UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

**FORM N-Q**

**QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED**

**MANAGEMENT INVESTMENT COMPANY**

**_______________________________**

Investment Company Act file number  811-5076

Tax-Exempt California Money Market Fund

(Exact name of registrant as specified in charter)

 

345 Park Avenue

New York, NY  10154

(Address of principal executive offices)             (Zip code)

 

Paul Schubert

345 Park Avenue

New York, NY  10154-0004

(Name and address of agent for service)

Registrant's telephone number, including area code:  (212) 454-7190

Date of fiscal year end:  09/30

Date of reporting period: 6/30/09

 

ITEM 1.  SCHEDULE OF INVESTMENTS

 

| Investment Portfolio | **as of June 30, 2009  (Unaudited)** |
|----------------------|--------------------------------------|

 

**Tax-Exempt California Money Market Fund**

 

|   | **Principal****Amount ($)** |   | **Value ($)** |  
 

**Municipal Investments 99.8%**

 
**California**

 
Alameda County, CA, Industrial Development Authority Revenue, Autumn Press, Inc. Project, AMT, 0.5% *, 11/1/2029, Wells Fargo Bank NA (a) 

 

1,852,000

 

1,852,000

 
Alameda County, CA, Industrial Development Authority Revenue, BEMA Electronic Manufacturing, Inc. Project, Series A, AMT, 0.75% *, 4/1/2034, Comerica Bank (a) 

 

3,200,000

 

3,200,000

 
Alameda County, CA, Industrial Development Authority Revenue, Caravan Trading Co., AMT, 0.75% *, 4/1/2014, Comerica Bank (a) 

 

2,350,000

 

2,350,000

 
Alameda County, CA, Industrial Development Authority Revenue, Essai, Inc. Project, AMT, 0.65% *, 8/1/2035, Comerica Bank (a) 

 

4,250,000

 

4,250,000

 
Alameda County, CA, Industrial Development Authority Revenue, White Brothers Project, AMT, 0.75% *, 3/1/2032, Comerica Bank (a) 

 

2,480,000

 

2,480,000

 
California, ABAG Finance Authority for NonProfit Corps., Multi-Family Housing Revenue, Arbors Apartments, Series A, 0.25% *, 12/15/2032 

 

2,650,000

 

2,650,000

 
California, Bay Area Toll Authority, Toll Bridge Revenue, Series B, 1.1% *, 4/1/2039 

 

1,175,000

 

1,175,000

 
 

 

 

California, Clipper Tax-Exempt Certificate Trust, Series 2007-38, 144A, 0.45% *, 5/15/2030 

 

20,000,000

 

20,000,000

California, Housing Finance Agency Revenue, Multi-Family Housing:

 
 

Series C, AMT, 1.0% *, 2/1/2037 

 

1,975,000 

 

1,975,000 

 

Series C, AMT, 1.0% *, 8/1/2037 

 

2,575,000 

 

2,575,000 

 

Series C, AMT, 1.8% *, 2/1/2033 

 

9,500,000 

 

9,500,000 

California, Housing Finance Agency Revenue, Multi-Family Housing, Mission Apartments, Series A, 0.23% *, 4/1/2041 

 

4,620,000

 

4,620,000

California, Las Virgenes Unified School District, Series 2008-3044X, 144A, 0.45% *, 8/1/2031 (b) 

 

6,500,000

 

6,500,000

California, Municipal Finance Authority, Multi-Family Housing Revenue, Series 2410, 144A, AMT, 0.5% *, 1/1/2020, JPMorgan Chase Bank (a) 

 

4,930,000

 

4,930,000

California, School Cash Reserve Program, Certificates of Participation, Series A, 3.0%, 7/6/2009, US Bank NA (a) 

 

4,555,000

 

4,555,929

California, State Department of Water Resources, Power Supply Revenue, Series C-1, 0.6% *, 5/1/2022, Dexia Credit Local (a) 

 

5,000,000

 

5,000,000

California, State University Revenue, Series 2008-3014X, 144A, 0.45% *, 11/1/2039 (b) 

 

6,050,000

 

6,050,000

California, Statewide Communities Development, Series 2114, 144A, AMT, 0.4% *, 9/1/2046 

 

5,000,000

 

5,000,000

California, Statewide Communities Development Authority Revenue, Series 2089, 144A,   0.29% *, 10/1/2036 

 

8,215,000

 

8,215,000

California, Statewide Communities Development Authority Revenue, Retirement Housing Foundation, 0.22% *, 9/1/2030, KBC Bank NV (a) 

 

4,000,000

 

4,000,000

California, Statewide Communities Development Authority, Certificates of Participation,  0.25% *, 2/1/2028, Union Bank of CA (a) 

 

1,580,000

 

1,580,000

California, Statewide Communities Development Authority, Multi-Family Housing Revenue:

 
 

Series 2680, 144A, 0.45% *, 5/15/2018, JPMorgan Chase Bank (a) 

 

11,000,000 

 

11,000,000 

 

Series 2681, 144A, AMT, 0.6% *, 5/15/2018, JPMorgan Chase Bank (a) 

 

6,190,000 

 

6,190,000 

California, University of California Revenues, Series 2169, 144A, 0.35% *, 5/15/2031 (b) 

 

5,435,000

 

5,435,000

Contra Costa County, CA, Multi-Family Housing Revenue, Camara Circle Apartments, Series A, AMT, 0.51% *, 12/1/2032, Citibank NA (a) 

 

1,875,000

 

1,875,000

Fresno, CA, Water System Revenue, Municipal Securities Trust Receipts, SGA 153, "A", 144A, 0.39% *, 6/1/2024, Societe Generale (a) 

