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: February 28
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Date of reporting period: February 28, 2010
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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.
[LOGO]
NUVEEN
INVESTMENTS
Closed-End Funds
Nuveen Investments
Municipal Closed-End Funds
IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R)
Annual Report February
28, 2010
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NUVEEN CALIFORNIA NUVEEN CALIFORNIA NUVEEN CALIFORNIA NUVEEN CALIFORNIA
MUNICIPAL VALUE MUNICIPAL VALUE PERFORMANCE PLUS MUNICIPAL MARKET
FUND, INC. FUND 2 MUNICIPAL FUND, INC. OPPORTUNITY FUND, INC.
NCA NCB NCP NCO
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NUVEEN CALIFORNIA NUVEEN CALIFORNIA NUVEEN CALIFORNIA
INVESTMENT QUALITY SELECT QUALITY QUALITY INCOME
MUNICIPAL FUND, MUNICIPAL MUNICIPAL
INC. FUND, INC. FUND, INC.
NQC NVC NUC
February
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NUVEEN
INVESTMENTS
Chairman's
Letter to Shareholders
[IMAGE]
DEAR SHAREHOLDER,
The economic environment in which your Fund operates reflects continuing but
uneven economic recovery. The U.S. and other major industrial countries are
experiencing steady but comparatively low levels of economic growth, while
emerging market countries are seeing a resumption of relatively strong economic
expansion. The largest source of economic uncertainty is the potential impact of
steps being considered by many governments to counteract the extraordinary
governmental spending and credit expansion carried out to deal with the
financial and economic crisis of 2008. Consequently, the implications for future
tax rates, government spending, interest rates and the pace of economic recovery
in the U.S. and other leading economies are extremely difficult to predict at
the present time. The long term health of the global economy depends on
restoring some measure of fiscal discipline around the world, but since all of
the corrective steps require economic pain, it is not surprising that
governments are reluctant to undertake them.
In the near term, governments remain committed to furthering economic recovery
and realizing a meaningful reduction in their national unemployment rates. Such
an environment should produce continued economic growth and, consequently,
attractive investment opportunities. Over the longer term, the larger
uncertainty mentioned earlier carries the risk of unexpected potholes in the
road to sustained recovery. For this reason, Nuveen's investment management
teams are working hard to balance return and risk by building well-diversified
portfolios, among other strategies. I encourage you to read the following
commentary on the management of your Fund. As always, I also encourage you to
contact your financial consultant if you have any questions about your Nuveen
Fund investment.
Over the last twelve months, the Nuveen leveraged municipal closed-end funds
continued to make progress in refinancing their auction rate preferred shares
(ARPS). By the fall of 2009, all of the Nuveen taxable closed-end Funds had
completed redemption of their ARPS at par value. As of March 31, 2010,
approximately 40% of the municipal ARPS issued by the Nuveen Funds also had been
redeemed. Please consult the Nuveen web site for the most recent information on
this issue and all recent developments on your Nuveen Funds at: www.nuveen.com.
On behalf of the other members of your Fund's Board, we look forward to
continuing to earn your trust in the months and years ahead.
Sincerely,
/s/ Robert P. Bremner
Robert P. Bremner
Chairman of the
Board April 19, 2010
Nuveen Investments 1
Portfolio Manager's Comments
Nuveen California Municipal Value Fund, Inc. (NCA)
Nuveen California Municipal Value Fund 2 (NCB)
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)
PORTFOLIO MANAGER SCOTT ROMANS REVIEWS ECONOMIC AND MUNICIPAL MARKET CONDITIONS
AT BOTH THE NATIONAL AND STATE LEVELS, KEY INVESTMENT STRATEGIES, AND THE
TWELVE-MONTH PERFORMANCE OF THE NUVEEN CALIFORNIA MUNICIPAL FUNDS. SCOTT, WHO
JOINED NUVEEN IN 2000, HAS MANAGED NCA, NCP, NCO, NQC, NVC AND NUC SINCE 2003.
IN APRIL 2009, HE ADDED PORTFOLIO MANAGEMENT RESPONSIBILITY FOR THE NEW NUVEEN
CALIFORNIA MUNICIPAL VALUE FUND 2 (NCB).
WHAT FACTORS AFFECTED THE U.S. ECONOMIC AND MUNICIPAL MARKET ENVIRONMENTS DURING
THE TWELVE-MONTH REPORTING PERIOD ENDED FEBRUARY 28, 2010?
During this reporting period, municipal bond prices generally rose as strong
cash flows into municipal bond funds combined with tighter supply of new
tax-exempt issuance to provide favorable supply and demand conditions. As the
period began, there continued to be considerable downward pressure on the
economy, and both the Federal Reserve (Fed) and the federal government continued
their efforts to improve overall economic conditions. The Fed kept the benchmark
fed funds rate in a target range of zero to 0.25% after cutting it to this
record low level in December 2008. In February 2009, the federal government
passed a $787 billion economic stimulus package. At its meeting in March 2010
(after the close of its reporting period), the Fed pledged to keep the fed funds
rate "exceptionally low" for an "extended period."
In recent months, these and other measures taken by the Fed and the government
to ease the economic recession have produced some incipient signs of
improvement. In the fourth quarter of 2009, the U.S. gross domestic product
(GDP) grew at an annualized rate of 5.6%, the fastest pace in six years. This
was the second quarter in a row that the economy posted positive growth,
following four quarters of contraction. Housing prices also provided a bright
spot between May 2009 and January 2010 by recording nine consecutive months of
positive returns (on a seasonally adjusted basis) after three years of decline.
At the same time, inflation remained relatively tame, as the Consumer Price
Index (CPI) rose 2.1 %. The core CPI (which excludes food and energy) rose 1.3%
over the year, within the Fed's unofficial objective of 2.0% or lower for this
measure. Since the
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CERTAIN STATEMENTS IN THIS REPORT ARE FORWARD-LOOKING STATEMENTS. DISCUSSIONS OF
SPECIFIC INVESTMENTS ARE FOR ILLUSTRATION ONLY AND ARE NOT INTENDED AS
RECOMMENDATIONS OF INDIVIDUAL INVESTMENTS. THE FORWARD-LOOKING STATEMENTS AND
OTHER VIEWS EXPRESSED HEREIN ARE THOSE OF THE PORTFOLIO MANAGER AS OF THE DATE
OF THIS REPORT. ACTUAL FUTURE RESULTS OR OCCURRENCES MAY DIFFER SIGNIFICANTLY
FROM THOSE ANTICIPATED IN ANY FORWARD-LOOKING STATEMENTS AND THE VIEWS EXPRESSED
HEREIN ARE SUBJECT TO CHANGE AT ANY TIME, DUE TO NUMEROUS MARKET AND OTHER
FACTORS. THE FUNDS DISCLAIM ANY OBLIGATION TO UPDATE PUBLICLY OR REVISE ANY
FORWARD-LOOKING STATEMENTS OR VIEWS EXPRESSED HEREIN.
2 Nuveen Investments
recession began in December 2007, the U.S. economy has lost a total of 8.4
million jobs, the biggest decline since the Great Depression. While labor
markets remained weak, recent months saw a slight improvement. As of February
2010, the national unemployment rate was 9.7%, up from 8.2% in February 2009 but
down from the 26-year high of 10.1 % in October 2009.
Municipal market conditions began to show general signs of improvement
throughout most of the period. This trend was bolstered by the reduced supply of
tax-exempt municipal debt in the marketplace, due in part to the introduction of
the Build America Bond program in April 2009. Build America Bonds are a new
class of taxable municipal debt created as part of the February 2009 economic
stimulus package. These bonds currently offer municipal issuers a federal
subsidy equal to 35% of the security's interest payments and therefore provide
issuers with an attractive alternative to traditional tax-exempt debt. Between
April 2009 and the end of this reporting period, taxable Build America Bonds
issuance totaled $78.2 billion, accounting for 20% of new bonds issued in the
municipal market during that time. Over the twelve months ended February 28,
2010, municipal bond issuance nationwide--both tax-exempt and taxable--totaled
$423.1 billion, an increase of 7.3% compared with the twelve-month period ended
February 28, 2009. Demand for tax-exempt bonds remained strong during this
period and, combined with lower tax-exempt supply, provided support for
municipal bond prices.
HOW WERE THE ECONOMIC AND MARKET ENVIRONMENTS IN CALIFORNIA DURING THIS PERIOD?
California continued to struggle to emerge from a deep recession, which was
driven in part by the severe correction in the state's housing market. As of
February 2010, California's unemployment rate had risen to 12.5%, up from 10.2%
in February 2009. On the positive side, California's economy remained relatively
diverse and exports continue to grow based on improving global demand,
especially for the state's technology products. According to the Standard &
Poor's (S&P)/Case-Shiller home price index of 20 major metropolitan areas, home
prices in San Francisco, San Diego and Los Angeles rose 9.0%, 5.9%, and 3.9%,
respectively, during the twelve months ended January 2010, compared with an
average decline of 0.7% nationally. The increases in home value in these three
cities contrasted sharply with their declines for the twelve months ended
January 2009, which ranged from 25% to 32%. During the summer of 2009, the state
closed a gap in the fiscal 2009-2010 budget using an assortment of one-time
measures, which led to the reappearance of the same kinds of deficit problems in
the fiscal 2010-2011 budget. For the 2010-2011 budget, California faces a total
shortfall of almost $20 billion. Plans called for closing that gap by cutting
spending on health and human services, welfare, transportation and environmental
programs as well as by generating additional revenue through the rollback of
recent corporate tax breaks and expansion of oil drilling off the Santa Barbara
coast. In addition, the state proposed asking the federal government for
increased funds to help cover costs for Medicaid, imprisoning illegal immigrants
and implementing federal education mandates. After billions of dollars in cuts
to school funding in California in recent years, spending for public schools and
colleges, which accounted for $36 billion of expenditures in the 2010-2011
budget, would be protected under the current plan.
Nuveen Investments 3
As of February 2010, Moody's, S&P and Fitch rated California general obligation
(GOs) bonds at Baa1, A- and BBB, respectively. These ratings reflected Moody's
downgrades to A2 from A1 in March 2009 and to Baa1 from A2 in July 2009. In
January 2010, S&P lowered California's GO rating to A- from A. Fitch, which had
rated California GOs at A+ in February 2009, downgraded its rating three times
during this period--in March, June and July 2009. All three rating agencies
cited the state's severe fiscal imbalance and continued budgetary stress as
reasons for the downgrades. For the twelve months ended February 28, 2010,
municipal issuance in California totaled $74.0 billion, an increase of 42% from
the previous twelve months. California remained the largest state issuer in the
nation, representing approximately 17.5% of total issuance nationwide for the
twelve months ended February 2010.
WHAT KEY STRATEGIES WERE USED TO MANAGE THE CALIFORNIA FUNDS DURING THIS
REPORTING PERIOD?
As previously mentioned, the availability of new tax-exempt supply declined
during this period, due in part to the introduction of taxable Build America
Bonds in April 2009. Although total municipal issuance--including tax-exempt as
well as taxable issuance--was up substantially in California for the twelve
months ended February 28, 2010, Build America Bonds accounted for more than 83%
of the increase. With $18.3 billion in Build America Bonds issued in the state
during this period, California ranked as the largest user of these bonds among
the 50 states. Since interest payments from Build America Bonds represent
taxable income, we do not view these bonds as good investment opportunities for
the tax-exempt California Funds.
Given the constrained supply, we continued to find attractive value
opportunities, taking a bottom-up approach to discovering undervalued sectors
and individual credits with the potential to perform well over the long term.
During this period, the California Funds purchased health care, health care
district and public utilities bonds. Tax-exempt supply was usually more
plentiful in the health care sector because hospitals generally do not qualify
for the Build America Bond program and so must continue to issue bonds in the
tax-exempt municipal market. In addition, health care entities in California
were active issuers during this period, as they sought to replace variable rate
issuance with fixed rates. Although we had previously de-emphasized bonds issued
by the State of California due to their exposure to the state's economic
problems, we believed that California GOs and public works bonds (backed by
appropriation debt of the state) offered good value as credit spreads on these
bonds widened. As a result, the Funds became major purchasers of these state
credits for the first time in a long while, especially during the last part of
2009.
Cash for new purchases during this period was generated largely by maturing or
called bonds. In addition, the Funds took advantage of selected opportunities to
sell a few pre-refunded and other bonds with very short maturities. In general,
we tried to manage our purchase opportunities around anticipated cash flows.
As of February 28, 2010, all seven of these Funds continued to use inverse
floating rate securities.(1) We employ inverse floaters as a form of leverage
for a variety of reasons, including duration(2) management, income enhancement
and total return enhancement.
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1 An inverse floating rate security, also known as an inverse floater, 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 this reporting period, are further defined within
the Notes to Financial Statements and Glossary of Terms Used in this
Report sections of this report.
2 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.
4 Nuveen Investments
HOW DID THE FUNDS PERFORM?
Individual results for these Funds, as well as relevant index and peer group
information, are presented in the accompanying table.
AVERAGE ANNUAL TOTAL RETURNS ON COMMON
SHARE NET ASSET VALUE
FOR PERIODS ENDED 2/28/10 1-YEAR 5-YEAR 10-YEAR
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NCA(3) 12.85% 3.80% 5.63%
NCB(3) 14.34%* N/A N/A
NCP 18.20% 3.55% 6.18%
NCO 16.25% 3.26% 6.10%
NQC 18.21% 3.66% 6.33%
NVC 19.60% 4.16% 6.65%
NUC 16.84% 4.33% 6.45%
Standard & Poor's (S&P) California
Municipal Bond Index(4) 9.81% 3.95% 5.59%
Standard & Poor's (S&P) National Municipal
Bond Index(5) 11.20% 4.32% 5.77%
LIPPER CALIFORNIA MUNICIPAL DEBT FUNDS
AVERAGE(6) 20.09% 2.84% 6.16%
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For the twelve months ended February 28, 2010, the total returns on common share
net asset value (NAV) for all seven of these California Funds exceeded the
returns for the Standard & Poor's (S&P) California Municipal Bond Index and the
S&P National Municipal Bond Index and underperformed the Lipper California
Municipal Debt Funds Average.
Key management factors that influenced the Funds' returns during this period
included yield curve and duration positioning, credit exposure and sector
allocation. In addition, the use of leverage was an important factor affecting
the Funds' performances over this period. The primary reason that the returns of
NCA and NCB trailed those of the other Funds for the twelve-month period was
that these two Funds do not use structural leverage. The impact of leverage is
discussed in more detail on page seven.
During this period, yields on tax-exempt bonds generally declined and bond
prices rose, especially at the longer end of the municipal yield curve. As a
result, longer-term bonds generally outperformed credits with shorter
maturities. Overall, duration and yield curve positioning proved positive for
the performances of these Funds. In general, the Funds were underexposed to the
underperforming short end of the yield curve and tended to have heavier
weightings in the longer part of the curve, which had a positive impact on
performance. In particular, NCB benefited from the fact that it had the longest
duration among these Funds. This was typical for a new Fund that had recently
been invested in the longer end of the market. NCA, with a duration that was in
line with its duration target, did not benefit as much from the environment of
the past twelve months as did Funds with longer durations.
While duration and yield curve positioning played an important role in
performance during these twelve months, credit exposure also had a significant
impact. The demand for municipal bonds increased during this period, driven by a
variety of factors, including concerns about potential tax increases, the need
to rebalance portfolio allocations and a growing appetite for additional risk.
At the same time, the supply of tax-exempt municipal securities declined. As
investors bid up municipal bond prices, bonds rated
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* NCB's cumulative return represents the period from its inception on April
28, 2009, through February 28, 2010.
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 and NCB do not issue auction rate preferred (Preferred) shares. the
remaining five Funds in this report issue Prefered shares.
4 The Standard & Poor's (S&P) California Municipal Bond Index is an
unleveraged, market value-weighted index designed to measure the
performance of the investment-grade California municipal bond market. This
index does not reflect any initial or ongoing expenses and is not
available for direct investment.
5 The Standard & Poor's (S&P) National Municipal Bond Index is an
unleveraged, market value-weighted index designed to measure the
performance of the investment-grade U.S. municipal bond market. This index
does not reflect any initial or ongoing expenses and is not available for
direct investment.
6 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: 1-year, 22 funds; 5-year, 22 funds; and 10-year, 14 funds. Lipper
returns account for the effects of management fees and assume reinvestment
of dividends, but do not reflect any applicable sales charges. The Lipper
average is not available for direct investment.
Nuveen Investments 5
BBB or below and non-rated bonds generally outperformed those rated AAA. In this
environment, the Funds' performances benefited from their allocations of lower
quality credits. This was especially true in NCA, NCP, NCO and NVC, all of which
had relatively larger exposures to bonds rated BBB or lower and non-rated bonds.
Holdings that generally contributed to the Funds' performances during this
period included industrial development revenue (IDR) and health care bonds.
Revenue bonds as a whole performed well, with housing, transportation and public
utilities among the sectors also outperforming the general municipal market for
this period. In addition, zero coupon bonds and lower-rated tobacco bonds were
among the strongest performers.
Pre-refunded bonds, which are typically backed by U.S. Treasury securities,
performed relatively poorly during this period. The underperformance of these
bonds can be attributed primarily to their shorter effective maturities and
higher credit quality. As of February 28, 2010, NUC and NCA had the heaviest
exposures to pre-refunded bonds, while NCP had the smallest allocation, which
benefited its performance. (NCB did not hold any pre-refunded bonds, which is
typical for a newly established Fund.) Many general obligation bonds also failed
to keep pace with the overall municipal market, while education, water and
sewer, leasing and resource recovery trailed the other revenue sectors for the
twelve months. The Funds generally had lower weightings in state and local GOs
than the market as a whole, which lessened the impact of the under-performance
of this sector on the Funds' returns. Our holdings of "dirt deal" bonds or
land-secured bonds that finance public infrastructure costs for new
developments, also generally performed poorly during this period.
6 Nuveen Investments
IMPACT OF THE FUNDS' LEVERAGE STRATEGIES ON PERFORMANCE
One important factor impacting the returns of most of these Funds relative to
the comparative indexes was the Funds' use of financial leverage. The Funds use
leverage because their managers believe that, over time, leveraging provides
opportunities for additional income and total returns for common shareholders.
However, use of leverage also can expose common shareholders to additional
volatility. For example, as the prices of securities held by a Fund decline, the
negative impact of these valuation changes on common share net asset value and
common shareholder total return is magnified by the use of leverage. Conversely,
leverage may enhance common share returns during periods when bond prices
generally are rising.
Leverage made a significant positive contribution to the performance of these
Funds over this reporting period.
RECENT DEVELOPMENTS REGARDING THE FUNDS' LEVERAGED CAPITAL STRUCTURE
Shortly after their inceptions, each of the Funds except NCA and NCB issued ARPS
to create financial leverage. As noted in past shareholder reports, the ARPS
issued by many closed-end funds, including these Funds, have been hampered by a
lack of liquidity since February 2008. Since that time, more ARPS have been
submitted for sale in each of their regularly scheduled auctions than there have
been offers to buy. In fact, offers to buy have been almost completely
non-existent since late February 2008. This means that these auctions have
"failed to clear," and that many, or all, of the ARPS shareholders who wanted to
sell their shares in these auctions were unable to do so. This lack of liquidity
in ARPS did not lower the credit quality of these shares, and ARPS shareholders
unable to sell their shares received distributions at the "maximum rate"
applicable to failed auctions, as calculated in accordance with the
pre-established terms of the ARPS. In the recent market, with short-term rates
at multigenerational lows, those maximum rates also have been low.
One continuing implication for common shareholders from the auction failures is
that each Fund's cost of leverage likely has been incrementally higher at times
than it otherwise might have been had the auctions continued to be successful.
As a result, each Fund's common share earnings likely have been incrementally
lower at times than they otherwise might have been.
As noted in past shareholder reports, the Nuveen funds' Board of
Directors/Trustees authorized several methods to refinance a portion of the
Nuveen funds' outstanding ARPS. Some Funds have invested in tender option bonds
(TOBs), also known as floating rate securities. The amount of TOBs that a Fund
may use varies according to the composition of each Fund's portfolio. Some Funds
have a greater ability to use TOBs than others. As of February 28, 2010, some
Funds have issued Variable Rate Demand Preferred Shares (VRDP), but these
issuances have been limited since it has been difficult to find liquidity
providers on economically viable terms given the constrained credit environment.
Some Funds have issued MuniFund Term Preferred Shares (MTP), a fixed-rate form
of preferred stock with a mandatory redemption period of five years.
Nuveen Investments 7
While all these efforts have reduced the total amount of outstanding ARPS issued
by the Nuveen funds, the Funds cannot provide any assurance on when the
remaining outstanding ARPS might be redeemed.
As of February 28, 2010, the amount of ARPS redeemed by the Funds are as shown
in the accompanying table. As noted previously, NCA and NCB do not issue ARPS.
As of February 28, 2010, and the since inception of the Funds' repurchase
program the following Funds have cumulatively repurchased common shares as shown
in the accompanying table.
Auction Rate % of Original
Preferred Shares Auction Rate
Fund Redeemed Preferred Shares
--------------------------------------------------------------------------------
NCP $ 14,825,000 14.0%
NCO $ 19,225,000 28.3%
NQC $ 17,075,000 15.2%
NVC $ 33,975,000 17.7%
NUC $ 27,775,000 15.0%
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Subsequent to the reporting period, the following Funds noticed for redemption
at par additional ARPS. The total amount of ARPS redeemed and percentage of each
Fund's original ARPS subsequent to the reporting period are as shown in the
accompanying table.
Auction Rate Auction Rate % of Original
Preferred Shares Preferred Shares Auction Rate
Fund Noticed for Redemption Redeemed Preferred Shares
--------------------------------------------------------------------------------
NCP 10,825,000 25,650,000 24.2%
NCO 48,775,000 68,000,000 100.0%
--------------------------------------------------------------------------------
Subsequent to the reporting period, NCO issued $49.8 million of VRDP to redeem
at par the Fund's outstanding ARPS. As noted previously, VRDP is a
newly-developed instrument that essentially replaces all or a portion of the
ARPS used as leverage and potentially could be used to refinance all or a
portion of the ARPS of other Funds. VRDP shares include a liquidity feature that
allows holders of VRDP to have their shares purchased by a liquidity provider in
the event that sell orders have not been matched with purchase orders and
successfully settled in a remarketing. The liquidity feature for NCO's VRDP is
being provided by Deutsche Bank AG, acting through its New York Branch. VRDP
dividends will be set weekly at a rate established by Morgan Stanley & Co.
Incorporated, as remarketing agent. VRDP is offered only to qualified
institutional buyers, defined pursuant to Rule 144A under the Securities Act of
1933.
As of February 28, 2010, 80 out of the 84 Nuveen closed-end municipal funds that
had issued ARPS have redeemed, at par, all or a portion of these shares. These
redemptions bring the total amount of Nuveen's municipal closed-end funds' ARPS
redemptions to approximately $3.0 billion of the original approximately $11.0
billion outstanding.
For up-to-date information, please visit the Nuveen CEF Auction Rate Preferred
Resource Center at: http://www.nuveen.com/arps.
8 Nuveen Investments
COMMON SHARE DIVIDEND AND
SHARE PRICE INFORMATION
During the twelve months ended February 28, 2010, NCP, NCO, NQC, NVC and NUC
each had three increases in their monthly dividends. These five Funds also had
an additional dividend increase that was declared just prior to the start of
this reporting period and took effect in March 2009. The dividend of NCA
remained stable throughout the reporting period. NCB, which was introduced in
April 2009, paid its initial monthly dividend distribution effective June 2009
and maintained a stable dividend through the remainder of the period.
Due to normal portfolio activity, common shareholders of NCB received a
short-term capital gains distribution of $0.0208 per share at the end of
December 2009.
All of the Funds in this report seek to pay stable dividends at rates that
reflect each Fund's past results and projected future performance. During
certain periods, each Fund may pay dividends at a rate that may be more or less
than the amount of net investment income actually earned by the Fund during the
period. If a Fund has cumulatively earned more than it has paid in dividends, it
holds the excess in reserve as undistributed net investment income (UNII) as
part of the Fund's NAV. Conversely, if a Fund has cumulatively paid dividends in
excess of its earnings, the excess constitutes negative UNII that is likewise
reflected in the Fund's NAV. Each Fund will, over time, pay all of its net
investment income as dividends to shareholders. As of February 28, 2010, all of
the Funds in this report had positive UNII balances for both tax and financial
statement purposes.
Nuveen Investments 9
COMMON SHARE REPURCHASES AND SHARE PRICE INFORMATION
As of February 28, 2010, and the since inception of the Funds' repurchase
program the following Funds have cumulatively repurchased common shares as shown
in the accompanying table.
Common Shares % of Outstanding
Fund Repurchased Common Shares
--------------------------------------------------------------------------------
NCA -- --
NCB -- --
NCP 28,300 0.2%
NCO 24,900 0.3%
NQC -- --
NVC 41,400 0.2%
NUC 40,000 0.2%
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During the twelve-month reporting period, the following Funds repurchased common
shares at a weighted average price and a weighted average discount per common
share as shown in the accompanying table.
Weighted Average Weighted Average
Common Shares Price Per Share Discount Per Share
Fund Repurchased Repurchased Repurchased
--------------------------------------------------------------------------------
NCP 13,800 $ 10.39 18.88%
NCO 18,300 $ 10.22 19.64%
NVC 21,200 $ 10.23 19.12%
NUC 22,100 $ 10.65 19.10%
--------------------------------------------------------------------------------
As of February 28, 2010, the Funds' common share prices were trading at (-)
discounts to their common share NAVs as shown in the accompanying table.
Twelve-Month
2/28/10 Average
Fund (-)Discount (-)Discount
--------------------------------------------------------------------------------
NCA -5.56% -3.37%
NCB -7.00% -4.12%
NCP -10.52% -11.79%
NCO -8.42% -10.42%
NQC -8.68% -10.27%
NVC -4.63% -8.25%
NUC -6.45% -8.26%
--------------------------------------------------------------------------------
10 Nuveen Investments
NCA
Performance
OVERVIEW
----------------
Nuveen California
Municipal Value
Fund, Inc.
as of February 28, 2010
Fund Snapshot
--------------------------------------------------------------------------------
Common Share Price $9.00
--------------------------------------------------------------------------------
Common Share
Net Asset Value $9.53
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -5.56%
--------------------------------------------------------------------------------
Market Yield 5.07%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 7.79%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $240,598
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 17.66
--------------------------------------------------------------------------------
Modified Duration 7.34
--------------------------------------------------------------------------------
Average Annual Total Return
(Inception 10/07/87)
On Share Price On NAV
--------------------------------------------------------------------------------
1-Year 12.83% 12.85%
--------------------------------------------------------------------------------
5-Year 4.09% 3.80%
--------------------------------------------------------------------------------
10-Year 6.70% 5.63%
--------------------------------------------------------------------------------
Portfolio Composition
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/Limited 27.9%
--------------------------------------------------------------------------------
U.S. Guaranteed 23.8%
--------------------------------------------------------------------------------
Health Care 12.0%
--------------------------------------------------------------------------------
Water and Sewer 7.9%
--------------------------------------------------------------------------------
Utilities 7.2%
--------------------------------------------------------------------------------
Long-Term Care 5.7%
--------------------------------------------------------------------------------
Transportation 4.4%
--------------------------------------------------------------------------------
Other 11.1%
--------------------------------------------------------------------------------
CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS)
[PIE CHART]
AAA/U.S. Guaranteed 31%
AA 15%
A 22%
BBB 23%
BB or lower 1%
N/R 8%
2009-2010 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE
[BAR CHART]
Mar 0.0380
Apr 0.0380
May 0.0380
Jun 0.0380
Jul 0.0380
Aug 0.0380
Sep 0.0380
Oct 0.0380
Nov 0.0380
Dec 0.0380
Jan 0.0380
Feb 0.0380
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE CHART]
3/01/09 8.29
8.44
8.35
8.42
8.55
8.69
8.66
8.71
9.02
8.85
9.01
8.93
8.91
8.95
8.67
8.43
8.58
8.48
8.44
8.29
8.48
8.67
8.95
9.03
9.01
8.97
9.10
9.40
9.41
9.59
9.44
9.63
9.38
9.24
9.26
9.09
9.40
9.12
9.13
9.10
9.10
9.10
9.09
9.14
9.07
9.09
9.07
9.06
9.12
9.13
9.05
8.94
9.00
2/28/10 9.00
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34.9%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
Nuveen Investments 11
NCB
Performance
OVERVIEW
----------
Nuveen California
Municipal Value
Fund 2
as of February 28, 2010
Fund Snapshot
--------------------------------------------------------------------------------
Common Share Price $14.61
--------------------------------------------------------------------------------
Common Share
Net Asset Value $15.71
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -7.00%
--------------------------------------------------------------------------------
Market Yield 5.67%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 8.71%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $51,661
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 23.67
--------------------------------------------------------------------------------
Modified Duration 9.64
--------------------------------------------------------------------------------
Cumulative Total Return
(Inception 4/28/09)
--------------------------------------------------------------------------------
On Share Price On NAV
--------------------------------------------------------------------------------
Since Inception 1.80% 14.34%
--------------------------------------------------------------------------------
Portfolio Composition
(as a % of total investments)
--------------------------------------------------------------------------------
Health Care 22.1%
--------------------------------------------------------------------------------
Utilities 14.1%
--------------------------------------------------------------------------------
Tax Obligation/General 12.3%
--------------------------------------------------------------------------------
Tax Obligation/Limited 12.0%
--------------------------------------------------------------------------------
Housing/Single Family 11.0%
--------------------------------------------------------------------------------
Education and Civic Organizations 10.0%
--------------------------------------------------------------------------------
Water and Sewer 8.8%
--------------------------------------------------------------------------------
Consumer Staples 5.0%
--------------------------------------------------------------------------------
Other 4.7%
--------------------------------------------------------------------------------
CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS)
[PIE CHART]
AAA/U.S. Guaranteed 11%
AA 28%
A 44%
BBB 16%
N/R 1%
2009-2010 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE(2)
[BAR CHART]
Jun 0.0690
Jul 0.0690
Aug 0.0690
Sep 0.0690
Oct 0.0690
Nov 0.0690
Dec 0.0690
Jan 0.0690
Feb 0.0690
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE CHART]
5/01/09 14.95
15.00
14.90
15.02
14.80
14.85
14.87
14.00
13.25
13.40
13.57
14.30
14.08
14.24
14.35
13.94
14.33
14.57
14.66
14.55
14.85
14.72
14.69
14.73
14.55
14.54
14.64
14.56
14.65
14.30
14.50
14.34
14.40
14.48
14.58
14.66
14.67
14.63
14.59
14.48
14.60
14.56
14.57
14.61
2/28/10 14.61
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34.9%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(2) The Fund paid shareholders net ordinary income distributions in December
2009 of $0.0208 per share.
