Putnam
California Tax Exempt
Income Fund

Semiannual report
3 | 31 | 22

 

Message from the Trustees

May 11, 2022

Dear Fellow Shareholder:

Financial markets have been bumpy in recent months. Investors are weighing the risks of higher inflation, interest-rate increases by the Federal Reserve, and the global impact of Russia’s attack on Ukraine. Regional surges in Covid-19 infections are also complicating global trade.

In times like these, it’s worth remembering the benefits of staying focused on your long-term financial goals. At Putnam, professional, active investors are working for you. They are monitoring risks while looking for strong potential investments for your fund. Learn more in the interview with your fund manager(s) in the following pages.

Thank you for investing with Putnam.

There’s an old adage in investing: “It’s not how much you make that matters, it’s how much you keep.” That’s particularly true when it comes to the fixed-income markets and the impact that taxes can have on your investment. The good news is that, unlike Treasuries or corporate bonds, the interest paid on municipal bonds is generally free from federal income taxes. Moreover, California residents generally pay no state income taxes on the distributions paid by municipal bonds issued in the Golden State. That can make municipal bonds particularly attractive to investors subject to higher personal income tax rates.

Putnam California Tax Exempt Income Fund offers an active, research-intensive investment approach.

 

Sources: Bloomberg Index Services Limited, Putnam, as of 3/31/22. Past performance is no guarantee of future results. Yields for U.S. Treasuries, investment-grade corporates, and municipal bonds are represented by the average “yield to worst” — a calculation of the lowest possible yield generated without defaulting — of the Bloomberg U.S. Treasury Index, an unmanaged index of U.S. dollar-denominated, fixed-rate, nominal debt issued by the U.S. Treasury; the Bloomberg U.S. Corporate Bond Index, an unmanaged index of U.S. dollar-denominated, investment-grade, fixed-rate, taxable corporate bonds; and the Bloomberg Municipal Bond Index, an unmanaged index of long-term, fixed-rate, investment-grade tax-exempt bonds, respectively. You cannot invest directly in an index. Bond investments are subject to interest-rate risk (the risk of bond prices falling if interest rates rise) and credit risk (the risk of an issuer defaulting on interest or principal payments). Interest-rate risk is greater for longer-term bonds, and credit risk is greater for below-investment-grade bonds. Income from municipal bonds may be subject to the alternative minimum tax. Annual after-tax income is based on a 40.80% federal income tax rate. This rate reflects the Tax Cuts and Jobs Act of 2017 and includes the 3.80% Medicare surtax. The income data is based on a hypothetical $100,000 investment.

Source: Moody’s Investors Service, Annual U.S. Municipal Bond Defaults and Recoveries, Five-Year Average Cumulative Default Rates, 1970–2020 (July 2021). Most recent data available.

 

Current performance may be lower or higher than the quoted past performance, which cannot guarantee future results. Share price, principal value, and return will fluctuate, and you may have a gain or a loss when you sell your shares. Performance of class A shares assumes reinvestment of distributions and does not account for taxes. Fund returns in the bar chart do not reflect a sales charge of 4.00%; had they, returns would have been lower. See below and pages 9–10 for additional performance information. For a portion of the periods, the fund had expense limitations, without which returns would have been lower. To obtain the most recent month-end performance, visit putnam.com.

Returns for periods of less than one year are not annualized.

All Bloomberg indices are provided by Bloomberg Index Services Limited.

Lipper peer group average is provided by Lipper, a Refinitiv company.

This comparison shows your fund’s performance in the context of broad market indexes for the six months ended 3/31/22. See above and pages 9–10 for additional fund performance information. Index descriptions can be found on pages 14–15.

All Bloomberg indices are provided by Bloomberg Index Services Limited.

 

Paul, how did municipal bonds perform during the six-month period ended March 31, 2022?

Municipal bonds encountered headwinds due to fears that persistently high inflation might prompt the Federal Reserve to pare back pro-growth monetary policies faster than expected. Inflation concerns were stoked by supply chain disruptions, rising labor costs, and higher commodity prices. Geopolitical and economic uncertainties surrounding Russia’s invasion of Ukraine in late February also unnerved investors.

The Fed faces the difficult task of tempering inflation without slowing economic growth or causing unemployment to rise. In January 2022, the Fed indicated it was on track to start a series of rate hikes in March 2022 and end its bond-buying stimulus program. The war in Ukraine and ensuing sanctions on Russia elevated commodity prices. This further complicated the Fed’s balancing act and shifted expectations higher for the number and degree of interest-rate hikes. At their March meeting just before period-end, Fed policymakers raised their benchmark rate by a quarter percentage point and signaled their intent to take further

 

Allocations are shown as a percentage of the fund’s net assets as of 3/31/22. Cash and net other assets, if any, represent the market value weights of cash, derivatives, short-term securities, and other unclassified assets in the portfolio. Summary information may differ from the information in the portfolio schedule notes included in the financial statements due to the inclusion of derivative securities, any interest accruals, the timing of matured security transactions, the use of different classifications of securities for presentation purposes, and rounding. Holdings and allocations may vary over time.

Credit qualities are shown as a percentage of the fund’s net assets as of 3/31/22. A bond rated BBB or higher (SP-3 or higher, for short-term debt) is considered investment grade. This chart reflects the highest security rating provided by one or more of Standard & Poor’s, Moody’s, and Fitch. Ratings may vary over time.

Cash and net other assets, if any, represent the market value weights of cash, derivatives, and short-term securities in the portfolio. The fund itself has not been rated by an independent rating agency.

 

measures to curb the highest inflation in 40 years. The markets subsequently began pricing in a higher probability that the Fed would raise interest rates by a half percentage point at one or more of its 2022 meetings.

These factors led to significant outflows from municipal bond funds, resulting in increasingly difficult market technicals. For the six months ended March 31, 2022, the Bloomberg Municipal Bond Index [the fund’s benchmark] returned –5.55%. Short-term municipal bonds outperformed their intermediate- and long-term cohorts. From a credit perspective, investment-grade municipal bonds held up better than higher-yielding, lower-rated municipal bonds.

How did the fund perform during the reporting period?

For the six months ended March 31, 2022, the fund underperformed its benchmark and the average return of its Lipper peer group, California Municipal Debt Funds.

What strategies or holdings influenced the fund’s performance during the period?

At period-end, the fund held an overweight exposure to bonds rated A and BBB relative to the benchmark. From a sector- or industry-positioning perspective, we favored continuing-care retirement community, charter school, and essential-service housing bonds relative to the fund’s Lipper peer group. Duration positioning, a measure of the fund’s interest-rate sensitivity, was generally neutral relative to the level of its Lipper peer group at period-end.

We remain cautious about investing in bonds issued by Puerto Rico due to what we believe are its seemingly fragile economy, weak demographic trends, poor-quality infrastructure, volatile political environment, and history of fiscal mismanagement. As such, the fund remained underweight in its exposure to uninsured Puerto Rico municipal debt relative to its Lipper peer group. We continue to monitor Puerto Rico’s ongoing restructuring efforts for potential opportunities.

How did you use derivatives during the period?

We utilized swaps to hedge or gain exposure to interest-rate and term structure risk and to hedge or gain exposure to inflation. Additionally, we used futures for hedging treasury term structure risk and yield curve positioning.

What is your current assessment of the health of the municipal bond market?

Municipal bonds had a difficult start to 2022 as positive seasonal factors waned, fund flows turned negative, and the market adjusted to a quicker pace of policy normalization. However, municipal credit fundamentals remain strong, in our view. Unprecedented fiscal support, tax revenue outperformance, and strong economic growth expectations put most state and local governments in their best fiscal shape for more than a decade. State and local tax collections also were up 13.6% in 2021 compared with 2020. Finally, municipal defaults are in line with long-term averages and remain isolated to the lowest-rated cohorts. As such, we believe the credit outlook is currently the most favorable factor supporting the asset class.

What is your outlook?

Higher-than-expected inflation and strong labor reports during the early months of 2022 have seemingly cemented the Fed’s pivot to a more hawkish stance. The market has quickly repriced to reflect a faster pace of policy normalization. In our view, the Fed is likely to continue the path of policy normalization.

 

This process could contribute to heightened market volatility but also present investors with attractive opportunities.

We expect pandemic-related supply chain pressures will begin to ease and U.S. economic activity will slow in the second half of 2022. We think the combination could contribute to slower growth and lower inflation, which could lead to a slower pace of policy normalization than is currently priced in.

In our view, the technical environment is likely to remain challenged, as investors respond to tightening monetary policy. The volatility-induced outflow cycle is no longer a potential risk but a current reality. Municipal bond funds saw $23 billion in outflows during the first quarter of 2022. However, valuations at this level are more attractive, and future returns look more promising for longer-term investors, in our opinion.

Thank you, Paul, for your time and insights today.

The views expressed in this report are exclusively those of Putnam Management and are subject to change. They are not meant as investment advice.

Please note that the holdings discussed in this report may not have been held by the fund for the entire period. Portfolio composition is subject to review in accordance with the fund’s investment strategy and may vary in the future. Current and future portfolio holdings are subject to risk. Statements in the Q&A concerning the fund’s performance or portfolio composition relative to those of the fund’s Lipper peer group may reference information produced by Lipper Inc. or through a third party.

This chart shows how the fund’s top weightings have changed over the past six months. Allocations are shown as a percentage of the fund’s net assets. Current period summary information may differ from the information in the portfolio schedule notes included in the financial statements due to the inclusion of derivative securities, any interest accruals, the timing of matured security transactions, the use of different classifications of securities for presentation purposes, and rounding. Holdings and allocations may vary over time.

 

Your fund’s performance

This section shows your fund’s performance, price, and distribution information for periods ended March 31, 2022, the end of the first half of its current fiscal year. In accordance with regulatory requirements for mutual funds, we also include expense information taken from the fund’s current prospectus. Performance should always be considered in light of a fund’s investment strategy. Data represent past performance. Past performance does not guarantee future results. More recent returns may be less or more than those shown. Investment return and principal value will fluctuate, and you may have a gain or a loss when you sell your shares. Performance information does not reflect any deduction for taxes a shareholder may owe on fund distributions or on the redemption of fund shares. For the most recent month-end performance, please visit the Individual Investors section at putnam.com or call Putnam at 1-800-225-1581. Class R6 and Y shares are not available to all investors. See the Terms and definitions section in this report for definitions of the share classes offered by your fund.

