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: 33-1569
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: R. GREGORY BARTON
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, 2002 - November 30, 2003
ITEM 1: Reports to Shareholders
VANGUARD(R) CALIFORNIA TAX-EXEMPT FUNDS
NOVEMBER 30, 2003
ANNUAL REPORT
[GRAPHICS]
VANGUARD(R) CALIFORNIA TAX-EXEMPT
MONEY MARKET FUND
VANGUARD(R) CALIFORNIA INTERMEDIATE-TERM
TAX-EXEMPT FUND
VANGUARD(R) CALIFORNIA LONG-TERM
TAX-EXEMPT FUND
THE VANGUARD GROUP (R)
HOW TO READ YOUR FUND REPORT
This report contains information that can help you evaluate your investment. It
includes details about your fund's return and presents data and analysis that
provide insight into the fund's performance and investment approach.
By reading the letter from Vanguard's chairman, John J. Brennan, together with
the letter from the managers who select securities for your fund, you'll get an
understanding of how the fund invests and how the market environment affected
its performance. The statistical information that follows can help you
understand how the fund's performance and characteristics stack up against those
of similar funds and market benchmarks.
It's important to keep in mind that the opinions expressed by Vanguard's
investment managers are just that: informed opinions. They should not be
considered promises or advice. The opinions, like the statistics, cover the
period through the date on the cover of this report. As things change--and in
the financial markets you can be certain ONLY of change--an investment manager's
job is to evaluate new information and make adjustments, if necessary. Of
course, the risks of investing in the fund are spelled out in the prospectus.
Frequent updates on the fund's performance and information about some of its
holdings are available on Vanguard.com(R).
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CONTENTS
1 LETTER FROM THE CHAIRMAN
7 REPORT FROM THE ADVISOR
11 FUND PROFILES
14 GLOSSARY OF INVESTMENT TERMS
15 PERFORMANCE SUMMARIES
18 ABOUT YOUR FUND'S EXPENSES
19 FINANCIAL STATEMENTS
61 ADVANTAGES OF VANGUARD.COM
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SUMMARY
* The Vanguard California Tax-Exempt Funds outperformed their peer-group
averages in fiscal year 2003.
* Interest rates in the taxable and municipal bond markets moved in different
directions during the period.
* The Vanguard funds achieved peer-beating results with the same emphasis on
prudence, quality, and low costs that has contributed to their long-term
success.
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LETTER FROM THE CHAIRMAN
Dear Shareholder,
During the 12 months ended November 30, 2003, the Vanguard California Tax-Exempt
Funds negotiated the volatile interest rate environment more successfully than
their average peer mutual funds.
[PICTURES OF JOHN J. BRENNAN]
- ---------------------------------------------
2003 TOTAL RETURNS FISCAL YEAR ENDED
NOVEMBER 30
- ---------------------------------------------
VANGUARD CALIFORNIA TAX-EXEMPT
MONEY MARKET FUND* 0.9%
(SEC 7-Day Annualized Yield: 0.91%)
Average California Tax-Exempt
Money Market Fund** 0.5
- ---------------------------------------------
VANGUARD CALIFORNIA
INTERMEDIATE-TERM TAX-EXEMPT FUND
Investor Shares 5.8%
Admiral Shares 5.8
Lehman 7 Year Municipal Bond Index 7.0
Average California Intermediate
Municipal Debt Fund** 4.7
- ---------------------------------------------
VANGUARD CALIFORNIA
LONG-TERM TAX-EXEMPT FUND
Investor Shares 7.0%
Admiral Shares 7.0
Lehman 10 Year Municipal Bond Index 6.9
Average California Municipal Debt Fund** 5.6
- ---------------------------------------------
Lehman Municipal Bond Index 6.7%
- ---------------------------------------------
*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.
**Derived from data provided by Lipper Inc.
The California Tax-Exempt Money Market Fund maintained its $1 share price (as is
expected but not guaranteed) while generating a significantly higher return than
the peer-group average, as illustrated in the adjacent table.
The California Intermediate- and Long-Term Tax-Exempt Funds generated relatively
high levels of income exempt from federal and California income tax. For both
funds, the total returns (reinvested distributions plus capital change) exceeded
the average returns for their peer groups--the Intermediate-Term Fund by 1.1
percentage points and the Long-Term Fund by 1.4 percentage points. The
Intermediate-Term Fund trailed its unmanaged benchmark, while the Long-Term Fund
outperformed two indexes of the municipal bond market. These benchmarks are
imperfect analogs for the funds' portfolios, but they nevertheless provide some
context
1
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ADMIRAL SHARES
A lower-cost class of shares available to many longtime shareholders and to
those with significant investments in the fund.
- --------------------------------------------------------------------------------
for the funds' performance relative to the municipal bond market generally.
At the end of November 2003, the Tax-Exempt Money Market Fund provided a yield
of 0.91%, down from 1.07% one year earlier. For California residents in the
highest federal income tax bracket, the fund's current yield was equivalent to a
fully taxable yield of 1.54% (accounting for state and federal taxes, but not
for local taxes or exposure to the alternative minimum tax). The yield of the
Intermediate-Term Tax-Exempt Fund's Investor Shares finished the year at 3.00%,
down from 3.42% at the end of November 2002, for a taxable equivalent yield of
5.09%. For the fund's Admiral Shares, the ending yield was 3.06% (down from
3.46% a year earlier), with a taxable equivalent yield of 5.19%. Finally, the
Investor Shares of the Long-Term Fund yielded 3.56% on November 30, down from
3.91% a year earlier, for a taxable equivalent yield of 6.04%. The Admiral
Shares' yield of 3.62% translated into a taxable equivalent yield of 6.14%.
Details of the per-share components of the funds' total returns-- starting and
ending net asset values, plus distributions--appear on page 6.
TAXABLE BONDS AND MUNICIPALS WENT THEIR SEPARATE WAYS
- --------------------------------------------------------------------------------
MARKET BAROMETER AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED NOVEMBER 30, 2003
-----------------------------------
ONE THREE FIVE
YEAR YEARS YEARS
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BONDS
Lehman Aggregate Bond Index 5.2% 7.9% 6.5%
(Broad taxable market)
Lehman Municipal Bond Index 6.7 7.2 5.7
Citigroup 3-Month Treasury Bill Index 1.1 2.4 3.6
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STOCKS
Russell 1000 Index (Large-caps) 16.9% -4.9% 0.2%
Russell 2000 Index (Small-caps) 36.3 8.5 8.0
Wilshire 5000 Index (Entire market) 19.0 -3.3 0.8
MSCI All Country World Index Free
ex USA (International) 27.1 -2.3 0.7
================================================================================
CPI
Consumer Price Index 1.8% 2.0% 2.4%
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During the past fiscal year, the yields of most U.S. Treasury securities rose,
even as the yields of their tax-exempt municipal counterparts declined. (Money
market securities were an exception to this interest rate pattern, however,
since they are subject more to the Federal Reserve Board's monetary-policy
actions than to market forces. The yields of the shortest-term municipal and
U.S. Treasury
2
securities declined during the fiscal year.) These disparate 12-month
performances reflected a sea change in investors' risk tolerance, as well as the
market's recognition of municipal bonds' exceptional value.
In November 2002, as the broad stock market rattled near bear-market lows and
fear was the dominant mood, investors embarked on a "flight to quality," bidding
up the prices of Treasuries. Over the next few months, successful combat
operations in Iraq, as well as upbeat economic and corporate-profit reports,
ignited a stock market rally, whetting an appetite for risk. In the bond market,
corporate issues outperformed risk-free Treasuries for the full fiscal year, and
in the stock market, volatile small-capitalization shares outperformed the broad
U.S. stock market: The small-cap Russell 2000 Index climbed 36.3%, while the
Wilshire 5000 Total Market Index returned 19.0%.
Although municipal securities are generally of high quality, they benefited from
the broader bond market's dynamics. When the fiscal year started, municipal
securities were largely ignored, leaving them with tax-exempt yields that were
very high relative to the yields of Treasuries. At the end of November 2002, a
10-year general-obligation municipal bond yielded 92% of what its Treasury
counterpart offered, despite the muni's significant tax advantages. As investors
were attracted to this disparity--bidding up munis and bidding down
Treasuries--the ratio declined to 82% at the end of November 2003, still high
but more typical of its historical level.
THE FUNDS' TRADITIONAL VIRTUES WERE IN EVIDENCE
Among intermediate- to long-term bonds--the focus of Vanguard California
Intermediate-Term Tax-Exempt Fund and the Long-Term Tax-Exempt Fund--yields
declined steadily through the first half of the fiscal year, touching 12-month
lows in late spring. During the second half, yields spiked in the summer, then
drifted back below their year-end 2002 levels.
The approach of the funds' advisor--Vanguard Fixed Income Group--to the past
year's market tumult was typically measured. The advisor made few changes to the
composition of the funds' high-quality port-folios. As of November 30, 2003,
more than 80% of each portfolio was invested in securities with top credit
ratings, slightly below the weightings a year earlier. The remaining assets were
invested mainly in securities rated A or higher, with just a sliver of assets in
bonds rated BBB. Anticipating higher interest rates in coming months, the
advisor
3
trimmed each portfolio's duration, reducing the funds' price sensitivity to rate
changes. This positioning produced a 7.0% total return for the Long-Term
Fund--2.2 percentage points from capital growth and 4.8 from income. The
Intermediate-Term Fund returned 5.8%--1.7 percentage points from capital growth
and 4.1 from income. The Fixed Income Group's skilled management, combined with
the funds' low operating costs, put the funds' results well ahead of their peer
groups' average returns. (For a comparison of the expense ratios of Vanguard's
funds with their peer-group averages, please see the table on page 18.)
As the yields of the shortest-term securities declined from their already low
levels during the period, the advisor nudged the average maturity of the
Tax-Exempt Money Market Fund marginally higher, from 45 days a year ago to 54
days on November 30, to mitigate the fund's decline in income. During the full
fiscal year, the fund returned 0.9%--0.4 percentage point more than the
peer-group average--again reflecting the powerful combination of skilled
management and low operating costs.
SKILLED MANAGEMENT, LOW COSTS, AND HIGH QUALITY ARE AN IMPRESSIVE TRIO
The same characteristics that explained our funds' strong relative performances
in fiscal 2003 have contributed to their excellent long-term returns. The table
below shows the average annual returns of the three funds over the past ten
years (nine-plus for the Intermediate-Term Fund), as well as the average returns
of their peer groups. We also display the growth of hypothetical initial
investments of $10,000 in the funds and their average peers.
As you can see, all of the funds outperformed their average peers, creating
additional wealth for shareholders. For example, the Long-Term
- --------------------------------------------------------------------------------
TOTAL RETURNS TEN YEARS ENDED NOVEMBER 30, 2003
- --------------------------------------------------------------------------------
AVERAGE FINAL VALUE OF A $10,000
ANNUAL RETURN INITIAL INVESTMENT
------------------- -----------------------------------
AVERAGE AVERAGE
CALIFORNIA VANGUARD COMPETING VANGUARD COMPETING VANGUARD
TAX-EXEMPT FUND FUND FUND FUND FUND ADVANTAGE
- --------------------------------------------------------------------------------
Money Market 2.7% 2.3% $13,068 $12,587 $ 481
Intermediate-Term
Investor Shares* 6.2 5.3 17,938 16,540 1,398
Long-Term
Investor Shares 6.3 5.1 18,393 16,523 1,870
- --------------------------------------------------------------------------------
*Annualized returns since fund's inception on March 4, 1994.
4
Tax-Exempt Fund's 1.2-percentage-point margin in average total return translated
into an extra $1,870 in shareholder wealth on a $10,000 investment--a
significant difference on a relatively modest initial outlay.
BONDS ARE VITAL IN ANY ENVIRONMENT
Today, municipal bond yields are lower than they were a year ago, which makes
continued declines in interest rates--and increases in bond prices--less likely.
A strengthening economy also suggests that rates are more likely to rise than to
fall.
In a sense, though, none of this matters. The primary reasons to invest in bond
funds are the same in any interest rate environment: diversification and income.
Bond funds are an essential component of a well-balanced portfolio, helping you
to meet your financial goals while keeping risk in check by counterbalancing
your stock investments. A related, but different, reason to hold bond funds is
that, over the long term, they generate virtually all of their returns from
income, which is generally a less volatile source of return than capital growth.
Changes in the share price of a bond fund--up or down--have relatively little
impact on the fund's total return over a period of many years. Income and the
interest earned on the reinvestment of that income are the long-term drivers of
the fund's return.
I want to close this letter with an assurance that the reports of late trading
and market-timing at some competing investment management firms are as
shocking--and upsetting--to us as they no doubt are to you. Vanguard has
policies and procedures in place to identify and deter such behavior. More
important, Vanguard shareholders can have confidence both in the integrity of
our excellent crew and in the virtues of our client-owned corporate structure--a
structure that aligns our day-to-day efforts with your long-term financial
goals.
Thank you for entrusting us with your assets.
Sincerely,
/S/JOHN J. BRENNAN
John J. Brennan
CHAIRMAN AND CHIEF EXECUTIVE OFFICER
DECEMBER 18, 2003
5
- --------------------------------------------------------------------------------
YOUR FUND'S PERFORMANCE AT A GLANCE NOVEMBER 30, 2002-NOVEMBER 30, 2003
DISTRIBUTIONS PER SHARE
-------------------------------
STARTING ENDING INCOME CAPITAL
SHARE PRICE SHARE PRICE DIVIDENDS GAINS
- --------------------------------------------------------------------------------
California Tax-Exempt
Money Market Fund $1.00 $1.00 $0.009 $0.000
- --------------------------------------------------------------------------------
California Intermediate-Term
Tax-Exempt Fund
Investor Shares $11.29 $11.44 $0.454 $0.038
Admiral Shares 11.29 11.44 0.461 0.038
- --------------------------------------------------------------------------------
California Long-Term
Tax-Exempt Fund
Investor Shares $11.76 $12.00 $0.542 $0.021
Admiral Shares 11.76 12.00 0.549 0.021
- --------------------------------------------------------------------------------
6
REPORT FROM THE ADVISOR
During fiscal 2003, Vanguard California Tax-Exempt Money Market Fund returned
0.9%. The Intermediate-Term Tax-Exempt Fund returned 5.8%, and the Long-Term
Tax-Exempt Fund returned 7.0%. All three outperformed their peer-group averages.
Generally declining interest rates in the municipal bond market translated into
lower yields for the funds at the fiscal year-end.
THE INVESTMENT ENVIRONMENT
Although growth was subdued in the first half of the period, the economy ground
into gear as the fiscal year progressed. In the third quarter of calendar 2003,
the nation's gross domestic product expanded at an annualized rate of 8.2%, a
20-year high. The job market, which was notably weak for much of the period,
also began to improve. From September to November, the unemployment rate dropped
0.2 percentage point to 5.9%. Despite signs of economic acceleration, inflation
remained remarkably tame. The Consumer Price Index rose just 1.8% in the 12
months ended November 30. The "core" CPI, which excludes volatile food and
energy prices, was up just 1.1%.
- --------------------------------------------------------------------------------
INVESTMENT PHILOSOPHY
The advisor believes that each fund, while operating within stated maturity and
stringent quality targets, can achieve a relatively high level of current income
that is exempt from federal and California income taxes by investing in
high-quality securities issued by California state, county, and municipal
governments.
- --------------------------------------------------------------------------------
Amid the murky economic picture for much of the year, the Federal Reserve Board
stood pat, at least until June, when it cut its target for the federal funds
rate--the rate banks charge one another for overnight loans--by 25 basis points
(0.25 percentage point) to 1.00%. As the year came to a close with the abundance
of rosy reports, the Fed kept its target unchanged, though it did acknowledge
that growth was accelerating. The Fed's cautious stance reflects its assessment
that the economy's "upside" and "downside" prospects are roughly equal. Our view
is that the economy will continue to expand, potentially raising interest rates.
7
GOOD RELATIVE VALUE MEANT A SOLID YEAR FOR MUNIS
Interest rates were volatile in both the municipal and U.S. Treasury markets,
though the yields in each group generally moved in opposite directions. The
yield of the 10-year Treasury note began the fiscal year at 4.21%, fell to a low
of 3.11% on June 13, then rebounded to finish the period at 4.33%.
By contrast, the yield of the 10-year AAA general-obligation municipal bond fell
during the year, declining 32 basis points to end the period at 3.55%. (On June
13, it was 2.85%.) The tables below display 12-month changes in the yield curves
of the municipal and Treasury markets. Both curves steepened, meaning that the
difference between the yields of shorter- and longer-term securities increased.
As the interest rate movements suggest, municipal bonds outperformed Treasuries;
the declining yields meant higher prices for municipals. The low level of new
municipal issuance nationwide and unusually good municipal bond values at the
start of the fiscal year help explain the strong overall performance.
- ----------------------------------------------------------------
YIELDS OF MUNICIPAL BONDS
(AAA-RATED GENERAL-OBLIGATION ISSUES)
CHANGE
MATURITY NOV. 30, 2002 NOV. 30, 2003 (BASIS POINTS)
- ----------------------------------------------------------------
2 years 1.70% 1.40% -30
5 years 2.75 2.39 -36
10 years 3.87 3.55 -32
30 years 5.01 4.72 -29
- ----------------------------------------------------------------
Source: The Vanguard Group.
- ----------------------------------------------------------------
YIELDS OF U.S. TREASURY SECURITIES
CHANGE
MATURITY NOV. 30, 2002 NOV. 30, 2003 (BASIS POINTS)
- ----------------------------------------------------------------
2 years 2.06% 2.04% -2
5 years 3.27 3.35 +8
10 years 4.21 4.33 +12
30 years 5.04 5.13 +9
- ----------------------------------------------------------------
Source: The Vanguard Group.
From January to November, the supply of new municipal bonds nationally rose 4.6%
from the same period a year earlier. If taxable municipal bonds are excluded,
however, supply increased just 1.2%. (During the year, the majority of taxable
muni bonds were issued to help state and local governments fund shortfalls in
their pension plans. The Vanguard California funds own no taxable municipal
debt.) California, however, bucked the national trend. New issuance in the
state, including taxable debt, increased by a relatively high 16.2%, which can
put pressure on the price of California's existing debt.
Of all the municipal markets, California's was perhaps the most newsworthy
during the past year. Gray Davis, the governor of California, was
8
recalled and replaced by voters with movie star Arnold Schwarzenegger. Shortly
after his inauguration, Governor Schwarzenegger unveiled his "California
Recovery Plan," part of which sought the issuance of $15 billion of additional
debt to fill the state's 2003 and 2004 budget deficits.
In December, Moody's downgraded California's general-obligation debt one notch
to Baa1, toward the lower end of investment-grade status. Standard & Poor's
currently rates California at BBB, also at the lower end of investment-grade. We
continue to monitor the situation closely.
Despite the political and fiscal dramas, California debt--and the municipal
market generally--benefited from investors' recognition of tax-exempt
securities' "cheapness" relative to Treasuries. At the beginning of the fiscal
year, a 10-year AAA general-obligation municipal bond yielded 92% of what a
10-year Treasury note paid--high by historical levels. By year-end, with muni
prices rising and Treasury prices declining, this ratio had declined to a more
normal 82%.
LOW EXPENSES HELP ENSURE THAT OUR QUALITY STAYS HIGH
Despite the decline in longer-term interest rates, we elected not to stretch for
yield in even longer maturities. In fact, we trimmed the Intermediate- and
Long-Term Tax-Exempt Funds' durations (a measure of interest rate sensitivity).
We don't consider the slightly higher yields available on longer-term bonds
sufficient compensation for the risk that interest rates will rise in the coming
year.
We made few changes to the funds' credit profiles, keeping them at their
customarily high level of quality. (Although the rating agencies downgraded
California debt, our Intermediate- and Long-Term portfolios have more than 80%
of assets in bonds receiving the highest ratings.) The Tax-Exempt Money Market
Fund maintained its exceptionally high-quality portfolio as well: Our
dollar-weighted credit rating on November 30 was MIG-1, the highest rating in a
pool of high-quality securities. We extended the Tax-Exempt Money Market Fund's
average maturity slightly during the year to take advantage of the opportunity
to earn slightly higher income without incurring meaningful additional risk. In
all three funds, our ability to maintain a high-quality portfolio while
delivering higher returns than competing funds is a reflection of Vanguard's low
expense ratios. There's no need to compromise quality in a quest for yield.
9
As municipal bond yields have declined, the always significant benefit of low
expenses has become even more apparent. An expense ratio of 1.2% (typical among
long-term tax-exempt funds) consumes almost one-fourth of the income generated
by a bond portfolio yielding 5%. When market yields fall to 3.5%, the typical
expense ratio looms much larger, consuming one-third of the available income.
Robert F. Auwaerter, PRINCIPAL
Christopher M. Ryon, PRINCIPAL
Pamela Wisehaupt Tynan, PRINCIPAL
Kathryn Allen, PRINCIPAL
Reid O. Smith, PRINCIPAL
VANGUARD FIXED INCOME GROUP
DECEMBER 17, 2003
10
FUND PROFILES
AS OF 11/30/2003
These Profiles provide snapshots of each fund's characteristics, compared where
indicated with both an appropriate market index and a broad market index. Key
terms are defined on page 14.
CALIFORNIA TAX-EXEMPT
MONEY MARKET FUND
- --------------------------------------
FINANCIAL ATTRIBUTES
Yield 0.9%
Average Weighted Maturity 54 days
Average Quality MIG-1
Expense Ratio 0.17%
- --------------------------------------
- -----------------------------------------------
DISTRIBUTION BY CREDIT QUALITY (% OF PORTFOLIO)
MIG-1/SP-1+ 70%
A-1/P-1 28
AAA 2
- -----------------------------------------------
Total 100%
- -----------------------------------------------
VISIT OUR WEBSITE AT VANGUARD.COM
FOR REGULARLY UPDATED FUND INFORMATION.
11
FUND PROFILES (CONTINUED)
CALIFORNIA INTERMEDIATE-TERM
TAX-EXEMPT FUND
- ----------------------------------------------------------------
FINANCIAL ATTRIBUTES
COMPARATIVE BROAD
FUND INDEX* INDEX**
- ----------------------------------------------------------------
Number of Issues 531 5,498 47,482
Yield -- --
Investor Shares 3.0%
Admiral Shares 3.1%
Yield to Maturity 3.0%+ -- --
Average Coupon 4.8% 5.2% 5.2%
Average Effective Maturity 5.2 years 6.9 years 13.8 years
Average Quality AAA AA+ AA+
Average Duration 4.3 years 5.4 years 8.1 years
Expense Ratio -- --
Investor Shares 0.17%
Admiral Shares 0.11%
Short-Term Reserves 9% -- --
- ----------------------------------------------------------------
- ------------------------------
DISTRIBUTION BY CREDIT QUALITY
(% OF PORTFOLIO)
- ------------------------------
AAA 82%
AA 4
A 10
BBB 4
- ------------------------------
Total 100%
- ------------------------------
- -------------------------
INVESTMENT FOCUS
CREDIT QUALITY HIGH
AVERAGE MATURITY MEDIUM
- -------------------------
- ------------------------------------------------------------
VOLATILITY MEASURES
COMPARATIVE BROAD
FUND INDEX* FUND INDEX**
- ------------------------------------------------------------
R-Squared 0.94 1.00 0.94 1.00
Beta 1.02 1.00 1.04 1.00
- ------------------------------------------------------------
- -----------------------------------------
DISTRIBUTION BY MATURITY (% OF PORTFOLIO)
Under 1 Year 10%
1-5 Years 31
5-10 Years 54
10-20 Years 5
- -----------------------------------------
Total 100%
- -----------------------------------------
*Lehman 7 Year Municipal Bond Index.
**Lehman Municipal Bond Index.
+Before expenses.
12
CALIFORNIA LONG-TERM
TAX-EXEMPT FUND
- ----------------------------------------------------------------
FINANCIAL ATTRIBUTES
COMPARATIVE BROAD
FUND INDEX* INDEX**
- ----------------------------------------------------------------
Number of Issues 340 9,054 47,482
Yield -- --
Investor Shares 3.6%
Admiral Shares 3.6%
Yield to Maturity 3.6%+ -- --
Average Coupon 4.1% 5.2% 5.2%
Average Effective Maturity 7.4 years 9.9 years 13.8 years
Average Quality AAA AA+ AA+
Average Duration 6.0 years 7.0 years 8.1 years
Expense Ratio -- --
Investor Shares 0.17%
Admiral Shares 0.11%
Short-Term Reserves 8% -- --
- ----------------------------------------------------------------
- ------------------------------
DISTRIBUTION BY CREDIT QUALITY
(% OF PORTFOLIO)
AAA 83%
AA 3
A 9
BBB 5
- ------------------------------
Total 100%
- ------------------------------
- ------------------------------
INVESTMENT FOCUS
CREDIT QUALITY HIGH
AVERAGE MATURITY LONG
- ------------------------------
- ------------------------------------------------------------
VOLATILITY MEASURES
COMPARATIVE BROAD
FUND INDEX* FUND INDEX**
- ------------------------------------------------------------
R-Squared 0.94 1.00 0.96 1.00
Beta 1.08 1.00 1.24 1.00
- ------------------------------------------------------------
- -----------------------------------------
DISTRIBUTION BY MATURITY (% OF PORTFOLIO)
Under 1 Year 9%
1-5 Years 23
5-10 Years 45
10-20 Years 20
20-30 Years 3
- -----------------------------------------
Total 100%
- -----------------------------------------
*Lehman 10 Year Municipal Bond Index.
**Lehman Municipal Bond Index.
+Before expenses.
VISIT OUR WEBSITE AT VANGUARD.COM
FOR REGULARLY UPDATED FUND INFORMATION.
13
GLOSSARY OF INVESTMENT TERMS
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 QUALITY. An indicator of credit risk, this figure is the average of the
ratings assigned to a fund's holdings by credit-rating agencies. The agencies
make their judgment after appraising an issuer's ability to meet its
obligations. Quality is graded on a scale, with Aaa or AAA indicating the most
creditworthy bond issuers and A-1 or MIG-1 indicating the most creditworthy
issuers of money market securities.
- --------------------------------------------------------------------------------
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%. A fund's beta should be reviewed in conjunction with its R-squared (see
definition below). 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.
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
SHORT-TERM RESERVES. The percentage of a fund invested in highly liquid,
short-term securities that can be readily converted to cash.
- --------------------------------------------------------------------------------
YIELD. A snapshot of a fund's interest income. The yield, expressed as a
percentage of the fund's net asset value, is based on income earned over the
past 30 days (7 days for money market funds) and is annualized, or projected
forward for the coming year.
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
14
PERFORMANCE SUMMARIES
AS OF 11/30/2003
All of the returns in this report represent past performance, which cannot be
used to predict future returns that may be achieved by the funds. 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 California
Tax-Exempt Money Market Fund seeks to preserve the value of your investment at
$1 per share, it is possible to lose money by investing in the fund. For bond
funds, both share price and return can fluctuate widely. An investor's shares,
when redeemed, 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 redemption of fund shares. The annualized yield shown for the money
market fund reflects the current earnings of the fund more closely than does the
total return.
