Edgar Filing: MFS CALIFORNIA MUNICIPAL FUND

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 811-9537

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)

Susan S. Newton

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: August 31, 2014

ITEM 1.

SCHEDULE OF INVESTMENTS.

QUARTERLY REPORT

August 31, 2014

LOGO

MFS® CALIFORNIA MUNICIPAL FUND

LOGO

PORTFOLIO OF INVESTMENTS

8/31/14 (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 - 168.4%
Airport Revenue - 9.0%
Los Angeles, CA, Department of Airports Rev. (Los Angeles International), “C”, BHAC, 5.25%, 5/15/38	$	750,000	$	824,037
Orange County, CA, Airport Rev., “A”, 5%, 7/01/31		190,000		213,112
San Diego County, CA, Regional Airport Authority Rev., “A”, 5%, 7/01/21		500,000		585,375
San Diego County, CA, Regional Airport Authority Rev., “A”, 5%, 7/01/43		500,000		552,100
San Francisco, CA, City & County Airports Commission, International Airport Rev., “A”, 5%, 5/01/30		285,000		316,929
San Francisco, CA, City & County Airports Commission, International Airport Rev., “A”, 5%, 5/01/31		150,000		164,678
San Jose, CA, Airport Rev., “A-2”, 5.25%, 3/01/34		440,000		485,175

			$	3,141,406
General Obligations - General Purpose - 10.9%
Los Angeles County, CA, Regional Financing Authority Rev. (Montecedro Inc. Project), “A”, CALHF, 5%, 11/15/44	$	300,000	$	328,233
State of California, AMBAC, 6%, 2/01/17		1,000,000		1,132,530
State of California, 5%, 11/01/21		515,000		627,914
State of California, 5.25%, 4/01/35		455,000		525,898
State of California, 5.5%, 3/01/40		630,000		721,898
State of California, 5.25%, 11/01/40		415,000		475,922

			$	3,812,395
General Obligations - Schools - 27.8%
Alhambra, CA, Unified School District, “B”, ASSD GTY, 5.25%, 8/01/28	$	500,000	$	575,600
Banning, CA, Unified School District (Election of 2006), “B”, ASSD GTY, 5.25%, 8/01/33		500,000		545,815
Beaumont, CA, Unified School District (Election of 2008), Capital Appreciation, “C”, AGM, 0%, 8/01/40		955,000		277,332
Chabot-Las Positas, CA, Community College (Election of 2004), “B”, AMBAC, 5%, 8/01/30		60,000		64,834
Folsom Cordova, CA, Unified School District (Election of 2012), “A”, 5%, 10/01/38		535,000		594,722
Huntington Beach, CA, Union High School District (Orange County), 5%, 8/01/21		235,000		286,369
Lake Tahoe, CA, Unified School District (Election of 2008), Capital Appreciation, AGM, 0%, 8/01/45		515,000		263,124
Montebello, CA, Unified School District (Election of 2004), “A-1”, ASSD GTY, 5.25%, 8/01/34		355,000		398,775
Napa Valley, CA, Unified School District, 5%, 8/01/20		225,000		266,846
Peralta, CA, Community College District, AGM, 5%, 8/01/16		500,000		544,180
Pittsburg, CA, Unified School District, “B”, AGM, 5.5%, 8/01/34		500,000		558,675
Pomona, CA, Unified School District, “A”, NATL, 6.55%, 8/01/29		1,000,000		1,366,310
San Diego, CA, Community College (Election of 2002), 5.25%, 8/01/33		125,000		142,269
San Diego, CA, Unified School District (Election of 2008), Capital Appreciation, “G”, 0%, 7/01/34		265,000		102,881
San Joaquin, CA, Delta Community College District (Election of 2004), “B”, Capital Appreciation, AGM, 0%, 8/01/18		400,000		374,536
San Jose, CA, Evergreen Community College District (Election of 2010), “A”, 5%, 8/01/41		265,000		296,320
Santee, CA, School District (Election of 2006), Capital Appreciation, “D”, ASSD GTY, 0%, 8/01/43		765,000		182,468
Vallejo City, CA, Unified School District, “A”, NATL, 5.9%, 8/01/25		500,000		561,940
Victor, CA, Elementary School District (Election of 2008), “A”, ASSD GTY, 5.125%, 8/01/34		500,000		560,015
Washington, CA, Yolo County Unified School District (New High School Project), 5%, 8/01/21		450,000		484,907
West Contra Costa, CA, Unified School District, “A”, NATL, 5.7%, 2/01/23		500,000		628,850
West Covina, CA, Unified School District, “A”, NATL, 5.8%, 2/01/21		500,000		597,940

