. District Swr. Rev. Series A, 0% 5/1/09 (MBIA Insured) | 2,080 | 1,956 | ||
Fairfield-Suisun Unified School District 5.5% 8/1/28 (MBIA Insured) | 3,000 | 3,204 | ||
Fillmore Pub. Fing. Auth. Rev. (Wtr. Recycling Fing. Proj.) 5% 5/1/37 (CDC IXIS Finl. Guaranty Insured) | 2,500 | 2,530 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
California - continued | ||||
Folsom Cordova Unified School District School Facilities Impt. District #1 Series A, 0% 10/1/20 (MBIA Insured) | $ 1,315 | $ 720 | ||
Foothill-De Anza Cmnty. College District: | ||||
0% 8/1/15 (MBIA Insured) | 2,430 | 1,755 | ||
0% 8/1/19 (MBIA Insured) | 5,365 | 3,151 | ||
0% 8/1/20 (MBIA Insured) | 6,425 | 3,568 | ||
Foothill/Eastern Trans. Corridor Agcy. Toll Road Rev.: | ||||
Series A: | ||||
0% 1/1/15 (Escrowed to Maturity) (e) | 18,535 | 13,849 | ||
0% 1/1/18 (Escrowed to Maturity) (e) | 1,000 | 636 | ||
5% 1/1/35 (MBIA Insured) | 24,070 | 24,289 | ||
0% 1/15/27 (a) | 4,000 | 3,671 | ||
0% 1/15/27 (MBIA Insured) (a) | 4,500 | 4,330 | ||
0% 1/15/29 (a) | 4,000 | 3,657 | ||
5% 1/15/16 (MBIA Insured) | 5,860 | 6,073 | ||
5.75% 1/15/40 | 8,155 | 8,234 | ||
Fremont Unified School District, Alameda County Series F, 0% 8/1/09 (MBIA Insured) | 1,000 | 931 | ||
Fullerton Univ. Foundation Auxiliary Organization Rev. Series A: | ||||
5.75% 7/1/25 (MBIA Insured) | 1,250 | 1,325 | ||
5.75% 7/1/30 (MBIA Insured) | 1,000 | 1,060 | ||
Glendora Unified School District Series 2005 A, 5.25% 8/1/26 (MBIA Insured) | 1,000 | 1,052 | ||
Golden State Tobacco Securitization Corp. Tobacco Settlement Rev.: | ||||
Series 2003 A1: | ||||
5% 6/1/21 (Pre-Refunded to 6/1/13 @ 100) (e) | 2,120 | 2,143 | ||
6.625% 6/1/40 (Pre-Refunded to 6/1/13 @ 100) (e) | 2,900 | 3,314 | ||
Series 2003 B, 5% 6/1/43 (Pre-Refunded to 6/1/13 @ 100) (e) | 5,000 | 5,299 | ||
Series A: | ||||
5% 6/1/45 | 13,425 | 13,052 | ||
5% 6/1/45 (FGIC Insured) | 3,000 | 3,015 | ||
Series A-1: | ||||
5% 6/1/11 | 1,500 | 1,531 | ||
5% 6/1/13 | 1,000 | 1,019 | ||
5% 6/1/14 | 2,000 | 2,031 | ||
5% 6/1/15 | 1,000 | 1,013 | ||
Series A1: | ||||
5% 6/1/12 | 1,400 | 1,428 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
California - continued | ||||
Golden State Tobacco Securitization Corp. Tobacco Settlement Rev.: - continued | ||||
Series A1: | ||||
5% 6/1/33 | $ 3,000 | $ 2,715 | ||
Series B: | ||||
5% 6/1/11 (Escrowed to Maturity) (e) | 3,610 | 3,776 | ||
5.5% 6/1/43 (Pre-Refunded to 6/1/13 @ 100) (e) | 6,300 | 6,837 | ||
Golden West Schools Fing. Auth. Rev. Series A, 0% 8/1/18 (MBIA Insured) | 2,750 | 1,687 | ||
Indio Pub. Fing. Auth. Lease Rev. Series B, 3.8%, tender 11/1/12 (AMBAC Insured) (c) | 2,500 | 2,502 | ||
La Quinta Redev. Agcy. Tax. Allocation (Area #1 Redev. Proj.) 7.3% 9/1/11 (MBIA Insured) | 555 | 628 | ||
Lancaster Fing. Auth. Tax Allocation Rev. 5% 2/1/31 (AMBAC Insured) | 3,445 | 3,486 | ||
Long Beach Hbr. Rev. Series A: | ||||
5% 5/15/14 (FGIC Insured) (d) | 2,000 | 2,102 | ||
5% 5/15/15 (FGIC Insured) (d) | 1,000 | 1,043 | ||
5% 5/15/22 (MBIA Insured) (d) | 2,735 | 2,771 | ||
6% 5/15/10 (FGIC Insured) (d) | 1,000 | 1,052 | ||
6% 5/15/12 (FGIC Insured) (d) | 3,500 | 3,800 | ||
Los Angeles Cmnty. Redev. Agcy. Lease Rev. (Vermont Manchester Social Services Proj.) 5% 9/1/21 (AMBAC Insured) | 2,805 | 2,874 | ||
Los Angeles County Ctfs. of Prtn.: | ||||
(Correctional Facilities Proj.) 0% 9/1/13 (Escrowed to Maturity) (e) | 3,380 | 2,685 | ||
(Disney Parking Proj.): | ||||
0% 3/1/10 | 2,000 | 1,812 | ||
0% 3/1/11 | 1,950 | 1,692 | ||
0% 3/1/12 | 2,180 | 1,805 | ||
0% 3/1/13 | 6,490 | 5,122 | ||
0% 9/1/14 (AMBAC Insured) | 3,860 | 2,895 | ||
0% 3/1/18 | 3,000 | 1,809 | ||
0% 3/1/19 | 3,200 | 1,821 | ||
0% 3/1/20 | 1,000 | 536 | ||
Los Angeles County Schools Regionalized Bus. Svcs. Corp. Ctfs. of Prtn. (Pooled Fing. Prog.) Series 2003 B: | ||||
5.375% 9/1/16 (FSA Insured) | 1,045 | 1,128 | ||
5.375% 9/1/17 (FSA Insured) | 1,095 | 1,180 | ||
5.375% 9/1/18 (FSA Insured) | 1,155 | 1,236 | ||
5.375% 9/1/19 (FSA Insured) | 1,210 | 1,289 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
California - continued | ||||
Los Angeles Ctfs. of Prtn. (Dept. Pub. Social Svcs. Proj.) Series A, 5.5% 8/1/24 (AMBAC Insured) | $ 3,700 | $ 3,836 | ||
Los Angeles Dept. Arpt. Rev.: | ||||
(Los Angeles Int'l. Arpt. Proj.) Series D, 5.625% 5/15/12 (FGIC Insured) (d) | 290 | 290 | ||
Series 2006 A: | ||||
5% 5/15/17 (MBIA Insured) (d) | 3,990 | 4,144 | ||
5% 5/15/18 (MBIA Insured) (d) | 1,410 | 1,460 | ||
Series A: | ||||
5% 5/15/16 (MBIA Insured) (d) | 1,000 | 1,055 | ||
5.25% 5/15/19 (FGIC Insured) | 3,000 | 3,147 | ||
Los Angeles Dept. of Wtr. & Pwr. Elec. Plant Rev.: | ||||
4.75% 8/15/12 (Escrowed to Maturity) (e) | 3,120 | 3,121 | ||
4.75% 8/15/16 (Escrowed to Maturity) (e) | 1,395 | 1,396 | ||
4.75% 10/15/20 (Escrowed to Maturity) (e) | 150 | 150 | ||
Los Angeles Dept. of Wtr. & Pwr. Wtrwks. Rev.: | ||||
Series 2001 A, 5.125% 7/1/41 | 15,000 | 15,173 | ||
Series 2004 C, 5% 7/1/34 (MBIA Insured) | 1,500 | 1,528 | ||
Series A, 5.125% 7/1/41 (MBIA Insured) | 3,000 | 3,050 | ||
5.5% 10/15/11 (Escrowed to Maturity) (e) | 3,670 | 3,777 | ||
Los Angeles Hbr. Dept. Rev.: | ||||
Series 2005 B, 5% 8/1/14 (FGIC Insured) (d) | 6,265 | 6,612 | ||
7.6% 10/1/18 (Escrowed to Maturity) (e) | 12,970 | 15,380 | ||
Los Angeles Unified School District: | ||||
Series 2004 A1, 5% 7/1/17 (MBIA Insured) | 3,000 | 3,176 | ||
Series H: | ||||
5% 7/1/18 (FSA Insured) | 1,500 | 1,608 | ||
5% 7/1/19 (FSA Insured) | 7,360 | 7,836 | ||
M-S-R Pub. Pwr. Agcy. San Juan Proj. Rev. Series D, 6.75% 7/1/20 (Escrowed to Maturity) (e) | 2,095 | 2,425 | ||
Manhattan Beach Unified School District Series A, 0% 9/1/09 (FGIC Insured) | 975 | 905 | ||
Marina Coast Wtr. District Ctfs. Prtn. 5% 6/1/37 (MBIA Insured) | 3,500 | 3,552 | ||
Merced Union High School District Series A, 0% 8/1/22 (FGIC Insured) | 1,100 | 542 | ||
Metropolitan Wtr. District of Southern California Wtrwks. Rev. Series 2005 A, 5% 7/1/35 (FSA Insured) | 17,800 | 18,204 | ||
Modesto Elementary School District, Stanislaus County Series A: | ||||
0% 8/1/21 (FGIC Insured) | 2,000 | 1,043 | ||
0% 8/1/25 (FGIC Insured) | 2,800 | 1,169 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
California - continued | ||||
Modesto Gen. Oblig. Ctfs. of Prtn.: | ||||
(Cmnty. Ctr. Refing. Proj.) Series A, 5% 11/1/23 (AMBAC Insured) | $ 2,500 | $ 2,639 | ||
(Golf Course Refing. Proj.) Series B, 5% 11/1/23 (FGIC Insured) | 1,585 | 1,674 | ||
Modesto Irrigation District Ctfs. of Prtn.: | ||||
(Geysers Geothermal Pwr. Proj.) Series 1986 A, 5% 10/1/17 (Escrowed to Maturity) (e) | 5,000 | 5,004 | ||
(Rfdg. and Cap. Impts Proj.) Series A, 0% 10/1/10 (Escrowed to Maturity) (e) | 2,270 | 2,015 | ||
Monrovia Unified School District Series B, 0% 8/1/33 (FGIC Insured) | 2,500 | 683 | ||
Montebello Unified School District 0% 6/1/26 (FSA Insured) | 1,580 | 630 | ||
Monterey County Ctfs. of Prtn. 5% 8/1/18 (AMBAC Insured) | 3,580 | 3,795 | ||
Moreland School District Series 2003 B, 0% 8/1/27 (FGIC Insured) | 1,485 | 556 | ||
Murrieta Valley Unified School District Series A, 0% 9/1/13 (FGIC Insured) | 1,500 | 1,183 | ||
Natomas Unified School District 5.25% 8/1/30 (FGIC Insured) | 5,150 | 5,358 | ||
New Haven Unified School District: | ||||
12% 8/1/16 (FSA Insured) | 1,500 | 2,381 | ||
12% 8/1/17 (FSA Insured) | 1,000 | 1,633 | ||
North City West School Facilities Fing. Auth. Spl. Tax: | ||||
Subseries B, 5.25% 9/1/23 (AMBAC Insured) | 1,530 | 1,645 | ||
Subseries C: | ||||
5% 9/1/16 (AMBAC Insured) | 1,000 | 1,073 | ||
5% 9/1/17 (AMBAC Insured) | 2,735 | 2,933 | ||
Northern California Gas Auth. #1 Gas Proj. Rev.: | ||||
Series A, 5% 7/1/11 | 2,300 | 2,361 | ||
4.041% 7/1/13 (c) | 9,000 | 8,725 | ||
Northern California Pwr. Agcy. Pub. Pwr. Rev. (Hydro Elec. #1 Proj.) Series A, 7.5% 7/1/23 (Pre-Refunded to 7/1/21 @ 100) (e) | 3,850 | 4,986 | ||
Northern California Transmission Auth. Rev. (Ore Trans. Proj.) Series A, 7% 5/1/13 (MBIA Insured) | 6,100 | 6,797 | ||
Novato Unified School District 5.25% 8/1/17 (FGIC Insured) | 1,000 | 1,060 | ||
Oakland Redev. Agcy. Sub Tax Allocation (Central District Redev. Proj.): | ||||
5% 9/1/21 (Escrowed to Maturity) (e) | 1,000 | 1,054 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
California - continued | ||||
Oakland Redev. Agcy. Sub Tax Allocation (Central District Redev. Proj.): - continued | ||||
5.5% 9/1/17 (FGIC Insured) | $ 3,000 | $ 3,211 | ||
Ontario Redev. Fing. Auth. Rev. (Ctr. City Cimarron #1 Proj.) 0% 8/1/10 (MBIA Insured) | 3,255 | 2,921 | ||
Orange County Local Trans. Auth. Sales Tax Rev. 6.2% 2/14/11 (AMBAC Insured) | 7,000 | 7,477 | ||
Orange County Pub. Fin. Auth. Waste Mgt. Sys. Rev.: | ||||
5.75% 12/1/09 (AMBAC Insured) (d) | 3,620 | 3,764 | ||
5.75% 12/1/11 (AMBAC Insured) (d) | 4,000 | 4,280 | ||
Orange County Pub. Fin. Lease Rev. (Juvenile Justice Ctr. Facility Proj.) 5.375% 6/1/16 (AMBAC Insured) | 3,770 | 4,043 | ||
Oxnard Fin. Auth. Solid Waste Rev.: | ||||
5% 5/1/09 (AMBAC Insured) (d) | 1,785 | 1,814 | ||
5% 5/1/10 (AMBAC Insured) (d) | 1,820 | 1,862 | ||
5% 5/1/12 (AMBAC Insured) (d) | 2,065 | 2,145 | ||
Oxnard Fing. Auth. Wastewtr. Rev. (Redwood Trunk Swr. and Headworks Proj.) Series A, 5% 6/1/29 (FGIC Insured) | 3,000 | 3,067 | ||
Palmdale Elementary School District Spl. Tax (Cmnty. Facilities District #90-1 Proj.) 5.8% 8/1/29 (FSA Insured) | 6,410 | 6,699 | ||
Placer County Union High School District Series A: | ||||
0% 8/1/20 (FGIC Insured) | 2,000 | 1,104 | ||
0% 8/1/21 (FGIC Insured) | 1,000 | 521 | ||
Placer County Wtr. Agcy. Rev. (Middle Fork Proj.) Series A, 3.75% 7/1/12 | 2,030 | 2,028 | ||
Pomona Unified School District Series C, 6% 8/1/30 (Escrowed to Maturity) (e) | 4,035 | 4,175 | ||
Port of Oakland Gen. Oblig.: | ||||
Series 2002 N, 5% 11/1/12 (MBIA Insured) (d) | 2,800 | 2,932 | ||
Series L, 5.5% 11/1/20 (FGIC Insured) (d) | 3,405 | 3,565 | ||
5% 11/1/15 (MBIA Insured) (d) | 5,850 | 6,106 | ||
5% 11/1/17 (MBIA Insured) (d) | 3,355 | 3,477 | ||
5% 11/1/18 (MBIA Insured) (d) | 2,740 | 2,828 | ||
Port of Oakland Port Rev. Series G, 5.375% 11/1/08 (MBIA Insured) (d) | 1,805 | 1,835 | ||
Poway Unified School District Pub. Fing. Auth. Lease Rev. Cap. Appreciation 0%, tender 6/1/10 (FSA Insured) (c) | 4,800 | 4,305 | ||
Redwood City Elementary School District 0% 8/1/20 (FGIC Insured) | 4,825 | 2,663 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
California - continued | ||||
Richmond Redev. Agcy. Tax Allocation Rev. (Harbour Redev. Proj.) 7% 7/1/09 (FSA Insured) | $ 35 | $ 35 | ||
Riverside County Asset Leasing Corp. Leasehold Rev. (Riverside County Hosp. Proj.): | ||||
Series A, 6.5% 6/1/12 (MBIA Insured) | 15,500 | 16,851 | ||
Series B, 5.7% 6/1/16 (MBIA Insured) | 1,950 | 2,110 | ||
Riverside County Pub. Fing. Auth. Tax Allocation Rev. (Redev. Projs.): | ||||
Series A, 5% 10/1/18 (XL Cap. Assurance, Inc. Insured) | 3,740 | 3,917 | ||
5.25% 10/1/20 (XL Cap. Assurance, Inc. Insured) | 2,020 | 2,116 | ||
5.25% 10/1/21 (XL Cap. Assurance, Inc. Insured) | 2,125 | 2,219 | ||
Rocklin Unified School District: | ||||
0% 8/1/24 (FGIC Insured) | 1,370 | 608 | ||
0% 8/1/25 (FGIC Insured) | 2,725 | 1,147 | ||
0% 8/1/26 (FGIC Insured) | 1,365 | 545 | ||
Roseville City School District: | ||||
0% 8/1/25 (FGIC Insured) | 1,745 | 728 | ||
0% 8/1/27 (FGIC Insured) | 1,940 | 726 | ||
Sacramento City Fing. Auth. Lease Rev. Series A, 5.4% 11/1/20 (AMBAC Insured) | 2,000 | 2,177 | ||
Sacramento City Fing. Auth. Rev. (Combined Area Projs.) Series B, 0% 11/1/15 (MBIA Insured) | 7,735 | 5,485 | ||
Sacramento County Sanitation District Fing. Auth. Rev. 4.121% 12/1/35 (FGIC Insured) (c) | 10,000 | 9,790 | ||
Sacramento Muni. Util. District Elec. Rev.: | ||||
Series 2001 P, 5.25% 8/15/16 (FSA Insured) | 1,500 | 1,580 | ||
Series L, 5.125% 7/1/22 (MBIA Insured) | 4,000 | 4,083 | ||
Series R, 5% 8/15/33 (MBIA Insured) | 6,825 | 6,926 | ||
San Bernardino County Ctfs. of Prtn.: | ||||
(Cap. Facilities Proj.) Series B, 6.875% 8/1/24 (Escrowed to Maturity) (e) | 8,500 | 10,618 | ||
(Med. Ctr. Fing. Prog.) 5.5% 8/1/22 | 10,000 | 10,551 | ||
San Diego Cmnty. College District: | ||||
Series 2002 A, 5% 5/1/22 (FSA Insured) | 1,000 | 1,028 | ||
0% 8/1/17 (FSA Insured) | 3,395 | 2,208 | ||
San Diego County Ctfs. of Prtn.: | ||||
(The Bishop's School Proj.) Series A, 6% 9/1/34, LOC Bank of New York, New York | 4,090 | 4,444 | ||
5% 11/15/16 (AMBAC Insured) | 2,000 | 2,134 | ||
5% 11/15/17 (AMBAC Insured) | 2,000 | 2,123 | ||
5% 11/15/18 (AMBAC Insured) | 2,000 | 2,110 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
California - continued | ||||
San Diego County Ctfs. of Prtn.: - continued | ||||
5.25% 10/1/11 | $ 1,705 | $ 1,791 | ||
San Diego County Reg'l. Arpt. Auth. Arpt. Rev. 5% 7/1/12 (AMBAC Insured) (d) | 2,200 | 2,297 | ||
San Diego Unified School District (Election of 1998 Proj.): | ||||
Series 2000 B, 6.05% 7/1/18 (MBIA Insured) | 2,290 | 2,655 | ||
Series D, 5.25% 7/1/17 (FGIC Insured) (Pre-Refunded to 7/1/12 @ 101) (e) | 4,325 | 4,635 | ||
San Francisco Bay Area Rapid Trans. District Sales Tax Rev. 5.25% 7/1/18 | 1,620 | 1,653 | ||
San Francisco Bay Area Rapid Transit Fing. Auth. Series 2004 A, 5% 8/1/35 | 6,815 | 6,957 | ||
San Francisco City & County Arpts. Commission Int'l. Arpt. Rev.: | ||||
(SFO Fuel Co. Proj.) Series A: | ||||
5.125% 1/1/17 (AMBAC Insured) (d) | 6,000 | 6,076 | ||
5.25% 1/1/18 (AMBAC Insured) (d) | 4,515 | 4,574 | ||
Second Series 15A, 5.5% 5/1/09 (FSA Insured) (d) | 1,355 | 1,389 | ||
Second Series 18A: | ||||
5.25% 5/1/11 (MBIA Insured) (d) | 3,280 | 3,343 | ||
5.25% 5/1/14 (MBIA Insured) (d) | 2,750 | 2,799 | ||
Series 32F, 5.25% 5/1/19 (FGIC Insured) | 2,500 | 2,730 | ||
Series 32H: | ||||
5% 5/1/11 (CIFG North America Insured) (d) | 2,325 | 2,412 | ||
5% 5/1/12 (CIFG North America Insured) (d) | 1,000 | 1,045 | ||
San Francisco City & County Pub. Util. Commission Wtr. Rev. Series A, 5% 11/1/32 (MBIA Insured) | 2,800 | 2,864 | ||
San Francisco City & County Redev. Fing. Auth. Tax Allocation Rev.: | ||||
(San Francisco Redev. Proj.) Series B, 0% 8/1/10 (MBIA Insured) | 1,475 | 1,324 | ||
Series A: | ||||
0% 8/1/09 (FGIC Insured) | 1,085 | 1,011 | ||
0% 8/1/10 (FGIC Insured) | 1,085 | 974 | ||
San Joaquin County Ctfs. of Prtn. (County Administration Bldg. Proj.): | ||||
5% 11/15/20 (MBIA Insured) | 3,720 | 3,895 | ||
5% 11/15/21 (MBIA Insured) | 3,645 | 3,799 | ||
San Joaquin Hills Trans. Corridor Agcy. Toll Road Rev.: | ||||
Series 1997 A, 0% 1/15/26 (MBIA Insured) | 11,000 | 4,426 | ||
Series A: | ||||
0% 1/15/10 (MBIA Insured) | 2,240 | 2,049 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
California - continued | ||||
San Joaquin Hills Trans. Corridor Agcy. Toll Road Rev.: - continued | ||||
Series A: | ||||
0% 1/15/12 (MBIA Insured) | $ 7,000 | $ 5,902 | ||
0% 1/15/15 (MBIA Insured) | 5,000 | 3,666 | ||
0% 1/15/20 (MBIA Insured) | 3,765 | 2,118 | ||
0% 1/15/31 (MBIA Insured) | 5,000 | 1,524 | ||
5.5% 1/15/28 | 1,060 | 1,040 | ||
0% 1/1/12 (Escrowed to Maturity) (e) | 10,000 | 8,502 | ||
San Jose Int'l. Arpt. Rev.: | ||||
Series A, 5.25% 3/1/14 (FGIC Insured) | 1,000 | 1,050 | ||
5% 3/1/24 (AMBAC Insured) (b)(d) | 9,690 | 9,785 | ||
5% 3/1/37 (AMBAC Insured) (b)(d) | 10,000 | 9,939 | ||
San Jose Unified School District Santa Clara County: | ||||
Series 2002 B, 5% 8/1/25 (FGIC Insured) | 1,750 | 1,808 | ||
Series A, 5.375% 8/1/20 (FSA Insured) | 1,895 | 2,000 | ||
San Luis Obispo County Fing. Auth. Series 2000 A, 5.375% 8/1/24 (MBIA Insured) | 1,000 | 1,038 | ||
San Marcos Pub. Facilities Auth. Pub. Facilities Rev. 0% 9/1/15 (Escrowed to Maturity) (e) | 1,990 | 1,448 | ||
San Mateo County Cmnty. College District Series A, 0% 9/1/18 (FGIC Insured) | 3,000 | 1,854 | ||
San Mateo Unified School District (Election of 2000 Proj.) Series B: | ||||
0% 9/1/23 (FGIC Insured) | 2,000 | 941 | ||
0% 9/1/25 (FGIC Insured) | 1,490 | 630 | ||
0% 9/1/26 (FGIC Insured) | 1,500 | 602 | ||
Sanger Unified School District 5.6% 8/1/23 (MBIA Insured) | 3,000 | 3,325 | ||
Santa Clarita Cmnty. College District 4.25% 8/1/23 (MBIA Insured) | 2,200 | 2,090 | ||
Santa Margarita/Dana Point Auth. Rev. Impt. (Dists. 1, 2, 2A & 8 Proj.) Series A, 7.25% 8/1/12 (MBIA Insured) | 1,865 | 2,157 | ||
Santa Rosa Wastewtr. Rev. (Cap. Appreciation) Series B: | ||||
0% 9/1/20 (AMBAC Insured) | 4,030 | 2,215 | ||
0% 9/1/22 (AMBAC Insured) | 2,900 | 1,424 | ||
Shasta Joint Powers Fing. Auth. Lease Rev. (County Administration Bldg. Proj.) Series A, 5% 4/1/29 (MBIA Insured) | 5,015 | 5,071 | ||
Shasta Union High School District: | ||||
0% 8/1/26 (FGIC Insured) | 1,000 | 392 | ||
0% 5/1/28 (MBIA Insured) | 3,340 | 1,185 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
California - continued | ||||
Sierra View Local Health Care District Rev. 5.25% 7/1/37 (b) | $ 1,500 | $ 1,489 | ||
Southern California Pub. Pwr. Auth. Rev. (Multiple Projs.): | ||||
6.75% 7/1/10 | 1,400 | 1,508 | ||
6.75% 7/1/11 | 6,500 | 7,166 | ||
Sulphur Springs Union School District Series A, 0% 9/1/12 (MBIA Insured) | 2,750 | 2,268 | ||
Sulphur Springs Union School District Ctfs. of Prtn. (2002 School Facility Bridge Fdg. Prog.) 3.1%, tender 9/1/09 (FSA Insured) (c) | 3,000 | 2,964 | ||
Tahoe-Truckee Joint Unified School District Series A, 0% 9/1/10 (FGIC Insured) | 2,730 | 2,333 | ||
Torrance Ctfs. of Prtn. (Refing. & Pub. Impt. Proj.) Series B, 5.25% 6/1/34 (AMBAC Insured) | 3,000 | 3,108 | ||
Torrance Hosp. Rev. (Torrance Memorial Med. Ctr. Proj.) Series 2001 A: | ||||
5.5% 6/1/31 | 2,350 | 2,411 | ||
6% 6/1/22 | 1,100 | 1,169 | ||
Ukiah Unified School District 0% 8/1/14 (FGIC Insured) | 3,040 | 2,303 | ||
Union Elementary School District Series A: | ||||
0% 9/1/18 (FGIC Insured) | 1,000 | 615 | ||
0% 9/1/21 (FGIC Insured) | 2,995 | 1,555 | ||
Univ. of California Revs.: | ||||
(Ltd. Proj.) Series B: | ||||
5% 5/15/20 (FSA Insured) | 2,800 | 2,909 | ||
5% 5/15/33 (FSA Insured) | 1,000 | 1,014 | ||
(UCLA Med. Ctr. Proj.): | ||||
Series B, 5.5% 5/15/18 (AMBAC Insured) | 8,035 | 8,674 | ||
4.55% 12/1/09 (Escrowed to Maturity) (e)(f) | 21,213 | 21,623 | ||
Series 2005 F, 4.75% 5/15/35 (FSA Insured) | 3,000 | 2,897 | ||
Series A, 5.125% 5/15/18 (AMBAC Insured) | 2,000 | 2,103 | ||
Series B: | ||||
5% 5/15/16 (FSA Insured) | 2,100 | 2,225 | ||
5% 5/15/17 (FSA Insured) | 4,000 | 4,218 | ||
5.25% 5/15/16 (AMBAC Insured) | 7,120 | 7,602 | ||
Series C, 4.75% 5/15/37 (MBIA Insured) | 3,980 | 3,833 | ||
Series K, 5% 5/15/22 | 6,455 | 6,713 | ||
Upland Ctfs. of Prtn. (San Antonio Cmnty. Hosp. Proj.): | ||||
5.25% 1/1/08 | 700 | 701 | ||
5.25% 1/1/13 | 8,500 | 8,506 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
California - continued | ||||
Val Verde Unified School District Ctfs. of Prtn.: | ||||
5% 1/1/35 (FGIC Insured) | $ 2,090 | $ 2,124 | ||
5% 1/1/35 (Pre-Refunded to 1/1/15 @ 100) (e) | 995 | 1,069 | ||
5.25% 1/1/17 (Pre-Refunded to 1/1/15 @ 100) (e) | 1,000 | 1,091 | ||
5.25% 1/1/18 (Pre-Refunded to 1/1/15 @ 100) (e) | 1,380 | 1,505 | ||
Victor Elementary School District Series A, 0% 6/1/14 (MBIA Insured) | 2,375 | 1,805 | ||
Vista Unified School District Series A: | ||||
5.375% 8/1/15 (FSA Insured) | 130 | 139 | ||
5.375% 8/1/16 (FSA Insured) | 100 | 107 | ||
Walnut Valley Unified School District Series D: | ||||
0% 8/1/30 (FGIC Insured) | 2,875 | 911 | ||
0% 8/1/31 (FGIC Insured) | 2,715 | 815 | ||
0% 8/1/32 (FGIC Insured) | 1,315 | 374 | ||
5.25% 8/1/16 (FGIC Insured) | 1,000 | 1,069 | ||
Washington Township Health Care District Rev. Series A: | ||||
5% 7/1/23 | 1,460 | 1,454 | ||
5% 7/1/25 | 1,665 | 1,644 | ||
5% 7/1/37 | 1,750 | 1,664 | ||
Western Placer Unified School District Ctfs. of Prtn. (School Facilities Proj.) Series B, 3.625%, tender 12/1/09 (FSA Insured) (c) | 3,300 | 3,289 | ||
Yuba City Unified School District Series A, 0% 9/1/21 (FGIC Insured) | 2,090 | 1,093 | ||
1,580,255 | ||||
Guam - 0.2% | ||||
Guam Wtrwks. Auth. Wtr. and Wastewtr. Sys. Rev.: | ||||
5% 7/1/09 | 1,100 | 1,105 | ||
5.875% 7/1/35 | 1,875 | 1,930 | ||
3,035 | ||||
Puerto Rico - 0.9% | ||||
Puerto Rico Commonwealth Gen. Oblig. Series 2006A, 3.474% 7/1/21 (FGIC Insured) (c) | 4,600 | 4,459 | ||
Puerto Rico Commonwealth Hwy. & Trans. Auth. Trans. Rev. Series N, 5.25% 7/1/39 (FGIC Insured) | 6,500 | 7,087 | ||
Puerto Rico Sales Tax Fing. Corp. Sales Tax Rev. Series A: | ||||
0% 8/1/41 (FGIC Insured) | 9,500 | 1,672 | ||
0% 8/1/54 (AMBAC Insured) | 9,500 | 840 | ||
14,058 | ||||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
Virgin Islands - 0.1% | ||||
Virgin Islands Pub. Fin. Auth. Rev. Series A: | ||||
5% 10/1/10 | $ 550 | $ 565 | ||
5.25% 10/1/15 | 1,255 | 1,325 | ||
1,890 |
TOTAL INVESTMENT PORTFOLIO - 100.8% (Cost $1,583,045) | 1,599,238 | ||
NET OTHER ASSETS - (0.8)% | (13,020) | ||
NET ASSETS - 100% | $ 1,586,218 |
Legend |
(a) Security initially issued in zero coupon form which converts to coupon form at a specified rate and date. The rate shown is the rate at period end. |
(b) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(c) The coupon rate shown on floating or adjustable rate securities represents the rate at period end. |
(d) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals. |
(e) Security collateralized by an amount sufficient to pay interest and principal. |
(f) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $21,623,000 or 1.4% of net assets. |
Additional information on each holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
Univ. of California Revs. (UCLA Med. Ctr. Proj.) 4.55% 12/1/09 | 3/6/02 | $ 21,213 |
Other Information |
The distribution of municipal securities by revenue source, as a percentage of total net assets, is as follows: |
General Obligations | 41.3% |
Transportation | 10.8% |
Escrowed/Pre-Refunded | 9.3% |
Water & Sewer | 7.5% |
Education | 7.0% |
Special Tax | 6.6% |
Electric Utilities | 5.5% |
Health Care | 5.3% |
Others* (individually less than 5%) | 6.7% |
100.0% |
*Includes net other assets |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | August 31, 2007 (Unaudited) | |
Assets | ||
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $1,583,045) | $ 1,599,238 | |
Cash | 1,188 | |
Receivable for fund shares sold | 1,453 | |
Interest receivable | 16,841 | |
Prepaid expenses | 2 | |
Other receivables | 165 | |
Total assets | 1,618,887 | |
Liabilities | ||
Payable for investments purchased | $ 4,178 | |
Delayed delivery | 24,209 | |
Payable for fund shares redeemed | 1,579 | |
Distributions payable | 1,694 | |
Accrued management fee | 482 | |
Distribution fees payable | 15 | |
Other affiliated payables | 480 | |
Other payables and accrued expenses | 32 | |
Total liabilities | 32,669 | |
Net Assets | $ 1,586,218 | |
Net Assets consist of: | ||
Paid in capital | $ 1,567,255 | |
Undistributed net investment income | 495 | |
Accumulated undistributed net realized gain (loss) on investments | 2,275 | |
Net unrealized appreciation (depreciation) on investments | 16,193 | |
Net Assets | $ 1,586,218 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | August 31, 2007 (Unaudited) | |
Calculation of Maximum Offering Price Class A: | $ 12.06 | |
Maximum offering price per share (100/96.00 of $12.06) | $ 12.56 | |
Class T: | $ 12.08 | |
Maximum offering price per share (100/96.00 of $12.08) | $ 12.58 | |
Class B: | $ 12.05 | |
Class C: | $ 12.05 | |
California Municipal Income: | $ 12.05 | |
Institutional Class: | $ 12.07 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Amounts in thousands | Six months ended August 31, 2007 (Unaudited) | |
Investment Income | ||
Interest | $ 36,706 | |
Expenses | ||
Management fee | $ 2,996 | |
Transfer agent fees | 563 | |
Distribution fees | 92 | |
Accounting fees and expenses | 153 | |
Custodian fees and expenses | 12 | |
Independent trustees' compensation | 3 | |
Registration fees | 62 | |
Audit | 28 | |
Legal | 6 | |
Miscellaneous | 9 | |
Total expenses before reductions | 3,924 | |
Expense reductions | (298) | 3,626 |
Net investment income | 33,080 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 5,053 | |
Futures contracts | 76 | |
Total net realized gain (loss) | 5,129 | |
Change in net unrealized appreciation (depreciation) on: Investment securities | (48,220) | |
Swap agreements | 360 | |
Total change in net unrealized appreciation (depreciation) | (47,860) | |
Net gain (loss) | (42,731) | |
Net increase (decrease) in net assets resulting from operations | $ (9,651) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
Amounts in thousands | Six months ended | Year ended |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income | $ 33,080 | $ 64,183 |
Net realized gain (loss) | 5,129 | 13,028 |
Change in net unrealized appreciation (depreciation) | (47,860) | (7,105) |
Net increase (decrease) in net assets resulting | (9,651) | 70,106 |
Distributions to shareholders from net investment income | (33,064) | (64,808) |
Distributions to shareholders from net realized gain | (4,440) | (12,368) |
Total distributions | (37,504) | (77,176) |
Share transactions - net increase (decrease) | (18,299) | 24,916 |
Redemption fees | 6 | 8 |
Total increase (decrease) in net assets | (65,448) | 17,854 |
Net Assets | ||
Beginning of period | 1,651,666 | 1,633,812 |
End of period (including undistributed net investment income of $495 and $521, respectively) | $ 1,586,218 | $ 1,651,666 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
Six months ended | Years ended February 28, | |||||
(Unaudited) | 2007 | 2006 | 2005 | 2004 H | 2003 F | |
Selected Per-Share Data | ||||||
Net asset value, beginning of period | $ 12.41 | $ 12.46 | $ 12.56 | $ 12.84 | $ 12.76 | $ 12.60 |
Income from Investment Operations | ||||||
Net investment income E | .232 | .478 | .490 | .505 | .521 | .303 |
Net realized and unrealized gain (loss) | (.317) | .050 | (.025) | (.149) | .248 | .212 |
Total from investment operations | (.085) | .528 | .465 | .356 | .769 | .515 |
Distributions from net investment income | (.232) | (.483) | (.490) | (.501) | (.517) | (.297) |
Distributions from net realized gain | (.033) | (.095) | (.075) | (.135) | (.172) | (.058) |
Total distributions | (.265) | (.578) | (.565) | (.636) | (.689) | (.355) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, | $ 12.06 | $ 12.41 | $ 12.46 | $ 12.56 | $ 12.84 | $ 12.76 |
Total Return B, C, D | (.69)% | 4.36% | 3.78% | 2.92% | 6.25% | 4.13% |
Ratios to Average Net Assets G | ||||||
Expenses before reductions | .72% A | .64% | .65% | .66% | .65% | .66% A |
Expenses net of fee waivers, if any | .72% A | .64% | .65% | .66% | .65% | .66% A |
Expenses net of all reductions | .68% A | .62% | .62% | .65% | .65% | .65% A |
Net investment income | 3.78% A | 3.88% | 3.93% | 4.04% | 4.12% | 4.18% A |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $ 14 | $ 13 | $ 11 | $ 7 | $ 6 | $ 3 |
Portfolio turnover rate | 38% A | 23% | 19% | 15% | 18% | 18% |
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F For the period August 1, 2002 (commencement of sale of shares) to February 28, 2003.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H For the year ended February 29.
I Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
Six months ended | Years ended February 28, | |||||
(Unaudited) | 2007 | 2006 | 2005 | 2004 H | 2003 F | |
Selected Per-Share Data | ||||||
Net asset value, beginning of period | $ 12.43 | $ 12.48 | $ 12.58 | $ 12.86 | $ 12.79 | $ 12.60 |
Income from Investment Operations | ||||||
Net investment income E | .231 | .466 | .477 | .492 | .508 | .296 |
Net realized and unrealized gain (loss) | (.318) | .048 | (.027) | (.150) | .237 | .241 |
Total from investment operations | (.087) | .514 | .450 | .342 | .745 | .537 |
Distributions from net investment income | (.230) | (.469) | (.475) | (.487) | (.503) | (.289) |
Distributions from net realized gain | (.033) | (.095) | (.075) | (.135) | (.172) | (.058) |
Total distributions | (.263) | (.564) | (.550) | (.622) | (.675) | (.347) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, | $ 12.08 | $ 12.43 | $ 12.48 | $ 12.58 | $ 12.86 | $ 12.79 |
Total Return B, C, D | (.70)% | 4.24% | 3.66% | 2.80% | 6.04% | 4.31% |
Ratios to Average Net Assets G | ||||||
Expenses before reductions | .74% A | .75% | .77% | .77% | .76% | .77% A |
Expenses net of fee waivers, if any | .74% A | .75% | .77% | .77% | .76% | .77% A |
Expenses net of all reductions | .70% A | .72% | .73% | .76% | .76% | .76% A |
Net investment income | 3.76% A | 3.77% | 3.81% | 3.93% | 4.01% | 4.07% A |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $ 5 | $ 5 | $ 4 | $ 3 | $ 4 | $ 1 |
Portfolio turnover rate | 38% A | 23% | 19% | 15% | 18% | 18% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F For the period August 1, 2002 (commencement of sale of shares) to February 28, 2003.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H For the year ended February 29.
I Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
Six months ended | Years ended February 28, | |||||
(Unaudited) | 2007 | 2006 | 2005 | 2004 H | 2003 F | |
Selected Per-Share Data | ||||||
Net asset value, beginning of period | $ 12.40 | $ 12.45 | $ 12.55 | $ 12.84 | $ 12.76 | $ 12.60 |
Income from Investment Operations | ||||||
Net investment income E | .190 | .383 | .394 | .409 | .426 | .247 |
Net realized and unrealized gain (loss) | (.317) | .049 | (.026) | (.159) | .248 | .210 |
Total from investment operations | (.127) | .432 | .368 | .250 | .674 | .457 |
Distributions from net investment income | (.190) | (.387) | (.393) | (.405) | (.422) | (.239) |
Distributions from net realized gain | (.033) | (.095) | (.075) | (.135) | (.172) | (.058) |
Total distributions | (.223) | (.482) | (.468) | (.540) | (.594) | (.297) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, | $ 12.05 | $ 12.40 | $ 12.45 | $ 12.55 | $ 12.84 | $ 12.76 |
Total Return B, C, D | (1.03)% | 3.57% | 2.99% | 2.06% | 5.46% | 3.66% |
Ratios to Average Net Assets G | ||||||
Expenses before reductions | 1.40% A | 1.41% | 1.42% | 1.42% | 1.41% | 1.42% A |
Expenses net of fee waivers, if any | 1.40% A | 1.41% | 1.42% | 1.42% | 1.41% | 1.42% A |
Expenses net of all reductions | 1.37% A | 1.39% | 1.39% | 1.41% | 1.40% | 1.42% A |
Net investment income | 3.10% A | 3.11% | 3.15% | 3.28% | 3.37% | 3.42% A |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $ 5 | $ 5 | $ 5 | $ 5 | $ 5 | $ 4 |
Portfolio turnover rate | 38% A | 23% | 19% | 15% | 18% | 18% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F For the period August 1, 2002 (commencement of sale of shares) to February 28, 2003.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H For the year ended February 29.
I Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
Six months ended | Years ended February 28, | |||||
(Unaudited) | 2007 | 2006 | 2005 | 2004 H | 2003 F | |
Selected Per-Share Data | ||||||
Net asset value, beginning of period | $ 12.40 | $ 12.44 | $ 12.55 | $ 12.83 | $ 12.75 | $ 12.60 |
Income from Investment Operations | ||||||
Net investment income E | .184 | .371 | .382 | .397 | .411 | .239 |
Net realized and unrealized gain (loss) | (.317) | .061 | (.035) | (.149) | .248 | .200 |
Total from investment operations | (.133) | .432 | .347 | .248 | .659 | .439 |
Distributions from net investment income | (.184) | (.377) | (.382) | (.393) | (.407) | (.231) |
Distributions from net realized gain | (.033) | (.095) | (.075) | (.135) | (.172) | (.058) |
Total distributions | (.217) | (.472) | (.457) | (.528) | (.579) | (.289) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, | $ 12.05 | $ 12.40 | $ 12.44 | $ 12.55 | $ 12.83 | $ 12.75 |
Total Return B, C, D | (1.08)% | 3.56% | 2.81% | 2.04% | 5.34% | 3.52% |
Ratios to Average Net Assets G | ||||||
Expenses before reductions | 1.50% A | 1.50% | 1.52% | 1.52% | 1.52% | 1.54% A |
Expenses net of fee waivers, if any | 1.50% A | 1.50% | 1.52% | 1.52% | 1.52% | 1.54% A |
Expenses net of all reductions | 1.46% A | 1.48% | 1.49% | 1.51% | 1.51% | 1.53% A |
Net investment income | 3.00% A | 3.02% | 3.06% | 3.18% | 3.25% | 3.30% A |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $ 9 | $ 10 | $ 10 | $ 11 | $ 12 | $ 7 |
Portfolio turnover rate | 38% A | 23% | 19% | 15% | 18% | 18% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F For the period August 1, 2002 (commencement of sale of shares) to February 28, 2003.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H For the year ended February 29.
I Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - California Municipal Income
Six months ended | Years ended February 28, | |||||
(Unaudited) | 2007 | 2006 | 2005 | 2004 F | 2003 | |
Selected Per-Share Data | ||||||
Net asset value, beginning of period | $ 12.40 | $ 12.45 | $ 12.55 | $ 12.83 | $ 12.75 | $ 12.55 |
Income from Investment Operations | ||||||
Net investment income D | .247 | .499 | .512 | .527 | .544 | .546 |
Net realized and unrealized gain (loss) | (.317) | .050 | (.025) | (.149) | .247 | .265 |
Total from investment operations | (.070) | .549 | .487 | .378 | .791 | .811 |
Distributions from net investment income | (.247) | (.504) | (.512) | (.523) | (.539) | (.541) |
Distributions from net realized gain | (.033) | (.095) | (.075) | (.135) | (.172) | (.070) |
Total distributions | (.280) | (.599) | (.587) | (.658) | (.711) | (.611) |
Redemption fees added to paid in capital D, G | - | - | - | - | - | - |
Net asset value, | $ 12.05 | $ 12.40 | $ 12.45 | $ 12.55 | $ 12.83 | $ 12.75 |
Total Return B, C | (.57)% | 4.55% | 3.97% | 3.11% | 6.44% | 6.64% |
Ratios to Average Net Assets E | ||||||
Expenses before reductions | .47% A | .47% | .48% | .48% | .48% | .49% |
Expenses net of fee waivers, if any | .47% A | .47% | .48% | .48% | .48% | .48% |
Expenses net of all reductions | .43% A | .44% | .45% | .47% | .48% | .47% |
Net investment income | 4.03% A | 4.05% | 4.10% | 4.22% | 4.29% | 4.34% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $ 1,545 | $ 1,611 | $ 1,601 | $ 1,506 | $ 1,550 | $ 1,683 |
Portfolio turnover rate | 38% A | 23% | 19% | 15% | 18% | 18% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F For the year ended February 29.
G Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
Six months ended | Years ended February 28, | |||||
(Unaudited) | 2007 | 2006 | 2005 | 2004 G | 2003 E | |
Selected Per-Share Data | ||||||
Net asset value, beginning of period | $ 12.42 | $ 12.47 | $ 12.57 | $ 12.85 | $ 12.76 | $ 12.60 |
Income from Investment Operations | ||||||
Net investment income D | .245 | .493 | .509 | .529 | .546 | .316 |
Net realized and unrealized gain (loss) | (.318) | .049 | (.025) | (.151) | .254 | .211 |
Total from investment operations | (.073) | .542 | .484 | .378 | .800 | .527 |
Distributions from net investment income | (.244) | (.497) | (.509) | (.523) | (.538) | (.309) |
Distributions from net realized gain | (.033) | (.095) | (.075) | (.135) | (.172) | (.058) |
Total distributions | (.277) | (.592) | (.584) | (.658) | (.710) | (.367) |
Redemption fees added to paid in capital D, H | - | - | - | - | - | - |
Net asset value, | $ 12.07 | $ 12.42 | $ 12.47 | $ 12.57 | $ 12.85 | $ 12.76 |
Total Return B, C | (.59)% | 4.48% | 3.94% | 3.10% | 6.51% | 4.23% |
Ratios to Average Net Assets F | ||||||
Expenses before reductions | .51% A | .53% | .50% | .47% | .49% | .50% A |
Expenses net of fee waivers, if any | .51% A | .53% | .50% | .47% | .49% | .50% A |
Expenses net of all reductions | .47% A | .50% | .46% | .47% | .49% | .49% A |
Net investment income | 3.99% A | 3.99% | 4.08% | 4.23% | 4.28% | 4.34% A |
Supplemental Data | ||||||
Net assets, | $ 8,362 | $ 7,882 | $ 2,143 | $ 1,057 | $ 264 | $ 1,499 |
Portfolio turnover rate | 38% A | 23% | 19% | 15% | 18% | 18% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E For the period August 1, 2002 (commencement of sale of shares) to February 28, 2003.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G For the year ended February 29.
H Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended August 31, 2007 (Unaudited)
(Amounts in thousands except ratios)
1. Organization.
Fidelity California Municipal Income Fund (the Fund) is a non-diversified fund of Fidelity California Municipal Trust (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class B, Class C, California Municipal Income, and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class. The Fund may be affected by economic and political developments in the state of California.
2. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued and net asset value per share is calculated (NAV calculation) as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments. Debt securities, including restricted securities, for which quotes are readily available, are valued by independent pricing services or by dealers who make markets in such securities. Pricing services consider yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices.
When current market prices or quotations are not readily available or do not accurately reflect fair value, valuations may be determined in accordance with procedures adopted by the Board of Trustees. The frequency of when fair value pricing is used is unpredictable. The value of securities used for NAV calculation under fair value pricing may differ from published prices for the same securities. Investments in open-end mutual funds are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
2. Significant Accounting Policies - continued
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV for processing shareholder transactions includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Interest income is accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. Each Fund adopted the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48), on June 29, 2007. FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements. Each of the tax years in the three year period ended June 29, 2007, remains subject to examination by the Internal Revenue Service.
Dividends are declared daily and paid monthly from net investment income. Distributions from realized gains, if any, are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to futures transactions, swap agreements, market discount, deferred trustees compensation and losses deferred due to wash sales futures transactions.
Semiannual Report
2. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The Fund purchases municipal securities whose interest, in the opinion of the issuer, is free from federal income tax. There is no assurance that the Internal Revenue Service (IRS) will agree with this opinion. In the event the IRS determines that the issuer does not comply with relevant tax requirements, interest payments from a security could become federally taxable, possibly retroactively to the date the security was issued.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 36,250 | |
Unrealized depreciation | (18,752) | |
Net unrealized appreciation (depreciation) | $ 17,498 | |
Cost for federal income tax purposes | $ 1,581,740 |
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 30 days are subject to a redemption fee equal to 50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by Fidelity Management & Research Company (FMR), are retained by the Fund and accounted for as an addition to paid in capital.
New Accounting Pronouncement. In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact the adoption of SFAS 157 will have on the Fund's financial statement disclosures.
3. Operating Policies.
Delayed Delivery Transactions and When-Issued Securities. The Fund may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. During the time a delayed delivery sell is outstanding, the contract is marked-to-market daily and equivalent deliverable securities are held for the transaction. The value of the securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. The Fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Operating Policies - continued
Delayed Delivery Transactions and When-Issued Securities - continued
amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Futures Contracts. The Fund may use futures contracts to manage its exposure to the bond market and to fluctuations in interest rates. Buying futures tends to increase a fund's exposure to the underlying instrument, while selling futures tends to decrease a fund's exposure to the underlying instrument or hedge other fund investments. Upon entering into a futures contract, a fund is required to deposit with a clearing broker, no later than the following business day, an amount ("initial margin") equal to a certain percentage of the face value of the contract. The initial margin may be in the form of cash or securities and is transferred to a segregated account on settlement date. Subsequent payments ("variation margin") are made or received by a fund depending on the daily fluctuations in the value of the futures contract and are accounted for as unrealized gains or losses. Realized gains (losses) are recorded upon the expiration or closing of the futures contract. Securities deposited to meet margin requirements are identified in the Schedule of Investments. Losses may arise from changes in the value of the underlying instruments or if the counterparties do not perform under the contract's terms. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $322,823 and $314,824, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .25% of the Fund's average net assets and a group fee rate that averaged ..12% during the period. The group fee rate is based upon the average net assets of all the mutual funds
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .36% of the Fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:
Distribution | Service | Paid to | Retained | |
Class A | -% | .25% | $ 16 | $ 2 |
Class T | -% | .25% | 6 | - |
Class B | .65% | .25% | 23 | 17 |
Class C | .75% | .25% | 47 | 9 |
$ 92 | $ 28 |
On January 18, 2007, the Board of Trustees approved an increase on Class A's service fee from .15% to .25%, effective April 1, 2007.
Sales Load. FDC receives a front-end sales charge of up to 4.00% for selling Class A shares and Class T shares (4.75% for Class A and 3.50% for Class T prior to April 1, 2007) some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, ..75% to .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
Retained | |
Class A | $ 10 |
Class T | 1 |
Class B* | 5 |
Class C* | 1 |
$ 17 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent and Accounting Fees. Citibank, N.A. (Citibank) is the custodian, transfer agent, and shareholder servicing agent for the Fund's Class A, Class T, Class B, Class C, California Municipal Income and Institutional Class shares. Citibank has entered into a sub-arrangement with Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, with respect to all classes of the Fund, except for California Municipal Income, to perform the transfer, dividend disbursing, and shareholder servicing agent functions. Citibank has also entered into a sub-arrangement with Fidelity Service Company, Inc. (FSC), an affiliate of FMR, with respect to California Municipal Income, to perform the transfer, dividend disbursing, and shareholder servicing agent functions. FIIOC and FSC receive account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. All fees are paid to FIIOC by Citibank, which is reimbursed by each class for such payments. FIIOC and FSC pay for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, each class paid the following transfer agent fees:
Amount | % of | |
Class A | $ 6 | .09 |
Class T | 2 | .09 |
Class B | 3 | .11 |
Class C | 5 | .11 |
California Municipal Income | 543 | .07 |
Institutional Class | 4 | .11 |
$ 563 |
* Annualized
Citibank also has a sub-arrangement with FSC to maintain the Fund's accounting records. The fee is based on the level of average net assets for the month.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro rata portion of the line of credit, which amounted to $2 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Semiannual Report
7. Expense Reductions.
Through arrangements with the Fund's custodian and each class' transfer agent, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody and accounting expenses by $13 and $142, respectively. During the period, credits reduced each class' transfer agent expense as noted in the table below.
Transfer Agent | ||
Class A | $ 1 | |
Class C | 1 | |
California Municipal Income | 137 | |
Institutional Class | 1 | |
$ 140 |
8. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
In September 2006, FIIOC, the Fund's transfer agent, notified the Fund that the Fund's books and records did not reflect a conversion of certain Class B to Class A shares upon their conversion date. In March 2007, FIIOC converted the relevant Class B shares to Class A shares and recorded the conversion in the books and records of the Fund which did not result in a material impact to the Fund's reported net assets or results of operations in the accompanying financial statements. FIIOC has remediated affected shareholders and reimbursed the Fund for all related audit and legal expenses.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income | ||
Class A | $ 259 | $ 473 |
Class T | 89 | 176 |
Class B | 80 | 165 |
Class C | 143 | 303 |
California Municipal Income | 32,333 | 63,502 |
Institutional Class | 160 | 189 |
Total | $ 33,064 | $ 64,808 |
From net realized gain | ||
Class A | $ 35 | $ 93 |
Class T | 13 | 35 |
Class B | 14 | 41 |
Class C | 26 | 75 |
California Municipal Income | 4,330 | 12,083 |
Institutional Class | 22 | 41 |
Total | $ 4,440 | $ 12,368 |
10. Share Transactions.
Transactions for each class of shares were as follows:
Shares | Dollars | |||
Six months ended | Year ended | Six months ended | Year ended | |
Class A | ||||
Shares sold | 335 | 487 | $ 4,104 | $ 6,004 |
Reinvestment of distributions | 14 | 28 | 174 | 348 |
Shares redeemed | (212) | (354) | (2,589) | (4,369) |
Net increase (decrease) | 137 | 161 | $ 1,689 | $ 1,983 |
Class T | ||||
Shares sold | 12 | 139 | $ 153 | $ 1,696 |
Reinvestment of distributions | 7 | 14 | 81 | 178 |
Shares redeemed | (44) | (79) | (534) | (971) |
Net increase (decrease) | (25) | 74 | $ (300) | $ 903 |
Semiannual Report
10. Share Transactions - continued
Shares | Dollars | |||
Six months ended | Year ended | Six months ended | Year ended | |
Class B | ||||
Shares sold | 23 | 35 | $ 277 | $ 435 |
Reinvestment of distributions | 3 | 6 | 35 | 80 |
Shares redeemed | (32) | (52) | (388) | (644) |
Net increase (decrease) | (6) | (11) | $ (76) | $ (129) |
Class C | ||||
Shares sold | 91 | 252 | $ 1,117 | $ 3,089 |
Reinvestment of distributions | 8 | 20 | 95 | 246 |
Shares redeemed | (146) | (277) | (1,776) | (3,408) |
Net increase (decrease) | (47) | (5) | $ (564) | $ (73) |
California Municipal Income | ||||
Shares sold | 14,692 | 22,440 | $ 179,061 | $ 276,678 |
Reinvestment of distributions | 2,048 | 4,248 | 24,964 | 52,369 |
Shares redeemed | (18,441) | (25,430) | (223,770) | (312,547) |
Net increase (decrease) | (1,701) | 1,258 | $ (19,745) | $ 16,500 |
Institutional Class | ||||
Shares sold | 147 | 671 | $ 1,773 | $ 8,296 |
Reinvestment of distributions | 5 | 9 | 67 | 112 |
Shares redeemed | (94) | (217) | (1,142) | (2,676) |
Net increase (decrease) | 58 | 463 | $ 698 | $ 5,732 |
Semiannual Report
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity California Municipal Income Fund
Each year, typically in June, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract and sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information throughout the year.
The Board meets regularly each month except August and takes into account throughout the year matters bearing on Advisory Contracts. The Board, acting directly and through its separate committees, considers at each of its meetings factors that are relevant to the annual renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. At the time of the renewal, the Board had 12 standing committees, each composed of Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. Each committee has adopted a written charter outlining the structure and purposes of the committee. One such committee, the Fixed-Income Contract Committee, meets periodically as needed throughout the year to consider matters specifically related to the annual renewal of Advisory Contracts. The committee requests and receives information on, and makes recommendations to the Independent Trustees concerning, the approval and annual review of the Advisory Contracts.
At its June 2007 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew the Advisory Contracts for the fund. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the management fee and total expenses of the fund; (iii) the total costs of the services to be provided by and the profits to be realized by the investment adviser and its affiliates from the relationship with the fund; (iv) the extent to which economies of scale would be realized as the fund grows; and (v) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders. The Board also approved amendments to the fund's agreements with foreign sub-advisers to clarify that each sub-adviser provides services as an independent contractor.
In determining whether to renew the Advisory Contracts for the fund, the Board ultimately reached a determination, with the assistance of fund counsel and Independent Trustees' counsel, that the renewal of the Advisory Contracts and the compensation to be received by Fidelity under the management contract is consistent with Fidelity's fiduciary duty under applicable law. In addition to evaluating the specific factors noted above, the Board, in reaching its determination, is aware that shareholders in the fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by competitors to Fidelity, and that the fund's shareholders, with the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, managed by Fidelity.
Semiannual Report
Nature, Extent, and Quality of Services Provided. The Board considered staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the background of the fund's portfolio manager and the fund's investment objective and discipline. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives.
Resources Dedicated to Investment Management and Support Services. The Board reviewed the size, education, and experience of the Investment Advisers' investment staff, their use of technology, and the Investment Advisers' approach to recruiting, training, and retaining portfolio managers and other research, advisory, and management personnel. The Board considered Fidelity's extensive global research capabilities that enable the Investment Advisers to aggregate data from various sources in an effort to produce positive investment results. The Board noted that Fidelity's analysts have access to a variety of technological tools that enable them to perform both fundamental and quantitative analysis and to specialize in various disciplines. The Board also considered that Fidelity's portfolio managers and analysts have access to daily portfolio attribution that allows for monitoring of a fund's portfolio, as well as an electronic communication system that provides immediate real-time access to research concerning issuers and credit enhancers. In addition, the Board considered the trading resources that are an integrated part of the fixed-income portfolio management investment process.
Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, distribution, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency and pricing and bookkeeping services for the fund; (ii) the nature and extent of the Investment Advisers' supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures.
The Board noted that the growth of fund assets across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through phone representatives and over the Internet, and investor education materials and asset allocation tools.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing for a large variety of mutual fund investor services. For example, fund shareholders are offered the privilege of exchanging shares of the fund for shares of other Fidelity funds, as set forth in the fund's prospectus, without paying a sales charge. The Board noted that, since the last Advisory Contract renewals in June 2006, Fidelity has taken a number of actions that benefited particular funds, including (i) dedicating additional resources to investment research and to restructure the investment research teams; (ii) contractually agreeing to reduce the management fee on Fidelity Advisor Floating Rate High Income Fund; (iii) contractually agreeing to reduce the management fees on Fidelity's California, Massachusetts, New Jersey, and New York AMT Tax-Free Money Market Funds, launching new Institutional Classes and Service Classes of these funds, and contractually agreeing to impose expense limitations on these funds; (iv) eliminating the exchange fee on the Fidelity Select Portfolios and reducing the pricing and bookkeeping fee rates for these funds; (v) reducing the maximum transfer agency fee rates on high income funds and certain equity funds; (vi) proposing amended management contracts that, if approved by shareholders, will add a performance adjustment component to the management fees paid by 18 Fidelity Advisor equity funds; (vii) contractually agreeing to reduce fees for Ultra-Short Central Fund and the money market Central Funds; (viii) waiving the Fidelity Advisor funds' contingent deferred sales charge on certain redemptions made through systematic withdrawal programs; and (ix) amending the management contracts for equity and fixed-income funds whose management contracts incorporate a "group fee" structure by adding four new fee "breakpoints" to the group fee rate schedules.
Investment Performance. The Board considered whether the fund has operated within its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed the fund's absolute investment performance for each class, as well as the fund's relative investment performance for each class measured against (i) a broad-based securities market index, and (ii) a peer group of mutual funds deemed appropriate by the Board over multiple periods. The following charts considered by the Board show, over the one-, three-, and five-year periods ended December 31, 2006, as available, the cumulative total returns of Fidelity California Municipal Income (retail class) and Class C, the cumulative total returns of a broad-based securities market index ("benchmark"), and a range of cumulative total returns of a peer group of mutual funds identified by Lipper Inc. as having an investment objective similar to that of the fund. The returns of Fidelity California Municipal Income (retail class) and Class C show the performance of the highest and lowest performing classes, respectively (based on three-year performance). The box within each chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten numbers noted below each chart correspond to the percentile box and represent the percentage of funds in the peer group whose performance was equal to or lower than that of the class indicated.
Semiannual Report
Fidelity California Municipal Income Fund
The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of Fidelity California Municipal Income (retail class) was in the second quartile for all the periods shown. The Board also stated that the relative investment performance of the fund was lower than its benchmark for all the periods shown. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board discussed with FMR actions to be taken by FMR to improve the fund's below-benchmark performance.
Based on its review, and giving particular weight to the nature and quality of the resources dedicated by the Investment Advisers to maintain and improve relative performance, the Board concluded that the nature, extent, and quality of the services provided to the fund will benefit the fund's shareholders, particularly in light of the Board's view that the fund's shareholders benefit from investing in a fund that is part of a large family of funds offering a variety of investment disciplines and services.
Competitiveness of Management Fee and Total Fund Expenses. The Board considered the fund's management fee and total expenses compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management fee and total expense comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
The Board considered two proprietary management fee comparisons for the 12-month periods shown in the chart below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group" and, for the reasons explained above, is broader than the Lipper peer group used by the Board for performance comparisons. The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors, in terms of gross management fees before expense reimbursements or caps. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than the fund's. For example, a TMG % of 8% means that 92% of the funds in the Total Mapped Group had higher management fees than the fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which the fund's management fee ranked, is also included in the chart and considered by the Board.
Fidelity California Municipal Income Fund
The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2006. Based on its review, the Board concluded that the fund's management fee was fair and reasonable in light of the services that the fund receives and the other factors considered.
Semiannual Report
In its review of each class's total expenses, the Board considered the fund's management fee as well as other fund or class expenses, as applicable, such as transfer agent fees, pricing and bookkeeping fees, fund-paid 12b-1 fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses. As part of its review, the Board also considered current and historical total expenses of each class of the fund compared to competitive fund median expenses. Each class of the fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.
The Board noted that each class's total expenses ranked below its competitive median for 2006.
In its review of total expenses, the Board also considered Fidelity fee structures and other information on clients that FMR and its affiliates service in other competitive markets, such as other mutual funds advised or subadvised by FMR or its affiliates, pension plan clients, and other institutional clients.
Based on its review, the Board concluded that the total expenses of each class of the fund were reasonable in light of the services that the fund and its shareholders receive and the other factors considered.
Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing the fund and its shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.
On an annual basis, FMR presents to the Board Fidelity's profitability for the fund. Fidelity calculates the profitability for each fund, as well as aggregate profitability for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the audited books and records of Fidelity. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.
PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of the results of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures surrounding the mathematical accuracy of fund profitability and its conformity to allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board believes that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
The Board has also reviewed Fidelity's non-fund businesses and any fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the fund's business.
The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund and determined that the amount of profit is a fair entrepreneurial profit for the management of the fund.
Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which the fund will benefit from economies of scale through increased services to the fund, through waivers or reimbursements, or through fee or expense reductions, including reductions that occur through operation of the transfer agent agreement. The transfer agent fee varies in part based on the number of accounts in the fund. If the number of accounts decreases or the average account size increases, the overall transfer agent fee rate decreases.
The Board recognized that the fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total fund assets under FMR's management increase, and for higher group fee rates as total fund assets under FMR's management decrease. FMR determines the group fee rates based on a tiered asset "breakpoint" schedule. In connection with the renewal of the fund's management contract, the Board approved amendments to the fund's management contract that added four new fee breakpoints to the group fee rate schedule for assets under FMR's management above $1,386 billion. The Board considered that the group fee rate declines under both the present and amended schedules, but that under the amended schedule, the group fee rate declines faster as assets under FMR's management exceed $1,386 billion. The Board considered that the group fee is designed to deliver the benefits of economies of scale to fund shareholders when total fund assets increase, even if assets of any particular fund are unchanged or have declined, because some portion of Fidelity's costs are attributable to services provided to all Fidelity funds, and all funds benefit if those costs can be allocated among more assets. The Board concluded that, given the group fee structure, fund shareholders will achieve a certain level of economies of scale as assets under FMR's management increase at the fund complex level, regardless of whether Fidelity achieves any such economies of scale.
The Board further concluded that any potential economies of scale are being shared between fund shareholders and Fidelity in an appropriate manner.
Semiannual Report
Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on several topics, including (i) Fidelity's fund profitability methodology, profitability by investment discipline, and profitability trends within certain funds; (ii) Fidelity's compensation structure relative to competitors and its effect on profitability; (iii) funds and accounts managed by Fidelity other than the Fidelity funds, including fee arrangements; (iv) the total expenses of certain funds and classes relative to competitors; (v) fund performance trends; (vi) fall-out benefits received by certain Fidelity affiliates; and (vii) Fidelity's fee structures.
Based on its evaluation of all of the conclusions noted above, and after considering all material factors, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that the fund's Advisory Contracts should be renewed.
Semiannual Report
Investment Adviser
Fidelity Management & Research
Company
Boston, MA
Investment Sub-Advisers
Fidelity Investments Money
Management, Inc.
Fidelity Research & Analysis Company
Fidelity International Investment Advisors
Fidelity International Investment Advisors
(U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Citibank, N.A.
New York, NY
Fidelity Service Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
The Fidelity Telephone Connection
Mutual Fund 24-Hour Service
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
Retirement Accounts 1-800-544-4774 (8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
Fidelity Automated Service
Telephone (FAST®) (automated graphic) 1-800-544-5555
(automated graphic) Automated line for quickest service
CFL-USAN-1007
1.790942.104
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor
California Municipal Income
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
August 31, 2007
Class A, Class T, Class B, and Class C are classes of Fidelity® California Municipal Income Fund
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | Ned Johnson's message to shareholders. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past 12 months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, | |
Notes | Notes to the financial statements. | |
Board Approval of Investment Advisory Contracts and Management Fees |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent quarterly holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Many stock and bond markets around the world have been unsettled of late; however, volatility can often lead to opportunity for patient investors. Financial markets are always unpredictable, but there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (March 1, 2007 to August 31, 2007).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. 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 the 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 transaction costs. Therefore, the second line of 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.
Beginning | Ending | Expenses Paid | |
Class A | |||
Actual | $ 1,000.00 | $ 993.10 | $ 3.61 |
Hypothetical A | $ 1,000.00 | $ 1,021.52 | $ 3.66 |
Class T | |||
Actual | $ 1,000.00 | $ 993.00 | $ 3.71 |
Hypothetical A | $ 1,000.00 | $ 1,021.42 | $ 3.76 |
Class B | |||
Actual | $ 1,000.00 | $ 989.70 | $ 7.00 |
Hypothetical A | $ 1,000.00 | $ 1,018.10 | $ 7.10 |
Beginning | Ending | Expenses Paid | |
Class C | |||
Actual | $ 1,000.00 | $ 989.20 | $ 7.50 |
Hypothetical A | $ 1,000.00 | $ 1,017.60 | $ 7.61 |
California Municipal Income | |||
Actual | $ 1,000.00 | $ 994.30 | $ 2.36 |
Hypothetical A | $ 1,000.00 | $ 1,022.77 | $ 2.39 |
Institutional Class | |||
Actual | $ 1,000.00 | $ 994.10 | $ 2.56 |
Hypothetical A | $ 1,000.00 | $ 1,022.57 | $ 2.59 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).
Annualized | |
Class A | .72% |
Class T | .74% |
Class B | 1.40% |
Class C | 1.50% |
California Municipal Income | .47% |
Institutional Class | .51% |
Semiannual Report
Investment Changes
Top Five Sectors as of August 31, 2007 | ||
% of fund's | % of fund's net assets | |
General Obligations | 41.3 | 34.9 |
Transportation | 10.8 | 10.2 |
Escrowed/Pre-Refunded | 9.3 | 8.7 |
Water & Sewer | 7.5 | 6.7 |
Education | 7.0 | 7.5 |
Weighted Average Maturity as of August 31, 2007 | ||
6 months ago | ||
Years | 7.7 | 6.5 |
The weighted average maturity is based on the dollar-weighted average length of time until principal payments are expected or until securities reach maturity. Effective May 2007, the calculation was modified taking into account any maturity shortening feature such as a call, refunding or redemption provision. The prior period figure reflects this change. |
Duration as of August 31, 2007 | ||
6 months ago | ||
Years | 6.7 | 6.2 |
Duration shows how much a bond fund's price fluctuates with changes in comparable interest rates. If rates rise 1%, for example, a fund with a five-year duration is likely to lose about 5% of its value. Other factors also can influence a bond fund's performance and share price. Accordingly, a bond fund's actual performance may differ from this example. |
Quality Diversification (% of fund's net assets) | |||||||
As of August 31, 2007 | As of February 28, 2007 | ||||||
![]() | AAA 58.0% | ![]() | AAA 57.9% | ||||
![]() | AA,A 37.8% | ![]() | AA,A 34.1% | ||||
![]() | BBB 2.5% | ![]() | BBB 4.6% | ||||
![]() | BB and Below 0.8% | ![]() | BB and Below 0.3% | ||||
![]() | Not Rated 1.7% | ![]() | Not Rated 2.0% | ||||
![]() | Short-Term | ![]() | Short-Term |
We have used ratings from Moody's® Investors Services, Inc. Where Moody's ratings are not available, we have used S&P® ratings. |
*Short-Term Investments and Net Other Assets are not included in the pie chart.