CALIFORNIA TAX-EXEMPT MONEY MARKET FUND
- -----------------------------------------------------------
CUMULATIVE PERFORMANCE NOVEMBER 30, 1993-NOVEMBER 30, 2003
[MOUNTAIN CHART]
- -----------------------------------------------------------
CALIFORNIA AVERAGE CALIFORNIA
TAX-EXEMPT TAX-EXEMPT
MONTH YEAR MONEY MARKET FUND MONEY MARKET FUND
- -----------------------------------------------------------
November 1993 10000 10000
February 1994 10054 10047
May 1994 10114 10099
August 1994 10180 10156
November 1994 10259 10226
February 1995 10353 10308
May 1995 10453 10400
August 1995 10544 10480
November 1995 10638 10562
February 1996 10728 10643
May 1996 10815 10721
August 1996 10902 10793
November 1996 10992 10870
February 1997 11080 10947
May 1997 11175 11032
August 1997 11270 11113
November 1997 11366 11196
February 1998 11456 11275
May 1998 11552 11362
August 1998 11637 11435
November 1998 11719 11505
February 1999 11794 11570
May 1999 11877 11645
August 1999 11958 11717
November 1999 12045 11781
February 2000 12133 11862
May 2000 12239 11959
August 2000 12349 12058
November 2000 12460 12143
February 2001 12552 12227
May 2001 12647 12312
August 2001 12722 12376
November 2001 12780 12407
February 2002 12822 12439
May 2002 12869 12476
August 2002 12908 12506
November 2002 12950 12520
February 2003 12982 12544
May 2003 13017 12571
August 2003 13041 12589
November 2003 13068 12587
- -----------------------------------------------------------
- -------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED NOVEMBER 30, 2003
----------------------------------- FINAL VALUE
ONE FIVE TEN OF A $10,000
YEAR YEARS YEARS INVESTMENT
- -------------------------------------------------------------------------------------------
California Tax-Exempt Money Market Fund 0.91% 2.20% 2.71% $13,068
Average California Tax-Exempt Money Market Fund* 0.53 1.81 2.33 12,587
- -------------------------------------------------------------------------------------------
- -----------------------------------------------------------------
FISCAL-YEAR TOTAL RETURNS (%) NOVEMBER 30, 1993-NOVEMBER 30, 2003
- -----------------------------------------------------------------
CALIFORNIA TAX-EXEMPT AVERAGE
MONEY MARKET FUND FUND*
FISCAL TOTAL TOTAL
YEAR RETURN RETURN
- -----------------------------------------------------------------
1994 2.6% 2.3%
1995 3.7 3.3
1996 3.3 2.9
1997 3.4 3.0
1998 3.1 2.8
1999 2.8 2.4
2000 3.4 3.1
2001 2.6 2.2
2002 1.3 0.9
2003 0.9 0.5
- -----------------------------------------------------------------
SEC 7-DAY ANNUALIZED YIELD (11/30/2003): 0.91%
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED SEPTEMBER 30, 2003
This table presents average annual total 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
ONE FIVE -----------------
INCEPTION DATE YEAR YEARS CAPITAL INCOME TOTAL
- -----------------------------------------------------------------------------------------
CALIFORNIA TAX-EXEMPT MONEY MARKET FUND 6/1/1987 1.00% 2.27% 0.00% 2.74% 2.74%
- -----------------------------------------------------------------------------------------
*Returns for Average California Tax-Exempt Money Market Fund are derived from
data provided by Lipper Inc.
Note: See FINANCIAL HIGHLIGHTS table on page 53 for dividend information.
15
PERFORMANCE SUMMARIES (CONTINUED)
CALIFORNIA INTERMEDIATE-TERM TAX-EXEMPT FUND
- --------------------------------------------------------------------------------
CUMULATIVE PERFORMANCE MARCH 4, 1994-NOVEMBER 30, 2003
[MOUNTAIN CHART]
- -------------------------------------------------------------------------------------------
CALIFORNIA AVERAGE CALIFORNIA
INTERMEDIATE-TERM LEHMAN LEHMAN 7 YEAR INTERMEDIATE
TAX-EXEMPT MUNICIPAL BOND MUNICIPAL BOND MUNICIPAL
MONTH YEAR FUND INVESTOR SHARES INDEX INDEX DEBT FUND
- -------------------------------------------------------------------------------------------
March 1994 10000 10000 10000 10000
May 1994 10142 9758 9853 10039
August 1994 10313 9910 10026 10189
November 1994 9981 9418 9687 9813
February 1995 10538 10188 10244 10349
May 1995 10895 10647 10654 10730
August 1995 11044 10789 10908 10879
November 1995 11367 11198 11166 11171
February 1996 11539 11314 11295 11295
May 1996 11436 11133 11148 11180
August 1996 11668 11354 11333 11352
November 1996 12095 11856 11751 11731
February 1997 12175 11937 11855 11779
May 1997 12314 12055 11909 11909
August 1997 12603 12404 12215 12180
November 1997 12810 12706 12461 12361
February 1998 13113 13028 12757 12639
May 1998 13216 13186 12870 12761
August 1998 13528 13477 13146 13007
November 1998 13766 13692 13370 13191
February 1999 13902 13829 13517 13291
May 1999 13865 13802 13478 13283
August 1999 13711 13544 13343 13096
November 1999 13803 13545 13433 13120
February 2000 13873 13541 13401 13144
May 2000 13999 13684 13510 13304
August 2000 14791 14461 14169 13954
November 2000 14907 14653 14313 14027
February 2001 15422 15212 14852 14482
May 2001 15415 15345 15006 14556
August 2001 16043 15935 15498 15097
November 2001 16016 15936 15476 15054
February 2002 16348 16252 15844 15317
May 2002 16454 16344 15970 15425
August 2002 17013 16930 16562 15881
November 2002 16958 16943 16562 15798
February 2003 17411 17498 17141 16146
May 2003 17971 18037 17671 16580
August 2003 17437 17461 17145 16100
November 2003 17938 18071 17717 16540
- -------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED NOVEMBER 30, 2003
----------------------------------- FINAL VALUE
ONE FIVE TEN OF A $10,000
YEAR YEARS YEARS INVESTMENT
- -------------------------------------------------------------------------------------------
California Intermediate-Term Tax-Exempt
Fund Investor Shares 5.78% 5.44% 6.18% $17,938
Lehman Municipal Bond Index 6.65 5.71 6.26 18,071
Lehman 7 Year Municipal Bond Index 6.97 5.79 6.05 17,717
Average California Intermediate Municipal
Debt Fund** 4.70 4.63 5.30 16,540
- -------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FINAL VALUE
ONE SINCE OF A $250,000
YEAR INCEPTION* INVESTMENT
- --------------------------------------------------------------------------------
California Intermediate-Term Tax-Exempt
Fund Admiral Shares 5.84% 4.75% $274,969
Lehman Municipal Bond Index 6.65 5.55 279,244
Lehman 7 Year Municipal Bond Index 6.97 5.93 281,329
- --------------------------------------------------------------------------------
- -------------------------------------------------------------
FISCAL-YEAR TOTAL RETURNS (%) MARCH 4, 1994-NOVEMBER 30, 2003
- -------------------------------------------------------------
CALIFORNIA INTERMEDIATE-TERM
TAX-EXEMPT FUND INVESTOR SHARES LEHMAN+
FISCAL CAPITAL INCOME TOTAL TOTAL
YEAR RETURN RETURN RETURN RETURN
- -------------------------------------------------------------
1994 -3.6% 3.4% -0.2% -3.1%
1995 8.3 5.6 13.9 15.3
1996 1.3 5.1 6.4 5.2
1997 1.0 4.9 5.9 6.0
1998 2.7 4.8 7.5 7.3
1999 -4.1 4.4 0.3 0.5
2000 3.0 5.0 8.0 6.6
2001 2.8 4.6 7.4 8.1
2002 1.5 4.4 5.9 7.0
2003 1.7 4.1 5.8 7.0
- -------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED SEPTEMBER 30, 2003
THIS TABLE PRESENTS AVERAGE ANNUAL TOTAL 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.
- --------------------------------------------------------------------------------
SINCE INCEPTION
ONE FIVE ----------------------
INCEPTION DATE YEAR YEARS CAPITAL INCOME TOTAL
- --------------------------------------------------------------------------------
California Intermediate-Term Tax-Exempt Fund
Investor Shares 3/4/1994 2.44% 5.37% 1.49% 4.75% 6.24%
Admiral Shares 11/12/2001 2.50 4.91* -- -- --
- --------------------------------------------------------------------------------
*Returns since inception: for Investor Shares, March 4, 1994; for Admiral
Shares, November 12, 2001.
**Derived from data provided by Lipper Inc.
+Lehman 7 Year Municipal Bond Index.
Note: See FINANCIAL HIGHLIGHTS tables on page 54 for dividend and capital gains
information.
16
CALIFORNIA LONG-TERM TAX-EXEMPT FUND
- --------------------------------------------------------------------------------
CUMULATIVE PERFORMANCE NOVEMBER 30, 1993-NOVEMBER 30, 2003
[MOUNTAIN CHART]
- ---------------------------------------------------------------------------------------
CALIFORNIA AVERAGE CALIFORNIA
LONG-TERM LEHMAN LEHMAN 10 YEAR INTERMEDIATE
TAX-EXEMPT FUND MUNICIPAL BOND MUNICIPAL BOND MUNICIPAL
MONTH YEAR INVESTOR SHARES INDEX INDEX DEBT FUND*
- ---------------------------------------------------------------------------------------
November 1993 10000 10000 10000 10000
February 1994 10095 10060 10055 10046
May 1994 9823 9817 9856 9617
August 1994 9990 9970 10017 9747
November 1994 9412 9475 9554 9158
February 1995 10386 10250 10260 10043
May 1995 10794 10711 10741 10467
August 1995 10806 10854 10978 10439
November 1995 11305 11265 11326 11023
February 1996 11444 11382 11463 11105
May 1996 11200 11200 11249 10799
August 1996 11479 11422 11465 11046
November 1996 12086 11927 11967 11609
February 1997 12086 12009 12073 11589
May 1997 12240 12128 12169 11693
August 1997 12578 12478 12526 12023
November 1997 12874 12782 12811 12349
February 1998 13216 13107 13157 12617
May 1998 13362 13266 13297 12732
August 1998 13695 13558 13600 12998
November 1998 13944 13774 13850 13255
February 1999 14100 13912 13979 13289
May 1999 14028 13885 13911 13201
August 1999 13673 13625 13693 12809
November 1999 13635 13627 13792 12747
February 2000 13742 13623 13771 12727
May 2000 13914 13766 13886 12869
August 2000 14934 14548 14685 13705
November 2000 15150 14741 14847 13920
February 2001 15697 15304 15418 14348
May 2001 15635 15438 15524 14317
August 2001 16407 16031 16102 15022
November 2001 16323 16032 16068 15032
February 2002 16590 16350 16429 15163
May 2002 16666 16442 16543 15142
August 2002 17281 17032 17192 15654
November 2002 17198 17045 17141 15648
February 2003 17763 17604 17723 16013
May 2003 18458 18146 18375 16527
August 2003 17716 17566 17670 15867
November 2003 18393 18179 18320 16523
- ---------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED NOVEMBER 30, 2003
----------------------------------- FINAL VALUE
ONE FIVE TEN OF A $10,000
YEAR YEARS YEARS INVESTMENT
- -------------------------------------------------------------------------------------------
California Long-Term Tax-Exempt
Fund Investor Shares 6.95% 5.69% 6.28% $18,393
Lehman Municipal Bond Index 6.65 5.71 6.16 18,179
Lehman 10 Year Municipal Bond Index 6.88 5.75 6.24 18,320
Average California Municipal Debt Fund* 5.59 4.51 5.15 16,523
- -------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FINAL VALUE
ONE SINCE OF A $250,000
YEAR INCEPTION* INVESTMENT
- --------------------------------------------------------------------------------
California Long-Term Tax-Exempt Fund
Admiral Shares 7.01% 4.92% $275,857
Lehman Municipal Bond Index 6.65 5.55 279,244
Lehman 10 Year Municipal Bond Index 6.88 5.57 279,369
- --------------------------------------------------------------------------------
- -----------------------------------------------------------------
FISCAL-YEAR TOTAL RETURNS (%) NOVEMBER 30, 1993-NOVEMBER 30, 2003
- -----------------------------------------------------------------
CALIFORNIA LONG-TERM
TAX-EXEMPT FUND INVESTOR SHARES LEHMAN+
FISCAL CAPITAL INCOME TOTAL TOTAL
YEAR RETURN RETURN RETURN RETURN
- ------------------------------------------------------------------
1994 -11.0% 5.1% -5.9% -4.5%
1995 13.6 6.5 20.1 18.6
1996 1.3 5.6 6.9 5.7
1997 1.1 5.4 6.5 7.1
1998 3.1 5.2 8.3 8.1
1999 -7.0 4.8 -2.2 -0.4
2000 5.5 5.6 11.1 7.7
2001 2.6 5.1 7.7 8.2
2002 0.5 4.9 5.4 6.7
2003 2.2 4.8 7.0 6.9
- -------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED SEPTEMBER 30, 2003
THIS TABLE PRESENTS AVERAGE ANNUAL TOTAL 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.
- --------------------------------------------------------------------------------
SINCE INCEPTION
ONE FIVE ----------------------
INCEPTION DATE YEAR YEARS CAPITAL INCOME TOTAL
- --------------------------------------------------------------------------------
California Long-Term Tax-Exempt Fund
Investor Shares 4/7/1986 2.75% 5.54% 0.78% 5.29% 6.07%
Admiral Shares 11/12/2001 2.81 4.98** -- -- --
- --------------------------------------------------------------------------------
*Derived from data provided by Lipper Inc.; based on the Average California
Insured Municipal Debt Fund through March 31, 2002, and the Average California
Municipal Debt Fund thereafter.
**Return since inception on November 12, 2001.
+Lehman 10 Year Municipal Bond Index.
Note: See FINANCIAL HIGHLIGHTS tables on page 55 for dividend and capital gains
information.
17
ABOUT YOUR FUND'S EXPENSES
All mutual funds have operating expenses. These expenses 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 net assets. This figure is known
as the expense ratio.
A HYPOTHETICAL EXAMPLE
We believe it is important for you to understand the impact of costs on your
investment. The following example illustrates the costs that you would incur
over a 12-month period if you invested $10,000 in your fund, using the fund's
actual return and operating expenses for the fiscal year ended November 30,
2003. The cost in dollars is calculated by applying the expense ratio to the
average balance in the hypothetical account. For comparative purposes, we also
list the average expense ratio for each fund's peer group, which is derived from
data provided by Lipper Inc.
- --------------------------------------------------------------------------------
COST OF $10,000 FUND PEER GROUP*
INVESTMENT IN FUND EXPENSE RATIO EXPENSE RATIO
- --------------------------------------------------------------------------------
CALIFORNIA TAX-EXEMPT MONEY MARKET FUND $17 0.17% 0.59%
CALIFORNIA INTERMEDIATE-TERM TAX-EXEMPT FUND
Investor Shares 17 0.17 0.80
Admiral Shares 11 0.11 --
CALIFORNIA LONG-TERM TAX-EXEMPT FUND
Investor Shares 18 0.17 1.07
Admiral Shares 11 0.11 --
- --------------------------------------------------------------------------------
*Peergroups are: for the Tax-Exempt Money Market Fund, the Average
California Tax-Exempt Money Market Fund; for the Intermediate-Term
Tax-Exempt Fund, the Average California Intermediate Municipal Debt Fund;
for the Long-Term Tax-Exempt Fund, the Average California Municipal Debt
Fund.
The calculations assume no shares were sold. Your actual costs may have been
higher or lower, depending on the amount of your investment and your holding
period. Peer-group ratios capture data through year-end 2002.
You can find more information about the funds' expenses, including annual
expense ratios for the past five years, in the Financial Statements section of
this report. For additional information on operating expenses and other
shareholder costs, please refer to the funds' prospectus. The prospectus
presents hypothetical shareholder costs over various time periods based upon a
$10,000 investment and a return of 5% a year. This standardized example, which
appears in all mutual fund prospectuses, may be useful to you in comparing the
costs of investing in different funds.
18
FINANCIAL STATEMENTS
AS OF 11/30/2004
STATEMENT OF NET ASSETS
This Statement provides a detailed list of each fund's municipal bond holdings,
including each security's market value on the last day of the reporting period
and information on credit enhancements (insurance or letters of credit). Other
assets are added to, and liabilities are subtracted from, the value of TOTAL
MUNICIPAL BONDS to calculate the fund's NET ASSETS. Finally, NET ASSETS are
divided by the outstanding shares of the fund to arrive at its share price, or
NET ASSET VALUE (NAV) PER SHARE.
At the end of the Statement of Net Assets, you will find a table displaying the
composition of the fund's net assets. UNDISTRIBUTED NET INVESTMENT INCOME is
usually zero because the fund distributes its net income to shareholders as a
dividend each day. Any realized gains must be distributed annually, so the bulk
of net assets consists of PAID-IN CAPITAL (money invested by shareholders). The
balance shown for ACCUMULATED NET REALIZED GAINS usually approximates the amount
available to distribute to shareholders as taxable capital gains as of the
statement date, but may differ because certain investments or transactions may
be treated differently for financial statement and tax purposes. Any ACCUMULATED
NET REALIZED LOSSES, and any cumulative excess of distributions over net
realized gains, will appear as negative balances. UNREALIZED APPRECIATION
(DEPRECIATION) is the difference between the value of the fund's investments and
their cost, and reflects the gains (losses) that would be realized if the fund
were to sell all of its investments at their statement-date values.
- -------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
CALIFORNIA TAX-EXEMPT MONEY MARKET FUND COUPON DATE (000) (000)
- -------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS (99.3%)
- -------------------------------------------------------------------------------------------------------------------------
ABAG Finance Auth. for Non-Profit Corp. California
(Computer History Museum) VRDO 1.07% 12/8/2003 LOC $6,700 $6,700
ABAG Finance Auth. for Non-Profit Corp. California
(Valley Christian Schools) VRDO 1.10% 12/8/2003 LOC 11,000 11,000
Alameda-Contra Costa CA School Financing Auth.
(Capital Improvement Financing Pooled Project) COP VRDO 1.15% 12/8/2003 LOC 4,065 4,065
Anaheim CA Public Improvement Corp. Lease COP VRDO 1.04% 12/8/2003 (2) 25,180 25,180
California Dept. of Water Resources Water System Rev.
(Central Valley) TOB VRDO 1.14% 12/8/2003(3)* 17,050 17,050
California Dept. of Water Resources Water System Rev.
(Central Valley) TOB VRDO 1.15% 12/8/2003* 16,435 16,435
California Educ. Fac. Auth. Rev.
(California Institute of Technology) TOB VRDO 1.13% 12/8/2003* 13,000 13,000
California Educ. Fac. Auth. Rev.
(California Institute of Technology) TOB VRDO 1.13% 12/8/2003* 8,415 8,415
California Educ. Fac. Auth. Rev. (Pepperdine Univ.) VRDO 1.10% 12/8/2003 4,255 4,255
California Educ. Fac. Auth. Rev. (Stanford Univ.) CP 0.90% 1/7/2004 6,000 6,000
California Educ. Fac. Auth. Rev. (Stanford Univ.) CP 0.85% 1/16/2004 9,500 9,500
California Educ. Fac. Auth. Rev. (Stanford Univ.) CP 0.87% 2/12/2004 19,000 19,000
California Educ. Fac. Auth. Rev. (Stanford Univ.) TOB VRDO 1.12% 12/8/2003* 11,175 11,175
California Educ. Fac. Auth. Rev. (Stanford Univ.) VRDO 1.10% 12/8/2003 7,565 7,565
California Educ. Fac. Auth. Rev. (Stanford Univ.) VRDO 1.10% 12/8/2003 4,580 4,580
California Educ. Fac. Auth. Rev. (Stanford Univ.) VRDO 1.10% 12/8/2003 9,000 9,000
California Educ. Fac. Auth. Rev. (Univ. of San Francisco) VRDO 1.10% 12/8/2003 LOC 6,500 6,500
California Educ. Fac. Auth. Rev.
(Univ. of Southern /19/200 4,600 California) PUT 1.05% 03/19/2004 14,600 14,600
19
- ----------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
CALIFORNIA TAX-EXEMPT MONEY MARKET FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------
California GO 5.70% 8/1/2004(Prere.) $16,500 $17,333
California GO 5.75% 8/1/2004(3)(Prere.)14,145 14,868
California GO RAN 2.00% 6/23/2003LOC 75,000 75,389
California GO TOB VRDO 1.13% 12/8/2003(10) 23,905 23,905
California GO TOB VRDO 1.13% 12/8/2003(4)* 24,380 24,380
California GO TOB VRDO 1.15% 12/8/2003(2)* 5,250 5,250
California GO TOB VRDO 1.16% 12/8/2003(10)* 4,995 4,995
California GO TOB VRDO 1.17% 12/8/2003(4)* 66,975 66,975
California GO TOB VRDO 1.20% 12/8/2003(2)* 19,500 19,500
California GO VRDO 1.05% 12/1/2003 LOC 4,100 4,100
California GO VRDO 1.05% 12/1/2003 LOC 3,400 3,400
California GO VRDO 1.10% 12/1/2003 LOC 11,250 11,250
California GO VRDO 1.12% 12/8/2003 LOC 5,200 5,200
California Health Fac. Finance Auth. Rev.
(Adventist Health System West Sutter Health) VRDO 1.10% 12/8/2003 LOC 20,900 20,900
California Health Fac. Finance Auth. Rev.
(Adventist Health System West Sutter Health) VRDO 1.22% 12/8/2003 LOC 7,800 7,800
California Health Fac. Finance Auth. Rev.
(Catholic Healthcare West) VRDO 1.12% 12/8/2003(1) 7,300 7,300
California Health Fac. Finance Auth. Rev.
(Memorial Health Services) VRDO 1.12% 12/8/2003 42,220 42,220
California Housing Finance Agency Home Mortgage Rev.
(Multi-Family Housing III) VRDO 1.15% 12/1/2003 6,085 6,085
California Housing Finance Agency Home Mortgage Rev.
(Multi-Family Housing III) VRDO 1.05% 12/8/2003 5,800 5,800
California Housing Finance Agency Home Mortgage Rev.
(Multi-Family Housing III) VRDO 1.12% 12/8/2003 57,135 57,135
California Housing Finance Agency Home Mortgage Rev. PUT 1.08% 2/4/2004 30,000 30,000
California Housing Finance Agency Home Mortgage Rev. PUT 1.15% 8/1/2004 51,000 51,000
California Housing Finance Agency
Home Mortgage Rev. VRDO 1.02% 12/1/2003 600 600
California Housing Finance Agency
Home Mortgage Rev. VRDO 1.10% 12/1/2003 10,000 10,000
California Housing Finance Agency
Home Mortgage Rev. VRDO 1.15% 12/1/2003(4) 4,500 4,500
California Housing Finance Agency
Home Mortgage Rev. VRDO 1.10% 12/8/2003(4) 10,000 10,000
California Housing Finance Agency
Home Mortgage Rev. VRDO 1.10% 12/8/2003(1) 16,800 16,800
California Housing Finance Agency
Home Mortgage Rev. VRDO 1.10% 12/8/2003(4) 25,000 25,000
California Housing Finance Agency
Home Mortgage Rev. VRDO 1.15% 12/8/2003(4) 5,000 5,000
California Housing Finance Agency
Home Mortgage Rev. VRDO 1.15% 12/8/2003(4) 5,000 5,000
California Infrastructure & Econ. Dev. Bank
(Bay Area Toll) TOB VRDO 1.13% 12/8/2003(2)* 21,000 21,000
California Infrastructure & Econ. Dev. Bank
(J Paul Getty Trust) CP 0.85% 12/19/2003 6,000 6,000
California Infrastructure & Econ. Dev. Bank
(J Paul Getty Trust) PUT 1.00% 5/13/2004 10,000 10,000
20
- -------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
CALIFORNIA TAX-EXEMPT MONEY MARKET FUND COUPON DATE (000) (000)
- -------------------------------------------------------------------------------------------------------------------------
California Infrastructure & Econ. Dev. Bank
(J Paul Getty Trust) PUT 1.00% 5/13/2004 $5,000 $5,000
California Infrastructure & Econ. Dev. Bank
(J Paul Getty Trust) PUT 1.00% 5/13/2004 40,000 40,000
California Infrastructure & Econ. Dev. Bank Rev. VRDO 1.05% 12/1/2003(2) 15,750 15,750
California Public Works Board Lease Rev.
(California State Univ.) TOB VRDO 1.13% 12/8/2003(2)* 4,200 4,200
California State Dept. Water Resources
Power Supply Rev. TOB VRDO 1.13% 12/8/2003(10)* 26,340 26,340
California State Dept. Water Resources
Power Supply Rev. TOB VRDO 1.13% 12/8/2003(10)* 5,790 5,790
California State Dept. Water Resources
Power Supply Rev. VRDO 1.05% 12/1/2003 LOC 19,300 19,300
California State Dept. Water Resources
Power Supply Rev. VRDO 1.08% 12/1/2003 LOC 2,700 2,700
California State Dept. Water Resources
Power Supply Rev. VRDO 1.08% 12/1/2003 LOC 7,200 7,200
California State Dept. Water Resources
Power Supply Rev. VRDO 1.10% 12/1/2003 LOC 1,000 1,000
California State Dept. Water Resources
Power Supply Rev. VRDO 1.07% 12/8/2003 LOC 60,500 60,500
California State Dept. Water Resources
Power Supply Rev. VRDO 1.10% 12/8/2003 LOC 40,000 40,000
California State Dept. Water Resources
Power Supply Rev. VRDO 1.12% 12/8/2003 LOC 20,000 20,000
California State Dept. Water Resources
Power Supply Rev. VRDO 1.12% 12/8/2003 LOC 26,900 26,900
California Statewide Community Dev. Auth. Multifamily Rev.
(Canyon Creek Apartments) VRDO 1.13% 12/8/2003 LOC 28,800 28,800
California Statewide Community Dev. Auth. Multifamily Rev.
(Knoll Apartments) VRDO 1.14% 12/8/2003 LOC 12,715 12,715
California Statewide Community Dev. Auth. Multifamily Rev.
(Valley Palms Apartments) VRDO 1.14% 12/8/2003 LOC 13,500 13,500
California Statewide Community Dev. Auth. Multifamily Rev.
(Wilshire Court Apartments) PUT 0.95% 1/23/2004 32,500 32,500
California Statewide Community Dev. Auth. Rev.
(Children's Hosp. of Los Angeles) VRDO 1.04% 12/8/2003(2) 15,000 15,000
California Statewide Community Dev. Auth. Rev.
(Children's Hosp. of Los Angeles) VRDO 1.04% 12/8/2003 15,000 15,000
California Statewide Community Dev. Auth. Rev.
