UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-22272
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Nuveen California Municipal Value Fund 2
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(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Address of principal executive offices) (Zip code)
Kevin J. McCarthy
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
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Date of fiscal year end: February 28
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Date of reporting period: August 31, 2009
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
LOGO: NUVEEN INVESTMENTS
Closed-End Funds
Nuveen Investments
Municipal Closed-End Funds
IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R)
Semi-Annual Report
August 31, 2009
----------------- ----------------- --------------------
NUVEEN CALIFORNIA NUVEEN CALIFORNIA NUVEEN CALIFORNIA
MUNICIPAL VALUE MUNICIPAL VALUE PERFORMANCE PLUS
FUND, INC. FUND 2 MUNICIPAL FUND, INC.
NCA NCB NCP
--------------------- -------------------- ------------------------
NUVEEN CALIFORNIA NUVEEN CALIFORNIA NUVEEN CALIFORNIA
MUNICIPAL MARKET INVESTMENT QUALITY SELECT QUALITY MUNICIPAL
OPPORTUNITY FUND, INC. MUNICIPAL FUND, INC. FUND, INC.
NCO NQC NVC
------------------------
NUVEEN CALIFORNIA
QUALITY INCOME MUNICIPAL
FUND, INC.
NUC
AUGUST 09
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LOGO: NUVEEN INVESTMENTS
Chairman's Letter to Shareholders
[PHOTO OF ROBERT P. BREMNER]
DEAR SHAREHOLDER,
The financial markets in which your Fund operates continue to reflect the larger
economic crosscurrents. The illiquidity that infected global credit markets over
the last year appears to be slowly but steadily receding. The major institutions
that are the linchpin of the international financial system are strengthening
their capital structures, but many still struggle with losses in their various
portfolios. There are encouraging signs of recovery in European and Asian
economies, while the U.S. economy continues to feel the impact of job losses and
an over-borrowed consumer. Global trends include modestly increasing trade and
increased concern about the ability of the U.S. government to address its
substantial budgetary deficits. Identifying those developments that will define
the future is never easy, but rarely is it more difficult than at present.
After considerable volatility in the first few months of 2009, both the
fixed-income and equity markets have seen a partial recovery. A fundamental
component of a successful long-term investment program is a commitment to remain
invested during market downturns in order to be better positioned to benefit
from any recovery. Another component is to re-evaluate investment disciplines
and tactics and to confirm their validity following periods of extreme
volatility and market dislocation, such as we have recently experienced. Your
Board carried out an intensive review of investment performance with these
objectives in mind during April and May of this year as part of the annual
management contract renewal process. I encourage you to read the description of
this process in the Annual Investment Management Agreement Approval Process
section of this report.
Remaining invested through market downturns and reconfirming the appropriateness
of a long term investment strategy is as important for our shareholders as it is
for professional investment managers. For that reason, I again encourage you to
remain in communication with your financial consultant on these subjects. For
recent developments on all your Nuveen Funds, please visit the Nuveen web site:
www.nuveen.com.
Nuveen remains committed to resolving the issues connected with outstanding
auction rate preferred shares. In September 2009, Nuveen completed the
refinancing at par of all the outstanding auction rate preferred shares issued
by its taxable closed-end funds. For a variety of reasons, refinancing the
remaining outstanding preferred shares issued by the municipal closed-end funds
is taking longer but Nuveen is diligently pursuing a range of options to
accomplish this. Please consult the Nuveen web site for the most recent
information about the redemption of municipal auction rate preferred shares.
On behalf of the other members of your Fund's Board, we look forward to
continuing to earn your trust in the months and years ahead.
Sincerely,
/s/ Robert P. Bremner
----------------------
Robert P. Bremner
Chairman of the Board
October 20, 2009
Nuveen Investments 1
Portfolio Manager's Comments
Nuveen California Municipal Value Fund, Inc. (NCA)
Nuveen California Municipal Value Fund 2 (NCB)
Nuveen California Performance Plus Municipal Fund, Inc. (NCP)
Nuveen California Municipal Market Opportunity Fund, Inc. (NCO)
Nuveen California Investment Quality Municipal Fund, Inc. (NQC)
Nuveen California Select Quality Municipal Fund, Inc. (NVC)
Nuveen California Quality Income Municipal Fund, Inc. (NUC)
Portfolio manager Scott Romans examines key investment strategies and the
six-month performance of the Nuveen California Municipal Funds. Scott, who
joined Nuveen in 2000, has managed NCA, NCP, NCO, NQC, NVC and NUC since 2003.
In April 2009, he added portfolio management responsibility for the newly
introduced Nuveen California Municipal Value Fund 2 (NCB).
WHAT KEY STRATEGIES WERE USED TO MANAGE THE CALIFORNIA FUNDS DURING THE
SIX-MONTH PERIOD ENDED AUGUST 31, 2009?
During this reporting period, municipal bond prices generally rose, as strong
cash flows into municipal bond funds combined with tighter new issue supply to
provide favorable supply and demand conditions.
Given the restricted supply during the period, investment activity in these
California Funds was more limited than usual. One reason for the supply
reduction was the introduction of the Build America Bond program. Build America
Bonds are a new class of taxable municipal debt created as part of the February
2009 economic stimulus package. They provide municipal issuers with a federal
subsidy equal to 35% of the security's interest payments, and therefore offer
issuers an attractive alternative to traditional tax-exempt debt. As of August
31, 2009, approximately 20% of new bonds issued in the municipal market have
been issued as taxable Build America Bonds, which has reduced the supply of
traditional tax-exempt municipal bond issuance. Since interest payments from
these bonds represent taxable income, we don't see them as good opportunities
for the Funds. Another factor dampening activity was limited liquidity of many
insured bonds because of concerns about the financial health of the insurers.
When purchase opportunities did arise, we continued to focus on relative value
by taking a bottom-up approach to discover undervalued sectors and individual
credits with the potential to perform well over the long term. In some cases, we
were able to add lower-rated and non-rated credits that we believed offered
value at historically very attractive prices.
CERTAIN STATEMENTS IN THIS REPORT ARE FORWARD-LOOKING STATEMENTS. DISCUSSIONS OF
SPECIFIC INVESTMENTS ARE FOR ILLUSTRATION ONLY AND ARE NOT INTENDED AS
RECOMMENDATIONS OF INDIVIDUAL INVESTMENTS. THE FORWARD-LOOKING STATEMENTS AND
OTHER VIEWS EXPRESSED HEREIN ARE THOSE OF THE PORTFOLIO MANAGER AS OF THE DATE
OF THIS REPORT. ACTUAL FUTURE RESULTS OR OCCURRENCES MAY DIFFER SIGNIFICANTLY
FROM THOSE ANTICIPATED IN ANY FORWARD-LOOKING STATEMENTS AND THE VIEWS EXPRESSED
HEREIN ARE SUBJECT TO CHANGE AT ANY TIME, DUE TO NUMEROUS MARKET AND OTHER
FACTORS. THE FUNDS DISCLAIM ANY OBLIGATION TO UPDATE PUBLICLY OR REVISE ANY
FORWARD-LOOKING STATEMENTS OR VIEWS EXPRESSED HEREIN.
2 Nuveen Investments
Cash for new purchases during this period was generated largely by bond calls.
During the spring of 2009, some of the Funds also sold positions in California
general obligation (GO) bonds prior to the credit problems experienced by the
state during the summer.
In April 2009, we introduced the Nuveen California Municipal Value Fund 2 (NCB),
which--like NCA--is an unleveraged Fund investing in a diversified portfolio of
tax-exempt municipal obligations. NCB is designed to invest at least 80% of its
assets in investment quality municipal securities and may invest up to 20% of
its assets in bonds rated below investment quality or judged to be of comparable
quality. During the period between NCB's inception and August 31, 2009, we
focused on completing the Fund's initial investment phase. By period end, NCB
was fully invested and had met or exceeded all of its targeted objectives in
terms of credit quality and diversification.
We continued to use inverse floating rate securities(1) in all of these Funds.
We employ inverse floaters for a variety of reasons, including duration(2)
management, income enhancement, and as a form of financial leverage. As of
August 31, 2009, the inverse floaters remained in place in all of these Funds.
HOW DID THE FUNDS PERFORM?
Individual results for these Funds, as well as relevant index and peer group
information, are presented in the accompanying table.
AVERAGE ANNUAL TOTAL RETURNS ON COMMON SHARE NET ASSET VALUE*
FOR PERIODS ENDED 8/31/09
SIX-MONTH 1-YEAR 5-YEAR 10-YEAR
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NCA(3) 7.06% 2.00% 3.43% 4.88%
NCB(3) 7.97%** N/A N/A N/A
NCP 9.60% 1.10% 2.89% 5.19%
NCO 8.43% 1.01% 2.77% 5.12%
NQC 9.64% 1.19% 2.95% 5.29%
NVC 10.76% 2.91% 3.52% 5.68%
NUC 8.52% 2.08% 3.92% 5.54%
Standard & Poor's (S&P) CA Municipal Bond Index(4) 5.77% 3.47% 3.84% 5.19%
Lipper CA Municipal Debt Funds Average(5) 11.10% -2.15% 2.58% 5.14%
Standard & Poor's (S&P) National Municipal Bond Index(6) 6.49% 4.68% 4.00% 5.30%
Barclays Capital Municipal Bond Index(7) 5.61% 5.67% 4.16% 5.40%
--------------------------------------------------------------------------------------------------------------------
For the six months ended August 31, 2009, cumulative returns on common share net
asset value (NAV) for all seven funds exceeded the returns on the national and
state municipal bond and Barclays indexes, and underperformed the Lipper
California Municipal Debt Funds Average.
Key management factors that influenced the Funds' returns during this period
included duration and yield curve positioning, credit exposure and sector
allocations. In addition, leverage was an important factor affecting the Funds'
performances over this period. The primary reason that the return of NCA trailed
the other Funds for the six-month period was that this Fund does not use
leverage. The impact of leverage is discussed in more detail on page 5.
(1) An inverse floating rate security, also known as inverse floaters, is a
financial instrument designed to pay long-term tax-exempt interest at a
rate that varies inversely with a short-term tax-exempt interest rate
index. For the Nuveen Funds, the index typically used is the Securities
Industry and Financial Markets (SIFM) Municipal Swap Index (previously
referred to as the Bond Market Association Index or BMA). Inverse
floaters, including those inverse floating rate securities in which the
Funds invested during the reporting period, are further defined within the
Notes to Financial Statements and Glossary of Terms Used in this Report
sections of this report.
(2) Duration is a measure of a bond's price sensitivity as interest rates
change, with longer duration bonds displaying more sensitivity to these
changes than bonds with shorter durations.
* Six-month returns are cumulative; returns for one-year, five-year and
ten-year are annualized.
** NCB's cumulative return represents the period from its inception on April
28, 2009, through August 31, 2009.
Past performance is not predictive of future results. Current performance
may be higher or lower than the data shown. Returns do not reflect the
deduction of taxes that shareholders may have to pay on Fund distributions
or upon the sale of Fund shares.
For additional information, see the individual Performance Overview for
your Fund in this report.
(3) NCA and NCB are unleveraged Funds; the remaining five Funds in this report
are leveraged.
(4) The Standard & Poor's (S&P) California Municipal Bond Index is an
unleveraged, market value-weighted index designed to measure the
performance of the investment-grade California municipal bond market. This
index does not reflect any initial or on going expenses and is not
available for direct investment.
(5) The Lipper California Municipal Debt Funds Average is calculated using the
returns of all closed-end funds in this category for each period as
follows: Six-months, 24 funds; 1-year, 24 funds; 5-year, 24 funds; and
10-year, 12 funds. Fund and Lipper returns assume reinvestment of
dividends.
(6) The Standard & Poor's (S&P) National Municipal Bond Index is an
unleveraged, market value-weighted index designed to measure the
performance of the investment-grade U.S. municipal bond market. This index
does not reflect any initial or on going expenses and is not available for
direct investment.
(7) The Barclays Capital (formerly Lehman Brothers) Municipal Bond Index is an
unleveraged, unmanaged national index comprising a broad range of
investment-grade municipal bonds. Results for the Barclays Capital index
do not reflect any expenses. An index is not available for direct
investment.
Nuveen Investments 3
As noted, municipal bonds generally performed well over this period. Bonds in
the Barclays Capital Municipal Bond Index with maturities longer than 15 years,
especially those with the longest maturities (22 years or more), benefited the
most in this environment. In general, NCP, NCO, NQC and NVC were all well
positioned for this environment in terms of duration and yield curve
positioning.
The increase in demand for municipal bonds among both institutional and
individual investors, especially for lower-rated credits, was driven by a
variety of factors. These included concerns about possible tax increases, the
need to rebalance portfolio allocations and a growing appetite to assume
additional risk. At the same time, the supply of new municipal paper declined,
and bonds rated BBB or below and non-rated bonds generally outperformed those
rated AAA. All of these Funds benefited by their overweightings of lower-rated
credits when compared with the indexes.
Holdings that generally contributed positively to the Funds' returns included
industrial development revenue (IDR), health care and zero coupon bonds, all of
which outperformed the overall municipal market during this period. In
particular, NVC, which had the largest allocations of IDR and health care bonds
among the six older Funds, benefited from its weightings in these two sectors.
Bonds backed by the 1998 master tobacco settlement agreement also posted strong
returns. As of August 31, 2009, the California Funds' holdings of lower-rated
tobacco bonds ranged from approximately 3% to 5% of total net assets, providing
a meaningful contribution to performance.
Pre-refunded (8) bonds, which often are backed by U.S. Treasury securities and
which, were one of the top performing segments of the municipal bond market over
the past two years, performed especially poorly during this period. This was due
primarily to their shorter effective maturities and higher credit quality. NCP
held the smallest weighting of pre-refunded bonds among these Funds and was thus
the least negatively impacted by these holdings. In addition, NCO was hurt by
its exposure to the transportation sector and to community facilities district
(CFD) bonds, also known as "dirt deals." CFD bonds across the nation did not
perform well due to concerns about the decline of the housing market as well as
weaker demand, particularly from retail buyers.
Additional market segments that lagged the overall municipal market included
resource recovery, water and sewer and GO credits. Although long-dated
California GOs under-performed other bonds with the same effective duration, all
of these Funds were significantly underweighted in California GOs relative to
the California market in general, which helped their absolute and relative
performances. As of August 31, 2009, California GOs were rated Baa1/A/BBB by
Moody's, Standard & Poor's (S&P) and Fitch, respectively. These credit ratings,
which were the lowest of any state, reflected two downgrades by Moody's and
three downgrades by Fitch during this six-month period, most recently in July
2009. On the positive side, Standard & Poor's (S&P), which had lowered its
rating on California GOs in February 2009, reaffirmed its rating of A in August
2009 and removed the state from its negative credit watch list.
(8) Pre-refundings, also known as advance refundings or refinancings, occur
when an issuer sells new bonds and uses the proceeds to fund principal and
interest payments of older existing bonds. This process often results in
lower borrowing costs for bond issuers.
4 Nuveen Investments
IMPACT OF THE FUNDS' CAPITAL STRUCTURES AND LEVERAGE STRATEGIES ON PERFORMANCE
One important factor impacting the returns of these Funds relative to the
comparative indexes was the Funds' use of financial leverage (NCA and NCB are
unleveraged). The Funds use leverage because their managers believe that, over
time, leveraging provides opportunities for additional income and total returns
for common shareholders. However, use of leverage also can expose common
shareholders to additional risk--especially when market conditions are
unfavorable. For example, as the prices of securities held by a Fund declines,
the negative impact of these valuation changes on common share net asset value
and common shareholder total return is magnified by the use of leverage.
Conversely, leverage may enhance common share returns during periods when bond
prices generally are rising.
During this six-month period, leverage had a positive impact on the total return
performance of the Funds that employed this strategy.
RECENT DEVELOPMENTS REGARDING THE FUND'S LEVERAGED CAPITAL STRUCTURE
As noted in the last several shareholder reports, the auction rate preferred
shares issued by many closed-end funds, including these Nuveen Funds, have been
hampered by a lack of liquidity since February 2008. Since that time, more
auction rate preferred shares have been submitted for sale in their regularly
scheduled auctions than there have been offers to buy. In fact, offers to buy
have been almost completely non-existent since late February, 2008. This means
that these auctions have "failed to clear," and that many, or all, of the
auction rate preferred shareholders who wanted to sell their shares in these
auctions were unable to do so. This lack of liquidity in auction rate preferred
shares did not lower the credit quality of these shares, and auction rate
preferred shareholders unable to sell their shares received distributions at the
"maximum rate" applicable to failed auctions, as calculated in accordance with
the pre-established terms of the auction rate preferred shares. In the recent
market, with short-term rates at multi-generational lows, those maximum rates
also have been low.
One continuing implication for common shareholders from the auction failures is
that each Fund's cost of leverage likely has been incrementally higher at times
than it otherwise might have been had the auctions continued to be successful.
As a result, each Fund's common share earnings likely have been incrementally
lower at times than they otherwise might have been.
Nuveen Investments 5
As noted in past shareholder reports, the Funds' Board of Directors/Trustees
authorized a plan to use tender option bonds (TOBs), also known as floating rate
securities, to refinance a portion of the Funds' outstanding auction rate
preferred shares. The amount of TOBs that a Fund may use varies according to the
composition of each Fund's portfolio. Some Funds have a greater ability to use
TOBs than others. As of August 31, 2009, the amounts of auction rate preferred
securities redeemed, at par, by each of the Funds are as shown in the
accompanying table. As noted previously, NCA and NCB are unleveraged Funds.
AUCTION RATE % OF ORIGINAL
PREFERRED SHARES AUCTION RATE
FUND REDEEMED PREFERRED SHARES
--------------------------------------------------------------------------------
NCP $14,825,000 13.99%
NCO $19,225,000 28.27%
NQC $17,075,000 15.25%
NVC $33,975,000 17.70%
NUC $27,775,000 15.01%
--------------------------------------------------------------------------------
The Funds, their Board of Directors/Trustees and Fund Management continue to
work to resolve this situation. Some Funds have issued Variable Rate Demand
Preferred Shares, but these issuances have been limited since it has been
difficult to find liquidity facilities on economically viable terms given the
constrained credit environment. The Funds also have tried to develop other forms
of preferred stock that have longer terms and do not require a Fund to obtain
and pay for the services of an external liquidity provider. However, the Funds
cannot provide any assurance on when the remaining outstanding auction rate
preferred shares might be redeemed.
As of August 31, 2009, 78 Nuveen closed-end municipal funds have redeemed, at
par, a portion of their outstanding auction rate preferred shares. These
redemptions bring the total amount of Nuveen's municipal closed-end funds'
auction rate preferred share redemptions to approximately $2.3 billion of the
original $11 billion outstanding.
For up-to-date information, please visit the Nuveen CEF Auction Rate Preferred
Resource
Center at: http://www.nuveen.com/ResourceCenter/AuctionRatePreferred.aspx.
6 Nuveen Investments
Common Share Dividend and Share Price Information
During the six-month reporting period ended August 31, 2009, NCP, NCO, NQC, NVC
and NUC each had one monthly dividend increase, while the dividend of NCA
remained stable throughout the period. NCB, which was introduced in April 2009,
paid its initial monthly dividend distribution effective June 2009 and
maintained a stable dividend through the remainder of the reporting period.
All of the Funds in this report seek to pay stable dividends at rates that
reflect each Fund's past results and projected future performance. During
certain periods, each Fund may pay dividends at a rate that may be more or less
than the amount of net investment income actually earned by the Fund during the
period. If a Fund has cumulatively earned more than it has paid in dividends, it
holds the excess in reserve as undistributed net investment income (UNII) as
part of the Fund's NAV. Conversely, if a Fund has cumulatively paid dividends in
excess of its earnings, the excess constitutes negative UNII that is likewise
reflected in the Fund's NAV. Each Fund will, over time, pay all of its net
investment income as dividends to shareholders. As of August 31, 2009, all of
the Funds in this report had positive UNII balances for tax purposes, based upon
our best estimate, and positive UNII balances for financial statement purposes.
COMMON SHARE REPURCHASES AND SHARE PRICE INFORMATION
As of August 31, 2009, the following Funds cumulatively repurchased common
shares as shown in the accompanying table. Since the inception of each Fund's
repurchase program, NCA, NCB and NQC have not repurchased any of their
outstanding common shares.
COMMON SHARES % OF OUTSTANDING
FUND REPURCHASED COMMON SHARES
--------------------------------------------------------------------------------
NCP 26,300 0.2%
NCO 24,900 0.3%
NVC 41,400 0.2%
NUC 40,000 0.2%
--------------------------------------------------------------------------------
Nuveen Investments 7
During the six-month reporting period, the following Funds repurchased common
shares at a weighted average price and a weighted average discount per common
share as shown in the accompanying table.
WEIGHTED AVERAGE WEIGHTED AVERAGE
COMMON SHARES PRICE PER SHARE DISCOUNT PER SHARE
FUND REPURCHASED REPURCHASED REPURCHASED
--------------------------------------------------------------------------------
NCP 11,800 $ 10.04 19.69%
NCO 18,300 $ 10.22 19.64%
NVC 21,200 $ 10.23 19.12%
NUC 22,100 $ 10.65 19.10%
--------------------------------------------------------------------------------
As of August 31, 2009, the Funds' common share prices were trading at discounts
to their common share NAVs as shown in the accompanying table.
8/31/09 SIX-MONTH AVERAGE
FUND (-)DISCOUNT (-)DISCOUNT
--------------------------------------------------------------------------------
NCA -1.84% -3.39%
NCB -2.95% -1.56%
NCP -8.04% -13.63%
NCO -7.13% -13.79%
NQC -7.29% -12.79%
NVC -4.47% -10.89%
NUC -3.08% -11.09%
--------------------------------------------------------------------------------
8 Nuveen Investments
NCA Performance OVERVIEW | Nuveen California Municipal Value Fund, Inc. as of
August 31, 2009
CREDIT QUALITY (as a % of total investments)
[PIE CHART]
AAA/U.S. Guaranteed 33%
AA 15%
A 30%
BBB 14%
N/R 8%
2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE(2)
[BAR CHART]
Sep $ 0.038
Oct 0.038
Nov 0.038
Dec 0.038
Jan 0.038
Feb 0.038
Mar 0.038
Apr 0.038
May 0.038
Jun 0.038
Jul 0.038
Aug 0.038
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE CHART]
9/02/08 $ 9.62
9.69
9.62
9.54
9.163
9.31
7.4
8.21
8.61
8.48
8.65
8.4099
7.9399
8.05
7.9
7.67
8.255
8
8.68
8.81
8.8
8.65
8.5
8.73
8.6
8.4
8.3899
8.44
8.35
8.42
8.55
8.69
8.66
8.71
9.02
8.85
9.01
8.93
8.91
8.95
8.67
8.43
8.58
8.48
8.44
8.29
8.48
8.6674
8.95
9.03
9.01
8.97
9.1
8/31/09 9.09
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 9.09
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 9.26
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -1.84%
--------------------------------------------------------------------------------
Market Yield 5.02%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 7.71%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 233,798
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 17.65
--------------------------------------------------------------------------------
Modified Duration 7.71
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 10/07/87)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month
(Cumulative) 11.18% 7.06%
--------------------------------------------------------------------------------
1-Year 1.08% 2.00%
--------------------------------------------------------------------------------
5-Year 5.26% 3.43%
--------------------------------------------------------------------------------
10-Year 5.50% 4.88%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/Limited 29.1%
--------------------------------------------------------------------------------
U.S. Guaranteed 25.7%
--------------------------------------------------------------------------------
Health Care 10.2%
--------------------------------------------------------------------------------
Water and Sewer 7.9%
--------------------------------------------------------------------------------
Utilities 7.0%
--------------------------------------------------------------------------------
Long-Term Care 5.8%
--------------------------------------------------------------------------------
Other 14.3%
--------------------------------------------------------------------------------
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34.9%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(2) The Fund paid shareholders capital gains and net ordinary income
distributions in December 2008 of $0.1290 per share.
Nuveen Investments 9
NCB Performance OVERVIEW | Nuveen California Municipal Value Fund 2 as of August
31, 2009
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 14.80
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 15.25
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -2.95%
--------------------------------------------------------------------------------
Market Yield 5.59%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 8.59%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 50,127
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 24.47
--------------------------------------------------------------------------------
Modified Duration 10.65
--------------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN
(Inception 4/28/09)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
Since Inception 0.11% 7.97%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
Health Care 21.1%
--------------------------------------------------------------------------------
Utilities 13.2%
--------------------------------------------------------------------------------
Water and Sewer 12.3%
--------------------------------------------------------------------------------
Tax Obligation/General 12.1%
--------------------------------------------------------------------------------
Tax Obligation/Limited 11.6%
--------------------------------------------------------------------------------
Housing/Single Family 10.4%
--------------------------------------------------------------------------------
Education and Civic Organizations 9.9%
--------------------------------------------------------------------------------
Consumer Staples 5.0%
--------------------------------------------------------------------------------
Other 4.4%
--------------------------------------------------------------------------------
CREDIT QUALITY (as a % of total investments)
[PIE CHART]
AAA/U.S. Guaranteed 11%
AA 30%
A 46%
BBB 12%
N/R 1%
2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE
[BAR CHART]
Jan $ 0.069
Jul 0.069
Aug 0.069
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE CHART]
5/01/09 $ 14.95
15
14.9
15.02
14.8
14.85
14.87
14
13.25
13.4
13.57
14.3
14.08
14.2375
14.35
13.94
14.33
14.57
8/31/09 14.8
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34.9%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
10 Nuveen Investments
NCP Performance OVERVIEW | Nuveen California Performance Plus Municipal Fund,
Inc. as of August 31, 2009
CREDIT QUALITY (as a % of total investments)
[PIE CHART]
AAA/U.S. Guaranteed 25%
AA 24%
A 34%
BBB 11%
BB or Lower 1%
N/R 5%
2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE(2)
[BAR CHART]
Sep $ 0.058
Oct 0.058
Nov 0.058
Dec 0.058
Jan 0.058
Feb 0.058
Mar 0.06
Apr 0.06
May 0.0655
Jun 0.0655
Jul 0.0655
Aug 0.0655
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE CHART]
9/02/08 $ 12.69
12.81
12.56
11.84
11.12
10.63
7.36
9.21
10.45
10.46
10.38
9.69
8.58
9.07
8.71
7.86
8.61
8.87
9.4308
10.944
10.33
10.585
10.56
10.75
11.19
10.24
10.87
10.05
10.119
10.21
10.25
10.41
10.34
10.56
10.9699
11.09
11.18
11.236
11.28
11.57
11.49
11.19
11.3128
11.23
11.11
11.05
11.4
11.53
11.81
11.92
11.84
12.04
12.26
8/31/09 12.36
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 12.36
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 13.44
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -8.04%
--------------------------------------------------------------------------------
Market Yield 6.36%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 9.77%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 173,903
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 16.01
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 11.54
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/15/89)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month
(Cumulative) 17.57% 9.60%
--------------------------------------------------------------------------------
1-Year 5.15% 1.10%
--------------------------------------------------------------------------------
5-Year 3.50% 2.89%
--------------------------------------------------------------------------------
10-Year 3.28% 5.19%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/Limited 23.2%
--------------------------------------------------------------------------------
Transportation 18.1%
--------------------------------------------------------------------------------
Tax Obligation/General 11.6%
--------------------------------------------------------------------------------
Water and Sewer 9.8%
--------------------------------------------------------------------------------
U.S. Guaranteed 8.4%
--------------------------------------------------------------------------------
Utilities 7.5%
--------------------------------------------------------------------------------
Health Care 7.5%
--------------------------------------------------------------------------------
Education and Civic Organizations 6.7%
--------------------------------------------------------------------------------
Other 7.2%
--------------------------------------------------------------------------------
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34.9%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(2) The Fund paid shareholders a capital gains distribution in December 2008
of $0.0870 per share.
Nuveen Investments 11
NCO Performance OVERVIEW | Nuveen California Municipal Market Opportunity Fund,
Inc. as of August 31, 2009
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 12.63
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 13.60
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -7.13%
--------------------------------------------------------------------------------
Market Yield 6.41%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 9.85%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 110,766
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 16.31
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 11.42
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 5/17/90)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month
(Cumulative) 21.30% 8.43%
--------------------------------------------------------------------------------
1-Year 5.73% 1.01%
--------------------------------------------------------------------------------
5-Year 3.37% 2.77%
--------------------------------------------------------------------------------
10-Year 3.39% 5.12%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/Limited 17.7%
--------------------------------------------------------------------------------
Transportation 17.5%
--------------------------------------------------------------------------------
U.S. Guaranteed 15.6%
--------------------------------------------------------------------------------
Water and Sewer 14.6%
--------------------------------------------------------------------------------
Tax Obligation/General 11.8%
--------------------------------------------------------------------------------
Health Care 10.7%
--------------------------------------------------------------------------------
Other 12.1%
--------------------------------------------------------------------------------
CREDIT QUALITY (as a % of total investments)
[PIE CHART]
AAA/U.S. Guaranteed 29%
AA 20%
A 28%
BBB 10%
BB or Lower 1%
N/R 12%
2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE(2)
[BAR CHART]
Sep $ 0.0585
Oct 0.0585
Nov 0.0585
Dec 0.0585
Jan 0.0585
Feb 0.0585
Mar 0.0615
Apr 0.0615
May 0.0675
Jun 0.0675
Jul 0.0675
Aug 0.0675
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE CHART]
9/02/08 $ 12.9
12.96
12.79
12.01
11.22
11
7.85
9.191
10.75
10.3601
10.84
10.12
9.27
9.65
8.6
7.88
8.86
9.15
9.73
11.1
10.38
10.44
10.6
10.75
11.0901
10.06
10.77
10.23
10.43
10.28
10.37
10.5
10.75
10.9488
11.0656
11.3
11.61
11.5
11.4989
11.74
11.48
11.21
11.18
11.29
11.21
11.59
11.69
11.9001
12.17
12.31
12.37
12.54
12.63
8/31/09 12.63
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34.9%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(2) The Fund paid shareholders capital gains and net ordinary income
distributions in December 2008 of $0.0464 per share.
12 Nuveen Investments
NQC Performance OVERVIEW | Nuveen California Investment Quality Municipal Fund,
Inc. as of August 31, 2009
CREDIT QUALITY (as a % of total investments)
[PIE CHART]
AAA/U.S. Guaranteed 24%
AA 22%
A 41%
BBB 11%
BB or Lower 1%
N/R 1%
2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE(2)
[BAR CHART]
Sep $ 0.0605
Oct 0.0605
Nov 0.0605
Dec 0.0605
Jan 0.0605
Feb 0.0605
Mar 0.062
Apr 0.062
May 0.0685
Jun 0.0685
Jul 0.0685
Aug 0.0685
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE CHART]
9/02/08 $ 13.14
13.05
13.07
12.58
12.24
11.15
7.62
9.95
10.83
10.86
10.85
10.35
8.96
9.34
8.75
7.74
8.85
9.42
10.46
11.1
10.58
10.38
10.78
11.04
11.33
10.51
11.09
10.01
10.03
10.19
10.36
10.4
10.36
10.69
11.22
11.21
11.65
11.46
11.5099
11.73
11.5
11.38
11.23
11.25
11.18
11.3
11.3601
11.63
11.93
11.91
12.1
12.23
12.43
8/31/09 12.47
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 12.47
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 13.45
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -7.29%
--------------------------------------------------------------------------------
Market Yield 6.59%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 10.12%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 182,682
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 16.72
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 11.20
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/20/90)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month
(Cumulative) 16.37% 9.64%
--------------------------------------------------------------------------------
1-Year 4.04% 1.19%
--------------------------------------------------------------------------------
5-Year 3.06% 2.95%
--------------------------------------------------------------------------------
10-Year 3.88% 5.29%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/Limited 26.9%
--------------------------------------------------------------------------------
Transportation 19.5%
--------------------------------------------------------------------------------
U.S. Guaranteed 14.5%
--------------------------------------------------------------------------------
Education and Civic Organizations 10.0%
--------------------------------------------------------------------------------
Health Care 8.1%
--------------------------------------------------------------------------------
Tax Obligation/General 6.3%
--------------------------------------------------------------------------------
Water and Sewer 5.7%
--------------------------------------------------------------------------------
Other 9.0%
--------------------------------------------------------------------------------
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34.9%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(2) The Fund paid shareholders capital gains and net ordinary income
distributions in December 2008 of $0.1859 per share.
Nuveen Investments 13
NVC Performance OVERVIEW | Nuveen California Select Quality Municipal Fund, Inc.
as of August 31, 2009
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 13.04
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 13.65
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -4.47%
--------------------------------------------------------------------------------
Market Yield 6.53%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 10.03%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 315,197
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 15.38
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 11.46
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 5/22/91)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month
(Cumulative) 25.23% 10.76%
--------------------------------------------------------------------------------
1-Year 10.45% 2.91%
--------------------------------------------------------------------------------
5-Year 4.15% 3.52%
--------------------------------------------------------------------------------
10-Year 4.61% 5.68%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 22.7%
--------------------------------------------------------------------------------
Tax Obligation/Limited 15.6%
--------------------------------------------------------------------------------
Health Care 13.8%
--------------------------------------------------------------------------------
Transportation 11.7%
--------------------------------------------------------------------------------
Utilities 10.8%
--------------------------------------------------------------------------------
Tax Obligation/General 9.8%
--------------------------------------------------------------------------------
Water and Sewer 4.9%
--------------------------------------------------------------------------------
Other 10.7%
--------------------------------------------------------------------------------
CREDIT QUALITY (as a % of total investments)
[PIE CHART]
AAA/U.S. Guaranteed 35%
AA 19%
A 30%
BBB 11%
BB or Lower 1%
N/R 4%
2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE(2)
[BAR CHART]
Sep $ 0.0605
Oct 0.0605
Nov 0.0605
Dec 0.0605
Jan 0.0605
Feb 0.0605
Mar 0.0655
Apr 0.0655
May 0.071
Jun 0.071
Jul 0.071
Aug 0.071
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE CHART]
9/02/08 $ 12.88
12.97
12.98
12.64
11
10.75
7.6
9.49
10.5601
10.74
10.91
9.74
8.95
9.76
8.6299
7.77
8.842
9.28
10.2
11.22
10.25
10.38
10.47
10.625
11.06
9.93
10.78
10.24
10.38
10.42
10.56
10.9101
10.91
10.92
11.41
11.55
12.25
11.9
12.05
12.23
11.86
11.57
11.56
11.76
11.84
11.57
11.91
12.1
12.3
12.38
12.45
12.79
12.98
8/31/09 13.04
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34.9%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(2) The Fund paid shareholders capital gains and net ordinary income
distributions in December 2008 of $0.1765 per share.
14 Nuveen Investments
NUC Performance OVERVIEW | Nuveen California Quality Income Municipal Fund, Inc.
as of August 31, 2009
CREDIT QUALITY (as a % of total investments)
[PIE CHART]
AAA/U.S. Guaranteed 43%
AA 17%
A 26%
BBB 10%
BB or Lower 1%
N/R 3%
2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE(2)
[BAR CHART]
Sep $ 0.0615
Oct 0.0615
Nov 0.0615
Dec 0.0615
Jan 0.0615
Feb 0.0615
Mar 0.0655
Apr 0.0655
May 0.0735
Jun 0.0735
Jul 0.0735
Aug 0.0735
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE CHART]
9/02/08 $ 13.2
13.37
13
12.6
11.69
11.27
7.9
9.79
11.25
10.945
11.47
10.65
9.38
9.76
9.3499
8.45
9.46
9.48
10.41
11.67
11.11
11.11
11.52
11.28
11.72
10.3
11.21
10.74
10.9
11.09
11.01
11.4
11.27
11.52
11.84
11.9
12.54
12.3001
12.35
12.43
12.35
12
11.96
11.88
11.88
12
12.25
12.57
12.85
13
13.2296
13.6
13.45
8/31/09 13.55
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 13.55
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 13.98
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -3.08%
--------------------------------------------------------------------------------
Market Yield 6.51%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 10.00%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 307,351
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 14.72
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 11.09
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/20/91)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month
(Cumulative) 25.09% 8.52%
--------------------------------------------------------------------------------
1-Year 12.65% 2.08%
--------------------------------------------------------------------------------
5-Year 4.34% 3.92%
--------------------------------------------------------------------------------
10-Year 4.50% 5.54%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 28.7%
--------------------------------------------------------------------------------
Tax Obligation/Limited 19.3%
--------------------------------------------------------------------------------
Health Care 12.5%
--------------------------------------------------------------------------------
Transportation 8.8%
--------------------------------------------------------------------------------
Tax Obligation/General 8.6%
--------------------------------------------------------------------------------
Utilities 5.1%
--------------------------------------------------------------------------------
Education and Civic Organizations 5.1%
--------------------------------------------------------------------------------
Other 11.9%
--------------------------------------------------------------------------------
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34.9%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(2) The Fund paid shareholders capital gains and net ordinary income
distributions in December 2008 of $0.1646 per share.
