Unassociated Document



 
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:         11/30/10         
 
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, 2010
      
Principal
    
Optional Call
    
Amount (000)
  
Description (1)
Provisions (2)
Ratings (3)
Value
   
Consumer Staples – 4.7% (4.8% of Total Investments)
      
$    3,500
  
Tobacco Securitization Authority of Northern California, Tobacco Settlement Asset-Backed
6/15 at 100.00
Baa3
$    2,431,310
   
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
501,135
   
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
2,513,389
   
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
A2
2,062,268
   
of Education Riverside Campus Project, Series 2009B, 5.750%, 4/01/23
      
4,975
  
Total Education and Civic Organizations
    
5,076,792
   
Health Care – 23.3% (23.6% of Total Investments)
      
1,000
  
ABAG Finance Authority for Non-Profit Corporations, California, Cal-Mortgage Insured Health
5/19 at 100.00
A–
1,014,520
   
Facility Revenue Bonds, Saint Rose Hospital, Series 2009A, 6.000%, 5/15/29
      
1,900
  
California Health Facilities Financing Authority, Revenue Bonds, Catholic Healthcare West,
7/19 at 100.00
A
1,985,367
   
Series 2009A, 6.000%, 7/01/39
      
1,000
  
California Health Facilities Financing Authority, Revenue Bonds, Childrens Hospital of Orange
11/19 at 100.00
A
1,045,320
   
County, Series 2009A, 6.500%, 11/01/38
      
2,000
  
California Health Facilities Financing Authority, Revenue Bonds, Kaiser Permanante System,
3/16 at 100.00
A+
1,947,140
   
Series 2006, 5.250%, 3/01/45
      
850
  
California Municipal Financing Authority, Certificates of Participation, Community Hospitals
2/17 at 100.00
Baa2
801,304
   
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
AA+
1,351,294
   
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+
117,401
   
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
AA+
1,502,265
   
2004D, 5.050%, 8/15/38 – AGM Insured
      
800
  
Hospital Authority of Delaware County, Indiana, Hospital Revenue Bonds, Cardinal Health
8/16 at 100.00
Baa3
743,664
   
System, Series 2006, 5.000%, 8/01/24
      
850
  
Illinois Finance Authority, Revenue Bonds, Sherman Health Systems, Series 2007A,
8/17 at 100.00
BBB
775,872
   
5.500%, 8/01/37
      
725
  
Palomar Pomerado Health Care District, California, Certificates of Participation, Series 2010,
11/20 at 100.00
Baa3
692,665
   
6.000%, 11/01/41
      
12,150
  
Total Health Care
    
11,976,812
   
Housing/Multifamily – 0.4% (0.4% of Total Investments)
      
230
  
California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects
8/20 at 100.00
BBB–
222,762
   
Series 2010A, 6.400%, 8/15/45
      
   
Housing/Single Family – 10.8% (11.0% of Total Investments)
      
1,485
  
California Housing Finance Agency, California, Home Mortgage Revenue Bonds, Series 2008L,
2/18 at 100.00
A
1,429,788
   
5.500%, 8/01/38
      
2,500
  
California Housing Finance Agency, Home Mortgage Revenue Bonds, Series 2006K, 4.625%,
2/16 at 100.00
A
2,208,125
   
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
AA
1,917,980
   
5.150%, 12/01/27 (Alternative Minimum Tax)
      
5,985
  
Total Housing/Single Family
    
5,555,893
   
Industrials – 1.7% (1.7% of Total Investments)
      
900
  
California Enterprise Development Authority, Sewer Facilities Revenue, Anheuser-Busch Project,
9/12 at 100.00
BBB+
850,032
   
Senior Lien Series 2007, 5.300%, 9/01/47 (Alternative Minimum Tax)
      
   
Materials – 1.1% (1.1% of Total Investments)
      
585
  
Courtland Industrial Development Board, Alabama, Solid Waste Revenue Bonds, International
6/15 at 100.00
BBB
557,505
   
Paper Company Project, Series 2005A, 5.200%, 6/01/25 (Alternative Minimum Tax)
      
   
Tax Obligation/General – 12.3% (12.4% of Total Investments)
      
2,000
  
California, Various Purpose General Obligation Bonds, Series 2007, 5.000%, 6/01/37 –
6/17 at 100.00
A1
1,891,980
   
NPFG Insured
      
2,100
  
Carlsbad Unified School District, San Diego County, California, General Obligation Bonds,
5/24 at 100.00
AA
1,255,989
   