(Kaiser Permanente) VRDO 1.10% 12/8/2003 20,000 20,000
Clovis CA USD TRAN 1.50% 6/30/2004 20,000 20,069
Conejo Valley CA USD TRAN 1.75% 6/30/2004 16,500 16,580
Contra Costa CA Housing Finance Agency
Home Mortgage Rev. (Park Regency) VRDO 1.12% 12/8/2003 LOC 22,500 22,500
Contra Costa CA Water Dist. Rev. TOB VRDO 1.12% 12/8/2003(4)* 5,640 5,640
Dublin San Ramon Services Dist. California Sewer COP VRDO 1.10% 12/8/2003(1) 27,535 27,535
East Bay CA Muni. Util. Dist. WasteWater System Rev. VRDO 1.10% 12/8/2003(10) 15,000 15,000
East Bay CA Muni. Util. Dist. Water System Rev. CP 1.07% 3/8/2004 6,000 6,000
East Bay CA Muni. Util. Dist. Water System Rev. VRDO 1.10% 12/8/2003(4) 35,900 35,900
Fontana CA USD (School Fac. Bridge Funding Program)
COP VRDO 1.05% 12/8/2003(4) 9,740 9,740
21
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FACE MARKET
MATURITY AMOUNT VALUE*
CALIFORNIA TAX-EXEMPT MONEY MARKET FUND COUPON DATE (000) (000)
- -------------------------------------------------------------------------------------------------------------------------
Fresno CA Sewer Rev. VRDO 1.07% 12/8/2003(3) $27,750 $27,750
Irvine CA Assessment Dist. Improvement Bonds
(Oak Creek) VRDO 1.07% 12/1/2003 LOC 1,757 1,757
Irvine CA Assessment Dist. Improvement Bonds VRDO 1.05% 12/1/2003 LOC 4,300 4,300
Irvine CA Ranch Water Dist. Rev. VRDO 1.05% 12/1/2003 LOC 5,000 5,000
Irvine CA Ranch Water Dist. Rev. VRDO 1.05% 12/1/2003 LOC 12,500 12,500
Irvine CA Ranch Water Dist. Rev. VRDO 1.10% 12/1/2003 LOC 5,500 5,500
Irvine CA USD VRDO 1.05% 12/1/2003 LOC 18,000 18,000
Kern County CA (Public Fac.) VRDO 1.07% 12/8/2003 LOC 3,700 3,700
Kern County CA (Public Fac.) VRDO 1.07% 12/8/2003 LOC 2,800 2,800
Kern County CA (Public Fac.) VRDO 1.07% 12/8/2003 LOC 3,400 3,400
Kern County CA (Public Fac.) VRDO 1.07% 12/8/2003 LOC 7,700 7,700
Koch Industries California TOB VRDO 1.15% 12/8/2003(2)* 31,942 31,942
Long Beach CA Harbor Rev. TOB VRDO 1.13% 12/8/2003(1)* 7,345 7,345
Long Beach CA Harbor Rev. TOB VRDO 1.16% 12/8/2003(3)* 6,710 6,710
Long Beach CA Water Rev. CP 1.00% 12/11/2003 6,000 6,000
Los Angeles CA Community Redev. Agency Multifamily
Housing Rev. (Metropolitan Lofts Apartments) VRDO 1.18% 12/8/2003 LOC 17,750 17,750
Los Angeles CA Convention & Exhibit Center Auth.
Lease Rev. PUT 0.97% 6/16/2004(2) 15,775 15,775
Los Angeles CA Dept. of Airports International Airport Rev. PUT 1.15% 11/15/2004 LOC 14,000 14,000
Los Angeles CA Dept. of Airports International Airport Rev. PUT 1.15% 11/15/2004 LOC 10,000 10,000
Los Angeles CA Dept. of Airports International Airport Rev. PUT 1.15% 11/15/2004 LOC 14,000 14,000
Los Angeles CA Dept. of Water & Power Rev. TOB VRDO 1.13% 12/8/2003(1)* 8,350 8,350
Los Angeles CA Dept. of Water & Power Rev. VRDO 1.11% 12/1/2003 200 200
Los Angeles CA Dept. of Water & Power Rev. VRDO 1.05% 12/8/2003 20,100 20,100
Los Angeles CA Dept. of Water & Power Rev. VRDO 1.05% 12/8/2003 26,000 26,000
Los Angeles CA Dept. of Water & Power Rev. VRDO 1.08% 12/8/2003 15,950 15,950
Los Angeles CA Dept. of Water & Power Rev. VRDO 1.08% 12/8/2003 18,400 18,400
Los Angeles CA Dept. of Water & Power Rev. VRDO 1.08% 12/8/2003 23,400 23,400
Los Angeles CA Dept. of Water & Power Rev. VRDO 1.10% 12/8/2003 15,300 15,300
Los Angeles CA Dept. of Water & Power Rev. VRDO 1.10% 12/8/2003 28,330 28,330
Los Angeles CA Dept. of Water & Power Rev. VRDO 1.10% 12/8/2003 47,300 47,300
Los Angeles CA Harbor Dept. CP 0.93% 12/11/2003 10,513 10,513
Los Angeles CA Harbor Dept. CP 0.85% 12/18/2003 27,140 27,140
Los Angeles CA Harbor Dept. CP 1.05% 3/9/2004 10,000 10,000
Los Angeles CA Multifamily Housing Rev. (San Regis) VRDO 1.14% 12/8/2003 LOC 23,600 23,600
Los Angeles CA TRAN 2.00% 6/30/2004 50,000 50,276
Los Angeles CA USD GO TOB VRDO 1.12% 12/8/2003(3)* 11,120 11,120
Los Angeles CA USD GO TOB VRDO 1.12% 12/8/2003(1)* 5,420 5,420
Los Angeles CA USD GO TOB VRDO 1.12% 12/8/2003(3)* 19,725 19,725
Los Angeles CA USD GO TOB VRDO 1.13% 12/8/2003(4)* 6,525 6,525
Los Angeles CA USD GO TOB VRDO 1.13% 12/8/2003(1)* 4,900 4,900
Los Angeles CA USD GO TOB VRDO 1.14% 12/8/2003(3)* 8,200 8,200
Los Angeles CA USD GO TOB VRDO 1.14% 12/8/2003(3)* 16,660 16,660
Los Angeles CA USD TRAN 2.00% 7/1/2004 123,000 123,683
Los Angeles CA Wastewater System Rev. PUT 1.25% 12/5/2003(3) 20,000 20,000
Los Angeles CA Wastewater System Rev. PUT 1.25% 12/5/2003(3) 10,000 10,000
22
- -------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
CALIFORNIA TAX-EXEMPT MONEY MARKET FUND COUPON DATE (000) (000)
- -------------------------------------------------------------------------------------------------------------------------
Los Angeles CA Wastewater System Rev. PUT 1.25% 12/5/2003(3) $15,000 $15,000
Los Angeles CA Wastewater System Rev. TOB VRDO 1.13% 12/8/2003(4)* 5,245 5,245
Los Angeles County CA Metro. Transp.
Auth. Sales Tax Rev. CP 0.90% 12/9/2003 LOC 14,764 14,764
Los Angeles County CA Metro. Transp.
Auth. Sales Tax Rev. TOB VRDO 1.13% 12/8/2003(1)* 10,000 10,000
Los Angeles County CA Metro. Transp.
Auth. Sales Tax Rev. VRDO 1.04% 12/8/2003(3) 43,100 43,100
Los Angeles County CA Metro. Transp.
Auth. Sales Tax Rev. VRDO 1.08% 12/8/2003(1) 73,985 73,985
Los Angeles County CA Pension Obligations VRDO 1.04% 12/8/2003(2) 35,480 35,480
Los Angeles County CA Pension Obligations VRDO 1.05% 12/8/2003(2) 16,100 16,100
Los Angeles County CA Schools Pooled
Financing Program TRAN 1.75% 6/30/2004(4) 17,000 17,081
Los Angeles County CA TRAN 2.00% 6/30/2004 75,000 75,427
Metro. Water Dist. of Southern California Rev. TOB VRDO 1.10% 12/8/2003* 5,668 5,668
Metro. Water Dist. of Southern California Rev. TOB VRDO 1.11% 12/8/2003* 5,000 5,000
Metro. Water Dist. of Southern California Rev. TOB VRDO 1.15% 12/8/2003* 14,995 14,995
Metro. Water Dist. of Southern California Rev. VRDO 1.05% 12/1/2003 8,700 8,700
Metro. Water Dist. of Southern California Rev. VRDO 1.05% 12/8/2003 30,100 30,100
Metro. Water Dist. of Southern California Rev. VRDO 1.05% 12/8/2003 18,300 18,300
Metro. Water Dist. of Southern California Rev. VRDO 1.05% 12/8/2003 19,000 19,000
Metro. Water Dist. of Southern California Rev. VRDO 1.07% 12/8/2003 19,300 19,300
Metro. Water Dist. of Southern California Rev. VRDO 1.07% 12/8/2003 9,900 9,900
Metro. Water Dist. of Southern California Rev. VRDO 1.10% 12/8/2003 7,900 7,900
Metro. Water Dist. of Southern California Rev. VRDO 1.10% 12/8/2003 4,800 4,800
Mission Viejo CA Community Dev. Financing Auth.
(Mission Viejo Mall Improvement) VRDO 1.08% 12/8/2003 LOC 30,200 30,200
MSR California Public Power Agency
(San Juan Project) VRDO 1.07% 12/1/2003(1) 12,250 12,250
Mt. Diablo CA USD TRAN 2.00%11/17/2004 22,000 22,197
Newport Beach CA Rev. (Hoag Memorial Hosp.) VRDO 1.02% 12/1/2003 25,220 25,220
Newport Beach CA Rev. (Hoag Memorial Hosp.) VRDO 1.12% 12/1/2003 4,000 4,000
Newport Beach CA Rev. (Hoag Memorial Hosp.) VRDO 1.12% 12/1/2003 3,000 3,000
Newport Beach CA Rev. (Hoag Memorial Hosp.) VRDO 1.12% 12/8/2003 25,000 25,000
Newport Beach CA Rev. (Hoag Memorial Hosp.) VRDO 1.12% 12/8/2003 10,200 10,200
Northern California Power Agency
(Hydroelectric Project) VRDO 1.07% 12/8/2003(1) 34,250 34,250
Oceanside CA Multifamily Housing Rev.
(Lakeridge Apartments) VRDO 1.08% 12/8/2003 LOC 36,940 36,940
Orange County CA Apartment Dev. Rev. VRDO 1.08% 12/8/2003 LOC 58,200 58,200
Orange County CA Sanitation Dist. COP VRDO 1.07% 12/1/2003 230 230
Orange County CA Sanitation Dist. COP VRDO 1.07% 12/1/2003 3,075 3,075
Orange County CA Sanitation Dist. COP VRDO 1.08% 12/8/2003(2) 37,805 37,805
Orange County CA Water Dist. COP VRDO 1.05% 12/8/2003 25,000 25,000
Otay CA Water Dist. (Capital Project) COP VRDO 1.08% 12/8/2003 LOC 10,300 10,300
Pasadena CA COP
(City Hall & Park Improvement Project) VRDO 1.08% 12/8/2003(2) 10,000 10,000
Port of Oakland CA CP 0.90% 12/9/2003 LOC 13,000 13,000
Port of Oakland CA CP 0.93% 12/9/2003 LOC 6,000 6,000
Port of Oakland CA Rev. TOB VRDO 1.13% 12/8/2003(3)* 3,802 3,802
23
- -------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
CALIFORNIA TAX-EXEMPT MONEY MARKET FUND COUPON DATE (000) (000)
- -------------------------------------------------------------------------------------------------------------------------
Port of Oakland CA Rev. TOB VRDO 1.16% 12/8/2003(3)* $24,600 $24,600
Riverside County CA Single Family Mortgage Rev. TOB VRDO 1.16% 12/8/2003* 3,480 3,480
Sacramento CA Muni. Util. Dist. Rev. TOB VRDO 1.13% 12/8/2(1)* 9,900 9,900
Sacramento County CA
(Administration Center & Courthouse) VRDO 1.12%1 2/8/2003 LOC 9,600 9,600
Sacramento County CA Single Family
Mortgage Rev. TOB VRDO 1.16% 12/8/2003* 8,470 8,470
San Bernardino County CA Medical Center COP VRDO 1.07% 12/8/2003(1) 36,365 36,365
San Bernardino County CA USD COP TOB VRDO 1.08% 12/8/2003(4) 25,100 25,100
San Diego CA Community College Dist. GO TOB VRDO 1.12% 12/8/2003(4)* 10,350 10,350
San Diego CA County & School Dist. TRAN 1.75% 6/30/2004 51,000 51,211
San Diego CA Housing Auth. Multifamily Housing Rev.
(Broadway Square) PUT 1.15% 11/15/2004 29,500 29,500
San Diego CA Housing Auth. Multifamily Housing Rev.
(Canyon Rim Apartments) VRDO 1.14% 12/8/2003 LOC 32,440 32,440
San Diego CA USD TOB VRDO 1.12% 12/8/2003(3)* 5,635 5,635
San Diego CA USD TRAN 2.00% 6/30/2004 38,300 38,542
San Diego County CA Teeter Obligation CP 1.05% 2/11/2004 LOC 18,700 18,700
San Diego County CA Water Auth. CP 0.96% 1/27/2004 11,500 11,500
San Francisco CA Bay Area Rapid Transit Dist.
Sales Tax Rev. TOB VRDO 1.12% 12/8/2003(3)* 2,745 2,745
San Francisco CA City & County Finance Corp. Lease Rev.
(Moscone Center Expansion) VRDO 1.05% 12/8/2003(2) 26,300 26,300
San Francisco CA City & County Finance Corp. Lease Rev.
(Moscone Center Expansion) VRDO 1.05% 12/8/2003(2) 27,300 27,300
San Francisco CA City & County International Airport Rev.
TOB VRDO 1.14% 12/8/2003(3)* 5,100 5,100
San Francisco CA City & County Multifamily Housing Rev.
(City Heights Apartments) VRDO 1.13% 12/8/2003 LOC 4,000 4,000
San Jose CA Redev. Agency VRDO 1.04% 12/8/2003 LOC 14,900 14,900
San Jose/Santa Clara CA Clean Water &
Sewer Finance Auth. VRDO 1.04% 12/8/2003(3) 3,700 3,700
Santa Clara Valley CA Transp. Auth.
Bond and Grant Anticipation Notes 3.00% 12/4/2003 17,228 17,225
South Coast CA Local Education Agencies TRAN 2.00% 6/30/2004 20,000 20,123
Southern California Home Financing Auth.
Single Family Mortgage Rev. TOB VRDO 1.21% 12/8/2003* 66,990 66,990
Southern California Home Financing Auth.
Single Family Mortgage Rev. TOB VRDO 1.21% 12/8/2003* 34,035 34,035
Southern California Public Power Auth. Rev.
(Palo Verde Project) VRDO 1.05% 12/8/2003(2) 30,870 30,870
Southern California Public Power Auth. Rev.
(Transmission Project) VRDO 1.05% 12/8/2003(2)LOC 21,000 21,000
Southern California Public Power Auth. Rev.
(Transmission Project) VRDO 1.07% 12/8/2003(4) 52,650 52,650
Southern California Public Power Auth. Rev.
(Transmission Project) VRDO 1.10% 12/8/2003(4) 65,465 65,465
Torrance CA Hospital Rev.
(Torrance Memorial Medical Center) VRDO 1.12% 12/8/2003 LOC 3,000 3,000
Univ. of California Regents CP 0.90% 12/1/2003 12,700 12,700
Univ. of California Regents CP 0.90% 12/11/2003 6,000 6,000
Univ. of California Regents CP 1.08% 12/15/2003 16,100 16,100
24
- -------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
CALIFORNIA TAX-EXEMPT MONEY MARKET FUND COUPON DATE (000) (000)
- -------------------------------------------------------------------------------------------------------------------------
Univ. of California Regents CP 0.85% 1/14/2004 $5,000 $5,000
Univ. of California Regents CP 1.03% 3/8/2004 15,500 15,500
Univ. of California Regents CP 1.00% 3/9/2004 10,400 10,400
Univ. of California Rev. TOB VRDO 1.13% 12/8/2003(4)* 2,665 2,665
Vernon CA Electric System Rev. (Malburg Project) VRDO 1.10% 12/8/2003 LOC 18,750 18,750
Wateruse Financial Auth. of California VRDO 1.12% 12/8/2003(4) 61,075 61,075
OUTSIDE CALIFORNIA:
Puerto Rico Electric Power Auth. Rev. TOB VRDO 1.13% 12/8/2003(1)* 3,000 3,000
Puerto Rico GO TOB PUT 1.00% 6/17/2004(3)* 14,655 14,655
Puerto Rico GO TOB VRDO 1.10% 12/8/2003(1)* 24,995 24,995
Puerto Rico GO TOB VRDO 1.10% 12/8/2003(4)* 16,680 16,680
Puerto Rico Highway & Transp. Auth.Rev. VRDO 1.07% 12/8/2003(2) 9,100 9,100
Puerto Rico Infrastructure Financing Auth.
Special Obligation Bonds TOB PUT 0.95% 6/17/2004* 20,700 20,700
Puerto Rico Public Buildings Auth.
Govt. Fac. Rev. TOB VRDO 1.10% 12/8/2003(10)* 11,430 11,430
Puerto Rico Public Finance Corp. TOB VRDO 1.10% 12/8/2003(1)* 7,605 7,605
- -------------------------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost $3,938,553) 3,938,553
- -------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (0.7%)
- -------------------------------------------------------------------------------------------------------------------------
Other Assets--Note B 38,655
Liabilities (10,474)
-----------
28,181
-----------
- -------------------------------------------------------------------------------------------------------------------------
NET ASSETS (100%)
- -------------------------------------------------------------------------------------------------------------------------
Applicable to 3,966,607,605 outstanding $.001 par value shares of beneficial interest
(unlimited authorization) $3,966,734
=========================================================================================================================
NET ASSET VALUE PER SHARE $1.00
=========================================================================================================================
*See Note A in NOTES TO FINANCIAL STATEMENTS.
*Securities exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be sold in transactions exempt from registration,
normally to qualified institutional buyers. At November 30, 2003, the aggregate
value of these securities was $718,691,000, representing 18.1% of net assets.
For key to abbreviations and other references, see page 49.
- --------------------------------------------------------------------------------
AT NOVEMBER 30, 2003, NET ASSETS CONSISTED OF:
- --------------------------------------------------------------------------------
AMOUNT PER
(000) SHARE
- --------------------------------------------------------------------------------
Paid-in Capital $3,966,734 $1.00
Undistributed Net INvestment Income -- --
Accumulated Net Realized Gains -- --
Unrealized Appreciation -- --
- --------------------------------------------------------------------------------
NET ASSETS $3,966,734 $1.00
================================================================================
25
- ----------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
CALIFORNIA INTERMEDIATE-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS (100.2%)
- ----------------------------------------------------------------------------------------------------------------------------
ABAG Finance Auth. for Non-Profit Corp. California
(Children's Hosp. Medical Center) COP 6.00% 12/1/2015 (2) $9,180 $10,669
Alameda CA Corridor Transp. Auth. Rev. 5.125% 10/1/2014 (1) 10,150 11,127
Alameda County CA (Medical Center) COP 5.25% 6/1/2008 (1)(ETM) 1,965 2,222
Alameda County CA (Medical Center) COP 5.25% 6/1/2009 (1)(ETM) 2,910 3,316
Alameda County CA (Medical Center) COP 5.25% 6/1/2012 (1)(ETM) 1,595 1,781
Alameda County CA (Medical Center) COP 5.25% 6/1/2013 (1)(ETM) 1,785 1,994
Alameda County CA (Medical Center) COP 5.375% 6/1/2014 (1)(ETM) 1,880 2,119
Alameda County CA (Medical Center) COP 5.375% 6/1/2015 (1)(ETM) 3,960 4,456
Alameda County CA COP 5.375% 12/1/2010 (1) 2,000 2,307
Alameda County CA COP 5.375% 12/1/2012 (1) 11,000 12,499
Alameda County CA COP 5.375% 12/1/2013 (1) 13,930 15,692
Alameda County CA COP 5.375% 12/1/2014 (1) 4,790 5,356
Alameda County CA COP 5.375% 12/1/2015 (1) 1,500 1,672
Anaheim CA Convention Center COP 0.00% 8/1/2004 (1) 3,120 3,093
Anaheim CA Public Finance Auth. Electric System Rev. 5.25% 10/1/2014 (4) 2,330 2,595
Anaheim CA Public Finance Auth. Electric System Rev. 5.00% 10/1/2015 (4) 4,010 4,356
Anaheim CA Public Finance Auth. Electric System Rev. 5.00% 10/1/2016 (1) 1,915 2,078
Anaheim CA Public Finance Auth. Electric System Rev. 5.00% 10/1/2016 (4) 5,000 5,388
Anaheim CA Public Finance Auth. Electric System Rev. 5.25% 10/1/2017 (4) 2,750 3,008
Anaheim CA Union High School Dist. GO 5.00% 8/1/2014 (4) 1,625 1,775
Anaheim CA Union High School Dist. GO 5.375% 8/1/2015 (4) 1,000 1,117
Anaheim CA Union High School Dist. GO 5.375% 8/1/2016 (4) 1,250 1,387
Anaheim CA Union High School Dist. GO 5.375% 8/1/2017 (4) 2,235 2,465
Antioch CA Public Finance Auth. Reassessment Rev. 5.00% 9/2/2013 (2) 11,790 12,754
Burbank CA Public Finance Auth. 5.25% 12/1/2012 (2) 3,540 4,022
Burbank CA Public Finance Auth. 5.25% 12/1/2013 (2) 4,615 5,243
Cabrillo CA Community College Dist. Rev. 0.00% 8/1/2011 (3) 2,465 1,865
Cabrillo CA Community College Dist. Rev. 0.00% 8/1/2012 (3) 2,525 1,796
Cabrillo CA Community College Dist. Rev. 0.00% 8/1/2013 (3) 2,590 1,742
Cabrillo CA Community College Dist. Rev. 0.00% 8/1/2014 (3) 2,655 1,686
California Dept. of Veteran Affairs Rev. 4.95% 12/1/2012 3,620 3,773
California Dept. of Veteran Affairs Rev. 5.05% 12/1/2013 6,140 6,394
California Dept. of Water Resources Water System Rev. (Central Valley) 5.00% 12/1/2012 (3) 3,640 4,066
California Educ. Fac. Auth. Rev. (College of Arts & Crafts) 6.875% 6/1/2014 360 426
California Educ. Fac. Auth. Rev. (College of Arts & Crafts) 6.875% 6/1/2015 380 451
California Educ. Fac. Auth. Rev. (College of Arts & Crafts) 6.875% 6/1/2016 400 475
California Educ. Fac. Auth. Rev. (Univ. of Southern California) 5.60% 10/1/2009 2,680 3,065
California GO 5.25% 10/1/2009 1,835 2,027
California GO 5.75% 12/1/2009 (3) 11,765 13,770
California GO 5.75% 2/1/2011 (3) 6,500 7,525
California GO 5.40% 12/1/2014 (1) 3,130 3,309
California GO 5.375% 4/1/2015 7,095 7,614
California GO VRDO 1.05% 12/1/2003 LOC 24,400 24,400
California Health Fac. Finance Auth. Rev. (Adventist Health System) 5.00% 3/1/2016 2,170 2,196
California Health Fac. Finance Auth. Rev. (Adventist Health System) 5.00% 3/1/2019 1,025 1,012
26
- -------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
CALIFORNIA INTERMEDIATE-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- -------------------------------------------------------------------------------------------------------------------------
California Health Fac. Finance Auth. Rev. (Catholic Healthcare West) 7.00% 7/1/2005 (2) 3,410 3,714
California Health Fac. Finance Auth. Rev. (Catholic Healthcare West) 7.00% 7/1/2006 (2) 3,395 3,853
California Health Fac. Finance Auth. Rev. (Catholic Healthcare West) 5.50% 7/1/2008 (1) 3,290 3,709
California Health Fac. Finance Auth. Rev. (Catholic Healthcare West) 5.50% 7/1/2009 (1) 3,580 4,048
California Health Fac. Finance Auth. Rev. (Catholic Healthcare West) 5.875% 7/1/2009 (2) 5,000 5,439
California Health Fac. Finance Auth. Rev. (Catholic Healthcare West) 5.50% 7/1/2010 (1) 3,060 3,463
California Health Fac. Finance Auth. Rev. (Catholic Healthcare West) 5.75% 7/1/2010 (1) 7,000 7,813
California Health Fac. Finance Auth. Rev. (Catholic Healthcare West) 5.50% 7/1/2011 (1) 3,950 4,421
California Health Fac. Finance Auth. Rev. (Catholic Healthcare West) 5.50% 7/1/2012 (1) 3,635 4,053
California Health Fac. Finance Auth. Rev. (Children's Hosp.) 6.00% 7/1/2004 (1) 1,645 1,692
California Health Fac. Finance Auth. Rev. (Children's Hosp.) 6.00% 7/1/2006 (1) 1,000 1,110
California Health Fac. Finance Auth. Rev. (Kaiser Permanente) 5.25% 6/1/2009 (4) 6,290 7,101
California Health Fac. Finance Auth. Rev. (Kaiser Permanente) 0.00% 10/1/2009 (1) 7,140 6,005
California Health Fac. Finance Auth. Rev. (Kaiser Permanente) 5.25% 10/1/2009 (2) 10,525 11,861
California Health Fac. Finance Auth. Rev. (Kaiser Permanente) 5.25% 6/1/2010 (4) 5,310 5,917
California Health Fac. Finance Auth. Rev. (Kaiser Permanente) 5.25% 6/1/2011 (4) 7,250 7,990
California Health Fac. Finance Auth. Rev. (Kaiser Permanente) 5.25% 10/1/2016 5,000 5,215
California Health Fac. Finance Auth. Rev. (Lucile Salter Packard Hosp.) 5.00% 8/15/2014 (2) 2,280 2,497
California Health Fac. Finance Auth. Rev. (Lucile Salter Packard Hosp.) 5.00% 8/15/2015 (2) 2,245 2,439
California Health Fac. Finance Auth. Rev. (Lucile Salter Packard Hosp.) 5.00% 8/15/2016 (2) 2,515 2,709
California Health Fac. Finance Auth. Rev. (Lucile Salter Packard Hosp.) 5.00% 8/15/2017 (2) 2,630 2,811
California Health Fac. Finance Auth. Rev. (Pomona Valley Hosp.) 5.50% 7/1/2004 (1) 2,000 2,051
California Health Fac. Finance Auth. Rev. (Pomona Valley Hosp.) 5.75% 7/1/2005 (1) 3,335 3,570
California Health Fac. Finance Auth. Rev. (Pomona Valley Hosp.) 5.75% 7/1/2006 (1) 2,415 2,668
California Health Fac. Finance Auth. Rev. (Pomona Valley Hosp.) 5.50% 7/1/2010 (1) 3,570 4,041
California Health Fac. Finance Auth. Rev. (Presbyterian Hosp.) 5.50% 5/1/2004 (1) 1,855 1,889
California Health Fac. Finance Auth. Rev. (Sisters of Providence) 6.00% 10/1/2009 (2) 4,490 5,292
California Health Fac. Finance Auth. Rev. (Stanford Hosp.) 5.00% 11/15/2014 2,715 2,881
California Health Fac. Finance Auth. Rev. (Stanford Hosp.) 5.00% 11/15/2015 3,000 3,156
California Health Fac. Finance Auth. Rev. (Stanford Hosp.) 5.00% 11/15/2016 6,275 6,550
California Health Fac. Finance Auth. Rev. (Summit Medical Center) 5.25% 5/1/2009 (4) 3,500 3,848
27
- -------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
CALIFORNIA INTERMEDIATE-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- -------------------------------------------------------------------------------------------------------------------------
California Health Fac. Finance Auth. Rev. (Summit Medical Center) 5.25% 5/1/2011 (4) $1,700 $1,863
California Health Fac. Finance Auth. Rev. (Sutter Health) 5.50% 8/15/2012 (4) 3,000 3,347
California Health Fac. Finance Auth. Rev. (Sutter Health) 5.50% 8/15/2012 (4) 5,410 6,035
California Housing Finance Agency Home Mortgage Rev. 5.85% 8/1/2016 (1) 3,950 4,159
California Housing Finance Agency Home Mortgage Rev. 6.25% 8/1/2016 10,500 11,043
California Housing Finance Agency Home Mortgage Rev. 0.00% 8/1/2027 (1) 3,470 954
California Housing Finance Agency Home Mortgage Rev.