Nuveen Investments 15
NCA | Nuveen California Municipal Value Fund, Inc.
| Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 3.3% (3.3% OF TOTAL INVESTMENTS)
$ 465 California County Tobacco Securitization Agency, Tobacco 6/15 at 100.00 BBB $ 424,805
Settlement Asset-Backed Bonds, Sonoma County Tobacco
Securitization Corporation, Series 2005, 4.250%, 6/01/21
2,000 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 1,560,020
Enhanced Tobacco Settlement Asset-Backed Bonds, Series
2007A-1, 5.750%, 6/01/47
11,010 Golden State Tobacco Securitization Corporation, California, 6/22 at 100.00 BBB 5,800,068
Enhanced Tobacco Settlement Asset-Backed Bonds, Series
2007A-2, 0.000%, 6/01/37
------------------------------------------------------------------------------------------------------------------------------------
13,475 Total Consumer Staples 7,784,893
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 0.8% (0.8% OF TOTAL
INVESTMENTS)
140 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 A3 129,809
University of Redlands, Series 2005A, 5.000%, 10/01/35
California Educational Facilities Authority, Revenue Bonds,
University of the Pacific, Series 2006:
95 5.000%, 11/01/21 11/15 at 100.00 A2 95,695
125 5.000%, 11/01/25 11/15 at 100.00 A2 121,085
1,500 California Statewide Community Development Authority, 12/09 at 102.00 N/R 1,435,050
Certificates of Participation, San Diego Space and Science
Foundation, Series 1996, 7.500%, 12/01/26
------------------------------------------------------------------------------------------------------------------------------------
1,860 Total Education and Civic Organizations 1,781,639
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 10.2% (10.2% OF TOTAL INVESTMENTS)
310 California Health Facilities Financing Authority, Revenue 4/16 at 100.00 A+ 276,058
Bonds, Kaiser Permanante System, Series 2006, 5.000%,
4/01/37
5,365 California Health Facilities Financing Authority, Revenue 11/16 at 100.00 Aa3 4,842,127
Bonds, Sutter Health, Series 2007A, 5.250%, 11/15/46 (UB)
560 California Statewide Communities Development Authority, 3/15 at 100.00 A 489,972
Revenue Bonds, Adventist Health System West, Series 2005A,
5.000%, 3/01/35
3,000 California Statewide Community Development Authority, Insured 7/17 at 100.00 AAA 2,995,260
Health Facility Revenue Bonds, Catholic Healthcare West,
Series 2008K, 5.500%, 7/01/41 - AGC Insured
990 California Statewide Community Development Authority, Revenue 3/16 at 100.00 A+ 882,526
Bonds, Kaiser Permanante System, Series 2006, 5.000%,
3/01/41
1,460 California Statewide Community Development Authority, Revenue 8/16 at 100.00 A+ 1,413,776
Bonds, Kaiser Permanente System, Series 2001C, 5.250%,
8/01/31
2,710 California Statewide Community Development Authority, Revenue No Opt. Call A 2,666,369
Bonds, Sherman Oaks Health System, Series 1998A, 5.000%,
8/01/22 - AMBAC Insured
3,390 California Statewide Community Development Authority, Revenue 11/15 at 100.00 Aa3 2,937,130
Bonds, Sutter Health, Series 2005A, 5.000%, 11/15/43
1,525 Loma Linda, California, Hospital Revenue Bonds, Loma Linda 12/18 at 100.00 BBB 1,596,416
University Medical Center, Series 2008A, 8.250%, 12/01/38
3,000 Santa Clara County Financing Authority, California, Insured 8/17 at 100.00 A+ 3,027,330
Revenue Bonds, El Camino Hospital, Series 2007A, 5.750%,
2/01/41 - AMBAC Insured
1,000 Sierra View Local Health Care District, California, Revenue 9/17 at 100.00 N/R 886,740
Bonds, Series 2007, 5.250%, 7/01/37
1,730 West Contra Costa Healthcare District, California, 7/14 at 100.00 A+ 1,774,219
Certificates of Participation, Series 2004, 5.375%,
7/01/21 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
25,040 Total Health Care 23,787,923
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.5% (1.4% OF TOTAL INVESTMENTS)
2,460 California Statewide Community Development Authority, 1/10 at 102.00 N/R 1,906,279
Multifamily Housing Revenue Bonds, Harbor City Lights,
Series 1999Y, 6.650%, 7/01/39 (Alternative Minimum Tax)
445 Riverside County, California, Subordinate Lien Mobile Home 10/09 at 100.00 N/R 364,277
Park Revenue Bonds, Bravo Mobile Home Park Project, Series
1999B, 6.500%, 3/20/29
1,400 San Dimas Housing Authority, California, Mobile Home Park 1/10 at 101.00 N/R 1,145,984
Revenue Bonds, Charter Oak Mobile Home Estates Acquisition
Project, Series 1998A, 5.700%, 7/01/28
------------------------------------------------------------------------------------------------------------------------------------
4,305 Total Housing/Multifamily 3,416,540
------------------------------------------------------------------------------------------------------------------------------------
16 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 2.3% (2.3% OF TOTAL INVESTMENTS)
$ 310 California Housing Finance Agency, Home Mortgage Revenue 2/16 at 100.00 AA- $ 313,658
Bonds, Series 2006H, 5.750%, 8/01/30 - FGIC Insured
(Alternative Minimum Tax)
4,390 California Housing Finance Agency, Home Mortgage Revenue 2/16 at 100.00 AA- 3,360,457
Bonds, Series 2007M, 4.700%, 8/01/36 (Alternative Minimum
Tax)
2,125 California State Department of Veteran Affairs, Home Purchase 12/16 at 100.00 Aa2 1,732,534
Revenue Bonds, Series 2007, 5.000%, 12/01/42 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
6,825 Total Housing/Single Family 5,406,649
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.4% (0.4% OF TOTAL INVESTMENTS)
1,000 California Pollution Control Financing Authority, Solid Waste 1/16 at 102.00 BBB 921,760
Disposal Revenue Bonds, Waste Management Inc., Series
2002A, 5.000%, 1/01/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 5.8% (5.8% OF TOTAL INVESTMENTS) ABAG Finance
Authority for Non-Profit Corporations, California,
Cal-Mortgage Revenue Bonds, Elder Care Alliance of Union City,
Series 2004:
1,850 5.400%, 8/15/24 8/14 at 100.00 A 1,853,922
2,130 5.600%, 8/15/34 8/14 at 100.00 A 2,110,148
2,505 ABAG Finance Authority for Non-Profit Corporations, 10/09 at 100.00 BBB- 2,354,424
California, Certificates of Participation, American Baptist
Homes of the West, Series 1997A, 5.750%, 10/01/17
4,000 ABAG Finance Authority for Non-Profit Corporations, 8/18 at 100.00 A 3,746,280
California, Health Facility Revenue Bonds, The Institute on
Aging, Series 2008A, 5.650%, 8/15/38
2,230 California Statewide Community Development Authority, 10/09 at 101.00 BBB 2,145,951
Certificates of Participation, Internext Group, Series
1999, 5.375%, 4/01/17
1,500 Riverside County Public Financing Authority, California, 11/09 at 101.00 BBB- 1,386,735
Certificates of Participation, Air Force Village West,
Series 1999, 5.750%, 5/15/19
------------------------------------------------------------------------------------------------------------------------------------
14,215 Total Long-Term Care 13,597,460
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 1.9% (1.9% OF TOTAL INVESTMENTS)
500 California, General Obligation Bonds, Series 2004, 5.000%, 2/14 at 100.00 A 518,855
2/01/20
1,500 Los Angeles Unified School District, California, General 7/16 at 100.00 AA- 1,567,845
Obligation Bonds, Series 2006F, 5.000%, 7/01/24 - FGIC
Insured
2,000 Puerto Rico, General Obligation and Public Improvement Bonds, No Opt. Call A 2,020,980
Series 2001A, 5.500%, 7/01/20 - NPFG Insured
270 Roseville Joint Union High School District, Placer County, 8/15 at 100.00 AA- 277,217
California, General Obligation Bonds, Series 2006B, 5.000%,
8/01/27 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
4,270 Total Tax Obligation/General 4,384,897
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 29.1% (29.1% OF TOTAL INVESTMENTS)
1,000 Artesia Redevelopment Agency, California, Tax Allocation 6/15 at 100.00 BBB+ 868,190
Revenue Bonds, Artesia Redevelopment Project Area, Series
2007, 5.375%, 6/01/27
Bell Community Redevelopment Agency, California, Tax
Allocation Bonds, Bell Project Area, Series 2003:
3,000 5.500%, 10/01/23 - RAAI Insured 10/13 at 100.00 BBB- 2,994,030
1,000 5.625%, 10/01/33 - RAAI Insured 10/13 at 100.00 BBB- 938,000
2,400 Calexico Community Redevelopment Agency, California, Tax 8/13 at 102.00 BBB+ 2,128,128
Allocation Bonds, Merged Central Business and Residential
District Project, Series 2003C, 5.000%, 8/01/28 - AMBAC
Insured
340 Capistrano Unified School District, Orange County, California, 9/15 at 100.00 A 314,602
Special Tax Bonds, Community Facilities District, Series
2005, 5.000%, 9/01/24 - FGIC Insured
1,005 Chino Redevelopment Agency, California, Merged Chino 9/16 at 101.00 BBB 819,407
Redevelopment Project Area Tax Allocation Bonds, Series
2006, 5.000%, 9/01/38 - AMBAC Insured
Golden State Tobacco Securitization Corporation, California,
Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A:
20,110 5.000%, 6/01/35 - FGIC Insured 6/15 at 100.00 A- 17,848,227
2,345 5.000%, 6/01/38 - FGIC Insured 6/15 at 100.00 A- 2,068,993
Nuveen Investments 17
NCA | Nuveen California Municipal Value Fund, Inc. (continued)
| Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
Irvine, California, Unified School District,
Community Facilities District Special Tax Bonds,
Series 2006A:
$ 150 5.000%, 9/01/26 9/16 at 100.00 N/R $ 131,178
355 5.125%, 9/01/36 9/16 at 100.00 N/R 292,286
2,500 Kern County Board of Education, California, Certificates of 6/16 at 100.00 A 2,425,625
Participation, Series 2006A, 5.000%, 6/01/31 - NPFG Insured
615 Los Angeles Community Redevelopment Agency, California, Lease 9/15 at 100.00 A2 519,650
Revenue Bonds, Manchester Social Services Project, Series
2005, 5.000%, 9/01/37 - AMBAC Insured
2,750 Los Angeles County Schools, California, Certificates of 9/13 at 100.00 AAA 2,789,765
Participation, Pooled Financing Program, Regionalized
Business Services Corporation, Series 2003A, 5.000%,
9/01/28 - FSA Insured
2,975 Milpitas, California, Local Improvement District 20 Limited 9/09 at 103.00 N/R 2,915,202
Obligation Bonds, Series 1998A, 5.650%, 9/02/13
Modesto Schools Infrastructure Financing Agency, Stanislaus
County, California, Special Tax Revenue Bonds, Series 2004:
1,045 5.250%, 9/01/22 - AMBAC Insured 9/14 at 100.00 N/R 947,125
1,145 5.250%, 9/01/23 - AMBAC Insured 9/14 at 100.00 N/R 1,019,852
1,255 5.250%, 9/01/24 - AMBAC Insured 9/14 at 100.00 N/R 1,112,721
420 Oakland Redevelopment Agency, California, Subordinate Lien Tax 3/13 at 100.00 A 423,679
Allocation Bonds, Central District Redevelopment Project,
Series 2003, 5.500%, 9/01/18 - FGIC Insured
8,000 Palmdale Elementary School District, Los Angeles County, 2/10 at 101.00 AAA 8,034,880
California, Special Tax Bonds, Community Facilities
District 90-1, Series 1999, 5.800%, 8/01/29 - FSA Insured
290 Rialto Redevelopment Agency, California, Tax Allocation Bonds, 9/15 at 100.00 A- 240,482
Merged Project Area, Series 2005A, 5.000%, 9/01/35 -
SYNCORA GTY Insured
5,000 Riverside County Redevelopment Agency, California, Tax 10/14 at 100.00 A- 4,092,450
Allocation Housing Bonds, Series 2004A, 5.000%, 10/01/37 -
SYNCORA GTY Insured
360 Roseville, California, Certificates of Participation, Public 8/13 at 100.00 AA- 337,064
Facilities, Series 2003A, 5.000%, 8/01/25 - AMBAC Insured
3,130 San Francisco Redevelopment Agency, California, Lease Revenue 7/11 at 102.00 AA- 3,266,249
Bonds, Moscone Convention Center, Series 2004, 5.250%,
7/01/23 - AMBAC Insured
2,750 San Jose Financing Authority, California, Lease Revenue 9/11 at 100.00 AA+ 2,877,600
Refunding Bonds, Convention Center Project, Series 2001F,
5.000%, 9/01/20 - NPFG Insured
625 San Mateo Union High School District, San Mateo County, 12/17 at 100.00 N/R 544,269
California, Certificates of Participation, Phase 1, Series
2007A, 5.000%, 12/15/30 - AMBAC Insured
740 Shafter Joint Powers Financing Authority, California, Lease 1/10 at 100.00 A- 742,242
Revenue Bonds, Community Correctional Facility Acquisition
Project, Series 1997A, 5.950%, 1/01/11
1,000 Simi Valley, California, Certificates of Participation, Series 9/14 at 100.00 A+ 1,004,830
2004, 5.000%, 9/01/24 - AMBAC Insured
1,500 Tehachapi Redevelopment Agency, California, Tax Allocation No Opt. Call BBB 1,151,580
Bonds, Series 2007, 5.250%, 12/01/37 - RAAI Insured
1,925 Travis Unified School District, Solano County, California, 9/16 at 100.00 N/R 1,719,718
Certificates of Participation, Series 2006, 5.000%,
9/01/26 - FGIC Insured
2,500 Ventura County Superintendent of Schools, California, 12/11 at 100.00 AA- 2,515,650
Certificates Participation, Series 2003, 5.000%, 12/01/27 -
AMBAC Insured
1,115 Vista Joint Powers Financing Authority, California, Special 9/09 at 100.00 N/R 979,762
Tax Lease Revenue Refunding Bonds, Community Facilities
District 90-2, Series 1997A, 5.875%, 9/01/20
------------------------------------------------------------------------------------------------------------------------------------
73,345 Total Tax Obligation/Limited 68,063,436
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 4.2% (4.2% OF TOTAL INVESTMENTS)
2,500 Bay Area Toll Authority, California, Revenue Bonds, San 4/16 at 100.00 AA 2,551,875
Francisco Bay Area Toll Bridge, Series 2006F, 5.000%,
4/01/31 (UB)
5,500 Foothill/Eastern Transportation Corridor Agency, California, 1/14 at 101.00 BBB- 4,692,490
Toll Road Revenue Refunding Bonds, Series 1999, 5.875%,
1/15/27
1,250 Fresno, California, Airport Revenue Bonds, Series 2000A, 7/10 at 101.00 AAA 1,256,375
5.500%, 7/01/30 - FSA Insured
220 Palm Springs Financing Authority, California, Palm Springs 7/14 at 102.00 N/R 158,246
International Airport Revenue Bonds, Series 2006, 5.550%,
7/01/28 (Alternative Minimum Tax)
18 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION (continued)
$ 1,245 San Francisco Airports Commission, California, Revenue Bonds, 5/11 at 100.00 A1 $ 1,123,089
San Francisco International Airport, Second Series 1999,
Issue 23A, 5.000%, 5/01/30 - FGIC Insured (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
10,715 Total Transportation 9,782,075
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 25.7% (25.7% OF TOTAL INVESTMENTS) (4)
Burbank Redevelopment Agency, California, Tax Allocation
Bonds, Golden State Redevelopment Project, Series 2003:
1,700 5.625%, 12/01/28 (Pre-refunded 12/01/13) - FGIC Insured 12/13 at 100.00 N/R (4) 1,966,441
5,010 5.750%, 12/01/33 (Pre-refunded 12/01/13) - FGIC Insured 12/13 at 100.00 N/R (4) 5,820,718
2,400 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 N/R (4) 2,586,504
Settlement Asset-Backed Bonds, Sonoma County Tobacco
Funding Corporation, Series 2002B, 5.500%, 6/01/30
(Pre-refunded 6/01/12)
3,300 California Department of Water Resources, Power Supply Revenue 5/12 at 101.00 Aaa 3,681,513
Bonds, Series 2002A, 5.125%, 5/01/18 (Pre-refunded 5/01/12)
3,115 California Educational Facilities Authority, Revenue Bonds, 6/10 at 101.00 Baa3 (4) 3,268,071
Pooled College and University Projects, Series 2000C,
6.750%, 6/01/30 (ETM)
2,845 California, General Obligation Bonds, Series 2004, 5.250%, 4/14 at 100.00 AAA 3,280,342
4/01/34 (Pre-refunded 4/01/14)
3,260 California, Various Purpose General Obligation Bonds, Series 3/10 at 101.00 AAA 3,377,458
2000, 5.750%, 3/01/27 (Pre-refunded 3/01/10) - NPFG Insured
2,065 Contra Costa County, California, GNMA Mortgage-Backed No Opt. Call AAA 2,822,566
Securities Program Home Mortgage Revenue Bonds, Series
1988, 8.250%, 6/01/21 (Alternative Minimum Tax) (ETM)
2,105 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 2,351,601
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.250%, 6/01/33 (Pre-refunded 6/01/13)
685 Los Angeles Community Redevelopment Agency, California, Tax 1/10 at 100.00 BBB (4) 691,713
Allocation Refunding Bonds, Central Business District
Redevelopment Project, Series 1987G, 6.750%, 7/01/10 (ETM)
5,000 Orange County Sanitation District, California, Certificates of 8/13 at 100.00 AAA 5,750,700
Participation, Series 2003, 5.250%, 2/01/27 (Pre-refunded
8/01/13) - FGIC Insured
8,565 Palmdale, California, GNMA Mortgage-Backed Securities Program No Opt. Call AAA 6,681,899
Single Family Mortgage Revenue Bonds, Series 1988A, 0.000%,
3/01/17 (ETM)
3,300 Puerto Rico Highway and Transportation Authority, Highway 7/12 at 100.00 AAA 3,665,508
Revenue Bonds, Series 2002D, 5.375%, 7/01/36 (Pre-refunded
7/01/12)
20,415 San Bernardino County, California, GNMA Mortgage-Backed No Opt. Call AAA 11,027,162
Securities Program Single Family Home Mortgage Revenue
Bonds, Series 1988A, 0.000%, 9/01/21 (Alternative Minimum
Tax) (ETM)
3,000 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/10 at 101.00 BBB+ (4) 3,226,620
Loan Note, Series 1999A, 6.500%, 10/01/24 (Pre-refunded
10/01/10)
------------------------------------------------------------------------------------------------------------------------------------
66,765 Total U.S. Guaranteed 60,198,816
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 7.0% (7.0% OF TOTAL INVESTMENTS)
2,445 California Statewide Community Development Authority, 12/09 at 100.00 N/R 2,147,761
Certificates of Participation Refunding, Rio Bravo Fresno
Project, Series 1999A, 6.500%, 12/01/18 (5)
1,800 Long Beach Bond Finance Authority, California, Natural Gas No Opt. Call A 1,739,088
Purchase Revenue Bonds, Series 2007A, 5.500%, 11/15/37
21,500 Merced Irrigation District, California, Certificates of 9/16 at 64.56 A 8,545,605
Participation, Water and Hydroelectric System Projects,
Series 2008A, 0.000%, 9/01/23
605 Merced Irrigation District, California, Electric System 9/15 at 100.00 N/R 507,728
Revenue Bonds, Series 2005, 5.125%, 9/01/31 - SYNCORA GTY
Insured
3,470 Puerto Rico Industrial, Tourist, Educational, Medical and 6/10 at 101.00 Baa3 3,483,776
Environmental Control Facilities Financing Authority,
Co-Generation Facility Revenue Bonds, Series 2000A, 6.625%,
6/01/26 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
29,820 Total Utilities 16,423,958
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 7.9% (7.9% OF TOTAL INVESTMENTS)
1,480 California Department of Water Resources, Water System Revenue 6/15 at 100.00 AAA 1,582,312
Bonds, Central Valley Project, Series 2005AD, 5.000%,
12/01/22 - FSA Insured
1,500 Castaic Lake Water Agency, California, Certificates of 8/16 at 100.00 AA- 1,437,870
Participation, Series 2006C, 5.000%, 8/01/36 - NPFG Insured
Nuveen Investments 19
NCA | Nuveen California Municipal Value Fund, Inc. (continued)
| Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 410 Healdsburg Public Financing Authority, California, Wastewater 4/16 at 100.00 AA- $ 391,989
Revenue Bonds, Series 2006, 5.000%, 4/01/36 - NPFG Insured
500 Los Angeles County Sanitation Districts Financing Authority, 10/13 at 100.00 AAA 526,425
California, Senior Revenue Bonds, Capital Projects, Series
2003A, 5.000%, 10/01/23 - FSA Insured
5,000 Los Angeles Department of Water and Power, California, 7/17 at 100.00 AA 5,006,400
Waterworks Revenue Bonds, Series 2007A-2, 5.000%, 7/01/44 -
AMBAC Insured
Madera Irrigation District. California, Water Revenue
Refunding Bonds, Series 2008:
1,850 5.500%, 1/01/33 1/18 at 100.00 A- 1,877,010
3,000 5.500%, 1/01/38 1/18 at 100.00 A- 3,021,690
1,580 San Diego County Water Authority, California, Water Revenue 5/12 at 101.00 AA+ 1,609,009
Refunding Certificates of Participation, Series 2002A,
5.000%, 5/01/26 - NPFG Insured
3,500 Woodbridge Irrigation District, California, Certificates of 7/13 at 100.00 A+ 3,104,255
Participation, Water Systems Project, Series 2003, 5.625%,
7/01/43
------------------------------------------------------------------------------------------------------------------------------------
18,820 Total Water and Sewer 18,556,960
------------------------------------------------------------------------------------------------------------------------------------
$ 270,455 Total Investments (cost $233,171,916) - 100.1% 234,107,006
==================------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (1.9)% (4,490,000)
------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.8% 4,181,001
------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 233,798,007
==================================================================================================================
(1) All percentages shown in the Porfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call provisions
at varying prices at later dates. Certain mortgage-backed securities may
be subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be below investment
grade.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) This debt has been restructured to accommodate capital maintenance at the
facility. Major highlights of the debt restructuring include the
following: (1) the principal balance outstanding on and after December 1,
2007, shall accrue interest at a rate of 6.500% per annum commencing
December 1, 2007; (2) the interest shall accrue but not be payable on June
1, 2008 or December 1, 2008, but shall instead be deferred and paid by the
end of calendar year 2011; (3) no principal component shall be pre-payable
from the Minimum Sinking Fund Account during calendar years 2008 and 2009
but such pre-payments shall recommence beginning in calendar year 2010
according to a revised schedule. Management believes that the
restructuring is in the best interest of Fund shareholders and that it is
more-likely-than-not that the borrower will fulfill its obligation.
Consequently, the Fund continues to accrue interest on this obligation.
N/R Not rated.
(ETM) Escrowed to maturity.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140. See Notes to
Financial Statements, Footnote 1 - Inverse Floating Rate Securities for
more information.
See accompanying notes to financial statements.
20 Nuveen Investments
NCB | Nuveen California Municipal Value Fund 2
| Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 5.1% (5.0% OF TOTAL INVESTMENTS)
$ 3,500 Tobacco Securitization Authority of Northern California, 6/15 at 100.00 BBB $ 2,579,778
Tobacco Settlement Asset-Backed Bonds, Series 2005A-1,
5.500%, 6/01/45
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 10.1% (9.9% OF TOTAL
INVESTMENTS)
500 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 A3 501,280
University of Redlands, Series 2005A, 5.000%, 10/01/25
2,510 California Educational Facilities Authority, Revenue Bonds, 11/19 at 100.00 A2 2,551,440
University of the Pacific, Series 2009, 5.500%, 11/01/39
1,965 California State Public Works Board, Lease Revenue Bonds, 4/19 at 100.00 A- 2,021,003
University of California Department of Education Riverside
Campus Project, Series 2009B, 5.750%, 4/01/23
------------------------------------------------------------------------------------------------------------------------------------
4,975 Total Education and Civic Organizations 5,073,723
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 21.6% (21.1% OF TOTAL INVESTMENTS)
1,000 ABAG Finance Authority for Non-Profit Corporations, 5/19 at 100.00 A 1,016,070
California, Cal-Mortgage Insured Health Facility Revenue
Bonds, Saint Rose Hospital, Series 2009A, 6.000%, 5/15/29
1,000 California Health Facilities Financing Authority Revenue 11/19 at 100.00 A 1,021,510
Bonds, Series 2009A (Childrens Hospital of Orange County,
6.500%, 11/01/38
1,900 California Health Facilities Financing Authority, Revenue 7/19 at 100.00 A 1,906,802
Bonds, Catholic Healthcare West, Series 2009A, 6.000%,
7/01/39
2,000 California Health Facilities Financing Authority, Revenue 3/16 at 100.00 A+ 1,855,000
Bonds, Kaiser Permanante System, Series 2006, 5.250%,
3/01/45
850 California Municipal Financing Authority, Certificates of 2/17 at 100.00 Baa2 749,828
Participation, Community Hospitals of Central California,
Series 2007, 5.250%, 2/01/27
1,400 California Statewide Communities Development Authority, 3/18 at 100.00 AAA 1,337,602
Revenue Bonds, Adventist Health System West, Series 2007B,
5.000%, 3/01/37 - AGC Insured
125 California Statewide Community Development Authority, Revenue 3/16 at 100.00 A+ 111,430
Bonds, Kaiser Permanante System, Series 2006, 5.000%,
3/01/41
1,500 California Statewide Community Development Authority, Revenue 8/18 at 100.00 AAA 1,497,690
Bonds, Sutter Health, Series 2004D, 5.050%, 8/15/38 - FSA
Insured
800 Hospital Authority of Delaware County, Indiana, Hospital 8/16 at 100.00 Baa3 659,424
Revenue Bonds, Cardinal Health System, Series 2006, 5.000%,
8/01/24
850 Illinois Finance Authority, Revenue Bonds, Sherman Health 8/17 at 100.00 Baa1 688,322
Systems, Series 2007A, 5.500%, 8/01/37
------------------------------------------------------------------------------------------------------------------------------------
11,425 Total Health Care 10,843,678
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 10.7% (10.4% OF TOTAL INVESTMENTS)
1,485 California Housing Finance Agency, California, Home Mortgage 2/18 at 100.00 AA- 1,438,980
Revenue Bonds, Series 2008L, 5.500%, 8/01/38
2,500 California Housing Finance Agency, Home Mortgage Revenue 2/16 at 100.00 AA- 2,063,400
Bonds, Series 2006K, 4.625%, 8/01/26 (Alternative Minimum
Tax)
2,000 California State Department of Veteran Affairs, Home Purchase 12/16 at 100.00 Aa2 1,835,640
Revenue Bonds, Series 2007b, 5.150%, 12/01/27 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
5,985 Total Housing/Single Family 5,338,020
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.5% (1.4% OF TOTAL INVESTMENTS)
900 California Enterprise Development Authority, Sewer Facilities 9/12 at 100.00 BBB+ 739,350
Revenue, Anheuser-Busch Project, Senior Lien Series 2007,
5.300%, 9/01/47 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 1.0% (1.0% OF TOTAL INVESTMENTS)
585 Courtland Industrial Development Board, Alabama, Solid Waste 6/15 at 100.00 BBB 503,673
Revenue Bonds, International Paper Company Project, Series
2005A, 5.200%, 6/01/25 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 21
NCB | Nuveen California Municipal Value Fund 2 (continued)
| Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 12.4% (12.1% OF TOTAL INVESTMENTS)
$ 2,000 California, Various Purpose General Obligation Bonds, Series 6/17 at 100.00 A $ 1,907,560
2007, 5.000%, 6/01/37 - NPFG Insured
2,100 Carlsbad Unified School District, San Diego County, 5/24 at 100.00 AA 1,229,151
California, General Obligation Bonds, Series 2009B,
0.000%, 5/01/34
1,120 Oakland, California, General Obligation Bonds, Measure Series 1/19 at 100.00 AA- 1,119,933
2009DD, 5.250%, 1/15/29
1,895 Pacific Grove Unified School District, California, General 8/19 at 100.00 AA 1,932,711
Obligation Bonds, Series 2009C., 5.375%, 8/01/39
------------------------------------------------------------------------------------------------------------------------------------
7,115 Total Tax Obligation/General 6,189,355
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 11.9% (11.6% OF TOTAL INVESTMENTS)
1,000 Lancaster Redevelopment Agency Combined Project Areas, 8/19 at 100.00 A 1,006,200
Housing Programs, California, Tax Allocation Bonds 2009,
6.875%, 8/01/39 (WI/DD, Settling 9/03/09)
1,000 San Francisco City and County, California, Redevelopment 8/19 at 100.00 A 1,016,260
Financing Authority, Tax Allocation Revenue Bonds, San
Francisco Redevelopment Projects, Series 2009B, 6.625%,
8/01/39 (WI/DD, Settling 9/03/09)
1,500 San Francisco City and County, California, Certificates of 4/19 at 100.00 AA- 1,527,060
Participation, Multiple Capital Improvement Projects,
Series 2009A, 5.250%, 4/01/31
500 Val Verde Unified School District Financing Authority, 10/13 at 102.00 N/R 458,595
California, Special Tax Revenue, Junior Lien Refunding
Series 2003, 6.250%, 10/01/28
2,000 Westlake Village, California, Certificates of Participation, 6/16 at 100.00 AA+ 1,958,900
Financing Project, Series 2009, 5.000%, 6/01/39
------------------------------------------------------------------------------------------------------------------------------------
6,000 Total Tax Obligation/Limited 5,967,015
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 2.0% (2.0% OF TOTAL INVESTMENTS)
1,000 San Francisco Airports Commission, California, Revenue Bonds, 5/16 at 100.00 A1 1,005,560
San Francisco International Airport, Second Series 2002,
Issue 32G, 5.000%, 5/01/24 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 13.5% (13.2% OF TOTAL INVESTMENTS)
1,000 M-S-R Energy Authority, California, Gas Revenue Bonds, No Opt. Call A 1,008,020
Citigroup Prepay Contracts, Series 2009C, 6.500%, 11/01/39
(WI/DD, Settling 9/10/09)
2,495 Roseville Natural Gas Financing Authority, California, Gas No Opt. Call A 2,370,275
Revenue Bonds, Series 2007, 5.000%, 2/15/17
2,400 Southern California Public Power Authority, Natural Gas No Opt. Call A 2,368,968
Project 1 Revenue Bonds, Series 2007A, 5.250%, 11/01/24
1,000 Tuolumne Wind Project Authority, California, Revenue Bonds, 1/19 at 100.00 A+ 1,027,310
Tuolumne Company Project, Series 2009A, 5.625%, 1/01/29
------------------------------------------------------------------------------------------------------------------------------------
6,895 Total Utilities 6,774,573
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 12.5% (12.3% OF TOTAL INVESTMENTS)
2,000 Orange County Sanitation District, California, Certificates 2/19 at 100.00 AAA 2,192,880
of Participation, Series 2007, Trust 3020, 17.125%,
2/01/35 (IF)
1,000 San Diego Public Facilities Financing Authority, California, 5/19 at 100.00 A+ 1,061,620
Sewerage Revenue Bonds, Refunding Series 2009B, 5.250%,
5/15/25
2,500 Western Municipal Water District Facilities Authority, 10/19 at 100.00 AA+ 2,515,650
California, Water Revenue Bonds, Series 2009B, 5.000%,
10/01/39
====================================================================================================================================
22 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 500 Western Riverside Water & Wastewater Financing Authority, 8/19 at 100.00 AAA $ 511,980
California, Revenue Bonds, Western Municipal Water
District, Series 2009, 5.625%, 9/01/39
------------------------------------------------------------------------------------------------------------------------------------
6,000 Total Water and Sewer 6,282,130
------------------------------------------------------------------------------------------------------------------------------------
$ 54,380 Total Investments (cost $48,289,593) - 102.3% 51,296,855
==================------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (2.3)% (1,169,524)
------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 50,127,331
==================================================================================================================
(1) All percentages shown in the portfolio of Investments are based on net
assets applicable to Common Shares unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call provisions
at varying prices at later dates. Certain mortgage-backed securities may
be subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be below investment
grade.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
(IF) Inverse floating rate investment.
See accompanying notes to financial statements.
Nuveen Investments 23
NCP | Nuveen California Performance Plus Municipal Fund, Inc.
| Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 5.3% (3.4% OF TOTAL INVESTMENTS)
$ 555 California County Tobacco Securitization Agency, Tobacco 6/15 at 100.00 BBB $ 507,026
Settlement Asset-Backed Bonds, Sonoma County Tobacco
Securitization Corporation, Series 2005, 4.250%, 6/01/21
3,000 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 2,340,030
Enhanced Tobacco Settlement Asset-Backed Bonds, Series
2007A-1, 5.750%, 6/01/47
12,135 Golden State Tobacco Securitization Corporation, California, 6/22 at 100.00 BBB 6,392,718
Enhanced Tobacco Settlement Asset-Backed Bonds, Series
2007A-2, 0.000%, 6/01/37
------------------------------------------------------------------------------------------------------------------------------------
15,690 Total Consumer Staples 9,239,774
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 10.3% (6.7% OF TOTAL
INVESTMENTS)
160 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 A3 148,354
University of Redlands, Series 2005A, 5.000%, 10/01/35
California Educational Facilities Authority, Revenue Bonds,
University of the Pacific, Series 2006:
110 5.000%, 11/01/21 11/15 at 100.00 A2 110,805
150 5.000%, 11/01/25 11/15 at 100.00 A2 145,302
4,730 California Infrastructure Economic Development Bank, Revenue 10/11 at 101.00 A- 4,824,978
Bonds, J. David Gladstone Institutes, Series 2001, 5.500%,
10/01/21
2,645 California State Public Works Board, Lease Revenue Bonds, 3/18 at 100.00 Aa2 2,616,169
University of California Regents, Trust 1065, 9.041%,
3/01/33 (IF)
4,730 California State University, Systemwide Revenue Bonds, Series 11/12 at 100.00 Aa3 4,912,767
2002A, 5.000%, 11/01/19 - AMBAC Insured
4,000 San Diego County, California, Certificates of Participation, 9/15 at 102.00 Baa3 3,031,240
Burnham Institute, Series 2006, 5.000%, 9/01/34
2,000 University of California, Revenue Bonds, Multi-Purpose 5/13 at 100.00 AA 2,147,040
Projects, Series 2003A, 5.125%, 5/15/17 - AMBAC Insured
(UB)
------------------------------------------------------------------------------------------------------------------------------------
18,525 Total Education and Civic Organizations 17,936,655
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 11.5% (7.5% OF TOTAL INVESTMENTS)
375 California Health Facilities Financing Authority, Revenue 4/16 at 100.00 A+ 333,941
Bonds, Kaiser Permanante System, Series 2006, 5.000%,
4/01/37
6,385 California Health Facilities Financing Authority, Revenue 11/16 at 100.00 Aa3 5,762,718
Bonds, Sutter Health, Series 2007A, 5.250%, 11/15/46 (UB)
1,650 California Municipal Financing Authority, Certificates of 2/17 at 100.00 Baa2 1,292,098
Participation, Community Hospitals of Central California,
Series 2007, 5.250%, 2/01/46
895 California Statewide Communities Development Authority, 7/18 at 100.00 AAA 896,002
Revenue Bonds, Saint Joseph Health System, Trust 2554,
18.134%, 7/01/47 - FSA Insured (IF)
1,000 California Statewide Community Development Authority, Revenue 7/15 at 100.00 BBB 844,250
Bonds, Daughters of Charity Health System, Series 2005A,
5.250%, 7/01/30
1,175 California Statewide Community Development Authority, Revenue 3/16 at 100.00 A+ 1,047,442
Bonds, Kaiser Permanante System, Series 2006, 5.000%,
3/01/41
1,755 California Statewide Community Development Authority, Revenue 8/16 at 100.00 A+ 1,699,437
Bonds, Kaiser Permanente System, Series 2001C, 5.250%,
8/01/31
1,355 California Statewide Community Development Authority, Revenue No Opt. Call A 1,333,184
Bonds, Sherman Oaks Health System, Series 1998A, 5.000%,
8/01/22 - AMBAC Insured
4,045 California Statewide Community Development Authority, Revenue 11/15 at 100.00 Aa3 3,504,628
Bonds, Sutter Health, Series 2005A, 5.000%, 11/15/43
1,750 Loma Linda, California, Hospital Revenue Bonds, Loma Linda 12/17 at 100.00 BBB 1,831,953
University Medical Center, Series 2008A, 8.250%, 12/01/38
1,600 The Regents of the University of California, Medical Center 5/15 at 101.00 Aa2 1,451,696
Pooled Revenue Bonds, Series 2007A, 4.500%, 5/15/37 - NPFG
Insured
------------------------------------------------------------------------------------------------------------------------------------
21,985 Total Health Care 19,997,349
------------------------------------------------------------------------------------------------------------------------------------
24 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 3.1% (2.0% OF TOTAL INVESTMENTS)
$ 1,500 California Statewide Community Development Authority, 8/12 at 100.00 Baa1 $ 1,458,075
Student Housing Revenue Bonds, EAH - Irvine East Campus
Apartments, LLC Project, Series 2002A, 5.500%, 8/01/22 -
ACA Insured
3,915 Los Angeles, California, GNMA Collateralized Multifamily 9/09 at 100.00 AAA 3,917,232
Housing Revenue Bonds, Ridgecroft Apartments, Series
1997E, 6.250%, 9/20/39 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
5,415 Total Housing/Multifamily 5,375,307
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.2% (0.1% OF TOTAL INVESTMENTS)
370 California Housing Finance Agency, Home Mortgage Revenue 2/16 at 100.00 AA- 374,366
Bonds, Series 2006H, 5.750%, 8/01/30 - FGIC Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.7% (0.4% OF TOTAL INVESTMENTS)
1,250 California Pollution Control Financing Authority, Solid 1/16 at 102.00 BBB 1,152,200
Waste Disposal Revenue Bonds, Waste Management Inc.,
Series 2002A, 5.000%, 1/01/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.0% (1.3% OF TOTAL INVESTMENTS)
4,500 California Statewide Communities Development Authority, 12/17 at 100.00 Ba1 3,514,725
Revenue Bonds, Inland Regional Center Project, Series
2007, 5.250%, 12/01/27
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 17.9% (11.6% OF TOTAL INVESTMENTS)
500 California, General Obligation Bonds, Series 2004, 5.000%, 2/14 at 100.00 A 508,430
2/01/23
3,550 Centinela Valley Union High School District, Los Angeles No Opt. Call A 3,499,945
County, California, General Obligation Bonds, Series
2002A, 5.250%, 2/01/26 - NPFG Insured
1,400 Los Rios Community College District, Sacramento, El Dorado 8/14 at 102.00 AAA 1,515,416
and Yolo Counties, California, General Obligation Bonds,
Series 2006C, 5.000%, 8/01/24 - FSA Insured (UB)
3,200 Murrieta Valley Unified School District, Riverside County, 9/17 at 100.00 AAA 3,049,440
California, General Obligation Bonds, Series 2007,
4.500%, 9/01/30 - FSA Insured
4,765 North Orange County Community College District, California, No Opt. Call AA 1,682,379
General Obligation Bonds, Series 2003B, 0.000%, 8/01/27 -
FGIC Insured
2,575 Oxnard School District, Ventura County, California, General 2/22 at 103.00 A+ 2,595,291
Obligation Refunding Bonds, Series 2001A, 5.750%,
8/01/30 - NPFG Insured
6,000 Puerto Rico, General Obligation and Public Improvement No Opt. Call A 6,208,920
Bonds, Series 1993, 7.000%, 7/01/10 - NPFG Insured
Riverside Community College District, California, General
Obligation Bonds, Series 2004A:
15 5.250%, 8/01/25 - NPFG Insured 8/14 at 100.00 AA- 16,024
20 5.250%, 8/01/26 - NPFG Insured 8/14 at 100.00 AA- 20,887
325 Roseville Joint Union High School District, Placer County, 8/15 at 100.00 AA- 333,687
California, General Obligation Bonds, Series 2006B,
5.000%, 8/01/27 - FGIC Insured
4,000 San Diego Unified School District, San Diego County, 7/13 at 101.00 AAA 4,473,360
California, General Obligation Bonds, Series 2003E,
5.250%, 7/01/22 - FSA Insured
3,000 San Jose-Evergreen Community College District, Santa Clara 9/10 at 100.00 Aa2 3,134,610
County, California, General Obligation Bonds, Series
2000B, 5.600%, 9/01/24 - FGIC Insured
2,200 Santa Maria Joint Union High School District, Santa Barbara No Opt. Call Aa3 2,627,460
and San Luis Obispo Counties, California, General
Obligation Bonds, Series 2003B, 5.625%, 8/01/24 - FSA
Insured
1,440 Southwestern Community College District, San Diego County, 8/15 at 102.00 AA- 1,521,331
California, General Obligation Bonds, Series 2005,
5.000%, 8/01/24 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
32,990 Total Tax Obligation/General 31,187,180
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 35.9% (23.2% OF TOTAL INVESTMENTS)
5,045 California State Public Works Board, Lease Revenue Bonds, 3/12 at 100.00 A- 5,017,606
Department of Corrections, Series 2002A, 5.250%,
3/01/22 - AMBAC Insured
1,575 California State Public Works Board, Lease Revenue Bonds, 12/13 at 100.00 A- 1,601,854
Department of General Services, Series 2003D, 5.500%,
6/01/20
3,010 California State Public Works Board, Lease Revenue Bonds, 6/14 at 100.00 A- 3,087,628
Department of Mental Health, Coalinga State Hospital,
Series 2004A, 5.500%, 6/01/19
2,195 California, Economic Recovery Revenue Bonds, Series 2004A, 7/14 at 100.00 A 2,390,026
5.000%, 7/01/15
400 Capistrano Unified School District, Orange County, 9/15 at 100.00 A 370,120
California, Special Tax Bonds, Community Facilities
District, Series 2005, 5.000%, 9/01/24 - FGIC Insured
Nuveen Investments 25
NCP | Nuveen California Performance Plus Municipal Fund, Inc. (continued)
| Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,210 Chino Redevelopment Agency, California, Merged Chino 9/16 at 101.00 BBB $ 986,549
Redevelopment Project Area Tax Allocation Bonds, Series
2006, 5.000%, 9/01/38 - AMBAC Insured
2,000 Coachella Valley Unified School District, Riverside County, 9/16 at 100.00 N/R 1,696,940
California, Certificates of Participation, Series 2007,
5.000%, 9/01/31 - AMBAC Insured
2,500 Corona Public Financing Authority, California, Superior Lien 9/09 at 102.00 AAA 2,584,750
Revenue Bonds, Series 1999A, 5.000%, 9/01/20 - FSA Insured
4,980 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 A- 4,295,200
Tobacco Settlement Asset-Backed Revenue Bonds, Series
2005A, 5.000%, 6/01/45 - AMBAC Insured
1,045 Hawthorne Community Redevelopment Agency, California, Project 9/16 at 100.00 A- 893,872
Area 2 Tax Allocation Bonds, Series 2006, 5.250%,
9/01/36 - SYNCORA GTY Insured
1,750 Hesperia Community Redevelopment Agency, California, Tax 9/15 at 100.00 Baa1 1,441,212
Allocation Bonds, Series 2005A, 5.000%, 9/01/25 - SYNCORA
GTY Insured
Irvine, California, Unified School District, Community
Facilities District Special Tax Bonds, Series 2006A:
185 5.000%, 9/01/26 9/16 at 100.00 N/R 161,786
425 5.125%, 9/01/36 9/16 at 100.00 N/R 349,920
730 Los Angeles Community Redevelopment Agency, California, Lease 9/15 at 100.00 A2 616,821
Revenue Bonds, Manchester Social Services Project, Series
2005, 5.000%, 9/01/37 - AMBAC Insured
10,000 Los Angeles County Public Works Financing Authority, 9/16 at 100.00 A 8,854,100
California, Lease Revenue Bonds, Series 2006B, 5.000%,
9/01/31 - FGIC Insured
4,000 Los Angeles, California, Municipal Improvement Corporation, 1/17 at 100.00 AA- 3,874,560
Lease Revenue Bonds, Police Headquarters, Series 2006A,
4.750%, 1/01/31 - FGIC Insured
1,395 Moreno Valley Unified School District, Riverside County, 3/14 at 100.00 AAA 1,447,968
California, Certificates of Participation, Series 2005,
5.000%, 3/01/22 - FSA Insured
3,500 Murrieta Redevelopment Agency, California, Tax Allocation 8/17 at 100.00 A 2,866,080
Bonds, Series 2007A, 5.000%, 8/01/37 - NPFG Insured
1,000 Paramount Redevelopment Agency, California, Tax Allocation 8/13 at 100.00 A 929,680
Bonds, Redevelopment Project Area 1, Series 2003, 5.000%,
8/01/23 - NPFG Insured
350 Rialto Redevelopment Agency, California, Tax Allocation 9/15 at 100.00 A- 290,237
Bonds, Merged Project Area, Series 2005A, 5.000%, 9/01/35
- SYNCORA GTY Insured
1,500 Riverside County Public Financing Authority, California, Tax 10/15 at 100.00 BBB 1,214,475
Allocation Bonds, Multiple Projects, Series 2005A, 5.000%,
10/01/37 - SYNCORA GTY Insured
1,000 Rohnert Park Community Development Commission, California, 8/17 at 100.00 A 818,880
Redevelopment Project Tax Allocation Bonds, Series 2007R,
5.000%, 8/01/37 - FGIC Insured
435 Roseville, California, Certificates of Participation, Public 8/13 at 100.00 AA- 407,286
Facilities, Series 2003A, 5.000%, 8/01/25 - AMBAC Insured
1,000 Sacramento City Financing Authority, California, Lease No Opt. Call A 1,007,260
Revenue Refunding Bonds, Series 1993A, 5.400%, 11/01/20 -
NPFG Insured
5,000 San Marcos Public Facilities Authority, California, Tax 8/15 at 100.00 A- 4,147,100
Allocation Bonds, Project Areas 2 and 3, Series 2005C,
5.000%, 8/01/35 - AMBAC Insured
750 San Mateo Union High School District, San Mateo County, 12/17 at 100.00 N/R 653,123
California, Certificates of Participation, Phase 1, Series
2007A, 5.000%, 12/15/30 - AMBAC Insured
Santa Clara Redevelopment Agency, California, Tax Allocation
Bonds, Bayshore North Project, Series 2003:
2,695 5.000%, 6/01/20 - NPFG Insured 6/13 at 100.00 A 2,621,642
1,500 5.000%, 6/01/21 - NPFG Insured 6/13 at 100.00 A 1,443,255
Sweetwater Union High School District, San Diego County,
California, Certificates of Participation, Series 2002:
2,000 5.000%, 9/01/23 - FSA Insured 9/12 at 102.00 AAA 2,074,220
4,015 5.000%, 9/01/24 - FSA Insured 9/12 at 102.00 AAA 4,102,206
------------------------------------------------------------------------------------------------------------------------------------
67,190 Total Tax Obligation/Limited 62,246,356
------------------------------------------------------------------------------------------------------------------------------------
26 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 27.9% (18.1% OF TOTAL INVESTMENTS)
$ 1,430 Bay Area Toll Authority, California, Revenue Bonds, San 4/16 at 100.00 AA $ 1,459,673
Francisco Bay Area Toll Bridge, Series 2006F, 5.000%,
4/01/31 (UB)
1,935 Bay Area Toll Authority, California, Revenue Bonds, San 4/18 at 100.00 AA 2,193,348
Francisco Bay Area Toll Bridge, Series 2008, Trust 3211,
13.298%, 4/01/39 (IF)
6,500 Foothill/Eastern Transportation Corridor Agency, California, 1/14 at 101.00 BBB- 5,384,925
Toll Road Revenue Refunding Bonds, Series 1999, 5.875%,
1/15/29
Long Beach, California, Harbor Revenue Bonds, Series 2000A:
2,740 5.750%, 5/15/14 (Alternative Minimum Tax) 5/10 at 101.00 AA 2,810,528
11,885 5.750%, 5/15/15 (Alternative Minimum Tax) 5/10 at 101.00 AA 12,166,556
8,485 Port of Oakland, California, Revenue Bonds, Series 2000K, 5/10 at 100.00 A1 8,444,187
5.750%, 11/01/29 - FGIC Insured
14,000 San Francisco Airports Commission, California, Revenue Bonds, 5/10 at 101.00 AAA 14,091,836
San Francisco International Airport, Second Series 2000,
Issue 25, 5.500%, 5/01/24 - FSA Insured (Alternative
Minimum Tax)
2,000 San Francisco Airports Commission, California, Revenue 5/11 at 100.00 A1 2,006,840
Refunding Bonds, San Francisco International Airport,
Second Series 2001, Issue 27B, 5.000%, 5/01/23 - FGIC
Insured
------------------------------------------------------------------------------------------------------------------------------------
48,975 Total Transportation 48,557,893
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 13.0% (8.4% OF TOTAL INVESTMENTS) (4)
175 California County Tobacco Securitization Agency, Tobacco 6/10 at 100.00 N/R (4) 179,879
Settlement Asset-Backed Bonds, Sonoma County Tobacco
Funding Corporation, Series 2002B, 5.125%, 6/01/20
(Pre-refunded 6/01/10)
5,360 California Infrastructure Economic Development Bank, First No Opt. Call AAA 6,280,473
Lien Revenue Bonds, San Francisco Bay Area Toll Bridge,
Series 2003A, 5.000%, 7/01/23 - FSA Insured (ETM)
4,000 Contra Costa County, California, GNMA Mortgage-Backed No Opt. Call AAA 5,467,440
Securities Program Home Mortgage Revenue Bonds, Series
1988, 8.250%, 6/01/21 (Alternative Minimum Tax) (ETM)
3,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 3,535,110
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.750%, 6/01/39 (Pre-refunded 6/01/13)
2,500 Los Angeles Unified School District, California, General 7/10 at 100.00 AA- (4) 2,604,750
Obligation Bonds, Series 2000D, 5.375%, 7/01/25
(Pre-refunded 7/01/10) - FGIC Insured
65 Port of Oakland, California, Revenue Bonds, Series 2000K, 5/10 at 100.00 A1 (4) 66,994
5.750%, 11/01/29 (Pre-refunded 5/01/10) - FGIC Insured
4,000 Puerto Rico Highway and Transportation Authority, Highway 7/12 at 100.00 AAA 4,443,040
Revenue Bonds, Series 2002D, 5.375%, 7/01/36 (Pre-refunded
7/01/12)
------------------------------------------------------------------------------------------------------------------------------------
19,100 Total U.S. Guaranteed 22,577,686
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 11.5% (7.5% OF TOTAL INVESTMENTS)
4,210 California Statewide Community Development Authority, 12/09 at 100.00 N/R 3,698,190
Certificates of Participation Refunding, Rio Bravo Fresno
Project, Series 1999A, 6.500%, 12/01/18 (5)
2,140 Long Beach Bond Finance Authority, California, Natural Gas No Opt. Call A 2,067,582
Purchase Revenue Bonds, Series 2007A, 5.500%, 11/15/37
725 Los Angeles Department of Water and Power, California, Power 7/13 at 100.00 AA- 776,620
System Revenue Bonds, Series 2003A-2, 5.000%, 7/01/21 -
NPFG Insured
500 Los Angeles Department of Water and Power, California, Power 7/15 at 100.00 AAA 508,565
System Revenue Bonds, Series 2005, 5.000%, 7/01/31 - FSA
Insured (UB)
715 Merced Irrigation District, California, Electric System 9/15 at 100.00 N/R 600,042
Revenue Bonds, Series 2005, 5.125%, 9/01/31 - SYNCORA GTY
Insured
10,450 Orange County Public Financing Authority, California, Waste No Opt. Call A1 10,845,532
Management System Revenue Refunding Bonds, Series 1997,
5.250%, 12/01/13 - AMBAC Insured (Alternative Minimum Tax)
1,000 Sacramento Municipal Utility District, California, Electric No Opt. Call A+ 1,022,060
Revenue Bonds, Series 2004T, 5.250%, 5/15/23 - FGIC Insured
500 Sacramento Municipal Utility District, California, Electric 8/12 at 100.00 AAA 516,955
Revenue Refunding Bonds, Series 2002Q, 5.250%, 8/15/22 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
20,240 Total Utilities 20,035,546
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 27
NCP | Nuveen California Performance Plus Municipal Fund, Inc. (continued)
| Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 14.1% (9.1% OF TOTAL INVESTMENTS)
$ 1,000 California Statewide Community Development Authority, Water 10/13 at 100.00 AAA $ 1,040,050
and Wastewater Revenue Bonds, Pooled Financing Program,
Series 2003A, 5.250%, 10/01/23 - FSA Insured
2,500 El Centro Financing Authority, California, Water Revenue 10/16 at 100.00 AAA 2,433,200
Bonds, Series 2006A, 4.750%, 10/01/31 - FSA Insured
4,770 Los Angeles Department of Water and Power, California, 7/14 at 100.00 AA 5,085,536
Waterworks Revenue Bonds, Series 2004C, 5.250%, 7/01/20 -
NPFG Insured
2,500 Pajaro Valley Water Management Agency, California, Revenue 9/09 at 101.00 BBB 2,482,625
Certificates of Participation, Series 1999A, 5.750%,
3/01/29 - AMBAC Insured
5,985 Sacramento County Sanitation District Financing Authority, 12/10 at 101.00 AA 6,320,639
California, Revenue Bonds, Series 2000A, 5.250%, 12/01/12
4,585 Santa Maria, California, Subordinate Water and Wastewater 8/12 at 101.00 N/R 4,605,541
Revenue Certificates of Participation, Series 1997A,
5.550%, 8/01/27 - AMBAC Insured
1,700 South Gate Utility Authority, California, Subordinate Revenue 10/11 at 102.00 A 1,663,688
Bonds, Water and Sewer System Projects, Series 2001,
5.000%, 10/01/22 - FGIC Insured
945 Woodbridge Irrigation District, California, Certificates of 7/13 at 100.00 A+ 838,149
Participation, Water Systems Project, Series 2003, 5.625%,
7/01/43
------------------------------------------------------------------------------------------------------------------------------------
23,985 Total Water and Sewer 24,469,428
------------------------------------------------------------------------------------------------------------------------------------
$ 280,215 Total Long-Term Investments (cost $273,349,898) - 153.4% 266,664,465
==================------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 1.1% (0.7% OF TOTAL INVESTMENTS)
WATER AND SEWER - 1.1% (0.7% OF TOTAL INVESTMENTS)
$ 1,995 Metropolitan Water District of Southern California, Water 11/09 at 100.00 A-1 1,995,000
Revenue Bonds, Variable Rate Demand
==================------------------------------------------------------------------------------------------------------------------
Obligations, Series 2008A-1, 0.240%, 7/01/37 (6)
------------------------------------------------------------------------------------------------------------------
Total Short-Term Investments (cost $1,995,000) 1,995,000
------------------------------------------------------------------------------------------------------------------
Total Investments (cost $275,344,898) - 154.5% 268,659,465
------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (4.1)% (7,105,000)
------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.0% 3,524,019
------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.4)% (7) (91,175,000)
------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 173,903,484
==================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call provisions
at varying prices at later dates. Certain mortgage-backed securities may
be subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be below investment
grade.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) This debt has been restructured to accommodate capital maintenance at the
facility. Major highlights of the debt restructuring include the
following: (1) the principal balance outstanding on and after December 1,
2007, shall accrue interest at a rate of 6.500% per annum commencing
December 1, 2007; (2) the interest shall accrue but not be payable on June
1, 2008 or December 1, 2008, but shall instead be deferred and paid by the
end of calendar year 2011; (3) no principal component shall be pre-payable
from the Minimum Sinking Fund Account during calendar years 2008 and 2009
but such pre-payments shall recommence beginning in calendar year 2010
according to a revised schedule. Management believes that the
restructuring is in the best interest of Fund shareholders and that it is
more-likely-than-not that the borrower will fulfill its obligation.
Consequently, the Fund continues to accrue interest on this obligation.
(6) Investment has a maturity of more than one year, but has a variable rate
and demand features which qualify it as a short-term investment. The rate
disclosed is that in effect at the end of the reporting period. This rate
changes periodically based on market conditions or a specified market
index.
(7) Preferred Shares, at Liquidation Value as a percentage of Total
Investments is 33.9%.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140. See Notes to
Financial Statements, Footnote 1 - Inverse Floating Rate Securities for
more information.
See accompanying notes to financial statements.
28 Nuveen Investments
NCO | Nuveen California Municipal Market Opportunity Fund, Inc
| Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 5.6% (3.8% OF TOTAL INVESTMENTS)
$ 355 California County Tobacco Securitization Agency, Tobacco 6/15 at 100.00 BBB $ 324,314
Settlement Asset-Backed Bonds, Sonoma County Tobacco
Securitization Corporation, Series 2005, 4.250%, 6/01/21
2,000 Golden State Tobacco Securitization Corporation, 6/17 at 100.00 BBB 1,560,020
California, Enhanced Tobacco Settlement Asset-Backed
Bonds, Series 2007A-1, 5.750%, 6/01/47
8,090 Golden State Tobacco Securitization Corporation, 6/22 at 100.00 BBB 4,261,812
California, Enhanced Tobacco Settlement Asset-Backed
Bonds, Series 2007A-2, 0.000%, 6/01/37
------------------------------------------------------------------------------------------------------------------------------------
10,445 Total Consumer Staples 6,146,146
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 4.0% (2.8% OF TOTAL
INVESTMENTS)
100 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 A3 92,721
University of Redlands, Series 2005A, 5.000%, 10/01/35
California Educational Facilities Authority, Revenue Bonds,
University of the Pacific, Series 2006:
70 5.000%, 11/01/21 11/15 at 100.00 A2 70,512
95 5.000%, 11/01/25 11/15 at 100.00 A2 92,025
1,000 California Infrastructure Economic Development Bond Bank, 7/15 at 100.00 Aa3 1,042,530
Revenue Bonds, Scripps Research Institute, Series 2005A,
5.000%, 7/01/24
1,680 California State Public Works Board, Lease Revenue Bonds, 3/18 at 100.00 Aa2 1,661,688
University of California Regents, Trust 1065, 9.041%,
3/01/33 (IF)
2,000 San Diego County, California, Certificates of 9/15 at 102.00 Baa3 1,515,620
Participation, Burnham Institute, Series 2006, 5.000%,
9/01/34
------------------------------------------------------------------------------------------------------------------------------------
4,945 Total Education and Civic Organizations 4,475,096
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 15.6% (10.7% OF TOTAL INVESTMENTS)
240 California Health Facilities Financing Authority, Revenue 4/16 at 100.00 A+ 213,722
Bonds, Kaiser Permanante System, Series 2006, 5.000%,
4/01/37
5,305 California Health Facilities Financing Authority, Revenue 11/16 at 100.00 Aa3 4,787,975
Bonds, Sutter Health, Series 2007A, 5.250%, 11/15/46 (UB)
3,200 California Infrastructure Economic Development Bank, 8/11 at 102.00 A+ 3,218,816
Revenue Bonds, Kaiser Hospital Assistance LLC, Series
2001A, 5.550%, 8/01/31
1,060 California Municipal Financing Authority, Certificates of 2/17 at 100.00 Baa2 830,075
Participation, Community Hospitals of Central
California, Series 2007, 5.250%, 2/01/46
569 California Statewide Communities Development Authority, 7/18 at 100.00 AAA 569,637
Revenue Bonds, Saint Joseph Health System, Trust 2554,
18.134%, 7/01/47 - FSA Insured (IF)
1,000 California Statewide Community Development Authority, 10/17 at 100.00 A 901,190
Insured Health Facility Revenue Bonds, Henry Mayo
Newhall Memorial Hospital, Series 2007A, 5.000%, 10/01/37
755 California Statewide Community Development Authority, 3/16 at 100.00 A+ 673,037
Revenue Bonds, Kaiser Permanante System, Series 2006,
5.000%, 3/01/41
135 California Statewide Community Development Authority, 8/16 at 100.00 A+ 130,726
Revenue Bonds, Kaiser Permanente System, Series 2001C,
5.250%, 8/01/31
675 California Statewide Community Development Authority, No Opt. Call A 664,133
Revenue Bonds, Sherman Oaks Health System, Series 1998A,
5.000%, 8/01/22 - AMBAC Insured
2,585 California Statewide Community Development Authority, 11/15 at 100.00 Aa3 2,239,670
Revenue Bonds, Sutter Health, Series 2005A, 5.000%,
11/15/43
1,150 Loma Linda, California, Hospital Revenue Bonds, Loma Linda 12/17 at 100.00 BBB 1,203,854
University Medical Center, Series 2008A, 8.250%, 12/01/38
1,000 Rancho Mirage Joint Powers Financing Authority, California, 7/17 at 100.00 A3 897,510
Revenue Bonds, Eisenhower Medical Center, Series 2007A,
5.000%, 7/01/38
1,000 The Regents of the University of California, Medical Center 5/15 at 101.00 Aa2 907,310
Pooled Revenue Bonds, Series 2007A, 4.500%, 5/15/37 -
NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
18,674 Total Health Care 17,237,655
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.2% (0.2% OF TOTAL INVESTMENTS)
240 California Housing Finance Agency, Home Mortgage Revenue 2/16 at 100.00 AA- 242,832
Bonds, Series 2006H, 5.750%, 8/01/30 - FGIC Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 29
NCO | Nuveen California Municipal Market Opportunity Fund, Inc. (continued)
| Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.6% (0.4% OF TOTAL INVESTMENTS)
$ 750 California Pollution Control Financing Authority, Solid 1/16 at 102.00 BBB $ 691,320
Waste Disposal Revenue Bonds, Waste Management Inc.,
Series 2002A, 5.000%, 1/01/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.0% (1.4% OF TOTAL INVESTMENTS)
2,900 California Statewide Communities Development Authority, 12/17 at 100.00 Ba1 2,265,045
Revenue Bonds, Inland Regional Center Project, Series
2007, 5.250%, 12/01/27
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 17.2% (11.8% OF TOTAL INVESTMENTS)
4,125 Alameda Unified School District, Alameda County, No Opt. Call AAA 1,665,510
California, General Obligation Bonds, Series 2004A,
0.000%, 8/01/25 - FSA Insured
1,350 Coachella Valley Unified School District, Riverside County, 8/15 at 100.00 A 1,315,764
California, General Obligation Bonds, Series 2005A,
5.000%, 8/01/30 - FGIC Insured
2,150 Los Rios Community College District, Sacramento, El Dorado 8/14 at 102.00 AAA 2,327,246
and Yolo Counties, California, General Obligation Bonds,
Series 2006C, 5.000%, 8/01/24 - FSA Insured (UB)
4,100 Monrovia Unified School District, Los Angeles County, No Opt. Call A+ 1,368,252
California, General Obligation Bonds, Series 2001B,
0.000%, 8/01/27 - FGIC Insured
2,500 Oakland Unified School District, Alameda County, 8/12 at 100.00 A 2,501,825
California, General Obligation Bonds, Series 2002,
5.250%, 8/01/21 - FGIC Insured
1,000 Pomona Unified School District, Los Angeles County, 8/11 at 103.00 A 1,117,470
California, General Obligation Refunding Bonds, Series
1997A, 6.150%, 8/01/15 - NPFG Insured
25 Riverside Community College District, California, General 8/14 at 100.00 AA- 26,886
Obligation Bonds, Series 2004A, 5.250%, 8/01/24 - NPFG
Insured
210 Roseville Joint Union High School District, Placer County, 8/15 at 100.00 AA- 215,613
California, General Obligation Bonds, Series 2006B,
5.000%, 8/01/27 - FGIC Insured
5,000 San Diego Unified School District, California, General 7/10 at 100.00 AA 5,170,250
Obligation Bonds, Election of 1998, Series 2000B,
5.125%, 7/01/21 - NPFG Insured
4,970 San Rafael City High School District, Marin County, No Opt. Call AA 1,756,597
California, General Obligation Bonds, Series 2004B,
0.000%, 8/01/27 - FGIC Insured
4,175 Southwestern Community College District, San Diego County, No Opt. Call AA- 1,615,266
California, General Obligation Bonds, Series 2004,
0.000%, 8/01/25 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
29,605 Total Tax Obligation/General 19,080,679
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 25.8% (17.7% OF TOTAL INVESTMENTS)
2,000 California State Public Works Board, Lease Revenue Bonds, 6/14 at 100.00 A- 2,051,580
Department of Mental Health, Coalinga State Hospital,
Series 2004A, 5.500%, 6/01/19
260 Capistrano Unified School District, Orange County, 9/15 at 100.00 A 240,578
California, Special Tax Bonds, Community Facilities
District, Series 2005, 5.000%, 9/01/24 - FGIC Insured
770 Chino Redevelopment Agency, California, Merged Chino 9/16 at 101.00 BBB 627,804
Redevelopment Project Area Tax Allocation Bonds, Series
2006, 5.000%, 9/01/38 - AMBAC Insured
1,035 Hawthorne Community Redevelopment Agency, California, 9/16 at 100.00 A- 885,318
Project Area 2 Tax Allocation Bonds, Series 2006,
5.250%, 9/01/36 - SYNCORA GTY Insured
Irvine, California, Unified School District, Community
Facilities District Special Tax Bonds, Series 2006A:
120 5.000%, 9/01/26 9/16 at 100.00 N/R 104,942
275 5.125%, 9/01/36 9/16 at 100.00 N/R 226,418
470 Los Angeles Community Redevelopment Agency, California, 9/15 at 100.00 A2 397,131
Lease Revenue Bonds, Manchester Social Services Project,
Series 2005, 5.000%, 9/01/37 - AMBAC Insured
Modesto Schools Infrastructure Financing Agency, Stanislaus
County, California, Special Tax Revenue Bonds, Series 2004:
1,375 5.250%, 9/01/25 - AMBAC Insured 9/14 at 100.00 N/R 1,203,111
1,500 5.250%, 9/01/26 - AMBAC Insured 9/14 at 100.00 N/R 1,300,440
10,900 Ontario Redevelopment Financing Authority, San Bernardino No Opt. Call A 12,549,931
County, California, Revenue Refunding Bonds,
Redevelopment Project 1, Series 1995, 7.400%, 8/01/25 -
NPFG Insured
1,000 Ontario, California, Special Tax Bonds, Community 9/09 at 100.00 N/R 954,860
Facilities District 5, Freeway Interchange Project,
Series 1997, 6.375%, 9/01/17
1,065 Panama-Buena Vista Union School District, California, 9/16 at 100.00 A 1,083,680
Certificates of Participation, School Construction
Project, Series 2006, 5.000%, 9/01/22 - NPFG Insured
30 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 225 Rialto Redevelopment Agency, California, Tax Allocation 9/15 at 100.00 A- $ 186,581
Bonds, Merged Project Area, Series 2005A, 5.000%,
9/01/35 - SYNCORA GTY Insured
280 Roseville, California, Certificates of Participation, Public 8/13 at 100.00 AA- 262,161
Facilities, Series 2003A, 5.000%, 8/01/25 - AMBAC Insured
2,500 Sacramento City Financing Authority, California, Lease No Opt. Call A 2,518,150
Revenue Refunding Bonds, Series 1993A, 5.400%, 11/01/20 -
AMBAC Insured
2,255 San Bernardino County, California, Certificates of 2/10 at 100.00 Baa1 2,250,761
Participation, Medical Center Financing Project, Series
1995, 5.500%, 8/01/22 - NPFG Insured
1,200 San Jose Financing Authority, California, Lease Revenue 9/11 at 100.00 AA+ 1,255,680
Refunding Bonds, Convention Center Project, Series 2001F,
5.000%, 9/01/20 - NPFG Insured
485 San Mateo Union High School District, San Mateo County, 12/17 at 100.00 N/R 422,353
California, Certificates of Participation, Phase 1,
Series 2007A, 5.000%, 12/15/30 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
27,715 Total Tax Obligation/Limited 28,521,479
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 25.4% (17.5% OF TOTAL INVESTMENTS)
1,355 Bay Area Toll Authority, California, Revenue Bonds, San 4/18 at 100.00 AA 1,535,910
Francisco Bay Area Toll Bridge, Series 2008, Trust 3211,
13.298%, 4/01/39 (IF)
4,000 Foothill/Eastern Transportation Corridor Agency, California, 1/14 at 101.00 BBB- 3,313,800
Toll Road Revenue Refunding Bonds, Series 1999, 5.875%,
1/15/29
8,500 Long Beach, California, Harbor Revenue Bonds, Series 2000A, 5/10 at 101.00 AA 8,718,790
5.750%, 5/15/14 (Alternative Minimum Tax)
5,210 Port of Oakland, California, Revenue Bonds, Series 2000K, 5/10 at 100.00 A1 5,184,940
5.750%, 11/01/29 - FGIC Insured
San Francisco Airports Commission, California, Revenue
Bonds, San Francisco International Airport, Second Series
2000, Issue 25:
2,515 5.500%, 5/01/24 - FSA Insured (Alternative Minimum Tax) 5/10 at 101.00 AAA 2,531,498
3,100 5.750%, 5/01/30 - FSA Insured (Alternative Minimum Tax) 5/10 at 101.00 AAA 3,125,575
1,250 San Francisco Airports Commission, California, Revenue 5/10 at 101.00 A1 1,263,487
Bonds, San Francisco International Airport, Second Series
2000, Issue 26B, 5.000%, 5/01/21 - FGIC Insured
2,465 San Francisco Airports Commission, California, Special 1/10 at 100.00 AAA 2,471,138
Facilities Lease Revenue Bonds, San Francisco
International Airport, SFO Fuel Company LLC, Series
2000A, 6.125%, 1/01/27 - FSA Insured (Alternative Minimum
Tax)
------------------------------------------------------------------------------------------------------------------------------------
28,395 Total Transportation 28,145,138
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 22.8% (15.6% OF TOTAL INVESTMENTS) (4)
110 California County Tobacco Securitization Agency, Tobacco 6/10 at 100.00 N/R (4) 113,067
Settlement Asset-Backed Bonds, Sonoma County Tobacco
Funding Corporation, Series 2002B, 5.125%, 6/01/20
(Pre-refunded 6/01/10)
3,000 California Department of Water Resources, Power Supply 5/12 at 101.00 Aaa 3,346,830
Revenue Bonds, Series 2002A, 5.125%, 5/01/18
(Pre-refunded 5/01/12)
25 California Department of Water Resources, Water System 12/11 at 100.00 AAA 27,608
Revenue Bonds, Central Valley Project, Series 2001W,
5.500%, 12/01/15 (Pre-refunded 12/01/11)
10 California Department of Water Resources, Water System No Opt. Call AAA 12,273
Revenue Bonds, Central Valley Project, Series 2002X,
5.500%, 12/01/17 - FGIC Insured (ETM)
2,100 California, General Obligation Bonds, Series 2004, 5.250%, 4/14 at 100.00 AAA 2,421,342
4/01/34 (Pre-refunded 4/01/14)
1,680 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 1,876,812
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.250%, 6/01/33 (Pre-refunded 6/01/13)
5,000 Los Angeles Unified School District, California, General 7/10 at 100.00 AA- (4) 5,209,500
Obligation Bonds, Series 2000D, 5.375%, 7/01/25
(Pre-refunded 7/01/10) - FGIC Insured
2,000 Monterey County, California, Certificates of Participation, 8/11 at 100.00 A3 (4) 2,161,640
Master Plan Financing, Series 2001, 5.000%, 8/01/21
(Pre-refunded 8/01/11) - MBIA Insured
875 Orange County Water District, California, Revenue 8/13 at 100.00 AAA 927,684
Certificates of Participation, Series 2003B, 5.000%,
8/15/34 - MBIA Insured (ETM)
4,000 Pomona, California, GNMA/FHLMC Collateralized Single Family No Opt. Call AAA 5,313,880
Mortgage Revenue Refunding Bonds, Series 1990B, 7.500%,
8/01/23 (ETM)
40 Port of Oakland, California, Revenue Bonds, Series 2000K, 5/10 at 100.00 A1 (4) 41,227
5.750%, 11/01/29 (Pre-refunded 5/01/10) - FGIC Insured
1,875 Riverside Community College District, California, General 8/14 at 100.00 AA- (4) 2,185,837
Obligation Bonds, Series 2004A, 5.250%, 8/01/24
(Pre-refunded 8/01/14) - MBIA Insured
Nuveen Investments 31
NCO | Nuveen California Municipal Market Opportunity Fund, Inc. (continued)
| Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 1,530 University of California, Certificates of Participation, San 1/10 at 101.00 Aa1 (4) $ 1,569,734
Diego and Sacramento Campus Projects, Series 2002A,
5.250%, 1/01/20 (Pre-refunded 1/01/10)
------------------------------------------------------------------------------------------------------------------------------------
22,245 Total U.S. Guaranteed 25,207,434
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 5.1% (3.5% OF TOTAL INVESTMENTS)
1,500 California Pollution Control Financing Authority, Revenue 9/09 at 101.00 A1 1,504,215
Refunding Bonds, Southern California Edison Company,
Series 1999A, 5.450%, 9/01/29 - NPFG Insured
2,815 California Statewide Community Development Authority, 12/09 at 100.00 N/R 2,472,780
Certificates of Participation Refunding, Rio Bravo Fresno
Project, Series 1999A, 6.500%, 12/01/18 (5)
1,365 Long Beach Bond Finance Authority, California, Natural Gas No Opt. Call A 1,318,808
Purchase Revenue Bonds, Series 2007A, 5.500%, 11/15/37
455 Merced Irrigation District, California, Electric System 9/15 at 100.00 N/R 381,845
Revenue Bonds, Series 2005, 5.125%, 9/01/31 - SYNCORA GTY
Insured
------------------------------------------------------------------------------------------------------------------------------------
6,135 Total Utilities 5,677,648
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 21.2% (14.6% OF TOTAL INVESTMENTS)
1,020 California Department of Water Resources, Water System No Opt. Call AAA 1,214,290
Revenue Bonds, Central Valley Project, Series 2002X,
5.500%, 12/01/17 - FGIC Insured
2,500 El Centro Financing Authority, California, Water Revenue 10/16 at 100.00 AAA 2,433,200
Bonds, Series 2006A, 4.750%, 10/01/31 - FSA Insured
750 Fortuna Public Finance Authority, California, Water Revenue 10/16 at 100.00 AAA 752,633
Bonds, Series 2006, 5.000%, 10/01/36 - FSA Insured
3,380 Orange County Sanitation District, California, Certificates 2/19 at 100.00 AAA 3,705,967
of Participation, Trust 11738, Series 2009, 17.272%,
2/01/35 (IF)
3,500 Placerville Public Financing Authority, California, 9/16 at 100.00 N/R 2,923,270
Wastewater System Refinancing and Improvement Project
Revenue Bonds, Series 2006, 5.000%, 9/01/34 - SYNCORA GTY
Insured
350 Sacramento County Sanitation District Financing Authority, 6/16 at 100.00 AA 354,372
California, Revenue Bonds, Series 2006, 5.000%,
12/01/31 - FGIC Insured
2,000 San Francisco City and County Public Utilities Commission, 4/13 at 100.00 A+ 2,073,160
California, Clean Water Revenue Refunding Bonds, Series
2003A, 5.250%, 10/01/20 - NPFG Insured
10,000 Santa Maria, California, Subordinate Water and Wastewater 8/12 at 101.00 N/R 10,044,800
Revenue Certificates of Participation, Series 1997A,
5.550%, 8/01/27 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
23,500 Total Water and Sewer 23,501,692
------------------------------------------------------------------------------------------------------------------------------------
$ 175,549 Total Investments (cost $164,195,374) - 145.5% 161,192,164
==================------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (3.9)% (4,285,000)
------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.4% 2,633,727
------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (44.0)% (6) (48,775,000)
------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 110,765,891
==================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call provisions
at varying prices at later dates. Certain mortgage-backed securities may
be subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be below investment
grade.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) This debt has been restructured to accommodate capital maintenance at the
facility. Major highlights of the debt restructuring include the
following: (1) the principal balance outstanding on and after December 1,
2007, shall accrue interest at a rate of 6.500% per annum commencing
December 1, 2007; (2) the interest shall accrue but not be payable on June
1, 2008 or December 1, 2008, but shall instead be deferred and paid by the
end of calendar year 2011; (3) no principal component shall be pre-payable
from the Minimum Sinking Fund Account during calendar years 2008 and 2009
but such pre-payments shall recommence beginning in calendar year 2010
according to a revised schedule. Management believes that the
restructuring is in the best interest of Fund shareholders and that it is
more-likely-than-not that the borrower will fulfill its obligation.
Consequently, the Fund continues to accrue interest on this obligation.
(6) Preferred Shares, at Liquidation Value as a percentage of Total
Investments is 30.3%
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140. See Notes to
Financial Statements, Footnote 1 - Inverse Floating Rate Securities for
more information.
See accompanying notes to financial statements.
32 Nuveen Investments
NQC | Nuveen California Investment Quality Municipal Fund, Inc.
| Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 5.9% (3.8% OF TOTAL INVESTMENTS) California
County Tobacco Securitization Agency, Tobacco Settlement
Asset-Backed Bonds, Sonoma County Tobacco Securitization
Corporation, Series 2005:
$ 585 4.250%, 6/01/21 6/15 at 100.00 BBB $ 534,433
3,500 5.250%, 6/01/45 6/15 at 100.00 BBB 2,473,345
2,000 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 1,560,020
Enhanced Tobacco Settlement Asset-Backed Bonds, Series
2007A-1, 5.750%, 6/01/47
6,740 Golden State Tobacco Securitization Corporation, California, 6/22 at 100.00 BBB 3,550,632
Enhanced Tobacco Settlement Asset-Backed Bonds, Series
2007A-2, 0.000%, 6/01/37
3,500 Tobacco Securitization Authority of Northern California, 6/15 at 100.00 BBB 2,711,240
Tobacco Settlement Asset-Backed Bonds, Series 2005A-1,
5.375%, 6/01/38
------------------------------------------------------------------------------------------------------------------------------------
16,325 Total Consumer Staples 10,829,670
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 15.6% (10.0% OF TOTAL
INVESTMENTS)
3,000 California Educational Facilities Authority, Revenue Bonds, 12/16 at 100.00 Baa3 2,212,170
Dominican University, Series 2006, 5.000%, 12/01/36
2,000 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 Aa3 2,053,700
Occidental College, Series 2005A, 5.000%, 10/01/27 - NPFG
Insured
170 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 A3 157,626
University of Redlands, Series 2005A, 5.000%, 10/01/35
930 California Educational Facilities Authority, Revenue Bonds, 11/10 at 100.00 A2 934,594
University of the Pacific, Series 2000, 5.750%,
11/01/30 - NPFG Insured
California Educational Facilities Authority, Revenue Bonds,
University of the Pacific, Series 2006:
120 5.000%, 11/01/21 11/15 at 100.00 A2 120,878
160 5.000%, 11/01/25 11/15 at 100.00 A2 154,989
6,000 California State Public Works Board, Lease Revenue Bonds, 10/09 at 100.00 A1 5,999,700
California State University Projects, Series 1997C,
5.400%, 10/01/22
2,798 California State Public Works Board, Lease Revenue Bonds, 3/18 at 100.00 Aa2 2,767,502
University of California Regents, Trust 1065, 9.041%,
3/01/33 (IF)
2,500 Long Beach Bond Financing Authority, California, Lease 11/11 at 101.00 BBB 2,213,850
Revenue Refunding Bonds, Long Beach Aquarium of the South
Pacific, Series 2001, 5.250%, 11/01/30 - AMBAC Insured
University of California, Revenue Bonds, Multi-Purpose
Projects, Series 2003A:
4,270 5.125%, 5/15/16 - AMBAC Insured (UB) 5/13 at 100.00 AA 4,624,453
3,000 5.125%, 5/15/17 - AMBAC Insured (UB) 5/13 at 100.00 AA 3,220,560
1,060 5.000%, 5/15/24 - AMBAC Insured (UB) 5/13 at 100.00 AA 1,092,902
3,000 5.000%, 5/15/33 - AMBAC Insured (UB) 5/13 at 100.00 AA 3,024,990
------------------------------------------------------------------------------------------------------------------------------------
29,008 Total Education and Civic Organizations 28,577,914
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 12.8% (8.1% OF TOTAL INVESTMENTS)
3,000 California Health Facilities Financing Authority, Revenue 7/14 at 100.00 A 2,976,480
Bonds, Catholic Healthcare West, Series 2004G, 5.250%,
7/01/23
California Health Facilities Financing Authority, Revenue
Bonds, Kaiser Permanante System, Series 2006:
390 5.000%, 4/01/37 4/16 at 100.00 A+ 347,299
2,355 5.250%, 3/01/45 3/16 at 100.00 A+ 2,184,262
7,765 California Health Facilities Financing Authority, Revenue 11/16 at 100.00 Aa3 7,008,223
Bonds, Sutter Health, Series 2007A, 5.250%, 11/15/46 (UB)
1,750 California Municipal Financing Authority, Certificates of 2/17 at 100.00 Baa2 1,370,407
Participation, Community Hospitals of Central California,
Series 2007, 5.250%, 2/01/46
948 California Statewide Communities Development Authority, 7/18 at 100.00 AAA 948,561
Revenue Bonds, Saint Joseph Health System, Trust 2554,
18.134%, 7/01/47 - FSA Insured (IF)
1,245 California Statewide Community Development Authority, 3/16 at 100.00 A+ 1,109,843
Revenue Bonds, Kaiser Permanante System, Series 2006,
5.000%, 3/01/41
Nuveen Investments 33
NQC | Nuveen California Investment Quality Municipal Fund, Inc. (continued)
| Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 1,840 California Statewide Community Development Authority, 8/16 at 100.00 A+ $ 1,781,746
Revenue Bonds, Kaiser Permanente System, Series 2001C,
5.250%, 8/01/31
4,270 California Statewide Community Development Authority, 11/15 at 100.00 Aa3 3,699,571
Revenue Bonds, Sutter Health, Series 2005A, 5.000%,
11/15/43
1,785 Loma Linda, California, Hospital Revenue Bonds, Loma Linda 12/17 at 100.00 BBB 1,868,592
University Medical Center, Series 2008A, 8.250%, 12/01/38
------------------------------------------------------------------------------------------------------------------------------------
25,348 Total Health Care 23,294,984
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 1.3% (0.8% OF TOTAL INVESTMENTS)
385 California Housing Finance Agency, Home Mortgage Revenue 2/16 at 100.00 AA- 389,543
Bonds, Series 2006H, 5.750%, 8/01/30 - FGIC Insured
(Alternative Minimum Tax)
1,985 California Housing Finance Agency, Home Mortgage Revenue 2/16 at 100.00 AA- 1,959,453
Bonds, Series 2006K, 5.500%, 2/01/42 (Alternative Minimum
Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,370 Total Housing/Single Family 2,348,996
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.6% (0.4% OF TOTAL INVESTMENTS)
1,250 California Pollution Control Financing Authority, Solid 1/16 at 102.00 BBB 1,152,200
Waste Disposal Revenue Bonds, Waste Management Inc.,
Series 2002A, 5.000%, 1/01/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 3.0% (1.9% OF TOTAL INVESTMENTS)
4,750 California Statewide Communities Development Authority, 12/17 at 100.00 Ba1 3,428,075
Revenue Bonds, Inland Regional Center Project, Series
2007, 5.375%, 12/01/37
2,190 California Statewide Community Development Authority, 10/09 at 101.00 BBB 2,107,459
Certificates of Participation, Internext Group, Series
1999, 5.375%, 4/01/17
------------------------------------------------------------------------------------------------------------------------------------
6,940 Total Long-Term Care 5,535,534
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 10.0% (6.3% OF TOTAL INVESTMENTS)
10,060 Los Angeles, California, General Obligation Bonds, Series 9/11 at 100.00 AA 10,631,710
2001A, 5.000%, 9/01/21
3,250 Puerto Rico, General Obligation and Public Improvement No Opt. Call A 3,284,092
Bonds, Series 2001A, 5.500%, 7/01/20 - NPFG Insured
20 Riverside Community College District, California, General 8/14 at 100.00 AA- 21,942
Obligation Bonds, Series 2004A, 5.250%, 8/01/21 - NPFG
Insured
345 Roseville Joint Union High School District, Placer County, 8/15 at 100.00 AA- 354,222
California, General Obligation Bonds, Series 2006B,
5.000%, 8/01/27 - FGIC Insured
3,500 San Diego Unified School District, San Diego County, 7/13 at 101.00 AAA 3,914,190
California, General Obligation Bonds, Series 2003E,
5.250%, 7/01/24 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
17,175 Total Tax Obligation/General 18,206,156
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 42.2% (26.9% OF TOTAL INVESTMENTS)
3,000 California State Public Works Board, Lease Revenue Bonds, 6/14 at 100.00 A- 3,063,120
Department of Mental Health, Coalinga State Hospital,
Series 2004A, 5.500%, 6/01/20
3,000 California State Public Works Board, Lease Revenue Bonds, 12/11 at 102.00 A- 2,944,830
Department of Mental Health, Hospital Addition, Series
2001A, 5.000%, 12/01/21 - AMBAC Insured
2,350 California, Economic Recovery Revenue Bonds, Series 2004A, 7/14 at 100.00 A 2,558,797
5.000%, 7/01/15
425 Capistrano Unified School District, Orange County, 9/15 at 100.00 A 393,252
California, Special Tax Bonds, Community Facilities
District, Series 2005, 5.000%, 9/01/24 - FGIC Insured
1,595 Fontana Public Financing Authority, California, Tax 9/11 at 101.00 A+ 1,520,147
Allocation Revenue Bonds, North Fontana Redevelopment
Project, Series 2003A, 5.375%, 9/01/25 - AMBAC Insured
Golden State Tobacco Securitization Corporation, California,
Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A,
Trust 2215-1:
1,175 13.090%, 6/01/38 - FGIC Insured (IF) 6/15 at 100.00 A- 621,904
825 13.090%, 6/01/45 - FGIC Insured (IF) 6/15 at 100.00 A- 371,316
10,455 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 A- 9,017,333
Tobacco Settlement Asset-Backed Revenue Bonds, Series
2005A, 5.000%, 6/01/45 - AMBAC Insured
1,770 Hawthorne Community Redevelopment Agency, California, 9/16 at 100.00 A- 1,605,779
Project Area 2 Tax Allocation Bonds, Series 2006, 5.000%,
9/01/26 - SYNCORA GTY Insured
34 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 3,840 Hesperia Community Redevelopment Agency, California, Tax 9/15 at 100.00 Baa1 $ 2,896,666
Allocation Bonds, Series 2005A, 5.000%, 9/01/35 - SYNCORA
GTY Insured
Irvine, California, Unified School District, Community
Facilities District Special Tax Bonds, Series 2006A:
195 5.000%, 9/01/26 9/16 at 100.00 N/R 170,531
445 5.125%, 9/01/36 9/16 at 100.00 N/R 366,386
770 Los Angeles Community Redevelopment Agency, California, 9/15 at 100.00 A2 650,619
Lease Revenue Bonds, Manchester Social Services Project,
Series 2005, 5.000%, 9/01/37 - AMBAC Insured
10,000 Los Angeles County Public Works Financing Authority, 9/16 at 100.00 A 8,854,100
California, Lease Revenue Bonds, Series 2006B, 5.000%,
9/01/31 - FGIC Insured
4,130 Manteca Unified School District, San Joaquin County, 9/11 at 101.00 A 4,212,765
California, Special Tax Bonds, Community Facilities
District 89-2, Series 2001C, 5.000%, 9/01/23 - NPFG
Insured
3,890 Ontario Redevelopment Financing Authority, California, Lease 8/11 at 101.00 A+ 4,044,433
Revenue Bonds, Capital Projects, Series 2001, 5.000%,
8/01/21 - AMBAC Insured
3,600 Ontario Redevelopment Financing Authority, San Bernardino No Opt. Call A 4,144,932
County, California, Revenue Refunding Bonds,
Redevelopment Project 1, Series 1995, 7.400%, 8/01/25 -
NPFG Insured
1,685 Ontario, California, Special Tax Bonds, Community Facilities 9/09 at 100.00 N/R 1,608,939
District 5, Freeway Interchange Project, Series 1997,
6.375%, 9/01/17
1,500 Orange County, California, Special Tax Bonds, Community 8/12 at 101.00 N/R 1,333,875
Facilities District 03-1 of Ladera Ranch, Series 2004A,
5.625%, 8/15/34
1,000 Paramount Redevelopment Agency, California, Tax Allocation 8/13 at 100.00 A 929,680
Bonds, Redevelopment Project Area 1, Series 2003, 5.000%,
8/01/23 - NPFG Insured
370 Rialto Redevelopment Agency, California, Tax Allocation 9/15 at 100.00 A- 306,822
Bonds, Merged Project Area, Series 2005A, 5.000%,
9/01/35 - SYNCORA GTY Insured
2,000 Rohnert Park Community Development Commission, California, 8/17 at 100.00 A 1,637,760
Redevelopment Project Tax Allocation Bonds, Series 2007R,
5.000%, 8/01/37 - FGIC Insured
460 Roseville, California, Certificates of Participation, Public 8/13 at 100.00 AA- 430,693
Facilities, Series 2003A, 5.000%, 8/01/25 - AMBAC Insured
4,000 Sacramento City Financing Authority, California, Lease No Opt. Call A 4,029,040
Revenue Refunding Bonds, Series 1993A, 5.400%, 11/01/20 -
AMBAC Insured
2,000 San Jose Financing Authority, California, Lease Revenue 6/12 at 100.00 AA+ 2,128,620
Refunding Bonds, Civic Center Project, Series 2002B,
5.250%, 6/01/19 - AMBAC Insured
3,535 San Jose Financing Authority, California, Lease Revenue 9/11 at 100.00 AA+ 3,699,024
Refunding Bonds, Convention Center Project, Series 2001F,
5.000%, 9/01/20 - NPFG Insured
6,000 San Ramon Public Financing Authority, California, Tax 2/16 at 100.00 A- 4,899,600
Allocation Revenue Bonds, Series 2006A, 5.000%, 2/01/38 -
AMBAC Insured
2,840 Santa Clara Redevelopment Agency, California, Tax Allocation 6/13 at 100.00 A 2,674,740
Bonds, Bayshore North Project, Series 2003, 5.000%,
6/01/23 - NPFG Insured
5,250 Santa Cruz County Redevelopment Agency, California, 9/10 at 102.00 A 4,935,945
Subordinate Lien Tax Allocation Bonds, Live Oak and
Soquel Community Improvement Projects, Series 2000,
5.250%, 9/01/25 - AMBAC Insured
1,265 Washington Unified School District, Yolo County, California, 8/17 at 100.00 BBB+ 1,128,380
Certificates of Participation, Series 2007, 5.125%,
8/01/37 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
83,370 Total Tax Obligation/Limited 77,180,028
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 30.7% (19.5% OF TOTAL INVESTMENTS)
13,000 Alameda Corridor Transportation Authority, California, 10/09 at 101.00 A 13,004,550
Senior Lien Revenue Bonds, Series 1999A, 5.000%, 10/01/29
- NPFG Insured
2,080 Bay Area Toll Authority, California, Revenue Bonds, San 4/16 at 100.00 AA 2,123,160
Francisco Bay Area Toll Bridge, Series 2006F, 5.000%,
4/01/31 (UB)
1,325 Bay Area Toll Authority, California, Revenue Bonds, San 4/18 at 100.00 AA 1,501,905
Francisco Bay Area Toll Bridge, Series 2008, Trust 3211,
13.298%, 4/01/39 (IF)
6,500 Foothill/Eastern Transportation Corridor Agency, California, 1/14 at 101.00 BBB- 5,384,925
Toll Road Revenue Refunding Bonds, Series 1999, 5.875%,
1/15/29
Nuveen Investments 35
NQC | Nuveen California Investment Quality Municipal Fund, Inc. (continued)
| Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION (continued)
$ 9,980 Long Beach, California, Harbor Revenue Bonds, Series 2000A, 5/10 at 101.00 AA $ 10,028,802
5.500%, 5/15/25 (Alternative Minimum Tax)
8,930 Port of Oakland, California, Revenue Bonds, Series 2000K, 5/10 at 100.00 A1 8,887,047
5.750%, 11/01/29 - FGIC Insured
15,000 San Francisco Airports Commission, California, Revenue 5/10 at 101.00 AAA 15,123,747
Bonds, San Francisco International Airport, Second Series
2000, Issue 24A, 5.750%, 5/01/30 - FSA Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
56,815 Total Transportation 56,054,136
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 22.7% (14.5% OF TOTAL INVESTMENTS) (4)
6,000 California Department of Water Resources, Power Supply 5/12 at 101.00 Aaa 6,693,660
Revenue Bonds, Series 2002A, 5.125%, 5/01/18
(Pre-refunded 5/01/12)
30 California Department of Water Resources, Water System 12/11 at 100.00 Aa2 (4) 33,129
Revenue Bonds, Central Valley Project, Series 2001W,
5.500%, 12/01/16 (Pre-refunded 12/01/11)
2,070 California Educational Facilities Authority, Revenue Bonds, 11/10 at 100.00 A2 (4) 2,197,098
University of the Pacific, Series 2000, 5.750%, 11/01/30
(Pre-refunded 11/01/10) - MBIA Insured
2,110 California Health Facilities Financing Authority, Revenue 10/09 at 100.50 AAA 2,138,168
Bonds, Kaiser Permanente System, Series 1998B, 5.250%,
10/01/12 (ETM)
3,145 California, General Obligation Bonds, Series 2004, 5.250%, 4/14 at 100.00 AAA 3,626,248
4/01/34 (Pre-refunded 4/01/14)
5,300 California, Various Purpose General Obligation Bonds, Series 3/10 at 101.00 AAA 5,490,959
2000, 5.750%, 3/01/27 (Pre-refunded 3/01/10) - NPFG
Insured
2,000 Daly City Housing Development Finance Agency, California, 12/13 at 102.00 N/R (4) 2,379,040
Mobile Home Park Revenue Bonds, Franciscan Mobile Home
Park Project, Series 2002A, 5.850%, 12/15/32
(Pre-refunded 12/15/13)
690 Los Angeles Community Redevelopment Agency, California, Tax 1/10 at 100.00 BBB (4) 696,762
Allocation Refunding Bonds, Central Business District
Redevelopment Project, Series 1987G, 6.750%, 7/01/10 (ETM)
Los Angeles County Metropolitan Transportation Authority,
California, Proposition C Second Senior Lien Sales Tax Revenue
Bonds, Series 2000A:
8,005 5.250%, 7/01/25 (Pre-refunded 7/01/10) - FGIC Insured 7/10 at 101.00 AA (4) 8,411,894
1,500 5.250%, 7/01/30 (Pre-refunded 7/01/10) - FGIC Insured 7/10 at 101.00 AA (4) 1,576,245
2,285 Moreno Valley Unified School District, Riverside County, 8/14 at 100.00 AAA 2,667,326
California, General Obligation Bonds, Series 2004A,
5.250%, 8/01/24 (Pre-refunded 8/01/14) - FSA Insured
70 Port of Oakland, California, Revenue Bonds, Series 2000K, 5/10 at 100.00 A1 (4) 72,147
5.750%, 11/01/29 (Pre-refunded 5/01/10) - FGIC Insured
4,000 Puerto Rico Highway and Transportation Authority, Highway 7/12 at 100.00 AAA 4,443,040
Revenue Bonds, Series 2002D, 5.375%, 7/01/36
(Pre-refunded 7/01/12)
1,000 Tobacco Securitization Authority of Southern California, 6/12 at 100.00 AAA 1,111,780
Tobacco Settlement Asset-Backed Bonds, San Diego County
Tobacco Asset Securitization Corporation, Senior Series
2001A, 5.500%, 6/01/36 (Pre-refunded 6/01/12)
------------------------------------------------------------------------------------------------------------------------------------
38,205 Total U.S. Guaranteed 41,537,496
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 3.4% (2.1% OF TOTAL INVESTMENTS)
2,250 Long Beach Bond Finance Authority, California, Natural Gas No Opt. Call A 2,173,860
Purchase Revenue Bonds, Series 2007A, 5.500%, 11/15/37
740 Merced Irrigation District, California, Electric System 9/15 at 100.00 N/R 621,023
Revenue Bonds, Series 2005, 5.125%, 9/01/31 - SYNCORA GTY
Insured
3,210 Turlock Irrigation District, California, Electric Revenue 1/13 at 100.00 A+ 3,359,072
Bonds, Series 2003A, 5.000%, 1/01/16 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
6,200 Total Utilities 6,153,955
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 7.6% (4.8% OF TOTAL INVESTMENTS)
3,300 California Department of Water Resources, Water System 12/11 at 100.00 AAA 3,582,909
Revenue Bonds, Central Valley Project, Series 2001W,
5.500%, 12/01/16
520 Healdsburg Public Financing Authority, California, 4/16 at 100.00 AA- 497,156
Wastewater Revenue Bonds, Series 2006, 5.000%, 4/01/36 -
NPFG Insured
1,500 Los Angeles Department of Water and Power, California, 7/14 at 100.00 AA 1,612,965
Waterworks Revenue Bonds, Series 2004C, 5.250%, 7/01/19 -
NPFG Insured
3,015 Oxnard Financing Authority, California, Wastewater Revenue 6/13 at 100.00 A+ 3,292,591
Bonds, Series 2003, 5.000%, 6/01/17 - FGIC Insured
36 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 1,310 San Elijo Joint Powers Authority, San Diego County, 3/12 at 101.00 AAA $ 1,416,660
California, Revenue Refunding Bonds, San Elijo Wastewater
Facilities, Series 2003, 5.000%, 3/01/17 - FSA Insured
3,430 Westlands Water District, California, Revenue Certificates 9/12 at 101.00 A+ 3,486,835
of Participation, Series 2002, 5.250%, 9/01/22 - NPFG
Insured
------------------------------------------------------------------------------------------------------------------------------------
13,075 Total Water and Sewer 13,889,116
------------------------------------------------------------------------------------------------------------------------------------
$ 296,081 Total Long-Term Investments (cost $290,526,067) - 155.8% 284,760,185
==================------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 1.4% (0.9% OF TOTAL INVESTMENTS)
WATER AND SEWER - 1.4% (0.9% OF TOTAL INVESTMENTS)
$ 2,495 Metropolitan Water District of Southern California, Water 11/09 at 100.00 A-1 2,495,000
Revenue Bonds, Variable Rate Demand Obligations, Series
2008A-1, 0.240%, 7/01/37 (5)
==================------------------------------------------------------------------------------------------------------------------
Total Short-Term Investments (cost $2,495,000) 2,495,000
------------------------------------------------------------------------------------------------------------------
Total Investments (cost $293,021,067) - 157.2% 287,255,185
------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (7.8)% (14,230,000)
------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.6% 4,582,081
------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.0)% (6) (94,925,000)
------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 182,682,266
==================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call provisions
at varying prices at later dates. Certain mortgage-backed securities may
be subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be below investment
grade.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) Investment has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term investment. The rate
disclosed is that in effect at the end of the reporting period. This rate
changes periodically based on market conditions or a specified market
index.
(6) Preferred shares, at Liquidation Value as a percentage of Total
Investments is 33.0%.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140. See Notes to
Financial Statements, Footnote 1 - Inverse Floating Rate Securities for
more information.
See accompanying notes to financial statements.
Nuveen Investments 37
NVC | Nuveen California Select Quality Municipal Fund, Inc.
| Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 6.7% (4.4% OF TOTAL INVESTMENTS)
$ 1,000 California County Tobacco Securitization Agency, Tobacco 6/15 at 100.00 BBB $ 913,560
Settlement Asset-Backed Bonds, Sonoma County Tobacco
Securitization Corporation, Series 2005, 4.250%, 6/01/21
4,510 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 Baa3 3,587,164
Settlement Asset-Backed Bonds, Stanislaus County Tobacco
Funding Corporation, Series 2002A, 5.500%, 6/01/33
6,000 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 4,680,060
Enhanced Tobacco Settlement Asset-Backed Bonds, Series
2007A-1, 5.750%, 6/01/47
22,915 Golden State Tobacco Securitization Corporation, California, 6/22 at 100.00 BBB 12,071,621
Enhanced Tobacco Settlement Asset-Backed Bonds, Series
2007A-2, 0.000%, 6/01/37
------------------------------------------------------------------------------------------------------------------------------------
34,425 Total Consumer Staples 21,252,405
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 5.1% (3.3% OF TOTAL
INVESTMENTS)
290 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 A3 268,891
University of Redlands, Series 2005A, 5.000%, 10/01/35
535 California Educational Facilities Authority, Revenue Bonds, 10/18 at 100.00 AA+ 586,713
University of Southern California, Tender Option Bond
Trust 09-11B, 16.819%, 10/01/38 (IF)
California Educational Facilities Authority, Revenue Bonds,
University of the Pacific, Series 2006:
200 5.000%, 11/01/21 11/15 at 100.00 A2 201,464
270 5.000%, 11/01/25 11/15 at 100.00 A2 261,544
1,595 California Infrastructure Economic Development Bank, Revenue 10/12 at 100.00 Aa3 1,617,378
Bonds, Claremont University Consortium, Series 2003,
5.125%, 10/01/24
1,740 California Infrastructure Economic Development Bond Bank, 7/15 at 100.00 Aa3 1,814,002
Revenue Bonds, Scripps Research Institute, Series 2005A,
5.000%, 7/01/24
4,787 California State Public Works Board, Lease Revenue Bonds, 3/18 at 100.00 AA- 4,734,822
University of California Regents, Trust 1065, 9.041%,
3/01/33 (IF)
1,385 California State University, Systemwide Revenue Bonds, 11/15 at 100.00 Aa3 1,401,024
Series 2005C, 5.000%, 11/01/27 - NPFG Insured
5,000 University of California, Revenue Bonds, Multi-Purpose 5/13 at 100.00 AA 5,041,650
Projects, Series 2003A, 5.000%, 5/15/33 - AMBAC Insured
(UB)
------------------------------------------------------------------------------------------------------------------------------------
15,802 Total Education and Civic Organizations 15,927,488
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 20.2% (13.1% OF TOTAL INVESTMENTS)
1,750 ABAG Finance Authority for Non-Profit Corporations, 4/12 at 100.00 A 1,759,642
California, Cal-Mortgage Insured Revenue Bonds,
Sansum-Santa Barbara Medical Foundation Clinic, Series
2002A, 5.500%, 4/01/21
545 California Health Facilities Financing Authority, Insured 1/10 at 100.00 A2 540,744
Health Facility Revenue Refunding Bonds, Catholic
Healthcare West, Series 1994A, 4.750%, 7/01/19 - NPFG
Insured
675 California Health Facilities Financing Authority, Revenue 4/16 at 100.00 A+ 601,094
Bonds, Kaiser Permanante System, Series 2006, 5.000%,
4/01/37
15,145 California Health Facilities Financing Authority, Revenue 11/16 at 100.00 Aa3 13,668,968
Bonds, Sutter Health, Series 2007A, 5.250%, 11/15/46 (UB)
4,200 California Statewide Communities Development Authority, 3/15 at 100.00 A 3,674,790
Revenue Bonds, Adventist Health System West, Series
2005A, 5.000%, 3/01/35
1,621 California Statewide Communities Development Authority, 7/18 at 100.00 AAA 1,622,815
Revenue Bonds, Saint Joseph Health System, Trust 2554,
18.134%, 7/01/47 - FSA Insured (IF)
10,000 California Statewide Community Development Authority, 7/15 at 100.00 BBB 7,578,900
Revenue Bonds, Daughters of Charity Health System, Series
2005A, 5.000%, 7/01/39
9,435 California Statewide Community Development Authority, 3/16 at 100.00 A+ 8,410,736
Revenue Bonds, Kaiser Permanante System, Series 2006,
5.000%, 3/01/41
3,140 California Statewide Community Development Authority, 8/16 at 100.00 A+ 3,040,588
Revenue Bonds, Kaiser Permanente System, Series 2001C,
5.250%, 8/01/31
1,355 California Statewide Community Development Authority, No Opt. Call A 1,333,184
Revenue Bonds, Sherman Oaks Health System, Series 1998A,
5.000%, 8/01/22 - AMBAC Insured
38 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 5,475 California Statewide Community Development Authority, 11/16 at 100.00 Aa3 $ 3,699,239
Revenue Bonds, Sutter Health, Tender Option Bond Trust
3046, 12.220%, 11/15/46 (IF)
3,100 Loma Linda, California, Hospital Revenue Bonds, Loma Linda 12/17 at 100.00 BBB 3,245,173
University Medical Center, Series 2008A, 8.250%, 12/01/38
6,000 Madera County, California, Certificates of Participation, 9/09 at 100.00 A 5,736,540
Valley Children's Hospital Project, Series 1995, 5.750%,
3/15/28 - NPFG Insured
9,655 Rancho Mirage Joint Powers Financing Authority, California, 7/17 at 100.00 A3 8,665,459
Revenue Bonds, Eisenhower Medical Center, Series 2007A,
5.000%, 7/01/38
------------------------------------------------------------------------------------------------------------------------------------
72,096 Total Health Care 63,577,872
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.6% (1.0% OF TOTAL INVESTMENTS)
1,000 Independent Cities Lease Finance Authority, California, 11/14 at 100.00 N/R 798,220
Revenue Bonds, Morgan Hill, Hacienda Valley Mobile Home
Park, Series 2004A, 5.950%, 11/15/39
4,750 Montclair Redevelopment Agency, California, Revenue Bonds, 12/10 at 102.00 N/R 4,131,502
Monterey Manor Mobile Home Estates Project, Series 2000,
6.400%, 12/15/30
------------------------------------------------------------------------------------------------------------------------------------
5,750 Total Housing/Multifamily 4,929,722
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.2% (0.1% OF TOTAL INVESTMENTS)
670 California Housing Finance Agency, Home Mortgage Revenue 2/16 at 100.00 AA- 677,906
Bonds, Series 2006H, 5.750%, 8/01/30 - FGIC Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.8% (1.2% OF TOTAL INVESTMENTS)
4,055 California Pollution Control Financing Authority, Solid No Opt. Call BBB 3,937,162
Waste Disposal Revenue Bonds, Republic Services Inc.,
Series 2002C, 5.250%, 6/01/23 (Mandatory put 12/01/17)
(Alternative Minimum Tax)
2,000 California Pollution Control Financing Authority, Solid 1/16 at 102.00 BBB 1,843,520
Waste Disposal Revenue Bonds, Waste Management Inc.,
Series 2002A, 5.000%, 1/01/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
6,055 Total Industrials 5,780,682
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.0% (0.7% OF TOTAL INVESTMENTS)
California Statewide Communities Development Authority,
Revenue Bonds, Inland Regional Center Project, Series 2007:
460 5.250%, 12/01/27 12/17 at 100.00 Ba1 359,283
4,000 5.375%, 12/01/37 12/17 at 100.00 Ba1 2,886,800
------------------------------------------------------------------------------------------------------------------------------------
4,460 Total Long-Term Care 3,246,083
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 15.0% (9.8% OF TOTAL INVESTMENTS)
5,000 California, General Obligation Bonds, Series 2003, 5.250%, 8/13 at 100.00 A 5,144,850
2/01/22
250 California, Various Purpose General Obligation Bonds, Series 5/10 at 101.00 Aaa 254,335
2000, 5.625%, 5/01/22 - FGIC Insured
3,850 Coachella Valley Unified School District, Riverside County, 8/15 at 100.00 A 3,752,364
California, General Obligation Bonds, Series 2005A,
5.000%, 8/01/30 - FGIC Insured
Fontana Unified School District, San Bernardino County,
California, General Obligation Bonds, Series 2004:
1,470 5.250%, 5/01/19 - NPFG Insured 5/14 at 100.00 A+ 1,581,382
1,040 5.250%, 5/01/20 - NPFG Insured 5/14 at 100.00 A+ 1,110,481
4,000 Long Beach Community College District, California, General 5/15 at 100.00 AA- 4,054,880
Obligation Bonds, Series 2005B, 5.000%, 5/01/30 - FGIC
Insured
10,060 Los Angeles, California, General Obligation Bonds, Series 9/11 at 100.00 AA 10,631,710
2001A, 5.000%, 9/01/20
Los Rios Community College District, Sacramento, El Dorado
and Yolo Counties, California, General Obligation Bonds,
2006C:
2,710 5.000%, 8/01/25 - FSA Insured (UB) 8/14 at 102.00 AAA 2,898,399
3,875 5.000%, 8/01/26 - FSA Insured (UB) 8/14 at 102.00 AAA 4,101,223
6,000 North Orange County Community College District, California, No Opt. Call AA 2,118,420
General Obligation Bonds, Series 2003B, 0.000%, 8/01/27 -
FGIC Insured
5,000 Puerto Rico, General Obligation and Public Improvement No Opt. Call A 5,052,450
Bonds, Series 2001A, 5.500%, 7/01/20 - NPFG Insured
Nuveen Investments 39
NVC | Nuveen California Select Quality Municipal Fund, Inc. (continued)
| Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 585 Roseville Joint Union High School District, Placer County, 8/15 at 100.00 AA- $ 600,637
California, General Obligation Bonds, Series 2006B,
5.000%, 8/01/27 - FGIC Insured
3,760 West Contra Costa Unified School District, Contra Costa 8/11 at 101.00 AAA 3,923,710
County, California, General Obligation Bonds, Series
2003B, 5.000%, 8/01/22 - FSA Insured
2,000 West Contra Costa Unified School District, Contra Costa 8/11 at 101.00 A 2,021,040
County, California, General Obligation Bonds, Series
2003C, 5.000%, 8/01/22 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
49,600 Total Tax Obligation/General 47,245,881
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 23.9% (15.6% OF TOTAL INVESTMENTS)
2,870 Bell Community Redevelopment Agency, California, Tax 10/13 at 100.00 BBB- 2,864,289
Allocation Bonds, Bell Project Area, Series 2003, 5.500%,
10/01/23 - RAAI Insured
California State Public Works Board, Lease Revenue Bonds,
Department of Mental Health, Coalinga State Hospital, Series
2004A:
4,000 5.500%, 6/01/21 6/14 at 100.00 A- 4,064,880
2,000 5.500%, 6/01/23 6/14 at 100.00 A- 2,018,940
730 Capistrano Unified School District, Orange County, 9/15 at 100.00 A 675,469
California, Special Tax Bonds, Community Facilities
District, Series 2005, 5.000%, 9/01/24 - FGIC Insured
1,000 Coachella Valley Unified School District, Riverside County, 9/16 at 100.00 N/R 848,470
California, Certificates of Participation, Series 2007,
5.000%, 9/01/31 - AMBAC Insured
3,000 Coronado Community Development Agency, California, Tax 9/15 at 100.00 A 2,615,400
Allocation Bonds, Community Development Project, Series
2005, 5.000%, 9/01/30 - AMBAC Insured
1,030 Folsom Cordova Unified School District, Sacramento County, 10/14 at 100.00 AAA 1,059,252
California, General Obligation Bonds, School Facilities
Improvement District 2, Series 2004B, 5.000%, 10/01/25 -
FSA Insured
Golden State Tobacco Securitization Corporation, California,
Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A,
Trust 2215-1:
1,940 13.090%, 6/01/38 - FGIC Insured (IF) 6/15 at 100.00 A- 1,026,803
1,355 13.090%, 6/01/45 - FGIC Insured (IF) 6/15 at 100.00 A- 609,858
1,785 Hawthorne Community Redevelopment Agency, California, Project 9/16 at 100.00 A- 1,526,853
Area 2 Tax Allocation Bonds, Series 2006, 5.250%,
9/01/36 - SYNCORA GTY Insured
1,500 Hesperia Unified School District, San Bernardino County, 2/17 at 100.00 BBB+ 1,249,545
California, Certificates of Participation, Capital
Improvement, Series 2007, 5.000%, 2/01/41 - AMBAC Insured
435 Indian Wells Redevelopment Agency, California, Tax Allocation 9/13 at 100.00 A 421,058
Bonds, Consolidated Whitewater Project Area, Series 2003A,
5.000%, 9/01/20 - AMBAC Insured
Irvine, California, Unified School District, Community
Facilities District Special Tax Bonds, Series 2006A:
330 5.000%, 9/01/26 9/16 at 100.00 N/R 288,592
760 5.125%, 9/01/36 9/16 at 100.00 N/R 625,738
3,000 La Quinta Redevelopment Agency, California, Tax Allocation 9/11 at 102.00 A+ 2,864,430
Bonds, Redevelopment Project Area 1, Series 2001, 5.000%,
9/01/21 - AMBAC Insured
3,510 Long Beach Bond Financing Authority, California, Lease 10/09 at 100.00 A+ 3,509,965
Revenue and Refunding Bonds, Civic Center Project, Series
1997A, 5.000%, 10/01/27 - NPFG Insured
4,315 Los Angeles Community Redevelopment Agency, California, Lease 9/15 at 100.00 A2 3,646,002
Revenue Bonds, Manchester Social Services Project, Series
2005, 5.000%, 9/01/37 - AMBAC Insured
5,770 Los Angeles County Metropolitan Transportation Authority, 1/10 at 100.00 A1 5,773,577
California, Proposition C Second Senior Lien Sales Tax
Revenue Refunding Bonds, Series 1998A, 5.000%, 7/01/23 -
AMBAC Insured
8,175 Los Angeles, California, Municipal Improvement Corporation, 1/17 at 100.00 AA- 7,918,632
Lease Revenue Bonds, Police Headquarters, Series 2006A,
4.750%, 1/01/31 - FGIC Insured
2,580 Oakland Redevelopment Agency, California, Subordinate Lien 3/13 at 100.00 A 2,602,601
Tax Allocation Bonds, Central District Redevelopment
Project, Series 2003, 5.500%, 9/01/18 - FGIC Insured
3,605 Oakland State Building Authority, California, Lease Revenue 10/09 at 100.50 A- 3,607,307
Bonds, Elihu M. Harris State Office Building, Series
1998A, 5.000%, 4/01/23 - AMBAC Insured
2,280 Ontario Redevelopment Financing Authority, California, Lease 8/11 at 101.00 A+ 2,410,553
Revenue Bonds, Capital Projects, Series 2001, 5.250%,
8/01/18 - AMBAC Insured
1,000 Orange County, California, Special Tax Bonds, Community 8/12 at 101.00 N/R 927,310
Facilities District 03-1 of Ladera Ranch, Series 2004A,
5.500%, 8/15/24
40 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,120 Panama-Buena Vista Union School District, California, 9/16 at 100.00 A $ 1,135,848
Certificates of Participation, School Construction
Project, Series 2006, 5.000%, 9/01/23 - NPFG Insured
8,750 Pittsburg Redevelopment Agency, California, Tax Allocation No Opt. Call N/R 3,767,750
Bonds, Los Medanos Community Development Project, Series
1999, 0.000%, 8/01/23 - AMBAC Insured
635 Rialto Redevelopment Agency, California, Tax Allocation 9/15 at 100.00 A- 526,574
Bonds, Merged Project Area, Series 2005A, 5.000%,
9/01/35 - SYNCORA GTY Insured
100 Riverside Public Financing Authority, California, Revenue 2/10 at 100.00 N/R 100,233
Bonds, Multiple Project Loans, Series 1991A, 8.000%,
2/01/18
820 Roseville, California, Certificates of Participation, Public 8/13 at 100.00 AA- 767,758
Facilities, Series 2003A, 5.000%, 8/01/25 - AMBAC Insured
2,200 San Jose Financing Authority, California, Lease Revenue 9/11 at 100.00 AA+ 2,302,080
Refunding Bonds, Convention Center Project, Series 2001F,
5.000%, 9/01/20 - NPFG Insured
1,365 San Mateo Union High School District, San Mateo County, 12/17 at 100.00 N/R 1,188,683
California, Certificates of Participation, Phase 1, Series
2007A, 5.000%, 12/15/30 - AMBAC Insured
4,625 Santa Clara Redevelopment Agency, California, Tax Allocation 6/13 at 100.00 A 4,651,177
Bonds, Bayshore North Project, Series 2003, 5.000%,
6/01/17 - NPFG Insured
6,870 Vernon Redevelopment Agency, California, Tax Allocation 9/15 at 100.00 A 5,696,947
Bonds, Industrial Redevelopment Project, Series 2005,
5.000%, 9/01/35 - NPFG Insured
2,175 Washington Unified School District, Yolo County, California, 8/17 at 100.00 BBB+ 1,940,100
Certificates of Participation, Series 2007, 5.125%,
8/01/37 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
85,630 Total Tax Obligation/Limited 75,232,674
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 18.0% (11.7% OF TOTAL INVESTMENTS)
2,210 Bay Area Toll Authority, California, Revenue Bonds, San 4/16 at 100.00 AA 2,255,858
Francisco Bay Area Toll Bridge, Series 2006F, 5.000%,
4/01/31 (UB)
2,450 Bay Area Toll Authority, California, Revenue Bonds, San 4/18 at 100.00 AA 2,777,107
Francisco Bay Area Toll Bridge, Series 2008, Trust 3211,
13.298%, 4/01/39 (IF)
8,300 Foothill/Eastern Transportation Corridor Agency, California, 1/10 at 100.00 A 6,197,278
Toll Road Revenue Bonds, Series 1995A, 5.000%, 1/01/35 -
NPFG Insured
10,500 Foothill/Eastern Transportation Corridor Agency, California, 1/14 at 101.00 BBB- 8,698,725
Toll Road Revenue Refunding Bonds, Series 1999, 5.875%,
1/15/29
7,940 Port of Oakland, California, Revenue Bonds, Series 2000K, 5/10 at 100.00 A1 7,901,808
5.750%, 11/01/29 - FGIC Insured
20,000 San Francisco Airports Commission, California, Revenue Bonds, 5/10 at 101.00 AAA 20,164,997
San Francisco International Airport, Second Series 2000,
Issue 25, 5.750%, 5/01/30 - FSA Insured (Alternative
Minimum Tax)
5,000 San Francisco Airports Commission, California, Revenue 5/11 at 100.00 A1 5,095,800
Refunding Bonds, San Francisco International Airport,
Second Series 2001, Issue 27B, 5.250%, 5/01/18 - FGIC
Insured
3,665 San Francisco Airports Commission, California, Revenue 5/12 at 100.00 A1 3,665,623
Refunding Bonds, San Francisco International Airport,
Second Series 2002, Issue 28A, 5.250%, 5/01/18 - NPFG
Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
60,065 Total Transportation 56,757,196
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 34.9% (22.7% OF TOTAL INVESTMENTS) (4)
9,750 California Department of Water Resources, Power Supply 5/12 at 101.00 Aaa 10,877,196
Revenue Bonds, Series 2002A, 5.125%, 5/01/18 (Pre-refunded
5/01/12)
5,760 California Health Facilities Financing Authority, Revenue 12/09 at 101.00 N/R (4) 5,900,486
Bonds, Cedars-Sinai Medical Center, Series 1999A, 6.125%,
12/01/30 (Pre-refunded 12/01/09)
3,000 California Pollution Control Financing Authority, Solid Waste 1/10 at 100.00 Aaa 3,638,250
Disposal Revenue Bonds, North County Recycling Center,
Series 1991A, 6.750%, 7/01/17 (ETM)
California Statewide Community Development Authority,
Certificates of Participation, Catholic Healthcare West,
Series 1999:
4,495 6.500%, 7/01/20 (Pre-refunded 7/01/10) 7/10 at 101.00 N/R (4) 4,758,227
1,845 6.500%, 7/01/20 (Pre-refunded 7/01/10) 7/10 at 101.00 N/R (4) 1,950,239
Nuveen Investments 41
NVC | Nuveen California Select Quality Municipal Fund, Inc. (continued)
| Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
California, Various Purpose General Obligation Bonds,
Series 2000:
$ 4,450 5.625%, 5/01/22 (Pre-refunded 5/01/10) - FGIC Insured 5/10 at 101.00 Aaa $ 4,647,624
10,000 5.750%, 3/01/27 (Pre-refunded 3/01/10) - NPFG Insured 3/10 at 101.00 AAA 10,360,300
255 Contra Costa County, California, GNMA Mortgage-Backed No Opt. Call AAA 257,795
Securities Program Home Mortgage Revenue Bonds, Series
1989, 7.700%, 11/01/09 (Alternative Minimum Tax) (ETM)
5,515 Fresno Unified School District, Fresno County, California, 2/10 at 102.00 A+ (4) 5,700,966
General Obligation Bonds, Series 2001E, 5.000%, 8/01/25 -
FGIC Insured (ETM)
3,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 3,535,110
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.750%, 6/01/39 (Pre-refunded 6/01/13)
3,000 Los Angeles County Metropolitan Transportation Authority, 7/10 at 101.00 AA (4) 3,152,490
California, Proposition C Second Senior Lien Sales Tax
Revenue Bonds, Series 2000A, 5.250%, 7/01/25 (Pre-refunded
7/01/10) - FGIC Insured
6,030 Los Angeles Unified School District, California, General 7/10 at 100.00 AA- (4) 6,282,657
Obligation Bonds, Series 2000D, 5.375%, 7/01/25
(Pre-refunded 7/01/10) - FGIC Insured
Monterey County, California, Certificates of Participation,
Master Plan Financing, Series 2001:
2,075 5.000%, 8/01/19 (Pre-refunded 8/01/11) - MBIA Insured 8/11 at 100.00 A3 (4) 2,242,701
3,000 5.000%, 8/01/26 (Pre-refunded 8/01/11) - MBIA Insured 8/11 at 100.00 A3 (4) 3,242,460
60 Port of Oakland, California, Revenue Bonds, Series 2000K, 5/10 at 100.00 A1 (4) 61,841
5.750%, 11/01/29 (Pre-refunded 5/01/10) - FGIC Insured
10,000 Puerto Rico Highway and Transportation Authority, Highway 7/10 at 101.00 BBB (4) 10,548,900
Revenue Bonds, Series 2000B, 6.000%, 7/01/31 (Pre-refunded
7/01/10)
4,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 4,257,600
Obligation Bonds, Series 2000A, 5.500%, 10/01/32
2,000 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call AAA 2,442,340
Appropriation Bonds, Series 2002E, 6.000%, 8/01/26 - AGC
Insured (ETM)
17,670 San Francisco City and County Public Utilities Commission, 11/11 at 100.00 AAA 19,261,182
California, Water Revenue Bonds, Series 2001A, 5.000%,
11/01/24 (Pre-refunded 11/01/11) - FSA Insured
6,555 Sweetwater Authority, California, Water Revenue Bonds, Series 4/10 at 101.00 AAA 6,798,453
2002, 5.000%, 4/01/22 (Pre-refunded 4/01/10) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
102,460 Total U.S. Guaranteed 109,916,817
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 16.6% (10.8% OF TOTAL INVESTMENTS)
2,000 Anaheim Public Finance Authority, California, Revenue 10/12 at 100.00 AAA 2,201,400
Refunding Bonds, Electric Generating System, Series 2002B,
5.250%, 10/01/18 - FSA Insured
1,810 Anaheim Public Finance Authority, California, Second Lien 10/14 at 100.00 A+ 1,909,496
Electric Distribution Revenue Bonds, Series 2004, 5.250%,
10/01/21 - NPFG Insured
10,350 California Pollution Control Financing Authority, Revenue No Opt. Call Aa3 11,984,057
Bonds, San Diego Gas and Electric Company, Series 1991A,
6.800%, 6/01/15 (Alternative Minimum Tax)
4,000 Imperial Irrigation District, California, Certificates of 11/13 at 100.00 AAA 4,162,640
Participation, Electric System Revenue Bonds, Series 2003,
5.250%, 11/01/23 - FSA Insured
3,855 Long Beach Bond Finance Authority, California, Natural Gas No Opt. Call A 3,724,547
Purchase Revenue Bonds, Series 2007A, 5.500%, 11/15/37
5,000 Los Angeles Department of Water and Power, California, Power 7/11 at 100.00 AA- 5,249,500
System Revenue Bonds, Series 2001A-2, 5.375%, 7/01/20 -
NPFG Insured
5,000 Los Angeles Department of Water and Power, California, Power 7/15 at 100.00 AAA 5,085,650
System Revenue Bonds, Series 2005, 5.000%, 7/01/31 - FSA
Insured (UB)
5,225 Los Angeles, California, Sanitation Equipment Charge Revenue 2/11 at 100.00 AAA 5,447,689
Bonds, Series 2001A, 5.250%, 2/01/18 - FSA Insured
1,025 Los Angeles, California, Sanitation Equipment Charge Revenue 2/14 at 100.00 AA 1,072,591
Bonds, Series 2004A, 5.000%, 2/01/22 - AMBAC Insured
Merced Irrigation District, California, Electric System
Revenue Bonds, Series 2005:
1,260 5.125%, 9/01/31 - SYNCORA GTY Insured 9/15 at 100.00 N/R 1,057,417
2,800 5.250%, 9/01/36 - SYNCORA GTY Insured 9/15 at 100.00 N/R 2,308,292
4,360 Sacramento Municipal Utility District, California, Electric 8/12 at 100.00 AAA 4,565,530
Revenue Refunding Bonds, Series 2002Q, 5.250%, 8/15/19 -
FSA Insured
42 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES (continued)
$ 3,460 Southern California Public Power Authority, Revenue Bonds, 7/13 at 100.00 A+ $ 3,628,813
Magnolia Power Project, Series 2003-1A, 5.000%, 7/01/20 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
50,145 Total Utilities 52,397,622
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 7.4% (4.9% OF TOTAL INVESTMENTS)
1,185 Burbank, California, Wastewater System Revenue Bonds, Series 6/14 at 100.00 AA+ 1,216,118
2004A, 5.000%, 6/01/24 - AMBAC Insured
890 Healdsburg Public Financing Authority, California, Wastewater 4/16 at 100.00 AA- 850,902
Revenue Bonds, Series 2006, 5.000%, 4/01/36 - NPFG Insured
1,250 Indio Water Authority, California, Water Revenue Bonds, 4/16 at 100.00 A+ 1,205,175
Series 2006, 5.000%, 4/01/31 - AMBAC Insured
4,705 Madera Irrigation District. California, Water Revenue 1/18 at 100.00 A- 4,739,017
Refunding Bonds, Series 2008, 5.500%, 1/01/38
3,750 Metropolitan Water District of Southern California, Water 10/14 at 100.00 AAA 3,885,900
Revenue Bonds, Series 2004B-3, 5.000%, 10/01/29 - NPFG
Insured
1,510 Orange County Sanitation District, California, Certificates 2/19 at 100.00 AAA 1,655,624
of Participation, Series 2007, Trust 3020, 17.125%,
2/01/35 (IF)
2,000 Pico Rivera Water Authority, California, Revenue Bonds, 12/11 at 102.00 N/R 1,685,260
Series 2001A, 6.250%, 12/01/32
2,525 Sacramento County Sanitation District Financing Authority, No Opt. Call AA 2,909,078
California, Revenue Refunding Bonds, Series 2001, 5.500%,
12/01/20 - AMBAC Insured
San Francisco City and County Public Utilities Commission,
California, Clean Water Revenue Refunding Bonds, Series 2003A:
2,120 5.250%, 10/01/19 - NPFG Insured 4/13 at 100.00 A+ 2,230,346
2,960 5.250%, 10/01/20 - NPFG Insured 4/13 at 100.00 A+ 3,068,277
------------------------------------------------------------------------------------------------------------------------------------
22,895 Total Water and Sewer 23,445,697
------------------------------------------------------------------------------------------------------------------------------------
$ 510,053 Total Long-Term Investments (cost $489,578,078) - 152.4% 480,388,045
==================------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 1.1% (0.7% OF TOTAL INVESTMENTS)
HEALTH CARE - 1.1% (0.7% OF TOTAL INVESTMENTS)
$ 3,500 California Health Facilities Financing Authority, Revenue 11/09 at 100.00 A-1 3,500,000
Bonds, Catholic Healthcare West, Variable Rate Demand
Obligations, Series 2008B, 0.260%, 7/01/25 (5)
==================------------------------------------------------------------------------------------------------------------------
Total Short-Term Investments (cost $3,500,000) 3,500,000
------------------------------------------------------------------------------------------------------------------
Total Investments (cost $493,078,078) - 153.5% 483,888,045
------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (6.5)% (20,585,000)
------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 3.1% 9,919,120
------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (50.1)% (6) (158,025,000)
------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 315,197,165
==================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call provisions
at varying prices at later dates. Certain mortgage-backed securities may
be subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be below investment
grade.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) Investment has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term investment. The rate
disclosed is that in effect at the end of the reporting period. This rate
changes periodically based on market conditions or a specified market
index.
