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
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Nuveen California Municipal Value Fund, Inc.
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(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Address of principal executive offices) (Zip code)
Kevin J. McCarthy
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
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Date of fiscal year end: August 31
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Date of reporting period: February 29, 2008
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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.
SEMI-ANNUAL REPORT
February 29, 2008
Nuveen Investments
MUNICIPAL CLOSED-END FUNDS
Photo of: Small child
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
IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R)
Logo: NUVEEN Investments
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Logo: NUVEEN Investments
Chairman's
LETTER TO SHAREHOLDERS
Photo of: Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
Every year I sign a shareholder letter that carries a date viewed by many with
concern or dread. But you, and thousands like you, have learned that the
tax-free income provided by your Nuveen Fund can help make April 15th a little
less onerous. So, once again, I am pleased to report that over the six-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
Common Share Dividend and Share Price Information, and the Performance Overview
sections of this report.
I also wanted to update you on some important news about Nuveen Investments. In
late 2007, the firm was acquired by a group led by Madison Dearborn Partners,
LLC. While this affected the corporate structure of Nuveen Investments, it had
no impact on the investment objectives, portfolio management strategies or
dividend policy of your Fund.
With the recent volatility in the stock market, many have begun to wonder which
way the market is headed, and whether they need to adjust their holdings of
investments. No one knows what the future will bring, which is why we think a
well-balanced portfolio that is structured and carefully monitored with the help
of an investment professional is an important component in achieving your long
term financial goals. A well-diversified portfolio may actually help to reduce
your overall investment risk, and we believe that investments like your Nuveen
Investments Fund can be important building blocks in a portfolio crafted to
perform well through a variety of market conditions.
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
April 15, 2008
Portfolio Manager's COMMENTS
Nuveen Investments Municipal Closed-End Funds
NCA, NCP, NCO,
NQC, NVC, NUC
Portfolio manager Scott Romans examines key investment strategies and the
six-month performance of the Nuveen California Municipal Funds. Scott, who
joined Nuveen in 2000, has managed these six Funds since 2003.
WHAT KEY STRATEGIES WERE USED TO MANAGE THE CALIFORNIA FUNDS DURING THE
SIX-MONTH REPORTING PERIOD ENDED FEBRUARY 29, 2008?
During this period, the municipal market experienced a great deal of volatility,
as factors related to the sub-prime mortgage crisis had an indirect, but
important, influence on the municipal market's performance. As the market moved
from rally to slump and back again, we sought to take advantage of this
environment by tailoring our investment strategies appropriately. Overall, we
believed the Funds were well structured going into this period. When interest
rates were low, we continued to invest conservatively by purchasing defensive,
high credit quality bonds that we believed would hold their value well when
interest rates eventually rose. When disruptions in the financial markets
triggered a backup in interest rates and the market discounted lower-quality and
higher-yielding bonds, we took a more opportunistic approach to investing. That
entailed selling some of the Funds' higher-rated defensive positions and buying
lower-rated bonds at attractive levels relative to their credit quality or
taking positions in higher-yielding bonds in order to capture the yield
advantage of the increase in rates.
The Funds also found ample opportunities to sell some holdings that were
purchased when yields were lower and replace them with similar, newer credits
that yielded comparatively more. This process enabled us to maintain the Funds'
current portfolio characteristics while strengthening their future income
streams.
Over the course of the entire reporting period, we saw the municipal yield curve
steepen, as municipal bond interest rates at the short end of the curve declined
while longer-term rates rose. In this environment, we continued to emphasize a
disciplined approach to duration1 management. As part of this strategy, we used
inverse floating rate securities, 2 a type of derivative financial instrument,
in all six of these Funds. Inverse floaters typically provide the dual benefit
of lengthening the Funds' durations to be closer to our strategic target and
enhancing their income-generation capabilities, albeit while adding risk to
their portfolio. Going into this period, all of the Funds also used forward
interest rate swaps, another type of derivative financial instrument. The goal
of this strategy was to help us manage the common share net asset value (NAV)
volatility of these Funds without having a negative impact on their income
streams or common share dividends over the short term. During this period, we
believed that the
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 An inverse floating rate security is a financial instrument designed to pay
long-term tax-exempt interest at a rate that varies inversely with a
short-term tax-exempt interest rate index. For the Nuveen Funds, the index
typically used is the Securities Industry and Financial Markets (SIFM)
Municipal Swap Index (previously referred to as the Bond Market Association
Index or BMA). Inverse floaters, including those inverse floating rate
securities in which the Funds invested during the reporting period, are
further defined within the Notes to Financial Statements and Glossary of
Terms Used in This Report sections of this shareholder report.
Discussions of specific investments are for illustrative purposes only and are
not intended as recommendations of individual investments. The views expressed
in this commentary represent those of the portfolio manager as of the date of
this report and are subject to change at any time, based on market conditions
and other factors. The Funds disclaim any obligation to advise shareholders of
such changes.
4
forward interest rate swaps had accomplished this goal, and we removed the swaps
from the Funds.
HOW DID THE FUNDS PERFORM?
Individual results for these Nuveen Funds, as well as relevant index and peer
group information, are presented in the accompanying table.
Total Returns on Common Share Net Asset Value*
For periods ended 2/29/08
Six-Month 1-Year 5-Year 10-Year
NCA(3) -1.63% -2.37% 3.58% 4.44%
NCP -4.76% -7.38% 3.43% 4.75%
NCO -5.33% -8.28% 3.32% 4.46%
NQC -4.12% -6.30% 3.24% 4.75%
NVC -4.33% -6.97% 3.59% 4.96%
NUC -3.20% -5.42% 4.04% 4.99%
Lehman Brothers CA
Tax-Exempt Bond Index(4) -1.34% -2.24% 3.46% 4.68%
Lipper CA Municipal
Debt Funds Average(5) -5.86% -8.84% 3.63% 4.50%
For the six months ended February 29, 2008, the cumulative returns on common
share NAV for all six of the Funds in this report underperformed the return on
the Lehman Brothers California Tax-Exempt Bond Index. At the same time, all six
of the Funds exceeded the average return on the Lipper California Municipal Debt
Funds Average.
The two most significant factors in the Funds' performance were
leverage-adjusted duration and the use of derivatives. Sector and credit
allocations and holdings of bonds backed by certain municipal bond insurers also
influenced the Funds' returns on common share NAV.
During this six-month period, bonds in the Lehman Brothers Index with maturities
of less than six years, especially those maturing in approximately three years,
benefited the most from changes in the interest rate environment. As a result,
these shorter maturity bonds generally outperformed credits with longer
maturities. Bonds having the longest maturities (22 years and longer) posted the
worst returns. In this market environment, the performance of NCA (which does
not use financial leverage) benefited from the fact that its duration was
shorter than the leverage-adjusted durations of the other five Funds in this
report. Among the five leveraged Funds, NUC had the shortest duration, while NVC
was among the longer durations in this report.
As mentioned earlier, all six Funds used forward interest rate swaps to
synthetically extend their durations and move the Funds closer to our strategic
duration target. Despite the fact that longer-duration instruments performed
relatively poorly, the use of
* Six-month returns are cumulative; returns for one-year, five-year, and
ten-year are 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.
3 NCA is an unleveraged Fund; the remaining five Funds in this report are
leveraged.
4 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.
5 The Lipper California Municipal Debt Funds Average is calculated using the
returns of all closed-end funds in this category for each period as
follows: six months, 24; 1 year, 24; 5 years, 24; and 10 years, 12. Fund
and Lipper returns assume reinvestment of dividends.
5
forward interest rate swaps actually had a modest positive impact on the return
performances of these Funds. This was due to the fact that the forward interest
rate swaps provided exposure to taxable markets during a period when, in
contrast to historical trends, the Treasury market and the municipal market
moved in the opposite directions. As municipal market performance lagged the
significant gains made by Treasuries, the forward interest rate swaps performed
very well, benefiting the Funds in direct proportion to the amount of forward
swap transactions used. For example, since NUC had the shortest duration among
these five Funds, it made the greatest use of forward interest rate swaps and
benefited the most from their use. At the same time, the inverse floaters used
by all six of these Funds had a negative impact on performance. This resulted
from the fact that the inverse floaters effectively increased the Funds'
exposure to longer maturity bonds during a period when shorter maturities were
in favor in the market. However, the inverse floaters also benefited the Funds
by helping to support their income streams.
Sectors of the market that generally contributed to the Funds' performances
included resource recovery, special tax, water and sewer, and electric
utilities. Pre-refunded6 bonds performed exceptionally well, due primarily to
their shorter effective maturities and higher credit quality. Among these six
Funds, NVC and NUC had the heaviest allocations of pre-refunded bonds.
On the other hand, bonds that carried any credit risk, regardless of sector,
tended to perform poorly. Revenue bonds as a whole, and specifically the
industrial development and health care sectors that had ranked among the top
performers in the Lehman Brothers Municipal Bond Index over the past few years,
underperformed the general municipal market. Lower credit quality bonds (bonds
rated BBB or below) and non-rated bonds also posted poor returns. Credits backed
by the 1998 master tobacco settlement agreement generally underperformed as
well, due to the overall lower credit quality of the tobacco sector as well as
the ample supply of these bonds. The performance of the California Funds was
also hurt by their holdings of zero coupon bonds as well as their small
positions in gas prepayment contracts for certain municipalities.
Another factor that had an impact on the performance of the California Funds was
their position in bonds backed by certain municipal insurers. All of these Funds
had exposure to bonds insured by XL Capital Assurance (XLCA) and Financial
Guaranty Insurance Company (FGIC). NCP also had a very small position in bonds
insured by ACA Financial Guaranty Corporation (ACA), which was downgraded to CCC
from A in December 2007. As concern increased about the balance sheets of
municipal bond insurers, prices on bonds insured by these companies declined,
detracting from the performance of the Funds. At the same time, all of these
Funds had holdings of bonds backed by Financial Security Assurance (FSA), which
held their value well. The California Funds that had heavier exposures to
FSA-backed bonds relative to the general market benefited from this good
performance. As a whole, the holdings of all of our Funds continued to be well
diversified not only between insured and uninsured bonds, but also within the
insured bond category.
6 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
RECENT DEVELOPMENTS REGARDING BOND INSURANCE COMPANIES
The Portfolios of Investments reflect the ratings on certain bonds insured by
AMBAC, CIFG, FGIC, MBIA and XLCA as of February 29, 2008. Subsequent to February
29, 2008, at least one rating agency reduced the rating for AMBAC-insured bonds
to AA and at least one rating agency further reduced the ratings for
CIFG-insured, FGIC-insured and XLCA-insured bonds. As of February 28, 2008, one
or more rating agencies have placed each of these insurers on "negative credit
watch", which may presage one or more rating reductions for such insurer or
insurers in the future. If one or more insurers' ratings are reduced by these
rating agencies, it would likely reduce the effective rating of many of the
bonds insured by that insurer or insurers. It is important to note that
municipal bonds historically have had a very low rate of default.
RECENT DEVELOPMENTS IN THE AUCTION RATE PREFERRED MARKETS
Beginning in February 2008, more shares were submitted for sale in the regularly
scheduled auctions for the auction preferred shares issued by these Funds than
there were offers to buy. This meant that these auctions "failed to clear" and
that many or all auction preferred shareholders who wanted to sell their shares
in these auctions were unable to do so. This decline in liquidity in auction
preferred shares did not lower the credit quality of these shares, and auctioned
preferred shareholders unable to sell their shares received distributions at the
"maximum rate" calculated in accordance with the pre-established terms of the
auctioned preferred shares. At the time this report was prepared, the Funds'
managers could not predict when future auctions might succeed in attracting
sufficient buyers for the shares offered, if ever. The Funds' managers are
working diligently to develop mechanisms designed to improve the liquidity of
the auctioned preferred shares, or to restructure them, but at present there is
no assurance that these efforts will succeed. These developments generally do
not affect the management or investment policies of these Funds. However, one
implication of these auction failures for common shareholders is that the Funds'
cost of leverage will be higher than it otherwise would have been had the
auctions continued to be successful. As a result, the Funds' future common share
earnings may be lower than they otherwise would have been.
For current, up-to-date information, please visit the Nuveen CEF Auction Rate
Preferred Resource Center at:
http://www.nuveen.com/ResourceCenter/AuctionRatePreferred.aspx.
7
Common Share
Dividend and Share Price
INFORMATION
All of the Funds in this report except NCA use financial leverage. While
leverage can add volatility to a Fund's common share NAV and common share price,
this strategy can also provide opportunities for additional income and total
return for common shareholders. The Funds' use of this strategy continued to
provide incremental income, although the extent of this benefit was reduced to a
degree in some of the Funds by short-term interest rates that remained
relatively high during the earlier part of this period. This, in turn, kept the
Funds' borrowing costs high. The Funds' income streams were also impacted as the
proceeds from older, higher-yielding bonds that matured or were called were
reinvested into bonds then available in the market, which offered lower yields
at times during this period. The combination of these factors resulted in one
monthly common share dividend reduction in NCP, NCO, and NUC over the six-month
period ended February 29, 2008. The common share dividends of NCA, NQC, and NVC
remained stable throughout this reporting period.
Due to capital gains generated by normal portfolio activity, common shareholders
of all six of these Funds received capital gains and/or net ordinary income
distributions at the end of December 2007 as follows:
Short-Term Capital Gains
Long-Term Capital Gains and/or Ordinary Income
(per share) (per share)
NCA $0.0179 --
NCP $0.0743 $0.0068
NCO $0.0744 $0.0142
NQC -- $0.0305
NVC $0.0481 --
NUC -- $0.0015
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 common share 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 common share NAV. Each Fund will, over time,
pay all of its net investment income as dividends to shareholders. As of
February 29, 2008, all of the Funds in this report had positive UNII balances,
based upon our best estimate, for tax purposes. NCA, NCP and NQC had positive
UNII balances for financial statement purposes, while NCO, NVC and NUC had
negative UNII balances for financial statement purposes.
8
As of February 29, 2008, the Funds' common share prices were trading at
discounts to their common share NAVs as shown in the accompanying chart:
2/29/08 Six-Month Average
Discount Discount
NCA -2.22% -6.26%
NCP -5.93% -8.89%
NCO -6.13% -8.85%
NQC -7.51% -9.23%
NVC -7.64% -9.64%
NUC -6.09% -8.41%
9
NCA
Performance
OVERVIEW
Nuveen California
Municipal Value
Fund, Inc.
as of February 29, 2008
Pie Chart:
Credit Quality (as a % of total investments)(1)
AAA/U.S. Guaranteed 53%
AA 7%
A 22%
BBB 12%
N/R 6%
Bar Chart:
2007-2008 Monthly Tax-Free Dividends Per Common Share(3)
Mar 0.0385
Apr 0.0385
May 0.0385
Jun 0.0365
Jul 0.0365
Aug 0.0365
Sep 0.0365
Oct 0.0365
Nov 0.0365
Dec 0.0365
Jan 0.0365
Feb 0.0365
Line Chart:
Common Share Price Performance -- Weekly Closing Price
3/01/07 9.99
10.0234
9.97
9.93
9.94
10.2
10.16
10.01
9.96
10.2
10.19
10.3
10.27
9.99
10.06
9.79
9.63
9.56
9.58
9.56
9.48
9.5
9.25
9.3
9.328
9.32
9.7
9.65
9.46
9.51
9.38
9.37
9.28
9.28
9.24
9.27
9.51
9.08
9.15
9.07
9.03
9.1
8.92
8.79
9.12
9.61
9.668
9.53
9.52
9.63
9.73
9.54
9.402
2/29/08 9.27
FUND SNAPSHOT
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Common Share Price $9.27
------------------------------------
Common Share
Net Asset Value $9.48
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Premium/(Discount) to NAV -2.22%
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Market Yield 4.72%
------------------------------------
Taxable-Equivalent Yield(2) 7.23%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $239,221
------------------------------------
Average Effective Maturity
on Securities (Years) 16.34
------------------------------------
Modified Duration 8.55
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 10/07/87)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) -1.47% -1.63%
------------------------------------
1-Year -2.71% -2.37%
------------------------------------
5-Year 4.15% 3.58%
------------------------------------
10-Year 4.64% 4.44%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 32.2%
------------------------------------
U.S. Guaranteed 30.0%
------------------------------------
Health Care 8.1%
------------------------------------
Water and Sewer 5.5%
------------------------------------
Tax Obligation/General 4.9%
------------------------------------
Long-Term Care 4.3%
------------------------------------
Other 15.0%
------------------------------------
1 The percentages shown in the foregoing chart reflect the ratings on certain
bonds insured by AMBAC, FGIC, MBIA and XLCA as of February 29, 2008. As
explained earlier in the Portfolio Manager's Comments section of this
report, at least one rating agency reduced the rating for AMBAC-insured
bonds to AA and at least one rating agency further reduced the ratings for
FGIC-insured and XLCA-insured bonds. One or more rating agencies have
placed each of these insurers on "negative credit watch", which may presage
one or more rating reductions for such insurer or insurers in the future.
If one or more insurers' ratings are reduced by these rating agencies, it
would likely reduce the effective rating of many of the bonds insured by
that insurer or insurers, and thereby reduce the percentage of the ratings
shown in the foregoing chart.
2 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 34.7%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
3 The Fund paid shareholders a capital gains distribution in December 2007 of
$0.0179 per share.
10
NCP
Performance
OVERVIEW
Nuveen California
Performance Plus
Municipal Fund, Inc.
as of February 29, 2008
Pie Chart:
Credit Quality (as a % of total investments)(1)
AAA/U.S. Guaranteed 55%
AA 15%
A 15%
BBB 11%
N/R 4%
Bar Chart:
2007-2008 Monthly Tax-Free Dividends Per Common Share(3)
Mar 0.0595
Apr 0.0595
May 0.0595
Jun 0.0595
Jul 0.0595
Aug 0.0595
Sep 0.0595
Oct 0.0565
Nov 0.0565
Dec 0.0565
Jan 0.0565
Feb 0.0565
Line Chart:
Common Share Price Performance -- Weekly Closing Price
3/01/07 14.84
14.76
14.76
14.74
14.7
14.9
15.07
14.97
14.94
15.02
15.05
14.93
15
14.93
15.05
14.6
14.44
14.26
14.3901
14.77
14.45
14.13
14.18
14.02
13.81
13.68
13.78
14.07
14.07
14.339
14.1
13.91
13.8
13.57
13.65
13.5899
13.71
13.38
13.44
13.35
13.17
13.33
12.97
12.93
13.08
13.75
13.78
13.68
13.7101
13.82
13.88
13.17
13.0001
2/29/08 12.86
FUND SNAPSHOT
------------------------------------
Common Share Price $12.86
------------------------------------
Common Share
Net Asset Value $13.67
------------------------------------
Premium/(Discount) to NAV -5.93%
------------------------------------
Market Yield 5.27%
------------------------------------
Taxable-Equivalent Yield(2) 8.07%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $177,189
------------------------------------
Average Effective Maturity
on Securities (Years) 15.97
------------------------------------
Leverage-Adjusted Duration 13.11
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/15/89)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) -5.70% -4.76%
------------------------------------
1-Year -7.84% -7.38%
------------------------------------
5-Year 4.09% 3.43%
------------------------------------
10-Year 3.09% 4.75%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 21.6%
------------------------------------
Transportation 16.5%
------------------------------------
Tax Obligation/General 12.8%
------------------------------------
U.S. Guaranteed 11.6%
------------------------------------
Water and Sewer 10.5%
------------------------------------
Utilities 7.2%
------------------------------------
Health Care 6.6%
------------------------------------
Education and Civic
Organizations 5.5%
------------------------------------
Other 7.7%
------------------------------------
1 The percentages shown in the foregoing chart reflect the ratings on certain
bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of February 29, 2008.
As explained earlier in the Portfolio Manager's Comments section of this
report, at least one rating agency reduced the rating for AMBAC-insured
bonds to AA and at least one rating agency further reduced the ratings for
CIFG-insured, FGIC-insured and XLCA-insured bonds. One or more rating
agencies have placed each of these insurers on "negative credit watch",
which may presage one or more rating reductions for such insurer or
insurers in the future. If one or more insurers' ratings are reduced by
these rating agencies, it would likely reduce the effective rating of many
of the bonds insured by that insurer or insurers, and thereby reduce the
percentage of the ratings shown in the foregoing chart.
2 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 34.7%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
3 The Fund paid shareholders capital gains and net ordinary income
distributions in December 2007 of $0.0811 per share.
11
NCO
Performance
OVERVIEW
Nuveen California
Municipal Market
Opportunity Fund, Inc.
as of February 29, 2008
Pie Chart:
Credit Quality (as a % of total investments)(1)
AAA/U.S. Guaranteed 55%
AA 16%
A 18%
BBB 9%
N/R 2%
Bar Chart:
2007-2008 Monthly Tax-Free Dividends Per Common Share(3)
Mar 0.064
Apr 0.064
May 0.064
Jun 0.0605
Jul 0.0605
Aug 0.0605
Sep 0.0605
Oct 0.0575
Nov 0.0575
Dec 0.0575
Jan 0.0575
Feb 0.0575
Line Chart:
Common Share Price Performance -- Weekly Closing Price
3/01/07 15.92
15.75
15.79
15.87
15.76
15.85
15.92
15.79
15.7501
16.02
15.95
16.23
16.2
15.78
15.91
15.07
14.55
14.49
14.65
14.67
14.47
14.6
14.43
14.52
14.46
14.43
14.55
14.36
14.57
14.55
13.9
14.15
13.93
13.9
13.89
13.81
13.72
13.45
13.05
13.09
13.26
13.48
13.09
13
13.17
13.87
13.88
13.86
13.88
13.94
14.05
13.32
13.27
2/29/08 12.86
FUND SNAPSHOT
------------------------------------
Common Share Price $12.86
------------------------------------
Common Share
Net Asset Value $13.70
------------------------------------
Premium/(Discount) to NAV -6.13%
------------------------------------
Market Yield 5.37%
------------------------------------
Taxable-Equivalent Yield(2) 8.22%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $111,871
------------------------------------
Average Effective Maturity
on Securities (Years) 16.69
------------------------------------
Leverage-Adjusted Duration 13.18
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 5/17/90)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) -7.52% -5.33%
------------------------------------
1-Year -13.82% -8.28%
------------------------------------
5-Year 3.96% 3.32%
------------------------------------
10-Year 3.29% 4.46%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
U.S. Guaranteed 18.0%
------------------------------------
Tax Obligation/Limited 17.3%
------------------------------------
Water and Sewer 15.3%
------------------------------------
Transportation 14.9%
------------------------------------
Tax Obligation/General 13.0%
------------------------------------
Health Care 10.9%
------------------------------------
Other 10.6%
------------------------------------
1 The percentages shown in the foregoing chart reflect the ratings on certain
bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of February 29, 2008.
As explained earlier in the Portfolio Manager's Comments section of this
report, at least one rating agency reduced the rating for AMBAC-insured
bonds to AA and at least one rating agency further reduced the ratings for
CIFG-insured, FGIC-insured and XLCA-insured bonds. One or more rating
agencies have placed each of these insurers on "negative credit watch",
which may presage one or more rating reductions for such insurer or
insurers in the future. If one or more insurers' ratings are reduced by
these rating agencies, it would likely reduce the effective rating of many
of the bonds insured by that insurer or insurers, and thereby reduce the
percentage of the ratings shown in the foregoing chart.
2 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 34.7%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
3 The Fund paid shareholders capital gains and net ordinary income
distributions in December 2007 of $0.0886 per share.
12
NQC
Performance
OVERVIEW
Nuveen California Investment Quality Municipal Fund, Inc.
as of February 29, 2008
Pie Chart:
Credit Quality (as a % of total investments)(1)
AAA/U.S. Guaranteed 55%
AA 13%
A 17%
BBB 11%
N/R 4%
Bar Chart:
2007-2008 Monthly Tax-Free Dividends Per Common Share(3)
Mar 0.0585
Apr 0.0585
May 0.0585
Jun 0.0585
Jul 0.0585
Aug 0.0585
Sep 0.0585
Oct 0.0585
Nov 0.0585
Dec 0.0585
Jan 0.0585
Feb 0.0585
Line Chart:
Common Share Price Performance -- Weekly Closing Price
3/01/07 14.87
14.88
14.9
14.85
14.94
15.04
15.12
15.01
14.9
15.02
14.98
14.92
14.95
14.9
14.95
14.69
14.26
14.11
14.13
14
14.05
13.92
13.64
13.84
13.6
13.53
13.9
13.74
13.9201
14
13.64
13.8
13.73
13.715
13.67
13.72
13.83
13.55
12.93
12.96
13.07
13.44
13.04
12.94
13.07
13.79
13.96
13.7599
13.99
14.02
14.07
13.5201
13.36
2/29/08 12.8
FUND SNAPSHOT
------------------------------------
Common Share Price $12.80
------------------------------------
Common Share
Net Asset Value $13.84
------------------------------------
Premium/(Discount) to NAV -7.51%
------------------------------------
Market Yield 5.48%
------------------------------------
Taxable-Equivalent Yield(2) 8.39%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $187,998
------------------------------------
Average Effective Maturity
on Securities (Years) 16.98
------------------------------------
Leverage-Adjusted Duration 13.90
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/20/90)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) -4.18% -4.12%
------------------------------------
1-Year -9.96% -6.30%
------------------------------------
5-Year 3.68% 3.24%
------------------------------------
10-Year 3.36% 4.75%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 26.5%
------------------------------------
Transportation 18.2%
------------------------------------
U.S. Guaranteed 15.0%
------------------------------------
Education and Civic
Organizations 9.0%
------------------------------------
Tax Obligation/General 7.8%
------------------------------------
Health Care 7.2%
------------------------------------
Water and Sewer 4.8%
------------------------------------
Other 11.5%
------------------------------------
1 The percentages shown in the foregoing chart reflect the ratings on certain
bonds insured by AMBAC, FGIC, MBIA and XLCA as of February 29, 2008. As
explained earlier in the Portfolio Manager's Comments section of this
report, at least one rating agency reduced the rating for AMBAC-insured
bonds to AA and at least one rating agency further reduced the ratings for
FGIC-insured and XLCA-insured bonds. One or more rating agencies have
placed each of these insurers on "negative credit watch", which may presage
one or more rating reductions for such insurer or insurers in the future.
If one or more insurers' ratings are reduced by these rating agencies, it
would likely reduce the effective rating of many of the bonds insured by
that insurer or insurers, and thereby reduce the percentage of the ratings
shown in the foregoing chart.
