MFS CALIFORNIA MUNICIPAL FUND 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 811-09537

MFS CALIFORNIA MUNICIPAL FUND

(Exact name of registrant as specified in charter)

111 Huntington Avenue, Boston, Massachusetts 02199

(Address of principal executive offices) (Zip code)

Christopher R. Bohane

Massachusetts Financial Services Company

111 Huntington Avenue

Boston, Massachusetts 02199

(Name and address of agents for service)

Registrant’s telephone number, including area code: (617) 954-5000

Date of fiscal year end: November 30

Date of reporting period: February 28, 2018


ITEM 1. SCHEDULE OF INVESTMENTS.


Quarterly Report
February 28, 2018
MFS®  California Municipal Fund


Portfolio of Investments
2/28/18 (unaudited)
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset classes.
Issuer     Shares/Par Value ($)
Municipal Bonds – 168.5%
Airport Revenue – 11.1%
Los Angeles, CA, Department of Airports Rev. (Los Angeles International), “C”, BHAC, 5.25%, 5/15/2038 (Prerefunded 5/15/2018)   $ 750,000 $ 756,180
Orange County, CA, Airport Rev., “A”, 5%, 7/01/2031     190,000 198,158
San Diego County, CA, Regional Airport Authority Rev., “A”, 5%, 7/01/2021     500,000 538,490
San Diego County, CA, Regional Airport Authority Rev., “A”, 5%, 7/01/2043     500,000 557,510
San Diego County, CA, Regional Airport Authority Rev., “B”, 5%, 7/01/2042     335,000 374,125
San Diego County, CA, Regional Airport Authority Rev., “B”, 5%, 7/01/2047     335,000 372,718
San Francisco, CA, City & County Airports Commission, International Airport Rev., “A”, 5%, 5/01/2030     285,000 315,378
San Francisco, CA, City & County Airports Commission, International Airport Rev., “A”, 5%, 5/01/2031     150,000 165,675
San Jose, CA, Airport Rev., “A-2”, 5.25%, 3/01/2034     440,000 478,988
        $ 3,757,222
General Obligations - General Purpose – 5.9%
Commonwealth of Puerto Rico, “A”, NATL, 5.5%, 7/01/2020   $ 165,000 $ 167,006
Commonwealth of Puerto Rico, Public Improvement Refunding, “A-4”, AGM, 5%, 7/01/2031     40,000 41,494
Puerto Rico Public Buildings Authority Rev., “H”, AMBAC, 5.5%, 7/01/2018     125,000 125,741
Puerto Rico Public Buildings Authority Rev., “M-2”, AMBAC, 10%, 7/01/2035     30,000 31,420
State of California, 5.25%, 4/01/2035     455,000 511,329
State of California, 5.5%, 3/01/2040     630,000 675,914
State of California, 5.25%, 11/01/2040     415,000 450,371
        $ 2,003,275
General Obligations - Schools – 34.8%
Alhambra, CA, Unified School District, “B”, ASSD GTY, 5.25%, 8/01/2028 (Prerefunded 8/01/2019)   $ 500,000 $ 526,925
Banning, CA, Unified School District (Election of 2006), “B”, ASSD GTY , 5.25%, 8/01/2033 (Prerefunded 8/01/2018)     500,000 508,285
Beaumont, CA, Unified School District (Election of 2008), Capital Appreciation, “C”, AGM, 0%, 8/01/2040     955,000 370,072