(6) Preferred shares, at Liquidation Value as a percentage of Total
Investments is 32.7%.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140. See Notes to
Financial Statements, Footnote 1 - Inverse Floating Rate Securities for
more information.
See accompanying notes to financial statements.
Nuveen Investments 43
NUC | Nuveen California Quality Income Municipal Fund, Inc.
| Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 5.8% (3.7% OF TOTAL INVESTMENTS)
$ 5,000 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 Baa3 $ 4,181,650
Settlement Asset-Backed Bonds, Alameda County Tobacco
Asset Securitization Corporation, Series 2002, 5.750%,
6/01/29
960 California County Tobacco Securitization Agency, Tobacco 6/15 at 100.00 BBB 877,018
Settlement Asset-Backed Bonds, Sonoma County Tobacco
Securitization Corporation, Series 2005, 4.250%, 6/01/21
4,510 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 Baa3 3,587,164
Settlement Asset-Backed Bonds, Stanislaus County Tobacco
Funding Corporation, Series 2002A, 5.500%, 6/01/33
7,565 California Statewide Financing Authority, Tobacco Settlement 5/12 at 100.00 Baa3 7,332,603
Asset-Backed Bonds, Pooled Tobacco Securitization Program,
Series 2002A, 5.625%, 5/01/29
3,370 Golden State Tobacco Securitization Corporation, California, 6/22 at 100.00 BBB 1,775,316
Enhanced Tobacco Settlement Asset-Backed Bonds, Series
2007A-2, 0.000%, 6/01/37
------------------------------------------------------------------------------------------------------------------------------------
21,405 Total Consumer Staples 17,753,751
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 7.9% (5.1% OF TOTAL
INVESTMENTS)
280 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 A3 259,619
University of Redlands, Series 2005A, 5.000%, 10/01/35
1,935 California Educational Facilities Authority, Revenue Bonds, 10/18 at 100.00 AA+ 2,122,037
University of Southern California, Tender Option Bond
Trust 09-11B, 16.819%, 10/01/38 (IF)
2,785 California Educational Facilities Authority, Revenue Bonds, 11/10 at 100.00 A2 2,798,758
University of the Pacific, Series 2000, 5.750%, 11/01/30 -
NPFG Insured
California Educational Facilities Authority, Revenue Bonds,
University of the Pacific, Series 2006:
195 5.000%, 11/01/21 11/15 at 100.00 A2 196,427
260 5.000%, 11/01/25 11/15 at 100.00 A2 251,857
4,640 California State Public Works Board, Lease Revenue Bonds, 3/18 at 100.00 Aa2 4,589,424
University of California Regents, Trust 1065, 9.041%,
3/01/33 (IF)
4,000 California State Public Works Board, Lease Revenue Refunding 9/09 at 100.00 Baa2 4,012,040
Bonds, Community Colleges Projects, Series 1996B, 5.625%,
3/01/19 - AMBAC Insured
6,400 California State University, Systemwide Revenue Bonds, Series 11/12 at 100.00 Aa3 6,613,824
2002A, 5.000%, 11/01/20 - AMBAC Insured
1,000 San Diego County, California, Certificates of Participation, 9/15 at 102.00 Baa3 757,810
Burnham Institute, Series 2006, 5.000%, 9/01/34
2,500 University of California, Revenue Bonds, Multi-Purpose 5/13 at 100.00 AA 2,520,825
Projects, Series 2003A, 5.000%, 5/15/33 - AMBAC Insured
(UB)
------------------------------------------------------------------------------------------------------------------------------------
23,995 Total Education and Civic Organizations 24,122,621
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 19.3% (12.5% OF TOTAL INVESTMENTS)
1,750 ABAG Finance Authority for Non-Profit Corporations, 4/12 at 100.00 A 1,759,642
California, Cal-Mortgage Insured Revenue Bonds,
Sansum-Santa Barbara Medical Foundation Clinic, Series
2002A, 5.500%, 4/01/21
640 California Health Facilities Financing Authority, Revenue 4/16 at 100.00 A+ 569,926
Bonds, Kaiser Permanante System, Series 2006, 5.000%,
4/01/37
14,550 California Health Facilities Financing Authority, Revenue 11/16 at 100.00 Aa3 13,131,957
Bonds, Sutter Health, Series 2007A, 5.250%, 11/15/46 (UB)
2,855 California Municipal Financing Authority, Certificates of 2/17 at 100.00 Baa2 2,235,722
Participation, Community Hospitals of Central California,
Series 2007, 5.250%, 2/01/46
1,225 California State Public Works Board, Revenue Bonds, 11/14 at 100.00 Aa2 1,243,289
University of California - Davis Medical Center, Series
2004II-A, 5.000%, 11/01/23 - NPFG Insured
1,571 California Statewide Communities Development Authority, 7/18 at 100.00 AAA 1,572,759
Revenue Bonds, Saint Joseph Health System, Trust 2554,
18.134%, 7/01/47 - FSA Insured (IF)
535 California Statewide Community Development Authority, No Opt. Call A2 575,943
Certificates of Participation, Cedars-Sinai Medical
Center, Series 1992, 6.500%, 8/01/12
1,500 California Statewide Community Development Authority, Revenue 7/15 at 100.00 BBB 1,266,375
Bonds, Daughters of Charity Health System, Series 2005A,
5.250%, 7/01/30
17,075 California Statewide Community Development Authority, Revenue 3/16 at 100.00 A+ 15,221,337
Bonds, Kaiser Permanante System, Series 2006, 5.000%,
3/01/41
44 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 3,015 California Statewide Community Development Authority, Revenue 8/16 at 100.00 A+ $ 2,919,545
Bonds, Kaiser Permanente System, Series 2001C, 5.250%,
8/01/31
17,470 California Statewide Community Development Authority, Revenue 8/17 at 100.00 Aa3 15,745,535
Bonds, Sutter Health, Series 2007C, 5.000%, 8/15/38 -
AMBAC Insured
3,025 Loma Linda, California, Hospital Revenue Bonds, Loma Linda 12/17 at 100.00 BBB 3,166,661
University Medical Center, Series 2008A, 8.250%, 12/01/38
------------------------------------------------------------------------------------------------------------------------------------
65,211 Total Health Care 59,408,691
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 2.7% (1.7% OF TOTAL INVESTMENTS)
1,000 Independent Cities Lease Finance Authority, California, 11/14 at 100.00 N/R 798,220
Revenue Bonds, Morgan Hill, Hacienda Valley Mobile Home
Park, Series 2004A, 5.950%, 11/15/39
2,110 Irvine, California, Mobile Home Park Revenue Bonds, Meadows 9/09 at 101.00 N/R 2,007,032
Mobile Home Park, Series 1998A, 5.700%, 3/01/18
2,185 Oceanside, California, Mobile Home Park Revenue Bonds, Laguna 9/09 at 101.00 N/R 1,813,725
Vista Mobile Estates Acquisition Project, Series 1998,
5.800%, 3/01/28
3,040 Riverside County, California, Mobile Home Park Revenue Bonds, 9/09 at 102.00 N/R 2,495,354
Bravo Mobile Home Park Project, Series 1999A, 5.900%,
3/20/29
1,030 Yolo County Housing Authority, California, Revenue Refunding 11/09 at 100.00 Aa2 1,032,843
Bonds, Russell Park Apartments, Series 1992A, 7.000%,
11/01/14
------------------------------------------------------------------------------------------------------------------------------------
9,365 Total Housing/Multifamily 8,147,174
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 1.1% (0.7% OF TOTAL INVESTMENTS)
640 California Housing Finance Agency, Home Mortgage Revenue 2/16 at 100.00 AA- 647,552
Bonds, Series 2006H, 5.750%, 8/01/30 - FGIC Insured
(Alternative Minimum Tax)
3,910 California Housing Finance Agency, Home Mortgage Revenue 2/16 at 100.00 AA- 2,878,872
Bonds, Tender Option Bond Trust 11605, 17.816%, 8/01/26
(Alternative Minimum Tax) (IF)
------------------------------------------------------------------------------------------------------------------------------------
4,550 Total Housing/Single Family 3,526,424
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.6% (0.4% OF TOTAL INVESTMENTS)
2,000 California Pollution Control Financing Authority, Solid Waste 1/16 at 102.00 BBB 1,843,520
Disposal Revenue Bonds, Waste Management Inc., Series
2002A, 5.000%, 1/01/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 0.8% (0.5% OF TOTAL INVESTMENTS)
3,500 California Statewide Communities Development Authority, 12/17 at 100.00 Ba1 2,525,950
Revenue Bonds, Inland Regional Center Project, Series
2007, 5.375%, 12/01/37
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 13.3% (8.6% OF TOTAL INVESTMENTS)
1,900 Azusa Unified School District, Los Angeles County, 7/12 at 100.00 AAA 2,049,530
California, General Obligation Bonds, Series 2002, 5.375%,
7/01/20 - FSA Insured
80 California, General Obligation Bonds, Series 2000, 5.500%, 6/10 at 100.00 A 80,387
6/01/25
1,370 Fremont-Newark Community College District, Alameda County, 8/11 at 101.00 AA- 1,462,269
California, General Obligation Bonds, Series 2002A,
5.375%, 8/01/20 - NPFG Insured
3,610 Hartnell Community College District, California, General 6/16 at 100.00 AAA 3,686,424
Obligation Bonds, Series 2006B, 5.000%, 6/01/29 - FSA
Insured (UB)
5,255 Livermore Valley Joint Unified School District, Alameda 8/11 at 100.00 AAA 5,349,275
County, California, General Obligation Bonds, Election of
1999, Series 2001, 5.125%, 8/01/26 - FSA Insured
2,645 Long Beach Community College District, California, General 5/15 at 100.00 AA- 2,681,289
Obligation Bonds, Series 2005B, 5.000%, 5/01/30 - FGIC
Insured
1,170 Los Angeles Unified School District, California, General 7/13 at 100.00 AAA 1,264,887
Obligation Bonds, Series 2003F, 5.000%, 7/01/17 - FSA
Insured
565 Roseville Joint Union High School District, Placer County, 8/15 at 100.00 AA- 580,102
California, General Obligation Bonds, Series 2006B,
5.000%, 8/01/27 - FGIC Insured
1,500 Sacramento City Unified School District, Sacramento County, 7/15 at 100.00 Aa3 1,541,115
California, General Obligation Bonds, Series 2005, 5.000%,
7/01/27 - NPFG Insured
6,760 San Diego Unified School District, San Diego County, 7/13 at 101.00 AAA 7,559,978
California, General Obligation Bonds, Series 2003E,
5.250%, 7/01/21 - FSA Insured
Nuveen Investments 45
NUC | Nuveen California Quality Income Municipal Fund, Inc. (continued)
| Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 515 San Joaquin Delta Community College District, California, 8/15 at 100.00 AAA $ 524,744
General Obligation Bonds, Series 2005A, 5.000%, 8/01/29 -
FSA Insured
1,500 San Jose Unified School District, Santa Clara County, 8/15 at 100.00 AA 1,554,285
California, General Obligation Bonds, Series 2005B,
5.000%, 8/01/25 - FGIC Insured
6,865 San Ramon Valley Unified School District, Contra Costa 8/13 at 100.00 AAA 7,123,742
County, California, General Obligation Bonds, Series 2003,
5.000%, 8/01/23 - FSA Insured (UB)
1,390 South Pasadena Unified School District, Los Angeles County, 8/13 at 100.00 AA- 1,428,711
California, General Obligation Bonds, Series 2003A,
5.000%, 8/01/22 - FGIC Insured
3,925 West Contra Costa Unified School District, Contra Costa 8/11 at 101.00 AAA 4,038,275
County, California, General Obligation Bonds, Series
2003B, 5.000%, 8/01/23 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
39,050 Total Tax Obligation/General 40,925,013
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 29.9% (19.3% OF TOTAL INVESTMENTS)
1,655 Bell Community Housing Authority, California, Lease Revenue 10/15 at 100.00 BBB+ 1,405,442
Bonds, Series 2005, 5.000%, 10/01/36 - AMBAC Insured
1,200 Burbank Public Financing Authority, California, Revenue 12/12 at 100.00 BBB+ 1,121,808
Bonds, West Olive Redevelopment Project, Series 2002,
5.125%, 12/01/22 - AMBAC Insured
3,070 California State Public Works Board, Lease Revenue Bonds, 12/12 at 100.00 A- 3,153,719
Department of General Services, Capital East End Project,
Series 2002A, 5.250%, 12/01/16 - AMBAC Insured
2,030 California State Public Works Board, Lease Revenue Bonds, 3/12 at 100.00 A- 2,033,248
Department of General Services, Series 2002C, 5.250%,
3/01/21 - AMBAC Insured
5,115 California State Public Works Board, Lease Revenue Bonds, 6/14 at 100.00 A- 5,222,620
Department of Mental Health, Coalinga State Hospital,
Series 2004A, 5.500%, 6/01/20
2,715 California, Economic Recovery Revenue Bonds, Series 2004A, 7/14 at 100.00 A 2,956,228
5.000%, 7/01/15
690 Capistrano Unified School District, Orange County, 9/15 at 100.00 A 638,457
California, Special Tax Bonds, Community Facilities
District, Series 2005, 5.000%, 9/01/24 - FGIC Insured
3,000 Coachella Valley Unified School District, Riverside County, 9/16 at 100.00 N/R 2,545,410
California, Certificates of Participation, Series 2007,
5.000%, 9/01/31 - AMBAC Insured
Commerce Community Development Commission, California, Tax
Allocation Refunding Bonds, Merged Area Development Projects 2
and 3, Series 1998A:
1,000 5.650%, 8/01/18 2/10 at 101.00 N/R 910,700
2,765 5.700%, 8/01/28 2/10 at 101.00 N/R 2,179,649
1,250 Coronado Community Development Agency, California, Tax 9/15 at 100.00 A 1,089,750
Allocation Bonds, Community Development Project, Series
2005, 5.000%, 9/01/30 - AMBAC Insured
3,065 Corona-Norco Unified School District, Riverside County, 9/13 at 100.00 A 3,079,160
California, Special Tax Bonds, Community Facilities
District 98-1, Series 2003, 5.500%, 9/01/33 - NPFG Insured
1,490 Fresno, California, Certificates of Participation, Street 12/09 at 100.00 AA- 1,508,610
Improvement Project, Series 1991, 6.625%, 12/01/11
Golden State Tobacco Securitization Corporation, California,
Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A,
Trust 2215-1:
1,885 13.090%, 6/01/38 - FGIC Insured (IF) 6/15 at 100.00 A- 997,693
1,320 13.090%, 6/01/45 - FGIC Insured (IF) 6/15 at 100.00 A- 594,106
9,500 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 A- 8,431,535
Tobacco Settlement Asset-Backed Revenue Bonds, Series
2005A, 5.000%, 6/01/35 - FGIC Insured
Irvine, California, Unified School District, Community
Facilities District Special Tax Bonds, Series 2006A:
320 5.000%, 9/01/26 9/16 at 100.00 N/R 279,846
735 5.125%, 9/01/36 9/16 at 100.00 N/R 605,155
3,245 Los Angeles Community Redevelopment Agency, California, Lease 9/15 at 100.00 A2 2,741,895
Revenue Bonds, Manchester Social Services Project, Series
2005, 5.000%, 9/01/37 - AMBAC Insured
1,350 Los Angeles Community Redevelopment Agency, California, 3/13 at 100.00 BBB- 1,260,198
Subordinate Lien Tax Allocation Bonds, Bunker Hill
Redevelopment Project, Series 2004L, 5.100%, 3/01/19
4,850 Los Angeles County Metropolitan Transportation Authority, 7/13 at 100.00 AAA 5,304,348
California, Proposition A First Tier Senior Sales Tax
Revenue Bonds, Series 2003A, 5.000%, 7/01/16 - FSA Insured
15,300 Ontario Redevelopment Financing Authority, San Bernardino No Opt. Call A 17,615,960
County, California, Revenue Refunding Bonds, Redevelopment
Project 1, Series 1995, 7.400%, 8/01/25 - NPFG Insured
46 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,170 Panama-Buena Vista Union School District, California, 9/16 at 100.00 A $ 1,184,473
Certificates of Participation, School Construction
Project, Series 2006, 5.000%, 9/01/24 - NPFG Insured
Redding Redevelopment Agency, California, Tax Allocation
Bonds, Canby-Hilltop-Cypress Area Project, Series 2003A:
1,500 5.000%, 9/01/17 - NPFG Insured 9/13 at 100.00 A 1,505,010
1,500 5.000%, 9/01/20 - NPFG Insured 9/13 at 100.00 A 1,451,925
600 Rialto Redevelopment Agency, California, Tax Allocation 9/15 at 100.00 A- 497,550
Bonds, Merged Project Area, Series 2005A, 5.000%,
9/01/35 - SYNCORA GTY Insured
4,320 Richmond Joint Powers Financing Authority, California, Tax 9/13 at 100.00 A+ 4,171,262
Allocation Bonds, Series 2003A, 5.250%, 9/01/22 - NPFG
Insured
2,000 Rohnert Park Community Development Commission, California, 8/17 at 100.00 A 1,637,760
Redevelopment Project Tax Allocation Bonds, Series 2007R,
5.000%, 8/01/37 - FGIC Insured
745 Roseville, California, Certificates of Participation, Public 8/13 at 100.00 AA- 697,536
Facilities, Series 2003A, 5.000%, 8/01/25 - AMBAC Insured
8,625 Sacramento City Financing Authority, California, Capital 12/16 at 100.00 A1 7,973,209
Improvement Revenue Bonds, 300 Richards Boulevard, Series
2006C, 5.000%, 12/01/36 - AMBAC Insured
2,500 San Jose Financing Authority, California, Lease Revenue 9/11 at 100.00 AA+ 2,616,000
Refunding Bonds, Convention Center Project, Series 2001F,
5.000%, 9/01/20 - NPFG Insured
2,770 Santa Ana Community Redevelopment Agency, Orange County, 9/13 at 100.00 A 2,758,588
California, Tax Allocation Refunding Bonds, South Main
Street Redevelopment, Series 2003B, 5.000%, 9/01/19 - FGIC
Insured
2,090 Washington Unified School District, Yolo County, California, 8/17 at 100.00 BBB+ 1,864,280
Certificates of Participation, Series 2007, 5.125%,
8/01/37 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
95,370 Total Tax Obligation/Limited 92,033,130
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 13.6% (8.8% OF TOTAL INVESTMENTS)
3,950 Bay Area Toll Authority, California, Revenue Bonds, San 4/16 at 100.00 AA 4,031,963
Francisco Bay Area Toll Bridge, Series 2006F, 5.000%,
4/01/31 (UB)
970 Bay Area Toll Authority, California, Revenue Bonds, San 4/18 at 100.00 AA 1,099,508
Francisco Bay Area Toll Bridge, Series 2008, Trust 3211,
13.298%, 4/01/39 (IF)
11,000 Foothill/Eastern Transportation Corridor Agency, California, 1/14 at 101.00 BBB- 9,112,950
Toll Road Revenue Refunding Bonds, Series 1999, 5.875%,
1/15/29
2,000 Orange County Transportation Authority, California, Toll Road 8/13 at 100.00 A1 2,040,180
Revenue Bonds, 91 Express Lanes Project, Series 2003A,
5.000%, 8/15/20 - AMBAC Insured
20,000 San Francisco Airports Commission, California, Revenue Bonds, 5/10 at 101.00 AAA 20,164,996
San Francisco International Airport, Second Series 2000,
Issue 25, 5.750%, 5/01/30 - FSA Insured (Alternative
Minimum Tax)
San Francisco Airports Commission, California, Revenue
Refunding Bonds, San Francisco International Airport, Second
Series 2002, Issue 28A:
1,480 5.250%, 5/01/17 - NPFG Insured (Alternative Minimum Tax) 5/12 at 100.00 A1 1,484,632
3,865 5.250%, 5/01/19 - NPFG Insured (Alternative Minimum Tax) 5/12 at 100.00 A1 3,840,728
------------------------------------------------------------------------------------------------------------------------------------
43,265 Total Transportation 41,774,957
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 44.4% (28.7% OF TOTAL INVESTMENTS) (4)
7,325 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 N/R (4) 7,894,226
Settlement Asset-Backed Bonds, Sonoma County Tobacco
Funding Corporation, Series 2002B, 5.500%, 6/01/30
(Pre-refunded 6/01/12)
9,000 California Department of Water Resources, Power Supply 5/12 at 101.00 Aaa 10,040,490
Revenue Bonds, Series 2002A, 5.125%, 5/01/18 (Pre-refunded
5/01/12)
6,190 California Educational Facilities Authority, Revenue Bonds, 11/10 at 100.00 A2 (4) 6,570,066
University of the Pacific, Series 2000, 5.750%, 11/01/30
(Pre-refunded 11/01/10) - MBIA Insured
California Health Facilities Financing Authority, Revenue
Bonds, Cedars-Sinai Medical Center, Series 1999A:
2,955 6.125%, 12/01/30 (Pre-refunded 12/01/09) 12/09 at 101.00 N/R (4) 3,027,072
3,200 6.250%, 12/01/34 (Pre-refunded 12/01/09) 12/09 at 101.00 N/R (4) 3,279,040
8,000 California Pollution Control Financing Authority, Solid Waste 11/09 at 100.00 Aaa 9,702,000
Disposal Revenue Bonds, North County Recycling Center,
Series 1991A, 6.750%, 7/01/17 (ETM)
1,965 California State, General Obligation Bonds, Series 2002, 4/12 at 100.00 AAA 2,167,081
5.250%, 4/01/32 (Pre-refunded 4/01/12)
Nuveen Investments 47
NUC | Nuveen California Quality Income Municipal Fund, Inc. (continued)
| Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 1,515 California Statewide Community Development Authority, Water 10/13 at 101.00 AAA $ 1,764,929
and Wastewater Revenue Bonds, Pooled Financing Program,
Series 2004A, 5.250%, 10/01/24 (Pre-refunded 10/01/13) -
FSA Insured
California, General Obligation Bonds, Series 2000:
1,105 5.500%, 6/01/25 (Pre-refunded 6/01/10) 6/10 at 100.00 AAA 1,143,620
315 5.500%, 6/01/25 (Pre-refunded 6/01/10) 6/10 at 100.00 AAA 326,009
2,500 California, General Obligation Bonds, Series 2004, 5.125%, 2/14 at 100.00 AAA 2,857,775
2/01/27 (Pre-refunded 2/01/14)
4,440 Coast Community College District, Orange County, California, 8/13 at 100.00 Aa2 (4) 5,029,810
General Obligation Refunding Bonds, Series 2003A, 5.000%,
8/01/22 (Pre-refunded 8/01/13) - MBIA Insured
1,615 Compton Unified School District, Los Angeles County, 9/13 at 100.00 A (4) 1,869,685
California, General Obligation Bonds, Series 2003A, 5.375%,
9/01/19 (Pre-refunded 9/01/13) - MBIA Insured
12,805 Contra Costa County, California, GNMA Mortgage-Backed No Opt. Call AAA 17,502,641
Securities Program Home Mortgage Revenue Bonds, Series
1988, 8.250%, 6/01/21 (Alternative Minimum Tax) (ETM)
3,000 Daly City Housing Development Finance Agency, California, 12/13 at 102.00 N/R (4) 3,568,560
Mobile Home Park Revenue Bonds, Franciscan Mobile Home Park
Project, Series 2002A, 5.850%, 12/15/32 (Pre-refunded
12/15/13)
8,000 Los Angeles County Metropolitan Transportation Authority, 7/10 at 101.00 AA (4) 8,406,640
California, Proposition C Second Senior Lien Sales Tax
Revenue Bonds, Series 2000A, 5.250%, 7/01/25 (Pre-refunded
7/01/10) - FGIC Insured
2,000 Los Angeles Unified School District, California, General 7/10 at 100.00 AA- (4) 2,083,800
Obligation Bonds, Series 2000D, 5.375%, 7/01/25
(Pre-refunded 7/01/10) - FGIC Insured
3,005 Monterey County, California, Certificates of Participation, 8/11 at 100.00 A3 (4) 3,247,864
Master Plan Financing, Series 2001, 5.000%, 8/01/20
(Pre-refunded 8/01/11) - MBIA Insured
2,375 Moreno Valley Unified School District, Riverside County, 8/14 at 100.00 AAA 2,772,385
California, General Obligation Bonds, Series 2004A, 5.250%,
8/01/24 (Pre-refunded 8/01/14) - FSA Insured
5,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 5,322,000
Obligation Bonds, Series 2000A, 5.500%, 10/01/32
2,685 Sacramento County, California, Airport System Revenue Bonds, 7/12 at 100.00 AAA 2,996,165
Series 2002A, 5.250%, 7/01/21 (Pre-refunded 7/01/12) - FSA
Insured
11,715 San Bernardino County, California, GNMA Mortgage-Backed No Opt. Call AAA 13,614,002
Securities Program Single Family Home Mortgage Revenue
Bonds, Series 1989A, 7.750%, 11/01/14 (Alternative Minimum
Tax) (ETM)
3,000 San Francisco Airports Commission, California, Revenue 5/12 at 100.00 A1 (4) 3,324,990
Refunding Bonds, San Francisco International Airport,
Second Series 2002, Issue 28B, 5.250%, 5/01/22
(Pre-refunded 5/01/12) - MBIA Insured
1,615 University of California, Certificates of Participation, San 1/10 at 101.00 Aa1 (4) 1,656,941
Diego and Sacramento Campus Projects, Series 2002A, 5.250%,
1/01/21 (Pre-refunded 1/01/10)
University of California, Revenue Bonds, Multi-Purpose
Projects, Series 2002O:
5,265 5.000%, 9/01/18 (Pre-refunded 9/01/10) - FGIC Insured 9/10 at 101.00 AA (4) 5,557,471
10,255 5.000%, 9/01/19 (Pre-refunded 9/01/10) - FGIC Insured 9/10 at 101.00 AA (4) 10,824,665
------------------------------------------------------------------------------------------------------------------------------------
120,845 Total U.S. Guaranteed 136,549,927
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 7.9% (5.1% OF TOTAL INVESTMENTS)
3,695 Long Beach Bond Finance Authority, California, Natural Gas No Opt. Call A 3,308,060
Purchase Revenue Bonds, Series 2007A, 5.000%, 11/15/35
500 Los Angeles Department of Water and Power, California, Power 7/15 at 100.00 AAA 508,565
System Revenue Bonds, Series 2005, 5.000%, 7/01/31 - FSA
Insured (UB)
Merced Irrigation District, California, Electric System
Revenue Bonds, Series 2005:
1,235 5.125%, 9/01/31 - SYNCORA GTY Insured 9/15 at 100.00 N/R 1,036,437
1,500 5.250%, 9/01/36 - SYNCORA GTY Insured 9/15 at 100.00 N/R 1,236,585
5,000 Merced Irrigation District, California, Revenue Certificates 9/13 at 102.00 Baa3 4,099,950
of Participation, Electric System Project, Series 2003,
5.700%, 9/01/36
1,200 Sacramento Municipal Utility District, California, Electric No Opt. Call A+ 1,226,472
Revenue Bonds, Series 2004T, 5.250%, 5/15/23 - FGIC Insured
2,410 Sacramento Municipal Utility District, California, Electric 8/12 at 100.00 AAA 2,499,194
Revenue Refunding Bonds, Series 2002Q, 5.250%, 8/15/21 -
FSA Insured
4,000 Southern California Public Power Authority, Revenue Bonds, 7/13 at 100.00 A+ 4,195,160
Magnolia Power Project, Series 2003-1A, 5.000%, 7/01/20 -
AMBAC Insured
48 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES (continued)
$ 5,500 Southern California Public Power Authority, Revenue Bonds, No Opt. Call A+ $ 6,055,995
Multiple Projects, Series 1989, 6.750%, 7/01/11
------------------------------------------------------------------------------------------------------------------------------------
25,040 Total Utilities 24,166,418
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 7.6% (4.9% OF TOTAL INVESTMENTS)
5,525 California Statewide Community Development Authority, Water 10/13 at 101.00 AAA 5,708,651
and Wastewater Revenue Bonds, Pooled Financing Program,
Series 2004A, 5.250%, 10/01/24 - FSA Insured
1,600 Eastern Municipal Water District, California, Water and 7/18 at 100.00 AA 1,924,892
Sewerage System Revenue Certificates of Participation,
Series 2008, Trust 3220, 14.247%, 7/01/35 (IF)
Goleta Water District, California, Certificates of
Participation Revenue Bonds, Series 2003:
1,000 5.250%, 12/01/20 - NPFG Insured 12/13 at 100.00 A+ 1,070,450
1,440 5.250%, 12/01/21 - NPFG Insured 12/13 at 100.00 A+ 1,531,325
1,205 5.250%, 12/01/22 - NPFG Insured 12/13 at 100.00 A+ 1,225,991
850 Healdsburg Public Financing Authority, California, Wastewater 4/16 at 100.00 AA- 812,659
Revenue Bonds, Series 2006, 5.000%, 4/01/36 - NPFG Insured
1,250 Indio Water Authority, California, Water Revenue Bonds, Series 4/16 at 100.00 A+ 1,205,175
2006, 5.000%, 4/01/31 - AMBAC Insured
670 Metropolitan Water District of Southern California, Waterworks 7/19 at 100.00 AAA 749,596
Revenue Bonds, Tender Option Bond Trust 09-8B, 16.669%,
7/01/35 (IF)
5,375 San Francisco City and County Public Utilities Commission, 11/12 at 100.00 AA- 5,696,049
California, Water Revenue Bonds, Series 2002A, 5.000%,
11/01/19 - NPFG Insured
Turlock Public Finance Authority, California, Sewerage Revenue
Bonds, Series 2003A:
1,565 5.000%, 9/15/19 - FGIC Insured 9/13 at 100.00 AA 1,628,132
1,650 5.000%, 9/15/20 - FGIC Insured 9/13 at 100.00 AA 1,698,362
------------------------------------------------------------------------------------------------------------------------------------
22,130 Total Water and Sewer 23,251,282
------------------------------------------------------------------------------------------------------------------------------------
$ 475,726 Total Investments (cost $474,565,254) - 154.9% 476,028,858
==================------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (5.9)% (18,210,000)
------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.2% 6,756,743
------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (51.2)% (5) (157,225,000)
------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 307,350,601
==================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call provisions
at varying prices at later dates. Certain mortgage-backed securities may
be subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be below investment
grade.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) Preferred Share, at Liquidation Value as a percentage of Total Investments
is 33.0%.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140. See Notes to
Financial Statements, Footnote 1 - Inverse Floating Rate Securities for
more information.
See accompanying notes to financial statements.
Nuveen Investments 49
| Statement of
| Assets & Liabilities August 31, 2009 (Unaudited)
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
VALUE VALUE 2 PERFORMANCE PLUS OPPORTUNITY
(NCA) (NCB) (NCP) (NCO)
----------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost
$233,171,916, $48,289,593,
$275,344,898 and $164,195,374,
respectively) $ 234,107,006 $ 51,296,855 $ 268,659,465 $ 161,192,164
Cash 1,389,793 1,840,599 -- 939,001
Receivables:
Interest 3,051,582 639,674 4,459,590 2,268,228
Investments sold 791,950 -- 36,050 20,600
Other assets 14,037 7 78,257 46,216
----------------------------------------------------------------------------------------------------------------
Total assets 239,354,368 53,777,135 273,233,362 164,466,209
----------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- -- 73,197 --
Floating rate obligations 4,490,000 -- 7,105,000 4,285,000
Payables:
Investments purchased -- 3,426,561 -- --
Common share dividends 863,546 165,436 734,804 498,306
Preferred share dividends N/A N/A 4,889 2,808
Accrued expenses:
Management fees 112,338 27,565 143,854 91,370
Offering costs -- 15,000 -- --
Other 90,477 15,242 93,134 47,834
----------------------------------------------------------------------------------------------------------------
Total liabilities 5,556,361 3,649,804 8,154,878 4,925,318
---------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation
value N/A N/A 91,175,000 48,775,000
---------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares $ 233,798,007 $ 50,127,331 $ 173,903,484 $ 110,765,891
================================================================================================================
Common shares outstanding 25,253,681 3,287,900 12,939,442 8,143,348
================================================================================================================
Net asset value per Common share
outstanding (net assets
applicable to Common shares,
divided by Common shares
outstanding) $ 9.26 $ 15.25 $ 13.44 $ 13.60
================================================================================================================
NET ASSETS APPLICABLE TO COMMON
SHARES CONSIST OF:
----------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per
share $ 252,537 $ 32,879 $ 129,394 $ 81,433
Paid-in surplus 237,696,722 46,967,862 181,057,479 113,647,080
Undistributed (Over-distribution
of) net investment income 719,336 105,088 2,219,321 1,390,486
Accumulated net realized gain
(loss) from investments and
derivative transactions (5,805,678) 14,240 (2,817,277) (1,349,898)
Net unrealized appreciation
(depreciation) of investments 935,090 3,007,262 (6,685,433) (3,003,210)
----------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares $ 233,798,007 $ 50,127,331 $ 173,903,484 $ 110,765,891
================================================================================================================
Authorized shares:
Common 250,000,000 Unlimited 200,000,000 200,000,000
Preferred N/A N/A 1,000,000 1,000,000
================================================================================================================
N/A - Fund is not authorized to issue Preferred shares.
See accompanying notes to financial statements.
50 Nuveen Investments
CALIFORNIA CALIFORNIA CALIFORNIA
INVESTMENT QUALITY SELECT QUALITY QUALITY INCOME
(NQC) (NVC) (NUC)
----------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost
$293,021,067, $493,078,078 and
$474,565,254, respectively) $ 287,255,185 $ 483,888,045 $ 476,028,858
Cash 722,836 2,094,713 993,975
Receivables:
Interest 4,844,923 7,521,199 7,453,047
Investments sold 36,050 2,086,950 56,650
Other assets 77,521 99,665 118,328
----------------------------------------------------------------------------------------------------------------------------
Total assets 292,936,515 495,690,572 484,650,858
----------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- -- --
Floating rate obligations 14,230,000 20,585,000 18,210,000
Payables:
Investments purchased -- -- --
Common share dividends 830,721 1,456,102 1,449,765
Preferred share dividends 15,814 10,729 11,147
Accrued expenses:
Management fees 156,278 262,132 256,074
Offering costs -- -- --
Other 96,436 154,444 148,271
----------------------------------------------------------------------------------------------------------------------------
Total liabilities 15,329,249 22,468,407 20,075,257
----------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation
value 94,925,000 158,025,000 157,225,000
----------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares $ 182,682,266 $ 315,197,165 $ 307,350,601
============================================================================================================================
Common shares outstanding 13,580,232 23,088,470 21,980,090
============================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common
shares, divided by Common shares
outstanding) $ 13.45 $ 13.65 $ 13.98
============================================================================================================================
NET ASSETS APPLICABLE TO COMMON
SHARES CONSIST OF:
----------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per
share $ 135,802 $ 230,885 $ 219,801
Paid-in surplus 189,533,335 321,972,229 306,227,676
Undistributed (Over-distribution
of) net investment income 2,300,715 4,051,269 3,671,712
Accumulated net realized gain
(loss) from investments and
derivative transactions (3,521,704) (1,867,185) (4,232,192)
Net unrealized appreciation
(depreciation) of investments (5,765,882) (9,190,033) 1,463,604
----------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares $ 182,682,266 $ 315,197,165 $ 307,350,601
============================================================================================================================
Authorized shares:
Common 200,000,000 200,000,000 200,000,000
Preferred 1,000,000 1,000,000 1,000,000
============================================================================================================================
See accompanying notes to financial statements.