2 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 34.7%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
3 The Fund paid shareholders capital gains and net ordinary income
distributions in December 2007 of $0.0305 per share.
13
NVC
Performance
OVERVIEW
Nuveen California
Select Quality
Municipal Fund, Inc.
as of February 29, 2008
Pie Chart:
Credit Quality (as a % of total investments)(1)
AAA/U.S.
Guaranteed 60%
AA 11%
A 18%
BBB 9%
N/R 2%
Bar Chart:
2007-2008 Monthly Tax-Free Dividends Per Common Share(3)
Mar 0.061
Apr 0.061
May 0.061
Jun 0.061
Jul 0.061
Aug 0.061
Sep 0.058
Oct 0.058
Nov 0.058
Dec 0.058
Jan 0.058
Feb 0.058
Line Chart:
Common Share Price Performance -- Weekly Closing Price
3/01/07 15.25
15.21
15.16
15.03
15.04
15.04
15.14
15.12
15.113
15.2
15.18
15.22
15.1699
15.2
15.19
14.67
14.44
14.3
14.29
14.18
14.09
14.09
13.78
14.05
13.85
13.51
14.05
13.97
14.02
13.96
13.78
13.77
13.73
13.63
13.56
13.6499
13.51
13.14
12.92
12.92
13.15
13.26
12.86
12.95
13.04
13.61
13.82
13.68
13.84
14.04
13.99
13.36
13.29
2/29/08 12.7
FUND SNAPSHOT
------------------------------------
Common Share Price $12.70
------------------------------------
Common Share
Net Asset Value $13.75
------------------------------------
Premium/(Discount) to NAV -7.64%
------------------------------------
Market Yield 5.48%
------------------------------------
Taxable-Equivalent Yield(2) 8.39%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $317,927
------------------------------------
Average Effective Maturity
on Securities (Years) 16.01
------------------------------------
Leverage-Adjusted Duration 13.70
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 5/22/91)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) -6.37% -4.33%
------------------------------------
1-Year -12.53% -6.97%
------------------------------------
5-Year 3.43% 3.59%
------------------------------------
10-Year 3.63% 4.96%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
U.S. Guaranteed 25.2%
------------------------------------
Tax Obligation/Limited 18.2%
------------------------------------
Tax Obligation/General 11.8%
------------------------------------
Health Care 10.9%
------------------------------------
Transportation 10.9%
------------------------------------
Utilities 9.5%
------------------------------------
Other 13.5%
------------------------------------
1 The percentages shown in the foregoing chart reflect the ratings on certain
bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of February 29, 2008.
As explained earlier in the Portfolio Manager's Comments section of this
report, at least one rating agency reduced the rating for AMBAC-insured
bonds to AA and at least one rating agency further reduced the ratings for
CIFG-insured, FGIC-insured and XLCA-insured bonds. One or more rating
agencies have placed each of these insurers on "negative credit watch",
which may presage one or more rating reductions for such insurer or
insurers in the future. If one or more insurers' ratings are reduced by
these rating agencies, it would likely reduce the effective rating of many
of the bonds insured by that insurer or insurers, and thereby reduce the
percentage of the ratings shown in the foregoing chart.
2 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 34.7%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
3 The Fund paid shareholders a capital gains distribution in December 2007 of
$0.0481 per share.
14
NUC
Performance
OVERVIEW
Nuveen California
Quality Income
Municipal Fund, Inc.
as of February 29, 2008
Pie Chart:
Credit Quality (as a % of total investments)(1)
AAA/U.S.
Guaranteed 66%
AA 10%
A 12%
BBB 9%
N/R 3%
Bar Chart:
2007-2008 Monthly Tax-Free Dividends Per Common Share(3)
Mar 0.0625
Apr 0.0625
May 0.0625
Jun 0.0625
Jul 0.0625
Aug 0.0625
Sep 0.0625
Oct 0.0595
Nov 0.0595
Dec 0.0595
Jan 0.0595
Feb 0.0595
Line Chart:
Common Share Price Performance -- Weekly Closing Price
3/01/07 15.57
15.51
15.57
15.26
15.24
15.31
15.52
15.22
15.18
15.31
15.44
15.51
15.349
15.31
15.27
15.24
15.0099
14.91
14.85
14.75
14.58
14.574
14.39
14.31
14.41
14.05
13.97
14.08
14.42
14.75
14.21
14.36
14.2
14.09
13.92
13.8
14.054
13.61
13.3
13.4
13.54
13.75
13.31
13.29
13.39
14.11
14.12
13.95
14.22
14.28
14.3
13.68
13.5299
2/29/08 13.25
FUND SNAPSHOT
------------------------------------
Common Share Price $13.25
------------------------------------
Common Share
Net Asset Value $14.11
------------------------------------
Premium/(Discount) to NAV -6.09%
------------------------------------
Market Yield 5.39%
------------------------------------
Taxable-Equivalent Yield(2) 8.25%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $310,691
------------------------------------
Average Effective Maturity
on Securities (Years) 15.04
------------------------------------
Leverage-Adjusted Duration 12.48
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/20/91)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) -3.43% -3.20%
------------------------------------
1-Year -11.14% -5.42%
------------------------------------
5-Year 3.22% 4.04%
------------------------------------
10-Year 3.68% 4.99%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
U.S. Guaranteed 31.4%
------------------------------------
Tax Obligation/Limited 20.5%
------------------------------------
Tax Obligation/General 11.3%
------------------------------------
Transportation 8.8%
------------------------------------
Health Care 8.0%
------------------------------------
Utilities 4.7%
------------------------------------
Water and Sewer 4.4%
------------------------------------
Other 10.9%
------------------------------------
1 The percentages shown in the foregoing chart reflect the ratings on certain
bonds insured by AMBAC, FGIC, MBIA and XLCA as of February 29, 2008. As
explained earlier in the Portfolio Manager's Comments section of this
report, at least one rating agency reduced the rating for AMBAC-insured
bonds to AA and at least one rating agency further reduced the ratings for
FGIC-insured and XLCA-insured bonds. One or more rating agencies have
placed each of these insurers on "negative credit watch", which may presage
one or more rating reductions for such insurer or insurers in the future.
If one or more insurers' ratings are reduced by these rating agencies, it
would likely reduce the effective rating of many of the bonds insured by
that insurer or insurers, and thereby reduce the percentage of the ratings
shown in the foregoing chart.
2 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 34.7%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
3 The Fund paid shareholders a net ordinary income distribution in December
2007 of $0.0015 per share.
15
NCA
NCP
NCO
Shareholder MEETING REPORT
The annual meeting of shareholders was held in the offices of Nuveen Investments
on December 18, 2007; at this meeting shareholders were asked to vote on the
election of Board Members. Additionally, a special meeting of shareholders was
held in the offices of Nuveen Investments on October 12, 2007; at this meeting
shareholders were asked to vote on a new Investment Management Agreement and to
ratify the selection of Ernst & Young LLP as the Funds' independent registered
public accounting firm.
CALIFORNIA CALIFORNIA CALIFORNIA
VALUE PERFORMANCE PLUS OPPORTUNITY
(NCA) (NCP) (NCO)
------------------------------------------------------------------------------------------------------------------------------------
TO APPROVE A NEW INVESTMENT
MANAGEMENT AGREEMENT:
Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting
Common together together together together
Shares as a class as a class as a class as a class
====================================================================================================================================
For 12,827,732 6,728,775 -- 4,107,563 --
Against 511,386 364,258 -- 89,605 --
Abstain 707,591 256,572 -- 263,546 --
Broker Non-Votes 4,008,957 1,726,045 -- 1,315,249 --
------------------------------------------------------------------------------------------------------------------------------------
Total 18,055,666 9,075,650 -- 5,775,963 --
====================================================================================================================================
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS:
Robert P. Bremner
For -- 11,529,008 -- 6,937,866 --
Withhold -- 339,069 -- 146,001 --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 11,868,077 -- 7,083,867 --
====================================================================================================================================
Jack B. Evans
For -- 11,527,135 -- 6,941,542 --
Withhold -- 340,942 -- 142,325 --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 11,868,077 -- 7,083,867 --
====================================================================================================================================
William C. Hunter
For -- 11,529,786 -- 6,941,292 --
Withhold -- 338,291 -- 142,575 --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 11,868,077 -- 7,083,867 --
====================================================================================================================================
David J. Kundert
For -- 11,528,663 -- 6,941,792 --
Withhold -- 339,414 -- 142,075 --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 11,868,077 -- 7,083,867 --
====================================================================================================================================
William J. Schneider
For -- -- 3,609 -- 2,193
Withhold -- -- -- -- 1
------------------------------------------------------------------------------------------------------------------------------------
Total -- -- 3,609 -- 2,194
====================================================================================================================================
Timothy R. Schwertfeger
For 22,697,624 -- 3,609 -- 2,193
Withhold 312,749 -- -- -- 1
------------------------------------------------------------------------------------------------------------------------------------
Total 23,010,373 -- 3,609 -- 2,194
====================================================================================================================================
Judith M. Stockdale
For 22,698,793 11,524,606 -- 6,912,616 --
Withhold 311,580 343,471 -- 171,251 --
------------------------------------------------------------------------------------------------------------------------------------
Total 23,010,373 11,868,077 -- 7,083,867 --
====================================================================================================================================
Carole E. Stone
For 22,711,086 11,530,199 -- 6,917,592 --
Withhold 299,287 337,878 -- 166,275 --
------------------------------------------------------------------------------------------------------------------------------------
Total 23,010,373 11,868,077 -- 7,083,867 --
====================================================================================================================================
TO RATIFY THE SELECTION OF
ERNST & YOUNG LLP AS THE
INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM FOR THE
CURRENT FISCAL YEAR:
For 17,463,023 8,853,191 -- 5,551,489 --
Against 162,663 101,134 -- 40,343 --
Abstain 429,980 121,325 -- 184,131 --
------------------------------------------------------------------------------------------------------------------------------------
Total 18,055,666 9,075,650 -- 5,775,963 --
====================================================================================================================================
16
NQC
NVC
NUC
CALIFORNIA CALIFORNIA CALIFORNIA
INVESTMENT QUALITY SELECT QUALITY QUALITY INCOME
(NQC) (NVC) (NUC)
------------------------------------------------------------------------------------------------------------------------------------
TO APPROVE A NEW INVESTMENT MANAGEMENT AGREEMENT:
Common and Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting shares voting shares voting
together together together together together together
as a class as a class as a class as a class as a class as a class
====================================================================================================================================
For 6,612,704 -- 11,923,403 -- 10,762,579 --
Against 246,481 -- 506,484 -- 323,633 --
Abstain 356,820 -- 505,100 -- 490,675 --
Broker Non-Votes 1,819,909 -- 3,569,083 -- 3,603,523 --
------------------------------------------------------------------------------------------------------------------------------------
Total 9,035,914 -- 16,504,070 -- 15,180,410 --
====================================================================================================================================
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS:
Robert P. Bremner
For 12,140,388 -- 20,655,926 -- 19,883,455 --
Withhold 211,868 -- 415,198 -- 462,958 --
------------------------------------------------------------------------------------------------------------------------------------
Total 12,352,256 -- 21,071,124 -- 20,346,413 --
====================================================================================================================================
Jack B. Evans
For 12,144,446 -- 20,662,368 -- 19,894,436 --
Withhold 207,810 -- 408,756 -- 451,977 --
------------------------------------------------------------------------------------------------------------------------------------
Total 12,352,256 -- 21,071,124 -- 20,346,413 --
====================================================================================================================================
William C. Hunter
For 12,145,162 -- 20,660,891 -- 19,893,202 --
Withhold 207,094 -- 410,233 -- 453,211 --
------------------------------------------------------------------------------------------------------------------------------------
Total 12,352,256 -- 21,071,124 -- 20,346,413 --
====================================================================================================================================
David J. Kundert
For 12,144,088 -- 20,653,154 -- 19,888,871 --
Withhold 208,168 -- 417,970 -- 457,542 --
------------------------------------------------------------------------------------------------------------------------------------
Total 12,352,256 -- 21,071,124 -- 20,346,413 --
====================================================================================================================================
William J. Schneider
For -- 3,721 -- 6,073 -- 6,010
Withhold -- 7 -- 1 -- 3
------------------------------------------------------------------------------------------------------------------------------------
Total -- 3,728 -- 6,074 -- 6,013
====================================================================================================================================
Timothy R. Schwertfeger
For -- 3,721 -- 6,073 -- 6,010
Withhold -- 7 -- 1 -- 3
------------------------------------------------------------------------------------------------------------------------------------
Total -- 3,728 -- 6,074 -- 6,013
====================================================================================================================================
Judith M. Stockdale
For 12,134,554 -- 20,667,554 -- 19,891,079 --
Withhold 217,702 -- 403,570 -- 455,334 --
------------------------------------------------------------------------------------------------------------------------------------
Total 12,352,256 -- 21,071,124 -- 20,346,413 --
====================================================================================================================================
Carole E. Stone
For 12,133,139 -- 20,672,621 -- 19,885,828 --
Withhold 219,117 -- 398,503 -- 460,585 --
------------------------------------------------------------------------------------------------------------------------------------
Total 12,352,256 -- 21,071,124 -- 20,346,413 --
====================================================================================================================================
TO RATIFY THE SELECTION OF
ERNST & YOUNG LLP AS THE
INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM FOR THE
CURRENT FISCAL YEAR:
For 8,692,912 -- 15,882,726 -- 14,730,187 --
Against 76,699 -- 199,555 -- 85,509 --
Abstain 266,303 -- 421,789 -- 364,714 --
------------------------------------------------------------------------------------------------------------------------------------
Total 9,035,914 -- 16,504,070 -- 15,180,410 --
====================================================================================================================================
17
NCA
Nuveen California Municipal Value Fund, Inc.
Portfolio of INVESTMENTS
February 29, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 3.5% (3.3% OF TOTAL INVESTMENTS)
$ 590 California County Tobacco Securitization Agency, Tobacco Settlement 6/15 at 100.00 BBB $ 541,856
Asset-Backed Bonds, Sonoma County Tobacco Securitization
Corporation, Series 2005, 4.250%, 6/01/21
2,000 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 1,787,740
Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2007A-1,
5.750%, 6/01/47
10,110 Golden State Tobacco Securitization Corporation, California, 6/22 at 100.00 BBB 6,038,198
Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2007A-2,
0.000%, 6/01/37
------------------------------------------------------------------------------------------------------------------------------------
12,700 Total Consumer Staples 8,367,794
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 0.8% (0.7% OF TOTAL INVESTMENTS)
140 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 A3 127,532
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 91,458
125 5.000%, 11/01/25 11/15 at 100.00 A2 115,719
1,500 California Statewide Community Development Authority, Certificates 6/08 at 104.00 N/R 1,542,735
of Participation, San Diego Space and Science Foundation,
Series 1996, 7.500%, 12/01/26
------------------------------------------------------------------------------------------------------------------------------------
1,860 Total Education and Civic Organizations 1,877,444
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 8.6% (8.1% OF TOTAL INVESTMENTS)
625 Arcadia, California, Hospital Revenue Bonds, Methodist Hospital 5/08 at 100.00 BBB+ 626,044
of Southern California, Series 1992, 6.500%, 11/15/12
1,245 California Health Facilities Financing Authority, Revenue Bonds, 11/15 at 100.00 A2 1,148,475
Cedars-Sinai Medical Center, Series 2005, 5.000%, 11/15/34
310 California Health Facilities Financing Authority, Revenue Bonds, 4/16 at 100.00 A+ 274,341
Kaiser Permanante System, Series 2006, 5.000%, 4/01/37
5,365 California Health Facilities Financing Authority, Revenue Bonds, 11/16 at 100.00 AA- 4,931,508
Sutter Health, Series 2007A, 5.250%, 11/15/46 (UB)
4,380 California Statewide Community Development Authority, Revenue 3/16 at 100.00 A+ 3,884,885
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+ 1,363,961
Bonds, Kaiser Permanente System, Series 2001C, 5.250%, 8/01/31
2,710 California Statewide Community Development Authority, Revenue No Opt. Call AAA 2,743,577
Bonds, Sherman Oaks Health System, Series 1998A,
5.000%, 8/01/22 - AMBAC Insured
1,845 Rancho Mirage Joint Powers Financing Authority, California, Revenue 7/17 at 100.00 A3 1,631,700
Bonds, Eisenhower Medical Center, Series 2007A, 5.000%, 7/01/38
1,000 Sierra View Local Health Care District, California, Revenue Bonds, 9/17 at 100.00 N/R 893,200
Series 2007, 5.250%, 7/01/37
1,440 Stockton, California, Health Facility Revenue Bonds, Dameron 6/08 at 102.00 BBB+ 1,456,315
Hospital Association, Series 1997A, 5.300%, 12/01/08
1,730 West Contra Costa Healthcare District, California, Certificates 7/14 at 100.00 AAA 1,637,618
of Participation, Series 2004, 5.375%, 7/01/21 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
22,110 Total Health Care 20,591,624
------------------------------------------------------------------------------------------------------------------------------------
18
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 4.1% (3.9% OF TOTAL INVESTMENTS)
$ 5,935 California Housing Finance Agency, Mulitfamily Housing Revenue No Opt. Call AAA $ 5,539,974
Bonds III, Series 2003A Select Auction Rate Securities,
5.462%, 2/01/38 - MBIA Insured (Alternative Minimum Tax) (5)
2,505 California Statewide Community Development Authority, Multifamily 7/09 at 102.00 N/R 2,510,261
Housing Revenue Bonds, Harbor City Lights, Series 1999Y,
6.650%, 7/01/39 (Alternative Minimum Tax)
455 Riverside County, California, Subordinate Lien Mobile Home Park 4/08 at 100.00 N/R 420,020
Revenue Bonds, Bravo Mobile Home Park Project, Series 1999B,
6.500%, 3/20/29
1,440 San Dimas Housing Authority, California, Mobile Home Park Revenue 7/08 at 102.00 N/R 1,315,267
Bonds, Charter Oak Mobile Home Estates Acquisition Project,
Series 1998A, 5.700%, 7/01/28
------------------------------------------------------------------------------------------------------------------------------------
10,335 Total Housing/Multifamily 9,785,522
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.2% (0.1% OF TOTAL INVESTMENTS)
365 California Housing Finance Agency, Home Mortgage Revenue 2/16 at 100.00 Aa2 378,531
Bonds, Series 2006H, 5.750%, 8/01/30 - FGIC Insured
(Alternative Minimum Tax)
5 California Rural Home Mortgage Finance Authority, GNMA No Opt. Call AAA 5,219
Collateralized Single Family Mortgage Revenue Bonds,
Series 1993A-2, 7.950%, 12/01/24 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
370 Total Housing/Single Family 383,750
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.4% (0.4% OF TOTAL INVESTMENTS)
1,000 California Pollution Control Financing Authority, Solid Waste 1/16 at 102.00 BBB 895,080
Disposal Revenue Bonds, Waste Management Inc., Series 2002A,
5.000%, 1/01/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 4.5% (4.3% 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+ 1,835,422
2,130 5.600%, 8/15/34 8/14 at 100.00 A+ 2,091,021
2,720 ABAG Finance Authority for Non-Profit Corporations, California, 4/08 at 102.00 BBB- 2,727,589
Certificates of Participation, American Baptist Homes of the West,
Series 1997A, 5.750%, 10/01/17
2,640 California Statewide Community Development Authority, Certificates 4/09 at 101.00 BBB 2,643,194
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- 1,503,330
Certificates of Participation, Air Force Village West, Series 1999,
5.750%, 5/15/19
------------------------------------------------------------------------------------------------------------------------------------
10,840 Total Long-Term Care 10,800,556
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 5.2% (4.9% OF TOTAL INVESTMENTS)
5 California State, General Obligation Bonds, Series 2004, 4/14 at 100.00 A+ 4,863
5.250%, 4/01/34
California, General Obligation Bonds, Series 2004:
500 5.000%, 2/01/20 2/14 at 100.00 A+ 499,935
5,200 5.000%, 2/01/21 2/14 at 100.00 A+ 5,135,988
1,500 Los Angeles Unified School District, California, General Obligation 7/16 at 100.00 AA- 1,488,330
Bonds, Series 2006F, 5.000%, 7/01/24 - FGIC Insured
2,000 Puerto Rico, General Obligation and Public Improvement Bonds, No Opt. Call AAA 2,056,740
Series 2001A, 5.500%, 7/01/20 - MBIA Insured
270 Roseville Joint Union High School District, Placer County, 8/15 at 100.00 AA- 263,758
California, General Obligation Bonds, Series 2006B,
5.000%, 8/01/27 - FGIC Insured
1,500 San Ramon Valley Unified School District, Contra Costa County, 8/13 at 100.00 AAA 1,504,170
California, General Obligation Bonds, Series 2003, 5.000%, 8/01/23 -
FSA Insured
1,460 West Contra Costa Unified School District, Contra Costa County, 8/11 at 101.00 AAA 1,479,871
California, General Obligation Bonds, Series 2003B,
5.000%, 8/01/20 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
12,435 Total Tax Obligation/General 12,433,655
------------------------------------------------------------------------------------------------------------------------------------
19
NCA
Nuveen California Municipal Value Fund, Inc. (continued)
Portfolio of INVESTMENTS February 29, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 34.1% (32.2% OF TOTAL INVESTMENTS)
$ 1,000 Artesia Redevelopment Agency, California, Tax Allocation Revenue 6/15 at 100.00 BBB $ 907,370
Bonds, Artesia Redevelopment Project Area, Series 2007,
5.375%, 6/01/27
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 3,001,260
1,000 5.625%, 10/01/33 - RAAI Insured 10/13 at 100.00 AA 978,060
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 A 1,721,063
5,010 5.750%, 12/01/33 - FGIC Insured 12/13 at 100.00 A 5,090,310
2,400 Calexico Community Redevelopment Agency, California, Tax 8/13 at 102.00 AAA 2,261,064
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+ 1,885,156
5.000%, 7/01/15
340 Capistrano Unified School District, Orange County, California, 9/15 at 100.00 A 317,516
Special Tax Bonds, Community Facilities District, Series 2005,
5.000%, 9/01/24 - FGIC Insured
1,005 Chino Redevelopment Agency, California, Merged Chino 9/16 at 101.00 AAA 925,535
Redevelopment Project Area Tax Allocation Bonds, Series 2006,
5.000%, 9/01/38 - AMBAC Insured
Golden State Tobacco Securitization Corporation, California,
Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A:
20,110 5.000%, 6/01/35 - FGIC Insured (UB) 6/15 at 100.00 A 18,643,378
2,345 5.000%, 6/01/38 - FGIC Insured (UB) 6/15 at 100.00 A 2,159,980
Irvine, California, Unified School District, Community Facilities
District Special Tax Bonds, Series 2006A:
160 5.000%, 9/01/26 9/16 at 100.00 N/R 140,395
375 5.125%, 9/01/36 9/16 at 100.00 N/R 318,956
2,500 Kern County Board of Education, California, Certificates of 6/16 at 100.00 AAA 2,352,475
Participation, Series 2006A, 5.000%, 6/01/31 - MBIA Insured
615 Los Angeles Community Redevelopment Agency, California, 9/15 at 100.00 Aaa 558,734
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 2,650,918
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 3/08 at 103.00 N/R 3,790,306
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 1,045,564
1,145 5.250%, 9/01/23 - AMBAC Insured 9/14 at 100.00 AAA 1,135,416
1,255 5.250%, 9/01/24 - AMBAC Insured 9/14 at 100.00 AAA 1,235,949
420 Oakland Redevelopment Agency, California, Subordinate Lien 3/13 at 100.00 A 438,539
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 8,271,360
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 A- 268,789
Merged Project Area, Series 2005A, 5.000%, 9/01/35 -
XLCA Insured
5,000 Riverside County Redevelopment Agency, California, Tax Allocation 10/14 at 100.00 A- 4,615,950
Housing Bonds, Series 2004A, 5.000%, 10/01/37 - XLCA Insured
360 Roseville, California, Certificates of Participation, Public 8/13 at 100.00 AAA 346,766
Facilities, Series 2003A, 5.000%, 8/01/25 - AMBAC Insured
20
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 $ 3,157,294
Bonds, Moscone Convention Center, Series 2004, 5.250%, 7/01/23 -
AMBAC Insured
2,750 San Jose Financing Authority, California, Lease Revenue Refunding 9/11 at 100.00 AAA 2,769,745
Bonds, Convention Center Project, Series 2001F, 5.000%, 9/01/20 -
MBIA Insured
625 San Mateo Union High School District, San Mateo County, 12/17 at 100.00 AAA 576,244
California, Certificates of Participation, Phase 1, Series 2007A,
5.000%, 12/15/30 - AMBAC Insured
1,080 Shafter Joint Powers Financing Authority, California, Lease 7/08 at 100.50 A 1,087,927
Revenue Bonds, Community Correctional Facility Acquisition
Project, Series 1997A, 5.950%, 1/01/11
1,000 Simi Valley, California, Certificates of Participation, Series 2004, 9/14 at 100.00 AAA 964,810
5.000%, 9/01/24 - AMBAC Insured
1,500 Tehachapi Redevelopment Agency, California, Tax Allocation No Opt. Call AA 1,363,890
Bonds, Series 2007, 5.250%, 12/01/37 - RAAI Insured
1,925 Travis Unified School District, Solano County, California, 9/16 at 100.00 A3 1,835,603
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 3,704,465
Certificates Participation, Series 2003, 5.000%, 12/01/27 -
AMBAC Insured
1,185 Vista Joint Powers Financing Authority, California, Special Tax 3/08 at 100.00 N/R 1,144,343
Lease Revenue Refunding Bonds, Community Facilities
District 90-2, Series 1997A, 5.875%, 9/01/20
------------------------------------------------------------------------------------------------------------------------------------
84,320 Total Tax Obligation/Limited 81,665,130
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 3.7% (3.5% OF TOTAL INVESTMENTS)
2,500 Bay Area Toll Authority, California, Revenue Bonds, San Francisco 4/16 at 100.00 AA 2,410,325
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- 4,905,450
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 1,258,600
5.500%, 7/01/30 - FSA Insured
240 Palm Springs Financing Authority, California, Palm Springs 7/14 at 102.00 N/R 212,256
International Airport Revenue Bonds, Series 2006, 5.550%, 7/01/28
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
9,490 Total Transportation 8,786,631
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 31.8% (30.0% OF TOTAL INVESTMENTS) (4)
2,400 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 N/R (4) 2,573,592
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 Revenue 5/12 at 101.00 Aaa 4,874,670
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) 3,323,456
Pooled College and University Projects, Series 2000C,
6.750%, 6/01/30 (ETM)
7,500 California Health Facilities Financing Authority, Revenue Bonds, 12/09 at 101.00 N/R (4) 7,995,975
Cedars-Sinai Medical Center, Series 1999A, 6.125%, 12/01/30
(Pre-refunded 12/01/09)
2,845 California, General Obligation Bonds, Series 2004, 4/14 at 100.00 A+ (4) 3,098,717
5.250%, 4/01/34 (Pre-refunded 4/01/14)
6,260 California, Various Purpose General Obligation Bonds, 3/10 at 101.00 AAA 6,691,126
Series 2000, 5.750%, 3/01/27 (Pre-refunded 3/01/10) -
MBIA Insured
5,000 Central California Joint Powers Health Finance Authority, 2/10 at 101.00 AAA 5,349,350
Certificates of Participation, Community Hospitals of Central
California Obligated Group, Series 2000, 6.000%, 2/01/30
(Pre-refunded 2/01/10)
2,065 Contra Costa County, California, GNMA Mortgage-Backed No Opt. Call AAA 2,671,904
Securities Program Home Mortgage Revenue Bonds, Series 1988,
8.250%, 6/01/21 (Alternative Minimum Tax) (ETM)
21
NCA
Nuveen California Municipal Value Fund, Inc. (continued)
Portfolio of INVESTMENTS February 29, 2008 (Unaudited)
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 $ 4,099,250
3,000 5.625%, 6/01/38 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 3,253,950
2,500 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 2,738,375
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.250%, 6/01/33 (Pre-refunded 6/01/13)
1,935 Los Angeles Community Redevelopment Agency, California, 7/08 at 100.00 BBB (4) 1,940,128
Tax Allocation Refunding Bonds, Central Business District
Redevelopment Project, Series 1987G, 6.750%, 7/01/10 (ETM)
5,000 Orange County Sanitation District, California, Certificates 8/13 at 100.00 AA (4) 5,450,000
of Participation, Series 2003, 5.250%, 2/01/27 (Pre-refunded
8/01/13) - FGIC Insured
8,565 Palmdale, California, GNMA Mortgage-Backed Securities Program No Opt. Call AAA 5,735,895
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 3,561,393
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 9,524,002
Securities Program Single Family Home Mortgage Revenue
Bonds, Series 1988A, 0.000%, 9/01/21 (Alternative
Minimum Tax) (ETM)
3,000 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/10 at 101.00 BBB+ (4) 3,294,060
Loan Note, Series 1999A, 6.500%, 10/01/24
(Pre-refunded 10/01/10)
------------------------------------------------------------------------------------------------------------------------------------
85,200 Total U.S. Guaranteed 76,175,843
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 3.3% (3.1% OF TOTAL INVESTMENTS)
2,445 California Statewide Community Development Authority, 6/08 at 100.50 N/R 2,219,742
Certificates of Participation Refunding, Rio Bravo Fresno
Project, Series 1999A, 6.500%, 12/01/18 (6)
1,800 Long Beach Bond Finance Authority, California, Natural Gas No Opt. Call A1 1,616,292
Purchase Revenue Bonds, Series 2007A, 5.500%, 11/15/37
605 Merced Irrigation District, California, Electric System Revenue 9/15 at 100.00 A- 564,701
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 3,568,409
Environmental Control Facilities Financing Authority, Co-Generation
Facility Revenue Bonds, Series 2000A, 6.625%, 6/01/26
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
8,320 Total Utilities 7,969,144
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 5.8% (5.5% OF TOTAL INVESTMENTS)
1,500 California Department of Water Resources, Water System 6/15 at 100.00 AAA 1,515,345
Revenue Bonds, Central Valley Project, Series 2005AD,
5.000%, 12/01/22 - FSA Insured
1,500 Castaic Lake Water Agency, California, Certificates of 8/16 at 100.00 AAA 1,405,005
Participation, Series 2006C, 5.000%, 8/01/36 - MBIA Insured
410 Healdsburg Public Financing Authority, California, Wastewater 4/16 at 100.00 AAA 387,540
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 501,425
California, Senior Revenue Bonds, Capital Projects,
Series 2003A, 5.000%, 10/01/23 - FSA Insured
5,000 Los Angeles Department of Water and Power, California, 7/17 at 100.00 AAA 4,670,650
Waterworks Revenue Bonds, Series 2007A-2, 5.000%, 7/01/44 -
AMBAC Insured
625 Sacramento County Sanitation District Financing Authority, 6/16 at 100.00 AA 599,781
California, Revenue Bonds, Series 2006, 5.000%, 12/01/31 -
FGIC Insured
22
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 $ 1,537,593
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+ 3,269,315
Participation, Water Systems Project, Series 2003,
5.625%, 7/01/43
------------------------------------------------------------------------------------------------------------------------------------
14,615 Total Water and Sewer 13,886,654
------------------------------------------------------------------------------------------------------------------------------------
$ 273,595 Total Investments (cost $254,902,736) - 106.0% 253,618,827
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (8.5)% (20,421,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.5% 6,022,878
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 239,220,705
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices
of the earliest optional call or redemption. There may be
other call provisions at varying prices at later dates.