Beaumont, CA, Unified School District (Election of 2008), Capital Appreciation, “C”, AGM, 0%, 8/01/2044     1,000,000 325,760
Folsom Cordova, CA, Unified School District (Election of 2012), “A”, 5%, 10/01/2038     535,000 601,287
Lake Tahoe, CA, Unified School District (Election of 2008), Capital Appreciation, AGM, 0%, 8/01/2045     515,000 350,849
Los Angeles, CA, Community College District, 3%, 8/01/2039     455,000 409,919
Mendocino Lake, CA, Community College District Rev. (Election of 2006), Capital Appreciation, “B”, AGM, 0%, 8/01/2032     330,000 193,994
Montebello, CA, Unified School District (Election of 2004), “A-1”, ASSD GTY , 5.25%, 8/01/2034 (Prerefunded 8/01/2019)     355,000 373,858
Montebello, CA, Unified School District (Election of 2016), “A”, 4%, 8/01/2046     255,000 260,296
Mount San Antonio, CA, Community College District Rev. (Election of 2008), Convertible Capital Appreciation, 0% to 8/01/2028, 6.25% to 8/01/2043     855,000 694,422
Napa Valley, CA, Unified School District, 5%, 8/01/2020     225,000 243,821
Oakland, CA, Unified School District Rev., AGM, 5%, 8/01/2028     170,000 199,726
Oakland, CA, Unified School District Rev., AGM, 5%, 8/01/2030     170,000 197,970
Oxnard, CA School District (Ventura County), “A”, CALHF, 5%, 8/01/2045     410,000 465,998
Pittsburg, CA, Unified School District, “B”, AGM, 5.5%, 8/01/2034 (Prerefunded 8/01/2018)     500,000 508,905
Pomona, CA, Unified School District, “A”, NATL, 6.55%, 8/01/2029     1,000,000 1,252,900
San Diego, CA, Community College (Election of 2002), 5.25%, 8/01/2033 (Prerefunded 8/01/2019)     125,000 131,731
San Diego, CA, Unified School District (Election of 2008), Capital Appreciation, “G”, 0%, 7/01/2034     265,000 125,496
San Diego, CA, Unified School District (Election of 2012), “I”, 4%, 7/01/2047     355,000 367,010
San Joaquin, CA, Delta Community College District (Election of 2004), Capital Appreciation, “B”, AGM, 0%, 8/01/2018     400,000 397,776
San Jose, CA, Evergreen Community College District (Election of 2010), “A”, 5%, 8/01/2041     265,000 294,039
San Mateo County, CA, Union High School District, “E”, 3%, 9/01/2041     560,000 492,195
Santee, CA, School District (Election of 2006), Capital Appreciation, “D”, ASSD GTY , 0%, 8/01/2043     765,000 261,408
Vallejo City, CA, Unified School District, “A”, NATL, 5.9%, 8/01/2025     500,000 583,870
Victor, CA, Elementary School District (Election of 2008), “A”, ASSD GTY, 5.125%, 8/01/2034 (Prerefunded 8/01/2019)     500,000 525,690
West Contra Costa, CA, Unified School District, “A”, NATL, 5.7%, 2/01/2023     500,000 588,470
West Covina, CA, Unified School District, “A”, NATL, 5.8%, 2/01/2021     500,000 555,165
        $ 11,807,837
1


