UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-5235
---------------------
Nuveen California Municipal Value Fund, Inc.
------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Jessica R. Droeger
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
-------------------
Date of fiscal year end: August 31
------------------
Date of reporting period: August 31, 2005
------------------
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
ANNUAL REPORT August 31, 2005
Nuveen Investments
Municipal Closed-End
Exchange-Traded
Funds
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
NUVEEN CALIFORNIA QUALITY INCOME MUNICIPAL FUND, INC.
NUC
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Photo of: Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
Chairman's
LETTER TO SHAREHOLDERS
Once again, I am pleased to report that over the 12-month period covered by this
report your Fund continued to provide you with monthly income free from federal
and state income taxes, as well as with an attractive total return. For more
details about the management strategy and performance of your Fund, please see
the Portfolio Manager's Comments and Performance Overview sections of this
report.
Given the continued strength of the California economy, some market commentators
are speculating about whether longer-term interest rates will soon begin to rise
substantially, mirroring the rise that has taken place in shorter-term rates. If
longer-term rates do begin to rise significantly, some have suggested that this
would be a signal to begin adjusting your holdings of fixed-income investments.
"IN FACT, A WELL-DIVERSIFIED PORTFOLIO MAY ACTUALLY HELP TO REDUCE YOUR OVERALL
INVESTMENT RISK OVER THE LONG TERM."
Nobody knows what the market will do in the future or what investments will turn
out to be tomorrow's best performers. But from our experience, we do know that a
well-balanced portfolio, structured and carefully monitored with the help of a
trusted investment professional, can be an important component in helping you
achieve your long-term financial goals. In fact, a well-diversified portfolio
may actually help to reduce your overall investment risk over the long term.
That is one reason why we believe that a municipal bond investment like your
Fund can be an important building block in a comprehensive investment program
designed to perform well in a variety of market conditions.
As an added convenience for you, I 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 instructions.
Earlier in 2005, The St. Paul Travelers Companies, Inc., which owned 79% of
Nuveen Investments, Inc. (the parent of your Fund's investment adviser), sold a
substantial portion of its stake in Nuveen. More recently, St. Paul sold the
balance of its shares to Nuveen Investments or to others. Please be assured that
these transactions only affect Nuveen's corporate structure, and they do not
have any impact on the investment objectives or management of your Fund.
At Nuveen Investments, our mission continues to be to assist you and your
financial advisor by offering investment services and products that can help you
to secure your financial objectives. We are grateful that you have chosen us as
a partner as you pursue your financial goals, and we look forward to continuing
to earn your trust in the months and years ahead.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
October 15, 2005
Nuveen California Municipal Closed-End Exchange-Traded Funds
(NCA, NCP, NCO, NQC, NVC, NUC)
Portfolio Manager's
COMMENTS
Portfolio manager Scott Romans discusses the economic and municipal market
environments, key investment strategies and the Funds' annual performance.
Scott, who joined Nuveen in 2000, has managed these six Funds since 2003.
WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE ANNUAL
REPORTING PERIOD ENDED AUGUST 31, 2005?
Between September 1, 2004 and August 31, 2005, the Federal Reserve implemented
eight separate one-quarter-point increases in the closely-watched fed funds
rate. These increases, which were aimed at controlling economic growth as well
as the pace of inflation, raised this short-term target rate to 3.50% from
1.50%. (On September 20, 2005, following the close of this reporting period, the
fed funds rate was increased by another 0.25% to 3.75%.) As the fed funds rate
rose during this reporting period, shorter-term municipal market interest rates
showed a corresponding increase.
At the same time, longer-term interest rates remained steady or slightly
declined over this 12-month period. The yield on the benchmark 10-year U.S.
Treasury note ended August 2005 at 4.02%, compared with 4.12% one year earlier.
In the municipal market, with the yield on the Bond Buyer 25 Revenue Bond Index,
a widely followed measure of longer-term municipal market rates, declining by
approximately 25 basis points to 4.83% during this period. Together, the rise in
shorter-term rates and decline in longer rates produced an overall flattening of
the yield curve, which generally helped the performance of bonds with longer
effective maturities while hindering the total return of bonds with shorter
maturities or short call dates.
Despite a surge in energy prices over this reporting period, the ongoing
national economic expansion managed to maintain fairly solid footing. After
expanding at an annualized rate of 4.0% in the third quarter of 2004, the U.S.
gross domestic product (GDP) grew by 3.3% (annualized) in the fourth quarter of
2004, 3.8% (annualized) in the first quarter of 2005 and 3.3% (annualized) in
the second quarter of 2005.
Over the 12 months ended August 31, 2005, municipal bond supply nationwide
remained strong, with $392.8 billion in new securities coming to market. A major
factor behind the
4
increase in supply was the flatter yield curve, which made advance refundings
economically attractive for many issuers. During January-August 2005, advance
refundings were 62% higher than during the same period in 2004, as issuers
sought to take advantage of the relatively low rates prevalent at the longer-end
of the yield curve. (Advance refundings, also called pre-refundings, occur when
an issuer sells new bonds and uses the proceeds to fund principal and interest
payments of older, existing bonds. This process often results in lower borrowing
costs for bond issuers.)
HOW ABOUT ECONOMIC AND MARKET CONDITIONS IN CALIFORNIA?
During this reporting period, California's economy experienced continued job
growth that outpaced the national rate. Gains in professional and business
services, construction, leisure and hospitality, education and health services
led the way, overshadowing small losses in the government sector and in natural
resources and mining. As of August 2005, California's unemployment rate was
5.2%, down from 6.1% in August 2004. The state's recent economic expansion has
led to strong growth in both personal and corporate income, which in turn
generated higher tax revenues. While this revenue increase helped California
reduce its budget deficit, the state continued to face a structural budget gap
estimated at $5 billion for fiscal 2006.
In July 2005, both Moody's and Fitch upgraded their ratings on California's
general obligation debt--to A2 from A3 and to A from A-, respectively. (Standard
and Poor's had upgraded its California GO rating to A from BBB in August 2004.)
In announcing the upgrades, both Moody's and Fitch cited the improvements in
revenue generation and the resolution of the state's liquidity problems
following California's issuance of economic recovery bonds in May 2004.
For the 12 months ended August 2005, municipal issuance in California totaled
$49.8 billion, a decrease of 15% from the previous 12 months. Despite the
decrease, California issuance continued to lead all states over this time
period.
5
WHAT KEY STRATEGIES WERE USED TO MANAGE THE FUNDS DURING THE 12 MONTHS ENDED
AUGUST 31, 2005?
One of our top priorities during this reporting period was careful duration
management. Duration is a measure of a bond's price sensitivity as interest
rates change, with longer duration bonds being more sensitive to changes and
thereby presenting greater interest rate risk. Duration management became
increasingly important during the first half of 2005, as the flattening of the
yield curve over this period resulted in a dramatic rise in advance refundings.
(The yield curve is said to flatten when shorter-term interest rates more
closely approach the levels of longer-term interest rates.)
Advance refunding of bonds held by the Funds generally had an immediate,
positive impact on their performances, as well as a shortening effect on the
Funds' durations. In order to maintain these durations within our preferred
strategic range, we sold some of our holdings with shorter durations, including
short-dated pre-refunded bonds, bonds that were currently callable, and bonds
priced to short calls, all of which tended to underperform in the interest rate
environment of the past 12 months.
The proceeds from the sale of those holdings were reinvested in longer duration
bonds, including zero coupon non-callable bonds, fixed-rate non-callable bonds,
and 30-year bonds with at least 10 years of call protection. The longer
durations of these bonds enabled us to counteract some of the duration
shortening caused by the advance refundings and contributed to the positive Fund
performance during this period. The purchase of these types of bonds also
allowed us to improve the Funds' call protection.
In addition, we tried to maintain the Funds' exposures to lower-rated credits.
Lower-rated bonds generally performed very well during this period, and this
resulted in considerable demand for the relatively light issuance of lower-rated
credits that were available. As a result, we did not find many attractive
opportunities to purchase lower-rated bonds that we believed would add value.
One example of a lower-rated credit that did meet our purchase criteria during
this period was a BBB+ rated issue from the California Statewide Community
Development Authority for the Daughters of Charity Health System. These bonds
were added to the portfolios of all six of these Funds.
6
HOW DID THE FUNDS PERFORM?
Individual results for these Funds, as well as for a comparative index and peer
group average, are presented in the accompanying table.
ANNUALIZED TOTAL RETURNS ON NET ASSET VALUE
For periods ended 8/31/05
1-YEAR 5-YEAR 10-YEAR
--------------------------------------------------------------------------------
NCA1 6.82% 6.35% 5.87%
--------------------------------------------------------------------------------
NCP 8.89% 7.78% 6.98%
--------------------------------------------------------------------------------
NCO 9.19% 8.11% 6.99%
--------------------------------------------------------------------------------
NQC 8.18% 7.98% 6.88%
--------------------------------------------------------------------------------
NVC 9.33% 8.26% 7.32%
--------------------------------------------------------------------------------
NUC 10.57% 7.76% 7.36%
--------------------------------------------------------------------------------
Lehman Brothers CA
Tax-Exempt
Bond Index2 5.67% 6.30% 6.50%
--------------------------------------------------------------------------------
Lipper CA
Municipal Debt
Funds Average3 10.50% 7.80% 7.08%
--------------------------------------------------------------------------------
Past performance is not predictive of future results. Current performance may be
higher or lower than the data shown. Returns do not reflect the deduction of
taxes that shareholders may have to pay on Fund distributions or upon the sale
of Fund shares.
For additional information, see the individual Performance Overview for your
Fund in this report.
For the 12 months ended August 31, 2005, the total returns on net asset value
(NAV) for all six of the Funds in this report exceeded the return on the Lehman
Brothers California Tax-Exempt Bond Index. NUC also outperformed the average
return for the Lipper California Fund peer group, while the remaining five Funds
trailed this measure.
One of the primary factors benefiting the 12-month performance of NCP, NCO, NQC,
NVC and NUC relative to that of the unleveraged Lehman Brothers index was the
Funds' use of financial leverage. While leveraging can add volatility to a
Fund's NAV and share especially during periods when interest rates rise, this
strategy can also provide opportunities for additional income and total return
for common shareholders when short-term interest rates remain relatively low and
long-term rates fall or remain constant. NCA does not use financial leverage,
and this was the primary reason this Fund's return trailed the others during
this reporting period.
1 NCA is an unleveraged Fund; the remaining five Funds in this report are
leveraged.
2 The Lehman Brothers California Tax-Exempt Bond Index is an unleveraged,
unmanaged index comprising a broad range of investment-grade California
municipal bonds. Results for the Lehman index do not reflect any expenses.
3 The Lipper California Municipal Debt Funds category average is calculated
using the returns of all closed-end exchange-traded funds in this category
for each period as follows: 1 year, 27 funds; 5 years, 16 funds; and 10
years, 14 funds. Fund and Lipper returns assume reinvestment of dividends.
7
All of these Funds benefited from their allocations of lower-quality bonds
during this period, as bonds rated BBB or lower and non-rated bonds generally
outperformed higher rated issues. Among the lower-rated bonds making significant
contributions to the Funds' total returns for this period were bonds backed by
the 1998 master tobacco settlement agreement. Some of these California tobacco
bonds posted returns of more than 20% over this period. Overall, tobacco bonds
were the top-performing sector for the period, as the litigation environment
improved and increased demand drove prices higher. The Funds' tobacco holdings,
which are rated BBB and Baa3, accounted for 1% of the portfolio of NVC, 2% of
NCA, 3% of NCP and NCO, and 5% of NUC as of August 31, 2005. NQC held less than
1% of its portfolio in tobacco bonds, which was a large part of the reason this
Fund's return was less than the other Funds over this period.
Another factor affecting the Funds' performances during this period was the
amount and timing of advance refundings within their portfolios. Generally, a
bond that was advance refunded tended to benefit from an immediate price
increase as its credit quality was upgraded. However, that same bond - now
priced as a high quality issue to a shorter final maturity - might then have
underperformed lower quality issues and issues with longer final maturities over
the balance of the reporting period. Therefore, the size of the holding, the
credit quality benefit caused by the pre-refunding and the amount of time
remaining before the end of the reporting period all had an impact on the
overall performance of a pre-refunded bond.
Among the pre-refundings that generally helped performance over this period were
bonds issued by California Health Facilities Financing Authority for
Cedars-Sinai Medical Center. These bonds were held by all six Funds, and some of
the positions were significant.
8
HOW WERE THE FUNDS POSITIONED IN TERMS OF CREDIT QUALITY AND BOND CALLS AS OF
AUGUST 31, 2005?
We continued to believe that maintaining strong credit quality was an important
requirement. As of August 31, 2005, all of these Funds offered excellent credit
quality, with allocations of bonds rated AAA/U.S. guaranteed and AA ranging from
64% in NCA to 75% in NCP, 76% in NCO and NVC, 77% in NUC, and 78% in NQC.
As of August 31, 2005, potential call exposure for the period from September
2005 through the end of 2006 ranged from 9% in NQC to 10% in NVC, 11% in NCP and
NUC, 13% in NCA and 14% in NCO. The number of actual bond calls in all of these
Funds depends largely on future market interest rates.
9
Dividend and Share Price
INFORMATION
All of the Funds in this report except NCA use leverage to enhance their
opportunities to earn additional income for common shareholders. The extent of
this benefit is tied in part to the short-term rates these leveraged Funds pay
their MuniPreferred(R) shareholders. During periods of low short-term rates,
leveraged Funds generally pay lower dividends to their MuniPreferred
shareholders, which can leave more earnings to support common share dividends.
However, when short-term interest rates rise, as they did during this reporting
period, the Funds' borrowing costs also rise. While leveraging still provided
benefits for common shareholders over this period, the extent of these benefits
was reduced. This resulted in one monthly dividend reduction in NCO and NVC and
two in NCP, NQC and NUC over the 12-month period ended August 31, 2005. The
dividend of NCA remained stable throughout this reporting period.
In addition, due to normal portfolio activity, common shareholders of the
following Funds received capital gains and net ordinary income distributions at
the end of December 2004 as follows:
LONG-TERM CAPITAL GAINS ORDINARY INCOME
(PER SHARE) (PER SHARE)
--------------------------------------------------------------------------------
NCA $0.0800 $0.0057
--------------------------------------------------------------------------------
NCP $0.1714 $ --
--------------------------------------------------------------------------------
NQC $0.1057 $ --
--------------------------------------------------------------------------------
NVC $0.1003 $0.0120
--------------------------------------------------------------------------------
NUC $0.0793 $ --
--------------------------------------------------------------------------------
The relatively large distributions from these Funds represented an important
part of these Funds' total returns for this period. For the most part, these
distributions were generated by bond calls or by sales of appreciated
securities. The proceeds of these calls or sales then were reinvested in bonds
paying lower, current interest rates. This had a slight negative impact on the
Funds' earning power and was a minor factor in the dividend reductions noted
above.
10
All of the Funds in this report seek to pay stable dividends at rates that
reflect each Fund's past results and projected future performance. During
certain periods, each Fund may pay dividends at a rate that may be more or less
than the amount of net investment income actually earned by the Fund during the
period. If a Fund has cumulatively earned more than it has paid in dividends, it
holds the excess in reserve as undistributed net investment income (UNII) as
part of the Fund's NAV. Conversely, if a Fund has cumulatively paid dividends in
excess of its earnings, the excess constitutes negative UNII that is likewise
reflected in the Fund's NAV. Each Fund will, over time, pay all of its net
investment income as dividends to shareholders. As of August 31, 2005, all of
the Funds in this report had positive UNII balances for both financial statement
and tax purposes.
At the end of the reporting period, the Funds' share prices were trading at
discounts to their NAVs as shown in the accompanying chart:
8/31/05 12-MONTH AVERAGE
DISCOUNT DISCOUNT
--------------------------------------------------------------------------------
NCA -3.97% -6.99%
--------------------------------------------------------------------------------
NCP -8.04% -7.59%
--------------------------------------------------------------------------------
NCO -3.28% -6.94%
--------------------------------------------------------------------------------
NQC -4.79% -5.67%
--------------------------------------------------------------------------------
NVC -1.81% -5.13%
--------------------------------------------------------------------------------
NUC -1.87% -3.76%
--------------------------------------------------------------------------------
11
Nuveen California Municipal Value Fund, Inc.
NCA
Performance
OVERVIEW As of August 31, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 60%
AA 4%
A 9%
BBB 18%
BB or Lower 1%
NR 8%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Sep 0.0385
Oct 0.0385
Nov 0.0385
Dec 0.0385
Jan 0.0385
Feb 0.0385
Mar 0.0385
Apr 0.0385
May 0.0385
Jun 0.0385
Jul 0.0385
Aug 0.0385
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
9/1/04 9.21
9.29
9.29
9.3
9.3
9.3
9.31
9.29
9.27
9.3
9.29
9.28
9.32
9.35
9.4
9.32
9.44
9.54
9.54
9.54
9.5
9.49
9.39
9.5
9.52
9.5
9.51
9.5
9.44
9.37
9.34
9.38
9.38
9.4
9.39
9.5
9.5
9.45
9.5
9.5
9.53
9.62
9.49
9.46
9.5
9.54
9.54
9.44
9.52
9.42
9.42
9.47
9.62
9.7
9.61
9.6
9.55
9.56
9.56
9.53
9.44
9.48
9.54
9.35
9.36
9.46
9.35
9.33
9.36
9.35
9.35
9.25
9.18
9.17
9.18
9.22
9.19
9.19
9.2
9.14
9.19
9.15
9.2
9.2
9.24
9.31
9.31
9.22
9.23
9.35
9.31
9.33
9.23
9.29
9.24
9.29
9.23
9.24
9.3
9.24
9.3
9.26
9.33
9.31
9.42
9.49
9.55
9.8
9.74
9.74
9.73
9.75
9.82
9.63
9.68
9.57
9.56
9.54
9.51
9.41
9.43
9.55
9.58
9.62
9.6
9.6
9.62
9.6
9.7
9.6
9.6
9.58
9.57
9.56
9.47
9.5
9.6
9.45
9.45
9.32
9.41
9.34
9.28
9.13
9.21
9.33
9.31
9.36
9.36
9.39
9.34
9.31
9.29
9.33
9.34
9.34
9.47
9.46
9.4
9.37
9.35
9.37
9.38
9.38
9.45
9.4
9.45
9.45
9.45
9.46
9.43
9.48
9.45
9.54
9.5
9.49
9.45
9.41
9.46
9.43
9.47
9.47
9.47
9.52
9.53
9.56
9.6
9.56
9.56
9.57
9.58
9.59
9.67
9.66
9.74
9.71
9.71
9.7
9.83
9.83
9.82
9.79
9.79
9.84
9.77
9.82
9.9
9.88
9.85
9.88
9.85
9.84
9.89
9.93
9.98
9.9
9.89
9.88
9.73
9.78
9.77
9.83
9.8
9.76
9.81
9.93
9.93
9.88
9.83
9.85
9.84
9.84
9.88
9.9
9.9
9.91
9.86
9.89
9.89
9.92
9.85
9.812
9.73
9.75
9.73
9.74
9.79
9.83
9.84
9.79
9.84
9.91
9.94
9.98
8/31/05 9.92
FUND SNAPSHOT
------------------------------------
Common Share Price $9.92
------------------------------------
Common Share
Net Asset Value $10.33
------------------------------------
Premium/(Discount) to NAV -3.97%
------------------------------------
Market Yield 4.66%
------------------------------------
Taxable-Equivalent Yield1 7.11%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $260,782
------------------------------------
Average Effective Maturity
on Securities (Years) 16.46
------------------------------------
Modified Duration 5.11
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 10/07/87)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 13.33% 6.82%
------------------------------------
5-Year 7.00% 6.35%
------------------------------------
10-Year 6.30% 5.87%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 32.1%
------------------------------------
U.S. Guaranteed 22.9%
------------------------------------
Tax Obligation/General 11.1%
------------------------------------
Healthcare 6.0%
------------------------------------
Utilities 6.0%
------------------------------------
Housing/Multifamily 5.2%
------------------------------------
Long-Term Care 4.6%
------------------------------------
Other 12.1%
------------------------------------
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34.5%. When comparing this fund to investments that generate
qualified dividend income, the taxable-equivalent yield is lower.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2004 of $0.0857 per share.
12
Nuveen California Performance Plus Municipal Fund, Inc.
NCP
Performance
OVERVIEW As of August 31, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 63%
AA 12%
A 13%
BBB 10%
NR 2%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Sep 0.0775
Oct 0.0775
Nov 0.0775
Dec 0.0775
Jan 0.0775
Feb 0.0775
Mar 0.0745
Apr 0.0745
May 0.0745
Jun 0.0705
Jul 0.0705
Aug 0.0705
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
9/1/04 14.26
14.31
14.23
14.32
14.35
14.28
14.31
14.24
14.21
14.27
14.31
14.35
14.38
14.38
14.41
14.46
14.5
14.52
14.53
14.49
14.4
14.43
14.39
14.4
14.36
14.39
14.42
14.57
14.58
14.49
14.59
14.64
14.64
14.61
14.57
14.63
14.64
14.66
14.61
14.65
14.65
14.74
14.75
14.75
14.79
14.83
14.69
14.61
14.54
14.51
14.37
14.49
14.53
14.42
14.47
14.48
14.48
14.47
14.4
14.44
14.47
14.29
14.16
14.07
13.95
14.14
14.05
14.12
14.17
14.18
14.23
14.03
13.98
13.99
13.97
13.9
13.93
14.02
13.92
13.96
13.96
13.99
13.959
13.99
13.99
14
13.97
13.97
14.09
14.14
14.14
14.2
14.09
14.15
14.21
14.16
14.24
14.48
14.45
14.35
14.28
14.38
14.42
14.43
14.45
14.55
14.59
14.63
14.59
14.65
14.7
14.68
14.73
14.7
14.8
14.86
14.8
14.61
14.55
14.55
14.62
14.78
14.83
14.85
14.88
14.86
14.84
14.9
14.89
14.82
14.62
14.55
14.6
14.54
14.42
14.38
14.34
14.25
14.3
14.2
14.2
14.01
13.84
13.9
13.69
13.79
13.65
13.66
13.72
13.78
13.85
14.04
14.07
14.27
14.02
13.94
14.02
14
14.06
13.9
13.95
13.99
13.97
13.99
14.02
14.03
14.32
14.32
14.31
14.21
14.29
14.33
14.25
14.11
14.26
14.17
14.29
14.21
14.23
14.26
14.39
14.37
14.37
14.33
14.41
14.56
14.65
14.82
14.81
14.8
14.61
14.7
14.58
14.8
14.75
14.63
14.8
14.79
14.7
14.53
14.7
14.58
14.45
14.45
14.51
14.5
14.55
14.52
14.52
14.54
14.54
14.51
14.47
14.7
14.92
14.85
14.89
14.87
14.79
14.71
14.7
14.67
14.76
14.606
14.75
14.69
14.74
14.62
14.65
14.71
14.69
14.69
14.61
14.62
14.6
14.51
14.37
14.29
14.29
14.36
14.25
14.27
14.38
14.43
14.38
14.45
14.48
14.45
14.47
14.47
14.5
14.48
14.52
14.5
8/31/05 14.52
FUND SNAPSHOT
------------------------------------
Common Share Price $14.52
------------------------------------
Common Share
Net Asset Value $15.79
------------------------------------
Premium/(Discount) to NAV -8.04%
------------------------------------
Market Yield 5.83%
------------------------------------
Taxable-Equivalent Yield1 8.90%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $204,692
------------------------------------
Average Effective Maturity
on Securities (Years) 15.16
------------------------------------
Leverage-Adjusted Duration 8.17
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/15/89)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 9.66% 8.89%
------------------------------------
5-Year 5.30% 7.78%
------------------------------------
10-Year 6.49% 6.98%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Transportation 18.9%
------------------------------------
Tax Obligation/General 16.9%
------------------------------------
Tax Obligation/Limited 15.9%
------------------------------------
U.S. Guaranteed 11.8%
------------------------------------
Water and Sewer 10.2%
------------------------------------
Utilities 9.4%
------------------------------------
Healthcare 6.3%
------------------------------------
Other 10.6%
------------------------------------
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34.5%. When comparing this fund to investments that generate
qualified dividend income, the taxable-equivalent yield is lower.
2 The Fund also paid shareholders a capital gains distribution in December
2004 of $0.1714 per share.
13
Nuveen California Municipal Market Opportunity Fund, Inc.
NCO
Performance
OVERVIEW As of August 31, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 61%
AA 15%
A 10%
BBB 12%
NR 2%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Sep 0.079
Oct 0.079
Nov 0.079
Dec 0.079
Jan 0.079
Feb 0.079
Mar 0.076
Apr 0.076
May 0.076
Jun 0.076
Jul 0.076
Aug 0.076
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
9/1/04 14.46
14.44
14.47
14.69
14.75
14.67
14.75
14.71
14.6
14.6
14.6
14.63
14.94
14.77
14.91
14.84
14.78
14.89
14.89
14.91
14.71
14.79
14.78
14.73
14.78
14.76
14.88
14.87
14.93
14.93
15.03
15.04
15.02
15
14.95
15.03
15.04
14.94
14.98
15
14.95
14.95
14.88
15.07
15.13
15.13
14.83
14.5
14.47
14.4
14.35
14.43
14.65
14.55
14.64
14.7
14.64
14.69
14.69
14.66
14.66
14.77
14.69
14.69
14.58
14.7
14.58
14.55
14.67
14.6
14.62
14.43
14.42
14.455
14.39
14.25
14.3
14.21
14.3
14.22
14.18
14.19
14.13
14.16
14.12
14.15
14.14
14.17
14.2
14.34
14.38
14.39
14.3
14.36
14.34
14.58
14.58
14.58
14.61
14.58
14.57
14.59
14.64
14.68
14.89
14.92
14.96
15.12
15.105
15.24
15.24
15.16
15.1
15.01
15
14.95
15.03
14.81
14.59
14.54
14.5
14.59
14.98
14.9
14.93
14.96
14.96
14.94
14.92
14.89
14.8
14.7
14.74
14.8
14.72
14.55
14.53
14.51
14.51
14.5
14.09
14.24
14.3
14.3
14.38
14.38
14.35
14.22
14.19
14.22
14.34
14.23
14.24
14.25
14.21
14.21
14.23
14.22
14.34
14.22
14.18
14.21
14.3
14.33
14.36
14.4
14.44
14.44
14.53
14.57
14.6
14.56
14.43
14.45
14.6
14.64
14.61
14.68
14.69
14.72
14.76
14.87
14.8
14.88
14.83
14.8
14.85
14.85
14.89
14.97
14.93
14.9
14.98
14.96
14.98
14.97
14.97
14.76
14.8
14.72
14.81
14.8
14.88
14.79
14.81
14.91
14.99
15
15
15
15.05
15.14
15.19
15.15
15.32
15.45
15.46
15.5
15.46
15.51
15.45
15.45
15.41
15.41
15.28
15.244
15.29
15.26
15.31
15.27
15.24
15.24
15.28
15.2
15.24
15.19
15
15.1
15.19
15.2
15.1
15
15.1
15.34
15.34
15.45
15.55
15.41
15.41
15.452
15.5
15.55
15.67
15.66
8/31/05 15.61
FUND SNAPSHOT
------------------------------------
Common Share Price $15.61
------------------------------------
Common Share
Net Asset Value $16.14
------------------------------------
Premium/(Discount) to NAV -3.28%
------------------------------------
Market Yield 5.84%
------------------------------------
Taxable-Equivalent Yield1 8.92%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $131,587
------------------------------------
Average Effective Maturity
on Securities (Years) 16.85
------------------------------------
Leverage-Adjusted Duration 8.52
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 5/17/90)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 15.00% 9.19%
------------------------------------
5-Year 6.11% 8.11%
------------------------------------
10-Year 7.00% 6.99%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 22.6%
------------------------------------
Transportation 17.0%
------------------------------------
Tax Obligation/General 16.6%
------------------------------------
Water and Sewer 11.3%
------------------------------------
U.S. Guaranteed 10.6%
------------------------------------
Healthcare 7.4%
------------------------------------
Utilities 5.8%
------------------------------------
Other 8.7%
------------------------------------
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34.5%. When comparing this fund to investments that generate
qualified dividend income, the taxable-equivalent yield is lower.
14
Nuveen California Investment Quality Municipal Fund, Inc.
NQC
Performance
OVERVIEW As of August 31, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 67%
AA 11%
A 12%
BBB 9%
NR 1%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Sep 0.0795
Oct 0.0795
Nov 0.0795
Dec 0.0795
Jan 0.0795
Feb 0.0795
Mar 0.0765
Apr 0.0765
May 0.0765
Jun 0.0725
Jul 0.0725
Aug 0.0725
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
9/1/04 14.9
14.81
14.65
14.92
15
14.95
14.99
14.96
14.9
14.96
15.04
14.96
15.05
14.97
14.98
14.98
15.02
15.03
15.09
15.06
15.07
14.96
15
15.04
15.1
15.1
15.14
15.26
15.26
15.22
15.18
15.03
15.02
15.08
15.04
15.05
15.12
15.11
15.11
15.1
15.17
15.21
15.14
15.16
15.15
15.17
15.06
14.95
15.21
15.25
15.19
15.2
15.2
15.12
15.12
15.05
14.98
15
14.96
14.98
15.04
14.96
14.97
14.98
14.95
15.05
14.99
14.99
15.05
15.02
14.96
14.83
14.61
14.62
14.52
14.41
14.34
14.32
14.24
14.24
14.19
14.17
14.19
14.19
14.18
14.18
14.16
14.18
14.25
14.31
14.44
14.42
14.4
14.41
14.41
14.45
14.51
14.55
14.59
14.61
14.52
14.49
14.49
14.48
14.61
14.77
14.83
14.92
14.98
14.94
15
15.11
15.14
15.11
15.13
15.2
15.12
15.01
14.8
14.77
14.85
15.27
15.58
15.3
15.19
15.37
15.32
15.27
15.18
15.15
14.96
14.81
14.57
14.41
14.41
14.35
14.45
14.48
14.37
14.37
14.4
14.2
14.19
14.3
14.24
14.33
14.37
14.52
14.4
14.45
14.41
14.46
14.48
14.42
14.33
14.4
14.368
14.36
14.36
14.35
14.39
14.3
14.52
14.5
14.79
14.78
14.75
14.75
14.67
14.73
14.74
14.75
14.54
14.55
14.58
14.53
14.51
14.67
14.76
14.98
14.93
14.86
14.75
14.75
14.8
14.8005
14.85
14.8
14.75
14.8
14.76
14.83
14.81
14.9
14.83
14.87
14.88
14.72
14.7
14.65
14.6
14.75
14.66
14.8
14.874
15
15.06
14.95
15
15.02
15.14
15.03
15.08
14.94
15.06
15.01
15.1
15.15
15.18
15.22
15.3
15.25
15.08
15.118
15.02
14.91
14.98
14.94
15
15.13
15.06
15.06
15.15
15.15
15.11
15.03
14.94
14.77
14.95
15.05
14.82
14.82
14.96
14.92
14.93
14.88
14.9
14.94
15.01
14.97
15.06
15.02
15.12
15.08
8/31/05 15.1
FUND SNAPSHOT
------------------------------------
Common Share Price $15.10
------------------------------------
Common Share
Net Asset Value $15.86
------------------------------------
Premium/(Discount) to NAV -4.79%
------------------------------------
Market Yield 5.76%
------------------------------------
Taxable-Equivalent Yield1 8.79%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $215,446
------------------------------------
Average Effective Maturity
on Securities (Years) 15.87
------------------------------------
Leverage-Adjusted Duration 7.58
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/20/90)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 9.33% 8.18%
------------------------------------
5-Year 5.98% 7.98%
------------------------------------
10-Year 6.58% 6.88%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 23.6%
------------------------------------
Transportation 19.4%
------------------------------------
Tax Obligation/General 13.1%
------------------------------------
U.S. Guaranteed 12.8%
------------------------------------
Education and Civic
Organizations 9.9%
------------------------------------
Healthcare 6.7%
------------------------------------
Utilities 6.2%
------------------------------------
Water and Sewer 5.4%
------------------------------------
Other 2.9%
------------------------------------
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34.5%. When comparing this fund to investments that generate
qualified dividend income, the taxable-equivalent yield is lower.