Annualized fund performance Total return for periods ended 3/31/22

 

Current performance may be lower or higher than the quoted past performance, which cannot guarantee future results. After-sales-charge returns for class A shares reflect the deduction of the maximum 4.00% sales charge levied at the time of purchase. Class B share returns after contingent deferred sales charge (CDSC) reflect the applicable CDSC, which is 5% in the first year, declining over time to 1% in the sixth year, and is eliminated thereafter. Class C share returns after CDSC reflect a 1% CDSC for the first year that is eliminated thereafter. Class R6 and Y shares have no initial sales charge or CDSC. Performance for class B, C, and Y shares before their inception is derived from the historical performance of class A shares, adjusted for the applicable sales charge (or CDSC) and the higher operating expenses for such shares, except for class Y shares, for which 12b-1 fees are not applicable. Performance for class R6 shares prior to their inception is derived from the historical performance of class Y shares and has not been adjusted for the lower investor servicing fees applicable to class R6 shares; had it, returns would have been higher.

Returns for periods of less than one year are not annualized.

For a portion of the periods, the fund had expense limitations, without which returns would have been lower.

Class B and C share performance reflects conversion to class A shares after eight years.

 

Comparative annualized index returns For periods ended 3/31/22

 

Index and Lipper results should be compared with fund performance before sales charge, before CDSC, or at net asset value.

Returns for periods of less than one year are not annualized.

All Bloomberg indices are provided by Bloomberg Index Services Limited.

Lipper peer group average is provided by Lipper, a Refinitiv company.

^* Over the 6-month, 1-year, 3-year, 5-year, 10-year, and life-of-fund periods ended 3/31/22, there were 122, 122, 115, 102, 78, and 3 funds, respectively, in this Lipper category.

Fund price and distribution information For the six-month period ended 3/31/22

 

The classification of distributions, if any, is an estimate. Before-sales-charge share value and current dividend rate for class A shares, if applicable, do not take into account any sales charge levied at the time of purchase. After-sales-charge share value, current dividend rate, and current 30-day SEC yield, if applicable, are calculated assuming that the maximum sales charge (4.00% for class A shares) was levied at the time of purchase. Final distribution information will appear on your year-end tax forms.

¹ For some investors, investment income may be subject to the federal alternative minimum tax.

² Capital gains, if any, are taxable for federal and, in most cases, state purposes.

³ Most recent distribution, including any return of capital and excluding capital gains, annualized and divided by share price before or after sales charge at period-end.

⁴ Assumes maximum 54.10% federal and state combined tax rate for 2022. Results for investors subject to lower tax rates would not be as advantageous.

⁵ Based only on investment income and calculated using the maximum offering price for each share class, in accordance with SEC guidelines.

 

Your fund’s expenses

As a mutual fund investor, you pay ongoing expenses, such as management fees, distribution fees (12b-1 fees), and other expenses. In the most recent six-month period, your fund’s expenses were limited; had expenses not been limited, they would have been higher. Using the following information, you can estimate how these expenses affect your investment and compare them with the expenses of other funds. You may also pay one-time transaction expenses, including sales charges (loads) and redemption fees, which are not shown in this section and would have resulted in higher total expenses. For more information, see your fund’s prospectus or talk to your financial representative.

Expense ratios

 

Fiscal year expense information in this table is taken from the most recent prospectus, is subject to change, and may differ from that shown for the annualized expense ratio and in the financial highlights of this report.

Expenses are shown as a percentage of average net assets.

^* Expense ratios for each class are for the fund’s most recent fiscal half year. As a result of this, ratios may differ from expense ratios based on one-year data in the financial highlights.

Expenses per $1,000

The following table shows the expenses you would have paid on a $1,000 investment in each class of the fund from 10/1/21 to 3/31/22. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.

 

^* Expenses for each share class are calculated using the fund’s annualized expense ratio for each class, which represents the ongoing expenses as a percentage of average net assets for the six months ended 3/31/22. The expense ratio may differ for each share class.

^† Expenses are calculated by multiplying the expense ratio by the average account value for the period; then multiplying the result by the number of days in the period (182); and then dividing that result by the number of days in the year (365).

 

Estimate the expenses you paid

To estimate the ongoing expenses you paid for the six months ended 3/31/22, use the following calculation method. To find the value of your investment on 10/1/21, call Putnam at 1-800-225-1581.

Compare expenses using the SEC’s method

The Securities and Exchange Commission (SEC) has established guidelines to help investors assess fund expenses. Per these guidelines, the following table shows your fund’s expenses based on a $1,000 investment, assuming a hypothetical 5% annualized return. You can use this information to compare the ongoing expenses (but not transaction expenses or total costs) of investing in the fund with those of other funds. All mutual fund shareholder reports will provide this information to help you make this comparison. Please note that you cannot use this information to estimate your actual ending account balance and expenses paid during the period.

 

^* Expenses for each share class are calculated using the fund’s annualized expense ratio for each class, which represents the ongoing expenses as a percentage of average net assets for the six months ended 3/31/22. The expense ratio may differ for each share class.

^† Expenses are calculated by multiplying the expense ratio by the average account value for the six-month period; then multiplying the result by the number of days in the six-month period (182); and then dividing that result by the number of days in the year (365).

 

Consider these risks before investing

The value of investments in the fund’s portfolio may fall or fail to rise over extended periods of time for a variety of reasons, including general economic, political, or financial market conditions; investor sentiment and market perceptions; government actions; geopolitical events or changes; and factors related to a specific issuer, geography, industry, or sector. These and other factors may lead to increased volatility and reduced liquidity in the fund’s portfolio holdings.

The fund’s performance will be closely tied to the economic and political conditions in California, and can be more volatile than the performance of a more geographically diversified fund. To the extent investments in securities of issuers located outside of California are made, the fund may also be exposed to the risks affecting other states. Certain provisions of the California Constitution and state statutes limit the taxing and spending authority of California’s government entities, which could impair the ability of California issuers to pay principal and/or interest on their obligations.

Capital gains, if any, are taxed at the federal and, in most cases, state levels. For some investors, investment income may be subject to the federal alternative minimum tax. Bond investments are subject to interest-rate risk (the risk of bond prices falling if interest rates rise) and credit risk (the risk of an issuer defaulting on interest or principal payments). Bond investments may be more susceptible to downgrades or defaults during economic downturns or other periods of economic stress. Interest-rate risk is generally greater for longer-term bonds, and credit risk is generally greater for below-investment-grade bonds. Unlike bonds, funds that invest in bonds have fees and expenses. Tax-exempt bonds may be issued under the Internal Revenue Code only by limited types of issuers for limited types of projects. As a result, the fund’s investments may be focused in certain market segments and be more vulnerable to fluctuations in the values of the securities it holds than a more broadly invested fund. Interest the fund receives might be taxable.

Our investment techniques, analyses, and judgments may not produce the outcome we intend. The investments we select for the fund may not perform as well as other securities that we do not select for the fund. We, or the fund’s other service providers, may experience disruptions or operating errors that could have a negative effect on the fund. You can lose money by investing in the fund.

 

Terms and definitions

Important terms

Total return shows how the value of the fund’s shares changed over time, assuming you held the shares through the entire period and reinvested all distributions in the fund.

Before sales charge, or net asset value, is the price, or value, of one share of a mutual fund, without a sales charge. Before-sales-charge figures fluctuate with market conditions. They are calculated by dividing the net assets of each class of shares by the number of outstanding shares in the class.

After sales charge is the price of a mutual fund share plus the maximum sales charge levied at the time of purchase. After-sales-charge performance figures shown here assume the 4.00% maximum sales charge for class A shares.

Contingent deferred sales charge (CDSC) is generally a charge applied at the time of the redemption of class B or C shares and assumes redemption at the end of the period. Your fund’s class B CDSC declines over time from a 5% maximum during the first year to 1% during the sixth year. After the sixth year, the CDSC no longer applies. The CDSC for class C shares is 1% for one year after purchase.

Share classes

Class A shares are generally subject to an initial sales charge and no CDSC (except on certain redemptions of shares bought without an initial sales charge).

Class B shares are closed to new investments and are only available by exchange from class B shares of another Putnam fund or through dividend and/or capital gains reinvestment. They are not subject to an initial sales charge and may be subject to a CDSC.

Class C shares are not subject to an initial sales charge and are subject to a CDSC only if the shares are redeemed during the first year.

Class R6 shares are not subject to an initial sales charge or CDSC and carry no 12b-1 fee. They are generally only available to employer-sponsored retirement plans, corporate and institutional clients, and clients in other approved programs.

Class Y shares are not subject to an initial sales charge or CDSC and carry no 12b-1 fee. They are generally only available to corporate and institutional clients and clients in other approved programs.

Fixed-income terms

Current rate is the annual rate of return earned from dividends or interest of an investment. Current rate is expressed as a percentage of the price of a security, fund share, or principal investment.

Yield curve is a graph that plots the yields of bonds with equal credit quality against their differing maturity dates, ranging from shortest to longest. It is used as a benchmark for other debt, such as mortgage or bank lending rates.

Comparative indexes

Bloomberg Municipal Bond Index is an unmanaged index of long-term, fixed-rate, investment-grade tax-exempt bonds.

Bloomberg U.S. Aggregate Bond Index is an unmanaged index of U.S. investment-grade fixed-income securities.

ICE BofA (Intercontinental Exchange Bank of America) U.S. 3-Month Treasury Bill Index is an unmanaged index that seeks to measure the performance of U.S. Treasury bills available in the marketplace.

S&P 500^® Index is an unmanaged index of common stock performance.

Indexes assume reinvestment of all distributions and do not account for fees. Securities and performance of a fund and an index will differ. You cannot invest directly in an index.

