UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-06350
Active Assets California Tax-Free Trust
(Exact name of registrant as specified in charter)
522 Fifth Avenue, New York, New York 10036
(Address of principal executive offices) (Zip code)
Ronald E. Robison
522 Fifth Avenue, New York, New York 10036
(Name and address of agent for service)
Registrant's telephone number, including area code: 212-296-6990
Date of fiscal year end: June 30, 2008
Date of reporting period: December 31, 2007
Item 1 - Report to Shareholders
Welcome, Shareholder:
In this report, you'll learn about how your investment in Active Assets
California Tax-Free Trust performed during the semiannual period. We will
provide an overview of the market conditions, and discuss some of the factors
that affected performance during the reporting period. In addition, this report
includes the Fund's financial statements and a list of Fund investments.
THIS MATERIAL MUST BE PRECEDED OR ACCOMPANIED BY A PROSPECTUS FOR THE FUND BEING
OFFERED.
MARKET FORECASTS PROVIDED IN THIS REPORT MAY NOT NECESSARILY COME TO PASS. THERE
IS NO ASSURANCE THAT A MUTUAL FUND WILL ACHIEVE ITS INVESTMENT OBJECTIVE. 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 AN INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE
TO LOSE MONEY BY INVESTING IN THE FUND. PLEASE SEE THE PROSPECTUS FOR MORE
COMPLETE INFORMATION ON INVESTMENT RISKS.
FUND REPORT
For the six months ended December 31, 2007
MARKET CONDITIONS
The latter half of 2007 was marked by market turmoil and uncertainty. The
dislocations stemming from subprime mortgage woes permeated all sectors of the
fixed income markets, leading to a significant contraction in credit and
liquidity. Growing losses and mark-to-market writedowns announced by major
financial institutions had a crippling effect on the transaction of business.
The monoline bond insurers -- insurance companies that provide guarantees to
issuers that enhance their credit and which have played a significant role in
the municipal bond market in recent years -- were also caught up in the crisis.
Furthermore, state and local governments began to feel the effects of the
slowing housing market as incoming tax receipts lagged behind projections. At
the same time, signs began to emerge in the fourth quarter of the year that the
problems in the markets were beginning to slow economic growth. In an effort to
spur the economy and ease the liquidity crunch, the Federal Open Market
Committee (the "Fed") lowered the target federal funds rate a total of one
percent in three separate moves between September and year end, bringing the
rate to 4.25 percent.
The troubling events had an impact on tax-exempt money market interest rates as
well. Dealers became reluctant to carry large inventories and in an effort to
appeal to non-traditional investors, kept rates for variable-rate instruments at
attractive levels compared to taxable alternatives. As a result, the Securities
Industry and Financial Markets Association (SIFMA) Index of weekly municipal
variable-rate yields dropped only 31 basis points from 3.73 percent to 3.42
percent during the second half of the year, which did not fully reflect the 100
basis point cut in the federal funds rate target. At the same time, tax-free
money market funds experienced steady cash inflows. The result was an odd
combination of relatively high municipal money market rates amid tight supply
conditions.
PERFORMANCE ANALYSIS
As of December 31, 2007, Active Assets California Tax-Free Trust had net assets
of approximately $2.49 billion and an average portfolio maturity of 31 days. For
the six-month period ended December 31, 2007, the Fund provided a total return
of 1.54 percent. For the seven-day period ended December 31, 2007, the Fund
provided an effective annualized yield of 2.85 percent and a current yield of
2.81 percent, while its 30-day moving average yield for December was 2.79
percent. Past performance is no guarantee of future results.
Given the unsettling events and uncertain market conditions during the reporting
period, daily and weekly variable-rate securities remained the dominant
investments in the Fund's portfolio. In the latter months of the period,
however, prospects for declining short-term interest rates led us to seek
opportunities to lock in attractive yields through investments in longer-term
fixed-rate instruments. We selectively added to holdings in notes in the six-to-
12 month range and commercial paper in the 30-to-90 day range. A light financing
calendar, however, limited opportunities to extend the weighted average maturity
of the Fund's portfolio.
Growing evidence of a softening economy called for a strong focus on credit
review and analysis. We will continue to proceed with caution as we await a more
stable market environment.
There is no guarantee that any sectors mentioned will continue to perform as
discussed herein or that securities in such sectors will be held by the Fund in
the future.
2
<Table>
<Caption>
PORTFOLIO COMPOSITION
Variable Rate Municipal
Obligations 84.0%
Municipal Notes & Bonds 10.0
Tax-Exempt Commercial Paper 6.0
</Table>
<Table>
<Caption>
MATURITY SCHEDULE
1 - 30 Days 84.0%
31 - 60 Days 2.7
61 - 90 Days 2.1
91 - 120 Days 1.2
121 + Days 10.0
</Table>
Data as of December 31, 2007. Subject to change daily. All percentages for
portfolio composition and maturity schedule are as a percentage of total
investments. These data are provided for informational purposes only and should
not be deemed a recommendation to buy or sell the securities mentioned. Morgan
Stanley is a full-service securities firm engaged in securities trading and
brokerage activities, investment banking, research and analysis, financing and
financial advisory services.
INVESTMENT STRATEGY
THE FUND WILL INVEST IN HIGH QUALITY, SHORT-TERM SECURITIES THAT ARE NORMALLY
MUNICIPAL OBLIGATIONS THAT PAY INTEREST EXEMPT FROM FEDERAL AND CALIFORNIA
PERSONAL INCOME TAXES. THE FUND'S "INVESTMENT ADVISER," MORGAN STANLEY
INVESTMENT ADVISORS INC., SEEKS TO MAINTAIN THE FUND'S SHARE PRICE AT $1.00. THE
SHARE PRICE REMAINING STABLE AT $1.00 MEANS THAT THE FUND WOULD PRESERVE THE
PRINCIPAL VALUE OF YOUR INVESTMENT.
AN INVESTMENT IN THE 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 $1.00 PER SHARE, IT IS POSSIBLE TO LOSE
MONEY BY INVESTING IN THE FUND.