Portfolio of Investments (unaudited) – continued
Issuer     Shares/Par Value ($)
Municipal Bonds – continued
Healthcare Revenue - Hospitals – 27.9%
ABAG Finance Authority for Non-Profit Corps., CA, Rev. (Sharp Healthcare), 6.25%, 8/01/2039 (Prerefunded 8/01/2019)   $ 505,000 $ 538,870
ABAG Finance Authority for Non-Profit Corps., CA, Rev. (Sharp Healthcare), “A”, 5%, 8/01/2026     110,000 120,840
California Health Facilities Financing Authority Rev. (Children's Hospital Los Angeles), “A”, 5%, 8/15/2042     450,000 502,002
California Health Facilities Financing Authority Rev. (Memorial Health Services), “A”, 5%, 10/01/2033     295,000 326,553
California Health Facilities Financing Authority Rev. (Providence St. Joseph Health System), “A”, 3%, 10/01/2041     220,000 194,951
California Health Facilities Financing Authority Rev. (Scripps Health), “A”, 5%, 11/15/2032     525,000 578,161
California Health Facilities Financing Authority Rev. (Scripps Health), “A”, 5%, 11/15/2040     255,000 280,344
California Health Facilities Financing Authority Rev. (Sutter Health), “B”, 5.875%, 8/15/2031     500,000 548,540
California Health Facilities Financing Authority Rev. (Sutter Health), “B”, 5%, 11/15/2035     460,000 529,607
California Health Facilities Financing Authority Rev. (Sutter Health), “B”, 5%, 11/15/2046     535,000 599,847
California Municipal Finance Authority Rev. (Community Medical Centers), “A”, 5%, 2/01/2036     225,000 248,650
California Municipal Finance Authority Rev. (Community Medical Centers), “A”, 5%, 2/01/2037     150,000 165,165
California Municipal Finance Authority Rev. (Community Medical Centers), “A”, 5%, 2/01/2042     75,000 81,808
California Municipal Finance Authority Rev. (Northbay Healthcare Group), 5%, 11/01/2028     45,000 49,853
California Municipal Finance Authority Rev. (Northbay Healthcare Group), 5%, 11/01/2029     35,000 38,730
California Municipal Finance Authority Rev. (Northbay Healthcare Group), 5%, 11/01/2030     15,000 16,561
California Municipal Finance Authority Rev. (Northbay Healthcare Group), 5%, 11/01/2035     65,000 70,788
California Municipal Finance Authority Rev. (Northbay Healthcare Group), 5%, 11/01/2044     85,000 91,418
California Public Finance Authority Rev. (Henry Mayo Newhall Hospital), 5%, 10/15/2047     455,000 491,323
California Statewide Communities Development Authority Rev. (Adventist), ASSD GTY, 5%, 3/01/2037 (Prerefunded 5/23/2018)     490,000 494,047
California Statewide Communities Development Authority Rev. (Enloe Medical Center), “A”, BAM, 5.5%, 8/15/2023     500,000 509,305
California Statewide Communities Development Authority Rev. (Kaiser Permanente), “A”, 5%, 4/01/2042     455,000 497,561
California Statewide Communities Development Authority Rev. (Loma Linda University Medical Center), “A”, 5.5%, 12/01/2054     350,000 378,175
California Statewide Communities Development Authority Rev. (Redlands Community Hospital), 5%, 10/01/2046     350,000 381,913
California Statewide Communities Development Authority Rev. (Santa Ynez Valley Cottage Hospital), 5.25%, 11/01/2030     260,000 278,736
California Statewide Communities Development Authority Rev. (Sutter Health), “A”, 5%, 8/15/2032     610,000 674,349
California Statewide Communities Development Authority Rev. (Trinity Health Corp.), 5%, 12/01/2041     450,000 494,559
Upland, CA, COP (San Antonio Community Hospital), 6.375%, 1/01/2032 (Prerefunded 1/01/2021)     250,000 282,232
        $ 9,464,888
Healthcare Revenue - Long Term Care – 5.5%
ABAG Finance Authority for Non-Profit Corps., CA, Rev. (Episcopal Senior Communities), 6.125%, 7/01/2041   $ 150,000 $ 165,648
ABAG Finance Authority for Non-Profit Corps., CA, Rev. (Eskaton Properties, Inc.), 5%, 11/15/2035     230,000 248,055
California Statewide Communities Development Authority Rev. (899 Charleston Project), “A”, 5.25%, 11/01/2044     295,000 312,473
California Statewide Communities Development Authority Rev. (Episcopal Communities & Services for Seniors Obligated Group), 5%, 5/15/2047     315,000 338,014
California Statewide Communities Development Authority Rev. (Front Port Communities and Services), “A”, 4%, 4/01/2042     115,000 115,520
California Statewide Communities Development Authority Rev. (Front Port Communities and Services), “A”, 5%, 4/01/2047     315,000 348,122
Los Angeles County, CA, Regional Financing Authority Rev. (Montecedro Inc. Project), “A”, CALHF, 5%, 11/15/2044     300,000 332,508
        $ 1,860,340
Industrial Revenue - Other – 1.7%
New York Liberty Development Corp. Rev. (Goldman Sachs Headquarters), 5.25%, 10/01/2035   $ 485,000 $ 595,721
Miscellaneous Revenue - Other – 4.5%
ABAG Finance Authority for Non-Profit Corps., CA, Rev. (Jackson Lab), 5%, 7/01/2037   $ 400,000 $ 438,204
California Infrastructure & Economic Development Bank Rev. (Academy of Motion Picture Arts and Sciences Obligated Group), “A”, 5%, 11/01/2030     235,000 268,104
California Infrastructure & Economic Development Bank Rev. (Academy of Motion Picture Arts and Sciences Obligated Group), “A”, 5%, 11/01/2034     170,000 192,022
California Infrastructure & Economic Development Bank Rev. (Academy of Motion Picture Arts and Sciences Obligated Group), “A”, 5%, 11/01/2035     170,000 191,544
California Statewide Communities Development Authority Rev. (Buck Institute for Research on Aging), AGM, 5%, 11/15/2044     385,000 427,720
        $ 1,517,594
2