2 The Fund also paid shareholders a capital gains distribution in December
2004 of $0.1057 per share.
15
Nuveen California Select Quality Municipal Fund, Inc.
NVC
Performance
OVERVIEW As of August 31, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 70%
AA 6%
A 16%
BBB 6%
NR 2%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Sep 0.0805
Oct 0.0805
Nov 0.0805
Dec 0.0805
Jan 0.0805
Feb 0.0805
Mar 0.0775
Apr 0.0775
May 0.0775
Jun 0.0775
Jul 0.0775
Aug 0.0775
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
9/1/04 14.76
14.75
14.7
14.74
14.74
14.88
14.8
14.65
14.63
14.61
14.83
14.67
14.75
14.75
14.78
14.85
14.77
14.87
14.89
14.88
14.84
14.7
14.85
15.01
14.94
15.1
15.15
15.07
15.13
15.07
15.06
15.04
15.09
15.19
15.08
15.08
15.23
15.17
15.1
15.01
15.03
15.17
15.24
15.32
15.18
15.48
15.27
14.93
14.88
14.68
14.72
15.06
15.16
15.16
15.17
15.12
15.1
15.18
15.1
15.18
15.15
15.1
15.04
15.17
15.1
15.16
15.18
15.11
15.24
15.19
15.14
15.09
15.01
15
14.88
14.7
14.67
14.59
14.56
14.5
14.41
14.36
14.33
14.31
14.37
14.39
14.42
14.46
14.57
14.61
14.51
14.53
14.44
14.53
14.43
14.53
14.57
14.63
14.69
14.63
14.67
14.61
14.72
14.79
15.01
14.97
15.01
14.93
14.99
15.08
15.11
15.19
15.26
15.06
15.04
15
15.07
14.98
14.92
14.68
14.69
14.76
14.89
15.01
14.94
15.01
14.98
15.09
15.1
15.01
14.84
14.75
14.75
14.67
14.64
14.59
14.6
14.73
14.58
14.33
14.24
14.37
14.05
14.09
14.16
14.23
14.38
14.38
14.44
14.44
14.49
14.47
14.54
14.52
14.38
14.43
14.5
14.59
14.67
14.57
14.56
14.56
14.69
14.56
14.58
14.64
14.95
14.95
14.9
14.8
14.76
14.71
14.65
14.66
14.74
14.7
14.65
14.73
14.65
14.73
14.75
14.74
14.73
14.78
14.8
14.8
14.83
14.87
14.91
14.95
14.99
14.92
14.95
15.14
15.24
15.1
15.08
15.06
15.07
15.09
15.23
15.25
15.25
15.16
15.08
15.09
15.04
15.101
15.14
15.1
15.26
15.27
15.29
15.26
15.4
15.56
15.54
15.44
15.5
15.51
15.4
15.42
15.42
15.43
15.52
15.49
15.49
15.43
15.53
15.52
15.5
15.5
15.6
15.614
15.65
15.58
15.37
15.39
15.55
15.55
15.67
15.67
15.75
15.78
15.72
15.71
15.56
15.57
15.57
15.56
15.6
15.55
15.68
15.7
8/31/05 15.69
FUND SNAPSHOT
------------------------------------
Common Share Price $15.69
------------------------------------
Common Share
Net Asset Value $15.98
------------------------------------
Premium/(Discount) to NAV -1.81%
------------------------------------
Market Yield 5.93%
------------------------------------
Taxable-Equivalent Yield1 9.05%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $369,087
------------------------------------
Average Effective Maturity
on Securities (Years) 16.57
------------------------------------
Leverage-Adjusted Duration 7.66
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 5/22/91)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 13.70% 9.33%
------------------------------------
5-Year 7.17% 8.26%
------------------------------------
10-Year 7.73% 7.32%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 19.2%
------------------------------------
U.S. Guaranteed 17.3%
------------------------------------
Tax Obligation/General 14.5%
------------------------------------
Transportation 12.1%
------------------------------------
Utilities 11.9%
------------------------------------
Water and Sewer 7.8%
------------------------------------
Healthcare 7.5%
------------------------------------
Other 9.7%
------------------------------------
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34.5%. When comparing this fund to investments that generate
qualified dividend income, the taxable-equivalent yield is lower.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2004 of $0.1123 per share.
16
Nuveen California Quality Income Municipal Fund, Inc.
NUC
Performance
OVERVIEW As of August 31, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 68%
AA 9%
A 11%
BBB 10%
NR 2%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Sep 0.083
Oct 0.083
Nov 0.083
Dec 0.083
Jan 0.083
Feb 0.083
Mar 0.08
Apr 0.08
May 0.08
Jun 0.076
Jul 0.076
Aug 0.076
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
9/1/04 15.07
15.1
15.06
15.09
15.05
15
15.05
15.01
14.97
14.95
15.04
14.98
15.09
15.09
15.11
15.1
15.15
15.18
15.1
15.12
15.02
15.09
15.05
15.11
15.11
15.2
15.26
15.37
15.47
15.37
15.18
15.34
15.38
15.27
15.26
15.21
15.32
15.23
15.28
15.26
15.3
15.28
15.3
15.37
15.46
15.59
15.23
15.02
15.08
15.05
15
14.98
15.04
15.05
15.12
15.3
15.26
15.21
15.45
15.38
15.5
15.4
15.22
15.21
15.02
15.11
15.06
15.05
15.15
15.03
15.04
14.89
14.79
14.86
14.85
14.8
14.78
14.79
14.82
14.77
14.76
14.64
14.61
14.69
14.71
14.76
14.76
14.79
14.89
15.05
15.1
15.2
15.11
15.01
15.04
15.18
15.19
15.3
15.41
15.35
15.255
15.31
15.31
15.36
15.53
15.47
15.49
15.46
15.5
15.54
15.62
15.78
15.71
15.49
15.49
15.46
15.47
15.395
15.35
15.2
15.3
15.36
15.49
15.47
15.42
15.4
15.38
15.4
15.39
15.32
15.05
15.07
14.85
14.84
14.93
14.88
14.89
14.87
14.75
14.66
14.65
14.49
14.29
14.28
14.28
14.36
14.42
14.46
14.43
14.47
14.45
14.46
14.47
14.51
14.45
14.41
14.56
14.72
14.75
14.78
14.7
14.7
14.71
14.63
14.69
14.73
14.87
14.87
14.93
15
15.04
15.06
15.02
14.99
15.13
15.04
15.11
15.14
15.23
15.31
15.37
15.37
15.32
15.37
15.54
15.38
15.47
15.46
15.47
15.5
15.51
15.46
15.42
15.4
15.5
15.4
15.31
15.2
15.21
15.23
15.2
15.21
15.2
15.18
15.2
15.26
15.23
15.27
15.26
15.3
15.25
15.27
15.29
15.24
15.34
15.3
15.45
15.39
15.3
15.31
15.3
15.25
15.26
15.204
14.97
15.09
15.07
15.1
15.24
15.33
15.27
15.27
15.35
15.37
15.38
15.32
15.27
15.25
15.192
15.32
15.33
15.27
15.38
15.4
15.5
15.55
15.55
15.52
15.53
15.69
15.63
15.66
15.75
15.61
8/31/05 15.73
FUND SNAPSHOT
------------------------------------
Common Share Price $15.73
------------------------------------
Common Share
Net Asset Value $16.03
------------------------------------
Premium/(Discount) to NAV -1.87%
------------------------------------
Market Yield 5.80%
------------------------------------
Taxable-Equivalent Yield1 8.85%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $352,752
------------------------------------
Average Effective Maturity
on Securities (Years) 16.84
------------------------------------
Leverage-Adjusted Duration 8.09
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/20/91)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 12.30% 10.57%
------------------------------------
5-Year 6.32% 7.76%
------------------------------------
10-Year 7.68% 7.36%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 21.7%
------------------------------------
U.S. Guaranteed 17.4%
------------------------------------
Tax Obligation/General 17.0%
------------------------------------
Education and Civic
Organizations 10.6%
------------------------------------
Transportation 8.6%
------------------------------------
Utilities 7.8%
------------------------------------
Consumer Staples 5.1%
------------------------------------
Other 11.8%
------------------------------------
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34.5%. When comparing this fund to investments that generate
qualified dividend income, the taxable-equivalent yield is lower.
2 The Fund also paid shareholders a capital gains distribution in December
2004 of $0.0793 per share.
17
Shareholder
MEETING REPORT
The Special Shareholder Meeting was held at The Northern Trust Bank,
50 S. LaSalle St., Chicago, IL on July 26, 2005.
NCA NCP NCO NQC NVC NUC
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE NEW INVESTMENT MANAGEMENT
AGREEMENT WAS REACHED AS FOLLOWS:
Common and Common and Common and Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares shares shares shares shares
Common voting together voting together voting together voting together voting together
shares as a class as a class as a class as a class as a class
------------------------------------------------------------------------------------------------------------------------------------
For 22,805,944 11,920,877 7,457,546 12,369,746 21,299,997 20,491,713
Against 158,345 56,820 50,355 137,736 111,602 121,942
Abstain 285,042 89,660 106,573 165,742 351,137 198,062
------------------------------------------------------------------------------------------------------------------------------------
Total 23,249,331 12,067,357 7,614,474 12,673,224 21,762,736 20,811,717
====================================================================================================================================
18
Report of
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
THE BOARD OF DIRECTORS AND SHAREHOLDERS
NUVEEN CALIFORNIA MUNICIPAL VALUE FUND, INC.
NUVEEN CALIFORNIA PERFORMANCE PLUS MUNICIPAL FUND, INC.
NUVEEN CALIFORNIA MUNICIPAL MARKET OPPORTUNITY FUND, INC.
NUVEEN CALIFORNIA INVESTMENT QUALITY MUNICIPAL FUND, INC.
NUVEEN CALIFORNIA SELECT QUALITY MUNICIPAL FUND, INC.
NUVEEN CALIFORNIA QUALITY INCOME MUNICIPAL FUND, INC.
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of Nuveen California Municipal Value Fund, Inc.,
Nuveen California Performance Plus Municipal Fund, Inc., Nuveen California
Municipal Market Opportunity Fund, Inc., Nuveen California Investment Quality
Municipal Fund, Inc., Nuveen California Select Quality Municipal Fund, Inc. and
Nuveen California Quality Income Municipal Fund, Inc. as of August 31, 2005, and
the related statements of operations for the year then ended, the statements of
changes in net assets for each of the two years in the period then ended, and
the financial highlights for each of the five years in the period then ended.
These financial statements and financial highlights are the responsibility of
the Funds' management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. We were
not engaged to perform an audit of the Funds' internal control over financial
reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Funds' internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights, assessing the accounting principles used
and significant estimates made by management, and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of August 31, 2005, by correspondence with the custodian and
brokers or other appropriate auditing procedures where replies from brokers were
not received. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial positions of
Nuveen California Municipal Value Fund, Inc., Nuveen California Performance Plus
Municipal Fund, Inc., Nuveen California Municipal Market Opportunity Fund, Inc.,
Nuveen California Investment Quality Municipal Fund, Inc., Nuveen California
Select Quality Municipal Fund, Inc. and Nuveen California Quality Income
Municipal Fund, Inc. at August 31, 2005, and the results of their operations for
the year then ended, changes in their net assets for each of the two years in
the period then ended, and their financial highlights for each of the five years
in the period then ended, in conformity with U.S. generally accepted accounting
principles.
/s/ Ernst & Young LLP
Chicago, Illinois
October 17, 2005
19
Nuveen California Municipal Value Fund, Inc. (NCA)
Portfolio of
INVESTMENTS August 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.0% (2.1% OF TOTAL INVESTMENTS)
$ 2,400 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 Baa3 $ 2,489,400
Settlement 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 BBB 2,792,900
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.250%, 6/01/33
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 0.6% (0.6% OF TOTAL INVESTMENTS)
1,500 California Statewide Community Development Authority, 12/06 at 105.00 N/R 1,574,805
Certificates of Participation, San Diego Space and Science
Foundation, Series 1996, 7.500%, 12/01/26
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 5.9% (6.0% OF TOTAL INVESTMENTS)
915 Arcadia, California, Hospital Revenue Bonds, Methodist 11/05 at 100.00 BBB+ 916,857
Hospital of Southern California, Series 1992, 6.500%, 11/15/12
625 California Health Facilities Financing Authority, Revenue Bonds, 11/15 at 100.00 A3 647,150
Cedars-Sinai Medical Center, Series 2005, 5.000%, 11/15/34
California Statewide Community Development Authority, Revenue
Bonds, Daughters of Charity Health System, Series 2005A:
250 5.250%, 7/01/24 7/15 at 100.00 BBB+ 265,058
530 5.250%, 7/01/35 7/15 at 100.00 BBB+ 555,175
4,000 California Statewide Community Development Authority, No Opt. Call AAA 4,384,600
Revenue Bonds, Sherman Oaks Health System, Series 1998A,
5.000%, 8/01/22 - AMBAC Insured
5,000 Central California Joint Powers Health Finance Authority, 2/10 at 101.00 Baa2 5,285,750
Certificates of Participation, Community Hospitals of Central
California Obligated Group, Series 2000, 6.000%, 2/01/30
1,440 Stockton, California, Health Facility Revenue Bonds, Dameron 12/07 at 102.00 BBB+ 1,517,213
Hospital Association, Series 1997A, 5.300%, 12/01/08
1,730 West Contra Costa Healthcare District, California, 7/14 at 100.00 AAA 1,915,629
Certificates of Participation, Series 2004, 5.375%, 7/01/21 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 5.2% (5.2% OF TOTAL INVESTMENTS)
3,350 ABAG Finance Authority for Non-Profit Corporations, California, No Opt. Call Baa2 3,578,504
Multifamily Housing Revenue Refunding Bonds, United
Dominion/2000 Post Apartments, Series 2000B,
6.400%, 8/15/30 (Alternative Minimum Tax) (Mandatory
put 8/15/08)
2,580 California Statewide Community Development Authority, 7/09 at 102.00 N/R 2,664,443
Multifamily Housing Revenue Bonds, Harbor City Lights,
Series 1999Y, 6.650%, 7/01/39 (Alternative Minimum Tax)
5,000 California Statewide Community Development Authority, No Opt. Call BBB+ 5,225,050
Multifamily Housing Revenue Refunding Bonds, Archstone
Communities Trust, Archstone Pelican Point Apartments,
Series 1999H, 5.300%, 6/01/29 (Mandatory put 6/01/08)
480 Riverside County, California, Subordinate Lien Mobile Home 10/05 at 100.00 N/R 480,192
Park Revenue Bonds, Bravo Mobile Home Park Project,
Series 1999B, 6.500%, 3/20/29
1,440 San Dimas Housing Authority, California, Mobile Home Park 7/08 at 102.00 N/R 1,487,246
Revenue Bonds, Charter Oak Mobile Home Estates
Acquisition Project, Series 1998A, 5.700%, 7/01/28
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.1% (0.1% OF TOTAL INVESTMENTS)
25 California Rural Home Mortgage Finance Authority, GNMA No Opt. Call Aaa 25,366
Collateralized Single Family Mortgage Revenue Bonds,
Series 1993A-2, 7.950%, 12/01/24 (Alternative Minimum Tax)
235 California Rural Home Mortgage Finance Authority, No Opt. Call AAA 236,810
Mortgage-Backed Securities Program Single Family Mortgage
Revenue Bonds, Series 1997D, 6.700%, 5/01/29
(Alternative Minimum Tax)
20
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.4% (0.5% OF TOTAL INVESTMENTS)
$ 1,000 California Municipal Finance Authority, Solid Waste Disposal No Opt. Call BBB $ 1,010,180
Revenue Bonds, Waste Management Inc., Series 2004,
4.100%, 9/01/14 (Alternative Minimum Tax) (Mandatory
put 9/01/09)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 4.5% (4.6% OF TOTAL INVESTMENTS)
ABAG Finance Authority for Non-Profit Corporations, California,
Cal-Mortgage Revenue Bonds, Elder Care Alliance of Union City,
Series 2004:
1,850 5.400%, 8/15/24 8/14 at 100.00 A 1,978,742
2,130 5.600%, 8/15/34 8/14 at 100.00 A 2,287,769
2,720 ABAG Finance Authority for Non-Profit Corporations, 10/07 at 102.00 BB+ 2,767,763
California, Certificates of Participation, American Baptist
Homes of the West, Series 1997A, 5.750%, 10/01/17
3,000 California Statewide Community Development Authority, 4/09 at 101.00 BBB 3,091,350
Certificates of Participation, Internext Group, Series 1999,
5.375%, 4/01/17
1,500 Riverside County Public Financing Authority, California, 5/09 at 101.00 BBB- 1,574,115
Certificates of Participation, Air Force Village West,
Series 1999, 5.750%, 5/15/19
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 10.9% (11.1% OF TOTAL INVESTMENTS)
California, General Obligation Bonds, Series 2004:
500 5.000%, 2/01/20 2/14 at 100.00 A 537,450
5,200 5.000%, 2/01/21 2/14 at 100.00 A 5,574,088
2,850 5.250%, 4/01/34 4/14 at 100.00 A 3,141,384
1,000 Fremont Unified School District, Alameda County, California, 8/12 at 101.00 AAA 1,086,170
General Obligation Bonds, Series 2002A, 5.000%, 8/01/21 -
FGIC Insured
2,475 Long Beach Community College District, California, General 5/13 at 100.00 AAA 2,622,634
Obligation Bonds, Series 2003A, 5.000%, 5/01/28 -
MBIA Insured
1,110 Los Angeles Community College District, Los Angeles County, 8/15 at 100.00 AAA 1,195,859
California, General Obligation Bonds, Series 2005A,
5.000%, 6/01/26 - FSA Insured
3,200 Los Angeles Unified School District, California, General 7/13 at 100.00 AAA 3,470,752
Obligation Bonds, Series 2003A, 5.000%, 7/01/22 -
FSA Insured
1,845 Oakland Unified School District, Alameda County, California, 8/08 at 101.00 AAA 1,950,921
General Obligation Bonds, Series 2001, 5.125%, 8/01/21 -
FSA Insured
Oakland Unified School District, Alameda County, California,
General Obligation Bonds, Series 2005:
360 5.000%, 8/01/25 - MBIA Insured 8/15 at 100.00 AAA 388,148
380 5.000%, 8/01/26 - MBIA Insured 8/15 at 100.00 AAA 408,105
2,000 Puerto Rico, General Obligation and Public Improvement No Opt. Call AAA 2,381,460
Bonds, Series 2001A, 5.500%, 7/01/20 - MBIA Insured
San Jose-Evergreen Community College District, Santa Clara
County, California, General Obligation Bonds, Series 2005A:
285 5.000%, 9/01/25 - MBIA Insured 9/15 at 100.00 AAA 308,179
415 5.000%, 9/01/27 - MBIA Insured 9/15 at 100.00 AAA 446,623
1,500 San Ramon Valley Unified School District, Contra Costa 8/13 at 100.00 AAA 1,624,470
County, California, General Obligation Bonds, Series 2003,
5.000%, 8/01/23 - FSA Insured
1,570 Southwestern Community College District, San Diego County, 8/15 at 102.00 AAA 1,727,471
California, General Obligation Bonds, Series 2005,
5.000%, 8/01/23 - MBIA Insured
1,460 West Contra Costa Unified School District, Contra Costa 8/11 at 101.00 AAA 1,571,821
County, California, General Obligation Bonds, Series 2003B,
5.000%, 8/01/20 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 31.6% (32.1% OF TOTAL INVESTMENTS)
Bell Community Redevelopment Agency, California, Tax
Allocation Bonds, Bell Project Area, Series 2003:
3,000 5.500%, 10/01/23 - RAAI Insured 10/13 at 100.00 AA 3,264,870
1,000 5.625%, 10/01/33 - RAAI Insured 10/13 at 100.00 AA 1,088,200
21
Nuveen California Municipal Value Fund, Inc. (NCA) (continued)
Portfolio of INVESTMENTS August 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
Burbank Redevelopment Agency, California, Tax Allocation
Bonds, Golden State Redevelopment Project, Series 2003:
$ 1,700 5.625%, 12/01/28 - FGIC Insured 12/13 at 100.00 AAA $ 1,938,527
5,010 5.750%, 12/01/33 - FGIC Insured 12/13 at 100.00 AAA 5,757,191
2,400 Calexico Community Redevelopment Agency, California, 8/13 at 102.00 AAA 2,559,360
Tax Allocation Bonds, Merged Central Business and
Residential District Project, Series 2003C, 5.000%, 8/01/28 -
AMBAC Insured
California, Economic Recovery Revenue Bonds, Series 2004A:
3,400 5.000%, 7/01/15 7/14 at 100.00 AA- 3,753,226
2,000 5.000%, 7/01/16 7/11 at 100.00 AA- 2,158,600
9,000 California State Public Works Board, Lease Revenue Bonds, 1/06 at 100.00 AAA 9,064,530
Department of Corrections, State Substance Abuse Treatment
Facility and Corcoran II State Prison, Series 1996A,
5.250%, 1/01/21 - AMBAC Insured
4,000 California State Public Works Board, Lease Revenue Bonds, 11/09 at 101.00 AAA 4,406,720
Department of Health Services, Series 1999A,
5.750%, 11/01/24 - MBIA Insured
2,800 Commerce Community Development Commission, California, 8/07 at 102.00 N/R 2,954,392
Subordinate Lien Tax Allocation Refunding Bonds,
Redevelopment Project 1, Series 1997B, 6.000%, 8/01/21
1,855 Duarte Redevelopment Agency, California, Tax Allocation 9/07 at 102.00 N/R 1,970,400
Refunding Bonds, Amended Davis Addition Project Area,
Series 1997A, 6.700%, 9/01/14
260 Hesperia Community Redevelopment Agency, California, 9/15 at 100.00 AAA 281,590
Tax Allocation Bonds, Series 2005A, 5.000%, 9/01/20 -
XLCA Insured
2,750 Los Angeles County Schools, California, Certificates of 9/13 at 100.00 AAA 2,902,955
Participation, Pooled Financing Program, Regionalized Business
Services Corporation, Series 2003A, 5.000%, 9/01/28 -
FSA Insured
3,665 Milpitas, California, Local Improvement District 20 Limited 9/05 at 103.00 N/R 3,797,820
Obligation Bonds, Series 1998A, 5.650%, 9/02/13
Modesto Schools Infrastructure Financing Agency, Stanislaus
County, California, Special Tax Revenue Bonds, Series 2004:
1,045 5.250%, 9/01/22 - AMBAC Insured 9/14 at 100.00 AAA 1,154,976
1,145 5.250%, 9/01/23 - AMBAC Insured 9/14 at 100.00 AAA 1,263,668
1,255 5.250%, 9/01/24 - AMBAC Insured 9/14 at 100.00 AAA 1,383,060
420 Oakland Redevelopment Agency, California, Subordinate Lien 3/13 at 100.00 AAA 466,939
Tax Allocation Bonds, Central District Redevelopment Project,
Series 2003, 5.500%, 9/01/18 - FGIC Insured
8,000 Palmdale Elementary School District, Los Angeles County, 8/09 at 101.00 AAA 8,777,680
California, Special Tax Bonds, Community Facilities
District 90-1, Series 1999, 5.800%, 8/01/29 - FSA Insured
3,300 Puerto Rico Highway and Transportation Authority, Highway 7/12 at 100.00 A 3,550,371
Revenue Bonds, Series 2002D, 5.375%, 7/01/36
290 Rialto Redevelopment Agency, California, Tax Allocation 9/15 at 100.00 AAA 305,996
Bonds, Merged Project Area, Series 2005A,
5.000%, 9/01/35 - XLCA Insured
195 Riverside County Public Financing Authority, California, 10/15 at 100.00 AAA 206,312
Tax Allocation Bonds, Multiple Projects, Series 2005A,
5.000%, 10/01/35 (WI, settling 9/08/05) - XLCA Insured
3,130 San Francisco Redevelopment Agency, California, Lease 7/11 at 102.00 AAA 3,422,812
Revenue Bonds, Moscone Convention Center, Series 2004,
5.250%, 7/01/23 - AMBAC Insured
2,750 San Jose Financing Authority, California, Lease Revenue 9/11 at 100.00 AAA 2,943,848
Refunding Bonds, Convention Center Project, Series 2001F,
5.000%, 9/01/20 - MBIA Insured
1,700 Shafter Joint Powers Financing Authority, California, Lease 1/07 at 101.00 A- 1,776,636
Revenue Bonds, Community Correctional Facility Acquisition
Project, Series 1997A, 5.950%, 1/01/11
1,000 Simi Valley, California, Certificates of Participation, 9/14 at 100.00 AAA 1,071,450
Series 2004, 5.000%, 9/01/24 - AMBAC Insured
3,845 Ventura County Superintendent of Schools, California, 12/11 at 100.00 AAA 4,021,985
Certificates Participation, Series 2003, 5.000%, 12/01/27 -
AMBAC Insured
3,000 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/10 at 101.00 BBB 3,400,350
Loan Note, Series 1999A, 6.500%, 10/01/24
2,570 Vista Joint Powers Financing Authority, California, Special 9/05 at 102.00 N/R 2,623,379
Tax Lease Revenue Refunding Bonds, Community Facilities
District 90-2, Series 1997A, 5.875%, 9/01/20
22
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 4.3% (4.4% OF TOTAL INVESTMENTS)
$ 5,500 Foothill/Eastern Transportation Corridor Agency, California, 1/14 at 101.00 BBB- $ 4,752,110
Toll Road Revenue Refunding Bonds, Series 1999,
0.000%, 1/15/27
1,250 Fresno, California, Airport Revenue Bonds, Series 2000A, 7/10 at 101.00 AAA 1,366,700
5.500%, 7/01/30 - FSA Insured
5,000 San Francisco Airports Commission, California, Revenue Bonds, 5/06 at 102.00 AAA 5,170,750
San Francisco International Airport, Second Series Issue 10A,
5.625%, 5/01/21 (Alternative Minimum Tax) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 22.6% (22.9% OF TOTAL INVESTMENTS)
3,115 California Educational Facilities Authority, Revenue Bonds, 6/10 at 101.00 Baa3*** 3,614,553
Pooled College and University Projects, Series 2000C,
6.750%, 6/01/30
12,000 California Health Facilities Financing Authority, Revenue 12/09 at 101.00 A3*** 13,564,200
Bonds, Cedars-Sinai Medical Center, Series 1999A,
6.125%, 12/01/30 (Pre-refunded to 12/01/09)
6,260 California, Various Purpose General Obligation Bonds, 3/10 at 101.00 AAA 7,002,123
Series 2000, 5.750%, 3/01/27 (Pre-refunded to 3/01/10) -
MBIA Insured
2,000 Capistrano Unified School District, Orange County, California, 9/09 at 102.00 N/R*** 2,234,520
Special Tax Bonds, Community Facilities District 98-2 -
Ladera, Series 1999, 5.750%, 9/01/29 (Pre-refunded to 9/01/09)
2,065 Contra Costa County, California, GNMA Mortgage-Backed No Opt. Call AAA 3,014,342
Securities Program Home Mortgage Revenue Bonds,
Series 1988, 8.250%, 6/01/21 (Alternative Minimum Tax)
Golden State Tobacco Securitization Corporation, California,
Enhanced Tobacco Settlement Asset-Backed Bonds,
Series 2003B:
3,800 5.500%, 6/01/33 (Pre-refunded to 6/01/13) 6/13 at 100.00 Aaa 4,316,724
3,000 5.625%, 6/01/38 (Pre-refunded to 6/01/13) 6/13 at 100.00 Aaa 3,433,230
2,500 Los Angeles Community Redevelopment Agency, California, 1/06 at 100.00 BBB*** 2,671,200
Tax Allocation Refunding Bonds, Central Business District
Redevelopment Project, Series 1987G, 6.750%, 7/01/10
4,401 Merced Irrigation District, California, Subordinated Revenue 3/08 at 102.00 AAA 4,873,095
Certificates of Participation, Electric System Project,
Series 2000, 7.450%, 3/01/18 (Pre-refunded to 3/01/08)
8,565 Palmdale, California, GNMA Mortgage-Backed Securities No Opt. Call AAA 5,322,462
Program Single Family Mortgage Revenue Bonds,
Series 1988A, 0.000%, 3/01/17
20,415 San Bernardino County, California, GNMA Mortgage-Backed No Opt. Call AAA 8,703,527
Securities Program Single Family Home Mortgage Revenue
Bonds, Series 1988A, 0.000%, 9/01/21 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 5.9% (6.0% OF TOTAL INVESTMENTS)
4,500 California Department of Water Resources, Power Supply 5/12 at 101.00 A2 4,848,525
Revenue Bonds, Series 2002A, 5.125%, 5/01/18
2,875 California Statewide Community Development Authority, 12/05 at 101.50 N/R 2,933,794
Certificates of Participation Refunding, Rio Bravo Fresno
Project, Series 1999A, 6.300%, 12/01/18
500 Los Angeles Department of Water and Power, California, 7/13 at 100.00 AAA 542,980
Power System Revenue Bonds, Series 2003A-2,
5.000%, 7/01/21 - MBIA Insured
3,300 Merced Irrigation District, California, Revenue Refunding 9/05 at 102.00 Baa3 3,371,544
Bonds, Electric System Project, Series 2001, 6.850%, 9/01/36
3,470 Puerto Rico Industrial, Tourist, Educational, Medical and 6/10 at 101.00 Baa3 3,769,669
Environmental Control Facilities Financing Authority,
Co-Generation Facility Revenue Bonds, Series 2000A,
6.625%, 6/01/26 (Alternative Minimum Tax)
23
Nuveen California Municipal Value Fund, Inc. (NCA) (continued)
Portfolio of INVESTMENTS August 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 4.3% (4.4% OF TOTAL INVESTMENTS)
$ 500 Los Angeles County Sanitation Districts Financing Authority, 10/13 at 100.00 AAA $ 541,770
California, Senior Revenue Bonds, Capital Projects,
Series 2003A, 5.000%, 10/01/23 - FSA Insured
5,000 Orange County Sanitation District, California, Certificates of 8/13 at 100.00 AAA 5,404,500
Participation, Series 2003, 5.250%, 2/01/27 - FGIC Insured
1,580 San Diego County Water Authority, California, Water 5/12 at 101.00 AAA 1,669,997
Revenue Refunding Certificates of Participation, Series 2002A,
5.000%, 5/01/26 - MBIA Insured
3,500 Woodbridge Irrigation District, California, Certificates of 7/13 at 100.00 BBB+ 3,707,269
Participation, Water Systems Project, Series 2003,
5.625%, 7/01/43
------------------------------------------------------------------------------------------------------------------------------------
$ 253,931 Total Long-Term Investments (cost $234,367,818) - 98.3% 256,285,029
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.7% 4,496,795
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 260,781,824
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
* Optional Call Provisions (not covered by the report of
independent registered public accounting firm): 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 (not covered by the report of independent
registered public accounting firm): 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.
