0001193125-12-169733.txt : 20120419 0001193125-12-169733.hdr.sgml : 20120419 20120419085008 ACCESSION NUMBER: 0001193125-12-169733 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20120229 FILED AS OF DATE: 20120419 DATE AS OF CHANGE: 20120419 EFFECTIVENESS DATE: 20120419 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MFS CALIFORNIA MUNICIPAL FUND CENTRAL INDEX KEY: 0001092896 IRS NUMBER: 043483817 STATE OF INCORPORATION: MA FISCAL YEAR END: 1130 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-09537 FILM NUMBER: 12767348 BUSINESS ADDRESS: STREET 1: 500 BOYLSTON STREET STREET 2: 20TH FL LEGAL DEPT. CITY: BOSTON STATE: MA ZIP: 02116 BUSINESS PHONE: 6179545000 MAIL ADDRESS: STREET 1: 500 BOYLSTON STREET STREET 2: 20TH FL LEGAL DEPT. CITY: BOSTON STATE: MA ZIP: 02116 FORMER COMPANY: FORMER CONFORMED NAME: MFS CALIFORNIA INSURED MUNICIPAL FUND DATE OF NAME CHANGE: 20070629 FORMER COMPANY: FORMER CONFORMED NAME: COLONIAL CALIFORNIA INSURED MUNICIPAL FUND DATE OF NAME CHANGE: 19990927 FORMER COMPANY: FORMER CONFORMED NAME: PREMIER CALIFORNIA MUNICIPAL INCOME FUND DATE OF NAME CHANGE: 19990809 N-Q 1 d306791dnq.htm MFS CALIFORNIA MUNICIPAL FUND N-Q MFS CALIFORNIA MUNICIPAL FUND N-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF

REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-09537

MFS CALIFORNIA MUNICIPAL FUND

(Exact name of registrant as specified in charter)

500 Boylston Street, Boston, Massachusetts 02116

(Address of principal executive offices) (Zip code)

Susan S. Newton

Massachusetts Financial Services Company

500 Boylston Street

Boston, Massachusetts 02116

(Name and address of agents for service)

Registrant’s telephone number, including area code: (617) 954-5000

Date of fiscal year end: November 30

Date of reporting period: February 29, 2012


ITEM 1. SCHEDULE OF INVESTMENTS.


LOGO

 

MFS® California Municipal Fund

 

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QUARTERLY REPORT

February 29, 2012


PORTFOLIO OF INVESTMENTS

2/29/12 (unaudited)

 

The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset classes.

Issuer    Shares/Par     Value ($)  
    
Municipal Bonds - 168.6%                 
Airport Revenue - 7.9%                 
Los Angeles, CA, Department of Airports Rev. (Los Angeles International), “C”, BHAC, 5.25%, 2038    $ 750,000      $ 819,856   
Orange County, CA, Airport Rev., “A”, 5%, 2031      190,000        207,490   
San Diego County, CA, Regional Airport Authority Rev., “A”, 5%, 2021      500,000        596,690   
San Francisco, CA, City & County Airports Commission, International Airport Rev., “A”, 5%, 2030      285,000        311,066   
San Francisco, CA, City & County Airports Commission, International Airport Rev., “A”, 5%, 2031      150,000        162,542   
San Jose, CA, Airport Rev., “A-2”, 5.25%, 2034      440,000        474,976   
    

 

 

 
             $ 2,572,620   
General Obligations - General Purpose - 11.2%                 
Commonwealth of Puerto Rico, “A”, 5.5%, 2018    $ 370,000      $ 421,293   
Commonwealth of Puerto Rico, “A”, NATL, 5.5%, 2020      435,000        489,297   
State of California, AMBAC, 6%, 2017      1,000,000        1,223,720   
State of California, 5%, 2019      300,000        363,003   
State of California, 5.5%, 2040      630,000        694,978   
State of California, 5.25%, 2040      415,000        451,981   
    

 

 

