N-Q 1 a_cataxfreeinc.htm JOHN HANCOCK CALIFORNIA TAX-FREE INCOME FUND a_cataxfreeinc.htm
UNITED STATES 
SECURITIES AND EXCHANGE COMMISSION 
Washington, D.C. 20549 
 
FORM N-Q 
 
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED 
MANAGEMENT INVESTMENT COMPANIES 
 
Investment Company Act file number 811- 5979 
 
John Hancock California Tax-Free Income Fund 
(Exact name of registrant as specified in charter) 
 
601 Congress Street, Boston, Massachusetts 02210 
(Address of principal executive offices) (Zip code) 
 
Michael J. Leary, Treasurer 
 
601 Congress Street 
 
Boston, Massachusetts 02210 
 
(Name and address of agent for service) 
 
Registrant's telephone number, including area code: 617-663-4490 
 
Date of fiscal year end:  May 31 
 
 
Date of reporting period:  February 28, 2010 

ITEM 1. SCHEDULE OF INVESTMENTS






John Hancock California Tax-Free Income Fund
Securities owned by the Fund on
February 28, 2010 (Unaudited)

    Maturity  Par value   
  Rate  date    Value 
 
Municipal Bonds 98.88%         $276,796,618 
(Cost $275,696,569)         
 
California 88.20 %         
ABAG Finance Authority for Nonprofit Corps.  6.250%  08/01/39  $1,000,000  1,077,440 
ABAG Finance Authority for Nonprofit Corps. (D)  5.650  08/15/38  1,000,000  957,726 
ABAG Finance Authority for Nonprofit Corps., Series A  6.125  08/15/20  2,000,000  2,043,480 
Anaheim Certificates of Participation (D)(P)  11.581  07/16/23  2,000,000  2,016,040 
Anaheim Public Financing Authority, Series C (D)  Zero  09/01/18  3,000,000  2,052,180 
Antioch Public Financing Authority, Series B  5.850  09/02/15  1,375,000  1,391,046 
Belmont Community Facilities, Series A (D)  5.750  08/01/24  1,000,000  1,093,680 
California County Securitization Agency  6.000  06/01/35  1,765,000  1,459,832 
California County Securitization Agency  Zero  06/01/21  5,000,000  4,297,800 
California County Securitization Agency, Series A  6.125  06/01/43  5,000,000  4,140,950 
California County Securitization Agency, Series A  5.500  06/01/33  975,000  823,826 
California Educational Facilities Authority  5.000  01/01/25  1,800,000  1,631,160 
California Educational Facilities Authority  5.000  02/01/26  4,525,000  3,511,310 
California Educational Facilities Authority  5.000  01/01/30  2,000,000  1,717,760 
California Educational Facilities Authority, Series A  5.500  10/01/32  1,435,000  1,453,239 
California Health Facilities Financing Authority, Series A  5.250  04/01/39  2,500,000  2,452,350 
California Health Facilities Financing Authority, Series A  5.000  11/15/36  1,000,000  964,230 
California Health Facilities Financing Authority, Series C  6.500  10/01/33  1,000,000  1,137,410 
California Health Facilities Financing Authority, Series G  5.250  07/01/23  1,000,000  1,016,620 
California Infrastructure & Economic Development Bank  5.250  10/01/34  1,000,000  959,950 
California Infrastructure & Economic Development Bank  5.000  12/01/27  500,000  502,840 
California Infrastructure & Economic Development Bank,         
Series A  6.250  02/01/39  2,000,000  2,091,980 
California Infrastructure & Economic Development Bank,         
Series A  5.550  08/01/31  3,000,000  3,028,740 
California Pollution Control Financing Authority, Series A,         
AMT (D)  5.350  12/01/16  1,000,000  1,034,810 
California Pollution Control Financing Authority, Series C,         
AMT (P)  5.125  11/01/23  2,000,000  1,987,220 
California State Public Works Board, Series A (D)  5.000  12/01/19  5,000,000  5,080,350 
California State Public Works Board, Series C  5.500  06/01/18  5,000,000  5,173,250 
California State Public Works Board, Series D  6.250  04/01/34  2,000,000  2,085,760 
California State University Revenue, Series A  5.250  11/01/34  1,000,000  1,021,110 
California Statewide Communities Development Authority  7.250  11/15/41  1,700,000  1,806,947 
California Statewide Communities Development Authority  6.250  10/01/39  2,000,000  1,957,640 
California Statewide Communities Development Authority  5.750  05/15/32  1,230,000  1,228,340 
California Statewide Communities Development Authority,         
Series A  7.250  10/01/38  2,000,000  2,043,980 
California Statewide Financing Authority, Series A  6.000  05/01/37  2,500,000  2,057,375 
California Statewide Financing Authority, Series B  6.000  05/01/37  4,000,000  3,291,800 
Capistrano Unified School District  6.000  09/01/33  750,000  703,403 
Capistrano Unified School District  5.875  09/01/23  500,000  503,060 
Center Unified School District, Series C (D)  Zero  09/01/16  2,145,000  1,652,594 
Chula Vista Redevelopment Agency, Series B  5.250  10/01/27  1,250,000  1,063,075 
Cloverdale Community Development Agency  5.500  09/01/38  3,000,000  2,315,130 
Contra Costa County Public Financing Authority, Series A (D)  5.000  06/01/28  1,230,000  1,230,209 
Corona Community Facilities District No. 97-2  5.875  09/01/23  1,150,000  1,132,624 
East Side Union High School District-Santa Clara County (D)  5.250  09/01/24  2,500,000  2,874,350 
Folsom Public Financing Authority, Series B  5.125  09/01/26  1,000,000  829,240 
Foothill Eastern Transportation Corridor Agency  Zero  01/15/25  6,615,000  2,341,379 
Foothill Eastern Transportation Corridor Agency  Zero  01/15/36  30,000,000  4,747,800 