Semiannual Report
Investments August 31, 2007 (Unaudited)
Showing Percentage of Net Assets
Municipal Bonds - 100.8% | ||||
Principal Amount (000s) | Value (000s) | |||
California - 99.6% | ||||
ABAG Fin. Auth. for Nonprofit Corp. Rev. (Hamlin School Proj.): | ||||
4.625% 8/1/16 | $ 380 | $ 361 | ||
4.625% 8/1/17 | 405 | 381 | ||
5% 8/1/18 | 530 | 511 | ||
5% 8/1/19 | 555 | 531 | ||
5% 8/1/20 | 585 | 556 | ||
5% 8/1/23 | 1,940 | 1,811 | ||
ABC Unified School District: | ||||
Series C, 0% 8/1/31 (FGIC Insured) | 2,720 | 816 | ||
0% 8/1/32 (FGIC Insured) | 3,760 | 1,070 | ||
Alameda Corridor Trans. Auth. Rev. Series A, 5.25% 10/1/21 (MBIA Insured) | 7,575 | 7,842 | ||
Alameda County Ctfs. of Prtn.: | ||||
(Santa Rita Jail Proj.) Series A: | ||||
5% 12/1/18 (AMBAC Insured) | 2,645 | 2,819 | ||
5% 12/1/20 (AMBAC Insured) | 2,810 | 2,943 | ||
0% 6/15/17 (MBIA Insured) | 2,310 | 1,504 | ||
Alhambra Unified School District Series 2004 A, 5% 8/1/25 (FGIC Insured) | 1,880 | 1,936 | ||
Anaheim Pub. Fing. Auth. Lease Rev. (Anaheim Pub. Impt. Proj.): | ||||
Series A, 6% 9/1/24 (FSA Insured) | 1,000 | 1,159 | ||
Series C: | ||||
0% 9/1/19 (FSA Insured) | 1,285 | 743 | ||
0% 9/1/22 (FSA Insured) | 5,150 | 2,511 | ||
Antelope Valley Cmnty. College District 5.25% 8/1/39 (MBIA Insured) (b) | 3,500 | 3,637 | ||
Azusa Unified School District 5.375% 7/1/16 (FSA Insured) | 1,225 | 1,310 | ||
Bay Area Infrastructure Fing. Auth.: | ||||
5% 8/1/17 (AMBAC Insured) | 5,000 | 5,205 | ||
5% 8/1/17 (FGIC Insured) | 5,030 | 5,343 | ||
Burbank Glendale Pasadena Arpt. Auth. Rev. Series 2005 B: | ||||
5% 7/1/12 (AMBAC Insured) (d) | 1,840 | 1,917 | ||
5.25% 7/1/14 (AMBAC Insured) (d) | 2,035 | 2,164 | ||
5.25% 7/1/16 (AMBAC Insured) (d) | 1,255 | 1,339 | ||
5.25% 7/1/17 (AMBAC Insured) (d) | 1,370 | 1,455 | ||
Burbank Unified School District: | ||||
Series B, 0% 8/1/20 (FGIC Insured) | 3,835 | 2,116 | ||
Series C, 0% 8/1/20 (FGIC Insured) | 5,865 | 3,237 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
California - continued | ||||
Butte-Glenn Cmnty. College District Series A, 5.5% 8/1/18 (MBIA Insured) | $ 1,085 | $ 1,171 | ||
Cabrillo Cmnty. College District Series A, 5.25% 8/1/15 (MBIA Insured) | 1,725 | 1,865 | ||
Cabrillo Unified School District Series A: | ||||
0% 8/1/10 (AMBAC Insured) | 2,150 | 1,929 | ||
0% 8/1/12 (AMBAC Insured) | 2,800 | 2,317 | ||
0% 8/1/17 (AMBAC Insured) | 1,000 | 650 | ||
0% 8/1/18 (AMBAC Insured) | 2,000 | 1,234 | ||
California Dept. of Wtr. Resources Pwr. Supply Rev. Series A: | ||||
5% 5/1/17 | 1,000 | 1,040 | ||
5.5% 5/1/14 (AMBAC Insured) | 7,935 | 8,582 | ||
5.5% 5/1/15 (AMBAC Insured) | 9,000 | 9,702 | ||
6% 5/1/13 | 2,320 | 2,541 | ||
6% 5/1/14 | 7,500 | 8,200 | ||
6% 5/1/14 (MBIA Insured) | 2,000 | 2,201 | ||
California Dept. of Wtr. Resources Rev. (Wtr. Sys. Proj.) Series J1, 7% 12/1/12 | 730 | 841 | ||
California Econ. Recovery Series A: | ||||
5% 7/1/15 | 12,275 | 13,076 | ||
5% 7/1/15 (MBIA Insured) | 9,300 | 9,936 | ||
5.25% 7/1/13 | 3,000 | 3,227 | ||
5.25% 7/1/14 | 3,540 | 3,830 | ||
California Edl. Facilities Auth. Rev.: | ||||
(Chapman Univ. Proj.) 5.375% 10/1/16 (AMBAC Insured) | 510 | 516 | ||
(College & Univ. Fing. Prog.): | ||||
5% 2/1/16 | 1,600 | 1,587 | ||
5% 2/1/17 | 1,000 | 988 | ||
(Loyola Marymount Univ. Proj.) 0% 10/1/16 (MBIA Insured) | 2,280 | 1,550 | ||
(Pomona College Proj.) Series A, 0% 7/1/38 | 3,155 | 646 | ||
(Santa Clara Univ. Proj.): | ||||
5.25% 9/1/17 (AMBAC Insured) | 1,000 | 1,097 | ||
5.25% 9/1/26 | 7,910 | 8,307 | ||
(Scripps College Proj.): | ||||
Series 2001, 5.25% 8/1/26 | 1,000 | 1,020 | ||
5.125% 2/1/30 | 6,000 | 6,027 | ||
(Stanford Univ. Proj.): | ||||
Series N, 5.2% 12/1/27 | 20,000 | 20,235 | ||
Series O, 5.125% 1/1/31 | 5,000 | 5,053 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
California - continued | ||||
California Gen. Oblig.: | ||||
Series 1, 5% 9/1/17 | $ 2,000 | $ 2,113 | ||
Series 1992, 6.25% 9/1/12 (FGIC Insured) | 2,000 | 2,178 | ||
Series 2005, 5.5% 6/1/28 | 275 | 282 | ||
Series 2007: | ||||
5.625% 5/1/20 | 150 | 157 | ||
5.625% 5/1/20 (Pre-Refunded to 5/1/10 @ 101) (e) | 255 | 270 | ||
5.625% 5/1/26 | 215 | 223 | ||
5.625% 5/1/26 (Pre-Refunded to 5/1/10 @ 101) (e) | 80 | 85 | ||
5.75% 5/1/30 | 160 | 166 | ||
5.75% 5/1/30 (Pre-Refunded to 5/1/10 @ 101) (e) | 60 | 64 | ||
4.5% 8/1/30 | 5,000 | 4,674 | ||
4.5% 10/1/36 | 5,000 | 4,554 | ||
5% 2/1/11 | 3,000 | 3,122 | ||
5% 11/1/12 | 4,105 | 4,304 | ||
5% 3/1/13 | 1,095 | 1,157 | ||
5% 3/1/15 | 3,050 | 3,242 | ||
5% 8/1/18 | 48,010 | 50,622 | ||
5% 8/1/21 | 5,000 | 5,174 | ||
5% 12/1/21 | 10,000 | 10,343 | ||
5% 2/1/23 | 1,095 | 1,116 | ||
5% 2/1/26 (AMBAC Insured) | 1,500 | 1,531 | ||
5% 3/1/26 | 2,800 | 2,841 | ||
5% 6/1/26 | 4,300 | 4,357 | ||
5% 6/1/27 (AMBAC Insured) | 2,800 | 2,866 | ||
5% 6/1/29 | 5,005 | 5,040 | ||
5% 2/1/31 (MBIA Insured) | 2,800 | 2,841 | ||
5% 3/1/31 | 4,600 | 4,622 | ||
5% 4/1/31 (AMBAC Insured) | 5 | 5 | ||
5% 6/1/31 | 2,000 | 2,009 | ||
5% 12/1/31 (MBIA Insured) | 2,000 | 2,035 | ||
5% 9/1/32 | 4,200 | 4,218 | ||
5% 9/1/32 | 10,000 | 10,043 | ||
5% 10/1/32 (MBIA Insured) | 1,000 | 1,017 | ||
5% 8/1/33 | 3,400 | 3,411 | ||
5% 9/1/33 | 10,000 | 10,036 | ||
5% 8/1/35 | 6,200 | 6,212 | ||
5% 9/1/35 | 9,400 | 9,419 | ||
5.125% 11/1/24 | 2,800 | 2,869 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
California - continued | ||||
California Gen. Oblig.: - continued | ||||
5.125% 2/1/26 | $ 2,800 | $ 2,859 | ||
5.25% 2/1/11 | 5,790 | 6,071 | ||
5.25% 3/1/11 | 1,405 | 1,475 | ||
5.25% 3/1/12 | 3,000 | 3,181 | ||
5.25% 10/1/14 | 300 | 300 | ||
5.25% 2/1/15 | 2,315 | 2,470 | ||
5.25% 2/1/15 (MBIA Insured) | 5,040 | 5,396 | ||
5.25% 2/1/16 | 7,500 | 7,984 | ||
5.25% 2/1/16 (MBIA Insured) | 4,050 | 4,308 | ||
5.25% 10/1/17 | 260 | 260 | ||
5.25% 11/1/18 | 3,000 | 3,179 | ||
5.25% 2/1/20 | 6,805 | 7,132 | ||
5.25% 2/1/22 | 2,020 | 2,103 | ||
5.25% 11/1/26 | 1,000 | 1,032 | ||
5.25% 2/1/27 (MBIA Insured) | 5,490 | 5,696 | ||
5.25% 4/1/27 | 5 | 5 | ||
5.25% 2/1/28 | 5,085 | 5,225 | ||
5.25% 4/1/29 | 5 | 5 | ||
5.25% 11/1/29 | 5,000 | 5,134 | ||
5.25% 4/1/30 | 35 | 36 | ||
5.25% 2/1/33 | 8,150 | 8,322 | ||
5.25% 12/1/33 | 105 | 108 | ||
5.25% 12/1/33 (Pre-Refunded to 6/1/14 @ 100) (e) | 5,395 | 5,863 | ||
5.375% 4/1/15 (MBIA Insured) | 35 | 37 | ||
5.5% 6/1/10 | 1,625 | 1,701 | ||
5.5% 3/1/11 (XL Cap. Assurance, Inc. Insured) | 3,050 | 3,229 | ||
5.5% 5/1/13 (MBIA Insured) | 100 | 106 | ||
5.5% 4/1/28 | 5 | 5 | ||
5.5% 4/1/30 | 25 | 26 | ||
5.5% 11/1/33 | 34,870 | 36,534 | ||
5.75% 10/1/10 | 7,325 | 7,759 | ||
5.75% 12/1/10 | 2,500 | 2,656 | ||
6% 4/1/18 | 2,545 | 2,912 | ||
6.75% 8/1/10 | 5,675 | 6,141 | ||
6.75% 8/1/12 | 1,100 | 1,242 | ||
California Health Facilities Fing. Auth. Rev.: | ||||
(Catholic Healthcare West Proj.) Series I, 4.95%, tender 7/1/14 (c) | 5,000 | 5,142 | ||
(Cedars-Sinai Med. Ctr. Proj.) 5% 11/15/14 | 1,485 | 1,547 | ||
(Cottage Health Sys. Proj.) Series B, 5.25% 11/1/18 (MBIA Insured) | 1,260 | 1,331 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
California - continued | ||||
California Hsg. Fin. Agcy. Rev.: | ||||
Series 1983 A, 0% 2/1/15 | $ 7,592 | $ 4,214 | ||
Series 1983 B, 0% 8/1/15 | 95 | 43 | ||
Series J, 4.85% 8/1/27 (MBIA Insured) (d) | 865 | 870 | ||
California Infrastructure & Econ. Dev. Bank Rev.: | ||||
(YMCA Metropolitan L.A. Proj.) Series 2001: | ||||
5.25% 2/1/26 (AMBAC Insured) | 2,000 | 2,085 | ||
5.25% 2/1/32 (AMBAC Insured) | 6,295 | 6,533 | ||
Series B, 5% 5/1/19 (FGIC Insured) | 1,000 | 1,055 | ||
Series C, 3.9%, tender 12/1/11 (c) | 2,150 | 2,167 | ||
5% 12/1/27 | 1,080 | 1,083 | ||
5% 12/1/32 | 1,000 | 993 | ||
5% 10/1/33 | 7,235 | 7,360 | ||
5% 12/1/42 | 3,000 | 2,941 | ||
California Poll. Cont. Fing. Auth. Ctfs. of Prtn. (San Diego Gas & Elec. Co. Proj.) 5.9% 6/1/14 (MBIA Insured) | 4,000 | 4,477 | ||
California Poll. Cont. Fing. Auth. Solid Waste Disp. Rev. (Waste Mgmt., Inc. Proj.): | ||||
Series A, 5.125%, tender 5/1/14 (c)(d) | 9,000 | 9,073 | ||
Series A1, 4.7%, tender 4/1/12 (c)(d) | 3,250 | 3,226 | ||
California Pub. Works Board Lease Rev.: | ||||
(Butterfield State Office Complex Proj.) Series 2005 A: | ||||
5% 6/1/13 | 2,500 | 2,641 | ||
5% 6/1/14 | 2,000 | 2,119 | ||
5.25% 6/1/24 | 5,400 | 5,569 | ||
5.25% 6/1/25 | 5,000 | 5,144 | ||
5.25% 6/1/30 | 4,000 | 4,073 | ||
(California Cmnty. College Projs.) Series A, 5.25% 12/1/16 | 4,450 | 4,564 | ||
(California State Univ. Proj.): | ||||
Series 2006 G: | ||||
5% 11/1/20 | 1,825 | 1,883 | ||
5% 11/1/21 | 2,020 | 2,074 | ||
Series A, 5% 10/1/14 (FGIC Insured) | 2,700 | 2,887 | ||
(Capitol East End Complex-Blocks 171-174 & 225 Proj.) Series A, 5.25% 12/1/18 (AMBAC Insured) | 5,000 | 5,280 | ||
(Coalinga State Hosp. Proj.): | ||||
Series 2004 A, 5.5% 6/1/17 | 9,980 | 10,734 | ||
Series A: | ||||
5.25% 6/1/12 | 2,485 | 2,636 | ||
5.5% 6/1/15 | 1,000 | 1,083 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
California - continued | ||||
California Pub. Works Board Lease Rev.: - continued | ||||
(Dept. of Corrections & Rehab. Proj.) Series F: | ||||
5% 11/1/15 (FGIC Insured) | $ 2,455 | $ 2,633 | ||
5% 11/1/16 (FGIC Insured) | 2,000 | 2,147 | ||
(Dept. of Corrections State Prison Proj.) Series E: | ||||
5.5% 6/1/15 (FSA Insured) | 2,000 | 2,150 | ||
5.5% 6/1/15 (MBIA Insured) | 1,000 | 1,075 | ||
(Dept. of Corrections, Madera State Prison Proj.) Series E, 5.5% 6/1/15 | 8,775 | 9,387 | ||
(Dept. of Corrections, Monterey County State Prison Proj.) Series C: | ||||
5.5% 6/1/15 | 6,100 | 6,576 | ||
5.5% 6/1/17 (MBIA Insured) | 4,775 | 5,164 | ||
(Dept. of Corrections, Susanville State Prison Proj.) Series D, 5.25% 6/1/15 (FSA Insured) | 4,050 | 4,355 | ||
(Dept. of Gen. Services Butterfield Proj.) Series A, 5% 6/1/23 | 2,900 | 2,944 | ||
(Kern County at Delano II Proj.) Series 2003 C, 5.5% 6/1/13 | 2,000 | 2,164 | ||
(Ten Administrative Segregation Hsg. Units Proj.) Series 2002 A, 5.25% 3/1/18 (AMBAC Insured) | 2,500 | 2,639 | ||
(Univ. of California Research Proj.): | ||||
Series E, 5% 10/1/23 | 2,410 | 2,479 | ||
5% 11/1/25 (MBIA Insured) | 5,165 | 5,304 | ||
(Univ. of California Revs. Proj.) Series E 5.25% 10/1/21 | 2,900 | 3,041 | ||
(Various California State Univ. Projs.) Series B, 6.4% 12/1/09 | 3,700 | 3,814 | ||
Series 2005 H, 5% 6/1/16 | 5,000 | 5,258 | ||
Series 2005 J, 5.25% 1/1/16 (AMBAC Insured) | 3,500 | 3,799 | ||
Series 2005 K, 5% 11/1/17 | 5,625 | 5,893 | ||
California State Univ. Rev.: | ||||
(Systemwide Proj.) Series A: | ||||
5.375% 11/1/18 (AMBAC Insured) | 1,290 | 1,384 | ||
5.5% 11/1/16 (AMBAC Insured) | 1,500 | 1,620 | ||
5% 11/1/16 (FSA Insured) | 1,000 | 1,082 | ||
5% 11/1/17 (FSA Insured) | 1,225 | 1,325 | ||
California Statewide Communities Dev. Auth. Poll. Cont. Rev. (Southern California Edison Co.) 4.1%, tender 4/1/13 (XL Cap. Assurance, Inc. Insured) (c) | 9,700 | 9,801 | ||
California Statewide Communities Dev. Auth. Rev.: | ||||
(Cmnty. Hosp. Monterey Peninsula Proj.) Series B, 5.25% 6/1/23 (FSA Insured) | 1,800 | 1,881 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
California - continued | ||||
California Statewide Communities Dev. Auth. Rev.: - continued | ||||
(Daughters of Charity Health Sys. Proj.): | ||||
Series G, 5.25% 7/1/12 | $ 900 | $ 936 | ||
5.25% 7/1/13 | 1,475 | 1,539 | ||
(Kaiser Fund Hosp./Health Place, Inc. Proj.) Series 2002 C, 3.85%, tender 6/1/12 (c) | 3,000 | 2,951 | ||
(Kaiser Permanente Health Sys. Proj.): | ||||
Series 2004 H, 2.625%, tender 5/1/08 (c) | 1,795 | 1,780 | ||
Series B, 4.3712% 4/1/36 (c) | 6,500 | 5,852 | ||
Series I, 3.45%, tender 5/1/11 (c) | 2,750 | 2,677 | ||
(Kaiser Permanente Proj.) Series A, 4.75% 4/1/33 | 2,000 | 1,884 | ||
(Los Angeles Orthopaedic Hosp. Foundation Prog.) 5.75% 6/1/30 (AMBAC Insured) | 10,000 | 10,115 | ||
(Sutter Health Systems Proj.): | ||||
Series B, 5.625% 8/15/42 | 5,000 | 5,126 | ||
5% 11/15/43 (MBIA Insured) | 4,125 | 4,144 | ||
(Thomas Jefferson School of Law Proj.) 7.75% 10/1/31 (Pre-Refunded to 10/1/11 @ 101) (e) | 1,460 | 1,669 | ||
California Statewide Communities Dev. Auth. Rev. Ctfs. of Prtn. (Catholic Health Care West Proj.): | ||||
6% 7/1/09 (Escrowed to Maturity) (e) | 300 | 308 | ||
6% 7/1/09 (Escrowed to Maturity) (e) | 985 | 1,011 | ||
Carlsbad Unified School District 0% 11/1/15 (FGIC Insured) | 1,700 | 1,210 | ||
Castaic Lake Wtr. Agcy. Ctfs. of Prtn. (Wtr. Sys. Impt. Proj.) Series A, 7% 8/1/11 (MBIA Insured) | 1,500 | 1,679 | ||
Clovis Pub. Fing. Auth. Wastewtr. Rev. 5% 8/1/35 (MBIA Insured) | 3,295 | 3,353 | ||
Colton Joint Unified School District Series 2001 C, 5.25% 2/1/22 (FGIC Insured) | 1,200 | 1,272 | ||
Commerce Refuse To Energy Auth. Rev.: | ||||
5.5% 7/1/14 (MBIA Insured) | 1,545 | 1,700 | ||
5.5% 7/1/15 (MBIA Insured) | 2,685 | 2,972 | ||
Contra Costa County Ctfs. of Prtn. (Merrithew Memorial Hosp. Proj.) 0% 11/1/14 (Escrowed to Maturity) (e) | 3,000 | 2,271 | ||
Corona-Norco Unified School District Series A: | ||||
5% 8/1/19 (FSA Insured) | 2,570 | 2,725 | ||
5% 8/1/22 (FSA Insured) | 1,470 | 1,534 | ||
5% 8/1/25 (FSA Insured) | 1,435 | 1,485 | ||
5% 8/1/26 (FSA Insured) | 2,000 | 2,065 | ||
5% 8/1/27 (FSA Insured) | 1,785 | 1,838 | ||
5% 8/1/31 (FSA Insured) | 5,000 | 5,118 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
California - continued | ||||
Ctr. Unified School District: | ||||
Series 1997 C, 0% 9/1/20 (MBIA Insured) | $ 2,000 | $ 1,099 | ||
Series C, 0% 9/1/18 (MBIA Insured) | 2,000 | 1,229 | ||
Cucamonga County Wtr. District 5% 9/1/36 (MBIA Insured) | 2,890 | 2,934 | ||
Davis Spl. Tax Rev.: | ||||
5% 9/1/11 (AMBAC Insured) | 595 | 623 | ||
5% 9/1/12 (AMBAC Insured) | 625 | 659 | ||
5% 9/1/13 (AMBAC Insured) | 655 | 695 | ||
5% 9/1/14 (AMBAC Insured) | 690 | 735 | ||
5% 9/1/15 (AMBAC Insured) | 725 | 774 | ||
5% 9/1/18 (AMBAC Insured) | 835 | 882 | ||
5% 9/1/20 (AMBAC Insured) | 925 | 964 | ||
5% 9/1/22 (AMBAC Insured) | 1,020 | 1,053 | ||
Duarte Ctfs. of Prtn. Series A: | ||||
5% 4/1/11 | 2,780 | 2,832 | ||
5% 4/1/12 | 4,210 | 4,285 | ||
5% 4/1/13 | 1,830 | 1,862 | ||
5.25% 4/1/09 | 1,600 | 1,624 | ||
East Bay Muni. Util. District Wtr. Sys. Rev. Series 2005 A, 5% 6/1/35 (MBIA Insured) | 15,600 | 15,920 | ||
El Centro Fing. Auth. Wastewtr. Series A, 5.25% 10/1/35 (FSA Insured) | 8,340 | 8,657 | ||
Elk Grove Fin. Auth. Spl. Tax Rev. 5% 9/1/17 (AMBAC Insured) | 2,420 | 2,557 | ||
Elk Grove Unified School District Spl. Tax (Cmnty. Facilities District #1 Proj.) 6.5% 12/1/24 (AMBAC Insured) | 4,025 | 4,958 | ||
Empire Union School District Spl. Tax (Cmnty. Facilities District No. 1987 Proj.) Series 1A: | ||||
0% 10/1/24 (AMBAC Insured) | 1,665 | 721 | ||
0% 10/1/25 (AMBAC Insured) | 1,665 | 683 | ||
Encinitas Union School District: | ||||
0% 8/1/10 (MBIA Insured) | 1,000 | 897 | ||
0% 8/1/21 (MBIA Insured) | 1,000 | 521 | ||
Escondido Union High School District 0% 11/1/16 (Escrowed to Maturity) (e) | 3,500 | 2,412 | ||
Fairfield-Suisun Swr. District Swr. Rev. Series A, 0% 5/1/09 (MBIA Insured) | 2,080 | 1,956 | ||
Fairfield-Suisun Unified School District 5.5% 8/1/28 (MBIA Insured) | 3,000 | 3,204 | ||
Fillmore Pub. Fing. Auth. Rev. (Wtr. Recycling Fing. Proj.) 5% 5/1/37 (CDC IXIS Finl. Guaranty Insured) | 2,500 | 2,530 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
California - continued | ||||
Folsom Cordova Unified School District School Facilities Impt. District #1 Series A, 0% 10/1/20 (MBIA Insured) | $ 1,315 | $ 720 | ||
Foothill-De Anza Cmnty. College District: | ||||
0% 8/1/15 (MBIA Insured) | 2,430 | 1,755 | ||
0% 8/1/19 (MBIA Insured) | 5,365 | 3,151 | ||
0% 8/1/20 (MBIA Insured) | 6,425 | 3,568 | ||
Foothill/Eastern Trans. Corridor Agcy. Toll Road Rev.: | ||||
Series A: | ||||
0% 1/1/15 (Escrowed to Maturity) (e) | 18,535 | 13,849 | ||
0% 1/1/18 (Escrowed to Maturity) (e) | 1,000 | 636 | ||
5% 1/1/35 (MBIA Insured) | 24,070 | 24,289 | ||
0% 1/15/27 (a) | 4,000 | 3,671 | ||
0% 1/15/27 (MBIA Insured) (a) | 4,500 | 4,330 | ||
0% 1/15/29 (a) | 4,000 | 3,657 | ||
5% 1/15/16 (MBIA Insured) | 5,860 | 6,073 | ||
5.75% 1/15/40 | 8,155 | 8,234 | ||
Fremont Unified School District, Alameda County Series F, 0% 8/1/09 (MBIA Insured) | 1,000 | 931 | ||
Fullerton Univ. Foundation Auxiliary Organization Rev. Series A: | ||||
5.75% 7/1/25 (MBIA Insured) | 1,250 | 1,325 | ||
5.75% 7/1/30 (MBIA Insured) | 1,000 | 1,060 | ||
Glendora Unified School District Series 2005 A, 5.25% 8/1/26 (MBIA Insured) | 1,000 | 1,052 | ||
Golden State Tobacco Securitization Corp. Tobacco Settlement Rev.: | ||||
Series 2003 A1: | ||||
5% 6/1/21 (Pre-Refunded to 6/1/13 @ 100) (e) | 2,120 | 2,143 | ||
6.625% 6/1/40 (Pre-Refunded to 6/1/13 @ 100) (e) | 2,900 | 3,314 | ||
Series 2003 B, 5% 6/1/43 (Pre-Refunded to 6/1/13 @ 100) (e) | 5,000 | 5,299 | ||
Series A: | ||||
5% 6/1/45 | 13,425 | 13,052 | ||
5% 6/1/45 (FGIC Insured) | 3,000 | 3,015 | ||
Series A-1: | ||||
5% 6/1/11 | 1,500 | 1,531 | ||
5% 6/1/13 | 1,000 | 1,019 | ||
5% 6/1/14 | 2,000 | 2,031 | ||
5% 6/1/15 | 1,000 | 1,013 | ||
Series A1: | ||||
5% 6/1/12 | 1,400 | 1,428 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
California - continued | ||||
Golden State Tobacco Securitization Corp. Tobacco Settlement Rev.: - continued | ||||
Series A1: | ||||
5% 6/1/33 | $ 3,000 | $ 2,715 | ||
Series B: | ||||
5% 6/1/11 (Escrowed to Maturity) (e) | 3,610 | 3,776 | ||
5.5% 6/1/43 (Pre-Refunded to 6/1/13 @ 100) (e) | 6,300 | 6,837 | ||
Golden West Schools Fing. Auth. Rev. Series A, 0% 8/1/18 (MBIA Insured) | 2,750 | 1,687 | ||
Indio Pub. Fing. Auth. Lease Rev. Series B, 3.8%, tender 11/1/12 (AMBAC Insured) (c) | 2,500 | 2,502 | ||
La Quinta Redev. Agcy. Tax. Allocation (Area #1 Redev. Proj.) 7.3% 9/1/11 (MBIA Insured) | 555 | 628 | ||
Lancaster Fing. Auth. Tax Allocation Rev. 5% 2/1/31 (AMBAC Insured) | 3,445 | 3,486 | ||
Long Beach Hbr. Rev. Series A: | ||||
5% 5/15/14 (FGIC Insured) (d) | 2,000 | 2,102 | ||
5% 5/15/15 (FGIC Insured) (d) | 1,000 | 1,043 | ||
5% 5/15/22 (MBIA Insured) (d) | 2,735 | 2,771 | ||
6% 5/15/10 (FGIC Insured) (d) | 1,000 | 1,052 | ||
6% 5/15/12 (FGIC Insured) (d) | 3,500 | 3,800 | ||
Los Angeles Cmnty. Redev. Agcy. Lease Rev. (Vermont Manchester Social Services Proj.) 5% 9/1/21 (AMBAC Insured) | 2,805 | 2,874 | ||
Los Angeles County Ctfs. of Prtn.: | ||||
(Correctional Facilities Proj.) 0% 9/1/13 (Escrowed to Maturity) (e) | 3,380 | 2,685 | ||
(Disney Parking Proj.): | ||||
0% 3/1/10 | 2,000 | 1,812 | ||
0% 3/1/11 | 1,950 | 1,692 | ||
0% 3/1/12 | 2,180 | 1,805 | ||
0% 3/1/13 | 6,490 | 5,122 | ||
0% 9/1/14 (AMBAC Insured) | 3,860 | 2,895 | ||
0% 3/1/18 | 3,000 | 1,809 | ||
0% 3/1/19 | 3,200 | 1,821 | ||
0% 3/1/20 | 1,000 | 536 | ||
Los Angeles County Schools Regionalized Bus. Svcs. Corp. Ctfs. of Prtn. (Pooled Fing. Prog.) Series 2003 B: | ||||
5.375% 9/1/16 (FSA Insured) | 1,045 | 1,128 | ||
5.375% 9/1/17 (FSA Insured) | 1,095 | 1,180 | ||
5.375% 9/1/18 (FSA Insured) | 1,155 | 1,236 | ||
5.375% 9/1/19 (FSA Insured) | 1,210 | 1,289 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
California - continued | ||||
Los Angeles Ctfs. of Prtn. (Dept. Pub. Social Svcs. Proj.) Series A, 5.5% 8/1/24 (AMBAC Insured) | $ 3,700 | $ 3,836 | ||
Los Angeles Dept. Arpt. Rev.: | ||||
(Los Angeles Int'l. Arpt. Proj.) Series D, 5.625% 5/15/12 (FGIC Insured) (d) | 290 | 290 | ||
Series 2006 A: | ||||
5% 5/15/17 (MBIA Insured) (d) | 3,990 | 4,144 | ||
5% 5/15/18 (MBIA Insured) (d) | 1,410 | 1,460 | ||
Series A: | ||||
5% 5/15/16 (MBIA Insured) (d) | 1,000 | 1,055 | ||
5.25% 5/15/19 (FGIC Insured) | 3,000 | 3,147 | ||
Los Angeles Dept. of Wtr. & Pwr. Elec. Plant Rev.: | ||||
4.75% 8/15/12 (Escrowed to Maturity) (e) | 3,120 | 3,121 | ||
4.75% 8/15/16 (Escrowed to Maturity) (e) | 1,395 | 1,396 | ||
4.75% 10/15/20 (Escrowed to Maturity) (e) | 150 | 150 | ||
Los Angeles Dept. of Wtr. & Pwr. Wtrwks. Rev.: | ||||
Series 2001 A, 5.125% 7/1/41 | 15,000 | 15,173 | ||
Series 2004 C, 5% 7/1/34 (MBIA Insured) | 1,500 | 1,528 | ||
Series A, 5.125% 7/1/41 (MBIA Insured) | 3,000 | 3,050 | ||
5.5% 10/15/11 (Escrowed to Maturity) (e) | 3,670 | 3,777 | ||
Los Angeles Hbr. Dept. Rev.: | ||||
Series 2005 B, 5% 8/1/14 (FGIC Insured) (d) | 6,265 | 6,612 | ||
7.6% 10/1/18 (Escrowed to Maturity) (e) | 12,970 | 15,380 | ||
Los Angeles Unified School District: | ||||
Series 2004 A1, 5% 7/1/17 (MBIA Insured) | 3,000 | 3,176 | ||
Series H: | ||||
5% 7/1/18 (FSA Insured) | 1,500 | 1,608 | ||
5% 7/1/19 (FSA Insured) | 7,360 | 7,836 | ||
M-S-R Pub. Pwr. Agcy. San Juan Proj. Rev. Series D, 6.75% 7/1/20 (Escrowed to Maturity) (e) | 2,095 | 2,425 | ||
Manhattan Beach Unified School District Series A, 0% 9/1/09 (FGIC Insured) | 975 | 905 | ||
Marina Coast Wtr. District Ctfs. Prtn. 5% 6/1/37 (MBIA Insured) | 3,500 | 3,552 | ||
Merced Union High School District Series A, 0% 8/1/22 (FGIC Insured) | 1,100 | 542 | ||
Metropolitan Wtr. District of Southern California Wtrwks. Rev. Series 2005 A, 5% 7/1/35 (FSA Insured) | 17,800 | 18,204 | ||
Modesto Elementary School District, Stanislaus County Series A: | ||||
0% 8/1/21 (FGIC Insured) | 2,000 | 1,043 | ||
0% 8/1/25 (FGIC Insured) | 2,800 | 1,169 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
California - continued | ||||
Modesto Gen. Oblig. Ctfs. of Prtn.: | ||||
(Cmnty. Ctr. Refing. Proj.) Series A, 5% 11/1/23 (AMBAC Insured) | $ 2,500 | $ 2,639 | ||
(Golf Course Refing. Proj.) Series B, 5% 11/1/23 (FGIC Insured) | 1,585 | 1,674 | ||
Modesto Irrigation District Ctfs. of Prtn.: | ||||
(Geysers Geothermal Pwr. Proj.) Series 1986 A, 5% 10/1/17 (Escrowed to Maturity) (e) | 5,000 | 5,004 | ||
(Rfdg. and Cap. Impts Proj.) Series A, 0% 10/1/10 (Escrowed to Maturity) (e) | 2,270 | 2,015 | ||
Monrovia Unified School District Series B, 0% 8/1/33 (FGIC Insured) | 2,500 | 683 | ||
Montebello Unified School District 0% 6/1/26 (FSA Insured) | 1,580 | 630 | ||
Monterey County Ctfs. of Prtn. 5% 8/1/18 (AMBAC Insured) | 3,580 | 3,795 | ||
Moreland School District Series 2003 B, 0% 8/1/27 (FGIC Insured) | 1,485 | 556 | ||
Murrieta Valley Unified School District Series A, 0% 9/1/13 (FGIC Insured) | 1,500 | 1,183 | ||
Natomas Unified School District 5.25% 8/1/30 (FGIC Insured) | 5,150 | 5,358 | ||
New Haven Unified School District: | ||||
12% 8/1/16 (FSA Insured) | 1,500 | 2,381 | ||
12% 8/1/17 (FSA Insured) | 1,000 | 1,633 | ||
North City West School Facilities Fing. Auth. Spl. Tax: | ||||
Subseries B, 5.25% 9/1/23 (AMBAC Insured) | 1,530 | 1,645 | ||
Subseries C: | ||||
5% 9/1/16 (AMBAC Insured) | 1,000 | 1,073 | ||
5% 9/1/17 (AMBAC Insured) | 2,735 | 2,933 | ||
Northern California Gas Auth. #1 Gas Proj. Rev.: | ||||
Series A, 5% 7/1/11 | 2,300 | 2,361 | ||
4.041% 7/1/13 (c) | 9,000 | 8,725 | ||
Northern California Pwr. Agcy. Pub. Pwr. Rev. (Hydro Elec. #1 Proj.) Series A, 7.5% 7/1/23 (Pre-Refunded to 7/1/21 @ 100) (e) | 3,850 | 4,986 | ||
Northern California Transmission Auth. Rev. (Ore Trans. Proj.) Series A, 7% 5/1/13 (MBIA Insured) | 6,100 | 6,797 | ||
Novato Unified School District 5.25% 8/1/17 (FGIC Insured) | 1,000 | 1,060 | ||
Oakland Redev. Agcy. Sub Tax Allocation (Central District Redev. Proj.): | ||||
5% 9/1/21 (Escrowed to Maturity) (e) | 1,000 | 1,054 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
California - continued | ||||
Oakland Redev. Agcy. Sub Tax Allocation (Central District Redev. Proj.): - continued | ||||
5.5% 9/1/17 (FGIC Insured) | $ 3,000 | $ 3,211 | ||
Ontario Redev. Fing. Auth. Rev. (Ctr. City Cimarron #1 Proj.) 0% 8/1/10 (MBIA Insured) | 3,255 | 2,921 | ||
Orange County Local Trans. Auth. Sales Tax Rev. 6.2% 2/14/11 (AMBAC Insured) | 7,000 | 7,477 | ||
Orange County Pub. Fin. Auth. Waste Mgt. Sys. Rev.: | ||||
5.75% 12/1/09 (AMBAC Insured) (d) | 3,620 | 3,764 | ||
5.75% 12/1/11 (AMBAC Insured) (d) | 4,000 | 4,280 | ||
Orange County Pub. Fin. Lease Rev. (Juvenile Justice Ctr. Facility Proj.) 5.375% 6/1/16 (AMBAC Insured) | 3,770 | 4,043 | ||
Oxnard Fin. Auth. Solid Waste Rev.: | ||||
5% 5/1/09 (AMBAC Insured) (d) | 1,785 | 1,814 | ||
5% 5/1/10 (AMBAC Insured) (d) | 1,820 | 1,862 | ||
5% 5/1/12 (AMBAC Insured) (d) | 2,065 | 2,145 | ||
Oxnard Fing. Auth. Wastewtr. Rev. (Redwood Trunk Swr. and Headworks Proj.) Series A, 5% 6/1/29 (FGIC Insured) | 3,000 | 3,067 | ||
Palmdale Elementary School District Spl. Tax (Cmnty. Facilities District #90-1 Proj.) 5.8% 8/1/29 (FSA Insured) | 6,410 | 6,699 | ||
Placer County Union High School District Series A: | ||||
0% 8/1/20 (FGIC Insured) | 2,000 | 1,104 | ||
0% 8/1/21 (FGIC Insured) | 1,000 | 521 | ||
Placer County Wtr. Agcy. Rev. (Middle Fork Proj.) Series A, 3.75% 7/1/12 | 2,030 | 2,028 | ||
Pomona Unified School District Series C, 6% 8/1/30 (Escrowed to Maturity) (e) | 4,035 | 4,175 | ||
Port of Oakland Gen. Oblig.: | ||||
Series 2002 N, 5% 11/1/12 (MBIA Insured) (d) | 2,800 | 2,932 | ||
Series L, 5.5% 11/1/20 (FGIC Insured) (d) | 3,405 | 3,565 | ||
5% 11/1/15 (MBIA Insured) (d) | 5,850 | 6,106 | ||
5% 11/1/17 (MBIA Insured) (d) | 3,355 | 3,477 | ||
5% 11/1/18 (MBIA Insured) (d) | 2,740 | 2,828 | ||
Port of Oakland Port Rev. Series G, 5.375% 11/1/08 (MBIA Insured) (d) | 1,805 | 1,835 | ||
Poway Unified School District Pub. Fing. Auth. Lease Rev. Cap. Appreciation 0%, tender 6/1/10 (FSA Insured) (c) | 4,800 | 4,305 | ||
Redwood City Elementary School District 0% 8/1/20 (FGIC Insured) | 4,825 | 2,663 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
California - continued | ||||
Richmond Redev. Agcy. Tax Allocation Rev. (Harbour Redev. Proj.) 7% 7/1/09 (FSA Insured) | $ 35 | $ 35 | ||
Riverside County Asset Leasing Corp. Leasehold Rev. (Riverside County Hosp. Proj.): | ||||
Series A, 6.5% 6/1/12 (MBIA Insured) | 15,500 | 16,851 | ||
Series B, 5.7% 6/1/16 (MBIA Insured) | 1,950 | 2,110 | ||
Riverside County Pub. Fing. Auth. Tax Allocation Rev. (Redev. Projs.): | ||||
Series A, 5% 10/1/18 (XL Cap. Assurance, Inc. Insured) | 3,740 | 3,917 | ||
5.25% 10/1/20 (XL Cap. Assurance, Inc. Insured) | 2,020 | 2,116 | ||
5.25% 10/1/21 (XL Cap. Assurance, Inc. Insured) | 2,125 | 2,219 | ||
Rocklin Unified School District: | ||||
0% 8/1/24 (FGIC Insured) | 1,370 | 608 | ||
0% 8/1/25 (FGIC Insured) | 2,725 | 1,147 | ||
0% 8/1/26 (FGIC Insured) | 1,365 | 545 | ||
Roseville City School District: | ||||
0% 8/1/25 (FGIC Insured) | 1,745 | 728 | ||
0% 8/1/27 (FGIC Insured) | 1,940 | 726 | ||
Sacramento City Fing. Auth. Lease Rev. Series A, 5.4% 11/1/20 (AMBAC Insured) | 2,000 | 2,177 | ||
Sacramento City Fing. Auth. Rev. (Combined Area Projs.) Series B, 0% 11/1/15 (MBIA Insured) | 7,735 | 5,485 | ||
Sacramento County Sanitation District Fing. Auth. Rev. 4.121% 12/1/35 (FGIC Insured) (c) | 10,000 | 9,790 | ||
Sacramento Muni. Util. District Elec. Rev.: | ||||
Series 2001 P, 5.25% 8/15/16 (FSA Insured) | 1,500 | 1,580 | ||
Series L, 5.125% 7/1/22 (MBIA Insured) | 4,000 | 4,083 | ||
Series R, 5% 8/15/33 (MBIA Insured) | 6,825 | 6,926 | ||
San Bernardino County Ctfs. of Prtn.: | ||||
(Cap. Facilities Proj.) Series B, 6.875% 8/1/24 (Escrowed to Maturity) (e) | 8,500 | 10,618 | ||
(Med. Ctr. Fing. Prog.) 5.5% 8/1/22 | 10,000 | 10,551 | ||
San Diego Cmnty. College District: | ||||
Series 2002 A, 5% 5/1/22 (FSA Insured) | 1,000 | 1,028 | ||
0% 8/1/17 (FSA Insured) | 3,395 | 2,208 | ||
San Diego County Ctfs. of Prtn.: | ||||
(The Bishop's School Proj.) Series A, 6% 9/1/34, LOC Bank of New York, New York | 4,090 | 4,444 | ||
5% 11/15/16 (AMBAC Insured) | 2,000 | 2,134 | ||
5% 11/15/17 (AMBAC Insured) | 2,000 | 2,123 | ||
5% 11/15/18 (AMBAC Insured) | 2,000 | 2,110 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
California - continued | ||||
San Diego County Ctfs. of Prtn.: - continued | ||||
5.25% 10/1/11 | $ 1,705 | $ 1,791 | ||
San Diego County Reg'l. Arpt. Auth. Arpt. Rev. 5% 7/1/12 (AMBAC Insured) (d) | 2,200 | 2,297 | ||
San Diego Unified School District (Election of 1998 Proj.): | ||||
Series 2000 B, 6.05% 7/1/18 (MBIA Insured) | 2,290 | 2,655 | ||
Series D, 5.25% 7/1/17 (FGIC Insured) (Pre-Refunded to 7/1/12 @ 101) (e) | 4,325 | 4,635 | ||
San Francisco Bay Area Rapid Trans. District Sales Tax Rev. 5.25% 7/1/18 | 1,620 | 1,653 | ||
San Francisco Bay Area Rapid Transit Fing. Auth. Series 2004 A, 5% 8/1/35 | 6,815 | 6,957 | ||
San Francisco City & County Arpts. Commission Int'l. Arpt. Rev.: | ||||
(SFO Fuel Co. Proj.) Series A: | ||||
5.125% 1/1/17 (AMBAC Insured) (d) | 6,000 | 6,076 | ||
5.25% 1/1/18 (AMBAC Insured) (d) | 4,515 | 4,574 | ||
Second Series 15A, 5.5% 5/1/09 (FSA Insured) (d) | 1,355 | 1,389 | ||
Second Series 18A: | ||||
5.25% 5/1/11 (MBIA Insured) (d) | 3,280 | 3,343 | ||
5.25% 5/1/14 (MBIA Insured) (d) | 2,750 | 2,799 | ||
Series 32F, 5.25% 5/1/19 (FGIC Insured) | 2,500 | 2,730 | ||
Series 32H: | ||||
5% 5/1/11 (CIFG North America Insured) (d) | 2,325 | 2,412 | ||
5% 5/1/12 (CIFG North America Insured) (d) | 1,000 | 1,045 | ||
San Francisco City & County Pub. Util. Commission Wtr. Rev. Series A, 5% 11/1/32 (MBIA Insured) | 2,800 | 2,864 | ||
San Francisco City & County Redev. Fing. Auth. Tax Allocation Rev.: | ||||
(San Francisco Redev. Proj.) Series B, 0% 8/1/10 (MBIA Insured) | 1,475 | 1,324 | ||
Series A: | ||||
0% 8/1/09 (FGIC Insured) | 1,085 | 1,011 | ||
0% 8/1/10 (FGIC Insured) | 1,085 | 974 | ||
San Joaquin County Ctfs. of Prtn. (County Administration Bldg. Proj.): | ||||
5% 11/15/20 (MBIA Insured) | 3,720 | 3,895 | ||
5% 11/15/21 (MBIA Insured) | 3,645 | 3,799 | ||
San Joaquin Hills Trans. Corridor Agcy. Toll Road Rev.: | ||||
Series 1997 A, 0% 1/15/26 (MBIA Insured) | 11,000 | 4,426 | ||
Series A: | ||||
0% 1/15/10 (MBIA Insured) | 2,240 | 2,049 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
California - continued | ||||
San Joaquin Hills Trans. Corridor Agcy. Toll Road Rev.: - continued | ||||
Series A: | ||||
0% 1/15/12 (MBIA Insured) | $ 7,000 | $ 5,902 | ||
0% 1/15/15 (MBIA Insured) | 5,000 | 3,666 | ||
0% 1/15/20 (MBIA Insured) | 3,765 | 2,118 | ||
0% 1/15/31 (MBIA Insured) | 5,000 | 1,524 | ||
5.5% 1/15/28 | 1,060 | 1,040 | ||
0% 1/1/12 (Escrowed to Maturity) (e) | 10,000 | 8,502 | ||
San Jose Int'l. Arpt. Rev.: | ||||
Series A, 5.25% 3/1/14 (FGIC Insured) | 1,000 | 1,050 | ||
5% 3/1/24 (AMBAC Insured) (b)(d) | 9,690 | 9,785 | ||
5% 3/1/37 (AMBAC Insured) (b)(d) | 10,000 | 9,939 | ||
San Jose Unified School District Santa Clara County: | ||||
Series 2002 B, 5% 8/1/25 (FGIC Insured) | 1,750 | 1,808 | ||
Series A, 5.375% 8/1/20 (FSA Insured) | 1,895 | 2,000 | ||
San Luis Obispo County Fing. Auth. Series 2000 A, 5.375% 8/1/24 (MBIA Insured) | 1,000 | 1,038 | ||
San Marcos Pub. Facilities Auth. Pub. Facilities Rev. 0% 9/1/15 (Escrowed to Maturity) (e) | 1,990 | 1,448 | ||
San Mateo County Cmnty. College District Series A, 0% 9/1/18 (FGIC Insured) | 3,000 | 1,854 | ||
San Mateo Unified School District (Election of 2000 Proj.) Series B: | ||||
0% 9/1/23 (FGIC Insured) | 2,000 | 941 | ||
0% 9/1/25 (FGIC Insured) | 1,490 | 630 | ||
0% 9/1/26 (FGIC Insured) | 1,500 | 602 | ||
Sanger Unified School District 5.6% 8/1/23 (MBIA Insured) | 3,000 | 3,325 | ||
Santa Clarita Cmnty. College District 4.25% 8/1/23 (MBIA Insured) | 2,200 | 2,090 | ||
Santa Margarita/Dana Point Auth. Rev. Impt. (Dists. 1, 2, 2A & 8 Proj.) Series A, 7.25% 8/1/12 (MBIA Insured) | 1,865 | 2,157 | ||
Santa Rosa Wastewtr. Rev. (Cap. Appreciation) Series B: | ||||
0% 9/1/20 (AMBAC Insured) | 4,030 | 2,215 | ||
0% 9/1/22 (AMBAC Insured) | 2,900 | 1,424 | ||
Shasta Joint Powers Fing. Auth. Lease Rev. (County Administration Bldg. Proj.) Series A, 5% 4/1/29 (MBIA Insured) | 5,015 | 5,071 | ||
Shasta Union High School District: | ||||
0% 8/1/26 (FGIC Insured) | 1,000 | 392 | ||
0% 5/1/28 (MBIA Insured) | 3,340 | 1,185 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
California - continued | ||||
Sierra View Local Health Care District Rev. 5.25% 7/1/37 (b) | $ 1,500 | $ 1,489 | ||
Southern California Pub. Pwr. Auth. Rev. (Multiple Projs.): | ||||
6.75% 7/1/10 | 1,400 | 1,508 | ||
6.75% 7/1/11 | 6,500 | 7,166 | ||
Sulphur Springs Union School District Series A, 0% 9/1/12 (MBIA Insured) | 2,750 | 2,268 | ||
Sulphur Springs Union School District Ctfs. of Prtn. (2002 School Facility Bridge Fdg. Prog.) 3.1%, tender 9/1/09 (FSA Insured) (c) | 3,000 | 2,964 | ||
Tahoe-Truckee Joint Unified School District Series A, 0% 9/1/10 (FGIC Insured) | 2,730 | 2,333 | ||
Torrance Ctfs. of Prtn. (Refing. & Pub. Impt. Proj.) Series B, 5.25% 6/1/34 (AMBAC Insured) | 3,000 | 3,108 | ||
Torrance Hosp. Rev. (Torrance Memorial Med. Ctr. Proj.) Series 2001 A: | ||||
5.5% 6/1/31 | 2,350 | 2,411 | ||
6% 6/1/22 | 1,100 | 1,169 | ||
Ukiah Unified School District 0% 8/1/14 (FGIC Insured) | 3,040 | 2,303 | ||
Union Elementary School District Series A: | ||||
0% 9/1/18 (FGIC Insured) | 1,000 | 615 | ||
0% 9/1/21 (FGIC Insured) | 2,995 | 1,555 | ||
Univ. of California Revs.: | ||||
(Ltd. Proj.) Series B: | ||||
5% 5/15/20 (FSA Insured) | 2,800 | 2,909 | ||
5% 5/15/33 (FSA Insured) | 1,000 | 1,014 | ||
(UCLA Med. Ctr. Proj.): | ||||
Series B, 5.5% 5/15/18 (AMBAC Insured) | 8,035 | 8,674 | ||
4.55% 12/1/09 (Escrowed to Maturity) (e)(f) | 21,213 | 21,623 | ||
Series 2005 F, 4.75% 5/15/35 (FSA Insured) | 3,000 | 2,897 | ||
Series A, 5.125% 5/15/18 (AMBAC Insured) | 2,000 | 2,103 | ||
Series B: | ||||
5% 5/15/16 (FSA Insured) | 2,100 | 2,225 | ||
5% 5/15/17 (FSA Insured) | 4,000 | 4,218 | ||
5.25% 5/15/16 (AMBAC Insured) | 7,120 | 7,602 | ||
Series C, 4.75% 5/15/37 (MBIA Insured) | 3,980 | 3,833 | ||
Series K, 5% 5/15/22 | 6,455 | 6,713 | ||
Upland Ctfs. of Prtn. (San Antonio Cmnty. Hosp. Proj.): | ||||
5.25% 1/1/08 | 700 | 701 | ||
5.25% 1/1/13 | 8,500 | 8,506 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
California - continued | ||||
Val Verde Unified School District Ctfs. of Prtn.: | ||||
5% 1/1/35 (FGIC Insured) | $ 2,090 | $ 2,124 | ||
5% 1/1/35 (Pre-Refunded to 1/1/15 @ 100) (e) | 995 | 1,069 | ||
5.25% 1/1/17 (Pre-Refunded to 1/1/15 @ 100) (e) | 1,000 | 1,091 | ||
5.25% 1/1/18 (Pre-Refunded to 1/1/15 @ 100) (e) | 1,380 | 1,505 | ||
Victor Elementary School District Series A, 0% 6/1/14 (MBIA Insured) | 2,375 | 1,805 | ||
Vista Unified School District Series A: | ||||
5.375% 8/1/15 (FSA Insured) | 130 | 139 | ||
5.375% 8/1/16 (FSA Insured) | 100 | 107 | ||
Walnut Valley Unified School District Series D: | ||||
0% 8/1/30 (FGIC Insured) | 2,875 | 911 | ||
0% 8/1/31 (FGIC Insured) | 2,715 | 815 | ||
0% 8/1/32 (FGIC Insured) | 1,315 | 374 | ||
5.25% 8/1/16 (FGIC Insured) | 1,000 | 1,069 | ||
Washington Township Health Care District Rev. Series A: | ||||
5% 7/1/23 | 1,460 | 1,454 | ||
5% 7/1/25 | 1,665 | 1,644 | ||
5% 7/1/37 | 1,750 | 1,664 | ||
Western Placer Unified School District Ctfs. of Prtn. (School Facilities Proj.) Series B, 3.625%, tender 12/1/09 (FSA Insured) (c) | 3,300 | 3,289 | ||
Yuba City Unified School District Series A, 0% 9/1/21 (FGIC Insured) | 2,090 | 1,093 | ||
1,580,255 | ||||
Guam - 0.2% | ||||
Guam Wtrwks. Auth. Wtr. and Wastewtr. Sys. Rev.: | ||||
5% 7/1/09 | 1,100 | 1,105 | ||
5.875% 7/1/35 | 1,875 | 1,930 | ||
3,035 | ||||
Puerto Rico - 0.9% | ||||
Puerto Rico Commonwealth Gen. Oblig. Series 2006A, 3.474% 7/1/21 (FGIC Insured) (c) | 4,600 | 4,459 | ||
Puerto Rico Commonwealth Hwy. & Trans. Auth. Trans. Rev. Series N, 5.25% 7/1/39 (FGIC Insured) | 6,500 | 7,087 | ||
Puerto Rico Sales Tax Fing. Corp. Sales Tax Rev. Series A: | ||||
0% 8/1/41 (FGIC Insured) | 9,500 | 1,672 | ||
0% 8/1/54 (AMBAC Insured) | 9,500 | 840 | ||
14,058 | ||||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
Virgin Islands - 0.1% | ||||
Virgin Islands Pub. Fin. Auth. Rev. Series A: | ||||
5% 10/1/10 | $ 550 | $ 565 | ||
5.25% 10/1/15 | 1,255 | 1,325 | ||
1,890 |
TOTAL INVESTMENT PORTFOLIO - 100.8% (Cost $1,583,045) | 1,599,238 | ||
NET OTHER ASSETS - (0.8)% | (13,020) | ||
NET ASSETS - 100% | $ 1,586,218 |
Legend |
(a) Security initially issued in zero coupon form which converts to coupon form at a specified rate and date. The rate shown is the rate at period end. |
(b) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(c) The coupon rate shown on floating or adjustable rate securities represents the rate at period end. |
(d) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals. |
(e) Security collateralized by an amount sufficient to pay interest and principal. |
(f) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $21,623,000 or 1.4% of net assets. |
Additional information on each holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
Univ. of California Revs. (UCLA Med. Ctr. Proj.) 4.55% 12/1/09 | 3/6/02 | $ 21,213 |
Other Information |
The distribution of municipal securities by revenue source, as a percentage of total net assets, is as follows: |
General Obligations | 41.3% |
Transportation | 10.8% |
Escrowed/Pre-Refunded | 9.3% |
Water & Sewer | 7.5% |
Education | 7.0% |
Special Tax | 6.6% |
Electric Utilities | 5.5% |
Health Care | 5.3% |
Others* (individually less than 5%) | 6.7% |
100.0% |
*Includes net other assets |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | August 31, 2007 (Unaudited) | |
Assets | ||
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $1,583,045) | $ 1,599,238 | |
Cash | 1,188 | |
Receivable for fund shares sold | 1,453 | |
Interest receivable | 16,841 | |
Prepaid expenses | 2 | |
Other receivables | 165 | |
Total assets | 1,618,887 | |
Liabilities | ||
Payable for investments purchased | $ 4,178 | |
Delayed delivery | 24,209 | |
Payable for fund shares redeemed | 1,579 | |
Distributions payable | 1,694 | |
Accrued management fee | 482 | |
Distribution fees payable | 15 | |
Other affiliated payables | 480 | |
Other payables and accrued expenses | 32 | |
Total liabilities | 32,669 | |
Net Assets | $ 1,586,218 | |
Net Assets consist of: | ||
Paid in capital | $ 1,567,255 | |
Undistributed net investment income | 495 | |
Accumulated undistributed net realized gain (loss) on investments | 2,275 | |
Net unrealized appreciation (depreciation) on investments | 16,193 | |
Net Assets | $ 1,586,218 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | August 31, 2007 (Unaudited) | |
Calculation of Maximum Offering Price Class A: | $ 12.06 | |
Maximum offering price per share (100/96.00 of $12.06) | $ 12.56 | |
Class T: | $ 12.08 | |
Maximum offering price per share (100/96.00 of $12.08) | $ 12.58 | |
Class B: | $ 12.05 | |
Class C: | $ 12.05 | |
California Municipal Income: | $ 12.05 | |
Institutional Class: | $ 12.07 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Amounts in thousands | Six months ended August 31, 2007 (Unaudited) | |
Investment Income | ||
Interest | $ 36,706 | |
Expenses | ||
Management fee | $ 2,996 | |
Transfer agent fees | 563 | |
Distribution fees | 92 | |
Accounting fees and expenses | 153 | |
Custodian fees and expenses | 12 | |
Independent trustees' compensation | 3 | |
Registration fees | 62 | |
Audit | 28 | |
Legal | 6 | |
Miscellaneous | 9 | |
Total expenses before reductions | 3,924 | |
Expense reductions | (298) | 3,626 |
Net investment income | 33,080 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 5,053 | |
Futures contracts | 76 | |
Total net realized gain (loss) | 5,129 | |
Change in net unrealized appreciation (depreciation) on: Investment securities | (48,220) | |
Swap agreements | 360 | |
Total change in net unrealized appreciation (depreciation) | (47,860) | |
Net gain (loss) | (42,731) | |
Net increase (decrease) in net assets resulting from operations | $ (9,651) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
Amounts in thousands | Six months ended | Year ended |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income | $ 33,080 | $ 64,183 |
Net realized gain (loss) | 5,129 | 13,028 |
Change in net unrealized appreciation (depreciation) | (47,860) | (7,105) |
Net increase (decrease) in net assets resulting | (9,651) | 70,106 |
Distributions to shareholders from net investment income | (33,064) | (64,808) |
Distributions to shareholders from net realized gain | (4,440) | (12,368) |
Total distributions | (37,504) | (77,176) |
Share transactions - net increase (decrease) | (18,299) | 24,916 |
Redemption fees | 6 | 8 |
Total increase (decrease) in net assets | (65,448) | 17,854 |
Net Assets | ||
Beginning of period | 1,651,666 | 1,633,812 |
End of period (including undistributed net investment income of $495 and $521, respectively) | $ 1,586,218 | $ 1,651,666 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
Six months ended | Years ended February 28, | |||||
(Unaudited) | 2007 | 2006 | 2005 | 2004 H | 2003 F | |
Selected Per-Share Data | ||||||
Net asset value, beginning of period | $ 12.41 | $ 12.46 | $ 12.56 | $ 12.84 | $ 12.76 | $ 12.60 |
Income from Investment Operations | ||||||
Net investment income E | .232 | .478 | .490 | .505 | .521 | .303 |
Net realized and unrealized gain (loss) | (.317) | .050 | (.025) | (.149) | .248 | .212 |
Total from investment operations | (.085) | .528 | .465 | .356 | .769 | .515 |
Distributions from net investment income | (.232) | (.483) | (.490) | (.501) | (.517) | (.297) |
Distributions from net realized gain | (.033) | (.095) | (.075) | (.135) | (.172) | (.058) |
Total distributions | (.265) | (.578) | (.565) | (.636) | (.689) | (.355) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, | $ 12.06 | $ 12.41 | $ 12.46 | $ 12.56 | $ 12.84 | $ 12.76 |
Total Return B, C, D | (.69)% | 4.36% | 3.78% | 2.92% | 6.25% | 4.13% |
Ratios to Average Net Assets G | ||||||
Expenses before reductions | .72% A | .64% | .65% | .66% | .65% | .66% A |
Expenses net of fee waivers, if any | .72% A | .64% | .65% | .66% | .65% | .66% A |
Expenses net of all reductions | .68% A | .62% | .62% | .65% | .65% | .65% A |
Net investment income | 3.78% A | 3.88% | 3.93% | 4.04% | 4.12% | 4.18% A |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $ 14 | $ 13 | $ 11 | $ 7 | $ 6 | $ 3 |
Portfolio turnover rate | 38% A | 23% | 19% | 15% | 18% | 18% |
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F For the period August 1, 2002 (commencement of sale of shares) to February 28, 2003.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H For the year ended February 29.
I Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
Six months ended | Years ended February 28, | |||||
(Unaudited) | 2007 | 2006 | 2005 | 2004 H | 2003 F | |
Selected Per-Share Data | ||||||
Net asset value, beginning of period | $ 12.43 | $ 12.48 | $ 12.58 | $ 12.86 | $ 12.79 | $ 12.60 |
Income from Investment Operations | ||||||
Net investment income E | .231 | .466 | .477 | .492 | .508 | .296 |
Net realized and unrealized gain (loss) | (.318) | .048 | (.027) | (.150) | .237 | .241 |
Total from investment operations | (.087) | .514 | .450 | .342 | .745 | .537 |
Distributions from net investment income | (.230) | (.469) | (.475) | (.487) | (.503) | (.289) |
Distributions from net realized gain | (.033) | (.095) | (.075) | (.135) | (.172) | (.058) |
Total distributions | (.263) | (.564) | (.550) | (.622) | (.675) | (.347) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, | $ 12.08 | $ 12.43 | $ 12.48 | $ 12.58 | $ 12.86 | $ 12.79 |
Total Return B, C, D | (.70)% | 4.24% | 3.66% | 2.80% | 6.04% | 4.31% |
Ratios to Average Net Assets G | ||||||
Expenses before reductions | .74% A | .75% | .77% | .77% | .76% | .77% A |
Expenses net of fee waivers, if any | .74% A | .75% | .77% | .77% | .76% | .77% A |
Expenses net of all reductions | .70% A | .72% | .73% | .76% | .76% | .76% A |
Net investment income | 3.76% A | 3.77% | 3.81% | 3.93% | 4.01% | 4.07% A |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $ 5 | $ 5 | $ 4 | $ 3 | $ 4 | $ 1 |
Portfolio turnover rate | 38% A | 23% | 19% | 15% | 18% | 18% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F For the period August 1, 2002 (commencement of sale of shares) to February 28, 2003.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H For the year ended February 29.
I Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
Six months ended | Years ended February 28, | |||||
(Unaudited) | 2007 | 2006 | 2005 | 2004 H | 2003 F | |
Selected Per-Share Data | ||||||
Net asset value, beginning of period | $ 12.40 | $ 12.45 | $ 12.55 | $ 12.84 | $ 12.76 | $ 12.60 |
Income from Investment Operations | ||||||
Net investment income E | .190 | .383 | .394 | .409 | .426 | .247 |
Net realized and unrealized gain (loss) | (.317) | .049 | (.026) | (.159) | .248 | .210 |
Total from investment operations | (.127) | .432 | .368 | .250 | .674 | .457 |
Distributions from net investment income | (.190) | (.387) | (.393) | (.405) | (.422) | (.239) |
Distributions from net realized gain | (.033) | (.095) | (.075) | (.135) | (.172) | (.058) |
Total distributions | (.223) | (.482) | (.468) | (.540) | (.594) | (.297) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, | $ 12.05 | $ 12.40 | $ 12.45 | $ 12.55 | $ 12.84 | $ 12.76 |
Total Return B, C, D | (1.03)% | 3.57% | 2.99% | 2.06% | 5.46% | 3.66% |
Ratios to Average Net Assets G | ||||||
Expenses before reductions | 1.40% A | 1.41% | 1.42% | 1.42% | 1.41% | 1.42% A |
Expenses net of fee waivers, if any | 1.40% A | 1.41% | 1.42% | 1.42% | 1.41% | 1.42% A |
Expenses net of all reductions | 1.37% A | 1.39% | 1.39% | 1.41% | 1.40% | 1.42% A |
Net investment income | 3.10% A | 3.11% | 3.15% | 3.28% | 3.37% | 3.42% A |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $ 5 | $ 5 | $ 5 | $ 5 | $ 5 | $ 4 |
Portfolio turnover rate | 38% A | 23% | 19% | 15% | 18% | 18% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F For the period August 1, 2002 (commencement of sale of shares) to February 28, 2003.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H For the year ended February 29.
I Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
Six months ended | Years ended February 28, | |||||
(Unaudited) | 2007 | 2006 | 2005 | 2004 H | 2003 F | |
Selected Per-Share Data | ||||||
Net asset value, beginning of period | $ 12.40 | $ 12.44 | $ 12.55 | $ 12.83 | $ 12.75 | $ 12.60 |
Income from Investment Operations | ||||||
Net investment income E | .184 | .371 | .382 | .397 | .411 | .239 |
Net realized and unrealized gain (loss) | (.317) | .061 | (.035) | (.149) | .248 | .200 |
Total from investment operations | (.133) | .432 | .347 | .248 | .659 | .439 |
Distributions from net investment income | (.184) | (.377) | (.382) | (.393) | (.407) | (.231) |
Distributions from net realized gain | (.033) | (.095) | (.075) | (.135) | (.172) | (.058) |
Total distributions | (.217) | (.472) | (.457) | (.528) | (.579) | (.289) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, | $ 12.05 | $ 12.40 | $ 12.44 | $ 12.55 | $ 12.83 | $ 12.75 |
Total Return B, C, D | (1.08)% | 3.56% | 2.81% | 2.04% | 5.34% | 3.52% |
Ratios to Average Net Assets G | ||||||
Expenses before reductions | 1.50% A | 1.50% | 1.52% | 1.52% | 1.52% | 1.54% A |
Expenses net of fee waivers, if any | 1.50% A | 1.50% | 1.52% | 1.52% | 1.52% | 1.54% A |
Expenses net of all reductions | 1.46% A | 1.48% | 1.49% | 1.51% | 1.51% | 1.53% A |
Net investment income | 3.00% A | 3.02% | 3.06% | 3.18% | 3.25% | 3.30% A |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $ 9 | $ 10 | $ 10 | $ 11 | $ 12 | $ 7 |
Portfolio turnover rate | 38% A | 23% | 19% | 15% | 18% | 18% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F For the period August 1, 2002 (commencement of sale of shares) to February 28, 2003.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H For the year ended February 29.
I Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - California Municipal Income
Six months ended | Years ended February 28, | |||||
(Unaudited) | 2007 | 2006 | 2005 | 2004 F | 2003 | |
Selected Per-Share Data | ||||||
Net asset value, beginning of period | $ 12.40 | $ 12.45 | $ 12.55 | $ 12.83 | $ 12.75 | $ 12.55 |
Income from Investment Operations | ||||||
Net investment income D | .247 | .499 | .512 | .527 | .544 | .546 |
Net realized and unrealized gain (loss) | (.317) | .050 | (.025) | (.149) | .247 | .265 |
Total from investment operations | (.070) | .549 | .487 | .378 | .791 | .811 |
Distributions from net investment income | (.247) | (.504) | (.512) | (.523) | (.539) | (.541) |
Distributions from net realized gain | (.033) | (.095) | (.075) | (.135) | (.172) | (.070) |
Total distributions | (.280) | (.599) | (.587) | (.658) | (.711) | (.611) |
Redemption fees added to paid in capital D, G | - | - | - | - | - | - |
Net asset value, | $ 12.05 | $ 12.40 | $ 12.45 | $ 12.55 | $ 12.83 | $ 12.75 |
Total Return B, C | (.57)% | 4.55% | 3.97% | 3.11% | 6.44% | 6.64% |
Ratios to Average Net Assets E | ||||||
Expenses before reductions | .47% A | .47% | .48% | .48% | .48% | .49% |
Expenses net of fee waivers, if any | .47% A | .47% | .48% | .48% | .48% | .48% |
Expenses net of all reductions | .43% A | .44% | .45% | .47% | .48% | .47% |
Net investment income | 4.03% A | 4.05% | 4.10% | 4.22% | 4.29% | 4.34% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $ 1,545 | $ 1,611 | $ 1,601 | $ 1,506 | $ 1,550 | $ 1,683 |
Portfolio turnover rate | 38% A | 23% | 19% | 15% | 18% | 18% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F For the year ended February 29.
G Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
Six months ended | Years ended February 28, | |||||
(Unaudited) | 2007 | 2006 | 2005 | 2004 G | 2003 E | |
Selected Per-Share Data | ||||||
Net asset value, beginning of period | $ 12.42 | $ 12.47 | $ 12.57 | $ 12.85 | $ 12.76 | $ 12.60 |
Income from Investment Operations | ||||||
Net investment income D | .245 | .493 | .509 | .529 | .546 | .316 |
Net realized and unrealized gain (loss) | (.318) | .049 | (.025) | (.151) | .254 | .211 |
Total from investment operations | (.073) | .542 | .484 | .378 | .800 | .527 |
Distributions from net investment income | (.244) | (.497) | (.509) | (.523) | (.538) | (.309) |
Distributions from net realized gain | (.033) | (.095) | (.075) | (.135) | (.172) | (.058) |
Total distributions | (.277) | (.592) | (.584) | (.658) | (.710) | (.367) |
Redemption fees added to paid in capital D, H | - | - | - | - | - | - |
Net asset value, | $ 12.07 | $ 12.42 | $ 12.47 | $ 12.57 | $ 12.85 | $ 12.76 |
Total Return B, C | (.59)% | 4.48% | 3.94% | 3.10% | 6.51% | 4.23% |
Ratios to Average Net Assets F | ||||||
Expenses before reductions | .51% A | .53% | .50% | .47% | .49% | .50% A |
Expenses net of fee waivers, if any | .51% A | .53% | .50% | .47% | .49% | .50% A |
Expenses net of all reductions | .47% A | .50% | .46% | .47% | .49% | .49% A |
Net investment income | 3.99% A | 3.99% | 4.08% | 4.23% | 4.28% | 4.34% A |
Supplemental Data | ||||||
Net assets, | $ 8,362 | $ 7,882 | $ 2,143 | $ 1,057 | $ 264 | $ 1,499 |
Portfolio turnover rate | 38% A | 23% | 19% | 15% | 18% | 18% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E For the period August 1, 2002 (commencement of sale of shares) to February 28, 2003.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G For the year ended February 29.
H Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended August 31, 2007 (Unaudited)
(Amounts in thousands except ratios)
1. Organization.
Fidelity California Municipal Income Fund (the Fund) is a non-diversified fund of Fidelity California Municipal Trust (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class B, Class C, California Municipal Income, and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class. The Fund may be affected by economic and political developments in the state of California.
2. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued and net asset value per share is calculated (NAV calculation) as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments. Debt securities, including restricted securities, for which quotes are readily available, are valued by independent pricing services or by dealers who make markets in such securities. Pricing services consider yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices.
When current market prices or quotations are not readily available or do not accurately reflect fair value, valuations may be determined in accordance with procedures adopted by the Board of Trustees. The frequency of when fair value pricing is used is unpredictable. The value of securities used for NAV calculation under fair value pricing may differ from published prices for the same securities. Investments in open-end mutual funds are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
2. Significant Accounting Policies - continued
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV for processing shareholder transactions includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Interest income is accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. Each Fund adopted the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48), on June 29, 2007. FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements. Each of the tax years in the three year period ended June 29, 2007, remains subject to examination by the Internal Revenue Service.
Dividends are declared daily and paid monthly from net investment income. Distributions from realized gains, if any, are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to futures transactions, swap agreements, market discount, deferred trustees compensation and losses deferred due to wash sales futures transactions.
Semiannual Report
2. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The Fund purchases municipal securities whose interest, in the opinion of the issuer, is free from federal income tax. There is no assurance that the Internal Revenue Service (IRS) will agree with this opinion. In the event the IRS determines that the issuer does not comply with relevant tax requirements, interest payments from a security could become federally taxable, possibly retroactively to the date the security was issued.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 36,250 | |
Unrealized depreciation | (18,752) | |
Net unrealized appreciation (depreciation) | $ 17,498 | |
Cost for federal income tax purposes | $ 1,581,740 |
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 30 days are subject to a redemption fee equal to 50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by Fidelity Management & Research Company (FMR), are retained by the Fund and accounted for as an addition to paid in capital.
New Accounting Pronouncement. In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact the adoption of SFAS 157 will have on the Fund's financial statement disclosures.
3. Operating Policies.
Delayed Delivery Transactions and When-Issued Securities. The Fund may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. During the time a delayed delivery sell is outstanding, the contract is marked-to-market daily and equivalent deliverable securities are held for the transaction. The value of the securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. The Fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Operating Policies - continued
Delayed Delivery Transactions and When-Issued Securities - continued
amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Futures Contracts. The Fund may use futures contracts to manage its exposure to the bond market and to fluctuations in interest rates. Buying futures tends to increase a fund's exposure to the underlying instrument, while selling futures tends to decrease a fund's exposure to the underlying instrument or hedge other fund investments. Upon entering into a futures contract, a fund is required to deposit with a clearing broker, no later than the following business day, an amount ("initial margin") equal to a certain percentage of the face value of the contract. The initial margin may be in the form of cash or securities and is transferred to a segregated account on settlement date. Subsequent payments ("variation margin") are made or received by a fund depending on the daily fluctuations in the value of the futures contract and are accounted for as unrealized gains or losses. Realized gains (losses) are recorded upon the expiration or closing of the futures contract. Securities deposited to meet margin requirements are identified in the Schedule of Investments. Losses may arise from changes in the value of the underlying instruments or if the counterparties do not perform under the contract's terms. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $322,823 and $314,824, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .25% of the Fund's average net assets and a group fee rate that averaged ..12% during the period. The group fee rate is based upon the average net assets of all the mutual funds
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .36% of the Fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:
Distribution | Service | Paid to | Retained | |
Class A | -% | .25% | $ 16 | $ 2 |
Class T | -% | .25% | 6 | - |
Class B | .65% | .25% | 23 | 17 |
Class C | .75% | .25% | 47 | 9 |
$ 92 | $ 28 |
On January 18, 2007, the Board of Trustees approved an increase on Class A's service fee from .15% to .25%, effective April 1, 2007.
Sales Load. FDC receives a front-end sales charge of up to 4.00% for selling Class A shares and Class T shares (4.75% for Class A and 3.50% for Class T prior to April 1, 2007) some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, ..75% to .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
Retained | |
Class A | $ 10 |
Class T | 1 |
Class B* | 5 |
Class C* | 1 |
$ 17 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent and Accounting Fees. Citibank, N.A. (Citibank) is the custodian, transfer agent, and shareholder servicing agent for the Fund's Class A, Class T, Class B, Class C, California Municipal Income and Institutional Class shares. Citibank has entered into a sub-arrangement with Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, with respect to all classes of the Fund, except for California Municipal Income, to perform the transfer, dividend disbursing, and shareholder servicing agent functions. Citibank has also entered into a sub-arrangement with Fidelity Service Company, Inc. (FSC), an affiliate of FMR, with respect to California Municipal Income, to perform the transfer, dividend disbursing, and shareholder servicing agent functions. FIIOC and FSC receive account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. All fees are paid to FIIOC by Citibank, which is reimbursed by each class for such payments. FIIOC and FSC pay for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, each class paid the following transfer agent fees:
Amount | % of | |
Class A | $ 6 | .09 |
Class T | 2 | .09 |
Class B | 3 | .11 |
Class C | 5 | .11 |
California Municipal Income | 543 | .07 |
Institutional Class | 4 | .11 |
$ 563 |
* Annualized
Citibank also has a sub-arrangement with FSC to maintain the Fund's accounting records. The fee is based on the level of average net assets for the month.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro rata portion of the line of credit, which amounted to $2 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Semiannual Report
7. Expense Reductions.
Through arrangements with the Fund's custodian and each class' transfer agent, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody and accounting expenses by $13 and $142, respectively. During the period, credits reduced each class' transfer agent expense as noted in the table below.
Transfer Agent | ||
Class A | $ 1 | |
Class C | 1 | |
California Municipal Income | 137 | |
Institutional Class | 1 | |
$ 140 |
8. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
In September 2006, FIIOC, the Fund's transfer agent, notified the Fund that the Fund's books and records did not reflect a conversion of certain Class B to Class A shares upon their conversion date. In March 2007, FIIOC converted the relevant Class B shares to Class A shares and recorded the conversion in the books and records of the Fund which did not result in a material impact to the Fund's reported net assets or results of operations in the accompanying financial statements. FIIOC has remediated affected shareholders and reimbursed the Fund for all related audit and legal expenses.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income | ||
Class A | $ 259 | $ 473 |
Class T | 89 | 176 |
Class B | 80 | 165 |
Class C | 143 | 303 |
California Municipal Income | 32,333 | 63,502 |
Institutional Class | 160 | 189 |
Total | $ 33,064 | $ 64,808 |
From net realized gain | ||
Class A | $ 35 | $ 93 |
Class T | 13 | 35 |
Class B | 14 | 41 |
Class C | 26 | 75 |
California Municipal Income | 4,330 | 12,083 |
Institutional Class | 22 | 41 |
Total | $ 4,440 | $ 12,368 |
10. Share Transactions.
Transactions for each class of shares were as follows:
Shares | Dollars | |||
Six months ended | Year ended | Six months ended | Year ended | |
Class A | ||||
Shares sold | 335 | 487 | $ 4,104 | $ 6,004 |
Reinvestment of distributions | 14 | 28 | 174 | 348 |
Shares redeemed | (212) | (354) | (2,589) | (4,369) |
Net increase (decrease) | 137 | 161 | $ 1,689 | $ 1,983 |
Class T | ||||
Shares sold | 12 | 139 | $ 153 | $ 1,696 |
Reinvestment of distributions | 7 | 14 | 81 | 178 |
Shares redeemed | (44) | (79) | (534) | (971) |
Net increase (decrease) | (25) | 74 | $ (300) | $ 903 |
Semiannual Report
10. Share Transactions - continued
Shares | Dollars | |||
Six months ended | Year ended | Six months ended | Year ended | |
Class B | ||||
Shares sold | 23 | 35 | $ 277 | $ 435 |
Reinvestment of distributions | 3 | 6 | 35 | 80 |
Shares redeemed | (32) | (52) | (388) | (644) |
Net increase (decrease) | (6) | (11) | $ (76) | $ (129) |
Class C | ||||
Shares sold | 91 | 252 | $ 1,117 | $ 3,089 |
Reinvestment of distributions | 8 | 20 | 95 | 246 |
Shares redeemed | (146) | (277) | (1,776) | (3,408) |
Net increase (decrease) | (47) | (5) | $ (564) | $ (73) |
California Municipal Income | ||||
Shares sold | 14,692 | 22,440 | $ 179,061 | $ 276,678 |
Reinvestment of distributions | 2,048 | 4,248 | 24,964 | 52,369 |
Shares redeemed | (18,441) | (25,430) | (223,770) | (312,547) |
Net increase (decrease) | (1,701) | 1,258 | $ (19,745) | $ 16,500 |
Institutional Class | ||||
Shares sold | 147 | 671 | $ 1,773 | $ 8,296 |
Reinvestment of distributions | 5 | 9 | 67 | 112 |
Shares redeemed | (94) | (217) | (1,142) | (2,676) |
Net increase (decrease) | 58 | 463 | $ 698 | $ 5,732 |
Semiannual Report
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity California Municipal Income Fund
Each year, typically in June, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract and sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information throughout the year.
The Board meets regularly each month except August and takes into account throughout the year matters bearing on Advisory Contracts. The Board, acting directly and through its separate committees, considers at each of its meetings factors that are relevant to the annual renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. At the time of the renewal, the Board had 12 standing committees, each composed of Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. Each committee has adopted a written charter outlining the structure and purposes of the committee. One such committee, the Fixed-Income Contract Committee, meets periodically as needed throughout the year to consider matters specifically related to the annual renewal of Advisory Contracts. The committee requests and receives information on, and makes recommendations to the Independent Trustees concerning, the approval and annual review of the Advisory Contracts.
At its June 2007 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew the Advisory Contracts for the fund. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the management fee and total expenses of the fund; (iii) the total costs of the services to be provided by and the profits to be realized by the investment adviser and its affiliates from the relationship with the fund; (iv) the extent to which economies of scale would be realized as the fund grows; and (v) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders. The Board also approved amendments to the fund's agreements with foreign sub-advisers to clarify that each sub-adviser provides services as an independent contractor.
In determining whether to renew the Advisory Contracts for the fund, the Board ultimately reached a determination, with the assistance of fund counsel and Independent Trustees' counsel, that the renewal of the Advisory Contracts and the compensation to be received by Fidelity under the management contract is consistent with Fidelity's fiduciary duty under applicable law. In addition to evaluating the specific factors noted above, the Board, in reaching its determination, is aware that shareholders in the fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by competitors to Fidelity, and that the fund's shareholders, with the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, managed by Fidelity.
Semiannual Report
Nature, Extent, and Quality of Services Provided. The Board considered staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the background of the fund's portfolio manager and the fund's investment objective and discipline. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives.
Resources Dedicated to Investment Management and Support Services. The Board reviewed the size, education, and experience of the Investment Advisers' investment staff, their use of technology, and the Investment Advisers' approach to recruiting, training, and retaining portfolio managers and other research, advisory, and management personnel. The Board considered Fidelity's extensive global research capabilities that enable the Investment Advisers to aggregate data from various sources in an effort to produce positive investment results. The Board noted that Fidelity's analysts have access to a variety of technological tools that enable them to perform both fundamental and quantitative analysis and to specialize in various disciplines. The Board also considered that Fidelity's portfolio managers and analysts have access to daily portfolio attribution that allows for monitoring of a fund's portfolio, as well as an electronic communication system that provides immediate real-time access to research concerning issuers and credit enhancers. In addition, the Board considered the trading resources that are an integrated part of the fixed-income portfolio management investment process.
Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, distribution, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency and pricing and bookkeeping services for the fund; (ii) the nature and extent of the Investment Advisers' supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures.
The Board noted that the growth of fund assets across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through phone representatives and over the Internet, and investor education materials and asset allocation tools.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing for a large variety of mutual fund investor services. For example, fund shareholders are offered the privilege of exchanging shares of the fund for shares of other Fidelity funds, as set forth in the fund's prospectus, without paying a sales charge. The Board noted that, since the last Advisory Contract renewals in June 2006, Fidelity has taken a number of actions that benefited particular funds, including (i) dedicating additional resources to investment research and to restructure the investment research teams; (ii) contractually agreeing to reduce the management fee on Fidelity Advisor Floating Rate High Income Fund; (iii) contractually agreeing to reduce the management fees on Fidelity's California, Massachusetts, New Jersey, and New York AMT Tax-Free Money Market Funds, launching new Institutional Classes and Service Classes of these funds, and contractually agreeing to impose expense limitations on these funds; (iv) eliminating the exchange fee on the Fidelity Select Portfolios and reducing the pricing and bookkeeping fee rates for these funds; (v) reducing the maximum transfer agency fee rates on high income funds and certain equity funds; (vi) proposing amended management contracts that, if approved by shareholders, will add a performance adjustment component to the management fees paid by 18 Fidelity Advisor equity funds; (vii) contractually agreeing to reduce fees for Ultra-Short Central Fund and the money market Central Funds; (viii) waiving the Fidelity Advisor funds' contingent deferred sales charge on certain redemptions made through systematic withdrawal programs; and (ix) amending the management contracts for equity and fixed-income funds whose management contracts incorporate a "group fee" structure by adding four new fee "breakpoints" to the group fee rate schedules.
Investment Performance. The Board considered whether the fund has operated within its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed the fund's absolute investment performance for each class, as well as the fund's relative investment performance for each class measured against (i) a broad-based securities market index, and (ii) a peer group of mutual funds deemed appropriate by the Board over multiple periods. The following charts considered by the Board show, over the one-, three-, and five-year periods ended December 31, 2006, as available, the cumulative total returns of Fidelity California Municipal Income (retail class) and Class C, the cumulative total returns of a broad-based securities market index ("benchmark"), and a range of cumulative total returns of a peer group of mutual funds identified by Lipper Inc. as having an investment objective similar to that of the fund. The returns of Fidelity California Municipal Income (retail class) and Class C show the performance of the highest and lowest performing classes, respectively (based on three-year performance). The box within each chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten numbers noted below each chart correspond to the percentile box and represent the percentage of funds in the peer group whose performance was equal to or lower than that of the class indicated.
Semiannual Report
Fidelity California Municipal Income Fund
The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of Fidelity California Municipal Income (retail class) was in the second quartile for all the periods shown. The Board also stated that the relative investment performance of the fund was lower than its benchmark for all the periods shown. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board discussed with FMR actions to be taken by FMR to improve the fund's below-benchmark performance.
Based on its review, and giving particular weight to the nature and quality of the resources dedicated by the Investment Advisers to maintain and improve relative performance, the Board concluded that the nature, extent, and quality of the services provided to the fund will benefit the fund's shareholders, particularly in light of the Board's view that the fund's shareholders benefit from investing in a fund that is part of a large family of funds offering a variety of investment disciplines and services.
Competitiveness of Management Fee and Total Fund Expenses. The Board considered the fund's management fee and total expenses compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management fee and total expense comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
The Board considered two proprietary management fee comparisons for the 12-month periods shown in the chart below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group" and, for the reasons explained above, is broader than the Lipper peer group used by the Board for performance comparisons. The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors, in terms of gross management fees before expense reimbursements or caps. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than the fund's. For example, a TMG % of 8% means that 92% of the funds in the Total Mapped Group had higher management fees than the fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which the fund's management fee ranked, is also included in the chart and considered by the Board.
Fidelity California Municipal Income Fund
The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2006. Based on its review, the Board concluded that the fund's management fee was fair and reasonable in light of the services that the fund receives and the other factors considered.
Semiannual Report
In its review of each class's total expenses, the Board considered the fund's management fee as well as other fund or class expenses, as applicable, such as transfer agent fees, pricing and bookkeeping fees, fund-paid 12b-1 fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses. As part of its review, the Board also considered current and historical total expenses of each class of the fund compared to competitive fund median expenses. Each class of the fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.
The Board noted that each class's total expenses ranked below its competitive median for 2006.
In its review of total expenses, the Board also considered Fidelity fee structures and other information on clients that FMR and its affiliates service in other competitive markets, such as other mutual funds advised or subadvised by FMR or its affiliates, pension plan clients, and other institutional clients.
Based on its review, the Board concluded that the total expenses of each class of the fund were reasonable in light of the services that the fund and its shareholders receive and the other factors considered.
Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing the fund and its shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.
On an annual basis, FMR presents to the Board Fidelity's profitability for the fund. Fidelity calculates the profitability for each fund, as well as aggregate profitability for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the audited books and records of Fidelity. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.
PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of the results of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures surrounding the mathematical accuracy of fund profitability and its conformity to allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board believes that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
The Board has also reviewed Fidelity's non-fund businesses and any fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the fund's business.
The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund and determined that the amount of profit is a fair entrepreneurial profit for the management of the fund.
Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which the fund will benefit from economies of scale through increased services to the fund, through waivers or reimbursements, or through fee or expense reductions, including reductions that occur through operation of the transfer agent agreement. The transfer agent fee varies in part based on the number of accounts in the fund. If the number of accounts decreases or the average account size increases, the overall transfer agent fee rate decreases.
The Board recognized that the fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total fund assets under FMR's management increase, and for higher group fee rates as total fund assets under FMR's management decrease. FMR determines the group fee rates based on a tiered asset "breakpoint" schedule. In connection with the renewal of the fund's management contract, the Board approved amendments to the fund's management contract that added four new fee breakpoints to the group fee rate schedule for assets under FMR's management above $1,386 billion. The Board considered that the group fee rate declines under both the present and amended schedules, but that under the amended schedule, the group fee rate declines faster as assets under FMR's management exceed $1,386 billion. The Board considered that the group fee is designed to deliver the benefits of economies of scale to fund shareholders when total fund assets increase, even if assets of any particular fund are unchanged or have declined, because some portion of Fidelity's costs are attributable to services provided to all Fidelity funds, and all funds benefit if those costs can be allocated among more assets. The Board concluded that, given the group fee structure, fund shareholders will achieve a certain level of economies of scale as assets under FMR's management increase at the fund complex level, regardless of whether Fidelity achieves any such economies of scale.
The Board further concluded that any potential economies of scale are being shared between fund shareholders and Fidelity in an appropriate manner.
Semiannual Report
Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on several topics, including (i) Fidelity's fund profitability methodology, profitability by investment discipline, and profitability trends within certain funds; (ii) Fidelity's compensation structure relative to competitors and its effect on profitability; (iii) funds and accounts managed by Fidelity other than the Fidelity funds, including fee arrangements; (iv) the total expenses of certain funds and classes relative to competitors; (v) fund performance trends; (vi) fall-out benefits received by certain Fidelity affiliates; and (vii) Fidelity's fee structures.
Based on its evaluation of all of the conclusions noted above, and after considering all material factors, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that the fund's Advisory Contracts should be renewed.
Semiannual Report
Semiannual Report
Semiannual Report
Semiannual Report
Semiannual Report
Semiannual Report
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
Fidelity Investments
Money Management, Inc.
