0000950123-11-068822.txt : 20110727 0000950123-11-068822.hdr.sgml : 20110727 20110727135020 ACCESSION NUMBER: 0000950123-11-068822 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20110531 FILED AS OF DATE: 20110727 DATE AS OF CHANGE: 20110727 EFFECTIVENESS DATE: 20110727 FILER: COMPANY DATA: COMPANY CONFORMED NAME: RIVERSOURCE CALIFORNIA TAX-EXEMPT TRUST CENTRAL INDEX KEY: 0000792717 IRS NUMBER: 411560213 STATE OF INCORPORATION: MN FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-04646 FILM NUMBER: 11989655 BUSINESS ADDRESS: STREET 1: 50606 AMERIPRISE FINANCIAL CENTER STREET 2: H27/5228 CITY: MINNEAPOLIS STATE: MN ZIP: 55474 BUSINESS PHONE: 612-671-4321 MAIL ADDRESS: STREET 1: 50606 AMERIPRISE FINANCIAL CENTER STREET 2: H27/5228 CITY: MINNEAPOLIS STATE: MN ZIP: 55474 FORMER COMPANY: FORMER CONFORMED NAME: AXP CALIFORNIA TAX-EXEMPT TRUST DATE OF NAME CHANGE: 19990628 FORMER COMPANY: FORMER CONFORMED NAME: IDS CALIFORNIA TAX EXEMPT TRUST DATE OF NAME CHANGE: 19920703 0000792717 S000003336 RiverSource California Tax-Exempt Fund C000009057 RiverSource California Tax-Exempt Fund Class C RCTCX C000009058 RiverSource California Tax-Exempt Fund Class A ICALX C000009059 RiverSource California Tax-Exempt Fund Class B ACABX N-Q 1 c65269nvq.htm FORM N-Q nvq
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number 811-4646
RIVERSOURCE CALIFORNIA TAX-EXEMPT TRUST
(Exact name of registrant as specified in charter)
50606 Ameriprise Financial Center, Minneapolis, Minnesota 55474
(Address of principal executive offices)                                 (Zip code)
Scott R. Plummer — 5228 Ameriprise Financial Center, Minneapolis, MN 55474
(Name and address of agent for service)
Registrant’s telephone number, including area code: (612) 671-1947
Date of fiscal year end: August 31
Date of reporting period: May 31, 2011
 
 
Item 1.   Schedule of Investments

 


 

Portfolio of Investments
RiverSource California Tax-Exempt Fund
May 31, 2011 (Unaudited)
(Percentages represent value of investments compared to net assets)
Investments in Securities
Municipal Bonds (95.1%)
                         
Issue   Coupon     Principal        
description(d,e)   Rate     Amount     Value(a)  
Advanced Refunded (0.6%)
                       
California Health Facilities Financing Authority
                       
Prerefunded Revenue Bonds
                       
Providence Health
                       
Series 2008
                       
10-01-38 
    6.500 %   $ 30,000     $ 38,956  
Los Angeles Harbor Department
                       
Revenue Bonds
                       
Series 1988 Escrowed to Maturity
                       
10-01-18 
    7.600       665,000       802,149  
 
                     
Total
                    841,105  
 
                     
 
                       
Airport (3.3%)
                       
County of Sacramento
                       
Revenue Bonds
                       
Senior Series 2009B
                       
07-01-39 
    5.750       2,000,000       2,050,100  
Los Angeles Department of Airports
                       
Subordinated Revenue Bonds
                       
Los Angeles International
                       
Series 2010B
                       
05-15-35 
    5.000       1,000,000       988,960  
San Diego County Regional Airport Authority
                       
Subordinated Revenue Bonds
                       
Series 2010A
                       
07-01-34 
    5.000       1,350,000       1,305,086  
 
                     
Total
                    4,344,146  
 
                     
 
                       
College (6.0%)
                       
California Educational Facilities Authority
                       
Revenue Bonds
                       
Loyola Marymount University
                       
Series 2010A
                       
10-01-40 
    5.125       850,000       814,513  
California Municipal Finance Authority
                       
Revenue Bonds
                       
Biola University
                       
Series 2008
                       
10-01-28 
    5.800       2,000,000       1,982,560  
California Municipal Finance Authority
                       
