N-CSR 1 acctfmf8312019n-csr.htm N-CSR Document


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
811-03706
 
 
AMERICAN CENTURY CALIFORNIA TAX-FREE AND MUNICIPAL FUNDS
(Exact name of registrant as specified in charter)
 
 
4500 MAIN STREET, KANSAS CITY, MISSOURI
64111
(Address of principal executive offices)
(Zip Code)
 
 
CHARLES A. ETHERINGTON
4500 MAIN STREET, KANSAS CITY, MISSOURI 64111
(Name and address of agent for service)
 
 
Registrant’s telephone number, including area code:
816-531-5575
 
 
Date of fiscal year end:
08-31
 
 
Date of reporting period:
08-31-2019





ITEM 1. REPORTS TO STOCKHOLDERS.

Provided under separate cover.







acihorizblkd27.jpg
                  

 
 
 
Annual Report
 
 
 
August 31, 2019
 
 
 
California High-Yield Municipal Fund
 
Investor Class (BCHYX)
 
I Class (BCHIX)
 
Y Class (ACYHX)
 
A Class (CAYAX)
 
C Class (CAYCX)























Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the fund’s shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the fund or your financial intermediary electronically by calling or sending an email request to your appropriate contacts as listed on the back cover of this report.

You may elect to receive all future reports in paper free of charge. You can inform the fund or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by calling or sending an email request to your appropriate contacts as listed on the back cover of this report. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.







Table of Contents
President’s Letter
2

Performance
3

Portfolio Commentary

Fund Characteristics

Shareholder Fee Example

Schedule of Investments

Statement of Assets and Liabilities

Statement of Operations

Statement of Changes in Net Assets

Notes to Financial Statements

Financial Highlights

Report of Independent Registered Public Accounting Firm

Management

Approval of Management Agreement

Additional Information

 




















Any opinions expressed in this report reflect those of the author as of the date of the report, and do not necessarily represent the opinions of American Century Investments® or any other person in the American Century Investments organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century Investments disclaims any responsibility to update such opinions. These opinions may not be relied upon as investment advice and, because investment decisions made by American Century Investments funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century Investments fund. Security examples are used for representational purposes only and are not intended as recommendations to purchase or sell securities. Performance information for comparative indices and securities is provided to American Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.



President’s Letter

jthomasrev0514a66.jpg Jonathan Thomas

Dear Investor:

Thank you for reviewing this annual report for the period ended August 31, 2019. Annual reports help convey important information about fund returns, including market factors that affected performance during the reporting period. For additional updated investment and market insights, please visit our website, americancentury.com.

Falling Yields, Robust Demand Supported Muni Gains

After struggling in late 2018, municipal bonds (munis) rallied through the first eight months of 2019 to deliver solid performance for the entire 12-month reporting period. Within the asset class, high-yield munis generally outperformed investment-grade munis, and California munis modestly underperformed national munis, according to Bloomberg.

Early in the reporting period, U.S. fixed-income investors faced a challenging backdrop of healthy economic growth and rising interest rates. The Federal Reserve (Fed) raised rates in September, which helped keep U.S. Treasury and muni yields on an upward trajectory through early November. After that, yields plunged on moderating U.S. economic growth, heightened trade tensions and mounting stock market volatility. Along with implementing another rate hike in December, the Fed delivered an economic outlook that investors feared was too hawkish. This also drove yields lower.

Markets stabilized in early 2019. Investors’ concerns about U.S. growth eased, and the Fed changed course. The central bank ended its rate-hike campaign amid slowing global growth and muted inflation. The Fed’s increasingly dovish tone, which led to a July rate cut, and ongoing global economic uncertainties helped keep Treasury yields on a downward path through August.

In addition to benefiting from declining yields, munis advanced on stable credit fundamentals and favorable supply/demand dynamics. Demand was particularly robust in California and other high-tax states, where federal legislation capping state and local tax deductions continued to boost investor interest in munis.

We believe state and local finances in California and across the country should remain stable, providing continued support for munis. We also expect the supply/demand backdrop to remain favorable. Meanwhile, volatility, economic data, central bank policy and other factors will continue to affect the markets. These influences underscore the importance of using professionally managed portfolios in pursuit of investment goals. We appreciate your continued trust and confidence in us.

Sincerely,
image48a16.jpg
Jonathan Thomas
President and Chief Executive Officer
American Century Investments

2


Performance
Total Returns as of August 31, 2019
 
 
 
Average Annual Returns
 
 
Ticker
Symbol
1
 year
5
 years
10 years
Since
Inception
Inception
Date
Investor Class
BCHYX
9.06%
5.25%
6.48%
—
12/30/86
S&P Municipal Bond California 50% Investment Grade/50% High Yield Index
—
8.04%
6.00%
—
—
—
Bloomberg Barclays Municipal Bond Index
—
8.72%
3.84%
4.61%
—
—
I Class
BCHIX
9.38%
5.46%
—
6.26%
3/1/10
Y Class
ACYHX
9.31%
—
—
6.64%
4/10/17
A Class
CAYAX
 
 
 
 
1/31/03
No sales charge
 
8.79%
4.99%
6.21%
—
 
With sales charge
 
3.86%
4.03%
5.72%
—
 
C Class
CAYCX
7.98%
4.21%
5.42%
—
1/31/03
Average annual returns since inception are presented when ten years of performance history is not available. Fund returns would have been lower if a portion of the fees had not been waived.

Returns for the Bloomberg Barclays Municipal Bond Index are shown to cover the 10 year period because the S&P Municipal Bond California 50% Investment Grade/50% High Yield Index total return data became available as of December 30, 2011.

Sales charges include initial sales charges and contingent deferred sales charges (CDSCs), as applicable. A Class shares have a 4.50% maximum initial sales charge and may be subject to a maximum CDSC of 1.00%. C Class shares redeemed within 12 months of purchase are subject to a maximum CDSC of 1.00%. The SEC requires that mutual funds provide performance information net of maximum sales charges in all cases where charges could be applied.














Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Total returns for periods less than one year are not annualized. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. For additional information about the fund, please consult the prospectus.

3


Growth of $10,000 Over 10 Years
$10,000 investment made August 31, 2009
Performance for other share classes will vary due to differences in fee structure.
chart-fa38b57da0c355d8a13.jpg
Value on August 31, 2019
 
Investor Class — $18,737
 
 
Bloomberg Barclays Municipal Bond Index — $15,703
 
Since S&P Municipal Bond California 50% Investment Grade/50% High Yield Index total return data is only available from December 2011, it is not included in the line chart. Ending value of Investor Class would have been lower if a portion of the fees had not been waived.
Total Annual Fund Operating Expenses
Investor Class
I Class
Y Class
A Class
C Class
0.50%
0.30%
0.27%
0.75%
1.50%
The total annual fund operating expenses shown is as stated in the fund’s prospectus current as of the date of this report. The prospectus may vary from the expense ratio shown elsewhere in this report because it is based on a different time period, includes acquired fund fees and expenses, and, if applicable, does not include fee waivers or expense reimbursements.













Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Total returns for periods less than one year are not annualized. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. For additional information about the fund, please consult the prospectus.

4


Portfolio Commentary

Portfolio Managers: Alan Kruss, Joseph Gotelli and Steven Permut

Performance Summary

California High-Yield Municipal returned 9.06%* for the 12 months ended August 31, 2019. By comparison, the S&P Municipal Bond California 50% Investment Grade/50% High Yield Index returned 8.04%. Fund returns reflect operating expenses, while index returns do not.

Healthy municipal bond (muni) market fundamentals and favorable supply/demand trends helped the broad muni market advance and deliver strong results for the 12-month period. For the portfolio, duration positioning and sector allocation were the primary drivers of outperformance versus the index.

Yield, Supply/Demand Backdrops Boosted Munis

Early in the period, robust economic growth, rising inflation and a hawkish Federal Reserve (Fed) drove Treasury yields higher and bond prices lower. But this all came to a halt in late 2018. A slowing global growth outlook and U.S.-China trade tensions triggered severe volatility in the equity markets and drove investors into the perceived safe-haven U.S. Treasury market. This dramatic shift in sentiment drove Treasury yields sharply lower. In early 2019, the Fed abruptly halted its rate-tightening campaign and adopted a more dovish stance regarding interest rate policy, which eventually led to a quarter-point interest rate cut in July.

Meanwhile, the tax advantages of munis and healthy muni market fundamentals continued to attract investors to the asset class. At the same time, muni supply continued to decline. This dynamic, along with falling yields, drove robust returns for munis for the 12-month period. Despite their strong performance, though, munis were unable to keep pace with the rallying Treasury market. Within the muni sector, revenue bonds generally outperformed general obligation (GO) bonds, and California munis modestly underperformed national munis, according to Barclays. Lower-quality munis outperformed their higher-quality counterparts, as investor demand for yield helped drive gains for riskier securities.

Broad Fiscal Backdrop Remained Healthy; Credit Fundamentals Were Stable

State and local finances in California and across the U.S. remained relatively healthy. State revenues generally increased and continued to outperform budgets, largely due to the effects of federal tax reform and solid U.S. economic growth. Many states used their stronger-than-expected revenues to boost reserves.

In general, muni credit-quality trends in California were stable. Muni defaults were rare, and muni credit-rating upgrades slightly outpaced downgrades. Mounting legacy costs related to pensions and retiree health care obligations may continue to pressure select isolated credits, but we do not believe these issues are indicative of a systemic marketwide problem. 

Duration Positioning, Sector Allocation Contributed to Results

We maintained a longer duration than that of the index, which was a top contributor to the portfolio’s relative performance as interest rates declined.


* All fund returns referenced in this commentary are for Investor Class shares. Performance for other share classes will vary due to differences in fee structure; when Investor Class performance exceeds that of the index, other share classes may not. See page 3 for returns for all share classes.


5


Our sector exposure also contributed, mostly due to overweight positions relative to the index in the corporate muni, hospital and toll facilities sectors. Our underweight position in the tobacco settlement sector also was a prominent contributor.

Our underweight position in local GO bonds and overweight in the special tax sector detracted from results. However, our longer duration helped offset the effects of the less-rate-sensitive securities that populate the special tax sector. In terms of quality, our overweight allocation to securities with BBB credit ratings was a notable contributor to performance.

Security Selection Detracted

Overall, security selection weighed on relative results, primarily due to our selections in the hospital, corporate muni and tobacco settlement sectors. However, our selections among toll facilities, student housing and multifamily housing sectors added value.

Portfolio Positioning

Looking ahead, we expect U.S. economic growth to moderate toward trend growth levels (2.0% to 2.5% year-over-year growth) amid a continued low-interest-rate environment. However, uncertainties related to global economic growth, trade negotiations and central bank policy likely will keep market volatility in play. We believe this underscores the importance of active management.

We expect to maintain our duration and yield curve positions, finding little incentive to alter these strategies in the current environment. Within the California muni market, we expect credit fundamentals to remain stable. As always, fundamental credit research will drive our investment decisions. We will continue to focus on security selection, generally favoring charter schools and retirement communities within the high-yield segment of the muni market. We expect demand for tax-exempt munis to remain healthy, particularly in high-tax states, such as California, where the elimination and reduction of certain federal tax deductions have increased the attractiveness of munis. This dynamic should continue to provide broad support to the muni market.


6


Fund Characteristics
August 31, 2019
Portfolio at a Glance
Weighted Average Life to Maturity
19.1 years
Average Duration (Modified)
5.6 years
 
 
Top Five Sectors
% of fund investments
Special Tax
38%
Hospital
15%
Charter School
7%
Tobacco Settlement
7%
Toll Facilities
6%
 
 
Types of Investments in Portfolio
% of net assets
Municipal Securities
99.0%
Other Assets and Liabilities
1.0%

7


Shareholder Fee Example

Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption/exchange fees; and (2) ongoing costs, including management 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 your fund and to compare these costs with the ongoing cost of investing in other mutual funds.

The example is based on an investment of $1,000 made at the beginning of the period and held for the entire period from March 1, 2019 to August 31, 2019.

Actual Expenses

The table provides information about actual account values and actual expenses for each class. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. First, identify the share class you own. Then 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 under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

If you hold Investor Class shares of any American Century Investments fund, or I Class shares of the American Century Diversified Bond Fund, in an American Century Investments account (i.e., not a financial intermediary or retirement plan account), American Century Investments may charge you a $12.50 semiannual account maintenance fee if the value of those shares is less than $10,000. We will redeem shares automatically in one of your accounts to pay the $12.50 fee. In determining your total eligible investment amount, we will include your investments in all personal accounts (including American Century Investments Brokerage accounts) registered under your Social Security number. Personal accounts include individual accounts, joint accounts, UGMA/UTMA accounts, personal trusts, Coverdell Education Savings Accounts and IRAs (including traditional, Roth, Rollover, SEP-, SARSEP- and SIMPLE-IRAs), and certain other retirement accounts. If you have only business, business retirement, employer-sponsored or American Century Investments Brokerage accounts, you are currently not subject to this fee. If you are subject to the Account Maintenance Fee, your account value could be reduced by the fee amount.

Hypothetical Example for Comparison Purposes

The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund’s share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption/exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

8


 
Beginning
Account Value
3/1/19
Ending
Account Value
8/31/19
Expenses Paid
During Period(1) 
3/1/19 - 8/31/19
 
Annualized
Expense Ratio(1)
Actual
Investor Class
$1,000
$1,080.90
$2.62
0.50%
I Class
$1,000
$1,082.00
$1.57
0.30%
Y Class
$1,000
$1,082.20
$1.42
0.27%
A Class
$1,000
$1,079.60
$3.93
0.75%
C Class
$1,000
$1,075.50
$7.85
1.50%
Hypothetical
Investor Class
$1,000
$1,022.69
$2.55
0.50%
I Class
$1,000
$1,023.69
$1.53
0.30%
Y Class
$1,000
$1,023.84
$1.38
0.27%
A Class
$1,000
$1,021.43
$3.82
0.75%
C Class
$1,000
$1,017.64
$7.63
1.50%

(1)
Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 184, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses.

9


Schedule of Investments
 
AUGUST 31, 2019
 
Principal Amount
Value
MUNICIPAL SECURITIES — 99.0%
 
 
California — 97.8%
 
 
91 Express Lanes Toll Road Rev., 5.00%, 8/15/30
$
2,400,000

$
2,744,400

ABAG Finance Authority for Nonprofit Corps. Rev., (Jackson Laboratory), 5.00%, 7/1/37
2,000,000

2,196,040

ABC Unified School District GO, Capital Appreciation, 0.00%, 8/1/21 (NATL)(1)
1,000,000

976,300

Alameda Community Facilities District Special Tax, 5.00%, 9/1/42
1,250,000

1,417,237

Alameda Corridor Transportation Authority Rev., 5.00%, 10/1/26
2,000,000

2,304,620

Alameda Corridor Transportation Authority Rev., 5.00%, 10/1/27 (AGM)
2,000,000

2,308,080

Alameda Corridor Transportation Authority Rev., 5.00%, 10/1/35
2,270,000

2,704,796

Antelope Valley Healthcare District Rev., 5.00%, 3/1/46
5,000,000

5,376,400

Bay Area Toll Authority Rev., VRDN, 2.45%, (MUNIPSA plus 1.10%), 4/1/24
2,500,000

2,574,375

Beaumont Special Tax, (Beaumont Community Facilities District No. 2016-1), 5.00%, 9/1/44
300,000

348,150

Beaumont Special Tax, (Beaumont Community Facilities District No. 2016-1), 5.00%, 9/1/49
400,000

462,040

Beaumont Special Tax, (Beaumont Community Facilities District No. 93-1), 5.00%, 9/1/43
1,605,000

1,864,336

Beaumont Special Tax, (Beaumont Community Facilities District No. 93-1), 5.00%, 9/1/48
2,855,000

3,301,294

Beaumont Special Tax, (Beaumont Community Facilities District No. 93-1), 5.00%, 9/1/48
2,535,000

2,931,271

Berryessa Union School District GO, Capital Appreciation, 0.00%, 8/1/21 (AGM)(1)
1,190,000

1,161,797

Berryessa Union School District GO, Capital Appreciation, 0.00%, 8/1/22 (AGM)(1)
1,220,000

1,174,287

Berryessa Union School District GO, Capital Appreciation, 0.00%, 8/1/23 (AGM)(1)
1,000,000

947,980

California Community College Financing Authority Rev., (NCCD-Orange Coast Properties LLC), 5.25%, 5/1/53
6,250,000

7,444,312

California Community Housing Agency Rev., 5.00%, 4/1/49(2)
8,035,000

9,035,920

California Community Housing Agency Rev., 5.00%, 8/1/49(2)
5,000,000

5,677,050

California County Tobacco Securitization Agency Rev., (Alameda County Tobacco Securitization Corp.), 0.00%, 6/1/50(1)
22,520,000

3,446,686

California County Tobacco Securitization Agency Rev., (Gold Country Settlement Funding Corp.), 5.25%, 6/1/46
1,000,000

1,000,180

California County Tobacco Securitization Agency Rev., (Los Angeles County Securitization Corp.), 5.45%, 6/1/28
2,000,000

2,027,940

California County Tobacco Securitization Agency Rev., (Los Angeles County Securitization Corp.), 5.65%, 6/1/41
1,500,000

1,509,645

California County Tobacco Securitization Agency Rev., (Los Angeles County Securitization Corp.), 0.00%, 6/1/46(1)
15,975,000

3,183,019

California Educational Facilities Authority Rev., (Chapman University), 5.00%, 4/1/25
715,000

869,040

California Educational Facilities Authority Rev., (Chapman University), 5.00%, 4/1/31 (GA: Brandman University)
1,820,000

1,928,545


10


 
Principal Amount
Value
California Educational Facilities Authority Rev., (Loma Linda University), 5.00%, 4/1/30
$
575,000

$
719,595

California Educational Facilities Authority Rev., (Loma Linda University), 5.00%, 4/1/31
650,000

807,534

California Educational Facilities Authority Rev., (Loma Linda University), 5.00%, 4/1/32
500,000

617,545

California Educational Facilities Authority Rev., (Loma Linda University), 5.00%, 4/1/33
575,000

707,745

California Educational Facilities Authority Rev., (Loma Linda University), 5.00%, 4/1/34
1,250,000

1,532,725

California Educational Facilities Authority Rev., (Loma Linda University), 5.00%, 4/1/35
1,250,000

1,528,575

California Educational Facilities Authority Rev., (The Leland Stanford Junior University), 5.00%, 5/1/49
4,000,000

6,369,480

California Health Facilities Financing Authority Rev., (Adventist Health System / West Obligated Group), 4.00%, 3/1/24
2,250,000

2,544,390

California Housing Finance Rev., 4.25%, 1/15/35
3,325,000

3,982,419

California Infrastructure & Economic Development Bank Rev., (Colburn School), VRDN, 2.35%, (MUNIPSA plus 1.00%), 6/1/20
2,190,000

2,193,832

California Municipal Finance Authority Rev., (Azusa Pacific University), 5.00%, 4/1/41
1,860,000

2,036,626

California Municipal Finance Authority Rev., (Bowles Hall Foundation), 5.00%, 6/1/50
1,750,000

1,974,122

California Municipal Finance Authority Rev., (California Baptist University), 5.00%, 11/1/46(2)
2,000,000

2,293,320

California Municipal Finance Authority Rev., (Caritas Affordable Housing, Inc.), 5.00%, 8/15/20
600,000

620,364

California Municipal Finance Authority Rev., (Caritas Affordable Housing, Inc.), 5.00%, 8/15/22
360,000

396,079

California Municipal Finance Authority Rev., (Chevron Corp.), VRDN, 1.24%, 9/3/19 (GA: Chevron Corp.)
1,000,000

1,000,000

California Municipal Finance Authority Rev., (Chevron USA, Inc.), VRDN, 1.24%, 9/3/19 (GA: Chevron Corp.)
9,100,000

9,100,000

California Municipal Finance Authority Rev., (CHF-Davis I LLC), 5.00%, 5/15/51
12,205,000

14,692,989

California Municipal Finance Authority Rev., (CHF-Riverside I LLC), 5.00%, 5/15/52
5,140,000

6,183,112

California Municipal Finance Authority Rev., (Community Hospitals of Central California Obligated Group), 5.00%, 2/1/27
1,000,000

1,254,700

California Municipal Finance Authority Rev., (Community Hospitals of Central California Obligated Group), 5.00%, 2/1/46
3,615,000

4,175,542

California Municipal Finance Authority Rev., (Congregational Home Obligated Group), 5.00%, 11/15/39
1,200,000

1,441,116

California Municipal Finance Authority Rev., (Congregational Home Obligated Group), 5.00%, 11/15/49
2,750,000

3,255,230

California Municipal Finance Authority Rev., (Creative Center of Los Altos), 4.00%, 11/1/26(2)
625,000

656,875

California Municipal Finance Authority Rev., (Creative Center of Los Altos), 4.00%, 11/1/36(2)
1,400,000

1,461,978

California Municipal Finance Authority Rev., (Creative Center of Los Altos), 4.50%, 11/1/46(2)
3,100,000

3,278,560

California Municipal Finance Authority Rev., (Eisenhower Medical Center), 5.00%, 7/1/35
3,500,000

4,216,135

California Municipal Finance Authority Rev., (Eisenhower Medical Center), 5.00%, 7/1/35
1,500,000

1,806,915

California Municipal Finance Authority Rev., (Eisenhower Medical Center), 5.00%, 7/1/36
1,580,000

1,896,079


11


 
Principal Amount
Value
California Municipal Finance Authority Rev., (Eisenhower Medical Center), 5.00%, 7/1/37
$
1,500,000

$
1,792,545

California Municipal Finance Authority Rev., (Eisenhower Medical Center), 5.00%, 7/1/42
1,750,000

2,068,255

California Municipal Finance Authority Rev., (Eisenhower Medical Center), 5.00%, 7/1/47
3,000,000

3,518,640

California Municipal Finance Authority Rev., (Emerson College), 5.00%, 1/1/42
5,250,000

6,326,407

California Municipal Finance Authority Rev., (Northbay Healthcare Group Obligated Group), 5.00%, 11/1/24
1,000,000

1,164,750

California Municipal Finance Authority Rev., (Northbay Healthcare Group Obligated Group), 5.00%, 11/1/25
1,000,000

1,191,530

California Municipal Finance Authority Rev., (Northbay Healthcare Group Obligated Group), 5.00%, 11/1/26
500,000

607,485

California Municipal Finance Authority Rev., (Northbay Healthcare Group Obligated Group), 5.00%, 11/1/35
350,000

394,293

California Municipal Finance Authority Rev., (Northbay Healthcare Group Obligated Group), 5.00%, 11/1/40
500,000

558,720

California Municipal Finance Authority Rev., (Northbay Healthcare Group Obligated Group), 5.00%, 11/1/44
300,000

333,924

California Municipal Finance Authority Rev., (Northbay Healthcare Group Obligated Group), 5.25%, 11/1/47
1,600,000

1,864,576

California Municipal Finance Authority Rev., (Northern California Retired Officers Community), 2.25%, 7/1/25 (California Mortgage Insurance)
2,200,000

2,222,242

California Municipal Finance Authority Rev., (Palmdale Aerospace Academy, Inc.), 5.00%, 7/1/38(2)
2,200,000

2,519,044

California Municipal Finance Authority Rev., (Palmdale Aerospace Academy, Inc.), 5.00%, 7/1/49(2)
5,100,000

5,754,738

California Municipal Finance Authority Rev., (River Charter Schools), 5.50%, 6/1/38(2)
800,000

908,144

California Municipal Finance Authority Rev., (River Charter Schools), 5.50%, 6/1/48(2)
1,810,000

2,032,539

California Municipal Finance Authority Rev., (River Charter Schools), 5.50%, 6/1/53(2)
1,805,000

2,015,427

California Municipal Finance Authority Rev., (Santa Rosa Academy LLC), 5.125%, 7/1/35(2)
905,000

1,002,957

California Municipal Finance Authority Rev., (Santa Rosa Academy LLC), 5.375%, 7/1/45(2)
1,400,000

1,553,524

California Municipal Finance Authority Rev., (Touro College and University System Obligated Group), 5.25%, 1/1/34
950,000

1,080,426

California Municipal Finance Authority Rev., (Touro College and University System Obligated Group), 5.25%, 1/1/40
1,750,000

1,971,690

California Municipal Finance Authority Rev., (William Jessup University), 5.00%, 8/1/39
2,000,000

2,318,300

California Municipal Finance Authority Rev., (William Jessup University), 5.00%, 8/1/48
2,700,000

3,082,698

California Pollution Control Financing Authority Rev., (San Diego County Water Authority), 5.00%, 11/21/45(2)
1,500,000

1,815,705

California Public Finance Authority Rev., (Henry Mayo Newhall Memorial Hospital), 5.00%, 10/15/47
3,500,000

4,007,220

California Public Finance Authority Rev., (Trinity Classical Academy), 5.00%, 7/1/36(2)
400,000

435,340

California Public Finance Authority Rev., (Trinity Classical Academy), 5.00%, 7/1/44(2)
375,000

400,170

California Public Finance Authority Rev., (Trinity Classical Academy), 5.00%, 7/1/54(2)
1,000,000

1,058,840


12


 
Principal Amount
Value
California School Finance Authority Rev., (Alliance for College Ready Public Schools Obligated Group), 5.00%, 7/1/31
$
4,000,000

$
4,661,360

California School Finance Authority Rev., (Alliance for College Ready Public Schools Obligated Group), 5.00%, 7/1/45(2)
5,000,000

5,647,000

California School Finance Authority Rev., (Aspire Public Schools Obligated Group), 5.00%, 8/1/27(2)
985,000

1,153,514

California School Finance Authority Rev., (Aspire Public Schools Obligated Group), 5.00%, 8/1/28(2)
1,285,000

1,502,962

California School Finance Authority Rev., (Aspire Public Schools Obligated Group), 5.00%, 8/1/29(2)
795,000

926,843

California School Finance Authority Rev., (Aspire Public Schools Obligated Group), 5.00%, 8/1/30(2)
400,000

464,524

California School Finance Authority Rev., (Aspire Public Schools Obligated Group), 5.00%, 8/1/31(2)
500,000

577,330

California School Finance Authority Rev., (Aspire Public Schools Obligated Group), 5.00%, 8/1/40(2)
1,000,000

1,131,910

California School Finance Authority Rev., (Aspire Public Schools Obligated Group), 5.00%, 8/1/41(2)
1,000,000

1,130,530

California School Finance Authority Rev., (Bright Star Schools Obligated Group), 5.00%, 6/1/37(2)
1,800,000

1,984,194

California School Finance Authority Rev., (Bright Star Schools Obligated Group), 5.00%, 6/1/47(2)
1,565,000

1,702,986

California School Finance Authority Rev., (Bright Star Schools Obligated Group), 5.00%, 6/1/54(2)
1,660,000

1,791,273

California School Finance Authority Rev., (Downtown College Prep Obligated Group), 4.00%, 6/1/26(2)
2,525,000

2,656,754

California School Finance Authority Rev., (Downtown College Prep Obligated Group), 4.50%, 6/1/31(2)
1,500,000

1,627,770

California School Finance Authority Rev., (Downtown College Prep Obligated Group), 4.75%, 6/1/36(2)
1,500,000

1,626,660

California School Finance Authority Rev., (Downtown College Prep Obligated Group), 5.00%, 6/1/46(2)
4,630,000

5,017,577

California School Finance Authority Rev., (Downtown College Prep Obligated Group), 5.00%, 6/1/51(2)
2,000,000

2,161,200

California School Finance Authority Rev., (Ednovate Obligated Group), 5.00%, 6/1/30(2)
325,000

361,520

California School Finance Authority Rev., (Ednovate Obligated Group), 5.00%, 6/1/37(2)
430,000

470,945

California School Finance Authority Rev., (Ednovate Obligated Group), 5.00%, 6/1/48(2)
1,100,000

1,193,896

California School Finance Authority Rev., (Ednovate Obligated Group), 5.00%, 6/1/56(2)
1,000,000

1,078,380

California School Finance Authority Rev., (Encore Education Obligated Group), 5.00%, 6/1/42(2)
2,010,000

1,865,541

California School Finance Authority Rev., (Encore Education Obligated Group), 5.00%, 6/1/52(2)
2,190,000

1,975,511

California School Finance Authority Rev., (Green Dot Public Schools Obligated Group), 5.00%, 8/1/38(2)
1,000,000

1,204,420

California School Finance Authority Rev., (Green Dot Public Schools Obligated Group), 5.00%, 8/1/45(2)
3,500,000

3,960,705

California School Finance Authority Rev., (Green Dot Public Schools Obligated Group), 5.00%, 8/1/48(2)
3,500,000

4,161,640

California School Finance Authority Rev., (Inspire Charter Schools Obligated Group), 3.00%, 7/15/20(2)
4,250,000

4,257,820

California School Finance Authority Rev., (Kepler Education, Inc.), 5.75%, 5/1/37(2)
1,050,000

1,072,712

California School Finance Authority Rev., (Kepler Education, Inc.), 5.875%, 5/1/47(2)
1,425,000

1,455,238


13


 
Principal Amount
Value
California School Finance Authority Rev., (Kipp Schools), 4.125%, 7/1/24
$
345,000

$
368,198

California School Finance Authority Rev., (Kipp Schools), 5.00%, 7/1/34
500,000

565,595

California School Finance Authority Rev., (Kipp Schools), 5.00%, 7/1/37(2)
1,180,000

1,412,932

California School Finance Authority Rev., (Kipp Schools), 5.125%, 7/1/44
700,000

783,867

California School Finance Authority Rev., (Kipp Schools), 5.00%, 7/1/45(2)
1,650,000

1,873,063

California School Finance Authority Rev., (Kipp Socal Public Schools Obligated Group), 5.00%, 7/1/39(2)
1,000,000

1,234,880

California School Finance Authority Rev., (Kipp Socal Public Schools Obligated Group), 5.00%, 7/1/49(2)
1,000,000

1,213,230

California School Finance Authority Rev., (Kipp Socal Public Schools Obligated Group), 5.00%, 7/1/54(2)
2,150,000

2,587,439

California School Finance Authority Rev., (Larchmont Schools), 5.00%, 6/1/33(2)
500,000

556,545

California School Finance Authority Rev., (Larchmont Schools), 5.00%, 6/1/43(2)
550,000

602,762

California School Finance Authority Rev., (Larchmont Schools), 5.00%, 6/1/55(2)
1,000,000

1,085,360

California School Finance Authority Rev., (Rocketship Education Obligated Group), 5.00%, 6/1/21(2)
770,000

791,976

California School Finance Authority Rev., (Rocketship Education Obligated Group), 5.00%, 6/1/26(2)
500,000

554,030

California School Finance Authority Rev., (Rocketship Education Obligated Group), 5.00%, 6/1/31(2)
870,000

946,264

California School Finance Authority Rev., (Rocketship Education Obligated Group), 5.00%, 6/1/36(2)
1,000,000

1,077,900

California School Finance Authority Rev., (Rocketship Education Obligated Group), 5.00%, 6/1/37(2)
360,000

395,302

California School Finance Authority Rev., (Rocketship Education Obligated Group), 5.00%, 6/1/46(2)
2,100,000

2,244,417

California School Finance Authority Rev., (Rocketship Education Obligated Group), 5.00%, 6/1/53(2)
2,265,000

2,448,850

California School Finance Authority Rev., (Summit Public Schools Obligated Group), 5.00%, 6/1/37(2)
1,000,000

1,184,830

California School Finance Authority Rev., (Summit Public Schools Obligated Group), 5.00%, 6/1/47(2)
1,870,000

2,186,049

California School Finance Authority Rev., (Summit Public Schools Obligated Group), 4.30%, 6/1/53(2)
2,935,000

2,998,924

California State Public Works Board Rev., 5.00%, 4/1/25
1,500,000

1,650,720

California State Public Works Board Rev., 5.00%, 12/1/31
975,000

1,058,655

California State Public Works Board Rev., 5.00%, 4/1/37
5,465,000

5,965,867

California State Public Works Board Rev., 5.00%, 11/1/38
2,350,000

2,693,452

California State Public Works Board Rev., (State of California Department of Corrections & Rehabilitation), 5.75%, 10/1/31
1,000,000

1,094,870

California State Public Works Board Rev., (State of California Department of Corrections & Rehabilitation), 5.00%, 9/1/39
7,000,000

8,163,540

California Statewide Communities Development Authority Rev., (899 Charleston LLC), 5.25%, 11/1/44(2)
1,500,000

1,666,185

California Statewide Communities Development Authority Rev., (Adventist Health System / West Obligated Group), 5.00%, 3/1/35
1,785,000

2,134,467

California Statewide Communities Development Authority Rev., (American Baptist Homes of the West Obligated Group), 5.00%, 10/1/43 (GA: American Baptist Homes Foundation)
1,200,000

1,289,244


14


 
Principal Amount
Value
California Statewide Communities Development Authority Rev., (American Baptist Homes of the West Obligated Group), 5.00%, 10/1/45
$
2,400,000

$
2,728,008

California Statewide Communities Development Authority Rev., (Be.group), 7.25%, 11/15/41(2)
2,500,000

2,530,600

California Statewide Communities Development Authority Rev., (California Baptist University), 3.00%, 11/1/22(2)
1,670,000

1,699,392

California Statewide Communities Development Authority Rev., (California Baptist University), 3.50%, 11/1/27(2)
2,630,000

2,840,742

California Statewide Communities Development Authority Rev., (California Baptist University), 5.00%, 11/1/32(2)
3,090,000

3,709,823

California Statewide Communities Development Authority Rev., (California Baptist University), 5.00%, 11/1/41(2)
4,450,000

5,212,552

California Statewide Communities Development Authority Rev., (Chevron USA, Inc.), VRDN, 1.24%, 9/3/19 (GA: Chevron Corp.)
600,000

600,000

California Statewide Communities Development Authority Rev., (Collis P and Howard Huntington Memorial Hospital Obligated Group), 5.00%, 7/1/34
1,500,000

1,732,530

California Statewide Communities Development Authority Rev., (Collis P and Howard Huntington Memorial Hospital Obligated Group), 5.00%, 7/1/44
2,760,000

3,146,510

California Statewide Communities Development Authority Rev., (Cottage Health System Obligated Group), 5.25%, 11/1/30
1,250,000

1,307,713

California Statewide Communities Development Authority Rev., (Episcopal Communities & Services for Seniors), 5.00%, 5/15/42
1,500,000

1,622,880

California Statewide Communities Development Authority Rev., (Henry Mayo Newhall Memorial Hospital), 5.25%, 10/1/43 (AGM)
1,000,000

1,140,900

California Statewide Communities Development Authority Rev., (Independence Support LLC), 7.00%, 6/1/45(3)(4)
7,000,000

4,270,000

California Statewide Communities Development Authority Rev., (Lancer Educational Housing LLC), 5.00%, 6/1/46(2)
3,500,000

3,926,510

California Statewide Communities Development Authority Rev., (Lancer Educational Housing LLC), 5.00%, 6/1/51(2)
1,450,000

1,688,003

California Statewide Communities Development Authority Rev., (Loma Linda University Medical Center Obligated Group), 5.00%, 12/1/26(2)
2,000,000

2,367,980

California Statewide Communities Development Authority Rev., (Loma Linda University Medical Center Obligated Group), 5.00%, 12/1/29(2)
3,155,000

3,698,417

California Statewide Communities Development Authority Rev., (Loma Linda University Medical Center Obligated Group), 5.00%, 12/1/36(2)
1,000,000

1,150,180

California Statewide Communities Development Authority Rev., (Loma Linda University Medical Center Obligated Group), 5.00%, 12/1/41(2)
1,700,000

1,931,659

California Statewide Communities Development Authority Rev., (Loma Linda University Medical Center Obligated Group), 5.25%, 12/1/44
5,000,000

5,623,900

California Statewide Communities Development Authority Rev., (Loma Linda University Medical Center Obligated Group), 5.00%, 12/1/46(2)
9,900,000

11,183,832

California Statewide Communities Development Authority Rev., (Loma Linda University Medical Center Obligated Group), 5.50%, 12/1/54
4,605,000

5,202,315

California Statewide Communities Development Authority Rev., (Loma Linda University Medical Center Obligated Group), 5.50%, 12/1/58(2)
14,750,000

17,591,587

California Statewide Communities Development Authority Rev., (Methodist Hospital of Southern California Obligated Group), 5.00%, 1/1/48
10,000,000

11,878,800


15


 
Principal Amount
Value
California Statewide Communities Development Authority Rev., (NCCD-Hooper Street LLC), 5.25%, 7/1/49(2)
$
3,375,000

$
3,917,126

California Statewide Communities Development Authority Rev., (Redlands Community Hospital), 4.00%, 10/1/41
6,500,000

7,126,080

California Statewide Communities Development Authority Rev., (Viamonte Senior Living 1, Inc.), 3.00%, 7/1/25 (California Mortgage Insurance)
2,500,000

2,562,750

California Statewide Communities Development Authority Rev., (Viamonte Senior Living 1, Inc.), 3.00%, 7/1/26 (California Mortgage Insurance)
2,750,000

2,815,835

California Statewide Communities Development Authority Rev., (Viamonte Senior Living 1, Inc.), 3.00%, 7/1/27 (California Mortgage Insurance)
1,500,000

1,533,225

California Statewide Communities Development Authority Special Assessment, 2.70%, 9/2/22
345,000

353,201

California Statewide Communities Development Authority Special Assessment, 3.00%, 9/2/23
355,000

369,257

California Statewide Communities Development Authority Special Assessment, 3.00%, 9/2/24
365,000

382,144

California Statewide Communities Development Authority Special Assessment, 5.00%, 9/2/34
1,125,000

1,402,279

California Statewide Communities Development Authority Special Assessment, 5.00%, 9/2/35
1,920,000

2,211,168

California Statewide Communities Development Authority Special Assessment, 5.00%, 9/2/39
600,000

735,498

California Statewide Communities Development Authority Special Assessment, 4.00%, 9/2/44
900,000

992,763

California Statewide Communities Development Authority Special Assessment, 5.00%, 9/2/45
3,810,000

4,322,788

California Statewide Communities Development Authority Special Assessment, 5.00%, 9/2/49
700,000

844,375

California Statewide Communities Development Authority Special Tax, 5.00%, 9/1/36
1,000,000

1,149,110

California Statewide Communities Development Authority Special Tax, 5.00%, 9/1/37
3,865,000

4,429,174

California Statewide Communities Development Authority Special Tax, 5.00%, 9/1/39
1,545,000

1,800,172

California Statewide Communities Development Authority Special Tax, 5.00%, 9/1/45
1,500,000

1,701,975

California Statewide Communities Development Authority Special Tax, 5.00%, 9/1/47
1,650,000

1,935,021

California Statewide Communities Development Authority Special Tax, 5.00%, 9/1/48
1,750,000

2,018,082

California Statewide Communities Development Authority Special Tax, 5.00%, 9/1/48
7,330,000

8,724,313

Cathedral City Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 8/1/29 (AGM)
1,250,000

1,464,087

Cathedral City Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 8/1/30 (AGM)
1,315,000

1,537,169

Cathedral City Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 8/1/31 (AGM)
1,380,000

1,608,832

Central Basin Municipal Water District Rev., 5.00%, 8/1/44
5,000,000

5,885,150

Chino Community Facilities District Special Tax, 5.00%, 9/1/43
3,160,000

3,781,256

Chino Community Facilities District Special Tax, 5.00%, 9/1/48
2,500,000

2,972,900

Chula Vista Community Facilities District Special Tax, (Chula Vista Community Facilities District No. 06-1), 5.00%, 9/1/43
595,000

691,479

Chula Vista Community Facilities District Special Tax, (Chula Vista Community Facilities District No. 06-1), 5.00%, 9/1/48
1,000,000

1,158,290


16


 
Principal Amount
Value
Compton Unified School District GO, Capital Appreciation, 0.00%, 6/1/43 (BAM)(1)
$
3,300,000

$
1,580,931

Corona-Norco Unified School District Special Tax, 5.00%, 9/1/43
2,430,000

2,820,355

Corona-Norco Unified School District Special Tax, 4.00%, 9/1/45
2,000,000

2,152,820

Corona-Norco Unified School District Special Tax, 5.00%, 9/1/48
1,500,000

1,734,480

Del Mar Race Track Authority Rev., 5.00%, 10/1/29
1,010,000

1,157,026

Del Mar Race Track Authority Rev., 5.00%, 10/1/35
2,000,000

2,254,220

Dixon Special Tax, 5.00%, 9/1/45
4,780,000

5,427,021

Duarte Unified School District GO, Capital Appreciation, 0.00%, 11/1/23 (AGM)(1)
1,150,000

1,084,186

Dublin Community Facilities District Improvement Area No. 1 Special Tax, 5.00%, 9/1/29
665,000

803,147

Dublin Community Facilities District Improvement Area No. 1 Special Tax, 5.00%, 9/1/37
1,150,000

1,360,324

Dublin Community Facilities District Improvement Area No. 1 Special Tax, 5.00%, 9/1/39
3,200,000

3,761,440

Dublin Community Facilities District Improvement Area No. 1 Special Tax, 5.00%, 9/1/44
3,000,000

3,496,830

Dublin Community Facilities District Improvement Area No. 1 Special Tax, 5.00%, 9/1/47
2,840,000

3,315,672

Dublin Community Facilities District Improvement Area No. 1 Special Tax, 5.00%, 9/1/49
4,300,000

4,997,116

East Garrison Public Finance Authority Special Tax, 5.00%, 9/1/46
1,250,000

1,439,625

Eastern Municipal Water District Special Tax, 5.00%, 9/1/36
3,575,000

4,105,923

El Dorado County Special Tax, 5.00%, 9/1/27
1,055,000

1,299,401

El Dorado County Special Tax, 5.00%, 9/1/29
1,225,000

1,494,549

El Dorado County Special Tax, 5.00%, 9/1/30
1,325,000

1,607,225

El Dorado County Special Tax, 5.00%, 9/1/31
1,280,000

1,544,218

El Dorado County Special Tax, 5.00%, 9/1/32
1,355,000

1,625,201

El Dorado County Special Tax, 4.00%, 9/1/43
1,250,000

1,350,225

El Dorado County Special Tax, 4.00%, 9/1/46
2,350,000

2,510,552

El Dorado County Special Tax, 5.00%, 9/1/48
2,850,000

3,239,082

El Dorado County Special Tax, (El County Dorado Community Facilities District No. 2018-1 Bass Lake Hills), 5.00%, 9/1/34
450,000

