N-Q 1 d323180.htm N-Q

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811- 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

Quarterly portfolio holdings 2/28/17

jhnq_logo.jpg


Fund's investmentsCalifornia Tax-Free Income Fund



                                         
  As of 2-28-17 (unaudited)  
        Rate (% )    Maturity date     Par value^     Value  
  Municipal bonds 97.7%     $246,271,427  
  (Cost $232,038,478)  
  California 97.5%     245,853,953  
  ABAG Finance Authority for Nonprofit Corps.
Institute on Aging (D)
    5.650     08-15-38     1,000,000     1,054,710  
  ABAG Finance Authority for Nonprofit Corps.
Sharp Healthcare
    6.250     08-01-39     1,000,000     1,107,630  
  ABAG Finance Authority for Nonprofit Corps.
Sharp HealthCare, Series A
    5.000     08-01-43     2,000,000     2,208,760  
  Anaheim Public Financing Authority
Series A
    5.000     05-01-46     1,000,000     1,101,060  
  California County Tobacco Securitization Agency
Fresno County Funding Corp.
    6.000     06-01-35     1,765,000     1,765,424  
  California County Tobacco Securitization Agency
Kern County Tobacco Funding Corp., Series 2014
    5.000     06-01-40     1,500,000     1,609,230  
  California County Tobacco Securitization Agency
Public Improvements
    5.250     06-01-21     3,215,000     3,251,780  
  California County Tobacco Securitization Agency
Stanislaus Funding, Series A
    5.500     06-01-33     345,000     346,677  
  California Educational Facilities Authority
Pepperdine University
    5.000     10-01-49     2,550,000     2,892,873  
  California Educational Facilities Authority
University of Redlands
    5.000     10-01-35     1,000,000     1,101,310  
  California Health Facilities Financing Authority
Cedars Sinai Medical Control, Series B
    4.000     08-15-39     3,000,000     3,028,260  
  California Health Facilities Financing Authority
Lucile Packard Stanford Hospital, Series B
    5.000     08-15-55     1,000,000     1,102,900  
  California Health Facilities Financing Authority
Lucile Salter Packard Children
    5.000     08-15-43     1,000,000     1,098,460  
  California Health Facilities Financing Authority
Scripps Health, Series A
    5.000     11-15-36     1,000,000     1,081,320  
  California Health Facilities Financing Authority
Sutter Health, Series A
    5.000     08-15-43     3,000,000     3,341,100  
  California Municipal Finance Authority
Wineville School Project, Series A (D)
    5.000     10-01-42     2,000,000     2,211,240  
  California Pollution Control Financing Authority
Waste Management Inc., Series A3, AMT
    4.300     07-01-40     4,500,000     4,577,490  
  California Public Finance Authority
Henry Mayo Newhall Hospital
    5.000     10-15-37     500,000     534,665  
  California Public Finance Authority
Henry Mayo Newhall Hospital
    5.000     10-15-47     2,000,000     2,120,680  
  California School Finance Authority
Aspire Public Schools (S)
    5.000     08-01-41     1,700,000     1,767,337  
  California School Finance Authority
Aspire Public Schools (S)
    5.000     08-01-46     1,025,000     1,062,023  
  California State Public Works Board
Department of Corrections, Series A (D)
    5.000     12-01-19     3,260,000     3,461,924  
  California State Public Works Board
Trustees California State University, Series D
    6.250     04-01-34     2,000,000     2,217,680  
  California State Public Works Board
Various Capital Projects, Series A
    5.000     04-01-37     1,000,000     1,109,710  
  California State Public Works Board
Various Correctional Facilities, Series A
    5.000     09-01-39     2,500,000     2,808,875  
  California State University
College and University Revenue, Series A
    5.000     11-01-44     2,000,000     2,260,620  
  California Statewide Communities Development Authority
American Baptist Homes West
    6.250     10-01-39     2,000,000     2,179,660  

2SEE NOTES TO FUND'S INVESTMENTS


California Tax-Free Income Fund

                                         
        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


California Tax-Free Income Fund

                                         
        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


California Tax-Free Income Fund

                                         
        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


California Tax-Free Income Fund

                                         
        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.

       7


More information

     
How to contact us
Internet www.jhinvestments.com  
Mail 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