24
Nuveen California Performance Plus Municipal Fund, Inc. (NCP)
Portfolio of
INVESTMENTS August 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 4.3% (2.8% OF TOTAL INVESTMENTS)
$ 5,170 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 Baa3 $ 5,296,975
Settlement 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 BBB 3,461,670
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.750%, 6/01/39
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 6.1% (4.1% OF TOTAL INVESTMENTS)
4,730 California Infrastructure Economic Development Bank, Revenue 10/11 at 101.00 A- 5,084,419
Bonds, J. David Gladstone Institutes, Series 2001,
5.500%, 10/01/21
4,730 California State University, Systemwide Revenue Bonds, 11/12 at 100.00 AAA 5,149,173
Series 2002A, 5.000%, 11/01/19 - AMBAC Insured
2,000 University of California, Revenue Bonds, Multi-Purpose 5/13 at 100.00 AAA 2,207,780
Projects, Series 2003A, 5.125%, 5/15/17 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 9.4% (6.3% OF TOTAL INVESTMENTS)
750 California Health Facilities Financing Authority, Revenue 11/15 at 100.00 A3 776,580
Bonds, Cedars-Sinai Medical Center, Series 2005,
5.000%, 11/15/34
2,630 California Health Facilities Financing Authority, Insured Health 11/05 at 100.00 A 2,635,050
Facility Revenue Refunding Bonds, Valley Memorial Hospital,
Series 1993A, 6.000%, 5/01/17
5,500 California Statewide Community Development Authority, 7/07 at 102.00 AA- 5,722,750
Certificates of Participation Refunding, St. Joseph Health
System, Series 1997, 5.125%, 7/01/17
California Statewide Community Development Authority,
Revenue Bonds, Daughters of Charity Health
System, Series 2005A:
300 5.250%, 7/01/24 7/15 at 100.00 BBB+ 318,069
630 5.250%, 7/01/35 7/15 at 100.00 BBB+ 659,925
2,000 California Statewide Community Development Authority, No Opt. Call AAA 2,192,300
Revenue Bonds, Sherman Oaks Health System, Series 1998A,
5.000%, 8/01/22 - AMBAC Insured
Central California Joint Powers Health Finance Authority,
Certificates of Participation, Community Hospitals of Central
California, Series 1993:
2,275 5.250%, 2/01/13 2/06 at 100.00 Baa2 2,276,797
4,665 5.000%, 2/01/23 2/06 at 100.00 Baa2 4,665,793
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 5.6% (3.7% OF TOTAL INVESTMENTS)
3,750 California Statewide Community Development Authority, 7/08 at 101.00 BBB 3,873,225
Revenue Refunding Bonds, Irvine Apartment Communities
Development, Series 1998A, 4.900%, 5/15/25 (Mandatory
put 5/15/08)
1,500 California Statewide Community Development Authority, 8/12 at 100.00 A 1,596,960
Student Housing Revenue Bonds, EAH - Irvine East Campus
Apartments, LLC Project, Series 2002A, 5.500%, 8/01/22 -
ACA Insured
3,915 Los Angeles, California, GNMA Collateralized Multifamily 3/07 at 102.00 AAA 4,062,478
Housing Revenue Bonds, Ridgecroft Apartments, Series 1997E,
6.250%, 9/20/39 (Alternative Minimum Tax)
2,000 Los Angeles County Community Development Commission, 11/05 at 100.00 Aaa 2,005,980
California, FHA-Insured Section 8 Assisted Mortgage Revenue
Refunding Bonds, Los Tomas Apartments, Series 1993,
6.500%, 7/15/23
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 25.4% (16.9% OF TOTAL INVESTMENTS)
4,435 California, General Obligation Veterans Welfare Bonds, 12/05 at 101.00 A 4,505,694
Series 2000BT, 5.375%, 12/01/16 (Alternative Minimum Tax)
California, General Obligation Bonds, Series 2003:
2,350 5.250%, 2/01/21 8/13 at 100.00 A 2,586,246
2,000 5.250%, 2/01/22 - CIFG Insured 8/13 at 100.00 AAA 2,171,680
25
Nuveen California Performance Plus Municipal Fund, Inc. (NCP) (continued)
Portfolio of INVESTMENTS August 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
California, General Obligation Bonds, Series 2004:
$ 500 5.000%, 2/01/23 2/14 at 100.00 A $ 533,025
3,950 5.200%, 4/01/26 4/14 at 100.00 A 4,305,461
3,400 5.250%, 4/01/34 4/14 at 100.00 A 3,747,616
3,550 Centinela Valley Union High School District, Los Angeles No Opt. Call AAA 4,081,932
County, California, General Obligation Bonds, Series 2002A,
5.250%, 2/01/26 - MBIA Insured
1,530 Long Beach Community College District, California, General 5/13 at 100.00 AAA 1,674,463
Obligation Bonds, Series 2003A, 5.000%, 5/01/18 -
MBIA Insured
1,320 Los Angeles Community College District, Los Angeles County, 8/15 at 100.00 AAA 1,422,102
California, General Obligation Bonds, Series 2005A,
5.000%, 6/01/26 - FSA Insured
1,000 Los Angeles Unified School District, California, General 7/14 at 100.00 AAA 1,086,540
Obligation Bonds, Series 2004A-2, 5.000%, 7/01/20 -
FGIC Insured
4,765 North Orange County Community College District, California, No Opt. Call AAA 1,769,626
General Obligation Bonds, Series 2003B, 0.000%, 8/01/27 -
FGIC Insured
Oakland Unified School District, Alameda County, California,
General Obligation Bonds, Series 2005:
435 5.000%, 8/01/25 - MBIA Insured 8/15 at 100.00 AAA 469,013
460 5.000%, 8/01/26 - MBIA Insured 8/15 at 100.00 AAA 494,022
2,575 Oxnard School District, Ventura County, California, General 2/22 at 103.00 AAA 3,096,000
Obligation Refunding Bonds, Series 2001A, 5.750%, 8/01/30 -
MBIA Insured
6,000 Puerto Rico, General Obligation and Public Improvement Bonds, No Opt. Call AAA 7,026,360
Series 1993, 7.000%, 7/01/10 - MBIA Insured
Riverside Community College District, California, General
Obligation Bonds, Series 2004A:
15 5.250%, 8/01/25 - MBIA Insured 8/14 at 100.00 AAA 16,518
20 5.250%, 8/01/26 - MBIA Insured 8/14 at 100.00 AAA 21,961
4,000 San Diego Unified School District, San Diego County, California, 7/13 at 101.00 AAA 4,484,360
General Obligation Bonds, Series 2003E, 5.250%, 7/01/22 -
FSA Insured
3,000 San Jose-Evergreen Community College District, Santa Clara 9/10 at 100.00 AAA 3,324,690
County, California, General Obligation Bonds, Series 2000B,
5.600%, 9/01/24 - FGIC Insured
San Jose-Evergreen Community College District, Santa Clara
County, California, General Obligation Bonds, Series 2005A:
340 5.000%, 9/01/25 - MBIA Insured 9/15 at 100.00 AAA 367,652
495 5.000%, 9/01/27 - MBIA Insured 9/15 at 100.00 AAA 532,719
2,200 Santa Maria Joint Union High School District, Santa Barbara No Opt. Call Aaa 2,686,024
and San Luis Obispo Counties, California, General Obligation
Bonds, Series 2003B, 5.625%, 8/01/24 - FSA Insured
1,440 Southwestern Community College District, San Diego County, 8/15 at 102.00 AAA 1,580,688
California, General Obligation Bonds, Series 2005,
5.000%, 8/01/24 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 23.8% (15.9% OF TOTAL INVESTMENTS)
California, Economic Recovery Revenue Bonds, Series 2004A:
4,170 5.000%, 7/01/15 7/14 at 100.00 AA- 4,603,221
2,500 5.000%, 7/01/16 7/11 at 100.00 AA- 2,698,250
1,575 California State Public Works Board, Lease Revenue Bonds, 12/13 at 100.00 A- 1,754,156
Department of General Services, Series 2003D,
5.500%, 6/01/20
3,010 California State Public Works Board, Lease Revenue Bonds, 6/14 at 100.00 A- 3,374,601
Department of Mental Health, Coalinga State Hospital,
Series 2004A, 5.500%, 6/01/19
5,045 California State Public Works Board, Lease Revenue Bonds, 3/12 at 100.00 AAA 5,440,225
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 2,680,900
Revenue Bonds, Series 1999A, 5.000%, 9/01/20 - FSA Insured
Hesperia Community Redevelopment Agency, California,
Tax Allocation Bonds, Series 2005A:
310 5.000%, 9/01/20 - XLCA Insured 9/15 at 100.00 AAA 335,742
1,750 5.000%, 9/01/25 - XLCA Insured 9/15 at 100.00 AAA 1,869,998
26
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,395 Moreno Valley Unified School District, Riverside County, 3/14 at 100.00 AAA $ 1,497,281
California, Certificates of Participation, Series 2005,
5.000%, 3/01/22 - FSA Insured
2,000 Oakland Redevelopment Agency, California, Subordinate 3/13 at 100.00 AAA 2,241,140
Lien Tax Allocation Bonds, Central District Redevelopment
Project, Series 2003, 5.500%, 9/01/15 - FGIC Insured
1,000 Paramount Redevelopment Agency, California, Tax Allocation 8/13 at 100.00 AAA 1,066,200
Bonds, Redevelopment Project Area 1, Series 2003,
5.000%, 8/01/23 - MBIA Insured
4,000 Puerto Rico Highway and Transportation Authority, Highway 7/12 at 100.00 A 4,303,480
Revenue Bonds, Series 2002D, 5.375%, 7/01/36
350 Rialto Redevelopment Agency, California, Tax Allocation 9/15 at 100.00 AAA 369,306
Bonds, Merged Project Area, Series 2005A,
5.000%, 9/01/35 - XLCA Insured
235 Riverside County Public Financing Authority, California, 10/15 at 100.00 AAA 248,632
Tax Allocation Bonds, Multiple Projects, Series 2005A,
5.000%, 10/01/35 (WI, settling 9/08/05) - XLCA Insured
1,000 Sacramento City Financing Authority, California, Lease Revenue No Opt. Call AAA 1,151,080
Refunding Bonds, Series 1993A, 5.400%, 11/01/20 -
MBIA Insured
Santa Clara Redevelopment Agency, California, Tax Allocation
Bonds, Bayshore North Project, Series 2003:
3,850 5.000%, 6/01/19 - MBIA Insured 6/13 at 100.00 AAA 4,137,364
2,695 5.000%, 6/01/20 - MBIA Insured 6/13 at 100.00 AAA 2,888,690
1,500 5.000%, 6/01/21 - MBIA Insured 6/13 at 100.00 AAA 1,604,700
Sweetwater Union High School District, San Diego County,
California, Certificates of Participation, Series 2002:
2,000 5.000%, 9/01/23 - FSA Insured 9/12 at 102.00 AAA 2,142,900
4,015 5.000%, 9/01/24 - FSA Insured 9/12 at 102.00 AAA 4,301,872
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 28.2% (18.9% OF TOTAL INVESTMENTS)
5,360 California Infrastructure Economic Development Bank, 7/13 at 100.00 AAA 5,803,326
First Lien Revenue Bonds, San Francisco Bay Area Toll
Bridge, Series 2003A, 5.000%, 7/01/23 - FSA Insured
6,500 Foothill/Eastern Transportation Corridor Agency, California, 1/14 at 101.00 BBB- 5,585,905
Toll Road Revenue Refunding Bonds, Series 1999,
0.000%, 1/15/29
Long Beach, California, Harbor Revenue Bonds, Series 2000A:
2,740 5.750%, 5/15/14 (Alternative Minimum Tax) 5/10 at 101.00 AA- 3,019,535
11,885 5.750%, 5/15/15 (Alternative Minimum Tax) 5/10 at 101.00 AA- 12,965,822
2,500 Orange County, California, Airport Revenue Refunding Bonds, 7/13 at 100.00 AAA 2,704,125
John Wayne Airport, Series 2003, 5.000%, 7/01/17 -
FSA Insured
8,550 Port of Oakland, California, Revenue Bonds, Series 2000K, 5/10 at 100.00 AAA 9,235,454
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 1,532,678
5.250%, 11/01/20 - FGIC Insured
14,000 San Francisco Airports Commission, California, Revenue Bonds, 5/10 at 101.00 AAA 14,967,540
San Francisco International Airport, Second Series 2000,
Issue 25, 5.500%, 5/01/24 (Alternative Minimum Tax) -
FSA Insured
2,000 San Francisco Airports Commission, California, Revenue 5/11 at 100.00 AAA 2,098,860
Refunding Bonds, San Francisco International Airport,
Second Series 2001, Issue 27B, 5.000%, 5/01/23 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 17.8% (11.8% OF TOTAL INVESTMENTS)
3,000 California Health Facilities Financing Authority, Revenue 12/09 at 101.00 A3*** 3,391,050
Bonds, Cedars-Sinai Medical Center, Series 1999A,
6.125%, 12/01/30 (Pre-refunded to 12/01/09)
4,000 Contra Costa County, California, GNMA Mortgage-Backed No Opt. Call AAA 5,838,920
Securities Program Home Mortgage Revenue Bonds,
Series 1988, 8.250%, 6/01/21 (Alternative Minimum Tax)
3,750 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 Aaa 4,259,925
Enhanced Tobacco Settlement Asset-Backed Bonds,
Series 2003B, 5.500%, 6/01/33 (Pre-refunded to 6/01/13)
2,500 Hawthorne School District, Los Angeles County, California, 11/08 at 102.00 AAA 2,739,900
General Obligation Bonds, Series 1997A, 5.500%, 5/01/22
(Pre-refunded to 11/01/08) - FGIC Insured
8,000 Los Angeles Unified School District, California, General 7/10 at 100.00 AAA 8,824,000
Obligation Bonds, Series 2000D, 5.375%, 7/01/25
(Pre-refunded to 7/01/10) - FGIC Insured
27
Nuveen California Performance Plus Municipal Fund, Inc. (NCP) (continued)
Portfolio of INVESTMENTS August 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** (continued)
$ 7,100 Orange County, California, Recovery Certificates of Participation, 7/06 at 102.00 AAA $ 7,426,387
Series 1996A, 6.000%, 7/01/26 (Pre-refunded to 7/01/06) -
MBIA Insured
Riverside Community College District, California, General
Obligation Bonds, Series 2004A:
1,470 5.250%, 8/01/25 (Pre-refunded to 8/01/14) - MBIA Insured 8/14 at 100.00 AAA 1,666,142
1,960 5.250%, 8/01/26 (Pre-refunded to 8/01/14) - MBIA Insured 8/14 at 100.00 AAA 2,221,523
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 14.1% (9.4% OF TOTAL INVESTMENTS)
5,250 California Department of Water Resources, Power Supply 5/12 at 101.00 A2 5,656,613
Revenue Bonds, Series 2002A, 5.125%, 5/01/18
4,945 California Statewide Community Development Authority, 12/05 at 101.50 N/R 5,046,125
Certificates of Participation Refunding, Rio Bravo Fresno
Project, Series 1999A, 6.300%, 12/01/18
725 Los Angeles Department of Water and Power, California, 7/13 at 100.00 AAA 787,321
Power System Revenue Bonds, Series 2003A-2,
5.000%, 7/01/21 - MBIA Insured
4,100 Merced Irrigation District, California, Revenue Refunding Bonds, 9/05 at 102.00 Baa3 4,188,560
Electric System Project, Series 2001, 6.750%, 9/01/31
10,450 Orange County Public Financing Authority, California, No Opt. Call Aaa 11,555,192
Waste Management System Revenue Refunding Bonds,
Series 1997, 5.250%, 12/01/13 (Alternative Minimum Tax) -
AMBAC Insured
500 Sacramento Municipal Utility District, California, Electric 8/12 at 100.00 AAA 547,460
Revenue Refunding Bonds, Series 2002Q, 5.250%, 8/15/22 -
FSA Insured
1,000 Sacramento Municipal Utility District, California, Electric No Opt. Call AAA 1,103,050
Revenue Bonds, Series 2004T, 5.250%, 5/15/23 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 15.3% (10.2% OF TOTAL INVESTMENTS)
2,500 California Department of Water Resources, Water System 6/13 at 100.00 AAA 2,791,000
Revenue Bonds, Central Valley Project, Series 2003Y,
5.250%, 12/01/16 - FGIC Insured
1,000 California Statewide Community Development Authority, 10/13 at 100.00 AAA 1,093,160
Water and Wastewater Revenue Bonds, Pooled Financing
Program, Series 2003A, 5.250%, 10/01/23 - FSA Insured
4,770 Los Angeles Department of Water and Power, California, 7/14 at 100.00 AAA 5,301,664
Waterworks Revenue Bonds, Series 2004C, 5.250%, 7/01/20 -
MBIA Insured
2,500 Pajaro Valley Water Management Agency, California, 3/09 at 101.00 AAA 2,711,950
Revenue Certificates of Participation, Series 1999A,
5.750%, 3/01/29 - AMBAC Insured
5,985 Sacramento County Sanitation District Financing Authority, 12/10 at 101.00 AA 6,624,258
California, Revenue Bonds, Series 2000A, 5.250%, 12/01/12
4,000 Sacramento County Sanitation District Financing Authority, No Opt. Call AAA 4,727,680
California, Revenue Refunding Bonds, Series 2001,
5.500%, 12/01/20 - AMBAC Insured
4,585 Santa Maria, California, Subordinate Water and Wastewater 8/12 at 101.00 AAA 5,176,098
Revenue Certificates of Participation, Series 1997A,
5.550%, 8/01/27 - AMBAC Insured
1,700 South Gate Utility Authority, California, Subordinate Revenue 10/11 at 102.00 AAA 1,815,770
Bonds, Water and Sewer System Projects, Series 2001,
5.000%, 10/01/22 - FGIC Insured
945 Woodbridge Irrigation District, California, Certificates of 7/13 at 100.00 BBB+ 1,000,960
Participation, Water Systems Project, Series 2003,
5.625%, 7/01/43
------------------------------------------------------------------------------------------------------------------------------------
$ 285,895 Total Long-Term Investments (cost $284,348,825) - 150.0% 307,088,007
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.8% 3,604,060
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (51.8)% (106,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 204,692,067
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
* Optional Call Provisions (not covered by the report of
independent registered public accounting firm): 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 (not covered by the report of independent
registered public accounting firm): 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.
28
Nuveen California Municipal Market Opportunity Fund, Inc. (NCO)
Portfolio of
INVESTMENTS August 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 4.5% (3.0% OF TOTAL INVESTMENTS)
$ 3,635 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 Baa3 $ 3,724,276
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 BBB 2,234,320
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.250%, 6/01/33
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 7.4% (4.9% OF TOTAL INVESTMENTS)
1,000 California Infrastructure Economic Development Bond Bank, 7/15 at 100.00 Aa3 1,070,090
Revenue Bonds, Scripps Research Institute, Series 2005A,
5.000%, 7/01/24
1,530 University of California, Certificates of Participation, San Diego 1/10 at 101.00 Aa2 1,624,156
and Sacramento Campus Projects, Series 2002A,
5.250%, 1/01/20
6,580 University of California, Revenue Bonds, Multiple Purpose 9/08 at 101.00 AA 6,995,922
Projects, Series 2000K, 5.000%, 9/01/13
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 11.1% (7.4% OF TOTAL INVESTMENTS)
485 California Health Facilities Financing Authority, Revenue Bonds, 11/15 at 100.00 A3 502,188
Cedars-Sinai Medical Center, Series 2005, 5.000%, 11/15/34
3,200 California Infrastructure Economic Development Bank, Revenue 8/11 at 102.00 A+ 3,432,608
Bonds, Kaiser Hospital Assistance LLC, Series 2001A,
5.550%, 8/01/31
California Statewide Community Development Authority, Revenue
Bonds, Daughters of Charity Health System, Series 2005A:
190 5.250%, 7/01/24 7/15 at 100.00 BBB+ 201,444
400 5.250%, 7/01/35 7/15 at 100.00 BBB+ 419,000
1,000 California Statewide Community Development Authority, Revenue No Opt. Call AAA 1,096,150
Bonds, Sherman Oaks Health System, Series 1998A,
5.000%, 8/01/22 - AMBAC Insured
5,930 Central California Joint Powers Health Finance Authority, 2/06 at 100.00 Baa2 5,931,008
Certificates of Participation, Community Hospitals of
Central California, Series 1993, 5.000%, 2/01/23
3,000 Loma Linda, California, Hospital Revenue Bonds, Loma Linda 12/05 at 100.00 BBB- 3,011,310
University Medical Center, Series 1993A, 6.500%, 12/01/18
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.2% (0.8% OF TOTAL INVESTMENTS)
1,550 San Bernardino County Housing Authority, California, No Opt. Call BBB+ 1,636,738
Multifamily Housing Revenue Refunding Bonds, Equity
Residential Properties/Redlands Lawn and Tennis
Apartments, Series 1999A, 5.200%, 6/15/29 (Mandatory
put 6/15/09)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 25.1% (16.6% OF TOTAL INVESTMENTS)
4,125 Alameda Unified School District, Alameda County, California, No Opt. Call AAA 1,683,743
General Obligation Bonds, Series 2004A, 0.000%, 8/01/25 -
FSA Insured
California, General Obligation Bonds, Series 2003:
1,000 5.250%, 11/01/19 - RAAI Insured 11/13 at 100.00 AA 1,107,220
1,400 5.250%, 2/01/20 8/13 at 100.00 A 1,540,938
1,000 5.250%, 2/01/22 - CIFG Insured 8/13 at 100.00 AAA 1,085,840
California, General Obligation Bonds, Series 2004:
3,000 5.000%, 2/01/23 2/14 at 100.00 A 3,198,150
2,500 5.125%, 4/01/23 4/14 at 100.00 A 2,697,825
2,100 5.250%, 4/01/34 4/14 at 100.00 A 2,314,704
860 Los Angeles Community College District, Los Angeles County, 8/15 at 100.00 AAA 926,521
California, General Obligation Bonds, Series 2005A,
5.000%, 6/01/26 - FSA Insured
4,100 Monrovia Unified School District, Los Angeles County, California, No Opt. Call AAA 1,519,706
General Obligation Bonds, Series 2001B, 0.000%, 8/01/27 -
FGIC Insured
29
Nuveen California Municipal Market Opportunity Fund, Inc. (NCO) (continued)
Portfolio of INVESTMENTS August 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 2,500 Oakland Unified School District, Alameda County, California, 8/12 at 100.00 AAA $ 2,736,100
General Obligation Bonds, Series 2002, 5.250%, 8/01/21 -
FGIC Insured
Oakland Unified School District, Alameda County, California,
General Obligation Bonds, Series 2005:
280 5.000%, 8/01/25 - MBIA Insured 8/15 at 100.00 AAA 301,893
295 5.000%, 8/01/26 - MBIA Insured 8/15 at 100.00 AAA 316,818
1,000 Pomona Unified School District, Los Angeles County, California, 8/11 at 103.00 AAA 1,177,630
General Obligation Refunding Bonds, Series 1997A,
6.150%, 8/01/15 - MBIA Insured
2,620 Rancho Santiago Community College District, Orange County, 9/15 at 100.00 AAA 2,819,644
California, General Obligation Bonds, Series 2005B,
5.000%, 9/01/27 - FSA Insured
25 Riverside Community College District, California, General 8/14 at 100.00 AAA 27,590
Obligation Bonds, Series 2004A, 5.250%, 8/01/24 -
MBIA Insured
5,000 San Diego Unified School District, California, General Obligation 7/10 at 100.00 AAA 5,433,450
Bonds, Election of 1998, Series 2000B, 5.125%, 7/01/21 -
MBIA Insured
San Jose-Evergreen Community College District, Santa Clara
County, California, General Obligation Bonds, Series 2005A:
220 5.000%, 9/01/25 - MBIA Insured 9/15 at 100.00 AAA 237,893
320 5.000%, 9/01/27 - MBIA Insured 9/15 at 100.00 AAA 344,384
4,970 San Rafael City High School District, Marin County, California, No Opt. Call AAA 1,854,059
General Obligation Bonds, Series 2004B, 0.000%, 8/01/27 -
FGIC Insured
4,175 Southwestern Community College District, San Diego County, No Opt. Call AAA 1,704,152
California, General Obligation Bonds, Series 2004,
0.000%, 8/01/25 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 34.2% (22.6% OF TOTAL INVESTMENTS)
California, Economic Recovery Revenue Bonds, Series 2004A:
2,700 5.000%, 7/01/15 7/14 at 100.00 AA- 2,980,503
2,000 5.000%, 7/01/16 7/11 at 100.00 AA- 2,158,600
2,000 California State Public Works Board, Lease Revenue Bonds, 6/14 at 100.00 A- 2,242,260
Department of Mental Health, Coalinga State Hospital,
Series 2004A, 5.500%, 6/01/19
195 Hesperia Community Redevelopment Agency, California, Tax 9/15 at 100.00 AAA 211,193
Allocation Bonds, Series 2005A, 5.000%, 9/01/20 -
XLCA Insured
1,065 Los Angeles County Public Works Financing Authority, 10/07 at 101.00 AA 1,116,429
California, Revenue Bonds, Regional Park and Open Space
District, Series 1997A, 5.000%, 10/01/19
Modesto Schools Infrastructure Financing Agency, Stanislaus
County, California, Special Tax Revenue Bonds, Series 2004:
1,375 5.250%, 9/01/25 - AMBAC Insured 9/14 at 100.00 AAA 1,512,019
1,500 5.250%, 9/01/26 - AMBAC Insured 9/14 at 100.00 AAA 1,643,520
2,000 Monterey County, California, Certificates of Participation, 8/11 at 100.00 Aaa 2,107,080
Master Plan Financing, Series 2001, 5.000%, 8/01/21 -
MBIA Insured
1,000 Ontario, California, Special Tax Bonds, Community Facilities 9/06 at 102.00 N/R 1,036,520
District 5, Freeway Interchange Project, Series 1997,
6.375%, 9/01/17
10,900 Ontario Redevelopment Financing Authority, San Bernardino No Opt. Call AAA 15,294,771
County, California, Revenue Refunding Bonds, Redevelopment
Project 1, Series 1995, 7.400%, 8/01/25 - MBIA Insured
225 Rialto Redevelopment Agency, California, Tax Allocation Bonds, 9/15 at 100.00 AAA 237,411
Merged Project Area, Series 2005A, 5.000%, 9/01/35 -
XLCA Insured
150 Riverside County Public Financing Authority, California, 10/15 at 100.00 AAA 158,702
Tax Allocation Bonds, Multiple Projects, Series 2005A,
5.000%, 10/01/35 (WI, settling 9/08/05) - XLCA Insured
2,500 Sacramento City Financing Authority, California, Lease No Opt. Call AAA 2,924,575
Revenue Refunding Bonds, Series 1993A,
5.400%, 11/01/20 - AMBAC Insured
2,255 San Bernardino County, California, Certificates of Participation, 2/06 at 102.00 AAA 2,304,655
Medical Center Financing Project, Series 1995,
5.500%, 8/01/22 - MBIA Insured
1,200 San Jose Financing Authority, California, Lease Revenue 9/11 at 100.00 AAA 1,284,588
Refunding Bonds, Convention Center Project,
Series 2001F, 5.000%, 9/01/20 - MBIA Insured
30
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 7,000 Union City Community Redevelopment Agency, California, 10/09 at 101.00 AAA $ 7,691,460
Tax Allocation Revenue Bonds, Redevelopment Project,
Series 1999, 5.750%, 10/01/32 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 25.6% (17.0% OF TOTAL INVESTMENTS)
4,000 Foothill/Eastern Transportation Corridor Agency, California, 1/14 at 101.00 BBB- 3,437,480
Toll Road Revenue Refunding Bonds, Series 1999,
0.000%, 1/15/29
8,500 Long Beach, California, Harbor Revenue Bonds, Series 2000A, 5/10 at 101.00 AA- 9,367,170
5.750%, 5/15/14 (Alternative Minimum Tax)
5,250 Port of Oakland, California, Revenue Bonds, Series 2000K, 5/10 at 100.00 AAA 5,670,893
5.750%, 11/01/29 (Alternative Minimum Tax) - FGIC Insured
5,000 Sacramento County, California, Airport System Revenue 7/06 at 102.00 AAA 5,204,100
Bonds, Series 1996A, 5.900%, 7/01/24 (Alternative
Minimum Tax) - MBIA Insured
San Francisco Airports Commission, California, Revenue
Bonds, San Francisco International Airport, Second
Series 2000, Issue 25:
2,515 5.500%, 5/01/24 (Alternative Minimum Tax) - FSA Insured 5/10 at 101.00 AAA 2,688,812
3,100 5.750%, 5/01/30 (Alternative Minimum Tax) - FSA Insured 5/10 at 101.00 AAA 3,374,474
2,465 San Francisco Airports Commission, California, Special 1/08 at 102.00 AAA 2,654,953
Facilities Lease Revenue Bonds, San Francisco International
Airport, SFO Fuel Company LLC, Series 2000A,
6.125%, 1/01/27 (Alternative Minimum Tax) - FSA Insured
1,250 San Francisco Airports Commission, California, Revenue Bonds, 5/10 at 101.00 AAA 1,332,863
San Francisco International Airport, Second Series 2000,
Issue 26B, 5.000%, 5/01/21 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 15.9% (10.6% OF TOTAL INVESTMENTS)
2,000 California Health Facilities Financing Authority, Revenue 12/09 at 101.00 A3*** 2,260,700
Bonds, Cedars-Sinai Medical Center, Series 1999A,
6.125%, 12/01/30 (Pre-refunded to 12/01/09)
4,950 California, Various Purpose General Obligation Bonds, 3/10 at 101.00 AAA 5,536,823
Series 2000, 5.750%, 3/01/27 (Pre-refunded to 3/01/10) -
MBIA Insured
5,000 Los Angeles Unified School District, California, General 7/10 at 100.00 AAA 5,515,000
Obligation Bonds, Series 2000D, 5.375%, 7/01/25
(Pre-refunded to 7/01/10) - FGIC Insured
4,000 Pomona, California, GNMA/FHLMC Collateralized Single No Opt. Call AAA 5,425,360
Family Mortgage Revenue Refunding Bonds, Series 1990B,
7.500%, 8/01/23
1,975 Riverside Community College District, California, General 8/14 at 100.00 AAA 2,238,524
Obligation Bonds, Series 2004A, 5.250%, 8/01/24
(Pre-refunded to 8/01/14) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 8.7% (5.8% OF TOTAL INVESTMENTS)
1,500 California Pollution Control Financing Authority, Revenue 9/09 at 101.00 AAA 1,617,150
Refunding Bonds, Southern California Edison Company,
Series 1999A, 5.450%, 9/01/29 - MBIA Insured
3,000 California Department of Water Resources, Power Supply 5/12 at 101.00 A2 3,232,350
Revenue Bonds, Series 2002A, 5.125%, 5/01/18
3,310 California Statewide Community Development Authority, 12/05 at 101.50 N/R 3,377,690
Certificates of Participation Refunding, Rio Bravo Fresno
Project, Series 1999A, 6.300%, 12/01/18
500 Los Angeles Department of Water and Power, California, 7/13 at 100.00 AAA 542,980
Power System Revenue Bonds, Series 2003A-2,
5.000%, 7/01/21 - MBIA Insured
Merced Irrigation District, California, Revenue Refunding
Bonds, Electric System Project, Series 2001:
1,650 6.750%, 9/01/31 9/05 at 102.00 Baa3 1,685,640
1,000 6.850%, 9/01/36 9/05 at 102.00 Baa3 1,021,680
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 17.1% (11.3% OF TOTAL INVESTMENTS)
3,330 California Department of Water Resources, Water System 12/11 at 100.00 AA 3,718,578
Revenue Bonds, Central Valley Project, Series 2001W,
5.500%, 12/01/15
1,030 California Department of Water Resources, Water System No Opt. Call AAA 1,207,345
Revenue Bonds, Central Valley Project, Series 2002X,
5.500%, 12/01/17 - FGIC Insured
31
Nuveen California Municipal Market Opportunity Fund, Inc. (NCO) (continued)
Portfolio of INVESTMENTS August 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 4,000 Los Angeles, California, Wastewater System Revenue Bonds, 11/05 at 100.00 AAA $ 4,004,920
Series 1993D, 4.700%, 11/01/19 - FGIC Insured
2,000 San Francisco City and County Public Utilities Commission, 4/13 at 100.00 AAA 2,218,640
California, Clean Water Revenue Refunding Bonds,
Series 2003A, 5.250%, 10/01/20 - MBIA Insured
10,000 Santa Maria, California, Subordinate Water and Wastewater 8/12 at 101.00 AAA 11,289,195
Revenue Certificates of Participation, Series 1997A,
5.550%, 8/01/27 - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
$ 191,380 Total Long-Term Investments (cost $179,360,002) - 150.8% 198,435,076
===============--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.9% 1,151,587
-------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (51.7)% (68,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 131,586,663
===================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
* Optional Call Provisions (not covered by the report of
independent registered public accounting firm): 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 (not covered by the report of independent
registered public accounting firm): 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.