(Multi-Family Housing III) VRDO 1.10% 12/1/2003 7,400 7,400
California Housing Finance Agency Home Mortgage Rev. VRDO 1.04% 12/1/2003 (1) 790 790
California Housing Finance Agency Home Mortgage Rev. VRDO 1.05% 12/1/2003 LOC 23,735 23,735
California Housing Finance Agency Home Mortgage Rev. VRDO 1.05% 12/1/2003 10,000 10,000
California Housing Finance Agency Home Mortgage Rev. VRDO 1.08% 12/1/2003 (2) 1,600 1,600
California Housing Finance Agency Home Mortgage Rev. VRDO 1.15% 12/1/2003 (4) 3,500 3,500
California Infrastructure & Econ. Dev. Bank Rev. (Asian Art Museum) 5.50% 6/1/2012 (1) 1,300 1,463
California Infrastructure & Econ. Dev. Bank Rev. (Asian Art Museum) 5.50% 6/1/2014 (1) 2,935 3,295
California Infrastructure & Econ. Dev. Bank Rev. (Asian Art Museum) 5.50% 6/1/2015 (1) 2,245 2,520
California Infrastructure & Econ. Dev. Bank Rev.
(Clean Water State Revolving Fund) 5.00% 10/1/2014 2,500 2,743
California Infrastructure & Econ. Dev. Bank Rev.
(Clean Water State Revolving Fund) 5.00% 10/1/2015 3,500 3,813
California Infrastructure & Econ. Dev. Bank Rev.
(Clean Water State Revolving Fund) 5.00% 10/1/2016 4,500 4,863
California Infrastructure & Econ. Dev. Bank Rev.
(J. David Gladstone Institute) 5.00% 10/1/2010 1,325 1,463
California Infrastructure & Econ. Dev. Bank Rev.
(J. David Gladstone Institute) 5.00% 10/1/2011 1,275 1,395
California Infrastructure & Econ. Dev. Bank Rev.
(J. David Gladstone Institute) 5.00% 10/1/2012 2,950 3,191
California Infrastructure & Econ. Dev. Bank Rev.
(J. David Gladstone Institute) 5.00% 10/1/2013 2,350 2,517
California Infrastructure & Econ. Dev. Bank Rev.
(J. David Gladstone Institute) 5.50% 10/1/2014 2,250 2,469
California Infrastructure & Econ. Dev. Bank Rev.
(J. David Gladstone Institute) 5.50% 10/1/2015 2,430 2,658
California Infrastructure & Econ. Dev. Bank Rev.
(J. David Gladstone Institute) 5.50% 10/1/2016 3,620 3,940
California Infrastructure & Econ. Dev. Bank Rev.
(J. David Gladstone Institute) 5.50% 10/1/2017 3,820 4,134
California PCR Financing Auth. Rev. (San Diego Gas & Electric) 5.90% 6/1/2014 (1) 17,135 20,343
California Pollution Control Financing Auth. Solid Waste
Disposal Rev. (Republic Services) PUT 2.00% 12/1/2004 4,000 4,001
28
- -------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
CALIFORNIA INTERMEDIATE-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- -------------------------------------------------------------------------------------------------------------------------
California Pollution Control Financing Auth. Solid Waste
Disposal Rev. (Republic Services) PUT 5.25% 12/1/2017 $5,000 $5,125
California Pollution Control Financing Auth. Solid Waste
Disposal Rev. (Republic Services) PUT 5.25% 12/1/2017 5,000 5,084
California Public Works Board Lease Rev. (California State Univ.) 5.30% 10/1/2015 (2) 6,655 7,293
California Public Works Board Lease Rev. (Dept. of Corrections) 5.00% 6/1/2006 + 8,445 9,010
California Public Works Board Lease Rev. (Dept. of Corrections) 5.00% 6/1/2007 + 3,600 3,880
California Public Works Board Lease Rev. (Dept. of Corrections) 5.00% 6/1/2008 + 7,085 7,678
California Public Works Board Lease Rev. (Dept. of Corrections) 5.00% 6/1/2009 + 9,000 9,777
California Public Works Board Lease Rev. (Dept. of Corrections) 5.50% 1/1/2010 (2) 10,000 10,953
California Public Works Board Lease Rev. (Dept. of Corrections) 5.25% 6/1/2011 (2) 5,050 5,709
California Public Works Board Lease Rev. (Dept. of Corrections) 5.50% 1/1/2014 (2) 5,975 6,546
California Public Works Board Lease Rev. (Dept. of Corrections) 5.375% 11/1/2014 (1) 4,400 4,906
California Public Works Board Lease Rev. (Secretary of State) 6.50% 12/1/2008 (2) 5,000 5,961
California Public Works Board Lease Rev. (Univ. of California) 5.50% 9/1/2008 (2) 5,185 5,867
California Public Works Board Lease Rev. (Univ. of California) 5.50% 9/1/2009 (2) 4,015 4,496
California Public Works Board Lease Rev. (Univ. of California) 5.375% 10/1/2016 (1) 4,750 5,220
California State Dept. Water Resources Power Supply Rev. 5.50% 5/1/2009 10,000 11,156
California State Dept. Water Resources Power Supply Rev. 5.50% 5/1/2010 3,500 3,904
California State Dept. Water Resources Power Supply Rev. 5.50% 5/1/2011 7,000 7,807
California State Dept. Water Resources Power Supply Rev. VRDO 1.08% 12/1/2003 LOC 10,300 10,300
California State Dept. Water Resources Power Supply Rev. VRDO 1.10% 12/1/2003 LOC 6,200 6,200
California State Dept. Water Resources Power Supply Rev. VRDO 1.12% 12/8/2003 LOC 16,100 16,100
California State Univ. Rev. 5.375% 11/1/2014 (3) 5,390 6,089
California Statewide Community Dev. Auth. Multifamily
Rev. (Archstone/Seascape) PUT 5.25% 6/1/2008 2,000 2,131
California Statewide Community Dev. Auth. Rev. (Catholic Healthcare West) 6.00% 7/1/2009 2,695 3,010
California Statewide Community Dev. Auth. Rev.
(Children's Hosp. of Los Angeles) COP 6.00% 6/1/2008 (1) 1,000 1,154
California Statewide Community Dev. Auth. Rev.
(Children's Hosp. of Los Angeles) COP 6.00% 6/1/2009 (1) 3,615 4,224
California Statewide Community Dev. Auth. Rev.
(Children's Hosp. of Los Angeles) COP 6.00% 6/1/2011 (1) 2,365 2,777
California Statewide Community Dev. Auth. Rev.
(Irvine Apartments) PUT 4.90% 5/15/2008 1,440 1,536
29
- --------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
CALIFORNIA INTERMEDIATE-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- --------------------------------------------------------------------------------------------------------------------------
California Statewide Community Dev. Auth. Rev. (Irvine Apartments) PUT 5.05% 5/15/2008 $2,500 $2,660
California Statewide Community Dev. Auth. Rev. (Irvine Apartments) PUT 5.25% 5/15/2013 5,545 5,761
California Statewide Community Dev. Auth. Rev. (Kaiser Permanente) PUT 3.85% 8/1/2006 35,390 36,662
California Statewide Community Dev. Auth. Rev.
(Los Angeles Orthopaedic Hosp. Foundation) 5.125% 6/1/2013 (2) 1,530 1,656
California Statewide Community Dev. Auth. Rev.
(Los Angeles Orthopaedic Hosp. Foundation) 5.25% 6/1/2014 (2) 1,610 1,755
California Statewide Community Dev. Auth. Rev. (Memorial Health Services) 6.00% 10/1/2013 6,920 7,783
California Statewide Community Dev. Auth. Rev. (Memorial Health Services) 6.00% 10/1/2014 5,335 5,944
California Statewide Community Dev. Auth. Rev. (Memorial Health Services) 6.00% 10/1/2015 7,780 8,605
California Statewide Community Dev. Auth. Rev. (Republic Services Inc.) 4.95% 12/1/2012 9,000 8,916
California Statewide Community Dev. Auth. Rev. (Sherman Oaks Foundation) 5.50% 8/1/2015 (2) 4,685 5,254
California Statewide Community Dev. Auth. Rev. (Waste Management Inc.) PUT 4.95% 4/1/2004 4,500 4,534
California Veterans GO 5.15% 12/1/2009 11,000 11,003
California Veterans GO 4.85% 12/1/2011 1,750 1,837
California Veterans GO 5.40% 12/1/2014 5,000 5,229
Capistrano CA Unified Public Schools Rev. 6.00% 9/1/2004 (2) 2,160 2,239
Capistrano CA Unified Public Schools Rev. 6.00% 9/1/2005 (2) 2,395 2,591
Chino Basin CA Regional Financing Auth. Rev .
(Muni. Water Dist. Sewer System) 6.50% 8/1/2010 (2) 3,095 3,742
Chula Vista CA IDR (San Diego Gas & Electric) PUT 7.00% 12/1/2005 30,000 32,745
Clovis CA USD GO 0.00% 8/1/2004 (3)(ETM) 5,000 4,960
Clovis CA USD GO 0.00% 8/1/2005 (3)(ETM) 5,000 4,886
Clovis CA USD GO 0.00% 8/1/2011 (3) 2,675 2,024
Clovis CA USD GO 0.00% 8/1/2012 (3) 4,715 3,355
Coast CA Community College Dist. GO 5.00% 8/1/2016 (1) 4,060 4,400
Compton CA USD GO 5.25% 9/1/2015 (1) 1,295 1,447
Compton CA USD GO 5.25% 9/1/2016 (1) 1,460 1,620
Compton CA USD GO 5.25% 9/1/2017 (1) 1,645 1,812
Contra Costa CA (Merrithew Memorial Hosp.) COP 6.00% 11/1/2007 (1) 2,000 2,302
Contra Costa CA Water Dist. Rev. 5.00% 10/1/2017 (4) 7,015 7,506
Culver City CA Redev. Financing Auth. 5.375% 11/1/2016 (4) 3,260 3,625
East Bay CA Muni. Util. Dist. Water System Rev. 5.00% 6/1/2014 (3) 2,575 2,790
East Whittier CA City School Dist. GO 5.75% 8/1/2017 (3) 1,670 1,962
El Dorado County CA Public Agency Finance Auth. Rev. 5.60% 2/15/2012 (3) 3,900 4,287
El Dorado County CA Public Agency Finance Auth. Rev. 5.50% 2/15/2021 (3) 2,420 2,653
Elsinore Valley CA Muni. Water Dist. COP 6.00% 7/1/2012 (3) 1,000 1,183
Foothill/Eastern Corridor Agency California Toll Road Rev. 5.25% 1/15/2013 (1)* 5,000 5,508
Foothill/Eastern Corridor Agency California Toll Road Rev. 5.375% 1/15/2015 (1)* 5,000 5,542
Foothill-De Anza CA Community College Dist. GO 6.00% 8/1/2010 (Prere.) 1,150 1,380
Foothill-De Anza CA Community College Dist. GO 6.00% 8/1/2010 (Prere.) 1,235 1,482
Foothill-De Anza CA Community College Dist. GO 6.00% 8/1/2011 1,330 1,562
30
- -------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
CALIFORNIA INTERMEDIATE-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- -------------------------------------------------------------------------------------------------------------------------
Foothill-De Anza CA Community College Dist. GO 5.00% 8/1/2014 (3) $2,090 $2,283
Fresno CA Airport Rev. 6.00% 7/1/2013 (4) 2,975 3,376
Fresno CA Airport Rev. 6.00% 7/1/2015 (4) 2,290 2,595
Glendale CA School Dist. GO 5.75% 9/1/2017 (3) 3,790 4,344
Golden State Tobacco Securitization Corp. California 5.50% 6/1/2007 22,000 22,772
Imperial Irrigation Dist. of California (Electric System) COP 5.20% 11/1/2009 (1) 7,900 9,033
Intermodal Container Transfer Fac. Joint Power Auth. California Rev. 5.00% 11/1/2010 (2) 1,470 1,665
Intermodal Container Transfer Fac. Joint Power Auth. California Rev. 5.00% 11/1/2011 (2) 1,665 1,873
Intermodal Container Transfer Fac. Joint Power Auth. California Rev. 5.125% 11/1/2012 (2) 2,540 2,860
Intermodal Container Transfer Fac. Joint Power Auth. California Rev. 5.125% 11/1/2013 (2) 1,870 2,103
Irvine CA Public Fac. & Infrastructure Auth. Assessment Rev. 4.60% 9/2/2015 (2) 2,925 3,017
Irvine CA Public Fac. & Infrastructure Auth. Assessment Rev. 4.70% 9/2/2016 (2) 3,045 3,141
Kern CA Community College Dist. GO 5.00% 11/1/2017 (3) 2,210 2,380
Kern CA Community College Dist. GO 5.00% 11/1/2018 (3) 2,655 2,841
La Mesa-Spring Valley CA School Dist. GO 5.375% 8/1/2015 (3) 1,040 1,162
La Mesa-Spring Valley CA School Dist. GO 5.375% 8/1/2016 (3) 1,200 1,332
La Mesa-Spring Valley CA School Dist. GO 5.375% 8/1/2017 (3) 1,380 1,522
Long Beach CA Finance Auth. Lease Rev. 6.00% 11/1/2009 (2) 3,735 4,425
Long Beach CA Finance Auth. Lease Rev. 6.00% 11/1/2010 (2) 3,860 4,596
Long Beach CA Finance Auth. Lease Rev. 6.00% 11/1/2017 (2) 3,670 4,395
Long Beach CA Finance Auth. Lease Rev. (Aquarium of the South Pacific) 5.50% 11/1/2014 (2) 3,435 3,871
Long Beach CA Finance Auth. Lease Rev. (Rainbow Harbor) 5.25% 5/1/2014 (2) 2,035 2,246
Long Beach CA Harbor Rev. 8.00% 5/15/2004 (1) 3,305 3,408
Long Beach CA Harbor Rev. 5.50% 5/15/2007 7,670 8,511
Long Beach CA Harbor Rev. 5.50% 5/15/2008 8,095 9,086
Long Beach CA Harbor Rev. 6.00% 5/15/2009 (3) 2,770 3,190
Long Beach CA Harbor Rev. 6.00% 5/15/2010 (3) 3,200 3,690
Long Beach CA Harbor Rev. 6.00% 5/15/2011 (3) 1,000 1,158
Long Beach CA Harbor Rev. 5.75% 5/15/2012 10,050 11,238
Long Beach CA Harbor Rev. 6.00% 5/15/2012 (3) 4,000 4,639
Long Beach CA Harbor Rev. 6.00% 5/15/2013 (3) 6,700 7,773
Long Beach CA Harbor Rev. 6.00% 5/15/2014 (3) 7,405 8,620
Los Angeles CA Community College Dist. GO 5.50% 8/1/2013 (1) 6,250 7,022
Los Angeles CA Convention & Exhibit Center Auth. Lease Rev. 6.00% 8/15/2010 (1) 10,975 13,022
Los Angeles CA Convention & Exhibit Center Auth. Lease Rev. 6.125% 8/15/2011 (1) 1,300 1,553
Los Angeles CA COP 5.00% 4/1/2014 (2) 1,435 1,560
Los Angeles CA COP 5.00% 4/1/2015 (2) 1,560 1,685
Los Angeles CA COP 5.00% 4/1/2016 (2) 1,725 1,849
Los Angeles CA COP 5.00% 4/1/2018 (2) 1,950 2,064
Los Angeles CA Dept. of Airports Rev. 5.00% 5/15/2011 (1) 13,255 14,854
Los Angeles CA Dept. of Airports Rev. 5.00% 5/15/2013 (1) 10,500 11,664
31
- -----------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
CALIFORNIA INTERMEDIATE-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- -----------------------------------------------------------------------------------------------------------------------------
Los Angeles CA Dept. of Airports Rev. 5.25% 5/15/2017 (3) $6,800 $7,375
Los Angeles CA Dept. of Water & Power Rev. 5.125% 10/15/2013 (1) 3,500 3,823
Los Angeles CA Dept. of Water & Power Rev. 5.25% 7/1/2015 (1) 4,600 5,071
Los Angeles CA Dept. of Water & Power Rev. 5.00% 10/15/2015 (1) 10,000 10,800
Los Angeles CA Dept. of Water & Power Rev. 5.00% 10/15/2017 (1) 7,600 8,119
Los Angeles CA Dept. of Water & Power Rev. VRDO 1.11% 12/1/2003 500 500
Los Angeles CA Dept. of Water & Power Rev. VRDO 1.08% 12/8/2003 4,300 4,300
Los Angeles CA GO 5.25% 9/1/2012 (3) 2,000 2,267
Los Angeles CA GO 5.00% 9/1/2018 (1) 2,000 2,122
Los Angeles CA Harbor Dept. Rev. 5.50% 8/1/2007 3,000 3,279
Los Angeles CA Harbor Dept. Rev. 5.25% 11/1/2008 4,195 4,531
Los Angeles CA Harbor Dept. Rev. 5.50% 8/1/2010 (2) 2,750 3,103
Los Angeles CA Harbor Dept. Rev. 5.875% 8/1/2010 6,000 6,578
Los Angeles CA Harbor Dept. Rev. 5.90% 8/1/2011 7,385 8,154
Los Angeles CA Harbor Dept. Rev. 5.50% 8/1/2015 (2) 1,625 1,769
Los Angeles CA Muni. Improvement Corp. Lease Rev. 5.00% 9/1/2012 (3) 7,480 8,322
Los Angeles CA USD GO 5.25% 7/1/2009 (1)(Prere.) 5,175 5,961
Los Angeles CA USD GO 5.625% 7/1/2009 (1)(Prere.) 5,000 5,857
Los Angeles CA USD GO 5.625% 7/1/2009 (1)(Prere.) 6,615 7,749
Los Angeles CA USD GO 5.625% 7/1/2009 (1)(Prere.) 5,000 5,857
Los Angeles CA USD GO 5.50% 7/1/2010 (3)(Prere.) 9,160 10,627
Los Angeles CA USD GO 5.50% 7/1/2011 (1) 16,525 19,080
Los Angeles CA USD GO 5.50% 7/1/2012 (1) 5,240 6,024
Los Angeles CA USD GO 6.00% 7/1/2012 (3) 1,470 1,742
Los Angeles CA USD GO 6.00% 7/1/2013 (3) 3,745 4,465
Los Angeles CA USD GO 6.00% 7/1/2014 (3) 1,440 1,724
Los Angeles CA USD GO 5.00% 7/1/2016 (4) 3,000 3,249
Los Angeles CA USD GO 5.00% 7/1/2017 (4) 5,000 5,374
Los Angeles County CA Capital Asset Leasing Corp. Rev. 6.00% 12/1/2011 (2) 2,360 2,804
Los Angeles County CA Capital Asset Leasing Corp. Rev. 6.00% 12/1/2013 (2) 2,760 3,287
Los Angeles County CA Metro. Transp. Auth. Sales Tax Rev. 5.50% 7/1/2005 (2)(Prere.) 1,500 1,629
Los Angeles County CA Metro. Transp. Auth. Sales Tax Rev. 9.00% 7/1/2006 (1) 4,380 5,196
Los Angeles County CA Metro. Transp. Auth. Sales Tax Rev. 6.00% 7/1/2011 (2) 2,745 3,257
Los Angeles County CA Metro. Transp. Auth. Sales Tax Rev. 5.25% 7/1/2014 (1) 7,000 7,736
Los Angeles County CA Metro. Transp. Auth. Sales Tax Rev. 5.25% 7/1/2014 (4) 14,000 15,501
Los Angeles County CA Metro. Transp. Auth. Sales Tax Rev. 5.00% 7/1/2016 (4) 8,410 9,109
Los Angeles County CA Metro. Transp. Auth. Sales Tax Rev. 5.00% 7/1/2017 (4) 10,000 10,749
Los Angeles County CA Public Works Financing Auth. Rev. 5.125% 9/1/2008 (1) 3,555 3,936
Los Angeles County CA Public Works Financing Auth. Rev. 5.25% 9/1/2015 (1) 1,000 1,102
Los Angeles County CA Public Works Financing Auth. Rev. 5.00% 10/1/2016 (1) 10,000 10,746
Los Angeles County CA Schools COP 0.00% 8/1/2009 (2) 1,890 1,598
Los Angeles County CA Schools COP 0.00% 8/1/2011 (2) 1,945 1,469
Los Angeles County CA Schools COP 0.00% 8/1/2013 (2) 2,010 1,348
Metro. Water Dist. of Southern California Rev. 8.00% 7/1/2008 (ETM) 2,000 2,501
Metro. Water Dist. of Southern California Rev. VRDO 1.05% 12/8/2003 1,400 1,400
Metro. Water Dist. of Southern California Rev. VRDO 1.07% 12/8/2003 10,175 10,175
Modesto CA Irrigation Dist. COP 5.00% 7/1/2017 (1) 3,165 3,397
Modesto CA Irrigation Dist. Finance Auth. Rev. 5.125% 9/1/2015 (2) 4,365 4,762
Mojave CA Water Agency COP 5.45% 9/1/2015 (1) 6,150 6,901
MSR California Public Power Agency (San Juan Project) 5.00% 7/1/2009 (1) 1,840 2,071
MSR California Public Power Agency (San Juan Project) 5.00% 7/1/2013 (1) 1,500 1,637
32
- -------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
CALIFORNIA INTERMEDIATE-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- -------------------------------------------------------------------------------------------------------------------------
MSR California Public Power Agency (San Juan Project) 5.375% 1/2013 (1) $2,500 $2,781
MSR California Public Power Agency (San Juan Project) 6.75% 7/1/2020 (1)(ETM) 2,715 3,360
Mt. Diablo CA USD GO 5.00% 8/1/2014 (4) 2,020 2,204
Mt. Diablo CA USD GO 5.00% 8/1/2015 (4) 2,110 2,287
Mt. Diablo CA USD GO 5.00% 8/1/2016 (4) 2,210 2,379
New Haven CA USD GO 12.00% 8/1/2012 (4) 3,440 5,600
New Haven CA USD GO 12.00% 8/1/2015 (4) 2,905 4,986
Newark CA USD GO 0.00% 8/1/2008 (4) 1,685 1,492
Newark CA USD GO 0.00% 8/1/2009 (4) 1,065 902
Newark CA USD GO 0.00% 8/1/2010 (4) 1,000 803
North City West CA Community Dist. 6.00% 9/1/2005 (4) 1,510 1,634
North City West CA Community Dist. 6.00% 9/1/2006 (4) 1,600 1,789
North City West CA Community Dist. 6.00% 9/1/2007 (4) 1,695 1,916
North City West CA Community Dist. 5.75% 9/1/2015 (4) 2,000 2,251
North Orange County CA Community College Dist. GO 5.375% 8/1/2018 (1) 2,000 2,209
Northern California Power Agency Rev. 5.25% 8/1/2015 (2) 2,000 2,204
Oakland CA COP 5.00% 4/1/2011 (2) 1,855 2,073
Oakland CA COP 5.00% 4/1/2012 (2) 3,145 3,488
Oakland CA Joint Powers Financing Auth. Lease Rev.
(Oakland Convention Center) 5.50% 10/1/2012 (2) 3,000 3,450
Oakland CA Joint Powers Financing Auth. Lease Rev.