Certain mortgage-backed securities may be subject to
periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group
("Standard & Poor's") or Moody's Investor Service, Inc.
("Moody's") rating. Ratings below BBB by Standard & Poor's
or Baa by Moody's are considered to be below investment
grade.
The Portfolio of Investments reflects the ratings on certain
bonds insured by AMBAC, FGIC, MBIA and XLCA as of February
29, 2008. Subsequent to February 29, 2008, at least one
rating agency reduced the rating for AMBAC-insured bonds to
AA and at least one rating agency further reduced the
ratings for FGIC-insured and XLCA-insured bonds. As of
February 29, 2008, one or more rating agencies have placed
each of these insurers on "negative credit watch", which may
presage one or more rating reductions for such insurer or
insurers in the future. If one or more insurers' ratings are
reduced by these rating agencies, it would likely reduce the
effective rating of many of the bonds insured by that
insurer or insurers.
(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) Investment valued at fair value using methods determined in
good faith by, or at the discretion of, the Board of
Directors.
(6) This debt has been restructured to accommodate capital
maintenance at the facility. Major highlights of the debt
restructuring include the following: (1) the principal
balance outstanding on and after December 1, 2007, shall
accrue interest at a rate of 6.500% per annum commencing
December 1, 2007; (2) the interest shall accrue but not be
payable on June 1, 2008 or December 1, 2008, but shall
instead be deferred and paid by the end of calendar year
2011; (3) no principal component shall be pre-payable from
the Minimum Sinking Fund Account during calendar years 2008
and 2009 but such pre-payments shall recommence beginning in
calendar year 2010 according to a revised schedule.
Management believes that the restructuring is in the best
interest of the Fund shareholders and that it is
more-likely-than-not that the borrower will fulfill its
obligation. Consequently the Fund continues to accrue
interest on this obligation.
N/R Not rated.
(ETM) Escrowed to maturity.
(UB) Underlying bond of an inverse floating rate trust reflected
as a financing transaction pursuant to the provisions of
SFAS No. 140.
See accompanying notes to financial statements.
23
NCP
Nuveen California Performance Plus Municipal Fund, Inc.
Portfolio of INVESTMENTS
February 29, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 6.0% (3.7% OF TOTAL INVESTMENTS)
$ 705 California County Tobacco Securitization Agency, Tobacco 6/15 at 100.00 BBB $ 647,472
Settlement Asset-Backed Bonds, Sonoma County Tobacco
Securitization Corporation, Series 2005, 4.250%, 6/01/21
3,000 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 2,681,610
Enhanced Tobacco Settlement Asset-Backed Bonds,
Series 2007A-1, 5.750%, 6/01/47
12,135 Golden State Tobacco Securitization Corporation, California, 6/22 at 100.00 BBB 7,247,629
Enhanced Tobacco Settlement Asset-Backed Bonds,
Series 2007A-2, 0.000%, 6/01/37
------------------------------------------------------------------------------------------------------------------------------------
15,840 Total Consumer Staples 10,576,711
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 8.7% (5.5% OF TOTAL INVESTMENTS)
160 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 A3 145,750
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 105,899
150 5.000%, 11/01/25 11/15 at 100.00 A2 138,863
4,730 California Infrastructure Economic Development Bank, Revenue 10/11 at 101.00 A- 4,798,585
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 4,785,625
Series 2002A, 5.000%, 11/01/19 - AMBAC Insured
4,000 San Diego County, California, Certificates of Participation, 9/15 at 102.00 Baa3 3,340,760
Burnham Institute, Series 2006, 5.000%, 9/01/34
2,000 University of California, Revenue Bonds, Multi-Purpose 5/13 at 100.00 AAA 2,098,240
Projects, Series 2003A, 5.125%, 5/15/17 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
15,880 Total Education and Civic Organizations 15,413,722
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 10.6% (6.6% OF TOTAL INVESTMENTS)
1,455 California Health Facilities Financing Authority, Revenue Bonds, 11/15 at 100.00 A2 1,342,194
Cedars-Sinai Medical Center, Series 2005, 5.000%, 11/15/34
375 California Health Facilities Financing Authority, Revenue Bonds, 4/16 at 100.00 A+ 331,864
Kaiser Permanante System, Series 2006, 5.000%, 4/01/37
6,385 California Health Facilities Financing Authority, Revenue Bonds, 11/16 at 100.00 AA- 5,869,092
Sutter Health, Series 2007A, 5.250%, 11/15/46 (UB)
1,650 California Municipal Financing Authority, Certificates of 2/17 at 100.00 Baa2 1,346,961
Participation, Community Hospitals of Central California,
Series 2007, 5.250%, 2/01/46
1,000 California Statewide Community Development Authority, 7/15 at 100.00 BBB+ 885,860
Revenue Bonds, Daughters of Charity Health System,
Series 2005A, 5.250%, 7/01/30
5,220 California Statewide Community Development Authority, 3/16 at 100.00 A+ 4,629,931
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+ 1,639,556
Revenue Bonds, Kaiser Permanente System, Series 2001C,
5.250%, 8/01/31
24
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 1,355 California Statewide Community Development Authority, No Opt. Call AAA $ 1,371,788
Revenue Bonds, Sherman Oaks Health System, Series 1998A,
5.000%, 8/01/22 - AMBAC Insured
1,600 The Regents of the University of California, Medical Center 5/15 at 101.00 AAA 1,376,880
Pooled Revenue Bonds, Series 2007A, 4.500%, 5/15/37 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
20,795 Total Health Care 18,794,126
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 3.0% (1.9% OF TOTAL INVESTMENTS)
1,500 California Statewide Community Development Authority, Student 8/12 at 100.00 N/R 1,342,125
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 Housing 3/08 at 101.00 AAA 3,924,044
Revenue Bonds, Ridgecroft Apartments, Series 1997E,
6.250%, 9/20/39 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
5,415 Total Housing/Multifamily 5,266,169
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.3% (0.2% OF TOTAL INVESTMENTS)
440 California Housing Finance Agency, Home Mortgage Revenue 2/16 at 100.00 Aa2 456,311
Bonds, Series 2006H, 5.750%, 8/01/30 - FGIC Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.6% (0.4% OF TOTAL INVESTMENTS)
1,250 California Pollution Control Financing Authority, Solid Waste 1/16 at 102.00 BBB 1,118,850
Disposal Revenue Bonds, Waste Management Inc.,
Series 2002A, 5.000%, 1/01/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.3% (1.5% OF TOTAL INVESTMENTS)
4,500 California Statewide Communities Development Authority, 12/17 at 100.00 Baa1 4,119,300
Revenue Bonds, Inland Regional Center Project, Series 2007,
5.250%, 12/01/27
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 20.5% (12.8% OF TOTAL INVESTMENTS)
5 California State, General Obligation Bonds, Series 2004, 4/14 at 100.00 A+ 4,863
5.250%, 4/01/34
2,000 California, General Obligation Bonds, Series 2003, 8/13 at 100.00 AAA 2,034,800
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+ 480,655
3,950 5.200%, 4/01/26 4/14 at 100.00 A+ 3,850,421
3,550 Centinela Valley Union High School District, Los Angeles County, No Opt. Call AAA 3,451,452
California, General Obligation Bonds, Series 2002A,
5.250%, 2/01/26 - MBIA Insured (5)
1,400 Los Rios Community College District, Sacramento, El Dorado 8/14 at 102.00 AAA 1,400,896
and Yolo Counties, California, General Obligation Bonds,
Series 2006C, 5.000%, 8/01/24 - FSA Insured
3,200 Murrieta Valley Unified School District, Riverside County, 9/17 at 100.00 AAA 2,854,208
California, General Obligation Bonds, Series 2007,
4.500%, 9/01/30 - FSA Insured
4,765 North Orange County Community College District, California, No Opt. Call AA 1,477,674
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 2,653,769
Obligation Refunding Bonds, Series 2001A, 5.750%, 8/01/30 -
MBIA Insured (5)
6,000 Puerto Rico, General Obligation and Public Improvement Bonds, No Opt. Call AAA 6,486,960
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 15,129
20 5.250%, 8/01/26 - MBIA Insured 8/14 at 100.00 AAA 20,107
325 Roseville Joint Union High School District, Placer County, 8/15 at 100.00 AA- 317,486
California, General Obligation Bonds, Series 2006B,
5.000%, 8/01/27 - FGIC Insured
25
NCP
Nuveen California Performance Plus Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS February 29, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 4,000 San Diego Unified School District, San Diego County, California, 7/13 at 101.00 AAA $ 4,361,040
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 Aa2 3,180,960
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 2,352,680
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 1,427,213
California, General Obligation Bonds, Series 2005,
5.000%, 8/01/24 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
38,945 Total Tax Obligation/General 36,370,313
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 34.6% (21.6% OF TOTAL INVESTMENTS)
5,045 California State Public Works Board, Lease Revenue Bonds, 3/12 at 100.00 AAA 5,082,989
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 1,627,826
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 3,142,621
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+ 2,311,686
5.000%, 7/01/15
400 Capistrano Unified School District, Orange County, California, 9/15 at 100.00 A 373,548
Special Tax Bonds, Community Facilities District, Series 2005,
5.000%, 9/01/24 - FGIC Insured
1,210 Chino Redevelopment Agency, California, Merged Chino 9/16 at 101.00 AAA 1,114,325
Redevelopment Project Area Tax Allocation Bonds, Series 2006,
5.000%, 9/01/38 - AMBAC Insured
2,000 Coachella Valley Unified School District, Riverside County, 9/16 at 100.00 Aaa 1,851,580
California, Certificates of Participation, Series 2007,
5.000%, 9/01/31 - AMBAC Insured
2,500 Corona Public Financing Authority, California, Superior Lien 9/09 at 102.00 AAA 2,527,600
Revenue Bonds, Series 1999A, 5.000%, 9/01/20 - FSA Insured
1,660 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 AAA 1,208,629
Enhanced Asset Backed Settlement Revenue Bonds,
Series 2005A, Trust Series 1500, 7.910%, 6/01/45 -
AMBAC Insured (IF)
1,045 Hawthorne Community Redevelopment Agency, California, 9/16 at 100.00 A- 994,641
Project Area 2 Tax Allocation Bonds, Series 2006,
5.250%, 9/01/36 - XLCA Insured
1,750 Hesperia Community Redevelopment Agency, California, 9/15 at 100.00 A3 1,623,300
Tax Allocation Bonds, Series 2005A, 5.000%, 9/01/25 -
XLCA Insured
Irvine, California, Unified School District, Community Facilities
District Special Tax Bonds, Series 2006A:
195 5.000%, 9/01/26 9/16 at 100.00 N/R 171,107
450 5.125%, 9/01/36 9/16 at 100.00 N/R 382,748
730 Los Angeles Community Redevelopment Agency, California, 9/15 at 100.00 Aaa 663,212
Lease Revenue Bonds, Manchester Social Services Project,
Series 2005, 5.000%, 9/01/37 - AMBAC Insured
6,665 Los Angeles County Public Works Financing Authority, California, No Opt. Call N/R 6,665,000
Lease Revenue Bonds, Series 2006B, Floaters 1940,
6.970%, 9/01/31
3,335 Los Angeles County Public Works Financing Authority, California, No Opt. Call Baa3 2,592,696
Lease Revenue Bonds, Series 2006B, Residuals 1940,
0.7334%, 9/01/31 - FGIC Insured (IF)
4,000 Los Angeles, California, Municipal Improvement Corporation, 1/17 at 100.00 AA- 3,564,560
Lease Revenue Bonds, Police Headquarters, Series 2006A,
4.750%, 1/01/31 - FGIC Insured
1,395 Moreno Valley Unified School District, Riverside County, 3/14 at 100.00 AAA 1,401,459
California, Certificates of Participation, Series 2005,
5.000%, 3/01/22 - FSA Insured
3,500 Murrieta Redevelopment Agency, California, Tax Allocation Bonds, 8/17 at 100.00 AAA 3,275,125
Series 2007A, 5.000%, 8/01/37 - MBIA Insured
26
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,000 Paramount Redevelopment Agency, California, Tax Allocation 8/13 at 100.00 AAA $ 983,080
Bonds, Redevelopment Project Area 1, Series 2003,
5.000%, 8/01/23 - MBIA Insured
350 Rialto Redevelopment Agency, California, Tax Allocation Bonds, 9/15 at 100.00 A- 324,401
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 A- 1,364,535
Tax Allocation Bonds, Multiple Projects, Series 2005A,
5.000%, 10/01/37 - XLCA Insured
1,000 Rohnert Park Community Development Commission, California, 8/17 at 100.00 A 935,750
Redevelopment Project Tax Allocation Bonds, Series 2007R,
5.000%, 8/01/37 - FGIC Insured
435 Roseville, California, Certificates of Participation, Public 8/13 at 100.00 AAA 419,009
Facilities, Series 2003A, 5.000%, 8/01/25 - AMBAC Insured
1,000 Sacramento City Financing Authority, California, Lease Revenue No Opt. Call AAA 1,071,440
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 4,694,950
Bonds, Project Areas 2 and 3, Series 2005C, 5.000%, 8/01/35 -
AMBAC Insured
750 San Mateo Union High School District, San Mateo County, 12/17 at 100.00 AAA 691,493
California, Certificates of Participation, Phase 1, Series 2007A,
5.000%, 12/15/30 - AMBAC Insured
Santa Clara Redevelopment Agency, California, Tax Allocation Bonds,
Bayshore North Project, Series 2003:
2,695 5.000%, 6/01/20 - MBIA Insured 6/13 at 100.00 AAA 2,710,254
1,500 5.000%, 6/01/21 - MBIA Insured 6/13 at 100.00 AAA 1,503,660
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 1,985,080
4,015 5.000%, 9/01/24 - FSA Insured 9/12 at 102.00 AAA 3,997,133
------------------------------------------------------------------------------------------------------------------------------------
63,905 Total Tax Obligation/Limited 61,255,437
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 26.5% (16.5% OF TOTAL INVESTMENTS)
1,430 Bay Area Toll Authority, California, Revenue Bonds, San Francisco 4/16 at 100.00 AA 1,378,706
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- 5,655,845
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 2,892,289
11,885 5.750%, 5/15/15 (Alternative Minimum Tax) 5/10 at 101.00 AA 12,545,568
8,550 Port of Oakland, California, Revenue Bonds, Series 2000K, 5/10 at 100.00 A+ 8,413,970
5.750%, 11/01/29 - FGIC Insured (Alternative Minimum Tax)
14,000 San Francisco Airports Commission, California, Revenue Bonds, 5/10 at 101.00 AAA 14,019,456
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 A1 1,966,460
Refunding Bonds, San Francisco International Airport,
Second Series 2001, Issue 27B, 5.000%, 5/01/23 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
47,105 Total Transportation 46,872,294
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 18.6% (11.6% OF TOTAL INVESTMENTS) (4)
2,000 California County Tobacco Securitization Agency, Tobacco 6/10 at 100.00 N/R (4) 2,039,900
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 3,249,780
Revenue Bonds, Series 2002A, 5.125%, 5/01/18
(Pre-refunded 5/01/12)
27
NCP
Nuveen California Performance Plus Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS February 29, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 5,360 California Infrastructure Economic Development Bank, First Lien No Opt. Call AAA $ 5,466,342
Revenue Bonds, San Francisco Bay Area Toll Bridge,
Series 2003A, 5.000%, 7/01/23 - FSA Insured (ETM)
4,000 Contra Costa County, California, GNMA Mortgage-Backed Securities No Opt. Call AAA 5,175,600
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 4,045,313
Enhanced Tobacco Settlement Asset-Backed Bonds,
Series 2003B, 5.500%, 6/01/33 (Pre-refunded 6/01/13)
3,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 3,413,220
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.750%, 6/01/39 (Pre-refunded 6/01/13)
5,000 Los Angeles Unified School District, California, General 7/10 at 100.00 AA- (4) 5,281,750
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 4,316,840
Revenue Bonds, Series 2002D, 5.375%, 7/01/36
(Pre-refunded 7/01/12)
------------------------------------------------------------------------------------------------------------------------------------
30,110 Total U.S. Guaranteed 32,988,745
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 11.4% (7.2% OF TOTAL INVESTMENTS)
4,210 California Statewide Community Development Authority, Certificates 6/08 at 100.50 N/R 3,822,133
of Participation Refunding, Rio Bravo Fresno Project,
Series 1999A, 6.300%, 12/01/18 (6)
2,140 Long Beach Bond Finance Authority, California, Natural Gas No Opt. Call A1 1,921,592
Purchase Revenue Bonds, Series 2007A, 5.500%, 11/15/37
725 Los Angeles Department of Water and Power, California, 7/13 at 100.00 AAA 730,184
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 484,565
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 A- 667,374
Bonds, Series 2005, 5.125%, 9/01/31 - XLCA Insured
10,450 Orange County Public Financing Authority, California, Waste No Opt. Call Aaa 11,144,298
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 Revenue No Opt. Call A1 1,003,600
Bonds, Series 2004T, 5.250%, 5/15/23 - FGIC Insured
500 Sacramento Municipal Utility District, California, Electric Revenue 8/12 at 100.00 AAA 508,710
Refunding Bonds, Series 2002Q, 5.250%, 8/15/22 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
20,240 Total Utilities 20,282,456
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 16.8% (10.5% OF TOTAL INVESTMENTS)
1,000 California Statewide Community Development Authority, Water 10/13 at 100.00 AAA 1,013,960
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 Bonds, 10/16 at 100.00 AAA 2,319,150
Series 2006A, 4.750%, 10/01/31 - FSA Insured
490 Healdsburg Public Financing Authority, California, Wastewater 4/16 at 100.00 AAA 463,158
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 4,914,722
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 2,507,000
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 6,354,155
California, Revenue Bonds, Series 2000A, 5.250%, 12/01/12
28
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 750 Sacramento County Sanitation District Financing Authority, 6/16 at 100.00 AA $ 710,573
California, Revenue Bonds, Series 2006, 5.000%, 12/01/36 -
FGIC Insured
4,000 Sacramento County Sanitation District Financing Authority, No Opt. Call AAA 4,296,520
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 4,629,612
Revenue Certificates of Participation, Series 1997A,
5.550%, 8/01/27 - AMBAC Insured
1,700 South Gate Utility Authority, California, Subordinate Revenue 10/11 at 102.00 A 1,672,273
Bonds, Water and Sewer System Projects, Series 2001,
5.000%, 10/01/22 - FGIC Insured
945 Woodbridge Irrigation District, California, Certificates of 7/13 at 100.00 BBB+ 882,715
Participation, Water Systems Project, Series 2003,
5.625%, 7/01/43
------------------------------------------------------------------------------------------------------------------------------------
29,225 Total Water and Sewer 29,763,838
------------------------------------------------------------------------------------------------------------------------------------
$ 293,650 Total Investments (cost $289,348,704) - 159.9% 283,278,272
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (2.4)% (4,258,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.3% 4,168,618
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (59.8)% (7) (106,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 177,188,890
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices
of the earliest optional call or redemption. There may be
other call provisions at varying prices at later dates.
Certain mortgage-backed securities may be subject to
periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group
("Standard & Poor's") or Moody's Investor Service, Inc.
("Moody's") rating. Ratings below BBB by Standard & Poor's
or Baa by Moody's are considered to be below investment
grade.
The Portfolio of Investments reflects the ratings on certain
bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of
February 29, 2008. Subsequent to February 29, 2008, at least
one rating agency reduced the rating for AMBAC-insured bonds
to AA and at least one rating agency further reduced the
ratings for CIFG-insured, FGIC-insured and XLCA-insured
bonds. As of February 29, 2008, one or more rating agencies
have placed each of these insurers on "negative credit
watch", which may presage one or more rating reductions for
such insurer or insurers in the future. If one or more
insurers' ratings are reduced by these rating agencies, it
would likely reduce the effective rating of many of the
bonds insured by that insurer or insurers.
(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 formal 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 is formally determined that the
interest on the bonds should be treated as taxable.
(6) This debt has been restructured to accommodate capital
maintenance at the facility. Major highlights of the debt
restructuring include the following: (1) the principal
balance outstanding on and after December 1, 2007, shall
accrue interest at a rate of 6.500% per annum commencing
December 1, 2007; (2) the interest shall accrue but not be
payable on June 1, 2008 or December 1, 2008, but shall
instead be deferred and paid by the end of calendar year
2011; (3) no principal component shall be pre-payable from
the Minimum Sinking Fund Account during calendar years 2008
and 2009 but such pre-payments shall recommence beginning in
calendar year 2010 according to a revised schedule.
Management believes that the restructuring is in the best
interest of the Fund shareholders and that it is
more-likely-than-not that the borrower will fulfill its
obligation. Consequently the Fund continues to accrue
interest on this obligation.
(7) Preferred Shares, at Liquidation Value as a percentage of
total investments is (37.4)%.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected
as a financing transaction pursuant to the provisions of
SFAS No. 140.
See accompanying notes to financial statements.
29
NCO
Nuveen California Municipal Market Opportunity Fund, Inc.
