SEMIANNUAL REPORT February 28, 2003
Nuveen
Municipal Closed-End
Exchange-Traded
Funds
CALIFORNIA
NCA
NCP
NCO
NQC
NVC
NUC
Photo of: Woman and girl looking at starfish.
Photo of: Couple walking.
DEPENDABLE,
TAX-FREE INCOME
BECAUSE
IT'S NOT WHAT YOU EARN,
IT'S WHAT YOU KEEP.(R)
Logo: NUVEEN Investments
FASTER INFORMATION
RECEIVE YOUR
NUVEEN FUND REPORT
ELECTRONICALLY
By registering for electronic delivery, you will receive an e-mail as soon as
your Nuveen Fund information is available. Click on the link and you will be
taken directly to the report. Your Fund report can be viewed and saved on your
computer. Your report will arrive faster via e-mail than by traditional mail.
Registering is easy and only takes a few minutes (see instructions at right).
SOME COMMON CONCERNS:
WILL MY E-MAIL ADDRESS BE DISTRIBUTED TO OTHER COMPANIES?
No, your e-mail address is strictly confidential and will not be used for
anything other than notification of shareholder information.
WHAT IF I CHANGE MY MIND AND WANT TO RECEIVE INVESTOR MATERIALS THROUGH REGULAR
MAIL DELIVERY AGAIN?
If you decide you do not like receiving you reports electronically, it's a
simple process to go back to regular mail delivery.
IF YOUR NUVEEN FUND DIVIDENDS AND STATEMENTS
COME FROM YOUR FINANCIAL ADVISOR OR BROKERAGE ACCOUNT,
FOLLOW THE STEPS OUTLINED BELOW:
1 Go to WWW.INVESTORDELIVERY.COM
2 Refer to the address sheet that accompanied this report. Enter the personal
13-CHARACTER ENROLLMENT NUMBER imprinted near your name.
3 You'll be taken to a page with several options. Select the NEW
ENROLLMENT-CREATE screen. Once there, enter your e-mail address (e.g.
yourID@providerID.com), and a personal, 4-digit PIN number of your choice.
(Pick a number that's easy to remember.)
4 Click Submit. Confirm the information you just entered is correct, then
click Submit again.
5 You should get a confirmation e-mail within 24 hours. If you do not, go
back through these steps to make sure all the information is correct.
6 Use this same process if you need to change your registration information
or cancel internet viewing.
IF YOUR NUVEEN FUND DIVIDENDS AND STATEMENTS
COME DIRECTLY TO YOU FROM NUVEEN,
FOLLOW THE STEPS OUTLINED BELOW:
1 Go to WWW.NUVEEN.COM
2 Select ACCESS YOUR ACCOUNT. Select the E-REPORT ENROLLMENT section. Click
on Enrollment Today.
3 You'll be taken to a screen that asks for your Social Security number and
e-mail address. Fill in this information, then click Enroll.
4 You should get a confirmation e-mail within 24 hours. If you do not, go
back through these steps to make sure all the information is correct.
5 Use this same process if you need to change your registration information
or cancel internet viewing.
Logo: NUVEEN Investments
Photo of: Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
Sidebar text:
"I URGE YOU TO CONSIDER RECEIVING FUTURE FUND REPORTS AND OTHER FUND INFORMATION
BY E-MAIL AND THE INTERNET .....SEE THE INSIDE FRONT COVER OF THIS REPORT FOR
STEP-BY-STEP INSTRUCTIONS."
Dear
SHAREHOLDER:
Once again, I am pleased to write that during the period covered by this report
your Nuveen California Fund continued to meet its objective of providing
attractive monthly income free from federal income taxes and, where applicable,
state income taxes. Detailed information on your Fund's performance can be found
in the Portfolio Managers' Comments and on the Performance Overview pages within
this report. Please take the time to read them.
In addition to providing regular tax-free income, we believe that a municipal
bond investment like your Nuveen Fund also may offer opportunities to reduce the
risk of your overall investment portfolio. This is because the prices of
municipal bonds may move differently than the prices of the common stocks,
mutual funds or other investments you may own. Since one part of your portfolio
may be going up when another is going down, portfolio diversification may reduce
your overall risk. Your financial advisor can explain the advantages of
portfolio diversification in more detail. I urge you to contact him or her soon
for more information on this important investment strategy.
I also urge you to consider receiving future Fund reports and other Fund
information by e-mail and the Internet. Not only will you be able
to receive the information faster, but this also may help lower your Fund's
expenses. Sign up is quick and easy -- see the inside front cover of this report
for step-by-step instructions.
For more than 100 years, Nuveen has specialized in offering quality investments
such as your Nuveen Fund to those seeking to accumulate and preserve wealth. Our
commitment to careful research, constant surveillance and judicious trading by a
seasoned portfolio management team has never been stronger. Our mission
continues to be to assist you and your financial advisor by offering the
investment solutions and services that can help you meet your financial
objectives. We thank you for choosing us as a partner as you work toward that
goal.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
April 14, 2003
1
Nuveen California Municipal Closed-End Exchange-Traded Funds
(NCA, NCP, NCO, NQC, NVC, NUC)
Portfolio Managers'
COMMENTS
Portfolio managers Bill Fitzgerald and Scott Romans review U.S. and state
economic conditions, key investment strategies, and the recent performance of
the Funds. A 15-year veteran of Nuveen, Bill has managed NCP and NCO since 1991,
NQC since 1992, NUC since 1993, and NCA and NVC since 1998. Scott, who has three
years of investment experience at Nuveen, joined Bill in managing these Funds in
January 2003.
WHAT WERE THE MAJOR FACTORS AFFECTING THE U.S. ECONOMY AND THE MUNICIPAL MARKET
DURING THIS REPORTING PERIOD?
Generally, the underlying economic and market conditions have not changed
significantly since our last shareholder report dated August 31, 2002. We
believe the most influential factors shaping the U.S. economy and the municipal
market continued to be the slow pace of economic growth and interest rates that
remained at 40-year lows. At the same time, continued geopolitical uncertainty,
centering on the situation in Iraq and the ongoing threat of terrorism, also had
an economic impact during this reporting period, particularly in terms of
investor sentiment.
In the municipal market, the sluggish economic recovery and general lack of
inflationary pressures created conditions that helped many bonds perform well
during much of the period ended February 28, 2003. In calendar year 2002,
municipal supply nationwide established a new record of $357 billion, an
increase of 25% over 2001. Issuance remained high during January and February
2003, up 23% over the same period in 2002. Demand for municipal bonds stayed
strong over most of this reporting period, as institutional investors, including
traditional municipal bond purchasers such as property/casualty insurance
companies were active buyers in the municipal market.
HOW WERE ECONOMIC AND MARKET CONDITIONS IN CALIFORNIA?
Municipal supply continued to be very strong in California during 2002, with $50
billion of new bonds, an increase of 50% over 2001. Issuance in the first two
months of 2003 totaled $11.5 billion, up 136% over January-February 2002.
This dramatic increase in supply has largely been driven by shortfalls in the
state budget, and the low level of interest rates. In November 2002, the state
completed the issuance of nearly $12 billion in electric power bonds. The
proceeds from this issue were used to repay the $6.3 billion loan from
California's general fund that financed purchases for the state's investor-owned
utilities during the power crisis in 2001.
While the proceeds from the power bonds helped to mitigate an eroding credit
outlook, California still faces significant budget problems, due chiefly to
increased expenditures and revenue shortfalls resulting from income tax
collections that fell below projections. In December 2002, Governor Gray Davis
announced a projected budget deficit for the combined fiscal years 2003-2004 of
$35 billion, the highest in the nation. This announcement prompted both Standard
& Poor's and Fitch to downgrade the state's credit rating to A/A from A+/AA,
respectively. In February 2003, as
2
it became apparent that progress toward closing the budget gap was moving very
slowly, Moody's also downgraded the state to A2 from A1.
Job growth in the state during 2002 was negligible, with gains posted by the
government and wholesale/retail trade sectors largely offset by losses in
manufacturing and business services. Although the state economy continues to
benefit from diversity, we think a solid recovery in California remains largely
dependent on increases in business spending as well as on a strong global
recovery, since exports - mainly to Asia, Canada, and Mexico - represent 12% of
the state's economy. Aided by a generally solid residential real estate market,
the economy of southern California continued to be relatively stable compared
with that of the northern half of the state, where the downturn in technology
continued to restrain economic growth.
At the present time, California appears to be at a low point in the credit
cycle, with the pace of economic improvement to be determined by the pace of
progress in addressing state budget issues. We believe that the current
determination to address the deficit seems to be greater than in the past, but
it may take two to three years for the governor and legislature to find a
resolution for the imbalance between California's revenues and expenditures.
HOW DID THESE FUNDS PERFORM OVER THE TWELVE MONTHS ENDED FEBRUARY 28, 2003?
Individual results for the Funds, as well as for appropriate benchmarks, are
presented in the accompanying table.
-------------------------------------------------------------------------
LEHMAN LIPPER
TOTAL RETURN CALIFORNIA CALIFORNIA
MARKET YIELD ON NAV TOTAL RETURN1 AVERAGE2
-------------------------------------------------------------------------
1 YEAR 1 YEAR 1 YEAR
TAXABLE- ENDED ENDED ENDED
2/28/03 EQUIVALENT3 2/28/03 2/28/03 2/28/03
-------------------------------------------------------------------------
NCA 5.21% 8.20% 6.35% 6.70% 8.10%
-------------------------------------------------------------------------
NCP 6.23% 9.81% 9.18% 6.70% 8.10%
-------------------------------------------------------------------------
NCO 6.35% 10.00% 10.00% 6.70% 8.10%
-------------------------------------------------------------------------
NQC 6.29% 9.91% 8.81% 6.70% 8.10%
-------------------------------------------------------------------------
NVC 6.34% 9.98% 9.07% 6.70% 8.10%
-------------------------------------------------------------------------
NUC 6.48% 10.20% 6.59% 6.70% 8.10%
-------------------------------------------------------------------------
Past performance is not predictive of future results.
For additional information, see the individual Performance Overview for your
Fund in this report.
For the twelve months ended February 28, 2003, four of the six Funds in this
report outperformed the unleveraged, unmanaged Lehman Brothers California
Tax-Free Bond Index and the Lipper peer group average. Much of the
outperformance relative to the Lehman Index is attributable to the fact that
these Nuveen Funds had relatively long durations,4 which helped them perform
well in the generally declining interest rate environment that characterized
much of the twelve-month period.
Two of the Funds did not perform as well. The total return of NCA over the
twelve-month period was affected by its relatively short duration, which was
7.59 as of February 28, 2003. By comparison, the duration of the Lehman Index
was 8.57 as of the same date. Just as relatively long durations can be
beneficial during falling interest rate environments, a Fund with a shorter
duration may not perform as well as longer duration Funds under those market
conditions. The Fund underperformed relative to its Lipper peer group primarily
because, unlike most of the Lipper peer group, it is unleveraged. Leveraging is
a process that can provide additional income for a Fund's common shareholders
and help a Fund's net asset value appreciate when short-term rates are falling -
as they were during much of the twelve-month
1 The total annual returns on common share net asset value (NAV) for these
Nuveen Funds are compared with the total annual return of the Lehman
Brothers California Tax-Exempt Bond Index, an unleveraged index comprising
a broad range of investment-grade California municipal bonds. Results for
the Lehman index do not reflect any expenses.
2 The total returns of the Nuveen California Funds are compared with the
average annualized return of the 25 funds in the Lipper California
Municipal Debt Funds category. Fund and Lipper returns assume reinvestment
of dividends.
3 The taxable-equivalent yield represents the yield that must be earned on a
taxable investment in order to equal the yield of the Nuveen Fund on an
after-tax basis. The taxable-equivalent yield is based on the Fund's market
yield on the indicated date and a combined federal and state income tax
rate of 36.5%.
4 Duration is a measure of a Fund's NAV volatility in reaction to interest
rate movements. Fund duration, also known as leverage-adjusted duration,
takes into account the leveraging process for a Fund and therefore is
generally longer than the duration of the actual portfolio of individual
bonds that make up the Fund. With the exception of NCA, which is
unleveraged, references to duration in this commentary are intended to
indicate Fund duration unless otherwise noted.
3
period. Conversely, leveraging will increase a Fund's net asset value volatility
if short-term interest rates rise.
The performance of NUC was impacted by the poor performance of several holdings
within its portfolio. For example, the Fund held $6.2 million (par value) of
bonds backed by United Air Lines that were issued to support a cargo facility at
Los Angeles International Airport. Over the past year, the market value of most
airline-backed bonds fell, due in part to a decline in passenger volume and in
part to the market's expectation of a bankruptcy filing by United, which took
place in December 2002. NUC's holding depreciated 70% over the twelve-month
period, costing the Fund approximately 45 basis points in total return
performance.
HOW DID THE MARKET ENVIRONMENT AFFECT THE FUNDS' DIVIDENDS AND SHARE PRICES?
NCA's portfolio and income stream remained strong over the reporting period. As
of February 28, 2003, this Fund had provided shareholders with 56 consecutive
months of steady or increasing dividends.
As short-term interest rates remained at historically low levels, the
dividend-paying capabilities of the other five Funds in this report benefited
from their use of leverage. As already noted, leverage is a strategy that can
enhance the dividends paid to common shareholders. The amount of this benefit is
tied in part to the short-term rates the Funds pay their MuniPreferred(R)
shareholders. Low short-term rates can enable the Funds to reduce the amount of
income they pay preferred shareholders, which can leave more earnings to support
common share dividends. During the twelve months ended February 28, 2003, the
short-term interest rate environment enabled us to implement two dividend
increases in both NVC and NUC. NCP, NCO, and NQC all continued to pay steady,
attractive monthly dividends, marking 26 consecutive months of stable dividends
for NCP and NCO and 38 months for NQC.
Over the course of the twelve-month period, the share prices of all six Funds
were affected by a general weakening of bond prices during the fourth quarter of
2002, although we saw some recovery by February 2003. Overall, however, the
share price of each of these Funds finished February 2003 below the level of a
year earlier and all six Funds were trading at discounts to their net asset
values as of February 28, 2003.
WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THE PERIOD ENDED
FEBRUARY 28, 2003?
Over this reporting period, our strategic focus for all of the Funds continued
to be on diversifying the portfolios, enhancing call protection, and positioning
the Funds more defensively in anticipation of potential changes in the interest
rate environment. Given the recent steepness of the municipal yield curve, we
concentrated on finding value in the long-intermediate part of the curve (i.e.,
bonds that mature about15 to 20 years from now). In many cases, bonds in this
part of the curve were offering yields similar to those of longer bonds but, in
our opinion, had less inherent interest rate risk. The purchase of these
long-intermediate bonds helped to moderate the durations of most of the Funds,
making their portfolios less sensitive to interest rate changes while still
allowing them to provide competitive yields and returns. In both NCA and NUC,
which already had relatively short durations, the addition of bonds from the 15-
to 20-year part of the yield curve led to a modest lengthening of their
durations.
Given the slow economic growth over the reporting period, we also were taking
into consideration scenarios in which interest rates could stay relatively low
for a number of months. We believe
4
that structuring the portfolios with bonds offering maturities of 15 to 20 years
helps to prepare the Funds for this eventuality as well.
We sold out of a number of positions in California GOs in March 2001, with the
exception of some shorter-maturity bonds that we believed were not at risk.
Recently, however, we have begun to rebuild small positions in these bonds in
several of the Funds because we believe these bonds represent an opportunity to
add attractive yields at favorable prices.
Over the past year, the heavy issuance in the California market provided us with
increased opportunities to negotiate and obtain the types of bond structures
that we favor, especially as we worked to reduce the Funds' durations against
the risk of rising inflation or interest rates. We also continued to look for
individual issues that we believed would perform well regardless of the future
direction of interest rates. From a sector perspective, our portfolios continued
to hold positions in healthcare bonds, which were the top performing group among
the Lehman revenue sectors for the twelve months ended February 28, 2003. We
believe that credit spreads in this sector have been wider than warranted,
representing an opportunity to purchase bonds that can support and potentially
enhance the Funds' yields. We also maintained positions in public power bonds,
especially those issued by municipal entities with their own power plants and
distribution systems. Such entities have actually benefited from the increased
cost of energy, which we believe could continue to rise through 2003, and these
bonds have performed relatively well. Based on a general improvement in the
credit quality of corporate bonds, the Funds also continue to hold some
industrial development sector securities.
In the prevalent geopolitical and economic climate, we believed that maintaining
strong credit quality remained a vital requirement. As of February 28, 2003,
each of these Funds continued to offer excellent credit quality, with
allocations of bonds rated AAA/U.S. guaranteed and AA ranging from 50% to 82%.
In general, our weightings in higher quality and insured bonds benefited the
performance of these Funds during the past year.
WHAT IS YOUR OUTLOOK FOR THE MUNICIPAL MARKET IN GENERAL AND THE NUVEEN
CALIFORNIA FUNDS IN PARTICULAR?
Our outlook for these markets remains generally positive. We continue to believe
the U.S. economy is slowly heading for an eventual recovery, but one that may be
less robust than some originally anticipated. Inflation and interest rates
should remain relatively low over the near term, although inflation could be
temporarily impacted by war-induced increases in oil prices.
In the municipal market, we think new issuance volume nationally will remain
strong as issuers continue to take advantage of the low rate environment. Given
California's current budget deficit and the state's continued need for spending
on infrastructure and education, we expect to see significant issuance of new
municipal debt in the state. Over coming months, we will continue to closely
monitor the budgetary situation in California to assess the potential effect of
the balancing process on the state's cities, counties, and agencies and to watch
for any further impact on the state's credit rating.
5
Over the next two years, we also will keep a close eye on call exposure. As of
February 28, 2003, the percentage of bonds eligible for calls during 2003 and
2004 ranged from 12% in NCA, NQC and NVC to 14% in NCO and 21% in NUC and NCP.
NUC, which marked its tenth anniversary in November 2001, continues to work its
way through the increased call exposure typically associated with reaching this
point in a Fund's lifecycle. Introduced in 1989, NCP underwent a period of
significant calls during the rising interest rate environment of 1998-1999, at
which time we found the greatest value in discounted bonds with short call
dates. Now that interest rates have declined dramatically, these bonds are at a
premium. While such bonds are now increasingly priced to their call dates, we
think it is unlikely that they will actually be called from NCP's portfolio
because in most cases the bonds' relatively low coupon rates would not make it
economical for issuers to do so. The number of actual calls in each of these
Funds will depend largely on market interest rates over this time, and continued
strong supply in the California market should help us enhance the call positions
of these Funds during this period.
In coming months, we will be closely watching several areas of the market,
including progress toward resolution of the California budget deficit, the
credit environment in the state, and the direction of interest rates and
inflation. We expect the state budget issue to be resolved very slowly, and we
think in the long run this represents an opportunity to add uninsured California
GOs to our portfolios. Because we believe the credit environment could continue
to be difficult, credit will remain a primary focus in selecting specific
issues, with a continued move toward higher quality securities. In our opinion,
the most significant risk to fixed income investments could be a rise in
inflation or interest rates, and we will continue to moderate the Funds'
durations through the purchase of suitable bonds in the long-intermediate part
of the yield curve. In general, we plan to remain focused on strategies that can
add value for our shareholders and provide support for the Funds' long-term
dividend-payment capabilities.
6
Nuveen California Municipal Value Fund, Inc.
Performance
OVERVIEW As of February 28, 2003
NCA
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 50%
A 14%
BBB 21%
NR 14%
BB or Lower 1%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $9.90
--------------------------------------------------
Common Share Net Asset Value $10.26
--------------------------------------------------
Market Yield 5.21%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.44%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.20%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $259,065
--------------------------------------------------
Average Effective Maturity (Years) 18.21
--------------------------------------------------
Average Duration 7.59
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 10/87)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 2.99% 6.35%
--------------------------------------------------
5-Year 5.13% 5.31%
--------------------------------------------------
10-Year 4.32% 5.61%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/Limited 28%
--------------------------------------------------
U.S. Guaranteed 19%
--------------------------------------------------
Tax Obligation/General 9%
--------------------------------------------------
Transportation 9%
--------------------------------------------------
Healthcare 9%
--------------------------------------------------
Bar Chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
3/02 0.043
4/02 0.043
5/02 0.043
6/02 0.043
7/02 0.043
8/02 0.043
9/02 0.043
10/02 0.043
11/02 0.043
12/02 0.043
1/03 0.043
2/03 0.043
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
3/1/02 10.15
10.2
9.88
9.92
9.64
9.66
9.65
9.5
9.69
9.93
10.1
9.88
9.78
9.86
9.99
9.8
9.7
9.8
9.88
10.11
9.85
9.86
9.87
10.03
10.04
9.85
9.95
10.16
10.12
10.03
10.39
10.26
10
9.84
9.69
9.63
9.92
9.57
9.61
9.71
9.82
9.59
9.5
9.52
9.53
9.4
9.5
9.53
9.57
9.9
9.79
9.94
2/28/03 9.9
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 30%. The rate shown for federal and state highlights the added value of
owning shares that are also exempt from state income taxes. It is based on
a combined federal and state income tax rate of 36.5%.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2002 of $0.0122 per share.
7
Nuveen California Performance Plus Municipal Fund, Inc.