Fidelity Research & Analysis Company
Fidelity International Investment Advisors
Fidelity International Investment Advisors
(U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Citibank, N.A.
New York, NY
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
ASCM-USAN-1007
1.790936.104
(Fidelity Investment logo)(registered trademark)
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor
California Municipal Income
Fund - Institutional Class
Semiannual Report
August 31, 2007
Institutional Class is a class of Fidelity® California Municipal Income Fund
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | Ned Johnson's message to shareholders. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past 12 months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, | |
Notes | Notes to the financial statements. | |
Board Approval of Investment Advisory Contracts and Management Fees |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent quarterly holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Many stock and bond markets around the world have been unsettled of late; however, volatility can often lead to opportunity for patient investors. Financial markets are always unpredictable, but there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (March 1, 2007 to August 31, 2007).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. 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 the 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 transaction costs. Therefore, the second line of 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.
Beginning | Ending | Expenses Paid | |
Class A | |||
Actual | $ 1,000.00 | $ 993.10 | $ 3.61 |
Hypothetical A | $ 1,000.00 | $ 1,021.52 | $ 3.66 |
Class T | |||
Actual | $ 1,000.00 | $ 993.00 | $ 3.71 |
Hypothetical A | $ 1,000.00 | $ 1,021.42 | $ 3.76 |
Class B | |||
Actual | $ 1,000.00 | $ 989.70 | $ 7.00 |
Hypothetical A | $ 1,000.00 | $ 1,018.10 | $ 7.10 |
Beginning | Ending | Expenses Paid | |
Class C | |||
Actual | $ 1,000.00 | $ 989.20 | $ 7.50 |
Hypothetical A | $ 1,000.00 | $ 1,017.60 | $ 7.61 |
California Municipal Income | |||
Actual | $ 1,000.00 | $ 994.30 | $ 2.36 |
Hypothetical A | $ 1,000.00 | $ 1,022.77 | $ 2.39 |
Institutional Class | |||
Actual | $ 1,000.00 | $ 994.10 | $ 2.56 |
Hypothetical A | $ 1,000.00 | $ 1,022.57 | $ 2.59 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).
Annualized | |
Class A | .72% |
Class T | .74% |
Class B | 1.40% |
Class C | 1.50% |
California Municipal Income | .47% |
Institutional Class | .51% |
Semiannual Report
Investment Changes
Top Five Sectors as of August 31, 2007 | ||
% of fund's | % of fund's net assets | |
General Obligations | 41.3 | 34.9 |
Transportation | 10.8 | 10.2 |
Escrowed/Pre-Refunded | 9.3 | 8.7 |
Water & Sewer | 7.5 | 6.7 |
Education | 7.0 | 7.5 |
Weighted Average Maturity as of August 31, 2007 | ||
6 months ago | ||
Years | 7.7 | 6.5 |
The weighted average maturity is based on the dollar-weighted average length of time until principal payments are expected or until securities reach maturity. Effective May 2007, the calculation was modified taking into account any maturity shortening feature such as a call, refunding or redemption provision. The prior period figure reflects this change. |
Duration as of August 31, 2007 | ||
6 months ago | ||
Years | 6.7 | 6.2 |
Duration shows how much a bond fund's price fluctuates with changes in comparable interest rates. If rates rise 1%, for example, a fund with a five-year duration is likely to lose about 5% of its value. Other factors also can influence a bond fund's performance and share price. Accordingly, a bond fund's actual performance may differ from this example. |
Quality Diversification (% of fund's net assets) | |||||||
As of August 31, 2007 | As of February 28, 2007 | ||||||
![]() | AAA 58.0% | ![]() | AAA 57.9% | ||||
![]() | AA,A 37.8% | ![]() | AA,A 34.1% | ||||
![]() | BBB 2.5% | ![]() | BBB 4.6% | ||||
![]() | BB and Below 0.8% | ![]() | BB and Below 0.3% | ||||
![]() | Not Rated 1.7% | ![]() | Not Rated 2.0% | ||||
![]() | Short-Term | ![]() | Short-Term |
We have used ratings from Moody's® Investors Services, Inc. Where Moody's ratings are not available, we have used S&P® ratings. |
*Short-Term Investments and Net Other Assets are not included in the pie chart.
Semiannual Report
Investments August 31, 2007 (Unaudited)
Showing Percentage of Net Assets
Municipal Bonds - 100.8% | ||||
Principal Amount (000s) | Value (000s) | |||
California - 99.6% | ||||
ABAG Fin. Auth. for Nonprofit Corp. Rev. (Hamlin School Proj.): | ||||
4.625% 8/1/16 | $ 380 | $ 361 | ||
4.625% 8/1/17 | 405 | 381 | ||
5% 8/1/18 | 530 | 511 | ||
5% 8/1/19 | 555 | 531 | ||
5% 8/1/20 | 585 | 556 | ||
5% 8/1/23 | 1,940 | 1,811 | ||
ABC Unified School District: | ||||
Series C, 0% 8/1/31 (FGIC Insured) | 2,720 | 816 | ||
0% 8/1/32 (FGIC Insured) | 3,760 | 1,070 | ||
Alameda Corridor Trans. Auth. Rev. Series A, 5.25% 10/1/21 (MBIA Insured) | 7,575 | 7,842 | ||
Alameda County Ctfs. of Prtn.: | ||||
(Santa Rita Jail Proj.) Series A: | ||||
5% 12/1/18 (AMBAC Insured) | 2,645 | 2,819 | ||
5% 12/1/20 (AMBAC Insured) | 2,810 | 2,943 | ||
0% 6/15/17 (MBIA Insured) | 2,310 | 1,504 | ||
Alhambra Unified School District Series 2004 A, 5% 8/1/25 (FGIC Insured) | 1,880 | 1,936 | ||
Anaheim Pub. Fing. Auth. Lease Rev. (Anaheim Pub. Impt. Proj.): | ||||
Series A, 6% 9/1/24 (FSA Insured) | 1,000 | 1,159 | ||
Series C: | ||||
0% 9/1/19 (FSA Insured) | 1,285 | 743 | ||
0% 9/1/22 (FSA Insured) | 5,150 | 2,511 | ||
Antelope Valley Cmnty. College District 5.25% 8/1/39 (MBIA Insured) (b) | 3,500 | 3,637 | ||
Azusa Unified School District 5.375% 7/1/16 (FSA Insured) | 1,225 | 1,310 | ||
Bay Area Infrastructure Fing. Auth.: | ||||
5% 8/1/17 (AMBAC Insured) | 5,000 | 5,205 | ||
5% 8/1/17 (FGIC Insured) | 5,030 | 5,343 | ||
Burbank Glendale Pasadena Arpt. Auth. Rev. Series 2005 B: | ||||
5% 7/1/12 (AMBAC Insured) (d) | 1,840 | 1,917 | ||
5.25% 7/1/14 (AMBAC Insured) (d) | 2,035 | 2,164 | ||
5.25% 7/1/16 (AMBAC Insured) (d) | 1,255 | 1,339 | ||
5.25% 7/1/17 (AMBAC Insured) (d) | 1,370 | 1,455 | ||
Burbank Unified School District: | ||||
Series B, 0% 8/1/20 (FGIC Insured) | 3,835 | 2,116 | ||
Series C, 0% 8/1/20 (FGIC Insured) | 5,865 | 3,237 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
California - continued | ||||
Butte-Glenn Cmnty. College District Series A, 5.5% 8/1/18 (MBIA Insured) | $ 1,085 | $ 1,171 | ||
Cabrillo Cmnty. College District Series A, 5.25% 8/1/15 (MBIA Insured) | 1,725 | 1,865 | ||
Cabrillo Unified School District Series A: | ||||
0% 8/1/10 (AMBAC Insured) | 2,150 | 1,929 | ||
0% 8/1/12 (AMBAC Insured) | 2,800 | 2,317 | ||
0% 8/1/17 (AMBAC Insured) | 1,000 | 650 | ||
0% 8/1/18 (AMBAC Insured) | 2,000 | 1,234 | ||
California Dept. of Wtr. Resources Pwr. Supply Rev. Series A: | ||||
5% 5/1/17 | 1,000 | 1,040 | ||
5.5% 5/1/14 (AMBAC Insured) | 7,935 | 8,582 | ||
5.5% 5/1/15 (AMBAC Insured) | 9,000 | 9,702 | ||
6% 5/1/13 | 2,320 | 2,541 | ||
6% 5/1/14 | 7,500 | 8,200 | ||
6% 5/1/14 (MBIA Insured) | 2,000 | 2,201 | ||
California Dept. of Wtr. Resources Rev. (Wtr. Sys. Proj.) Series J1, 7% 12/1/12 | 730 | 841 | ||
California Econ. Recovery Series A: | ||||
5% 7/1/15 | 12,275 | 13,076 | ||
5% 7/1/15 (MBIA Insured) | 9,300 | 9,936 | ||
5.25% 7/1/13 | 3,000 | 3,227 | ||
5.25% 7/1/14 | 3,540 | 3,830 | ||
California Edl. Facilities Auth. Rev.: | ||||
(Chapman Univ. Proj.) 5.375% 10/1/16 (AMBAC Insured) | 510 | 516 | ||
(College & Univ. Fing. Prog.): | ||||
5% 2/1/16 | 1,600 | 1,587 | ||
5% 2/1/17 | 1,000 | 988 | ||
(Loyola Marymount Univ. Proj.) 0% 10/1/16 (MBIA Insured) | 2,280 | 1,550 | ||
(Pomona College Proj.) Series A, 0% 7/1/38 | 3,155 | 646 | ||
(Santa Clara Univ. Proj.): | ||||
5.25% 9/1/17 (AMBAC Insured) | 1,000 | 1,097 | ||
5.25% 9/1/26 | 7,910 | 8,307 | ||
(Scripps College Proj.): | ||||
Series 2001, 5.25% 8/1/26 | 1,000 | 1,020 | ||
5.125% 2/1/30 | 6,000 | 6,027 | ||
(Stanford Univ. Proj.): | ||||
Series N, 5.2% 12/1/27 | 20,000 | 20,235 | ||
Series O, 5.125% 1/1/31 | 5,000 | 5,053 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
California - continued | ||||
California Gen. Oblig.: | ||||
Series 1, 5% 9/1/17 | $ 2,000 | $ 2,113 | ||
Series 1992, 6.25% 9/1/12 (FGIC Insured) | 2,000 | 2,178 | ||
Series 2005, 5.5% 6/1/28 | 275 | 282 | ||
Series 2007: | ||||
5.625% 5/1/20 | 150 | 157 | ||
5.625% 5/1/20 (Pre-Refunded to 5/1/10 @ 101) (e) | 255 | 270 | ||
5.625% 5/1/26 | 215 | 223 | ||
5.625% 5/1/26 (Pre-Refunded to 5/1/10 @ 101) (e) | 80 | 85 | ||
5.75% 5/1/30 | 160 | 166 | ||
5.75% 5/1/30 (Pre-Refunded to 5/1/10 @ 101) (e) | 60 | 64 | ||
4.5% 8/1/30 | 5,000 | 4,674 | ||
4.5% 10/1/36 | 5,000 | 4,554 | ||
5% 2/1/11 | 3,000 | 3,122 | ||
5% 11/1/12 | 4,105 | 4,304 | ||
5% 3/1/13 | 1,095 | 1,157 | ||
5% 3/1/15 | 3,050 | 3,242 | ||
5% 8/1/18 | 48,010 | 50,622 | ||
5% 8/1/21 | 5,000 | 5,174 | ||
5% 12/1/21 | 10,000 | 10,343 | ||
5% 2/1/23 | 1,095 | 1,116 | ||
5% 2/1/26 (AMBAC Insured) | 1,500 | 1,531 | ||
5% 3/1/26 | 2,800 | 2,841 | ||
5% 6/1/26 | 4,300 | 4,357 | ||
5% 6/1/27 (AMBAC Insured) | 2,800 | 2,866 | ||
5% 6/1/29 | 5,005 | 5,040 | ||
5% 2/1/31 (MBIA Insured) | 2,800 | 2,841 | ||
5% 3/1/31 | 4,600 | 4,622 | ||
5% 4/1/31 (AMBAC Insured) | 5 | 5 | ||
5% 6/1/31 | 2,000 | 2,009 | ||
5% 12/1/31 (MBIA Insured) | 2,000 | 2,035 | ||
5% 9/1/32 | 4,200 | 4,218 | ||
5% 9/1/32 | 10,000 | 10,043 | ||
5% 10/1/32 (MBIA Insured) | 1,000 | 1,017 | ||
5% 8/1/33 | 3,400 | 3,411 | ||
5% 9/1/33 | 10,000 | 10,036 | ||
5% 8/1/35 | 6,200 | 6,212 | ||
5% 9/1/35 | 9,400 | 9,419 | ||
5.125% 11/1/24 | 2,800 | 2,869 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
California - continued | ||||
California Gen. Oblig.: - continued | ||||
5.125% 2/1/26 | $ 2,800 | $ 2,859 | ||
5.25% 2/1/11 | 5,790 | 6,071 | ||
5.25% 3/1/11 | 1,405 | 1,475 | ||
5.25% 3/1/12 | 3,000 | 3,181 | ||
5.25% 10/1/14 | 300 | 300 | ||
5.25% 2/1/15 | 2,315 | 2,470 | ||
5.25% 2/1/15 (MBIA Insured) | 5,040 | 5,396 | ||
5.25% 2/1/16 | 7,500 | 7,984 | ||
5.25% 2/1/16 (MBIA Insured) | 4,050 | 4,308 | ||
5.25% 10/1/17 | 260 | 260 | ||
5.25% 11/1/18 | 3,000 | 3,179 | ||
5.25% 2/1/20 | 6,805 | 7,132 | ||
5.25% 2/1/22 | 2,020 | 2,103 | ||
5.25% 11/1/26 | 1,000 | 1,032 | ||
5.25% 2/1/27 (MBIA Insured) | 5,490 | 5,696 | ||
5.25% 4/1/27 | 5 | 5 | ||
5.25% 2/1/28 | 5,085 | 5,225 | ||
5.25% 4/1/29 | 5 | 5 | ||
5.25% 11/1/29 | 5,000 | 5,134 | ||
5.25% 4/1/30 | 35 | 36 | ||
5.25% 2/1/33 | 8,150 | 8,322 | ||
5.25% 12/1/33 | 105 | 108 | ||
5.25% 12/1/33 (Pre-Refunded to 6/1/14 @ 100) (e) | 5,395 | 5,863 | ||
5.375% 4/1/15 (MBIA Insured) | 35 | 37 | ||
5.5% 6/1/10 | 1,625 | 1,701 | ||
5.5% 3/1/11 (XL Cap. Assurance, Inc. Insured) | 3,050 | 3,229 | ||
5.5% 5/1/13 (MBIA Insured) | 100 | 106 | ||
5.5% 4/1/28 | 5 | 5 | ||
5.5% 4/1/30 | 25 | 26 | ||
5.5% 11/1/33 | 34,870 | 36,534 | ||
5.75% 10/1/10 | 7,325 | 7,759 | ||
5.75% 12/1/10 | 2,500 | 2,656 | ||
6% 4/1/18 | 2,545 | 2,912 | ||
6.75% 8/1/10 | 5,675 | 6,141 | ||
6.75% 8/1/12 | 1,100 | 1,242 | ||
California Health Facilities Fing. Auth. Rev.: | ||||
(Catholic Healthcare West Proj.) Series I, 4.95%, tender 7/1/14 (c) | 5,000 | 5,142 | ||
(Cedars-Sinai Med. Ctr. Proj.) 5% 11/15/14 | 1,485 | 1,547 | ||
(Cottage Health Sys. Proj.) Series B, 5.25% 11/1/18 (MBIA Insured) | 1,260 | 1,331 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
California - continued | ||||
California Hsg. Fin. Agcy. Rev.: | ||||
Series 1983 A, 0% 2/1/15 | $ 7,592 | $ 4,214 | ||
Series 1983 B, 0% 8/1/15 | 95 | 43 | ||
Series J, 4.85% 8/1/27 (MBIA Insured) (d) | 865 | 870 | ||
California Infrastructure & Econ. Dev. Bank Rev.: | ||||
(YMCA Metropolitan L.A. Proj.) Series 2001: | ||||
5.25% 2/1/26 (AMBAC Insured) | 2,000 | 2,085 | ||
5.25% 2/1/32 (AMBAC Insured) | 6,295 | 6,533 | ||
Series B, 5% 5/1/19 (FGIC Insured) | 1,000 | 1,055 | ||
Series C, 3.9%, tender 12/1/11 (c) | 2,150 | 2,167 | ||
5% 12/1/27 | 1,080 | 1,083 | ||
5% 12/1/32 | 1,000 | 993 | ||
5% 10/1/33 | 7,235 | 7,360 | ||
5% 12/1/42 | 3,000 | 2,941 | ||
California Poll. Cont. Fing. Auth. Ctfs. of Prtn. (San Diego Gas & Elec. Co. Proj.) 5.9% 6/1/14 (MBIA Insured) | 4,000 | 4,477 | ||
California Poll. Cont. Fing. Auth. Solid Waste Disp. Rev. (Waste Mgmt., Inc. Proj.): | ||||
Series A, 5.125%, tender 5/1/14 (c)(d) | 9,000 | 9,073 | ||
Series A1, 4.7%, tender 4/1/12 (c)(d) | 3,250 | 3,226 | ||
California Pub. Works Board Lease Rev.: | ||||
(Butterfield State Office Complex Proj.) Series 2005 A: | ||||
5% 6/1/13 | 2,500 | 2,641 | ||
5% 6/1/14 | 2,000 | 2,119 | ||
5.25% 6/1/24 | 5,400 | 5,569 | ||
5.25% 6/1/25 | 5,000 | 5,144 | ||
5.25% 6/1/30 | 4,000 | 4,073 | ||
(California Cmnty. College Projs.) Series A, 5.25% 12/1/16 | 4,450 | 4,564 | ||
(California State Univ. Proj.): | ||||
Series 2006 G: | ||||
5% 11/1/20 | 1,825 | 1,883 | ||
5% 11/1/21 | 2,020 | 2,074 | ||
Series A, 5% 10/1/14 (FGIC Insured) | 2,700 | 2,887 | ||
(Capitol East End Complex-Blocks 171-174 & 225 Proj.) Series A, 5.25% 12/1/18 (AMBAC Insured) | 5,000 | 5,280 | ||
(Coalinga State Hosp. Proj.): | ||||
Series 2004 A, 5.5% 6/1/17 | 9,980 | 10,734 | ||
Series A: | ||||
5.25% 6/1/12 | 2,485 | 2,636 | ||
5.5% 6/1/15 | 1,000 | 1,083 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
California - continued | ||||
California Pub. Works Board Lease Rev.: - continued | ||||
(Dept. of Corrections & Rehab. Proj.) Series F: | ||||
5% 11/1/15 (FGIC Insured) | $ 2,455 | $ 2,633 | ||
5% 11/1/16 (FGIC Insured) | 2,000 | 2,147 | ||
(Dept. of Corrections State Prison Proj.) Series E: | ||||
5.5% 6/1/15 (FSA Insured) | 2,000 | 2,150 | ||
5.5% 6/1/15 (MBIA Insured) | 1,000 | 1,075 | ||
(Dept. of Corrections, Madera State Prison Proj.) Series E, 5.5% 6/1/15 | 8,775 | 9,387 | ||
(Dept. of Corrections, Monterey County State Prison Proj.) Series C: | ||||
5.5% 6/1/15 | 6,100 | 6,576 | ||
5.5% 6/1/17 (MBIA Insured) | 4,775 | 5,164 | ||
(Dept. of Corrections, Susanville State Prison Proj.) Series D, 5.25% 6/1/15 (FSA Insured) | 4,050 | 4,355 | ||
(Dept. of Gen. Services Butterfield Proj.) Series A, 5% 6/1/23 | 2,900 | 2,944 | ||
(Kern County at Delano II Proj.) Series 2003 C, 5.5% 6/1/13 | 2,000 | 2,164 | ||
(Ten Administrative Segregation Hsg. Units Proj.) Series 2002 A, 5.25% 3/1/18 (AMBAC Insured) | 2,500 | 2,639 | ||
(Univ. of California Research Proj.): | ||||
Series E, 5% 10/1/23 | 2,410 | 2,479 | ||
5% 11/1/25 (MBIA Insured) | 5,165 | 5,304 | ||
(Univ. of California Revs. Proj.) Series E 5.25% 10/1/21 | 2,900 | 3,041 | ||
(Various California State Univ. Projs.) Series B, 6.4% 12/1/09 | 3,700 | 3,814 | ||
Series 2005 H, 5% 6/1/16 | 5,000 | 5,258 | ||
Series 2005 J, 5.25% 1/1/16 (AMBAC Insured) | 3,500 | 3,799 | ||
Series 2005 K, 5% 11/1/17 | 5,625 | 5,893 | ||
California State Univ. Rev.: | ||||
(Systemwide Proj.) Series A: | ||||
5.375% 11/1/18 (AMBAC Insured) | 1,290 | 1,384 | ||
5.5% 11/1/16 (AMBAC Insured) | 1,500 | 1,620 | ||
5% 11/1/16 (FSA Insured) | 1,000 | 1,082 | ||
5% 11/1/17 (FSA Insured) | 1,225 | 1,325 | ||
California Statewide Communities Dev. Auth. Poll. Cont. Rev. (Southern California Edison Co.) 4.1%, tender 4/1/13 (XL Cap. Assurance, Inc. Insured) (c) | 9,700 | 9,801 | ||
California Statewide Communities Dev. Auth. Rev.: | ||||
(Cmnty. Hosp. Monterey Peninsula Proj.) Series B, 5.25% 6/1/23 (FSA Insured) | 1,800 | 1,881 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
California - continued | ||||
California Statewide Communities Dev. Auth. Rev.: - continued | ||||
(Daughters of Charity Health Sys. Proj.): | ||||
Series G, 5.25% 7/1/12 | $ 900 | $ 936 | ||
5.25% 7/1/13 | 1,475 | 1,539 | ||
(Kaiser Fund Hosp./Health Place, Inc. Proj.) Series 2002 C, 3.85%, tender 6/1/12 (c) | 3,000 | 2,951 | ||
(Kaiser Permanente Health Sys. Proj.): | ||||
Series 2004 H, 2.625%, tender 5/1/08 (c) | 1,795 | 1,780 | ||
Series B, 4.3712% 4/1/36 (c) | 6,500 | 5,852 | ||
Series I, 3.45%, tender 5/1/11 (c) | 2,750 | 2,677 | ||
(Kaiser Permanente Proj.) Series A, 4.75% 4/1/33 | 2,000 | 1,884 | ||
(Los Angeles Orthopaedic Hosp. Foundation Prog.) 5.75% 6/1/30 (AMBAC Insured) | 10,000 | 10,115 | ||
(Sutter Health Systems Proj.): | ||||
Series B, 5.625% 8/15/42 | 5,000 | 5,126 | ||
5% 11/15/43 (MBIA Insured) | 4,125 | 4,144 | ||
(Thomas Jefferson School of Law Proj.) 7.75% 10/1/31 (Pre-Refunded to 10/1/11 @ 101) (e) | 1,460 | 1,669 | ||
California Statewide Communities Dev. Auth. Rev. Ctfs. of Prtn. (Catholic Health Care West Proj.): | ||||
6% 7/1/09 (Escrowed to Maturity) (e) | 300 | 308 | ||
6% 7/1/09 (Escrowed to Maturity) (e) | 985 | 1,011 | ||
Carlsbad Unified School District 0% 11/1/15 (FGIC Insured) | 1,700 | 1,210 | ||
Castaic Lake Wtr. Agcy. Ctfs. of Prtn. (Wtr. Sys. Impt. Proj.) Series A, 7% 8/1/11 (MBIA Insured) | 1,500 | 1,679 | ||
Clovis Pub. Fing. Auth. Wastewtr. Rev. 5% 8/1/35 (MBIA Insured) | 3,295 | 3,353 | ||
Colton Joint Unified School District Series 2001 C, 5.25% 2/1/22 (FGIC Insured) | 1,200 | 1,272 | ||
Commerce Refuse To Energy Auth. Rev.: | ||||
5.5% 7/1/14 (MBIA Insured) | 1,545 | 1,700 | ||
5.5% 7/1/15 (MBIA Insured) | 2,685 | 2,972 | ||
Contra Costa County Ctfs. of Prtn. (Merrithew Memorial Hosp. Proj.) 0% 11/1/14 (Escrowed to Maturity) (e) | 3,000 | 2,271 | ||
Corona-Norco Unified School District Series A: | ||||
5% 8/1/19 (FSA Insured) | 2,570 | 2,725 | ||
5% 8/1/22 (FSA Insured) | 1,470 | 1,534 | ||
5% 8/1/25 (FSA Insured) | 1,435 | 1,485 | ||
5% 8/1/26 (FSA Insured) | 2,000 | 2,065 | ||
5% 8/1/27 (FSA Insured) | 1,785 | 1,838 | ||
5% 8/1/31 (FSA Insured) | 5,000 | 5,118 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
California - continued | ||||
Ctr. Unified School District: | ||||
Series 1997 C, 0% 9/1/20 (MBIA Insured) | $ 2,000 | $ 1,099 | ||
Series C, 0% 9/1/18 (MBIA Insured) | 2,000 | 1,229 | ||
Cucamonga County Wtr. District 5% 9/1/36 (MBIA Insured) | 2,890 | 2,934 | ||
Davis Spl. Tax Rev.: | ||||
5% 9/1/11 (AMBAC Insured) | 595 | 623 | ||
5% 9/1/12 (AMBAC Insured) | 625 | 659 | ||
5% 9/1/13 (AMBAC Insured) | 655 | 695 | ||
5% 9/1/14 (AMBAC Insured) | 690 | 735 | ||
5% 9/1/15 (AMBAC Insured) | 725 | 774 | ||
5% 9/1/18 (AMBAC Insured) | 835 | 882 | ||
5% 9/1/20 (AMBAC Insured) | 925 | 964 | ||
5% 9/1/22 (AMBAC Insured) | 1,020 | 1,053 | ||
Duarte Ctfs. of Prtn. Series A: | ||||
5% 4/1/11 | 2,780 | 2,832 | ||
5% 4/1/12 | 4,210 | 4,285 | ||
5% 4/1/13 | 1,830 | 1,862 | ||
5.25% 4/1/09 | 1,600 | 1,624 | ||
East Bay Muni. Util. District Wtr. Sys. Rev. Series 2005 A, 5% 6/1/35 (MBIA Insured) | 15,600 | 15,920 | ||
El Centro Fing. Auth. Wastewtr. Series A, 5.25% 10/1/35 (FSA Insured) | 8,340 | 8,657 | ||
Elk Grove Fin. Auth. Spl. Tax Rev. 5% 9/1/17 (AMBAC Insured) | 2,420 | 2,557 | ||
Elk Grove Unified School District Spl. Tax (Cmnty. Facilities District #1 Proj.) 6.5% 12/1/24 (AMBAC Insured) | 4,025 | 4,958 | ||
Empire Union School District Spl. Tax (Cmnty. Facilities District No. 1987 Proj.) Series 1A: | ||||
0% 10/1/24 (AMBAC Insured) | 1,665 | 721 | ||
0% 10/1/25 (AMBAC Insured) | 1,665 | 683 | ||
Encinitas Union School District: | ||||
0% 8/1/10 (MBIA Insured) | 1,000 | 897 | ||
0% 8/1/21 (MBIA Insured) | 1,000 | 521 | ||
Escondido Union High School District 0% 11/1/16 (Escrowed to Maturity) (e) | 3,500 | 2,412 | ||
Fairfield-Suisun Swr. District Swr. Rev. Series A, 0% 5/1/09 (MBIA Insured) | 2,080 | 1,956 | ||
Fairfield-Suisun Unified School District 5.5% 8/1/28 (MBIA Insured) | 3,000 | 3,204 | ||
Fillmore Pub. Fing. Auth. Rev. (Wtr. Recycling Fing. Proj.) 5% 5/1/37 (CDC IXIS Finl. Guaranty Insured) | 2,500 | 2,530 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
California - continued | ||||
Folsom Cordova Unified School District School Facilities Impt. District #1 Series A, 0% 10/1/20 (MBIA Insured) | $ 1,315 | $ 720 | ||
Foothill-De Anza Cmnty. College District: | ||||
0% 8/1/15 (MBIA Insured) | 2,430 | 1,755 | ||
0% 8/1/19 (MBIA Insured) | 5,365 | 3,151 | ||
0% 8/1/20 (MBIA Insured) | 6,425 | 3,568 | ||
Foothill/Eastern Trans. Corridor Agcy. Toll Road Rev.: | ||||
Series A: | ||||
0% 1/1/15 (Escrowed to Maturity) (e) | 18,535 | 13,849 | ||
0% 1/1/18 (Escrowed to Maturity) (e) | 1,000 | 636 | ||
5% 1/1/35 (MBIA Insured) | 24,070 | 24,289 | ||
0% 1/15/27 (a) | 4,000 | 3,671 | ||
0% 1/15/27 (MBIA Insured) (a) | 4,500 | 4,330 | ||
0% 1/15/29 (a) | 4,000 | 3,657 | ||
5% 1/15/16 (MBIA Insured) | 5,860 | 6,073 | ||
5.75% 1/15/40 | 8,155 | 8,234 | ||
Fremont Unified School District, Alameda County Series F, 0% 8/1/09 (MBIA Insured) | 1,000 | 931 | ||
Fullerton Univ. Foundation Auxiliary Organization Rev. Series A: | ||||
5.75% 7/1/25 (MBIA Insured) | 1,250 | 1,325 | ||
5.75% 7/1/30 (MBIA Insured) | 1,000 | 1,060 | ||
Glendora Unified School District Series 2005 A, 5.25% 8/1/26 (MBIA Insured) | 1,000 | 1,052 | ||
Golden State Tobacco Securitization Corp. Tobacco Settlement Rev.: | ||||
Series 2003 A1: | ||||
5% 6/1/21 (Pre-Refunded to 6/1/13 @ 100) (e) | 2,120 | 2,143 | ||
6.625% 6/1/40 (Pre-Refunded to 6/1/13 @ 100) (e) | 2,900 | 3,314 | ||
Series 2003 B, 5% 6/1/43 (Pre-Refunded to 6/1/13 @ 100) (e) | 5,000 | 5,299 | ||
Series A: | ||||
5% 6/1/45 | 13,425 | 13,052 | ||
5% 6/1/45 (FGIC Insured) | 3,000 | 3,015 | ||
Series A-1: | ||||
5% 6/1/11 | 1,500 | 1,531 | ||
5% 6/1/13 | 1,000 | 1,019 | ||
5% 6/1/14 | 2,000 | 2,031 | ||
5% 6/1/15 | 1,000 | 1,013 | ||
Series A1: | ||||
5% 6/1/12 | 1,400 | 1,428 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
California - continued | ||||
Golden State Tobacco Securitization Corp. Tobacco Settlement Rev.: - continued | ||||
Series A1: | ||||
5% 6/1/33 | $ 3,000 | $ 2,715 | ||
Series B: | ||||
5% 6/1/11 (Escrowed to Maturity) (e) | 3,610 | 3,776 | ||
5.5% 6/1/43 (Pre-Refunded to 6/1/13 @ 100) (e) | 6,300 | 6,837 | ||
Golden West Schools Fing. Auth. Rev. Series A, 0% 8/1/18 (MBIA Insured) | 2,750 | 1,687 | ||
Indio Pub. Fing. Auth. Lease Rev. Series B, 3.8%, tender 11/1/12 (AMBAC Insured) (c) | 2,500 | 2,502 | ||
La Quinta Redev. Agcy. Tax. Allocation (Area #1 Redev. Proj.) 7.3% 9/1/11 (MBIA Insured) | 555 | 628 | ||
Lancaster Fing. Auth. Tax Allocation Rev. 5% 2/1/31 (AMBAC Insured) | 3,445 | 3,486 | ||
Long Beach Hbr. Rev. Series A: | ||||
5% 5/15/14 (FGIC Insured) (d) | 2,000 | 2,102 | ||
5% 5/15/15 (FGIC Insured) (d) | 1,000 | 1,043 | ||
5% 5/15/22 (MBIA Insured) (d) | 2,735 | 2,771 | ||
6% 5/15/10 (FGIC Insured) (d) | 1,000 | 1,052 | ||
6% 5/15/12 (FGIC Insured) (d) | 3,500 | 3,800 | ||
Los Angeles Cmnty. Redev. Agcy. Lease Rev. (Vermont Manchester Social Services Proj.) 5% 9/1/21 (AMBAC Insured) | 2,805 | 2,874 | ||
Los Angeles County Ctfs. of Prtn.: | ||||
(Correctional Facilities Proj.) 0% 9/1/13 (Escrowed to Maturity) (e) | 3,380 | 2,685 | ||
(Disney Parking Proj.): | ||||
0% 3/1/10 | 2,000 | 1,812 | ||
0% 3/1/11 | 1,950 | 1,692 | ||
0% 3/1/12 | 2,180 | 1,805 | ||
0% 3/1/13 | 6,490 | 5,122 | ||
0% 9/1/14 (AMBAC Insured) | 3,860 | 2,895 | ||
0% 3/1/18 | 3,000 | 1,809 | ||
0% 3/1/19 | 3,200 | 1,821 | ||
0% 3/1/20 | 1,000 | 536 | ||
Los Angeles County Schools Regionalized Bus. Svcs. Corp. Ctfs. of Prtn. (Pooled Fing. Prog.) Series 2003 B: | ||||
5.375% 9/1/16 (FSA Insured) | 1,045 | 1,128 | ||
5.375% 9/1/17 (FSA Insured) | 1,095 | 1,180 | ||
5.375% 9/1/18 (FSA Insured) | 1,155 | 1,236 | ||
5.375% 9/1/19 (FSA Insured) | 1,210 | 1,289 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
California - continued | ||||
Los Angeles Ctfs. of Prtn. (Dept. Pub. Social Svcs. Proj.) Series A, 5.5% 8/1/24 (AMBAC Insured) | $ 3,700 | $ 3,836 | ||
Los Angeles Dept. Arpt. Rev.: | ||||
(Los Angeles Int'l. Arpt. Proj.) Series D, 5.625% 5/15/12 (FGIC Insured) (d) | 290 | 290 | ||
Series 2006 A: | ||||
5% 5/15/17 (MBIA Insured) (d) | 3,990 | 4,144 | ||
5% 5/15/18 (MBIA Insured) (d) | 1,410 | 1,460 | ||
Series A: | ||||
5% 5/15/16 (MBIA Insured) (d) | 1,000 | 1,055 | ||
5.25% 5/15/19 (FGIC Insured) | 3,000 | 3,147 | ||
Los Angeles Dept. of Wtr. & Pwr. Elec. Plant Rev.: | ||||
4.75% 8/15/12 (Escrowed to Maturity) (e) | 3,120 | 3,121 | ||
4.75% 8/15/16 (Escrowed to Maturity) (e) | 1,395 | 1,396 | ||
4.75% 10/15/20 (Escrowed to Maturity) (e) | 150 | 150 | ||
Los Angeles Dept. of Wtr. & Pwr. Wtrwks. Rev.: | ||||
Series 2001 A, 5.125% 7/1/41 | 15,000 | 15,173 | ||
Series 2004 C, 5% 7/1/34 (MBIA Insured) | 1,500 | 1,528 | ||
Series A, 5.125% 7/1/41 (MBIA Insured) | 3,000 | 3,050 | ||
5.5% 10/15/11 (Escrowed to Maturity) (e) | 3,670 | 3,777 | ||
Los Angeles Hbr. Dept. Rev.: | ||||
Series 2005 B, 5% 8/1/14 (FGIC Insured) (d) | 6,265 | 6,612 | ||
7.6% 10/1/18 (Escrowed to Maturity) (e) | 12,970 | 15,380 | ||
Los Angeles Unified School District: | ||||
Series 2004 A1, 5% 7/1/17 (MBIA Insured) | 3,000 | 3,176 | ||
Series H: | ||||
5% 7/1/18 (FSA Insured) | 1,500 | 1,608 | ||
5% 7/1/19 (FSA Insured) | 7,360 | 7,836 | ||
M-S-R Pub. Pwr. Agcy. San Juan Proj. Rev. Series D, 6.75% 7/1/20 (Escrowed to Maturity) (e) | 2,095 | 2,425 | ||
Manhattan Beach Unified School District Series A, 0% 9/1/09 (FGIC Insured) | 975 | 905 | ||
Marina Coast Wtr. District Ctfs. Prtn. 5% 6/1/37 (MBIA Insured) | 3,500 | 3,552 | ||
Merced Union High School District Series A, 0% 8/1/22 (FGIC Insured) | 1,100 | 542 | ||
Metropolitan Wtr. District of Southern California Wtrwks. Rev. Series 2005 A, 5% 7/1/35 (FSA Insured) | 17,800 | 18,204 | ||
Modesto Elementary School District, Stanislaus County Series A: | ||||
0% 8/1/21 (FGIC Insured) | 2,000 | 1,043 | ||
0% 8/1/25 (FGIC Insured) | 2,800 | 1,169 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
California - continued | ||||
Modesto Gen. Oblig. Ctfs. of Prtn.: | ||||
(Cmnty. Ctr. Refing. Proj.) Series A, 5% 11/1/23 (AMBAC Insured) | $ 2,500 | $ 2,639 | ||
(Golf Course Refing. Proj.) Series B, 5% 11/1/23 (FGIC Insured) | 1,585 | 1,674 | ||
Modesto Irrigation District Ctfs. of Prtn.: | ||||
(Geysers Geothermal Pwr. Proj.) Series 1986 A, 5% 10/1/17 (Escrowed to Maturity) (e) | 5,000 | 5,004 | ||
(Rfdg. and Cap. Impts Proj.) Series A, 0% 10/1/10 (Escrowed to Maturity) (e) | 2,270 | 2,015 | ||
Monrovia Unified School District Series B, 0% 8/1/33 (FGIC Insured) | 2,500 | 683 | ||
Montebello Unified School District 0% 6/1/26 (FSA Insured) | 1,580 | 630 | ||
Monterey County Ctfs. of Prtn. 5% 8/1/18 (AMBAC Insured) | 3,580 | 3,795 | ||
Moreland School District Series 2003 B, 0% 8/1/27 (FGIC Insured) | 1,485 | 556 | ||
Murrieta Valley Unified School District Series A, 0% 9/1/13 (FGIC Insured) | 1,500 | 1,183 | ||
Natomas Unified School District 5.25% 8/1/30 (FGIC Insured) | 5,150 | 5,358 | ||
New Haven Unified School District: | ||||
12% 8/1/16 (FSA Insured) | 1,500 | 2,381 | ||
12% 8/1/17 (FSA Insured) | 1,000 | 1,633 | ||
North City West School Facilities Fing. Auth. Spl. Tax: | ||||
Subseries B, 5.25% 9/1/23 (AMBAC Insured) | 1,530 | 1,645 | ||
Subseries C: | ||||
5% 9/1/16 (AMBAC Insured) | 1,000 | 1,073 | ||
5% 9/1/17 (AMBAC Insured) | 2,735 | 2,933 | ||
Northern California Gas Auth. #1 Gas Proj. Rev.: | ||||
Series A, 5% 7/1/11 | 2,300 | 2,361 | ||
4.041% 7/1/13 (c) | 9,000 | 8,725 | ||
Northern California Pwr. Agcy. Pub. Pwr. Rev. (Hydro Elec. #1 Proj.) Series A, 7.5% 7/1/23 (Pre-Refunded to 7/1/21 @ 100) (e) | 3,850 | 4,986 | ||
Northern California Transmission Auth. Rev. (Ore Trans. Proj.) Series A, 7% 5/1/13 (MBIA Insured) | 6,100 | 6,797 | ||
Novato Unified School District 5.25% 8/1/17 (FGIC Insured) | 1,000 | 1,060 | ||
Oakland Redev. Agcy. Sub Tax Allocation (Central District Redev. Proj.): | ||||
5% 9/1/21 (Escrowed to Maturity) (e) | 1,000 | 1,054 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
California - continued | ||||
Oakland Redev. Agcy. Sub Tax Allocation (Central District Redev. Proj.): - continued | ||||
5.5% 9/1/17 (FGIC Insured) | $ 3,000 | $ 3,211 | ||
Ontario Redev. Fing. Auth. Rev. (Ctr. City Cimarron #1 Proj.) 0% 8/1/10 (MBIA Insured) | 3,255 | 2,921 | ||
Orange County Local Trans. Auth. Sales Tax Rev. 6.2% 2/14/11 (AMBAC Insured) | 7,000 | 7,477 | ||
Orange County Pub. Fin. Auth. Waste Mgt. Sys. Rev.: | ||||
5.75% 12/1/09 (AMBAC Insured) (d) | 3,620 | 3,764 | ||
5.75% 12/1/11 (AMBAC Insured) (d) | 4,000 | 4,280 | ||
Orange County Pub. Fin. Lease Rev. (Juvenile Justice Ctr. Facility Proj.) 5.375% 6/1/16 (AMBAC Insured) | 3,770 | 4,043 | ||
Oxnard Fin. Auth. Solid Waste Rev.: | ||||
5% 5/1/09 (AMBAC Insured) (d) | 1,785 | 1,814 | ||
5% 5/1/10 (AMBAC Insured) (d) | 1,820 | 1,862 | ||
5% 5/1/12 (AMBAC Insured) (d) | 2,065 | 2,145 | ||
Oxnard Fing. Auth. Wastewtr. Rev. (Redwood Trunk Swr. and Headworks Proj.) Series A, 5% 6/1/29 (FGIC Insured) | 3,000 | 3,067 | ||
Palmdale Elementary School District Spl. Tax (Cmnty. Facilities District #90-1 Proj.) 5.8% 8/1/29 (FSA Insured) | 6,410 | 6,699 | ||
Placer County Union High School District Series A: | ||||
0% 8/1/20 (FGIC Insured) | 2,000 | 1,104 | ||
0% 8/1/21 (FGIC Insured) | 1,000 | 521 | ||
Placer County Wtr. Agcy. Rev. (Middle Fork Proj.) Series A, 3.75% 7/1/12 | 2,030 | 2,028 | ||
Pomona Unified School District Series C, 6% 8/1/30 (Escrowed to Maturity) (e) | 4,035 | 4,175 | ||
Port of Oakland Gen. Oblig.: | ||||
Series 2002 N, 5% 11/1/12 (MBIA Insured) (d) | 2,800 | 2,932 | ||
Series L, 5.5% 11/1/20 (FGIC Insured) (d) | 3,405 | 3,565 | ||
5% 11/1/15 (MBIA Insured) (d) | 5,850 | 6,106 | ||
5% 11/1/17 (MBIA Insured) (d) | 3,355 | 3,477 | ||
5% 11/1/18 (MBIA Insured) (d) | 2,740 | 2,828 | ||
Port of Oakland Port Rev. Series G, 5.375% 11/1/08 (MBIA Insured) (d) | 1,805 | 1,835 | ||
Poway Unified School District Pub. Fing. Auth. Lease Rev. Cap. Appreciation 0%, tender 6/1/10 (FSA Insured) (c) | 4,800 | 4,305 | ||
Redwood City Elementary School District 0% 8/1/20 (FGIC Insured) | 4,825 | 2,663 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
California - continued | ||||
Richmond Redev. Agcy. Tax Allocation Rev. (Harbour Redev. Proj.) 7% 7/1/09 (FSA Insured) | $ 35 | $ 35 | ||
Riverside County Asset Leasing Corp. Leasehold Rev. (Riverside County Hosp. Proj.): | ||||
Series A, 6.5% 6/1/12 (MBIA Insured) | 15,500 | 16,851 | ||
Series B, 5.7% 6/1/16 (MBIA Insured) | 1,950 | 2,110 | ||
Riverside County Pub. Fing. Auth. Tax Allocation Rev. (Redev. Projs.): | ||||
Series A, 5% 10/1/18 (XL Cap. Assurance, Inc. Insured) | 3,740 | 3,917 | ||
5.25% 10/1/20 (XL Cap. Assurance, Inc. Insured) | 2,020 | 2,116 | ||
5.25% 10/1/21 (XL Cap. Assurance, Inc. Insured) | 2,125 | 2,219 | ||
Rocklin Unified School District: | ||||
0% 8/1/24 (FGIC Insured) | 1,370 | 608 | ||
0% 8/1/25 (FGIC Insured) | 2,725 | 1,147 | ||
0% 8/1/26 (FGIC Insured) | 1,365 | 545 | ||
Roseville City School District: | ||||
0% 8/1/25 (FGIC Insured) | 1,745 | 728 | ||
0% 8/1/27 (FGIC Insured) | 1,940 | 726 | ||
Sacramento City Fing. Auth. Lease Rev. Series A, 5.4% 11/1/20 (AMBAC Insured) | 2,000 | 2,177 | ||
Sacramento City Fing. Auth. Rev. (Combined Area Projs.) Series B, 0% 11/1/15 (MBIA Insured) | 7,735 | 5,485 | ||
Sacramento County Sanitation District Fing. Auth. Rev. 4.121% 12/1/35 (FGIC Insured) (c) | 10,000 | 9,790 | ||
Sacramento Muni. Util. District Elec. Rev.: | ||||
Series 2001 P, 5.25% 8/15/16 (FSA Insured) | 1,500 | 1,580 | ||
Series L, 5.125% 7/1/22 (MBIA Insured) | 4,000 | 4,083 | ||
Series R, 5% 8/15/33 (MBIA Insured) | 6,825 | 6,926 | ||
San Bernardino County Ctfs. of Prtn.: | ||||
(Cap. Facilities Proj.) Series B, 6.875% 8/1/24 (Escrowed to Maturity) (e) | 8,500 | 10,618 | ||
(Med. Ctr. Fing. Prog.) 5.5% 8/1/22 | 10,000 | 10,551 | ||
San Diego Cmnty. College District: | ||||
Series 2002 A, 5% 5/1/22 (FSA Insured) | 1,000 | 1,028 | ||
0% 8/1/17 (FSA Insured) | 3,395 | 2,208 | ||
San Diego County Ctfs. of Prtn.: | ||||
(The Bishop's School Proj.) Series A, 6% 9/1/34, LOC Bank of New York, New York | 4,090 | 4,444 | ||
5% 11/15/16 (AMBAC Insured) | 2,000 | 2,134 | ||
5% 11/15/17 (AMBAC Insured) | 2,000 | 2,123 | ||
5% 11/15/18 (AMBAC Insured) | 2,000 | 2,110 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