Portfolio of INVESTMENTS
February 29, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 6.3% (3.9% OF TOTAL INVESTMENTS)
$ 450 California County Tobacco Securitization Agency, Tobacco 6/15 at 100.00 BBB $ 413,280
Settlement Asset-Backed Bonds, Sonoma County Tobacco
Securitization Corporation, Series 2005, 4.250%, 6/01/21
2,000 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 1,787,740
Enhanced Tobacco Settlement Asset-Backed Bonds,
Series 2007A-1, 5.750%, 6/01/47
8,090 Golden State Tobacco Securitization Corporation, California, 6/22 at 100.00 BBB 4,831,753
Enhanced Tobacco Settlement Asset-Backed Bonds,
Series 2007A-2, 0.000%, 6/01/37
------------------------------------------------------------------------------------------------------------------------------------
10,540 Total Consumer Staples 7,032,773
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 2.6% (1.6% OF TOTAL INVESTMENTS)
100 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 A3 91,094
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 67,390
95 5.000%, 11/01/25 11/15 at 100.00 A2 87,946
1,000 California Infrastructure Economic Development Bond Bank, 7/15 at 100.00 Aa3 975,940
Revenue Bonds, Scripps Research Institute, Series 2005A,
5.000%, 7/01/24
2,000 San Diego County, California, Certificates of Participation, 9/15 at 102.00 Baa3 1,670,380
Burnham Institute, Series 2006, 5.000%, 9/01/34
------------------------------------------------------------------------------------------------------------------------------------
3,265 Total Education and Civic Organizations 2,892,750
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 17.6% (10.9% OF TOTAL INVESTMENTS)
930 California Health Facilities Financing Authority, Revenue Bonds, 11/15 at 100.00 A2 857,897
Cedars-Sinai Medical Center, Series 2005, 5.000%, 11/15/34
240 California Health Facilities Financing Authority, Revenue Bonds, 4/16 at 100.00 A+ 212,393
Kaiser Permanante System, Series 2006, 5.000%, 4/01/37
5,305 California Health Facilities Financing Authority, Revenue Bonds, 11/16 at 100.00 AA- 4,876,356
Sutter Health, Series 2007A, 5.250%, 11/15/46 (UB)
3,200 California Infrastructure Economic Development Bank, Revenue 8/11 at 102.00 A+ 3,140,224
Bonds, Kaiser Hospital Assistance LLC, Series 2001A,
5.550%, 8/01/31
1,060 California Municipal Financing Authority, Certificates of 2/17 at 100.00 Baa2 865,320
Participation, Community Hospitals of Central California,
Series 2007, 5.250%, 2/01/46
1,000 California Statewide Community Development Authority, 10/17 at 100.00 A+ 889,350
Insured Health Facility Revenue Bonds, Henry Mayo Newhall
Memorial Hospital, Series 2007A, 5.000%, 10/01/37
3,340 California Statewide Community Development Authority, Revenue 3/16 at 100.00 A+ 2,962,446
Bonds, Kaiser Permanante System, Series 2006, 5.000%, 3/01/41
1,135 California Statewide Community Development Authority, 8/16 at 100.00 A+ 1,060,340
Revenue Bonds, Kaiser Permanente System, Series 2001C,
5.250%, 8/01/31
30
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 675 California Statewide Community Development Authority, No Opt. Call AAA $ 683,363
Revenue Bonds, Sherman Oaks Health System, Series 1998A,
5.000%, 8/01/22 - AMBAC Insured
3,690 Rancho Mirage Joint Powers Financing Authority, California, 7/17 at 100.00 A3 3,263,399
Revenue Bonds, Eisenhower Medical Center, Series 2007A,
5.000%, 7/01/38
1,000 The Regents of the University of California, Medical Center 5/15 at 101.00 AAA 860,550
Pooled Revenue Bonds, Series 2007A, 4.500%, 5/15/37 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
21,575 Total Health Care 19,671,638
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.3% (0.1% OF TOTAL INVESTMENTS)
280 California Housing Finance Agency, Home Mortgage Revenue 2/16 at 100.00 Aa2 290,380
Bonds, Series 2006H, 5.750%, 8/01/30 - FGIC Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.6% (0.3% OF TOTAL INVESTMENTS)
750 California Pollution Control Financing Authority, Solid Waste 1/16 at 102.00 BBB 671,310
Disposal Revenue Bonds, Waste Management Inc.,
Series 2002A, 5.000%, 1/01/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.4% (1.5% OF TOTAL INVESTMENTS)
2,900 California Statewide Communities Development Authority, 12/17 at 100.00 Baa1 2,654,660
Revenue Bonds, Inland Regional Center Project, Series 2007,
5.250%, 12/01/27
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 21.0% (13.0% OF TOTAL INVESTMENTS)
4,125 Alameda Unified School District, Alameda County, California, No Opt. Call AAA 1,559,951
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 1,017,720
1,000 5.250%, 2/01/22 - CIFG Insured 8/13 at 100.00 AAA 1,017,400
1,350 Coachella Valley Unified School District, Riverside County, 8/15 at 100.00 A 1,258,632
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 Aa3 3,159,198
California, General Obligation Bonds, Series 2005B,
5.000%, 8/01/27 - FGIC Insured
2,150 Los Rios Community College District, Sacramento, 8/14 at 102.00 AAA 2,151,376
El Dorado 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 A+ 1,271,451
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 A 2,463,950
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 1,110,930
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 25,311
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 AA- 205,145
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 5,231,150
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 AA 1,561,723
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 AA- 1,501,706
California, General Obligation Bonds, Series 2004,
0.000%, 8/01/25 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
34,835 Total Tax Obligation/General 23,535,643
------------------------------------------------------------------------------------------------------------------------------------
31
NCO
Nuveen California Municipal Market Opportunity Fund, Inc. (continued)
Portfolio of INVESTMENTS February 29, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 28.0% (17.3% OF TOTAL INVESTMENTS)
$ 2,000 California State Public Works Board, Lease Revenue Bonds, 6/14 at 100.00 A $ 2,088,120
Department of Mental Health, Coalinga State Hospital,
Series 2004A, 5.500%, 6/01/19
1,420 California, Economic Recovery Revenue Bonds, Series 2004A, 7/14 at 100.00 AA+ 1,495,487
5.000%, 7/01/15
260 Capistrano Unified School District, Orange County, California, 9/15 at 100.00 A 242,806
Special Tax Bonds, Community Facilities District, Series 2005,
5.000%, 9/01/24 - FGIC Insured
770 Chino Redevelopment Agency, California, Merged Chino 9/16 at 101.00 AAA 709,116
Redevelopment Project Area Tax Allocation Bonds, Series 2006,
5.000%, 9/01/38 - AMBAC Insured
1,035 Hawthorne Community Redevelopment Agency, California, 9/16 at 100.00 A- 985,123
Project Area 2 Tax Allocation Bonds, Series 2006,
5.250%, 9/01/36 - XLCA Insured
Irvine, California, Unified School District, Community Facilities
District Special Tax Bonds, Series 2006A:
125 5.000%, 9/01/26 9/16 at 100.00 N/R 109,684
290 5.125%, 9/01/36 9/16 at 100.00 N/R 246,660
470 Los Angeles Community Redevelopment Agency, California, 9/15 at 100.00 Aaa 427,000
Lease Revenue Bonds, Manchester Social Services Project,
Series 2005, 5.000%, 9/01/37 - AMBAC Insured
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 1,347,253
1,500 5.250%, 9/01/26 - AMBAC Insured 9/14 at 100.00 AAA 1,461,885
10,900 Ontario Redevelopment Financing Authority, San Bernardino No Opt. Call AAA 13,223,770
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 3/08 at 101.00 N/R 1,003,240
District 5, Freeway Interchange Project, Series 1997,
6.375%, 9/01/17
1,065 Panama-Buena Vista Union School District, California, 9/16 at 100.00 AAA 1,032,624
Certificates of Participation, School Construction Project,
Series 2006, 5.000%, 9/01/22 - MBIA Insured
225 Rialto Redevelopment Agency, California, Tax Allocation Bonds, 9/15 at 100.00 A- 208,544
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 269,707
Facilities, Series 2003A, 5.000%, 8/01/25 - AMBAC Insured
2,500 Sacramento City Financing Authority, California, Lease Revenue No Opt. Call AAA 2,607,425
Refunding Bonds, Series 1993A, 5.400%, 11/01/20 -
AMBAC Insured
2,255 San Bernardino County, California, Certificates of Participation, 8/08 at 100.00 AAA 2,257,526
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 1,208,616
Refunding Bonds, Convention Center Project, Series 2001F,
5.000%, 9/01/20 - MBIA Insured
485 San Mateo Union High School District, San Mateo County, 12/17 at 100.00 AAA 447,165
California, Certificates of Participation, Phase 1, Series 2007A,
5.000%, 12/15/30 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
29,155 Total Tax Obligation/Limited 31,371,751
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 24.2% (14.9% OF TOTAL INVESTMENTS)
4,000 Foothill/Eastern Transportation Corridor Agency, California, 1/14 at 101.00 BBB- 3,480,520
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 8,972,430
5.750%, 5/15/14 (Alternative Minimum Tax)
5,250 Port of Oakland, California, Revenue Bonds, Series 2000K, 5/10 at 100.00 A+ 5,166,473
5.750%, 11/01/29 - FGIC Insured (Alternative Minimum Tax)
32
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION (continued)
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 $ 2,518,496
3,100 5.750%, 5/01/30 - FSA Insured (Alternative Minimum Tax) 5/10 at 101.00 AAA 3,112,245
1,250 San Francisco Airports Commission, California, Revenue 5/10 at 101.00 A1 1,250,375
Bonds, 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 7/08 at 102.00 AAA 2,517,628
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 27,018,167
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 29.2% (18.0% OF TOTAL INVESTMENTS) (4)
1,260 California County Tobacco Securitization Agency, Tobacco 6/10 at 100.00 N/R (4) 1,285,137
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 Revenue 5/12 at 101.00 Aaa 3,249,780
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 N/R (4) 426,452
Cedars-Sinai Medical Center, Series 1999A, 6.125%, 12/01/30
(Pre-refunded 12/01/09)
California, General Obligation Bonds, Series 2004:
1,000 5.125%, 2/01/27 (Pre-refunded 2/01/14) 2/14 at 100.00 A+ (4) 1,080,770
2,100 5.250%, 4/01/34 (Pre-refunded 4/01/14) 4/14 at 100.00 A+ (4) 2,287,278
2,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 2,190,700
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.250%, 6/01/33 (Pre-refunded 6/01/13)
5,000 Los Angeles Unified School District, California, General 7/10 at 100.00 AA- (4) 5,281,750
Obligation Bonds, Series 2000D, 5.375%, 7/01/25
(Pre-refunded 7/01/10) - FGIC Insured
2,000 Monterey County, California, Certificates of Participation, 8/11 at 100.00 Aaa 2,122,300
Master Plan Financing, Series 2001, 5.000%, 8/01/21
(Pre-refunded 8/01/11) - MBIA Insured
875 Orange County Water District, California, Revenue Certificates 8/13 at 100.00 AAA 829,351
of Participation, Series 2003B, 5.000%, 8/15/34 -
MBIA Insured (ETM)
4,000 Pomona, California, GNMA/FHLMC Collateralized Single Family No Opt. Call AAA 5,016,360
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 2,048,681
Obligation Bonds, Series 2004A, 5.250%, 8/01/24
(Pre-refunded 8/01/14) - MBIA Insured
5,000 Union City Community Redevelopment Agency, California, 10/09 at 101.00 AAA 5,266,150
Tax Allocation Revenue Bonds, Redevelopment Project,
Series 1999, 5.750%, 10/01/32 (Pre-refunded 10/01/09) -
AMBAC Insured
1,530 University of California, Certificates of Participation, San Diego 1/10 at 101.00 Aa1 (4) 1,614,747
and Sacramento Campus Projects, Series 2002A,
5.250%, 1/01/20 (Pre-refunded 1/01/10)
------------------------------------------------------------------------------------------------------------------------------------
30,040 Total U.S. Guaranteed 32,699,456
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 5.1% (3.2% OF TOTAL INVESTMENTS)
1,500 California Pollution Control Financing Authority, Revenue 9/09 at 101.00 AAA 1,503,315
Refunding Bonds, Southern California Edison Company,
Series 1999A, 5.450%, 9/01/29 - MBIA Insured
2,815 California Statewide Community Development Authority, 6/08 at 100.50 N/R 2,555,654
Certificates of Participation Refunding, Rio Bravo Fresno
Project, Series 1999A, 6.300%, 12/01/18 (5)
1,365 Long Beach Bond Finance Authority, California, Natural Gas No Opt. Call A1 1,225,688
Purchase Revenue Bonds, Series 2007A, 5.500%, 11/15/37
455 Merced Irrigation District, California, Electric System Revenue 9/15 at 100.00 A- 424,692
Bonds, Series 2005, 5.125%, 9/01/31 - XLCA Insured
------------------------------------------------------------------------------------------------------------------------------------
6,135 Total Utilities 5,709,349
------------------------------------------------------------------------------------------------------------------------------------
33
NCO
Nuveen California Municipal Market Opportunity Fund, Inc. (continued)
Portfolio of INVESTMENTS February 29, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 24.7% (15.3% OF TOTAL INVESTMENTS)
$ 3,330 California Department of Water Resources, Water System 12/11 at 100.00 AA $ 3,572,357
Revenue Bonds, Central Valley Project, Series 2001W,
5.500%, 12/01/15
1,030 California Department of Water Resources, Water System Revenue No Opt. Call AA 1,134,906
Bonds, Central Valley Project, Series 2002X, 5.500%, 12/01/17 -
FGIC Insured
2,500 El Centro Financing Authority, California, Water Revenue Bonds, 10/16 at 100.00 AAA 2,319,150
Series 2006A, 4.750%, 10/01/31 - FSA Insured
750 Fortuna Public Finance Authority, California, Water Revenue 10/16 at 100.00 AAA 718,088
Bonds, Series 2006, 5.000%, 10/01/36 - FSA Insured
315 Healdsburg Public Financing Authority, California, Wastewater 4/16 at 100.00 AAA 297,744
Revenue Bonds, Series 2006, 5.000%, 4/01/36 - MBIA Insured
4,125 Orange County Water District, California, Revenue Certificates 8/13 at 100.00 AAA 3,780,645
of Participation, Series 2003B, 5.000%, 8/15/34 - MBIA Insured
3,500 Placerville Public Financing Authority, California, Wastewater 9/16 at 100.00 A- 3,202,710
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 AA 479,825
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 2,033,360
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 10,097,300
Revenue Certificates of Participation, Series 1997A,
5.550%, 8/01/27 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
28,050 Total Water and Sewer 27,636,085
------------------------------------------------------------------------------------------------------------------------------------
$ 194,605 Total Investments (cost $183,773,458) - 162.0% 181,183,962
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (3.2)% (3,536,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.0% 2,223,123
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (60.8)% (6) (68,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 111,871,085
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices
of the earliest optional call or redemption. There may be
other call provisions at varying prices at later dates.
Certain mortgage-backed securities may be subject to
periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group
("Standard & Poor's") or Moody's Investor Service, Inc.
("Moody's") rating. Ratings below BBB by Standard & Poor's
or Baa by Moody's are considered to be below investment
grade.
The Portfolio of Investments reflects the ratings on certain
bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of
February 29, 2008. Subsequent to February 29, 2008, at least
one rating agency reduced the rating for AMBAC-insured bonds
to AA and at least one rating agency further reduced the
ratings for CIFG-insured, FGIC-insured and XLCA-insured
bonds. As of February 29, 2008, one or more rating agencies
have placed each of these insurers on "negative credit
watch", which may presage one or more rating reductions for
such insurer or insurers in the future. If one or more
insurers' ratings are reduced by these rating agencies, it
would likely reduce the effective rating of many of the
bonds insured by that insurer or insurers.
(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) This debt has been restructured to accommodate capital
maintenance at the facility. Major highlights of the debt
restructuring include the following: (1) the principal
balance outstanding on and after December 1, 2007, shall
accrue interest at a rate of 6.500% per annum commencing
December 1, 2007; (2) the interest shall accrue but not be
payable on June 1, 2008 or December 1, 2008, but shall
instead be deferred and paid by the end of calendar year
2011; (3) no principal component shall be pre-payable from
the Minimum Sinking Fund Account during calendar years 2008
and 2009 but such pre-payments shall recommence beginning in
calendar year 2010 according to a revised schedule.
Management believes that the restructuring is in the best
interest of the Fund shareholders and that it is
more-likely-than-not that the borrower will fulfill its
obligation. Consequently the Fund continues to accrue
interest on this obligation.
(6) Preferred Shares, at Liquidation Value as a percentage of
total investments is (37.5)%.
N/R Not rated.
(ETM) Escrowed to maturity.
(UB) Underlying bond of an inverse floating rate trust reflected
as a financing transaction pursuant to the provisions of
SFAS No. 140.
See accompanying notes to financial statements.
34
NQC
Nuveen California Investment Quality Municipal Fund, Inc.
Portfolio of INVESTMENTS
February 29, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 6.6% (4.1% OF TOTAL INVESTMENTS)
California County Tobacco Securitization Agency, Tobacco Settlement
Asset-Backed Bonds, Sonoma County Tobacco Securitization
Corporation, Series 2005:
$ 740 4.250%, 6/01/21 6/15 at 100.00 BBB $ 679,616
3,500 5.250%, 6/01/45 6/15 at 100.00 BBB 2,888,655
2,000 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 1,787,740
Enhanced Tobacco Settlement Asset-Backed Bonds,
Series 2007A-1, 5.750%, 6/01/47
6,740 Golden State Tobacco Securitization Corporation, California, 6/22 at 100.00 BBB 4,025,465
Enhanced Tobacco Settlement Asset-Backed Bonds,
Series 2007A-2, 0.000%, 6/01/37
3,500 Tobacco Securitization Authority of Northern California, Tobacco 6/15 at 100.00 BBB 2,989,455
Settlement Asset-Backed Bonds, Series 2005A-1, 5.375%, 6/01/38
------------------------------------------------------------------------------------------------------------------------------------
16,480 Total Consumer Staples 12,370,931
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 14.3% (9.0% OF TOTAL INVESTMENTS)
575 California Educational Facilities Authority, Revenue Bonds, Chapman 4/08 at 101.00 AAA 580,566
University, Series 1996, 5.125%, 10/01/26 - CONNIE LEE Insured
3,000 California Educational Facilities Authority, Revenue Bonds, 12/16 at 100.00 Baa3 2,428,980
Dominican University, Series 2006, 5.000%, 12/01/36
2,000 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 Aaa 1,951,120
Occidental College, Series 2005A, 5.000%, 10/01/27 - MBIA Insured
170 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 A3 154,860
University of Redlands, Series 2005A, 5.000%, 10/01/35
930 California Educational Facilities Authority, Revenue Bonds, 11/10 at 100.00 Aaa 939,988
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:
120 5.000%, 11/01/21 11/15 at 100.00 A2 115,526
160 5.000%, 11/01/25 11/15 at 100.00 A2 148,120
6,000 California State Public Works Board, Lease Revenue Bonds, 4/08 at 102.00 A1 5,938,860
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 2,382,050
Refunding Bonds, Long Beach Aquarium of the South Pacific,
Series 2001, 5.250%, 11/01/30 - AMBAC Insured
4,000 University of California, General Revenue Bonds, Series 2006J, 5/15 at 101.00 AAA 3,484,320
4.500%, 5/15/35 - FSA Insured
University of California, Revenue Bonds, Multi-Purpose Projects,
Series 2003A:
4,270 5.125%, 5/15/16 - AMBAC Insured 5/13 at 100.00 AAA 4,509,931
3,000 5.125%, 5/15/17 - AMBAC Insured 5/13 at 100.00 AAA 3,147,360
1,060 5.000%, 5/15/24 - AMBAC Insured 5/13 at 100.00 AAA 1,043,729
------------------------------------------------------------------------------------------------------------------------------------
27,785 Total Education and Civic Organizations 26,825,410
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 11.5% (7.2% OF TOTAL INVESTMENTS)
3,000 California Health Facilities Financing Authority, Revenue Bonds, 7/14 at 100.00 A 2,933,370
Catholic Healthcare West, Series 2004G, 5.250%, 7/01/23
35
NQC
Nuveen California Investment Quality Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS February 29, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
California Health Facilities Financing Authority, Revenue Bonds,
Kaiser Permanante System, Series 2006:
$ 390 5.000%, 4/01/37 4/16 at 100.00 A+ $ 345,138
2,355 5.250%, 3/01/45 3/16 at 100.00 A+ 2,155,272
7,765 California Health Facilities Financing Authority, Revenue Bonds, 11/16 at 100.00 AA- 7,137,588
Sutter Health, Series 2007A, 5.250%, 11/15/46 (UB)
1,750 California Municipal Financing Authority, Certificates of 2/17 at 100.00 Baa2 1,428,595
Participation, Community Hospitals of Central California,
Series 2007, 5.250%, 2/01/46
5,515 California Statewide Community Development Authority, Revenue 3/16 at 100.00 A+ 4,891,584
Bonds, Kaiser Permanante System, Series 2006, 5.000%, 3/01/41
1,840 California Statewide Community Development Authority, Revenue 8/16 at 100.00 A+ 1,718,965
Bonds, Kaiser Permanente System, Series 2001C, 5.250%, 8/01/31
1,000 Stockton, California, Health Facility Revenue Bonds, Dameron 6/08 at 102.00 BBB+ 1,011,200
Hospital Association, Series 1997A, 5.700%, 12/01/14
------------------------------------------------------------------------------------------------------------------------------------
23,615 Total Health Care 21,621,712
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 1.6% (1.0% OF TOTAL INVESTMENTS)
455 California Housing Finance Agency, Home Mortgage Revenue 2/16 at 100.00 Aa2 471,867
Bonds, Series 2006H, 5.750%, 8/01/30 - FGIC Insured
(Alternative Minimum Tax)
2,420 California Housing Finance Agency, Home Mortgage Revenue 2/16 at 100.00 Aa2 2,494,415
Bonds, Series 2006K, 5.500%, 2/01/42 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,875 Total Housing/Single Family 2,966,282
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.6% (0.3% OF TOTAL INVESTMENTS)
1,250 California Pollution Control Financing Authority, Solid Waste 1/16 at 102.00 BBB 1,118,850
Disposal Revenue Bonds, Waste Management Inc.,
Series 2002A, 5.000%, 1/01/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 3.6% (2.3% OF TOTAL INVESTMENTS)
4,750 California Statewide Communities Development Authority, 12/17 at 100.00 Baa1 4,159,338
Revenue Bonds, Inland Regional Center Project, Series 2007,
5.375%, 12/01/37
2,595 California Statewide Community Development Authority, 4/09 at 101.00 BBB 2,598,140
Certificates of Participation, Internext Group, Series 1999,
5.375%, 4/01/17
------------------------------------------------------------------------------------------------------------------------------------
7,345 Total Long-Term Care 6,757,478
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 12.3% (7.8% OF TOTAL INVESTMENTS)
5 California State, General Obligation Bonds, Series 2004, 4/14 at 100.00 A+ 4,863
5.250%, 4/01/34
2,000 California, General Obligation Bonds, Series 2003, 5.250%, 2/01/20 8/13 at 100.00 A+ 2,038,520
1,000 California, General Obligation Bonds, Series 2004, 5.000%, 2/01/21 2/14 at 100.00 A+ 987,690
2,395 Fontana Unified School District, San Bernardino County, California, 5/09 at 102.00 A+ 2,513,792
General Obligation Refunding Bonds, Series 1997D,
5.800%, 5/01/17 - FGIC Insured
10,060 Los Angeles, California, General Obligation Bonds, Series 2001A, 9/11 at 100.00 AA 10,148,426
5.000%, 9/01/21
3,250 Puerto Rico, General Obligation and Public Improvement Bonds, No Opt. Call AAA 3,342,203
Series 2001A, 5.500%, 7/01/20 - MBIA Insured
20 Riverside Community College District, California, General Obligation 8/14 at 100.00 AAA 20,536
Bonds, Series 2004A, 5.250%, 8/01/21 - MBIA Insured
36
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 345 Roseville Joint Union High School District, Placer County, 8/15 at 100.00 AA- $ 337,024
California, General Obligation Bonds, Series 2006B,
5.000%, 8/01/27 - FGIC Insured
3,500 San Diego Unified School District, San Diego County, California, 7/13 at 101.00 AAA 3,815,910
General Obligation Bonds, Series 2003E, 5.250%, 7/01/24 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
22,575 Total Tax Obligation/General 23,208,964
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 42.0% (26.5% OF TOTAL INVESTMENTS)
3,000 California State Public Works Board, Lease Revenue Bonds, 6/14 at 100.00 A 3,108,150
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 2,887,410
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+ 2,474,926
5.000%, 7/01/15
425 Capistrano Unified School District, Orange County, California, 9/15 at 100.00 A 396,895
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 1,599,737
Revenue Bonds, North Fontana Redevelopment Project,
Series 2003A, 5.375%, 9/01/25 - AMBAC Insured
840 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 AAA 611,596
Enhanced Asset Backed Settlement Revenue Bonds,
Series 2005A, Trust Series 1500, 7.910%, 6/01/45 -
AMBAC Insured (IF)
Golden State Tobacco Securitization Corporation, California,
Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A,
Trust 2215-1:
1,175 9.467%, 6/01/38 - FGIC Insured (IF) 6/15 at 100.00 A2 804,241
825 9.467%, 6/01/45 - FGIC Insured (IF) 6/15 at 100.00 AAA 525,905
7,935 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 AAA 7,215,692
Tobacco Settlement Asset-Backed Revenue Bonds,
Series 2005A, 5.000%, 6/01/45 - AMBAC Insured
1,770 Hawthorne Community Redevelopment Agency, California, 9/16 at 100.00 A- 1,649,180
Project Area 2 Tax Allocation Bonds, Series 2006,
5.000%, 9/01/26 - XLCA Insured
3,840 Hesperia Community Redevelopment Agency, California, 9/15 at 100.00 A3 3,508,608
Tax Allocation Bonds, Series 2005A, 5.000%, 9/01/35 -
XLCA Insured
Irvine, California, Unified School District, Community Facilities
District Special Tax Bonds, Series 2006A:
205 5.000%, 9/01/26 9/16 at 100.00 N/R 179,881
470 5.125%, 9/01/36 9/16 at 100.00 N/R 399,759
770 Los Angeles Community Redevelopment Agency, California, 9/15 at 100.00 Aaa 699,553
Lease Revenue Bonds, Manchester Social Services Project,
Series 2005, 5.000%, 9/01/37 - AMBAC Insured
6,665 Los Angeles County Public Works Financing Authority, California, No Opt. Call N/R 6,665,000
Lease Revenue Bonds, Series 2006B, Floaters 1940,
6.970%, 9/01/31
3,335 Los Angeles County Public Works Financing Authority, California, 9/16 at 100.00 Baa3 2,592,696
Lease Revenue Bonds, Series 2006B, Residuals 1940,
0.7334%, 9/01/31 - FGIC Insured (IF)
4,130 Manteca Unified School District, San Joaquin County, California, 9/11 at 101.00 AAA 4,139,871
Special Tax Bonds, Community Facilities District 89-2,
Series 2001C, 5.000%, 9/01/23 - MBIA Insured
3,890 Ontario Redevelopment Financing Authority, California, Lease 8/11 at 101.00 AAA 3,899,920
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 4,367,484
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 3/08 at 101.00 N/R 1,690,459
District 5, Freeway Interchange Project, Series 1997,
6.375%, 9/01/17
1,500 Orange County, California, Special Tax Bonds, Community Facilities 8/12 at 101.00 N/R 1,393,080
District 03-1 of Ladera Ranch, Series 2004A, 5.625%, 8/15/34
37
NQC
Nuveen California Investment Quality Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS February 29, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,000 Paramount Redevelopment Agency, California, Tax Allocation Bonds, 8/13 at 100.00 AAA $ 983,080
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 A- 342,938
Merged Project Area, Series 2005A, 5.000%, 9/01/35 -
XLCA Insured
2,000 Rohnert Park Community Development Commission, California, 8/17 at 100.00 A 1,871,500
Redevelopment Project Tax Allocation Bonds, Series 2007R,
5.000%, 8/01/37 - FGIC Insured
460 Roseville, California, Certificates of Participation, Public 8/13 at 100.00 AAA 443,090
Facilities, Series 2003A, 5.000%, 8/01/25 - AMBAC Insured
4,000 Sacramento City Financing Authority, California, Lease Revenue No Opt. Call AAA 4,171,880
Refunding Bonds, Series 1993A, 5.400%, 11/01/20 - AMBAC Insured
2,000 San Jose Financing Authority, California, Lease Revenue Refunding 6/12 at 100.00 AAA 2,058,300
Bonds, Civic Center Project, Series 2002B, 5.250%, 6/01/19 -
AMBAC Insured
3,535 San Jose Financing Authority, California, Lease Revenue Refunding 9/11 at 100.00 AAA 3,560,381
Bonds, Convention Center Project, Series 2001F, 5.000%, 9/01/20 -
MBIA Insured
6,000 San Ramon Public Financing Authority, California, Tax Allocation 2/16 at 100.00 AAA 5,611,920
Revenue Bonds, Series 2006A, 5.000%, 2/01/38 -
AMBAC Insured (UB)
2,840 Santa Clara Redevelopment Agency, California, Tax Allocation 6/13 at 100.00 AAA 2,792,203
Bonds, Bayshore North Project, Series 2003, 5.000%, 6/01/23 -
MBIA Insured
5,250 Santa Cruz County Redevelopment Agency, California, Subordinate 9/10 at 102.00 AAA 5,220,285
Lien Tax Allocation Bonds, Live Oak and Soquel Community
Improvement Projects, Series 2000, 5.250%, 9/01/25 -
AMBAC Insured
1,265 Washington Unified School District, Yolo County, California, 8/17 at 100.00 AAA 1,183,951
