Tax-Exempt Fund of California
Actively managed U.S. bond fund
As of its 2026 Q2 report, Tax-Exempt Fund of California held 1,780 positions with $3.62B in net assets. Its ten largest holdings made up 7.6% of the fund. The TAFTX share class costs 0.56% a year. Over the 12 months to May 2026, TAFTX returned 6.9%, with dividends reinvested. In 2026 Q3 it added 121 new positions and exited 51.
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.
What you own
| Company | Weight | Value | Shares |
|---|---|---|---|
CALIFORNIA COMMUNITY CHOICE FINANCING AUTHORITY 5.00% · due 2055-12-01 | 1.14% | $41.15M | — |
CALIFORNIA HOUSING FINANCE AGENCY 4.00% · due 2033-03-20 | 0.85% | $30.79M | — |
CALIFORNIA COMMUNITY CHOICE FINANCING AUTHORITY 5.00% · due 2054-05-01 | 0.85% | $30.69M | — |
CALIFORNIA STATEWIDE CMNTYS DEV AUTH 5.00% · due 2035-10-01 | 0.81% | $29.48M | — |
CALIFORNIA COMMUNITY CHOICE FINANCING AUTHORITY 5.00% · due 2056-04-01 | 0.79% | $28.49M | — |
CALIFORNIA HOUSING FINANCE AGENCY 3.50% · due 2035-11-20 | 0.65% | $23.51M | — |
CALIFORNIA COMMUNITY CHOICE FINANCING AUTHORITY 5.00% · due 2056-10-01 | 0.64% | $23.29M | — |
CALIFORNIA COMMUNITY CHOICE FINANCING AUTHORITY 4.00% · due 2052-02-01 | 0.64% | $23.25M | — |
CALIFORNIA COMMUNITY CHOICE FINANCING AUTHORITY 5.00% · due 2055-02-01 | 0.64% | $23.15M | — |
BAY AREA TOLL AUTHORITY 3.00% floating · due 2059-04-01 | 0.64% | $23.14M | — |
The 200 largest of 1,780 holdings, with the share counts as filed, open with a free account.
What the fund is made of
Percentages are of fund net assets. Rounding, liabilities and short positions can make totals differ from 100%.
| 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.
How it has done
TAFTX share class · total returns with dividends reinvested
Volatility over the last 12 months: 4.30%. Past returns are a record, not a forecast.
Jun 2026 and Jul 2026 have been filed since the trailing figures were struck, so they are not in the table above or the curve — every figure here shares one cut-off, which is what makes them comparable with other funds.
The 6 share classes hold the same portfolio
| Share class | Expense ratio | 1 year | 3 years | 5 years | Worst fall |
|---|---|---|---|---|---|
| 0.56% | +6.86% | +12.83% | +4.82% | -5.12% | |
| 1.31% | +6.07% | +10.28% | +0.93% | -5.30% | |
| 0.66% | +6.76% | +12.50% | +4.32% | -5.15% | |
| 0.40% | +7.04% | +13.43% | +5.76% | -5.08% | |
| 0.29% | +7.15% | +13.77% | +6.27% | -5.06% | |
| 0.54% | +7.15% | +13.77% | +6.24% | -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.
Fees & fund details
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
- Expense ratio, by class
- 0.29% – 1.31%· TAFTX 0.56%
- Portfolio turnover
- 32.00% a year · as of 2025 Q3
Turnover is how much of the portfolio was replaced in a year.
Classified from what the fund holds, not from its name · 2026 Q2. The summary is a paraphrase of the prospectus; the objective is verbatim.
What changed this quarter
Positions that entered or left the fund since its previous filing. Positions that were only resized are not listed.
121 new· the largest 7
51 exited· the largest 8
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.
A newer credit-spread reading (2026Q3) is on file. This page holds one quarter across every figure on it, so that one appears here next quarter.
Understand how this fund fits with the rest.
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