32
Nuveen California Investment Quality Municipal Fund, Inc. (NQC)
Portfolio of
INVESTMENTS August 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 0.5% (0.3% OF TOTAL INVESTMENTS)
$ 1,000 Tobacco Securitization Authority of Southern California, 6/12 at 100.00 BBB $ 1,030,570
Tobacco Settlement Asset-Backed Bonds, San Diego County
Tobacco Asset Securitization Corporation, Senior
Series 2001A, 5.500%, 6/01/36
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 14.9% (9.9% OF TOTAL INVESTMENTS)
2,250 California Educational Facilities Authority, Revenue Bonds, 10/06 at 102.00 AAA 2,334,803
Chapman University, Series 1996, 5.125%, 10/01/26 -
CONNIE LEE/AMBAC Insured
3,000 California Educational Facilities Authority, Revenue Bonds, 11/10 at 100.00 Aaa 3,325,320
University of the Pacific, Series 2000, 5.750%, 11/01/30 -
MBIA Insured
6,000 California State Public Works Board, Lease Revenue Bonds, 10/07 at 102.00 A2 6,315,540
California State University Projects, Series 1997C,
5.400%, 10/01/22
2,500 Long Beach Bond Financing Authority, California, Lease 11/11 at 101.00 AAA 2,682,350
Revenue Refunding Bonds, Long Beach Aquarium of the
South Pacific, Series 2001, 5.250%, 11/01/30 - AMBAC Insured
2,540 University of California, Revenue Bonds, Research Facilities, 9/09 at 101.00 AAA 2,689,504
Series 2001E, 5.000%, 9/01/25 - AMBAC Insured
University of California, Revenue Bonds, Multi-Purpose
Projects, Series 2003A:
9,270 5.125%, 5/15/16 - AMBAC Insured 5/13 at 100.00 AAA 10,246,224
3,000 5.125%, 5/15/17 - AMBAC Insured 5/13 at 100.00 AAA 3,311,670
1,060 5.000%, 5/15/24 - AMBAC Insured 5/13 at 100.00 AAA 1,145,319
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 10.1% (6.7% OF TOTAL INVESTMENTS)
3,000 California Health Facilities Financing Authority, Revenue 7/14 at 100.00 A- 3,188,160
Bonds, Catholic Healthcare West, Series 2004G,
5.250%, 7/01/23
795 California Health Facilities Financing Authority, Revenue Bonds, 11/15 at 100.00 A3 823,175
Cedars-Sinai Medical Center, Series 2005, 5.000%, 11/15/34
California Statewide Community Development Authority, Revenue
Bonds, Daughters of Charity Health System, Series 2005A:
320 5.250%, 7/01/24 7/15 at 100.00 BBB+ 339,274
660 5.250%, 7/01/35 7/15 at 100.00 BBB+ 691,350
2,145 California Statewide Community Development Authority, No Opt. Call A+ 2,227,733
Revenue Bonds, Kaiser Permanente System, Series 2002E,
4.700%, 11/01/36 (Mandatory put 5/31/09)
Central California Joint Powers Health Finance Authority,
Certificates of Participation, Community Hospitals of Central
California, Series 1993:
1,595 5.250%, 2/01/13 2/06 at 100.00 Baa2 1,596,260
6,820 5.500%, 2/01/15 2/06 at 100.00 Baa2 6,826,206
5,000 Loma Linda, California, Hospital Revenue Bonds, Loma Linda 12/05 at 100.00 BBB- 5,018,850
University Medical Center, Series 1993A, 6.500%, 12/01/18
1,000 Stockton, California, Health Facility Revenue Bonds, Dameron 12/07 at 102.00 BBB+ 1,052,020
Hospital Association, Series 1997A, 5.700%, 12/01/14
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 2.4% (1.6% OF TOTAL INVESTMENTS)
3,000 California Statewide Community Development Authority, 7/08 at 101.00 BBB 3,098,580
Revenue Refunding Bonds, Irvine Apartment Communities
Development, Series 1998A, 4.900%, 5/15/25 (Mandatory
put 5/15/08)
2,000 Daly City Housing Development Finance Agency, California, 12/13 at 102.00 A- 2,105,000
Mobile Home Park Revenue Bonds, Franciscan Mobile
Home Park Project, Series 2002A, 5.850%, 12/15/32
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.4% (1.0% OF TOTAL INVESTMENTS)
2,945 California Statewide Community Development Authority, 4/09 at 101.00 BBB 3,034,675
Certificates of Participation, Internext Group, Series 1999,
5.375%, 4/01/17
33
Nuveen California Investment Quality Municipal Fund, Inc. (NQC) (continued)
Portfolio of INVESTMENTS August 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 19.8% (13.1% OF TOTAL INVESTMENTS)
$ 4,075 California, Various Purpose General Obligation Bonds, 9/10 at 100.00 A $ 4,362,858
Series 2000, 5.250%, 9/01/20
2,400 California, General Obligation Bonds, Series 2003, 5.250%, 2/01/20 8/13 at 100.00 A 2,641,608
California, General Obligation Bonds, Series 2004:
1,000 5.000%, 2/01/21 2/14 at 100.00 A 1,071,940
3,150 5.250%, 4/01/34 4/14 at 100.00 A 3,472,056
2,395 Fontana Unified School District, San Bernardino County, 5/09 at 102.00 AAA 2,661,324
California, General Obligation Refunding Bonds,
Series 1997D, 5.800%, 5/01/17 - FGIC Insured
3,000 Fresno Unified School District, Fresno County, California, No Opt. Call AAA 3,812,490
General Obligation Bonds, Series 2002A, 6.000%, 8/01/26 -
MBIA Insured
10,060 Los Angeles, California, General Obligation Bonds, 9/11 at 100.00 AA 10,791,463
Series 2001A, 5.000%, 9/01/21
1,385 Los Angeles Community College District, Los Angeles County, 8/15 at 100.00 AAA 1,492,130
California, General Obligation Bonds, Series 2005A,
5.000%, 6/01/26 - FSA Insured
2,285 Moreno Valley Unified School District, Riverside County, 8/14 at 100.00 AAA 2,521,703
California, General Obligation Bonds, Series 2004A,
5.250%, 8/01/24 - FSA Insured
Oakland Unified School District, Alameda County, California,
General Obligation Bonds, Series 2005:
460 5.000%, 8/01/25 - MBIA Insured 8/15 at 100.00 AAA 495,967
480 5.000%, 8/01/26 - MBIA Insured 8/15 at 100.00 AAA 515,501
3,250 Puerto Rico, General Obligation and Public Improvement No Opt. Call AAA 3,869,872
Bonds, Series 2001A, 5.500%, 7/01/20 - MBIA Insured
20 Riverside Community College District, California, General 8/14 at 100.00 AAA 22,183
Obligation Bonds, Series 2004A, 5.250%, 8/01/21 -
MBIA Insured
3,500 San Diego Unified School District, San Diego County, 7/13 at 101.00 AAA 3,923,815
California, General Obligation Bonds, Series 2003E,
5.250%, 7/01/24 - FSA Insured
San Jose-Evergreen Community College District, Santa Clara
County, California, General Obligation Bonds, Series 2005A:
360 5.000%, 9/01/25 - MBIA Insured 9/15 at 100.00 AAA 389,279
525 5.000%, 9/01/27 - MBIA Insured 9/15 at 100.00 AAA 565,005
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 35.6% (23.6% OF TOTAL INVESTMENTS)
4,460 California, Economic Recovery Revenue Bonds, Series 2004A, 7/14 at 100.00 AA- 4,923,349
5.000%, 7/01/15
3,135 California State Public Works Board, Lease Revenue Bonds, 12/12 at 100.00 AAA 3,470,539
Department of General Services, Capital East End Project,
Series 2002A, 5.250%, 12/01/15 - AMBAC Insured
3,000 California State Public Works Board, Lease Revenue Bonds, 6/14 at 100.00 A- 3,358,650
Department of Mental Health, Coalinga State Hospital,
Series 2004A, 5.500%, 6/01/20
3,000 California State Public Works Board, Lease Revenue Bonds, 12/11 at 102.00 AAA 3,225,840
Department of Mental Health, Hospital Addition,
Series 2001A, 5.000%, 12/01/21 - AMBAC Insured
1,595 Fontana Public Financing Authority, California, Tax Allocation 9/11 at 101.00 AAA 1,746,764
Revenue Bonds, North Fontana Redevelopment Project,
Series 2003A, 5.375%, 9/01/25 - AMBAC Insured
325 Hesperia Community Redevelopment Agency, California, 9/15 at 100.00 AAA 351,988
Tax Allocation Bonds, Series 2005A, 5.000%, 9/01/20 -
XLCA Insured
Los Angeles County Metropolitan Transportation Authority,
California, Proposition C Second Senior Lien Sales Tax Revenue
Bonds, Series 2000A:
8,005 5.250%, 7/01/25 - FGIC Insured 7/10 at 101.00 AAA 8,653,085
6,500 5.250%, 7/01/30 - FGIC Insured 7/10 at 101.00 AAA 7,026,240
1,250 Los Angeles County Public Works Financing Authority, 12/15 at 100.00 AAA 1,344,925
California, Lease Revenue Bonds, Master Refunding Project,
Series 2005A, 5.000%, 12/01/25 - MBIA Insured
4,130 Manteca Unified School District, San Joaquin County, 9/11 at 101.00 AAA 4,449,910
California, Special Tax Bonds, Community Facilities
District 89-2, Series 2001C, 5.000%, 9/01/23 - MBIA Insured
1,685 Ontario, California, Special Tax Bonds, Community 9/06 at 102.00 N/R 1,746,536
Facilities District 5, Freeway Interchange Project,
Series 1997, 6.375%, 9/01/17
3,890 Ontario Redevelopment Financing Authority, California, 8/11 at 101.00 AAA 4,224,462
Lease Revenue Bonds, Capital Projects, Series 2001,
5.000%, 8/01/21 - AMBAC Insured
34
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 3,600 Ontario Redevelopment Financing Authority, San Bernardino No Opt. Call AAA $ 5,051,484
County, California, Revenue Refunding Bonds,
Redevelopment Project 1, Series 1995, 7.400%, 8/01/25 -
MBIA Insured
1,500 Orange County, California, Special Tax Bonds, Community 8/12 at 101.00 N/R 1,563,375
Facilities District 03-1 of Ladera Ranch, Series 2004A,
5.625%, 8/15/34
1,000 Paramount Redevelopment Agency, California, Tax Allocation 8/13 at 100.00 AAA 1,066,200
Bonds, Redevelopment Project Area 1, Series 2003,
5.000%, 8/01/23 - MBIA Insured
4,000 Puerto Rico Highway and Transportation Authority, Highway 7/12 at 100.00 A 4,303,480
Revenue Bonds, Series 2002D, 5.375%, 7/01/36
370 Rialto Redevelopment Agency, California, Tax Allocation Bonds, 9/15 at 100.00 AAA 390,409
Merged Project Area, Series 2005A, 5.000%, 9/01/35 -
XLCA Insured
245 Riverside County Public Financing Authority, California, 10/15 at 100.00 AAA 259,212
Tax Allocation Bonds, Multiple Projects, Series 2005A,
5.000%, 10/01/35 (WI, settling 9/08/05) - XLCA Insured
4,000 Sacramento City Financing Authority, California, Lease No Opt. Call AAA 4,679,320
Revenue Refunding Bonds, Series 1993A,
5.400%, 11/01/20 - AMBAC Insured
3,535 San Jose Financing Authority, California, Lease Revenue 9/11 at 100.00 AAA 3,784,182
Refunding Bonds, Convention Center Project, Series 2001F,
5.000%, 9/01/20 - MBIA Insured
2,000 San Jose Financing Authority, California, Lease Revenue 6/12 at 100.00 AAA 2,196,700
Refunding Bonds, Civic Center Project, Series 2002B,
5.250%, 6/01/19 - AMBAC Insured
2,840 Santa Clara Redevelopment Agency, California, Tax Allocation 6/13 at 100.00 AAA 3,024,572
Bonds, Bayshore North Project, Series 2003,
5.000%, 6/01/23 - MBIA Insured
5,250 Santa Cruz County Redevelopment Agency, California, 9/10 at 102.00 AAA 5,698,980
Subordinate Lien Tax Allocation Bonds, Live Oak and
Soquel Community Improvement Projects, Series 2000,
5.250%, 9/01/25 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 29.1% (19.4% OF TOTAL INVESTMENTS)
13,000 Alameda Corridor Transportation Authority, California, 10/09 at 101.00 AAA 13,503,230
Senior Lien Revenue Bonds, Series 1999A, 5.000%, 10/01/29 -
MBIA Insured
Bay Area Toll Authority, California, Revenue Bonds, San Francisco
Bay Area Toll Bridge, Series 2001D:
3,875 5.000%, 4/01/12 4/11 at 100.00 AA 4,200,074
2,605 5.000%, 4/01/16 4/11 at 100.00 AA 2,809,076
6,500 Foothill/Eastern Transportation Corridor Agency, California, 1/14 at 101.00 BBB- 5,585,905
Toll Road Revenue Refunding Bonds, Series 1999,
0.000%, 1/15/29
9,980 Long Beach, California, Harbor Revenue Bonds, Series 2000A, 5/10 at 101.00 AA- 10,652,053
5.500%, 5/15/25 (Alternative Minimum Tax)
9,000 Port of Oakland, California, Revenue Bonds, Series 2000K, 5/10 at 100.00 AAA 9,721,530
5.750%, 11/01/29 (Alternative Minimum Tax) - FGIC Insured
15,000 San Francisco Airports Commission, California, Revenue Bonds, 5/10 at 101.00 AAA 16,328,100
San Francisco International Airport, Second Series 2000,
Issue 24A, 5.750%, 5/01/30 (Alternative Minimum Tax) -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 19.3% (12.8% OF TOTAL INVESTMENTS)
2,110 California Health Facilities Financing Authority, Revenue Bonds, 10/08 at 101.00 AAA 2,263,819
Kaiser Permanente System, Series 1998B, 5.250%, 10/01/12
3,000 California Health Facilities Financing Authority, Revenue Bonds, 12/09 at 101.00 A3*** 3,391,050
Cedars-Sinai Medical Center, Series 1999A,
6.125%, 12/01/30 (Pre-refunded to 12/01/09)
13,300 California, Various Purpose General Obligation Bonds, 3/10 at 101.00 AAA 14,876,715
Series 2000, 5.750%, 3/01/27 (Pre-refunded to 3/01/10) -
MBIA Insured
670 California Department of Water Resources, Water System 12/11 at 100.00 AA*** 756,832
Revenue Bonds, Central Valley Project, Series 2001W,
5.500%, 12/01/16 (Pre-refunded to 12/01/11)
2,250 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 Aaa 2,574,923
Enhanced Tobacco Settlement Asset-Backed Bonds,
Series 2003B, 5.625%, 6/01/33 (Pre-refunded to 6/01/13)
2,500 Los Angeles Community Redevelopment Agency, California, 1/06 at 100.00 BBB*** 2,671,200
Tax Allocation Refunding Bonds, Central Business District
Redevelopment Project, Series 1987G, 6.750%, 7/01/10
35
Nuveen California Investment Quality Municipal Fund, Inc. (NQC) (continued)
Portfolio of INVESTMENTS August 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** (continued)
$ 1,100 Newhall School District, Los Angeles County, California, 8/12 at 101.00 AAA $ 1,250,469
General Obligation Bonds, Series 2002B, 5.375%, 8/01/22
(Pre-refunded to 8/01/12) - FSA Insured
2,745 Northridge Water District, California, Revenue Certificates of 2/11 at 101.00 AAA 3,057,161
Participation, Series 2001, 5.250%, 2/01/21 (Pre-refunded
to 2/01/11) - AMBAC Insured
8,225 Orange County, California, Recovery Certificates of 7/06 at 102.00 AAA 8,603,103
Participation, Series 1996A, 6.000%, 7/01/26 (Pre-refunded
to 7/01/06) - MBIA Insured
1,815 Riverside Community College District, California, General 8/14 at 100.00 AAA 2,057,175
Obligation Bonds, Series 2004A, 5.250%, 8/01/21
(Pre-refunded to 8/01/14) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 9.3% (6.2% OF TOTAL INVESTMENTS)
California Department of Water Resources, Power Supply
Revenue Bonds, Series 2002A:
3,600 5.375%, 5/01/17 - XLCA Insured 5/12 at 101.00 AAA 3,987,000
6,000 5.125%, 5/01/18 5/12 at 101.00 A2 6,464,700
5,000 Los Angeles Department of Water and Power, California, 7/11 at 100.00 AAA 5,408,500
Power System Revenue Bonds, Series 2001A-1,
5.250%, 7/01/20 - FSA Insured
700 Los Angeles Department of Water and Power, California, 7/13 at 100.00 AAA 760,172
Power System Revenue Bonds, Series 2003A-2,
5.000%, 7/01/21 - MBIA Insured
3,210 Turlock Irrigation District, California, Electric Revenue Bonds, 1/13 at 100.00 AAA 3,508,049
Series 2003A, 5.000%, 1/01/16 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 8.1% (5.4% OF TOTAL INVESTMENTS)
3,330 California Department of Water Resources, Water System 12/11 at 100.00 AA 3,725,537
Revenue Bonds, Central Valley Project, Series 2001W,
5.500%, 12/01/16
1,500 Los Angeles Department of Water and Power, California, 7/14 at 100.00 AAA 1,670,760
Waterworks Revenue Bonds, Series 2004C,
5.250%, 7/01/19 - MBIA Insured
3,015 Oxnard Financing Authority, California, Wastewater Revenue 6/13 at 100.00 AAA 3,304,500
Bonds, Series 2003, 5.000%, 6/01/17 - FGIC Insured
San Elijo Joint Powers Authority, San Diego County, California,
Revenue Refunding Bonds, San Elijo Wastewater Facilities, Series
2003:
1,245 5.000%, 3/01/16 - FSA Insured 3/12 at 101.00 AAA 1,353,888
1,310 5.000%, 3/01/17 - FSA Insured 3/12 at 101.00 AAA 1,422,974
3,430 Westlands Water District, California, Revenue Certificates 9/12 at 101.00 AAA 3,752,454
of Participation, Series 2002, 5.250%, 9/01/22 - MBIA Insured
2,155 Westlands Water District, California, Revenue Certificates 3/15 at 100.00 AAA 2,303,718
of Participation, Series 2005A, 5.000%, 9/01/25 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 299,730 Total Long-Term Investments (cost $300,343,538) - 150.5% 324,196,646
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.5% 3,249,687
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.0)% (112,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 215,446,333
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
* Optional Call Provisions (not covered by the report of
independent registered public accounting firm): 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 (not covered by the report of independent
registered public accounting firm): 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.