12 Nuveen Investments
NCP
Performance
OVERVIEW
----------
Nuveen California
Performance Plus
Municipal Fund, Inc.
as of February 28, 2010
Fund Snapshot
--------------------------------------------------------------------------------
Common Share Price $12.59
--------------------------------------------------------------------------------
Common Share
Net Asset Value $14.07
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -10.52%
--------------------------------------------------------------------------------
Market Yield 6.77%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 10.40%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $182,060
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 16.25
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 11.06
--------------------------------------------------------------------------------
Average Annual Total Return
(Inception 11/15/89)
--------------------------------------------------------------------------------
On Share Price On NAV
--------------------------------------------------------------------------------
1-Year 23.76% 18.20%
--------------------------------------------------------------------------------
5-Year 2.82% 3.55%
--------------------------------------------------------------------------------
10-Year 4.82% 6.18%
--------------------------------------------------------------------------------
Portfolio Composition
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/Limited 21.5%
--------------------------------------------------------------------------------
Transportation 18.0%
--------------------------------------------------------------------------------
Tax Obligation/General 14.2%
--------------------------------------------------------------------------------
Water and Sewer 9.6%
--------------------------------------------------------------------------------
U.S. Guaranteed 7.6%
--------------------------------------------------------------------------------
Utilities 7.5%
--------------------------------------------------------------------------------
Health Care 7.5%
--------------------------------------------------------------------------------
Education and Civic Organizations 6.6%
--------------------------------------------------------------------------------
Other 7.5%
--------------------------------------------------------------------------------
CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS)
[PIE CHART]
AAA/U.S. Guaranteed 25%
AA 22%
A 32%
BBB 15%
BB or Lower 2%
N/R 4%
2009-2010 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE
[BAR CHART]
Mar 0.0600
Apr 0.0600
May 0.0655
Jun 0.0655
Jul 0.0655
Aug 0.0655
Sep 0.0690
Oct 0.0690
Nov 0.0690
Dec 0.0710
Jan 0.0710
Feb 0.0710
COMMON SHARE PRICE PERFORMANCE - WEEKLY CLOSING PRICE
[LINE CHART]
3/01/09 10.49
10.05
10.12
10.21
10.25
10.41
10.34
10.56
10.97
11.09
11.18
11.24
11.28
11.57
11.49
11.19
11.31
11.23
11.11
11.05
11.40
11.53
11.81
11.92
11.84
12.04
12.26
12.69
12.87
13.03
13.25
13.22
13.25
12.59
12.86
12.70
12.74
12.34
12.33
12.45
12.59
12.56
12.38
12.34
12.39
12.51
12.44
12.41
12.47
12.56
12.50
12.48
12.59
2/28/10 12.59
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34.9%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
Nuveen Investments 13
NCO
Performance
OVERVIEWNuveen California Municipal Market Opportunity Fund, Inc.
as of February 28, 2010
Fund Snapshot
--------------------------------------------------------------------------------
Common Share Price $12.94
--------------------------------------------------------------------------------
Common Share
Net Asset Value $14.13
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -8.42%
--------------------------------------------------------------------------------
Market Yield 6.96%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 10.69%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $115,069
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 16.50
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 10.37
--------------------------------------------------------------------------------
Average Annual Total Return
(Inception 5/17/90)
--------------------------------------------------------------------------------
On Share Price On NAV
--------------------------------------------------------------------------------
1-Year 28.54% 16.25%
--------------------------------------------------------------------------------
5-Year 3.27% 3.26%
--------------------------------------------------------------------------------
10-Year 4.84% 6.10%
--------------------------------------------------------------------------------
Portfolio Composition
(as a % of total investments)
--------------------------------------------------------------------------------
Transportation 17.3%
--------------------------------------------------------------------------------
Tax Obligation/Limited 16.3%
--------------------------------------------------------------------------------
Water and Sewer 14.5%
--------------------------------------------------------------------------------
U.S. Guaranteed 14.1%
--------------------------------------------------------------------------------
Tax Obligation/General 12.9%
--------------------------------------------------------------------------------
Health Care 11.4%
--------------------------------------------------------------------------------
Other 13.5%
--------------------------------------------------------------------------------
[PIE CHART]
CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS)
[PIE CHART]
AAA/U.S. Guaranteed 27%
AA 20%
A 29%
BBB 11%
BB or Lower 1%
N/R 12%
2009-2010 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE
[BAR CHART]
Mar 0.0615
Apr 0.0615
May 0.0675
Jun 0.0675
Jul 0.0675
Aug 0.0675
Sep 0.0730
Oct 0.0730
Nov 0.0730
Dec 0.0750
Jan 0.0750
Feb 0.0750
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE CHART]
3/01/09 10.41
10.23
10.43
10.28
10.37
10.50
10.75
10.95
11.07
11.30
11.61
11.50
11.50
11.74
11.48
11.21
11.18
11.29
11.21
11.59
11.69
11.90
12.17
12.31
12.37
12.54
12.63
12.98
13.08
13.18
13.43
13.44
13.72
12.96
13.18
13.03
13.62
13.02
12.93
13.14
13.15
13.46
13.16
13.16
13.16
13.03
12.95
12.90
12.91
12.89
12.92
12.89
12.94
2/28/10 12.94
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34.9%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
14 Nuveen Investments
NQC
Performance
OVERVIEW
----------
Nuveen California
Investment Quality
Municipal Fund, Inc.
as of February 28, 2010
Fund Snapshot
--------------------------------------------------------------------------------
Common Share Price $12.84
--------------------------------------------------------------------------------
Common Share
Net Asset Value $14.06
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -8.68%
--------------------------------------------------------------------------------
Market Yield 6.82%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 10.48%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $190,883
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 17.35
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 9.40
--------------------------------------------------------------------------------
Average Annual Total Return
(Inception 11/20/90)
--------------------------------------------------------------------------------
On Share Price On NAV
--------------------------------------------------------------------------------
1-Year 23.89% 18.21%
--------------------------------------------------------------------------------
5-Year 2.85% 3.66%
--------------------------------------------------------------------------------
10-Year 5.16% 6.33%
--------------------------------------------------------------------------------
Portfolio Composition
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/Limited 24.0%
--------------------------------------------------------------------------------
Transportation 19.3%
--------------------------------------------------------------------------------
Tax Obligation/General 13.2%
--------------------------------------------------------------------------------
U.S. Guaranteed 11.5%
--------------------------------------------------------------------------------
Education and Civic Organizations 9.9%
--------------------------------------------------------------------------------
Health Care 8.2%
--------------------------------------------------------------------------------
Other 13.9%
--------------------------------------------------------------------------------
CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS)
[PIE CHART]
AAA/U.S. Guaranteed 20%
AA 22%
A 42%
BBB 14%
BB or Lower 1%
N/R 1%
2009-2010 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE
[BAR CHART]
Mar 0.0620
Apr 0.0620
May 0.0685
Jun 0.0685
Jul 0.0685
Aug 0.0685
Sep 0.0720
Oct 0.0720
Nov 0.0720
Dec 0.0730
Jan 0.0730
Feb 0.0730
COMMON SHARE PRICE PERFORMANCE - WEEKLY CLOSING PRICE
[LINE CHART]
3/1/09 10.66
10.01
10.03
10.19
10.36
10.40
10.36
10.69
11.22
11.21
11.65
11.46
11.51
11.73
11.50
11.38
11.23
11.25
11.18
11.30
11.36
11.63
11.93
11.91
12.10
12.23
12.43
12.92
13.01
13.21
13.27
13.50
13.41
12.65
12.84
12.70
13.25
12.74
12.74
12.85
12.86
12.80
12.78
12.76
12.83
12.88
12.80
12.79
12.89
12.89
13.00
12.71
12.84
2/28/10 12.84
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34.9%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
Nuveen Investments 15
NVC
Performance
OVERVIEW
----------
Nuveen California
Select Quality
Municipal Fund, Inc.
as of February 28, 2010
Fund Snapshot
--------------------------------------------------------------------------------
Common Share Price $13.61
--------------------------------------------------------------------------------
Common Share
Net Asset Value $14.27
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -4.63%
--------------------------------------------------------------------------------
Market Yield 6.97%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 10.71%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $329,544
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 17.00
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 11.13
--------------------------------------------------------------------------------
Average Annual Total Return
(Inception 5/22/91)
--------------------------------------------------------------------------------
On Share Price On NAV
--------------------------------------------------------------------------------
1-Year 35.21% 19.60%
--------------------------------------------------------------------------------
5-Year 4.64% 4.16%
--------------------------------------------------------------------------------
10-Year 6.37% 6.65%
--------------------------------------------------------------------------------
Portfolio Composition
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 17.0%
--------------------------------------------------------------------------------
Tax Obligation/Limited 15.5%
--------------------------------------------------------------------------------
Health Care 15.1%
--------------------------------------------------------------------------------
Tax Obligation/General 13.3%
--------------------------------------------------------------------------------
Transportation 11.9%
--------------------------------------------------------------------------------
Utilities 11.4%
--------------------------------------------------------------------------------
Water and Sewer 4.8%
--------------------------------------------------------------------------------
Other 11.0%
--------------------------------------------------------------------------------
CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS)
[PIE CHART]
AAA/U.S. Guaranteed 29%
AA 18%
A 32%
BBB 16%
BB or Lower 1%
N/R 4%
2009-2010 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE
[BAR CHART]
Mar 0.0655
Apr 0.0655
May 0.0710
Jun 0.0710
Jul 0.0710
Aug 0.0710
Sep 0.0750
Oct 0.0750
Nov 0.0750
Dec 0.0790
Jan 0.0790
Feb 0.0790
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE CHART]
3/1/2009 10.38
10.24
10.38
10.42
10.56
10.91
10.91
10.92
11.41
11.55
12.25
11.90
12.05
12.23
11.86
11.57
11.56
11.76
11.84
11.57
11.91
12.10
12.30
12.38
12.45
12.79
12.98
13.30
13.52
13.56
13.87
13.94
13.72
13.39
13.70
13.62
13.55
13.30
13.10
13.07
13.27
13.25
13.05
13.09
13.29
13.36
13.46
13.38
13.56
13.68
13.60
13.36
13.61
2/28/2010 13.61
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34.9%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
16 Nuveen Investments
NUC
Performance
OVERVIEW
----------
Nuveen California
Quality Income
Municipal Fund, Inc.
as of February 28, 2010
Fund Snapshot
--------------------------------------------------------------------------------
Common Share Price $13.64
--------------------------------------------------------------------------------
Common Share
Net Asset Value $14.58
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -6.45%
--------------------------------------------------------------------------------
Market Yield 7.04%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 10.81%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $320,561
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 15.26
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 10.63
--------------------------------------------------------------------------------
Average Annual Total Return
(Inception 11/20/91)
--------------------------------------------------------------------------------
On Share Price On NAV
--------------------------------------------------------------------------------
1-Year 30.22% 16.84%
--------------------------------------------------------------------------------
5-Year 3.75% 4.33%
--------------------------------------------------------------------------------
10-Year 5.75% 6.45%
--------------------------------------------------------------------------------
Portfolio Composition
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 23.9%
--------------------------------------------------------------------------------
Tax Obligation/Limited 18.7%
--------------------------------------------------------------------------------
Health Care 12.7%
--------------------------------------------------------------------------------
Tax Obligation/General 11.5%
--------------------------------------------------------------------------------
Transportation 8.7%
--------------------------------------------------------------------------------
Utilities 5.2%
--------------------------------------------------------------------------------
Education and Civic Organizations 4.9%
--------------------------------------------------------------------------------
Other 14.4%
--------------------------------------------------------------------------------
CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS)
[PIE CHART]
AAA/U.S. Guaranteed 40%
AA 19%
A 24%
BBB 13%
BB or Lower 1%
N/R 3%
2009-2010 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE
[BAR CHART]
Mar 0.0655
Apr 0.0655
May 0.0735
Jun 0.0735
Jul 0.0735
Aug 0.0735
Sep 0.0750
Oct 0.0750
Nov 0.0750
Dec 0.0800
Jan 0.0800
Feb 0.0800
COMMON SHARE PRICE PERFORMANCE - WEEKLY CLOSING PRICE
[LINE CHART]
3/1/09 11.20
10.74
10.90
11.09
11.01
11.40
11.27
11.52
11.84
11.90
12.54
12.30
12.35
12.43
12.35
12.00
11.96
11.88
11.88
12.00
12.25
12.57
12.85
13.00
13.23
13.60
13.45
13.65
13.78
14.08
14.09
14.22
14.37
13.48
14.10
13.95
14.10
13.55
13.43
13.41
13.64
13.62
13.50
13.45
13.52
13.57
13.45
13.48
13.60
13.61
13.75
13.54
13.64
2/28/10 13.64
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34.9%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
Nuveen Investments 17
NCA
NCP
NCO
----------
SHAREHOLDER MEETING REPORT
The annual meeting of shareholders was held in the offices of Nuveen Investments
on November 30, 2009; at this meeting the shareholders were asked to vote on the
election of Board Members, the elimination of Fundamental Investment Policies
and the approval of new Fundamental Investment Policies. The meeting for NCP,
NCO, NQC, NVC and NUC was subsequently adjourned to January 12, 2010, adjourned
again to March 23, 2010, and additionally adjourned to March 30, 2010.
NCA | NCP | NCO
------------------------------------------------------------------------------------------------------------------------------------
Common and Common and
Preferred Preferred Preferred Preferred
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
------------------------------------------------------------------------------------------------------------------------------------
TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL
POLICIES RELATING TO INVESTMENTS IN MUNICIPAL
SECURITIES AND BELOW INVESTMENT GRADE SECURITIES.
For -- 6,679,829 805 3,809,354 655
Against -- 787,152 122 151,433 104
Abstain -- 234,762 -- 132,546 --
Broker Non-Votes -- 1,636,570 800 1,227,082 397
------------------------------------------------------------------------------------------------------------------------------------
Total -- 9,338,313 1,727 5,320,415 1,156
====================================================================================================================================
TO APPROVE THE NEW FUNDAMENTAL POLICY
RELATING TO INVESTMENTS IN MUNICIPAL SECURITIES.
For -- 6,785,306 805 3,828,139 655
Against -- 724,147 122 123,085 102
Abstain -- 192,290 -- 142,109 2
Broker Non-Votes -- 1,636,570 800 1,227,082 397
------------------------------------------------------------------------------------------------------------------------------------
Total -- 9,338,313 1,727 5,320,415 1,156
====================================================================================================================================
To approve the elimination of the fundamental
policy relating to commodities.
For -- 6,517,358 832 3,738,774 647
Against -- 903,972 95 181,029 111
Abstain -- 280,413 -- 173,530 1
Broker Non-Votes -- 1,636,570 800 1,227,082 397
------------------------------------------------------------------------------------------------------------------------------------
Total -- 9,338,313 1,727 5,320,415 1,156
====================================================================================================================================
To approve the new fundamental policy
relating to commodities.
For -- 6,507,009 834 3,761,015 647
Against -- 907,778 93 180,763 111
Abstain -- 286,956 -- 151,555 1
Broker Non-Votes -- 1,636,570 800 1,227,082 397
------------------------------------------------------------------------------------------------------------------------------------
Total -- 9,338,313 1,727 5,320,415 1,156
====================================================================================================================================
To approve the elimination of the fundamental
policies relating to derivatives and short sales.
For -- 6,591,155 805 3,765,942 647
Against -- 823,466 122 174,554 111
Abstain -- 287,122 -- 152,837 1
Broker Non-Votes -- 1,636,570 800 1,227,082 397
------------------------------------------------------------------------------------------------------------------------------------
Total -- 9,338,313 1,727 5,320,415 1,156
====================================================================================================================================
TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL
POLICIES PROHIBITING INVESTMENT IN OTHER
INVESTMENT COMPANIES.
For -- 6,642,396 805 3,760,044 650
Against -- 766,269 122 176,265 109
Abstain -- 293,078 -- 157,024 --
Broker Non-Votes -- 1,636,570 800 1,227,082 397
------------------------------------------------------------------------------------------------------------------------------------
Total -- 9,338,313 1,727 5,320,415 1,156
====================================================================================================================================
Nuveen Investments 18
NCA | NCP | NCO
------------------------------------------------------------------------------------------------------------------------------------
Common and Common and
Preferred Preferred Preferred Preferred
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
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS REACHED
AS FOLLOWS:
John P. Amboian
For -- 8,793,549 1,259 5,153,327 745
Withhold -- 537,224 203 138,963 168
------------------------------------------------------------------------------------------------------------------------------------
Total -- 9,330,773 1,462 5,292,290 913
====================================================================================================================================
Robert P. Bremner
For 20,515,799 8,847,737 1,259 5,148,747 745
Withhold 897,687 483,036 203 143,543 168
------------------------------------------------------------------------------------------------------------------------------------
Total 21,413,486 9,330,773 1,462 5,292,290 913
====================================================================================================================================
Jack B. Evans
For 20,947,095 8,847,625 1,259 5,157,229 745
Withhold 466,391 483,148 203 135,061 168
------------------------------------------------------------------------------------------------------------------------------------
Total 21,413,486 9,330,773 1,462 5,292,290 913
====================================================================================================================================
William C. Hunter
For -- -- 1,259 -- 745
Withhold -- -- 203 -- 168
------------------------------------------------------------------------------------------------------------------------------------
Total -- -- 1,462 -- 913
David J. Kundert
For -- 8,844,545 1,259 5,148,747 745
Withhold -- 486,228 203 143,543 168
------------------------------------------------------------------------------------------------------------------------------------
Total -- 9,330,773 1,462 5,292,290 913
====================================================================================================================================
William J. Schneider
For 20,933,602 -- 1,259 -- 745
Withhold 479,884 -- 203 -- 168
------------------------------------------------------------------------------------------------------------------------------------
Total 21,413,486 -- 1,462 -- 913
====================================================================================================================================
Judith M. Stockdale
For -- 8,846,253 1,259 5,151,299 745
Withhold -- 484,520 203 140,991 168
------------------------------------------------------------------------------------------------------------------------------------
Total -- 9,330,773 1,462 5,292,290 913
====================================================================================================================================
Carole E. Stone
For -- 8,833,373 1,259 5,151,299 745
Withhold -- 497,400 203 140,991 168
------------------------------------------------------------------------------------------------------------------------------------
Total -- 9,330,773 1,462 5,292,290 913
====================================================================================================================================
Terence J. Toth
For -- 8,850,825 1,259 5,157,675 745
Withhold -- 479,948 203 134,615 168
------------------------------------------------------------------------------------------------------------------------------------
Total -- 9,330,773 1,462 5,292,290 913
====================================================================================================================================
Nuveen Investments 19
NQC
NVC
NUC
----------
Shareholder Meeting Report (continued)
NQC | NVC | NUC
------------------------------------------------------------------------------------------------------------------------------------
Common and Common and Common and
Preferred Preferred Preferred Preferred Preferred Preferred
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
------------------------------------------------------------------------------------------------------------------------------------
TO APPROVE THE ELIMINATION OF
THE FUNDAMENTAL POLICIES RELATING
TO INVESTMENTS IN MUNICIPAL
SECURITIES AND BELOW INVESTMENT
GRADE SECURITIES.
For 6,607,687 931 11,433,694 2,117 10,631,756 2,010
Against 350,154 72 734,607 473 548,747 406
Abstain 303,960 3 493,728 19 513,063 25
Broker Non-Votes 2,176,407 793 3,709,309 1,156 3,305,246 897
------------------------------------------------------------------------------------------------------------------------------------
Total 9,438,208 1,799 16,371,338 3,765 14,998,812 3,338
====================================================================================================================================
TO APPROVE THE NEW FUNDAMENTAL
POLICY RELATING TO INVESTMENTS
IN MUNICIPAL SECURITIES.
For 6,583,916 933 11,467,660 2,117 10,617,081 2,010
Against 326,653 72 687,603 473 527,805 402
Abstain 351,232 1 506,766 19 548,680 29
Broker Non-Votes 2,176,407 793 3,709,309 1,156 3,305,246 897
------------------------------------------------------------------------------------------------------------------------------------
Total 9,438,208 1,799 16,371,338 3,765 14,998,812 3,338
====================================================================================================================================
TO APPROVE THE ELIMINATION OF
THE FUNDAMENTAL POLICY RELATING
TO COMMODITIES.
For 6,515,066 933 11,342,458 2,120 10,522,870 2,018
Against 350,471 72 731,358 466 614,094 390
Abstain 396,264 1 588,213 23 556,602 32
Broker Non-Votes 2,176,407 793 3,709,309 1,156 3,305,246 898
------------------------------------------------------------------------------------------------------------------------------------
Total 9,438,208 1,799 16,371,338 3,765 14,998,812 3,338
====================================================================================================================================
TO APPROVE THE NEW FUNDAMENTAL
POLICY RELATING TO COMMODITIES.
For 6,518,338 931 11,308,805 2,120 10,533,434 2,014
Against 342,852 72 733,825 466 600,283 394
Abstain 400,611 3 619,399 23 559,849 32
Broker Non-Votes 2,176,407 793 3,709,309 1,156 3,305,246 898
------------------------------------------------------------------------------------------------------------------------------------
Total 9,438,208 1,799 16,371,338 3,765 14,998,812 3,338
====================================================================================================================================
TO APPROVE THE ELIMINATION OF
THE FUNDAMENTAL POLICIES RELATING
TO DERIVATIVES AND SHORT SALES.
For 6,536,139 931 11,340,940 2,120 10,512,376 2,019
Against 342,354 72 738,372 466 606,826 392
Abstain 383,308 3 582,717 23 574,364 29
Broker Non-Votes 2,176,407 793 3,709,309 1,156 3,305,246 898
------------------------------------------------------------------------------------------------------------------------------------
Total 9,438,208 1,799 16,371,338 3,765 14,998,812 3,338
====================================================================================================================================
TO APPROVE THE ELIMINATION OF THE
FUNDAMENTAL POLICIES PROHIBITING
INVESTMENT IN OTHER INVESTMENT
COMPANIES.
For 6,605,279 937 11,361,660 2,118 10,511,983 2,018
Against 336,619 64 761,098 468 633,674 394
Abstain 319,903 5 539,271 23 547,909 28
Broker Non-Votes 2,176,407 793 3,709,309 1,156 3,305,246 898
------------------------------------------------------------------------------------------------------------------------------------
Total 9,438,208 1,799 16,371,338 3,765 14,998,812 3,338
====================================================================================================================================
Nuveen Investments 20
NQC | NVC | NUC
------------------------------------------------------------------------------------------------------------------------------------
Common and Common and Common and
Preferred Preferred Preferred Preferred Preferred Preferred
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
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS
REACHED AS FOLLOWS:
John P. Amboian
For 9,101,465 1,608 15,541,849 2,257 14,404,438 2,027
Withhold 317,430 149 781,790 753 566,653 611
------------------------------------------------------------------------------------------------------------------------------------
Total 9,418,895 1,757 16,323,639 3,010 14,971,091 2,638
====================================================================================================================================
Robert P. Bremner
For 9,091,708 1,608 15,525,853 2,257 14,398,039 2,041
Withhold 327,187 149 797,786 753 573,052 597
------------------------------------------------------------------------------------------------------------------------------------
Total 9,418,895 1,757 16,323,639 3,010 14,971,091 2,638
====================================================================================================================================
Jack B. Evans
For 9,062,585 1,608 15,501,746 2,257 14,403,919 2,041
Withhold 356,310 149 821,893 753 567,172 597
------------------------------------------------------------------------------------------------------------------------------------
Total 9,418,895 1,757 16,323,639 3,010 14,971,091 2,638
====================================================================================================================================
William C. Hunter
For -- 1,608 -- 2,257 -- 2,029
Withhold -- 149 -- 753 -- 609
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,757 -- 3,010 -- 2,638
====================================================================================================================================
David J. Kundert
For 9,099,990 1,608 15,530,368 2,257 14,390,794 2,041
Withhold 318,905 149 793,271 753 580,297 597
------------------------------------------------------------------------------------------------------------------------------------
Total 9,418,895 1,757 16,323,639 3,010 14,971,091 2,638
====================================================================================================================================
William J. Schneider
For -- 1,608 -- 2,255 -- 2,029
Withhold -- 149 -- 755 -- 609
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,757 -- 3,010 -- 2,638
====================================================================================================================================
Judith M. Stockdale
For 9,114,917 1,608 15,521,218 2,257 14,402,811 2,029
Withhold 303,978 149 802,421 753 568,280 609
------------------------------------------------------------------------------------------------------------------------------------
Total 9,418,895 1,757 16,323,639 3,010 14,971,091 2,638
====================================================================================================================================
Carole E. Stone
For 9,115,417 1,608 15,510,547 2,257 14,391,864 2,041
Withhold 303,478 149 813,092 753 579,227 597
------------------------------------------------------------------------------------------------------------------------------------
Total 9,418,895 1,757 16,323,639 3,010 14,971,091 2,638
====================================================================================================================================
Terence J. Toth
For 9,057,578 1,608 15,492,676 2,257 14,394,406 2,029
Withhold 361,317 149 830,963 753 576,685 609
------------------------------------------------------------------------------------------------------------------------------------
Total 9,418,895 1,757 16,323,639 3,010 14,971,091 2,638
====================================================================================================================================
Nuveen Investments 21
REPORT OF INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM
THE BOARD OF DIRECTORS/TRUSTEES AND SHAREHOLDERS
NUVEEN CALIFORNIA MUNICIPAL VALUE FUND, INC.
NUVEEN CALIFORNIA MUNICIPAL VALUE FUND 2
NUVEEN CALIFORNIA PERFORMANCE PLUS MUNICIPAL FUND, INC.
NUVEEN CALIFORNIA MUNICIPAL MARKET OPPORTUNITY FUND, INC.
NUVEEN CALIFORNIA INVESTMENT QUALITY MUNICIPAL FUND, INC.
NUVEEN CALIFORNIA SELECT QUALITY MUNICIPAL FUND, INC.
NUVEEN CALIFORNIA QUALITY INCOME MUNICIPAL FUND, INC.
We have audited the accompanying statement of assets and liabilities, including
the portfolio of investments, of Nuveen California Municipal Value Fund, Inc.,
Nuveen California Municipal Value Fund 2, Nuveen California Performance Plus
Municipal Fund, Inc., Nuveen California Municipal Market Opportunity Fund, Inc.,
Nuveen California Investment Quality Municipal Fund, Inc., Nuveen California
Select Quality Municipal Fund, Inc., and Nuveen California Quality Income
Municipal Fund, Inc. (the Funds), as of February 28, 2010, and the related
statements of operations, changes in net assets, and the financial highlights
for each of the periods indicated therein. These financial statements and
financial highlights are the responsibility of the Funds' management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. We were
not engaged to perform an audit of the Funds' internal control over financial
reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Funds' internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights, assessing the accounting principles used
and significant estimates made by management, and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of February 28, 2010, by correspondence with the custodian
and brokers or by other appropriate auditing procedures where replies from
brokers were not received. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial positions of
Nuveen California Municipal Value Fund, Inc., Nuveen California Municipal Value
Fund 2, Nuveen California Performance Plus Municipal Fund, Inc., Nuveen
California Municipal Market Opportunity Fund, Inc., Nuveen California Investment
Quality Municipal Fund, Inc., Nuveen California Select Quality Municipal Fund,
Inc., and Nuveen California Quality Income Municipal Fund, Inc. at February 28,
2010, and the results of their operations, the changes in their net assets, and
the financial highlights for each of the periods indicated therein in conformity
with US generally accepted accounting principles.
/s/ Ernst & Young
Chicago, Illinois April 23,
2010
Nuveen Investments 22
NCA
----------
Nuveen California Municipal Value Fund, Inc.