527,189

El Dorado County Special Tax, (El County Dorado Community Facilities District No. 2018-1 Bass Lake Hills), 5.00%, 9/1/39
725,000

840,478

El Dorado County Special Tax, (El County Dorado Community Facilities District No. 2018-1 Bass Lake Hills), 5.00%, 9/1/44
1,300,000

1,504,945

El Dorado County Special Tax, (El County Dorado Community Facilities District No. 2018-1 Bass Lake Hills), 5.00%, 9/1/49
1,500,000

1,729,815

Elk Grove Finance Authority Special Tax, 5.00%, 9/1/43
1,040,000

1,203,769

Elk Grove Finance Authority Special Tax, 5.00%, 9/1/48
1,250,000

1,440,662

Emeryville Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/31 (AGM)
590,000

693,805

Emeryville Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/34 (AGM)
1,000,000

1,171,830

Escondido Joint Powers Financing Authority Rev., 5.00%, 9/1/31
1,355,000

1,478,413

Fairfield Community Facilities District Special Tax, (Fairfield Community Facilities District No. 2016-1), 5.00%, 9/1/39
500,000

613,885

Fairfield Community Facilities District Special Tax, (Fairfield Community Facilities District No. 2016-1), 5.00%, 9/1/44
1,000,000

1,208,030

Folsom Ranch Financing Authority Special Tax, 5.00%, 9/1/47
4,325,000

5,062,845


17


 
Principal Amount
Value
Folsom Ranch Financing Authority Special Tax, (Folsom CA-Community Facilities District No. 20), 5.00%, 9/1/33
$
530,000

$
625,835

Folsom Ranch Financing Authority Special Tax, (Folsom CA-Community Facilities District No. 20), 5.00%, 9/1/38
845,000

986,259

Folsom Ranch Financing Authority Special Tax, (Folsom CA-Community Facilities District No. 20), 5.00%, 9/1/48
1,675,000

1,935,680

Folsom Ranch Financing Authority Special Tax, (Folsom Community Facilities District No. 19), 5.00%, 9/1/34
1,690,000

2,028,287

Folsom Ranch Financing Authority Special Tax, (Folsom Community Facilities District No. 19), 5.00%, 9/1/39
880,000

1,043,222

Folsom Ranch Financing Authority Special Tax, (Folsom Community Facilities District No. 19), 5.00%, 9/1/44
1,145,000

1,347,894

Folsom Ranch Financing Authority Special Tax, (Folsom Community Facilities District No. 19), 5.00%, 9/1/49
1,025,000

1,200,326

Fontana Special Tax, (City of Fontana CA Community Facilities District No. 80 Bella Strada), 5.00%, 9/1/46
1,000,000

1,172,030

Fontana Special Tax, (Fontana Community Facilities District No. 31), 5.00%, 9/1/35
1,365,000

1,604,203

Foothill-Eastern Transportation Corridor Agency Rev., 6.50%, 1/15/43
4,000,000

4,789,920

Foothill-Eastern Transportation Corridor Agency Rev., 6.00%, 1/15/49
27,500,000

32,648,825

Foothill-Eastern Transportation Corridor Agency Rev., Capital Appreciation, 0.00%, 1/15/42(1)
6,000,000

2,928,960

Foothill-Eastern Transportation Corridor Agency Rev., Capital Appreciation, VRN, 0.00%, 1/15/42
2,200,000

2,345,464

Foothill-Eastern Transportation Corridor Agency Rev., VRDN, 5.50%, 1/15/23
3,750,000

4,208,100

Fremont Community Facilities District No. 1 Special Tax, 5.00%, 9/1/40
3,000,000

3,424,230

Fremont Community Facilities District No. 1 Special Tax, 5.00%, 9/1/45
2,000,000

2,270,340

Fremont Community Facilities District No. 2 Special Tax, 5.00%, 9/1/44
1,000,000

1,161,110

Fremont Community Facilities District No. 2 Special Tax, 5.00%, 9/1/49
1,550,000

1,793,117

Golden State Tobacco Securitization Corp. Rev., 5.00%, 6/1/24
1,500,000

1,728,375

Golden State Tobacco Securitization Corp. Rev., 5.00%, 6/1/25
1,000,000

1,177,930

Golden State Tobacco Securitization Corp. Rev., 5.00%, 6/1/26
1,000,000

1,200,090

Golden State Tobacco Securitization Corp. Rev., 5.00%, 6/1/29
1,500,000

1,718,700

Golden State Tobacco Securitization Corp. Rev., 5.30%, 6/1/37
7,000,000

7,280,910

Golden State Tobacco Securitization Corp. Rev., 5.00%, 6/1/47
10,000,000

10,256,600

Golden State Tobacco Securitization Corp. Rev., 5.25%, 6/1/47
16,500,000

17,033,775

Golden State Tobacco Securitization Corp. Rev., Capital Appreciation, 0.00%, 6/1/47(1)
45,000,000

7,729,200

Hemet Unified School District Financing Authority Special Tax, 5.00%, 9/1/34
350,000

399,354

Hemet Unified School District Financing Authority Special Tax, 5.00%, 9/1/39
2,100,000

2,373,588

Hesperia Special Tax, 5.00%, 9/1/29
1,060,000

1,203,111

Hesperia Special Tax, 5.00%, 9/1/35
2,690,000

3,023,910

Huntington Beach Community Facilities District Special Tax, 5.375%, 9/1/33
1,700,000

1,904,493

Independent Cities Finance Authority Rev., 5.00%, 10/15/47
4,000,000

4,266,720


18


 
Principal Amount
Value
Independent Cities Finance Authority Rev., (Augusta Communities LLC), 5.00%, 5/15/39
$
2,500,000

$
2,678,250

Independent Cities Finance Authority Rev., (Millennium Housing Corp.), 5.00%, 9/15/36
1,000,000

1,103,770

Independent Cities Finance Authority Rev., (Millennium Housing Corp.), 5.00%, 9/15/36
1,500,000

1,655,655

Independent Cities Finance Authority Rev., (Millennium Housing LLC), 6.75%, 8/15/46
2,500,000

2,727,900

Inland Valley Development Agency Tax Allocation, 5.25%, 9/1/37
1,110,000

1,286,845

Irvine Special Assessment, 5.00%, 9/2/24
700,000

781,431

Irvine Special Assessment, 5.00%, 9/2/26
600,000

668,418

Irvine Special Assessment, 5.00%, 9/2/29
700,000

798,014

Irvine Special Assessment, 5.00%, 9/2/30
350,000

397,607

Irvine Special Assessment, 5.00%, 9/2/42
1,500,000

1,707,375

Irvine Special Tax, 5.00%, 9/1/39
1,000,000

1,120,830

Irvine Special Tax, 5.00%, 9/1/44
500,000

557,555

Irvine Special Tax, 5.00%, 9/1/49
4,500,000

4,999,680

Irvine Special Tax, (Irvine Community Facilities District No. 2013-3), 5.00%, 9/1/43
2,500,000

2,907,400

Irvine Special Tax, (Irvine Community Facilities District No. 2013-3), 5.00%, 9/1/48
4,250,000

4,925,452

Irvine Unified School District Special Tax, 5.00%, 9/1/29
550,000

674,493

Irvine Unified School District Special Tax, 5.00%, 9/1/29
700,000

858,445

Irvine Unified School District Special Tax, 5.00%, 9/1/31
420,000

509,523

Irvine Unified School District Special Tax, 5.00%, 9/1/34
500,000

600,710

Irvine Unified School District Special Tax, 6.70%, 9/1/35
515,000

536,960

Irvine Unified School District Special Tax, 4.00%, 9/1/49 (BAM)(5)
2,150,000

2,449,409

Irvine Unified School District Special Tax, 4.00%, 9/1/54 (BAM)(5)
2,600,000

2,937,506

Irvine Unified School District Special Tax, 5.00%, 3/1/57
3,500,000

4,053,385

Jurupa Community Services District Special Tax, 5.00%, 9/1/37
250,000

268,830

Jurupa Community Services District Special Tax, 5.00%, 9/1/40
1,605,000

1,862,314

Jurupa Community Services District Special Tax, 5.00%, 9/1/42
1,000,000

1,070,970

Jurupa Public Financing Authority Special Tax, 5.00%, 9/1/42
1,000,000

1,154,850

Jurupa Unified School District Special Tax, 5.00%, 9/1/33
1,220,000

1,442,699

Jurupa Unified School District Special Tax, 5.00%, 9/1/38
1,000,000

1,170,110

Jurupa Unified School District Special Tax, 5.00%, 9/1/43
1,255,000

1,458,724

Jurupa Unified School District Special Tax, 4.00%, 9/1/47
1,000,000

1,075,780

La Verne COP, (Brethren Hillcrest Homes), 5.00%, 5/15/36
1,100,000

1,174,987

Lake Elsinore Special Tax, (Lake Elsinore Community Facilities District No. 2016-2), 5.00%, 9/1/43
2,470,000

2,861,544

Lake Elsinore Special Tax, (Lake Elsinore Community Facilities District No. 2016-2), 5.00%, 9/1/48
3,640,000

4,199,868

Lake Elsinore Facilities Financing Authority Special Tax, 4.00%, 9/1/44
535,000

576,329

Lake Elsinore Public Financing Authority Special Tax, 5.00%, 9/1/34
535,000

601,677

Lake Elsinore Public Financing Authority Special Tax, 5.00%, 9/1/40
1,925,000

2,194,692

Lake Elsinore Unified School District Community Facilities District Special Tax, 4.00%, 9/1/42
600,000

644,562

Lake Elsinore Unified School District Community Facilities District Special Tax, 4.00%, 9/1/47
900,000

966,843


19


 
Principal Amount
Value
Lammersville Joint Unified School District Special Tax, (Lammersville Joint Unified School District Community Facilities Dist No. 2007-1), 6.00%, 9/1/43
$
1,250,000

$
1,436,750

Lammersville Joint Unified School District Special Tax, (Lammersville Joint Unified School District Community Facilities Dist No. 2014-1), 5.00%, 9/1/43
775,000

898,915

Lammersville Joint Unified School District Special Tax, (Lammersville Joint Unified School District Community Facilities Dist No. 2014-1), 5.00%, 9/1/47
3,750,000

4,389,750

Lammersville Joint Unified School District Special Tax, (Lammersville Joint Unified School District Community Facilities Dist No. 2014-1), 5.00%, 9/1/48
2,500,000

2,889,075

Lammersville Joint Unified School District Special Tax, (Lammersville Joint Unified School District Community Facilities District No. 200), 5.00%, 9/1/27
450,000

555,984

Lammersville Joint Unified School District Special Tax, (Lammersville Joint Unified School District Community Facilities District No. 200), 5.00%, 9/1/28
505,000

620,988

Lammersville Joint Unified School District Special Tax, (Lammersville Joint Unified School District Community Facilities District No. 200), 5.00%, 9/1/30
1,300,000

1,582,438

Lammersville Joint Unified School District Special Tax, (Lammersville Joint Unified School District Community Facilities District No. 200), 5.00%, 9/1/32
1,510,000

1,823,219

Long Beach Bond Finance Authority Rev., 5.50%, 11/15/37
1,150,000

1,666,695

Los Angeles Community Facilities District Special Tax, 6.40%, 9/1/22
480,000

485,362

Los Angeles County COP, 5.00%, 3/1/23
1,000,000

1,141,000

Los Angeles County Schools COP, 5.00%, 6/1/20 (AGM)
1,305,000

1,344,150

Los Angeles County Schools COP, 5.00%, 6/1/21 (AGM)
1,895,000

2,028,597

Los Angeles Department of Water Rev., VRDN, 1.20%, 9/3/19 (SBBPA: Toronto-Dominion Bank)
2,200,000

2,200,000

Los Angeles Department of Water & Power System Rev., 5.00%, 7/1/30
3,500,000

4,012,505

Los Angeles Unified School District COP, 5.00%, 10/1/29
350,000

388,147

Los Angeles Unified School District GO, 5.00%, 7/1/30
1,155,000

1,354,007

M-S-R Energy Authority Rev., 7.00%, 11/1/34
1,700,000

2,646,526

M-S-R Energy Authority Rev., 6.50%, 11/1/39
4,000,000

6,397,920

Marina Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/21
125,000

133,196

Marina Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/21
215,000

228,749

Marina Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/22
100,000

109,524

Marina Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/22
225,000

245,810

Marina Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/23
100,000

112,395

Marina Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/23
110,000

123,048

Marina Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/24
250,000

285,078

Marina Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/25
175,000

204,290

Marina Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/25
260,000

300,342

Marina Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/26
135,000

161,109


20


 
Principal Amount
Value
Marina Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/26
$
115,000

$
135,925

Marina Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/27
100,000

117,276

Marina Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/28
100,000

118,769

Marina Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/28
100,000

116,784

Marina Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/33
340,000

397,273

Marina Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/33
250,000

288,150

Marina Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/38
400,000

462,252

Marina Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/38
250,000

285,295

Menifee Union School District Special Tax, 5.00%, 9/1/43
1,000,000

1,160,910

Menifee Union School District Special Tax, 5.00%, 9/1/44
1,000,000

1,180,400

Menifee Union School District Special Tax, 5.00%, 9/1/48
1,300,000

1,529,008

Menifee Union School District Special Tax, 5.00%, 9/1/48
1,500,000

1,735,545

Menifee Union School District Public Financing Authority Special Tax, 5.00%, 9/1/24
1,200,000

1,411,128

Menifee Union School District Public Financing Authority Special Tax, 5.00%, 9/1/26
755,000

909,390

Menifee Union School District Public Financing Authority Special Tax, 4.00%, 9/1/27
420,000

477,431

Menifee Union School District Public Financing Authority Special Tax, 5.00%, 9/1/28
325,000

390,153

Metropolitan Water District of Southern California Rev., VRDN, 1.15%, 9/3/19 (SBBPA: Citibank N.A.)
1,400,000

1,400,000

Moorpark Rev., (Villa del Arroyo Moorpark LLC), 6.50%, 5/15/41
4,000,000

4,307,360

Moreno Valley Unified School District Community Facilities District Special Tax, (Moreno Valley Unified School District Community Facilities District No. 2015-2), 5.00%, 9/1/44
435,000

498,758

Moreno Valley Unified School District Community Facilities District Special Tax, (Moreno Valley Unified School District Community Facilities District No. 2015-2), 5.00%, 9/1/48
485,000

554,922

Murrieta Community Facilities District Special Tax, 5.00%, 9/1/42
655,000

769,324

Murrieta Community Facilities District Special Tax, 5.00%, 9/1/46
825,000

965,102

Murrieta Financing Authority Special Tax, 5.00%, 9/1/31
1,735,000

1,901,317

Murrieta Valley Unified School District Public Financing Authority Special Tax, 5.00%, 9/1/30
1,735,000

2,069,300

Murrieta Valley Unified School District Public Financing Authority Special Tax, 5.00%, 9/1/31
1,915,000

2,275,518

Murrieta Valley Unified School District Public Financing Authority Special Tax, 5.00%, 9/1/32
1,155,000

1,368,178

Napa Special Tax, 4.00%, 9/1/25
155,000

171,960

Napa Special Tax, 4.00%, 9/1/26
365,000

407,939

Napa Special Tax, 4.00%, 9/1/33
315,000

344,295

Napa Special Tax, 4.00%, 9/1/34
400,000

436,604

Norman Y Mineta San Jose International Airport SJC Rev., 5.25%, 3/1/34
2,605,000

2,759,086

Northern California Power Agency Rev., 5.00%, 7/1/31
1,090,000

1,205,442

Northern Inyo County Local Hospital District, 0.00%, 11/1/34(1)
1,325,000

821,527

Northern Inyo County Local Hospital District, 0.00%, 11/1/36(1)
2,885,000

1,649,181


21


 
Principal Amount
Value
Northern Inyo County Local Hospital District Rev., 3.875%, 12/1/27
$
4,065,000

$
4,260,364

Ontario Community Facilities District No. 24 Special Tax, 5.00%, 9/1/26
390,000

472,337

Ontario Community Facilities District No. 24 Special Tax, 5.00%, 9/1/41
2,065,000

2,390,093

Ontario Community Facilities District No. 24 Special Tax, 5.00%, 9/1/46
1,000,000

1,153,230

Ontario Community Facilities District No. 28 Special Tax, 5.00%, 9/1/42
1,000,000

1,135,500

Ontario Community Facilities District No. 28 Special Tax, 5.00%, 9/1/47
500,000

568,005

Ontario Community Facilities District No. 30 Special Tax, 4.00%, 9/1/42
1,395,000

1,502,764

Ontario Community Facilities District No. 30 Special Tax, 4.00%, 9/1/48
2,000,000

2,149,620

Ontario Community Facilities District No. 31 Special Tax, 5.00%, 9/1/42
1,050,000

1,237,299

Ontario Community Facilities District No. 34 Special Tax, 4.00%, 9/1/48
1,000,000

1,073,900

Orange County Community Facilities District Special Tax, 5.25%, 8/15/45
3,905,000

4,492,663

Orange County Community Facilities District Special Tax, 5.00%, 8/15/46
10,000,000

11,536,000

Orange County Community Facilities District Special Tax, 5.00%, 8/15/47
2,550,000

3,037,942

Oroville Rev., (Oroville Hospital), 5.25%, 4/1/39
2,350,000

2,871,418

Oroville Rev., (Oroville Hospital), 5.25%, 4/1/49
7,805,000

9,372,244

Oroville Rev., (Oroville Hospital), 5.25%, 4/1/54
3,000,000

3,593,160

Oxnard Financing Authority Rev., 5.00%, 6/1/34 (AGM)
2,750,000

3,202,127

Palm Desert Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 10/1/22 (BAM)
400,000

449,908

Palm Desert Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 10/1/24 (BAM)
475,000

572,076

Palm Desert Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 10/1/25 (BAM)
850,000

1,056,253

Palm Desert Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 10/1/26 (BAM)
600,000

767,682

Palomar Health Rev., (Palomar Health Obligated Group), 5.00%, 11/1/27
2,005,000

2,415,423

Palomar Health Rev., (Palomar Health Obligated Group), 5.00%, 11/1/30
3,000,000

3,564,000

Palomar Health Rev., (Palomar Health Obligated Group), 5.00%, 11/1/31
2,125,000

2,516,064

Palomar Health Rev., (Palomar Health Obligated Group), 5.00%, 11/1/36
8,465,000

9,888,644

Palomar Health Rev., (Palomar Health Obligated Group), 4.00%, 11/1/39
8,875,000

9,463,767

Palomar Health Rev., (Palomar Health Obligated Group), 5.00%, 11/1/39
8,250,000

9,550,530

Palomar Health Rev., (Palomar Health Obligated Group), 5.00%, 11/1/42
10,000,000

11,785,000

Paramount Unified School District GO, 4.00%, 8/1/48 (BAM)
2,500,000

2,788,325

Perris Joint Powers Authority Special Tax, 5.00%, 9/1/26
1,090,000

1,320,306

Perris Joint Powers Authority Special Tax, 5.00%, 9/1/27
1,000,000

1,234,440

Perris Joint Powers Authority Special Tax, 5.00%, 9/1/30
1,325,000

1,612,790


22


 
Principal Amount
Value
Perris Joint Powers Authority Special Tax, 5.00%, 9/1/34
$
1,555,000

$
1,866,373

Perris Union High School District Special Tax, 5.00%, 9/1/41
4,750,000

5,356,527

Pleasant Valley School District / Ventura County GO, 5.85%, 8/1/31 (NATL)
4,835,000

6,394,481

Poway Unified School District Public Financing Authority Special Tax, 5.00%, 9/1/34
995,000

1,146,966

Poway Unified School District Public Financing Authority Special Tax, 5.00%, 9/1/35
990,000

1,138,856

Poway Unified School District Public Financing Authority Special Tax, 5.00%, 9/1/36
1,245,000

1,428,388

Rancho Cordova Special Tax, 4.00%, 9/1/31
1,350,000

1,476,049

Rancho Cordova Special Tax, 4.00%, 9/1/37
3,000,000

3,238,950

Rancho Cordova Special Tax, 5.00%, 9/1/40
1,195,000

1,361,344

Rancho Cordova Special Tax, 4.00%, 9/1/45
1,025,000

1,103,679

Rancho Cordova Special Tax, 5.00%, 9/1/45
1,250,000

1,418,550

Redding Electric System Rev., 5.00%, 6/1/21
400,000

428,776

Redding Electric System Rev., 5.00%, 6/1/23
740,000

852,828

Redwood City Redevelopment Agency Successor Agency Tax Allocation, Capital Appreciation, 0.00%, 7/15/28 (Ambac)(1)
3,405,000

2,860,711

Rio Elementary School District Community Facilities District Special Tax, 5.00%, 9/1/35
2,550,000

2,875,482

Rio Elementary School District Community Facilities District Special Tax, 5.50%, 9/1/39
1,785,000

2,006,019

Rio Vista Community Facilities District Special Tax, 5.00%, 9/1/38
1,070,000

1,249,974

Rio Vista Community Facilities District Special Tax, 5.00%, 9/1/48
1,190,000

1,376,021

River Islands Public Financing Authority Special Tax, 5.50%, 9/1/45
3,500,000

3,822,140

River Islands Public Financing Authority Special Tax, 5.50%, 9/1/45
5,000,000

5,460,200

Riverside County Community Facilities Districts Special Tax, 5.00%, 9/1/30
1,035,000

1,122,613

Riverside County Community Facilities Districts Special Tax, 5.00%, 9/1/35
2,520,000

2,716,384

Riverside County Community Facilities Districts Special Tax, 5.00%, 9/1/40
2,250,000

2,563,875

Riverside County Community Facilities Districts Special Tax, 5.00%, 9/1/42
1,110,000

1,308,002

Riverside County Community Facilities Districts Special Tax, 5.00%, 9/1/42
3,000,000

3,213,090

Riverside County Community Facilities Districts Special Tax, 5.00%, 9/1/44
2,735,000

3,106,769

Riverside County Community Facilities Districts Special Tax, 5.00%, 9/1/45
540,000

634,133

Riverside County Community Facilities Districts Special Tax, 5.00%, 9/1/48
2,500,000

2,890,800

Riverside County Transportation Commission Rev., 5.75%, 6/1/44
500,000

559,705

Riverside County Transportation Commission Rev., Capital Appreciation, 0.00%, 6/1/41(1)
2,000,000

1,007,660

Riverside County Transportation Commission Rev., Capital Appreciation, 0.00%, 6/1/42(1)
3,320,000

1,612,391

Riverside County Transportation Commission Rev., Capital Appreciation, 0.00%, 6/1/43(1)
5,000,000

2,339,150

Riverside Unified School District Special Tax, (Riverside Unified School District Community Facilities District No. 32), 4.00%, 9/1/43
1,600,000

1,730,528

Riverside Unified School District Special Tax, (Riverside Unified School District Community Facilities District No. 32), 4.00%, 9/1/48
1,850,000

2,003,605


23


 
Principal Amount
Value
Romoland School District Special Tax, 5.00%, 9/1/35
$
4,685,000

$
5,394,871

Romoland School District Special Tax, 5.00%, 9/1/38
2,900,000

3,319,282

Romoland School District Special Tax, 5.00%, 9/1/41
1,250,000

1,475,100

Romoland School District Special Tax, 5.00%, 9/1/43
2,640,000

2,886,233

Romoland School District Special Tax, (Romoland School District Community Facilities District No. 2004-1 Heritage Lake), 5.00%, 9/1/43
3,000,000

3,485,580

Romoland School District Special Tax, (Romoland School District Community Facilities District No. 2004-1 Heritage Lake), 5.00%, 9/1/48
3,250,000

3,760,022

Roseville Special Tax, 5.00%, 9/1/32(2)
1,265,000

1,481,808

Roseville Special Tax, 5.00%, 9/1/40
1,670,000

1,980,720

Roseville Special Tax, 5.00%, 9/1/44
1,475,000

1,742,889

Roseville Special Tax, 5.00%, 9/1/47(2)
6,500,000

7,463,495

Roseville Special Tax, 5.00%, 9/1/49
2,325,000

2,733,130

Roseville Special Tax, (Villages at Sierra Vista Community Facilities District No. 1), 5.00%, 9/1/36
685,000

810,040

Roseville Special Tax, (Villages at Sierra Vista Community Facilities District No. 1), 5.00%, 9/1/39
695,000

818,411

Roseville Special Tax, (Villages at Sierra Vista Community Facilities District No. 1), 5.00%, 9/1/44
1,615,000

1,885,852

Roseville Special Tax, (Villages at Sierra Vista Community Facilities District No. 1), 5.00%, 9/1/49
2,035,000

2,369,167

Roseville Special Tax, (Westbrook Community Facilities District No. 1), 5.00%, 9/1/37
1,250,000

1,434,125

Roseville Special Tax, (Westbrook Community Facilities District No. 1), 5.00%, 9/1/43
2,840,000

3,301,017

Roseville Special Tax, (Westbrook Community Facilities District No. 1), 5.00%, 9/1/44
1,650,000

1,839,172

Roseville Special Tax, (Westbrook Community Facilities District No. 1), 5.00%, 9/1/48
2,030,000

2,350,862

Roseville Natural Gas Financing Authority Rev., 5.00%, 2/15/27
5,000,000

6,155,450

Sacramento Special Tax, 5.00%, 9/1/32(2)
300,000

343,125

Sacramento Special Tax, 5.00%, 9/1/41
1,900,000

2,207,135

Sacramento Special Tax, 5.00%, 9/1/44
500,000

580,860

Sacramento Special Tax, 5.00%, 9/1/46
2,250,000

2,602,935

Sacramento Special Tax, 5.00%, 9/1/47(2)
1,900,000

2,148,995

Sacramento Special Tax, 5.00%, 9/1/49
1,000,000

1,156,850

Sacramento County Special Tax, 5.00%, 9/1/29
1,000,000

1,214,790

Sacramento County Special Tax, 5.00%, 9/1/30
1,170,000

1,419,385

Sacramento County Special Tax, 5.00%, 9/1/31
1,355,000

1,636,068

Sacramento County Special Tax, 5.00%, 9/1/32
665,000

799,696

Sacramento County Special Tax, 5.00%, 9/1/35
2,335,000

2,781,569

Sacramento County Special Tax, 5.00%, 9/1/40
2,325,000

2,698,790

Sacramento County Special Tax, 5.00%, 9/1/40
3,000,000

3,532,860

Sacramento County Special Tax, 5.00%, 9/1/45
4,645,000

5,365,439

Sacramento County Special Tax, 5.00%, 9/1/46
3,385,000

3,905,545

Sacramento Transportation Authority Rev., 5.00%, 10/1/24
1,055,000

1,186,981

San Bernardino County Special Tax, (County of San Bernardino CA Community Facilities District No. 2002-1), 5.00%, 9/1/33
3,000,000

3,396,570

San Bernardino County Special Tax, (County of San Bernardino CA Community Facilities District No. 2002-1), 4.00%, 9/1/42
700,000

754,754


24


 
Principal Amount
Value
San Bernardino County Special Tax, (County of San Bernardino CA Community Facilities District No. 2002-1), 4.00%, 9/1/48
$
1,000,000

$
1,074,270

San Bernardino County Special Tax, (County of San Bernardino CA Community Facilities District No. 2006-1), 5.00%, 9/1/43
1,300,000

1,509,625

San Bernardino County Special Tax, (County of San Bernardino CA Community Facilities District No. 2006-1), 5.00%, 9/1/48
1,200,000

1,387,584

San Buenaventura Rev., (Community Memorial Health System), 7.50%, 12/1/41
11,100,000

12,426,228

San Clemente Special Tax, 5.00%, 9/1/46
7,620,000

8,642,756

San Diego Special Tax, 5.00%, 9/1/37
970,000

1,128,731

San Diego County Rev., (Sanford Burnham Prebys Medical Discovery Institute), 5.00%, 11/1/25
835,000

1,019,493

San Diego County Rev., (Sanford Burnham Prebys Medical Discovery Institute), 5.00%, 11/1/26
525,000

638,216

San Diego County Rev., (Sanford Burnham Prebys Medical Discovery Institute), 5.00%, 11/1/30
725,000

875,532

San Diego County Special Tax, (San County Diego Community Facilities District No. 2008-01), 4.00%, 9/1/43
1,255,000

1,351,334

San Diego County Special Tax, (San County Diego Community Facilities District No. 2008-01), 4.00%, 9/1/48
1,250,000

1,342,838

San Diego County Regional Airport Authority Rev., 5.00%, 7/1/24
300,000

345,393

San Diego County Regional Airport Authority Rev., 5.00%, 7/1/25
955,000

1,099,883

San Diego County Regional Airport Authority Rev., 5.00%, 7/1/26
500,000

575,245

San Diego County Regional Airport Authority Rev., 5.00%, 7/1/44
1,500,000

1,728,825

San Diego Public Facilities Financing Authority Rev., 5.00%, 8/1/30
2,000,000

2,223,420

San Diego Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/21
390,000

422,046

San Diego Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/22
545,000

611,882

San Diego Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/23
650,000

755,872

San Diego Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/24
700,000

841,911

San Diego Unified Port District Rev., 5.00%, 9/1/26
750,000

856,913

San Francisco City & County Redevelopment Agency Successor Agency Special Tax, Capital Appreciation, 0.00%, 8/1/43(1)
5,500,000

1,520,585

San Francisco City & County Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 8/1/33
780,000

914,573

San Gorgonio Memorial Health Care District GO, 5.00%, 8/1/20
1,000,000

1,034,120

San Gorgonio Memorial Health Care District GO, 5.00%, 8/1/21
275,000

293,788

San Jacinto Community Facilities District Special Tax, 5.00%, 9/1/28
1,080,000

1,288,246

San Jacinto Community Facilities District Special Tax, 5.00%, 9/1/29
1,165,000

1,383,438

San Jacinto Community Facilities District Special Tax, 5.00%, 9/1/32
450,000

530,285

San Jacinto Community Facilities District Special Tax, 5.00%, 9/1/33
1,280,000

1,507,456

San Jacinto Community Facilities District Special Tax, 5.00%, 9/1/34
335,000

393,581

San Joaquin Hills Transportation Corridor Agency Rev., 5.25%, 1/15/44
6,000,000

6,866,280

San Joaquin Hills Transportation Corridor Agency Rev., Capital Appreciation, 0.00%, 1/15/25 (NATL)(1)
3,090,000

2,751,521


25


 
Principal Amount
Value
San Joaquin Hills Transportation Corridor Agency Rev., Capital Appreciation, 0.00%, 1/15/29 (NATL)(1)
$
165,000

$
130,099

San Joaquin Hills Transportation Corridor Agency Rev., Capital Appreciation, 0.00%, 1/15/31 (NATL)(1)
16,000,000

11,801,600

San Joaquin Hills Transportation Corridor Agency Rev., Capital Appreciation, 0.00%, 1/15/32 (NATL)(1)
290,000

205,538

San Joaquin Hills Transportation Corridor Agency Rev., Capital Appreciation, 0.00%, 1/15/36 (NATL)(1)
1,335,000

822,000

San Mateo Special Tax, 6.00%, 9/1/42
500,000

556,255

San Mateo Special Tax, 5.50%, 9/1/44
2,250,000

2,444,760

Santa Clara Unified School District GO, 4.00%, 7/1/48
4,275,000

4,792,831

Santa Margarita Water District Special Tax, 5.625%, 9/1/43
1,200,000

1,337,628

Santaluz Community Facilities District No. 2 Special Tax, 5.10%, 9/1/30
465,000

500,679

Saugus-Castaic School Facilities Financing Authority Special Tax, 6.00%, 9/1/43
1,465,000

1,651,509

Saugus/Hart School Facilities Financing Authority Special Tax, 5.00%, 9/1/41
1,235,000

1,418,953

Saugus/Hart School Facilities Financing Authority Special Tax, 5.00%, 9/1/46
1,245,000

1,424,828

Silicon Valley Tobacco Securitization Authority Rev., Capital Appreciation, 0.00%, 6/1/36(1)
32,000,000

12,642,880

Silicon Valley Tobacco Securitization Authority Rev., Capital Appreciation, 0.00%, 6/1/41(1)
11,465,000

3,392,723

Southern California Public Power Authority Rev., 5.25%, 11/1/19
2,445,000

2,460,257

Southern California Public Power Authority Rev., 5.00%, 11/1/29
2,000,000

2,549,700

Southern California Public Power Authority Rev., 5.00%, 11/1/33
3,755,000

4,998,506

Southern Mono Health Care District GO, Capital Appreciation, 0.00%, 8/1/26 (NATL)(1)
1,800,000

1,592,028

State of California GO, 5.00%, 11/1/19
4,500,000

4,528,980

State of California GO, 5.00%, 10/1/24
14,590,000

17,451,537

State of California GO, 5.25%, 2/1/30
5,000,000

5,491,250

State of California GO, 5.00%, 9/1/34
10,000,000

12,411,000

State of California GO, 5.00%, 11/1/47
8,375,000

10,418,500

State of California GO, 5.00%, 4/1/49
2,000,000

2,536,440

State of California GO, VRN, 2.50%, (MUNIPSA plus 1.15%), 5/1/20
960,000

961,930

Stockton Public Financing Authority Rev., 5.00%, 9/1/28 (BAM)
2,215,000

2,618,817

Stockton Public Financing Authority Rev., 5.00%, 9/1/29 (BAM)
1,750,000

2,071,790

Stockton Public Financing Authority Rev., 6.25%, 10/1/40
1,750,000

2,097,112

Stockton Public Financing Authority Rev., (Stockton Water Rev.), 5.00%, 10/1/33 (BAM)
1,000,000

1,279,230

Stockton Public Financing Authority Rev., (Stockton Water Rev.), 5.00%, 10/1/34 (BAM)
1,000,000

1,273,030

Stockton Public Financing Authority Rev., (Stockton), 5.00%, 9/1/37
2,500,000

2,928,825

Stockton Public Financing Authority Rev., (Stockton), 5.00%, 9/1/43
3,000,000

3,483,390

Sulphur Springs Union School District Special Tax, (Sulphur Springs School District Community Facilities District No. 2006-1), 5.00%, 9/1/43
1,410,000

1,608,091

Sulphur Springs Union School District Special Tax, (Sulphur Springs School District Community Facilities District No. 2006-1), 5.00%, 9/1/47
1,820,000

2,070,978

Sunnyvale Special Tax, 7.75%, 8/1/32
6,500,000

6,520,020


26


 
Principal Amount
Value
Tahoe-Truckee Unified School District GO, Capital Appreciation, 0.00%, 8/1/22 (NATL)(1)
$
2,690,000

$
2,592,972

Tahoe-Truckee Unified School District GO, Capital Appreciation, 0.00%, 8/1/23 (NATL)(1)
2,220,000

2,103,694

Tejon Ranch Public Facilities Finance Authority Special Tax, 5.00%, 9/1/45
6,000,000

6,804,840

Temecula Valley Unified School District Community Facilities District Special Tax, (Temecula Valley Unified School District Community Facilities District No. 2014-1), 5.00%, 9/1/43
1,000,000

1,162,470

Temescal Valley Water District Special Tax, (Temescal Valley Water District Community Facilities District No. 4 Terramor), 5.00%, 9/1/43
4,730,000

5,394,943

Temescal Valley Water District Special Tax, (Temescal Valley Water District Community Facilities District No. 4 Terramor), 5.00%, 9/1/48
6,040,000

6,874,668

Tobacco Securitization Authority of Northern California Rev., (Sacramento County Tobacco Securitization Corp.), 5.50%, 6/1/45
2,000,000

2,007,160

Tobacco Securitization Authority of Northern California Rev., (Sacramento County Tobacco Securitization Corp.), Capital Appreciation, 0.00%, 6/1/45(1)
20,000,000

2,512,600

Tobacco Securitization Authority of Northern California Rev., (Sacramento County Tobacco Securitization Corp.), Capital Appreciation, 0.00%, 6/1/45(1)
25,000,000

5,596,000

Tobacco Securitization Authority of Southern California Rev., (San Diego County Tobacco Asset Securitization Corp.), 5.00%, 6/1/37
2,250,000

2,259,562

Tobacco Securitization Authority of Southern California Rev., (San Diego County Tobacco Asset Securitization Corp.), 5.125%, 6/1/46
14,120,000

14,149,511

Tobacco Securitization Authority of Southern California Rev., (San Diego County Tobacco Asset Securitization Corp.), Capital Appreciation, 0.00%, 6/1/46(1)
25,000,000

3,092,250

Tracy Community Facilities District Special Tax, (Tracy Community Facilities District No. 2016-01), 5.00%, 9/1/34
1,570,000

1,849,884

Tracy Community Facilities District Special Tax, (Tracy Community Facilities District No. 2016-01), 5.00%, 9/1/39
1,280,000

1,492,390

Tracy Community Facilities District Special Tax, (Tracy Community Facilities District No. 2016-01), 5.00%, 9/1/43
2,500,000

2,899,400

Tracy Community Facilities District Special Tax, (Tracy Community Facilities District No. 2016-01), 5.00%, 9/1/44
1,300,000

1,506,583

Tracy Community Facilities District Special Tax, (Tracy Community Facilities District No. 2016-01), 5.00%, 9/1/48
2,750,000

3,174,957

Tracy Community Facilities District Special Tax, (Tracy Community Facilities District No. 2016-01), 5.00%, 9/1/49
1,875,000

2,162,925

Tracy Public Financing Authority Special Tax, 5.00%, 9/2/19
2,285,000

2,285,000

Tracy Public Financing Authority Special Tax, 5.00%, 9/2/20
2,100,000

2,173,752

Tulare Sewer Rev., 5.00%, 11/15/22 (AGM)
500,000

562,455

Tulare Sewer Rev., 5.00%, 11/15/24 (AGM)
500,000

599,230

Tulare Sewer Rev., 5.00%, 11/15/25 (AGM)
400,000

495,892

Tustin Community Facilities District Special Tax, 5.00%, 9/1/37
3,330,000

3,817,179

Tustin Community Facilities District Special Tax, 5.00%, 9/1/40
1,100,000

1,253,450

Tustin Community Facilities District Special Tax, 5.00%, 9/1/45
2,200,000

2,497,726

University of California Rev., VRDN, 1.23%, 9/3/19
2,900,000

2,900,000

University of California Rev., VRDN, 1.25%, 9/3/19
9,700,000

9,700,000

Upland COP, (San Antonio Regional Hospital Obligated Group), 4.00%, 1/1/42
3,000,000

3,249,030

Upland COP, (San Antonio Regional Hospital Obligated Group), 5.00%, 1/1/47
2,500,000

2,923,775

Val Verde Unified School District Special Tax, 5.00%, 9/1/37
1,750,000

1,985,690


27


 
Principal Amount
Value
Victorville Joint Powers Finance Authority Rev., VRDN, 1.35%, 9/6/19 (LOC: BNP Paribas)
$
6,430,000

$
6,430,000

Washington Township Health Care District Rev., 5.00%, 7/1/24
500,000

582,835

Washington Township Health Care District Rev., 5.00%, 7/1/25
500,000

596,765

Washington Township Health Care District Rev., 5.00%, 7/1/26
400,000

478,212

Washington Township Health Care District Rev., 5.00%, 7/1/26
550,000

670,302

Washington Township Health Care District Rev., 3.25%, 7/1/27
1,000,000

1,084,580

Washington Township Health Care District Rev., 5.00%, 7/1/27
600,000

743,610

Washington Township Health Care District Rev., 3.50%, 7/1/28
750,000

814,433

Washington Township Health Care District Rev., 5.00%, 7/1/28
1,300,000

1,634,022

Washington Township Health Care District Rev., 3.75%, 7/1/29
1,000,000

1,093,820

Washington Township Health Care District Rev., 5.00%, 7/1/29
1,400,000

1,782,424

West Valley-Mission Community College District GO, 4.00%, 8/1/44
8,000,000

9,325,280

Whittier Rev., (Presbyterian Intercommunity Hospital Obligated Group), 5.00%, 6/1/44
3,500,000

3,929,905

William S Hart Union High School District Special Tax, 5.00%, 9/1/42
1,350,000

1,563,394

William S Hart Union High School District Special Tax, 5.00%, 9/1/47
2,350,000

2,710,067

Woodland Special Tax, 4.00%, 9/1/41
2,735,000

2,913,459

Woodland Special Tax, 4.00%, 9/1/45
2,740,000

2,909,880

Yuba City Unified School District GO, Capital Appreciation, 0.00%, 3/1/25 (NATL)(1)
1,500,000

1,372,425

 
 
1,446,673,598

Guam — 1.0%
 
 
Guam Government Rev., 5.125%, 1/1/42
1,000,000

1,052,370

Guam Government Power Authority Rev., 5.00%, 10/1/34
850,000

915,246

Guam Government Power Authority Rev., 5.00%, 10/1/36
1,940,000

2,265,997

Guam Government Power Authority Rev., 5.00%, 10/1/37
1,575,000

1,834,245

Guam Government Waterworks Authority Rev., 5.00%, 7/1/40
3,115,000

3,620,627

Guam Government Waterworks Authority Rev., 5.00%, 1/1/46
3,000,000

3,412,950

Port Authority of Guam Government Rev., 5.00%, 7/1/48
1,500,000

1,798,380

 
 
14,899,815

U.S. Virgin Islands — 0.2%
 
 
Virgin Islands Public Finance Authority Rev., 5.00%, 9/1/33(2)
2,500,000

2,788,700

TOTAL INVESTMENT SECURITIES — 99.0%
(Cost $1,352,382,976)
 
1,464,362,113

OTHER ASSETS AND LIABILITIES — 1.0%
 
15,018,259

TOTAL NET ASSETS — 100.0%
 
$
1,479,380,372



28


NOTES TO SCHEDULE OF INVESTMENTS
AGM
-
Assured Guaranty Municipal Corporation
BAM
-
Build America Mutual Assurance Company
COP
-
Certificates of Participation
GA
-
Guaranty Agreement
GO
-
General Obligation
LOC
-
Letter of Credit
MUNIPSA
-
SIFMA Municipal Swap Index
NATL
-
National Public Finance Guarantee Corporation
SBBPA
-
Standby Bond Purchase Agreement
VRDN
-
Variable Rate Demand Note. The instrument may be payable upon demand and adjusts periodically based upon the terms set forth in the security's offering documents. The rate shown is effective at the period end and the reference rate and spread, if any, is indicated. The date of the demand feature is disclosed.
VRN
-
Variable Rate Note. The rate adjusts periodically based upon the terms set forth in the security’s offering documents. The rate shown is effective at the period end and the reference rate and spread, if any, is indicated.
(1)
Security is a zero-coupon bond. Zero-coupon securities are issued at a substantial discount from their value at maturity.
(2)
Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration, normally to qualified institutional investors. The aggregate value of these securities at the period end was $200,796,950, which represented 13.6% of total net assets.
(3)
Non-income producing.
(4)
Security is in default.
(5)
When-issued security. The issue price and yield are fixed on the date of the commitment, but payment and delivery are scheduled for a future date.


