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, 2006
------------------
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, 2006
Nuveen Investments
Municipal Closed-End 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
Photo of: Woman and man at the beach.
Photo of: A child.
DEPENDABLE, TAX-FREE INCOME BECAUSE IT'S NOT WHAT YOU EARN, IT'S WHAT YOU
KEEP.(R)
Logo: NUVEEN Investments
Photo of: Woman
Photo of: Woman
Photo of: Man and child
NOW YOU CAN RECEIVE YOUR NUVEEN FUND REPORTS FASTER.
NO MORE WAITING.
SIGN UP TODAY TO RECEIVE NUVEEN FUND INFORMATION BY E-MAIL.
It only takes a minute to sign up for E-Reports. Once enrolled, you'll receive
an e-mail as soon as your Nuveen Investments Fund information is ready -- no
more waiting for delivery by regular mail. Just click on the link within the
e-mail to see the report, and save it on your computer if you wish.
----------------------------
DELIVERY DIRECT TO
YOUR E-MAIL INBOX
----------------------------
IT'S FAST, EASY & FREE:
WWW.INVESTORDELIVERY.COM
if you get your Nuveen Fund dividends
and statements from your financial
advisor or brokerage account.
OR
WWW.NUVEEN.COM/ACCOUNTACCESS
if you get your Nuveen Fund dividends
and statements directly from Nuveen.
(Be sure to have the address sheet that accompanied this report handy. You'll
need it to complete the enrollment process.)
Logo: NUVEEN Investments
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 twelve-month period
covered by this report your Fund continued to provide you with attractive
monthly tax-free income. For more details about the management strategy and
performance of your Fund, please read the Portfolio Manager's Comments, the
Dividend and Share Price Information, and the Performance Overview sections
of this report.
For some time, I've used these letters to remind you that municipal bonds
can be an important building block in a well balanced investment portfolio.
In addition to providing attractive tax-free monthly income, a municipal
bond investment like your Fund may help you achieve and benefit from
greater portfolio diversification. Portfolio diversification is a
recognized way to try to reduce some of the risk that comes with investing.
For more information about this important investment strategy, I encourage
you to contact your personal financial advisor.
"IN ADDITION TO PROVIDING ATTRACTIVE TAX-FREE MONTHLY INCOME, A MUNICIPAL BOND
INVESTMENT LIKE YOUR FUND MAY HELP YOU ACHIEVE AND BENEFIT FROM GREATER
PORTFOLIO DIVERSIFICATION."
We also are pleased to be able to offer you a choice concerning how you
receive your shareholder reports and other Fund information. As an
alternative to mailed copies, you can sign up to receive future Fund
reports and other Fund information by e-mail and the Internet. The inside
front cover of this report contains information on how you can sign up.
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. 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.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
October 16, 2006
Nuveen Investments California Municipal Closed-End Funds
(NCA, NCP, NCO, NQC, NVC, NUC)
Portfolio Manager's
COMMENTS
Portfolio manager Scott Romans reviews economic and municipal market conditions
at both the national and state levels, key investment strategies and the annual
performance of these California Funds. Scott, who joined Nuveen Investments 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, 2006?
During this reporting period, we saw increases in interest rates across
virtually the entire yield curve, resulting in a general decline in bond prices.
Through much of the period, however, rates at the longer end of the curve
remained more stable than those at the short end. Between September 1, 2005 and
August 31, 2006, the Federal Reserve announced increases in the fed funds rate
at seven of its eight Open Market Committee meetings leaving the rate unchanged
at the August 8, 2006 session. These seven 0.25% increases raised the short-term
target by 175 basis points, from 3.50% to 5.25%, its highest level since March
2001. By comparison, the yield on the benchmark 10-year U.S. Treasury note rose
71 basis points during this period to end August 2006 at 4.73%. As short-term
rates approached the levels of long-term rates, the yield curve flattened and
then inverted.
In the municipal market, the yield on the Bond Buyer 25 Revenue Bond Index, a
widely followed measure of longer-term municipal market rates, stood at 4.91% at
the end of August 2006, an increase of just four basis points from the end of
August 2005.
Despite rising interest rates, elevated energy prices, and a softening housing
market, the overall economy remained relatively resilient. After expanding at a
rate of 4.2% in the third quarter of 2005, the U.S. gross domestic product (GDP)
growth rate slowed to 1.8% in the fourth quarter of 2005, then rebounded sharply
to 5.6% in the first quarter of 2006 (all GDP numbers are annualized). In the
second quarter of 2006, GDP growth moderated to 2.6%, with the deceleration
reflecting a decline in federal spending as well as a major downturn in
residential investment. In general, the jobs picture remained positive, with
national unemployment at 4.7% in August 2006, down from 4.9% in August 2005.
However, the markets continued to keep a close eye on inflation trends, as the
4
year-over-year increase in the Consumer Price Index registered 3.8% in August
2006. During the first eight months of 2006, the increase in inflation was
driven mainly by higher energy and transportation costs, rising at a rate of
4.6% annualized, compared with 3.4% for all of 2005.
Over the 12 months ended August 2006, municipal bond issuance nationwide totaled
$368.2 billion, down 7% from the previous 12 months. This total reflected the
general decrease in the supply of municipal paper during 2006. After reaching
record levels in calendar year 2005, municipal supply declined during the first
eight months of 2006, with $235.5 billion in new securities coming to market,
off 15% from the same period in 2005. A major factor in 2006's drop-off was the
sharp reduction in pre-refunded volume, which fell more than 56% from last
year's levels, as rising interest rates made advance refundings less
economically attractive. Overall, demand for municipal bonds, especially those
offering higher yields, continued to be strong and broad-based, with retail
investors, property and casualty insurance companies, and hedge funds all
participating in the market.
HOW WERE THE ECONOMIC AND MARKET ENVIRONMENTS IN CALIFORNIA DURING THIS PERIOD?
California ranked as the 15th fastest growing state economy in the nation in
2005, led by the leisure and hospitality sector, professional and business
services, and construction. California's $1.6 trillion economy remained diverse,
with international trade, technology, financial services, and defense serving as
additional key drivers. Over the past six months, the state's ports benefited
from the nearly 10% growth in Asian trade, while Mexico remained California's
largest international trading partner. In August 2006, California's unemployment
rate was 4.9%, down from 5.2% in August 2005. While approximately 20% of the
jobs created in California during the 12-month period were generated by the
construction industry, concerns about the disproportionate impact of a housing
slowdown on the California economy have not yet been realized. Population trends
in the state, with growth of more than 8% over the past five years, remained
positive.
5
Due to strong revenue growth resulting from economic expansion, California's
fiscal condition improved over the past 12 months, as personal income tax
receipts for fiscal 2006 surpassed the previous peak posted in 2001. The state's
general fund ended fiscal 2006 with an estimated balance of $6.5 billion, and
plans call for carrying forward the majority of these funds into fiscal 2007 to
offset a $3.7 billion deficit in the $125.6 billion fiscal 2007 budget and
prepay internal and external debt. Even with recent improvements, however,
California's budget remained structurally imbalanced, and deficits in excess of
$3 billion were forecast for fiscal 2008 and 2009. Citing the improved tax
revenue trends, both Moody's and Standard & Poor's upgraded California's general
obligation bonds to A1 and A+, respectively, from A2 and A in May 2006. For the
12 months ended August 31, 2006, municipal issuance in California totaled $51.0
billion, on par with issuance for the previous 12 months. During the first eight
months of 2006, however, California supply declined sharply, falling 20% from
that of January-August 2005, to $30.3 billion. California remained the largest
state issuer in the nation for both the 12-month and year-to-date periods. A
referendum authorizing the issuance of $37 billion of additional general
obligation debt, down from the original proposal of $68 billion, is scheduled to
appear on the state's November 2006 ballot. If passed, this referendum would
increase California's general fund-supported debt by 67%.
WHAT KEY STRATEGIES WERE USED TO MANAGE THE CALIFORNIA FUNDS DURING THIS
REPORTING PERIOD?
As short term interest rates rose and the municipal bond yield curve flattened
during this 12-month period, we continued to emphasize a disciplined approach to
duration1 management and yield curve positioning. Over this period, two factors
caused the durations of the majority of these California Funds to shorten more
quickly relative to the general market. First, with the flattening of the curve,
we saw a major acceleration in advance refunding2 activity during the first half
of this period. While these pre-refundings benefited the Funds' performance in
the short-term, they also had a shortening effect on the Funds' durations. The
second factor was the natural tendency of a bond's duration to shorten as time
passes. During the second half of this period, we took a proactive
1 Duration is a measure of a bond's price sensitivity as interest rates
change, with longer duration bonds displaying more sensitivity to these
changes than bonds with shorter durations.
2 Advance refundings, also known as pre-refundings or refinancings, occur
when an issuer sells new bonds and uses the proceeds to fund principal and
interest payments of older, existing bonds. This process often results in
lower borrowing costs for bond issuers.
6
approach to mitigating some of the potential risk associated with these changes
in duration. (A fund's price performance can also be hampered if the fund's
duration is too short during a period when the market rallies.)
Because interest rates at the longer end of the yield curve remained relatively
low over this period, we believed the most prudent approach to maintaining the
Funds' durations within our preferred strategic range was the use of forward
interest rate swaps, a type of derivative financial instrument. As discussed in
previous shareholder reports, we began using these swaps strategies in late 2004
in an effort to control interest rate risk, that is, to reduce the impact of
movements in interest rates on the value of the Funds investments. The swaps are
not an attempt to profit from correctly predicting the timing and direction of
interest rate movements. Instead, our sole objective is to manage the durations
of these Funds without having a negative impact on their income streams or
common share dividends over the short term. In line with this objective, we
placed swaps on NCA, NCP, NQC, NVC, and NUC in July 2006. (NCO did not use swaps
during this period because we believed its duration was adequately positioned.)
This strategy also enhanced our management of the Funds' yield curve
positioning. Because of the low, longer-term interest rate environment over the
past few years that, as noted, made advance refundings more attractive, the
potential call exposure for bonds in these Funds had become unevenly distributed
along the yield curve. Forward interest rate swaps provided a way to smooth out
these distributions and neutralize the Funds' over or under exposure to certain
parts of the yield curve.
Overall, portfolio turnover was relatively light during much of this period,
because the rate environment was not advantageous for active trading. In
addition, as previously mentioned, issuance in California declined sharply
during the first eight months of 2006. In watching the market for potential new
additions for our portfolios, we focused mainly on attractively priced, premium
coupon3 bonds maturing in 15 to 25 years. Overall, we believed that bonds in
this part of the yield curve offered strong performance potential,
3 Premium coupon bonds are credits that, at the time of purchase, are trading
above their par values because their coupons are higher than the current
coupon levels of par bonds with similar durations Historically, these bonds
have held their value better than current coupon bonds when interest rates
rise.
7
better value, and attractive reward opportunities without excessive risk. Since
California is a relatively high-quality state, much of the new supply was highly
rated and/or insured, and the majority of our new purchases were higher-rated
credits. One of our major purchases during this period was A+ rated bonds issued
by the California Statewide Community Development Authority for the Kaiser
Permanente Hospital System, which we added to all of the Funds in this report.
We also continued to emphasize maintaining the Funds' weightings of
lower-quality bonds. However, we generally found fewer attractively structured
lower-rated credit opportunities in the California market, and we added very
little in the way of new positions at the lower end of the credit spectrum.
Overall, the California Funds continued to have good exposure to the lower-rated
credit categories.
Given market concerns about oil prices, inflation and the actions of the Federal
Reserve over the past 12 months, we did see some volatility in longer term
yields over this period, with rates peaking in October 2005 and again in June
2006. These spikes in rates provided us with opportunities to sell a few of our
holdings that were purchased when yields were lower and replace them with
similar, newer credits with comparatively higher yields. This allowed us to
maintain much of the Funds' current favorable portfolio characteristics while
strengthening their future income streams. We also sold some of our holdings of
State of California general obligation (G.O.) bonds when we believed that
current prices made these bonds attractive sales candidates.
HOW DID THE FUNDS PERFORM?
Individual results for these Nuveen California Funds, as well as relevant index
and peer group information, are presented in the accompanying table.
8
TOTAL RETURNS ON NET ASSET VALUE*
For periods ended 8/31/06
1-YEAR 5-YEAR 10-YEAR
--------------------------------------------------------------------------------
NCA4 3.34% 4.99% 5.69%
--------------------------------------------------------------------------------
NCP 2.97% 6.54% 6.62%
--------------------------------------------------------------------------------
NCO 2.47% 6.68% 6.59%
--------------------------------------------------------------------------------
NQC 3.21% 6.02% 6.53%
--------------------------------------------------------------------------------
NVC 3.21% 6.61% 6.94%
--------------------------------------------------------------------------------
NUC 2.96% 6.07% 6.86%
--------------------------------------------------------------------------------
Lehman Brothers
CA Tax-Exempt
Bond Index5 3.32% 5.02% 6.13%
--------------------------------------------------------------------------------
Lipper CA Municipal Debt
Funds Average6 4.10% 6.27% 6.66%
--------------------------------------------------------------------------------
*Annualized.
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, 2006, the total return on net asset value
(NAV) for NCA, NQC and NVC performed in-line with the return on the Lehman
Brothers California Tax-Exempt Bond Index, and the performance of NCP, NCO, and
NUC trailed the index return. The returns on all of the Funds in this report
underperformed the average return for the Lipper California peer group.
Factors that influenced the Funds' returns during this period included yield
curve positioning and duration management, allocations to lower-rated credits,
the use of financial leverage, and pre-refunding activity. The implementation of
hedges in NCA, NCP, NQC, NVC and NUC also was a positive contributor to the
performances of these five Funds.
As the yield curve continued to flatten over the course of this period, bonds
with effective maturities between two and six years were the most adversely
impacted, generally underperforming long-intermediate bonds (those with
maturities between 17 and 22 years) and longer bonds (those with maturities of
at least 22 years). Yield curve positioning or, more specifically, greater
exposure to those parts of the yield curve that performed well helped the
performances of these Funds during this period.
4 NCA is an unleveraged Fund; the remaining five Funds in this report and
almost all of the funds in the Lipper Peer Group are leveraged.
5 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.
6 The Lipper California Municipal Debt Funds category average is calculated
using the returns of all closed-end funds in this category for each period
as follows: 1 year, 26 funds; 5 years, 15 funds; and 10 years, 13 funds.
Fund and Lipper returns assume reinvestment of dividends.
9
With bonds rated BBB or lower and non-rated bonds generally outperforming other
credit quality sectors during this period, all of these Funds benefited from
their investments in lower-quality credits. The performance of this sector was
largely the result of investor demand for the higher yields typically associated
with lower-quality bonds, which drove up their value. In particular, NCA, which
had allocated 26% of its portfolio to bonds rated BBB or lower and non-rated
bonds as of August 31, 2006 benefited from this situation. In the other five
California Funds, BBB and non-rated bonds accounted for 7% of NVC's portfolio,
9% of NCP and NCO, 11% of NUC and NQC. Among the lower-rated holdings making
positive contributions to the Funds' total returns for this period were
industrial development bonds and healthcare (including hospitals) credits, which
ranked as the top performing revenue sectors in the Lehman Brothers municipal
index, as well as bonds backed by the 1998 master tobacco settlement agreement,
which comprised between 1% and 4% of the portfolios of these six Funds as of
August 31, 2006.
Another factor affecting the annual performance of these Funds relative to that
of the unleveraged Lehman Brothers California Tax-Exempt Bond Index was the use
of financial leverage. The returns of NCP, NCO, NQC, NVC, and NUC were all
affected negatively during this period due to their use of leverage. (NCA is not
leveraged.) The use of leverage often provides opportunities for additional
income and total return for the common shareholders, but it also can expose
shareholders to additional risk. For example, as intermediate-term and
longer-term bond prices declined or remained relatively stable over this period,
the impact of these valuation changes within the Funds' portfolios was magnified
by the use of leverage. The impact was much less in NCA, and this accounted for
some of the performance differential between NCA and the other five Funds. While
the value provided by leverage was limited over this reporting period, we firmly
believe that the use of this strategy should work to the benefit of the
leveraged Funds over time. This can be seen in the five-year and ten-year return
performance--both absolute and relative to the Lehman Brothers California
Tax-Exempt Bond Index--of the five leveraged Funds in this report.
10
As noted earlier, we also continued to see a number of advance refundings, which
benefit the Funds through price appreciation and enhanced credit quality. During
this reporting period, advance refundings ranged from 5% to 12% of these Funds'
portfolios.
While advance refundings generally enhanced performance for this 12-month
period, the rising interest rate environment meant that the Funds' holdings of
previously pre-refunded bonds tended to underperform the general municipal
market. NCO was the only one of these Funds that was not hedged during this
period, when hedging had a positive impact on performance.
HOW WERE THE FUNDS POSITIONED IN TERMS OF CREDIT QUALITY AND BOND CALLS AS OF
AUGUST 31, 2006?
We continued to believe that maintaining strong credit quality was an important
requirement. As of August 31, 2006, all of these Funds continued to offer
excellent credit quality, with allocations of bonds rated AAA/U.S. guaranteed
and AA ranging from 65% in NCA, 78% in NUC, to 79% in NQC, 80% in NVC, 81% in
NCP, and 83% in NCO.
As of August 31, 2006, potential call exposure for the period September 2006
through the end of 2008 ranged from 8% in NQC, 11% in NCP, 12% in NCO, 13% in
NCA, and 15% in NUC to 17% in NVC. The number of actual bond calls in all of
these Funds depends largely on future market interest rates.
11
Dividend and Share Price
INFORMATION
All of the Funds in this report except NCA use leverage to potentially enhance
opportunities for additional income for common shareholders. The benefits of
leveraging are tied in part to the short-term rates leveraged Funds pay their
MuniPreferred(R) shareholders. During periods of low short-term rates, these
Funds generally pay lower dividends to their MuniPreferred shareholders, which
can leave more earnings to support common share dividends. Conversely, when
short-term interest rates rise, as they did during this reporting period, the
Funds' borrowing costs also rise, reducing the extent of the benefits of
leveraging and impacting the Funds' income streams and total returns. The Funds'
income streams were also affected as the proceeds from older, higher-yielding
bonds that matured or were called were reinvested into bonds currently available
in the market, which generally offered lower yields. These factors resulted in
two monthly dividend reductions in NCO, NQC and NVC and three in NCP and NUC
over the 12-month period ended August 31, 2006. The dividend of NCA remained
stable throughout this reporting period.
Due to capital gains generated by normal portfolio activity, common shareholders
of the following Funds received capital gains and net ordinary income
distributions at the end of December 2005, as follows:
LONG-TERM CAPITAL GAINS ORDINARY INCOME
(PER SHARE) (PER SHARE)
--------------------------------------------------------------------------------
NCA $0.0530 $0.0049
--------------------------------------------------------------------------------
NQC $0.0535 $0.0066
--------------------------------------------------------------------------------
NVC $0.1167 $0.0006
--------------------------------------------------------------------------------
NUC $0.0307 --
--------------------------------------------------------------------------------
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
12
as dividends to shareholders. As of August 31, 2006, NCP, NCO, NQC, NVC, and NUC
had positive UNII balances for both financial statement and tax purposes, while
NCA had a negative UNII balance for financial statement purposes and a positive
UNII balance for tax purposes.
At the end of the reporting period, the Funds' share prices were trading at
premiums or discounts to their NAVs as shown in the accompanying chart:
8/31/06 12-MONTH AVERAGE
DISCOUNT PREMIUM/DISCOUNT
--------------------------------------------------------------------------------
NCA -4.64% - 4.49%
--------------------------------------------------------------------------------
NCP -7.06% - 6.84%
--------------------------------------------------------------------------------
NCO -1.98% - 3.14%
--------------------------------------------------------------------------------
NQC -5.49% - 5.08%
--------------------------------------------------------------------------------
NVC -1.55% - 2.62%
--------------------------------------------------------------------------------
NUC -2.05% - 2.71%
--------------------------------------------------------------------------------
13
Nuveen California Municipal Value Fund, Inc.
NCA
Performance
OVERVIEW As of August 31, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 61%
AA 4%
A 9%
BBB 17%
BB or Lower 1%
N/R 8%
Bar Chart:
2005-2006 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.
9/01/05 9.98
9.94
9.96
9.98
9.98
9.99
10.15
9.88
9.88
10.04
9.9
9.94
9.91
9.92
9.76
9.96
9.77
10.01
9.91
9.82
9.82
9.85
9.93
9.92
9.92
9.91
9.8
9.89
9.85
9.69
9.56
9.56
9.47
9.56
9.65
9.7
9.71
9.73
9.75
9.82
9.85
9.79
9.88
9.83
9.73
9.74
9.69
9.82
9.85
9.87
9.85
9.77
9.89
9.76
9.722
9.75
9.71
9.73
9.66
9.62
9.69
9.61
9.65
9.64
9.73
9.86
9.8
9.9
9.7
9.85
9.93
9.88
9.98
9.91
9.74
9.79
9.66
9.68
9.56
9.54
9.54
9.62
9.65
9.65
9.65
9.62
9.68
9.73
9.8
9.82
9.75
9.7
9.7
9.74
9.7
9.73
9.63
9.71
9.72
9.57
9.58
9.69
9.78
9.75
9.72
9.68
9.64
9.61
9.63
9.55
9.5
9.59
9.63
9.68
9.57
9.52
9.61
9.63
9.74
9.79
9.77
9.75
9.68
9.61
9.65
9.72
9.6
9.51
9.64
9.66
9.6799
9.66
9.64
9.67
9.67
9.76
9.77
9.77
9.71
9.76
9.72
9.84
9.74
9.85
9.78
9.75
9.76
9.82
9.73
9.78
9.67
9.62
9.59
9.55
9.43
9.44
9.41
9.51
9.51
9.48
9.54
9.55
9.49
9.53
9.46
9.54
9.54
9.59
9.62
9.55
9.6499
9.54
9.48
9.5499
9.59
9.5
9.43
9.44
9.38
9.4
9.46
9.5
9.47
9.34
9.36
9.33
9.35
9.4
9.48
9.52
9.56
9.53
9.5
9.48
9.46
9.46
9.45
9.35
9.35
9.44
9.48
9.4
9.36
9.41
9.46
9.42
9.35
9.39
9.42
9.36
9.43
9.48
9.4599
9.49
9.4
9.42
9.41
9.4
9.35
9.39
9.46
9.43
9.44
9.43
9.47
9.51
9.46
9.5
9.49
9.46
9.49
9.53
9.52
9.53
9.53
9.51
9.54
9.57
9.55
9.53
9.53
9.5355
9.5601
9.59
9.54
9.54
9.52
9.54
9.55
9.58
9.61
9.65
9.63
8/31/06 9.67
FUND SNAPSHOT
------------------------------------
Common Share Price $9.67
------------------------------------
Common Share
Net Asset Value $10.14
------------------------------------
Premium/(Discount) to NAV -4.64%
------------------------------------
Market Yield 4.78%
------------------------------------
Taxable-Equivalent Yield1 7.30%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $255,868
------------------------------------
Average Effective Maturity
on Securities (Years) 15.82
------------------------------------
Modified Duration 5.68
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 10/07/87)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 2.85% 3.34%
------------------------------------
5-Year 5.30% 4.99%
------------------------------------
10-Year 5.35% 5.69%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 28.3%
------------------------------------
U.S. Guaranteed 28.0%
------------------------------------
Tax Obligation/General 11.1%
------------------------------------
Health Care 7.7%
------------------------------------
Water and Sewer 5.5%
------------------------------------
Housing/Multifamily 5.2%
------------------------------------
Other 14.2%
------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34.5%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
2 The Fund paid shareholders capital gains and net ordinary income
distributions in December 2005 of $0.0579 per share.
14
Nuveen California Performance Plus Municipal Fund, Inc.
NCP
Performance
OVERVIEW As of August 31, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 69%
AA 12%
A 10%
BBB 7%
N/R 2%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Sep 0.0705
Oct 0.0705
Nov 0.0705
Dec 0.067
Jan 0.067
Feb 0.067
Mar 0.0635
Apr 0.0635
May 0.0635
Jun 0.0595
Jul 0.0595
Aug 0.0595
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
9/01/05 14.57
14.61
14.7
14.76
14.84
14.83
14.89
14.81
14.75
14.72
14.83
14.83
14.75
14.73
14.65
14.36
14.45
14.45
14.52
14.55
14.57
14.67
14.67
14.56
14.42
14.36
14.3
14.45
14.35
14.35
14.44
14.36
14.31
14.32
14.39
14.42
14.39
14.32
14.23
14.42
14.38
14.31
14.44
14.47
14.47
14.44
14.39
14.4
14.31
14.14
14.07
13.95
13.87
13.94
13.92
13.79
13.83
13.8301
13.88
13.92
14.04
14.12
14.11
14.06
14.05
14.1
14.16
14.11
14.12
14.12
14.02
13.84
13.7
13.77
13.8
13.8
13.68
13.87
13.9
13.81
13.92
13.98
13.99
14.03
14.03
14.01
14.13
14.24
14.25
14.42
14.44
14.34
14.28
14.3
14.35
14.4
14.4109
14.51
14.55
14.5
14.68
14.62
14.65
14.55
14.57
14.62
14.7
14.7199
14.58
14.74
14.82
14.89
14.81
14.45
14.35
14.32
14.35
14.39
14.47
14.42
14.39
14.5
14.53
14.61
14.66
14.66
14.4
14.53
14.39
14.4
14.43
14.51
14.41
14.3
14.33
14.4
14.44
14.44
14.36
14.39
14.45
14.401
14.34
14.47
14.47
14.4
14.36
14.27
14.39
14.42
14.35
14.41
14.28
14.14
14.11
13.93
13.94
14.07
14.15
14.22
14.28
14.22
14.27
14.39
14.43
14.47
14.47
14.48
14.38
14.38
14.55
14.59
14.59
14.7
14.64
14.56
14.5288
14.6399
14.5
14.42
14.33
14.4825
14.3
14.42
14.33
14.25
14.27
14.29
14.17
14.37
14.62
14.48
14.35
14.28
14.31
14.24
14.28
14.14
13.87
13.79
13.72
13.62
13.57
13.52
13.5
13.46
13.37
13.41
13.44
13.4
13.54
13.75
13.73
13.76
13.83
13.7601
13.83
13.76
13.75
13.61
13.61
13.82
13.75
13.73
13.81
13.93
13.94
13.89
13.91
13.85
13.9
14
14
14.1
14.15
13.97
13.95
14.06
14.06
13.93
13.92
13.95
14.1
14.15
14.19
14.15
14.16
14.14
14.19
14.17
14.2299
14.31
14.36
8/31/06 14.36
FUND SNAPSHOT
------------------------------------
Common Share Price $14.36
------------------------------------
Common Share
Net Asset Value $15.45
------------------------------------
Premium/(Discount) to NAV -7.06%
------------------------------------
Market Yield 4.97%
------------------------------------
Taxable-Equivalent Yield1 7.59%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $200,359
------------------------------------
Average Effective Maturity
on Securities (Years) 14.97
------------------------------------
Leverage-Adjusted Duration 9.05
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/15/89)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 4.42% 2.97%
------------------------------------
5-Year 4.62% 6.54%
------------------------------------
10-Year 5.56% 6.62%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Transportation 17.6%
------------------------------------
Tax Obligation/Limited 16.4%
------------------------------------
U.S. Guaranteed 16.2%
------------------------------------
Tax Obligation/General 14.7%
------------------------------------
Water and Sewer 11.4%
------------------------------------
Health Care 8.1%
------------------------------------
Utilities 6.5%
------------------------------------
Other 9.1%
------------------------------------
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.
15
Nuveen California Municipal Market Opportunity Fund, Inc.