PORTFOLIO OF INVESTMENTS
February 28, 2010
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 3.7% (3.7% OF TOTAL INVESTMENTS)
$ 465 California County Tobacco Securitization Agency, 6/15 at 100.00 BBB $ 437,351
Tobacco Settlement Asset-Backed Bonds,
Sonoma County Tobacco Securitization Corporation,
Series 2005, 4.250%, 6/01/21
2,000 Golden State Tobacco Securitization Corporation, 6/17 at 100.00 BBB 1,474,740
California, Enhanced Tobacco Settlement
Asset-Backed Bonds, Series 2007A-1, 5.750%, 6/01/47
11,010 Golden State Tobacco Securitization Corporation, 6/22 at 100.00 BBB 7,005,002
California, Enhanced Tobacco Settlement
Asset-Backed Bonds, Series 2007A-2, 0.000%, 6/01/37
------------------------------------------------------------------------------------------------------------------------
13,475 Total Consumer Staples 8,917,093
------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 0.8% (0.8% OF
TOTAL INVESTMENTS)
140 California Educational Facilities Authority, Revenue 10/15 at 100.00 A3 133,769
Bonds, 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 99,533
125 5.000%, 11/01/25 11/15 at 100.00 A2 127,404
1,500 California Statewide Community Development Authority, 6/10 at 102.00 N/R 1,487,190
Certificates of Participation, San Diego
Space and Science Foundation, Series 1996, 7.500%,
12/01/26
------------------------------------------------------------------------------------------------------------------------
1,860 Total Education and Civic Organizations 1,847,896
------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 12.1% (12.0% OF TOTAL INVESTMENTS)
310 California Health Facilities Financing Authority, 4/16 at 100.00 A+ 295,405
Revenue Bonds, Kaiser Permanante System,
Series 2006, 5.000%, 4/01/37
5,365 California Health Facilities Financing Authority, 11/16 at 100.00 Aa3 5,086,074
Revenue Bonds, Sutter Health, Series 2007A,
5.250%, 11/15/46 (UB)
1,450 California Municipal Financing Authority, 2/17 at 100.00 Baa2 1,333,855
Certificates of Participation, Community Hospitals
of Central California, Series 2007, 5.250%, 2/01/27
560 California Statewide Communities Development 3/15 at 100.00 A 522,911
Authority, Revenue Bonds, Adventist Health
System West, Series 2005A, 5.000%, 3/01/35
3,000 California Statewide Community Development Authority, 7/17 at 100.00 AAA 3,057,840
Insured Health Facility Revenue Bonds,
Catholic Healthcare West, Series 2008K, 5.500%,
7/01/41 - AGC Insured
990 California Statewide Community Development Authority, 3/16 at 100.00 A+ 925,076
Revenue Bonds, Kaiser Permanante
System, Series 2006, 5.000%, 3/01/41
1,460 California Statewide Community Development Authority, 8/16 at 100.00 A+ 1,464,687
Revenue Bonds, Kaiser Permanente
System, Series 2001C, 5.250%, 8/01/31
2,710 California Statewide Community Development Authority, No Opt. Call A- 2,705,420
Revenue Bonds, Sherman Oaks Health
System, Series 1998A, 5.000%, 8/01/22 - AMBAC Insured
3,390 California Statewide Community Development Authority, 11/15 at 100.00 Aa3 3,102,020
Revenue Bonds, Sutter Health, Series
2005A, 5.000%, 11/15/43
1,525 Loma Linda, California, Hospital Revenue Bonds, Loma 12/17 at 100.00 BBB 1,684,485
Linda University Medical Center, Series
2008A, 8.250%, 12/01/38
2,940 Palomar Pomerado Health, California, Certificates of 11/19 at 100.00 Baa2 3,037,020
Participation, Series 2009, 6.750%, 11/01/39
3,000 Santa Clara County Financing Authority, California, 8/17 at 100.00 A+ 3,083,580
Insured Revenue Bonds, El Camino Hospital,
Series 2007A, 5.750%, 2/01/41 - AMBAC Insured
1,000 Sierra View Local Health Care District, California, 9/17 at 100.00 N/R 904,700
Revenue Bonds, Series 2007, 5.250%, 7/01/37
1,730 West Contra Costa Healthcare District, California, 7/14 at 100.00 A+ 1,813,403
Certificates of Participation, Series 2004,
5.375%, 7/01/21 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------
29,430 Total Health Care 29,016,476
------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.6% (1.6% OF TOTAL INVESTMENTS)
2,445 California Statewide Community Development Authority, 7/10 at 101.00 N/R 2,103,262
Multifamily Housing Revenue Bonds,
Harbor City Lights, Series 1999Y, 6.650%, 7/01/39
(Alternative Minimum Tax)
435 Riverside County, California, Subordinate Lien Mobile 4/10 at 100.00 N/R 401,127
Home Park Revenue Bonds, Bravo Mobile
Home Park Project, Series 1999B, 6.500%, 3/20/29
Nuveen Investments 23
NCA | Nuveen California Municipal Value Fund, Inc. (continued)
| Portfolio of Investments February 28, 2010
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY (continued)
$ 1,400 San Dimas Housing Authority, California, Mobile Home Park 7/10 at 100.00 N/R $ 1,264,200
Revenue Bonds, Charter Oak Mobile Home Estates Acquisition
Project, Series 1998A, 5.700%, 7/01/28
------------------------------------------------------------------------------------------------------------------------------------
4,280 Total Housing/Multifamily 3,768,589
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 2.3% (2.3% OF TOTAL INVESTMENTS)
250 California Housing Finance Agency, Home Mortgage Revenue 2/16 at 100.00 AA- 268,803
Bonds, Series 2006H, 5.750%, 8/01/30 - FGIC Insured
(Alternative Minimum Tax)
4,390 California Housing Finance Agency, Home Mortgage Revenue 2/16 at 100.00 AA- 3,588,123
Bonds, Series 2007M, 4.700%, 8/01/36 (Alternative Minimum
Tax)
2,125 California State Department of Veteran Affairs, Home Purchase 12/16 at 100.00 Aa2 1,805,676
Revenue Bonds, Series 2007, 5.000%, 12/01/42 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
6,765 Total Housing/Single Family 5,662,602
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.4% (0.4% OF TOTAL INVESTMENTS)
1,000 California Pollution Control Financing Authority, Solid Waste 1/16 at 102.00 BBB 990,510
Disposal Revenue Bonds, Waste Management Inc., Series
2002A, 5.000%, 1/01/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 5.7% (5.7% 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- 1,852,146
2,130 5.600%, 8/15/34 8/14 at 100.00 A- 2,047,761
2,270 ABAG Finance Authority for Non-Profit Corporations, 4/10 at 100.00 BBB- 2,280,964
California, Certificates of Participation, American Baptist
Homes of the West, Series 1997A, 5.750%, 10/01/17
4,000 ABAG Finance Authority for Non-Profit Corporations, 8/18 at 100.00 A- 3,857,440
California, Health Facility Revenue Bonds, The Institute on
Aging, Series 2008A, 5.650%, 8/15/38
2,230 California Statewide Community Development Authority, 4/10 at 100.50 BBB 2,245,342
Certificates of Participation, Internext Group, Series
1999, 5.375%, 4/01/17
1,500 Riverside County Public Financing Authority, California, 5/10 at 100.50 BB+ 1,479,315
Certificates of Participation, Air Force Village West,
Series 1999, 5.750%, 5/15/19
------------------------------------------------------------------------------------------------------------------------------------
13,980 Total Long-Term Care 13,762,968
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 2.3% (2.3% OF TOTAL INVESTMENTS)
500 California, General Obligation Bonds, Series 2004, 5.000%, 2/14 at 100.00 A- 520,885
2/01/20
1,000 California, General Obligation Bonds, Various Purpose Series 11/19 at 100.00 A- 1,034,770
2009, 6.000%, 11/01/39
1,500 Los Angeles Unified School District, California, General 7/16 at 100.00 AA- 1,578,120
Obligation Bonds, Series 2006F, 5.000%, 7/01/24 - FGIC
Insured
2,000 Puerto Rico, General Obligation and Public Improvement Bonds, No Opt. Call A 2,112,980
Series 2001A, 5.500%, 7/01/20 - NPFG Insured
270 Roseville Joint Union High School District, Placer County, 8/15 at 100.00 AA- 279,720
California, General Obligation Bonds, Series 2006B, 5.000%,
8/01/27 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
5,270 Total Tax Obligation/General 5,526,475
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 28.0% (27.9% OF TOTAL INVESTMENTS)
1,000 Artesia Redevelopment Agency, California, Tax Allocation 6/15 at 100.00 BBB+ 926,180
Revenue 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 BBB- 2,848,350
1,000 5.625%, 10/01/33 - RAAI Insured 10/13 at 100.00 BBB- 902,300
2,400 Calexico Community Redevelopment Agency, California, Tax 8/13 at 102.00 BBB+ 2,269,968
Allocation Bonds, Merged Central Business and Residential
District Project, Series 2003C, 5.000%, 8/01/28 - AMBAC
Insured
1,000 California State Public Works Board, Lease Revenue Bonds, 10/19 at 100.00 BBB+ 999,940
Various Capital Projects, Series 2009G-1, 5.750%, 10/01/30
2,000 California State Public Works Board, Lease Revenue Bonds, 11/19 at 100.00 BBB+ 2,069,840
Various Capital Projects, Series 2009I-1, 6.375%, 11/01/34
24 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 340 Capistrano Unified School District, Orange County, 9/15 at 100.00 A $ 330,429
California, 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 BBB 869,757
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:
15,830 5.000%, 6/01/35 - FGIC Insured 6/15 at 100.00 BBB+ 13,969,658
1,280 5.000%, 6/01/35 - FGIC Insured 6/15 at 100.00 AAA 1,234,534
Irvine, California, Unified School District, Community
Facilities District Special Tax Bonds, Series 2006A:
150 5.000%, 9/01/26 9/16 at 100.00 N/R 133,839
355 5.125%, 9/01/36 9/16 at 100.00 N/R 297,582
2,500 Kern County Board of Education, California, Certificates of 6/16 at 100.00 A 2,510,475
Participation, Series 2006A, 5.000%, 6/01/31 - NPFG Insured
615 Los Angeles Community Redevelopment Agency, California, Lease 9/15 at 100.00 A2 534,128
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 2,781,735
Participation, Pooled Financing Program, Regionalized
Business Services Corporation, Series 2003A, 5.000%,
9/01/28 - AGM Insured
2,975 Milpitas, California, Local Improvement District 20 Limited 3/10 at 103.00 N/R 3,053,005
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 N/R 1,011,487
1,145 5.250%, 9/01/23 - AMBAC Insured 9/14 at 100.00 N/R 1,090,361
1,255 5.250%, 9/01/24 - AMBAC Insured 9/14 at 100.00 N/R 1,184,356
420 Oakland Redevelopment Agency, California, Subordinate Lien 3/13 at 100.00 A 433,705
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, 8/10 at 100.00 AAA 8,033,440
California, Special Tax Bonds, Community Facilities District
90-1, Series 1999, 5.800%, 8/01/29 - AGM Insured
290 Rialto Redevelopment Agency, California, Tax Allocation 9/15 at 100.00 A- 255,101
Bonds, Merged Project Area, Series 2005A, 5.000%, 9/01/35 -
SYNCORA GTY Insured
5,000 Riverside County Redevelopment Agency, California, Tax 10/14 at 100.00 A- 4,341,500
Allocation Housing Bonds, Series 2004A, 5.000%, 10/01/37 -
SYNCORA GTY Insured
360 Roseville, California, Certificates of Participation, Public 8/13 at 100.00 AA- 360,212
Facilities, Series 2003A, 5.000%, 8/01/25 - AMBAC Insured
3,130 San Francisco Redevelopment Agency, California, Lease Revenue 7/11 at 102.00 AA- 3,331,509
Bonds, Moscone Convention Center, Series 2004, 5.250%,
7/01/23 - AMBAC Insured
2,750 San Jose Financing Authority, California, Lease Revenue 9/11 at 100.00 AA+ 2,903,010
Refunding Bonds, Convention Center Project, Series 2001F,
5.000%, 9/01/20 - NPFG Insured
625 San Mateo Union High School District, San Mateo County, 12/17 at 100.00 N/R 574,888
California, Certificates of Participation, Phase 1, Series
2007A, 5.000%, 12/15/30 - AMBAC Insured
380 Shafter Joint Powers Financing Authority, California, Lease 7/10 at 100.00 BBB+ 381,265
Revenue Bonds, Community Correctional Facility Acquisition
Project, Series 1997A, 5.950%, 1/01/11
1,000 Simi Valley, California, Certificates of Participation, 9/14 at 100.00 A+ 1,023,490
Series 2004, 5.000%, 9/01/24 - AMBAC Insured
1,500 Tehachapi Redevelopment Agency, California, Tax Allocation No Opt. Call BBB 1,240,305
Bonds, Series 2007, 5.250%, 12/01/37 - RAAI Insured
1,925 Travis Unified School District, Solano County, California, 9/16 at 100.00 N/R 1,829,424
Certificates of Participation, Series 2006, 5.000%, 9/01/26
- FGIC Insured
2,500 Ventura County Superintendent of Schools, California, 12/11 at 100.00 AA- 2,560,400
Certificates Participation, Series 2003, 5.000%, 12/01/27 -
AMBAC Insured
1,115 Vista Joint Powers Financing Authority, California, Special 3/10 at 100.00 N/R 1,050,363
Tax Lease Revenue Refunding Bonds, Community Facilities
District 90-2, Series 1997A, 5.875%, 9/01/20
------------------------------------------------------------------------------------------------------------------------------------
70,640 Total Tax Obligation/Limited 67,336,536
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 25
NCA | Nuveen California Municipal Value Fund, Inc. (continued)
| Portfolio of Investments February 28, 2010
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
---------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 4.4% (4.4% OF TOTAL INVESTMENTS)
$ 2,500 Bay Area Toll Authority, California, Revenue Bonds, San 4/16 at 100.00 AA $ 2,535,200
Francisco Bay Area Toll Bridge, Series 2006F, 5.000%,
4/01/31 (UB)
5,500 Foothill/Eastern Transportation Corridor Agency, California, 1/14 at 101.00 BBB- 5,404,355
Toll Road Revenue Refunding Bonds, Series 1999, 5.875%,
1/15/27
1,250 Fresno, California, Airport Revenue Bonds, Series 2000A, 7/10 at 101.00 AAA 1,258,275
5.500%, 7/01/30 - AGM Insured
220 Palm Springs Financing Authority, California, Palm Springs 7/14 at 102.00 N/R 192,522
International Airport Revenue Bonds, Series 2006, 5.550%,
7/01/28 (Alternative Minimum Tax)
1,245 San Francisco Airports Commission, California, Revenue Bonds, 5/11 at 100.00 A1 1,206,455
San Francisco International Airport, Second Series 1999,
Issue 23A, 5.000%, 5/01/30 - FGIC Insured (Alternative
Minimum Tax)
---------------------------------------------------------------------------------------------------------------------------------
10,715 Total Transportation 10,596,807
---------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 23.8% (23.8% OF TOTAL INVESTMENTS) (4)
Burbank Redevelopment Agency, California, Tax Allocation Bonds,
Golden State Redevelopment Project, Series 2003:
1,700 5.625%, 12/01/28 (Pre-refunded 12/01/13) - FGIC Insured 12/13 at 100.00 N/R (4) 1,975,859
5,010 5.750%, 12/01/33 (Pre-refunded 12/01/13) - FGIC Insured 12/13 at 100.00 N/R (4) 5,845,969
2,400 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 N/R (4) 2,562,408
Settlement Asset-Backed Bonds, Sonoma County Tobacco Funding
Corporation, Series 2002B, 5.500%, 6/01/30 (Pre-refunded
6/01/12)
3,300 California Department of Water Resources, Power Supply Revenue 5/12 at 101.00 Aaa 3,652,638
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) 3,196,925
Pooled College and University Projects, Series 2000C,
6.750%, 6/01/30 (ETM)
2,845 California, General Obligation Bonds, Series 2004, 5.250%, 4/14 at 100.00 AAA 3,326,061
4/01/34 (Pre-refunded 4/01/14)
2,065 Contra Costa County, California, GNMA Mortgage-Backed No Opt. Call AAA 2,810,795
Securities Program Home Mortgage Revenue Bonds, Series 1988,
8.250%, 6/01/21 (Alternative Minimum Tax) (ETM)
2,105 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 2,343,623
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.250%, 6/01/33 (Pre-refunded 6/01/13)
685 Los Angeles Community Redevelopment Agency, California, Tax 1/10 at 100.00 BBB (4) 691,062
Allocation Refunding Bonds, Central Business District
Redevelopment Project, Series 1987G, 6.750%, 7/01/10 (ETM)
5,000 Orange County Sanitation District, California, Certificates of 8/13 at 100.00 AAA 5,738,950
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 7,038,117
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 3,633,663
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 11,307,052
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) 3,142,050
Loan Note, Series 1999A, 6.500%, 10/01/24 (Pre-refunded
10/01/10)
---------------------------------------------------------------------------------------------------------------------------------
63,505 Total U.S. Guaranteed 57,265,172
---------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 7.2% (7.2% OF TOTAL INVESTMENTS)
2,445 California Statewide Community Development Authority, 6/10 at 100.00 N/R 2,233,948
Certificates of Participation Refunding, Rio Bravo Fresno
Project, Series 1999A, 6.500%, 12/01/18 (5)
1,800 Long Beach Bond Finance Authority, California, Natural Gas No Opt. Call A 1,740,240
Purchase Revenue Bonds, Series 2007A, 5.500%, 11/15/37
21,500 Merced Irrigation District, California, Certificates of 9/16 at 64.56 A 9,353,145
Participation, Water Hydroelectric Series 2008B, 0.000%,
9/01/23
605 Merced Irrigation District, California, Electric System Revenue 9/15 at 100.00 N/R 542,842
Bonds, Series 2005, 5.125%, 9/01/31 - SYNCORA GTY Insured
3,470 Puerto Rico Industrial, Tourist, Educational, Medical and 6/10 at 101.00 Baa3 3,503,208
Environmental Control Facilities Financing Authority,
Co-Generation Facility Revenue Bonds, Series 2000A, 6.625%,
6/01/26 (Alternative Minimum Tax)
---------------------------------------------------------------------------------------------------------------------------------
29,820 Total Utilities 17,373,383
---------------------------------------------------------------------------------------------------------------------------------
26 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 7.9% (7.9% OF TOTAL INVESTMENTS)
$ 1,480 California Department of Water Resources, Water System Revenue 6/15 at 100.00 AAA $ 1,604,083
Bonds, Central Valley Project, Series 2005AD, 5.000%,
12/01/22 - AGM Insured
1,500 Castaic Lake Water Agency, California, Certificates of 8/16 at 100.00 AA- 1,478,295
Participation, Series 2006C, 5.000%, 8/01/36 - NPFG Insured
410 Healdsburg Public Financing Authority, California, Wastewater 4/16 at 100.00 AA- 405,851
Revenue Bonds, Series 2006, 5.000%, 4/01/36 - NPFG Insured
500 Los Angeles County Sanitation Districts Financing Authority, 10/13 at 100.00 AAA 528,855
California, Senior Revenue Bonds, Capital Projects, Series
2003A, 5.000%, 10/01/23 - AGM Insured
5,000 Los Angeles Department of Water and Power, California, 7/17 at 100.00 AA 5,068,700
Waterworks Revenue Bonds, Series 2007A-2, 5.000%, 7/01/44 -
AMBAC Insured
Madera Irrigation District. California, Water Revenue Refunding
Bonds, Series 2008:
1,850 5.500%, 1/01/33 1/18 at 100.00 A- 1,902,041
3,000 5.500%, 1/01/38 1/18 at 100.00 A- 3,051,360
1,580 San Diego County Water Authority, California, Water Revenue 5/12 at 101.00 AA+ 1,639,138
Refunding Certificates of Participation, Series 2002A,
5.000%, 5/01/26 - NPFG Insured
3,500 Woodbridge Irrigation District, California, Certificates of 7/13 at 100.00 A+ 3,374,840
Participation, Water Systems Project, Series 2003, 5.625%,
7/01/43
----------------------------------------------------------------------------------------------------------------------------------
18,820 Total Water and Sewer 19,053,163
----------------------------------------------------------------------------------------------------------------------------------
$ 269,560 Total Investments (cost $234,493,424) - 100.2% 241,117,670
===============-------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (1.9)% (4,490,000)
----------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.7% 3,970,558
----------------------------------------------------------------------------------------------------------------
Net Assets - 100% $240,598,228
================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on
net assets applicable to Common Shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and
prices of the earliest optional call or redemption. There may be
other call provisions at varying prices at later dates. Certain
mortgage-backed securities may be subject to periodic principal
paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's 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.
(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 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. See Notes to Financial Statements, Footnote 1
- Inverse Floating Rate Securities for more information.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
Nuveen Investments 27
NCB | Nuveen California Municipal Value Fund 2
| Portfolio of Investments February 28, 2010
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 4.9% (5.0% OF TOTAL INVESTMENTS)
$ 3,500 Tobacco Securitization Authority of Northern California, 6/15 at 100.00 BBB $ 2,527,420
Tobacco Settlement Asset-Backed Bonds, Series 2005A-1,
5.500%, 6/01/45
-----------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 9.9% (10.0% OF TOTAL
INVESTMENTS)
500 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 A3 507,040
University of Redlands, Series 2005A, 5.000%, 10/01/25
2,510 California Educational Facilities Authority, Revenue Bonds, 11/19 at 100.00 A2 2,543,634
University of the Pacific, Series 2009, 5.500%, 11/01/39
1,965 California State Public Works Board, Lease Revenue Bonds, 4/19 at 100.00 BBB+ 2,049,672
University of California Department of Education Riverside
Campus Project, Series 2009B, 5.750%, 4/01/23
-----------------------------------------------------------------------------------------------------------------------------------
4,975 Total Education and Civic Organizations 5,100,346
-----------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 21.8% (22.1% OF TOTAL INVESTMENTS)
1,000 ABAG Finance Authority for Non-Profit Corporations, California, 5/19 at 100.00 A- 1,023,340
Cal-Mortgage Insured Health Facility Revenue Bonds, Saint
Rose Hospital, Series 2009A, 6.000%, 5/15/29
1,000 California Health Facilities Financing Authority Revenue Bonds, 11/19 at 100.00 A 1,054,220
Series 2009A (Childrens Hospital of Orange County, 6.500%,
11/01/38
1,900 California Health Facilities Financing Authority, Revenue 7/19 at 100.00 A 1,992,606
Bonds, Catholic Healthcare West, Series 2009A, 6.000%,
7/01/39
2,000 California Health Facilities Financing Authority, Revenue 3/16 at 100.00 A+ 1,925,680
Bonds, Kaiser Permanante System, Series 2006, 5.250%, 3/01/45
850 California Municipal Financing Authority, Certificates of 2/17 at 100.00 Baa2 781,915
Participation, Community Hospitals of Central California,
Series 2007, 5.250%, 2/01/27
1,400 California Statewide Communities Development Authority, Revenue 3/18 at 100.00 AAA 1,393,826
Bonds, Adventist Health System West, Series 2007B, 5.000%,
3/01/37 - AGC Insured
125 California Statewide Community Development Authority, Revenue 3/16 at 100.00 A+ 116,803
Bonds, Kaiser Permanante System, Series 2006, 5.000%, 3/01/41
1,500 California Statewide Community Development Authority, Revenue 8/18 at 100.00 AAA 1,505,100
Bonds, Sutter Health, Series 2004D, 5.050%, 8/15/38 - AGM
Insured
800 Hospital Authority of Delaware County, Indiana, Hospital 8/16 at 100.00 Baa3 728,488
Revenue Bonds, Cardinal Health System, Series 2006, 5.000%,
8/01/24
850 Illinois Finance Authority, Revenue Bonds, Sherman Health 8/17 at 100.00 BBB 753,653
Systems, Series 2007A, 5.500%, 8/01/37
-----------------------------------------------------------------------------------------------------------------------------------
11,425 Total Health Care 11,275,631
-----------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 10.9% (11.0% OF TOTAL INVESTMENTS)
1,485 California Housing Finance Agency, California, Home Mortgage 2/18 at 100.00 AA- 1,492,514
Revenue Bonds, Series 2008L, 5.500%, 8/01/38
2,500 California Housing Finance Agency, Home Mortgage Revenue Bonds, 2/16 at 100.00 AA- 2,230,400
Series 2006K, 4.625%, 8/01/26 (Alternative Minimum Tax)
2,000 California State Department of Veteran Affairs, Home Purchase 12/16 at 100.00 Aa2 1,884,760
Revenue Bonds, Series 2007b, 5.150%, 12/01/27 (Alternative
Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
5,985 Total Housing/Single Family 5,607,674
-----------------------------------------------------------------------------------------------------------------------------------
28 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.6% (1.7% OF TOTAL INVESTMENTS)
$ 900 California Enterprise Development Authority, Sewer Facilities 9/12 at 100.00 BBB+ $ 847,143
Revenue, Anheuser-Busch Project, Senior Lien Series 2007,
5.300%, 9/01/47 (Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 1.1% (1.0% OF TOTAL INVESTMENTS)
585 Courtland Industrial Development Board, Alabama, Solid Waste 6/15 at 100.00 BBB 526,728
Revenue Bonds, International Paper Company Project, Series
2005A, 5.200%, 6/01/25 (Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 12.1% (12.3% OF TOTAL INVESTMENTS)
2,000 California, Various Purpose General Obligation Bonds, Series 6/17 at 100.00 A 1,804,720
2007, 5.000%, 6/01/37 - NPFG Insured
2,100 Carlsbad Unified School District, San Diego County, 5/24 at 100.00 AA 1,307,502
California, General Obligation Bonds, Series 2009B, 0.000%,
5/01/34
1,120 Oakland, California, General Obligation Bonds, Measure Series 1/19 at 100.00 AA- 1,158,506
2009DD, 5.250%, 1/15/29
1,895 Pacific Grove Unified School District, California, General 8/19 at 100.00 AA 2,001,821
Obligation Bonds, Series 2009C., 5.375%, 8/01/39
-----------------------------------------------------------------------------------------------------------------------------------
7,115 Total Tax Obligation/General 6,272,549
-----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 11.8% (12.0% OF TOTAL INVESTMENTS)
1,000 Lancaster Redevelopment Agency Combined Project Areas, Housing 8/19 at 100.00 A 1,068,950
Programs, California, Tax Allocation Bonds 2009, 6.875%,
8/01/39
1,000 San Francisco City and County, California, Redevelopment 8/19 at 100.00 A 1,056,550
Financing Authority, Tax Allocation Revenue Bonds, San
Francisco Redevelopment Projects, Series 2009B, 6.625%,
8/01/39
1,500 San Francisco City and County, California, Certificates of 4/19 at 100.00 AA- 1,520,505
Participation, Multiple Capital Improvement Projects,
Series 2009A, 5.250%, 4/01/31
500 Val Verde Unified School District Financing Authority, 10/13 at 102.00 N/R 494,550
California, Special Tax Revenue, Junior Lien Refunding
Series 2003, 6.250%, 10/01/28
2,000 Westlake Village, California, Certificates of Participation, 6/16 at 100.00 AA+ 1,975,600
Financing Project, Series 2009, 5.000%, 6/01/39
-----------------------------------------------------------------------------------------------------------------------------------
6,000 Total Tax Obligation/Limited 6,116,155
-----------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 2.0% (2.0% OF TOTAL INVESTMENTS)
1,000 San Francisco Airports Commission, California, Revenue Bonds, 5/16 at 100.00 A1 1,039,230
San Francisco International Airport, Second Series 2002,
Issue 32G, 5.000%, 5/01/24 - FGIC Insured
-----------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 13.9% (14.1% OF TOTAL INVESTMENTS)
1,000 M-S-R Energy Authority, California, Gas Revenue Bonds, No Opt. Call A 1,063,030
Citigroup Prepay Contracts, Series 2009C, 6.500%, 11/01/39
2,495 Roseville Natural Gas Financing Authority, California, Gas No Opt. Call A 2,609,270
Revenue Bonds, Series 2007, 5.000%, 2/15/17
2,400 Southern California Public Power Authority, Natural Gas No Opt. Call A 2,429,256
Project 1 Revenue Bonds, Series 2007A, 5.250%, 11/01/24
1,000 Tuolumne Wind Project Authority, California, Revenue Bonds, 1/19 at 100.00 A+ 1,074,500
Tuolumne Company Project, Series 2009A, 5.625%, 1/01/29
-----------------------------------------------------------------------------------------------------------------------------------
6,895 Total Utilities 7,176,056
-----------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 8.7% (8.8% OF TOTAL INVESTMENTS)
2,000 Orange County Sanitation District, California, Certificates of 2/19 at 100.00 AAA 2,360,080
Participation, Series 2007, Trust 3020, 17.692%, 2/01/35 (IF)
1,000 San Diego Public Facilities Financing Authority, California, 5/19 at 100.00 A+ 1,102,830
Sewerage Revenue Bonds, Refunding Series 2009B, 5.250%,
5/15/25
Nuveen Investments 29
NCB | Nuveen California Municipal Value Fund 2 (continued)
| Portfolio of Investments February 28, 2010
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 500 Western Municipal Water District Facilities Authority, 10/19 at 100.00 AA+ $ 506,825
California, Water Revenue Bonds, Series 2009B, 5.000%,
10/01/39
500 Western Riverside Water & Wastewater Financing Authority, 8/19 at 100.00 AAA 521,505
California, Revenue Bonds, Western Municipal Water
District, Series 2009, 5.625%, 9/01/39
-----------------------------------------------------------------------------------------------------------------------------------
4,000 Total Water and Sewer 4,491,240
-----------------------------------------------------------------------------------------------------------------------------------
$ 52,380 Total Investments (cost $46,424,788) - 98.7% 50,980,172
=============----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.3% 681,223
-------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 51,661,395
===================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common Shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's 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.
N/R Not rated.