Certificates of Participation, Series 2007, 5.125%, 8/01/37 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
81,725 Total Tax Obligation/Limited 79,049,571
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 28.8% (18.2% OF TOTAL INVESTMENTS)
13,000 Alameda Corridor Transportation Authority, California, Senior 10/09 at 101.00 AAA 12,598,819
Lien Revenue Bonds, Series 1999A, 5.000%, 10/01/29 -
MBIA Insured
2,080 Bay Area Toll Authority, California, Revenue Bonds, San Francisco 4/16 at 100.00 AA 2,005,390
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- 5,655,845
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 9,968,123
5.500%, 5/15/25 (Alternative Minimum Tax)
9,000 Port of Oakland, California, Revenue Bonds, Series 2000K, 5/10 at 100.00 A+ 8,856,809
5.750%, 11/01/29 - FGIC Insured (Alternative Minimum Tax)
15,000 San Francisco Airports Commission, California, Revenue Bonds, 5/10 at 101.00 AAA 15,059,249
San Francisco International Airport, Second Series 2000,
Issue 24A, 5.750%, 5/01/30 - FSA Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
55,560 Total Transportation 54,144,235
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 23.7% (15.0% OF TOTAL INVESTMENTS) (4)
6,000 California Department of Water Resources, Power Supply Revenue 5/12 at 101.00 Aaa 6,499,560
Bonds, Series 2002A, 5.125%, 5/01/18 (Pre-refunded 5/01/12)
2,070 California Educational Facilities Authority, Revenue Bonds, 11/10 at 100.00 Aaa 2,221,214
University of the Pacific, Series 2000, 5.750%, 11/01/30
(Pre-refunded 11/01/10) - MBIA Insured
38
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 2,110 California Health Facilities Financing Authority, Revenue Bonds, 10/08 at 101.00 AAA $ 2,159,691
Kaiser Permanente System, Series 1998B, 5.250%, 10/01/12 (ETM)
3,145 California, General Obligation Bonds, Series 2004, 4/14 at 100.00 A+ (4) 3,425,471
5.250%, 4/01/34 (Pre-refunded 4/01/14)
5,300 California, Various Purpose General Obligation Bonds, 3/10 at 101.00 AAA 5,665,011
Series 2000, 5.750%, 3/01/27 (Pre-refunded 3/01/10) -
MBIA Insured
2,000 Daly City Housing Development Finance Agency, California, 12/13 at 102.00 A- (4) 2,275,580
Mobile Home Park Revenue Bonds, Franciscan Mobile Home
Park Project, Series 2002A, 5.850%, 12/15/32
(Pre-refunded 12/15/13)
2,250 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 2,440,463
Enhanced Tobacco Settlement Asset-Backed Bonds,
Series 2003B, 5.625%, 6/01/33 (Pre-refunded 6/01/13)
1,935 Los Angeles Community Redevelopment Agency, California, 7/08 at 100.00 BBB (4) 1,940,128
Tax Allocation Refunding Bonds, Central Business District
Redevelopment Project, Series 1987G, 6.750%, 7/01/10 (ETM)
Los Angeles County Metropolitan Transportation Authority,
California, Proposition C Second Senior Lien Sales Tax Revenue
Bonds, Series 2000A:
8,005 5.250%, 7/01/25 (Pre-refunded 7/01/10) - FGIC Insured 7/10 at 101.00 AA (4) 8,508,515
1,500 5.250%, 7/01/30 (Pre-refunded 7/01/10) - FGIC Insured 7/10 at 101.00 AA (4) 1,594,350
2,285 Moreno Valley Unified School District, Riverside County, 8/14 at 100.00 AAA 2,496,660
California, General Obligation Bonds, Series 2004A,
5.250%, 8/01/24 (Pre-refunded 8/01/14) - FSA Insured
4,000 Puerto Rico Highway and Transportation Authority, Highway 7/12 at 100.00 AAA 4,316,840
Revenue Bonds, Series 2002D, 5.375%, 7/01/36
(Pre-refunded 7/01/12)
1,000 Tobacco Securitization Authority of Southern California, 6/12 at 100.00 AAA 1,087,120
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)
------------------------------------------------------------------------------------------------------------------------------------
41,600 Total U.S. Guaranteed 44,630,603
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 6.0% (3.8% OF TOTAL INVESTMENTS)
2,250 Long Beach Bond Finance Authority, California, Natural Gas No Opt. Call A1 2,020,365
Purchase Revenue Bonds, Series 2007A, 5.500%, 11/15/37
5,000 Los Angeles Department of Water and Power, California, Power 7/11 at 100.00 AAA 5,117,550
System Revenue Bonds, Series 2001A-1, 5.250%, 7/01/20 -
FSA Insured
740 Merced Irrigation District, California, Electric System Revenue 9/15 at 100.00 A- 690,709
Bonds, Series 2005, 5.125%, 9/01/31 - XLCA Insured
3,210 Turlock Irrigation District, California, Electric Revenue Bonds, 1/13 at 100.00 AAA 3,361,287
Series 2003A, 5.000%, 1/01/16 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
11,200 Total Utilities 11,189,911
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 7.7% (4.8% OF TOTAL INVESTMENTS)
3,330 California Department of Water Resources, Water System Revenue 12/11 at 100.00 AA 3,578,418
Bonds, Central Valley Project, Series 2001W, 5.500%, 12/01/16
520 Healdsburg Public Financing Authority, California, Wastewater 4/16 at 100.00 AAA 491,514
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 1,558,845
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 A+ 3,134,997
Bonds, Series 2003, 5.000%, 6/01/17 - FGIC Insured
39
NQC
Nuveen California Investment Quality Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS February 29, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 870 Sacramento County Sanitation District Financing Authority, 6/16 at 100.00 AA $ 824,264
California, Revenue Bonds, Series 2006, 5.000%, 12/01/36 -
FGIC Insured
1,310 San Elijo Joint Powers Authority, San Diego County, California, 3/12 at 101.00 AAA 1,377,662
Revenue Refunding Bonds, San Elijo Wastewater Facilities,
Series 2003, 5.000%, 3/01/17 - FSA Insured
3,430 Westlands Water District, California, Revenue Certificates of 9/12 at 101.00 AAA 3,457,681
Participation, Series 2002, 5.250%, 9/01/22 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
13,975 Total Water and Sewer 14,423,381
------------------------------------------------------------------------------------------------------------------------------------
$ 305,985 Total Investments (cost $304,007,925) - 158.7% 298,307,328
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (4.9)% (9,170,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 5.8% 10,860,209
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (59.6)% (5) (112,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 187,997,537
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices
of the earliest optional call or redemption. There may be
other call provisions at varying prices at later dates.
Certain mortgage-backed securities may be subject to
periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group
("Standard & Poor's") or Moody's Investor Service, Inc.
("Moody's") rating. Ratings below BBB by Standard & Poor's
or Baa by Moody's are considered to be below investment
grade.
The Portfolio of Investments reflects the ratings on certain
bonds insured by AMBAC, FGIC, MBIA and XLCA as of February
29, 2008. Subsequent to February 29, 2008, at least one
rating agency reduced the rating for AMBAC-insured bonds to
AA and at least one rating agency further reduced the
ratings for FGIC-insured and XLCA-insured bonds. As of
February 29, 2008, one or more rating agencies have placed
each of these insurers on "negative credit watch", which may
presage one or more rating reductions for such insurer or
insurers in the future. If one or more insurers' ratings are
reduced by these rating agencies, it would likely reduce the
effective rating of many of the bonds insured by that
insurer or insurers.
(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) Preferred Shares, at Liquidation Value as a percentage of
total investments is (37.5)%.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected
as a financing transaction pursuant to the provisions of
SFAS No. 140.
See accompanying notes to financial statements.
40
NVC
Nuveen California Select Quality Municipal Fund, Inc.
Portfolio of INVESTMENTS
February 29, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 7.7% (4.8% OF TOTAL INVESTMENTS)
$ 1,270 California County Tobacco Securitization Agency, Tobacco 6/15 at 100.00 BBB $ 1,166,368
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 4,226,695
Settlement Asset-Backed Bonds, Stanislaus County Tobacco
Funding Corporation, Series 2002A, 5.500%, 6/01/33
6,000 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 5,363,220
Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2007A-1,
5.750%, 6/01/47
22,915 Golden State Tobacco Securitization Corporation, California, 6/22 at 100.00 BBB 13,685,984
Enhanced Tobacco Settlement Asset-Backed Bonds,
Series 2007A-2, 0.000%, 6/01/37
------------------------------------------------------------------------------------------------------------------------------------
34,810 Total Consumer Staples 24,442,267
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 2.9% (1.8% OF TOTAL INVESTMENTS)
290 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 A3 264,173
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 192,544
270 5.000%, 11/01/25 11/15 at 100.00 A2 249,953
1,595 California Infrastructure Economic Development Bank, Revenue 10/12 at 100.00 Aa3 1,596,531
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 1,698,136
Revenue Bonds, Scripps Research Institute, Series 2005A,
5.000%, 7/01/24
6,000 University of California, General Revenue Bonds, Series 2006J, 5/15 at 101.00 AAA 5,226,480
4.500%, 5/15/35 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
10,095 Total Education and Civic Organizations 9,227,817
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 17.6% (10.9% OF TOTAL INVESTMENTS)
1,750 ABAG Finance Authority for Non-Profit Corporations, California, 4/12 at 100.00 A+ 1,761,218
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 7/08 at 100.00 AAA 542,368
Facility Revenue Refunding Bonds, Catholic Healthcare West,
Series 1994A, 4.750%, 7/01/19 - MBIA Insured
2,675 California Health Facilities Financing Authority, Revenue Bonds, 11/15 at 100.00 A2 2,467,607
Cedars-Sinai Medical Center, Series 2005, 5.000%, 11/15/34
675 California Health Facilities Financing Authority, Revenue Bonds, 4/16 at 100.00 A+ 597,355
Kaiser Permanante System, Series 2006, 5.000%, 4/01/37
6,085 California Health Facilities Financing Authority, Revenue Bonds, 11/16 at 100.00 AA- 4,609,874
Sutter Health, Residual Trust 2061, 9.162%, 11/15/46 (IF)
15,145 California Health Facilities Financing Authority, Revenue Bonds, 11/16 at 100.00 AA- 13,921,284
Sutter Health, Series 2007A, 5.250%, 11/15/46 (UB)
9,435 California Statewide Community Development Authority, Revenue 3/16 at 100.00 A+ 8,368,468
Bonds, Kaiser Permanante System, Series 2006, 5.000%, 3/01/41
3,140 California Statewide Community Development Authority, Revenue 8/16 at 100.00 A+ 2,933,451
Bonds, Kaiser Permanente System, Series 2001C, 5.250%, 8/01/31
41
NVC
Nuveen California Select Quality Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS February 29, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 1,355 California Statewide Community Development Authority, Revenue No Opt. Call AAA $ 1,371,788
Bonds, Sherman Oaks Health System, Series 1998A,
5.000%, 8/01/22 - AMBAC Insured
6,000 Madera County, California, Certificates of Participation, Valley 3/08 at 100.00 AAA 6,006,960
Children's Hospital Project, Series 1995, 5.750%, 3/15/28 -
MBIA Insured
13,855 Rancho Mirage Joint Powers Financing Authority, California, 7/17 at 100.00 A3 12,253,223
Revenue Bonds, Eisenhower Medical Center, Series 2007A,
5.000%, 7/01/38
1,050 Stockton, California, Health Facility Revenue Bonds, Dameron 6/08 at 102.00 BBB+ 1,070,307
Hospital Association, Series 1997A, 5.450%, 12/01/10
------------------------------------------------------------------------------------------------------------------------------------
61,710 Total Health Care 55,903,903
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.8% (1.1% OF TOTAL INVESTMENTS)
1,000 Independent Cities Lease Finance Authority, California, Revenue 11/14 at 100.00 N/R 909,430
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 4,662,885
Monterey Manor Mobile Home Estates Project, Series 2000,
6.400%, 12/15/30
------------------------------------------------------------------------------------------------------------------------------------
5,750 Total Housing/Multifamily 5,572,315
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.2% (0.2% OF TOTAL INVESTMENTS)
790 California Housing Finance Agency, Home Mortgage Revenue 2/16 at 100.00 Aa2 819,285
Bonds, Series 2006H, 5.750%, 8/01/30 - FGIC Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 2.1% (1.3% OF TOTAL INVESTMENTS)
5,000 California Pollution Control Financing Authority, Solid Waste No Opt. Call BBB+ 4,809,450
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 1,790,160
Disposal Revenue Bonds, Waste Management Inc.,
Series 2002A, 5.000%, 1/01/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
7,000 Total Industrials 6,599,610
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.2% (0.8% OF TOTAL INVESTMENTS)
California Statewide Communities Development Authority,
Revenue Bonds, Inland Regional Center Project, Series 2007:
460 5.250%, 12/01/27 12/17 at 100.00 Baa1 421,084
4,000 5.375%, 12/01/37 12/17 at 100.00 Baa1 3,502,600
------------------------------------------------------------------------------------------------------------------------------------
4,460 Total Long-Term Care 3,923,684
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 19.0% (11.8% OF TOTAL INVESTMENTS)
California, General Obligation Bonds, Series 2003:
3,750 5.250%, 11/01/19 - RAAI Insured 11/13 at 100.00 AA 3,816,450
1,000 5.250%, 2/01/22 - CIFG Insured 8/13 at 100.00 AAA 1,017,400
5,000 5.250%, 2/01/22 8/13 at 100.00 A+ 5,034,900
California, General Obligation Bonds, Series 2004:
3,800 5.000%, 2/01/21 2/14 at 100.00 A+ 3,753,222
1,850 5.200%, 4/01/26 4/14 at 100.00 A+ 1,803,362
4,700 California, Various Purpose General Obligation Bonds, 5/10 at 101.00 A1 4,899,233
Series 2000, 5.625%, 5/01/22 - FGIC Insured
3,850 Coachella Valley Unified School District, Riverside County, 8/15 at 100.00 A 3,589,432
California, General Obligation Bonds, Series 2005A,
5.000%, 8/01/30 - FGIC 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 1,511,983
1,040 5.250%, 5/01/20 - MBIA Insured 5/14 at 100.00 AAA 1,060,779
4,000 Long Beach Community College District, California, General 5/15 at 100.00 AA- 3,854,400
Obligation Bonds, Series 2005B, 5.000%, 5/01/30 - FGIC Insured
42
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 10,060 Los Angeles, California, General Obligation Bonds, 9/11 at 100.00 AA $ 10,171,062
Series 2001A, 5.000%, 9/01/20
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 2,691,220
3,875 5.000%, 8/01/26 - FSA Insured 8/14 at 102.00 AAA 3,819,820
6,000 North Orange County Community College District, California, No Opt. Call AA 1,860,660
General Obligation Bonds, Series 2003B, 0.000%, 8/01/27 -
FGIC Insured
5,000 Puerto Rico, General Obligation and Public Improvement Bonds, No Opt. Call AAA 5,141,850
Series 2001A, 5.500%, 7/01/20 - MBIA Insured
585 Roseville Joint Union High School District, Placer County, 8/15 at 100.00 AA- 571,475
California, General Obligation Bonds, Series 2006B,
5.000%, 8/01/27 - FGIC Insured
3,760 West Contra Costa Unified School District, Contra Costa County, 8/11 at 101.00 AAA 3,780,567
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 A 1,983,700
California, General Obligation Bonds, Series 2003C,
5.000%, 8/01/22 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
64,450 Total Tax Obligation/General 60,361,515
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 29.3% (18.2% OF TOTAL INVESTMENTS)
2,870 Bell Community Redevelopment Agency, California, Tax Allocation 10/13 at 100.00 AA 2,871,205
Bonds, Bell Project Area, Series 2003, 5.500%, 10/01/23 -
RAAI 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 4,118,080
2,000 5.500%, 6/01/23 6/14 at 100.00 A 2,036,860
730 Capistrano Unified School District, Orange County, California, 9/15 at 100.00 A 681,725
Special Tax Bonds, Community Facilities District, Series 2005,
5.000%, 9/01/24 - FGIC Insured
1,000 Coachella Valley Unified School District, Riverside County, 9/16 at 100.00 Aaa 925,790
California, Certificates of Participation, Series 2007,
5.000%, 9/01/31 - AMBAC Insured
3,000 Coronado Community Development Agency, California, Tax 9/15 at 100.00 AAA 2,818,740
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 1,022,811
California, General Obligation Bonds, School Facilities
Improvement District 2, Series 2004B, 5.000%, 10/01/25 -
FSA Insured
Golden State Tobacco Securitization Corporation, California,
Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A,
Trust 2215-1:
1,940 9.467%, 6/01/38 - FGIC Insured (IF) 6/15 at 100.00 A2 1,327,852
1,355 9.467%, 6/01/45 - FGIC Insured (IF) 6/15 at 100.00 AAA 863,758
1,785 Hawthorne Community Redevelopment Agency, California, 9/16 at 100.00 A- 1,698,981
Project Area 2 Tax Allocation Bonds, Series 2006, 5.250%, 9/01/36 -
XLCA Insured
1,500 Hesperia Unified School District, San Bernardino County, 2/17 at 100.00 AAA 1,373,685
California, Certificates of Participation, Capital Improvement,
Series 2007, 5.000%, 2/01/41 - AMBAC Insured
435 Indian Wells Redevelopment Agency, California, Tax Allocation 9/13 at 100.00 AAA 437,597
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 9/16 at 100.00 N/R 307,115
805 5.125%, 9/01/36 9/16 at 100.00 N/R 684,693
3,000 La Quinta Redevelopment Agency, California, Tax Allocation 9/11 at 102.00 AAA 3,007,860
Bonds, Redevelopment Project Area 1, Series 2001,
5.000%, 9/01/21 - AMBAC Insured
3,510 Long Beach Bond Financing Authority, California, Lease Revenue 4/08 at 102.00 AAA 3,337,308
and Refunding Bonds, Civic Center Project, Series 1997A,
5.000%, 10/01/27 - MBIA Insured
43
NVC
Nuveen California Select Quality Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS February 29, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 4,315 Los Angeles Community Redevelopment Agency, California, Lease 9/15 at 100.00 Aaa $ 3,920,221
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 16,394,070
California, Proposition C Second Senior Lien Sales Tax Revenue
Refunding Bonds, Series 1998A, 5.000%, 7/01/23 -
AMBAC Insured
Los Angeles, California, Municipal Improvement Corporation,
Lease Revenue Bonds, Police Headquarters, Series 2006A:
1,000 5.000%, 1/01/25 - FGIC Insured 1/17 at 100.00 AA- 961,400
8,175 4.750%, 1/01/31 - FGIC Insured 1/17 at 100.00 AA- 7,285,070
2,580 Oakland Redevelopment Agency, California, Subordinate Lien Tax 3/13 at 100.00 A 2,693,881
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 3,559,757
Bonds, Elihu M. Harris State Office Building, Series 1998A,
5.000%, 4/01/23 - AMBAC Insured
2,280 Ontario Redevelopment Financing Authority, California, Lease 8/11 at 101.00 AAA 2,357,566
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 946,630
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 1,073,005
Certificates of Participation, School Construction Project,
Series 2006, 5.000%, 9/01/23 - MBIA Insured
8,750 Pittsburg Redevelopment Agency, California, Tax Allocation Bonds, No Opt. Call AAA 3,526,600
Los Medanos Community Development Project, Series 1999,
0.000%, 8/01/23 - AMBAC Insured
635 Rialto Redevelopment Agency, California, Tax Allocation Bonds, 9/15 at 100.00 A- 588,556
Merged Project Area, Series 2005A, 5.000%, 9/01/35 -
XLCA Insured
110 Riverside Public Financing Authority, California, Revenue Bonds, 8/08 at 100.00 N/R 110,895
Multiple Project Loans, Series 1991A, 8.000%, 2/01/18
820 Roseville, California, Certificates of Participation, Public 8/13 at 100.00 AAA 789,857
Facilities, Series 2003A, 5.000%, 8/01/25 - AMBAC Insured
2,200 San Jose Financing Authority, California, Lease Revenue Refunding 9/11 at 100.00 AAA 2,215,796
Bonds, Convention Center Project, Series 2001F,
5.000%, 9/01/20 - MBIA Insured
1,365 San Mateo Union High School District, San Mateo County, 12/17 at 100.00 AAA 1,258,516
California, Certificates of Participation, Phase 1, Series 2007A,
5.000%, 12/15/30 - AMBAC Insured
4,625 Santa Clara Redevelopment Agency, California, Tax Allocation 6/13 at 100.00 AAA 4,809,075
Bonds, Bayshore North Project, Series 2003, 5.000%, 6/01/17 -
MBIA Insured
6,870 Vernon Redevelopment Agency, California, Tax Allocation Bonds, 9/15 at 100.00 AAA 6,358,391
Industrial Redevelopment Project, Series 2005, 5.000%, 9/01/35 -
MBIA Insured
2,175 Washington Unified School District, Yolo County, California, 8/17 at 100.00 AAA 2,035,648
Certificates of Participation, Series 2007, 5.125%, 8/01/37 -
AMBAC Insured
5,000 West Hollywood, California, Refunding Certificates of Participation, 8/08 at 102.00 AAA 4,877,150
Series 1998, 5.000%, 2/01/25 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
102,435 Total Tax Obligation/Limited 93,276,144
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 17.5% (10.9% OF TOTAL INVESTMENTS)
2,210 Bay Area Toll Authority, California, Revenue Bonds, San Francisco 4/16 at 100.00 AA 2,130,727
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 7,558,561
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- 9,136,365
Toll Road Revenue Refunding Bonds, Series 1999, 0.000%, 1/15/29
8,000 Port of Oakland, California, Revenue Bonds, Series 2000K, 5/10 at 100.00 A+ 7,872,720
5.750%, 11/01/29 - FGIC Insured (Alternative Minimum Tax)
44
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION (continued)
$ 20,000 San Francisco Airports Commission, California, Revenue Bonds, 5/10 at 101.00 AAA $ 20,078,998
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 A1 5,166,550
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 3,689,665
Refunding Bonds, San Francisco International Airport, Second
Series 2002, Issue 28A, 5.250%, 5/01/18 - MBIA Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
57,675 Total Transportation 55,633,586
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 40.6% (25.2% OF TOTAL INVESTMENTS) (4)
9,750 California Department of Water Resources, Power Supply Revenue 5/12 at 101.00 Aaa 10,561,785
Bonds, Series 2002A, 5.125%, 5/01/18 (Pre-refunded 5/01/12)
13,000 California Health Facilities Financing Authority, Revenue Bonds, 12/09 at 101.00 N/R (4) 13,859,690
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 7/08 at 100.00 Aaa 3,486,450
Disposal Revenue Bonds, North County Recycling Center,
Series 1991A, 6.750%, 7/01/17 (ETM)
California Statewide Community Development Authority, Certificates
of Participation, Catholic Healthcare West, Series 1999:
4,495 6.500%, 7/01/20 (Pre-refunded 7/01/10) 7/10 at 101.00 A (4) 4,896,448
1,845 6.500%, 7/01/20 (Pre-refunded 7/01/10) at 101.00 A (4) 2,005,829
10,000 California, Various Purpose General Obligation Bonds, 3/10 at 101.00 AAA 10,688,700
Series 2000, 5.750%, 3/01/27 (Pre-refunded 3/01/10) -
MBIA Insured
950 Contra Costa County, California, GNMA Mortgage-Backed No Opt. Call AAA 990,945
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, General 8/09 at 102.00 A+ (4) 5,521,618
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 2,169,300
2,500 5.625%, 6/01/38 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 2,711,625
3,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 3,413,220
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.750%, 6/01/39 (Pre-refunded 6/01/13)
3,000 Los Angeles County Metropolitan Transportation Authority, 7/10 at 101.00 AA (4) 3,188,700
California, Proposition C Second Senior Lien Sales Tax Revenue
Bonds, Series 2000A, 5.250%, 7/01/25 (Pre-refunded 7/01/10) -
FGIC Insured
6,030 Los Angeles Unified School District, California, General Obligation 7/10 at 100.00 AA- (4) 6,369,791
Bonds, Series 2000D, 5.375%, 7/01/25 (Pre-refunded 7/01/10) -
FGIC Insured
Monterey County, California, Certificates of Participation,
Master Plan Financing, Series 2001:
2,075 5.000%, 8/01/19 (Pre-refunded 8/01/11) - MBIA Insured 8/11 at 100.00 Aaa 2,201,886
3,000 5.000%, 8/01/26 (Pre-refunded 8/01/11) - MBIA Insured 8/11 at 100.00 Aaa 3,183,450
2,270 Pajaro Valley Unified School District, Santa Cruz County, 8/13 at 100.00 AAA 2,446,424
California, General Obligation Bonds, Series 2003A,
5.000%, 8/01/20 (Pre-refunded 8/01/13) - FSA Insured
10,000 Puerto Rico Highway and Transportation Authority, Highway 7/10 at 101.00 BBB+ (4) 10,766,700
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 4,150,080
Obligation Bonds, Series 2000A, 5.500%, 10/01/32
2,000 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call Aaa 2,237,580
Appropriation Bonds, Series 2002E, 6.000%, 8/01/26 -
AGC Insured (ETM)
17,670 San Francisco City and County Public Utilities Commission, 11/11 at 100.00 AAA 18,816,606
California, Water Revenue Bonds, Series 2001A,
5.000%, 11/01/24 (Pre-refunded 11/01/11) - FSA Insured
45
NVC
Nuveen California Select Quality Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS February 29, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
Solano County, California, Certificates of Participation, Series 2002:
$ 2,415 5.250%, 11/01/22 (Pre-refunded 11/01/12) - MBIA Insured 11/12 at 100.00 AAA $ 2,617,039
1,625 5.250%, 11/01/23 (Pre-refunded 11/01/12) - MBIA Insured 11/12 at 100.00 AAA 1,760,948
6,555 Sweetwater Authority, California, Water Revenue Bonds, 4/10 at 101.00 AAA 6,921,752
Series 2002, 5.000%, 4/01/22 (Pre-refunded 4/01/10) -
FSA Insured
2,000 University of California, Revenue Bonds, Research Facilities, 9/09 at 101.00 AAA 2,085,260
Series 2001E, 5.000%, 9/01/22 (Pre-refunded 9/01/09) -
AMBAC Insured
2,000 Vista, California, Mobile Home Park Revenue Bonds, Vista 3/24 at 100.00 N/R (4) 2,076,100
Manor Mobile Home Park Project, Series 1999A,
5.750%, 3/15/29 (Pre-refunded 3/15/24)
------------------------------------------------------------------------------------------------------------------------------------
120,695 Total U.S. Guaranteed 129,127,926
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 15.4% (9.5% OF TOTAL INVESTMENTS)
2,000 Anaheim Public Finance Authority, California, Revenue Refunding 10/12 at 100.00 AAA 2,111,080
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 1,841,657
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+ 11,734,830
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 4,034,800
Participation, Electric System Revenue Bonds, Series 2003,
5.250%, 11/01/23 - FSA Insured
3,855 Long Beach Bond Finance Authority, California, Natural Gas No Opt. Call A1 3,461,559
Purchase Revenue Bonds, Series 2007A, 5.500%, 11/15/37
5,000 Los Angeles Department of Water and Power, California, Power 7/11 at 100.00 AAA 5,132,800
System Revenue Bonds, Series 2001A-2, 5.375%, 7/01/20 -
MBIA Insured
5,000 Los Angeles Department of Water and Power, California, Power 7/15 at 100.00 AAA 4,845,650
System Revenue Bonds, Series 2005A-1, 5.000%, 7/01/31 -
FSA Insured
5,225 Los Angeles, California, Sanitation Equipment Charge Revenue 2/11 at 100.00 AAA 5,440,584
Bonds, Series 2001A, 5.250%, 2/01/18 - FSA Insured
1,025 Los Angeles, California, Sanitation Equipment Charge Revenue 2/14 at 100.00 AAA 1,025,994
Bonds, Series 2004A, 5.000%, 2/01/22 - AMBAC Insured
1,260 Merced Irrigation District, California, Electric System Revenue 9/15 at 100.00 A- 1,176,071
Bonds, Series 2005, 5.125%, 9/01/31 - XLCA Insured
4,360 Sacramento Municipal Utility District, California, Electric Revenue 8/12 at 100.00 AAA 4,555,415
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 3,479,895
Magnolia Power Project, Series 2003-1A, 5.000%, 7/01/20 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
47,345 Total Utilities 48,840,335
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 5.7% (3.5% OF TOTAL INVESTMENTS)
1,185 Burbank, California, Wastewater System Revenue Bonds, 6/14 at 100.00 AAA 1,174,501
Series 2004A, 5.000%, 6/01/24 - AMBAC Insured
890 Healdsburg Public Financing Authority, California, Wastewater 4/16 at 100.00 AAA 841,246
Revenue Bonds, Series 2006, 5.000%, 4/01/36 - MBIA Insured
1,250 Indio Water Authority, California, Water Revenue Bonds, Series 2006, 4/16 at 100.00 AAA 1,198,725
5.000%, 4/01/31 - AMBAC Insured
3,750 Metropolitan Water District of Southern California, Water Revenue 10/14 at 100.00 AAA 3,672,263
Bonds, Series 2004B-3, 5.000%, 10/01/29 - MBIA Insured
2,000 Pico Rivera Water Authority, California, Revenue Bonds, 12/11 at 102.00 N/R 1,904,420
Series 2001A, 6.250%, 12/01/32
1,510 Sacramento County Sanitation District Financing Authority, 6/16 at 100.00 AA 1,430,619
California, Revenue Bonds, Series 2006, 5.000%, 12/01/36 -
FGIC Insured
46
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 2,525 Sacramento County Sanitation District Financing Authority, No Opt. Call AAA $ 2,712,178
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 2,170,689
2,960 5.250%, 10/01/20 - MBIA Insured 4/13 at 100.00 AAA 3,009,374
------------------------------------------------------------------------------------------------------------------------------------
18,190 Total Water and Sewer 18,114,015
------------------------------------------------------------------------------------------------------------------------------------
$ 535,405 Total Investments (cost $520,821,170) - 161.0% 511,842,402
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (3.2)% (10,096,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.6% 8,180,923
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (60.4)% (5) (192,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 317,927,325
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices
of the earliest optional call or redemption. There may be
other call provisions at varying prices at later dates.
