N-Q 1 d339052.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, 2018  
 

 

ITEM 1. SCHEDULE OF INVESTMENTS




 


John Hancock

California Tax-Free Income Fund

Quarterly portfolio holdings 2/28/18

jhnq_logo.jpg


Fund’s investments  
As of 2-28-18 (unaudited)
  Rate (%) Maturity date   Par value^ Value
Municipal bonds 96.6%         $215,449,031
(Cost $201,373,119)          
California 96.6%         215,449,031
ABAG Finance Authority for Nonprofit Corps.
Sharp HealthCare
6.250 08-01-39   1,000,000 1,067,070
ABAG Finance Authority for Nonprofit Corps.
Sharp HealthCare, Series A
5.000 08-01-43   2,000,000 2,193,217
Anaheim Public Financing Authority
Series A
5.000 05-01-46   1,000,000 1,121,910
Bay Area Toll Authority
San Francisco Bay Area
4.000 04-01-42   2,000,000 2,083,500
California County Tobacco Securitization Agency
Fresno County Funding Corp.
6.000 06-01-35   1,765,000 1,765,900
California County Tobacco Securitization Agency
Kern County Tobacco Funding Corp., Series 2014
5.000 06-01-40   1,500,000 1,608,240
California County Tobacco Securitization Agency
Public Improvements
5.250 06-01-21   3,020,000 3,064,515
California County Tobacco Securitization Agency
Stanislaus Funding, Series A
5.500 06-01-33   250,000 253,685
California Educational Facilities Authority
Pepperdine University
5.000 10-01-49   2,550,000 2,886,116
California Educational Facilities Authority
University of Redlands, Series A
5.000 10-01-35   1,000,000 1,107,900
California Health Facilities Financing Authority
Children's Hospital, Series A
5.000 08-15-47   1,000,000 1,109,620
California Health Facilities Financing Authority
El Camino Hospital
5.000 02-01-42   1,000,000 1,119,040
California Health Facilities Financing Authority
El Camino Hospital
5.000 02-01-47   1,425,000 1,588,832
California Health Facilities Financing Authority
Kaiser Permanente, Series A
5.000 11-01-47   1,000,000 1,268,900
California Health Facilities Financing Authority
Lucile Packard Children's Hospital
5.000 08-15-43   1,000,000 1,100,700
California Health Facilities Financing Authority
Lucile Packard Children's Hospital, Series B
5.000 08-15-55   1,000,000 1,117,450
California Health Facilities Financing Authority
Sutter Health, Series A
5.000 08-15-43   3,000,000 3,372,420
California Municipal Finance Authority
Channing House Project, Series A (A)
4.000 05-15-40   1,500,000 1,547,775
California Municipal Finance Authority
Eisenhower Medical Center, Series A
4.000 07-01-42   1,750,000 1,785,490
California Municipal Finance Authority
Eisenhower Medical Center, Series A
5.000 07-01-47   1,200,000 1,332,084
California Municipal Finance Authority
Wineville School Project, Series A (A)
5.000 10-01-42   2,000,000 2,202,460
California Pollution Control Financing Authority
Calplant I Project, AMT (B)
7.500 07-01-32   1,000,000 973,390
California Pollution Control Financing Authority
Waste Management Inc., Series A3, AMT
4.300 07-01-40   4,675,000 4,877,895
California Public Finance Authority
Henry Mayo Newhall Hospital
5.000 10-15-47   2,000,000 2,159,660
California School Finance Authority
Aspire Public Schools (B)
5.000 08-01-46   1,025,000 1,103,105
California School Finance Authority
Aspire Public Schools (B)
5.000 08-01-41   2,200,000 2,375,010
California State Public Works Board
Various Capital Projects, Series A
5.000 04-01-37   1,000,000 1,101,700
California State Public Works Board
Various Correctional Facilities, Series A
5.000 09-01-39   2,500,000 2,794,725
2 JOHN HANCOCK CALIFORNIA TAX-FREE INCOME FUND |QUARTERLY REPORT SEE NOTES TO FUND'S INVESTMENTS

 