(IF) Inverse floating rate investment.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
30 Nuveen Investments
NCP | Nuveen California Performance Plus Municipal Fund, Inc.
| Portfolio of Investments February 28, 2010
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 5.7% (3.7% OF TOTAL INVESTMENTS)
$ 555 California County Tobacco Securitization Agency, Tobacco 6/15 at 100.00 BBB $ 522,000
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 2,212,110
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 7,720,772
Enhanced Tobacco Settlement Asset-Backed Bonds, Series
2007A-2, 0.000%, 6/01/37
-------------------------------------------------------------------------------------------------------------------------------
15,690 Total Consumer Staples 10,454,882
-------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 10.1% (6.6% OF TOTAL
INVESTMENTS)
160 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 A3 152,878
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 115,249
150 5.000%, 11/01/25 11/15 at 100.00 A2 152,885
4,730 California Infrastructure Economic Development Bank, Revenue 10/11 at 101.00 A- 4,807,383
Bonds, J. David Gladstone Institutes, Series 2001, 5.500%,
10/01/21
2,645 California State Public Works Board, Lease Revenue Bonds, 3/18 at 100.00 Aa2 2,686,685
University of California Regents, Trust 1065, 9.306%,
3/01/33 (IF)
4,730 California State University, Systemwide Revenue Bonds, Series 11/12 at 100.00 Aa3 4,915,321
2002A, 5.000%, 11/01/19 - AMBAC Insured
4,000 San Diego County, California, Certificates of Participation, 9/15 at 102.00 Baa3 3,341,920
Burnham Institute, Series 2006, 5.000%, 9/01/34
2,000 University of California, Revenue Bonds, Multi-Purpose 5/13 at 100.00 Aa1 2,200,260
Projects, Series 2003A, 5.125%, 5/15/17 - AMBAC Insured (UB)
-------------------------------------------------------------------------------------------------------------------------------
18,525 Total Education and Civic Organizations 18,372,581
-------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 11.5% (7.5% OF TOTAL INVESTMENTS)
375 California Health Facilities Financing Authority, Revenue 4/16 at 100.00 A+ 357,345
Bonds, Kaiser Permanante System, Series 2006, 5.000%,
4/01/37
6,385 California Health Facilities Financing Authority, Revenue 11/16 at 100.00 Aa3 6,053,044
Bonds, Sutter Health, Series 2007A, 5.250%, 11/15/46 (UB)
1,650 California Municipal Financing Authority, Certificates of 2/17 at 100.00 Baa2 1,396,164
Participation, Community Hospitals of Central California,
Series 2007, 5.250%, 2/01/46
895 California Statewide Communities Development Authority, 7/18 at 100.00 AAA 939,410
Revenue Bonds, Saint Joseph Health System, Trust 2554,
18.719%, 7/01/47 - AGM Insured (IF)
1,000 California Statewide Community Development Authority, Revenue 7/15 at 100.00 BBB 915,750
Bonds, Daughters of Charity Health System, Series 2005A,
5.250%, 7/01/30
1,175 California Statewide Community Development Authority, Revenue 3/16 at 100.00 A+ 1,097,944
Bonds, Kaiser Permanante System, Series 2006, 5.000%,
3/01/41
1,755 California Statewide Community Development Authority, Revenue 8/16 at 100.00 A+ 1,760,634
Bonds, Kaiser Permanente System, Series 2001C, 5.250%,
8/01/31
1,355 California Statewide Community Development Authority, Revenue No Opt. Call A- 1,352,710
Bonds, Sherman Oaks Health System, Series 1998A, 5.000%,
8/01/22 - AMBAC Insured
4,045 California Statewide Community Development Authority, Revenue 11/15 at 100.00 Aa3 3,701,377
Bonds, Sutter Health, Series 2005A, 5.000%, 11/15/43
1,750 Loma Linda, California, Hospital Revenue Bonds, Loma Linda 12/17 at 100.00 BBB 1,933,015
University Medical Center, Series 2008A, 8.250%, 12/01/38
1,600 The Regents of the University of California, Medical Center 5/15 at 101.00 Aa2 1,479,376
Pooled Revenue Bonds, Series 2007A, 4.500%, 5/15/37 - NPFG
Insured
-------------------------------------------------------------------------------------------------------------------------------
21,985 Total Health Care 20,986,769
-------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 3.0% (1.9% OF TOTAL INVESTMENTS)
1,500 California Statewide Community Development Authority, Student 8/12 at 100.00 Baa1 1,508,730
Housing Revenue Bonds, EAH - Irvine East Campus Apartments,
LLC Project, Series 2002A, 5.500%, 8/01/22 - ACA Insured
Nuveen Investments 31
NCP | Nuveen California Performance Plus Municipal Fund, Inc. (continued)
| Portfolio of Investments February 28, 2010
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY (continued)
$ 3,915 Los Angeles, California, GNMA Collateralized Multifamily 3/10 at 100.00 AAA $ 3,918,015
Housing Revenue Bonds, Ridgecroft Apartments, Series 1997E,
6.250%, 9/20/39 (Alternative Minimum Tax)
-------------------------------------------------------------------------------------------------------------------------------
5,415 Total Housing/Multifamily 5,426,745
-------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.2% (0.1% OF TOTAL INVESTMENTS)
300 California Housing Finance Agency, Home Mortgage Revenue 2/16 at 100.00 AA- 322,563
Bonds, Series 2006H, 5.750%, 8/01/30 - FGIC Insured
(Alternative Minimum Tax)
-------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.7% (0.5% OF TOTAL INVESTMENTS)
1,250 California Pollution Control Financing Authority, Solid Waste 1/16 at 102.00 BBB 1,238,138
Disposal Revenue Bonds, Waste Management Inc., Series
2002A, 5.000%, 1/01/22 (Alternative Minimum Tax)
-------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.1% (1.3% OF TOTAL INVESTMENTS)
4,500 California Statewide Communities Development Authority, 12/17 at 100.00 Ba1 3,737,835
Revenue Bonds, Inland Regional Center Project, Series 2007,
5.250%, 12/01/27
-------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 21.8% (14.2% OF TOTAL INVESTMENTS)
500 California, General Obligation Bonds, Series 2004, 5.000%, 2/14 at 100.00 A- 508,375
2/01/23
5,750 California, General Obligation Bonds, Various Purpose Series 11/19 at 100.00 A- 5,949,928
2009, 6.000%, 11/01/39
3,550 Centinela Valley Union High School District, Los Angeles No Opt. Call A 3,714,223
County, California, General Obligation Bonds, Series 2002A,
5.250%, 2/01/26 - NPFG Insured
1,400 Los Rios Community College District, Sacramento, El Dorado and 8/14 at 102.00 AAA 1,533,238
Yolo Counties, California, General Obligation Bonds, Series
2006C, 5.000%, 8/01/24 - AGM Insured (UB)
3,200 Murrieta Valley Unified School District, Riverside County, 9/17 at 100.00 AAA 3,067,488
California, General Obligation Bonds, Series 2007, 4.500%,
9/01/30 - AGM Insured
4,765 North Orange County Community College District, California, No Opt. Call AA 1,758,952
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 A+ 2,755,842
Obligation Refunding Bonds, Series 2001A, 5.750%, 8/01/30 -
NPFG Insured
6,000 Puerto Rico, General Obligation and Public Improvement Bonds, No Opt. Call A 6,112,140
Series 1993, 7.000%, 7/01/10 - NPFG Insured
Riverside Community College District, California, General
Obligation Bonds, Series 2004A:
15 5.250%, 8/01/25 - NPFG Insured 8/14 at 100.00 AA- 16,436
20 5.250%, 8/01/26 - NPFG Insured 8/14 at 100.00 AA- 21,188
325 Roseville Joint Union High School District, Placer County, 8/15 at 100.00 AA- 336,700
California, General Obligation Bonds, Series 2006B, 5.000%,
8/01/27 - FGIC Insured
4,000 San Diego Unified School District, San Diego County, 7/13 at 101.00 AAA 4,561,200
California, General Obligation Bonds, Series 2003E, 5.250%,
7/01/22 - AGM Insured
3,000 San Jose-Evergreen Community College District, Santa Clara 9/10 at 100.00 Aa2 3,070,710
County, California, General Obligation Bonds, Series 2000B,
5.600%, 9/01/24 - FGIC Insured
1,850 San Juan Capistano, California, General Obligation Bonds, Open 8/19 at 100.00 AAA 2,111,442
Space Program, Tender Option Bond Trust 3646, 17.931%,
8/01/40 (IF)
2,200 Santa Maria Joint Union High School District, Santa Barbara No Opt. Call Aa3 2,716,186
and San Luis Obispo Counties, California, General
Obligation Bonds, Series 2003B, 5.625%, 8/01/24 - AGM
Insured
1,440 Southwestern Community College District, San Diego County, 8/15 at 102.00 AA- 1,541,477
California, General Obligation Bonds, Series 2005, 5.000%,
8/01/24 - NPFG Insured
-------------------------------------------------------------------------------------------------------------------------------
40,590 Total Tax Obligation/General 39,775,525
-------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 33.0% (21.5% OF TOTAL INVESTMENTS)
5,045 California State Public Works Board, Lease Revenue Bonds, 3/12 at 100.00 BBB+ 5,061,194
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 BBB+ 1,610,516
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 BBB+ 3,092,233
Department of Mental Health, Coalinga State Hospital,
Series 2004A, 5.500%, 6/01/19
1,000 California State Public Works Board, Lease Revenue Bonds, 10/19 at 100.00 BBB+ 999,940
Various Capital Projects, Series 2009G-1, 5.750%, 10/01/30
32 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,295 California, Economic Recovery Revenue Bonds, Series 2004A, 7/14 at 100.00 A+ $ 1,445,647
5.000%, 7/01/15
400 Capistrano Unified School District, Orange County, California, 9/15 at 100.00 A 388,740
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 BBB 1,047,170
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 N/R 1,791,180
California, Certificates of Participation, Series 2007,
5.000%, 9/01/31 - AMBAC Insured
2,500 Corona Public Financing Authority, California, Superior Lien 3/10 at 102.00 AAA 2,573,475
Revenue Bonds, Series 1999A, 5.000%, 9/01/20 - AGM Insured
1,045 Hawthorne Community Redevelopment Agency, California, Project 9/16 at 100.00 A- 946,739
Area 2 Tax Allocation Bonds, Series 2006, 5.250%, 9/01/36 -
SYNCORA GTY Insured
1,750 Hesperia Community Redevelopment Agency, California, Tax 9/15 at 100.00 BBB 1,537,865
Allocation Bonds, Series 2005A, 5.000%, 9/01/25 - SYNCORA
GTY Insured
Irvine, California, Unified School District, Community
Facilities District Special Tax Bonds, Series 2006A:
185 5.000%, 9/01/26 9/16 at 100.00 N/R 165,068
425 5.125%, 9/01/36 9/16 at 100.00 N/R 356,261
730 Los Angeles Community Redevelopment Agency, California, Lease 9/15 at 100.00 A2 634,005
Revenue Bonds, Manchester Social Services Project, Series
2005, 5.000%, 9/01/37 - AMBAC Insured
10,000 Los Angeles County Public Works Financing Authority, 9/16 at 100.00 A 9,654,900
California, Lease Revenue Bonds, Series 2006B, 5.000%,
9/01/31 - FGIC Insured
4,000 Los Angeles, California, Municipal Improvement Corporation, 1/17 at 100.00 A+ 3,856,120
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 1,448,191
California, Certificates of Participation, Series 2005,
5.000%, 3/01/22 - AGM Insured
3,500 Murrieta Redevelopment Agency, California, Tax Allocation 8/17 at 100.00 A 3,040,205
Bonds, Series 2007A, 5.000%, 8/01/37 - NPFG Insured
1,000 Paramount Redevelopment Agency, California, Tax Allocation 8/13 at 100.00 A 999,380
Bonds, Redevelopment Project Area 1, Series 2003, 5.000%,
8/01/23 - NPFG Insured
350 Rialto Redevelopment Agency, California, Tax Allocation Bonds, 9/15 at 100.00 A- 307,881
Merged Project Area, Series 2005A, 5.000%, 9/01/35 -
SYNCORA GTY Insured
1,500 Riverside County Public Financing Authority, California, Tax 10/15 at 100.00 BBB 1,275,645
Allocation Bonds, Multiple Projects, Series 2005A, 5.000%,
10/01/37 - SYNCORA GTY Insured
1,000 Rohnert Park Community Development Commission, California, 8/17 at 100.00 A 868,630
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 AA- 435,256
Facilities, Series 2003A, 5.000%, 8/01/25 - AMBAC Insured
1,000 Sacramento City Financing Authority, California, Lease Revenue No Opt. Call A 1,070,510
Refunding Bonds, Series 1993A, 5.400%, 11/01/20 - NPFG
Insured
5,000 San Marcos Public Facilities Authority, California, Tax 8/15 at 100.00 A- 4,399,000
Allocation 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 N/R 689,864
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 - NPFG Insured 6/13 at 100.00 A 2,727,394
1,500 5.000%, 6/01/21 - NPFG Insured 6/13 at 100.00 A 1,515,164
Sweetwater Union High School District, San Diego County,
California, Certificates of Participation, Series 2002:
2,000 5.000%, 9/01/23 - AGM Insured 9/12 at 102.00 AAA 2,039,040
4,015 5.000%, 9/01/24 - AGM Insured 9/12 at 102.00 AAA 4,076,510
-------------------------------------------------------------------------------------------------------------------------------
62,310 Total Tax Obligation/Limited 60,053,723
-------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 33
NCP | Nuveen California Performance Plus Municipal Fund, Inc. (continued)
| Portfolio of Investments February 28, 2010
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 27.7% (18.0% OF TOTAL INVESTMENTS)
$ 1,430 Bay Area Toll Authority, California, Revenue Bonds, San 4/16 at 100.00 AA $ 1,450,134
Francisco Bay Area Toll Bridge, Series 2006F, 5.000%, 4/01/31
(UB)
1,935 Bay Area Toll Authority, California, Revenue Bonds, San 4/18 at 100.00 AA 2,216,620
Francisco Bay Area Toll Bridge, Series 2008, Trust 3211,
13.541%, 4/01/39 (IF)
750 Bay Area Toll Authority, California, Revenue Bonds, San 4/19 at 100.00 AA 834,420
Francisco Bay Area Toll Bridge, Series 2009, Trust 2985-1,
18.111%, 4/01/39 (IF)
6,500 Foothill/Eastern Transportation Corridor Agency, California, 1/14 at 101.00 BBB- 6,308,510
Toll Road Revenue Refunding Bonds, Series 1999, 5.875%,
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 2,786,936
11,885 5.750%, 5/15/15 (Alternative Minimum Tax) 5/10 at 101.00 AA 12,075,992
8,485 Port of Oakland, California, Revenue Bonds, Series 2000K, 5/10 at 100.00 A 8,489,582
5.750%, 11/01/29 - FGIC Insured
14,000 San Francisco Airports Commission, California, Revenue Bonds, 5/10 at 101.00 AAA 14,255,080
San Francisco International Airport, Second Series 2000,
Issue 25, 5.500%, 5/01/24 - AGM Insured (Alternative Minimum
Tax)
2,000 San Francisco Airports Commission, California, Revenue Refunding 5/11 at 100.00 A1 2,018,280
Bonds, San Francisco International Airport, Second Series
2001, Issue 27B, 5.000%, 5/01/23 - FGIC Insured
-----------------------------------------------------------------------------------------------------------------------------------
49,725 Total Transportation 50,435,554
-----------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 11.6% (7.6% OF TOTAL INVESTMENTS) (4)
175 California County Tobacco Securitization Agency, Tobacco 6/10 at 100.00 N/R (4) 176,796
Settlement Asset-Backed Bonds, Sonoma County Tobacco Funding
Corporation, Series 2002B, 5.125%, 6/01/20 (Pre-refunded
6/01/10)
5,360 California Infrastructure Economic Development Bank, First Lien No Opt. Call AAA 6,472,575
Revenue Bonds, San Francisco Bay Area Toll Bridge, Series
2003A, 5.000%, 7/01/23 - AGM Insured (ETM)
900 California, Economic Recovery Revenue Bonds, Series 2004A, 7/14 at 100.00 AAA 1,045,881
5.000%, 7/01/15 (Pre-refunded 7/01/14)
4,000 Contra Costa County, California, GNMA Mortgage-Backed Securities No Opt. Call AAA 5,444,640
Program Home Mortgage Revenue Bonds, Series 1988, 8.250%,
6/01/21 (Alternative Minimum Tax) (ETM)
3,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 3,527,610
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.750%, 6/01/39 (Pre-refunded 6/01/13)
65 Port of Oakland, California, Revenue Bonds, Series 2000K, 5/10 at 100.00 A (4) 65,565
5.750%, 11/01/29 (Pre-refunded 5/01/10) - FGIC Insured
4,000 Puerto Rico Highway and Transportation Authority, Highway 7/12 at 100.00 AAA 4,404,440
Revenue Bonds, Series 2002D, 5.375%, 7/01/36 (Pre-refunded
7/01/12)
-----------------------------------------------------------------------------------------------------------------------------------
17,500 Total U.S. Guaranteed 21,137,507
-----------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 11.5% (7.5% OF TOTAL INVESTMENTS)
4,210 California Statewide Community Development Authority, 6/10 at 100.00 N/R 3,846,593
Certificates of Participation Refunding, Rio Bravo Fresno
Project, Series 1999A, 6.500%, 12/01/18 (5)
2,140 Long Beach Bond Finance Authority, California, Natural Gas No Opt. Call A 2,068,952
Purchase Revenue Bonds, Series 2007A, 5.500%, 11/15/37
725 Los Angeles Department of Water and Power, California, Power 7/13 at 100.00 AA- 781,014
System Revenue Bonds, Series 2003A-2, 5.000%, 7/01/21 - NPFG
Insured
500 Los Angeles Department of Water and Power, California, Power 7/15 at 100.00 AAA 515,210
System Revenue Bonds, Series 2005A-1, 5.000%, 7/01/31 - AGM
Insured (UB)
715 Merced Irrigation District, California, Electric System Revenue 9/15 at 100.00 N/R 641,541
Bonds, Series 2005, 5.125%, 9/01/31 - SYNCORA GTY Insured
10,450 Orange County Public Financing Authority, California, Waste No Opt. Call A1 11,470,652
Management System Revenue Refunding Bonds, Series 1997,
5.250%, 12/01/13 - AMBAC Insured (Alternative Minimum Tax)
1,000 Sacramento Municipal Utility District, California, Electric No Opt. Call A+ 1,043,130
Revenue Bonds, Series 2004T, 5.250%, 5/15/23 - FGIC Insured
500 Sacramento Municipal Utility District, California, Electric 8/12 at 100.00 AAA 520,135
Revenue Refunding Bonds, Series 2002Q, 5.250%, 8/15/22 - AGM
Insured
-----------------------------------------------------------------------------------------------------------------------------------
20,240 Total Utilities 20,887,227
-----------------------------------------------------------------------------------------------------------------------------------
34 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 14.8% (9.6% OF TOTAL INVESTMENTS)
$ 1,000 California Statewide Community Development Authority, Water and 10/13 at 100.00 AAA $ 1,039,350
Wastewater Revenue Bonds, Pooled Financing Program, Series
2003A, 5.250%, 10/01/23 - AGM Insured
2,500 Central Basin Municipal Water District, California, Certificates 2/20 at 100.00 AAA 2,474,900
of Participation, Tender Option Bond Trust 3152, 17.833%,
8/01/39 (WI/DD, Settling 3/11/10) - AGM Insured (IF)
2,500 El Centro Financing Authority, California, Water Revenue Bonds, 10/16 at 100.00 AAA 2,395,600
Series 2006A, 4.750%, 10/01/31 - AGM Insured
4,770 Los Angeles Department of Water and Power, California, Waterworks 7/14 at 100.00 AA 5,294,128
Revenue Bonds, Series 2004C, 5.250%, 7/01/20 - NPFG Insured
2,500 Pajaro Valley Water Management Agency, California, Revenue 3/10 at 100.00 BB 2,176,800
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 6,248,699
California, Revenue Bonds, Series 2000A, 5.250%, 12/01/12
4,585 Santa Maria, California, Subordinate Water and Wastewater Revenue 8/12 at 101.00 N/R 4,659,094
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 1,720,655
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 A+ 911,207
Participation, Water Systems Project, Series 2003, 5.625%,
7/01/43
------------------------------------------------------------------------------------------------------------------------------------
26,485 Total Water and Sewer 26,920,433
------------------------------------------------------------------------------------------------------------------------------------
$ 284,515 Total Investments (cost $279,425,112) - 153.7% 279,749,482
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (3.9)% (7,105,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.3% 590,344
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (50.1)% (6) (91,175,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 182,059,826
=====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's 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.
(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 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 32.6%.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction. See Notes to Financial Statements, Footnote 1 - Inverse
Floating Rate Securities for more information.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
Nuveen Investments 35
NCO | Nuveen California Municipal Market Opportunity Fund, Inc.
| Portfolio of Investments February 28, 2010
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 6.0% (4.2% OF TOTAL INVESTMENTS)
$ 355 California County Tobacco Securitization Agency, Tobacco 6/15 at 100.00 BBB $ 333,892
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 1,474,740
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 5,147,182
Enhanced Tobacco Settlement Asset-Backed Bonds, Series
2007A-2, 0.000%, 6/01/37
-----------------------------------------------------------------------------------------------------------------------------------
10,445 Total Consumer Staples 6,955,814
-----------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 4.1% (2.8% OF TOTAL
INVESTMENTS)
100 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 A3 95,549
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 73,340
95 5.000%, 11/01/25 11/15 at 100.00 A2 96,827
1,000 California Infrastructure Economic Development Bond Bank, 7/15 at 100.00 Aa3 1,058,020
Revenue Bonds, Scripps Research Institute, Series 2005A,
5.000%, 7/01/24
1,680 California State Public Works Board, Lease Revenue Bonds, 3/18 at 100.00 Aa2 1,706,477
University of California Regents, Trust 1065, 9.306%, 3/01/33
(IF)
2,000 San Diego County, California, Certificates of Participation, 9/15 at 102.00 Baa3 1,670,960
Burnham Institute, Series 2006, 5.000%, 9/01/34
-----------------------------------------------------------------------------------------------------------------------------------
4,945 Total Education and Civic Organizations 4,701,173
-----------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 16.5% (11.4% OF TOTAL INVESTMENTS)
240 California Health Facilities Financing Authority, Revenue Bonds, 4/16 at 100.00 A+ 228,701
Kaiser Permanante System, Series 2006, 5.000%, 4/01/37
5,305 California Health Facilities Financing Authority, Revenue Bonds, 11/16 at 100.00 Aa3 5,029,193
Sutter Health, Series 2007A, 5.250%, 11/15/46 (UB)
3,200 California Infrastructure Economic Development Bank, Revenue 8/11 at 102.00 A+ 3,235,648
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 896,930
Participation, Community Hospitals of Central California,
Series 2007, 5.250%, 2/01/46
569 California Statewide Communities Development Authority, Revenue 7/18 at 100.00 AAA 597,234
Bonds, Saint Joseph Health System, Trust 2554, 18.719%,
7/01/47 - AGM Insured (IF)
1,000 California Statewide Community Development Authority, Insured 10/17 at 100.00 A- 863,480
Health Facility Revenue Bonds, Henry Mayo Newhall Memorial
Hospital, Series 2007A, 5.000%, 10/01/37
755 California Statewide Community Development Authority, Revenue 3/16 at 100.00 A+ 705,487
Bonds, Kaiser Permanante System, Series 2006, 5.000%, 3/01/41
135 California Statewide Community Development Authority, Revenue 8/16 at 100.00 A+ 135,433
Bonds, Kaiser Permanente System, Series 2001C, 5.250%, 8/01/31
675 California Statewide Community Development Authority, Revenue No Opt. Call A- 673,859
Bonds, Sherman Oaks Health System, Series 1998A, 5.000%,
8/01/22 - AMBAC Insured
2,585 California Statewide Community Development Authority, Revenue 11/15 at 100.00 Aa3 2,365,404
Bonds, Sutter Health, Series 2005A, 5.000%, 11/15/43
1,150 Loma Linda, California, Hospital Revenue Bonds, Loma Linda 12/17 at 100.00 BBB 1,270,267
University Medical Center, Series 2008A, 8.250%, 12/01/38
1,205 Madera County, California, Certificates of Participation, 3/20 at 100.00 A- 1,189,166
Children's Hospital Central California, Series 2010, 5.375%,
3/15/36
1,000 Rancho Mirage Joint Powers Financing Authority, California, 7/17 at 100.00 A3 905,980
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 Aa2 924,610
Pooled Revenue Bonds, Series 2007A, 4.500%, 5/15/37 - NPFG
Insured
-----------------------------------------------------------------------------------------------------------------------------------
19,879 Total Health Care 19,021,392
-----------------------------------------------------------------------------------------------------------------------------------
36 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.2% (0.1% OF TOTAL INVESTMENTS)
$ 195 California Housing Finance Agency, Home Mortgage Revenue Bonds, 2/16 at 100.00 AA- $ 209,666
Series 2006H, 5.750%, 8/01/30 - FGIC Insured (Alternative
Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.6% (0.5% OF TOTAL INVESTMENTS)
750 California Pollution Control Financing Authority, Solid Waste 1/16 at 102.00 BBB 742,883
Disposal Revenue Bonds, Waste Management Inc., Series 2002A,
5.000%, 1/01/22 (Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.1% (1.5% OF TOTAL INVESTMENTS)
2,900 California Statewide Communities Development Authority, Revenue 12/17 at 100.00 Ba1 2,408,827
Bonds, Inland Regional Center Project, Series 2007, 5.250%,
12/01/27
-----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 18.7% (12.9% OF TOTAL INVESTMENTS)
4,125 Alameda Unified School District, Alameda County, California, No Opt. Call AAA 1,722,600
General Obligation Bonds, Series 2004A, 0.000%, 8/01/25 - AGM
Insured
2,000 California, General Obligation Bonds, Various Purpose Series 11/19 at 100.00 A- 2,069,540
2009, 6.000%, 11/01/39
1,350 Coachella Valley Unified School District, Riverside County, 8/15 at 100.00 A 1,359,518
California, General Obligation Bonds, Series 2005A, 5.000%,
8/01/30 - FGIC Insured
2,150 Los Rios Community College District, Sacramento, El Dorado and 8/14 at 102.00 AAA 2,354,616
Yolo Counties, California, General Obligation Bonds, Series
2006C, 5.000%, 8/01/24 - AGM Insured (UB)
4,100 Monrovia Unified School District, Los Angeles County, No Opt. Call A+ 1,428,809
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 2,529,375
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 A 1,105,460
General Obligation Refunding Bonds, Series 1997A, 6.150%,
8/01/15 - NPFG Insured
25 Riverside Community College District, California, General 8/14 at 100.00 AA- 27,425
Obligation Bonds, Series 2004A, 5.250%, 8/01/24 - NPFG Insured
210 Roseville Joint Union High School District, Placer County, 8/15 at 100.00 AA- 217,560
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 AA 5,072,800
Obligation Bonds, Election of 1998, Series 2000B, 5.125%,
7/01/21 - NPFG Insured
4,970 San Rafael City High School District, Marin County, California, No Opt. Call AA 1,797,699
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- 1,774,333
California, General Obligation Bonds, Series 2004, 0.000%,
8/01/25 - FGIC Insured
-----------------------------------------------------------------------------------------------------------------------------------
31,605 Total Tax Obligation/General 21,459,735
-----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 23.5% (16.3% OF TOTAL INVESTMENTS)
2,000 California State Public Works Board, Lease Revenue Bonds, 6/14 at 100.00 BBB+ 2,054,640
Department of Mental Health, Coalinga State Hospital, Series
2004A, 5.500%, 6/01/19
260 Capistrano Unified School District, Orange County, California, 9/15 at 100.00 A 252,681
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 BBB 666,381
Redevelopment Project Area Tax Allocation Bonds, Series 2006,
5.000%, 9/01/38 - AMBAC Insured
1,035 Hawthorne Community Redevelopment Agency, California, Project 9/16 at 100.00 A- 937,679
Area 2 Tax Allocation Bonds, Series 2006, 5.250%, 9/01/36 -
SYNCORA GTY Insured
Irvine, California, Unified School District, Community
Facilities District Special Tax Bonds,
Series 2006A:
120 5.000%, 9/01/26 9/16 at 100.00 N/R 107,071
275 5.125%, 9/01/36 9/16 at 100.00 N/R 230,522
Nuveen Investments 37
NCO | Nuveen California Municipal Market Opportunity Fund, Inc. (continued)
| Portfolio of Investments February 28, 2010
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 470 Los Angeles Community Redevelopment Agency, California, Lease 9/15 at 100.00 A2 $ 408,195
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 N/R 1,282,311
1,500 5.250%, 9/01/26 - AMBAC Insured 9/14 at 100.00 N/R 1,381,650
10,900 Ontario Redevelopment Financing Authority, San Bernardino No Opt. Call A 12,727,821
County, California, Revenue Refunding Bonds, Redevelopment
Project 1, Series 1995, 7.400%, 8/01/25 - NPFG Insured
1,000 Ontario, California, Special Tax Bonds, Community Facilities 3/10 at 100.00 N/R 1,007,030
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 A 1,117,004
Certificates of Participation, School Construction Project,
Series 2006, 5.000%, 9/01/22 - NPFG Insured
225 Rialto Redevelopment Agency, California, Tax Allocation Bonds, 9/15 at 100.00 A- 197,924
Merged Project Area, Series 2005A, 5.000%, 9/01/35 - SYNCORA
GTY Insured
280 Roseville, California, Certificates of Participation, Public 8/13 at 100.00 AA- 280,165
Facilities, Series 2003A, 5.000%, 8/01/25 - AMBAC Insured
2,500 Sacramento City Financing Authority, California, Lease Revenue No Opt. Call A 2,676,275
Refunding Bonds, Series 1993A, 5.400%, 11/01/20 - AMBAC
Insured
1,200 San Jose Financing Authority, California, Lease Revenue 9/11 at 100.00 AA+ 1,266,768
Refunding Bonds, Convention Center Project, Series 2001F,
5.000%, 9/01/20 - NPFG Insured
485 San Mateo Union High School District, San Mateo County, 12/17 at 100.00 N/R 446,113
California, Certificates of Participation, Phase 1, Series
2007A, 5.000%, 12/15/30 - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
25,460 Total Tax Obligation/Limited 27,040,230
-----------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 25.0% (17.3% OF TOTAL INVESTMENTS)
1,355 Bay Area Toll Authority, California, Revenue Bonds, San 4/18 at 100.00 AA 1,552,207
Francisco Bay Area Toll Bridge, Series 2008, Trust 3211,
13.541%, 4/01/39 (IF)
4,000 Foothill/Eastern Transportation Corridor Agency, California, 1/14 at 101.00 BBB- 3,882,160
Toll Road Revenue Refunding Bonds, Series 1999, 5.875%,
1/15/29
8,500 Long Beach, California, Harbor Revenue Bonds, Series 2000A, 5/10 at 101.00 AA 8,645,605
5.750%, 5/15/14 (Alternative Minimum Tax)
5,210 Port of Oakland, California, Revenue Bonds, Series 2000K, 5/10 at 100.00 A 5,212,813
5.750%, 11/01/29 - FGIC Insured
San Francisco Airports Commission, California, Revenue Bonds,
San Francisco International Airport, Second Series 2000, Issue
25:
2,515 5.500%, 5/01/24 - AGM Insured (Alternative Minimum Tax) 5/10 at 101.00 AAA 2,560,823
3,100 5.750%, 5/01/30 - AGM Insured (Alternative Minimum Tax) 5/10 at 101.00 AAA 3,157,877
1,250 San Francisco Airports Commission, California, Revenue Bonds, 5/10 at 101.00 A1 1,264,600
San Francisco International Airport, Second Series 2000,
Issue 26B, 5.000%, 5/01/21 - FGIC Insured
2,465 San Francisco Airports Commission, California, Special 7/10 at 100.00 AAA 2,466,997
Facilities Lease Revenue Bonds, San Francisco International
Airport, SFO Fuel Company LLC, Series 2000A, 6.125%, 1/01/27
- AGM Insured (Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
28,395 Total Transportation 28,743,082
-----------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 20.3% (14.1% OF TOTAL INVESTMENTS) (4)
3,000 California Department of Water Resources, Power Supply Revenue 5/12 at 101.00 Aaa 3,320,580
Bonds, Series 2002A, 5.125%, 5/01/18 (Pre-refunded 5/01/12)
25 California Department of Water Resources, Water System Revenue 12/11 at 100.00 AAA 27,210
Bonds, Central Valley Project, Series 2001W, 5.500%, 12/01/15
(Pre-refunded 12/01/11)
10 California Department of Water Resources, Water System Revenue No Opt. Call AAA 12,207
Bonds, Central Valley Project, Series 2002X, 5.500%, 12/01/17
- FGIC Insured (ETM)
38 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 2,100 California, General Obligation Bonds, Series 2004, 5.250%, 4/14 at 100.00 AAA $ 2,455,089
4/01/34 (Pre-refunded 4/01/14)
1,680 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 1,870,445
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) 5,090,550
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 A3 (4) 2,130,740
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 972,799
of Participation, Series 2003B, 5.000%, 8/15/34 - NPFG
Insured (ETM)
4,000 Pomona, California, GNMA/FHLMC Collateralized Single Family No Opt. Call AAA 5,284,320
Mortgage Revenue Refunding Bonds, Series 1990B, 7.500%,
8/01/23 (ETM)
40 Port of Oakland, California, Revenue Bonds, Series 2000K, 5/10 at 100.00 A (4) 40,347
5.750%, 11/01/29 (Pre-refunded 5/01/10) - FGIC Insured
1,875 Riverside Community College District, California, General 8/14 at 100.00 AA- (4) 2,208,881
Obligation Bonds, Series 2004A, 5.250%, 8/01/24
(Pre-refunded 8/01/14) - MBIA Insured
-----------------------------------------------------------------------------------------------------------------------------------
20,605 Total U.S. Guaranteed 23,413,168
-----------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 6.4% (4.4% OF TOTAL INVESTMENTS)
1,500 California Pollution Control Financing Authority, Revenue 3/10 at 101.00 A1 1,513,620
Refunding Bonds, Southern California Edison Company, Series
1999A, 5.450%, 9/01/29 - NPFG Insured
2,815 California Statewide Community Development Authority, 6/10 at 100.00 N/R 2,572,008
Certificates of Participation Refunding, Rio Bravo Fresno
Project, Series 1999A, 6.500%, 12/01/18 (5)
1,365 Long Beach Bond Finance Authority, California, Natural Gas No Opt. Call A 1,319,682
Purchase Revenue Bonds, Series 2007A, 5.500%, 11/15/37
455 Merced Irrigation District, California, Electric System Revenue 9/15 at 100.00 N/R 408,252
Bonds, Series 2005, 5.125%, 9/01/31 - SYNCORA GTY Insured
1,500 Southern California Public Power Authority, California, Milford No Opt. Call AA- 1,561,470
Wind Corridor Phase I Revenue Bonds, Series 2010-1, 5.000%,
7/01/28
-----------------------------------------------------------------------------------------------------------------------------------
7,635 Total Utilities 7,375,032
-----------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 21.0% (14.5% OF TOTAL INVESTMENTS)
1,020 California Department of Water Resources, Water System Revenue No Opt. Call AAA 1,241,758
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 2,395,600
Series 2006A, 4.750%, 10/01/31 - AGM Insured
750 Fortuna Public Finance Authority, California, Water Revenue 10/16 at 100.00 AAA 736,965
Bonds, Series 2006, 5.000%, 10/01/36 - AGM Insured
3,380 Orange County Sanitation District, California, Certificates of 2/19 at 100.00 AAA 3,988,535
Participation, Trust 11738, Series 2009, 17.843%, 2/01/35 (IF)
3,500 Placerville Public Financing Authority, California, Wastewater 9/16 at 100.00 N/R 3,094,420
System Refinancing and Improvement Project Revenue Bonds,
Series 2006, 5.000%, 9/01/34 - SYNCORA GTY Insured
350 Sacramento County Sanitation District Financing Authority, 6/16 at 100.00 AA 357,903
California, Revenue Bonds, Series 2006, 5.000%,
12/01/31 - FGIC Insured
Nuveen Investments 39
NCO | Nuveen California Municipal Market Opportunity Fund, Inc. (continued)
| Portfolio of Investments February 28, 2010
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 2,000 San Francisco City and County Public Utilities Commission, 4/13 at 100.00 A+ $ 2,142,740
California, Clean Water Revenue Refunding Bonds, Series 2003A,
5.250%, 10/01/20 - NPFG Insured
10,000 Santa Maria, California, Subordinate Water and Wastewater Revenue 8/12 at 101.00 N/R 10,161,600
Certificates of Participation, Series 1997A, 5.550%, 8/01/27 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
23,500 Total Water and Sewer 24,119,521
------------------------------------------------------------------------------------------------------------------------------------
$ 176,314 Total Investments (cost $165,469,141) - 144.4% 166,190,523
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (3.7)% (4,285,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.7% 1,938,156
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (42.4)% (6) (48,775,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 115,068,679
=====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's 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.
