Top 10 Fixed-Income Holdings

Portfolio %

1) Los Angeles Department of Water    Series 2013B  5.00%, 7/01/32

3.45%

2) Los Angeles County Metropolitan Transportation Authority  (Los Angeles County Metropolitan Transportation Authority Sales Tax)  Series 2009  5.00%, 7/01/25

3.40%

3) San Diego Public Facilities Financing Authority      5.00%, 5/15/36

2.88%

4) San Diego Unified School District/CA    Series 2013C  5.00%, 7/01/32

2.86%

5) Bay Area Toll Authority    Series 2013S  5.00%, 4/01/33 (Prerefunded/ETM)

2.83%

6) Port of Los Angeles    Series 2009C  5.00%, 8/01/26

2.82%

7) City of San Francisco CA Public Utilities Commission Wastewater Revenue    Series 2013B  5.00%, 10/01/32

2.61%

8) San Diego County Water Authority Financing Corp.    Series 2013  5.00%, 5/01/31

2.39%

9) University of California    Series 2012G  5.00%, 5/15/31

2.38%

10) California Statewide Communities Development Authority(Buck Institute for Research on Aging)  AGM  Series 2014  5.00%, 11/15/44

2.20%

Sector/Industry Breakdown

Portfolio %

Revenue

Health Care - Not-for-Profit

10.10%

Revenue - Miscellaneous

10.09%

Water & Sewer

9.09%

Primary/Secondary Ed. - Public

5.00%

Electric Utility

4.39%

Toll Roads/Transit

3.79%

Port

3.70%

Tobacco Securitization

2.42%

Higher Education - Public

2.38%

Airport

2.15%

Senior Living

1.67%

Higher Education - Private

1.61%

Primary/Secondary Ed. - Private

1.39%

SUBTOTAL

57.78%

Tax Supported

Local G.O.

9.96%

Special Tax

9.02%

Tax-Supported Local Lease

7.30%

Assessment District

3.39%

State G.O.

1.11%

SUBTOTAL

30.78%

Prerefunded/ETM

9.99%

Asset-Backed

Housing - Multi-Family

1.25%

SUBTOTAL

1.25%

Cash Equivalents

Investment Companies

0.20%

SUBTOTAL

0.20%

Total

100.00%

State Breakdown

Portfolio %

California

92.33%

New York

1.69%

Florida

1.45%

Guam

1.45%

New Jersey

1.26%

Illinois

0.55%

Missouri

0.54%

Pennsylvania

0.53%

Other

0.20%

Total Investments

100.00%

Credit Quality Breakdown

Portfolio %

AAA

10.34%

AA

44.68%

A

13.47%

BBB

15.13%

BB

2.30%

B

1.25%

Not Rated

2.64%

Pre-refunded Bonds

9.99%

Short-Term Investments

0.20%

Total Investments

100.00%

Bonds By Maturity

Portfolio %

Less than 1 year

0.20%

1 to 5 years

0.00%

5 to 10 years

13.24%

10 to 20 years

59.50%

20 to 30 years

24.83%

More Than 30 years

2.23%

Other

0.00%

Total Investments

100.00%

Portfolio Statistics:

AMT Percent:

3.25%

Average Coupon:

5.10%

Percentage of Leverage:

Bank Borrowing:

0.00%

Investment Operations:

0.00%

Auction Preferred Shares (APS):

15.51%

Tender Option Bonds:

4.14%

Variable Rate MuniFund Term Preferred Shares (VMTPs):

20.83%

Total Fund Leverage:

40.48%*

Average Effective Maturity:

5.13  Years

Effective Duration:

4.46  Years

Total Net Assets:

$155.17 Million**

Common Stock Net Asset Value:

$14.65

Number of Holdings:

87

Portfolio Turnover:

17%