Portfolio of Investments (unaudited) – continued
Issuer     Shares/Par Value ($)
Municipal Bonds – continued
Port Revenue – 6.8%
Alameda, CA, Corridor Transportation Authority Second Subordinate Lien Rev., “B”, 5%, 10/01/2037   $ 470,000 $ 522,960
Alameda, CA, Corridor Transportation Authority Second Subordinate Lien Rev., “B”, AGM, 5%, 10/01/2036     600,000 678,060
Port of Oakland, CA, Rev., “P”, 5%, 5/01/2033     1,000,000 1,093,690
        $ 2,294,710
Sales & Excise Tax Revenue – 1.2%
California Economic Recovery, “A”, 5%, 7/01/2020 (Prerefunded 7/01/2019)   $ 250,000 $ 261,885
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., “C”, 5%, 8/01/2040 (a)(d)     215,000 122,281
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2042     120,000 26,458
        $ 410,624
Secondary Schools – 2.8%
California School Finance Authority, Charter School Rev. (Aspire Public Schools - Obligated Group), 5%, 8/01/2040   $ 85,000 $ 91,819
California School Finance Authority, Charter School Rev. (Aspire Public Schools - Obligated Group), 5%, 8/01/2045     85,000 91,534
California School Finance Authority, School Facility Rev. (Alliance for College-Ready Public Schools Projects), “A”, 5%, 7/01/2030     255,000 282,601
California School Finance Authority, School Facility Rev. (Kipp LA Projects), “A”, 5%, 7/01/2037     85,000 94,105
California School Finance Authority, School Facility Rev. (Kipp LA Projects), “A”, 5%, 7/01/2047     130,000 142,526
California Statewide Communities Development Authority School Facility Rev. (Alliance for College-Ready Public Schools), “A”, 6.375%, 7/01/2047     230,000 252,986
        $ 955,571
State & Agency - Other – 1.5%
Sacramento County, CA, Public Facilities Project, COP, AMBAC, 4.75%, 10/01/2027   $ 500,000 $ 501,365
State & Local Agencies – 14.1%
California Public Works Board Lease Rev. (Department of Corrections), “E”, AGM, 3%, 10/01/2036   $ 415,000 $ 387,361
California Public Works Board Lease Rev. (Judicial Council Projects), “A”, 5%, 3/01/2028     380,000 427,983
California Public Works Board Lease Rev. (New Stockton Courthouse), “B”, 5%, 10/01/2033     275,000 310,948
Los Angeles County, CA, Schools Regionalized Business Service Corp., Pooled Financing, Capital Appreciation, “A”, AMBAC, 0%, 8/01/2018     2,020,000 2,006,547
Los Angeles County, CA, Schools Regionalized Business Service Corp., Pooled Financing, Capital Appreciation, “A”, AMBAC, 0%, 8/01/2023     1,220,000 1,055,117
Los Angeles, CA, Municipal Improvement Corp. Lease Rev., “B”, ASSD GTY, 5.5%, 4/01/2030 (Prerefunded 4/01/2019)     390,000 407,386
Ontario Public Finance Authority Lease Rev. , AGM, 5%, 11/01/2042     160,000 182,344
        $ 4,777,686
Tax - Other – 1.5%
Puerto Rico Convention Center District Authority, Hotel Occupancy Tax Rev., “A”, AMBAC, 5%, 7/01/2031   $ 90,000 $ 85,061
Puerto Rico Infrastructure Financing Authority Special Tax Rev., “C”, AMBAC, 5.5%, 7/01/2024     120,000 122,560
Puerto Rico Infrastructure Financing Authority Special Tax Rev., “C”, AMBAC, 5.5%, 7/01/2026     80,000 81,220
Puerto Rico Infrastructure Financing Authority Special Tax Rev., “C”, AMBAC, 5.5%, 7/01/2027     210,000 212,425
        $ 501,266
Tax Assessment – 7.1%
Huntington Park, CA, Public Financing Authority Rev., “A”, AGM, 5.25%, 9/01/2019   $ 500,000 $ 501,430
North Natomas, CA, Community Facilities District Special Tax, “4-E”, 5.25%, 9/01/2033     160,000 178,462
Riverside County, CA, Jurupa Valley Redevelopment Project Rev., “B”, AGM, 5%, 10/01/2030     190,000 219,209
Riverside County, CA, Jurupa Valley Redevelopment Project Rev., “B”, AGM, 5%, 10/01/2031     225,000 256,450
Riverside County, CA, Redevelopment Agency, Tax Allocation, “A”, AGM, 5%, 10/01/2034     295,000 332,804
San Dieguito, CA, Public Facilities Authority, ''A'', AMBAC, 5%, 8/01/2032     500,000 506,640
San Francisco, CA, City & County Redevelopment Successor Agency, Community Facilities District No. 6 (Mission Bay South Public Improvements), “A”, 5%, 8/01/2033     130,000 142,531
San Francisco, CA, City & County Redevelopment Successor Agency, Tax Allocation (Mission Bay South Redevelopment Project), “A”, 5%, 8/01/2043     250,000 278,045
        $ 2,415,571
3


