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: 811-4474
Name of Registrant: Vanguard California Tax-Free Funds
Address of Registrant:
P.O. Box 2600
Valley Forge, PA 19482
Name and address of agent for service:
Heidi Stam, Esquire
P.O. Box 876
Valley Forge, PA 19482
Registrant’s telephone number, including area code: (610) 669-1000
Date of fiscal year end: November 30
Date of reporting period: December 1, 2010 – May 31, 2011
Item 1: Reports to Shareholders
 |
| Vanguard California Tax-Exempt Funds |
| Semiannual Report |
|
| May 31, 2011 |
| |
 |
| |
| Vanguard California Tax-Exempt Money Market Fund |
| Vanguard California Intermediate-Term Tax-Exempt Fund |
| Vanguard California Long-Term Tax-Exempt Fund |
|
> With short-term interest rates still anchored near zero, Vanguard California Tax-Exempt Money Market Fund returned 0.06% for the six months ended May 31, 2011, ahead of the average return of its state peer group.
> Vanguard California Intermediate-Term Tax-Exempt Fund returned 2.12% for Investor Shares, a few steps ahead of the average return of its state peers and in line with its national benchmark index.
> Vanguard California Long-Term Tax-Exempt Fund returned 1.60% for Investor Shares, well ahead of the average return of its California peers but behind its national benchmark index.
| |
| Contents | |
| Your Fund’s Total Returns. | 1 |
| Chairman’s Letter. | 2 |
| Advisor’s Report. | 10 |
| California Tax-Exempt Money Market Fund. | 14 |
| California Intermediate-Term Tax-Exempt Fund. | 32 |
| California Long-Term Tax-Exempt Fund. | 65 |
| About Your Fund’s Expenses. | 90 |
| Trustees Approve Advisory Arrangement. | 92 |
| Glossary. | 93 |
Please note: The opinions expressed in this report are just that—informed opinions. They should not be considered promises or advice.
Also, please keep in mind that the information and opinions cover the period through the date on the front of this report. Of course, the risks of investing in your fund are spelled out in the prospectus.
See the Glossary for definitions of investment terms used in this report.
Cover photograph: Jean Maher.
Your Fund’s Total Returns
| | | | | |
| Six Months Ended May 31, 2011 | | | | | |
| | | Taxable- | | | |
| | | SEC Equivalent | Income | Capital | Total |
| | Yields | Yields | Returns | Returns | Returns |
| Vanguard California Tax-Exempt Money Market | | | | | |
| Fund | 0.05% | 0.09% | 0.06% | 0.00% | 0.06% |
| California Tax-Exempt Money Market Funds | | | | | |
| Average | | | | | 0.00 |
| California Tax-Exempt Money Market Funds Average: Derived from data provided by Lipper Inc. |
|
| Vanguard California Intermediate-Term Tax-Exempt Fund | | | | |
| Investor Shares | 3.07% | 5.27% | 1.94% | 0.18% | 2.12% |
| Admiral™ Shares | 3.15 | 5.40 | 1.98 | 0.18 | 2.16 |
| Barclays Capital 7 Year Municipal Bond Index | | | | | 2.38 |
| California Intermediate Municipal Debt Funds | | | | | |
| Average | | | | | 1.74 |
| California Intermediate Municipal Debt Funds Average: Derived from data provided by Lipper Inc. |
|
| Vanguard California Long-Term Tax-Exempt Fund | | | | | |
| Investor Shares | 3.80% | 6.52% | 2.24% | -0.64% | 1.60% |
| Admiral™ Shares | 3.88 | 6.65 | 2.28 | -0.64 | 1.64 |
| Barclays Capital 10 Year Municipal Bond Index | | | | | 2.73 |
| California Municipal Debt Funds Average | | | | | 0.97 |
| California Municipal Debt Funds Average: Derived from data provided by Lipper Inc. |
7-day SEC yield for the California Tax-Exempt Money Market Fund; 30-day SEC yield for the California Intermediate-Term Tax-Exempt Fund and California Long-Term Tax-Exempt Fund.
The calculation of taxable-equivalent yield assumes a typical itemized tax return and is based on the maximum federal tax rate of 35% and the maximum income tax rate for the state. Local taxes were not considered. Please see the prospectus for a detailed explanation of the calculation.
Admiral Shares carry lower expenses and are available to investors who meet certain account-balance requirements.
1
Chairman’s Letter
Dear Shareholder,
A springtime rally helped the broad U.S. municipal bond market to rebound from an inauspicious start and return about 2% for the six months ended May 31. Sensational headlines in December predicting large-scale municipal defaults were followed by reports of rising state revenues and more focus on fiscal discipline, which encouraged demand amid unusually low supply. As investors sought higher yields without the greater interest rate risk of the longest-maturity bonds, intermediate-term bonds were the market’s sweet spot over the six months.
Against this backdrop, Vanguard California Intermediate-Term Tax-Exempt Fund returned 2.12% for Investor Shares and 2.16% for Admiral Shares. Although the prices of many muni bonds rode a roller coaster during the period, they finished higher in this fund, so its capital return added to interest income. However, the longer-maturity holdings in Vanguard California Long-Term Tax-Exempt Fund did not fully recover from price declines early in the half-year; the fund’s negative capital return pulled its total return for the period down to 1.60% for Investor Shares and 1.64% for Admiral Shares.
2
In a reversal from last year, higher-rated bonds generally outperformed lower-quality securities. The advisor’s high-quality focus helped each fund to outperform its state peer-group average. Compared with the returns of their respective national benchmark indexes, the Intermediate-Term Fund’s result was in line, after allowing for expenses, but the Long-Term Fund lagged. Although it is reasonable to compare the results of a single-state fund to a national index, any such comparison is imperfect and needs to consider many factors—including the state’s relative performance as well as the advisor’s security selection and other portfolio decisions.
As the Federal Reserve kept its target for short-term interest rates anchored near zero, the California Tax-Exempt Money
Market Fund returned a scant 0.06%—ahead of the average return of its state peer group. The fund’s 7-day SEC yield on May 31 was 0.05%, down from six months ago. Yields for the Intermediate-and Long-Term Funds were essentially unchanged. As shown on page 1, each fund’s taxable-equivalent yield was higher than its SEC yield.
Note: The funds are permitted to invest in securities whose income is subject to the alternative minimum tax (AMT). As of May 31, neither the Intermediate-Term Fund nor the Long-Term Fund owned securities that would generate income distributions subject to the AMT, but the Money Market Fund did.
| | | |
| Market Barometer | | | |
| | | | Total Returns |
| | | Periods Ended May 31, 2011 |
| | Six | One | Five Years |
| | Months | Year | (Annualized) |
| Bonds | | | |
| Barclays Capital U.S. Aggregate Bond Index (Broad | | | |
| taxable market) | 1.91% | 5.84% | 6.63% |
| Barclays Capital Municipal Bond Index (Broad tax-exempt | | | |
| market) | 2.04 | 3.18 | 4.78 |
| Citigroup Three-Month U.S. Treasury Bill Index | 0.06 | 0.15 | 1.94 |
| |
| Stocks | | | |
| Russell 1000 Index (Large-caps) | 15.49% | 26.81% | 3.69% |
| Russell 2000 Index (Small-caps) | 17.34 | 29.75 | 4.70 |
| Dow Jones U.S. Total Stock Market Index | 15.20 | 27.10 | 4.07 |
| MSCI All Country World Index ex USA (International) | 13.58 | 29.95 | 3.95 |
| |
| CPI | | | |
| Consumer Price Index | 3.27% | 3.57% | 2.22% |
3
In the broad U.S. bond market, a late-stage change of direction
Through much of the fiscal half-year, bond market returns hovered near—or below—0%. With the economy seeming to find its footing, interest rates rose slowly but steadily. Investors were concerned that accelerating growth might eventually lead to higher inflation, perhaps sooner rather than later. Rising rates put pressure on bond prices.
Later in the period, however, disappointing economic news—including in the housing and labor markets—doused worries about inflation. Perhaps counterintuitively, bad news for the economy spells good news for bonds: As yields retreated, bond prices rallied. For the full six months, the broad U.S. taxable bond market returned about 2%, roughly matching the performance of the municipal market.
Stock prices followed corporate profits higher
During the six months, global stock markets powered past a series of unnerving developments—financial drama in Europe, natural and nuclear disaster in Japan, and geopolitical upheaval in commodity markets. The broad U.S. stock market returned more than 15% for the six months, buoyed by surprising strength in corporate profits. Toward the end of the period, however, a pullback in the manufacturing sector and unexpected weakness in the labor market sounded notes of caution.
| | | |
| Expense Ratios | | | |
| Your Fund Compared With Its Peer Group | | | |
| | Investor | Admiral | Peer Group |
| | Shares | Shares | Average |
| California Tax-Exempt Money Market | | | |
| Fund | 0.17% | — | 0.34% |
| California Intermediate-Term | | | |
| Tax-Exempt Fund | 0.20 | 0.12% | 0.82 |
| California Long-Term Tax-Exempt Fund | 0.20 | 0.12 | 1.02 |
The fund expense ratios shown are from the prospectus dated March 29, 2011, and represent estimated costs for the current fiscal year. For the six months ended May 31, 2011, the funds’ annualized expense ratios were: for the California Tax-Exempt Money Market Fund, 0.17%; for the California Intermediate-Term Tax-Exempt Fund, 0.20% for Investor Shares and 0.12% for Admiral Shares; and for the California Long-Term Tax-Exempt Fund, 0.20% for Investor Shares and 0.12% for Admiral Shares. Peer-group expense ratios are derived from data provided by Lipper Inc. and capture information through year-end 2010.
Peer groups: For the California Tax-Exempt Money Market Fund, California Tax-Exempt Money Market Funds; for the California Intermediate-Term Tax-Exempt Fund, California Intermediate Municipal Debt Funds; for the California Long-Term Tax-Exempt Fund, California Municipal Debt Funds.
4
International stocks followed a similar trajectory, returning almost 14% for the period. In emerging markets and in the most developed markets, strength in local currencies boosted returns for U.S.-based investors.
An inauspicious start capped by a strong finish
As I noted in our annual report to you six months ago, November 2010 was the most volatile month in the municipal market since the 2008 financial crisis. The key forces that converged to create the volatility and lower muni bond prices continued into the first months of the new fiscal year: abundant new-issue supply (through December), concerns about inflation as the economy gathered steam, and anxiety about prospects for municipal bond defaults. (As to the likelihood of widespread defaults, Vanguard believes the dire predictions of some analysts are overblown. For a brief discussion of our view, see the box below).
Several factors contributed to the late-2010 supply surge. Some tax-exempt borrowers that might otherwise have come to market in 2011 accelerated their
|
| Investment insight |
|
| Perspective on default risk |
| Although state tax collections are recovering, worries about default are still making |
| headlines. Here’s why we think the threat is overstated: |
| |
| • Long, strong repayment history. In the 40 years through 2009, the average |
| default rate for investment-grade municipal bonds was a minuscule 0.03%. |
| The rate was 30 times higher for corporate bonds. |
| |
| • Issuers’ ability to pay. Most municipals are revenue bonds—often backed |
| by fees for essential services such as water, sewers, and electricity—or general |
| obligation bonds (backed by the issuer’s full taxing power). Households try to |
| pay utility bills even in tough times, and issuers can raise taxes if need be. |
| |
| • Issuers’ willingness to pay. Issuers who default to avoid debt payments could |
| lose access to funding for everyday operations and capital projects—a poor risk/ |
| reward trade-off, given their typically low debt burdens. For example, across the |
| 50 states, debt secured by state operating resources as a percentage of the state’s |
| economic output currently averages only about 4.5%. Contrary to the impressions |
| created by some of the overheated commentary, California—with a debt burden |
| of just over 5%—is not Greece (where total debt exceeds the value of the nation’s |
| annual output). |
|
| Source: Moody’s Investors Service. For more discussion, see the research paper California Is Not Greece at |
| vanguard.com/jumppage/researchpapers/tab1.html. |
5
plans in anticipation of rising interest rates. Others took advantage of the temporary AMT exemption for private-activity bonds, such as those used to finance airports. And the stampede to issue taxable Build America Bonds (BABs) before the end-of-year deadline flustered an already skittish tax-exempt market, especially the long-term segment. (BABs offered an attractive federal subsidy that lowered issuers’ borrowing costs. The BABs and AMT incentives, part of the 2009 federal stimulus act, expired on December 31.)
This flood of new supply pushed tax-exempt bond prices down, and yields up, in December—the worst month of the past six for the broad municipal market and for California bonds.
Bond returns were also hurt by a significant exodus from tax-exempt funds, which experienced some of the largest—and longest-lasting—cash outflows in decades. Some investors were spooked by headlines warning of defaults and by concerns about higher interest rates (which could depress near-term returns); others wanted to participate in the stock market rally.
Market conditions began improving, however, as winter turned to spring. Most notably, the supply of new bonds dried up. From January through May, nationwide new-issue volume was less than $85 billion, the lowest for this five-month period since 2000. In part, this reflected deferral of nonessential projects because of budget constraints.
Investors seeking to buy scarce new tax-exempt bonds bid up prices. And as the U.S. economic recovery slowed, investors’ concern about rising interest rates receded. At the same time, confidence improved as states and municipalities gained credibility in their budget-balancing efforts. The realization that municipal bonds were attractively valued led to strong returns in April and May, both nationally and in the California funds.
For a discussion of the funds’ management during the period, please see the Advisor’s Report following this letter.
State revenues improve, but local revenues lag
Across most of the nation, state tax revenues have been recovering from the Great Recession but still have not caught up. In California, higher personal income tax payments more than offset lower revenues from both corporate income taxes and sales tax in the first calendar quarter of 2011 compared with 2010, according to preliminary data from The Nelson A. Rockefeller Institute of Government. Early data for the second quarter indicate that combined revenues have continued to grow.
The picture is a bit more complicated at the local level. Typically, state revenues from various sources lag the broad U.S. economy during downturns and recoveries, and local revenues lag state receipts. This time, the slowdown at the local level has
6
been exacerbated by significant reductions in assessed home values that hurt property tax receipts—while demand for many services has risen and the flow of federal stimulus dollars is set to end.
Most local governments have cut expenditures and used some reserves to balance their budgets. While a Chapter 9 bankruptcy filing is a legal possibility, the vast majority of cities and counties are not close to taking that step. For example, the city of Stockton is among the more stressed in the state and its mayor has publicly acknowledged that the city will do everything it can to avoid bankruptcy. Vallejo, however, has not yet emerged from its bankruptcy, filed in 2008.
The challenging immediate and longer-term budget and policy choices that California faces, along with most states, have been well-publicized. As I write this letter, state lawmakers met the June 15 deadline for passing a balanced budget for the new fiscal year that begins on July 1—but their proposal was vetoed by Governor Brown. Discussions are expected to continue, with final adoption anticipated by the June 30 deadline. [Editor’s note: The budget was signed on June 30.]
In late May, one of the major credit rating agencies noted that the state’s financial outlook is cloudy; however, in early June, another major agency reaffirmed its California GO debt rating, noting that the state’s outlook is stable. These outlooks, however, are highly correlated to the budget that the state eventually passes.
Discipline and diversification are more important than ever
Vanguard California Long-Term Tax-Exempt Fund marked its 25th anniversary in April. (The Money Market Fund was launched about a year later; the Intermediate-Term Fund began in 1994.) The funds’ longevity is a testament to the experience and skills of their advisor, Vanguard Fixed Income Group, and the close teamwork among the funds’ portfolio managers, traders, and credit analysts.
We hope that state and local governments will continue to make progress in addressing their long-term fiscal challenges. But optimism is no substitute for rigorous, independent credit analysis. And while we think the grim forecasts about looming defaults have been overstated, we acknowledge that there may be some uptick in defaults—especially among smaller issuers and less creditworthy projects, which our screening process helps us weed out.
7
As always, we believe investors will be well-served by holding a balanced portfolio of low-cost mutual funds that is diversified across and within asset classes. For California investors in higher tax brackets, the Vanguard California Tax-Exempt Funds can play an important role in such a portfolio, providing exemption from state as well as federal income taxes.
Sincerely,
F. William McNabb III
Chairman and Chief Executive Officer
June 16, 2011
8
| | | | |
| Your Fund’s Performance at a Glance | | | | |
| November 30, 2010 , Through May 31, 2011 | | | | |
| | | | Distributions Per Share |
| | Starting | Ending | Income | Capital |
| | Share Price | Share Price | Dividends | Gains |
| Vanguard California Tax-Exempt Money Market | | | | |
| Fund | $1.00 | $1.00 | $0.001 | $0.000 |
| Vanguard California Intermediate-Term | | | | |
| Tax-Exempt Fund | | | | |
| Investor Shares | $10.93 | $10.95 | $0.206 | $0.000 |
| Admiral Shares | 10.93 | 10.95 | 0.211 | 0.000 |
| Vanguard California Long-Term Tax-Exempt | | | | |
| Fund | | | | |
| Investor Shares | $11.01 | $10.94 | $0.238 | $0.000 |
| Admiral Shares | 11.01 | 10.94 | 0.243 | 0.000 |
9
Advisor’s Report
For the fiscal half-year ended May 31, 2011, Vanguard California Tax-Exempt Money Market Fund returned 0.06%, as the Federal Reserve continued to keep short-term interest rates near zero. By comparison, the average return of peer-group state funds was 0%. The California Intermediate-Term Tax-Exempt Fund returned 2.12% for Investor Shares and 2.16% for Admiral Shares, in line with its national benchmark index (which incurs no expenses) but ahead of the average return of competing state funds. The California Long-Term Tax-Exempt Fund returned 1.60% for Investor Shares and 1.64% for Admiral Shares, trailing its national benchmark but outpacing the average return of peer-group funds.
The investment environment
The funds successfully navigated a particularly challenging investment environment in recent months, a volatile period for the municipal bond market because of credit, market, and supply concerns.
The period began with yields pushing higher and prices falling (bond prices and yields move inversely). For example, from November 30 to January 31, the yields of 10-year AAA general-obligation tax-exempt bonds at the national level rose by about one-half of a percentage point, then declined by more than that from February through May. Yields on comparable 30-year bonds followed a similar pattern, but ended the period a bit higher than
| | |
| Yields of Tax-Exempt Municipal Bonds | | |
| (AAA-Rated General-Obligation Issues) | | |
| | November 30, | May 31, |
| Maturity | 2010 | 2011 |
| 2 years | 0.60% | 0.44% |
| 5 years | 1.36 | 1.23 |
| 10 years | 2.79 | 2.65 |
| 30 years | 4.28 | 4.30 |
| Source: Vanguard. | | |
10
where they began. These are large moves in a very short time, relative to the historical experience of this market.
Concurrent with the market volatility was a tide of withdrawals from tax-exempt bond funds, Vanguard funds included, that began in November 2010 and peaked in January 2011 as yields spiked. Outflows then began to ease substantially.
The price and redemption trends early on were consequences of a variety of market forces, including investors’ concern about the fiscal struggles of state and local governments. That worry was stoked by gloomy media reports in the early part of the reporting period, including, quite frankly, some commentary we consider irresponsible. The strong stock market rally also drew some investors away from bonds.
More upward pressure on long-term yields came from investors who were cautious about the outlook for inflation, as well as from a flood of Build America Bonds (BABs)—including those from California issuers, the largest source of BABs—that came to market before the program ended on December 31. Indeed, almost one-quarter of all BABs nationwide were issued during the final three months of 2010. (Our tax-exempt funds do not invest in these bonds because they are taxable.) With the end of the BABs program, there was an expectation that the supply of traditional munis would get a boost. This had the immediate effect of pushing up yields, especially those of long-term bonds.
At the other end of the yield spectrum, money market funds remained anchored to flat returns, a result of the Federal Reserve’s near-zero target for the shortest-term interest rates. After more than two years of this policy, many muni investors have turned to short-term and intermediate-term bonds, especially those in the 5- to 7-year portion of the yield curve. (Intermediate-term bonds were top performers during the six-month period.) We don’t expect the Fed to raise its target federal funds rate before the second half of 2012. The combined effect of near-zero short-term rates and upward pressure on long-term rates has produced one of the steepest yield curves in years.
The credit environment
State and local governments continued the difficult process of striking a balance between spending needs and lower tax revenues. The impact of both has been magnified by the severity of the Great Recession: Because of slow growth and high unemployment, people have required more services while tax revenues of all kinds have shrunk.
In the face of these challenges, states and municipalities have been taking a variety of difficult steps to bring spending and revenues in line. For example, state and local governments cut payrolls by almost 300,000 over the 12 months ended May 31, even while private-sector employment grew. Meanwhile, tax revenues have begun to rise nationwide—for the fifth straight quarter as of March 31, according to preliminary results from The
11
Nelson A. Rockefeller Institute of Government—although they still have not recovered to prerecession levels. The financial stress has in many cases also turned serious attention to longer-term concerns, such as the underfunding of retirement benefits.
As noted in more detail in the Chairman’s Letter (see especially the Investment Insight box on page 5), we’re confident that state and local governments will be able to manage their way through their financial difficulties. At the same time, it wouldn’t be surprising for a few smaller issuers to run into trouble, and we acknowledge that this will be a challenging process for some time.
Management of the funds
Our investment strategy during the half-year reflected our assessment of several important developments. These included a steep yield curve, ongoing fiscal challenges faced by tax-exempt issuers, less liquidity in the market, and short supply.
We have positioned the Intermediate-and Long-Term Funds to benefit whenever the Federal Reserve begins to raise its target rate, which will lift the short end of the yield curve. The long end is likely to experience less volatility—resulting in a somewhat flatter and more typically shaped yield curve—because the market has already priced in its expectation of eventual rate increases.
We continue to favor bonds that rely on revenues from essential services, such as providing electricity and water, to fund payments. Our credit analysts, who monitor the financial condition of states and municipalities, keep a constant eye on the credit quality of the portfolios and recommend repositioning when merited.
For some time, we have prepared for the possibility of heavy redemptions so that long-term shareholders would not be adversely affected by them. We have done so by dedicating a portion of the assets of the Intermediate- and Long-Term Funds, across the yield curve, to holdings that are liquid enough to be tapped if needed to meet redemptions. (They can also be tapped to take advantage of good investment opportunities.)
Liquidity is also an issue because of the structure of the municipal bond market. The 2008 financial crisis reduced the number of broker-dealers who deal with institutional investors, putting stress on these counterparties’ ability to provide much-needed liquidity when necessary. As a result, part of our overall decision to purchase a security is an evaluation of how easy it will be to trade it.
12
A supportive factor for prices has been the supply of traditional municipal bonds during the first half of fiscal 2011, which, counter to expectations, has been unusually light. In California, for example, about $9 billion in traditional municipal bonds were issued in the six months ended May 31, around 50% less than a year earlier. Fiscal caution among borrowers nationwide, including the state of California, who are taking another look at capital projects as they strive to balance their budgets, may also be a factor.
The decline in trades resulting from lower supply made it difficult for market participants to establish market-clearing prices during the period, presenting a challenge that was met successfully by our talented team of traders. Looking forward, we’re confident that we can tackle whatever new challenges lie ahead because of the skill and dedication of our experienced portfolio managers, traders, and credit analysts. Together, they bring to the task a high level of rigor and discipline that we believe will continue to serve our shareholders well.
Mathew M. Kiselak, Principal, Portfolio Manager
John M. Carbone, Prinicipal, Portfolio Manager
Pamela Wisehaupt Tynan, Principal, Head of Municipal Money Market Funds
Christopher W. Alwine, CFA, Principal, Head of Municipal Bond Funds
Vanguard Fixed Income Group
June 22, 2011
13
California Tax-Exempt Money Market Fund
Fund Profile
As of May 31, 2011
| |
| Financial Attributes | |
| Ticker Symbol | VCTXX |
| Expense Ratio1 | 0.17% |
| 7-Day SEC Yield | 0.05% |
| Average Weighted | |
| Maturity | 29 days |
| |
| Distribution by Credit Quality (% of portfolio) |
| First Tier | 100.0% |
For information about these ratings, see the Glossary entry for Credit Quality.
1 The expense ratio shown is from the prospectus dated March 29, 2011, and represents estimated costs for the current fiscal year. For the six months ended May 31, 2011, the annualized expense ratio was 0.17%.
14
California Tax-Exempt Money Market Fund
Performance Summary
Investment returns will fluctuate. All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the fund. (Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end, visit our website at vanguard.com/performance.) The returns shown do not reflect taxes that a shareholder would pay on fund distributions. An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the value of your investment at $1 per share, it is possible to lose money by investing in the fund. The fund’s 7-day SEC yield reflects its current earnings more closely than do the average annual returns.
| | |
| Fiscal-Year Total Returns (%): November 30, 2000, Through May 31, 2011 | |
| | | CA Tax-Exempt |
| | | Money Mkt |
| | | Funds Avg |
| Fiscal Year | Total Returns | Total Returns |
| 2001 | 2.57% | 2.17% |
| 2002 | 1.33 | 0.92 |
| 2003 | 0.91 | 0.54 |
| 2004 | 1.05 | 0.60 |
| 2005 | 2.17 | 1.70 |
| 2006 | 3.24 | 2.78 |
| 2007 | 3.55 | 3.06 |
| 2008 | 2.21 | 1.81 |
| 2009 | 0.37 | 0.17 |
| 2010 | 0.11 | 0.01 |
| 2011 | 0.06 | 0.00 |
7-day SEC yield (5/31/2011): 0.05%
California Tax-Exempt Money Market Funds Average: Derived from data provided by Lipper Inc.
Note: For 2011, performance data reflect the six months ended May 31, 2011.
Average Annual Total Returns: Periods Ended March 31, 2011
This table presents returns through the latest calendar quarter—rather than through the end of the fiscal period.
Securities and Exchange Commission rules require that we provide this information.
| | | | |
| | Inception | One | Five | Ten |
| | Date | Year | Years | Years |
| California Tax-Exempt Money | | | | |
| Market Fund | 6/1/1987 | 0.12% | 1.70% | 1.65% |
See Financial Highlights for dividend information.
15
California Tax-Exempt Money Market Fund
Financial Statements (unaudited)
Statement of Net Assets
As of May 31, 2011
The fund reports a complete list of its holdings in various monthly and quarterly regulatory filings. The fund publishes its holdings on a monthly basis at vanguard.com and files them with the Securities and Exchange Commission on Form N-MFP. The fund’s Form N-MFP filings become public 60 days after the relevant month-end, and may be viewed at sec.gov or via a link on the “Portfolio Holdings” page on vanguard.com. For the second and fourth fiscal quarters, the lists appear in the fund’s semiannual and annual reports to shareholders. For the first and third fiscal quarters, the fund files the lists with the SEC on Form N-Q. Shareholders can look up the fund’s Forms N-Q on the SEC’s website at sec.gov. Forms N-Q may also be reviewed and copied at the SEC’s Public Reference Room (see the back cover of this report for further information).