FOR MORE INFORMATION ABOUT PORTFOLIO HOLDINGS
EACH MORGAN STANLEY FUND PROVIDES A COMPLETE SCHEDULE OF PORTFOLIO HOLDINGS IN
ITS SEMIANNUAL AND ANNUAL REPORTS WITHIN 60 DAYS OF THE END OF THE FUND'S SECOND
AND FOURTH FISCAL QUARTERS. THE SEMIANNUAL REPORTS AND THE ANNUAL REPORTS ARE
FILED ELECTRONICALLY WITH THE SECURITIES AND EXCHANGE COMMISSION (SEC) ON FORM
N-CSRS AND FORM N-CSR, RESPECTIVELY. MORGAN STANLEY ALSO DELIVERS THE SEMIANNUAL
AND ANNUAL REPORTS TO FUND SHAREHOLDERS AND MAKES THESE REPORTS AVAILABLE ON ITS
PUBLIC WEB SITE, WWW.MORGANSTANLEY.COM. EACH MORGAN STANLEY FUND ALSO FILES A
COMPLETE SCHEDULE OF PORTFOLIO HOLDINGS WITH THE SEC FOR THE FUND'S FIRST AND
THIRD FISCAL QUARTERS ON FORM N-Q. MORGAN STANLEY DOES NOT DELIVER THE REPORTS
FOR THE FIRST AND THIRD FISCAL QUARTERS TO SHAREHOLDERS, NOR ARE THE REPORTS
POSTED TO THE MORGAN STANLEY PUBLIC WEB SITE. YOU MAY, HOWEVER, OBTAIN THE FORM
N-Q FILINGS (AS WELL AS THE FORM N-CSR AND N-CSRS FILINGS) BY
3
ACCESSING THE SEC'S WEB SITE, HTTP://WWW.SEC.GOV. YOU MAY ALSO REVIEW AND COPY
THEM AT THE SEC'S PUBLIC REFERENCE ROOM IN WASHINGTON, DC. INFORMATION ON THE
OPERATION OF THE SEC'S PUBLIC REFERENCE ROOM MAY BE OBTAINED BY CALLING THE SEC
AT (800) SEC-0330. YOU CAN ALSO REQUEST COPIES OF THESE MATERIALS, UPON PAYMENT
OF A DUPLICATING FEE, BY ELECTRONIC REQUEST AT THE SEC'S E-MAIL ADDRESS
(PUBLICINFO@SEC.GOV) OR BY WRITING THE PUBLIC REFERENCE SECTION OF THE SEC,
WASHINGTON, DC 20549-0102.
HOUSEHOLDING NOTICE
TO REDUCE PRINTING AND MAILING COSTS, THE FUND ATTEMPTS TO ELIMINATE DUPLICATE
MAILINGS TO THE SAME ADDRESS. THE FUND DELIVERS A SINGLE COPY OF CERTAIN
SHAREHOLDER DOCUMENTS, INCLUDING SHAREHOLDER REPORTS, PROSPECTUSES AND PROXY
MATERIALS, TO INVESTORS WITH THE SAME LAST NAME WHO RESIDE AT THE SAME ADDRESS.
YOUR PARTICIPATION IN THIS PROGRAM WILL CONTINUE FOR AN UNLIMITED PERIOD OF TIME
UNLESS YOU INSTRUCT US OTHERWISE. YOU CAN REQUEST MULTIPLE COPIES OF THESE
DOCUMENTS BY CALLING (800) 869-NEWS, 8:00 A.M. TO 8:00 P.M., ET. ONCE OUR
CUSTOMER SERVICE CENTER HAS RECEIVED YOUR INSTRUCTIONS, WE WILL BEGIN SENDING
INDIVIDUAL COPIES FOR EACH ACCOUNT WITHIN 30 DAYS.
4
EXPENSE EXAMPLE
As a shareholder of the Fund, you incur ongoing costs, including advisory fees;
distribution and service (12b-1) fees; and other Fund expenses. This example is
intended to help you understand your ongoing costs (in dollars) of investing in
the Fund and to compare these costs with the ongoing costs of investing in other
mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the entire period 07/01/07 - 12/31/07.
ACTUAL EXPENSES
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
expenses based on the Fund's actual expense ratio and an assumed rate of return
of 5% per year before expenses, which is not the Fund's actual return. The
hypothetical account values and expenses may not be used to estimate the actual
ending account balance or expenses you paid for the period. You may use this
information to compare the ongoing cost of investing in the Fund and other
funds. To do so, compare this 5% hypothetical example with the 5% hypothetical
examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only. Therefore, the second line of the table is useful in
comparing ongoing costs, and will not help you determine the relative total cost
of owning different funds that have transactional costs, such as sales charges
(loads), and redemption fees, or exchange fees.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD*
------------- ------------- --------------
07/01/07 -
07/01/07 12/31/07 12/31/07
------------- ------------- --------------
Actual (1.54% return).......................... $1,000.00 $1,015.40 $2.66
Hypothetical (5% annual return before
expenses).................................... $1,000.00 $1,022.71 $2.67
</Table>
- ---------
* Expenses are equal to the Fund's annualized expense ratio of 0.52%
multiplied by the average account value over the period, multiplied by
185**/365 (to reflect the one-half year period).
