nq1.htm



 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY
 
Investment Company Act file number 811-22272
 
Nuveen California Municipal Value Fund 2
(Exact name of registrant as specified in charter)
 
Nuveen Investments
        333 West Wacker Drive, Chicago, Illinois 60606         
(Address of principal executive offices) (Zip code)
 

Kevin J. McCarthy Vice President and Secretary
        333 West Wacker Drive, Chicago, Illinois 60606         
(Name and address of agent for service)
 
Registrant's telephone number, including area code:         312-917-7700        
 
Date of fiscal year end:            2/28          
 
Date of reporting period:         11/30/09         
 
Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.
 
A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q 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 the 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. § 3507.


 
 
 


 

Item 1. Schedule of Investments
 

  Portfolio of Investments (Unaudited)      
  Nuveen California Municipal Value Fund 2 (NCB)      
      November 30, 2009      
Principal   Optional Call    
Amount (000) Description (1) Provisions (2) Ratings (3)                        Value
  Consumer Staples – 4.8% (4.9% of Total Investments)      
$    3,500  Tobacco Securitization Authority of Northern California, Tobacco Settlement Asset-Backed  6/15 at 100.00  BBB  $    2,437,610 
  Bonds, Series 2005A-1, 5.500%, 6/01/45       
  Education and Civic Organizations – 9.9% (10.0% of Total Investments)      
500  California Educational Facilities Authority, Revenue Bonds, University of Redlands, Series  10/15 at 100.00  A3  499,965 
  2005A, 5.000%, 10/01/25       
2,510  California Educational Facilities Authority, Revenue Bonds, University of the Pacific, Series  11/19 at 100.00  A2  2,509,875 
  2009, 5.500%, 11/01/39       
1,965  California State Public Works Board, Lease Revenue Bonds, University of California Department  4/19 at 100.00  A–  2,020,551 
  of Education Riverside Campus Project, Series 2009B, 5.750%, 4/01/23       
4,975  Total Education and Civic Organizations      5,030,391 
  Health Care – 21.9% (22.3% of Total Investments)      
1,000  ABAG Finance Authority for Non-Profit Corporations, California, Cal-Mortgage Insured Health  5/19 at 100.00  A  1,046,220 
  Facility Revenue Bonds, Saint Rose Hospital, Series 2009A, 6.000%, 5/15/29       
1,000  California Health Facilities Financing Authority Revenue Bonds, Sereis 2009A (Childrens  11/19 at 100.00  A  1,042,220 
  Hospital of Orange County, 6.500%, 11/01/38       
1,900  California Health Facilities Financing Authority, Revenue Bonds, Catholic Healthcare West,  7/19 at 100.00  A  1,978,565 
  Series 2009A, 6.000%, 7/01/39       
2,000  California Health Facilities Financing Authority, Revenue Bonds, Kaiser Permanante System,  3/16 at 100.00  A+  1,863,700 
  Series 2006, 5.250%, 3/01/45       
850  California Municipal Financing Authority, Certificates of Participation, Community Hospitals  2/17 at 100.00  Baa2  794,266 
  of Central California, Series 2007, 5.250%, 2/01/27       
1,400  California Statewide Communities Development Authority, Revenue Bonds, Adventist Health  3/18 at 100.00  AAA  1,349,460 
  System West, Series 2007B, 5.000%, 3/01/37 – AGC Insured       
125  California Statewide Community Development Authority, Revenue Bonds, Kaiser Permanante  3/16 at 100.00  A+  113,130 
  System, Series 2006, 5.000%, 3/01/41       
1,500  California Statewide Community Development Authority, Revenue Bonds, Sutter Health, Series  8/18 at 100.00  AAA  1,479,735 
  2004D, 5.050%, 8/15/38 – FSA Insured       
800  Hospital Authority of Delaware County, Indiana, Hospital Revenue Bonds, Cardinal Health  8/16 at 100.00  Baa3  693,008 
  System, Series 2006, 5.000%, 8/01/24       
850  Illinois Finance Authority, Revenue Bonds, Sherman Health Systems, Series 2007A,  8/17 at 100.00  Baa1  771,673 
  5.500%, 8/01/37       
11,425  Total Health Care      11,131,977 
  Housing/Single Family – 10.9% (11.1% of Total Investments)      
1,485  California Housing Finance Agency, California, Home Mortgage Revenue Bonds, Series 2008L,  2/18 at 100.00  AA–  1,472,170 
  5.500%, 8/01/38       
2,500  California Housing Finance Agency, Home Mortgage Revenue Bonds, Series 2006K, 4.625%,  2/16 at 100.00  AA–  2,166,900 
  8/01/26 (Alternative Minimum Tax)       
2,000  California State Department of Veteran Affairs, Home Purchase Revenue Bonds, Series 2007b,  12/16 at 100.00  Aa2  1,897,440 
  5.150%, 12/01/27 (Alternative Minimum Tax)       
5,985  Total Housing/Single Family      5,536,510 
  Industrials – 1.6% (1.6% of Total Investments)      
900  California Enterprise Development Authority, Sewer Facilities Revenue, Anheuser-Busch Project,  9/12 at 100.00  BBB+  790,524 
  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 Revenue Bonds, International  6/15 at 100.00  BBB  518,778 
  Paper Company Project, Series 2005A, 5.200%, 6/01/25 (Alternative Minimum Tax)       
  Tax Obligation/General – 12.0% (12.2% of Total Investments)      
2,000  California, Various Purpose General Obligation Bonds, Series 2007, 5.000%, 6/01/37 –  6/17 at 100.00  A  1,773,880 
  NPFG Insured       
2,100  Carlsbad Unified School District, San Diego County, California, General Obligation Bonds,  5/24 at 100.00  AA  1,270,101 
  Series 2009B, 0.000%, 5/01/34       
1,120  Oakland, California, General Obligation Bonds, Measure Series 2009DD, 5.250%, 1/15/29  1/19 at 100.00  AA–  1,137,786 
1,895  Pacific Grove Unified School District, California, General Obligation Bonds, Series 2009C.,  8/19 at 100.00  AA  1,911,202 
  5.375%, 8/01/39       
7,115  Total Tax Obligation/General      6,092,969 
  Tax Obligation/Limited – 11.9% (12.1% of Total Investments)      
1,000  Lancaster Redevelopment Agency Combined Project Areas, Housing Programs, California,  8/19 at 100.00  A  1,057,670 
  Tax Allocation Bonds 2009, 6.875%, 8/01/39       
1,000  San Francisco City and County, California, Redevelopment Financing Authority, Tax Allocation  8/19 at 100.00  A  1,048,530 
  Revenue Bonds, San Francisco Redevelopment Projects, Series 2009B, 6.625%, 8/01/39       
1,500  San Francisco City and County, California, Certificates of Participation, Multiple Capital  4/19 at 100.00  AA–  1,517,550 
  Improvement Projects, Series 2009A, 5.250%, 4/01/31       
500  Val Verde Unified School District Financing Authority, California, Special Tax Revenue, Junior  10/13 at 102.00  N/R  485,950 
  Lien Refunding Series 2003, 6.250%, 10/01/28       
2,000  Westlake Village, California, Certificates of Participation, Financign Project, Series 2009,  6/16 at 100.00  AA+  1,922,500 
  5.000%, 6/01/39       
6,000  Total Tax Obligation/Limited      6,032,200 
  Transportation – 2.0% (2.0% of Total Investments)      
1,000  San Francisco Airports Commission, California, Revenue Bonds, San Francisco International  5/16 at 100.00  A1  1,027,570 
  Airport, Second Series 2002, Issue 32G, 5.000%, 5/01/24 – FGIC Insured       
  Utilities – 14.0% (14.1% of Total Investments)      
1,000  M-S-R Energy Authority, California, Gas Revenue Bonds, Citigroup Prepay Contracts, Series 2009C,  No Opt. Call  A  1,039,140 
  6.500%,11/01/39       
2,495  Roseville Natural Gas Financing Authority, California, Gas Revenue Bonds, Series 2007,  No Opt. Call  A  2,542,904 
  5.000%, 2/15/17       
2,400  Southern California Public Power Authority, Natural Gas Project 1 Revenue Bonds, Series 2007A,  No Opt. Call  A  2,422,176 
  5.250%, 11/01/24       
1,000  Tuolumne Wind Project Authority, California, Revenue Bonds, Tuolumne Company Project, Series  1/19 at 100.00  A+  1,066,960 
  2009A, 5.625%, 1/01/29       
6,895  Total Utilities      7,071,180 
  Water and Sewer – 8.6% (8.7% of Total Investments)      
2,000  Orange County Sanitation District, California, Certificates of Participation, Series 2007,  2/19 at 100.00  AAA  2,251,840 
  Trust 3020, 17.274%, 2/01/35 (IF)       
1,000  San Diego Public Facilities Financing Authority, California, Sewerage Revenue Bonds, Refunding  5/19 at 100.00  A+  1,078,810 
  Series 2009B, 5.250%, 5/15/25       
500  Western Municipal Water District Facilities Authority, California, Water Revenue Bonds, Series  10/19 at 100.00  AA+  501,120 
  2009B, 5.000%, 10/01/39       
500  Western Riverside Water & Wastewater Financing Authority, California, Revenue Bonds, Western  8/19 at 100.00  AAA  515,008 
  Municipal Water District, Series 2009, 5.625%, 9/01/39       
4,000  Total Water and Sewer      4,346,778 
$     52,380  Total Investments (cost $46,384,323) – 98.6%      50,016,487 
  Other Assets Less Liabilities – 1.4%      722,059 
  Net Assets – 100%      $ 50,738,546 