See Notes to Financial Statements.

29


Statement of Assets and Liabilities
AUGUST 31, 2019
 
Assets
 
Investment securities, at value (cost of $1,352,382,976)
$
1,464,362,113

Cash
861,171

Receivable for investments sold
472,250

Receivable for capital shares sold
2,909,522

Interest receivable
19,348,829

 
1,487,953,885

 
 
Liabilities
 
Payable for investments purchased
5,385,659

Payable for capital shares redeemed
2,130,879

Accrued management fees
532,806

Distribution and service fees payable
36,544

Dividends payable
487,625

 
8,573,513

 
 
Net Assets
$
1,479,380,372

 
 
Net Assets Consist of:
 
Capital paid in
$
1,370,562,094

Distributable earnings
108,818,278

 
$
1,479,380,372

 
 
Net Assets
Shares Outstanding
Net Asset Value Per Share
Investor Class

$938,094,153

84,509,997

$11.10
I Class

$445,520,310

40,151,991

$11.10
Y Class

$15,881

1,431

$11.10
A Class

$70,002,762

6,306,151

$11.10*
C Class

$25,747,266

2,319,162

$11.10
*Maximum offering price $11.62 (net asset value divided by 0.955).
 

See Notes to Financial Statements.

30


Statement of Operations
YEAR ENDED AUGUST 31, 2019
Investment Income (Loss)
Income:
 
Interest
$
49,630,857

 
 
Expenses:
 
Management fees
5,675,231

Distribution and service fees:
 
A Class
149,669

C Class
234,791

Trustees' fees and expenses
90,120

Other expenses
653

 
6,150,464

 
 
Net investment income (loss)
43,480,393

 
 
Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
 
Investment transactions
(3,818,234
)
Futures contract transactions
1,025,631

 
(2,792,603
)
 
 
Change in net unrealized appreciation (depreciation) on:
 
Investments
75,010,684

Futures contracts
(61,503
)
 
74,949,181

 
 
Net realized and unrealized gain (loss)
72,156,578

 
 
Net Increase (Decrease) in Net Assets Resulting from Operations
$
115,636,971



See Notes to Financial Statements.

31


Statement of Changes in Net Assets
 
YEARS ENDED AUGUST 31, 2019 AND AUGUST 31, 2018
Increase (Decrease) in Net Assets
August 31, 2019
August 31, 2018
Operations
 
 
Net investment income (loss)
$
43,480,393

$
39,129,050

Net realized gain (loss)
(2,792,603
)
12,195,630

Change in net unrealized appreciation (depreciation)
74,949,181

(24,514,829
)
Net increase (decrease) in net assets resulting from operations
115,636,971

26,809,851

 
 
 
Distributions to Shareholders
 
 
From earnings:
 
 
Investor Class
(30,134,597
)
(30,024,592
)
I Class
(10,895,838
)
(6,987,422
)
Y Class
(251
)
(195
)
A Class
(1,884,721
)
(1,709,065
)
C Class
(563,118
)
(673,692
)
Decrease in net assets from distributions
(43,478,525
)
(39,394,966
)
 
 
 
Capital Share Transactions
 
 
Net increase (decrease) in net assets from capital share transactions (Note 5)
187,856,506

159,939,806

 
 
 
Net increase (decrease) in net assets
260,014,952

147,354,691

 
 
 
Net Assets
 
 
Beginning of period
1,219,365,420

1,072,010,729

End of period
$
1,479,380,372

$
1,219,365,420



See Notes to Financial Statements.

32


Notes to Financial Statements
 
AUGUST 31, 2019

1. Organization

American Century California Tax-Free and Municipal Funds (the trust) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company and is organized as a Massachusetts business trust. California High-Yield Municipal Fund (the fund) is one fund in a series issued by the trust. The fund’s investment objective is to seek high current income that is exempt from federal and California income taxes.

The fund offers the Investor Class, I Class, Y Class, A Class and C Class. The A Class may incur an initial sales charge. The A Class and C Class may be subject to a contingent deferred sales charge.
 
2. Significant Accounting Policies

The following is a summary of significant accounting policies consistently followed by the fund in preparation of its financial statements. The fund is an investment company and follows accounting and reporting guidance in accordance with accounting principles generally accepted in the United States of America. This may require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from these estimates. Management evaluated the impact of events or transactions occurring through the date the financial statements were issued that would merit recognition or disclosure.

Investment Valuations — The fund determines the fair value of its investments and computes its net asset value per share at the close of regular trading (usually 4 p.m. Eastern time) on the New York Stock Exchange (NYSE) on each day the NYSE is open. The Board of Trustees has adopted valuation policies and procedures to guide the investment advisor in the fund’s investment valuation process and to provide methodologies for the oversight of the fund’s pricing function.
 
Fixed income securities are valued at the evaluated mean as provided by independent pricing services or at the mean of the most recent bid and asked prices as provided by investment dealers. Municipal securities are valued using market models that consider trade data, quotations from dealers and active market makers, relevant yield curve and spread data, creditworthiness, trade data or market information on comparable securities, and other relevant security specific information.
 
Exchange-traded futures contracts are valued at the settlement price as provided by the appropriate exchange.
 
If the fund determines that the market price for an investment is not readily available or the valuation methods mentioned above do not reflect an investment’s fair value, such investment is valued as determined in good faith by the Board of Trustees or its delegate, in accordance with policies and procedures adopted by the Board of Trustees. In its determination of fair value, the fund may review several factors including, but not limited to, market information regarding the specific investment or comparable investments and correlation with other investment types, futures indices or general market indicators. Circumstances that may cause the fund to use these procedures to value an investment include, but are not limited to: an investment has been declared in default or is distressed; trading in a security has been suspended during the trading day or a security is not actively trading on its principal exchange; prices received from a regular pricing source are deemed unreliable; or there is a foreign market holiday and no trading occurred.
 
The fund monitors for significant events occurring after the close of an investment’s primary exchange but before the fund’s net asset value per share is determined. Significant events may include, but are not limited to: corporate announcements and transactions; governmental action and political unrest that could impact a specific investment or an investment sector; or armed conflicts, natural disasters and similar events that could affect investments in a specific country or region.
 
Security Transactions — Security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes.
 
Investment Income — Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums.
 

33


Segregated Assets — In accordance with the 1940 Act, the fund segregates assets on its books and records to cover certain types of investment securities and other financial instruments. American Century Investment Management, Inc. (ACIM) (the investment advisor) monitors, on a daily basis, the securities segregated to ensure the fund designates a sufficient amount of liquid assets, marked-to-market daily. The fund may also receive assets or be required to pledge assets at the custodian bank or with a broker for collateral requirements.
 
Income Tax Status — It is the fund’s policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
 
Multiple Class — All shares of the fund represent an equal pro rata interest in the net assets of the class to which such shares belong, and have identical voting, dividend, liquidation and other rights and the same terms and conditions, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. Income, non-class specific expenses, and realized and unrealized capital gains and losses of the fund are allocated to each class of shares based on their relative net assets.
 
Distributions to Shareholders — Distributions from net investment income, if any, are declared daily and paid monthly. Distributions from net realized gains, if any, are generally declared and paid annually.
 
Indemnifications — Under the trust’s organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.

3. Fees and Transactions with Related Parties

Certain officers and trustees of the trust are also officers and/or directors of American Century Companies, Inc. (ACC). The trust's investment advisor, ACIM, the trust's distributor, American Century Investment Services, Inc. (ACIS), and the trust's transfer agent, American Century Services, LLC, are wholly owned, directly or indirectly, by ACC.
 
Management Fees — The trust has entered into a management agreement with ACIM, under which ACIM provides the fund with investment advisory and management services in exchange for a single, unified management fee (the fee) per class. The agreement provides that all expenses of managing and operating the fund, except distribution and service fees, brokerage expenses, taxes, interest, fees and expenses of the independent trustees (including legal counsel fees), and extraordinary expenses, will be paid by ACIM. The fee is computed and accrued daily based on each class's daily net assets and paid monthly in arrears. The difference in the fee among the classes is a result of their separate arrangements for non-Rule 12b-1 shareholder services. It is not the result of any difference in advisory or custodial fees or other expenses related to the management of the fund’s assets, which do not vary by class. The fee consists of (1) an Investment Category Fee based on the daily net assets of the fund and certain other accounts managed by the investment advisor that are in the same broad investment category as the fund and (2) a Complex Fee based on the assets of all the funds in the American Century Investments family of funds.

The Investment Category Fee range, the Complex Fee range and the effective annual management fee for each class for the period ended August 31, 2019 are as follows:
 
Investment Category Fee Range
Complex Fee Range
Effective Annual Management Fee
Investor Class
0.1925% to
0.3100%
0.2500% to 0.3100%
0.49%
I Class
0.0500% to 0.1100%
0.29%
Y Class
0.0200% to 0.0800%
0.26%
A Class
0.2500% to 0.3100%
0.49%
C Class
0.2500% to 0.3100%
0.49%

34


Distribution and Service Fees — The Board of Trustees has adopted a separate Master Distribution and Individual Shareholder Services Plan for each of the A Class and C Class (collectively the plans), pursuant to Rule 12b-1 of the 1940 Act. The plans provide that the A Class will pay ACIS an annual distribution and service fee of 0.25%. The plans provide that the C Class will pay ACIS an annual distribution and service fee of 1.00%, of which 0.25% is paid for individual shareholder services and 0.75% is paid for distribution services. The fees are computed and accrued daily based on each class’s daily net assets and paid monthly in arrears. The fees are used to pay financial intermediaries for distribution and individual shareholder services. Fees incurred under the plans during the period ended August 31, 2019 are detailed in the Statement of Operations.

Trustees’ Fees and Expenses — The Board of Trustees is responsible for overseeing the investment advisor’s management and operations of the fund. The trustees receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.
 
Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Trustees. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. During the period, the interfund purchases and sales were $73,968,190 and $33,460,000, respectively. The interfund transactions had no effect on the Statement of Operations in net realized gain (loss) on investment transactions.

4. Investment Transactions

Purchases and sales of investment securities, excluding short-term investments, for the period ended August 31, 2019 were $686,618,761 and $493,964,240, respectively.


35


5. Capital Share Transactions

Transactions in shares of the fund were as follows (unlimited number of shares authorized):
 
Year ended
August 31, 2019
Year ended
August 31, 2018
 
Shares
Amount
Shares
Amount
Investor Class
 
 
 
 
Sold
23,940,254

$
253,460,969

23,521,902

$
248,233,352

Issued in reinvestment of distributions
2,536,222

26,869,020

2,542,455

26,798,289

Redeemed
(27,115,606
)
(285,562,928
)
(20,210,238
)
(213,251,737
)
 
(639,130
)
(5,232,939
)
5,854,119

61,779,904

I Class
 
 
 
 
Sold
23,126,180

245,972,453

13,900,912

146,672,880

Issued in reinvestment of distributions
913,215

9,725,591

574,539

6,051,124

Redeemed
(6,986,568
)
(73,344,053
)
(4,881,425
)
(51,522,192
)
 
17,052,827

182,353,991

9,594,026

101,201,812

Y Class
 
 
 
 
Sold
906

9,841

—

—

Issued in reinvestment of distributions
23

251

19

195

Redeemed
(5
)
(53
)
—

—

 
924

10,039

19

195

A Class
 
 
 
 
Sold
1,566,444

16,703,741

1,143,922

12,046,507

Issued in reinvestment of distributions
115,047

1,220,657

102,068

1,075,988

Redeemed
(761,701
)
(8,078,615
)
(1,068,975
)
(11,336,603
)
 
919,790

9,845,783

177,015

1,785,892

C Class
 
 
 
 
Sold
595,323

6,311,496

336,526

3,550,962

Issued in reinvestment of distributions
46,191

489,797

56,673

597,430

Redeemed
(561,765
)
(5,921,661
)
(852,056
)
(8,976,389
)
 
79,749

879,632

(458,857
)
(4,827,997
)
Net increase (decrease)
17,414,160

$
187,856,506

15,166,322

$
159,939,806


6. Fair Value Measurements

The fund’s investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.

•
Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments.

•
Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars.

•
Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions).

The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments.
 
As of period end, the fund’s investment securities were classified as Level 2. The Schedule of Investments provides additional information on the fund’s portfolio holdings.


36


7. Derivative Instruments

Interest Rate Risk — The fund is subject to interest rate risk in the normal course of pursuing its investment objectives. The value of bonds generally declines as interest rates rise. A fund may enter into futures contracts based on a bond index or a specific underlying security. A fund may purchase futures contracts to gain exposure to increases in market value or sell futures contracts to protect against a decline in market value. Upon entering into a futures contract, a fund will segregate cash, cash equivalents or other appropriate liquid securities on its records in amounts sufficient to meet requirements. Subsequent payments (variation margin) are made or received daily, in cash, by a fund. The variation margin is equal to the daily change in the contract value and is recorded as unrealized gains and losses. A fund recognizes a realized gain or loss when the futures contract is closed or expires. Net realized and unrealized gains or losses occurring during the holding period of futures contracts are a component of net realized gain (loss) on futures contract transactions and change in net unrealized appreciation (depreciation) on futures contracts, respectively. One of the risks of entering into futures contracts is the possibility that the change in value of the contract may not correlate with the changes in value of the underlying securities. During the period, the fund participated in interest rate risk derivative instruments for temporary investment purposes.
 
At period end, the fund did not have any derivative instruments disclosed on the Statement of Assets and Liabilities. For the year ended August 31, 2019, the effect of interest rate risk derivative instruments on the Statement of Operations was $1,025,631 in net realized gain (loss) on futures contract transactions and $(61,503) in change in net unrealized appreciation (depreciation) on futures contracts.

8. Risk Factors

The fund focuses its investments in a single state and therefore may have more exposure to credit risk related to the state of California than a fund with a broader geographical diversification. The fund invests in lower-rated debt securities, which are subject to substantial risks including liquidity risk and credit risk.

9. Federal Tax Information

The tax character of distributions paid during the years ended August 31, 2019 and August 31, 2018 were as follows:
 
2019
2018
Distributions Paid From
 
 
Exempt income
$
43,478,525

$
39,394,966

Long-term capital gains
—

—


The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.




















37


As of period end, the federal tax cost of investments and the components of distributable earnings on a tax-basis were as follows:
Federal tax cost of investments
$
1,352,382,976

Gross tax appreciation of investments
$
114,862,823

Gross tax depreciation of investments
(2,883,686
)
Net tax appreciation (depreciation) of investments
111,979,137

Other book-to-tax adjustments
$
(263,823
)
Undistributed exempt income
—

Accumulated short-term capital losses
$
(889,894
)
Accumulated long-term capital losses
$
(2,007,142
)

The cost of investments for federal income tax purposes was the same as the cost for financial reporting purposes.

Accumulated capital losses represent net capital loss carryovers that may be used to offset future realized capital gains for federal income tax purposes. The capital loss carryovers may be carried forward for an unlimited period. Future capital loss carryover utilization in any given year may be subject to Internal Revenue Code limitations.

10. Recently Issued Accounting Standards

In March 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2017-08, “Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities” (ASU 2017-08). ASU 2017-08 amends the amortization period for certain purchased callable debt securities held at a premium, shortening such period to the earliest call date. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Management is currently evaluating the impact that adopting ASU 2017-08 will have on the financial statements.

38


Financial Highlights
For a Share Outstanding Throughout the Years Ended August 31 (except as noted)
Per-Share Data
Ratios and Supplemental Data
 
 
Income From Investment Operations:
 
 
Ratio to Average Net Assets of:
 
 
 
Net Asset
Value,
Beginning
of Period
Net
Investment Income (Loss)(1)
Net
Realized and Unrealized
Gain (Loss)
Total
From Investment Operations
Distributions From Net Investment Income
Net Asset
Value, End
of Period
Total
Return(2)
Operating Expenses
Net
Investment Income
(Loss)
Portfolio Turnover
Rate
Net Assets,
End of Period
(in thousands)
Investor Class
 
 
 
 
 
 
 
 
 
 
 
2019
$10.52
0.36
0.58
0.94
(0.36)
$11.10
9.06%
0.50%
3.40%
39%

$938,094

2018
$10.65
0.37
(0.13)
0.24
(0.37)
$10.52
2.38%
0.50%
3.49%
52%

$896,098

2017
$10.97
0.37
(0.32)
0.05
(0.37)
$10.65
0.58%
0.50%
3.53%
50%

$844,105

2016
$10.30
0.37
0.67
1.04
(0.37)
$10.97
10.27%
0.50%
3.47%
19%

$860,997

2015
$10.25
0.39
0.05
0.44
(0.39)
$10.30
4.32%
0.50%
3.75%
41%

$631,702

I Class
 
 
 
 
 
 
 
 
 
2019
$10.52
0.38
0.58
0.96
(0.38)
$11.10
9.38%
0.30%
3.60%
39%

$445,520

2018
$10.64
0.39
(0.12)
0.27
(0.39)
$10.52
2.58%
0.30%
3.69%
52%

$243,002

2017
$10.97
0.39
(0.33)
0.06
(0.39)
$10.64
0.69%
0.30%
3.73%
50%

$143,717

2016
$10.30
0.39
0.67
1.06
(0.39)
$10.97
10.49%
0.30%
3.67%
19%

$137,888

2015
$10.25
0.41
0.05
0.46
(0.41)
$10.30
4.53%
0.30%
3.95%
41%

$83,751

Y Class
 
 
 
 
 
 
 
 
 
2019
$10.52
0.38
0.58
0.96
(0.38)
$11.10
9.31%
0.27%
3.63%
39%

$16

2018
$10.65
0.39
(0.13)
0.26
(0.39)
$10.52
2.59%
0.27%
3.72%
52%

$5

2017(3)
$10.39
0.15
0.26
0.41
(0.15)
$10.65
4.01%
0.27%(4)
3.73%(4)
50%(5)

$5




For a Share Outstanding Throughout the Years Ended August 31 (except as noted)
Per-Share Data
Ratios and Supplemental Data
 
 
Income From Investment Operations:
 
 
Ratio to Average Net Assets of:
 
 
 
Net Asset
Value,
Beginning
of Period
Net
Investment Income (Loss)(1)
Net
Realized and Unrealized
Gain (Loss)
Total
From Investment Operations
Distributions From Net Investment Income
Net Asset
Value, End
of Period
Total
Return(2)
Operating Expenses
Net
Investment Income
(Loss)
Portfolio Turnover
Rate
Net Assets,
End of Period
(in thousands)
A Class
 
 
 
 
 
 
 
 
 
 
 
2019
$10.52
0.33
0.58
0.91
(0.33)
$11.10
8.79%
0.75%
3.15%
39%

$70,003

2018
$10.65
0.34
(0.13)
0.21
(0.34)
$10.52
2.12%
0.75%
3.24%
52%

$56,688

2017
$10.97
0.34
(0.32)
0.02
(0.34)
$10.65
0.33%
0.75%
3.28%
50%

$55,457

2016
$10.30
0.34
0.67
1.01
(0.34)
$10.97
10.00%
0.75%
3.22%
19%

$135,279

2015
$10.25
0.36
0.05
0.41
(0.36)
$10.30
4.06%
0.75%
3.50%
41%

$119,150

C Class
 
 
 
 
 
 
 
 
 
 
 
2019
$10.53
0.26
0.57
0.83
(0.26)
$11.10
7.98%
1.50%
2.40%
39%

$25,747

2018
$10.65
0.26
(0.12)
0.14
(0.26)
$10.53
1.36%
1.50%
2.49%
52%

$23,572

2017
$10.97
0.27
(0.32)
(0.05)
(0.27)
$10.65
(0.42)%
1.50%
2.53%
50%

$28,726

2016
$10.30
0.26
0.67
0.93
(0.26)
$10.97
9.18%
1.50%
2.47%
19%

$34,070

2015
$10.25
0.28
0.05
0.33
(0.28)
$10.30
3.29%
1.50%
2.75%
41%

$27,917

 
Notes to Financial Highlights
(1)
Computed using average shares outstanding throughout the period.
(2)
Total returns are calculated based on the net asset value of the last business day and do not reflect applicable sales charges, if any. Total returns for periods less than one year are not annualized.
(3)
April 10, 2017 (commencement of sale) through August 31, 2017.
(4)
Annualized.
(5)
Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended August 31, 2017.


See Notes to Financial Statements.



Report of Independent Registered Public Accounting Firm

To the Board of Trustees of American Century California Tax-Free and Municipal Funds and Shareholders of California High-Yield Municipal Fund

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of California High-Yield Municipal Fund (one of the funds constituting American Century California Tax-Free and Municipal Funds, referred to hereafter as the "Fund") as of August 31, 2019, the related statement of operations for the year ended August 31, 2019, the statement of changes in net assets for each of the two years in the period ended August 31, 2019, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of August 31, 2019, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended August 31, 2019 and the financial highlights for each of the periods indicated in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of August 31, 2019 by correspondence with the custodian and brokers. We believe that our audits provide a reasonable basis for our opinion.


/s/ PricewaterhouseCoopers LLP
Kansas City, Missouri
October 18, 2019

We have served as the auditor of one or more investment companies in American Century Investments since 1997.

41


Management

Board of Trustees

The individuals listed below serve as trustees of the funds. Each trustee will continue to serve in this capacity until death, retirement, resignation or removal from office. The board has adopted a mandatory retirement age for trustees who are not “interested persons,” as that term is defined in the Investment Company Act (independent trustees). Independent trustees shall retire on December 31 of the year in which they reach their 75th birthday; provided, however, that on or after January 1, 2022, independent trustees shall retire on December 31 of the year in which they reach their 76th birthday.
Mr. Thomas is an “interested person” because he currently serves as President and Chief Executive Officer of American Century Companies, Inc. (ACC), the parent company of American Century Investment Management, Inc. (ACIM or the advisor). The other trustees (more than three-fourths of the total number) are independent. They are not employees, directors or officers of, and have no financial interest in, ACC or any of its wholly owned, direct or indirect, subsidiaries, including ACIM, American Century Investment Services, Inc. (ACIS) and American Century Services, LLC (ACS), and they do not have any other affiliations, positions or relationships that would cause them to be considered “interested persons” under the Investment Company Act. The trustees serve in this capacity for eight (in the case of Jonathan S. Thomas, 16; and Ronald J. Gilson, 9) registered investment companies in the American Century Investments family of funds.
The following table presents additional information about the trustees. The mailing address for each trustee other than Mr. Thomas is 1665 Charleston Road, Mountain View, California 94043. The mailing address for Mr. Thomas is 4500 Main Street, Kansas City, Missouri 64111.
Name
(Year of Birth)
Position(s) Held with Funds
Length of Time Served
Principal Occupation(s) During Past 5 Years
Number of American Century Portfolios Overseen by Trustee
Other Directorships Held During Past 5 Years
Independent Trustees


Tanya S. Beder
(1955)
Trustee
Since 2011
Chairman and CEO, SBCC Group Inc. (independent advisory services) (2006 to present)
44
CYS
Investments,
Inc.; Nabors
Industries Ltd.
Jeremy I. Bulow
(1954)
Trustee
Since 2011
Professor of Economics, Stanford University, Graduate School of Business (1979 to present)
44
None
Anne Casscells
(1958)
Trustee
Since 2016
Co-Chief Executive Officer and Chief Investment Officer, Aetos Alternatives Management (investment advisory firm) (2001 to present); Lecturer in Accounting, Stanford University, Graduate School of Business (2009 to 2017)
44
None
Ronald J. Gilson
(1946)
Trustee and Chairman of the Board
Since 1995
(Chairman since 2005)
Charles J. Meyers Professor of Law and Business, Emeritus, Stanford Law School (1979 to 2016); Marc and Eva Stern Professor of Law and Business, Columbia University School of Law (1992 to present)
49
None

42


Name
(Year of Birth)
Position(s) Held with Funds
Length of Time Served
Principal Occupation(s) During Past 5 Years
Number of American Century Portfolios Overseen by Trustee
Other Directorships Held During Past 5 Years
Independent Trustees


Frederick L. A. Grauer
(1946)
Trustee
Since 2008
Senior Advisor, Credit Sesame, Inc. (credit monitoring firm) (2018 to present); Senior Advisor, Course Hero (an educational technology company) (2015 to present); Senior Advisor, iShares by BlackRock, Inc. (investment management firm) (2013 to 2015)
44
None
Jonathan D. Levin
(1972)
Trustee
Since 2016
Philip H. Knight Professor and Dean, Graduate School of Business, Stanford University (2016 to present); Professor, Stanford University, (2000 to present); Chair, Department of Economics, Stanford University (2011 to 2014)
44
None
Peter F. Pervere
(1947)
Trustee
Since 2007
Retired
44
None
John B. Shoven
(1947)
Trustee
Since 2002
Charles R. Schwab Professor of Economics, Stanford University (1973 to present)
44
Cadence Design Systems; Exponent; Financial Engines
Interested Trustee


Jonathan S. Thomas
(1963)
Trustee and President
Since 2007
President and Chief Executive Officer, ACC (2007 to present). Also serves as Chief Executive Officer, ACS; Executive Vice President, ACIM; Director, ACC, ACIM and other ACC subsidiaries
116
BioMed Valley Discoveries, Inc.

The Statement of Additional Information has additional information about the fund's trustees and is available without charge, upon request, by calling 1-800-345-2021.


43


Officers

The following table presents certain information about the executive officers of the funds. Each officer serves as an officer for 16 (in the case of Robert J. Leach, 15) investment companies in the American Century family of funds. No officer is compensated for his or her service as an officer of the funds. The listed officers are interested persons of the funds and are appointed or re-appointed on an annual basis. The mailing address for each of the officers listed below is 4500 Main Street, Kansas City, Missouri 64111.
Name
(Year of Birth)
Offices with the Funds
Principal Occupation(s) During the Past Five Years
Jonathan S. Thomas
(1963)
Trustee and President since 2007
President and Chief Executive Officer, ACC (2007 to present). Also serves as Chief Executive Officer, ACS; Executive Vice President, ACIM; Director, ACC, ACIM and other ACC subsidiaries
R. Wes Campbell
(1974)
Chief Financial Officer and Treasurer since 2018
Investment Operations and Investment Accounting, ACS (2000 to present)
Amy D. Shelton
(1964)
Chief Compliance Officer and Vice President since 2014
Chief Compliance Officer, American Century funds, (2014 to present); Chief Compliance Officer, ACIM (2014 to present); Chief Compliance Officer, ACIS (2009 to present). Also serves as Vice President, ACIS
Charles A. Etherington
(1957)
General Counsel since 2007 and Senior Vice President since 2006
Attorney, ACC (1994 to present); Vice President, ACC (2005 to present); General Counsel, ACC (2007 to present). Also serves as General Counsel, ACIM, ACS, ACIS and other ACC subsidiaries; and Senior Vice President, ACIM and ACS
C. Jean Wade
(1964)
Vice President since 2012
Senior Vice President, ACS (2017 to present); Vice President, ACS (2000 to 2017)
Robert J. Leach
(1966)
Vice President since 2006
Vice President, ACS (2000 to present)
David H. Reinmiller
(1963)
Vice President since 2000
Attorney, ACC (1994 to present). Also serves as Vice President, ACIM and ACS
Ward D. Stauffer
(1960)
Secretary since 2005
Attorney, ACC (2003 to present)


44


Approval of Management Agreement


At a meeting held on June 19, 2019, the Fund’s Board of Trustees (the "Board") unanimously approved the renewal of the management agreement pursuant to which American Century Investment Management, Inc. (the “Advisor”) acts as the investment advisor for the Fund. Under Section 15(c) of the Investment Company Act, contracts for investment advisory services are required to be reviewed, evaluated, and approved by a majority of a fund’s directors/trustees, including a majority of the independent Trustees, each year. The Board regards this annual evaluation and renewal as one of its most important responsibilities.

The independent Trustees have memorialized a statement regarding the relationship between their ongoing obligations to oversee and evaluate the performance of the Advisor and their annual consideration of renewal of the management agreement. In that statement, the independent Trustees noted that their assessment of the Advisor’s performance is an ongoing process that takes place over the entire year and is informed by all of the extensive information that the Board and its committees receive and consider over time. This information, together with the additional materials provided specifically in connection with the review, are central to the Board’s assessment of the Advisor’s performance and its determination whether to renew the Fund’s management agreement.

Prior to its consideration of the renewal of the management agreement, the Board requested and reviewed extensive data and analysis relating to the proposed renewal. This information and analysis was compiled by the Advisor and certain independent providers of evaluation data concerning the Fund and the services provided to the Fund by the Advisor.

In connection with its consideration of the renewal of the management agreement, the Board’s review and evaluation of the services provided by the Advisor included, but was not limited to, the following:

•
the nature, extent, and quality of investment management, shareholder services, and other services provided to the Fund;
•
the wide range of other programs and services the Advisor provides to the Fund and its shareholders on a routine and non-routine basis;
•
the investment performance of the Fund, including data comparing the Fund’s performance to appropriate benchmarks and/or a peer group of other mutual funds with similar investment objectives and strategies;
•
the cost of owning the Fund compared to the cost of owning similar funds;
•
the compliance policies, procedures, and regulatory experience of the Advisor and the Fund’s service providers;
•
financial data showing the cost of services provided to the Fund, the profitability of the Fund to the Advisor, and the overall profitability of the Advisor;
•
strategic plans of the Advisor;
•
any economies of scale associated with the Advisor’s management of the Fund and other accounts;
•
services provided and charges to the Advisor’s other investment management clients;
•
acquired fund fees and expenses;
•
payments and practices in connection with financial intermediaries holding shares of the Fund and the services provided by intermediaries in connection therewith; and
•
any collateral benefits derived by the Advisor from the management of the Fund.

In keeping with its practice, the Board held two in-person meetings to review and discuss the information provided in response to their request and held active discussions with the Advisor

45


regarding the renewal of the management agreement. The independent Trustees had the benefit of the advice of their independent counsel throughout the process.

Factors Considered

The Trustees considered all of the information provided by the Advisor, the independent data providers, and the independent Trustees’ independent counsel in connection with the approval. They determined that the information was sufficient for them to evaluate the management agreement for the Fund. In connection with their review, the Trustees did not identify any single factor as being all-important or controlling and each Trustee may have attributed different levels of importance to different factors. In deciding to renew the management agreement, the Board based its decision on a number of factors, including the following:

Nature, Extent and Quality of Services — Generally. Under the management agreement, the Advisor is responsible for providing or arranging for all services necessary for the operation of the Fund. The Board noted that the Advisor provides or arranges at its own expense a wide variety of services including:

•
constructing and designing the Fund
•
portfolio research and security selection
•
initial capitalization/funding
•
securities trading
•
Fund administration
•
custody of Fund assets
•
daily valuation of the Fund’s portfolio
•
shareholder servicing and transfer agency, including shareholder confirmations, recordkeeping, and communications
•
legal services (except the independent Trustees’ counsel)
•
regulatory and portfolio compliance
•
financial reporting
•
marketing and distribution (except amounts paid by the Fund under Rule 12b-1 plans)

The Board noted that many of these services have expanded over time in terms of both quantity and complexity in response to shareholder demands, competition in the industry, changing distribution channels, and the changing regulatory environment.

Investment Management Services. The nature of the investment management services provided to the Fund is quite complex and allows Fund shareholders access to professional money management, instant diversification of their investments within an asset class, the opportunity to easily diversify among asset classes by investing in or exchanging among various American Century Investments funds, and liquidity. In evaluating investment performance, the Board expects the Advisor to manage the Fund in accordance with its investment objectives and approved strategies. Further, the Trustees recognize that the Advisor has an obligation to seek the best execution of fund trades. In providing these services, the Advisor utilizes teams of investment professionals (portfolio managers, analysts, research assistants, and securities traders) who require extensive information technology, research, training, compliance, and other systems to conduct their business. The Board, directly and through its Portfolio Committee, regularly reviews investment performance information for the Fund, together with comparative information for appropriate benchmarks and/or peer groups of similarly-managed funds, over different time horizons. The Trustees also review investment performance information during the management agreement renewal process. If performance concerns are identified, the Fund receives special reviews until performance improves, during which the Board discusses with the Advisor the reasons for such results (e.g., market conditions, security selection) and any efforts being undertaken to improve performance. The Fund’s performance was above its benchmark for the ten-year period and below its benchmark for the one-, three-, and five-year periods reviewed by the

46


Board. The Board found the investment management services provided by the Advisor to the Fund to be satisfactory and consistent with the management agreement.

Shareholder and Other Services. Under the management agreement, the Advisor provides the Fund with a comprehensive package of transfer agency, shareholder, and other services. The Board, directly and through various committees of the Board, regularly reviews reports and evaluations of such services at its regular meetings. These reports include, but are not limited to, information regarding the operational efficiency and accuracy of the shareholder and transfer agency services provided, staffing levels, shareholder satisfaction, technology support (including cyber security), new products and services offered to Fund shareholders, securities trading activities, portfolio valuation services, auditing services, and legal and operational compliance activities. The Board found the services provided by the Advisor to the Fund under the management agreement to be competitive and of high quality.

Costs of Services and Profitability. The Advisor provides detailed information concerning its cost of providing various services to the Fund, its profitability in managing the Fund, its overall profitability, and its financial condition. The Trustees have reviewed with the Advisor the methodology used to prepare this financial information. This information is considered in evaluating the Advisor’s financial condition, its ability to continue to provide services under the management agreement, and the reasonableness of the current management fee. The Board concluded that the Advisor’s profits were reasonable in light of the services provided to the Fund.

Ethics. The Board generally considers the Advisor’s commitment to providing quality services to shareholders and to conducting its business ethically. They noted that the Advisor’s practices generally meet or exceed industry best practices.

Economies of Scale. The Board also reviewed information provided by the Advisor regarding the possible existence of economies of scale in connection with the management of the Fund. The Board concluded that economies of scale are difficult to measure and predict with precision, especially on a fund-by-fund basis. The Board concluded that the Advisor is appropriately sharing economies of scale through its competitive fee structure, offering competitive fees from fund inception, and through reinvestment in its business to provide shareholders enhanced and expanded services.

Comparison to Other Funds’ Fees. The management agreement provides that the Fund pays the Advisor a single, all-inclusive (or unified) management fee for providing all services necessary for the management and operation of the Fund, other than brokerage expenses, expenses attributable to short sales, taxes, interest, extraordinary expenses, fees and expenses of the Fund’s independent Trustees (including their independent legal counsel), and expenses incurred in connection with the provision of shareholder services and distribution services under a plan adopted pursuant to Rule 12b-1 under the Investment Company Act. Under the unified fee structure, the Advisor is responsible for providing all investment advisory, custody, audit, administrative, compliance, recordkeeping, marketing, and shareholder services, or arranging and supervising third parties to provide such services. By contrast, most other funds are charged a variety of fees, including an investment advisory fee, a transfer agency fee, an administrative fee, distribution charges, and other expenses. Other than their investment advisory fees and any applicable Rule 12b-1 distribution fees, all other components of the total fees charged by these other funds may be increased without shareholder approval. The Board believes the unified fee structure is a benefit to Fund shareholders because it clearly discloses to shareholders the cost of owning Fund shares, and, since the unified fee cannot be increased without a vote of Fund shareholders, it shifts to the Advisor the risk of increased costs of operating the Fund and provides a direct incentive to minimize administrative inefficiencies. Part of the Board’s analysis of fee levels involves reviewing certain evaluative data compiled by an independent provider and comparing the Fund’s unified fee to the total expense ratio of peer funds. The unified fee charged to shareholders of the Fund was below the median of the total expense ratios of the Fund’s peer group. The Board

47


concluded that the management fee paid by the Fund to the Advisor under the management agreement is reasonable in light of the services provided to the Fund.

Comparison to Fees and Services Provided to Other Clients of the Advisor. The Board also requested and received information from the Advisor concerning the nature of the services, fees, costs, and profitability of its advisory services to advisory clients other than the Fund. They observed that these varying types of client accounts require different services and involve different regulatory and entrepreneurial risks than the management of the Fund. The Board analyzed this information and concluded that the fees charged and services provided to the Fund were reasonable by comparison.

Payments to Intermediaries. The Trustees also requested and received a description of payments made to intermediaries by the Fund and the Advisor and services provided by intermediaries. These payments include various payments made by the Fund or the Advisor to different types of intermediaries and recordkeepers for distribution and service activities provided for the Fund. The Trustees reviewed such information and received representations from the Advisor that all such payments by the Fund were made pursuant to the Fund’s Rule 12b-1 Plan and that all such payments by the Advisor were made from the Advisor’s resources and reasonable profits. The Board found such payments to be reasonable in scope and purpose.

Collateral or “Fall-Out” Benefits Derived by the Advisor. The Board considered the existence of collateral benefits the Advisor may receive as a result of its relationship with the Fund. The Board noted that the Advisor’s primary business is managing mutual funds and it generally does not use fund or shareholder information to generate profits in other lines of business, and therefore does not derive any significant collateral benefits from them. The Board noted that the Advisor may receive proprietary research from broker-dealers that execute fund portfolio transactions. The Board also determined that the Advisor is able to provide investment management services to certain clients other than the Fund, at least in part, due to its existing infrastructure built to serve the fund complex. The Board noted that the assets of those other accounts are, where applicable, included with the assets of the Fund to determine breakpoints in the management fee schedule.

Existing Relationship. The Board also considered whether there was any reason for not continuing the existing arrangement with the Advisor. In this regard, the Board was mindful of the potential disruptions of the Fund’s operations and various risks, uncertainties, and other effects that could occur as a result of a decision not to continue such relationship. In particular, the Board recognized that most shareholders have invested in the Fund on the strength of the Advisor’s industry standing and reputation and in the expectation that the Advisor will have a continuing role in providing advisory services to the Fund.

Conclusion of the Trustees. As a result of this process, the Board, including all of the independent Trustees and assisted by the advice of independent legal counsel, taking into account all of the factors discussed above and the information provided by the Advisor and others in connection with its review and throughout the year, concluded that the management agreement between the Fund and the Advisor is fair and reasonable in light of the services provided and should be renewed.



48


Additional Information
 
Retirement Account Information

As required by law, distributions you receive from certain retirement accounts are subject to federal income tax withholding, unless you elect not to have withholding apply*. Tax will be withheld on the total amount withdrawn even though you may be receiving amounts that are not subject to withholding, such as nondeductible contributions. In such case, excess amounts of withholding could occur. You may adjust your withholding election so that a greater or lesser amount will be withheld.

If you don’t want us to withhold on this amount, you must notify us to not withhold the federal income tax. You may notify us in writing or in certain situations by telephone or through other electronic means. For systematic withdrawals, your withholding election will remain in effect until revoked or changed by filing a new election. You have the right to revoke your election at any time and change your withholding percentage for future distributions.

Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.

State tax will be withheld if, at the time of your distribution, your address is within one of the mandatory withholding states and you have federal income tax withheld (or as otherwise required by state law). State taxes will be withheld from your distribution in accordance with the respective state rules.

*Some 403(b), 457 and qualified retirement plan distributions may be subject to 20% mandatory withholding, as they are subject to special tax and withholding rules.  Your plan administrator or plan sponsor is required to provide you with a special tax notice explaining those rules at the time you request a distribution.  If applicable, federal and/or state taxes may be withheld from your distribution amount.


Proxy Voting Policies
 
Descriptions of the principles and policies that the fund's investment advisor uses in exercising the voting rights associated with the securities purchased and/or held by the fund are available without charge, upon request, by calling 1-800-345-2021 or visiting the "About Us" page of American Century Investments’ website at americancentury.com. A description of the policies is also available on the Securities and Exchange Commission’s website at sec.gov. Information regarding how the investment advisor voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the "About Us" page at americancentury.com. It is also available at sec.gov.
 

Quarterly Portfolio Disclosure

The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q or as an exhibit to its reports on Form N-PORT. The fund’s Forms N-Q and Form N-PORT reports are available on the SEC’s website at sec.gov. The fund also makes its complete schedule of portfolio holdings for the most recent quarter of its fiscal year available on its website at americancentury.com and, upon request, by calling 1-800-345-2021.

49


Other Tax Information

The following information is provided pursuant to provisions of the Internal Revenue Code.

The fund designates $43,469,219 as exempt interest dividends for the fiscal year ended August 31, 2019.


































50


Notes

51


Notes

52


Notes

53


Notes

54


Notes

55


Notes



56






acihorizblkd27.jpg
 
 
 
 
Contact Us
americancentury.com
 
Automated Information Line
1-800-345-8765
 
Investor Services Representative
1-800-345-2021
or 816-531-5575
 
Investors Using Advisors
1-800-378-9878
 
Business, Not-For-Profit, Employer-Sponsored Retirement Plans
1-800-345-3533
 
Banks and Trust Companies, Broker-Dealers, Financial Professionals, Insurance Companies
1-800-345-6488
 
Telecommunications Relay Service for the Deaf
711
 
 
 
 
American Century California Tax-Free and Municipal Funds
 
 
 
 
Investment Advisor:
American Century Investment Management, Inc.
Kansas City, Missouri
 
 
 
 
This report and the statements it contains are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus.
 
 
 
 
©2019 American Century Proprietary Holdings, Inc. All rights reserved.
CL-ANN-90325 1910
 






acihorizblkd27.jpg
                  

 
 
 
Annual Report
 
 
 
August 31, 2019
 
 
 
California Intermediate-Term Tax-Free Bond Fund
 
Investor Class (BCITX)
 
I Class (BCTIX)
 
Y Class (ACYTX)
 
A Class (BCIAX)
 
C Class (BCIYX)























Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the fund’s shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the fund or your financial intermediary electronically by calling or sending an email request to your appropriate contacts as listed on the back cover of this report.

