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)
Salvatore Schiavone, Treasurer
601 Congress Street
Boston, Massachusetts 02210
(Name and address of agent for service)
Registrant's telephone number, including area code: 617-663-4497
| Date of fiscal year end: | May 31 |
| Date of reporting period: | February 28, 2017 |
ITEM 1. SCHEDULE OF INVESTMENTS
John Hancock
California Tax-Free Income Fund
2SEE NOTES TO FUND'S INVESTMENTS
| Rate (% | ) | Maturity date | Par value^ | Value | ||||||||||||||||
| California (continued) | ||||||||||||||||||||
| California Statewide Communities Development Authority CHF Irvine LLC |
5.000 | 05-15-40 | 1,380,000 | $1,489,820 | ||||||||||||||||
| California Statewide Communities Development Authority Infrastructure Program Revenue, Series B |
5.000 | 09-02-44 | 1,000,000 | 1,036,290 | ||||||||||||||||
| California Statewide Communities Development Authority Kaiser Permanente, Series A |
5.000 | 04-01-42 | 3,500,000 | 3,809,190 | ||||||||||||||||
| California Statewide Communities Development Authority Los Angeles Jewish Homes, Series S (D) |
5.000 | 08-01-44 | 2,625,000 | 2,941,916 | ||||||||||||||||
| California Statewide Communities Development Authority Redlands Community Hospital OB |
5.000 | 10-01-46 | 1,000,000 | 1,068,290 | ||||||||||||||||
| California Statewide Communities Development Authority Redwoods Project (D) |
5.375 | 11-15-44 | 1,500,000 | 1,731,375 | ||||||||||||||||
| California Statewide Communities Development Authority Senior Living of Southern California (S) |
7.250 | 11-15-41 | 1,700,000 | 1,877,956 | ||||||||||||||||
| California Statewide Communities Development Authority The Culinary Institute of America Project, Series B |
5.000 | 07-01-46 | 425,000 | 456,123 | ||||||||||||||||
| California Statewide Financing Authority Tobacco Settlement, Series A |
6.000 | 05-01-37 | 2,500,000 | 2,518,200 | ||||||||||||||||
| California Statewide Financing Authority Tobacco Settlement, Series B |
6.000 | 05-01-37 | 3,000,000 | 3,020,940 | ||||||||||||||||
| City of Belmont Library Project, Series A (D) |
5.750 | 08-01-24 | 1,000,000 | 1,224,290 | ||||||||||||||||
| City of Irvine Community Facilities District |
5.000 | 09-01-49 | 2,000,000 | 2,098,540 | ||||||||||||||||
| City of La Verne Brethren Hillcrest Homes |
5.000 | 05-15-36 | 750,000 | 780,960 | ||||||||||||||||
| City of Long Beach Alamitos Bay Marina Project, Series 2015 |
5.000 | 05-15-45 | 1,000,000 | 1,071,530 | ||||||||||||||||
| City of Pasadena Old Pasadena Parking Facility Project |
6.250 | 01-01-18 | 120,000 | 124,550 | ||||||||||||||||
| City of San Clemente Community Facilities District |
5.000 | 09-01-46 | 2,000,000 | 2,098,880 | ||||||||||||||||
| City of San Francisco Public Utilities Commission Water Revenue, Series A |
5.000 | 11-01-45 | 1,500,000 | 1,656,450 | ||||||||||||||||
| City of San Mateo Community Facilities District |
5.500 | 09-01-44 | 2,000,000 | 2,125,660 | ||||||||||||||||
| East Side Union High School District-Santa Clara County 2012 Crossover, GO (D) |
5.250 | 09-01-24 | 2,500,000 | 3,038,525 | ||||||||||||||||
| Folsom Public Financing Authority Series B |
5.125 | 09-01-26 | 965,000 | 974,110 | ||||||||||||||||
| Foothill-Eastern Transportation Corridor Agency Highway Revenue Tolls, Series A |
5.750 | 01-15-46 | 5,000,000 | 5,697,800 | ||||||||||||||||
| Golden State Tobacco Securitization Corp. Series A |
5.000 | 06-01-40 | 8,250,000 | 9,124,253 | ||||||||||||||||
| Inland Valley Development Agency Series A |
5.000 | 09-01-44 | 7,500,000 | 8,174,325 | ||||||||||||||||
| Kern County Capital Improvements Project, Series A (D) |
5.750 | 08-01-35 | 1,000,000 | 1,091,670 | ||||||||||||||||
