Tax-Exempt Fund of California
American Funds Tax Exempt Series II / CA · 6 share classes
Fund classification
Classified from what the fund holds · as of 2026 Q2
Tax-Exempt Fund of California is an actively managed U.S. bond fund.
- Asset class
- Bonds
- Region
- United States
- Management
- Actively managed
- Fund type
- Open-end fund
- Credit quality
- Mixed credit
- Rate sensitivity
- Intermediate duration
Fund profile
As filed in the prospectus · 2025 Q3
The funds primary investment objective is to provide you with a high level of current income exempt from regular federal and California state income taxes.
The fund invests primarily in municipal bonds issued by California and its agencies, seeking securities rated BBB- or better that are exempt from federal and California income taxes, with up to 20% allocated to private activity bonds subject to federal alternative minimum tax and up to 10% in below-investment-grade securities. Multiple portfolio managers oversee distinct segments of the portfolio, selecting securities based on the adviser's judgment of long-term value and selling when they no longer appear attractively priced. Because the fund's returns depend on the investment adviser's security selection decisions, performance will diverge from any benchmark.
| Share class | Expense ratio |
|---|---|
| TAFTX | 0.56% |
| TECCX | 1.31% |
| TECFX | 0.66% |
| TEFEX | 0.40% |
| EXCAX | 0.29% |
| TTCAX | 0.54% |
Portfolio turnover 32.00% · as of 2025 Q3
Allocation
Asset groups · long / short shown separately, never netted · 2026 Q2
| Bonds | 99.59% |
| Securitized | 0.03% |
| Stocks | 0.00% |
| Derivatives | -0.00% |
The outer band is exposure held short — written against the portfolio rather than part of it, which is why it sits outside the ring and why the two are never netted into one figure.
Derivatives are shown at market value, not notional exposure.
Latest quarter
What changed since the fund's previous filing
Largest new: BAY AREA TOLL AUTHORITY ×2, CALIFORNIA ST MUNI FIN AUTH, CENTRAL VALLEY ENERGY AUTH CALIF, CALIFORNIA COMMUNITY CHOICE FINANCING AUTHORITY, LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY SALES TAX REVENUE, SANTA MONICA-MALIBU UNI SCH DIST CALIF, CALIFORNIA STATE PUBLIC WORKS BOARD
Largest exited: UNIVERSITY OF CALIFORNIA, SAN FRANCISCO CALIF CITY & CNTY PUB UTILS COMMN WTR REV, SANTA MONICA-MALIBU UNI SCH DIST CALIF ×2, CALIFORNIA STATE UNIVERSITY, CALIFORNIA INFRASTRUCTURE & ECONOMIC DEVELOPMENT BANK, LOS ANGELES DEPARTMENT OF AIRPORTS LOS ANGELES INTERNATIONAL AIR, LOS ANGELES CALIF DEPARTMENT OF WATER & POWER
Return profile
Total return as filed — price change plus distributions reinvested · trailing figures to Apr 2026
| Share class | 1-year | 3-year | 5-year | Vol | Worst fall |
|---|---|---|---|---|---|
| +5.89% | +11.42% | +4.76% | 4.41% | -5.12% | |
| +5.10% | +8.91% | +0.87% | 4.42% | -5.30% | |
| +5.79% | +11.10% | +4.26% | 4.42% | -5.15% | |
| +6.07% | +12.02% | +5.71% | 4.42% | -5.08% | |
| +6.18% | +12.36% | +6.21% | 4.41% | -5.06% | |
| +6.18% | +12.34% | +6.19% | 4.42% | -5.06% |
These classes hold the same portfolio, so the 5.34pp spread over 5 years is the cost difference between them — roughly 1.07pp a year — not a difference in what they own.
Debt profile
What this fund holds — value-weighted across its bond and securitized long positions · as of 2026-04-30
Share of the fund's debt by how its coupon behaves — the fact that decides whether a rate move reaches this portfolio at all.
| Fixed rate | 93.9% |
| Floating rate | 6.1% |
Share of the fund's debt value in each maturity band, shortest first.
| <1y | 1.4% |
| 1-3y | 2.2% |
| 3-5y | 3.2% |
| 5-10y | 17.2% |
| 10y+ | 75.9% |
These three overlap — one holding can be in arrears and paying in kind at once — so they are shown separately and never summed.