NCO
Performance
OVERVIEW As of August 31, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 70%
AA 13%
A 8%
BBB 7%
N/R 2%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Sep 0.0725
Oct 0.0725
Nov 0.0725
Dec 0.0725
Jan 0.0725
Feb 0.0725
Mar 0.069
Apr 0.069
May 0.069
Jun 0.0665
Jul 0.0665
Aug 0.0665
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
9/01/05 15.73
15.76
15.75
15.81
15.76
15.9
15.86
15.74
15.57
15.43
15.36
15.34
15.39
15.46
15.39
15.25
15.17
15.03
15.19
15.25
15.25
15.2
15.1
15.15
15.14
15.14
15.16
15.16
15.08
15.09
15.08
14.95
14.68
14.57
14.56
14.58
14.54
14.61
14.45
14.56
14.52
14.67
14.71
14.74
14.79
14.65
14.76
14.76
14.76
14.75
14.611
14.56
14.55
14.52
14.52
14.41
14.41
14.49
14.47
14.52
14.52
14.54
14.55
14.42
14.42
14.36
14.42
14.35
14.37
14.32
14.25
14.18
14.13
14.18
14.18
14.17
14.14
14.29
14.37
14.37
14.39
14.4
14.55
14.65
14.65
14.79
14.97
15.3
15.41
15.39
15.53
15.62
15.56
15.7
15.55
15.5
15.65
15.74
15.51
15.3
15.21
15.22
15.19
15
15
14.91
14.82
14.84
14.86
14.9
14.92
15.05
15.12
15
15.16
15.26
15.33
15.35
15.6
15.54
15.58
15.63
15.74
15.9
15.9
15.88
15.91
15.7
15.51
15.55
15.46
15.48
15.55
15.49
15.5
15.57
15.6
15.47
15.7
15.6
15.6
15.5
15.28
15.25
15.22
15.16
15.17
15.2399
14.99
14.92
14.84
14.51
14.54
14.64
14.65
14.5
14.56
14.99
14.86
14.9
14.92
15.18
15.09
15.25
15.12
15.15
15.15
15.16
15.1
15.28
15.13
15.2
15.2
15.38
15.4
15.4
15.38
15.55
15.56
15.75
15.81
15.7
15.637
15.66
15.46
15.41
15.42
15.4
15.33
15.44
15.75
15.6
15.54
15.4
15.4
15.43
15.3
15.11
14.97
15
14.81
14.59
14.72
14.5
14.24
14.11
14.3
14.43
14.44
14.66
14.64
14.81
14.77
14.94
14.9
14.91
14.97
14.8501
14.9
14.85
14.94
14.73
15.02
14.91
14.91
15.15
15.15
15.05
15.15
15.15
15.16
15.21
15.15
15.25
15.24
15.5
15.4425
15.369
15.53
15.5
15.49
15.5
15.64
15.5
15.51
15.45
15.42
15.32
15.3
15.28
15.27
15.41
15.47
8/31/06 15.3601
FUND SNAPSHOT
------------------------------------
Common Share Price $15.36
------------------------------------
Common Share
Net Asset Value $15.67
------------------------------------
Premium/(Discount) to NAV -1.98%
------------------------------------
Market Yield 5.20%
------------------------------------
Taxable-Equivalent Yield1 7.94%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $127,792
------------------------------------
Average Effective Maturity
on Securities (Years) 17.12
------------------------------------
Leverage-Adjusted Duration 8.70
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 5/17/90)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 4.02% 2.47%
------------------------------------
5-Year 5.18% 6.68%
------------------------------------
10-Year 6.11% 6.59%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 22.6%
------------------------------------
Water and Sewer 16.3%
------------------------------------
Tax Obligation/General 15.0%
------------------------------------
Transportation 14.5%
------------------------------------
U.S. Guaranteed 13.1%
------------------------------------
Health Care 7.9%
------------------------------------
Education and Civic
Organizations 5.0%
------------------------------------
Other 5.6%
------------------------------------
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.
16
Nuveen California Investment Quality Municipal Fund, Inc.
NQC
Performance
OVERVIEW As of August 31, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 67%
AA 12%
A 10%
BBB 10%
N/R 1%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Sep 0.0695
Oct 0.0695
Nov 0.0695
Dec 0.0695
Jan 0.0695
Feb 0.0695
Mar 0.066
Apr 0.066
May 0.066
Jun 0.0615
Jul 0.0615
Aug 0.0615
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
9/01/05 15.17
15.1
15.15
15.17
15.3
15.31
15.33
15.18
15.29
15.2
15.1
14.94
15.12
14.99
14.98
14.85
14.95
14.96
14.96
14.96
14.97
14.98
14.97
15.03
14.99
14.95
14.96
15.05
14.92
14.7
14.64
14.48
14.33
14.34
14.44
14.43
14.53
14.45
14.4
14.41
14.43
14.38
14.45
14.48
14.39
14.39
14.4
14.41
14.3
14.32
14.14
14
13.93
13.93
13.94
13.89
13.9
13.98
13.89
13.9
13.96
14.07
14.08
13.98
13.97
13.98
13.99
13.92
13.99
14
13.97
13.87
13.88
13.95
13.95
13.91
13.97
13.97
13.93
13.92
13.9
13.98
14.1099
14.35
14.35
14.48
14.491
14.61
14.67
14.72
14.77
14.64
14.65
14.7
14.7
14.64
14.78
14.85
14.939
15
14.95
14.9401
15.19
15.24
15.3799
15.23
15.19
15.14
15.11
15.09
15.08
15.13
15.03
14.91
14.84
14.81
14.78
14.81
14.77
14.63
14.7
14.79
14.87
14.99
15.19
15.34
14.97
15.06
14.8801
14.85
14.8
14.97
14.75
14.86
14.9
14.94
14.91
14.86
14.89
14.95
15.09
15
15
15
14.99
15
14.87
15
14.88
15
15.01
14.99
15
15.1
14.95
14.87
14.75
14.72
14.85
14.75
14.87
14.75
14.7
14.67
14.64
14.6
14.6
14.66
14.6001
14.35
14.41
14.69
14.58
14.88
14.7
14.62
14.5
14.71
14.88
14.76
14.77
14.7701
14.76
14.79
14.77
14.83
14.7
14.78
14.7
14.9
14.76
14.75
14.85
14.85
14.84
14.75
14.85
14.6
14.34
14.2
14.1
14.05
14
13.9
14.02
13.93
13.92
13.8
13.77
13.87
13.9
14.06
14.12
14.02
14.02
14.23
14.19
14.22
14.15
14.11
13.96
13.92
13.96
13.92
13.92
14.05
13.96
14
14.1
14.13
14.19
14.24
14.23
14.17
14.3
14.25
14.28
14.24
14.3
14.21
14.23
14.34
14.32
14.3201
14.43
14.3
14.33
14.38
14.5
14.53
14.62
14.6525
14.64
8/31/06 14.63
FUND SNAPSHOT
------------------------------------
Common Share Price $14.63
------------------------------------
Common Share
Net Asset Value $15.48
------------------------------------
Premium/(Discount) to NAV -5.49%
------------------------------------
Market Yield 5.04%
------------------------------------
Taxable-Equivalent Yield1 7.69%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $210,242
------------------------------------
Average Effective Maturity
on Securities (Years) 15.36
------------------------------------
Leverage-Adjusted Duration 8.32
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/20/90)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 2.73% 3.21%
------------------------------------
5-Year 4.07% 6.02%
------------------------------------
10-Year 5.75% 6.53%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 21.5%
------------------------------------
Transportation 20.3%
------------------------------------
U.S. Guaranteed 15.5%
------------------------------------
Tax Obligation/General 10.7%
------------------------------------
Education and Civic
Organizations 10.7%
------------------------------------
Health Care 7.4%
------------------------------------
Water and Sewer 5.2%
------------------------------------
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.
2 The Fund paid shareholders capital gains and net ordinary income
distributions in December 2005 of $0.0601 per share.
17
Nuveen California Select Quality Municipal Fund, Inc.
NVC
Performance
OVERVIEW As of August 31, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 74%
AA 6%
A 13%
BBB 5%
N/R 2%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Sep 0.074
Oct 0.074
Nov 0.074
Dec 0.074
Jan 0.074
Feb 0.074
Mar 0.07
Apr 0.07
May 0.07
Jun 0.0665
Jul 0.0665
Aug 0.0665
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
9/01/05 15.68
15.74
15.8
15.62
15.62
15.65
15.65
15.57
15.62
15.57
15.43
15.5
15.42
15.43
15.35
15.28
15.39
15.18
15.23
15.27
15.26
15.35
15.28
15.23
15.19
15.14
15.08
14.97
14.84
14.63
14.65
14.55
14.4
14.41
14.4
14.48
14.45
14.43
14.38
14.49
14.35
14.4
14.47
14.51
14.62
14.57
14.67
14.6
14.54
14.32
14.24
14.25
14.21
14.31
14.32
14.3
14.36
14.41
14.35
14.43
14.54
14.5
14.51
14.55
14.65
14.67
14.9
14.9
14.92
14.95
15
14.7
14.77
14.77
14.7
14.76
14.64
14.51
14.53
14.5
14.63
14.55
14.79
15.05
15.05
15.15
15.29
15.34
15.35
15.41
15.53
15.46
15.45
15.5
15.35
15.27
15.39
15.52
15.7
15.69
15.76
15.65
15.7
15.56
15.58
15.5
15.46
15.38
15.47
15.42
15.43
15.69
15.54
15.45
15.51
15.45
15.45
15.45
15.37
15.3
15.24
15.42
15.36
15.38
15.48
15.63
15.43
15.46
15.5
15.45
15.43
15.5
15.45
15.47
15.43
15.42
15.28
15.25
15.2501
15.27
15.3
15.21
15.29
15.29
15.1
15.05
15.11
15.13
15.11
15.01
15.1
15.2
15.1
14.95
14.9
14.95
14.8
14.78
14.91
14.98
15
15.15
15.01
15.25
15.34
15.18
15.18
15.16
15.14
15.01
15.11
15.14
15.08
15.18
15.4
15.1
15.1899
15.34
15.27
15.09
15.12
15.21
15
14.92
14.97
15.1
15.1
15.02
15.15
15.24
15.2
15.2
15.1
15.2
15
14.97
15.07
14.74
14.56
14.5
14.56
14.48
14.35
14.35
14.25
14.22
14.26
14.21
14.27
14.37
14.57
14.69
14.63
14.63
14.67
14.69
14.61
14.62
14.55
14.56
14.37
14.4
14.55
14.5
14.61
14.63
14.51
14.66
14.79
14.77
14.89
14.98
14.92
15
15.03
15.06
14.9
14.95
15.1
15.1
14.9901
15.01
15
15.01
15
15.01
15.12
14.99
15.09
15.15
15.07
15.19
15.27
8/31/06 15.25
FUND SNAPSHOT
------------------------------------
Common Share Price $15.25
------------------------------------
Common Share
Net Asset Value $15.49
------------------------------------
Premium/(Discount) to NAV -1.55%
------------------------------------
Market Yield 5.23%
------------------------------------
Taxable-Equivalent Yield1 7.98%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $358,131
------------------------------------
Average Effective Maturity
on Securities (Years) 15.93
------------------------------------
Leverage-Adjusted Duration 8.57
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 5/22/91)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 3.63% 3.21%
------------------------------------
5-Year 5.76% 6.61%
------------------------------------
10-Year 6.55% 6.94%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
U.S. Guaranteed 23.2%
------------------------------------
Tax Obligation/Limited 21.9%
------------------------------------
Tax Obligation/General 13.6%
------------------------------------
Transportation 11.3%
------------------------------------
Utilities 9.5%
------------------------------------
Health Care 6.1%
------------------------------------
Other 14.4%
------------------------------------
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 paid shareholders capital gains and net ordinary income
distributions in December 2005 of $0.1173 per share.
18
Nuveen California Quality Income Municipal Fund, Inc.
NUC
Performance
OVERVIEW As of August 31, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 71%
AA 7%
A 11%
BBB 8%
N/R 3%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Sep 0.076
Oct 0.076
Nov 0.076
Dec 0.072
Jan 0.072
Feb 0.072
Mar 0.0685
Apr 0.0685
May 0.0685
Jun 0.065
Jul 0.065
Aug 0.065
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
9/01/05 15.76
15.76
15.88
15.95
15.9
15.98
15.94
16.04
15.97
15.73
15.76
15.8
15.7
15.79
15.57
15.28
15.35
15.26
15.37
15.39
15.4
15.36
15.35
15.27
15.28
15.28
15.22
15.28
15.15
14.9
14.96
15.01
14.96
15.02
14.95
14.96
14.97
14.88
14.8
14.93
14.98
15
15.11
15.1
15.31
15.32
15.29
15.31
15.33
15.05
14.93
14.73
14.62
14.69
14.72
14.63
14.68
14.67
14.6
14.6
14.68
14.66
14.5801
14.75
14.7
14.65
14.72
14.74
14.71
14.82
14.8
14.59
14.569
14.38
14.46
14.39
14.46
14.73
14.58
14.63
14.5801
14.63
14.67
14.81
14.81
14.99
15.1
15.1899
15.39
15.46
15.65
15.61
15.5
15.42
15.49
15.6
15.53
15.56
15.54
15.6
15.49
15.37
15.37
15.31
15.41
15.42
15.44
15.38
15.41
15.44
15.55
15.55
15.7
15.55
15.48
15.51
15.54
15.6
15.49
15.41
15.37
15.4
15.45
15.58
15.51
15.54
15.42
15.49
15.3
15.35
15.29
15.36
15.25
15.29
15.32
15.32
15.31
15.36
15.28
15.26
15.3
15.23
15.21
15.24
15.29
15.35
15.25
15.43
15.39
15.39
15.27
15.1
15.06
14.95
14.93
14.74
14.7
14.79
14.85
15.15
15.16
15.05
15.23
15.06
15.24
15.18
15.18
15.23
15.11
15.09
15.1
15.13
15.1101
15.2
15.21
15.08
15.2
15.21
15.14
15.04
15.09
15.13
14.93
14.89
14.96
14.88
14.87
14.84
14.9099
14.9
15
14.99
14.87
15
14.88
14.81
14.85
14.64
14.53
14.43
14.38
14.26
14.23
14.08
14.07
14.02
14.04
14.11
14.1
14.13
14.17
14.3219
14.44
14.44
14.5
14.39
14.42
14.36
14.4
14.51
14.44
14.48
14.59
14.51
14.73
14.9
14.75
14.9
14.95
14.9825
15.11
15.06
15.24
15.19
15.25
15.27
15.26
15.18
15.27
15.1
15.09
15.03
15.1
15.14
15.06
15.02
15.01
15.01
15.13
15.09
15.14
15.17
15.24
8/31/06 15.28
FUND SNAPSHOT
------------------------------------
Common Share Price $15.28
------------------------------------
Common Share
Net Asset Value $15.60
------------------------------------
Premium/(Discount) to NAV -2.05%
------------------------------------
Market Yield 5.10%
------------------------------------
Taxable-Equivalent Yield1 7.79%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $343,096
------------------------------------
Average Effective Maturity
on Securities (Years) 15.81
------------------------------------
Leverage-Adjusted Duration 8.62
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/20/91)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 2.90% 2.96%
------------------------------------
5-Year 5.20% 6.07%
------------------------------------
10-Year 6.74% 6.86%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
U.S. Guaranteed 24.8%
------------------------------------
Tax Obligation/Limited 19.9%
------------------------------------
Tax Obligation/General 14.1%
------------------------------------
Transportation 9.5%
------------------------------------
Education and Civic
Organizations 9.5%
------------------------------------
Utilities 5.3%
------------------------------------
Health Care 4.8%
------------------------------------
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 paid shareholders a capital gains distribution in December 2005 of
$0.0307 per share.
19
Report of
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
THE BOARDS 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. (the "Funds"), as of
August 31, 2006, 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, 2006, by correspondence with the custodian and
brokers. 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, 2006, the results of their operations for the
year then ended, the changes in their 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 in conformity with U.S. generally accepted accounting
principles.
/s/ Ernst & Young LLP
Chicago, Illinois
October 13, 2006
20
Nuveen California Municipal Value Fund, Inc. (NCA)
Portfolio of
INVESTMENTS August 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 1.3% (1.3% OF TOTAL INVESTMENTS)
$ 630 California County Tobacco Securitization Agency, Tobacco 6/15 at 100.00 BBB $ 612,587
Settlement Asset-Backed Bonds, Sonoma County Tobacco
Securitization Corporation, Series 2005, 4.250%, 6/01/21
2,500 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB 2,744,425
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.250%, 6/01/33
------------------------------------------------------------------------------------------------------------------------------------
3,130 Total Consumer Staples 3,357,012
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 0.8% (0.8% OF TOTAL INVESTMENTS)
140 California Educational Facilities Authority, Revenue Bonds, 10/35 at 100.00 A3 143,748
University of Redlands, Series 2005A, 5.000%, 10/01/35
California Educational Facilities Authority, Revenue Bonds,
University of the Pacific, Series 2006:
95 5.000%, 11/01/21 11/15 at 100.00 A2 100,616
125 5.000%, 11/01/25 11/15 at 100.00 A2 131,226
1,500 California Statewide Community Development Authority, 12/06 at 105.00 N/R 1,582,575
Certificates of Participation, San Diego Space and Science
Foundation, Series 1996, 7.500%, 12/01/26
------------------------------------------------------------------------------------------------------------------------------------
1,860 Total Education and Civic Organizations 1,958,165
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 7.6% (7.7% OF TOTAL INVESTMENTS)
825 Arcadia, California, Hospital Revenue Bonds, Methodist 11/06 at 100.00 BBB+ 826,551
Hospital of Southern California, Series 1992, 6.500%, 11/15/12
940 California Health Facilities Financing Authority, Revenue Bonds, 11/15 at 100.00 A3 964,064
Cedars-Sinai Medical Center, Series 2005, 5.000%, 11/15/34
4,380 California Statewide Community Development Authority, 3/16 at 100.00 A+ 4,483,806
Revenue Bonds, Kaiser Permanante System, Series 2006,
5.000%, 3/01/41
1,460 California Statewide Community Development Authority, Revenue 8/16 at 100.00 A+ 1,543,775
Bonds, Kaiser Permanente System, Series 2001C,
5.250%, 8/01/31
2,710 California Statewide Community Development Authority, No Opt. Call AAA 2,903,602
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 5,239,750
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+ 1,481,558
Hospital Association, Series 1997A, 5.300%, 12/01/08
1,730 West Contra Costa Healthcare District, California, Certificates 7/14 at 100.00 AAA 1,885,475
of Participation, Series 2004, 5.375%, 7/01/21 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
18,485 Total Health Care 19,328,581
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 5.2% (5.2% OF TOTAL INVESTMENTS)
3,350 ABAG Finance Authority for Non-Profit Corporations, California, No Opt. Call BBB 3,474,151
Multifamily Housing Revenue Refunding Bonds, United
Dominion/2000 Post Apartments, Series 2000B,
6.400%, 8/15/30 (Mandatory put 8/15/08) (Alternative
Minimum Tax)
2,550 California Statewide Community Development Authority, 7/09 at 102.00 N/R 2,659,013
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+ 5,092,100
Multifamily Housing Revenue Refunding Bonds, Archstone
Communities Trust, Archstone Pelican Point Apartments,
Series 1999H, 5.300%, 6/01/29 (Mandatory put 6/01/08)
475 Riverside County, California, Subordinate Lien Mobile Home 10/06 at 100.00 N/R 475,352
Park Revenue Bonds, Bravo Mobile Home Park Project,
Series 1999B, 6.500%, 3/20/29
21
Nuveen California Municipal Value Fund, Inc. (NCA) (continued)
Portfolio of INVESTMENTS August 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY (continued)
$ 1,440 San Dimas Housing Authority, California, Mobile Home Park 7/08 at 102.00 N/R $ 1,498,838
Revenue Bonds, Charter Oak Mobile Home Estates Acquisition
Project, Series 1998A, 5.700%, 7/01/28
------------------------------------------------------------------------------------------------------------------------------------
12,815 Total Housing/Multifamily 13,199,454
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.0% (0.0% OF TOTAL INVESTMENTS)
5 California Rural Home Mortgage Finance Authority, GNMA No Opt. Call Aaa 5,199
Collateralized Single Family Mortgage Revenue Bonds,
Series 1993A-2, 7.950%, 12/01/24 (Alternative Minimum Tax)
45 California Rural Home Mortgage Finance Authority, No Opt. Call AAA 45,809
Mortgage-Backed Securities Program Single Family Mortgage
Revenue Bonds, Series 1997D, 6.700%, 5/01/29 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
50 Total Housing/Single Family 51,008
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.7% (0.9% OF TOTAL INVESTMENTS)
1,000 California Municipal Finance Authority, Solid Waste Disposal No Opt. Call BBB 995,070
Revenue Bonds, Waste Management Inc., Series 2004,
4.100%, 9/01/14 (Mandatory put 9/01/09) (Alternative
Minimum Tax)
1,000 California Pollution Control Financing Authority, Solid Waste 1/16 at 102.00 BBB 1,030,500
Disposal Revenue Bonds, Waste Management Inc.,
Series 2002A, 5.000%, 1/01/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,000 Total Industrials 2,025,570
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 4.5% (4.5% 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 1,961,925
2,130 5.600%, 8/15/34 8/14 at 100.00 A 2,269,792
2,720 ABAG Finance Authority for Non-Profit Corporations, California, 10/07 at 102.00 BB+ 2,752,722
Certificates of Participation, American Baptist Homes of
the West, Series 1997A, 5.750%, 10/01/17
2,830 California Statewide Community Development Authority, 4/09 at 101.00 BBB 2,896,420
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- 1,557,150
Certificates of Participation, Air Force Village West,
Series 1999, 5.750%, 5/15/19
------------------------------------------------------------------------------------------------------------------------------------
11,030 Total Long-Term Care 11,438,009
------------------------------------------------------------------------------------------------------------------------------------
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+ 527,365
5,200 5.000%, 2/01/21 2/14 at 100.00 A+ 5,471,024
2,850 5.250%, 4/01/34 4/14 at 100.00 A+ 3,025,418
1,000 Fremont Unified School District, Alameda County, California, 8/12 at 101.00 AAA 1,063,040
General Obligation Bonds, Series 2002A, 5.000%, 8/01/21 -
FGIC Insured
3,200 Los Angeles Unified School District, California, General 7/13 at 100.00 AAA 3,383,616
Obligation Bonds, Series 2003A, 5.000%, 7/01/22 -
FSA Insured
1,500 Los Angeles Unified School District, California, General 7/16 at 100.00 AAA 1,601,385
Obligation Bonds, Series 2006F, 5.000%, 7/01/24 -
FGIC Insured
1,845 Oakland Unified School District, Alameda County, California, 8/08 at 101.00 AAA 1,911,568
General Obligation Bonds, Series 2001, 5.125%, 8/01/21 -
FSA Insured
2,000 Puerto Rico, General Obligation and Public Improvement Bonds, No Opt. Call AAA 2,308,180
Series 2001A, 5.500%, 7/01/20 - MBIA Insured
270 Roseville Joint Union High School District, Placer County, 8/15 at 100.00 AAA 285,814
California, General Obligation Bonds, Series 2006B,
5.000%, 8/01/27 - FGIC Insured
5,000 San Diego Unified School District, California, General 7/14 at 100.00 AAA 5,252,450
Obligation Bonds, Series 2004F, 5.000%, 7/01/29 -
FSA Insured
1,500 San Ramon Valley Unified School District, Contra Costa County, 8/13 at 100.00 AAA 1,582,665
California, General Obligation Bonds, Series 2003,
5.000%, 8/01/23 - FSA Insured
22
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 1,460 West Contra Costa Unified School District, Contra Costa County, 8/11 at 101.00 AAA $ 1,550,184
California, General Obligation Bonds, Series 2003B,
5.000%, 8/01/20 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
26,325 Total Tax Obligation/General 27,962,709
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 27.9% (28.3% 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 3,224,340
1,000 5.625%, 10/01/33 - RAAI Insured 10/13 at 100.00 AA 1,077,920
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 1,870,017
5,010 5.750%, 12/01/33 - FGIC Insured 12/13 at 100.00 AAA 5,546,770
2,400 Calexico Community Redevelopment Agency, California, 8/13 at 102.00 AAA 2,522,352
Tax Allocation Bonds, Merged Central Business and Residential
District Project, Series 2003C, 5.000%, 8/01/28 - AMBAC Insured
1,790 California, Economic Recovery Revenue Bonds, Series 2004A, 7/14 at 100.00 AA- 1,940,575
5.000%, 7/01/15
340 Capistrano Unified School District, Orange County, California, 9/15 at 100.00 AAA 360,342
Special Tax Bonds, Community Facilities District, Series 2005,
5.000%, 9/01/24 - FGIC Insured
2,800 Commerce Community Development Commission, California, 8/07 at 102.00 N/R 2,898,252
Subordinate Lien Tax Allocation Refunding Bonds,
Redevelopment Project 1, Series 1997B, 6.000%, 8/01/21
1,695 Duarte Redevelopment Agency, California, Tax Allocation 9/07 at 102.00 N/R 1,760,868
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 276,760
Tax Allocation Bonds, Series 2005A, 5.000%, 9/01/20 -
XLCA Insured
Irvine, California, Unified School District, Community Facilities
District Special Tax Bonds, Series 2006A:
160 5.000%, 9/01/26 9/06 at 103.00 N/R 161,442
375 5.125%, 9/01/36 9/06 at 103.00 N/R 379,095
2,500 Kern County Board of Education, California, Certificates of 6/16 at 100.00 AAA 2,624,800
Participation, Series 2006A, 5.000%, 6/01/31 - MBIA Insured
615 Los Angeles Community Redevelopment Agency, California, 9/15 at 100.00 Aaa 639,305
Lease Revenue Bonds, Manchester Social Services Project,
Series 2005, 5.000%, 9/01/37 - AMBAC Insured
2,750 Los Angeles County Schools, California, Certificates of 9/13 at 100.00 AAA 2,867,838
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 9/06 at 103.00 N/R 3,795,437
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 1,130,335
1,145 5.250%, 9/01/23 - AMBAC Insured 9/14 at 100.00 AAA 1,236,062
1,255 5.250%, 9/01/24 - AMBAC Insured 9/14 at 100.00 AAA 1,352,150
420 Oakland Redevelopment Agency, California, Subordinate 3/13 at 100.00 AAA 462,176
Lien 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 8,532,079
California, Special Tax Bonds, Community Facilities
District 90-1, Series 1999, 5.800%, 8/01/29 - FSA Insured
290 Rialto Redevelopment Agency, California, Tax Allocation Bonds, 9/15 at 100.00 AAA 301,615
Merged Project Area, Series 2005A, 5.000%, 9/01/35 -
XLCA Insured
5,000 Riverside County Redevelopment Agency, California, Tax 10/14 at 100.00 AAA 5,172,800
Allocation Housing Bonds, Series 2004A, 5.000%, 10/01/37 -
XLCA Insured
360 Roseville, California, Certificates of Participation, Public 8/13 at 100.00 AAA 375,692
Facilities, Series 2003A, 5.000%, 8/01/25 - AMBAC Insured
23
Nuveen California Municipal Value Fund, Inc. (NCA) (continued)
Portfolio of INVESTMENTS August 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 3,130 San Francisco Redevelopment Agency, California, Lease Revenue 7/11 at 102.00 AAA $ 3,366,565
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 2,894,128
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 1,728,050
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 1,050,760
Series 2004, 5.000%, 9/01/24 - AMBAC Insured
1,925 Travis Unified School District, Solano County, California, 9/16 at 100.00 Aaa 2,031,183
Certificates of Participation, Series 2006, 5.000%, 9/01/26 -
FGIC Insured
3,845 Ventura County Superintendent of Schools, California, 12/11 at 100.00 AAA 3,976,422
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 3,283,980
Loan Note, Series 1999A, 6.500%, 10/01/24
2,570 Vista Joint Powers Financing Authority, California, Special 9/06 at 101.00 N/R 2,594,801
Tax Lease Revenue Refunding Bonds, Community Facilities
District 90-2, Series 1997A, 5.875%, 9/01/20
------------------------------------------------------------------------------------------------------------------------------------
67,495 Total Tax Obligation/Limited 71,434,911
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 3.6% (3.6% OF TOTAL INVESTMENTS)
2,500 Bay Area Toll Authority, California, Revenue Bonds, 4/16 at 100.00 AA 2,637,175
San Francisco Bay Area Toll Bridge, Series 2006,
5.000%, 4/01/31
5,500 Foothill/Eastern Transportation Corridor Agency, California, 1/14 at 101.00 BBB- 4,950,550
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 1,328,988
5.500%, 7/01/30 - FSA Insured
240 Palm Springs Financing Authority, California, Palm Springs 7/14 at 102.00 N/R 243,998
International Airport Revenue Bonds, Series 2006,
5.550%, 7/01/28 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
9,490 Total Transportation 9,160,711
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 27.6% (28.0% OF TOTAL INVESTMENTS) (4)
2,400 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 N/R (4) 2,601,072
Settlement Asset-Backed Bonds, Sonoma County Tobacco
Funding Corporation, Series 2002B, 5.500%, 6/01/30
(Pre-refunded 6/01/12)
4,500 California Department of Water Resources, Power Supply 5/12 at 101.00 Aaa 4,901,175
Revenue Bonds, Series 2002A, 5.125%, 5/01/18
(Pre-refunded 5/01/12)
3,115 California Educational Facilities Authority, Revenue Bonds, 6/10 at 101.00 Baa3 (4) 3,470,577
Pooled College and University Projects, Series 2000C,
6.750%, 6/01/30 (ETM)
12,000 California Health Facilities Financing Authority, Revenue Bonds, 12/09 at 101.00 A3 (4) 13,066,199
Cedars-Sinai Medical Center, Series 1999A, 6.125%, 12/01/30
(Pre-refunded 12/01/09)
4,000 California State Public Works Board, Lease Revenue Bonds, 11/09 at 101.00 AAA 4,308,800
Department of Health Services, Series 1999A,
5.750%, 11/01/24 (Pre-refunded 11/01/09) - MBIA Insured
6,260 California, Various Purpose General Obligation Bonds, 3/10 at 101.00 AAA 6,772,443
Series 2000, 5.750%, 3/01/27 (Pre-refunded 3/01/10) -
MBIA Insured
2,065 Contra Costa County, California, GNMA Mortgage-Backed No Opt. Call AAA 2,809,804
Securities Program Home Mortgage Revenue Bonds,
Series 1988, 8.250%, 6/01/21 (Alternative Minimum Tax) (ETM)
24
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
Golden State Tobacco Securitization Corporation, California,
Enhanced Tobacco Settlement Asset-Backed Bonds,
Series 2003B:
$ 3,800 5.500%, 6/01/33 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA $ 4,201,432
3,000 5.625%, 6/01/38 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 3,339,120
2,500 Los Angeles Community Redevelopment Agency, California, 1/07 at 100.00 BBB (4) 2,566,850
Tax Allocation Refunding Bonds, Central Business District
Redevelopment Project, Series 1987G, 6.750%, 7/01/10 (ETM)
4,188 Merced Irrigation District, California, Subordinated Revenue 3/08 at 102.00 AAA 4,477,977
Certificates of Participation, Electric System Project,
Series 2000, 7.450%, 3/01/18 (Pre-refunded 3/01/08)
8,565 Palmdale, California, GNMA Mortgage-Backed Securities No Opt. Call AAA 5,524,511
Program Single Family Mortgage Revenue Bonds,
Series 1988A, 0.000%, 3/01/17 (ETM)
3,300 Puerto Rico Highway and Transportation Authority, Highway 7/12 at 100.00 AAA 3,597,396
Revenue Bonds, Series 2002D, 5.375%, 7/01/36 (Pre-refunded
7/01/12)
20,415 San Bernardino County, California, GNMA Mortgage-Backed No Opt. Call AAA 9,024,450
Securities Program Single Family Home Mortgage Revenue
Bonds, Series 1988A, 0.000%, 9/01/21 (Alternative
Minimum Tax) (ETM)
------------------------------------------------------------------------------------------------------------------------------------
80,108 Total U.S. Guaranteed 70,661,806
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 3.0% (3.1% OF TOTAL INVESTMENTS)
2,740 California Statewide Community Development Authority, 12/06 at 101.00 N/R 2,757,043
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 531,485
Power System Revenue Bonds, Series 2003A-2,
5.000%, 7/01/21 - MBIA Insured
605 Merced Irrigation District, California, Electric System Revenue 9/15 at 100.00 AAA 638,457
Bonds, Series 2005, 5.125%, 9/01/31 - XLCA Insured
3,470 Puerto Rico Industrial, Tourist, Educational, Medical and 6/10 at 101.00 Baa3 3,782,612
Environmental Control Facilities Financing Authority,
Co-Generation Facility Revenue Bonds, Series 2000A,
6.625%, 6/01/26 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
7,315 Total Utilities 7,709,597
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 5.4% (5.5% OF TOTAL INVESTMENTS)
1,500 California Department of Water Resources, Water System 6/15 at 100.00 AAA 1,600,035
Revenue Bonds, Central Valley Project, Series 2005AD,
5.000%, 12/01/22 - FSA Insured
410 Healdsburg Public Financing Authority, California, 4/16 at 100.00 AAA 430,525
Wastewater Revenue Bonds, Series 2006, 5.000%, 4/01/36 -
MBIA Insured
500 Los Angeles County Sanitation Districts Financing Authority, 10/13 at 100.00 AAA 527,750
California, Senior Revenue Bonds, Capital Projects,
Series 2003A, 5.000%, 10/01/23 - FSA Insured
5,000 Orange County Sanitation District, California, Certificates 8/13 at 100.00 AAA 5,326,050
of Participation, Series 2003, 5.250%, 2/01/27 - FGIC Insured
625 Sacramento County Sanitation District Financing Authority, 6/16 at 100.00 AAA 661,800
California, Revenue Bonds, Series 2006, 5.000%, 12/01/31 -
FGIC Insured
25
Nuveen California Municipal Value Fund, Inc. (NCA) (continued)
Portfolio of INVESTMENTS August 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 1,580 San Diego County Water Authority, California, Water Revenue 5/12 at 101.00 AAA $ 1,652,285
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+ 3,654,455
Participation, Water Systems Project, Series 2003,
5.625%, 7/01/43
------------------------------------------------------------------------------------------------------------------------------------
13,115 Total Water and Sewer 13,852,900
------------------------------------------------------------------------------------------------------------------------------------
$ 253,218 Total Investments (cost $235,376,319) - 98.5% 252,140,433
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.5% 3,728,032
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 255,868,465
====================================================================================================================
FORWARD SWAPS OUTSTANDING AT AUGUST 31, 2006:
RATE RATE FIXED RATE FLOATING RATE UNREALIZED
NOTIONAL PAID RECEIVED PAYMENT PAYMENT EFFECTIVE TERMINATION APPRECIATION
COUNTERPARTY AMOUNT BY THE FUND (5) BY THE FUND (5) FREQUENCY FREQUENCY DATE (6) DATE (DEPRECIATION)
------------------------------------------------------------------------------------------------------------------------------------
JPMorgan $3,800,000 3 Month USD-LIBOR 5.869% Semi-Annually Quarterly 7/27/07 7/27/34 $232,056
Morgan Stanley 9,500,000 3 Month USD-LIBOR 5.816% Semi-Annually Quarterly 7/27/07 7/27/29 467,571
------------------------------------------------------------------------------------------------------------------------------------
$699,627
====================================================================================================================================
USD-LIBOR (United States Dollar-London Inter-Bank Offered Rates)
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Optional Call Provisions (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. Certain
mortgage-backed securities may be subject to periodic
principal paydowns.