| Laguna Salada Union School District Series C, GO (D) |
2.986 (Z | ) | 08-01-26 | 1,000,000 | 754,830 | |||||||||||||||
| Lancaster School District School Improvements (D) |
1.184 (Z | ) | 04-01-19 | 1,730,000 | 1,687,425 | |||||||||||||||
| Lancaster School District School Improvements (D) |
1.756 (Z | ) | 04-01-22 | 1,380,000 | 1,261,430 | |||||||||||||||
| Long Beach Harbor Revenue Series A, AMT (D) |
6.000 | 05-15-18 | 2,660,000 | 2,822,393 | ||||||||||||||||
| Long Beach Special Tax Community Facilities District 6-Pike Project |
6.250 | 10-01-26 | 2,480,000 | 2,486,101 | ||||||||||||||||
SEE NOTES TO FUND'S INVESTMENTS3
| Rate (% | ) | Maturity date | Par value^ | Value | ||||||||||||||||
| California (continued) | ||||||||||||||||||||
| Los Angeles Community College District 2008 Election, Series A, GO |
6.000 | 08-01-33 | 4,000,000 | $4,476,720 | ||||||||||||||||
| Los Angeles Community Facilities District No: 3 Cascades Business Park |
6.400 | 09-01-22 | 440,000 | 448,650 | ||||||||||||||||
| Los Angeles County Public Works Financing Authority Series D |
5.000 | 12-01-45 | 3,000,000 | 3,382,590 | ||||||||||||||||
| Los Angeles County Regional Financing Authority Montecedro Incorporated Project, Series A (D) |
5.000 | 11-15-44 | 1,355,000 | 1,502,275 | ||||||||||||||||
| Los Angeles Department of Water & Power Power Systems, Series D |
5.000 | 07-01-44 | 1,000,000 | 1,131,580 | ||||||||||||||||
| Los Angeles Unified School District Election 2008, Series A, GO |
4.000 | 07-01-40 | 1,000,000 | 1,020,600 | ||||||||||||||||
| M-S-R Energy Authority Natural Gas Revenue, Series B |
6.500 | 11-01-39 | 3,500,000 | 4,738,615 | ||||||||||||||||
| Marin Healthcare District Election of 2013, Series B, GO |
4.000 | 08-01-45 | 1,000,000 | 1,017,170 | ||||||||||||||||
| Morgan Hill Redevelopment Agency Successor Agency Series A |
5.000 | 09-01-33 | 1,750,000 | 1,979,828 | ||||||||||||||||
| Northern California Transmission Agency California-Oregon Transmission Project |
5.000 | 05-01-36 | 2,500,000 | 2,850,975 | ||||||||||||||||
| Oakland Unified School District/Alameda County Election of 2012, GO |
6.625 | 08-01-38 | 1,000,000 | 1,197,610 | ||||||||||||||||
| Oakland Unified School District/Alameda County Series A, GO |
5.000 | 08-01-40 | 1,500,000 | 1,689,720 | ||||||||||||||||
| Orange County Improvement Bond Act 1915 Series B |
5.750 | 09-02-33 | 1,365,000 | 1,378,131 | ||||||||||||||||
| Paramount Unified School District Series B, GO (D) |
3.086 (Z | ) | 09-01-25 | 4,735,000 | 3,642,541 | |||||||||||||||
| Port of Los Angeles Series A, AMT |
5.000 | 08-01-44 | 2,000,000 | 2,193,240 | ||||||||||||||||
| River Islands Public Financing Authority Community Facilities District, 2003-1 |
5.500 | 09-01-45 | 2,000,000 | 2,108,520 | ||||||||||||||||
| Riverside County Transportation Commission Senior Lien, Series A |
5.750 | 06-01-48 | 1,000,000 | 1,119,330 | ||||||||||||||||
| San Bernardino County Capital Facilities Project, Escrowed to Maturity, Series B |
6.875 | 08-01-24 | 350,000 | 443,139 | ||||||||||||||||
| San Bernardino County Medical Center Financing Project, Series B (D) |
5.500 | 08-01-17 | 1,315,000 | 1,341,116 | ||||||||||||||||
| San Bruno Park Elementary School District School Improvements, Series B, GO (D) |
1.878 (Z | ) | 08-01-21 | 1,015,000 | 933,719 | |||||||||||||||
| San Diego County Regional Airport Authority Consol Rental Car Facilities, Seriies A |
5.000 | 07-01-44 | 4,925,000 | 5,406,123 | ||||||||||||||||
| San Diego County Regional Transportation Commission Sales & Use Tax, Series A |
5.000 | 04-01-44 | 3,000,000 | 3,382,680 | ||||||||||||||||
| San Diego Public Facilities Financing Authority Lease Revenue |