Performance
OVERVIEW As of February 28, 2003
NCP
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 57%
AA 17%
A 11%
BBB 12%
NR 3%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $14.35
--------------------------------------------------
Common Share Net Asset Value $15.45
--------------------------------------------------
Market Yield 6.23%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.90%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 9.81%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $200,337
--------------------------------------------------
Average Effective Maturity (Years) 17.81
--------------------------------------------------
Leverage-Adjusted Duration 9.40
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 11/89)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year -0.04% 9.18%
--------------------------------------------------
5-Year 2.10% 6.08%
--------------------------------------------------
10-Year 5.27% 6.30%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Transportation 22%
--------------------------------------------------
Tax Obligation/Limited 18%
--------------------------------------------------
Water and Sewer 14%
--------------------------------------------------
Tax Obligation/General 12%
--------------------------------------------------
Utilities 11%
--------------------------------------------------
Bar Chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
3/02 0.0745
4/02 0.0745
5/02 0.0745
6/02 0.0745
7/02 0.0745
8/02 0.0745
9/02 0.0745
10/02 0.0745
11/02 0.0745
12/02 0.0745
1/03 0.0745
2/03 0.0745
Line Chart:
Share Price Performance
Weekly Closing Price
Past performance is not predictive of future results.
3/1/02 15.51
15.02
14.5
14.4
14.5
14.5
14.66
14.65
14.51
14.66
14.85
14.82
14.85
14.68
14.92
14.95
14.62
14.74
14.89
14.96
14.86
14.82
15
15.12
15
14.88
15
15.08
14.86
15.12
15.23
15.12
14.8
14.15
14.37
14.28
14.5
14.55
14
13.96
14.38
14.15
14.03
14.25
14.28
14.27
14.01
14.03
14.17
14.34
14.35
14.3
2/28/03 14.35
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 30%. The rate shown for federal and state highlights the added value of
owning shares that are also exempt from state income taxes. It is based on
a combined federal and state income tax rate of 36.5%.
2 The Fund also paid shareholders a net ordinary income distribution in
December 2002 of $0.0081 per share.
8
Nuveen California Municipal Market Opportunity Fund, Inc.
Performance
OVERVIEW As of February 28, 2003
NCO
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 65%
AA 17%
A 8%
BBB 5%
NR 3%
BB or Lower 2%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $14.26
--------------------------------------------------
Common Share Net Asset Value $15.46
--------------------------------------------------
Market Yield 6.35%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 9.07%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 10.00%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $126,038
--------------------------------------------------
Average Effective Maturity (Years) 18.95
--------------------------------------------------
Leverage-Adjusted Duration 10.45
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 5/90)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year -2.07% 10.00%
--------------------------------------------------
5-Year 2.62% 5.61%
--------------------------------------------------
10-Year 5.14% 6.33%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/Limited 19%
--------------------------------------------------
Tax Obligation/General 18%
--------------------------------------------------
Transportation 17%
--------------------------------------------------
Utilities 15%
--------------------------------------------------
Water and Sewer 12%
--------------------------------------------------
Bar Chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
3/02 0.0755
4/02 0.0755
5/02 0.0755
6/02 0.0755
7/02 0.0755
8/02 0.0755
9/02 0.0755
10/02 0.0755
11/02 0.0755
12/02 0.0755
1/03 0.0755
2/03 0.0755
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
3/1/02 15.56
15.4
15.05
14.6
14.5
14.5
14.55
14.7
14.66
14.87
15.15
15.08
14.81
14.92
14.94
14.92
14.89
14.94
15
15.05
14.92
15
15.2
15.27
15.3
15.11
15.22
15.4
15.25
15.19
15.44
15.45
15.01
14.6
14.44
14.6
14.7
14.65
14.37
14.24
14.44
14.35
14.3
14.45
14.46
14.3
14.08
14.32
14.37
14.6
14.34
14.33
2/28/03 14.26
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 30%. The rate shown for federal and state highlights the added value of
owning shares that are also exempt from state income taxes. It is based on
a combined federal and state income tax rate of 36.5%.
2 The Fund also paid shareholders a net ordinary income distribution in
December 2002 of $0.0049 per share.
9
Nuveen California Investment Quality Municipal Fund, Inc.
Performance
OVERVIEW As of February 28, 2003
NQC
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 62%
AA 11%
A 11%
BBB 13%
NR 1%
BB or Lower 2%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $14.60
--------------------------------------------------
Common Share Net Asset Value $15.87
--------------------------------------------------
Market Yield 6.29%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.99%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 9.91%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $215,456
--------------------------------------------------
Average Effective Maturity (Years) 19.17
--------------------------------------------------
Leverage-Adjusted Duration 9.92
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 11/90)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year -2.31% 8.81%
--------------------------------------------------
5-Year 3.04% 6.29%
--------------------------------------------------
10-Year 5.49% 6.45%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Transportation 25%
--------------------------------------------------
Tax Obligation/Limited 22%
--------------------------------------------------
U.S. Guaranteed 11%
--------------------------------------------------
Tax Obligation/General 10%
--------------------------------------------------
Healthcare 7%
--------------------------------------------------
Bar Chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
3/02 0.0765
4/02 0.0765
5/02 0.0765
6/02 0.0765
7/02 0.0765
8/02 0.0765
9/02 0.0765
10/02 0.0765
11/02 0.0765
12/02 0.0765
1/03 0.0765
2/03 0.0765
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
3/1/02 15.94
15.61
15.02
14.75
14.74
14.8
14.82
15
15.16
15.29
15.3
15.2
15.14
15.11
15.26
15.2
15.5
15.35
15.63
15.49
15.38
15.3
15.52
15.68
15.7
15.29
15.52
15.51
15.57
15.75
15.85
15.83
15.71
14.97
14.95
15.14
14.94
14.88
14.81
14.74
15
15
14.61
14.93
14.92
14.84
14.57
14.5
14.55
14.65
14.5
14.54
2/28/03 14.6
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 30%. The rate shown for federal and state highlights the added value of
owning shares that are also exempt from state income taxes. It is based on
a combined federal and state income tax rate of 36.5%.
2 The Fund also paid shareholders a capital gains distribution in December
2002 of $0.0186 per share.
10
Nuveen California Select Quality Municipal Fund, Inc.
Performance
OVERVIEW As of February 28, 2003
NVC
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 68%
AA 4%
A 19%
BBB 6%
NR 1%
BB or Lower 2%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $14.77
--------------------------------------------------
Common Share Net Asset Value $15.65
--------------------------------------------------
Market Yield 6.34%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 9.06%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 9.98%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $361,396
--------------------------------------------------
Average Effective Maturity (Years) 20.40
--------------------------------------------------
Leverage-Adjusted Duration 9.22
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 5/91)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 0.51% 9.07%
--------------------------------------------------
5-Year 3.83% 6.35%
--------------------------------------------------
10-Year 6.13% 6.69%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/Limited 20%
--------------------------------------------------
Tax Obligation/General 14%
--------------------------------------------------
Transportation 12%
--------------------------------------------------
Utilities 11%
--------------------------------------------------
Healthcare 11%
--------------------------------------------------
Bar Chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
3/02 0.076
4/02 0.076
5/02 0.076
6/02 0.076
7/02 0.076
8/02 0.076
9/02 0.077
10/02 0.077
11/02 0.077
12/02 0.078
1/03 0.078
2/03 0.078
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
3/1/02 15.68
15.47
14.95
14.28
14.61
14.92
14.81
14.96
14.95
15.04
15.15
15.25
15.25
15.35
15.23
15.03
14.96
15.16
15.23
15.26
15.12
15.09
15.29
15.59
15.33
15.35
15.51
15.46
15.38
15.48
15.57
15.46
15.42
14.55
14.47
14.81
14.75
14.83
14.3
14.32
14.82
14.55
14.55
14.57
14.85
14.6
14.39
14.35
14.45
14.7
14.53
14.69
2/28/03 14.77
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 30%. The rate shown for federal and state highlights the added value of
owning shares that are also exempt from state income taxes. It is based on
a combined federal and state income tax rate of 36.5%.
2 The Fund also paid shareholders a capital gains distribution in December
2002 of $0.0148 per share.
11
Nuveen California Quality Income Municipal Fund, Inc.
Performance
OVERVIEW As of February 28, 2003
NUC
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 63%
AA 11%
A 19%
BBB 1%
NR 2%
BB or Lower 4%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $15.36
--------------------------------------------------
Common Share Net Asset Value $15.61
--------------------------------------------------
Market Yield 6.48%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 9.26%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 10.20%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $342,808
--------------------------------------------------
Average Effective Maturity (Years) 19.00
--------------------------------------------------
Leverage-Adjusted Duration 10.08
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 11/91)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 1.26% 6.59%
--------------------------------------------------
5-Year 4.14% 5.96%
--------------------------------------------------
10-Year 6.88% 6.75%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/Limited 19%
--------------------------------------------------
U.S. Guaranteed 15%
--------------------------------------------------
Education and Civic Organizations 12%
--------------------------------------------------
Tax Obligation/General 10%
--------------------------------------------------
Utilities 10%
--------------------------------------------------
Bar Chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
3/02 0.081
4/02 0.081
5/02 0.081
6/02 0.082
7/02 0.082
8/02 0.082
9/02 0.083
10/02 0.083
11/02 0.083
12/02 0.083
1/03 0.083
2/03 0.083
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
3/1/02 16.3
16.15
15.45
15
15.14
15.36
15.33
15.42
15.39
15.81
15.97
15.83
15.76
15.9
16.03
15.85
15.95
15.9
15.87
16.15
16.05
16.04
16.05
16.11
16.17
16.01
16.14
16.25
16.34
16.33
16.51
16.75
16.4
15.71
15.28
15.66
15.79
15.6
15.29
15.35
15.6
15.51
15.6
15.65
15.86
15.42
15.22
15.2
15.18
15.42
15.4
15.4
2/28/03 15.36
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 30%. The rate shown for federal and state highlights the added value of
owning shares that are also exempt from state income taxes. It is based on
a combined federal and state income tax rate of 36.5%.
2 The Fund also paid shareholders a capital gains distribution in December
2002 of $0.1192 per share.
12
Shareholder
MEETING REPORT
The Shareholder Meeting was held in Chicago, Illinois on November 21, 2002.
NCA NCP
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE DIRECTORS
WAS REACHED AS FOLLOWS:
Preferred Preferred Preferred
Common Common Shares Shares Shares
Shares Shares Series-T Series-W Series-F
====================================================================================================================================
Robert P. Bremner
For -- 11,621,014 1,593 547 1,416
Withhold -- 98,951 16 -- 2
------------------------------------------------------------------------------------------------------------------------------------
Total -- 11,719,965 1,609 547 1,418
====================================================================================================================================
Lawrence H. Brown
For 11,619,314 1,593 547 1,416
Withhold 100,651 16 -- 2
------------------------------------------------------------------------------------------------------------------------------------
Total -- 11,719,965 1,609 547 1,418
====================================================================================================================================
Anne E. Impellizzeri
For 22,900,831 11,613,841 1,593 547 1,416
Withhold 212,016 106,124 16 -- 2
------------------------------------------------------------------------------------------------------------------------------------
Total 23,112,847 11,719,965 1,609 547 1,418
====================================================================================================================================
Peter R. Sawers
For 11,621,514 1,593 547 1,416
Withhold 98,451 16 -- 2
------------------------------------------------------------------------------------------------------------------------------------
Total -- 11,719,965 1,609 547 1,418
====================================================================================================================================
Judith M. Stockdale
For -- 11,618,614 1,593 547 1,416
Withhold -- 101,351 16 -- 2
------------------------------------------------------------------------------------------------------------------------------------
Total -- 11,719,965 1,609 547 1,418
====================================================================================================================================
William J. Schneider
For -- -- 1,593 547 1,416
Withhold -- -- 16 -- 2
------------------------------------------------------------------------------------------------------------------------------------
Total -- -- 1,609 547 1,418
====================================================================================================================================
Timothy R. Schwertfeger
For -- 1,593 547 1,416
Withhold -- 16 -- 2
------------------------------------------------------------------------------------------------------------------------------------
Total -- -- 1,609 547 1,418
====================================================================================================================================
13
Shareholder
MEETING REPORT (continued)
NCO NQC
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE DIRECTORS
WAS REACHED AS FOLLOWS:
Preferred Preferred Preferred Preferred
Common Shares Shares Common Shares Shares
Shares Series-W Series-F Shares Series-M Series-W
------------------------------------------------------------------------------------------------------------------------------------
Robert P. Bremner
For 7,289,498 1,997 381 12,531,376 3,348 812
Withhold 172,829 -- 21 101,928 9 14
------------------------------------------------------------------------------------------------------------------------------------
Total 7,462,327 1,997 402 12,633,304 3,357 826
====================================================================================================================================
Lawrence H. Brown
For 7,277,727 1,997 381 12,531,276 3,348 812
Withhold 184,600 -- 21 102,028 9 14
------------------------------------------------------------------------------------------------------------------------------------
Total 7,462,327 1,997 402 12,633,304 3,357 826
====================================================================================================================================
Anne E. Impellizzeri
For 7,276,417 1,997 381 12,533,676 3,348 812
Withhold 185,910 -- 21 99,628 9 14
------------------------------------------------------------------------------------------------------------------------------------
Total 7,462,327 1,997 402 12,633,304 3,357 826
====================================================================================================================================
Peter R. Sawers
For 7,283,707 1,997 381 12,531,276 3,348 812
Withhold 178,620 -- 21 102,028 9 14
------------------------------------------------------------------------------------------------------------------------------------
Total 7,462,327 1,997 402 12,633,304 3,357 826
====================================================================================================================================
Judith M. Stockdale
For 7,287,582 1,997 381 12,528,962 3,348 812
Withhold 174,745 -- 21 104,342 9 14
------------------------------------------------------------------------------------------------------------------------------------
Total 7,462,327 1,997 402 12,633,304 3,357 826
====================================================================================================================================
William J. Schneider
For -- 1,997 381 -- 3,348 812
Withhold -- -- 21 -- 9 14
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,997 402 -- 3,357 826
====================================================================================================================================
Timothy R. Schwertfeger
For -- 1,997 381 -- 3,348 812
Withhold -- -- 21 -- 9 14
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,997 402 -- 3,357 826
====================================================================================================================================
14
NVC NUC
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE DIRECTORS
WAS REACHED AS FOLLOWS:
Preferred Preferred Preferred Preferred Preferred Preferred
Common Shares Shares Shares Common Shares Shares Shares
Shares Series-T Series-W Series-TH Shares Series-M Series-W Series-F
====================================================================================================================================
Robert P. Bremner
For 21,328,778 2,221 1,630 3,136 20,529,074 1,186 2,848 2,706
Withhold 206,186 -- -- 4 135,988 7 7 1
------------------------------------------------------------------------------------------------------------------------------------
Total 21,534,964 2,221 1,630 3,140 20,665,062 1,193 2,855 2,707
====================================================================================================================================
Lawrence H. Brown
For 21,318,046 2,221 1,630 3,136 20,530,817 1,186 2,848 2,706
Withhold 216,918 -- -- 4 134,245 7 7 1
------------------------------------------------------------------------------------------------------------------------------------
Total 21,534,964 2,221 1,630 3,140 20,665,062 1,193 2,855 2,707
====================================================================================================================================
Anne E. Impellizzeri
For 21,310,866 2,221 1,630 3,136 20,533,795 1,186 2,848 2,706
Withhold 224,098 -- -- 4 131,267 7 7 1
------------------------------------------------------------------------------------------------------------------------------------
Total 21,534,964 2,221 1,630 3,140 20,665,062 1,193 2,855 2,707
====================================================================================================================================
Peter R. Sawers
For 21,320,012 2,221 1,630 3,136 20,538,536 1,186 2,848 2,706
Withhold 214,952 -- -- 4 126,526 7 7 1
------------------------------------------------------------------------------------------------------------------------------------
Total 21,534,964 2,221 1,630 3,140 20,665,062 1,193 2,855 2,707
====================================================================================================================================
Judith M. Stockdale
For 21,326,980 2,221 1,630 3,136 20,530,150 1,186 2,848 2,706
Withhold 207,984 -- -- 4 134,912 7 7 1
------------------------------------------------------------------------------------------------------------------------------------
Total 21,534,964 2,221 1,630 3,140 20,665,062 1,193 2,855 2,707
====================================================================================================================================
William J. Schneider
For -- 2,221 1,630 3,136 -- 1,186 2,848 2,706
Withhold -- -- -- 4 -- 7 7 1
------------------------------------------------------------------------------------------------------------------------------------
Total -- 2,221 1,630 3,140 -- 1,193 2,855 2,707
====================================================================================================================================
Timothy R. Schwertfeger
For -- 2,221 1,630 3,136 -- 1,186 2,848 2,706
Withhold -- -- -- 4 -- 7 7 1
------------------------------------------------------------------------------------------------------------------------------------
Total -- 2,221 1,630 3,140 -- 1,193 2,855 2,707
====================================================================================================================================
15
Nuveen California Municipal Value Fund, Inc. (NCA)
Portfolio of
INVESTMENTS February 28, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 3.5%
$ 7,400 California County Tobacco Securitization Agency, Tobacco Settlement 6/12 at 100.00 A1 $ 6,690,488
Asset-Backed Bonds, Sonoma County Tobacco Funding Corporation,
Series 2002B, 5.500%, 6/01/30
2,500 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 A1 2,419,025
Tobacco Settlement Asset-Backed Bonds, Series 2003-A1,
6.250%, 6/01/33
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 0.6%
1,500 California Statewide Communities Development Authority, 12/06 at 105.00 N/R 1,519,005
Certificates of Participation, San Diego Space and Science
Foundation, Series 1996, 7.500%, 12/01/26
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 8.7%
1,000 City of Arcadia, California, Hospital Revenue Bonds, Methodist 5/03 at 102.00 BBB+ 1,021,680
Hospital of Southern California, Series 1992, 6.500%, 11/15/12
12,000 California Health Facilities Financing Authority, Revenue Bonds, 12/09 at 101.00 A3 12,743,400
Cedars-Sinai Medical Center, Series 1999A, 6.125%, 12/01/30
5,000 Central California Joint Powers Health Financing Authority, 2/10 at 101.00 BBB+ 5,112,300
Certificates of Participation, Community Hospitals of Central
California Obligated Group Project, Series 2000, 6.000%, 2/01/30
2,190 City of Pasadena, California, Insured Health Facilities Revenue 6/03 at 100.00 A 2,202,220
Bonds, Pacific Clinics, Series 1988A, 8.200%, 6/01/18
1,440 City of Stockton, California, Health Facility Revenue Bonds, 12/07 at 102.00 BBB+ 1,573,099
Dameron Hospital Association, 1997 Series A, 5.300%, 12/01/08
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 6.8%
9,100 ABAG Finance Authority for Nonprofit Corporations, California, No Opt. Call BBB- 9,751,742
Multifamily Housing Revenue Refunding Bonds, United
Dominion/2000 Post Apartments, 2000 Series B,
6.400%, 8/15/30 (Alternative Minimum Tax) (Mandatory
put 8/15/08)
2,630 California Statewide Communities Development Authority, 7/09 at 102.00 N/R 2,476,198
Multifamily Housing Revenue Bonds, Harbor City Lights
Project, Series 1999Y, 6.650%, 7/01/39 (Alternative
Minimum Tax)
5,000 California Statewide Communities Development Authority, No Opt. Call BBB+ 5,373,850
Multifamily Housing Refunding Bonds, Archstone Pelican Point