(3) Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating. Ratings below BBB
by Standard & Poor's Group or Baa by Moody's Investor
Service, Inc. are considered to be below investment
grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
(5) Represents the annualized rate paid or received by the
Fund.
(6) Effective date represents the date on which both the
Fund and counterparty commence interest payment
accruals on each forward swap contract.
N/R Not rated.
(ETM) Escrowed to maturity.
See accompanying notes to financial statements.
26
Nuveen California Performance Plus Municipal Fund, Inc. (NCP)
Portfolio of
INVESTMENTS August 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.1% (1.4% OF TOTAL INVESTMENTS)
$ 750 California County Tobacco Securitization Agency, Tobacco 6/15 at 100.00 BBB $ 729,270
Settlement Asset-Backed Bonds, Sonoma County Tobacco
Securitization Corporation, Series 2005, 4.250%, 6/01/21
3,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB 3,387,060
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.750%, 6/01/39
------------------------------------------------------------------------------------------------------------------------------------
3,750 Total Consumer Staples 4,116,330
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 6.3% (4.2% OF TOTAL INVESTMENTS)
160 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 A3 164,283
University of Redlands, Series 2005A, 5.000%, 10/01/35
California Educational Facilities Authority, Revenue Bonds,
University of the Pacific, Series 2006:
110 5.000%, 11/01/21 11/15 at 100.00 A2 116,503
150 5.000%, 11/01/25 11/15 at 100.00 A2 157,471
4,730 California Infrastructure Economic Development Bank, 10/11 at 101.00 A- 5,032,436
Revenue 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 5,029,835
Series 2002A, 5.000%, 11/01/19 - AMBAC Insured
2,000 University of California, Revenue Bonds, Multi-Purpose 5/13 at 100.00 AAA 2,157,300
Projects, Series 2003A, 5.125%, 5/15/17 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
11,880 Total Education and Civic Organizations 12,657,828
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 12.2% (8.1% OF TOTAL INVESTMENTS)
2,475 California Health Facilities Financing Authority, Insured Health 11/06 at 100.00 A+ 2,478,811
Facility Revenue Refunding Bonds, Valley Memorial Hospital,
Series 1993A, 6.000%, 5/01/17
1,125 California Health Facilities Financing Authority, Revenue Bonds, 11/15 at 100.00 A3 1,153,800
Cedars-Sinai Medical Center, Series 2005, 5.000%, 11/15/34
5,500 California Statewide Community Development Authority, 7/07 at 102.00 AA- 5,654,935
Certificates of Participation Refunding, St. Joseph Health
System, Series 1997, 5.125%, 7/01/17
5,220 California Statewide Community Development Authority, 3/16 at 100.00 A+ 5,343,714
Revenue Bonds, Kaiser Permanante System, Series 2006,
5.000%, 3/01/41
1,755 California Statewide Community Development Authority, 8/16 at 100.00 A+ 1,855,702
Revenue Bonds, Kaiser Permanente System, Series 2001C,
5.250%, 8/01/31
1,355 California Statewide Community Development Authority, No Opt. Call AAA 1,451,801
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:
1,980 5.250%, 2/01/13 2/07 at 100.00 Baa2 1,981,346
4,560 5.000%, 2/01/23 2/07 at 100.00 Baa2 4,560,593
------------------------------------------------------------------------------------------------------------------------------------
23,970 Total Health Care 24,480,702
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 4.7% (3.1% OF TOTAL INVESTMENTS)
3,750 California Statewide Community Development Authority, No Opt. Call BBB 3,799,200
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 1,580,685
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 4,015,694
Housing Revenue Bonds, Ridgecroft Apartments, Series 1997E,
6.250%, 9/20/39 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
9,165 Total Housing/Multifamily 9,395,579
------------------------------------------------------------------------------------------------------------------------------------
27
Nuveen California Performance Plus Municipal Fund, Inc. (NCP) (continued)
Portfolio of INVESTMENTS August 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.5% (0.4% OF TOTAL INVESTMENTS)
$ 1,250 California Pollution Control Financing Authority, Solid Waste 1/16 at 102.00 BBB $ 1,288,125
Disposal Revenue Bonds, Waste Management Inc.,
Series 2002A, 5.000%, 1/01/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 22.1% (14.7% OF TOTAL INVESTMENTS)
2,000 California, General Obligation Bonds, Series 2003, 8/13 at 100.00 AAA 2,155,960
5.250%, 2/01/22 - CIFG Insured
California, General Obligation Bonds, Series 2004:
500 5.000%, 2/01/23 2/14 at 100.00 A+ 523,460
3,950 5.200%, 4/01/26 4/14 at 100.00 A+ 4,214,966
3,400 5.250%, 4/01/34 4/14 at 100.00 A+ 3,609,270
3,435 California, General Obligation Veterans Welfare Bonds, 12/06 at 100.00 AA- 3,448,912
Series 2000BT, 5.375%, 12/01/16 (Alternative Minimum Tax)
3,550 Centinela Valley Union High School District, Los Angeles No Opt. Call AAA 3,985,798
County, California, General Obligation Bonds, Series 2002A,
5.250%, 2/01/26 - MBIA Insured
1,000 Los Angeles Unified School District, California, General 7/14 at 100.00 AAA 1,072,890
Obligation Bonds, Series 2004A-2, 5.000%, 7/01/20 -
FGIC Insured
1,400 Los Rios Community College District, Sacramento, El Dorado 8/14 at 102.00 AAA 1,495,298
and Yolo Counties, California, General Obligation Bonds,
Series 2006C, 5.000%, 8/01/24 - FSA Insured
4,765 North Orange County Community College District, California, No Opt. Call AAA 1,840,481
General Obligation Bonds, Series 2003B, 0.000%, 8/01/27 -
FGIC Insured
2,575 Oxnard School District, Ventura County, California, General 2/22 at 103.00 AAA 3,034,277
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 6,725,100
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 16,314
20 5.250%, 8/01/26 - MBIA Insured 8/14 at 100.00 AAA 21,752
325 Roseville Joint Union High School District, Placer County, 8/15 at 100.00 AAA 344,035
California, General Obligation Bonds, Series 2006B,
5.000%, 8/01/27 - FGIC Insured
4,000 San Diego Unified School District, San Diego County, 7/13 at 101.00 AAA 4,383,200
California, General Obligation Bonds, Series 2003E,
5.250%, 7/01/22 - FSA Insured
3,000 San Jose-Evergreen Community College District, Santa Clara 9/10 at 100.00 AAA 3,209,550
County, California, General Obligation Bonds, Series 2000B,
5.600%, 9/01/24 - FGIC Insured
2,200 Santa Maria Joint Union High School District, Santa Barbara No Opt. Call Aaa 2,614,986
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 1,549,800
California, General Obligation Bonds, Series 2005,
5.000%, 8/01/24 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
43,575 Total Tax Obligation/General 44,246,049
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 24.7% (16.4% OF TOTAL INVESTMENTS)
5,045 California State Public Works Board, Lease Revenue Bonds, 3/12 at 100.00 AAA 5,366,417
Department of Corrections, Series 2002A, 5.250%, 3/01/22 -
AMBAC Insured
1,575 California State Public Works Board, Lease Revenue Bonds, 12/13 at 100.00 A 1,734,280
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 3,335,833
Department of Mental Health, Coalinga State Hospital,
Series 2004A, 5.500%, 6/01/19
2,195 California, Economic Recovery Revenue Bonds, Series 2004A, 7/14 at 100.00 AA- 2,379,643
5.000%, 7/01/15
400 Capistrano Unified School District, Orange County, California, 9/15 at 100.00 AAA 423,932
Special Tax Bonds, Community Facilities District, Series 2005,
5.000%, 9/01/24 - FGIC Insured
2,500 Corona Public Financing Authority, California, Superior Lien 9/09 at 102.00 AAA 2,634,600
Revenue Bonds, Series 1999A, 5.000%, 9/01/20 - FSA Insured
1,045 Hawthorne Community Redevelopment Agency, California, 9/16 at 100.00 AAA 1,120,167
Project Area 2 Tax Allocation Bonds, Series 2006,
5.250%, 9/01/36 - XLCA Insured
28
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
Hesperia Community Redevelopment Agency, California,
Tax Allocation Bonds, Series 2005A:
$ 310 5.000%, 9/01/20 - XLCA Insured 9/15 at 100.00 AAA $ 329,983
1,750 5.000%, 9/01/25 - XLCA Insured 9/15 at 100.00 AAA 1,841,298
Irvine, California, Unified School District, Community Facilities
District Special Tax Bonds, Series 2006A:
195 5.000%, 9/01/26 9/06 at 103.00 N/R 196,757
450 5.125%, 9/01/36 9/06 at 103.00 N/R 454,914
730 Los Angeles Community Redevelopment Agency, California, 9/15 at 100.00 Aaa 758,850
Lease Revenue Bonds, Manchester Social Services Project,
Series 2005, 5.000%, 9/01/37 - AMBAC Insured
1,395 Moreno Valley Unified School District, Riverside County, 3/14 at 100.00 AAA 1,470,288
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 2,208,120
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 1,052,770
Bonds, Redevelopment Project Area 1, Series 2003,
5.000%, 8/01/23 - MBIA Insured
350 Rialto Redevelopment Agency, California, Tax Allocation 9/15 at 100.00 AAA 364,018
Bonds, Merged Project Area, Series 2005A, 5.000%, 9/01/35 -
XLCA Insured
1,500 Riverside County Public Financing Authority, California, 10/15 at 100.00 AAA 1,557,060
Tax Allocation Bonds, Multiple Projects, Series 2005A,
5.000%, 10/01/37 - XLCA Insured
435 Roseville, California, Certificates of Participation, Public 8/13 at 100.00 AAA 453,962
Facilities, Series 2003A, 5.000%, 8/01/25 - AMBAC Insured
1,000 Sacramento City Financing Authority, California, Lease Revenue No Opt. Call AAA 1,120,600
Refunding Bonds, Series 1993A, 5.400%, 11/01/20 -
MBIA Insured
5,000 San Marcos Public Facilities Authority, California, Tax Allocation 8/15 at 100.00 AAA 5,198,550
Bonds, Project Areas 2 and 3, Series 2005C,
5.000%, 8/01/35 - AMBAC Insured
Santa Clara Redevelopment Agency, California, Tax Allocation
Bonds, Bayshore North Project, Series 2003:
4,450 5.000%, 6/01/19 - MBIA Insured 6/13 at 100.00 AAA 4,702,894
2,695 5.000%, 6/01/20 - MBIA Insured 6/13 at 100.00 AAA 2,839,021
1,500 6/01/21 - MBIA Insured 6/13 at 100.00 AAA 1,576,545
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 2,104,300
4,015 5.000%, 9/01/24 - FSA Insured 9/12 at 102.00 AAA 4,218,801
------------------------------------------------------------------------------------------------------------------------------------
46,545 Total Tax Obligation/Limited 49,443,603
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 26.5% (17.6% OF TOTAL INVESTMENTS)
1,430 Bay Area Toll Authority, California, Revenue Bonds, 4/16 at 100.00 AA 1,508,464
San Francisco Bay Area Toll Bridge, Series 2006,
5.000%, 4/01/31
6,500 Foothill/Eastern Transportation Corridor Agency, California, 1/14 at 101.00 BBB- 5,831,020
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 2,931,608
11,885 5.750%, 5/15/15 (Alternative Minimum Tax) 5/10 at 101.00 AA 12,711,364
2,500 Orange County, California, Airport Revenue Refunding Bonds, 7/13 at 100.00 AAA 2,661,900
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 9,047,610
5.750%, 11/01/29 - FGIC Insured (Alternative Minimum Tax)
1,400 Port of Oakland, California, Revenue Bonds, Series 2002M, 11/12 at 100.00 AAA 1,512,588
5.250%, 11/01/20 - FGIC Insured
14,000 San Francisco Airports Commission, California, Revenue Bonds, 5/10 at 101.00 AAA 14,837,200
San Francisco International Airport, Second Series 2000,
Issue 25, 5.500%, 5/01/24 - FSA Insured (Alternative
Minimum Tax)
2,000 San Francisco Airports Commission, California, Revenue 5/11 at 100.00 AAA 2,066,620
Refunding Bonds, San Francisco International Airport,
Second Series 2001, Issue 27B, 5.000%, 5/01/23 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
51,005 Total Transportation 53,108,374
------------------------------------------------------------------------------------------------------------------------------------
29
Nuveen California Performance Plus Municipal Fund, Inc. (NCP) (continued)
Portfolio of INVESTMENTS August 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 24.5% (16.2% OF TOTAL INVESTMENTS) (4)
$ 2,680 California County Tobacco Securitization Agency, Tobacco 6/10 at 100.00 N/R (4) $ 2,756,862
Settlement Asset-Backed Bonds, Sonoma County Tobacco
Funding Corporation, Series 2002B, 5.125%, 6/01/20
(Pre-refunded 6/01/10)
5,250 California Department of Water Resources, Power Supply 5/12 at 101.00 Aaa 5,718,038
Revenue Bonds, Series 2002A, 5.125%, 5/01/18 (Pre-refunded
5/01/12)
3,000 California Health Facilities Financing Authority, Revenue Bonds, 12/09 at 101.00 A3 (4) 3,266,550
Cedars-Sinai Medical Center, Series 1999A, 6.125%, 12/01/30
(Pre-refunded 12/01/09)
5,360 California Infrastructure Economic Development Bank, No Opt. Call AAA 5,959,409
First Lien Revenue Bonds, San Francisco Bay Area Toll Bridge,
Series 2003A, 5.000%, 7/01/23 - FSA Insured (ETM)
645 California Statewide Community Development Authority, 8/08 at 102.00 AAA 675,760
Revenue Bonds, Sherman Oaks Health System, Series 1998A,
5.000%, 8/01/22 (Pre-refunded 8/01/08) - AMBAC Insured
4,000 Contra Costa County, California, GNMA Mortgage-Backed No Opt. Call AAA 5,442,720
Securities Program Home Mortgage Revenue Bonds,
Series 1988, 8.250%, 6/01/21 (Alternative Minimum Tax) (ETM)
3,750 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 4,146,150
Enhanced Tobacco Settlement Asset-Backed Bonds,
Series 2003B, 5.500%, 6/01/33 (Pre-refunded 6/01/13)
2,500 Hawthorne School District, Los Angeles County, California, 11/08 at 102.00 AAA 2,654,850
General Obligation Bonds, Series 1997A, 5.500%, 5/01/22
(Pre-refunded 11/01/08) - FGIC Insured
1,530 Long Beach Community College District, California, General 5/13 at 100.00 AAA 1,656,347
Obligation Bonds, Series 2003A, 5.000%, 5/01/18
(Pre-refunded 5/01/13) - MBIA Insured
8,000 Los Angeles Unified School District, California, General 7/10 at 100.00 AAA 8,546,640
Obligation Bonds, Series 2000D, 5.375%, 7/01/25
(Pre-refunded 7/01/10) - FGIC Insured
4,000 Puerto Rico Highway and Transportation Authority, Highway 7/12 at 100.00 AAA 4,360,480
Revenue Bonds, Series 2002D, 5.375%, 7/01/36 (Pre-refunded
7/01/12)
Riverside Community College District, California, General
Obligation Bonds, Series 2004A:
1,470 5.250%, 8/01/25 (Pre-refunded 8/01/14) - MBIA Insured 8/14 at 100.00 AAA 1,630,612
1,960 5.250%, 8/01/26 (Pre-refunded 8/01/14) - MBIA Insured 8/14 at 100.00 AAA 2,174,150
------------------------------------------------------------------------------------------------------------------------------------
44,145 Total U.S. Guaranteed 48,988,568
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 9.9% (6.5% OF TOTAL INVESTMENTS)
4,715 California Statewide Community Development Authority, 12/06 at 101.00 N/R 4,744,327
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 770,653
Power System Revenue Bonds, Series 2003A-2,
5.000%, 7/01/21 - MBIA Insured
500 Los Angeles Department of Water and Power, California, 7/15 at 100.00 AAA 526,410
Power System Revenue Bonds, Series 2005A-1,
5.000%, 7/01/31 - FSA Insured
715 Merced Irrigation District, California, Electric System Revenue 9/15 at 100.00 AAA 754,540
Bonds, Series 2005, 5.125%, 9/01/31 - XLCA Insured
10,450 Orange County Public Financing Authority, California, Waste No Opt. Call Aaa 11,337,623
Management System Revenue Refunding Bonds, Series 1997,
5.250%, 12/01/13 - AMBAC Insured (Alternative Minimum Tax)
1,000 Sacramento Municipal Utility District, California, Electric No Opt. Call AAA 1,085,580
Revenue Bonds, Series 2004T, 5.250%, 5/15/23 -
FGIC Insured
500 Sacramento Municipal Utility District, California, Electric 8/12 at 100.00 AAA 535,280
Revenue Refunding Bonds, Series 2002Q, 5.250%, 8/15/22 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
18,605 Total Utilities 19,754,413
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 17.1% (11.4% OF TOTAL INVESTMENTS)
2,500 California Department of Water Resources, Water System 6/13 at 100.00 AAA 2,727,575
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 1,071,630
Water and Wastewater Revenue Bonds, Pooled Financing
Program, Series 2003A, 5.250%, 10/01/23 - FSA Insured
2,500 El Centro Financing Authority, California, Water Revenue 10/16 at 100.00 AAA 2,553,175
Bonds, Series 2006A, 4.750%, 10/01/31 - FSA Insured
30
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 490 Healdsburg Public Financing Authority, California, Wastewater 4/16 at 100.00 AAA $ 514,529
Revenue Bonds, Series 2006, 5.000%, 4/01/36 - MBIA Insured
4,770 Los Angeles Department of Water and Power, California, 7/14 at 100.00 AAA 5,194,101
Waterworks Revenue Bonds, Series 2004C, 5.250%, 7/01/20 -
MBIA Insured
2,500 Pajaro Valley Water Management Agency, California, Revenue 3/09 at 101.00 AAA 2,637,975
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 6,429,626
California, Revenue Bonds, Series 2000A, 5.250%, 12/01/12
750 Sacramento County Sanitation District Financing Authority, 6/16 at 100.00 AAA 791,708
California, Revenue Bonds, Series 2006, 5.000%, 12/01/36 -
FGIC Insured
4,000 Sacramento County Sanitation District Financing Authority, No Opt. Call AAA 4,663,280
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 4,990,222
Revenue Certificates of Participation, Series 1997A,
5.550%, 8/01/27 - AMBAC Insured (5)
1,700 South Gate Utility Authority, California, Subordinate Revenue 10/11 at 102.00 AAA 1,784,116
Bonds, Water and Sewer System Projects, Series 2001,
5.000%, 10/01/22 - FGIC Insured
945 Woodbridge Irrigation District, California, Certificates 7/13 at 100.00 BBB+ 986,702
of Participation, Water Systems Project, Series 2003,
5.625%, 7/01/43
------------------------------------------------------------------------------------------------------------------------------------
31,725 Total Water and Sewer 34,344,639
------------------------------------------------------------------------------------------------------------------------------------
$ 285,615 Total Investments (cost $284,153,070) - 150.6% 301,824,210
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.3% 4,535,057
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.9)% (106,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 200,359,267
====================================================================================================================
FORWARD SWAPS OUTSTANDING AT AUGUST 31, 2006:
RATE RATE FIXED RATE FLOATING RATE UNREALIZED
NOTIONAL PAID RECEIVED PAYMENT PAYMENT EFFECTIVE TERMINATION APPRECIATION
COUNTERPARTY AMOUNT BY THE FUND (6) BY THE FUND (6) FREQUENCY FREQUENCY DATE (7) DATE (DEPRECIATION)
------------------------------------------------------------------------------------------------------------------------------------
JPMorgan $25,300,000 5.630% 3 Month USD-LIBOR Semi-Annually Quarterly 7/27/07 7/27/10 $(370,327)
JPMorgan 5,800,000 3 Month USD-LIBOR 5.869% Semi-Annually Quarterly 7/27/07 7/27/34 354,191
Morgan Stanley 14,600,000 3 Month USD-LIBOR 5.816% Semi-Annually Quarterly 7/27/07 7/27/29 718,581
------------------------------------------------------------------------------------------------------------------------------------
$ 702,445
====================================================================================================================================
USD-LIBOR (United States Dollar-London Inter-Bank Offered Rates)
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Optional Call Provisions (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. Certain
mortgage-backed securities may be subject to periodic
principal paydowns.
(3) Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating. Ratings below BBB
by Standard & Poor's Group or Baa by Moody's Investor
Service, Inc. are considered to be below investment
grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
(5) The issuer has received a preliminary adverse
determination from the Internal Revenue Service (the
"IRS") regarding the tax-exempt status of the bonds'
coupon payments. The Fund will continue to treat coupon
payments as tax-exempt income until such time that it
is formally determined that the interest on the bonds
should be treated as taxable.
(6) Represents the annualized rate paid or received by the
Fund.
(7) Effective date represents the date on which both the
Fund and counterparty commence interest payment
accruals on each forward swap contract.
N/R Not rated.
(ETM) Escrowed to maturity.
See accompanying notes to financial statements.