California - continued | ||||
San Diego County Ctfs. of Prtn.: - continued | ||||
5.25% 10/1/11 | $ 1,705 | $ 1,791 | ||
San Diego County Reg'l. Arpt. Auth. Arpt. Rev. 5% 7/1/12 (AMBAC Insured) (d) | 2,200 | 2,297 | ||
San Diego Unified School District (Election of 1998 Proj.): | ||||
Series 2000 B, 6.05% 7/1/18 (MBIA Insured) | 2,290 | 2,655 | ||
Series D, 5.25% 7/1/17 (FGIC Insured) (Pre-Refunded to 7/1/12 @ 101) (e) | 4,325 | 4,635 | ||
San Francisco Bay Area Rapid Trans. District Sales Tax Rev. 5.25% 7/1/18 | 1,620 | 1,653 | ||
San Francisco Bay Area Rapid Transit Fing. Auth. Series 2004 A, 5% 8/1/35 | 6,815 | 6,957 | ||
San Francisco City & County Arpts. Commission Int'l. Arpt. Rev.: | ||||
(SFO Fuel Co. Proj.) Series A: | ||||
5.125% 1/1/17 (AMBAC Insured) (d) | 6,000 | 6,076 | ||
5.25% 1/1/18 (AMBAC Insured) (d) | 4,515 | 4,574 | ||
Second Series 15A, 5.5% 5/1/09 (FSA Insured) (d) | 1,355 | 1,389 | ||
Second Series 18A: | ||||
5.25% 5/1/11 (MBIA Insured) (d) | 3,280 | 3,343 | ||
5.25% 5/1/14 (MBIA Insured) (d) | 2,750 | 2,799 | ||
Series 32F, 5.25% 5/1/19 (FGIC Insured) | 2,500 | 2,730 | ||
Series 32H: | ||||
5% 5/1/11 (CIFG North America Insured) (d) | 2,325 | 2,412 | ||
5% 5/1/12 (CIFG North America Insured) (d) | 1,000 | 1,045 | ||
San Francisco City & County Pub. Util. Commission Wtr. Rev. Series A, 5% 11/1/32 (MBIA Insured) | 2,800 | 2,864 | ||
San Francisco City & County Redev. Fing. Auth. Tax Allocation Rev.: | ||||
(San Francisco Redev. Proj.) Series B, 0% 8/1/10 (MBIA Insured) | 1,475 | 1,324 | ||
Series A: | ||||
0% 8/1/09 (FGIC Insured) | 1,085 | 1,011 | ||
0% 8/1/10 (FGIC Insured) | 1,085 | 974 | ||
San Joaquin County Ctfs. of Prtn. (County Administration Bldg. Proj.): | ||||
5% 11/15/20 (MBIA Insured) | 3,720 | 3,895 | ||
5% 11/15/21 (MBIA Insured) | 3,645 | 3,799 | ||
San Joaquin Hills Trans. Corridor Agcy. Toll Road Rev.: | ||||
Series 1997 A, 0% 1/15/26 (MBIA Insured) | 11,000 | 4,426 | ||
Series A: | ||||
0% 1/15/10 (MBIA Insured) | 2,240 | 2,049 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
California - continued | ||||
San Joaquin Hills Trans. Corridor Agcy. Toll Road Rev.: - continued | ||||
Series A: | ||||
0% 1/15/12 (MBIA Insured) | $ 7,000 | $ 5,902 | ||
0% 1/15/15 (MBIA Insured) | 5,000 | 3,666 | ||
0% 1/15/20 (MBIA Insured) | 3,765 | 2,118 | ||
0% 1/15/31 (MBIA Insured) | 5,000 | 1,524 | ||
5.5% 1/15/28 | 1,060 | 1,040 | ||
0% 1/1/12 (Escrowed to Maturity) (e) | 10,000 | 8,502 | ||
San Jose Int'l. Arpt. Rev.: | ||||
Series A, 5.25% 3/1/14 (FGIC Insured) | 1,000 | 1,050 | ||
5% 3/1/24 (AMBAC Insured) (b)(d) | 9,690 | 9,785 | ||
5% 3/1/37 (AMBAC Insured) (b)(d) | 10,000 | 9,939 | ||
San Jose Unified School District Santa Clara County: | ||||
Series 2002 B, 5% 8/1/25 (FGIC Insured) | 1,750 | 1,808 | ||
Series A, 5.375% 8/1/20 (FSA Insured) | 1,895 | 2,000 | ||
San Luis Obispo County Fing. Auth. Series 2000 A, 5.375% 8/1/24 (MBIA Insured) | 1,000 | 1,038 | ||
San Marcos Pub. Facilities Auth. Pub. Facilities Rev. 0% 9/1/15 (Escrowed to Maturity) (e) | 1,990 | 1,448 | ||
San Mateo County Cmnty. College District Series A, 0% 9/1/18 (FGIC Insured) | 3,000 | 1,854 | ||
San Mateo Unified School District (Election of 2000 Proj.) Series B: | ||||
0% 9/1/23 (FGIC Insured) | 2,000 | 941 | ||
0% 9/1/25 (FGIC Insured) | 1,490 | 630 | ||
0% 9/1/26 (FGIC Insured) | 1,500 | 602 | ||
Sanger Unified School District 5.6% 8/1/23 (MBIA Insured) | 3,000 | 3,325 | ||
Santa Clarita Cmnty. College District 4.25% 8/1/23 (MBIA Insured) | 2,200 | 2,090 | ||
Santa Margarita/Dana Point Auth. Rev. Impt. (Dists. 1, 2, 2A & 8 Proj.) Series A, 7.25% 8/1/12 (MBIA Insured) | 1,865 | 2,157 | ||
Santa Rosa Wastewtr. Rev. (Cap. Appreciation) Series B: | ||||
0% 9/1/20 (AMBAC Insured) | 4,030 | 2,215 | ||
0% 9/1/22 (AMBAC Insured) | 2,900 | 1,424 | ||
Shasta Joint Powers Fing. Auth. Lease Rev. (County Administration Bldg. Proj.) Series A, 5% 4/1/29 (MBIA Insured) | 5,015 | 5,071 | ||
Shasta Union High School District: | ||||
0% 8/1/26 (FGIC Insured) | 1,000 | 392 | ||
0% 5/1/28 (MBIA Insured) | 3,340 | 1,185 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
California - continued | ||||
Sierra View Local Health Care District Rev. 5.25% 7/1/37 (b) | $ 1,500 | $ 1,489 | ||
Southern California Pub. Pwr. Auth. Rev. (Multiple Projs.): | ||||
6.75% 7/1/10 | 1,400 | 1,508 | ||
6.75% 7/1/11 | 6,500 | 7,166 | ||
Sulphur Springs Union School District Series A, 0% 9/1/12 (MBIA Insured) | 2,750 | 2,268 | ||
Sulphur Springs Union School District Ctfs. of Prtn. (2002 School Facility Bridge Fdg. Prog.) 3.1%, tender 9/1/09 (FSA Insured) (c) | 3,000 | 2,964 | ||
Tahoe-Truckee Joint Unified School District Series A, 0% 9/1/10 (FGIC Insured) | 2,730 | 2,333 | ||
Torrance Ctfs. of Prtn. (Refing. & Pub. Impt. Proj.) Series B, 5.25% 6/1/34 (AMBAC Insured) | 3,000 | 3,108 | ||
Torrance Hosp. Rev. (Torrance Memorial Med. Ctr. Proj.) Series 2001 A: | ||||
5.5% 6/1/31 | 2,350 | 2,411 | ||
6% 6/1/22 | 1,100 | 1,169 | ||
Ukiah Unified School District 0% 8/1/14 (FGIC Insured) | 3,040 | 2,303 | ||
Union Elementary School District Series A: | ||||
0% 9/1/18 (FGIC Insured) | 1,000 | 615 | ||
0% 9/1/21 (FGIC Insured) | 2,995 | 1,555 | ||
Univ. of California Revs.: | ||||
(Ltd. Proj.) Series B: | ||||
5% 5/15/20 (FSA Insured) | 2,800 | 2,909 | ||
5% 5/15/33 (FSA Insured) | 1,000 | 1,014 | ||
(UCLA Med. Ctr. Proj.): | ||||
Series B, 5.5% 5/15/18 (AMBAC Insured) | 8,035 | 8,674 | ||
4.55% 12/1/09 (Escrowed to Maturity) (e)(f) | 21,213 | 21,623 | ||
Series 2005 F, 4.75% 5/15/35 (FSA Insured) | 3,000 | 2,897 | ||
Series A, 5.125% 5/15/18 (AMBAC Insured) | 2,000 | 2,103 | ||
Series B: | ||||
5% 5/15/16 (FSA Insured) | 2,100 | 2,225 | ||
5% 5/15/17 (FSA Insured) | 4,000 | 4,218 | ||
5.25% 5/15/16 (AMBAC Insured) | 7,120 | 7,602 | ||
Series C, 4.75% 5/15/37 (MBIA Insured) | 3,980 | 3,833 | ||
Series K, 5% 5/15/22 | 6,455 | 6,713 | ||
Upland Ctfs. of Prtn. (San Antonio Cmnty. Hosp. Proj.): | ||||
5.25% 1/1/08 | 700 | 701 | ||
5.25% 1/1/13 | 8,500 | 8,506 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
California - continued | ||||
Val Verde Unified School District Ctfs. of Prtn.: | ||||
5% 1/1/35 (FGIC Insured) | $ 2,090 | $ 2,124 | ||
5% 1/1/35 (Pre-Refunded to 1/1/15 @ 100) (e) | 995 | 1,069 | ||
5.25% 1/1/17 (Pre-Refunded to 1/1/15 @ 100) (e) | 1,000 | 1,091 | ||
5.25% 1/1/18 (Pre-Refunded to 1/1/15 @ 100) (e) | 1,380 | 1,505 | ||
Victor Elementary School District Series A, 0% 6/1/14 (MBIA Insured) | 2,375 | 1,805 | ||
Vista Unified School District Series A: | ||||
5.375% 8/1/15 (FSA Insured) | 130 | 139 | ||
5.375% 8/1/16 (FSA Insured) | 100 | 107 | ||
Walnut Valley Unified School District Series D: | ||||
0% 8/1/30 (FGIC Insured) | 2,875 | 911 | ||
0% 8/1/31 (FGIC Insured) | 2,715 | 815 | ||
0% 8/1/32 (FGIC Insured) | 1,315 | 374 | ||
5.25% 8/1/16 (FGIC Insured) | 1,000 | 1,069 | ||
Washington Township Health Care District Rev. Series A: | ||||
5% 7/1/23 | 1,460 | 1,454 | ||
5% 7/1/25 | 1,665 | 1,644 | ||
5% 7/1/37 | 1,750 | 1,664 | ||
Western Placer Unified School District Ctfs. of Prtn. (School Facilities Proj.) Series B, 3.625%, tender 12/1/09 (FSA Insured) (c) | 3,300 | 3,289 | ||
Yuba City Unified School District Series A, 0% 9/1/21 (FGIC Insured) | 2,090 | 1,093 | ||
1,580,255 | ||||
Guam - 0.2% | ||||
Guam Wtrwks. Auth. Wtr. and Wastewtr. Sys. Rev.: | ||||
5% 7/1/09 | 1,100 | 1,105 | ||
5.875% 7/1/35 | 1,875 | 1,930 | ||
3,035 | ||||
Puerto Rico - 0.9% | ||||
Puerto Rico Commonwealth Gen. Oblig. Series 2006A, 3.474% 7/1/21 (FGIC Insured) (c) | 4,600 | 4,459 | ||
Puerto Rico Commonwealth Hwy. & Trans. Auth. Trans. Rev. Series N, 5.25% 7/1/39 (FGIC Insured) | 6,500 | 7,087 | ||
Puerto Rico Sales Tax Fing. Corp. Sales Tax Rev. Series A: | ||||
0% 8/1/41 (FGIC Insured) | 9,500 | 1,672 | ||
0% 8/1/54 (AMBAC Insured) | 9,500 | 840 | ||
14,058 | ||||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
Virgin Islands - 0.1% | ||||
Virgin Islands Pub. Fin. Auth. Rev. Series A: | ||||
5% 10/1/10 | $ 550 | $ 565 | ||
5.25% 10/1/15 | 1,255 | 1,325 | ||
1,890 |
TOTAL INVESTMENT PORTFOLIO - 100.8% (Cost $1,583,045) | 1,599,238 | ||
NET OTHER ASSETS - (0.8)% | (13,020) | ||
NET ASSETS - 100% | $ 1,586,218 |
Legend |
(a) Security initially issued in zero coupon form which converts to coupon form at a specified rate and date. The rate shown is the rate at period end. |
(b) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(c) The coupon rate shown on floating or adjustable rate securities represents the rate at period end. |
(d) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals. |
(e) Security collateralized by an amount sufficient to pay interest and principal. |
(f) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $21,623,000 or 1.4% of net assets. |
Additional information on each holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
Univ. of California Revs. (UCLA Med. Ctr. Proj.) 4.55% 12/1/09 | 3/6/02 | $ 21,213 |
Other Information |
The distribution of municipal securities by revenue source, as a percentage of total net assets, is as follows: |
General Obligations | 41.3% |
Transportation | 10.8% |
Escrowed/Pre-Refunded | 9.3% |
Water & Sewer | 7.5% |
Education | 7.0% |
Special Tax | 6.6% |
Electric Utilities | 5.5% |
Health Care | 5.3% |
Others* (individually less than 5%) | 6.7% |
100.0% |
*Includes net other assets |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | August 31, 2007 (Unaudited) | |
Assets | ||
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $1,583,045) | $ 1,599,238 | |
Cash | 1,188 | |
Receivable for fund shares sold | 1,453 | |
Interest receivable | 16,841 | |
Prepaid expenses | 2 | |
Other receivables | 165 | |
Total assets | 1,618,887 | |
Liabilities | ||
Payable for investments purchased | $ 4,178 | |
Delayed delivery | 24,209 | |
Payable for fund shares redeemed | 1,579 | |
Distributions payable | 1,694 | |
Accrued management fee | 482 | |
Distribution fees payable | 15 | |
Other affiliated payables | 480 | |
Other payables and accrued expenses | 32 | |
Total liabilities | 32,669 | |
Net Assets | $ 1,586,218 | |
Net Assets consist of: | ||
Paid in capital | $ 1,567,255 | |
Undistributed net investment income | 495 | |
Accumulated undistributed net realized gain (loss) on investments | 2,275 | |
Net unrealized appreciation (depreciation) on investments | 16,193 | |
Net Assets | $ 1,586,218 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | August 31, 2007 (Unaudited) | |
Calculation of Maximum Offering Price Class A: | $ 12.06 | |
Maximum offering price per share (100/96.00 of $12.06) | $ 12.56 | |
Class T: | $ 12.08 | |
Maximum offering price per share (100/96.00 of $12.08) | $ 12.58 | |
Class B: | $ 12.05 | |
Class C: | $ 12.05 | |
California Municipal Income: | $ 12.05 | |
Institutional Class: | $ 12.07 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Amounts in thousands | Six months ended August 31, 2007 (Unaudited) | |
Investment Income | ||
Interest | $ 36,706 | |
Expenses | ||
Management fee | $ 2,996 | |
Transfer agent fees | 563 | |
Distribution fees | 92 | |
Accounting fees and expenses | 153 | |
Custodian fees and expenses | 12 | |
Independent trustees' compensation | 3 | |
Registration fees | 62 | |
Audit | 28 | |
Legal | 6 | |
Miscellaneous | 9 | |
Total expenses before reductions | 3,924 | |
Expense reductions | (298) | 3,626 |
Net investment income | 33,080 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 5,053 | |
Futures contracts | 76 | |
Total net realized gain (loss) | 5,129 | |
Change in net unrealized appreciation (depreciation) on: Investment securities | (48,220) | |
Swap agreements | 360 | |
Total change in net unrealized appreciation (depreciation) | (47,860) | |
Net gain (loss) | (42,731) | |
Net increase (decrease) in net assets resulting from operations | $ (9,651) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
Amounts in thousands | Six months ended | Year ended |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income | $ 33,080 | $ 64,183 |
Net realized gain (loss) | 5,129 | 13,028 |
Change in net unrealized appreciation (depreciation) | (47,860) | (7,105) |
Net increase (decrease) in net assets resulting | (9,651) | 70,106 |
Distributions to shareholders from net investment income | (33,064) | (64,808) |
Distributions to shareholders from net realized gain | (4,440) | (12,368) |
Total distributions | (37,504) | (77,176) |
Share transactions - net increase (decrease) | (18,299) | 24,916 |
Redemption fees | 6 | 8 |
Total increase (decrease) in net assets | (65,448) | 17,854 |
Net Assets | ||
Beginning of period | 1,651,666 | 1,633,812 |
End of period (including undistributed net investment income of $495 and $521, respectively) | $ 1,586,218 | $ 1,651,666 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
Six months ended | Years ended February 28, | |||||
(Unaudited) | 2007 | 2006 | 2005 | 2004 H | 2003 F | |
Selected Per-Share Data | ||||||
Net asset value, beginning of period | $ 12.41 | $ 12.46 | $ 12.56 | $ 12.84 | $ 12.76 | $ 12.60 |
Income from Investment Operations | ||||||
Net investment income E | .232 | .478 | .490 | .505 | .521 | .303 |
Net realized and unrealized gain (loss) | (.317) | .050 | (.025) | (.149) | .248 | .212 |
Total from investment operations | (.085) | .528 | .465 | .356 | .769 | .515 |
Distributions from net investment income | (.232) | (.483) | (.490) | (.501) | (.517) | (.297) |
Distributions from net realized gain | (.033) | (.095) | (.075) | (.135) | (.172) | (.058) |
Total distributions | (.265) | (.578) | (.565) | (.636) | (.689) | (.355) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, | $ 12.06 | $ 12.41 | $ 12.46 | $ 12.56 | $ 12.84 | $ 12.76 |
Total Return B, C, D | (.69)% | 4.36% | 3.78% | 2.92% | 6.25% | 4.13% |
Ratios to Average Net Assets G | ||||||
Expenses before reductions | .72% A | .64% | .65% | .66% | .65% | .66% A |
Expenses net of fee waivers, if any | .72% A | .64% | .65% | .66% | .65% | .66% A |
Expenses net of all reductions | .68% A | .62% | .62% | .65% | .65% | .65% A |
Net investment income | 3.78% A | 3.88% | 3.93% | 4.04% | 4.12% | 4.18% A |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $ 14 | $ 13 | $ 11 | $ 7 | $ 6 | $ 3 |
Portfolio turnover rate | 38% A | 23% | 19% | 15% | 18% | 18% |
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F For the period August 1, 2002 (commencement of sale of shares) to February 28, 2003.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H For the year ended February 29.
I Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
Six months ended | Years ended February 28, | |||||
(Unaudited) | 2007 | 2006 | 2005 | 2004 H | 2003 F | |
Selected Per-Share Data | ||||||
Net asset value, beginning of period | $ 12.43 | $ 12.48 | $ 12.58 | $ 12.86 | $ 12.79 | $ 12.60 |
Income from Investment Operations | ||||||
Net investment income E | .231 | .466 | .477 | .492 | .508 | .296 |
Net realized and unrealized gain (loss) | (.318) | .048 | (.027) | (.150) | .237 | .241 |
Total from investment operations | (.087) | .514 | .450 | .342 | .745 | .537 |
Distributions from net investment income | (.230) | (.469) | (.475) | (.487) | (.503) | (.289) |
Distributions from net realized gain | (.033) | (.095) | (.075) | (.135) | (.172) | (.058) |
Total distributions | (.263) | (.564) | (.550) | (.622) | (.675) | (.347) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, | $ 12.08 | $ 12.43 | $ 12.48 | $ 12.58 | $ 12.86 | $ 12.79 |
Total Return B, C, D | (.70)% | 4.24% | 3.66% | 2.80% | 6.04% | 4.31% |
Ratios to Average Net Assets G | ||||||
Expenses before reductions | .74% A | .75% | .77% | .77% | .76% | .77% A |
Expenses net of fee waivers, if any | .74% A | .75% | .77% | .77% | .76% | .77% A |
Expenses net of all reductions | .70% A | .72% | .73% | .76% | .76% | .76% A |
Net investment income | 3.76% A | 3.77% | 3.81% | 3.93% | 4.01% | 4.07% A |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $ 5 | $ 5 | $ 4 | $ 3 | $ 4 | $ 1 |
Portfolio turnover rate | 38% A | 23% | 19% | 15% | 18% | 18% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F For the period August 1, 2002 (commencement of sale of shares) to February 28, 2003.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H For the year ended February 29.
I Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
Six months ended | Years ended February 28, | |||||
(Unaudited) | 2007 | 2006 | 2005 | 2004 H | 2003 F | |
Selected Per-Share Data | ||||||
Net asset value, beginning of period | $ 12.40 | $ 12.45 | $ 12.55 | $ 12.84 | $ 12.76 | $ 12.60 |
Income from Investment Operations | ||||||
Net investment income E | .190 | .383 | .394 | .409 | .426 | .247 |
Net realized and unrealized gain (loss) | (.317) | .049 | (.026) | (.159) | .248 | .210 |
Total from investment operations | (.127) | .432 | .368 | .250 | .674 | .457 |
Distributions from net investment income | (.190) | (.387) | (.393) | (.405) | (.422) | (.239) |
Distributions from net realized gain | (.033) | (.095) | (.075) | (.135) | (.172) | (.058) |
Total distributions | (.223) | (.482) | (.468) | (.540) | (.594) | (.297) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, | $ 12.05 | $ 12.40 | $ 12.45 | $ 12.55 | $ 12.84 | $ 12.76 |
Total Return B, C, D | (1.03)% | 3.57% | 2.99% | 2.06% | 5.46% | 3.66% |
Ratios to Average Net Assets G | ||||||
Expenses before reductions | 1.40% A | 1.41% | 1.42% | 1.42% | 1.41% | 1.42% A |
Expenses net of fee waivers, if any | 1.40% A | 1.41% | 1.42% | 1.42% | 1.41% | 1.42% A |
Expenses net of all reductions | 1.37% A | 1.39% | 1.39% | 1.41% | 1.40% | 1.42% A |
Net investment income | 3.10% A | 3.11% | 3.15% | 3.28% | 3.37% | 3.42% A |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $ 5 | $ 5 | $ 5 | $ 5 | $ 5 | $ 4 |
Portfolio turnover rate | 38% A | 23% | 19% | 15% | 18% | 18% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F For the period August 1, 2002 (commencement of sale of shares) to February 28, 2003.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H For the year ended February 29.
I Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
Six months ended | Years ended February 28, | |||||
(Unaudited) | 2007 | 2006 | 2005 | 2004 H | 2003 F | |
Selected Per-Share Data | ||||||
Net asset value, beginning of period | $ 12.40 | $ 12.44 | $ 12.55 | $ 12.83 | $ 12.75 | $ 12.60 |
Income from Investment Operations | ||||||
Net investment income E | .184 | .371 | .382 | .397 | .411 | .239 |
Net realized and unrealized gain (loss) | (.317) | .061 | (.035) | (.149) | .248 | .200 |
Total from investment operations | (.133) | .432 | .347 | .248 | .659 | .439 |
Distributions from net investment income | (.184) | (.377) | (.382) | (.393) | (.407) | (.231) |
Distributions from net realized gain | (.033) | (.095) | (.075) | (.135) | (.172) | (.058) |
Total distributions | (.217) | (.472) | (.457) | (.528) | (.579) | (.289) |
Redemption fees added to paid in capital E, I | - | - | - | - | - | - |
Net asset value, | $ 12.05 | $ 12.40 | $ 12.44 | $ 12.55 | $ 12.83 | $ 12.75 |
Total Return B, C, D | (1.08)% | 3.56% | 2.81% | 2.04% | 5.34% | 3.52% |
Ratios to Average Net Assets G | ||||||
Expenses before reductions | 1.50% A | 1.50% | 1.52% | 1.52% | 1.52% | 1.54% A |
Expenses net of fee waivers, if any | 1.50% A | 1.50% | 1.52% | 1.52% | 1.52% | 1.54% A |
Expenses net of all reductions | 1.46% A | 1.48% | 1.49% | 1.51% | 1.51% | 1.53% A |
Net investment income | 3.00% A | 3.02% | 3.06% | 3.18% | 3.25% | 3.30% A |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $ 9 | $ 10 | $ 10 | $ 11 | $ 12 | $ 7 |
Portfolio turnover rate | 38% A | 23% | 19% | 15% | 18% | 18% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F For the period August 1, 2002 (commencement of sale of shares) to February 28, 2003.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H For the year ended February 29.
I Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - California Municipal Income
Six months ended | Years ended February 28, | |||||
(Unaudited) | 2007 | 2006 | 2005 | 2004 F | 2003 | |
Selected Per-Share Data | ||||||
Net asset value, beginning of period | $ 12.40 | $ 12.45 | $ 12.55 | $ 12.83 | $ 12.75 | $ 12.55 |
Income from Investment Operations | ||||||
Net investment income D | .247 | .499 | .512 | .527 | .544 | .546 |
Net realized and unrealized gain (loss) | (.317) | .050 | (.025) | (.149) | .247 | .265 |
Total from investment operations | (.070) | .549 | .487 | .378 | .791 | .811 |
Distributions from net investment income | (.247) | (.504) | (.512) | (.523) | (.539) | (.541) |
Distributions from net realized gain | (.033) | (.095) | (.075) | (.135) | (.172) | (.070) |
Total distributions | (.280) | (.599) | (.587) | (.658) | (.711) | (.611) |
Redemption fees added to paid in capital D, G | - | - | - | - | - | - |
Net asset value, | $ 12.05 | $ 12.40 | $ 12.45 | $ 12.55 | $ 12.83 | $ 12.75 |
Total Return B, C | (.57)% | 4.55% | 3.97% | 3.11% | 6.44% | 6.64% |
Ratios to Average Net Assets E | ||||||
Expenses before reductions | .47% A | .47% | .48% | .48% | .48% | .49% |
Expenses net of fee waivers, if any | .47% A | .47% | .48% | .48% | .48% | .48% |
Expenses net of all reductions | .43% A | .44% | .45% | .47% | .48% | .47% |
Net investment income | 4.03% A | 4.05% | 4.10% | 4.22% | 4.29% | 4.34% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $ 1,545 | $ 1,611 | $ 1,601 | $ 1,506 | $ 1,550 | $ 1,683 |
Portfolio turnover rate | 38% A | 23% | 19% | 15% | 18% | 18% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F For the year ended February 29.
G Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
Six months ended | Years ended February 28, | |||||
(Unaudited) | 2007 | 2006 | 2005 | 2004 G | 2003 E | |
Selected Per-Share Data | ||||||
Net asset value, beginning of period | $ 12.42 | $ 12.47 | $ 12.57 | $ 12.85 | $ 12.76 | $ 12.60 |
Income from Investment Operations | ||||||
Net investment income D | .245 | .493 | .509 | .529 | .546 | .316 |
Net realized and unrealized gain (loss) | (.318) | .049 | (.025) | (.151) | .254 | .211 |
Total from investment operations | (.073) | .542 | .484 | .378 | .800 | .527 |
Distributions from net investment income | (.244) | (.497) | (.509) | (.523) | (.538) | (.309) |
Distributions from net realized gain | (.033) | (.095) | (.075) | (.135) | (.172) | (.058) |
Total distributions | (.277) | (.592) | (.584) | (.658) | (.710) | (.367) |
Redemption fees added to paid in capital D, H | - | - | - | - | - | - |
Net asset value, | $ 12.07 | $ 12.42 | $ 12.47 | $ 12.57 | $ 12.85 | $ 12.76 |
Total Return B, C | (.59)% | 4.48% | 3.94% | 3.10% | 6.51% | 4.23% |
Ratios to Average Net Assets F | ||||||
Expenses before reductions | .51% A | .53% | .50% | .47% | .49% | .50% A |
Expenses net of fee waivers, if any | .51% A | .53% | .50% | .47% | .49% | .50% A |
Expenses net of all reductions | .47% A | .50% | .46% | .47% | .49% | .49% A |
Net investment income | 3.99% A | 3.99% | 4.08% | 4.23% | 4.28% | 4.34% A |
Supplemental Data | ||||||
Net assets, | $ 8,362 | $ 7,882 | $ 2,143 | $ 1,057 | $ 264 | $ 1,499 |
Portfolio turnover rate | 38% A | 23% | 19% | 15% | 18% | 18% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E For the period August 1, 2002 (commencement of sale of shares) to February 28, 2003.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G For the year ended February 29.
H Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended August 31, 2007 (Unaudited)
(Amounts in thousands except ratios)
1. Organization.
Fidelity California Municipal Income Fund (the Fund) is a non-diversified fund of Fidelity California Municipal Trust (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class B, Class C, California Municipal Income, and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class. The Fund may be affected by economic and political developments in the state of California.
2. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued and net asset value per share is calculated (NAV calculation) as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments. Debt securities, including restricted securities, for which quotes are readily available, are valued by independent pricing services or by dealers who make markets in such securities. Pricing services consider yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices.
When current market prices or quotations are not readily available or do not accurately reflect fair value, valuations may be determined in accordance with procedures adopted by the Board of Trustees. The frequency of when fair value pricing is used is unpredictable. The value of securities used for NAV calculation under fair value pricing may differ from published prices for the same securities. Investments in open-end mutual funds are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
2. Significant Accounting Policies - continued
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV for processing shareholder transactions includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Interest income is accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. Each Fund adopted the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48), on June 29, 2007. FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements. Each of the tax years in the three year period ended June 29, 2007, remains subject to examination by the Internal Revenue Service.
Dividends are declared daily and paid monthly from net investment income. Distributions from realized gains, if any, are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to futures transactions, swap agreements, market discount, deferred trustees compensation and losses deferred due to wash sales futures transactions.
Semiannual Report
2. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The Fund purchases municipal securities whose interest, in the opinion of the issuer, is free from federal income tax. There is no assurance that the Internal Revenue Service (IRS) will agree with this opinion. In the event the IRS determines that the issuer does not comply with relevant tax requirements, interest payments from a security could become federally taxable, possibly retroactively to the date the security was issued.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 36,250 | |
Unrealized depreciation | (18,752) | |
Net unrealized appreciation (depreciation) | $ 17,498 | |
Cost for federal income tax purposes | $ 1,581,740 |
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 30 days are subject to a redemption fee equal to 50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by Fidelity Management & Research Company (FMR), are retained by the Fund and accounted for as an addition to paid in capital.
New Accounting Pronouncement. In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact the adoption of SFAS 157 will have on the Fund's financial statement disclosures.
3. Operating Policies.
Delayed Delivery Transactions and When-Issued Securities. The Fund may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. During the time a delayed delivery sell is outstanding, the contract is marked-to-market daily and equivalent deliverable securities are held for the transaction. The value of the securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. The Fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Operating Policies - continued
Delayed Delivery Transactions and When-Issued Securities - continued
amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Futures Contracts. The Fund may use futures contracts to manage its exposure to the bond market and to fluctuations in interest rates. Buying futures tends to increase a fund's exposure to the underlying instrument, while selling futures tends to decrease a fund's exposure to the underlying instrument or hedge other fund investments. Upon entering into a futures contract, a fund is required to deposit with a clearing broker, no later than the following business day, an amount ("initial margin") equal to a certain percentage of the face value of the contract. The initial margin may be in the form of cash or securities and is transferred to a segregated account on settlement date. Subsequent payments ("variation margin") are made or received by a fund depending on the daily fluctuations in the value of the futures contract and are accounted for as unrealized gains or losses. Realized gains (losses) are recorded upon the expiration or closing of the futures contract. Securities deposited to meet margin requirements are identified in the Schedule of Investments. Losses may arise from changes in the value of the underlying instruments or if the counterparties do not perform under the contract's terms. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $322,823 and $314,824, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .25% of the Fund's average net assets and a group fee rate that averaged ..12% during the period. The group fee rate is based upon the average net assets of all the mutual funds
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .36% of the Fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:
Distribution | Service | Paid to | Retained | |
Class A | -% | .25% | $ 16 | $ 2 |
Class T | -% | .25% | 6 | - |
Class B | .65% | .25% | 23 | 17 |
Class C | .75% | .25% | 47 | 9 |
$ 92 | $ 28 |
On January 18, 2007, the Board of Trustees approved an increase on Class A's service fee from .15% to .25%, effective April 1, 2007.
Sales Load. FDC receives a front-end sales charge of up to 4.00% for selling Class A shares and Class T shares (4.75% for Class A and 3.50% for Class T prior to April 1, 2007) some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, ..75% to .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
Retained | |
Class A | $ 10 |
Class T | 1 |
Class B* | 5 |
Class C* | 1 |
$ 17 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent and Accounting Fees. Citibank, N.A. (Citibank) is the custodian, transfer agent, and shareholder servicing agent for the Fund's Class A, Class T, Class B, Class C, California Municipal Income and Institutional Class shares. Citibank has entered into a sub-arrangement with Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, with respect to all classes of the Fund, except for California Municipal Income, to perform the transfer, dividend disbursing, and shareholder servicing agent functions. Citibank has also entered into a sub-arrangement with Fidelity Service Company, Inc. (FSC), an affiliate of FMR, with respect to California Municipal Income, to perform the transfer, dividend disbursing, and shareholder servicing agent functions. FIIOC and FSC receive account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. All fees are paid to FIIOC by Citibank, which is reimbursed by each class for such payments. FIIOC and FSC pay for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, each class paid the following transfer agent fees:
Amount | % of | |
Class A | $ 6 | .09 |
Class T | 2 | .09 |
Class B | 3 | .11 |
Class C | 5 | .11 |
California Municipal Income | 543 | .07 |
Institutional Class | 4 | .11 |
$ 563 |
* Annualized
Citibank also has a sub-arrangement with FSC to maintain the Fund's accounting records. The fee is based on the level of average net assets for the month.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro rata portion of the line of credit, which amounted to $2 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Semiannual Report
7. Expense Reductions.
Through arrangements with the Fund's custodian and each class' transfer agent, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody and accounting expenses by $13 and $142, respectively. During the period, credits reduced each class' transfer agent expense as noted in the table below.