  Rate (%) Maturity date   Par value^ Value
California (continued)          
California State University
College and University Revenue, Series A
5.000 11-01-44   2,000,000 $2,255,340
California Statewide Communities Development Authority
American Baptist Homes West
6.250 10-01-39   2,000,000 2,113,240
California Statewide Communities Development Authority
CHF Irvine LLC
5.000 05-15-40   1,380,000 1,530,572
California Statewide Communities Development Authority
Front Porch Communities and Services, Series A
5.000 04-01-47   1,500,000 1,657,725
California Statewide Communities Development Authority
Infrastructure Program Revenue, Series B
5.000 09-02-44   1,000,000 1,046,250
California Statewide Communities Development Authority
Kaiser Permanente, Series A
5.000 04-01-42   3,500,000 3,827,390
California Statewide Communities Development Authority
Los Angeles Jewish Homes, Series S (A)
5.000 08-01-44   2,625,000 2,937,585
California Statewide Communities Development Authority
Redlands Community Hospital OB
5.000 10-01-46   2,000,000 2,182,360
California Statewide Communities Development Authority
Redwoods Project (A)
5.375 11-15-44   1,500,000 1,714,110
California Statewide Communities Development Authority
Senior Living of Southern California (B)
7.250 11-15-41   1,700,000 1,837,275
California Statewide Communities Development Authority
University of California, Irvine Campus
5.000 05-15-47   1,000,000 1,114,600
California Statewide Financing Authority
Tobacco Settlement, Series A
6.000 05-01-37   2,500,000 2,501,400
California Statewide Financing Authority
Tobacco Settlement, Series B
6.000 05-01-37   3,000,000 3,001,680
City of Atwater Wastewater Revenue
Series A (A)
5.000 05-01-43   1,000,000 1,122,520
City of Belmont
Library Project, Series A (A)
5.750 08-01-24   1,000,000 1,148,090
City of Irvine
Community Facilities District
5.000 09-01-49   2,000,000 2,137,020
City of La Verne
Brethren Hillcrest Homes
5.000 05-15-36   750,000 788,325
City of Long Beach
Alamitos Bay Marina Project, Series 2015
5.000 05-15-45   1,000,000 1,091,390
City of Long Beach
District 6-Pike Project
6.250 10-01-26   2,480,000 2,482,182
City of San Clemente
Community Facilities District
5.000 09-01-46   1,990,000 2,143,170
City of San Francisco Public Utilities Commission
Green Bonds, Series A
5.000 11-01-45   1,500,000 1,675,635
City of San Mateo
Community Facilities District
5.500 09-01-44   2,000,000 2,181,620
County of Orange
Series B
5.750 09-02-33   1,365,000 1,365,000
East Side Union High School District-Santa Clara County
2012 Crossover, GO (A)
5.250 09-01-24   2,500,000 2,986,000
Foothill-Eastern Transportation Corridor Agency
Highway Revenue Tolls, Series A
5.750 01-15-46   5,000,000 5,711,650
Foothill-Eastern Transportation Corridor Agency
Highway Revenue Tolls, Series B-1
3.950 01-15-53   2,000,000 1,956,160
Golden State Tobacco Securitization Corp.
Series A
5.000 06-01-40   8,250,000 9,237,360
Inland Valley Development Agency
Series A
5.000 09-01-44   7,500,000 8,163,075
Lancaster School District
School Improvements (A)
1.525(C) 04-01-19   1,730,000 1,701,369
Lancaster School District
School Improvements (A)
1.987(C) 04-01-22   1,380,000 1,271,849
SEE NOTES TO FUND'S INVESTMENTS QUARTERLY REPORT |JOHN HANCOCK CALIFORNIA TAX-FREE INCOME FUND 3

 