You may elect to receive all future reports in paper free of charge. You can inform the fund or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by calling or sending an email request to your appropriate contacts as listed on the back cover of this report. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.







Table of Contents
President’s Letter
2

Performance
3

Portfolio Commentary

Fund Characteristics

Shareholder Fee Example

Schedule of Investments

Statement of Assets and Liabilities

Statement of Operations

Statement of Changes in Net Assets

Notes to Financial Statements

Financial Highlights

Report of Independent Registered Public Accounting Firm

Management

Approval of Management Agreement

Additional Information






















Any opinions expressed in this report reflect those of the author as of the date of the report, and do not necessarily represent the opinions of American Century Investments® or any other person in the American Century Investments organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century Investments disclaims any responsibility to update such opinions. These opinions may not be relied upon as investment advice and, because investment decisions made by American Century Investments funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century Investments fund. Security examples are used for representational purposes only and are not intended as recommendations to purchase or sell securities. Performance information for comparative indices and securities is provided to American Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.



President’s Letter

jthomasrev0514a66.jpg Jonathan Thomas

Dear Investor:

Thank you for reviewing this annual report for the period ended August 31, 2019. Annual reports help convey important information about fund returns, including market factors that affected performance during the reporting period. For additional updated investment and market insights, please visit our website, americancentury.com.

Falling Yields, Robust Demand Supported Muni Gains

After struggling in late 2018, municipal bonds (munis) rallied through the first eight months of 2019 to deliver solid performance for the entire 12-month reporting period. Within the asset class, high-yield munis generally outperformed investment-grade munis, and California munis modestly underperformed national munis, according to Bloomberg.

Early in the reporting period, U.S. fixed-income investors faced a challenging backdrop of healthy economic growth and rising interest rates. The Federal Reserve (Fed) raised rates in September, which helped keep U.S. Treasury and muni yields on an upward trajectory through early November. After that, yields plunged on moderating U.S. economic growth, heightened trade tensions and mounting stock market volatility. Along with implementing another rate hike in December, the Fed delivered an economic outlook that investors feared was too hawkish. This also drove yields lower.

Markets stabilized in early 2019. Investors’ concerns about U.S. growth eased, and the Fed changed course. The central bank ended its rate-hike campaign amid slowing global growth and muted inflation. The Fed’s increasingly dovish tone, which led to a July rate cut, and ongoing global economic uncertainties helped keep Treasury yields on a downward path through August.

In addition to benefiting from declining yields, munis advanced on stable credit fundamentals and favorable supply/demand dynamics. Demand was particularly robust in California and other high-tax states, where federal legislation capping state and local tax deductions continued to boost investor interest in munis.

We believe state and local finances in California and across the country should remain stable, providing continued support for munis. We also expect the supply/demand backdrop to remain favorable. Meanwhile, volatility, economic data, central bank policy and other factors will continue to affect the markets. These influences underscore the importance of using professionally managed portfolios in pursuit of investment goals. We appreciate your continued trust and confidence in us.

Sincerely,
image48a16.jpg
Jonathan Thomas
President and Chief Executive Officer
American Century Investments

2


Performance
 
Total Returns as of August 31, 2019
 
 
 
Average Annual Returns
 
 
Ticker
Symbol
1 year
5 years
10 years
Since
Inception
Inception
Date
Investor Class
BCITX
7.29%
2.99%
3.92%
—
11/9/83
S&P Intermediate Term California AMT-Free Municipal Bond Index
—
6.91%
3.00%
—
—
—
Bloomberg Barclays 7 Year Municipal Bond Index
—
8.28%
3.24%
4.09%
—
—
I Class
BCTIX
7.59%
3.22%
—
3.94%
3/1/10
Y Class
ACYTX
7.53%
—
—
4.45%
4/10/17
A Class
BCIAX
 
 
 
 
3/1/10
No sales charge
 
7.11%
2.75%
—
3.48%
 
With sales charge
 
2.30%
1.82%
—
2.98%
 
C Class
BCIYX
6.22%
1.97%
—
2.71%
3/1/10
Average annual returns since inception are presented when ten years of performance history is not available.

Returns for the Bloomberg Barclays 7 Year Municipal Bond Index are shown to cover the 10 year period because the S&P Intermediate Term California AMT-Free Municipal Bond Index total return data became available as of Just 30, 2010.

Sales charges include initial sales charges and contingent deferred sales charges (CDSCs), as applicable. A Class shares have a 4.50% maximum initial sales charge and may be subject to a maximum CDSC of 1.00%. C Class shares redeemed within 12 months of purchase are subject to a maximum CDSC of 1.00%. The SEC requires that mutual funds provide performance information net of maximum sales charges in all cases where charges could be applied.
















Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Total returns for periods less than one year are not annualized. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. For additional information about the fund, please consult the prospectus.

3


Growth of $10,000 Over 10 Years
$10,000 investment made August 31, 2009
Performance for other share classes will vary due to differences in fee structure.
chart-2cf03c375b225920c01.jpg
Value on August 31, 2019
 
Investor Class — $14,693
 
 
Bloomberg Barclays 7 Year Municipal Bond Index — $14,940
 
Since S&P Intermediate Term California AMT-Free Municipal Bond Index total return data is only available from June 2010, it is not included in the line chart.
Total Annual Fund Operating Expenses
Investor Class
I Class
Y Class
A Class
C Class
0.47%
0.27%
0.24%
0.72%
1.47%
The total annual fund operating expenses shown is as stated in the fund’s prospectus current as of the date of this report. The prospectus may vary from the expense ratio shown elsewhere in this report because it is based on a different time period, includes acquired fund fees and expenses, and, if applicable, does not include fee waivers or expense reimbursements.












Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Total returns for periods less than one year are not annualized. Investment return and principal value will fluctuate, and redemption value may be more or less than original cost. Data assumes reinvestment of dividends and capital gains, and none of the charts reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. For additional information about the fund, please consult the prospectus.

4


Portfolio Commentary

Portfolio Managers: Joseph Gotelli, Alan Kruss and Steven Permut

Performance Summary

California Intermediate-Term Tax-Free Bond returned 7.29%* for the 12 months ended August 31, 2019. By comparison, the S&P Intermediate Term California AMT-Free Municipal Bond Index returned 6.91%. Fund returns reflect operating expenses, while index returns do not.

Healthy municipal bond (muni) market fundamentals and favorable supply/demand trends helped the broad muni market advance and deliver strong results for the 12-month period. For the portfolio, duration positioning, sector allocation and security selection contributed to the outperformance versus the index.

Yield, Supply/Demand Backdrops Boosted Munis

Early in the period, robust economic growth, rising inflation and a hawkish Federal Reserve (Fed) drove Treasury yields higher and bond prices lower. But this all came to a halt in late 2018. A slowing global growth outlook and U.S.-China trade tensions triggered severe volatility in the equity markets and drove investors into the perceived safe-haven U.S. Treasury market. This dramatic shift in sentiment drove Treasury yields sharply lower. In early 2019, the Fed abruptly halted its rate-tightening campaign and adopted a more dovish stance regarding interest rate policy, which eventually led to a quarter-point interest rate cut in July.

Meanwhile, the tax advantages of munis and healthy muni market fundamentals continued to attract investors to the asset class. At the same time, muni supply continued to decline. This dynamic, along with falling yields, drove robust returns for munis for the 12-month period. Despite their strong performance, though, munis were unable to keep pace with the rallying Treasury market. Within the muni sector, revenue bonds generally outperformed general obligation (GO) bonds, and California munis modestly underperformed national munis, according to Barclays. Lower-quality munis outperformed their higher-quality counterparts, as investor demand for yield helped drive gains for riskier securities.

Broad Fiscal Backdrop Remained Healthy; Credit Fundamentals Were Stable

State and local finances in California and across the U.S. remained relatively healthy. State revenues generally increased and continued to outperform budgets, largely due to the effects of federal tax reform and solid U.S. economic growth. Many states used their stronger-than-expected revenues to boost reserves.

In general, muni credit-quality trends in California were stable. Muni defaults were rare, and muni credit-rating upgrades slightly outpaced downgrades. Mounting legacy costs related to pensions and retiree health care obligations may continue to pressure select isolated credits, but we do not believe these issues are indicative of a systemic marketwide problem. 

Duration Positioning, Sector Allocation, Security Selection Boosted Results

We maintained a longer duration than the index, which was a top contributor to relative performance in the declining interest rate environment.



* All fund returns referenced in this commentary are for Investor Class shares. Performance for other share classes will vary due to differences in fee structure; when Investor Class performance exceeds that of the index, other share classes may not. See page 3 for returns for all share classes.

5


Sector allocation was another strong contributor to performance. We continued to overweight munis with credit ratings of A and BBB, the two lowest-quality categories in the investment-grade universe. We also held an out-of-index position in high-yield munis. This strategy aided relative results, as investor demand for yield drove gains in the riskier segments of the muni market. In addition, overweight positions in special tax securities and corporate-backed munis, an underweight to state GO bonds and an out-of-index position in hospitals added value.

Security selection also contributed. Specifically, our selections within the water and sewer, utility and toll facilities sectors aided performance. Our selections among special tax securities weighed on overall results and offset some of the positive security selection effects.

Portfolio Positioning

We expect demand for tax-exempt munis to remain healthy, particularly in high-tax states, such as California, where the elimination and reduction of certain federal tax deductions has increased the attractiveness of munis. This dynamic should continue to provide broad support to the muni market.

Given our outlook for moderating economic growth, continued low interest rates and stable credit fundamentals, we have a modest bias toward lower-quality investment-grade securities (those with BBB credit ratings). We continue to favor securities in the higher education, transportation and hospital sectors. As always, fundamental credit research will drive our investment decisions.





6


Fund Characteristics
 
August 31, 2019
Portfolio at a Glance
 
Weighted Average Life to Maturity
9.4 years
Average Duration (Modified)
4.8 years
 
 
Top Five Sectors
% of fund investments
Special Tax
15%
Hospital
13%
General Obligation (GO) - Local
10%
Water & Sewer
9%
Lease Revenue
7%
 
 
Types of Investments in Portfolio  
% of net assets
Municipal Securities
99.6%
Other Assets and Liabilities
0.4%

7


Shareholder Fee Example
 
Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption/exchange fees; and (2) ongoing costs, including management 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 your fund and to compare these costs with the ongoing cost of investing in other mutual funds.

The example is based on an investment of $1,000 made at the beginning of the period and held for the entire period from March 1, 2019 to August 31, 2019.

Actual Expenses

The table provides information about actual account values and actual expenses for each class. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. First, identify the share class you own. Then 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 under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

If you hold Investor Class shares of any American Century Investments fund, or I Class shares of the American Century Diversified Bond Fund, in an American Century Investments account (i.e., not a financial intermediary or retirement plan account), American Century Investments may charge you a $12.50 semiannual account maintenance fee if the value of those shares is less than $10,000. We will redeem shares automatically in one of your accounts to pay the $12.50 fee. In determining your total eligible investment amount, we will include your investments in all personal accounts (including American Century Investments Brokerage accounts) registered under your Social Security number. Personal accounts include individual accounts, joint accounts, UGMA/UTMA accounts, personal trusts, Coverdell Education Savings Accounts and IRAs (including traditional, Roth, Rollover, SEP-, SARSEP- and SIMPLE-IRAs), and certain other retirement accounts. If you have only business, business retirement, employer-sponsored or American Century Investments Brokerage accounts, you are currently not subject to this fee. If you are subject to the Account Maintenance Fee, your account value could be reduced by the fee amount.

Hypothetical Example for Comparison Purposes

The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund’s share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption/exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

8




Beginning
Account Value
3/1/19
Ending
Account Value
8/31/19
Expenses Paid
During Period(1) 
3/1/19 - 8/31/19
 
Annualized
Expense Ratio(1)
Actual
 
 
 
 
Investor Class
$1,000
$1,053.80
$2.43
0.47%
I Class
$1,000
$1,054.80
$1.40
0.27%
Y Class
$1,000
$1,055.00
$1.24
0.24%
A Class
$1,000
$1,052.40
$3.72
0.72%
C Class
$1,000
$1,048.50
$7.59
1.47%
Hypothetical
 
 
 
 
Investor Class
$1,000
$1,022.84
$2.40
0.47%
I Class
$1,000
$1,023.84
$1.38
0.27%
Y Class
$1,000
$1,024.00
$1.22
0.24%
A Class
$1,000
$1,021.58
$3.67
0.72%
C Class
$1,000
$1,017.80
$7.48
1.47%
(1)
Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 184, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses.

9


Schedule of Investments

AUGUST 31, 2019
 
Principal Amount
Value
MUNICIPAL SECURITIES — 99.6%
 
 
California — 99.2%
 
 
91 Express Lanes Toll Road Rev., 5.00%, 8/15/24
$
1,000,000

$
1,159,830

91 Express Lanes Toll Road Rev., 5.00%, 8/15/25
1,000,000

1,157,300

ABAG Finance Authority for Nonprofit Corps. Rev., (Sharp Healthcare Obligated Group), 6.00%, 8/1/30
3,500,000

3,827,110

ABAG Finance Authority for Nonprofit Corps. Rev., (Sharp Healthcare Obligated Group), 5.00%, 8/1/33
1,450,000

1,647,156

ABAG Finance Authority for Nonprofit Corps. Special Tax, 5.00%, 9/2/28 (AGM)
2,625,000

3,360,079

ABAG Finance Authority for Nonprofit Corps. Special Tax, 5.00%, 9/2/31 (AGM)
1,400,000

1,758,232

ABAG Finance Authority for Nonprofit Corps. Special Tax, 5.00%, 9/2/32 (AGM)
495,000

619,275

Alameda Corridor Transportation Authority Rev., 5.00%, 10/1/20
3,010,000

3,140,393

Alameda Corridor Transportation Authority Rev., 5.00%, 10/1/22
1,000,000

1,106,440

Alameda Corridor Transportation Authority Rev., 5.00%, 10/1/24
4,000,000

4,630,000

Alameda Corridor Transportation Authority Rev., 5.00%, 10/1/34
1,500,000

1,791,645

Alameda Corridor Transportation Authority Rev., 5.00%, 10/1/35
3,000,000

3,574,620

Alameda Corridor Transportation Authority Rev., 5.00%, 10/1/36
2,000,000

2,377,660

Alameda Corridor Transportation Authority Rev., Capital Appreciation, 0.00%, 10/1/32 (NATL)(1)
1,000,000

731,160

Alameda Corridor Transportation Authority Rev., Capital Appreciation, 0.00%, 10/1/35 (NATL)(1)
12,750,000

8,424,052

Alum Rock Union Elementary School District GO, 6.00%, 8/1/39
2,500,000

2,930,025

Anaheim Public Financing Authority Rev., 5.375%, 4/1/21, Prerefunded at 100% of Par(2)
1,000,000

1,071,620

Anaheim Public Financing Authority Rev., 5.00%, 10/1/22, Prerefunded at 100% of Par(2)
1,200,000

1,353,168

Anaheim Public Financing Authority Rev., 5.00%, 10/1/22, Prerefunded at 100% of Par(2)
2,275,000

2,565,381

Anaheim Public Financing Authority Rev., 5.00%, 5/1/25
1,000,000

1,187,970

Anaheim Public Financing Authority Rev., 5.00%, 5/1/28
1,100,000

1,301,234

Anaheim Public Financing Authority Rev., 5.00%, 5/1/29
1,250,000

1,474,300

Anaheim Public Financing Authority Rev., 5.00%, 5/1/34
1,360,000

1,581,816

Anaheim Public Financing Authority Rev., 5.00%, 5/1/39
1,550,000

1,806,261

Anaheim Public Financing Authority Rev., (Anaheim), 5.00%, 9/1/30 (BAM)
2,500,000

3,353,000

Anaheim Public Financing Authority Rev., (Anaheim), 5.00%, 9/1/31 (BAM)
1,745,000

2,321,164

Anaheim Public Financing Authority Rev., (Anaheim), 5.00%, 9/1/32 (BAM)
1,745,000

2,306,593

Anaheim Public Financing Authority Rev., (Anaheim), 5.00%, 9/1/33 (BAM)
1,665,000

2,191,723

Anaheim Public Financing Authority Rev., (Anaheim), 5.00%, 9/1/34 (BAM)
1,800,000

2,257,128

Anaheim Public Financing Authority Rev., (Anaheim), 5.00%, 9/1/35 (BAM)
2,105,000

2,630,618


10


 
Principal Amount
Value
Anaheim Public Financing Authority Rev., (Anaheim), 5.00%, 9/1/36 (BAM)
$
4,190,000

$
5,219,651

Atwater Wastewater Rev., 5.00%, 5/1/23 (AGM)
510,000

580,717

Atwater Wastewater Rev., 5.00%, 5/1/25 (AGM)
745,000

900,072

Atwater Wastewater Rev., 5.00%, 5/1/27 (AGM)
415,000

528,054

Atwater Wastewater Rev., 5.00%, 5/1/29 (AGM)
700,000

884,541

Atwater Wastewater Rev., 5.00%, 5/1/32 (AGM)
895,000

1,112,431

Bay Area Toll Authority Rev., 5.00%, 4/1/24
1,500,000

1,656,780

Bay Area Toll Authority Rev., 5.00%, 4/1/25
3,500,000

3,864,875

Bay Area Toll Authority Rev., 5.00%, 4/1/28
7,185,000

7,918,588

Bay Area Toll Authority Rev., 4.00%, 4/1/29
3,000,000

3,621,540

Bay Area Toll Authority Rev., VRDN, 2.00%, 4/1/21
2,000,000

2,016,380

Bay Area Toll Authority Rev., VRDN, 2.45%, (MUNIPSA plus 1.10%), 4/1/24
3,750,000

3,861,562

Bay Area Toll Authority Rev., VRDN, 2.625%, 4/1/26
15,000,000

16,268,850

Bay Area Toll Authority Rev., VRDN, 2.60%, (MUNIPSA plus 1.25%), 4/1/27
4,000,000

4,186,080

Brea Redevelopment Agency Tax Allocation, Capital Appreciation, VRN, 0.00%, 8/1/33
1,500,000

1,565,250

Brea Redevelopment Agency Tax Allocation, Capital Appreciation, VRN, 0.00%, 8/1/34
1,785,000

1,856,561

California Community College Financing Authority Rev., (NCCD-Orange Coast Properties LLC), 5.00%, 5/1/28
275,000

341,866

California Community College Financing Authority Rev., (NCCD-Orange Coast Properties LLC), 5.00%, 5/1/29
800,000

989,704

California Community College Financing Authority Rev., (NCCD-Orange Coast Properties LLC), 5.00%, 5/1/32
875,000

1,066,048

California Community College Financing Authority Rev., (NCCD-Orange Coast Properties LLC), 5.00%, 5/1/33
600,000

728,766

California Community College Financing Authority Rev., (NCCD-Orange Coast Properties LLC), 5.00%, 5/1/35
1,540,000

1,859,535

California County Tobacco Securitization Agency Rev., (Los Angeles County Securitization Corp.), VRN, 5.45%, 6/1/28
4,000,000

4,055,880

California Educational Facilities Authority Rev., 5.00%, 10/1/21(2)
365,000

395,773

California Educational Facilities Authority Rev., 5.00%, 10/1/21(2)
385,000

417,875

California Educational Facilities Authority Rev., (Chapman University), 5.00%, 4/1/21
750,000

797,730

California Educational Facilities Authority Rev., (Chapman University), 5.00%, 4/1/24
930,000

1,095,345

California Educational Facilities Authority Rev., (Chapman University), 5.00%, 4/1/31 (GA: Brandman University)
1,455,000

1,541,776

California Educational Facilities Authority Rev., (Claremont Mckenna College), 5.00%, 1/1/32
750,000

919,890

California Educational Facilities Authority Rev., (Loma Linda University), 5.00%, 4/1/25
800,000

963,680

California Educational Facilities Authority Rev., (Loma Linda University), 5.00%, 4/1/27
300,000

381,006

California Educational Facilities Authority Rev., (Loma Linda University), 5.00%, 4/1/28
800,000

1,011,392

California Educational Facilities Authority Rev., (Loyola Marymount University), 5.00%, 10/1/30
1,365,000

1,369,682

California Educational Facilities Authority Rev., (Loyola Marymount University), 5.00%, 10/1/34
490,000

624,260

California Educational Facilities Authority Rev., (Loyola Marymount University), 5.00%, 10/1/35
625,000

793,856


11


 
Principal Amount
Value
California Educational Facilities Authority Rev., (Loyola Marymount University), 5.00%, 10/1/37
$
745,000

$
939,795

California Educational Facilities Authority Rev., (University of Southern California), 5.00%, 10/1/25
1,875,000

2,334,994

California Educational Facilities Authority Rev., (University of the Pacific), 5.00%, 11/1/33
1,500,000

1,812,150

California Health Facilities Financing Authority Rev., (Cedars-Sinai Medical Center), 5.00%, 11/15/22
3,000,000

3,397,050

California Health Facilities Financing Authority Rev., (Cedars-Sinai Medical Center), 5.00%, 11/15/23
2,150,000

2,518,811

California Health Facilities Financing Authority Rev., (Cedars-Sinai Medical Center), 5.00%, 11/15/24
1,450,000

1,754,920

California Health Facilities Financing Authority Rev., (Cedars-Sinai Medical Center), 5.00%, 11/15/26
3,000,000

3,737,760

California Health Facilities Financing Authority Rev., (Cedars-Sinai Medical Center), 5.00%, 11/15/27
6,000,000

7,452,240

California Health Facilities Financing Authority Rev., (Cedars-Sinai Medical Center), 5.00%, 11/15/31
2,700,000

3,305,961

California Health Facilities Financing Authority Rev., (Cedars-Sinai Medical Center), 5.00%, 11/15/32
400,000

491,236

California Health Facilities Financing Authority Rev., (Children's Hospital of Orange County Obligated Group), 6.25%, 11/1/29
(GA: Children's Healthcare of California)
5,000,000

5,042,050

California Health Facilities Financing Authority Rev., (Children's Hospital of Orange County Obligated Group), 5.00%, 11/1/30
(GA: Children's Healthcare of California)
700,000

942,410

California Health Facilities Financing Authority Rev., (Children's Hospital of Orange County Obligated Group), 5.00%, 11/1/31
(GA: Children's Healthcare of California)
1,000,000

1,337,950

California Health Facilities Financing Authority Rev., (Children's Hospital of Orange County Obligated Group), 5.00%, 11/1/32
(GA: Children's Healthcare of California)
1,200,000

1,595,448

California Health Facilities Financing Authority Rev., (Children's Hospital of Orange County Obligated Group), 5.00%, 11/1/33
(GA: Children's Healthcare of California)
1,300,000

1,719,354

California Health Facilities Financing Authority Rev., (El Camino Hospital), 5.00%, 2/1/24
1,200,000

1,409,172

California Health Facilities Financing Authority Rev., (El Camino Hospital), 5.00%, 2/1/25
500,000

606,360

California Health Facilities Financing Authority Rev., (Kaiser Credit Group), VRDN, 5.00%, 11/1/22
2,200,000

2,469,346

California Health Facilities Financing Authority Rev., (Lucile Salter Packard Children's Hospital at Stanford Obligated Group), 5.00%, 8/15/25
5,855,000

6,523,055

California Health Facilities Financing Authority Rev., (Providence St. Joseph Health Obligated Group), 5.00%, 7/1/37
1,070,000

1,209,485

California Health Facilities Financing Authority Rev., (Providence St. Joseph Health Obligated Group), VRDN, 2.00%, 10/1/25
3,500,000

3,659,775

California Health Facilities Financing Authority Rev., (Stanford Health Care Obligated Group), 5.00%, 11/15/20, Prerefunded at 100% of Par(2)
2,000,000

2,096,660

California Health Facilities Financing Authority Rev., (Stanford Health Care Obligated Group), 5.00%, 11/15/22
1,000,000

1,128,290

California Health Facilities Financing Authority Rev., (Stanford Health Care Obligated Group), 5.00%, 11/15/25
2,500,000

3,111,225

California Health Facilities Financing Authority Rev., (Sutter Health Obligated Group), 6.00%, 8/15/20, Prerefunded at 100% of Par(2)
2,500,000

2,619,250

California Health Facilities Financing Authority Rev., (Sutter Health Obligated Group), 5.00%, 8/15/22
1,650,000

1,782,924


12


 
Principal Amount
Value
California Health Facilities Financing Authority Rev., (Sutter Health Obligated Group), 5.25%, 8/15/22
$
2,830,000

$
2,896,760

California Health Facilities Financing Authority Rev., (Sutter Health Obligated Group), 5.00%, 11/15/22
2,250,000

2,542,455

California Health Facilities Financing Authority Rev., (Sutter Health Obligated Group), 5.00%, 11/15/26
1,500,000

1,920,480

California Health Facilities Financing Authority Rev., (Sutter Health Obligated Group), 5.00%, 11/15/29
2,000,000

2,466,000

California Health Facilities Financing Authority Rev., (Sutter Health Obligated Group), 5.00%, 11/15/30
1,750,000

2,148,965

California Health Facilities Financing Authority Rev., (Sutter Health Obligated Group), 5.00%, 11/15/31
1,500,000

1,835,640

California Health Facilities Financing Authority Rev., (Sutter Health Obligated Group), 5.00%, 11/15/32
2,000,000

2,567,680

California Health Facilities Financing Authority Rev., (Sutter Health Obligated Group), 5.00%, 11/15/38
5,890,000

7,359,496

California Housing Finance Rev., 4.25%, 1/15/35
3,325,000

3,982,419

California Infrastructure & Economic Development Bank Rev., (Academy of Motion Picture Arts and Sciences Obligated Group), 5.00%, 11/1/27
1,010,000

1,173,145

California Infrastructure & Economic Development Bank Rev., (Academy of Motion Picture Arts and Sciences Obligated Group), 5.00%, 11/1/28
1,205,000

1,394,836

California Infrastructure & Economic Development Bank Rev., (Academy of Motion Picture Arts and Sciences Obligated Group), 5.00%, 11/1/29
1,000,000

1,154,020

California Infrastructure & Economic Development Bank Rev., (Academy of Motion Picture Arts and Sciences Obligated Group), 5.00%, 11/1/30
1,370,000

1,576,185

California Infrastructure & Economic Development Bank Rev., (California Academy of Sciences), VRDN, 1.88%, (70% of the 1-month LIBOR plus 0.38%), 8/1/21
9,000,000

9,004,950

California Infrastructure & Economic Development Bank Rev., (California Science Center Foundation), 5.00%, 5/1/28
800,000

1,002,560

California Infrastructure & Economic Development Bank Rev., (California Science Center Foundation), 5.00%, 5/1/29
1,250,000

1,560,987

California Infrastructure & Economic Development Bank Rev., (California Science Center Foundation), 5.00%, 5/1/30
1,000,000

1,242,470

California Infrastructure & Economic Development Bank Rev., (California Science Center Foundation), 5.00%, 5/1/31
800,000

989,552

California Infrastructure & Economic Development Bank Rev., (Colburn School), VRDN, 2.35%, (MUNIPSA plus 1.00%), 6/1/20
5,310,000

5,319,292

California Infrastructure & Economic Development Bank Rev., (J. Paul Getty Trust), VRDN, 1.95%, (70% of the 3-month LIBOR plus 0.37%), 4/1/20
3,000,000

3,002,850

California Infrastructure & Economic Development Bank Rev., (Museum Associates), VRDN, 2.13%, (70% of the 1-month LIBOR plus 0.65%), 2/1/21
5,000,000

5,015,100

California Infrastructure & Economic Development Bank Rev., (Segerstrom Center for the Arts), 5.00%, 1/1/25
3,500,000

4,189,080

California Municipal Finance Authority Rev., (Anaheim Electric System Revenue), VRDN, 1.70%, (MUNIPSA plus 0.35%), 12/1/20
3,500,000

3,502,065

California Municipal Finance Authority Rev., (Azusa Pacific University), 8.00%, 4/1/21, Prerefunded at 100% of Par(2)(3)
665,000

738,443

California Municipal Finance Authority Rev., (Azusa Pacific University), 5.00%, 4/1/27
1,165,000

1,324,104

California Municipal Finance Authority Rev., (Azusa Pacific University), 5.00%, 4/1/41
500,000

547,480


13


 
Principal Amount
Value
California Municipal Finance Authority Rev., (California Baptist University), 5.00%, 11/1/36(3)
$
1,000,000

$
1,166,460

California Municipal Finance Authority Rev., (California Lutheran University), 5.00%, 10/1/27
300,000

377,202

California Municipal Finance Authority Rev., (California Lutheran University), 5.00%, 10/1/28
150,000

192,984

California Municipal Finance Authority Rev., (California Lutheran University), 5.00%, 10/1/29
225,000

287,615

California Municipal Finance Authority Rev., (California Lutheran University), 5.00%, 10/1/30
225,000

285,336

California Municipal Finance Authority Rev., (California Lutheran University), 5.00%, 10/1/31
200,000

252,346

California Municipal Finance Authority Rev., (California Lutheran University), 5.00%, 10/1/32
225,000

282,476

California Municipal Finance Authority Rev., (California Lutheran University), 5.00%, 10/1/33
225,000

282,015

California Municipal Finance Authority Rev., (California Lutheran University), 5.00%, 10/1/34
250,000

311,838

California Municipal Finance Authority Rev., (California Lutheran University), 5.00%, 10/1/35
225,000

280,024

California Municipal Finance Authority Rev., (California Lutheran University), 5.00%, 10/1/36
250,000

310,030

California Municipal Finance Authority Rev., (California Lutheran University), 5.00%, 10/1/37
275,000

339,405

California Municipal Finance Authority Rev., (California Lutheran University), 5.00%, 10/1/38
300,000

369,342

California Municipal Finance Authority Rev., (Capital Facilities Development Corp.), 5.00%, 6/1/36
5,650,000

7,143,069

California Municipal Finance Authority Rev., (Capital Facilities Development Corp.), 5.00%, 6/1/38
4,015,000

5,032,120

California Municipal Finance Authority Rev., (Channing House), 5.00%, 5/15/35 (California Mortgage Insurance)
1,000,000

1,232,250

California Municipal Finance Authority Rev., (Chevron Corp.), VRDN, 1.24%, 9/3/19 (GA: Chevron Corp.)
7,800,000

7,800,000

California Municipal Finance Authority Rev., (Chevron USA, Inc.), VRDN, 1.24%, 9/3/19 (GA: Chevron Corp.)
10,415,000

10,415,000

California Municipal Finance Authority Rev., (CHF-Davis I LLC), 5.00%, 5/15/37
8,000,000

9,840,640

California Municipal Finance Authority Rev., (CHF-Riverside I LLC), 5.00%, 5/15/36
750,000

925,530

California Municipal Finance Authority Rev., (CHF-Riverside I LLC), 5.00%, 5/15/37
1,755,000

2,158,790

California Municipal Finance Authority Rev., (CHF-Riverside I LLC), 5.00%, 5/15/39
1,535,000

1,876,860

California Municipal Finance Authority Rev., (CHF-Riverside I LLC), 5.00%, 5/15/40
1,520,000

1,853,959

California Municipal Finance Authority Rev., (Community Hospitals of Central California Obligated Group), 5.00%, 2/1/22
1,000,000

1,092,580

California Municipal Finance Authority Rev., (Community Hospitals of Central California Obligated Group), 5.00%, 2/1/23
520,000

586,919

California Municipal Finance Authority Rev., (Community Hospitals of Central California Obligated Group), 5.00%, 2/1/25
1,925,000

2,306,381

California Municipal Finance Authority Rev., (Community Hospitals of Central California Obligated Group), 5.00%, 2/1/26
1,000,000

1,228,520

California Municipal Finance Authority Rev., (Community Hospitals of Central California Obligated Group), 5.00%, 2/1/27
545,000

651,482

California Municipal Finance Authority Rev., (Community Hospitals of Central California Obligated Group), 5.00%, 2/1/28
735,000

876,348


14


 
Principal Amount
Value
California Municipal Finance Authority Rev., (Community Hospitals of Central California Obligated Group), 5.00%, 2/1/28
$
1,075,000

$
1,334,000

California Municipal Finance Authority Rev., (Community Hospitals of Central California Obligated Group), 5.00%, 2/1/29
1,000,000

1,189,350

California Municipal Finance Authority Rev., (Community Hospitals of Central California Obligated Group), 5.00%, 2/1/29
4,130,000

5,101,748

California Municipal Finance Authority Rev., (Community Hospitals of Central California Obligated Group), 5.00%, 2/1/30
1,000,000

1,228,320

California Municipal Finance Authority Rev., (Community Hospitals of Central California Obligated Group), 5.00%, 2/1/33
3,940,000

4,783,515

California Municipal Finance Authority Rev., (Community Hospitals of Central California Obligated Group), 5.00%, 2/1/40
1,420,000

1,650,594

California Municipal Finance Authority Rev., (Congregational Home Obligated Group), 4.00%, 11/15/21
270,000

284,693

California Municipal Finance Authority Rev., (Congregational Home Obligated Group), 4.00%, 11/15/22
280,000

301,871

California Municipal Finance Authority Rev., (Congregational Home Obligated Group), 4.00%, 11/15/24
605,000

678,913

California Municipal Finance Authority Rev., (Congregational Home Obligated Group), 4.00%, 11/15/27
300,000

350,670

California Municipal Finance Authority Rev., (Congregational Home Obligated Group), 4.00%, 11/15/29
740,000

863,425

California Municipal Finance Authority Rev., (Eisenhower Medical Center), 5.25%, 7/1/20, Prerefunded at 100% of Par(2)
1,760,000

1,821,582

California Municipal Finance Authority Rev., (Eisenhower Medical Center), 5.00%, 7/1/24
2,045,000

2,385,881

California Municipal Finance Authority Rev., (Eisenhower Medical Center), 5.00%, 7/1/26
1,600,000

1,958,080

California Municipal Finance Authority Rev., (Eisenhower Medical Center), 5.00%, 7/1/29
2,100,000

2,589,489

California Municipal Finance Authority Rev., (Eisenhower Medical Center), 5.00%, 7/1/30
1,000,000

1,227,050

California Municipal Finance Authority Rev., (Eisenhower Medical Center), 5.00%, 7/1/31
1,000,000

1,221,260

California Municipal Finance Authority Rev., (Eisenhower Medical Center), 5.00%, 7/1/31
1,335,000

1,630,382

California Municipal Finance Authority Rev., (Eisenhower Medical Center), 5.00%, 7/1/34
1,500,000

1,814,220

California Municipal Finance Authority Rev., (Emerson College), 5.75%, 1/1/22, Prerefunded at 100% of Par(2)
2,250,000

2,501,595

California Municipal Finance Authority Rev., (Emerson College), 6.00%, 1/1/22, Prerefunded at 100% of Par(2)
3,000,000

3,352,680

California Municipal Finance Authority Rev., (Emerson College), 5.00%, 1/1/29
1,350,000

1,689,498

California Municipal Finance Authority Rev., (Emerson College), 5.00%, 1/1/31
1,480,000

1,836,399

California Municipal Finance Authority Rev., (Emerson College), 5.00%, 1/1/33
1,040,000

1,282,018

California Municipal Finance Authority Rev., (Emerson College), 5.00%, 1/1/34
1,000,000

1,228,810

California Municipal Finance Authority Rev., (Emerson College), 5.00%, 1/1/35
1,065,000

1,304,742

California Municipal Finance Authority Rev., (Emerson College), 5.00%, 1/1/36
720,000

879,674

California Municipal Finance Authority Rev., (Emerson College), 5.00%, 1/1/37
1,000,000

1,219,270

California Municipal Finance Authority Rev., (HumanGood California Obligated Group), 4.00%, 10/1/36
1,750,000

1,963,570


15


 
Principal Amount
Value
California Municipal Finance Authority Rev., (HumanGood California Obligated Group), 4.00%, 10/1/37
$
2,840,000

$
3,179,948

California Municipal Finance Authority Rev., (HumanGood California Obligated Group), 4.00%, 10/1/38
2,750,000

3,070,925

California Municipal Finance Authority Rev., (HumanGood California Obligated Group), 4.00%, 10/1/39
2,750,000

3,062,840

California Municipal Finance Authority Rev., (Northbay Healthcare Group Obligated Group), 3.00%, 11/1/20
1,000,000

1,016,200

California Municipal Finance Authority Rev., (Northbay Healthcare Group Obligated Group), 3.00%, 11/1/21
1,680,000

1,729,946

California Municipal Finance Authority Rev., (Northbay Healthcare Group Obligated Group), 4.00%, 11/1/22
1,000,000

1,073,660

California Municipal Finance Authority Rev., (Northbay Healthcare Group Obligated Group), 5.25%, 11/1/36
1,500,000

1,772,445

California Municipal Finance Authority Rev., (Northern California Retired Officers Community), 2.00%, 7/1/24 (California Mortgage Insurance)
4,000,000

4,036,960

California Municipal Finance Authority Rev., (Orange County), 5.00%, 6/1/37
2,990,000

3,687,716

California Municipal Finance Authority Rev., (Touro College and University System Obligated Group), 5.25%, 1/1/34
300,000

341,187

California Municipal Finance Authority Rev., (Touro College and University System Obligated Group), 5.25%, 1/1/40
1,000,000

1,126,680

California Municipal Finance Authority Rev., (University of La Verne), 6.25%, 6/1/20, Prerefunded at 100% of Par(2)
1,000,000

1,039,590

California Municipal Finance Authority Rev., (University of La Verne), 5.00%, 6/1/25
700,000

847,336

California Municipal Finance Authority Rev., (University of La Verne), 5.00%, 6/1/26
1,000,000

1,246,710

California Municipal Finance Authority Rev., (University of La Verne), 5.00%, 6/1/28
1,000,000

1,269,150

California Municipal Finance Authority Rev., (William Jessup University), 5.00%, 8/1/20
400,000

410,996

California Municipal Finance Authority Rev., (William Jessup University), 5.00%, 8/1/21
790,000

833,379

California Municipal Finance Authority Rev., (William Jessup University), 5.00%, 8/1/23
765,000

844,782

California Municipal Finance Authority Rev., (William Jessup University), 5.00%, 8/1/25
1,455,000

1,667,372

California Municipal Finance Authority Rev., (William Jessup University), 5.00%, 8/1/26
1,530,000

1,779,696

California Municipal Finance Authority Rev., (William Jessup University), 5.00%, 8/1/29
1,000,000

1,204,550

California Pollution Control Financing Authority Rev., (San Diego County Water Authority), 5.00%, 7/1/39(3)
2,000,000

2,443,320

California Public Finance Authority Rev., (Henry Mayo Newhall Memorial Hospital), 5.00%, 10/15/33
500,000

586,225

California Public Finance Authority Rev., (Henry Mayo Newhall Memorial Hospital), 5.00%, 10/15/37
1,000,000

1,160,770

California Public Finance Authority Rev., (Sharp Healthcare Obligated Group), VRDN, 1.20%, 9/3/19 (LOC: Barclays Bank plc)
2,600,000

2,600,000

California School Finance Authority Rev., (Alliance for College Ready Public Schools Obligated Group), 3.00%, 7/1/20(3)
1,115,000

1,127,633

California School Finance Authority Rev., (Alliance for College Ready Public Schools Obligated Group), 5.00%, 7/1/46
7,000,000

7,961,520

California School Finance Authority Rev., (Aspire Public Schools Obligated Group), 5.00%, 8/1/41(3)
1,200,000

1,356,636


16


 
Principal Amount
Value
California School Finance Authority Rev., (Green Dot Public Schools Obligated Group), 5.00%, 8/1/21(3)
$
100,000

$
106,538

California School Finance Authority Rev., (Green Dot Public Schools Obligated Group), 5.00%, 8/1/22(3)
165,000

181,040

California School Finance Authority Rev., (Green Dot Public Schools Obligated Group), 5.00%, 8/1/23(3)
175,000

197,370

California School Finance Authority Rev., (Green Dot Public Schools Obligated Group), 5.00%, 8/1/24(3)
160,000

185,058

California School Finance Authority Rev., (Green Dot Public Schools Obligated Group), 5.00%, 8/1/25(3)
150,000

177,563

California School Finance Authority Rev., (Green Dot Public Schools Obligated Group), 5.00%, 8/1/26(3)
150,000

181,425

California School Finance Authority Rev., (Green Dot Public Schools Obligated Group), 5.00%, 8/1/27(3)
160,000

197,546

California School Finance Authority Rev., (Green Dot Public Schools Obligated Group), 5.00%, 8/1/28(3)
190,000

238,473

California School Finance Authority Rev., (Rocketship Education Obligated Group), 5.00%, 6/1/26(3)
500,000

554,030

California School Finance Authority Rev., (Rocketship Education Obligated Group), 4.50%, 6/1/27(3)
380,000

414,299

California School Finance Authority Rev., (Rocketship Education Obligated Group), 5.00%, 6/1/34(3)
670,000

731,942

California School Finance Authority Rev., (Rocketship Education Obligated Group), 5.125%, 6/1/47(3)
635,000

689,705

California State Public Works Board Rev., 5.75%, 10/1/19, Prerefunded at 100% of Par(2)
2,000,000

2,007,300

California State Public Works Board Rev., 6.375%, 11/1/19, Prerefunded at 100% of Par(2)
2,500,000

2,521,725

California State Public Works Board Rev., 5.00%, 4/1/21
3,000,000

3,189,960

California State Public Works Board Rev., 5.00%, 9/1/22, Prerefunded at 100% of Par(2)
1,000,000

1,124,230

California State Public Works Board Rev., 5.00%, 4/1/23
2,000,000

2,202,040

California State Public Works Board Rev., 5.00%, 4/1/25
1,800,000

1,980,864

California State Public Works Board Rev., 5.25%, 12/1/26
3,000,000

3,276,750

California State Public Works Board Rev., 5.75%, 11/1/29
1,685,000

1,697,402

California State Public Works Board Rev., (California State University), 5.00%, 9/1/23, Prerefunded at 100% of Par(2)
1,865,000

2,172,930

California State Public Works Board Rev., (State of California Department of Corrections & Rehabilitation), 5.00%, 9/1/25
5,000,000

5,965,050

California State Public Works Board Rev., (State of California Department of General Services), 5.00%, 5/1/27
5,000,000