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value |
| | Coupon | Date | ($000) | ($000) |
| Tax-Exempt Municipal Bonds (99.7%) | | | | |
| California (99.6%) | | | | |
| ABAG Finance Authority for Nonprofit Corps. | | | | |
| California Revenue (Institute for | | | | |
| Defense Analyses) VRDO | 0.160% | 6/7/11 LOC | 11,945 | 11,945 |
| ABAG Finance Authority for Nonprofit Corps. | | | | |
| California Revenue (Public Policy Institute) VRDO | 0.210% | 6/7/11 LOC | 12,705 | 12,705 |
| Anaheim CA Housing Finance Agency Home | | | | |
| Mortgage Revenue VRDO | 0.190% | 6/7/11 LOC | 5,485 | 5,485 |
| 1 Anaheim CA Public Financing Authority Lease | | | | |
| Revenue (Anaheim Public | | | | |
| Improvements Project) TOB VRDO | 0.170% | 6/7/11 LOC | 47,240 | 47,240 |
| 1 Bay Area Toll Authority California Toll Bridge | | | | |
| Revenue (San Francisco Bay Area) TOB PUT | 0.430% | 7/28/11 | 9,865 | 9,865 |
| 1 Bay Area Toll Authority California Toll Bridge | | | | |
| Revenue (San Francisco Bay Area) TOB VRDO | 0.180% | 6/7/11 | 41,910 | 41,910 |
| 1 Bay Area Toll Authority California Toll Bridge | | | | |
| Revenue (San Francisco Bay Area) TOB VRDO | 0.180% | 6/7/11 | 3,200 | 3,200 |
| 1 Bay Area Toll Authority California Toll Bridge | | | | |
| Revenue (San Francisco Bay Area) TOB VRDO | 0.190% | 6/7/11 | 7,500 | 7,500 |
| Bay Area Toll Authority California Toll Bridge | | | | |
| Revenue (San Francisco Bay Area) VRDO | 0.120% | 6/7/11 LOC | 12,500 | 12,500 |
| 1 Blackrock Muniyield California Fund Inc VRDP | | | | |
| VRDO | 0.380% | 6/7/11 LOC | 15,000 | 15,000 |
| 1 Blackrock Muniyield California Quality Fund | | | | |
| VRDP VRDO | 0.380% | 6/7/11 LOC | 30,000 | 30,000 |
| California Department of Water Resources | | | | |
| Power Supply Revenue | 5.375% | 5/1/12 (Prere.) | 30,000 | 31,668 |
| California Department of Water Resources | | | | |
| Power Supply Revenue VRDO | 0.130% | 6/7/11 | 19,300 | 19,300 |
| California Department of Water Resources | | | | |
| Power Supply Revenue VRDO | 0.140% | 6/7/11 | 6,200 | 6,200 |
| California Department of Water Resources | | | | |
| Power Supply Revenue VRDO | 0.140% | 6/7/11 | 18,500 | 18,500 |
| California Economic Recovery Bonds GO PUT | 5.000% | 7/1/11 (Prere.) | 32,000 | 32,123 |
16
California Tax-Exempt Money Market Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value |
| | Coupon | Date | ($000) | ($000) |
| California Educational Facilities Authority Revenue | | | | |
| (California Institute of Technology) VRDO | 0.150% | 6/7/11 | 34,800 | 34,800 |
| 1 California Educational Facilities Authority Revenue | | | | |
| (Loyola Marymount University) TOB VRDO | 0.170% | 6/7/11 LOC | 3,998 | 3,998 |
| California Educational Facilities Authority Revenue | | | | |
| (Stanford University) CP | 0.250% | 6/17/11 | 18,482 | 18,482 |
| California Educational Facilities Authority Revenue | | | | |
| (Stanford University) CP | 0.350% | 11/3/11 | 40,000 | 40,000 |
| California Educational Facilities Authority Revenue | | | | |
| (Stanford University) CP | 0.350% | 11/17/11 | 25,000 | 25,000 |
| 1 California Educational Facilities Authority Revenue | | | | |
| (Stanford University) TOB PUT | 0.430% | 8/11/11 | 37,280 | 37,280 |
| 1 California Educational Facilities Authority Revenue | | | | |
| (Stanford University) TOB VRDO | 0.170% | 6/7/11 | 4,460 | 4,460 |
| 1 California Educational Facilities Authority Revenue | | | | |
| (Stanford University) TOB VRDO | 0.180% | 6/7/11 | 7,150 | 7,150 |
| California Educational Facilities Authority Revenue | | | | |
| (University of San Francisco) VRDO | 0.150% | 6/7/11 LOC | 6,750 | 6,750 |
| 1 California Educational Facilities Authority Revenue | | | | |
| (University of Southern California) TOB PUT | 0.360% | 11/17/11 | 15,045 | 15,045 |
| 1 California Educational Facilities Authority Revenue | | | | |
| (University of Southern California) TOB VRDO | 0.180% | 6/7/11 | 4,135 | 4,135 |
| California GO | 5.000% | 6/1/11 (Prere.) | 7,375 | 7,375 |
| California GO | 5.000% | 2/1/12 (Prere.) | 20,000 | 20,616 |
| California GO | 5.250% | 4/1/12 (Prere.) | 9,835 | 10,239 |
| California Health Facilities Financing Authority | | | | |
| Revenue (Adventist Health System/West) VRDO | 0.100% | 6/1/11 LOC | 4,800 | 4,800 |
| California Health Facilities Financing Authority | | | | |
| Revenue (Children’s Hospital of Orange County) | | | | |
| VRDO | 0.150% | 6/7/11 LOC | 7,100 | 7,100 |
| California Health Facilities Financing Authority | | | | |
| Revenue (Children’s Hospital of Orange County) | | | | |
| VRDO | 0.150% | 6/7/11 LOC | 13,950 | 13,950 |
| California Health Facilities Financing Authority | | | | |
| Revenue (Children’s Hospital of Orange County) | | | | |
| VRDO | 0.150% | 6/7/11 LOC | 42,900 | 42,900 |
| 1 California Health Facilities Financing Authority | | | | |
| Revenue (Kaiser Foundation Hospitals) TOB PUT | 0.220% | 9/1/11 LOC | 20,000 | 20,000 |
| California Health Facilities Financing Authority | | | | |
| Revenue (Lucile Salter Packard Children’s | | | | |
| Hospital at Stanford) VRDO | 0.130% | 6/7/11 | 18,450 | 18,450 |
| California Health Facilities Financing Authority | | | | |
| Revenue (Lucile Salter Packard Children’s | | | | |
| Hospital at Stanford) VRDO | 0.140% | 6/7/11 | 5,850 | 5,850 |
| California Health Facilities Financing Authority | | | | |
| Revenue (Lucile Salter Packard Children’s | | | | |
| Hospital at Stanford) VRDO | 0.140% | 6/7/11 | 10,250 | 10,250 |
| California Health Facilities Financing Authority | | | | |
| Revenue (Memorial Health Services) VRDO | 0.190% | 6/7/11 | 61,275 | 61,275 |
| California Health Facilities Financing Authority | | | | |
| Revenue (Scripps Health) VRDO | 0.120% | 6/7/11 LOC | 13,490 | 13,490 |
| California Health Facilities Financing Authority | | | | |
| Revenue (Stanford Hospital) PUT | 3.450% | 6/15/11 | 10,000 | 10,011 |
17
California Tax-Exempt Money Market Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value |
| | Coupon | Date | ($000) | ($000) |
| 1 California Health Facilities Financing Authority | | | | |
| Revenue (Sutter Health) TOB VRDO | 0.180% | 6/7/11 | 6,700 | 6,700 |
| 1 California Health Facilities Financing Authority | | | | |
| Revenue (Sutter Health) TOB VRDO | 0.180% | 6/7/11 | 5,695 | 5,695 |
| California Housing Finance Agency Home | | | | |
| Mortgage Revenue VRDO | 0.160% | 6/7/11 LOC | 31,200 | 31,200 |
| California Housing Finance Agency Home | | | | |
| Mortgage Revenue VRDO | 0.160% | 6/7/11 LOC | 8,680 | 8,680 |
| California Housing Finance Agency Home | | | | |
| Mortgage Revenue VRDO | 0.160% | 6/7/11 LOC | 50,375 | 50,375 |
| California Housing Finance Agency Home | | | | |
| Mortgage Revenue VRDO | 0.170% | 6/7/11 LOC | 10,365 | 10,365 |
| California Housing Finance Agency Home | | | | |
| Mortgage Revenue VRDO | 0.170% | 6/7/11 LOC | 13,900 | 13,900 |
| California Housing Finance Agency Home | | | | |
| Mortgage Revenue VRDO | 0.180% | 6/7/11 LOC | 16,300 | 16,300 |
| California Housing Finance Agency Multifamily | | | | |
| Housing Revenue VRDO | 0.150% | 6/7/11 LOC | 9,100 | 9,100 |
| California Infrastructure & Economic Development | | | | |
| Bank Revenue (Academy of Motion Picture Arts | | | | |
| & Sciences Obligated Group) VRDO | 0.150% | 6/7/11 LOC | 35,000 | 35,000 |
| California Infrastructure & Economic Development | | | | |
| Bank Revenue (Academy of Sciences) VRDO | 0.100% | 6/1/11 LOC | 14,925 | 14,925 |
| California Infrastructure & Economic Development | | | | |
| Bank Revenue (American National Red Cross) | | | | |
| VRDO | 0.140% | 6/7/11 LOC | 14,575 | 14,575 |
| 1 California Infrastructure & Economic Development | | | | |
| Bank Revenue (Bay Area Toll Bridges | | | | |
| Seismic Retrofit) TOB VRDO | 0.150% | 6/1/11 (ETM) | 21,855 | 21,855 |
| California Infrastructure & Economic Development | | | | |
| Bank Revenue (Buck Institute for Age Research) | | | | |
| VRDO | 0.150% | 6/7/11 LOC | 28,800 | 28,800 |
| California Infrastructure & Economic Development | | | | |
| Bank Revenue (Los Angeles County Museum | | | | |
| of Natural History Foundation) VRDO | 0.100% | 6/1/11 LOC | 15,000 | 15,000 |
| California Infrastructure & Economic Development | | | | |
| Bank Revenue (Prinsco Inc. Project) VRDO | 0.320% | 6/7/11 LOC | 7,150 | 7,150 |
| California Infrastructure & Economic Development | | | | |
| Bank Revenue (SRI International) VRDO | 0.170% | 6/7/11 LOC | 5,000 | 5,000 |
| California Infrastructure & Economic Development | | | | |
| Bank Revenue (SRI International) VRDO | 0.170% | 6/7/11 LOC | 4,385 | 4,385 |
| California Municipal Finance Authority Revenue | | | | |
| (Notre Dame High School, San Jose) VRDO | 0.260% | 6/7/11 LOC | 5,720 | 5,720 |
| California Municipal Finance Authority Revenue | | | | |
| (Westmont College) VRDO | 0.180% | 6/7/11 LOC | 13,500 | 13,500 |
| 1 California Public Works Board Lease Revenue | | | | |
| (Regents of The University of California) | | | | |
| TOB VRDO | 0.180% | 6/7/11 | 9,875 | 9,875 |
| California State University Institute CP | 0.250% | 8/1/11 LOC | 8,643 | 8,643 |
| California State University Institute CP | 0.250% | 8/1/11 LOC | 2,285 | 2,285 |
| 1 California State University Revenue Systemwide | | | | |
| TOB VRDO | 0.330% | 6/7/11 (4) | 20,475 | 20,475 |
| California Statewide Communities Development | | | | |
| Authority Gas Supply Revenue VRDO | 0.170% | 6/7/11 | 80,000 | 80,000 |
18
California Tax-Exempt Money Market Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value |
| | Coupon | Date | ($000) | ($000) |
| California Statewide Communities Development | | | | |
| Authority Multifamily Housing Revenue | | | | |
| (Canyon Springs Apartments Project) VRDO | 0.210% | 6/7/11 LOC | 10,105 | 10,105 |
| California Statewide Communities Development | | | | |
| Authority Multifamily Housing Revenue | | | | |
| (Knolls Apartments) VRDO | 0.180% | 6/7/11 LOC | 12,715 | 12,715 |
| California Statewide Communities Development | | | | |
| Authority Multifamily Housing Revenue | | | | |
| (Ridgeway Apartments) VRDO | 0.130% | 6/7/11 LOC | 4,100 | 4,100 |
| California Statewide Communities Development | | | | |
| Authority Multifamily Housing Revenue | | | | |
| (Village Green Apartments) VRDO | 0.180% | 6/7/11 LOC | 5,800 | 5,800 |
| California Statewide Communities Development | | | | |
| Authority Revenue (Concordia University | | | | |
| Irvine Project) VRDO | 0.150% | 6/1/11 LOC | 15,850 | 15,850 |
| California Statewide Communities Development | | | | |
| Authority Revenue (Kaiser Permanente) PUT | 0.480% | 6/1/12 | 12,500 | 12,500 |
| California Statewide Communities Development | | | | |
| Authority Revenue (Kaiser Permanente) PUT | 0.480% | 6/1/12 | 12,500 | 12,500 |
| California Statewide Communities Development | | | | |
| Authority Revenue (Kaiser Permanente) VRDO | 0.160% | 6/7/11 | 4,800 | 4,800 |
| California Statewide Communities Development | | | | |
| Authority Revenue (Rady Children’s Hospital - | | | | |
| San Diego) VRDO | 0.090% | 6/1/11 LOC | 5,000 | 5,000 |
| California Statewide Communities Development | | | | |
| Authority Revenue (Rady Children’s Hospital - | | | | |
| San Diego) VRDO | 0.140% | 6/7/11 LOC | 25,000 | 25,000 |
| 1 California Statewide Communities Development | | | | |
| Authority Revenue (Sutter Health) TOB VRDO | 0.190% | 6/7/11 | 5,500 | 5,500 |
| California Statewide Communities Development | | | | |
| Authority Revenue VRDO | 0.130% | 6/7/11 LOC | 12,250 | 12,250 |
| Castaic Lake CA Water Agency Revenue | | | | |
| COP VRDO | 0.130% | 6/7/11 LOC | 19,975 | 19,975 |
| 1 Central Basin Municipal Water District California | | | | |
| COP TOB VRDO | 0.190% | 6/7/11 (4) | 7,500 | 7,500 |
| Cerritos CA Community College District GO BAN | 2.000% | 4/30/12 | 7,000 | 7,091 |
| 1 Cerritos CA Community College District | | | | |
| GO TOB VRDO | 0.180% | 6/7/11 | 7,845 | 7,845 |
| 1 Chabot-Las Positas Community College District | | | | |
| GO TOB VRDO | 0.180% | 6/7/11 | 5,000 | 5,000 |
| 1 Chino Basin CA Regional Financing Authority | | | | |
| Revenue (Inland Empire Utilities Agency) | | | | |
| TOB VRDO | 0.170% | 6/7/11 | 10,775 | 10,775 |
| Chula Vista CA Multifamily Housing Revenue | | | | |
| (Teresina Apartments) VRDO | 0.180% | 6/7/11 LOC | 18,970 | 18,970 |
| City of San Jose CA Financing Authority Lease | | | | |
| Revenue CP | 0.250% | 6/27/11 LOC | 29,137 | 29,137 |
| 1 Contra Costa CA Community College District | | | | |
| GO TOB VRDO | 0.180% | 6/7/11 | 5,110 | 5,110 |
| 1 Contra Costa CA Community College District | | | | |
| GO TOB VRDO | 0.270% | 6/7/11 | 5,200 | 5,200 |
| 1 Contra Costa CA Transportation Authority | | | | |
| Sales Tax Revenue TOB VRDO | 0.180% | 6/7/11 | 20,000 | 20,000 |
19
California Tax-Exempt Money Market Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value |
| | Coupon | Date | ($000) | ($000) |
| Contra Costa County CA Multifamily Housing | | | | |
| Revenue (Park Regency) VRDO | 0.180% | 6/7/11 LOC | 47,200 | 47,200 |
| Contra Costa County CA Multifamily Housing | | | | |
| Revenue (Pleasant Hill BART Transit Village | | | | |
| Apartments Project) VRDO | 0.190% | 6/7/11 LOC | 43,800 | 43,800 |
| 1 Desert CA Community College District | | | | |
| GO TOB VRDO | 0.180% | 6/7/11 | 12,375 | 12,375 |
| East Bay CA Municipal Utility District Waste | | | | |
| Water System Revenue PUT | 0.200% | 2/1/12 | 7,800 | 7,800 |
| East Bay CA Municipal Utility District Water | | | | |
| System Revenue (Extendable) CP | 0.320% | 8/4/11 | 13,500 | 13,500 |
| East Bay CA Municipal Utility District Water | | | | |
| System Revenue PUT | 0.210% | 3/1/12 | 33,000 | 33,000 |
| Eastern California Municipal Water District | | | | |
| Water & Sewer COP | 5.000% | 7/1/11 (Prere.) | 21,370 | 21,453 |
| 1 Eastern California Municipal Water District | | | | |
| Water & Sewer COP TOB VRDO | 0.180% | 6/7/11 | 1,590 | 1,590 |
| 1 Eastern California Municipal Water District | | | | |
| Water & Sewer Revenue TOB VRDO | 0.190% | 6/7/11 | 3,940 | 3,940 |
| Eastern California Municipal Water District | | | | |
| Water & Sewer Revenue VRDO | 0.120% | 6/7/11 | 27,000 | 27,000 |
| Eastern California Municipal Water District | | | | |
| Water & Sewer Revenue VRDO | 0.130% | 6/7/11 | 34,000 | 34,000 |
| Eastern California Municipal Water District | | | | |
| Water & Sewer Revenue VRDO | 0.140% | 6/7/11 | 20,400 | 20,400 |
| Escondido CA Community Development | | | | |
| (Escondido Promenade Project) COP VRDO | 0.200% | 6/7/11 LOC | 9,400 | 9,400 |
| Escondido CA Community Development | | | | |
| Multifamily Revenue | | | | |
| (Heritage Park Apartments) VRDO | 0.190% | 6/7/11 LOC | 4,250 | 4,250 |
| Fremont CA COP VRDO | 0.110% | 6/7/11 LOC | 9,645 | 9,645 |
| Fremont CA COP VRDO | 0.160% | 6/7/11 LOC | 5,000 | 5,000 |
| Fresno County CA TRAN | 2.000% | 6/30/11 | 50,000 | 50,064 |
| Garden Grove CA Housing Authority Multifamily | | | | |
| Housing Revenue (Valley View Senior | | | | |
| Villas Project) VRDO | 0.200% | 6/7/11 LOC | 9,100 | 9,100 |
| 1 Grossmont CA Healthcare District Revenue | | | | |
| TOB VRDO | 0.180% | 6/7/11 | 10,200 | 10,200 |
| 1 Grossmont CA Union High School District | | | | |
| GO TOB VRDO | 0.170% | 6/7/11 | 25,945 | 25,945 |
| Hayward CA Housing Authority Multifamily | | | | |
| Housing Revenue (Barrington Hills Apartments) | | | | |
| VRDO | 0.150% | 6/7/11 LOC | 6,150 | 6,150 |
| Hemet CA Unified School District COP VRDO | 0.150% | 6/7/11 LOC | 10,000 | 10,000 |
| Irvine CA Assessment District No. 05-21 | | | | |
| Improvement Revenue (Northwest Irvine) VRDO | 0.130% | 6/1/11 LOC | 1,800 | 1,800 |
| Irvine CA Assessment District No. 97-17 | | | | |
| Improvement Revenue VRDO | 0.130% | 6/1/11 LOC | 4,300 | 4,300 |
| Kern County CA TRAN | 1.500% | 6/30/11 | 42,200 | 42,234 |
| Livermore CA COP VRDO | 0.160% | 6/7/11 LOC | 14,500 | 14,500 |
| Livermore CA Redevelopment Agency | | | | |
| Multi-Family Housing Revenue (Livermore | | | | |
| Independent Senior Apartments) VRDO | 0.150% | 6/7/11 LOC | 6,640 | 6,640 |
20
California Tax-Exempt Money Market Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value |
| | Coupon | Date | ($000) | ($000) |
| Livermore CA Redevelopment Agency Multi-Family | | | | |
| Housing Revenue (Richards Manor) VRDO | 0.190% | 6/7/11 LOC | 4,770 | 4,770 |
| 1 Long Beach CA Harbor Revenue TOB VRDO | 0.370% | 6/7/11 | 15,905 | 15,905 |
| Long Beach CA TRAN | 2.000% | 9/30/11 | 20,000 | 20,107 |
| Long Beach CA Water Revenue CP | 0.300% | 8/2/11 | 11,000 | 11,000 |
| 1 Los Angeles CA Community College District | | | | |
| GO TOB VRDO | 0.180% | 6/7/11 | 16,130 | 16,130 |
| 1 Los Angeles CA Community College District | | | | |
| GO TOB VRDO | 0.180% | 6/7/11 | 5,200 | 5,200 |
| Los Angeles CA Community Redevelopment | | | | |
| Agency Multifamily Housing Revenue | | | | |
| (Hollywood & Vine Apartments) VRDO | 0.170% | 6/7/11 LOC | 25,000 | 25,000 |
| 1 Los Angeles CA Department of Airports | | | | |
| International Airport Revenue TOB VRDO | 0.160% | 6/7/11 | 14,000 | 14,000 |
| 1 Los Angeles CA Department of Airports | | | | |
| International Airport Revenue TOB VRDO | 0.170% | 6/7/11 | 5,530 | 5,530 |
| 1 Los Angeles CA Department of Airports | | | | |
| International Airport Revenue TOB VRDO | 0.180% | 6/7/11 | 7,440 | 7,440 |
| 1 Los Angeles CA Department of Airports | | | | |
| International Airport Revenue TOB VRDO | 0.180% | 6/7/11 | 5,000 | 5,000 |
| 1 Los Angeles CA Department of Airports | | | | |
| International Airport Revenue TOB VRDO | 0.260% | 6/7/11 | 18,880 | 18,880 |
| 1 Los Angeles CA Department of Airports | | | | |
| International Airport Revenue TOB VRDO | 0.260% | 6/7/11 | 7,975 | 7,975 |
| 1 Los Angeles CA Department of Water | | | | |
| & Power Revenue TOB VRDO | 0.170% | 6/7/11 LOC | 10,290 | 10,290 |
| 1 Los Angeles CA Department of Water | | | | |
| & Power Revenue TOB VRDO | 0.180% | 6/7/11 | 7,495 | 7,495 |
| Los Angeles CA Department of Water | | | | |
| & Power Revenue VRDO | 0.110% | 6/7/11 | 86,500 | 86,500 |
| Los Angeles CA Department of Water | | | | |
| & Power Revenue VRDO | 0.130% | 6/7/11 | 7,675 | 7,675 |
| Los Angeles CA Department of Water | | | | |
| & Power Revenue VRDO | 0.130% | 6/7/11 | 35,015 | 35,015 |
| Los Angeles CA Department of Water | | | | |
| & Power Revenue VRDO | 0.160% | 6/7/11 | 32,400 | 32,400 |
| Los Angeles CA Harbor Department Revenue CP | 0.330% | 8/10/11 | 10,000 | 10,000 |
| 1 Los Angeles CA Harbor TOB VRDO | 0.180% | 6/7/11 | 4,020 | 4,020 |
| Los Angeles CA Multifamily Housing Revenue | | | | |
| (Beverly Park Apartments) VRDO | 0.170% | 6/7/11 LOC | 15,500 | 15,500 |
| Los Angeles CA Multifamily Housing Revenue | | | | |
| (Fountain Park Project) VRDO | 0.180% | 6/7/11 LOC | 40,000 | 40,000 |
| Los Angeles CA Multifamily Housing Revenue | | | | |
| (Queen Portfolio Apartments Project) VRDO | 0.190% | 6/7/11 LOC | 6,895 | 6,895 |
| Los Angeles CA Multifamily Housing Revenue | | | | |
| (San Regis Project) VRDO | 0.180% | 6/7/11 LOC | 23,600 | 23,600 |
| Los Angeles CA Municipal Improvement Corp. | | | | |
| Lease Revenue CP | 0.300% | 6/8/11 LOC | 3,503 | 3,503 |
| Los Angeles CA Municipal Improvement Corp. | | | | |
| Lease Revenue CP | 0.290% | 8/23/11 LOC | 30,500 | 30,500 |
| Los Angeles CA Municipal Improvement Corp. | | | | |
| Lease Revenue CP | 0.270% | 9/8/11 LOC | 10,000 | 10,000 |
| 1 Los Angeles CA Unified School District | | | | |
| GO TOB VRDO | 0.180% | 6/7/11 | 6,660 | 6,660 |
21
California Tax-Exempt Money Market Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value |
| | Coupon | Date | ($000) | ($000) |
| 1 Los Angeles CA Unified School District | | | | |
| GO TOB VRDO | 0.180% | 6/7/11 | 9,995 | 9,995 |
| 1 Los Angeles CA Unified School District | | | | |
| GO TOB VRDO | 0.200% | 6/7/11 | 9,000 | 9,000 |
| 1 Los Angeles CA Wastewater System Revenue | | | | |
| TOB VRDO | 0.180% | 6/7/11 | 25,000 | 25,000 |
| 1 Los Angeles CA Wastewater System Revenue | | | | |
| TOB VRDO | 0.180% | 6/7/11 | 7,500 | 7,500 |
| Los Angeles CA Wastewater System Revenue | | | | |
| VRDO | 0.180% | 6/7/11 LOC | 11,670 | 11,670 |
| 1 Los Angeles California Harbor | | | | |
| Department Revenue TOB VRDO | 0.180% | 6/7/11 | 5,395 | 5,395 |
| Los Angeles County CA Metropolitan | | | | |
| Transportation Authority Sales Tax Revenue | 5.000% | 7/1/11 | 4,000 | 4,015 |
| Los Angeles County CA Metropolitan | | | | |
| Transportation Authority Sales Tax Revenue CP | 0.230% | 8/9/11 LOC | 10,406 | 10,406 |
| Los Angeles County CA Metropolitan | | | | |
| Transportation Authority Sales Tax Revenue | | | | |
| VRDO | 0.120% | 6/1/11 | 65,125 | 65,125 |
| Los Angeles County CA Metropolitan | | | | |
| Transportation Authority Sales Tax Revenue | | | | |
| VRDO | 0.120% | 6/1/11 | 40,590 | 40,590 |
| 1 Los Angeles County CA Sanitation District | | | | |
| TOB VRDO | 0.170% | 6/7/11 LOC | 10,510 | 10,510 |
| Los Angeles County CA TRAN | 2.000% | 6/30/11 | 25,000 | 25,023 |
| 1 Los Angeles County CA Unified School District | | | | |
| GO TOB VRDO | 0.180% | 6/7/11 | 5,000 | 5,000 |
| Los Angeles County CA Unified School | | | | |
| District TRAN | 2.000% | 6/30/11 | 55,000 | 55,058 |
| Manteca CA Redevelopment Agency | | | | |
| Tax Allocation Revenue VRDO | 0.130% | 6/1/11 LOC | 21,835 | 21,835 |
| 2 Metropolitan Water District of Southern | | | | |
| California Revenue PUT | 0.200% | 6/1/12 | 21,500 | 21,500 |
| 2 Metropolitan Water District of Southern | | | | |
| California Revenue PUT | 0.200% | 6/1/12 | 15,000 | 15,000 |
| 1 Metropolitan Water District of Southern | | | | |
| California Revenue TOB VRDO | 0.180% | 6/7/11 (13) | 7,525 | 7,525 |
| 1 Metropolitan Water District of Southern | | | | |
| California Revenue TOB VRDO | 0.180% | 6/7/11 | 5,000 | 5,000 |
| 1 Metropolitan Water District of Southern | | | | |
| California Revenue TOB VRDO | 0.180% | 6/7/11 | 6,435 | 6,435 |
| Metropolitan Water District of Southern | | | | |
| California Revenue VRDO | 0.100% | 6/1/11 | 6,200 | 6,200 |
| Metropolitan Water District of Southern | | | | |
| California Revenue VRDO | 0.120% | 6/7/11 | 37,000 | 37,000 |
| Metropolitan Water District of Southern | | | | |
| California Revenue VRDO | 0.130% | 6/7/11 | 57,000 | 57,000 |
| Metropolitan Water District of Southern | | | | |
| California Revenue VRDO | 0.180% | 6/7/11 | 26,900 | 26,900 |
| Mission Viejo CA Community Development | | | | |
| Financing Authority Revenue (Mission Viejo | | | | |
| Mall Improvement) VRDO | 0.150% | 6/7/11 LOC | 24,900 | 24,900 |
| 1 New Haven CA Unified School District | | | | |
| GO TOB VRDO | 0.170% | 6/7/11 LOC | 12,225 | 12,225 |
22
California Tax-Exempt Money Market Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value |
| | Coupon | Date | ($000) | ($000) |
| Newport Beach CA Revenue (Hoag Memorial | | | | |
| Hospital Presbyterian) VRDO | 0.110% | 6/7/11 | 3,795 | 3,795 |
| 1 Nuveen California Investment Quality | | | | |
| Municipal Fund VRDP VRDO | 0.380% | 6/7/11 LOC | 18,000 | 18,000 |
| 1 Nuveen California Municipal Market | | | | |
| Opportunity Fund VRDP VRDO | 0.350% | 6/7/11 LOC | 20,000 | 20,000 |
| 1 Nuveen California Performance Plus | | | | |
| Municipal Fund VRDP VRDO | 0.380% | 6/7/11 LOC | 15,000 | 15,000 |
| 1 Nuveen California Quality Income | | | | |
| Municipal Fund VRDP VRDO | 0.380% | 6/7/11 LOC | 26,000 | 26,000 |
| 1 Nuveen Insured California Premium Income | | | | |
| Municipal Fund 2 VRDP VRDO | 0.380% | 6/7/11 LOC | 27,000 | 27,000 |
| 1 Oakland CA Redevelopment Agency | | | | |
| Tax Allocation Revenue (Central District Project) | | | | |
| TOB VRDO | 0.170% | 6/7/11 LOC | 13,710 | 13,710 |
| Oakland-Alameda County CA Coliseum Authority | | | | |
| Lease Revenue (Oakland Coliseum Project) | | | | |
| VRDO | 0.150% | 6/7/11 LOC | 67,500 | 67,500 |
| Orange County CA Apartment Development | | | | |
| Revenue VRDO | 0.160% | 6/7/11 LOC | 9,550 | 9,550 |
| Orange County CA Apartment Development | | | | |
| Revenue VRDO | 0.170% | 6/7/11 LOC | 34,200 | 34,200 |
| 1 Orange County CA Sanitation District | | | | |
| COP TOB VRDO | 0.210% | 6/7/11 | 10,925 | 10,925 |
| Orange County CA TRAN | 2.000% | 6/30/11 | 21,000 | 21,027 |
| Orange County CA Water District COP VRDO | 0.120% | 6/7/11 | 36,850 | 36,850 |
| Otay CA Water District (Capital Project) | | | | |
| COP VRDO | 0.200% | 6/7/11 LOC | 8,500 | 8,500 |
| 1 Palomar Pomerado Health System California | | | | |
| Revenue GO TOB VRDO | 0.180% | 6/7/11 (12) | 20,485 | 20,485 |
| 1 Piedmont CA Unified School District | | | | |
| GO TOB VRDO | 0.180% | 6/7/11 | 6,445 | 6,445 |
| Pittsburg CA Redevelopment Agency | | | | |
| Tax Allocation Revenue (Los Medanos | | | | |
| Community Development Project) VRDO | 0.130% | 6/1/11 LOC | 49,655 | 49,655 |
| Riverside County CA Industrial Development | | | | |
| Authority Empowerment Zone Facility Revenue | | | | |
| (Guy Evans Inc. Project) VRDO | 0.170% | 6/7/11 LOC | 5,345 | 5,345 |
| Riverside County CA Public Facility Project | | | | |
| COP VRDO | 0.140% | 6/7/11 LOC | 10,700 | 10,700 |
| Riverside County CA Transportation | | | | |
| Commission Sales Tax Revenue VRDO | 0.150% | 6/7/11 | 9,670 | 9,670 |
| Sacramento CA Municipal Utility | | | | |
| District Revenue CP | 0.230% | 6/8/11 LOC | 7,000 | 7,000 |
| Sacramento CA Suburban Water District | | | | |
| COP VRDO | 0.130% | 6/7/11 LOC | 21,005 | 21,005 |
| Sacramento CA Transportation Authority | | | | |
| Sales Tax Revenue VRDO | 0.140% | 6/7/11 | 47,300 | 47,300 |
| Sacramento County CA Multifamily Housing | | | | |
| (River Pointe Apartments) VRDO | 0.200% | 6/7/11 LOC | 10,000 | 10,000 |
| Sacramento County CA Sanitation Districts | | | | |
| Financing Authority Revenue VRDO | 0.140% | 6/7/11 LOC | 5,000 | 5,000 |
| 1 San Bernardino CA Community College District | | | | |
| GO TOB VRDO | 0.180% | 6/7/11 | 7,500 | 7,500 |
23
California Tax-Exempt Money Market Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value |
| | Coupon | Date | ($000) | ($000) |
| 1 San Bernardino CA Community College District | | | | |
| GO TOB VRDO | 0.230% | 6/7/11 | 41,435 | 41,435 |
| San Bernardino County CA TRAN | 2.000% | 6/30/11 | 57,500 | 57,573 |
| 1 San Diego CA Community College District | | | | |
| GO TOB VRDO | 0.180% | 6/7/11 | 5,000 | 5,000 |
| 1 San Diego CA Community College District | | | | |
| GO TOB VRDO | 0.180% | 6/7/11 | 3,995 | 3,995 |
| 1 San Diego CA Community College District | | | | |
| GO TOB VRDO | 0.180% | 6/7/11 | 5,000 | 5,000 |
| San Diego CA County & School District TRAN | 2.000% | 6/30/11 | 62,500 | 62,580 |
| San Diego CA Housing Authority Multifamily | | | | |
| Housing Revenue (Bay Vista Apartments | | | | |
| Project) VRDO | 0.170% | 6/7/11 LOC | 9,690 | 9,690 |
| San Diego CA Housing Authority Multifamily | | | | |
| Housing Revenue (Canyon Rim Apartments) | | | | |
| VRDO | 0.170% | 6/7/11 LOC | 32,440 | 32,440 |
| 1 San Diego CA Public Facilities Financing | | | | |
| Authority Water Revenue TOB VRDO | 0.180% | 6/7/11 | 7,495 | 7,495 |
| 1 San Diego CA Public Facilities Financing | | | | |
| Authority Water Revenue TOB VRDO | 0.180% | 6/7/11 | 10,310 | 10,310 |
| 1 San Diego CA Unified School District | | | | |
| GO TOB PUT | 0.360% | 11/17/11 | 24,535 | 24,535 |
| San Diego County CA Regional Transportation | | | | |
| Authority Sales Tax Revenue VRDO | 0.160% | 6/7/11 | 4,900 | 4,900 |
| 1 San Diego County CA Water Authority | | | | |
| Revenue COP TOB VRDO | 0.180% | 6/7/11 | 6,840 | 6,840 |
| 1 San Diego County CA Water Authority | | | | |
| Revenue COP TOB VRDO | 0.180% | 6/7/11 | 9,500 | 9,500 |
| 1 San Diego County CA Water Authority Revenue | | | | |
| COP TOB VRDO | 0.180% | 6/7/11 | 50,550 | 50,550 |
| 1 San Diego County CA Water Authority Revenue | | | | |
| COP TOB VRDO | 0.180% | 6/7/11 | 10,100 | 10,100 |
| 1 San Diego County CA Water Authority Revenue | | | | |
| COP TOB VRDO | 0.180% | 6/7/11 | 4,825 | 4,825 |
| 1 San Diego County CA Water Authority Revenue | | | | |
| COP TOB VRDO | 0.240% | 6/7/11 | 6,500 | 6,500 |
| 1 San Diego County CA Water Authority Revenue | | | | |
| COP TOB VRDO | 0.240% | 6/7/11 | 6,100 | 6,100 |
| 1 San Diego County CA Water Authority Revenue | | | | |
| COP TOB VRDO | 0.240% | 6/7/11 | 9,800 | 9,800 |
| 1 San Francisco CA Bay Area Rapid Transit | | | | |
| District Sales Tax Revenue TOB VRDO | 0.170% | 6/7/11 LOC | 10,000 | 10,000 |
| 1 San Francisco CA Bay Area Rapid Transit | | | | |
| District Sales Tax Revenue TOB VRDO | 0.170% | 6/7/11 | 7,500 | 7,500 |
| 1 San Francisco CA Bay Area Rapid Transit | | | | |
| District Sales Tax Revenue TOB VRDO | 0.180% | 6/7/11 | 13,595 | 13,595 |
| San Francisco CA City & County Finance Corp. | | | | |
| Lease Revenue (Moscone Center Expansion) | | | | |
| VRDO | 0.140% | 6/7/11 LOC | 8,550 | 8,550 |
| San Francisco CA City & County International | | | | |
| Airport Revenue VRDO | 0.160% | 6/7/11 LOC | 5,000 | 5,000 |
| San Francisco CA City & County International | | | | |
| Airport Revenue VRDO | 0.170% | 6/7/11 LOC | 16,000 | 16,000 |
24
California Tax-Exempt Money Market Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value |
| | Coupon | Date | ($000) | ($000) |
| San Francisco CA City & County Redevelopment | | | | |
| Agency Multifamily Housing Revenue | | | | |
| (Third & Mission Streets) VRDO | 0.180% | 6/7/11 LOC | 65,200 | 65,200 |
| San Francisco CA City & County Unified | | | | |
| School District TRAN | 2.000% | 6/30/11 | 25,000 | 25,031 |
| 1 San Jose CA Financing Authority Lease Revenue | | | | |
| TOB VRDO | 0.180% | 6/7/11 (13) | 25,960 | 25,960 |
| San Jose CA Multifamily Housing Revenue | | | | |
| (Cinnabar Commons) VRDO | 0.170% | 6/7/11 LOC | 16,600 | 16,600 |
| San Jose CA Multifamily Housing Revenue | | | | |
| (Raintree Apartments) VRDO | 0.180% | 6/7/11 LOC | 10,000 | 10,000 |
| San Jose CA Redevelopment Agency | | | | |
| Tax Allocation Revenue | 6.000% | 8/1/11 (ETM) | 2,915 | 2,943 |
| 1 San Jose CA Unified School District | | | | |
| GO TOB VRDO | 0.180% | 6/7/11 | 7,310 | 7,310 |
| 1 San Jose CA Unified School District Santa Clara | | | | |
| County GO TOB VRDO | 0.170% | 6/7/11 LOC | 5,000 | 5,000 |
| 1 San Marcos CA Public Facilities Authority | | | | |
| TOB VRDO | 0.100% | 6/1/11 LOC | 8,225 | 8,225 |
| San Mateo CA Redevelopment Authority | | | | |
| Tax Allocation Revenue | 5.000% | 8/1/11 (Prere.) | 1,000 | 1,008 |
| San Mateo CA Redevelopment Authority | | | | |
| Tax Allocation Revenue | 5.200% | 8/1/11 (Prere.) | 2,045 | 2,061 |
| San Mateo CA Redevelopment Authority | | | | |
| Tax Allocation Revenue | 5.400% | 8/1/11 (Prere.) | 2,575 | 2,597 |
| San Mateo CA Redevelopment Authority | | | | |
| Tax Allocation Revenue | 5.400% | 8/1/11 (Prere.) | 1,000 | 1,008 |
| San Mateo CA Redevelopment Authority | | | | |
| Tax Allocation Revenue | 5.500% | 8/1/11 (Prere.) | 2,635 | 2,658 |
| San Mateo CA Redevelopment Authority | | | | |
| Tax Allocation Revenue | 5.600% | 8/1/11 (Prere.) | 4,185 | 4,222 |
| 1 San Mateo County CA Community College | | | | |
| District GO TOB VRDO | 0.170% | 6/7/11 | 11,660 | 11,660 |
| 1 San Mateo County CA Community College | | | | |
| District GO TOB VRDO | 0.180% | 6/7/11 | 4,315 | 4,315 |
| Santa Clara County CA El Camino Hospital | | | | |
| District Facilities Authority Revenue | | | | |
| (Valley Medical Center Project) VRDO | 0.140% | 6/7/11 LOC | 14,150 | 14,150 |
| Santa Clara County CA El Camino Hospital | | | | |
| District Facilities Authority Revenue | | | | |
| (Valley Medical Center Project) VRDO | 0.140% | 6/7/11 LOC | 14,900 | 14,900 |
| 1 Sequoia CA Unified School District | | | | |
| GO TOB VRDO | 0.180% | 6/7/11 | 5,860 | 5,860 |
| 1 Sonoma County CA Junior College District | | | | |
| GO TOB VRDO | 0.170% | 6/7/11 | 30,855 | 30,855 |
| South Coast CA Local Education Agencies TRAN | 2.000% | 8/9/11 | 10,000 | 10,026 |
| South Placer CA Wastewater Authority Revenue | | | | |
| VRDO | 0.120% | 6/7/11 LOC | 8,000 | 8,000 |
| South Placer CA Wastewater Authority Revenue | | | | |
| VRDO | 0.120% | 6/7/11 LOC | 8,000 | 8,000 |
| 1 Sunnyvale California Wastewater Revenue | | | | |
| TOB VRDO | 0.180% | 6/7/11 | 13,320 | 13,320 |
| 1 Sweetwater CA Unified School District | | | | |
| GO TOB VRDO | 0.190% | 6/7/11 (13) | 16,445 | 16,445 |
25
California Tax-Exempt Money Market Fund
| | | | | |
| | | | | Face | Market |
| | | | Maturity | Amount | Value |
| | | Coupon | Date | ($000) | ($000) |
| | University of California Regents CP | 0.230% | 6/8/11 | 20,300 | 20,300 |
| | University of California Regents CP | 0.340% | 9/14/11 | 24,000 | 24,000 |
| | University of California Regents CP | 0.310% | 10/6/11 | 10,000 | 10,000 |
| | University of California Regents | | | | |
| | Medical Center Revenue VRDO | 0.110% | 6/1/11 | 3,400 | 3,400 |
| 1 | University of California Revenue TOB VRDO | 0.150% | 6/7/11 | 6,665 | 6,665 |
| 1 | University of California Revenue TOB VRDO | 0.180% | 6/7/11 | 1,890 | 1,890 |
| 1 | University of California Revenue TOB VRDO | 0.180% | 6/7/11 | 29,195 | 29,195 |
| 1 | University of California Revenue TOB VRDO | 0.180% | 6/7/11 | 3,495 | 3,495 |
| 1 | University of California Revenue TOB VRDO | 0.180% | 6/7/11 | 6,000 | 6,000 |
| 1 | University of California Revenue TOB VRDO | 0.180% | 6/7/11 | 3,470 | 3,470 |
| | Ventura County CA TRAN | 2.000% | 7/1/11 | 18,935 | 18,960 |
| | Whittier CA Health Facility Revenue | | | | |
| | (Presbyterian Intercommunity Hospital) VRDO | 0.130% | 6/7/11 LOC | 46,700 | 46,700 |
| | Whittier CA Health Facility Revenue | | | | |
| | (Presbyterian Intercommunity Hospital) VRDO | 0.140% | 6/7/11 LOC | 11,000 | 11,000 |
| | | | | | 4,383,260 |
| Puerto Rico (0.1%) | | | | |
| | Puerto Rico Public Finance Corp. Revenue | 5.500% | 2/1/12 (Prere.) | 3,500 | 3,617 |
| Total Tax-Exempt Municipal Bonds (Cost $4,386,877) | | | | 4,386,877 |
| Other Assets and Liabilities (0.3%) | | | | |
| Other Assets | | | | 73,838 |
| Liabilities | | | | (61,259) |
| | | | | | 12,579 |
| Net Assets (100%) | | | | |
| Applicable to 4,398,920,096 outstanding $.001 par value shares of | | | |
| beneficial interest (unlimited authorization) | | | | 4,399,456 |
| Net Asset Value Per Share | | | | $1.00 |
| |
| At May 31, 2011, net assets consisted of: | |
| | Amount |
| | ($000) |
| Paid-in Capital | 4,399,442 |
| Undistributed Net Investment Income | — |
| Accumulated Net Realized Gains | 14 |
| Net Assets | 4,399,456 |
See Note A in Notes to Financial Statements.
1 Security exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At May 31, 2011, the aggregate value of these securities was $1,238,283,000, representing 28.1% of net assets.
2 Security purchased on a when-issued or delayed-delivery basis for which the fund has not taken delivery as of May 31, 2011.
A key to abbreviations and other references follows the Statement of Net Assets.
See accompanying Notes, which are an integral part of the Financial Statements.
26
California Tax-Exempt Money Market Fund
Key to Abbreviations
ARS—Auction Rate Security.
BAN—Bond Anticipation Note.
COP—Certificate of Participation.
CP—Commercial Paper.
FR—Floating Rate.
GAN—Grant Anticipation Note.
GO—General Obligation Bond.
PUT—Put Option Obligation.
RAN—Revenue Anticipation Note.
TAN—Tax Anticipation Note.
TOB—Tender Option Bond.
TRAN—Tax Revenue Anticipation Note.
VRDO—Variable Rate Demand Obligation.
VRDP—Variable Rate Demand Preferred.
(ETM)—Escrowed to Maturity.
(Prere.)—Prerefunded.
Scheduled principal and interest payments are guaranteed by:
(1) MBIA (Municipal Bond Investors Assurance).
(2) AMBAC (Ambac Assurance Corporation).
(3) FGIC (Financial Guaranty Insurance Company).
(4) AGM (Assured Guaranty Municipal Corporation).
(5) BIGI (Bond Investors Guaranty Insurance).
(6) Connie Lee Inc.
(7) FHA (Federal Housing Authority).
(8) CapMAC (Capital Markets Assurance Corporation).
(9) American Capital Access Financial Guaranty Corporation.
(10) XL Capital Assurance Inc.
(11) CIFG (CDC IXIS Financial Guaranty).
(12) Assured Guaranty Corporation.
(13) Berkshire Hathaway Assurance Corporation.
(14) National Public Finance Guarantee Corporation.
The insurance does not guarantee the market value of the municipal bonds.
LOC—Scheduled principal and interest payments are guaranteed by bank letter of credit.
27
California Tax-Exempt Money Market Fund
| |
| Statement of Operations | |
| |
| | Six Months Ended |
| | May 31, 2011 |
| | ($000) |
| Investment Income | |
| Income | |
| Interest | 6,480 |
| Total Income | 6,480 |
| Expenses | |
| The Vanguard Group—Note B | |
| Investment Advisory Services | 657 |
| Management and Administrative | 2,382 |
| Marketing and Distribution | 763 |
| Custodian Fees | 32 |
| Shareholders’ Reports | 13 |
| Trustees’ Fees and Expenses | 2 |
| Total Expenses | 3,849 |
| Net Investment Income | 2,631 |
| Realized Net Gain (Loss) on Investment Securities Sold | 16 |
| Net Increase (Decrease) in Net Assets Resulting from Operations | 2,647 |
See accompanying Notes, which are an integral part of the Financial Statements.
28
California Tax-Exempt Money Market Fund
| | |
| Statement of Changes in Net Assets | | |
| |
| | Six Months Ended | Year Ended |
| | May 31, | November 30, |
| | 2011 | 2010 |
| | ($000) | ($000) |
| Increase (Decrease) in Net Assets | | |
| Operations | | |
| Net Investment Income | 2,631 | 5,550 |
| Realized Net Gain (Loss) | 16 | 6 |
| Net Increase (Decrease) in Net Assets Resulting from Operations | 2,647 | 5,556 |
| Distributions | | |
| Net Investment Income | (2,631) | (5,550) |
| Realized Capital Gain | — | — |
| Total Distributions | (2,631) | (5,550) |
| Capital Share Transactions (at $1.00) | | |
| Issued | 1,679,174 | 2,982,771 |
| Issued in Lieu of Cash Distributions | 2,538 | 5,359 |
| Redeemed | (1,892,060) | (3,733,806) |
| Net Increase (Decrease) from Capital Share Transactions | (210,348) | (745,676) |
| Total Increase (Decrease) | (210,332) | (745,670) |
| Net Assets | | |
| Beginning of Period | 4,609,788 | 5,355,458 |
| End of Period | 4,399,456 | 4,609,788 |
See accompanying Notes, which are an integral part of the Financial Statements.
29
California Tax-Exempt Money Market Fund
| | | | | | |
| Financial Highlights | | | | | | |
| |
| |
| Six Months | | | | | |
| | Ended | | | | | |
| For a Share Outstanding | May 31, | | | Year Ended November 30, |
| Throughout Each Period | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 |
| Net Asset Value, Beginning of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
| Investment Operations | | | | | | |
| Net Investment Income | .001 | .001 | .004 | .022 | .035 | .032 |
| Net Realized and Unrealized Gain (Loss) | | | | | | |
| on Investments | — | — | — | — | — | — |
| Total from Investment Operations | .001 | .001 | .004 | .022 | .035 | .032 |
| Distributions | | | | | | |
| Dividends from Net Investment Income | (.001) | (.001) | (.004) | (.022) | (.035) | (.032) |
| Distributions from Realized Capital Gains | — | — | — | — | — | — |
| Total Distributions | (.001) | (.001) | (.004) | (.022) | (.035) | (.032) |
| Net Asset Value, End of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
| |
| Total Return1 | 0.06% | 0.11% | 0.37% | 2.21% | 3.55% | 3.24% |
| |
| Ratios/Supplemental Data | | | | | | |
| Net Assets, End of Period (Millions) | $4,399 | $4,610 | $5,355 | $7,506 | $8,623 | $7,220 |
| Ratio of Total Expenses to | | | | | | |
| Average Net Assets | 0.17% | 0.17% | 0.17%2 | 0.11%2 | 0.10% | 0.13% |
| Ratio of Net Investment Income to | | | | | | |
| Average Net Assets | 0.12% | 0.11% | 0.39% | 2.19% | 3.49% | 3.20% |
The expense ratio and net income ratio for the current period have been annualized.