  Rate (%) Maturity date   Par value^ Value
California (continued)          
Los Angeles Community Facilities District No: 3
Cascades Business Park
6.400 09-01-22   375,000 $377,216
Los Angeles County Public Works Financing Authority
Series D
5.000 12-01-45   3,000,000 3,363,420
Los Angeles County Regional Financing Authority
Montecedro Incorporated Project, Series A (A)
5.000 11-15-44   1,355,000 1,501,828
Los Angeles Department of Water & Power
Power Systems, Series D
5.000 07-01-44   1,000,000 1,122,460
Marin Healthcare District
Election of 2013, GO
4.000 08-01-45   1,000,000 1,030,400
Morgan Hill Redevelopment Agency Successor Agency
Series A
5.000 09-01-33   1,750,000 1,961,943
M-S-R Energy Authority
Natural Gas Revenue, Series B
6.500 11-01-39   1,500,000 2,083,155
Norman Y Mineta San Jose International Airport SJC
Series A, AMT
5.000 03-01-47   3,000,000 3,352,110
Northern California Transmission Agency
California-Oregon Transmission Project
5.000 05-01-36   2,500,000 2,845,975
Oakland Unified School District/Alameda County
Election of 2012, GO
6.625 08-01-38   1,000,000 1,161,210
Oakland Unified School District/Alameda County
Series A, GO
5.000 08-01-40   1,500,000 1,683,225
Orange County Community Facilities District
Esencia Village, Series A
5.000 08-15-47   2,000,000 2,207,220
Pacifica School District
Series C, GO (A)
3.076(C) 08-01-26   1,000,000 771,950
Port of Los Angeles
Series A, AMT
5.000 08-01-44   2,000,000 2,209,640
River Islands Public Financing Authority
Community Facilities District, Series 2003-1
5.500 09-01-45   2,000,000 2,134,460
Riverside County Transportation Commission
Senior Lien, Series A
5.750 06-01-48   1,000,000 1,109,980
San Bruno Park Elementary School District
School Improvements, Series B, GO (A)
1.976(C) 08-01-21   1,015,000 948,335
San Diego County Regional Airport Authority
Consol Rental Car Facilities, Series A
5.000 07-01-44   4,925,000 5,482,904
San Diego Public Facilities Financing Authority
Series A
5.000 10-15-44   1,000,000 1,120,820
San Diego Unified School District
Series I, GO
4.074(C) 07-01-39   1,250,000 526,625
San Diego Unified School District, Election of 1998
Series A, GO (A)
1.987(C) 07-01-21   2,500,000 2,338,900
San Francisco City & County Airports Commission
San Francisco International Airport, Series B
5.000 05-01-44   3,390,000 3,770,833
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 1,251,288
San Francisco City & County Redevelopment Agency
Mission Bay Project, Series A
5.000 08-01-43   1,000,000 1,112,180
San Francisco City & County Redevelopment Agency
Mission Bay South Redevelopment, Series D
6.625 08-01-39   1,000,000 1,070,830
San Francisco City & County Redevelopment Agency
Mission Bay South Redevelopment, Series D
7.000 08-01-41   1,000,000 1,151,270
San Francisco City & County Redevelopment Agency
San Francisco Redevelopment Projects, Series B
6.625 08-01-39   700,000 750,092
San Joaquin Hills Transportation Corridor Agency
Highway Revenue Tolls, Escrowed to Maturity
1.926(C) 01-01-22   6,500,000 6,034,340
San Joaquin Hills Transportation Corridor Agency
Highway Revenue Tolls, Series A
5.000 01-15-44   2,500,000 2,719,150
San Mateo Foster City School District
Election 2015, Series A, GO
4.000 08-01-45   1,875,000 1,941,919
4 JOHN HANCOCK CALIFORNIA TAX-FREE INCOME FUND |QUARTERLY REPORT SEE NOTES TO FUND'S INVESTMENTS

 

  Rate (%) Maturity date   Par value^ Value
California (continued)          
San Mateo Joint Powers Financing Authority
Capital Projects Program (A)
5.000 07-01-21   1,815,000 $1,976,354
Santa Ana Financing Authority
Police Administration & Holding Facility (A)
6.250 07-01-24   5,000,000 5,884,600
Santa Ana Financing Authority
Prerefunded, Police Administration & Holding Facility (A)
6.250 07-01-24   5,000,000 5,856,700
Santa Fe Springs Community Development Commission
Construction Redevelopment Project, Series A (A)
1.913(C) 09-01-20   1,275,000 1,214,986
Santa Margarita Water District
Community Facilities District
5.625 09-01-43   775,000 844,975
South Orange County Public Financing Authority
Series A
5.000 08-15-33   1,000,000 1,084,200
South Orange County Public Financing Authority
Series A
5.000 08-15-34   450,000 487,269
Southern California Public Power Authority
Natural Gas Revenue, Series A
5.250 11-01-26   2,000,000 2,329,400
Southern California Public Power Authority
Series A
5.000 07-01-38   1,000,000 1,131,120
State of California, GO
Various Purpose
5.000 04-01-43   3,500,000 3,881,465
Stockton Public Financing Authority
Delta Water Supply Project, Series A
6.250 10-01-40   1,150,000 1,358,185
Sweetwater Union High School District
Election of 2006, Series 2016 B, GO
4.000 08-01-42   500,000 513,655
West Covina Redevelopment Agency
Fashion Plaza
6.000 09-01-22   3,390,000 3,697,473
William S Hart Union High School District
Community Facilities District
5.000 09-01-47   1,000,000 1,088,720
    