Nuveen Investments 51
| Statement of
| Operations Six Months Ended August 31, 2009 (Unaudited)
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
VALUE VALUE 2 PERFORMANCE PLUS OPPORTUNITY
(NCA) (NCB)* (NCP) (NCO)
-------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 6,671,397 $ 883,909 $ 7,904,953 $ 4,989,048
-------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 669,913 104,309 841,044 539,170
Preferred shares - auction fees N/A N/A 84,930 52,036
Preferred shares - dividend disbursing
agent fees N/A N/A 15,123 10,082
Shareholders' servicing agent fees and
expenses 14,995 840 8,565 5,317
Interest expense on floating rate
obligations 18,717 -- 31,115 19,859
Custodian's fees and expenses 21,950 4,261 30,945 21,285
Directors'/Trustees' fees and expenses 3,790 635 4,335 2,775
Professional fees 8,140 7,955 12,913 10,270
Shareholders' reports - printing and
mailing expenses 35,477 2,549 25,004 18,145
Stock exchange listing fees 4,675 -- 4,647 4,641
Investor relations expense 9,478 1,900 7,363 4,803
Other expenses 4,998 2,135 15,415 13,737
-------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit 792,133 124,584 1,081,399 702,120
Custodian fee credit (36) (76) (27) (97)
-------------------------------------------------------------------------------------------------------------------------
Net expenses 792,097 124,508 1,081,372 702,023
-------------------------------------------------------------------------------------------------------------------------
Net investment income 5,879,300 759,401 6,823,581 4,287,025
-------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments 21,364 14,240 (21,481) (78,988)
Change in net unrealized appreciation
(depreciation) of investments 9,706,560 3,007,262 8,913,426 4,636,665
-------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) 9,727,924 3,021,502 8,891,945 4,557,677
-------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income N/A N/A (305,755) (172,024)
From accumulated net realized gains N/A N/A (67,799) --
-------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions to
Preferred shareholders N/A N/A (373,554) (172,024)
-------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
operations $ 15,607,224 $ 3,780,903 $ 15,341,972 $ 8,672,678
=========================================================================================================================
* For the period April 28, 2009 (commencement of operations) through August
31, 2009.
N/A Fund is not authorized to issue Preferred shares.
See accompanying notes to financial statements.
52 Nuveen Investments
CALIFORNIA CALIFORNIA CALIFORNIA
INVESTMENT QUALITY SELECT QUALITY QUALITY INCOME
(NQC) (NVC) (NUC)
-------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 8,441,315 $ 14,717,921 $ 14,418,192
-------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 895,573 1,513,741 1,502,025
Preferred shares - auction fees 88,423 151,430 152,613
Preferred shares - dividend disbursing agent
fees 10,082 15,123 15,123
Shareholders' servicing agent fees and
expenses 7,948 10,696 9,926
Interest expense on floating rate obligations 61,106 90,783 79,178
Custodian's fees and expenses 26,316 52,858 43,530
Directors'/Trustees' fees and expenses 4,559 7,834 7,806
Professional fees 12,609 18,055 18,572
Shareholders' reports - printing and mailing
expenses 26,587 40,272 39,320
Stock exchange listing fees 4,647 4,647 4,636
Investor relations expense 8,004 12,020 11,988
Other expenses 15,714 20,166 19,235
------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit 1,161,568 1,937,625 1,903,952
Custodian fee credit (18) (76) (70)
------------------------------------------------------------------------------------------------------------
Net expenses 1,161,550 1,937,549 1,903,882
------------------------------------------------------------------------------------------------------------
Net investment income 7,279,765 12,780,372 12,514,310
------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments (91,494) (23,167) (1,419,289)
Change in net unrealized appreciation
(depreciation) of investments 9,568,835 19,072,000 14,345,156
------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) 9,477,341 19,048,833 12,925,867
------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (239,619) (400,997) (411,404)
From accumulated net realized gains (266,062) (450,876) (474,141)
------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common
shares from distributions to Preferred
shareholders (505,681) (851,873) (885,545)
------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
operations $ 16,251,425 $ 30,977,332 $ 24,554,632
============================================================================================================
See accompanying notes to financial statements.
Nuveen Investments 53
| Statement of
| Changes in Net Assets(Unaudited)
CALIFORNIA VALUE (NCA) CALIFORNIA VALUE 2 (NCB)
----------------------------------------------------- -----------------------------
SIX MONTHS SIX MONTHS FOR THE PERIOD 4/28/09
ENDED ENDED YEAR ENDED (COMMENCEMENT OF OPERATIONS)
8/31/09 2/28/09 8/31/08 THROUGH 8/31/09
----------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 5,879,300 $ 5,875,451 $ 11,743,530 $ 759,401
Net realized gain (loss) from:
Investments 21,364 (5,670,030) 1,595,437 14,240
Forward swaps -- -- 1,544,426 --
Change in net unrealized appreciation
(depreciation) of:
Investments 9,706,560 (12,226,342) (6,882,534) 3,007,262
Forward swaps -- -- (642,663) --
Distributions to Preferred Shareholders:
From net investment income N/A N/A N/A N/A
From accumulated net realized gains N/A N/A N/A N/A
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
operations 15,607,224 (12,020,921) 7,358,196 3,780,903
-----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (5,757,840) (5,757,840) (11,057,213) (654,313)
From accumulated net realized gains -- (3,257,725) (451,828) --
-----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions to
Common shareholders (5,757,840) (9,015,565) (11,509,041) (654,313)
-----------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Proceeds from sale of shares, net of
offering costs adjustments -- -- -- 46,900,466
Net proceeds from shares issued to
shareholders due to reinvestment of
distributions -- -- 114,284 --
Repurchased -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
capital share transactions -- -- 114,284 46,900,466
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares 9,849,384 (21,036,486) (4,036,561) 50,027,056
Net assets applicable to Common shares
at the beginning of period 223,948,623 244,985,109 249,021,670 100,275
-----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares
at the end of period $ 233,798,007 $ 223,948,623 $ 244,985,109 $ 50,127,331
===================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the end of
period $ 719,336 $ 597,876 $ 488,787 $ 105,088
===================================================================================================================================
N/A - Fund is not authorized to issue Preferred shares.
See accompanying notes to financial statements.
54 Nuveen Investments
CALIFORNIA PERFORMANCE PLUS (NCP) CALIFORNIA OPPORTUNITY (NCO)
-------------------------------------------- --------------------------------------------
SIX MONTHS SIX MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED YEAR ENDED ENDED ENDED YEAR ENDED
8/31/09 2/28/09 8/31/08 8/31/09 2/28/09 8/31/08
-----------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 6,823,581 $ 6,166,860 $ 12,763,907 $ 4,287,025 $ 4,096,798 $ 8,237,620
Net realized gain (loss) from:
Investments (21,481) (2,747,246) 1,252,724 (78,988) (1,281,316) 240,166
Forward swaps -- -- 481,957 -- -- 319,511
Change in net unrealized appreciation
(depreciation) of:
Investments 8,913,426 (16,103,772) (8,379,980) 4,636,665 (9,841,190) (4,808,766)
Forward swaps -- -- (146,052) -- -- 1,358
Distributions to Preferred
Shareholders:
From net investment income (305,755) (1,519,501) (3,265,290) (172,024) (1,003,786) (2,153,159)
From accumulated net realized
gains (67,799) (329,805) (348,912) -- (140,553) (215,479)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets applicable to Common
shares from operations 15,341,972 (14,533,464) 2,358,354 8,672,678 (8,170,047) 1,621,251
-----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (4,942,939) (4,512,080) (8,917,838) (3,200,864) (2,867,056) (5,776,585)
From accumulated net realized gains -- (1,128,020) (963,355) -- (379,007) (607,718)
-----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (4,942,939) (5,640,100) (9,881,193) (3,200,864) (3,246,063) (6,384,303)
-----------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Proceeds from sale of shares, net of
offering costs adjustments -- -- -- -- -- --
Net proceeds from shares issued to
shareholders due to reinvestment
of distributions -- -- -- -- -- --
Repurchased (118,737) (146,188) -- (187,479) (66,830) --
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets applicable to Common
shares from capital share
transactions (118,737) (146,188) -- (187,479) (66,830) --
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets applicable to Common shares 10,280,296 (20,319,752) (7,522,839) 5,284,335 (11,482,940) (4,763,052)
Net assets applicable to Common
shares at the beginning of period 163,623,188 183,942,940 191,465,779 105,481,556 116,964,496 121,727,548
-----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $ 173,903,484 $ 163,623,188 $ 183,942,940 $ 110,765,891 $ 105,481,556 $ 116,964,496
===================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the end
of period $ 2,219,321 $ 644,434 $ 511,590 $ 1,390,486 $ 476,349 $ 233,032
===================================================================================================================================
See accompanying notes to financial statements.
Nuveen Investments 55
| Statement of
| Changes in Net Assets (Unaudited) (continued)
CALIFORNIA INVESTMENT QUALITY (NQC) CALIFORNIA SELECT QUALITY (NVC)
-------------------------------------------- --------------------------------------------
SIX MONTHS SIX MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED YEAR ENDED ENDED ENDED YEAR ENDED
8/31/09 2/28/09 8/31/08 8/31/09 2/28/09 8/31/08
-----------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 7,279,765 $ 6,621,510 $ 13,563,209 $ 12,780,372 $ 11,604,636 $ 23,467,452
Net realized gain (loss) from:
Investments (91,494) (3,826,201) 1,706,500 (23,167) (2,374,000) 2,014,812
Forward swaps -- -- 1,916,826 -- -- 3,564,177
Change in net unrealized appreciation
(depreciation) of:
Investments 9,568,835 (16,483,350) (9,296,655) 19,072,000 (30,264,282) (14,542,844)
Forward swaps -- -- (579,016) -- -- (1,075,627)
Distributions to Preferred
Shareholders:
From net investment income (239,619) (1,461,245) (3,599,218) (400,997) (2,594,564) (5,994,043)
From accumulated net realized
gains (266,062) (332,447) (59,134) (450,876) (589,101) (410,088)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets applicable to Common
shares from operations 16,251,425 (15,481,733) 3,652,512 30,977,332 (24,217,311) 7,023,839
-----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON
SHAREHOLDERS
From net investment income (5,404,933) (4,929,626) (9,784,557) (9,581,716) (8,396,144) (16,098,392)
From accumulated net realized gains -- (2,524,565) (162,963) -- (4,082,422) (1,112,547)
-----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable
to Common shares from
distributions to Common
shareholders (5,404,933) (7,454,191) (9,947,520) (9,581,716) (12,478,566) (17,210,939)
-----------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Proceeds from sale of shares,
net of offering costs
adjustments -- -- -- -- -- --
Net proceeds from shares issued
to shareholders due to
reinvestment of distributions -- -- -- -- -- --
Repurchased -- -- -- (217,271) (200,163) --
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets applicable to Common
shares from capital share
transactions -- -- -- (217,271) (200,163) --
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets applicable to Common
shares 10,846,492 (22,935,924) (6,295,008) 21,178,345 (36,896,040) (10,187,100)
Net assets applicable to Common
shares at the beginning of
period 171,835,774 194,771,698 201,066,706 294,018,820 330,914,860 341,101,960
-----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $ 182,682,266 $ 171,835,774 $ 194,771,698 $ 315,197,165 $ 294,018,820 $ 330,914,860
===================================================================================================================================
Undistributed (Over-distribution
of) net investment income at
the end of period $ 2,300,715 $ 665,502 $ 435,127 $ 4,051,269 $ 1,253,610 $ 640,817
===================================================================================================================================
See accompanying notes to financial statements.
56 Nuveen Investments
CALIFORNIA QUALITY INCOME (NUC)
------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED YEAR ENDED
8/31/09 2/28/09 8/31/08
-----------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 12,514,310 $ 11,427,787 $ 22,926,029
Net realized gain (loss) from:
Investments (1,419,289) (3,266,270) 1,242,906
Forward swaps -- -- 3,851,151
Change in net unrealized appreciation
(depreciation) of:
Investments 14,345,156 (25,106,877) (9,075,658)
Forward swaps -- -- (1,162,220)
Distributions to Preferred
Shareholders:
From net investment income (411,404) (2,539,390) (6,363,248)
From accumulated net realized
gains (474,141) (559,269) --
-----------------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets applicable to Common
shares from operations 24,554,632 (20,044,019) 11,418,960
-----------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (9,341,539) (8,125,415) (15,821,435)
From accumulated net realized gains -- (3,624,507) --
-----------------------------------------------------------------------------------------------------------
Decrease in net assets applicable
to Common shares from
distributions to Common
shareholders (9,341,539) (11,749,922) (15,821,435)
-----------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Proceeds from sale of shares,
net of offering costs
adjustments -- -- --
Net proceeds from shares issued to
shareholders due to reinvestment
of distributions -- -- --
Repurchased (235,763) (186,501) --
-----------------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets applicable to Common
shares from capital share
transactions (235,763) (186,501) --
-----------------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets applicable to Common
shares 14,977,330 (31,980,442) (4,402,475)
Net assets applicable to Common
shares at the beginning of period 292,373,271 324,353,713 328,756,188
-----------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $ 307,350,601 $ 292,373,271 $ 324,353,713
===========================================================================================================
Undistributed (Over-distribution
of) net investment income at the
end of period $ 3,671,712 $ 910,345 $ 156,979
===========================================================================================================
See accompanying notes to financial statements.
Nuveen Investments 57
| Notes to
| Financial Statements(Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The funds covered in this report and their corresponding Common share stock
exchange symbols are Nuveen California Municipal Value Fund, Inc. (NCA), Nuveen
California Municipal Value Fund 2 (NCB), Nuveen California Performance Plus
Municipal Fund, Inc. (NCP), Nuveen California Municipal Market Opportunity Fund,
Inc. (NCO), Nuveen California Investment Quality Municipal Fund, Inc. (NQC),
Nuveen California Select Quality Municipal Fund, Inc. (NVC) and Nuveen
California Quality Income Municipal Fund, Inc. (NUC) (collectively, the
"Funds"). Common shares California Value (NCA), California Performance Plus
(NCP), California Opportunity (NCO), California Investment Quality (NQC),
California Select Quality (NVC) and California Quality Income (NUC) are traded
on the New York Stock Exchange while Common shares of California Value 2 (NCB)
are traded on the NYSE Amex. The Funds are registered under the Investment
Company Act of 1940, as amended, as closed-end management investment companies.
Prior to the commencement of operations, California Value 2 (NCB) had no
operations other than those related to organizational matters, the initial
capital contribution of $100,275 by Nuveen Asset Management (the "Adviser"), a
wholly owned subsidiary of Nuveen Investments, Inc. ("Nuveen"), and the
recording of the organization expense ($15,000) and its reimbursement by Nuveen
Investments, LLC, also a wholly owned subsidiary of Nuveen.
Each Fund seeks to provide current income exempt from both regular federal and
California state income taxes by investing primarily in a portfolio of municipal
obligations issued by state and local government authorities within the state of
California or certain U.S. territories.
During the prior fiscal period, the Board of Directors/Trustees of the Funds
approved a change in the Funds' fiscal and tax year end from August 31, to
February 28/29.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with US
generally accepted accounting principles.
Investment Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors/Trustees. Prices
of forward swap contracts are also provided by an independent pricing service
approved by each Fund's Board of Directors/Trustees. When market price quotes
are not readily available (which is usually the case for municipal securities),
the pricing service or, in the absence of a pricing service for a particular
investment or derivative instrument, the Board of Directors/Trustees of the
Fund, or its designee, may establish fair value using a wide variety of market
data including yields or prices of investments of comparable quality, type of
issue, coupon, maturity and rating, market quotes or indications of value from
security dealers, evaluations of anticipated cash flows or collateral, general
market conditions and other information and analysis, including the obligor's
credit characteristics considered relevant. Temporary investments in securities
that have variable rate and demand features qualifying them as short-term
investments are valued at amortized cost, which approximates value.
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and
losses from transactions are determined on the specific identification method.
Investments purchased on a when-issued/delayed delivery basis may have extended
settlement periods. Any investments so purchased are subject to market
fluctuation during this period. The Funds have instructed the custodian to
segregate assets with a current value at least equal to the amount of the
when-issued/delayed delivery purchase commitments. At August 31, 2009,
California Value 2 (NCB) had outstanding when-issued/delayed delivery purchase
commitments of $2,953,990. There were no such outstanding purchase commitments
in any of the other Funds.
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
Investment income also includes paydown gains and losses, if any.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute substantially all of its net investment income and net
capital gains to shareholders and to otherwise comply with the requirements of
Subchapter M of the Internal Revenue Code applicable to regulated investment
companies. Therefore, no federal income tax provision is required. Furthermore,
each Fund intends to satisfy conditions which will enable interest from
municipal securities, which is exempt from regular federal and California state
income taxes, to retain such tax-exempt
58 Nuveen Investments
status when distributed to shareholders of the Funds. Net realized capital gains
and ordinary income distributions paid by the Funds are subject to federal
taxation.
For all open tax years and all major taxing jurisdictions, management of the
Funds has concluded that there are no significant uncertain tax positions that
would require recognition in the financial statements. Open tax years are those
that are open for examination by taxing authorities (i.e., generally the last
four tax year ends and the interim tax period since then). Furthermore,
management of the Funds is also not aware of any tax positions for which it is
reasonably possible that the total amounts of unrecognized tax benefits will
significantly change in the next twelve months.
Dividends and Distributions to Common Shareholders
Dividends from tax-exempt net investment income are declared monthly. Net
realized capital gains and/or market discount from investment transactions, if
any, are distributed to shareholders at least annually. Furthermore, capital
gains are distributed only to the extent they exceed available capital loss
carryforwards.
Distributions to Common shareholders of tax-exempt net investment income, net
realized capital gains and/or market discount, if any, are recorded on the
ex-dividend date. The amount and timing of distributions are determined in
accordance with federal income tax regulations, which may differ from US
generally accepted accounting principles.
Preferred Shares
California Value (NCA) and California Value 2 (NCB) are not authorized to issue
Preferred shares. The following Funds have issued and outstanding Preferred
shares, $25,000 stated value per share, as a means of effecting financial
leverage. Each Fund's Preferred shares are issued in more than one Series. The
dividend rate paid by the Funds on each Series is determined every seven days,
pursuant to a dutch auction process overseen by the auction agent, and is
payable at the end of each rate period. As of August 31, 2009, the number of
Preferred shares outstanding, by Series and in total, for each Fund is as
follows:
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
PERFORMANCE CALIFORNIA INVESTMENT SELECT QUALITY
PLUS OPPORTUNITY QUALITY QUALITY INCOME
(NCP) (NCO) (NQC) (NVC) (NUC)
---------------------------------------------------------------------------------------------------------------------------
Number of shares:
Series M -- -- 3,051 -- 1,189
Series T 1,548 -- -- 1,975 --
Series W 551 1,500 746 1,383 2,550
Series TH -- -- -- 2,963 --
Series F 1,548 451 -- -- 2,550
---------------------------------------------------------------------------------------------------------------------------
Total 3,647 1,951 3,797 6,321 6,289
===========================================================================================================================
Beginning in February 2008, more shares for sale were submitted in the regularly
scheduled auctions for the Preferred shares issued by the Funds than there were
offers to buy. This meant that these auctions "failed to clear," and that many
Preferred shareholders who wanted to sell their shares in these auctions were
unable to do so. Preferred shareholders unable to sell their shares received
distributions at the "maximum rate" applicable to failed auctions as calculated
in accordance with the pre-established terms of the Preferred shares.
These developments have generally not affected the management or investment
policies of the Funds. However, one continuing implication of these auction
failures for Common shareholders is that the Funds' cost of leverage likely has
been incrementally higher at times than it otherwise would have been had the
auctions continued to be successful. As a result, the Funds' future Common share
earnings may likely have been incrementally lower than they otherwise might have
been. As of August 31, 2009, the aggregate amount of outstanding Preferred
shares redeemed by each Fund is as follows:
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
PERFORMANCE CALIFORNIA INVESTMENT SELECT QUALITY
PLUS OPPORTUNITY QUALITY QUALITY INCOME
(NCP) (NCO) (NQC) (NVC) (NUC)
---------------------------------------------------------------------------------------------------------------------------
Preferred shares redeemed, at liquidation value $14,825,000 $19,225,000 $17,075,000 $33,975,000 $27,775,000
===========================================================================================================================
Effective May 1, 2009, auction participation fees with respect to auctions that
have failed have been reduced from 25 bps (annualized) to 15 bps (annualized).
All auction participants have signed new agreements incorporating this change.
Inverse Floating Rate Securities
Each Fund is authorized to invest in inverse floating rate securities. An
inverse floating rate security is created by depositing a municipal bond,
typically with a fixed interest rate, into a special purpose trust created by a
broker-dealer. In turn, this trust (a) issues floating rate certificates, in
face amounts equal to some fraction of the deposited bond's par amount or market
value, that typically pay short-term tax-exempt interest rates to third parties,
and
Nuveen Investments 59
| Notes to
| Financial Statements (Unaudited) (continued)
(b) issues to a long-term investor (such as one of the Funds) an inverse
floating rate certificate (sometimes referred to as an "inverse floater") that
represents all remaining or residual interest in the trust. The income received
by the inverse floater holder varies inversely with the short-term rate paid to
the floating rate certificates' holders, and in most circumstances the inverse
floater holder bears substantially all of the underlying bond's downside
investment risk and also benefits disproportionately from any potential
appreciation of the underlying bond's value. The price of an inverse floating
rate security will be more volatile than that of the underlying bond because the
interest rate is dependent on not only the fixed coupon rate of the underlying
bond but also on the short-term interest paid on the floating rate certificates,
and because the inverse floating rate security essentially bears the risk of
loss of the greater face value of the underlying bond.
A Fund may purchase an inverse floating rate security in a secondary market
transaction without first owning the underlying bond (referred to as an
"externally-deposited inverse floater"), or instead by first selling a
fixed-rate bond to a broker-dealer for deposit into the special purpose trust
and receiving in turn the residual interest in the trust (referred to as a
"self-deposited inverse floater"). The inverse floater held by a Fund gives the
Fund the right (a) to cause the holders of the floating rate certificates to
tender their notes at par, and (b) to have the broker transfer the fixed-rate
bond held by the trust to the Fund, thereby collapsing the trust. An investment
in an externally-deposited inverse floater is identified in the Portfolio of
Investments as "(IF) - Inverse floating rate investment." An investment in a
self-deposited inverse floater is accounted for as a financing transaction in
accordance with Statement of Financial Accounting Standards No. 140 (SFAS No.
140) "Accounting for Transfers and Servicing of Financial Assets and
Extinguishment of Liabilities." In such instances, a fixed-rate bond deposited
into a special purpose trust is identified in the Portfolio of Investments as
"(UB) - Underlying bond of an inverse floating rate trust," with the Fund
accounting for the short-term floating rate certificates issued by the trust as
"Floating rate obligations" on the Statement of Assets and Liabilities. In
addition, the Fund reflects in "Investment Income" the entire earnings of the
underlying bond and recognizes the related interest paid to the holders of the
short-term floating rate certificates as "Interest expense on floating rate
obligations" on the Statement of Operations.
During the six months ended August 31, 2009, each Fund invested in externally
deposited inverse floaters and/or self-deposited inverse floaters.
Each Fund may also enter into shortfall and forbearance agreements (sometimes
referred to as a "recourse trust" or "credit recovery swap") (such agreements
referred to herein as "Recourse Trusts") with a broker-dealer by which a Fund
agrees to reimburse the broker-dealer, in certain circumstances, for the
difference between the liquidation value of the fixed-rate bond held by the
trust and the liquidation value of the floating rate certificates issued by the
trust plus any shortfalls in interest cash flows. Under these agreements, a
Fund's potential exposure to losses related to or on inverse floaters may
increase beyond the value of a Fund's inverse floater investments as a Fund may
potentially be liable to fulfill all amounts owed to holders of the floating
rate certificates. At period end, any such shortfall is recognized as
"Unrealized depreciation on Recourse Trusts" on the Statement of Assets and
Liabilities.
At August 31, 2009, the Funds were not invested in externally-deposited Recourse
Trusts.
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
CALIFORNIA CALIFORNIA PERFORMANCE CALIFORNIA INVESTMENT SELECT QUALITY
VALUE VALUE 2 PLUS OPPORTUNITY QUALITY QUALITY INCOME
(NCA) (NCB)* (NCP) (NCO) (NQC) (NVC) (NUC)
----------------------------------------------------------------------------------------------------------------------------------
Maximum exposure to Recourse Trusts $ -- $ -- $ -- $ -- $ -- $ -- $ --
==================================================================================================================================
The average floating rate obligations outstanding and average annual interest
rate and fees related to self-deposited inverse floaters during the six months
ended August 31, 2009, were as follows:
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
CALIFORNIA CALIFORNIA PERFORMANCE CALIFORNIA INVESTMENT SELECT QUALITY
VALUE VALUE 2 PLUS OPPORTUNITY QUALITY QUALITY INCOME
(NCA) (NCB)* (NCP) (NCO) (NQC) (NVC) (NUC)
----------------------------------------------------------------------------------------------------------------------------------
Average floating rate obligations $4,490,000 $ -- $7,312,337 $4,601,929 $14,230,000 $21,393,614 $18,592,092
Average annual interest rate and fees .83% --% .84% .86% .85% .84% .84%
==================================================================================================================================
* Fund did not invest in self-deposited inverse floaters during the period
April 28, 2009 (commencement of operations) through August 31, 2009.
Swap Contracts
Each Fund is authorized to enter into forward interest rate swap contracts
consistent with their investment objectives and policies to reduce, increase or
otherwise alter its risk profile or to alter its portfolio characteristics (i.e.
duration, yield curve positioning and credit quality).
Each Fund is subject to interest rate risk in the normal course of pursuing its
investment objectives. Each Fund's use of forward interest rate swap
transactions is intended to help the Fund manage its overall interest rate
sensitivity, either shorter or longer, generally to more closely align the
Fund's interest rate sensitivity with that of the broader municipal market.
Forward interest rate swap transactions involve each Fund's agreement with a
counterparty to pay, in the future, a fixed or variable rate payment in exchange
for the counterparty paying the Fund a variable or fixed rate payment, the
accruals for which would begin at a specified date in the future (the "effective
date"). The amount of the payment obligation is based on the notional amount of
the swap contract and the termination date of the swap (which is akin to a
bond's maturity). The value of the Fund's swap commitment would increase or
decrease based primarily on the extent to which long-term interest rates for
bonds having a maturity of the swap's
60 Nuveen Investments
termination date increases or decreases. Forward interest rate swap contracts
are valued daily. The net amount recorded on these transactions for each
counterparty is recognized on the Statement of Assets and Liabilities as
"Unrealized appreciation or depreciation on forward swaps" with the change
during the fiscal period recognized on the Statement of Operations as "Change in
net unrealized appreciation (depreciation) of forward swaps."
The Funds may terminate a swap contract prior to the effective date, at which
point a realized gain or loss is recognized. When a forward swap is terminated,
it ordinarily does not involve the delivery of securities or other underlying
assets or principal, but rather is settled in cash on a net basis. Net realized
gains and losses during the fiscal period are recognized on the Statement of
Operations as "Net realized gain (loss) from forward swaps." Each Fund intends,
but is not obligated, to terminate its forward swaps before the effective date.
Accordingly, the risk of loss with respect to the swap counterparty on such
transactions is limited to the credit risk associated with a counterparty
failing to honor its commitment to pay any realized gain to the Fund upon
termination. The Funds did not invest in forward interest rate swap transactions
during the six months ended August 31, 2009.
Market and Counterparty Credit Risk
In the normal course of business each Fund may invest in financial instruments
and enter into financial transactions where risk of potential loss exists due to
changes in the market (market risk) or failure of the other party to the
transaction to perform (counterparty credit risk). The potential loss could
exceed the value of the financial assets recorded on the financial statements.
Financial assets, which potentially expose each Fund to counterparty credit
risk, consist principally of cash due from counterparties on forward, option and
swap transactions. The extent of each Fund's exposure to counterparty credit
risk in respect to these financial assets approximates their carrying value as
recorded on the Statement of Assets and Liabilities. Futures contracts expose a
Fund to minimal counterparty credit risk as they are exchange traded and the
exchange's clearinghouse, which is counterparty to all exchange traded futures,
guarantees the futures contracts against default.
Each Fund helps manage counterparty credit risk by entering into agreements only
with counterparties the Adviser believes have the financial resources to honor
their obligations and by having the Adviser monitor the financial stability of
the counterparties. Additionally, counterparties may be required to pledge
collateral daily (based on the daily valuation of the financial asset) on behalf
of each Fund with a value approximately equal to the amount of any unrealized
gain above a pre-determined threshold. Reciprocally, when each Fund has an
unrealized loss, the Funds have instructed the custodian to pledge assets of the
Funds as collateral with a value approximately equal to the amount of the
unrealized loss above a pre-determined threshold. Collateral pledges are
monitored and subsequently adjusted if and when the valuations fluctuate, either
up or down, by at least the predetermined threshold amount.
Zero Coupon Securities
Each Fund is authorized to invest in zero coupon securities. A zero coupon
security does not pay a regular interest coupon to its holders during the life
of the security. Tax-exempt income to the holder of the security comes from
accretion of the difference between the original purchase price of the security
at issuance and the par value of the security at maturity and is effectively
paid at maturity. Such securities are included in the Portfolios of Investments
with a 0.000% coupon rate in their description. The market prices of zero coupon
securities generally are more volatile than the market prices of securities that
pay interest periodically.
Organization and Offering Costs
Nuveen Investments, LLC has agreed to reimburse all organizational costs
($15,000) and pay all Common share costs (other than the sales load) that exceed
$.03 per share of California Value 2 (NCB). California Municipal Value 2's (NCB)
share of Common share offering costs ($98,427) were recorded as reductions of
the proceeds from the sale of Common shares.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by net credits earned on each Fund's cash on
deposit with the bank. Such deposit arrangements are an alternative to overnight
investments. Credits for cash balances may be offset by charges for any days on
which a Fund overdraws its account at the custodian bank.
Indemnifications
Under the Funds' organizational documents, their Officers and Directors/Trustees
are indemnified against certain liabilities arising out of the performance of
their duties to the Funds. In addition, in the normal course of business, the
Funds enter into contracts that provide general indemnifications to other
parties. The Funds' maximum exposure under these arrangements is unknown as this
would involve future claims that may be made against the Funds that have not yet
occurred. However, the Funds have not had prior claims or losses pursuant to
these contracts and expect the risk of loss to be remote.
Use of Estimates
The preparation of financial statements in conformity with US generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of increases and decreases in net
assets applicable to Common shares from operations during the reporting period.
Actual results may differ from those estimates.
Nuveen Investments 61
| Notes to
| Financial Statements (Unaudited) (continued)
2. FAIR VALUE MEASUREMENTS
In determining the value of each Fund's investments various inputs are used.
These inputs are summarized in the three broad levels listed below:
Level 1 - Quoted prices in active markets for identical securities.
Level 2 - Other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3 - Significant unobservable inputs (including management's
assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not an indication of
the risk associated with investing in those securities. The following is a
summary of each Fund's fair value measurements as of August 31, 2009:
CALIFORNIA VALUE (NCA) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
-----------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $234,107,006 $ -- $234,107,006
===============================================================================================
CALIFORNIA VALUE 2 (NCB) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
-----------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $51,296,855 $ -- $51,296,855
===============================================================================================
CALIFORNIA PERFORMANCE PLUS (NCP) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
-----------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $266,664,465 $ -- $266,664,465
Short-Term Investments -- 1,995,000 -- 1,995,000
-----------------------------------------------------------------------------------------------
Total $ -- $268,659,465 $ -- $268,659,465
===============================================================================================
CALIFORNIA OPPORTUNITY (NCO) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
-----------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $161,192,164 $ -- $161,192,164
===============================================================================================
CALIFORNIA INVESTMENT QUALITY (NQC) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
-----------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $284,760,185 $ -- $284,760,185
Short-Term Investments -- 2,495,000 -- 2,495,000
-----------------------------------------------------------------------------------------------
Total $ -- $287,255,185 $ -- $287,255,185
===============================================================================================
CALIFORNIA SELECT QUALITY (NVC) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
-----------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $480,388,045 $ -- $480,388,045
Short-Term Investments -- 3,500,000 -- 3,500,000
-----------------------------------------------------------------------------------------------
Total $ -- $483,888,045 $ -- $483,888,045
===============================================================================================
CALIFORNIA QUALITY INCOME (NUC) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
-----------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $476,028,858 $ -- $476,028,858
===============================================================================================
3. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
During the current fiscal period, the Funds adopted the provisions of Statement
of Financial Accounting Standards No. 161 (SFAS No. 161)
"Disclosures about Derivative Instruments and Hedging Activities." This standard
is intended to enhance financial statement disclosures for derivative
instruments and hedging activities and enable investors to better understand: a)
how and why a fund uses derivative instruments; b) how derivative instruments
are accounted for; and c) how derivative instruments affect a fund's financial
position, results of operations and cash flows, if any. The Funds record
derivative instruments at fair value with changes in fair value recognized on
the Statement of Operations, when applicable. Even though the Funds' investments
in derivatives may represent economic hedges, they are considered to be
non-hedge transactions for SFAS No. 161 disclosure purposes. The Funds did not
invest in derivative instruments during the six months ended August 31, 2009.
62 Nuveen Investments
4. FUND SHARES
Common Shares
Transactions in Common shares were as follows:
CALIFORNIA VALUE (NCA) CALIFORNIA VALUE 2 (NCB)
----------------------------------------------- ---------------------------------------------
SIX MONTHS SIX MONTHS FOR THE PERIOD 4/28/2009
ENDED ENDED YEAR ENDED (COMMENCEMENT OF OPERATIONS)
8/31/09 2/28/09 8/31/08 THROUGH 8/31/09
------------------------------------------------------------------------------------------------------------------------------------
Common shares:
Sold* -- -- -- 3,280,900
Issued to shareholders due to
reinvestment of distributions -- -- 11,873 --
Repurchased -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Weighted average Common share:
Price per share repurchased -- -- -- --
Discount per share repurchased -- -- -- --
====================================================================================================================================
CALIFORNIA PERFORMANCE PLUS (NCP) CALIFORNIA OPPORTUNITY (NCO)
----------------------------------------------- ---------------------------------------------
SIX MONTHS SIX MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED YEAR ENDED ENDED ENDED YEAR ENDED
8/31/09 2/28/09 8/31/08 8/31/09 2/28/09 8/31/08
------------------------------------------------------------------------------------------------------------------------------------
Common shares:
Issued to shareholders due to
reinvestment of distributions -- -- -- -- -- --
Repurchased (11,800) (14,500) -- (18,300) (6,600) --
------------------------------------------------------------------------------------------------------------------------------------
Weighted average Common share:
Price per share repurchased $10.04 $10.06 -- $10.22 $10.11 --
Discount per share repurchased 19.69% 20.96% -- 19.64% 22.69% --
====================================================================================================================================
CALIFORNIA INVESTMENT QUALITY (NQC) CALIFORNIA SELECT QUALITY (NVC)
----------------------------------------------- ---------------------------------------------
SIX MONTHS SIX MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED YEAR ENDED ENDED ENDED YEAR ENDED
8/31/09 2/28/09 8/31/08 8/31/09 2/28/09 8/31/08
------------------------------------------------------------------------------------------------------------------------------------
Common shares:
Issued to shareholders due to
reinvestment of distributions -- -- -- -- -- --
Repurchased -- -- -- (21,200) (20,200) --
------------------------------------------------------------------------------------------------------------------------------------
Weighted average Common share:
Price per share repurchased -- -- -- $10.23 $9.89 --
Discount per share repurchased -- -- -- 19.12% 22.81% --
====================================================================================================================================
CALIFORNIA QUALITY INCOME (NUC)
---------------------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED YEAR ENDED
8/31/09 2/28/09 8/31/08
------------------------------------------------------------------------------------------------------------------------------------
Common shares:
Issued to shareholders due to
reinvestment of distributions -- -- --
Repurchased (22,100) (17,900) --
------------------------------------------------------------------------------------------------------------------------------------
Weighted average Common share:
Price per share repurchased $10.65 $10.40 --
Discount per share repurchased 19.10% 22.38% --
====================================================================================================================================
* California Value 2 (NCB) was the only Fund to sell shares of Common stock
during the six months ended August 31, 2009.
Nuveen Investments 63
| Notes to
| Financial Statements (Unaudited) (continued)
Preferred Shares
California Value (NCA) and California Value 2 (NCB) are not authorized to issue
Preferred shares. Transactions in Preferred shares were as follows:
CALIFORNIA PERFORMANCE PLUS (NCP)
-----------------------------------------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED YEAR ENDED
8/31/09 2/28/09 8/31/08
------------------------------- ----------------------------- -----------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares redeemed:
Series T -- $ -- 149 $3,725,000 103 $2,575,000
Series W -- -- 52 1,300,000 37 925,000
Series F -- -- 149 3,725,000 103 2,575,000
------------------------------------------------------------------------------------------------------------------------------------
Total -- $ -- 350 $8,750,000 243 $6,075,000
====================================================================================================================================
CALIFORNIA OPPORTUNITY (NCO)
-----------------------------------------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED YEAR ENDED
8/31/09 2/28/09 8/31/08
------------------------------- ----------------------------- -----------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares redeemed:
Series W 405 $10,125,000 295 $7,375,000 -- $ --
Series F -- -- 69 1,725,000 -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 405 $10,125,000 364 $9,100,000 -- $ --
====================================================================================================================================
CALIFORNIA INVESTMENT QUALITY (NQC)
-----------------------------------------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED YEAR ENDED
8/31/09 2/28/09 8/31/08
------------------------------- ----------------------------- -----------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares redeemed:
Series M -- $ -- -- $ -- 549 $13,725,000
Series W -- -- -- -- 134 3,350,000
------------------------------------------------------------------------------------------------------------------------------------
Total -- $ -- -- $ -- 683 $17,075,000
====================================================================================================================================
CALIFORNIA SELECT QUALITY (NVC)
-----------------------------------------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED YEAR ENDED
8/31/09 2/28/09 8/31/08
------------------------------- ----------------------------- -----------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares redeemed:
Series T 76 $1,900,000 65 $1,625,000 284 $ 7,100,000
Series W 54 1,350,000 44 1,100,000 199 4,975,000
Series TH 115 2,875,000 96 2,400,000 426 10,650,000
------------------------------------------------------------------------------------------------------------------------------------
Total 245 $6,125,000 205 $5,125,000 909 $22,725,000
====================================================================================================================================
CALIFORNIA QUALITY INCOME (NUC)
-----------------------------------------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED YEAR ENDED
8/31/09 2/28/09 8/31/08
------------------------------- ----------------------------- -----------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares redeemed:
Series M 60 $1,500,000 -- $ -- 151 $ 3,775,000
Series W 126 3,150,000 -- -- 324 8,100,000
Series F 126 3,150,000 -- -- 324 8,100,000
------------------------------------------------------------------------------------------------------------------------------------
Total 312 $7,800,000 -- $ -- 799 $19,975,000
====================================================================================================================================
64 Nuveen Investments
5. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities but excluding short-term investments)
during the six months ended August 31, 2009, were as follows:
CALIFORNIA
CALIFORNIA CALIFORNIA PERFORMANCE CALIFORNIA
VALUE VALUE 2 PLUS OPPORTUNITY
(NCA) (NCB)* (NCP) (NCO)
---------------------------------------------------------------------------------------------
Purchases $ 402,579 $51,275,274 $ -- $ 3,182,405
Sales and maturities 2,011,950 3,045,454 1,556,669 12,832,667
=============================================================================================
CALIFORNIA CALIFORNIA CALIFORNIA
INVESTMENT SELECT QUALITY
QUALITY QUALITY INCOME
(NQC) (NVC) (NUC)
---------------------------------------------------------------------------------------------
Purchases $ -- $ 6,156,911 $18,653,794
Sales and maturities 3,457,750 14,735,124 17,461,215
=============================================================================================
* For the period April 28, 2009 (commencement of operations) through August
31, 2009.
6. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to the timing differences in recognizing taxable market discount,
timing differences in recognizing certain gains and losses on investment
transactions and the treatment of investments in inverse floating rate
transactions subject to SFAS No. 140, if any. To the extent that differences
arise that are permanent in nature, such amounts are reclassified within the
capital accounts on the Statement of Assets and Liabilities presented in the
annual report, based on their federal tax basis treatment; temporary differences
do not require reclassification. Temporary and permanent differences do not
impact the net asset values of the Funds.