6,059,050

California State University Rev., 5.00%, 11/1/19
1,000,000

1,006,620

California State University Rev., 5.00%, 11/1/20
1,250,000

1,310,400

California State University Rev., 5.00%, 11/1/21
1,000,000

1,088,050

California State University Rev., 5.00%, 11/1/24
5,000,000

5,439,100

California State University Rev., 5.00%, 11/1/28(4)
500,000

652,350

California State University Rev., 5.00%, 11/1/28
2,000,000

2,589,920

California State University Rev., 5.00%, 11/1/29(4)
500,000

664,610

California State University Rev., 5.00%, 11/1/29
1,000,000

1,287,630

California State University Rev., 5.00%, 11/1/30(4)
600,000

791,460

California State University Rev., 5.00%, 11/1/30
3,000,000

3,841,380

California State University Rev., 5.00%, 11/1/31(4)
390,000

510,549

California State University Rev., 5.00%, 11/1/31
2,900,000

3,695,180

California State University Rev., 5.00%, 11/1/32
1,750,000

2,070,635


17


 
Principal Amount
Value
California State University Rev., 4.00%, 11/1/34
$
10,000,000

$
11,517,800

California State University Rev., 5.00%, 11/1/36
5,105,000

6,256,280

California State University Rev., 4.00%, 11/1/38
2,865,000

3,231,605

California State University Rev., VRDN, 4.00%, 11/1/23
4,000,000

4,419,240

California Statewide Communities Development Authority COP, (Salinas), 5.00%, 12/1/31 (AGM)
1,155,000

1,496,926

California Statewide Communities Development Authority COP, (Salinas), 5.00%, 12/1/34 (AGM)
1,340,000

1,719,073

California Statewide Communities Development Authority COP, (Salinas), 5.00%, 12/1/38 (AGM)
1,000,000

1,264,070

California Statewide Communities Development Authority Rev., (Adventist Health System / West Obligated Group), 5.00%, 3/1/23
1,190,000

1,352,506

California Statewide Communities Development Authority Rev., (Adventist Health System / West Obligated Group), 5.00%, 3/1/24
800,000

939,712

California Statewide Communities Development Authority Rev., (Adventist Health System / West Obligated Group), 5.00%, 3/1/25
750,000

907,463

California Statewide Communities Development Authority Rev., (Adventist Health System / West Obligated Group), 5.00%, 3/1/26
1,000,000

1,242,530

California Statewide Communities Development Authority Rev., (Adventist Health System / West Obligated Group), 5.00%, 3/1/27
1,590,000

1,962,076

California Statewide Communities Development Authority Rev., (Adventist Health System / West Obligated Group), 5.00%, 3/1/31
740,000

938,683

California Statewide Communities Development Authority Rev., (Adventist Health System / West Obligated Group), 5.00%, 3/1/32
900,000

1,132,434

California Statewide Communities Development Authority Rev., (Adventist Health System / West Obligated Group), 5.00%, 3/1/33
1,250,000

1,566,812

California Statewide Communities Development Authority Rev., (Adventist Health System / West Obligated Group), 5.00%, 3/1/34
1,000,000

1,248,310

California Statewide Communities Development Authority Rev., (Adventist Health System / West Obligated Group), 5.00%, 3/1/35
715,000

854,983

California Statewide Communities Development Authority Rev., (Adventist Health System / West Obligated Group), 5.00%, 3/1/35
1,475,000

1,833,086

California Statewide Communities Development Authority Rev., (American Baptist Homes of the West Obligated Group), 5.00%, 10/1/22
1,065,000

1,176,655

California Statewide Communities Development Authority Rev., (CHF-Irvine LLC), 5.00%, 5/15/21
1,225,000

1,304,490

California Statewide Communities Development Authority Rev., (CHF-Irvine LLC), 5.00%, 5/15/22
2,000,000

2,201,300

California Statewide Communities Development Authority Rev., (CHF-Irvine LLC), 5.00%, 5/15/23
1,000,000

1,135,030

California Statewide Communities Development Authority Rev., (CHF-Irvine LLC), 5.00%, 5/15/24
1,000,000

1,165,900

California Statewide Communities Development Authority Rev., (CHF-Irvine LLC), 5.00%, 5/15/25
1,925,000

2,306,034

California Statewide Communities Development Authority Rev., (CHF-Irvine LLC), 5.00%, 5/15/28
2,050,000

2,498,560

California Statewide Communities Development Authority Rev., (CHF-Irvine LLC), 5.00%, 5/15/29
1,250,000

1,518,375

California Statewide Communities Development Authority Rev., (CHF-Irvine LLC), 5.00%, 5/15/30
1,940,000

2,346,605

California Statewide Communities Development Authority Rev., (Collis P and Howard Huntington Memorial Hospital Obligated Group), 5.00%, 7/1/21
1,000,000

1,069,320

California Statewide Communities Development Authority Rev., (Collis P and Howard Huntington Memorial Hospital Obligated Group), 5.00%, 7/1/22
475,000

525,307


18


 
Principal Amount
Value
California Statewide Communities Development Authority Rev., (Collis P and Howard Huntington Memorial Hospital Obligated Group), 5.00%, 7/1/22
$
300,000

$
331,860

California Statewide Communities Development Authority Rev., (Collis P and Howard Huntington Memorial Hospital Obligated Group), 5.00%, 7/1/23
600,000

683,742

California Statewide Communities Development Authority Rev., (Collis P and Howard Huntington Memorial Hospital Obligated Group), 5.00%, 7/1/23
300,000

341,871

California Statewide Communities Development Authority Rev., (Collis P and Howard Huntington Memorial Hospital Obligated Group), 5.00%, 7/1/24
750,000

879,990

California Statewide Communities Development Authority Rev., (Collis P and Howard Huntington Memorial Hospital Obligated Group), 5.00%, 7/1/25
800,000

937,744

California Statewide Communities Development Authority Rev., (Collis P and Howard Huntington Memorial Hospital Obligated Group), 5.00%, 7/1/25
300,000

361,026

California Statewide Communities Development Authority Rev., (Collis P and Howard Huntington Memorial Hospital Obligated Group), 5.00%, 7/1/26
325,000

401,053

California Statewide Communities Development Authority Rev., (Collis P and Howard Huntington Memorial Hospital Obligated Group), 5.00%, 7/1/27
1,880,000

2,196,818

California Statewide Communities Development Authority Rev., (Cottage Health System Obligated Group), 5.25%, 11/1/30
1,000,000

1,046,170

California Statewide Communities Development Authority Rev., (Front Porch Communities & Services), 5.00%, 4/1/24
210,000

243,963

California Statewide Communities Development Authority Rev., (Front Porch Communities & Services), 5.00%, 4/1/25
275,000

328,807

California Statewide Communities Development Authority Rev., (Front Porch Communities & Services), 5.00%, 4/1/30
145,000

179,123

California Statewide Communities Development Authority Rev., (Front Porch Communities & Services), 5.00%, 4/1/31
125,000

153,593

California Statewide Communities Development Authority Rev., (Front Porch Communities & Services), 4.00%, 4/1/32
185,000

210,031

California Statewide Communities Development Authority Rev., (Hebrew Home for Aged Disabled), 3.50%, 11/1/21 (California Mortgage Insurance)
3,000,000

3,012,270

California Statewide Communities Development Authority Rev., (Kaiser Credit Group), 5.00%, 4/1/42
8,400,000

9,158,688

California Statewide Communities Development Authority Rev., (Lancer Educational Housing LLC), 4.00%, 6/1/21(3)
3,600,000

3,678,192

California Statewide Communities Development Authority Rev., (Lancer Educational Housing LLC), 4.00%, 6/1/26(3)
3,000,000

3,237,150

California Statewide Communities Development Authority Rev., (Lancer Educational Housing LLC), 5.00%, 6/1/34(3)
375,000

450,210

California Statewide Communities Development Authority Rev., (Lancer Educational Housing LLC), 5.00%, 6/1/39(3)
475,000

560,875

California Statewide Communities Development Authority Rev., (Loma Linda University Medical Center Obligated Group), 5.00%, 12/1/26(3)
5,000,000

5,919,950

California Statewide Communities Development Authority Rev., (Loma Linda University Medical Center Obligated Group), 5.00%, 12/1/33(3)
1,000,000

1,191,860

California Statewide Communities Development Authority Rev., (Loma Linda University Medical Center Obligated Group), 5.00%, 12/1/36(3)
3,500,000

4,025,630


19


 
Principal Amount
Value
California Statewide Communities Development Authority Rev., (Loma Linda University Medical Center Obligated Group), 5.25%, 12/1/44
$
1,085,000

$
1,220,386

California Statewide Communities Development Authority Rev., (Marin General Hospital Obligated Group), 5.00%, 8/1/30
500,000

638,035

California Statewide Communities Development Authority Rev., (Marin General Hospital Obligated Group), 5.00%, 8/1/32
675,000

851,020

California Statewide Communities Development Authority Rev., (Marin General Hospital Obligated Group), 5.00%, 8/1/33
450,000

566,906

California Statewide Communities Development Authority Rev., (Marin General Hospital Obligated Group), 5.00%, 8/1/34
625,000

783,831

California Statewide Communities Development Authority Rev., (Marin General Hospital Obligated Group), 5.00%, 8/1/35
725,000

907,932

California Statewide Communities Development Authority Rev., (Marin General Hospital Obligated Group), 5.00%, 8/1/36
700,000

873,712

California Statewide Communities Development Authority Rev., (Marin General Hospital Obligated Group), 5.00%, 8/1/37
500,000

622,140

California Statewide Communities Development Authority Rev., (Marin General Hospital Obligated Group), 5.00%, 8/1/38
500,000

618,890

California Statewide Communities Development Authority Rev., (Methodist Hospital of Southern California Obligated Group), 5.00%, 1/1/33
2,000,000

2,463,700

California Statewide Communities Development Authority Rev., (Methodist Hospital of Southern California Obligated Group), 5.00%, 1/1/35
5,175,000

6,331,095

California Statewide Communities Development Authority Rev., (Methodist Hospital of Southern California Obligated Group), 5.00%, 1/1/36
4,560,000

5,555,722

California Statewide Communities Development Authority Rev., (Methodist Hospital of Southern California Obligated Group), 5.00%, 1/1/38
3,825,000

4,621,288

California Statewide Communities Development Authority Rev., (Redlands Community Hospital), 5.00%, 10/1/28
1,000,000

1,226,150

California Statewide Communities Development Authority Rev., (Redlands Community Hospital), 5.00%, 10/1/29
600,000

732,768

California Statewide Communities Development Authority Rev., (Redlands Community Hospital), 5.00%, 10/1/31
870,000

1,053,309

California Statewide Communities Development Authority Rev., (Southern California Edison Co.), VRDN, 2.625%, 12/1/23
4,750,000

4,962,752

California Statewide Communities Development Authority Rev., (Viamonte Senior Living 1, Inc.), 3.00%, 7/1/25 (California Mortgage Insurance)
2,500,000

2,562,750

California Statewide Communities Development Authority Rev., (Viamonte Senior Living 1, Inc.), 3.00%, 7/1/26 (California Mortgage Insurance)
2,750,000

2,815,835

California Statewide Communities Development Authority Rev., (Viamonte Senior Living 1, Inc.), 3.00%, 7/1/27 (California Mortgage Insurance)
1,500,000

1,533,225

California Statewide Communities Development Authority Special Tax, 4.25%, 9/1/21
1,050,000

1,108,286

California Statewide Communities Development Authority Special Tax, 5.00%, 9/1/27
875,000

1,000,974

California Statewide Communities Development Authority Special Tax, 5.00%, 9/1/37
2,225,000

2,650,709

Carson Public Financing Authority Rev., (Carson Reassessment District No. 2001-1), 5.00%, 9/2/24
1,400,000

1,627,612

Carson Public Financing Authority Rev., (Carson Reassessment District No. 2001-1), 5.00%, 9/2/31
1,000,000

1,303,610


20


 
Principal Amount
Value
Carson Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 10/1/19 (AGM)
$
800,000

$
802,432

Carson Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 10/1/20 (AGM)
785,000

819,179

Cathedral City Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 8/1/28 (AGM)
1,190,000

1,395,810

Chaffey Joint Union High School District GO, 5.00%, 8/1/30
3,125,000

3,605,312

Chaffey Joint Union High School District GO, 5.00%, 8/1/32
1,220,000

1,400,938

City & County of San Francisco COP, 5.00%, 10/1/19
2,930,000

2,939,083

City & County of San Francisco GO, 5.00%, 6/15/25
1,880,000

2,166,531

Clovis Unified School District GO, Capital Appreciation, 0.00%, 8/1/24 (NATL)(1)
5,935,000

5,543,883

Commerce Community Development Commission Successor Agency Tax Allocation, 5.00%, 8/1/20
915,000

948,681

Commerce Community Development Commission Successor Agency Tax Allocation, 5.00%, 8/1/21
500,000

538,400

Commerce Community Development Commission Successor Agency Tax Allocation, 5.00%, 8/1/22
350,000

389,309

Commerce Community Development Commission Successor Agency Tax Allocation, 5.00%, 8/1/23 (AGM)
600,000

689,478

Compton Unified School District GO, Capital Appreciation, 0.00%, 6/1/35 (BAM)(1)
1,300,000

846,417

Compton Unified School District GO, Capital Appreciation, 0.00%, 6/1/37 (BAM)(1)
2,000,000

1,211,020

Compton Unified School District GO, Capital Appreciation, 0.00%, 6/1/39 (BAM)(1)
2,125,000

1,192,890

Compton Unified School District GO, Capital Appreciation, 0.00%, 6/1/41 (BAM)(1)
3,000,000

1,556,370

Contra Costa Transportation Authority Rev., 5.00%, 3/1/29
1,000,000

1,292,850

Contra Costa Transportation Authority Rev., 5.00%, 3/1/30
1,250,000

1,601,500

Contra Costa Transportation Authority Rev., 5.00%, 3/1/31
1,000,000

1,271,880

Davis Redevelopment Successor Agency Tax Allocation, 5.00%, 9/1/29(4)
660,000

894,366

Davis Redevelopment Successor Agency Tax Allocation, 5.00%, 9/1/31(4)
500,000

670,570

Davis Redevelopment Successor Agency Tax Allocation, 5.00%, 9/1/32(4)
1,000,000

1,333,820

Davis Redevelopment Successor Agency Tax Allocation, 4.00%, 9/1/33(4)
600,000

726,066

Del Mar Race Track Authority Rev., 4.00%, 10/1/19
1,275,000

1,277,473

Del Mar Race Track Authority Rev., 4.00%, 10/1/20
1,330,000

1,366,176

Del Mar Race Track Authority Rev., 5.00%, 10/1/35
660,000

743,893

Desert Sands Unified School District GO, 5.00%, 8/1/39
1,750,000

2,176,212

East Bay Municipal Utility District Wastewater System Rev., 5.00%, 6/1/38
1,700,000

2,471,936

East Bay Municipal Utility District Water System Rev., 5.00%, 6/1/32
1,000,000

1,345,360

East Bay Municipal Utility District Water System Rev., 5.00%, 6/1/34
1,000,000

1,333,120

East Side Union High School District GO, 5.00%, 8/1/25
1,405,000

1,566,659

Eastern Municipal Water District Rev., VRDN, 1.17%, 9/3/19 (SBBPA: Toronto-Dominion Bank)
4,375,000

4,375,000

Fontana Special Tax, (Folsom CA-Community Facilities District No. 22), 4.00%, 9/1/19
390,000

390,000

Fontana Special Tax, (Folsom CA-Community Facilities District No. 22), 5.00%, 9/1/20
545,000

563,486


21


 
Principal Amount
Value
Fontana Special Tax, (Folsom CA-Community Facilities District No. 22), 5.00%, 9/1/22
$
520,000

$
571,423

Fontana Special Tax, (Folsom CA-Community Facilities District No. 22), 5.00%, 9/1/24
575,000

666,431

Fontana Special Tax, (Fontana Community Facilities District No. 31), 4.00%, 9/1/28
750,000

846,038

Fontana Special Tax, (Fontana Community Facilities District No. 31), 4.00%, 9/1/29
555,000

624,053

Fontana Special Tax, (Fontana Community Facilities District No. 31), 4.00%, 9/1/30
1,110,000

1,237,428

Fontana Special Tax, (Fontana Community Facilities District No. 31), 4.00%, 9/1/31
925,000

1,026,778

Fontana Special Tax, (Fontana Community Facilities District No. 31), 4.00%, 9/1/32
1,000,000

1,107,650

Fontana Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 10/1/32
1,495,000

1,905,975

Foothill-Eastern Transportation Corridor Agency Rev., 6.25%, 1/15/33
3,750,000

4,458,000

Foothill-Eastern Transportation Corridor Agency Rev., 6.50%, 1/15/43
500,000

598,740

Foothill-Eastern Transportation Corridor Agency Rev., 5.75%, 1/15/46
1,000,000

1,172,260

Foothill-Eastern Transportation Corridor Agency Rev., 6.00%, 1/15/49
6,250,000

7,420,187

Foothill-Eastern Transportation Corridor Agency Rev., Capital Appreciation, 0.00%, 1/15/33(1)
750,000

518,040

Foothill-Eastern Transportation Corridor Agency Rev., Capital Appreciation, 0.00%, 1/15/42(1)
6,070,000

2,963,131

Foothill-Eastern Transportation Corridor Agency Rev., Capital Appreciation, VRN, 0.00%, 1/15/42
2,300,000

2,452,076

Foothill-Eastern Transportation Corridor Agency Rev., VRDN, 5.50%, 1/15/23
10,000,000

11,221,600

Fremont Union High School District GO, 5.00%, 8/1/32
3,260,000

4,196,598

Fremont Union High School District GO, 5.00%, 8/1/33
750,000

961,500

Fremont Union High School District GO, 5.00%, 8/1/34
660,000

841,355

Fremont Union High School District GO, 4.00%, 8/1/35
1,250,000

1,457,012

Fresno Joint Powers Financing Authority Rev., 5.00%, 4/1/24 (AGM)
1,350,000

1,580,782

Fresno Joint Powers Financing Authority Rev., 5.00%, 4/1/26 (AGM)
1,650,000

2,032,552

Fresno Joint Powers Financing Authority Rev., 5.00%, 4/1/28 (AGM)
1,400,000

1,755,026

Fresno Joint Powers Financing Authority Rev., 5.00%, 4/1/29 (AGM)
1,000,000

1,249,920

Fresno Joint Powers Financing Authority Rev., 5.00%, 4/1/30 (AGM)
1,350,000

1,679,643

Garden Grove Agency Community Development Successor Agency Tax Allocation, 5.00%, 10/1/22 (BAM)
500,000

560,765

Garden Grove Agency Community Development Successor Agency Tax Allocation, 5.00%, 10/1/23 (BAM)
500,000

580,055

Golden Empire Schools Financing Authority Rev., (Kern High School District), 5.00%, 5/1/21
3,000,000

3,198,360

Golden State Tobacco Securitization Corp. Rev., 5.00%, 6/1/20
1,000,000

1,029,770

Golden State Tobacco Securitization Corp. Rev., 5.00%, 6/1/20
1,000,000

1,028,040

Golden State Tobacco Securitization Corp. Rev., 5.00%, 6/1/21
1,000,000

1,068,900

Golden State Tobacco Securitization Corp. Rev., 5.00%, 6/1/22
2,070,000

2,272,301


22


 
Principal Amount
Value
Golden State Tobacco Securitization Corp. Rev., 5.00%, 6/1/23
$
3,000,000

$
3,381,750

Golden State Tobacco Securitization Corp. Rev., 5.00%, 6/1/24
7,435,000

8,566,979

Golden State Tobacco Securitization Corp. Rev., 5.00%, 6/1/26
6,000,000

7,200,540

Golden State Tobacco Securitization Corp. Rev., 5.00%, 6/1/27
7,960,000

9,713,588

Golden State Tobacco Securitization Corp. Rev., 5.00%, 6/1/28
2,000,000

2,431,000

Golden State Tobacco Securitization Corp. Rev., 5.00%, 6/1/29
6,650,000

7,619,570

Golden State Tobacco Securitization Corp. Rev., 5.00%, 6/1/30
1,000,000

1,144,100

Golden State Tobacco Securitization Corp. Rev., 3.50%, 6/1/36
11,305,000

11,540,596

Golden State Tobacco Securitization Corp. Rev., 5.00%, 6/1/47
2,500,000

2,564,150

Golden State Tobacco Securitization Corp. Rev., 5.25%, 6/1/47
2,500,000

2,580,875

Golden State Tobacco Securitization Corp. Rev., Capital Appreciation, 0.00%, 6/1/25 (AGM)(1)
3,000,000

2,774,490

Grossmont-Cuyamaca Community College District GO, 5.25%, 8/1/27
750,000

873,390

Hayward Area Recreation & Park District COP, 5.125%, 1/1/24, Prerefunded at 100% of Par(2)
2,750,000

3,246,870

Hayward Unified School District GO, 4.00%, 8/1/36 (BAM)
1,000,000

1,165,500

Hayward Unified School District GO, 4.00%, 8/1/37 (BAM)
1,000,000

1,161,610

Hayward Unified School District GO, 4.00%, 8/1/38 (BAM)
1,000,000

1,155,080

Hayward Unified School District GO, 4.00%, 8/1/39 (BAM)
2,360,000

2,719,239

Hayward Unified School District GO, 4.00%, 8/1/40 (BAM)
3,000,000

3,437,700

Hesperia Community Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/33 (AGM)
4,195,000

5,361,965

Huntington Beach Union High School District GO, 5.00%, 8/1/26
3,030,000

3,503,286

Imperial Irrigation District Electric System Rev., 5.00%, 11/1/30
440,000

591,488

Imperial Irrigation District Electric System Rev., 5.00%, 11/1/31
400,000

534,512

Imperial Irrigation District Electric System Rev., 5.00%, 11/1/32
525,000

695,079

Imperial Irrigation District Electric System Rev., 5.00%, 11/1/33
1,000,000

1,315,200

Imperial Irrigation District Electric System Rev., 5.00%, 11/1/34
1,100,000

1,439,361

Imperial Irrigation District Electric System Rev., 5.00%, 11/1/35
1,520,000

1,976,334

Imperial Irrigation District Electric System Rev., 5.00%, 11/1/36
1,015,000

1,231,692

Inglewood Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 5/1/22 (BAM)
350,000

385,896

Inglewood Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 5/1/23 (BAM)
1,000,000

1,138,660

Inglewood Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 5/1/25 (BAM)
1,500,000

1,814,055

Inglewood Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 5/1/38 (BAM)
500,000

604,620

Inglewood Unified School District GO, 4.00%, 8/1/21 (BAM)
400,000

421,064

Inglewood Unified School District GO, 5.00%, 8/1/29 (BAM)
235,000

288,108

Inglewood Unified School District GO, 5.00%, 8/1/31 (BAM)
500,000

604,420

Inglewood Unified School District GO, 5.00%, 8/1/32 (BAM)
500,000

601,920

Inglewood Unified School District GO, 5.00%, 8/1/34 (BAM)
300,000

359,121

Inglewood Unified School District GO, 5.00%, 8/1/35 (BAM)
855,000

1,021,640

Inglewood Unified School District GO, 5.00%, 8/1/37 (BAM)
500,000

593,510

Inland Valley Development Agency Tax Allocation, 5.25%, 9/1/37
1,665,000

1,930,268

Inland Valley Development Agency Tax Allocation, 5.00%, 9/1/44
1,765,000

2,007,070

Irvine Special Assessment, 4.00%, 9/2/19
2,000,000

2,000,000

Irvine Special Assessment, 4.00%, 9/2/19
1,375,000

1,375,000


23


 
Principal Amount
Value
Irvine Special Assessment, 5.00%, 9/2/26
$
1,500,000

$
1,889,655

Irvine Special Tax, 5.00%, 9/1/39
1,000,000

1,120,830

Irvine Unified School District Special Tax, 5.00%, 9/1/21
1,500,000

1,603,710

Irvine Unified School District Special Tax, 5.00%, 9/1/23
1,135,000

1,285,785

Irvine Unified School District Special Tax, 5.00%, 9/1/25
1,330,000

1,581,516

Irvine Unified School District Special Tax, 5.00%, 9/1/26
640,000

778,669

Irvine Unified School District Special Tax, 5.00%, 9/1/29(4)
360,000

464,756

Irvine Unified School District Special Tax, 5.00%, 9/1/31(4)
350,000

448,329

Irvine Unified School District Special Tax, 5.00%, 9/1/33(4)
400,000

508,336

Irvine Unified School District Special Tax, 5.00%, 9/1/35(4)
500,000

631,575

Irvine Unified School District Special Tax, 4.00%, 9/1/36 (AGM)
1,500,000

1,683,540

Irvine Unified School District Special Tax, 4.00%, 9/1/37(4)
570,000

652,314

Irvine Unified School District Special Tax, 4.00%, 9/1/40(4)
690,000

781,929

Jurupa Public Financing Authority Special Tax, 5.00%, 9/1/23
625,000

723,600

Jurupa Public Financing Authority Special Tax, 5.00%, 9/1/24
680,000

813,443

Jurupa Public Financing Authority Special Tax, 5.00%, 9/1/25
1,000,000

1,196,240

Jurupa Unified School District GO, 5.00%, 8/1/37
1,075,000

1,338,310

La Quinta Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/19
1,150,000

1,150,000

La Quinta Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/20
1,045,000

1,087,521

La Quinta Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/31
4,265,000

5,028,947

La Verne COP, (Brethren Hillcrest Homes), 5.00%, 5/15/20
640,000

655,149

La Verne COP, (Brethren Hillcrest Homes), 5.00%, 5/15/21
315,000

332,747

La Verne COP, (Brethren Hillcrest Homes), 5.00%, 5/15/22
225,000

244,800

La Verne COP, (Brethren Hillcrest Homes), 5.00%, 5/15/29
635,000

685,540

Lancaster Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 8/1/24 (AGM)
435,000

516,445

Lancaster Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 8/1/25 (AGM)
600,000

734,034

Long Beach Bond Finance Authority Rev., 5.00%, 11/15/35
1,920,000

2,617,805

Long Beach Bond Finance Authority Rev., 5.50%, 11/15/37
695,000

1,007,264

Long Beach Harbor Rev., 5.00%, 12/15/20
6,250,000

6,569,687

Long Beach Marina System Rev., 5.00%, 5/15/23
650,000

724,308

Long Beach Marina System Rev., 5.00%, 5/15/24
1,380,000

1,569,998

Long Beach Marina System Rev., 5.00%, 5/15/25
500,000

579,790

Long Beach Marina System Rev., 5.00%, 5/15/27
800,000

920,688

Long Beach Marina System Rev., 5.00%, 5/15/28
600,000

688,782

Long Beach Marina System Rev., 5.00%, 5/15/40
2,250,000

2,563,560

Long Beach Unified School District GO, 5.00%, 8/1/28
5,000,000

6,333,050

Los Alamitos Unified School District COP, Capital Appreciation, VRN, 0.00%, 8/1/42
3,200,000

3,368,736

Los Angeles Community College District GO, 5.00%, 6/1/26
2,115,000

2,682,264

Los Angeles Community College District GO, 4.00%, 8/1/37
3,000,000

3,412,410

Los Angeles County COP, 5.00%, 3/1/21
1,195,000

1,269,090

Los Angeles County COP, 5.00%, 3/1/22
1,000,000

1,101,200

Los Angeles County Metropolitan Transportation Authority Rev., 5.00%, 7/1/20
3,000,000

3,103,380


24


 
Principal Amount
Value
Los Angeles County Metropolitan Transportation Authority Rev., 5.00%, 7/1/21
$
2,470,000

$
2,657,078

Los Angeles County Metropolitan Transportation Authority Rev., 5.00%, 7/1/32
8,000,000

10,514,320

Los Angeles County Redevelopment Refunding Authority Redev Agency Successor Agency Tax Allocation, Capital Appreciation, 0.00%, 12/1/19 (AGM)(1)
1,500,000

1,495,335

Los Angeles County Sanitation Districts Financing Authority Rev., 5.00%, 10/1/23
2,855,000

3,329,530

Los Angeles County Sanitation Districts Financing Authority Rev., 5.00%, 10/1/26
2,700,000

3,337,173

Los Angeles Department of Airports Rev., 5.00%, 5/15/24
3,040,000

3,126,397

Los Angeles Department of Airports Rev., 5.00%, 5/15/26
1,500,000

1,836,030

Los Angeles Department of Airports Rev., 5.00%, 5/15/27
1,280,000

1,562,842

Los Angeles Department of Airports Rev., 5.00%, 5/15/33
1,350,000

1,699,150

Los Angeles Department of Airports Rev., 5.00%, 5/15/34
1,250,000

1,568,062

Los Angeles Department of Airports Rev., 5.00%, 5/15/35
1,500,000

1,874,085

Los Angeles Department of Airports Rev., 5.00%, 5/15/38
2,500,000

3,225,200

Los Angeles Department of Airports Rev., 5.00%, 5/15/39
6,170,000

7,932,646

Los Angeles Department of Water Rev., 5.00%, 7/1/23
1,215,000

1,404,297

Los Angeles Department of Water Rev., 5.00%, 7/1/23
1,180,000

1,363,844

Los Angeles Department of Water Rev., 5.00%, 7/1/23
1,445,000

1,670,131

Los Angeles Department of Water Rev., 5.00%, 7/1/24
1,500,000

1,673,520

Los Angeles Department of Water Rev., 5.00%, 7/1/25
3,940,000

4,865,821

Los Angeles Department of Water Rev., 5.00%, 7/1/26
4,040,000

5,132,982

Los Angeles Department of Water Rev., 5.00%, 7/1/27
2,125,000

2,771,085

Los Angeles Department of Water Rev., 5.00%, 7/1/28
2,840,000

3,755,048

Los Angeles Department of Water Rev., 5.00%, 7/1/29
6,030,000

7,938,676

Los Angeles Department of Water & Power System Rev., 5.00%, 7/1/25
1,525,000

1,878,358

Los Angeles Department of Water & Power System Rev., 5.00%, 7/1/26
1,000,000

1,114,790

Los Angeles Department of Water & Power System Rev., 5.00%, 7/1/26
1,300,000

1,525,420

Los Angeles Department of Water & Power System Rev., 5.00%, 7/1/26
1,000,000

1,266,590

Los Angeles Department of Water & Power System Rev., 5.00%, 7/1/27
6,470,000

7,459,522

Los Angeles Department of Water & Power System Rev., VRDN, 1.15%, 9/3/19 (SBBPA: Bank of America N.A.)
300,000

300,000

Los Angeles Department of Water & Power System Rev., VRDN, 1.16%, 9/3/19 (SBBPA: Bank of America N.A.)
2,100,000

2,100,000

Los Angeles Unified School District COP, 5.00%, 10/1/29
1,700,000

1,885,283

Los Angeles Unified School District GO, 5.00%, 7/1/21
3,000,000

3,215,310

Los Angeles Unified School District GO, 5.00%, 7/1/21
1,120,000

1,200,382

Los Angeles Unified School District GO, 5.00%, 7/1/23
9,175,000

10,533,450

Los Angeles Unified School District GO, 5.00%, 7/1/24
5,140,000

5,506,996

Los Angeles Unified School District GO, 5.00%, 7/1/24
5,000,000

5,925,850

Los Angeles Unified School District GO, 5.00%, 7/1/26
3,555,000

4,191,238

Los Angeles Unified School District GO, 5.00%, 7/1/26
2,500,000

3,133,100

Los Angeles Unified School District GO, 5.25%, 7/1/26
4,000,000

4,137,920

Los Angeles Unified School District GO, 5.00%, 7/1/27
1,050,000

1,236,301


25


 
Principal Amount
Value
Los Angeles Unified School District GO, 5.00%, 7/1/30
$
1,155,000

$
1,354,006

Los Angeles Wastewater System Rev., 5.00%, 6/1/35
1,500,000

1,925,490

M-S-R Energy Authority Rev., 7.00%, 11/1/34
5,880,000

9,163,568

M-S-R Energy Authority Rev., 7.00%, 11/1/34
1,000,000

1,556,780

M-S-R Energy Authority Rev., 6.50%, 11/1/39
1,425,000

2,279,259

M-S-R Energy Authority Rev., 6.50%, 11/1/39
1,180,000

1,887,386

Manhattan Beach Unified School District GO, Capital Appreciation, 0.00%, 9/1/29(1)
5,905,000

4,934,868

Menlo Park Community Development Agency Successor Agency Tax Allocation, 5.00%, 10/1/19
420,000

421,285

Menlo Park Community Development Agency Successor Agency Tax Allocation, 5.00%, 10/1/20
325,000

339,222

Milpitas Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/25
2,325,000

2,881,907

Milpitas Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/26
6,285,000

7,753,302

Modesto Irrigation District Rev., 5.00%, 10/1/30
2,000,000

2,684,240

Modesto Irrigation District Rev., 5.00%, 10/1/31
1,200,000

1,598,112

Modesto Irrigation District Rev., 5.00%, 10/1/35
2,215,000

2,882,247

Modesto Irrigation District Rev., 5.00%, 10/1/36
1,250,000

1,619,162

Municipal Improvement Corp. of Los Angeles Rev., 5.00%, 11/1/22
1,000,000

1,127,760

Municipal Improvement Corp. of Los Angeles Rev., 5.00%, 3/1/25
3,000,000

3,297,330

Municipal Improvement Corp. of Los Angeles Rev., 5.00%, 11/1/25
750,000

931,785

Municipal Improvement Corp. of Los Angeles Rev., (Los Angeles), 5.00%, 11/1/31
750,000

873,428

Municipal Improvement Corp. of Los Angeles Rev., (Los Angeles), 5.00%, 11/1/32
750,000

871,590

Municipal Improvement Corp. of Los Angeles Rev., (Los Angeles), 5.00%, 11/1/33
750,000

878,933

Municipal Improvement Corp. of Los Angeles Rev., (Los Angeles), 5.00%, 11/1/34
1,000,000

1,171,230

Municipal Improvement Corp. of Los Angeles Rev., (Los Angeles), 5.00%, 11/1/35
1,750,000

2,047,955

Municipal Improvement Corp. of Los Angeles Rev., (Los Angeles), 5.00%, 11/1/36
1,500,000

1,753,305

Municipal Improvement Corp. of Los Angeles Rev., (Los Angeles), 5.00%, 11/1/37
2,085,000

2,434,780

Murrieta Financing Authority Special Tax, 5.00%, 9/1/21
1,200,000

1,288,212

Napa Valley Community College District GO, Capital Appreciation, VRN, 0.00%, 8/1/22
5,745,000

5,880,525

Napa Valley Community College District GO, Capital Appreciation, VRN, 0.00%, 8/1/33
2,850,000

3,056,454

Napa Valley Community College District GO, Capital Appreciation, VRN, 0.00%, 8/1/34
1,500,000

1,603,545

Natomas Unified School District GO, 5.00%, 9/1/26 (BAM)
1,785,000

2,065,834

Newport Beach Rev., (Hoag Memorial Hospital / Newport Healthcare Obligated Group), 6.00%, 12/1/21, Prerefunded at 100% of Par(2)
2,000,000

2,226,300

Norman Y Mineta San Jose International Airport SJC Rev., 5.00%, 3/1/27
1,295,000

1,518,672

Norman Y Mineta San Jose International Airport SJC Rev., 5.00%, 3/1/28
1,500,000

1,753,335

Norman Y Mineta San Jose International Airport SJC Rev., 5.00%, 3/1/30
1,750,000

2,034,707


26


 
Principal Amount
Value
Norman Y Mineta San Jose International Airport SJC Rev., 5.00%, 3/1/31
$
1,000,000

$
1,160,790

North Lake Tahoe Public Financing Authority Rev., 4.00%, 12/1/19
1,000,000

1,007,650

North Orange County Community College District GO, 4.00%, 8/1/30
425,000

538,858

North Orange County Community College District GO, 4.00%, 8/1/31
410,000

514,575

North Orange County Community College District GO, 4.00%, 8/1/32
450,000

555,845

North Orange County Community College District GO, 4.00%, 8/1/33
300,000

365,892

Northern California Energy Authority Rev., VRDN, 4.00%, 7/1/24
10,000,000

11,042,700

Northern California Power Agency Rev., 5.00%, 8/1/20
1,515,000

1,540,997

Northern California Power Agency Rev., 5.00%, 8/1/21
2,050,000

2,082,533

Northern California Power Agency Rev., 5.25%, 8/1/22
4,250,000

4,321,952

Northern California Power Agency Rev., 5.00%, 7/1/26
1,750,000

1,941,012

Northern California Power Agency Rev., 5.00%, 7/1/27
2,000,000

2,217,720

Northern California Transmission Agency Rev., 5.00%, 5/1/28
1,000,000

1,252,930

Northern California Transmission Agency Rev., 5.00%, 5/1/29
1,000,000

1,247,320

Northern California Transmission Agency Rev., 5.00%, 5/1/30
1,855,000

2,300,089

Oakland Alameda County Coliseum Authority Rev., 5.00%, 2/1/25
4,065,000

4,429,143

Oakland Sewer Rev., 5.00%, 6/15/26
1,200,000

1,426,380

Oakland Unified School District / Alameda County GO, 5.00%, 8/1/20
1,670,000

1,729,619

Oakland Unified School District / Alameda County GO, 6.625%, 8/1/21, Prerefunded at 100% of Par(2)
1,870,000

2,073,980

Oakland Unified School District / Alameda County GO, 5.00%, 8/1/22
545,000

587,755

Oakland Unified School District / Alameda County GO, 5.50%, 8/1/22, Prerefunded at 100% of Par(2)
3,150,000

3,570,840

Oakland Unified School District / Alameda County GO, 5.00%, 8/1/23
1,400,000

1,607,046

Oakland Unified School District / Alameda County GO, 5.00%, 8/1/25
650,000

792,708

Oakland Unified School District / Alameda County GO, 5.00%, 8/1/25
2,500,000

3,048,875

Ontario Community Facilities District No. 24 Special Tax, 4.00%, 9/1/20
295,000

302,558

Ontario Community Facilities District No. 24 Special Tax, 4.00%, 9/1/21
285,000

299,102

Ontario Community Facilities District No. 24 Special Tax, 4.00%, 9/1/22
300,000

320,043

Ontario Community Facilities District No. 24 Special Tax, 4.00%, 9/1/23
60,000

65,038

Ontario Community Facilities District No. 30 Special Tax, 4.00%, 9/1/24
315,000

344,629

Ontario Community Facilities District No. 30 Special Tax, 4.00%, 9/1/25
325,000

359,210

Ontario Community Facilities District No. 30 Special Tax, 4.00%, 9/1/26
340,000

378,321

Ontario Community Facilities District No. 30 Special Tax, 4.00%, 9/1/29
230,000

251,505

Orange County Special Assessment, 3.00%, 9/2/25
285,000

316,042

Orange County Special Assessment, 5.00%, 9/2/26
600,000

755,862


27


 
Principal Amount
Value
Orange County Special Assessment, 5.00%, 9/2/28
$
600,000

$
793,812

Orange County Special Assessment, 5.00%, 9/2/30
875,000

1,142,881

Orange County Airport Rev., 5.00%, 7/1/24
1,470,000

1,751,358

Orange County Airport Rev., 5.00%, 7/1/25
1,000,000

1,229,860

Orange County Airport Rev., 5.00%, 7/1/26
1,000,000

1,266,760

Orange County Community Facilities District Special Tax, 5.00%, 8/15/28
1,960,000

2,142,888

Orange County Community Facilities District Special Tax, 5.00%, 8/15/29
2,000,000

2,396,260

Orange County Community Facilities District Special Tax, 5.00%, 8/15/30
2,220,000

2,645,774

Orange County Community Facilities District Special Tax, 5.00%, 8/15/32
2,575,000

3,048,414

Orange County Community Facilities District Special Tax, 5.00%, 8/15/35
975,000

1,121,699

Oroville Rev., (Oroville Hospital), 5.25%, 4/1/34
1,685,000

2,089,821

Oroville Rev., (Oroville Hospital), 5.25%, 4/1/39
3,500,000

4,276,580

Oxnard Financing Authority Rev., 5.00%, 6/1/25 (AGM)
2,000,000

2,371,240

Oxnard Financing Authority Rev., 5.00%, 6/1/26 (AGM)
3,690,000

4,365,528

Oxnard Financing Authority Rev., 5.00%, 6/1/28 (AGM)
1,515,000

1,786,973

Oxnard Financing Authority Rev., 5.00%, 6/1/32 (AGM)
2,500,000

2,922,300

Oxnard Financing Authority Rev., 5.00%, 6/1/33 (AGM)
1,000,000

1,166,910

Oxnard School District GO, VRN, 3.00%, 8/1/40 (AGM)
3,750,000

4,237,425

Palm Desert Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 10/1/30 (BAM)
350,000

440,661

Palmdale Community Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/28 (NATL)
2,150,000

2,691,413

Palmdale Community Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/29 (NATL)
2,075,000

2,592,131

Palmdale Community Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/30 (NATL)
1,215,000

1,512,675

Palomar Health COP, (Palomar Health Obligated Group), 6.75%, 11/1/19, Prerefunded at 100% of Par(2)
500,000

504,510

Palomar Health COP, (Palomar Health Obligated Group), 5.25%, 11/1/20, Prerefunded at 100% of Par(2)
475,000

490,770

Palomar Health COP, (Palomar Health Obligated Group), 5.00%, 11/1/20
535,000

555,079

Palomar Health COP, (Palomar Health Obligated Group), 6.00%, 11/1/20, Prerefunded at 100% of Par(2)
1,870,000

1,977,824

Palomar Health COP, (Palomar Health Obligated Group), 5.00%, 11/1/22
770,000

847,585

Palomar Health COP, (Palomar Health Obligated Group), 5.00%, 11/1/25
650,000

772,402

Palomar Health COP, (Palomar Health Obligated Group), 5.00%, 11/1/26
475,000

575,334

Palomar Health COP, (Palomar Health Obligated Group), 5.00%, 11/1/27
720,000

887,026

Palomar Health COP, (Palomar Health Obligated Group), 5.00%, 11/1/32
4,000,000

4,772,240

Palomar Health GO, 5.00%, 8/1/28
1,340,000

1,645,038

Palomar Health GO, Capital Appreciation, VRN, 0.00%, 8/1/38 (AGC)
3,330,000

4,693,901

Palomar Health Rev., (Palomar Health Obligated Group), 5.00%, 11/1/21
3,625,000

3,875,560


28


 
Principal Amount
Value
Palomar Health Rev., (Palomar Health Obligated Group), 5.00%, 11/1/24
$
2,375,000