2 



John Hancock California Tax-Free Income Fund
Securities owned by the Fund on
February 28, 2010 (Unaudited)

    Maturity  Par value   
  Rate  date    Value 
 
California (continued)          
Fresno Sewer Revenue, Series A-1 (D)  5.250%  09/01/19  $1,000,000  $1,118,920 
Fullerton Community Facilities District No: 1  6.200  09/01/32  1,000,000  967,060 
Golden State Tobacco Securitization Corp., Series 2003 A-1  6.250  06/01/33  2,490,000  2,769,801 
Golden State Tobacco Securitization Corp., Series A (D)  5.000  06/01/35  10,000,000  8,777,300 
Inglewood Unified School District (D)  5.250  10/15/26  5,000,000  5,416,950 
Irvine Mobile Home Park Revenue, Series A  5.700  03/01/28  3,975,000  3,648,176 
Kern County, Capital Improvements Project, Series A (D)  5.750  08/01/35  1,000,000  1,051,980 
Laguna-Salada Union School District, Series C (D)  Zero  08/01/26  1,000,000  359,750 
Lancaster School District (D)  Zero  04/01/19  1,730,000  1,148,426 
Lancaster School District (D)  Zero  04/01/22  1,380,000  715,433 
Lee Lake Water District Community Facilities District No: 2  6.125  09/01/27  1,200,000  1,150,920 
Long Beach Harbor Revenue, Series A, AMT  6.000  05/15/18  2,660,000  3,054,850 
Long Beach Special Tax Community  6.250  10/01/26  2,500,000  2,405,050 
Los Angeles Community College District, Series A  6.000  08/01/33  4,000,000  4,443,840 
Los Angeles Community Facilities District No: 3  6.400  09/01/22  655,000  646,688 
Los Angeles Department of Water & Power, Series A-1  5.250  07/01/38  2,000,000  2,126,200 
M-S-R Energy Authority, Series B  6.500  11/01/39  2,500,000  2,643,225 
Millbrae Residential Facility Revenue, Series A, AMT  7.375  09/01/27  2,490,000  2,417,491 
Modesto Community Facilities District No: 4-1  5.100  09/01/26  3,000,000  2,409,420 
New Haven Unified School District, Series B (D)  Zero  08/01/22  14,200,000  7,025,450 
Northern California Power Agency, Series A (D)  7.000  05/01/13  100,000  108,952 
Orange County Improvement Bond Act 1915, Series B  5.750  09/02/33  1,570,000  1,455,735 
Oxnard Community Facilities District: No. 3  5.000  09/01/35  1,500,000  1,121,250 
Paramount Unified School District, Series B (D)  Zero  09/01/25  4,735,000  1,956,171 
Pasadena Certificates of Participation  6.250  01/01/18  775,000  908,719 
Rancho Santa Fe Community Services District No: 01  6.700  09/01/30  1,000,000  1,000,630 
Ripon Redevelopment Agency (D)  4.750  11/01/36  1,690,000  1,381,575 
Riverside County Asset Leasing Corp., Series A (D)  6.500  06/01/12  1,000,000  1,043,770 
San Bernardino County, Series B  6.875  08/01/24  350,000  467,649 
San Bernardino County, Series B (D)  5.500  08/01/17  8,750,000  9,068,238 
San Bruno Park School District, Series B (D)  Zero  08/01/21  1,015,000  537,351 
San Bruno Park School District, Series B (D)  Zero  08/01/23  1,080,000  498,366 
San Diego Redevelopment Agency, Series A  5.800  09/01/28  1,395,000  1,214,919 
San Diego Redevelopment Agency, Series A  5.750  09/01/23  1,000,000  904,030 
San Diego Redevelopment Agency, Series B  Zero  09/01/17  1,600,000  980,112 
San Diego Redevelopment Agency, Series B  Zero  09/01/18  1,700,000  958,885 
San Diego Unified School District, Election of 1998, Series A (D)  Zero  07/01/21  2,500,000  1,510,500 
San Diego Unified School District, Election of 1998, Series B (D)  5.000  07/01/25  2,450,000  2,484,374 
San Francisco City & County Redevelopment Agency, Series A  6.000  08/01/25  2,500,000  2,504,275 
San Francisco City & County Redevelopment Agency, Series A  5.150  08/01/35  1,250,000  1,012,275 
San Francisco City & County Redevelopment Financing         
  Authority, Series B  6.625  08/01/39  700,000  737,506 
San Francisco City & County Redevelopment Financing         
  Authority, Series D  6.625  08/01/39  1,000,000  1,046,220 
San Francisco State Building Authority, Series A  5.000  10/01/13  1,755,000  1,836,818 
San Joaquin County (D)  5.000  11/15/29  2,965,000  2,839,284 
San Joaquin Hills Transportation Corridor Agency  Zero  01/01/14  5,000,000  4,709,850 
San Joaquin Hills Transportation Corridor Agency  Zero  01/01/22  6,500,000  4,161,300 
San Joaquin Hills Transportation Corridor Agency, Series A  5.750  01/15/21  5,000,000  4,633,350 
San Mateo County Joint Power Authority (D)  5.000  07/01/21  1,815,000  1,946,588 
Santa Ana Financing Authority, Series A (D)  6.250  07/01/19  1,790,000  2,020,624 
Santa Ana Financing Authority, Series A (D)  6.250  07/01/24  10,000,000  10,851,900 
Santa Ana Financing Authority, Series D  5.600  09/01/19  1,000,000  950,320 
Santa Clara County Financing Authority, Series B (D)  5.500  05/15/17  6,000,000  6,093,420 