1 Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees.
2 Includes fees to participate in the Treasury Temporary Guarantee Program for Money Market Funds of 0.04% for 2009 and 0.01% for 2008.
See accompanying Notes, which are an integral part of the Financial Statements.
30
California Tax-Exempt Money Market Fund
Notes to Financial Statements
Vanguard California Tax-Exempt Money Market Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund invests in debt instruments of municipal issuers whose ability to meet their obligations may be affected by economic and political developments in the state.
A. The following significant accounting policies conform to generally accepted accounting principles for U.S. mutual funds. The fund consistently follows such policies in preparing its financial statements.
1. Security Valuation: Securities are valued at amortized cost, which approximates market value.
2. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute all of its income. Management has analyzed the fund’s tax positions taken for all open federal income tax years (November 30, 2007–2010), and for the period ended May 31, 2011, and has concluded that no provision for federal income tax is required in the fund’s financial statements.
3. Distributions: Distributions from net investment income are declared daily and paid on the first business day of the following month.
4. Other: Interest income is accrued daily. Premiums and discounts on debt securities purchased are amortized and accreted, respectively, to interest income over the lives of the respective securities. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.
B. The Vanguard Group furnishes at cost investment advisory, corporate management, administrative, marketing, and distribution services. The costs of such services are allocated to the fund under methods approved by the board of trustees. The fund has committed to provide up to 0.40% of its net assets in capital contributions to Vanguard. At May 31, 2011, the fund had contributed capital of $694,000 to Vanguard (included in Other Assets), representing 0.02% of the fund’s net assets and 0.28% of Vanguard’s capitalization. The fund’s trustees and officers are also directors and officers of Vanguard. Vanguard and the board of trustees have agreed to temporarily limit certain net operating expenses in excess of the fund’s daily yield so as to maintain a zero or positive yield for the fund. Vanguard and the board of trustees may terminate the temporary expense limitation at any time.
C. Various inputs may be used to determine the value of the fund’s investments. These inputs are summarized in three broad levels for financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.
Level 1—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments).
At May 31, 2011, 100% of the fund’s investments were valued using amortized cost, in accordance with rules under the Investment Company Act of 1940. Amortized cost approximates the current fair value of a security, but since the value is not obtained from a quoted price in an active market, securities valued at amortized cost are considered to be valued using Level 2 inputs.
D. In preparing the financial statements as of May 31, 2011, management considered the impact of subsequent events for potential recognition or disclosure in these financial statements.
31
California Intermediate-Term Tax-Exempt Fund
Fund Profile
As of May 31, 2011
| | |
| Share-Class Characteristics | |
| | Investor | Admiral |
| | Shares | Shares |
| Ticker Symbol | VCAIX | VCADX |
| Expense Ratio1 | 0.20% | 0.12% |
| 30-Day SEC Yield | 3.07% | 3.15% |
| | | |
| Financial Attributes | | | |
| | | Barclays | Barclays |
| | | 7 Year | Municipal |
| | | Municipal | Bond |
| | Fund | Index | Index |
| Number of Bonds | 707 | 4,774 | 45,699 |
| Yield to Maturity | | | |
| (before expenses) | 3.3% | 2.6% | 3.5% |
| Average Coupon | 4.4% | 4.9% | 4.9% |
| Average Duration | 5.5 years | 5.0 years | 8.4 years |
| Average Effective | | | |
| Maturity | 5.6 years | 6.9 years | 13.3 years |
| Short-Term | | | |
| Reserves | 4.7% | — | — |
| | |
| Volatility Measures | | |
| | Barclays | Barclays |
| | 7 Year | Municipal |
| | Municipal | Bond |
| | Index | Index |
| R-Squared | 0.79 | 0.96 |
| Beta | 0.97 | 0.95 |
These measures show the degree and timing of the fund’s fluctuations compared with the indexes over 36 months.
| |
| Distribution by Maturity (% of portfolio) | |
| Under 1 Year | 12.2% |
| 1 - 3 Years | 15.4 |
| 3 - 5 Years | 17.1 |
| 5 - 10 Years | 42.9 |
| 10 - 20 Years | 11.5 |
| 20 - 30 Years | 0.9 |
| |
| Distribution by Credit Quality (% of portfolio) |
| AAA | 8.1% |
| AA | 50.1 |
| A | 33.2 |
| BBB | 7.7 |
| BB | 0.1 |
| Not Rated | 0.8 |
For information about these ratings, see the Glossary entry for Credit Quality.
Investment Focus
1 The expense ratios shown are from the prospectus dated March 29, 2011, and represent estimated costs for the current fiscal year. For the six months ended May 31, 2011, the annualized expense ratios were 0.20% for Investor Shares and 0.12% for Admiral Shares.
32
California Intermediate-Term Tax-Exempt Fund
Performance Summary
All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the fund. (Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end, visit our website at vanguard.com/performance.) Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s shares, when sold, could be worth more or less than their original cost. The returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
| | | | |
| Fiscal-Year Total Returns (%): November 30, 2000, Through May 31, 2011 | |
| | | | | Barclays |
| | | | | 7 Year |
| | | | | Municipal |
| | | | Investor Shares | Index |
| Fiscal Year | Income Returns | Capital Returns | Total Returns | Total Returns |
| 2001 | 4.67% | 2.77% | 7.44% | 8.13% |
| 2002 | 4.35 | 1.53 | 5.88 | 7.02 |
| 2003 | 4.12 | 1.66 | 5.78 | 6.97 |
| 2004 | 3.93 | -1.52 | 2.41 | 2.89 |
| 2005 | 3.90 | -1.79 | 2.11 | 2.16 |
| 2006 | 4.12 | 1.28 | 5.40 | 5.09 |
| 2007 | 3.99 | -1.53 | 2.46 | 4.19 |
| 2008 | 3.79 | -6.50 | -2.71 | 2.91 |
| 2009 | 4.19 | 6.37 | 10.56 | 10.43 |
| 2010 | 3.79 | 0.64 | 4.43 | 5.52 |
| 2011 | 1.94 | 0.18 | 2.12 | 2.38 |
| Note: For 2011, performance data reflect the six months ended May 31, 2011. | | |
Average Annual Total Returns: Periods Ended March 31, 2011
This table presents returns through the latest calendar quarter—rather than through the end of the fiscal period.
Securities and Exchange Commission rules require that we provide this information.
| | | | | | |
| | | | | | | Ten Years |
| | Inception Date | One Year | Five Years | Income | Capital | Total |
| Investor Shares | 3/4/1994 | 2.08% | 3.57% | 4.04% | -0.21% | 3.83% |
| Admiral Shares | 11/12/2001 | 2.16 | 3.65 | 4.071 | -0.501 | 3.571 |
| 1 Return since inception. | | | | | | |
See Financial Highlights for dividend and capital gains information.
33
California Intermediate-Term Tax-Exempt Fund
Financial Statements (unaudited)
Statement of Net Assets
As of May 31, 2011
The fund reports a complete list of its holdings in regulatory filings four times in each fiscal year, at the quarter-ends. For the second and fourth fiscal quarters, the lists appear in the fund’s semiannual and annual reports to shareholders. For the first and third fiscal quarters, the fund files the lists with the Securities and Exchange Commission on Form N-Q. Shareholders can look up the fund’s Forms N-Q on the SEC’s website at sec.gov. Forms N-Q may also be reviewed and copied at the SEC’s Public Reference Room (see the back cover of this report for further information).
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value |
| | Coupon | Date | ($000) | ($000) |
| Tax-Exempt Municipal Bonds (98.8%) | | | | |
| California (97.9%) | | | | |
| ABAG Finance Authority for Nonprofit Corps. | | | | |
| California Revenue (899 Charleston Project) | | | | |
| VRDO | 0.180% | 6/1/11 LOC | 15,395 | 15,395 |
| Alameda CA Corridor Transportation Authority | | | | |
| Revenue | 5.125% | 10/1/14 (14) | 10,150 | 10,230 |
| Alameda CA Corridor Transportation Authority | | | | |
| Revenue | 0.000% | 10/1/20 (2) | 12,250 | 7,047 |
| Alameda CA Corridor Transportation Authority | | | | |
| Revenue | 0.000% | 10/1/29 (2) | 30,000 | 8,305 |
| Alameda CA Corridor Transportation Authority | | | | |
| Revenue | 0.000% | 10/1/30 (2) | 8,000 | 2,046 |
| Alameda County CA (Medical Center Project) COP | 5.250% | 6/1/12 (ETM) | 1,595 | 1,662 |
| Alameda County CA (Medical Center Project) COP | 5.250% | 6/1/13 (ETM) | 1,785 | 1,865 |
| Alameda County CA (Medical Center Project) COP | 5.375% | 6/1/14 (ETM) | 1,880 | 1,981 |
| Alameda County CA (Medical Center Project) COP | 5.375% | 6/1/15 (ETM) | 3,960 | 4,172 |
| Alameda County CA COP | 5.375% | 12/1/12 (14) | 11,000 | 11,327 |
| Alameda County CA COP | 5.375% | 12/1/13 (14) | 13,930 | 14,312 |
| Alameda County CA COP | 5.375% | 12/1/14 (14) | 4,790 | 4,903 |
| Alameda County CA COP | 5.375% | 12/1/15 (14) | 1,500 | 1,535 |
| Alvord CA Unified School District GO | 5.900% | 2/1/24 (4) | 3,865 | 4,349 |
| Anaheim CA Public Financing Authority Revenue | | | | |
| (Electric System) | 5.000% | 10/1/21 (14) | 4,425 | 4,832 |
| Anaheim CA Public Financing Authority Revenue | | | | |
| (Electric System) | 5.000% | 10/1/22 (14) | 4,660 | 5,041 |
| Anaheim CA Public Financing Authority Revenue | | | | |
| (Electric System) | 5.000% | 10/1/24 (14) | 5,175 | 5,479 |
| Anaheim CA Public Financing Authority Revenue | | | | |
| (Electric System) | 5.000% | 10/1/25 (14) | 5,450 | 5,714 |
| Anaheim CA Public Financing Authority Revenue | | | | |
| (Electric System) | 5.250% | 10/1/30 | 5,585 | 5,838 |
| Anaheim CA Union High School District GO | 5.375% | 8/1/12 (Prere.) | 1,250 | 1,324 |
| Antioch CA Public Financing Authority | | | | |
| Reassessment Revenue | 5.000% | 9/2/13 (2) | 6,530 | 6,538 |
| Bakersfield CA Wastewater Revenue | 5.000% | 9/15/24 (4) | 7,600 | 8,031 |
| Bay Area CA Infrastructure Financing Authority | | | | |
| Revenue | 5.000% | 8/1/17 (10) | 5,000 | 5,153 |
34
California Intermediate-Term Tax-Exempt Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value |
| | Coupon | Date | ($000) | ($000) |
| Bay Area CA Infrastructure Financing Authority | | | | |
| Revenue | 5.000% | 8/1/17 (2) | 32,610 | 32,735 |
| Bay Area CA Infrastructure Financing Authority | | | | |
| Revenue | 5.000% | 8/1/17 (14) | 50,000 | 51,191 |
| Bay Area Toll Authority California Toll Bridge | | | | |
| Revenue (San Francisco Bay Area) | 5.000% | 4/1/18 | 5,665 | 6,490 |
| Bay Area Toll Authority California Toll Bridge | | | | |
| Revenue (San Francisco Bay Area) | 5.000% | 4/1/23 | 11,625 | 12,700 |
| Bay Area Toll Authority California Toll Bridge | | | | |
| Revenue (San Francisco Bay Area) | 5.000% | 4/1/25 | 3,000 | 3,224 |
| Bay Area Toll Authority California Toll Bridge | | | | |
| Revenue (San Francisco Bay Area) | 5.000% | 4/1/26 | 10,000 | 10,648 |
| Bay Area Toll Authority California Toll Bridge | | | | |
| Revenue (San Francisco Bay Area) | 5.250% | 4/1/29 | 11,280 | 12,001 |
| Burbank CA Public Financing Authority Revenue | | | | |
| (Golden State Redevelopment Project) | 5.250% | 12/1/12 (2) | 3,540 | 3,651 |
| Burbank CA Public Financing Authority Revenue | | | | |
| (Golden State Redevelopment Project) | 5.250% | 12/1/13 (2) | 4,615 | 4,792 |
| Cabrillo CA Community College District Revenue | 0.000% | 8/1/12 (14) | 2,525 | 2,479 |
| Cabrillo CA Community College District Revenue | 0.000% | 8/1/13 (14) | 2,590 | 2,472 |
| Cabrillo CA Community College District Revenue | 0.000% | 8/1/14 (14) | 2,655 | 2,460 |
| California County CA Tobacco Securitization | | | | |
| Agency | 0.000% | 6/1/21 | 13,765 | 12,346 |
| California Department of Water Resources | | | | |
| Power Supply Revenue | 5.500% | 5/1/12 (Prere.) | 12,225 | 12,933 |
| California Department of Water Resources | | | | |
| Power Supply Revenue | 6.000% | 5/1/12 (Prere.) | 13,970 | 14,843 |
| California Department of Water Resources | | | | |
| Power Supply Revenue | 6.000% | 5/1/12 (Prere.) | 12,500 | 13,281 |
| California Department of Water Resources | | | | |
| Power Supply Revenue | 5.500% | 5/1/13 | 6,110 | 6,440 |
| California Department of Water Resources | | | | |
| Power Supply Revenue | 5.000% | 5/1/15 | 15,000 | 17,199 |
| California Department of Water Resources | | | | |
| Power Supply Revenue | 5.000% | 5/1/16 | 5,000 | 5,840 |
| California Department of Water Resources | | | | |
| Power Supply Revenue | 5.000% | 5/1/16 | 17,000 | 19,857 |
| California Department of Water Resources | | | | |
| Power Supply Revenue | 5.000% | 5/1/17 | 25,000 | 29,411 |
| California Department of Water Resources | | | | |
| Power Supply Revenue | 5.000% | 5/1/17 | 14,600 | 17,176 |
| California Department of Water Resources | | | | |
| Power Supply Revenue | 5.000% | 5/1/18 | 17,950 | 21,134 |
| California Department of Water Resources | | | | |
| Power Supply Revenue | 5.000% | 5/1/18 | 5,475 | 6,446 |
| California Department of Water Resources | | | | |
| Power Supply Revenue | 5.000% | 5/1/19 | 19,590 | 23,078 |
| California Department of Water Resources | | | | |
| Power Supply Revenue | 5.000% | 5/1/19 | 1,215 | 1,431 |
| California Department of Water Resources | | | | |
| Power Supply Revenue | 5.000% | 5/1/20 | 20,290 | 23,908 |
| California Department of Water Resources | | | | |
| Power Supply Revenue | 5.000% | 5/1/20 | 3,660 | 4,313 |
35
California Intermediate-Term Tax-Exempt Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value |
| | Coupon | Date | ($000) | ($000) |
| California Department of Water Resources | | | | |
| Power Supply Revenue | 5.000% | 5/1/21 | 50,000 | 56,193 |
| California Department of Water Resources | | | | |
| Power Supply Revenue | 5.000% | 5/1/21 | 5,000 | 5,776 |
| California Department of Water Resources | | | | |
| Power Supply Revenue | 5.000% | 5/1/21 | 20,000 | 22,477 |
| California Department of Water Resources | | | | |
| Power Supply Revenue | 5.000% | 5/1/22 | 4,915 | 5,631 |
| California Department of Water Resources | | | | |
| Power Supply Revenue | 5.000% | 5/1/22 | 14,675 | 16,383 |
| California Department of Water Resources | | | | |
| Power Supply Revenue VRDO | 0.150% | 6/7/11 LOC | 3,000 | 3,000 |
| California Department of Water Resources | | | | |
| Power Supply Revenue VRDO | 0.160% | 6/7/11 | 1,000 | 1,000 |
| California Department of Water Resources | | | | |
| Water System Revenue (Central Valley Project) | 5.000% | 12/1/12 (ETM) | 90 | 96 |
| California Department of Water Resources | | | | |
| Water System Revenue (Central Valley Project) | 5.000% | 12/1/12 (14) | 3,550 | 3,796 |
| California Department of Water Resources | | | | |
| Water System Revenue (Central Valley Project) | 5.000% | 12/1/24 | 5,000 | 5,505 |
| California Department of Water Resources | | | | |
| Water System Revenue (Central Valley Project) | 5.000% | 12/1/26 | 8,565 | 9,279 |
| California Department of Water Resources | | | | |
| Water System Revenue (Central Valley Project) | 5.000% | 12/1/26 (14) | 3,535 | 3,778 |
| California Department of Water Resources | | | | |
| Water System Revenue (Central Valley Project) | 5.000% | 12/1/27 | 8,800 | 9,601 |
| California Department of Water Resources | | | | |
| Water System Revenue (Central Valley Project) | 5.250% | 12/1/27 | 3,900 | 4,387 |
| California Department of Water Resources | | | | |
| Water System Revenue (Central Valley Project) | 5.250% | 12/1/28 | 4,505 | 5,029 |
| California Department of Water Resources | | | | |
| Water System Revenue (Central Valley Project) | 5.250% | 12/1/29 | 4,640 | 5,137 |
| California Department of Water Resources | | | | |
| Water System Revenue (Central Valley Project) | 5.250% | 12/1/30 | 1,850 | 2,034 |
| California Economic Recovery Bonds GO | 5.250% | 7/1/13 | 44,420 | 48,331 |
| California Economic Recovery Bonds GO | 5.250% | 7/1/14 (14) | 5,155 | 5,788 |
| California Economic Recovery Bonds GO | 5.250% | 7/1/14 (ETM) | 3,385 | 3,857 |
| California Economic Recovery Bonds GO | 5.250% | 7/1/14 | 11,615 | 13,042 |
| California Economic Recovery Bonds GO | 5.000% | 7/1/17 (14) | 28,000 | 28,084 |
| California Economic Recovery Bonds GO | 5.000% | 7/1/18 | 27,090 | 31,566 |
| California Economic Recovery Bonds GO | 5.000% | 7/1/19 | 28,530 | 33,300 |
| California Economic Recovery Bonds GO | 5.000% | 7/1/20 | 48,810 | 55,996 |
| California Economic Recovery Bonds GO | 5.250% | 7/1/21 | 45,385 | 52,174 |
| California Economic Recovery Bonds GO | 5.000% | 7/1/22 | 16,280 | 17,494 |
| California Educational Facilities Authority | | | | |
| Revenue (College of Arts & Crafts) | 6.875% | 6/1/14 | 360 | 388 |
| California Educational Facilities Authority | | | | |
| Revenue (College of Arts & Crafts) | 6.875% | 6/1/15 | 380 | 414 |
| California Educational Facilities Authority | | | | |
| Revenue (College of Arts & Crafts) | 6.875% | 6/1/16 | 400 | 441 |
| California Educational Facilities Authority | | | | |
| Revenue (Stanford University) | 5.000% | 3/15/26 | 20,000 | 23,490 |
| California Educational Facilities Authority | | | | |
| Revenue (University of San Francisco) VRDO | 0.150% | 6/7/11 LOC | 6,000 | 6,000 |
36
California Intermediate-Term Tax-Exempt Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value |
| | Coupon | Date | ($000) | ($000) |
| California Educational Facilities Authority | | | | |
| Revenue (University of San Francisco) VRDO | 0.150% | 6/7/11 LOC | 2,800 | 2,800 |
| California GO | 5.000% | 2/1/12 (Prere.) | 9,400 | 9,700 |
| California GO | 5.000% | 4/1/12 | 2,000 | 2,069 |
| California GO | 5.000% | 3/1/13 | 20,640 | 22,044 |
| California GO | 5.000% | 3/1/14 | 5,000 | 5,485 |
| California GO | 5.000% | 10/1/14 | 2,000 | 2,227 |
| California GO | 5.000% | 11/1/14 | 1,390 | 1,551 |
| California GO | 5.000% | 3/1/15 | 1,000 | 1,120 |
| California GO | 5.375% | 4/1/15 | 125 | 130 |
| California GO | 5.000% | 12/1/15 | 1,470 | 1,607 |
| California GO | 5.000% | 4/1/17 | 11,000 | 12,660 |
| California GO | 5.250% | 2/1/18 (14) | 8,000 | 9,321 |
| California GO | 6.000% | 2/1/18 (2) | 6,240 | 7,547 |
| California GO | 5.000% | 3/1/18 | 1,850 | 2,128 |
| California GO | 5.500% | 4/1/18 | 20,000 | 23,634 |
| California GO | 5.000% | 8/1/18 | 1,895 | 2,126 |
| California GO | 5.000% | 10/1/18 | 20,000 | 23,031 |
| California GO | 5.500% | 4/1/19 | 11,245 | 13,214 |
| California GO | 5.000% | 5/1/19 | 10,000 | 10,736 |
| California GO | 5.000% | 8/1/19 | 30,000 | 32,282 |
| California GO | 5.000% | 10/1/19 (14) | 14,800 | 16,193 |
| California GO | 5.250% | 2/1/20 | 7,500 | 8,625 |
| California GO | 5.000% | 3/1/20 | 55,285 | 58,582 |
| California GO | 5.000% | 8/1/20 | 14,890 | 16,180 |
| California GO | 5.000% | 3/1/21 | 2,250 | 2,501 |
| California GO | 5.500% | 4/1/21 | 2,000 | 2,270 |
| California GO | 5.000% | 6/1/22 | 12,000 | 12,605 |
| California GO | 5.000% | 9/1/23 | 12,120 | 12,733 |
| California GO | 5.000% | 10/1/23 | 12,500 | 13,140 |
| California GO | 5.000% | 12/1/23 | 7,500 | 7,873 |
| California GO | 5.000% | 3/1/24 | 3,000 | 3,160 |
| California GO | 5.000% | 8/1/24 | 10,000 | 10,362 |
| California GO | 5.000% | 8/1/24 (4) | 31,275 | 32,296 |
| California GO | 5.000% | 10/1/24 | 13,440 | 14,066 |
| California GO | 5.000% | 11/1/24 | 6,000 | 6,241 |
| California GO | 5.000% | 11/1/24 | 5,000 | 5,278 |
| California GO | 5.000% | 12/1/24 | 2,000 | 2,081 |
| California GO | 5.125% | 3/1/25 | 2,000 | 2,079 |
| California GO | 5.000% | 8/1/25 | 10,000 | 10,277 |
| California GO | 5.000% | 11/1/25 | 1,500 | 1,564 |
| California GO | 5.000% | 12/1/25 | 21,015 | 21,673 |
| California GO | 5.000% | 3/1/26 | 5,000 | 5,097 |
| California GO | 5.000% | 3/1/26 | 8,500 | 8,779 |
| California GO | 5.000% | 4/1/26 | 37,480 | 38,481 |
| California GO | 5.000% | 11/1/26 | 7,500 | 7,762 |
| California GO | 5.000% | 4/1/27 | 24,285 | 24,862 |
| California GO | 5.750% | 4/1/27 | 31,455 | 33,874 |
| California GO | 4.500% | 8/1/27 | 6,000 | 5,760 |
| California GO | 5.000% | 3/1/28 | 10,855 | 10,955 |
| California GO | 5.750% | 4/1/28 | 30,000 | 32,103 |
| California GO | 5.000% | 6/1/28 | 10,005 | 10,117 |
| California GO | 5.250% | 3/1/30 | 20,000 | 20,549 |
| California GO | 4.500% | 8/1/30 | 13,770 | 12,607 |
37
California Intermediate-Term Tax-Exempt Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value |
| | Coupon | Date | ($000) | ($000) |
| California GO | 5.000% | 3/1/31 | 5,535 | 5,544 |
| California GO | 5.750% | 4/1/31 | 30,000 | 32,144 |
| California GO | 6.000% | 3/1/33 | 12,000 | 13,054 |
| California GO | 6.500% | 4/1/33 | 20,000 | 22,321 |
| 1 California GO TOB VRDO | 0.500% | 6/1/11 LOC | 8,590 | 8,590 |
| California Health Facilities Financing Authority | | | | |
| Revenue (Adventist Health System/West) | 5.000% | 3/1/16 | 2,170 | 2,249 |
| California Health Facilities Financing Authority | | | | |
| Revenue (Adventist Health System/West) | 5.000% | 3/1/19 | 1,025 | 1,043 |
| California Health Facilities Financing Authority | | | | |
| Revenue (Adventist Health System/West) | 5.000% | 3/1/33 | 2,000 | 1,838 |
| California Health Facilities Financing Authority | | | | |
| Revenue (California-Nevada Methodist Homes) | 5.000% | 7/1/26 | 1,740 | 1,709 |
| California Health Facilities Financing Authority | | | | |
| Revenue (Catholic Healthcare West) | 5.500% | 7/1/11 (14) | 2,675 | 2,685 |
| California Health Facilities Financing Authority | | | | |
| Revenue (Catholic Healthcare West) | 5.500% | 7/1/12 (14) | 2,465 | 2,474 |
| California Health Facilities Financing Authority | | | | |
| Revenue (Catholic Healthcare West) | 5.000% | 7/1/19 | 1,000 | 1,079 |
| California Health Facilities Financing Authority | | | | |
| Revenue (Catholic Healthcare West) | 5.500% | 7/1/25 | 5,000 | 5,134 |
| California Health Facilities Financing Authority | | | | |
| Revenue (Catholic Healthcare West) | 5.625% | 7/1/25 | 19,820 | 20,655 |
| California Health Facilities Financing Authority | | | | |
| Revenue (Catholic Healthcare West) | 6.000% | 7/1/29 | 3,000 | 3,124 |
| California Health Facilities Financing Authority | | | | |
| Revenue (Catholic Healthcare West) PUT | 5.000% | 7/2/12 | 8,000 | 8,325 |
| California Health Facilities Financing Authority | | | | |
| Revenue (Catholic Healthcare West) PUT | 5.000% | 7/1/14 | 9,000 | 9,781 |
| California Health Facilities Financing Authority | | | | |
| Revenue (Catholic Healthcare West) PUT | 5.000% | 7/1/14 | 39,000 | 43,210 |
| California Health Facilities Financing Authority | | | | |
| Revenue (Cedars-Sinai Medical Center) | 5.000% | 11/15/14 | 4,000 | 4,427 |
| California Health Facilities Financing Authority | | | | |
| Revenue (Cedars-Sinai Medical Center) | 5.000% | 11/15/16 | 2,000 | 2,197 |
| California Health Facilities Financing Authority | | | | |
| Revenue (Cedars-Sinai Medical Center) | 5.000% | 11/15/17 | 4,585 | 4,951 |
| California Health Facilities Financing Authority | | | | |
| Revenue (Children’s Hospital of Orange County) | 6.250% | 11/1/29 | 5,000 | 5,215 |
| California Health Facilities Financing Authority | | | | |
| Revenue (Lucile Salter Packard Children’s | | | | |
| Hospital at Stanford) | 5.000% | 8/15/14 (2) | 2,280 | 2,455 |
| California Health Facilities Financing Authority | | | | |
| Revenue (Lucile Salter Packard Children’s | | | | |
| Hospital at Stanford) | 5.000% | 8/15/15 (2) | 2,245 | 2,398 |
| California Health Facilities Financing Authority | | | | |
| Revenue (Lucile Salter Packard Children’s | | | | |
| Hospital at Stanford) | 5.000% | 8/15/16 (2) | 2,515 | 2,672 |
| California Health Facilities Financing Authority | | | | |
| Revenue (Lucile Salter Packard Children’s | | | | |
| Hospital at Stanford) | 5.000% | 8/15/17 (2) | 2,630 | 2,779 |
| California Health Facilities Financing Authority | | | | |
| Revenue (Providence Health & Services) | 6.250% | 10/1/24 | 3,000 | 3,444 |
38
California Intermediate-Term Tax-Exempt Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value |
| | Coupon | Date | ($000) | ($000) |
| California Health Facilities Financing Authority | | | | |
| Revenue (Providence Health & Services) | 6.250% | 10/1/28 | 4,000 | 4,449 |
| California Health Facilities Financing Authority | | | | |
| Revenue (Scripps Health) | 5.000% | 10/1/17 | 2,515 | 2,820 |
| California Health Facilities Financing Authority | | | | |
| Revenue (Scripps Health) | 5.000% | 10/1/18 | 3,000 | 3,337 |
| California Health Facilities Financing Authority | | | | |
| Revenue (St. Joseph Health System) | 5.500% | 7/1/29 | 10,000 | 10,149 |
| California Health Facilities Financing Authority | | | | |
| Revenue (St. Joseph Health System) PUT | 5.000% | 10/16/14 | 15,000 | 16,447 |
| 1 California Health Facilities Financing Authority | | | | |
| Revenue (St. Joseph Health System) TOB VRDO | 0.180% | 6/7/11 | 15,000 | 15,000 |
| California Health Facilities Financing Authority | | | | |
| Revenue (Stanford Hospital) | 5.000% | 11/15/14 | 2,715 | 2,927 |
| California Health Facilities Financing Authority | | | | |
| Revenue (Stanford Hospital) | 5.000% | 11/15/15 | 3,000 | 3,207 |
| California Health Facilities Financing Authority | | | | |
| Revenue (Stanford Hospital) | 5.000% | 11/15/16 | 6,275 | 6,672 |
| California Health Facilities Financing Authority | | | | |
| Revenue (Sutter Health) | 5.875% | 8/15/31 | 5,000 | 5,177 |
| 1 California Health Facilities Financing Authority | | | | |
| Revenue (Sutter Health) TOB VRDO | 0.180% | 6/7/11 | 18,860 | 18,860 |
| 1 California Health Facilities Financing Authority | | | | |
| Revenue (Sutter Health) TOB VRDO | 0.180% | 6/7/11 | 13,325 | 13,325 |
| California Infrastructure & Economic Development | | | | |
| Bank Revenue (Academy of Sciences) VRDO | 0.100% | 6/1/11 LOC | 8,200 | 8,200 |
| California Infrastructure & Economic Development | | | | |
| Bank Revenue (Academy of Sciences) VRDO | 0.100% | 6/1/11 LOC | 10,000 | 10,000 |
| California Infrastructure & Economic Development | | | | |
| Bank Revenue (Clean Water State | | | | |
| Revolving Fund) | 5.000% | 10/1/14 | 2,500 | 2,639 |
| California Infrastructure & Economic Development | | | | |
| Bank Revenue (J. David Gladstone Institutes | | | | |
| Project) | 5.000% | 10/1/11 | 1,275 | 1,291 |
| California Infrastructure & Economic Development | | | | |
| Bank Revenue (J. David Gladstone Institutes | | | | |
| Project) | 5.000% | 10/1/12 | 2,950 | 3,013 |
| California Infrastructure & Economic Development | | | | |
| Bank Revenue (J. David Gladstone Institutes | | | | |
| Project) | 5.000% | 10/1/13 | 2,350 | 2,398 |
| California Infrastructure & Economic Development | | | | |
| Bank Revenue (J. David Gladstone Institutes | | | | |
| Project) | 5.500% | 10/1/14 | 2,250 | 2,297 |
| California Infrastructure & Economic Development | | | | |
| Bank Revenue (J. David Gladstone Institutes | | | | |
| Project) | 5.500% | 10/1/15 | 2,430 | 2,478 |
| California Infrastructure & Economic Development | | | | |
| Bank Revenue (J. David Gladstone Institutes | | | | |
| Project) | 5.500% | 10/1/16 | 3,620 | 3,690 |
| California Infrastructure & Economic Development | | | | |
| Bank Revenue (J. David Gladstone Institutes | | | | |
| Project) | 5.500% | 10/1/17 | 3,820 | 3,890 |
| 2 California Infrastructure & Economic Development | | | | |
| Bank Revenue (J. Paul Getty Trust) PUT | 3.900% | 12/1/11 | 9,000 | 9,151 |
39
California Intermediate-Term Tax-Exempt Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value |
| | Coupon | Date | ($000) | ($000) |
| California Infrastructure & Economic Development | | | | |
| Bank Revenue (J. Paul Getty Trust) PUT | 4.000% | 12/1/11 | 15,745 | 16,028 |
| California Infrastructure & Economic Development | | | | |
| Bank Revenue (Kaiser Hospital Assistance I-LLC) | 5.550% | 8/1/31 | 3,500 | 3,501 |
| California Infrastructure & Economic Development | | | | |
| Bank Revenue (Science Center Phase II Project) | 5.000% | 5/1/18 (14) | 1,785 | 1,813 |
| California Infrastructure & Economic Development | | | | |
| Bank Revenue (Science Center Phase II Project) | 5.000% | 5/1/19 (14) | 1,040 | 1,045 |
| California Infrastructure & Economic Development | | | | |
| Bank Revenue (Science Center Phase II Project) | 5.000% | 5/1/21 (14) | 1,145 | 1,105 |
| California Infrastructure & Economic Development | | | | |
| Bank Revenue (State Revolving Fund) | 5.000% | 10/1/29 | 7,000 | 7,139 |
| California Infrastructure & Economic Development | | | | |
| Bank Revenue (Workers’ Compensation Relief) | 5.250% | 10/1/13 (2) | 18,000 | 19,705 |
| California Infrastructure & Economic Development | | | | |
| Bank Revenue (Workers’ Compensation Relief) | 5.250% | 10/1/14 (2) | 25,815 | 27,967 |
| California Municipal Finance Authority | | | | |
| (Community Hospitals of Central California | | | | |
| Obligated Group) COP | 5.375% | 2/1/29 | 16,600 | 14,846 |
| California Municipal Finance Authority Revenue | | | | |
| (University of La Verne) | 5.000% | 6/1/16 | 1,000 | 1,052 |
| California Municipal Finance Authority Revenue | | | | |
| (University of La Verne) | 4.750% | 6/1/18 | 2,325 | 2,342 |
| California Municipal Finance Authority Revenue | | | | |
| (University of La Verne) | 5.000% | 6/1/19 | 2,375 | 2,392 |
| California Pollution Control Financing Authority | | | | |
| Environmental Improvement Revenue | | | | |
| (BP West Coast Products LLC Project) PUT | 2.600% | 9/2/14 | 13,550 | 13,551 |
| California Pollution Control Financing Authority | | | | |
| Revenue (Pacific Gas & Electric Co.) VRDO | 2.700% | 6/1/11 LOC | 2,200 | 2,200 |
| California Pollution Control Financing Authority | | | | |
| Revenue (San Diego Gas & Electric Co.) | 5.900% | 6/1/14 (14) | 17,135 | 19,097 |
| California Public Works Board Lease Revenue | | | | |
| (Butterfield State Office Complex) | 5.000% | 6/1/20 | 3,895 | 4,011 |
| California Public Works Board Lease Revenue | | | | |
| (Department of Corrections) | 5.000% | 6/1/11 | 3,500 | 3,500 |
| California Public Works Board Lease Revenue | | | | |
| (Department of Corrections) | 5.000% | 6/1/12 | 5,000 | 5,170 |
| California Public Works Board Lease Revenue | | | | |
| (Department of Corrections) | 5.000% | 12/1/12 (14) | 10,625 | 11,155 |
| California Public Works Board Lease Revenue | | | | |
| (Department of Corrections) | 5.000% | 1/1/18 (2) | 27,790 | 29,528 |
| California Public Works Board Lease Revenue | | | | |
| (Department of Corrections) | 5.000% | 1/1/21 | 3,975 | 4,078 |
| California Public Works Board Lease Revenue | | | | |
| (Department of Corrections) | 5.500% | 6/1/21 | 10,000 | 10,322 |
| California Public Works Board Lease Revenue | | | | |
| (Department of Corrections) | 5.500% | 6/1/22 | 10,000 | 10,270 |
| California Public Works Board Lease Revenue | | | | |
| (Department of General Services) | 6.000% | 4/1/27 | 5,000 | 5,271 |
| California Public Works Board Lease Revenue | | | | |
| (Department of Mental Health) | 5.500% | 6/1/15 | 1,500 | 1,617 |
| California Public Works Board Lease Revenue | | | | |