Portfolio of Investments (unaudited) – continued
Issuer     Shares/Par Value ($)
Municipal Bonds – continued
Tobacco – 4.9%
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., “A”, 5.75%, 6/01/2047   $ 675,000 $ 680,056
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., “A-1”, 5.125%, 6/01/2047     1,000,000 993,010
        $ 1,673,066
Toll Roads – 3.1%
Bay Area Toll Authority, California Toll Bridge Rev., “S-7”, 4%, 4/01/2033   $ 515,000 $ 551,431
Bay Area Toll Authority, California Toll Bridge Rev., “S-7”, 4%, 4/01/2034     145,000 154,664
Riverside County, CA, Transportation Commission, Toll Rev., “A”, 5.75%, 6/01/2044     320,000 355,843
        $ 1,061,938
Transportation - Special Tax – 2.5%
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “D”, AGM, 5%, 7/01/2032   $ 55,000 $ 55,056
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “J”, NATL, 5%, 7/01/2029     10,000 9,438
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “L”, AMBAC, 5.25%, 7/01/2038     345,000 322,485
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “L”, NATL, 5.25%, 7/01/2035     30,000 27,539
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “N”, NATL, 5.25%, 7/01/2032     35,000 32,854
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “N”, NATL, 5.25%, 7/01/2033     25,000 23,282
Commonwealth of Puerto Rico Highway & Transportation Authority Unrefunded Rev., “A”, NATL, 5%, 7/01/2038     10,000 8,730
San Francisco, CA, Municipal Transportation Agency Rev., “B”, 5%, 3/01/2037     335,000 369,220
        $ 848,604
Universities - Colleges – 7.6%
California Educational Facilities Authority Rev. (Loma Linda University), “A”, 5%, 4/01/2036   $ 75,000 $ 84,806
California Educational Facilities Authority Rev. (Loma Linda University), “A”, 5%, 4/01/2037     235,000 265,137
California Educational Facilities Authority Rev. (Stanford University), “U-7”, 5%, 6/01/2046     235,000 303,413
California Educational Facilities Authority Rev. (University of San Francisco), 6.125%, 10/01/2030 (Prerefunded 10/01/2021)     140,000 161,165
California Educational Facilities Authority Rev. (University of San Francisco), 6.125%, 10/01/2030     145,000 166,868
California Municipal Finance Authority Rev. (Azusa Pacific University Project), “B”, 5%, 4/01/2035     345,000 376,588
California Public Works Board Lease Rev. (The Regents of the University of California), 5%, 12/01/2028 (Prerefunded 12/01/2021)     375,000 420,169
California State University Rev., “A”, 5%, 11/01/2024     370,000 412,069
California State University Rev., “A”, 5%, 11/01/2030     270,000 314,250
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Educational Facilities Rev. (University Plaza Project), NATL, 5%, 7/01/2033     75,000 67,977
        $ 2,572,442
Universities - Dormitories – 0.8%
California Municipal Finance Authority, Student Housing Rev. (Bowles Hall Foundation) “A”, 5%, 6/01/2035   $ 25,000 $ 27,147
California Statewide Communities Development Authority Rev. (Lancer Plaza Project), 5.875%, 11/01/2043     230,000 255,834
        $ 282,981
Utilities - Cogeneration – 0.7%
California Pollution Control Financing Authority, Water Furnishing Rev. (Poseidon Resources Desalination Project), 5%, 11/21/2045   $ 150,000 $ 159,519
California Pollution Control Financing Authority, Water Furnishing Rev. (San Diego County Water Desalination Project Pipeline), 5%, 11/21/2045     75,000 76,383
        $ 235,902
Utilities - Municipal Owned – 7.5%
California Department of Water Resources, Power Supply Rev., “L”, 5%, 5/01/2019   $ 305,000 $ 317,953
Guam Power Authority Rev., “A”, AGM, 5%, 10/01/2039     50,000 53,821
Guam Power Authority Rev., “A”, AGM, 5%, 10/01/2044     55,000 58,970
Northern California Power Agency, Capital Facilities Rev., “A”, 5.25%, 8/01/2024     390,000 416,337
Puerto Rico Electric Power Authority Rev., “DDD”, AGM, 3.625%, 7/01/2023     10,000 9,920
Puerto Rico Electric Power Authority Rev., “DDD”, AGM, 3.65%, 7/01/2024     55,000 54,231
Puerto Rico Electric Power Authority Rev., “SS”, ASSD GTY , 4.375%, 7/01/2030     5,000 4,979
Puerto Rico Electric Power Authority Rev., “UU”, ASSD GTY , 4.25%, 7/01/2027     40,000 40,002
Puerto Rico Electric Power Authority Rev., “VV”, NATL, 5.25%, 7/01/2032     5,000 4,693
Sacramento, CA, Municipal Utility District Electric Rev., “U”, AGM, 5%, 8/15/2019 (Prerefunded 8/15/2018)     290,000 294,933
Sacramento, CA, Municipal Utility District Electric Rev., “X”, 5%, 8/15/2025 (Prerefunded 8/15/2021)     95,000 105,166
Sacramento, CA, Municipal Utility District Electric Rev., Unrefunded Balance, “U”, AGM, 5%, 8/15/2019     460,000 467,549
4