 

BLOOMBERG^® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). Bloomberg or Bloomberg’s licensors own all proprietary rights in the Bloomberg Indices. Neither Bloomberg nor Bloomberg’s licensors approve or endorse this material, or guarantee the accuracy or completeness of any information herein, or make any warranty, express or implied, as to the results to be obtained therefrom, and to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith.

ICE Data Indices, LLC (“ICE BofA”), used with permission. ICE BofA permits use of the ICE BofA indices and related data on an “as is” basis; makes no warranties regarding same; does not guarantee the suitability, quality, accuracy, timeliness, and/or completeness of the ICE BofA indices or any data included in, related to, or derived therefrom; assumes no liability in connection with the use of the foregoing; and does not sponsor, endorse, or recommend Putnam Investments, or any of its products or services.

Lipper, a Refinitiv company, is a third-party industry-ranking entity that ranks mutual funds. Its rankings do not reflect sales charges. Lipper rankings are based on total return at net asset value relative to other funds that have similar current investment styles or objectives as determined by Lipper. Lipper may change a fund’s category assignment at its discretion. Lipper category averages reflect performance trends for funds within a category.

 

Other information for shareholders

Important notice regarding delivery of shareholder documents

In accordance with Securities and Exchange Commission (SEC) regulations, Putnam sends a single notice of internet availability, or a single printed copy, of annual and semiannual shareholder reports, prospectuses, and proxy statements to Putnam shareholders who share the same address, unless a shareholder requests otherwise. If you prefer to receive your own copy of these documents, please call Putnam at 1-800-225-1581, and Putnam will begin sending individual copies within 30 days.

Proxy voting

Putnam is committed to managing our mutual funds in the best interests of our shareholders. The Putnam funds’ proxy voting guidelines and procedures, as well as information regarding how your fund voted proxies relating to portfolio securities during the 12-month period ended June 30, 2021, are available in the Individual Investors section of putnam.com and on the SEC’s website, www.sec.gov. If you have questions about finding forms on the SEC’s website, you may call the SEC at 1-800-SEC-0330. You may also obtain the Putnam funds’ proxy voting guidelines and procedures at no charge by calling Putnam’s Shareholder Services at 1-800-225-1581.

Fund portfolio holdings

The fund will file a complete schedule of its portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT within 60 days of the end of such fiscal quarter. Shareholders may obtain the fund’s Form N-PORT on the SEC’s website at www.sec.gov.

Prior to its use of Form N-PORT, the fund filed its complete schedule of its portfolio holdings with the SEC on Form N-Q, which is available online at www.sec.gov.

Trustee and employee fund ownership

Putnam employees and members of the Board of Trustees place their faith, confidence, and, most importantly, investment dollars in Putnam mutual funds. As of March 31, 2022, Putnam employees had approximately $530,000,000 and the Trustees had approximately $77,000,000 invested in Putnam mutual funds. These amounts include investments by the Trustees’ and employees’ immediate family members as well as investments through retirement and deferred compensation plans.

 

Financial statements

These sections of the report, as well as the accompanying Notes, constitute the fund’s financial statements.

The fund’s portfolio lists all the fund’s investments and their values as of the last day of the reporting period. Holdings are organized by asset type and industry sector, country, or state to show areas of concentration and diversification.

Statement of assets and liabilities shows how the fund’s net assets and share price are determined. All investment and non-investment assets are added together. Any unpaid expenses and other liabilities are subtracted from this total. The result is divided by the number of shares to determine the net asset value per share, which is calculated separately for each class of shares. (For funds with preferred shares, the amount subtracted from total assets includes the liquidation preference of preferred shares.)

Statement of operations shows the fund’s net investment gain or loss. This is done by first adding up all the fund’s earnings — from dividends and interest income — and subtracting its operating expenses to determine net investment income (or loss). Then, any net gain or loss the fund realized on the sales of its holdings — as well as any unrealized gains or losses over the period — is added to or subtracted from the net investment result to determine the fund’s net gain or loss for the fiscal period.

Statement of changes in net assets shows how the fund’s net assets were affected by the fund’s net investment gain or loss, by distributions to shareholders, and by changes in the number of the fund’s shares. It lists distributions and their sources (net investment income or realized capital gains) over the current reporting period and the most recent fiscal year-end. The distributions listed here may not match the sources listed in the Statement of operations because the distributions are determined on a tax basis and may be paid in a different period from the one in which they were earned. Dividend sources are estimated at the time of declaration. Actual results may vary. Any non-taxable return of capital cannot be determined until final tax calculations are completed after the end of the fund’s fiscal period.

Financial highlights provide an overview of the fund’s investment results, per-share distributions, expense ratios, net investment income ratios, and portfolio turnover in one summary table, reflecting the five most recent reporting periods. In a semiannual report, the highlights table also includes the current reporting period.

 

The fund’s portfolio 3/31/22 (Unaudited)

Key to holding’s abbreviations

 

MUNICIPAL BONDS AND NOTES (100.4%)*	Rating**		Principal amount	Value
Alaska (1.1%)
AK State Indl. Dev. & Export Auth. Rev. Bonds, (Tanana Chiefs Conference), Ser. A
5.00%, 10/1/33	A+/F		$1,500,000	$1,715,343
4.00%, 10/1/38	A+/F		4,270,000	4,559,429
4.00%, 10/1/36	A+/F		2,455,000	2,626,486
4.00%, 10/1/34	A+/F		2,110,000	2,261,610
				11,162,868
California (98.3%)
ABAG Fin. Auth. for Nonprofit Corps. Rev. Bonds, (Episcopal Sr. Cmntys.), Ser. A, 5.00%, 7/1/42 (Prerefunded 7/1/22)	AAA/P		700,000	706,641
ABAG Fin. Auth. for Nonprofit Corps. Special Tax Bonds, (Windemere Ranch Infrastructure Fin. Program), Ser. A, AGM
5.00%, 9/2/34	AA		415,000	468,621
5.00%, 9/2/33	AA		740,000	836,414
5.00%, 9/2/32	AA		350,000	395,981
ABAG Fin. Auth. Non-Profit Corps Insd. Sr. Living Rev. Bonds, (Odd Fellows Home of CA), Ser. A
5.00%, 4/1/42	AA−		1,000,000	1,034,403
5.00%, 4/1/32	AA−		3,000,000	3,101,090
Alameda, Corridor Trans. Auth. Rev. Bonds, Ser. B, AGM, 5.00%, 10/1/37	AA		450,000	499,992
Albany, Unified School Dist. G.O. Bonds, (Election 2016), Ser. B
5.00%, 8/1/43	Aa2		2,000,000	2,204,629
4.00%, 8/1/46	Aa2		1,750,000	1,838,632
Anaheim, Hsg. & Pub. Impt. Auth. Rev. Bonds
Ser. A, 5.00%, 10/1/50	AA−		1,400,000	1,521,947
Ser. C, 5.00%, 10/1/45	AA−		2,730,000	2,967,796
Anaheim, Pub. Fin. Auth. Rev. Bonds, Ser. C, AGM, zero %, 9/1/31	AA		5,000,000	3,785,586
Bay Area Toll Auth. Rev. Bonds, 0.96%, 4/1/56	AA		3,500,000	3,516,863

MUNICIPAL BONDS AND NOTES (100.4%)* cont.	Rating**		Principal amount	Value
California cont.
Bay Area Toll Auth. VRDN (San Francisco Bay Area), Ser. C, 0.42%, 4/1/53	VMIG 1		$15,710,000	$15,710,000
Bay Area Wtr. Supply & Conservation Agcy. Rev. Bonds
5.00%, 10/1/34 ###	Aa3		2,000,000	2,339,723
5.00%, 10/1/32 ###	Aa3		2,000,000	2,336,404
5.00%, 10/1/30 ###	Aa3		1,500,000	1,716,145
CA Cmnty. Choice Fin. Auth. Mandatory Put Bonds (12/1/27), (Clean Energy), Ser. A, 4.00%, 10/1/52	A2		11,600,000	12,268,806
CA Cmnty. Hsg. Agcy. Essential Hsg. 144A Rev. Bonds
(The Arbors), Ser. A, 5.00%, 8/1/50	BB−/P		4,500,000	4,536,275
(Aster Apt.), Ser. A-1, 4.00%, 2/1/56	BB+/P		1,100,000	1,037,661
(Glendale Properties), Ser. A-1, 4.00%, 2/1/56	BB/P		2,500,000	2,358,320
(Fountains at Emerald Park), 3.00%, 8/1/56	BBB/P		7,775,000	5,969,846
CA Hlth. Fac. Fin. Auth. Rev. Bonds, (Adventist Hlth. Syst./West), Ser. A, 4.00%, 3/1/33	A		4,265,000	4,345,749
CA Hsg. Fin. Agcy. Rev. Bonds, Ser. 2, Class A, 4.00%, 3/20/33	BBB+		4,824,644	5,113,640
CA Hsg. Fin. Agcy. Muni. Certif. Rev. Bonds, Ser. 21-1, Class A, 3.50%, 11/20/35	BBB+		4,065,649	4,245,220
CA Muni. Fin. Auth. Rev. Bonds
(Channing House), Ser. B, 5.00%, 5/15/47	AA−		6,530,000	7,124,020
(Eisenhower Med. Ctr.), Ser. A, 5.00%, 7/1/42	Baa2		300,000	333,627
(Cmnty. Med. Ctr.), Ser. A, 5.00%, 2/1/42	A3		3,400,000	3,802,981
(Channing House), Ser. B, 5.00%, 5/15/37	AA−		250,000	274,328
(Retirement Hsg. Foundation Oblig. Group), Ser. A, 5.00%, 11/15/32	A−/F		425,000	478,339
(Channing House), Ser. B, 5.00%, 5/15/32	AA−		150,000	165,651
(Retirement Hsg. Foundation Oblig. Group), Ser. A, 5.00%, 11/15/31	A−/F		750,000	840,237
(Retirement Hsg. Foundation Oblig. Group), Ser. A, 5.00%, 11/15/30	A−/F		250,000	280,783
CA Pub. Fin. Auth. Rev. Bonds, (Hoag Memorial Hosp./Newport Hlth. Care), 5.00%, 7/15/46	AA		2,000,000	2,370,288
CA School Fac. Fin. Auth. Rev. Bonds, (Kipp SoCal Pub. Schools), Ser. A
5.00%, 7/1/54	BBB		3,150,000	3,469,334
5.00%, 7/1/39	BBB		1,000,000	1,119,225
CA School Fac. Fin. Auth. 144A Rev. Bonds
(Granada Hills Charter High School), 5.00%, 7/1/54	BBB−		7,120,000	7,598,690
(Alliance College-Ready Pub. Schools), Ser. A, 5.00%, 7/1/51	BBB		1,570,000	1,664,262
(Green Dot Pub. Schools), Ser. A, 5.00%, 8/1/48	BBB−		5,250,000	5,694,837
(Green Dot Pub. Schools), Ser. A, 5.00%, 8/1/45	BBB−		1,500,000	1,581,241
(Granada Hills Charter High School), 5.00%, 7/1/43	BBB−		1,750,000	1,879,425
(Green Dot Pub. Schools), Ser. A, 5.00%, 8/1/38	BBB−		1,000,000	1,100,265
(Alliance College-Ready Pub. Schools), Ser. A, 5.00%, 7/1/36	BBB		1,250,000	1,336,212
(Alliance College-Ready Pub. Schools), Ser. A, 5.00%, 7/1/31	BBB		1,830,000	1,958,220