36
Nuveen California Select Quality Municipal Fund, Inc. (NVC)
Portfolio of
INVESTMENTS August 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 4.8% (3.2% OF TOTAL INVESTMENTS)
$ 4,625 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 Baa3 $ 4,797,281
Settlement Asset-Backed Bonds, Stanislaus County Tobacco
Funding Corporation, Series 2002A, 5.500%, 6/01/33
9,150 California Pollution Control Financing Authority, Sewerage 12/06 at 101.00 A+ 9,482,694
and Solid Waste Disposal Facilities Revenue Bonds,
Anheuser-Busch Companies Inc., Series 1996,
5.750%, 12/01/30 (Alternative Minimum Tax)
3,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB 3,461,670
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.750%, 6/01/39
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 2.4% (1.6% OF TOTAL INVESTMENTS)
1,595 California Infrastructure Economic Development Bank, 10/12 at 100.00 Aa3 1,697,096
Revenue Bonds, Claremont University Consortium,
Series 2003, 5.125%, 10/01/24
1,740 California Infrastructure Economic Development Bond Bank, 7/15 at 100.00 Aa3 1,861,957
Revenue Bonds, Scripps Research Institute, Series 2005A,
5.000%, 7/01/24
5,125 University of California, Revenue Bonds, Research Facilities, 9/09 at 101.00 AAA 5,454,230
Series 2001E, 5.000%, 9/01/22 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
ENERGY - 2.7% (1.8% OF TOTAL INVESTMENTS)
9,500 California Pollution Control Financing Authority, Exempt 12/06 at 102.00 AAA 9,933,960
Facilities Revenue Bonds, Mobil Oil Corporation,
Series 1996, 5.500%, 12/01/29 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 11.3% (7.5% OF TOTAL INVESTMENTS)
1,750 ABAG Finance Authority for Non-Profit Corporations, 4/12 at 100.00 A 1,893,710
California, Cal-Mortgage Insured Revenue Bonds, Sansum-
Santa Barbara Medical Foundation Clinic, Series 2002A,
5.500%, 4/01/21
545 California Health Facilities Financing Authority, Insured 1/06 at 101.00 AAA 548,265
Health Facility Revenue Refunding Bonds, Catholic
Healthcare West, Series 1994A, 4.750%, 7/01/19 -
MBIA Insured
1,365 California Health Facilities Financing Authority, Revenue 11/15 at 100.00 A3 1,413,376
Bonds, Cedars-Sinai Medical Center, Series 2005,
5.000%, 11/15/34
5,000 California Statewide Community Development Authority, 7/07 at 102.00 AA- 5,202,500
Certificates of Participation Refunding, St. Joseph Health
System, Series 1997, 5.125%, 7/01/17
14,000 California Statewide Community Development Authority, 7/10 at 101.00 A- 15,724,380
Certificates of Participation, Catholic Healthcare West,
Series 1999, 6.500%, 7/01/20
California Statewide Community Development Authority,
Revenue Bonds, Daughters of Charity Health System,
Series 2005A:
545 5.250%, 7/01/24 7/15 at 100.00 BBB+ 577,825
690 5.250%, 7/01/35 7/15 at 100.00 BBB+ 722,775
2,000 California Statewide Community Development Authority, No Opt. Call AAA 2,192,300
Revenue Bonds, Sherman Oaks Health System,
Series 1998A, 5.000%, 8/01/22 - AMBAC Insured
6,000 Loma Linda, California, Hospital Revenue Refunding Bonds, 12/05 at 100.00 AAA 6,109,560
Loma Linda University Medical Center, Series 1993C,
5.375%, 12/01/22 - MBIA Insured
6,000 Madera County, California, Certificates of Participation, 9/05 at 102.00 AAA 6,139,020
Valley Children's Hospital Project, Series 1995,
5.750%, 3/15/28 - MBIA Insured
1,050 Stockton, California, Health Facility Revenue Bonds, 12/07 at 102.00 BBB+ 1,108,076
Dameron Hospital Association, Series 1997A,
5.450%, 12/01/10
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.7% (1.2% OF TOTAL INVESTMENTS)
1,000 Independent Cities Lease Finance Authority, California, 11/14 at 100.00 N/R 1,050,490
Revenue Bonds, Morgan Hill, Hacienda Valley Mobile Home
Park, Series 2004A, 5.950%, 11/15/39
4,750 Montclair Redevelopment Agency, California, Revenue Bonds, 12/10 at 102.00 N/R 5,081,408
Monterey Manor Mobile Home Estates Project,
Series 2000, 6.400%, 12/15/30
37
Nuveen California Select Quality Municipal Fund, Inc. (NVC) (continued)
Portfolio of INVESTMENTS August 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 1.3% (0.9% OF TOTAL INVESTMENTS)
$ 240 California Housing Finance Agency, Single Family Mortgage 11/05 at 102.00 AAA $ 242,777
Bonds, Senior Series 1995A-2, 6.350%, 8/01/15 (Alternative
Minimum Tax)
155 California Housing Finance Agency, Single Family Mortgage 10/05 at 102.00 AAA 155,375
Bonds, Mezzanine Series 1995B-2, 6.250%, 8/01/14
(Alternative Minimum Tax) - AMBAC Insured
930 California Housing Finance Agency, Single Family Mortgage 10/05 at 102.00 AAA 937,049
Bonds, Senior Series 1995B-2, 6.250%, 2/01/18 (Alternative
Minimum Tax)
3,560 Puerto Rico Housing Bank and Finance Agency, Affordable 10/05 at 102.00 AAA 3,642,877
Housing Mortgage Subsidy Program Single Family Mortgage
Revenue Bonds, Series 1995I, 6.250%, 4/01/29 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.5% (1.0% OF TOTAL INVESTMENTS)
5,000 California Pollution Control Financing Authority, Solid Waste No Opt. Call BBB+ 5,411,150
Disposal Revenue Bonds, Republic Services Inc., Series 2002C,
5.250%, 6/01/23 (Alternative Minimum Tax) (Mandatory
put 12/01/17)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 21.9% (14.5% OF TOTAL INVESTMENTS)
4,700 California, Various Purpose General Obligation Bonds, 5/10 at 101.00 AAA 5,176,956
Series 2000, 5.625%, 5/01/22 - FGIC Insured
California, General Obligation Bonds, Series 2003:
3,750 5.250%, 11/01/19 - RAAI Insured 11/13 at 100.00 AA 4,152,075
3,700 5.250%, 2/01/21 8/13 at 100.00 A 4,071,961
1,000 5.250%, 2/01/22 - CIFG Insured 8/13 at 100.00 AAA 1,085,840
5,000 5.250%, 2/01/22 8/13 at 100.00 A 5,500,100
California, General Obligation Bonds, Series 2004:
3,800 5.000%, 2/01/21 2/14 at 100.00 A 4,073,372
3,700 5.125%, 4/01/25 4/14 at 100.00 A 3,978,906
1,850 5.200%, 4/01/26 4/14 at 100.00 A 2,016,482
1,880 Compton Community College District, Los Angeles County, 7/14 at 100.00 AAA 2,089,545
California, General Obligation Bonds, Series 2004A,
5.250%, 7/01/20 - MBIA Insured
Fontana Unified School District, San Bernardino County,
California, General Obligation Bonds, Series 2004:
1,470 5.250%, 5/01/19 - MBIA Insured 5/14 at 100.00 AAA 1,634,669
1,040 5.250%, 5/01/20 - MBIA Insured 5/14 at 100.00 AAA 1,154,057
1,520 Jurupa Unified School District, Riverside County, California, 8/13 at 100.00 AAA 1,646,130
General Obligation Bonds, Series 2004, 5.000%, 8/01/23 -
FGIC Insured
10,060 Los Angeles, California, General Obligation Bonds, 9/11 at 100.00 AA 10,791,463
Series 2001A, 5.000%, 9/01/20
2,425 Los Angeles Community College District, Los Angeles County, 8/15 at 100.00 AAA 2,612,574
California, General Obligation Bonds, Series 2005A,
5.000%, 6/01/26 - FSA Insured
6,000 North Orange County Community College District, California, No Opt. Call AAA 2,228,280
General Obligation Bonds, Series 2003B, 0.000%, 8/01/27 -
FGIC Insured
2,200 Oakland Unified School District, Alameda County, California, 8/08 at 101.00 AAA 2,326,302
General Obligation Bonds, Series 2001, 5.125%, 8/01/21 -
FSA Insured
Oakland Unified School District, Alameda County, California,
General Obligation Bonds, Series 2005:
785 5.000%, 8/01/25 - MBIA Insured 8/15 at 100.00 AAA 846,379
825 5.000%, 8/01/26 - MBIA Insured 8/15 at 100.00 AAA 886,017
5,000 Puerto Rico, General Obligation and Public Improvement No Opt. Call AAA 5,953,650
Bonds, Series 2001A, 5.500%, 7/01/20 - MBIA Insured
7,375 Rancho Santiago Community College District, Orange County, 9/15 at 100.00 AAA 7,936,975
California, General Obligation Bonds, Series 2005B,
5.000%, 9/01/27 - FSA Insured
San Jose-Evergreen Community College District, Santa Clara
County, California, General Obligation Bonds, Series 2005A:
615 5.000%, 9/01/25 - MBIA Insured 9/15 at 100.00 AAA 665,018
895 5.000%, 9/01/27 - MBIA Insured 9/15 at 100.00 AAA 963,199
1,500 Southwestern Community College District, San Diego County, 8/15 at 102.00 AAA 1,641,360
California, General Obligation Bonds, Series 2005,
5.000%, 8/01/25 - MBIA Insured
38
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 1,000 Vista Unified School District, San Diego County, California, 8/12 at 100.00 AAA $ 1,076,770
General Obligation Bonds, Series 2002A, 5.000%, 8/01/23 -
FSA Insured
2,000 West Contra Costa Unified School District, Contra Costa 8/11 at 101.00 AAA 2,153,180
County, California, General Obligation Bonds, Series 2003C,
5.000%, 8/01/22 - FGIC Insured
3,760 West Contra Costa Unified School District, Contra Costa 8/11 at 101.00 AAA 4,047,978
County, California, General Obligation Bonds, Series 2003B,
5.000%, 8/01/22 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 28.8% (19.2% OF TOTAL INVESTMENTS)
2,870 Bell Community Redevelopment Agency, California, Tax 10/13 at 100.00 AA 3,123,392
Allocation Bonds, Bell Project Area, Series 2003,
5.500%, 10/01/23 - RAAI Insured
7,390 California, Economic Recovery Revenue Bonds, Series 2004A, 7/14 at 100.00 AA- 8,157,747
5.000%, 7/01/15
3,765 California State Public Works Board, Lease Revenue Bonds, 12/12 at 100.00 AAA 4,151,778
Department of General Services, Capital East End Project,
Series 2002A, 5.250%, 12/01/16 - AMBAC Insured
California State Public Works Board, Lease Revenue Bonds,
Department of Mental Health, Coalinga State Hospital, Series
2004A:
4,000 5.500%, 6/01/21 6/14 at 100.00 A- 4,465,640
2,000 5.500%, 6/01/23 6/14 at 100.00 A- 2,223,420
1,030 Folsom Cordova Unified School District, Sacramento County, 10/14 at 100.00 AAA 1,107,363
California, General Obligation Bonds, School Facilities
Improvement District 2, Series 2004B, 5.000%, 10/01/25 -
FSA Insured
555 Hesperia Community Redevelopment Agency, California, 9/15 at 100.00 AAA 601,087
Tax Allocation Bonds, Series 2005A, 5.000%, 9/01/20 -
XLCA Insured
1,405 Indian Wells Redevelopment Agency, California, Tax Allocation 9/13 at 100.00 AAA 1,508,844
Bonds, Consolidated Whitewater Project Area, Series 2003A,
5.000%, 9/01/20 - AMBAC Insured
3,000 La Quinta Redevelopment Agency, California, Tax Allocation 9/11 at 102.00 AAA 3,215,100
Bonds, Redevelopment Project Area 1, Series 2001,
5.000%, 9/01/21 - AMBAC Insured
3,510 Long Beach Bond Financing Authority, California, Lease 10/07 at 102.00 AAA 3,679,884
Revenue and Refunding Bonds, Civic Center Project,
Series 1997A, 5.000%, 10/01/27 - MBIA Insured
16,500 Los Angeles County Metropolitan Transportation Authority, 7/08 at 101.00 AAA 17,315,430
California, Proposition C Second Senior Lien Sales Tax
Revenue Refunding Bonds, Series 1998A, 5.000%, 7/01/23 -
AMBAC Insured
3,000 Los Angeles County Metropolitan Transportation Authority, 7/10 at 101.00 AAA 3,242,880
California, Proposition C Second Senior Lien Sales Tax
Revenue Bonds, Series 2000A, 5.250%, 7/01/25 - FGIC Insured
1,250 Los Angeles County Public Works Financing Authority, 12/15 at 100.00 AAA 1,344,925
California, Lease Revenue Bonds, Master Refunding Project,
Series 2005A, 5.000%, 12/01/25 - MBIA Insured
Monterey County, California, Certificates of Participation,
Master Plan Financing, Series 2001:
2,075 5.000%, 8/01/19 - MBIA Insured 8/11 at 100.00 Aaa 2,197,301
3,000 5.000%, 8/01/26 - MBIA Insured 8/11 at 100.00 Aaa 3,136,470
2,580 Oakland Redevelopment Agency, California, Subordinate 3/13 at 100.00 AAA 2,868,341
Lien Tax Allocation Bonds, Central District Redevelopment
Project, Series 2003, 5.500%, 9/01/18 - FGIC Insured
3,605 Oakland State Building Authority, California, Lease Revenue 4/08 at 101.00 AAA 3,771,227
Bonds, Elihu M. Harris State Office Building, Series 1998A,
5.000%, 4/01/23 - AMBAC Insured
2,280 Ontario Redevelopment Financing Authority, California, Lease 8/11 at 101.00 AAA 2,510,713
Revenue Bonds, Capital Projects, Series 2001,
5.250%, 8/01/18 - AMBAC Insured
1,000 Orange County, California, Special Tax Bonds, Community 8/12 at 101.00 N/R 1,037,440
Facilities District 03-1 of Ladera Ranch, Series 2004A,
5.500%, 8/15/24
8,750 Pittsburg Redevelopment Agency, California, Tax Allocation No Opt. Call AAA 3,935,313
Bonds, Los Medanos Community Development Project,
Series 1999, 0.000%, 8/01/23 - AMBAC Insured
2,000 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call AAA 2,561,520
Appropriation Bonds, Series 2002E, 6.000%, 8/01/26 -
AGC Insured
635 Rialto Redevelopment Agency, California, Tax Allocation 9/15 at 100.00 AAA 670,027
Bonds, Merged Project Area, Series 2005A, 5.000%, 9/01/35 -
XLCA Insured
125 Riverside Public Financing Authority, California, Revenue 2/06 at 100.00 N/R 126,865
Bonds, Multiple Project Loans, Series 1991A, 8.000%, 2/01/18
39
Nuveen California Select Quality Municipal Fund, Inc. (NVC) (continued)
Portfolio of INVESTMENTS August 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,680 Riverside Redevelopment Agency, California, Tax Allocation 8/13 at 100.00 AAA $ 1,830,158
Refunding Bonds, Merged Project Areas, Series 2003,
5.250%, 8/01/23 - MBIA Insured
425 Riverside County Public Financing Authority, California, 10/15 at 100.00 AAA 449,654
Tax Allocation Bonds, Multiple Projects, Series 2005A,
5.000%, 10/01/35 (WI, settling 9/08/05) - XLCA Insured
10,000 San Jose Redevelopment Agency, California, Tax Allocation 8/08 at 102.00 A 10,403,100
Bonds, Merged Area Redevelopment Project, Series 1998,
5.250%, 8/01/29
2,200 San Jose Financing Authority, California, Lease Revenue 9/11 at 100.00 AAA 2,355,078
Refunding Bonds, Convention Center Project, Series 2001F,
5.000%, 9/01/20 - MBIA Insured
4,625 Santa Clara Redevelopment Agency, California, Tax Allocation No Opt. Call AAA 4,999,116
Bonds, Bayshore North Project, Series 2003, 5.000%, 6/01/17 -
MBIA Insured
Solano County, California, Certificates of Participation,
Series 2002:
2,415 5.250%, 11/01/22 - MBIA Insured 11/12 at 100.00 AAA 2,640,682
1,625 5.250%, 11/01/23 - MBIA Insured 11/12 at 100.00 AAA 1,776,856
5,000 West Hollywood, California, Refunding Certificates of 2/08 at 102.00 AAA 5,239,950
Participation, Series 1998, 5.000%, 2/01/25 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 18.3% (12.1% OF TOTAL INVESTMENTS)
10,500 Foothill/Eastern Transportation Corridor Agency, California, 1/14 at 101.00 BBB- 9,023,385
Toll Road Revenue Refunding Bonds, Series 1999,
0.000%, 1/15/29
8,300 Foothill/Eastern Transportation Corridor Agency, California, 1/10 at 100.00 AAA 8,714,336
Toll Road Revenue Bonds, Series 1995A, 5.000%, 1/01/35 -
MBIA Insured
7,500 Los Angeles Harbors Department, California, Revenue Bonds, 8/06 at 101.00 AAA 7,774,575
Series 1996, 6.200%, 8/01/25 (Alternative Minimum Tax) -
MBIA Insured
2,000 Orange County Transportation Authority, California, Toll Road 8/13 at 100.00 AAA 2,176,880
Revenue Bonds, 91 Express Lanes Project, Series 2003A,
5.000%, 8/15/20 - AMBAC Insured
8,000 Port of Oakland, California, Revenue Bonds, Series 2000K, 5/10 at 100.00 AAA 8,641,360
5.750%, 11/01/29 (Alternative Minimum Tax) - FGIC Insured
20,000 San Francisco Airports Commission, California, Revenue Bonds, 5/10 at 101.00 AAA 21,770,800
San Francisco International Airport, Second Series 2000,
Issue 25, 5.750%, 5/01/30 (Alternative Minimum Tax) -
FSA Insured
5,000 San Francisco Airports Commission, California, Revenue 5/11 at 100.00 AAA 5,425,900
Refunding Bonds, San Francisco International Airport, Second
Series 2001, Issue 27B, 5.250%, 5/01/18 - FGIC Insured
3,665 San Francisco Airports Commission, California, Revenue 5/12 at 100.00 AAA 3,925,032
Refunding Bonds, San Francisco International Airport,
Second Series 2002, Issue 28A, 5.250%, 5/01/18
(Alternative Minimum Tax) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 26.0% (17.3% OF TOTAL INVESTMENTS)
13,500 California Health Facilities Financing Authority, Revenue 12/09 at 101.00 A3*** 15,259,725
Bonds, Cedars-Sinai Medical Center, Series 1999A,
6.125%, 12/01/30 (Pre-refunded to 12/01/09)
3,000 California Pollution Control Financing Authority, Solid 1/06 at 100.00 Aaa 3,514,920
Waste Disposal Revenue Bonds, North County Recycling
Center, Series 1991A, 6.750%, 7/01/17
10,000 California, Various Purpose General Obligation Bonds, 3/10 at 101.00 AAA 11,185,500
Series 2000, 5.750%, 3/01/27 (Pre-refunded to 3/01/10) -
MBIA Insured
1,935 Contra Costa County, California, GNMA Mortgage-Backed No Opt. Call AAA 2,127,378
Securities Program Home Mortgage Revenue Bonds,
Series 1989, 7.700%, 11/01/09 (Alternative Minimum Tax)
5,515 Fresno Unified School District, Fresno County, California, 8/09 at 102.00 AAA 5,802,001
General Obligation Bonds, Series 2001E, 5.000%, 8/01/25 -
FGIC Insured
Golden State Tobacco Securitization Corporation, California,
Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2003B:
2,000 5.625%, 6/01/33 (Pre-refunded to 6/01/13) 6/13 at 100.00 Aaa 2,288,820
2,500 5.625%, 6/01/38 (Pre-refunded to 6/01/13) 6/13 at 100.00 Aaa 2,861,025
12,020 Los Angeles Unified School District, California, General 7/08 at 101.00 AAA 12,813,921
Obligation Bonds, Series 1998B, 5.000%, 7/01/23
(Pre-refunded to 7/01/08) - FGIC Insured
40
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** (continued)
$ 6,030 Los Angeles Unified School District, California, General 7/10 at 100.00 AAA $ 6,651,090
Obligation Bonds, Series 2000D, 5.375%, 7/01/25
(Pre-refunded to 7/01/10) - FGIC Insured
2,270 Pajaro Valley Unified School District, Santa Cruz County, 8/13 at 100.00 AAA 2,523,831
California, General Obligation Bonds, Series 2003A,
5.000%, 8/01/20 (Pre-refunded to 8/01/13) - FSA Insured
10,000 Puerto Rico Highway and Transportation Authority, Highway 7/10 at 101.00 A*** 11,327,500
Revenue Bonds, Series 2000B, 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 4,413,800
Obligation Bonds, Series 2000A, 5.500%, 10/01/32
Sweetwater Authority, California, Water Revenue Bonds,
Series 2002:
2,800 5.500%, 4/01/19 (Pre-refunded to 4/01/10) - FSA Insured 4/10 at 101.00 AAA 3,115,028
9,055 5.000%, 4/01/22 (Pre-refunded to 4/01/10) - FSA Insured 4/10 at 101.00 AAA 9,881,540
2,000 Vista, California, Mobile Home Park Revenue Bonds, Vista 3/24 at 100.00 N/R*** 2,203,660
Manor Mobile Home Park Project, Series 1999A,
5.750%, 3/15/29 (Pre-refunded to 3/15/24)
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 18.0% (11.9% OF TOTAL INVESTMENTS)
2,000 Anaheim Public Finance Authority, California, Revenue 10/12 at 100.00 AAA 2,207,940
Refunding Bonds, Electric Generating System, Series 2002B,
5.250%, 10/01/18 - FSA Insured
1,810 Anaheim Public Finance Authority, California, Second Lien 10/14 at 100.00 AAA 1,998,982
Electric Distribution Revenue Bonds, Series 2004,
5.250%, 10/01/21 - MBIA Insured
10,350 California Pollution Control Financing Authority, Revenue No Opt. Call A+ 12,343,928
Bonds, San Diego Gas and Electric Company, Series 1991A,
6.800%, 6/01/15 (Alternative Minimum Tax)
California Department of Water Resources, Power Supply
Revenue Bonds, Series 2002A:
2,500 5.375%, 5/01/17 - XLCA Insured 5/12 at 101.00 AAA 2,768,750
9,750 5.125%, 5/01/18 5/12 at 101.00 A2 10,505,138
4,000 Imperial Irrigation District, California, Certificates of 11/13 at 100.00 AAA 4,367,040
Participation, Electric System Revenue Bonds, Series 2003,
5.250%, 11/01/23 - FSA Insured
5,000 Los Angeles Department of Water and Power, California, 7/11 at 100.00 AAA 5,443,750
Power System Revenue Refunding Bonds, Series 2001A-2,
5.375%, 7/01/20 - MBIA Insured
1,200 Los Angeles Department of Water and Power, California, 7/13 at 100.00 AAA 1,303,152
Power System Revenue Bonds, Series 2003A-2,
5.000%, 7/01/21 - MBIA Insured
5,225 Los Angeles, California, Sanitation Equipment Charge Revenue 2/11 at 100.00 AAA 5,679,157
Bonds, Series 2001A, 5.250%, 2/01/18 - FSA Insured
1,025 Los Angeles, California, Sanitation Equipment Charge Revenue 2/14 at 100.00 AAA 1,105,585
Bonds, Series 2004A, 5.000%, 2/01/22 - AMBAC Insured
7,000 Merced Irrigation District, California, Revenue Refunding 9/05 at 102.00 Baa3 7,151,760
Bonds, Electric System Project, Series 2001, 6.850%, 9/01/36
2,630 Pasadena, California, Electric Works Revenue Bonds, 6/12 at 100.00 AAA 2,873,012
Series 2002, 5.250%, 6/01/21 - MBIA Insured
4,360 Sacramento Municipal Utility District, California, Electric 8/12 at 100.00 AAA 4,806,159
Revenue Refunding Bonds, Series 2002Q, 5.250%, 8/15/19 -
FSA Insured
3,460 Southern California Public Power Authority, Revenue Bonds, 7/13 at 100.00 AAA 3,723,064
Magnolia Power Project, Series 2003-1A, 5.000%, 7/01/20 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 11.7% (7.8% OF TOTAL INVESTMENTS)
1,185 Burbank, California, Wastewater System Revenue Bonds, 6/14 at 100.00 AAA 1,270,332
Series 2004A, 5.000%, 6/01/24 - AMBAC Insured
2,750 Los Angeles Department of Water and Power, California, 7/14 at 100.00 AAA 3,056,515
Waterworks Revenue Bonds, Series 2004C, 5.250%, 7/01/20 -
MBIA Insured
5,000 Los Angeles, California, Wastewater System Revenue Bonds, 6/08 at 101.00 AAA 5,230,800
Series 1998A, 5.000%, 6/01/28 - FGIC Insured
3,750 Metropolitan Water District of Southern California, Water 10/14 at 100.00 AAA 4,005,150
Revenue Bonds, Series 2004B-3, 5.000%, 10/01/29 -
MBIA Insured
2,000 Pico Rivera Water Authority, California, Revenue Bonds, 12/11 at 102.00 N/R 2,168,160
Series 2001A, 6.250%, 12/01/32
41
Nuveen California Select Quality Municipal Fund, Inc. (NVC) (continued)
Portfolio of INVESTMENTS August 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 2,525 Sacramento County Sanitation District Financing Authority, No Opt. Call AAA $ 2,984,348
California, Revenue Refunding Bonds, Series 2001,
5.500%, 12/01/20 - AMBAC Insured
17,670 San Francisco City and County Public Utilities Commission, 11/11 at 100.00 AAA 18,985,885
California, Water Revenue Bonds, Series 2001A,
5.000%, 11/01/24 - FSA Insured
San Francisco City and County Public Utilities Commission,
California, Clean Water Revenue Refunding Bonds, Series 2003A:
2,120 5.250%, 10/01/19 - MBIA Insured 4/13 at 100.00 AAA 2,353,242
2,960 5.250%, 10/01/20 - MBIA Insured 4/13 at 100.00 AAA 3,283,584
------------------------------------------------------------------------------------------------------------------------------------
$ 523,320 Total Long-Term Investments (cost $511,845,385) - 150.4% 555,235,780
===============--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.6% 5,851,578
-------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.0)% (192,000,000)
-------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 369,087,358
===================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
* Optional Call Provisions (not covered by the report of
independent registered public accounting firm): 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 (not covered by the report of independent
registered public accounting firm): 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.
42
Nuveen California Quality Income Municipal Fund, Inc. (NUC)
Portfolio of
INVESTMENTS August 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 7.7% (5.1% OF TOTAL INVESTMENTS)
$ 4,620 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 Baa3 $ 4,792,095
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 Baa3 7,597,856
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 Baa3 5,257,450
Settlement Asset-Backed Bonds, Alameda County Tobacco
Asset Securitization Corporation, Series 2002, 5.750%, 6/01/29
8,980 California Statewide Financing Authority, Tobacco Settlement 5/12 at 100.00 Baa3 9,374,312
Asset-Backed Bonds, Pooled Tobacco Securitization Program,
Series 2002A, 5.625%, 5/01/29
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 16.0% (10.6% OF TOTAL INVESTMENTS)
8,975 California Educational Facilities Authority, Revenue Bonds, 11/10 at 100.00 Aaa 9,948,249
University of the Pacific, Series 2000, 5.750%, 11/01/30 -
MBIA Insured
4,000 California State Public Works Board, Lease Revenue Refunding 3/06 at 102.00 AAA 4,134,720
Bonds, Community Colleges Projects, Series 1996B,
5.625%, 3/01/19 - AMBAC Insured
6,400 California State University, Systemwide Revenue Bonds, 11/12 at 100.00 AAA 6,906,688
Series 2002A, 5.000%, 11/01/20 - AMBAC Insured
1,000 California Statewide Community Development Authority, 4/06 at 101.00 AAA 1,026,470
Auxiliary Organization Revenue Certificates of Participation,
University Corporation - California State University -
Northridge, Series 1996, 6.000%, 4/01/26 - AMBAC Insured
1,615 University of California, Certificates of Participation, 1/10 at 101.00 Aa2 1,711,738
San Diego and Sacramento Campus Projects, Series 2002A,
5.250%, 1/01/21
7,500 University of California, Revenue Bonds, Multiple Purpose 9/08 at 101.00 AA 7,816,125
Projects, Series 2000K, 5.300%, 9/01/30
University of California, Revenue Bonds, Research Facilities,
Series 2001E:
2,305 5.000%, 9/01/23 - AMBAC Insured 9/09 at 101.00 AAA 2,453,073
5,150 5.000%, 9/01/24 - AMBAC Insured 9/09 at 101.00 AAA 5,480,836
University of California, Revenue Bonds, Multi-Purpose Projects,
Series 2002O:
5,265 5.000%, 9/01/18 - FGIC Insured 9/10 at 101.00 AAA 5,697,625
10,255 5.000%, 9/01/19 - FGIC Insured 9/10 at 101.00 AAA 11,097,653
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 5.6% (3.8% OF TOTAL INVESTMENTS)
1,750 ABAG Finance Authority for Non-Profit Corporations, 4/12 at 100.00 A 1,893,710
California, Cal-Mortgage Insured Revenue Bonds,
Sansum-Santa Barbara Medical Foundation Clinic,
Series 2002A, 5.500%, 4/01/21
1,285 California Health Facilities Financing Authority, Revenue 11/15 at 100.00 A3 1,330,540
Bonds, Cedars-Sinai Medical Center, Series 2005,
5.000%, 11/15/34
3,790 California Health Facilities Financing Authority, Insured 11/05 at 100.00 A 3,797,277
Health Facility Revenue Refunding Bonds, Valley Memorial
Hospital, Series 1993A, 6.000%, 5/01/17
1,225 California State Public Works Board, Revenue Bonds, 11/14 at 100.00 AAA 1,309,917
University of California - Davis Medical Center,
Series 2004II-A, 5.000%, 11/01/23 - MBIA Insured
1,060 California Statewide Community Development Authority, No Opt. Call A3 1,169,996
Certificates of Participation, Cedars-Sinai Medical Center,
Series 1992, 6.500%, 8/01/12
California Statewide Community Development Authority,
Revenue Bonds, Daughters of Charity Health System,
Series 2005A:
520 5.250%, 7/01/24 7/15 at 100.00 BBB+ 551,320
1,090 5.250%, 7/01/35 7/15 at 100.00 BBB+ 1,141,775
5,355 California Statewide Community Development Authority, No Opt. Call A+ 5,561,542
Revenue Bonds, Kaiser Permanente System, Series 2002E,
4.700%, 11/01/36 (Mandatory put 5/31/09)
3,110 Loma Linda, California, Hospital Revenue Bonds, Loma Linda 12/05 at 100.00 BBB- 3,121,725
University Medical Center, Series 1993A, 6.500%, 12/01/18
43
Nuveen California Quality Income Municipal Fund, Inc. (NUC) (continued)
Portfolio of INVESTMENTS August 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 5.9% (3.9% OF TOTAL INVESTMENTS)
$ 3,836 California Housing Finance Agency, Multi-Unit Rental Housing 2/06 at 100.00 Aa3 $ 3,845,360
Revenue Bonds, Series 1992B-II, 6.700%, 8/01/15
1,000 California Statewide Community Development Authority, 7/08 at 101.00 BBB 1,043,540
Revenue Refunding Bonds, Irvine Apartment Communities
Development, Series 1998A, 5.100%, 5/15/25 (Mandatory
put 5/17/10)
3,000 Daly City Housing Development Finance Agency, California, 12/13 at 102.00 A- 3,157,500
Mobile Home Park Revenue Bonds, Franciscan Mobile
Home Park Project, Series 2002A, 5.850%, 12/15/32
1,000 Independent Cities Lease Finance Authority, California, 11/14 at 100.00 N/R 1,050,490
Revenue Bonds, Morgan Hill, Hacienda Valley Mobile
Home Park, Series 2004A, 5.950%, 11/15/39
2,285 Irvine, California, Mobile Home Park Revenue Bonds, 3/08 at 102.00 N/R 2,386,111
Meadows Mobile Home Park, Series 1998A, 5.700%, 3/01/18
2,420 Oceanside, California, Mobile Home Park Revenue Bonds, 3/08 at 102.00 N/R 2,476,144
Laguna Vista Mobile Estates Acquisition Project, Series 1998,
5.800%, 3/01/28
3,040 Riverside County, California, Mobile Home Park Revenue 3/09 at 102.00 N/R 3,115,635
Bonds, Bravo Mobile Home Park Project, Series 1999A,
5.900%, 3/20/29
1,740 Stanton, California, Multifamily Housing Revenue Bonds, 8/07 at 102.00 AAA 1,826,269
Continental Gardens Apartments, Series 1997,
5.625%, 8/01/29 (Alternative Minimum Tax) (Mandatory
put 8/01/09)
Yolo County Housing Authority, California, Revenue Refunding
Bonds, Russell Park Apartments, Series 1992A:
720 6.900%, 11/01/08 11/05 at 100.00 Aa2 721,692
1,030 7.000%, 11/01/14 11/05 at 100.00 Aa2 1,031,854
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.0% (0.0% OF TOTAL INVESTMENTS)
60 Riverside County, California, GNMA Mortgage-Backed No Opt. Call AAA 60,482
Securities Program Single Family Mortgage Revenue Bonds,
Series 1989B, 7.600%, 11/01/19 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 25.5% (17.0% OF TOTAL INVESTMENTS)
1,900 Azusa Unified School District, Los Angeles County, California, 7/12 at 100.00 AAA 2,092,926
General Obligation Bonds, Series 2002, 5.375%, 7/01/20 -
FSA Insured
11,865 California, General Obligation Veterans Welfare Bonds, 12/05 at 100.00 AA- 11,929,427
Series 1997BH, 5.600%, 12/01/32 (Alternative Minimum Tax)
1,500 California, Various Purpose General Obligation Bonds, 6/10 at 100.00 A 1,625,025
Series 2000, 5.500%, 6/01/25
6,085 California, General Obligation Veterans Welfare Bonds, 12/06 at 102.00 AA- 6,301,991
Series 1997BJ, 5.700%, 12/01/32 (Alternative Minimum Tax)
2,000 California, General Obligation Refunding Bonds, 4/12 at 100.00 A 2,184,360
Series 2002, 5.250%, 4/01/32
7,500 California, Various Purpose General Obligation Bonds, 6/11 at 100.00 A 7,931,100
Series 2001, 5.125%, 6/01/22
California, General Obligation Bonds, Series 2003:
3,750 5.250%, 11/01/19 - RAAI Insured 11/13 at 100.00 AA 4,152,075
500 5.250%, 2/01/33 2/13 at 100.00 A 548,525
6,300 California, General Obligation Bonds, Series 2004, 4/14 at 100.00 A 6,866,937
5.200%, 4/01/26
1,615 Compton Unified School District, Los Angeles County, 9/13 at 100.00 AAA 1,816,310
California, General Obligation Bonds, Series 2003A,
5.375%, 9/01/19 - MBIA Insured
1,370 Fremont-Newark Community College District, Alameda County, 8/11 at 101.00 AAA 1,508,836
California, General Obligation Bonds, Series 2002A,
5.375%, 8/01/20 - MBIA Insured
5,255 Livermore Valley Joint Unified School District, Alameda 8/11 at 100.00 AAA 5,556,479
County, California, General Obligation Bonds, Election
of 1999, Series 2001, 5.125%, 8/01/26 - FSA Insured
2,265 Los Angeles Community College District, Los Angeles County, 8/15 at 100.00 AAA 2,440,198
California, General Obligation Bonds, Series 2005A,
5.000%, 6/01/26 - FSA Insured
1,170 Los Angeles Unified School District, California, General 7/13 at 100.00 AAA 1,283,396
Obligation Bonds, Series 2003F, 5.000%, 7/01/17 -
FSA Insured
2,375 Moreno Valley Unified School District, Riverside County, 8/14 at 100.00 AAA 2,621,026
California, General Obligation Bonds, Series 2004A,
5.250%, 8/01/24 - FSA Insured
44
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
Oakland Unified School District, Alameda County, California,
General Obligation Bonds, Series 2005:
$ 745 5.000%, 8/01/25 - MBIA Insured 8/15 at 100.00 AAA $ 803,252
785 5.000%, 8/01/26 - MBIA Insured 8/15 at 100.00 AAA 843,059
6,760 San Diego Unified School District, San Diego County, 7/13 at 101.00 AAA 7,578,568
California, General Obligation Bonds, Series 2003E,
5.250%, 7/01/21 - FSA Insured
5,055 San Joaquin Delta Community College District, California, 8/15 at 100.00 AAA 5,424,622
General Obligation Bonds, Series 2005A, 5.000%,
8/01/29 - FSA Insured
1,500 San Jose Unified School District, Santa Clara County, 8/15 at 100.00 AAA 1,621,110