Risk profile
Interest-rate and credit-spread sensitivity, both in years · as of 2026Q2
More of this fund’s sensitivity sits in credit spreads than in interest rates — a rate rally that comes with a credit selloff works against it.
Where the loss would come from. The two shocks are the same size, so this is the balance of the fund's two sensitivities rather than a bet on one moving more.
| Credit spreads | 53% |
| Interest rates | 47% |
Filers report the impact of a 0.01% move only, so the total is our own scaling of that one number and overstates the loss on most bonds — read it as approximate, never as precise. The two sensitivities overlap rather than add up: they measure the same positions against different shocks, which is why the durations above are shown side by side and never summed.
Share of the fund's spread duration carried by each credit tier.
| Investment grade | +4.24 yr |
| High yield | +2.12 yr |
Share of duration at each point, shortest first. A positive figure loses value when spreads widen; a negative one offsets — a credit hedge.
| 3 mo | 0.05 yr | 1% |
| 1 yr | 0.38 yr | 7% |
| 5 yr | 1.39 yr | 24% |
| 10 yr | 2.72 yr | 47% |
| 30 yr | 1.19 yr | 21% |
| 3 mo | 0.03 yr | 0% |
| 1 yr | 0.36 yr | 6% |
| 5 yr | 1.60 yr | 25% |
| 10 yr | 3.20 yr | 50% |
| 30 yr | 1.19 yr | 19% |
The two bands measure the same positions against different shocks and do not add — a Treasury carries rate duration and no spread duration, a floating-rate credit the reverse. Rate tenors are also summed across every currency the fund discloses.
Show the numbers
| Tenor | Rate yrs | IG yrs | HY yrs | IG $/bp | HY $/bp |
|---|---|---|---|---|---|
| 3 mo | +0.05 | +0.02 | +0.01 | $6.8k | $3.8k |
| 1 yr | +0.38 | +0.24 | +0.12 | $87.1k | $43.3k |
| 5 yr | +1.39 | +1.15 | +0.44 | $418.2k | $160.9k |
| 10 yr | +2.72 | +2.19 | +1.01 | $793.6k | $364.2k |
| 30 yr | +1.19 | +0.64 | +0.55 | $232.5k | $197.6k |
Dollar change per 1bp of spread movement, as filed and sign-anchored. A blank cell was not filed; a zero was.
Holdings
By % of NAV · equity positions carry filed share counts · every resolvable issuer links to its company page
| Ticker | Issuer | %NAV | Value | Shares |
|---|---|---|---|---|
| — | CALIFORNIA COMMUNITY CHOICE FINANCING AUTHORITY5.00% · due 2055-12-01 | 1.14% | $41.15M | — |
| — | CALIFORNIA HOUSING FINANCE AGENCY4.00% · due 2033-03-20 | 0.85% | $30.79M | — |
| — | CALIFORNIA COMMUNITY CHOICE FINANCING AUTHORITY5.00% · due 2054-05-01 | 0.85% | $30.69M | — |
| — | CALIFORNIA STATEWIDE CMNTYS DEV AUTH5.00% · due 2035-10-01 | 0.81% | $29.48M | — |
| — | CALIFORNIA COMMUNITY CHOICE FINANCING AUTHORITY5.00% · due 2056-04-01 | 0.79% | $28.49M | — |
| — | CALIFORNIA HOUSING FINANCE AGENCY3.50% · due 2035-11-20 | 0.65% | $23.51M | — |
| — | CALIFORNIA COMMUNITY CHOICE FINANCING AUTHORITY5.00% · due 2056-10-01 | 0.64% | $23.29M | — |
| — | CALIFORNIA COMMUNITY CHOICE FINANCING AUTHORITY4.00% · due 2052-02-01 | 0.64% | $23.25M | — |
| — | CALIFORNIA COMMUNITY CHOICE FINANCING AUTHORITY5.00% · due 2055-02-01 | 0.64% | $23.15M | — |
| — | BAY AREA TOLL AUTHORITY3.00% floating · due 2059-04-01 | 0.64% | $23.14M | — |
Top 10 positions are 7.64% of net assets, top 25 15.55%, across 317 issuers.
See more of this fund's book
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