Revenue Bonds
                       
Loma Linda University
                       
Series 2007
                       
04-01-32 
    4.750       2,300,000       2,090,125  
California Statewide Communities Development Authority
                       
Revenue Bonds
                       
Polytechnic School
                       
Series 2009
                       
12-01-34 
    5.000       500,000       488,515  

 


 

                         
Issue   Coupon     Principal        
description(d,e)   Rate     Amount     Value(a)  
California Statewide Communities Development Authority
                       
Revenue Bonds
                       
Thomas Jefferson School of Law
                       
Series 2008A
                       
10-01-38 
    7.250       1,000,000  (b)     1,010,880  
University of California
                       
Revenue Bonds
                       
Series 2008D
                       
05-15-27 
    5.000       1,500,000       1,535,625  
 
                     
Total
                    7,922,218  
 
                     
 
                       
Electric (8.3%)
                       
California State Department of Water Resources
                       
Revenue Bonds
                       
Series 2010L
                       
05-01-14 
    5.000       1,435,000       1,605,751  
California State Department of Water Resources
                       
Revenue Bonds
                       
Series 2010M
                       
05-01-15 
    5.000       3,500,000       4,013,134  
California Statewide Communities Development Authority
                       
Refunding Revenue Bonds
                       
Southern California Education
                       
Series 2010A
                       
09-01-29 
    4.500       1,310,000       1,254,797  
City of Vernon
                       
Revenue Bonds
                       
Series 2009A
                       
08-01-21 
    5.125       1,500,000       1,538,835  
Walnut Energy Center Authority
                       
Revenue Bonds
                       
Series 2004A (AMBAC)
                       
01-01-29 
    5.000       2,500,000       2,499,900  
 
                     
Total
                    10,912,417  
 
                     
 
                       
Health Care — Hospital (19.3%)
                       
California Health Facilities Financing Authority
                       
Refunding Revenue Bonds
                       
Cedars-Sinai Medical Center
                       
Series 2005
                       
11-15-34 
    5.000       1,525,000       1,402,573  
California Health Facilities Financing Authority
                       
Revenue Bonds
                       
Adventist Health System West
                       
Series 2009A
                       
09-01-39 
    5.750       3,000,000       2,938,170  
California Health Facilities Financing Authority
                       
Revenue Bonds
                       
Cedars-Sinai Medical Center
                       
Series 2009
                       
08-15-39 
    5.000       1,500,000       1,361,190  
California Health Facilities Financing Authority
                       
Revenue Bonds
                       
Providence Health & Services
                       
Series 2008C
                       
10-01-28 
    6.250       500,000       556,080  

 


 

                         
Issue   Coupon     Principal        
description(d,e)   Rate     Amount     Value(a)  
California Health Facilities Financing Authority
                       
Revenue Bonds
                       
Sutter Health
                       
Series 2008A
                       
08-15-30 
    5.000       2,500,000       2,384,050  
California Health Facilities Financing Authority
                       
Unrefunded Revenue Bonds
                       
Providence
                       
Series 2008
                       
10-01-38 
    6.500       1,470,000       1,599,154  
California Municipal Finance Authority
                       
Revenue Bonds
                       
Community Hospitals
                       
Series 2009
                       
02-01-39 
    5.500       3,250,000       2,754,050  
California Statewide Communities Development Authority
                       
Revenue Bonds
                       
Catholic Healthcare West
                       
Series 2008B
                       
07-01-30 
    5.500       1,975,000       1,982,999  
California Statewide Communities Development Authority
                       
Revenue Bonds
                       
Cottage Health Obligation Group
                       
Series 2010
                       
11-01-30 
    5.250       300,000       297,105  
California Statewide Communities Development Authority
                       
Revenue Bonds
                       
John Muir Health
                       
Series 2006A
                       
08-15-32 
    5.000       2,450,000       2,265,809  
California Statewide Communities Development Authority
                       
Revenue Bonds
                       
Kaiser Permanente
                       
Series 2006B
                       
03-01-45 
    5.250       1,000,000       911,990  
City of Torrance
                       
Revenue Bonds
                       
Torrance Memorial Medical Center
                       
Series 2010A
                       
09-01-30 
    5.000       2,100,000       1,973,727  
City of Turlock
                       
Certificate of Participation
                       
Emanuel Medical Center
                       
Series 2007A
                       
10-15-31 
    5.125       3,930,000       3,176,226  
Sierra View Local Health Care District
                       