** Adjusted to reflect non-business days accruals.
5
Active Assets California Tax-Free Trust
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2007 (UNAUDITED)
<Table>
<Caption>
PRINCIPAL
AMOUNT IN COUPON DEMAND
THOUSANDS RATE+ DATE* VALUE
- ------------------------------------------------------------------------------------------
California Tax-Exempt Short-Term Variable Rate
Municipal Obligations (83.5%)
ABAG Finance Authority for Nonprofit
Corporations,
$ 5,900 Elder Care Alliance of San Francisco Ser
2006 A.................................. 3.35% 01/08/08 $ 5,900,000
12,750 Eskaton Village - Placerville Ser 2007.. 3.59 01/08/08 12,750,000
11,735 Eskaton Village - Roseville Ser 2006.... 3.42 01/08/08 11,735,000
22,000 Oshman Family Jewish Community Center
Ser 2007................................ 3.46 01/02/08 22,000,000
13,855 Anaheim Public Financing Authority,
Distribution System ROCs II-R Ser 6021
(MBIA Insd)............................. 3.48 01/08/08 13,855,000
Austin Trust, Irvine Unified School
District No 07-1,
22,695 Ser 2007 A Custody Receipts Ser
2007 - 314.............................. 3.46 01/08/08 22,695,000
10,000 Ser 2007 B Custody Receipts Ser
2007 - 315.............................. 3.48 01/08/08 10,000,000
18,730 Bakersfield, Wastewater Ser 2007 B (FSA
Insd)................................... 3.39 01/08/08 18,730,000
Bay Area Toll Authority,
69,800 San Francisco Bay Area Toll Bridge 2001
Ser A (AMBAC Insd)...................... 3.22 01/08/08 69,800,000
13,900 San Francisco Bay Area Toll Bridge 2006
Ser A-2 (XLCA Insd)..................... 3.22 01/08/08 13,900,000
28,000 San Francisco Bay Area Toll Bridge 2007
Ser D-2 (AMBAC Insd).................... 3.18 01/08/08 28,000,000
29,525 California, Economic Recovery Ser 2004 C-
4....................................... 3.53 01/02/08 29,525,000
California Department of Water Resources,
20,750 Power Supply Ser 2002 B Subser B-2...... 3.54 01/02/08 20,750,000
3,600 Power Supply Ser 2002 B Subser B-3...... 3.50 01/02/08 3,600,000
16,000 Power Supply Ser 2002 C Subser C-16 & C-
18...................................... 3.30 01/08/08 16,000,000
21,100 Power Supply Ser 2002 C Subser G-5...... 3.33 01/08/08 21,100,000
21,500 Power Supply Ser 2005 G Subser G-12
(FGIC Insd)............................. 3.35 01/08/08 21,500,000
67,040 Power Supply Ser 2005 G Subser G-14
(FGIC Insd)............................. 3.45 01/08/08 67,040,000
California Educational Facilities
Authority,
72,500 California Institute of Technology Ser
1994 & 2006 Ser A....................... 3.27 01/08/08 72,500,000
5,465 California Lutheran University Ser 2004
A....................................... 3.60 01/08/08 5,465,000
California Health Facilities Financing
Authority,
40,025 Catholic Healthcare West Ser 2005....... 3.35 01/08/08 40,025,000
46,740 Kaiser Permanente Ser 2006 C............ 3.41 01/08/08 46,740,000
34,700 Northern California Presbyterian Homes &
Services Ser 2004....................... 3.28 01/08/08 34,700,000
33,195 Sisters of Charity of Leavenworth Health
System Ser 2003......................... 3.35 01/08/08 33,195,000
California Housing Finance Agency,
11,000 Home Mortgage 2002 Ser J (MBIA Insd)
(AMT)................................... 3.67 01/02/08 11,000,000
36,000 Home Mortgage 2005 Ser D (AMT).......... 3.38 01/08/08 36,000,000
16,115 Multifamily Ser 2000 A (AMT)............ 3.67 01/02/08 16,115,000
18,050 Multifamily Ser 2006 A (AMT)............ 3.67 01/02/08 18,050,000
5,750 California Infrastructure & Economic
Development Bank, Le Lycee Francais de
Los Angeles Ser 2006.................... 3.35 01/08/08 5,750,000
California Statewide Communities
Development Authority,
20,700 American Baptist Homes of the West Ser
2006.................................... 3.32 01/08/08 20,700,000
26,300 Azusa Pacific University Project........ 3.38 01/08/08 26,300,000
</Table>
See Notes to Financial Statements
6
Active Assets California Tax-Free Trust
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2007 (UNAUDITED) continued
<Table>
<Caption>
PRINCIPAL
AMOUNT IN COUPON DEMAND
THOUSANDS RATE+ DATE* VALUE
- ------------------------------------------------------------------------------------------
$ 5,820 Chabad of California Ser 2004........... 3.33% 01/08/08 $ 5,820,000
14,000 Front Porch Communities & Services Ser
2007 B.................................. 3.33 01/08/08 14,000,000
58,600 Kaiser Permanente Ser 2003 B & Ser 2004
J & L................................... 3.41 01/08/08 58,600,000
61,360 SWEEP Loan Program Ser 2007 A........... 3.36 01/08/08 61,360,000
12,000 University of San Diego Ser 2005........ 3.38 01/08/08 12,000,000
50,000 Western University of Health Sciences
Ser 2007 A.............................. 3.39 01/08/08 50,000,000
6,730 Cerritos Community College District, Ser
2005 P-FLOATs PT-2934 (AMBAC Insd)...... 3.60 01/08/08 6,730,000
6,700 Corona - Norco Unified School District,
Ser 2005 COPs........................... 3.28 01/08/08 6,700,000
25,400 East Bay Municipal Utility District,
Wastewater Sub Ser 2003 B (XLCA Insd)... 3.40 01/08/08 25,400,000
2,990 East Side Union High School District,
Santa Clara County Ser 2006 B MERLOTs
Ser B 28 (MBIA Insd).................... 3.78 01/08/08 2,990,000
8,340 Eastern Municipal Water District, Water &
Sewer Ser 1993 B COPs (FGIC Insd)....... 3.28 01/08/08 8,340,000
71,450 Enhanced Return Puttable Floating Option
Tax-Exempt Receipts, California P-FLOATs
Ser EC-1011 & EC-1017................... 3.82 01/08/08 71,450,000
46,755 Fresno, Sewer System Sublien Ser 2000 A
(FGIC Insd)............................. 3.28 01/08/08 46,755,000
10,500 Glendale Financing Authority, 2000 Police