(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 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 29.3%.
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. See Notes to Financial Statements, Footnote 1 - Inverse
Floating Rate Securities for more information.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
40 Nuveen Investments
NQC | Nuveen California Investment Quality Municipal Fund, Inc.
| Portfolio of Investments February 28, 2010
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 6.0% (3.9% OF TOTAL INVESTMENTS)
California County Tobacco Securitization Agency, Tobacco
Settlement Asset-Backed Bonds, Sonoma County Tobacco
Securitization Corporation, Series 2005:
$ 585 4.250%, 6/01/21 6/15 at 100.00 BBB $ 550,216
3,500 5.250%, 6/01/45 6/15 at 100.00 BBB 2,414,020
2,000 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 1,474,740
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 4,288,257
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 2,771,125
Settlement Asset-Backed Bonds, Series 2005A-1, 5.375%, 6/01/38
-----------------------------------------------------------------------------------------------------------------------------------
16,325 Total Consumer Staples 11,498,358
-----------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 15.4% (9.9% OF TOTAL
INVESTMENTS)
3,000 California Educational Facilities Authority, Revenue Bonds, 12/16 at 100.00 Baa3 2,542,710
Dominican University, Series 2006, 5.000%, 12/01/36
2,000 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 Aa3 2,046,920
Occidental College, Series 2005A, 5.000%, 10/01/27 - NPFG
Insured
170 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 A3 162,433
University of Redlands, Series 2005A, 5.000%, 10/01/35
930 California Educational Facilities Authority, Revenue Bonds, 11/10 at 100.00 A2 933,422
University of the Pacific, Series 2000, 5.750%, 11/01/30 -
NPFG 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 125,726
160 5.000%, 11/01/25 11/15 at 100.00 A2 163,077
6,000 California State Public Works Board, Lease Revenue Bonds, 4/10 at 100.00 A1 6,001,020
California State University Projects, Series 1997C, 5.400%,
10/01/22
2,798 California State Public Works Board, Lease Revenue Bonds, 3/18 at 100.00 Aa2 2,842,096
University of California Regents, Trust 1065, 9.306%, 3/01/33
(IF)
2,500 Long Beach Bond Financing Authority, California, Lease Revenue 11/11 at 101.00 BBB 2,343,975
Refunding Bonds, Long Beach Aquarium of the South Pacific,
Series 2001, 5.250%, 11/01/30 - AMBAC Insured
University of California, Revenue Bonds, Multi-Purpose Projects,
Series 2003A:
4,270 5.125%, 5/15/16 - AMBAC Insured (UB) 5/13 at 100.00 Aa1 4,701,740
3,000 5.125%, 5/15/17 - AMBAC Insured (UB) 5/13 at 100.00 Aa1 3,300,390
1,060 5.000%, 5/15/24 - AMBAC Insured (UB) 5/13 at 100.00 Aa1 1,131,105
3,000 5.000%, 5/15/33 - AMBAC Insured (UB) 5/13 at 100.00 Aa1 3,058,260
-----------------------------------------------------------------------------------------------------------------------------------
29,008 Total Education and Civic Organizations 29,352,874
-----------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 12.8% (8.2% OF TOTAL INVESTMENTS)
3,000 California Health Facilities Financing Authority, Revenue Bonds, 7/14 at 100.00 A 3,055,740
Catholic Healthcare West, Series 2004G, 5.250%, 7/01/23
California Health Facilities Financing Authority, Revenue Bonds,
Kaiser Permanante System, Series 2006:
390 5.000%, 4/01/37 4/16 at 100.00 A+ 371,639
2,355 5.250%, 3/01/45 3/16 at 100.00 A+ 2,267,488
7,765 California Health Facilities Financing Authority, Revenue Bonds, 11/16 at 100.00 Aa3 7,361,298
Sutter Health, Series 2007A, 5.250%, 11/15/46 (UB)
1,750 California Municipal Financing Authority, Certificates of 2/17 at 100.00 Baa2 1,480,780
Participation, Community Hospitals of Central California,
Series 2007, 5.250%, 2/01/46
948 California Statewide Communities Development Authority, Revenue 7/18 at 100.00 AAA 994,515
Bonds, Saint Joseph Health System, Trust 2554, 18.719%,
7/01/47 - AGM Insured (IF)
1,245 California Statewide Community Development Authority, Revenue 3/16 at 100.00 A+ 1,163,353
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+ 1,845,906
Bonds, Kaiser Permanente System, Series 2001C, 5.250%, 8/01/31
Nuveen Investments 41
NQC | Nuveen California Investment Quality Municipal Fund, Inc. (continued)
| Portfolio of Investments February 28, 2010
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 4,270 California Statewide Community Development Authority, Revenue 11/15 at 100.00 Aa3 $ 3,907,264
Bonds, Sutter Health, Series 2005A, 5.000%, 11/15/43
1,785 Loma Linda, California, Hospital Revenue Bonds, Loma Linda 12/17 at 100.00 BBB 1,971,675
University Medical Center, Series 2008A, 8.250%, 12/01/38
-----------------------------------------------------------------------------------------------------------------------------------
25,348 Total Health Care 24,419,658
-----------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 1.2% (0.7% OF TOTAL INVESTMENTS)
310 California Housing Finance Agency, Home Mortgage Revenue Bonds, 2/16 at 100.00 AA- 333,315
Series 2006H, 5.750%, 8/01/30 - FGIC Insured (Alternative
Minimum Tax)
1,790 California Housing Finance Agency, Home Mortgage Revenue Bonds, 2/16 at 100.00 AA- 1,904,793
Series 2006K, 5.500%, 2/01/42 (Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
2,100 Total Housing/Single Family 2,238,108
-----------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.6% (0.4% OF TOTAL INVESTMENTS)
1,250 California Pollution Control Financing Authority, Solid Waste 1/16 at 102.00 BBB 1,238,138
Disposal Revenue Bonds, Waste Management Inc., Series 2002A,
5.000%, 1/01/22 (Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 3.1% (2.0% OF TOTAL INVESTMENTS)
4,750 California Statewide Communities Development Authority, Revenue 12/17 at 100.00 Ba1 3,677,165
Bonds, Inland Regional Center Project, Series 2007, 5.375%,
12/01/37
2,190 California Statewide Community Development Authority, 4/10 at 100.50 BBB 2,205,067
Certificates of Participation, Internext Group, Series 1999,
5.375%, 4/01/17
-----------------------------------------------------------------------------------------------------------------------------------
6,940 Total Long-Term Care 5,882,232
-----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 20.5% (13.2% OF TOTAL INVESTMENTS)
California, General Obligation Bonds, Various Purpose Series 2009:
15,445 6.000%, 11/01/39 11/19 at 100.00 A- 15,982,023
1,505 5.500%, 11/01/39 11/19 at 100.00 A- 1,462,017
3,600 California, Various Purpose General Obligation Bonds, Series 6/17 at 100.00 A- 3,248,496
2007, 5.000%, 6/01/37
10,060 Los Angeles, California, General Obligation Bonds, Series 2001A, 9/11 at 100.00 Aa2 10,696,597
5.000%, 9/01/21
3,250 Puerto Rico, General Obligation and Public Improvement Bonds, No Opt. Call A 3,433,593
Series 2001A, 5.500%, 7/01/20 - NPFG Insured
20 Riverside Community College District, California, General 8/14 at 100.00 AA- 21,670
Obligation Bonds, Series 2004A, 5.250%, 8/01/21 - NPFG Insured
345 Roseville Joint Union High School District, Placer County, 8/15 at 100.00 AA- 357,420
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 3,991,050
General Obligation Bonds, Series 2003E, 5.250%, 7/01/24 - AGM
Insured
-----------------------------------------------------------------------------------------------------------------------------------
37,725 Total Tax Obligation/General 39,192,866
-----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 37.2% (24.0% OF TOTAL INVESTMENTS)
3,000 California State Public Works Board, Lease Revenue Bonds, 6/14 at 100.00 BBB+ 3,065,490
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 BBB+ 2,992,890
Department of Mental Health, Hospital Addition, Series 2001A,
5.000%, 12/01/21 - AMBAC Insured
1,000 California State Public Works Board, Lease Revenue Bonds, Various 10/19 at 100.00 BBB+ 999,940
Capital Projects, Series 2009G-1, 5.750%, 10/01/30
1,390 California, Economic Recovery Revenue Bonds, Series 2004A, 7/14 at 100.00 A+ 1,551,699
5.000%, 7/01/15
425 Capistrano Unified School District, Orange County, California, 9/15 at 100.00 A 413,036
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 A+ 1,601,859
Revenue Bonds, North Fontana Redevelopment Project, Series
2003A, 5.375%, 9/01/25 - AMBAC Insured
Golden State Tobacco Securitization Corporation, California,
Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A,
Trust 2215-1:
1,175 13.740%, 6/01/38 - FGIC Insured (IF) 6/15 at 100.00 BBB+ 561,580
825 13.740%, 6/01/45 - FGIC Insured (IF) 6/15 at 100.00 BBB+ 313,682
42 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,770 Hawthorne Community Redevelopment Agency, California, Project 9/16 at 100.00 A- $ 1,712,033
Area 2 Tax Allocation Bonds, Series 2006, 5.000%, 9/01/26 -
SYNCORA GTY Insured
3,840 Hesperia Community Redevelopment Agency, California, Tax 9/15 at 100.00 BBB 3,066,701
Allocation Bonds, Series 2005A, 5.000%, 9/01/35 - SYNCORA GTY
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 173,991
445 5.125%, 9/01/36 9/16 at 100.00 N/R 373,026
770 Los Angeles Community Redevelopment Agency, California, Lease 9/15 at 100.00 A2 668,745
Revenue Bonds, Manchester Social Services Project, Series
2005, 5.000%, 9/01/37 - AMBAC Insured
10,000 Los Angeles County Public Works Financing Authority, California, 9/16 at 100.00 A 9,654,900
Lease Revenue Bonds, Series 2006B, 5.000%, 9/01/31 - FGIC
Insured
4,130 Manteca Unified School District, San Joaquin County, California, 9/11 at 101.00 A 4,292,516
Special Tax Bonds, Community Facilities District 89-2, Series
2001C, 5.000%, 9/01/23 - NPFG Insured
3,890 Ontario Redevelopment Financing Authority, California, Lease 8/11 at 101.00 A+ 4,099,477
Revenue Bonds, Capital Projects, Series 2001, 5.000%, 8/01/21
- AMBAC Insured
3,600 Ontario Redevelopment Financing Authority, San Bernardino County, No Opt. Call A 4,203,684
California, Revenue Refunding Bonds, Redevelopment Project 1,
Series 1995, 7.400%, 8/01/25 - NPFG Insured
1,685 Ontario, California, Special Tax Bonds, Community Facilities 3/10 at 100.00 N/R 1,696,846
District 5, Freeway Interchange Project, Series 1997, 6.375%,
9/01/17
1,500 Orange County, California, Special Tax Bonds, Community 8/12 at 101.00 N/R 1,364,940
Facilities District 03-1 of Ladera Ranch, Series 2004A,
5.625%, 8/15/34
1,000 Paramount Redevelopment Agency, California, Tax Allocation Bonds, 8/13 at 100.00 A 999,380
Redevelopment Project Area 1, Series 2003, 5.000%, 8/01/23 -
NPFG Insured
370 Rialto Redevelopment Agency, California, Tax Allocation Bonds, 9/15 at 100.00 A- 325,474
Merged Project Area, Series 2005A, 5.000%, 9/01/35 - SYNCORA
GTY Insured
2,000 Rohnert Park Community Development Commission, California, 8/17 at 100.00 A 1,737,260
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 AA- 460,271
Facilities, Series 2003A, 5.000%, 8/01/25 - AMBAC Insured
4,000 Sacramento City Financing Authority, California, Lease Revenue No Opt. Call A 4,282,040
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 AA+ 2,160,360
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 AA+ 3,731,687
Bonds, Convention Center Project, Series 2001F, 5.000%,
9/01/20 - NPFG Insured
6,000 San Ramon Public Financing Authority, California, Tax Allocation 2/16 at 100.00 A- 5,198,820
Revenue Bonds, Series 2006A, 5.000%, 2/01/38 - AMBAC Insured
2,840 Santa Clara Redevelopment Agency, California, Tax Allocation 6/13 at 100.00 A 2,845,368
Bonds, Bayshore North Project, Series 2003, 5.000%, 6/01/23 -
NPFG Insured
5,250 Santa Cruz County Redevelopment Agency, California, Subordinate 9/10 at 102.00 A 5,264,647
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 BBB+ 1,218,967
Certificates of Participation, Series 2007, 5.125%, 8/01/37 -
AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
72,955 Total Tax Obligation/Limited 71,031,309
-----------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 30.0% (19.3% OF TOTAL INVESTMENTS)
13,000 Alameda Corridor Transportation Authority, California, Senior 4/10 at 101.00 A 13,044,850
Lien Revenue Bonds, Series 1999A, 5.000%, 10/01/29 - NPFG
Insured
2,080 Bay Area Toll Authority, California, Revenue Bonds, San Francisco 4/16 at 100.00 AA 2,109,286
Bay Area Toll Bridge, Series 2006F, 5.000%, 4/01/31 (UB)
1,325 Bay Area Toll Authority, California, Revenue Bonds, San Francisco 4/18 at 100.00 AA 1,517,841
Bay Area Toll Bridge, Series 2008, Trust 3211, 13.541%,
4/01/39 (IF)
Nuveen Investments 43
NQC | Nuveen California Investment Quality Municipal Fund, Inc. (continued)
| Portfolio of Investments February 28, 2010
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION (continued)
$ 6,500 Foothill/Eastern Transportation Corridor Agency, California, Toll 1/14 at 101.00 BBB- $ 6,308,510
Road Revenue Refunding Bonds, Series 1999, 5.875%, 1/15/29
9,980 Long Beach, California, Harbor Revenue Bonds, Series 2000A, 5/10 at 101.00 AA 10,092,075
5.500%, 5/15/25 (Alternative Minimum Tax)
8,930 Port of Oakland, California, Revenue Bonds, Series 2000K, 5.750%, 5/10 at 100.00 A 8,934,822
11/01/29 - FGIC Insured
15,000 San Francisco Airports Commission, California, Revenue Bonds, San 5/10 at 101.00 AAA 15,280,050
Francisco International Airport, Second Series 2000, Issue
24A, 5.750%, 5/01/30 - AGM Insured (Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
56,815 Total Transportation 57,287,434
-----------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 17.8% (11.5% OF TOTAL INVESTMENTS) (4)
6,000 California Department of Water Resources, Power Supply Revenue 5/12 at 101.00 Aaa 6,641,160
Bonds, Series 2002A, 5.125%, 5/01/18 (Pre-refunded 5/01/12)
30 California Department of Water Resources, Water System Revenue 12/11 at 100.00 AAA 32,652
Bonds, Central Valley Project, Series 2001W, 5.500%, 12/01/16
(Pre-refunded 12/01/11)
2,070 California Educational Facilities Authority, Revenue Bonds, 11/10 at 100.00 A2 (4) 2,148,826
University of the Pacific, Series 2000, 5.750%, 11/01/30
(Pre-refunded 11/01/10) - MBIA Insured
2,110 California Health Facilities Financing Authority, Revenue Bonds, 4/10 at 100.50 AAA 2,130,784
Kaiser Permanente System, Series 1998B, 5.250%, 10/01/12
(Pre-refunded 4/01/10)
960 California, Economic Recovery Revenue Bonds, Series 2004A, 7/14 at 100.00 AAA 1,115,606
5.000%, 7/01/15 (Pre-refunded 7/01/14)
3,145 California, General Obligation Bonds, Series 2004, 5.250%, 4/14 at 100.00 AAA 3,676,788
4/01/34 (Pre-refunded 4/01/14)
2,000 Daly City Housing Development Finance Agency, California, Mobile 12/13 at 102.00 N/R (4) 2,388,860
Home Park Revenue Bonds, Franciscan Mobile Home Park Project,
Series 2002A, 5.850%, 12/15/32 (Pre-refunded 12/15/13)
7,505 Los Angeles County Metropolitan Transportation Authority, 7/10 at 101.00 AA+ (4) 7,713,489
California, Proposition C Second Senior Lien Sales Tax Revenue
Bonds, Series 2000A, 5.250%, 7/01/25 (Pre-refunded 7/01/10) -
FGIC Insured
2,285 Moreno Valley Unified School District, Riverside County, 8/14 at 100.00 AAA 2,696,231
California, General Obligation Bonds, Series 2004A, 5.250%,
8/01/24 (Pre-refunded 8/01/14) - AGM Insured
4,000 Puerto Rico Highway and Transportation Authority, Highway Revenue 7/12 at 100.00 AAA 4,404,440
Bonds, Series 2002D, 5.375%, 7/01/36 (Pre-refunded 7/01/12)
1,000 Tobacco Securitization Authority of Southern California, Tobacco 6/12 at 100.00 AAA 1,103,270
Settlement Asset-Backed Bonds, San Diego County Tobacco Asset
Securitization Corporation, Senior Series 2001A, 5.500%,
6/01/36 (Pre-refunded 6/01/12)
-----------------------------------------------------------------------------------------------------------------------------------
31,105 Total U.S. Guaranteed 34,052,106
-----------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 3.3% (2.1% OF TOTAL INVESTMENTS)
2,250 Long Beach Bond Finance Authority, California, Natural Gas No Opt. Call A 2,175,300
Purchase Revenue Bonds, Series 2007A, 5.500%, 11/15/37
740 Merced Irrigation District, California, Electric System Revenue 9/15 at 100.00 N/R 663,971
Bonds, Series 2005, 5.125%, 9/01/31 - SYNCORA GTY Insured
3,210 Turlock Irrigation District, California, Electric Revenue Bonds, 1/13 at 100.00 A+ 3,384,720
Series 2003A, 5.000%, 1/01/16 - NPFG Insured
-----------------------------------------------------------------------------------------------------------------------------------
6,200 Total Utilities 6,223,991
-----------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 7.4% (4.8% OF TOTAL INVESTMENTS)
3,300 California Department of Water Resources, Water System Revenue 12/11 at 100.00 AAA 3,562,878
Bonds, Central Valley Project, Series 2001W, 5.500%, 12/01/16
520 Healdsburg Public Financing Authority, California, Wastewater 4/16 at 100.00 AA- 514,738
Revenue Bonds, Series 2006, 5.000%, 4/01/36 - NPFG Insured
1,500 Los Angeles Department of Water and Power, California, Waterworks 7/14 at 100.00 AA 1,667,895
Revenue Bonds, Series 2004C, 5.250%, 7/01/19 - NPFG Insured
3,015 Oxnard Financing Authority, California, Wastewater Revenue Bonds, 6/13 at 100.00 A+ 3,331,454
Series 2003, 5.000%, 6/01/17 - FGIC Insured
1,310 San Elijo Joint Powers Authority, San Diego County, California, 3/12 at 101.00 AAA 1,415,350
Revenue Refunding Bonds, San Elijo Wastewater Facilities,
Series 2003, 5.000%, 3/01/17 - AGM Insured
44 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 3,430 Westlands Water District, California, Revenue Certificates of 9/12 at 101.00 A+ $ 3,612,818
Participation, Series 2002, 5.250%, 9/01/22 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
13,075 Total Water and Sewer 14,105,133
------------------------------------------------------------------------------------------------------------------------------------
$ 298,846 Total Investments (cost $294,369,608) - 155.3% 296,522,207
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (7.5)% (14,230,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.9% 3,515,935
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.7)% (5) (94,925,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 190,883,142
=====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's 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.
(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 32.0%.
N/R Not rated.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction. See Notes to Financial Statements, Footnote 1 - Inverse
Floating Rate Securities for more information.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
Nuveen Investments 45
NVC | Nuveen California Select Quality Municipal Fund, Inc.