$
2,756,069

Palomar Health Rev., (Palomar Health Obligated Group), 5.00%, 11/1/29
4,585,000

5,472,060

Palomar Health Rev., (Palomar Health Obligated Group), 5.00%, 11/1/27
4,100,000

4,939,270

Palomar Health Rev., (Palomar Health Obligated Group), 5.00%, 11/1/39
4,080,000

4,723,171

Palos Verdes Peninsula Unified School District GO, 0.00%, 8/1/33(1)
2,600,000

1,911,364

Peninsula Corridor Joint Powers Board Rev., 5.00%, 10/1/31
1,045,000

1,386,590

Peninsula Corridor Joint Powers Board Rev., 5.00%, 10/1/32
785,000

1,035,062

Peninsula Corridor Joint Powers Board Rev., 5.00%, 10/1/36
300,000

387,699

Peninsula Corridor Joint Powers Board Rev., 5.00%, 10/1/37
435,000

559,684

Peninsula Corridor Joint Powers Board Rev., 5.00%, 10/1/38
550,000

703,401

Peninsula Corridor Joint Powers Board Rev., 5.00%, 10/1/39
1,210,000

1,543,355

Peralta Community College District GO, 5.00%, 8/1/22
2,145,000

2,393,777

Perris Union High School District GO, 4.00%, 9/1/40 (AGM)
2,000,000

2,342,660

Pittsburg Successor Agency Redevelopment Agency Tax Allocation, 5.00%, 9/1/29 (AGM)
3,000,000

3,693,510

Pomona Unified School District GO, 6.55%, 8/1/29 (NATL)
1,000,000

1,311,140

Pomona Unified School District GO, 6.15%, 8/1/30 (NATL)
855,000

969,656

Porterville Public Financing Authority Rev., 5.625%, 10/1/21, Prerefunded at 100% of Par(2)
4,000,000

4,397,240

Poway Unified School District GO, Capital Appreciation, 0.00%, 8/1/41(1)
4,890,000

2,817,960

Poway Unified School District Rev., 7.875%, 9/15/19, Prerefunded at 100% of Par(2)
1,010,000

1,012,111

Poway Unified School District Public Financing Authority Special Tax, 5.00%, 9/1/31
1,645,000

2,041,823

Rancho Santa Fe Community Services District Special Tax, 5.125%, 9/1/21, Prerefunded at 100% of Par(2)
790,000

855,902

Rancho Santa Fe Community Services District Special Tax, 5.25%, 9/1/21, Prerefunded at 100% of Par(2)
1,300,000

1,411,644

Rancho Santa Fe Community Services District Special Tax, 5.375%, 9/1/21, Prerefunded at 100% of Par(2)
1,410,000

1,534,559

Redding Electric System Rev., 5.00%, 6/1/28
1,000,000

1,299,030

Redding Electric System Rev., 5.00%, 6/1/29
1,250,000

1,617,450

Redding Electric System Rev., 5.00%, 6/1/30
1,250,000

1,607,487

Regents of the University of California Medical Center Pooled Rev., 5.00%, 5/15/33
3,015,000

3,674,592

Regents of the University of California Medical Center Pooled Rev., 5.00%, 5/15/34
2,000,000

2,428,960

Rio Elementary School District Community Facilities District Special Tax, 5.00%, 9/1/24
700,000

812,651

Riverside County Redevelopment Successor Agency Tax Allocation, 6.50%, 10/1/20, Prerefunded at 100% of Par(2)
1,560,000

1,653,413

Riverside County Transportation Commission Rev., 5.25%, 6/1/23, Prerefunded at 100% of Par(2)
1,335,000

1,549,254

Riverside County Transportation Commission Rev., Capital Appreciation, 0.00%, 6/1/28(1)
1,000,000

819,550

Riverside County Transportation Commission Rev., Capital Appreciation, 0.00%, 6/1/30(1)
1,000,000

766,490

Riverside County Transportation Commission Rev., Capital Appreciation, 0.00%, 6/1/31(1)
1,555,000

1,147,808


29


 
Principal Amount
Value
Riverside Sewer Rev., 5.00%, 8/1/25
$
1,630,000

$
2,009,871

Riverside Sewer Rev., 5.00%, 8/1/26
3,400,000

4,185,774

Riverside Sewer Rev., 5.00%, 8/1/35
3,750,000

4,841,137

Riverside Sewer Rev., 5.00%, 8/1/37
3,265,000

4,174,041

Riverside Water Rev., 5.00%, 10/1/36
7,185,000

9,373,623

Riverside Water Rev., 5.00%, 10/1/37
7,295,000

9,484,302

Romoland School District Special Tax, 4.00%, 9/1/21
1,035,000

1,085,580

Romoland School District Special Tax, 5.00%, 9/1/22
1,140,000

1,253,840

Romoland School District Special Tax, (Romoland School District Community Facilities District No. 2004-1 Heritage Lake), 5.00%, 9/1/36
1,000,000

1,174,690

Romoland School District Special Tax, (Romoland School District Community Facilities District No. 2004-1 Heritage Lake), 5.00%, 9/1/37
1,100,000

1,289,552

Romoland School District Special Tax, (Romoland School District Community Facilities District No. 2004-1 Heritage Lake), 5.00%, 9/1/38
1,000,000

1,169,890

Roseville Special Tax, (Fiddyment Ranch Community Facilities District No. 1), 5.00%, 9/1/25
750,000

889,988

Roseville Special Tax, (Fiddyment Ranch Community Facilities District No. 1), 5.00%, 9/1/26
1,075,000

1,304,383

Roseville Special Tax, (Fiddyment Ranch Community Facilities District No. 1), 5.00%, 9/1/28
1,025,000

1,264,296

Roseville Special Tax, (Fiddyment Ranch Community Facilities District No. 1), 5.00%, 9/1/30
1,390,000

1,695,119

Roseville Special Tax, (Fiddyment Ranch Community Facilities District No. 1), 5.00%, 9/1/31
1,000,000

1,214,360

Roseville Special Tax, (Fiddyment Ranch Community Facilities District No. 1), 5.00%, 9/1/32
1,250,000

1,512,225

Roseville Special Tax, (Fiddyment Ranch Community Facilities District No. 1), 5.00%, 9/1/34
1,050,000

1,261,827

Roseville Water Utility COP, 5.00%, 12/1/26
1,690,000

2,090,936

Roseville Water Utility COP, 5.00%, 12/1/27
2,250,000

2,773,080

Sacramento City Financing Authority Rev., 5.40%, 11/1/20 (Ambac)
925,000

949,587

Sacramento County Airport System Rev., 5.00%, 7/1/20
1,000,000

1,033,020

Sacramento County Airport System Rev., 5.00%, 7/1/23
1,000,000

1,032,600

Sacramento County Airport System Rev., 5.00%, 7/1/24
1,000,000

1,032,520

Sacramento County Airport System Rev., 5.00%, 7/1/33
1,450,000

1,848,460

Sacramento County Airport System Rev., 5.00%, 7/1/34
1,000,000

1,270,820

Sacramento County Airport System Rev., 5.00%, 7/1/35
1,000,000

1,266,990

Sacramento County Sanitation Districts Financing Authority Rev., 5.25%, 12/1/21 (NATL)
1,000,000

1,097,640

Sacramento County Sanitation Districts Financing Authority Rev., VRN, 2.22%, (67% of the 3-month LIBOR plus 0.53%), 12/1/35 (NATL)
8,500,000

8,243,640

Sacramento Municipal Utility District Rev., 5.25%, 7/1/24 (Ambac)
3,000,000

3,434,550

Sacramento Municipal Utility District Rev., 5.00%, 8/15/24
1,500,000

1,681,380

Sacramento Municipal Utility District Rev., 5.00%, 8/15/24
1,000,000

1,201,500

Sacramento Municipal Utility District Rev., 5.00%, 8/15/25
5,000,000

5,601,500

Sacramento Municipal Utility District Rev., 5.00%, 8/15/28
1,200,000

1,607,604

Sacramento Municipal Utility District Rev., VRDN, 5.00%, 10/15/25
7,500,000

9,133,575

Sacramento Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 12/1/34 (BAM)
1,355,000

1,623,873


30


 
Principal Amount
Value
Sacramento Transient Occupancy Tax Rev., 5.00%, 6/1/36
$
1,000,000

$
1,256,880

Sacramento Transient Occupancy Tax Rev., 5.00%, 6/1/37
2,250,000

2,819,160

Sacramento Transient Occupancy Tax Rev., 5.00%, 6/1/38
1,000,000

1,247,850

Salinas Union High School District GO, 0.00%, 8/1/20(1)
5,000,000

4,906,950

San Bernardino Community College District GO, Capital Appreciation, VRN, 0.00%, 8/1/34
17,240,000

21,828,426

San Bernardino Redevelopment Agency Successor Agency Tax Allocation, 4.00%, 12/1/19 (AGM)
2,665,000

2,685,387

San Bernardino Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 12/1/20 (AGM)
2,915,000

3,065,181

San Bernardino Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 12/1/22 (AGM)
2,310,000

2,604,848

San Bernardino Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 12/1/24 (AGM)
2,310,000

2,773,548

San Bernardino Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 12/1/25 (AGM)
1,275,000

1,574,013

San Buenaventura Rev., (Community Memorial Health System), 8.00%, 12/1/26
2,000,000

2,277,700

San Buenaventura Rev., (Community Memorial Health System), 7.50%, 12/1/41
4,300,000

4,813,764

San Diego Association of Governments Rev., 5.00%, 11/15/26
2,750,000

3,377,687

San Diego Association of Governments Rev., 1.80%, 11/15/27
2,000,000

2,037,400

San Diego Community College District GO, 5.00%, 8/1/30
3,000,000

3,454,860

San Diego Community College District GO, 4.00%, 8/1/36
9,305,000

10,710,334

San Diego County Rev., (Sanford Burnham Prebys Medical Discovery Institute), 5.00%, 11/1/19
300,000

301,812

San Diego County Rev., (Sanford Burnham Prebys Medical Discovery Institute), 5.00%, 11/1/22
1,525,000

1,705,133

San Diego County Rev., (Sanford Burnham Prebys Medical Discovery Institute), 5.00%, 11/1/30
675,000

815,150

San Diego County Regional Airport Authority Rev., 5.00%, 7/1/21
2,000,000

2,066,220

San Diego County Regional Airport Authority Rev., 5.00%, 7/1/31
1,000,000

1,264,350

San Diego County Regional Airport Authority Rev., 5.00%, 7/1/32
850,000

1,068,816

San Diego County Regional Airport Authority Rev., 5.00%, 7/1/33
1,000,000

1,253,120

San Diego County Regional Airport Authority Rev., 5.00%, 7/1/34
750,000

773,948

San Diego County Regional Airport Authority Rev., 5.00%, 7/1/34
700,000

874,125

San Diego County Regional Airport Authority Rev., 5.00%, 7/1/35
1,000,000

1,244,520

San Diego County Regional Transportation Commission Rev., 5.00%, 4/1/21
5,940,000

6,327,704

San Diego County Water Authority Rev., 5.00%, 5/1/25
5,250,000

6,429,780

San Diego County Water Authority Rev., 5.00%, 5/1/26
2,390,000

2,921,177

San Diego County Water Authority Rev., 5.00%, 5/1/27
3,485,000

4,250,933

San Diego Public Facilities Financing Authority Rev., 5.25%, 5/15/20, Prerefunded at 100% of Par(2)
3,400,000

3,503,020

San Diego Public Facilities Financing Authority Rev., 5.00%, 8/1/21
2,000,000

2,156,380

San Diego Public Facilities Financing Authority Rev., 5.00%, 8/1/24
2,000,000

2,233,800

San Diego Public Facilities Financing Authority Rev., 5.00%, 5/15/28
10,000,000

12,623,400

San Diego Public Facilities Financing Authority Rev., (San Diego Water Utility Rev.), 5.00%, 8/1/38
5,000,000

6,390,200

San Diego Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/22
1,000,000

1,122,720


31


 
Principal Amount
Value
San Diego Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/23
$
1,000,000

$
1,162,880

San Diego Unified Port District Rev., 5.00%, 9/1/23
250,000

287,215

San Diego Unified Port District Rev., 5.00%, 9/1/24
500,000

572,325

San Diego Unified Port District Rev., 5.00%, 9/1/26
750,000

856,913

San Diego Unified School District GO, 5.00%, 7/1/33
1,320,000

1,680,875

San Francisco Bay Area Rapid Transit District Rev., 5.00%, 7/1/28
1,500,000

1,841,925

San Francisco City & County Airport Comm-San Francisco International Airport Rev., 5.00%, 5/3/21, Prerefunded at 100% of Par(2)
1,210,000

1,292,982

San Francisco City & County Airport Comm-San Francisco International Airport Rev., 5.00%, 5/3/21, Prerefunded at 100% of Par(2)
980,000

1,047,208

San Francisco City & County Airport Comm-San Francisco International Airport Rev., 5.00%, 5/1/22
1,000,000

1,105,340

San Francisco City & County Airport Comm-San Francisco International Airport Rev., 4.00%, 5/1/23, Prerefunded at 100% of Par(2)
1,625,000

1,807,114

San Francisco City & County Airport Comm-San Francisco International Airport Rev., 5.00%, 5/1/26
1,250,000

1,380,625

San Francisco City & County Airport Comm-San Francisco International Airport Rev., 5.00%, 5/1/29
5,060,000

5,378,325

San Francisco City & County Airport Comm-San Francisco International Airport Rev., 5.00%, 5/1/36
6,000,000

7,752,720

San Francisco City & County Public Utilities Commission Wastewater Rev., 5.00%, 10/1/21
5,000,000

5,420,250

San Francisco City & County Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 8/1/21
460,000

494,601

San Francisco City & County Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 8/1/26
425,000

503,230

San Francisco City & County Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 8/1/27
550,000

650,980

San Francisco City & County Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 8/1/28
370,000

437,466

San Francisco City & County Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 8/1/31
400,000

470,476

San Francisco City & County Redevelopment Financing Authority Tax Allocation, 6.00%, 8/1/20(2)
515,000

538,798

San Francisco City & County Redevelopment Financing Authority Tax Allocation, 6.625%, 2/1/21, Prerefunded at 100% of Par(2)
500,000

540,335

San Francisco Public Utilities Commission Water Rev., 5.00%, 5/1/20, Prerefunded at 100% of Par(2)
2,780,000

2,855,922

San Francisco Public Utilities Commission Water Rev., 5.00%, 11/1/28
1,055,000

1,282,975

San Gorgonio Memorial Health Care District GO, 5.00%, 8/1/25
850,000

1,008,287

San Joaquin Hills Transportation Corridor Agency Rev., 5.00%, 1/15/34
12,000,000

13,925,640

San Joaquin Hills Transportation Corridor Agency Rev., 5.00%, 1/15/44
1,000,000

1,149,240

San Joaquin Hills Transportation Corridor Agency Rev., 5.25%, 1/15/44
1,000,000

1,144,380

San Mateo Special Tax, 5.875%, 9/1/32
1,375,000

1,526,855

San Mateo Special Tax, 5.50%, 9/1/44
750,000

814,920

San Mateo Foster City Public Financing Authority Rev., (San Mateo Sewer Rev.), 5.00%, 8/1/34
1,050,000

1,395,366

San Mateo Foster City Public Financing Authority Rev., (San Mateo Sewer Rev.), 4.00%, 8/1/35
1,100,000

1,314,467


32


 
Principal Amount
Value
San Mateo Foster City Public Financing Authority Rev., (San Mateo Sewer Rev.), 5.00%, 8/1/36
$
1,885,000

$
2,487,163

Santa Barbara Financing Authority Rev., (Santa Barbara), 5.00%, 4/1/29
1,515,000

2,050,962

Santa Barbara Financing Authority Rev., (Santa Barbara), 5.00%, 4/1/31
845,000

1,130,019

Santa Barbara Financing Authority Rev., (Santa Barbara), 5.00%, 4/1/33
840,000

1,108,817

Santa Barbara Financing Authority Rev., (Santa Barbara), 5.00%, 4/1/35
2,035,000

2,662,716

Santa Barbara Financing Authority Rev., (Santa Barbara), 5.00%, 4/1/38
1,000,000

1,293,270

Santa Clara Electric Rev., 5.00%, 7/1/30
1,500,000

1,608,225

Santa Clara Valley Transportation Authority Rev., 5.00%, 4/1/20
4,000,000

4,096,400

Santa Cruz County Redevelopment Agency Tax Allocation, 5.00%, 9/1/35 (AGM)
1,500,000

1,809,135

Santa Monica Redevelopment Agency Tax Allocation, 5.875%, 7/1/42
1,000,000

1,084,130

Santa Rosa Wastewater Rev., Capital Appreciation, 0.00%, 9/1/24 (Ambac)(1)
9,000,000

8,359,740

Sonoma Community Development Agency Successor Agency Tax Allocation, 5.00%, 6/1/23 (NATL)
1,000,000

1,103,650

Sonoma Community Development Agency Successor Agency Tax Allocation, 5.00%, 6/1/25 (NATL)
1,390,000

1,668,125

Sonoma Community Development Agency Successor Agency Tax Allocation, 5.00%, 6/1/29 (NATL)
1,100,000

1,346,895

Sonoma Community Development Agency Successor Agency Tax Allocation, 5.00%, 6/1/33 (NATL)
1,325,000

1,597,725

South Bayside Waste Management Authority Rev., 5.00%, 9/1/33 (AGM)
450,000

592,358

South Bayside Waste Management Authority Rev., 5.00%, 9/1/36 (AGM)
2,110,000

2,740,911

South Bayside Waste Management Authority Rev., 5.00%, 9/1/40 (AGM)
2,515,000

3,229,134

South Orange County Public Financing Authority Special Tax, 5.00%, 8/15/20
1,100,000

1,142,229

South Orange County Public Financing Authority Special Tax, 5.00%, 8/15/21
1,500,000

1,615,710

South Orange County Public Financing Authority Special Tax, 5.00%, 8/15/23
1,200,000

1,384,224

South Orange County Public Financing Authority Special Tax, 5.00%, 8/15/25
1,125,000

1,378,642

South Orange County Public Financing Authority Special Tax, 5.00%, 8/15/26
1,000,000

1,260,460

South Orange County Public Financing Authority Special Tax, 5.00%, 8/15/27
1,155,000

1,491,278

South Orange County Public Financing Authority Special Tax, 5.00%, 8/15/28
1,340,000

1,770,984

Southern California Public Power Authority Rev., 5.00%, 7/1/20
4,000,000

4,138,160

Southern California Public Power Authority Rev., 5.00%, 7/1/21
2,780,000

2,990,029

Southern California Public Power Authority Rev., 5.00%, 11/1/28
835,000

1,048,359

Southern California Public Power Authority Rev., VRDN, 1.60%, (MUNIPSA plus 0.25%), 5/1/21
10,000,000

10,016,200

Southern California Water Replenishment District Rev., 5.00%, 8/1/21
1,000,000

1,078,780

Southern California Water Replenishment District Rev., 5.00%, 8/1/35
2,190,000

2,808,303


33


 
Principal Amount
Value
Southern California Water Replenishment District Rev., 5.00%, 8/1/37
$
2,170,000

$
2,757,679

State of California GO, 5.00%, 9/1/19
5,000,000

5,000,000

State of California GO, 5.25%, 10/1/20
5,000,000

5,016,200

State of California GO, 5.00%, 3/1/23
10,000,000

11,361,900

State of California GO, 5.00%, 12/1/26
1,045,000

1,215,680

State of California GO, 5.00%, 2/1/27
10,000,000

11,322,800

State of California GO, 4.00%, 11/1/27
2,000,000

2,443,560

State of California GO, 5.00%, 2/1/28
6,795,000

7,693,843

State of California GO, 5.00%, 11/1/29
2,625,000

3,033,922

State of California GO, 5.00%, 4/1/30
2,500,000

3,320,025

State of California GO, 5.00%, 4/1/31
1,350,000

1,782,513

State of California GO, 5.00%, 11/1/31
7,435,000

9,474,420

State of California GO, 5.00%, 4/1/32
3,000,000

3,945,300

State of California GO, 5.00%, 4/1/37
5,000,000

5,784,200

State of California GO, 5.00%, 4/1/38
3,500,000

4,515,700

State of California GO, 5.50%, 3/1/40
3,000,000

3,065,430

State of California GO, VRDN, 2.26%, (70% of the 1-month LIBOR plus 0.70%), 12/1/20
1,700,000

1,705,576

State of California GO, VRDN, 2.32%, (70% of the 1-month LIBOR plus 0.76%), 12/1/21
4,000,000

4,029,240

State of California GO, VRDN, 4.00%, 12/1/21
4,000,000

4,193,920

State of California GO, VRN, 2.50%, (MUNIPSA plus 1.15%), 5/1/20
1,920,000

1,923,859

State of California Department of Water Resources Rev., 5.00%, 12/1/19, Prerefunded at 100% of Par(2)
905,000

914,014

State of California Department of Water Resources Rev., 5.00%, 12/1/25
2,000,000

2,503,300

State of California Department of Water Resources Power Supply Rev., 5.00%, 5/1/20
10,000,000

10,267,100

State of California Department of Water Resources Power Supply Rev., 5.00%, 5/1/20, Prerefunded at 100% of Par(2)
1,860,000

1,910,164

State of California Department of Water Resources Power Supply Rev., 5.00%, 5/1/21
10,000,000

10,681,800

State of California Department of Water Resources Power Supply Rev., 5.00%, 5/1/21
1,140,000

1,170,985

State of California Department of Water Resources Power Supply Rev., 5.00%, 5/1/22
4,180,000

4,627,302

Stockton Public Financing Authority Rev., 5.00%, 9/1/22 (BAM)
1,410,000

1,573,264

Stockton Public Financing Authority Rev., 5.00%, 9/1/23 (BAM)
1,435,000

1,654,067

Stockton Public Financing Authority Rev., 5.00%, 9/1/24 (BAM)
1,090,000

1,295,694

Stockton Public Financing Authority Rev., 5.00%, 9/1/25 (BAM)
2,255,000

2,679,346

Stockton Public Financing Authority Rev., 5.00%, 9/1/26 (BAM)
1,495,000

1,773,922

Stockton Public Financing Authority Rev., 5.00%, 9/1/27 (BAM)
1,000,000

1,184,440

Stockton Public Financing Authority Rev., 6.25%, 10/1/38
1,500,000

1,800,435

Stockton Public Financing Authority Rev., 6.25%, 10/1/40
750,000

898,763

Stockton Public Financing Authority Rev., (Stockton Water Rev.), 5.00%, 10/1/30 (BAM)
1,000,000

1,294,350

Stockton Public Financing Authority Rev., (Stockton Water Rev.), 5.00%, 10/1/31 (BAM)
1,000,000

1,285,820

Stockton Public Financing Authority Special Tax, 4.00%, 9/2/20 (BAM)
575,000

592,198


34


 
Principal Amount
Value
Stockton Public Financing Authority Special Tax, 4.00%, 9/2/21 (BAM)
$
450,000

$
476,118

Stockton Public Financing Authority Special Tax, 4.00%, 9/2/22 (BAM)
940,000

1,021,310

Stockton Public Financing Authority Special Tax, 4.00%, 9/2/23 (BAM)
655,000

729,526

Stockton Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/29 (AGM)
1,500,000

1,856,850

Stockton Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/30 (AGM)
1,800,000

2,212,650

Stockton Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 9/1/31 (AGM)
1,825,000

2,228,489

Temecula Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 12/15/28 (AGM)
500,000

636,285

Temecula Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 12/15/29 (AGM)
1,155,000

1,466,977

Temecula Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 12/15/31 (AGM)
765,000

956,480

Temecula Redevelopment Agency Successor Agency Tax Allocation, 5.00%, 12/15/32 (AGM)
750,000

932,835

Temecula Valley Unified School District Financing Authority Special Tax, 5.00%, 9/1/19 (BAM)
265,000

265,000

Temecula Valley Unified School District Financing Authority Special Tax, 5.00%, 9/1/20 (BAM)
400,000

415,304

Temecula Valley Unified School District Financing Authority Special Tax, 5.00%, 9/1/21 (BAM)
515,000

555,185

Temecula Valley Unified School District Financing Authority Special Tax, 5.00%, 9/1/22 (BAM)
275,000

307,016

Tobacco Securitization Authority of Southern California Rev., (San Diego County Tobacco Asset Securitization Corp.), 5.00%, 6/1/37
2,250,000

2,259,562

Tobacco Securitization Authority of Southern California Rev., (San Diego County Tobacco Asset Securitization Corp.), 5.125%, 6/1/46
1,000,000

1,002,090

Tracy Community Facilities District Special Tax, (Tracy Community Facilities District No. 2016-01), 5.00%, 9/1/28
425,000

510,863

Tracy Community Facilities District Special Tax, (Tracy Community Facilities District No. 2016-01), 5.00%, 9/1/33
1,610,000

1,900,927

Tracy Community Facilities District Special Tax, (Tracy Community Facilities District No. 2016-01), 5.00%, 9/1/36
1,595,000

1,979,076

Tracy Community Facilities District Special Tax, (Tracy Community Facilities District No. 2016-01), 5.00%, 9/1/38
3,270,000

3,819,393

Tustin Community Facilities District Special Tax, (Tustin Community Facilities District No. 2006-1), 5.00%, 9/1/28
1,000,000

1,213,240

Tustin Community Facilities District Special Tax, (Tustin Community Facilities District No. 2006-1), 5.00%, 9/1/30
1,000,000

1,192,250

Tustin Unified School District Special Tax, 6.00%, 9/1/20, Prerefunded at 100% of Par(2)
2,000,000

2,100,880

University of California Rev., 5.00%, 5/15/20
1,405,000

1,409,215

University of California Rev., 5.00%, 5/15/22, Prerefunded at 100% of Par(2)
2,840,000

3,147,146

University of California Rev., 5.00%, 5/15/23, Prerefunded at 100% of Par(2)
1,395,000

1,600,860

University of California Rev., 4.00%, 5/15/26
2,415,000

2,903,820

University of California Rev., 5.00%, 5/15/26
3,310,000

3,673,041

University of California Rev., VRDN, 1.23%, 9/3/19
3,000,000

3,000,000

University of California Rev., VRDN, 1.25%, 9/3/19
4,800,000

4,800,000

University of California Rev., VRDN, 5.00%, 5/15/23
5,000,000

5,745,600


35


 
Principal Amount
Value
University of California Hastings College of the Law Rev., 5.00%, 4/1/31 (AGM)
$
1,045,000

$
1,295,748

Upland COP, (San Antonio Regional Hospital Obligated Group), 5.00%, 1/1/29
1,510,000

1,855,563

Upland COP, (San Antonio Regional Hospital Obligated Group), 5.00%, 1/1/32
1,475,000

1,786,033

Upland COP, (San Antonio Regional Hospital Obligated Group), 4.00%, 1/1/36
1,000,000

1,098,340

West Contra Costa Unified School District GO, 5.00%, 8/1/30
2,000,000

2,350,360

West Contra Costa Unified School District GO, 5.00%, 8/1/33
3,000,000

3,531,660

West Contra Costa Unified School District GO, 5.00%, 8/1/35
1,500,000

1,760,835

West Sacramento Financing Authority Special Tax, 5.00%, 9/1/19 (XLCA)
995,000

995,000

West Valley-Mission Community College District GO, 4.00%, 8/1/34
625,000

751,900

West Valley-Mission Community College District GO, 4.00%, 8/1/35
600,000

718,782

West Valley-Mission Community College District GO, 4.00%, 8/1/36
1,230,000

1,468,940

Western Riverside Water & Wastewater Financing Authority Rev., 5.00%, 9/1/24
1,685,000

1,984,138

Western Riverside Water & Wastewater Financing Authority Rev., 5.00%, 9/1/25
1,170,000

1,416,028

Yosemite Community College District GO, Capital Appreciation, 0.00%, 8/1/31(1)
2,210,000

1,732,574

 
 
1,924,655,611

Guam — 0.4%
 
 
Guam Government GO, 6.00%, 11/15/19
225,000

226,964

Guam Government Power Authority Rev., 5.00%, 10/1/19 (AGM)
1,000,000

1,002,730

Guam Government Power Authority Rev., 5.50%, 10/1/20, Prerefunded at 100% of Par(2)
2,150,000

2,251,265

Guam Government Waterworks Authority Rev., 5.00%, 7/1/21
300,000

317,433

Guam Government Waterworks Authority Rev., 5.00%, 7/1/22
325,000

353,730

Guam Government Waterworks Authority Rev., 5.00%, 7/1/23
500,000

558,850

Guam Government Waterworks Authority Rev., 5.00%, 7/1/24
350,000

401,118

Guam Government Waterworks Authority Rev., 5.00%, 7/1/25
350,000

409,640

Guam Government Waterworks Authority Rev., 5.00%, 7/1/26
500,000

596,875

Guam Government Waterworks Authority Rev., 5.00%, 7/1/27
900,000

1,092,645

 
 
7,211,250

TOTAL INVESTMENT SECURITIES — 99.6%
(Cost $1,793,985,861)
 
1,931,866,861

OTHER ASSETS AND LIABILITIES — 0.4%
 
8,558,133

TOTAL NET ASSETS — 100.0%
 
$
1,940,424,994



36


NOTES TO SCHEDULE OF INVESTMENTS
AGC
-
Assured Guaranty Corporation
AGM
-
Assured Guaranty Municipal Corporation
BAM
-
Build America Mutual Assurance Company
COP
-
Certificates of Participation
GA
-
Guaranty Agreement
GO
-
General Obligation
LIBOR
-
London Interbank Offered Rate
LOC
-
Letter of Credit
MUNIPSA
-
SIFMA Municipal Swap Index
NATL
-
National Public Finance Guarantee Corporation
SBBPA
-
Standby Bond Purchase Agreement
VRDN
-
Variable Rate Demand Note. The instrument may be payable upon demand and adjusts periodically based upon the terms set forth in the security's offering documents. The rate shown is effective at the period end and the reference rate and spread, if any, is indicated. The date of the demand feature is disclosed.
VRN
-
Variable Rate Note. The rate adjusts periodically based upon the terms set forth in the security’s offering documents. The rate shown is effective at the period end and the reference rate and spread, if any, is indicated.
XLCA
-
XL Capital Ltd.
(1)
Security is a zero-coupon bond. Zero-coupon securities are issued at a substantial discount from their value at maturity.
(2)
Escrowed to maturity in U.S. government securities or state and local government securities.
(3)
Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration, normally to qualified institutional investors. The aggregate value of these securities at the period end was $29,751,348, which represented 1.5% of total net assets.
(4)
When-issued security. The issue price and yield are fixed on the date of the commitment, but payment and delivery are scheduled for a future date.


See Notes to Financial Statements.

37


Statement of Assets and Liabilities
AUGUST 31, 2019
Assets
Investment securities, at value (cost of $1,793,985,861)
$
1,931,866,861

Cash
50,264

Receivable for investments sold
90,300

Receivable for capital shares sold
1,053,130

Interest receivable
20,126,423

 
1,953,186,978

 
 
Liabilities
 
Payable for investments purchased
9,646,175

Payable for capital shares redeemed
1,741,571

Accrued management fees
630,784

Distribution and service fees payable
17,185

Dividends payable
726,269

 
12,761,984

 
 
Net Assets
$
1,940,424,994

 
 
Net Assets Consist of:
 
Capital paid in
$
1,801,111,710

Distributable earnings
139,313,284

 
$
1,940,424,994

 
 
Net Assets
Shares Outstanding
Net Asset Value Per Share
Investor Class

$1,158,926,588

94,747,612

$12.23
I Class

$734,196,511

60,012,608

$12.23
Y Class

$11,227,989

917,893

$12.23
A Class

$21,616,700

1,766,478

$12.24*
C Class

$14,457,206

1,181,002

$12.24
*Maximum offering price $12.82 (net asset value divided by 0.955).
 

See Notes to Financial Statements.

38


Statement of Operations
 
YEAR ENDED AUGUST 31, 2019
Investment Income (Loss)
Income:
 
Interest
$
53,929,088

 
 
Expenses:
 
Management fees
7,008,574

Distribution and service fees:
 
A Class
54,424

C Class
149,095

Trustees' fees and expenses
126,496

Other expenses
1,823

 
7,340,412

 
 
Net investment income (loss)
46,588,676

 
 
Realized and Unrealized Gain (Loss)
 
Net realized gain (loss) on:
 
Investment transactions
2,534,776

Futures contract transactions
(613,373
)
 
1,921,403

 
 
Change in net unrealized appreciation (depreciation) on:
 
Investments
81,699,617

Futures contracts
(43,349
)
 
81,656,268

 
 
Net realized and unrealized gain (loss)
83,577,671

 
 
Net Increase (Decrease) in Net Assets Resulting from Operations
$
130,166,347


 
See Notes to Financial Statements.

39


Statement of Changes in Net Assets
 
YEARS ENDED AUGUST 31, 2019 AND AUGUST 31, 2018
Increase (Decrease) in Net Assets
August 31, 2019
August 31, 2018
Operations
Net investment income (loss)
$
46,588,676

$
46,822,808

Net realized gain (loss)
1,921,403

6,589,339

Change in net unrealized appreciation (depreciation)
81,656,268

(53,924,396
)
Net increase (decrease) in net assets resulting from operations
130,166,347

(512,249
)
 
 
 
Distributions to Shareholders
 
 
From earnings:
 
 
Investor Class
(29,171,085
)
(34,169,152
)
I Class
(17,228,314
)
(12,012,100
)
Y Class
(246,575
)
(194,186
)
A Class
(511,424
)
(552,479
)
C Class
(239,644
)
(278,809
)
Decrease in net assets from distributions
(47,397,042
)
(47,206,726
)
 
 
 
Capital Share Transactions
 
 
Net increase (decrease) in net assets from capital share transactions (Note 5)
142,187,251

142,225,369

 
 
 
Net increase (decrease) in net assets
224,956,556

94,506,394

 
 
 
Net Assets
 
 
Beginning of period
1,715,468,438

1,620,962,044

End of period
$
1,940,424,994

$
1,715,468,438



See Notes to Financial Statements.

40


Notes to Financial Statements
 
AUGUST 31, 2019

1. Organization

American Century California Tax-Free and Municipal Funds (the trust) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company and is organized as a Massachusetts business trust. California Intermediate-Term Tax-Free Bond Fund (the fund) is one fund in a series issued by the trust. The fund’s investment objective is to seek safety of principal and high current income that is exempt from federal and California income taxes.

The fund offers the Investor Class, I Class, Y Class, A Class and C Class. The A Class may incur an initial sales charge. The A Class and C Class may be subject to a contingent deferred sales charge.
 
2. Significant Accounting Policies

The following is a summary of significant accounting policies consistently followed by the fund in preparation of its financial statements. The fund is an investment company and follows accounting and reporting guidance in accordance with accounting principles generally accepted in the United States of America. This may require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from these estimates. Management evaluated the impact of events or transactions occurring through the date the financial statements were issued that would merit recognition or disclosure.

Investment Valuations — The fund determines the fair value of its investments and computes its net asset value per share at the close of regular trading (usually 4 p.m. Eastern time) on the New York Stock Exchange (NYSE) on each day the NYSE is open. The Board of Trustees has adopted valuation policies and procedures to guide the investment advisor in the fund’s investment valuation process and to provide methodologies for the oversight of the fund’s pricing function.
 
Fixed income securities are valued at the evaluated mean as provided by independent pricing services or at the mean of the most recent bid and asked prices as provided by investment dealers. Municipal securities are valued using market models that consider trade data, quotations from dealers and active market makers, relevant yield curve and spread data, creditworthiness, trade data or market information on comparable securities, and other relevant security specific information.
 
Exchange-traded futures contracts are valued at the settlement price as provided by the appropriate exchange.
 
If the fund determines that the market price for an investment is not readily available or the valuation methods mentioned above do not reflect an investment’s fair value, such investment is valued as determined in good faith by the Board of Trustees or its delegate, in accordance with policies and procedures adopted by the Board of Trustees. In its determination of fair value, the fund may review several factors including, but not limited to, market information regarding the specific investment or comparable investments and correlation with other investment types, futures indices or general market indicators. Circumstances that may cause the fund to use these procedures to value an investment include, but are not limited to: an investment has been declared in default or is distressed; trading in a security has been suspended during the trading day or a security is not actively trading on its principal exchange; prices received from a regular pricing source are deemed unreliable; or there is a foreign market holiday and no trading occurred.
 
The fund monitors for significant events occurring after the close of an investment’s primary exchange but before the fund’s net asset value per share is determined. Significant events may include, but are not limited to: corporate announcements and transactions; governmental action and political unrest that could impact a specific investment or an investment sector; or armed conflicts, natural disasters and similar events that could affect investments in a specific country or region.
 
Security Transactions — Security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes.
 
Investment Income — Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums.

41


Segregated Assets — In accordance with the 1940 Act, the fund segregates assets on its books and records to cover certain types of investment securities and other financial instruments. American Century Investment Management, Inc. (ACIM) (the investment advisor) monitors, on a daily basis, the securities segregated to ensure the fund designates a sufficient amount of liquid assets, marked-to-market daily. The fund may also receive assets or be required to pledge assets at the custodian bank or with a broker for collateral requirements.
 
Income Tax Status — It is the fund’s policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
 
Multiple Class — All shares of the fund represent an equal pro rata interest in the net assets of the class to which such shares belong, and have identical voting, dividend, liquidation and other rights and the same terms and conditions, except for class specific expenses and exclusive rights to vote on matters affecting only individual classes. Income, non-class specific expenses, and realized and unrealized capital gains and losses of the fund are allocated to each class of shares based on their relative net assets.
 
Distributions to Shareholders — Distributions from net investment income, if any, are declared daily and paid monthly. Distributions from net realized gains, if any, are generally declared and paid annually. The fund may elect to treat a portion of its payment to a redeeming shareholder, which represents the pro rata share of undistributed net investment income and net realized gains, as a distribution for federal income tax purposes (tax equalization).
 
Indemnifications — Under the trust’s organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.

3. Fees and Transactions with Related Parties

Certain officers and trustees of the trust are also officers and/or directors of American Century Companies, Inc. (ACC). The trust's investment advisor, ACIM, the trust's distributor, American Century Investment Services, Inc. (ACIS), and the trust's transfer agent, American Century Services, LLC, are wholly owned, directly or indirectly, by ACC.
 
Management Fees — The trust has entered into a management agreement with ACIM, under which ACIM provides the fund with investment advisory and management services in exchange for a single, unified management fee (the fee) per class. The agreement provides that all expenses of managing and operating the fund, except distribution and service fees, brokerage expenses, taxes, interest, fees and expenses of the independent trustees (including legal counsel fees), and extraordinary expenses, will be paid by ACIM. The fee is computed and accrued daily based on each class's daily net assets and paid monthly in arrears. The difference in the fee among the classes is a result of their separate arrangements for non-Rule 12b-1 shareholder services. It is not the result of any difference in advisory or custodial fees or other expenses related to the management of the fund’s assets, which do not vary by class. The fee consists of (1) an Investment Category Fee based on the daily net assets of the fund and certain other accounts managed by the investment advisor that are in the same broad investment category as the fund and (2) a Complex Fee based on the assets of all the funds in the American Century Investments family of funds.


42


The Investment Category Fee range, the Complex Fee range and the effective annual management fee for each class for the period ended August 31, 2019 are as follows:
 
Investment Category
Fee Range
Complex Fee
Range
Effective Annual Management Fee
Investor Class
0.1625%
to 0.2800%
0.2500% to 0.3100%
0.46%
I Class
0.0500% to 0.1100%
0.26%
Y Class
0.0200% to 0.0800%
0.23%
A Class
0.2500% to 0.3100%
0.46%
C Class
0.2500% to 0.3100%
0.46%

Distribution and Service Fees — The Board of Trustees has adopted a separate Master Distribution and Individual Shareholder Services Plan for each of the A Class and C Class (collectively the plans), pursuant to Rule 12b-1 of the 1940 Act. The plans provide that the A Class will pay ACIS an annual distribution and service fee of 0.25%. The plans provide that the C Class will pay ACIS an annual distribution and service fee of 1.00%, of which 0.25% is paid for individual shareholder services and 0.75% is paid for distribution services. The fees are computed and accrued daily based on each class’s daily net assets and paid monthly in arrears. The fees are used to pay financial intermediaries for distribution and individual shareholder services. Fees incurred under the plans during the period ended August 31, 2019 are detailed in the Statement of Operations.

Trustees’ Fees and Expenses — The Board of Trustees is responsible for overseeing the investment advisor’s management and operations of the fund. The trustees receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.

Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Trustees. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. During the period, the interfund purchases and sales were $60,065,000 and $72,010,000, respectively. The interfund transactions had no effect on the Statement of Operations in net realized gain (loss) on investment transactions.
 
4. Investment Transactions

Purchases and sales of investment securities, excluding short-term investments, for the period ended August 31, 2019 were $1,125,645,812 and $962,527,336, respectively.


43


5. Capital Share Transactions

Transactions in shares of the fund were as follows (unlimited number of shares authorized):
 
Year ended
August 31, 2019
Year ended
August 31, 2018
 
Shares
Amount
Shares
Amount
Investor Class
 
 
 
 
Sold
24,621,877

$
290,107,076

15,879,082

$
187,195,893

Issued in connection with reorganization (Note 10)
–

–

25,334,051

302,675,343

Issued in reinvestment of distributions
1,806,888

21,344,203

2,195,740

25,818,804

Redeemed
(29,478,055
)
(346,207,121
)
(45,318,617
)
(532,702,402
)
 
(3,049,290
)
(34,755,842
)
(1,909,744
)
(17,012,362
)
I Class
 
 
 
 
Sold
32,410,824

380,925,733

28,096,338

330,499,136

Issued in connection with reorganization (Note 10)
–

–

443,483

5,297,825

Issued in reinvestment of distributions
1,429,728

16,934,188

946,228

11,124,177

Redeemed
(18,892,785
)
(221,485,726
)
(15,944,536
)
(187,593,061
)
 
14,947,767

176,374,195

13,541,513

159,328,077

Y Class
 
 
 
 
Sold
468,794

5,525,634

271,037

3,197,701

Issued in reinvestment of distributions
20,808

246,575

16,518

194,165

Redeemed
(160,758
)
(1,888,292
)
(217,915
)
(2,558,868
)
 
328,844

3,883,917

69,640

832,998

A Class
 
 
 
 
Sold
538,059

6,357,771

442,136

5,196,744

Issued in connection with reorganization (Note 10)
–

–

534,573

6,390,877

Issued in reinvestment of distributions
42,195

499,252

45,522

535,485

Redeemed
(646,166
)
(7,687,880
)
(1,092,405
)
(12,888,216
)
 
(65,912
)
(830,857
)
(70,174
)
(765,110
)
C Class
 
 
 
 
Sold
159,709

1,883,932

65,745

776,974

Issued in connection with reorganization (Note 10)
–

–

304,020

3,635,324

Issued in reinvestment of distributions
17,581

207,725

20,136

236,967

Redeemed
(388,837
)
(4,575,819
)
(407,132
)
(4,807,499
)
 
(211,547
)
(2,484,162
)
(17,231
)
(158,234
)
Net increase (decrease)
11,949,862

$
142,187,251

11,614,004

$
142,225,369


6. Fair Value Measurements

The fund’s investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.