Revenue Bonds
                       
Series 2007
                       
07-01-37 
    5.250       2,000,000       1,813,140  
 
                     
Total
                    25,416,263  
 
                     
 
                       
Housing — Other (1.1%)
                       
California Statewide Communities Development Authority
                       
Revenue Bonds
                       
CHF — Irvine LLC — UCI East Campus
                       
Series 2008
                       
05-15-32 
    5.750       1,500,000       1,448,625  

 


 

                         
Issue   Coupon     Principal        
description(d,e)   Rate     Amount     Value(a)  
Housing — Single Family (1.2%)
                       
California Housing Finance Agency
                       
Revenue Bonds
                       
Home Mortgage
                       
Series 2006H (FGIC) A.M.T.
                       
08-01-30 
    5.750       965,000       977,409  
California Housing Finance Agency
                       
Revenue Bonds
                       
Home Mortgage
                       
Series 2006K A.M.T.
                       
02-01-42 
    5.500       570,000       579,320  
 
                     
Total
                    1,556,729  
 
                     
 
                       
Lease (3.7%)
                       
California Statewide Communities Development Authority
                       
Revenue Bonds
                       
Proposition 1A Receivables Program
                       
Series 2009
                       
06-15-13 
    5.000       1,000,000       1,070,710  
Los Angeles Municipal Improvement Corp.
                       
Revenue Bonds
                       
Series 2008B
                       
09-01-38 
    5.000       3,000,000       2,797,200  
San Mateo County Board of Education
                       
Refunding Certificate of Participation
                       
Series 2009
                       
06-01-35
    5.250       1,000,000       1,023,600  
 
                     
Total
                    4,891,510  
 
                     
 
                       
Miscellaneous Revenue (2.0%)
                       
California Infrastructure & Economic Development Bank
                       
Revenue Bonds
                       
Series 2008
                       
02-01-33
    5.250       2,600,000       2,628,938  
 
                       
Port District (0.8%)
                       
Port of Oakland
                       
Unrefunded Revenue Bonds
                       
Series 2000K (NPFGC/FGIC) A.M.T.
                       
11-01-18 
    5.625       995,000       996,323  
 
                       
Sales or Use Tax (0.8%)
                       
Riverside County Transportation Commission
                       
Limited Tax Revenue Bonds
                       
Series 2010A
                       
06-01-32 
    5.000       1,000,000       1,005,760  
 
                       
School (13.2%)
                       
Alhambra Unified School District
                       
Unlimited General Obligation Bonds
                       
Capital Appreciation
                       
Zero Coupon
                       
Series 1999A (AGM)
                       
09-01-22 
    5.950       1,055,000  (c)     559,561  
Centinela Valley Union High School District
                       
Unlimited General Obligation Bonds
                       
Series 2002A (NPFGC)
                       
08-01-31 
    5.250       2,000,000       1,934,640  

 


 

                         
Issue   Coupon     Principal        
description(d,e)   Rate     Amount     Value(a)  
Chabot-Las Positas Community College District
                       
Unlimited General Obligation Bonds
                       
Capital Appreciation Election of 2004
                       
Zero Coupon
                       
Series 2006B (AMBAC)
                       
08-01-19 
    4.745       1,000,000  (c)     688,110  
Encinitas Union School District
                       
Unlimited General Obligation Bonds
                       
Capital Appreciation
                       
Zero Coupon
                       
Series 1996 (NPFGC)
                       
08-01-15 
    5.850       2,500,000  (c)     2,190,875  
Lakeside Union School District San Diego County
                       
Unlimited General Obligation Bonds
                       
Series 2009
                       
08-01-33 
    5.000       1,750,000       1,800,698  
Menifee Union School District
                       
Unlimited General Obligation Bonds
                       
Election of 2008
                       
Series 2008A
                       
08-01-33 
    5.500       3,125,000       3,223,593  
Merced Community College District
                       
Refunding Revenue Bonds
                       
School Facilities Financing Authority
                       
Series 2006 (NPFGC)
                       
08-01-21 
    5.000       700,000       799,309  
San Bernardino Community College District
                       
Unlimited General Obligation Bonds
                       
Election of 2002
                       
Series 2008A
                       
08-01-33 
    6.250       1,000,000       1,110,640  
San Juan Unified School District
                       