Apartments, Issue 1999H, Archstone Communities Trust,
5.300%, 6/01/29 (Mandatory put 6/01/08)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 1.8%
2,200 California Housing Finance Agency, Home Mortgage Revenue Bonds, 2/06 at 102.00 AAA 2,320,450
1995 Series M, 6.050%, 8/01/15 (Alternative Minimum Tax) -
MBIA Insured
215 California Rural Home Mortgage Finance Authority, Single Family No Opt. Call Aaa 234,683
Mortgage Revenue Bonds, Mortgage- Backed Securities Program,
1993 Issue A Series 2, 7.950%, 12/01/24 (Alternative Minimum Tax)
1,880 California Rural Home Mortgage Finance Authority, Single Family No Opt. Call AAA 2,019,195
Mortgage Revenue Bonds, Mortgage-Backed Securities Program,
1997 Series D, 6.700%, 5/01/29 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 4.1%
2,720 ABAG Finance Authority for Non-Profit Corporations, California, 10/07 at 102.00 BB+ 2,556,936
American Baptist Homes of the West Facilities Project,
Series 1997A, Certificates of Participation, 5.750%, 10/01/17
5,945 California Statewide Communities Development Authority, 4/09 at 101.00 BBB 6,049,216
Certificates of Participation, Internext Group, 5.375%, 4/01/17
2,000 Riverside County Public Financing Authority, California, 5/09 at 101.00 BBB- 2,027,760
Certificates of Participation, Air Force Village West, Inc.,
5.750%, 5/15/19
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 9.2%
7,500 State of California, Various Purpose General Obligation Bonds, 3/10 at 101.00 AAA 8,047,575
5.750%, 3/01/27 - MBIA Insured
16
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 2,500 State of California, General Obligation Bonds, Series 2002 2/12 at 100.00 A $ 2,520,275
Refunding, 5.250%, 2/01/30
2,250 Long Beach Unified School District, Los Angeles County, 8/10 at 101.00 Aaa 2,276,910
California, General Obligation Bonds, Election of 1999,
Series 2002D, 5.000%, 8/01/31 - FSA Insured
Los Angeles Unified School District, Los Angeles County,
California, General Obligation Bonds, Series 2003A:
750 5.250%, 7/01/20 - FSA Insured (WI, settling 3/05/03) 7/13 at 100.00 AAA 809,258
3,200 5.000%, 7/01/22 - FSA Insured (WI, settling 3/05/03) 7/13 at 100.00 AAA 3,329,600
1,845 Oakland Unified School District, Alameda County, California, 8/08 at 101.00 AAA 1,914,390
General Obligation Bonds, Series 2001, 5.125%, 8/01/21 -
FSA Insured
1,970 Pleasant Valley School District, Ventura County, California, No Opt. Call AAA 2,315,971
General Obligation Bonds, Series 2002A Refunding,
5.850%, 2/01/23 - MBIA Insured
2,325 Temecula Valley Unified School District, County of Riverside, 9/06 at 102.00 AAA 2,675,912
California, 1990 General Obligation Bonds, Series F,
6.000%, 9/01/20 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 27.7%
4,500 Bonita Canyon Public Facilities Financing Authority, California, 3/03 at 103.00 N/R 4,426,335
Community Facilities District No. 98-1 Special Tax Bonds,
Series 1998, 5.375%, 9/01/28
9,000 State Public Works Board of California, Lease Revenue Bonds, 1/06 at 100.00 AAA 9,586,800
Department of Corrections, 1996 Series A (California Substance
Abuse Treatment Facility and State Prison at Corcoran -
(Corcoran II)), 5.250%, 1/01/21 - AMBAC Insured
4,000 State Public Works Board of California, Lease Revenue Bonds, 11/09 at 101.00 AAA 4,301,800
California Department of Health Services, 1999 Series A,
Richmond Laboratory Project, 5.750%, 11/01/24 - MBIA Insured
6,000 Community Facilities District No. 98-2 of the Capistrano Unified 9/09 at 102.00 N/R 5,995,920
School District, Ladera, California, Series 1999 Special
Tax Bonds, 5.750%, 9/01/29
3,995 Chino Unified School District, California, Certificates of 9/05 at 102.00 AAA 4,480,033
Participation, 1995 Master Lease Program,
6.000%, 9/01/20 - FSA Insured
2,800 Community Development Commission of the City of Commerce, 8/07 at 102.00 N/R 2,860,368
California, Redevelopment Project No. 1, Subordinate Lien Tax
Allocation Refunding Bonds, Series 1997B, 6.000%, 8/01/21
2,000 Redevelopment Agency of the City of Duarte, California, 9/07 at 102.00 N/R 2,185,120
Amended Davis Addition Project Area, 1997 Tax Allocation
Refunding Bonds, 6.700%, 9/01/14
4,710 City of Milpitas, Santa Clara County, California, Limited 3/03 at 103.00 N/R 4,869,952
Obligation Improvement Bonds, Local Improvement District
No. 20, 1998 Series A, 5.650%, 9/02/13
420 Redevelopment Agency of the City of Oakland, California, Central 3/13 at 100.00 AAA 468,422
District Redevelopment Project,Subordinate Lien Tax Allocation
Bonds, Series 2003, 5.500%, 9/01/18 - FGIC Insured
8,000 Palmdale Elementary School District, Los Angeles County, 8/09 at 101.00 AAA 8,904,160
California, Community Facilities District No. 90-1, Special Tax
Bonds, Series 1999, 5.800%, 8/01/29 - FSA Insured
3,300 Puerto Rico Highway and Transportation Authority, Transportation 7/12 at 100.00 A 3,412,398
Revenue Bonds, Series D, 5.375%, 7/01/36
490 County of Riverside, California, Mobile Home Park Revenue 4/03 at 100.00 N/R 433,719
Bonds, Bravo Mobile Home Park Project, Subordinate Lien,
Series 1999B, 6.500%, 3/20/29
1,440 San Dimas Housing Authority, California, Mobile Home Park 7/08 at 102.00 N/R 1,394,885
Revenue Bonds, Charter Oak Mobile Home Estates
Acquisition Project, Series 1998A, 5.700%, 7/01/28
3,000 Redevelopment Agency of the City of San Jose, California, 2/04 at 102.00 AAA 3,053,340
Merged Area Redevelopment Project, Tax Allocation Bonds,
Series 1993, 5.000%, 8/01/20 - MBIA Insured
2,750 City of San Jose Financing Authority, California, Lease Revenue 9/11 at 100.00 AAA 2,880,955
Bonds, Series 2001F, Convention Center Project Refunding,
5.000%, 9/01/20 - MBIA Insured
1,700 Shafter Joint Powers Financing Authority, California, Lease 1/07 at 101.00 A 1,847,237
Revenue Bonds, 1997 Series A, Community Correctional Facility
Acquisition Project, 5.950%, 1/01/11
1,000 City of Stockton, California, Mello-Roos Revenue Bonds, 8/05 at 102.00 N/R 1,064,730
Series 1997A, Community Facilities District No. 90-2,
Brookside Estates, 5.850%, 8/01/09
3,470 Upland Community Redevelopment Agency, California, Upland 4/03 at 100.50 N/R 3,496,476
Redevelopment Project, Subordinated Tax Allocation Notes,
Low and Moderate Income Housing Fund Projects, Issue
of 1999, 6.100%, 10/01/04
17
Nuveen California Municipal Value Fund, Inc. (NCA) (continued)
Portfolio of INVESTMENTS February 28, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 3,000 Virgin Islands Public Finance Authority, Revenue Bonds, Virgin 10/10 at 101.00 BBB- $ 3,332,940
Islands Gross Receipts Taxes Loan Notes, Series 1999A,
6.500%, 10/01/24
2,570 Vista Joint Powers Financing Authority, California, Special Tax 9/05 at 102.00 N/R 2,618,265
Leases Revenue Refunding Bonds, 1997 Series A,
5.875%, 9/01/20
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 9.1%
20,000 Foothill/Eastern Transportation Corridor Agency, California, 1/14 at 101.00 BBB- 13,990,800
Toll Road Refunding Revenue Bonds, Series 1999,
0.000%, 1/15/27
1,250 City of Fresno, California, Airport Revenue Bonds, 7/10 at 101.00 AAA 1,319,587
Series 2000A, 5.500%, 7/01/30 - FSA Insured
3,000 Port of Oakland, California, Revenue Bonds, 1997 Series G, 11/07 at 102.00 AAA 3,094,380
5.375%, 11/01/25 (Alternative Minimum Tax) - MBIA Insured
5,000 Airports Commission of the City and County of San Francisco, 5/06 at 102.00 AAA 5,204,100
California, San Francisco International Airport, Second Series
Revenue Bonds, Issue 10A, 5.625%, 5/01/21 (Alternative
Minimum Tax) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 18.6%
3,115 California Educational Facilities Authority, Revenue Bonds, 6/10 at 101.00 Baa3*** 3,842,820
Pooled College and University Projects, 2000 Series C,
6.750%, 6/01/30
2,065 County of Contra Costa, California, 1988 Home Mortgage Revenue No Opt. Call AAA 2,981,571
Bonds, GNMA Mortgage-Backed Securities Program,
8.250%, 6/01/21 (Alternative Minimum Tax)
2,500 Community Redevelopment Agency of the City of Los Angeles, 7/03 at 100.00 BBB*** 2,528,925
California, Central Business District Redevelopment Project,
Tax Allocation Refunding Bonds, Series G, 6.750%, 7/01/10
3,000 Los Angeles Convention and Exhibition Center Authority, 12/05 at 100.00 AAA 3,634,920
California, Certificates of Participation, Series 1985,
9.000%, 12/01/20 (Pre-refunded to 12/01/05)
5,000 Merced Irrigation District, California, Subordinated Revenue 3/08 at 102.00 AAA 6,234,500
Certificates of Participation, Series 2000, Electric System
Project, 7.450%, 3/01/18 (Pre-refunded to 3/01/08)
4,000 Modesto Irrigation District Financing Authority, California, 9/05 at 102.00 AAA 4,536,200
Domestic Water Project Revenue Bonds, Series 1995C,
5.750%, 9/01/22 (Pre-refunded to 9/01/05) - AMBAC Insured
8,565 City of Palmdale, California, Single Family Mortgage Revenue No Opt. Call AAA 4,398,128
Bonds, GNMA Mortgage-Backed Securities Program,
Series 1988A, 0.000%, 3/01/17
5,190 Sacramento County Sanitation Districts Financing Authority, 12/18 at 100.00 Aaa 5,272,106
California, 1993 Revenue Bonds, 4.750%, 12/01/23
(Pre-refunded to 12/01/18)
20,415 County of San Bernardino, California, Single Family Mortgage No Opt. Call AAA 8,147,626
Revenue Bonds, GNMA Mortgage-Backed Securities,
1988 Series A, 0.000%, 9/01/21 (Alternative Minimum Tax)
5,925 Airports Commission of the City and County of San Francisco, 5/05 at 101.00 AAA 6,606,494
California, San Francisco International Airport, Second Series
Revenue Bonds, Issue 11, 6.200%, 5/01/19 (Alternative
Minimum Tax) (Pre-refunded to 5/01/05) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 4.2%
4,500 California Department of Water Resources, Power Supply Revenue 5/12 at 101.00 A3 4,676,985
Bonds, Series 2002A, 5.125%, 5/01/18
3,000 California Statewide Communities Development Authority, 12/04 at 102.00 N/R 2,533,740
Certificates of Participation, Rio Bravo Fresno Project,
Series 1999A Refunding, 6.300%, 12/01/18
3,500 Puerto Rico Industrial, Tourist, Educational, Medical, and 6/10 at 101.00 Baa2 3,630,025
Environmental Control Facilities Financing Authority, Cogeneration
Facility Revenue Bonds, 2000 Series A, 6.625%, 6/01/26
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 3.3%
15 Azusa Public Financing Authority, California, Revenue Bonds, 7/03 at 102.00 AAA 15,136
Series 1993A, City of Azusa Water System Acquisition
Project, 5.000%, 7/01/23 - FGIC Insured
5,000 Castaic Lake Water Agency, California, Refunding Revenue 8/04 at 102.00 AAA 5,432,700
Certificates of Participation, Water System Improvement
Projects, Series 1994A, 6.300%, 8/01/20 - MBIA Insured
750 Livermore-Amador Valley Water Management Agency, California, 8/11 at 100.00 AAA 758,970
Sewer Revenue Bonds, Series A, 5.000%, 8/01/31 - AMBAC Insured
18
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 2,220 South Placer Wastewater Authority, California, Wastewater 11/10 at 101.00 AAA $ 2,327,291
Revenue Bonds, Series 2000A, 5.000%, 11/01/20 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 263,215 Total Long-Term Investments (cost $233,192,008) - 97.6% 252,761,997
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.4% 6,302,700
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $259,064,697
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares.
* 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.
** Ratings: Using the higher of Standard & Poor's or Moody's
rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of principal and
interest. Such securities are normally considered to be
equivalent to AAA rated securities.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
19
Nuveen California Performance Plus Municipal Fund, Inc. (NCP)
Portfolio of
INVESTMENTS February 28, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 5.5%
$ 8,000 California County Tobacco Securitization Agency, Tobacco Settlement 6/12 at 100.00 A1 $ 8,034,480
Asset-Backed Bonds, Sonoma County Tobacco Funding
Corporation, Series 2002B, 5.125%, 6/01/20
3,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 A1 2,902,830
Tobacco Settlement Asset-Backed Bonds, Series 2003-A1,
6.250%, 6/01/33
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 2.5%
4,730 Trustees of the California State University, Systemwide Revenue 11/12 at 100.00 AAA 5,014,510
Bonds, Series 2002A, 5.000%, 11/01/19 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 8.7%
2,780 California Health Facilities Financing Authority, Insured Health 5/03 at 102.00 A 2,842,272
Facility Revenue Refunding Bonds, Valley Memorial Hospital,
Series 1993A, 6.000%, 5/01/17
5,500 California Statewide Communities Development Authority, 7/07 at 102.00 AA- 5,661,480
Certificates of Participation, Series 1997, St. Joseph Health
System Refunding, 5.125%, 7/01/17
2,000 California Statewide Communities Development Authority, No Opt. Call AAA 2,074,520
Revenue Refunding Bonds, Sherman Oaks Project, Series 1998A,
5.000%, 8/01/22 - AMBAC Insured
Central Joint Powers Health Financing Authority, Certificates of
Participation, Series 1993, Community Hospital of Central
California:
2,500 5.250%, 2/01/13 8/03 at 102.00 Baa1 2,528,100
4,665 5.000%, 2/01/23 8/03 at 100.00 Baa1 4,365,834
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 5.8%
5,000 California Statewide Communities Development Authority, 7/08 at 101.00 BBB 5,414,950
Apartment Development Revenue Refunding Bonds, Irvine
Apartment Communities, L.P., Series 1998A, 4.900%, 5/15/25
(Mandatory put 5/15/08)
3,915 City of Los Angeles, California, Multifamily Housing Revenue 3/07 at 102.00 AAA 4,120,616
Bonds, GNMA Collateralized - Ridgecroft Apartments Project,
Series 1997E, 6.250%, 9/20/39 (Alternative Minimum Tax)
2,145 Community Development Commission of the County of 5/03 at 100.00 Aaa 2,150,770
Los Angeles, California, Mortgage Revenue Refunding Bonds,
Series 1993, FHA-Insured Mortgage Loans, Los Tomas
Apartments - Section 8 Assisted Project, 6.500%, 7/15/23
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 18.9%
6,435 State of California, Veterans General Obligation Bonds, 12/05 at 101.00 AA- 6,618,912
Series BT, 5.375%, 12/01/16 (Alternative Minimum Tax)
2,500 Hawthorne School District, Los Angeles County, California, 11/08 at 102.00 AAA 2,680,250
General Obligation Bonds, 1997 Election, Series A,
5.500%, 5/01/22 - FGIC Insured
8,000 Los Angeles Unified School District, Los Angeles County, 7/10 at 100.00 AAA 8,511,200
California, General Obligation Bonds, Election of 1997,
Series D, 5.375%, 7/01/25 - FGIC Insured
6,000 Los Angeles Unified School District, Los Angeles County, 7/13 at 100.00 AAA 6,243,000
California, General Obligation Bonds, Series 2003A,
5.000%, 7/01/22 - FSA Insured (WI, settling 3/05/03)
2,575 Oxnard School District, Ventura County, California, General 2/22 at 103.00 AAA 2,941,654
Obligation Bonds, Series 2001A Refunding,
5.750%, 8/01/30 - MBIA Insured
6,000 Commonwealth of Puerto Rico, Bond Payment Obligation Public No Opt. Call AAA 7,525,620
Improvement Bonds, Series 1993, 7.000%, 7/01/10 -
MBIA Insured
3,000 San Jose-Evergreen Community College District, Santa Clara 9/10 at 100.00 AAA 3,298,260
County, California, Election of 1998, General Obligation Bonds,
Series B, 5.600%, 9/01/24 - FGIC Insured
20
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 26.9%
$ 5,045 State Public Works Board of California, Lease Revenue Bonds, 3/12 at 100.00 AAA $ 5,316,926
Department of Corrections, Series 2002A, 5.250%, 3/01/22 -
AMBAC Insured
2,500 Corona Public Financing Authority, California, Superior Lien 9/09 at 102.00 AAA 2,619,050
Revenue Bonds, Series 1999A, 5.000%, 9/01/20 - FSA Insured
2,000 Cudahy Redevelopment Agency, California, Cudahy 9/03 at 102.00 BBB 2,054,140
Redevelopment Project, Tax Allocation Refunding Bonds,
Series 1994A, 6.700%, 9/01/24
1,585 Fruitvale School District, California, Certificates of Participation, 6/03 at 100.00 N/R 1,593,179
1990 Improvement Project, 7.875%, 6/01/04
5,000 Los Angeles County Metropolitan Transportation Authority, 7/03 at 100.00 AAA 5,008,900
California, Proposition A Sales Tax Revenue Refunding Bonds,
Series 1993-A, 5.000%, 7/01/21 - FGIC Insured
4,000 Los Angeles County Metropolitan Transportation Authority, No Opt. Call AAA 4,605,840
California, Proposition C Sales Tax Revenue Bonds, Second
Senior Series 1998A Refunding, 5.500%, 7/01/09 -
AMBAC Insured
2,000 Redevelopment Agency of the City of Oakland, California, 3/13 at 100.00 AAA 2,274,620
Central District Redevelopment Project, Subordinate Lien Tax
Allocation Bonds, Series 2003, 5.500%, 9/01/15 - FGIC Insured
8,800 County of Orange, California, 1996 Recovery Certificates of 7/06 at 102.00 AAA 10,092,456
Participation, Series A, 6.000%, 7/01/26 - MBIA Insured
2,545 Pleasanton Joint Powers Financing Authority, California, 9/03 at 102.00 Baa1 2,651,203
Reassessment Revenue Bonds, 1993 Series A, 6.000%, 9/02/05
4,000 Puerto Rico Highway and Transportation Authority, Transportation 7/12 at 100.00 A 4,136,240
Revenue Bonds, Series D, 5.375%, 7/01/36
6,470 San Leandro Public Financing Authority, California, Certificates 6/03 at 102.00 A+ 6,617,775
of Participation, Seismic Retrofit Financing Project, Series 1993,
5.950%, 6/01/23
San Marcos Unified School District, California, Community
Facilities District No. 5, Rancho Carillo, Special Tax Bonds,
Series 1999:
1,000 5.500%, 9/01/18 3/03 at 103.00 N/R 1,000,570
1,750 5.600%, 9/01/29 3/03 at 103.00 N/R 1,709,155
1,000 City of Stockton, California, Mello-Roos Revenue Bonds, 9/06 at 102.00 Baa1 1,060,980
Series 1998A, Community Facilities District No. 1, Weston
Ranch, 5.800%, 9/01/14
1,265 Redevelopment Agency of the City of Suisun City, County 10/03 at 102.00 AAA 1,323,190
of Solano, California, Suisun City Redevelopment Project,
1993 Tax Allocation Refunding Bonds, 5.900%, 10/01/23 -
MBIA Insured
1,750 Taft Public Financing Authority, California, Lease Revenue 1/07 at 101.00 A 1,911,420
Bonds, 1997 Series A, Community Correctional Facility
Acquisition Project, 5.950%, 1/01/11
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 33.8%
Foothill/Eastern Transportation Corridor Agency, California, Toll
Road Refunding Revenue Bonds, Series 1999:
5,600 0.000%, 1/15/28 1/14 at 101.00 BBB- 3,881,416
20,000 0.000%, 1/15/29 1/14 at 101.00 BBB- 13,846,200
6,000 Foothill/Eastern Transportation Corridor Agency, California, 1/10 at 100.00 AAA 6,046,980
Toll Road Revenue Bonds, Series 1995A, 5.000%, 1/01/35 -
MBIA Insured
City of Long Beach, California, Harbor Revenue Bonds,
Series 2000A:
2,740 5.750%, 5/15/14 (Alternative Minimum Tax) 5/10 at 101.00 AA- 3,051,922
11,885 5.750%, 5/15/15 (Alternative Minimum Tax) 5/10 at 101.00 AA- 13,174,998
8,550 Port of Oakland, California, Revenue Bonds, 2000 Series K, 5/10 at 100.00 AAA 9,260,676
5.750%, 11/01/29 (Alternative Minimum Tax) - FGIC Insured
1,400 Port of Oakland, California, Revenue Bonds, Series 2002M, 11/12 at 100.00 AAA 1,507,142
5.250%, 11/01/20 - FGIC Insured
14,000 Airports Commission of the City and County of San Francisco, 5/10 at 101.00 AAA 14,657,160
California, San Francisco International Airport, Second Series
Revenue Bonds, Issue 25, 5.500%, 5/01/24 (Alternative
Minimum Tax) - FSA Insured
2,000 Airports Commission of the City and County of San Francisco, 5/11 at 100.00 AAA 2,057,300
California, San Francisco International Airport, Second Series
Revenue Refunding Bonds, Issue 27B, 5.000%, 5/01/23 -
FGIC Insured
21
Nuveen California Performance Plus Municipal Fund, Inc. (NCP) (continued)
Portfolio of INVESTMENTS February 28, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 11.4%
$ 4,960 State of California, Various Purpose General Obligation Bonds, 3/05 at 101.00 A*** $ 5,470,136
5.750%, 3/01/14 (Pre-refunded to 3/01/05)
3,000 California Statewide Communities Development Authority, No Opt. Call N/R*** 3,279,330
Certificates of Participation, Insured Hospital Revenue Refunding
Bonds, Triad Healthcare, Series 1992, 6.250%, 8/01/06
4,000 County of Contra Costa, California, 1988 Home Mortgage No Opt. Call AAA 5,775,440
Revenue Bonds, GNMA Mortgage-Backed Securities Program,
8.250%, 6/01/21 (Alternative Minimum Tax)
1,200 Los Angeles Unified School District, California, General Obligation 7/10 at 100.00 AAA 1,415,664
Bonds, Election of 1997, Series D, 5.625%, 7/01/14
(Pre-refunded to 7/01/10)
5,850 Commonwealth of Puerto Rico, General Obligation Public 7/10 at 100.00 AAA 6,843,915
Improvement Bonds of 2000, 5.750%, 7/01/26 (Pre-refunded
to 7/01/10) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 16.7%
1,310 California Pollution Control Financing Authority, Solid Waste 7/07 at 102.00 N/R 186,476
Disposal Revenue Bonds, CanFibre of Riverside Project,
Tax-Exempt Series 1997A, 9.000%, 7/01/19 (Alternative
Minimum Tax)#
5,250 California Department of Water Resources, Power Supply Revenue 5/12 at 101.00 A3 5,456,483
Bonds, Series 2002A, 5.125%, 5/01/18
5,160 California Statewide Communities Development Authority, 12/04 at 102.00 N/R 4,358,033
Certificates of Participation, Rio Bravo Fresno Project,
Series 1999A Refunding, 6.300%, 12/01/18
11,000 City of Chula Vista, California, Industrial Development Revenue 6/03 at 102.00 AAA 11,265,760
Bonds, San Diego Gas and Electric Company, 1992 Series A,
6.400%, 12/01/27 (Alternative Minimum Tax) - AMBAC Insured
10,450 Orange County Public Financing Authority, California, Waste No Opt. Call Aaa 11,685,086
Management System Refunding Revenue Bonds, Series 1997,
5.250%, 12/01/13 (Alternative Minimum Tax) - AMBAC Insured
500 Sacramento Municipal Utility District, California, Electric Revenue 8/12 at 100.00 AAA 531,605
Bonds, 2002 Series Q Refunding, 5.250%, 8/15/22 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 21.5%
Department of Water and Power of the City of Los Angeles,
California, Water Works Refunding Revenue Bonds, Second Issue of
1993:
3,000 4.500%, 5/15/13 5/03 at 102.00 AA 3,044,340
4,270 4.500%, 5/15/18 5/03 at 102.00 AA 4,294,339
3,000 Los Angeles County Sanitation Districts Financing Authority, 10/03 at 100.00 AA 3,006,180
California, Capital Projects Revenue Bonds, 1993 Series A, Senior
Ad Valorem Obligation Bonds, 5.000%, 10/01/23
5,500 Metropolitan Water District of Southern California, Water 7/06 at 100.00 AAA 5,530,910
Revenue Refunding Bonds, 1996 Series B,
4.750%, 7/01/21 - MBIA Insured
5,000 Orange County Water District, California, Revenue Certificates 8/03 at 100.00 AA+ 5,018,350
of Participation, Series 1993A, 5.000%, 8/15/18
2,500 Pajaro Valley Water Management Agency, California, Revenue 3/09 at 101.00 AAA 2,770,100
Certificates of Participation, Series 1999A, 5.750%, 3/01/29 -
AMBAC Insured
5,985 Sacramento County Sanitation Districts Financing Authority, 12/10 at 101.00 AA 6,690,332
California, Revenue Bonds, Series 2000A, Sacramento Regional
County Sanitation District, 5.250%, 12/01/12
4,000 Sacramento County Sanitation Districts Financing Authority, No Opt. Call AAA 4,599,720
California, Revenue Refunding Bonds, Series 2001,
5.500%, 12/01/20 - AMBAC Insured
4,585 City of Santa Maria, California, Water and Wastewater Revenue 8/12 at 101.00 AAA 4,393,576
Bonds, Subordinate Certificates of Participation, Series 1997A,
0.000%, 8/01/27 - AMBAC Insured
22
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 1,700 South Gate Utility Authority, California, Subordinate Revenue 10/11 at 102.00 AAA $ 1,773,100
Bonds, 2001 Series, Water and Sewer System Projects,
5.000%, 10/01/22 - FGIC Insured
1,965 South Placer Wastewater Authority, California, Wastewater 11/10 at 101.00 AAA 2,043,970
Revenue Bonds, Series 2000A, 5.250%, 11/01/27 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 295,815 Total Long-Term Investments (cost $281,638,392) - 151.7% 303,821,541
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.2% 2,515,334
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.9)% (106,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 200,336,875
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares.