31
Nuveen California Municipal Market Opportunity Fund, Inc. (NCO)
Portfolio of
INVESTMENTS August 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.1% (1.4% OF TOTAL INVESTMENTS)
$ 480 California County Tobacco Securitization Agency, Tobacco 6/15 at 100.00 BBB $ 466,733
Settlement Asset-Backed Bonds, Sonoma County Tobacco
Securitization Corporation, Series 2005, 4.250%, 6/01/21
2,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB 2,195,540
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.250%, 6/01/33
------------------------------------------------------------------------------------------------------------------------------------
2,480 Total Consumer Staples 2,662,273
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 7.6% (5.0% OF TOTAL INVESTMENTS)
100 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 A3 102,677
University of Redlands, Series 2005A, 5.000%, 10/01/35
California Educational Facilities Authority, Revenue Bonds,
University of the Pacific, Series 2006:
70 5.000%, 11/01/21 11/15 at 100.00 A2 74,138
95 5.000%, 11/01/25 11/15 at 100.00 A2 99,732
1,000 California Infrastructure Economic Development Bond Bank, 7/15 at 100.00 Aa3 1,046,820
Revenue Bonds, Scripps Research Institute, Series 2005A,
5.000%, 7/01/24
1,530 University of California, Certificates of Participation, 1/10 at 101.00 Aa2 1,598,299
San Diego 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 6,818,788
Projects, Series 2000K, 5.000%, 9/01/13
------------------------------------------------------------------------------------------------------------------------------------
9,375 Total Education and Civic Organizations 9,740,454
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 11.9% (7.9% OF TOTAL INVESTMENTS)
725 California Health Facilities Financing Authority, Revenue Bonds, 11/15 at 100.00 A3 743,560
Cedars-Sinai Medical Center, Series 2005, 5.000%, 11/15/34
3,200 California Infrastructure Economic Development Bank, 8/11 at 102.00 A+ 3,388,128
Revenue Bonds, Kaiser Hospital Assistance LLC, Series 2001A,
5.550%, 8/01/31
3,340 California Statewide Community Development Authority, 3/16 at 100.00 A+ 3,419,158
Revenue Bonds, Kaiser Permanante System, Series 2006,
5.000%, 3/01/41
1,135 California Statewide Community Development Authority, 8/16 at 100.00 A+ 1,200,126
Revenue Bonds, Kaiser Permanente System, Series 2001C,
5.250%, 8/01/31
675 California Statewide Community Development Authority, No Opt. Call AAA 723,222
Revenue Bonds, Sherman Oaks Health System, Series 1998A,
5.000%, 8/01/22 - AMBAC Insured
5,795 Central California Joint Powers Health Finance Authority, 2/07 at 100.00 Baa2 5,795,753
Certificates of Participation, Community Hospitals of Central
California, Series 1993, 5.000%, 2/01/23
------------------------------------------------------------------------------------------------------------------------------------
14,870 Total Health Care 15,269,947
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.2% (0.8% OF TOTAL INVESTMENTS)
1,550 San Bernardino County Housing Authority, California, No Opt. Call A- 1,593,834
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)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.7% (0.4% OF TOTAL INVESTMENTS)
750 California Pollution Control Financing Authority, Solid Waste 1/16 at 102.00 BBB 772,875
Disposal Revenue Bonds, Waste Management Inc.,
Series 2002A, 5.000%, 1/01/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 22.7% (15.0% OF TOTAL INVESTMENTS)
4,125 Alameda Unified School District, Alameda County, California, No Opt. Call AAA 1,761,210
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 1,081,700
1,000 5.250%, 2/01/22 - CIFG Insured 8/13 at 100.00 AAA 1,077,980
32
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
California, General Obligation Bonds, Series 2004:
$ 1,000 5.125%, 2/01/27 2/14 at 100.00 A+ $ 1,056,110
2,100 5.250%, 4/01/34 4/14 at 100.00 A+ 2,229,255
1,350 Coachella Valley Unified School District, Riverside County, 8/15 at 100.00 AAA 1,423,940
California, General Obligation Bonds, Series 2005A,
5.000%, 8/01/30 - FGIC Insured
3,230 Fullerton Joint Union High School District, Orange County, 8/15 at 100.00 Aaa 3,419,181
California, General Obligation Bonds, Series 2005B,
5.000%, 8/01/27 - FGIC Insured
2,150 Los Rios Community College District, Sacramento, El Dorado 8/14 at 102.00 AAA 2,296,351
and Yolo Counties, California, General Obligation Bonds,
Series 2006C, 5.000%, 8/01/24 - FSA Insured
4,100 Monrovia Unified School District, Los Angeles County, No Opt. Call AAA 1,583,625
California, General Obligation Bonds, Series 2001B,
0.000%, 8/01/27 - FGIC Insured
2,500 Oakland Unified School District, Alameda County, California, 8/12 at 100.00 AAA 2,699,325
General Obligation Bonds, Series 2002, 5.250%, 8/01/21 -
FGIC Insured
1,000 Pomona Unified School District, Los Angeles County, California, 8/11 at 103.00 AAA 1,139,990
General Obligation Refunding Bonds, Series 1997A,
6.150%, 8/01/15 - MBIA Insured
25 Riverside Community College District, California, General 8/14 at 100.00 AAA 27,190
Obligation Bonds, Series 2004A, 5.250%, 8/01/24 -
MBIA Insured
210 Roseville Joint Union High School District, Placer County, 8/15 at 100.00 AAA 222,300
California, General Obligation Bonds, Series 2006B,
5.000%, 8/01/27 - FGIC Insured
5,000 San Diego Unified School District, California, General 7/10 at 100.00 AAA 5,264,100
Obligation Bonds, Election of 1998, Series 2000B,
5.125%, 7/01/21 - MBIA Insured
4,970 San Rafael City High School District, Marin County, No Opt. Call AAA 1,919,663
California, General Obligation Bonds, Series 2004B,
0.000%, 8/01/27 - FGIC Insured
4,175 Southwestern Community College District, San Diego County, No Opt. Call AAA 1,782,558
California, General Obligation Bonds, Series 2004,
0.000%, 8/01/25 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
37,935 Total Tax Obligation/General 28,984,478
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 34.3% (22.6% OF TOTAL INVESTMENTS)
2,000 California State Public Works Board, Lease Revenue Bonds, 6/14 at 100.00 A 2,216,500
Department of Mental Health, Coalinga State Hospital,
Series 2004A, 5.500%, 6/01/19
1,420 California, Economic Recovery Revenue Bonds, 7/14 at 100.00 AA- 1,539,450
Series 2004A, 5.000%, 7/01/15
260 Capistrano Unified School District, Orange County, California, 9/15 at 100.00 AAA 275,556
Special Tax Bonds, Community Facilities District, Series 2005,
5.000%, 9/01/24 - FGIC Insured
1,035 Hawthorne Community Redevelopment Agency, California, 9/16 at 100.00 AAA 1,109,448
Project Area 2 Tax Allocation Bonds, Series 2006,
5.250%, 9/01/36 - XLCA Insured
195 Hesperia Community Redevelopment Agency, California, 9/15 at 100.00 AAA 207,570
Tax Allocation Bonds, Series 2005A, 5.000%, 9/01/20 -
XLCA Insured
Irvine, California, Unified School District, Community Facilities
District Special Tax Bonds, Series 2006A:
125 5.000%, 9/01/26 9/06 at 103.00 N/R 126,126
290 5.125%, 9/01/36 9/06 at 103.00 N/R 293,167
470 Los Angeles Community Redevelopment Agency, California, 9/15 at 100.00 Aaa 488,574
Lease Revenue Bonds, Manchester Social Services Project,
Series 2005, 5.000%, 9/01/37 - AMBAC Insured
1,065 Los Angeles County Public Works Financing Authority, 10/07 at 101.00 AA 1,088,803
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 1,478,524
1,500 5.250%, 9/01/26 - AMBAC Insured 9/14 at 100.00 AAA 1,608,720
2,000 Monterey County, California, Certificates of Participation, 8/11 at 100.00 Aaa 2,074,380
Master Plan Financing, Series 2001, 5.000%, 8/01/21 -
MBIA Insured
10,900 Ontario Redevelopment Financing Authority, San Bernardino No Opt. Call AAA 14,767,865
County, California, Revenue Refunding Bonds, Redevelopment
Project 1, Series 1995, 7.400%, 8/01/25 - MBIA Insured
1,000 Ontario, California, Special Tax Bonds, Community Facilities 9/06 at 102.00 N/R 1,027,600
District 5, Freeway Interchange Project, Series 1997,
6.375%, 9/01/17
33
Nuveen California Municipal Market Opportunity Fund, Inc. (NCO) (continued)
Portfolio of INVESTMENTS August 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,065 Panama-Buena Vista Union School District, California, 9/16 at 100.00 AAA $ 1,138,027
Certificates of Participation, School Construction Project,
Series 2006, 5.000%, 9/01/22 - MBIA Insured
225 Rialto Redevelopment Agency, California, Tax Allocation 9/15 at 100.00 AAA 234,011
Bonds, Merged Project Area, Series 2005A, 5.000%, 9/01/35 -
XLCA Insured
280 Roseville, California, Certificates of Participation, Public 8/13 at 100.00 AAA 292,205
Facilities, Series 2003A, 5.000%, 8/01/25 - AMBAC Insured
2,500 Sacramento City Financing Authority, California, Lease Revenue No Opt. Call AAA 2,831,475
Refunding Bonds, Series 1993A, 5.400%, 11/01/20 -
AMBAC Insured
2,255 San Bernardino County, California, Certificates of Participation, 2/07 at 101.00 AAA 2,280,797
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 1,262,892
Refunding Bonds, Convention Center Project, Series 2001F,
5.000%, 9/01/20 - MBIA Insured
7,000 Union City Community Redevelopment Agency, California, 10/09 at 101.00 AAA 7,468,370
Tax Allocation Revenue Bonds, Redevelopment Project,
Series 1999, 5.750%, 10/01/32 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
38,160 Total Tax Obligation/Limited 43,810,060
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 22.0% (14.5% OF TOTAL INVESTMENTS)
4,000 Foothill/Eastern Transportation Corridor Agency, California, 1/14 at 101.00 BBB- 3,588,320
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 9,094,405
5.750%, 5/15/14 (Alternative Minimum Tax)
5,250 Port of Oakland, California, Revenue Bonds, Series 2000K, 5/10 at 100.00 AAA 5,555,550
5.750%, 11/01/29 - FGIC Insured (Alternative Minimum Tax)
San Francisco Airports Commission, California, Revenue Bonds,
San Francisco International Airport, Second Series 2000, Issue 25:
2,515 5.500%, 5/01/24 - FSA Insured (Alternative Minimum Tax) 5/10 at 101.00 AAA 2,665,397
3,100 5.750%, 5/01/30 - FSA Insured (Alternative Minimum Tax) 5/10 at 101.00 AAA 3,320,348
1,250 San Francisco Airports Commission, California, Revenue Bonds, 5/10 at 101.00 AAA 1,306,162
San Francisco International Airport, Second Series 2000,
Issue 26B, 5.000%, 5/01/21 - FGIC Insured
2,465 San Francisco Airports Commission, California, Special Facilities 1/08 at 102.00 AAA 2,590,025
Lease Revenue Bonds, San Francisco International Airport,
SFO Fuel Company LLC, Series 2000A, 6.125%, 1/01/27 - FSA
Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
27,080 Total Transportation 28,120,207
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 19.8% (13.1% OF TOTAL INVESTMENTS) (4)
1,315 Antelope Valley Community College District, Los Angeles 8/15 at 100.00 AAA 1,442,226
County, California, General Obligation Bonds, Series 2005A,
5.000%, 8/01/29 (Pre-refunded 8/01/15) - MBIA Insured
1,690 California County Tobacco Securitization Agency, Tobacco 6/10 at 100.00 N/R (4) 1,738,469
Settlement Asset-Backed Bonds, Sonoma County Tobacco
Funding Corporation, Series 2002B, 5.125%, 6/01/20
(Pre-refunded 6/01/10)
3,000 California Department of Water Resources, Power Supply 5/12 at 101.00 Aaa 3,267,450
Revenue Bonds, Series 2002A, 5.125%, 5/01/18
(Pre-refunded 5/01/12)
400 California Health Facilities Financing Authority, Revenue Bonds, 12/09 at 101.00 A3 (4) 435,540
Cedars-Sinai Medical Center, Series 1999A, 6.125%, 12/01/30
(Pre-refunded 12/01/09)
325 California Statewide Community Development Authority, 8/08 at 102.00 AAA 340,499
Revenue Bonds, Sherman Oaks Health System, Series 1998A,
5.000%, 8/01/22 (Pre-refunded 8/01/08) - AMBAC Insured
4,950 California, Various Purpose General Obligation Bonds, 3/10 at 101.00 AAA 5,355,207
Series 2000, 5.750%, 3/01/27 (Pre-refunded 3/01/10) -
MBIA Insured
5,000 Los Angeles Unified School District, California, General 7/10 at 100.00 AAA 5,341,650
Obligation Bonds, Series 2000D, 5.375%, 7/01/25
(Pre-refunded 7/01/10) - FGIC Insured
4,000 Pomona, California, GNMA/FHLMC Collateralized Single No Opt. Call AAA 5,275,000
Family Mortgage Revenue Refunding Bonds, Series 1990B,
7.500%, 8/01/23 (ETM)
1,875 Riverside Community College District, California, General 8/14 at 100.00 AAA 2,079,863
Obligation Bonds, Series 2004A, 5.250%, 8/01/24
(Pre-refunded 8/01/14) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
22,555 Total U.S. Guaranteed 25,275,904
------------------------------------------------------------------------------------------------------------------------------------
34
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 4.5% (3.0% OF TOTAL INVESTMENTS)
$ 1,500 California Pollution Control Financing Authority, Revenue 9/09 at 101.00 AAA $ 1,576,320
Refunding Bonds, Southern California Edison Company,
Series 1999A, 5.450%, 9/01/29 - MBIA Insured
3,155 California Statewide Community Development Authority, 12/06 at 101.00 N/R 3,174,624
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 531,485
Power System Revenue Bonds, Series 2003A-2,
5.000%, 7/01/21 - MBIA Insured
455 Merced Irrigation District, California, Electric System Revenue 9/15 at 100.00 AAA 480,162
Bonds, Series 2005, 5.125%, 9/01/31 - XLCA Insured
------------------------------------------------------------------------------------------------------------------------------------
5,610 Total Utilities 5,762,591
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 24.7% (16.3% OF TOTAL INVESTMENTS)
3,330 California Department of Water Resources, Water System 12/11 at 100.00 AA 3,620,376
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 1,183,614
Revenue Bonds, Central Valley Project, Series 2002X,
5.500%, 12/01/17 - FGIC Insured
1,390 California Department of Water Resources, Water System 6/15 at 100.00 AAA 1,482,699
Revenue Bonds, Central Valley Project, Series 2005AD,
5.000%, 12/01/22 - FSA Insured
2,500 El Centro Financing Authority, California, Water Revenue 10/16 at 100.00 AAA 2,553,175
Bonds, Series 2006A, 4.750%, 10/01/31 - FSA Insured
315 Healdsburg Public Financing Authority, California, Wastewater 4/16 at 100.00 AAA 330,769
Revenue Bonds, Series 2006, 5.000%, 4/01/36 - MBIA Insured
5,000 Orange County Water District, California, Revenue Certificates 8/13 at 100.00 AAA 5,184,950
of Participation, Series 2003B, 5.000%, 8/15/34 -
MBIA Insured
3,500 Placerville Public Financing Authority, California, Wastewater 9/16 at 100.00 AAA 3,669,015
System Refinancing and Improvement Project Revenue Bonds,
Series 2006, 5.000%, 9/01/34 - XLCA Insured
500 Sacramento County Sanitation District Financing Authority, 6/16 at 100.00 AAA 529,440
California, Revenue Bonds, Series 2006, 5.000%, 12/01/31 -
FGIC Insured
2,000 San Francisco City and County Public Utilities Commission, 4/13 at 100.00 AAA 2,169,260
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 10,883,800
Revenue Certificates of Participation, Series 1997A,
5.550%, 8/01/27 - AMBAC Insured (5)
------------------------------------------------------------------------------------------------------------------------------------
29,565 Total Water and Sewer 31,607,098
------------------------------------------------------------------------------------------------------------------------------------
$ 189,930 Total Investments (cost $179,724,723) - 151.5% 193,599,721
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.7% 2,192,219
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (53.2)% (68,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 127,791,940
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Optional Call Provisions (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. Certain
mortgage-backed securities may be subject to periodic
principal paydowns.
(3) Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating. Ratings below BBB
by Standard & Poor's Group or Baa by Moody's Investor
Service, Inc. are considered to be below investment
grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
(5) The issuer has received a preliminary adverse
determination from the Internal Revenue Service (the
"IRS") regarding the tax-exempt status of the bonds'
coupon payments. The Fund will continue to treat coupon
payments as tax-exempt income until such time that it
is formally determined that the interest on the bonds
should be treated as taxable.
N/R Not rated.
(ETM) Escrowed to maturity.
See accompanying notes to financial statements.
35
Nuveen California Investment Quality Municipal Fund, Inc. (NQC)
Portfolio of
INVESTMENTS August 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 3.8% (2.5% OF TOTAL INVESTMENTS)
California County Tobacco Securitization Agency, Tobacco
Settlement Asset-Backed Bonds, Sonoma
County Tobacco Securitization Corporation, Series 2005:
$ 790 4.250%, 6/01/21 6/15 at 100.00 BBB $ 768,164
3,500 5.250%, 6/01/45 6/15 at 100.00 BBB 3,551,205
3,500 Tobacco Securitization Authority of Northern California, 6/15 at 100.00 BBB 3,604,300
Tobacco Settlement Asset-Backed Bonds, Series 2005A-1,
5.375%, 6/01/38
------------------------------------------------------------------------------------------------------------------------------------
7,790 Total Consumer Staples 7,923,669
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 16.2% (10.7% OF TOTAL INVESTMENTS)
California Educational Facilities Authority, Revenue Bonds,
Chapman University, Series 1996:
1,675 5.130%, 10/1/26 10/06 at 102.00 Aaa 1,710,677
575 5.130%, 10/1/26 10/06 at 102.00 Aaa 587,138
2,000 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 Aaa 2,115,860
Occidental College, Series 2005A, 5.000%, 10/01/27 -
MBIA Insured
170 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 A3 174,551
University of Redlands, Series 2005A, 5.000%, 10/01/35
California Educational Facilities Authority, Revenue Bonds,
University of the Pacific, Series 2006:
120 5.000%, 11/01/21 11/15 at 100.00 A2 127,094
160 5.000%, 11/01/25 11/15 at 100.00 A2 167,970
2,070 5.750%, 11/1/30 11/10 at 100.00 Aaa 2,252,533
930 5.750%, 11/1/30 11/10 at 100.00 Aaa 998,485
6,000 California State Public Works Board, Lease Revenue Bonds, 10/07 at 102.00 A2 6,193,860
California State University Projects, Series 1997C,
5.400%, 10/01/22
2,500 Long Beach Bond Financing Authority, California, Lease Revenue 11/11 at 101.00 AAA 2,642,600
Refunding Bonds, Long Beach Aquarium of the South Pacific,
Series 2001, 5.250%, 11/01/30 - AMBAC Insured
University of California, Revenue Bonds, Multi-Purpose Projects,
Series 2003A:
9,270 5.125%, 5/15/16 - AMBAC Insured 5/13 at 100.00 AAA 10,029,862
3,000 5.125%, 5/15/17 - AMBAC Insured 5/13 at 100.00 AAA 3,235,950
1,060 5.000%, 5/15/24 - AMBAC Insured 5/13 at 100.00 AAA 1,116,138
2,540 University of California, Revenue Bonds, Research Facilities, 9/09 at 101.00 AAA 2,643,200
Series 2001E, 5.000%, 9/01/25 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
32,070 Total Education and Civic Organizations 33,995,918
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 11.1% (7.4% OF TOTAL INVESTMENTS)
3,000 California Health Facilities Financing Authority, Revenue 7/14 at 100.00 A- 3,168,240
Bonds, Catholic Healthcare West, Series 2004G,
5.250%, 7/01/23
1,190 California Health Facilities Financing Authority, Revenue 11/15 at 100.00 A3 1,220,464
Bonds, Cedars-Sinai Medical Center, Series 2005,
5.000%, 11/15/34
5,515 California Statewide Community Development Authority, 3/16 at 100.00 A+ 5,645,706
Revenue Bonds, Kaiser Permanante System, Series 2006,
5.000%, 3/01/41
1,840 California Statewide Community Development Authority, 8/16 at 100.00 A+ 1,945,579
Revenue Bonds, Kaiser Permanente System, Series 2001C,
5.250%, 8/01/31
2,145 California Statewide Community Development Authority, No Opt. Call A+ 2,186,806
Revenue Bonds, Kaiser Permanente System, Series 2002E,
4.700%, 11/01/36 (Mandatory put 6/01/09)
36
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
Central California Joint Powers Health Finance Authority,
Certificates of Participation, Community Hospitals of Central
California, Series 1993:
$ 1,390 5.250%, 2/01/13 2/07 at 100.00 Baa2 $ 1,390,945
6,820 5.500%, 2/01/15 2/07 at 100.00 Baa2 6,825,729
1,000 Stockton, California, Health Facility Revenue Bonds, 12/07 at 102.00 BBB+ 1,036,830
Dameron Hospital Association, Series 1997A, 5.700%, 12/01/14
------------------------------------------------------------------------------------------------------------------------------------
22,900 Total Health Care 23,420,299
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 2.5% (1.7% OF TOTAL INVESTMENTS)
3,000 California Statewide Community Development Authority, 7/08 at 101.00 BBB 3,039,360
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- 2,199,560
Mobile Home Park Revenue Bonds, Franciscan Mobile Home
Park Project, Series 2002A, 5.850%, 12/15/32
------------------------------------------------------------------------------------------------------------------------------------
5,000 Total Housing/Multifamily 5,238,920
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.5% (0.4% OF TOTAL INVESTMENTS)
1,250 California Pollution Control Financing Authority, Solid Waste 1/16 at 102.00 BBB 1,288,125
Disposal Revenue Bonds, Waste Management Inc.,
Series 2002A, 5.000%, 1/01/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.4% (0.9% OF TOTAL INVESTMENTS)
2,780 California Statewide Community Development Authority, 4/09 at 101.00 BBB 2,845,247
Certificates of Participation, Internext Group, Series 1999,
5.375%, 4/01/17
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 16.1% (10.7% OF TOTAL INVESTMENTS)
2,000 California, General Obligation Bonds, Series 2003, 5.250%, 2/01/20 8/13 at 100.00 A+ 2,156,580
California, General Obligation Bonds, Series 2004:
1,000 5.000%, 2/01/21 2/14 at 100.00 A+ 1,052,120
3,150 5.250%, 4/01/34 4/14 at 100.00 A+ 3,343,883
2,395 Fontana Unified School District, San Bernardino County, 5/09 at 102.00 AAA 2,572,014
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 3,716,760
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 10,605,956
Series 2001A, 5.000%, 9/01/21
2,285 Moreno Valley Unified School District, Riverside County, 8/14 at 100.00 AAA 2,485,189
California, General Obligation Bonds, Series 2004A,
5.250%, 8/01/24 - FSA Insured
3,250 Puerto Rico, General Obligation and Public Improvement No Opt. Call AAA 3,750,793
Bonds, Series 2001A, 5.500%, 7/01/20 - MBIA Insured
20 Riverside Community College District, California, General 8/14 at 100.00 AAA 21,795
Obligation Bonds, Series 2004A, 5.250%, 8/01/21 -
MBIA Insured
345 Roseville Joint Union High School District, Placer County, 8/15 at 100.00 AAA 365,207
California, General Obligation Bonds, Series 2006B,
5.000%, 8/01/27 - FGIC Insured
3,500 San Diego Unified School District, San Diego County, 7/13 at 101.00 AAA 3,835,300
California, General Obligation Bonds, Series 2003E,
5.250%, 7/01/24 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
31,005 Total Tax Obligation/General 33,905,597
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 32.4% (21.5% OF TOTAL INVESTMENTS)
3,135 California State Public Works Board, Lease Revenue Bonds, 12/12 at 100.00 AAA 3,396,647
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 3,321,360
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 3,170,580
Department of Mental Health, Hospital Addition, Series 2001A,
5.000%, 12/01/21 - AMBAC Insured
2,350 California, Economic Recovery Revenue Bonds, Series 2004A, 7/14 at 100.00 AA- 2,547,682
5.000%, 7/01/15
37
Nuveen California Investment Quality Municipal Fund, Inc. (NQC) (continued)
Portfolio of INVESTMENTS August 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 425 Capistrano Unified School District, Orange County, California, 9/15 at 100.00 AAA $ 450,428
Special Tax Bonds, Community Facilities District, Series 2005,
5.000%, 9/01/24 - FGIC Insured
1,595 Fontana Public Financing Authority, California, Tax Allocation 9/11 at 101.00 AAA 1,710,334
Revenue Bonds, North Fontana Redevelopment Project,
Series 2003A, 5.375%, 9/01/25 - AMBAC Insured
1,770 Hawthorne Community Redevelopment Agency, California, 9/16 at 100.00 AAA 1,867,633
Project Area 2 Tax Allocation Bonds, Series 2006,
5.000%, 9/01/26 - XLCA Insured
Hesperia Community Redevelopment Agency, California,
Tax Allocation Bonds, Series 2005A:
325 5.000%, 9/01/20 - XLCA Insured 9/15 at 100.00 AAA 345,950
3,840 5.000%, 9/01/35 - XLCA Insured 9/15 at 100.00 AAA 3,987,994
Irvine, California, Unified School District, Community Facilities
District Special Tax Bonds, Series 2006A:
205 5.000%, 9/01/26 9/06 at 103.00 N/R 206,847
470 5.125%, 9/01/36 9/06 at 103.00 N/R 475,132
770 Los Angeles Community Redevelopment Agency, California, 9/15 at 100.00 Aaa 800,430
Lease Revenue Bonds, Manchester Social Services Project,
Series 2005, 5.000%, 9/01/37 - AMBAC Insured
6,500 Los Angeles County Metropolitan Transportation Authority, 7/10 at 101.00 AAA 6,972,225
California, Proposition C Second Senior Lien Sales Tax Revenue
Bonds, Series 2000A, 5.250%, 7/01/30 (Pre-refunded 7/01/10) -
FGIC Insured
1,250 Los Angeles County Public Works Financing Authority, 12/15 at 100.00 AAA 1,322,475
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 4,357,439
California, Special Tax Bonds, Community Facilities
District 89-2, Series 2001C, 5.000%, 9/01/23 - MBIA Insured
3,890 Ontario Redevelopment Financing Authority, California, 8/11 at 101.00 AAA 4,130,285
Lease Revenue Bonds, Capital Projects, Series 2001,
5.000%, 8/01/21 - AMBAC Insured
3,600 Ontario Redevelopment Financing Authority, San Bernardino No Opt. Call AAA 4,877,460
County, California, Revenue Refunding Bonds, Redevelopment
Project 1, Series 1995, 7.400%, 8/01/25 - MBIA Insured
1,685 Ontario, California, Special Tax Bonds, Community Facilities 9/06 at 102.00 N/R 1,731,506
District 5, Freeway Interchange Project, Series 1997,
6.375%, 9/01/17
1,500 Orange County, California, Special Tax Bonds, Community 8/12 at 101.00 N/R 1,562,070
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 1,052,770
Bonds, Redevelopment Project Area 1, Series 2003,
5.000%, 8/01/23 - MBIA Insured
370 Rialto Redevelopment Agency, California, Tax Allocation Bonds, 9/15 at 100.00 AAA 384,818
Merged Project Area, Series 2005A, 5.000%, 9/01/35 -
XLCA Insured
460 Roseville, California, Certificates of Participation, Public 8/13 at 100.00 AAA 480,051
Facilities, Series 2003A, 5.000%, 8/01/25 - AMBAC Insured
4,000 Sacramento City Financing Authority, California, Lease Revenue No Opt. Call AAA 4,530,360
Refunding Bonds, Series 1993A, 5.400%, 11/01/20 -
AMBAC Insured
2,000 San Jose Financing Authority, California, Lease Revenue 6/12 at 100.00 AAA 2,153,220
Refunding Bonds, Civic Center Project, Series 2002B,
5.250%, 6/01/19 - AMBAC Insured
3,535 San Jose Financing Authority, California, Lease Revenue 9/11 at 100.00 AAA 3,720,269
Refunding Bonds, Convention Center Project, Series 2001F,
5.000%, 9/01/20 - MBIA Insured
2,840 Santa Clara Redevelopment Agency, California, Tax Allocation 6/13 at 100.00 AAA 2,971,293
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 5,590,043
Subordinate Lien Tax Allocation Bonds, Live Oak and Soquel
Community Improvement Projects, Series 2000,
5.250%, 9/01/25 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
62,895 Total Tax Obligation/Limited 68,117,301
------------------------------------------------------------------------------------------------------------------------------------
38
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 30.7% (20.3% OF TOTAL INVESTMENTS)
$ 13,000 Alameda Corridor Transportation Authority, California, Senior 10/09 at 101.00 AAA $ 13,383,240
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 4,107,268
2,605 5.000%, 4/01/16 4/11 at 100.00 AA 2,752,677
2,080 Bay Area Toll Authority, California, Revenue Bonds, 4/16 at 100.00 AA 2,194,130
San Francisco Bay Area Toll Bridge, Series 2006,
5.000%, 4/01/31
6,500 Foothill/Eastern Transportation Corridor Agency, California, 1/14 at 101.00 BBB- 5,831,020
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 10,602,952
5.500%, 5/15/25 (Alternative Minimum Tax)
9,000 Port of Oakland, California, Revenue Bonds, Series 2000K, 5/10 at 100.00 AAA 9,523,800
5.750%, 11/01/29 - FGIC Insured (Alternative Minimum Tax)
15,000 San Francisco Airports Commission, California, Revenue 5/10 at 101.00 AAA 16,066,200
Bonds, San Francisco International Airport, Second
Series 2000, Issue 24A, 5.750%, 5/01/30 - FSA Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
62,040 Total Transportation 64,461,287
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 23.3% (15.5% OF TOTAL INVESTMENTS) (4)
California Department of Water Resources, Power Supply
Revenue Bonds, Series 2002A:
3,600 5.375%, 5/01/17 (Pre-refunded 5/01/12) - XLCA Insured 5/12 at 101.00 AAA 3,966,804
6,000 5.125%, 5/01/18 (Pre-refunded 5/01/12) 5/12 at 101.00 Aaa 6,534,900
1,000 California Health Facilities Financing Authority, Revenue Bonds, 12/09 at 101.00 A3 (4) 1,088,850
Cedars-Sinai Medical Center, Series 1999A, 6.125%, 12/01/30
(Pre-refunded 12/01/09)
2,110 California Health Facilities Financing Authority, Revenue Bonds, 10/08 at 101.00 AAA 2,200,962
Kaiser Permanente System, Series 1998B,
5.250%, 10/01/12 (ETM)
11,300 California, Various Purpose General Obligation Bonds, 3/10 at 101.00 AAA 12,225,018
Series 2000, 5.750%, 3/01/27 (Pre-refunded 3/01/10) -
MBIA Insured
2,250 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 2,504,340
Enhanced Tobacco Settlement Asset-Backed Bonds,
Series 2003B, 5.625%, 6/01/33 (Pre-refunded 6/01/13)
2,500 Los Angeles Community Redevelopment Agency, California, 1/07 at 100.00 BBB (4) 2,566,850
Tax Allocation Refunding Bonds, Central Business District
Redevelopment Project, Series 1987G, 6.750%, 7/01/10 (ETM)
8,005 Los Angeles County Metropolitan Transportation Authority, 7/10 at 101.00 AAA 8,586,563
California, Proposition C Second Senior Lien Sales Tax
Revenue Bonds, Series 2000A, 5.250%, 7/01/25
(Pre-refunded 7/01/10) - FGIC Insured
2,745 Northridge Water District, California, Revenue Certificates 2/11 at 101.00 AAA 2,964,875
of Participation, Series 2001, 5.250%, 2/01/21
(Pre-refunded 2/01/11) - AMBAC Insured
4,000 Puerto Rico Highway and Transportation Authority, Highway 7/12 at 100.00 AAA 4,360,480
Revenue Bonds, Series 2002D, 5.375%, 7/01/36
(Pre-refunded 7/01/12)
815 Riverside Community College District, California, General 8/14 at 100.00 AAA 904,047
Obligation Bonds, Series 2004A, 5.250%, 8/01/21
(Pre-refunded 8/01/14) - MBIA Insured
1,000 Tobacco Securitization Authority of Southern California, 6/12 at 100.00 AAA 1,097,020
Tobacco Settlement Asset-Backed Bonds, San Diego
County Tobacco Asset Securitization Corporation, Senior
Series 2001A, 5.500%, 6/01/36 (Pre-refunded 6/01/12)
------------------------------------------------------------------------------------------------------------------------------------
45,325 Total U.S. Guaranteed 49,000,709
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 4.9% (3.2% OF TOTAL INVESTMENTS)
5,000 Los Angeles Department of Water and Power, California, 7/11 at 100.00 AAA 5,322,800
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 744,079
Power System Revenue Bonds, Series 2003A-2,
5.000%, 7/01/21 - MBIA Insured
740 Merced Irrigation District, California, Electric System Revenue 9/15 at 100.00 AAA 780,922
Bonds, Series 2005, 5.125%, 9/01/31 - XLCA Insured
39
Nuveen California Investment Quality Municipal Fund, Inc. (NQC) (continued)
Portfolio of INVESTMENTS August 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES (continued)
$ 3,210 Turlock Irrigation District, California, Electric Revenue 1/13 at 100.00 AAA $ 3,439,772
Bonds, Series 2003A, 5.000%, 1/01/16 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
9,650 Total Utilities 10,287,573
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 7.8% (5.2% OF TOTAL INVESTMENTS)
3,330 California Department of Water Resources, Water System 12/11 at 100.00 AA 3,630,333
Revenue Bonds, Central Valley Project, Series 2001W,
5.500%, 12/01/16
520 Healdsburg Public Financing Authority, California, Wastewater 4/16 at 100.00 AAA 546,031
Revenue Bonds, Series 2006, 5.000%, 4/01/36 - MBIA Insured
1,500 Los Angeles Department of Water and Power, California, 7/14 at 100.00 AAA 1,637,595
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 3,227,527
Bonds, Series 2003, 5.000%, 6/01/17 - FGIC Insured
870 Sacramento County Sanitation District Financing Authority, 6/16 at 100.00 AAA 918,381
California, Revenue Bonds, Series 2006, 5.000%, 12/01/36 -
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 1,338,151
1,310 5.000%, 3/01/17 - FSA Insured 3/12 at 101.00 AAA 1,398,346
3,430 Westlands Water District, California, Revenue Certificates 9/12 at 101.00 AAA 3,691,160
of Participation, Series 2002, 5.250%, 9/01/22 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
15,220 Total Water and Sewer 16,387,524
------------------------------------------------------------------------------------------------------------------------------------
$ 297,925 Total Investments (cost $298,288,987) - 150.7% 316,872,169
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.6% 5,370,291
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (53.3)% (112,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 210,242,460
====================================================================================================================
FORWARD SWAPS OUTSTANDING AT AUGUST 31, 2006:
RATE RATE FIXED RATE FLOATING RATE UNREALIZED
NOTIONAL PAID RECEIVED PAYMENT PAYMENT EFFECTIVE TERMINATION APPRECIATION
COUNTERPARTY AMOUNT BY THE FUND (5) BY THE FUND (5) FREQUENCY FREQUENCY DATE (6) DATE (DEPRECIATION)
------------------------------------------------------------------------------------------------------------------------------------
Goldman Sachs $15,000,000 5.681% 3 Month USD-LIBOR Semi-Annually Quarterly 7/27/07 7/27/12 $(325,719)
JPMorgan 27,000,000 5.630% 3 Month USD-LIBOR Semi-Annually Quarterly 7/27/07 7/27/10 (395,211)
JPMorgan 7,600,000 3 Month USD-LIBOR 5.869% Semi-Annually Quarterly 7/27/07 7/27/34 464,113
Morgan Stanley 6,100,000 3 Month USD-LIBOR 5.811% Semi-Annually Quarterly 7/27/07 7/27/24 268,812
Morgan Stanley 13,900,000 3 Month USD-LIBOR 5.816% Semi-Annually Quarterly 7/27/07 7/27/29 684,129
------------------------------------------------------------------------------------------------------------------------------------
$ 696,124
====================================================================================================================================
USD-LIBOR (United States Dollar-London Inter-Bank Offered Rates)
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Optional Call Provisions (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. Certain
mortgage-backed securities may be subject to periodic
principal paydowns.