 
             $ 3,644,272   
General Obligations - Schools - 23.5%                 
Alhambra, CA, Unified School District, “B”, ASSD GTY, 5.25%, 2028    $ 500,000      $ 563,230   
Banning, CA, Unified School District (Election of 2006), “B”, ASSD GTY, 5.25%, 2033      500,000        544,120   
Chabot-Las Positas, CA, Community College (Election of 2004), “B”, AMBAC, 5%, 2030      60,000        64,480   
Lake Tahoe, CA, Unified School District (Election of 2008), Capital Appreciation, AGM, 0%, 2045      515,000        180,240   
Montebello, CA, Unified School District (Election of 2004), “A-1”, ASSD GTY, 5.25%, 2034      355,000        389,623   
Napa Valley, CA, Unified School District, 5%, 2020      225,000        273,679   
Peralta, CA, Community College District, AGM, 5%, 2016      500,000        580,590   
Pittsburg, CA, Unified School District, “B”, AGM, 5.5%, 2034      500,000        549,995   
Pomona, CA, Unified School District, “A”, NATL, 6.55%, 2029      1,000,000        1,255,210   
San Diego, CA, Community College (Election of 2002), 5.25%, 2033      125,000        144,176   
San Joaquin, CA, Delta Community College District (Election of 2004), “B”, Capital Appreciation, AGM, 0.00%, 2018      400,000        334,104   
Vallejo City, CA, Unified School District, “A”, NATL, 5.9%, 2025      500,000        533,310   
Victor, CA, Elementary School District (Election of 2008), “A”, ASSD GTY, 5.125%, 2034      500,000        539,715   
Washington, CA, Yolo County Unified School District (New High School Project), 5%, 2021      450,000        479,997   
West Contra Costa, CA, Unified School District, “A”, NATL, 5.7%, 2023      500,000        608,120   
West Covina, CA, Unified School District, “A”, NATL, 5.8%, 2021      500,000        583,900   
    

 

 

 
             $ 7,624,489   
Healthcare Revenue - Hospitals - 21.6%                 
ABAG Finance Authority for Non-Profit Corps, CA, Rev. (Sharp Healthcare), 6.25%, 2039    $ 505,000      $ 579,972   
ABAG Finance Authority for Non-Profit Corps, CA, Rev. (Sharp Healthcare), “A”, 5%, 2026      110,000        122,142   
California Health Facilities Financing Authority Rev. (Cedars-Sinai Medical Center), 5%, 2034      250,000        258,233   
California Health Facilities Financing Authority Rev. (Scripps Health), “A”, 5%, 2032      150,000        167,310   
California Health Facilities Financing Authority Rev. (Scripps Health), “A”, 5%, 2040      255,000        273,827   
California Health Facilities Financing Authority Rev. (Sutter Health), “B”, 5.5%, 2020      500,000        623,025   
California Health Facilities Financing Authority Rev. (Sutter Health), “B”, 5.875%, 2031      500,000        596,645   
California Municipal Finance Authority, COP (Community Hospitals of Central California), 5.25%, 2027      250,000        256,943   
California Statewide Communities Development Authority Rev. (Adventist), ASSD GTY, 5%, 2037      500,000        519,435   
California Statewide Communities Development Authority Rev. (Catholic Healthcare West), “K”, ASSD GTY, 5.5%, 2041      1,000,000        1,048,720   
California Statewide Communities Development Authority Rev. (Enloe Medical Center), “A”, CALHF, 5.5%, 2023      500,000        554,500   
California Statewide Communities Development Authority Rev. (Huntington Memorial Hospital), 5%, 2035      535,000        543,961   
California Statewide Communities Development Authority Rev. (Santa Ynez Valley Cottage Hospital), 5.25%, 2030      260,000        288,993   
California Statewide Communities Development Authority Rev. (Trinity Health Corp.), 5%, 2041      450,000        486,729   

 

1


Portfolio of Investments (unaudited) – continued

 

Issuer    Shares/Par     Value ($)  
    