* 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.
** Ratings: Using the higher of Standard & Poor's or Moody's
rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of principal and
interest. Such securities are normally considered to be
equivalent to AAA rated securities.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
# Non-income producing security. On January 1, 2002, CFR
Holdings, Inc. (an entity formed by Nuveen for the benefit
of the Nuveen Funds owning various interests in CanFibre of
Riverside) took possession of CanFibre of Riverside assets
on behalf of the various Nuveen Funds. CFR Holdings, Inc.,
has determined that a sale of the facility is in the best
interest of shareholders and is proceeding accordingly.
See accompanying notes to financial statements.
23
Nuveen California Municipal Market Opportunity Fund, Inc. (NCO)
Portfolio of
INVESTMENTS February 28, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 6.0%
$ 5,620 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 A1 $ 5,644,222
Settlement Asset-Backed Bonds, Sonoma County Tobacco
Funding Corporation, Series 2002B, 5.125%, 6/01/20
2,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 A1 1,935,220
Tobacco Settlement Asset-Backed Bonds, Series 2003-A1,
6.250%, 6/01/33
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 6.9%
1,530 Regents of the University of California, 2002 Series A, 1/10 at 101.00 Aa2 1,618,771
Certificates of Participation, San Diego Campus and
Sacramento Projects, 5.250%, 1/01/20
6,580 Regents of the University of California, Multiple Purpose 9/08 at 101.00 AA 7,075,211
Project Revenue Bonds, Series K, 5.000%, 9/01/13
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 8.6%
1,000 California Statewide Communities Development Authority, No Opt. Call AAA 1,037,260
Revenue Refunding Bonds, Sherman Oaks Project,
Series 1998A, 5.000%, 8/01/22 - AMBAC Insured
5,930 Central Joint Powers Health Financing Authority, California, 8/03 at 100.00 Baa1 5,549,709
Certificates of Participation, Series 1993, Community Hospital of
Central California, 5.000%, 2/01/23
City of Loma Linda, California, Hospital Revenue Bonds, Loma
Linda University Medical Center Project, Series 1993-A:
1,330 5.750%, 12/01/03 No Opt. Call BB- 1,328,497
3,000 6.500%, 12/01/18 12/03 at 102.00 BB- 2,971,650
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.2%
1,550 Housing Authority of the County of San Bernardino, California, No Opt. Call A3 1,569,794
Multifamily Housing Revenue Refunding Bonds, Equity
Residential/Redlands Lawn and Tennis Apartments,
Issue 1999A, 5.200%, 6/15/29 (Mandatory put 6/15/09)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 28.3%
4,950 State of California, Various Purpose General Obligation Bonds, 3/10 at 101.00 AAA 5,311,400
5.750%, 3/01/27 - MBIA Insured
5,000 State of California, Veterans General Obligation Bonds, Series BT, 12/05 at 101.00 AA- 5,142,900
5.375%, 12/01/16 (Alternative Minimum Tax)
5,000 Los Angeles Unified School District, California, General Obligation 7/10 at 100.00 AAA 5,319,500
Bonds, Election of 1997, Series D, 5.375%, 7/01/25 -
FGIC Insured
4,000 Los Angeles Unified School District, Los Angeles County, 7/13 at 100.00 AAA 4,162,000
California, General Obligation Bonds, Series 2003A,
5.000%, 7/01/22 - FSA Insured (WI, settling 3/05/03)
2,500 Oakland Unified School District, Alameda County, California, 8/12 at 100.00 AAA 2,659,450
General Obligation Bonds, Series 2002, 5.250%, 8/01/21 -
FGIC Insured
2,575 Oxnard School District, Ventura County, California, General 2/22 at 103.00 AAA 2,941,654
Obligation Bonds, Series 2001A Refunding, 5.750%, 8/01/30 -
MBIA Insured
1,000 Pomona Unified School District, California, General Obligation 8/11 at 103.00 AAA 1,185,630
Refunding Bonds, Series 1997-A, 6.150%, 8/01/15 -
MBIA Insured
3,000 Commonwealth of Puerto Rico, General Obligation Public No Opt. Call A- 3,632,760
Improvement Bonds of 1996, 6.500%, 7/01/13
5,000 San Diego Unified School District, California, 2000 General 7/10 at 100.00 AAA 5,233,000
Obligation Bonds, Election of 1998, Series B, 5.125%, 7/01/21 -
MBIA Insured
24
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 29.5%
$ 390 Inglewood Redevelopment Agency, City of Inglewood, Los Angeles No Opt. Call BBB $ 395,491
County, California, Century Redevelopment Project, 1993 Tax
Allocation Bonds, Series A, 5.900%, 7/01/03
3,000 Los Angeles County Public Works Finance Authority, California, 10/07 at 101.00 AA 3,111,840
Revenue Bonds, Series 1997A, Los Angeles County Regional
Park and Open Space District, 5.000%, 10/01/19
2,000 Monterey County, California, Certificate of Participation, 2001 8/11 at 100.00 Aaa 2,080,080
Master Plan Financing, 5.000%, 8/01/21 - MBIA Insured
1,000 City of Ontario, California, Community Facilities District No. 5, 9/06 at 102.00 N/R 1,057,570
Freeway Interchange Project, Special Tax Bonds, Series 1997,
6.375%, 9/01/17
10,900 Ontario Redevelopment Financing Authority, San Bernardino No Opt. Call AAA 15,101,296
County, California, 1995 Revenue Refunding Bonds, Project
No. 1, 7.400%, 8/01/25 - MBIA Insured
2,500 Sacramento City Financing Authority, California, Lease Revenue No Opt. Call AAA 2,829,550
Bonds, Series 1993A Refunding, 5.400%, 11/01/20 -
AMBAC Insured
2,255 San Bernardino County, California, Certificates of Participation, 8/05 at 102.00 AAA 2,456,980
Series 1995, Medical Center Financing Project,
5.500%, 8/01/22 - MBIA Insured
1,200 City of San Jose Financing Authority, California, Lease Revenue 9/11 at 100.00 AAA 1,257,144
Bonds, Series 2001F, Convention Center Project Refunding,
5.000%, 9/01/20 - MBIA Insured
980 Redevelopment Agency of the City of Suisun City, County 10/03 at 102.00 AAA 1,025,080
of Solano, California, Suisun City Redevelopment Project,
1993 Tax Allocation Refunding Bonds, 5.900%, 10/01/23 -
MBIA Insured
7,000 Community Redevelopment Agency of Union City, California, 10/09 at 101.00 AAA 7,760,270
Redevelopment Project Tax Allocation Bonds, Series 1999,
5.750%, 10/01/32 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 26.1%
2,000 Bay Area Toll Authority, California, San Francisco Bay Area No Opt. Call AA 2,235,880
Toll Bridge Revenue Bonds, 2001 Series D, 5.000%, 4/01/10
8,500 City of Long Beach, California, Harbor Revenue Bonds, 5/10 at 101.00 AA- 9,467,640
Series 2000A, 5.750%, 5/15/14 (Alternative Minimum Tax)
5,250 Port of Oakland, California, Revenue Bonds, 2000 Series K, 5/10 at 100.00 AAA 5,686,380
5.750%, 11/01/29 (Alternative Minimum Tax) - FGIC Insured
5,000 County of Sacramento, California, Airport System Revenue 7/06 at 102.00 AAA 5,478,300
Bonds, Series 1996A, 5.900%, 7/01/24 (Alternative
Minimum Tax) - MBIA Insured
Airports Commission of the City and County of San Francisco,
California, San Francisco International Airport, Second Series
Revenue Bonds, Issue 25:
2,515 5.500%, 5/01/24 (Alternative Minimum Tax) - FSA Insured 5/10 at 101.00 AAA 2,633,054
3,100 5.750%, 5/01/30 (Alternative Minimum Tax) - FSA Insured 5/10 at 101.00 AAA 3,290,092
2,500 Airports Commission of the City and County of San Francisco, 1/08 at 102.00 AAA 2,808,675
California, San Francisco International Airport, Special
Facilities Lease Revenue Bonds, SFO Fuel Company LLC,
Series 2000A, 6.125%, 1/01/27 (Alternative Minimum
Tax) - FSA Insured
1,250 Airports Commission of the City and County of San Francisco, 5/10 at 101.00 AAA 1,302,050
California, San Francisco International Airport, Second Series
Revenue Bonds, Issue 26B, 5.000%, 5/01/21 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 6.0%
2,000 Mendocino County, California, Certificates of Participation, 8/03 at 102.00 A*** 2,085,920
Series 1993, Mendocino County Public Facilities Financing
Corporation, 6.000%, 8/15/23 (Pre-refunded to 8/15/03)
4,000 City of Pomona, California, Single Family Mortgage Revenue No Opt. Call AAA 5,426,560
Refunding Bonds, GNMA and FHLMC Mortgage-Backed
Securities, Series 1990B, 7.500%, 8/01/23
25
Nuveen California Municipal Market Opportunity Fund, Inc. (NCO) (continued)
Portfolio of INVESTMENTS February 28, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 23.1%
$ 3,000 California Pollution Control Financing Authority, Pollution Control 4/11 at 102.00 AAA $ 3,244,350
Refunding Revenue Bonds, Pacific Gas and Electric Company,
1996A Remarketed, 5.350%, 12/01/16 (Alternative
Minimum Tax) - MBIA Insured
1,500 California Pollution Control Financing Authority, Pollution Control 9/09 at 101.00 AAA 1,564,185
Revenue Refunding Bonds, Southern California Edison Company,
Series 1999A, 5.450%, 9/01/29 - MBIA Insured
863 California Pollution Control Financing Authority, Solid Waste 7/07 at 102.00 N/R 122,801
Disposal Revenue Bonds, CanFibre of Riverside Project,
Tax-Exempt Series 1997A, 9.000%, 7/01/19 (Alternative
Minimum Tax)#
3,000 California Department of Water Resources, Power Supply 5/12 at 101.00 A3 3,117,990
Revenue Bonds, Series 2002A, 5.125%, 5/01/18
4,500 California Statewide Communities Development Authority, 12/04 at 102.00 N/R 3,800,610
Certificates of Participation, Rio Bravo Fresno Project,
Series 1999A Refunding, 6.300%, 12/01/18
8,000 City of Chula Vista, California, Industrial Development Revenue 6/03 at 102.00 AAA 8,193,280
Bonds, San Diego Gas and Electric Company, 1992 Series A,
6.400%, 12/01/27 (Alternative Minimum Tax) - AMBAC Insured
Merced Irrigation District, California, 2001 Electric System
Refunding Revenue Bonds, Electric System Project:
2,750 6.750%, 9/01/31 9/05 at 102.00 Baa3 2,901,305
1,000 6.850%, 9/01/36 9/05 at 102.00 Baa3 1,057,130
4,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, No Opt. Call AAA 4,642,960
Series HH, 5.500%, 7/01/10 - FSA Insured
500 Sacramento Municipal Utility District, California, Electric Revenue 8/12 at 100.00 AAA 531,605
Bonds, 2002 Series Q Refunding, 5.250%, 8/15/22 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 18.6%
4,000 California Department of Water Resources, Central Valley Project, 12/11 at 100.00 AA 4,510,280
Water System Revenue Bonds, Series 2001W, 5.500%, 12/01/15
1,030 California Department of Water Resources, Central Valley Project, No Opt. Call AAA 1,194,007
Water System Revenue Bonds, Series X,
5.500%, 12/01/17 - FGIC Insured
4,000 City of Los Angeles, California, Wastewater System Revenue 11/03 at 102.00 AAA 4,040,320
Bonds, Series 1993D, 4.700%, 11/01/19 - FGIC Insured
2,000 Metropolitan Water District of Southern California, Water 7/06 at 100.00 AAA 2,011,240
Revenue Refunding Bonds, 1996 Series B,
4.750%, 7/01/21 - MBIA Insured
2,000 Public Utilities Commission of the City and County of 4/13 at 100.00 AAA 2,158,400
San Francisco, California, Clean Water Revenue Bonds,
Series 2003A Refunding, 5.250%, 10/01/20 - MBIA Insured
10,000 City of Santa Maria, California, Water and Wastewater Revenue 8/12 at 101.00 AAA 9,582,500
Bonds, Subordinate Certificates of Participation, Series 1997A,
0.000%, 8/01/27 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 181,048 Total Long-Term Investments (cost $179,382,540) - 154.3% 194,481,443
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (0.3)% (443,220)
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (54.0)% (68,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $126,038,223
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares.
* 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.
** Ratings: Using the higher of Standard & Poor's or Moody's
rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of principal and
interest. Such securities are normally considered to be
equivalent to AAA rated securities.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
# Non-income producing security. On January 1, 2002, CFR
Holdings, Inc. (an entity formed by Nuveen for the benefit
of the Nuveen Funds owning various interests in CanFibre of
Riverside) took possession of CanFibre of Riverside assets
on behalf of the various Nuveen Funds. CFR Holdings, Inc.,
has determined that a sale of the facility is in the best
interest of shareholders and is proceeding accordingly.
See accompanying notes to financial statements.