Building COPs........................... 3.35 01/08/08 10,500,000
2,400 Grant Joint Union High School District,
School Facility Bridge Funding Ser 2005
COPs (FSA Insd)......................... 3.28 01/08/08 2,400,000
6,195 Hacienda - La Puenta Unified School
District, 2000 Ser B P-FLOATs PT-1988
(FSA Insd).............................. 3.60 01/08/08 6,195,000
23,945 Hemet Unified School District, Ser 2006
COPs (AMBAC Insd)....................... 3.40 01/08/08 23,945,000
17,100 Hillsborough, Water & Sewer System Ser
2003 A & 2006 A COPs.................... 3.37 01/08/08 17,100,000
9,100 Irvine Assessment District #93-14,
Improvement Bond Act 1915............... 3.50 01/02/08 9,100,000
4,210 J P Morgan Chase & Co, Los Angeles Unified
School District Ser 2007 A-1 I-PUTTERs
Ser 1711P (FSA Insd).................... 3.54 01/08/08 4,210,000
10,000 Los Angeles, Single Family Mortgage 2004
Ser A (AMT)............................. 3.38 01/08/08 10,000,000
10,550 Los Angeles County Housing Authority,
Multifamily Malibu Meadows 1998 Ser B... 3.33 01/08/08 10,550,000
Los Angeles County Metropolitan
Transportation Authority,
4,300 Prop C Sales Tax Ser 1993-A (MBIA
Insd)................................... 3.28 01/08/08 4,300,000
6,000 Prop C Sales Tax Ser 2004-A ROCs II-R
Ser 12037 (MBIA Insd)................... 3.54 01/08/08 6,000,000
1,000 Los Angeles County Transportation
Commission, Sales Tax Ser 1992-A (FGIC
Insd)................................... 3.33 01/08/08 1,000,000
Los Angeles Department of Water & Power,
33,400 Power System 2001 Ser B Subser B-5...... 3.30 01/08/08 33,400,000
10,200 Water System 2001 Ser B Subser B-1...... 3.31 01/08/08 10,200,000
10,875 Los Angeles Unified School District, P-
FLOATs PT-1855 (FSA Insd)............... 3.46 01/08/08 10,875,000
</Table>
See Notes to Financial Statements
7
Active Assets California Tax-Free Trust
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2007 (UNAUDITED) continued
<Table>
<Caption>
PRINCIPAL
AMOUNT IN COUPON DEMAND
THOUSANDS RATE+ DATE* VALUE
- ------------------------------------------------------------------------------------------
MACON Trust,
$14,200 Irvine Unified School District Community
Facilities District No 06-1 Ser 2007 B
Variable Ser 2007 - 317................. 3.48% 01/08/08 $ 14,200,000
22,685 Tustin Unified School District Community
Facilities District No 07-1 Ser 2007
Variable Ser 2007 - 336................. 3.48 01/08/08 22,685,000
8,700 Madera Irrigation Financing Authority,
Water Ser 2005 A (XLCA Insd)............ 3.70 01/02/08 8,700,000
4,300 Menlo Park Community Development Agency,
Las Pulgas Community Development Tax
Allocation Ser 2006 (AMBAC Insd)........ 3.68 01/02/08 4,300,000
Metropolitan Water District of Southern
California,
6,500 Waterworks 1996 Ser A (AMBAC Insd)...... 3.25 01/08/08 6,500,000
47,800 Waterworks 1999 Ser B & C............... 3.28 01/08/08 47,800,000
32,700 Waterworks 2000 Ser B-2................. 3.28 01/08/08 32,700,000
13,300 Mountain View, Villa Mariposa Multifamily
1985 Ser A.............................. 3.37 01/08/08 13,300,000
14,080 Northern California Gas Authority No 1,
Gas Project Ser 2007 B Floaters Ser
2007 - 98............................... 3.47 01/08/08 14,080,000
12,410 Northern California Power Agency,
Hydroelectric No 1 Ser 2002 B (MBIA
Insd)................................... 3.28 01/08/08 12,410,000
50,950 Oakland - Alameda County Coliseum
Authority, Oakland Coliseum 2000 Refg
Ser C-2................................. 3.30 01/08/08 50,950,000
15,665 Oakland Joint Powers Transit Authority,
Fruitvale Transit Village Ser 2001 A.... 3.35 01/08/08 15,665,000
4,320 Paramount Unified School District, School
Facility Bridge Funding Ser 2001 COPs... 3.28 01/08/08 4,320,000
12,000 Pasadena, City Hall & Park Improvement Ser
2003 COPs (AMBAC Insd).................. 3.28 01/08/08 12,000,000
2,300 Pittsburg Redevelopment Agency, Los
Medanos Community Development Sub 2004
Ser A (AMBAC Insd)...................... 3.68 01/02/08 2,300,000
17,200 Pleasanton, Assisted Living Facility Ser
2005.................................... 3.33 01/08/08 17,200,000
9,500 Pomona Redevelopment Agency, Park & Plaza
Apartments Ser 1998 A................... 3.32 01/08/08 9,500,000
3,800 Poway Unified School District, Ser 2004
COPs (FSA Insd)......................... 3.28 01/08/08 3,800,000
Puttable Floating Option Tax-Exempt
Receipts,
6,000 California Ser 2003 P-FLOATs PT-4211.... 3.46 01/08/08 6,000,000
50,900 California Ser 2007 P-FLOATs EC-1177.... 3.82 01/08/08 50,900,000
31,450 California Ser 2007 P-FLOATs PT-4022
(AMBAC Insd)............................ 3.52 01/08/08 31,450,000
15,000 Los Angeles Community College District
Ser 2006 E P-FLOATs PT-4328 (FSA Insd).. 3.52 01/08/08 15,000,000
13,000 San Bernardino Community College
District Ser 2006 C P-FLOATs PT-4317
(FSA Insd).............................. 3.52 01/08/08 13,000,000
5,500 San Jose Redevelopment Agency Ser 2006 C
P-FLOATs PA-1505 (MBIA Insd)............ 3.60 01/08/08 5,500,000
</Table>
See Notes to Financial Statements
8
Active Assets California Tax-Free Trust
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2007 (UNAUDITED) continued
<Table>
<Caption>
PRINCIPAL
AMOUNT IN COUPON DEMAND
THOUSANDS RATE+ DATE* VALUE
- ------------------------------------------------------------------------------------------
$ 6,320 Rescue Union School District, Ser 2001
COPs (FSA Insd)......................... 3.39% 01/08/08 $ 6,320,000
9,540 Riverside County, 2005 Ser A & B COPs P-
FLOATs PT-2704 (FGIC Insd).............. 3.52 01/08/08 9,540,000
9,100 San Bernardino County Housing Authority,
Multifamily Raintree Apartments Ser 2005