MUNICIPAL BONDS AND NOTES (100.4%)* cont.	Rating**		Principal amount	Value
California cont.
CA School Fac. Fin. Auth. 144A Rev. Bonds
(Alliance College-Ready Pub. Schools), Ser. C, 5.00%, 7/1/31	BBB		$1,425,000	$1,537,896
(Kipp SoCal Pub. Schools Oblig. Group), Ser. A, 4.00%, 7/1/55	BBB		1,075,000	1,104,021
(Kipp SoCal Pub. Schools Oblig. Group), Ser. A, 4.00%, 7/1/50	BBB		1,140,000	1,176,128
(Granada Hills Charter High School Oblig. Group), 4.00%, 7/1/48	BBB−		675,000	692,817
(Kipp SoCal Pub. Schools Oblig. Group), Ser. A, 4.00%, 7/1/40	BBB		800,000	837,924
(Granada Hills Charter High School Oblig. Group), 4.00%, 7/1/38	BBB−		465,000	483,643
CA School Fin. Auth. Rev. Bonds, (Kipp LA Projects), Ser. A, 5.125%, 7/1/44	BBB		1,060,000	1,112,462
CA State G.O. Bonds
4.00%, 11/1/50	Aa2		9,000,000	9,446,837
3.00%, 12/1/46	Aa2		1,750,000	1,623,517
3.00%, 12/1/43	Aa2		500,000	472,806
CA State Charter School Fin. Auth. 144A Rev. Bonds
(Aspire Pub. Schools Oblig. Group), Ser. A, 5.00%, 8/1/59	BBB		4,165,000	4,526,963
(Summit Pub. Schools), 5.00%, 6/1/53	Baa3		2,350,000	2,503,787
(Classical Academy Oblig. Group), Ser. A, 5.00%, 10/1/50	BBB−		3,000,000	3,267,933
(Aspire Pub. Schools Oblig. Group), Ser. A, 5.00%, 8/1/50	BBB		1,200,000	1,311,785
(Summit Pub. Schools), 5.00%, 6/1/47	Baa3		1,000,000	1,069,217
(Classical Academy Oblig. Group), Ser. A, 5.00%, 10/1/40	BBB−		215,000	236,903
(Aspire Pub. Schools Oblig. Group), Ser. A, 5.00%, 8/1/40	BBB		1,000,000	1,104,892
(Santa Clarita Valley Intl. Charter School), Ser. A, 4.00%, 6/1/61	BB/P		1,175,000	1,046,921
(Vista Charter Pub. Schools Oblig. Group), Ser. A, 4.00%, 6/1/61	BB		3,000,000	2,813,944
(Santa Clarita Valley Intl. Charter School), Ser. A, 4.00%, 6/1/51	BB/P		650,000	600,148
(Santa Clarita Valley Intl. Charter School), Ser. A, 4.00%, 6/1/41	BB/P		500,000	480,470
CA State Cmnty. College Fin. Auth. Rev. Bonds, (Orange Coast College Hsg.)
5.25%, 5/1/43	BB		500,000	542,372
5.00%, 5/1/37	BB		1,000,000	1,080,855
5.00%, 5/1/34	BB		800,000	868,330
5.00%, 5/1/33	BB		600,000	651,590
5.00%, 5/1/31	BB		825,000	900,190
CA State Dept. of Veterans Affairs Home Purchase Rev. Bonds, Ser. A, 4.00%, 12/1/49	AA		3,555,000	3,684,825

MUNICIPAL BONDS AND NOTES (100.4%)* cont.	Rating**		Principal amount	Value
California cont.
CA State Edl. Fac. Auth. Rev. Bonds
(Occidental College), 5.00%, 10/1/45	Aa3		$425,000	$462,020
(Pepperdine U.), 5.00%, 9/1/45 (Prerefunded 9/1/25)	Aa3		1,000,000	1,099,313
(Occidental College), 5.00%, 10/1/38	Aa3		595,000	646,827
(U. of Redlands), Ser. A, 5.00%, 10/1/37	Baa1		425,000	459,384
(U. of the Pacific), 5.00%, 11/1/36	A2		500,000	551,586
(U. of Redlands), Ser. A, 5.00%, 10/1/35	Baa1		1,000,000	1,056,312
(Chapman U.), Ser. B, 4.00%, 4/1/47	A2		4,940,000	5,104,858
(Loyola-Marymount U.), Ser. A, NATL, zero %, 10/1/28	A2		355,000	298,085
CA State Enterprise Dev. Auth. Student Hsg. Rev. Bonds, (Provident Group-SDSU Properties, LLC), Ser. A
5.00%, 8/1/57	Baa3		400,000	437,246
5.00%, 8/1/50	Baa3		500,000	552,215
5.00%, 8/1/40	Baa3		400,000	448,820
CA State Hlth. Fac. Fin. Auth. Rev. Bonds
(City of Hope Oblig. Group), 5.00%, 11/15/49	A1		5,000,000	5,506,139
(Los Angeles Biomedical Research Inst.), 5.00%, 9/1/43	Baa2		6,155,000	6,931,250
(Children’s Hosp. Los Angeles), Ser. A, 5.00%, 8/15/42	BBB+		4,000,000	4,479,334
(Los Angeles Biomedical Research Inst.), 5.00%, 9/1/37	Baa2		1,845,000	2,088,303
(City of Hope Oblig. Group), 4.00%, 11/15/45	A1		11,000,000	11,847,321
(Sutter Hlth. Oblig. Group), Ser. B, 4.00%, 11/15/38	A1		3,000,000	3,190,357
(Providence St. Joseph Hlth.), Ser. A, 4.00%, 10/1/35	Aa3		1,000,000	1,062,063
CA State Infrastructure & Econ. Dev. Bank Mandatory Put Bonds (2/1/26), (Colburn School (The)), 1.75%, 8/1/55	A+		4,600,000	4,470,562
CA State Infrastructure & Econ. Dev. Bank Rev. Bonds
(Equitable School Revolving Fund), Ser. B, 5.00%, 11/1/39	A		600,000	670,906
(Performing Arts Center of Los Angeles Cnty.), 5.00%, 12/1/34	A		445,000	518,390
(Performing Arts Center of Los Angeles Cnty.), 5.00%, 12/1/33	A		820,000	956,406
(Performing Arts Center of Los Angeles Cnty.), 5.00%, 12/1/32	A		780,000	911,115
(Performing Arts Center of Los Angeles Cnty.), 5.00%, 12/1/31	A		745,000	871,789
(Performing Arts Center of Los Angeles Cnty.), 5.00%, 12/1/27	A		610,000	691,150
(Performing Arts Center of Los Angeles Cnty.), 5.00%, 12/1/26	A		230,000	256,245
(Performing Arts Center of Los Angeles Cnty.), 5.00%, 12/1/25	A		540,000	590,444
(Performing Arts Center of Los Angeles Cnty.), 5.00%, 12/1/24	A		525,000	562,228