			$	9,674,708
Healthcare Revenue - Hospitals - 24.3%
ABAG Finance Authority for Non-Profit Corps., CA, Rev. (Sharp Healthcare), 6.25%, 8/01/39	$	505,000	$	589,663
ABAG Finance Authority for Non-Profit Corps., CA, Rev. (Sharp Healthcare), “A”, 5%, 8/01/26		110,000		126,484
California Health Facilities Financing Authority Rev. (Cedars-Sinai Medical Center), 5%, 11/15/34		250,000		260,643
California Health Facilities Financing Authority Rev. (Memorial Health Services), “A”, 5%, 10/01/33		295,000		332,070
California Health Facilities Financing Authority Rev. (Scripps Health), “A”, 5%, 11/15/32		525,000		592,132
California Health Facilities Financing Authority Rev. (Scripps Health), “A”, 5%, 11/15/40		255,000		279,138
California Health Facilities Financing Authority Rev. (Sutter Health), “B”, 5.875%, 8/15/31		500,000		601,900
California Municipal Finance Authority, COP (Community Hospitals of Central California), 5.25%, 2/01/27		250,000		259,485

Portfolio of Investments (unaudited) – continued


Issuer	Shares/Par		Value ($)

Municipal Bonds - continued
Healthcare Revenue - Hospitals - continued
California Statewide Communities Development Authority Rev. (Adventist), ASSD GTY, 5%, 3/01/37	$	500,000	$	526,095
California Statewide Communities Development Authority Rev. (Catholic Healthcare West), “K”, ASSD GTY, 5.5%, 7/01/41		1,000,000		1,085,000
California Statewide Communities Development Authority Rev. (Enloe Medical Center), “A”, CALHF, 5.5%, 8/15/23		500,000		568,950
California Statewide Communities Development Authority Rev. (Huntington Memorial Hospital), 5%, 7/01/35		535,000		548,097
California Statewide Communities Development Authority Rev. (Kaiser Permanente), “A”, 5%, 4/01/42		455,000		500,059
California Statewide Communities Development Authority Rev. (Santa Ynez Valley Cottage Hospital), 5.25%, 11/01/30		260,000		294,221
California Statewide Communities Development Authority Rev. (Sutter Health), “A”, 5%, 8/15/32		610,000		696,614
California Statewide Communities Development Authority Rev. (Trinity Health Corp.), 5%, 12/01/41		450,000		496,458
Santa Clara County, CA, Financing Authority Rev. (El Camino Hospital), AMBAC, 5.125%, 2/01/41		400,000		417,812
Upland, CA, COP (San Antonio Community Hospital), 6.375%, 1/01/32		250,000		287,695

			$	8,462,516
Healthcare Revenue - Long Term Care - 2.1%
ABAG Finance Authority for Non-Profit Corps., CA, Rev. (Episcopal Senior Communities), 6.125%, 7/01/41	$	150,000	$	167,819
ABAG Finance Authority for Non-Profit Corps., CA, Rev. (Eskaton Properties, Inc.), 5%, 11/15/35		230,000		236,994
California Statewide Communities Development Authority Rev. (Episcopal Communities & Services for Seniors Obligated Group), 5%, 5/15/47		315,000		329,720

			$	734,533
Industrial Revenue - Other - 1.7%
Liberty, NY, Development Corp. Rev. (Goldman Sachs Headquarters), 5.25%, 10/01/35	$	485,000	$	580,045

Miscellaneous Revenue - Other - 2.9%
ABAG Finance Authority for Non-Profit Corps., CA, Rev. (Jackson Lab), 5%, 7/01/37	$	400,000	$	429,964
ABAG Finance Authority for Non-Profit Corps., CA, Rev. (Jackson Lab), 5.75%, 7/01/37 (Prerefunded 7/01/15)		385,000		410,560
California Infrastructure & Economic Development Bank Rev. (Walt Disney Family Museum), 5.25%, 2/01/33		160,000		171,792

			$	1,012,316
Port Revenue - 4.1%
Alameda Corridor Transportation Authority, California Rev., “A”, AGM, 5%, 10/01/28	$	305,000	$	353,666
Port of Oakland, CA, Rev., “P”, 5%, 5/01/33		1,000,000		1,090,140