5.250 | 03-01-40 | 1,000,000 | 1,102,540 | ||||||||||||||||
| San Diego Public Facilities Financing Authority Series A |
5.000 | 10-15-44 | 1,000,000 | 1,106,150 | ||||||||||||||||
| San Diego Unified School District Series I, GO |
4.133 (Z | ) | 07-01-39 | 1,250,000 | 499,250 | |||||||||||||||
| San Diego Unified School District, Election of 1998 Series A, GO (D) |
1.918 (Z | ) | 07-01-21 | 2,500,000 | 2,299,475 | |||||||||||||||
| San Francisco City & County Airports Commission San Francisco International Airport, Series B |
5.000 | 05-01-44 | 7,890,000 | 8,740,384 | ||||||||||||||||
| San Francisco City & County Redevelopment Agency Department of General Services Lease, No. 6, Mission Bay South, Series A |
5.150 | 08-01-35 | 1,250,000 | 1,255,400 | ||||||||||||||||
| San Francisco City & County Redevelopment Agency Mission Bay South Redevelopment Project, Series B (D) |
5.000 | 08-01-43 | 570,000 | 638,121 | ||||||||||||||||
4SEE NOTES TO FUND'S INVESTMENTS
| Rate (% | ) | Maturity date | Par value^ | Value | ||||||||||||||||
| California (continued) | ||||||||||||||||||||
| San Francisco City & County Redevelopment Agency Mission Bay South Redevelopment Project, Series C (D) |
5.000 | 08-01-41 | 500,000 | $563,180 | ||||||||||||||||
| San Francisco City & County Redevelopment Agency Mission Bay South Redevelopment Project, Series D |
6.625 | 08-01-39 | 1,000,000 | 1,133,990 | ||||||||||||||||
| San Francisco City & County Redevelopment Agency Mission Bay South Redevelopment, Series D |
7.000 | 08-01-41 | 1,000,000 | 1,217,470 | ||||||||||||||||
| San Francisco City & County Redevelopment Agency San Francisco Redevelopment Projects, Series B |
6.625 | 08-01-39 | 700,000 | 783,244 | ||||||||||||||||
| San Joaquin Hills Transportation Corridor Agency Highway Revenue Tolls, Escrowed to Maturity |
1.723 (Z | ) | 01-01-22 | 6,500,000 | 5,977,010 | |||||||||||||||
| San Joaquin Hills Transportation Corridor Agency Series A |
5.000 | 01-15-44 | 2,500,000 | 2,679,675 | ||||||||||||||||
| San Mateo Foster City School District Election 2015, Series A, GO |
4.000 | 08-01-40 | 1,405,000 | 1,450,663 | ||||||||||||||||
| San Mateo Foster City School District Election 2015, Series A, GO |
4.000 | 08-01-45 | 1,875,000 | 1,929,038 | ||||||||||||||||
| San Mateo Joint Powers Financing Authority Capital Projects Program (D) |
5.000 | 07-01-21 | 1,815,000 | 2,078,538 | ||||||||||||||||
| Santa Ana Financing Authority Police Administration & Holding Facility (D) |
6.250 | 07-01-19 | 895,000 | 992,224 | ||||||||||||||||
| Santa Ana Financing Authority Police Administration & Holding Facility (D) |
6.250 | 07-01-24 | 5,000,000 | 6,108,950 | ||||||||||||||||
| Santa Ana Financing Authority Police Administration & Holding Facility, Prerefunded (D) |
6.250 | 07-01-24 | 5,000,000 | 6,093,350 | ||||||||||||||||
| Santa Fe Springs Community Development Commission Construction Redevelopment Project, Series A (D) |
1.916 (Z | ) | 09-01-20 | 1,275,000 | 1,191,755 | |||||||||||||||
| Santa Margarita Water District Community Facilities District |
5.625 | 09-01-43 | 775,000 | 844,378 | ||||||||||||||||
| South Orange County Public Financing Authority Series A |
5.000 | 08-15-33 | 1,000,000 | 1,092,980 | ||||||||||||||||
| South Orange County Public Financing Authority Series A |
5.000 | 08-15-34 | 450,000 | 490,856 | ||||||||||||||||
| Southern California Public Power Authority Natural Gas Revenue, Series A |
5.250 | 11-01-26 | 2,000,000 | 2,346,020 | ||||||||||||||||
| Southern California Public Power Authority Series A |
5.000 | 07-01-38 | 1,000,000 | 1,125,260 | ||||||||||||||||