Series 2009B, 0.000%, 5/01/34
      
1,120
  
Oakland, California, General Obligation Bonds, Measure DD Series 2009B, 5.250%, 1/15/29
1/19 at 100.00
Aa2
1,148,963
1,895
  
Pacific Grove Unified School District, California, General Obligation Bonds, Series 2009C,
8/19 at 100.00
AA
2,003,754
   
5.375%, 8/01/39
      
7,115
  
Total Tax Obligation/General
    
6,300,686
   
Tax Obligation/Limited – 12.9% (13.1% of Total Investments)
      
500
  
California State Public Works Board, Lease Revenue Bonds, Various Capital Projects, Series
3/20 at 100.00
A2
511,520
   
2010A-1, 6.000%, 3/01/35
      
1,000
  
Lancaster Redevelopment Agency, California, Combined Project Areas Housing Programs, Tax
8/19 at 100.00
A
1,096,960
   
Allocation Bonds, Series 2009, 6.875%, 8/01/39
      
1,000
  
San Francisco City and County, California, Redevelopment Financing Authority, Tax Allocation
8/19 at 100.00
A1
1,055,070
   
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–
1,539,600
   
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
475,235
   
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+
1,952,500
   
5.000%, 6/01/39
      
6,500
  
Total Tax Obligation/Limited
    
6,630,885
   
Transportation – 2.0% (2.1% of Total Investments)
      
1,000
  
San Francisco Airports Commission, California, Revenue Bonds, San Francisco International
5/16 at 100.00
A1
1,037,890
   
Airport, Second Series 2002, Issue 32G, 5.000%, 5/01/24 – FGIC Insured
      
   
Utilities – 14.2% (14.4% of Total Investments)
      
1,000
  
M-S-R Energy Authority, California Gas Revenue Bonds, Citigroup Prepay Contracts, Series 2009C,
No Opt. Call
A
1,088,600
   
6.500%, 11/01/39
      
2,495
  
Roseville Natural Gas Financing Authority, California, Gas Revenue Bonds, Series 2007,
No Opt. Call
A
2,618,501
   
5.000%, 2/15/17
      
2,400
  
Southern California Public Power Authority, Natural Gas Project 1 Revenue Bonds, Series 2007A,
No Opt. Call
A
2,496,240
   
5.250%, 11/01/24
      
1,000
  
Tuolumne Wind Project Authority, California, Revenue Bonds, Tuolumne Company Project, Series
1/19 at 100.00
A+
1,068,170
   
2009A, 5.625%, 1/01/29
      
6,895
  
Total Utilities
    
7,271,511
   
Water and Sewer – 5.3% (5.4% of Total Investments)
      
2,000
  
Orange County Sanitation District, California, Certificates of Participation, Series 2009,
2/19 at 100.00
AAA
2,223,600
   
Trust 3020, 17.045%, 2/01/35 (IF)
      
500
  
Western Riverside Water & Wastewater Financing Authority, California, Revenue Bonds, Western
8/19 at 100.00
AA+
518,305
   
Municipal Water District, Series 2009, 5.625%, 9/01/39 – AGC Insured
      
2,500
  
Total Water and Sewer
    
2,741,905
$ 52,335
  
Total Investments (cost $46,457,703) – 98.6%
    
50,653,983
   
Other Assets Less Liabilities – 1.4%
    
708,079
   
Net Assets Applicable to Common Shares – 100%
    
$ 51,362,062
 
 
 
 
 

 
Fair Value Measurements
 
 
In determining the fair 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 methodologies 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, 2010:
 
         
 
Level 1
Level 2
Level 3
Total
Investments:
        
Municipal Bonds
$ —
$50,653,983
$ —
$50,653,983
 
 
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, 2010, the cost of investments was $46,290,256.
 
 
Gross unrealized appreciation and gross unrealized depreciation of investments at November 30, 2010, were as follows:
 
   
Gross unrealized:
  
Appreciation
$ 4,413,920
Depreciation
(50,193)
Net unrealized appreciation (depreciation) of investments
$ 4,363,727
 
     
(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 highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investor Service,
   
Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or
   
BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any
   
of these national rating agencies.
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 27, 2011        
 
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 27, 2011        
 
By (Signature and Title)     /s/ Stephen D. Foy                              
                                                   Stephen D. Foy
                                                  Vice President and Controller (principal financial officer) 
 
Date         January 27, 2011