			$	1,443,806
Sales & Excise Tax Revenue - 2.2%
California Economic Recovery, “A”, 5%, 7/01/20	$	250,000	$	296,468
Los Angeles County, CA, Metropolitan Transportation Authority Sales Tax Rev., “A”, 5%, 7/01/20		250,000		302,193
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., “C”, 5%, 8/01/40		50,000		41,198
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., “C”, 5.25%, 8/01/40		165,000		140,219

			$	780,078
Single Family Housing - Other - 1.2%
California Department of Veterans Affairs, Home Purchase Rev., “A”, 4.5%, 12/01/28	$	385,000	$	402,976

Single Family Housing - State - 3.3%
California Housing Finance Agency Rev. (Home Mortgage), “E”, 4.75%, 2/01/30	$	305,000	$	308,166
California Housing Finance Agency Rev. (Home Mortgage), “K”, 5.3%, 8/01/23		190,000		195,396
California Housing Finance Agency Rev. (Home Mortgage), “L”, 5.45%, 8/01/33		555,000		571,733
California Housing Finance Agency Rev. (Home Mortgage), “L”, FNMA, 5.5%, 8/01/38		80,000		82,346

			$	1,157,641
State & Agency - Other - 1.4%
Sacramento County, CA, Public Facilities Project, COP, AMBAC, 4.75%, 10/01/27	$	500,000	$	500,095

State & Local Agencies - 17.9%
California Public Works Board Lease Rev. (Judicial Council Projects), “A”, 5%, 3/01/28	$	380,000	$	442,168
California Public Works Board Lease Rev. (New Stockton Courthouse), “B”, 5%, 10/01/33		275,000		317,081
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., FGIC, 5%, 6/01/35		255,000		261,495

Portfolio of Investments (unaudited) – continued


Issuer	Shares/Par		Value ($)

Municipal Bonds - continued
State & Local Agencies - continued
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., BHAC, 5%, 6/01/38	$	1,000,000	$	1,022,620
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., Enhanced, “A”, FGIC, 5%, 6/01/38		1,000,000		1,022,690
Los Angeles County, CA, Schools Regionalized Business Service Corp., Pooled Financing, Capital Appreciation, “A”, AMBAC, 0%, 8/01/18		2,020,000		1,846,583
Los Angeles County, CA, Schools Regionalized Business Service Corp., Pooled Financing, Capital Appreciation, “A”, AMBAC, 0%, 8/01/23		1,220,000		867,847
Los Angeles, CA, Municipal Improvement Corp. Lease Rev., “B”, ASSD GTY, 5.5%, 4/01/30		390,000		444,257

			$	6,224,741
Tax Assessment - 9.6%
Fontana, CA, Public Finance Authority, Tax Allocation Rev. (Sub Lien North Fontana Redevelopment), “A”, AMBAC, 5%, 10/01/29	$	1,000,000	$	1,013,340
Huntington Park, CA, Public Financing Authority Rev., “A”, AGM, 5.25%, 9/01/19		500,000		511,255
Irvine, CA, Limited Obligation Improvement (Reassessment District #12-1), 4%, 9/02/22		115,000		126,032
Irvine, CA, Limited Obligation Improvement (Reassessment District #12-1), 5%, 9/02/23		60,000		69,118
North Natomas, CA, Community Facilities District Special Tax, “4-E”, 5.25%, 9/01/33		160,000		174,602
San Diego, CA, Redevelopment Agency, Tax Allocation (Centre City), “A”, AMBAC, 5.25%, 9/01/25		500,000		518,450
San Dieguito, CA, Public Facilities Authority, “A”, AMBAC, 5%, 8/01/32		500,000		513,900
San Francisco, CA, City & County Redevelopment Successor Agency, Community Facilities District No. 6 (Mission Bay South Public Improvements), “A”, 5%, 8/01/33		130,000		138,281
San Francisco, CA, City & County Redevelopment Successor Agency, Tax Allocation (Mission Bay South Public Improvements), “A”, 5%, 8/01/43		250,000		271,343

			$	3,336,321
Tobacco - 3.8%
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., “A-1”, 5.125%, 6/01/47	$	1,000,000	$	743,080
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., “A-1”, 5.75%, 6/01/47		715,000		585,127

			$	1,328,207
Toll Roads - 3.6%
Riverside County, CA, Transportation Commission, Toll Rev., “A”, 5.75%, 6/01/44	$	320,000	$	361,200
San Francisco, CA, Bay Area Toll Authority, Bridge Rev., “B”, 1.5%, 4/01/47 (Put Date 4/02/18)		895,000		905,794