A....................................... 3.33 01/08/08 9,100,000
8,150 San Diego County, Ser 2004 COPs........... 3.37 01/08/08 8,150,000
San Francisco City & County Airport
Commission,
35,780 2006 Second Ser 33-B (XLCA Insd) (AMT).. 3.28 01/08/08 35,780,000
26,700 2006 Second Ser 33-G (XLCA Insd) (AMT).. 3.41 01/08/08 26,700,000
San Francisco City & County Redevelopment
Agency,
21,000 Bayside Village Multifamily Ser 1985 A.. 3.33 01/08/08 21,000,000
13,400 Multifamily Mercy Terrace Ser 2005 A.... 3.33 01/08/08 13,400,000
8,920 San Francisco City & County Finance
Corporation, Moscone Center Ser 2004 P-
FLOATs PT-2249 (AMBAC Insd)............. 3.52 01/08/08 8,920,000
Santa Clara,
2,800 Electric Ser 1985 C (AMBAC Insd)........ 3.28 01/08/08 2,800,000
10,500 Multifamily The Grove Garden Apartments
Ser 1997 A.............................. 3.33 01/08/08 10,500,000
15,700 Santa Clara Valley Transportation
Authority, Sales Tax Ser 2005 B (AMBAC
Insd)................................... 3.33 01/08/08 15,700,000
2,200 Snowline Joint Unified School District,
Ser 2005 COPs (FSA Insd)................ 3.28 01/08/08 2,200,000
Southern California Public Power
Authority,
58,410 Magnolia Power Project A Refg Ser 2007-1
(MBIA Insd)............................. 3.34 01/08/08 58,410,000
15,950 Transmission 1991 Refg Ser (AMBAC
Insd)................................... 3.34 01/08/08 15,950,000
18,900 Transmission Refg Ser 2001 A (FSA
Insd)................................... 3.28 01/08/08 18,900,000
26,700 Transmission Ser 1996 B (FSA Insd)...... 3.30 01/08/08 26,700,000
5,000 Torrance, Little Company of Mary
Hospital - Torrance Memorial Medical
Center Ser 1992......................... 3.42 01/08/08 5,000,000
7,075 Tulare - Porterville Schools Financing
Authority, Ser 2002 COPs (FSA Insd)..... 3.45 01/08/08 7,075,000
7,360 Turlock Irrigation District, Ser 1988 A... 3.35 01/08/08 7,360,000
9,400 Vallejo Housing Authority, Multifamily
Housing Crow - Western Phase II 1985 Ser
C....................................... 3.59 01/08/08 9,400,000
28,900 Vernon Natural Gas Financing Authority,
Vernon Gas Ser 2006 C (MBIA Insd)....... 3.34 01/08/08 28,900,000
9,900 Whittier, Whittier College Ser 2004....... 3.49 01/08/08 9,900,000
--------------
Total California Tax-Exempt Short-Term Variable Rate Municipal
Obligations (Cost $2,077,305,000)............................. 2,077,305,000
--------------
</Table>
See Notes to Financial Statements
9
Active Assets California Tax-Free Trust
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2007 (UNAUDITED) continued
<Table>
<Caption>
YIELD TO
PRINCIPAL MATURITY
AMOUNT IN COUPON MATURITY ON DATE OF
THOUSANDS RATE DATE PURCHASE VALUE
- ----------------------------------------------------------------------------------------------------------------------------
California Tax-Exempt Commercial Paper (6.0%)
$30,000 Los Angeles Department of Airports, Los Angeles International
Airport Ser A............................................... 2.98% 04/03/08 2.98 % $ 30,000,000
31,000 Los Angeles Department of Water & Power, Power System......... 3.40 02/07/08 3.40 31,000,000
San Diego Water Authority,
30,000 Ser 1....................................................... 3.47 02/12/08 3.47 30,000,000
38,000 Ser 3....................................................... 3.40 03/06/08 3.40 38,000,000
14,000 Ser 3....................................................... 3.42 03/12/08 3.42 14,000,000
5,500 Turlock Irrigation District, Sub Ser 2006 A................... 3.40 02/14/08 3.40 5,500,000
--------------
Total California Tax-Exempt Commercial Paper (Cost
$148,500,000)................................................. 148,500,000
--------------
California Tax-Exempt Short-Term Municipal Notes and Bonds (9.9%)
60,000 California, Ser 2007-2008 RANs, dtd 11/01/07.................. 4.00 06/30/08 3.37 60,183,543
California Communities Tax & Revenue Anticipation Note Program,
35,000 Certain Local Agencies Ser 2007 A-1 Note Participations, dtd
07/02/07.................................................... 4.50 06/30/08 3.64 35,143,582
35,000 Riverside County Ser 2007 A-3 Note Participations, dtd
07/02/07.................................................... 4.50 06/30/08 3.62 35,146,888
18,000 California Community College Financing Authority, Community
College League Ser 2007 A TRANs, dtd 07/02/07............... 4.50 06/30/08 3.67 18,071,246
20,000 Kern County, Ser 2007-2008 TRANs, dtd 07/02/07................ 4.50 06/30/08 3.615 20,084,434
13,000 Los Angeles County, 2007-2008 Ser TRANs, dtd 07/02/07......... 4.50 06/30/08 3.63 13,053,977
7,000 Los Angeles County Schools Pooled Financing Program, Pooled
2007-2008 Ser A TRANs, dtd 07/02/07......................... 4.50 06/30/08 3.62 7,029,378
37,000 Los Angeles Unified School District, Ser 2007 A TRANs, dtd
12/11/07.................................................... 4.00 12/29/08 3.176 37,294,852
20,000 Sacramento County, 2007 Ser A TRANs, dtd 07/03/07............. 4.25 07/09/08 3.67 20,058,532
--------------
Total California Tax-Exempt Short-Term Municipal Notes and Bonds (Cost $246,066,432)............ 246,066,432
--------------
Total Investments (Cost $2,471,871,432) (a)........................................ 99.4% 2,471,871,432
Other Assets in Excess of Liabilities.............................................. 0.6 14,190,879
----- --------------
Net Assets......................................................................... 100.0% $2,486,062,311
===== ==============
</Table>
See Notes to Financial Statements
10
Active Assets California Tax-Free Trust
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2007 (UNAUDITED) continued
- ----------
<Table>
AMT Alternative Minimum Tax.