| Portfolio of Investments February 28, 2010
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 7.2% (4.7% OF TOTAL INVESTMENTS)
$ 1,000 California County Tobacco Securitization Agency, Tobacco Settlement 6/15 at 100.00 BBB $ 940,540
Asset-Backed Bonds, Sonoma County Tobacco Securitization
Corporation, Series 2005, 4.250%, 6/01/21
4,510 California County Tobacco Securitization Agency, Tobacco Settlement 6/12 at 100.00 Baa3 3,829,261
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 4,424,220
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 14,579,440
Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2007A-2,
0.000%, 6/01/37
-----------------------------------------------------------------------------------------------------------------------------------
34,425 Total Consumer Staples 23,773,461
-----------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 4.9% (3.2% OF TOTAL INVESTMENTS)
290 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 A3 277,092
University of Redlands, Series 2005A, 5.000%, 10/01/35
535 California Educational Facilities Authority, Revenue Bonds, 10/18 at 100.00 AA+ 617,454
University of Southern California, Tender Option Bond Trust
09-11B, 17.624%, 10/01/38 (IF)
California Educational Facilities Authority, Revenue Bonds,
University of the Pacific, Series 2006:
200 5.000%, 11/01/21 11/15 at 100.00 A2 209,544
270 5.000%, 11/01/25 11/15 at 100.00 A2 275,192
1,595 California Infrastructure Economic Development Bank, Revenue Bonds, 10/12 at 100.00 Aa3 1,626,549
Claremont University Consortium, Series 2003, 5.125%, 10/01/24
1,740 California Infrastructure Economic Development Bond Bank, Revenue 7/15 at 100.00 Aa3 1,840,955
Bonds, Scripps Research Institute, Series 2005A, 5.000%, 7/01/24
4,787 California State Public Works Board, Lease Revenue Bonds, 3/18 at 100.00 Aa2 4,862,443
University of California Regents, Trust 1065, 9.306%, 3/01/33
(IF)
1,385 California State University, Systemwide Revenue Bonds, Series 11/15 at 100.00 Aa3 1,433,323
2005C, 5.000%, 11/01/27 - NPFG Insured
5,000 University of California, Revenue Bonds, Multi-Purpose Projects, 5/13 at 100.00 Aa1 5,097,100
Series 2003A, 5.000%, 5/15/33 - AMBAC Insured (UB)
-----------------------------------------------------------------------------------------------------------------------------------
15,802 Total Education and Civic Organizations 16,239,652
-----------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 23.0% (15.1% OF TOTAL INVESTMENTS)
1,750 ABAG Finance Authority for Non-Profit Corporations, California, 4/12 at 100.00 A- 1,766,363
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 7/10 at 100.00 A2 545,164
Facility Revenue Refunding Bonds, Catholic Healthcare West,
Series 1994A, 4.750%, 7/01/19 - NPFG Insured
675 California Health Facilities Financing Authority, Revenue Bonds, 4/16 at 100.00 A+ 643,221
Kaiser Permanante System, Series 2006, 5.000%, 4/01/37
15,145 California Health Facilities Financing Authority, Revenue Bonds, 11/16 at 100.00 Aa3 14,357,611
Sutter Health, Series 2007A, 5.250%, 11/15/46 (UB)
4,200 California Statewide Communities Development Authority, Revenue 3/15 at 100.00 A 3,921,834
Bonds, Adventist Health System West, Series 2005A, 5.000%,
3/01/35
1,621 California Statewide Communities Development Authority, Revenue 7/18 at 100.00 AAA 1,701,434
Bonds, Saint Joseph Health System, Trust 2554, 18.719%, 7/01/47
- AGM Insured (IF)
10,000 California Statewide Community Development Authority, Revenue 7/15 at 100.00 BBB 8,327,800
Bonds, Daughters of Charity Health System, Series 2005A, 5.000%,
7/01/39
9,435 California Statewide Community Development Authority, Revenue 3/16 at 100.00 A+ 8,816,253
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+ 3,150,079
Bonds, Kaiser Permanente System, Series 2001C, 5.250%, 8/01/31
1,355 California Statewide Community Development Authority, Revenue No Opt. Call A- 1,352,710
Bonds, Sherman Oaks Health System, Series 1998A, 5.000%, 8/01/22
- AMBAC Insured
46 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 5,475 California Statewide Community Development Authority, Revenue 11/16 at 100.00 Aa3 $4,528,044
Bonds, Sutter Health, Tender Option Bond Trust 3102, 15.732%,
11/15/46 (IF)
3,100 Loma Linda, California, Hospital Revenue Bonds, Loma Linda 12/17 at 100.00 BBB 3,424,198
University Medical Center, Series 2008A, 8.250%, 12/01/38
2,410 Madera County, California, Certificates of Participation, 3/20 at 100.00 A- 2,378,333
Children's Hospital Central California, Series 2010, 5.375%,
3/15/36
6,000 Madera County, California, Certificates of Participation, Valley 3/10 at 100.00 A 5,999,940
Children's Hospital Project, Series 1995, 5.750%, 3/15/28 - NPFG
Insured
5,885 Palomar Pomerado Health, California, Certificates of Participation, 11/19 at 100.00 Baa2 6,079,205
Series 2009, 6.750%, 11/01/39
9,655 Rancho Mirage Joint Powers Financing Authority, California, Revenue 7/17 at 100.00 A3 8,747,237
Bonds, Eisenhower Medical Center, Series 2007A, 5.000%, 7/01/38
-----------------------------------------------------------------------------------------------------------------------------------
80,391 Total Health Care 75,739,426
-----------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.7% (1.1% OF TOTAL INVESTMENTS)
1,000 Independent Cities Lease Finance Authority, California, Revenue 11/14 at 100.00 N/R 902,550
Bonds, Morgan Hill, Hacienda Valley Mobile Home Park, Series
2004A, 5.950%, 11/15/39
4,750 Montclair Redevelopment Agency, California, Revenue Bonds, Monterey 12/10 at 102.00 N/R 4,631,250
Manor Mobile Home Estates Project, Series 2000, 6.400%, 12/15/30
-----------------------------------------------------------------------------------------------------------------------------------
5,750 Total Housing/Multifamily 5,533,800
-----------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.2% (0.1% OF TOTAL INVESTMENTS)
540 California Housing Finance Agency, Home Mortgage Revenue Bonds, 2/16 at 100.00 AA- 580,613
Series 2006H, 5.750%, 8/01/30 - FGIC Insured (Alternative
Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.9% (1.2% OF TOTAL INVESTMENTS)
4,055 California Pollution Control Financing Authority, Solid Waste No Opt. Call BBB 4,113,514
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 1,981,020
Disposal Revenue Bonds, Waste Management Inc., Series 2002A,
5.000%, 1/01/22 (Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
6,055 Total Industrials 6,094,534
-----------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.1% (0.7% 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 Ba1 382,090
4,000 5.375%, 12/01/37 12/17 at 100.00 Ba1 3,096,560
-----------------------------------------------------------------------------------------------------------------------------------
4,460 Total Long-Term Care 3,478,650
-----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 20.3% (13.3% OF TOTAL INVESTMENTS)
5,000 California, General Obligation Bonds, Series 2003, 5.250%, 2/01/22 8/13 at 100.00 A- 5,137,950
California, General Obligation Bonds, Various Purpose Series 2009:
15,000 6.000%, 11/01/39 11/19 at 100.00 A- 15,521,550
3,500 5.500%, 11/01/39 11/19 at 100.00 A- 3,400,040
250 California, Various Purpose General Obligation Bonds, Series 2000, 5/10 at 101.00 Aaa 254,445
5.625%, 5/01/22 - FGIC Insured
3,850 Coachella Valley Unified School District, Riverside County, 8/15 at 100.00 A 3,877,143
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 - NPFG Insured 5/14 at 100.00 A+ 1,590,628
1,040 5.250%, 5/01/20 - NPFG Insured 5/14 at 100.00 A+ 1,121,068
4,000 Long Beach Community College District, California, General 5/15 at 100.00 AA- 4,080,120
Obligation Bonds, Series 2005B, 5.000%, 5/01/30 - FGIC Insured
10,060 Los Angeles, California, General Obligation Bonds, Series 2001A, 9/11 at 100.00 Aa2 10,696,597
5.000%, 9/01/20
Nuveen Investments 47
NVC | Nuveen California Select Quality Municipal Fund, Inc. (continued)
| Portfolio of Investments February 28, 2010
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
Los Rios Community College District, Sacramento, El Dorado and Yolo
Counties, California, General Obligation Bonds, Series 2006C:
$ 2,710 5.000%, 8/01/25 - AGM Insured (UB) 8/14 at 102.00 AAA $2,964,252
3,875 5.000%, 8/01/26 - AGM Insured (UB) 8/14 at 102.00 AAA 4,198,020
6,000 North Orange County Community College District, California, General No Opt. Call AA 2,214,840
Obligation Bonds, Series 2003B, 0.000%, 8/01/27 - FGIC Insured
5,000 Puerto Rico, General Obligation and Public Improvement Bonds, No Opt. Call A 5,282,450
Series 2001A, 5.500%, 7/01/20 - NPFG Insured
585 Roseville Joint Union High School District, Placer County, 8/15 at 100.00 AA- 606,060
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 3,964,394
California, General Obligation Bonds, Series 2003B, 5.000%,
8/01/22 - AGM Insured
2,000 West Contra Costa Unified School District, Contra Costa County, 8/11 at 101.00 A 2,034,880
California, General Obligation Bonds, Series 2003C, 5.000%,
8/01/22 - FGIC Insured
-----------------------------------------------------------------------------------------------------------------------------------
68,100 Total Tax Obligation/General 66,944,437
-----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 23.6% (15.5% OF TOTAL INVESTMENTS)
2,870 Bell Community Redevelopment Agency, California, Tax Allocation 10/13 at 100.00 BBB- 2,724,922
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 BBB+ 4,071,920
2,000 5.500%, 6/01/23 6/14 at 100.00 BBB+ 2,018,180
2,000 California State Public Works Board, Lease Revenue Bonds, Various 10/19 at 100.00 BBB+ 1,999,880
Capital Projects, Series 2009G-1, 5.750%, 10/01/30
4,860 California State Public Works Board, Lease Revenue Bonds, Various 11/19 at 100.00 BBB+ 5,029,711
Capital Projects, Series 2009I-1, 6.375%, 11/01/34
730 Capistrano Unified School District, Orange County, California, 9/15 at 100.00 A 709,451
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 N/R 895,590
California, Certificates of Participation, Series 2007, 5.000%,
9/01/31 - AMBAC Insured
3,000 Coronado Community Development Agency, California, Tax Allocation 9/15 at 100.00 A 2,802,870
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 1,069,799
California, General Obligation Bonds, School Facilities
Improvement District 2, Series 2004B, 5.000%, 10/01/25 - AGM
Insured
Golden State Tobacco Securitization Corporation, California,
Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A,
Trust 2215-1:
1,940 13.740%, 6/01/38 - FGIC Insured (IF) 6/15 at 100.00 BBB+ 927,204
1,355 13.740%, 6/01/45 - FGIC Insured (IF) 6/15 at 100.00 BBB+ 515,198
1,785 Hawthorne Community Redevelopment Agency, California, Project Area 9/16 at 100.00 A- 1,617,156
2 Tax Allocation Bonds, Series 2006, 5.250%, 9/01/36 - SYNCORA
GTY Insured
1,500 Hesperia Unified School District, San Bernardino County, 2/17 at 100.00 BBB+ 1,291,965
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 A 439,080
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:
330 5.000%, 9/01/26 9/16 at 100.00 N/R 294,446
760 5.125%, 9/01/36 9/16 at 100.00 N/R 637,078
3,000 La Quinta Redevelopment Agency, California, Tax Allocation Bonds, 9/11 at 102.00 A+ 3,046,290
Redevelopment Project Area 1, Series 2001, 5.000%, 9/01/21 -
AMBAC Insured
3,510 Long Beach Bond Financing Authority, California, Lease Revenue and 4/10 at 100.00 A+ 3,511,053
Refunding Bonds, Civic Center Project, Series 1997A, 5.000%,
10/01/27 - NPFG Insured
4,315 Los Angeles Community Redevelopment Agency, California, Lease 9/15 at 100.00 A2 3,747,578
Revenue Bonds, Manchester Social Services Project, Series 2005,
5.000%, 9/01/37 - AMBAC Insured
48 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 8,175 Los Angeles, California, Municipal Improvement Corporation, Lease 1/17 at 100.00 A+ $7,880,945
Revenue Bonds, Police Headquarters, Series 2006A, 4.750%,
1/01/31 - FGIC Insured
2,580 Oakland Redevelopment Agency, California, Subordinate Lien Tax 3/13 at 100.00 A 2,664,185
Allocation Bonds, Central District Redevelopment Project, Series
2003, 5.500%, 9/01/18 - FGIC Insured
3,605 Oakland State Building Authority, California, Lease Revenue Bonds, 4/10 at 100.00 BBB+ 3,604,135
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 A+ 2,427,630
Revenue Bonds, Capital Projects, Series 2001, 5.250%, 8/01/18 -
AMBAC Insured
1,000 Orange County, California, Special Tax Bonds, Community Facilities 8/12 at 101.00 N/R 956,720
District 03-1 of Ladera Ranch, Series 2004A, 5.500%, 8/15/24
1,120 Panama-Buena Vista Union School District, California, Certificates 9/16 at 100.00 A 1,169,493
of Participation, School Construction Project, Series 2006,
5.000%, 9/01/23 - NPFG Insured
8,750 Pittsburg Redevelopment Agency, California, Tax Allocation Bonds, No Opt. Call N/R 3,877,738
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- 558,584
Merged Project Area, Series 2005A, 5.000%, 9/01/35 - SYNCORA GTY
Insured
85 Riverside Public Financing Authority, California, Revenue Bonds, 8/10 at 100.00 N/R 85,524
Multiple Project Loans, Series 1991A, 8.000%, 2/01/18
820 Roseville, California, Certificates of Participation, Public 8/13 at 100.00 AA- 820,484
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 AA+ 2,322,407
Bonds, Convention Center Project, Series 2001F, 5.000%, 9/01/20
- NPFG Insured
1,365 San Mateo Union High School District, San Mateo County, California, 12/17 at 100.00 N/R 1,255,554
Certificates of Participation, Phase 1, Series 2007A, 5.000%,
12/15/30 - AMBAC Insured
4,625 Santa Clara Redevelopment Agency, California, Tax Allocation Bonds, 6/13 at 100.00 A 4,765,508
Bayshore North Project, Series 2003, 5.000%, 6/01/17 - NPFG
Insured
6,870 Vernon Redevelopment Agency, California, Tax Allocation Bonds, 9/15 at 100.00 A 6,026,914
Industrial Redevelopment Project, Series 2005, 5.000%, 9/01/35 -
NPFG Insured
2,175 Washington Unified School District, Yolo County, California, 8/17 at 100.00 BBB+ 2,095,852
Certificates of Participation, Series 2007, 5.125%, 8/01/37 -
AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
86,705 Total Tax Obligation/Limited 77,861,044
-----------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 18.1% (11.9% OF TOTAL INVESTMENTS)
2,210 Bay Area Toll Authority, California, Revenue Bonds, San Francisco 4/16 at 100.00 AA 2,241,117
Bay Area Toll Bridge, Series 2006F, 5.000%, 4/01/31 (UB)
2,450 Bay Area Toll Authority, California, Revenue Bonds, San Francisco 4/18 at 100.00 AA 2,806,573
Bay Area Toll Bridge, Series 2008, Trust 3211, 13.541%, 4/01/39
(IF)
8,300 Foothill/Eastern Transportation Corridor Agency, California, Toll 7/10 at 100.00 A 7,091,852
Road Revenue Bonds, Series 1995A, 5.000%, 1/01/35 - NPFG Insured
10,500 Foothill/Eastern Transportation Corridor Agency, California, Toll 1/14 at 101.00 BBB- 10,190,670
Road Revenue Refunding Bonds, Series 1999, 5.875%, 1/15/29
7,940 Port of Oakland, California, Revenue Bonds, Series 2000K, 5.750%, 5/10 at 100.00 A 7,944,288
11/01/29 - FGIC Insured
20,000 San Francisco Airports Commission, California, Revenue Bonds, San 5/10 at 101.00 AAA 20,373,400
Francisco International Airport, Second Series 2000, Issue 25,
5.750%, 5/01/30 - AGM Insured (Alternative Minimum Tax)
5,000 San Francisco Airports Commission, California, Revenue Refunding 5/11 at 100.00 A1 5,205,700
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 Refunding 5/12 at 100.00 A1 3,878,816
Bonds, San Francisco International Airport, Second Series 2002,
Issue 28A, 5.250%, 5/01/18 - NPFG Insured (Alternative Minimum
Tax)
-----------------------------------------------------------------------------------------------------------------------------------
60,065 Total Transportation 59,732,416
-----------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 25.9% (17.0% OF TOTAL INVESTMENTS) (4)
9,750 California Department of Water Resources, Power Supply Revenue 5/12 at 101.00 Aaa 10,791,885
Bonds, Series 2002A, 5.125%, 5/01/18 (Pre-refunded 5/01/12)
Nuveen Investments 49
NVC | Nuveen California Select Quality Municipal Fund, Inc. (continued)
| Portfolio of Investments February 28, 2010
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 3,000 California Pollution Control Financing Authority, Solid Waste 4/10 at 100.00 Aaa $ 3,621,720
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 N/R (4) 4,629,221
1,845 6.500%, 7/01/20 (Pre-refunded 7/01/10) 7/10 at 101.00 N/R (4) 1,900,092
4,450 California, Various Purpose General Obligation Bonds, Series 5/10 at 101.00 Aaa 4,537,888
2000, 5.625%, 5/01/22 (Pre-refunded 5/01/10) - FGIC Insured
5,515 Fresno Unified School District, Fresno County, California, 8/10 at 101.00 A+ (4) 5,670,523
General Obligation Bonds, Series 2001E, 5.000%, 8/01/25 -
FGIC Insured (ETM)
3,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 3,527,610
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) 3,083,340
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 7/10 at 100.00 AA- (4) 6,139,203
Obligation 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 A3 (4) 2,210,642
3,000 5.000%, 8/01/26 (Pre-refunded 8/01/11) - MBIA Insured 8/11 at 100.00 A3 (4) 3,196,110
60 Port of Oakland, California, Revenue Bonds, Series 2000K, 5/10 at 100.00 A (4) 60,521
5.750%, 11/01/29 (Pre-refunded 5/01/10) - FGIC Insured
10,000 Puerto Rico Highway and Transportation Authority, Highway 7/10 at 101.00 BBB (4) 10,301,300
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 4,167,800
Obligation Bonds, Series 2000A, 5.500%, 10/01/32
(Pre-refunded 10/01/10)
2,000 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call AAA 2,549,620
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 19,017,867
California, Water Revenue Bonds, Series 2001A, 5.000%,
11/01/24 (Pre-refunded 11/01/11) - AGM Insured
------------------------------------------------------------------------------------------------------------------------------------
79,890 Total U.S. Guaranteed 85,405,342
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 17.3% (11.4% OF TOTAL INVESTMENTS)
2,000 Anaheim Public Finance Authority, California, Revenue Refunding 10/12 at 100.00 AAA 2,179,880
Bonds, Electric Generating System, Series 2002B, 5.250%,
10/01/18 - AGM Insured
1,810 Anaheim Public Finance Authority, California, Second Lien 10/14 at 100.00 A+ 1,933,062
Electric Distribution Revenue Bonds, Series 2004, 5.250%,
10/01/21 - NPFG Insured
10,350 California Pollution Control Financing Authority, Revenue Bonds, No Opt. Call Aa3 12,188,988
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 4,282,680
Participation, Electric System Revenue Bonds, Series 2003,
5.250%, 11/01/23 - AGM Insured
3,855 Long Beach Bond Finance Authority, California, Natural Gas No Opt. Call A 3,727,014
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 AA- 5,282,900
System Revenue Bonds, Series 2001A-2, 5.375%, 7/01/20 - NPFG
Insured
5,000 Los Angeles Department of Water and Power, California, Power 7/15 at 100.00 AAA 5,152,100
System Revenue Bonds, Series 2005A-1, 5.000%, 7/01/31 - AGM
Insured (UB)
5,225 Los Angeles, California, Sanitation Equipment Charge Revenue 2/11 at 100.00 AAA 5,468,746
Bonds, Series 2001A, 5.250%, 2/01/18 - AGM Insured
1,025 Los Angeles, California, Sanitation Equipment Charge Revenue 2/14 at 100.00 AA 1,088,601
Bonds, Series 2004A, 5.000%, 2/01/22 - AMBAC Insured
Merced Irrigation District, California, Electric System Revenue
Bonds, Series 2005:
1,260 5.125%, 9/01/31 - SYNCORA GTY Insured 9/15 at 100.00 N/R 1,130,548
2,800 5.250%, 9/01/36 - SYNCORA GTY Insured 9/15 at 100.00 N/R 2,485,784
50 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES (continued)
$ 4,360 Sacramento Municipal Utility District, California, Electric 8/12 at 100.00 AAA $ 4,576,168
Revenue Refunding Bonds, Series 2002Q, 5.250%, 8/15/19 - AGM
Insured
3,805 Southern California Public Power Authority, California, Milford No Opt. Call AA- 3,960,928
Wind Corridor Phase I Revenue Bonds, Series 2010-1, 5.000%,
7/01/28
3,460 Southern California Public Power Authority, Revenue Bonds, 7/13 at 100.00 A+ 3,666,770
Magnolia Power Project, Series 2003-1A, 5.000%, 7/01/20 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
53,950 Total Utilities 57,124,169
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 7.3% (4.8% OF TOTAL INVESTMENTS)
1,185 Burbank, California, Wastewater System Revenue Bonds, Series 6/14 at 100.00 AA+ 1,226,724
2004A, 5.000%, 6/01/24 - AMBAC Insured
890 Healdsburg Public Financing Authority, California, Wastewater 4/16 at 100.00 AA- 880,993
Revenue Bonds, Series 2006, 5.000%, 4/01/36 - NPFG Insured
1,250 Indio Water Authority, California, Water Revenue Bonds, Series 4/16 at 100.00 A+ 1,258,425
2006, 5.000%, 4/01/31 - AMBAC Insured
4,705 Madera Irrigation District. California, Water Revenue Refunding 1/18 at 100.00 A- 4,785,550
Bonds, Series 2008, 5.500%, 1/01/38
3,750 Metropolitan Water District of Southern California, Water 10/14 at 100.00 AAA 3,901,913
Revenue Bonds, Series 2004B-3, 5.000%, 10/01/29 - NPFG
Insured
1,510 Orange County Sanitation District, California, Certificates of 2/19 at 100.00 AAA 1,781,860
Participation, Series 2007, Trust 3020, 17.692%, 2/01/35 (IF)
2,000 Pico Rivera Water Authority, California, Revenue Bonds, Series 12/11 at 102.00 N/R 1,858,020
2001A, 6.250%, 12/01/32
2,525 Sacramento County Sanitation District Financing Authority, No Opt. Call AA 2,982,984
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 - NPFG Insured 4/13 at 100.00 A+ 2,294,517
2,960 5.250%, 10/01/20 - NPFG Insured 4/13 at 100.00 A+ 3,171,255
------------------------------------------------------------------------------------------------------------------------------------
22,895 Total Water and Sewer 24,142,241
------------------------------------------------------------------------------------------------------------------------------------
$ 519,028 Total Investments (cost $499,197,884) - 152.5% 502,649,785
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (6.2)% (20,585,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.7% 5,503,973
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (48.0)% (5) (158,025,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 329,543,758
=====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's 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.
(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 31.4%.
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. See Notes to Financial Statements, Footnote 1 - Inverse
Floating Rate Securities for more information.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
Nuveen Investments 51
NUC | Nuveen California Quality Income Municipal Fund, Inc.
| Portfolio of Investments February 28, 2010
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 5.9% (3.8% OF TOTAL INVESTMENTS)
$ 5,000 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 Baa3 $ 4,689,800
Settlement Asset-Backed Bonds, Alameda County Tobacco Asset
Securitization Corporation, Series 2002, 5.750%, 6/01/29
960 California County Tobacco Securitization Agency, Tobacco 6/15 at 100.00 BBB 902,918
Settlement Asset-Backed Bonds, Sonoma County Tobacco
Securitization Corporation, Series 2005, 4.250%, 6/01/21
4,510 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 Baa3 3,829,261
Settlement Asset-Backed Bonds, Stanislaus County Tobacco
Funding Corporation, Series 2002A, 5.500%, 6/01/33
7,530 California Statewide Financing Authority, Tobacco Settlement 5/12 at 100.00 Baa3 7,386,554
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 2,144,129
Enhanced Tobacco Settlement Asset-Backed Bonds, Series
2007A-2, 0.000%, 6/01/37
------------------------------------------------------------------------------------------------------------------------------------
21,370 Total Consumer Staples 18,952,662
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 7.6% (4.9% OF TOTAL
INVESTMENTS)
280 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 A3 267,537
University of Redlands, Series 2005A, 5.000%, 10/01/35
1,935 California Educational Facilities Authority, Revenue Bonds, 10/18 at 100.00 AA+ 2,233,222
University of Southern California, Tender Option Bond Trust
09-11B, 17.624%, 10/01/38 (IF)
2,785 California Educational Facilities Authority, Revenue Bonds, 11/10 at 100.00 A2 2,795,249
University of the Pacific, Series 2000, 5.750%, 11/01/30 -
NPFG 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 204,305
260 5.000%, 11/01/25 11/15 at 100.00 A2 265,000
4,640 California State Public Works Board, Lease Revenue Bonds, 3/18 at 100.00 Aa2 4,713,126
University of California Regents, Trust 1065, 9.306%, 3/01/33
(IF)
4,000 California State Public Works Board, Lease Revenue Refunding 3/10 at 100.00 Baa2 4,014,280
Bonds, Community Colleges Projects, Series 1996B, 5.625%,
3/01/19 - AMBAC Insured
6,400 California State University, Systemwide Revenue Bonds, Series 11/12 at 100.00 Aa3 6,626,176
2002A, 5.000%, 11/01/20 - AMBAC Insured
1,000 San Diego County, California, Certificates of Participation, 9/15 at 102.00 Baa3 835,480
Burnham Institute, Series 2006, 5.000%, 9/01/34
2,500 University of California, Revenue Bonds, Multi-Purpose Projects, 5/13 at 100.00 Aa1 2,548,550
Series 2003A, 5.000%, 5/15/33 - AMBAC Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
23,995 Total Education and Civic Organizations 24,502,925
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 19.8% (12.7% OF TOTAL INVESTMENTS)
1,750 ABAG Finance Authority for Non-Profit Corporations, California, 4/12 at 100.00 A- 1,766,363
Cal-Mortgage Insured Revenue Bonds, Sansum-Santa Barbara
Medical Foundation Clinic, Series 2002A, 5.500%, 4/01/21
640 California Health Facilities Financing Authority, Revenue Bonds, 4/16 at 100.00 A+ 609,869
Kaiser Permanante System, Series 2006, 5.000%, 4/01/37
14,550 California Health Facilities Financing Authority, Revenue Bonds, 11/16 at 100.00 Aa3 13,793,546
Sutter Health, Series 2007A, Trust 3146, 5.250%, 11/15/46 (UB)
2,855 California Municipal Financing Authority, Certificates of 2/17 at 100.00 Baa2 2,415,787
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 Aa2 1,266,283
of California - Davis Medical Center, Series 2004II-A,
5.000%, 11/01/23 - NPFG Insured
1,571 California Statewide Communities Development Authority, Revenue 7/18 at 100.00 AAA 1,648,953
Bonds, Saint Joseph Health System, Trust 2554, 18.719%,
7/01/47 - AGM Insured (IF)
535 California Statewide Community Development Authority, No Opt. Call A2 570,230
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 1,373,625
Bonds, Daughters of Charity Health System, Series 2005A,
5.250%, 7/01/30
17,075 California Statewide Community Development Authority, Revenue 3/16 at 100.00 A+ 15,955,222
Bonds, Kaiser Permanante System, Series 2006, 5.000%, 3/01/41
52 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 3,015 California Statewide Community Development Authority, Revenue 8/16 at 100.00 A+ $ 3,024,678
Bonds, Kaiser Permanente System, Series 2001C, 5.250%, 8/01/31
17,470 California Statewide Community Development Authority, Revenue 8/17 at 100.00 Aa3 16,802,995
Bonds, Sutter Health, Series 2003, 5.000%, 8/15/38 - AMBAC
Insured (UB)
3,025 Loma Linda, California, Hospital Revenue Bonds, Loma Linda 12/17 at 100.00 BBB 3,341,355
University Medical Center, Series 2008A, 8.250%, 12/01/38
1,000 Madera County, California, Certificates of Participation, 3/20 at 100.00 A- 986,860
Children's Hospital Central California, Series 2010, 5.375%,
3/15/36
------------------------------------------------------------------------------------------------------------------------------------
66,211 Total Health Care 63,555,766
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 2.6% (1.7% OF TOTAL INVESTMENTS)
1,000 Independent Cities Lease Finance Authority, California, Revenue 11/14 at 100.00 N/R 902,550
Bonds, Morgan Hill, Hacienda Valley Mobile Home Park, Series
2004A, 5.950%, 11/15/39
1,925 Irvine, California, Mobile Home Park Revenue Bonds, Meadows 3/10 at 100.00 N/R 1,916,434
Mobile Home Park, Series 1998A, 5.700%, 3/01/18
2,120 Oceanside, California, Mobile Home Park Revenue Bonds, Laguna 3/10 at 100.00 N/R 1,959,558
Vista Mobile Estates Acquisition Project, Series 1998,
5.800%, 3/01/28
2,960 Riverside County, California, Mobile Home Park Revenue Bonds, 3/10 at 101.00 N/R 2,724,887
Bravo Mobile Home Park Project, Series 1999A, 5.900%, 3/20/29
895 Yolo County Housing Authority, California, Revenue Refunding 5/10 at 100.00 Aa2 898,088
Bonds, Russell Park Apartments, Series 1992A, 7.000%, 11/01/14
------------------------------------------------------------------------------------------------------------------------------------
8,900 Total Housing/Multifamily 8,401,517
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 5.1% (3.3% OF TOTAL INVESTMENTS)
515 California Housing Finance Agency, Home Mortgage Revenue Bonds, 2/16 at 100.00 AA- 553,733
Series 2006H, 5.750%, 8/01/30 - FGIC Insured (Alternative
Minimum Tax)
17,700 California Housing Finance Agency, Home Mortgage Revenue Bonds, 2/16 at 100.00 AA- 15,791,232
Series 2007M, 4.625%, 8/01/26 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
18,215 Total Housing/Single Family 16,344,965
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.6% (0.4% OF TOTAL INVESTMENTS)
2,000 California Pollution Control Financing Authority, Solid Waste 1/16 at 102.00 BBB 1,981,020
Disposal Revenue Bonds, Waste Management Inc., Series 2002A,
5.000%, 1/01/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 0.9% (0.5% OF TOTAL INVESTMENTS)
3,500 California Statewide Communities Development Authority, Revenue 12/17 at 100.00 Ba1 2,709,490
Bonds, Inland Regional Center Project, Series 2007, 5.375%,
12/01/37
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 18.1% (11.5% OF TOTAL INVESTMENTS)
1,900 Azusa Unified School District, Los Angeles County, California, 7/12 at 100.00 AAA 2,065,224
General Obligation Bonds, Series 2002, 5.375%, 7/01/20 - AGM
Insured
80 California, General Obligation Bonds, Series 2000, 5.500%, 6/10 at 100.00 A- 80,126
6/01/25
16,000 California, General Obligation Bonds, Various Purpose Series 11/19 at 100.00 A- 16,556,320
2009, 6.000%, 11/01/39
1,370 Fremont-Newark Community College District, Alameda County, 8/11 at 101.00 AA- 1,462,955
California, General Obligation Bonds, Series 2002A, 5.375%,
8/01/20 - NPFG Insured
3,610 Hartnell Community College District, California, General 6/16 at 100.00 AAA 3,683,608
Obligation Bonds, Series 2006B, 5.000%, 6/01/29 - AGM Insured
(UB)
5,255 Livermore Valley Joint Unified School District, Alameda County, 8/11 at 100.00 AAA 5,398,934
California, General Obligation Bonds, Election of 1999,
Series 2001, 5.125%, 8/01/26 - AGM Insured
2,645 Long Beach Community College District, California, General 5/15 at 100.00 AA- 2,697,979
Obligation Bonds, Series 2005B, 5.000%, 5/01/30 - FGIC Insured
1,170 Los Angeles Unified School District, California, General 7/13 at 100.00 AAA 1,286,052
Obligation Bonds, Series 2003F, 5.000%, 7/01/17 - AGM Insured
565 Roseville Joint Union High School District, Placer County, 8/15 at 100.00 AA- 585,340
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 Aa3 1,533,780
California, General Obligation Bonds, Series 2005, 5.000%,
7/01/27 - NPFG Insured
Nuveen Investments 53
NUC | Nuveen California Quality Income Municipal Fund, Inc. (continued)
| Portfolio of Investments February 28, 2010
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 6,760 San Diego Unified School District, San Diego County, California, 7/13 at 101.00 AAA $ 7,708,428
General Obligation Bonds, Series 2003E, 5.250%, 7/01/21 - AGM
Insured
515 San Joaquin Delta Community College District, California, General 8/15 at 100.00 AAA 530,517
Obligation Bonds, Series 2005A, 5.000%, 8/01/29 - AGM Insured
1,500 San Jose Unified School District, Santa Clara County, California, 8/15 at 100.00 AA 1,575,510
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 7,200,630
California, General Obligation Bonds, Series 2003, 5.000%,
8/01/23 - AGM Insured (UB)
1,390 South Pasadena Unified School District, Los Angeles County, 8/13 at 100.00 AA- 1,462,377
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 4,114,695
California, General Obligation Bonds, Series 2003B, 5.000%,
8/01/23 - AGM Insured
------------------------------------------------------------------------------------------------------------------------------------
55,050 Total Tax Obligation/General 57,942,475
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 29.3% (18.7% OF TOTAL INVESTMENTS)
1,655 Bell Community Housing Authority, California, Lease Revenue 10/15 at 100.00 BBB+ 1,375,288
Bonds, Series 2005, 5.000%, 10/01/36 - AMBAC Insured
1,200 Burbank Public Financing Authority, California, Revenue Bonds, 12/12 at 100.00 BBB+ 1,200,084
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 BBB+ 3,179,108
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 BBB+ 2,040,049
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 BBB+ 5,226,660
Department of Mental Health, Coalinga State Hospital, Series
2004A, 5.500%, 6/01/20
1,000 California State Public Works Board, Lease Revenue Bonds, Various 10/19 at 100.00 BBB+ 999,940
Capital Projects, Series 2009G-1, 5.750%, 10/01/30
1,605 California, Economic Recovery Revenue Bonds, Series 2004A, 7/14 at 100.00 A+ 1,791,710
5.000%, 7/01/15
690 Capistrano Unified School District, Orange County, California, 9/15 at 100.00 A 670,577
Special Tax Bonds, Community Facilities District, Series 2005,
5.000%, 9/01/24 - FGIC Insured
3,000 Coachella Valley Unified School District, Riverside County, 9/16 at 100.00 N/R 2,686,770
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 8/10 at 100.00 N/R 968,840
2,765 5.700%, 8/01/28 8/10 at 100.00 N/R 2,392,223
1,250 Coronado Community Development Agency, California, Tax Allocation 9/15 at 100.00 A 1,167,863
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 A 3,113,795
California, Special Tax Bonds, Community Facilities District
98-1, Series 2003, 5.500%, 9/01/33 - NPFG Insured
1,025 Fresno, California, Certificates of Participation, Street 6/10 at 100.00 AA- 1,039,996
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 13.740%, 6/01/38 - FGIC Insured (IF) 6/15 at 100.00 BBB+ 900,917
1,320 13.740%, 6/01/45 - FGIC Insured (IF) 6/15 at 100.00 BBB+ 501,890