| (Department of Mental Health) | 5.500% | 6/1/17 | 8,000 | 8,448 |
40
California Intermediate-Term Tax-Exempt Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value |
| | Coupon | Date | ($000) | ($000) |
| California Public Works Board Lease Revenue | | | | |
| (Department of Mental Health) | 5.500% | 6/1/18 | 5,000 | 5,225 |
| California Public Works Board Lease Revenue | | | | |
| (Regents of The University of California) | 5.500% | 6/1/14 | 9,750 | 10,324 |
| California Public Works Board Lease Revenue | | | | |
| (Regents of The University of California) | 5.000% | 6/1/18 (14) | 10,310 | 11,621 |
| California Public Works Board Lease Revenue | | | | |
| (Regents of The University of California) | 5.000% | 6/1/20 (14) | 7,670 | 8,574 |
| California Public Works Board Lease Revenue | | | | |
| (Regents of The University of California) | 5.000% | 4/1/25 | 5,765 | 5,984 |
| California Public Works Board Lease Revenue | | | | |
| (Regents of The University of California) | 5.250% | 11/1/26 (14) | 9,010 | 9,398 |
| California Public Works Board Lease Revenue | | | | |
| (Trustees of The California State University) | 5.300% | 10/1/15 (2) | 6,655 | 6,669 |
| California Public Works Board Lease Revenue | | | | |
| (Trustees of The California State University) | 5.375% | 10/1/16 (14) | 4,750 | 4,759 |
| California Public Works Board Lease Revenue | | | | |
| (Various Capital Projects) | 5.000% | 11/1/13 | 2,000 | 2,149 |
| California Public Works Board Lease Revenue | | | | |
| (Various Capital Projects) | 5.000% | 11/1/14 | 4,745 | 5,166 |
| California Public Works Board Lease Revenue | | | | |
| (Various Capital Projects) | 5.000% | 11/1/16 | 6,395 | 7,039 |
| California Public Works Board Lease Revenue | | | | |
| (Various Capital Projects) | 5.000% | 11/1/18 | 4,000 | 4,343 |
| California Public Works Board Lease Revenue | | | | |
| (Various Capital Projects) | 5.250% | 11/1/20 | 5,000 | 5,360 |
| California State University Revenue Systemwide | 5.375% | 11/1/14 (14) | 5,390 | 5,818 |
| California State University Revenue Systemwide | 5.000% | 11/1/22 (2) | 18,440 | 19,065 |
| California State University Revenue Systemwide | 5.000% | 11/1/24 | 8,690 | 8,978 |
| California State University Revenue Systemwide | 5.000% | 11/1/25 | 11,820 | 12,139 |
| California State University Revenue Systemwide | 5.000% | 11/1/26 | 12,530 | 12,779 |
| California State University Revenue Systemwide | 5.000% | 11/1/27 | 5,000 | 5,070 |
| 1 California State University Revenue Systemwide | | | | |
| TOB VRDO | 0.180% | 6/7/11 (12) | 5,000 | 5,000 |
| California Statewide Communities Development | | | | |
| Authority (Institute for Defense Analyses) VRDO | 0.180% | 6/7/11 (2)LOC | 3,460 | 3,460 |
| California Statewide Communities Development | | | | |
| Authority Health Facility Revenue | | | | |
| (Adventist Health System/West) | 5.000% | 3/1/25 | 14,975 | 14,801 |
| California Statewide Communities Development | | | | |
| Authority Health Facility Revenue | | | | |
| (Memorial Health Services) | 6.000% | 10/1/13 | 6,920 | 7,493 |
| California Statewide Communities Development | | | | |
| Authority Health Facility Revenue | | | | |
| (Memorial Health Services) | 6.000% | 10/1/14 | 5,335 | 5,746 |
| California Statewide Communities Development | | | | |
| Authority Health Facility Revenue | | | | |
| (Memorial Health Services) | 6.000% | 10/1/15 | 7,780 | 8,316 |
| California Statewide Communities Development | | | | |
| Authority Health Facility Revenue | | | | |
| (Memorial Health Services) | 6.000% | 10/1/23 | 10,000 | 10,326 |
| California Statewide Communities Development | | | | |
| Authority Multifamily Housing Revenue | | | | |
| (Ridgeway Apartments) VRDO | 0.130% | 6/7/11 LOC | 3,100 | 3,100 |
41
California Intermediate-Term Tax-Exempt Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value |
| | Coupon | Date | ($000) | ($000) |
| California Statewide Communities Development | | | | |
| Authority Pollution Control Revenue | | | | |
| (Southern California Edison Co.) PUT | 4.250% | 11/1/16 (3) | 15,000 | 16,129 |
| California Statewide Communities Development | | | | |
| Authority Pollution Control Revenue | | | | |
| (Southern California Edison Co.) PUT | 4.250% | 11/1/16 (3) | 25,000 | 26,882 |
| California Statewide Communities Development | | | | |
| Authority Revenue (Children’s Hospital of | | | | |
| Los Angeles) COP | 6.000% | 6/1/11 (14) | 2,365 | 2,365 |
| California Statewide Communities Development | | | | |
| Authority Revenue (Cottage Health System | | | | |
| Obligated Group) | 5.250% | 11/1/30 | 10,000 | 9,903 |
| California Statewide Communities Development | | | | |
| Authority Revenue (Daughters of Charity | | | | |
| Health System - St. Francis Medical Center) | 5.250% | 7/1/11 | 1,740 | 1,743 |
| California Statewide Communities Development | | | | |
| Authority Revenue (Daughters of Charity | | | | |
| Health System - St. Francis Medical Center) | 5.250% | 7/1/12 | 1,500 | 1,528 |
| California Statewide Communities Development | | | | |
| Authority Revenue (Daughters of Charity | | | | |
| Health System - St. Francis Medical Center) | 5.250% | 7/1/13 | 1,250 | 1,284 |
| California Statewide Communities Development | | | | |
| Authority Revenue (Daughters of Charity | | | | |
| Health System - St. Francis Medical Center) | 5.000% | 7/1/22 | 5,155 | 4,683 |
| California Statewide Communities Development | | | | |
| Authority Revenue (Daughters of Charity | | | | |
| Health System - St. Francis Medical Center) | 5.250% | 7/1/25 | 2,100 | 1,860 |
| California Statewide Communities Development | | | | |
| Authority Revenue (Huntington | | | | |
| Memorial Hospital) | 5.000% | 7/1/18 | 6,190 | 6,498 |
| California Statewide Communities Development | | | | |
| Authority Revenue (Kaiser Permanente) | 5.000% | 4/1/13 | 14,000 | 14,955 |
| California Statewide Communities Development | | | | |
| Authority Revenue (Kaiser Permanente) VRDO | 0.170% | 6/7/11 | 9,640 | 9,640 |
| California Statewide Communities Development | | | | |
| Authority Revenue (Lodi Memorial Hospital) | 5.000% | 12/1/22 | 8,000 | 8,100 |
| California Statewide Communities Development | | | | |
| Authority Revenue (Los Angeles Orthopaedic | | | | |
| Hospital Foundation & Orthopaedic Hospital) | 5.125% | 6/1/13 (2) | 1,530 | 1,533 |
| California Statewide Communities Development | | | | |
| Authority Revenue (Los Angeles Orthopaedic | | | | |
| Hospital Foundation & Orthopaedic Hospital) | 5.250% | 6/1/14 (2) | 1,610 | 1,613 |
| California Statewide Communities Development | | | | |
| Authority Revenue (Proposition 1A | | | | |
| Receivables Program) | 5.000% | 6/15/13 | 28,000 | 29,980 |
| California Statewide Communities Development | | | | |
| Authority Revenue (Sherman Oaks Project) | 5.500% | 8/1/15 (2) | 4,685 | 5,105 |
| California Statewide Communities Development | | | | |
| Authority Revenue (St. Joseph Health System) | 4.500% | 7/1/18 (4) | 13,395 | 14,059 |
| California Statewide Communities Development | | | | |
| Authority Senior Living Revenue | | | | |
| (Southern California Presbyterian Homes) | 7.000% | 11/15/29 | 2,000 | 2,120 |
42
California Intermediate-Term Tax-Exempt Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value |
| | Coupon | Date | ($000) | ($000) |
| California Statewide Communities Development | | | | |
| Authority Student Housing Revenue | | | | |
| (CHF-Irvine LLC - UCI East Campus | | | | |
| Apartments Phase II) | 5.500% | 5/15/26 | 5,000 | 4,900 |
| Central CA Unified School District GO | 5.500% | 8/1/29 (12) | 3,000 | 3,118 |
| Central Valley CA Financing Authority | | | | |
| Cogeneration Project Revenue | | | | |
| (Carson Ice-Gen Project) | 5.000% | 7/1/17 | 1,000 | 1,119 |
| Central Valley CA Financing Authority | | | | |
| Cogeneration Project Revenue | | | | |
| (Carson Ice-Gen Project) | 5.000% | 7/1/19 | 765 | 847 |
| Central Valley CA Financing Authority | | | | |
| Cogeneration Project Revenue | | | | |
| (Carson Ice-Gen Project) | 5.250% | 7/1/20 | 1,025 | 1,150 |
| 1 Chabot-Las Positas Community College | | | | |
| District GO TOB VRDO | 0.180% | 6/7/11 | 4,500 | 4,500 |
| Clovis CA Unified School District GO | 0.000% | 8/1/12 (14) | 4,715 | 4,635 |
| Clovis CA Unified School District GO | 0.000% | 8/1/18 (14) | 3,645 | 2,702 |
| Compton CA Unified School District GO | 5.250% | 9/1/13 (Prere.) | 1,295 | 1,433 |
| Compton CA Unified School District GO | 5.250% | 9/1/13 (Prere.) | 1,460 | 1,616 |
| Compton CA Unified School District GO | 5.250% | 9/1/13 (Prere.) | 1,645 | 1,820 |
| Contra Costa County CA Public Financing | | | | |
| Authority Lease Revenue | 5.000% | 6/1/22 (14) | 15,300 | 15,831 |
| Corona-Norco CA Unified School District GO | 0.000% | 8/1/20 (12) | 1,825 | 1,182 |
| Corona-Norco CA Unified School District GO | 0.000% | 8/1/21 (12) | 2,010 | 1,212 |
| Corona-Norco CA Unified School District GO | 0.000% | 8/1/22 (12) | 1,700 | 933 |
| Corona-Norco CA Unified School District GO | 0.000% | 8/1/23 (12) | 1,000 | 507 |
| Corona-Norco CA Unified School District GO | 0.000% | 8/1/25 (12) | 1,325 | 572 |
| Corona-Norco CA Unified School District GO | 0.000% | 8/1/26 (12) | 1,530 | 612 |
| Corona-Norco CA Unified School District GO | 0.000% | 8/1/27 (12) | 1,500 | 554 |
| Corona-Norco CA Unified School District GO | 0.000% | 8/1/28 (12) | 1,290 | 440 |
| Culver City CA Redevelopment Agency | | | | |
| Tax Allocation Revenue | 5.375% | 11/1/16 (4) | 3,260 | 3,303 |
| 3 East Bay CA Municipal Utility District | | | | |
| Water System Revenue | 5.000% | 6/1/30 | 2,005 | 2,151 |
| East Bay CA Regional Park District Revenue | 5.000% | 9/1/28 | 4,415 | 4,810 |
| Eastern California Municipal Water District Water | | | | |
| & Sewer COP | 5.000% | 7/1/26 | 5,245 | 5,464 |
| Eastern California Municipal Water District Water | | | | |
| & Sewer COP | 5.000% | 7/1/27 | 6,220 | 6,441 |
| Eastern California Municipal Water District Water | | | | |
| & Sewer COP | 5.000% | 7/1/28 | 1,000 | 1,029 |
| Fontana CA Public Financing Authority | | | | |
| Subordinate Lien Tax Allocation Revenue | 5.000% | 10/1/21 (2) | 3,335 | 3,169 |
| Fontana CA Public Financing Authority | | | | |
| Subordinate Lien Tax Allocation Revenue | 5.000% | 10/1/23 (2) | 2,875 | 2,641 |
| Fontana CA Public Financing Authority | | | | |
| Subordinate Lien Tax Allocation Revenue | 5.000% | 10/1/24 (2) | 3,475 | 3,138 |
| Fontana CA Public Financing Authority | | | | |
| Subordinate Lien Tax Allocation Revenue | 5.000% | 10/1/26 (2) | 4,480 | 3,932 |
| Fontana CA Unified School District GO | 5.250% | 8/1/26 (4) | 4,350 | 4,559 |
| Foothill-De Anza CA Community College | | | | |
| District GO | 6.000% | 8/1/11 | 1,330 | 1,343 |
43
California Intermediate-Term Tax-Exempt Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value |
| | Coupon | Date | ($000) | ($000) |
| Foothill/Eastern Corridor Agency California | | | | |
| Toll Road Revenue | 5.250% | 1/15/13 (14) | 5,000 | 4,978 |
| Foothill/Eastern Corridor Agency California | | | | |
| Toll Road Revenue | 5.375% | 1/15/15 (14) | 5,000 | 4,939 |
| Foothill/Eastern Corridor Agency California | | | | |
| Toll Road Revenue | 0.000% | 1/1/27 (ETM) | 10,000 | 5,208 |
| Foothill/Eastern Corridor Agency California | | | | |
| Toll Road Revenue | 0.000% | 1/1/28 (ETM) | 7,655 | 3,744 |
| Fresno CA Sewer Revenue | 5.000% | 9/1/24 (12) | 830 | 886 |
| Golden State Tobacco Securitization Corp. | | | | |
| California | 5.000% | 6/1/13 (Prere.) | 1,930 | 2,096 |
| Golden State Tobacco Securitization Corp. | | | | |
| California | 5.500% | 6/1/13 (Prere.) | 5,000 | 5,480 |
| Golden State Tobacco Securitization Corp. | | | | |
| California | 5.500% | 6/1/13 (Prere.) | 7,530 | 8,253 |
| Golden State Tobacco Securitization Corp. | | | | |
| California | 6.250% | 6/1/13 (Prere.) | 66,395 | 71,933 |
| 2 Golden State Tobacco Securitization Corp. | | | | |
| California | 7.800% | 6/1/13 (Prere.) | 25,170 | 28,685 |
| Golden State Tobacco Securitization Corp. | | | | |
| California | 4.500% | 6/1/27 | 76,935 | 59,090 |
| Golden State Tobacco Securitization Corp. | | | | |
| California | 5.000% | 6/1/33 | 15,000 | 10,089 |
| Golden State Tobacco Securitization Corp. | | | | |
| California | 0.000% | 6/1/37 | 30,000 | 17,606 |
| Grossmont CA Union High School District GO | 0.000% | 8/1/28 | 3,210 | 1,071 |
| Grossmont CA Union High School District GO | 0.000% | 8/1/29 | 6,965 | 2,152 |
| Grossmont-Cuyamaca CA Community | | | | |
| College District GO | 0.000% | 8/1/25 (12) | 14,010 | 6,137 |
| Grossmont-Cuyamaca CA Community | | | | |
| College District GO | 0.000% | 8/1/28 (12) | 21,875 | 7,441 |
| Huntington Beach CA Union High | | | | |
| School District GO | 5.000% | 8/1/27 (4) | 3,530 | 3,589 |
| Inland Empire Tobacco Securitization | | | | |
| Authority California Revenue | 4.625% | 6/1/21 | 8,495 | 6,542 |
| Intermodal Container Transfer Facility Joint | | | | |
| Power Authority California Revenue | | | | |
| (Union Pacific Railroad Co.) | 5.000% | 11/1/11 (2) | 1,665 | 1,696 |
| Intermodal Container Transfer Facility Joint | | | | |
| Power Authority California Revenue | | | | |
| (Union Pacific Railroad Co.) | 5.125% | 11/1/12 (2) | 2,540 | 2,694 |
| Intermodal Container Transfer Facility Joint | | | | |
| Power Authority California Revenue | | | | |
| (Union Pacific Railroad Co.) | 5.125% | 11/1/13 (2) | 1,870 | 2,043 |
| Irvine CA Public Facilities & Infrastructure | | | | |
| Authority Assessment Revenue | 4.600% | 9/2/15 (2) | 2,855 | 2,894 |
| Irvine CA Public Facilities & Infrastructure | | | | |
| Authority Assessment Revenue | 4.700% | 9/2/16 (2) | 2,965 | 3,004 |
| Irvine CA Ranch Water District Revenue VRDO | 0.110% | 6/1/11 LOC | 12,000 | 12,000 |
| Irvine CA Unified School District Financing | | | | |
| Authority Special Tax Revenue | 5.000% | 9/1/25 (2) | 8,645 | 8,083 |
| Kings River Conservation District California COP | 5.000% | 5/1/12 | 2,715 | 2,801 |
| Kings River Conservation District California COP | 5.000% | 5/1/13 | 2,315 | 2,450 |
| Kings River Conservation District California COP | 5.000% | 5/1/14 | 3,500 | 3,766 |
44
California Intermediate-Term Tax-Exempt Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value |
| | Coupon | Date | ($000) | ($000) |
| Kings River Conservation District California COP | 5.000% | 5/1/15 (ETM) | 2,590 | 2,989 |
| Kings River Conservation District California COP | 5.000% | 5/1/15 | 1,755 | 1,909 |
| Loma Linda CA Hospital Revenue | | | | |
| (Loma Linda University) | 5.000% | 12/1/18 | 8,665 | 8,371 |
| Long Beach CA Community College District GO | 0.000% | 6/1/29 (4) | 6,380 | 1,991 |
| Long Beach CA Finance Authority Lease Revenue | 6.000% | 11/1/17 (2) | 3,670 | 3,918 |
| Long Beach CA Finance Authority Lease Revenue | | | | |
| (Aquarium of the South Pacific) | 5.500% | 11/1/14 (2) | 3,435 | 3,471 |
| Long Beach CA Finance Authority Natural Gas | | | | |
| Purchase Revenue | 5.250% | 11/15/20 | 3,000 | 3,045 |
| Long Beach CA Finance Authority Natural Gas | | | | |
| Purchase Revenue | 1.585% | 11/15/25 | 16,845 | 12,950 |
| Long Beach CA Finance Authority Natural Gas | | | | |
| Purchase Revenue | 1.605% | 11/15/26 | 10,025 | 7,629 |
| Los Angeles CA Community College District GO | 5.000% | 8/1/21 (4) | 10,000 | 10,657 |
| Los Angeles CA Community College District GO | 5.000% | 8/1/24 | 6,500 | 6,919 |
| Los Angeles CA Community College District GO | 5.000% | 8/1/25 | 5,000 | 5,259 |
| Los Angeles CA Community College District GO | 5.500% | 8/1/25 | 5,000 | 5,461 |
| Los Angeles CA Community College District GO | 5.000% | 8/1/26 | 6,630 | 6,922 |
| Los Angeles CA Community College District GO | 5.000% | 8/1/27 | 4,250 | 4,408 |
| Los Angeles CA Community College District GO | 5.000% | 8/1/27 | 6,960 | 7,248 |
| Los Angeles CA Convention & Exhibit Center | | | | |
| Authority Lease Revenue | 6.125% | 8/15/11 (14) | 1,300 | 1,313 |
| Los Angeles CA COP | 5.000% | 4/1/14 (2) | 1,435 | 1,470 |
| Los Angeles CA COP | 5.000% | 4/1/15 (2) | 1,560 | 1,592 |
| Los Angeles CA COP | 5.000% | 4/1/16 (2) | 1,725 | 1,757 |
| Los Angeles CA COP | 5.000% | 4/1/18 (2) | 1,950 | 1,978 |
| Los Angeles CA Department of Airports | | | | |
| International Airport Revenue | 5.000% | 5/15/13 (14) | 10,500 | 11,315 |
| Los Angeles CA Department of Airports | | | | |
| International Airport Revenue | 5.000% | 5/15/24 | 4,000 | 4,163 |
| Los Angeles CA Department of Airports | | | | |
| International Airport Revenue | 5.250% | 5/15/25 | 3,000 | 3,157 |
| Los Angeles CA Department of Airports | | | | |
| International Airport Revenue | 5.000% | 5/15/26 | 4,000 | 4,258 |
| Los Angeles CA Department of Airports | | | | |
| International Airport Revenue | 5.250% | 5/15/28 | 10,000 | 10,684 |
| Los Angeles CA Department of Airports | | | | |
| International Airport Revenue | 5.000% | 5/15/29 | 4,385 | 4,404 |
| Los Angeles CA Department of Airports | | | | |
| International Airport Revenue | 5.250% | 5/15/29 | 10,000 | 10,623 |
| Los Angeles CA Department of Airports | | | | |
| International Airport Revenue | 5.000% | 5/15/30 | 1,835 | 1,830 |
| Los Angeles CA Department of Water | | | | |
| & Power Revenue | 5.000% | 7/1/23 (4) | 20,605 | 21,969 |
| Los Angeles CA Department of Water | | | | |
| & Power Revenue | 5.000% | 7/1/23 | 1,335 | 1,461 |
| Los Angeles CA Department of Water | | | | |
| & Power Revenue | 5.000% | 7/1/24 | 2,770 | 3,031 |
| Los Angeles CA Department of Water | | | | |
| & Power Revenue | 5.000% | 7/1/26 | 2,350 | 2,499 |
| Los Angeles CA Department of Water | | | | |
| & Power Revenue | 5.000% | 7/1/26 | 2,000 | 2,143 |
45
California Intermediate-Term Tax-Exempt Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value |
| | Coupon | Date | ($000) | ($000) |
| Los Angeles CA Department of Water | | | | |
| & Power Revenue | 5.000% | 7/1/27 | 5,000 | 5,277 |
| Los Angeles CA Department of Water | | | | |
| & Power Revenue | 5.000% | 7/1/27 | 1,655 | 1,752 |
| Los Angeles CA Department of Water | | | | |
| & Power Revenue | 5.000% | 7/1/28 | 2,000 | 2,104 |
| Los Angeles CA Department of Water | | | | |
| & Power Revenue | 5.000% | 7/1/29 | 1,670 | 1,746 |
| Los Angeles CA Department of Water | | | | |
| & Power Revenue VRDO | 0.120% | 6/7/11 | 15,925 | 15,925 |
| Los Angeles CA GO | 5.250% | 9/1/12 (3) | 2,000 | 2,120 |
| Los Angeles CA GO | 5.000% | 9/1/19 (14) | 4,055 | 4,400 |
| Los Angeles CA Municipal Improvement Corp. | | | | |
| Lease Revenue | 5.000% | 9/1/12 (14) | 7,480 | 7,837 |
| Los Angeles CA Municipal Improvement Corp. | | | | |
| Lease Revenue | 5.000% | 8/1/25 (14) | 7,725 | 7,751 |
| Los Angeles CA Municipal Improvement Corp. | | | | |
| Lease Revenue | 5.000% | 8/1/28 (14) | 8,980 | 8,898 |
| Los Angeles CA Municipal Improvement Corp. | | | | |
| Lease Revenue (Police Headquarters Facility) | 5.000% | 1/1/21 (14) | 10,830 | 11,246 |
| Los Angeles CA Municipal Improvement Corp. | | | | |
| Lease Revenue (Police Headquarters Facility) | 5.000% | 1/1/22 (14) | 6,500 | 6,691 |
| Los Angeles CA Municipal Improvement Corp. | | | | |
| Lease Revenue (Police Headquarters Facility) | 5.000% | 1/1/23 (14) | 14,700 | 15,022 |
| Los Angeles CA Unified School District GO | 5.500% | 7/1/12 (14) | 5,240 | 5,522 |
| Los Angeles CA Unified School District GO | 6.000% | 7/1/12 (3) | 1,470 | 1,556 |
| Los Angeles CA Unified School District GO | 5.000% | 7/1/13 (4) | 4,650 | 5,043 |
| Los Angeles CA Unified School District GO | 5.000% | 7/1/13 | 5,000 | 5,419 |
| Los Angeles CA Unified School District GO | 5.000% | 7/1/13 (Prere.) | 3,900 | 4,268 |
| Los Angeles CA Unified School District GO | 6.000% | 7/1/13 (3) | 3,745 | 4,128 |
| Los Angeles CA Unified School District GO | 5.000% | 7/1/14 (ETM) | 5,000 | 5,671 |
| Los Angeles CA Unified School District GO | 5.000% | 7/1/14 | 5,000 | 5,562 |
| Los Angeles CA Unified School District GO | 6.000% | 7/1/14 (3) | 1,440 | 1,642 |
| Los Angeles CA Unified School District GO | 5.000% | 7/1/15 | 6,350 | 7,203 |
| Los Angeles CA Unified School District GO | 5.000% | 7/1/16 (3) | 2,000 | 2,315 |
| Los Angeles CA Unified School District GO | 5.000% | 7/1/16 (4) | 3,000 | 3,217 |
| Los Angeles CA Unified School District GO | 5.000% | 7/1/17 (4) | 5,000 | 5,354 |
| Los Angeles CA Unified School District GO | 5.000% | 7/1/17 (4) | 3,765 | 4,367 |
| Los Angeles CA Unified School District GO | 5.500% | 7/1/17 (3) | 5,000 | 5,935 |
| Los Angeles CA Unified School District GO | 5.000% | 7/1/18 (2) | 4,000 | 4,491 |
| Los Angeles CA Unified School District GO | 5.000% | 7/1/18 (2) | 5,000 | 5,697 |
| Los Angeles CA Unified School District GO | 5.000% | 7/1/18 | 8,360 | 9,682 |
| Los Angeles CA Unified School District GO | 5.000% | 7/1/19 (3) | 5,000 | 5,444 |
| Los Angeles CA Unified School District GO | 5.000% | 7/1/19 (3) | 5,000 | 5,575 |
| Los Angeles CA Unified School District GO | 5.000% | 7/1/20 (2) | 14,135 | 15,518 |
| Los Angeles CA Unified School District GO | 5.000% | 7/1/20 (3) | 10,000 | 10,979 |
| Los Angeles CA Unified School District GO | 5.000% | 7/1/20 (3) | 5,000 | 5,489 |
| Los Angeles CA Unified School District GO | 5.000% | 7/1/21 (2) | 15,940 | 17,411 |
| Los Angeles CA Unified School District GO | 5.000% | 7/1/22 (2) | 16,760 | 17,922 |
| Los Angeles CA Unified School District GO | 4.500% | 7/1/23 (4) | 30,825 | 31,557 |
| Los Angeles CA Unified School District GO | 5.000% | 7/1/23 (2) | 6,000 | 6,403 |
| Los Angeles CA Unified School District GO | 5.000% | 7/1/23 (4) | 12,975 | 13,846 |
| Los Angeles CA Unified School District GO | 5.000% | 7/1/24 (4) | 17,210 | 18,164 |
| Los Angeles CA Unified School District GO | 5.000% | 7/1/25 (2) | 10,235 | 10,677 |
46
California Intermediate-Term Tax-Exempt Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value |
| | Coupon | Date | ($000) | ($000) |
| Los Angeles CA Unified School District GO | 5.250% | 7/1/25 | 1,600 | 1,712 |
| Los Angeles CA Unified School District GO | 4.500% | 7/1/26 (2) | 10,000 | 9,806 |
| Los Angeles CA Unified School District GO | 5.000% | 7/1/26 | 6,270 | 6,562 |
| Los Angeles CA Unified School District GO | 5.000% | 7/1/26 | 5,710 | 5,976 |
| Los Angeles CA Unified School District GO | 5.000% | 7/1/27 | 1,595 | 1,658 |
| Los Angeles CA Unified School District GO | 4.500% | 1/1/28 (14) | 7,725 | 7,368 |
| Los Angeles CA Unified School District GO | 5.000% | 7/1/28 (2) | 7,845 | 8,050 |
| Los Angeles CA Unified School District GO | 5.250% | 7/1/28 | 5,000 | 5,277 |
| Los Angeles CA Unified School District GO | 5.000% | 7/1/30 (2) | 6,485 | 6,586 |
| Los Angeles CA Wastewater System Revenue | 5.000% | 6/1/26 (14) | 26,535 | 27,542 |
| Los Angeles County CA Capital Asset | | | | |
| Leasing Corp. Revenue | 6.000% | 12/1/11 (2) | 2,360 | 2,395 |
| Los Angeles County CA Capital Asset | | | | |
| Leasing Corp. Revenue | 6.000% | 12/1/13 (2) | 2,760 | 2,929 |
| Los Angeles County CA Metropolitan | | | | |
| Transportation Authority Sales Tax Revenue | 6.000% | 7/1/11 (2) | 2,745 | 2,758 |
| Los Angeles County CA Metropolitan | | | | |
| Transportation Authority Sales Tax Revenue | 5.000% | 7/1/13 (12) | 1,450 | 1,582 |
| Los Angeles County CA Metropolitan | | | | |
| Transportation Authority Sales Tax Revenue | 5.000% | 7/1/17 (4) | 10,000 | 10,783 |
| Los Angeles County CA Metropolitan | | | | |
| Transportation Authority Sales Tax Revenue | 5.000% | 7/1/20 | 4,000 | 4,705 |
| Los Angeles County CA Metropolitan | | | | |
| Transportation Authority Sales Tax Revenue | | | | |
| VRDO | 0.120% | 6/1/11 | 7,600 | 7,600 |
| Los Angeles County CA Public Works Financing | | | | |
| Authority Lease Revenue | 5.000% | 12/1/14 (14) | 24,180 | 25,875 |
| Los Angeles County CA Public Works Financing | | | | |
| Authority Lease Revenue | 5.000% | 12/1/15 (14) | 8,940 | 9,594 |
| Los Angeles County CA Public Works Financing | | | | |
| Authority Lease Revenue | 5.000% | 12/1/19 (14) | 4,860 | 4,946 |
| Los Angeles County CA Public Works Financing | | | | |
| Authority Lease Revenue | 5.000% | 12/1/20 (14) | 6,155 | 6,185 |
| Los Angeles County CA Public Works Financing | | | | |
| Authority Lease Revenue | 5.000% | 12/1/21 (14) | 6,460 | 6,367 |
| Los Angeles County CA Public Works Financing | | | | |
| Authority Lease Revenue | 5.000% | 12/1/22 (14) | 6,790 | 6,593 |
| Los Angeles County CA Public Works Financing | | | | |
| Authority Lease Revenue | 5.000% | 12/1/23 (14) | 2,175 | 2,072 |
| Los Angeles County CA Public Works Financing | | | | |
| Authority Lease Revenue | 5.000% | 12/1/24 (14) | 3,095 | 2,904 |
| Los Angeles County CA Public Works Financing | | | | |
| Authority Revenue (Regional Park | | | | |
| & Open Space District) | 5.250% | 10/1/17 (4) | 1,000 | 1,182 |
| Los Angeles County CA Schools Regionalized | | | | |
| Business Services Corp. COP | 0.000% | 8/1/13 (ETM) | 2,010 | 1,844 |
| M-S-R California Energy Authority Revenue | 7.000% | 11/1/34 | 7,000 | 7,874 |
| M-S-R California Public Power Agency Revenue | | | | |
| (San Juan Project) | 5.000% | 7/1/13 (Prere.) | 1,500 | 1,506 |
| Metropolitan Water District of Southern | | | | |
| California Waterworks Revenue | 5.000% | 1/1/31 | 1,150 | 1,211 |
| Modesto CA Irrigation District COP | 5.000% | 7/1/17 (14) | 3,165 | 3,290 |
| Modesto CA Irrigation District COP | 5.000% | 10/1/21 (2) | 2,030 | 2,121 |
| Modesto CA Irrigation District COP | 5.000% | 10/1/22 (2) | 2,515 | 2,601 |
47
California Intermediate-Term Tax-Exempt Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value |
| | Coupon | Date | ($000) | ($000) |
| Modesto CA Irrigation District COP | 5.000% | 10/1/23 (2) | 2,645 | 2,717 |
| Modesto CA Irrigation District COP | 5.000% | 7/1/27 | 3,855 | 3,855 |
| Modesto CA Irrigation District Financing | | | | |
| Authority Revenue (Domestic Water Project) | 5.125% | 9/1/15 (2) | 4,365 | 4,374 |
| New Haven CA Unified School District GO | 12.000% | 8/1/12 (ETM) | 600 | 679 |
| New Haven CA Unified School District GO | 12.000% | 8/1/12 (4) | 2,840 | 3,216 |
| New Haven CA Unified School District GO | 12.000% | 8/1/15 (4) | 2,905 | 4,116 |
| Newport Beach CA Revenue (Hoag Memorial | | | | |
| Hospital Presbyterian) | 5.875% | 12/1/30 | 5,150 | 5,497 |
| Newport Beach CA Revenue (Hoag Memorial | | | | |
| Hospital Presbyterian) PUT | 5.000% | 2/7/13 | 5,000 | 5,334 |
| Newport Beach CA Revenue (Hoag Memorial | | | | |
| Hospital Presbyterian) VRDO | 0.150% | 6/7/11 LOC | 8,000 | 8,000 |
| 3 Newport Mesa CA Unified School District GO | 0.000% | 8/1/29 | 2,000 | 669 |
| 3 Newport Mesa CA Unified School District GO | 0.000% | 8/1/30 | 1,500 | 458 |
| 3 Newport Mesa CA Unified School District GO | 0.000% | 8/1/31 | 1,500 | 428 |
| Northern California Gas Authority No. 1 Revenue | 0.654% | 7/1/13 | 19,770 | 19,141 |
| Northern California Gas Authority No. 1 Revenue | 0.803% | 7/1/17 | 23,385 | 20,303 |
| Northern California Power Agency Capital | | | | |
| Facilities Revenue | 5.000% | 8/1/20 | 1,000 | 1,101 |
| Northern California Power Agency Revenue | | | | |
| (Hydroelectric Project) | 5.000% | 7/1/16 | 1,745 | 1,993 |
| Northern California Power Agency Revenue | | | | |
| (Hydroelectric Project) | 5.000% | 7/1/17 | 3,290 | 3,765 |
| Northern California Power Agency Revenue | | | | |
| (Hydroelectric Project) | 5.000% | 7/1/19 | 1,500 | 1,708 |
| Northern California Power Agency Revenue | | | | |
| (Hydroelectric Project) | 5.000% | 7/1/20 | 3,500 | 3,894 |
| Northern California Power Agency Revenue | | | | |
| (Hydroelectric Project) | 5.000% | 7/1/21 | 2,500 | 2,747 |
| Northern California Power Agency Revenue | | | | |
| (Hydroelectric Project) | 5.000% | 7/1/22 | 3,395 | 3,682 |
| Oakland CA Joint Powers Financing Authority | | | | |
| Lease Revenue (Administration Buildings) | 5.000% | 8/1/23 (12) | 5,000 | 5,120 |
| Oakland CA Joint Powers Financing Authority | | | | |
| Lease Revenue (Administration Buildings) | 5.000% | 8/1/24 (12) | 3,695 | 3,768 |
| Oakland CA Joint Powers Financing Authority | | | | |
| Lease Revenue (Administration Buildings) | 5.000% | 8/1/25 (12) | 5,405 | 5,483 |
| Oakland CA Joint Powers Financing Authority | | | | |
| Lease Revenue (Administration Buildings) | 5.000% | 8/1/26 (12) | 4,190 | 4,232 |
| Oakland CA Joint Powers Financing Authority | | | | |
| Lease Revenue (Convention Center) | 5.500% | 10/1/12 (2) | 3,000 | 3,095 |
| Oakland CA Joint Powers Financing Authority | | | | |
| Lease Revenue (Convention Center) | 5.500% | 10/1/13 (2) | 1,500 | 1,569 |
| Oakland CA Redevelopment Agency | | | | |
| Tax Allocation Revenue (Central District Project) | 5.500% | 9/1/13 (14) | 3,990 | 4,118 |
| Oakland CA Redevelopment Agency | | | | |
| Tax Allocation Revenue (Central District Project) | 5.500% | 9/1/15 (14) | 3,790 | 3,884 |
| Oakland CA Redevelopment Agency | | | | |
| Tax Allocation Revenue (Central District Project) | 5.500% | 9/1/16 (14) | 6,210 | 6,351 |
| Oakland CA Redevelopment Agency | | | | |
| Tax Allocation Revenue (Central District Project) | 5.000% | 9/1/20 (2) | 12,870 | 12,237 |
| Oakland CA Unified School District GO | 5.000% | 8/1/19 (4) | 13,425 | 14,145 |
| Orange County CA Airport Revenue | 5.000% | 7/1/17 (4) | 1,725 | 1,834 |
48
California Intermediate-Term Tax-Exempt Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value |
| | Coupon | Date | ($000) | ($000) |
| Orange County CA Development Agency | | | | |
| Tax Allocation Revenue | 5.250% | 9/1/14 (14) | 1,415 | 1,433 |
| Orange County CA Development Agency | | | | |
| Tax Allocation Revenue | 5.250% | 9/1/15 (14) | 1,485 | 1,504 |
| Orange County CA Development Agency | | | | |
| Tax Allocation Revenue | 5.375% | 9/1/16 (14) | 1,570 | 1,590 |
| Orange County CA Water District COP | 5.000% | 8/15/29 | 6,925 | 7,322 |
| 3 Palm Springs CA Unified School District GO | 5.000% | 8/1/28 | 1,000 | 1,052 |
| 3 Palm Springs CA Unified School District GO | 5.000% | 8/1/29 | 1,500 | 1,566 |
| 3 Palm Springs CA Unified School District GO | 5.000% | 8/1/30 | 1,500 | 1,554 |
| 3 Palm Springs CA Unified School District GO | 5.000% | 8/1/31 | 1,500 | 1,542 |
| Palo Alto CA Unified School District GO | 0.000% | 8/1/24 | 15,890 | 8,003 |
| Palomar Pomerado Health System | | | | |
| California Revenue | 5.375% | 11/1/12 (14) | 7,080 | 7,089 |
| Palomar Pomerado Health System | | | | |
| California Revenue COP | 6.625% | 11/1/29 | 5,000 | 5,040 |
| Pasadena CA Electric Revenue | 5.000% | 6/1/12 (Prere.) | 2,320 | 2,430 |
| Pasadena CA Electric Revenue | 5.000% | 6/1/12 (Prere.) | 2,535 | 2,656 |
| Pomona CA Single Family Mortgage Revenue | 7.600% | 5/1/23 (ETM) | 10,540 | 13,907 |
| Port of Oakland CA Revenue | 5.000% | 11/1/11 (14) | 5,160 | 5,249 |
| Port of Oakland CA Revenue | 5.000% | 11/1/12 (14) | 2,650 | 2,789 |
| Port of Oakland CA Revenue | 5.000% | 11/1/20 (14) | 4,825 | 5,093 |
| Port of Oakland CA Revenue | 5.000% | 11/1/26 (14) | 9,700 | 9,758 |
| Poway CA Unified School District GO | 0.000% | 8/1/17 | 2,000 | 1,604 |
| Poway CA Unified School District GO | 0.000% | 8/1/18 | 4,565 | 3,384 |