Unlimited General Obligation Bonds
                       
Capital Appreciation
                       
Zero Coupon
                       
Series 1999 (AGM)
                       
08-01-21 
    5.680       820,000  (c)     494,452  
08-01-24 
    5.700       1,810,000  (c)     851,714  
San Mateo County Community College District
                       
Unlimited General Obligation Bonds
                       
Election of 2001
                       
Series 2002A (NPFGC/FGIC)
                       
09-01-18 
    5.375       1,000,000       1,048,680  
Simi Valley School Financing Authority
                       
Refunding Revenue Bonds
                       
Unified School District
                       
Series 2007 (AGM)
                       
08-01-23 
    5.000       1,500,000       1,640,175  
Twin Rivers Unified School District
                       
Unlimited General Obligation Bonds
                       
Election of 2006
                       
Series 2008 (AGM)
                       
08-01-25 
    5.000       1,000,000       1,046,110  
 
                     
Total
                    17,388,557  
 
                     
 
                       
Special District — Assessment (1.1%)
                       
Anaheim Community Facilities District No. 06-2
                       
Special Tax Bonds
                       
Stadium Lofts
                       
Series 2007
                       
09-01-37 
    5.000       1,000,000       774,920  

 


 

                         
Issue   Coupon     Principal        
description(d,e)   Rate     Amount     Value(a)  
Orange Unified School District No. 2005-2 Community Facilities
                       
Special Tax Bonds
                       
Del Rio School Facilities
                       
Series 2007
                       
09-01-37
    5.000       1,000,000       730,050  
 
                     
Total
                    1,504,970  
 
                     
 
                       
Special District — Tax Allocation (14.4%)
                       
Bakersfield Redevelopment Agency
                       
Tax Allocation Bonds
                       
Old Town Kern Pioneer
                       
Series 2009A
                       
08-01-29 
    7.500       1,615,000       1,604,470  
Bakersfield Redevelopment Agency
                       
Tax Allocation Bonds
                       
Southeast Bakersfield
                       
Series 2009B
                       
08-01-29 
    7.250       720,000       727,970  
Carson Redevelopment Agency
                       
Tax Allocation Bonds
                       
Housing
                       
Series 2010A
                       
10-01-30 
    5.000       1,300,000       1,150,955  
County of Riverside Economic Development Agency
                       
Tax Allocation Bonds
                       
Housing
                       
Series 2010A
                       
10-01-39 
    6.000       1,350,000       1,267,934  
Folsom Redevelopment Agency
                       
Tax Allocation Bonds
                       
Central Folsom Redevelopment Project
                       
Series 2009
                       
08-01-29 
    5.125       800,000       738,096  
08-01-36 
    5.500       800,000       726,200  
Inglewood Redevelopment Agency
                       
Refunding Tax Allocation Bonds
                       
Merged Redevelopment Project
                       
Series 1998A (AMBAC)
                       
05-01-23 
    5.250       1,100,000       993,872  
Lammersville School District No. 2002 Community Facilities
                       
Special Tax Bonds
                       
Mountain House
                       
Series 2006
                       
09-01-35 
    5.125       1,000,000       802,240  
Palmdale Civic Authority
                       
Refunding Revenue Bonds
                       
Redevelopment Project No. 1
                       
Series 2009A
                       
07-01-27 
    6.000       2,780,000       2,886,085  
Pittsburg Redevelopment Agency
                       
Tax Allocation Bonds
                       
Los Medanos Community Development Project
                       
Zero Coupon
                       
Series 1999 (AMBAC)
                       
08-01-24 
    6.050       2,100,000  (c)     862,050  
Rancho Cucamonga Redevelopment Agency
                       
Tax Allocation Bonds
                       
Housing Set Aside
                       
Series 2007A (NPFGC)
                       
09-01-34 
    5.000       2,200,000       1,813,658  

 


 

                         
Issue   Coupon     Principal        
description(d,e)   Rate     Amount     Value(a)  
San Francisco City & County Redevelopment Agency
                       
Tax Allocation Bonds
                       
Mission Bay North Redevelopment
                       
Series 2009C
                       
08-01-29 
    6.000       500,000       475,050  
08-01-39 
    6.500       1,625,000       1,637,074  
San Francisco City & County Redevelopment Agency
                       