| State of California, GO | 5.000 | 04-01-43 | 6,500,000 | 7,264,725 | ||||||||||||||||
| State of California, GO | 5.000 | 03-01-45 | 1,000,000 | 1,121,020 | ||||||||||||||||
| State of California, GO | 6.500 | 04-01-33 | 2,000,000 | 2,226,460 | ||||||||||||||||
| Stockton Public Financing Authority Delta Water Supply Project, Series A |
6.250 | 10-01-40 | 1,150,000 | 1,374,078 | ||||||||||||||||
| Sweetwater Union High School District Election of 2006, Series 2016 B, GO |
4.000 | 08-01-42 | 500,000 | 506,740 | ||||||||||||||||
| The San Francisco City & County Redevelopment Agency Mission Bay Project, Series A |
5.000 | 08-01-43 | 1,000,000 | 1,097,310 | ||||||||||||||||
| Tuolumne Wind Project Authority Tuolumne County Project, Series A |
5.625 | 01-01-29 | 1,000,000 | 1,085,710 | ||||||||||||||||
| University of California Series AM |
5.000 | 05-15-44 | 4,000,000 | 4,505,280 | ||||||||||||||||
| West Covina Redevelopment Agency Fashion Plaza |
6.000 | 09-01-22 | 3,390,000 | 3,845,040 | ||||||||||||||||
| William S Hart Union High School District Community Facilities District |
5.000 | 09-01-47 | 1,000,000 | 1,055,597 | ||||||||||||||||
| Puerto Rico 0.2% | 417,474 | |||||||||||||||||||
| Puerto Rico Industrial Tourist Education Medical & Environment Authority Hospital de la Concepcion |
6.500 | 11-15-20 | 410,000 | 417,474 | ||||||||||||||||
SEE NOTES TO FUND'S INVESTMENTS5
| Yield | * (%) | Maturity date | Par value^ | Value | ||||||||||||||||
| Short-term investments 1.2% | $3,038,000 | |||||||||||||||||||
| (Cost $3,038,000) | ||||||||||||||||||||
| U.S. Government Agency 1.2% | 3,038,000 | |||||||||||||||||||
| Federal Home Loan Bank Discount Note | 0.350 | 03-01-17 | 3,038,000 | 3,038,000 | ||||||||||||||||
| Total investments (Cost $235,076,478)† 98.9% | $249,309,427 | |||||||||||||||||||
| Other assets and liabilities, net 1.1% | $2,858,733 | |||||||||||||||||||
| Total net assets 100.0% | $252,168,160 | |||||||||||||||||||
| The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund. | ||||||||||||||||||||
| ^All par values are denominated in U.S. dollars unless otherwise indicated. | ||||||||||||||||||||
| Security Abbreviations and Legend | ||||||||||||||||||||
| AMT | Interest earned from these securities may be considered a tax preference item for purpose of the Federal Alternative Minimum Tax. | |||||||||||||||||||
| GO | General Obligation | |||||||||||||||||||
| (D) | Bond is insured by one or more of the companies listed in the insurance coverage table below. | |||||||||||||||||||
| (S) | These securities are exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be resold, normally to qualified institutional buyers, in transactions exempt from registration. | |||||||||||||||||||
| (Z) | Zero coupon bonds are issued at a discount from their principal amount in lieu of paying interest periodically. Rate shown is the effective yield at period end. | |||||||||||||||||||
| * | Yield represents either the annualized yield at the date of purchase, the stated coupon rate or, for floating rate securities, the rate at period end. | |||||||||||||||||||
| † | At 2-28-17, the aggregate cost of investment securities for federal income tax purposes was $233,431,849. Net unrealized appreciation aggregated to $15,877,578, of which $16,784,555 related to appreciated investment securities and $906,977 related to depreciated investment securities. | |||||||||||||||||||
| Insurance coverage | As a % of total investments | ||||
| National Public Finance Guarantee Corp. | 10.4 | ||||
| Assured Guaranty Municipal Corp. | 3.9 | ||||
| California Mortgage Insurance | 2.9 | ||||
| Ambac Financial Group, Inc. | 1.9 | ||||