| Poway CA Unified School District GO | 0.000% | 8/1/19 | 5,425 | 3,743 |
| Poway CA Unified School District GO | 0.000% | 8/1/20 | 3,280 | 2,082 |
| Poway CA Unified School District GO | 0.000% | 8/1/28 | 9,070 | 3,025 |
| Rancho Cucamonga CA Redevelopment | | | | |
| Agency Tax Allocation Revenue | | | | |
| (Rancho Redevelopment Project) | 5.000% | 9/1/15 (2) | 2,835 | 2,955 |
| Rancho Cucamonga CA Redevelopment | | | | |
| Agency Tax Allocation Revenue | | | | |
| (Rancho Redevelopment Project) | 5.000% | 9/1/16 (2) | 5,100 | 5,269 |
| Rancho Mirage CA Joint Powers Financing | | | | |
| Authority Revenue (Eisenhower Medical Center) | 5.000% | 7/1/27 | 12,000 | 10,830 |
| Regents of The University of California Revenue | | | | |
| (Multiple Purpose Project) | 5.000% | 9/1/11 (Prere.) | 4,820 | 4,926 |
| Riverside CA Electric Revenue | 5.000% | 10/1/24 (4) | 1,000 | 1,059 |
| Riverside CA Electric Revenue | 5.000% | 10/1/25 (4) | 2,000 | 2,094 |
| Riverside CA Electric Revenue | 5.000% | 10/1/26 (4) | 2,500 | 2,599 |
| Riverside CA Electric Revenue | 5.000% | 10/1/27 (4) | 3,570 | 3,687 |
| Rocklin CA Unified School District GO | 0.000% | 8/1/23 (14) | 7,030 | 3,517 |
| Rocklin CA Unified School District GO | 0.000% | 8/1/24 (14) | 2,965 | 1,374 |
| Roseville CA Electric System Revenue | 5.000% | 2/1/30 | 6,120 | 6,236 |
| Roseville CA Electric System Revenue | | | | |
| COP VRDO | 0.170% | 6/7/11 LOC | 6,400 | 6,400 |
| Roseville CA Natural Gas Financing Authority | | | | |
| Gas Revenue | 5.000% | 2/15/18 | 4,180 | 4,249 |
| Roseville CA Natural Gas Financing Authority | | | | |
| Gas Revenue | 5.000% | 2/15/19 | 10,000 | 9,982 |
| Roseville CA Natural Gas Financing Authority | | | | |
| Gas Revenue | 5.000% | 2/15/20 | 2,000 | 1,993 |
| Sacramento CA Cogeneration Authority Revenue | 5.000% | 7/1/17 | 1,250 | 1,425 |
49
California Intermediate-Term Tax-Exempt Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value |
| | Coupon | Date | ($000) | ($000) |
| Sacramento CA Cogeneration Authority Revenue | 5.000% | 7/1/18 | 725 | 824 |
| Sacramento CA Cogeneration Authority Revenue | 5.000% | 7/1/19 | 900 | 1,015 |
| Sacramento CA Cogeneration Authority Revenue | 5.250% | 7/1/20 | 1,250 | 1,430 |
| Sacramento CA Cogeneration Authority Revenue | 5.250% | 7/1/21 | 1,000 | 1,140 |
| Sacramento CA Financing Authority | | | | |
| Lease Revenue | 5.375% | 12/1/12 (Prere.) | 4,395 | 4,723 |
| Sacramento CA Financing Authority | | | | |
| Lease Revenue | 5.000% | 11/1/14 (14) | 2,910 | 3,003 |
| Sacramento CA Financing Authority | | | | |
| Lease Revenue | 5.375% | 12/1/14 (4) | 1,630 | 1,732 |
| Sacramento CA Financing Authority | | | | |
| Lease Revenue | 5.000% | 12/1/19 (14) | 12,860 | 13,414 |
| Sacramento CA Financing Authority | | | | |
| Lease Revenue | 5.000% | 12/1/20 (14) | 13,670 | 14,188 |
| Sacramento CA Municipal Utility District | | | | |
| Financing Authority Revenue | 5.000% | 7/1/21 (14) | 7,710 | 7,831 |
| Sacramento CA Municipal Utility District Revenue | 5.000% | 11/15/12 (14) | 2,185 | 2,317 |
| Sacramento CA Municipal Utility District Revenue | 5.250% | 8/15/13 (4) | 1,000 | 1,009 |
| Sacramento CA Municipal Utility District Revenue | 5.250% | 8/15/14 (4) | 2,500 | 2,520 |
| Sacramento CA Municipal Utility District Revenue | 5.000% | 7/1/17 (14) | 4,000 | 4,247 |
| Sacramento CA Municipal Utility District Revenue | 5.250% | 7/1/24 (2) | 10,000 | 10,975 |
| Sacramento CA Municipal Utility District Revenue | 5.000% | 8/15/24 (4) | 7,550 | 8,009 |
| Sacramento CA Municipal Utility District Revenue | 5.000% | 8/15/25 (4) | 10,275 | 10,770 |
| Sacramento CA Municipal Utility District Revenue | 5.000% | 8/15/26 (4) | 5,000 | 5,199 |
| Sacramento County CA Airport Revenue | 5.000% | 7/1/23 (4) | 2,000 | 2,078 |
| Sacramento County CA Airport Revenue | 5.000% | 7/1/24 (4) | 2,500 | 2,627 |
| Sacramento County CA Airport Revenue | 5.000% | 7/1/24 (4) | 1,785 | 1,887 |
| Sacramento County CA Airport Revenue | 5.000% | 7/1/26 | 2,650 | 2,700 |
| Sacramento County CA Airport Revenue | 5.000% | 7/1/28 | 1,250 | 1,264 |
| Sacramento County CA Airport Revenue | 5.000% | 7/1/30 | 3,615 | 3,638 |
| Sacramento County CA Sanitation Districts | | | | |
| Financing Authority Revenue | 5.000% | 12/1/21 (14) | 1,850 | 2,044 |
| Sacramento County CA Sanitation Districts | | | | |
| Financing Authority Revenue | 5.000% | 12/1/22 (14) | 5,495 | 6,003 |
| Sacramento County CA Sanitation Districts | | | | |
| Financing Authority Revenue | 5.000% | 12/1/23 (14) | 7,030 | 7,615 |
| Sacramento County CA Water Financing | | | | |
| Authority Revenue (Agency Zones 40 & 41) | 5.000% | 6/1/13 (Prere.) | 1,235 | 1,345 |
| San Bernardino County CA Justice Center | | | | |
| & Airport COP | 5.000% | 7/1/14 (14) | 5,585 | 5,838 |
| San Bernardino County CA Medical Center COP | 5.500% | 8/1/17 (14) | 4,710 | 4,907 |
| San Bernardino County CA Medical Center COP | 6.500% | 8/1/17 (14) | 5,000 | 5,361 |
| San Bernardino County CA Medical Center COP | 5.500% | 8/1/22 (14) | 8,940 | 9,338 |
| San Diego CA Financing Authority Lease Revenue | 5.250% | 4/1/12 (2) | 3,000 | 3,009 |
| San Diego CA Financing Authority Lease Revenue | 5.250% | 4/1/14 (2) | 5,680 | 5,693 |
| San Diego CA Public Facilities Financing | | | | |
| Authority Sewer Revenue | 5.000% | 5/15/24 | 3,000 | 3,261 |
| San Diego CA Public Facilities Financing | | | | |
| Authority Sewer Revenue | 5.250% | 5/15/25 | 2,000 | 2,180 |
| San Diego CA Public Facilities Financing | | | | |
| Authority Sewer Revenue | 5.250% | 5/15/26 | 5,000 | 5,447 |
| San Diego CA Public Facilities Financing | | | | |
| Authority Sewer Revenue | 5.000% | 5/15/27 | 6,000 | 6,338 |
50
California Intermediate-Term Tax-Exempt Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value |
| | Coupon | Date | ($000) | ($000) |
| San Diego CA Public Facilities Financing | | | | |
| Authority Sewer Revenue | 5.250% | 5/15/27 | 5,000 | 5,404 |
| San Diego CA Public Facilities Financing | | | | |
| Authority Sewer Revenue | 5.000% | 5/15/28 | 1,825 | 1,918 |
| San Diego CA Public Facilities Financing | | | | |
| Authority Water Revenue | 5.000% | 8/1/27 | 4,215 | 4,419 |
| San Diego CA Public Facilities Financing | | | | |
| Authority Water Revenue | 5.125% | 8/1/28 | 5,000 | 5,253 |
| San Diego CA Public Facilities Financing | | | | |
| Authority Water Revenue | 5.250% | 8/1/28 | 5,355 | 5,703 |
| San Diego CA Unified School District GO | 0.000% | 7/1/14 (14) | 3,400 | 3,178 |
| San Diego CA Unified School District GO | 0.000% | 7/1/18 (14) | 9,500 | 7,075 |
| San Diego CA Unified School District GO | 5.500% | 7/1/20 (4) | 9,490 | 11,360 |
| San Diego CA Unified School District GO | 5.500% | 7/1/21 (4) | 11,470 | 13,346 |
| San Diego CA Unified School District GO | 5.500% | 7/1/22 (4) | 12,790 | 14,861 |
| San Diego CA Unified School District GO | 5.500% | 7/1/23 (4) | 9,210 | 10,652 |
| San Diego CA Unified School District GO | 0.000% | 7/1/26 | 8,425 | 3,490 |
| San Diego CA Unified School District GO | 5.500% | 7/1/26 (4) | 7,490 | 8,579 |
| San Diego CA Unified School District GO | 0.000% | 7/1/27 | 8,500 | 3,259 |
| San Diego CA Unified School District GO | 0.000% | 7/1/28 | 8,000 | 2,838 |
| San Diego CA Unified School District GO | 0.000% | 7/1/30 | 9,985 | 2,990 |
| San Diego CA Unified School District GO | 0.000% | 7/1/30 | 2,500 | 749 |
| San Diego County CA COP | 5.000% | 2/1/22 (2) | 2,000 | 2,093 |
| San Diego County CA COP | 5.000% | 2/1/24 (2) | 1,500 | 1,548 |
| San Diego County CA COP | 5.000% | 2/1/26 (2) | 1,000 | 1,020 |
| San Diego County CA COP VRDO | 0.190% | 6/7/11 LOC | 15,455 | 15,455 |
| San Diego County CA Regional Building | | | | |
| Authority Lease Revenue (County Operations | | | | |
| Center & Annex Redevelopment Project) | 5.000% | 2/1/23 | 4,285 | 4,604 |
| San Diego County CA Regional Building | | | | |
| Authority Lease Revenue (County Operations | | | | |
| Center & Annex Redevelopment Project) | 5.000% | 2/1/25 | 4,820 | 5,061 |
| San Diego County CA Regional Building | | | | |
| Authority Lease Revenue (County Operations | | | | |
| Center & Annex Redevelopment Project) | 5.250% | 2/1/26 | 1,140 | 1,205 |
| San Diego County CA Regional Building | | | | |
| Authority Lease Revenue (County Operations | | | | |
| Center & Annex Redevelopment Project) | 5.000% | 2/1/27 | 2,420 | 2,501 |
| San Diego County CA Regional Building | | | | |
| Authority Lease Revenue (County Operations | | | | |
| Center & Annex Redevelopment Project) | 5.500% | 2/1/28 | 5,780 | 6,124 |
| San Diego County CA Regional Transportation | | | | |
| Authority Sales Tax Revenue VRDO | 0.150% | 6/7/11 | 4,880 | 4,880 |
| San Diego County CA Water Authority | | | | |
| Financing Agency Water Revenue | 5.000% | 5/1/27 | 2,000 | 2,151 |
| San Diego County CA Water Authority | | | | |
| Revenue COP | 5.250% | 5/1/15 (14) | 6,215 | 7,075 |
| San Diego County CA Water Authority | | | | |
| Revenue COP | 5.250% | 5/1/16 (14) | 7,880 | 9,170 |
| San Diego County CA Water Authority | | | | |
| Revenue COP | 5.250% | 5/1/21 (14) | 6,725 | 7,806 |
| San Diego County CA Water Authority | | | | |
| Revenue COP | 5.250% | 5/1/22 (14) | 7,075 | 8,167 |
51
California Intermediate-Term Tax-Exempt Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value |
| | Coupon | Date | ($000) | ($000) |
| San Francisco CA Bay Area Rapid Transit | | | | |
| District Sales Tax Revenue | 5.000% | 7/1/23 | 9,560 | 10,830 |
| San Francisco CA City & County | | | | |
| (Laguna Honda Hospital) GO | 5.000% | 6/15/16 (2) | 8,000 | 8,491 |
| San Francisco CA City & County International | | | | |
| Airport Revenue | 5.250% | 5/1/12 (Prere.) | 2,430 | 2,542 |
| San Francisco CA City & County International | | | | |
| Airport Revenue | 5.250% | 5/1/12 (Prere.) | 3,185 | 3,331 |
| San Francisco CA City & County International | | | | |
| Airport Revenue | 5.250% | 5/1/12 (Prere.) | 4,015 | 4,199 |
| San Francisco CA City & County International | | | | |
| Airport Revenue | 5.250% | 5/1/20 (14) | 5,000 | 5,684 |
| San Francisco CA City & County International | | | | |
| Airport Revenue | 5.000% | 5/1/21 | 5,000 | 5,512 |
| San Francisco CA City & County International | | | | |
| Airport Revenue | 5.000% | 5/1/24 (14) | 10,000 | 10,368 |
| San Francisco CA City & County International | | | | |
| Airport Revenue | 5.000% | 5/1/25 (14) | 2,000 | 2,058 |
| San Francisco CA City & County International | | | | |
| Airport Revenue | 5.250% | 5/1/26 | 25,000 | 26,118 |
| San Francisco CA City & County International | | | | |
| Airport Revenue | 5.000% | 5/1/27 (14) | 13,075 | 13,320 |
| San Francisco CA City & County Public Utility | | | | |
| Commission Revenue | 5.000% | 11/1/29 | 10,000 | 10,533 |
| San Francisco CA City & County Public Utility | | | | |
| Commission Revenue | 5.000% | 11/1/29 | 2,460 | 2,591 |
| San Francisco CA City & County Public Utility | | | | |
| Commission Revenue | 5.000% | 11/1/30 | 2,705 | 2,853 |
| San Francisco CA City & County Public Utility | | | | |
| Commission Water Revenue | 5.000% | 11/1/26 | 2,995 | 3,252 |
| San Francisco CA City & County Redevelopment | | | | |
| Agency Lease Revenue (Moscone Center) | 5.000% | 7/1/16 (4) | 3,270 | 3,313 |
| San Francisco CA City & County Water Revenue | 5.000% | 11/1/12 (Prere.) | 4,865 | 5,182 |
| San Joaquin County CA Delta Community College | | | | |
| District Election GO | 0.000% | 8/1/26 (4) | 15,500 | 6,077 |
| San Joaquin County CA Delta Community College | | | | |
| District Election GO | 0.000% | 8/1/27 (4) | 15,500 | 5,520 |
| San Joaquin Hills CA Transportation Corridor | | | | |
| Agency Toll Road Revenue | 0.000% | 1/15/14 (14) | 5,500 | 4,686 |
| San Joaquin Hills CA Transportation Corridor | | | | |
| Agency Toll Road Revenue | 0.000% | 1/1/20 (ETM) | 2,500 | 1,976 |
| San Joaquin Hills CA Transportation Corridor | | | | |
| Agency Toll Road Revenue | 0.000% | 1/1/23 (ETM) | 16,000 | 10,680 |
| San Joaquin Hills CA Transportation Corridor | | | | |
| Agency Toll Road Revenue | 0.000% | 1/15/24 (14) | 7,000 | 2,538 |
| San Joaquin Hills CA Transportation Corridor | | | | |
| Agency Toll Road Revenue | 0.000% | 1/1/25 (ETM) | 17,750 | 10,532 |
| San Joaquin Hills CA Transportation Corridor | | | | |
| Agency Toll Road Revenue | 0.000% | 1/1/26 (ETM) | 14,350 | 8,031 |
| San Jose CA Airport Revenue | 5.375% | 3/1/13 (4) | 4,945 | 5,208 |
| San Jose CA Airport Revenue | 5.375% | 3/1/14 (4) | 7,550 | 7,919 |
| San Jose CA Airport Revenue | 5.375% | 3/1/15 (4) | 7,950 | 8,313 |
| San Jose CA Airport Revenue | 5.000% | 3/1/24 (2) | 2,035 | 2,071 |
| San Jose CA Airport Revenue | 5.000% | 3/1/25 (2) | 3,385 | 3,412 |
52
California Intermediate-Term Tax-Exempt Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value |
| | Coupon | Date | ($000) | ($000) |
| San Jose CA Airport Revenue | 5.000% | 3/1/26 (2) | 3,850 | 3,852 |
| San Jose CA Financing Authority Lease Revenue | 5.000% | 9/1/13 (14) | 9,570 | 9,659 |
| San Jose CA Redevelopment Agency | | | | |
| Tax Allocation Revenue | 5.250% | 8/1/13 (14) | 5,000 | 5,024 |
| San Jose CA Redevelopment Agency | | | | |
| Tax Allocation Revenue | 5.250% | 8/1/14 (14) | 5,000 | 4,977 |
| San Jose CA Redevelopment Agency | | | | |
| Tax Allocation Revenue | 5.000% | 8/1/21 | 1,270 | 1,229 |
| San Jose CA Redevelopment Agency | | | | |
| Tax Allocation Revenue | 5.000% | 8/1/23 | 1,140 | 1,062 |
| San Jose CA Redevelopment Agency | | | | |
| Tax Allocation Revenue | 5.000% | 8/1/24 (14) | 16,360 | 14,183 |
| San Jose CA Redevelopment Agency | | | | |
| Tax Allocation Revenue | 5.000% | 8/1/25 (14) | 11,505 | 9,827 |
| San Jose CA Redevelopment Agency | | | | |
| Tax Allocation Revenue | 5.125% | 8/1/25 | 570 | 517 |
| San Jose CA Redevelopment Agency | | | | |
| Tax Allocation Revenue | 5.250% | 8/1/26 | 800 | 725 |
| San Jose CA Redevelopment Agency | | | | |
| Tax Allocation Revenue | 5.375% | 8/1/29 | 1,355 | 1,246 |
| San Mateo CA Union High School District GO | 0.000% | 9/1/12 (14) | 1,180 | 1,158 |
| San Mateo CA Union High School District GO | 0.000% | 9/1/13 (14) | 1,715 | 1,637 |
| San Mateo CA Union High School District GO | 0.000% | 9/1/14 (14) | 1,500 | 1,390 |
| San Mateo County CA Community | | | | |
| College District GO | 5.375% | 9/1/15 (14) | 1,300 | 1,368 |
| San Mateo County CA Community | | | | |
| College District GO | 0.000% | 9/1/21 (14) | 4,645 | 2,906 |
| San Mateo County CA Community | | | | |
| College District GO | 0.000% | 9/1/22 (14) | 5,675 | 3,322 |
| San Mateo County CA Community | | | | |
| College District GO | 0.000% | 9/1/24 (14) | 2,825 | 1,427 |
| San Mateo County CA Community | | | | |
| College District GO | 0.000% | 9/1/25 (14) | 4,000 | 1,835 |
| San Mateo County CA Community | | | | |
| College District GO | 5.000% | 9/1/26 | 3,170 | 3,365 |
| San Mateo County CA Joint Powers Financing | | | | |
| Authority Lease Revenue | | | | |
| (Youth Services Campus) | 4.625% | 7/15/25 | 2,455 | 2,459 |
| San Mateo County CA Joint Powers Financing | | | | |
| Authority Lease Revenue | | | | |
| (Youth Services Campus) | 5.250% | 7/15/28 | 2,000 | 2,032 |
| Santa Ana CA Community Redevelopment | | | | |
| Agency Tax Allocation Revenue | | | | |
| (South Main Street) | 5.000% | 9/1/18 (14) | 2,685 | 2,695 |
| Santa Barbara County CA COP | 5.250% | 12/1/12 (2) | 1,000 | 1,042 |
| Santa Barbara County CA COP | 5.250% | 12/1/13 (2) | 2,355 | 2,453 |
| Santa Barbara County CA COP | 5.250% | 12/1/15 (2) | 1,065 | 1,109 |
| Santa Barbara County CA COP | 5.250% | 12/1/16 (2) | 1,760 | 1,833 |
| Santa Clara CA Electric Revenue | 5.250% | 7/1/18 (14) | 1,720 | 1,827 |
| Santa Clara CA Electric Revenue | 5.000% | 7/1/30 | 1,000 | 1,002 |
| Santa Clara CA Electric Revenue | 5.250% | 7/1/32 | 2,500 | 2,535 |
| Santa Clara County CA Financing Authority | | | | |
| Lease Revenue (Multiple Facilities Projects) | 5.000% | 11/15/17 | 11,540 | 13,061 |
53
California Intermediate-Term Tax-Exempt Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value |
| | Coupon | Date | ($000) | ($000) |
| Santa Clara County CA Financing Authority Lease | | | | |
| Revenue (Multiple Facilities Projects) | 5.000% | 11/15/18 | 7,920 | 8,916 |
| Santa Clara County CA Financing Authority Lease | | | | |
| Revenue (Multiple Facilities Projects) | 5.000% | 5/15/28 | 10,000 | 10,218 |
| Santa Clara County CA Financing Authority Lease | | | | |
| Revenue (VMC Facility Replacement Project) | 7.750% | 11/15/11 (2) | 1,000 | 1,032 |
| Santa Clara Valley CA Transportation | | | | |
| Authority Sales Tax Revenue VRDO | 0.130% | 6/7/11 | 5,900 | 5,900 |
| Santa Clara Valley CA Transportation | | | | |
| Authority Sales Tax Revenue VRDO | 0.140% | 6/7/11 | 4,800 | 4,800 |
| Santa Monica CA Community College District GO | 0.000% | 8/1/26 | 11,025 | 4,680 |
| Santa Rosa CA Wastewater Revenue | 0.000% | 9/1/28 (4) | 11,095 | 3,681 |
| Simi Valley CA Unified School District GO | 0.000% | 8/1/26 (4) | 3,030 | 1,210 |
| Simi Valley CA Unified School District GO | 0.000% | 8/1/27 (4) | 2,900 | 1,064 |
| Solano County CA COP | 5.000% | 11/1/17 (14) | 4,110 | 4,541 |
| Solano County CA COP | 5.000% | 11/1/18 (14) | 3,810 | 4,135 |
| Solano County CA COP | 5.000% | 11/1/19 (14) | 3,995 | 4,263 |
| Solano County CA COP | 5.000% | 11/1/20 (14) | 4,195 | 4,428 |
| Solano County CA COP | 5.000% | 11/1/21 (14) | 4,405 | 4,605 |
| South Orange County CA Public Financing | | | | |
| Authority Special Tax Revenue | 7.000% | 9/1/11 (14) | 3,490 | 3,540 |
| South Orange County CA Public Financing | | | | |
| Authority Special Tax Revenue | 5.375% | 8/15/12 (4) | 5,605 | 5,626 |
| South Orange County CA Public Financing | | | | |
| Authority Special Tax Revenue | | | | |
| (Portola Hills/Lomas Laguna) | 5.250% | 8/15/13 (2) | 2,290 | 2,293 |
| South San Francisco CA Redevelopment | | | | |
| Agency Tax Allocation Revenue | 5.000% | 9/1/31 (14) | 7,255 | 6,221 |
| Southern California Public Power Authority | | | | |
| Revenue | 5.000% | 7/1/28 | 10,000 | 10,544 |
| Southern California Public Power Authority | | | | |
| Revenue | 5.000% | 7/1/29 | 5,000 | 5,242 |
| Southern California Public Power Authority | | | | |
| Revenue (Linden Windenergy Project) | 5.000% | 7/1/28 | 3,500 | 3,691 |
| Southern California Public Power Authority | | | | |
| Revenue (Linden Windenergy Project) | 5.000% | 7/1/29 | 2,500 | 2,621 |
| Southern California Public Power Authority | | | | |
| Revenue (Linden Windenergy Project) | 5.000% | 7/1/30 | 2,500 | 2,606 |
| Southern California Public Power Authority | | | | |
| Revenue (Mead-Adelanto Project) VRDO | 0.110% | 6/1/11 | 6,100 | 6,100 |
| Southern California Public Power Authority | | | | |
| Revenue (Milford Wind Corridor Phase I Project) | 5.000% | 7/1/29 | 5,000 | 5,231 |
| Southern California Public Power Authority | | | | |
| Revenue (Natural Gas Project) | 5.000% | 11/1/18 | 1,040 | 1,052 |
| Southern California Public Power Authority | | | | |
| Revenue (Natural Gas Project) | 5.250% | 11/1/23 | 5,250 | 5,193 |
| Southern California Public Power Authority | | | | |
| Revenue (Natural Gas Project) | 5.250% | 11/1/24 | 5,000 | 4,917 |
| Southern California Public Power Authority | | | | |
| Revenue (Natural Gas Project) | 5.250% | 11/1/25 | 10,280 | 10,068 |
| Southern California Public Power Authority | | | | |
| Revenue (Natural Gas Project) | 5.250% | 11/1/26 | 2,500 | 2,438 |
| Southern California Public Power Authority | | | | |
| Revenue (San Juan Unit 3) | 5.500% | 1/1/13 (4) | 3,500 | 3,749 |
54
California Intermediate-Term Tax-Exempt Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value |
| | Coupon | Date | ($000) | ($000) |
| Southern California Public Power Authority | | | | |
| Revenue (Transmission Project) | 5.000% | 7/1/23 | 5,000 | 5,404 |
| Tobacco Securitization Authority Revenue | | | | |
| (Southern California Tobacco Settlement) | 4.750% | 6/1/25 | 8,490 | 7,145 |
| Tulare County CA COP | 5.000% | 8/15/15 (14) | 6,460 | 7,091 |
| Turlock CA Irrigation District Revenue | 5.000% | 1/1/21 | 3,805 | 4,105 |
| Turlock CA Irrigation District Revenue | 5.000% | 1/1/22 | 5,415 | 5,768 |
| University of California Regents Medical Center | | | | |
| Revenue | 5.000% | 5/15/19 (14) | 5,075 | 5,539 |
| University of California Regents Medical Center | | | | |
| Revenue | 5.000% | 5/15/20 (14) | 5,065 | 5,447 |
| University of California Regents Medical Center | | | | |
| Revenue | 5.000% | 5/15/25 | 19,385 | 20,101 |
| University of California Regents Medical Center | | | | |
| Revenue | 5.000% | 5/15/26 | 14,095 | 14,511 |
| University of California Regents Medical Center | | | | |
| Revenue VRDO | 0.110% | 6/1/11 | 1,400 | 1,400 |
| University of California Revenue | 3.000% | 5/15/12 | 2,000 | 2,051 |
| University of California Revenue | 5.000% | 5/15/17 (4) | 20,620 | 23,363 |
| University of California Revenue | 5.000% | 5/15/18 (4) | 10,000 | 11,277 |
| University of California Revenue | 5.000% | 5/15/19 (4) | 4,275 | 4,807 |
| University of California Revenue | 5.000% | 5/15/20 (4) | 30,900 | 33,581 |
| University of California Revenue | 5.000% | 5/15/21 (4) | 14,915 | 16,098 |
| University of California Revenue | 4.750% | 5/15/23 (14) | 11,185 | 11,569 |
| University of California Revenue | 5.750% | 5/15/25 | 3,000 | 3,446 |
| University of California Revenue | 4.750% | 5/15/26 | 21,320 | 21,613 |
| University of California Revenue | 5.000% | 5/15/26 (14) | 10,000 | 10,555 |
| 1 University of California Revenue TOB VRDO | 0.180% | 6/7/11 (4) | 15,230 | 15,230 |
| 1 University of California Revenue TOB VRDO | 0.240% | 6/7/11 | 5,000 | 5,000 |
| Ventura County CA Community College District GO | 5.000% | 8/1/16 (14) | 3,100 | 3,264 |
| Ventura County CA Community College District GO | 5.000% | 8/1/17 (14) | 2,300 | 2,420 |
| Ventura County CA Community College District GO | 0.000% | 8/1/28 | 15,000 | 5,294 |
| Vista CA Unified School District GO | 5.375% | 8/1/12 (Prere.) | 1,695 | 1,794 |
| Vista CA Unified School District GO | 5.375% | 8/1/12 (Prere.) | 1,455 | 1,540 |
| Vista CA Unified School District GO | 5.375% | 8/1/15 (4) | 150 | 157 |
| Vista CA Unified School District GO | 5.375% | 8/1/16 (4) | 190 | 199 |
| Vista CA Unified School District GO | 5.375% | 8/1/17 (4) | 160 | 167 |
| Washington Township CA Health Care District | | | | |
| Revenue | 6.000% | 7/1/29 | 1,000 | 1,009 |
| West Contra Costa CA Unified School District GO | 6.000% | 8/1/26 | 5,000 | 5,460 |
| Western Municipal Water District Facilities | | | | |
| Authority California Water Revenue VRDO | 0.120% | 6/7/11 LOC | 5,000 | 5,000 |
| | | | | 5,104,281 |
| Puerto Rico (0.9%) | | | | |
| Puerto Rico Aqueduct & Sewer Authority Revenue | 6.250% | 7/1/12 (ETM) | 1,000 | 1,064 |
| Puerto Rico Electric Power Authority Revenue | 6.000% | 7/1/12 (14) | 8,235 | 8,627 |
| Puerto Rico GO | 6.500% | 7/1/11 (14) | 2,500 | 2,511 |
| Puerto Rico Highway & Transportation Authority | | | | |
| Revenue | 5.500% | 7/1/13 (14) | 2,250 | 2,311 |
| Puerto Rico Infrastructure Financing Authority | | | | |
| Special Tax Revenue | 5.500% | 7/1/21 (3) | 5,000 | 5,269 |
| Puerto Rico Infrastructure Financing Authority | | | | |
| Special Tax Revenue | 5.500% | 7/1/23 (3) | 1,585 | 1,656 |
| Puerto Rico Municipal Finance Agency GO | 5.000% | 7/1/14 (11) | 1,360 | 1,439 |
55
California Intermediate-Term Tax-Exempt Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value |
| | Coupon | Date | ($000) | ($000) |
| Puerto Rico Municipal Finance Agency GO | 5.250% | 7/1/16 (11) | 1,400 | 1,504 |
| Puerto Rico Municipal Finance Agency GO | 5.250% | 7/1/18 (11) | 1,000 | 1,058 |
| Puerto Rico Public Finance Corp. Revenue PUT | 5.750% | 2/1/12 LOC | 20,000 | 20,339 |
| | | | | 45,778 |
| Virgin Islands (0.0%) | | | | |
| Virgin Islands Public Finance Authority Revenue | 5.250% | 10/1/15 | 2,200 | 2,377 |
| Total Tax-Exempt Municipal Bonds (Cost $5,057,696) | | | | 5,152,436 |
| Other Assets and Liabilities (1.2%) | | | | |
| Other Assets | | | | 93,542 |
| Liabilities | | | | (32,003) |
| | | | | 61,539 |
| Net Assets (100%) | | | | 5,213,975 |
| |
| At May 31, 2011, net assets consisted of: | |
| | Amount |
| | ($000) |
| Paid-in Capital | 5,228,858 |
| Undistributed Net Investment Income | — |
| Accumulated Net Realized Losses | (108,153) |
| Unrealized Appreciation (Depreciation) | |
| Investment Securities | 94,740 |
| Futures Contracts | (1,470) |
| Net Assets | 5,213,975 |
| |
| Investor Shares—Net Assets | |
| Applicable to 106,191,619 outstanding $.001 par value shares of | |
| beneficial interest (unlimited authorization) | 1,163,123 |
| Net Asset Value Per Share—Investor Shares | $10.95 |
| |
| Admiral Shares—Net Assets | |
| Applicable to 369,836,853 outstanding $.001 par value shares of | |
| beneficial interest (unlimited authorization) | 4,050,852 |
| Net Asset Value Per Share—Admiral Shares | $10.95 |
See Note A in Notes to Financial Statements.
1 Security exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At May 31, 2011, the aggregate value of these securities was $85,505,000, representing 1.6% of net assets.
2 Securities with a value of $12,939,000 have been segregated as initial margin for open futures contracts.
3 Security purchased on a when-issued or delayed-delivery basis for which the fund has not taken delivery as of May 31, 2011.
A key to abbreviations and other references follows the Statement of Net Assets.
See accompanying Notes, which are an integral part of the Financial Statements.
56
California Intermediate-Term Tax-Exempt Fund
Key to Abbreviations
ARS—Auction Rate Security.
BAN—Bond Anticipation Note.
COP—Certificate of Participation.
CP—Commercial Paper.
FR—Floating Rate.
GAN—Grant Anticipation Note.
GO—General Obligation Bond.
PUT—Put Option Obligation.
RAN—Revenue Anticipation Note.
TAN—Tax Anticipation Note.
TOB—Tender Option Bond.
TRAN—Tax Revenue Anticipation Note.
VRDO—Variable Rate Demand Obligation.
VRDP—Variable Rate Demand Preferred.
(ETM)—Escrowed to Maturity.
(Prere.)—Prerefunded.
Scheduled principal and interest payments are guaranteed by:
(1) MBIA (Municipal Bond Investors Assurance).
(2) AMBAC (Ambac Assurance Corporation).
(3) FGIC (Financial Guaranty Insurance Company).
(4) AGM (Assured Guaranty Municipal Corporation).
(5) BIGI (Bond Investors Guaranty Insurance).
(6) Connie Lee Inc.
(7) FHA (Federal Housing Authority).
(8) CapMAC (Capital Markets Assurance Corporation).
(9) American Capital Access Financial Guaranty Corporation.
(10) XL Capital Assurance Inc.
(11) CIFG (CDC IXIS Financial Guaranty).
(12) Assured Guaranty Corporation.
(13) Berkshire Hathaway Assurance Corporation.
(14) National Public Finance Guarantee Corporation.
The insurance does not guarantee the market value of the municipal bonds.
LOC—Scheduled principal and interest payments are guaranteed by bank letter of credit.
57
California Intermediate-Term Tax-Exempt Fund
| |
| Statement of Operations | |
| |
| | Six Months Ended |
| | May 31, 2011 |
| | ($000) |
| Investment Income | |
| Income | |
| Interest | 103,342 |
| Total Income | 103,342 |
| Expenses | |
| The Vanguard Group—Note B | |
| Investment Advisory Services | 294 |
| Management and Administrative—Investor Shares | 847 |
| Management and Administrative—Admiral Shares | 1,566 |
| Marketing and Distribution—Investor Shares | 216 |
| Marketing and Distribution—Admiral Shares | 534 |
| Custodian Fees | 37 |
| Shareholders’ Reports—Investor Shares | 19 |
| Shareholders’ Reports—Admiral Shares | 8 |
| Trustees’ Fees and Expenses | 3 |
| Total Expenses | 3,524 |
| Net Investment Income | 99,818 |
| Realized Net Gain (Loss) | |
| Investment Securities Sold | (3,511) |
| Futures Contracts | (6,454) |
| Realized Net Gain (Loss) | (9,965) |
| Change in Unrealized Appreciation (Depreciation) | |
| Investment Securities | 14,267 |
| Futures Contracts | (1,457) |
| Change in Unrealized Appreciation (Depreciation) | 12,810 |
| Net Increase (Decrease) in Net Assets Resulting from Operations | 102,663 |
See accompanying Notes, which are an integral part of the Financial Statements.
58
California Intermediate-Term Tax-Exempt Fund
| | |
| Statement of Changes in Net Assets | | |
| |
| | Six Months Ended | Year Ended |
| | May 31, | November 30, |
| | 2011 | 2010 |
| | ($000) | ($000) |
| Increase (Decrease) in Net Assets | | |
| Operations | | |
| Net Investment Income | 99,818 | 203,317 |
| Realized Net Gain (Loss) | (9,965) | (608) |
| Change in Unrealized Appreciation (Depreciation) | 12,810 | 31,695 |
| Net Increase (Decrease) in Net Assets Resulting from Operations | 102,663 | 234,404 |
| Distributions | | |
| Net Investment Income | | |
| Investor Shares | (22,348) | (54,632) |
| Admiral Shares | (77,470) | (148,685) |
| Realized Capital Gain | | |
| Investor Shares | — | — |
| Admiral Shares | — | — |
| Total Distributions | (99,818) | (203,317) |
| Capital Share Transactions | | |
| Investor Shares | (149,798) | (133,336) |
| Admiral Shares | (112,027) | 514,047 |
| Net Increase (Decrease) from Capital Share Transactions | (261,825) | 380,711 |
| Total Increase (Decrease) | (258,980) | 411,798 |
| Net Assets | | |
| Beginning of Period | 5,472,955 | 5,061,157 |
| End of Period | 5,213,975 | 5,472,955 |
See accompanying Notes, which are an integral part of the Financial Statements.
59
California Intermediate-Term Tax-Exempt Fund
Financial Highlights
| | | | | | |
| Investor Shares | | | | | | |
| Six Months | | | | | |
| | Ended | | | | | |
| For a Share Outstanding | May 31, | | | Year Ended November 30, |
| Throughout Each Period | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 |
| Net Asset Value, Beginning of Period | $10.93 | $10.86 | $10.21 | $10.92 | $11.09 | $10.95 |
| Investment Operations | | | | | | |
| Net Investment Income | .206 | .408 | .412 | .425 | .435 | .438 |
| Net Realized and Unrealized Gain (Loss) | | | | | | |
| on Investments | .020 | .070 | .650 | (.710) | (.170) | .140 |
| Total from Investment Operations | .226 | .478 | 1.062 | (.285) | .265 | .578 |
| Distributions | | | | | | |
| Dividends from Net Investment Income | (.206) | (.408) | (.412) | (.425) | (.435) | (.438) |
| Distributions from Realized Capital Gains | — | — | — | — | — | — |
| Total Distributions | (.206) | (.408) | (.412) | (.425) | (.435) | (.438) |
| Net Asset Value, End of Period | $10.95 | $10.93 | $10.86 | $10.21 | $10.92 | $11.09 |
| |
| Total Return1 | 2.12% | 4.43% | 10.56% | -2.71% | 2.46% | 5.40% |
| |
| Ratios/Supplemental Data | | | | | | |
| Net Assets, End of Period (Millions) | $1,163 | $1,314 | $1,435 | $1,320 | $1,243 | $1,068 |
| Ratio of Total Expenses to | | | | | | |
| Average Net Assets | 0.20% | 0.20% | 0.20% | 0.15% | 0.15% | 0.16% |
| Ratio of Net Investment Income to | | | | | | |
| Average Net Assets | 3.85% | 3.70% | 3.88% | 3.96% | 3.97% | 4.00% |
| Portfolio Turnover Rate | 5% | 10% | 17% | 25% | 11% | 7% |
The expense ratio, net income ratio, and turnover rate for the current period have been annualized.
1 Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees.