At August 31, 2009, the cost of investments was as follows:
CALIFORNIA
CALIFORNIA CALIFORNIA PERFORMANCE CALIFORNIA
VALUE VALUE 2 PLUS OPPORTUNITY
(NCA) (NCB) (NCP) (NCO)
----------------------------------------------------------------------------------------------------------
Cost of Investments $228,702,294 $48,258,079 $268,094,491 $159,847,884
==========================================================================================================
CALIFORNIA CALIFORNIA CALIFORNIA
INVESTMENT SELECT QUALITY
QUALITY QUALITY INCOME
(NQC) (NVC) (NUC)
----------------------------------------------------------------------------------------------------------
Cost of Investments $278,672,096 $472,464,310 $456,428,876
==========================================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at August 31, 2009, were as follows:
CALIFORNIA
CALIFORNIA CALIFORNIA PERFORMANCE CALIFORNIA
VALUE VALUE 2 PLUS OPPORTUNITY
(NCA) (NCB) (NCP) (NCO)
----------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $ 13,361,680 $3,067,189 $ 8,644,647 $ 6,041,638
Depreciation (12,446,785) (28,413) (15,186,667) (8,981,577)
----------------------------------------------------------------------------------------------------------
Net unrealized appreciation
(depreciation) of investments $ 914,895 $3,038,776 $ (6,542,020) $(2,939,939)
==========================================================================================================
CALIFORNIA CALIFORNIA CALIFORNIA
INVESTMENT SELECT QUALITY
QUALITY QUALITY INCOME
(NQC) (NVC) (NUC)
----------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $ 9,242,130 $ 18,354,101 $ 20,781,625
Depreciation (14,888,266) (27,516,840) (19,389,120)
----------------------------------------------------------------------------------------------------------
Net unrealized appreciation
(depreciation) of investments $ (5,646,136) $ (9,162,739) $ 1,392,505
==========================================================================================================
Nuveen Investments 65
| Notes to
| Financial Statements (Unaudited) (continued)
The tax components of undistributed net tax-exempt income, net ordinary income
and net long-term capital gains at February 28, 2009, the Funds' last tax year
end, were as follows:
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
CALIFORNIA PERFORMANCE CALIFORNIA INVESTMENT SELECT QUALITY
VALUE PLUS OPPORTUNITY QUALITY QUALITY INCOME
(NCA) (NCP) (NCO) (NQC) (NVC) (NUC)
---------------------------------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income * $1,462,541 $1,568,569 $1,055,091 $1,688,789 $3,149,553 $2,816,621
Undistributed net ordinary income ** -- -- -- 83,341 531,361 360,260
Undistributed net long-term capital gains -- 81,057 -- 515,283 390,678 539,793
=================================================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on February 3, 2009, paid on March 2, 2009.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
The tax character of distributions paid during the six months ended February 28,
2009, the Funds' last tax year end, and during the tax year ended August 31,
2008 was designated for purposes of the dividends paid deduction as follows:
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
CALIFORNIA PERFORMANCE CALIFORNIA INVESTMENT SELECT QUALITY
VALUE PLUS OPPORTUNITY QUALITY QUALITY INCOME
SIX MONTHS ENDED FEBRUARY 28, 2009 (NCA) (NCP) (NCO) (NQC) (NVC) (NUC)
---------------------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $5,718,780 $5,707,942 $3,739,785 $6,056,724 $10,375,312 $10,102,216
Distributions from net ordinary income ** 1,467,618 -- 136,923 395,027 2,686,610 1,677,624
Distributions from net long-term capital gains 1,791,287 1,457,825 382,913 2,461,985 1,984,913 2,506,152
=================================================================================================================================
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
CALIFORNIA PERFORMANCE CALIFORNIA INVESTMENT SELECT QUALITY
VALUE PLUS OPPORTUNITY QUALITY QUALITY INCOME
2008 (NCA) (NCP) (NCO) (NQC) (NVC) (NUC)
---------------------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $11,056,779 $12,093,815 $7,788,970 $13,039,199 $22,149,317 $22,202,204
Distributions from net ordinary income ** -- 120,294 156,931 564,093 -- 44,856
Distributions from net long-term capital gains 451,828 1,312,267 823,197 -- 1,522,635 --
=================================================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
At February 28, 2009, the Funds' last tax year end, the Funds had unused capital
loss carryforwards available for federal income tax purposes to be applied
against future capital gains, if any. If not applied, the carryforwards will
expire as follows:
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
CALIFORNIA PERFORMANCE CALIFORNIA INVESTMENT SELECT QUALITY
VALUE PLUS OPPORTUNITY QUALITY QUALITY INCOME
(NCA) (NCP) (NCO) (NQC) (NVC) (NUC)
---------------------------------------------------------------------------------------------------------------------------------
Expiration: February 28, 2017 $4,394,352 $399,209 $442,824 $518,345 $2,317,690 $1,333,051
=================================================================================================================================
The Funds have elected to defer net realized losses from investments incurred
from November 1, 2008 through February 28, 2009, the Funds' last tax year end,
("post-October losses") in accordance with federal income tax regulations.
Post-October losses are treated as having arisen on the first day of the current
fiscal year:
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
CALIFORNIA PERFORMANCE CALIFORNIA INVESTMENT SELECT QUALITY
VALUE PLUS OPPORTUNITY QUALITY QUALITY INCOME
(NCA) (NCP) (NCO) (NQC) (NVC) (NUC)
---------------------------------------------------------------------------------------------------------------------------------
Post-October capital losses $1,269,016 $2,345,602 $838,400 $3,307,592 $55,175 $1,923,603
=================================================================================================================================
7. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Each Fund's management fee is separated into two components - a complex-level
component, based on the aggregate amount of all fund assets managed by the
Adviser, and a specific fund-level component, based only on the amount of assets
within each individual Fund, and for California Value (NCA) a gross interest
income component. This pricing structure enables Nuveen fund shareholders to
benefit from growth in the assets within each individual fund as well as from
growth in the amount of complex-wide assets managed by the Adviser.
66 Nuveen Investments
California Value (NCA) pays an annual fund-level fee, payable monthly, of .15%
of the average daily net assets of the Fund, as well as 4.125% of the gross
interest income (excluding interest on bonds underlying a "self-deposited
inverse floater" trust that is attributed to the Fund over and above the net
interest earned on the inverse floater itself) of the Fund.
The annual fund-level fee, payable monthly, for each Fund (excluding California
Value (NCA) and California Value 2 (NCB)) is based upon the average daily net
assets of each Fund as follows:
CALIFORNIA PERFORMANCE PLUS (NCP)
CALIFORNIA OPPORTUNITY (NCO)
CALIFORNIA INVESTMENT QUALITY (NQC)
CALIFORNIA SELECT QUALITY (NVC)
CALIFORNIA QUALITY INCOME (NUC)
AVERAGE DAILY NET ASSETS (1) FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For the next $3 billion .3875
For net assets over $5 billion .3750
================================================================================
The annual fund-level fee, payable monthly, for California Value 2 (NCB) is
based upon the average daily managed net assets of the Fund as follows:
CALIFORNIA VALUE 2 (NCB)
AVERAGE DAILY MANAGED NET ASSETS (1) FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $125 million 0.4000%
For the next $125 million 0.3875
For the next $250 million 0.3750
For the next $500 million 0.3625
For the next $1 billion 0.3500
For Managed Assets over $2 billion 0.3375
================================================================================
The annual complex-level fee, payable monthly, which is additive to the
fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the
aggregate amount of total fund net assets managed as stated in the following
table. As of August 31, 2009, the complex level fee rate was .1936%.
The complex-level fee schedule is as follows:
COMPLEX-LEVEL NET ASSET BREAKPOINT LEVEL (1) EFFECTIVE RATE AT BREAKPOINT LEVEL
--------------------------------------------------------------------------------
$55 billion .2000%
$56 billion .1996
$57 billion .1989
$60 billion .1961
$63 billion .1931
$66 billion .1900
$71 billion .1851
$76 billion .1806
$80 billion .1773
$91 billion .1691
$125 billion .1599
$200 billion .1505
$250 billion .1469
$300 billion .1445
================================================================================
(1) The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate daily managed net assets of all Nuveen
funds, with such daily managed net assets defined separately for each fund
in its management agreement, but excluding assets attributable to
investments in other Nuveen funds. For the complex-level and fund-level
fee components, daily managed net assets include assets managed by the
Adviser that are attributable to financial leverage. For these purposes,
financial leverage includes the funds use of preferred stock and
borrowings and investments in the residual interest certificates (also
called inverse floating rate securities) in tender option bond (TOB)
trusts, including the portion of assets held by the TOB trust that has
been effectively financed by the trust's issuance of floating rate
securities, subject to an agreement by the Adviser to limit the amount of
such assets for determining managed net assets in certain circumstances.
Nuveen Investments 67
| Notes to
| Financial Statements (Unaudited) (continued)
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Directors/Trustees who are affiliated with
the Adviser or to its Officers, all of whom receive remuneration for their
services to the Funds from the Adviser or its affiliates. The Board of
Directors/Trustees has adopted a deferred compensation plan for independent
Directors/Trustees that enables Directors/Trustees to elect to defer receipt of
all or a portion of the annual compensation they are entitled to receive from
certain Nuveen advised funds. Under the plan, deferred amounts are treated as
though equal dollar amounts had been invested in shares of select Nuveen advised
funds.
8. NEW ACCOUNTING PRONOUNCEMENTS
Financial Accounting Standards Board Statement of Financial Accounting Standards
No. 166 (SFAS No. 166)
During June 2009, the Financial Accounting Standards Board issued SFAS No. 166,
"Accounting for Transfers of Financial Assets - an amendment of SFAS No. 140."
The objective of SFAS No. 166 is to improve the relevance, representational
faithfulness, and comparability of the information that a reporting entity
provides in its financial statements about a transfer of financial assets; the
effects of a transfer on its financial position, financial performance, and cash
flows; and a transferor's continuing involvement, if any, in transferred
financial assets.
SFAS No. 166 is effective as of the beginning of each reporting entity's first
annual reporting period that begins after November 15, 2009, for interim periods
within that first annual reporting period and for interim and annual reporting
periods thereafter. Earlier application is prohibited. The recognition and
measurement provisions of SFAS No. 166 must be applied to transfers occurring on
or after the effective date. Additionally, the disclosure provisions of SFAS No.
166 should be applied to transfers that occurred both before and after the
effective date of SFAS No. 166. At this time, management is evaluating the
implications of SFAS No. 166 and the impact it will have on the financial
statement amounts and disclosures, if any.
9. SUBSEQUENT EVENTS
Distributions to Common Shareholders
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on October 1, 2009, to shareholders of record
on September 15, 2009, as follows:
CALIFORNIA
CALIFORNIA CALIFORNIA PERFORMANCE CALIFORNIA
VALUE VALUE 2 PLUS OPPORTUNITY
(NCA) (NCB) (NCP) (NCO)
--------------------------------------------------------------------------------------------------
Dividend per share $.0380 $.0690 $.0690 $.0730
==================================================================================================
CALIFORNIA CALIFORNIA CALIFORNIA
INVESTMENT SELECT QUALITY
QUALITY QUALITY INCOME
(NQC) (NVC) (NUC)
--------------------------------------------------------------------------------------------------
Dividend per share $.0720 $.0750 $.0750
==================================================================================================
Financial Accounting Standards Board Statement of Financial Accounting Standards
No. 165 (SFAS No. 165)
In May 2009, the Financial Accounting Standards Board issued SFAS No. 165
"Subsequent Events." SFAS No. 165 requires an entity to recognize in the
financial statements the effects of all subsequent events that provide
additional evidence about conditions that existed at the date of the balance
sheet. SFAS No. 165 is intended to establish general standards of accounting and
for disclosure of events that occur after the balance sheet date but before
financial statements are issued or are available to be issued. SFAS No. 165
requires the disclosure of the date through which an entity has evaluated
subsequent events and the basis for that date - that is, whether that date
represents the date the financial statements were issued or were available to be
issued. SFAS No. 165 is effective for interim and annual periods ending after
June 15, 2009. The Funds have performed an evaluation of subsequent events
through October 27, 2009, which is the date the financial statements were
issued.
68 Nuveen Investments
| Financial
| Highlights(Unaudited)
Nuveen Investments 69
| Financial
| Highlights(Unaudited)
Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS
---------------------------------------------------------------------------
DISTRIBUTIONS DISTRIBUTIONS
FROM NET FROM
BEGINNING INVESTMENT CAPITAL
COMMON NET INCOME TO GAINS TO
SHARE NET REALIZED/ PREFERRED PREFERRED
NET ASSET INVESTMENT UNREALIZED SHARE- SHARE-
VALUE INCOME GAIN (LOSS) HOLDERS+ HOLDERS+ TOTAL
--------------------------------------------------------------------------------------------------------------------------
CALIFORNIA VALUE (NCA)
--------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(b) $ 8.87 $.23 $ .39 N/A N/A $ .62
2009(c) 9.70 .23 (.70) N/A N/A (.47)
Year Ended 8/31:
2008 9.87 .47 (.18) N/A N/A .29
2007 10.14 .45 (.23) N/A N/A .22
2006 10.33 .46 (.13) N/A N/A .33
2005 10.20 .47 .21 N/A N/A .68
2004 9.93 .48 .34 N/A N/A .82
CALIFORNIA VALUE 2 (NCB)
--------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(d) 14.33 .24 .92 N/A N/A 1.16
==========================================================================================================================
LESS DISTRIBUTIONS
------------------------------------------
NET
INVESTMENT CAPITAL ENDING
INCOME TO GAINS TO COMMON
COMMON COMMON SHARE ENDING
SHARE- SHARE- OFFERING NET ASSET MARKET
HOLDERS HOLDERS TOTAL COSTS VALUE VALUE
--------------------------------------------------------------------------------------------------------------------------
CALIFORNIA VALUE (NCA)
--------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(b) $(.23) $ - $(.23) $ - $ 9.26 $ 9.09
2009(c) (.23) (.13) (.36) - 8.87 8.39
Year Ended 8/31:
2008 (.44) (.02) (.46) - 9.70 9.63
2007 (.46) (.03) (.49) - 9.87 9.65
2006 (.46) (.06) (.52) - 10.14 9.67
2005 (.47) (.08) (.55) - 10.33 9.92
2004 (.48) (.07) (.55) - 10.20 9.27
CALIFORNIA VALUE 2 (NCB)
--------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(d) (.21) - (.21) (.03) 15.25 14.80
==========================================================================================================================
PREFERRED SHARES AT END OF PERIOD
-------------------------------------------------
AGGREGATE LIQUIDATION
AMOUNT AND MARKET ASSET
OUTSTANDING VALUE COVERAGE
(000) PER SHARE PER SHARE
------------------------------------------------------------------------------------------------
CALIFORNIA VALUE (NCA)
------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(b) N/A N/A N/A
2009(c) N/A N/A N/A
Year Ended 8/31:
2008 N/A N/A N/A
2007 N/A N/A N/A
2006 N/A N/A N/A
2005 N/A N/A N/A
2004 N/A N/A N/A
CALIFORNIA VALUE 2 (NCB)
------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(d) N/A N/A N/A
================================================================================================
70 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA
-----------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
TOTAL RETURNS BEFORE CREDIT
---------------------- -----------------------------------------------------------------
BASED ENDING
ON NET
BASED COMMON ASSETS
ON SHARE NET APPLICABLE EXPENSES EXPENSES NET
MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT
VALUE* VALUE* SHARES (000) INTEREST++(a) INTEREST++(a) INCOME++
---------------------------------------------------------------------------------------------------------------------------
CALIFORNIA VALUE (NCA)
---------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(b) 11.18% 7.06% $233,798 .69%*** .68%*** 5.14%***
2009(c) (9.08) (4.73) 223,949 .72*** .70*** 5.30***
Year Ended 8/31:
2008 4.70 2.94 244,985 .69 .65 4.71
2007 4.74 2.11 249,022 .65 .62 4.49
2006 2.85 3.34 255,868 .64 .64 4.51
2005 13.33 6.82 260,782 .63 .63 4.54
2004 8.02 8.40 257,550 .65 .65 4.70
CALIFORNIA VALUE 2 (NCB)
---------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(d) .11 7.97 50,127 .79*** .79*** 4.80***
===========================================================================================================================
RATIOS/SUPPLEMENTAL DATA
---------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
AFTER CREDIT**
-----------------------------------------------------
EXPENSES EXPENSES NET PORTFOLIO
INCLUDING EXCLUDING INVESTMENT TURNOVER
INTEREST++(a) INTEREST++(a) INCOME++ RATE
---------------------------------------------------------------------------------------------------
CALIFORNIA VALUE (NCA)
---------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(b) .69%*** .68%*** 5.14%*** 0%
2009(c) .72*** .70*** 5.30*** 12
Year Ended 8/31:
2008 .69 .64 4.72 22
2007 .64 .61 4.51 8
2006 .63 .63 4.52 20
2005 .63 .63 4.54 4
2004 .65 .65 4.70 28
CALIFORNIA VALUE 2 (NCB)
---------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(d) .79*** .79*** 4.80*** 7
===================================================================================================
N/A Fund is not authorized to issue Preferred shares.
* Total Return Based on Market Value is the combination of changes in the
market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return Based on Common Share Net Asset Value is the combination of
changes in Common share net asset value, reinvested dividend income at net
asset value and reinvested capital gains distributions at net asset value,
if any. The last dividend declared in the period, which is typically paid
on the first business day of the following month, is assumed to be
reinvested at the ending net asset value. The actual reinvest price for
the last dividend declared in the period may often be based on the Fund's
market price (and not its net asset value), and therefore may be different
from the price used in the calculation. Total returns are not annualized.
** After custodian fee credit, where applicable.
*** Annualized.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; Net Investment Income ratios reflect income earned and
expenses incurred on assets attributable to Preferred shares.
(a) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the six months ended August 31, 2009.
(c) For the six months ended February 28, 2009.
(d) For the period April 28, 2009 (commencement of operations) through August
31, 2009.
See accompanying notes to financial statements.
Nuveen Investments 71
| Financial
| Highlights (Unaudited) (continued)
Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS
-----------------------------------------------------------------------------
DISTRIBUTIONS DISTRIBUTIONS
FROM NET FROM
BEGINNING INVESTMENT CAPITAL
COMMON NET INCOME TO GAINS TO
SHARE NET REALIZED/ PREFERRED PREFERRED
NET ASSET INVESTMENT UNREALIZED SHARE- SHARE-
VALUE INCOME GAIN (LOSS) HOLDERS+ HOLDERS+ TOTAL
----------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA PERFORMANCE PLUS (NCP)
----------------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(b) $12.63 $ .53 $ .69 $ (.02) $(.01) $ 1.19
2009(c) 14.19 .48 (1.45) (.12) (.03) (1.12)
Year Ended 8/31:
2008 14.77 .98 (.52) (.25) (.03) .18
2007 15.45 .96 (.60) (.26) (.02) .08
2006 15.79 .96 (.29) (.23) - .44
2005 15.53 .97 .49 (.12) (.01) 1.33
2004 14.76 .99 .80 (.06) - 1.73
CALIFORNIA OPPORTUNITY (NCO)
----------------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(b) 12.92 .53 .56 (.02) - 1.07
2009(c) 14.32 .50 (1.36) (.12) (.02) (1.00)
Year Ended 8/31:
2008 14.90 1.01 (.52) (.26) (.03) .20
2007 15.67 .99 (.68) (.28) - .03
2006 16.14 1.00 (.41) (.22) - .37
2005 15.67 1.02 .50 (.12) - 1.40
2004 14.77 1.03 .88 (.06) - 1.85
==================================================================================================================================
LESS DISTRIBUTIONS
--------------------------------------------
NET
INVESTMENT CAPITAL ENDING
INCOME TO GAINS TO COMMON
COMMON COMMON SHARE ENDING
SHARE- SHARE- OFFERING NET ASSET MARKET
HOLDERS HOLDERS TOTAL COSTS VALUE VALUE
-----------------------------------------------------------------------------------------------------------------------------
CALIFORNIA PERFORMANCE PLUS (NCP)
-----------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(b) $ (.38) $ - $ (.38) $ - $13.44 $12.36
2009(c) (.35) (.09) (.44) - 12.63 10.87
Year Ended 8/31:
2008 (.69) (.07) (.76) - 14.19 12.70
2007 (.71) (.05) (.76) - 14.77 14.07
2006 (.78) - (.78) - 15.45 14.36
2005 (.90) (.17) (1.07) - 15.79 14.52
2004 (.96) - (.96) - 15.53 14.26
CALIFORNIA OPPORTUNITY (NCO)
-----------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(b) (.39) - (.39) - 13.60 12.63
2009(c) (.35) (.05) (.40) - 12.92 10.77
Year Ended 8/31:
2008 (.71) (.07) (.78) - 14.32 12.85
2007 (.80) - (.80) - 14.90 14.36
2006 (.84) - (.84) - 15.67 15.36
2005 (.93) - (.93) - 16.14 15.61
2004 (.95) - (.95) - 15.67 14.45
=============================================================================================================================
PREFERRED SHARES AT END OF PERIOD
-------------------------------------------------------------
AGGREGATE LIQUIDATION
AMOUNT AND MARKET ASSET
OUTSTANDING VALUE COVERAGE
(000) PER SHARE PER SHARE
--------------------------------------------------------------------------------------------------------------------
CALIFORNIA PERFORMANCE PLUS (NCP)
--------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(b) $ 91,175 $25,000 $72,684
2009(c) 91,175 25,000 69,865
Year Ended 8/31:
2008 105,075 25,000 68,765
2007 106,000 25,000 70,157
2006 106,000 25,000 72,255
2005 106,000 25,000 73,276
2004 106,000 25,000 72,478
CALIFORNIA OPPORTUNITY (NCO)
--------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(b) 48,775 25,000 81,774
2009(c) 58,900 25,000 69,771
Year Ended 8/31:
2008 68,000 25,000 68,002
2007 68,000 25,000 69,753
2006 68,000 25,000 71,982
2005 68,000 25,000 73,377
2004 68,000 25,000 71,964
====================================================================================================================
72 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA
------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
TOTAL RETURNS BEFORE CREDIT
----------------------- -----------------------------------------
BASED ENDING
ON NET
BASED COMMON ASSETS
ON SHARE NET APPLICABLE EXPENSES EXPENSES NET
MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT
VALUE* VALUE* SHARES (000) INTEREST++(a) INTEREST++(a) INCOME++
----------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA PERFORMANCE PLUS (NCP)
----------------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(b) 17.57% 9.60% $173,903 1.29%*** 1.25%*** 8.14%***
2009(c) (10.58) (7.75) 163,623 1.40*** 1.34*** 7.72***
Year Ended 8/31:
2008 (4.41) 1.23 183,943 1.33 1.26 6.73
2007 3.21 .49 191,466 1.30 1.22 6.28
2006 4.42 2.97 200,359 1.23 1.23 6.28
2005 9.66 8.89 204,692 1.23 1.23 6.22
2004 9.65 12.00 201,307 1.26 1.26 6.48
CALIFORNIA OPPORTUNITY (NCO)
----------------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(b) 21.30 8.43 110,766 1.30*** 1.26*** 7.94***
2009(c) 12.83 6.85 105,482 1.48*** 1.44*** 8.00***
Year Ended 8/31:
2008 (5.15) 1.35 116,964 1.36 1.28 6.84
2007 (1.62) .07 121,728 1.31 1.26 6.37
2006 4.02 2.47 127,792 1.26 1.26 6.43
2005 15.00 9.19 131,587 1.25 1.25 6.42
2004 10.63 12.86 127,743 1.28 1.28 6.72
==================================================================================================================================
RATIOS/SUPPLEMENTAL DATA
------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
AFTER CREDIT**
---------------------------------------------------------
EXPENSES EXPENSES NET PORTFOLIO
INCLUDING EXCLUDING INVESTMENT TURNOVER
INTEREST++(a) INTEREST++(a) INCOME++ RATE
--------------------------------------------------------------------------------------------------------------------------
CALIFORNIA PERFORMANCE PLUS (NCP)
--------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(b) 1.29%*** 1.25%*** 8.14%*** 0%
2009(c) 1.38*** 1.32*** 7.74*** 6
Year Ended 8/31:
2008 1.32 1.25 6.74 11
2007 1.28 1.20 6.30 18
2006 1.22 1.22 6.29 11
2005 1.22 1.22 6.23 5
2004 1.25 1.25 6.49 16
CALIFORNIA OPPORTUNITY (NCO)
--------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(b) 1.30*** 1.26*** 7.94*** 2
2009(c) 1.46*** 1.42*** 8.02*** 4
Year Ended 8/31:
2008 1.35 1.27 6.85 8
2007 1.29 1.24 6.39 10
2006 1.24 1.24 6.45 18
2005 1.25 1.25 6.43 7
2004 1.28 1.28 6.73 13
==========================================================================================================================
* Total Return Based on Market Value is the combination of changes in the
market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return Based on Common Share Net Asset Value is the combination of
changes in Common share net asset value, reinvested dividend income at net
asset value and reinvested capital gains distributions at net asset value,
if any. The last dividend declared in the period, which is typically paid
on the first business day of the following month, is assumed to be
reinvested at the ending net asset value. The actual reinvest price for
the last dividend declared in the period may often be based on the Fund's
market price (and not its net asset value), and therefore may be different
from the price used in the calculation. Total returns are not annualized.
** After custodian fee credit, where applicable.
*** Annualized.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; Net Investment Income ratios reflect income earned and
expenses incurred on assets attributable to Preferred shares.
(a) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the six months ended August 31, 2009.
(c) For the six months ended February 28, 2009.
See accompanying notes to financial statements.
Nuveen Investments 73
| Financial
| Highlights (Unaudited) (continued)
Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS
----------------------------------------------------------------------------
DISTRIBUTIONS DISTRIBUTIONS
FROM NET FROM
BEGINNING INVESTMENT CAPITAL
COMMON NET INCOME TO GAINS TO
SHARE NET REALIZED/ PREFERRED PREFERRED
NET ASSET INVESTMENT UNREALIZED SHARE- SHARE-
VALUE INCOME GAIN (LOSS) HOLDERS+ HOLDERS+ TOTAL
----------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA INVESTMENT QUALITY (NQC)
----------------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(b) $12.65 $ .54 $ .70 $(.02) $(.02) $ 1.20
2009(c) 14.34 .49 (1.50) (.11) (.02) (1.14)
Year Ended 8/31:
2008 14.81 1.00 (.47) (.27) -*** .26
2007 15.48 .97 (.59) (.26) (.02) .10
2006 15.86 .96 (.24) (.23) (.01) .48
2005 15.65 .98 .40 (.13) (.01) 1.24
2004 15.09 1.00 .70 (.06) (.01) 1.63
CALIFORNIA SELECT QUALITY (NVC)
----------------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(b) 12.72 .55 .84 (.02) (.02) 1.35
2009(c) 14.31 .50 (1.41) (.11) (.03) (1.05)
Year Ended 8/31:
2008 14.75 1.01 (.42) (.26) (.02) .31
2007 15.49 .98 (.64) (.27) (.01) .06
2006 15.98 .99 (.27) (.22) (.02) .48
2005 15.63 1.02 .53 (.13) (.01) 1.41
2004 14.93 1.04 .77 (.06) (.01) 1.74
==================================================================================================================================
LESS DISTRIBUTIONS
---------------------------------------
NET
INVESTMENT CAPITAL ENDING
INCOME TO GAINS TO COMMON
COMMON COMMON SHARE ENDING
SHARE- SHARE- OFFERING NET ASSET MARKET
HOLDERS HOLDERS TOTAL COSTS VALUE VALUE
-----------------------------------------------------------------------------------------------------------------------
CALIFORNIA INVESTMENT QUALITY (NQC)
-----------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(b) $ (.40) $ - $ (.40) $ - $13.45 $12.47
2009(c) (.36) (.19) (.55) - 12.65 11.09
Year Ended 8/31:
2008 (.72) (.01) (.73) - 14.34 13.08
2007 (.70) (.07) (.77) - 14.81 13.74
2006 (.80) (.06) (.86) - 15.48 14.63
2005 (.92) (.11) (1.03) - 15.86 15.10
2004 (.97) (.10) (1.07) - 15.65 14.80
CALIFORNIA SELECT QUALITY (NVC)
-----------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(b) (.42) - (.42) - 13.65 13.04
2009(c) (.36) (.18) (.54) - 12.72 10.78
Year Ended 8/31:
2008 (.70) (.05) (.75) - 14.31 12.88
2007 (.75) (.05) (.80) - 14.75 13.97
2006 (.85) (.12) (.97) - 15.49 15.25
2005 (.96) (.10) (1.06) - 15.98 15.69
2004 (.97) (.07) (1.04) - 15.63 14.81
=======================================================================================================================
PREFERRED SHARES AT END OF PERIOD
------------------------------------------------
AGGREGATE LIQUIDATION
AMOUNT AND MARKET ASSET
OUTSTANDING VALUE COVERAGE
(000) PER SHARE PER SHARE
--------------------------------------------------------------------------------------------------------
CALIFORNIA INVESTMENT QUALITY (NQC)
--------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(b) $ 94,925 $25,000 $73,112
2009(c) 94,925 25,000 70,256
Year Ended 8/31:
2008 108,650 25,000 69,816
2007 112,000 25,000 69,881
2006 112,000 25,000 71,929
2005 112,000 25,000 73,091
2004 112,000 25,000 72,435
CALIFORNIA SELECT QUALITY (NVC)
--------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(b) 158,025 25,000 74,865
2009(c) 164,150 25,000 69,779
Year Ended 8/31:
2008 176,375 25,000 71,905
2007 192,000 25,000 69,414
2006 192,000 25,000 71,632
2005 192,000 25,000 73,058
2004 192,000 25,000 71,997
========================================================================================================
74 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA
--------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
TOTAL RETURNS BEFORE CREDIT
----------------------- --------------------------------------------
BASED ENDING
ON NET
BASED COMMON ASSETS
ON SHARE NET APPLICABLE EXPENSES EXPENSES NET
MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT
VALUE* VALUE* SHARES (000) INTEREST++(a) INTEREST++(a) INCOME++
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA INVESTMENT QUALITY (NQC)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(b) 16.37% 9.64% $182,682 1.32%**** 1.25%**** 8.27%****
2009(c) (10.59) (7.70) 171,836 1.47**** 1.30**** 7.87****
Year Ended 8/31:
2008 .53 1.78 194,772 1.39 1.24 6.77
2007 (1.03) .57 201,067 1.34 1.22 6.32
2006 2.73 3.21 210,242 1.22 1.22 6.28
2005 9.33 8.18 215,446 1.21 1.21 6.24
2004 8.94 11.11 212,509 1.22 1.22 6.48
CALIFORNIA SELECT QUALITY (NVC)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(b) 25.23 10.76 315,197 1.28**** 1.22**** 8.45****
2009(c) (11.80) 7.09 294,019 1.39**** 1.28**** 8.08****
Year Ended 8/31:
2008 (2.52) 2.07 330,915 1.32 1.22 6.90
2007 (3.40) .29 341,102 1.28 1.19 6.36
2006 3.63 3.21 358,131 1.20 1.20 6.38
2005 13.70 9.33 369,087 1.19 1.19 6.44
2004 12.38 11.97 360,938 1.21 1.21 6.78
====================================================================================================================================
RATIOS/SUPPLEMENTAL DATA
-------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
AFTER CREDIT**
---------------------------------------------------
EXPENSES EXPENSES NET PORTFOLIO
INCLUDING EXCLUDING INVESTMENT TURNOVER
INTEREST++(a) INTEREST++(a) INCOME++ RATE
-------------------------------------------------------------------------------------------------------------------
CALIFORNIA INVESTMENT QUALITY (NQC)
-------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(b) 1.32%**** 1.25%**** 8.27%**** 0%
2009(c) 1.46**** 1.28**** 7.88**** 6
Year Ended 8/31:
2008 1.38 1.24 6.78 15
2007 1.32 1.20 6.33 12
2006 1.21 1.21 6.29 11
2005 1.20 1.20 6.25 5
2004 1.22 1.22 6.49 20
CALIFORNIA SELECT QUALITY (NVC)
-------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(b) 1.28**** 1.22**** 8.45**** 1
2009(c) 1.37**** 1.25**** 8.10**** 0
Year Ended 8/31:
2008 1.31 1.21 6.91 13
2007 1.26 1.17 6.37 16
2006 1.19 1.19 6.39 16
2005 1.18 1.18 6.44 8
2004 1.20 1.20 6.78 14
===================================================================================================================
* Total Return Based on Market Value is the combination of changes in the
market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return Based on Common Share Net Asset Value is the combination of
changes in Common share net asset value, reinvested dividend income at net
asset value and reinvested capital gains distributions at net asset value,
if any. The last dividend declared in the period, which is typically paid
on the first business day of the following month, is assumed to be
reinvested at the ending net asset value. The actual reinvest price for
the last dividend declared in the period may often be based on the Fund's
market price (and not its net asset value), and therefore may be different
from the price used in the calculation. Total returns are not annualized.
** After custodian fee credit, where applicable.
*** Rounds to less than $.01 per share.
**** Annualized.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; Net Investment Income ratios reflect income earned and
expenses incurred on assets attributable to Preferred shares.
(a) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the six months ended August 31, 2009.
(c) For the six months ended February 28, 2009.
See accompanying notes to financial statements.
Nuveen Investments 75
| Financial
| Highlights (Unaudited) (continued)
Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS
--------------------------------------------------------------------------------
DISTRIBUTIONS DISTRIBUTIONS
FROM NET FROM
BEGINNING INVESTMENT CAPITAL
COMMON NET INCOME TO GAINS TO
SHARE NET REALIZED/ PREFERRED PREFERRED
NET ASSET INVESTMENT UNREALIZED SHARE- SHARE-
VALUE INCOME GAIN (LOSS) HOLDERS+ HOLDERS+ TOTAL
-----------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA QUALITY INCOME (NUC)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(b) $13.29 $ .57 $ .59 $ (.02) $(.02) $ 1.12
2009(c) 14.73 .52 (1.28) (.12) (.03) (.91)
Year Ended 8/31:
2008 14.93 1.04 (.23) (.29) - .52
2007 15.60 1.01 (.59) (.28) (.01) .13
2006 16.03 1.02 (.35) (.23) -*** .44
2005 15.49 1.04 .69 (.13) (.01) 1.59
2004 14.85 1.05 .73 (.07) -*** 1.71
===================================================================================================================================
LESS DISTRIBUTIONS
-----------------------------------------
NET
INVESTMENT CAPITAL ENDING
INCOME TO GAINS TO COMMON
COMMON COMMON SHARE ENDING
SHARE- SHARE- OFFERING NET ASSET MARKET
HOLDERS HOLDERS TOTAL COSTS VALUE VALUE
---------------------------------------------------------------------------------------------------------------------------
CALIFORNIA QUALITY INCOME (NUC)
---------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(b) $ (.43) $ - $ (.43) $ - $13.98 $13.55
2009(c) (.37) (.16) (.53) - 13.29 11.21
Year Ended 8/31:
2008 (.72) - (.72) - 14.73 13.08
2007 (.77) (.03) (.80) - 14.93 14.08
2006 (.84) (.03) (.87) - 15.60 15.28
2005 (.97) (.08) (1.05) - 16.03 15.73
2004 (1.02) (.05) (1.07) - 15.49 15.00
===========================================================================================================================
PREFERRED SHARES AT END OF PERIOD
------------------------------------------------
AGGREGATE LIQUIDATION
AMOUNT AND MARKET ASSET
OUTSTANDING VALUE COVERAGE
(000) PER SHARE PER SHARE
----------------------------------------------------------------------------------------------
CALIFORNIA QUALITY INCOME (NUC)
----------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(b) $157,225 $25,000 $73,871
2009(c) 165,025 25,000 69,292
Year Ended 8/31:
2008 176,900 25,000 70,839
2007 185,000 25,000 69,427
2006 185,000 25,000 71,364
2005 185,000 25,000 72,669
2004 185,000 25,000 71,064
==============================================================================================
76 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA
--------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
TOTAL RETURNS BEFORE CREDIT
--------------------- ---------------------------------------------
BASED ENDING
ON NET
BASED COMMON ASSETS
ON SHARE NET APPLICABLE EXPENSES EXPENSES NET
MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT
VALUE* VALUE* SHARES (000) INTEREST++(a) INTEREST++(a) INCOME++
---------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA QUALITY INCOME (NUC)
---------------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(b) 25.09% 8.52% $307,351 1.27%**** 1.22%**** 8.34%****
2009(c) (9.94) (5.94) 292,373 1.37**** 1.27**** 8.00****
Year Ended 8/31:
2008 (2.12) 3.51 324,354 1.33 1.23 6.93
2007 (2.92) .74 328,756 1.28 1.20 6.51
2006 2.90 2.96 343,096 1.21 1.21 6.54
2005 12.30 10.57 352,752 1.20 1.20 6.62
2004 9.67 11.76 340,873 1.22 1.22 6.89
=================================================================================================================================
RATIOS/SUPPLEMENTAL DATA
----------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
AFTER CREDIT**
------------------------------------------------------
EXPENSES EXPENSES NET PORTFOLIO
INCLUDING EXCLUDING INVESTMENT TURNOVER
INTEREST++(a) INTEREST++(a) INCOME++ RATE
------------------------------------------------------------------------------------------------------------
CALIFORNIA QUALITY INCOME (NUC)
------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(b) 1.27%**** 1.22%**** 8.34%**** 4%
2009(c) 1.35**** 1.25**** 8.02**** 6
Year Ended 8/31:
2008 1.32 1.22 6.94 10
2007 1.27 1.18 6.53 16
2006 1.20 1.20 6.55 12
2005 1.20 1.20 6.63 6
2004 1.21 1.21 6.89 16
============================================================================================================
* Total Return Based on Market Value is the combination of changes in the
market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return Based on Common Share Net Asset Value is the combination of
changes in Common share net asset value, reinvested dividend income at net
asset value and reinvested capital gains distributions at net asset value,
if any. The last dividend declared in the period, which is typically paid
on the first business day of the following month, is assumed to be
reinvested at the ending net asset value. The actual reinvest price for
the last dividend declared in the period may often be based on the Fund's
market price (and not its net asset value), and therefore may be different
from the price used in the calculation. Total returns are not annualized.
** After custodian fee credit, where applicable.
*** Rounds to less than $.01 per share.
**** Annualized.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; Net Investment Income ratios reflect income earned and
expenses incurred on assets attributable to Preferred shares.
(a) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the six months ended August 31, 2009.
(c) For the six months ended February 28, 2009. See accompanying notes to
financial statements.
Nuveen Investments 77
Annual Investment Management Agreement Approval Process
The Investment Company Act of 1940, as amended (the "1940 Act"), provides, in
substance, that each investment advisory agreement between a fund and its
investment adviser will continue in effect from year to year only if its
continuance is approved at least annually by the fund's board members, including
by a vote of a majority of the board members who are not parties to the advisory
agreement or "interested persons" of any parties (the "Independent Board
Members"), cast in person at a meeting called for the purpose of considering
such approval. In connection with such approvals, the fund's board members must
request and evaluate, and the investment adviser is required to furnish, such
information as may be reasonably necessary to evaluate the terms of the advisory
agreement. Accordingly, at a meeting held on May 27-29, 2009 (the "May
Meeting"), the Boards of Trustees or Directors (as the case may be) (each a
"Board" and each Trustee or Director, a "Board Member") of the Funds (other than
the Nuveen California Municipal Value Fund 2 (the "Municipal Value Fund 2"),
which is new), including a majority of the Independent Board Members, considered
and approved the continuation of the advisory agreements (each an "Advisory
Agreement") between each Fund (other than the Municipal Value Fund 2) and Nuveen
Asset Management ("NAM") for an additional one-year period. In preparation for
their considerations at the May Meeting, such Boards also held a separate
meeting on April 21-22, 2009 (the "April Meeting"). Accordingly, the factors
considered and determinations made regarding the renewals by the Independent
Board Members include those made at the April Meeting. The initial Advisory
Agreement between NAM and the Municipal Value Fund 2 was approved separately at
meetings of the Board of such Fund held on February 27, 2009 and March 16, 2009.
The discussion of the approvals for the Funds other than the Municipal Value
Fund 2 is set forth below in Section I, followed by the discussion in Section II
of the approval for the Municipal Value Fund 2.