California, General Obligation Bonds, Series 2005B,
5.000%, 8/01/25 - FGIC Insured
San Jose-Evergreen Community College District, Santa Clara
County, California, General Obligation Bonds, Series 2005A:
585 5.000%, 9/01/25 - MBIA Insured 9/15 at 100.00 AAA 632,578
860 5.000%, 9/01/27 - MBIA Insured 9/15 at 100.00 AAA 925,532
6,865 San Ramon Valley Unified School District, Contra Costa 8/13 at 100.00 AAA 7,434,658
County, California, General Obligation Bonds, Series 2003,
5.000%, 8/01/23 - FSA Insured
1,390 South Pasadena Unified School District, Los Angeles County, 8/13 at 100.00 AAA 1,508,025
California, General Obligation Bonds, Series 2003A,
5.000%, 8/01/22 - FGIC Insured
3,925 West Contra Costa Unified School District, Contra Costa 8/11 at 101.00 AAA 4,225,616
County, California, General Obligation Bonds, Series 2003B,
5.000%, 8/01/23 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 32.4% (21.7% OF TOTAL INVESTMENTS)
1,200 Burbank Public Financing Authority, California, Revenue 12/12 at 100.00 AAA 1,287,672
Bonds, West Olive Redevelopment Project, Series 2002,
5.125%, 12/01/22 - AMBAC Insured
7,160 California, Economic Recovery Revenue Bonds, Series 2004A, 7/14 at 100.00 AA- 7,903,852
5.000%, 7/01/15
3,070 California State Public Works Board, Lease Revenue Bonds, 12/12 at 100.00 AAA 3,385,381
Department of General Services, Capital East End Project,
Series 2002A, 5.250%, 12/01/16 - AMBAC Insured
5,115 California State Public Works Board, Lease Revenue Bonds, 6/14 at 100.00 A- 5,726,498
Department of Mental Health, Coalinga State Hospital,
Series 2004A, 5.500%, 6/01/20
2,000 California State Public Works Board, Lease Revenue Bonds, No Opt. Call AAA 2,245,420
Department of Corrections, Susanville State Prison,
Series 1993D, 5.250%, 6/01/15 - FSA Insured
2,030 California State Public Works Board, Lease Revenue Bonds, 3/12 at 100.00 AAA 2,192,664
Department of General Services, Series 2002C,
5.250%, 3/01/21 - AMBAC Insured
Commerce Community Development Commission, California, Tax
Allocation Refunding Bonds, Merged Area Development Projects 2
and 3, Series 1998A:
1,000 5.650%, 8/01/18 8/08 at 102.00 N/R 1,065,290
2,765 5.700%, 8/01/28 8/08 at 102.00 N/R 2,952,495
3,065 Corona-Norco Unified School District, Riverside County, 9/13 at 100.00 AAA 3,462,132
California, Special Tax Bonds, Community Facilities
District 98-1, Series 2003, 5.500%, 9/01/33 - MBIA Insured
2,725 Fresno, California, Certificates of Participation, Street 12/05 at 100.00 A+ 2,747,645
Improvement Project, Series 1991, 6.625%, 12/01/11
530 Hesperia Community Redevelopment Agency, California, 9/15 at 100.00 AAA 574,011
Tax Allocation Bonds, Series 2005A, 5.000%, 9/01/20 -
XLCA Insured
1,910 Industry Urban Development Agency, California, Tax Allocation 5/07 at 101.50 AAA 2,016,654
Refunding Bonds, Civic, Recreational and Industrial
Redevelopment Project 1, Series 2002, 5.500%, 5/01/19 -
MBIA Insured
1,350 Los Angeles Community Redevelopment Agency, California, 3/13 at 100.00 BBB- 1,386,977
Subordinate Lien Tax Allocation Bonds, Bunker Hill
Redevelopment Project, Series 2004L, 5.100%, 3/01/19
8,000 Los Angeles County Metropolitan Transportation Authority, 7/10 at 101.00 AAA 8,647,680
California, Proposition C Second Senior Lien Sales Tax
Revenue Bonds, Series 2000A, 5.250%, 7/01/25 -
FGIC Insured
4,850 Los Angeles County Metropolitan Transportation Authority, 7/13 at 100.00 AAA 5,326,997
California, Proposition A First Tier Senior Sales Tax Revenue
Bonds, Series 2003A, 5.000%, 7/01/16 - FSA Insured
4,000 Los Angeles County Public Works Financing Authority, 12/15 at 100.00 AAA 4,289,920
California, Lease Revenue Bonds, Master Refunding Project,
Series 2005A, 5.000%, 12/01/26 - MBIA Insured
45
Nuveen California Quality Income Municipal Fund, Inc. (NUC) (continued)
Portfolio of INVESTMENTS August 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 3,005 Monterey County, California, Certificates of Participation, 8/11 at 100.00 Aaa $ 3,175,624
Master Plan Financing, Series 2001, 5.000%, 8/01/20 -
MBIA Insured
14,160 Oakland State Building Authority, California, Lease Revenue 4/08 at 101.00 AAA 14,812,918
Bonds, Elihu M. Harris State Office Building, Series 1998A,
5.000%, 4/01/23 - AMBAC Insured
15,300 Ontario Redevelopment Financing Authority, San Bernardino No Opt. Call AAA 21,468,807
County, California, Revenue Refunding Bonds, Redevelopment
Project 1, Series 1995, 7.400%, 8/01/25 - MBIA Insured
Redding Redevelopment Agency, California, Tax Allocation
Bonds, Canby-Hilltop-Cypress Area Project, Series 2003A:
1,500 5.000%, 9/01/17 - MBIA Insured 9/13 at 100.00 AAA 1,648,125
1,500 5.000%, 9/01/20 - MBIA Insured 9/13 at 100.00 AAA 1,632,990
600 Rialto Redevelopment Agency, California, Tax Allocation 9/15 at 100.00 AAA 633,096
Bonds, Merged Project Area, Series 2005A, 5.000%, 9/01/35 -
XLCA Insured
4,320 Richmond Joint Powers Financing Authority, California, 9/13 at 100.00 AAA 4,697,395
Tax Allocation Bonds, Series 2003A, 5.250%, 9/01/22 -
MBIA Insured
400 Riverside County Public Financing Authority, California, 10/15 at 100.00 AAA 423,204
Tax Allocation Bonds, Multiple Projects, Series 2005A,
5.000%, 10/01/35 (WI, settling 9/08/05) - XLCA Insured
3,000 San Francisco Bay Area Rapid Transit District, California, 7/15 at 100.00 AAA 3,250,650
Sales Tax Revenue Bonds, Series 2005A, 5.000%, 7/01/24
(WI, settling 9/07/05) - MBIA Insured
2,500 San Jose Financing Authority, California, Lease Revenue 9/11 at 100.00 AAA 2,676,225
Refunding Bonds, Convention Center Project, Series 2001F,
5.000%, 9/01/20 - MBIA Insured
2,000 San Jose Unified School District, Santa Clara County, 6/07 at 101.00 AAA 2,109,080
California, Certificates of Participation, Series 1999,
5.750%, 6/01/24 - MBIA Insured
2,770 Santa Ana Community Redevelopment Agency, Orange 9/13 at 100.00 AAA 2,982,598
County, California, Tax Allocation Refunding Bonds,
South Main Street Redevelopment, Series 2003B,
5.000%, 9/01/19 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 12.8% (8.6% OF TOTAL INVESTMENTS)
11,000 Foothill/Eastern Transportation Corridor Agency, California, 1/14 at 101.00 BBB- 9,453,070
Toll Road Revenue Refunding Bonds, Series 1999,
0.000%, 1/15/29
2,000 Orange County Transportation Authority, California, 8/13 at 100.00 AAA 2,176,880
Toll Road Revenue Bonds, 91 Express Lanes Project,
Series 2003A, 5.000%, 8/15/20 - AMBAC Insured
2,685 Sacramento County, California, Airport System Revenue 7/12 at 100.00 AAA 2,929,040
Bonds, Series 2002A, 5.250%, 7/01/21 - FSA Insured
20,000 San Francisco Airports Commission, California, Revenue 5/10 at 101.00 AAA 21,770,800
Bonds, San Francisco International Airport, Second
Series 2000, Issue 25, 5.750%, 5/01/30 (Alternative
Minimum Tax) - FSA Insured
San Francisco Airports Commission, California, Revenue
Refunding Bonds, San Francisco International Airport, Second
Series 2002, Issue 28A:
1,480 5.250%, 5/01/17 (Alternative Minimum Tax) - MBIA Insured 5/12 at 100.00 AAA 1,588,588
3,865 5.250%, 5/01/19 (Alternative Minimum Tax) - MBIA Insured 5/12 at 100.00 AAA 4,132,226
3,000 San Francisco Airports Commission, California, Revenue 5/12 at 100.00 AAA 3,266,790
Refunding Bonds, San Francisco International Airport,
Second Series 2002, Issue 28B, 5.250%, 5/01/22 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 26.1% (17.4% OF TOTAL INVESTMENTS)
California Health Facilities Financing Authority, Revenue Bonds,
Cedars-Sinai Medical Center, Series 1999A:
10,400 6.125%, 12/01/30 (Pre-refunded to 12/01/09) 12/09 at 101.00 A3*** 11,755,640
7,700 6.250%, 12/01/34 (Pre-refunded to 12/01/09) 12/09 at 101.00 A3*** 8,741,810
8,000 California Pollution Control Financing Authority, Solid Waste 1/06 at 100.00 Aaa 9,373,120
Disposal Revenue Bonds, North County Recycling Center,
Series 1991A, 6.750%, 7/01/17
4,440 Coast Community College District, Orange County, California, 8/13 at 100.00 AAA 4,910,507
General Obligation Refunding Bonds, Series 2003A,
5.000%, 8/01/22 (Pre-refunded to 8/01/13) - MBIA Insured
12,805 Contra Costa County, California, GNMA Mortgage-Backed No Opt. Call AAA 18,691,843
Securities Program Home Mortgage Revenue Bonds,
Series 1988, 8.250%, 6/01/21 (Alternative Minimum Tax)
46
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** (continued)
Golden State Tobacco Securitization Corporation, California,
Enhanced Tobacco Settlement Asset-Backed Bonds,
Series 2003B:
$ 5,000 5.625%, 6/01/33 (Pre-refunded to 6/01/13) 6/13 at 100.00 Aaa $ 5,722,050
2,500 5.625%, 6/01/38 (Pre-refunded to 6/01/13) 6/13 at 100.00 Aaa 2,861,025
2,000 Los Angeles Unified School District, California, General 7/10 at 100.00 AAA 2,206,000
Obligation Bonds, Series 2000D, 5.375%, 7/01/25
(Pre-refunded to 7/01/10) - FGIC Insured
5,200 Orange County, California, Recovery Certificates of 7/06 at 102.00 AAA 5,439,044
Participation, Series 1996A, 6.000%, 7/01/26 (Pre-refunded
to 7/01/06) - MBIA Insured
5,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 5,517,250
Obligation Bonds, Series 2000A, 5.500%, 10/01/32
13,525 San Bernardino County, California, GNMA Mortgage-Backed No Opt. Call AAA 16,723,392
Securities Program Single Family Home Mortgage Revenue
Bonds, Series 1989A, 7.750%, 11/01/14 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 11.7% (7.8% OF TOTAL INVESTMENTS)
California Department of Water Resources, Power Supply
Revenue Bonds, Series 2002A:
2,500 5.375%, 5/01/17 - XLCA Insured 5/12 at 101.00 AAA 2,768,750
9,000 5.125%, 5/01/18 5/12 at 101.00 A2 9,697,050
1,200 Los Angeles Department of Water and Power, California, 7/13 at 100.00 AAA 1,303,152
Power System Revenue Bonds, Series 2003A-2,
5.000%, 7/01/21 - MBIA Insured
1,500 Merced Irrigation District, California, Revenue Refunding 9/05 at 102.00 Baa3 1,532,205
Bonds, Electric System Project, Series 2001, 6.500%, 9/01/22
5,000 Merced Irrigation District, California, Revenue Certificates 9/13 at 102.00 Baa3 5,308,000
of Participation, Electric System Project, Series 2003,
5.700%, 9/01/36
1,705 Redlands, California, Certificates of Participation Refunding, 9/05 at 100.00 AAA 1,710,644
Capital Improvement Projects, Series 1992, 6.800%, 3/01/07 -
AMBAC Insured
2,410 Sacramento Municipal Utility District, California, Electric 8/12 at 100.00 AAA 2,638,757
Revenue Refunding Bonds, Series 2002Q, 5.250%, 8/15/21 -
FSA Insured
Sacramento Municipal Utility District, California, Electric
Revenue Bonds, Series 2004T:
2,500 5.250%, 5/15/22 - FGIC Insured 5/14 at 100.00 AAA 2,761,525
2,500 5.250%, 5/15/23 - FGIC Insured No Opt. Call AAA 2,757,625
5,500 Southern California Public Power Authority, Revenue Bonds, No Opt. Call A 6,392,925
Multiple Projects, Series 1989, 6.750%, 7/01/11
4,000 Southern California Public Power Authority, Revenue Bonds, 7/13 at 100.00 AAA 4,304,120
Magnolia Power Project, Series 2003-1A, 5.000%, 7/01/20 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 6.2% (4.1% OF TOTAL INVESTMENTS)
7,040 California Statewide Community Development Authority, 10/13 at 101.00 AAA 7,737,101
Water and Wastewater Revenue Bonds, Pooled Financing
Program, Series 2004A, 5.250%, 10/01/24 - FSA Insured
Goleta Water District, California, Certificates of Participation
Revenue Bonds, Series 2003:
1,000 5.250%, 12/01/20 - MBIA Insured 12/13 at 100.00 AAA 1,117,570
1,440 5.250%, 12/01/21 - MBIA Insured 12/13 at 100.00 AAA 1,609,301
1,205 5.250%, 12/01/22 - MBIA Insured 12/13 at 100.00 AAA 1,346,672
500 Norco, California, Certificates of Participation Refunding, 10/08 at 102.00 AAA 531,355
Water and Sewerage System Improvement Project,
Series 1998, 5.125%, 10/01/28 - AMBAC Insured
5,375 San Francisco City and County Public Utilities Commission, 11/12 at 100.00 AAA 5,851,332
California, Water Revenue Bonds, Series 2002A,
5.000%, 11/01/19 - MBIA Insured
47
Nuveen California Quality Income Municipal Fund, Inc. (NUC) (continued)
Portfolio of INVESTMENTS August 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
Turlock Public Finance Authority, California, Sewerage
Revenue Bonds, Series 2003A:
$ 1,565 5.000%, 9/15/19 - FGIC Insured 9/13 at 100.00 AAA $ 1,711,249
1,650 5.000%, 9/15/20 - FGIC Insured 9/13 at 100.00 AAA 1,796,520
------------------------------------------------------------------------------------------------------------------------------------
$ 481,641 Total Long-Term Investments (cost $485,005,015) - 149.9% 528,600,328
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.5% 9,151,614
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.4)% (185,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 352,751,942
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
* Optional Call Provisions (not covered by the report of
independent registered public accounting firm): 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 (not covered by the report of independent
registered public accounting firm): 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.
48
Statement of
ASSETS AND LIABILITIES August 31, 2005
CALIFORNIA
CALIFORNIA CALIFORNIA CALIFORNIA INVESTMENT CALIFORNIA CALIFORNIA
VALUE PERFORMANCE PLUS OPPORTUNITY QUALITY SELECT QUALITY QUALITY INCOME
(NCA) (NCP) (NCO) (NQC) (NVC) (NUC)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at market value
(cost $234,367,818, $284,348,825,
$179,360,002, $300,343,538,
$511,845,385, $485,005,015,
respectively) $256,285,029 $307,088,007 $198,435,076 $324,196,646 $555,235,780 $528,600,328
Cash -- 33,851 -- -- 322,365 --
Receivables:
Interest 3,299,254 3,952,639 2,331,279 4,672,771 7,081,701 7,540,444
Investments sold 3,243,724 1,034,184 -- 1,056,493 1,074,158 10,185,917
Other assets 9,182 34,434 15,338 31,956 38,398 49,037
------------------------------------------------------------------------------------------------------------------------------------
Total assets 262,837,189 312,143,115 200,781,693 329,957,866 563,752,402 546,375,726
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 875,160 -- 257,437 988,583 -- 2,947,486
Payable for investments purchased 994,616 1,202,066 771,258 1,260,618 2,164,742 5,241,884
Accrued expenses:
Management fees 120,448 164,813 106,714 173,602 294,168 282,083
Other 65,141 67,134 39,981 68,452 156,270 106,814
Preferred share dividends payable N/A 17,035 19,640 20,278 49,864 45,517
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 2,055,365 1,451,048 1,195,030 2,511,533 2,665,044 8,623,784
------------------------------------------------------------------------------------------------------------------------------------
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 $260,781,824 $204,692,067 $131,586,663 $215,446,333 $369,087,358 $352,751,942
====================================================================================================================================
Common shares outstanding 25,241,808 12,965,742 8,154,681 13,580,232 23,096,654 21,999,728
====================================================================================================================================
Net asset value per Common share
outstanding (net assets applicable
to Common shares, divided by
Common shares outstanding) $ 10.33 $ 15.79 $ 16.14 $ 15.86 $ 15.98 $ 16.03
====================================================================================================================================
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 $ 219,997
Paid-in surplus 237,577,056 181,322,481 113,688,343 189,659,207 322,047,029 306,481,101
Undistributed net investment
income 44,642 744,084 1,108,793 943,916 2,504,303 1,822,613
Accumulated net realized
gain (loss)
from investments 990,497 (243,337) (2,367,094) 854,300 914,664 632,918
Net unrealized appreciation
of investments 21,917,211 22,739,182 19,075,074 23,853,108 43,390,395 43,595,313
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to
Common shares $260,781,824 $204,692,067 $131,586,663 $215,446,333 $369,087,358 $352,751,942
====================================================================================================================================
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.
49
Statement of
OPERATIONS Year Ended August 31, 2005
CALIFORNIA
CALIFORNIA CALIFORNIA CALIFORNIA INVESTMENT CALIFORNIA CALIFORNIA
VALUE PERFORMANCE PLUS OPPORTUNITY QUALITY SELECT QUALITY QUALITY INCOME
(NCA) (NCP) (NCO) (NQC) (NVC) (NUC)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $13,372,747 $15,054,914 $ 9,936,486 $15,904,690 $27,746,180 $27,082,786
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 1,434,801 1,947,309 1,258,344 2,054,771 3,470,033 3,319,637
Preferred shares - auction fees N/A 265,000 170,000 280,000 480,000 462,500
Preferred shares - dividend
disbursing agent fees N/A 30,000 20,000 20,000 30,000 30,000
Shareholders' servicing agent fees
and expenses 43,663 26,388 16,359 24,267 33,242 30,000
Custodian's fees and expenses 63,032 64,354 46,957 71,415 122,952 114,405
Directors' fees and expenses 5,176 6,096 4,246 5,854 9,519 9,533
Professional fees 15,423 39,628 28,493 21,210 22,692 30,350
Shareholders' reports - printing
and mailing expenses 22,750 24,350 17,195 20,532 36,072 36,370
Stock exchange listing fees 11,554 10,555 10,555 10,555 10,555 10,619
Investor relations expense 36,065 40,394 24,191 42,554 68,251 67,535
Other expenses 9,045 24,714 24,829 30,726 34,536 38,598
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian
fee credit 1,641,509 2,478,788 1,621,169 2,581,884 4,317,852 4,149,547
Custodian fee credit (10,924) (11,756) (8,807) (12,964) (23,412) (9,553)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 1,630,585 2,467,032 1,612,362 2,568,920 4,294,440 4,139,994
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 11,742,162 12,587,882 8,324,124 13,335,770 23,451,740 22,942,792
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
Net realized gain from investments 992,787 26,124 166,107 835,843 1,329,957 678,309
Change in net unrealized
appreciation (depreciation)
of investments 4,321,472 6,361,946 3,945,711 4,550,382 11,008,345 14,266,825
------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain 5,314,259 6,388,070 4,111,818 5,386,225 12,338,302 14,945,134
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED
SHAREHOLDERS
From net investment income N/A (1,569,978) (1,008,746) (1,714,541) (3,020,321) (2,896,581)
From accumulated net realized
gains from investments N/A (129,312) -- (86,722) (130,670) (116,424)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable
to Common shares from
distributions to Preferred
shareholders N/A (1,699,290) (1,008,746) (1,801,263) (3,150,991) (3,013,005)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to Common shares
from operations $17,056,421 $17,276,662 $11,427,196 $16,920,732 $32,639,051 $34,874,921
====================================================================================================================================
N/A - Fund is not authorized to issue Preferred shares.
See accompanying notes to financial statements.
50
Statement of
CHANGES IN NET ASSETS
CALIFORNIA VALUE (NCA) CALIFORNIA PERFORMANCE PLUS (NCP) CALIFORNIA OPPORTUNITY (NCO)
------------------------------ --------------------------------- -----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
8/31/05 8/31/04 8/31/05 8/31/04 8/31/05 8/31/04
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 11,742,162 $ 12,008,252 $ 12,587,882 $ 12,851,702 $ 8,324,124 $ 8,410,461
Net realized gain from
investments 992,787 2,319,697 26,124 2,167,610 166,107 742,324
Change in net unrealized
appreciation (depreciation)
of investments 4,321,472 6,308,476 6,361,946 8,089,622 3,945,711 6,419,737
Distributions to
Preferred Shareholders:
From net investment income N/A N/A (1,569,978) (780,694) (1,008,746) (503,354)
From accumulated net realized
gains from investments N/A N/A (129,312) (71) -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to Common
shares from operations 17,056,421 20,636,425 17,276,662 22,328,169 11,427,196 15,069,168
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (11,804,999) (12,049,077) (11,669,172) (12,427,198) (7,583,854) (7,763,200)
From accumulated net
realized gains
from investments (2,019,942) (1,785,958) (2,222,318) (2,579) -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable
to Common shares from
distributions to Common
shareholders (13,824,941) (13,835,035) (13,891,490) (12,429,777) (7,583,854) (7,763,200)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net
assets applicable
to Common shares 3,231,480 6,801,390 3,385,172 9,898,392 3,843,342 7,305,968
Net assets applicable to
Common shares at the
beginning of year 257,550,344 250,748,954 201,306,895 191,408,503 127,743,321 120,437,353
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of year $260,781,824 $257,550,344 $204,692,067 $201,306,895 $131,586,663 $127,743,321
====================================================================================================================================
Undistributed net investment
income at the end of year $ 44,642 $ 107,479 $ 744,084 $ 1,404,796 $ 1,108,793 $ 1,403,870
====================================================================================================================================
N/A - Fund is not authorized to issue Preferred shares.
See accompanying notes to financial statements.
51
Statement of
CHANGES IN NET ASSETS (continued)
CALIFORNIA CALIFORNIA CALIFORNIA
INVESTMENT QUALITY (NQC) SELECT QUALITY (NVC) QUALITY INCOME (NUC)
------------------------------ ----------------------------- ------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
8/31/05 8/31/04 8/31/05 8/31/04 8/31/05 8/31/04
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 13,335,770 $ 13,589,096 $ 23,451,740 $ 24,132,385 $ 22,942,792 $ 23,205,072
Net realized gain from
investments 835,843 2,364,123 1,329,957 3,395,405 678,309 2,114,115
Change in net unrealized
appreciation (depreciation)
of investments 4,550,382 7,064,201 11,008,345 14,117,283 14,266,825 13,820,855
Distributions to
Preferred Shareholders:
From net investment income (1,714,541) (844,306) (3,020,321) (1,397,366) (2,896,581) (1,484,370)
From accumulated net realized
gains from investments (86,722) (108,863) (130,670) (138,177) (116,424) (66,203)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to Common
shares from operations 16,920,732 22,064,251 32,639,051 40,109,530 34,874,921 37,589,469
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
COMMON SHAREHOLDERS
From net investment income (12,548,137) (13,143,809) (22,172,610) (22,364,963) (21,251,737) (22,324,260)
From accumulated net
realized gains
from investments (1,435,415) (1,385,531) (2,316,774) (1,699,283) (1,744,585) (1,020,300)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable
to Common shares from
distributions to Common
shareholders (13,983,552) (14,529,340) (24,489,384) (24,064,246) (22,996,322) (23,344,560)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions -- -- -- -- -- 348,755
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to Common shares 2,937,180 7,534,911 8,149,667 16,045,284 11,878,599 14,593,664
Net assets applicable to
Common shares at the
beginning of year 212,509,153 204,974,242 360,937,691 344,892,407 340,873,343 326,279,679
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable
to Common shares
at the end of year $215,446,333 $212,509,153 $369,087,358 $360,937,691 $352,751,942 $340,873,343
====================================================================================================================================
Undistributed net
investment income
at the end of year $ 943,916 $ 1,889,978 $ 2,504,303 $ 4,251,091 $ 1,822,613 $ 3,033,040
====================================================================================================================================
See accompanying notes to financial statements.
52
Notes to
FINANCIAL STATEMENTS
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). The Funds are registered under the
Investment Company Act of 1940, as amended, as closed-end, diversified
management investment companies.
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 or certain U.S. territories.
Effective January 1, 2005, Nuveen Advisory Corp. ("NAC"), the Funds' previous
Adviser, and its affiliate, Nuveen Institutional Advisory Corp. ("NIAC"), were
merged into Nuveen Asset Management ("NAM"), each wholly owned subsidiaries of
Nuveen Investments, Inc. ("Nuveen"). As a result of the merger, NAM is now the
Adviser to all funds previously advised by either NAC or NIAC.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with U.S.
generally accepted accounting principles.
Investment Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Funds' Board of Directors. When market
price quotes are not readily available (which is usually the case for municipal
securities), the pricing service or, in the absence of a pricing service for a
particular security, the Board of Directors of the Funds, or its designee, may
establish fair market value using a wide variety of market data including yields
or prices of municipal bonds of comparable quality, type of issue, coupon,
maturity and rating, market quotes or indications of value from securities
dealers, evaluations of anticipated cash flows or collateral, general market
conditions and other information and analysis, including the obligor's credit
characteristics considered relevant by the pricing service of the Board of
Directors' designee. 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.
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and
losses from transactions are determined on the specific identification method.
Investments purchased on a when-issued or delayed delivery basis may have
extended settlement periods. Any investments so purchased are subject to market
fluctuation during this period. The Funds have instructed the custodian to
segregate assets with a current value at least equal to the amount of the
when-issued and delayed delivery purchase commitments. At August 31, 2005,
California Value (NCA), California Performance Plus (NCP), California
Opportunity (NCO), California Investment Quality (NQC), California Select
Quality (NVC), and California Quality Income (NUC), had outstanding when-issued
purchase commitments of $203,457, $245,192, $156,506, $255,626, $443,432, and
$3,606,108, respectively.
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
Investment income also includes paydown gains and losses, if any.
Professional Fees
Professional fees presented in the Statement of Operations consist of legal fees
incurred in the normal course of operations, audit fees, tax consulting fees
and, in some cases, workout expenditures. Workout expenditures are incurred in
an attempt to protect or enhance an investment, or to pursue other claims or
legal actions on behalf of the Fund's shareholders.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute substantially all net investment income and net capital
gains to shareholders and to otherwise comply with the requirements of
Subchapter M of the Internal Revenue Code applicable to regulated investment
companies. Therefore, no federal income tax provision is required. Furthermore,
each Fund intends to satisfy conditions which will enable interest from
municipal securities, which is exempt from regular federal and California state
income taxes, to retain such tax-exempt status when distributed to shareholders
of the Funds. All monthly tax-exempt income dividends paid during the fiscal
year ended August 31, 2005, have been designated Exempt Interest Dividends. Net
realized capital gains and ordinary income distributions paid by the Funds are
subject to federal taxation.
53
Notes to
FINANCIAL STATEMENTS (continued)
Dividends and Distributions to Common Shareholders
Dividends from tax-exempt net investment income are declared monthly. Net
realized capital gains and/or market discount from investment transactions, if
any, are distributed to shareholders 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 U.S.
generally accepted accounting principles.
Preferred Shares
California Value (NCA) is not authorized to issue Preferred shares. The Funds
below have issued and outstanding Preferred shares, $25,000 stated value per
share, as a means of effecting financial leverage. Each Fund's Preferred shares
are issued in more than one Series. The dividend rate paid by the Funds on each
Series is determined every seven days, pursuant to a dutch auction process
overseen by the auction agent, and is payable at the end of each rate period.
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 fiscal year ended August 31, 2005.
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.
Indemnifications
Under the Funds' organizational documents, their Officers and Directors are
indemnified against certain liabilities arising out of the performance of their
duties to the Funds. In addition, in the normal course of business, the Funds
enter into contracts that provide general indemnifications to other parties. The
Funds' maximum exposure under these arrangements is unknown as this would
involve future claims that may be made against the Funds that have not yet
occurred. However, the Funds have not had prior claims or losses pursuant to
these contracts and expect the risk of loss to be remote.
Use of Estimates
The preparation of financial statements in conformity with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of increases and
decreases in net assets applicable to Common shares from operations during the
reporting period. Actual results may differ from those estimates.
54
2. FUND SHARES
Transactions in Common shares were as follows:
CALIFORNIA CALIFORNIA CALIFORNIA
VALUE (NCA) PERFORMANCE PLUS (NCP) OPPORTUNITY (NCO)
----------------------- ----------------------- -----------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
8/31/05 8/31/04 8/31/05 8/31/04 8/31/05 8/31/04
=========================================================================================================
Shares issued to
shareholders due to
reinvestment of distributions -- -- -- -- -- --
---------------------------------------------------------------------------------------------------------
CALIFORNIA CALIFORNIA CALIFORNIA
INVESTMENT QUALITY (NQC) SELECT QUALITY (NVC) QUALITY INCOME (NUC)
------------------------ ----------------------- -----------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
8/31/05 8/31/04 8/31/05 8/31/04 8/31/05 8/31/04
=========================================================================================================
Shares issued to
shareholders due to
reinvestment of distributions -- -- -- -- -- 22,300
---------------------------------------------------------------------------------------------------------
3. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities during the fiscal year ended August 31, 2005, 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 $ 9,225,824 $14,011,390 $13,823,476 $14,739,276 $57,564,158 $32,243,908
Sales and maturities 13,706,101 16,666,258 12,791,921 15,739,955 45,643,194 37,076,418
=========================================================================================================
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 the treatment of paydown gains and losses, timing differences
in recognizing taxable market discount and timing differences in recognizing
certain gains and losses on investment transactions.