26
Nuveen California Investment Quality Municipal Fund, Inc. (NQC)
Portfolio of
INVESTMENTS February 28, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 4.9%
$ 4,620 California County Tobacco Securitization Agency, Stanislaus 6/12 at 100.00 A1 $ 4,131,204
County Tobacco Funding Corporation, Series 2002A, Tobacco
Settlement Asset-Backed Bonds, 5.500%, 6/01/33
4,000 California Statewide Financing Authority, Tobacco Settlement 5/12 at 100.00 A1 3,624,760
Asset-Backed Bonds, Series 2002A, Pooled Tobacco Securitization
Program, 5.625%, 5/01/29
3,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 A1 2,902,830
Tobacco Settlement Asset-Backed Bonds, Series 2003-A1,
6.250%, 6/01/33
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 8.0%
5,000 California Educational Facilities Authority, Revenue Bonds, 10/06 at 102.00 AAA 5,060,300
Chapman University, Series 1996, 5.125%, 10/01/26 -
Connie Lee/A Insured
3,000 California Educational Facilities Authority, Revenue Bonds, 11/10 at 100.00 Aaa 3,320,010
University of the Pacific, Series 2000, 5.750%, 11/01/30 -
MBIA Insured
6,000 State Public Works Board of California, Lease Revenue Bonds, 10/07 at 102.00 A2 6,214,440
Various California State University Projects, 1997 Series C,
5.400%, 10/01/22
2,540 Regents of the University of California, Research Facilities 9/09 at 101.00 AAA 2,595,601
Revenue Bonds, 2001 Series E, 5.000%, 9/01/25 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 10.4%
2,110 California Health Facilities Financing Authority, Kaiser Permanente 10/08 at 101.00 A 2,242,213
Revenue Bonds, Series 1998B, 5.250%, 10/01/12
3,000 California Health Facilities Financing Authority, Cedars-Sinai 12/09 at 101.00 A3 3,185,850
Medical Center Revenue Bonds, Series 1999A, 6.125%, 12/01/30
2,145 California Statewide Communities Development Authority, Kaiser No Opt. Call A 2,280,135
Permanente Revenue Bonds, Series 2002E, 4.700%, 11/01/36
(Mandatory put 6/01/09)
Central Joint Powers Health Financing Authority, California,
Certificates of Participation, Series 1993, Community Hospital
of Central California:
1,750 5.250%, 2/01/13 8/03 at 102.00 Baa1 1,769,670
6,820 5.500%, 2/01/15 8/03 at 102.00 Baa1 6,899,385
5,000 City of Loma Linda, California, Hospital Revenue Bonds, Loma 12/03 at 102.00 BB- 4,952,750
Linda University Medical Center Project, Series 1993-A,
6.500%, 12/01/18
1,000 City of Stockton Health Facility, California, Dameron Hospital 12/07 at 102.00 BBB+ 1,052,110
Association Revenue Bonds, 1997 Series A, 5.700%, 12/01/14
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 5.2%
10,000 California Statewide Communities Development Authority, 7/08 at 101.00 BBB 10,829,900
Apartment Development Revenue Refunding Bonds, Irvine
Apartment Communities, L.P., Series 1998A, 4.900%, 5/15/25
(Mandatory put 5/15/08)
395 City of Stanton, California, Multifamily Housing Revenue Bonds, 8/07 at 102.00 AAA 437,668
Continental Gardens Apartments, Series 1997, 5.625%, 8/01/29
(Alternative Minimum Tax) (Mandatory put 8/01/09)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 4.7%
35,750 California Housing Finance Agency, Home Mortgage Revenue 8/09 at 40.45 AAA 10,170,875
Bonds, Series 1999K, 0.000%, 8/01/24 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 14.9%
14,000 State of California, Various Purpose General Obligation Bonds, 3/10 at 101.00 AAA 15,022,140
5.750%, 3/01/27 - MBIA Insured
2,395 Fontana Unified School District, San Bernardino County, 5/09 at 102.00 AAA 2,740,359
California, General Obligation Bonds, Series 1997D Refunding,
5.800%, 5/01/17 - FGIC Insured
27
Nuveen California Investment Quality Municipal Fund, Inc. (NQC) (continued)
Portfolio of INVESTMENTS February 28, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 10,060 City of Los Angeles, California, General Obligation Bonds, 9/11 at 100.00 AA $10,473,667
Series 2001A, 5.000%, 9/01/21
3,250 Commonwealth of Puerto Rico, Public Improvement Refunding No Opt. Call AAA 3,777,443
General Obligation Bonds, 2002 Series A, 5.500%, 7/01/20 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 32.8%
3,135 State Public Works Board of California, Lease Revenue Bonds, 12/12 at 100.00 AAA 3,463,517
Department of General Services, Capital East End, Series 2002A,
5.250%, 12/01/15 - AMBAC Insured
3,000 State Public Works Board of California, Lease Revenue Bonds, 12/11 at 102.00 AAA 3,127,920
Department of Mental Health Hospital Addition, Series 2001A,
5.000%, 12/01/21 - AMBAC Insured
Los Angeles County Metropolitan Transportation Authority,
California, Proposition C Sales Tax Revenue Bonds, Second Senior
Lien Series 2000A:
8,005 5.250%, 7/01/25 - FGIC Insured 7/10 at 101.00 AAA 8,336,247
6,500 5.250%, 7/01/30 - FGIC Insured 7/10 at 101.00 AAA 6,737,120
4,130 Manteca Unified School District, San Joaquin County, California, 9/11 at 101.00 AAA 4,270,544
Community Facilities District No. 89-2, Special Tax Bonds,
2001 Series C, 5.000%, 9/01/23 - MBIA Insured
1,685 City of Ontario, California, Community Facilities District No. 5, 9/06 at 102.00 N/R 1,782,005
Freeway Interchange Project, Special Tax Bonds, Series 1997,
6.375%, 9/01/17
3,600 Ontario Redevelopment Financing Authority, San Bernardino No Opt. Call AAA 4,987,584
County, California, 1995 Revenue Refunding Bonds,
Project No. 1, 7.400%, 8/01/25 - MBIA Insured
9,825 County of Orange, California, 1996 Recovery Certificates of 7/06 at 102.00 AAA 11,267,998
Participation, Series A, 6.000%, 7/01/26 - MBIA Insured
4,000 Puerto Rico Highway and Transportation Authority, Transportation 7/12 at 100.00 A 4,136,240
Revenue Bonds, Series D, 5.375%, 7/01/36
1,865 Redding Joint Powers Financing Authority, California, Solid Waste 1/04 at 102.00 A- 1,922,237
and Corporate Yard Lease Revenue Bonds, Series 1993A,
5.500%, 1/01/13
4,000 Sacramento City Financing Authority, California, Lease Revenue No Opt. Call AAA 4,527,280
Bonds, Series 1993A Refunding, 5.400%, 11/01/20 -
AMBAC Insured
6,000 Redevelopment Agency of the City of San Jose, California, 2/04 at 102.00 AAA 6,008,700
Merged Area Redevelopment Project, Tax Allocation Bonds,
Series 1993, 4.750%, 8/01/24 - MBIA Insured
3,535 City of San Jose Financing Authority, California, Lease 9/11 at 100.00 AAA 3,703,337
Revenue Bonds, Series 2001F, Convention Center Project
Refunding, 5.000%, 9/01/20 - MBIA Insured
5,250 Santa Cruz County Redevelopment Agency, California, Tax 9/10 at 102.00 AAA 5,496,015
Allocation Bonds, Live Oak Soquel Community Improvement,
Subordinate Lien Series 2000, 5.250%, 9/01/25 - AMBAC Insured
850 Community Development Commission of the City of Santa Fe 9/11 at 101.00 AAA 862,674
Springs, Los Angeles County, California, Consolidated
Redevelopment Project Tax Allocation Bonds, 2001 Series A,
4.750%, 9/01/22 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 37.8%
18,000 Alameda Corridor Transportation Authority, California, Senior 10/09 at 101.00 AAA 18,243,900
Lien Revenue Bonds, Series 1999A, 5.000%, 10/01/29 -
MBIA Insured
3,875 Bay Area Toll Authority, California, San Francisco Bay Area Toll 4/11 at 100.00 AA 4,262,771
Bridge Revenue Bonds, 2001 Series D, 5.000%, 4/01/12
30,000 Foothill/Eastern Transportation Corridor Agency, California, 1/14 at 101.00 BBB- 20,769,300
Toll Road Refunding Revenue Bonds, Series 1999,
0.000%, 1/15/29
2,000 Foothill/Eastern Transportation Corridor Agency, California, 1/10 at 100.00 AAA 2,015,660
Toll Road Revenue Bonds, Series 1995A, 5.000%, 1/01/35 -
MBIA Insured
9,980 City of Long Beach, California, Harbor Revenue Bonds, 5/10 at 101.00 AA- 10,431,495
Series 2000A, 5.500%, 5/15/25 (Alternative Minimum Tax)
9,000 Port of Oakland, California, Revenue Bonds, 2000 Series K, 5/10 at 100.00 AAA 9,748,080
5.750%, 11/01/29 (Alternative Minimum Tax) - FGIC Insured
15,000 Airports Commission of the City and County of San Francisco, 5/10 at 101.00 AAA 15,919,800
California, San Francisco International Airport, Second Series
Revenue Bonds, Issue 25, 5.750%, 5/01/30 (Alternative
Minimum Tax) - FSA Insured
28
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 16.3%
$ 12,830 State of California, Various Purpose General Obligation Bonds, 3/05 at 101.00 A*** $ 14,149,566
5.750%, 3/01/13 (Pre-refunded to 3/01/05)
1,500 California Statewide Communities Development Authority, No Opt. Call N/R*** 1,639,665
Certificates of Participation, Insured Hospital Revenue
Refunding, Triad Healthcare, Series 1992, 6.250%, 8/01/06
1,000 Foothill/Eastern Transportation Corridor Agency, California, 1/07 at 100.00 AAA 1,157,410
Toll Road Revenue Bonds, Series 1995A, 6.000%, 1/01/34
(Pre-refunded to 1/01/07)
2,500 Community Redevelopment Agency of the City of Los Angeles, 7/03 at 100.00 BBB*** 2,528,925
California, Central Business District Redevelopment Project,
Tax Allocation Refunding Bonds, Series G, 6.750%, 7/01/10
135 Redding Joint Powers Financing Authority, California, Solid 1/04 at 102.00 A-*** 142,749
Waste and Corporate Yard Lease Revenue Bonds,
Series 1993A, 5.500%, 1/01/13 (Pre-refunded to 1/01/04)
12,000 Airports Commission of the City and County of San Francisco, 5/05 at 101.00 AAA 13,393,080
California, San Francisco International Airport, Second Series
Revenue Bonds, Issue 11, 6.250%, 5/01/26 (Alternative
Minimum Tax) (Pre-refunded to 5/01/05) - FGIC Insured
2,000 Redevelopment Agency of the City of San Leandro, California, 6/03 at 102.00 A-*** 2,066,320
Plaza 1 and Plaza 2 Redevelopment Projects, 1993 Tax
Allocation Bonds, Series A, 6.125%, 6/01/23 (Pre-refunded
to 6/01/03)
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 9.1%
6,000 California Department of Water Resources, Power Supply 5/12 at 101.00 A3 6,235,980
Revenue Bonds, Series 2002A, 5.125%, 5/01/18
7,945 City of Chula Vista, California, Industrial Development Revenue 6/03 at 102.00 AAA 8,136,951
Bonds, San Diego Gas and Electric Company, 1992 Series A,
6.400%, 12/01/27 (Alternative Minimum Tax) - AMBAC Insured
5,000 Department of Water and Power of Los Angeles, California, 7/11 at 100.00 AAA 5,331,500
Power System Revenue Bonds, 2001 Series A1,
5.250%, 7/01/20 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 5.5%
4,000 California Department of Water Resources, Central Valley 12/11 at 100.00 AA 4,475,440
Project, Water System Revenue Bonds, Series 2001W,
5.500%, 12/01/16
1,550 California Department of Water Resources, Central Valley No Opt. Call AAA 1,796,807
Project, Water System Revenue Bonds, Series X,
5.500%, 12/01/17 - FGIC Insured
5,500 Orange County Water District, California, Revenue Certificates 8/03 at 100.00 AA+ 5,520,182
of Participation, Series 1993A, 5.000%, 8/15/18
------------------------------------------------------------------------------------------------------------------------------------
$ 341,030 Total Long-Term Investments (cost $300,772,131) - 149.6% 322,278,309
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.4% 5,177,200
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.0)% (112,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 215,455,509
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares.
* 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.
** Ratings: Using the higher of Standard & Poor's or Moody's
rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of principal and
interest. Such securities are normally considered to be
equivalent to AAA rated securities.
N/R Investment is not rated.
See accompanying notes to financial statements.
29
Nuveen California Select Quality Municipal Fund, Inc. (NVC)
Portfolio of
INVESTMENTS February 28, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL GOODS - 1.3%
$ 4,720 California Pollution Control Financing Authority, Solid Waste No Opt. Call BBB $ 4,843,853
Disposal Revenue Bonds, Waste Management Inc. Project,
Series 2002B, 4.450%, 7/01/27 (Alternative Minimum Tax)
(Mandatory put 7/01/05)
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 7.8%
4,625 California County Tobacco Securitization Agency, Stanislaus 6/12 at 100.00 A1 4,135,675
County Tobacco Funding Corporation, Series 2002A, Tobacco
Settlement Asset-Backed Bonds, 5.500%, 6/01/33
9,150 California Pollution Control Financing Authority, Sewage and 12/06 at 101.00 A+ 9,493,491
Solid Waste Disposal Facilities Revenue Bonds, Anheuser-
Busch Project, Series 1996, 5.750%, 12/01/30 (Alternative
Minimum Tax)
15,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 A1 14,514,150
Tobacco Settlement Asset-Backed Bonds, Series 2003-A1,
6.250%, 6/01/33
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 3.1%
6,000 Regents of the University of California, Multiple Purpose 9/03 at 102.00 AAA 6,062,580
Project Revenue Bonds, Series 1993C Refunding,
5.000%, 9/01/23 - AMBAC Insured
5,125 Regents of the University of California, Research Facilities 9/09 at 101.00 AAA 5,298,994
Revenue Bonds, 2001 Series E, 5.000%, 9/01/22 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
ENERGY - 2.8%
9,500 California Pollution Control Financing Authority, Exempt Facilities 12/06 at 102.00 AAA 10,115,220
Revenue Bonds, Series 1996, Mobil Oil Corporation Project,
5.500%, 12/01/29 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 16.8%
1,750 ABAG Finance Authority for Nonprofit Corporations, 4/12 at 100.00 A 1,830,780
California, Insured Revenue Bonds, Sansum-Santa Barbara
Medical Foundation Clinic, Series 2002A, 5.500%, 4/01/21
13,500 California Health Facilities Financing Authority, Revenue Bonds, 12/09 at 101.00 A3 14,336,325
Cedars-Sinai Medical Center, Series 1999A, 6.125%, 12/01/30
3,000 California Health Facilities Financing Authority, Insured Health 7/04 at 102.00 AAA 3,034,470
Facility Refunding Revenue Bonds, Catholic Healthcare West,
1994 Series A, 4.750%, 7/01/19 - MBIA Insured
5,000 California Statewide Communities Development Authority, 7/07 at 102.00 AA- 5,146,800
Certificates of Participation, Series 1997, St. Joseph Health
System Refunding, 5.125%, 7/01/17
14,000 California Statewide Communities Development Authority, 7/10 at 101.00 BBB 15,073,940
Certificates of Participation, Catholic Healthcare West,
6.500%, 7/01/20
1,775 California Statewide Communities Development Authority, 7/03 at 102.00 AA- 1,801,891
Certificates of Participation, St. Joseph Health System Obligated
Group, 5.500%, 7/01/23
2,000 California Statewide Communities Development Authority, No Opt. Call AAA 2,074,520
Revenue Refunding Bonds, Sherman Oaks Project,
Series 1998A, 5.000%, 8/01/22 - AMBAC Insured
9,350 City of Loma Linda, California, Hospital Revenue Refunding 12/03 at 102.00 AAA 9,806,841
Bonds, Loma Linda University Medical Center Project,
Series 1993-C, 5.375%, 12/01/22 - MBIA Insured
6,000 County of Madera, California, Certificates of Participation, 3/05 at 102.00 AAA 6,574,500
Valley Children's Hospital Project, Series 1995, 5.750%, 3/15/28 -
MBIA Insured
1,050 City of Stockton, California, Health Facility Revenue Bonds, 12/07 at 102.00 BBB+ 1,123,847
Dameron Hospital Association, 1997 Series A, 5.450%, 12/01/10
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 4.8%
2,130 California Housing Finance Agency, Single Family Mortgage 5/05 at 102.00 AAA 2,207,915
Bonds, 1995 Issue A-2 Senior Bonds, 6.350%, 8/01/15
(Alternative Minimum Tax)
770 California Housing Finance Agency, Single Family Mortgage 10/05 at 102.00 AAA 827,219
Bonds, 1995 Issue B-2 Mezzanine, 6.250%, 8/01/14 (Alternative
Minimum Tax) - AMBAC Insured
30
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY (continued)
$ 3,950 California Housing Finance Agency, Single Family Mortgage 10/05 at 102.00 AAA $ 4,092,792
Bonds, 1995 Issue B-2 Senior, 6.250%, 2/01/18 (Alternative
Minimum Tax)
2,080 California Housing Finance Agency, Home Mortgage Revenue 2/06 at 102.00 AAA 2,176,658
Bonds, 1995 Series M, 6.150%, 8/01/27 (Alternative Minimum
Tax) - MBIA Insured
475 California Housing Finance Agency, Home Mortgage Revenue 8/06 at 102.00 Aa2 483,455
Bonds, 1996 Series H, 6.250%, 8/01/27 (Alternative
Minimum Tax)
22,230 California Housing Finance Agency, Home Mortgage Revenue 8/10 at 27.19 AAA 3,987,840
Bonds, 2000 Series T, 0.000%, 2/01/32 (Alternative Minimum
Tax) - MBIA Insured
3,560 Puerto Rico Housing Bank and Finance Agency, Affordable 4/05 at 102.00 AAA 3,717,850
Housing Mortgage Subsidy Program, Single Family Mortgage
Revenue Bonds, Portfolio I, 6.250%, 4/01/29 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 21.2%
1,500 State of California, General Obligation Various Purpose Bonds, 6/10 at 100.00 A 1,555,680
5.500%, 6/01/25
State of California, Various Purpose General Obligation Bonds:
4,700 5.625%, 5/01/22 - FGIC Insured 5/10 at 101.00 AAA 5,083,520
7,000 5.500%, 9/01/24 9/09 at 101.00 A 7,281,260
10,000 State of California, General Obligation Educational Bonds, 3/10 at 101.00 AAA 10,730,100
5.750%, 3/01/27 - MBIA Insured
5,515 Fresno Unified School District, Fresno County, California, 8/09 at 102.00 AAA 5,753,634
2001 General Obligation Bonds, Election of 1995, Series E,
5.000%, 8/01/25 - FGIC Insured
10,060 City of Los Angeles, California, General Obligation Bonds, 9/11 at 100.00 AA 10,531,814
Series 2001A, 5.000%, 9/01/20
13,020 City of Los Angeles, California, Unified School District, 7/08 at 101.00 AAA 13,377,399
General Obligation Bonds, Election of 1997, Series B,
5.000%, 7/01/23 - FGIC Insured
6,030 Los Angeles Unified School District, California, General 7/10 at 100.00 AAA 6,415,317
Obligation Bonds, Election of 1997, Series D,
5.375%, 7/01/25 - FGIC Insured
2,200 Oakland Unified School District, Alameda County, California, 8/08 at 101.00 AAA 2,282,742
General Obligation Bonds, Series 2001, 5.125%, 8/01/21 -
FSA Insured
11,500 Commonwealth of Puerto Rico, Public Improvement Refunding No Opt. Call AAA 13,366,335
General Obligation Bonds, 2002 Series A, 5.500%, 7/01/20 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 29.6%
1,060 Avalon Community Improvement Agency, California, Community 8/03 at 100.00 A- 1,075,900
Improvement Project Area Tax Allocation Bonds, Series 1991A,
7.250%, 8/01/21
State Public Works Board of California, Lease Revenue Bonds,
Department of General Services, Capital East End, Series 2002A:
5,070 5.250%, 12/01/15 - AMBAC Insured 12/12 at 100.00 AAA 5,601,285
3,765 5.250%, 12/01/16 - AMBAC Insured 12/12 at 100.00 AAA 4,124,369
5,000 Culver City Redevelopment Financing Authority, California, 11/03 at 102.00 AAA 5,043,200
1993 Tax Allocation Refunding Revenue Bonds,
5.000%, 11/01/23 - AMBAC Insured
3,000 La Quinta Redevelopment Agency, California, Project Area 9/11 at 102.00 AAA 3,143,700
No. 1 Tax Allocation Bonds, Series 2001,
5.000%, 9/01/21 - AMBAC Insured
3,510 Long Beach Bond Finance Authority, California, Lease Revenue 10/07 at 102.00 AAA 3,556,227
and Refunding Bonds, Civic Center Project, 1997 Series A,
5.000%, 10/01/27 - MBIA Insured
16,500 Los Angeles County Metropolitan Transportation Authority, 7/08 at 101.00 AAA 16,826,700
California, Proposition C Sales Tax Revenue Bonds, Second
Senior Lien, Series 1998A Refunding, 5.000%, 7/01/23 -
AMBAC Insured
3,000 Los Angeles County Metropolitan Transportation Authority, 7/10 at 101.00 AAA 3,124,140
California, Proposition C Sales Tax Revenue Bonds, Second
Senior Lien, Series 2000A, 5.250%, 7/01/25 - FGIC Insured
4,750 Montclair Redevelopment Agency, California, Mobile Home Park 12/10 at 102.00 N/R 4,818,400
Revenue Bonds, Monterey Manor Estates Project,
Series 2000, 6.400%, 12/15/30
31
Nuveen California Select Quality Municipal Fund, Inc. (NVC) (continued)
Portfolio of INVESTMENTS February 28, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ Monterey County, California, Certificate of Participation,
2001 Master Plan Financing:
2,075 5.000%, 8/01/19 - MBIA Insured 8/11 at 100.00 Aaa $ 2,183,419
6,000 5.000%, 8/01/26 - MBIA Insured 8/11 at 100.00 Aaa 6,100,860
2,580 Redevelopment Agency of the City of Oakland, California, 3/13 at 100.00 AAA 2,877,448
Central District Redevelopment Project, Subordinate Lien
Tax Allocation Bonds, Series 2003, 5.500%, 9/01/18 -
FGIC Insured
3,605 Oakland State Building Authority, California, Lease Revenue 4/08 at 101.00 AAA 3,701,145
Bonds, Elihu M. Harris State Office Building, 1998 Series A,
5.000%, 4/01/23 - AMBAC Insured
2,280 Ontario Redevelopment Financing Authority, California, Lease 8/11 at 101.00 AAA 2,475,373
Revenue Bonds, Capital Projects, Series 2001, 5.250%, 8/01/18 -
AMBAC Insured
2,185 Pleasanton Joint Powers Financing Authority, California, 9/03 at 102.00 Baa1 2,274,126
Reassessment Revenue Bonds, 1993 Series A, 6.150%, 9/02/12
12,000 Rancho Cucamonga Redevelopment Agency, California, Tax 9/11 at 100.00 AAA 12,257,160
Allocation Revenue Bonds, Rancho Redevelopment Project,
Series 2001, 5.125%, 9/01/30 - MBIA Insured
360 Riverside Public Financing Authority, Riverside County, 8/03 at 100.00 N/R 364,702
California, 1991 Revenue Bonds, Series A, Multiple Project
Loans, 8.000%, 2/01/18
5,235 City and County of San Francisco Redevelopment Financing 8/03 at 103.00 A 5,360,117
Authority, California, 1993 Series C Tax Allocation Revenue
Bonds, San Francisco Redevelopment Projects, 5.125%, 8/01/18
2,000 San Francisco State Building Authority, California, Lease Revenue 12/06 at 102.00 AAA 2,188,400
Bonds, San Francisco Civic Center Complex, 1996 Series A,
5.250%, 12/01/16 - AMBAC Insured
10,000 Redevelopment Agency of the City of San Jose, California, 8/08 at 102.00 A 10,249,700
Merged Area Redevelopment Project, Tax Allocation Bonds,
Series 1998, 5.250%, 8/01/29
2,200 City of San Jose Financing Authority, California, Lease Revenue 9/11 at 100.00 AAA 2,304,764
Bonds, Series 2001F, Convention Center Project Refunding,
5.000%, 9/01/20 - MBIA Insured
2,000 City of Vista, California, Mobile Home Park Revenue Bonds, 3/09 at 102.00 N/R 1,896,700
Vista Manor Mobile Home Park Project, Series 1999A,
5.750%, 3/15/29
5,000 City of West Hollywood, California, Certificates of Participation, 2/08 at 102.00 AAA 5,086,150
Series 1998 Refunding, 5.000%, 2/01/25 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 18.0%
5,000 Alameda Corridor Transportation Authority, California, Senior 10/09 at 101.00 AAA 5,067,750
Lien Revenue Bonds, Series 1999A, 5.000%, 10/01/29 -
MBIA Insured
8,300 Foothill/Eastern Transportation Corridor Agency, California, 1/10 at 100.00 AAA 8,364,989
Toll Road Revenue Bonds, Series 1995A, 5.000%, 1/01/35 -
MBIA Insured
7,500 Harbor Department of the City of Los Angeles, California, 8/06 at 101.00 AAA 8,542,425
Revenue Bonds, Issue of 1996, 6.200%, 8/01/25 (Alternative
Minimum Tax) - MBIA Insured
8,000 Port of Oakland, California, Revenue Bonds, 2000 Series K, 5/10 at 100.00 AAA 8,664,960
5.750%, 11/01/29 (Alternative Minimum Tax) - FGIC Insured
3,450 Airports Commission of the City and County of San Francisco, 5/04 at 102.00 AAA 3,708,164
California, San Francisco International Airport, Second Series
Revenue Bonds, Issue 5, 6.500%, 5/01/24 (Alternative
Minimum Tax) - FGIC Insured
20,000 Airports Commission of the City and County of San Francisco, 5/10 at 101.00 AAA 21,226,400
California, San Francisco International Airport, Second Series
Revenue Bonds, Issue 25, 5.750%, 5/01/30 (Alternative
Minimum Tax) - FSA Insured
5,000 Airports Commission of the City and County of San Francisco, 5/11 at 100.00 AAA 5,383,100
California, San Francisco International Airport, Second Series
Revenue Refunding Bonds, Issue 27B, 5.250%, 5/01/18 -