9,435 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 AAA 9,099,869
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:
320 5.000%, 9/01/26 9/16 at 100.00 N/R 285,523
735 5.125%, 9/01/36 9/16 at 100.00 N/R 616,121
3,245 Los Angeles Community Redevelopment Agency, California, Lease 9/15 at 100.00 A2 2,818,283
Revenue Bonds, Manchester Social Services Project, Series
2005, 5.000%, 9/01/37 - AMBAC Insured
54 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,350 Los Angeles Community Redevelopment Agency, California, 3/13 at 100.00 BBB- $ 1,320,449
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 5,369,338
California, Proposition A First Tier Senior Sales Tax
Revenue Bonds, Series 2003A, 5.000%, 7/01/16 - AGM Insured
15,300 Ontario Redevelopment Financing Authority, San Bernardino No Opt. Call A 17,865,657
County, California, Revenue Refunding Bonds, Redevelopment
Project 1, Series 1995, 7.400%, 8/01/25 - NPFG Insured
1,170 Panama-Buena Vista Union School District, California, 9/16 at 100.00 A 1,214,741
Certificates of Participation, School Construction Project,
Series 2006, 5.000%, 9/01/24 - NPFG Insured
Redding Redevelopment Agency, California, Tax Allocation
Bonds, Canby-Hilltop-Cypress Area Project, Series 2003A:
1,500 5.000%, 9/01/17 - NPFG Insured 9/13 at 100.00 A 1,541,625
1,500 5.000%, 9/01/20 - NPFG Insured 9/13 at 100.00 A 1,514,070
600 Rialto Redevelopment Agency, California, Tax Allocation Bonds, 9/15 at 100.00 A- 527,796
Merged Project Area, Series 2005A, 5.000%, 9/01/35 -
SYNCORA GTY Insured
4,320 Richmond Joint Powers Financing Authority, California, Tax 9/13 at 100.00 A+ 4,378,363
Allocation Bonds, Series 2003A, 5.250%, 9/01/22 - NPFG
Insured
2,000 Rohnert Park Community Development Commission, California, 8/17 at 100.00 A 1,737,260
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 AA- 745,440
Facilities, Series 2003A, 5.000%, 8/01/25 - AMBAC Insured
8,625 Sacramento City Financing Authority, California, Capital 12/16 at 100.00 A1 8,185,643
Improvement Revenue Bonds, 300 Richards Boulevard, Series
2006C, 5.000%, 12/01/36 - AMBAC Insured
2,500 San Jose Financing Authority, California, Lease Revenue 9/11 at 100.00 AA+ 2,639,100
Refunding Bonds, Convention Center Project, Series 2001F,
5.000%, 9/01/20 - NPFG Insured
2,770 Santa Ana Community Redevelopment Agency, Orange County, 9/13 at 100.00 A 2,826,536
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 BBB+ 2,013,945
Certificates of Participation, Series 2007, 5.125%, 8/01/37
- AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
94,730 Total Tax Obligation/Limited 93,955,469
-----------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 13.6% (8.7% OF TOTAL INVESTMENTS)
3,950 Bay Area Toll Authority, California, Revenue Bonds, San 4/16 at 100.00 AA 4,005,616
Francisco Bay Area Toll Bridge, Series 2006F, 5.000%,
4/01/31 (UB)
970 Bay Area Toll Authority, California, Revenue Bonds, San 4/18 at 100.00 AA 1,111,174
Francisco Bay Area Toll Bridge, Series 2008, Trust 3211,
13.541%, 4/01/39 (IF)
11,000 Foothill/Eastern Transportation Corridor Agency, California, 1/14 at 101.00 BBB- 10,675,940
Toll Road Revenue Refunding Bonds, Series 1999, 5.875%,
1/15/29
2,000 Orange County Transportation Authority, California, Toll Road 8/13 at 100.00 A1 2,063,180
Revenue Bonds, 91 Express Lanes Project, Series 2003A,
5.000%, 8/15/20 - AMBAC Insured
20,000 San Francisco Airports Commission, California, Revenue Bonds, 5/10 at 101.00 AAA 20,373,400
San Francisco International Airport, Second Series 2000,
Issue 25, 5.750%, 5/01/30 - AGM 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 - NPFG Insured (Alternative Minimum Tax) 5/12 at 100.00 A1 1,569,910
3,865 5.250%, 5/01/19 - NPFG Insured (Alternative Minimum Tax) 5/12 at 100.00 A1 3,933,797
-----------------------------------------------------------------------------------------------------------------------------------
43,265 Total Transportation 43,733,017
-----------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 37.5% (23.9% OF TOTAL INVESTMENTS) (4)
7,325 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 N/R (4) 7,820,683
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 9,961,740
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 A2 (4) 6,425,715
University of the Pacific, Series 2000, 5.750%, 11/01/30
(Pre-refunded 11/01/10) - MBIA Insured
Nuveen Investments 55
NUC | Nuveen California Quality Income Municipal Fund, Inc. (continued)
| Portfolio of Investments February 28, 2010
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 8,000 California Pollution Control Financing Authority, Solid Waste 4/10 at 100.00 Aaa $ 9,657,920
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 AAA 2,154,485
5.250%, 4/01/32 (Pre-refunded 4/01/12)
1,515 California Statewide Community Development Authority, Water and 10/13 at 101.00 AAA 1,763,884
Wastewater Revenue Bonds, Pooled Financing Program, Series
2004A, 5.250%, 10/01/24 (Pre-refunded 10/01/13) - AGM Insured
1,110 California, Economic Recovery Revenue Bonds, Series 2004A, 7/14 at 100.00 AAA 1,289,920
5.000%, 7/01/15 (Pre-refunded 7/01/14)
2,500 California, General Obligation Bonds, Series 2004, 5.125%, 2/14 at 100.00 AAA 2,895,225
2/01/27 (Pre-refunded 2/01/14)
4,440 Coast Community College District, Orange County, California, 8/13 at 100.00 Aa2 (4) 5,029,721
General Obligation Refunding Bonds, Series 2003A, 5.000%,
8/01/22 (Pre-refunded 8/01/13) - MBIA Insured
1,615 Compton Unified School District, Los Angeles County, 9/13 at 100.00 A (4) 1,866,133
California, General Obligation Bonds, Series 2003A, 5.375%,
9/01/19 (Pre-refunded 9/01/13) - MBIA Insured
12,805 Contra Costa County, California, GNMA Mortgage-Backed No Opt. Call AAA 17,429,654
Securities 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 N/R (4) 3,583,290
Mobile Home Park Revenue Bonds, Franciscan Mobile Home Park
Project, Series 2002A, 5.850%, 12/15/32 (Pre-refunded
12/15/13)
4,000 Los Angeles County Metropolitan Transportation Authority, 7/10 at 101.00 AA+ (4) 4,111,120
California, Proposition C Second Senior Lien Sales Tax
Revenue Bonds, Series 2000A, 5.250%, 7/01/25 (Pre-refunded
7/01/10) - FGIC Insured
3,005 Monterey County, California, Certificates of Participation, 8/11 at 100.00 A3 (4) 3,201,437
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 2,802,429
California, General Obligation Bonds, Series 2004A, 5.250%,
8/01/24 (Pre-refunded 8/01/14) - AGM Insured
5,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 5,209,750
Obligation Bonds, Series 2000A, 5.500%, 10/01/32 (ETM)
2,685 Sacramento County, California, Airport System Revenue Bonds, 7/12 at 100.00 AAA 2,969,879
Series 2002A, 5.250%, 7/01/21 (Pre-refunded 7/01/12) - AGM
Insured
10,850 San Bernardino County, California, GNMA Mortgage-Backed No Opt. Call AAA 12,540,105
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 A1 (4) 3,297,030
Refunding Bonds, San Francisco International Airport, Second
Series 2002, Issue 28B, 5.250%, 5/01/22 (Pre-refunded
5/01/12) - MBIA Insured
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) 5,449,222
10,255 5.000%, 9/01/19 (Pre-refunded 9/01/10) - FGIC Insured 9/10 at 101.00 AA (4) 10,613,822
-----------------------------------------------------------------------------------------------------------------------------------
105,900 Total U.S. Guaranteed 120,073,164
-----------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 8.2% (5.2% OF TOTAL INVESTMENTS)
3,695 Long Beach Bond Finance Authority, California, Natural Gas No Opt. Call A 3,329,454
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 515,210
System Revenue Bonds, Series 2005A-1, 5.000%, 7/01/31 - AGM
Insured (UB)
Merced Irrigation District, California, Electric System Revenue
Bonds, Series 2005:
1,235 5.125%, 9/01/31 - SYNCORA GTY Insured 9/15 at 100.00 N/R 1,108,116
1,500 5.250%, 9/01/36 - SYNCORA GTY Insured 9/15 at 100.00 N/R 1,331,670
5,000 Merced Irrigation District, California, Revenue Certificates of 9/13 at 102.00 Baa3 4,509,050
Participation, Electric System Project, Series 2003, 5.700%,
9/01/36
1,200 Sacramento Municipal Utility District, California, Electric No Opt. Call A+ 1,251,756
Revenue Bonds, Series 2004T, 5.250%, 5/15/23 - FGIC Insured
2,410 Sacramento Municipal Utility District, California, Electric 8/12 at 100.00 AAA 2,513,437
Revenue Refunding Bonds, Series 2002Q, 5.250%, 8/15/21 - AGM
Insured
1,500 Southern California Public Power Authority, California, Milford No Opt. Call AA- 1,561,470
Wind Corridor Phase I Revenue Bonds, Series 2010-1, 5.000%,
7/01/28
56 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES (continued)
$ 4,000 Southern California Public Power Authority, Revenue Bonds, 7/13 at 100.00 A+ $ 4,239,039
Magnolia Power Project, Series 2003-1A, 5.000%, 7/01/20 -
AMBAC Insured
5,500 Southern California Public Power Authority, Revenue Bonds, No Opt. Call A+ 5,943,024
Multiple Projects, Series 1989, 6.750%, 7/01/11
------------------------------------------------------------------------------------------------------------------------------------
26,540 Total Utilities 26,302,226
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 7.4% (4.7% OF TOTAL INVESTMENTS)
5,525 California Statewide Community Development Authority, Water 10/13 at 101.00 AAA 5,795,116
and Wastewater Revenue Bonds, Pooled Financing Program,
Series 2004A, 5.250%, 10/01/24 - AGM Insured
1,600 Eastern Municipal Water District, California, Water and 7/18 at 100.00 AA 1,944,543
Sewerage System Revenue Certificates of Participation,
Series 2008, Trust 3220, 14.671%, 7/01/35 (IF)
Goleta Water District, California, Certificates of
Participation Revenue Bonds, Series 2003:
1,000 5.250%, 12/01/20 - NPFG Insured 12/13 at 100.00 A+ 1,083,100
1,440 5.250%, 12/01/21 - NPFG Insured 12/13 at 100.00 A+ 1,552,953
1,205 5.250%, 12/01/22 - NPFG Insured 12/13 at 100.00 A+ 1,241,222
850 Healdsburg Public Financing Authority, California, Wastewater 4/16 at 100.00 AA- 841,398
Revenue Bonds, Series 2006, 5.000%, 4/01/36 - NPFG Insured
1,250 Indio Water Authority, California, Water Revenue Bonds, Series 4/16 at 100.00 A+ 1,258,425
2006, 5.000%, 4/01/31 - AMBAC Insured
670 Metropolitan Water District of Southern California, Waterworks 7/19 at 100.00 AAA 774,292
Revenue Bonds, Tender Option Bond Trust 09-8B, 17.472%,
7/01/35 (IF)
5,375 San Francisco City and County Public Utilities Commission, 11/12 at 100.00 AA- 5,782,855
California, Water Revenue Bonds, Series 2002A, 5.000%,
11/01/19 - NPFG 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 AA 1,646,662
1,650 5.000%, 9/15/20 - FGIC Insured 9/13 at 100.00 AA 1,724,562
------------------------------------------------------------------------------------------------------------------------------------
22,130 Total Water and Sewer 23,645,128
------------------------------------------------------------------------------------------------------------------------------------
$ 491,806 Total Investments (cost $487,709,502) - 156.6% 502,099,824
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (9.5)% (30,440,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.9% 6,126,633
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.0)% (5) (157,225,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 320,561,457
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's 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.
(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 31.3%.
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. See Notes to Financial Statements, Footnote 1 - Inverse
Floating Rate Securities for more information.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
Nuveen Investments 57
| Statement of
| Assets & Liabilities February 28, 2010
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
VALUE VALUE 2 PERFORMANCE PLUS OPPORTUNITY
(NCA) (NCB) (NCP) (NCO)
-------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $234,493,424, $46,424,788, $ 241,117,670 $ 50,980,172 $ 279,749,482 $ 166,190,523
$279,425,112 and $165,469,141, respectively)
Cash -- 230,273 -- 332,213
Receivables:
Interest 2,998,719 684,827 4,628,659 2,296,905
Investments sold 2,919,149 -- -- --
Other assets 16,386 432 71,958 25,739
-------------------------------------------------------------------------------------------------------------------------------
Total assets 247,051,924 51,895,704 284,450,099 168,845,380
-------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 885,919 -- 569,447 --
Floating rate obligations
Payables: 4,490,000 -- 7,105,000 4,285,000
Investments purchased -- -- 2,476,289 --
Common share dividends 866,428 180,119 796,942 554,896
Preferred share dividends -- -- 5,048 2,101
Accrued expenses:
Management fees 107,513 25,909 134,775 84,513
Other 103,836 28,281 127,772 75,191
-------------------------------------------------------------------------------------------------------------------------------
Total liabilities 6,453,696 234,309 11,215,273 5,001,701
-------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value N/A N/A 91,175,000 48,775,000
-------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 240,598,228 $51,661,395 $ 182,059,826 $ 115,068,679
===============================================================================================================================
Common shares outstanding 25,253,681 3,287,900 12,937,442 8,143,348
===============================================================================================================================
Net asset value per Common share outstanding (net assets
applicable to Common shares, divided by Common shares
outstanding) $ 9.53 $ 15.71 $ 14.07 $ 14.13
===============================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
-------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 252,537 $ 32,879 $ 129,374 $ 81,433
Paid-in surplus 237,696,722 46,967,862 181,045,841 113,647,072
Undistributed (Over-distribution of) net investment income 834,157 105,270 3,012,286 1,781,031
Accumulated net realized gain (loss) (4,809,434) -- (2,452,045) (1,162,239)
Net unrealized appreciation (depreciation) 6,624,246 4,555,384 324,370 721,382
-------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 240,598,228 $51,661,395 $ 182,059,826 $ 115,068,679
===============================================================================================================================
Authorized shares:
Common 250,000,000 Unlimited 200,000,000 200,000,000
Preferred N/A N/A 1,000,000 1,000,000
===============================================================================================================================
N/A Fund is not authorized to issue Preferred shares.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
58 Nuveen Investments
CALIFORNIA CALIFORNIA CALIFORNIA
INVESTMENT QUALITY SELECT QUALITY QUALITY INCOME
(NQC) (NVC) (NUC)
------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $294,369,608, $499,197,884 and
$487,709,502, respectively) $ 296,522,207 $ 502,649,785 $ 5 02,099,824
Cash -- -- 42,796
Receivables:
Interest 4,919,314 7,576,896 7,663,786
Investments sold -- -- 330,000
Other assets 66,649 121,996 110,280
------------------------------------------------------------------------------------------------------------------------------
Total Assets 301,508,170 510,348,677 510,246,686
------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 302,956 104,705 --
Floating rate obligations 14,230,000 20,585,000 30,440,000
Payables:
Ayables:
Investments purchased -- -- --
Common share dividends 887,455 1,630,571 1,580,101
Preferred share dividends 5,229 5,522 8,476
Accrued expenses:
Management fees 145,571 245,461 240,380
Other 128,817 208,660 191,272
------------------------------------------------------------------------------------------------------------------------------
Total liabilities 15,700,028 22,779,919 32,460,229
------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 94,925,000 158,025,000 157,225,000
------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 190,883,142 $ 329,543,758 $ 320,561,457
==============================================================================================================================
Common shares outstanding 13,580,232 23,088,470 21,980,090
==============================================================================================================================
Net asset value per Common share outstanding (net assets applicable
to Common shares, divided by Common shares outstanding) $ 14.06 $ 14.27 $ 14.58
==============================================================================================================================
Net assets applicable to common shares consist of:
------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 135,802 $ 230,885 $ 219,801
Paid-in surplus 189,868,744 322,447,380 306,654,125
Undistributed (Over-distribution of) net investment income 3,076,239 5,258,667 4,947,440
Accumulated net realized gain (loss) (4,350,242) (1,845,075) (5,650,231)
Net unrealized appreciation (depreciation) 2,152,599 3,451,901 14,390,322
------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to common shares $ 190,883,142 $ 329,543,758 $ 320,561,457
==============================================================================================================================
Authorized shares:
Common 200,000,000 200,000,000 200,000,000
Preferred 1,000,000 1,000,000 1,000,000
==============================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
Nuveen Investments 59
| Statement of
| Operations Year Ended February 28, 2010
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
VALUE VALUE 2 PERFORMANCE PLUS OPPORTUNITY
(NCA) (NCB)* (NCP) (NCO)
-------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 13,340,743 $ 2,440,607 $ 15,356,151 $ 9,808,115
-------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 1,348,034 272,361 1,714,217 1,086,996
Preferred shares - auction fees N/A N/A 152,749 88,318
Preferred shares - dividend disbursing agent fees N/A N/A 30,000 20,000
Shareholders' servicing agent fees and expenses 29,067 132 16,666 10,314
Interest expense on floating rate obligations 32,838 -- 54,058 33,961
Custodian's fees and expenses 45,982 10,843 57,604 38,870
Directors'/Trustees' fees and expenses 6,952 1,228 8,645 5,326
Professional fees 24,101 19,529 35,736 26,131
Shareholders' reports - printing and mailing expenses 58,762 7,277 42,651 31,494
Stock exchange listing fees 9,268 -- 9,219 9,212
Investor relations expense 21,091 4,697 17,303 11,305
Other expenses 12,834 3,416 33,136 30,730
-------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit 1,588,929 319,483 2,171,984 1,392,657
Custodian fee credit (151) (101) (63) (202)
-------------------------------------------------------------------------------------------------------------------------------
Net expenses 1,588,778 319,382 2,171,921 1,392,455
-------------------------------------------------------------------------------------------------------------------------------
Net investment income 11,751,965 2,121,225 13,184,230 8,415,660
-------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments 1,017,603 67,937 357,009 83,280
Change in net unrealized appreciation (depreciation) of
investments 15,395,716 4,555,384 15,923,229 8,361,257
-------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) 16,413,319 4,623,321 16,280,238 8,444,537
-------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income N/A N/A (439,030) (269,084)
From accumulated net realized gains N/A N/A (67,799) --
-------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares from
distributions to Preferred shareholders N/A N/A (506,829) (269,084)
-------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares from operations $ 28,165,284 $ 6,744,546 $ 28,957,639 $ 16,591,113
===============================================================================================================================
* For the period April 28, 2009 (commencement of operations) through
February 28, 2010.
N/A Fund is not authorized to issue Preferred shares.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
60 Nuveen Investments
CALIFORNIA CALIFORNIA CALIFORNIA
INVESTMENT QUALITY SELECT QUALITY QUALITY INCOME
(NQC) (NVC) (NUC)
---------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 16,412,813 $ 28,730,722 $ 28,065,078
---------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 1,838,969 3,105,500 3,060,089
Preferred shares - auction fees 159,031 268,975 269,562
Preferred shares - dividend disbursing agent fees 20,000 30,000 30,000
Shareholders' servicing agent fees and expenses 15,461 20,874 19,383
Interest expense on floating rate obligations 107,617 157,003 185,650
Custodian's fees and expenses 55,609 100,235 90,685
Directors'/Trustees' fees and expenses 9,058 15,492 15,290
Professional fees 35,822 54,378 54,061
Shareholders' reports - printing and mailing expenses 46,441 69,242 68,606
Stock exchange listing fees 9,219 9,219 9,207
Investor relations expense 18,581 28,591 28,370
Other expenses 33,409 43,012 40,643
---------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit 2,349,217 3,902,521 3,871,546
Custodian fee credit (50) (243) (296)
---------------------------------------------------------------------------------------------------------------------------------
Net expenses 2,349,167 3,902,278 3,871,250
---------------------------------------------------------------------------------------------------------------------------------
Net investment income 14,063,646 24,828,444 24,193,828
---------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments (588,474) 458,391 (2,447,353)
Change in net unrealized appreciation (depreciation) of investments 17,487,316 31,713,934 27,271,874
---------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) 16,898,842 32,172,325 24,824,521
---------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (336,724) (559,094) (557,978)
From accumulated net realized gains (266,062) (450,876) (474,141)
---------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares from distributions
to Preferred shareholders (602,786) (1,009,970) (1,032,119)
---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares
from operations $ 30,359,702 $ 55,990,799 $ 47,986,230
=================================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
Nuveen Investments 61
| Statement of
| Changes in Net Assets
CALIFORNIA VALUE (NCA) CALIFORNIA VALUE 2 (NCB)
------------------------------------------- -----------------------------
SIX MONTHS FOR THE PERIOD 4/28/09
YEAR ENDED ENDED YEAR ENDED (COMMENCEMENT OF OPERATIONS)
2/28/10 2/28/09 8/31/08 THROUGH 2/28/10
-----------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 11,751,965 $ 5,875,451 $ 11,743,530 $ 2,121,225
Net realized gain (loss) from:
Investments 1,017,603 (5,670,030) 1,595,437 67,937
Forward swaps -- -- 1,544,426 --
Change in net unrealized appreciation
(depreciation) of:
Investments 15,395,716 (12,226,342) (6,882,534) 4,555,384
Forward swaps -- -- (642,663) --
Distributions to Preferred Shareholders:
From net investment income N/A N/A N/A N/A
From accumulated net realized gains N/A N/A N/A N/A
-----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 28,165,284 (12,020,921) 7,358,196 6,744,546
-----------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (11,515,679) (5,757,840) (11,057,213) (2,015,504)
From accumulated net realized gains -- (3,257,725) (451,828) (68,388)
-----------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable
to Common shares from
distributions to Common
shareholders (11,515,679) (9,015,565) (11,509,041) (2,083,892)
-----------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Proceeds from sale of shares,
net of offering costs -- -- -- 46,900,466
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions -- -- 114,284 --
Repurchased and retired -- -- -- --
-----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
capital share transactions -- -- 114,284 46,900,466
-----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares 16,649,605 (21,036,486) (4,036,561) 51,561,120
Net assets applicable to Common
shares at the beginning of period 223,948,623 244,985,109 249,021,670 100,275
-----------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $240,598,228 $223,948,623 $244,985,109 $ 51,661,395
=======================================================================================================================
Undistributed (Over-distribution of)
net investment income at the end
of period $ 834,157 $ 597,876 $ 488,787 $ 105,270
=======================================================================================================================
N/A Fund is not authorized to issue Preferred shares.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
62 Nuveen Investments
CALIFORNIA PERFORMANCE PLUS (NCP) CALIFORNIA OPPORTUNITY (NCO)
------------------------------------------ -------------------------------------------
SIX MONTHS SIX MONTHS
YEAR ENDED ENDED YEAR ENDED YEAR ENDED ENDED YEAR ENDED
2/28/10 2/28/09 8/31/08 2/28/10 2/28/09 8/31/08
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 13,184,230 $ 6,166,860 $ 12,763,907 $ 8,415,660 $ 4,096,798 $ 8,237,620
Net realized gain (loss) from:
Investments 357,009 (2,747,246) 1,252,724 83,280 (1,281,316) 240,166
Forward swaps -- -- 481,957 -- -- 319,511
Change in net unrealized appreciation
(depreciation) of:
Investments 15,923,229 (16,103,772) (8,379,980) 8,361,257 (9,841,190) (4,808,766)
Forward swaps -- -- (146,052) -- -- 1,358
Distributions to Preferred Shareholders:
From net investment income (439,030) (1,519,501) (3,265,290) (269,084) (1,003,786) (2,153,159)
From accumulated net realized gains (67,799) (329,805) (348,912) -- (140,553) (215,479)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 28,957,639 (14,533,464) 2,358,354 16,591,113 (8,170,047) 1,621,251
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (10,377,364) (4,512,080) (8,917,838) (6,816,511) (2,867,056) (5,776,585)
From accumulated net realized gains -- (1,128,020) (963,355) -- (379,007) (607,718)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable
to Common shares from
distributions to Common
shareholders (10,377,364) (5,640,100) (9,881,193) (6,816,511) (3,246,063) (6,384,303)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Proceeds from sale of shares,
net of offering costs -- -- -- -- -- --
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions -- -- -- -- -- --
Repurchased and retired (143,637) (146,188) -- (187,479) (66,830) --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
capital share transactions (143,637) (146,188) -- (187,479) (66,830) --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares 18,436,638 (20,319,752) (7,522,839) 9,587,123 (11,482,940) (4,763,052)
Net assets applicable to Common
shares at the beginning of period 163,623,188 183,942,940 191,465,779 105,481,556 116,964,496 121,727,548
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $182,059,826 $163,623,188 $183,942,940 $115,068,679 $105,481,556 $116,964,496
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the end
of period $ 3,012,286 $ 644,434 $ 511,590 $ 1,781,031 $ 476,349 $ 233,032
====================================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
Nuveen Investments 63
| Statement of
| Changes in Net Assets (continued)
CALIFORNIA INVESTMENT QUALITY (NQC) CALIFORNIA SELECT QUALITY (NVC)
------------------------------------------ -------------------------------------------
SIX MONTHS SIX MONTHS
YEAR ENDED ENDED YEAR ENDED YEAR ENDED ENDED YEAR ENDED
2/28/10 2/28/09 8/31/08 2/28/10 2/28/09 8/31/08
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 14,063,646 $ 6,621,510 $ 13,563,209 $ 24,828,444 $ 11,604,636 $ 23,467,452
Net realized gain (loss) from:
Investments (588,474) (3,826,201) 1,706,500 458,391 (2,374,000) 2,014,812
Forward swaps -- -- 1,916,826 -- -- 3,564,177
Change in net unrealized appreciation
(depreciation) of:
Investments 17,487,316 (16,483,350) (9,296,655) 31,713,934 (30,264,282) (14,542,844)
Forward swaps -- -- (579,016) -- -- (1,075,627)
Distributions to Preferred Shareholders:
From net investment income (336,724) (1,461,245) (3,599,218) (559,094) (2,594,564) (5,994,043)
From accumulated net realized gains (266,062) (332,447) (59,134) (450,876) (589,101) (410,088)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 30,359,702 (15,481,733) 3,652,512 55,990,799 (24,217,311) 7,023,839
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (11,312,334) (4,929,626) (9,784,557) (20,248,590) (8,396,144) (16,098,392)
From accumulated net realized gains -- (2,524,565) (162,963) -- (4,082,422) (1,112,547)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable
to Common shares from
distributions to Common
shareholders (11,312,334) (7,454,191) (9,947,520) (20,248,590) (12,478,566) (17,210,939)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Proceeds from sale of shares,
net of offering costs -- -- -- -- -- --
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions -- -- -- -- -- --
Repurchased and retired -- -- -- (217,271) (200,163) --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
capital share transactions -- -- -- (217,271) (200,163) --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares 19,047,368 (22,935,924) (6,295,008) 35,524,938 (36,896,040) (10,187,100)
Net assets applicable to Common
shares at the beginning of period 171,835,774 194,771,698 201,066,706 294,018,820 330,914,860 341,101,960
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $190,883,142 $171,835,774 $194,771,698 $329,543,758 $294,018,820 $330,914,860
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the end
of period $ 3,076,239 $ 665,502 $ 435,127 $ 5,258,667 $1,253,610 $ 640,817
====================================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
64 Nuveen Investments
CALIFORNIA QUALITY INCOME (NUC)
-------------------------------------------
SIX MONTHS
YEAR ENDED ENDED YEAR ENDED
2/28/10 2/28/09 8/31/08
------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 24,193,828 $ 11,427,787 $ 22,926,029
Net realized gain (loss) from:
Investments (2,447,353) (3,266,270) 1,242,906
Forward swaps -- -- 3,851,151
Change in net unrealized appreciation (depreciation) of:
Investments 27,271,874 (25,106,877) (9,075,658)
Forward swaps -- -- (1,162,220)
Distributions to Preferred Shareholders:
From net investment income (557,978) (2,539,390) (6,363,248)
From accumulated net realized gains (474,141) (559,269) --
------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares
from operations 47,986,230 (20,044,019) 11,418,960
------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (19,562,281) (8,125,415) (15,821,435)
From accumulated net realized gains -- (3,624,507) --
------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares from
distributions to Common shareholders (19,562,281) (11,749,922) (15,821,435)
------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Proceeds from sale of shares, net of offering costs -- -- --
Net proceeds from shares issued to shareholders due to
reinvestment of distributions -- -- --
Repurchased and retired (235,763) (186,501) --
------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares
from capital share transactions (235,763) (186,501) --
------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares 28,188,186 (31,980,442) (4,402,475)
Net assets applicable to Common shares at the beginning of period 292,373,271 324,353,713 328,756,188
------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares at the end of period $320,561,457 $292,373,271 $324,353,713
==================================================================================================================
Undistributed (Over-distribution of) net investment income at the
end of period $ 4,947,440 $ 910,345 $ 156,979
==================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
Nuveen Investments 65
| Notes to
| Financial Statements
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The funds covered in this report and their corresponding Common share stock
exchange symbols are the Nuveen California Municipal Value Fund, Inc. (NCA),
Nuveen California Municipal Value Fund 2 (NCB), 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"). Common shares of California Value (NCA), California Performance Plus
(NCP), California Opportunity (NCO), California Investment Quality (NQC),
California Select Quality (NVC) and California Quality Income (NUC) are traded
on the New York Stock Exchange ("NYSE") while Common shares of California Value
2 (NCB) are traded on the NYSE Amex. The Funds are registered under the
Investment Company Act of 1940, as amended, as closed-end management investment
companies.
Prior to the commencement of operations, California Value 2 (NCB) had no
operations other than those related to organizational matters, the initial
capital contribution of $100,275 by Nuveen Asset Management (the "Adviser"), a
wholly-owned subsidiary of Nuveen Investments, Inc. ("Nuveen"), and the
recording of the organization costs ($15,000) and its reimbursement by Nuveen
Investments, LLC, also a wholly-owned subsidiary of Nuveen.
Each Fund seeks to provide current income exempt from both regular federal and
California state income taxes by investing primarily in a portfolio of municipal
obligations issued by state and local government authorities within the state of
California or certain U.S. territories.
In June 2009, the Financial Accounting Standards Board (FASB) established the
FASB Accounting Standards Codification(TM) (the "Codification") as the single
source of authoritative accounting principles recognized by the FASB in the
preparation of financial statements in conformity with generally accepted
accounting principles (GAAP). The Codification supersedes existing
non-grandfathered, non-SEC accounting and reporting standards. The Codification
did not change GAAP but rather organized it into a hierarchy where all guidance
within the Codification carries an equal level of authority. The Codification
became effective for financial statements issued for interim and annual periods
ending after September 15, 2009. The Codification did not have a material effect
on the Funds' financial statements.