Municipal Bonds - continued                 
Healthcare Revenue - Hospitals - continued                 
Santa Clara County, CA, Financing Authority Rev. (El Camino Hospital), AMBAC, 5.125%, 2041    $ 400,000      $ 411,668   
Upland, CA, COP (San Antonio Community Hospital), 6.375%, 2032      250,000        287,140   
    

 

 

 
             $ 7,019,243   
Healthcare Revenue - Long Term Care - 3.6%                 
ABAG Finance Authority for Non-Profit Corps., CA, Rev. (Episcopal Senior Communities), 6.125%, 2041    $ 150,000      $ 157,086   
ABAG Finance Authority for Non-Profit Corps., CA, Rev. (Odd Fellows Home), NATL, 6%, 2024      1,000,000        1,003,630   
    

 

 

 
             $ 1,160,716   
Miscellaneous Revenue - Other - 1.8%                 
ABAG Finance Authority for Non-Profit Corps., CA, Rev. (Jackson Lab), 5.75%, 2037    $ 385,000      $ 405,821   
California Infrastructure & Economic Development Bank Rev. (Walt Disney Family Museum), 5.25%, 2033      160,000        170,334   
    

 

 

 
             $ 576,155   
Sales & Excise Tax Revenue - 2.1%                 
California Economic Recovery, “A”, 5%, 2020    $ 250,000      $ 302,738   
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, 0%, 2032      250,000        245,568   
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, AMBAC, 0%, 2054      1,625,000        134,664   
    

 

 

 
             $ 682,970   
Single Family Housing - Local - 0.0%                 
California Rural Home Mortgage Finance Authority Rev., Mortgage Backed Securities Program, “A”, GNMA, 6.35%, 2029    $ 5,000      $ 5,095   
California Rural Home Mortgage Finance Authority Rev., Mortgage Backed Securities Program, “B4”, FHA, 6.35%, 2029      5,000        5,157   
    

 

 

 
             $ 10,252   
Single Family Housing - Other - 1.6%                 
California Department of Veterans Affairs, Home Purchase Rev., “A”, 4.5%, 2028    $ 500,000      $ 516,390   
Single Family Housing - State - 7.5%                 
California Housing Finance Agency Rev. (Home Mortgage), “E”, 4.75%, 2030    $ 305,000      $ 284,367   
California Housing Finance Agency Rev. (Home Mortgage), “G”, 4.95%, 2023      295,000        296,746   
California Housing Finance Agency Rev. (Home Mortgage), “K”, 4.55%, 2021      775,000        762,747   
California Housing Finance Agency Rev. (Home Mortgage), “K”, 5.3%, 2023      365,000        365,661   
California Housing Finance Agency Rev. (Home Mortgage), “L”, 5.45%, 2033      555,000        556,915   
California Housing Finance Agency Rev. (Home Mortgage), “L”, FNMA, 5.5%, 2038      165,000        165,155   
    

 

 

 
             $ 2,431,591   
Solid Waste Revenue - 1.5%                 
Salinas Valley, CA, Solid Waste Authority Rev., AMBAC, 5.125%, 2022    $ 500,000      $ 501,605   
State & Agency - Other - 1.4%                 
Sacramento County, CA, Public Facilities Project, COP, AMBAC, 4.75%, 2027    $ 500,000      $ 468,550   
State & Local Agencies - 22.3%                 
Compton, CA, Public Finance Authority, AMBAC, 5%, 2032    $ 500,000      $ 403,060   
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., FGIC, 5%, 2035      255,000        257,484   
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., BHAC, 5%, 2038      1,000,000        1,017,260   
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., Enhanced, “A”, FGIC, 5%, 2035      1,000,000        1,006,160   
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., Enhanced, “A”, FGIC, 5%, 2038      1,000,000        1,003,180   
Huntington Park, CA, Public Financing Authority Rev., “A”, AGM, 5.25%, 2019      500,000        548,520   
Los Angeles County, CA, Schools Regionalized Business Service Corp., Pooled Financing, Capital Appreciation, “A”, AMBAC, 0%, 2018      2,020,000        1,446,684   
Los Angeles County, CA, Schools Regionalized Business Service Corp., Pooled Financing, Capital Appreciation, “A”, AMBAC, 0%, 2023      2,220,000        1,117,459   
Los Angeles, CA, Municipal Improvement Corp. Lease Rev., “B”, ASSD GTY, 5.5%, 2030      390,000        438,224   
    