 

 
Fair Value Measurements
 
In determining the value of the 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 the Fund's fair value measurements as of November 30, 2009:
 
  Level 1 Level 2 Level 3 Total
Investments:         
Municipal Bonds  $ —  $50,016,487  $ —  $50,016,487 

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 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 securities reflected as financing transactions, 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 value of the Fund.
 
At November 30, 2009, the cost of investments was $46,326,719.
 
Gross unrealized appreciation and gross unrealized depreciation of investments at November 30, 2009, were as follows:
 
Gross unrealized:   
  Appreciation  $3,707,223 
  Depreciation  (17,455)
Net unrealized appreciation (depreciation) of investments  $3,689,768 

(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. 
(IF)  Inverse floating rate investment. 

 
 
 


 
Item 2. 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 Rule 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934 (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 registrant's last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.
 
Item 3. Exhibits.

File as exhibits as part of this Form a separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)), exactly as set forth below: See EX-99 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 
 
By (Signature and Title)      /s/ Kevin J. McCarthy                    
                                                Kevin J. McCarthy
                                                Vice President and Secretary
 
Date         January 29, 2010        
 
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                    
                                               Gifford R. Zimmerman
                                               Chief Administrative Officer (principal executive officer) 
 
Date         January 29, 2010        
 
By (Signature and Title)     /s/ Stephen D. Foy                              
                                               Stephen D. Foy
                                               Vice President and Controller (principal financial officer) 
 
Date        January 29, 2010