(Oakland Convention Center) 5.50% 10/1/2013 (2) 1,500 1,728
Oakland CA Redev. Agency (Central Dist.) 5.50% 9/1/2013 (3) 3,990 4,562
Oakland CA Redev. Agency (Central Dist.) 5.50% 9/1/2015 (3) 3,790 4,285
Oakland CA Redev. Agency (Central Dist.) 5.50% 6/1/2016 (3) 6,210 6,988
Ontario Montclair CA School Dist. COP PUT 3.80% 8/31/2007 (4) 1,730 1,733
Orange County CA Airport Rev. 5.50% 7/1/2004 (1) 3,555 3,645
Orange County CA Airport Rev. 6.00% 7/1/2005 (1) 4,020 4,301
Orange County CA Airport Rev. 6.00% 7/1/2006 (1) 9,565 10,557
Orange County CA Airport Rev. 5.375% 7/1/2009 (1) 1,950 2,145
Orange County CA Airport Rev. 5.00% 7/1/2011 (4) 3,165 3,551
Orange County CA Airport Rev. 5.50% 7/1/2011 (1) 3,580 3,982
Orange County CA Airport Rev. 5.00% 7/1/2017 (4) 1,725 1,854
Orange County CA Airport Rev. 5.00% 7/1/2018 (4) 1,500 1,602
Orange County CA Dev. Agency Tax Allocation 5.25% 9/1/2014 (1) 1,415 1,562
Orange County CA Dev. Agency Tax Allocation 5.25% 9/1/2015 (1) 1,485 1,632
Orange County CA Dev. Agency Tax Allocation 5.375% 9/1/2016 (1) 1,570 1,731
Orange County CA Dev. Agency Tax Allocation 5.00% 9/1/2018 (1) 1,635 1,730
Orange County CA Local Transp. Auth. Sales Tax Rev. 5.00% 2/15/2011 (2) 3,250 3,634
Orange County CA Local Transp. Auth. Sales Tax Rev. 5.70% 2/15/2011 (2) 15,445 17,950
Orange County CA Recovery COP 6.00% 7/1/2008 (1) 10,980 12,756
Orange County CA Recovery COP 6.00% 6/1/2010 (1) 3,800 4,501
Orange County CA Sanitation Dist. COP VRDO 1.07% 12/1/2003 870 870
Orange County CA Sanitation Dist. COP VRDO 1.07% 12/1/2003 575 575
Orange County CA Sanitation Dist. COP VRDO 1.08% 12/8/2003 (2) 4,605 4,605
Palomar Pomerado Health System California Rev. 5.375% 11/1/2010 (1) 2,670 3,008
Palomar Pomerado Health System California Rev. 5.375% 11/1/2012 (1) 7,080 7,759
Pasadena CA COP (City Hall & Park Improvement Project) VRDO 1.08% 12/8/2003 (2) 4,000 4,000
Pasadena CA Electric Rev. 5.00% 6/1/2017 (1) 2,320 2,477
Pasadena CA Electric Rev. 5.00% 6/1/2018 (1) 2,535 2,692
33
- -------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
CALIFORNIA INTERMEDIATE-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- -------------------------------------------------------------------------------------------------------------------------
Pomona Single Family Mortgage Rev. 7.60% 5/1/2023 (ETM) $13,000$17,298
Port of Oakland CA Rev. 5.50% 11/1/2008 (3) 2,500 2,834
Port of Oakland CA Rev. 5.50% 11/1/2009 (3) 1,000 1,137
Port of Oakland CA Rev. 5.375% 11/1/2010 (1) 9,000 10,022
Port of Oakland CA Rev. 5.50% 11/1/2010 (3) 8,805 9,905
Port of Oakland CA Rev. 5.00% 11/1/2011 (3) 5,160 5,806
Port of Oakland CA Rev. 5.50% 11/1/2011 (1) 5,850 6,524
Port of Oakland CA Rev. 5.00% 11/1/2012 (3) 2,650 2,958
Port of Oakland CA Rev. 5.00% 11/1/2012 (1) 7,020 7,679
Port of Oakland CA Rev. 5.25% 11/1/2013 (3) 7,150 8,034
Port of Oakland CA Rev. 5.00% 11/1/2014 (1) 8,090 8,692
Port of Oakland CA Rev. 5.25% 11/1/2014 (3) 5,000 5,572
Port of Oakland CA Rev. 5.25% 11/1/2015 (3) 5,000 5,544
Port of Oakland CA Rev. 5.25% 11/1/2016 (3) 6,300 6,941
Rancho CA Water Dist. Finance Auth. Rev. 5.875% 11/1/2010 (3) 3,000 3,304
Rancho CA Water Dist. Finance Auth. Rev. PUT 3.00% 8/1/2004 (3) 10,000 10,121
Redding CA Electric System COP 5.375% 6/1/2014 (2) 1,500 1,652
Redding CA Electric System COP 5.375% 6/1/2015 (2) 1,500 1,648
Redding CA Electric System COP 5.375% 6/1/2016 (2) 2,080 2,286
Riverside CA Electric Rev. 5.375% 10/1/2013 (2) 5,895 6,568
Riverside County CA Mortgage Rev. 8.35% 6/1/2013 (ETM) 6,650 8,971
Roseville CA Water Util. Rev. COP 5.20% 12/1/2015 (3) 5,000 5,498
Sacramento CA Cogeneration Auth. Rev. 5.25% 7/1/2011 (1) 4,730 5,249
Sacramento CA Cogeneration Auth. Rev. 5.25% 7/1/2014 (1) 5,500 6,079
Sacramento CA Cogeneration Auth. Rev. 5.25% 7/1/2015 (1) 5,755 6,338
Sacramento CA Cogeneration Auth. Rev. 5.00% 7/1/2017 (1) 4,760 5,080
Sacramento CA County Sanitation Dist. Financing Auth. 6.00% 12/1/2013 2,500 2,941
Sacramento CA County Sanitation Dist. Financing Auth. 6.00% 12/1/2015 2,500 2,932
Sacramento CA Financing Auth. Lease Rev. 5.00% 11/1/2014 (1) 4,170 4,606
Sacramento CA Financing Auth. Lease Rev. 5.375% 12/1/2014 (4) 6,025 6,777
Sacramento CA Muni. Util. Dist. Rev. 5.75% 1/1/2004 (1)(Prere.) 4,255 4,358
Sacramento CA Muni. Util. Dist. Rev. 5.75% 1/1/2010 (1) 745 763
Sacramento CA Muni. Util. Dist. Rev. 5.10% 7/1/2013 (2) 2,850 3,127
Sacramento CA Muni. Util. Dist. Rev. 5.25% 8/15/2013 (4) 1,000 1,109
Sacramento CA Muni. Util. Dist. Rev. 5.25% 8/15/2014 (4) 2,500 2,760
Sacramento CA Muni. Util. Dist. Rev. 5.125% 7/1/2015 (1) 8,270 9,014
Sacramento County CA Airport Rev. 5.00% 7/1/2013 (4) 1,005 1,079
Sacramento County CA Airport Rev. 5.25% 7/1/2014 (4) 1,060 1,147
Sacramento County CA Airport Rev. 5.25% 7/1/2017 (4) 1,230 1,308
Sacramento County CA Public Fac. Finance Corp. COP (Main Detention Fac.) 5.50% 6/1/2010 (1)(ETM) 5,500 6,217
Sacramento County CA Water Financing Auth. Rev. Agency Zones 4.25% 6/1/2012 (2) 1,100 1,164
Sacramento County CA Water Financing Auth. Rev. Agency Zones 5.00% 6/1/2015 (2) 1,235 1,348
Sacramento County CA Water Financing Auth. Rev. Agency Zones 5.00% 6/1/2016 (2) 1,195 1,294
Sacramento County CA Water Financing Auth. Rev. Agency Zones 5.00% 6/1/2018 (2) 1,430 1,527
Salinas Valley CA Solid Waste Auth. Rev. 5.625% 8/1/2014 (2) 1,085 1,200
Salinas Valley CA Solid Waste Auth. Rev. 5.625% 8/1/2015 (2) 1,150 1,266
34
- -------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
CALIFORNIA INTERMEDIATE-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- -------------------------------------------------------------------------------------------------------------------------
Salinas Valley CA Solid Waste Auth. Rev. 5.625% 8/1/2016 (2) $1,215 $1,330
Salinas Valley CA Solid Waste Auth. Rev. 5.625% 8/1/2017 (2) 1,285 1,400
Salinas Valley CA Solid Waste Auth. Rev. 5.625% 8/1/2018 (2) 1,360 1,477
San Bernardino County CA Justice Center and Airport COP 5.00% 7/1/2014 (1) 5,585 6,175
San Bernardino County CA Medical Center COP 5.50% 8/1/2006 (1) 8,500 9,370
San Bernardino County CA Medical Center COP 5.50% 8/1/2007 (1) 5,000 5,633
San Bernardino County CA Medical Center COP 5.50% 8/1/2017 (1) 5,250 5,954
San Bernardino County CA Medical Center COP 6.50% 8/1/2017 (1) 5,000 6,239
San Diego CA Financing Auth. Lease Rev. 5.25% 4/1/2012 (2) 3,000 3,311
San Diego CA Financing Auth. Lease Rev. 5.25% 4/1/2014 (2) 5,680 6,266
San Diego CA USD GO 0.00% 7/1/2009 (3) 6,270 5,326
San Diego CA USD GO 0.00% 7/1/2014 (3) 3,400 2,167
San Diego CA Water Util. Rev. 5.375% 8/1/2008 (3)(Prere.) 2,000 2,297
San Diego CA Water Util. Rev. 5.375% 8/1/2008 (3)(Prere.) 3,000 3,446
San Diego CA Water Util. Rev. COP 5.375% 8/1/2008 (3)(Prere.) 2,085 2,395
San Diego County CA Regional Transp. Auth. Sales Tax Rev. 6.00% 4/1/2004 (2) 3,000 3,050
San Francisco CA Bay Area Rapid Transit Rev. 5.55% 7/1/2005 (3)(Prere.) 2,260 2,434
San Francisco CA City & County COP (San Bruno Jail) 5.25% 10/1/2014 (2) 2,860 3,167
San Francisco CA City & County COP (San Bruno Jail) 5.125% 10/1/2017 (2) 1,000 1,081
San Francisco CA City & County Finance Corp. Lease Rev.
(Moscone Center Expansion) VRDO 1.05% 12/8/2003 (2) 5,080 5,080
San Francisco CA City & County International Airport Rev. 5.00% 5/1/2004 (1) 3,500 3,556
San Francisco CA City & County International Airport Rev. 5.50% 5/1/2006 (3)(Prere.) 2,880 3,180
San Francisco CA City & County International Airport Rev. 5.50% 5/1/2006 (3)(Prere.) 3,080 3,401
San Francisco CA City & County International Airport Rev. 6.00% 5/1/2007 (1) 2,645 2,973
San Francisco CA City & County International Airport Rev. 5.50% 5/1/2008 (4) 3,000 3,361
San Francisco CA City & County International Airport Rev. 6.25% 5/1/2008 (1) 2,190 2,518
San Francisco CA City & County International Airport Rev. 5.50% 5/1/2009 (4) 3,000 3,337
San Francisco CA City & County International Airport Rev. 5.50% 5/1/2009 (4) 1,915 2,162
San Francisco CA City & County International Airport Rev. 5.50% 5/1/2009 (4) 3,110 3,454
San Francisco CA City & County International Airport Rev. 5.50% 5/1/2009 (1) 2,945 3,271
San Francisco CA City & County International Airport Rev. 5.00% 5/1/2010 (3) 5,140 5,789
San Francisco CA City & County International Airport Rev. 5.50% 5/1/2010 (1) 4,335 4,856
San Francisco CA City & County International Airport Rev. 5.50% 5/1/2010 (3) 2,000 2,223
San Francisco CA City & County International Airport Rev. 5.50% 5/1/2010 (4) 3,280 3,590
San Francisco CA City & County International Airport Rev. 5.50% 5/1/2010 (4) 2,020 2,283
San Francisco CA City & County International Airport Rev. 5.25% 5/1/2011 (3) 4,150 4,487
San Francisco CA City & County International Airport Rev. 5.00% 5/1/2012 (3) 2,065 2,209
San Francisco CA City & County International Airport Rev. 5.25% 5/1/2012 (3) 4,380 4,704
San Francisco CA City & County International Airport Rev. 5.50% 5/1/2012 (4) 3,650 4,039
San Francisco CA City & County International Airport Rev. 5.00% 5/1/2013 (3) 2,230 2,376
San Francisco CA City & County International Airport Rev. 5.25% 5/1/2013 (1) 2,430 2,718
San Francisco CA City & County International Airport Rev. 5.25% 5/1/2013 (2) 3,570 3,874
San Francisco CA City & County International Airport Rev. 5.00% 5/1/2014 (3) 2,340 2,476
San Francisco CA City & County International Airport Rev. 5.25% 5/1/2014 (1) 3,185 3,532
San Francisco CA City & County International Airport Rev. 5.50% 5/1/2014 (4) 4,065 4,428
San Francisco CA City & County International Airport Rev. 5.25% 5/1/2015 (1) 4,015 4,431
San Francisco CA City & County Redev. Agency Lease Rev. (Moscone Center) 5.00% 7/1/2016 (4) 3,270 3,500
San Francisco CA City & County Redev. Agency Lease Rev. (Moscone Center) 5.00% 7/1/2017 (4) 1,695 1,803
35
- -------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
CALIFORNIA INTERMEDIATE-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- -------------------------------------------------------------------------------------------------------------------------
San Francisco CA City & County Water Rev. 5.00% 11/1/2017 (1) $4,865 $5,208
San Joaquin Hills CA Transp. Corridor Agency Toll Road Rev. 0.00% 1/15/2006 (1)(ETM) 10,000 9,624
San Joaquin Hills CA Transp. Corridor Agency Toll Road Rev. 0.00% 1/15/2011 (1) 7,140 5,516
San Joaquin Hills CA Transp. Corridor Agency Toll Road Rev. 0.00% 1/15/2014 (1) 5,500 3,567
San Jose CA Airport Rev. 5.375% 3/1/2013 (4) 4,945 5,598
San Jose CA Airport Rev. 5.375% 3/1/2014 (4) 7,550 8,470
San Jose CA Airport Rev. 5.375% 3/1/2015 (4) 7,950 8,887
San Jose CA Financing Auth. Lease Rev. 5.00% 9/1/2013 (1) 9,570 10,440
San Jose CA USD GO 5.50% 8/1/2012 (3) 1,930 2,177
San Jose CA USD GO 5.50% 8/1/2013 (3) 1,950 2,193
San Jose CA USD GO 5.25% 8/1/2014 (4) 2,540 2,803
San Jose CA USD GO 5.60% 8/1/2014 (3) 2,685 3,041
San Jose CA USD GO 5.25% 8/1/2015 (4) 2,790 3,078
San Jose CA USD GO 5.60% 8/1/2015 (3) 2,745 3,109
San Mateo CA Redev. Auth. Tax Allocation 4.75% 8/1/2010 1,375 1,506
San Mateo CA Redev. Auth. Tax Allocation 4.75% 8/1/2011 1,255 1,361
San Mateo CA Redev. Auth. Tax Allocation 5.00% 8/1/2012 1,000 1,081
San Mateo CA Redev. Auth. Tax Allocation 5.20% 8/1/2015 2,045 2,189
San Mateo CA Redev. Auth. Tax Allocation 5.25% 8/1/2016 2,225 2,377
San Mateo CA Union High School Dist. GO 0.00% 9/1/2010 (3) 1,200 961
San Mateo CA Union High School Dist. GO 0.00% 9/1/2012 (3) 1,180 837
San Mateo CA Union High School Dist. GO 0.00% 9/1/2013 (3) 1,715 1,149
San Mateo CA Union High School Dist. GO 0.00% 9/1/2014 (3) 1,500 949
San Mateo County CA Community College Dist. GO 5.375% 9/1/2015 (3) 1,300 1,453
San Mateo County CA Community College Dist. GO 5.375% 9/1/2018 (3) 1,515 1,664
San Mateo County CA Transp. Dist. Sales Tax Rev. 5.25% 6/1/2013 (4) 1,865 2,055
San Mateo County CA Transp. Dist. Sales Tax Rev. 5.25% 6/1/2014 (4) 4,275 4,722
San Ramon Valley CA USD GO 0.00% 7/1/2007 (3) 3,950 3,648
Santa Ana CA Community Redev. Agency Tax Allocation (South Main Street) 5.00% 9/1/2017 (3) 2,550 2,744
Santa Ana CA Community Redev. Agency Tax Allocation (South Main Street) 5.00% 9/1/2018 (3) 2,685 2,871
Santa Ana CA Finance Auth. Rev. 5.375% 9/1/2009 (1) 3,040 3,477
Santa Ana CA Finance Auth. Rev. 5.375% 9/1/2010 (1) 1,600 1,810
Santa Barbara County CA COP 5.25% 12/1/2012 (2) 1,000 1,134
Santa Barbara County CA COP 5.25% 12/1/2013 (2) 2,355 2,650
Santa Barbara County CA COP 5.25% 12/1/2015 (2) 1,065 1,184
Santa Barbara County CA COP 5.25% 12/1/2016 (2) 1,760 1,945
Santa Barbara County CA COP 5.00% 12/1/2018 (2) 1,945 2,078
Santa Clara CA Electric Rev. 5.25% 7/1/2013 (1) 1,475 1,623
Santa Clara CA Electric Rev. 5.25% 7/1/2018 (1) 1,720 1,883
Santa Clara County CA Financing Auth. Lease Rev. 7.75% 11/15/2010 (2) 4,500 5,831
Santa Clara County CA Financing Auth. Lease Rev. 5.50% 5/15/2011 (2) 4,535 5,182
Santa Clara County CA Financing Auth. Lease Rev. 7.75% 11/15/2011 (2) 1,000 1,311
Santa Clara County CA Financing Auth. Lease Rev. 5.50% 5/15/2012 (2) 4,785 5,383
Santa Clara County CA Financing Auth. Lease Rev. 5.00% 11/15/2017 (2) 5,500 5,877
Santa Margarita/Dana Point CA Auth. Rev. 5.50% 8/1/2008 (2) 3,345 3,788
Santa Margarita/Dana Point CA Auth. Rev. 5.50% 8/1/2009 (2) 3,860 4,382
Santa Margarita/Dana Point CA Auth. Rev. 7.25% 8/1/2009 (1) 2,000 2,488
Santa Margarita/Dana Point CA Auth. Rev. 5.50% 8/1/2010 (2) 2,245 2,550
Santa Margarita/Dana Point CA Auth. Rev. 7.25% 8/1/2010 (1) 4,630 5,832
36
- -------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
CALIFORNIA INTERMEDIATE-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- -------------------------------------------------------------------------------------------------------------------------
Santa Margarita/Dana Point CA Auth. Rev. 7.25% 8/1/2011 (1) $1,640 $2,085
South Orange County CA Public Finance Auth. Rev. 9.50% 8/15/2004 (3) 4,395 4,652
South Orange County CA Public Finance Auth. Rev. 7.00% 9/1/2005 (1) 3,440 3,779
South Orange County CA Public Finance Auth. Rev. 7.00% 9/1/2007 (1) 1,000 1,182
South Orange County CA Public Finance Auth. Rev. 7.00% 9/1/2008 (1) 5,610 6,784
South Orange County CA Public Finance Auth. Rev. 7.00% 9/1/2009 (1) 5,000 6,158
South Orange County CA Public Finance Auth. Rev. 7.00% 9/1/2010 (1) 3,300 4,108
South Orange County CA Public Finance Auth. Rev. 7.00% 9/1/2011 (1) 3,490 4,375
South Orange County CA Public Finance Auth. Rev. 5.375% 8/15/2012 (4) 5,605 6,246
South Orange County CA Public Finance Auth. Rev. 5.25% 8/15/2013 (2) 2,290 2,526
South Placer CA Wastewater Auth. Rev. 5.50% 11/1/2010(3)(Prere.) 660 774
South Placer CA Wastewater Auth. Rev. 5.50% 11/1/2010(3)(Prere.) 1,640 1,924
South Placer CA Wastewater Auth. Rev. 5.50% 11/1/2010(3)(Prere.) 2,190 2,570
South Placer CA Wastewater Auth. Rev. 5.50% 11/1/2010(3)(Prere.) 1,000 1,173
Southern California Public Power Auth. Rev. (Palo Verde Project) VRDO 1.05% 12/8/2003 (2) 3,700 3,700
Southern California Public Power Auth. Rev. (San Juan Unit) 5.50% 1/1/2013 (4) 3,500 4,012
Southern California Public Power Auth. Rev. (Transmission Project) VRDO 1.05% 12/8/2003 (2)LOC 2,300 2,300
Southern California Public Power Auth. Rev. (Transmission Project) VRDO 1.07% 12/8/2003 (4) 3,400 3,400
Tamalpais CA Union High School Dist. GO 5.00% 8/1/2014 (4) 1,780 1,942
Tamalpais CA Union High School Dist. GO 5.00% 8/1/2015 (4) 1,855 2,011
Tamalpais CA Union High School Dist. GO 5.00% 8/1/2016 (4) 1,930 2,077
Tamalpais CA Union High School Dist. GO 5.00% 8/1/2017 (4) 2,015 2,154
Tri-City CA Hosp. Dist. 5.50% 2/15/2008 (1) 3,805 4,186
Tri-City CA Hosp. Dist. 5.50% 2/15/2009 (1) 2,665 2,929
Tri-City CA Hosp. Dist. 5.625% 2/15/2011 (1) 2,970 3,262
Tri-City CA Hosp. Dist. 5.625% 2/15/2012 (1) 1,880 2,063
Tulare County CA COP 5.80% 11/15/2004 (1) 1,000 1,045
Tulare County CA COP 5.00% 8/15/2015 (1) 6,460 7,148
Univ. of California Rev. 5.00% 5/15/2009 (2) 17,500 19,724
Univ. of California Rev. (Medical Center) 5.625% 7/1/2006(2)(Prere.) 6,660 7,407
Univ. of California Rev. (Multiple Purpose Project) 5.00% 9/1/2013 1,000 1,069
Univ. of California Rev. (Multiple Purpose Project) 5.125% 9/1/2013 (3) 3,150 3,439
Univ. of California Rev. (Multiple Purpose Project) 5.00% 9/1/2014 8,485 9,205
Univ. of California Rev. (San Diego Medical Center) 5.125% 12/1/2014 (4) 4,290 4,645
Univ. of California Rev. (San Diego Medical Center) 5.125% 12/1/2015 (4) 4,515 4,862
Ventura County CA Community College Dist. GO 5.00% 8/1/2014 (1) 2,800 3,079
Ventura County CA Community College Dist. GO 5.00% 8/1/2016 (1) 3,100 3,359
Ventura County CA Community College Dist. GO 5.00% 8/1/2017 (1) 2,300 2,473
Ventura County CA COP Public Finance Auth. 5.375% 8/15/2013 (4) 4,320 4,809
Vista CA USD GO 5.375% 8/1/2015 (4) 1,500 1,675
Vista CA USD GO 5.375% 8/1/2016 (4) 1,885 2,092
Vista CA USD GO 5.375% 8/1/2017 (4) 1,615 1,781
Whittier CA Insured Health Fac. Rev. (Presbyterian Hosp.) 6.00% 6/1/2004 (1) 3,580 3,667
Whittier CA Insured Health Fac. Rev. (Presbyterian Hosp.) 6.00% 6/1/2005 (1) 3,675 3,934
William S. Hart CA Union High School Dist. GO 5.00% 9/1/2018 (1) 1,400 1,497
OUTSIDE CALIFORNIA:
Guam International Airport Auth. Rev. 5.00% 10/1/2008 (1) 4,915 5,436
37
- -------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
CALIFORNIA INTERMEDIATE-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- -------------------------------------------------------------------------------------------------------------------------
Guam International Airport Auth. Rev. 5.00% 10/1/2010 (1) 6,050 6,646
Guam International Airport Auth. Rev. 5.00% 10/1/2011 (1) 6,400 6,989
Puerto Rico Aqueduct & Sewer Auth. Rev. 6.00% 7/1/2009 (1) 5,250 6,172
Puerto Rico Aqueduct & Sewer Auth. Rev. 6.25% 7/1/2012 (1) 1,000 1,212
Puerto Rico Electric Power Auth. Rev. 6.50% 7/1/2005 (1) 5,500 5,950
Puerto Rico Electric Power Auth. Rev. 5.00% 7/1/2010 7,500 8,233
Puerto Rico Electric Power Auth. Rev. 5.75% 7/1/2010(4)(Prere.) 3,700 4,347
Puerto Rico Electric Power Auth. Rev. 5.75% 7/1/2010(4)(Prere.) 2,700 3,172
Puerto Rico Electric Power Auth. Rev. 5.75% 7/1/2010(4)(Prere.) 4,000 4,699
Puerto Rico Electric Power Auth. Rev. 6.25% 7/1/2010 (1) 1,850 2,219
Puerto Rico Electric Power Auth. Rev. 5.00% 7/1/2011 12,500 13,644
Puerto Rico Electric Power Auth. Rev. 5.50% 7/1/2011 (4) 6,050 6,949
Puerto Rico Electric Power Auth. Rev. 6.00% 7/1/2012 (1) 8,235 9,832
Puerto Rico GO 4.00% 7/1/2007 4,065 4,305
Puerto Rico GO 5.00% 7/1/2008 3,715 4,095
Puerto Rico GO 5.75% 7/1/2008 (1) 6,985 8,023
Puerto Rico GO 5.75% 7/1/2010 (2)(ETM) 7,000 8,196
Puerto Rico GO 5.50% 7/1/2011 (3) 12,975 15,043
Puerto Rico GO 6.50% 7/1/2011 (1) 2,500 3,061
Puerto Rico Govt. Dev. Bank VRDO 1.01% 12/8/2003 (1) 7,200 7,200
Puerto Rico Highway & Transp. Auth. Rev. 5.25% 7/1/2009 10,000 11,166
Puerto Rico Highway & Transp. Auth. Rev. 5.25% 7/1/2010 5,000 5,562
Puerto Rico Highway & Transp. Auth. Rev. 5.50% 7/1/2013 (1) 2,250 2,612
Puerto Rico Highway & Transp. Auth. Rev. VRDO 1.07% 12/8/2003 (2) 7,900 7,900
Puerto Rico Housing Finance Corp. Home Mortgage Rev. 4.45% 6/1/2027 8,495 8,867
Puerto Rico Muni. Finance Agency 5.625% 8/1/2010 (4) 17,775 20,461
Puerto Rico Muni. Finance Agency 5.75% 8/1/2011 (4) 5,500 6,359
Puerto Rico Public Buildings Auth. Govt. Fac. Rev. 5.25% 7/1/2009 11,345 12,668
Univ. of Puerto Rico Rev. 5.75% 6/1/2012 (1) 2,000 2,308
Univ. of Puerto Rico Rev. 5.20% 6/1/2016 (1) 1,215 1,337
Univ. of Puerto Rico Rev. 5.75% 6/1/2016 (1) 1,000 1,137
- -------------------------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost $2,329,362) 2,459,566
- -------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (-0.2%)
- -------------------------------------------------------------------------------------------------------------------------
Other Assets--Note B 35,249
Liabilities (39,659)
--------
(4,410)
--------
- -------------------------------------------------------------------------------------------------------------------------
NET ASSETS (100%) $2,455,156
=========================================================================================================================
*See Note A in NOTES TO FINANCIAL STATEMENTS.
*Securities with a value of $7,834,000 have been segregated as initial margin
for open futures contracts.
+Security purchased on a when-issued or delayed delivery basis for which the
fund has not taken delivery as of November 30, 2003. For key to abbreviations
and other references, see page 49.
38
- --------------------------------------------------------------------------------
AMOUNT
(000)
- --------------------------------------------------------------------------------
AT NOVEMBER 30, 2003, NET ASSETS CONSISTED OF:
- --------------------------------------------------------------------------------
Paid-in Capital $2,313,711
Undistributed Net Investment Income --
Accumulated Net Realized Gains 8,053
Unrealized Appreciation
Investment Securities 130,204
Futures Contracts 3,188
- --------------------------------------------------------------------------------
NET ASSETS $2,455,156
================================================================================
Investor Shares--Net Assets
Applicable to 130,187,630 outstanding $.001 par value
shares of beneficial interest (unlimited authorization) $1,489,530
- --------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE--INVESTOR SHARES $11.44
================================================================================
Admiral Shares--Net Assets
Applicable to 84,397,468 outstanding $.001 par value
shares of beneficial interest (unlimited authorization) $965,626
- --------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE--ADMIRAL SHARES $11.44
================================================================================
See Note D in NOTES TO FINANCIAL STATEMENTS for the tax-basis components of net
assets.
39
- ------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
CALIFORNIA LONG-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- ------------------------------------------------------------------------------------------------------------------------------
ABAG Finance Auth. for Non-Profit Corp. California
(Children's Hosp. Medical Center) COP 6.00% 12/1/2029 (2) $3000 $3429
ABAG Finance Auth. for Non-Profit Corp. California
School of the Mechanical Arts) 5.25% 10/1/2026 1000 1038
ABAG Finance Auth. for Non-Profit Corp. California
School of the Mechanical Arts) 5.30% 10/1/2032 3180 3302
Alameda CA Corridor Transp. Auth. Rev. 5.13% 10/1/2017 (1) 5000 5405
Alameda CA Corridor Transp. Auth. Rev. 5.13% 10/1/2018 (1) 2000 2150
Alameda County CA COP 5.38% 12/1/2016 (1) 2000 2216
Alameda County CA COP 5.38% 12/1/2017 (1) 1180 1300
Anaheim CA Convention Center COP 0.00% 8/1/2005 (1) 1250 1218
Anaheim CA Convention Center COP 0.00% 8/1/2006 (1) 3125 2969
Anaheim CA Public Finance Auth. Distribution System Rev. 5.00% 10/1/2019 3005 3194
Anaheim CA Public Finance Auth. Distribution System Rev. 5.00% 10/1/2021 3390 3559
Barstow CA Redev. Agency 6.25% 9/1/2022 (1) 2225 2349
California Dept. of Veteran Affairs Rev. 5.45% 12/1/2019 (2) 9440 9964
California Educ. Fac. Auth. Rev. (College of Arts & Crafts) 6.88% 6/1/2019 1615 1921
California Educ. Fac. Auth. Rev. (College of Arts & Crafts) 5.75% 6/1/2025 2000 2041
California Educ. Fac. Auth. Rev. (Loyola-Marymount Univ.) 0.00% 10/1/2015 (1) 1250 741
California Educ. Fac. Auth. Rev. (Loyola-Marymount Univ.) 0.00% 10/1/2018 (1) 1580 781
California Educ. Fac. Auth. Rev. (Loyola-Marymount Univ.) 0.00% 10/1/2020 (1) 1395 609
California Educ. Fac. Auth. Rev. (Occidental College) 5.70% 10/1/2027 (1) 11565 12820
California Educ. Fac. Auth. Rev. (Univ. of Southern California) 5.00% 10/1/2033 12000 12242
California GO 7.00% 11/1/2004 (3)(Prere.) 1935 2078
California GO 6.25% 9/1/2012 (3) 9000 10787
California GO 7.00% 11/1/2013 (3) 65 70
California GO 5.25% 10/1/2014 (3) 15610 17121
California GO 5.40% 12/1/2016 (4) 1000 1047
California GO 6.00% 8/1/2019 (3) 210 220
California GO VRDO 1.10% 12/1/2003 LOC 3000 3000
California Health Fac. Finance Auth. Rev. (Casa Colina) 6.13% 4/1/2032 10000 10258
California Health Fac. Finance Auth. Rev. (Catholic Healthcare West) 5.75% 7/1/2015 (2) 4080 4425
California Health Fac. Finance Auth. Rev. (Catholic Healthcare West) 6.00% 7/1/2017 (1) 27900 31291
California Health Fac. Finance Auth. Rev. (Catholic Healthcare West) 4.75% 7/1/2019 (1) 4180 4214
California Health Fac. Finance Auth. Rev. (Kaiser Permanente) 5.25% 10/1/2010 (2) 9785 10971
California Health Fac. Finance Auth. Rev. (Scripps Health) 5.00% 10/1/2018 (1) 5000 5207
California Housing Finance Agency Home Mortgage Rev. 0.00% 8/1/2015 (4) 31795 17864
California Housing Finance Agency Home Mortgage Rev. 0.00% 8/1/2020 (4) 30235 11535
California Housing Finance Agency Home Mortgage Rev. 6.05% 8/1/2027 (2) 5000 5235
California Housing Finance Agency Home Mortgage Rev.