 

 

 
             $ 7,238,031   

 

2


Portfolio of Investments (unaudited) – continued

 

Issuer    Shares/Par     Value ($)  
    
Municipal Bonds - continued                 
Tax Assessment - 11.4%                 
Fontana, CA, Public Finance Authority, Tax Allocation Rev. (Sub Lien North Fontana Redevelopment), “A”, AMBAC, 5%, 2029    $ 1,000,000      $ 1,008,090   
Huntington Beach, CA, Community Facilities District, Special Tax (Grand Coast Resort), “2000-1”, 6.45%, 2031      100,000        101,140   
Lancaster, CA, Financing Authority, Tax Allocation Rev. (Projects No. 5 & 6 Redevelopment Projects), NATL, 5.25%, 2020      825,000        828,663   
San Diego, CA, Redevelopment Agency, Tax Allocation Rev. (Centre City), “A”, AMBAC, 5.25%, 2025      500,000        527,125   
San Dieguito, CA, Public Facilities Authority, “A”, AMBAC, 5%, 2032      500,000        517,980   
San Jose, CA, Redevelopment Agency, Tax Allocation (Merged Area Redevelopment Project), “C”, NATL, 4.25%, 2030      900,000        732,825   
    

 

 

 
             $ 3,715,823   
Tobacco - 3.8%                 
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., “A-1”, 5.125%, 2047    $ 1,000,000      $ 684,410   
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., “A-1”, 5.75%, 2047      715,000        547,154   
    

 

 

 
             $ 1,231,564   
Toll Roads - 0.8%                 
Foothill/Eastern Corridor Agency, CA, Toll Road Rev., NATL, 5.125%, 2019    $ 250,000      $ 250,073   
Transportation - Special Tax - 2.5%                 
Commonwealth of Puerto Rico Highway & Transportation Authority, Highway Rev., “K”, 5%, 2014    $ 235,000      $ 252,190   
Commonwealth of Puerto Rico Highway & Transportation Authority, Highway Rev., “Y”, AGM, 5.5%, 2016 (c)      450,000        545,868   
    

 

 

 
             $ 798,058   
Universities - Colleges - 7.8%                 
California Educational Facilities Authority Rev. (Dominican University of California), 5%, 2025    $ 120,000      $ 122,887   
California Educational Facilities Authority Rev. (University of San Francisco), 6.125%, 2030      285,000        338,503   
California Public Works Board Lease Rev. (The Regents of the University of California), 5%, 2028      375,000        430,740   
California State University Rev., “A”, 5%, 2024      370,000        442,590   
University Enterprises, Inc. (Auxiliary Organization), “A”, FGIC, 4.375%, 2030      500,000        503,190   
University of California Rev., “U”, 5%, 2017      570,000        690,270   
    

 

 

 
             $ 2,528,180   
Universities - Secondary Schools - 1.4%                 
California Statewide Communities Development Authority, School Facility Rev. (Alliance for College-Ready Public Schools), “A”, 6.1%, 2032    $ 150,000      $ 150,831   
California Statewide Communities Development Authority, School Facility Rev. (Alliance for College-Ready Public Schools), “A”, 6.375%, 2047      315,000        316,830   
    

 

 

 
             $ 467,661   
Utilities - Municipal Owned - 13.3%                 
California Department of Water Resources, Power Supply Rev., “L”, 5%, 2019    $ 805,000      $ 996,091   
California Department of Water Resources, Power Supply Rev., “N”, 5%, 2020      205,000        255,252   
Imperial Irrigation District Electric Rev., “A”, 5%, 2017      500,000        601,760   
Los Angeles, CA, Department of Water & Power Rev., “A”, 5%, 2019      590,000        737,783   
Northern California Power Agency, Capital Facilities Rev., “A”, 5.25%, 2024      390,000        446,616   
Sacramento, CA, Municipal Utility District Rev., “U”, AGM, 5%, 2019      750,000        897,930   
Vernon, CA, Electric System Rev., “A”, 5.5%, 2041      370,000        383,327   
    