Transfer Agent | ||
Class A | $ 1 | |
Class C | 1 | |
California Municipal Income | 137 | |
Institutional Class | 1 | |
$ 140 |
8. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
In September 2006, FIIOC, the Fund's transfer agent, notified the Fund that the Fund's books and records did not reflect a conversion of certain Class B to Class A shares upon their conversion date. In March 2007, FIIOC converted the relevant Class B shares to Class A shares and recorded the conversion in the books and records of the Fund which did not result in a material impact to the Fund's reported net assets or results of operations in the accompanying financial statements. FIIOC has remediated affected shareholders and reimbursed the Fund for all related audit and legal expenses.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income | ||
Class A | $ 259 | $ 473 |
Class T | 89 | 176 |
Class B | 80 | 165 |
Class C | 143 | 303 |
California Municipal Income | 32,333 | 63,502 |
Institutional Class | 160 | 189 |
Total | $ 33,064 | $ 64,808 |
From net realized gain | ||
Class A | $ 35 | $ 93 |
Class T | 13 | 35 |
Class B | 14 | 41 |
Class C | 26 | 75 |
California Municipal Income | 4,330 | 12,083 |
Institutional Class | 22 | 41 |
Total | $ 4,440 | $ 12,368 |
10. Share Transactions.
Transactions for each class of shares were as follows:
Shares | Dollars | |||
Six months ended | Year ended | Six months ended | Year ended | |
Class A | ||||
Shares sold | 335 | 487 | $ 4,104 | $ 6,004 |
Reinvestment of distributions | 14 | 28 | 174 | 348 |
Shares redeemed | (212) | (354) | (2,589) | (4,369) |
Net increase (decrease) | 137 | 161 | $ 1,689 | $ 1,983 |
Class T | ||||
Shares sold | 12 | 139 | $ 153 | $ 1,696 |
Reinvestment of distributions | 7 | 14 | 81 | 178 |
Shares redeemed | (44) | (79) | (534) | (971) |
Net increase (decrease) | (25) | 74 | $ (300) | $ 903 |
Semiannual Report
10. Share Transactions - continued
Shares | Dollars | |||
Six months ended | Year ended | Six months ended | Year ended | |
Class B | ||||
Shares sold | 23 | 35 | $ 277 | $ 435 |
Reinvestment of distributions | 3 | 6 | 35 | 80 |
Shares redeemed | (32) | (52) | (388) | (644) |
Net increase (decrease) | (6) | (11) | $ (76) | $ (129) |
Class C | ||||
Shares sold | 91 | 252 | $ 1,117 | $ 3,089 |
Reinvestment of distributions | 8 | 20 | 95 | 246 |
Shares redeemed | (146) | (277) | (1,776) | (3,408) |
Net increase (decrease) | (47) | (5) | $ (564) | $ (73) |
California Municipal Income | ||||
Shares sold | 14,692 | 22,440 | $ 179,061 | $ 276,678 |
Reinvestment of distributions | 2,048 | 4,248 | 24,964 | 52,369 |
Shares redeemed | (18,441) | (25,430) | (223,770) | (312,547) |
Net increase (decrease) | (1,701) | 1,258 | $ (19,745) | $ 16,500 |
Institutional Class | ||||
Shares sold | 147 | 671 | $ 1,773 | $ 8,296 |
Reinvestment of distributions | 5 | 9 | 67 | 112 |
Shares redeemed | (94) | (217) | (1,142) | (2,676) |
Net increase (decrease) | 58 | 463 | $ 698 | $ 5,732 |
Semiannual Report
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity California Municipal Income Fund
Each year, typically in June, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract and sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information throughout the year.
The Board meets regularly each month except August and takes into account throughout the year matters bearing on Advisory Contracts. The Board, acting directly and through its separate committees, considers at each of its meetings factors that are relevant to the annual renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. At the time of the renewal, the Board had 12 standing committees, each composed of Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. Each committee has adopted a written charter outlining the structure and purposes of the committee. One such committee, the Fixed-Income Contract Committee, meets periodically as needed throughout the year to consider matters specifically related to the annual renewal of Advisory Contracts. The committee requests and receives information on, and makes recommendations to the Independent Trustees concerning, the approval and annual review of the Advisory Contracts.
At its June 2007 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew the Advisory Contracts for the fund. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the management fee and total expenses of the fund; (iii) the total costs of the services to be provided by and the profits to be realized by the investment adviser and its affiliates from the relationship with the fund; (iv) the extent to which economies of scale would be realized as the fund grows; and (v) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders. The Board also approved amendments to the fund's agreements with foreign sub-advisers to clarify that each sub-adviser provides services as an independent contractor.
In determining whether to renew the Advisory Contracts for the fund, the Board ultimately reached a determination, with the assistance of fund counsel and Independent Trustees' counsel, that the renewal of the Advisory Contracts and the compensation to be received by Fidelity under the management contract is consistent with Fidelity's fiduciary duty under applicable law. In addition to evaluating the specific factors noted above, the Board, in reaching its determination, is aware that shareholders in the fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by competitors to Fidelity, and that the fund's shareholders, with the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, managed by Fidelity.
Semiannual Report
Nature, Extent, and Quality of Services Provided. The Board considered staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the background of the fund's portfolio manager and the fund's investment objective and discipline. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives.
Resources Dedicated to Investment Management and Support Services. The Board reviewed the size, education, and experience of the Investment Advisers' investment staff, their use of technology, and the Investment Advisers' approach to recruiting, training, and retaining portfolio managers and other research, advisory, and management personnel. The Board considered Fidelity's extensive global research capabilities that enable the Investment Advisers to aggregate data from various sources in an effort to produce positive investment results. The Board noted that Fidelity's analysts have access to a variety of technological tools that enable them to perform both fundamental and quantitative analysis and to specialize in various disciplines. The Board also considered that Fidelity's portfolio managers and analysts have access to daily portfolio attribution that allows for monitoring of a fund's portfolio, as well as an electronic communication system that provides immediate real-time access to research concerning issuers and credit enhancers. In addition, the Board considered the trading resources that are an integrated part of the fixed-income portfolio management investment process.
Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, distribution, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency and pricing and bookkeeping services for the fund; (ii) the nature and extent of the Investment Advisers' supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures.
The Board noted that the growth of fund assets across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through phone representatives and over the Internet, and investor education materials and asset allocation tools.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing for a large variety of mutual fund investor services. For example, fund shareholders are offered the privilege of exchanging shares of the fund for shares of other Fidelity funds, as set forth in the fund's prospectus, without paying a sales charge. The Board noted that, since the last Advisory Contract renewals in June 2006, Fidelity has taken a number of actions that benefited particular funds, including (i) dedicating additional resources to investment research and to restructure the investment research teams; (ii) contractually agreeing to reduce the management fee on Fidelity Advisor Floating Rate High Income Fund; (iii) contractually agreeing to reduce the management fees on Fidelity's California, Massachusetts, New Jersey, and New York AMT Tax-Free Money Market Funds, launching new Institutional Classes and Service Classes of these funds, and contractually agreeing to impose expense limitations on these funds; (iv) eliminating the exchange fee on the Fidelity Select Portfolios and reducing the pricing and bookkeeping fee rates for these funds; (v) reducing the maximum transfer agency fee rates on high income funds and certain equity funds; (vi) proposing amended management contracts that, if approved by shareholders, will add a performance adjustment component to the management fees paid by 18 Fidelity Advisor equity funds; (vii) contractually agreeing to reduce fees for Ultra-Short Central Fund and the money market Central Funds; (viii) waiving the Fidelity Advisor funds' contingent deferred sales charge on certain redemptions made through systematic withdrawal programs; and (ix) amending the management contracts for equity and fixed-income funds whose management contracts incorporate a "group fee" structure by adding four new fee "breakpoints" to the group fee rate schedules.
Investment Performance. The Board considered whether the fund has operated within its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed the fund's absolute investment performance for each class, as well as the fund's relative investment performance for each class measured against (i) a broad-based securities market index, and (ii) a peer group of mutual funds deemed appropriate by the Board over multiple periods. The following charts considered by the Board show, over the one-, three-, and five-year periods ended December 31, 2006, as available, the cumulative total returns of Fidelity California Municipal Income (retail class) and Class C, the cumulative total returns of a broad-based securities market index ("benchmark"), and a range of cumulative total returns of a peer group of mutual funds identified by Lipper Inc. as having an investment objective similar to that of the fund. The returns of Fidelity California Municipal Income (retail class) and Class C show the performance of the highest and lowest performing classes, respectively (based on three-year performance). The box within each chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten numbers noted below each chart correspond to the percentile box and represent the percentage of funds in the peer group whose performance was equal to or lower than that of the class indicated.
Semiannual Report
Fidelity California Municipal Income Fund
The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of Fidelity California Municipal Income (retail class) was in the second quartile for all the periods shown. The Board also stated that the relative investment performance of the fund was lower than its benchmark for all the periods shown. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board discussed with FMR actions to be taken by FMR to improve the fund's below-benchmark performance.
Based on its review, and giving particular weight to the nature and quality of the resources dedicated by the Investment Advisers to maintain and improve relative performance, the Board concluded that the nature, extent, and quality of the services provided to the fund will benefit the fund's shareholders, particularly in light of the Board's view that the fund's shareholders benefit from investing in a fund that is part of a large family of funds offering a variety of investment disciplines and services.
Competitiveness of Management Fee and Total Fund Expenses. The Board considered the fund's management fee and total expenses compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management fee and total expense comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
The Board considered two proprietary management fee comparisons for the 12-month periods shown in the chart below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group" and, for the reasons explained above, is broader than the Lipper peer group used by the Board for performance comparisons. The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors, in terms of gross management fees before expense reimbursements or caps. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than the fund's. For example, a TMG % of 8% means that 92% of the funds in the Total Mapped Group had higher management fees than the fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which the fund's management fee ranked, is also included in the chart and considered by the Board.
Fidelity California Municipal Income Fund
The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2006. Based on its review, the Board concluded that the fund's management fee was fair and reasonable in light of the services that the fund receives and the other factors considered.
Semiannual Report
In its review of each class's total expenses, the Board considered the fund's management fee as well as other fund or class expenses, as applicable, such as transfer agent fees, pricing and bookkeeping fees, fund-paid 12b-1 fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses. As part of its review, the Board also considered current and historical total expenses of each class of the fund compared to competitive fund median expenses. Each class of the fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.
The Board noted that each class's total expenses ranked below its competitive median for 2006.
In its review of total expenses, the Board also considered Fidelity fee structures and other information on clients that FMR and its affiliates service in other competitive markets, such as other mutual funds advised or subadvised by FMR or its affiliates, pension plan clients, and other institutional clients.
Based on its review, the Board concluded that the total expenses of each class of the fund were reasonable in light of the services that the fund and its shareholders receive and the other factors considered.
Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing the fund and its shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.
On an annual basis, FMR presents to the Board Fidelity's profitability for the fund. Fidelity calculates the profitability for each fund, as well as aggregate profitability for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the audited books and records of Fidelity. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.
PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of the results of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures surrounding the mathematical accuracy of fund profitability and its conformity to allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board believes that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
The Board has also reviewed Fidelity's non-fund businesses and any fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the fund's business.
The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund and determined that the amount of profit is a fair entrepreneurial profit for the management of the fund.
Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which the fund will benefit from economies of scale through increased services to the fund, through waivers or reimbursements, or through fee or expense reductions, including reductions that occur through operation of the transfer agent agreement. The transfer agent fee varies in part based on the number of accounts in the fund. If the number of accounts decreases or the average account size increases, the overall transfer agent fee rate decreases.
The Board recognized that the fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total fund assets under FMR's management increase, and for higher group fee rates as total fund assets under FMR's management decrease. FMR determines the group fee rates based on a tiered asset "breakpoint" schedule. In connection with the renewal of the fund's management contract, the Board approved amendments to the fund's management contract that added four new fee breakpoints to the group fee rate schedule for assets under FMR's management above $1,386 billion. The Board considered that the group fee rate declines under both the present and amended schedules, but that under the amended schedule, the group fee rate declines faster as assets under FMR's management exceed $1,386 billion. The Board considered that the group fee is designed to deliver the benefits of economies of scale to fund shareholders when total fund assets increase, even if assets of any particular fund are unchanged or have declined, because some portion of Fidelity's costs are attributable to services provided to all Fidelity funds, and all funds benefit if those costs can be allocated among more assets. The Board concluded that, given the group fee structure, fund shareholders will achieve a certain level of economies of scale as assets under FMR's management increase at the fund complex level, regardless of whether Fidelity achieves any such economies of scale.
The Board further concluded that any potential economies of scale are being shared between fund shareholders and Fidelity in an appropriate manner.
Semiannual Report
Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on several topics, including (i) Fidelity's fund profitability methodology, profitability by investment discipline, and profitability trends within certain funds; (ii) Fidelity's compensation structure relative to competitors and its effect on profitability; (iii) funds and accounts managed by Fidelity other than the Fidelity funds, including fee arrangements; (iv) the total expenses of certain funds and classes relative to competitors; (v) fund performance trends; (vi) fall-out benefits received by certain Fidelity affiliates; and (vii) Fidelity's fee structures.
Based on its evaluation of all of the conclusions noted above, and after considering all material factors, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that the fund's Advisory Contracts should be renewed.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
Fidelity Investments
Money Management, Inc.
Fidelity Research & Analysis Company
Fidelity International Investment Advisors
Fidelity International Investment Advisors
(U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Citibank, N.A.
New York, NY
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
ASCMI-USAN-1007
1.790937.104
(Fidelity Investment logo)(registered trademark)
Fidelity®
California Short-Intermediate Tax-Free Bond Fund
Semiannual Report
August 31, 2007
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | Ned Johnson's message to shareholders. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, | |
Notes | Notes to the financial statements. | |
Board Approval of Investment Advisory Contracts and Management Fees | ||
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Many stock and bond markets around the world have been unsettled of late; however, volatility can often lead to opportunity for patient investors. Financial markets are always unpredictable, but there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including redemption fees, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (March 1, 2007 to August 31, 2007).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. 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 the 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 transaction costs. Therefore, the second line of 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.
Beginning | Ending | Expenses Paid | |
Actual | $ 1,000.00 | $ 1,012.10 | $ 1.77 |
Hypothetical (5% return per year before expenses) | $ 1,000.00 | $ 1,023.38 | $ 1.78 |
* Expenses are equal to the Fund's annualized expense ratio of .35%; multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).
Semiannual Report
Investment Changes
Top Five Sectors as of August 31, 2007 | ||
% of fund's | % of fund's net assets | |
General Obligations | 34.5 | 27.0 |
Escrowed/Pre-Refunded | 15.9 | 20.3 |
Special Tax | 13.9 | 17.0 |
Electric Utilities | 8.9 | 6.0 |
Health Care | 8.1 | 8.0 |
Weighted Average Maturity as of August 31, 2007 | ||
6 months ago | ||
Years | 3.8 | 3.6 |
The weighted average maturity is based on the dollar-weighted average length of time until principal payments are expected or until securities reach maturity. Effective May 2007, the calculation was modified, taking into account any maturity shortening feature such as a call, refunding or redemption provision. The prior period figure reflects this change. |
Duration as of August 31, 2007 | ||
6 months ago | ||
Years | 3.4 | 3.3 |
Duration shows how much a bond fund's price fluctuates with changes in comparable interest rates. If rates rise 1%, for example, a fund with a five-year duration is likely to lose about 5% of its value. Other factors also can influence a bond fund's performance and share price. Accordingly, a bond fund's actual performance may differ from this example. |
Quality Diversification (% of fund's net assets) | |||||||
As of August 31, 2007 | As of February 28, 2007 | ||||||
![]() | AAA 55.4% | ![]() | AAA 49.1% | ||||
![]() | AA,A 33.3% | ![]() | AA,A 38.3% | ||||
![]() | BBB 5.9% | ![]() | BBB 6.5% | ||||
![]() | BB and Below 0.2% | ![]() | BB and Below 0.3% | ||||
![]() | Not Rated 1.6% | ![]() | Not Rated 1.0% | ||||
![]() | Short-Term | ![]() | Short-Term |
We have used ratings from Moody's® Investors Services, Inc. Where Moody's ratings are not available, we have used S&P® ratings. |
Semiannual Report
Investments August 31, 2007 (Unaudited)
Showing Percentage of Net Assets
Municipal Bonds - 96.4% | |||
Principal Amount | Value | ||
California - 90.1% | |||
ABAG Fin. Auth. for Nonprofit Corp. Rev. (Hamlin School Proj.) 4.375% 8/1/13 | $ 220,000 | $ 210,971 | |
Alameda County Ctfs. of Prtn. Series A, 5.375% 12/1/09 (MBIA Insured) | 170,000 | 176,129 | |
Alameda Unified School District Gen. Oblig. 5.5% 7/1/13 (FSA Insured) | 25,000 | 27,350 | |
Anaheim Union High School District Series A, 5% 8/1/22 (Pre-Refunded to 8/1/12 @ 100) (b) | 155,000 | 164,745 | |
Bay Area Infrastructure Fing. Auth. 5% 8/1/13 (XL Cap. Assurance, Inc. Insured) | 1,000,000 | 1,037,140 | |
Bay Area Toll Auth. California Toll Bridge Rev. (San Francisco Bay Area Proj.) Series 2001 D: | |||
5% 4/1/08 | 100,000 | 100,783 | |
5% 4/1/10 | 170,000 | 175,666 | |
Berkeley Unified School District Gen. Oblig. Series I, 5% 8/1/08 (FSA Insured) | 15,000 | 15,192 | |
Big Bear Lake Wtr. Rev. 6% 4/1/11 (MBIA Insured) | 1,225,000 | 1,290,366 | |
California County Tobacco Securitization Agcy. Tobacco Settlement Asset-Backed: | |||
Series 2002 A, 5.875% 6/1/43 (Pre-Refunded to 6/1/12 @ 100) (b) | 165,000 | 180,533 | |
Series A, 5.875% 6/1/43 (Pre-Refunded to 6/1/12 @ 100) (b) | 125,000 | 136,768 | |
California Dept. of Trans. Rev. Series A: | |||
5% 2/1/11 (MBIA Insured) | 300,000 | 313,437 | |
5% 2/1/12 (FGIC Insured) | 100,000 | 105,528 | |
California Dept. of Wtr. Resources Pwr. Supply Rev.: | |||
Series 2002 A: | |||
5% 5/1/13 (FSA Insured) | 55,000 | 58,396 | |
5.5% 5/1/09 (MBIA Insured) | 50,000 | 51,511 | |
5.5% 5/1/11 (MBIA Insured) | 1,050,000 | 1,114,386 | |
5.5% 5/1/12 (MBIA Insured) | 45,000 | 48,373 | |
5.5% 5/1/16 (Pre-Refunded to 5/1/12 @ 101) (b) | 2,000,000 | 2,179,280 | |
6% 5/1/13 (MBIA Insured) | 100,000 | 110,185 | |
Series 2005 A, 5.5% 5/1/11 | 45,000 | 47,633 | |
Series A: | |||
5% 5/1/09 (MBIA Insured) | 75,000 | 76,670 | |
5.125% 5/1/18 (Pre-Refunded to 5/1/12 @ 101) (b) | 1,110,000 | 1,191,807 | |
5.25% 5/1/09 (MBIA Insured) | 255,000 | 261,691 | |
5.25% 5/1/10 (MBIA Insured) | 1,730,000 | 1,798,024 | |
5.25% 5/1/11 (FSA Insured) | 1,000,000 | 1,052,840 | |
5.25% 5/1/12 (FSA Insured) | 590,000 | 627,972 | |
Municipal Bonds - continued | |||
Principal Amount | Value | ||
California - continued | |||
California Dept. of Wtr. Resources Pwr. Supply Rev.: - continued | |||
Series A: | |||
5.25% 5/1/12 (MBIA Insured) | $ 115,000 | $ 122,401 | |
5.5% 5/1/10 | 220,000 | 229,691 | |
5.5% 5/1/13 (AMBAC Insured) | 390,000 | 422,343 | |
6% 5/1/13 | 450,000 | 492,804 | |
California Dept. of Wtr. Resources Rev. (Central Valley Proj.): | |||
Series J3, 7% 12/1/12 (Escrowed to Maturity) (b) | 70,000 | 80,940 | |
Series Q, 6% 12/1/09 | 40,000 | 41,930 | |
5.5% 12/1/08 | 90,000 | 92,082 | |
California Dept. of Wtr. Resources Wtr. Rev. Series W: | |||
5.5% 12/1/09 (AMBAC Insured) | 100,000 | 104,090 | |
5.5% 12/1/13 (FSA Insured) | 110,000 | 120,999 | |
California Econ. Recovery: | |||
Series 2004 A: | |||
5% 7/1/10 (MBIA Insured) | 250,000 | 259,098 | |
5% 7/1/11 (MBIA Insured) | 745,000 | 780,812 | |
5% 7/1/12 (MBIA Insured) | 585,000 | 618,807 | |
5.25% 7/1/12 | 1,215,000 | 1,295,749 | |
Series A: | |||
5% 7/1/09 | 690,000 | 707,098 | |
5% 7/1/15 | 825,000 | 878,856 | |
5% 7/1/15 (MBIA Insured) | 1,845,000 | 1,971,143 | |
5.25% 1/1/11 | 1,080,000 | 1,132,164 | |
5.25% 7/1/12 (FGIC Insured) | 215,000 | 229,779 | |
5.25% 7/1/13 | 555,000 | 596,947 | |
5.25% 7/1/13 (MBIA Insured) | 2,615,000 | 2,819,720 | |
California Edl. Facilities Auth. Rev. (College & Univ. Fing. Prog.) 5% 2/1/13 | 1,265,000 | 1,268,504 | |
California Gen. Oblig.: | |||
Series AR, 10% 10/1/08 | 40,000 | 42,527 | |
Series AT, 9.75% 2/1/09 | 10,000 | 10,823 | |
0% 4/1/11 | 15,000 | 13,017 | |
4% 8/1/13 | 1,000,000 | 1,008,350 | |
4.5% 2/1/09 | 135,000 | 136,683 | |
4.5% 9/1/11 (Pre-Refunded to 9/1/10 @ 100) (b) | 20,000 | 20,529 | |
4.75% 9/1/08 | 100,000 | 101,126 | |
5% 10/1/07 | 125,000 | 125,111 | |
5% 3/1/09 | 150,000 | 153,062 | |
5% 3/1/09 | 65,000 | 66,327 | |
5% 2/1/10 | 175,000 | 180,226 | |
Municipal Bonds - continued | |||
Principal Amount | Value | ||
California - continued | |||
California Gen. Oblig.: - continued | |||
5% 2/1/10 | $ 115,000 | $ 118,434 | |
5% 2/1/10 | 100,000 | 102,986 | |
5% 3/1/10 | 65,000 | 67,007 | |
5% 6/1/10 | 75,000 | 77,533 | |
5% 2/1/11 | 1,000,000 | 1,040,550 | |
5% 2/1/11 | 1,000,000 | 1,040,550 | |
5% 5/1/11 | 95,000 | 99,115 | |
5% 6/1/11 (MBIA Insured) | 60,000 | 62,825 | |
5% 9/1/11 | 2,085,000 | 2,183,078 | |
5% 2/1/12 | 260,000 | 272,753 | |
5% 2/1/12 | 120,000 | 125,886 | |
5% 2/1/12 | 60,000 | 62,943 | |
5% 3/1/12 | 1,425,000 | 1,496,150 | |
5% 4/1/12 | 125,000 | 131,345 | |
5% 10/1/12 | 2,000,000 | 2,111,600 | |
5% 2/1/13 | 55,000 | 58,086 | |
5% 2/1/13 | 125,000 | 132,013 | |
5% 3/1/13 | 875,000 | 924,796 | |
5% 6/1/13 | 1,000,000 | 1,058,700 | |
5% 10/1/13 | 50,000 | 52,767 | |
5% 8/1/14 | 1,000,000 | 1,064,130 | |
5.25% 10/1/12 | 110,000 | 117,396 | |
5.25% 3/1/13 (Pre-Refunded to 3/1/10 @ 101) (b) | 80,000 | 83,828 | |
5.25% 10/1/13 | 185,000 | 199,003 | |
5.25% 2/1/14 (FSA Insured) | 270,000 | 290,231 | |
5.25% 2/1/15 | 40,000 | 42,670 | |
5.25% 10/1/15 (Pre-Refunded to 10/1/10 @ 100) (b) | 75,000 | 78,656 | |
5.25% 6/1/18 (Pre-Refunded to 6/1/10 @ 100) (b) | 25,000 | 26,026 | |
5.25% 9/1/18 (Pre-Refunded to 9/1/10 @ 100) (b) | 35,000 | 36,612 | |
5.25% 12/1/24 (Pre-Refunded to 12/1/10 @ 100) (b) | 45,000 | 47,304 | |
5.5% 6/1/10 | 70,000 | 73,268 | |
5.5% 4/1/11 | 45,000 | 47,655 | |
5.75% 10/1/10 | 50,000 | 52,964 | |
5.75% 10/1/10 | 100,000 | 105,928 | |
5.75% 2/1/11 (FGIC Insured) | 20,000 | 21,339 | |
5.75% 10/1/11 | 170,000 | 182,923 | |
5.75% 11/1/11 | 100,000 | 107,744 | |
5.75% 3/1/27 (Pre-Refunded to 3/1/10 @ 101) (b) | 75,000 | 79,474 | |
6% 2/1/09 | 185,000 | 191,077 | |
Municipal Bonds - continued | |||
Principal Amount | Value | ||
California - continued | |||
California Gen. Oblig.: - continued | |||
6% 9/1/09 | $ 110,000 | $ 115,067 | |
6% 10/1/09 (FGIC Insured) | 40,000 | 41,875 | |
6.25% 9/1/09 | 85,000 | 89,319 | |
6.25% 9/1/12 | 465,000 | 504,558 | |
6.6% 2/1/09 (AMBAC Insured) | 210,000 | 218,786 | |
7% 2/1/09 | 35,000 | 36,625 | |
7% 10/1/09 | 10,000 | 10,634 | |
7.1% 3/1/08 | 10,000 | 10,168 | |
10% 9/1/09 | 85,000 | 94,899 | |
California Health Facilities Fing. Auth. Rev.: | |||
(Catholic Healthcare West Proj.) Series G, 5% 7/1/09 | 635,000 | 646,576 | |
(Cedars-Sinai Med. Ctr. Proj.): | |||
5% 11/15/09 | 100,000 | 102,033 | |
5% 11/15/14 | 50,000 | 52,080 | |
California Infrastructure & Econ. Dev. Bank Rev.: | |||
(Bay Area Toll Bridges Seismic Retrofit Prog.) 5% 7/1/11 (Escrowed to Maturity) (b) | 135,000 | 141,834 | |
(Worker's Compensation Relief Proj.) Series A, 5.25% 10/1/13 (AMBAC Insured) | 45,000 | 48,786 | |
Series A, 3.9%, tender 12/1/11 (a) | 1,500,000 | 1,512,195 | |
Series C, 3.9%, tender 12/1/11 (a) | 1,200,000 | 1,209,756 | |
4% 12/1/09 | 100,000 | 100,335 | |
4% 12/1/10 | 100,000 | 100,508 | |
5.5% 6/1/17 (Pre-Refunded to 6/1/10 @ 101) (b) | 80,000 | 84,738 | |
5.5% 6/1/22 (Pre-Refunded to 6/1/10 @ 101) (b) | 2,030,000 | 2,150,217 | |
California Pub. Works Board Lease Rev.: | |||
(Coalinga State Hosp. Proj.): | |||
Series A: | |||
5% 6/1/11 | 125,000 | 130,308 | |
5.25% 6/1/12 | 55,000 | 58,352 | |
5.25% 6/1/14 | 70,000 | 75,205 | |
5% 6/1/10 | 550,000 | 567,853 | |
(Dept. of Corrections Proj.) Series B, 5.25% 1/1/13 | 40,000 | 42,689 | |
(Dept. of Corrections, Madera State Prison Proj.) Series E, 6% 6/1/10 | 100,000 | 105,825 | |
(Dept. of Corrections, Monterey County State Prison Proj.): | |||
Series 2003 C: | |||
5% 6/1/08 | 500,000 | 504,850 | |
5.5% 6/1/14 | 100,000 | 108,606 | |
5.5% 6/1/14 (MBIA Insured) | 50,000 | 54,621 | |
Municipal Bonds - continued | |||
Principal Amount | Value | ||
California - continued | |||
California Pub. Works Board Lease Rev.: - continued | |||
(Dept. of Corrections, Monterey County State Prison Proj.): | |||
Series 2004 D, 5% 12/1/15 (MBIA Insured) | $ 150,000 | $ 160,311 | |
Series A, 5.25% 6/1/10 (AMBAC Insured) | 50,000 | 52,025 | |
Series C, 5.2% 12/1/09 (MBIA Insured) | 135,000 | 139,363 | |
Series J, 5% 1/1/10 (AMBAC Insured) | 130,000 | 133,926 | |
(Kern County at Delano II Proj.) Series 2003 C, 5.5% 6/1/13 | 200,000 | 216,406 | |
(Regents Univ. of California Proj.) Series A: | |||
0% 9/1/07 | 85,000 | 85,000 | |
5.25% 6/1/12 (AMBAC Insured) | 50,000 | 53,271 | |
(Various California State Univ. Projs.): | |||
Series 2005 L, 5.25% 11/1/09 | 260,000 | 268,590 | |
Series A, 5.5% 6/1/14 | 155,000 | 166,574 | |
Series B: | |||
5.55% 6/1/10 | 100,000 | 104,930 | |
5.55% 6/1/10 (MBIA Insured) | 250,000 | 262,060 | |
California State L.A. Univ. Auxiliary Services, Inc. Auxiliary Organization 5.25% 6/1/28 (Pre-Refunded to 6/1/11 @ 100) (b) | 40,000 | 42,330 | |
California State Univ. Rev.: | |||
Series B, 5% 11/1/11 (AMBAC Insured) | 40,000 | 42,158 | |
5% 11/1/10 (FSA Insured) | 1,005,000 | 1,045,652 | |
California State Univ., Fresno Assoc., Inc. Auxiliary Organization Event Ctr. Rev. 6% 7/1/26 (Pre-Refunded to 7/1/12 @ 101) (b) | 35,000 | 38,833 | |
California Statewide Communities Dev. Auth. Poll. Cont. Rev. (Southern California Edison Co.) 4.1%, tender 4/1/13 (XL Cap. Assurance, Inc. Insured) (a) | 1,000,000 | 1,010,410 | |
California Statewide Communities Dev. Auth. Rev.: | |||
(Daughters of Charity Health Sys. Proj.) Series F: | |||
5% 7/1/09 | 1,050,000 | 1,064,343 | |
5% 7/1/10 | 1,195,000 | 1,218,207 | |
(Kaiser Permanente Health Sys. Proj.): | |||
Series 2004 E, 3.875%, tender 4/1/10 (a) | 345,000 | 343,116 | |
Series 2004 H, 2.625%, tender 5/1/08 (a) | 2,000,000 | 1,982,960 | |
Series B, 4.3712% 4/1/36 (a) | 1,000,000 | 900,330 | |
Series I, 3.45%, tender 5/1/11 (a) | 1,000,000 | 973,470 | |
(Sr. Living Presbyterian Homes Proj.) Series A, 4.5% 11/15/10 | 445,000 | 443,665 | |
(Thomas Jefferson School of Law Proj.) 7.75% 10/1/31 (Pre-Refunded to 10/1/11 @ 101) (b) | 1,000,000 | 1,143,150 | |
Municipal Bonds - continued | |||
Principal Amount | Value | ||
California - continued | |||
California Statewide Communities Dev. Auth. Wtr. & Wastewtr. Rev. Series 2004 A: | |||
5% 10/1/13 (Escrowed to Maturity) (b) | $ 15,000 | $ 16,068 | |
5% 10/1/13 (FSA Insured) | 40,000 | 42,714 | |
Capistrano Unified School District Cmnty. Facilities District #98-2, Ladera 5.75% 9/1/29 (Pre-Refunded to 9/1/09 @ 102) (b) | 330,000 | 349,384 | |
Carmichael Wtr. District Wtr. Rev. Ctfs. of Prtn. 4.75% 9/1/09 (MBIA Insured) | 70,000 | 71,599 | |
Castaic Lake Wtr. Agcy. Ctfs. of Prtn. (Wtr. Sys. Impt. Proj.) Series A, 7% 8/1/11 (MBIA Insured) | 1,025,000 | 1,147,303 | |
Chaffey Cmnty. College District Series A, 5.25% 7/1/14 (Pre-Refunded to 7/1/12 @ 101) (b) | 30,000 | 32,438 | |
Chaffey Unified High School District: | |||
Series B, 5.5% 8/1/13 (Pre-Refunded to 8/1/10 @ 101) (b) | 70,000 | 74,346 | |
5% 8/1/12 (FGIC Insured) | 20,000 | 21,220 | |
Contra Costa County Pub. Fing. Auth. Lease Rev. Series B: | |||
4.5% 6/1/09 (MBIA Insured) | 40,000 | 40,633 | |
5% 6/1/10 (MBIA Insured) | 2,000,000 | 2,068,080 | |
Contra Costa Trans. Auth. Sales Tax Rev. Series A, 6% 3/1/09 (FGIC Insured) | 200,000 | 206,898 | |
Davis Spl. Tax Rev.: | |||
5% 9/1/09 (AMBAC Insured) | 540,000 | 553,025 | |
5% 9/1/10 (AMBAC Insured) | 565,000 | 585,114 | |
Duarte Unified School District Gen. Oblig. Series B, 0% 11/1/16 (FSA Insured) | 85,000 | 57,577 | |
East Bay Muni. Util. District Wastewtr. Sys. Rev. 4.75% 6/1/28 (Pre-Refunded to 6/1/08 @ 101) (b) | 60,000 | 61,115 | |
East Bay Muni. Util. District Wtr. Sys. Rev. 4.75% 6/1/28 (Pre-Refunded to 6/1/08 @ 101) (b) | 135,000 | 137,510 | |
East Side Union High School District Santa Clara County | |||
5% 8/1/11 (FSA Insured) | 45,000 | 47,208 | |
5% 8/1/12 (FSA Insured) | 55,000 | 58,230 | |
El Centro School District Gen. Oblig. Series A, 6% 8/1/12 (AMBAC Insured) | 15,000 | 16,584 | |
Elk Grove Cmnty. Facilities District #2003-1 Spl. Tax 6% 9/1/28 (Pre-Refunded to 9/1/08 @ 101) (b) | 50,000 | 51,628 | |
Evergreen School District Gen. Oblig. Series B, 4.9% 9/1/15 (Pre-Refunded to 9/1/07 @ 101) (b) | 45,000 | 45,450 | |
Municipal Bonds - continued | |||
Principal Amount | Value | ||
California - continued | |||
Fillmore Pub. Fing. Auth. Rev. (Wtr. Recycling Fing. Proj.): | |||
4% 5/1/11 (CDC IXIS Finl. Guaranty Insured) | $ 240,000 | $ 242,513 | |
4% 5/1/12 (CDC IXIS Finl. Guaranty Insured) | 300,000 | 303,420 | |
Foothill-De Anza Cmnty. College District Series 2007 B, 4% 8/1/10 (AMBAC Insured) | 2,000,000 | 2,020,180 | |
Foothill/Eastern Trans. Corridor Agcy. Toll Road Rev. 4.75% 1/15/11 (MBIA Insured) | 35,000 | 36,191 | |
Fremont Union High School District, Santa Clara Series 1998 C, 5% 9/1/18 (Pre-Refunded to 9/1/12 @ 100) (b) | 85,000 | 90,430 | |
Fresno Swr. Rev. Series A, 6% 9/1/09 (MBIA Insured) | 100,000 | 104,664 | |
Golden State Tobacco Securitization Corp. Tobacco Settlement Rev.: | |||
Series 2003 A1, 5% 6/1/21 (Pre-Refunded to 6/1/13 @ 100) (b) | 195,000 | 197,077 | |
Series 2003 B: | |||
5% 6/1/43 (Pre-Refunded to 6/1/13 @ 100) (b) | 635,000 | 672,916 | |
5.75% 6/1/21 (Pre-Refunded to 6/1/08 @ 100) (b) | 130,000 | 132,088 | |
Series A-1, 5% 6/1/11 | 1,000,000 | 1,020,410 | |
Series B: | |||
5% 6/1/38 (Pre-Refunded to 6/1/13 @ 100) (b) | 725,000 | 768,290 | |
5% 6/1/43 (Pre-Refunded to 6/1/13 @ 100) (b) | 185,000 | 196,046 | |
5.375% 6/1/28 (Pre-Refunded to 6/1/10 @ 100) (b) | 60,000 | 62,655 | |
5.5% 6/1/33 (Pre-Refunded to 6/1/13 @ 100) (b) | 830,000 | 900,749 | |
5.5% 6/1/43 (Pre-Refunded to 6/1/13 @ 100) (b) | 1,950,000 | 2,116,218 | |
5.5% 6/1/43 (Pre-Refunded to 6/1/13 @ 100) (b) | 1,000,000 | 1,085,240 | |
5.6% 6/1/28 (Pre-Refunded to 6/1/10 @ 100) (b) | 115,000 | 120,757 | |
5.625% 6/1/33 (Pre-Refunded to 6/1/13 @ 100) (b) | 45,000 | 49,123 | |
5.625% 6/1/33 (Pre-Refunded to 6/1/13 @ 100) (b) | 175,000 | 191,035 | |
5.625% 6/1/38 (Pre-Refunded to 6/1/13 @ 100) (b) | 330,000 | 360,238 | |
Indio Pub. Fing. Auth. Lease Rev. Series B, 3.8%, tender 11/1/12 (AMBAC Insured) (a) | 500,000 | 500,445 | |
Jefferson Union High School District Gen. Oblig. Series A, 6.25% 2/1/12 (MBIA Insured) | 50,000 | 55,180 | |
Kern Cmnty. College District Gen. Oblig. Series A, 4.75% 11/1/26 (Pre-Refunded to 11/1/13 @ 100) (b) | 150,000 | 158,762 | |
Municipal Bonds - continued | |||
Principal Amount | Value | ||
California - continued | |||
Kern County High School District Series A, 6.3% 8/1/10 (MBIA Insured) | $ 75,000 | $ 80,493 | |
Lodi Elec. Sys. Rev. Ctfs. of Prtn. Series A, 5.4% 1/15/15 (Pre-Refunded to 1/15/09 @ 101) (b) | 50,000 | 51,700 | |
Los Angeles County Ctfs. of Prtn.: | |||
(Correctional Facilities Proj.) 0% 9/1/12 (Escrowed to Maturity) (b) | 100,000 | 82,919 | |
(Disney Parking Proj.) 0% 3/1/14 | 20,000 | 15,070 | |
Los Angeles County Metropolitan Trans. Auth. Sales Tax Rev.: | |||
(Proposition C Proj.): | |||
First Tier Sr. Series 2003 A, 5% 7/1/13 (FSA Insured) | 35,000 | 37,286 | |
Second Series 1999 A, 6% 7/1/09 | 200,000 | 207,914 | |
Series 2005 B, 5% 7/1/09 | 45,000 | 46,115 | |
Los Angeles County Pub. Works Fing. Auth. Lease Rev.: | |||
(Multiple Cap. Facilities #5 Proj.) Series B, 6% 12/1/07 (Escrowed to Maturity) (b) | 100,000 | 100,579 | |
(Multiple Cap. Facilities #6 Proj.) Series A, 5.625% 5/1/26 (Pre-Refunded to 5/1/10 @ 100) (b) | 105,000 | 110,442 | |
(Multiple Cap. Facilities Proj.) Series 1996 VB, 5.125% 12/1/29 (Pre-Refunded to 12/1/07 @ 101) (b) | 65,000 | 65,888 | |
Los Angeles County Pub. Works Fing. Auth. Rev.: | |||
(Los Angeles County Flood Cont. District Proj.) Series A, 5% 3/1/12 (MBIA Insured) | 35,000 | 36,896 | |
(Reg'l. Park & Open Space District Proj.): | |||
5% 10/1/12 (FSA Insured) | 105,000 | 111,357 | |
5% 10/1/14 (FSA Insured) | 25,000 | 26,813 | |
Los Angeles Dept. Arpt. Rev.: | |||
(Los Angeles Int'l. Arpt. Proj.) Series 2003 B, 5% 5/15/10 (MBIA Insured) | 65,000 | 67,263 | |
Series B, 5% 5/15/14 (MBIA Insured) | 135,000 | 144,324 | |
Los Angeles Dept. of Wtr. & Pwr. Rev.: | |||
Series 2001 A1, 5.25% 7/1/11 (MBIA Insured) | 120,000 | 126,917 | |
Series A Subseries A-1: | |||
5% 7/1/08 | 85,000 | 86,000 | |
5% 7/1/12 (MBIA Insured) | 25,000 | 26,467 | |
Los Angeles Gen. Oblig.: | |||
Series 2002 A, 5.25% 9/1/13 (MBIA Insured) | 170,000 | 183,848 | |
Series 2003 A, 5% 9/1/13 (MBIA Insured) | 20,000 | 21,363 | |
Series 2003 B, 5% 9/1/09 (FSA Insured) | 35,000 | 35,966 | |
Series A, 5% 9/1/15 (Pre-Refunded to 9/1/11 @ 100) (b) | 60,000 | 63,163 | |
Municipal Bonds - continued | |||
Principal Amount | Value | ||
California - continued | |||
Los Angeles Gen. Oblig.: - continued | |||
Series B, 4% 9/1/07 (FSA Insured) | $ 60,000 | $ 60,000 | |
Los Angeles Sanitation Equip. Charge Rev. Series A, 5% 2/1/09 (AMBAC Insured) | 25,000 | 25,492 | |
Los Angeles State Bldg. Auth. Lease Rev. (State of California Dept. of Gen. Services Lease Proj.) Series A, 5.625% 5/1/11 | 50,000 | 52,038 | |
Los Angeles Unified School District: | |||
Series 1997 F, 5% 7/1/14 (FSA Insured) | 25,000 | 26,593 | |
Series 2000 D, 5.625% 7/1/15 (Pre-Refunded to 7/1/10 @ 100) (b) | 80,000 | 84,394 | |
Series A, 5% 7/1/13 (MBIA Insured) | 25,000 | 26,701 | |
Series B, 5% 7/1/23 (FGIC Insured) (Pre-Refunded to 7/1/08 @ 101) (b) | 190,000 | 194,096 | |
Series C, 5.25% 7/1/11 (Pre-Refunded to 7/1/09 @ 101) (b) | 50,000 | 51,963 | |
Series E: | |||
5% 7/1/09 (MBIA Insured) | 55,000 | 56,393 | |
5% 7/1/10 | 1,795,000 | 1,857,879 | |
5.5% 7/1/13 (MBIA Insured) | 40,000 | 43,261 | |
Series F, 5% 7/1/15 (FSA Insured) | 5,000 | 5,297 | |
Series G, 5% 7/1/10 (AMBAC Insured) | 2,200,000 | 2,283,050 | |
Los Angeles Unified School District Ctfs. of Prtn.: | |||
(Multiple Properties Proj.) Series A: | |||
5% 8/1/09 (Escrowed to Maturity) (b) | 45,000 | 46,199 | |
5% 8/1/10 (Escrowed to Maturity) (b) | 60,000 | 62,363 | |
Series 2002, 5% 6/1/08 (FSA Insured) | 60,000 | 60,626 | |
Marin Muni. Wtr. District Rev. Ctfs. of Prtn. (2004 Fing. Proj.) 5% 7/1/12 (AMBAC Insured) | 25,000 | 26,445 | |
Metropolitan Wtr. District of Southern California Wtrwks. Rev.: | |||
Series 2004 B, 5% 7/1/10 | 90,000 | 93,348 | |