FGIC Insured
3,665 Airports Commission of the City and County of San Francisco, 5/12 at 100.00 AAA 3,837,255
California, San Francisco International Airport, Second Series
Revenue Refunding Bonds, Issue 28A, 5.250%, 5/01/18
(Alternative Minimum Tax) - MBIA Insured
32
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 11.4%
$ 3,000 California Pollution Control Financing Authority, Solid Waste 7/03 at 101.00 Aaa $ 3,490,350
Revenue Bonds, North County Recycling Center, 1991 Series A,
6.750%, 7/01/17
2,000 State Public Works Board of California, Lease Revenue Bonds, 9/05 at 100.00 A2*** 2,241,540
Trustees of California State University, 1995 Series A, Various
California State University Projects, 6.000%, 9/01/15
(Pre-refunded to 9/01/05)
6,000 Cerritos Public Financing Authority, California, 1993 Revenue 11/03 at 102.00 A-*** 6,323,040
Bonds, Series A, Los Cerritos Redevelopment Project Loan,
6.050%, 11/01/20 (Pre-refunded to 11/01/03)
2,110 County of Contra Costa, California, 1989 Home Mortgage 5/05 at 100.00 AAA 2,612,750
Revenue Bonds, GNMA Mortgage-Backed Securities Program,
7.700%, 11/01/09 (Alternative Minimum Tax)
7,500 Los Angeles County Public Works Finance Authority, California, 10/04 at 102.00 Aa3*** 8,235,075
Revenue Bonds, Series 1994A, Los Angeles County Regional
Park and Open Space District, 6.000%, 10/01/15 (Pre-refunded
to 10/01/04)
1,705 City of Palm Springs Financing Authority, California, Tax Allocation 8/05 at 100.00 N/R*** 1,937,136
Revenue Bonds, 1991 Series B, Agency Loans, 6.800%, 8/01/11
(Pre-refunded to 8/01/05)
10,000 Puerto Rico Highway and Transportation Authority, Transportation 7/10 at 101.00 A*** 12,095,100
Revenue Bonds, Series B, 6.000%, 7/01/31 (Pre-refunded
to 7/01/10)
4,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 4,366,760
Obligation Bonds, 2000 Series A, 5.500%, 10/01/32
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 17.0%
2,000 Anaheim Public Financing Authority, California, Electric System 10/12 at 100.00 AAA 2,175,020
Generation System Refunding Revenue Bonds, Series 2002B,
5.250%, 10/01/18 - FSA Insured
10,350 California Pollution Control Financing Authority, Pollution Control No Opt. Call A+ 11,898,153
Revenue Bonds, San Diego Gas and Electric Company,
1991 Series A, 6.800%, 6/01/15 (Alternative Minimum Tax)
9,550 California Pollution Control Financing Authority, Pollution 6/03 at 101.00 BB 9,396,150
Control Revenue Bonds, Southern California Edison Company,
1991 Series, 6.900%, 12/01/17 (Alternative Minimum Tax)
9,750 California Department of Water Resources, Power Supply 5/12 at 101.00 A3 10,133,468
Revenue Bonds, Series 2002A, 5.125%, 5/01/18
5,000 Department of Water and Power of the City of Los Angeles, 7/11 at 100.00 AAA 5,393,100
California, Power System Revenue Refunding Bonds,
Series 2001A2, 5.375%, 7/01/20 - MBIA Insured
5,225 City of Los Angeles, California, Sanitation Equipment Charge 2/11 at 100.00 AAA 5,622,413
Revenue Bonds, Series 2001A, 5.250%, 2/01/18 - FSA Insured
10,000 Merced Irrigation District, California, 2001 Electric System 9/05 at 102.00 Baa3 10,571,300
Refunding Revenue Bonds, Electric System Project,
6.850%, 9/01/36
1,500 Sacramento Municipal Utility District, California, Electric Revenue 8/11 at 100.00 AAA 1,523,250
Bonds, Series 2001N, 5.000%, 8/15/28 - MBIA Insured
4,360 Sacramento Municipal Utility District, California, Electric Revenue 8/12 at 100.00 AAA 4,723,275
Bonds, 2002 Series Q Refunding, 5.250%, 8/15/19 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 16.3%
14,800 City of Los Angeles, California, Wastewater System Revenue 6/08 at 101.00 AAA 14,992,104
Bonds, Series 1998-A, 5.000%, 6/01/28 - FGIC Insured
5,000 Metropolitan Water District of Southern California, Water 1/08 at 101.00 AA 5,055,950
Revenue Bonds, 1997 Authorization, Series A, 5.000%, 7/01/26
2,525 Sacramento County Sanitation Districts Financing Authority, No Opt. Call AAA 2,903,573
California, Revenue Refunding Bonds, Series 2001,
5.500%, 12/01/20 - AMBAC Insured
17,670 Public Utilities Commission of the City and County of 11/11 at 100.00 AAA 18,125,179
San Francisco, California, Water Revenue Bonds, Series 2001A,
5.000%, 11/01/24 - FSA Insured
Public Utilities Commission of the City and County of San
Francisco, California, Clean Water Revenue Bonds, Series 2003A
Refunding:
2,120 5.250%, 10/01/19 - MBIA Insured 4/13 at 100.00 AAA 2,306,030
2,960 5.250%, 10/01/20 - MBIA Insured 4/13 at 100.00 AAA 3,194,432
33
Nuveen California Select Quality Municipal Fund, Inc. (NVC) (continued)
Portfolio of INVESTMENTS February 28, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
Sweetwater Authority, California, Water Revenue Bonds, Series 2002:
$ 2,800 5.500%, 4/01/19 - FSA Insured 4/10 at 101.00 AAA $ 3,087,812
9,055 5.000%, 4/01/22 - FSA Insured 4/10 at 101.00 AAA 9,368,211
------------------------------------------------------------------------------------------------------------------------------------
$ 533,335 Total Long-Term Investments (cost $506,730,038) - 150.1% 542,339,606
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 3.0% 11,056,367
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (53.1)% (192,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 361,395,973
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares.
* 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.
** Ratings: Using the higher of Standard & Poor's or Moody's
rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of principal and
interest. Such securities are normally considered to be
equivalent to AAA rated securities.
N/R Investment is not rated.
See accompanying notes to financial statements.
34
Nuveen California Quality Income Municipal Fund, Inc. (NUC)
Portfolio of
INVESTMENTS February 28, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 7.1%
$ 4,620 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 A1 $ 4,131,204
Settlement Asset-Backed Bonds, Stanislaus County Tobacco
Funding Corporation, Series 2002A, 5.500%, 6/01/33
7,325 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 A1 6,622,679
Settlement Asset-Backed Bonds, Sonoma County Tobacco
Funding Corporation, Series 2002B, 5.500%, 6/01/30
5,000 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 A1 4,568,050
Settlement Asset-Backed Bonds, Alameda County Tobacco
Asset Securitization Corporation, Series 2002, 5.750%, 6/01/29
10,000 California Statewide Financing Authority, Tobacco Settlement 5/12 at 100.00 A1 9,061,900
Asset-Backed Bonds, Series 2002A, Pooled Tobacco Securitization
Program, 5.625%, 5/01/29
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 18.5%
8,975 California Educational Facilities Authority, Revenue Bonds 11/10 at 100.00 Aaa 9,932,363
(University of the Pacific), Series 2000, 5.750%, 11/01/30 -
MBIA Insured
4,000 State Public Works Board of the State of California, Lease Revenue 3/06 at 102.00 AAA 4,463,360
Refunding Bonds, California Community Colleges, 1996 Series B,
Various Community Colleges Projects, 5.625%, 3/01/19 -
AMBAC Insured
6,400 Trustees of the California State University, Systemwide Revenue 11/12 at 100.00 AAA 6,738,176
Bonds, Series 2002A, 5.000%, 11/01/20 - AMBAC Insured
1,000 California Statewide Communities Development Authority, Auxiliary 4/06 at 101.00 AAA 1,117,700
Organization Revenue Certificates of Participation (The University
Corporation-California State University, Northridge), Series 1996,
6.000%, 4/01/26 - AMBAC Insured
3,500 Regents of the University of California, 1993 Refunding Certificates 11/03 at 102.00 Aa2 3,595,095
of Participation (UCLA Central Chiller/Cogeneration Facility),
5.600%, 11/01/20
1,615 Regents of the University of California, Certificates of Participation, 1/10 at 101.00 Aa2 1,701,855
2002 Series A, San Diego Campus and Sacramento Projects,
5.250%, 1/01/21
7,500 Regents of the University of California, Multiple Purpose Project 9/08 at 101.00 AA 7,715,475
Revenue Bonds, Series K, 5.300%, 9/01/30
Regents of the University of California, Research Facilities
Revenue Bonds, 2001 Series E:
2,305 5.000%, 9/01/23 - AMBAC Insured 9/09 at 101.00 AAA 2,376,662
5,150 5.000%, 9/01/24 - AMBAC Insured 9/09 at 101.00 AAA 5,280,913
Regents of the University of California, Multiple Purpose
Projects Revenue Bonds, 2002 Series O:
9,265 5.000%, 9/01/18 - FGIC Insured 9/10 at 101.00 AAA 9,827,385
10,255 5.000%, 9/01/19 - FGIC Insured 9/10 at 101.00 AAA 10,829,895
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 13.8%
1,750 ABAG Finance Authority for Nonprofit Corporations, California, 4/12 at 100.00 A 1,830,780
Insured Revenue Bonds, Sansum-Santa Barbara Medical
Foundation Clinic, Series 2002A, 5.500%, 4/01/21
California Health Facilities Financing Authority, Revenue Bonds
(Cedars-Sinai Medical Center), Series 1999A:
10,400 6.125%, 12/01/30 12/09 at 101.00 A3 11,044,280
15,000 6.250%, 12/01/34 12/09 at 101.00 A3 16,054,350
4,000 California Health Facilities Financing Authority, Insured Health 5/03 at 102.00 A 4,089,600
Facility Revenue Refunding Bonds (Valley Memorial Hospital),
Series 1993A, 6.000%, 5/01/17
California Statewide Communities Development Authority, Hospital
Revenue Certificates of Participation (Cedars-Sinai Medical
Center), Series 1992:
1,250 6.500%, 8/01/12 No Opt. Call A3 1,442,863
4,140 6.500%, 8/01/15 8/03 at 101.00 A3 4,239,567
35
Nuveen California Quality Income Municipal Fund, Inc. (NUC) (continued)
Portfolio of INVESTMENTS February 28, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE (continued)
$ 5,355 California Statewide Communities Development Authority, No Opt. Call A $ 5,692,365
Kaiser Permanente Revenue Bonds, Series 2002E,
4.700%, 11/01/36 (Mandatory put 6/01/09)
3,110 City of Loma Linda, California, Hospital Revenue Bonds 12/03 at 102.00 BB- 3,080,611
(Loma Linda University Medical Center Project), Series 1993-A,
6.500%, 12/01/18
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 3.1%
5,250 California Housing Finance Agency, Multi-Unit Rental Housing 8/03 at 101.00 Aa3 5,361,878
Revenue Bonds, Series 1992B-II, 6.700%, 8/01/15
1,000 California Statewide Communities Development Authority, 7/08 at 101.00 BBB 1,068,640
Apartment Development Revenue Refunding Bonds (Irvine
Apartment Communities, L.P.), Series 1998A, 5.100%, 5/15/25
(Mandatory put 5/17/10)
1,815 City of Stanton, California, Multifamily Housing Revenue Bonds 8/07 at 102.00 AAA 2,011,056
(Continental Gardens Apartments), Series 1997, 5.625%, 8/01/29
(Alternative Minimum Tax) (Mandatory put 8/01/09)
Housing Authority of the County of Yolo, California, 1992
Refunding Revenue Bonds, Series A (Russell Park Apartments):
1,000 6.900%, 11/01/08 5/03 at 102.00 Aa2 1,029,880
1,030 7.000%, 11/01/14 5/03 at 102.00 Aa2 1,062,218
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 4.3%
34,250 California Housing Finance Agency, Home Mortgage Revenue 8/09 at 40.45 AAA 9,744,125
Bonds, Series 1999K, 0.000%, 8/01/24 - MBIA Insured
22,170 California Housing Finance Agency, Home Mortgage Revenue 8/10 at 27.19 AAA 3,977,076
Bonds, 2000 Series T, 0.000%, 2/01/32 (Alternative
Minimum Tax) - MBIA Insured
1,080 County of Riverside, California, Single Family Mortgage Revenue No Opt. Call AAA 1,092,474
Bonds (GNMA Mortgage-Backed Securities Program), Issue B
of 1989, 7.600%, 11/01/19 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 15.7%
1,900 Azusa Unified School District, Los Angeles County, California, 7/12 at 100.00 AAA 2,067,105
General Obligation Bonds, Series 2002, 5.375%, 7/01/20 -
FSA Insured
10,000 State of California, Various Purpose, General Obligation Bonds, No Opt. Call A 11,641,400
6.400%, 9/01/07
13,665 State of California, General Obligation Veterans Welfare Bonds, 12/03 at 102.00 AA- 13,811,352
Series 1997BH, 5.600%, 12/01/32 (Alternative Minimum Tax)
6,815 State of California, Veterans General Obligation Bonds, 12/06 at 102.00 AA- 7,000,164
Series BJ, 5.700%, 12/01/32 (Alternative Minimum Tax)
2,845 Foothill-De Anza Community College District, Sasnta Clara 8/12 at 100.00 AAA 2,956,524
County, California, General Obligation Bonds, Series 2002
Refunding, 5.000%, 8/01/22 - FGIC Insured
1,370 Fremont-Newark Community College District, Alameda County, 8/11 at 101.00 AAA 1,490,300
California, General Obligation Bonds, Series 2002A,
5.375%, 8/01/20 - MBIA Insured
5,255 Livermore Valley Joint Unified School District, Alameda County, 8/11 at 100.00 AAA 5,395,834
California, General Obligation Bonds, Series 2001, Election of
1999, 5.125%, 8/01/26 - FSA Insured
2,000 Los Angeles Unified School District, California, General Obligation 7/10 at 100.00 AAA 2,127,800
Bonds, Election of 1997, Series 2000 D, 5.375%, 7/01/25 -
FGIC Insured
7,000 Los Angeles Unified School District, Los Angeles County, 7/13 at 100.00 AAA 7,283,500
California, General Obligation Bonds, Series 2003A,
5.000%, 7/01/22 - FSA Insured (WI, settling 3/05/03)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 29.5%
1,200 Burbank Public Financing Authority, California, Revenue Bonds, 12/12 at 100.00 AAA 1,262,016
West Olive Redevelopment Project, Series 2002,
5.125%, 12/01/22 - AMBAC Insured
2,030 State Public Works Board of the State of California, Lease 3/12 at 100.00 AAA 2,151,759
Revenue Bonds, Department of General Services, Series 2002C,
5.250%, 3/01/21 - AMBAC Insured
36
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
Community Development Commission of the City of Commerce,
California, Merged Redevelopment Project, Tax Allocation
Refunding Bonds, Series 1998A:
$ 1,000 5.650%, 8/01/18 8/08 at 102.00 N/R $ 1,017,340
2,765 5.700%, 8/01/28 8/08 at 102.00 N/R 2,771,332
2,100 Cudahy Redevelopment Agency, California, Cudahy Redevelopment 9/03 at 102.00 BBB 2,156,847
Project, Tax Allocation Refunding Bonds, Series 1994A,
6.700%, 9/01/24
5,000 Culver City Redevelopment Financing Authority, California, 11/03 at 102.00 AAA 5,019,750
1993 Tax Allocation Refunding Revenue Bonds,
4.600%, 11/01/20 - AMBAC Insured
Cupertino, California, Certificates of Participation, Capital
Improvement Refinancing Projects, Series 2002:
1,945 5.000%, 7/01/18 - AMBAC Insured 7/09 at 102.00 AAA 2,055,534
2,040 5.000%, 7/01/19 - AMBAC Insured 7/09 at 102.00 AAA 2,145,672
2,145 5.000%, 7/01/20 - AMBAC Insured 7/09 at 102.00 AAA 2,242,319
2,725 City of Fresno, California, Certificates of Participation, Street 6/03 at 101.50 A+ 2,799,665
Improvement Project, Series 1992, 6.625%, 12/01/11
1,910 Industry Urban Development Agency, California, Civic, Recreational 5/07 at 101.50 AAA 2,106,042
and Industrial Redevelopment Project No. 1, Tax Allocation
Refunding Bonds, Series 2002, 5.500%, 5/01/19 - MBIA Insured
2,300 City of Irvine, California, Mobile Home Park Revenue Bonds 3/08 at 102.00 N/R 2,274,884
(Meadows Mobile Home Park Project), Series 1998A,
5.700%, 3/01/18
8,000 Los Angeles County Metropolitan Transportation Authority, 7/10 at 101.00 AAA 8,331,040
California, Proposition C Sales Tax Revenue Bonds, Second
Senior Lien Series 2000A, 5.250%, 7/01/25 - FGIC Insured
3,005 Monterey County, California, Certificate of Participation, 8/11 at 100.00 Aaa 3,142,539
2001 Master Plan Financing, 5.000%, 8/01/20 - MBIA Insured
14,160 Oakland State Building Authority, California, Lease Revenue 4/08 at 101.00 AAA 14,537,647
Bonds (Elihu M. Harris State Office Building), 1998 Series A,
5.000%, 4/01/23 - AMBAC Insured
2,520 Oceanside Mobile Home Park Financing Authority, California, 3/08 at 102.00 N/R 2,408,087
Mobile Home Park Revenue Bonds (Laguna Vista Mobile
Estates Acquisition Project), Series 1998, 5.800%, 3/01/28
15,300 Ontario Redevelopment Financing Authority, San Bernardino No Opt. Call AAA 21,197,232
County, California, 1995 Revenue Refunding Bonds, Project
No. 1, 7.400%, 8/01/25 - MBIA Insured
3,000 Orange County Local Transportation Authority, Orange County, No Opt. Call AA+ 3,457,080
California, Measure M Sales Tax Revenue Bonds (Limited
Tax Bonds), 6.000%, 2/15/07
5,200 County of Orange, California, 1996 Recovery Certificates of 7/06 at 102.00 AAA 5,963,724
Participation, Series A, 6.000%, 7/01/26 - MBIA Insured
6,500 Puerto Rico Highway and Transportation Authority, Transportation 7/12 at 100.00 A 6,721,390
Revenue Bonds, Series D, 5.375%, 7/01/36
3,040 County of Riverside, California, Mobile Home Park Revenue Bonds, 3/09 at 102.00 N/R 2,687,755
Bravo Mobile Home Park Project, Series 1999A, 5.900%, 3/20/29
2,500 City of San Jose Financing Authority, California, Lease Revenue 9/11 at 100.00 AAA 2,619,050
Bonds, Series 2001F, Convention Center Project Refunding,
5.000%, 9/01/20 - MBIA Insured
2,000 San Jose Unified School District, Santa Clara County, California, 6/07 at 101.00 AAA 2,221,680
Certificates of Participation, 5.750%, 6/01/24 - MBIA Insured
37
Nuveen California Quality Income Municipal Fund, Inc. (NUC) (continued)
Portfolio of INVESTMENTS February 28, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 12.5%
$ 6,240 California Statewide Communities Development Authority, Special 10/11 at 100.00 Ca $ 959,400
Facility Revenue Bonds, Series 2001, United Air Lines, Inc. - Los
Angeles International Airport Cargo Project, 6.250%, 10/01/35
(Alternative Minimum Tax)#
Port of Oakland, California, Revenue Bonds, Series 2002N:
5,585 5.000%, 11/01/16 (Alternative Minimum Tax) - MBIA Insured 11/12 at 100.00 AAA 5,857,604
3,000 5.000%, 11/01/17 (Alternative Minimum Tax) - MBIA Insured 11/12 at 100.00 AAA 3,124,800
3,000 5.000%, 11/01/18 (Alternative Minimum Tax) - MBIA Insured 11/12 at 100.00 AAA 3,108,090
2,685 County of Sacramento, California, Airport System Revenue Bonds, 7/12 at 100.00 AAA 2,865,539
Series 2002A, 5.250%, 7/01/21 - FSA Insured
20,000 Airports Commission of the City and County of San Francisco, 5/10 at 101.00 AAA 21,226,400
California, San Francisco International Airport, Second Series
Revenue Bonds, Issue 25, 5.750%, 5/01/30 (Alternative
Minimum Tax) - FSA Insured
Airports Commission of the City and County of San Francisco,
California, San Francisco International Airport, Second Series
Revenue Refunding, Issue 28A:
1,480 5.250%, 5/01/17 (Alternative Minimum Tax) - MBIA Insured 5/12 at 100.00 AAA 1,558,603
3,865 5.250%, 5/01/19 (Alternative Minimum Tax) - MBIA Insured 5/12 at 100.00 AAA 4,020,218
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 22.3%
8,000 California Pollution Control Financing Authority, Solid Waste 7/03 at 101.00 Aaa 9,307,600
Revenue Bonds (North County Recycling Center), 1991 Series A
Bonds, 6.750%, 7/01/17
State Public Works Board of the State of California, Lease
Revenue Bonds (Department of Corrections), 1994 Series A
(California State Prison - Monterey County (Soledad II)):
4,950 6.875%, 11/01/14 (Pre-refunded to 11/01/04) 11/04 at 102.00 Aaa 5,526,923
7,625 7.000%, 11/01/19 (Pre-refunded to 11/01/04) 11/04 at 102.00 Aaa 8,529,477
2,070 California Statewide Communities Development Authority, No Opt. Call N/R*** 2,262,738
Certificates of Participation, Insured Hospital Revenue
Refunding, Triad Healthcare, Series 1992, 6.250%, 8/01/06
12,805 County of Contra Costa, California, 1988 Home Mortgage No Opt. Call AAA 18,488,627
Revenue Bonds (GNMA Mortgage-Backed Securities
Program), 8.250%, 6/01/21 (Alternative Minimum Tax)
4,000 Inland Empire Solid Waste Financing Authority, California, No Opt. Call AAA 4,711,480
Revenue Bonds, 1996 Series B (Landfill Improvement Financing
Project), 6.250%, 8/01/11 (Alternative Minimum Tax) -
FSA Insured
3,805 City of Lodi, California, Electric System Revenue Certificates 1/09 at 101.00 AAA 4,456,835
of Participation, 1999 Series A Installment Purchase Contract
with the Lodi Public Improvement Corporation, 5.500%, 1/15/24
(Pre-refunded to 1/15/09) - MBIA Insured
5,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 5,458,450
Obligation Bonds, 2000 Series A, 5.500%, 10/01/32
13,525 County of San Bernardino, California, Single Family Mortgage No Opt. Call AAA 17,539,355
Revenue Bonds (GNMA Mortgage-Backed Securities),
1989 Series A, 7.750%, 11/01/14 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 14.8%
10,000 California Pollution Control Financing Authority, Pollution 6/03 at 101.00 BB 9,838,900
Control Revenue Bonds (Southern California Edison Company),
1991 Series, 6.900%, 12/01/17 (Alternative Minimum Tax)
5,000 California Pollution Control Financing Authority, Pollution Control 6/03 at 101.00 B3 4,945,050
Revenue Bonds (Pacific Gas and Electric Company),
1992 Series A, 6.625%, 6/01/09 (Alternative Minimum Tax)
5,000 California Pollution Control Financing Authority, Pollution 4/11 at 102.00 AAA 5,407,250
Control Refunding Revenue Bonds, Pacific Gas and Electric
Company, 1996A Remarketed, 5.350%, 12/01/16 (Alternative
Minimum Tax) - MBIA Insured
9,000 State of California Department of Water Resources, Power 5/12 at 101.00 A3 9,353,970
Supply Revenue Bonds, Series 2002A, 5.125%, 5/01/18
8,000 Department of Water and Power of Los Angeles, California, 7/11 at 100.00 AAA 8,501,600
Power System Revenue Bonds, 2001 Series A1,
5.250%, 7/01/21 - FSA Insured
38
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES (continued)
$ 3,205 City of Redlands, California, Certificates of Participation 3/03 at 100.00 AAA $ 3,220,704
(1993 Refunding of 1986 and 1987 Projects),
6.800%, 3/01/07 - AMBAC Insured
2,410 Sacramento Municipal Utility District, California, Electric 8/12 at 100.00 AAA 2,577,736
Revenue Bonds, 2002 Series Q Refunding, 5.250%, 8/15/21 -
FSA Insured
5,500 Southern California Public Power Authority, Multiple Project No Opt. Call A 6,731,835
Revenue Bonds, 1989 Series, 6.750%, 7/01/11
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 10.5%
California Department of Water Resources, Water System Revenue
Bonds, Central Valley Project, Series 2002Z:
4,105 5.000%, 12/01/16 - FGIC Insured 12/12 at 100.00 AAA 4,428,556
1,450 5.000%, 12/01/19 - FGIC Insured 12/12 at 100.00 AAA 1,535,449
Department of Water and Power of the City of Los Angeles,
California, Water Works Refunding Revenue Bonds, Second Issue of
1993:
4,060 4.500%, 5/15/13 5/03 at 102.00 AA 4,120,007
8,400 4.500%, 5/15/30 - MBIA Insured 5/03 at 102.00 AAA 7,976,052
6,000 City of Los Angeles, California, Wastewater System Revenue 6/08 at 101.00 AAA 6,077,880
Bonds, Series 1998-A, 5.000%, 6/01/28 - FGIC Insured
8,000 Los Angeles County Sanitation Districts Financing Authority, 10/03 at 100.00 AA 8,016,480
California, Capital Projects Revenue Bonds, 1993 Series A
(Senior Ad Valorem Obligation Bonds), 5.000%, 10/01/23
1,090 Marin Municipal Water District, California, Water Revenue 7/12 at 100.00 AAA 1,174,649
Bonds, Series 2002 Refunding, 5.000%, 7/01/16 -
AMBAC Insured
2,000 Metropolitan Water District of Southern California, Water 7/06 at 100.00 AAA 2,011,240
Revenue Refunding Bonds, 1996 Series B, 4.750%, 7/01/21 -
MBIA Insured
500 City of Norco, California, Refunding Certificates of 10/08 at 102.00 AAA 510,696
Participation, Series 1998 (Sewer System and Water System
Improvement Project), 5.125%, 10/01/28 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 534,100 Total Long-Term Investments (cost $488,583,306) - 152.1% 521,279,031
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.9% 6,528,916
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (54.0)% (185,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 342,807,947
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares.