(3) Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating. Ratings below BBB
by Standard & Poor's Group or Baa by Moody's Investor
Service, Inc. are considered to be below investment
grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
(5) Represents the annualized rate paid or received by the
Fund.
(6) Effective date represents the date on which both the
Fund and counterparty commence interest payment
accruals on each forward swap contract.
N/R Not rated.
(ETM) Escrowed to maturity.
See accompanying notes to financial statements.
40
Nuveen California Select Quality Municipal Fund, Inc. (NVC)
Portfolio of
INVESTMENTS August 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 5.2% (3.5% OF TOTAL INVESTMENTS)
$ 1,355 California County Tobacco Securitization Agency, Tobacco 6/15 at 100.00 BBB $ 1,317,548
Settlement Asset-Backed Bonds, Sonoma County Tobacco
Securitization Corporation, Series 2005, 4.250%, 6/01/21
4,625 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 Baa3 4,750,569
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+ 9,279,747
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 3,387,060
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.750%, 6/01/39
------------------------------------------------------------------------------------------------------------------------------------
18,130 Total Consumer Staples 18,734,924
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 2.7% (1.8% OF TOTAL INVESTMENTS)
290 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 A3 297,763
University of Redlands, Series 2005A, 5.000%, 10/01/35
California Educational Facilities Authority, Revenue Bonds,
University of the Pacific, Series 2006:
200 5.000%, 11/01/21 11/15 at 100.00 A2 211,824
270 5.000%, 11/01/25 11/15 at 100.00 A2 283,449
1,595 California Infrastructure Economic Development Bank, 10/12 at 100.00 Aa3 1,669,502
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 1,821,467
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 5,333,229
Series 2001E, 5.000%, 9/01/22 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
9,220 Total Education and Civic Organizations 9,617,234
------------------------------------------------------------------------------------------------------------------------------------
ENERGY - 2.7% (1.8% OF TOTAL INVESTMENTS)
9,500 California Pollution Control Financing Authority, Exempt 12/06 at 102.00 AAA 9,729,520
Facilities Revenue Bonds, Mobil Oil Corporation, Series 1996,
5.500%, 12/01/29 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 9.3% (6.1% OF TOTAL INVESTMENTS)
1,750 ABAG Finance Authority for Non-Profit Corporations, California, 4/12 at 100.00 A 1,858,098
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 Health 1/07 at 100.00 AAA 545,278
Facility Revenue Refunding Bonds, Catholic Healthcare West,
Series 1994A, 4.750%, 7/01/19 - MBIA Insured
2,040 California Health Facilities Financing Authority, Revenue Bonds, 11/15 at 100.00 A3 2,092,224
Cedars-Sinai Medical Center, Series 2005, 5.000%, 11/15/34
5,000 California Statewide Community Development Authority, 7/07 at 102.00 AA- 5,140,850
Certificates of Participation Refunding, St. Joseph Health
System, Series 1997, 5.125%, 7/01/17
1,845 California Statewide Community Development Authority, 7/10 at 101.00 A- 2,025,570
Certificates of Participation, Catholic Healthcare West,
Series 1999, 6.500%, 7/01/20
9,435 California Statewide Community Development Authority, 3/16 at 100.00 A+ 9,658,610
Revenue Bonds, Kaiser Permanante System, Series 2006,
5.000%, 3/01/41
3,140 California Statewide Community Development Authority, 8/16 at 100.00 A+ 3,320,173
Revenue Bonds, Kaiser Permanente System, Series 2001C,
5.250%, 8/01/31
1,355 California Statewide Community Development Authority, No Opt. Call AAA 1,451,801
Revenue Bonds, Sherman Oaks Health System, Series 1998A,
5.000%, 8/01/22 - AMBAC Insured
41
Nuveen California Select Quality Municipal Fund, Inc. (NVC) (continued)
Portfolio of INVESTMENTS August 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 6,000 Madera County, California, Certificates of Participation, 9/06 at 101.00 AAA $ 6,062,700
Valley Children's Hospital Project, Series 1995,
5.750%, 3/15/28 - MBIA Insured
1,050 Stockton, California, Health Facility Revenue Bonds, Dameron 12/07 at 102.00 BBB+ 1,087,863
Hospital Association, Series 1997A, 5.450%, 12/01/10
------------------------------------------------------------------------------------------------------------------------------------
32,160 Total Health Care 33,243,167
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.8% (1.2% OF TOTAL INVESTMENTS)
1,000 Independent Cities Lease Finance Authority, California, 11/14 at 100.00 N/R 1,057,220
Revenue Bonds, Morgan Hill, Hacienda Valley Mobile Home
Park, Series 2004A, 5.950%, 11/15/39
4,750 Montclair Redevelopment Agency, California, Revenue Bonds, 12/10 at 102.00 N/R 5,216,640
Monterey Manor Mobile Home Estates Project, Series 2000,
6.400%, 12/15/30
------------------------------------------------------------------------------------------------------------------------------------
5,750 Total Housing/Multifamily 6,273,860
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 1.2% (0.8% OF TOTAL INVESTMENTS)
100 California Housing Finance Agency, Single Family Mortgage 10/06 at 101.00 AAA 101,113
Bonds, Mezzanine Series 1995B-2, 6.250%, 8/01/14 -
AMBAC Insured (Alternative Minimum Tax)
120 California Housing Finance Agency, Single Family Mortgage 11/06 at 101.00 AAA 121,366
Bonds, Senior Series 1995A-2, 6.350%, 8/01/15
(Alternative Minimum Tax)
635 California Housing Finance Agency, Single Family Mortgage 10/06 at 101.00 AAA 642,068
Bonds, Senior Series 1995B-2, 6.250%, 2/01/18 (Alternative
Minimum Tax)
3,560 Puerto Rico Housing Bank and Finance Agency, Affordable 10/06 at 101.00 AAA 3,604,785
Housing Mortgage Subsidy Program Single Family Mortgage
Revenue Bonds, Series 1995I, 6.250%, 4/01/29
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
4,415 Total Housing/Single Family 4,469,332
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 2.1% (1.4% OF TOTAL INVESTMENTS)
5,000 California Pollution Control Financing Authority, Solid Waste No Opt. Call BBB+ 5,330,100
Disposal Revenue Bonds, Republic Services Inc.,
Series 2002C, 5.250%, 6/01/23 (Mandatory put 12/01/17)
(Alternative Minimum Tax)
2,000 California Pollution Control Financing Authority, Solid Waste 1/16 at 102.00 BBB 2,061,000
Disposal Revenue Bonds, Waste Management Inc.,
Series 2002A, 5.000%, 1/01/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
7,000 Total Industrials 7,391,100
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 20.5% (13.6% OF TOTAL INVESTMENTS)
California, General Obligation Bonds, Series 2003:
3,750 5.250%, 11/01/19 - RAAI Insured 11/13 at 100.00 AA 4,056,375
5,000 5.250%, 2/01/22 8/13 at 100.00 A+ 5,372,650
1,000 5.250%, 2/01/22 - CIFG Insured 8/13 at 100.00 AAA 1,077,980
California, General Obligation Bonds, Series 2004:
3,800 5.000%, 2/01/21 2/14 at 100.00 A+ 3,998,056
1,850 5.200%, 4/01/26 4/14 at 100.00 A+ 1,974,098
4,700 California, Various Purpose General Obligation Bonds, 5/10 at 101.00 AAA 5,047,236
Series 2000, 5.625%, 5/01/22 - FGIC Insured
3,850 Coachella Valley Unified School District, Riverside County, 8/15 at 100.00 AAA 4,060,865
California, General Obligation Bonds, Series 2005A,
5.000%, 8/01/30 - FGIC Insured
1,880 Compton Community College District, Los Angeles County, 7/14 at 100.00 AAA 2,047,151
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 1,602,374
1,040 5.250%, 5/01/20 - MBIA Insured 5/14 at 100.00 AAA 1,130,771
1,520 Jurupa Unified School District, Riverside County, California, 8/13 at 100.00 AAA 1,603,767
General Obligation Bonds, Series 2004, 5.000%, 8/01/23 -
FGIC Insured
4,000 Long Beach Community College District, California, General 5/15 at 100.00 AAA 4,213,880
Obligation Bonds, Series 2005B, 5.000%, 5/01/30 -
FGIC Insured
10,060 Los Angeles, California, General Obligation Bonds, 9/11 at 100.00 AA 10,605,956
Series 2001A, 5.000%, 9/01/20
42
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
Los Rios Community College District, Sacramento, El Dorado and
Yolo Counties, California, General Obligation Bonds, Series 2006C:
$ 2,710 5.000%, 8/01/25 - FSA Insured 8/14 at 102.00 AAA $ 2,889,944
3,875 5.000%, 8/01/26 - FSA Insured 8/14 at 102.00 AAA 4,125,790
6,000 North Orange County Community College District, California, No Opt. Call AAA 2,317,500
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 2,279,376
General Obligation Bonds, Series 2001, 5.125%, 8/01/21 -
FSA Insured
5,000 Puerto Rico, General Obligation and Public Improvement Bonds, No Opt. Call AAA 5,770,450
Series 2001A, 5.500%, 7/01/20 - MBIA Insured
585 Roseville Joint Union High School District, Placer County, 8/15 at 100.00 AAA 619,263
California, General Obligation Bonds, Series 2006B,
5.000%, 8/01/27 - FGIC Insured
1,500 Southwestern Community College District, San Diego County, 8/15 at 102.00 AAA 1,612,050
California, General Obligation Bonds, Series 2005,
5.000%, 8/01/25 - MBIA Insured
1,000 Vista Unified School District, San Diego County, California, 8/12 at 100.00 AAA 1,054,940
General Obligation Bonds, Series 2002A, 5.000%, 8/01/23 -
FSA Insured
3,760 West Contra Costa Unified School District, Contra Costa County, 8/11 at 101.00 AAA 3,974,395
California, General Obligation Bonds, Series 2003B,
5.000%, 8/01/22 - FSA Insured
2,000 West Contra Costa Unified School District, Contra Costa County, 8/11 at 101.00 AAA 2,114,040
California, General Obligation Bonds, Series 2003C,
5.000%, 8/01/22 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
72,550 Total Tax Obligation/General 73,548,907
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 33.2% (21.9% OF TOTAL INVESTMENTS)
2,870 Bell Community Redevelopment Agency, California, Tax 10/13 at 100.00 AA 3,084,619
Allocation Bonds, Bell Project Area, Series 2003,
5.500%, 10/01/23 - RAAI Insured
3,765 California State Public Works Board, Lease Revenue Bonds, 12/12 at 100.00 AAA 4,090,183
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 4,420,040
2,000 5.500%, 6/01/23 6/14 at 100.00 A 2,201,600
3,625 California, Economic Recovery Revenue Bonds, 7/14 at 100.00 AA- 3,929,935
Series 2004A, 5.000%, 7/01/15
730 Capistrano Unified School District, Orange County, California, 9/15 at 100.00 AAA 773,676
Special Tax Bonds, Community Facilities District, Series 2005,
5.000%, 9/01/24 - FGIC Insured
3,000 Coronado Community Development Agency, California, 9/15 at 100.00 AAA 3,138,270
Tax Allocation Bonds, Community Development Project,
Series 2005, 5.000%, 9/01/30 - AMBAC Insured
1,030 Folsom Cordova Unified School District, Sacramento County, 10/14 at 100.00 AAA 1,087,752
California, General Obligation Bonds, School Facilities
Improvement District 2, Series 2004B, 5.000%, 10/01/25 -
FSA Insured
1,785 Hawthorne Community Redevelopment Agency, California, 9/16 at 100.00 AAA 1,913,395
Project Area 2 Tax Allocation Bonds, Series 2006,
5.250%, 9/01/36 - XLCA Insured
555 Hesperia Community Redevelopment Agency, California, 9/15 at 100.00 AAA 590,775
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 1,482,584
Bonds, Consolidated Whitewater Project Area, Series 2003A,
5.000%, 9/01/20 - AMBAC Insured
Irvine, California, Unified School District, Community Facilities
District Special Tax Bonds, Series 2006A:
350 5.000%, 9/01/26 9/06 at 103.00 N/R 353,154
805 5.125%, 9/01/36 9/06 at 103.00 N/R 813,791
3,000 La Quinta Redevelopment Agency, California, Tax Allocation 9/11 at 102.00 AAA 3,158,190
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 3,606,665
Revenue and Refunding Bonds, Civic Center Project,
Series 1997A, 5.000%, 10/01/27 - MBIA Insured
43
Nuveen California Select Quality Municipal Fund, Inc. (NVC) (continued)
Portfolio of INVESTMENTS August 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 4,315 Los Angeles Community Redevelopment Agency, California, 9/15 at 100.00 Aaa $ 4,485,529
Lease Revenue Bonds, Manchester Social Services Project,
Series 2005, 5.000%, 9/01/37 - AMBAC Insured
16,500 Los Angeles County Metropolitan Transportation Authority, 7/08 at 101.00 AAA 16,952,430
California, Proposition C Second Senior Lien Sales Tax Revenue
Refunding Bonds, Series 1998A, 5.000%, 7/01/23 -
AMBAC Insured
2,105 Los Angeles County Public Works Financing Authority, 12/15 at 100.00 AAA 2,227,048
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 2,163,789
3,000 5.000%, 8/01/26 - MBIA Insured 8/11 at 100.00 Aaa 3,098,100
2,580 Oakland Redevelopment Agency, California, Subordinate 3/13 at 100.00 AAA 2,839,084
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 3,692,962
Bonds, Elihu M. Harris State Office Building, Series 1998A,
5.000%, 4/01/23 - AMBAC Insured
2,280 Ontario Redevelopment Financing Authority, California, 8/11 at 101.00 AAA 2,452,573
Lease 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 1,050,300
Facilities District 03-1 of Ladera Ranch, Series 2004A,
5.500%, 8/15/24
1,120 Panama-Buena Vista Union School District, California, 9/16 at 100.00 AAA 1,192,083
Certificates of Participation, School Construction Project,
Series 2006, 5.000%, 9/01/23 - MBIA Insured
8,750 Pittsburg Redevelopment Agency, California, Tax Allocation No Opt. Call AAA 4,101,213
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 2,487,140
Appropriation Bonds, Series 2002E, 6.000%, 8/01/26 -
AGC Insured
635 Rialto Redevelopment Agency, California, Tax Allocation 9/15 at 100.00 AAA 660,432
Bonds, Merged Project Area, Series 2005A, 5.000%, 9/01/35 -
XLCA Insured
120 Riverside Public Financing Authority, California, Revenue 2/07 at 100.00 N/R 121,661
Bonds, Multiple Project Loans, Series 1991A,
8.000%, 2/01/18
1,680 Riverside Redevelopment Agency, California, Tax Allocation 8/13 at 100.00 AAA 1,793,702
Refunding Bonds, Merged Project Areas, Series 2003,
5.250%, 8/01/23 - MBIA Insured
820 Roseville, California, Certificates of Participation, Public 8/13 at 100.00 AAA 855,744
Facilities, Series 2003A, 5.000%, 8/01/25 - AMBAC Insured
2,200 San Jose Financing Authority, California, Lease Revenue 9/11 at 100.00 AAA 2,315,302
Refunding Bonds, Convention Center Project, Series 2001F,
5.000%, 9/01/20 - MBIA Insured
10,000 San Jose Redevelopment Agency, California, Tax Allocation 8/08 at 102.00 A 10,293,300
Bonds, Merged Area Redevelopment Project, Series 1998,
5.250%, 8/01/29
4,625 Santa Clara Redevelopment Agency, California, Tax Allocation 2/13 at 100.00 AAA 4,921,555
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 2,590,667
1,625 5.250%, 11/01/23 - MBIA Insured 11/12 at 100.00 AAA 1,743,203
6,870 Vernon Redevelopment Agency, California, Tax Allocation 9/15 at 100.00 AAA 7,145,143
Bonds, Industrial Redevelopment Project, Series 2005,
5.000%, 9/01/35 - MBIA Insured
5,000 West Hollywood, California, Refunding Certificates of 2/08 at 102.00 AAA 5,166,850
Participation, Series 1998, 5.000%, 2/01/25 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
117,750 Total Tax Obligation/Limited 118,994,439
------------------------------------------------------------------------------------------------------------------------------------
44
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 17.2% (11.3% OF TOTAL INVESTMENTS)
$ 2,210 Bay Area Toll Authority, California, Revenue Bonds, 4/16 at 100.00 AA $ 2,331,263
San Francisco Bay Area Toll Bridge, Series 2006,
5.000%, 4/01/31
8,300 Foothill/Eastern Transportation Corridor Agency, California, 1/10 at 100.00 AAA 8,540,534
Toll Road Revenue Bonds, Series 1995A, 5.000%, 1/01/35 -
MBIA Insured
10,500 Foothill/Eastern Transportation Corridor Agency, California, 1/14 at 101.00 BBB- 9,419,340
Toll Road Revenue Refunding Bonds, Series 1999,
0.000%, 1/15/29
2,000 Orange County Transportation Authority, California, Toll Road 8/13 at 100.00 AAA 2,129,340
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 8,465,600
5.750%, 11/01/29 - FGIC Insured (Alternative Minimum Tax)
20,000 San Francisco Airports Commission, California, Revenue 5/10 at 101.00 AAA 21,421,600
Bonds, San Francisco International Airport, Second
Series 2000, Issue 25, 5.750%, 5/01/30 - FSA Insured
(Alternative Minimum Tax)
5,000 San Francisco Airports Commission, California, Revenue 5/11 at 100.00 AAA 5,304,450
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 3,864,229
Refunding Bonds, San Francisco International Airport,
Second Series 2002, Issue 28A, 5.250%, 5/01/18 -
MBIA Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
59,675 Total Transportation 61,476,356
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 35.1% (23.2% OF TOTAL INVESTMENTS) (4)
3,740 Antelope Valley Community College District, Los Angeles 8/15 at 100.00 AAA 4,101,845
County, California, General Obligation Bonds, Series 2005A,
5.000%, 8/01/29 (Pre-refunded 8/01/15) - MBIA Insured
California Department of Water Resources, Power Supply
Revenue Bonds, Series 2002A:
2,500 5.375%, 5/01/17 (Pre-refunded 5/01/12) - XLCA Insured 5/12 at 101.00 AAA 2,754,725
9,750 5.125%, 5/01/18 (Pre-refunded 5/01/12) 5/12 at 101.00 Aaa 10,619,213
13,000 California Health Facilities Financing Authority, Revenue Bonds, 12/09 at 101.00 A3 (4) 14,155,050
Cedars-Sinai Medical Center, Series 1999A, 6.125%, 12/01/30
(Pre-refunded 12/01/09)
3,000 California Pollution Control Financing Authority, Solid Waste 1/07 at 100.00 Aaa 3,417,510
Disposal Revenue Bonds, North County Recycling Center,
Series 1991A, 6.750%, 7/01/17 (ETM)
4,495 California Statewide Community Development Authority, 7/10 at 101.00 A- (4) 5,007,924
Certificates of Participation, Catholic Healthcare West,
Series 1999, 6.500%, 7/01/20 (Pre-refunded 7/01/10)
10,000 California, Various Purpose General Obligation Bonds, 3/10 at 101.00 AAA 10,818,600
Series 2000, 5.750%, 3/01/27 (Pre-refunded 3/01/10) -
MBIA Insured
1,565 Contra Costa County, California, GNMA Mortgage-Backed No Opt. Call AAA 1,668,180
Securities Program Home Mortgage Revenue Bonds,
Series 1989, 7.700%, 11/01/09 (Alternative Minimum
Tax) (ETM)
5,515 Fresno Unified School District, Fresno County, California, 8/09 at 102.00 AAA 5,802,607
General Obligation Bonds, Series 2001E, 5.000%, 8/01/25 -
FGIC Insured (ETM)
Golden State Tobacco Securitization Corporation, California,
Enhanced Tobacco Settlement Asset-Backed Bonds,
Series 2003B:
2,000 5.625%, 6/01/33 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 2,226,080
2,500 5.625%, 6/01/38 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 2,782,600
3,000 Los Angeles County Metropolitan Transportation Authority, 7/10 at 101.00 AAA 3,217,950
California, Proposition C Second Senior Lien Sales Tax
Revenue Bonds, Series 2000A, 5.250%, 7/01/25
(Pre-refunded 7/01/10) - FGIC Insured
4,220 Los Angeles Unified School District, California, General 7/08 at 101.00 AAA 4,378,123
Obligation Bonds, Series 1998B, 5.000%, 7/01/23
(Pre-refunded 7/01/08) - FGIC Insured
6,030 Los Angeles Unified School District, California, General 7/10 at 100.00 AAA 6,442,030
Obligation Bonds, Series 2000D, 5.375%, 7/01/25
(Pre-refunded 7/01/10) - FGIC Insured
2,650 Los Angeles, California, Wastewater System Revenue Bonds, 6/08 at 101.00 AAA 2,746,195
Series 1998A, 5.000%, 6/01/28 (Pre-refunded 6/01/08) -
FGIC Insured
2,270 Pajaro Valley Unified School District, Santa Cruz County, 8/13 at 100.00 AAA 2,463,699
California, General Obligation Bonds, Series 2003A,
5.000%, 8/01/20 (Pre-refunded 8/01/13) - FSA Insured
45
Nuveen California Select Quality Municipal Fund, Inc. (NVC) (continued)
Portfolio of INVESTMENTS August 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 10,000 Puerto Rico Highway and Transportation Authority, Highway 7/10 at 101.00 BBB+ (4) $ 10,925,700
Revenue Bonds, Series 2000B, 6.000%, 7/01/31
(Pre-refunded 7/01/10)
4,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 4,291,640
Obligation Bonds, Series 2000A, 5.500%, 10/01/32 (ETM)
17,670 San Francisco City and County Public Utilities Commission, 11/11 at 100.00 AAA 18,913,791
California, Water Revenue Bonds, Series 2001A,
5.000%, 11/01/24 (Pre-refunded 11/01/11) - FSA Insured
6,555 Sweetwater Authority, California, Water Revenue Bonds, 4/10 at 101.00 AAA 6,953,675
Series 2002, 5.000%, 4/01/22 (Pre-refunded 4/01/10) -
FSA Insured
2,000 Vista, California, Mobile Home Park Revenue Bonds, Vista 3/24 at 100.00 N/R (4) 2,140,960
Manor Mobile Home Park Project, Series 1999A,
5.750%, 3/15/29 (Pre-refunded 3/15/24)
------------------------------------------------------------------------------------------------------------------------------------
116,460 Total U.S. Guaranteed 125,828,097
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 14.4% (9.5% OF TOTAL INVESTMENTS)
2,000 Anaheim Public Finance Authority, California, Revenue 10/12 at 100.00 AAA 2,161,200
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 1,959,035
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+ 12,175,637
Bonds, San Diego Gas and Electric Company, Series 1991A,
6.800%, 6/01/15 (Alternative Minimum Tax)
4,000 Imperial Irrigation District, California, Certificates of 11/13 at 100.00 AAA 4,279,080
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 5,368,450
Power System Revenue 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 1,275,564
Power System Revenue Bonds, Series 2003A-2,
5.000%, 7/01/21 - MBIA Insured
5,000 Los Angeles Department of Water and Power, California, 7/15 at 100.00 AAA 5,264,100
Power System Revenue Bonds, Series 2005A-1,
5.000%, 7/01/31 - FSA Insured
5,225 Los Angeles, California, Sanitation Equipment Charge 2/11 at 100.00 AAA 5,550,518
Revenue Bonds, Series 2001A, 5.250%, 2/01/18 - FSA Insured
1,025 Los Angeles, California, Sanitation Equipment Charge 2/14 at 100.00 AAA 1,085,127
Revenue Bonds, Series 2004A, 5.000%, 2/01/22 -
AMBAC Insured
1,260 Merced Irrigation District, California, Electric System Revenue 9/15 at 100.00 AAA 1,329,678
Bonds, Series 2005, 5.125%, 9/01/31 - XLCA Insured
2,630 Pasadena, California, Electric Works Revenue Bonds, 6/12 at 100.00 AAA 2,834,298
Series 2002, 5.250%, 6/01/21 - MBIA Insured
4,360 Sacramento Municipal Utility District, California, Electric 8/12 at 100.00 AAA 4,709,716
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 3,682,132
Magnolia Power Project, Series 2003-1A, 5.000%, 7/01/20 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
47,320 Total Utilities 51,674,535
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 6.0% (3.9% OF TOTAL INVESTMENTS)
1,185 Burbank, California, Wastewater System Revenue Bonds, 6/14 at 100.00 AAA 1,246,679
Series 2004A, 5.000%, 6/01/24 - AMBAC Insured
890 Healdsburg Public Financing Authority, California, Wastewater 4/16 at 100.00 AAA 934,553
Revenue Bonds, Series 2006, 5.000%, 4/01/36 - MBIA Insured
2,750 Los Angeles Department of Water and Power, California, 7/14 at 100.00 AAA 2,994,503
Waterworks Revenue Bonds, Series 2004C, 5.250%, 7/01/20 -
MBIA Insured
3,750 Metropolitan Water District of Southern California, Water 10/14 at 100.00 AAA 3,944,513
Revenue Bonds, Series 2004B-3, 5.000%, 10/01/29 -
MBIA Insured
44
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 2,000 Pico Rivera Water Authority, California, Revenue Bonds, 12/11 at 102.00 N/R $ 2,149,200
Series 2001A, 6.250%, 12/01/32
1,510 Sacramento County Sanitation District Financing Authority, 6/16 at 100.00 AAA 1,593,971
California, Revenue Bonds, Series 2006, 5.000%, 12/01/36 -
FGIC Insured
2,525 Sacramento County Sanitation District Financing Authority, No Opt. Call AAA 2,943,695
California, Revenue Refunding Bonds, Series 2001,
5.500%, 12/01/20 - AMBAC Insured
San Francisco City and County Public Utilities Commission,
California, Clean Water Revenue Refunding Bonds, Series 2003A:
2,120 5.250%, 10/01/19 - MBIA Insured 4/13 at 100.00 AAA 2,299,416
2,960 5.250%, 10/01/20 - MBIA Insured 4/13 at 100.00 AAA 3,210,502
------------------------------------------------------------------------------------------------------------------------------------
19,690 Total Water and Sewer 21,317,032
------------------------------------------------------------------------------------------------------------------------------------
$ 519,620 Total Investments (cost $509,948,074) - 151.4% 542,298,503
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.2% 7,832,437
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (53.6)% (192,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 358,130,940
====================================================================================================================
FORWARD SWAPS OUTSTANDING AT AUGUST 31, 2006:
RATE RATE FIXED RATE FLOATING RATE UNREALIZED
NOTIONAL PAID RECEIVED PAYMENT PAYMENT EFFECTIVE TERMINATION APPRECIATION
COUNTERPARTY AMOUNT BY THE FUND (5) BY THE FUND (5) FREQUENCY FREQUENCY DATE (6) DATE (DEPRECIATION)
------------------------------------------------------------------------------------------------------------------------------------
JPMorgan $34,700,000 5.630% 3 Month USD-LIBOR Semi-Annually Quarterly 7/27/07 7/27/10 $ (507,920)
JPMorgan 10,600,000 3 Month USD-LIBOR 5.869% Semi-Annually Quarterly 7/27/07 7/27/34 647,315
Morgan Stanley 12,000,000 3 Month USD-LIBOR 5.811% Semi-Annually Quarterly 7/27/07 7/27/24 528,811
Morgan Stanley 16,900,000 3 Month USD-LIBOR 5.816% Semi-Annually Quarterly 7/27/07 7/27/29 831,783
------------------------------------------------------------------------------------------------------------------------------------
$1,499,989
====================================================================================================================================
USD-LIBOR (United States Dollar-London Inter-Bank Offered Rates)
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Optional Call Provisions (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. Certain
mortgage-backed securities may be subject to periodic
principal paydowns.