3 



John Hancock California Tax-Free Income Fund

Securities owned by the Fund on February 28, 2010 (Unaudited)

    Maturity  Par value   
  Rate  date    Value 
 
California (continued)          
Santa Fe Springs Community Development Commission,         
Series A (D)  Zero  09/01/20  $1,275,000  $707,281 
Santa Margarita Water District No: 99-1  6.000%  09/01/30  500,000  587,495 
Santaluz Community Facilities District No: 2  6.375  09/01/30  1,485,000  1,485,460 
Southern California Public Power Authority, Series A  5.250  11/01/26  2,000,000  2,003,600 
State of California  6.500  04/01/33  5,000,000  5,398,350 
State of California  5.125  04/01/23  2,000,000  2,039,840 
State of California  5.125  11/01/24  1,000,000  1,012,120 
State of California  5.000  10/01/29  2,000,000  1,910,880 
State of California (D)  4.750  04/01/29  6,000,000  5,745,360 
Torrance Hospital Revenue, Series A  5.500  06/01/31  2,000,000  2,015,040 
Tuolumne Wind Project Authority, Series A  5.625  01/01/29  1,000,000  1,071,490 
Vallejo Sanitation & Flood Control District (D)  5.000  07/01/19  2,324,000  2,392,953 
West Covina Redevelopment Agency  6.000  09/01/22  3,000,000  3,306,840 
 
Puerto Rico 10.68 %         
Commonwealth of Puerto Rico  6.500  07/01/15  6,000,000  6,744,780 
Commonwealth of Puerto Rico, Series A  5.375  07/01/33  1,250,000  1,216,688 
Commonwealth of Puerto Rico, Series A  5.000  07/01/23  5,000,000  4,966,000 
Puerto Rico Aqueduct & Sewer Authority (D)(P)  11.364  07/01/11  7,500,000  8,642,250 
Puerto Rico Aqueduct & Sewer Authority, Series A   
   (Zero steps up to 6.125% on 07/01/11) Zero 07/01/24  1,750,000  1,737,523 
Puerto Rico Highway & Transportation Authority, Series A (D)  5.000  07/01/38  190,000  173,632 
Puerto Rico Highway & Transportation Authority, Series Z (D)  6.250  07/01/14  3,250,000  3,617,055 
Puerto Rico Industrial Tourist Education Medical & Environment         
   Authority  6.500  11/15/20  500,000  516,790 
Puerto Rico Sales Tax Financing Authority, Series A  Zero  08/01/32  3,000,000  2,280,270 
 
Short-Term Investments 0.10%          $270,000 
(Cost $270,000)         
 
Repurchase Agreement 0.10 %         
Repurchase Agreement with State Street Corp. dated 02/26/10 at       
   0.01% to be repurchased at $270,000 on 03/01/10, collateralized by       
   $275,000 Federal Home Loan Mortgage Corp., 2.075% due 06/18/12       
   (valued at $277,406 including interest)       270,000  270,000 
 
Total investments (Cost $275,966,569)† 98.98%         $277,066,618 
 
Other assets and liabilities, net 1.02%         $2,868,835 
 
Total net assets 100.00%         $279,935,453 

The percentage shown for each investment category is the total value of that category as a percentage of the net assets of the Fund.