 

 

 
             $ 4,318,759   
Utilities - Other - 2.8%                 
California M-S-R Energy Authority Gas Rev., “A”, 6.5%, 2039    $ 245,000      $ 301,000   
Southern California Public Power Authority (Natural Gas Project No. 1), “A”, 5%, 2033      585,000        591,154   
    

 

 

 
             $ 892,154   
Water & Sewer Utility Revenue - 18.8%                 
Atwater, CA, Public Financing Authority Wastewater Rev., ASSD GTY, 5%, 2034    $ 500,000      $ 524,475   
California Department of Water Resources (Center Valley Project), “A-E”, 5%, 2028      500,000        574,580   
Chino Basin, CA, Regional Financing Authority Rev. (Inland Empire Utilities Agency), “A”, AMBAC, 5%, 2038 (f)      1,000,000        1,057,900   
Commonwealth of Puerto Rico Aqueduct & Sewer Authority Rev., “A”, 5%, 2033      135,000        134,991   
Commonwealth of Puerto Rico Aqueduct & Sewer Authority Rev., “A”, 5.125%, 2037      65,000        65,021   

 

3


Portfolio of Investments (unaudited) – continued

 

Issuer    Shares/Par     Value ($)  
    
Municipal Bonds - continued                 
Water & Sewer Utility Revenue - continued                 
Commonwealth of Puerto Rico Aqueduct & Sewer Authority Rev., “A”, 5.75%, 2037    $ 75,000      $ 79,798   
Commonwealth of Puerto Rico Aqueduct & Sewer Authority Rev., “A”, 5.25%, 2042      35,000        35,053   
Los Angeles, CA, Department of Water & Power Waterworks Rev., “C”, NATL, 5%, 2029      500,000        522,250   
Madera, CA, Irrigation Financing Authority Rev., 6.5%, 2040      440,000        483,450   
Norco, CA, Financing Authority Enterprise Rev., AGM, 5.625%, 2039      215,000        235,711   
Sacramento, CA, Municipal Utility District, “X”, 5%, 2025      370,000        436,463   
San Francisco, CA, City & County Public Utilities Commission Water Rev., “A”, 5%, 2023      445,000        557,242   
San Francisco, CA, City & County Public Utilities Commission Water Rev., “A”, 5.25%, 2031      335,000        391,441   
Sonoma County, CA, Water Agency Rev., “A”, AGM, 5%, 2036      600,000        635,784   
Southern California Metropolitan Water District Rev., “A”, 5%, 2028      325,000        374,780   
    

 

 

 
             $ 6,108,939   
Total Municipal Bonds            $ 54,758,095   
Money Market Funds - 6.6%                 
MFS Institutional Money Market Portfolio, 0.1%, at Net Asset Value (v)      2,152,749      $ 2,152,749   
Total Investments            $ 56,910,844   
Other Assets, Less Liabilities - 0.1%              27,100   
Preferred shares (Issued by the Fund) - (75.3)%              (24,450,000
Net Assets applicable to common shares - 100.0%            $ 32,487,944   

 

(c)   Refunded bond.
(f)   All or a portion of the security has been segregated as collateral for open futures contracts.
(v)   Underlying affiliated fund that is available only to investment companies managed by MFS. The rate quoted for the MFS Institutional Money Market Portfolio is the annualized seven-day yield of the fund at period end.

The following abbreviations are used in this report and are defined:

 

COP   Certificate of Participation

 

Insurers     
AGM   Assured Guaranty Municipal
AMBAC   AMBAC Indemnity Corp.
ASSD GTY   Assured Guaranty Insurance Co.
BHAC   Berkshire Hathaway Assurance Corp.
CALHF   California Housing Finance Agency
FGIC   Financial Guaranty Insurance Co.
FHA   Federal Housing Administration
FNMA   Federal National Mortgage Assn.
GNMA   Government National Mortgage Assn.
NATL   National Public Finance Guarantee Corp.