MUNICIPAL BONDS AND NOTES (100.4%)* cont.	Rating**		Principal amount	Value
California cont.
CA State Infrastructure & Econ. Dev. Bank Rev. Bonds
(Performing Arts Center of Los Angeles Cnty.), 5.00%, 12/1/23	A		$250,000	$262,061
Ser. B, 4.00%, 11/1/55	A		915,000	939,217
Ser. B, 4.00%, 11/1/50	A		860,000	891,440
(Los Angeles Cnty. Museum of Natural History Foundation), 4.00%, 7/1/50	A2		7,125,000	7,575,995
(CA Science Ctr. Foundation), 4.00%, 5/1/46	A3		1,250,000	1,321,034
Ser. B, 4.00%, 11/1/45	A		850,000	882,743
Ser. B, 4.00%, 11/1/39	A		1,360,000	1,425,863
(Performing Arts Center of Los Angeles Cnty.), 4.00%, 12/1/37	A		505,000	543,174
Ser. B, 4.00%, 11/1/37	A		1,720,000	1,809,033
(Performing Arts Center of Los Angeles Cnty.), 4.00%, 12/1/36	A		515,000	554,144
Ser. B, 4.00%, 11/1/36	A		800,000	843,035
(Performing Arts Center of Los Angeles Cnty.), 4.00%, 12/1/35	A		855,000	920,986
CA State Infrastructure & Econ. Dev. Bank 144A Rev. Bonds
(WFCS Holdings II, LLC), Ser. A-1, 5.00%, 1/1/56	BB/P		1,740,000	1,745,981
(WFCS Holdings, LLC), 5.00%, 1/1/55	BB−/P		3,050,000	3,062,035
(WFCS Holdings, LLC), 4.125%, 1/1/35	BB−/P		500,000	470,810
CA State Muni. Fin. Auth Mobile Home Park Rev. Bonds
(Caritas Sr. Hsg. Network), Ser. A, 5.00%, 8/15/31	A−		600,000	659,388
(Caritas Affordable Hsg., Inc.), Ser. A, 5.00%, 8/15/30	A−		1,000,000	1,045,260
(Caritas Sr. Hsg. Network), Ser. A, 5.00%, 8/15/30	A−		685,000	755,218
CA State Muni. Fin. Auth. Rev. Bonds
(Town & Country Manor of the Christian & Missionary Alliance), 5.00%, 7/1/49	AA−		2,650,000	3,000,974
(UCR North Dist. Phase 1 Student Hsg.), 5.00%, 5/15/49	Baa3		3,000,000	3,271,160
(HumanGood CA Oblig. Group), Ser. A, 5.00%, 10/1/44	A−/F		5,000,000	5,517,052
(Dundee Glasgow Student Hsg.), 5.00%, 5/15/43	Baa3		3,695,000	4,042,403
(CHF-Riverside I, LLC), 5.00%, 5/15/40	Baa3		2,000,000	2,199,228
(Master’s U. (The)), 5.00%, 8/1/39	BB+		3,390,000	3,620,979
(Town & Country Manor of the Christian & Missionary Alliance), 5.00%, 7/1/39	AA−		1,995,000	2,295,556
(Master’s U. (The)), 5.00%, 8/1/34	BB+		1,385,000	1,494,921
(Congregational Homes, Inc.), 4.00%, 11/15/56	BBB−/F		750,000	729,405
(Congregational Homes, Inc.), 4.00%, 11/15/52	BBB−/F		750,000	743,428
(West Village Student Hsg.), BAM, 4.00%, 5/15/48	AA		5,000,000	5,198,942
(Orchard Park Student Hsg.), BAM, 4.00%, 5/15/46	AA		1,375,000	1,417,085
(U. of the Pacific), 4.00%, 11/1/44	A2		1,180,000	1,248,578
(HumanGood CA Oblig. Group), Ser. A, 4.00%, 10/1/44	A−/F		5,000,000	5,230,328
(Congregational Homes, Inc.), 4.00%, 11/15/42	BBB−/F		295,000	296,768

MUNICIPAL BONDS AND NOTES (100.4%)* cont.	Rating**		Principal amount	Value
California cont.
CA State Muni. Fin. Auth. Rev. Bonds
(U. of the Pacific), 4.00%, 11/1/42	A2		$1,600,000	$1,709,999
(U. of the Pacific), 4.00%, 11/1/40	A2		600,000	640,527
(U. of the Pacific), 4.00%, 11/1/39	A2		585,000	627,769
(U. of the Pacific), 4.00%, 11/1/38	A2		900,000	970,156
(HumanGood CA Oblig. Group), Ser. A, 4.00%, 10/1/38	A−/F		3,790,000	3,975,206
(CHF-Davis II, LLC), BAM, 4.00%, 5/15/38	AA		1,300,000	1,359,238
(U. of the Pacific), 4.00%, 11/1/37	A2		400,000	433,450
(HumanGood CA Oblig. Group), Ser. A, 4.00%, 10/1/37	A−/F		2,820,000	2,961,691
(U. of the Pacific), 4.00%, 11/1/36	A2		860,000	935,090
(Orchard Park Student Hsg.), BAM, 4.00%, 5/15/35	AA		1,295,000	1,359,068
(United Airlines, Inc.), 4.00%, 7/15/29	B+		5,000,000	5,100,737
(CHF-Davis II, LLC), BAM, 3.00%, 5/15/51	AA		2,000,000	1,697,766
(CA Inst. of the Arts), 3.00%, 10/1/41	Baa1		960,000	864,032
CA State Muni. Fin. Auth. Special Tax
(BOLD Program), Ser. A, 4.00%, 9/1/51	BB−/P		1,500,000	1,515,263
Ser. B, 4.00%, 9/1/50	BB−/P		1,525,000	1,540,988
(BOLD Program), Ser. A, 4.00%, 9/1/46	BB−/P		1,090,000	1,102,546
Ser. B, 4.00%, 9/1/43	BB−/P		1,070,000	1,090,381
(BOLD Program), Ser. A, 4.00%, 9/1/41	BB−/P		660,000	674,750
Ser. B, 4.00%, 9/1/35	BB−/P		660,000	684,891
CA State Muni. Fin. Auth. Charter School Lease 144A Rev. Bonds, (Bella Mente Montessori Academy), Ser. A
5.00%, 6/1/48	Ba1		2,300,000	2,435,863
5.00%, 6/1/38	Ba1		1,680,000	1,807,836
5.00%, 6/1/28	Ba1		420,000	450,734
CA State Muni. Fin. Auth. Solid Waste Disp. 144A Mandatory Put Bonds (2/3/25), (Waste Management, Inc.), Ser. A, 1.30%, 2/1/39	A−		1,600,000	1,549,110
CA State Poll. Control Fin. Auth. Rev. Bonds, San Jose Wtr. Co.)
5.10%, 6/1/40	A		4,500,000	4,512,712
4.75%, 11/1/46	A		5,300,000	5,747,288
CA State Poll. Control Fin. Auth. 144A Rev. Bonds, (Wtr. Furnishing), 5.00%, 11/21/45	Baa3		14,250,000	14,500,085
CA State Poll. Control Fin. Auth. Solid Waste Disp. Mandatory Put Bonds (5/1/24), (Waste Management, Inc.), Ser. A
2.50%, 11/1/38	A−		2,500,000	2,509,042
2.50%, 7/1/31	A−		1,125,000	1,131,131
CA State Poll. Control Fin. Auth. Wtr. Furnishing 144A Rev. Bonds, (San Diego Cnty. Wtr. Auth. Desalination), 5.00%, 11/21/45	Baa3		4,390,000	4,807,015
CA State Pub. Wks. Board Rev. Bonds, (Various Cap. Projects.), Ser. A, 5.00%, 8/1/32	Aa3		5,500,000	6,611,357

MUNICIPAL BONDS AND NOTES (100.4%)* cont.	Rating**		Principal amount	Value
California cont.
CA State Statewide Communities Dev. Auth. Hosp. Rev. Bonds, (Methodist Hosp. of Southern CA)
5.00%, 1/1/48	BBB+		$2,000,000	$2,221,212
5.00%, 1/1/43	BBB+		7,195,000	8,055,782
CA State Tobacco Securitization Agcy. Rev. Bonds
(Merced Cnty. Tobacco Funding Corp.), 5.00%, 6/1/50	BBB−/P		970,000	1,050,683
Ser. B-1, 5.00%, 6/1/49	BBB−		1,000,000	1,082,724
(Sonoma Cnty. Securitization Corp.), 5.00%, 6/1/49	BBB−		500,000	543,504
(Kern Cnty. Tobacco Funding Corp.), 5.00%, 6/1/40	BBB/P		5,000,000	5,111,497
(Gold Country Settlement Funding Corp.), Ser. B-1, 4.00%, 6/1/49	BBB−		325,000	329,505
(Merced Cnty. Tobacco Funding Corp.), 4.00%, 6/1/42	BBB+		100,000	104,748
(Merced Cnty. Tobacco Funding Corp.), 4.00%, 6/1/41	A−		100,000	104,948
Ser. A, 4.00%, 6/1/40	A−		400,000	419,286
(Merced Cnty. Tobacco Funding Corp.), 4.00%, 6/1/40	A−		200,000	210,348
(Sonoma Cnty. Securitization Corp.), 4.00%, 6/1/40	A−		325,000	341,806
Ser. A, 4.00%, 6/1/39	A−		300,000	314,902
Ser. A, 4.00%, 6/1/38	A−		275,000	289,237
(Merced Cnty. Tobacco Funding Corp.), 4.00%, 6/1/38	A−		250,000	263,994
(Sonoma Cnty. Securitization Corp.), 4.00%, 6/1/38	A−		800,000	844,758
(Merced Cnty. Tobacco Funding Corp.), 4.00%, 6/1/37	A−		100,000	105,771
(Merced Cnty. Tobacco Funding Corp.), 4.00%, 6/1/36	A−		225,000	238,399
(Sonoma Cnty. Securitization Corp.), 4.00%, 6/1/36	A−		610,000	646,315
(Merced Cnty. Tobacco Funding Corp.), 4.00%, 6/1/35	A−		100,000	106,141
(Sonoma Cnty. Securitization Corp.), 4.00%, 6/1/35	A−		350,000	371,487
(Merced Cnty. Tobacco Funding Corp.), 4.00%, 6/1/34	A−		200,000	212,684
(Sonoma Cnty. Securitization Corp.), 1.375%, 6/1/30	A		35,000	34,250
(Gold Country Settlement Funding Corp.), Ser. B-1, 1.10%, 6/1/30	A		5,000	4,723
Ser. B-2, zero %, 6/1/55	BB/P		10,390,000	1,894,973
(Sonoma Cnty. Securitization Corp.), zero %, 6/1/55	BB/P		7,295,000	1,546,142
CA State U. Mandatory Put Bonds (11/1/26), Ser. B-2, 0.55%, 11/1/49	Aa2		1,500,000	1,375,544
CA State U. Rev. Bonds, Ser. A, 5.00%, 11/1/51	Aa2		5,740,000	6,617,777
CA State, Pub. Wks. Board Rev. Bonds, (Various Capital), Ser. B, 4.00%, 3/1/38	Aa3		450,000	483,312