AMT Interest earned from these securities may be considered a tax preference item for purpose of the Federal Alternative Minimum Tax.

(D) Bond is insured by one of these companies:

Insurance Coverage  As a % of total investments 
Ambac Financial Group, Inc.  4.83% 
Assured Guaranty Corp.  7.57% 
California Mortgage Insurance  0.35% 
Financial Guaranty Insurance Company  3.17% 
National Public Finance Guaranty Insurance Corp.  22.41% 

4 



John Hancock California Tax-Free Income Fund
Securities owned by the Fund on
February 28, 2010 (Unaudited)

(P) Variable rate obligation. The coupon rate shown represents the rate at period end.

† At February 28, 2010, the aggregate cost of investment securities for federal income tax purposes was $274,493,842. Net unrealized appreciation aggregated $2,572,776, of which $13,658,876 related to appreciated investment securities and $11,086,100 related to depreciated investment securities.

5 



Notes to the Schedule of Investments (Unaudited)

Security Valuation. Investments are stated at value as of the close of regular trading on the New York Stock Exchange (NYSE), normally at 4:00 P.M., Eastern Time. The Fund uses a three-tier hierarchy to prioritize the pricing assumptions, referred to as inputs, used in valuation techniques to measure fair value. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes significant observable inputs. Observable inputs may include quoted prices for similar securities, interest rates, prepayment speeds and credit risk. Prices for securities valued using these techniques are received from independent pricing vendors and brokers and are based on an evaluation of the inputs described. Level 3 includes significant unobservable inputs when market prices are not readily available or reliable, including the Fund’s own assumptions in determining the fair value of investments. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

As of February 28, 2010, all investments for the Fund are categorized as Level 2 under the hierarchy described above.

In order to value the securities, the Fund uses the following valuation techniques. Debt obligations are valued based on the evaluated prices provided by an independent pricing service, which utilizes both dealer-supplied and electronic data processing techniques, which take into account factors such as institutional-size trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics and other market data. Certain securities traded only in the over-the-counter market are valued at the last bid price quoted by brokers making markets in the securities at the close of trading. Certain short-term securities are valued at amortized cost.

Other portfolio securities and assets, where market quotations are not readily available, are valued at fair value, as determined in good faith by the Fund’s Pricing Committee, following procedures established by the Board of Trustees. Generally, trading in non-U.S. securities is substantially completed each day at various times prior to the close of trading on the New York Stock Exchange (NYSE). The values of non-U.S. securities, used in computing the net asset value of the Fund’s shares, are generally determined at these times. Significant market events that affect the values of non-U.S. securities may occur after the time when the valuation of the securities is generally determined and the close of the NYSE. During significant market events, these securities will be valued at fair value, as determined in good faith, following procedures established by the Board of Trustees.

Repurchase agreements. The Fund may enter into repurchase agreements. When a Fund enters into a repurchase agreement it receives collateral which is held in a segregated account by the Fund’s custodian. The collateral amount is marked-to-market and monitored on a daily basis to ensure that the collateral held is in an amount not less than the principal amount of the repurchase agreement plus any accrued interest. In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the collateral value may decline.

6 






ITEM 2. CONTROLS AND PROCEDURES.

(a) Based upon their evaluation of the registrant's disclosure controls and procedures as conducted within 90 days of the filing date of this Form N-Q, the registrant's principal executive officer and principal accounting officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms.

(b) There were no changes in the registrant's internal 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.

Separate certifications for the registrant's principal executive officer and principal accounting officer, as required by Rule 30a-2(a) under the Investment Company Act of 1940, are attached.



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.

John Hancock California Tax-Free Income Fund 
 
By:  /s/ Keith F. Hartstein 
  ------------------------------ 
  Keith F. Hartstein 
  President and Chief Executive Officer 
 
 
Date:  April 19, 2010 

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/ Keith F. Hartstein 
  ------------------------------- 
  Keith F. Hartstein 
  President and Chief Executive Officer 
 
 
Date:  April 19, 2010 
 
 
By:  /s/ Charles A. Rizzo 
  ------------------------------- 
  Charles A. Rizzo 
  Chief Financial Officer 
 
 
 
Date:  April 19, 2010