(3) Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating. Ratings below BBB
by Standard & Poor's Group or Baa by Moody's Investor
Service, Inc. are considered to be below investment
grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
(5) Represents the annualized rate paid or received by the
Fund.
(6) Effective date represents the date on which both the
Fund and counterparty commence interest payment
accruals on each forward swap contract.
N/R Not rated.
(ETM) Escrowed to maturity.
See accompanying notes to financial statements.
47
Nuveen California Quality Income Municipal Fund, Inc. (NUC)
Portfolio of
INVESTMENTS August 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 5.9% (3.9% OF TOTAL INVESTMENTS)
$ 5,000 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 Baa3 $ 5,197,600
Settlement Asset-Backed Bonds, Alameda County Tobacco
Asset Securitization Corporation, Series 2002, 5.750%, 6/01/29
1,300 California County Tobacco Securitization Agency, Tobacco 6/15 at 100.00 BBB 1,264,068
Settlement Asset-Backed Bonds, Sonoma County Tobacco
Securitization Corporation, Series 2005, 4.250%, 6/01/21
4,620 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 Baa3 4,745,433
Settlement Asset-Backed Bonds, Stanislaus County Tobacco
Funding Corporation, Series 2002A, 5.500%, 6/01/33
8,880 California Statewide Financing Authority, Tobacco Settlement 5/12 at 100.00 Baa3 9,172,330
Asset-Backed Bonds, Pooled Tobacco Securitization Program,
Series 2002A, 5.625%, 5/01/29
------------------------------------------------------------------------------------------------------------------------------------
19,800 Total Consumer Staples 20,379,431
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 14.3% (9.5% OF TOTAL INVESTMENTS)
280 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 A3 287,496
University of Redlands, Series 2005A, 5.000%, 10/01/35
2,785 California Educational Facilities Authority, Revenue Bonds, 11/10 at 100.00 Aaa 2,990,087
University of the Pacific, Series 2000, 5.750%, 11/01/30 -
MBIA Insured
California Educational Facilities Authority, Revenue Bonds,
University of the Pacific, Series 2006:
195 5.000%, 11/01/21 11/15 at 100.00 A2 206,528
260 5.000%, 11/01/25 11/15 at 100.00 A2 272,951
4,000 California State Public Works Board, Lease Revenue Refunding 9/06 at 102.00 AAA 4,086,280
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 6,803,136
Series 2002A, 5.000%, 11/01/20 - AMBAC Insured
1,000 California Statewide Community Development Authority, 10/06 at 101.00 AAA 1,011,820
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 1,685,559
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 7,708,425
Projects, Series 2000K, 5.300%, 9/01/30
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 5,551,153
10,255 5.000%, 9/01/19 - FGIC Insured 9/10 at 101.00 AAA 10,812,359
University of California, Revenue Bonds, Research Facilities,
Series 2001E:
2,305 5.000%, 9/01/23 - AMBAC Insured 9/09 at 101.00 AAA 2,398,652
5,150 5.000%, 9/01/24 - AMBAC Insured 9/09 at 101.00 AAA 5,359,245
------------------------------------------------------------------------------------------------------------------------------------
47,010 Total Education and Civic Organizations 49,173,691
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 7.3% (4.8% OF TOTAL INVESTMENTS)
1,750 ABAG Finance Authority for Non-Profit Corporations, California, 4/12 at 100.00 A 1,858,098
Cal-Mortgage Insured Revenue Bonds, Sansum-Santa Barbara
Medical Foundation Clinic, Series 2002A, 5.500%, 4/01/21
3,565 California Health Facilities Financing Authority, Insured Health 11/06 at 100.00 A+ 3,570,490
Facility Revenue Refunding Bonds, Valley Memorial Hospital,
Series 1993A, 6.000%, 5/01/17
1,935 California Health Facilities Financing Authority, Revenue Bonds, 11/15 at 100.00 A3 1,984,536
Cedars-Sinai Medical Center, Series 2005, 5.000%, 11/15/34
48
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 1,225 California State Public Works Board, Revenue Bonds, 11/14 at 100.00 AAA $ 1,286,471
University of California - Davis Medical Center,
Series 2004II-A, 5.000%, 11/01/23 - MBIA Insured
945 California Statewide Community Development Authority, No Opt. Call A3 1,012,388
Certificates of Participation, Cedars-Sinai Medical Center,
Series 1992, 6.500%, 8/01/12
9,030 California Statewide Community Development Authority, 3/16 at 100.00 A+ 9,244,011
Revenue Bonds, Kaiser Permanante System, Series 2006,
5.000%, 3/01/41
3,015 California Statewide Community Development Authority, 8/16 at 100.00 A+ 3,188,001
Revenue Bonds, Kaiser Permanente System, Series 2001C,
5.250%, 8/01/31
3,000 California Statewide Community Development Authority, No Opt. Call A+ 3,058,470
Revenue Bonds, Kaiser Permanente System, Series 2002E,
4.700%, 11/01/36 (Mandatory put 6/01/09)
------------------------------------------------------------------------------------------------------------------------------------
24,465 Total Health Care 25,202,465
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 4.9% (3.2% OF TOTAL INVESTMENTS)
1,000 California Statewide Community Development Authority, 7/08 at 101.00 BBB 1,025,390
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- 3,299,340
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, Revenue 11/14 at 100.00 N/R 1,057,220
Bonds, Morgan Hill, Hacienda Valley Mobile Home Park,
Series 2004A, 5.950%, 11/15/39
2,285 Irvine, California, Mobile Home Park Revenue Bonds, Meadows 3/08 at 102.00 N/R 2,371,327
Mobile Home Park, Series 1998A, 5.700%, 3/01/18
2,365 Oceanside, California, Mobile Home Park Revenue Bonds, 3/08 at 102.00 N/R 2,453,191
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 3,153,210
Bonds, Bravo Mobile Home Park Project, Series 1999A,
5.900%, 3/20/29
1,680 Stanton, California, Multifamily Housing Revenue Bonds, 8/07 at 102.00 AAA 1,732,097
Continental Gardens Apartments, Series 1997,
5.625%, 8/01/29 (Mandatory put 8/01/09) (Alternative
Minimum Tax)
Yolo County Housing Authority, California, Revenue Refunding
Bonds, Russell Park Apartments, Series 1992A:
560 6.900%, 11/01/08 11/06 at 100.00 Aa2 561,030
1,030 7.000%, 11/01/14 11/06 at 100.00 Aa2 1,092,470
------------------------------------------------------------------------------------------------------------------------------------
15,960 Total Housing/Multifamily 16,745,275
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.6% (0.5% OF TOTAL INVESTMENTS)
2,000 California Pollution Control Financing Authority, Solid Waste 1/16 at 102.00 BBB 2,061,000
Disposal Revenue Bonds, Waste Management Inc.,
Series 2002A, 5.000%, 1/01/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 21.4% (14.1% OF TOTAL INVESTMENTS)
1,900 Azusa Unified School District, Los Angeles County, California, 7/12 at 100.00 AAA 2,061,880
General Obligation Bonds, Series 2002, 5.375%, 7/01/20 -
FSA Insured
80 California, General Obligation Bonds, Series 2000, 6/10 at 100.00 A+ 84,483
5.500%, 6/01/25
California, General Obligation Bonds, Series 2003:
3,750 5.250%, 11/01/19 - RAAI Insured 11/13 at 100.00 AA 4,056,375
500 5.250%, 2/01/33 2/13 at 100.00 A+ 526,800
California, General Obligation Bonds, Series 2004:
6,300 5.200%, 4/01/26 4/14 at 100.00 A+ 6,722,604
2,500 5.125%, 2/01/27 2/14 at 100.00 A+ 2,640,275
2,000 California, General Obligation Refunding Bonds, Series 2002, 4/12 at 100.00 A+ 2,096,380
5.250%, 4/01/32
6,865 California, General Obligation Veterans Welfare Bonds, 12/06 at 100.00 AA- 6,960,492
Series 1997BH, 5.600%, 12/01/32 (Alternative Minimum Tax)
49
Nuveen California Quality Income Municipal Fund, Inc. (NUC) (continued)
Portfolio of INVESTMENTS August 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 6,085 California, General Obligation Veterans Welfare Bonds, 12/06 at 102.00 AA- $ 6,225,624
Series 1997BJ, 5.700%, 12/01/32 (Alternative Minimum Tax)
1,370 Fremont-Newark Community College District, Alameda County, 8/11 at 101.00 AAA 1,483,888
California, General Obligation Bonds, Series 2002A,
5.375%, 8/01/20 - MBIA Insured
3,610 Hartnell Community College District, California, General 6/16 at 100.00 AAA 3,828,477
Obligation Bonds, Series 2006B, 5.000%, 6/01/29 -
FSA Insured
5,255 Livermore Valley Joint Unified School District, Alameda 8/11 at 100.00 AAA 5,504,402
County, California, General Obligation Bonds, Election of 1999,
Series 2001, 5.125%, 8/01/26 - FSA Insured
2,645 Long Beach Community College District, California, General 5/15 at 100.00 AAA 2,786,428
Obligation Bonds, Series 2005B, 5.000%, 5/01/30 -
FGIC Insured
1,170 Los Angeles Unified School District, California, General 7/13 at 100.00 AAA 1,253,374
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 2,583,074
California, General Obligation Bonds, Series 2004A,
5.250%, 8/01/24 - FSA Insured
565 Roseville Joint Union High School District, Placer County, 8/15 at 100.00 AAA 598,092
California, General Obligation Bonds, Series 2006B,
5.000%, 8/01/27 - FGIC Insured
1,500 Sacramento City Unified School District, Sacramento County, 7/15 at 100.00 Aaa 1,587,150
California, General Obligation Bonds, Series 2005,
5.000%, 7/01/27 - MBIA Insured
6,760 San Diego Unified School District, San Diego County, 7/13 at 101.00 AAA 7,407,608
California, General Obligation Bonds, Series 2003E,
5.250%, 7/01/21 - FSA Insured
515 San Joaquin Delta Community College District, California, 8/15 at 100.00 AAA 543,989
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 1,591,290
California, General Obligation Bonds, Series 2005B,
5.000%, 8/01/25 - FGIC Insured
6,865 San Ramon Valley Unified School District, Contra Costa 8/13 at 100.00 AAA 7,243,330
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 1,470,036
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 4,139,972
County, California, General Obligation Bonds, Series 2003B,
5.000%, 8/01/23 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
69,425 Total Tax Obligation/General 73,396,023
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 30.2% (19.9% OF TOTAL INVESTMENTS)
1,655 Bell Community Housing Authority, California, Lease Revenue 10/15 at 100.00 AAA 1,724,229
Bonds, Series 2005, 5.000%, 10/01/36 - AMBAC Insured
1,200 Burbank Public Financing Authority, California, Revenue Bonds, 12/12 at 100.00 AAA 1,264,092
West Olive Redevelopment Project, Series 2002,
5.125%, 12/01/22 - AMBAC Insured
2,000 California State Public Works Board, Lease Revenue Bonds, No Opt. Call AAA 2,192,360
Department of Corrections, Susanville State Prison,
Series 1993D, 5.250%, 6/01/15 - FSA Insured
3,070 California State Public Works Board, Lease Revenue Bonds, 12/12 at 100.00 AAA 3,335,156
Department of General Services, Capital East End Project,
Series 2002A, 5.250%, 12/01/16 - AMBAC Insured
2,030 California State Public Works Board, Lease Revenue Bonds, 3/12 at 100.00 AAA 2,159,331
Department of General Services, Series 2002C,
5.250%, 3/01/21 - AMBAC Insured
5,115 California State Public Works Board, Lease Revenue Bonds, 6/14 at 100.00 A 5,662,919
Department of Mental Health, Coalinga State Hospital,
Series 2004A, 5.500%, 6/01/20
2,715 California, Economic Recovery Revenue Bonds, Series 2004A, 7/14 at 100.00 AA- 2,943,386
5.000%, 7/01/15
690 Capistrano Unified School District, Orange County, California, 9/15 at 100.00 AAA 731,283
Special Tax Bonds, Community Facilities District, Series 2005,
5.000%, 9/01/24 - FGIC Insured
50
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
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 $ 1,041,580
2,765 5.700%, 8/01/28 8/08 at 102.00 N/R 2,884,586
1,250 Coronado Community Development Agency, California, Tax 9/15 at 100.00 AAA 1,307,612
Allocation Bonds, Community Development Project,
Series 2005, 5.000%, 9/01/30 - AMBAC Insured
3,065 Corona-Norco Unified School District, Riverside County, 9/13 at 100.00 AAA 3,337,448
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 12/06 at 100.00 A+ 2,742,113
Improvement Project, Series 1991, 6.625%, 12/01/11
530 Hesperia Community Redevelopment Agency, California, 9/15 at 100.00 AAA 564,164
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 1,961,245
Refunding Bonds, Civic, Recreational and Industrial
Redevelopment Project 1, Series 2002, 5.500%, 5/01/19 -
MBIA Insured
Irvine, California, Unified School District, Community Facilities
District Special Tax Bonds, Series 2006A:
335 5.000%, 9/01/26 9/06 at 103.00 N/R 338,018
775 5.125%, 9/01/36 9/06 at 103.00 N/R 783,463
3,245 Los Angeles Community Redevelopment Agency, California, 9/15 at 100.00 Aaa 3,373,242
Lease Revenue Bonds, Manchester Social Services Project,
Series 2005, 5.000%, 9/01/37 - AMBAC Insured
1,350 Los Angeles Community Redevelopment Agency, California, 3/13 at 100.00 BBB- 1,373,895
Subordinate Lien Tax Allocation Bonds, Bunker Hill
Redevelopment Project, Series 2004L, 5.100%, 3/01/19
4,850 Los Angeles County Metropolitan Transportation Authority, 7/13 at 100.00 AAA 5,216,757
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 4,225,640
California, Lease Revenue Bonds, Master Refunding Project,
Series 2005A, 5.000%, 12/01/26 - MBIA Insured
3,005 Monterey County, California, Certificates of Participation, 8/11 at 100.00 Aaa 3,126,252
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 14,505,504
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 20,729,205
County, California, Revenue Refunding Bonds, Redevelopment
Project 1, Series 1995, 7.400%, 8/01/25 - MBIA Insured
1,170 Panama-Buena Vista Union School District, California, 9/16 at 100.00 AAA 1,241,370
Certificates of Participation, School Construction Project,
Series 2006, 5.000%, 9/01/24 - 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 1,609,245
1,500 5.000%, 9/01/20 - MBIA Insured 9/13 at 100.00 AAA 1,597,305
600 Rialto Redevelopment Agency, California, Tax Allocation Bonds, 9/15 at 100.00 AAA 624,030
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 4,618,296
Tax Allocation Bonds, Series 2003A, 5.250%, 9/01/22 -
MBIA Insured
745 Roseville, California, Certificates of Participation, Public 8/13 at 100.00 AAA 777,475
Facilities, Series 2003A, 5.000%, 8/01/25 - AMBAC Insured
2,500 San Jose Financing Authority, California, Lease Revenue 9/11 at 100.00 AAA 2,631,025
Refunding Bonds, Convention Center Project, Series 2001F,
5.000%, 9/01/20 - MBIA Insured
2,770 Santa Ana Community Redevelopment Agency, Orange 9/13 at 100.00 AAA 2,932,128
County, California, Tax Allocation Refunding Bonds, South
Main Street Redevelopment, Series 2003B,
5.000%, 9/01/19 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
93,845 Total Tax Obligation/Limited 103,554,354
------------------------------------------------------------------------------------------------------------------------------------
51
Nuveen California Quality Income Municipal Fund, Inc. (NUC) (continued)
Portfolio of INVESTMENTS August 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 14.4% (9.5% OF TOTAL INVESTMENTS)
$ 3,950 Bay Area Toll Authority, California, Revenue Bonds, 4/16 at 100.00 AA $ 4,166,736
San Francisco Bay Area Toll Bridge, Series 2006,
5.000%, 4/01/31
11,000 Foothill/Eastern Transportation Corridor Agency, California, 1/14 at 101.00 BBB- 9,867,880
Toll Road Revenue Refunding Bonds, Series 1999,
0.000%, 1/15/29
2,000 Orange County Transportation Authority, California, Toll Road 8/13 at 100.00 AAA 2,129,340
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 2,873,782
Bonds, Series 2002A, 5.250%, 7/01/21 - FSA Insured
20,000 San Francisco Airports Commission, California, Revenue Bonds, 5/10 at 101.00 AAA 21,421,600
San Francisco International Airport, Second Series 2000,
Issue 25, 5.750%, 5/01/30 - FSA Insured (Alternative
Minimum Tax)
San Francisco Airports Commission, California, Revenue
Refunding Bonds, San Francisco International Airport, Second
Series 2002, Issue 28A:
1,480 5.250%, 5/01/17 - MBIA Insured (Alternative Minimum Tax) 5/12 at 100.00 AAA 1,565,588
3,865 5.250%, 5/01/19 - MBIA Insured (Alternative Minimum Tax) 5/12 at 100.00 AAA 4,060,569
3,000 San Francisco Airports Commission, California, Revenue 5/12 at 100.00 AAA 3,205,530
Refunding Bonds, San Francisco International Airport,
Second Series 2002, Issue 28B, 5.250%, 5/01/22 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
47,980 Total Transportation 49,291,025
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 37.6% (24.8% OF TOTAL INVESTMENTS) (4)
7,325 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 N/R (4) 7,938,689
Settlement Asset-Backed Bonds, Sonoma County Tobacco
Funding Corporation, Series 2002B, 5.500%, 6/01/30
(Pre-refunded 6/01/12)
California Department of Water Resources, Power Supply
Revenue Bonds, Series 2002A:
2,500 5.375%, 5/01/17 (Pre-refunded 5/01/12) - XLCA Insured 5/12 at 101.00 AAA 2,754,725
9,000 5.125%, 5/01/18 (Pre-refunded 5/01/12) 5/12 at 101.00 Aaa 9,802,350
6,190 California Educational Facilities Authority, Revenue Bonds, 11/10 at 100.00 Aaa 6,735,834
University of the Pacific, Series 2000, 5.750%, 11/01/30
(Pre-refunded 11/01/10) - MBIA Insured
California Health Facilities Financing Authority, Revenue Bonds,
Cedars-Sinai Medical Center, Series 1999A:
10,400 6.125%, 12/01/30 (Pre-refunded 12/01/09) 12/09 at 101.00 A3 (4) 11,324,040
7,700 6.250%, 12/01/34 (Pre-refunded 12/01/09) 12/09 at 101.00 A3 (4) 8,412,173
8,000 California Pollution Control Financing Authority, Solid Waste 1/07 at 100.00 Aaa 9,113,360
Disposal Revenue Bonds, North County Recycling Center,
Series 1991A, 6.750%, 7/01/17 (ETM)
California, General Obligation Bonds, Series 2000:
1,105 5.500%, 6/01/25 (Pre-refunded 6/01/10) 6/10 at 100.00 Aaa 1,181,090
315 5.500%, 6/01/25 (Pre-refunded 6/01/10) 6/10 at 100.00 Aaa 336,691
4,440 Coast Community College District, Orange County, California, 8/13 at 100.00 AAA 4,796,310
General Obligation Refunding Bonds, Series 2003A,
5.000%, 8/01/22 (Pre-refunded 8/01/13) - MBIA Insured
1,615 Compton Unified School District, Los Angeles County, 9/13 at 100.00 AAA 1,791,520
California, General Obligation Bonds, Series 2003A,
5.375%, 9/01/19 (Pre-refunded 9/01/13) - MBIA Insured
12,805 Contra Costa County, California, GNMA Mortgage-Backed No Opt. Call AAA 17,423,507
Securities Program Home Mortgage Revenue Bonds,
Series 1988, 8.250%, 6/01/21 (Alternative Minimum
Tax) (ETM)
Golden State Tobacco Securitization Corporation, California,
Enhanced Tobacco Settlement Asset-Backed Bonds,
Series 2003B:
5,000 5.625%, 6/01/33 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 5,565,200
2,500 5.625%, 6/01/38 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 2,782,600
8,000 Los Angeles County Metropolitan Transportation Authority, 7/10 at 101.00 AAA 8,581,200
California, Proposition C Second Senior Lien Sales Tax
Revenue Bonds, Series 2000A, 5.250%, 7/01/25
(Pre-refunded 7/01/10) - FGIC Insured
2,000 Los Angeles Unified School District, California, General 7/10 at 100.00 AAA 2,136,660
Obligation Bonds, Series 2000D, 5.375%, 7/01/25
(Pre-refunded 7/01/10) - FGIC Insured
52
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 5,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA $ 5,364,550
Obligation Bonds, Series 2000A, 5.500%, 10/01/32 (ETM)
13,525 San Bernardino County, California, GNMA Mortgage-Backed No Opt. Call AAA 16,028,342
Securities Program Single Family Home Mortgage Revenue
Bonds, Series 1989A, 7.750%, 11/01/14 (Alternative
Minimum Tax) (ETM)
4,540 San Joaquin Delta Community College District, California, 8/15 at 100.00 Aaa 4,979,245
General Obligation Bonds, Series 2005A, 5.000%, 8/01/29
(Pre-refunded 8/01/15) - FSA Insured
2,000 San Jose Unified School District, Santa Clara County, 6/07 at 101.00 AAA 2,053,620
California, Certificates of Participation, Series 1999,
5.750%, 6/01/24 (Pre-refunded 6/01/07) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
113,960 Total U.S. Guaranteed 129,101,706
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 8.1% (5.3% OF TOTAL INVESTMENTS)
1,200 Los Angeles Department of Water and Power, California, 7/13 at 100.00 AAA 1,275,564
Power System Revenue Bonds, Series 2003A-2,
5.000%, 7/01/21 - MBIA Insured
500 Los Angeles Department of Water and Power, California, 7/15 at 100.00 AAA 526,410
Power System Revenue Bonds, Series 2005A-1,
5.000%, 7/01/31 - FSA Insured
1,235 Merced Irrigation District, California, Electric System Revenue 9/15 at 100.00 AAA 1,303,296
Bonds, Series 2005, 5.125%, 9/01/31 - XLCA Insured
5,000 Merced Irrigation District, California, Revenue Certificates 9/13 at 102.00 Baa3 5,275,300
of Participation, Electric System Project, Series 2003,
5.700%, 9/01/36
880 Redlands, California, Certificates of Participation Refunding, 9/06 at 100.00 AAA 882,288
Capital Improvement Projects, Series 1992,
6.800%, 3/01/07 - AMBAC 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 2,719,150
2,500 5.250%, 5/15/23 - FGIC Insured No Opt. Call AAA 2,713,950
2,410 Sacramento Municipal Utility District, California, Electric 8/12 at 100.00 AAA 2,585,352
Revenue Refunding Bonds, Series 2002Q, 5.250%, 8/15/21 -
FSA Insured
4,000 Southern California Public Power Authority, Revenue Bonds, 7/13 at 100.00 AAA 4,256,800
Magnolia Power Project, Series 2003-1A, 5.000%, 7/01/20 -
AMBAC Insured
5,500 Southern California Public Power Authority, Revenue Bonds, No Opt. Call A 6,172,485
Multiple Projects, Series 1989, 6.750%, 7/01/11
------------------------------------------------------------------------------------------------------------------------------------
25,725 Total Utilities 27,710,595
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 6.9% (4.5% OF TOTAL INVESTMENTS)
7,040 California Statewide Community Development Authority, 10/13 at 101.00 AAA 7,583,629
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 1,092,070
1,440 5.250%, 12/01/21 - MBIA Insured 12/13 at 100.00 AAA 1,572,581
1,205 5.250%, 12/01/22 - MBIA Insured 12/13 at 100.00 AAA 1,304,425
850 Healdsburg Public Financing Authority, California, Wastewater 4/16 at 100.00 AAA 892,551
Revenue Bonds, Series 2006, 5.000%, 4/01/36 - MBIA Insured
500 Norco, California, Certificates of Participation Refunding, 10/08 at 102.00 AAA 519,260
Water and Sewerage System Improvement Project,
Series 1998, 5.125%, 10/01/28 - AMBAC Insured
53
Nuveen California Quality Income Municipal Fund, Inc. (NUC) (continued)
Portfolio of INVESTMENTS August 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 1,380 Sacramento County Sanitation District Financing Authority, 6/16 at 100.00 AAA $ 1,456,742
California, Revenue Bonds, Series 2006, 5.000%, 12/01/36 -
FGIC Insured
5,375 San Francisco City and County Public Utilities Commission, 11/12 at 100.00 AAA 5,721,795
California, Water Revenue Bonds, Series 2002A,
5.000%, 11/01/19 - MBIA Insured
Turlock Public Finance Authority, California, Sewerage Revenue
Bonds, Series 2003A:
1,565 5.000%, 9/15/19 - FGIC Insured 9/13 at 100.00 AAA 1,672,735
1,650 5.000%, 9/15/20 - FGIC Insured 9/13 at 100.00 AAA 1,757,200
------------------------------------------------------------------------------------------------------------------------------------
22,005 Total Water and Sewer 23,572,988
------------------------------------------------------------------------------------------------------------------------------------
$ 482,175 Total Investments (cost $486,014,242) - 151.6% 520,188,553
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.3% 7,907,158
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (53.9)% (185,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 343,095,711
====================================================================================================================
FORWARD SWAPS OUTSTANDING AT AUGUST 31, 2006:
RATE RATE FIXED RATE FLOATING RATE UNREALIZED
NOTIONAL PAID RECEIVED PAYMENT PAYMENT EFFECTIVE TERMINATION APPRECIATION
COUNTERPARTY AMOUNT BY THE FUND (5) BY THE FUND (5) FREQUENCY FREQUENCY DATE (6) DATE (DEPRECIATION)
------------------------------------------------------------------------------------------------------------------------------------
Goldman Sachs $14,100,000 5.681% 3 Month USD-LIBOR Semi-Annually Quarterly 7/27/07 7/27/12 $ (306,176)
JPMorgan 22,200,000 5.630% 3 Month USD-LIBOR Semi-Annually Quarterly 7/27/07 7/27/10 (324,951)
JPMorgan 11,300,000 3 Month USD-LIBOR 5.869% Semi-Annually Quarterly 7/27/07 7/27/34 690,062
Morgan Stanley 23,000,000 3 Month USD-LIBOR 5.816% Semi-Annually Quarterly 7/27/07 7/27/29 1,132,012
------------------------------------------------------------------------------------------------------------------------------------
$1,190,947
====================================================================================================================================
USD-LIBOR (United States Dollar-London Inter-Bank Offered Rates)
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Optional Call Provisions (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. Certain
mortgage-backed securities may be subject to periodic
principal paydowns.