Portfolio of Investments (unaudited) – continued
Issuer     Shares/Par Value ($)
Municipal Bonds – continued
Utilities - Municipal Owned – continued
Sacramento, CA, Municipal Utility District Electric Rev., Unrefunded Balance, “X”, 5%, 8/15/2025   $ 275,000 $ 305,110
Vernon, CA, Electric System Rev., “A”, 5.5%, 8/01/2041     370,000 406,841
        $ 2,540,505
Utilities - Other – 3.0%
California M-S-R Energy Authority Gas Rev., “A”, 6.5%, 11/01/2039   $ 245,000 $ 340,248
Southern California Public Power Authority (Natural Gas Project No. 1), “A”, 5%, 11/01/2033     585,000 686,995
        $ 1,027,243
Water & Sewer Utility Revenue – 12.0%
Atwater, CA, Public Financing Authority Wastewater Rev., ASSD GTY, 5%, 5/01/2034   $ 500,000 $ 521,055
California Department of Water Resources Rev. (Central Valley Project Water System), “AE”, 5%, 12/01/2028 (Prerefunded 6/01/2018)     480,000 484,541
California Department of Water Resources Rev., Unrefunded Balance, 5%, 12/01/2028 (Prerefunded 6/01/2018)     20,000 20,189
Escondido, CA, Joint Powers Financing Authority Rev. (Water System Financing), 5%, 9/01/2041     460,000 500,926
Guam Waterworks Authority Rev. (Water and Wastewater System), 5%, 7/01/2036     20,000 21,619
Guam Waterworks Authority Rev. (Water and Wastewater System), 5%, 1/01/2046     105,000 112,263
Guam Waterworks Authority Rev. (Water and Wastewater System), “A”, 5%, 7/01/2029     105,000 114,105
Guam Waterworks Authority Rev. (Water and Wastewater System), “A”, 5%, 7/01/2035     105,000 112,373
Madera, CA, Financing Authority, Irrigation Rev., 6.5%, 1/01/2040 (Prerefunded 1/01/2020)     440,000 479,230
Norco, CA, Financing Authority, Enterprise Rev., AGM, 5.625%, 10/01/2039     215,000 227,754
Oxnard, CA, Financing Authority, Wastewater Rev., AGM, 5%, 6/01/2030     340,000 381,963
Oxnard, CA, Financing Authority, Wastewater Rev., AGM, 5%, 6/01/2031     85,000 95,232
Soquel Creek, CA, Water District, COP, 5%, 3/01/2043     370,000 409,350
Tulare, CA, Sewer Rev., AGM, 5%, 11/15/2031     350,000 403,529
Tulare, CA, Sewer Rev., AGM, 5%, 11/15/2035     170,000 193,096
        $ 4,077,225
Total Municipal Bonds   $57,183,576
Investment Companies (h) – 2.3%
Money Market Funds – 2.3%  
MFS Institutional Money Market Portfolio, 1.52% (v)     779,858 $ 779,780
Other Assets, Less Liabilities – 1.1%   371,593
Variable Rate Municipal Term Preferred Shares (VMTPS), at liquidation value of $24,425,000 net of unamortized debt issuance costs of $24,232 (issued by the fund) – (71.9)%   (24,400,768)
Net assets applicable to common shares – 100.0% $33,934,181
(a) Non-income producing security.      
(d) In default.      
(h) An affiliated issuer may be considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. At period end, the aggregate values of the fund's investments in affiliated issuers and in unaffiliated issuers were $779,780 and $57,183,576, respectively.      
(v) Affiliated issuer that is available only to investment companies managed by MFS. The rate quoted for the MFS Institutional Money Market Portfolio is the annualized seven-day yield of the fund at period end.      
The following abbreviations are used in this report and are defined:
AGM Assured Guaranty Municipal
AMBAC AMBAC Indemnity Corp.
ASSD GTY Assured Guaranty Insurance Co.
BAM Build America Mutual
BHAC Berkshire Hathaway Assurance Corp.
CALHF California Health Facility Construction Loan Insurance Program
COP Certificate of Participation
NATL National Public Finance Guarantee Corp.
    