 

4,700,000

 

4,700,000

Hayward, CA, Multi-Family Housing Revenue, Timbers Apartments, Series A, AMT, 0.34% *, 3/15/2033 

 

2,200,000

 

2,200,000

Los Angeles County, CA, Multi-Family Housing Authority Revenue, Canyon Country Villas Project, Series H, 0.25% *, 12/1/2032 

 

5,800,000

 

5,800,000

Los Angeles County, CA, Multi-Family Mortgage Revenue, Valencia Housing Project, Series C, 0.2% *, 4/1/2031 

 

3,500,000

 

3,500,000

Los Angeles, CA, Department of Water & Power Revenue, Power Systems, Series A-3, 0.2% *, 7/1/2035 

 

15,100,000

 

15,100,000

Novato, CA, Multi-Family Revenue, Senior Housing Project, 0.3% *, 10/1/2032, Bank of the West (a) 

 

2,085,000

 

2,085,000

Orange County, CA, 1.35%, 7/7/2009 

 

5,000,000

 

5,000,000

Orange County, CA, Water District, 0.75%, 7/8/2009 

 

1,450,000

 

1,450,000

Richmond, CA, Wastewater Revenue, Series A, 0.23% *, 8/1/2037, Union Bank of CA NA (a) 

 

4,000,000

 

4,000,000

San Bernardino County, CA, Multi-Family Housing Revenue, Series A, 0.31% *, 7/1/2014 

 

2,350,000

 

2,350,000

San Diego County, CA, Water Authority, 1.25%, 7/23/2009 

 

2,000,000

 

2,000,000

San Diego, CA, Certificates of Participation, 0.55% *, 12/1/2028, Comerica Bank (a) 

 

1,825,000

 

1,825,000

San Diego, CA, RBC Municipal Products, Inc. Trust, Series E-3, 144A, AMT, 0.4% *, 9/1/2037, Royal Bank of Canada (a) 

 

4,495,000

 

4,495,000

San Francisco, CA, City & County Multi-Family Housing Revenue, Series 34G, 144A,     0.27% *, 12/1/2018 

 

11,000,000

 

11,000,000

Santa Clara, CA, Electric Revenue, Series B, 0.55% *, 7/1/2027, Dexia Credit Local Bank (a) 

 

5,000,000

 

5,000,000

Tustin, CA, Unified School District, Series 2007-336, 144A, 0.95% *, 9/1/2011, Bank of America NA (a) 

 

4,860,000

 

4,860,000

 

 

 

 

**% of****Net Assets**

 

**Value ($)**

 
**Total Investment Portfolio** (Cost $202,322,929) †

99.8

 

**202,322,929**

 
**Other Assets and Liabilities, Net**

0.2

 

**463,554**

 
**Net Assets**

100.0

 

**202,786,483**

 
*For information on the Fund's policies regarding the valuation of investments and other significant accounting policies, please refer to the Fund's most recent semi-annual or annual financial statements.*

 
***

*Variable rate demand notes are securities whose interest rates are reset periodically at market levels.  These securities are often payable on demand and are shown at their current rates as of June 30, 2009.*

 
*†*

*The cost for federal income tax purposes was $202,322,929.*

 
*(a)*

*Security incorporates a letter of credit from the bank listed.*

 
*(b)*

*Bond is insured by one of these companies:*

 
**Insurance Coverage**

**As a % of Total****Investment Portfolio**

 
Financial Security Assurance, Inc.

8.9

 
*Many insurers who have traditionally guaranteed payment of municipal issues have been downgraded by the major rating agencies.  As a result, most insured issues are now trading on the basis of the underlying credits.*

 
*144A: Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.*

 
*AMT: Subject to alternative minimum tax.*

 
 

***Fair Value Measurements***

 

*Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements," as amended, establishes a three-tier hierarchy for measuring fair value and requires additional disclosure about the classification of fair value measurements.*

 

*Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, and credit risk). Level 3 includes significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments). The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.  Most securities held by a money market fund are reflected as Level 2 because the securities are valued at amortized cost (which approximates fair value) and, accordingly, the inputs used to determine value are not quoted prices in an active market.*

 

*The following is a summary of the inputs used as of June30, 2009 in valuing the Fund's investments:*

 

**Level 1**

**Level 2**

**Level 3**

**Assets**

 

 

 

Municipal Investments

$                                -   

$            202,322,929  

$                                -   

**Total**

**$                                -**

**$            202,322,929**

**$                                -**

 

 

 

 

 

 

**ITEM 2.**

**CONTROLS AND PROCEDURES**

 

 

 

(a)          The Chief Executive and Financial Officers concluded that the Registrant’s Disclosure Controls and Procedures are effective based on the evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report.

 

 

 

(b)          There have been no changes in the registrant’s internal control over financial reporting that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal controls over financial reporting.

 

 

 

 

 

**ITEM 3.**

**EXHIBITS**

 

 

 

Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT.

 

**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:

Tax-Exempt California Money Market Fund, a series of Tax-Exempt California Money Market Fund

 

 

By:

/s/Michael G. Clark

Michael G. Clark

President

 

 

Date:

August 17, 2009

 

 

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.

 

Registrant:

Tax-Exempt California Money Market Fund, a series of Tax-Exempt California Money Market Fund

 

 

By:

/s/Michael G. Clark

Michael G. Clark

President

 

 

Date:

August 17, 2009

 

 

 

 

 

 

By:

/s/Paul Schubert

Paul Schubert

Chief Financial Officer and Treasurer

 

 

Date:

August 17, 2009

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