(3) Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating. Ratings below BBB
by Standard & Poor's Group or Baa by Moody's Investor
Service, Inc. are considered to be below investment
grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
(5) Represents the anuualized rate paid or received by the
Fund.
(6) Effective date represents the date on which both the
Fund and counterparty commence interest payment
accruals on each forward swap contract.
N/R Not rated.
(ETM) Escrowed to maturity.
See accompanying notes to financial statements.
54
Statement of
ASSETS AND LIABILITIES August 31, 2006
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
CALIFORNIA PERFORMANCE CALIFORNIA INVESTMENT SELECT QUALITY
VALUE PLUS OPPORTUNITY QUALITY QUALITY INCOME
(NCA) (NCP) (NCO) (NQC) (NVC) (NUC)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost
$235,376,319, $284,153,070,
$179,724,723, $298,288,987,
$509,948,074 and
$486,014,242, respectively) $252,140,433 $301,824,210 $193,599,721 $316,872,169 $542,298,503 $520,188,553
Cash -- 124,246 174,407 246,561 -- --
Receivables:
Interest 3,188,894 3,920,687 2,145,714 4,656,510 6,949,388 7,536,658
Investments sold 165,099 -- -- -- -- --
Unrealized appreciation
on forward swaps 699,627 718,581 -- 1,021,843 1,499,989 1,497,123
Other assets 11,724 38,284 16,589 36,041 45,553 55,863
------------------------------------------------------------------------------------------------------------------------------------
Total assets 256,205,777 306,626,008 195,936,431 322,833,124 550,793,433 529,278,197
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 157,491 -- -- -- 165,278 450,034
Unrealized depreciation
on forward swaps -- 16,136 -- 325,719 -- 306,176
Accrued expenses:
Management fees 117,704 162,178 104,516 170,288 287,560 276,323
Other 62,117 67,387 32,120 70,663 139,391 110,502
Preferred share dividends payable N/A 21,040 7,855 23,994 70,264 39,451
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 337,312 266,741 144,491 590,664 662,493 1,182,486
------------------------------------------------------------------------------------------------------------------------------------
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 $255,868,465 $200,359,267 $127,791,940 $210,242,460 $358,130,940 $343,095,711
====================================================================================================================================
Common shares outstanding 25,241,808 12,965,742 8,156,800 13,580,232 23,114,856 21,999,728
====================================================================================================================================
Net asset value per Common
share outstanding (net
assets applicable to Common
shares, divided by
Common shares outstanding) $ 10.14 $ 15.45 $ 15.67 $ 15.48 $ 15.49 $ 15.60
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value
per share $ 252,418 $ 129,657 $ 81,568 $ 135,802 $ 231,149 $ 219,997
Paid-in surplus 237,577,056 181,322,684 113,719,394 189,659,207 322,323,901 306,478,733
Undistributed
(Over-distribution of)
net investment income (136,562) 134,327 614,093 142,252 428,636 406,199
Accumulated net realized
gain (loss)
from investments 711,812 399,014 (498,113) 1,025,893 1,296,836 625,524
Net unrealized appreciation
(depreciation) of
investments and
derivative transactions 17,463,741 18,373,585 13,874,998 19,279,306 33,850,418 35,365,258
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable
to Common shares $255,868,465 $200,359,267 $127,791,940 $210,242,460 $358,130,940 $343,095,711
====================================================================================================================================
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.
55
Statement of
OPERATIONS Year Ended August 31, 2006
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
CALIFORNIA PERFORMANCE CALIFORNIA INVESTMENT SELECT QUALITY
VALUE PLUS OPPORTUNITY QUALITY QUALITY INCOME
(NCA) (NCP) (NCO) (NQC) (NVC) (NUC)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $13,113,660 $14,904,759 $ 9,771,467 $15,637,092 $27,001,698 $26,412,165
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 1,404,597 1,915,541 1,237,832 2,014,424 3,406,830 3,272,516
Preferred shares - auction fees N/A 264,864 170,021 280,181 480,311 462,285
Preferred shares - dividend
disbursing agent fees N/A 30,000 18,384 20,000 30,000 30,000
Shareholders' servicing agent fees
and expenses 42,210 25,011 15,460 23,315 31,755 29,694
Custodian's fees and expenses 68,780 79,933 53,626 79,877 147,635 133,651
Directors' fees and expenses 5,324 6,894 4,424 7,143 12,235 12,005
Professional fees 15,749 29,157 21,998 21,619 23,464 28,548
Shareholders' reports - printing
and mailing expenses 37,105 28,100 18,691 29,258 41,807 41,992
Stock exchange listing fees 10,344 10,010 10,010 10,010 10,010 10,036
Investor relations expense 28,027 31,012 20,819 32,469 51,952 51,116
Other expenses 10,619 27,367 25,040 28,074 33,868 36,201
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian
fee credit 1,622,755 2,447,889 1,596,305 2,546,370 4,269,867 4,108,044
Custodian fee credit (19,013) (22,075) (20,386) (13,953) (32,599) (31,402)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 1,603,742 2,425,814 1,575,919 2,532,417 4,237,268 4,076,642
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 11,509,918 12,478,945 8,195,548 13,104,675 22,764,430 22,335,523
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss)
from investments 1,153,412 636,401 1,867,329 1,109,302 3,503,725 760,463
Change in net unrealized
appreciation (depreciation)
of investments (5,153,097) (5,068,042) (5,200,076) (5,269,926) (11,039,966) (9,421,002)
Change in net unrealized
appreciation (depreciation)
of forward swaps 699,627 702,445 -- 696,124 1,499,989 1,190,947
------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) (3,300,058) (3,729,196) (3,332,747) (3,464,500) (6,036,252) (7,469,592)
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED
SHAREHOLDERS
From net investment income N/A (2,949,820) (1,827,655) (3,059,941) (5,098,860) (5,165,819)
From accumulated net realized gains N/A -- -- (110,537) (435,734) (102,178)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable
to Common shares from
distributions to Preferred
shareholders N/A (2,949,820) (1,827,655) (3,170,478) (5,534,594) (5,267,997)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations $ 8,209,860 $ 5,799,929 $ 3,035,146 $ 6,469,697 $11,193,584 $ 9,597,934
====================================================================================================================================
N/A - Fund is not authorized to issue Preferred shares.
See accompanying notes to financial statements.
56
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
8/31/06 8/31/05 8/31/06 8/31/05 8/31/06 8/31/05
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 11,509,918 $ 11,742,162 $ 12,478,945 $ 12,587,882 $ 8,195,548 $ 8,324,124
Net realized gain (loss)
from investments 1,153,412 992,787 636,401 26,124 1,867,329 166,107
Change in net unrealized
appreciation (depreciation)
of investments (5,153,097) 4,321,472 (5,068,042) 6,361,946 (5,200,076) 3,945,711
Change in net unrealized
appreciation (depreciation)
of forward swaps 699,627 -- 702,445 -- -- --
Distributions to
Preferred Shareholders:
From net investment income N/A N/A (2,949,820) (1,569,978) (1,827,655) (1,008,746)
From accumulated net realized gains N/A N/A -- (129,312) -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
applicable to Common
shares from operations 8,209,860 17,056,421 5,799,929 17,276,662 3,035,146 11,427,196
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (11,664,242) (11,804,999) (10,132,729) (11,669,172) (6,862,589) (7,583,854)
From accumulated net
realized gains (1,458,977) (2,019,942) -- (2,222,318) -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable
to Common shares from
distributions to Common
shareholders (13,123,219) (13,824,941) (10,132,729) (13,891,490) (6,862,589) (7,583,854)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions -- -- -- -- 32,720 --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
capital share transactions -- -- -- -- 32,720 --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (4,913,359) 3,231,480 (4,332,800) 3,385,172 (3,794,723) 3,843,342
Net assets applicable to Common
shares at the beginning of year 260,781,824 257,550,344 204,692,067 201,306,895 131,586,663 127,743,321
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of year $255,868,465 $260,781,824 $200,359,267 $204,692,067 $127,791,940 $131,586,663
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the end
of year $ (136,562) $ 44,642 $ 134,327 $ 744,084 $ 614,093 $ 1,108,793
====================================================================================================================================
N/A - Fund is not authorized to issue Preferred shares.
See accompanying notes to financial statements.
57
Statement of
CHANGES IN NET ASSETS (continued)
CALIFORNIA INVESTMENT QUALITY (NQC) CALIFORNIA SELECT QUALITY (NVC) CALIFORNIA QUALITY INCOME (NUC)
----------------------------------- ------------------------------- -------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
8/31/06 8/31/05 8/31/06 8/31/05 8/31/06 8/31/05
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 13,104,675 $ 13,335,770 $ 22,764,430 $ 23,451,740 $ 22,335,523 $ 22,942,792
Net realized gain (loss)
from investments 1,109,302 835,843 3,503,725 1,329,957 760,463 678,309
Change in net unrealized
appreciation (depreciation)
of investments (5,269,926) 4,550,382 (11,039,966) 11,008,345 (9,421,002) 14,266,825
Change in net unrealized
appreciation (depreciation)
of forward swaps 696,124 -- 1,499,989 -- 1,190,947 --
Distributions to
Preferred Shareholders:
From net investment income (3,059,941) (1,714,541) (5,098,860) (3,020,321) (5,165,819) (2,896,581)
From accumulated net
realized gains (110,537) (86,722) (435,734) (130,670) (102,178) (116,424)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
applicable to Common
shares from operations 6,469,697 16,920,732 11,193,584 32,639,051 9,597,934 34,874,921
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
COMMON SHAREHOLDERS
From net investment income (10,857,398) (12,548,137) (19,733,775) (22,172,610) (18,578,772) (21,251,737)
From accumulated
net realized gains (816,172) (1,435,415) (2,695,380) (2,316,774) (675,393) (1,744,585)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable
to Common shares from
distributions to Common
shareholders (11,673,570) (13,983,552) (22,429,155) (24,489,384) (19,254,165) (22,996,322)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions -- -- 279,153 -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
applicable to Common
shares from capital
share transactions -- -- 279,153 -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
applicable to Common shares (5,203,873) 2,937,180 (10,956,418) 8,149,667 (9,656,231) 11,878,599
Net assets applicable to
Common shares at the
beginning of year 215,446,333 212,509,153 369,087,358 360,937,691 352,751,942 340,873,343
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of year $210,242,460 $215,446,333 $358,130,940 $369,087,358 $343,095,711 $352,751,942
====================================================================================================================================
Undistributed (Over-distribution
of) net investment income
at the end of year $ 142,252 $ 943,916 $ 428,636 $ 2,504,303 $ 406,199 $ 1,822,613
====================================================================================================================================
See accompanying notes to financial statements.
58
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.
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 Fund's Board of Directors. When market
price quotes are not readily available (which is usually the case for municipal
securities), the pricing service establishes fair value based on yields or
prices of municipal bonds of comparable quality, type of issue, coupon, maturity
and rating, indications of value from securities dealers, evaluations of
anticipated cash flows or collateral and general market conditions. Prices of
forward swap contracts are also provided by an independent pricing service
approved by each Fund's Board of Directors. If the pricing service is unable to
supply a price for a municipal bond or forward swap contract, each Fund may use
a market price or fair market value quote provided by a major broker/dealer in
such investments. If it is determined that the market price or fair market value
for an investment is unavailable or inappropriate, the Board of Directors of the
Funds, or its designee, may establish a fair value for the investment. Temporary
investments in securities that have variable rate and demand features qualifying
them as short-term investments 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/delayed delivery purchase commitments. At
August 31, 2006, there were no such outstanding purchase commitments in any of
the Funds.
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
Investment income also includes paydown gains and losses, if any.
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, 2006, have been designated Exempt Interest Dividends. Net
realized capital gains and ordinary income distributions paid by the Funds are
subject to federal taxation.
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.
59
Notes to
FINANCIAL STATEMENTS (continued)
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
=========================================================================================================
Forward Swap Transactions
The Funds are authorized to invest in certain derivative financial instruments.
The Funds' use of forward interest rate swap transactions is intended to help
the Fund manage its overall interest rate sensitivity, either shorter or longer,
generally to more closely align the Fund's interest rate sensitivity with that
of the broader municipal market. Forward interest rate swap transactions involve
each Fund's agreement with a counterparty to pay, in the future, a fixed or
variable rate payment in exchange for the counterparty paying the Fund a
variable or fixed rate payment, the accruals for which would begin at a
specified date in the future (the "effective date"). The amount of the payment
obligation is based on the notional amount of the forward swap contract and the
termination date of the swap (which is akin to a bond's maturity). The value of
the Fund's swap commitment would increase or decrease based primarily on the
extent to which long-term interest rates for bonds having a maturity of the
swap's termination date increases or decreases. The Funds may terminate a swap
contract prior to the effective date, at which point a realized gain or loss is
recognized. When a forward swap is terminated, it ordinarily does not involve
the delivery of securities or other underlying assets or principal, but rather
is settled in cash on a net basis. Each Fund intends, but is not obligated, to
terminate its forward swaps before the effective date. Accordingly, the risk of
loss with respect to the swap counterparty on such transactions is limited to
the credit risk associated with a counterparty failing to honor its commitment
to pay any realized gain to the Fund upon termination. To reduce such credit
risk, all counterparties are required to pledge collateral daily (based on the
daily valuation of each swap) on behalf of each Fund with a value approximately
equal to the amount of any unrealized gain above a pre-determined threshold.
Reciprocally, when any of the Funds have an unrealized loss on a swap contract,
the Funds have instructed the custodian to pledge assets of the Funds as
collateral with a value approximately equal to the amount of the unrealized loss
above a pre-determined threshold. Collateral pledges are monitored and
subsequently adjusted if and when the swap valuations fluctuate, either up or
down, by at least the predetermined threshold amount.
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.
60
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.
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
8/31/06 8/31/05 8/31/06 8/31/05 8/31/06 8/31/05
---------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due to
reinvestment
of distributions -- -- -- -- 2,119 --
=========================================================================================================
CALIFORNIA CALIFORNIA CALIFORNIA
INVESTMENT QUALITY (NQC) SELECT QUALITY (NVC) QUALITY INCOME (NUC)
---------------------------------------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
8/31/06 8/31/05 8/31/06 8/31/05 8/31/06 8/31/05
---------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due to
reinvestment
of distributions -- -- 18,202 -- -- --
=========================================================================================================
3. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities but excluding short-term investments
and derivative transactions) during the fiscal year ended August 31, 2006, 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 $49,548,054 $32,854,212 $35,449,205 $36,335,182 $88,793,685 $60,476,558
Sales and maturities 50,445,179 33,605,622 37,310,265 39,489,315 94,407,839 60,126,277
=========================================================================================================
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. To the extent that
differences arise that are permanent in nature, such amounts are reclassified
within the capital accounts on the Statement of Assets and Liabilities, based on
their Federal tax basis treatment and have no impact on the net asset value of
the Funds. Temporary differences do not require reclassification.
At August 31, 2006, 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 $235,323,902 $283,832,133 $179,532,044 $297,794,338 $509,828,145 $485,845,787
============================================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at August 31, 2006, 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 $16,825,407 $17,997,682 $14,068,342 $19,095,734 $32,475,301 $34,344,574
Depreciation (8,876) (5,605) (665) (17,903) (4,943) (1,808)
-------------------------------------------------------------------------------------------------------------
Net unrealized appreciation
(depreciation) of
investments $16,816,531 $17,992,077 $14,067,677 $19,077,831 $32,470,358 $34,342,766
=============================================================================================================
61
Notes to
FINANCIAL STATEMENTS (continued)
The tax components of undistributed net tax-exempt income, net ordinary income
and net long-term capital gains at August 31, 2006, the Funds' tax year end,
were as follows:
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
CALIFORNIA PERFORMANCE CALIFORNIA INVESTMENT SELECT QUALITY
VALUE PLUS OPPORTUNITY QUALITY QUALITY INCOME
(NCA) (NCP) (NCO) (NQC) (NVC) (NUC)
---------------------------------------------------------------------------------------------------------
Undistributed net
tax-exempt income * $781,058 $603,371 $734,217 $506,773 $1,797,397 $1,630,439
Undistributed net
ordinary income ** 1,772 81,182 237,488 -- 118,707 76,734
Undistributed net long-term
capital gains 711,812 320,367 -- 1,025,893 1,296,836 625,526
=========================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on August 1, 2006, paid on September 1, 2006.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
The tax character of distributions paid during the tax years ended August 31,
2006 and August 31, 2005, was designated for purposes of the dividends paid
deduction as follows:
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
CALIFORNIA PERFORMANCE CALIFORNIA INVESTMENT SELECT QUALITY
VALUE PLUS OPPORTUNITY QUALITY QUALITY INCOME
2006 (NCA) (NCP) (NCO) (NQC) (NVC) (NUC)
---------------------------------------------------------------------------------------------------------
Distributions from net
tax-exempt income $11,661,718 $13,221,167 $8,779,357 $14,049,482 $25,049,126 $23,992,654
Distributions from net
ordinary income ** 123,685 -- -- 102,358 15,963 --
Distributions from net
long-term
capital gains *** 1,337,816 -- -- 837,876 3,131,114 777,570
=========================================================================================================
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
=========================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
*** The Funds designated as a long-term capital gain dividend, pursuant to
Internal Revenue Code Section 852(b)(3), the amount necessary to reduce the
earnings and profits of the Funds related to net capital gain to zero for
the tax year ended August 31, 2006.
At August 31, 2006, California Opportunity (NCO) had unused capital loss
carryforwards of $498,113 available for federal income tax purposes to be
applied against future capital gains, if any. If not applied the carryforwards
will expire in 2012.
62
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 Nuveen
Asset Management (the "Adviser"), a wholly owned subsidiary of Nuveen
Investments, Inc., ("Nuveen"), 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 Fund (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
================================================================================
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, 2006, the complex level fee rate was .1863%.
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 its 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.
63
Notes to
FINANCIAL STATEMENTS (continued)
6. NEW ACCOUNTING PRONOUNCEMENT
Financial Accounting Standards Board Interpretation No. 48
On July 13, 2006, the Financial Accounting Standards Board (FASB) released FASB
Interpretation No. 48 Accounting for Uncertainty in Income Taxes (FIN 48). FIN
48 provides guidance for how uncertain tax positions should be recognized,
measured, presented and disclosed in the financial statements. FIN 48 requires
the evaluation of tax positions taken or expected to be taken in the course of
preparing the Fund's tax returns to determine whether the tax positions are
"more-likely-than-not" of being sustained by the applicable tax authority. Tax
positions not deemed to meet the more-likely-than-not threshold would be
recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is
required for fiscal years beginning after December 15, 2006 and is to be applied
to all open tax years as of the effective date. At this time, management is
evaluating the implications of FIN 48 and does not expect the adoption of FIN 48
will have a significant impact on the net assets or results of operations of the
Funds.
7. SUBSEQUENT EVENTS
Distributions to Common Shareholders
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on October 2, 2006, to shareholders of record
on September 15, 2006, 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 $.0595 $.0665 $.0585 $.0635 $.0650
=========================================================================================================
64
Financial
HIGHLIGHTS
65
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:
2006 $10.33 $ .46 $(.13) $N/A $N/A $ .33 $(.46) $(.06) $ (.52)
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)
CALIFORNIA
PERFORMANCE PLUS (NCP)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2006 15.79 .96 (.29) (.23) -- .44 (.78) -- (.78)
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)
CALIFORNIA
OPPORTUNITY (NCO)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2006 16.14 1.00 (.41) (.22) -- .37 (.84) -- (.84)
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)
====================================================================================================================================
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:
2006 $10.14 $ 9.67 2.85% 3.34%
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
CALIFORNIA
PERFORMANCE PLUS (NCP)
------------------------------------------------------------------------
Year Ended 8/31:
2006 15.45 14.36 4.42 2.97
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
CALIFORNIA
OPPORTUNITY (NCO)
------------------------------------------------------------------------
Year Ended 8/31:
2006 15.67 15.36 4.02 2.47
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
========================================================================
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:
2006 $255,868 .64% 4.51% .63% 4.52% 20%
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
CALIFORNIA
PERFORMANCE PLUS (NCP)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2006 200,359 1.23 6.28 1.22 6.29 11
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
CALIFORNIA
OPPORTUNITY (NCO)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2006 127,792 1.26 6.43 1.24 6.45 18
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
===============================================================================================================================
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:
2006 $ N/A $ N/A $ N/A
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
CALIFORNIA
PERFORMANCE PLUS (NCP)
-----------------------------------------------------------------------
Year Ended 8/31:
2006 106,000 25,000 72,255
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
CALIFORNIA
OPPORTUNITY (NCO)
-----------------------------------------------------------------------
Year Ended 8/31:
2006 68,000 25,000 71,982
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
=======================================================================
N/A Fund is not authorized to issue Preferred shares.
* Total 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.
See accompanying notes to financial statements.
66-67 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:
2006 $15.86 $ .96 $(.24) $(.23) $(.01) $ .48 $ (.80) $(.06) $ (.86)
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)
CALIFORNIA SELECT
QUALITY (NVC)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2006 15.98 .99 (.27) (.22) (.02) .48 (.85) (.12) (.97)
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)
CALIFORNIA QUALITY
INCOME (NUC)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2006 16.03 1.02 (.35) (.23) -- .44 (.84) (.03) (.87)
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)
====================================================================================================================================
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:
2006 $15.48 $14.63 2.73% 3.21%
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
CALIFORNIA SELECT
QUALITY (NVC)
-----------------------------------------------------------------------
Year Ended 8/31:
2006 15.49 15.25 3.63 3.21
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
CALIFORNIA QUALITY
INCOME (NUC)
-----------------------------------------------------------------------
Year Ended 8/31:
2006 15.60 15.28 2.90 2.96
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
=======================================================================
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:
2006 $210,242 1.22% 6.28% 1.21% 6.29% 11%
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
CALIFORNIA SELECT
QUALITY (NVC)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2006 358,131 1.20 6.38 1.19 6.39 16
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
CALIFORNIA QUALITY
INCOME (NUC)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2006 343,096 1.21 6.54 1.20 6.55 12
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
===============================================================================================================================
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:
2006 $112,000 $25,000 $71,929
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
CALIFORNIA SELECT
QUALITY (NVC)
-----------------------------------------------------------------------
Year Ended 8/31:
2006 192,000 25,000 71,632
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
CALIFORNIA QUALITY
INCOME (NUC)
-----------------------------------------------------------------------
Year Ended 8/31:
2006 185,000 25,000 71,364
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
=======================================================================
* Total 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.
See accompanying notes to financial statements.