5


Portfolio of Investments (unaudited) – continued
Derivative Contracts at 2/28/18
Futures Contracts
Description Long/
Short
Currency Contracts Notional
Amount
Expiration
Date
Value/Unrealized
Appreciation
(Depreciation)
Asset Derivatives
Interest Rate Futures
U.S. Treasury Note 10 yr Short USD 19 $2,280,891 June – 2018 $ 1,292
Liability Derivatives
Interest Rate Futures
U.S. Treasury Bond 30 yr Short USD 8 $1,147,500 June – 2018 $(1,379)
At February 28, 2018, the fund had cash collateral of $38,050 to cover any collateral or margin obligations for securities sold short and certain derivative contracts.
See attached supplemental information. For more information see notes to financial statements as disclosed in the most recent semiannual or annual report.
6


Supplemental Information
2/28/18 (unaudited)
The fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services - Investment Companies.
(1) Investment Valuations
Debt instruments and floating rate loans, including restricted debt instruments, are generally valued at an evaluated or composite bid as provided by a third-party pricing service.  Short-term instruments with a maturity at issuance of 60 days or less may be valued at amortized cost, which approximates market value. Futures contracts are generally valued at last posted settlement price on their primary exchange as provided by a third-party pricing service. Futures contracts for which there were no trades that day for a particular position are generally valued at the closing bid quotation on their primary exchange as provided by a third-party pricing service. Open-end investment companies are generally valued at net asset value per share. Securities and other assets generally valued on the basis of information from a third-party pricing service may also be valued at a broker/dealer bid quotation. Values obtained from third-party pricing services can utilize both transaction data and market information such as yield, quality, coupon rate, maturity, type of issue, trading characteristics, and other market data.
The Board of Trustees has delegated primary responsibility for determining or causing to be determined the value of the fund’s investments (including any fair valuation) to the adviser pursuant to valuation policies and procedures approved by the Board. If the adviser determines that reliable market quotations are not readily available, investments are valued at fair value as determined in good faith by the adviser in accordance with such procedures under the oversight of the Board of Trustees. Under the fund’s valuation policies and procedures, market quotations are not considered to be readily available for most types of debt instruments and floating rate loans and many types of derivatives. These investments are generally valued at fair value based on information from third-party pricing services. In addition, investments may be valued at fair value if the adviser determines that an investment’s value has been materially affected by events occurring after the close of the exchange or market on which the investment is principally traded (such as foreign exchange or market) and prior to the determination of the fund’s net asset value, or after the halting of trading of a specific security where trading does not resume prior to the close of the exchange or market on which the security is principally traded. The adviser generally relies on third-party pricing services or other information (such as the correlation with price movements of similar securities in the same or other markets; the type, cost and investment characteristics of the security; the business and financial condition of the issuer; and trading and other market data) to assist in determining whether to fair value and at what value to fair value an investment. The value of an investment for purposes of calculating the fund’s net asset value can differ depending on the source and method used to determine value. When fair valuation is used, the value of an investment used to determine the fund’s net asset value may differ from quoted or published prices for the same investment. There can be no assurance that the fund could obtain the fair value assigned to an investment if it were to sell the investment at the same time at which the fund determines its net asset value per share.