MUNICIPAL BONDS AND NOTES (100.4%)* cont.	Rating**		Principal amount	Value
California cont.
CA Statewide Cmnty. Dev. Auth. Rev. Bonds
(Front Porch Cmnty. & Svcs.), Ser. A, 5.00%, 4/1/47	A−		$2,000,000	$2,201,696
(American Baptist Homes of the West), 5.00%, 10/1/45	A−/F		2,550,000	2,709,483
AGM, 5.00%, 11/15/44 (Prerefunded 11/15/24)	AA		5,195,000	5,604,918
(Enloe Med. Ctr.), 5.00%, 8/15/38	AA−		2,750,000	3,045,111
(Enloe Med. Ctr.), 5.00%, 8/15/35	AA−		1,580,000	1,751,768
(Episcopal Cmntys. and Svcs.), 5.00%, 5/15/32	A−/F		600,000	602,078
(Front Porch Cmnty. & Svcs.), Ser. A, 5.00%, 4/1/30	A−		310,000	347,810
(Terraces at San Joaquin Gardens), Ser. A, 5.00%, 10/1/22 (Escrowed to maturity)	BB/P		595,000	605,873
(Viamonte Senior Living 1, Inc.), Ser. A, 4.00%, 7/1/47	AA−		2,000,000	2,108,346
(Front Porch Cmnty. & Svcs.), Ser. A, 4.00%, 4/1/47	A−		1,625,000	1,686,821
(Marin Gen. Hosp.), Ser. A, 4.00%, 8/1/45	BBB		2,500,000	2,534,554
(Viamonte Senior Living 1, Inc.), Ser. A, 4.00%, 7/1/43	AA−		1,000,000	1,059,799
(Viamonte Senior Living 1, Inc.), Ser. A, 4.00%, 7/1/39	AA−		875,000	935,992
(Viamonte Senior Living 1, Inc.), Ser. A, 4.00%, 7/1/38	AA−		800,000	856,797
(Viamonte Senior Living 1, Inc.), Ser. A, 4.00%, 7/1/37	AA−		620,000	664,825
(Front Porch Cmnty. & Svcs. Oblig. Group), Ser. A, 3.00%, 4/1/51	A−		9,000,000	7,742,035
(Viamonte Senior Living 1, Inc.), Ser. B, 3.00%, 7/1/25	AA−		1,435,000	1,436,051
CA Statewide Cmnty. Dev. Auth. Special Tax, (Cmnty. Fac. Dist. No. 2020-02)
4.00%, 9/1/51	BB+/P		1,170,000	1,170,915
4.00%, 9/1/41	BB+/P		500,000	507,993
CA Statewide Cmnty. Dev. Auth. 144A Rev. Bonds
(Lancer Edl. Student Hsg.), Ser. A, 5.00%, 6/1/51	BB/P		1,440,000	1,521,448
(CA Baptist U.), Ser. A, 5.00%, 11/1/41	BB/P		1,535,000	1,668,483
(Lancer Edl. Student Hsg.), Ser. A, 5.00%, 6/1/39	BB/P		475,000	509,177
(Lancer Edl. Student Hsg.), Ser. A, 5.00%, 6/1/34	BB/P		375,000	404,905
(CA Baptist U.), Ser. A, 5.00%, 11/1/32	BB/P		720,000	794,960
(Lancer Edl. Student Hsg.), Ser. A, 3.00%, 6/1/29	BB/P		750,000	704,136
Carson, Pub. Fin. Auth. Reassessment Rev. Bonds, 5.00%, 9/2/28	BB/P		1,650,000	1,858,990
Centinela Valley, Union High School Dist. G.O. Bonds, Ser. C, AGM, 4.00%, 8/1/34	AA		5,000,000	5,299,354
Ceres, Unified School Dist. G.O. Bonds, BAM
zero %, 8/1/40	AA		1,285,000	625,303
zero %, 8/1/39	AA		1,075,000	546,902
zero %, 8/1/38	AA		1,000,000	532,248
zero %, 8/1/36	AA		545,000	316,655
zero %, 8/1/34	AA		715,000	453,704
zero %, 8/1/33	AA		250,000	165,750

MUNICIPAL BONDS AND NOTES (100.4%)* cont.	Rating**		Principal amount	Value
California cont.
Chino, Cmnty. Fac. Special Tax, (Dist. No. 2003-3)
4.00%, 9/1/50	BB/P		$1,265,000	$1,280,986
4.00%, 9/1/45	BB/P		500,000	509,063
3.00%, 9/1/25	BB/P		345,000	345,414
3.00%, 9/1/24	BB/P		335,000	335,689
Chula Vista, Muni. Fin. Auth. Special Tax Bonds
5.50%, 9/1/30	AA−		740,000	776,911
5.50%, 9/1/29	AA−		2,165,000	2,273,366
CMFA Special Fin. Agcy. I 144A Rev. Bonds, (Social Bond), Ser. A-2, 4.00%, 4/1/56	BB/P		3,500,000	3,185,396
Corona-Norco, School Dist. Pub. Fin. Auth. Special Tax Bonds, (Sr. Lien), Ser. A, 5.00%, 9/1/28 (Prerefunded 9/1/23)	AA−		275,000	287,459
Coronado, Cmnty. Dev. Successor Agcy. Tax Alloc. Bonds, Ser. A, 5.00%, 9/1/33	AA		11,915,000	12,997,894
CSCDA Cmnty. Impt. Auth. Rev. Bonds, (Pasadena Portfolio), Ser. A-2, 3.00%, 12/1/56	BBB−/P		10,850,000	8,320,205
CSCDA Cmnty. Impt. Auth. 144A Rev. Bonds
(Pasadena Portfolio), 4.00%, 12/1/56	BB/P		1,250,000	993,353
(Anaheim), 4.00%, 8/1/56	BB/P		2,500,000	2,244,217
(Jefferson-Anaheim), 3.125%, 8/1/56	BB+/P		2,775,000	2,099,172
(City of Orange Portfolio), 3.00%, 3/1/57	BBB−/P		1,610,000	1,227,239
(Essential Hsg.), Ser. A-2, 3.00%, 2/1/57	BBB−/P		4,800,000	3,656,992
(Jefferson-Anaheim), 2.875%, 8/1/41	BB+/P		2,300,000	2,096,667
Dixon, Special Tax, (Cmnty. Fac. Dist. No. 2019-1 Homestead)
4.00%, 9/1/45	BB−/P		1,000,000	1,018,125
4.00%, 9/1/40	BB−/P		400,000	411,018
4.00%, 9/1/36	BB−/P		175,000	182,067
4.00%, 9/1/33	BB−/P		425,000	443,309
Dublin, Special Tax, (Cmnty. Fac. Dist. No. 2015-1)
4.00%, 9/1/51	BB/P		865,000	870,535
4.00%, 9/1/45	BB/P		850,000	859,284
Eastern CA Muni. Waste Wtr. Dist. Rev. Bonds, Ser. A, 5.00%, 7/1/45	AA+		2,740,000	3,024,993
Emeryville, Redev. Successor Agcy. Tax Alloc. Bonds, Ser. A, AGM, 5.00%, 9/1/34	AA		500,000	537,124
Fairfield Cmnty., Fac. Special Tax, (Dist. No. 2016-1), 4.00%, 9/1/52	BB/P		2,500,000	2,521,890
Fairfield Cmnty., Fac. Dist. Special Tax Bonds, (Impt. Area B), Ser. A
5.00%, 9/1/49	BB/P		1,600,000	1,754,903
5.00%, 9/1/44	BB/P		1,000,000	1,103,374
5.00%, 9/1/39	BB/P		500,000	556,301
Federal Home Loan Mortgage Corporation Rev. Bonds, Ser. M-054, Class A, 2.35%, 12/15/35	AA+		965,000	907,076
Folsom Cordova, Unified School Dist. G.O. Bonds, (School Fac. Impt. Dist. No. 1), Ser. A, NATL, zero %, 10/1/25	Aa2		1,505,000	1,381,604
Folsom Ranch, Fin. Auth. Special Tax, (Cmnty. Fac. Dist. No. 19), 5.00%, 9/1/49	BB−/P		1,000,000	1,094,097

MUNICIPAL BONDS AND NOTES (100.4%)* cont.	Rating**		Principal amount	Value
California cont.
Fontana, Special Tax, (Cmnty. Fac. Dist. No. 85)
4.00%, 9/1/50	BB+/P		$900,000	$909,436
4.00%, 9/1/45	BB+/P		750,000	762,510
4.00%, 9/1/40	BB+/P		625,000	641,303
4.00%, 9/1/36	BB+/P		550,000	572,618
4.00%, 9/1/32	BB+/P		240,000	251,286
Foothill/Eastern Corridor Agcy. Rev. Bonds, Ser. A, 6.00%, 1/15/53 (Prerefunded 1/15/24)	A		8,000,000	8,576,064
Franklin-McKinley, School Dist. G.O. Bonds
(Election 2016), Ser. B, 5.00%, 8/1/44	Aa3		2,825,000	3,109,164
(Franklin-Mckinley School Dist.), Ser. A, 4.00%, 8/1/49	Aa3		2,300,000	2,422,805
Gilroy Unified School Dist. G.O. Bonds, (Election 2016)
4.00%, 8/1/44	Aa3		1,500,000	1,599,258
4.00%, 8/1/40	Aa3		350,000	375,297
4.00%, 8/1/39	Aa3		350,000	376,169
Golden State Tobacco Securitization Corp. Rev. Bonds
Ser. A-2, 5.00%, 6/1/47 (Prerefunded 6/1/22)	BB/P		11,000,000	11,071,434
Ser. A, 5.00%, 6/1/45 (Prerefunded 6/1/25)	Aa3		16,575,000	18,108,534
U.S. Govt. Coll., 5.00%, 6/1/40 (Prerefunded 6/1/25)	Aaa		13,180,000	14,378,265
Ser. A, 5.00%, 6/1/35 (Prerefunded 6/1/25)	Aaa		1,065,000	1,161,825
Ser. A, AMBAC, zero %, 6/1/24 (Escrowed to maturity)	Aa3		12,000,000	11,501,843
Hartnell Cmnty. College Dist. G.O. Bonds, Ser. A
zero %, 8/1/37	Aa2		3,500,000	1,921,655
zero %, 8/1/36	Aa2		4,750,000	2,746,488
zero %, 8/1/35	Aa2		1,000,000	606,779
Hastings Campus HFA Rev. Bonds, (U. of CA Hastings College of the Law), Ser. A, 5.00%, 7/1/61	BB−/P		3,500,000	3,761,270
Hsg. Fin. Agcy. Rev. Bonds, Ser. A, 4.25%, 1/15/35	BBB+		2,886,110	3,125,902
Inglewood, Redev. Agcy. Successor Tax Allocation Bonds, (Merged Redev.), Ser. A, BAM
5.00%, 5/1/38	AA		250,000	281,597
5.00%, 5/1/34	AA		500,000	564,869
Inland Valley, Dev. Agcy. Successor Tax Alloc. Bonds, Ser. A, 5.25%, 9/1/37	A		4,925,000	5,205,857
Irvine, Cmnty. Fac. Dist. No. 13-3 Special Tax Bonds
(Great Park Impt. Area No. 1), 5.00%, 9/1/39	BBB−/P		1,000,000	1,055,284
(Great Park Impt. Area No. 4), 4.00%, 9/1/41	BB−/P		2,500,000	2,613,000
Irvine, Impt. Board Act of 1915 Special Assmt. Bonds, (Dist No. 12-1), 5.00%, 9/2/23	A+		1,000,000	1,013,441
Irvine, Unified School Dist. Special Tax Bonds
(Cmnty. Fac. Dist. No. 09-1), Ser. A, 5.00%, 9/1/47	BB+/P		200,000	219,096
(Cmnty. Fac. Dist. No. 09-1), Ser. C, 5.00%, 9/1/47	BB+/P		1,000,000	1,095,480
(Cmnty. Fac. Dist. No. 09-1), Ser. A, 5.00%, 9/1/42	BB+/P		400,000	440,873
(Cmnty. Fac. Dist. No. 09-1), Ser. B, 5.00%, 9/1/42	BB+/P		1,000,000	1,102,183
BAM, 5.00%, 9/1/38	AA		2,500,000	2,681,309