COPs Certificates of Participation.
I - PUTTERs Income Puttable Tax-Exempt Receipt.
MERLOTs Municipal Exempt Receipts - Liquidity Option Tender.
P-FLOATs Puttable Floating Option Tax-Exempt Receipts.
RANs Revenue Anticipation Notes.
ROCs Reset Option Certificates.
TRANs Tax and Revenue Anticipation Notes.
+ Rate shown is the rate in effect at December 31, 2007.
* Date on which the principal amount can be recovered through
demand.
(a) Cost is the same for federal income tax purposes.
Bond Insurance:
AMBAC AMBAC Assurance Corporation.
FGIC Financial Guaranty Insurance Company.
FSA Financial Security Assurance Inc.
MBIA Municipal Bond Investors Assurance Corporation.
XLCA XL Capital Assurance Inc.
</Table>
See Notes to Financial Statements
11
Active Assets California Tax-Free Trust
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
December 31, 2007 (unaudited)
<Table>
Assets:
Investments in securities, at value (cost $2,471,871,432)..... $2,471,871,432
Cash.......................................................... 56,432
Interest receivable........................................... 15,219,656
Prepaid expenses and other assets............................. 39,801
--------------
Total Assets............................................... 2,487,187,321
--------------
Liabilities:
Payable for:
Investment advisory fee.................................... 675,988
Distribution fee........................................... 206,906
Administration fee......................................... 103,453
Shares of beneficial interest redeemed..................... 7,034
Accrued expenses and other payables........................... 131,629
--------------
Total Liabilities.......................................... 1,125,010
--------------
Net Assets................................................. $2,486,062,311
==============
Composition of Net Assets:
Paid-in-capital............................................... $2,485,985,890
Accumulated undistributed net investment income............... 8,703
Accumulated undistributed net realized gain................... 67,718
--------------
Net Assets................................................. $2,486,062,311
==============
Net Asset Value Per Share
2,485,953,737 shares outstanding (unlimited shares authorized
of $.01 par value).......................................... $1.00
=====
</Table>
See Notes to Financial Statements
12
Active Assets California Tax-Free Trust
FINANCIAL STATEMENTS continued
Statement of Operations
For the six months ended December 31, 2007 (unaudited)
<Table>
Net Investment Income:
Interest Income................................................. $38,439,950
-----------
Expenses
Investment advisory fee......................................... 3,670,573
Distribution fee................................................ 1,089,916
Administration fee.............................................. 544,958
Transfer agent fees and expenses................................ 189,793
Custodian fees.................................................. 44,413
Registration fees............................................... 35,384
Professional fees............................................... 29,295
Shareholder reports and notices................................. 28,280
Trustees' fees and expenses..................................... 16,315
Other........................................................... 65,834
-----------
Total Expenses............................................... 5,714,761
Less: expense offset............................................ (45,097)
-----------
Net Expenses................................................. 5,669,664
-----------
Net Investment Income........................................ 32,770,286
Net Realized Gain............................................ 20,473
-----------
Net Increase.................................................... $32,790,759
===========
</Table>
See Notes to Financial Statements
13
Active Assets California Tax-Free Trust
FINANCIAL STATEMENTS continued
Statements of Changes in Net Assets
<Table>
<Caption>
FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED
DECEMBER 31, 2007 JUNE 30, 2007
----------------- --------------
(unaudited)
Increase (Decrease) in Net Assets:
Operations:
Net investment income............................. $ 32,770,286 $ 48,752,522
Net realized gain................................. 20,473 47,313
-------------- --------------
Net Increase................................... 32,790,759 48,799,835
Dividends to shareholders from net investment
income.......................................... (32,768,233) (48,753,391)
Net increase from transactions in shares of
beneficial interest............................. 700,543,237 468,446,364
-------------- --------------
Net Increase................................... 700,565,763 468,492,808
Net Assets:
Beginning of period............................... 1,785,496,548 1,317,003,740
-------------- --------------
End of Period
(Including accumulated undistributed net
investment income of $8,703 and $6,650,
respectively)..................................... $2,486,062,311 $1,785,496,548
============== ==============
</Table>
See Notes to Financial Statements
14
Active Assets California Tax-Free Trust
NOTES TO FINANCIAL STATEMENTS - DECEMBER 31, 2007 (UNAUDITED)
1. Organization and Accounting Policies
Active Assets California Tax-Free Trust (the "Fund") is registered under the
Investment Company Act of 1940, as amended (the "Act"), as a diversified, open-
end management investment company. The Fund's investment objective is to provide
a high level of daily income which is exempt from federal and California income
tax consistent with stability of principal and liquidity. The Fund was organized
as a Massachusetts business trust on July 10, 1991 and commenced operations on
November 12, 1991.
The following is a summary of significant accounting policies:
A. Valuation of Investments -- Portfolio securities are valued at amortized
cost, which approximates market value, in accordance with Rule 2a-7 under the
Act.
B. Accounting for Investments -- Security transactions are accounted for on the
trade date (date the order to buy or sell is executed). Realized gains and
losses on security transactions are determined by the identified cost method.
Discounts are accreted and premiums are amortized over the life of the
respective securities and are included in interest income. Interest income is
accrued daily.