Derivative Contracts at 2/29/12

Futures Contracts Outstanding at 2/29/12

 

Description    Currency      Contracts      Value    Expiration Date      Unrealized
Appreciation
(Depreciation)
 
Liability Derivatives               
Interest Rate Futures               
U.S. Treasury Note 10 yr (Short)      USD         20       $2,619,063      June - 2012         $(850
U.S. Treasury Bond 30 yr (Short)      USD         4       566,625      June - 2012         (389
              

 

 

 
                 $(1,239
              

 

 

 

At February 29, 2012, the fund had sufficient cash and/or other liquid securities to cover any commitments under these derivative contracts.

See attached supplemental information. For more information see notes to financial statements as disclosed in the most recent semiannual or annual report.

 

4


Supplemental Information

2/29/12 (unaudited)

 

(1)   Investment Valuations

Debt instruments and floating rate loans (other than short-term instruments), including restricted debt instruments, are generally valued at an evaluated or composite bid as provided by a third-party pricing service. Short-term instruments with a maturity at issuance of 60 days or less generally are valued at amortized cost, which approximates market value. Futures contracts are generally valued at last posted settlement price as provided by a third-party pricing service on the market on which they are primarily traded. Futures contracts for which there were no trades that day for a particular position are generally valued at the closing bid quotation as provided by a third-party pricing service on the market on which such futures contracts are primarily traded. Open-end investment companies are generally valued at net asset value per share. Securities and other assets generally valued on the basis of information from a third-party pricing service may also be valued at a broker/dealer bid quotation. Values obtained from third-party pricing services can utilize both transaction data and market information such as yield, quality, coupon rate, maturity, type of issue, trading characteristics, and other market data.

The Board of Trustees has delegated primary responsibility for determining or causing to be determined the value of the fund’s investments (including any fair valuation) to the adviser pursuant to valuation policies and procedures approved by the Board. If the adviser determines that reliable market quotations are not readily available, investments are valued at fair value as determined in good faith by the adviser in accordance with such procedures under the oversight of the Board of Trustees. Under the fund’s valuation policies and procedures, market quotations are not considered to be readily available for most types of debt instruments and floating rate loans and many types of derivatives. These investments are generally valued at fair value based on information from third-party pricing services. In addition, investments may be valued at fair value if the adviser determines that an investment’s value has been materially affected by events occurring after the close of the exchange or market on which the investment is principally traded (such as foreign exchange or market) and prior to the determination of the fund’s net asset value, or after the halting of trading of a specific security where trading does not resume prior to the close of the exchange or market on which the security is principally traded. The adviser generally relies on third-party pricing services or other information (such as the correlation with price movements of similar securities in the same or other markets; the type, cost and investment characteristics of the security; the business and financial condition of the issuer; and trading and other market data) to assist in determining whether to fair value and at what value to fair value an investment. The value of an investment for purposes of calculating the fund’s net asset value can differ depending on the source and method used to determine value. When fair valuation is used, the value of an investment used to determine the fund’s net asset value may differ from quoted or published prices for the same investment. There can be no assurance that the fund could obtain the fair value assigned to an investment if it were to sell the investment at the same time at which the fund determines its net asset value per share.

Various inputs are used in determining the value of the fund’s assets or liabilities. These inputs are categorized into three broad levels. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fund’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment. Level 1 includes unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 includes other significant observable market-based inputs (including quoted prices for similar securities, interest rates, prepayment speed, and credit risk). Level 3 includes unobservable inputs, which may include the adviser’s own assumptions in determining the fair value of investments. Other financial instruments are derivative instruments not reflected in total investments, such as futures. The following is a summary of the levels used as of February 29, 2012 in valuing the fund’s assets or liabilities:

 

Investments at Value    Level 1      Level 2      Level 3      Total  
Municipal Bonds      $—         $54,758,095         $—         $54,758,095   
Mutual Funds      2,152,749                         2,152,749   
Total Investments      $2,152,749         $54,758,095         $—         $56,910,844   
Other Financial Instruments                            
Futures      $(1,239      $—         $—         $(1,239

For further information regarding security characteristics, see the Portfolio of Investments.