Certain mortgage-backed securities may be subject to
periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group
("Standard & Poor's") or Moody's Investor Service, Inc.
("Moody's") rating. Ratings below BBB by Standard & Poor's
or Baa by Moody's are considered to be below investment
grade.
The Portfolio of Investments reflects the ratings on certain
bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of
February 29, 2008. Subsequent to February 29, 2008, at least
one rating agency reduced the rating for AMBAC-insured bonds
to AA and at least one rating agency further reduced the
ratings for CIFG-insured, FGIC-insured and XLCA-insured
bonds. As of February 29, 2008, one or more rating agencies
have placed each of these insurers on "negative credit
watch", which may presage one or more rating reductions for
such insurer or insurers in the future. If one or more
insurers' ratings are reduced by these rating agencies, it
would likely reduce the effective rating of many of the
bonds insured by that insurer or insurers.
(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) Preferred Shares, at Liquidation Value as a percentage of
total investments is (37.5)%.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected
as a financing transaction pursuant to the provisions of
SFAS No. 140.
See accompanying notes to financial statements.
47
NUC
Nuveen California Quality Income Municipal Fund, Inc.
Portfolio of INVESTMENTS
February 29, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 6.4% (4.0% OF TOTAL INVESTMENTS)
$ 5,000 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 Baa3 $ 4,686,400
Settlement Asset-Backed Bonds, Alameda County Tobacco
Asset Securitization Corporation, Series 2002, 5.750%, 6/01/29
1,220 California County Tobacco Securitization Agency, Tobacco 6/15 at 100.00 BBB 1,120,448
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 4,222,126
Settlement Asset-Backed Bonds, Stanislaus County Tobacco
Funding Corporation, Series 2002A, 5.500%, 6/01/33
8,330 California Statewide Financing Authority, Tobacco Settlement 5/12 at 100.00 Baa3 7,852,858
Asset-Backed Bonds, Pooled Tobacco Securitization Program,
Series 2002A, 5.625%, 5/01/29
3,370 Golden State Tobacco Securitization Corporation, California, 6/22 at 100.00 BBB 2,012,733
Enhanced Tobacco Settlement Asset-Backed Bonds,
Series 2007A-2, 0.000%, 6/01/37
------------------------------------------------------------------------------------------------------------------------------------
22,540 Total Consumer Staples 19,894,565
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 6.2% (3.8% OF TOTAL INVESTMENTS)
280 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 A3 255,063
University of Redlands, Series 2005A, 5.000%, 10/01/35
2,785 California Educational Facilities Authority, Revenue Bonds, 11/10 at 100.00 Aaa 2,814,911
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 187,730
260 5.000%, 11/01/25 11/15 at 100.00 A2 240,695
4,000 California State Public Works Board, Lease Revenue Refunding 3/08 at 100.00 AAA 4,006,840
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 6,432,640
Series 2002A, 5.000%, 11/01/20 - AMBAC Insured
435 California Statewide Community Development Authority, Auxiliary 4/08 at 100.00 AAA 435,605
Organization Revenue Certificates of Participation, University
Corporation - California State University - Northridge,
Series 1996, 6.000%, 4/01/26 - AMBAC Insured
1,000 San Diego County, California, Certificates of Participation, 9/15 at 102.00 Baa3 835,190
Burnham Institute, Series 2006, 5.000%, 9/01/34
4,500 University of California, General Revenue Bonds, Series 2006J, 5/15 at 101.00 AAA 3,919,860
4.500%, 5/15/35 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
19,855 Total Education and Civic Organizations 19,128,534
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 12.8% (8.0% OF TOTAL INVESTMENTS)
1,750 ABAG Finance Authority for Non-Profit Corporations, California, 4/12 at 100.00 A+ 1,761,218
Cal-Mortgage Insured Revenue Bonds, Sansum-Santa Barbara
Medical Foundation Clinic, Series 2002A, 5.500%, 4/01/21
California Health Facilities Financing Authority, Revenue Bonds,
Kaiser Permanante System, Series 2006:
640 5.000%, 4/01/37 4/16 at 100.00 A+ 566,381
3,640 5.250%, 3/01/45 3/16 at 100.00 A+ 3,331,292
14,550 California Health Facilities Financing Authority, Revenue Bonds, 11/16 at 100.00 AA- 13,374,360
Sutter Health, Series 2007A, 5.250%, 11/15/46 (UB)
48
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 2,855 California Municipal Financing Authority, Certificates of 2/17 at 100.00 Baa2 $ 2,330,651
Participation, Community Hospitals of Central California,
Series 2007, 5.250%, 2/01/46
1,225 California State Public Works Board, Revenue Bonds, University 11/14 at 100.00 AAA 1,213,105
of California - Davis Medical Center, Series 2004II-A,
5.000%, 11/01/23 - MBIA Insured
820 California Statewide Community Development Authority, No Opt. Call A2 870,217
Certificates of Participation, Cedars-Sinai Medical Center,
Series 1992, 6.500%, 8/01/12
1,500 California Statewide Community Development Authority, Revenue 7/15 at 100.00 BBB+ 1,328,790
Bonds, Daughters of Charity Health System, Series 2005A,
5.250%, 7/01/30
9,030 California Statewide Community Development Authority, Revenue 3/16 at 100.00 A+ 8,009,249
Bonds, Kaiser Permanante System, Series 2006, 5.000%, 3/01/41
3,015 California Statewide Community Development Authority, Revenue 8/16 at 100.00 A+ 2,816,673
Bonds, Kaiser Permanente System, Series 2001C, 5.250%, 8/01/31
5,825 California Statewide Community Development Authority, Revenue 8/17 at 100.00 AAA 4,206,233
Bonds, Sutter Health, Series 2007C, Residuals 1975,
6.410%, 8/15/38 - AMBAC Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
44,850 Total Health Care 39,808,169
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 3.3% (2.1% OF TOTAL INVESTMENTS)
1,000 California Statewide Community Development Authority, 7/08 at 101.00 N/R 999,820
Revenue Refunding Bonds, Irvine Apartment Communities
Development, Series 1998A, 5.100%, 5/15/25
(Mandatory put 5/17/10)
1,000 Independent Cities Lease Finance Authority, California, 11/14 at 100.00 N/R 909,430
Revenue Bonds, Morgan Hill, Hacienda Valley Mobile Home
Park, Series 2004A, 5.950%, 11/15/39
2,285 Irvine, California, Mobile Home Park Revenue Bonds, Meadows 3/08 at 102.00 N/R 2,289,044
Mobile Home Park, Series 1998A, 5.700%, 3/01/18
2,250 Oceanside, California, Mobile Home Park Revenue Bonds, 3/08 at 102.00 N/R 2,107,283
Laguna Vista Mobile Estates Acquisition Project, Series 1998,
5.800%, 3/01/28
3,040 Riverside County, California, Mobile Home Park Revenue Bonds, 3/09 at 102.00 N/R 2,788,288
Bravo Mobile Home Park Project, Series 1999A, 5.900%, 3/20/29
Yolo County Housing Authority, California, Revenue Refunding Bonds,
Russell Park Apartments, Series 1992A:
205 6.900%, 11/01/08 5/08 at 100.00 Aa2 205,578
1,030 7.000%, 11/01/14 5/08 at 100.00 Aa2 1,058,562
------------------------------------------------------------------------------------------------------------------------------------
10,810 Total Housing/Multifamily 10,358,005
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.3% (0.1% OF TOTAL INVESTMENTS)
755 California Housing Finance Agency, Home Mortgage Revenue 2/16 at 100.00 Aa2 782,988
Bonds, Series 2006H, 5.750%, 8/01/30 - FGIC Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.6% (0.3% OF TOTAL INVESTMENTS)
2,000 California Pollution Control Financing Authority, Solid Waste 1/16 at 102.00 BBB 1,790,160
Disposal Revenue Bonds, Waste Management Inc.,
Series 2002A, 5.000%, 1/01/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.0% (0.6% OF TOTAL INVESTMENTS)
3,500 California Statewide Communities Development Authority, 12/17 at 100.00 Baa1 3,064,775
Revenue Bonds, Inland Regional Center Project, Series 2007,
5.375%, 12/01/37
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 18.0% (11.3)% OF TOTAL INVESTMENTS)
1,900 Azusa Unified School District, Los Angeles County, California, 7/12 at 100.00 AAA 1,981,016
General Obligation Bonds, Series 2002, 5.375%, 7/01/20 -
FSA Insured
35 California State, General Obligation Bonds, Series 2002, 4/12 at 100.00 A+ 33,702
5.250%, 4/01/32
80 California, General Obligation Bonds, Series 2000, 5.500%, 6/01/25 6/10 at 100.00 A+ 80,228
49
NUC
Nuveen California Quality Income Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS February 29, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
California, General Obligation Bonds, Series 2003:
$ 3,750 5.250%, 11/01/19 - RAAI Insured 11/13 at 100.00 AA $ 3,816,450
500 5.250%, 2/01/33 2/13 at 100.00 A+ 480,510
6,300 California, General Obligation Bonds, Series 2004, 5.200%, 4/01/26 4/14 at 100.00 A+ 6,141,177
6,085 California, General Obligation Veterans Welfare Bonds, 6/08 at 101.00 AA- 5,972,002
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 1,422,320
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 3,531,122
Obligation Bonds, Series 2006B, 5.000%, 6/01/29 - FSA Insured
5,255 Livermore Valley Joint Unified School District, Alameda County, 8/11 at 100.00 AAA 5,251,689
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 AA- 2,548,722
Obligation Bonds, Series 2005B, 5.000%, 5/01/30 - FGIC Insured
1,170 Los Angeles Unified School District, California, General Obligation 7/13 at 100.00 Aa3 1,235,766
Bonds, Series 2003F, 5.000%, 7/01/17 - FSA Insured
565 Roseville Joint Union High School District, Placer County, 8/15 at 100.00 AA- 551,937
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 1,472,550
California, General Obligation Bonds, Series 2005,
5.000%, 7/01/27 - MBIA Insured
6,760 San Diego Unified School District, San Diego County, California, 7/13 at 101.00 AAA 7,370,158
General Obligation Bonds, Series 2003E, 5.250%, 7/01/21 -
FSA Insured
515 San Joaquin Delta Community College District, California, General 8/15 at 100.00 AAA 503,716
Obligation Bonds, Series 2005A, 5.000%, 8/01/29 - FSA Insured
1,500 San Jose Unified School District, Santa Clara County, California, 8/15 at 100.00 AA- 1,481,055
General Obligation Bonds, Series 2005B, 5.000%, 8/01/25 -
FGIC Insured
6,865 San Ramon Valley Unified School District, Contra Costa County, 8/13 at 100.00 AAA 6,884,085
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 A+ 1,378,672
California, General Obligation Bonds, Series 2003A,
5.000%, 8/01/22 - FGIC Insured
3,925 West Contra Costa Unified School District, Contra Costa County, 8/11 at 101.00 AAA 3,934,106
California, General Obligation Bonds, Series 2003B,
5.000%, 8/01/23 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
55,720 Total Tax Obligation/General 56,070,983
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 32.8% (20.5% OF TOTAL INVESTMENTS)
1,655 Bell Community Housing Authority, California, Lease Revenue 10/15 at 100.00 AAA 1,527,416
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 1,193,148
West Olive Redevelopment Project, Series 2002,
5.125%, 12/01/22 - AMBAC Insured
3,070 California State Public Works Board, Lease Revenue Bonds, 12/12 at 100.00 AAA 3,260,708
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 2,051,883
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 5,299,396
Department of Mental Health, Coalinga State Hospital,
Series 2004A, 5.500%, 6/01/20
2,715 California, Economic Recovery Revenue Bonds, 7/14 at 100.00 AA+ 2,859,329
Series 2004A, 5.000%, 7/01/15
690 Capistrano Unified School District, Orange County, California, 9/15 at 100.00 A 644,370
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)
$ 3,000 Coachella Valley Unified School District, Riverside County, 9/16 at 100.00 Aaa $ 2,777,370
California, Certificates of Participation, Series 2007,
5.000%, 9/01/31 - AMBAC Insured
Commerce Community Development Commission, California, Tax
Allocation Refunding Bonds, Merged Area Development Projects 2
and 3, Series 1998A:
1,000 5.650%, 8/01/18 8/08 at 102.00 N/R 981,830
2,765 5.700%, 8/01/28 8/08 at 102.00 N/R 2,473,956
1,250 Coronado Community Development Agency, California, Tax 9/15 at 100.00 AAA 1,174,475
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 3,099,757
California, Special Tax Bonds, Community Facilities District 98-1,
Series 2003, 5.500%, 9/01/33 - MBIA Insured
1,930 Fresno, California, Certificates of Participation, Street 6/08 at 100.00 A+ 1,946,444
Improvement Project, Series 1991, 6.625%, 12/01/11
Golden State Tobacco Securitization Corporation, California,
Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A,
Trust 2215-1:
1,885 9.467%, 6/01/38 - FGIC Insured (IF) 6/15 at 100.00 A2 1,290,207
1,320 9.467%, 6/01/45 - FGIC Insured (IF) 6/15 at 100.00 AAA 841,447
9,500 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 A 8,807,165
Tobacco Settlement Asset-Backed Revenue Bonds,
Series 2005A, 5.000%, 6/01/35 - FGIC Insured
Irvine, California, Unified School District, Community Facilities
District Special Tax Bonds, Series 2006A:
335 5.000%, 9/01/26 9/16 at 100.00 N/R 293,952
775 5.125%, 9/01/36 9/16 at 100.00 N/R 659,176
3,245 Los Angeles Community Redevelopment Agency, California, 9/15 at 100.00 Aaa 2,948,115
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- 1,298,849
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 5,160,158
California, Proposition A First Tier Senior Sales Tax Revenue
Bonds, Series 2003A, 5.000%, 7/01/16 - FSA Insured
6,230 Los Angeles, California, Municipal Improvement Corporation, 1/17 at 100.00 AA- 5,989,522
Lease Revenue Bonds, Police Headquarters, Series 2006A,
5.000%, 1/01/25 - FGIC Insured
15,300 Ontario Redevelopment Financing Authority, San Bernardino No Opt. Call AAA 18,561,806
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 1,111,570
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 1,572,855
1,500 5.000%, 9/01/20 - MBIA Insured 9/13 at 100.00 AAA 1,508,955
600 Rialto Redevelopment Agency, California, Tax Allocation Bonds, 9/15 at 100.00 A- 556,116
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 4,271,184
Tax Allocation Bonds, Series 2003A, 5.250%, 9/01/22 -
MBIA Insured
2,000 Rohnert Park Community Development Commission, California, 8/17 at 100.00 A 1,871,500
Redevelopment Project Tax Allocation Bonds, Series 2007R,
5.000%, 8/01/37 - FGIC Insured
745 Roseville, California, Certificates of Participation, Public 8/13 at 100.00 AAA 717,614
Facilities, Series 2003A, 5.000%, 8/01/25 - AMBAC Insured
8,625 Sacramento City Financing Authority, California, Capital 12/16 at 100.00 AAA 7,981,489
Improvement Revenue Bonds, 300 Richards Boulevard,
Series 2006C, 5.000%, 12/01/36 - AMBAC Insured
51
NUC
Nuveen California Quality Income Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS February 29, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 2,500 San Jose Financing Authority, California, Lease Revenue Refunding 9/11 at 100.00 AAA $ 2,517,950
Bonds, Convention Center Project, Series 2001F, 5.000%, 9/01/20 -
MBIA Insured
2,770 Santa Ana Community Redevelopment Agency, Orange County, 9/13 at 100.00 A 2,782,825
California, Tax Allocation Refunding Bonds, South Main Street
Redevelopment, Series 2003B, 5.000%, 9/01/19 - FGIC Insured
2,090 Washington Unified School District, Yolo County, California, 8/17 at 100.00 AAA 1,956,094
Certificates of Participation, Series 2007, 5.125%, 8/01/37 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
102,095 Total Tax Obligation/Limited 101,988,631
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 14.0% (8.8% OF TOTAL INVESTMENTS)
3,950 Bay Area Toll Authority, California, Revenue Bonds, San Francisco 4/16 at 100.00 AA 3,808,314
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- 9,571,430
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 2,011,820
Revenue Bonds, 91 Express Lanes Project, Series 2003A,
5.000%, 8/15/20 - AMBAC Insured
2,685 Sacramento County, California, Airport System Revenue Bonds, 7/12 at 100.00 AAA 2,744,929
Series 2002A, 5.250%, 7/01/21 - FSA Insured
20,000 San Francisco Airports Commission, California, Revenue Bonds, 5/10 at 101.00 AAA 20,078,996
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 1,499,950
3,865 5.250%, 5/01/19 - MBIA Insured (Alternative Minimum Tax) 5/12 at 100.00 AAA 3,869,445
------------------------------------------------------------------------------------------------------------------------------------
44,980 Total Transportation 43,584,884
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 50.3% (31.4% OF TOTAL INVESTMENTS) (4)
7,325 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 N/R (4) 7,854,817
Settlement Asset-Backed Bonds, Sonoma County Tobacco
Funding Corporation, Series 2002B, 5.500%, 6/01/30
(Pre-refunded 6/01/12)
9,000 California Department of Water Resources, Power Supply Revenue 5/12 at 101.00 Aaa 9,749,340
Bonds, Series 2002A, 5.125%, 5/01/18 (Pre-refunded 5/01/12)
6,190 California Educational Facilities Authority, Revenue Bonds, 11/10 at 100.00 Aaa 6,642,180
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 N/R (4) 11,087,751
7,700 6.250%, 12/01/34 (Pre-refunded 12/01/09) 12/09 at 101.00 N/R (4) 8,225,602
8,000 California Pollution Control Financing Authority, Solid Waste 7/08 at 100.00 Aaa 9,297,200
Disposal Revenue Bonds, North County Recycling Center,
Series 1991A, 6.750%, 7/01/17 (ETM)
1,965 California State, General Obligation Bonds, Series 2002, 4/12 at 100.00 A+ (4) 2,118,584
5.250%, 4/01/32 (Pre-refunded 4/01/12)
1,515 California Statewide Community Development Authority, 10/13 at 101.00 Aaa 1,667,439
Water and Wastewater Revenue Bonds, Pooled Financing
Program, Series 2004A, 5.250%, 10/01/24 (Pre-refunded
10/01/13) - FSA Insured
California, General Obligation Bonds, Series 2000:
315 5.500%, 6/01/25 (Pre-refunded 6/01/10) 6/10 at 100.00 Aaa 333,387
1,105 5.500%, 6/01/25 (Pre-refunded 6/01/10) 6/10 at 100.00 Aaa 1,169,499
2,500 California, General Obligation Bonds, Series 2004, 5.125%, 2/01/27 2/14 at 100.00 A+ (4) 2,701,925
(Pre-refunded 2/01/14)
4,440 Coast Community College District, Orange County, California, 8/13 at 100.00 AAA 4,771,446
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, California, 9/13 at 100.00 AAA 1,772,398
General Obligation Bonds, Series 2003A, 5.375%, 9/01/19
(Pre-refunded 9/01/13) - MBIA Insured
52
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 12,805 Contra Costa County, California, GNMA Mortgage-Backed Securities No Opt. Call AAA $ 16,568,389
Program Home Mortgage Revenue Bonds, Series 1988,
8.250%, 6/01/21 (Alternative Minimum Tax) (ETM)
3,000 Daly City Housing Development Finance Agency, California, 12/13 at 102.00 A- (4) 3,413,370
Mobile Home Park Revenue Bonds, Franciscan Mobile Home
Park Project, Series 2002A, 5.850%, 12/15/32
(Pre-refunded 12/15/13)
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 5,423,250
2,500 5.625%, 6/01/38 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 2,711,625
8,000 Los Angeles County Metropolitan Transportation Authority, 7/10 at 101.00 AA (4) 8,503,200
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 AA- (4) 2,112,700
Obligation Bonds, Series 2000D, 5.375%, 7/01/25
(Pre-refunded 7/01/10) - FGIC Insured
3,005 Monterey County, California, Certificates of Participation, 8/11 at 100.00 Aaa 3,188,756
Master Plan Financing, Series 2001, 5.000%, 8/01/20
(Pre-refunded 8/01/11) - MBIA Insured
2,375 Moreno Valley Unified School District, Riverside County, 8/14 at 100.00 AAA 2,594,996
California, General Obligation Bonds, Series 2004A,
5.250%, 8/01/24 (Pre-refunded 8/01/14) - FSA Insured
5,000 Puerto Rico Infrastructure Financing Authority, Special Obligation 10/10 at 101.00 AAA 5,187,600
Bonds, Series 2000A, 5.500%, 10/01/32
13,525 San Bernardino County, California, GNMA Mortgage-Backed No Opt. Call AAA 15,505,330
Securities Program Single Family Home Mortgage Revenue
Bonds, Series 1989A, 7.750%, 11/01/14 (Alternative
Minimum Tax) (ETM)
3,000 San Francisco Airports Commission, California, Revenue 5/12 at 100.00 AAA 3,238,050
Refunding Bonds, San Francisco International Airport, Second
Series 2002, Issue 28B, 5.250%, 5/01/22 (Pre-refunded 5/01/12) -
MBIA Insured
1,615 University of California, Certificates of Participation, San Diego 1/10 at 101.00 Aa1 (4) 1,704,455
and Sacramento Campus Projects, Series 2002A,
5.250%, 1/01/21 (Pre-refunded 1/01/10)
University of California, Revenue Bonds, Multi-Purpose Projects,
Series 2002O:
5,265 5.000%, 9/01/18 (Pre-refunded 9/01/10) - FGIC Insured 9/10 at 101.00 AA (4) 5,582,216
10,255 5.000%, 9/01/19 (Pre-refunded 9/01/10) - FGIC Insured 9/10 at 101.00 AA (4) 10,872,864
2,150 University of California, Revenue Bonds, Research Facilities, 9/09 at 101.00 AAA 2,241,655
Series 2001E, 5.000%, 9/01/24 (Pre-refunded 9/01/09) -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
141,565 Total U.S. Guaranteed 156,240,024
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 7.5% (4.7% OF TOTAL INVESTMENTS)
3,695 Long Beach Bond Finance Authority, California, Natural Gas No Opt. Call A1 3,094,156
Purchase Revenue Bonds, Series 2007A, 5.000%, 11/15/35
500 Los Angeles Department of Water and Power, California, Power 7/15 at 100.00 AAA 484,565
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 A- 1,152,737
Bonds, Series 2005, 5.125%, 9/01/31 - XLCA Insured
5,000 Merced Irrigation District, California, Revenue Certificates 9/13 at 102.00 Baa3 4,696,000
of Participation, Electric System Project, Series 2003,
5.700%, 9/01/36
1,200 Sacramento Municipal Utility District, California, Electric No Opt. Call A1 1,204,320
Revenue Bonds, Series 2004T, 5.250%, 5/15/23 - FGIC Insured
2,410 Sacramento Municipal Utility District, California, Electric Revenue 8/12 at 100.00 AAA 2,473,745
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 4,023,000
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 AA- 6,100,435
Multiple Projects, Series 1989, 6.750%, 7/01/11
------------------------------------------------------------------------------------------------------------------------------------
23,540 Total Utilities 23,228,958
------------------------------------------------------------------------------------------------------------------------------------
53
NUC
Nuveen California Quality Income Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS February 29, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 7.0% (4.4% OF TOTAL INVESTMENTS)
$ 5,525 California Statewide Community Development Authority, Water 10/13 at 101.00 AAA $ 5,601,466
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 1,018,540
1,440 5.250%, 12/01/21 - MBIA Insured 12/13 at 100.00 AAA 1,461,658
1,205 5.250%, 12/01/22 - MBIA Insured 12/13 at 100.00 AAA 1,215,014
850 Healdsburg Public Financing Authority, California, Wastewater 4/16 at 100.00 AAA 803,437
Revenue Bonds, Series 2006, 5.000%, 4/01/36 - MBIA Insured
1,250 Indio Water Authority, California, Water Revenue Bonds, 4/16 at 100.00 AAA 1,198,725
Series 2006, 5.000%, 4/01/31 - AMBAC Insured
500 Norco, California, Certificates of Participation Refunding, 10/08 at 102.00 AAA 484,825
Water and Sewerage System Improvement Project,
Series 1998, 5.125%, 10/01/28 - AMBAC Insured
1,380 Sacramento County Sanitation District Financing Authority, 6/16 at 100.00 AA 1,307,453
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 5,438,210
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 A 1,586,503
1,650 5.000%, 9/15/20 - FGIC Insured 9/13 at 100.00 A 1,659,868
------------------------------------------------------------------------------------------------------------------------------------
21,740 Total Water and Sewer 21,775,699
------------------------------------------------------------------------------------------------------------------------------------
$ 493,950 Total Investments (cost $497,349,762) - 160.2% 497,716,375
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (3.1)% (9,698,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.4% 7,672,908
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (59.5)% (5) (185,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 310,691,283
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices
of the earliest optional call or redemption. There may be
other call provisions at varying prices at later dates.