Tax Allocation Bonds
                       
Mission Bay South Redevelopment
                       
Series 2009D
                       
08-01-29 
    6.375       500,000       488,135  
San Francisco City & County Redevelopment Agency
                       
Tax Allocation Bonds
                       
Redevelopment Projects
                       
Series 2009B
                       
08-01-28 
    6.125       310,000       303,943  
San Francisco City & County Redevelopment Agency
                       
Tax Allocation Bonds
                       
Redevelopment Projects
                       
Series 2011B
                       
08-01-31 
    6.250       875,000       893,996  
Santee Community Development Commission
                       
Tax Allocation Bonds
                       
Redevelopment Project
                       
Series 2011A
                       
08-01-31 
    7.000       225,000       234,099  
Yorba Linda Redevelopment Agency
                       
Tax Allocation Bonds
                       
Subordinated Lien
                       
Redevelopment Project
                       
Series 2011A
                       
09-01-26 
    6.000       820,000       828,036  
09-01-32 
    6.500       540,000       544,752  
 
                     
Total
                    18,978,615  
 
                     
 
                       
State (13.4%)
                       
State of California
                       
Unlimited General Obligation Bonds
                       
Series 2004
                       
02-01-22 
    5.000       1,000,000       1,033,360  
State of California
                       
Unlimited General Obligation Bonds
                       
Various Purpose
                       
Series 2003
                       
11-01-24 
    5.125       2,000,000       2,052,660  
State of California
                       
Unlimited General Obligation Bonds
                       
Various Purpose
                       
Series 2007
                       
12-01-32 
    5.000       4,000,000       3,984,361  
State of California
                       
Unlimited General Obligation Bonds
                       
Various Purpose
                       
Series 2009
                       
04-01-31 
    5.750       1,000,000       1,071,460  

 


 

                         
Issue   Coupon     Principal        
description(d,e)   Rate     Amount     Value(a)  
State of California
                       
Unlimited General Obligation Bonds
                       
Various Purpose
                       
Series 2010
                       
03-01-24 
    5.250       1,000,000       1,071,390  
03-01-30 
    5.250       1,000,000       1,027,450  
State of California
                       
Unlimited General Obligation Refunding Bonds
                       
Series 2007
                       
08-01-30 
    4.500       3,340,000       3,057,870  
State of California
                       
Unlimited General Obligation Refunding Bonds
                       
Various Purpose
                       
Series 2008
                       
04-01-18 
    5.000       1,235,000       1,420,929  
04-01-38 
    5.000       3,000,000       2,892,480  
State of California
                       
Unrefunded Unlimited General Obligation Bonds
                       
Series 2004
                       
04-01-29 
    5.300       2,000       2,027  
 
                     
Total
                    17,613,987  
 
                     
 
                       
Toll Road (0.8%)
                       
San Joaquin Hills Transportation Corridor Agency
                       
Revenue Bonds
                       
Senior Lien
                       
Series 1993
                       
01-01-33 
    5.000       1,400,000       1,005,116  
 
                       
Water & Sewer (5.1%)
                       
Anaheim Public Financing Authority
                       
Revenue Bonds
                       
Series 2007 (NPFGC)
                       
02-01-33 
    4.750       2,795,000       2,761,292  
Eastern Municipal Water District
                       
Certificate of Participation
                       
Series 2008H
                       
07-01-33 
    5.000       1,000,000       1,005,290  
Eastern Municipal Water District No. 2004-27
                       
Special Tax Bonds
                       
Cottonwood
                       
Series 2006
                       
09-01-27 
    5.000       200,000       171,948  
09-01-36 
    5.000       500,000       387,095  
Rowland Water District
                       
Certificate of Participation
                       
Recycled Water Project
                       
Series 2008
                       
12-01-39 
    6.250       2,235,000       2,370,687  
 
                     
Total
                    6,696,312  
 
                     
Total Municipal Bonds
(Cost: $127,749,915)
                  $ 125,151,591  
 
                     

 


 

Municipal Notes (3.4%)
                         
            Amount        
Issue   Effective     payable at        
description(d,e,f)   yield     maturity     Value(a)  
Abag Finance Authortiy for Nonprofit Corporations
                       
Revenue Bonds
                       
Hebrew Disabled Home
                       
V.R.D.N. Series 2005 (Wells Fargo Bank)
                       
11-15-35
    0.080 %   $ 2,000,000     $ 2,000,000  
California Pollution Control Financing Authority
                       
Revenue Bonds
                       
Pacific Gas & Electric Co.
                       