•
Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments.

•
Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars.

•
Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions).


44


The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments.
 
As of period end, the fund’s investment securities were classified as Level 2. The Schedule of Investments provides additional information on the fund’s portfolio holdings.

7. Derivative Instruments

Interest Rate Risk — The fund is subject to interest rate risk in the normal course of pursuing its investment objectives. The value of bonds generally declines as interest rates rise. A fund may enter into futures contracts based on a bond index or a specific underlying security. A fund may purchase futures contracts to gain exposure to increases in market value or sell futures contracts to protect against a decline in market value. Upon entering into a futures contract, a fund will segregate cash, cash equivalents or other appropriate liquid securities on its records in amounts sufficient to meet requirements. Subsequent payments (variation margin) are made or received daily, in cash, by a fund. The variation margin is equal to the daily change in the contract value and is recorded as unrealized gains and losses. A fund recognizes a realized gain or loss when the futures contract is closed or expires. Net realized and unrealized gains or losses occurring during the holding period of futures contracts are a component of net realized gain (loss) on futures contract transactions and change in net unrealized appreciation (depreciation) on futures contracts, respectively. One of the risks of entering into futures contracts is the possibility that the change in value of the contract may not correlate with the changes in value of the underlying securities. The fund's average notional exposure to interest rate risk derivative instruments held during the period was $19,350,000 futures contracts sold.
 
At period end, the fund did not have any derivative instruments disclosed on the Statement of Assets and Liabilities. For the year ended August 31, 2019, the effect of interest rate risk derivative instruments on the Statement of Operations was $(613,373) in net realized gain (loss) on futures contract transactions and $(43,349) in change in net unrealized appreciation (depreciation) on futures contracts.

8. Risk Factors

The fund focuses its investments in a single state and therefore may have more exposure to credit risk related to the state of California than a fund with a broader geographical diversification.

9. Federal Tax Information

The tax character of distributions paid during the years ended August 31, 2019 and August 31, 2018 were as follows:
 
2019
2018
Distributions Paid From
 
 
Exempt income
$
46,467,231

$
47,206,726

Long-term capital gains
$
929,811

—


The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
 
As of period end, the federal tax cost of investments and the components of distributable earnings on a tax-basis were as follows:
Federal tax cost of investments
$
1,793,995,159

Gross tax appreciation of investments
$
137,873,872

Gross tax depreciation of investments
(2,170
)
Net tax appreciation (depreciation) of investments
$
137,871,702

Other book-to-tax adjustments
$
(264,391
)
Undistributed exempt income
—

Accumulated long-term gains
$
1,705,973


The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable
primarily to the tax deferral of losses on wash sales.

45


10. Reorganization

On June 14, 2017, the Board of Trustees approved an agreement and plan of reorganization (the reorganization), whereby the net assets of California Long-Term Tax-Free Fund, one fund in a series issued by the trust, were transferred to California Intermediate-Term Tax-Free Bond Fund in exchange for shares of California Intermediate-Term Tax-Free Bond Fund. The purpose of the transaction was to combine two funds with substantially similar investment objectives and strategies. The financial statements and performance history of California Intermediate-Term Tax-Free Bond Fund survived after the reorganization. The reorganization was effective at the close of the NYSE on October 20, 2017.

The reorganization was accomplished by a tax-free exchange of shares. On October 20, 2017, California Long-Term Tax-Free Fund exchanged its shares for shares of California Intermediate-Term Tax-Free Bond Fund as follows:
Original Fund/Class
Shares
Exchanged
New Fund/Class
Shares
Received
California Long-Term Tax-Free Fund – Investor Class
26,325,383

California Intermediate-Term Tax-Free Bond Fund – Investor Class
25,334,051

California Long-Term Tax-Free Fund – I Class
460,837

California Intermediate-Term Tax-Free Bond Fund – I Class
443,483

California Long-Term Tax-Free Fund – A Class
555,974

California Intermediate-Term Tax-Free Bond Fund – A Class
534,573

California Long-Term Tax-Free Fund – C Class
316,180

California Intermediate-Term Tax-Free Bond Fund – C Class
304,020


The net assets of California Long-Term Tax-Free Fund and California Intermediate-Term Tax-Free Bond Fund immediately before the reorganization were $317,999,369 and $1,626,564,192, respectively. California Long-Term Tax-Free Fund's unrealized appreciation of $24,755,277 was combined with that of California Intermediate-Term Tax-Free Bond Fund. Immediately after the reorganization, the combined net assets were $1,944,563,561.

Assuming the reorganization had been completed on September 1, 2017, the beginning of the annual reporting period, the pro forma results of operations for the period ended August 31, 2018 are as follows:
Net investment income (loss)
$
48,264,905

Net realized and unrealized gain (loss)
(48,113,885
)
Net decrease in net assets resulting from operations
$
151,020


Because the combined investment portfolios have been managed as a single integrated portfolio since the reorganization was completed, it is not practicable to separate the amounts of revenue and earnings of California Long-Term Tax-Free Fund that have been included in the fund’s Statement of Operations since October 20, 2017.

11. Recently Issued Accounting Standards
In March 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2017-08, “Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities” (ASU 2017-08). ASU 2017-08 amends the amortization period for certain purchased callable debt securities held at a premium, shortening such period to the earliest call date. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Management is currently evaluating the impact that adopting ASU 2017-08 will have on the financial statements.

46


Financial Highlights
For a Share Outstanding Throughout the Years Ended August 31 (except as noted)
Per-Share Data
Ratios and Supplemental Data
 
 
Income From Investment Operations:
Distributions From:
 
 
Ratio to Average Net Assets of:
 
 
 
Net Asset
Value,
Beginning
of Period
Net
Investment Income
(Loss)(1)
Net
Realized and Unrealized
Gain (Loss)
Total From Investment Operations
Net
Investment Income
Net
Realized Gains
Total Distributions
Net Asset
Value,
End of Period
Total
Return(2)
Operating Expenses
Net
Investment Income
(Loss)
Portfolio Turnover
Rate
Net Assets,
End of Period
(in thousands)
Investor Class
2019
$11.69
0.30
0.55
0.85
(0.30)
(0.01)
(0.31)
$12.23
7.29%
0.47%
2.56%
54%

$1,158,927

2018
$12.00
0.30
(0.31)
(0.01)
(0.30)
—
(0.30)
$11.69
0.03%
0.47%
2.56%
52%

$1,143,719

2017
$12.24
0.29
(0.24)
0.05
(0.29)
—
(0.29)
$12.00
0.46%
0.47%
2.43%
52%

$1,196,600

2016
$11.85
0.28
0.39
0.67
(0.28)
—
(0.28)
$12.24
5.74%
0.47%
2.34%
23%

$1,301,751

2015
$11.94
0.29
(0.09)
0.20
(0.29)
—
(0.29)
$11.85
1.68%
0.47%
2.42%
30%

$1,216,943

I Class
2019
$11.70
0.32
0.55
0.87
(0.33)
(0.01)
(0.34)
$12.23
7.59%
0.27%
2.76%
54%

$734,197

2018
$12.00
0.32
(0.29)
0.03
(0.33)
—
(0.33)
$11.70
0.23%
0.27%
2.76%
52%

$527,123

2017
$12.24
0.31
(0.24)
0.07
(0.31)
—
(0.31)
$12.00
0.66%
0.27%
2.63%
52%

$378,363

2016
$11.85
0.31
0.39
0.70
(0.31)
—
(0.31)
$12.24
5.95%
0.27%
2.54%
23%

$298,010

2015
$11.94
0.31
(0.09)
0.22
(0.31)
—
(0.31)
$11.85
1.88%
0.27%
2.62%
30%

$232,892

Y Class
2019
$11.70
0.33
0.54
0.87
(0.33)
(0.01)
(0.34)
$12.23
7.53%
0.24%
2.79%
54%

$11,228

2018
$12.00
0.33
(0.30)
0.03
(0.33)
—
(0.33)
$11.70
0.26%
0.24%
2.79%
52%

$6,889

2017(3)
$11.78
0.12
0.23
0.35
(0.13)
—
(0.13)
$12.00
2.94%
0.24%(4)
2.62%(4)
52%(5)

$6,233




For a Share Outstanding Throughout the Years Ended August 31 (except as noted)
Per-Share Data
Ratios and Supplemental Data
 
 
Income From Investment Operations:
Distributions From:
 
 
Ratio to Average Net Assets of:
 
 
 
Net Asset
Value,
Beginning
of Period
Net
Investment Income
(Loss)(1)
Net
Realized and Unrealized
Gain (Loss)
Total From Investment Operations
Net
Investment Income
Net
Realized Gains
Total Distributions
Net Asset
Value,
End of Period
Total
Return(2)
Operating Expenses
Net
Investment Income
(Loss)
Portfolio Turnover
Rate
Net Assets,
End of Period
(in thousands)
A Class
2019
$11.70
0.27
0.55
0.82
(0.27)
(0.01)
(0.28)
$12.24
7.11%
0.72%
2.31%
54%

$21,617

2018
$12.00
0.27
(0.30)
(0.03)
(0.27)
—
(0.27)
$11.70
(0.22)%
0.72%
2.31%
52%

$21,438

2017
$12.24
0.26
(0.24)
0.02
(0.26)
—
(0.26)
$12.00
0.21%
0.72%
2.18%
52%

$22,836

2016
$11.85
0.25
0.39
0.64
(0.25)
—
(0.25)
$12.24
5.47%
0.72%
2.09%
23%

$47,126

2015
$11.94
0.26
(0.09)
0.17
(0.26)
—
(0.26)
$11.85
1.42%
0.72%
2.17%
30%

$39,308

C Class
2019
$11.70
0.18
0.55
0.73
(0.18)
(0.01)
(0.19)
$12.24
6.22%
1.47%
1.56%
54%

$14,457

2018
$12.01
0.18
(0.31)
(0.13)
(0.18)
—
(0.18)
$11.70
(0.96)%
1.47%
1.56%
52%

$16,299

2017
$12.24
0.17
(0.23)
(0.06)
(0.17)
—
(0.17)
$12.01
(0.46)%
1.47%
1.43%
52%

$16,929

2016
$11.86
0.16
0.38
0.54
(0.16)
—
(0.16)
$12.24
4.60%
1.47%
1.34%
23%

$21,058

2015
$11.95
0.17
(0.09)
0.08
(0.17)
—
(0.17)
$11.86
0.67%
1.47%
1.42%
30%

$16,531





Notes to Financial Highlights
(1)
Computed using average shares outstanding throughout the period.
(2)
Total returns are calculated based on the net asset value of the last business day and do not reflect applicable sales charges, if any. Total returns for periods less than one year are not annualized.
(3)
April 10, 2017 (commencement of sale) through August 31, 2017.
(4)
Annualized.
(5)
Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended August 31, 2017.

See Notes to Financial Statements.



Report of Independent Registered Public Accounting Firm

To the Board of Trustees of American Century California Tax-Free and Municipal Funds and Shareholders of California Intermediate-Term Tax-Free Bond Fund

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of California Intermediate-Term Tax-Free Bond Fund (one of the funds constituting American Century California Tax-Free and Municipal Funds, referred to hereafter as the "Fund") as of August 31, 2019, the related statement of operations for the year ended August 31, 2019, the statement of changes in net assets for each of the two years in the period ended August 31, 2019, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of August 31, 2019, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended August 31, 2019 and the financial highlights for each of the periods indicated in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of August 31, 2019 by correspondence with the custodian and brokers. We believe that our audits provide a reasonable basis for our opinion.


/s/ PricewaterhouseCoopers LLP
Kansas City, Missouri
October 18, 2019

We have served as the auditor of one or more investment companies in American Century Investments since 1997.

50


Management

Board of Trustees

The individuals listed below serve as trustees of the funds. Each trustee will continue to serve in this capacity until death, retirement, resignation or removal from office. The board has adopted a mandatory retirement age for trustees who are not “interested persons,” as that term is defined in the Investment Company Act (independent trustees). Independent trustees shall retire on December 31 of the year in which they reach their 75th birthday; provided, however, that on or after January 1, 2022, independent trustees shall retire on December 31 of the year in which they reach their 76th birthday.
Mr. Thomas is an “interested person” because he currently serves as President and Chief Executive Officer of American Century Companies, Inc. (ACC), the parent company of American Century Investment Management, Inc. (ACIM or the advisor). The other trustees (more than three-fourths of the total number) are independent. They are not employees, directors or officers of, and have no financial interest in, ACC or any of its wholly owned, direct or indirect, subsidiaries, including ACIM, American Century Investment Services, Inc. (ACIS) and American Century Services, LLC (ACS), and they do not have any other affiliations, positions or relationships that would cause them to be considered “interested persons” under the Investment Company Act. The trustees serve in this capacity for eight (in the case of Jonathan S. Thomas, 16; and Ronald J. Gilson, 9) registered investment companies in the American Century Investments family of funds.
The following table presents additional information about the trustees. The mailing address for each trustee other than Mr. Thomas is 1665 Charleston Road, Mountain View, California 94043. The mailing address for Mr. Thomas is 4500 Main Street, Kansas City, Missouri 64111.
Name
(Year of Birth)
Position(s) Held with Funds
Length of Time Served
Principal Occupation(s) During Past 5 Years
Number of American Century Portfolios Overseen by Trustee
Other Directorships Held During Past 5 Years
Independent Trustees


Tanya S. Beder
(1955)
Trustee
Since 2011
Chairman and CEO, SBCC Group Inc. (independent advisory services) (2006 to present)
44
CYS
Investments,
Inc.; Nabors
Industries Ltd.
Jeremy I. Bulow
(1954)
Trustee
Since 2011
Professor of Economics, Stanford University, Graduate School of Business (1979 to present)
44
None
Anne Casscells
(1958)
Trustee
Since 2016
Co-Chief Executive Officer and Chief Investment Officer, Aetos Alternatives Management (investment advisory firm) (2001 to present); Lecturer in Accounting, Stanford University, Graduate School of Business (2009 to 2017)
44
None
Ronald J. Gilson
(1946)
Trustee and Chairman of the Board
Since 1995
(Chairman since 2005)
Charles J. Meyers Professor of Law and Business, Emeritus, Stanford Law School (1979 to 2016); Marc and Eva Stern Professor of Law and Business, Columbia University School of Law (1992 to present)
49
None

51


Name
(Year of Birth)
Position(s) Held with Funds
Length of Time Served
Principal Occupation(s) During Past 5 Years
Number of American Century Portfolios Overseen by Trustee
Other Directorships Held During Past 5 Years
Independent Trustees


Frederick L. A. Grauer
(1946)
Trustee
Since 2008
Senior Advisor, Credit Sesame, Inc. (credit monitoring firm) (2018 to present); Senior Advisor, Course Hero (an educational technology company) (2015 to present); Senior Advisor, iShares by BlackRock, Inc. (investment management firm) (2013 to 2015)
44
None
Jonathan D. Levin
(1972)
Trustee
Since 2016
Philip H. Knight Professor and Dean, Graduate School of Business, Stanford University (2016 to present); Professor, Stanford University, (2000 to present); Chair, Department of Economics, Stanford University (2011 to 2014)
44
None
Peter F. Pervere
(1947)
Trustee
Since 2007
Retired
44
None
John B. Shoven
(1947)
Trustee
Since 2002
Charles R. Schwab Professor of Economics, Stanford University (1973 to present)
44
Cadence Design Systems; Exponent; Financial Engines
Interested Trustee


Jonathan S. Thomas
(1963)
Trustee and President
Since 2007
President and Chief Executive Officer, ACC (2007 to present). Also serves as Chief Executive Officer, ACS; Executive Vice President, ACIM; Director, ACC, ACIM and other ACC subsidiaries
116
BioMed Valley Discoveries, Inc.

The Statement of Additional Information has additional information about the fund's trustees and is available without charge, upon request, by calling 1-800-345-2021.


52


Officers

The following table presents certain information about the executive officers of the funds. Each officer serves as an officer for 16 (in the case of Robert J. Leach, 15) investment companies in the American Century family of funds. No officer is compensated for his or her service as an officer of the funds. The listed officers are interested persons of the funds and are appointed or re-appointed on an annual basis. The mailing address for each of the officers listed below is 4500 Main Street, Kansas City, Missouri 64111.
Name
(Year of Birth)
Offices with the Funds
Principal Occupation(s) During the Past Five Years
Jonathan S. Thomas
(1963)
Trustee and President since 2007
President and Chief Executive Officer, ACC (2007 to present). Also serves as Chief Executive Officer, ACS; Executive Vice President, ACIM; Director, ACC, ACIM and other ACC subsidiaries
R. Wes Campbell
(1974)
Chief Financial Officer and Treasurer since 2018
Investment Operations and Investment Accounting, ACS (2000 to present)
Amy D. Shelton
(1964)
Chief Compliance Officer and Vice President since 2014
Chief Compliance Officer, American Century funds, (2014 to present); Chief Compliance Officer, ACIM (2014 to present); Chief Compliance Officer, ACIS (2009 to present). Also serves as Vice President, ACIS
Charles A. Etherington
(1957)
General Counsel since 2007 and Senior Vice President since 2006
Attorney, ACC (1994 to present); Vice President, ACC (2005 to present); General Counsel, ACC (2007 to present). Also serves as General Counsel, ACIM, ACS, ACIS and other ACC subsidiaries; and Senior Vice President, ACIM and ACS
C. Jean Wade
(1964)
Vice President since 2012
Senior Vice President, ACS (2017 to present); Vice President, ACS (2000 to 2017)
Robert J. Leach
(1966)
Vice President since 2006
Vice President, ACS (2000 to present)
David H. Reinmiller
(1963)
Vice President since 2000
Attorney, ACC (1994 to present). Also serves as Vice President, ACIM and ACS
Ward D. Stauffer
(1960)
Secretary since 2005
Attorney, ACC (2003 to present)


53


Approval of Management Agreement


At a meeting held on June 19, 2019, the Fund’s Board of Trustees (the "Board") unanimously approved the renewal of the management agreement pursuant to which American Century Investment Management, Inc. (the “Advisor”) acts as the investment advisor for the Fund. Under Section 15(c) of the Investment Company Act, contracts for investment advisory services are required to be reviewed, evaluated, and approved by a majority of a fund’s directors/trustees, including a majority of the independent Trustees, each year. The Board regards this annual evaluation and renewal as one of its most important responsibilities.

The independent Trustees have memorialized a statement regarding the relationship between their ongoing obligations to oversee and evaluate the performance of the Advisor and their annual consideration of renewal of the management agreement. In that statement, the independent Trustees noted that their assessment of the Advisor’s performance is an ongoing process that takes place over the entire year and is informed by all of the extensive information that the Board and its committees receive and consider over time. This information, together with the additional materials provided specifically in connection with the review, are central to the Board’s assessment of the Advisor’s performance and its determination whether to renew the Fund’s management agreement.

Prior to its consideration of the renewal of the management agreement, the Board requested and reviewed extensive data and analysis relating to the proposed renewal. This information and analysis was compiled by the Advisor and certain independent providers of evaluation data concerning the Fund and the services provided to the Fund by the Advisor.

In connection with its consideration of the renewal of the management agreement, the Board’s review and evaluation of the services provided by the Advisor included, but was not limited to, the following:

•
the nature, extent, and quality of investment management, shareholder services, and other services provided to the Fund;
•
the wide range of other programs and services the Advisor provides to the Fund and its shareholders on a routine and non-routine basis;
•
the investment performance of the Fund, including data comparing the Fund’s performance to appropriate benchmarks and/or a peer group of other mutual funds with similar investment objectives and strategies;
•
the cost of owning the Fund compared to the cost of owning similar funds;
•
the compliance policies, procedures, and regulatory experience of the Advisor and the Fund’s service providers;
•
financial data showing the cost of services provided to the Fund, the profitability of the Fund to the Advisor, and the overall profitability of the Advisor;
•
strategic plans of the Advisor;
•
any economies of scale associated with the Advisor’s management of the Fund and other accounts;
•
services provided and charges to the Advisor’s other investment management clients;
•
acquired fund fees and expenses;
•
payments and practices in connection with financial intermediaries holding shares of the Fund and the services provided by intermediaries in connection therewith; and
•
any collateral benefits derived by the Advisor from the management of the Fund.

In keeping with its practice, the Board held two in-person meetings to review and discuss the information provided in response to their request and held active discussions with the Advisor

54


regarding the renewal of the management agreement. The independent Trustees had the benefit of the advice of their independent counsel throughout the process.

Factors Considered

The Trustees considered all of the information provided by the Advisor, the independent data providers, and the independent Trustees’ independent counsel in connection with the approval. They determined that the information was sufficient for them to evaluate the management agreement for the Fund. In connection with their review, the Trustees did not identify any single factor as being all-important or controlling and each Trustee may have attributed different levels of importance to different factors. In deciding to renew the management agreement, the Board based its decision on a number of factors, including the following:

Nature, Extent and Quality of Services — Generally. Under the management agreement, the Advisor is responsible for providing or arranging for all services necessary for the operation of the Fund. The Board noted that the Advisor provides or arranges at its own expense a wide variety of services including:

•
constructing and designing the Fund
•
portfolio research and security selection
•
initial capitalization/funding
•
securities trading
•
Fund administration
•
custody of Fund assets
•
daily valuation of the Fund’s portfolio
•
shareholder servicing and transfer agency, including shareholder confirmations, recordkeeping, and communications
•
legal services (except the independent Trustees’ counsel)
•
regulatory and portfolio compliance
•
financial reporting
•
marketing and distribution (except amounts paid by the Fund under Rule 12b-1 plans)

The Board noted that many of these services have expanded over time in terms of both quantity and complexity in response to shareholder demands, competition in the industry, changing distribution channels, and the changing regulatory environment.

Investment Management Services. The nature of the investment management services provided to the Fund is quite complex and allows Fund shareholders access to professional money management, instant diversification of their investments within an asset class, the opportunity to easily diversify among asset classes by investing in or exchanging among various American Century Investments funds, and liquidity. In evaluating investment performance, the Board expects the Advisor to manage the Fund in accordance with its investment objectives and approved strategies. Further, the Trustees recognize that the Advisor has an obligation to seek the best execution of fund trades. In providing these services, the Advisor utilizes teams of investment professionals (portfolio managers, analysts, research assistants, and securities traders) who require extensive information technology, research, training, compliance, and other systems to conduct their business. The Board, directly and through its Portfolio Committee, regularly reviews investment performance information for the Fund, together with comparative information for appropriate benchmarks and/or peer groups of similarly-managed funds, over different time horizons. The Trustees also review investment performance information during the management agreement renewal process. If performance concerns are identified, the Fund receives special reviews until performance improves, during which the Board discusses with the Advisor the reasons for such results (e.g., market conditions, security selection) and any efforts being undertaken to improve performance. The Fund’s performance was above its benchmark for the three-, five, and ten-year periods and below its benchmark for the one-year period reviewed by the

55


Board. The Board found the investment management services provided by the Advisor to the Fund to be satisfactory and consistent with the management agreement.

Shareholder and Other Services. Under the management agreement, the Advisor provides the Fund with a comprehensive package of transfer agency, shareholder, and other services. The Board, directly and through various committees of the Board, regularly reviews reports and evaluations of such services at its regular meetings. These reports include, but are not limited to, information regarding the operational efficiency and accuracy of the shareholder and transfer agency services provided, staffing levels, shareholder satisfaction, technology support (including cyber security), new products and services offered to Fund shareholders, securities trading activities, portfolio valuation services, auditing services, and legal and operational compliance activities. The Board found the services provided by the Advisor to the Fund under the management agreement to be competitive and of high quality.

Costs of Services and Profitability. The Advisor provides detailed information concerning its cost of providing various services to the Fund, its profitability in managing the Fund, its overall profitability, and its financial condition. The Trustees have reviewed with the Advisor the methodology used to prepare this financial information. This information is considered in evaluating the Advisor’s financial condition, its ability to continue to provide services under the management agreement, and the reasonableness of the current management fee. The Board concluded that the Advisor’s profits were reasonable in light of the services provided to the Fund.

Ethics. The Board generally considers the Advisor’s commitment to providing quality services to shareholders and to conducting its business ethically. They noted that the Advisor’s practices generally meet or exceed industry best practices.

Economies of Scale. The Board also reviewed information provided by the Advisor regarding the possible existence of economies of scale in connection with the management of the Fund. The Board concluded that economies of scale are difficult to measure and predict with precision, especially on a fund-by-fund basis. The Board concluded that the Advisor is appropriately sharing economies of scale through its competitive fee structure, offering competitive fees from fund inception, and through reinvestment in its business to provide shareholders enhanced and expanded services.

Comparison to Other Funds’ Fees. The management agreement provides that the Fund pays the Advisor a single, all-inclusive (or unified) management fee for providing all services necessary for the management and operation of the Fund, other than brokerage expenses, expenses attributable to short sales, taxes, interest, extraordinary expenses, fees and expenses of the Fund’s independent Trustees (including their independent legal counsel), and expenses incurred in connection with the provision of shareholder services and distribution services under a plan adopted pursuant to Rule 12b-1 under the Investment Company Act. Under the unified fee structure, the Advisor is responsible for providing all investment advisory, custody, audit, administrative, compliance, recordkeeping, marketing, and shareholder services, or arranging and supervising third parties to provide such services. By contrast, most other funds are charged a variety of fees, including an investment advisory fee, a transfer agency fee, an administrative fee, distribution charges, and other expenses. Other than their investment advisory fees and any applicable Rule 12b-1 distribution fees, all other components of the total fees charged by these other funds may be increased without shareholder approval. The Board believes the unified fee structure is a benefit to Fund shareholders because it clearly discloses to shareholders the cost of owning Fund shares, and, since the unified fee cannot be increased without a vote of Fund shareholders, it shifts to the Advisor the risk of increased costs of operating the Fund and provides a direct incentive to minimize administrative inefficiencies. Part of the Board’s analysis of fee levels involves reviewing certain evaluative data compiled by an independent provider and comparing the Fund’s unified fee to the total expense ratio of peer funds. The unified fee charged to shareholders of the Fund was below the median of the total expense ratios of the Fund’s peer group. The Board

56


concluded that the management fee paid by the Fund to the Advisor under the management agreement is reasonable in light of the services provided to the Fund.

Comparison to Fees and Services Provided to Other Clients of the Advisor. The Board also requested and received information from the Advisor concerning the nature of the services, fees, costs, and profitability of its advisory services to advisory clients other than the Fund. They observed that these varying types of client accounts require different services and involve different regulatory and entrepreneurial risks than the management of the Fund. The Board analyzed this information and concluded that the fees charged and services provided to the Fund were reasonable by comparison.

Payments to Intermediaries. The Trustees also requested and received a description of payments made to intermediaries by the Fund and the Advisor and services provided by intermediaries. These payments include various payments made by the Fund or the Advisor to different types of intermediaries and recordkeepers for distribution and service activities provided for the Fund. The Trustees reviewed such information and received representations from the Advisor that all such payments by the Fund were made pursuant to the Fund’s Rule 12b-1 Plan and that all such payments by the Advisor were made from the Advisor’s resources and reasonable profits. The Board found such payments to be reasonable in scope and purpose.

Collateral or “Fall-Out” Benefits Derived by the Advisor. The Board considered the existence of collateral benefits the Advisor may receive as a result of its relationship with the Fund. The Board noted that the Advisor’s primary business is managing mutual funds and it generally does not use fund or shareholder information to generate profits in other lines of business, and therefore does not derive any significant collateral benefits from them. The Board noted that the Advisor may receive proprietary research from broker-dealers that execute fund portfolio transactions. The Board also determined that the Advisor is able to provide investment management services to certain clients other than the Fund, at least in part, due to its existing infrastructure built to serve the fund complex. The Board noted that the assets of those other accounts are, where applicable, included with the assets of the Fund to determine breakpoints in the management fee schedule.

Existing Relationship. The Board also considered whether there was any reason for not continuing the existing arrangement with the Advisor. In this regard, the Board was mindful of the potential disruptions of the Fund’s operations and various risks, uncertainties, and other effects that could occur as a result of a decision not to continue such relationship. In particular, the Board recognized that most shareholders have invested in the Fund on the strength of the Advisor’s industry standing and reputation and in the expectation that the Advisor will have a continuing role in providing advisory services to the Fund.

Conclusion of the Trustees. As a result of this process, the Board, including all of the independent Trustees and assisted by the advice of independent legal counsel, taking into account all of the factors discussed above and the information provided by the Advisor and others in connection with its review and throughout the year, concluded that the management agreement between the Fund and the Advisor is fair and reasonable in light of the services provided and should be renewed.



57


Additional Information
 
Retirement Account Information

As required by law, distributions you receive from certain retirement accounts are subject to federal income tax withholding, unless you elect not to have withholding apply*. Tax will be withheld on the total amount withdrawn even though you may be receiving amounts that are not subject to withholding, such as nondeductible contributions. In such case, excess amounts of withholding could occur. You may adjust your withholding election so that a greater or lesser amount will be withheld.

If you don’t want us to withhold on this amount, you must notify us to not withhold the federal income tax. You may notify us in writing or in certain situations by telephone or through other electronic means. For systematic withdrawals, your withholding election will remain in effect until revoked or changed by filing a new election. You have the right to revoke your election at any time and change your withholding percentage for future distributions.

Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.

State tax will be withheld if, at the time of your distribution, your address is within one of the mandatory withholding states and you have federal income tax withheld (or as otherwise required by state law). State taxes will be withheld from your distribution in accordance with the respective state rules.

*Some 403(b), 457 and qualified retirement plan distributions may be subject to 20% mandatory withholding, as they are subject to special tax and withholding rules.  Your plan administrator or plan sponsor is required to provide you with a special tax notice explaining those rules at the time you request a distribution.  If applicable, federal and/or state taxes may be withheld from your distribution amount.


Proxy Voting Policies
 
Descriptions of the principles and policies that the fund's investment advisor uses in exercising the voting rights associated with the securities purchased and/or held by the fund are available without charge, upon request, by calling 1-800-345-2021 or visiting the "About Us" page of American Century Investments’ website at americancentury.com. A description of the policies is also available on the Securities and Exchange Commission’s website at sec.gov. Information regarding how the investment advisor voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the "About Us" page at americancentury.com. It is also available at sec.gov.
 

Quarterly Portfolio Disclosure

The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q or as an exhibit to its reports on Form N-PORT. The fund’s Forms N-Q and Form N-PORT reports are available on the SEC’s website at sec.gov. The fund also makes its complete schedule of portfolio holdings for the most recent quarter of its fiscal year available on its website at americancentury.com and, upon request, by calling 1-800-345-2021.

58


Other Tax Information

The following information is provided pursuant to provisions of the Internal Revenue Code.

The fund hereby designates $1,110,835, or up to the maximum amount allowable, as long-term capital gain distributions (20% rate gain distributions) for the fiscal year ended August 31, 2019.

The fund designates $46,126,798 as exempt interest dividends for the fiscal year ended August 31, 2019.

The fund utilized earnings and profits of $181,024 distributed to shareholders on redemption of shares as part of the dividends paid deduction (tax equalization).






59


Notes

60


Notes


61


Notes


62


Notes


63


Notes


64







acihorizblkd27.jpg
 
 
 
 
Contact Us
americancentury.com
 
Automated Information Line
1-800-345-8765
 
Investor Services Representative
1-800-345-2021
or 816-531-5575
 
Investors Using Advisors
1-800-378-9878
 
Business, Not-For-Profit, Employer-Sponsored Retirement Plans
1-800-345-3533
 
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1-800-345-6488
 
Telecommunications Relay Service for the Deaf
711
 
 
 
 
American Century California Tax-Free and Municipal Funds
 
 
 
 
Investment Advisor:
American Century Investment Management, Inc.
Kansas City, Missouri
 
 
 
 
This report and the statements it contains are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus.
 
 
 
 
©2019 American Century Proprietary Holdings, Inc. All rights reserved.
CL-ANN-90327 1910
 






acihorizblkd27.jpg
                  

 
 
 
Annual Report
 
 
 
August 31, 2019
 
 
 
California Tax-Free Money Market Fund
 
Investor Class (BCTXX)






























Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the fund’s shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the fund or your financial intermediary electronically by calling or sending an email request to your appropriate contacts as listed on the back cover of this report.

You may elect to receive all future reports in paper free of charge. You can inform the fund or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by calling or sending an email request to your appropriate contacts as listed on the back cover of this report. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.







Table of Contents
 
President’s Letter

Performance
3

Fund Characteristics

Shareholder Fee Example

Schedule of Investments

Statement of Assets and Liabilities

Statement of Operations

Statement of Changes in Net Assets

Notes to Financial Statements

Financial Highlights

Report of Independent Registered Public Accounting Firm

Management

Approval of Management Agreement

Additional Information
























Any opinions expressed in this report reflect those of the author as of the date of the report, and do not necessarily represent the opinions of American Century Investments® or any other person in the American Century Investments organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century Investments disclaims any responsibility to update such opinions. These opinions may not be relied upon as investment advice and, because investment decisions made by American Century Investments funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century Investments fund. Security examples are used for representational purposes only and are not intended as recommendations to purchase or sell securities. Performance information for comparative indices and securities is provided to American Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.



President’s Letter

jthomasrev0514a66.jpg Jonathan Thomas

Dear Investor:

Thank you for reviewing this annual report for the period ended August 31, 2019. Annual reports help convey important information about fund returns, including market factors that affected performance during the reporting period. For additional updated investment and market insights, please visit our website, americancentury.com.

Falling Yields, Robust Demand Supported Muni Gains

After struggling in late 2018, municipal bonds (munis) rallied through the first eight months of 2019 to deliver solid performance for the entire 12-month reporting period. Within the asset class, high-yield munis generally outperformed investment-grade munis, and California munis modestly underperformed national munis, according to Bloomberg.

Early in the reporting period, U.S. fixed-income investors faced a challenging backdrop of healthy economic growth and rising interest rates. The Federal Reserve (Fed) raised rates in September, which helped keep U.S. Treasury and muni yields on an upward trajectory through early November. After that, yields plunged on moderating U.S. economic growth, heightened trade tensions and mounting stock market volatility. Along with implementing another rate hike in December, the Fed delivered an economic outlook that investors feared was too hawkish. This also drove yields lower.

Markets stabilized in early 2019. Investors’ concerns about U.S. growth eased, and the Fed changed course. The central bank ended its rate-hike campaign amid slowing global growth and muted inflation. The Fed’s increasingly dovish tone, which led to a July rate cut, and ongoing global economic uncertainties helped keep Treasury yields on a downward path through August.

In addition to benefiting from declining yields, munis advanced on stable credit fundamentals and favorable supply/demand dynamics. Demand was particularly robust in California and other high-tax states, where federal legislation capping state and local tax deductions continued to boost investor interest in munis.

We believe state and local finances in California and across the country should remain stable, providing continued support for munis. We also expect the supply/demand backdrop to remain favorable. Meanwhile, volatility, economic data, central bank policy and other factors will continue to affect the markets. These influences underscore the importance of using professionally managed portfolios in pursuit of investment goals. We appreciate your continued trust and confidence in us.

Sincerely,
image48a16.jpg
Jonathan Thomas
President and Chief Executive Officer
American Century Investments

2


Performance
 
Total Returns as of August 31, 2019
 
 
 
Average Annual Returns
 
 
Ticker
Symbol
1 year
5 years
10 years
Inception
Date
Investor Class
BCTXX
1.08%
0.44%
0.23%
11/9/83
Fund returns would have been lower if a portion of the fees had not been waived.

Total Annual Fund Operating Expenses
Investor Class      0.50%
The total annual fund operating expenses shown is as stated in the fund’s prospectus current as of the date of this report. The prospectus may vary from the expense ratio shown elsewhere in this report because it is based on a different time period, includes acquired fund fees and expenses, and, if applicable, does not include fee waivers or expense reimbursements.













Data presented reflect past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. Total returns for periods less than one year are not annualized. To obtain performance data current to the most recent month end, please call 1-800-345-2021 or visit americancentury.com. For additional information about the fund, please consult the prospectus.

You could lose money by investing in the fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund’s sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.

The 7-day current yield more closely reflects the current earnings of the fund than the total return.

3


Fund Characteristics
August 31, 2019
 
Yields
 
7-Day Current Yield
0.85%
7-Day Effective Yield
0.85%
 
 
Portfolio at a Glance
 
Weighted Average Maturity
20 days
Weighted Average Life
20 days
 
 
Portfolio Composition by Maturity
% of fund investments
1-30 days
87%
31-90 days
9%
91-180 days
—
More than 180 days
4%

4


Shareholder Fee Example

Fund shareholders may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption/exchange fees; and (2) ongoing costs, including management 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 your fund and to compare these costs with the ongoing cost of investing in other mutual funds.

The example is based on an investment of $1,000 made at the beginning of the period and held for the entire period from March 1, 2019 to August 31, 2019.

Actual Expenses

The table provides information about actual account values and actual expenses for each class. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. First, identify the share class you own. Then 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 under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

If you hold Investor Class shares of any American Century Investments fund, or I Class shares of the American Century Diversified Bond Fund, in an American Century Investments account (i.e., not a financial intermediary or retirement plan account), American Century Investments may charge you a $12.50 semiannual account maintenance fee if the value of those shares is less than $10,000. We will redeem shares automatically in one of your accounts to pay the $12.50 fee. In determining your total eligible investment amount, we will include your investments in all personal accounts (including American Century Investments Brokerage accounts) registered under your Social Security number. Personal accounts include individual accounts, joint accounts, UGMA/UTMA accounts, personal trusts, Coverdell Education Savings Accounts and IRAs (including traditional, Roth, Rollover, SEP-, SARSEP- and SIMPLE-IRAs), and certain other retirement accounts. If you have only business, business retirement, employer-sponsored or American Century Investments Brokerage accounts, you are currently not subject to this fee. If you are subject to the Account Maintenance Fee, your account value could be reduced by the fee amount.

Hypothetical Example for Comparison Purposes

The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of each class of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund’s share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption/exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.


5


 
Beginning
Account Value
3/1/19
Ending
Account Value
8/31/19
Expenses Paid
During Period(1) 
3/1/19 - 8/31/19
 
Annualized
Expense Ratio(1)
Actual
 
 
 
 
Investor Class
$1,000
$1,005.20
$2.53
0.50%
Hypothetical
 
 
 
Investor Class
$1,000
$1,022.69
$2.55
0.50%
(1)
Expenses are equal to the class's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 184, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses.