At August 31, 2005, the cost of investments was 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 $234,297,738 $284,067,305 $178,939,494 $299,913,201 $511,834,580 $484,770,828
==================================================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at August 31, 2005, 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 $22,011,116 $23,020,702 $19,495,582 $24,286,098 $43,630,304 $43,829,500
Depreciation (23,825) -- -- (2,653) (229,104) --
------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation
of investments $21,987,291 $23,020,702 $19,495,582 $24,283,445 $43,401,200 $43,829,500
==================================================================================================================
The tax components of undistributed net investment income and net realized gains
at August 31, 2005, were as follows:
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
CALIFORNIA PERFORMANCE CALIFORNIA INVESTMENT SELECT QUALITY
VALUE PLUS OPPORTUNITY QUALITY QUALITY INCOME
(NCA) (NCP) (NCO) (NQC) (NVC) (NUC)
------------------------------------------------------------------------------------------------------------------
Undistributed net
tax-exempt income * $944,832 $1,393,697 $1,327,689 $1,518,418 $4,089,129 $3,305,919
Undistributed net
ordinary income ** 123,279 -- -- 102,358 15,117 --
Undistributed net
long-term capital gains 868,757 312 -- 751,942 1,143,768 632,919
==================================================================================================================
* Undistributed net tax exempt income (on a tax basis) has not been reduced
for the dividend declared on August 1, 2005, paid on September 1, 2005.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
55
Notes to
FINANCIAL STATEMENTS (continued)
The tax character of distributions paid during the fiscals year ended August 31,
2005 and August 31, 2004, 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
2005 (NCA) (NCP) (NCO) (NQC) (NVC) (NUC)
------------------------------------------------------------------------------------------------------------------
Distributions from net
tax-exempt income $11,661,719 $13,327,648 $8,607,230 $14,342,984 $24,952,005 $24,276,134
Distributions from net
ordinary income ** 143,281 -- -- -- 292,603 --
Distributions from net
long-term
capital gains 2,019,942 2,351,630 -- 1,522,137 2,447,444 1,861,009
==================================================================================================================
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
CALIFORNIA PERFORMANCE CALIFORNIA INVESTMENT SELECT QUALITY
VALUE PLUS OPPORTUNITY QUALITY QUALITY INCOME
2004 (NCA) (NCP) (NCO) (NQC) (NVC) (NUC)
------------------------------------------------------------------------------------------------------------------
Distributions from net
tax-exempt income $12,078,206 $12,806,121 $8,178,868 $13,787,139 $23,664,226 $23,353,732
Distributions from net
ordinary income ** 46,597 398,934 61,570 232,284 57,960 538,127
Distributions from net
long-term
capital gains 1,785,958 2,650 -- 1,465,179 1,837,461 999,516
==================================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
At August 31, 2005, California Opportunity (NCO) had unused capital loss
carryforwards of $2,367,094 available for federal income tax purposes to be
applied against future capital gains, if any. If not applied, $851,972 of the
carryforwards will expire in the year 2011 and $1,515,122 will expire in 2012.
California Performance Plus (NCP) elected to defer net realized losses from
investments incurred from November 1, 2004 through August 31, 2005
("post-October losses") in accordance with Federal income tax regulations. The
post-October losses of $243,649 are treated as having arisen on the first day of
the following fiscal year.
5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Each Fund's management fee is separated into two components - a complex-level
component, based on the aggregate amount of all fund assets managed by the
Adviser, and a specific fund-level component, based only on the amount of assets
within each individual fund. This pricing structure enables Nuveen fund
shareholders to benefit from growth in the assets within each individual fund as
well as from growth in the amount of complex-wide assets managed by the Adviser.
California Value (NCA) pays an annual fund-level fee, payable monthly, of .15%
of the average daily net assets of the Fund, as well as 4.125% of the gross
interest income of the Fund.
The annual fund-level fee, payable monthly, for each of the Funds (excluding
California Value (NCA)) is 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) FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For the next $3 billion .3875
For net assets over $5 billion .3750
================================================================================
56
The annual complex-level fee, payable monthly, which is additive to the
fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the
aggregate amount of total fund assets managed as stated in the table below. As
of August 31, 2005, the complex level fee rate was .1896%.
COMPLEX-LEVEL ASSETS (1) COMPLEX-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $55 billion .2000%
For the next $1 billion .1800
For the next $1 billion .1600
For the next $3 billion .1425
For the next $3 billion .1325
For the next $3 billion .1250
For the next $5 billion .1200
For the next $5 billion .1175
For the next $15 billion .1150
For Managed Assets over $91 billion (2) .1400
================================================================================
(1) The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate Managed Assets ("Managed Assets" means
the average daily net assets of each fund including assets attributable to
all types of leverage used by the Nuveen funds) of Nuveen-sponsored funds
in the U.S.
(2) With respect to the complex-wide Managed Assets over $91 billion, the fee
rate or rates that will apply to such assets will be determined at a later
date. In the unlikely event that complex-wide Managed Assets reach $91
billion prior to a determination of the complex-level fee rate or rates to
be applied to Managed Assets in excess of $91 billion, the complex-level
fee rate for such complex-wide Managed Assets shall be .1400% until such
time as a different rate or rates is determined.
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 or its affiliates. The Board of Directors
has adopted a deferred compensation plan for independent Directors that enables
Directors to elect to defer receipt of all or a portion of the annual
compensation they are entitled to receive from certain Nuveen advised Funds.
Under the plan, deferred amounts are treated as though equal dollar amounts had
been invested in shares of select Nuveen advised Funds.
6. ANNOUNCEMENT REGARDING PARENT COMPANY OF ADVISER
In early April, 2005, The St. Paul Travelers Companies, Inc. ("St. Paul
Travelers"), which owned 79% of Nuveen, (A) completed a public offering of a
substantial portion of its equity stake in Nuveen, (B) sold Nuveen $200 million
of its Nuveen shares, (C) entered into an agreement with Nuveen to sell an
additional $400 million of its Nuveen shares on a "forward" basis with payment
for and settlement of these shares delayed for several months, and (D) entered
into agreements with two unaffiliated investment banking firms to sell an amount
equal to most or all of its remaining Nuveen shares for current payment but for
future settlement. Transactions (C) and (D) above were settled in late July,
which effectively reduced St. Paul Travelers' controlling stake in Nuveen and
was deemed an "assignment" (as defined in the 1940 Act) of the investment
management agreements between the Funds and the Adviser, which resulted in the
automatic termination of each agreement under the 1940 Act. In anticipation of
such deemed assignment, the Board of Directors had approved new ongoing
investment management agreements for each Fund and the submission of those
agreements for approval by each respective Fund's shareholders, which
shareholder approval was received prior to the settlement of transactions (C)
and (D). The new ongoing management agreements took effect upon such settlement.
7. SUBSEQUENT EVENT - DISTRIBUTIONS TO COMMON SHAREHOLDERS
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on October 3, 2005, to shareholders of record
on September 15, 2005, 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 $.0385 $.0705 $.0725 $.0695 $.0740 $.0760
=========================================================================================================
57
Financial
HIGHLIGHTS
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
---------------------------------------------------------------- --------------------------------
Distributions Distributions
from Net from Net
Beginning Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA VALUE (NCA)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2005 $10.20 $ .47 $ .21 $N/A $N/A $ .68 $(.47) $(.08) $ (.55)
2004 9.93 .48 .34 N/A N/A .82 (.48) (.07) (.55)
2003 10.27 .50 (.32) N/A N/A .18 (.51) (.01) (.52)
2002 10.31 .51 (.03) N/A N/A .48 (.52) -- (.52)
2001 9.85 .51 .47 N/A N/A .98 (.52) -- (.52)
CALIFORNIA PERFORMANCE PLUS (NCP)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2005 15.53 .97 .49 (.12) (.01) 1.33 (.90) (.17) (1.07)
2004 14.76 .99 .80 (.06) -- 1.73 (.96) -- (.96)
2003 15.32 1.02 (.58) (.08) -- .36 (.92) -- (.92)
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)
CALIFORNIA OPPORTUNITY (NCO)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2005 15.67 1.02 .50 (.12) -- 1.40 (.93) -- (.93)
2004 14.77 1.03 .88 (.06) -- 1.85 (.95) -- (.95)
2003 15.26 1.04 (.55) (.07) -- .42 (.91) -- (.91)
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)
====================================================================================================================================
Total Returns
--------------------
Based
on
Ending Common
Common Based Share
Share Ending on Net
Net Asset Market Market Asset
Value Value Value* Value*
--------------------------------------------------------------------------
CALIFORNIA VALUE (NCA)
--------------------------------------------------------------------------
Year Ended 8/31:
2005 $10.33 $ 9.92 13.33% 6.82%
2004 10.20 9.27 8.02 8.40
2003 9.93 9.10 (3.55) 1.73
2002 10.27 9.95 6.61 4.80
2001 10.31 9.83 11.41 10.20
CALIFORNIA PERFORMANCE PLUS (NCP)
--------------------------------------------------------------------------
Year Ended 8/31:
2005 15.79 14.52 9.66 8.89
2004 15.53 14.26 9.65 12.00
2003 14.76 13.90 (1.30) 2.30
2002 15.32 15.00 1.11 6.84
2001 15.32 15.85 7.88 9.13
CALIFORNIA OPPORTUNITY (NCO)
--------------------------------------------------------------------------
Year Ended 8/31:
2005 16.14 15.61 15.00 9.19
2004 15.67 14.45 10.63 12.86
2003 14.77 13.95 (2.45) 2.73
2002 15.26 15.22 (.26) 6.51
2001 15.32 16.30 8.65 9.51
==========================================================================
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:
2005 $260,782 .63% 4.54% .63% 4.54% 4%
2004 257,550 .65 4.70 .65 4.70 28
2003 250,749 .66 4.84 .66 4.85 24
2002 259,346 .68 5.06 .68 5.07 4
2001 260,145 .70 5.14 .69 5.15 7
CALIFORNIA PERFORMANCE PLUS (NCP)
----------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2005 204,692 1.23 6.22 1.22 6.23 5
2004 201,307 1.26 6.48 1.25 6.49 16
2003 191,409 1.26 6.65 1.25 6.66 30
2002 198,594 1.28 7.04 1.27 7.05 11
2001 197,642 1.26 7.57 1.25 7.59 27
CALIFORNIA OPPORTUNITY (NCO)
----------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2005 131,587 1.25 6.42 1.25 6.43 7
2004 127,743 1.28 6.72 1.28 6.73 13
2003 120,437 1.27 6.74 1.26 6.75 16
2002 124,425 1.30 7.13 1.29 7.14 11
2001 124,296 1.30 7.68 1.28 7.69 31
============================================================================================================================
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:
2005 $ N/A $ N/A $ N/A
2004 N/A N/A N/A
2003 N/A N/A N/A
2002 N/A N/A N/A
2001 N/A N/A N/A
CALIFORNIA PERFORMANCE PLUS (NCP)
---------------------------------------------------------------------
Year Ended 8/31:
2005 106,000 25,000 73,276
2004 106,000 25,000 72,478
2003 106,000 25,000 70,144
2002 106,000 25,000 71,838
2001 106,000 25,000 71,614
CALIFORNIA OPPORTUNITY (NCO)
---------------------------------------------------------------------
Year Ended 8/31:
2005 68,000 25,000 73,377
2004 68,000 25,000 71,964
2003 68,000 25,000 69,278
2002 68,000 25,000 70,745
2001 68,000 25,000 70,697
=====================================================================
N/A Fund is not authorized to issue Preferred shares.
* Total Investment Return on Market Value is the combination of changes in
the market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. Total Return on Common Share Net
Asset Value is the combination of changes in Common Share net asset value,
reinvested dividend income at net asset value and reinvested capital gains
distributions at net asset value, if any. 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.
See accompanying notes to financial statements.
58-59 SPREAD
Financial HIGHLIGHTS (continued)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
---------------------------------------------------------------- --------------------------------
Distributions Distributions
from Net from Net
Beginning Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA INVESTMENT QUALITY (NQC)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2005 $15.65 $ .98 $ .40 $(.13) $(.01) $1.24 $ (.92) $(.11) $(1.03)
2004 15.09 1.00 .70 (.06) (.01) 1.63 (.97) (.10) (1.07)
2003 15.78 1.06 (.71) (.08) -- .27 (.94) (.02) (.96)
2002 15.78 1.08 (.02) (.11) (.01) .94 (.92) (.02) (.94)
2001 14.83 1.15 .97 (.25) -- 1.87 (.92) -- (.92)
CALIFORNIA SELECT QUALITY (NVC)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2005 15.63 1.02 .53 (.13) (.01) 1.41 (.96) (.10) (1.06)
2004 14.93 1.04 .77 (.06) (.01) 1.74 (.97) (.07) (1.04)
2003 15.53 1.05 (.63) (.07) -- .35 (.94) (.01) (.95)
2002 15.63 1.08 .01 (.08) (.04) .97 (.91) (.16) (1.07)
2001 14.90 1.18 .72 (.26) -- 1.64 (.91) -- (.91)
CALIFORNIA QUALITY INCOME (NUC)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2005 15.49 1.04 .69 (.13) (.01) 1.59 (.97) (.08) (1.05)
2004 14.85 1.05 .73 (.07) -- 1.71 (1.02) (.05) (1.07)
2003 15.84 1.08 (.87) (.07) (.01) .13 (1.00) (.12) (1.12)
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)
====================================================================================================================================
Total Returns
--------------------
Based
on
Ending Common
Common Based Share
Share Ending on Net
Net Asset Market Market Asset
Value Value Value* Value*
-------------------------------------------------------------------------
CALIFORNIA INVESTMENT QUALITY (NQC)
Year Ended 8/31:
2005 $15.86 $15.10 9.33% 8.18%
2004 15.65 14.80 8.94 11.11
2003 15.09 14.61 .29 1.60
2002 15.78 15.52 (.55) 6.28
2001 15.78 16.58 12.54 13.09
CALIFORNIA SELECT QUALITY (NVC)
-------------------------------------------------------------------------
Year Ended 8/31:
2005 15.98 15.69 13.70 9.33
2004 15.63 14.81 12.38 11.97
2003 14.93 14.14 (2.78) 2.24
2002 15.53 15.51 2.79 6.61
2001 15.63 16.18 10.70 11.43
CALIFORNIA QUALITY INCOME (NUC)
-------------------------------------------------------------------------
Year Ended 8/31:
2005 16.03 15.73 12.30 10.57
2004 15.49 15.00 9.67 11.76
2003 14.85 14.67 (2.38) .71
2002 15.84 16.14 4.15 4.79
2001 16.16 16.55 8.51 11.44
=========================================================================
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:
2005 $215,446 1.21% 6.24% 1.20% 6.25% 5%
2004 212,509 1.22 6.48 1.22 6.49 20
2003 204,974 1.21 6.73 1.21 6.73 26
2002 214,261 1.25 7.03 1.23 7.04 11
2001 213,221 1.25 7.64 1.23 7.65 34
CALIFORNIA SELECT QUALITY (NVC)
---------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2005 369,087 1.19 6.44 1.18 6.44 8
2004 360,938 1.21 6.78 1.20 6.78 14
2003 344,892 1.20 6.78 1.20 6.78 20
2002 358,632 1.23 7.14 1.22 7.15 19
2001 359,318 1.24 7.81 1.22 7.83 29
CALIFORNIA QUALITY INCOME (NUC)
---------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2005 352,752 1.20 6.62 1.20 6.63 6
2004 340,873 1.22 6.89 1.21 6.89 16
2003 326,280 1.22 6.90 1.21 6.91 46
2002 347,561 1.23 7.58 1.22 7.59 22
2001 352,693 1.23 7.77 1.21 7.78 18
=================================================================================================================================
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:
2005 $112,000 $25,000 $73,091
2004 112,000 25,000 72,435
2003 112,000 25,000 70,753
2002 112,000 25,000 72,826
2001 112,000 25,000 72,594
CALIFORNIA SELECT QUALITY (NVC)
---------------------------------------------------------------------------
Year Ended 8/31:
2005 192,000 25,000 73,058
2004 192,000 25,000 71,997
2003 192,000 25,000 69,908
2002 192,000 25,000 71,697
2001 192,000 25,000 71,786
CALIFORNIA QUALITY INCOME (NUC)
---------------------------------------------------------------------------
Year Ended 8/31:
2005 185,000 25,000 72,669
2004 185,000 25,000 71,064
2003 185,000 25,000 69,092
2002 185,000 25,000 71,968
2001 185,000 25,000 72,661
===========================================================================
* Total Investment Return on Market Value is the combination of changes in
the market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. Total Return on Common Share Net
Asset Value is the combination of changes in Common Share net asset value,
reinvested dividend income at net asset value and reinvested capital gains
distributions at net asset value, if any. 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.
See accompanying notes to financial statements.
60-61 SPREAD
Board Members
AND OFFICERS
The management of the Funds, including general supervision of the duties
performed for the Funds by the Adviser, is the responsibility of the Board
Members of the Funds. The number of board members of the Fund is currently set
at nine. None of the board members who are not "interested" persons of the Funds
has ever been a director or employee of, or consultant to, Nuveen or its
affiliates. The names and business addresses of the board members and officers
of the Funds, their principal occupations and other affiliations during the past
five years, the number of portfolios each oversees and other directorships they
hold are set forth below.
NUMBER OF
PORTFOLIOS IN
POSITION(S) YEAR FIRST PRINCIPAL OCCUPATION(S) FUND COMPLEX
NAME, BIRTHDATE HELD WITH ELECTED OR INCLUDING OTHER DIRECTORSHIPS OVERSEEN BY
AND ADDRESS THE FUNDS APPOINTED(2) DURING PAST 5 YEARS BOARD MEMBER
------------------------------------------------------------------------------------------------------------------------------------
BOARD MEMBER WHO IS AN INTERESTED PERSON OF THE FUNDS:
------------------------------------------------------------------------------------------------------------------------------------
Timothy R. Schwertfeger(1) Chairman of 1994 Chairman (since 1996) and Director of Nuveen Investments, 155
3/28/49 the Board Inc., Nuveen Investments, LLC, Nuveen Advisory Corp. and
333 W. Wacker Drive and Trustee Nuveen Institutional Advisory Corp.(3); Director (since 1996)
Chicago, IL 60606 of Institutional Capital Corporation; Chairman and Director
(since 1997) of Nuveen Asset Management; Chairman and
Director of Rittenhouse Asset Management, Inc. (since 1999);
Chairman of Nuveen Investments Advisers Inc. (since 2002).
BOARD MEMBERS WHO ARE NOT INTERESTED PERSONS OF THE FUNDS:
------------------------------------------------------------------------------------------------------------------------------------
Robert P. Bremner Board member 1997 Private Investor and Management Consultant. 155
8/22/40
333 W. Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Lawrence H. Brown Board member 1993 Retired (since 1989) as Senior Vice President of The 155
7/29/34 Northern Trust Company; Director (since 2002) Community
333 W. Wacker Drive Advisory Board for Highland Park and Highwood, United
Chicago, IL 60606 Way of the North Shore.
------------------------------------------------------------------------------------------------------------------------------------
Jack B. Evans Board member 1999 President, The Hall-Perrine Foundation, a private philanthropic 155
10/22/48 corporation (since 1996); Director and Vice Chairman, United
333 W. Wacker Drive Fire Group, a publicly held company; Adjunct Faculty Member,
Chicago, IL 60606 University of Iowa; Director, Gazette Companies; Life Trustee
of Coe College; Director, Iowa College Foundation; formerly,
Director, Alliant Energy; formerly, Director, Federal Reserve
Bank of Chicago; formerly, President and Chief Operating Officer,
SCI Financial Group, Inc., a regional financial services firm.
------------------------------------------------------------------------------------------------------------------------------------
William C. Hunter Board member 2004 Dean and Distinguished Professor of Finance, School of 155
3/6/48 Business at the University of Connecticut (since 2002);
333 W. Wacker Drive previously, Senior Vice President and Director of Research
Chicago, IL 60606 at the Federal Reserve Bank of Chicago (1995-2003); Director
(since 1997), Credit Research Center at Georgetown University;
Director (since 2004) of Xerox Corporation.
------------------------------------------------------------------------------------------------------------------------------------
David J. Kundert Board member 2005 Retired (since 2004) as Chairman, JPMorgan Fleming Asset 153
10/28/42 Management, President and CEO, Banc One Investment
333 W. Wacker Drive Advisors Corporation, and President, One Group Mutual
Chicago, IL 60606 Funds; prior thereto, Executive Vice President, Banc One
Corporation and Chairman and CEO, Banc One Investment
Management Group; Board of Regents, Luther College;
currently a member of the American and Wisconsin Bar
Associations.
62
NUMBER OF
PORTFOLIOS IN
POSITION(S) YEAR FIRST PRINCIPAL OCCUPATION(S) FUND COMPLEX
NAME, BIRTHDATE HELD WITH ELECTED OR INCLUDING OTHER DIRECTORSHIPS OVERSEEN BY
AND ADDRESS THE FUNDS APPOINTED(2) DURING PAST 5 YEARS BOARD MEMBER
------------------------------------------------------------------------------------------------------------------------------------
BOARD MEMBERS WHO ARE NOT INTERESTED PERSONS OF THE FUNDS (CONTINUED):
------------------------------------------------------------------------------------------------------------------------------------
William J. Schneider Board member 1997 Chairman, formerly, Senior Partner and Chief Operating 155
9/24/44 Officer (retired, December 2004), Miller-Valentine Partners
333 W. Wacker Drive Ltd., a real estate investment company; formerly, Vice
Chicago, IL 60606 President, Miller-Valentine Realty, a construction company;
Chair of the Finance Committee and member of the Audit
Committee of Premier Health Partners, the not-for-profit
company of Miami Valley Hospital; President, Dayton
Philharmonic Orchestra Association; Board Member,
Regional Leaders Forum, which promotes cooperation on
economic development issues; Director and Immediate
Past Chair, Dayton Development Coalition; formerly, Member,
Community Advisory Board, National City Bank, Dayton,
Ohio and Business Advisory Council, Cleveland Federal
Reserve Bank.
------------------------------------------------------------------------------------------------------------------------------------
Judith M. Stockdale Board member 1997 Executive Director, Gaylord and Dorothy Donnelley 155
12/29/47 Foundation (since 1994); prior thereto, Executive Director,
333 W. Wacker Drive Great Lakes Protection Fund (from 1990 to 1994).
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Eugene S. Sunshine Board member 2005 Senior Vice President for Business and Finance, 155
1/22/50 Northwestern University (since 1997); Director (since 2003),
333 W. Wacker Drive Chicago Board of Options Exchange; Director (since 2003),
Chicago, IL 60606 National Mentor Holdings, a privately-held, national provider
of home and community-based services; Chairman (since
1997), Board of Directors, Rubicon, a pure captive insurance
company owned by Northwestern University; Director (since
1997), Evanston Chamber of Commerce and Evanston
Inventure, a business development organization.
NUMBER OF
PORTFOLIOS IN
POSITION(S) YEAR FIRST FUND COMPLEX
NAME, BIRTHDATE HELD WITH ELECTED OR PRINCIPAL OCCUPATION(S) OVERSEEN BY
AND ADDRESS THE FUNDS APPOINTED(4) DURING PAST 5 YEARS OFFICER
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUND:
------------------------------------------------------------------------------------------------------------------------------------
Gifford R. Zimmerman Chief 1988 Managing Director (since 2002), Assistant Secretary and 155
9/9/56 Administrative Associate General Counsel, formerly, Vice President and
333 W. Wacker Drive Officer Assistant General Counsel, of Nuveen Investments, LLC;
Chicago, IL 60606 Managing Director (2002-2004), General Counsel (1998-2004)
and Assistant Secretary, formerly, Vice President of Nuveen
Advisory Corp. and Nuveen Institutional Advisory Corp.(3);
Managing Director (since 2002) and Assistant Secretary and
Associate General Counsel, formerly, Vice President (since
1997), of Nuveen Asset Management; Managing Director
(since 2004) and Assistant Secretary (since 1994) of Nuveen
Investments, Inc.; Assistant Secretary of NWQ Investment
Management Company, LLC. (since 2002); Vice President and
Assistant Secretary of Nuveen Investments Advisers Inc.
(since 2002); Managing Director, Associate General Counsel
and Assistant Secretary of Rittenhouse Asset Management,
Inc. (since 2003); Chartered Financial Analyst.
63
Board Members
AND OFFICERS (CONTINUED)
NUMBER OF
PORTFOLIOS IN
POSITION(S) YEAR FIRST FUND COMPLEX
NAME, BIRTHDATE HELD WITH ELECTED OR PRINCIPAL OCCUPATION(S) OVERSEEN BY
AND ADDRESS THE FUNDS APPOINTED(4) DURING PAST 5 YEARS OFFICER
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS (CONTINUED):
------------------------------------------------------------------------------------------------------------------------------------
Julia L. Antonatos Vice President 2004 Managing Director (since 2005), formerly Vice President 155
9/22/63 (since 2002); formerly, Assistant Vice President (since 2000)
333 W. Wacker Drive of Nuveen Investments, LLC; Chartered Financial Analyst.
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Michael T. Atkinson Vice President 2000 Vice President (since 2002), formerly, Assistant Vice 155
2/3/66 and Assistant President (since 2000) of Nuveen Investments, LLC.
333 W. Wacker Drive Secretary
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Peter H. D'Arrigo Vice President 1999 Vice President of Nuveen Investments, LLC (since 1999); Vice 155
11/28/67 and Treasurer President and Treasurer (since 1999) of Nuveen Investments,
333 W. Wacker Drive Inc.; Vice President and Treasurer (1999-2004) of Nuveen
Chicago, IL 60606 Advisory Corp. and Nuveen Institutional Advisory Corp.(3);
Vice President and Treasurer of Nuveen Asset Management
(since 2002) and of Nuveen Investments Advisers Inc. (since
2002); Assistant Treasurer of NWQ Investment Management
Company, LLC. (since 2002); Vice President and Treasurer of
Nuveen Rittenhouse Asset Management, Inc. (since 2003);
Chartered Financial Analyst.
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Jessica R. Droeger Vice President 1998 Vice President (since 2002), Assistant Secretary and 155
9/24/64 and Secretary Assistant General Counsel (since 1998) formerly, Assistant
333 W. Wacker Drive Vice President (since 1998) of Nuveen Investments, LLC;
Chicago, IL 60606 Vice President (2002-2004) and Assistant Secretary (1998-2004)
formerly, Assistant Vice President of Nuveen Advisory Corp.
and Nuveen Institutional Advisory Corp.(3); Vice President and
Assistant Secretary (since 2005) of Nuveen Asset Management.
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Lorna C. Ferguson Vice President 1998 Managing Director (since 2004), formerly, Vice President of 155
10/24/45 Nuveen Investments, LLC, Managing Director (2004) formerly,
333 W. Wacker Drive Vice President (1998-2004) of Nuveen Advisory Corp. and
Chicago, IL 60606 Nuveen Institutional Advisory Corp.(3); Managing Director
(since 2005) of Nuveen Asset Management.
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William M. Fitzgerald Vice President 1995 Managing Director (since 2002), formerly, Vice President of 155
3/2/64 Nuveen Investments; Managing Director (1997-2004) of
333 W. Wacker Drive Nuveen Advisory Corp. and Nuveen Institutional Advisory
Chicago, IL 60606 Corp.(3); Managing Director of Nuveen Asset Management
(since 2001); Vice President of Nuveen Investments Advisers
Inc. (since 2002); Chartered Financial Analyst.
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Stephen D. Foy Vice President 1998 Vice President (since 1993) and Funds Controller (since 1998) 155
5/31/54 and Controller of Nuveen Investments, LLC; formerly, Vice President and
333 W. Wacker Drive Funds Controller (1998-2004) of Nuveen Investments, Inc.;
Chicago, IL 60606 Certified Public Accountant.
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James D. Grassi Vice President 2004 Vice President and Deputy Director of Compliance (since 2004) 155
4/13/56 and Chief of Nuveen Investments, LLC, Nuveen Investments Advisers Inc.,
333 W. Wacker Drive Compliance Nuveen Asset Management and Rittenhouse Asset Management,
Chicago, IL 60606 Officer Inc.; previously, Vice President and Deputy Director of Compliance
(2004) of Nuveen Advisory Corp. and Nuveen Institutional Advisory
Corp.(3); formerly, Senior Attorney (1994-2004), The Northern
Trust Company.
64
NUMBER OF
PORTFOLIOS IN
POSITION(S) YEAR FIRST FUND COMPLEX
NAME, BIRTHDATE HELD WITH ELECTED OR PRINCIPAL OCCUPATION(S) OVERSEEN BY
AND ADDRESS THE FUNDS APPOINTED(4) DURING PAST 5 YEARS OFFICER
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OFFICERS OF THE FUNDS (CONTINUED):
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David J. Lamb Vice President 2000 Vice President (since 2000) of Nuveen Investments, 155
3/22/63 LLC; Certified Public Accountant.
333 W. Wacker Drive
Chicago, IL 60606
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Tina M. Lazar Vice President 2002 Vice President of Nuveen Investments, LLC (since 1999). 155
8/27/61
333 W. Wacker Drive
Chicago, IL 60606
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Larry W. Martin Vice President 1988 Vice President, Assistant Secretary and Assistant General 155
7/27/51 and Assistant Counsel of Nuveen Investments, LLC; Vice President and
333 W. Wacker Drive Secretary Assistant Secretary of Nuveen Advisory Corp. and Nuveen
Chicago, IL 60606 Institutional Advisory Corp.(3); Vice President (since 2005)
and Assistant Secretary of Nuveen Investments, Inc.; Vice
President (since 2005) and Assistant Secretary (since 1997)
of Nuveen Asset Management; Vice President (since 2000),
Assistant Secretary and Assistant General Counsel (since
1998) of Rittenhouse Asset Management, Inc.; Vice President
and Assistant Secretary of Nuveen Investments Advisers Inc.
(since 2002); Assistant Secretary of NWQ Investment
Management Company, LLC (since 2002).
(1) Mr. Schwertfeger is an "interested person" of the Funds, as defined in the
Investment Company Act of 1940, because he is an officer and board member of
the Adviser.
(2) Board members serve an indefinite term until his/her successor is elected.
The year first elected or appointed represents the year in which the board
member was first elected or appointed to any fund in the Nuveen Complex.
(3) Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp. were
reorganized into Nuveen Asset Management, effective January 1, 2005.
(4) Officers serve one year terms through July of each year. The year first
elected or appointed represents the year in which the Officer was first
elected or appointed to any fund in the Nuveen Complex.
65
ANNUAL INVESTMENT
MANAGEMENT AGREEMENT
APPROVAL PROCESS
At a meeting held on May 10-12, 2005, the Board of Trustees of the Funds,
including the independent Trustees, unanimously approved the Investment
Management Agreement between each Fund and NAM.
THE APPROVAL PROCESS
To assist the Board in its evaluation of an advisory contract with NAM, the
independent Trustees received a report in adequate time in advance of their
meeting which outlined, among other things, the services provided by NAM; the
organization of NAM, including the responsibilities of various departments and
key personnel; the Fund's past performance as well as the Fund's performance
compared to funds of similar investment objectives compiled by an independent
third party (a "Peer Group") and if available, with recognized or, in certain
cases, customized benchmarks; the profitability of NAM and certain industry
profitability analyses for advisers to unaffiliated investment companies; the
expenses of NAM in providing the various services; the management fees of NAM,
including comparisons of such fees with the management fees of comparable funds
in its Peer Group as well as comparisons of NAM's management fees with the fees
NAM assesses to other types of investment products or accounts, if any; the soft
dollar practices of NAM; and the expenses of each Fund, including comparisons of
the Fund's expense ratios (after any fee waivers) with the expense ratios of its
Peer Group. This information supplements that received by the Board throughout
the year regarding Fund performance, expense ratios, portfolio composition,
trade execution and sales activity.