(Multi-Family Housing III) 5.38% 8/1/2028 1790 1810
California Housing Finance Agency Home Mortgage Rev. VRDO 1.04% 12/1/2003 (4) 20000 20000
California Infrastructure & Econ. Dev. Bank Rev. (Asian Art Museum) 5.25% 6/1/2026 (1) 6245 6576
California Infrastructure & Econ. Dev. Bank Rev.
(J. David Gladstone Institute) 5.50% 10/1/2018 3905 4207
40
- ------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
CALIFORNIA LONG-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- ------------------------------------------------------------------------------------------------------------------------------
ABAG Finance Auth. for Non-Profit Corp. California
(Children's Hosp. Medical Center) COP 6.00% 12/1/2029 (2) $3,000 $3,429
ABAG Finance Auth. for Non-Profit Corp.
California School of the Mechanical Arts) 5.25% 10/1/2026 1,000 1,038
ABAG Finance Auth. for Non-Profit Corp.
California School of the Mechanical Arts) 5.30% 10/1/2032 3,180 3,302
Alameda CA Corridor Transp. Auth. Rev. 5.13% 10/1/2017 (1) 5,000 5,405
Alameda CA Corridor Transp. Auth. Rev. 5.13% 10/1/2018 (1) 2,000 2,150
Alameda County CA COP 5.38% 12/1/2016 (1) 2,000 2,216
Alameda County CA COP 5.38% 12/1/2017 (1) 1,180 1,300
Anaheim CA Convention Center COP 0.00% 8/1/2005 (1) 1,250 1,218
Anaheim CA Convention Center COP 0.00% 8/1/2006 (1) 3,125 2,969
Anaheim CA Public Finance Auth. Distribution System Rev. 5.00% 10/1/2019 3,005 3,194
Anaheim CA Public Finance Auth. Distribution System Rev. 5.00% 10/1/2021 3,390 3,559
Barstow CA Redev. Agency 6.25% 9/1/2022 (1) 2,225 2,349
California Dept. of Veteran Affairs Rev. 5.45% 12/1/2019 (2) 9,440 9,964
California Educ. Fac. Auth. Rev. (College of Arts & Crafts) 6.88% 6/1/2019 1,615 1,921
California Educ. Fac. Auth. Rev. (College of Arts & Crafts) 5.75% 6/1/2025 2,000 2,041
California Educ. Fac. Auth. Rev. (Loyola-Marymount Univ.) 0.00% 10/1/2015 (1) 1,250 741
California Educ. Fac. Auth. Rev. (Loyola-Marymount Univ.) 0.00% 10/1/2018 (1) 1,580 781
California Educ. Fac. Auth. Rev. (Loyola-Marymount Univ.) 0.00% 10/1/2020 (1) 1,395 609
California Educ. Fac. Auth. Rev. (Occidental College) 5.70% 10/1/2027 (1) 11,565 12,820
California Educ. Fac. Auth. Rev. (Univ. of Southern California) 5.00% 10/1/2033 12,000 12,242
California GO 7.00% 11/1/2004 (3)(Prere.) 1,935 2,078
California GO 6.25% 9/1/2012 (3) 9,000 10,787
California GO 7.00% 11/1/2013 (3) 65 70
California GO 5.25% 10/1/2014 (3) 15,610 17,121
California GO 5.40% 12/1/2016 (4) 1,000 1,047
California GO 6.00% 8/1/2019 (3) 210 220
California GO VRDO 1.10% 12/1/2003 LOC 3,000 3,000
California Health Fac. Finance Auth. Rev. (Casa Colina) 6.13% 4/1/2032 10,000 10,258
California Health Fac. Finance Auth. Rev. (Catholic Healthcare West) 5.75% 7/1/2015 (2) 4,080 4,425
California Health Fac. Finance Auth. Rev. (Catholic Healthcare West) 6.00% 7/1/2017 (1) 27,900 31,291
California Health Fac. Finance Auth. Rev. (Catholic Healthcare West) 4.75% 7/1/2019 (1) 4,180 4,214
California Health Fac. Finance Auth. Rev. (Kaiser Permanente) 5.25% 10/1/2010 (2) 9,785 10,971
California Health Fac. Finance Auth. Rev. (Scripps Health) 5.00% 10/1/2018 (1) 5,000 5,207
California Housing Finance Agency Home Mortgage Rev. 0.00% 8/1/2015 (4) 31,795 17,864
California Housing Finance Agency Home Mortgage Rev. 0.00% 8/1/2020 (4) 30,235 11,535
California Housing Finance Agency Home Mortgage Rev. 6.05% 8/1/2027 (2) 5,000 5,235
California Housing Finance Agency Home Mortgage Rev.
(Multi-Family Housing III) 5.38% 8/1/2028 1,790 1,810
California Housing Finance Agency Home Mortgage Rev. VRDO 1.04% 12/1/2003 (4) 20,000 20,000
California Infrastructure & Econ. Dev. Bank Rev. (Asian Art Museum) 5.25% 6/1/2026 (1) 6,245 6,576
California Infrastructure & Econ. Dev. Bank Rev.
(J. David Gladstone Institute) 5.50% 10/1/2018 3,905 4,207
California Infrastructure & Econ. Dev. Bank Rev.
(J. David Gladstone Institute) 5.50% 10/1/2020 1,500 1,602
California Infrastructure & Econ. Dev. Bank Rev.
(J. David Gladstone Institute) 5.25% 10/1/2034 20,040 20,386
California Infrastructure & Econ. Dev. Bank Rev.
(Kaiser Hosp. Association) 5.50% 8/1/2031 7,610 7,758
California Infrastructure & Econ. Dev. Bank Rev.
(Kaiser Hosp. Association) 5.55% 8/1/2031 5,500 5,643
California Infrastructure & Econ. Dev. Bank Rev.
(YMCA of Metropolitan LA) 5.25% 2/1/2026 (2) 4,750 5,011
California Pollution Control Financing Auth.
Solid Waste Disposal Rev. (Republic Services) PUT 5.25% 12/1/2017 10,000 10,250
California Polytechnical Univ. Rev. (Pomona Student Union) 5.63% 7/1/2026 (3) 3,000 3,291
California Polytechnical Univ. Rev. (Pomona Student Union) 5.63% 7/1/2030 (3) 5,260 5,773
California Public Works Board Lease Rev. (Dept. of Corrections) 5.00% 6/1/2010 + 4,000 4,321
California Public Works Board Lease Rev. (Dept. of Corrections) 5.00% 6/1/2011 + 3,500 3,756
California Public Works Board Lease Rev. (Dept. of Corrections) 5.00% 6/1/2012 + 5,000 5,316
California Public Works Board Lease Rev. (Dept. of Corrections) 5.63% 11/1/2016 (1) 3,200 3,603
California Public Works Board Lease Rev. (Dept. of Corrections) 5.50% 1/1/2017 (2) 22,285 24,365
California Public Works Board Lease Rev. (Dept. of Corrections) 6.50% 9/1/2017 (2) 30,000 36,975
California Public Works Board Lease Rev. (Dept. of Health Services) 5.75% 11/1/2024 (1) 7,885 8,491
California Public Works Board Lease Rev. (UCLA Hosp.) 5.38% 10/1/2019 (4) 6,375 6,927
California Public Works Board Lease Rev. (Univ. of California) 5.38% 10/1/2017 (2) 10,250 11,356
California Rural Home Mortgage Finance Auth. Single Family Mortgage Rev. 7.00% 9/1/2029 2,245 2,286
California Rural Home Mortgage Finance Auth. Single Family Mortgage Rev. 6.35% 12/1/2029 1,810 1,903
California State Dept. Water Resources Power Supply Rev. 6.00% 5/1/2013 18,000 20,580
California State Dept. Water Resources Power Supply Rev. 5.13% 5/1/2019 20,000 20,641
California State Dept. Water Resources Power Supply Rev. VRDO 1.05% 12/1/2003 LOC 1,400 1,400
California State Dept. Water Resources Power Supply Rev. VRDO 1.08% 12/1/2003 LOC 10,050 10,050
California State Dept. Water Resources Power Supply Rev. VRDO 1.12% 12/8/2003 LOC 8,800 8,800
California State Univ. Rev. & Colleges Housing System Rev. 5.63% 11/1/2024 (3) 6,920 7,591
California Statewide Community Dev. Auth. Rev. (Catholic Healthcare West) 6.50% 7/1/2020 8,000 8,640
California Statewide Community Dev. Auth. Rev.
(Henry Mayo Newhall Memorial Hosp.) 5.00% 10/1/2018 5,875 5,987
California Statewide Community Dev. Auth. Rev. (Irvine Apartments) PUT 5.10% 5/17/2010 3,225 3,415
California Statewide Community Dev. Auth. Rev. (Irvine Apartments) PUT 5.25% 5/15/2013 7,000 7,272
41
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FACE MARKET
MATURITY AMOUNT VALUE*
CALIFORNIA LONG-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- ------------------------------------------------------------------------------------------------------------------------------
California Statewide Community Dev. Auth. Rev. (Kaiser Permanente) 5.50% 11/1/2032 $18,250 $18,574
California Statewide Community Dev. Auth. Rev.
(Los Angeles Orthopaedic Hosp. Foundation) 5.75% 6/1/2030 (2) 8,000 8,727
California Statewide Community Dev. Auth. Rev. (Memorial Health Services) 6.00% 10/1/2023 20,000 21,262
California Statewide Community Dev. Auth. Rev. (Sutter Health) 5.50% 8/15/2034 10,885 11,091
Capistrano CA Unified Public Schools Rev. 5.70% 9/1/2016 (2) 10,000 11,226
Central Coast California Water Auth. Rev. 5.00% 10/1/2016 (2) 6,850 7,361
Chino Basin CA Regional Financing Auth. Rev.
(Inland Empire Util. Agency Sewer) 5.75% 11/1/2019 (1) 3,325 3,802
Chino Basin CA Regional Financing Auth. Rev.
(Inland Empire Util. Agency Sewer) 5.75% 11/1/2022 (1) 1,000 1,128
Chino Basin CA Regional Financing Auth. Rev.
(Muni. Water Dist. Sewer System) 6.00% 8/1/2016 (2) 5,500 5,776
Clovis CA USD GO 0.00% 8/1/2007 (3)(ETM) 15,000 13,893
Clovis CA USD GO 0.00% 8/1/2008 (3)(ETM) 14,265 12,722
Clovis CA USD GO 0.00% 8/1/2009 (3)(ETM) 12,155 10,399
Clovis CA USD GO 0.00% 8/1/2009 (3)(ETM) 7,570 6,477
Clovis CA USD GO 0.00% 8/1/2010 (3)(ETM) 21,485 17,466
Clovis CA USD GO 0.00% 8/1/2011 (3)(ETM) 1,625 1,247
Clovis CA USD GO 0.00% 8/1/2013 (3) 4,935 3,319
Clovis CA USD GO 0.00% 8/1/2015 (3) 2,770 1,657
Clovis CA USD GO 0.00% 8/1/2016 (3) 2,865 1,616
Clovis CA USD GO 0.00% 8/1/2018 (3) 3,645 1,822
Contra Costa CA Water Dist. Rev. 5.50% 10/1/2004 (1)(Prere.) 3,000 3,170
Culver City CA Wastewater Fac. Rev. 5.70% 9/1/2029 (3) 5,000 5,550
East Bay CA Muni. Util. Dist. Water System Rev. 6.50% 6/1/2004 (2)(Prere.) 2,000 2,095
East Bay CA Muni. Util. Dist. Water System Rev. 5.25% 6/1/2018 4,000 4,438
Eastern California Muni. Water. Dist. Water & Sewer Rev. 6.75% 7/1/2012 (3) 8,500 10,372
Elsinore Valley CA Muni. Water Dist. COP 6.00% 7/1/2012 (3) 2,210 2,614
Escondido CA Union High School Dist. 0.00% 11/1/2020 (1) 4,000 1,746
Evergreen CA School Dist. GO 5.625% 9/1/2004 (3) 6,300 6,908
Foothill/Eastern Corridor Agency California Toll Road Rev. 5.00% 1/15/2016 (1) 8,400 8,942
Foothill/Eastern Corridor Agency California Toll Road Rev. 5.125% 1/15/2019 (1) 5,200 5,503
Foothill/Eastern Corridor Agency California Toll Road Rev. 0.00% 1/15/2026 10,000 7,345
Foothill/Eastern Corridor Agency California Toll Road Rev. 0.00% 1/15/2028 (1) 15,000 12,049
Foothill/Eastern Corridor Agency California Toll Road Rev. 0.00% 1/15/2033 10,000 1,774
Foothill/Eastern Corridor Agency California Toll Road Rev. 0.00% 1/15/2034 10,000 1,667
Foothill/Eastern Corridor Agency California Toll Road Rev. 5.75% 1/15/2040 (1) 12,000 13,410
Foothill-De Anza CA Community College Dist. GO 0.00% 8/1/2017 (1) 3,000 1,591
Foothill-De Anza CA Community College Dist. GO 0.00% 8/1/2022 (1) 3,850 1,488
Foothill-De Anza CA Community College Dist. GO 6.00% 8/1/2022 5,590 6,665
Foothill-De Anza CA Community College Dist. GO 0.00% 8/1/2023 (1) 3,590 1,297
Foothill-De Anza CA Community College Dist. GO 0.00% 8/1/2025 (1) 2,390 759
Fresno CA Airport Rev. 5.50% 7/1/2030 (4) 1,500 1,612
Fullerton Univ. California Rev. 5.70% 7/1/2020 (1) 2,165 2,447
Golden State Tobacco Securitization Corp. California 5.375% 6/1/2028 25,000 246
Hartnell CA Community College District GO 5.00% 8/1/2019 (1) 1,550 1,646
Hartnell CA Community College District GO 5.00% 8/1/2020 (1) 1,735 1,832
42
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FACE MARKET
MATURITY AMOUNT VALUE*
CALIFORNIA LONG-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- ------------------------------------------------------------------------------------------------------------------------------
Hartnell CA Community College District GO 5.00% 8/1/2023 (1) $2,370 $2,453
Helix CA Water Dist. COP 5.00% 4/1/2019 (4) 4,250 4,479
Kern CA Community College Dist. GO 5.00% 11/1/2019 (3) 3,085 3,281
Kern CA Community College Dist. GO 5.00% 11/1/2020 (3) 3,655 3,863
Kern CA High School Dist. GO 6.25% 8/1/2011 (1)(ETM) 1,065 1,293
Kern CA High School Dist. GO 6.40% 8/1/2014 (1)(ETM) 1,490 1,844
Kern CA High School Dist. GO 6.40% 8/1/2015 (1)(ETM) 1,645 2,040
Kern CA High School Dist. GO 6.40% 8/1/2016 (1)(ETM) 1,815 2,251
La Mesa-Spring Valley CA School Dist. GO 5.375% 8/1/2018 (3) 1,570 1,723
La Mesa-Spring Valley CA School Dist. GO 5.375% 8/1/2019 (3) 1,775 1,937
La Mesa-Spring Valley CA School Dist. GO 5.375% 8/1/2020 (3) 2,000 2,172
La Mesa-Spring Valley CA School Dist. GO 5.375% 8/1/2021 (3) 1,890 2,041
Long Beach CA Finance Auth. Lease Rev. (Aquarium of the South Pacific) 5.50% 11/1/2013 (2) 3,680 4,147
Long Beach CA Finance Auth. Lease Rev. (Aquarium of the South Pacific) 5.50% 11/1/2018 (2) 4,675 5,228
Long Beach CA Finance Auth. Lease Rev. (Rainbow Harbor) 5.125% 5/1/2020 (2) 5,500 5,837
Long Beach CA Finance Auth. Lease Rev. (Temple & Willis Fac.) 5.50% 10/1/2018 (1) 5,030 5,628
Long Beach CA Harbor Rev. 5.50% 5/15/2009 8,540 9,611
Long Beach CA Harbor Rev. 6.00% 5/15/2011 (3) 3,695 4,279
Long Beach CA Harbor Rev. 6.00% 5/15/2017 (3) 1,200 1,416
Los Angeles CA Community College Dist. GO 5.50% 8/1/2018 (1) 8,810 9,839
Los Angeles CA Dept. of Water & Power Rev. 5.00% 10/15/2018 (1) 11,600 12,314
Los Angeles CA Dept. of Water & Power Rev. 5.25% 7/1/2019 6,730 7,159
Los Angeles CA Dept. of Water & Power Rev. 5.25% 7/1/2021 (4) 2,830 3,029
Los Angeles CA Dept. of Water & Power Rev. 5.00% 7/1/2043 (3) 5,000 5,073
Los Angeles CA Dept. of Water & Power Rev. VRDO 1.11% 12/1/2003 5,500 5,500
Los Angeles CA Dept. of Water & Power Rev. VRDO 1.05% 12/8/2003 2,600 2,600
Los Angeles CA Dept. of Water & Power Rev. VRDO 1.10% 12/8/2003 8,000 8,000
Los Angeles CA Harbor Dept. Rev. 5.50% 8/1/2017 (2) 3,095 3,333
Los Angeles CA Harbor Dept. Rev. 5.50% 8/1/2019 (2) 5,975 6,379
Los Angeles CA Harbor Dept. Rev. 5.50% 8/1/2020 (2) 9,455 10,037
Los Angeles CA USD GO 6.00% 7/1/2010 (3) 5,250 6,227
Los Angeles CA USD GO 5.25% 7/1/2014 (1)(Prere.)12,715 14,261
Los Angeles County CA Metro. Transp. Auth. Sales Tax Rev. 5.25% 7/1/2016 (1) 7,200 8,233
Los Angeles County CA Metro. Transp. Auth. Sales Tax Rev. 5.25% 7/1/2017 (1) 7,700 8,413
Los Angeles County CA Metro. Transp. Auth. Sales Tax Rev. 5.00% 7/1/2019 (4) 6,170 6,506
Los Angeles County CA Public Works Financing Auth. Rev. 5.50% 10/1/2012 4,500 5,059
Los Angeles County CA Public Works Financing Auth. Rev. 5.00% 10/1/2016 (1) 8,540 9,177
Los Angeles County CA Public Works Financing Auth. Rev. 5.125% 6/1/2017 (2) 6,865 7,411
Los Angeles County CA Public Works Financing Auth. Rev. 5.50% 10/1/2018 (4) 2,700 3,104
Los Angeles County CA Public Works Financing Auth. Rev. 5.25% 5/1/2002 (2) 4,700 4,992
Los Angeles County CA Public Works Financing Auth. Rev. 5.125% 12/1/2029 (2) 16,000 16,411
Los Angeles County CA Schools COP 0.00% 8/1/2014 (2) 1,000 633
Los Angeles County CA Schools COP 0.00% 8/1/2020 (2) 2,095 921
Metro. Water Dist. of Southern California Rev. 5.50% 7/1/2005 (1)(Prere.)21,225 23,047
Metro. Water Dist. of Southern California Rev. 8.00% 7/1/2008 (ETM) 2,000 2,501
Metro. Water Dist. of Southern California Rev. VRDO 1.05% 12/8/2003 (2) 2,430 2,430
Modesto CA High School Dist. GO 0.00% 8/1/2015 (3) 5,000 2,991
43
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FACE MARKET
MATURITY AMOUNT VALUE*
CALIFORNIA LONG-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- ------------------------------------------------------------------------------------------------------------------------------
Modesto CA High School Dist. GO 0.00% 8/1/2017 (3) $3,000 $1,591
Modesto CA High School Dist. GO 0.00% 8/1/2018 (3) 3,225 1,612
Modesto CA Irrigation Dist. COP 5.00% 7/1/2019 (1) 3,475 3,684
Modesto CA Irrigation Dist. COP 5.00% 7/1/2020 (1) 2,175 2,292
Modesto CA Irrigation Dist. Finance Auth. Rev. (Domestic Water Project) 5.75% 9/1/2005 (2)(Prere.) 3,750 4,112
Modesto CA Irrigation Dist. Finance Auth. Rev. (Woodland Project) 6.50% 10/1/2011 (2)(ETM) 8,125 9,694
Modesto CA Irrigation Dist. Finance Auth. Rev. (Woodland Project) 6.50% 10/1/2022 (2)(ETM) 9,750 12,152
Monterey Park CA Redev. Agency Tax Allocation 5.00% 9/1/2016 (4) 1,010 1,241
Monterey Park CA Redev. Agency Tax Allocation 5.00% 9/1/2017 (4) 1,060 1,034
Monterey Park CA Redev. Agency Tax Allocation 5.00% 9/1/2018 (4) 1,115 1,186
Monterey Park CA Redev. Agency Tax Allocation 5.00% 9/1/2019 (4) 1,120 1,184
Monterey Park CA Redev. Agency Tax Allocation 5.00% 9/1/2020 (4) 1,180 1,241
MSR California Public Power Agency (San Juan Project) 6.125% 7/1/2013 (2) 8,000 9,590
MSR California Public Power Agency (San Juan Project) 6.75% 7/1/2020 (1)(ETM) 38,145 47,203
MSR California Public Power Agency (San Juan Project) VRDO 1.07% 12/1/2003 (1) 6,500 6,500
Natomas CA USD 5.20% 9/1/2019 (3) 5,000 5,386
New Haven CA USD GO 12.00% 8/1/2016 (4) 2,480 4,334
New Haven CA USD GO 12.00% 8/1/2017 (4) 1,500 2,669
Newark CA USD GO 0.00% 8/1/2011 (4) 1,670 1,264
Newark CA USD GO 0.00% 8/1/2012 (4) 1,820 1,295
Newark CA USD GO 0.00% 8/1/2013 (4) 2,050 1,379
Newport Beach CA Rev. (Hoag Memorial Hosp.) VRDO 1.02% 12/1/2003 5,000 5,000
North City West CA School Fac. Finance Auth. 6.00% 9/1/2019 (4) 2,000 2,264
North Orange County CA Community College Dist. GO 5.375% 8/1/2017 (1) 5,080 5,639
Northern California Power Agency (Hydroelectric Project) 6.30% 7/1/2018 (1) 10,000 12,246
Northern California Power Agency (Hydroelectric Project) 7.50% 7/1/2021 (2)(Prere.) 1,810 2,443
Oakland CA Joint Powers Financing Auth. Lease Rev.
(Oakland Convention Center) 5.50% 10/1/2012 (2) 3,545 4,077
Oakland CA Redev. Agency (Central Dist.) 5.50% 2/1/2014 (2) 5,500 6,324
Oakland CA Redev. Agency Tax Allocation (Coliseum Area) 5.25% 9/1/2027 2,380 2,416
Oakland CA Redev. Agency Tax Allocation (Coliseum Area) 5.25% 9/1/2033 3,730 3,779
Oceanside CA Community Dev. Comm. Multifamily Rental Housing Rev. PUT 4.45% 4/1/2011 4,260 4,445
Orange County CA Sanitation Dist. COP VRDO 1.07% 12/1/2003 3,295 3,295
Palmdale CA COP 5.25% 9/1/2019 (1) 1,310 1,432
Palmdale CA COP 5.25% 9/1/2020 (1) 1,450 1,575
Palmdale CA COP 5.25% 9/1/2021 (1) 1,605 1,734
Palmdale CA COP 5.25% 9/1/2022 (1) 1,765 1,894
Palo Alto CA Improvement Rev. (Univ. Avenue Area Parking) 5.70% 9/2/2018 1,000 1,021
Palo Alto CA Improvement Rev. (Univ. Avenue Area Parking) 5.70% 9/2/2019 1,000 1,021
Palo Alto CA Improvement Rev. (Univ. Avenue Area Parking) 5.75% 9/2/2020 1,000 1,021
Palo Alto CA Improvement Rev. (Univ. Avenue Area Parking) 5.75% 9/2/2026 5,000 5,102
Palomar Pomerado Health System California Rev. 5.375% 11/1/2011 (1) 3,865 4,291
Palomar Pomerado Health System California Rev. 5.375% 11/1/2013 (1) 6,730 7,329
Paramount CA Redev. Agency Tax Allocation 5.00% 8/1/2019 (1) 2,500 2,641
Paramount CA Redev. Agency Tax Allocation 5.00% 8/1/2020 (1) 2,500 2,625
Pittsburg CA Redev. Agency Tax Allocation (Los Medanos Community Dev.) 0.00% 8/1/2019 (2) 1,150 538
44
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FACE MARKET
MATURITY AMOUNT VALUE*
CALIFORNIA LONG-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- ------------------------------------------------------------------------------------------------------------------------------
Pittsburg CA Redev. Agency Tax Allocation (Los Medanos Community Dev.) 0.00% 8/1/2021 (2) $2,575 $1,060
Pittsburg CA Redev. Agency Tax Allocation (Los Medanos Community Dev.) 0.00% 8/1/2022 (2) 3,755 1,443
Pittsburg CA Redev. Agency Tax Allocation (Los Medanos Community Dev.) 0.00% 8/1/2024 (2) 1,000 336
Pittsburg CA Redev. Agency Tax Allocation (Los Medanos Community Dev.) 5.70% 8/1/2032 (4) 7,000 7,742
Pomona CA USD GO 5.60% 8/1/2014 (1)(ETM) 1,585 1,850
Pomona CA USD GO 5.60% 8/1/2015 (1)(ETM) 2,000 2,331
Pomona CA USD GO 5.60% 8/1/2016 (1)(ETM) 1,000 1,161
Pomona CA USD GO 7.50% 8/1/2017 (1)(ETM) 2,540 3,427
Port of Oakland CA Rev. 5.625% 11/1/2011 (3) 9,260 10,329
Port of Oakland CA Rev. 5.40% 11/1/2017 (1) 16,705 18,563
Port of Oakland CA Rev. 5.50% 11/1/2017 (1) 4,350 4,684
Port of Oakland CA Rev. 5.60% 11/1/2019 (1) 22,280 25,098
Rancho CA Water Dist. Finance Auth. Rev. 5.875% 11/1/2010 (3) 3,585 3,948
Rancho CA Water Dist. Finance Auth. Rev. PUT 3.00% 8/1/2004 (3) 10,000 10,120
Rancho Mirage CA Redev. Agency Tax Allocation 5.125% 4/1/2021 (1) 2,650 2,794
Rancho Mirage CA Redev. Agency Tax Allocation 5.25% 4/1/2026 (1) 2,905 3,047
Rancho Mirage CA Redev. Agency Tax Allocation 5.25% 4/1/2033 (1) 3,000 3,136
Riverside County CA Asset Leasing Corp. Leasehold Rev.
(Riverside County Hosp.) 0.00% 6/1/2013 (1) 5,000 3,362
Riverside County CA Asset Leasing Corp. Leasehold Rev.
(Riverside County Hosp.) 0.00% 6/1/2014 (1) 2,000 1,269
Riverside County CA Asset Leasing Corp. Leasehold Rev.
(Riverside County Hosp.) 0.00% 6/1/2015 (1) 2,000 1,194
Sacramento CA Financing Auth. Lease Rev. 5.375% 11/1/2014 (2) 9,750 11,150
Sacramento CA Financing Auth. Lease Rev. 5.40% 11/1/2020 (2) 6,785 7,649
Sacramento CA Muni. Util. Dist. Rev. 6.25% 8/15/2010 (1)(ETM) 33,800 40,547
Sacramento CA Muni. Util. Dist. Rev. 5.80% 7/1/2019 (2) 6,000 7,067
Sacramento CA Muni. Util. Dist. Rev. 5.90% 7/1/2020 (2) 15,850 18,835
Sacramento County CA Airport Rev. 5.25% 7/1/2018 (4) 2,305 2,504
Sacramento County CA Airport Rev. 5.25% 7/1/2018 (4) 1,295 1,367
Sacramento County CA Public Fac. Finance Corp. COP (Main Detention Fac.) 5.50% 6/1/2010 (1)(ETM) 5,760 6,511
San Bernardino CA Multifamily Housing Rev.