 

5


Supplemental Information (unaudited) – continued

 

 

(2)   Portfolio Securities

The cost and unrealized appreciation and depreciation in the value of the investments owned by the fund, as computed on a federal income tax basis, are as follows:

 

Aggregate cost      $54,104,437   
Gross unrealized appreciation      $3,416,907   
Gross unrealized depreciation      (610,500
Net unrealized appreciation (depreciation)      $2,806,407   

The aggregate cost above includes prior fiscal year end tax adjustments, if applicable.

 

(3)   Transactions in Underlying Affiliated Funds – Affiliated Issuers

An affiliated issuer may be considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. For the purposes of this report, the fund assumes the following to be affiliated issuers:

 

Underlying Affiliated Funds    Beginning
Shares/Par
Amount
     Acquisitions
Shares/Par
Amount
     Dispositions
Shares/Par
Amount
     Ending
Shares/Par
Amount
 
MFS Institutional Money Market Portfolio      2,533,794         3,401,682         (3,782,727      2,152,749   
Underlying Affiliated Funds    Realized
Gain (Loss)
     Capital Gain
Distributions
     Dividend
Income
     Ending
Value
 
MFS Institutional Money Market Portfolio      $—         $—         $325         $2,152,749   

 

6


ITEM 2. CONTROLS AND PROCEDURES.

 

(a) Based upon their evaluation of the effectiveness of the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)) as conducted within 90 days of the filing date of this Form N-Q, the registrant’s principal financial officer and principal executive officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.

 

(b) There were no changes in the registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

ITEM 3. EXHIBITS.

File as exhibits as part of this Form a separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2): Attached hereto.


Notice

A copy of the Agreement and Declaration of Trust, as amended, of the Registrant is on file with the Secretary of State of The Commonwealth of Massachusetts and notice is hereby given that this instrument is executed on behalf of the Registrant by an officer of the Registrant as an officer and not individually and the obligations of or arising out of this instrument are not binding upon any of the Trustees or shareholders individually, but are binding only upon the assets and property of the respective constituent series of the Registrant.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Registrant: MFS CALIFORNIA MUNICIPAL FUND

 

By (Signature and Title)*    JOHN M. CORCORAN
  John M. Corcoran, President

Date: April 13, 2012

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By (Signature and Title)*    JOHN M. CORCORAN
 

John M. Corcoran, President

(Principal Executive Officer)

Date: April 13, 2012

 

By (Signature and Title)*    DAVID L. DILORENZO
 

David L. DiLorenzo, Treasurer

(Principal Financial Officer

and Accounting Officer)

Date: April 13, 2012

 

* Print name and title of each signing officer under his or her signature.
EX-99.CERT 2 d306791dex99cert.htm CERTIFICATIONS CERTIFICATIONS

EX-99.CERT

MFS CALIFORNIA MUNICIPAL FUND

CERTIFICATION

I, David L. DiLorenzo, certify that:

 

1. I have reviewed this report on Form N-Q of MFS California Municipal Fund;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;

 

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

 

  a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

  b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

  c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and

 

  d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5. The registrant’s other certifying officer and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

  a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and


  b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: April 13, 2012     DAVID L. DILORENZO
    David L. DiLorenzo
   

Treasurer (Principal Financial Officer and

Accounting Officer)


EX-99.CERT

MFS CALIFORNIA MUNICIPAL FUND

CERTIFICATION

I, John M. Corcoran, certify that:

 

1. I have reviewed this report on Form N-Q of MFS California Municipal Fund;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;

 

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

 

  a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

  b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

  c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and

 

  d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5. The registrant’s other certifying officer and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

  a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and


  b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: April 13, 2012     JOHN M. CORCORAN
    John M. Corcoran
    President (Principal Executive Officer)
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