Various inputs are used in determining the value of the fund's assets or liabilities. These inputs are categorized into three broad levels. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fund's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment. Level 1 includes unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 includes other significant observable market-based inputs (including quoted prices for similar securities, interest rates, prepayment speed, and credit risk). Level 3 includes unobservable inputs, which may include the adviser's own assumptions in determining the fair value of investments. Other financial instruments are derivative instruments, such as futures contracts. The following is a summary of the levels used as of February 28, 2018 in valuing the fund's assets or liabilities:
Financial Instruments Level 1 Level 2 Level 3 Total
Municipal Bonds $— $57,183,576 $— $57,183,576
Mutual Funds 779,780 779,780
Total $779,780 $57,183,576 $— $57,963,356
Other Financial Instruments        
Futures Contracts - Assets $1,292 $— $— $1,292
Futures Contracts - Liabilities (1,379) (1,379)
For further information regarding security characteristics, see the Portfolio of Investments.
7


Supplemental Information (unaudited) – continued
(2) Investments in Affiliated Issuers
An affiliated issuer may be considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. For the purposes of this report, the fund assumes the following to be affiliated issuers:
Affiliated Issuers Beginning
Shares/Par
Amount
Acquisitions
Shares/Par
Amount
Dispositions
Shares/Par
Amount
Ending
Shares/Par
Amount
MFS Institutional Money Market Portfolio 435,550 2,277,971 (1,933,663) 779,858
Affiliated Issuers Realized
Gain (Loss)
Change in
Unrealized
Appreciation
(Depreciation)
Capital Gain
Distributions
Dividend
Income
Ending
Value
MFS Institutional Money Market Portfolio $(89) $20 $— $3,816 $779,780
    
(3) Jurisdiction Weightings
Issuer country weighting percentages of portfolio holdings based on net assets, as of February 28, 2018, are as follows:
California 94.3%
Puerto Rico 2.9%
New York 1.0%
Guam 0.8%
The jurisdiction weighting percentages include both accrued interest amounts and equivalent exposure from any derivatives holdings, if applicable.
8


ITEM 2. CONTROLS AND PROCEDURES.

 

(a) Based upon their evaluation of the effectiveness of the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)) as conducted within 90 days of the filing date of this Form N-Q, the registrant’s principal financial officer and principal executive 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 controls over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

ITEM 3. EXHIBITS.

File as exhibits as part of this Form a separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2): Attached hereto.


Notice

A copy of the Agreement and Declaration of Trust, as amended, of the Registrant is on file with the Secretary of State of The Commonwealth of Massachusetts and notice is hereby given that this instrument is executed on behalf of the Registrant by an officer of the Registrant as an officer and not individually and the obligations of or arising out of this instrument are not binding upon any of the Trustees or shareholders individually, but are binding only upon the assets and property of the respective constituent series of the Registrant.


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.

Registrant: MFS CALIFORNIA MUNICIPAL FUND

 

By (Signature and Title)*    DAVID L. DILORENZO
  David L. DiLorenzo, President

Date: April 13, 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 (Signature and Title)*    DAVID L. DILORENZO
  David L. DiLorenzo, President (Principal Executive Officer)

Date: April 13, 2018

 

By (Signature and Title)*    JAMES O. YOST
  James O. Yost, Treasurer (Principal Financial Officer and Accounting Officer)

Date: April 13, 2018

 

* Print name and title of each signing officer under his or her signature.