MUNICIPAL BONDS AND NOTES (100.4%)* cont.	Rating**		Principal amount	Value
California cont.
Jurupa, Pub. Fin. Auth. Special Tax Bonds, Ser. A
5.00%, 9/1/33	A+		$600,000	$639,473
5.00%, 9/1/32	A+		2,475,000	2,636,623
Kaweah, Delta Hlth. Care Dist. Rev. Bonds, Ser. B, 5.00%, 6/1/40	A3		1,500,000	1,612,039
Lake Elsinore, Pub. Fin. Auth. Local Agcy. Special Tax Bonds, (Canyon Hills Impt. Areas), Ser. A & C
5.00%, 9/1/33	BB+/P		1,105,000	1,160,783
5.00%, 9/1/31	BB+/P		1,045,000	1,099,421
Long Beach Marina, Rev. Bonds, 5.00%, 5/15/40	BBB/F		1,000,000	1,052,706
Long Beach, Bond Fin. Auth. Rev. Bonds, (Natural Gas Purchase), Ser. A, 5.50%, 11/15/28	A2		5,000,000	5,817,372
Long Beach, Cmnty. College Dist. G.O. Bonds, (2008 Election), Ser. B
zero %, 8/1/34	Aa2		1,500,000	1,023,906
zero %, 8/1/33	Aa2		625,000	442,889
Long Beach, Harbor Rev. Bonds
(Green Bond), Ser. B, 5.00%, 5/15/43	AA		2,000,000	2,201,966
Ser. A, 5.00%, 5/15/40	AA		5,000,000	5,519,940
Long Beach, Unified School Dist. G.O. Bonds, Ser. D-1, zero %, 8/1/37	Aa2		1,000,000	540,214
Los Angeles Cnty., Pub. Wks. Fin. Auth. Rev. Bonds, Ser. A, 5.00%, 12/1/44	AA+		1,000,000	1,069,841
Los Angeles Ctny., Pub. Wks. Fin. Auth. Lease Rev. Bonds, Ser. D, 5.00%, 12/1/45	AA+		3,000,000	3,272,530
Los Angeles, Cmnty. College Dist. G.O. Bonds, Ser. G, 4.00%, 8/1/34 (Prerefunded 8/1/24)	Aaa		2,610,000	2,735,557
Los Angeles, Cmnty. Fac. Dist. No. 4 Special Tax Bonds, (Playa Vista Phase 1)
5.00%, 9/1/31	A+		1,480,000	1,585,332
5.00%, 9/1/30	A+		1,480,000	1,585,209
Los Angeles, Dept. of Arpt. Rev. Bonds
(Los Angeles Intl. Arpt.), Ser. F, 5.00%, 5/15/44 T	AA−		10,000,000	11,110,700
(Los Angeles Intl. Arpt.), Ser. F, 4.00%, 5/15/49 T	AA−		8,000,000	8,217,040
5.00%, 5/15/34	Aa3		1,000,000	1,201,489
5.00%, 5/15/33	Aa3		1,000,000	1,206,204
5.00%, 5/15/32	Aa3		750,000	908,009
4.00%, 5/15/35	Aa3		765,000	833,048
Los Angeles, Dept. of Wtr. & Pwr. Rev. Bonds, Ser. B, 5.00%, 7/1/48	Aa2		1,500,000	1,754,961
Los Angeles, Harbor Dept. Rev. Bonds, (Green Bond), Ser. C, 4.00%, 8/1/39	Aa2		2,200,000	2,347,893
M-S-R Energy Auth. Rev. Bonds
Ser. A, 6.50%, 11/1/39	BBB+		6,000,000	8,141,992
Ser. A, 6.125%, 11/1/29	BBB+		985,000	1,133,885
Ser. B, 6.125%, 11/1/29	BBB+		2,470,000	2,843,536
Menifee, Union School Dist. Cmnty. Fac. Special Tax, (Dist. No. 2011-1)
4.00%, 9/1/51	BB+/P		1,815,000	1,822,733
4.00%, 9/1/36	BB+/P		500,000	518,341

MUNICIPAL BONDS AND NOTES (100.4%)* cont.	Rating**		Principal amount	Value
California cont.
Merced, City School Dist. G.O. Bonds, (Election 2014), 5.00%, 8/1/45	Aa3		$3,500,000	$3,791,447
Modesto, Irrigation Dist. Fin. Auth. Elec. Syst. Rev. Bonds, Ser. A, 5.00%, 10/1/40	A+		2,790,000	3,048,700
Mount Diablo Unified School Dist. G.O. Bonds, Ser. B, 4.00%, 8/1/33 ###	Aa3		5,335,000	5,924,112
Murrieta Valley, Unified School Dist. G.O. Bonds, AGM, zero %, 9/1/31	Aa2		2,000,000	1,519,860
Murrieta, Pub. Fin. Auth. Special Tax Bonds, 5.00%, 9/1/26	A		1,000,000	1,012,265
Napa Valley, Cmnty. College Dist. G.O. Bonds
4.00%, 8/1/34	Aa3		1,500,000	1,585,670
4.00%, 8/1/33	Aa3		2,500,000	2,644,661
Norco, Special Tax Bonds, (Norco Ridge Ranch), BAM, 5.00%, 9/1/33	AA		660,000	748,831
North Natomas, Cmnty. Fac. Special Tax Bonds, (Dist. No. 4), Ser. E, 5.25%, 9/1/33	BBB+		1,500,000	1,562,301
Northern CA Energy Auth. Commodity Supply Mandatory Put Bonds (7/1/24), Ser. A, 4.00%, 7/1/49	A2		13,000,000	13,364,703
Ontario, Special Tax, (Cmnty. Fac. Dist. No. 53)
4.00%, 9/1/51	BB+/P		1,170,000	1,164,035
4.00%, 9/1/42	BB+/P		600,000	601,761
4.00%, 9/1/36	BB+/P		500,000	506,946
Ontario, Cmnty. Fac. Special Tax, (Dist. No. 43), 4.00%, 9/1/50	BB/P		1,000,000	1,014,076
Ontario, Intl. Arpt. Auth. Rev. Bonds, Ser. A, AGM
4.00%, 5/15/51	AA		4,750,000	4,941,512
4.00%, 5/15/41	AA		750,000	791,859
Orange Cnty., Cmnty. Fac. Dist. Special Tax Bonds, (Ladera Ranch — No. 04-1), Ser. A
5.00%, 8/15/33	A+		1,750,000	1,788,597
5.00%, 8/15/32	A+		1,000,000	1,022,113
Pacifica, School Dist. G.O. Bonds, 4.00%, 8/1/50	Aa3		2,750,000	2,895,773
Pico Rivera, Pub. Fin. Auth. Lease Rev. Bonds, NATL, 5.25%, 9/1/30	AA−		1,295,000	1,461,018
Pub. Fin. Auth. Rev. Bonds, (Sharp Healthcare), Ser. A, 4.00%, 8/1/47	AA		10,000,000	10,651,670
Rancho Cordova, Cmnty. Fac. Dist. Special Tax Bonds
(Sunridge Anatolia), Ser. 03-1, 5.00%, 9/1/32	BBB−/P		1,250,000	1,261,277
(Sunridge Anatolia No. 03-1), 4.00%, 9/1/27	BBB−/P		425,000	445,896
Redding, Elec. Syst. Rev. Bonds, NATL, 6.368%, 7/1/22 (Escrowed to maturity)	Baa2		505,000	511,256
Regents of the U. of CA Med. Ctr. (The) Rev. Bonds, Ser. L, 5.00%, 5/15/41	Aa3		2,000,000	2,200,129
River Islands Pub. Fin. Auth. Special Tax Bonds, (Cmnty. Fac. Dist. No. 2021-1)
4.00%, 9/1/51	BB−/P		650,000	652,079
4.00%, 9/1/41	BB−/P		1,000,000	1,011,017
Riverside Cnty., Pub. Fin. Auth. Tax Allocation Bonds, Ser. A, BAM, 4.00%, 10/1/40	AA		1,250,000	1,332,633