I.
NUVEEN CALIFORNIA MUNICIPAL VALUE FUND, INC.
NUVEEN CALIFORNIA PERFORMANCE PLUS MUNICIPAL FUND, INC.
NUVEEN CALIFORNIA MUNICIPAL MARKET OPPORTUNITY FUND, INC.
NUVEEN CALIFORNIA INVESTMENT QUALITY MUNICIPAL FUND, INC.
NUVEEN CALIFORNIA SELECT QUALITY MUNICIPAL FUND, INC.
NUVEEN CALIFORNIA QUALITY INCOME MUNICIPAL FUND, INC.
78 Nuveen Investments
With respect to the Funds listed above (for purposes of this Section I, the
"Funds"), in evaluating the applicable Advisory Agreements (for purposes of this
Section I, the "Advisory Agreements"), the Independent Board Members reviewed a
broad range of information relating to the Funds and NAM, including absolute
performance, fee and expense information for the Funds as well as comparative
performance, fee and expense information for a comparable peer group of funds,
the performance information of recognized and/or customized benchmarks (as
applicable) of the Funds, the profitability of Nuveen for its advisory
activities (which includes its wholly owned subsidiaries other than Winslow
Capital Management, Inc. ("Winslow Capital"), which was recently acquired in
December 2008), and other information regarding the organization, personnel, and
services provided by NAM. The Independent Board Members also met quarterly as
well as at other times as the need arose during the year and took into account
the information provided at such meetings and the knowledge gained therefrom.
Prior to approving the renewal of the Advisory Agreements, the Independent Board
Members reviewed the foregoing information with their independent legal counsel
and with management, reviewed materials from independent legal counsel
describing applicable law and their duties in reviewing advisory contracts, and
met with independent legal counsel in private sessions without management
present. The Independent Board Members considered the legal advice provided by
independent legal counsel and relied upon their knowledge of NAM, its services
and the Funds resulting from their meetings and other interactions throughout
the year and their own business judgment in determining the factors to be
considered in evaluating the Advisory Agreements. Each Board Member may have
accorded different weight to the various factors in reaching his or her
conclusions with respect to a Fund's Advisory Agreement. The Independent Board
Members did not identify any single factor as all-important or controlling. The
Independent Board Members' considerations were instead based on a comprehensive
consideration of all the information presented. The principal factors considered
by the Board and its conclusions are described below.
A. NATURE, EXTENT AND QUALITY OF SERVICES
In considering renewal of the Advisory Agreements, the Independent Board Members
considered the nature, extent and quality of NAM's services, including advisory
services and administrative services. The Independent Board Members reviewed
materials outlining, among other things, NAM's organization and business; the
types of services that NAM or its affiliates provide and are expected to provide
to the Funds; the performance record of the applicable Fund (as described in
further detail below); and any initiatives Nuveen had taken for the applicable
fund product line.
Nuveen Investments 79
Annual Investment Management Agreement Approval Process (continued)
In reviewing the services provided and the initiatives undertaken during the
past year, the Independent Board Members recognized the severe market turmoil
experienced in the capital markets during recent periods, including sustained
periods of high volatility, credit disruption and government intervention. The
Independent Board Members considered NAM's efforts, expertise and other actions
taken to address matters as they arose that impacted the Funds. The Independent
Board Members recognized the role of the Investment Services group which, among
other things, monitors the various positions throughout the Nuveen fund complex
to identify and address any systematic risks. In addition, the Capital Markets
Committee of NAM provides a multi-departmental venue for developing new policies
to mitigate any risks. The Independent Board Members further recognized NAM's
continuous review of the Nuveen funds' investment strategies and mandates in
seeking to continue to refine and improve the investment process for the funds,
particularly in light of market conditions. With respect to closed-end funds
that issued auction rate preferred shares ("ARPs") or that otherwise utilize
leverage, the Independent Board Members noted, in particular, NAM's efforts in
refi-nancing the preferred shares of such funds frozen by the collapse of the
auction rate market and managing leverage during a period of rapid market
declines, particularly for the non-equity funds. Such efforts included
negotiating and maintaining the availability of bank loan facilities and other
sources of credit used for investment purposes or to satisfy liquidity needs,
liquidating portfolio securities during difficult times to meet leverage ratios,
and seeking alternative forms of debt and other leverage that may over time
reduce financing costs associated with ARPs and enable the funds that have
issued ARPs to restore liquidity to ARPs holders. The Independent Board Members
also noted Nuveen's continued commitment and efforts to keep investors and
financial advisers informed as to its progress with the ARPs through, among
other things, conference calls, emails, press releases, information posted on
its website, and telephone calls and in-person meetings with financial advisers.
In addition to the foregoing, the Independent Board Members also noted the
additional services that NAM or its affiliates provide to closed-end funds,
including, in particular, Nuveen's continued commitment to supporting the
secondary market for the common shares of its closed-end funds through a variety
of programs designed to raise investor and analyst awareness and understanding
of closed-end funds. These efforts include maintaining an investor relations
program to provide timely information and education to financial advisers and
investors; providing advertising and marketing for the closed-end funds;
maintaining websites; and providing educational seminars.
As part of their review, the Independent Board Members also evaluated the
background, experience and track record of NAM's investment personnel. In this
regard, the Independent Board Members considered any changes in the personnel,
and the impact on the level of services provided to the Funds, if any. The
Independent Board Members also reviewed information regarding portfolio manager
compensation arrangements to evaluate NAM's ability to attract and retain high
quality investment personnel, preserve stability, and reward performance but not
provide an incentive for taking undue risks.
80 Nuveen Investments
In addition to advisory services, the Independent Board Members considered the
quality of administrative services provided by NAM and its affiliates including
product management, fund administration, oversight of service providers,
shareholder services, administration of Board relations, regulatory and
portfolio compliance and legal support. Given the importance of compliance, the
Independent Board Members considered NAM's compliance program, including the
report of the chief compliance officer regarding the Funds' compliance policies
and procedures.
Based on their review, the Independent Board Members found that, overall, the
nature, extent and quality of services provided (and expected to be provided) to
the respective Funds under the Advisory Agreements were satisfactory.
B. THE INVESTMENT PERFORMANCE OF THE FUNDS AND NAM
The Board considered the investment performance of each Fund, including the
Fund's historic performance as well as its performance compared to funds with
similar investment objectives (the "Performance Peer Group") based on data
provided by an independent provider of mutual fund data as well as recognized
and/or customized benchmarks (as applicable). The Independent Board Members
reviewed performance information including, among other things, total return
information compared with the Fund's Performance Peer Group and recognized
and/or customized benchmarks (as applicable) for the quarter-, one-, three- and
five-year periods (as applicable) ending December 31, 2008 and for the same
periods (as applicable) ending March 31, 2009. The Independent Board Members
also reviewed performance information of the Nuveen municipal funds managed by
NAM in the aggregate ranked by peer group and the performance of such funds, in
the aggregate, relative to their benchmark. This information supplemented the
Fund performance information provided to the Board at each of its quarterly
meetings.
In comparing a fund's performance with that of its Performance Peer Group, the
Independent Board Members took into account that the closest Performance Peer
Group in certain instances may not adequately reflect the respective fund's
investment objectives and strategies thereby hindering a meaningful comparison
of the fund's performance with that of the Performance Peer Group. The
Independent Board Members further considered the performance of the Funds in the
context of the volatile market conditions during the past year, and their impact
on various asset classes and the portfolio management of the Funds.
Based on their review and factoring in the severity of market turmoil in 2008,
the Independent Board Members determined that each Fund's investment performance
over time had been satisfactory.
Nuveen Investments 81
Annual Investment Management Agreement Approval Process (continued)
C. FEES, EXPENSES AND PROFITABILITY
1. Fees and Expenses
The Board evaluated the management fees and expenses of each Fund
reviewing, among other things, such Fund's gross management fees, net
management fees and total expense ratios (before and after expense
reimbursements and/or waivers) in absolute terms as well as compared to
the fee and expenses of a comparable universe of unaffiliated funds based
on data provided by an independent fund data provider (the "Peer
Universe") and in certain cases, to a more focused subset of funds in the
Peer Universe (the "Peer Group").
The Independent Board Members further reviewed data regarding the
construction of the applicable Peer Universe and Peer Group. In reviewing
the comparisons of fee and expense information, the Independent Board
Members took into account that in certain instances various factors such
as the asset level of a fund relative to peers, the size and particular
composition of the Peer Universe or Peer Group, the investment objectives
of the peers, expense anomalies, changes in the funds comprising the Peer
Universe or Peer Group from year to year, levels of reimbursement and the
timing of information used may impact the comparative data, thereby
limiting the ability to make a meaningful comparison. In addition, the
Independent Board Members also considered, among other things, the
differences in the use and type of leverage compared to the peers. The
Independent Board Members also considered the differences in the states
reflected in the respective Peer Group. In reviewing the fee schedule for
a Fund, the Independent Board Members also considered the fund-level and
complex-wide breakpoint schedules (described in further detail below) and
any fee waivers and reimbursements provided by Nuveen (applicable, in
particular, for certain closed-end funds launched since 1999).
Based on their review of the fee and expense information provided, the
Independent Board Members determined that each Fund's management fees and
net total expense ratio were reasonable in light of the nature, extent and
quality of services provided to the Fund.
2. Comparisons with the Fees of Other Clients
The Independent Board Members further reviewed information regarding the
nature of services and fee rates offered by NAM to other clients. Such
other clients include NAM's municipal separately managed accounts. In
evaluating the comparisons of fees, the Independent Board Members noted
that the fee rates charged to the Funds and other clients vary, among
other things, because of the different services involved and the
additional regulatory and compliance requirements associated with
registered investment companies, such as the Funds. Accordingly, the
Independent Board Members considered the differences in the product types,
including, but not limited to, the services provided, the structure and
operations, product distribution and costs thereof, portfolio investment
policies, investor profiles, account sizes and regulatory requirements.
The Independent Board Members noted, in particular, that the range of
services provided to the Funds (as discussed above) is much more extensive
than that provided to separately managed accounts. Given the inherent
differences in the products, particularly the extensive services provided
to the Funds, the Independent Board Members believe such facts justify the
different levels of fees.
82 Nuveen Investments
3. Profitability of Nuveen
In conjunction with its review of fees, the Independent Board Members also
considered the profitability of Nuveen for its advisory activities (which
incorporated Nuveen's wholly-owned affiliated sub-advisers other than
Winslow Capital) and its financial condition. The Independent Board
Members reviewed the revenues and expenses of Nuveen's advisory activities
for the last two years, the allocation methodology used in preparing the
profitability data and an analysis of the key drivers behind the changes
in revenues and expenses that impacted profitability in 2008. In addition,
the Independent Board Members reviewed information regarding the financial
results of Nuveen for 2008 based on its Form 8-K filed on March 31, 2009.
The Independent Board Members noted this information supplemented the
profitability information requested and received during the year to help
keep them apprised of developments affecting profitability (such as
changes in fee waivers and expense reimbursement commitments). In this
regard, the Independent Board Members noted that they had also appointed
an Independent Board Member as a point person to review and keep them
apprised of changes to the profitability analysis and/or methodologies
during the year. The Independent Board Members also considered Nuveen's
revenues for advisory activities, expenses, and profit margin compared to
that of various unaffiliated management firms with similar amounts of
assets under management and relatively comparable asset composition
prepared by Nuveen.
In reviewing profitability, the Independent Board Members recognized the
subjective nature of determining profitability which may be affected by
numerous factors including the allocation of expenses. Further, the
Independent Board Members recognized the difficulties in making
comparisons as the profitability of other advisers generally is not
publicly available and the profitability information that is available for
certain advisers or management firms may not be representative of the
industry and may be affected by, among other things, the adviser's
particular business mix, capital costs, types of funds managed and expense
allocations. Notwithstanding the foregoing, the Independent Board Members
reviewed Nuveen's methodology and assumptions for allocating expenses
across product lines to determine profitability. In reviewing
profitability, the Independent Board Members recognized Nuveen's
investment in its fund business.
Based on their review, the Independent Board Members concluded that
Nuveen's level of profitability for its advisory activities was reasonable
in light of the services provided.
In evaluating the reasonableness of the compensation, the Independent
Board Members also considered other amounts paid to NAM by the Funds as
well as any indirect benefits (such as soft dollar arrangements, if any)
NAM and its affiliates receive, or are expected to receive, that are
directly attributable to the management of the Funds, if any. See Section
E below for additional information on indirect benefits NAM may receive as
a result of its relationship with the Funds. Based on their review of the
overall fee arrangements of each Fund, the Independent Board Members
determined that the advisory fees and expenses of the respective Fund were
reasonable.
Nuveen Investments 83
Annual Investment Management Agreement Approval Process (continued)
D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF
SCALE
With respect to economies of scale, the Independent Board Members have
recognized the potential benefits resulting from the costs of a fund being
spread over a larger asset base, although economies of scale are difficult
to measure and predict with precision, particularly on a fund-by-fund
basis. One method to help ensure the shareholders share in these benefits
is to include breakpoints in the advisory fee schedule. Generally,
management fees for funds in the Nuveen complex are comprised of a
fund-level component and a complex-level component, subject to certain
exceptions. Accordingly, the Independent Board Members reviewed and
considered the applicable fund-level breakpoints in the advisory fee
schedules that reduce advisory fees as asset levels increase. In this
regard, the Independent Board Members noted that although closed-end funds
may from time-to-time make additional share offerings, the growth of their
assets will occur primarily through the appreciation of such funds'
investment portfolio. While economies of scale result when costs can be
spread over a larger asset base, the Independent Board Members also
recognized that the asset levels generally declined in 2008 due to, among
other things, the market downturn. Accordingly, for funds with a reduction
in assets under management, advisory fee levels may have increased as
breakpoints in the fee schedule were no longer surpassed.
In addition to fund-level advisory fee breakpoints, the Board also
considered the Funds' complex-wide fee arrangement. Pursuant to the
complex-wide fee arrangement, the fees of the funds in the Nuveen complex
generally are reduced as the assets in the fund complex reach certain
levels. The complex-wide fee arrangement seeks to provide the benefits of
economies of scale to fund shareholders when total fund complex assets
increase, even if assets of a particular fund are unchanged or have
decreased. The approach reflects the notion that some of Nuveen's costs
are attributable to services provided to all its funds in the complex and
therefore all funds benefit if these costs are spread over a larger asset
base. Generally, the complex-wide pricing reduces Nuveen's revenue because
total complex fund assets have consistently grown in prior years. As
noted, however, total fund assets declined in 2008 resulting in a smaller
downward adjustment of revenues due to complex-wide pricing compared to
the prior year.
Based on their review, the Independent Board Members concluded that the
breakpoint schedules and complex-wide fee arrangement were acceptable and
reflect economies of scale to be shared with shareholders when assets
under management increase.
E. INDIRECT BENEFITS
In evaluating fees, the Independent Board Members received and considered
information regarding potential "fall out" or ancillary benefits NAM or
its affiliates may receive as a result of its relationship with each Fund.
In this regard, the Independent Board Members considered revenues received
by affiliates of NAM for serving as agent at Nuveen's trading desk.
84 Nuveen Investments
In addition to the above, the Independent Board Members considered whether
NAM received any benefits from soft dollar arrangements whereby a portion
of the commissions paid by a Fund for brokerage may be used to acquire
research that may be useful to NAM in managing the assets of the Funds and
other clients. The Independent Board Members noted that NAM does not
currently have any soft dollar arrangements; however, to the extent
certain bona fide agency transactions that occur on markets that
traditionally trade on a principal basis and riskless principal
transactions are considered as generating "commissions," NAM intends to
comply with the applicable safe harbor provisions.
Based on their review, the Independent Board Members concluded that any
indirect benefits received by NAM as a result of its relationship with the
Funds were reasonable and within acceptable parameters.
F. OTHER CONSIDERATIONS
The Independent Board Members did not identify any single factor discussed
previously as all-important or controlling. The Board Members, including
the Independent Board Members, unanimously concluded that the terms of the
Advisory Agreements are fair and reasonable, that NAM's fees are
reasonable in light of the services provided to each Fund and that the
Advisory Agreements be renewed.
II
NUVEEN CALIFORNIA MUNICIPAL VALUE FUND 2
The Board is responsible for approving the advisory arrangement of the
Municipal Value Fund 2 (for purposes of this Section II, the "Fund") and,
at meetings held on February 27, 2009 and March 16, 2009 (collectively,
for purposes of this Section II, the "Meeting"), the Board Members,
including the Independent Board Members, considered and approved the
investment advisory agreement (for purposes of this Section II, the
"Advisory Agreement") between the Fund and NAM.
To assist the Board in its evaluation of the Advisory Agreement at the
Meeting, the Independent Board Members had received, in adequate time in
advance of the Meeting or at prior meetings, materials which outlined,
among other things:
o the nature, extent and quality of services expected to be provided
by NAM;
o the organization of NAM, including the responsibilities of various
departments and key personnel;
o the expertise and background of NAM with respect to the Fund's
investment strategy;
o the performance records of NAM and of certain similar Nuveen funds
(as described below);
o the profitability of Nuveen Investments, Inc. ("Nuveen") (which
incorporated Nuveen's wholly-owned affiliated sub-advisers);
o the proposed management fees of NAM, including comparisons of such
fees with the management fees of comparable, unaffiliated funds, as
well as comparable, affiliated funds;
Nuveen Investments 85
Annual Investment Management Agreement Approval Process (continued)
o the advisory fees NAM assesses to other types of investment products
or clients;
o the expected expenses of the Fund, including comparisons of the
Fund's expected expense ratio with the expense ratios of comparable,
unaffiliated funds, as well as comparable, affiliated funds; and
o the soft dollar practices of NAM, if any.
At the Meeting, NAM made a presentation to and responded to questions from
the Board. During the Meeting, the Independent Board Members also met
privately with their legal counsel to review the Board's duties under the
1940 Act, the general principles of state law in reviewing and approving
advisory contracts, the standards used by courts in determining whether
investment company boards of directors have fulfilled their duties,
factors to be considered in voting on advisory contracts and an adviser's
fiduciary duty with respect to advisory agreements and compensation. It is
with this background that the Independent Board Members considered the
advisory agreement with NAM for the Fund. As outlined in more detail
below, the Independent Board Members considered all factors they believed
relevant with respect to the Fund, including the following: (a) the
nature, extent and quality of the services to be provided by NAM; (b)
investment performance, as described below; (c) the profitability of
Nuveen and its affiliates; (d) the extent to which economies of scale
would be realized; and (e) whether fee levels reflect these economies of
scale for the benefit of Fund investors.
A. NATURE, EXTENT AND QUALITY OF SERVICES
The Independent Board Members considered the nature, extent and quality of
NAM's services, including advisory services and administrative services.
As NAM already serves as adviser to other Nuveen funds overseen by the
Board Members, the Board has a good understanding of NAM's organization,
operations and personnel. As the Independent Board Members meet regularly
throughout the year to oversee the Nuveen funds, including funds currently
advised by NAM, the Independent Board Members have relied upon their
knowledge from their meetings and any other interactions throughout the
year of NAM and its services in evaluating the Advisory Agreement.
At the Meeting and at prior meetings, the Independent Board Members
reviewed materials outlining, among other things, Nuveen's organization
and business; the types of services that NAM or its affiliates provide to
the Nuveen funds and are expected to provide to the Fund; and NAM's
experience with applicable investment strategies. The Independent Board
Members further evaluated the professional experience, qualifications and
credentials of NAM's investment personnel.
In addition to advisory services, the Independent Board Members considered
the quality of any administrative or non-advisory services to be provided.
In this regard, NAM is expected to provide the Fund with such
administrative and other services (exclusive of, and in addition to, any
such services provided by others for the Fund) and officers and other
personnel as are necessary for the operations of the Fund. In addition to
investment management services, NAM and its affiliates will provide the
Fund with a wide range of services, including, among other things, product
management, fund administration, oversight of service providers,
shareholder services, administration of Board relations, regulatory and
portfolio compliance and legal support.
86 Nuveen Investments
In addition to the foregoing services, the Independent Board Members also
noted the additional services that NAM or its affiliates provide to
closed-end funds, including, in particular, its secondary market support
activities and the costs of such activities. The Independent Board Members
have recognized Nuveen's continued commitment to supporting the secondary
market for the common shares of its closed-end funds through a variety of
programs designed to raise investor and analyst awareness and
understanding of closed-end funds. These efforts include maintaining an
investor relations program to timely provide information and education to
financial advisers and investors; providing advertising and marketing for
the closed-end funds; maintaining its closed-end fund website; and
providing educational seminars.
Based on their review, the Independent Board Members found that, overall,
the nature, extent and quality of services expected to be provided to the
Fund under the Advisory Agreement were satisfactory.
B. INVESTMENT PERFORMANCE
The Fund is new and therefore does not have its own performance history.
However, the Independent Board Members are familiar with NAM's performance
record on other Nuveen funds, and the Fund is expected to employ a
substantially similar investment philosophy and strategies that have
guided two other Nuveen state municipal closed-end funds (specifically,
the Nuveen New York Municipal Value Fund, Inc. (NNY) and the Nuveen
California Municipal Value Fund, Inc. (NCA)). Accordingly, the Board
Members were provided with certain performance information for these
comparable funds, including calendar year total returns for the years 2000
through 2008.
C. FEES, EXPENSES AND PROFITABILITY
1. Fees and Expenses
In evaluating the management fees and expenses that the Fund was
expected to bear, the Independent Board Members considered, among
other things, the Fund's proposed management fee structure and its
expected expense ratios in absolute terms as well as compared with
the fees and expense ratios of comparable, unaffiliated funds and
comparable, affiliated funds. In this regard, the Independent Board
Members noted the limited universe of municipal funds with an
unleveraged capital structure, and the even more limited universe of
state municipal funds with an unleveraged capital structure (i.e.,
none other than for the states of California and New York), which
made it difficult to make peer group comparisons.
In addition, the Fund was not expected to issue preferred shares or
debt instruments; however, the Board Members noted that the Fund may
make investments in inverse floating rate securities (including
inverse floating rate securities representing interests in so-called
"tender option bond trusts" formed by third-party sponsors for the
purpose of holding municipal bonds). The Independent Board Members
recognized that assets financed through the creation of tender
option bond trusts in which the Fund may invest or other financial
leverage used would be included in the amount of assets upon which
the advisory fee is calculated. In this regard, the Independent
Board Members noted that the advisory fee is based on a percentage
of average daily "Managed Assets." "Managed Assets" generally means
the total
Nuveen Investments 87
Annual Investment Management Agreement Approval Process (continued)
assets of the Fund (including assets attributable to the Fund's use
of financial leverage such as, but not limited to, proceeds from
tender option bond trusts) minus the sum of accrued liabilities
(other than Fund liabilities incurred for the express purpose of
creating financial leverage). Accordingly, the advisory fees paid to
NAM for investment advisory services will be higher if the Fund uses
financial leverage, which may create a conflict of interest between
NAM and the Fund's shareholders. This methodology is consistent with
that used on Nuveen taxable leveraged funds and a Nuveen national
municipal closed-end fund with a similar capital structure. The
Independent Board Members also considered the fund-level breakpoint
schedule and the complex-wide breakpoint schedule (described in
further detail below) and any applicable expense reimbursements to
be provided. Based on their review of the fee and expense
information provided, the Independent Board Members determined that
the Fund's management fees and net total expense ratio were
reasonable in light of the nature, extent and quality of services to
be provided to the Fund.
2. Comparisons with the Fees of Other Clients
Due to their experience with other Nuveen funds, the Board Members
were familiar with the fees NAM assesses to other clients of Nuveen
or its affiliates, including NAM's municipal separately managed
accounts. In evaluating the comparisons of fees, the Independent
Board Members have noted, at the Meeting or at prior meetings, that
the fee rates charged to a fund (such as the Fund) and charged to
other clients vary, among other things, because of the different
services involved and the additional regulatory and compliance
requirements associated with registered investment companies, such
as the Fund. Accordingly, the Independent Board Members have
considered the differences in the product types, including, but not
limited to, the services to be provided, the structure and
operations, product distribution and costs thereof, portfolio
investment policies, investor profiles, account sizes and regulatory
requirements. The Independent Board Members have noted, in
particular, that the range of services as described above to be
provided to a fund (such as the Fund) is much more extensive than
that provided to separately managed accounts. Given the inherent
differences in the products, particularly the extensive services to
be provided to a fund, the Independent Board Members believe such
facts justify the different levels of fees.
3. Profitability of Nuveen
In conjunction with its review of fees at prior meetings, the
Independent Board Members have considered the profitability of
Nuveen for its advisory activities (which incorporated Nuveen's
wholly-owned affiliated sub-advisers) and its financial condition.
At the Meeting or prior meetings, the Independent Board Members
reviewed the revenues and expenses of Nuveen's advisory activities
and the allocation methodology used in preparing the profitability
data.
88 Nuveen Investments
The Independent Board Members have also considered, at the Meeting
or at prior meetings, Nuveen's profitability compared with other
fund sponsors prepared by two independent third party service
providers as well as comparisons of the revenues, expenses and
profit margins of various unaffiliated management firms with similar
amounts of assets under management prepared by Nuveen.
In reviewing profitability, the Independent Board Members have
recognized the subjective nature of determining profitability, which
may be affected by numerous factors, including the allocation of
expenses. Further, the Independent Board Members have recognized the
difficulties in making comparisons as the profitability of other
advisers generally is not publicly available and the profitability
information that is available for certain advisers or management
firms may not be representative of the industry and may be affected
by, among other things, the adviser's particular business mix,
capital costs, types of funds managed and expense allocations.
Notwithstanding the foregoing, the Independent Board Members
reviewed Nuveen's methodology and assumptions for allocating
expenses across product lines to determine profitability. In
reviewing profitability, the Independent Board Members recognized
Nuveen's investment in its fund business. The Independent Board
Members further received the Form 8-K of Nuveen for the quarter
ending September 30, 2008. Based on its review, the Independent
Board Members concluded that Nuveen's level of profitability for its
advisory activities was reasonable in light of the services to be
provided.
In evaluating the reasonableness of the compensation, the
Independent Board Members also considered any other amounts expected
to be paid to NAM as well as any indirect benefits (such as soft
dollar arrangements, if any) NAM and its affiliates are expected to
receive that are directly attributable to their management of the
Fund, if any. See Section E below for additional information on
indirect benefits NAM may receive as a result of its relationship
with the Fund. Based on their review of the overall fee arrangements
of the Fund, the Independent Board Members determined that the
advisory fees and expected expenses of the Fund were reasonable.
Nuveen Investments 89
Annual Investment Management Agreement Approval Process (continued)
D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF
SCALE
With respect to economies of scale, the Independent Board Members
recognized the potential benefits resulting from the costs of the Fund
being spread over a larger asset base. The Independent Board Members
therefore considered whether the Fund could be expected to benefit from
any economies of scale. In considering economies of scale, the Independent
Board Members have recognized that economies of scale are difficult to
measure and predict with precision. Notwithstanding the foregoing, one
method to help ensure that shareholders share in these benefits is to
include breakpoints in the advisory fee schedule. Accordingly, the
Independent Board Members received and reviewed the schedule of proposed
advisory fees for the Fund, including the fund-level breakpoints thereto.
In this regard, given that the Fund is a closed-end fund, the Independent
Board Members recognized that although the Fund may from time to time make
additional share offerings, the growth in its assets will occur primarily
through appreciation of its investment portfolio.
In addition to fund-level advisory fee breakpoints, the Board also
considered the Fund's complex-wide fee arrangement. Pursuant to the
complex-wide fee arrangement, the fees of the funds in the Nuveen complex,
including the Fund, are reduced as the assets in the fund complex reach
certain levels. In evaluating the complex-wide fee arrangement, the
Independent Board Members have considered that the complex-wide fee
arrangement seeks to provide the benefits of economies of scale to fund
shareholders when total fund complex assets increase, even if assets of a
particular fund are unchanged or have decreased. The approach reflects the
notion that some of Nuveen's costs are attributable to services provided
to all its funds in the complex and therefore all funds benefit if these
costs are spread over a larger asset base. Based on their review, the
Independent Board Members concluded that the breakpoint schedule and
complex-wide fee arrangement were acceptable and desirable in providing
benefits from economies of scale to shareholders of the Fund.
90 Nuveen Investments
E. INDIRECT BENEFITS
In evaluating fees, the Independent Board Members also considered
information regarding potential "fall out" or ancillary benefits NAM or
its affiliates may receive as a result of its relationship with the Fund.
In this regard, the Independent Board Members considered the revenues
received by affiliates of NAM for serving as agent at Nuveen's preferred
trading desk and for serving as a co-manager in the initial public
offering of new closed-end exchange traded funds.
In addition to the above, the Independent Board Members considered whether
NAM will receive any benefits from soft dollar arrangements whereby a
portion of the commissions paid by the Fund for brokerage may be used to
acquire research that may be useful to NAM in managing the assets of the
Fund and other clients. The Independent Board Members noted that NAM does
not currently have any soft dollar arrangements; however, to the extent
certain bona fide agency transactions that occur on markets that
traditionally trade on a principal basis and riskless principal
transactions are considered as generating "commissions," NAM intends to
comply with the applicable safe harbor provisions.
Based on their review, the Independent Board Members concluded that any
indirect benefits received by NAM as a result of its relationship with the
Fund were reasonable and within acceptable parameters.
F. APPROVAL
The Independent Board Members did not identify any single factor discussed
previously as all-important or controlling. The Board Members, including a
majority of the Independent Board Members, concluded that the terms of the
Advisory Agreement were fair and reasonable, that NAM's fees are
reasonable in light of the services to be provided to the Fund and that
the Advisory Agreement should be and was approved on behalf of the Fund.
Nuveen Investments 91
Reinvest Automatically Easily and Conveniently
NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET UP YOUR
REINVESTMENT ACCOUNT.
NUVEEN CLOSED-END FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End Fund allows you to conveniently reinvest dividends
and/or capital gains distributions in additional Fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of
tax-free compounding. Just like dividends or distributions in cash, there
may be times when income or capital gains taxes may be payable on
dividends or distributions that are reinvested.
It is important to note that an automatic reinvestment plan does not
ensure a profit, nor does it protect you against loss in a declining
market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a
statement showing your total dividends and distributions, the date of
investment, the shares acquired and the price per share, and the total
number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above
net asset value at the time of valuation, the Fund will issue new shares
at the greater of the net asset value or 95% of the then-current market
price. If the shares are trading at less than net asset value, shares for
your account will be purchased on the open market. If the Plan Agent
begins purchasing Fund shares on the open market while shares are trading
below net asset value, but the Fund's shares subsequently trade at or
above their net asset value before the Plan Agent is able to complete its
purchases, the Plan Agent may cease open-market purchases and may invest
the uninvested portion of the distribution in newly-issued Fund shares at
a price equal to the greater of the shares' net asset value or 95% of the
shares' market value on the last business day immediately prior to the
purchase date. Dividends and distributions received to purchase shares in
the open market will normally be invested shortly after the dividend
payment date. No interest will be paid on dividends and distributions
awaiting reinvestment. Because the market price of the shares may increase
before purchases are completed, the average purchase price
92 Nuveen Investments
per share may exceed the market price at the time of valuation, resulting
in the acquisition of fewer shares than if the dividend or distribution
had been paid in shares issued by the Fund. A pro rata portion of any
applicable brokerage commissions on open market purchases will be paid by
Plan participants. These commissions usually will be lower than those
charged on individual transactions.
FLEXIBLE
You may change your distribution option or withdraw from the Plan at any
time, should your needs or situation change. Should you withdraw, you can
receive a certificate for all whole shares credited to your reinvestment
account and cash payment for fractional shares, or cash payment for all
reinvestment account shares, less brokerage commissions and a $2.50
service fee.
You can reinvest whether your shares are registered in your name, or in
the name of a brokerage firm, bank, or other nominee. Ask your investment
advisor if his or her firm will participate on your behalf. Participants
whose shares are registered in the name of one firm may not be able to
transfer the shares to another firm and continue to participate in the
Plan.
The Fund reserves the right to amend or terminate the Plan at any time.
Although the Fund reserves the right to amend the Plan to include a
service charge payable by the participants, there is no direct service
charge to participants in the Plan at this time.
CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS
For more information on the Nuveen Automatic Reinvestment Plan or to
enroll in or withdraw from the Plan, speak with your financial advisor or
call us at (800) 257-8787.
Nuveen Investments 93
Glossary of Terms Used in this Report
o AUCTION RATE BOND: An auction rate bond is a security whose interest
payments are adjusted periodically through an auction process, which
process typically also serves as a means for buying and selling the
bond. Auctions that fail to attract enough buyers for all the shares
offered for sale are deemed to have "failed," with current holders
receiving a formula-based interest rate until the next scheduled
auction.
o AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to
express an investment's performance over a particular, usually
multi-year time period. It expresses the return that would have been
necessary each year to equal the investment's actual cumulative
performance (including change in NAV or market price and reinvested
dividends and capital gains distributions, if any) over the time
period being considered.
o AVERAGE EFFECTIVE MATURITY: The average of the number of years to
maturity of the bonds in a Fund's portfolio, computed by weighting
each bond's time to maturity (the date the security comes due) by
the market value of the security. This figure does not account for
the likelihood of prepayments or the exercise of call provisions
unless an escrow account has been established to redeem the bond
before maturity. The market value weighting for an investment in an
inverse floating rate security is the value of the portfolio's
residual interest in the inverse floating rate trust, and does not
include the value of the floating rate securities issued by the
trust.
o INVERSE FLOATERS: Inverse floating rate securities, also known as
inverse floaters, are created by depositing a municipal bond,
typically with a fixed interest rate, into a special purpose trust
created by a broker-dealer. This trust, in turn, (a) issues floating
rate certificates typically paying short-term tax-exempt interest
rates to third parties in amounts equal to some fraction of the
deposited bond's par amount or market value, and (b) issues an
inverse floating rate certificate (sometimes referred to as an
"inverse floater") to an investor (such as a Fund) interested in
gaining investment exposure to a long-term municipal bond. The
income received by the holder of the inverse floater varies
inversely with the short-term rate paid to the floating rate
certificates' holders, and in most circumstances the holder of the
inverse floater bears substantially all of the underlying bond's
downside investment risk. The holder of the inverse floater
typically also benefits disproportionately from any potential
appreciation of the underlying bond's value. Hence, an inverse
floater essentially represents an investment in the underlying bond
on a leveraged basis.
94 Nuveen Investments
o LEVERAGE-ADJUSTED DURATION: Duration is a measure of the expected
period over which a bond's principal and interest will be paid, and
consequently is a measure of the sensitivity of a bond's or bond
Fund's value to changes when market interest rates change.
Generally, the longer a bond's or Fund's duration, the more the
price of the bond or Fund will change as interest rates change.
Leverage-adjusted duration takes into account the leveraging process
for a Fund and therefore is longer than the duration of the Fund's
portfolio of bonds.
o MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An
investment's current annualized dividend divided by its current
market price.
o NET ASSET VALUE (NAV): A Fund's NAV per common share is calculated
by subtracting the liabilities of the Fund (including any Preferred
shares issued in order to leverage the Fund) from its total assets
and then dividing the remainder by the number of common shares
outstanding. Fund NAVs are calculated at the end of each business
day.
o TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable
investment to equal, on an after-tax basis, the yield of a municipal
bond investment.
o ZERO COUPON BOND: A zero coupon bond does not pay a regular interest
coupon to its holders during the life of the bond. Tax-exempt income
to the holder of the bond comes from accretion of the difference
between the original purchase price of the bond at issuance and the
par value of the bond at maturity and is effectively paid at
maturity. The market prices of zero coupon bonds generally are more
volatile than the market prices of bonds that pay interest
periodically.
Nuveen Investments 95
Notes
96 Nuveen Investments
Other Useful Information
BOARD OF DIRECTORS/TRUSTEES
John P. Amboian
Robert P. Bremner
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Judith M. Stockdale
Carole E. Stone
Terence J. Toth
FUND MANAGER
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust
Company
Boston, MA
TRANSFER AGENT AND SHAREHOLDER SERVICES
State Street Bank & Trust Company
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
Chicago, IL
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
You may obtain (i) each Fund's quarterly portfolio of investments, (ii)
information regarding how the Funds voted proxies relating to portfolio
securities held during the twelve-month period ended June 30, 2009, and (iii) a
description of the policies and procedures that the Funds used to determine how
to vote proxies relating to portfolio securities without charge, upon request,
by calling Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website
at www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities
and Exchange Commission ("SEC"). The SEC may charge a copying fee for this
information. Visit the SEC on-line at http://www.sec.gov or in person at the
SEC's Public Reference Room in Washington, D.C. Call the SEC at (202) 942-8090
for room hours and operation. You may also request Fund information by sending
an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public
References Section at 100 F Street NE, Washington, D.C. 20549.
CEO CERTIFICATION DISCLOSURE
Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange
(NYSE) the annual CEO certification as required by Section 303A.12(a) of the
NYSE Listed Company Manual.
Each Fund has filed with the SEC the certification of its Chief Executive
Officer and Chief Financial Officer required by Section 302 of the
Sarbanes-Oxley Act.
COMMON AND PREFERRED SHARE INFORMATION
Each Fund intends to repurchase and/or redeem shares of its own common or
preferred stock in the future at such times and in such amounts as is deemed
advisable. During the period covered by this report, the Funds repurchased
and/or redeemed shares of their common and/or preferred stock as shown in the
accompanying table.
COMMON SHARES PREFERRED SHARES
FUND REPURCHASED REDEEMED
NCA -- N/A
NCB -- N/A
NCP 11,800 --
NCO 18,300 405
NQC -- --
NVC 21,200 245
NUC 22,100 312
N/A - Fund is unleveraged.
Any future repurchases and/or redemptions will be reported to shareholders in
the next annual or semi-annual report.
Nuveen Investments 97
Nuveen Investments:
Serving Investors for Generations
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
WE OFFER MANY DIFFERENT INVESTING SOLUTIONS FOR OUR CLIENTS' DIFFERENT NEEDS.
Nuveen Investments is a global investment management firm that seeks to help
secure the long-term goals of institutions and high net worth investors as well
as the consultants and financial advisors who serve them. Nuveen Investments
markets its growing range of specialized investment solutions under the
high-quality brands of HydePark, NWQ, Nuveen, Santa Barbara, Symphony,
Tradewinds and Winslow Capital. In total, the Company managed $128 billion of
assets on June 30, 2009.
FIND OUT HOW WE CAN HELP YOU REACH YOUR FINANCIAL GOALS.
To learn more about the products and services Nuveen Investments offers, talk to
your financial advisor, or call us at (800) 257-8787. Please read the
information provided carefully before you invest. Be sure to obtain a
prospectus, where applicable. Investors should consider the investment objective
and policies, risk considerations, charges and expenses of the Fund carefully
before investing. The prospectus contains this and other information relevant to
an investment in the Fund. For a prospectus, please contact your securities
representative or NUVEEN INVESTMENTS, 333 W. WACKER DR., CHICAGO, IL 60606.
Please read the prospectus carefully before you invest or send money.
Learn more about Nuveen Funds at: WWW.NUVEEN.COM/CEF
o Share prices
o Fund details
o Daily financial news
o Investor education
o Interactive planning tools
Distributed by
Nuveen Investments, LLC
333 West Wacker Drive It's not what you earn,
Chicago, IL 60606 it's what you keep.(R)
www.nuveen.com
ESA-A-0809D
ITEM 2. CODE OF ETHICS.
Not applicable to this filing.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable to this filing.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable to this filing.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to this filing.
ITEM 6. SCHEDULE OF INVESTMENTS.
(a) See Portfolio of Investments in Item 1.
(b) Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrant's Board of Directors or Trustees
implemented after the registrant last provided disclosure in response to
this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")(17 CFR
240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter
of the period covered by this report that has materially affected, or
is reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable to
this filing.
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: See
Ex-99.CERT attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons: Not applicable.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR
270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference: See Ex-99.906 CERT attached hereto.
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) Nuveen California Municipal Value Fund 2
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By (Signature and Title) /s/ Kevin J. McCarthy
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Kevin J. McCarthy
(Vice President and Secretary)
Date: November 6, 2009
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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) /s/ Gifford R. Zimmerman
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Gifford R. Zimmerman
Chief Administrative Officer
(principal executive officer)
Date: November 6, 2009
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By (Signature and Title) /s/ Stephen D. Foy
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Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: November 6, 2009
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