  Yield* (%) Maturity date   Par value^ Value
Short-term investments 2.4%         $5,258,000
(Cost $5,258,000)          
U.S. Government Agency 1.0%         2,287,000
Federal Agricultural Mortgage Corp. Discount Note 1.150 03-01-18   347,000 347,000
Federal Home Loan Bank Discount Note 0.900 03-01-18   229,000 229,000
Federal Home Loan Bank Discount Note 1.000 03-01-18   588,000 588,000
Federal Home Loan Bank Discount Note 1.120 03-01-18   1,123,000 1,123,000
    
        Par value^ Value
Repurchase agreement 1.4%         2,971,000
Barclays Tri-Party Repurchase Agreement dated 2-28-18 at 1.350% to be repurchased at $2,371,089 on 3-1-18, collateralized by $2,269,600 U.S. Treasury Notes, 1.375% due 6-30-23 (valued at $2,124,680, including interest) and $285,000 U.S. Treasury Inflation Indexed Notes, 0.125% due 4-15-21 (valued at $293,832, including interest)       2,371,000 2,371,000
Repurchase Agreement with State Street Corp. dated 2-28-18 at 0.540% to be repurchased at $600,009 on 3-1-18, collateralized by $590,000 U.S. Treasury Notes, 9.125% due 5-15-18 (valued at $614,525, including interest)       600,000 600,000
Total investments (Cost $206,631,119) 99.0%     $220,707,031
Other assets and liabilities, net 1.0%         2,263,360
Total net assets 100.0%         $222,970,391
    
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
(A) Bond is insured by one or more of the companies listed in the insurance coverage table below.
SEE NOTES TO FUND'S INVESTMENTS QUARTERLY REPORT |JOHN HANCOCK CALIFORNIA TAX-FREE INCOME FUND 5

 

(B) 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.
(C) 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.
    
Insurance coverage As a % of total
investments
National Public Finance Guarantee Corp. 8.6
California Mortgage Insurance 3.5
Assured Guaranty Municipal Corp. 3.2
Build America Mutual Assurance Company 1.0
Ambac Financial Group, Inc. 0.5
TOTAL 16.8
The fund had the following sector composition as a percentage of net assets on 2-28-18:
General obligation bonds 7.8%
Revenue bonds 88.8%
Health care 17.7%
Facilities 14.7%
Other revenue 13.5%
Transportation 10.3%
Tobacco 9.5%
Development 6.3%
Airport 5.7%
Education 5.4%
Utilities 3.0%
Water and sewer 1.5%
Housing 1.2%
Short-term investments and other 3.4%
TOTAL 100.0%
6 JOHN HANCOCK CALIFORNIA TAX-FREE INCOME FUND |QUARTERLY REPORT SEE 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 regurly 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, 2018, all investments are categorized as Level 2 under the hierarchy described above.

Repurchase agreements. The fund may enter into repurchase agreements. When the fund enters into a repurchase agreement, it receives collateral that 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. Collateral received by the fund for repurchase agreements is disclosed in the Fund's investments as part of the caption related to the repurchase agreement.

Repurchase agreements are typically governed by the terms and conditions of the Master Repurchase Agreement and/or Global Master Repurchase Agreement (collectively, MRA). Upon an event of default, the non-defaulting party may close out all transactions traded under the MRA and net amounts owed. Absent an event of default, assets and liabilities resulting from repurchase agreements are not offset. 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 or the counterparty may have insufficient assets to pay back claims resulting from close-out of the transactions.

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 02/18
This report is for the information of the shareholders of John Hancock California Tax-Free Income Fund.   4/18


 

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 20, 2018  

 

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 20, 2018  
     
By: /s/ Charles A. Rizzo  
     
  Charles A. Rizzo  
  Chief Financial Officer  
     
Date: April 20, 2018