* 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.
** Ratings: Using the higher of Standard & Poor's or Moody's
rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of principal and
interest. Such securities are normally considered to be
equivalent to AAA rated securities.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
# On December 9, 2002, UALCorporation, the holding company of
United Air Lines, Inc. filed for federal bankruptcy
protection. In December 2002, the Adviser determined that it
was likely United would not remain current on its interest
payment obligations with respect to these bonds and thus
stopped accruing interest. At the same time, accrued
interest dating back to October 1, 2002 was written off. On
April 1, 2003, UAL failed to meet its interest payment
obligation.
See accompanying notes to financial statements.
39
Statement of
ASSETS AND LIABILITIES February 28, 2003 (Unaudited)
CALIFORNIA CALIFORNIA CALIFORNIA
CALIFORNIA CALIFORNIA CALIFORNIA INVESTMENT SELECT QUALITY
VALUE PERFORMANCE PLUS OPPORTUNITY QUALITY QUALITY INCOME
(NCA) (NCP) (NCO) (NQC) (NVC) (NUC)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments in municipal
securities,
at market value $252,761,997 $303,821,541 $194,481,443 $322,278,309 $542,339,606 $521,279,031
Cash 1,069,712 5,010,086 1,432,668 682,889 656,418 5,219,710
Receivables:
Interest 3,697,735 3,804,604 2,354,450 4,741,163 7,779,323 8,088,546
Investments sold 5,819,000 10,300 -- -- 3,060,000 725,000
Other assets 14,179 26,077 10,300 22,682 35,029 25,288
------------------------------------------------------------------------------------------------------------------------------------
Total assets 263,362,623 312,672,608 198,278,861 327,725,043 553,870,376 535,337,575
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Payable for investments purchased 4,066,316 6,130,680 4,087,120 -- -- 7,152,460
Accrued expenses:
Management fees 117,540 149,164 95,054 159,172 266,009 254,092
Other 114,070 48,083 55,255 102,389 201,661 106,668
Preferred share dividends payable N/A 7,806 3,209 7,973 6,733 16,408
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 4,297,926 6,335,733 4,240,638 269,534 474,403 7,529,628
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value N/A 106,000,000 68,000,000 112,000,000 192,000,000 185,000,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to
Common shares $259,064,697 $200,336,875 $126,038,223 $215,455,509 $361,395,973 $342,807,947
====================================================================================================================================
Common shares outstanding 25,241,808 12,965,742 8,154,681 13,580,232 23,096,654 21,966,818
====================================================================================================================================
Net asset value per Common share
outstanding (net assets
applicable to Common
shares, divided by
Common shares outstanding) $ 10.26 $ 15.45 $ 15.46 $ 15.87 $ 15.65 $ 15.61
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value
per share $ 252,418 $ 129,657 $ 81,547 $ 135,802 $ 230,967 $ 219,668
Paid-in surplus 237,570,352 181,322,379 113,661,742 189,660,451 322,047,031 305,961,694
Undistributed net investment
income 263,019 1,849,381 1,054,006 2,173,779 3,496,976 3,816,285
Accumulated net realized gain
(loss) from investments 1,408,919 (5,147,691) (3,857,975) 1,979,299 11,431 114,575
Net unrealized appreciation of
investments 19,569,989 22,183,149 15,098,903 21,506,178 35,609,568 32,695,725
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares $259,064,697 $200,336,875 $126,038,223 $215,455,509 $361,395,973 $342,807,947
====================================================================================================================================
Authorized shares:
Common 250,000,000 200,000,000 200,000,000 200,000,000 200,000,000 200,000,000
Preferred N/A 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
====================================================================================================================================
N/A - Fund is not authorized to issue Preferred shares.
See accompanying notes to financial statements.
40
Statement of
OPERATIONS Six Months Ended February 28, 2003 (Unaudited)
CALIFORNIA CALIFORNIA CALIFORNIA
CALIFORNIA CALIFORNIA CALIFORNIA INVESTMENT SELECT QUALITY
VALUE PERFORMANCE PLUS OPPORTUNITY QUALITY QUALITY INCOME
(NCA) (NCP) (NCO) (NQC) (NVC) (NUC)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 7,167,429 $ 7,945,664 $ 4,994,435 $8,588,464 $14,296,675 $14,052,249
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 742,457 965,934 616,052 1,032,557 1,725,009 1,657,528
Preferred shares - auction fees N/A 131,411 84,301 138,849 238,027 229,349
Preferred shares - dividend
disbursing agent fees N/A 14,877 9,918 9,918 14,877 14,877
Shareholders' servicing agent fees
and expenses 28,955 17,318 9,912 15,904 23,970 19,278
Custodian's fees and expenses 31,840 36,952 24,242 33,801 68,591 76,009
Directors' fees and expenses 1,668 2,227 1,222 2,650 3,323 3,854
Professional fees 5,706 18,676 22,163 7,175 9,930 11,653
Shareholders' reports - printing
and mailing expenses 17,964 13,637 8,724 14,182 13,217 20,777
Stock exchange listing fees 8,667 8,181 5,845 8,187 8,191 8,210
Investor relations expense 22,746 21,231 13,472 22,553 36,718 35,528
Other expenses 4,813 18,065 11,380 11,627 17,067 19,098
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian
fee credit 864,816 1,248,509 807,231 1,297,403 2,158,920 2,096,161
Custodian fee credit (5,913) (4,952) (4,627) (1,761) (15,405) (32,670)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 858,903 1,243,557 802,604 1,295,642 2,143,515 2,063,491
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 6,308,526 6,702,107 4,191,831 7,292,822 12,153,160 11,988,758
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
(LOSS) FROM INVESTMENTS
Net realized gain (loss) from
investments 1,409,561 (3,882,680) (2,931,368) 1,979,818 104,750 116,514
Change in net unrealized
appreciation (depreciation)
of investments (1,178,972) 5,380,180 4,425,664 (993,480) 2,554,989 (2,659,028)
------------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) from investments 230,589 1,497,500 1,494,296 986,338 2,659,739 (2,542,514)
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED
SHAREHOLDERS
From net investment income N/A (556,277) (339,306) (573,052) (942,046) (749,795)
From accumulated net realized
gains from investments N/A -- -- (25,327) (25,494) (242,125)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable
to Common shares from
distributions to Preferred
shareholders N/A (556,277) (339,306) (598,379) (967,540) (991,920)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to Common shares
from operations $ 6,539,115 $ 7,643,330 $ 5,346,821 $7,680,781 $13,845,359 $ 8,454,324
====================================================================================================================================
N/A - Fund is not authorized to issue Preferred shares.
See accompanying notes to financial statements.
41
Statement of
CHANGES IN NET ASSETS (Unaudited)
CALIFORNIA VALUE (NCA) CALIFORNIA PERFORMANCE PLUS (NCP) CALIFORNIA OPPORTUNITY (NCO)
--------------------------------- ---------------------------------- -------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
2/28/03 8/31/02 2/28/03 8/31/02 2/28/03 8/31/02
-----------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 6,308,526 $ 12,970,900 $ 6,702,107 $ 13,616,212 $ 4,191,831 $ 8,633,716
Net realized gain (loss) from
investments 1,409,561 931,061 (3,882,680) (1,191,048) (2,931,368) (884,966)
Change in net unrealized
appreciation (depreciation)
of investments (1,178,972) (1,874,743) 5,380,180 1,899,668 4,425,664 852,455
Distributions to Preferred Shareholders:
From net investment income N/A N/A (556,277) (1,237,745) (339,306) (799,037)
From accumulated net realized
gains from investments N/A N/A -- (331,552) -- (180,451)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from operations 6,539,115 12,027,218 7,643,330 12,755,535 5,346,821 7,621,717
-----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (6,584,512) (13,021,072) (5,899,713) (11,571,067) (3,734,029) (7,386,004)
From accumulated net realized gains
from investments (235,826) -- (1,019) (1,228,860) -- (721,943)
-----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable
to Common shares from
distributions to Common
shareholders (6,820,338) (13,021,072) (5,900,732) (12,799,927) (3,734,029) (8,107,947)
-----------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions -- 195,022 -- 996,765 -- 615,883
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (281,223) (798,832) 1,742,598 952,373 1,612,792 129,653
Net assets applicable to Common
shares at the beginning
of period 259,345,920 260,144,752 198,594,277 197,641,904 124,425,431 124,295,778
-----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $259,064,697 $259,345,920 $200,336,875 $198,594,277 $126,038,223 $124,425,431
===================================================================================================================================
Undistributed net investment income
at the end of period $ 263,019 $ 715,310 $ 1,849,381 $ 1,765,348 $ 1,054,006 $ 1,152,354
===================================================================================================================================
N/A - Fund is not authorized to issue Preferred shares.
See accompanying notes to financial statements.
42
CALIFORNIA INVESTMENT CALIFORNIA SELECT CALIFORNIA QUALITY
QUALITY (NQC) QUALITY (NVC) INCOME (NUC)
--------------------------------- ---------------------------------- --------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
2/28/03 8/31/02 2/28/03 8/31/02 2/28/03 8/31/02
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 7,292,822 $ 14,658,460 $ 12,153,160 $ 25,014,840 $ 11,988,758 $ 26,003,615
Net realized gain (loss) from
investments 1,979,818 357,456 104,750 800,399 116,514 2,860,663
Change in net unrealized
appreciation (depreciation)
of investments (993,480) (776,828) 2,554,989 (596,693) (2,659,028) (10,180,699)
Distributions to Preferred
Shareholders:
From net investment income (573,052) (1,461,842) (942,046) (1,957,398) (749,795) (2,239,477)
From accumulated net realized
gains from investments (25,327) (76,061) (25,494) (1,031,350) (242,125) (497,002)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from operations 7,680,781 12,701,185 13,845,359 22,229,798 8,454,324 15,947,100
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (6,233,344) (12,440,677) (10,739,944) (21,024,491) (10,938,589) (21,113,196)
From accumulated net realized gains
from investments (252,596) (277,480) (341,832) (3,647,612) (2,618,427) (1,793,272)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable
to Common shares from
distributions to Common
shareholders (6,485,940) (12,718,157) (11,081,776) (24,672,103) (13,557,016) (22,906,468)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions -- 1,056,710 -- 1,756,813 349,563 1,827,004
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares 1,194,841 1,039,738 2,763,583 (685,492) (4,753,129) (5,132,364)
Net assets applicable to Common
shares at the beginning
of period 214,260,668 213,220,930 358,632,390 359,317,882 347,561,076 352,693,440
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $215,455,509 $214,260,668 $361,395,973 $358,632,390 $342,807,947 $347,561,076
====================================================================================================================================
Undistributed net investment income
at the end of period $ 2,173,779 $ 1,951,532 $ 3,496,976 $ 3,351,259 $ 3,816,285 $ 3,873,126
====================================================================================================================================
See accompanying notes to financial statements.
43
Notes to
FINANCIAL STATEMENTS (Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The California Funds (the "Funds") covered in this report and their
corresponding Common share New York Stock Exchange symbols are Nuveen California
Municipal Value Fund, Inc. (NCA), 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).
Each Fund seeks to provide current income exempt from both regular federal and
California state income taxes by investing primarily in a diversified portfolio
of municipal obligations issued by state and local government authorities within
the state of California. The Funds are registered under the Investment Company
Act of 1940, as amended, as closed-end, diversified management investment
companies.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with
accounting principles generally accepted in the United States.
Securities 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. When price
quotes are not readily available (which is usually the case for municipal
securities), the pricing service establishes fair market value based on yields
or prices of municipal bonds of comparable quality, type of issue, coupon,
maturity and rating, indications of value from securities dealers and general
market conditions. If it is determined that market prices for a security are
unavailable or inappropriate, the Board of Directors of the Funds or its
designee may establish a fair value for the security. Temporary investments in
securities that have variable rate and demand features qualifying them as
short-term securities are valued at amortized cost, which approximates market
value.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery basis
may have extended settlement periods. The securities so purchased are subject to
market fluctuation during this period. The Funds have instructed the custodian
to segregate assets in a separate account with a current value at least equal to
the amount of the when-issued and delayed delivery purchase commitments. At
February 28, 2003, California Value (NCA), California Performance Plus (NCP),
California Opportunity (NCO) and California Quality Income (NUC) had outstanding
when-issued purchase commitments of $4,066,316, $6,130,680, $4,087,120 and
$7,152,460, respectively. 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.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to comply with the requirements of the Internal Revenue Code applicable
to regulated investment companies and to distribute all of its net investment
income to its shareholders. 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 status when distributed
to shareholders of the Funds.
Dividends and Distributions to Common Shareholders
Dividends from tax-exempt net investment income are declared and paid monthly.
Net realized capital gains and/or market discount from investment transactions,
if any, are distributed to shareholders not less frequently than 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 accounting
principles generally accepted in the United States. Accordingly, temporary
over-distributions as a result of these differences may occur and will be
classified as either distributions in excess of net investment income,
distributions in excess of net realized gains and/or distributions in excess of
net ordinary taxable income from investment transactions, where applicable.
44
Preferred Shares
California Value (NCA) is not authorized to issue Preferred shares. The Funds
below have issued and outstanding $25,000 stated value Preferred shares. Each
Fund's Preferred shares are issued in more than one Series. The dividend rate on
each Series may change every seven days, as set pursuant to a dutch auction
process by the auction agent, and is payable at or near the end of each rate
period. 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 -- -- 3,600 -- 1,400
Series T 1,800 -- -- 2,400 --
Series W 640 2,200 880 1,680 3,000
Series TH -- -- -- 3,600 --
Series F 1,800 520 -- -- 3,000
---------------------------------------------------------------------------------------------------------
Total 4,240 2,720 4,480 7,680 7,400
=========================================================================================================
Derivative Financial Instruments
The Funds may invest in certain derivative financial instruments including
futures, forward, swap and option contracts, and other financial instruments
with similar characteristics. Although the Funds are authorized to invest in
such financial instruments, and may do so in the future, they did not make any
such investments during the six months ended February 28, 2003.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by credits earned on each Fund's cash on deposit
with the bank. Such deposit arrangements are an alternative to overnight
investments.
Use of Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States 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.
2. FUND SHARES
Transactions in Common shares were as follows:
CALIFORNIA CALIFORNIA CALIFORNIA
VALUE (NCA) PERFORMANCE PLUS (NCP) OPPORTUNITY (NCO)
----------------------- ---------------------- ----------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
2/28/03 8/31/02 2/28/03 8/31/02 2/28/03 8/31/02
-------------------------------------------------------------------------------------------------------------------
Shares issued to
shareholders due to
reinvestment of distributions -- 19,148 -- 66,524 -- 40,630
===================================================================================================================
CALIFORNIA CALIFORNIA CALIFORNIA
INVESTMENT QUALITY (NQC) SELECT QUALITY (NVC) QUALITY INCOME (NUC)
------------------------ ---------------------- ----------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
2/28/03 8/31/02 2/28/03 8/31/02 2/28/03 8/31/02
-------------------------------------------------------------------------------------------------------------------
Shares issued to
shareholders due to
reinvestment of distributions -- 67,899 -- 114,746 21,573 114,647
===================================================================================================================
3. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities and short-term securities during the six months ended February 28,
2003, 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)
-------------------------------------------------------------------------------------------------------------
Purchases:
Long-term municipal
securities $19,237,404 $19,836,618 $14,008,091 $15,401,261 $54,211,353 $85,809,998
Short-term securities 6,000,000 3,240,000 1,000,000 -- 24,350,000 19,190,000
Sales and maturities:
Long-term municipal
securities 18,008,896 19,883,362 11,475,998 17,741,945 49,028,724 72,770,028
Short-term securities 6,250,000 3,240,000 1,800,000 -- 25,850,000 19,190,000
=============================================================================================================
45
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
4. 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 income on taxable market
discount securities and timing differences in recognizing certain gains and
losses on security transactions.