(Alta Park Mountain Vista Apartments) PUT 4.45% 5/1/2011 7,000 7,306
San Bernardino County CA Medical Center COP 5.50% 8/1/2005 (1)(Prere.)12,790 13,929
San Bernardino County CA Medical Center COP 6.50% 8/1/2017 (1) 17,915 22,356
San Diego CA USD GO 0.00% 7/1/2015 (3) 5,370 3,224
San Diego CA USD GO 0.00% 7/1/2016 (3) 4,565 2,584
San Diego CA USD GO 0.00% 7/1/2018 (3) 9,500 4,768
San Diego CA Water Auth. Rev. COP 5.25% 5/1/2015 (3) 14,290 15,722
San Diego CA Water Auth. Rev. COP 5.00% 5/1/2017 2,300 2,453
San Diego County CA COP 5.25% 10/1/2021 1,485 1,556
San Diego County CA COP 5.25% 10/1/2028 2,745 2,823
San Diego County CA COP 5.375% 10/1/2041 8,545 8,827
San Francisco CA Bay Area Rapid Transit Rev. 6.75% 7/1/2010 (2) 6,370 7,810
San Francisco CA Bay Area Rapid Transit Rev. 6.75% 7/1/2011 (2) 7,455 9,203
San Francisco CA Building Auth. Rev. (Civic Center Complex) 5.25% 12/1/2016 (2) 22,575 24,837
45
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FACE MARKET
MATURITY AMOUNT VALUE*
CALIFORNIA LONG-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- ------------------------------------------------------------------------------------------------------------------------------
San Francisco CA City & County Finance Corp. Lease Rev.
(Moscone Center Expansion) VRDO 1.05% 12/8/2003 (2) $8,900 $8,900
San Francisco CA City & County International Airport Rev. 5.25% 5/1/2016 (1) 4,305 4,722
San Francisco CA City & County International Airport Rev. 5.25% 5/1/2018 (1) 4,770 5,175
San Francisco CA City & County International Airport Rev. 5.25% 5/1/2019 (1) 5,020 5,416
San Francisco CA City & County International Airport Rev. 5.125% 5/1/2020 (1) 6,320 6,514
San Joaquin Hills CA Transp. Corridor Agency Toll Road Rev. 0.00% 1/15/2021 (1) 12,385 5,244
San Joaquin Hills CA Transp. Corridor Agency Toll Road Rev. 0.00% 1/15/2024 (1) 15,000 5,192
San Joaquin Hills CA Transp. Corridor Agency Toll Road Rev. 0.00% 1/15/2025 (1) 18,250 5,932
San Joaquin Hills CA Transp. Corridor Agency Toll Road Rev. 0.00% 1/15/2030 (1) 7,000 1,700
San Joaquin Hills CA Transp. Corridor Agency Toll Road Rev. 0.00% 1/15/2031 (1) 11,950 2,742
San Jose CA Redev. Agency 6.00% 8/1/2011 (1) 8,845 10,469
San Jose CA Redev. Agency 5.00% 8/1/2018 (1) 1,525 1,615
San Jose CA USD GO 0.00% 8/1/2013 (4) 2,220 1,493
San Jose CA USD GO 0.00% 8/1/2014 (4) 2,610 1,657
San Jose CA USD GO 0.00% 8/1/2016 (4) 2,000 1,128
San Jose CA USD GO 0.00% 8/1/2018 (4) 1,785 892
San Jose CA USD GO 0.00% 8/1/2019 (4) 2,210 1,040
San Jose CA USD GO 0.00% 8/1/2020 (4) 4,930 2,178
San Marcos Public Fac. Auth. Tax Allocation 5.00% 8/1/2021 (3) 1,325 1,383
San Marcos Public Fac. Auth. Tax Allocation 5.00% 8/1/2022 (3) 2,295 2,386
San Marcos Public Fac. Auth. Tax Allocation 5.00% 8/1/2026 (3) 2,360 2,418
San Marcos Public Fac. Auth. Tax Allocation 5.00% 8/1/2033 (3) 3,820 3,893
San Mateo CA Redev. Auth. Tax Allocation 5.40% 8/1/2019 2,575 2,739
San Mateo CA Redev. Auth. Tax Allocation 5.40% 8/1/2020 1,000 1,058
San Mateo CA Redev. Auth. Tax Allocation 5.50% 8/1/2021 2,635 2,799
San Mateo County CA Community College Dist. GO 5.00% 9/1/2021 (3) 1,000 1,045
San Mateo County CA Finance Auth. Rev. 6.50% 7/1/2013 (1) 14,560 17,808
San Mateo County CA Joint Powers Auth. Lease Rev. 5.00% 7/1/2021 (1) 3,500 3,773
San Mateo County CA Transp. Dist. Sales Tax Rev. 5.25% 6/1/2015 (4) 4,525 4,981
San Ramon Valley CA USD GO 0.00% 7/1/2009 (3) 4,895 4,158
San Ramon Valley CA USD GO 0.00% 7/1/2010 (3) 7,050 5,682
San Ramon Valley CA USD GO 0.00% 7/1/2012 (3) 6,645 4,744
San Ramon Valley CA USD GO 0.00% 7/1/2013 (3) 7,430 5,015
San Ramon Valley CA USD GO 0.00% 7/1/2014 (3) 8,290 5,283
San Ramon Valley CA USD GO 0.00% 7/1/2015 (3) 5,605 3,365
Santa Ana CA Finance Auth. Rev. 6.25% 7/1/2016 (1) 5,345 6,525
Santa Ana CA Finance Auth. Rev. 6.25% 7/1/2017 (1) 2,000 2,449
Santa Clara CA Electric Rev. 5.25% 7/1/2019 (1) 2,200 2,393
Santa Clara CA Electric Rev. 5.25% 7/1/2020 (1) 1,550 1,676
Santa Clara CA Electric Rev. 5.00% 7/1/2021 (1) 4,895 5,134
Santa Clara CA Redev. Agency (Bayshore North) 7.00% 7/1/2010 (2) 7,000 8,425
Santa Clara CA Redev. Agency (Bayshore North) 5.00% 6/1/2019 (1) 1,000 1,056
Santa Clara CA Redev. Agency (Bayshore North) 5.00% 6/1/2021 (1) 1,000 1,043
Santa Clara County CA Financing Auth. Lease Rev. 5.50% 5/15/2013 (2) 5,050 5,659
Santa Clara County CA Financing Auth. Lease Rev. 5.50% 5/15/2014 (2) 5,325 5,967
Santa Clara County CA Financing Auth. Lease Rev. 5.50% 5/15/2015 (2) 5,620 6,298
Santa Monica-Malibu CA USD Rev. 0.00% 8/1/2020 (3) 6,715 2,966
Santa Rosa CA Waste Water Rev. 6.00% 7/2/2015 (2) 7,000 8,375
Santa Rosa CA Waste Water Rev. 6.00% 9/1/2015 (3) 5,580 6,700
Solano County CA COP 5.25% 11/1/2019 (1) 3,785 4,090
46
- ------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
CALIFORNIA LONG-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- ------------------------------------------------------------------------------------------------------------------------------
Solano County CA COP 5.25% 11/1/2021 (1) $3,770 $4,030
South Orange County CA Public Finance Auth. Rev. 9.50% 8/15/2004 (3) 3,000 3,175
South Orange County CA Public Finance Auth. Rev. 7.00% 9/1/2011 (1) 3,000 3,761
Southern California Public Power Auth. Rev. (Transmission Project) 5.75% 7/1/2021 (1) 220 223
Southern California Public Power Auth. Rev. (Transmission Project) VRDO 1.05% 12/8/2003 (2)LOC 5,285 5,285
Southern California Public Power Auth. Rev. (Transmission Project) VRDO 1.07% 12/8/2003 (4) 5,400 5,400
Southern California Public Power Auth. Rev. (Transmission Project) VRDO 1.10% 12/8/2003 (4) 3,600 3,600
Torrance CA Hospital Rev. (Torrance Memorial Medical Center) 6.00% 6/1/2022 1,100 1,205
Torrance CA Hospital Rev. (Torrance Memorial Medical Center) 5.50% 6/1/2031 4,350 4,436
Ukiah CA Electric Rev. 6.00% 6/1/2008 (1) 4,565 5,303
Ukiah CA Electric Rev. 6.25% 6/1/2018 (1) 6,000 7,311
Union CA Elementary School Dist. GO 0.00% 9/1/2015 (3) 3,860 2,301
Union CA Elementary School Dist. GO 0.00% 9/1/2016 (3) 1,500 843
Union CA Elementary School Dist. GO 0.00% 9/1/2017 (3) 2,295 1,213
Union CA Elementary School Dist. GO 0.00% 9/1/2018 (3) 1,630 812
Union CA Elementary School Dist. GO 0.00% 9/1/2019 (3) 1,750 820
Union CA Elementary School Dist. GO 0.00% 9/1/2020 (3) 2,300 1,013
Union CA Elementary School Dist. GO 0.00% 9/1/2021 (3) 2,000 824
Univ. of California Rev. (Medical Center) 5.75% 7/1/2006 (2)(Prere.)10,395 11,594
Univ. of California Rev. (Medical Center) 5.75% 7/1/2006 (2)(Prere.)12,160 13,563
Univ. of California Rev. (San Diego Medical Center) 5.13% 12/1/2018 (4) 3,695 3,921
Univ. of California Rev. (San Diego Medical Center) 5.13% 12/1/2019 (4) 3,000 3,153
Vallejo CA Sanitation & Flood Control COP 5.00% 7/1/2019 (3) 5,000 5,418
Walnut Valley CA USD 6.20% 8/1/2009 (2)(ETM) 1,270 1,517
Walnut Valley CA USD 6.00% 8/1/2012 (2)(ETM)* 1,790 2,140
Walnut Valley CA USD 6.00% 8/1/2013 (2)(ETM)* 1,980 2,377
Walnut Valley CA USD 6.00% 8/1/2014 (2)(ETM) 2,205 2,651
Walnut Valley CA USD 6.00% 8/1/2015 (2)(ETM) 2,470 2,971
Walnut Valley CA USD 6.00% 8/1/2016 (2)(ETM) 2,690 3,230
Whittier CA Insured Health Fac. Rev. (Presbyterian Hosp.) 6.25% 6/1/2007 (1) 4,260 4,873
Whittier CA Insured Health Fac. Rev. (Presbyterian Hosp.) 6.25% 6/1/2008 (1) 3,530 4,117
William S. Hart CA Union High School Dist. GO 5.00% 9/1/2022 (1) 1,120 1,167
Yuba City CA USD 0.00% 9/1/2015 (3) 1,870 1,115
Yuba City CA USD 0.00% 9/1/2017 (3) 2,060 1,089
Yuba City CA USD 0.00% 9/1/2019 (3) 2,270 1,063
OUTSIDE CALIFORNIA:
Guam International Airport Auth. Rev. 5.00% 10/1/2009 (1) 5,270 6,322
Puerto Rico GO 5.50% 7/1/2016 (1) 10,000 11,612
Puerto Rico GO 5.50% 7/1/2019 (4) 10,000 11,576
Puerto Rico GO 5.50% 7/1/2019 (2) 6,500 7,524
Puerto Rico Govt. Dev. Bank VRDO 1.01% 12/8/2003 (1) 5,500 5,500
Puerto Rico Highway & Transp. Auth. Rev. 5.25% 7/1/2010 5,000 5,562
Univ. of Puerto Rico Rev. 5.38% 6/1/2030 (1) 14,795 15,556
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(COST $1,820,134) 1,985,791
- ------------------------------------------------------------------------------------------------------------------------------
47
- --------------------------------------------------------------------------------
MARKET
VALUE*
CALIFORNIA LONG-TERM TAX-EXEMPT FUND (000)
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (0.4%)
- --------------------------------------------------------------------------------
Other Assets--Note B $26,462
Liabilities (19,445)
---------
7,017
- --------------------------------------------------------------------------------
NET ASSETS (100%) $1,992,808
================================================================================
*See Note A in NOTES TO FINANCIAL STATEMENTS.
*Security segregated as initial margin for open futures contracts.
+Security purchased on a when-issued or delayed delivery basis for which the
fund has not taken delivery as of November 30, 2003. For key to abbreviations
and other references, see page 49.
- --------------------------------------------------------------------------------
AT NOVEMBER 30, 2003, NET ASSETS CONSISTED OF:
- --------------------------------------------------------------------------------
AMOUNT
(000)
- --------------------------------------------------------------------------------
Paid-in Capital $1,825,124
Undistributed Net Investment Income --
Accumulated Net Realized Gains 912
Unrealized Appreciation
Investment Securities 165,657
Futures Contracts 1,115
- --------------------------------------------------------------------------------
NET ASSETS $1,992,808
================================================================================
Investor Shares--Net Assets
Applicable to 107,185,780 outstanding $.001 par value shares
of beneficial interest (unlimited authorization) $1,286,135
- --------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE--INVESTOR SHARES $12.00
================================================================================
Admiral Shares--Net Assets
Applicable to 58,893,762 outstanding $.001 par value shares
of beneficial interest (unlimited authorization) $706,673
- --------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE--ADMIRAL SHARES $12.00
================================================================================
See Note D in NOTES TO FINANCIAL STATEMENTS for the tax-basis components of net
assets.
48
KEY TO ABBREVIATIONS
BAN--BOND ANTICIPATION NOTE.
COP--CERTIFICATE OF PARTICIPATION.
CP--COMMERCIAL PAPER.
FR--FLOATING RATE.
GAN--GRANT ANTICIPATION NOTE.
GO--GENERAL OBLIGATION BOND.
IDA--INDUSTRIAL DEVELOPMENT AUTHORITY BOND.
IDR--INDUSTRIAL DEVELOPMENT REVENUE BOND.
PCR--POLLUTION CONTROL REVENUE BOND.
PUT--PUT OPTION OBLIGATION.
RAN--REVENUE ANTICIPATION NOTE.
TAN--TAX ANTICIPATION NOTE.
TOB--TENDER OPTION BOND.
TRAN--TAX REVENUE ANTICIPATION NOTE.
UFSD--UNION FREE SCHOOL DISTRICT.
USD--UNITED SCHOOL DISTRICT.
VRDO--VARIABLE RATE DEMAND OBLIGATION.
(ETM)--ESCROWED TO MATURITY.
(PRERE.)--PREREFUNDED.
SCHEDULED PRINCIPAL AND INTEREST PAYMENTS ARE GUARANTEED BY:
(1) MBIA (MUNICIPAL BOND INSURANCE ASSOCIATION).
(2) AMBAC (AMBAC ASSURANCE CORPORATION).
(3) FGIC (FINANCIAL GUARANTY INSURANCE COMPANY).
(4) FSA (FINANCIAL SECURITY ASSURANCE).
(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.
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.
49
STATEMENT OF OPERATIONS
This Statement shows interest income earned by each fund during the reporting
period, and details the operating expenses charged to each class of its shares.
These expenses directly reduce the amount of investment income available to pay
to shareholders as tax-exempt income dividends. This Statement also shows any
NET GAIN (LOSS) realized on the sale of investments, and the increase or
decrease in the UNREALIZED APPRECIATION (DEPRECIATION) of investments during the
period. For money market funds, REALIZED NET GAIN (LOSS) should always be
minimal, and UNREALIZED APPRECIATION (DEPRECIATION) should be zero.
- ------------------------------------------------------------------------------------------------
CALIFORNIA CALIFORNIA CALIFORNIA
TAX-EXEMPT INTERMEDIATE-TERM LONG-TERM
MONEY MARKET TAX-EXEMPT TAX-EXEMPT
FUND FUND FUND
- ------------------------------------------------------------------------------------------------
YEAR ENDED NOVEMBER 30, 2003
- ------------------------------------------------------------------------------------------------
(000) (000) (000)
- ------------------------------------------------------------------------------------------------
INVESTMENT INCOME
INCOME
Interest $40,766 $106,559 $96,873
- ------------------------------------------------------------------------------------------------
Total Income 40,766 106,559 96,873
- ------------------------------------------------------------------------------------------------
EXPENSES
The Vanguard Group--Note B
Investment Advisory Services 535 369 296
Management and Administrative
Investor Shares 5,074 2,171 1,844
Admiral Shares -- 841 579
Marketing and Distribution
Investor Shares 698 299 200
Admiral Shares -- 134 78
Custodian Fees 28 34 27
Auditing Fees 10 15 15
Shareholders' Reports and Proxies
Investor Shares 40 21 30
Admiral Shares -- 2 4
Trustees' Fees and Expenses 4 3 2
- ------------------------------------------------------------------------------------------------
Total Expenses 6,389 3,889 3,075
Expenses Paid Indirectly--Note C -- (198) (64)
- ------------------------------------------------------------------------------------------------
Net Expenses 6,389 3,691 3,011
- ------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 34,377 102,868 93,862
- ------------------------------------------------------------------------------------------------
REALIZED NET GAIN (LOSS)
Investment Securities Sold 65 23,048 12,796
Futures Contracts -- (6,150) 1,825
- ------------------------------------------------------------------------------------------------
REALIZED NET GAIN (LOSS) 65 16,898 14,621
- ------------------------------------------------------------------------------------------------
CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION)
Investment Securities -- 21,727 28,544
Futures Contracts -- 2,116 707
- ------------------------------------------------------------------------------------------------
CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) -- 23,843 29,251
- ------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $34,442 $143,609 $137,734
================================================================================================
50
STATEMENT OF CHANGES IN NET ASSETS
This Statement shows how each fund's total net assets changed during the two
most recent reporting periods. The OPERATIONS section summarizes information
detailed in the Statement of Operations. Because the fund distributes its income
to shareholders each day, the amounts of DISTRIBUTIONS--NET INVESTMENT INCOME
generally equal the net income earned as shown under the OPERATIONS section. The
amounts of DISTRIBUTIONS--REALIZED CAPITAL GAIN may not match the capital gains
shown in the OPERATIONS section, because distributions are determined on a tax
basis and may be made in a period different from the one in which the gains were
realized on the financial statements. The CAPITAL SHARE TRANSACTIONS section
shows the net amount shareholders invested in or redeemed from the fund.
DISTRIBUTIONS and CAPITAL SHARE TRANSACTIONS are shown separately for each class
of shares.
- --------------------------------------------------------------------------------
CALIFORNIA CALIFORNIA
TAX-EXEMPT INTERMEDIATE-TERM
MONEY MARKET FUND TAX-EXEMPT FUND
---------------------------------------
YEAR ENDED NOVEMBER 30,
---------------------------------------
2003 2002 2003 2002
(000) (000) (000) (000)
- --------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net Investment Income $34,377 $41,486 $102,868 $98,636
Realized Net Gain (Loss) 65 (31) 16,898 7,846
Change in Unrealized Appreciation
(Depreciation) -- -- 23,843 25,374
- --------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Resulting from Operations 34,442 41,455 143,609 131,856
- --------------------------------------------------------------------------------
DISTRIBUTIONS
Net Investment Income
Investor Shares (34,377) (41,486) (62,746) (65,518)
Admiral Shares -- -- (40,122) (33,118)
Realized Capital Gain
Investor Shares -- -- (5,453) --
Admiral Shares -- -- (3,297) --
- --------------------------------------------------------------------------------
Total Distributions (34,377) (41,486) (111,618) (98,636)
- --------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS--NOTE F
Investor Shares 372,633 819,847 (160,770) (36,852)
Admiral Shares -- -- (7,278) 491,731
- --------------------------------------------------------------------------------
Net Increase (Decrease) from
Capital Share Transactions 372,633 819,847 (168,048) 454,879
- --------------------------------------------------------------------------------
Total Increase (Decrease) 372,698 819,816 (136,057) 488,099
- --------------------------------------------------------------------------------
NET ASSETS
Beginning of Period 3,594,036 2,774,220 2,591,213 2,103,114
- --------------------------------------------------------------------------------
End of Period $3,966,734 $3,594,036 $2,455,156 $2,591,213
================================================================================
51
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------
CALIFORNIA
LONG-TERM
TAX-EXEMPT FUND
- --------------------------------------------------------------------------------
YEAR ENDED NOVEMBER 30,
- --------------------------------------------------------------------------------
2003 2002
(000) (000)
- --------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net Investment Income $ 93,862 $ 97,879
Realized Net Gain (Loss) 14,621 1,062
Change in Unrealized Appreciation (Depreciation) 29,251 9,614
- --------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Resulting from Operations 137,734 108,555
- --------------------------------------------------------------------------------
DISTRIBUTIONS
Net Investment Income
Investor Shares (61,519) (69,323)
Admiral Shares (32,343) (28,556)
Realized Capital Gain*
Investor Shares (2,566) --
Admiral Shares (1,253) --
- --------------------------------------------------------------------------------
Total Distributions (97,681) (97,879)
- --------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS--NOTE F
Investor Shares (189,962) (144,901)
Admiral Shares 22,887 267,356
- --------------------------------------------------------------------------------
Net Increase (Decrease) from Capital Share Transactions (167,075) 122,455
- --------------------------------------------------------------------------------
Total Increase (Decrease) (127,022) 133,131
- --------------------------------------------------------------------------------
NET ASSETS
Beginning of Period 2,119,830 1,986,699
- --------------------------------------------------------------------------------
End of Period $1,992,808 $2,119,830
================================================================================
*Includes short-term gain distributions totaling $36,000 and $0, respectively.
Short-term gain distributions are treated as ordinary income dividends for tax
purposes.
52
FINANCIAL HIGHLIGHTS
This table summarizes each fund's investment results and distributions to
shareholders on a per-share basis for each class of shares. It also presents the
TOTAL RETURN and shows net investment income and expenses as percentages of
average net assets. These data will help you assess: the variability of the
fund's net income and total returns from year to year; the relative
contributions of net income and capital gains to the fund's total return; how
much it costs to operate the fund; and the extent to which the fund tends to
distribute capital gains. The table also shows the PORTFOLIO TURNOVER RATE, a
measure of trading activity. A turnover rate of 100% means that the average
security is held in the fund for one year. Money market funds are not required
to report a PORTFOLIO TURNOVER RATE.
- --------------------------------------------------------------------------------
CALIFORNIA TAX-EXEMPT MONEY MARKET FUND
- --------------------------------------------------------------------------------
YEAR ENDED NOVEMBER 30,
- --------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD 2003 2002 2001 2000 1999
- --------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00
- --------------------------------------------------------------------------------
INVESTMENT OPERATIONS
Net Investment Income .009 .013 .025 .034 .027
Net Realized and Unrealized Gain (Loss)
on Investments -- -- -- -- --
- --------------------------------------------------------------------------------
Total from Investment Operations .009 .013 .025 .034 .027
- --------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from Net Investment Income (.009) (.013) (.025) (.034) (.027)
Distributions from Realized Capital Gains -- -- -- -- --
- --------------------------------------------------------------------------------
Total Distributions (.009) (.013) (.025) (.034) (.027)
- --------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00
================================================================================
TOTAL RETURN 0.91% 1.33% 2.57% 3.44% 2.79%
================================================================================
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (Millions) $3,967 $3,594 $2,774 $2,718 $2,286
Ratio of Total Expenses to
Average Net Assets 0.17% 0.17% 0.18% 0.17% 0.20%
Ratio of Net Investment Income to
Average Net Assets 0.90% 1.32% 2.54% 3.38% 2.75%
================================================================================
53
FINANCIAL HIGHLIGHTS (CONTINUED)
CALIFORNIA INTERMEDIATE-TERM TAX-EXEMPT FUND INVESTOR SHARES
- --------------------------------------------------------------------------------
YEAR ENDED NOVEMBER 30,
- --------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD 2003 2002 2001 2000 1999
- --------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $11.29 $11.12 $10.82 $10.50 $10.95
- --------------------------------------------------------------------------------
INVESTMENT OPERATIONS
Net Investment Income .454 .472 .493 .498 .480
Net Realized and Unrealized Gain (Loss)
on Investments .188 .170 .300 .320 (.450)
- --------------------------------------------------------------------------------
Total from Investment Operations .642 .642 .793 .818 .030
- --------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from Net Investment Income (.454) (.472) (.493) (.498) (.480)
Distributions from Realized Capital Gains (.038) -- -- -- --
- --------------------------------------------------------------------------------
Total Distributions (.492) (.472) (.493) (.498) (.480)
- --------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $11.44 $11.29 $11.12 $10.82 $10.50
================================================================================
TOTAL RETURN 5.78% 5.88% 7.44% 7.99% 0.27%
================================================================================
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (Millions) $1,490 $1,630 $1,646 $1,704 $1,336
Ratio of Total Expenses to
Average Net Assets 0.17% 0.17% 0.17% 0.17% 0.17%
Ratio of Net Investment Income to
Average Net Assets 3.99% 4.19% 4.44% 4.70% 4.48%
Portfolio Turnover Rate 21% 23% 23% 14% 9%
================================================================================
CALIFORNIA INTERMEDIATE-TERM TAX-EXEMPT FUND ADMIRAL SHARES
- --------------------------------------------------------------------------------
YEAR ENDED
NOVEMBER 30, NOV. 12* TO
---------------- NOV. 30,
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD 2003 2002 2001
- --------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $11.29 $11.12 $11.36
- --------------------------------------------------------------------------------
INVESTMENT OPERATIONS
Net Investment Income .461 .477 .024
Net Realized and Unrealized Gain (Loss)
on Investments .188 .170 (.240)
- --------------------------------------------------------------------------------
Total from Investment Operations .649 .647 (.216)
- --------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from Net Investment Income (.461) (.477) (.024)
Distributions from Realized Capital Gains (.038) -- --
- --------------------------------------------------------------------------------
Total Distributions (.499) (.477) (.024)
- --------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $11.44 $11.29 $11.12
================================================================================
TOTAL RETURN 5.84% 5.93% -1.90%
================================================================================
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (Millions) $966 $961 $458
Ratio of Total Expenses to Average Net Assets 0.11% 0.13% 0.12%**
Ratio of Net Investment Income to Average Net Assets 4.05% 4.21% 4.37%**
Portfolio Turnover Rate 21% 23% 23%
================================================================================
*Inception.
**Annualized.
54
CALIFORNIA LONG-TERM TAX-EXEMPT FUND INVESTOR SHARES
- --------------------------------------------------------------------------------
YEAR ENDED NOVEMBER 30,
- --------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD 2003 2002 2001 2000 1999
- --------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $11.76 $11.70 $11.40 $10.81 $11.73
- --------------------------------------------------------------------------------
INVESTMENT OPERATIONS
Net Investment Income .542 .554 .568 .576 .563
Net Realized and Unrealized Gain (Loss)
on Investments .261 .060 .300 .590 (.810)
- --------------------------------------------------------------------------------
Total from Investment Operations .803 .614 .868 1.166 (.247)
- --------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from Net Investment Income (.542) (.554) (.568) (.576) (.563)
Distributions from Realized Capital Gains (.021) -- -- -- (.110)
- --------------------------------------------------------------------------------
Total Distributions (.563) (.554) (.568) (.576) (.673)
- --------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $12.00 $11.76 $11.70 $11.40 $10.81
================================================================================
TOTAL RETURN 6.95% 5.36% 7.75% 11.11% -2.22%
================================================================================
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (Millions) $1,286 $1,449 $1,589 $1,735 $1,545
Ratio of Total Expenses to
Average Net Assets 0.17% 0.18% 0.18% 0.18% 0.18%
Ratio of Net Investment Income to
Average Net Assets 4.58% 4.72% 4.87% 5.23% 4.98%
Portfolio Turnover Rate 18% 27% 26% 27% 11%
================================================================================
CALIFORNIA LONG-TERM TAX-EXEMPT FUND ADMIRAL SHARES
- --------------------------------------------------------------------------------
YEAR ENDED
NOVEMBER 30, NOV. 12* TO
---------------- NOV. 30,
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD 2003 2002 2001
- --------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $11.76 $11.70 $11.99
- --------------------------------------------------------------------------------
INVESTMENT OPERATIONS
Net Investment Income .549 .560 .028
Net Realized and Unrealized Gain (Loss)
on Investments .261 .060 (.290)
- --------------------------------------------------------------------------------
Total from Investment Operations .810 .620 (.262)
- --------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from Net Investment Income (.549) (.560) (.028)
Distributions from Realized Capital Gains (.021) -- --
- --------------------------------------------------------------------------------
Total Distributions (.570) (.560) (.028)
- --------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $12.00 $11.76 $11.70
================================================================================
TOTAL RETURN 7.01% 5.41% -2.18%
================================================================================
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (Millions) $707 $670 $398
Ratio of Total Expenses to Average Net Assets 0.11% 0.13% 0.13%**
Ratio of Net Investment Income to Average Net Assets 4.64% 4.76% 4.85%**
Portfolio Turnover Rate 18% 27% 26%
================================================================================
*Inception.