C. Federal Income Tax Policy -- It is the Fund's policy to comply with the
requirements of Subchapter M of the Internal Revenue Code applicable to
regulated investment companies and to distribute substantially all of its
taxable income to its shareholders. Therefore, no provision for federal income
taxes is required. The Fund files tax returns with the U.S. Internal Revenue
Service and New York. The Fund adopted the provisions of the Financial
Accounting Standards Board ("FASB") Interpretation No. 48 ("FIN 48") Accounting
for Uncertainty in Income Taxes on June 29, 2007. FIN 48 sets forth a minimum
threshold for financial statement recognition of the benefit of a tax position
taken or expected to be taken in a tax return. The implementation of FIN 48 did
not result in any unrecognized tax benefits in the accompanying financial
statements. If applicable, the Fund recognizes interest accrued related to
unrecognized tax benefits in interest expense and penalties in other expenses in
the Statement of Operations. Each of the tax years in the four year period ended
December 31, 2007, remains subject to examination by taxing authorities.
D. Dividends and Distributions to Shareholders -- The Fund records dividends and
distributions to shareholders as of the close of each business day.
E. Use of Estimates -- The preparation of financial statements in accordance
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts and disclosures.
Actual results could differ from those estimates.
15
Active Assets California Tax-Free Trust
NOTES TO FINANCIAL STATEMENTS - DECEMBER 31, 2007 (UNAUDITED) continued
2. Investment Advisory/Administration Agreements
Pursuant to an Investment Advisory Agreement with Morgan Stanley Investment
Advisors Inc. (the "Investment Adviser"), the Fund pays the Investment Adviser
an advisory fee, accrued daily and payable monthly, by applying the following
annual rates to the net assets of the Fund determined as of the close of each
business day: 0.45% to the portion of the daily net assets not exceeding $500
million; 0.375% to the portion of the daily net assets exceeding $500 million
but not exceeding $750 million; 0.325% to the portion of the daily net assets
exceeding $750 million but not exceeding $1 billion; 0.30% to the portion of the
daily net assets exceeding $1 billion but not exceeding $1.5 billion; 0.275% to
the portion of the daily net assets exceeding $1.5 billion but not exceeding $2
billion; 0.25% to the portion of the daily net assets exceeding $2 billion but
not exceeding $2.5 billion; 0.225% to the portion of the daily net assets
exceeding $2.5 billion but not exceeding $3 billion; and 0.20% to the portion of
the daily net assets exceeding $3 billion.
Pursuant to an Administration Agreement with Morgan Stanley Services Company
Inc. (the "Administrator"), an affiliate of the Investment Adviser, the Fund
pays an administration fee, accrued daily and payable monthly, by applying the
annual rate of 0.05% to the Fund's daily net assets.
Under an agreement between the Administrator and State Street Bank and Trust
Company ("State Street"), State Street provides certain administrative services
to the Fund. For such services, the Administrator pays State Street a portion of
the fee the Administrator receives from the Fund.
3. Plan of Distribution
Morgan Stanley Distributors Inc. (the "Distributor"), an affiliate of the
Investment Adviser and Administrator, is the distributor of the Fund's shares
and in accordance with a Plan of Distribution (the "Plan") pursuant to Rule 12b-
1 under the Act, finances certain expenses in connection with the promotion of
sales of Fund shares.
Reimbursements for these expenses are made in monthly payments by the Fund to
the Distributor, which will in no event exceed an amount equal to a payment at
the annual rate of 0.15% of the Fund's average daily net assets during the
month. Expenses incurred by the Distributor pursuant to the Plan in any fiscal
year will not be reimbursed by the Fund through payments accrued in any
subsequent fiscal year. For the six months ended December 31, 2007, the
distribution fee was accrued at the annual rate of 0.10%.
16
Active Assets California Tax-Free Trust
NOTES TO FINANCIAL STATEMENTS - DECEMBER 31, 2007 (UNAUDITED) continued
4. Security Transactions and Transactions with Affiliates
The cost of purchases and proceeds from sales/maturities of portfolio securities
for the six months ended December 31, 2007, aggregated $3,919,948,608 and
$3,398,402,477, respectively.
Morgan Stanley Trust, an affiliate of the Investment Adviser, Administrator and
Distributor, is the Fund's transfer agent.
The Fund has an unfunded noncontributory defined benefit pension plan covering
certain independent Trustees of the Fund who will have served as independent
Trustees for at least five years at the time of retirement. Benefits under this
plan are based on factors which include years of service and compensation. The
Trustees voted to close the plan to new participants and eliminate the future
benefits growth due to increases to compensation after July 31, 2003. Aggregate
pension costs for the six months ended December 31, 2007, included in Trustees'
fees and expenses in the Statement of Operations amounted to $2,560. At December
31, 2007, the Fund had an accrued pension liability of $55,987 which is included
in accrued expenses in the Statement of Assets and Liabilities.
The Fund has an unfunded Deferred Compensation Plan (the "Compensation Plan")
which allows each independent Trustee to defer payment of all, or a portion, of
the fees he or she receives for serving on the Board of Trustees. Each eligible
Trustee generally may elect to have the deferred amounts credited with a return
equal to the total return on one or more of the Morgan Stanley funds that are
offered as investment options under the Compensation Plan.
Appreciation/depreciation and distributions received from these investments are
recorded with an offsetting increase/decrease in the deferred compensation
obligation and do not affect the net asset value of the Fund.
5. Shares of Beneficial Interest
Transactions in shares of beneficial interest, at $1.00 per share, were as
follows:
<Table>
<Caption>
FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED
DECEMBER 31, 2007 JUNE 30, 2007
----------------- --------------
(unaudited)
Shares sold........................................ 5,876,737,889 8,610,185,532
Shares issued in reinvestment of dividends......... 32,753,694 48,742,933
-------------- --------------
5,909,491,583 8,658,928,465
Shares redeemed.................................... (5,208,948,346) (8,190,482,101)
-------------- --------------
Net increase in shares outstanding................. 700,543,237 468,446,364
============== ==============
</Table>
17
Active Assets California Tax-Free Trust
NOTES TO FINANCIAL STATEMENTS - DECEMBER 31, 2007 (UNAUDITED) continued
6. Expense Offset
The expense offset represents a reduction of the fees and expenses for interest
earned on cash balances maintained by the Fund with the transfer agent and
custodian.