See accompanying Notes, which are an integral part of the Financial Statements.
60
California Intermediate-Term Tax-Exempt Fund
Financial Highlights
| | | | | | |
| Admiral Shares | | | | | | |
| Six Months | | | | | |
| | Ended | | | | | |
| For a Share Outstanding | May 31, | | | Year Ended November 30, |
| Throughout Each Period | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 |
| Net Asset Value, Beginning of Period | $10.93 | $10.86 | $10.21 | $10.92 | $11.09 | $10.95 |
| Investment Operations | | | | | | |
| Net Investment Income | .211 | .417 | .421 | .432 | .443 | .446 |
| Net Realized and Unrealized Gain (Loss) | | | | | | |
| on Investments | .020 | .070 | .650 | (.710) | (.170) | .140 |
| Total from Investment Operations | .231 | .487 | 1.071 | (.278) | .273 | .586 |
| Distributions | | | | | | |
| Dividends from Net Investment Income | (.211) | (.417) | (.421) | (.432) | (.443) | (.446) |
| Distributions from Realized Capital Gains | — | — | — | — | — | — |
| Total Distributions | (.211) | (.417) | (.421) | (.432) | (.443) | (.446) |
| Net Asset Value, End of Period | $10.95 | $10.93 | $10.86 | $10.21 | $10.92 | $11.09 |
| |
| Total Return | 2.16% | 4.52% | 10.65% | -2.64% | 2.53% | 5.48% |
| |
| Ratios/Supplemental Data | | | | | | |
| Net Assets, End of Period (Millions) | $4,051 | $4,159 | $3,626 | $3,210 | $3,116 | $2,388 |
| Ratio of Total Expenses to | | | | | | |
| Average Net Assets | 0.12% | 0.12% | 0.12% | 0.08% | 0.08% | 0.09% |
| Ratio of Net Investment Income to | | | | | | |
| Average Net Assets | 3.93% | 3.78% | 3.96% | 4.03% | 4.04% | 4.07% |
| Portfolio Turnover Rate | 5% | 10% | 17% | 25% | 11% | 7% |
| The expense ratio, net income ratio, and turnover rate for the current period have been annualized. | | | |
See accompanying Notes, which are an integral part of the Financial Statements.
61
California Intermediate-Term Tax-Exempt Fund
Notes to Financial Statements
Vanguard California Intermediate-Term Tax-Exempt Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund invests in debt instruments of municipal issuers whose ability to meet their obligations may be affected by economic and political developments in the state. The fund offers two classes of shares: Investor Shares and Admiral Shares. Investor Shares are available to any investor who meets the fund’s minimum purchase requirements. Admiral Shares are designed for investors who meet certain administrative, service, and account-size criteria.
A. The following significant accounting policies conform to generally accepted accounting principles for U.S. mutual funds. The fund consistently follows such policies in preparing its financial statements.
1. Security Valuation: Bonds, and temporary cash investments acquired over 60 days to maturity, are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services. Other temporary cash investments are valued at amortized cost, which approximates market value. Securities for which market quotations are not readily available, or whose values have been affected by events occurring before the fund’s pricing time but after the close of the securities’ primary markets, are valued by methods deemed by the board of trustees to represent fair value.
2. Futures Contracts: The fund uses futures contracts to invest in fixed income asset classes with greater efficiency and lower cost than is possible through direct investment, to add value when these instruments are attractively priced, or to adjust sensitivity to changes in interest rates. The primary risks associated with the use of futures contracts are imperfect correlation between changes in market values of bonds held by the fund and the prices of futures contracts, and the possibility of an illiquid market.
Futures contracts are valued based upon their quoted daily settlement prices. The aggregate principal amounts of the contracts are not recorded in the Statement of Net Assets. Fluctuations in the value of the contracts are recorded in the Statement of Net Assets as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until the contracts are closed, when they are recorded as realized futures gains (losses).
3. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute all of its income. Management has analyzed the fund’s tax positions taken for all open federal income tax years (November 30, 2007–2010), and for the period ended May 31, 2011, and has concluded that no provision for federal income tax is required in the fund’s financial statements.
4. Distributions: Distributions from net investment income are declared daily and paid on the first business day of the following month. Annual distributions from realized capital gains, if any, are recorded on the ex-dividend date.
5. Other: Interest income is accrued daily. Premiums and discounts on debt securities purchased are amortized and accreted, respectively, to interest income over the lives of the respective securities. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.
62
California Intermediate-Term Tax-Exempt Fund
Each class of shares has equal rights as to assets and earnings, except that each class separately bears certain class-specific expenses related to maintenance of shareholder accounts (included in Management and Administrative expenses) and shareholder reporting. Marketing and distribution expenses are allocated to each class of shares based on a method approved by the board of trustees. Income, other non-class-specific expenses, and gains and losses on investments are allocated to each class of shares based on its relative net assets.
B. The Vanguard Group furnishes at cost investment advisory, corporate management, administrative, marketing, and distribution services. The costs of such services are allocated to the fund under methods approved by the board of trustees. The fund has committed to provide up to 0.40% of its net assets in capital contributions to Vanguard. At May 31, 2011, the fund had contributed capital of $803,000 to Vanguard (included in Other Assets), representing 0.02% of the fund’s net assets and 0.32% of Vanguard’s capitalization. The fund’s trustees and officers are also directors and officers of Vanguard.
C. Various inputs may be used to determine the value of the fund’s investments. These inputs are summarized in three broad levels for financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.
Level 1—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments).
The following table summarizes the fund’s investments as of May 31, 2011, based on the inputs used to value them:
| | | |
| | Level 1 | Level 2 | Level 3 |
| Investments | ($000) | ($000) | ($000) |
| Tax-Exempt Municipal Bonds | — | 5,152,436 | — |
| Futures Contracts—Liabilities1 | (266) | — | — |
| Total | (266) | 5,152,436 | — |
| 1 Represents variation margin on the last day of the reporting period. | | | |
D. At May 31, 2011, the aggregate settlement value of open futures contracts and the related unrealized appreciation (depreciation) were:
| | | | |
| | | | | ($000) |
| | | | Aggregate | |
| | | Number of | Settlement | Unrealized |
| | | Long (Short) | Value | Appreciation |
| Futures Contracts | Expiration | Contracts | Long (Short) | (Depreciation) |
| 2-Year U.S. Treasury Note | September 2011 | (596) | (130,636) | (160) |
| 10-Year U.S. Treasury Note | September 2011 | (1,005) | (123,222) | (911) |
| 5-Year U.S. Treasury Note | September 2011 | (604) | (71,961) | (399) |
Unrealized appreciation (depreciation) on open futures contracts is required to be treated as realized gain (loss) for tax purposes.
63
California Intermediate-Term Tax-Exempt Fund
E. Capital gain distributions are determined on a tax basis and may differ from realized capital gains for financial reporting purposes. Differences may be permanent or temporary. Permanent differences are reclassified among capital accounts in the financial statements to reflect their tax character. Temporary differences arise when gains or losses are recognized in different periods for financial statement and tax purposes; these differences will reverse at some time in the future.
The fund’s tax-basis capital gains and losses are determined only at the end of each fiscal year. For tax purposes, at November 30, 2010, the fund had available capital loss carryforwards totaling $95,137,000 to offset future net capital gains of $4,253,000 through November 30, 2012, $2,524,000 through November 30, 2013, $6,523,000 through November 30, 2014, $3,936,000 through November 30, 2015, $38,505,000 through November 30, 2016, $38,406,000 through November 30, 2017, and $990,000 through November 30, 2018. The fund will use these capital losses to offset net taxable capital gains, if any, realized during the year ending November 30, 2011; should the fund realize net capital losses for the year, the losses will be added to the loss carryforward balance above.
The fund had realized losses totaling $3,023,000 through November 30, 2010, which are deferred for tax purposes and reduce the amount of tax-basis unrealized appreciation on investment securities.
At May 31, 2011, the cost of investment securities for tax purposes was $5,060,719,000. Net unrealized appreciation of investment securities for tax purposes was $91,717,000, consisting of unrealized gains of $159,647,000 on securities that had risen in value since their purchase and $67,930,000 in unrealized losses on securities that had fallen in value since their purchase.
F. During the six months ended May 31, 2011, the fund purchased $128,993,000 of investment securities and sold $431,910,000 of investment securities, other than temporary cash investments.
G. Capital share transactions for each class of shares were:
| | | | |
| | Six Months Ended | | Year Ended |
| | | May 31, 2011 | November 30, 2010 |
| | Amount | Shares | Amount | Shares |
| | ($000) | (000) | ($000) | (000) |
| Investor Shares | | | | |
| Issued | 172,042 | 16,027 | 502,321 | 45,661 |
| Issued in Lieu of Cash Distributions | 20,058 | 1,866 | 48,290 | 4,382 |
| Redeemed | (341,898) | (31,945) | (683,947) | (62,030) |
| Net Increase (Decrease)—Investor Shares | (149,798) | (14,052) | (133,336) | (11,987) |
| Admiral Shares | | | | |
| Issued | 509,548 | 47,442 | 1,327,526 | 120,454 |
| Issued in Lieu of Cash Distributions | 59,492 | 5,533 | 114,894 | 10,422 |
| Redeemed | (681,067) | (63,642) | (928,373) | (84,379) |
| Net Increase (Decrease)—Admiral Shares | (112,027) | (10,667) | 514,047 | 46,497 |
H. In preparing the financial statements as of May 31, 2011, management considered the impact of subsequent events for potential recognition or disclosure in these financial statements.
64
California Long-Term Tax-Exempt Fund
Fund Profile
As of May 31, 2011
| | |
| Share-Class Characteristics | |
| | Investor | Admiral |
| | Shares | Shares |
| Ticker Symbol | VCITX | VCLAX |
| Expense Ratio1 | 0.20% | 0.12% |
| 30-Day SEC Yield | 3.80% | 3.88% |
| | | |
| Financial Attributes | | | |
| | | Barclays | Barclays |
| | | 10 Year | Municipal |
| | | Municipal | Bond |
| | Fund | Index | Index |
| Number of Bonds | 441 | 8,667 | 45,699 |
| Yield to Maturity | | | |
| (before expenses) | 4.0% | 3.3% | 3.5% |
| Average Coupon | 4.5% | 4.9% | 4.9% |
| Average Duration | 6.8 years | 7.1 years | 8.4 years |
| Average Effective | | | |
| Maturity | 9.8 years | 9.9 years | 13.3 years |
| Short-Term | | | |
| Reserves | 6.1% | — | — |
| | |
| Volatility Measures | | |
| | Barclays | Barclays |
| | 10 Year | Municipal |
| | Municipal | Bond |
| | Index | Index |
| R-Squared | 0.79 | 0.94 |
| Beta | 1.02 | 1.17 |
These measures show the degree and timing of the fund’s fluctuations compared with the indexes over 36 months.
| |
| Distribution by Maturity (% of portfolio) | |
| Under 1 Year | 11.4% |
| 1 - 3 Years | 9.9 |
| 3 - 5 Years | 9.7 |
| 5 - 10 Years | 38.8 |
| 10 - 20 Years | 11.3 |
| 20 - 30 Years | 15.6 |
| Over 30 Years | 3.3 |
| |
| Distribution by Credit Quality (% of portfolio) |
| AAA | 7.1% |
| AA | 40.7 |
| A | 38.6 |
| BBB | 12.0 |
| Not Rated | 1.6 |
For information about these ratings, see the Glossary entry for Credit Quality.
Investment Focus
1 The expense ratios shown are from the prospectus dated March 29, 2011, and represent estimated costs for the current fiscal year. For the six months ended May 31, 2011, the annualized expense ratios were 0.20% for Investor Shares and 0.12% for Admiral Shares.
65
California Long-Term Tax-Exempt Fund
Performance Summary
All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the fund. (Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end, visit our website at vanguard.com/performance.) Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s shares, when sold, could be worth more or less than their original cost. The returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
| | | | |
| Fiscal-Year Total Returns (%): November 30, 2000, Through May 31, 2011 | |
| | | | | Barclays |
| | | | | 10 Year |
| | | | | Municipal |
| | | | Investor Shares | Index |
| Fiscal Year | Income Returns | Capital Returns | Total Returns | Total Returns |
| 2001 | 5.12% | 2.63% | 7.75% | 8.22% |
| 2002 | 4.85 | 0.51 | 5.36 | 6.67 |
| 2003 | 4.73 | 2.22 | 6.95 | 6.88 |
| 2004 | 4.65 | -1.33 | 3.32 | 4.03 |
| 2005 | 4.54 | -0.32 | 4.22 | 3.01 |
| 2006 | 4.71 | 1.99 | 6.70 | 6.17 |
| 2007 | 4.52 | -3.37 | 1.15 | 3.51 |
| 2008 | 4.13 | -11.08 | -6.95 | -0.42 |
| 2009 | 4.96 | 7.75 | 12.71 | 12.67 |
| 2010 | 4.36 | 0.27 | 4.63 | 5.51 |
| 2011 | 2.24 | -0.64 | 1.60 | 2.73 |
| Note: For 2011, performance data reflect the six months ended May 31, 2011. | | |
Average Annual Total Returns: Periods Ended March 31, 2011
This table presents returns through the latest calendar quarter—rather than through the end of the fiscal period.
Securities and Exchange Commission rules require that we provide this information.
| | | | | | |
| | | | | | | Ten Years |
| | Inception Date | One Year | Five Years | Income | Capital | Total |
| Investor Shares | 4/7/1986 | 0.34% | 2.69% | 4.61% | -0.81% | 3.80% |
| Admiral Shares | 11/12/2001 | 0.42 | 2.77 | 4.641 | -1.131 | 3.511 |
| 1 Return since inception. | | | | | | |
See Financial Highlights for dividend and capital gains information.
66
California Long-Term Tax-Exempt Fund
Financial Statements (unaudited)
Statement of Net Assets
As of May 31, 2011
The fund reports a complete list of its holdings in regulatory filings four times in each fiscal year, at the quarter-ends. For the second and fourth fiscal quarters, the lists appear in the fund’s semiannual and annual reports to shareholders. For the first and third fiscal quarters, the fund files the lists with the Securities and Exchange Commission on Form N-Q. Shareholders can look up the fund’s Forms N-Q on the SEC’s website at sec.gov. Forms N-Q may also be reviewed and copied at the SEC’s Public Reference Room (see the back cover of this report for further information).
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value |
| | Coupon | Date | ($000) | ($000) |
| Tax-Exempt Municipal Bonds (98.9%) | | | | |
| California (98.0%) | | | | |
| ABAG Finance Authority for Nonprofit Corps. | | | | |
| California Revenue (899 Charleston Project) | | | | |
| VRDO | 0.180% | 6/1/11 LOC | 3,125 | 3,125 |
| ABAG Finance Authority for Nonprofit Corps. | | | | |
| California Revenue (School of the Mechanical | | | | |
| Arts-Lick-Wilmerding High School) | 5.250% | 10/1/26 | 1,000 | 1,003 |
| ABAG Finance Authority for Nonprofit Corps. | | | | |
| California Revenue (School of the Mechanical | | | | |
| Arts-Lick-Wilmerding High School) | 5.300% | 10/1/32 | 3,180 | 3,009 |
| Alameda CA Corridor Transportation | | | | |
| Authority Revenue | 5.125% | 10/1/17 (14) | 5,000 | 5,035 |
| Alameda CA Corridor Transportation | | | | |
| Authority Revenue | 5.125% | 10/1/18 (14) | 2,000 | 2,014 |
| Alameda CA Corridor Transportation | | | | |
| Authority Revenue | 0.000% | 10/1/30 (2) | 30,375 | 7,767 |
| Alameda County CA Unified School District GO | 0.000% | 8/1/24 (4) | 3,510 | 1,608 |
| Alameda County CA Unified School District GO | 0.000% | 8/1/29 (4) | 5,000 | 1,545 |
| Anaheim CA Public Financing Authority Revenue | | | | |
| (Distribution System) | 5.000% | 10/1/21 (14) | 3,390 | 3,598 |
| Bay Area CA Infrastructure Financing | | | | |
| Authority Revenue | 5.000% | 8/1/17 (14) | 4,000 | 4,153 |
| Bay Area Toll Authority California Toll Bridge | | | | |
| Revenue (San Francisco Bay Area) | 5.000% | 4/1/39 | 15,050 | 15,092 |
| Bay Area Toll Authority California Toll Bridge | | | | |
| Revenue (San Francisco Bay Area) | 5.000% | 10/1/42 | 5,000 | 4,891 |
| Bay Area Toll Authority California Toll Bridge | | | | |
| Revenue (San Francisco Bay Area) | 5.625% | 4/1/44 | 10,000 | 10,486 |
| Cabrillo CA Community College District Revenue | 0.000% | 5/1/26 (2) | 9,000 | 3,920 |
| California County CA Tobacco | | | | |
| Securitization Agency | 0.000% | 6/1/28 | 7,500 | 6,030 |
| California County CA Tobacco | | | | |
| Securitization Agency | 0.000% | 6/1/36 | 7,500 | 5,349 |
| California Department of Water Resources | | | | |
| Power Supply Revenue | 6.000% | 5/1/12 (Prere.) | 13,000 | 13,812 |
| California Department of Water Resources | | | | |
| Power Supply Revenue | 5.000% | 5/1/16 | 7,500 | 8,761 |
| California Department of Water Resources | | | | |
| Power Supply Revenue | 5.000% | 5/1/18 | 8,000 | 9,419 |
67
California Long-Term Tax-Exempt Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value |
| | Coupon | Date | ($000) | ($000) |
| California Department of Water Resources | | | | |
| Power Supply Revenue | 5.000% | 5/1/20 | 10,000 | 11,783 |
| California Department of Water Resources | | | | |
| Power Supply Revenue | 5.000% | 5/1/21 | 5,000 | 5,776 |
| California Department of Water Resources | | | | |
| Power Supply Revenue | 5.000% | 5/1/22 | 30,000 | 33,492 |
| California Department of Water Resources | | | | |
| Power Supply Revenue VRDO | 0.150% | 6/7/11 LOC | 26,600 | 26,600 |
| California Department of Water Resources | | | | |
| Power Supply Revenue VRDO | 0.160% | 6/7/11 | 1,000 | 1,000 |
| California Department of Water Resources | | | | |
| Water System Revenue (Central Valley Project) | 5.000% | 12/1/25 | 8,810 | 9,707 |
| California Economic Recovery Bonds GO | 5.000% | 7/1/17 (14) | 25,000 | 25,075 |
| California Economic Recovery Bonds GO | 5.000% | 7/1/18 | 15,850 | 18,469 |
| California Economic Recovery Bonds GO | 5.000% | 7/1/19 | 9,290 | 10,843 |
| California Economic Recovery Bonds GO | 5.000% | 7/1/20 | 19,855 | 22,778 |
| California Economic Recovery Bonds GO | 5.250% | 7/1/21 | 16,985 | 19,526 |
| California Economic Recovery Bonds GO | 5.000% | 7/1/22 | 5,000 | 5,373 |
| California Educational Facilities Authority | | | | |
| Revenue (California Institute of Technology) | 5.000% | 10/1/39 | 6,500 | 6,672 |
| California Educational Facilities Authority | | | | |
| Revenue (California Institute of Technology) | 5.000% | 11/1/39 | 3,000 | 3,096 |
| California Educational Facilities Authority | | | | |
| Revenue (College of Arts & Crafts) | 6.875% | 6/1/19 | 1,615 | 1,770 |
| California Educational Facilities Authority | | | | |
| Revenue (College of Arts & Crafts) | 5.750% | 6/1/25 | 2,000 | 1,902 |
| California Educational Facilities Authority | | | | |
| Revenue (Pomona College) | 0.000% | 7/1/34 | 3,155 | 772 |
| California Educational Facilities Authority | | | | |
| Revenue (Pomona College) | 0.000% | 7/1/35 | 3,155 | 706 |
| 1 California Educational Facilities Authority | | | | |
| Revenue (Pomona College) | 0.000% | 7/1/36 | 3,155 | 659 |
| 1 California Educational Facilities Authority | | | | |
| Revenue (Pomona College) | 0.000% | 7/1/37 | 3,155 | 617 |
| 1 California Educational Facilities Authority | | | | |
| Revenue (Pomona College) | 0.000% | 7/1/39 | 2,805 | 480 |
| California Educational Facilities Authority | | | | |
| Revenue (Pomona College) | 0.000% | 7/1/40 | 1,580 | 253 |
| 1 California Educational Facilities Authority Revenue | | | | |
| (Stanford University) | 5.000% | 3/15/26 | 5,330 | 6,260 |
| California Educational Facilities Authority Revenue | | | | |
| (University of San Francisco) | 6.125% | 10/1/36 | 1,250 | 1,312 |
| California Educational Facilities Authority Revenue | | | | |
| (University of San Francisco) VRDO | 0.150% | 6/7/11 LOC | 4,300 | 4,300 |
| California Educational Facilities Authority Revenue | | | | |
| (University of San Francisco) VRDO | 0.150% | 6/7/11 LOC | 3,900 | 3,900 |
| California Educational Facilities Authority Revenue | | | | |
| (University of Southern California) | 4.750% | 10/1/37 | 1,650 | 1,633 |
| California Educational Facilities Authority Revenue | | | | |
| (University of Southern California) | 5.000% | 10/1/38 | 5,000 | 5,132 |
| California Educational Facilities Authority Revenue | | | | |
| (University of Southern California) | 5.250% | 10/1/38 | 3,250 | 3,401 |
| 2 California Educational Facilities Authority Revenue | | | | |
| (University of Southern California) TOB VRDO | 0.100% | 6/1/11 | 3,887 | 3,887 |
68
California Long-Term Tax-Exempt Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value |
| | Coupon | Date | ($000) | ($000) |
| California Educational Facilities Authority Revenue | | | | |
| (University of the Pacific) | 5.000% | 11/1/25 | 2,000 | 2,035 |
| California GO | 6.250% | 9/1/12 (3) | 6,070 | 6,260 |
| California GO | 7.000% | 11/1/13 (14) | 65 | 66 |
| California GO | 5.000% | 10/1/14 | 1,900 | 2,116 |
| California GO | 5.250% | 10/1/14 (14) | 1,955 | 1,979 |
| California GO | 5.000% | 11/1/14 | 32,840 | 36,642 |
| California GO | 5.000% | 11/1/15 | 1,520 | 1,727 |
| California GO | 5.000% | 3/1/19 | 1,250 | 1,425 |
| California GO | 6.000% | 4/1/19 | 1,690 | 2,041 |
| California GO | 6.000% | 8/1/19 (3) | 210 | 212 |
| California GO | 5.000% | 4/1/20 | 1,460 | 1,633 |
| California GO | 5.000% | 11/1/22 | 1,000 | 1,067 |
| California GO | 5.000% | 3/1/25 | 7,000 | 7,281 |
| California GO | 5.125% | 2/1/26 | 15,325 | 15,635 |
| California GO | 5.000% | 6/1/26 (14) | 20,000 | 20,478 |
| California GO | 5.000% | 9/1/28 | 10,650 | 10,801 |
| California GO | 5.000% | 10/1/29 | 1,400 | 1,419 |
| California GO | 5.250% | 10/1/29 | 4,700 | 4,850 |
| California GO | 4.500% | 8/1/30 | 5,000 | 4,578 |
| California GO | 5.750% | 4/1/31 | 15,000 | 16,072 |
| California GO | 5.000% | 6/1/32 | 35,000 | 34,865 |
| California GO | 6.000% | 3/1/33 | 7,000 | 7,615 |
| California GO | 6.500% | 4/1/33 | 33,000 | 36,830 |
| California GO | 5.000% | 6/1/34 | 32,500 | 31,804 |
| California GO | 4.500% | 3/1/35 (2) | 2,320 | 2,057 |
| California GO | 6.000% | 11/1/35 | 10,000 | 10,765 |
| California GO | 5.250% | 3/1/38 | 13,565 | 13,525 |
| California GO | 6.000% | 4/1/38 | 21,190 | 22,576 |
| California GO | 5.250% | 8/1/38 | 10,000 | 9,970 |
| California GO | 6.000% | 11/1/39 | 2,700 | 2,887 |
| California GO | 5.500% | 3/1/40 | 9,000 | 9,232 |
| California GO | 5.250% | 11/1/40 | 11,000 | 10,967 |
| 2 California GO TOB VRDO | 0.500% | 6/1/11 LOC | 8,345 | 8,345 |
| California Health Facilities Financing Authority | | | | |
| Revenue (Adventist Health System/West) | 5.000% | 3/1/33 | 7,950 | 7,307 |
| California Health Facilities Financing Authority | | | | |
| Revenue (Adventist Health System/West) VRDO | 0.100% | 6/1/11 LOC | 1,005 | 1,005 |
| California Health Facilities Financing Authority | | | | |
| Revenue (Casa Colina) | 6.125% | 4/1/32 | 10,000 | 9,958 |
| California Health Facilities Financing Authority | | | | |
| Revenue (Catholic Healthcare West) | 4.750% | 7/1/19 (14) | 765 | 766 |
| California Health Facilities Financing Authority | | | | |
| Revenue (Catholic Healthcare West) | 5.625% | 7/1/25 | 5,000 | 5,211 |
| California Health Facilities Financing Authority | | | | |
| Revenue (Catholic Healthcare West) | 6.000% | 7/1/39 | 5,000 | 5,109 |
| California Health Facilities Financing Authority | | | | |
| Revenue (Catholic Healthcare West) PUT | 5.000% | 7/1/14 | 10,000 | 11,079 |
| California Health Facilities Financing Authority | | | | |
| Revenue (Cedars-Sinai Medical Center) | 5.000% | 11/15/27 | 7,000 | 6,756 |
| California Health Facilities Financing Authority | | | | |
| Revenue (Cedars-Sinai Medical Center) | 5.000% | 8/15/39 | 7,000 | 6,352 |
| California Health Facilities Financing Authority | | | | |
| Revenue (Children’s Hospital of Orange County) | 6.500% | 11/1/38 | 3,000 | 3,120 |
69
California Long-Term Tax-Exempt Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value |
| | Coupon | Date | ($000) | ($000) |
| California Health Facilities Financing Authority | | | | |
| Revenue (Providence Health & Services) | 6.500% | 10/1/33 | 2,000 | 2,230 |
| California Health Facilities Financing Authority | | | | |
| Revenue (Providence Health & Services) | 5.500% | 10/1/39 | 5,500 | 5,584 |
| California Health Facilities Financing Authority | | | | |
| Revenue (St. Joseph Health System) | 5.750% | 7/1/39 | 5,000 | 5,058 |
| California Health Facilities Financing Authority | | | | |
| Revenue (Stanford Hospital) PUT | 3.450% | 6/15/11 | 5,000 | 5,006 |
| California Health Facilities Financing Authority | | | | |
| Revenue (Sutter Health) | 5.250% | 8/15/22 | 5,000 | 5,318 |
| California Health Facilities Financing Authority | | | | |
| Revenue (Sutter Health) | 5.250% | 11/15/46 | 20,500 | 19,184 |
| California Infrastructure & Economic Development | | | | |
| Bank Revenue (Academy of Sciences) VRDO | 0.100% | 6/1/11 LOC | 2,800 | 2,800 |
| California Infrastructure & Economic Development | | | | |
| Bank Revenue (Bay Area Toll Bridges | | | | |
| Seismic Retrofit) | 5.000% | 1/1/28 (Prere.) | 6,500 | 7,791 |
| California Infrastructure & Economic Development | | | | |
| Bank Revenue (J. David Gladstone | | | | |
| Institutes Project) | 5.500% | 10/1/18 | 3,905 | 3,971 |
| California Infrastructure & Economic Development | | | | |
| Bank Revenue (J. David Gladstone | | | | |
| Institutes Project) | 5.500% | 10/1/20 | 1,500 | 1,523 |
| California Infrastructure & Economic Development | | | | |
| Bank Revenue (J. David Gladstone | | | | |
| Institutes Project) | 5.250% | 10/1/34 | 20,040 | 18,399 |
| California Infrastructure & Economic Development | | | | |
| Bank Revenue (Kaiser Hospital Assistance I-LLC) | 5.500% | 8/1/31 | 7,610 | 7,582 |
| California Infrastructure & Economic Development | | | | |
| Bank Revenue (Kaiser Hospital Assistance I-LLC) | 5.550% | 8/1/31 | 5,500 | 5,502 |
| California Infrastructure & Economic Development | | | | |
| Bank Revenue (Los Angeles County Museum | | | | |
| of Natural History Foundation) VRDO | 0.100% | 6/1/11 LOC | 1,600 | 1,600 |
| California Infrastructure & Economic Development | | | | |
| Bank Revenue (Orange County Performing | | | | |
| Arts Center) VRDO | 0.140% | 6/1/11 LOC | 4,300 | 4,300 |
| California Infrastructure & Economic Development | | | | |
| Bank Revenue (Science Center Phase II Project) | 5.000% | 5/1/31 (14) | 7,635 | 6,471 |
| California Infrastructure & Economic Development | | | | |
| Bank Revenue (YMCA of Metropolitan | | | | |
| Los Angeles Project) | 5.250% | 2/1/26 (2) | 4,750 | 4,771 |
| California Municipal Finance Authority | | | | |
| (Community Hospitals of Central California | | | | |
| Obligated Group) COP | 5.500% | 2/1/39 | 11,000 | 9,321 |
| California Municipal Finance Authority Revenue | | | | |
| (University of La Verne) | 5.250% | 6/1/20 | 2,420 | 2,437 |
| California Public Works Board Lease Revenue | | | | |
| (Community Colleges) | 5.000% | 3/1/27 (14) | 2,970 | 2,888 |
| California Public Works Board Lease Revenue | | | | |
| (Department of Corrections) | 5.000% | 1/1/15 (2) | 3,900 | 4,221 |
| California Public Works Board Lease Revenue | | | | |
| (Department of Corrections) | 5.000% | 1/1/17 | 6,000 | 6,465 |
| California Public Works Board Lease Revenue | | | | |
| (Department of Corrections) | 6.500% | 9/1/17 (2) | 25,000 | 27,837 |
70
California Long-Term Tax-Exempt Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value |
| | Coupon | Date | ($000) | ($000) |
| California Public Works Board Lease Revenue | | | | |
| (Department of Corrections) | 5.000% | 12/1/17 (14) | 13,835 | 14,569 |
| California Public Works Board Lease Revenue | | | | |
| (Department of Corrections) | 5.000% | 12/1/19 (14) | 15,230 | 15,711 |
| California Public Works Board Lease Revenue | | | | |
| (Department of General Services) | 6.000% | 4/1/25 | 6,000 | 6,396 |
| California Public Works Board Lease Revenue | | | | |
| (Department of General Services) | 6.250% | 4/1/34 | 6,975 | 7,281 |
| California Public Works Board Lease Revenue | | | | |
| (Office of Emergency Services) | 5.000% | 3/1/27 (14) | 8,950 | 8,702 |
| California Public Works Board Lease Revenue | | | | |
| (Regents of The University of California) | 5.250% | 11/1/27 (14) | 9,045 | 9,378 |
| California Public Works Board Lease Revenue | | | | |
| (Regents of The University of California) | 5.000% | 5/1/30 | 17,000 | 17,065 |
| California Public Works Board Lease Revenue | | | | |
| (Various Capital Projects) | 5.000% | 11/1/17 | 5,000 | 5,469 |
| California Public Works Board Lease Revenue | | | | |
| (Various Capital Projects) | 6.250% | 11/1/24 | 5,000 | 5,506 |
| California State University Revenue Systemwide | 5.250% | 11/1/19 (4) | 5,000 | 5,500 |
| California State University Revenue Systemwide | 5.250% | 11/1/20 (4) | 4,745 | 5,210 |
| California State University Revenue Systemwide | 5.000% | 11/1/21 (2) | 17,215 | 17,906 |
| California State University Revenue Systemwide | 5.750% | 11/1/27 | 4,500 | 4,788 |
| California State University Revenue Systemwide | 5.250% | 11/1/34 | 5,000 | 5,025 |
| California State University Revenue Systemwide | 5.250% | 11/1/38 | 3,280 | 3,266 |
| California Statewide Communities Development | | | | |
| Authority Health Facility Revenue (Adventist | | | | |
| Health System/West) | 5.000% | 3/1/35 | 14,500 | 13,187 |
| California Statewide Communities Development | | | | |
| Authority Health Facility Revenue (Henry Mayo | | | | |
| Newhall Memorial Hospital) | 5.000% | 10/1/18 | 5,875 | 5,880 |
| California Statewide Communities Development | | | | |
| Authority Health Facility Revenue | | | | |
| (Memorial Health Services) | 6.000% | 10/1/23 | 8,500 | 8,777 |
| California Statewide Communities Development | | | | |
| Authority Revenue (Concordia University | | | | |
| Irvine Project) VRDO | 0.150% | 6/1/11 LOC | 4,400 | 4,400 |
| California Statewide Communities Development | | | | |
| Authority Revenue (Cottage Health System | | | | |
| Obligated Group) | 5.000% | 11/1/40 | 7,000 | 6,341 |
| California Statewide Communities Development | | | | |
| Authority Revenue (Daughters of Charity | | | | |
| Health System) | 5.250% | 7/1/30 | 5,000 | 4,178 |
| California Statewide Communities Development | | | | |
| Authority Revenue (John Muir Health) | 5.000% | 8/15/34 | 7,390 | 6,746 |
| California Statewide Communities Development | | | | |
| Authority Revenue (Kaiser Permanente) | 5.500% | 11/1/32 | 16,250 | 16,088 |
| California Statewide Communities Development | | | | |
| Authority Revenue (Kaiser Permanente) | 5.250% | 3/1/45 | 10,250 | 9,348 |
| California Statewide Communities Development | | | | |
| Authority Revenue (Kaiser Permanente) VRDO | 0.170% | 6/7/11 | 9,000 | 9,000 |
| California Statewide Communities Development | | | | |
| Authority Revenue (Los Angeles Orthopaedic | | | | |
| Hospital Foundation & Orthopaedic Hospital) | 5.750% | 6/1/30 (2) | 6,680 | 6,455 |
71
California Long-Term Tax-Exempt Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value |
| | Coupon | Date | ($000) | ($000) |
| California Statewide Communities Development | | | | |
| Authority Revenue (Proposition 1A | | | | |
| Receivables Program) | 5.000% | 6/15/13 | 9,000 | 9,636 |
| California Statewide Communities Development | | | | |
| Authority Revenue (Redlands | | | | |
| Community Hospital) VRDO | 0.150% | 6/7/11 LOC | 4,500 | 4,500 |
| California Statewide Communities Development | | | | |
| Authority Revenue (Sutter Health) | 5.500% | 8/15/34 | 10,885 | 10,799 |
| California Statewide Communities Development | | | | |
| Authority Senior Living Revenue | | | | |
| (Southern California Presbyterian Homes) | 4.875% | 11/15/36 | 7,230 | 5,916 |
| California Statewide Communities Development | | | | |
| Authority Senior Living Revenue | | | | |
| (Southern California Presbyterian Homes) | 7.250% | 11/15/41 | 3,000 | 3,168 |