Series A: | |||
5% 7/1/13 | 35,000 | 37,343 | |
5% 7/1/26 (Pre-Refunded to 1/1/08 @ 101) (b) | 140,000 | 142,030 | |
5.25% 7/1/10 (Escrowed to Maturity) (b) | 70,000 | 73,051 | |
5.25% 3/1/21 (Pre-Refunded to 3/1/11 @ 101) (b) | 270,000 | 287,142 | |
Series B, 5% 7/1/11 | 145,000 | 152,128 | |
Monterey Peninsula Cmnty. College District Series A, 4.75% 8/1/27 (Pre-Refunded to 8/1/13 @ 100) (b) | 15,000 | 15,845 | |
Moreno Valley Ctfs. of Prtn. 5% 5/1/09 (MBIA Insured) | 10,000 | 10,231 | |
Municipal Bonds - continued | |||
Principal Amount | Value | ||
California - continued | |||
New Haven Unified School District Series B, 7.9% 8/1/12 (MBIA Insured) | $ 100,000 | $ 118,778 | |
Newhall School District Gen. Oblig. Series B, 5% 8/1/18 (Pre-Refunded to 8/1/12 @ 101) (b) | 45,000 | 48,207 | |
North Orange County Cmnty. College District Rev.: | |||
5% 8/1/14 (MBIA Insured) | 60,000 | 64,448 | |
5% 8/1/16 (MBIA Insured) | 35,000 | 37,522 | |
Northern California Gas Auth. #1 Gas Proj. Rev.: | |||
Series A, 5% 7/1/11 | 1,000,000 | 1,026,500 | |
4.041% 7/1/13 (a) | 1,000,000 | 969,400 | |
Northern California Pwr. Agcy. Pub. Pwr. Rev.: | |||
(Geothermal #3 Proj.): | |||
Series A, 5.85% 7/1/10 (Escrowed to Maturity) (b) | 25,000 | 26,454 | |
5.85% 7/1/10 (AMBAC Insured) | 25,000 | 26,440 | |
Series A, 5.8% 7/1/09 (Escrowed to Maturity) (b) | 60,000 | 62,369 | |
Oakland Gen. Oblig. Ctfs. of Prtn. (Oakland Museum Proj.) Series A, 5% 4/1/09 (AMBAC Insured) | 75,000 | 76,532 | |
Oakland Joint Powers Fing. Auth. Lease Rev. (Oakland Convention Centers Proj.) 5.25% 10/1/09 | 50,000 | 51,602 | |
Oakland Unified School District Alameda County 5% 8/1/12 (MBIA Insured) | 60,000 | 63,523 | |
Orange County Local Trans. Auth. Sales Tax Rev.: | |||
Series A, 5.5% 2/15/11 (MBIA Insured) | 20,000 | 21,194 | |
Sr. Series A, 5.7% 2/15/10 (AMBAC Insured) | 140,000 | 146,884 | |
6% 2/15/08 | 105,000 | 106,101 | |
Orange County Rfdg. Recovery Series A: | |||
5% 6/1/11 (MBIA Insured) | 150,000 | 157,331 | |
6% 6/1/09 (Escrowed to Maturity) (b) | 85,000 | 88,491 | |
Oxnard Fing. Auth. Wastewtr. Rev. 5% 6/1/11 | 25,000 | 26,222 | |
Palos Verdes Peninsula Unified School District Series A, 5.25% 11/1/14 (Pre-Refunded to 11/1/10 @ 101) (b) | 50,000 | 52,946 | |
Pasadena Unified School District Gen. Oblig.: | |||
(Election of 1997 Proj.) Series C, 4.75% 11/1/24 (Pre-Refunded to 11/1/11 @ 101) (b) | 50,000 | 52,690 | |
5% 11/1/10 (FGIC Insured) | 35,000 | 36,469 | |
Petaluma Cmnty. Dev. Commission Tax Allocation | 50,000 | 51,042 | |
Pleasanton Joint Powers Fing. Auth. Rev. Series B, 5.25% 9/2/08 (FSA Insured) | 120,000 | 121,853 | |
Municipal Bonds - continued | |||
Principal Amount | Value | ||
California - continued | |||
Pleasanton Unified School District Gen. Oblig.: | |||
Series 1997 F, 4.75% 8/1/25 (Pre-Refunded to 8/1/11 @ 101) (b) | $ 50,000 | $ 52,567 | |
Series B, 5% 8/1/14 (FSA Insured) | 60,000 | 64,448 | |
5% 8/1/11 (FSA Insured) | 100,000 | 105,092 | |
Pomona Pub. Fing. Auth. Rev.: | |||
5% 2/1/12 (AMBAC Insured) | 30,000 | 31,596 | |
5% 2/1/12 (Escrowed to Maturity) (b) | 10,000 | 10,570 | |
Pomona Unified School District Series A, 5.65% 2/1/08 | 25,000 | 25,206 | |
Port of Oakland Gen. Oblig. Series M, 5% 11/1/12 | 85,000 | 90,222 | |
Poway Unified School District Pub. Fing. Auth. Lease Rev. Cap. Appreciation 0%, tender 6/1/10 (FSA Insured) (a) | 2,000,000 | 1,793,920 | |
Rancho Mirage Joint Powers Fing. Auth. Rev. (Eisenhower Med. Ctr. Proj.) Series A, 5% 7/1/14 | 1,205,000 | 1,256,514 | |
Rancho Santiago Cmnty. College District 5% 9/1/16 | 45,000 | 48,274 | |
Riverside County Pub. Fing. Auth. Rev. (Rancho Village Proj.) Series A, 4.55% 9/2/08 (AMBAC Insured) | 55,000 | 55,531 | |
Sacramento City Fing. Auth. Rev.: | |||
Series A, 5.5% 12/1/18 (Pre-Refunded to 6/1/11 @ 100) (b) | 100,000 | 106,693 | |
5% 12/1/14 (FGIC Insured) | 40,000 | 42,958 | |
5.5% 6/1/20 (Pre-Refunded to 6/1/10 @ 101) (b) | 140,000 | 148,291 | |
San Bernardino County Trans. Auth. Sales Tax Rev. Series A, 5% 3/1/10 (AMBAC Insured) | 260,000 | 268,715 | |
San Diego County Ctfs. of Prtn. 5% 6/1/08 (AMBAC Insured) | 75,000 | 75,782 | |
San Diego County Reg'l. Trans. Commission Sales Tax Rev. Series A, 4.75% 4/1/08 (FGIC Insured) | 40,000 | 40,275 | |
San Diego County Wtr. Auth. Wtr. Rev. Series A, 5.25% 5/1/13 (FGIC Insured) | 50,000 | 53,814 | |
San Diego Pub. Facilities Fing. Auth. Wtr. Rev.: | |||
5% 8/1/11 (MBIA Insured) | 135,000 | 141,874 | |
5% 8/1/12 (MBIA Insured) | 890,000 | 944,308 | |
San Diego Unified School District (Election of 1998 Proj.) Series F, 5% 7/1/16 (FSA Insured) | 75,000 | 79,757 | |
San Diego Wtr. Util. Fund 5.375% 8/1/15 (Pre-Refunded to 8/1/08 @ 101) (b) | 50,000 | 51,302 | |
Municipal Bonds - continued | |||
Principal Amount | Value | ||
California - continued | |||
San Francisco Bldg. Auth. Lease Rev.: | |||
(Dept. Gen. Svcs. Lease Proj.) Series A: | |||
5% 10/1/13 (MBIA Insured) | $ 25,000 | $ 26,095 | |
5.125% 10/1/07 (MBIA Insured) | 80,000 | 80,078 | |
(San Francisco Civic Ctr. Complex Proj.) Series A, 6% 12/1/09 (AMBAC Insured) | 55,000 | 57,715 | |
San Francisco City & County Pub. Util. Commission Wtr. Rev. Series 2002 B, 5% 11/1/13 (MBIA Insured) | 200,000 | 212,188 | |
San Francisco Cmnty. College District Gen. Oblig. | 75,000 | 77,789 | |
San Jose Gen. Oblig. (Libraries, Parks and Pub. Safety Projs.) 5% 9/1/11 (MBIA Insured) | 45,000 | 47,338 | |
San Mateo County Trans. District Sales Tax Rev. Series A, 5.25% 6/1/16 (MBIA Insured) | 45,000 | 49,530 | |
San Mateo Unified School District 5% 9/1/15 (FSA Insured) | 25,000 | 26,747 | |
Santa Clara County Fing. Auth. Lease Rev. Series A, 6% 11/15/12 (AMBAC Insured) | 240,000 | 265,495 | |
Santa Clara Valley Wtr. District Ctfs. of Prtn. 5.25% 2/1/12 (FGIC Insured) | 35,000 | 37,215 | |
Santa Margarita/Dana Point Auth. Rev. (Wtr. Impt. Districts 3, 3A, 4 & 4A Proj.) Series B: | |||
7.25% 8/1/08 (MBIA Insured) | 1,000,000 | 1,032,190 | |
7.25% 8/1/11 (MBIA Insured) | 1,425,000 | 1,607,885 | |
Santa Maria Joint Union High School District Gen. Oblig. Series A, 5.375% 8/1/14 (Escrowed to Maturity) (b) | 20,000 | 21,986 | |
Saugus Union School District Series B, 5% 8/1/14 (FSA Insured) | 55,000 | 59,078 | |
South Orange County Pub. Fing. Auth. Spl. Tax Rev. (Foothill Area Proj.) Series C, 6.5% 8/15/10 (FGIC Insured) | 160,000 | 172,246 | |
Southern California Pub. Pwr. Auth. Rev.: | |||
(Multiple Projs.): | |||
6.75% 7/1/10 | 80,000 | 86,187 | |
6.75% 7/1/12 | 30,000 | 33,681 | |
6.75% 7/1/13 | 65,000 | 73,873 | |
(San Juan Unit 3 Proj.) Series A, 5.5% 1/1/14 | 200,000 | 218,702 | |
Southern California Pub. Pwr. Auth. Transmission Proj. Rev. (Southern California Transmission Proj.) 5% 7/1/12 | 55,000 | 58,303 | |
Municipal Bonds - continued | |||
Principal Amount | Value | ||
California - continued | |||
Southwestern Cmnty. College District Gen. Oblig.: | |||
Series B, 5.25% 8/1/14 (FGIC Insured) | $ 25,000 | $ 27,230 | |
5% 8/1/15 (Pre-Refunded to 8/1/14 @ 100) (b) | 45,000 | 48,450 | |
Stockton Unified School District Gen. Oblig. 5.5% 7/1/11 (FSA Insured) | 50,000 | 53,288 | |
Sweetwater Union High School District Pub. Fing. Auth. Spl. Tax Rev. Series A, 5% 9/1/14 (FSA Insured) | 50,000 | 53,589 | |
Tobacco Securitization Auth. Northern California Tobacco Settlement Rev. Series B, 5% 6/1/28 (Pre-Refunded to 6/1/11 @ 100) (b) | 60,000 | 62,868 | |
Univ. of California Revs.: | |||
(Multiple Purp. Projs.): | |||
Series O, 5.75% 9/1/09 (FGIC Insured) | 35,000 | 36,466 | |
Series Q, 5% 9/1/11 (FSA Insured) | 50,000 | 52,598 | |
Series A: | |||
5% 5/15/10 (AMBAC Insured) | 120,000 | 124,333 | |
5% 5/15/12 (AMBAC Insured) | 80,000 | 84,687 | |
Series K, 5% 5/15/09 | 1,000,000 | 1,023,260 | |
Upland Unified School District Gen. Oblig. Series A, 5.25% 8/1/10 (FSA Insured) | 50,000 | 52,283 | |
Washington Township Health Care District Rev. Series A, 5% 7/1/12 | 385,000 | 396,265 | |
Western Placer Unified School District Ctfs. of Prtn. | 1,000,000 | 996,660 | |
Westlands Wtr. District Rev. Ctfs. of Prtn. Series A, 5% 3/1/29 (Pre-Refunded to 3/1/09 @ 101) (b) | 165,000 | 170,029 | |
Whisman School District Gen. Oblig. Series A, 0% 8/1/14 (Escrowed to Maturity) (b) | 40,000 | 30,573 | |
Whittier School District Gen. Oblig. Series D, 5% 8/1/11 | 25,000 | 26,366 | |
104,530,252 | |||
Guam - 1.1% | |||
Guam Ed. Fing. Foundation Series A, 5% 10/1/09 | 1,000,000 | 1,017,480 | |
Guam Wtrwks. Auth. Wtr. and Wastewtr. Sys. Rev. 5% 7/1/09 | 260,000 | 261,149 | |
1,278,629 | |||
Puerto Rico - 4.4% | |||
Puerto Rico Commonwealth Gen. Oblig.: | |||
Series 1993, 7% 7/1/10 (AMBAC Insured) | 325,000 | 353,743 | |
Series 2003 C, 4.25%, tender 7/1/08 (MBIA Insured) (a) | 265,000 | 266,306 | |
Series B, 5.5% 7/1/11 (FGIC Insured) | 250,000 | 266,440 | |
Municipal Bonds - continued | |||
Principal Amount | Value | ||
Puerto Rico - continued | |||
Puerto Rico Commonwealth Gen. Oblig.: - continued | |||
5.25% 7/1/09 (FGIC Insured) | $ 1,935,000 | $ 1,983,162 | |
5.25% 7/1/10 (FGIC Insured) | 170,000 | 177,361 | |
5.75% 7/1/08 (MBIA Insured) | 200,000 | 203,442 | |
6.5% 7/1/12 (MBIA Insured) | 75,000 | 84,157 | |
Puerto Rico Commonwealth Hwy. & Trans. Auth. Hwy. Rev. 5.5% 7/1/09 (FSA Insured) | 60,000 | 61,861 | |
Puerto Rico Commonwealth Infrastructure Fing. Auth.: | |||
Series 1997 A, 5% 7/1/14 (Pre-Refunded to 1/1/08 @ 101) (b) | 75,000 | 76,081 | |
Series A, 5% 7/1/28 (Pre-Refunded to 1/1/08 @ 101) (b) | 115,000 | 116,657 | |
Puerto Rico Govt. Dev. Bank Series B, 5% 12/1/12 | 1,000,000 | 1,042,460 | |
Univ. of Puerto Rico Series Q, 5% 6/1/09 | 500,000 | 507,615 | |
5,139,285 | |||
Virgin Islands - 0.8% | |||
Virgin Islands Pub. Fin. Auth. Rev.: | |||
4% 10/1/09 (FGIC Insured) | 350,000 | 352,555 | |
4% 10/1/10 (FGIC Insured) | 580,000 | 586,171 | |
938,726 | |||
TOTAL INVESTMENT PORTFOLIO - 96.4% (Cost $111,965,487) | 111,886,892 | ||
NET OTHER ASSETS - 3.6% | 4,186,998 | ||
NET ASSETS - 100% | $ 116,073,890 |
Legend |
(a) The coupon rate shown on floating or adjustable rate securities represents the rate at period end. |
(b) Security collateralized by an amount sufficient to pay interest and principal. |
Other Information |
The distribution of municipal securities by revenue source, as a percentage of total net assets, is as follows: |
General Obligations | 34.5% |
Escrowed/Pre-Refunded | 15.9% |
Special Tax | 13.9% |
Electric Utilities | 8.9% |
Health Care | 8.1% |
Water & Sewer | 6.1% |
Other | 6.1% |
Others* (individually less than 5%) | 6.5% |
100.0% |
* Includes net other assets |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
August 31, 2007 (Unaudited) | ||
Assets | ||
Investment in securities, at value - Unaffiliated issuers (cost $111,965,487) | $ 111,886,892 | |
Cash | 1,013,331 | |
Receivable for investments sold | 53,332 | |
Receivable for fund shares sold | 2,181,585 | |
Interest receivable | 1,305,964 | |
Prepaid expenses | 106 | |
Receivable from investment adviser for expense reductions | 10,788 | |
Other receivables | 28,799 | |
Total assets | 116,480,797 | |
Liabilities | ||
Payable for fund shares redeemed | $ 249,447 | |
Distributions payable | 69,014 | |
Accrued management fee | 34,021 | |
Transfer agent fee payable | 21,835 | |
Other affiliated payables | 9,471 | |
Other payables and accrued expenses | 23,119 | |
Total liabilities | 406,907 | |
Net Assets | $ 116,073,890 | |
Net Assets consist of: | ||
Paid in capital | $ 116,090,887 | |
Distributions in excess of net investment income | (292) | |
Accumulated undistributed net realized gain (loss) on investments | 61,890 | |
Net unrealized appreciation (depreciation) on investments | (78,595) | |
Net Assets, for 11,574,188 shares outstanding | $ 116,073,890 | |
Net Asset Value, offering price and redemption price per share ($116,073,890 ÷ 11,574,188 shares) | $ 10.03 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Six months ended August 31, 2007 (Unaudited) | ||
Investment Income | ||
Interest | $ 1,983,846 | |
Expenses | ||
Management fee | $ 197,907 | |
Transfer agent fees | 32,588 | |
Accounting fees and expenses | 13,997 | |
Custodian fees and expenses | 917 | |
Independent trustees' compensation | 169 | |
Registration fees | 5,532 | |
Audit | 23,182 | |
Legal | 251 | |
Miscellaneous | 374 | |
Total expenses before reductions | 274,917 | |
Expense reductions | (129,332) | 145,585 |
Net investment income | 1,838,261 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 18,003 | |
Futures contracts | 38,480 | |
Total net realized gain (loss) | 56,483 | |
Change in net unrealized appreciation (depreciation) on investment securities | (562,791) | |
Net gain (loss) | (506,308) | |
Net increase (decrease) in net assets resulting from operations | $ 1,331,953 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
Six months ended | Year ended | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income | $ 1,838,261 | $ 2,702,761 |
Net realized gain (loss) | 56,483 | 16,385 |
Change in net unrealized appreciation (depreciation) | (562,791) | 329,732 |
Net increase (decrease) in net assets resulting | 1,331,953 | 3,048,878 |
Distributions to shareholders from net investment income | (1,838,274) | (2,703,303) |
Distributions to shareholders from net realized gain | - | (9,474) |
Total distributions | (1,838,274) | (2,712,777) |
Share transactions | 31,623,327 | 73,138,565 |
Reinvestment of distributions | 1,473,197 | 2,126,583 |
Cost of shares redeemed | (18,565,201) | (27,940,353) |
Net increase (decrease) in net assets resulting from share transactions | 14,531,323 | 47,324,795 |
Redemption fees | 163 | 1,259 |
Total increase (decrease) in net assets | 14,025,165 | 47,662,155 |
Net Assets | ||
Beginning of period | 102,048,725 | 54,386,570 |
End of period (including distributions in excess of net investment income of $292 and distributions in excess of net investment income of $279, respectively) | $ 116,073,890 | $ 102,048,725 |
Other Information Shares | ||
Sold | 3,155,144 | 7,291,544 |
Issued in reinvestment of distributions | 146,892 | 211,757 |
Redeemed | (1,853,748) | (2,785,482) |
Net increase (decrease) | 1,448,288 | 4,717,819 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights
Six months ended August 31, 2007 | Years ended February 28, | ||
(Unaudited) | 2007 | 2006 E | |
Selected Per-Share Data | |||
Net asset value, beginning of period | $ 10.08 | $ 10.06 | $ 10.00 |
Income from Investment Operations | |||
Net investment income D | .170 | .328 | .105 |
Net realized and unrealized gain (loss) | (.050) | .021 | .059 |
Total from investment operations | .120 | .349 | .164 |
Distributions from net investment income | (.170) | (.328) | (.104) |
Distributions from net realized gain | - | (.001) | - |
Total distributions | (.170) | (.329) | (.104) |
Redemption fees added to paid in capital D, G | - | - | - |
Net asset value, end of period | $ 10.03 | $ 10.08 | $ 10.06 |
Total Return B, C | 1.21% | 3.54% | 1.64% |
Ratios to Average Net Assets F | |||
Expenses before reductions | .51% A | .57% | .94% A |
Expenses net of fee waivers, if any | .35% A | .35% | .35% A |
Expenses net of all reductions | .27% A | .26% | .23% A |
Net investment income | 3.38% A | 3.27% | 3.06% A |
Supplemental Data | |||
Net assets, end of period (000 omitted) | $ 116,074 | $ 102,049 | $ 54,387 |
Portfolio turnover rate | 25% A | 16% | 0% A |
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E For the period October 25, 2005 (commencement of operations) to February 28, 2006.
F Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
G Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended August 31, 2007 (Unaudited)
1. Organization.
Fidelity California Short-Intermediate Tax-Free Bond Fund (the Fund) is a non-diversified fund of Fidelity California Municipal Trust (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund may be affected by economic and political developments in the state of California.
2. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued and net asset value per share is calculated (NAV calculation) as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments. Debt securities, including restricted securities, for which quotes are readily available, are valued by independent pricing services or by dealers who make markets in such securities. Pricing services consider yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices.
When current market prices or quotations are not readily available or do not accurately reflect fair value, valuations may be determined in accordance with procedures adopted by the Board of Trustees. The frequency of when fair value pricing is used is unpredictable. The value of securities used for NAV calculation under fair value pricing may differ from published prices for the same securities. Investments in open-end mutual funds are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV for processing shareholder transactions includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Interest income is accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities.
Semiannual Report
2. Significant Accounting Policies - continued
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. The Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund adopted the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48), on June 29, 2007. FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements. Each of the tax years in the three year period ended June 29, 2007, if applicable remains subject to examination by the Internal Revenue Service.
Dividends are declared daily and paid monthly from net investment income. Distributions from realized gains, if any, are recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to futures transactions and market discount.
The Fund purchases municipal securities whose interest, in the opinion of the issuer, is free from federal income tax. There is no assurance that the Internal Revenue Service (IRS) will agree with this opinion. In the event the IRS determines that the issuer does not comply with relevant tax requirements, interest payments from a security could become federally taxable, possibly retroactively to the date the security was issued.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 284,768 | |
Unrealized depreciation | (363,329) | |
Net unrealized appreciation (depreciation) | $ (78,561) | |
Cost for federal income tax purposes | $ 111,965,453 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
2. Significant Accounting Policies - continued
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 30 days are subject to a redemption fee equal to .50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by Fidelity Management & Research Company (FMR), are retained by the Fund and accounted for as an addition to paid in capital.
New Accounting Pronouncement. In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact the adoption of SFAS 157 will have on the Fund's financial statement disclosures.
3. Operating Policies.
Futures Contracts. The Fund may use futures contracts to manage its exposure to the bond market and to fluctuations in interest rates. Buying futures tends to increase a fund's exposure to the underlying instrument, while selling futures tends to decrease a fund's exposure to the underlying instrument or hedge other fund investments. Upon entering into a futures contract, a fund is required to deposit with a clearing broker, no later than the following business day, an amount ("initial margin") equal to a certain percentage of the face value of the contract. The initial margin may be in the form of cash or securities and is transferred to a segregated account on settlement date. Subsequent payments ("variation margin") are made or received by a fund depending on the daily fluctuations in the value of the futures contract and are accounted for as unrealized gains or losses. Realized gains (losses) are recorded upon the expiration or closing of the futures contract. Securities deposited to meet margin requirements are identified in the Schedule of Investments. Losses may arise from changes in the value of the underlying instruments or if the counterparties do not perform under the contract's terms. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded.
4. Purchases and Sales of Investments.
Purchases and sales of securities other than short-term securities, aggregated $28,851,228 and $13,101,225, respectively.
Semiannual Report
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .25% of the Fund's average net assets and a group fee rate that averaged ..12% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .36% of the Fund's average net assets.
Transfer Agent and Accounting Fees. Citibank, N.A. (Citibank) is the custodian, transfer agent and shareholder servicing agent for the Fund. Citibank has entered into a sub-arrangement with Fidelity Service Company, Inc. (FSC), an affiliate of FMR, under which FSC performs the activities associated with the Fund's transfer and shareholder servicing agent and accounting functions. The Fund pays account fees and asset-based fees that vary according to account size and type of account. FSC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. The accounting fee is based on the level of average net assets for the month. For the period, the transfer agent fees were equivalent to an annualized rate of .06% of average net assets.
6. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro rata portion of the line of credit, which amounted to $108 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
7. Expense Reductions.
FMR voluntarily agreed to reimburse the Fund to the extent annual operating expenses exceeded .35% of average net assets. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement. During the period this reimbursement reduced the Fund's expenses by $85,018.
In addition, through arrangements with the Fund's custodian and transfer agent, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody, transfer agent and accounting expenses by $917, $31,244 and $12,153, respectively.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity California Short-Intermediate Tax-Free Bond Fund
Each year, typically in June, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract and sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information throughout the year.
The Board meets regularly each month except August and takes into account throughout the year matters bearing on Advisory Contracts. The Board, acting directly and through its separate committees, considers at each of its meetings factors that are relevant to the annual renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. At the time of the renewal, the Board had 12 standing committees, each composed of Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. Each committee has adopted a written charter outlining the structure and purposes of the committee. One such committee, the Fixed-Income Contract Committee, meets periodically as needed throughout the year to consider matters specifically related to the annual renewal of Advisory Contracts. The committee requests and receives information on, and makes recommendations to the Independent Trustees concerning, the approval and annual review of the Advisory Contracts.
At its June 2007 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew the Advisory Contracts for the fund. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the management fee and total expenses of the fund; (iii) the total costs of the services to be provided by and the profits to be realized by the investment adviser and its affiliates from the relationship with the fund; (iv) the extent to which economies of scale would be realized as the fund grows; and (v) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders. The Board also approved amendments to the fund's agreements with foreign sub-advisers to clarify that each sub-adviser provides services as an independent contractor.
In determining whether to renew the Advisory Contracts for the fund, the Board ultimately reached a determination, with the assistance of fund counsel and Independent Trustees' counsel, that the renewal of the Advisory Contracts and the compensation to be received by Fidelity under the management contract is consistent with Fidelity's fiduciary duty under applicable law. In addition to evaluating the specific factors noted above, the Board, in reaching its determination, is aware that shareholders in the fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by competitors to Fidelity, and that the fund's shareholders, with the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, managed by Fidelity.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Nature, Extent, and Quality of Services Provided. The Board considered staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the background of the fund's portfolio manager and the fund's investment objective and discipline. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives.
Resources Dedicated to Investment Management and Support Services. The Board reviewed the size, education, and experience of the Investment Advisers' investment staff, their use of technology, and the Investment Advisers' approach to recruiting, training, and retaining portfolio managers and other research, advisory, and management personnel. The Board considered Fidelity's extensive global research capabilities that enable the Investment Advisers to aggregate data from various sources in an effort to produce positive investment results. The Board noted that Fidelity's analysts have access to a variety of technological tools that enable them to perform both fundamental and quantitative analysis and to specialize in various disciplines. The Board also considered that Fidelity's portfolio managers and analysts have access to daily portfolio attribution that allows for monitoring of a fund's portfolio, as well as an electronic communication system that provides immediate real-time access to research concerning issuers and credit enhancers. In addition, the Board considered the trading resources that are an integrated part of the fixed-income portfolio management investment process.
Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, distribution, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency and pricing and bookkeeping services for the fund; (ii) the nature and extent of the Investment Advisers' supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures.
The Board noted that the growth of fund assets across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through phone representatives and over the Internet, and investor education materials and asset allocation tools.
Semiannual Report
Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing for a large variety of mutual fund investor services. For example, fund shareholders are offered the privilege of exchanging shares of the fund for shares of other Fidelity funds, as set forth in the fund's prospectus, without paying a sales charge. The Board noted that, since June 2006, Fidelity has taken a number of actions that benefited particular funds, including (i) dedicating additional resources to investment research and to restructure the investment research teams; (ii) contractually agreeing to reduce the management fee on Fidelity Advisor Floating Rate High Income Fund; (iii) contractually agreeing to reduce the management fees on Fidelity's California, Massachusetts, New Jersey, and New York AMT Tax-Free Money Market Funds, launching new Institutional Classes and Service Classes of these funds, and contractually agreeing to impose expense limitations on these funds; (iv) eliminating the exchange fee on the Fidelity Select Portfolios and reducing the pricing and bookkeeping fee rates for these funds; (v) reducing the maximum transfer agency fee rates on high income funds and certain equity funds; (vi) proposing amended management contracts that, if approved by shareholders, will add a performance adjustment component to the management fees paid by 18 Fidelity Advisor equity funds; (vii) contractually agreeing to reduce fees for Ultra-Short Central Fund and the money market Central Funds; (viii) waiving the Fidelity Advisor funds' contingent deferred sales charge on certain redemptions made through systematic withdrawal programs; and (ix) amending the management contracts for equity and fixed-income funds whose management contracts incorporate a "group fee" structure by adding four new fee "breakpoints" to the group fee rate schedules.
Investment Performance. The Board considered whether the fund has operated within its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed the fund's absolute investment performance, as well as the fund's relative investment performance measured against (i) a broad-based securities market index, and (ii) a peer group of mutual funds deemed appropriate by the Board. Because the fund had been in existence less than three calendar years, the following chart considered by the Board shows, for the one-year period ended December 31, 2006, the fund's total return, the total returns of a broad-based securities market index ("benchmark"), and a range of total returns of a peer group of mutual funds identified by Lipper Inc. as having an investment objective similar to that of the fund. The box within the chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten number noted below the chart corresponds to the percentile box and represents the percentage of funds in the peer group whose performance was equal to or lower than that of the fund.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Fidelity California Short-Intermediate Tax-Free Bond Fund
The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of the fund was in the second quartile for the period shown. The Board also stated that the relative investment performance of the fund compared favorably to its benchmark for the period shown. The Board stated that it is difficult to evaluate in any comprehensive fashion the performance of the fund, in light of its relatively recent commencement of operations.
Based on its review, and giving particular weight to the nature and quality of the resources dedicated by the Investment Advisers to maintain and improve relative performance, the Board concluded that the nature, extent, and quality of the services provided to the fund will benefit the fund's shareholders, particularly in light of the Board's view that the fund's shareholders benefit from investing in a fund that is part of a large family of funds offering a variety of investment disciplines and services.
Competitiveness of Management Fee and Total Fund Expenses. The Board considered the fund's management fee and total expenses compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management fee and total expense comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.
The Board considered two proprietary management fee comparisons for the 12-month (or shorter) periods shown in the chart below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group" and, for the reasons explained above, is broader than the Lipper peer group used by the Board for performance comparisons. The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors, in terms of gross management fees before expense reimbursements or caps. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than the fund's. For example, a TMG % of 8% means that 92% of the funds in the Total Mapped Group had higher management fees than the fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which the fund's management fee ranked, is also included in the chart and considered by the Board.
Semiannual Report
Fidelity California Short-Intermediate Tax-Free Bond Fund
The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2006. Based on its review, the Board concluded that the fund's management fee was fair and reasonable in light of the services that the fund receives and the other factors considered.
In its review of the fund's total expenses, the Board considered the fund's management fee as well as other fund expenses, such as transfer agent fees, pricing and bookkeeping fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses. As part of its review, the Board also considered current and historical total expenses of the fund compared to competitive fund median expenses. The fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
The Board noted that the fund's total expenses ranked below its competitive median for 2006.
In its review of total expenses, the Board also considered Fidelity fee structures and other information on clients that FMR and its affiliates service in other competitive markets, such as other mutual funds advised or subadvised by FMR or its affiliates, pension plan clients, and other institutional clients.
Based on its review, the Board concluded that the fund's total expenses were reasonable in light of the services that the fund and its shareholders receive and the other factors considered.
Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing the fund and its shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.
On an annual basis, FMR presents to the Board Fidelity's profitability for the fund. Fidelity calculates the profitability for each fund, as well as aggregate profitability for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the audited books and records of Fidelity. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.
PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of the results of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures surrounding the mathematical accuracy of fund profitability and its conformity to allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board believes that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.
The Board has also reviewed Fidelity's non-fund businesses and any fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the fund's business.
Semiannual Report
The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund and determined that the amount of profit is a fair entrepreneurial profit for the management of the fund.
Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which the fund will benefit from economies of scale through increased services to the fund, through waivers or reimbursements, or through fee or expense reductions, including reductions that occur through operation of the transfer agent agreement. The transfer agent fee varies in part based on the number of accounts in the fund. If the number of accounts decreases or the average account size increases, the overall transfer agent fee rate decreases.
The Board recognized that the fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total fund assets under FMR's management increase, and for higher group fee rates as total fund assets under FMR's management decrease. FMR determines the group fee rates based on a tiered asset "breakpoint" schedule. In connection with the renewal of the fund's management contract, the Board approved amendments to the fund's management contract that added four new fee breakpoints to the group fee rate schedule for assets under FMR's management above $1,386 billion. The Board considered that the group fee rate declines under both the present and amended schedules, but that under the amended schedule, the group fee rate declines faster as assets under FMR's management exceed $1,386 billion. The Board considered that the group fee is designed to deliver the benefits of economies of scale to fund shareholders when total fund assets increase, even if assets of any particular fund are unchanged or have declined, because some portion of Fidelity's costs are attributable to services provided to all Fidelity funds, and all funds benefit if those costs can be allocated among more assets. The Board concluded that, given the group fee structure, fund shareholders will achieve a certain level of economies of scale as assets under FMR's management increase at the fund complex level, regardless of whether Fidelity achieves any such economies of scale.
The Board concluded that any potential economies of scale are being shared between fund shareholders and Fidelity in an appropriate manner.
Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on several topics, including (i) Fidelity's fund profitability methodology, profitability by investment discipline, and profitability trends within certain funds; (ii) Fidelity's compensation structure relative to competitors and its effect on profitability; (iii) funds and accounts managed by Fidelity other than the Fidelity funds, including fee arrangements; (iv) the total expenses of certain funds and classes relative to competitors; (v) fund performance trends; (vi) fall-out benefits received by certain Fidelity affiliates; and (vii) Fidelity's fee structures.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Based on its evaluation of all of the conclusions noted above, and after considering all material factors, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that the fund's Advisory Contracts should be renewed.
Semiannual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone_graphic)
Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555
Press
1 For mutual fund and brokerage trading.
2 For quotes.*
3 For account balances and holdings.
4 To review orders and mutual
fund activity.
5 To change your PIN.
*0 To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
(computer_graphic)
Fidelity's Web Site
www.fidelity.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Adviser
Fidelity Investments
Money Management, Inc.
Fidelity Research & Analysis Company
Fidelity International Investment Advisors
Fidelity International Investment Advisors
(U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Citibank, N.A.
New York, NY
Fidelity Services Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
The Fidelity Telephone Connection
Mutual Fund 24-Hour Service
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
Retirement Accounts 1-800-544-4774 (8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
Fidelity Automated Service
Telephone (FAST®) (automated graphic) 1-800-544-5555
(automated graphic) Automated line for quickest service
CSI-USAN-1007
1.817079.101
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
Item 2. Code of Ethics
Not applicable.
Item 3. Audit Committee Financial Expert
Not applicable.
Item 4. Principal Accountant Fees and Services
Not applicable.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. Schedule of Investments
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. Purchase 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
There were no material changes to the procedures by which shareholders may recommend nominees to the Fidelity California Municipal Trust's Board of Trustees.
Item 11. Controls and Procedures
(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the Fidelity California Municipal Trust's (the "Trust") disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) provide reasonable assurances that material information relating to the Trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.
(a)(ii) There was no change in the Trust's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Trust's internal control over financial reporting.
Item 12. Exhibits
(a) | (1) | Not applicable. |
(a) | (2) | Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT. |
(a) | (3) | Not applicable. |
(b) | Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 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.
Fidelity California Municipal Trust
By: | /s/Kimberley Monasterio |
Kimberley Monasterio | |
President and Treasurer | |
Date: | October 30, 2007 |
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/Kimberley Monasterio |
Kimberley Monasterio | |
President and Treasurer | |
Date: | October 30, 2007 |
By: | /s/Joseph B. Hollis |
Joseph B. Hollis | |
Chief Financial Officer | |
Date: | October 30, 2007 |