			$	1,266,994
Transportation - Special Tax - 2.5%
Commonwealth of Puerto Rico Highway & Transportation Authority, Highway Rev., “Y”, AGM, 5.5%, 7/01/36 (Prerefunded 7/01/16)	$	450,000	$	492,989
San Francisco, CA, Municipal Transportation Agency Rev., “B”, 5%, 3/01/37		335,000		373,234

			$	866,223
Universities - Colleges - 7.1%
California Educational Facilities Authority Rev. (Dominican University of California), 5%, 12/01/25	$	120,000	$	124,393
California Educational Facilities Authority Rev. (University of San Francisco), 6.125%, 10/01/30		285,000		345,229
California Public Works Board Lease Rev. (The Regents of the University of California), 5%, 12/01/28		375,000		462,424
California State University Rev., “A”, 5%, 11/01/24		370,000		439,878
California Statewide Communities Development Authority Rev. (Lancer Plaza Project), 5.875%, 11/01/43		230,000		232,330
University Enterprises, Inc. (Auxiliary Organization), “A”, FGIC, 4.375%, 10/01/30		500,000		502,725
University of California Regents Medical Center Pooled Rev. “J”, 5%, 5/15/19		325,000		381,726

			$	2,488,705
Universities - Secondary Schools - 0.7%
California Statewide Communities Development Authority, School Facility Rev. (Alliance for College-Ready Public Schools), “A”, 6.375%, 7/01/47	$	230,000	$	231,562

Utilities - Cogeneration - 0.7%
California Pollution Control Financing Authority, Water Furnishing Rev. (Poseidon Resources Desalination Project), 5%, 11/21/45	$	150,000	$	156,906
California Pollution Control Financing Authority, Water Furnishing Rev. (San Diego County Water Desalination Project Pipeline), 5%, 11/21/45		75,000		76,598

			$	233,504

Portfolio of Investments (unaudited) – continued


Issuer	Shares/Par		Value ($)

Municipal Bonds - continued
Utilities - Municipal Owned - 9.6%
California Department of Water Resources, Power Supply Rev., “L”, 5%, 5/01/19	$	805,000	$	953,611
California Department of Water Resources, Power Supply Rev., “N”, 5%, 5/01/20		205,000		247,240
Northern California Power Agency, Capital Facilities Rev., “A”, 5.25%, 8/01/24		390,000		437,635
Sacramento, CA, Municipal Utility District Rev., “U”, AGM, 5%, 8/15/19		750,000		870,248
Sacramento, CA, Municipal Utility District Rev., “X”, 5%, 8/15/25		370,000		433,281
Vernon, CA, Electric System Rev., “A”, 5.5%, 8/01/41		370,000		409,942

			$	3,351,957
Utilities - Other - 2.8%
California M-S-R Energy Authority Gas Rev., “A”, 6.5%, 11/01/39	$	245,000	$	329,197
Southern California Public Power Authority (Natural Gas Project No. 1), “A”, 5%, 11/01/33		585,000		642,892

			$	972,089
Water & Sewer Utility Revenue - 19.2%
Atwater, CA, Public Financing Authority Wastewater Rev., ASSD GTY, 5%, 5/01/34	$	500,000	$	513,965
California Department of Water Resources Rev. (Central Valley Project Water System), “AE”, 5%, 12/01/28		500,000		572,470
California Department of Water Resources Rev. (Central Valley Project Water System), “AM”, 5%, 12/01/24		500,000		616,130
Chino Basin, CA, Regional Financing Authority Rev. (Inland Empire Utilities Agency), “A”, AMBAC, 5%, 11/01/38		1,000,000		1,087,190
Escondido, CA, Joint Powers Financing Authority Rev. (Water System Financing), 5%, 9/01/41		460,000		497,251
Government of Guam, Waterworks Authority Rev., “A”, 5%, 7/01/29		105,000		114,794
Government of Guam, Waterworks Authority Rev., “A”, 5%, 7/01/35		105,000		113,102
Madera, CA, Irrigation Financing Authority Rev., 6.5%, 1/01/40		440,000		517,616
Norco, CA, Financing Authority Enterprise Rev., AGM, 5.625%, 10/01/39		215,000		237,330
Ontario, CA, Public Financing Authority Water Rev., 4%, 7/01/18		250,000		277,080
Orange County, CA, Sanitation District Wastewater Rev., “A”, 5%, 2/01/22		870,000		1,075,859
Sonoma County, CA, Water Agency Rev., “A”, AGM, 5%, 7/01/36		600,000		639,672
Soquel Creek, CA, Water District, COP, 5%, 3/01/43		370,000		407,895