In addition to the foregoing materials, independent legal counsel to the
independent Trustees provided, in advance of the meeting, a legal memorandum
outlining, among other things, the duties of the Trustees under the 1940 Act as
well as the general principles of relevant state law in reviewing and approving
advisory contracts; the requirements of the 1940 Act in such matters; an
adviser's fiduciary duty with respect to advisory agreements and compensation;
the standards used by courts in determining whether investment company boards of
directors have fulfilled their duties and factors to be considered by the board
in voting on advisory agreements.
At the Board meeting, NAM made a presentation to and responded to questions from
the Board. After the presentations and after reviewing the written materials,
the independent Trustees met privately with their legal counsel to review the
Board's duties in reviewing advisory contracts and consider the renewal of the
advisory contract. It is with this background that the Trustees considered each
Investment Management Agreement with NAM. The independent Trustees, in
consultation with independent counsel, reviewed the factors set out in judicial
decisions and SEC directives relating to the renewal of advisory contracts. As
outlined in more detail below, the Trustees considered all factors they believed
relevant with respect to each Fund, including the following: (a) the nature,
extent and quality of the services to be provided by NAM; (b) the investment
performance of the Fund and NAM; (c) the costs of the services to be provided
and profits to be realized by NAM and its affiliates from the relationship with
the Fund; (d) the extent to which economies of scale would be realized as the
Fund grows; and (e) whether fee levels reflect these economies of scale for the
benefit of Fund investors.
A. NATURE, EXTENT AND QUALITY OF SERVICES
In evaluating the nature, extent and quality of NAM's services, the Trustees
reviewed information concerning the types of services that NAM or its affiliates
provide and are expected to provide to the Nuveen Funds; narrative and
statistical information concerning the Fund's performance record and how such
performance compares to the Fund's Peer Group and, if available, recognized
benchmarks or, in certain cases, customized benchmarks (as described in further
detail in Section B below); information describing NAM's organization and its
various departments, the experience and responsibilities of key personnel, and
available resources. In the discussion of key personnel, the Trustees received
materials regarding the changes or additions in personnel of NAM. The Trustees
further noted the willingness of the personnel of NAM to engage in open, candid
discussions with the Board. The Trustees further considered the quality of NAM's
investment process in making portfolio management decisions, including any
refinements or improvements to the portfolio management processes, enhancements
to technology and systems that are available to portfolio managers, and any
additions of new personnel which may strengthen or expand the research and
investment capabilities of NAM. In their review of advisory contracts for the
fixed income funds, such as the Funds, the Trustees also noted that Nuveen won
the Lipper Award for Best Fund Family: Fixed Income-Large Asset Class, for 2004.
Given the Trustees' experience with the Funds, other Nuveen funds and NAM, the
Trustees noted that they were familiar with and continue to have a good
understanding of the organization, operations and personnel of NAM.
In addition to advisory services, the independent Trustees considered the
quality of the administrative or non-advisory services provided. In this regard,
NAM provides the Fund with such administrative and other services (exclusive of,
and in addition to, any such services provided by others for the Funds) and
officers and other personnel as are necessary for the operations of the
respective Fund. In addition to investment management services, NAM and its
affiliates provide each Fund with a wide range of services, including:
66
preparing shareholder reports; providing daily accounting; providing quarterly
financial statements; overseeing and coordinating the activities of other
service providers; administering and organizing Board meetings and preparing the
Board materials for such meetings; providing legal support (such as helping to
prepare registration statements, amendments thereto and proxy statements and
responding to regulatory inquiries); and performing other Fund administrative
tasks necessary for the operation of the respective Fund (such as tax reporting
and fulfilling regulatory filing requirements). In addition, in evaluating the
administrative services, the Trustees considered, in particular, NAM's policies
and procedures for assuring compliance with applicable laws and regulations in
light of the new SEC regulations governing compliance. The Trustees noted NAM's
focus on compliance and its compliance systems. In their review, the Trustees
considered, among other things, the additions of experienced personnel to NAM's
compliance group and modifications and other enhancements to NAM's computer
systems. In addition to the foregoing, the Trustees also noted that NAM
outsources certain services that cannot be replicated without significant costs
or at the same level of expertise. Such outsourcing has been a beneficial and
efficient use of resources by keeping expenses low while obtaining quality
services.
In addition to the above, in reviewing the variety of additional services that
NAM or its affiliates must provide to closed-end funds, such as the Funds, the
independent Trustees determined that Nuveen's commitment to supporting the
secondary market for the common shares of its closed-end funds is particularly
noteworthy. In this regard, the Trustees noted Nuveen's efforts to sponsor
numerous forums for analysts and specialists regarding the various Nuveen
closed-end funds, its creation of a new senior position dedicated to providing
secondary market support services and enhancing communications with investors
and analysts, and its advertising and media relations efforts designed to raise
investor and analyst awareness of the closed-end funds.
With respect to services provided to municipal funds, such as the Funds, the
Trustees also noted, among other things, the enhancements NAM implemented to its
municipal portfolio management processes (e.g., the increased use of benchmarks
to guide and assess the performance of its portfolio managers); the
implementation of a risk management program; and the various initiatives being
undertaken to enhance or modify NAM's computer systems as necessary to support
the innovations of the municipal investment team (such as, the ability to assess
certain historical data in order to create customized benchmarks, perform
attribution analysis and facilitate the use of derivatives as hedging
instruments). With respect to certain of the Funds with a less seasoned
portfolio, the Trustees also noted the hedging program implemented for such
Funds and the team responsible for developing, implementing and monitoring the
hedging procedures. The hedging program was designed to help maintain the
applicable Fund's duration within certain benchmarks.
Based on their review, the Trustees found that, overall, the nature, extent and
quality of services provided (and expected to be provided) to the Funds under
the Investment Management Agreements were of a high level and were quite
satisfactory.
B. THE INVESTMENT PERFORMANCE OF THE FUND AND ADVISER
As previously noted, the Board received a myriad of performance information
regarding each Fund and its Peer Group, if available. Among other things, the
Board received materials reflecting a Fund's historic performance, the Fund's
performance compared to its Peer Group and, if available, its performance
compared to recognized and, in certain cases, customized benchmarks. Further, in
evaluating the performance information, in certain limited instances, the
Trustees noted that the closest Peer Group for a Fund still would not adequately
reflect such Fund's investment objectives and strategies, thereby limiting the
usefulness of the comparisons of such Fund's performance with that of the Peer
Group.
For state municipal funds, such as the Funds, the performance data included,
among other things, the respective Fund's performance relative to its peers.
More specifically, a Fund's one-, three- and five-year total returns (as
available) for the periods ending December 31, 2004 were evaluated relative to
the unaffiliated funds in its respective Peer Group (including the returns of
individual peers as well as the Peer Group average) as well as additional
performance information with respect to all the funds in the Peer Group, subject
to the following. Certain state municipal Funds do not have a corresponding Peer
Group in which case their performance is measured against a state-specific
municipal index compiled by an independent third party. Such indices measure
bond performance rather than fund performance. The closed-end Funds that utilize
such indices are from Connecticut, Georgia, Maryland, Missouri, North Carolina,
Texas and Virginia. Based on their review, the Trustees determined that each
Fund's absolute and relative investment performance over time had been
satisfactory.
C. FEES, EXPENSES AND PROFITABILITY
1. FEES AND EXPENSES
In evaluating the management fees and expenses that a Fund is expected to
bear, the Trustees considered the Fund's current management fee structure
and the Fund's expected expense ratios in absolute terms as well as
compared with the fees and expense ratios of the unaffiliated funds in its
Peer Group. The Trustees reviewed the financial information of NAM,
including its respective revenues, expenses and profitability. In reviewing
fees, the Trustees, among other things, reviewed comparisons of the Fund's
gross management fees (fees after fund-level and complex-wide level
breakpoints but before reimbursements and fee waivers), net management fees
(after breakpoints and reimbursements and fee waivers) and total expense
ratios (before and after waivers) with those of the unaffiliated funds in
the Peer Group and peer averages. In this regard, the Trustees noted that
the relative ranking of the Nuveen Funds on fees and expenses was aided by
the significant level of fee reductions provided by the fund-level and
complex-wide breakpoint schedules, and the fee waivers and reimbursements
provided by Nuveen for certain Funds launched since 1999. The complex-wide
breakpoint schedule was instituted in 2004 and is described in further
detail below in Section D entitled "Economies of Scale and Whether Fee
Levels Reflect these Economies of Scale." In their review of the fee and
expense information provided, including, in particular, the expense ratios
of the unaffiliated funds in the respective Peer Group, the Trustees
determined that each Fund's net total expense ratio was within an
acceptable range compared to such peers.
67
ANNUAL INVESTMENT MANAGEMENT
AGREEMENT APPROVAL PROCESS (continued)
2. COMPARISONS WITH THE FEES OF OTHER CLIENTS
The Trustees further compared the fees of NAM to the fees NAM assessed for
other types of clients investing in municipal funds (such as municipal
managed accounts). With respect to such separately managed accounts, the
advisory fees for such accounts are generally lower than those charged to
the comparable Fund. The Trustees noted, however, the additional services
that are provided and the costs incurred by Nuveen in managing and
operating registered investment companies, such as the Funds, compared to
individually managed separate accounts. For instance, as described above,
NAM and its affiliates provide numerous services to the Funds including,
but not limited to, preparing shareholder reports; providing daily
accounting; preparing quarterly financial statements; overseeing and
coordinating the activities of other service providers; administering and
organizing Board meetings and preparing the Board materials for such
meetings; providing legal support; and administering all other aspects of
the Fund's operations. Further, the Trustees noted the increased compliance
requirements for funds in light of new SEC regulations and other
legislation. These services are generally not required to the same extent,
if at all, for separate accounts. In addition to the differences in
services, the Trustees also considered, among other things, the differences
in product distribution, investment policies, investor profiles and account
sizes. Accordingly, the Trustees believe that the nature and number of
services provided to operate a Fund merit the higher fees than those to
separate managed accounts.
3. PROFITABILITY OF ADVISER
In conjunction with its review of fees, the Trustees also considered NAM's
profitability. The Trustees reviewed NAM's revenues, expenses and
profitability margins (on both a pre-tax and after-tax basis). In reviewing
profitability, the Trustees recognized that one of the most difficult
issues in determining profitability is establishing a method of allocating
expenses. Accordingly, the Trustees reviewed NAM's assumptions and
methodology of allocating expenses. In this regard, the methods of
allocation used appeared reasonable but the Board noted the inherent
limitations in allocating costs among various advisory products. The
Trustees also recognized that individual fund or product line profitability
of other advisers is generally not publicly available. Further,
profitability may be affected by numerous factors including the types of
funds managed, expense allocations, business mix, etc. and therefore
comparability of profitability is somewhat limited. Nevertheless, to the
extent available, the Trustees considered NAM's profit margin compared to
the profitability of various publicly-traded investment management
companies and/or investment management companies that publicly disclose
some or all of their financial results compiled by three independent
third-party service providers. The Trustees also reviewed the revenues,
expenses and profit margins of various unaffiliated advisory firms with
similar amounts of assets under management for the last year prepared by
NAM. Based on their review, the Trustees were satisfied that NAM's level of
profitability from its relationship with each Fund was reasonable in light
of the services provided.
In evaluating the reasonableness of the compensation, the Trustees also
considered any other revenues paid to NAM as well as any indirect benefits
(such as soft dollar arrangements, if any) NAM and its affiliates are
expected to receive that are directly attributable to their management of
the Funds, if any. See Section E below for additional information. Based on
their review of the overall fee arrangements of the applicable Fund, the
Trustees determined that the advisory fees and expenses of the respective
Fund were reasonable.
D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE
In reviewing the compensation, the Trustees have long understood the benefits of
economies of scale as the assets of a fund grow and have sought to ensure that
shareholders share in these benefits. One method for shareholders to share in
economies of scale is to include breakpoints in the advisory fee schedules that
reduce fees as fund assets grow. Accordingly, the Trustees received and reviewed
the schedules of advisory fees for each Fund, including fund-level breakpoints
thereto. In addition, after lengthy negotiations with management, the Board in
May 2004 approved a complex-wide fee arrangement pursuant to which fees of the
funds in the Nuveen complex, including the Funds, are reduced as the assets in
the fund complex reach certain levels. The complex-wide fee arrangement was
introduced on August 1, 2004 and the Trustees reviewed data regarding the
reductions of fees for the Funds for the period of August 1, 2004 to December
31, 2004. In evaluating the complex-wide fee arrangement, the Trustees
considered, among other things, the historic and expected fee savings to
shareholders as assets grow, the amount of fee reductions at various asset
levels, and that the arrangement would extend to all Funds in the Nuveen
complex. The Trustees also considered the impact, if any, the complex-wide fee
arrangement may have on the level of services provided. Based on their review,
the Trustees concluded that the breakpoint schedule and complex-wide fee
arrangement currently was acceptable and desirable in providing benefits from
economies of scale to shareholders.
68
E. INDIRECT BENEFITS
In evaluating fees, the Trustees also considered any indirect benefits or
profits NAM or its affiliates may receive as a result of its relationship with
each Fund. In this regard, the Trustees considered any benefits from soft dollar
arrangements. The Trustees noted that although NAM manages a large amount of
assets, it has very little, if any, brokerage to allocate. This is due to the
fact that NAM typically manages the portfolios of the municipal funds in the
Nuveen complex and municipal bonds generally trade on a principal basis.
Accordingly, NAM does not currently have any soft dollar arrangements and does
not pay excess brokerage commissions (or spreads on principal transactions) in
order to receive research services. In addition to soft dollar arrangements, the
Trustees also considered any other revenues, if any, received by NAM or its
affiliates. With respect to Funds with outstanding preferred shares and new
Funds, the Trustees considered revenues received by Nuveen for serving as agent
for broker-dealers at its preferred trading desk and for acting as co-manager in
the initial public offering of new closed-end exchange-traded funds.
F. OTHER CONSIDERATIONS
Nuveen, until recently, was a majority-owned subsidiary of St. Paul Travelers
Companies, Inc. ("St. Paul"). As noted, St. Paul earlier this year announced its
intention to divest its equity stake in Nuveen. Nuveen is the parent of NAM.
Pursuant to a series of transactions, St. Paul had begun to reduce its interest
in Nuveen which would ultimately result in a change of control of Nuveen and
therefore NAM. As mandated by the 1940 Act, such a change in control would
result in an assignment of the advisory agreement with NAM and the automatic
termination of such agreement. Accordingly, the Board also considered for each
Fund the approval of a New Investment Management Agreement with each Fund in
light of, and which would take effect upon, the anticipated change of control.
More specifically, the Board considered for each Fund a New Investment
Management Agreement on substantially identical terms to the existing Investment
Management Agreement, to take effect after the change of control has occurred
and the contract has been approved by Fund shareholders. In its review, the
Board considered whether the various transactions necessary to divest St. Paul's
interest will have an impact on the various factors they considered in approving
NAM, such as the scope and quality of services to be provided following the
change of control. In reviewing the St. Paul transactions, the Board considered,
among other things, the impact, if any, on the operations and organizational
structure of NAM; the possible benefits and costs of the transactions to the
respective Fund; the potential implications of any arrangements used by Nuveen
to finance certain of the transactions; the ability of NAM to perform its duties
after the transactions; whether a Fund's fee structure or expense ratio would
change; any changes to the current practices of the respective Fund; any changes
to the terms of the advisory agreement; and any anticipated changes to the
operations of NAM. Based on its review, the Board determined that St. Paul's
divestiture would not affect the nature and quality of services provided by NAM,
the terms of the Investment Management Agreement, including the fees thereunder,
and would not materially affect the organization or operations of NAM.
Accordingly, the Board determined that their analysis of the various factors
regarding their approval of NAM would continue to apply after the change of
control.
G. APPROVAL
The Trustees did not identify any single factor discussed previously as
all-important or controlling. The Trustees, including a majority of independent
Trustees, concluded that the terms of the Investment Management Agreements were
fair and reasonable, that the respective Fund Adviser's fees are reasonable in
light of the services provided to each Fund, that the renewal of the NAM
Investment Management Agreements should be approved, and that the new,
post-change of control NAM Investment Management Agreements be approved and
recommended to shareholders.
69
Reinvest Automatically
EASILY AND CONVENIENTLY
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
the 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.
FLEXIBLE
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
70
Other Useful
INFORMATION
In April, 2005, The St. Paul Travelers Companies, Inc. ("St. Paul Travelers")
sold the majority of its controlling equity interest in Nuveen Investments, Inc.
("Nuveen") to the general public. Nuveen is the parent of Nuveen Asset
Management ("NAM"), which is each Fund's investment manager. This sale was
deemed to be an "assignment" of the investment management agreement between each
Fund and NAM and, if applicable, of the sub-advisory agreement between NAM and
the Fund's sub-adviser. As required by law, the shareholders of each Fund were
asked to approve a new investment management agreement and, if applicable, a new
subadvisory agreement that reflected this change in ownership. The shareholders
of each Fund voted this approval at a Shareholders' Meeting on July 26. 2005.
There were no changes to the investment objectives or management of any Fund as
a result of these actions.
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
Each Fund's (i) quarterly portfolio of investments, (ii) information regarding
how the Funds voted proxies relating to portfolio securities held during the
12-month period ended June 30, 2005, and (iii) a description of the policies and
procedures that the Funds used to determine how to vote proxies relating to
portfolio securities are available without charge, upon request, by calling
Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website at
www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities
and Exchange Commission ("SEC"). The SEC may charge a copying fee for this
information. Visit the SEC on-line at http://www.sec.gov or in person at the
SEC's Public Reference Room in Washington, D.C. Call the SEC at 1-202-942-8090
for room hours and operation. You may also request Fund information by sending
an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public
References Section at 450 Fifth Street NW, Washington, D.C. 20549.
CEO CERTIFICATION DISCLOSURE
Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange
the annual CEO certification as required by Section 303A.12(a) of the NYSE
Listed Company Manual. Each Fund has filed with the Securities and Exchange
Commission the certification of its Chief Executive Officer and Chief Financial
Officer required by Section 302 of the Sarbanes-Oxley Act.
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 that would have been necessary each year to equal the
investment's actual cumulative performance (including change in NAV or market
price and reinvested dividends and capital gains distributions, if any) over the
time period being considered.
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 the expected period over
which a bond's principal and interest will be paid, and consequently is a
measure of the sensitivity of a bond's or bond Fund's value to changes when
market interest rates change. Generally, the longer a bond's or Fund's duration,
the more the price of the bond or Fund will change as interest rates change.
Leverage-adjusted duration takes into account the leveraging process for a Fund
and therefore is longer than the duration of the Fund's portfolio of bonds.
MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An investment's
current annualized dividend divided by its current market price.
MODIFIED DURATION: Duration is a measure of the expected period over which a
bond's principal and interest will be paid and consequently is a measure of the
sensitivity of a bond's or bond Fund's value to changes when market interest
rates change. Generally, the longer a bond's or Fund's duration, the more the
price of the bond or Fund will change as interest rates change.
NET ASSET VALUE (NAV): A Fund's common share NAV per share is calculated by
subtracting the liabilities of the Fund (including any MuniPreferred shares
issued in order to leverage 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.
BOARD OF DIRECTORS
Robert P. Bremner
Lawrence H. Brown
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Eugene S. Sunshine
FUND MANAGER
Nuveen Asset Management
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
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
Chicago, IL
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 period covered by this report. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
71
Nuveen Investments:
SERVING Investors
For GENERATIONS
Photo of: 2 women looking at a photo album.
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
WE OFFER MANY DIFFERENT INVESTING SOLUTIONS FOR OUR CLIENTS'
DIFFERENT NEEDS.
Managing more than $120 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 fixed-income 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.
FIND OUT HOW WE CAN HELP YOU REACH YOUR FINANCIAL GOALS.
To learn more about the products and services Nuveen Investments offers, talk to
your financial advisor, or call us at (800) 257-8787. Please read the
information provided carefully before you invest.
Be sure to obtain a prospectus, where applicable. Investors should consider the
investment objective and policies, risk considerations, charges and expenses of
the Fund carefully before investing. The prospectus contains this and other
information relevant to an investment in the Fund. For a prospectus, please
contact your securities representative or Nuveen Investments, 333 W. Wacker Dr.,
Chicago, IL 60606. Please read the prospectus carefully before you invest or
send money.
o Share prices
o Fund details
Learn more o Daily financial news
about Nuveen Funds at o Investor education
WWW.NUVEEN.COM/ETF o Interactive planning tools
Logo: NUVEEN Investments
EAN-A-0805D
ITEM 2. CODE OF ETHICS.
As of the end of the period covered by this report, the registrant has adopted a
code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller, or
persons performing similar functions. There were no amendments to or waivers
from the Code during the period covered by this report. The registrant has
posted the code of ethics on its website at www.nuveen.com/etf. (To view the
code, click on the Investor Resources drop down menu box, click on Fund
Governance and then click on Code of Conduct.)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The registrant's Board of Directors or Trustees determined that the registrant
has at least one "audit committee financial expert" (as defined in Item 3 of
Form N-CSR) serving on its Audit Committee. The registrant's audit committee
financial expert is Jack B. Evans, Chairman of the Audit Committee, who is
"independent" for purposes of Item 3 of Form N-CSR.
Mr. Evans was formerly President and Chief Operating Officer of SCI Financial
Group, Inc., a full service registered broker-dealer and registered investment
adviser ("SCI"). As part of his role as President and Chief Operating Officer,
Mr. Evans actively supervised the Chief Financial Officer (the "CFO") and
actively supervised the CFO's preparation of financial statements and other
filings with various regulatory authorities. In such capacity, Mr. Evans was
actively involved in the preparation of SCI's financial statements and the
resolution of issues raised in connection therewith. Mr. Evans has also served
on the audit committee of various reporting companies. At such companies, Mr.
Evans was involved in the oversight of audits, audit plans, and the preparation
of financial statements. Mr. Evans also formerly chaired the audit committee of
the Federal Reserve Bank of Chicago.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Nuveen California Municipal Value Fund, Inc.
The following tables show the amount of fees that Ernst & Young LLP, the Fund's
auditor, billed to the Fund during the Fund's last two full fiscal years. For
engagements with Ernst & Young LLP entered into on or after May 6, 2003, the
Audit Committee approved in advance all audit services and non-audit services
that Ernst & Young LLP provided to the Fund, except for those non-audit services
that were subject to the pre-approval exception under Rule 2-01 of Regulation
S-X (the "pre-approval exception"). The pre-approval exception for services
provided directly to the Fund waives the pre-approval requirement for services
other than audit, review or attest services if: (A) the aggregate amount of all
such services provided constitutes no more than 5% of the total amount of
revenues paid by the Fund to its accountant during the fiscal year in which the
services are provided; (B) the Fund did not recognize the services as non-audit
services at the time of the engagement; and (C) the services are promptly
brought to the Audit Committee's attention, and the Committee (or its delegate)
approves the services before the audit is completed.
The Audit Committee has delegated certain pre-approval responsibilities to its
Chairman (or, in his absence, any other member of the Audit Committee).
SERVICES THAT THE FUND'S AUDITOR BILLED TO THE FUND
AUDIT FEES BILLED AUDIT-RELATED FEES TAX FEES ALL OTHER FEES
FISCAL YEAR ENDED TO FUND BILLED TO FUND BILLED TO FUND BILLED TO FUND
------------------------------------------------------------------------------------------------------------------------------------
August 31, 2005 $ 11,682 $ 0 $ 429 $ 0
------------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------------------------
August 31, 2004 $ 11,096 $ 0 $ 405 $ 0
------------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------------------------
The above "Tax Fees" were billed for professional services for tax advice, tax
compliance, and tax planning.
SERVICES THAT THE FUND'S AUDITOR BILLED TO THE
ADVISER AND AFFILIATED FUND SERVICE PROVIDERS
The following tables show the amount of fees billed by Ernst & Young LLP to
Nuveen Asset Management ("NAM" or the "Adviser"), and any entity controlling,
controlled by or under common control with NAM ("Control Affiliate") that
provides ongoing services to the Fund ("Affiliated Fund Service Provider"), for
engagements directly related to the Fund's operations and financial reporting,
during the Fund's last two full fiscal years.
The tables also show the percentage of fees subject to the pre-approval
exception. The pre-approval exception for services provided to the Adviser and
any Affiliated Fund Service Provider (other than audit, review or attest
services) waives the pre-approval requirement if: (A) the aggregate amount of
all such services provided constitutes no more than 5% of the total amount of
revenues paid to Ernst & Young LLP by the Fund, the Adviser and Affiliated Fund
Service Providers during the fiscal year in which the services are provided that
would have to be pre-approved by the Audit Committee; (B) the Fund did not
recognize the services as non-audit services at the time of the engagement; and
(C) the services are promptly brought to the Audit Committee's attention, and
the Committee (or its delegate) approves the services before the Fund's audit is
completed.
FISCAL YEAR ENDED AUDIT-RELATED FEES TAX FEES BILLED TO ALL OTHER FEES
BILLED TO ADVISER AND ADVISER AND BILLED TO ADVISER
AFFILIATED FUND AFFILIATED FUND AND AFFILIATED FUND
SERVICE PROVIDERS SERVICE PROVIDERS SERVICE PROVIDERS
---------------------------------------------------------------------------------------------------------------------
August 31, 2005 $ 0 $ 282,575 $ 0
---------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
---------------------------------------------------------------------------------------------------------------------
August 31, 2004 $ 0 $ 0 $ 0
---------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
---------------------------------------------------------------------------------------------------------------------
The above "Tax Fees" are primarily fees billed to the Adviser for Fund tax
return preparation.
NON-AUDIT SERVICES
The following table shows the amount of fees that Ernst & Young LLP billed
during the Fund's last two full fiscal years for non-audit services. For
engagements entered into on or after May 6, 2003, the Audit Committee is
required to pre-approve non-audit services that Ernst & Young LLP provides to
the Adviser and any Affiliated Fund Service Provider, if the engagement related
directly to the Fund's operations and financial reporting (except for those
subject to the de minimis exception described above). The Audit Committee
requested and received information from Ernst & Young LLP about any non-audit
services that Ernst & Young LLP rendered during the Fund's last fiscal year to
the Adviser and any Affiliated Fund Service Provider. The Committee considered
this information in evaluating Ernst & Young LLP's independence.
FISCAL YEAR ENDED TOTAL NON-AUDIT FEES
BILLED TO ADVISER AND
AFFILIATED FUND SERVICE TOTAL NON-AUDIT FEES
PROVIDERS (ENGAGEMENTS BILLED TO ADVISER AND
RELATED DIRECTLY TO THE AFFILIATED FUND SERVICE
TOTAL NON-AUDIT FEES OPERATIONS AND FINANCIAL PROVIDERS (ALL OTHER
BILLED TO FUND REPORTING OF THE FUND) ENGAGEMENTS) TOTAL
------------------------------------------------------------------------------------------------------------------------------------
August 31, 2005 $ 429 $ 282,575 $ 0 $ 283,004
August 31, 2004 $ 405 $ 0 $ 0 $ 405
The above "Non-Audit Fees billed to Adviser" for 2005 include "Tax-Fees" billed
to Adviser in the amount of $282,575 from previous table.
Audit Committee Pre-Approval Policies and Procedures. Generally, the audit
committee must approve (i) all non-audit services to be performed for the Fund
by the Fund's independent accountants and (ii) all audit and non-audit services
to be performed by the Fund's independent accountants for the Affiliated Fund
Service Providers with respect to operations and financial reporting of the
Fund. Regarding tax and research projects conducted by the independent
accountants for the Fund and Affiliated Fund Service Providers (with respect to
operations and financial reports of the Fund) such engagements will be (i)
pre-approved by the audit committee if they are expected to be for amounts
greater than $10,000; (ii) reported to the audit committee chairman for his
verbal approval prior to engagement if they are expected to be for amounts under
$10,000 but greater than $5,000; and (iii) reported to the audit committee at
the next audit committee meeting if they are expected to be for an amount under
$5,000.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
The registrant's Board of Directors or Trustees has a separately designated
audit committee established in accordance with Section 3(a)(58)(A) of the
Securities Exchange Act of 1934, as amended (15 U.S.C. 78c(a)(58)(A)). The
members of the audit committee are Robert P. Bremner, Lawrence H. Brown, Jack B.
Evans, William J. Schneider and Eugene S. Sunshine.
ITEM 6. SCHEDULE OF INVESTMENTS.
See Portfolio of Investments in Item 1.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
In the rare event that a municipal issuer held by the Fund were to issue a proxy
or that the Fund were to receive a proxy issued by a cash management security,
the Adviser would either engage an independent third party to determine how the
proxy should be voted or vote the proxy with the consent, or based on the
instructions, of the Fund's Board of Directors or Trustees or its
representative. In the case of a conflict of interest, the proxy would be
submitted to the applicable Fund's Board to determine how the proxy should be
voted. A member of the Adviser's legal department would oversee the
administration of the voting, and ensure that records were maintained in
accordance with Rule 204-2(c)(2) under the Investment Advisers Act of 1940 (17
CFR 275.204-2(c)(2)), reports were filed with the SEC on Form N-PX, and the
results were provided to the Board of Directors or Trustees and made available
to shareholders as required by applicable rules.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable at this time.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrant's Board implemented after the registrant
last provided disclosure in response to this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")
(17 CFR 240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter
of the period covered by this report that has materially affected, or
is reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable
because the code is posted on registrant's website at www.nuveen.com/etf and
there were no amendments during the period covered by this report. (To view the
code, click on the Investor Resources drop down menu box, click on Fund
Governance and then Code of Conduct.)
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT
Attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons. Not applicable.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR
270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference. Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen California Municipal Value Fund, Inc.
-----------------------------------------------------------
By (Signature and Title)* /s/ Jessica R. Droeger
----------------------------------------------
Jessica R. Droeger
Vice President and Secretary
Date: November 8, 2005
-------------------------------------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Gifford R. Zimmerman
----------------------------------------------
Gifford R. Zimmerman
Chief Administrative Officer
(principal executive officer)
Date: November 8, 2005
-------------------------------------------------------------------
By (Signature and Title)* /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: November 8, 2005
-------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.