V.R.D.N. Series 1996 (JP Morgan Chase Bank)
                       
11-01-26
    0.130       2,500,000       2,500,000  
 
                     
Total Municipal Notes
(Cost: $4,500,000)
                  $ 4,500,000  
 
                     
Money Market Fund (0.2%)
                 
    Shares     Value(a)  
JPMorgan Tax-Free Money Market Fund, 0.000%
    281,210  (g)   $ 281,210  
 
             
Total Money Market Fund
(Cost: $281,210)
          $ 281,210  
 
             
 
               
Total Investments in Securities
(Cost: $132,531,125)(h)
          $ 129,932,801  
 
             
Notes to Portfolio of Investments
(a)   Securities are valued by using policies described in Note 2 to the financial statements in the most recent Semiannual Report dated Feb. 28, 2011.
 
(b)   Represents a security sold under Rule 144A, which is exempt from registration under the Securities Act of 1933, as amended. This security may be determined to be liquid under guidelines established by the Fund’s Board of Directors. This security may be resold in transactions exempt from registration, normally to qualified institutional buyers. At May 31, 2011, the value of these securities amounted to $1,010,880 or 0.77% of net assets.
 
(c)   For zero coupons, the interest rate disclosed represents the annualized effective yield on the date of acquisition.
 
(d)   The following abbreviations may be used in the portfolio security descriptions to identify the insurer and/or guarantor of the issue:
         
ACA
    ACA Financial Guaranty Corporation
AGCP
    Assured Guaranty Corporation
AGM
    Assured Guaranty Municipal Corporation
AMBAC
    Ambac Assurance Corporation
BHAC
    Berkshire Hathaway Assurance Corporation
BIG
    Bond Investors Guarantee
BNY
    Bank of New York
CGIC
    Capital Guaranty Insurance Company
CIFG
    IXIS Financial Guaranty
FGIC
    Financial Guaranty Insurance Company
FHA
    Federal Housing Authority
FHLMC
    Federal Home Loan Mortgage Corporation
FNMA
    Federal National Mortgage Association
GNMA
    Government National Mortgage Association
MGIC
    Mortgage Guaranty Insurance Corporation
NPFGC
    National Public Finance Guarantee Corporation
TCRS
    Transferable Custodial Receipts
XLCA
    XL Capital Assurance
(e)   The following abbreviations may be used in the portfolio descriptions:

 


 

         
A.M.T.
    Alternative Minimum Tax — At May 31, 2011, the value of securities subject to alternative minimum tax represented 1.94% of net assets.
B.A.N.
    Bond Anticipation Note
C.P.
    Commercial Paper
R.A.N.
    Revenue Anticipation Note
T.A.N.
    Tax Anticipation Note
T.R.A.N.
    Tax & Revenue Anticipation Note
V.R.
    Variable Rate
V.R.D.B.
    Variable Rate Demand Bond
V.R.D.N.
    Variable Rate Demand Note
(f)   The maturity date disclosed represents the final maturity. Interest rate varies to reflect current market conditions; rate shown is the effective rate on May 31, 2011.
 
(g)   The rate shown is the seven-day current annualized yield at May 31, 2011.
 
(h)   At May 31, 2011, the cost of securities for federal income tax purposes was approximately $132,531,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was:
         
Unrealized appreciation
  $ 2,411,000  
Unrealized depreciation
    (5,009,000 )
 
Net unrealized depreciation
  $ (2,598,000 )
 
Fair Value Measurements
Generally accepted accounting principles (GAAP) require disclosure regarding the inputs and valuation techniques used to measure fair value and any changes in valuation inputs or techniques. In addition, investments shall be disclosed by major category.
The Fund categorizes its fair value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when available. Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that reflect the Fund’s assumptions about the information market participants would use in pricing an investment. An investment’s level within the fair value hierarchy is based on the lowest level of any input that is deemed significant to the asset or liability’s fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example, certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
    Level 1 — Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date (including NAV for open-end mutual funds). Valuation adjustments are not applied to Level 1 investments.
 
    Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.).
 