			$	6,670,354
Total Municipal Bonds			$	58,673,172

Money Market Funds - 0.0%
MFS Institutional Money Market Portfolio, 0.9%, at Net Asset Value (v)		26	$	26
Total Investments			$	58,673,198

Other Assets, Less Liabilities - 1.7%				589,514

VMTPS, at liquidation value (Issued by the Fund) - (70.1)%				(24,425,000	)
Net assets applicable to common shares - 100.0%			$	34,837,712

(v)	Underlying affiliated fund 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:


COP		Certificate of Participation
VMTPS		Variable Rate Municipal Term Preferred Shares


Insurers
AGM		Assured Guaranty Municipal
AMBAC		AMBAC Indemnity Corp.
ASSD GTY		Assured Guaranty Insurance Co.
BHAC		Berkshire Hathaway Assurance Corp.
CALHF		California Health Facility Construction Loan Insurance Program
FGIC		Financial Guaranty Insurance Co.
FNMA		Federal National Mortgage Assn.
NATL		National Public Finance Guarantee Corp.

Portfolio of Investments (unaudited) – continued

Derivative Contracts at 8/31/14

Futures Contracts at 8/31/14


Description	Currency		Contracts		Value	Expiration Date	Unrealized Appreciation (Depreciation)
Liability Derivatives
*Interest Rate Futures*
U.S. Treasury Note 10 yr (Short)		USD		20	$2,515,625	December - 2014		$(2,076	)
U.S. Treasury Bond 30 yr (Short)		USD		4	560,375	December - 2014		(1,549	)

								$(3,625	)

At August 31, 2014, the fund had cash collateral of $34,400 to cover any commitments for certain derivatives contracts.

See attached supplemental information. For more information see notes to financial statements as disclosed in the most recent semiannual or annual report.

Supplemental Information

8/31/14 (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 (other than short-term instruments), 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 generally are valued at amortized cost, which approximates market value. Futures contracts are generally valued at last posted settlement price as provided by a third-party pricing service on the market on which they are primarily traded. Futures contracts for which there were no trades that day for a particular position are generally valued at the closing bid quotation as provided by a third-party pricing service on the market on which such futures contracts are primarily traded. Open-end investment companies are generally valued at net asset value per share. Securities and other assets, including commodity-linked structured notes, 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 not reflected in total investments, such as futures contracts. The following is a summary of the levels used as of August 31, 2014 in valuing the fund’s assets or liabilities:


Investments at Value	Level 1			Level 2		Level 3		Total
Municipal Bonds		$—			$58,673,172		$—		$58,673,172
Mutual Funds		26			—		—		26
Total Investments		$26			$58,673,172		$—		$58,673,198

Other Financial Instruments
Futures Contracts		$(3,625	)		$—		$—		$(3,625	)

For further information regarding security characteristics, see the Portfolio of Investments.

(2) Portfolio Securities

The cost and unrealized appreciation and depreciation in the value of the investments owned by the fund, as computed on a federal income tax basis, are as follows:


Aggregate cost	$54,368,505
Gross unrealized appreciation	4,550,109
Gross unrealized depreciation	(245,416	)
Net unrealized appreciation (depreciation)	$4,304,693

Supplemental Information (unaudited) – continued

The aggregate cost above includes prior fiscal year end tax adjustments, if applicable.

(3) Transactions in Underlying Affiliated Funds – 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 an affiliated issuer:


Underlying Affiliated Fund	Beginning Shares/Par Amount		Acquisitions Shares/Par Amount		Dispositions Shares/Par Amount			Ending Shares/Par Amount
MFS Institutional Money Market Portfolio		384,294		6,018,913		(6,403,181	)		26

Underlying Affiliated Fund	Realized Gain (Loss)		Capital Gain Distributions		Dividend Income			Ending Value
MFS Institutional Money Market Portfolio		$—		$—		$494			$26

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)*		ROBIN A. STELMACH
		Robin A. Stelmach, President

Date: October 16, 2014

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)*

ROBIN A. STELMACH

Robin A. Stelmach, President

(Principal Executive Officer)

Date: October 16, 2014

By (Signature and Title)*

DAVID L. DILORENZO

David L. DiLorenzo, Treasurer

(Principal Financial Officer

and Accounting Officer)

Date: October 16, 2014

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