Top 10 Fixed-Income Holdings

Portfolio %

1) Los Angeles CA Wstwtr Sys     5.00%,  6/01/26     

4.57%

2) San Francisco City/Cnty CA Pub Util Wtr Series 2012C  5.00%, 11/01/26 

4.53%

3) Los Angeles Cnty CA Met Trnsp Auth (Los Angeles Cnty Ca Mta Sales Tax)  5.00%, 7/01/25  

3.83%

4) California Pub Wks Brd (Univ Of California Lease)  Series 2011A  5.25%,  12/01/26

3.56%

5) Los Angeles CA Harbor Dept     5.00%,  8/01/26       

3.19%

6) Los Angeles CA Cmnty Redev Agy (Los Angeles Ca  Cra Grand Ctrl) AMBAC Series 02  5.375%, 12/01/26

3.14%

7) Puerto Rico Sales Tax Fin Corp.   Series 2011A   5.00%,  8/01/43

3.01%

8) Port of Oakland CA   Series 2012P  5.00%, 5/01/29

2.97%

9) Clovis CA USD GO   Series 2012A  5.00%, 8/01/28

2.55%

10) San Diego Cnty CA Regl Trnsp Commn   Series 2012A  5.00%,  4/01/28

2.52%

Sector/Industry Breakdown

Portfolio %

Revenue

     Water & Sewer                     

16.41%

     Electric Utility                       

8.09%

     Port                                        

6.16%

     Revenue - Miscellaneous               

4.08%

     Higher Education - Public              

3.56%

     Airport                         

2.64%

     Higher Education - Private               

2.39%

     Primary/Secondary Ed. - Private            

1.53%

     Health Care - Not-for-Profit              

1.33%

     Industrial Development - Utility            

0.19%

SUBTOTAL                       

46.38%

Tax Supported

     Special Tax                         

22.38%

      Local G.O.                         

10.27%

     Tax-Supported Local Lease            

3.46%

     State G.O.                            

2.13%

     Assessment District                  

2.02%

     Tax-Supported State Lease            

1.76%

SUBTOTAL                                

42.02%

Insured/Guaranteed

     Insured                                  

6.57%

SUBTOTAL                              

6.57%

Asset-Backed

     Housing - Multi-Family                 

2.73%

SUBTOTAL                                  

2.73%

Prerefunded/ETM                    

2.30%

Total                                 

100.00%

State Breakdown

Portfolio %

California                     

93.14%

Puerto Rico                       

4.57%

Nevada                           

1.05%

Guam                             

1.05%

Ohio                                   

0.19%

Total Investments                    

100.00%

Credit Quality Breakdown

Portfolio %

AAA                    

15.21%

AA                        

53.47%

A                            

20.31%

BBB                          

4.21%

BB                               

1.44%

Not Rated                     

3.06%

Pre-refunded Bonds           

2.30%

Total Investments            

100.00%

Portfolio Statistics:

     AMT Percentage:    

13.61%

     Average Coupon:       

5.42%

     Percentage of Leverage:

          Bank Borrowing:       

0.00%

          Investment Operations:    

0.29%

          Preferred Stock:           

35.36%

          Tender Option Bonds:      

4.12%

          Term Asset-Backed Loans Facility (TALF):       

0.00%

          Total Fund Leverage:            

39.77%*

     Average Effective Maturity:         

6.38 Years

     Effective Duration:               

5.64 Years

     Total Net Assets:                 

$205.20 Million**

     Common Stock Net Asset Value:          

$15.51

     Number of Holdings:                 

78

     Portfolio Turnover:                    

14%