    Level 3 — Valuations based on significant unobservable inputs (including the Fund’s own assumptions and judgment in determining the fair value of investments).
Inputs that are used in determining fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs will be considered by the Fund Administrator, along with any other relevant factors in the calculation of an investment’s fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels within the hierarchy.
Investments falling into the Level 3 category are primarily supported by quoted prices from brokers and dealers participating in the market for those investments. However, these may be classified as Level 3 investments due to lack of market transparency and corroboration to support these quoted prices. Additionally, valuation models may be used as the pricing source for any remaining investments classified as Level 3. These models rely on one or more significant unobservable inputs and/or significant assumptions by the Fund Administrator. Inputs used in valuations may include, but are not limited to, financial statement analysis, capital account balances, discount rates and estimated cash flows, and comparable company data.
The following table is a summary of the inputs used to value the Fund’s investments as of May 31, 2011:
                                 
    Fair value at May 31, 2011
    Level 1   Level 2        
    quoted prices   other   Level 3    
    in active   significant   significant    
    markets for   observable   unobservable    
Description(a)   identical assets   inputs(b)   inputs   Total
 
Bonds
                               
Municipal Bonds
  $     $ 125,151,591     $     $ 125,151,591  
 
Total Bonds
          125,151,591             125,151,591  
 
 
                               
Other
                               
Municipal Notes
          4,500,000             4,500,000  
Unaffiliated Money Market Fund(c)
    281,210                   281,210  
 
Total Other
    281,210       4,500,000             4,781,210  
 
Total
  $ 281,210     $ 129,651,591     $     $ 129,932,801  
 
(a)   See the Portfolio of Investments for all investment classifications not indicated in the table.
 
(b)   There were no significant transfers between Levels 1 and 2 during the period.
 
(c)   Money market fund that is a sweep investment for cash balances in the Fund at May 31, 2011.

 


 

Item 2.   Control and Procedures.
(a) The registrant’s principal executive officer and principal financial officer, based on their evaluation of the registrant’s disclosure controls and procedures as of a date within 90 days of the filing of this report, have concluded that such controls and procedures are adequately designed to ensure that material information required to be disclosed by the registrant in Form N-Q is accumulated and communicated to the registrant’s management, including the principal executive officer and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.
(b) There was no change in the registrant’s internal control over financial reporting that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 3.   Exhibits.
Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) attached hereto as Exhibit 99.CERT.

 


 

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)   RiverSource California Tax-Exempt Trust
       
By   /s/ J. Kevin Connaughton
 
J. Kevin Connaughton
President and Principal Executive Officer
     
Date   July 22, 2011  
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
       
By   /s/ J. Kevin Connaughton
 
J. Kevin Connaughton
President and Principal Executive Officer
     
Date   July 22, 2011
     
     
By   /s/ Michael G. Clarke
 
Michael G. Clarke
Treasurer and Principal Financial Officer
     
Date   July 22, 2011

 

EX-99.CERT 2 c65269exv99wcert.htm EX-99.CERT exv99wcert
Certification Pursuant to
270.30a-2 of the Investment Company Act of 1940
I, J. Kevin Connaughton, certify that:
  1.   I have reviewed this report on Form N-Q of RiverSource California Tax-Exempt Trust;
 
  2.   Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
 
  3.   Based on my knowledge, the schedule(s) of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;
 
  4.   The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
  a)   Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
 
  b)   Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
 
  c)   Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
 
  d)   Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
  5.   The registrant’s other certifying officer(s) and I have disclosed, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
  a)   All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
 
  b)   Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
         
     
Date: July 22, 2011  /s/ J. Kevin Connaughton    
  J. Kevin Connaughton   
  President and Principal Executive Officer   

 


 

Certification Pursuant to
270.30a-2 of the Investment Company Act of 1940
I, Michael G. Clarke, certify that:
  1.   I have reviewed this report on Form N-Q of RiverSource California Tax-Exempt Trust;
 
  2.   Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
 
  3.   Based on my knowledge, the schedule(s) of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;
 
  4.   The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
  a)   Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
 
  b)   Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
 
  c)   Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
 
  d)   Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
  5.   The registrant’s other certifying officer(s) and I have disclosed, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
  a)   All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
 
  b)   Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
         
     
Date: July 22, 2011  /s/ Michael G. Clarke    
  Michael G. Clarke   
  Treasurer and Principal Financial Officer