At February 28, 2003, the cost of investments 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)
------------------------------------------------------------------------------------------------------------------
Cost of investments $232,954,375 $280,886,959 $178,988,662 $300,304,279 $506,216,178 $487,848,963
==================================================================================================================
Gross unrealized appreciation and gross unrealized depreciation on investments
at February 28, 2003, 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)
------------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $21,389,036 $24,901,263 $16,924,130 $22,691,704 $36,736,074 $42,014,246
Depreciation (1,581,414) (1,966,681) (1,431,349) (717,674) (612,646) (8,584,178)
-------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation
on investments $19,807,622 $22,934,582 $15,492,781 $21,974,030 $36,123,428 $33,430,068
==================================================================================================================
The tax components of undistributed net investment income and net realized gains
at August 31, 2002, the Funds' last fiscal 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 tax-exempt
income $1,258,249 $1,754,990 $1,093,237 $2,215,583 $4,322,767 $4,657,527
Undistributed ordinary
income * 72,124 113,847 43,789 -- -- 62,977
Undistributed net long-term
capital gains 235,184 56 -- 277,404 274,007 2,795,636
==================================================================================================================
The tax character of distributions paid during the fiscal year ended August 31,
2002, the Funds' last fiscal year end, were 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
(NCA) (NCP) (NCO) (NQC) (NVC) (NUC)
------------------------------------------------------------------------------------------------------------------
Distributions from
tax-exempt income $13,020,248 $12,807,468 $8,165,338 $13,898,261 $22,973,189 $23,237,953
Distributions from
ordinary income * -- -- 55,848 -- 6,000 171,733
Distributions from net
long-term capital gains -- 1,560,412 862,522 353,541 4,672,962 2,154,469
==================================================================================================================
* Ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
46
The following Funds have elected to defer net realized losses from investments
incurred from November 1, 2001 through August 31, 2002 ("post-October losses")
in accordance with Federal income tax regulations. The following post-October
losses are treated as having arisen in the following year:
CALIFORNIA
PERFORMANCE CALIFORNIA
PLUS OPPORTUNITY
(NCP) (NCO)
--------------------------------------------------------------------------------
$1,264,054 $926,607
================================================================================
5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under the Funds' (excluding California Value (NCA)) investment management
agreements with Nuveen Advisory Corp. (the "Adviser"), a wholly owned subsidiary
of Nuveen Investments, Inc. (formerly, The John Nuveen Company), each Fund pays
an annual management fee, payable monthly, at the rates set forth below, which
are based upon the average daily net assets (including net assets attributable
to Preferred shares) of each Fund as follows:
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS
ATTRIBUTABLE TO PREFERRED SHARES) MANAGEMENT FEE
--------------------------------------------------------------------------------
For the first $125 million .6500%
For the next $125 million .6375
For the next $250 million .6250
For the next $500 million .6125
For the next $1 billion .6000
For the next $3 billion .5875
For net assets over $5 billion .5750
================================================================================
Under California Value's (NCA) investment management agreement with the Adviser,
the Fund pays an annual management fee, payable monthly of .35 of 1% of the
average daily net assets of the Fund, as well as 4.125% of the gross interest
income of the Fund.
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 who are affiliated with the
Adviser or to their officers, all of whom receive remuneration for their
services to the Funds from the Adviser.
6. SUBSEQUENT EVENT - DISTRIBUTIONS TO COMMON SHAREHOLDERS
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on April 1, 2003, to shareholders of record on
March 15, 2003, as follows:
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
CALIFORNIA PERFORMANCE CALIFORNIA INVESTMENT SELECT QUALITY
VALUE PLUS OPPORTUNITY QUALITY QUALITY INCOME
(NCA) (NCP) (NCO) (NQC) (NVC) (NUC)
------------------------------------------------------------------------------------------------------------------
Dividend per share $.0415 $.0775 $.0755 $.0795 $.0795 $.0830
==================================================================================================================
47
Financial
HIGHLIGHTS (Unaudited)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
--------------------------------------------------------------- ------------------------------
Distributions Distributions
from Net from Net
Beginning Net Investment Capital Investment Capital
Common Realized/ Income to Gains to Income to Gains to
Share Net Unrealized Preferred Preferred Common Common
Net Asset Investment Investment Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
CALIFORNIA VALUE (NCA)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2003(a) $10.27 $ .25 $ .01 $N/A $N/A $ .26 $ (.26) $(.01) $ (.27)
2002 10.31 .51 (.03) N/A N/A .48 (.52) -- (.52)
2001 9.85 .51 .47 N/A N/A .98 (.52) -- (.52)
2000 9.73 .51 .12 N/A N/A .63 (.51) -- (.51)
1999 10.38 .50 (.60) N/A N/A (.10) (.50) (.05) (.55)
1998 10.09 .53 .34 N/A N/A .87 (.53) (.05) (.58)
CALIFORNIA PERFORMANCE PLUS (NCP)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2003(a) 15.32 .52 .11 (.04) -- .59 (.46) -- (.46)
2002 15.32 1.05 .07 (.10) (.03) .99 (.89) (.10) (.99)
2001 14.96 1.12 .44 (.25) (.01) 1.30 (.90) (.04) (.94)
2000 14.85 1.22 .11 (.26) -- 1.07 (.96) -- (.96)
1999 15.98 1.20 (1.05) (.20) (.01) (.06) (1.00) (.05) (1.05)
1998 15.67 1.23 .36 (.23) -- 1.36 (1.03) (.02) (1.05)
CALIFORNIA OPPORTUNITY (NCO)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2003(a) 15.26 .51 .19 (.04) -- .66 (.46) -- (.46)
2002 15.32 1.06 -- (.10) (.02) .94 (.91) (.09) (1.00)
2001 14.97 1.14 .48 (.23) (.03) 1.36 (.92) (.09) (1.01)
2000 15.06 1.25 (.07) (.29) -- .89 (.98) -- (.98)
1999 16.48 1.21 (1.25) (.19) (.03) (.26) (1.01) (.12) (1.13)
1998 16.04 1.23 .45 (.22) -- 1.46 (1.01) (.01) (1.02)
====================================================================================================================================
Total Returns
-------------------
Based
Offering on
Costs and Ending Common
Preferred Common Based Share
Share Share Ending on Net
Underwriting Net Asset Market Market Asset
Discounts Value Value Value** Value**
========================================================================================
CALIFORNIA VALUE (NCA)
----------------------------------------------------------------------------------------
Year Ended 8/31:
2003(a) $-- $10.26 $ 9.9000 2.26% 2.57%
2002 -- 10.27 9.9500 6.61 4.80
2001 -- 10.31 9.8300 11.41 10.20
2000 -- 9.85 9.3125 6.80 6.80
1999 -- 9.73 9.2500 (.43) (1.13)
1998 -- 10.38 9.8125 2.11 8.90
CALIFORNIA PERFORMANCE PLUS (NCP)
----------------------------------------------------------------------------------------
Year Ended 8/31:
2003(a) -- 15.45 14.3500 (1.27) 3.88
2002 -- 15.32 15.0000 1.11 6.84
2001 -- 15.32 15.8500 7.88 9.13
2000 -- 14.96 15.6250 (1.56) 7.68
1999 (.02) 14.85 16.9375 (.12) (.66)
1998 -- 15.98 18.0000 10.74 8.93
CALIFORNIA OPPORTUNITY (NCO)
----------------------------------------------------------------------------------------
Year Ended 8/31:
2003(a) -- 15.46 14.2600 (3.32) 4.38
2002 -- 15.26 15.2200 (.26) 6.51
2001 -- 15.32 16.3000 8.65 9.51
2000 -- 14.97 16.0000 1.14 6.33
1999 (.03) 15.06 16.8750 2.10 (1.97)
1998 -- 16.48 17.6250 11.99 9.36
========================================================================================
Ratios/Supplemental Data
------------------------------------------------------------------------------------------
Before Credit After Credit***
----------------------------- ------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Ending Expenses Income to Expenses Income to
Net to Average Average to Average Average
Assets Net Assets Net Assets Net Assets Net Assets
Applicable Applicable Applicable Applicable Applicable Portfolio
to Common to Common to Common to Common to Common Turnover
Shares (000) Shares++ Shares++ Shares++ Shares++ Rate
===================================================================================================================
CALIFORNIA VALUE (NCA)
-------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2003(a) $259,065 .68%* 4.93%* .67%* 4.93%* 7%
2002 259,346 .68 5.06 .68 5.07 4
2001 260,145 .70 5.14 .69 5.15 7
2000 248,375 .70 5.42 .69 5.43 36
1999 245,456 .69 4.89 .69 4.90 35
1998 261,912 .71 5.19 .71 5.19 40
CALIFORNIA PERFORMANCE PLUS (NCP)
-------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2003(a) 200,337 1.27* 6.81* 1.26* 6.82* 7
2002 198,594 1.28 7.04 1.27 7.05 11
2001 197,642 1.26 7.57 1.25 7.59 27
2000 191,957 1.30 8.48 1.28 8.49 38
1999 189,328 1.19 7.67 1.19 7.67 26
1998 202,333 1.18 7.76 1.18 7.76 20
CALIFORNIA OPPORTUNITY (NCO)
-------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2003(a) 126,038 1.31* 6.78* 1.30* 6.79* 6
2002 124,425 1.30 7.13 1.29 7.14 11
2001 124,296 1.30 7.68 1.28 7.69 31
2000 120,794 1.29 8.62 1.28 8.64 24
1999 120,856 1.19 7.50 1.18 7.51 37
1998 131,433 1.17 7.52 1.17 7.52 18
===================================================================================================================
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 8/31:
2003(a) $ N/A $ N/A $ N/A
2002 N/A N/A N/A
2001 N/A N/A N/A
2000 N/A N/A N/A
1999 N/A N/A N/A
1998 N/A N/A N/A
CALIFORNIA PERFORMANCE PLUS (NCP)
---------------------------------------------------------------
Year Ended 8/31:
2003(a) 106,000 25,000 72,249
2002 106,000 25,000 71,838
2001 106,000 25,000 71,614
2000 106,000 25,000 70,273
1999 106,000 25,000 69,653
1998 90,000 25,000 81,204
CALIFORNIA OPPORTUNITY (NCO)
---------------------------------------------------------------
Year Ended 8/31:
2003(a) 68,000 25,000 71,338
2002 68,000 25,000 70,745
2001 68,000 25,000 70,697
2000 68,000 25,000 69,410
1999 68,000 25,000 69,432
1998 55,000 25,000 84,742
===============================================================
N/A Fund is not authorized to issue Preferred shares.
* Annualized.
** Total Investment Return on Market Value is the combination of reinvested
dividend income, reinvested capital gains distributions, if any, and
changes in stock price per share. Total Return on Common Share Net Asset
Value is the combination of reinvested dividend income, reinvested capital
gains distributions, if any, and changes in Common share net asset value
per share. Total returns are not annualized.
*** After custodian fee credit, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares, where applicable.
(a) For the six months ended February 28, 2003.
See accompanying notes to financial statements.
48-49 SPREAD
Financial HIGHLIGHTS (Unaudited) (continued)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
--------------------------------------------------------------- ------------------------------
Distributions Distributions
from Net from Net
Beginning Net Investment Capital Investment Capital
Common Realized/ Income to Gains to Income to Gains to
Share Net Unrealized Preferred Preferred Common Common
Net Asset Investment Investment Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
CALIFORNIA INVESTMENT QUALITY (NQC)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2003(a) $15.78 $ .54 $ .07 $(.04) $ -- $ .57 $(.46) $(.02) $ (.48)
2002 15.78 1.08 (.02) (.11) (.01) .94 (.92) (.02) (.94)
2001 14.83 1.15 .97 (.25) -- 1.87 (.92) -- (.92)
2000 14.83 1.24 (.04) (.27) -- .93 (.93) -- (.93)
1999 16.03 1.15 (1.14) (.19) (.01) (.19) (.95) (.03) (.98)
1998 15.70 1.18 .36 (.22) -- 1.32 (.99) -- (.99)
CALIFORNIA SELECT QUALITY (NVC)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2003(a) 15.53 .53 .11 (.04) -- .60 (.47) (.01) (.48)
2002 15.63 1.08 .01 (.08) (.04) .97 (.91) (.16) (1.07)
2001 14.90 1.18 .72 (.26) -- 1.64 (.91) -- (.91)
2000 14.80 1.21 .11 (.28) -- 1.04 (.94) -- (.94)
1999 16.02 1.15 (1.09) (.18) (.02) (.14) (.95) (.11) (1.06)
1998 15.65 1.16 .41 (.21) -- 1.36 (.97) (.02) (.99)
CALIFORNIA QUALITY INCOME (NUC)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2003(a) 15.84 .55 (.12) (.03) (.01) .39 (.50) (.12) (.62)
2002 16.16 1.19 (.35) (.10) (.02) .72 (.96) (.08) (1.04)
2001 15.41 1.21 .75 (.26) -- 1.70 (.94) (.01) (.95)
2000 15.28 1.23 .16 (.29) -- 1.10 (.97) -- (.97)
1999 16.37 1.17 (1.04) (.20) -- (.07) (.98) (.02) (1.00)
1998 15.86 1.18 .54 (.23) -- 1.49 (.98) -- (.98)
====================================================================================================================================
Total Returns
-------------------
Based
Offering on
Costs and Ending Common
Preferred Common Based Share
Share Share Ending on Net
Underwriting Net Asset Market Market Asset
Discounts Value Value Value** Value**
========================================================================================
CALIFORNIA INVESTMENT QUALITY (NQC)
----------------------------------------------------------------------------------------
Year Ended 8/31:
2003(a) $-- $15.87 $14.6000 (2.88)% 3.66%
2002 -- 15.78 15.5200 (.55) 6.28
2001 -- 15.78 16.5800 12.54 13.09
2000 -- 14.83 15.6250 2.91 6.69
1999 (.03) 14.83 16.1875 1.67 (1.54)
1998 -- 16.03 16.8750 8.39 8.66
CALIFORNIA SELECT QUALITY (NVC)
----------------------------------------------------------------------------------------
Year Ended 8/31:
2003(a) -- 15.65 14.7700 (1.64) 3.93
2002 -- 15.53 15.5100 2.79 6.61
2001 -- 15.63 16.1800 10.70 11.43
2000 -- 14.90 15.5000 2.96 7.47
1999 (.02) 14.80 16.0625 2.15 (1.20)
1998 -- 16.02 16.7500 8.11 8.93
CALIFORNIA QUALITY INCOME (NUC)
----------------------------------------------------------------------------------------
Year Ended 8/31:
2003(a) -- 15.61 15.3600 (1.03) 2.51
2002 -- 15.84 16.1400 4.15 4.79
2001 -- 16.16 16.5500 8.51 11.44
2000 -- 15.41 16.1875 3.83 7.64
1999 (.02) 15.28 16.6250 1.37 (.72)
1998 -- 16.37 17.3750 13.29 9.65
========================================================================================
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------
Before Credit After Credit***
----------------------------- ------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Ending Expenses Income to Expenses Income to
Net to Average Average to Average Average
Assets Net Assets Net Assets Net Assets Net Assets
Applicable Applicable Applicable Applicable Applicable Portfolio
to Common to Common to Common to Common to Common Turnover
Shares (000) Shares++ Shares++ Shares++ Shares++ Rate
===================================================================================================================
CALIFORNIA INVESTMENT QUALITY (NQC)
-------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2003(a) $215,456 1.22%* 6.88%* 1.22%* 6.88%* 5%
2002 214,261 1.25 7.03 1.23 7.04 11
2001 213,221 1.25 7.64 1.23 7.65 34
2000 199,258 1.25 8.65 1.24 8.66 18
1999 198,360 1.19 7.28 1.19 7.29 18
1998 213,108 1.15 7.45 1.15 7.45 21
CALIFORNIA SELECT QUALITY (NVC)
-------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2003(a) 361,396 1.22* 6.83* 1.21* 6.84* 9
2002 358,632 1.23 7.14 1.22 7.15 19
2001 359,318 1.24 7.81 1.22 7.83 29
2000 340,791 1.27 8.39 1.25 8.40 20
1999 337,344 1.14 7.35 1.13 7.35 7
1998 362,671 1.11 7.35 1.11 7.35 17
CALIFORNIA QUALITY INCOME (NUC)
-------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2003(a) 342,808 1.23* 7.03* 1.21* 7.05* 14
2002 347,561 1.23 7.58 1.22 7.59 22
2001 352,693 1.23 7.77 1.21 7.78 18
2000 335,148 1.22 8.28 1.21 8.29 21
1999 331,062 1.14 7.26 1.13 7.26 11
1998 353,000 1.12 7.34 1.12 7.34 11
===================================================================================================================
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 8/31:
2003(a) $112,000 $25,000 $73,093
2002 112,000 25,000 72,826
2001 112,000 25,000 72,594
2000 112,000 25,000 69,477
1999 112,000 25,000 69,277
1998 90,000 25,000 84,197
CALIFORNIA SELECT QUALITY (NVC)
---------------------------------------------------------------
Year Ended 8/31:
2003(a) 192,000 25,000 72,057
2002 192,000 25,000 71,697
2001 192,000 25,000 71,786
2000 192,000 25,000 69,374
1999 192,000 25,000 68,925
1998 150,000 25,000 85,445
CALIFORNIA QUALITY INCOME (NUC)
---------------------------------------------------------------
Year Ended 8/31:
2003(a) 185,000 25,000 71,325
2002 185,000 25,000 71,968
2001 185,000 25,000 72,661
2000 185,000 25,000 70,290
1999 185,000 25,000 69,738
1998 150,000 25,000 83,833
===============================================================
* Annualized.
** Total Investment Return on Market Value is the combination of reinvested
dividend income, reinvested capital gains distributions, if any, and
changes in stock price per share. Total Return on Common Share Net Asset
Value is the combination of reinvested dividend income, reinvested capital
gains distributions, if any, and changes in Common share net asset value
per share. Total returns are not annualized.
*** After custodian fee credit, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares, where applicable.
(a) For the six months ended February 28, 2003.
See accompanying notes to financial statements.
50-51
Build Your Wealth
AUTOMATICALLY
Sidebar text:
NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET UP YOUR
REINVESTMENT ACCOUNT.
NUVEEN CLOSED-END EXCHANGE-TRADED FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End Exchange-Traded 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
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. 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
shares may increase before purchases are completed, the average purchase price
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.
FLEXIBILITY
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.
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.
52
Fund
INFORMATION
BOARD OF DIRECTORS
Robert P. Bremner
Lawrence H. Brown
Anne E. Impellizzeri
Peter R. Sawers
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
FUND MANAGER
Nuveen Advisory Corp.
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Morgan, Lewis &
Bockius LLP
Washington, D.C.
INDEPENDENT AUDITORS
Ernst & Young LLP
Chicago, IL
POLICY CHANGE
On November 14, 2002, the Board adopted a policy that allows these Funds, in
addition to investments in municipal bonds, to invest up to 5% of its net assets
(including assets attributable to preferred shares, if any) in tax-exempt or
taxable fixed-income securities or equity securities for the purpose of
acquiring control of an issuer whose municipal bonds (a) the Fund already owns
and (b) have deteriorated or are expected shortly to deteriorate significantly
in credit quality, provided Nuveen Advisory determines that such investment
should enable the Fund to better maximize the value of its existing investment
in such issuer. This policy is a non-fundamental policy of each Fund which means
that it can be changed at any time by the Board of Directors without vote of the
shareholders.
GLOSSARY OF TERMS USED IN THIS REPORT
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 (including change in NAV and reinvested dividends) that
would have been necessary on an annual basis to equal the investment's actual
performance over the time period being considered.
Average Duration: Duration is a measure of a bond or bond fund's sensitivity to
changes in interest rates. Generally, the longer a bond or fund's duration, the
more the price of the bond or fund will change as interest rates change.
Average Effective Maturity: The average of all the maturities of the bonds in a
fund's portfolio, computed by weighting each maturity date (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.
Leverage-Adjusted Duration: Duration is a measure of a bond or bond fund's
sensitivity to changes in interest rates. Generally, the longer a bond 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 generally longer than the duration of the actual
portfolio of individual bonds that make up the Fund
Market Yield (also known as Dividend Yield or Current Yield): An investment's
current annualized dividend divided by its current market price.
Net Asset Value (NAV): A fund's NAV is calculated by subtracting the liabilities
of the fund from its total assets and then dividing the remainder by the number
of shares outstanding. Fund NAVs are calculated at the end of each business day.
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.
---------
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the six-month period ended February 28, 2003. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
53
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.
A premier asset management firm managing $80 billion in assets, Nuveen
Investments offers access to a number of different asset classes and investing
solutions through a variety of products. Nuveen Investments markets its
capabilities under four distinct brands: Nuveen, a leader in tax-free
investments; NWQ, a leader in value-style equities; Rittenhouse, a leader in
growth-style equities; and Symphony, a leading institutional manager of
market-neutral alternative investment portfolios
To learn more about the products and services Nuveen Investments offers and for
a prospectus, where applicable, talk to your financial advisor, or call us at
(800) 257-8787. Please read the information carefully before you invest.
Distributed by
NUVEEN INVESTMENTS, LLC | 333 West Wacker Drive | Chicago, Illinois 60606 |
www.nuveen.com
ESA-A-0203D