MUNICIPAL BONDS AND NOTES (100.4%)* cont.	Rating**		Principal amount	Value
California cont.
Riverside Cnty., Redev. Successor Agcy. Tax Alloc. Bonds, (Hsg.), Ser. B, BAM
5.00%, 10/1/41	AA		$1,990,000	$2,226,522
5.00%, 10/1/37	AA		1,010,000	1,130,243
5.00%, 10/1/32	AA		290,000	324,608
5.00%, 10/1/29	AA		775,000	868,197
5.00%, 10/1/28	AA		235,000	263,209
5.00%, 10/1/26	AA		500,000	560,075
5.00%, 10/1/24	AA		445,000	476,890
Riverside Cnty., Trans. Comm. Toll Rev. Bonds
Ser. A, 5.75%, 6/1/44 (Prerefunded 6/1/23)	A		750,000	785,009
Ser. B-1, 4.00%, 6/1/46	A		3,250,000	3,383,356
Rocklin, Special Tax, (Cmnty. Fac. Dist. No. 10)
5.00%, 9/1/40	BB+/P		500,000	529,712
5.00%, 9/1/39	BB+/P		500,000	531,732
Rocklin, Special Tax Bonds, 5.00%, 9/1/35	BB/P		3,500,000	3,741,682
Rohnert Pk., Cmnty. Dev. Agcy. Tax Alloc. Bonds, (Rohnert Redev.), NATL, zero %, 8/1/25	A+		1,340,000	1,231,351
Romoland, School Dist. Special Tax, Ser. A
4.00%, 9/1/50	BB+/P		2,360,000	2,377,986
4.00%, 9/1/45	BBB+/F		750,000	759,269
4.00%, 9/1/40	BB+/P		555,000	566,650
Romoland, School Dist. Special Tax Bonds, (Cmnty. Fac. Dist. No. 91-1), 5.00%, 9/1/41	BB/P		1,000,000	1,094,640
Roseville, Special Tax
5.00%, 9/1/49	BB/P		1,000,000	1,076,884
5.00%, 9/1/45	BB/P		400,000	431,915
5.00%, 9/1/39	BB/P		465,000	507,322
(Fiddyment Ranch Cmnty. Fac. Dist. No. 5), 4.00%, 9/1/50	BB/P		1,775,000	1,744,605
(Ranch at Sierra Vista Cmnty. Fac. Dist. No. 1), 4.00%, 9/1/50	BB−/P		450,000	451,825
(Ranch at Sierra Vista Cmnty. Fac. Dist. No. 1), 4.00%, 9/1/45	BB−/P		1,000,000	1,014,516
(Fiddyment Ranch Cmnty. Fac. Dist. No. 5), 4.00%, 9/1/41	BB/P		700,000	705,119
(Ranch at Sierra Vista Cmnty. Fac. Dist. No. 1), 4.00%, 9/1/40	BB−/P		575,000	588,741
(Ranch at Sierra Vista Cmnty. Fac. Dist. No. 1), 4.00%, 9/1/35	BB−/P		350,000	363,200
(Ranch at Sierra Vista Cmnty. Fac. Dist. No. 1), 4.00%, 9/1/33	BB−/P		250,000	260,028
Roseville, Special Tax Bonds, (Westpark Cmnty. Pub. Fac. Dist. No. 1)
5.00%, 9/1/37	BBB−/P		1,250,000	1,334,504
5.00%, 9/1/33	BBB−/P		1,000,000	1,069,468
Sacramento, Special Tax, (Greenbriar Cmnty. Fac. Dist. No 2018-03)
4.00%, 9/1/50	BB/P		650,000	641,018
4.00%, 9/1/41	BB/P		1,000,000	1,002,382

MUNICIPAL BONDS AND NOTES (100.4%)* cont.	Rating**		Principal amount	Value
California cont.
Sacramento, City Unified School Dist. G.O. Bonds, Ser. G, AGM
4.00%, 8/1/49	AA		$3,000,000	$3,204,775
4.00%, 8/1/44	AA		1,000,000	1,075,539
4.00%, 8/1/41	AA		765,000	827,643
4.00%, 8/1/40	AA		890,000	964,197
4.00%, 8/1/39	AA		750,000	816,084
4.00%, 8/1/38	AA		800,000	873,084
4.00%, 8/1/37	AA		450,000	493,284
Sacramento, City Fin. Auth. Tax Alloc. Bonds, Ser. A, FGIC, NATL, zero %, 12/1/23	A		10,000,000	9,619,142
Salinas, Union High School Dist. G.O. Bonds, Ser. B, 4.00%, 8/1/49	Aa2		3,600,000	3,816,953
San Bernardino Cnty., FRB, Ser. C, 0.461%, 8/1/23	AA+		5,000,000	5,015,367
San Bernardino Cnty., Special Tax Bonds, 5.00%, 9/1/33	BBB−/P		2,500,000	2,626,206
San Diego Assn. of Govt. Capital Grant Receipts Rev. Bonds, (Mid Coast Corridor Transit), Ser. B, 1.80%, 11/15/27	A−		9,465,000	9,105,180
San Diego Cmnty. Fac. Dist. No. 3 Special Tax Bonds, 5.00%, 9/1/36	BBB/P		975,000	1,003,542
San Diego Cnty., Special Tax Bonds
(Harmony Grove Village-Impt. Area No. 1), Ser. A, 4.00%, 9/1/50	BB/P		875,000	884,917
(Harmony Grove Village-Impt. Area No. 2), Ser. A, 4.00%, 9/1/50	BB/P		1,100,000	1,112,467
(Harmony Grove Village-Impt. Area No. 1), Ser. A, 4.00%, 9/1/45	BB/P		550,000	559,294
(Harmony Grove Village-Impt. Area No. 2), Ser. A, 4.00%, 9/1/45	BB/P		1,000,000	1,016,899
San Diego Cnty., Regl. Arpt. Auth. Rev. Bonds
Ser. A, 5.00%, 7/1/51	A2		5,000,000	5,732,307
Ser. B, 4.00%, 7/1/44	A−		1,000,000	1,024,053
San Diego, Assn. of Govt. South Bay Expressway Toll Rev. Bonds, Ser. A, 5.00%, 7/1/42	A		3,000,000	3,402,172
San Diego, Tobacco Settlement Funding Corp. Rev. Bonds, Ser. C, 4.00%, 6/1/32	BBB		710,000	729,091
San Diego, Unified School Dist. G.O. Bonds, Ser. K-2
zero %, 7/1/35	Aa2		1,025,000	650,100
zero %, 7/1/33	Aa2		1,645,000	1,138,537
zero %, 7/1/32	Aa2		1,955,000	1,414,320
San Francisco City & Cnty., Special Tax, (Cmnty. Fac. Dist. No. 2016-1), Ser. 21
4.00%, 9/1/51	BB−/P		1,100,000	1,094,392
4.00%, 9/1/46	BB−/P		1,000,000	1,002,622
4.00%, 9/1/41	BB−/P		850,000	860,525
San Francisco, City & Cnty. G.O. Bonds, Ser. A, 4.00%, 6/15/36	Aaa		5,155,000	5,367,868
San Francisco, City & Cnty. Arpt. Comm. Intl. Arpt. Rev. Bonds, Ser. 20B, 4.00%, 5/1/40	A1		500,000	529,470

MUNICIPAL BONDS AND NOTES (100.4%)* cont.	Rating**		Principal amount	Value
California cont.
San Francisco, City & Cnty. Arpt. Comm. Intl. Arpt. VRDN, Ser. B, 0.52%, 5/1/58	VMIG 1		$3,505,000	$3,505,000
San Francisco, City & Cnty. Redev. Agcy. Cmnty. Successor Special Tax Bonds, (No. 6 Mission Bay South Pub. Impts.), Ser. A, 5.00%, 8/1/31	BBB/P		1,140,000	1,148,183
San Francisco, City & Cnty. Redev. Agcy. Cmnty. Successor Tax Alloc. Bonds, (Mission Bay South Redev.), Ser. A, 5.00%, 8/1/43	A−		1,750,000	1,871,795
San Jacinto, Unified School Dist. Fin. Auth. Special Tax
5.00%, 9/1/49	BB/P		2,650,000	2,894,756
5.00%, 9/1/44	BB/P		1,800,000	1,973,727
5.00%, 9/1/36	BB/P		600,000	664,118
San Joaquin Hills, Trans. Corridor Agcy. Toll Road Rev. Bonds, Ser. A, 4.00%, 1/15/34	A		6,792,000	7,386,070
San Joaquin, Regl. Rail Comm. COP
5.00%, 5/1/34	A2		550,000	651,296
5.00%, 5/1/33	A2		500,000	592,885
4.00%, 5/1/40	A2		390,000	422,169
4.00%, 5/1/39	A2		370,000	401,483
4.00%, 5/1/38	A2		460,000	499,974
4.00%, 5/1/37	A2		490,000	533,886
4.00%, 5/1/36	A2		350,000	381,478
4.00%, 5/1/35	A2		330,000	360,034
Santa Ana, Gas Tax Rev. Bonds
4.00%, 1/1/40	AA−		1,670,000	1,779,929
4.00%, 1/1/39	AA−		1,710,000	1,836,802
Santa Maria, G.O. Bonds, (Joint Union High School Dist. Election 2016)
3.00%, 8/1/42	Aa2		2,210,000	2,056,321
3.00%, 8/1/39	Aa2		1,385,000	1,311,429
3.00%, 8/1/37	Aa2		355,000	347,217
3.00%, 8/1/36	Aa2		250,000	247,945
Santee, CDC Successor Agcy. Tax Allocation Bonds, Ser. A, BAM, 5.00%, 8/1/31	AA		2,410,000	2,660,921
School Fin. Fac. Auth. 144A Rev. Bonds, (Kipp LA Projects), Ser. A, 5.00%, 7/1/45	BBB		1,500,000	1,594,509
South Orange Cnty., Pub. Fin. Auth. Special Tax Bonds, Ser. A
5.00%, 8/15/32	AA		1,000,000	1,040,551
5.00%, 8/15/30	AA		1,130,000	1,175,833
Southern CA Pub. Pwr. Auth. Rev. Bonds, (Natural Gas No. 1), Ser. A, 5.25%, 11/1/24	A2		2,850,000	3,064,844
Stockton, Pub. Wtr. Fin. Auth. Rev. Bonds, (Delta Wtr. Supply), Ser. A
6.25%, 10/1/40 (Prerefunded 10/1/23)	A		1,250,000	1,333,019
6.25%, 10/1/38 (Prerefunded 10/1/23)	A		2,235,000	2,383,438
6.125%, 10/1/35 (Prerefunded 10/1/23)	A		750,000	798,436
Stockton, Unified School Dist. COP
5.00%, 2/1/36	A		1,000,000	1,131,012
5.00%, 2/1/35	A		2,410,000	2,727,583