| California Statewide Communities Development | | | | |
| Authority Student Housing Revenue | | | | |
| (CHF-Irvine LLC - UCI East Campus | | | | |
| Apartments Phase II) | 5.000% | 5/15/38 | 18,000 | 15,167 |
| 2 Chabot-Las Positas Community College District | | | | |
| GO TOB VRDO | 0.180% | 6/7/11 | 4,500 | 4,500 |
| Clovis CA Unified School District GO | 0.000% | 8/1/13 (14) | 4,935 | 4,720 |
| Clovis CA Unified School District GO | 0.000% | 8/1/15 (14) | 2,770 | 2,451 |
| Clovis CA Unified School District GO | 0.000% | 8/1/16 (14) | 2,865 | 2,423 |
| East Bay CA Municipal Utility District | | | | |
| Water System Revenue | 5.000% | 6/1/32 (14) | 15,765 | 16,436 |
| East Bay CA Municipal Utility District | | | | |
| Water System Revenue | 5.000% | 6/1/36 | 10,000 | 10,397 |
| East Bay CA Regional Park District Revenue | 5.000% | 9/1/25 | 2,000 | 2,218 |
| East Bay CA Regional Park District Revenue | 5.000% | 9/1/27 | 4,070 | 4,461 |
| Eastern California Municipal Water District | | | | |
| Water & Sewer Revenue | 6.750% | 7/1/12 (14) | 2,340 | 2,408 |
| Escondido CA Union High School District GO | 0.000% | 11/1/20 (14) | 4,000 | 2,349 |
| Fontana CA Public Financing Authority | | | | |
| Subordinate Lien Tax Allocation Revenue | 5.000% | 10/1/29 (2) | 9,450 | 7,997 |
| Fontana CA Public Financing Authority | | | | |
| Subordinate Lien Tax Allocation Revenue | 5.000% | 10/1/32 (2) | 12,575 | 10,301 |
| Fontana CA Unified School District GO | 5.250% | 8/1/31 (4) | 6,115 | 6,173 |
| Foothill-De Anza CA Community | | | | |
| College District GO | 0.000% | 8/1/17 (14) | 3,000 | 2,436 |
| Foothill-De Anza CA Community | | | | |
| College District GO | 0.000% | 8/1/22 (14) | 3,850 | 2,257 |
| Foothill-De Anza CA Community | | | | |
| College District GO | 0.000% | 8/1/23 (14) | 3,590 | 1,942 |
| Foothill-De Anza CA Community | | | | |
| College District GO | 0.000% | 8/1/25 (14) | 2,390 | 1,109 |
| 3 Foothill-De Anza CA Community | | | | |
| College District GO | 5.000% | 8/1/40 | 10,000 | 10,223 |
| Foothill/Eastern Corridor Agency California | | | | |
| Toll Road Revenue | 0.000% | 1/15/26 | 10,000 | 9,551 |
| Foothill/Eastern Corridor Agency California | | | | |
| Toll Road Revenue | 0.000% | 1/1/29 (ETM) | 7,460 | 3,417 |
| Foothill/Eastern Corridor Agency California | | | | |
| Toll Road Revenue | 0.000% | 1/15/33 | 10,000 | 1,912 |
72
California Long-Term Tax-Exempt Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value |
| | Coupon | Date | ($000) | ($000) |
| Foothill/Eastern Corridor Agency California | | | | |
| Toll Road Revenue | 0.000% | 1/15/34 | 10,000 | 1,760 |
| Fresno CA Airport Revenue | 5.500% | 7/1/30 (4) | 1,500 | 1,500 |
| Galivan CA Joint Community College District GO | 5.500% | 8/1/28 (2) | 3,405 | 3,502 |
| Golden State Tobacco Securitization Corp. | | | | |
| California | 5.500% | 6/1/13 (Prere.) | 4,000 | 4,384 |
| Golden State Tobacco Securitization Corp. | | | | |
| California | 6.250% | 6/1/13 (Prere.) | 29,730 | 32,210 |
| Golden State Tobacco Securitization Corp. | | | | |
| California | 4.500% | 6/1/27 | 24,280 | 18,648 |
| Golden State Tobacco Securitization Corp. | | | | |
| California | 5.000% | 6/1/30 (2) | 20,000 | 18,172 |
| Golden State Tobacco Securitization Corp. | | | | |
| California | 5.000% | 6/1/33 | 8,525 | 5,734 |
| Golden State Tobacco Securitization Corp. | | | | |
| California | 5.125% | 6/1/47 | 12,785 | 7,915 |
| Golden State Tobacco Securitization Corp. | | | | |
| California | 5.750% | 6/1/47 | 8,500 | 5,833 |
| Grossmont CA Healthcare District GO | 6.125% | 7/15/40 | 2,500 | 2,667 |
| Hartnell CA Community College District GO | 5.000% | 8/1/13 (Prere.) | 1,550 | 1,701 |
| Hartnell CA Community College District GO | 5.000% | 8/1/13 (Prere.) | 1,735 | 1,904 |
| Hartnell CA Community College District GO | 5.000% | 8/1/13 (Prere.) | 2,370 | 2,602 |
| Irvine CA Unified School District Financing | | | | |
| Authority Special Tax Revenue | 5.000% | 9/1/30 (2) | 8,000 | 7,332 |
| Kern CA High School District GO | 6.400% | 8/1/14 (ETM) | 1,490 | 1,760 |
| Kern CA High School District GO | 6.400% | 8/1/15 (ETM) | 1,645 | 2,021 |
| Kern CA High School District GO | 6.400% | 8/1/16 (ETM) | 1,815 | 2,297 |
| Kern County CA GO | 5.750% | 8/1/35 (12) | 2,000 | 2,065 |
| La Mesa-Spring Valley CA School District GO | 5.375% | 8/1/12 (Prere.) | 1,570 | 1,663 |
| La Mesa-Spring Valley CA School District GO | 5.375% | 8/1/12 (Prere.) | 1,775 | 1,880 |
| La Mesa-Spring Valley CA School District GO | 5.375% | 8/1/12 (Prere.) | 2,000 | 2,118 |
| La Mesa-Spring Valley CA School District GO | 5.375% | 8/1/12 (Prere.) | 1,890 | 2,002 |
| Loma Linda CA Hospital Revenue | | | | |
| (Loma Linda University) | 5.000% | 12/1/20 | 6,155 | 5,710 |
| Loma Linda CA Hospital Revenue | | | | |
| (Loma Linda University) | 5.000% | 12/1/21 | 2,500 | 2,264 |
| Long Beach CA Finance Authority Lease Revenue | | | | |
| (Aquarium of the South Pacific) | 5.500% | 11/1/13 (2) | 3,680 | 3,723 |
| Long Beach CA Finance Authority Lease Revenue | | | | |
| (Aquarium of the South Pacific) | 5.500% | 11/1/18 (2) | 4,675 | 4,699 |
| Long Beach CA Finance Authority Lease Revenue | | | | |
| (Temple & Willow Facility) | 5.500% | 10/1/18 (14) | 5,030 | 5,068 |
| Long Beach CA Finance Authority Natural Gas | | | | |
| Purchase Revenue | 5.500% | 11/15/37 | 5,500 | 5,137 |
| Long Beach CA Finance Authority Tax Revenue | 5.500% | 8/1/26 (2) | 7,570 | 6,806 |
| Long Beach CA Finance Authority Tax Revenue | 5.500% | 8/1/31 (2) | 4,015 | 3,431 |
| Long Beach CA Harbor Revenue | 5.000% | 5/15/17 (14) | 3,655 | 4,000 |
| Los Angeles CA Community College District GO | 5.500% | 8/1/25 | 3,980 | 4,347 |
| Los Angeles CA Community College District GO | 5.000% | 8/1/32 (14) | 7,340 | 7,398 |
| Los Angeles CA Community College District GO | 6.000% | 8/1/33 | 5,000 | 5,482 |
| Los Angeles CA Community College District GO | 5.250% | 8/1/39 | 5,000 | 5,150 |
| Los Angeles CA Department of Airports | | | | |
| International Airport Revenue | 5.250% | 5/15/17 (14) | 6,800 | 7,075 |
73
California Long-Term Tax-Exempt Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value |
| | Coupon | Date | ($000) | ($000) |
| Los Angeles CA Department of Airports | | | | |
| International Airport Revenue | 5.000% | 5/15/22 | 2,000 | 2,227 |
| Los Angeles CA Department of Airports | | | | |
| International Airport Revenue | 5.250% | 5/15/27 | 5,000 | 5,369 |
| Los Angeles CA Department of Airports | | | | |
| International Airport Revenue | 5.000% | 5/15/29 | 5,000 | 5,224 |
| Los Angeles CA Department of Airports | | | | |
| International Airport Revenue | 5.000% | 5/15/30 | 3,195 | 3,187 |
| Los Angeles CA Department of Airports | | | | |
| International Airport Revenue | 5.000% | 5/15/30 | 14,590 | 15,090 |
| Los Angeles CA Department of | | | | |
| Water & Power Revenue | 5.000% | 7/1/25 | 4,070 | 4,370 |
| Los Angeles CA Department of | | | | |
| Water & Power Revenue | 5.000% | 7/1/29 (2) | 10,000 | 10,376 |
| Los Angeles CA Department of | | | | |
| Water & Power Revenue | 5.000% | 7/1/30 (2) | 16,000 | 16,490 |
| Los Angeles CA Department of | | | | |
| Water & Power Revenue | 5.000% | 7/1/32 (2) | 5,000 | 5,105 |
| Los Angeles CA Department of | | | | |
| Water & Power Revenue | 5.250% | 7/1/32 | 7,000 | 7,294 |
| Los Angeles CA Department of | | | | |
| Water & Power Revenue | 5.000% | 7/1/34 (14) | 5,995 | 6,054 |
| Los Angeles CA Department of | | | | |
| Water & Power Revenue | 5.375% | 7/1/34 | 3,000 | 3,157 |
| Los Angeles CA Department of | | | | |
| Water & Power Revenue | 5.000% | 7/1/36 (14) | 2,000 | 2,005 |
| Los Angeles CA Department of | | | | |
| Water & Power Revenue | 5.250% | 7/1/38 | 1,890 | 1,952 |
| Los Angeles CA Department of | | | | |
| Water & Power Revenue VRDO | 0.130% | 6/1/11 | 4,600 | 4,600 |
| Los Angeles CA Unified School District | | | | |
| COP VRDO | 0.160% | 6/7/11 LOC | 5,000 | 5,000 |
| Los Angeles CA Unified School District GO | 5.000% | 7/1/13 (Prere.) | 10,000 | 10,942 |
| Los Angeles CA Unified School District GO | 5.000% | 7/1/14 | 5,000 | 5,562 |
| Los Angeles CA Unified School District GO | 5.000% | 7/1/19 | 3,950 | 4,553 |
| Los Angeles CA Unified School District GO | 5.000% | 7/1/20 (3) | 6,655 | 7,306 |
| Los Angeles CA Unified School District GO | 5.000% | 7/1/21 | 3,500 | 3,895 |
| Los Angeles CA Unified School District GO | 5.000% | 7/1/24 (2) | 9,745 | 10,262 |
| Los Angeles CA Unified School District GO | 5.000% | 7/1/24 (2) | 7,500 | 7,898 |
| Los Angeles CA Unified School District GO | 5.250% | 7/1/24 | 6,275 | 6,805 |
| Los Angeles CA Unified School District GO | 5.250% | 7/1/25 | 5,000 | 5,351 |
| Los Angeles CA Unified School District GO | 5.250% | 7/1/28 | 7,000 | 7,388 |
| Los Angeles CA Unified School District GO | 5.000% | 7/1/30 (3) | 7,500 | 7,611 |
| Los Angeles CA Unified School District GO | 5.000% | 7/1/32 (4) | 8,000 | 8,096 |
| Los Angeles CA Unified School District GO | 5.000% | 1/1/34 | 5,000 | 5,013 |
| Los Angeles CA Unified School District GO | 5.250% | 7/1/34 | 10,000 | 10,210 |
| Los Angeles CA Wastewater System Revenue | 4.750% | 6/1/30 (4) | 4,645 | 4,656 |
| Los Angeles County CA Metropolitan | | | | |
| Transportation Authority Sales Tax Revenue | | | | |
| VRDO | 0.120% | 6/1/11 | 3,350 | 3,350 |
| Los Angeles County CA Public Works Financing | | | | |
| Authority Lease Revenue | 5.000% | 12/1/23 (14) | 4,000 | 3,810 |
| Los Angeles County CA Public Works Financing | | | | |
| Authority Lease Revenue | 5.000% | 12/1/24 (14) | 4,000 | 3,753 |
74
California Long-Term Tax-Exempt Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value |
| | Coupon | Date | ($000) | ($000) |
| Los Angeles County CA Public Works Financing | | | | |
| Authority Lease Revenue | 5.000% | 12/1/25 (14) | 1,265 | 1,174 |
| Los Angeles County CA Public Works Financing | | | | |
| Authority Revenue | 5.500% | 10/1/18 (4) | 2,110 | 2,401 |
| Los Angeles County CA Sanitation Districts | | | | |
| Financing Authority Capital Projects Revenue | 4.500% | 10/1/42 (2) | 15,000 | 13,279 |
| Los Angeles County CA Schools Regionalized | | | | |
| Business Services Corp. COP | 0.000% | 8/1/14 (ETM) | 1,000 | 868 |
| Los Angeles County CA Schools Regionalized | | | | |
| Business Services Corp. COP | 0.000% | 8/1/20 (2) | 2,095 | 1,154 |
| M-S-R California Energy Authority Revenue | 7.000% | 11/1/34 | 7,000 | 7,874 |
| M-S-R California Energy Authority Revenue | 6.500% | 11/1/39 | 7,000 | 7,575 |
| M-S-R California Public Power Agency Revenue | | | | |
| (San Juan Project) | 6.125% | 7/1/13 (2) | 5,080 | 5,267 |
| M-S-R California Public Power Agency Revenue | | | | |
| (San Juan Project) | 6.750% | 7/1/20 (ETM) | 13,225 | 16,380 |
| Metropolitan Water District of Southern | | | | |
| California Revenue | 5.000% | 7/1/25 | 3,410 | 3,672 |
| Metropolitan Water District of Southern | | | | |
| California Revenue | 5.000% | 7/1/28 | 4,235 | 4,454 |
| Modesto CA High School District GO | 0.000% | 8/1/15 (14) | 5,000 | 4,364 |
| Modesto CA High School District GO | 0.000% | 8/1/17 (14) | 3,000 | 2,321 |
| Modesto CA High School District GO | 0.000% | 8/1/18 (14) | 3,225 | 2,321 |
| Modesto CA Irrigation District COP | 5.500% | 7/1/35 | 1,000 | 975 |
| Modesto CA Irrigation District COP | 5.000% | 10/1/36 (2) | 4,795 | 4,324 |
| Modesto CA Irrigation District Financing | | | | |
| Authority Revenue (Woodland Project) | 6.500% | 10/1/11 (ETM) | 1,585 | 1,618 |
| Modesto CA Irrigation District Financing | | | | |
| Authority Revenue (Woodland Project) | 6.500% | 10/1/22 (ETM) | 9,750 | 12,159 |
| Monterey Park CA Redevelopment Agency | | | | |
| Tax Allocation Revenue | 5.000% | 9/1/16 (4) | 1,010 | 1,034 |
| Monterey Park CA Redevelopment Agency | | | | |
| Tax Allocation Revenue | 5.000% | 9/1/17 (4) | 1,060 | 1,080 |
| Monterey Park CA Redevelopment Agency | | | | |
| Tax Allocation Revenue | 5.000% | 9/1/18 (4) | 1,115 | 1,131 |
| Monterey Park CA Redevelopment Agency | | | | |
| Tax Allocation Revenue | 5.000% | 9/1/19 (4) | 1,120 | 1,133 |
| Monterey Park CA Redevelopment Agency | | | | |
| Tax Allocation Revenue | 5.000% | 9/1/20 (4) | 1,180 | 1,190 |
| Mount San Antonio CA Community College | | | | |
| District GO | 5.250% | 8/1/14 (Prere.) | 3,170 | 3,617 |
| Mount San Antonio CA Community College | | | | |
| District GO | 5.250% | 8/1/14 (Prere.) | 3,335 | 3,806 |
| Mount San Antonio CA Community College | | | | |
| District GO | 5.250% | 8/1/14 (Prere.) | 3,010 | 3,435 |
| Napa Valley CA Unified School District Election | | | | |
| GO | 4.500% | 8/1/42 (4) | 4,690 | 4,094 |
| New Haven CA Unified School District GO | 12.000% | 8/1/16 (4) | 2,480 | 3,718 |
| New Haven CA Unified School District GO | 12.000% | 8/1/17 (4) | 1,500 | 2,337 |
| Newark CA Unified School District GO | 0.000% | 8/1/11 (4) | 1,670 | 1,667 |
| Newark CA Unified School District GO | 0.000% | 8/1/12 (4) | 1,820 | 1,795 |
| Newark CA Unified School District GO | 0.000% | 8/1/13 (4) | 2,050 | 1,961 |
| Newport Beach CA Revenue (Hoag Memorial | | | | |
| Hospital Presbyterian) | 6.000% | 12/1/40 | 3,500 | 3,687 |
75
California Long-Term Tax-Exempt Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value |
| | Coupon | Date | ($000) | ($000) |
| 3 Newport Mesa CA Unified School District GO | 0.000% | 8/1/35 | 4,000 | 851 |
| 3 Newport Mesa CA Unified School District GO | 0.000% | 8/1/36 | 1,000 | 198 |
| 3 Newport Mesa CA Unified School District GO | 0.000% | 8/1/37 | 2,000 | 370 |
| 3 Newport Mesa CA Unified School District GO | 0.000% | 8/1/38 | 1,000 | 173 |
| North Orange County CA Community | | | | |
| College District GO | 5.375% | 8/1/12 (Prere.) | 5,080 | 5,415 |
| Northern California Gas Authority No. 1 Revenue | 0.654% | 7/1/13 | 14,000 | 13,554 |
| Northern California Gas Authority No. 1 Revenue | 0.803% | 7/1/17 | 17,000 | 14,760 |
| Northern California Power Agency Revenue | | | | |
| (Hydroelectric Project) | 5.000% | 7/1/11 | 2,000 | 2,008 |
| Northern California Power Agency Revenue | | | | |
| (Hydroelectric Project) | 5.000% | 7/1/12 | 2,935 | 3,072 |
| Northern California Power Agency Revenue | | | | |
| (Hydroelectric Project) | 5.000% | 7/1/18 | 3,500 | 4,001 |
| Northern California Power Agency Revenue | | | | |
| (Hydroelectric Project) | 6.300% | 7/1/18 (14) | 10,000 | 11,443 |
| Northern California Power Agency Revenue | | | | |
| (Hydroelectric Project) | 7.500% | 7/1/21 (Prere.) | 1,810 | 2,439 |
| Northern California Power Agency Revenue | | | | |
| (Hydroelectric Project) | 5.000% | 7/1/28 (14) | 11,140 | 11,114 |
| Oakland CA Redevelopment Agency | | | | |
| Tax Allocation Revenue (Central District Project) | 5.500% | 2/1/14 (2) | 2,890 | 2,931 |
| Oceanside CA Unified School District GO | 0.000% | 8/1/25 (12) | 6,865 | 2,918 |
| Orange County CA Water District COP VRDO | 0.120% | 6/7/11 | 5,700 | 5,700 |
| Orange County CA Water District Revenue | 5.000% | 8/15/41 | 6,855 | 6,991 |
| Palmdale CA COP | 5.250% | 9/1/19 (14) | 1,310 | 1,356 |
| Palmdale CA COP | 5.250% | 9/1/20 (14) | 1,450 | 1,496 |
| Palmdale CA COP | 5.250% | 9/1/21 (14) | 1,605 | 1,649 |
| Palmdale CA COP | 5.250% | 9/1/22 (14) | 1,765 | 1,803 |
| Palo Alto CA Improvement Revenue | | | | |
| (University Avenue Area Parking) | 5.700% | 9/2/18 | 890 | 910 |
| Palo Alto CA Improvement Revenue | | | | |
| (University Avenue Area Parking) | 5.700% | 9/2/19 | 895 | 913 |
| Palo Alto CA Improvement Revenue | | | | |
| (University Avenue Area Parking) | 5.750% | 9/2/20 | 890 | 902 |
| Palo Alto CA Improvement Revenue | | | | |
| (University Avenue Area Parking) | 5.750% | 9/2/26 | 4,460 | 4,437 |
| Palomar Pomerado Health System | | | | |
| California Revenue | 5.375% | 11/1/11 (14) | 3,865 | 3,871 |
| Palomar Pomerado Health System | | | | |
| California Revenue | 5.375% | 11/1/13 (14) | 6,730 | 6,739 |
| Palomar Pomerado Health System | | | | |
| California Revenue COP | 6.000% | 11/1/41 | 3,000 | 2,665 |
| Palomar Pomerado Health System | | | | |
| California Revenue GO | 4.500% | 8/1/32 (14) | 12,500 | 10,627 |
| Peralta CA Community College District Revenue | 5.000% | 8/1/39 | 4,000 | 3,781 |
| Pittsburg CA Redevelopment Agency | | | | |
| Tax Allocation Revenue (Los Medanos | | | | |
| Community Development Project) | 5.700% | 8/1/13 (Prere.) | 7,000 | 7,908 |
| Pittsburg CA Redevelopment Agency | | | | |
| Tax Allocation Revenue (Los Medanos | | | | |
| Community Development Project) | 0.000% | 8/1/19 (2) | 1,150 | 719 |
76
California Long-Term Tax-Exempt Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value |
| | Coupon | Date | ($000) | ($000) |
| Pittsburg CA Redevelopment Agency | | | | |
| Tax Allocation Revenue (Los Medanos | | | | |
| Community Development Project) | 0.000% | 8/1/21 (2) | 2,575 | 1,391 |
| Pittsburg CA Redevelopment Agency | | | | |
| Tax Allocation Revenue (Los Medanos | | | | |
| Community Development Project) | 0.000% | 8/1/22 (2) | 3,755 | 1,856 |
| Pittsburg CA Redevelopment Agency | | | | |
| Tax Allocation Revenue (Los Medanos | | | | |
| Community Development Project) | 0.000% | 8/1/24 (2) | 1,000 | 410 |
| Pomona CA Unified School District GO | 5.600% | 8/1/14 (ETM) | 1,585 | 1,832 |
| Pomona CA Unified School District GO | 5.600% | 8/1/15 (ETM) | 2,000 | 2,386 |
| Pomona CA Unified School District GO | 5.600% | 8/1/16 (ETM) | 1,000 | 1,220 |
| Pomona CA Unified School District GO | 7.500% | 8/1/17 (ETM) | 2,540 | 3,463 |
| Port of Oakland CA Revenue | 5.000% | 11/1/16 (14) | 8,160 | 9,068 |
| Port of Oakland CA Revenue | 5.000% | 11/1/17 (14) | 5,000 | 5,524 |
| Rancho Mirage CA Joint Powers Financing | | | | |
| Authority Revenue (Eisenhower Medical Center) | 5.000% | 7/1/47 | 15,900 | 12,588 |
| Rancho Mirage CA Redevelopment Agency | | | | |
| Tax Allocation Revenue | 5.125% | 4/1/21 (14) | 2,650 | 2,598 |
| Rancho Mirage CA Redevelopment Agency | | | | |
| Tax Allocation Revenue | 5.250% | 4/1/26 (14) | 2,905 | 2,637 |
| Rancho Mirage CA Redevelopment Agency | | | | |
| Tax Allocation Revenue | 5.250% | 4/1/33 (14) | 3,000 | 2,645 |
| Rio Hondo CA Community College District GO | 5.000% | 8/1/30 | 6,655 | 6,816 |
| 2 Riverside CA Electric Revenue TOB VRDO | 0.150% | 6/1/11 | 6,750 | 6,750 |
| Riverside CA Electric Revenue VRDO | 0.160% | 6/7/11 LOC | 12,900 | 12,900 |
| Riverside CA Unified School District Community | | | | |
| Facilities District No. 7 (Victoria Grove) Special | | | | |
| Tax Revenue) | 5.000% | 9/1/31 (2) | 7,295 | 6,485 |
| Riverside County CA Asset Leasing Corp. | | | | |
| Leasehold Revenue (Riverside County | | | | |
| Hospital Project) | 0.000% | 6/1/13 (14) | 5,000 | 4,657 |
| Riverside County CA Asset Leasing Corp. | | | | |
| Leasehold Revenue (Riverside County | | | | |
| Hospital Project) | 0.000% | 6/1/14 (14) | 2,000 | 1,788 |
| Riverside County CA Asset Leasing Corp. | | | | |
| Leasehold Revenue (Riverside County | | | | |
| Hospital Project) | 0.000% | 6/1/15 (14) | 2,000 | 1,700 |
| Roseville CA Electric System Revenue | 5.000% | 2/1/37 | 4,500 | 4,423 |
| Roseville CA Electric System Revenue COP VRDO | 0.170% | 6/7/11 LOC | 13,600 | 13,600 |
| Roseville CA Natural Gas Financing Authority | | | | |
| Gas Revenue | 5.000% | 2/15/22 | 1,440 | 1,411 |
| Roseville CA Natural Gas Financing Authority | | | | |
| Gas Revenue | 5.000% | 2/15/28 | 2,450 | 2,220 |
| Sacramento CA Financing Authority | | | | |
| Lease Revenue | 5.375% | 11/1/14 (2) | 6,835 | 7,102 |
| Sacramento CA Financing Authority | | | | |
| Lease Revenue | 5.400% | 11/1/20 (2) | 6,785 | 7,181 |
| Sacramento CA Municipal Utility District Revenue | 5.900% | 7/1/20 (2) | 15,850 | 18,846 |
| Sacramento County CA Airport Revenue | 5.250% | 7/1/12 (Prere.) | 2,305 | 2,429 |
| Sacramento County CA Sanitation Districts | | | | |
| Financing Authority Revenue | 5.000% | 12/1/26 (14) | 5,000 | 5,238 |
| Sacramento County CA Sanitation Districts | | | | |
| Financing Authority Revenue | 5.000% | 12/1/30 (14) | 5,650 | 5,790 |
77
California Long-Term Tax-Exempt Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value |
| | Coupon | Date | ($000) | ($000) |
| Sacramento County CA Water Financing | | | | |
| Authority Revenue (Agency Zones 40 & 41) | 5.000% | 6/1/21 (14) | 2,000 | 2,134 |
| San Bernardino County CA Medical Center COP | 6.500% | 8/1/17 (14) | 17,915 | 19,208 |
| San Diego CA Community College District GO | 5.250% | 8/1/33 | 2,500 | 2,584 |
| San Diego CA Public Facilities Financing | | | | |
| Authority Sewer Revenue | 5.250% | 5/15/34 | 6,000 | 6,177 |
| San Diego CA Public Facilities Financing | | | | |
| Authority Sewer Revenue | 5.250% | 5/15/39 | 7,000 | 7,137 |
| San Diego CA Public Facilities Financing | | | | |
| Authority Water Revenue | 5.750% | 8/1/35 | 2,500 | 2,687 |
| San Diego CA Public Facilities Financing | | | | |
| Authority Water Revenue | 5.500% | 8/1/39 | 5,000 | 5,220 |
| San Diego CA Unified School District GO | 0.000% | 7/1/15 (14) | 2,770 | 2,490 |
| San Diego CA Unified School District GO | 5.500% | 7/1/24 (14) | 10,000 | 11,325 |
| San Diego CA Unified School District GO | 5.500% | 7/1/24 (4) | 14,015 | 16,148 |
| San Diego CA Unified School District GO | 5.500% | 7/1/25 (14) | 9,000 | 10,091 |
| San Diego County CA COP | 5.250% | 10/1/21 | 1,485 | 1,488 |
| San Diego County CA COP | 5.000% | 2/1/28 (2) | 2,000 | 2,027 |
| San Diego County CA COP | 5.250% | 10/1/28 | 2,745 | 2,639 |
| San Diego County CA COP | 5.000% | 2/1/30 (2) | 2,345 | 2,360 |
| San Diego County CA COP | 5.375% | 10/1/41 | 7,045 | 6,228 |
| San Diego County CA Regional Airport | | | | |
| Authority Revenue | 5.000% | 7/1/34 | 2,715 | 2,625 |
| San Diego County CA Regional Airport | | | | |
| Authority Revenue | 5.000% | 7/1/40 | 3,000 | 2,842 |
| San Diego County CA Water | | | | |
| Authority Revenue COP | 5.000% | 5/1/26 (4) | 7,275 | 7,693 |
| San Francisco CA Bay Area Rapid | | | | |
| Transit District GO | 5.000% | 8/1/35 | 10,000 | 10,255 |
| San Francisco CA City & County International | | | | |
| Airport Revenue | 5.250% | 5/1/12 (Prere.) | 4,305 | 4,503 |
| San Francisco CA City & County International | | | | |
| Airport Revenue | 5.250% | 5/1/12 (Prere.) | 4,770 | 4,989 |
| San Francisco CA City & County International | | | | |
| Airport Revenue | 5.250% | 5/1/12 (Prere.) | 5,020 | 5,250 |
| San Francisco CA City & County International | | | | |
| Airport Revenue | 5.000% | 5/1/18 | 6,300 | 7,099 |
| San Francisco CA City & County International | | | | |
| Airport Revenue | 5.000% | 5/1/19 | 12,000 | 13,459 |
| San Francisco CA City & County International | | | | |
| Airport Revenue | 5.000% | 5/1/20 | 5,315 | 5,941 |
| 2 San Francisco CA City & County Public Utilites | | | | |
| Commission Water Revenue TOB VRDO | 0.180% | 6/7/11 | 11,500 | 11,500 |
| San Francisco CA City & County Public Utility | | | | |
| Commission Revenue | 5.000% | 11/1/35 | 2,605 | 2,653 |
| San Francisco CA City & County Public Utility | | | | |
| Commission Revenue | 4.750% | 11/1/36 (4) | 4,500 | 4,314 |
| San Francisco CA City & County Redevelopment | | | | |
| Financing Authority Tax Allocation Revenue | | | | |
| (Mission Bay North) | 6.500% | 8/1/39 | 2,000 | 2,015 |
| San Francisco CA City & County Redevelopment | | | | |
| Financing Authority Tax Allocation Revenue | | | | |
| (Mission Bay North) | 6.750% | 8/1/41 | 1,000 | 1,035 |
78
California Long-Term Tax-Exempt Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value |
| | Coupon | Date | ($000) | ($000) |
| San Francisco CA City & County Unified | | | | |
| School District GO | 5.250% | 6/15/24 | 4,000 | 4,481 |
| San Joaquin Hills CA Transportation Corridor | | | | |
| Agency Toll Road Revenue | 0.000% | 1/15/24 (14) | 6,000 | 2,176 |
| San Joaquin Hills CA Transportation Corridor | | | | |
| Agency Toll Road Revenue | 0.000% | 1/15/25 (14) | 6,000 | 1,751 |
| San Joaquin Hills CA Transportation Corridor | | | | |
| Agency Toll Road Revenue | 0.000% | 1/15/30 (14) | 7,000 | 1,232 |
| San Joaquin Hills CA Transportation Corridor | | | | |
| Agency Toll Road Revenue | 0.000% | 1/15/31 (14) | 11,950 | 1,916 |
| San Jose CA Airport Revenue | 5.000% | 3/1/33 (2) | 12,700 | 11,838 |
| San Jose CA Redevelopment Agency | | | | |
| Tax Allocation Revenue | 6.000% | 8/1/11 (14) | 5,930 | 5,964 |
| San Jose CA Redevelopment Agency | | | | |
| Tax Allocation Revenue | 5.500% | 8/1/30 | 850 | 787 |
| San Jose CA Redevelopment Agency | | | | |
| Tax Allocation Revenue | 5.500% | 8/1/35 | 2,750 | 2,432 |
| San Jose CA Special Hotel Tax Revenue | | | | |
| (Convention Center Expansion | | | | |
| & Renovation Project) | 6.500% | 5/1/42 | 5,000 | 5,124 |
| San Juan CA Unified School District GO | 0.000% | 8/1/13 (4) | 2,220 | 2,123 |
| San Juan CA Unified School District GO | 0.000% | 8/1/14 (4) | 2,610 | 2,418 |
| San Juan CA Unified School District GO | 0.000% | 8/1/16 (4) | 2,000 | 1,691 |
| San Juan CA Unified School District GO | 0.000% | 8/1/18 (4) | 1,785 | 1,323 |
| San Juan CA Unified School District GO | 0.000% | 8/1/19 (4) | 2,210 | 1,540 |
| San Juan CA Unified School District GO | 0.000% | 8/1/20 (4) | 4,930 | 3,193 |
| San Juan CA Unified School District GO | 0.000% | 8/1/23 (4) | 4,540 | 2,337 |
| San Mateo County CA Community | | | | |
| College District GO | 5.000% | 9/1/31 | 5,000 | 5,104 |
| San Mateo County CA Joint Powers Financing | | | | |
| Authority Lease Revenue | | | | |
| (Capital Project Program) | 6.500% | 7/1/13 (14) | 9,280 | 9,777 |
| San Mateo County CA Joint Powers Financing | | | | |
| Authority Lease Revenue | | | | |
| (Capital Project Program) | 5.000% | 7/1/21 (14) | 3,500 | 3,681 |
| San Ramon Valley CA Unified School District GO | 0.000% | 7/1/13 (14) | 3,680 | 3,556 |
| San Ramon Valley CA Unified School District GO | 0.000% | 7/1/14 (14) | 8,290 | 7,702 |
| San Ramon Valley CA Unified School District GO | 0.000% | 7/1/15 (14) | 2,005 | 1,788 |
| Santa Ana CA Financing Authority Police | | | | |
| Administration & Holding Facility Lease Revenue | 6.250% | 7/1/16 (14) | 5,345 | 5,903 |
| Santa Ana CA Financing Authority Police | | | | |
| Administration & Holding Facility Lease Revenue | 6.250% | 7/1/17 (14) | 2,000 | 2,199 |
| Santa Clara CA Electric Revenue | 5.000% | 7/1/21 (14) | 2,000 | 2,113 |
| Santa Clara CA Electric Revenue | 6.000% | 7/1/31 | 3,000 | 3,228 |
| Santa Clara County CA Financing Authority Lease | | | | |
| Revenue (Multiple Facilities Projects) | 5.250% | 5/15/36 | 5,000 | 4,959 |
| Santa Clara County CA Financing Authority Lease | | | | |
| Revenue (VMC Facility Replacement Project) | | | | |
| VRDO | 0.170% | 6/7/11 | 10,000 | 10,000 |
| Santa Rosa CA Wastewater Revenue | 6.000% | 7/2/15 (2) | 5,995 | 6,506 |
| Santa Rosa CA Wastewater Revenue | 6.000% | 9/1/15 (4) | 4,780 | 5,186 |
| Solano County CA COP | 5.250% | 11/1/12 (Prere.) | 3,785 | 4,045 |
| Solano County CA COP | 5.250% | 11/1/12 (Prere.) | 3,770 | 4,029 |
79
California Long-Term Tax-Exempt Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value |
| | Coupon | Date | ($000) | ($000) |
| South San Francisco CA Redevelopment Agency | | | | |
| Tax Allocation Revenue | 5.000% | 9/1/35 (14) | 8,610 | 7,125 |
| Southern California Public Power | | | | |
| Authority Revenue | 5.000% | 7/1/29 | 5,000 | 5,242 |
| Southern California Public Power | | | | |
| Authority Revenue (Milford Wind Corridor | | | | |
| Phase I Project) | 5.000% | 7/1/30 | 5,000 | 5,201 |
| Southern California Public Power Authority | | | | |
| Revenue (Natural Gas Project) | 5.000% | 11/1/17 | 1,865 | 1,934 |
| Southern California Public Power Authority | | | | |
| Revenue (Natural Gas Project) | 5.000% | 11/1/33 | 5,400 | 4,937 |
| Southern California Public Power Authority | | | | |
| Revenue (Transmission Project) | 5.750% | 7/1/21 (14) | 220 | 221 |
| Southern California Public Power Authority | | | | |
| Revenue (Transmission Project) | 5.000% | 7/1/23 | 5,000 | 5,404 |
| Tobacco Securitization Authority Revenue | | | | |
| (Northern California Tobacco Settlement) | 5.375% | 6/1/38 | 4,500 | 3,073 |
| Tobacco Securitization Authority Revenue | | | | |
| (Southern California Tobacco Settlement) | 4.750% | 6/1/25 | 9,455 | 7,957 |
| Tobacco Securitization Authority Revenue | | | | |
| (Southern California Tobacco Settlement) | 5.000% | 6/1/37 | 2,155 | 1,389 |
| Torrance CA Hospital Revenue | | | | |
| (Torrance Memorial Medical Center) | 5.000% | 9/1/40 | 3,000 | 2,648 |
| Turlock CA Irrigation District Revenue | 5.000% | 1/1/35 | 3,000 | 2,860 |
| Ukiah CA Electric Revenue | 6.250% | 6/1/18 (14) | 4,585 | 4,965 |
| Union CA Elementary School District GO | 0.000% | 9/1/15 (14) | 3,860 | 3,422 |
| Union CA Elementary School District GO | 0.000% | 9/1/16 (14) | 1,500 | 1,271 |
| Union CA Elementary School District GO | 0.000% | 9/1/17 (14) | 2,295 | 1,833 |
| Union CA Elementary School District GO | 0.000% | 9/1/18 (14) | 1,630 | 1,203 |
| Union CA Elementary School District GO | 0.000% | 9/1/19 (14) | 1,750 | 1,213 |
| Union CA Elementary School District GO | 0.000% | 9/1/20 (14) | 2,300 | 1,482 |
| Union CA Elementary School District GO | 0.000% | 9/1/21 (14) | 2,000 | 1,200 |
| University of California Revenue | 5.750% | 5/15/25 | 7,000 | 8,040 |
| University of California Revenue | 4.750% | 5/15/33 | 12,425 | 11,981 |
| University of California Revenue | 5.000% | 5/15/33 (2) | 20,790 | 20,809 |
| University of California Revenue | 5.000% | 5/15/34 | 3,220 | 3,267 |
| University of California Revenue | 5.000% | 5/15/40 | 1,905 | 1,902 |
| 2 University of California Revenue TOB VRDO | 0.240% | 6/7/11 | 2,300 | 2,300 |
| Vallejo CA Sanitation & Flood Control COP | 5.000% | 7/1/19 (14) | 4,279 | 4,388 |
| Ventura County CA Community College District | | | | |
| GO | 5.500% | 8/1/33 | 8,000 | 8,430 |
| Walnut CA Energy Center Authority Revenue | 5.000% | 1/1/35 | 2,000 | 1,907 |
| Walnut CA Energy Center Authority Revenue | 5.000% | 1/1/40 | 5,000 | 4,683 |
| Walnut Valley CA Unified School District GO | 6.000% | 8/1/14 (ETM) | 2,205 | 2,560 |
| Walnut Valley CA Unified School District GO | 6.000% | 8/1/15 (ETM) | 2,470 | 2,960 |
| Walnut Valley CA Unified School District GO | 6.000% | 8/1/16 (ETM) | 2,690 | 3,299 |
| Washington Township CA Health Care | | | | |
| District Revenue | 5.000% | 7/1/32 | 3,000 | 2,592 |
| Washington Township CA Health Care | | | | |
| District Revenue | 5.000% | 7/1/37 | 3,500 | 2,913 |
| Yuba City CA Unified School District GO | 0.000% | 9/1/15 (14) | 1,870 | 1,606 |
| Yuba City CA Unified School District GO | 0.000% | 9/1/17 (14) | 2,060 | 1,536 |
| Yuba City CA Unified School District GO | 0.000% | 9/1/19 (14) | 2,270 | 1,459 |
| | | | | 2,593,391 |
80
California Long-Term Tax-Exempt Fund
| | | | |
| | | | Face | Market |
| | | Maturity | Amount | Value |
| | Coupon | Date | ($000) | ($000) |
| Puerto Rico (0.9%) | | | | |
| Puerto Rico Municipal Finance Agency GO | 5.250% | 7/1/19 (11) | 2,250 | 2,346 |
| Puerto Rico Municipal Finance Agency GO | 5.250% | 7/1/20 (11) | 1,300 | 1,337 |
| Puerto Rico Municipal Finance Agency GO | 5.250% | 8/1/20 (11) | 2,255 | 2,318 |
| Puerto Rico Public Buildings Authority | | | | |
| Government Facilities Revenue | 5.250% | 7/1/14 (Prere.) | 75 | 85 |
| Puerto Rico Public Finance Corp. Revenue PUT | 5.750% | 2/1/12 LOC | 16,000 | 16,271 |
| | | | | 22,357 |
| Total Tax-Exempt Municipal Bonds (Cost $2,600,739) | | | | 2,615,748 |
| Other Assets and Liabilities (1.1%) | | | | |
| Other Assets | | | | 53,398 |
| Liabilities | | | | (23,053) |
| | | | | 30,345 |
| Net Assets (100%) | | | | 2,646,093 |
| |
| At May 31, 2011, net assets consisted of: | |
| | Amount |
| | ($000) |
| Paid-in Capital | 2,753,127 |
| Undistributed Net Investment Income | — |
| Accumulated Net Realized Losses | (121,308) |
| Unrealized Appreciation (Depreciation) | |
| Investment Securities | 15,009 |
| Futures Contracts | (735) |
| Net Assets | 2,646,093 |
| |
| Investor Shares—Net Assets | |
| Applicable to 40,635,001 outstanding $.001 par value shares of | |
| beneficial interest (unlimited authorization) | 444,713 |
| Net Asset Value Per Share—Investor Shares | $10.94 |
| |
| Admiral Shares—Net Assets | |
| Applicable to 201,147,895 outstanding $.001 par value shares of | |
| beneficial interest (unlimited authorization) | 2,201,380 |
| Net Asset Value Per Share—Admiral Shares | $10.94 |
See Note A in Notes to Financial Statements.