| Build America Mutual Assurance Company | 0.9 | ||||
| Assured Guaranty Corp. | 0.4 | ||||
| Total | 20.4 |
The fund had the following sector composition as a percentage of net assets on 2-28-17:
| General obligation bonds | 13.9% | ||||
| Revenue bonds | 83.8% | ||||
| Other Revenue | 15.6% | ||||
| Facilities | 15.3% | ||||
| Health Care | 13.1% | ||||
| Tobacco | 8.6% | ||||
| Transportation | 8.6% | ||||
| Education | 7.3% | ||||
| Airport | 5.6% | ||||
| Development | 5.1% | ||||
| Utilities | 3.1% | ||||
| Water & Sewer | 0.9% | ||||
| Housing | 0.6% | ||||
| Short-term investments and other | 2.3% | ||||
| TOTAL | 100.0% |
6SEE NOTES TO FUND'S INVESTMENTS
Notes to Fund's investments (unaudited)
Security valuation. Investments are stated at value as of the scheduled close of regular trading on the New York Stock Exchange (NYSE), normally at 4:00 p.m., Eastern Time. In case of emergency or other disruption resulting in the NYSE not opening for trading or the NYSE closing at a time other than the regularly scheduled close, the net asset value may be determined as of the regularly scheduled close of the NYSE pursuant to the fund's Valuation Policies and Procedures.
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 vendor or from broker-dealers. Independent pricing vendors utilize matrix pricing which takes 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, as well as broker supplied prices.
Other portfolio securities and assets, for which reliable 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. The frequency with which these fair valuation procedures are used cannot be predicted and fair value of securities may differ significantly from the value that would have been used had a ready market for such securities existed.
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 securities valued using quoted prices in active markets for identical securities. Level 2 includes securities valued using other 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 inputs are received from independent pricing vendors and brokers and are based on an evaluation of the inputs described. Level 3 includes securities valued using 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. Factors used in determining value may include market or issuer specific events or trends, changes in interest rates and credit quality. The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Changes in valuation techniques and related inputs may result in transfers into or out of an assigned level within the disclosure hierarchy.
As of February 28, 2017, all investments are categorized as Level 2 under the hierarchy described above.
For additional information on the fund's significant accounting policies, please refer to the fund's most recent semiannual or annual shareholder report.
More information
| How to contact us | ||
| Internet | www.jhinvestments.com | |
| Regular mail: John Hancock Signature Services, Inc. P.O. Box 55913 Boston, MA 02205-5913 |
Express mail: John Hancock Signature Services, Inc. 30 Dan Road Canton, MA 02021 |
|
| Phone | Customer service representatives EASI-Line TDD line |
800-225-5291 800-338-8080 800-231-5469 |
| 53Q3 | 02/17 | |
| This report is for the information of the shareholders of John Hancock California Tax-Free Income Fund. | 4/17 |
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/ Andrew Arnott
_________________________
Andrew Arnott
President
Date: April 19, 2017
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/ Andrew Arnott
_________________________
Andrew Arnott
President
Date: April 19, 2017
By:
/s/ Charles A. Rizzo
_________________________
Charles A. Rizzo
Chief Financial Officer
Date: April 19, 2017