Certain mortgage-backed securities may be subject to
periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group
("Standard & Poor's") or Moody's Investor Service, Inc.
("Moody's") rating. Ratings below BBB by Standard & Poor's
or Baa by Moody's are considered to be below investment
grade.
The Portfolio of Investments reflects the ratings on certain
bonds insured by AMBAC, FGIC, MBIA and XLCA as of February
29, 2008. Subsequent to February 29, 2008, at least one
rating agency reduced the rating for AMBAC-insured bonds to
AA and at least one rating agency further reduced the
ratings for FGIC-insured and XLCA-insured bonds. As of
February 29, 2008, one or more rating agencies have placed
each of these insurers on "negative credit watch", which may
presage one or more rating reductions for such insurer or
insurers in the future. If one or more insurers' ratings are
reduced by these rating agencies, it would likely reduce the
effective rating of many of the bonds insured by that
insurer or insurers.
(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) Preferred Shares, at Liquidation Value as a percentage of
total investments is (37.2)%.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected
as a financing transaction pursuant to the provisions of
SFAS No. 140.
See accompanying notes to financial statements.
54
Statement of
ASSETS & LIABILITIES
February 29, 2008 (Unaudited)
CALIFORNIA
CALIFORNIA CALIFORNIA CALIFORNIA INVESTMENT CALIFORNIA CALIFORNIA
VALUE PERFORMANCE PLUS OPPORTUNITY QUALITY SELECT QUALITY QUALITY INCOME
(NCA) (NCP) (NCO) (NQC) (NVC) (NUC)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value
(cost $254,902,736,
$289,348,704, $183,773,458,
$304,007,925, $520,821,170
and $497,349,762,
respectively) $253,618,827 $283,278,272 $181,183,962 $298,307,328 $511,842,402 $497,716,375
Cash -- 894,010 663,912 7,068,088 2,484,401 --
Receivables:
Interest 3,211,557 4,180,217 2,125,191 4,736,585 7,242,251 7,687,031
Investments sold 4,302,048 -- -- -- -- 2,836,835
Other assets 12,820 24,869 4,108 27,795 55,439 45,498
------------------------------------------------------------------------------------------------------------------------------------
Total assets 261,145,252 288,377,368 183,977,173 310,139,796 521,624,493 508,285,739
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 515,263 -- -- -- -- 1,295,515
Floating rate obligations 20,421,000 4,258,000 3,536,000 9,170,000 10,096,000 9,698,000
Accrued expenses:
Management fees 111,947 147,453 94,696 155,915 262,200 254,973
Other 61,404 65,475 21,276 67,385 121,155 103,156
Common Shares dividends payable 814,933 629,392 420,610 702,054 1,174,849 1,160,213
Preferred share dividends payable N/A 88,158 33,506 46,905 42,964 82,599
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 21,924,547 5,188,478 4,106,088 10,142,259 11,697,168 12,594,456
------------------------------------------------------------------------------------------------------------------------------------
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 $239,220,705 $177,188,890 $111,871,085 $187,997,537 $317,927,325 $310,691,283
====================================================================================================================================
Common shares outstanding 25,241,808 12,965,742 8,168,248 13,580,232 23,129,870 22,020,090
====================================================================================================================================
Net asset value per Common
share outstanding (net
assets applicable to Common
shares, divided by
Common shares
outstanding) $ 9.48 $ 13.67 $ 13.70 $ 13.84 $ 13.75 $ 14.11
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01
par value per share $ 252,418 $ 129,657 $ 81,682 $ 135,802 $ 231,299 $ 220,201
Paid-in surplus 237,576,622 181,322,684 113,901,601 189,659,207 322,552,272 306,793,398
Undistributed
(Over-distribution of)
net investment income 64,140 101,725 (23,897) 10,767 (258,234) (741,068)
Accumulated net realized
gain (loss) from
investments and
derivative
transactions 2,611,434 1,705,256 501,195 3,892,358 4,380,756 4,052,139
Net unrealized
appreciation (depreciation)
of investments and
derivative transactions (1,283,909) (6,070,432) (2,589,496) (5,700,597) (8,978,768) 366,613
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable
to Common shares $239,220,705 $177,188,890 $111,871,085 $187,997,537 $317,927,325 $310,691,283
====================================================================================================================================
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
Six Months Ended February 29, 2008 (Unaudited)
CALIFORNIA
CALIFORNIA CALIFORNIA CALIFORNIA INVESTMENT CALIFORNIA CALIFORNIA
VALUE PERFORMANCE PLUS OPPORTUNITY QUALITY SELECT QUALITY QUALITY INCOME
(NCA) (NCP) (NCO) (NQC) (NVC) (NUC)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 6,650,793 $ 7,581,928 $ 4,930,754 $ 8,065,609 $ 13,742,105 $ 13,401,782
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 688,984 931,036 598,682 980,057 1,650,826 1,598,248
Preferred shares - auction fees -- 132,137 84,767 139,616 239,343 230,616
Preferred shares - dividend
disbursing agent fees -- 14,909 9,927 9,927 14,916 14,893
Shareholders' servicing agent
fees and expenses 15,803 9,608 6,002 8,825 12,069 9,517
Interest expense on
floating rate obligations 82,669 70,873 58,856 153,030 168,045 161,420
Custodian's fees and expenses 38,076 41,928 24,269 34,341 62,740 60,141
Directors' fees and expenses 2,680 4,974 2,425 3,968 8,065 5,356
Professional fees 8,317 12,944 11,893 10,190 11,301 13,493
Shareholders' reports - printing
and mailing expenses 22,724 17,800 9,732 18,141 27,125 25,320
Stock exchange listing fees 4,799 4,799 4,803 4,799 4,799 4,799
Investor relations expense 10,406 10,824 6,978 11,285 18,703 18,113
Other expenses 6,489 15,562 13,066 15,636 20,229 25,887
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian
fee credit 880,947 1,267,394 831,400 1,389,815 2,238,161 2,167,803
Custodian fee credit (12,049) (13,979) (6,916) (3,008) (13,266) (6,835)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 868,898 1,253,415 824,484 1,386,807 2,224,895 2,160,968
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 5,781,895 6,328,513 4,106,270 6,678,802 11,517,210 11,240,814
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments 1,116,478 1,510,449 211,392 2,154,438 943,912 395,872
Forward swaps 1,544,426 481,957 319,511 1,916,826 3,564,177 3,851,151
Change in net unrealized
appreciation (depreciation) of:
Investments (11,621,315) (14,955,325) (9,599,577) (16,145,885) (25,523,861) (20,934,370)
Forward swaps (642,663) (146,052) 1,358 (579,016) (1,075,627) (1,162,220)
------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) (9,603,074) (13,108,971) (9,067,316) (12,653,637) (22,091,399) (17,849,567)
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income N/A (1,661,714) (1,113,679) (1,854,341) (3,028,614) (3,495,889)
From accumulated net realized gains N/A (348,912) (215,479) (59,134) (410,088) --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Preferred shareholders N/A (2,010,626) (1,329,158) (1,913,475) (3,438,702) (3,495,889)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations $ (3,821,179) $ (8,791,084) $(6,290,204) $ (7,888,310) $(14,012,891) $(10,104,642)
====================================================================================================================================
N/A - Fund is not authorized to issue Preferred shares.
See accompanying notes to financial statements.
56
Statement of
CHANGES in NET ASSETS (Unaudited)
CALIFORNIA
CALIFORNIA VALUE (NCA) PERFORMANCE PLUS (NCP) CALIFORNIA OPPORTUNITY (NCO)
------------------------------ ---------------------------- --------------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
2/29/08 8/31/07 2/29/08 8/31/07 2/29/08 8/31/07
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 5,781,895 $ 11,458,806 $ 6,328,513 $ 12,506,724 $ 4,106,270 $ 8,093,150
Net realized gain (loss) from:
Investments 1,116,478 285,881 1,510,449 707,835 211,392 1,377,217
Forward swaps 1,544,426 116,800 481,957 731,300 319,511 (85,714)
Change in net unrealized
appreciation (depreciation) of:
Investments (11,621,315) (6,426,708) (14,955,325) (8,786,247) (9,599,577) (6,864,917)
Forward swaps (642,663) (56,964) (146,052) (556,393) 1,358 (1,358)
Distributions to
Preferred Shareholders:
From net investment income N/A N/A (1,661,714) (3,344,706) (1,113,679) (2,275,505)
From accumulated net
realized gains N/A N/A (348,912) (208,558) (215,479) --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations (3,821,179) 5,377,815 (8,791,084) 1,049,955 (6,290,204) 242,873
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (5,527,958) (11,512,039) (4,522,450) (9,259,482) (2,958,541) (6,489,586)
From accumulated net
realized gains (451,828) (712,571) (963,355) (683,961) (607,718) --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable
to Common shares from
distributions to Common
shareholders (5,979,786) (12,224,610) (5,485,805) (9,943,443) (3,566,259) (6,489,586)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions -- -- -- -- -- 182,321
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
capital share transactions -- -- -- -- -- 182,321
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (9,800,965) (6,846,795) (14,276,889) (8,893,488) (9,856,463) (6,064,392)
Net assets applicable to Common
shares at the beginning
of period 249,021,670 255,868,465 191,465,779 200,359,267 121,727,548 127,791,940
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to
Common shares at the
end of period $239,220,705 $249,021,670 $177,188,890 $191,465,779 $111,871,085 $121,727,548
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at
the end of period $ 64,140 $ (189,797) $ 101,725 $ (42,624) $ (23,897) $ (57,947)
====================================================================================================================================
N/A - Fund is not authorized to issue Preferred shares.
See accompanying notes to financial statements.
57
Statement of
CHANGES in NET ASSETS (continued) (Unaudited)
CALIFORNIA CALIFORNIA CALIFORNIA
INVESTMENT QUALITY (NQC) SELECT QUALITY (NVC) QUALITY INCOME (NUC)
------------------------------ ---------------------------- --------------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
2/29/08 8/31/07 2/29/08 8/31/07 2/29/08 8/31/07
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 6,678,802 $ 13,162,184 $ 11,517,210 $ 22,553,630 $ 11,240,814 $ 22,166,977
Net realized gain (loss) from:
Investments 2,154,438 14,246 943,912 607,991 395,872 (86,120)
Forward swaps 1,916,826 55,300 3,564,177 802,400 3,851,151 (35,100)
Change in net unrealized
appreciation (depreciation) of:
Investments (16,145,885) (8,137,893) (25,523,861) (15,805,336) (20,934,370) (12,873,328)
Forward swaps (579,016) (117,109) (1,075,627) (424,362) (1,162,220) (28,727)
Distributions to
Preferred Shareholders:
From net investment income (1,854,341) (3,463,790) (3,028,614) (6,274,053) (3,495,889) (6,134,827)
From accumulated net
realized gains (59,134) (261,799) (410,088) (290,571) -- (175,677)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations (7,888,310) 1,251,139 (14,012,891) 1,169,699 (10,104,642) 2,833,198
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (5,017,896) (9,533,321) (8,049,197) (17,364,648) (7,960,263) (16,895,802)
From accumulated net
realized gains (162,963) (893,572) (1,112,547) (1,062,552) -- (592,043)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable
to Common shares from
distributions to Common
shareholders (5,180,859) (10,426,893) (9,161,744) (18,427,200) (7,960,263) (17,487,845)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions -- -- -- 228,521 -- 315,124
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
capital share transactions -- -- -- 228,521 -- 315,124
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets applicable
to Common shares (13,069,169) (9,175,754) (23,174,635) (17,028,980) (18,064,905) (14,339,523)
Net assets applicable to Common
shares at the beginning
of period 201,066,706 210,242,460 341,101,960 358,130,940 328,756,188 343,095,711
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to
Common shares at the
end of period $187,997,537 $201,066,706 $317,927,325 $341,101,960 $310,691,283 $328,756,188
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the end
of period $ 10,767 $ 204,202 $ (258,234) $ (697,633) $ (741,068) $ (525,730)
====================================================================================================================================
See accompanying notes to financial statements.
58
Notes to
FINANCIAL STATEMENTS (Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
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)
(collectively, the "Funds"). 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 may establish 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
market quotes provided by major broker/dealers in such investments. If it is
determined that the market price for an investment or derivative instrument is
unavailable or inappropriate, the Board of Directors of the Funds, or its
designee, may establish fair value in accordance with procedures established in
good faith by the Board of Directors. 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/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 February 29, 2008, 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.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute substantially all of its 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. Net realized capital gains and ordinary income distributions paid
by the Funds are subject to federal taxation.
59
Notes to
FINANCIAL STATEMENTS (continued) (Unaudited)
Effective February 29, 2008, the Funds adopted Financial Accounting Standards
Board (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 affirmative evaluation of tax positions taken or
expected to be taken in the course of preparing the Funds' tax returns to
determine whether it is "more-likely-than-not" (i.e., greater than 50-percent
likelihood) of being sustained by the applicable tax authority. Tax positions
not deemed to meet the more-likely-than-not threshold may result in a tax
benefit or expense in the current year.
Implementation of FIN 48 required management of the Funds to analyze all open
tax years, as defined by the statute of limitations, for all major
jurisdictions, which includes federal and certain states. Open tax years are
those that are open for examination by taxing authorities (i.e., generally the
last four tax year ends and the interim tax period since then). The Funds have
no examinations in progress.
For all open tax years and all major taxing jurisdictions through the end of the
reporting period, management of the Funds has reviewed all tax positions taken
or expected to be taken in the preparation of the Funds' tax returns and
concluded the adoption of FIN 48 resulted in no impact to the Funds' net assets
or results of operations as of and during the six months ended February 29,
2008.
The Funds are also not aware of any tax positions for which it is reasonably
possible that the total amounts of unrecognized tax benefits will significantly
change in the next twelve months.
Dividends and Distributions to Common Shareholders
Dividends from tax-exempt net investment income are declared monthly. Net
realized capital gains and/or market discount from investment transactions, if
any, are distributed to shareholders not less frequently than annually.
Furthermore, capital gains are distributed only to the extent they exceed
available capital loss carryforwards.
Distributions to Common shareholders of tax-exempt net investment income, net
realized capital gains and/or market discount, if any, are recorded on the
ex-dividend date. The amount and timing of distributions are determined in
accordance with federal income tax regulations, which may differ from U.S.
generally accepted accounting principles.
Preferred Shares
California Value (NCA) is not authorized to issue Preferred shares. The Funds
below have issued and outstanding Preferred shares, $25,000 stated value per
share, as a means of effecting financial leverage. Each Fund's Preferred shares
are issued in more than one Series. The dividend rate paid by the Funds on each
Series is determined every seven days, pursuant to a dutch auction process
overseen by the auction agent, and is payable at the end of each rate period.
The number of Preferred shares outstanding, by Series and in total, for each
Fund is as follows:
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
PERFORMANCE CALIFORNIA INVESTMENT SELECT QUALITY
PLUS OPPORTUNITY QUALITY QUALITY INCOME
(NCP) (NCO) (NQC) (NVC) (NUC)
------------------------------------------------------------------------------------------------------------------
Number of shares:
Series M -- -- 3,600 -- 1,400
Series T 1,800 -- -- 2,400 --
Series W 640 2,200 880 1,680 3,000
Series TH -- -- -- 3,600 --
Series F 1,800 520 -- -- 3,000
------------------------------------------------------------------------------------------------------------------
Total 4,240 2,720 4,480 7,680 7,400
==================================================================================================================
60
Inverse Floating Rate Securities
Each Fund may invest in inverse floating rate securities. An inverse floating
rate security is created by depositing a municipal bond, typically with a fixed
interest rate, into a special purpose trust created by a broker-dealer. In turn,
this trust (a) issues floating rate certificates, in face amounts equal to some
fraction of the deposited bond's par amount or market value, that typically pay
short-term tax-exempt interest rates to third parties, and (b) issues to a
long-term investor (such as one of the Funds) an inverse floating rate
certificate (sometimes referred to as an "inverse floater") that represents all
remaining or residual interest in the trust. The income received by the inverse
floater holder varies inversely with the short-term rate paid to the floating
rate certificates' holders, and in most circumstances the inverse floater holder
bears substantially all of the underlying bond's downside investment risk and
also benefits disproportionately from any potential appreciation of the
underlying bond's value. The price of an inverse floating rate security will be
more volatile than that of the underlying bond because the interest rate is
dependent on not only the fixed coupon rate of the underlying bond but also on
the short-term interest paid on the floating rate certificates, and because the
inverse floating rate security essentially bears the risk of loss of the greater
face value of the underlying bond.
A Fund may purchase an inverse floating rate security in a secondary market
transaction without first owning the underlying bond (referred to as an
"externally-deposited inverse floater"), or instead by first selling a
fixed-rate bond to a broker-dealer for deposit into the special purpose trust
and receiving in turn the residual interest in the trust (referred to as a
"self-deposited inverse floater"). A Fund may also enter into shortfall and
forbearance agreements (sometimes referred to as a "recourse trust" or "credit
recovery swap") with a broker-dealer by which a Fund agrees to reimburse the
broker-dealer, in certain circumstances, for the difference between the
liquidation value of the fixed-rate bond held by the trust and the liquidation
value of the floating rate certificates, as well as any shortfalls in interest
cash flows. The inverse floater held by a Fund gives the Fund the right (a) to
cause the holders of the floating rate certificates to tender their notes at
par, and (b) to have the broker transfer the fixed-rate bond held by the trust
to the Fund, thereby collapsing the trust. An investment in an
externally-deposited inverse floater is identified in the Portfolio of
Investments as an "Inverse floating rate investment". An investment in a
self-deposited inverse floater, recourse trust or credit recovery swap is
accounted for as a financing transaction in accordance with Statement of
Financial Accounting Standards (SFAS) No. 140 "Accounting for Transfers and
Servicing of Financial Assets and Extinguishment of Liabilities". In such
instances, a fixed-rate bond deposited into a special purpose trust is
identified in the Portfolio of Investments as an "Underlying bond of an inverse
floating rate trust", with the Fund accounting for the short-term floating rate
certificates issued by the trust as "Floating rate obligations" on the Statement
of Assets and Liabilities. In addition, the Fund reflects in Investment Income
the entire earnings of the underlying bond and accounts for the related interest
paid to the holders of the short-term floating rate certificates as "Interest
expense on floating rate obligations" in the Statement of Operations.
During the six months ended February 29, 2008, each Fund invested in externally
deposited inverse floaters and/or self-deposited inverse floaters.
The average floating rate obligations outstanding and average annual interest
rate and fees related to self-deposited inverse floaters during the six months
ended February 29, 2008, 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)
------------------------------------------------------------------------------------------------------------------
Average floating rate obligations $5,056,879 $4,258,000 $3,536,000 $9,170,000 $10,096,000 $9,698,000
Average annual interest rate and fees 3.29% 3.35% 3.35% 3.36% 3.35% 3.35%
==================================================================================================================
61
Notes to
FINANCIAL STATEMENTS (continued) (Unaudited)
Forward Swap Transactions
Each Fund is authorized to invest in forward interest rate swap transactions.
Each Fund's 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.
Zero Coupon Securities
Each Fund is authorized to invest in zero coupon securities. A zero coupon
security does not pay a regular interest coupon to its holders during the life
of the security. Tax-exempt income to the holder of the security comes from
accretion of the difference between the original purchase price of the security
at issuance and the par value of the security at maturity and is effectively
paid at maturity. Such securities are included in the Portfolios of Investments
with a 0.000% coupon rate in their description. The market prices of zero coupon
securities generally are more volatile than the market prices of securities that
pay interest periodically.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by net credits earned on each Fund's cash on
deposit with the bank. Such deposit arrangements are an alternative to overnight
investments. Credits for cash balances may be offset by charges for any days on
which the Fund overdraws its account at the custodian bank.
Indemnifications
Under the Funds' organizational documents, their Officers and Directors are
indemnified against certain liabilities arising out of the performance of their
duties to the Funds. In addition, in the normal course of business, the Funds
enter into contracts that provide general indemnifications to other parties. The
Funds' maximum exposure under these arrangements is unknown as this would
involve future claims that may be made against the Funds that have not yet
occurred. However, the Funds have not had prior claims or losses pursuant to
these contracts and expect the risk of loss to be remote.
Use of Estimates
The preparation of financial statements in conformity with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of increases and
decreases in net assets applicable to Common shares from operations during the
reporting period. Actual results may differ from those estimates.