**Annualized.
55
NOTES TO FINANCIAL STATEMENTS
Vanguard California Tax-Exempt Funds comprise the California Tax-Exempt Money
Market Fund, California Intermediate-Term Tax-Exempt Fund, and California
Long-Term Tax-Exempt Fund, each of which is registered under the Investment
Company Act of 1940 as an open-end investment company, or mutual fund. Each 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
of California.
The Intermediate-Term and Long-Term Tax-Exempt Funds each offer two classes of
shares, Investor Shares and Admiral Shares. Investor Shares are available to any
investor who meets the funds' minimum purchase requirements. Admiral Shares are
designed for investors who meet certain administrative, servicing, tenure, and
account-size criteria. The Tax-Exempt Money Market Fund offers only Investor
Shares.
A. The following significant accounting policies conform to generally accepted
accounting principles for U.S. mutual funds. The funds consistently follow such
policies in preparing their financial statements.
1. SECURITY VALUATION: Tax-Exempt Money Market Fund: Investment securities are
valued at amortized cost, which approximates market value. Other funds:
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 materially affected by
events occurring before the funds' 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 Intermediate-Term and Long-Term Tax-Exempt Funds may
use Municipal Bond Index, U.S. Treasury Bond, and U.S. Treasury Note
futures contracts, with the objectives of enhancing returns, managing
interest rate risk, maintaining liquidity, diversifying credit risk, and
minimizing transaction costs. The funds may purchase or sell futures
contracts instead of bonds to take advantage of pricing differentials
between the futures contracts and the underlying bonds. The funds may also
seek to take advantage of price differences among bond market sectors by
simultaneously buying futures (or bonds) of one market sector and selling
futures (or bonds) of another sector. Futures contracts may also be used to
simulate a fully invested position in the underlying bonds while
maintaining a cash balance for liquidity. The primary risks associated with
the use of futures contracts are imperfect correlation between changes in
market values of bonds held by the funds 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 financial
statements. 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: Each fund intends to continue to qualify as a
regulated investment company and distribute all of its income. Accordingly,
no provision for federal income taxes is required in the 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.
56
5. OTHER: 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.
Premiums and discounts are amortized and accreted, respectively, to
interest income over the lives of the respective securities.
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), shareholder reporting, and proxies. 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 each fund under methods approved by the board of
trustees. Each fund has committed to provide up to 0.40% of its net assets in
capital contributions to Vanguard. At November 30, 2003, the funds had
contributed capital to Vanguard (included in Other Assets) of:
- --------------------------------------------------------------------------------
CAPITAL CONTRIBUTION PERCENTAGE PERCENTAGE OF
TO VANGUARD OF FUND VANGUARD'S
CALIFORNIA TAX-EXEMPT FUND (000) NET ASSETS CAPITALIZATION
- --------------------------------------------------------------------------------
Money Market $638 0.02% 0.64%
Intermediate-Term 394 0.02 0.39
Long-Term 320 0.02 0.32
- --------------------------------------------------------------------------------
The funds' trustees and officers are also directors and officers of Vanguard.
C. The funds' investment advisor may direct new issue purchases, subject to
obtaining the best price and execution, to underwriters who have agreed to
rebate or credit to the funds part of the underwriting fees generated. Such
rebates or credits are used solely to reduce the funds' management and
administrative expenses. The funds' custodian bank has also agreed to reduce its
fees when the funds maintain cash on deposit in their non-interest-bearing
custody accounts. For the year ended November 30, 2003, these arrangements
reduced expenses by:
- ------------------------------------------------------------------------------
EXPENSE REDUCTION
(000) TOTAL EXPENSE
---------------------------- REDUCTION AS A
MANAGEMENT AND CUSTODIAN PERCENTAGE OF
CALIFORNIA TAX-EXEMPT FUND ADMINISTRATIVE FEES AVERAGE NET ASSETS
- ------------------------------------------------------------------------------
Intermediate-Term $197 $1 0.01%
Long-Term 62 2 --
- ------------------------------------------------------------------------------
D. 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.
57
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The Intermediate-Term Tax-Exempt and Long-Term Tax-Exempt Funds used a tax
accounting practice to treat a portion of the price of capital shares redeemed
during the year as distributions from realized capital gains. Accordingly, the
funds have reclassified $2,064,000 and $2,292,000, respectively, from
accumulated net realized gains to paid-in capital.
At November 30, 2003, the funds had the following tax-basis amounts
available for distribution:
- ----------------------------------------------------------
CAPITAL GAINS
AVAILABLE FOR DISTRIBUTION
---------------------------
SHORT-TERM LONG-TERM
CALIFORNIA TAX-EXEMPT FUND (000) (000)
- ----------------------------------------------------------
Intermediate-Term $10,010 $15,492
Long-Term 1,567 15,141
- ----------------------------------------------------------
Short-term gain distributions are treated as ordinary income dividends for tax
purposes.
The Intermediate-Term Tax-Exempt and the Long-Term Tax-Exempt Funds had
realized losses totaling $14,261,000 and $14,681,000, respectively, through
November 30, 2003, which are deferred for tax purposes and reduce the amount of
unrealized appreciation on investment securities for tax purposes.
At November 30, 2003, net unrealized appreciation of investment securities
for tax purposes was:
- --------------------------------------------------------------------------------
(000)
----------------------------------------
NET UNREALIZED
APPRECIATED DEPRECIATED APPRECIATION
CALIFORNIA TAX-EXEMPT FUND SECURITIES SECURITIES (DEPRECIATION)
- --------------------------------------------------------------------------------
Intermediate-Term $117,223 $(1,280) $115,943
Long-Term 151,473 (497) 150,976
- --------------------------------------------------------------------------------
At November 30, 2003, the aggregate settlement value of open futures
contracts expiring through March 2004 and the related unrealized appreciation
were:
- --------------------------------------------------------------------------------
(000)
-------------------------------------------
NUMBER OF AGGREGATE UNREALIZED
LONG (SHORT) SETTLEMENT APPRECIATION
CALIFORNIA TAX-EXEMPT FUND/FUTURES CONTRACTS CONTRACTS VALUE (DEPRECIATION)
- --------------------------------------------------------------------------------
Intermediate-Term
10-Year U.S. Treasury Note (2,100) $232,870 $3,188
Long-Term
10-Year U.S. Treasury Note (450) 49,901 683
30-Year U.S. Treasury Bond (300) 32,353 432
- --------------------------------------------------------------------------------
Unrealized appreciation on open futures contracts is required to be treated as
realized gain for tax purposes.
58
E. During the year ended November 30, 2003, purchases and sales of investment
securities other than temporary cash investments were:
- ---------------------------------------------------
(000)
- ---------------------------------------------------
CALIFORNIA TAX-EXEMPT FUND PURCHASES SALES
- ---------------------------------------------------
Intermediate-Term $510,682 $655,920
Long-Term 347,218 518,404
- ---------------------------------------------------
F. Capital share transactions for each class of shares were:
- ---------------------------------------------------------------------------------------------
YEAR ENDED NOVEMBER 30,
----------------------------------------------------
2003 2002
----------------------------------------------------
AMOUNT SHARES AMOUNT SHARES
CALIFORNIA TAX-EXEMPT FUND (000) (000) (000) (000)
- ---------------------------------------------------------------------------------------------
MONEY MARKET
Issued $3,411,353 3,411,353 $3,158,391 3,158,391
Issued in Lieu of Cash Distributions 32,133 32,133 39,060 39,060
Redeemed (3,070,853) (3,070,853) (2,377,604) (2,377,604)
----------------------------------------------------
Net Increase (Decrease) 372,633 372,633 819,847 819,847
- ---------------------------------------------------------------------------------------------
INTERMEDIATE-TERM
Investor Shares
Issued $ 462,335 40,470 $ 705,194 62,736
Issued in Lieu of Cash Distributions 56,053 4,907 53,685 4,779
Redeemed (679,158) (59,557) (795,731) (71,115)
----------------------------------------------------
Net Increase (Decrease)--Investor Shares (160,770) (14,180) (36,852) (3,600)
----------------------------------------------------
Admiral Shares
Issued $ 391,042 34,258 $ 724,351 64,691
Issued in Lieu of Cash Distributions 32,194 2,818 24,906 2,213
Redeemed (430,514) (37,763) (257,526) (22,960)
----------------------------------------------------
Net Increase (Decrease)--Admiral Shares (7,278) (687) 491,731 43,944
- ---------------------------------------------------------------------------------------------
Long-Term
Investor Shares
Issued $ 224,379 18,706 $ 340,877 29,054
Issued in Lieu of Cash Distributions 45,358 3,794 49,281 4,201
Redeemed (459,699) (38,555) (535,059) (45,808)
----------------------------------------------------
Net Increase (Decrease)--Investor Shares (189,962) (16,055) (144,901) (12,553)
----------------------------------------------------
Admiral Shares
Issued 256,517 21,490 398,564 34,123
Issued in Lieu of Cash Distributions 21,386 1,789 18,785 1,600
Redeemed (255,016) (21,392) (149,993) (12,741)
----------------------------------------------------
Net Increase (Decrease)--Admiral Shares 22,887 1,887 267,356 22,982
- ---------------------------------------------------------------------------------------------
59
REPORT OF INDEPENDENT AUDITORS
To the Shareholders and Trustees of Vanguard California Tax-Exempt Funds:
In our opinion, the accompanying statements of net assets and the related
statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
California Tax-Exempt Money Market Fund, California Intermediate-Term Tax-Exempt
Fund and California Long-Term Tax-Exempt Fund (constituting Vanguard California
Tax-Exempt Funds, hereafter referred to as the "Funds") at November 30, 2003,
the results of each of their operations for the year then ended, the changes in
each of their net assets for each of the two years in the period then ended and
the financial highlights for each of the five years in the period then ended, in
conformity with accounting principles generally accepted in the United States of
America. These financial statements and financial highlights (hereafter referred
to as "financial statements") are the responsibility of the Funds' management;
our responsibility is to express an opinion on these financial statements based
on our audits. We conducted our audits of these financial statements in
accordance with auditing standards generally accepted in the United States of
America, which require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at November 30, 2003 by
correspondence with the custodian and broker, provide a reasonable basis for our
opinion.
Pricewaterhouse Coopers LLP
Philadelphia, Pennsylvania
January 6, 2004
- --------------------------------------------------------------------------------
SPECIAL 2003 TAX INFORMATION
(UNAUDITED) FOR VANGUARD CALIFORNIA TAX-EXEMPT FUNDS
THIS INFORMATION FOR THE FISCAL YEAR ENDED NOVEMBER 30, 2003, IS INCLUDED
PURSUANT TO PROVISIONS OF THE INTERNAL REVENUE CODE.
THE INTERMEDIATE-TERM TAX-EXEMPT AND LONG-TERM TAX-EXEMPT FUNDS DISTRIBUTED
$10,004,000 AND $5,900,000, RESPECTIVELY, AS CAPITAL GAIN DIVIDENDS (FROM NET
LONG-TERM CAPITAL GAINS) TO SHAREHOLDERS DURING THE FISCAL YEAR.
EACH FUND DESIGNATES 100% OF ITS INCOME DIVIDENDS AS EXEMPT-INTEREST DIVIDENDS.
- --------------------------------------------------------------------------------
60
INVESTING IS FAST, EASY, AND SECURE ON VANGUARD.COM
If you're like many Vanguard investors, you believe in planning and taking
control of your own investments. VANGUARD.COM was built for you--and it keeps
getting better.
RESEARCH AND PLAN YOUR INVESTMENTS WITH CONFIDENCE
Use our PLANNING & ADVICE and RESEARCH FUNDS & STOCKS sections to:
* Determine what asset allocation might best suit your needs--by taking our
Investor Questionnaire.
* Find out how much to save for retirement and your children's college
education-- by using our planning tools.
* Learn how to achieve your goals--by reading our PlainTalk(R) investment
guides.
* Find your next fund--by using the COMPARE FUNDS, COMPARE COSTS, and NARROW
YOUR FUND CHOICES tools.
* Look up fund price, performance history, and distribution information--in a
snap.
INVEST AND MANAGE ACCOUNTS WITH EASE
Log on to VANGUARD.COM to:
* See what you own (at Vanguard and elsewhere) and how your investments are
doing.
* Elect to receive online statements, fund reports (like this one),
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* Sign up to receive electronic newsletters from Vanguard informing you of
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Find out what Vanguard.com can do for you. Log on today!
61
CAPITALIZE ON YOUR IRA
Are you taking full advantage of your individual retirement account? You really
should be. The contribution limits on IRAs were recently raised, making these
tax-deferred accounts more powerful options for retirement savers.
Here's how you can exploit your IRA--and improve your chances of having the
retirement of your dreams.
CONTRIBUTE THE MAXIMUM AMOUNT EACH YEAR
It may be an obvious point, but if you invest as much in your IRA as the law
allows--currently $3,000 per tax year if you are under age 50 and $3,500 if you
are age 50 or over--you will increase the odds of meeting your retirement goals.
"Max out" every year you can.
MAKE IT AUTOMATIC
Put your IRA on autopilot by taking advantage of Vanguard's Automatic Investment
Plan. Your IRA contributions will be deducted from your bank account on a
schedule of your choosing, making retirement investing a healthy habit.
CONSIDER COST
The owners of low-cost investments keep a larger portion of their gross returns
than the owners of high-cost investments. Over the long term, avoiding costlier
mutual funds and brokerage commissions could significantly boost your retirement
savings. Our low costs are one reason a Vanguard IRA(R) is such a smart choice.
REQUEST A DIRECT ROLLOVER WHEN YOU CHANGE JOBS
Don't spend your retirement assets before you've retired. When you change jobs,
roll your 401(k) or other employer-sponsored retirement plan assets directly
into your IRA.
If you have questions about your IRA, want to transfer an IRA from another
institution to Vanguard, or need help with any other IRA transaction, call our
Retirement Resource Center at 1-800-205-6189 or visit VANGUARD.COM. You can open
or fund your IRA on our website and have a confirmation in your hand within
minutes.
62
THE VANGUARD(R) FAMILY OF FUNDS
STOCK FUNDS
500 Index Fund
Calvert Social Index Fund
Capital Opportunity Fund
Capital Value Fund
Convertible Securities Fund
Developed Markets Index Fund
Dividend Growth Fund
Emerging Markets Stock Index Fund
Energy Fund
Equity Income Fund
European Stock Index Fund
Explorer(TM) Fund
Extended Market Index Fund
Global Equity Fund
Growth and Income Fund
Growth Equity Fund
Growth Index Fund
Health Care Fund
Institutional Developed Markets Index Fund
Institutional Index Fund
Institutional Total Stock Market Index Fund
International Explorer(TM) Fund
International Growth Fund
International Value Fund
Mid-Cap Growth Fund
Mid-Cap Index Fund
Morgan(TM) Growth Fund
Pacific Stock Index Fund
Precious Metals Fund
PRIMECAP Fund
REIT Index Fund
Selected Value Fund
Small-Cap Growth Index Fund
Small-Cap Index Fund
Small-Cap Value Index Fund
Strategic Equity Fund
Tax-Managed Capital Appreciation Fund
Tax-Managed Growth and Income Fund
Tax-Managed International Fund
Tax-Managed Small-Cap Fund
Total International Stock Index Fund
Total Stock Market Index Fund
U.S. Growth Fund
U.S. Value Fund
Value Index Fund
Windsor(TM) Fund
Windsor(TM) II Fund
BALANCED FUNDS
Asset Allocation Fund
Balanced Index Fund
LifeStrategy(R) Conservative Growth Fund
LifeStrategy(R) Growth Fund
LifeStrategy(R) Income Fund
LifeStrategy(R) Moderate Growth Fund
STAR(R) Fund
Target Retirement Funds:
Retirement Income
Retirement 2005
Retirement 2015
Retirement 2025
Retirement 2035
Retirement 2045
Tax-Managed Balanced Fund
Wellesley(R) Income Fund
Wellington(TM) Fund
BOND FUNDS
GNMA Fund
High-Yield Corporate Fund
High-Yield Tax-Exempt Fund
Inflation-Protected Securities Fund
Institutional Total Bond Market Index Fund
Insured Long-Term Tax-Exempt Fund
Intermediate-Term Bond Index Fund
Intermediate-Term Corporate Fund
Intermediate-Term Tax-Exempt Fund
Intermediate-Term Treasury Fund
Limited-Term Tax-Exempt Fund
Long-Term Bond Index Fund
Long-Term Corporate Fund
Long-Term Tax-Exempt Fund
Long-Term Treasury Fund
Short-Term Bond Index Fund
Short-Term Corporate Fund
Short-Term Federal Fund
Short-Term Tax-Exempt Fund
Short-Term Treasury Fund
State Tax-Exempt Bond Funds
(California, Florida, Massachusetts,
New Jersey, New York, Ohio,
Pennsylvania)
Total Bond Market Index Fund
MONEY MARKET FUNDS
Admiral(TM) Treasury Money Market Fund
Federal Money Market Fund
Prime Money Market Fund
State Tax-Exempt Money Market
Funds (California, New Jersey,
New York, Ohio, Pennsylvania)
Tax-Exempt Money Market Fund
Treasury Money Market Fund
VARIABLE ANNUITY
Balanced Portfolio
Capital Growth Portfolio
Diversified Value Portfolio
Equity Income Portfolio
Equity Index Portfolio
Growth Portfolio
High Yield Bond Portfolio
International Portfolio
Mid-Cap Index Portfolio
Money Market Portfolio
REIT Index Portfolio
Short-Term Corporate Portfolio
Small Company Growth Portfolio
Total Bond Market Index Portfolio
Total Stock Market Index Portfolio
For information about Vanguard funds and annuities, including charges and
expenses, obtain a prospectus from The Vanguard Group, P.O. Box 2600, Valley
Forge, PA 19482-2600. Read it carefully before you invest or send money.
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 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.
Our independent board members bring distinguished backgrounds in business,
academia, and public service to their task of working with Vanguard officers to
establish the policies and oversee the activities of
- ------------------------------------------------------------------------------------------------------------
POSITION(S) HELD WITH
NAME FUND (NUMBER OF
(YEAR OF BIRTH) VANGUARD FUNDS
TRUSTEE/OFFICER OVERSEEN BY
SINCE TRUSTEE/OFFICER) PRINCIPAL OCCUPATION(S) DURING THE PAST FIVE YEARS
- ------------------------------------------------------------------------------------------------------------
JOHN J. BRENNAN* Chairman of the Chairman of the Board, Chief Executive Officer, and Director/Trustee
(1954) Board, Chief of The Vanguard Group, Inc., and of each of the investment companies
May 1987 Executive Officer, served by The Vanguard Group.
and Trustee
(112)
- ------------------------------------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
CHARLES D. ELLIS Trustee The Partners of '63 (pro bono ventures in education); Senior Advisor
(1937) (112) to Greenwich Associates (international business strategy consulting);
January 2001 Successor Trustee of Yale University; Overseer of the Stern School of
Business at New York University; Trustee of the Whitehead Institute
for Biomedical Research.
- ------------------------------------------------------------------------------------------------------------
RAJIV L. GUPTA Trustee Chairman and Chief Executive Officer (since October 1999), Vice
(1945) (112) Chairman (JanuarySeptember 1999), and Vice President (prior to
December 2001 September 1999) of Rohm and Haas Co. (chemicals); Director of
Technitrol, Inc. (electronic components), and Agere Systems
(communications components); Board Member of the American Chemistry
Council; and Trustee of Drexel University.
- ------------------------------------------------------------------------------------------------------------
JOANN HEFFERNAN Trustee Vice President, Chief Information Officer, and Member of the
HEISEN (112) Executive Committee of Johnson & Johnson (pharmaceuticals/consumer
(1950) products); Director of the Medical Center at Princeton and Women's
July 1998 Research and Education Institute.
- ------------------------------------------------------------------------------------------------------------
BURTON G. MALKIEL Trustee Chemical Bank Chairman's Professor of Economics,Princeton University;
(1932) (110) Director of Vanguard Investment Series plc (Irish invest-ment fund)
May 1977 (since November 2001), Vanguard Group (Ireland)Limited (Irish
investment management firm)(since November 2001),Prudential Insurance
Co. of America, BKF Capital (investment management), The Jeffrey Co.
(holding company), and NeuVis, Inc.(software company).
- ------------------------------------------------------------------------------------------------------------
the funds. Among board members' responsibilities are selecting investment
advisors for the funds; monitoring fund operations, performance, and costs;
reviewing contracts; nominating and selecting new trustees/directors; and
electing Vanguard officers.
Each trustee serves a fund until its termination; or until the trustee's
retirement, resignation, or death; or otherwise as specified in the fund's
organizational documents. Any trustee may be removed at a shareholders' meeting
by a vote representing two-thirds of the net asset value of all shares of the
fund together with shares of other Vanguard funds organized within the same
trust. The table on these two pages shows information for each trustee and
executive officer of the fund. The mailing address of the trustees and officers
is P.O. Box 876, Valley Forge, PA 19482.
POSITION(S) HELD WITH
NAME FUND (NUMBER OF
(YEAR OF BIRTH) VANGUARD FUNDS
TRUSTEE/OFFICER OVERSEEN BY
SINCE TRUSTEE/OFFICER) PRINCIPAL OCCUPATION(S) DURING THE PAST FIVE YEARS
- ------------------------------------------------------------------------------------------------------------
Alfred M. Rankin, Jr. Trustee Chairman, President, Chief Executive Officer, and Director of NACCO
(1941) (112) Industries, Inc. (forklift trucks/housewares/lignite); Director of
January 1993 Goodrich Corporation (industrial products/aircraft systems and
services); Director of Standard Products Company (supplier for
the automotive industry) until 1998.
- ------------------------------------------------------------------------------------------------------------
J. Lawrence Wilson Trustee Retired Chairman and Chief Executive Officer of Rohm and Haas Co.
(1936) (112) (chemicals); Director of Cummins Inc. (diesel engines), The Mead
April 1985 Corp. (paper products), and AmerisourceBergen Corp. (pharmaceuti-cal
distribution); Trustee of Vanderbilt University.
- ------------------------------------------------------------------------------------------------------------
EXECUTIVE OFFICERS*
R. Gregory Barton Secretary Managing Director and General Counsel of The Vanguard Group, Inc.;
(1951) (112) Secretary of The Vanguard Group and of each of the investment
June 2001 companies served by The Vanguard Group.
- ------------------------------------------------------------------------------------------------------------
Thomas J. Higgins Treasurer Principal of The Vanguard Group, Inc.; Treasurer of each of the
(1957) (112) investment companies served by The Vanguard Group.
July 1998
- ------------------------------------------------------------------------------------------------------------
*Officers of the funds are "interested persons" as defined in the Investment
Company Act of 1940.
More information about the trustees is in the Statement of Additional
Information, available from The Vanguard Group.
- ------------------------------------------------------------------------------------------------------------
VANGUARD SENIOR MANAGEMENT TEAM
MORTIMER J. BUCKLEY, Information Technology. MICHAEL S. MILLER, Planning and Development.
JAMES H. GATELY, Investment Programs and Services. RALPH K. PACKARD, Finance.
KATHLEEN C. GUBANICH, Human Resources. GEORGE U. SAUTER, Chief Investment Officer.
F. WILLIAM MCNABB, III, Client Relationship Group.
- ------------------------------------------------------------------------------------------------------------
JOHN C. BOGLE, Founder; Chairman and Chief Executive Officer, 1974-1996.
- ------------------------------------------------------------------------------------------------------------
[SHIP]
[THE VANGUARD GROUP(R) LOGO]
Post Office Box 2600
Valley Forge, PA 19482-2600
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ship logo are trademarks of The Vanguard Group, Inc.
STANDARD & POOR'S 500 and 500 are trademarks of The McGraw-Hill Companies, Inc.,
and have been licensed for use by The Vanguard Group, Inc. Vanguard mutual funds
are not sponsored, endorsed, sold, or promoted by Standard & Poor's, and
Standard & Poor's makes no representation regarding the advisability of
investing in the funds.
CALVERT SOCIAL INDEX is a trademark of Calvert Group, Ltd., and has been
licensed for use by The Vanguard Group, Inc. Vanguard Calvert Social Index Fund
is not sponsored, endorsed, sold, or promoted by Calvert Group, Ltd., and
Calvert Group, Ltd., makes no representation regarding the advisability of
investing in the fund.
All other marks are the exclusive property of their respective owners.
ABOUT OUR COVER
The photographs that appear on the cover of this report are copyrighted by
Michael Kahn.
FOR MORE INFORMATION
This report is intended for the funds' shareholders. It may not be distributed
to prospective investors unless it is preceded or accompanied by the current
fund prospectus.
To receive a free copy of the prospectus or the STATEMENT OF ADDITIONAL
INFORMATION, or to request additional information about the funds or other
Vanguard funds, please contact us at one of the adjacent telephone numbers or by
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WORLD WIDE WEB
www.vanguard.com
FUND INFORMATION
1-800-662-7447
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1-800-662-2739
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1-800-523-1036
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(C) 2004 THE VANGUARD GROUP, INC.
ALL RIGHTS RESERVED.
VANGUARD MARKETING
CORPORATION, DISTRIBUTOR.
Q750 012004
ITEM 2: Code of Ethics. The Board of Trustees has adopted a code of ethics that
applies to the principal executive officer, principal financial officer,
principal accounting officer or controller of the Registrant and The Vanguard
Group, Inc., and to persons performing similar functions.
ITEM 3: Audit Committee Financial Expert. All of the members of the Audit
Committee have been determined by the Registrant's Board of Trustees to be Audit
Committee Financial Experts. The members of the Audit Committee are: Charles D.
Ellis, Rajiv L. Gupta, JoAnn Heffernan Heisen, Burton G. Malkiel, Alfred M.
Rankin, Jr., and J. Lawrence Wilson. All Audit Committee members are independent
under applicable rules.
ITEM 4: Not applicable.
ITEM 5: Not applicable.
ITEM 6: Reserved.
ITEM 7: Not applicable.
ITEM 8: Reserved.
ITEM 9: 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 10: EXHIBITS. The following exhibits are attached hereto:
(a) code of ethics
(b) 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:_____________(signature)________________
(HEIDI STAM)
JOHN J. BRENNAN*
CHIEF EXECUTIVE OFFICER
Date: January 22, 2004
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:_____________(signature)________________
(HEIDI STAM)
JOHN J. BRENNAN*
CHIEF EXECUTIVE OFFICER
Date: January 22, 2004
VANGUARD CALIFORNIA TAX-FREE FUNDS
BY:_____________(signature)________________
(HEIDI STAM)
THOMAS J. HIGGINS*
TREASURER
Date: January 22, 2004
*By Power of Attorney. See File Number 2-57689, filed on December 26, 2002.
Incorporated by Reference.