7. Accounting Pronouncement
In September 2006, Statement of Financial Accounting Standards No. 157, Fair
Value Measurements (SFAS 157), was issued and is effective for fiscal years
beginning after November 15, 2007. SFAS 157 defines fair value, establishes a
framework for measuring fair value and expands disclosures about fair value
measurements. Management is currently evaluating the impact the adoption of SFAS
157 will have on the Fund's financial statement disclosures.
18
Active Assets California Tax-Free Trust
FINANCIAL HIGHLIGHTS
Selected ratios and per share data for a share of beneficial interest
outstanding throughout each period:
<Table>
<Caption>
FOR THE SIX FOR THE YEAR ENDED JUNE 30,
MONTHS ENDED --------------------------------------------------------
DECEMBER 2007 2007 2006 2005 2004 2003
------------- ---------- ---------- -------- -------- --------
(unaudited)
Selected Per Share Data:
Net asset value, beginning of period......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------ ------ ------ ------ ------ ------
Net income from investment operations........ 0.015 0.030 0.023 0.012 0.003 0.006
Less dividends from net investment income.... (0.015) (0.030) (0.023) (0.012) (0.003) (0.006)
------- ------- ------- ------- ------- -------
Net asset value, end of period............... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ====== ====== ====== ====== ======
Total Return................................. 1.54%(1) 3.02% 2.37% 1.17% 0.35% 0.63%
Ratios to Average Net Assets:
Total expenses (before expense offset)....... 0.52%(2) 0.55% 0.59%(3) 0.62%(3) 0.61% 0.60%
Net investment income........................ 3.00%(2) 2.99% 2.42% 1.16% 0.35% 0.63%
Supplemental Data:
Net assets, end of period, in thousands...... $2,486,062 $1,785,497 $1,317,004 $704,291 $687,800 $762,448
</Table>
- ----------
<Table>
(1) Not annualized.
(2) Annualized.
(3) Does not reflect the effect of expense offset of 0.01%.
</Table>
19
TRUSTEES
Frank L. Bowman
Michael Bozic
Kathleen A. Dennis
James F. Higgins
Dr. Manuel H. Johnson
Joseph J. Kearns
Michael F. Klein
Michael E. Nugent
W. Allen Reed
Fergus Reid
OFFICERS
Michael E. Nugent
Chairperson of the Board
Ronald E. Robison
President and Principal Executive Officer
J. David Germany
Vice President
Dennis F. Shea
Vice President
Amy R. Doberman
Vice President
Carsten Otto
Chief Compliance Officer
Stefanie V. Chang Yu
Vice President
Francis J. Smith
Treasurer and Chief Financial Officer
Mary E. Mullin
Secretary
TRANSFER AGENT
Morgan Stanley Trust
Harborside Financial Center, Plaza Two
Jersey City, New Jersey 07311
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Deloitte & Touche LLP
Two World Financial Center
New York, New York 10281
LEGAL COUNSEL
Clifford Chance US LLP
31 West 52nd Street
New York, New York 10019
COUNSEL TO THE INDEPENDENT TRUSTEES
Kramer Levin Naftalis & Frankel LLP
1177 Avenue of the Americas
New York, New York 10036
INVESTMENT ADVISER
Morgan Stanley Investment Advisors Inc.
522 Fifth Avenue
New York, New York 10036
The financial statements included herein have been taken from the records of the
Fund without examination by the independent auditors and accordingly they do not
express an opinion thereon.
This report is submitted for the general information of the shareholders of the
Fund. For more detailed information about the Fund, its fees and expenses and
other pertinent information, please read its Prospectus. The Fund's Statement of
Additional information contains additional information about the Fund, including
its trustees. It is available, without charge, by calling (800) 869-NEWS.
This report is not authorized for distribution to prospective investors in the
Fund unless preceded or accompanied by an effective Prospectus. Read the
Prospectus carefully before investing.
Morgan Stanley Distributors Inc., member FINRA
(c) 2007 Morgan Stanley
[MORGAN STANLEY LOGO]
MORGAN STANLEY FUNDS
Active Assets
California
Tax-Free Trust
Semiannual Report
December 31, 2007
AACSAN
IU08-00775P-Y 12/07
Item 2. Code of Ethics.
Not applicable for semiannual reports.
Item 3. Audit Committee Financial Expert.
Not applicable for semiannual reports.
Item 4. Principal Accountant Fees and Services
Not applicable for semiannual reports.
Item 5. Audit Committee of Listed Registrants.
Not applicable for semiannual reports.
Item 6.
Refer to Item 1.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.
Not applicable for semiannual reports.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Applicable only to reports filed by closed-end funds.
Item 9. Closed-End Fund Repurchases
Applicable to reports filed by closed-end funds.
Item 10. Submission of Matters to a Vote of Security Holders
Not applicable.
Item 11. Controls and Procedures
(a) The Fund's principal executive officer and principal financial officer have
concluded that the Fund's disclosure controls and procedures are sufficient to
ensure that information required to be disclosed by the Fund in this Form N-CSR
was recorded, processed, summarized and reported within the time periods
specified in the Securities and Exchange Commission's rules and forms, based
upon such officers' evaluation of these controls and procedures as of a date
within 90 days of the filing date of the report.
(b) There were no changes in the registrant's internal control over financial
reporting that occurred during the second fiscal quarter of the period covered
by this report that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial reporting.
Item 12. Exhibits
(a) Code of Ethics - Not applicable for semiannual reports.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant are attached hereto as part of EX-99.CERT.
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
Active Assets California Tax-Free Trust
/s/ Ronald E. Robison
Ronald E. Robison
Principal Executive Officer
February 15, 2008
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed by the following
persons on behalf of the registrant and in the capacities and on the dates
indicated.
/s/ Ronald E. Robison
Ronald E. Robison
Principal Executive Officer
February 15, 2008
/s/ Francis Smith
Francis Smith
Principal Financial Officer
February 15, 2008
3