62
2. FUND SHARES
Transactions in Common shares were as follows:
CALIFORNIA CALIFORNIA CALIFORNIA
VALUE (NCA) PERFORMANCE PLUS (NCP) OPPORTUNITY (NCO)
----------------------- ----------------------- -----------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
2/29/08 8/31/07 2/29/08 8/31/07 2/29/08 8/31/07
-----------------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due to
reinvestment of distributions -- -- -- -- -- 11,448
=================================================================================================================
CALIFORNIA CALIFORNIA CALIFORNIA
INVESTMENT QUALITY (NQC) SELECT QUALITY (NVC) QUALITY INCOME (NUC)
------------------------ ----------------------- -----------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
2/29/08 8/31/07 2/29/08 8/31/07 2/29/08 8/31/07
-----------------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due to
reinvestment of distributions -- -- -- 15,014 -- 20,362
=================================================================================================================
3. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities but excluding short-term investments
and derivative transactions) during the six months ended February 29, 2008, 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 $26,696,535 $25,501,045 $10,987,395 $43,256,341 $49,204,350 $41,462,193
Sales and maturities 13,928,269 27,301,540 13,079,823 49,406,272 50,629,714 40,677,506
==================================================================================================================
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 loses, timing differences in
recognizing taxable market discount, timing differences in recognizing certain
gains and losses on investment transactions and the treatment of investments in
inverse floating rate transactions subject to SFAS No. 140. To the extent that
differences arise that are permanent in nature, such amounts are reclassified
within the capital accounts on the Statement of Assets and Liabilities presented
in the annual report, based on their federal tax basis treatment; temporary
differences do not require reclassification. Temporary and permanent differences
do not impact the net asset values of the Funds.
At February 29, 2008, the cost of investments was as follows:
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
CALIFORNIA PERFORMANCE CALIFORNIA INVESTMENT SELECT QUALITY
VALUE PLUS OPPORTUNITY QUALITY QUALITY INCOME
(NCA) (NCP) (NCO) (NQC) (NVC) (NUC)
----------------------------------------------------------------------------------------------------------------------
Cost of investments $234,420,555 $285,117,970 $180,206,329 $294,891,952 $510,887,069 $487,747,409
======================================================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at February 29, 2008, 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 $ 9,351,287 $ 6,283,700 $ 5,373,839 $ 5,795,142 $ 14,022,985 $ 17,177,862
Depreciation (10,572,853) (12,381,117) (7,932,403) (11,551,192) (23,163,915) (16,907,478)
---------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation
(depreciation) of investments $ (1,221,566) $ (6,097,417) $(2,558,564) $ (5,756,050) $ (9,140,930) $ 270,384
===========================================================================================================================
63
Notes to
FINANCIAL STATEMENTS (continued) (Unaudited)
The tax components of undistributed net tax-exempt income, net ordinary income
and net long-term capital gains at August 31, 2007, the Funds' last 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 * $669,390 $ 503,111 $267,304 $656,393 $ 648,990 $804,231
Undistributed net ordinary income ** 2,895 120,842 156,498 258,241 -- 44,293
Undistributed net long-term capital gains 401,924 1,184,099 793,489 208,950 1,643,621 729
==============================================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on August 1, 2007, paid on September 4, 2007.
** 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 Funds' last tax year ended
August 31, 2007, 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
(NCA) (NCP) (NCO) (NQC) (NVC) (NUC)
-------------------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $11,560,751 $12,586,202 $8,568,752 $13,020,096 $23,676,926 $22,977,178
Distributions from net ordinary income ** 1,772 81,182 237,458 82,870 118,707 76,734
Distributions from net long-term
capital gains 712,571 813,872 -- 1,072,501 1,353,123 767,720
===============================================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
California Quality Income (NUC) elected to defer net realized losses from
investments incurred from November 1, 2006, through August 31, 2007, the Funds'
last tax year-end, ("post-October losses") in accordance with federal income tax
regulations. Post-October losses of $36,885 were treated as having arisen on the
first day of the current taxable year.
5. MANAGEMENT FEES 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, and for California Value
(NCA) a gross interest income component. 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 (excluding interest on bonds underlying a "self-deposited
inverse floater" trust that is attributed to the Fund over and above the net
interest earned on the inverse floater itself) of the Fund.
64
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 February 29, 2008, the complex level fee rate was .1869%.
Effective August 20, 2007, the complex-level fee schedule is as follows:
COMPLEX-LEVEL ASSET BREAKPOINT LEVEL (1) EFFECTIVE RATE AT BREAKPOINT LEVEL
--------------------------------------------------------------------------------
$55 billion .2000%
$56 billion .1996
$57 billion .1989
$60 billion .1961
$63 billion .1931
$66 billion .1900
$71 billion .1851
$76 billion .1806
$80 billion .1773
$91 billion .1691
$125 billion .1599
$200 billion .1505
$250 billion .1469
$300 billion .1445
================================================================================
(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
preferred stock issued by or borrowings by the Nuveen funds) of
Nuveen-sponsored funds in the U.S.
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.
Agreement and Plan of Merger
On June 20, 2007, Nuveen Investments announced that it had entered into a
definitive Agreement and Plan of Merger ("Merger Agreement") with Windy City
Investments, Inc. ("Windy City"), a corporation formed by investors led by
Madison Dearborn Partners, LLC ("Madison Dearborn"), pursuant to which Windy
City would acquire Nuveen Investments. Madison Dearborn is a private equity
investment firm based in Chicago, Illinois. The merger was consummated on
November 13, 2007.
65
Notes to
FINANCIAL STATEMENTS (continued) (Unaudited)
The consummation of the merger was deemed to be an "assignment" (as that term is
defined in the Investment Company Act of 1940) of the investment management
agreement between each Fund and the Adviser, and resulted in the automatic
termination of each Fund's agreement. The Board of Directors of each Fund
considered and approved a new investment management agreement with the Adviser
on the same terms as the previous agreements. Each new ongoing agreement was
approved by the shareholders of each Fund and took effect on November 13, 2007.
The investors led by Madison Dearborn include an affiliate of Merrill Lynch. As
a result, Merrill Lynch is an indirect "affiliated person" (as that term is
defined in the Investment Company Act of 1940) of each Fund. Certain conflicts
of interest may arise as a result of such indirect affiliation. For example, the
Funds are generally prohibited from entering into principal transactions with
Merrill Lynch and its affiliates. The Adviser does not believe that any such
prohibitions or limitations as a result of Merrill Lynch's affiliation will
significantly impact the ability of the Funds to pursue their investment
objectives and policies.
6. NEW ACCOUNTING PRONOUNCEMENTS
Financial Accounting Standards Board Statement of Financial Accounting
Standards No. 157
In September 2006, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards (SFAS) No. 157, "Fair Value
Measurements." This standard establishes a single authoritative definition of
fair value, sets out a framework for measuring fair value and requires
additional disclosures about fair value measurements. SFAS No. 157 applies to
fair value measurements already required or permitted by existing standards.
SFAS No. 157 is effective for financial statements issued for fiscal years
beginning after November 15, 2007, and interim periods within those fiscal
years. The changes to current generally accepted accounting principles from the
application of this standard relate to the definition of fair value, the methods
used to measure fair value, and the expanded disclosures about fair value
measurements. As of February 29, 2008, management does not believe the adoption
of SFAS No. 157 will impact the financial statement amounts; however, additional
disclosures may be required about the inputs used to develop the measurements
and the effect of certain of the measurements included within the Statement of
Operations for the period.
Financial Accounting Standards Board Statement of Financial Accounting
Standards No. 161
In March 2008, the FASB issued SFAS No. 161, "Disclosures about Derivative
Instruments and Hedging Activities." This standard is intended to enhance
financial statement disclosures for derivative instruments and hedging
activities and enable investors to understand: a) how and why a fund uses
derivative instruments, b) how derivative instruments and related hedge items
are accounted for, and c) how derivative instruments and related hedge items
affect a fund's financial position, results of operations and cash flows. SFAS
No. 161 is effective for financial statements issued for fiscal years beginning
after November 15, 2008, and interim periods within those fiscal years. As of
February 29, 2008, management does not believe the adoption of SFAS No. 161 will
impact the financial statement amounts; however, additional footnote disclosures
may be required about the use of derivative instruments and hedging items.
7. SUBSEQUENT EVENTS
Auction Rate Preferred Markets
Beginning in February 2008, more shares for sale were submitted in the regularly
scheduled auctions for the Preferred shares issued by the Funds (excluding
California Value (NCA)) than there were offers to buy. This meant that these
auctions "failed to clear," and that many Preferred shareholders who wanted to
sell their shares in these auctions were unable to do so. Preferred shareholders
unable to sell their shares received distributions at the "maximum rate"
calculated in accordance with the pre-established terms of the Preferred shares.
66
These developments generally do not affect the management or investment policies
of the Funds. However, one implication of these auction failures for Common
shareholders is that the Funds' cost of leverage will be higher than it
otherwise would have been had the auctions continued to be successful. As a
result, the Funds' future Common share earnings may be lower than they otherwise
would have been.
Distributions to Common Shareholders
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on April 1, 2008, to shareholders of record on
March 15, 2008, 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 $.0365 $.0565 $.0575 $.0585 $.0580 $.0595
==================================================================================================================
67
Financial
HIGHLIGHTS (Unaudited)
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:
2008(b) $ 9.87 $ .23 $ (.38) N/A N/A $ (.15) $(.22) $(.02) $ (.24)
2007 10.14 .45 (.23) N/A N/A .22 (.46) (.03) (.49)
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)
CALIFORNIA PERFORMANCE
PLUS (NCP)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2008(b) 14.77 .49 (1.01) (.13) (.03) (.68) (.35) (.07) (.42)
2007 15.45 .96 (.60) (.26) (.02) .08 (.71) (.05) (.76)
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)
====================================================================================================================================
Total Returns
--------------------
Based
Ending on
Common Based Common
Share Ending on Share Net
Net Asset Market Market Asset
Value Value Value* Value*
================================================================
CALIFORNIA VALUE (NCA)
----------------------------------------------------------------
Year Ended 8/31:
2008(b) $ 9.48 $ 9.27 (1.47)% (1.63)%
2007 9.87 9.65 4.74 2.11
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
CALIFORNIA PERFORMANCE PLUS (NCP)
----------------------------------------------------------------
Year Ended 8/31:
2008(b) 13.67 12.86 (5.70) (4.76)
2007 14.77 14.07 3.21 .49
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
================================================================
Ratios/Supplemental Data
------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets Ratios to Average Net Assets
Applicable to Common Shares Applicable to Common Shares
Before Credit After Credit**
------------------------------------------- ------------------------------------------
Ending
Net
Assets
Applicable Expenses Expenses Net Expenses Expenses Net Portfolio
to Common Including Excluding Investment Including Excluding Investment Turnover
Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate
====================================================================================================================================
CALIFORNIA
VALUE (NCA)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2008(b) $239,221 .70%*** .64%*** 4.60%*** .69%*** .63%*** 4.61%*** 5%
2007 249,022 .65 .62 4.49 .64 .61 4.51 8
2006 255,868 .64 .64 4.51 .63 .63 4.52 20
2005 260,782 .63 .63 4.54 .63 .63 4.54 4
2004 257,550 .65 .65 4.70 .65 .65 4.70 28
2003 250,749 .66 .66 4.84 .66 .66 4.85 24
CALIFORNIA PERFORMANCE
PLUS (NCP)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2008(b) 177,189 1.31*** 1.24*** 6.54*** 1.30*** 1.23*** 6.56*** 9
2007 191,466 1.30 1.22 6.28 1.28 1.20 6.30 18
2006 200,359 1.23 1.23 6.28 1.22 1.22 6.29 11
2005 204,692 1.23 1.23 6.22 1.22 1.22 6.23 5
2004 201,307 1.26 1.26 6.48 1.25 1.25 6.49 16
2003 191,409 1.26 1.26 6.65 1.25 1.25 6.66 30
====================================================================================================================================
Floating Rate Obligations
Preferred Shares at End of Period at End of Period
-------------------------------------- -------------------------
Aggregate Liquidation Aggregate
Amount and Market Asset Amount Asset
Outstanding Value Coverage Outstanding Coverage
(000) Per Share Per Share (000) Per $1,000
===============================================================================
CALIFORNIA VALUE (NCA)
-------------------------------------------------------------------------------
Year Ended 8/31:
2008(b) $ N/A $ N/A $ N/A $20,421 $12,714
2007 N/A N/A N/A 3,576 70,637
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 -- --
CALIFORNIA PERFORMANCE PLUS (NCP)
-------------------------------------------------------------------------------
Year Ended 8/31:
2008(b) 106,000 25,000 66,790 4,258 67,507
2007 106,000 25,000 70,157 4,258 70,860
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 -- --
===============================================================================
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. The last dividend declared in the period, which
is typically paid on the first business day of the following month, is
assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period takes place over
several days, and in some instances may not be based on the market price,
so the actual reinvestment price may be different from the price used in
the calculation. Total returns are not annualized.
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. The last dividend declared in the period, which is typically paid on
the first business day of the following month, is assumed to be reinvested
at the ending net asset value. The actual reinvest price for the last
dividend declared in the period may often be based on the Fund's market
price (and not its net asset value), and therefore may be different from
the price used in the calculation. Total returns are not annualized.
** After custodian fee credit, where applicable.
*** Annualized.
+ 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.
(a) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the six months ended February 29, 2008.
See accompanying notes to financial statements.
68-69 spread
Financial
HIGHLIGHTS (continued) (Unaudited)
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 OPPORTUNITY (NCO)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2008(b) $14.90 $ .50 $(1.10) $(.14) $(.03) $ (.77) $(.36) $(.07) $ (.43)
2007 15.67 .99 (.68) (.28) -- .03 (.80) -- (.80)
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)
CALIFORNIA INVESTMENT QUALITY (NQC)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2008(b) 14.81 .49 (.94) (.14) --**** (.59) (.37) (.01) (.38)
2007 15.48 .97 (.59) (.26) (.02) .10 (.70) (.07) (.77)
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)
===================================================================================================================================
Total Returns
--------------------
Based
Ending on
Common Based Common
Share Ending on Share Net
Net Asset Market Market Asset
Value Value Value* Value*
================================================================
CALIFORNIA OPPORTUNITY (NCO)
----------------------------------------------------------------
Year Ended 8/31:
2008(b) $13.70 $12.86 (7.52)% (5.33)%
2007 14.90 14.36 (1.62) .07
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
CALIFORNIA INVESTMENT QUALITY (NQC)
----------------------------------------------------------------
Year Ended 8/31:
2008(b) 13.84 12.80 (4.18) (4.12)
2007 14.81 13.74 (1.03) .57
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
================================================================
Ratios/Supplemental Data
------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets Ratios to Average Net Assets
Applicable to Common Shares Applicable to Common Shares
Before Credit After Credit**
------------------------------------------- ------------------------------------------
Ending
Net
Assets
Applicable Expenses Expenses Net Expenses Expenses Net Portfolio
to Common Including Excluding Investment Including Excluding Investment Turnover
Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate
====================================================================================================================================
CALIFORNIA OPPORTUNITY (NCO)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2008(b) $111,871 1.35%*** 1.26%*** 6.68%*** 1.34%*** 1.25%*** 6.69%*** 6%
2007 121,728 1.31 1.26 6.37 1.29 1.24 6.39 10
2006 127,792 1.26 1.26 6.43 1.24 1.24 6.45 18
2005 131,587 1.25 1.25 6.42 1.25 1.25 6.43 7
2004 127,743 1.28 1.28 6.72 1.28 1.28 6.73 13
2003 120,437 1.27 1.27 6.74 1.26 1.26 6.75 16
CALIFORNIA INVESTMENT QUALITY (NQC)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2008(b) 187,998 1.37*** 1.22*** 6.57*** 1.37*** 1.21*** 6.57*** 14
2007 201,067 1.34 1.22 6.32 1.32 1.20 6.33 12
2006 210,242 1.22 1.22 6.28 1.21 1.21 6.29 11
2005 215,446 1.21 1.21 6.24 1.20 1.20 6.25 5
2004 212,509 1.22 1.22 6.48 1.22 1.22 6.49 20
2003 204,974 1.21 1.21 6.73 1.21 1.21 6.73 26
====================================================================================================================================
Floating Rate Obligations
Preferred Shares at End of Period at End of Period
-------------------------------------- -------------------------
Aggregate Liquidation Aggregate
Amount and Market Asset Amount Asset
Outstanding Value Coverage Outstanding Coverage
(000) Per Share Per Share (000) Per $1,000
===============================================================================
CALIFORNIA OPPORTUNITY (NCO)
-------------------------------------------------------------------------------
Year Ended 8/31:
2008(b) $ 68,000 $25,000 $66,129 $3,536 $51,869
2007 68,000 25,000 69,753 3,536 54,656
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 -- --
CALIFORNIA INVESTMENT QUALITY (NQC)
-------------------------------------------------------------------------------
Year Ended 8/31:
2008(b) 112,000 25,000 66,964 9,170 33,715
2007 112,000 25,000 69,881 9,170 35,140
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 -- --
===============================================================================
* 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. The last dividend declared in the period, which
is typically paid on the first business day of the following month, is
assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period takes place over
several days, and in some instances may not be based on the market price,
so the actual reinvestment price may be different from the price used in
the calculation. Total returns are not annualized.
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. The last dividend declared in the period, which is typically paid on
the first business day of the following month, is assumed to be reinvested
at the ending net asset value. The actual reinvest price for the last
dividend declared in the period may often be based on the Fund's market
price (and not its net asset value), and therefore may be different from
the price used in the calculation. Total returns are not annualized.
** After custodian fee credit, where applicable.
*** Annualized.
**** Distributions from Capital Gains to Preferred Shareholders rounds to less
than $.01 per share.
+ 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.
(a) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the six months ended February 29, 2008.
See accompanying notes to financial statements.
70-71
Financial
HIGHLIGHTS (continued) (Unaudited)
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 SELECT QUALITY (NVC)
----------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2008(b) $14.75 $ .50 $(.95) $(.13) $(.02) $ (.60) $ (.35) $(.05) $ (.40)
2007 15.49 .98 (.64) (.27) (.01) .06 (.75) (.05) (.80)
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)
CALIFORNIA QUALITY INCOME (NUC)
----------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2008(b) 14.93 .51 (.81) (.16) -- (.46) (.36) -- (.36)
2007 15.60 1.01 (.59) (.28) (.01) .13 (.77) (.03) (.80)
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)
==================================================================================================================================
Total Returns
--------------------
Based
Ending on
Common Based Common
Share Ending on Share Net
Net Asset Market Market Asset
Value Value Value* Value*
================================================================
CALIFORNIA SELECT QUALITY (NVC)
----------------------------------------------------------------
Year Ended 8/31:
2008(b) $13.75 $12.70 (6.37)% (4.33)%
2007 14.75 13.97 (3.40) .29
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
CALIFORNIA QUALITY INCOME (NUC)
----------------------------------------------------------------
Year Ended 8/31:
2008(b) 14.11 13.25 (3.43) (3.20)
2007 14.93 14.08 (2.92) .74
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
================================================================
Ratios/Supplemental Data
----------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets Ratios to Average Net Assets
Applicable to Common Shares Applicable to Common Shares
Before Credit After Credit**
------------------------------------------ -------------------------------------------
Ending
Net
Assets
Applicable Expenses Expenses Net Expenses Expenses Net Portfolio
to Common Including Excluding Investment Including Excluding Investment Turnover
Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate
====================================================================================================================================
CALIFORNIA SELECT QUALITY (NVC)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2008(b) $317,927 1.30%*** 1.20%*** 6.67%*** 1.29%*** 1.19%*** 6.68%*** 9%
2007 341,102 1.28 1.19 6.36 1.26 1.17 6.37 16
2006 358,131 1.20 1.20 6.38 1.19 1.19 6.39 16
2005 369,087 1.19 1.19 6.44 1.18 1.18 6.44 8
2004 360,938 1.21 1.21 6.78 1.20 1.20 6.78 14
2003 344,892 1.20 1.20 6.78 1.20 1.20 6.78 20
CALIFORNIA QUALITY INCOME (NUC)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2008(b) 310,691 1.30*** 1.20*** 6.72*** 1.29*** 1.20*** 6.73*** 8
2007 328,756 1.28 1.20 6.51 1.27 1.18 6.53 16
2006 343,096 1.21 1.21 6.54 1.20 1.20 6.55 12
2005 352,752 1.20 1.20 6.62 1.20 1.20 6.63 6
2004 340,873 1.22 1.22 6.89 1.21 1.21 6.89 16
2003 326,280 1.22 1.22 6.90 1.21 1.21 6.91 46
====================================================================================================================================
Floating Rate Obligations
Preferred Shares at End of Period at End of Period
-------------------------------------- -------------------------
Aggregate Liquidation Aggregate
Amount and Market Asset Amount Asset
Outstanding Value Coverage Outstanding Coverage
(000) Per Share Per Share (000) Per $1,000
===============================================================================
CALIFORNIA SELECT
QUALITY (NVC)
-------------------------------------------------------------------------------
Year Ended 8/31:
2008(b) $192,000 $25,000 $66,397 $10,096 $51,508
2007 192,000 25,000 69,414 10,096 53,803
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 -- --
CALIFORNIA QUALITY
INCOME (NUC)
-------------------------------------------------------------------------------
Year Ended 8/31:
2008(b) 185,000 25,000 66,985 9,698 52,113
2007 185,000 25,000 69,427 9,698 53,975
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 -- --
===============================================================================
* 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. The last dividend declared in the period, which
is typically paid on the first business day of the following month, is
assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period takes place over
several days, and in some instances may not be based on the market price,
so the actual reinvestment price may be different from the price used in
the calculation. Total returns are not annualized.
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. The last dividend declared in the period, which is typically paid on
the first business day of the following month, is assumed to be reinvested
at the ending net asset value. The actual reinvest price for the last
dividend declared in the period may often be based on the Fund's market
price (and not its net asset value), and therefore may be different from
the price used in the calculation. Total returns are not annualized.
** After custodian fee credit, where applicable.
*** Annualized.
+ 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.
(a) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the six months ended February 29, 2008.
See accompanying notes to financial statements.
72-73 spread
Reinvest Automatically
EASILY and CONVENIENTLY
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 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
greater of the net asset value or 95% of 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. If the Plan Agent begins purchasing Fund shares on
the open market while shares are trading below net asset value, but the Fund's
shares subsequently trade at or above their net asset value before the Plan
Agent is able to complete its purchases, the Plan Agent may cease open-market
purchases and may invest the uninvested portion of the distribution in
newly-issued Fund shares at a price equal to the greater of the shares' net
asset value or 95% of the shares' market value on the last business day
immediately prior to the purchase date. 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.
74
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.
75
NOTES
76
NOTES
77
Glossary of
TERMS USED in this REPORT
o AUCTION RATE BOND: An auction rate bond is a security whose interest
payments are adjusted periodically through an auction process, which
process typically also serves as a means for buying and selling the bond.
Auctions that fail to attract enough buyers for all the shares offered for
sale are deemed to have "failed", with current holders receiving a
formula-based interest rate until the next scheduled auction.
o 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.
o AVERAGE EFFECTIVE MATURITY: The average of the number of years to maturity
of the bonds in a Fund's portfolio, computed by weighting each bond's time
to maturity (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 unless an escrow account has been
established to redeem the bond before maturity. The market value weighting
for an investment in an inverse floating rate security is the value of the
portfolio's residual interest in the inverse floating rate trust, and does
not include the value of the floating rate securities issued by the trust.
o INVERSE FLOATERS: Inverse floating rate securities are created by
depositing a municipal bond, typically with a fixed interest rate, into a
special purpose trust created by a broker-dealer. This trust, in turn, (a)
issues floating rate certificates typically paying short-term tax-exempt
interest rates to third parties in amounts equal to some fraction of the
deposited bond's par amount or market value, and (b) issues an inverse
floating rate certificate (sometimes referred to as an "inverse floater")
to an investor (such as a Fund) interested in gaining investment exposure
to a long-term municipal bond. The income received by the holder of the
inverse floater varies inversely with the short-term rate paid to the
floating rate certificates' holders, and in most circumstances the holder
of the inverse floater bears substantially all of the underlying bond's
downside investment risk. The holder of the inverse floater typically also
benefits disproportionately from any potential appreciation of the
underlying bond's value. Hence, an inverse floater essentially represents
an investment in the underlying bond on a leveraged basis.
o 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.
o MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An
investment's current annualized dividend divided by its current market
price.
o NET ASSET VALUE (NAV): A Fund's common share NAV per share is calculated by
subtracting the liabilities of the Fund (including any Preferred 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.
o 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.
o ZERO COUPON BOND: A zero coupon bond does not pay a regular interest coupon
to its holders during the life of the bond. Tax-exempt income to the holder
of the bond comes from accretion of the difference between the original
purchase price of the bond at issuance and the par value of the bond at
maturity and is effectively paid at maturity. The market prices of zero
coupon bonds generally are more volatile than the market prices of bonds
that pay interest periodically.
78
Other Useful INFORMATION
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
You may obtain (i) each Fund's quarterly portfolio of investments, (ii)
information regarding how the Funds voted proxies relating to portfolio
securities held during the twelve-month period ended June 30, 2007, and (iii) a
description of the policies and procedures that the Funds used to determine how
to vote proxies relating to portfolio securities 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 (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 100 F Street NE, 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 SEC the certification of its Chief Executive
Officer and Chief Financial Officer required by Section 302 of the
Sarbanes-Oxley Act.
BOARD OF DIRECTORS
Robert P. Bremner
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Carole E. Stone
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 common
or preferred shares were repurchased during the period covered by this report.
Any future repurchases will be reported to shareholders in the next annual or
semi-annual report.
79
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 $164 billion in assets, as of December 31, 2007, 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;
Symphony, a leading institutional manager of market-neutral alternative
investment portfolios; Santa Barbara, a leader in growth equities; and
Tradewinds, 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.
Learn more about Nuveen Funds at: www.nuveen.com/etf
Share prices
Fund details
Daily financial news
Investor education
Interactive planning tools
ESA-A-0208D
ITEM 2. CODE OF ETHICS.
Not applicable to this filing.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable to this filing.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable to this filing.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to this filing.
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.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrant's Board implemented after the registrant
last provided disclosure in response to this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")(17 CFR
240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter
of the period covered by this report that has materially affected, or
is reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form.
(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 to
this filing.
(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: See
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: See 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/ Kevin J. McCarthy
----------------------------------------------
Kevin J. McCarthy
(Vice President and Secretary)
Date: May 8, 2008
-------------------------------------------------------------------
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: May 8, 2008
-------------------------------------------------------------------
By (Signature and Title) /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: May 8, 2008
-------------------------------------------------------------------