1 Securities with a value of $5,045,000 have been segregated as initial margin for open futures contracts.
2 Security exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be sold in transactions exempt from
registration, normally to qualified institutional buyers. At May 31, 2011, the aggregate value of these securities was $37,282,000,
representing 1.4% of net assets.
3 Security purchased on a when-issued or delayed-delivery basis for which the fund has not taken delivery as of May 31, 2011.
A key to abbreviations and other references follows the Statement of Net Assets.
See accompanying Notes, which are an integral part of the Financial Statements.
81
California Long-Term Tax-Exempt Fund
Key to Abbreviations
ARS—Auction Rate Security.
BAN—Bond Anticipation Note.
COP—Certificate of Participation.
CP—Commercial Paper.
FR—Floating Rate.
GAN—Grant Anticipation Note.
GO—General Obligation Bond.
PUT—Put Option Obligation.
RAN—Revenue Anticipation Note.
TAN—Tax Anticipation Note.
TOB—Tender Option Bond.
TRAN—Tax Revenue Anticipation Note.
VRDO—Variable Rate Demand Obligation.
VRDP—Variable Rate Demand Preferred.
(ETM)—Escrowed to Maturity.
(Prere.)—Prerefunded.
Scheduled principal and interest payments are guaranteed by:
(1) MBIA (Municipal Bond Investors Assurance).
(2) AMBAC (Ambac Assurance Corporation).
(3) FGIC (Financial Guaranty Insurance Company).
(4) AGM (Assured Guaranty Municipal Corporation).
(5) BIGI (Bond Investors Guaranty Insurance).
(6) Connie Lee Inc.
(7) FHA (Federal Housing Authority).
(8) CapMAC (Capital Markets Assurance Corporation).
(9) American Capital Access Financial Guaranty Corporation.
(10) XL Capital Assurance Inc.
(11) CIFG (CDC IXIS Financial Guaranty).
(12) Assured Guaranty Corporation.
(13) Berkshire Hathaway Assurance Corporation.
(14) National Public Finance Guarantee Corporation.
The insurance does not guarantee the market value of the municipal bonds.
LOC—Scheduled principal and interest payments are guaranteed by bank letter of credit.
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California Long-Term Tax-Exempt Fund
| |
| Statement of Operations | |
| |
| | Six Months Ended |
| | May 31, 2011 |
| | ($000) |
| Investment Income | |
| Income | |
| Interest | 60,036 |
| Total Income | 60,036 |
| Expenses | |
| The Vanguard Group—Note B | |
| Investment Advisory Services | 150 |
| Management and Administrative—Investor Shares | 320 |
| Management and Administrative—Admiral Shares | 868 |
| Marketing and Distribution—Investor Shares | 89 |
| Marketing and Distribution—Admiral Shares | 261 |
| Custodian Fees | 21 |
| Shareholders’ Reports—Investor Shares | 7 |
| Shareholders’ Reports—Admiral Shares | 4 |
| Trustees’ Fees and Expenses | 1 |
| Total Expenses | 1,721 |
| Net Investment Income | 58,315 |
| Realized Net Gain (Loss) | |
| Investment Securities Sold | (16,436) |
| Futures Contracts | (3,224) |
| Realized Net Gain (Loss) | (19,660) |
| Change in Unrealized Appreciation (Depreciation) | |
| Investment Securities | (1,984) |
| Futures Contracts | (728) |
| Change in Unrealized Appreciation (Depreciation) | (2,712) |
| Net Increase (Decrease) in Net Assets Resulting from Operations | 35,943 |
See accompanying Notes, which are an integral part of the Financial Statements.
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California Long-Term Tax-Exempt Fund
| | |
| Statement of Changes in Net Assets | | |
| |
| | Six Months Ended | Year Ended |
| | May 31, | November 30, |
| | 2011 | 2010 |
| | ($000) | ($000) |
| Increase (Decrease) in Net Assets | | |
| Operations | | |
| Net Investment Income | 58,315 | 127,238 |
| Realized Net Gain (Loss) | (19,660) | (10,367) |
| Change in Unrealized Appreciation (Depreciation) | (2,712) | 16,820 |
| Net Increase (Decrease) in Net Assets Resulting from Operations | 35,943 | 133,691 |
| Distributions | | |
| Net Investment Income | | |
| Investor Shares | (9,985) | (28,895) |
| Admiral Shares | (48,330) | (98,343) |
| Realized Capital Gain | | |
| Investor Shares | — | — |
| Admiral Shares | — | — |
| Total Distributions | (58,315) | (127,238) |
| Capital Share Transactions | | |
| Investor Shares | (79,139) | (166,988) |
| Admiral Shares | (101,941) | 136,419 |
| Net Increase (Decrease) from Capital Share Transactions | (181,080) | (30,569) |
| Total Increase (Decrease) | (203,452) | (24,116) |
| Net Assets | | |
| Beginning of Period | 2,849,545 | 2,873,661 |
| End of Period | 2,646,093 | 2,849,545 |
See accompanying Notes, which are an integral part of the Financial Statements.
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California Long-Term Tax-Exempt Fund
Financial Highlights
| | | | | | |
| Investor Shares | | | | | | |
| Six Months | | | | | |
| | Ended | | | | | |
| For a Share Outstanding | May 31, | | | Year Ended November 30, |
| Throughout Each Period | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 |
| Net Asset Value, Beginning of Period | $11.01 | $10.98 | $10.19 | $11.46 | $11.86 | $11.65 |
| Investment Operations | | | | | | |
| Net Investment Income | .238 | .476 | .481 | .499 | .531 | .528 |
| Net Realized and Unrealized Gain (Loss) | | | | | | |
| on Investments | (.070) | .030 | .790 | (1.270) | (.400) | .232 |
| Total from Investment Operations | .168 | .506 | 1.271 | (.771) | .131 | .760 |
| Distributions | | | | | | |
| Dividends from Net Investment Income | (.238) | (.476) | (.481) | (.499) | (.531) | (.528) |
| Distributions from Realized Capital Gains | — | — | ��� | — | — | (.022) |
| Total Distributions | (.238) | (.476) | (.481) | (.499) | (.531) | (.550) |
| Net Asset Value, End of Period | $10.94 | $11.01 | $10.98 | $10.19 | $11.46 | $11.86 |
| |
| Total Return1 | 1.60% | 4.63% | 12.71% | -6.95% | 1.15% | 6.70% |
| |
| Ratios/Supplemental Data | | | | | | |
| Net Assets, End of Period (Millions) | $445 | $529 | $691 | $670 | $732 | $678 |
| Ratio of Total Expenses to | | | | | | |
| Average Net Assets | 0.20% | 0.20% | 0.20% | 0.15% | 0.15% | 0.16% |
| Ratio of Net Investment Income to | | | | | | |
| Average Net Assets | 4.47% | 4.26% | 4.51% | 4.51% | 4.58% | 4.52% |
| Portfolio Turnover Rate | 6% | 18% | 18% | 27% | 23% | 13% |
The expense ratio, net income ratio, and turnover rate for the current period have been annualized.
1 Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees.
See accompanying Notes, which are an integral part of the Financial Statements.
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California Long-Term Tax-Exempt Fund
Financial Highlights
| | | | | | |
| Admiral Shares | | | | | | |
| Six Months | | | | | |
| | Ended | | | | | |
| For a Share Outstanding | May 31, | | | Year Ended November 30, |
| Throughout Each Period | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 |
| Net Asset Value, Beginning of Period | $11.01 | $10.98 | $10.19 | $11.46 | $11.86 | $11.65 |
| Investment Operations | | | | | | |
| Net Investment Income | .243 | .485 | .490 | .507 | .540 | .536 |
| Net Realized and Unrealized Gain (Loss) | | | | | | |
| on Investments | (.070) | .030 | .790 | (1.270) | (.400) | .232 |
| Total from Investment Operations | .173 | .515 | 1.280 | (.763) | .140 | .768 |
| Distributions | | | | | | |
| Dividends from Net Investment Income | (.243) | (.485) | (.490) | (.507) | (.540) | (.536) |
| Distributions from Realized Capital Gains | — | — | — | — | — | (.022) |
| Total Distributions | (.243) | (.485) | (.490) | (.507) | (.540) | (.558) |
| Net Asset Value, End of Period | $10.94 | $11.01 | $10.98 | $10.19 | $11.46 | $11.86 |
| |
| Total Return | 1.64% | 4.72% | 12.80% | -6.88% | 1.22% | 6.78% |
| |
| Ratios/Supplemental Data | | | | | | |
| Net Assets, End of Period (Millions) | $2,201 | $2,321 | $2,183 | $2,078 | $2,251 | $1,972 |
| Ratio of Total Expenses to | | | | | | |
| Average Net Assets | 0.12% | 0.12% | 0.12% | 0.08% | 0.08% | 0.09% |
| Ratio of Net Investment Income to | | | | | | |
| Average Net Assets | 4.55% | 4.34% | 4.59% | 4.58% | 4.65% | 4.59% |
| Portfolio Turnover Rate | 6% | 18% | 18% | 27% | 23% | 13% |
| The expense ratio, net income ratio, and turnover rate for the current period have been annualized. | | | |
See accompanying Notes, which are an integral part of the Financial Statements.
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California Long-Term Tax-Exempt Fund
Notes to Financial Statements
Vanguard California Long-Term Tax-Exempt Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund invests in debt instruments of municipal issuers whose ability to meet their obligations may be affected by economic and political developments in the state. The fund offers two classes of shares: Investor Shares and Admiral Shares. Investor Shares are available to any investor who meets the fund’s minimum purchase requirements. Admiral Shares are designed for investors who meet certain administrative, service, and account-size criteria.
A. The following significant accounting policies conform to generally accepted accounting principles for U.S. mutual funds. The fund consistently follows such policies in preparing its financial statements.
1. Security Valuation: Bonds, and temporary cash investments acquired over 60 days to maturity, are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services. Other temporary cash investments are valued at amortized cost, which approximates market value. Securities for which market quotations are not readily available, or whose values have been affected by events occurring before the fund’s pricing time but after the close of the securities’ primary markets, are valued by methods deemed by the board of trustees to represent fair value.
2. Futures Contracts: The fund uses futures contracts to invest in fixed income asset classes with greater efficiency and lower cost than is possible through direct investment, to add value when these instruments are attractively priced, or to adjust sensitivity to changes in interest rates. The primary risks associated with the use of futures contracts are imperfect correlation between changes in market values of bonds held by the fund and the prices of futures contracts, and the possibility of an illiquid market.
Futures contracts are valued based upon their quoted daily settlement prices. The aggregate principal amounts of the contracts are not recorded in the Statement of Net Assets. Fluctuations in the value of the contracts are recorded in the Statement of Net Assets as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until the contracts are closed, when they are recorded as realized futures gains (losses).
3. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute all of its income. Management has analyzed the fund’s tax positions taken for all open federal income tax years (November 30, 2007–2010), and for the period ended May 31, 2011, and has concluded that no provision for federal income tax is required in the fund’s financial statements.
4. Distributions: Distributions from net investment income are declared daily and paid on the first business day of the following month. Annual distributions from realized capital gains, if any, are recorded on the ex-dividend date.
5. Other: Interest income is accrued daily. Premiums and discounts on debt securities purchased are amortized and accreted, respectively, to interest income over the lives of the respective securities. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.
Each class of shares has equal rights as to assets and earnings, except that each class separately bears certain class-specific expenses related to maintenance of shareholder accounts (included in Management and Administrative expenses) and shareholder reporting. Marketing and distribution
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California Long-Term Tax-Exempt Fund
expenses are allocated to each class of shares based on a method approved by the board of trustees. Income, other non-class-specific expenses, and gains and losses on investments are allocated to each class of shares based on its relative net assets.
B. The Vanguard Group furnishes at cost investment advisory, corporate management, administrative, marketing, and distribution services. The costs of such services are allocated to the fund under methods approved by the board of trustees. The fund has committed to provide up to 0.40% of its net assets in capital contributions to Vanguard. At May 31, 2011, the fund had contributed capital of $405,000 to Vanguard (included in Other Assets), representing 0.02% of the fund’s net assets and 0.16% of Vanguard’s capitalization. The fund’s trustees and officers are also directors and officers of Vanguard.
C. Various inputs may be used to determine the value of the fund’s investments. These inputs are summarized in three broad levels for financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.
Level 1—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments).
The following table summarizes the fund’s investments as of May 31, 2011, based on the inputs used to value them:
| | | |
| | Level 1 | Level 2 | Level 3 |
| Investments | ($000) | ($000) | ($000) |
| Tax-Exempt Municipal Bonds | — | 2,615,748 | — |
| Futures Contracts—Liabilities1 | (133) | — | — |
| Total | (133) | 2,615,748 | — |
| 1 Represents variation margin on the last day of the reporting period. | | | |
D. At May 31, 2011, the aggregate settlement value of open futures contracts and the related unrealized appreciation (depreciation) were:
| | | | |
| | | | | ($000) |
| | | | Aggregate | |
| | | Number of | Settlement | Unrealized |
| | | Long (Short) | Value | Appreciation |
| Futures Contracts | Expiration | Contracts | Long (Short) | (Depreciation) |
| 2-Year U.S. Treasury Note | September 2011 | (303) | (66,414) | (81) |
| 10-Year U.S. Treasury Note | September 2011 | (502) | (61,550) | (455) |
| 5-Year U.S. Treasury Note | September 2011 | (301) | (35,861) | (199) |
Unrealized appreciation (depreciation) on open futures contracts is required to be treated as realized gain (loss) for tax purposes.
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California Long-Term Tax-Exempt Fund
E. Capital gain distributions are determined on a tax basis and may differ from realized capital gains for financial reporting purposes. Differences may be permanent or temporary. Permanent differences are reclassified among capital accounts in the financial statements to reflect their tax character. Temporary differences arise when gains or losses are recognized in different periods for financial statement and tax purposes; these differences will reverse at some time in the future.
The fund’s tax-basis capital gains and losses are determined only at the end of each fiscal year. For tax purposes, at November 30, 2010, the fund had available capital loss carryforwards totaling $95,056,000 to offset future net capital gains of $971,000 through November 30, 2014, $18,323,000 through November 30, 2015, $22,521,000 through November 30, 2016, $40,669,000 through November 30, 2017, and $12,572,000 through November 30, 2018. The fund will use these capital losses to offset net taxable capital gains, if any, realized during the year ending November 30, 2011; should the fund realize net capital losses for the year, the losses will be added to the loss carryforward balance above.
The fund had realized losses totaling $6,599,000 through November 30, 2010, which are deferred for tax purposes and reduce the amount of tax-basis unrealized appreciation on investment securities.
At May 31, 2011, the cost of investment securities for tax purposes was $2,607,338,000. Net unrealized appreciation of investment securities for tax purposes was $8,410,000, consisting of unrealized gains of $79,521,000 on securities that had risen in value since their purchase and $71,111,000 in unrealized losses on securities that had fallen in value since their purchase.
F. During the six months ended May 31, 2011, the fund purchased $78,208,000 of investment securities and sold $313,386,000 of investment securities, other than temporary cash investments.
G. Capital share transactions for each class of shares were:
| | | | |
| | Six Months Ended | | Year Ended |
| | | May 31, 2011 | November 30, 2010 |
| | Amount | Shares | Amount | Shares |
| | ($000) | (000) | ($000) | (000) |
| Investor Shares | | | | |
| Issued | 41,436 | 3,880 | 142,311 | 12,760 |
| Issued in Lieu of Cash Distributions | 7,925 | 740 | 22,678 | 2,031 |
| Redeemed | (128,500) | (12,004) | (331,977) | (29,690) |
| Net Increase (Decrease)—Investor Shares | (79,139) | (7,384) | (166,988) | (14,899) |
| Admiral Shares | | | | |
| Issued | 236,950 | 22,133 | 540,819 | 48,360 |
| Issued in Lieu of Cash Distributions | 31,765 | 2,967 | 65,497 | 5,863 |
| Redeemed | (370,656) | (34,718) | (469,897) | (42,160) |
| Net Increase (Decrease)—Admiral Shares | (101,941) | (9,618) | 136,419 | 12,063 |
H. In preparing the financial statements as of May 31, 2011, management considered the impact of subsequent events for potential recognition or disclosure in these financial statements.
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About Your Fund’s Expenses
As a shareholder of the fund, you incur ongoing costs, which include costs for portfolio management, administrative services, and shareholder reports (like this one), among others. Operating expenses, which are deducted from a fund’s gross income, directly reduce the investment return of the fund.
A fund’s expenses are expressed as a percentage of its average net assets. This figure is known as the expense ratio. The following examples are intended to help you understand the ongoing costs (in dollars) of investing in your fund and to compare these costs with those of other mutual funds. The examples are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period.
The accompanying table illustrates your fund’s costs in two ways:
• Based on actual fund return. This section helps you to estimate the actual expenses that you paid over the period. The ”Ending Account Value“ shown is derived from the fund‘s actual return, and the third column shows the dollar amount that would have been paid by an investor who started with $1,000 in the fund. You may use the information here, together with the amount you invested, to estimate the expenses that you paid over the period.
To do so, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given for your fund under the heading ”Expenses Paid During Period.“
• Based on hypothetical 5% yearly return. This section is intended to help you compare your fund‘s costs with those of other mutual funds. It assumes that the fund had a yearly return of 5% before expenses, but that the expense ratio is unchanged. In this case—because the return used is not the fund’s actual return—the results do not apply to your investment. The example is useful in making comparisons because the Securities and Exchange Commission requires all mutual funds to calculate expenses based on a 5% return. You can assess your fund’s costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds.
Note that the expenses shown in the table are meant to highlight and help you compare ongoing costs only and do not reflect transaction costs incurred by the fund for buying and selling securities. Further, the expenses do not include any purchase, redemption, or account service fees described in the fund prospectus. If such fees were applied to your account, your costs would be higher. Your fund does not carry a “sales load.”
The calculations assume no shares were bought or sold during the period. Your actual costs may have been higher or lower, depending on the amount of your investment and the timing of any purchases or redemptions.
You can find more information about the fund’s expenses, including annual expense ratios, in the Financial Statements section of this report. For additional information on operating expenses and other shareholder costs, please refer to your fund’s current prospectus.
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| | | |
| Six Months Ended May 31, 2011 | | | |
| | Beginning | Ending | Expenses |
| | Account Value | Account Value | Paid During |
| | 11/30/2010 | 5/31/2011 | Period |
| Based on Actual Fund Return | | | |
| California Tax-Exempt Money Market Fund | $1,000.00 | $1,000.58 | $0.85 |
| California Intermediate-Term Tax-Exempt Fund | | | |
| Investor Shares | $1,000.00 | $1,021.20 | $1.01 |
| Admiral Shares | 1,000.00 | 1,021.61 | 0.60 |
| California Long-Term Tax-Exempt Fund | | | |
| Investor Shares | $1,000.00 | $1,015.97 | $1.01 |
| Admiral Shares | 1,000.00 | 1,016.37 | 0.60 |
| Based on Hypothetical 5% Yearly Return | | | |
| California Tax-Exempt Money Market Fund | $1,000.00 | $1,024.08 | $0.86 |
| California Intermediate-Term Tax-Exempt Fund | | | |
| Investor Shares | $1,000.00 | $1,023.93 | $1.01 |
| Admiral Shares | 1,000.00 | 1,024.33 | 0.61 |
| California Long-Term Tax-Exempt Fund | | | |
| Investor Shares | $1,000.00 | $1,023.93 | $1.01 |
| Admiral Shares | 1,000.00 | 1,024.33 | 0.61 |
The calculations are based on expenses incurred in the most recent six-month period. The funds’ annualized six-month expense ratios for that period are: for the California Tax-Exempt Money Market Fund, 0.17%; for the California Intermediate-Term Tax-Exempt Fund, 0.20% for Investor Shares and 0.12% for Admiral Shares; and for the California Long-Term Tax-Exempt Fund, 0.20% for Investor Shares and 0.12% for Admiral Shares. The dollar amounts shown as “Expenses Paid” are equal to the annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period, then divided by the number of days in the most recent 12-month period.
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Trustees Approve Advisory Arrangement
The board of trustees of Vanguard California Tax-Exempt Money Market Fund, Vanguard California Intermediate-Term Tax-Exempt Fund, and Vanguard California Long-Term Tax-Exempt Fund has renewed each fund’s investment advisory arrangement with The Vanguard Group, Inc. Vanguard—through its Fixed Income Group—serves as the investment advisor for the funds. The board determined that continuing the funds’ internalized management structure was in the best interests of the funds and their shareholders.
The board based its decision upon an evaluation of the advisor’s investment staff, portfolio management process, and performance. The trustees considered the factors discussed below, among others. However, no single factor determined whether the board approved the arrangement. Rather, it was the totality of the circumstances that drove the board’s decision.
Nature, extent, and quality of services
The board considered the quality of the funds’ investment management over both the short and long term, and took into account the organizational depth and stability of the advisor. The board noted that Vanguard has been managing investments for more than three decades. The Fixed Income Group adheres to a sound, disciplined investment management process; the team has considerable experience, stability, and depth.
The board concluded that Vanguard’s experience, stability, depth, and performance, among other factors, warranted continuation of the advisory arrangement.
Investment performance
The board considered the short- and long-term performance of the funds, including any periods of outperformance or underperformance of relevant benchmarks and peer groups. The board concluded that the funds have performed in line with expectations and that their results have been consistent with their investment strategies. Information about the funds’ most recent performance can be found in the Performance Summary sections of this report.
Cost
The board concluded that each fund’s expense ratio was well below the average expense ratio charged by funds in its peer group and that the funds’ advisory fee rates were also well below their peer-group averages. Information about the funds’ expenses appears in the About Your Fund’s Expenses section of this report as well as in the Financial Statements sections.
The board does not conduct a profitability analysis of Vanguard because of Vanguard’s unique “at-cost” structure. Unlike most other mutual fund management companies, Vanguard is owned by the funds it oversees, and produces “profits” only in the form of reduced expenses for fund shareholders.
The benefit of economies of scale
The board concluded that the funds’ low-cost arrangement with Vanguard ensures that the funds will realize economies of scale as they grow, with the cost to shareholders declining as fund assets increase.
The board will consider whether to renew the advisory arrangement again after a one-year period.
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Glossary
7-Day SEC Yield and 30-Day SEC Yield. A money market fund’s 7-day SEC yield is calculated by annualizing its income distributions for the previous seven days, as required by the U.S. Securities and Exchange Commission. For other funds, 30-day SEC yield is derived using a formula specified by the commission. Under the formula, data related to the fund’s security holdings in the previous 30 days are used to calculate the fund’s hypothetical net income for that period, which is then annualized and divided by the fund’s estimated average net assets over the calculation period. For the purposes of this calculation, a security’s income is based on its current market yield to maturity (in the case of bonds) or its projected dividend yield (for stocks). Because the SEC yield represents hypothetical annualized income, it will differ—at times significantly—from the fund’s actual experience. As a result, the fund’s income distributions may be higher or lower than implied by the SEC yield.
Average Coupon. The average interest rate paid on the fixed income securities held by a fund. It is expressed as a percentage of face value.
Average Duration. An estimate of how much the value of the bonds held by a fund will fluctuate in response to a change in interest rates. To see how the value could change, multiply the average duration by the change in rates. If interest rates rise by 1 percentage point, the value of the bonds in a fund with an average duration of five years would decline by about 5%. If rates decrease by a percentage point, the value would rise by 5%.
Average Effective Maturity. The average length of time until fixed income securities held by a fund reach maturity and are repaid, taking into consideration the possibility that the issuer may call the bond before its maturity date. The figure reflects the proportion of fund assets represented by each security; it also reflects any futures contracts held. In general, the longer the average effective maturity, the more a fund’s share price will fluctuate in response to changes in market interest rates.
Average Weighted Maturity. The average length of time until fixed income securities held by a fund reach maturity and are repaid. The figure reflects the proportion of fund assets represented by each security.
Beta. A measure of the magnitude of a fund’s past share-price fluctuations in relation to the ups and downs of a given market index. The index is assigned a beta of 1.00. Compared with a given index, a fund with a beta of 1.20 typically would have seen its share price rise or fall by 12% when the index rose or fell by 10%. For this report, beta is based on returns over the past 36 months for both the fund and the index. Note that a fund’s beta should be reviewed in conjunction with its R-squared (see definition). The lower the R-squared, the less correlation there is between the fund and the index, and the less reliable beta is as an indicator of volatility.
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Credit Quality. For Vanguard money market funds, the Distribution by Credit Quality table includes tier ratings for consistency with SEC Rule 2a-7 under the Investment Company Act of 1940, which governs money market funds. A First Tier security is one that is eligible for money market funds and has been rated in the highest short-term rating category for debt obligations by the requisite nationally recognized statistical rating organizations. An unrated security is First Tier if it represents quality comparable to that of a rated security, as determined in accordance with SEC Rule 2a-7. A Second Tier security is one that is eligible for money market funds and is not a First Tier security. For the tax-exempt bond funds, credit-quality ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest). “Not Rated” is used to classify securities for which a rating is not available. Credit-quality ratings are obtained from Moody’s and S&P, and the higher rating for each issue is used.
Expense Ratio. The percentage of a fund’s average net assets used to pay its annual administrative and advisory expenses. These expenses directly reduce returns to investors.
Inception Date. The date on which the assets of a fund (or one of its share classes) are first invested in accordance with the fund’s investment objective. For funds with a subscription period, the inception date is the day after that period ends. Investment performance is measured from the inception date.
R-Squared. A measure of how much of a fund’s past returns can be explained by the returns from the market in general, as measured by a given index. If a fund’s total returns were precisely synchronized with an index’s returns, its R-squared would be 1.00. If the fund’s returns bore no relationship to the index’s returns, its R-squared would be 0. For this report, R-squared is based on returns over the past 36 months for both the fund and the index.
Short-Term Reserves. The percentage of a fund invested in highly liquid, short-term securities that can be readily converted to cash.
Yield to Maturity. The rate of return an investor would receive if the fixed income securities held by a fund were held to their maturity dates.
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The People Who Govern Your Fund
The trustees of your mutual fund are there to see that the fund is operated and managed in your best interests since, as a shareholder, you are a part owner of the fund. Your fund’s trustees also serve on the board of directors of The Vanguard Group, Inc., which is owned by the Vanguard funds and provides services to them on an at-cost basis.
A majority of Vanguard’s board members are independent, meaning that they have no affiliation with Vanguard or the funds they oversee, apart from the sizable personal investments they have made as private individuals. The independent board members have distinguished backgrounds in business, academia, and public service. Each of the trustees and executive officers oversees 177 Vanguard funds.
The following table provides information for each trustee and executive officer of the fund. More information about the trustees is in the Statement of Additional Information, which can be obtained, without charge, by contacting Vanguard at 800-662-7447, or online at vanguard.com.
| |
| Interested Trustee1 | and President (2006–2008) of Rohm and Haas Co. |
| | (chemicals); Director of Tyco International, Ltd. |
| F. William McNabb III | (diversified manufacturing and services) and Hewlett- |
| Born 1957. Trustee Since July 2009. Chairman of the | Packard Co. (electronic computer manufacturing); |
| Board. Principal Occupation(s) During the Past Five | Senior Advisor at New Mountain Capital; Trustee |
| Years: Chairman of the Board of The Vanguard Group, | of The Conference Board; Member of the Board of |
| Inc., and of each of the investment companies served | Managers of Delphi Automotive LLP (automotive |
| by The Vanguard Group, since January 2010; Director | components). |
| of The Vanguard Group since 2008; Chief Executive | |
| Officer and President of The Vanguard Group and of | Amy Gutmann |
| each of the investment companies served by The | Born 1949. Trustee Since June 2006. Principal |
| Vanguard Group since 2008; Director of Vanguard | Occupation(s) During the Past Five Years: President |
| Marketing Corporation; Managing Director of The | of the University of Pennsylvania; Christopher H. |
| Vanguard Group (1995–2008). | Browne Distinguished Professor of Political Science |
| | in the School of Arts and Sciences with secondary |
| | appointments at the Annenberg School for Commu- |
| Independent Trustees | nication and the Graduate School of Education |
| | of the University of Pennsylvania; Director of |
| Emerson U. Fullwood | Carnegie Corporation of New York, Schuylkill River |
| Born 1948. Trustee Since January 2008. Principal | Development Corporation, and Greater Philadelphia |
| Occupation(s) During the Past Five Years: Executive | Chamber of Commerce; Trustee of the National |
| Chief Staff and Marketing Officer for North America | Constitution Center; Chair of the Presidential |
| and Corporate Vice President (retired 2008) of Xerox | Commission for the Study of Bioethical Issues. |
| Corporation (document management products and | |
| services); Executive in Residence and 2010 | JoAnn Heffernan Heisen |
| Distinguished Minett Professor at the Rochester | Born 1950. Trustee Since July 1998. Principal |
| Institute of Technology; Director of SPX Corporation | Occupation(s) During the Past Five Years: Corporate |
| (multi-industry manufacturing), the United Way of | Vice President and Chief Global Diversity Officer |
| Rochester, Amerigroup Corporation (managed health | (retired 2008) and Member of the Executive |
| care), the University of Rochester Medical Center, | Committee (1997–2008) of Johnson & Johnson |
| Monroe Community College Foundation, and North | (pharmaceuticals/consumer products); Director of |
| Carolina A&T University. | Skytop Lodge Corporation (hotels), the University |
| | Medical Center at Princeton, the Robert Wood |
| Rajiv L. Gupta | Johnson Foundation, and the Center for Work Life |
| Born 1945. Trustee Since December 2001.2 | Policy; Member of the Advisory Board of the |
| Principal Occupation(s) During the Past Five Years: | Maxwell School of Citizenship and Public Affairs |
| Chairman and Chief Executive Officer (retired 2009) | at Syracuse University. |
| | |
| F. Joseph Loughrey | Thomas J. Higgins | |
| Born 1949. Trustee Since October 2009. Principal | Born 1957. Chief Financial Officer Since September |
| Occupation(s) During the Past Five Years: President | 2008. Principal Occupation(s) During the Past Five |
| and Chief Operating Officer (retired 2009) and Vice | Years: Principal of The Vanguard Group, Inc.; Chief |
| Chairman of the Board (2008–2009) of Cummins Inc. | Financial Officer of each of the investment companies |
| (industrial machinery); Director of SKF AB (industrial | served by The Vanguard Group since 2008; Treasurer |
| machinery), Hillenbrand, Inc. (specialized consumer | of each of the investment companies served by The |
| services), the Lumina Foundation for Education, and | Vanguard Group (1998–2008). |
| Oxfam America; Chairman of the Advisory Council | | |
| for the College of Arts and Letters and Member | Kathryn J. Hyatt | |
| of the Advisory Board to the Kellogg Institute for | Born 1955. Treasurer Since November 2008. Principal |
| International Studies at the University of Notre Dame. | Occupation(s) During the Past Five Years: Principal |
| | of The Vanguard Group, Inc.; Treasurer of each of |
| André F. Perold | the investment companies served by The Vanguard |
| Born 1952. Trustee Since December 2004. Principal | Group since 2008; Assistant Treasurer of each of the |
| Occupation(s) During the Past Five Years: George | investment companies served by The Vanguard Group |
| Gund Professor of Finance and Banking at the Harvard | (1988–2008). | |
| Business School; Chair of the Investment Committee | | |
| of HighVista Strategies LLC (private investment firm). | Heidi Stam | |
| | Born 1956. Secretary Since July 2005. Principal |
| Alfred M. Rankin, Jr. | Occupation(s) During the Past Five Years: Managing |
| Born 1941. Trustee Since January 1993. Principal | Director of The Vanguard Group, Inc., since 2006; |
| Occupation(s) During the Past Five Years: Chairman, | General Counsel of The Vanguard Group since 2005; |
| President, and Chief Executive Officer of NACCO | Secretary of The Vanguard Group and of each of the |
| Industries, Inc. (forklift trucks/housewares/lignite); | investment companies served by The Vanguard Group |
| Director of Goodrich Corporation (industrial products/ | since 2005; Director and Senior Vice President of |
| aircraft systems and services) and the National | Vanguard Marketing Corporation since 2005; |
| Association of Manufacturers; Chairman of the | Principal of The Vanguard Group (1997–2006). |
| Federal Reserve Bank of Cleveland; Vice Chairman | | |
| of University Hospitals of Cleveland; President of | | |
| the Board of The Cleveland Museum of Art. | Vanguard Senior Management Team |
| |
| Peter F. Volanakis | R. Gregory Barton | Michael S. Miller |
| Born 1955. Trustee Since July 2009. Principal | Mortimer J. Buckley | James M. Norris |
| Occupation(s) During the Past Five Years: President | Kathleen C. Gubanich | Glenn W. Reed |
| and Chief Operating Officer (retired 2010) of Corning | Paul A. Heller | George U. Sauter |
| Incorporated (communications equipment); Director of | Martha G. King | |
| Corning Incorporated (2000–2010) and Dow Corning | | |
| (2001–2010); Overseer of the Amos Tuck School of | | |
| Business Administration at Dartmouth College. | Chairman Emeritus and Senior Advisor |
| |
| | John J. Brennan | |
| Executive Officers | Chairman, 1996–2009 | |
| | Chief Executive Officer and President, 1996–2008 |
| Glenn Booraem | | |
| Born 1967. Controller Since July 2010. Principal | | |
| Occupation(s) During the Past Five Years: Principal | Founder | |
| of The Vanguard Group, Inc.; Controller of each of | | |
| the investment companies served by The Vanguard | John C. Bogle | |
| Group since 2010; Assistant Controller of each of | Chairman and Chief Executive Officer, 1974–1996 |
| the investment companies served by The Vanguard | | |
| Group (2001–2010). | | |
1 Mr. McNabb is considered an “interested person,” as defined in the Investment Company Act of 1940, because he is an officer of the Vanguard funds.
2 December 2002 for Vanguard Equity Income Fund, Vanguard Growth Equity Fund, the Vanguard Municipal Bond Funds, and the Vanguard State Tax-Exempt Funds.
|  |
| P.O. Box 2600 |
| Valley Forge, PA 19482-2600 |
Connect with Vanguard® > vanguard.com
| |
| Fund Information > 800-662-7447 | CFA® is a trademark owned by CFA Institute. |
| Direct Investor Account Services > 800-662-2739 | |
| Institutional Investor Services > 800-523-1036 | |
| Text Telephone for People | |
| With Hearing Impairment > 800-749-7273 | |
| |
| This material may be used in conjunction | |
| with the offering of shares of any Vanguard | |
| fund only if preceded or accompanied by | |
| the fund’s current prospectus. | |
| |
| All comparative mutual fund data are from Lipper Inc. or | |
| Morningstar, Inc., unless otherwise noted. | |
| |
| You can obtain a free copy of Vanguard’s proxy voting | |
| guidelines by visiting vanguard.com/proxyreporting or by | |
| calling Vanguard at 800-662-2739. The guidelines are | |
| also available from the SEC’s website, sec.gov. In | |
| addition, you may obtain a free report on how your fund | |
| voted the proxies for securities it owned during the 12 | |
| months ended June 30. To get the report, visit either | |
| vanguard.com/proxyreporting or sec.gov. | |
| |
| You can review and copy information about your fund at | |
| the SEC’s Public Reference Room in Washington, D.C. To | |
| find out more about this public service, call the SEC at | |
| 202-551-8090. Information about your fund is also | |
| available on the SEC’s website, and you can receive | |
| copies of this information, for a fee, by sending a | |
| request in either of two ways: via e-mail addressed to | |
| publicinfo@sec.gov or via regular mail addressed to the | |
| Public Reference Section, Securities and Exchange | |
| Commission, Washington, DC 20549-1520. | |
| | © 2011 The Vanguard Group, Inc. |
| | All rights reserved. |
| | Vanguard Marketing Corporation, Distributor. |
| |
| | Q752 072011 |
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: 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.
Not Applicable.
Item 11: Controls and Procedures.
(a) Disclosure Controls and Procedures. The Principal Executive and Financial Officers concluded that the Registrant's Disclosure Controls and Procedures are effective based on their evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report.
(b) Internal Control Over Financial Reporting. There were no significant changes in Registrant’s Internal Control Over Financial Reporting or in other factors that could significantly affect this control subsequent to the date of the evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.
Item 12: Exhibits.
(a) Certifications.
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.
| |
| | VANGUARD CALIFORNIA TAX-FREE FUNDS |
| |
| By: | /s/ F. WILLIAM MCNABB III* |
| | F. WILLIAM MCNABB III |
| | CHIEF EXECUTIVE OFFICER |
| |
| Date: July 25, 2011 |
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.
| |
| | VANGUARD CALIFORNIA TAX-FREE FUNDS |
| |
| By: | /s/ F. WILLIAM MCNABB III* |
| | F. WILLIAM MCNABB III |
| | CHIEF EXECUTIVE OFFICER |
| |
| Date: July 25, 2011 |
| |
| | VANGUARD CALIFORNIA TAX-FREE FUNDS |
| |
| By: | /s/ THOMAS J. HIGGINS* |
| | THOMAS J. HIGGINS |
| | CHIEF FINANCIAL OFFICER |
| |
| Date: July 25, 2011 |
* By: /s/ Heidi Stam
Heidi Stam, pursuant to a Power of Attorney filed on April 26, 2010, see file Number 33-53683,
Incorporated by Reference.