68-69 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, 167
3/28/49 the Board Inc., Nuveen Investments, LLC, Nuveen Advisory Corp. and
333 W. Wacker Drive and Board Nuveen Institutional Advisory Corp.(3); formerly, Director
Chicago, IL 60606 Member (1996-2006) 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 Lead Independent 1997 Private Investor and Management Consultant. 167
8/22/40 Board member
333 W. Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Lawrence H. Brown Board member 1993 Retired (since 1989) as Senior Vice President of The 167
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 167
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 and 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, Tippie College of Business, University of Iowa (since 167
3/6/48 June 2006); formerly, Dean and Distinguished Professor of Finance,
333 W. Wacker Drive School of Business at the University of Connecticut (2003-2006);
Chicago, IL 60606 previously, Senior Vice President and Director of Research
at the Federal Reserve Bank of Chicago (1995-2003);
Director (since 1997), Credit Research Center at Georgetown
University; Director (since 2004) of Xerox Corporation;
Director, SS&C Technologies, Inc. (May 2005 - October 2005).
------------------------------------------------------------------------------------------------------------------------------------
David J. Kundert Board member 2005 Retired (since 2004) as Chairman, JPMorgan Fleming Asset 165
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;
member of the Wisconsin Bar Association; member of Board
of Directors, Friends of Boerner Botanical Gardens.
70
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 of Miller-Valentine Partners Ltd., a real estate 167
9/24/44 investment company; formerly, Senior Partner and Chief
333 W. Wacker Drive Operating Officer (retired, 2004) of Miller-Valentine
Chicago, IL 60606 Group; formerly, Vice President, Miller-Valentine Realty;
Board Member, Chair of the Finance Committee and
member of the Audit Committee of Premier Health Partners,
the not-for-profit company of Miami Valley Hospital; Vice
President, Dayton Philharmonic Orchestra Association; Board
Member, Regional Leaders Forum, which promotes cooperation
on economic development issues; Director, 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 167
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, 167
1/22/50 Northwestern University (since 1997); Director (since 2003),
333 W. Wacker Drive Chicago Board Options Exchange; formerly, Director
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 167
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. and Symphony Asset Management LLC (since 2003);
Assistant Secretary of Tradewinds NWQ Global Investors,
LLC (since 2006); Chartered Financial Analyst.
71
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 167
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 167
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 and Treasurer of Nuveen Investments, LLC 167
11/28/67 and of Nuveen Investments, Inc. (since 1999); Vice President
333 W. Wacker Drive and Treasurer of Nuveen Asset Management (since 2002)
Chicago, IL 60606 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. and Symphony Asset
Management LLC (since 2003); Treasurer, Tradewinds NWQ
Global Investors, LLC (since 2006); formerly, Vice President and
Treasurer (1999-2004) of Nuveen Advisory Corp. and Nuveen
Institutional Advisory Corp.(3); Chartered Financial Analyst.
------------------------------------------------------------------------------------------------------------------------------------
John N. Desmond Vice President 2005 Vice President, Director of Investment Operations, Nuveen 167
8/24/61 Investments, LLC (since January 2005); formerly, Director,
333 W. Wacker Drive Business Manager, Deutsche Asset Management (2003-2004),
Chicago, IL 60606 Director, Business Development and Transformation, Deutsche
Trust Bank Japan (2002-2003); previously, Senior Vice
President, Head of Investment Operations and Systems,
Scudder Investments Japan, (2000-2002), Senior Vice
President, Head of Plan Administration and Participant
Services, Scudder Investments (1995-2002).
------------------------------------------------------------------------------------------------------------------------------------
Jessica R. Droeger Vice President 1998 Vice President (since 2002), Assistant Secretary and 167
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.
------------------------------------------------------------------------------------------------------------------------------------
Lorna C. Ferguson Vice President 1998 Managing Director (since 2004), formerly, Vice President of 167
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.
------------------------------------------------------------------------------------------------------------------------------------
William M. Fitzgerald Vice President 1995 Managing Director (since 2002), formerly, Vice President of 167
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 (since 2001) of Nuveen Asset
Management; Vice President (since 2002) of Nuveen
Investments Advisers Inc.; Chartered Financial Analyst.
72
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):
------------------------------------------------------------------------------------------------------------------------------------
Stephen D. Foy Vice President 1998 Vice President (since 1993) and Funds Controller (since 1998) 167
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.
------------------------------------------------------------------------------------------------------------------------------------
Walter M. Kelly Chief 2003 Assistant Vice President and Assistant Secretary of the 167
2/24/70 Compliance Nuveen Funds (since 2003); Assistant Vice President and
333 West Wacker Drive Officer Assistant General Counsel (since 2003) of Nuveen Investments,
Chicago, IL 60606 LLC; previously, Associate (2001-2003) a the law firm of Vedder,
Price, Kaufman & Kammholz.
------------------------------------------------------------------------------------------------------------------------------------
David J. Lamb Vice President 2000 Vice President (since 2000) of Nuveen Investments, 167
3/22/63 LLC; Certified Public Accountant.
333 W. Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Tina M. Lazar Vice President 2002 Vice President of Nuveen Investments, LLC (since 1999). 167
8/27/61
333 W. Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Larry W. Martin Vice President 1988 Vice President, Assistant Secretary and Assistant General 167
7/27/51 and Assistant Counsel of Nuveen Investments, LLC; formerly, Vice President
333 W. Wacker Drive Secretary and 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), Symphony Asset
Management LLC (since 2003) and Tradewinds NWQ Global
Investors, LLC (since 2006).
(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.
73
ANNUAL INVESTMENT
MANAGEMENT AGREEMENT
APPROVAL PROCESS
The Board of Trustees is responsible for overseeing the performance of the
investment adviser to the Funds and determining whether to continue the advisory
arrangements. At a meeting held on May 23-25, 2006 (the "May Meeting"), the
Board of Trustees of the Funds, including the independent Trustees, unanimously
approved the continuance of the Investment Management Agreement between each
Fund and NAM (the "Fund Adviser").
THE APPROVAL PROCESS
During the course of the year, the Board received a wide variety of materials
relating to the services provided by the Fund Adviser and the performance of
each Fund. To assist the Board in its evaluation of the advisory contract with
the Fund Adviser at the May Meeting, the independent Trustees received extensive
materials in advance of their meeting which outlined, among other things:
o the nature, extent and quality of services provided by the Fund
Adviser;
o the organization and business operations of the Fund Adviser,
including the responsibilities of various departments and key
personnel;
o the Fund's past performance, the Fund's performance compared to funds
of similar investment objectives compiled by an independent third
party and to customized benchmarks;
o the profitability of the Fund Adviser and certain industry
profitability analyses for unaffiliated advisers;
o the expenses of the Fund Adviser in providing the various services;
o the advisory fees (gross and net management fees) and total expense
ratios of the Fund, including comparisons of such fees and expenses
with those of comparable, unaffiliated funds based on information and
data provided by Lipper (the "Peer Universe") as well as compared to a
subset of funds within the Peer Universe (the "Peer Group") to the
respective Fund (as applicable);
o the advisory fees the Fund Adviser assesses to other types of
investment products or clients;
o the soft dollar practices of the Fund Adviser, if any; and
o from independent legal counsel, a legal memorandum describing, among
other things, the duties of the Trustees under the Investment Company
Act of 1940 (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 May Meeting, the Fund Adviser 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 contracts. It is with this background that
the Trustees considered the advisory contract with the Fund Adviser. 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
the Fund Adviser; (b) the investment performance of the Fund and the Fund
Adviser; (c) the costs of the services to be provided and profitability of the
Fund Adviser and its affiliates; (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 reviewing the Fund Adviser, the Trustees considered the nature, extent and
quality of the Fund Adviser's services. The Trustees reviewed materials
outlining, among other things, the Fund Adviser's organization and business; the
types of services that the Fund Adviser or its affiliates provide and are
expected to provide to the Funds; the performance record of the applicable Fund
(as described in further detail below); and any initiatives and enhancements
Nuveen has taken for its municipal fund product line. In connection with their
continued service as Trustees, the Trustees also have a good understanding of
the Fund Adviser's organization, operations and personnel. In this regard, the
Trustees are familiar with and have evaluated the professional experience,
qualifications and credentials of the Fund Adviser's personnel. The Trustees
further reviewed materials describing, among other things, the teams and
personnel involved in the investment, research, risk-management and operational
processes involved in managing municipal funds
74
and their respective functions. Given the Trustees' experience with the Funds
and Fund Adviser, the Trustees recognized the demonstrated history of care and
depth of experience of the respective personnel in managing these Funds. In this
regard, the Trustees considered the continued quality of the Fund Adviser's
investment process in making portfolio management decisions as well as
additional refinements and improvements adopted to the portfolio management
processes noted below. With respect to the services provided to municipal funds,
including the Funds, the Trustees noted that the Fund Adviser continues to make
refinements to its portfolio management process including, among other things,
the increased use of derivatives to enhance management of risk, additional
analytical software for research staff and improved municipal pricing processes.
In addition to advisory services, the independent Trustees considered the
quality of any administrative or non-advisory services provided. The Fund
Adviser provides the Funds 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 connection with the review of the Investment Management
Agreement, the Trustees considered the extent and quality of these other
services which include, among other things, providing: product management (e.g.,
product positioning, performance benchmarking, risk management); fund
administration (e.g., daily net asset value pricing and reconciliation, tax
reporting, fulfilling regulatory filing requirements); oversight of third party
service providers; administration of board relations (e.g., organizing board
meetings and preparing related materials); compliance (e.g., monitoring
compliance with investment policies and guidelines and regulatory requirements);
and legal support (e.g., helping prepare and file registration statements,
amendments thereto, proxy statements and responding to regulatory requests
and/or inquiries). As the Funds operate in a highly regulated industry and given
the importance of compliance, the Trustees considered, in particular, the
additions of experienced personnel to the compliance teams and the enhancements
to technology and related systems to support the compliance activities for the
Funds (including a new reporting system for quarterly portfolio holdings).
In addition to the foregoing, the Trustees also noted the additional services
that the Fund Adviser or its affiliates provide to closed-end funds, including,
in particular, secondary market support activities. The Trustees recognized
Nuveen's continued commitment to supporting the secondary market for the common
shares of its closed-end funds through a variety of initiatives designed to
raise investor and analyst awareness and understanding of closed-end funds.
These efforts include providing advertising and other media relations programs,
continued contact with analysts, maintaining and enhancing its website for
closed-end funds, and targeted advisor communication programs. With respect to
funds that utilize leverage through the issuance of preferred shares, the
Trustees noted Nuveen's continued support for the preferred shares by
maintaining, among other things, an in-house preferred trading desk; designating
a product manager whose responsibilities include creating and disseminating
product information and managing relations in connection with the preferred
share auction; and maintaining systems necessary to test compliance with rating
agency requirements.
Based on their review, the Trustees found that, overall, the nature, extent and
quality of services provided (and expected to be provided) to the respective
Funds under the Investment Management Agreement were of a high level and were
satisfactory.
B. THE INVESTMENT PERFORMANCE OF THE FUND AND FUND ADVISER
The Board considered the investment performance for each Fund, including the
Fund's historic performance as well as its performance compared to funds with
similar investment objectives identified by an independent third party (the
"Performance Peer Group") and portfolio level performance against customized
benchmarks, as described below. In evaluating the performance information, in
certain instances, the Trustees noted that the closest Performance Peer Group
for a Fund still may not adequately reflect such Fund's investment objectives,
strategies and portfolio duration, thereby limiting the usefulness of the
comparisons of such Fund's performance with that of the Performance Peer Group.
With respect to state specific municipal funds, the Trustees recognized that
certain state municipal funds do not have a corresponding state specific
Performance Peer Group in which case their performance is measured against a
more general municipal category for various states. The closed-end state
municipal funds that do not have corresponding state-specific Performance Peer
Groups are from Arizona, Connecticut, Georgia, Maryland, Massachusetts,
Missouri, North Carolina, Ohio, Texas, and Virginia. Further, due to a lack of
state-specific unleveraged categories, certain unleveraged state municipal funds
are included in their leveraged state category (such as, the Nuveen California
Select Tax-Free Income Fund, Nuveen California Municipal Value Fund, Nuveen New
York Select Tax-Free Income Fund and Nuveen New York Municipal Value Fund).
In reviewing performance, the Trustees reviewed performance information
including, among other things, total return information compared with the Fund's
Performance Peer Group for the one-, three- and five-year periods (as
applicable) ending December 31, 2005. The Trustees also reviewed the Fund's
portfolio level performance (which does not reflect fund level fees and
expenses) compared to customized portfolio-level benchmarks for the one- and
three-year periods ending December 31, 2005 (as applicable). This analysis is
designed to assess the efficacy of investment decisions against appropriate
measures of risk and total return, within specific market segments. This
information supplements the Fund performance information provided to the Board
at each of their quarterly meetings. Based on their review, the Trustees
determined that the respective 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 of a Fund, the Board
reviewed, among other things, the Fund's advisory fees (net and gross
management fees) and total expense ratios (before and after expense
reimbursements and/or waivers) in absolute terms as well as comparisons to
the gross management fees (before waivers), net management fees (after
waivers) and total expense ratios (before and after waivers) of comparable
funds in the Peer Universe and the Peer Group. The Trustees reviewed data
regarding the construction of Peer Groups as well as the methods of
measurement for the fee and expense analysis and the performance analysis.
In certain cases, due to the small number of peers in the Peer Universe,
the Peer Universe and Peer Group may be the same. Further, the Trustees
recognized that in certain cases the closest Peer Universe and/or Peer
Group did not adequately reflect the Fund's investment objectives and
strategies limiting the usefulness of comparisons. In reviewing
comparisons,
75
ANNUAL INVESTMENT MANAGEMENT
AGREEMENT APPROVAL PROCESS (continued)
the Trustees also considered the size of the Peer Universe and/or Peer
Group, the composition of the Peer Group (including differences in the use
of leverage and insurance) as well as differing levels of fee waivers
and/or expense reimbursements. In this regard, the Trustees considered the
fund-level and complex-wide breakpoint schedules (described in further
detail below) and any fee waivers and reimbursements provided by Nuveen
(applicable, in particular, for certain funds launched since 1999). Based
on their review of the fee and expense information provided, the Trustees
determined that each Fund's net total expense ratio was within an
acceptable range compared to peers.
2. COMPARISONS WITH THE FEES OF OTHER CLIENTS
The Trustees further reviewed data comparing the advisory fees of the Fund
Adviser with fees the Fund Adviser charges to other clients, including
municipal managed accounts. In general, the fees charged for separate
accounts are somewhat lower than the fees assessed to the Funds. The
Trustees recognized that the differences in fees are attributable to a
variety of factors, including the differences in services provided, product
distribution, portfolio investment policies, investor profiles, account
sizes and regulatory requirements. The Trustees noted, in particular, that
the range of services provided to the Funds is more extensive than that
provided to managed separate accounts. As described in further detail
above, such additional services include, but are not limited to, providing:
product management, fund administration, oversight of third party service
providers, administration of board relations, and legal support. Funds
further operate in a highly regulated industry requiring extensive
compliance functions compared to the other investment products. In addition
to the costs of the additional services, administrative costs may also be
greater for funds as the average account size for separate accounts is
notably larger than the retail accounts of funds. Given the differences in
the product structures, particularly the extensive services provided to
closed-end municipal funds, the Trustees believe such facts justify the
different levels of fees.
3. PROFITABILITY OF FUND ADVISER
In conjunction with its review of fees, the Trustees also considered the
profitability of Nuveen Investments for advisory activities (which
incorporated Nuveen's wholly-owned affiliated sub-advisers). The Trustees
reviewed data comparing Nuveen's profitability with other fund sponsors
prepared by three independent third party service providers as well as
comparisons of the revenues, expenses and profits margins of various
unaffiliated management firms with similar amounts of assets under
management prepared by Nuveen. The Trustees further reviewed the 2005
Annual Report for Nuveen Investments. In considering profitability, the
Trustees recognized the inherent limitations in determining profitability
as well as the difficulties in comparing the profitability of other
unaffiliated advisers. Profitability may be affected by numerous factors,
including the methodology for allocating expenses, the adviser's business
mix, the types of funds managed, the adviser's capital structure and cost
of capital. Further, individual fund or product line profitability of other
sponsors is generally not publicly available. Accordingly, the
profitability information that is publicly available from various
investment advisory or management firms may not be representative of the
industry.
Notwithstanding the foregoing, in reviewing profitability, the Trustees reviewed
Nuveen's methodology and assumptions for allocating expenses across product
lines to determine profitability. In this regard, the methods of allocation used
appeared reasonable. The Trustees also, to the extent available, compared
Nuveen's profitability margins (including pre- and post-marketing profit
margins) with the profitability of various unaffiliated management firms. The
Trustees noted that Nuveen's profitability is enhanced due to its efficient
internal business model. The Trustees also recognized that while a number of
factors affect profitability, Nuveen's profitability may change as fee waivers
and/or expense reimbursement commitments of Nuveen to various funds in the
Nuveen complex expire. To keep apprised of profitability and developments that
may affect profitability, the Trustees have requested profitability analysis be
provided periodically during the year. Based on their review, the Trustees were
satisfied that the Fund Adviser's level of profitability was reasonable in light
of the services provided.
In evaluating the reasonableness of the compensation, the Trustees also
considered any other revenues paid to the Fund Adviser as well as any indirect
benefits (such as soft dollar arrangements, if any) the Fund Adviser 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.
76
D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE
With respect to economies of scale, the Trustees recognized the potential
benefits resulting from the costs of a fund being spread over a larger asset
base as a fund grows. To help ensure the shareholders share in these benefits,
the Trustees have reviewed and considered the breakpoints in the advisory fee
schedules that reduce advisory fees as the applicable Fund's assets grow. In
addition to advisory fee breakpoints as assets in a respective Fund rise, after
lengthy discussions with management, the Board also approved a complex-wide fee
arrangement that was introduced on August 1, 2004. Pursuant to the complex-wide
fee arrangement, the fees of the funds in the Nuveen complex, including the
Funds, are reduced as the assets in the fund complex reach certain levels. 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 noted
that 2005 was the first full year to reflect the fee reductions from the complex
wide fee arrangement. 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.
E. INDIRECT BENEFITS
In evaluating fees, the Trustees also considered any indirect benefits or
profits the Fund Adviser or its affiliates may receive as a result of its
relationship with each Fund. In this regard, the Trustees considered revenues
received by affiliates of the Fund Adviser for serving as agent at Nuveen's
preferred trading desk and for serving as a co-manager in the initial public
offering of new closed-end exchange traded funds.
In addition to the above, the Trustees considered whether the Fund Adviser
received any benefits from soft dollar arrangements. With respect to NAM, the
Trustees noted that 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; however, the Fund Adviser may from time
to time receive and have access to research generally provided to institutional
clients.
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 Fund Adviser's fees are reasonable in light of the
services provided to each Fund, and that the renewal of the Investment
Management Agreements should be approved.
77
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 FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen Exchange-Traded Closed-End Fund allows you to conveniently reinvest
dividends and/or capital gains distributions in additional fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
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.
78
Other Useful
INFORMATION
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, 2006, 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 Company
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust Company
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
Chicago, IL
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.
79
Photo of: 2 women looking at a photo album.
Nuveen Investments:
SERVING Investors
For GENERATIONS
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
WE OFFER MANY DIFFERENT INVESTING SOLUTIONS FOR OUR CLIENTS' DIFFERENT NEEDS.
Managing more than $149 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 six 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; Santa Barbara, a leader in growth equities; and Tradewinds NWQ, a
leader in global equities.
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
Learn more o Fund details
about Nuveen Funds at o Daily financial news
WWW.NUVEEN.COM/ETF o Investor education
o Interactive planning tools
Logo: NUVEEN Investments
EAN-A-0806D
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 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 (1) BILLED TO FUND (2) BILLED TO FUND (3) BILLED TO FUND (4)
----------------------------------------------------------------------------------------------------------------------
August 31, 2006 $ 12,412 $ 0 $ 400 $ 0
----------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0% 0%
pursuant to
pre-approval
exception
----------------------------------------------------------------------------------------------------------------------
August 31, 2005 $ 11,682 $ 0 $ 429 $ 0
----------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0% 0%
pursuant to
pre-approval
exception
----------------------------------------------------------------------------------------------------------------------
(1) "Audit Fees" are the aggregate fees billed for professional services for
the audit of the Fund's annual financial statements and services provided
in connection with statutory and regulatory filings or engagements.
(2) "Audit Related Fees" are the aggregate fees billed for assurance and
related services reasonably related to the performance of the audit or
review of financial statements and are not reported under "Audit Fees".
(3) "Tax Fees" are the aggregate fees billed for professional services for tax
advice, tax compliance, and tax planning.
(4) "All Other Fees" are the aggregate fees billed for products and services
other than "Audit Fees", "Audit Related Fees", and "Tax Fees".
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 (1) SERVICE PROVIDERS
---------------------------------------------------------------------------------------------------
August 31, 2006 $ 0 $ 2,200 $ 0
---------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
---------------------------------------------------------------------------------------------------
August 31, 2005 $ 0 $ 2,200 $ 0
---------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
---------------------------------------------------------------------------------------------------
(1) The amounts reported for the Fund under the column heading "Tax Fees"
represents amounts billed to the Adviser exclusively for the preparation
for the Fund's tax return, the cost of which is borne by the Adviser. In
the aggregate, for all Nuveen funds for which Ernst & Young LLP serves as
independent registered public accounting firm, these fees amounted to
$275,000 in 2006 and $282,575 in 2005.
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. The Audit
Committee is required to pre-approve non-audit services that Ernst & Young LLP
provides to the Adviser and any Affiliated Fund Services 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 FEE OPERATIONS AND FINANCIAL PROVIDERS (ALL OTHER
BILLED TO FUND REPORTING OF THE FUND) ENGAGEMENTS) TOTAL
----------------------------------------------------------------------------------------------------------------------
August 31, 2006 $ 400 $ 2,200 $ 0 $ 2,600
August 31, 2005 $ 429 $ 2,200 $ 0 $ 2,629
"Non-Audit Fees billed to Adviser" for both fiscal year ends represent "Tax
Fees" billed to Adviser in their respective amounts from the 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.
The registrant invests its assets primarily in municipal bonds and cash
management securities. On rare occasions the registrant may acquire, directly or
through a special purpose vehicle, equity securities of a municipal bond issuer
whose bonds the registrant already owns when such bonds have deteriorated or are
expected shortly to deteriorate significantly in credit quality. The purpose of
acquiring equity securities generally will be to acquire control of the
municipal bond issuer and to seek to prevent the credit deterioration or
facilitate the liquidation or other workout of the distressed issuer's credit
problem. In the course of exercising control of a distressed municipal issuer,
NAM may pursue the registrant's interests in a variety of ways, which may entail
negotiating and executing consents, agreements and other arrangements, and
otherwise influencing the management of the issuer. NAM does not consider such
activities proxy voting for purposes of Rule 206(4)-6 under the 1940 Act, but
nevertheless provides reports to the registrant's Board of Trustees on its
control activities on a quarterly basis.
In the rare event that a municipal issuer were to issue a proxy or that the
registrant were to receive a proxy issued by a cash management security, NAM
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 registrant's Board of Trustees or its representative. A member of NAM's
legal department would oversee the administration of the voting, and ensure that
records were maintained in accordance with Rule 206(4)-6, reports were filed
with the SEC on Form N-PX, and the results provided to the registrant's Board of
Trustees and made available to shareholders as required by applicable rules.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
THE PORTFOLIO MANAGER
The following individual has primary responsibility for the day-to-day
implementation of the registrant's investment strategies:
NAME FUND
Scott R. Romans Nuveen California Municipal Value Fund, Inc.
Other Accounts Managed. In addition to managing the registrant, the portfolio
manager is also primarily responsible for the day-to-day portfolio management of
the following accounts:
NUMBER OF
PORTFOLIO MANAGER TYPE OF ACCOUNT MANAGED ACCOUNTS ASSETS
-------------------------------------------------------------------------------------------
Scott R. Romans Registered Investment Company 28 $6.02 billion
Other Pooled Investment Vehicles 0 $0
Other Accounts 4 $.25 million
* Assets are as of August 31, 2006. None of the assets in these accounts are
subject to an advisory fee based on performance.
Compensation. Each portfolio manager's compensation consists of three basic
elements--base salary, cash bonus and long-term incentive compensation. The
compensation strategy is to annually compare overall compensation, including
these three elements, to the market in order to create a compensation structure
that is competitive and consistent with similar financial services companies. As
discussed below, several factors are considered in determining each portfolio
manager's total compensation. In any year these factors may include, among
others, the effectiveness of the investment strategies recommended by the
portfolio manager's investment team, the investment performance of the accounts
managed by the portfolio manager, and the overall performance of Nuveen
Investments, Inc. (the parent company of NAM). Although investment performance
is a factor in determining the portfolio manager's compensation, it is not
necessarily a decisive factor. The portfolio manager's performance is evaluated
in part by comparing manager's performance against a specified investment
benchmark. This fund-specific benchmark is a customized subset (limited to bonds
in each Fund's specific state and with certain maturity parameters) of the
S&P/Investortools Municipal Bond index, an index comprised of bonds held by
managed municipal bond fund customers of Standard & Poor's Securities Pricing,
Inc. that are priced daily and whose fund holdings aggregate at least $2
million. As of August 30, 2006, the S&P/Investortools Municipal Bond index was
comprised of 47,346 securities with an aggregate current market value of $879
billion.
Base salary. Each portfolio manager is paid a base salary that is set at a level
determined by NAM in accordance with its overall compensation strategy discussed
above. NAM is not under any current contractual obligation to increase a
portfolio manager's base salary.
Cash bonus. Each portfolio manager is also eligible to receive an annual cash
bonus. The level of this bonus is based upon evaluations and determinations made
by each portfolio manager's supervisors, along with reviews submitted by his
peers. These reviews and evaluations often take into account a number of
factors, including the effectiveness of the investment strategies recommended to
the NAM's investment team, the performance of the accounts for which he serves
as portfolio manager relative to any benchmarks established for those accounts,
his effectiveness in communicating investment performance to stockholders and
their representatives, and his contribution to the NAM's investment process and
to the execution of investment strategies. The cash bonus component is also
impacted by the overall performance of Nuveen Investments, Inc. in achieving its
business objectives.
Long-term incentive compensation. Each portfolio manager is eligible to receive
bonus compensation in the form of equity-based awards issued in securities
issued by Nuveen Investments, Inc. The amount of such compensation is dependent
upon the same factors articulated for cash bonus awards but also factors in his
long-term potential with the firm.
Material Conflicts of Interest. Each portfolio manager's simultaneous management
of the registrant and the other accounts noted above may present actual or
apparent conflicts of interest with respect to the allocation and aggregation of
securities orders placed on behalf of the Registrant and the other account. NAM,
however, believes that such potential conflicts are mitigated by the fact that
the NAM has adopted several policies that address potential conflicts of
interest, including best execution and trade allocation policies that are
designed to ensure (1) that portfolio management is seeking the best price for
portfolio securities under the circumstances, (2) fair and equitable allocation
of investment opportunities among accounts over time and (3) compliance with
applicable regulatory requirements. All accounts are to be treated in a
non-preferential manner, such that allocations are not based upon account
performance, fee structure or preference of the portfolio manager. In addition,
NAM has adopted a Code of Conduct that sets forth policies regarding conflicts
of interest.
Beneficial Ownership of Securities. As of the August 31, 2006, the portfolio
manager beneficially owned the following dollar range of equity securities
issued by the Registrant and other Nuveen Funds managed by NAM's municipal
investment team.
---------------------------------------------------------------------------------------------------------------------------
DOLLAR
RANGE OF
DOLLAR EQUITY
RANGE OF SECURITIES
EQUITY BENEFICIALLY
SECURITIES OWNED IN
BENEFICIALLY THE
OWNED IN REMAINDER
FUND OF NUVEEN
FUNDS
MANAGED BY
NAM'S
MUNICIPAL
NAME OF PORTFOLIO INVESTMENT
MANAGER FUND TEAM
---------------------------------------------------------------------------------------------------------------------------
Scott R. Romans Nuveen California Municipal Value Fund, Inc. $0 $10,000-$50,000
---------------------------------------------------------------------------------------------------------------------------
PORTFOLIO MANAGER BIO:
Scott R. Romans, PhD, joined Nuveen Investments in 2000 as a senior analyst in
the education sector. In 2003, he was assigned management responsibility for
several closed- and open-ended municipal bond funds most of which are state
funds covering California and other western states. Currently, he manages
investments for 29 Nuveen-sponsored investment companies.
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 registrants 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, 2006
-------------------------------------------------------------------
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, 2006
-------------------------------------------------------------------
By (Signature and Title)* /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: November 8, 2006
-------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.