6


Schedule of Investments
 
AUGUST 31, 2019
 
Principal Amount
Value
MUNICIPAL SECURITIES — 99.3%
 
 
California — 97.9%
 
 
ABAG Finance Authority for Nonprofit Corps. Rev., (Pathways Home Health and Hospice), VRDN, 1.35%, 9/6/19 (LOC: U.S. Bank N.A.)
$
1,200,000

$
1,200,000

California Enterprise Development Authority Rev., (Community Hospice, Inc.), VRDN, 1.37%, 9/6/19 (LOC: Bank of Stockton and FHLB)
2,795,000

2,795,000

California Enterprise Development Authority Rev., (Humane Society Silicon Valley), VRDN, 1.37%, 9/6/19 (LOC: First Republic Bank and FHLB)
5,405,000

5,405,000

California Infrastructure & Economic Development Bank Rev., (Columbia College), VRDN, 1.41%, 9/6/19 (LOC: Rabobank N.A. and Rabobank Nederland)
4,565,000

4,565,000

California Infrastructure & Economic Development Bank Rev., (Columbia College), VRDN, 1.41%, 9/6/19 (LOC: Rabobank N.A. and Rabobank Cooperatieve)
2,035,000

2,035,000

California Infrastructure & Economic Development Bank Rev., (EB Property Management LLC), VRDN, 1.35%, 9/6/19 (LOC: California United Bank and Wells Fargo Bank N.A.)
1,180,000

1,180,000

California Infrastructure & Economic Development Bank Rev., (Kennfoods USA LLC), VRDN, 1.35%, 9/6/19 (LOC: Bank of the West)
820,000

820,000

California Infrastructure & Economic Development Bank Rev., VRDN, 1.39%, 9/6/19 (LOC: Union Bank N.A.)
2,030,000

2,030,000

California Municipal Finance Authority Rev., (Chevron USA, Inc.), VRDN, 1.24%, 9/3/19 (GA: Chevron Corp.)
7,000,000

7,000,000

California Municipal Finance Authority Rev., (High Desert Partnership In Academic Excellence Foundation, Inc.), VRDN, 1.39%, 9/6/19 (LOC: Union Bank N.A.)
1,855,000

1,855,000

California Pollution Control Financing Authority Rev., (Recology, Inc.), VRDN, 1.37%, 9/6/19 (LOC: Bank of America N.A.)
2,575,000

2,575,000

California Public Finance Authority Rev., (Sharp Healthcare Obligated Group), VRDN, 1.20%, 9/3/19 (LOC: Barclays Bank plc)
4,300,000

4,300,000

California Statewide Communities Development Authority Rev., (Chevron USA, Inc.), VRDN, 1.24%, 9/3/19 (GA: Chevron Corp.)
800,000

800,000

California Statewide Communities Development Authority Rev., (Kaiser Credit Group), VRDN, 1.28%, 9/6/19
7,800,000

7,800,000

California Statewide Communities Development Authority Rev., (Uptown Newport Building Owner LP), VRDN, 1.39%, 9/6/19 (LOC: East West Bank, Zions Bank and FHLB)
7,600,000

7,600,000

Eastern Municipal Water District Rev., VRDN, 1.17%, 9/3/19 (SBBPA: Toronto-Dominion Bank)
7,300,000

7,300,000

Irvine Ranch Water District Special Assessment, VRN, 1.34%, (MUNIPSA less 0.01%), 10/1/37
2,240,000

2,240,000

Irvine Ranch Water District Special Assessment, VRN, 1.34%, (MUNIPSA less 0.01%), 10/1/37
2,160,000

2,160,000

Kings County Housing Authority Rev., (Wasatch Pool Holdings LLC), VRDN, 1.35%, 9/6/19 (LOC: FNMA)(LIQ FAC: FNMA)
510,000

510,000

Los Angeles County Metropolitan Transportation Authority, 1.27%, 9/10/19 (LOC: Citibank N.A.)
4,000,000

4,000,000

Los Angeles Department of Water Rev., VRDN, 1.20%, 9/3/19 (SBBPA: Toronto-Dominion Bank)
5,100,000

5,100,000

Los Angeles Department of Water & Power System Rev., VRDN, 1.18%, 9/3/19 (SBBPA: Bank of America N.A.)
1,100,000

1,100,000


7


 
Principal Amount
Value
Manteca Redevelopment Agency Tax Allocation, VRDN, 1.50%, 9/3/19 (LOC: State Street Bank & Trust Co.)
$
2,720,000

$
2,720,000

Metropolitan Water District of Southern California Rev., VRN, 1.29%, (MUNIPSA less 0.06%), 7/1/37
1,750,000

1,750,000

Municipal Improvement Corp. of Los Angeles, 1.36%, 11/26/19 (LOC: U.S. Bank N.A.)
1,000,000

1,000,000

Reedley COP, (Mennonite Brethren Homes, Inc.), VRDN, 1.40%, 9/6/19 (LOC: Bank of the Sierra and FHLB)
4,795,000

4,795,000

San Diego County Water Authority, 1.26%, 10/9/19
4,000,000

4,000,000

San Francisco City & County Public Utilities Commission, 1.32%, 9/11/19 (LOC: Bank of America N.A.)
2,502,000

2,502,000

San Francisco City & County Public Utilities Commission Wastewater, 1.30%, 10/1/19 (LOC: Bank of America N.A.)
3,172,000

3,172,000

Santa Clara County Financing Authority Rev., VRDN, 1.30%, 9/6/19 (LOC: Bank of America N.A.)
1,000,000

1,000,000

State of California, 1.27%, 9/12/19 (LOC: Royal Bank of Canada)
5,000,000

5,000,000

State of California, 1.23%, 11/13/19 (LOC: Royal Bank of Canada)
2,000,000

2,000,000

State of California GO, VRDN, 1.25%, 9/6/19 (LOC: Wells Fargo Bank N.A.)
2,300,000

2,300,000

State of California Department of Water Resources, 1.27%, 9/25/19
5,345,000

5,345,000

State of California Department of Water Resources, 1.27%, 10/2/19
2,256,000

2,256,000

State of California Department of Water Resources, 1.27%, 10/3/19
1,919,000

1,919,000

Tender Option Bond Trust Receipts/Certificates GO, VRDN, 1.43%, 9/6/19 (LIQ FAC: JPMorgan Chase Bank N.A.)(1)
3,000,000

3,000,000

Tender Option Bond Trust Receipts/Certificates Rev., VRDN, 1.33%, 9/6/19 (LIQ FAC: Barclays Bank plc)(1)
2,220,000

2,220,000

Tender Option Bond Trust Receipts/Certificates Rev., VRDN, 1.36%, 9/6/19 (LIQ FAC: Bank of America N.A.)(1)
5,000,000

5,000,000

Tender Option Bond Trust Receipts/Certificates Rev., VRDN, 1.38%, 9/6/19 (LIQ FAC: JPMorgan Chase Bank N.A.)(1)
2,900,000

2,900,000

Tender Option Bond Trust Receipts/Certificates Rev., VRDN, 1.38%, 9/6/19 (LIQ FAC: JPMorgan Chase Bank N.A.)(1)
3,000,000

3,000,000

Tender Option Bond Trust Receipts/Certificates Rev., VRDN, 1.43%, 9/6/19 (LIQ FAC: JPMorgan Chase Bank N.A.)(1)
6,750,000

6,750,000

Town of Apple Valley COP, VRDN, 1.39%, 9/1/19 (LOC: Union Bank N.A.)
385,000

385,000

University of California, 1.40%, 10/24/19
1,000,000

1,000,000

University of California Rev., VRDN, 1.25%, 9/3/19
1,700,000

1,700,000

Victorville Joint Powers Finance Authority Rev., VRDN, 1.35%, 9/6/19 (LOC: BNP Paribas)
13,060,000

13,060,000

Yolo County Rev., (Beckett Hall, Inc.), VRDN, 1.45%, 9/6/19 (LOC: Bank of the West)
5,400,000

5,400,000

 
 
158,544,000

Nevada — 1.4%
 
 
Truckee Meadows Water Authority, 1.55%, 9/4/19 (LOC: Wells Fargo Bank N.A.)
2,312,000

2,312,000

TOTAL INVESTMENT SECURITIES — 99.3%
 
160,856,000

OTHER ASSETS AND LIABILITIES — 0.7%
 
1,166,390

TOTAL NET ASSETS — 100.0%
 
$
162,022,390




8


NOTES TO SCHEDULE OF INVESTMENTS
COP
-
Certificates of Participation
FHLB
-
Federal Home Loan Bank
FNMA
-
Federal National Mortgage Association
GA
-
Guaranty Agreement
GO
-
General Obligation
LIQ FAC
-
Liquidity Facilities
LOC
-
Letter of Credit
MUNIPSA
-
SIFMA Municipal Swap Index
SBBPA
-
Standby Bond Purchase Agreement
VRDN
-
Variable Rate Demand Note. The instrument may be payable upon demand and adjusts periodically based upon the terms set forth in the security's offering documents. The rate shown is effective at the period end and the reference rate and spread, if any, is indicated. The date of the demand feature is disclosed.
VRN
-
Variable Rate Note. The rate adjusts periodically based upon the terms set forth in the security’s offering documents. The rate shown is effective at the period end and the reference rate and spread, if any, is indicated.
 
(1)
Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration, normally to qualified institutional investors. The aggregate value of these securities at the period end was $22,870,000, which represented 14.1% of total net assets.


See Notes to Financial Statements.

9


Statement of Assets and Liabilities
 
AUGUST 31, 2019
Assets
Investment securities, at value (amortized cost and cost for federal income tax purposes)
$
160,856,000

Cash
168,462

Receivable for investments sold
250,000

Receivable for capital shares sold
572,710

Interest receivable
244,798

 
162,091,970

 
 
Liabilities
 
Payable for capital shares redeemed
2,687

Accrued management fees
66,893

 
69,580

 
 
Net Assets
$
162,022,390

 
 
Investor Class Capital Shares
 
Shares outstanding (unlimited number of shares authorized)
162,022,384

 
 
Net Asset Value Per Share
$
1.00

 
 
Net Assets Consist of:
 
Capital paid in
$
162,022,390


 
See Notes to Financial Statements.

10


Statement of Operations
 
YEAR ENDED AUGUST 31, 2019
Investment Income (Loss)
Income:
 
Interest
$
2,540,992

 
 
Expenses:
 
Management fees
799,351

Trustees' fees and expenses
11,598

Other expenses
2,313

 
813,262

 
 
Net investment income (loss)
1,727,730

 
 
Net Increase (Decrease) in Net Assets Resulting from Operations
$
1,727,730


 
See Notes to Financial Statements.

11


Statement of Changes in Net Assets
YEARS ENDED AUGUST 31, 2019 AND AUGUST 31, 2018
Increase (Decrease) in Net Assets
August 31, 2019
August 31, 2018
Operations
 
 
Net investment income (loss)
$
1,727,730

$
1,264,402

Net realized gain (loss)
—

25,985

Net increase (decrease) in net assets resulting from operations
1,727,730

1,290,387

 
 
 
Distributions to Shareholders
 
 
From earnings(1)
(1,753,715
)
(1,265,502
)
 
 
 
Capital Share Transactions
 
 
Proceeds from shares sold
55,813,854

79,973,091

Proceeds from reinvestment of distributions
1,724,963

1,260,560

Payments for shares redeemed
(59,933,840
)
(85,596,679
)
Net increase (decrease) in net assets from capital share transactions
(2,395,023
)
(4,363,028
)
 
 
 
Net increase (decrease) in net assets
(2,421,008
)
(4,338,143
)
 
 
 
Net Assets
 
 
Beginning of period
164,443,398

168,781,541

End of period
$
162,022,390

$
164,443,398

 
 
 
Transactions in Shares of the Fund
 
 
Sold
55,813,854

79,973,091

Issued in reinvestment of distributions
1,724,963

1,260,560

Redeemed
(59,933,840
)
(85,596,679
)
Net increase (decrease) in shares of the fund
(2,395,023
)
(4,363,028
)

(1)
Prior period presentation has been updated to reflect the current period combination of distributions to shareholders from net investment income and net realized gains. Distributions from net investment income were $(1,264,402). Distributions from net realized gains were $(1,100).

 
See Notes to Financial Statements.

12


Notes to Financial Statements
 
AUGUST 31, 2019

1. Organization

American Century California Tax-Free and Municipal Funds (the trust) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company and is organized as a Massachusetts business trust. California Tax-Free Money Market Fund (the fund) is one fund in a series issued by the trust. The fund’s investment objective is to seek safety of principal and high current income that is exempt from federal and California income taxes.

2. Significant Accounting Policies

The following is a summary of significant accounting policies consistently followed by the fund in preparation of its financial statements. The fund is an investment company and follows accounting and reporting guidance in accordance with accounting principles generally accepted in the United States of America. This may require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from these estimates. Management evaluated the impact of events or transactions occurring through the date the financial statements were issued that would merit recognition or disclosure.

Investment Valuations — The fund determines the fair value of its investments and computes its net asset value per share at the close of regular trading (usually 4 p.m. Eastern time) on the New York Stock Exchange (NYSE) on each day the NYSE is open. Investments are generally valued at amortized cost, which approximates fair value. If the fund determines that the amortized cost does not reflect an investment’s fair value, such investment is valued as determined in good faith by the Board of Trustees or its delegate, in accordance with policies and procedures adopted by the Board of Trustees.
    
Security Transactions — Security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes.
 
Investment Income — Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums.
 
Income Tax Status — It is the fund’s policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The fund files U.S. federal, state, local and non-U.S. tax returns as applicable. The fund's tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
 
Distributions to Shareholders — Distributions from net investment income, if any, are declared daily and paid monthly. The fund may make capital gains distributions to comply with the distribution requirements of the Internal Revenue Code.

Indemnifications — Under the trust’s organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business, the fund enters into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.

3. Fees and Transactions with Related Parties

Certain officers and trustees of the trust are also officers and/or directors of American Century Companies, Inc. (ACC). The trust's investment advisor, American Century Investment Management, Inc. (ACIM), the trust's distributor, American Century Investment Services, Inc., and the trust's transfer agent, American Century Services, LLC, are wholly owned, directly or indirectly, by ACC.

13


Management Fees — The trust has entered into a management agreement with ACIM, under which ACIM provides the fund with investment advisory and management services in exchange for a single, unified management fee (the fee). The agreement provides that all expenses of managing and operating the fund, except brokerage expenses, taxes, interest, fees and expenses of the independent trustees (including legal counsel fees), and extraordinary expenses, will be paid by ACIM. The fee is computed and accrued daily based on the daily net assets of the fund and paid monthly in arrears. The fee consists of (1) an Investment Category Fee based on the daily net assets of the fund and certain other accounts managed by the investment advisor that are in the same broad investment category as the fund and (2) a Complex Fee based on the assets of all the funds in the American Century Investments family of funds. The rates for the Investment Category Fee range from 0.1570% to 0.2700% and the rates for the Complex Fee range from 0.2500% to 0.3100%. The effective annual management fee for the period ended August 31, 2019 was 0.49%.

Trustees’ Fees and Expenses — The Board of Trustees is responsible for overseeing the investment advisor’s management and operations of the fund. The trustees receive detailed information about the fund and its investment advisor regularly throughout the year, and meet at least quarterly with management of the investment advisor to review reports about fund operations. The fund’s officers do not receive compensation from the fund.

Interfund Transactions — The fund may enter into security transactions with other American Century Investments funds and other client accounts of the investment advisor, in accordance with the 1940 Act rules and procedures adopted by the Board of Trustees. The rules and procedures require, among other things, that these transactions be effected at the independent current market price of the security. During the period, the interfund purchases and sales were $34,010,000 and $16,355,000, respectively. The interfund transactions had no effect on the Statement of Operations in net realized gain (loss) on investment transactions.

4. Fair Value Measurements

The fund’s investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the fund. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.

•
Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments.

•
Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars.

•
Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions).

The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments.
 
As of period end, the fund’s investment securities were classified as Level 2. The Schedule of Investments provides additional information on the fund’s portfolio holdings.

5. Risk Factors

The fund focuses its investments in a single state and therefore may have more exposure to credit risk related to the state of California than a fund with a broader geographical diversification.


14


6. Federal Tax Information

The tax character of distributions paid during the years ended August 31, 2019 and August 31, 2018 were as follows:
 
2019
2018
Distributions Paid From
 
 
Exempt income
$
1,727,730

$
1,264,402

Taxable ordinary income
$
11,885

$
1,100

Long-term capital gains
$
14,100

—


The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.

7. Recently Issued Accounting Standards
In March 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2017-08, “Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities” (ASU 2017-08). ASU 2017-08 amends the amortization period for certain purchased callable debt securities held at a premium, shortening such period to the earliest call date. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Management is currently evaluating the impact that adopting ASU 2017-08 will have on the financial statements.



15


Financial Highlights
For a Share Outstanding Throughout the Years Ended August 31 (except as noted)
Per-Share Data
Ratios and Supplemental Data
 
 
Income From Investment Operations:
Distributions From:
 
 
Ratio to Average Net Assets of:
 
 
Net Asset
Value,
Beginning
of Period
Net Investment Income (Loss)
Net
Realized
and
Unrealized
Gain (Loss)
Total From
Investment
Operations
Net Investment Income
Net
Realized
Gains
Total
Distributions
Net Asset
Value,
End of Period
Total
Return(1)
Operating Expenses
Operating Expenses
(before expense waiver)
Net
Investment Income
(Loss)
Net Investment Income
(Loss) (before expense waiver)
Net Assets,
End of Period (in thousands)
Investor Class
2019
$1.00
0.01
—
0.01
(0.01)
—(2)
(0.01)
$1.00
1.08%
0.50%
0.50%
1.06%
1.06%

$162,022

2018
$1.00
0.01
—(2)
0.01
(0.01)
—(2)
(0.01)
$1.00
0.75%
0.50%
0.50%
0.75%
0.75%

$164,443

2017
$1.00
—(2)
—(2)
—(2)
—(2)
—(2)
—(2)
$1.00
0.35%
0.50%
0.50%
0.33%
0.33%

$168,782

2016
$1.00
—(2)
—(2)
—(2)
—(2)
—(2)
—(2)
$1.00
0.02%
0.29%
0.50%
0.02%
(0.19)%

$169,640

2015
$1.00
—(2)
—(2)
—(2)
—(2)
—
—(2)
$1.00
0.01%
0.13%
0.50%
0.01%
(0.36)%

$199,644

Notes to Financial Highlights
(1)
Total returns are calculated based on the net asset value of the last business day. Total returns for periods less than one year are not annualized.
(2)
Per-share amount was less than $0.005.

See Notes to Financial Statements.



Report of Independent Registered Public Accounting Firm

To the Board of Trustees of American Century California Tax-Free and Municipal Funds and Shareholders of California Tax-Free Money Market Fund

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of California Tax-Free Money Market Fund (one of the funds constituting American Century California Tax-Free and Municipal Funds, referred to hereafter as the "Fund") as of August 31, 2019, the related statement of operations for the year ended August 31, 2019, the statement of changes in net assets for each of the two years in the period ended August 31, 2019, including the related notes, and the financial highlights for each of the five years in the period ended August 31, 2019 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of August 31, 2019, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended August 31, 2019 and the financial highlights for each of the five years in the period ended August 31, 2019 in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of August 31, 2019 by correspondence with the custodian. We believe that our audits provide a reasonable basis for our opinion.


/s/ PricewaterhouseCoopers LLP
Kansas City, Missouri
October 18, 2019

We have served as the auditor of one or more investment companies in American Century Investments since 1997.

17


Management

Board of Trustees

The individuals listed below serve as trustees of the funds. Each trustee will continue to serve in this capacity until death, retirement, resignation or removal from office. The board has adopted a mandatory retirement age for trustees who are not “interested persons,” as that term is defined in the Investment Company Act (independent trustees). Independent trustees shall retire on December 31 of the year in which they reach their 75th birthday; provided, however, that on or after January 1, 2022, independent trustees shall retire on December 31 of the year in which they reach their 76th birthday.
Mr. Thomas is an “interested person” because he currently serves as President and Chief Executive Officer of American Century Companies, Inc. (ACC), the parent company of American Century Investment Management, Inc. (ACIM or the advisor). The other trustees (more than three-fourths of the total number) are independent. They are not employees, directors or officers of, and have no financial interest in, ACC or any of its wholly owned, direct or indirect, subsidiaries, including ACIM, American Century Investment Services, Inc. (ACIS) and American Century Services, LLC (ACS), and they do not have any other affiliations, positions or relationships that would cause them to be considered “interested persons” under the Investment Company Act. The trustees serve in this capacity for eight (in the case of Jonathan S. Thomas, 16; and Ronald J. Gilson, 9) registered investment companies in the American Century Investments family of funds.
The following table presents additional information about the trustees. The mailing address for each trustee other than Mr. Thomas is 1665 Charleston Road, Mountain View, California 94043. The mailing address for Mr. Thomas is 4500 Main Street, Kansas City, Missouri 64111.
Name
(Year of Birth)
Position(s) Held with Funds
Length of Time Served
Principal Occupation(s) During Past 5 Years
Number of American Century Portfolios Overseen by Trustee
Other Directorships Held During Past 5 Years
Independent Trustees


Tanya S. Beder
(1955)
Trustee
Since 2011
Chairman and CEO, SBCC Group Inc. (independent advisory services) (2006 to present)
44
CYS
Investments,
Inc.; Nabors
Industries Ltd.
Jeremy I. Bulow
(1954)
Trustee
Since 2011
Professor of Economics, Stanford University, Graduate School of Business (1979 to present)
44
None
Anne Casscells
(1958)
Trustee
Since 2016
Co-Chief Executive Officer and Chief Investment Officer, Aetos Alternatives Management (investment advisory firm) (2001 to present); Lecturer in Accounting, Stanford University, Graduate School of Business (2009 to 2017)
44
None
Ronald J. Gilson
(1946)
Trustee and Chairman of the Board
Since 1995
(Chairman since 2005)
Charles J. Meyers Professor of Law and Business, Emeritus, Stanford Law School (1979 to 2016); Marc and Eva Stern Professor of Law and Business, Columbia University School of Law (1992 to present)
49
None

18


Name
(Year of Birth)
Position(s) Held with Funds
Length of Time Served
Principal Occupation(s) During Past 5 Years
Number of American Century Portfolios Overseen by Trustee
Other Directorships Held During Past 5 Years
Independent Trustees


Frederick L. A. Grauer
(1946)
Trustee
Since 2008
Senior Advisor, Credit Sesame, Inc. (credit monitoring firm) (2018 to present); Senior Advisor, Course Hero (an educational technology company) (2015 to present); Senior Advisor, iShares by BlackRock, Inc. (investment management firm) (2013 to 2015)
44
None
Jonathan D. Levin
(1972)
Trustee
Since 2016
Philip H. Knight Professor and Dean, Graduate School of Business, Stanford University (2016 to present); Professor, Stanford University, (2000 to present); Chair, Department of Economics, Stanford University (2011 to 2014)
44
None
Peter F. Pervere
(1947)
Trustee
Since 2007
Retired
44
None
John B. Shoven
(1947)
Trustee
Since 2002
Charles R. Schwab Professor of Economics, Stanford University (1973 to present)
44
Cadence Design Systems; Exponent; Financial Engines
Interested Trustee


Jonathan S. Thomas
(1963)
Trustee and President
Since 2007
President and Chief Executive Officer, ACC (2007 to present). Also serves as Chief Executive Officer, ACS; Executive Vice President, ACIM; Director, ACC, ACIM and other ACC subsidiaries
116
BioMed Valley Discoveries, Inc.

The Statement of Additional Information has additional information about the fund's trustees and is available without charge, upon request, by calling 1-800-345-2021.


19


Officers

The following table presents certain information about the executive officers of the funds. Each officer serves as an officer for 16 (in the case of Robert J. Leach, 15) investment companies in the American Century family of funds. No officer is compensated for his or her service as an officer of the funds. The listed officers are interested persons of the funds and are appointed or re-appointed on an annual basis. The mailing address for each of the officers listed below is 4500 Main Street, Kansas City, Missouri 64111.
Name
(Year of Birth)
Offices with the Funds
Principal Occupation(s) During the Past Five Years
Jonathan S. Thomas
(1963)
Trustee and President since 2007
President and Chief Executive Officer, ACC (2007 to present). Also serves as Chief Executive Officer, ACS; Executive Vice President, ACIM; Director, ACC, ACIM and other ACC subsidiaries
R. Wes Campbell
(1974)
Chief Financial Officer and Treasurer since 2018
Investment Operations and Investment Accounting, ACS (2000 to present)
Amy D. Shelton
(1964)
Chief Compliance Officer and Vice President since 2014
Chief Compliance Officer, American Century funds, (2014 to present); Chief Compliance Officer, ACIM (2014 to present); Chief Compliance Officer, ACIS (2009 to present). Also serves as Vice President, ACIS
Charles A. Etherington
(1957)
General Counsel since 2007 and Senior Vice President since 2006
Attorney, ACC (1994 to present); Vice President, ACC (2005 to present); General Counsel, ACC (2007 to present). Also serves as General Counsel, ACIM, ACS, ACIS and other ACC subsidiaries; and Senior Vice President, ACIM and ACS
C. Jean Wade
(1964)
Vice President since 2012
Senior Vice President, ACS (2017 to present); Vice President, ACS (2000 to 2017)
Robert J. Leach
(1966)
Vice President since 2006
Vice President, ACS (2000 to present)
David H. Reinmiller
(1963)
Vice President since 2000
Attorney, ACC (1994 to present). Also serves as Vice President, ACIM and ACS
Ward D. Stauffer
(1960)
Secretary since 2005
Attorney, ACC (2003 to present)


20


Approval of Management Agreement


At a meeting held on June 19, 2019, the Fund’s Board of Trustees (the "Board") unanimously approved the renewal of the management agreement pursuant to which American Century Investment Management, Inc. (the “Advisor”) acts as the investment advisor for the Fund. Under Section 15(c) of the Investment Company Act, contracts for investment advisory services are required to be reviewed, evaluated, and approved by a majority of a fund’s directors/trustees, including a majority of the independent Trustees, each year. The Board regards this annual evaluation and renewal as one of its most important responsibilities.

The independent Trustees have memorialized a statement regarding the relationship between their ongoing obligations to oversee and evaluate the performance of the Advisor and their annual consideration of renewal of the management agreement. In that statement, the independent Trustees noted that their assessment of the Advisor’s performance is an ongoing process that takes place over the entire year and is informed by all of the extensive information that the Board and its committees receive and consider over time. This information, together with the additional materials provided specifically in connection with the review, are central to the Board’s assessment of the Advisor’s performance and its determination whether to renew the Fund’s management agreement.

Prior to its consideration of the renewal of the management agreement, the Board requested and reviewed extensive data and analysis relating to the proposed renewal. This information and analysis was compiled by the Advisor and certain independent providers of evaluation data concerning the Fund and the services provided to the Fund by the Advisor.

In connection with its consideration of the renewal of the management agreement, the Board’s review and evaluation of the services provided by the Advisor included, but was not limited to, the following:

•
the nature, extent, and quality of investment management, shareholder services, and other services provided to the Fund;
•
the wide range of other programs and services the Advisor provides to the Fund and its shareholders on a routine and non-routine basis;
•
the investment performance of the Fund, including data comparing the Fund’s performance to appropriate benchmarks and/or a peer group of other mutual funds with similar investment objectives and strategies;
•
the cost of owning the Fund compared to the cost of owning similar funds;
•
the compliance policies, procedures, and regulatory experience of the Advisor and the Fund’s service providers;
•
financial data showing the cost of services provided to the Fund, the profitability of the Fund to the Advisor, and the overall profitability of the Advisor;
•
strategic plans of the Advisor;
•
any economies of scale associated with the Advisor’s management of the Fund and other accounts;
•
services provided and charges to the Advisor’s other investment management clients;
•
acquired fund fees and expenses;
•
payments and practices in connection with financial intermediaries holding shares of the Fund and the services provided by intermediaries in connection therewith; and
•
any collateral benefits derived by the Advisor from the management of the Fund.

In keeping with its practice, the Board held two in-person meetings to review and discuss the information provided in response to their request and held active discussions with the Advisor

21


regarding the renewal of the management agreement. The independent Trustees had the benefit of the advice of their independent counsel throughout the process.

Factors Considered

The Trustees considered all of the information provided by the Advisor, the independent data providers, and the independent Trustees’ independent counsel in connection with the approval. They determined that the information was sufficient for them to evaluate the management agreement for the Fund. In connection with their review, the Trustees did not identify any single factor as being all-important or controlling and each Trustee may have attributed different levels of importance to different factors. In deciding to renew the management agreement, the Board based its decision on a number of factors, including the following:

Nature, Extent and Quality of Services — Generally. Under the management agreement, the Advisor is responsible for providing or arranging for all services necessary for the operation of the Fund. The Board noted that the Advisor provides or arranges at its own expense a wide variety of services including:

•
constructing and designing the Fund
•
portfolio research and security selection
•
initial capitalization/funding
•
securities trading
•
Fund administration
•
custody of Fund assets
•
daily valuation of the Fund’s portfolio
•
shareholder servicing and transfer agency, including shareholder confirmations, recordkeeping, and communications
•
legal services (except the independent Trustees’ counsel)
•
regulatory and portfolio compliance
•
financial reporting
•
marketing and distribution (except amounts paid by the Fund under Rule 12b-1 plans)

The Board noted that many of these services have expanded over time in terms of both quantity and complexity in response to shareholder demands, competition in the industry, changing distribution channels, and the changing regulatory environment.

Investment Management Services. The nature of the investment management services provided to the Fund is quite complex and allows Fund shareholders access to professional money management, instant diversification of their investments within an asset class, the opportunity to easily diversify among asset classes by investing in or exchanging among various American Century Investments funds, and liquidity. In evaluating investment performance, the Board expects the Advisor to manage the Fund in accordance with its investment objectives and approved strategies. Further, the Trustees recognize that the Advisor has an obligation to seek the best execution of fund trades. In providing these services, the Advisor utilizes teams of investment professionals (portfolio managers, analysts, research assistants, and securities traders) who require extensive information technology, research, training, compliance, and other systems to conduct their business. The Board, directly and through its Portfolio Committee, regularly reviews investment performance information for the Fund, together with comparative information for appropriate benchmarks and/or peer groups of similarly-managed funds, over different time horizons. The Trustees also review investment performance information during the management agreement renewal process. If performance concerns are identified, the Fund receives special reviews until performance improves, during which the Board discusses with the Advisor the reasons for such results (e.g., market conditions, security selection) and any efforts being undertaken to improve performance. The Fund’s performance was above the median of its peer group for the one-, three-, five-, and ten-year periods reviewed by the Board. The Board found the

22


investment management services provided by the Advisor to the Fund to be satisfactory and consistent with the management agreement.

Shareholder and Other Services. Under the management agreement, the Advisor provides the Fund with a comprehensive package of transfer agency, shareholder, and other services. The Board, directly and through various committees of the Board, regularly reviews reports and evaluations of such services at its regular meetings. These reports include, but are not limited to, information regarding the operational efficiency and accuracy of the shareholder and transfer agency services provided, staffing levels, shareholder satisfaction, technology support (including cyber security), new products and services offered to Fund shareholders, securities trading activities, portfolio valuation services, auditing services, and legal and operational compliance activities. The Board found the services provided by the Advisor to the Fund under the management agreement to be competitive and of high quality.

Costs of Services and Profitability. The Advisor provides detailed information concerning its cost of providing various services to the Fund, its profitability in managing the Fund, its overall profitability, and its financial condition. The Trustees have reviewed with the Advisor the methodology used to prepare this financial information. This information is considered in evaluating the Advisor’s financial condition, its ability to continue to provide services under the management agreement, and the reasonableness of the current management fee. The Board concluded that the Advisor’s profits were reasonable in light of the services provided to the Fund.

Ethics. The Board generally considers the Advisor’s commitment to providing quality services to shareholders and to conducting its business ethically. They noted that the Advisor’s practices generally meet or exceed industry best practices.

Economies of Scale. The Board also reviewed information provided by the Advisor regarding the possible existence of economies of scale in connection with the management of the Fund. The Board concluded that economies of scale are difficult to measure and predict with precision, especially on a fund-by-fund basis. The Board concluded that the Advisor is appropriately sharing economies of scale through its competitive fee structure, offering competitive fees from fund inception, and through reinvestment in its business to provide shareholders enhanced and expanded services.

Comparison to Other Funds’ Fees. The management agreement provides that the Fund pays the Advisor a single, all-inclusive (or unified) management fee for providing all services necessary for the management and operation of the Fund, other than brokerage expenses, expenses attributable to short sales, taxes, interest, extraordinary expenses, fees and expenses of the Fund’s independent Trustees (including their independent legal counsel), and expenses incurred in connection with the provision of shareholder services and distribution services under a plan adopted pursuant to Rule 12b-1 under the Investment Company Act. Under the unified fee structure, the Advisor is responsible for providing all investment advisory, custody, audit, administrative, compliance, recordkeeping, marketing, and shareholder services, or arranging and supervising third parties to provide such services. By contrast, most other funds are charged a variety of fees, including an investment advisory fee, a transfer agency fee, an administrative fee, distribution charges, and other expenses. Other than their investment advisory fees and any applicable Rule 12b-1 distribution fees, all other components of the total fees charged by these other funds may be increased without shareholder approval. The Board believes the unified fee structure is a benefit to Fund shareholders because it clearly discloses to shareholders the cost of owning Fund shares, and, since the unified fee cannot be increased without a vote of Fund shareholders, it shifts to the Advisor the risk of increased costs of operating the Fund and provides a direct incentive to minimize administrative inefficiencies. Part of the Board’s analysis of fee levels involves reviewing certain evaluative data compiled by an independent provider and comparing the Fund’s unified fee to the total expense ratio of peer funds. Given the broad proliferation of fee waivers to support positive money market fund yields and the wide variance of expenses waived, the Board recognized that net fee comparisons may not be a reliable analysis of fund expenses.

23


With that in mind, the Board reviewed peer data both on a gross basis and net of applicable waivers. The Board concluded that the management fee paid by the Fund to the Advisor under the management agreement is reasonable in light of the services provided to the Fund.

Comparison to Fees and Services Provided to Other Clients of the Advisor. The Board also requested and received information from the Advisor concerning the nature of the services, fees, costs, and profitability of its advisory services to advisory clients other than the Fund. They observed that these varying types of client accounts require different services and involve different regulatory and entrepreneurial risks than the management of the Fund. The Board analyzed this information and concluded that the fees charged and services provided to the Fund were reasonable by comparison.

Payments to Intermediaries. The Trustees also requested and received a description of payments made to intermediaries by the Fund and the Advisor and services provided by intermediaries. These payments include various payments made by the Fund or the Advisor to different types of intermediaries and recordkeepers for distribution and service activities provided for the Fund. The Trustees reviewed such information and received representations from the Advisor that all such payments by the Fund were made pursuant to the Fund’s Rule 12b-1 Plan and that all such payments by the Advisor were made from the Advisor’s resources and reasonable profits. The Board found such payments to be reasonable in scope and purpose.

Collateral or “Fall-Out” Benefits Derived by the Advisor. The Board considered the existence of collateral benefits the Advisor may receive as a result of its relationship with the Fund. The Board noted that the Advisor’s primary business is managing mutual funds and it generally does not use fund or shareholder information to generate profits in other lines of business, and therefore does not derive any significant collateral benefits from them. The Board noted that the Advisor may receive proprietary research from broker-dealers that execute fund portfolio transactions. The Board also determined that the Advisor is able to provide investment management services to certain clients other than the Fund, at least in part, due to its existing infrastructure built to serve the fund complex. The Board noted that the assets of those other accounts are, where applicable, included with the assets of the Fund to determine breakpoints in the management fee schedule.

Existing Relationship. The Board also considered whether there was any reason for not continuing the existing arrangement with the Advisor. In this regard, the Board was mindful of the potential disruptions of the Fund’s operations and various risks, uncertainties, and other effects that could occur as a result of a decision not to continue such relationship. In particular, the Board recognized that most shareholders have invested in the Fund on the strength of the Advisor’s industry standing and reputation and in the expectation that the Advisor will have a continuing role in providing advisory services to the Fund.

Conclusion of the Trustees. As a result of this process, the Board, including all of the independent Trustees and assisted by the advice of independent legal counsel, taking into account all of the factors discussed above and the information provided by the Advisor and others in connection with its review and throughout the year, concluded that the management agreement between the Fund and the Advisor is fair and reasonable in light of the services provided and should be renewed.



24


Additional Information

Retirement Account Information

As required by law, distributions you receive from certain retirement accounts are subject to federal income tax withholding, unless you elect not to have withholding apply*. Tax will be withheld on the total amount withdrawn even though you may be receiving amounts that are not subject to withholding, such as nondeductible contributions. In such case, excess amounts of withholding could occur. You may adjust your withholding election so that a greater or lesser amount will be withheld.

If you don’t want us to withhold on this amount, you must notify us to not withhold the federal income tax. You may notify us in writing or in certain situations by telephone or through other electronic means. For systematic withdrawals, your withholding election will remain in effect until revoked or changed by filing a new election. You have the right to revoke your election at any time and change your withholding percentage for future distributions.

Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.

State tax will be withheld if, at the time of your distribution, your address is within one of the mandatory withholding states and you have federal income tax withheld (or as otherwise required by state law). State taxes will be withheld from your distribution in accordance with the respective state rules.

*Some 403(b), 457 and qualified retirement plan distributions may be subject to 20% mandatory withholding, as they are subject to special tax and withholding rules.  Your plan administrator or plan sponsor is required to provide you with a special tax notice explaining those rules at the time you request a distribution.  If applicable, federal and/or state taxes may be withheld from your distribution amount.


Proxy Voting Policies
 
Descriptions of the principles and policies that the fund's investment advisor uses in exercising the voting rights associated with the securities purchased and/or held by the fund are available without charge, upon request, by calling 1-800-345-2021 or visiting the "About Us" page of American Century Investments’ website at americancentury.com. A description of the policies is also available on the Securities and Exchange Commission’s website at sec.gov. Information regarding how the investment advisor voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the "About Us" page at americancentury.com. It is also available at sec.gov.
 

Quarterly Portfolio Disclosure

The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q or as an exhibit to its reports on Form N-PORT. The fund’s Forms N-Q and Form N-PORT reports are available on the SEC’s website at sec.gov. The fund also makes its complete schedule of portfolio holdings for the most recent quarter of its fiscal year available on its website at americancentury.com and, upon request, by calling 1-800-345-2021.

25


Other Tax Information

The following information is provided pursuant to provisions of the Internal Revenue Code.

The fund designates $1,727,730 as exempt interest dividends for the fiscal year ended August 31, 2019.

The fund hereby designates $11,885 as qualified short-term capital gain distributions for purposes of Internal Revenue Code Section 871 for the fiscal year ended August 31, 2019.

The fund hereby designates $14,100, or up to the maximum amount allowable, as long-term capital gain distributions (20% rate gain distributions) for the fiscal year ended August 31, 2019.


26


Notes

27


Notes

28


Notes


29


Notes


30


Notes

31


Notes


32






acihorizblkd27.jpg
 
 
 
 
Contact Us
americancentury.com
 
Automated Information Line
1-800-345-8765
 
Investor Services Representative
1-800-345-2021
or 816-531-5575
 
Investors Using Advisors
1-800-378-9878
 
Business, Not-For-Profit, Employer-Sponsored Retirement Plans
1-800-345-3533
 
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1-800-345-6488
 
Telecommunications Relay Service for the Deaf
711
 
 
 
 
American Century California Tax-Free and Municipal Funds
 
 
 
 
Investment Advisor:
American Century Investment Management, Inc.
Kansas City, Missouri
 
 
 
 
This report and the statements it contains are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus.
 
 
 
 
©2019 American Century Proprietary Holdings, Inc. All rights reserved.
CL-ANN-90328 1910
 



ITEM 2. CODE OF ETHICS.

(a)
The registrant has adopted a Code of Ethics for Senior Financial Officers that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer, and persons performing similar functions.

(b)
No response required.

(c)
None.

(d)
None.

(e)
Not applicable.

(f)
The registrant’s Code of Ethics for Senior Financial Officers was filed as Exhibit 12 (a)(1) to American Century Asset Allocation Portfolios, Inc.’s Annual Certified Shareholder Report on Form N-CSR, File No. 811-21591, on September 29, 2005, and is incorporated herein by reference.


ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

(a)(1)
The registrant's board has determined that the registrant has at least one audit committee financial expert serving on its audit committee.

(a)(2)
Tanya S. Beder, Anne Casscells, Peter F. Pervere and Ronald J. Gilson are the registrant's designated audit committee financial experts. They are "independent" as defined in Item 3 of Form N-CSR.

(a)(3)
Not applicable.

(b)
No response required.

(c)
No response required.

(d)
No response required.


        
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

(a)
Audit Fees.

The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years were as follows:

FY 2018:    $84,792
FY 2019:    $86,209

(b)
Audit-Related Fees.

The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of this Item were as follows:

For services rendered to the registrant:

FY 2018:    $0
FY 2019:    $0




Fees required to be approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X (relating to certain engagements for non-audit services with the registrant’s investment adviser and its affiliates):

FY 2018:    $0
FY 2019:    $0

(c)
Tax Fees.

The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning were as follows:

For services rendered to the registrant:

FY 2018:    $0
FY 2019:    $0

Fees required to be approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X (relating to certain engagements for non-audit services with the registrant’s investment adviser and its affiliates):

FY 2018:    $0
FY 2019:    $0

(d)
All Other Fees.

The aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item were as follows:

For services rendered to the registrant:

FY 2018:    $0
FY 2019:    $0

Fees required to be approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X (relating to certain engagements for non-audit services with the registrant’s investment adviser and its affiliates):

FY 2018:    $0
FY 2019:    $0

(e)(1)
In accordance with paragraph (c)(7)(i)(A) of Rule 2-01 of Regulation S-X, before the accountant is engaged by the registrant to render audit or non-audit services, the engagement is approved by the registrant’s audit committee. Pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, the registrant’s audit committee also pre-approves its accountant’s engagements for non-audit services with the registrant’s investment adviser, its parent company, and any entity controlled by, or under common control with the investment adviser that provides ongoing services to the registrant, if the engagement relates directly to the operations and financial reporting of the registrant.

(e)(2)
All services described in each of paragraphs (b) through (d) of this Item were pre-approved before the engagement by the registrant’s audit committee pursuant to paragraph (c)(7)(i)(A) of Rule 2-01 of Regulation S-X. Consequently, none of such services were required to be approved by the audit committee pursuant to paragraph (c)(7)(i)(C).

(f)
The percentage of hours expended on the principal accountant’s engagement to audit the registrant’s financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant’s full-time, permanent employees was less than 50%.




(g)
The aggregate non-audit fees billed by the registrant’s accountant for services rendered to the registrant, and rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for each of the last two fiscal years of the registrant were as follows:

FY 2018:    $128,203
FY 2019:    $177,597

(h)
The registrant’s investment adviser and accountant have notified the registrant’s audit committee of all non-audit services that were rendered by the registrant’s accountant to the registrant’s investment adviser, its parent company, and any entity controlled by, or under common control with the investment adviser that provides services to the registrant, which services were not required to be pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X. The notification provided to the registrant’s audit committee included sufficient details regarding such services to allow the registrant’s audit committee to consider the continuing independence of its principal accountant.


ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable.


ITEM 6. INVESTMENTS.

(a)
The schedule of investments is included as part of the report to stockholders filed under Item 1 of this Form.

(b)
Not applicable.


ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.



ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.


ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

Not applicable.


ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

During the reporting period, there were no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board.


ITEM 11. CONTROLS AND PROCEDURES.




(a)
The registrant's principal executive officer and principal financial officer have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) are effective based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.

(b)
There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.


ITEM 12. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.


ITEM 13. EXHIBITS.

(a)(1)
Registrant’s Code of Ethics for Senior Financial Officers, which is the subject of the disclosure required by Item 2 of Form N-CSR, was filed as Exhibit 12(a)(1) to American Century Asset Allocation Portfolios, Inc.’s Certified Shareholder Report on Form N-CSR, File No. 811-21591, on September 29, 2005.

(a)(2)
Separate certifications by the registrant’s principal executive officer and principal financial officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 and Rule 30a-2(a) under the Investment Company Act of 1940, are filed and attached hereto as EX-99.CERT.

(a)(3)
Not applicable.

(a)(4)
Not applicable.

(b)
A certification by the registrant’s chief executive officer and chief financial officer, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, is furnished and attached hereto as EX-99.906CERT.



SIGNATURES

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

Registrant:
American Century California Tax-Free and Municipal Funds
 
 
 
 
By:
/s/ Patrick Bannigan
 
 
Name:
Patrick Bannigan
 
 
Title:
President
 
 
 
 
 
Date:
October 25, 2019
 

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

By:
/s/ Patrick Bannigan
 
Name: Patrick Bannigan
 
 
Title: President
 
 
(principal executive officer)
 
 
 
Date:
October 25, 2019
 


By:
/s/ R. Wes Campbell
 
Name: R. Wes Campbell
 
 
Title: Treasurer, and
 
 
Chief Financial Officer
 
(principal financial officer)
 
 
 
 
Date:
October 25, 2019