During the fiscal period ended February 28, 2009, the Board of
Directors/Trustees of the Funds approved a change in the Funds' fiscal and tax
year ends from August 31, to February 28/29.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with US
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/Trustees. Prices
of forward swap contracts are also provided by an independent pricing service
approved by each Fund's Board of Directors/Trustees. When market price quotes
are not readily available (which is usually the case for municipal securities),
the pricing service or, in the absence of a pricing service for a particular
investment or derivative instrument, the Board of Directors/Trustees of the
Fund, or its designee, may establish fair value using a wide variety of market
data including yields or prices of investments of comparable quality, type of
issue, coupon, maturity and rating, market quotes or indications of value from
security dealers, evaluations of anticipated cash flows or collateral, general
market conditions and other information and analysis, including the obligor's
credit characteristics considered relevant. Temporary investments in securities
that have variable rate and demand features qualifying them as short-term
investments are valued at amortized cost, which approximates 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 28, 2010,
California Performance Plus (NCP) had outstanding when-issued/delayed delivery
purchase commitments of $2,476,289. There were no such outstanding purchase
commitments in any of the other Funds.
INVESTMENT INCOME
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
Investment income also includes paydown gains and losses, if any.
66 Nuveen Investments
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 that 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.
For all open tax years and all major taxing jurisdictions, management of the
Funds has concluded that there are no significant uncertain tax positions that
would require recognition in the financial statements. 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). Furthermore,
management of the Funds is 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 at least 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 US
generally accepted accounting principles.
PREFERRED SHARES
California Value (NCA) and California Value 2 (NCB) are not authorized to issue
Preferred shares. The following Funds 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. As of February 28, 2010, 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 -- -- 3,051 -- 1,189
Series T 1,548 -- -- 1,975 --
Series W 551 1,500 746 1,383 2,550
Series TH -- -- -- 2,963 --
Series F 1,548 451 -- -- 2,550
------------------------------------------------------------------------------------
Total 3,647 1,951 3,797 6,321 6,289
====================================================================================
Beginning in February 2008, more shares for sale were submitted in the regularly
scheduled auctions for the Preferred shares issued by the Funds 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" applicable to failed auctions as calculated
in accordance with the pre-established terms of the Preferred shares. As of
February 28, 2010, the aggregate amount of outstanding Preferred shares redeemed
by each Fund is as follows:
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
PERFORMANCE CALIFORNIA INVESTMENT SELECT QUALITY
PLUS OPPORTUNITY QUALITY QUALITY INCOME
(NCP) (NCO) (NQC) (NVC) (NUC)
---------------------------------------------------------------------------------------------------------------------
Preferred shares redeemed, at liquidation value $14,825,000 $19,225,000 $17,075,000 $33,975,000 $27,775,000
=====================================================================================================================
Nuveen Investments 67
| Notes to
| Financial Statements (continued)
Effective May 1, 2009, auction participation fees with respect to auctions that
have failed have been reduced from 25 bps (annualized) to 15 bps (annualized).
All auction participants have signed new agreements incorporating this change.
INVERSE FLOATING RATE SECURITIES
Each Fund is authorized to 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"). 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 "(IF) - Inverse floating rate investment." An investment in a
self-deposited inverse floater is accounted for as a financing transaction. In
such instances, a fixed-rate bond deposited into a special purpose trust is
identified in the Portfolio of Investments as "(UB) - Underlying bond of an
inverse floating rate trust reflected as a financing transaction," 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 recognizes the related interest paid to the holders of the
short-term floating rate certificates as "Interest expense on floating rate
obligations" on the Statement of Operations.
During the fiscal year ended February 28, 2010, each Fund invested in externally
deposited inverse floaters and/or self-deposited inverse floaters.
Each Fund may also enter into shortfall and forbearance agreements (sometimes
referred to as a "recourse trust" or "credit recovery swap") (such agreements
referred to herein as "Recourse Trusts") 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 issued by the
trust plus any shortfalls in interest cash flows. Under these agreements, a
Fund's potential exposure to losses related to or on inverse floaters may
increase beyond the value of a Fund's inverse floater investments as a Fund may
potentially be liable to fulfill all amounts owed to holders of the floating
rate certificates. At period end, any such shortfall is recognized as
"Unrealized depreciation on Recourse Trusts" on the Statement of Assets and
Liabilities.
At February 28, 2010, the Funds were not invested in externally-deposited
Recourse Trusts.
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
CALIFORNIA CALIFORNIA PERFORMANCE CALIFORNIA INVESTMENT SELECT QUALITY
VALUE VALUE 2 PLUS OPPORTUNITY QUALITY QUALITY INCOME
(NCA) (NCB) (NCP) (NCO) (NQC) (NVC) (NUC)
--------------------------------------------------------------------------------------------------------------------------------
Maximum exposure to Recourse Trusts $ -- $ -- $ -- $ -- $ -- $ -- $ --
================================================================================================================================
The average floating rate obligations outstanding and average annual interest
rate and fees related to self-deposited inverse floaters during the fiscal year
ended February 28, 2010, for the following Funds 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 outstanding $4,490,000 $7,209,521 $ 4,444,767 $14,230,000 $20,992,630 $23,931,247
Average annual interest rate and fees 0.73% 0.75% 0.76% 0.76% 0.75% 0.78%
====================================================================================================================================
68 Nuveen Investments
SWAP CONTRACTS
Each Fund is authorized to enter into forward interest rate swap contracts
consistent with their investment objectives and policies to reduce, increase or
otherwise alter its risk profile or to alter its portfolio characteristics (i.e.
duration, yield curve positioning and credit quality).
Each Fund is subject to interest rate risk in the normal course of pursuing its
investment objectives. 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 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.
Forward interest rate swap contracts are valued daily. The net amount recorded
on these transactions for each counterparty is recognized on the Statement of
Assets and Liabilities as "Unrealized appreciation or depreciation on forward
swaps" with the change during the fiscal period recognized on the Statement of
Operations as "Change in net unrealized appreciation (depreciation) of forward
swaps."
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. Net realized
gains and losses during the fiscal period are recognized on the Statement of
Operations as "Net realized gain (loss) from forward swaps." 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. The Funds did not invest in forward interest rate swap transactions
during the fiscal year ended February 28, 2010.
MARKET AND COUNTERPARTY CREDIT RISK
In the normal course of business each Fund may invest in financial instruments
and enter into financial transactions where risk of potential loss exists due to
changes in the market (market risk) or failure of the other party to the
transaction to perform (counterparty credit risk). The potential loss could
exceed the value of the financial assets recorded on the financial statements.
Financial assets, which potentially expose each Fund to counterparty credit
risk, consist principally of cash due from counterparties on forward, option and
swap transactions, when applicable. The extent of each Fund's exposure to
counterparty credit risk in respect to these financial assets approximates their
carrying value as recorded on the Statement of Assets and Liabilities. Futures
contracts, when applicable, expose a Fund to minimal counterparty credit risk as
they are exchange traded and the exchange's clearinghouse, which is counterparty
to all exchange traded futures, guarantees the futures contracts against
default.
Each Fund helps manage counterparty credit risk by entering into agreements only
with counterparties the Adviser believes have the financial resources to honor
their obligations and by having the Adviser monitor the financial stability of
the counterparties. Additionally, counterparties may be required to pledge
collateral daily (based on the daily valuation of the financial asset) on behalf
of each Fund with a value approximately equal to the amount of any unrealized
gain above a pre-determined threshold. Reciprocally, when each Fund has an
unrealized loss, 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 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.
ORGANIZATION AND OFFERING COSTS
Nuveen Investments, LLC has agreed to reimburse all organizational costs
($15,000) and pay all Common share offering costs (other than the sales load)
that exceed $.03 per share of California Value 2 (NCB). California Municipal
Value 2's (NCB) share of Common share offering costs ($98,427) were recorded as
reductions of the proceeds from the sale of Common shares.
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 a Fund overdraws its account at the custodian bank.
Nuveen Investments 69
| Notes to
| Financial Statements (continued)
INDEMNIFICATIONS
Under the Funds' organizational documents, their officers and directors/trustees
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 US generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of increases and decreases in net
assets applicable to Common shares from operations during the reporting period.
Actual results may differ from those estimates.
2. FAIR VALUE MEASUREMENTS
In determining the value of each Fund's investments, various inputs are used.
These inputs are summarized in the three broad levels listed below:
Level 1 - Quoted prices in active markets for identical securities.
Level 2 - Other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3 - Significant unobservable inputs (including management's
assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not an indication of
the risk associated with investing in those securities. The following is a
summary of each Fund's fair value measurements as of February 28, 2010:
CALIFORNIA VALUE (NCA) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
--------------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $241,117,670 $ -- $241,117,670
==================================================================================================
CALIFORNIA VALUE 2 (NCB) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
--------------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $50,980,172 $ -- $50,980,172
==================================================================================================
CALIFORNIA PERFORMANCE PLUS (NCP) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
--------------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $279,749,482 $ -- $279,749,482
==================================================================================================
CALIFORNIA OPPORTUNITY (NCO) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
--------------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $166,190,523 $ -- $166,190,523
==================================================================================================
CALIFORNIA INVESTMENT QUALITY (NQC) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
--------------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $296,522,207 $ -- $296,522,207
==================================================================================================
CALIFORNIA SELECT QUALITY (NVC) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
--------------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $502,649,785 $ -- $502,649,785
==================================================================================================
CALIFORNIA QUALITY INCOME (NUC) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
--------------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $502,099,824 $ -- $502,099,824
==================================================================================================
3. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
During the current fiscal period, the Funds adopted amendments to authoritative
guidance under GAAP on disclosures about derivative instruments and hedging
activities. This guidance is intended to enhance financial statement disclosures
for derivative instruments and hedging activities and enable investors to better
understand: a) how and why a fund uses derivative instruments; b) how derivative
instruments are accounted for; and c) how derivative instruments affect a fund's
financial position, results of operations and cash flows, if any. The Funds
record derivative instruments at fair value, with changes in fair value
recognized on the Statement of Operations, when applicable. Even though the
Funds' investments in derivatives may represent economic hedges, under this
guidance they are considered to be non-hedge transactions for financial
reporting purposes. The Funds did not invest in derivative instruments during
the fiscal year ended February 28, 2010.
70 Nuveen Investments
4. FUND SHARES
COMMON SHARES
Transactions in Common shares were as follows:
CALIFORNIA VALUE (NCA) CALIFORNIA VALUE 2 (NCB)
------------------------------------ -------------------------------------
SIX MONTHS FOR THE PERIOD 4/28/2009
YEAR ENDED ENDED YEAR ENDED (COMMENCEMENT OF OPERATIONS)
2/28/10 2/28/09 8/31/08 THROUGH 2/28/10
------------------------------------------------------------------------------------------------------------------------------------
Common shares:
Sold* -- -- -- 3,280,900
Issued to shareholders due to reinvestment of
distributions -- -- 11,873 --
Repurchased and retired -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Weighted average Common share:
Price per share repurchased and retired -- -- -- --
Discount per share repurchased and retired -- -- -- --
====================================================================================================================================
CALIFORNIA PERFORMANCE PLUS (NCP) CALIFORNIA OPPORTUNITY (NCO)
------------------------------------ -------------------------------------
SIX MONTHS SIX MONTHS
YEAR ENDED ENDED YEAR ENDED YEAR ENDED ENDED YEAR ENDED
2/28/10 2/28/09 8/31/08 2/28/10 2/28/09 8/31/08
------------------------------------------------------------------------------------------------------------------------------------
Common shares:
Issued to shareholders due to reinvestment of
distributions -- -- -- -- -- --
Repurchased and retired (13,800) (14,500) -- (18,300) (6,600) --
------------------------------------------------------------------------------------------------------------------------------------
Weighted average Common share:
Price per share repurchased and retired $10.39 $10.06 -- $10.22 $10.11 --
Discount per share repurchased and retired 18.88% 20.96% -- 19.64% 22.69% --
====================================================================================================================================
CALIFORNIA INVESTMENT QUALITY (NQC) CALIFORNIA SELECT QUALITY (NVC)
------------------------------------ -------------------------------------
SIX MONTHS SIX MONTHS
YEAR ENDED ENDED YEAR ENDED YEAR ENDED ENDED YEAR ENDED
2/28/10 2/28/09 8/31/08 2/28/10 2/28/09 8/31/08
------------------------------------------------------------------------------------------------------------------------------------
Common shares:
Issued to shareholders due to reinvestment of
distributions -- -- -- -- -- --
Repurchased and retired -- -- -- (21,200) (20,200) --
------------------------------------------------------------------------------------------------------------------------------------
Weighted average Common share:
Price per share repurchased and retired -- -- -- $10.23 $9.89 --
Discount per share repurchased and retired -- -- -- 19.12% 22.81% --
====================================================================================================================================
CALIFORNIA QUALITY INCOME (NUC)
-------------------------------------
SIX MONTHS
YEAR ENDED ENDED YEAR ENDED
2/28/10 2/28/09 8/31/08
------------------------------------------------------------------------------------------------------------------------------------
Common shares:
Issued to shareholders due to reinvestment of
distributions -- -- --
Repurchased and retired (22,100) (17,900) --
------------------------------------------------------------------------------------------------------------------------------------
Weighted average Common share:
Price per share repurchased and retired $10.65 $10.40 --
Discount per share repurchased and retired 19.10% 22.38% --
====================================================================================================================================
* California Value 2 (NCB) was the only Fund to sell shares of its Common stock
during the fiscal year ended February 28, 2010.
Nuveen Investments 71
| Notes to
| Financial Statements (continued)
PREFERRED SHARES
California Value (NCA) and California Value 2 (NCB) are not authorized to issue
Preferred shares. Transactions in Preferred shares were as follows:
CALIFORNIA PERFORMANCE PLUS (NCP)
----------------------------------------------------------------
SIX MONTHS
YEAR ENDED ENDED YEAR ENDED
2/28/10 2/28/09 8/31/08
----------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------------------------------------------------------------------------------------------------------------
Preferred shares redeemed:
Series T -- $ -- 149 $3,725,000 103 $2,575,000
Series W -- -- 52 1,300,000 37 925,000
Series F -- -- 149 3,725,000 103 2,575,000
----------------------------------------------------------------------------------------------------------------
Total -- $ -- 350 $8,750,000 243 $6,075,000
================================================================================================================
CALIFORNIA OPPORTUNITY (NCO)
----------------------------------------------------------------
SIX MONTHS
YEAR ENDED ENDED YEAR ENDED
2/28/10 2/28/09 8/31/08
----------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------------------------------------------------------------------------------------------------------------
Preferred shares redeemed:
Series W 405 $10,125,000 295 $7,375,000 -- $ --
Series F -- -- 69 1,725,000 -- --
----------------------------------------------------------------------------------------------------------------
Total 405 $10,125,000 364 $9,100,000 -- $ --
================================================================================================================
CALIFORNIA INVESTMENT QUALITY (NQC)
----------------------------------------------------------------
SIX MONTHS
YEAR ENDED ENDED YEAR ENDED
2/28/10 2/28/09 8/31/08
----------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------------------------------------------------------------------------------------------------------------
Preferred shares redeemed:
Series M -- $ -- -- $ -- 549 $13,725,000
Series W -- -- -- -- 134 3,350,000
----------------------------------------------------------------------------------------------------------------
Total -- $ -- -- $ -- 683 $17,075,000
================================================================================================================
CALIFORNIA SELECT QUALITY (NVC)
----------------------------------------------------------------
SIX MONTHS
YEAR ENDED ENDED YEAR ENDED
2/28/10 2/28/09 8/31/08
----------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------------------------------------------------------------------------------------------------------------
Preferred shares redeemed:
Series T 76 $ 1,900,000 65 $1,625,000 284 $ 7,100,000
Series W 54 1,350,000 44 1,100,000 199 4,975,000
Series TH 115 2,875,000 96 2,400,000 426 10,650,000
----------------------------------------------------------------------------------------------------------------
Total 245 $ 6,125,000 205 $5,125,000 909 $22,725,000
================================================================================================================
72 Nuveen Investments
CALIFORNIA QUALITY INCOME (NUC)
----------------------------------------------------------------------
SIX MONTHS
YEAR ENDED ENDED YEAR ENDED
2/28/10 2/28/09 8/31/08
----------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
--------------------------------------------------------------------------------------------------------
Preferred shares redeemed:
Series M 60 $ 1,500,000 -- $ -- 151 $ 3,775,000
Series W 126 3,150,000 -- -- 324 8,100,000
Series F 126 3,150,000 -- -- 324 8,100,000
--------------------------------------------------------------------------------------------------------
Total 312 $ 7,800,000 -- $ -- 799 $19,975,000
========================================================================================================
5. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities but excluding short-term investments)
during the fiscal year ended February 28, 2010, were as follows:
CALIFORNIA
CALIFORNIA CALIFORNIA PERFORMANCE CALIFORNIA
VALUE VALUE 2 PLUS OPPORTUNITY
(NCA) (NCB)* (NCP) (NCO)
--------------------------------------------------------------------------------------------------------
Purchases $13,513,767 $51,275,274 $12,333,466 $ 7,986,441
Sales and maturities 15,728,786 5,044,474 8,294,946 16,797,646
========================================================================================================
CALIFORNIA CALIFORNIA CALIFORNIA
INVESTMENT SELECT QUALITY
QUALITY QUALITY INCOME
(NQC) (NVC) (NUC)
--------------------------------------------------------------------------------------------------------
Purchases $31,534,291 $47,496,060 $70,028,618
Sales and maturities 30,679,556 47,378,784 54,418,112
========================================================================================================
* For the period April 28, 2009 (commencement of operations) through
February 28, 2010.
6. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to timing differences in recognizing taxable market discount,
timing differences in recognizing certain gains and losses on investment
transactions and the treatment of investments in inverse floating rate
securities reflected as financing transactions, if any. To the extent that
differences arise that are permanent in nature, such amounts are reclassified
within the capital accounts on the Statement of Assets and Liabilities presented
in the annual report, based on their federal tax basis treatment; temporary
differences do not require reclassification. Temporary and permanent differences
do not impact the net asset values of the Funds.
Nuveen Investments 73
| Notes to
| Financial Statements (continued)
At February 28, 2010, the cost of investments was as follows:
CALIFORNIA
CALIFORNIA CALIFORNIA PERFORMANCE CALIFORNIA
VALUE VALUE 2 PLUS OPPORTUNITY
(NCA) (NCB) (NCP) (NCO)
------------------------------------------------------------------------------------------------------------------------
Cost of investments $230,005,575 $46,340,861 $272,157,150 $161,136,251
========================================================================================================================
CALIFORNIA CALIFORNIA CALIFORNIA
INVESTMENT SELECT QUALITY
QUALITY QUALITY INCOME
(NQC) (NVC) (NUC)
------------------------------------------------------------------------------------------------------------------------
Cost of investments $280,000,846 $478,561,201 $457,929,944
========================================================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at February 28, 2010, were as follows:
CALIFORNIA
CALIFORNIA CALIFORNIA PERFORMANCE CALIFORNIA
VALUE VALUE 2 PLUS OPPORTUNITY
(NCA) (NCB) (NCP) (NCO)
------------------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $ 13,688,846 $ 4,639,311 $ 9,988,802 $ 6,912,504
Depreciation (7,056,712) -- (9,498,538) (6,142,854)
------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investments $ 6,632,134 $ 4,639,311 $ 490,264 $ 769,650
========================================================================================================================
CALIFORNIA CALIFORNIA CALIFORNIA
INVESTMENT SELECT QUALITY
QUALITY QUALITY INCOME
(NQC) (NVC) (NUC)
------------------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $11,256,162 $ 21,430,591 $ 24,067,951
Depreciation (8,956,287) (17,920,312) (10,318,774)
------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investments $ 2,299,875 $ 3,510,279 $ 13,749,177
========================================================================================================================
The tax components of undistributed net tax-exempt income, net ordinary income
and net long-term capital gains at February 28, 2010, the Funds' tax year end,
were as follows:
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
CALIFORNIA CALIFORNIA PERFORMANCE CALIFORNIA INVESTMENT SELECT QUALITY
VALUE VALUE 2 PLUS OPPORTUNITY QUALITY QUALITY INCOME
(NCA) (NCB) (NCP) (NCO) (NQC) (NVC) (NUC)
------------------------------------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income * $1,598,728 $ 248,208 $ 3,699,524 $2,355,929 $3,859,851 $6,924,447 $6,621,252
Undistributed net ordinary income ** 23,506 -- 6,231 -- 2,986 6 2,577
Undistributed net long-term capital gains -- -- -- -- -- -- --
====================================================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on February 5, 2010, paid on March 1, 2010.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
74 Nuveen Investments
The tax character of distributions paid during the Funds' tax years ended
February 28, 2010, February 28, 2009, and August 31, 2008 was designated for
purposes of the dividends paid deduction as follows:
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
CALIFORNIA CALIFORNIA PERFORMANCE CALIFORNIA INVESTMENT SELECT QUALITY
VALUE VALUE 2 PLUS OPPORTUNITY QUALITY QUALITY INCOME
YEAR ENDED FEBRUARY 28, 2010 (NCA) (NCB) (NCP) (NCO) (NQC) (NVC) (NUC)
------------------------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt
income *** $11,515,679 $ 1,788,724 $10,993,397 $ 7,096,531 $11,825,392 $20,987,157 $20,299,738
Distributions from net ordinary
income ** -- 68,303 -- -- 36,863 259,402 190,137
Distributions from net long-term
capital gains **** -- -- 67,799 -- 229,199 191,474 284,004
====================================================================================================================================
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
CALIFORNIA PERFORMANCE CALIFORNIA INVESTMENT SELECT QUALITY
VALUE PLUS OPPORTUNITY QUALITY QUALITY INCOME
SIX MONTHS ENDED FEBRUARY 28, 2009 (NCA) (NCP) (NCO) (NQC) (NVC) (NUC)
------------------------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $ 5,718,780 $ 5,707,942 $ 3,739,785 $ 6,056,724 $10,375,312 $10,102,216
Distributions from net ordinary income ** 1,467,618 -- 136,923 395,027 2,686,610 1,677,624
Distributions from net long-term capital gains 1,791,287 1,457,825 382,913 2,461,985 1,984,913 2,506,152
====================================================================================================================================
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
CALIFORNIA PERFORMANCE CALIFORNIA INVESTMENT SELECT QUALITY
VALUE PLUS OPPORTUNITY QUALITY QUALITY INCOME
YEAR ENDED AUGUST 31, 2008 (NCA) (NCP) (NCO) (NQC) (NVC) (NUC)
------------------------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $11,056,779 $12,093,815 $ 7,788,970 $13,039,199 $22,149,317 $22,202,204
Distributions from net ordinary income ** -- 120,294 156,931 564,093 -- 44,856
Distributions from net long-term capital gains 451,828 1,312,267 823,197 -- 1,522,635 --
====================================================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
*** The Fund hereby designate these amounts paid during the fiscal year ended
February 28, 2010, as Exempt Interest Dividends.
**** The Funds designated as a long-term capital gain dividend, pursuant to the
Internal Revenue Code Section 852(b)(3), the amount necessary to reduce
earnings and profits of the Funds related to net capital gain to zero for
the tax year ended February 28, 2010.
At February 28, 2010, the Funds' tax year end, the following Funds had unused
capital loss carryforwards available for federal income tax purposes to be
applied against future capital gains, if any. If not applied, the carryforwards
will expire as follows:
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
CALIFORNIA PERFORMANCE CALIFORNIA INVESTMENT SELECT QUALITY
VALUE PLUS OPPORTUNITY QUALITY QUALITY INCOME
(NCA) (NCP) (NCO) (NQC) (NVC) (NUC)
------------------------------------------------------------------------------------------------------------------------------------
Expiration:
February 28, 2017 $ 4,394,352 $ 399,209 $ 442,824 $ 518,345 $ 1,739,736 $ 1,333,051
February 28, 2018 251,409 1,988,593 729,729 3,677,102 -- 3,227,558
------------------------------------------------------------------------------------------------------------------------------------
Total $ 4,645,761 $ 2,387,802 $ 1,172,553 $ 4,195,447 $ 1,739,736 $ 4,560,609
====================================================================================================================================
The following Funds have elected to defer net realized losses from investments
incurred from November 1, 2009 through February 28, 2010, the Funds' tax year
end, ("post-October losses") in accordance with federal income tax regulations.
Post-October losses are treated as having arisen on the first day of the
following fiscal year:
CALIFORNIA CALIFORNIA
INVESTMENT QUALITY
QUALITY INCOME
(NQC) (NUC)
------------------------------------------------------------------------------------------------------------------------------------
Post-October capital losses $92,088 $357,984
====================================================================================================================================
Nuveen Investments 75
| Notes to
| Financial Statements (continued)
7. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Each Fund's management fee is separated into two components - a fund-level fee,
based on the amount of assets within each individual Fund, and a complex-level
fee, based on the aggregate amount of all fund assets managed by the Adviser,
and for California Value (NCA) a gross interest income component. This pricing
structure enables each Fund's shareholders to benefit from growth in the assets
within their respective 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.
The annual fund-level fee for each Fund (excluding California Value (NCA)),
payable monthly, is calculated according to the following schedule:
CALIFORNIA PERFORMANCE PLUS (NCP)
CALIFORNIA OPPORTUNITY (NCO)
CALIFORNIA INVESTMENT QUALITY (NQC)
CALIFORNIA SELECT QUALITY (NVC)
CALIFORNIA QUALITY INCOME (NUC)
AVERAGE DAILY NET ASSETS* 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
=================================================================================================
CALIFORNIA VALUE 2 (NCB)
AVERAGE DAILY MANAGED ASSETS* FUND-LEVEL FEE RATE
-------------------------------------------------------------------------------------------------
For the first $125 million 0.4000%
For the next $125 million 0.3875
For the next $250 million 0.3750
For the next $500 million 0.3625
For the next $1 billion 0.3500
For Managed Assets over $2 billion 0.3375
=================================================================================================
The annual complex-level fee for each Fund, payable monthly, is calculated
according to the following schedule:
COMPLEX-LEVEL ASSET BREAKPOINT LEVEL* 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
=================================================================================================
* The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate daily managed assets of all Nuveen
funds, with such daily managed assets defined separately for each fund in
its management agreement, but excluding assets attributable to investments
in other Nuveen funds. For the complex-level and fund-level fees, daily
managed assets include assets managed by the Adviser that are attributable
to financial leverage. For these purposes, financial leverage includes the
funds use of preferred stock and borrowings and investments in the
residual interest certificates (also called inverse floating rate
securities) in tender option bond (TOB) trusts, including the portion of
assets held by a TOB trust that has been effectively financed by the
trust's issuance of floating rate securities, subject to an agreement by
the Adviser to limit the amount of such assets for determining managed
assets in certain circumstances. As of February 28, 2010, the
complex-level fee rate was .1874%.
76 Nuveen Investments
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/trustees 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/Trustees has adopted a deferred compensation plan for independent
directors/trustees that enables directors/trustees 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.
8. NEW ACCOUNTING PRONOUNCEMENTS
ACCOUNTING FOR TRANSFERS OF FINANCIAL ASSETS
During June 2009, FASB issued changes to the authoritative guidance under GAAP
on accounting for transfers of financial assets. The objective of this guidance
is to improve the relevance, representational faithfulness, and comparability of
the information that a reporting entity provides in its financial statements
about a transfer of financial assets; the effects of a transfer on its financial
position, financial performance, and cash flows; and transferor's continuing
involvement, if any, in transferred financial assets.
This guidance is effective as of the beginning of each reporting entity's first
annual reporting period that begins after November 15, 2009, for interim periods
within that first annual reporting period and for interim and annual reporting
periods thereafter. Earlier application is prohibited. The recognition and
measurement provisions of this guidance must be applied to transfers occurring
on or after the effective date. Additionally, the disclosure provisions of this
guidance should be applied to transfers that occurred both before and after the
effective date of this guidance. At this time, management is evaluating the
implications of this guidance and the impact it will have on the financial
statement amounts and disclosures, if any.
FAIR VALUE MEASUREMENTS
On January 21, 2010, FASB issued changes to the authoritative guidance under
GAAP for fair value measurements. The objective of this guidance is to provide
guidance on how investment assets and liabilities are to be valued and
disclosed. Specifically, the amendment requires reporting entities to disclose
i) the input and valuation techniques used to measure fair value for both
recurring and nonrecurring fair value measurements, for both Level 2 and Level 3
positions, ii) transfers between all levels (including Level 1 and Level 2) on a
gross basis (i.e., transfers out must be disclosed separately from transfers in)
as well as the reason(s) for the transfer and iii) purchases, sales, issuances
and settlements in the Level 3 rollforward must be shown on a gross basis rather
than as one net number. The effective date of the amendment is for interim and
annual periods beginning after December 15, 2009, however, the requirement to
provide the Level 3 activity for purchases, sales, issuances and settlements on
a gross basis will be effective for interim and annual periods beginning after
December 15, 2010. At this time, management is evaluating the implications of
this guidance and the impact it will have to the financial statement amounts and
footnote disclosures, if any.
9. SUBSEQUENT EVENTS
DISTRIBUTIONS TO COMMON SHAREHOLDERS
The Funds declared Common share dividend distributions from their tax-exempt net
investment income, which were paid on April 1, 2010, to shareholders of record
on March 15, 2010, as follows:
CALIFORNIA
CALIFORNIA CALIFORNIA PERFORMANCE CALIFORNIA
VALUE VALUE 2 PLUS OPPORTUNITY
(NCA) (NCB) (NCP) (NCO)
---------------------------------------------------------------------------------------------
Dividend per share $.0380 $.0690 $.0750 $.0750
=============================================================================================
CALIFORNIA CALIFORNIA CALIFORNIA
INVESTMENT SELECT QUALITY
QUALITY QUALITY INCOME
(NQC) (NVC) (NUC)
---------------------------------------------------------------------------------------------
Dividend per share $.0750 $.0790 $.0800
=============================================================================================
PREFERRED SHARES NOTICES FOR REDEMPTION
On March 1, 2010 and March 19, 2010, California Performance Plus (NCP) noticed
for redemption $7.8 million and $3.025 million, respectively, of its outstanding
Preferred shares, at liquidation value. The Fund used tender option bonds (TOBs)
to finance the partial redemption of its Preferred shares.
On March 31, 2010, California Opportunity (NCO) noticed for redemption its
remaining $48.775 million outstanding Preferred shares, at liquidation value,
using proceeds from the issuance of Variable Rate Demand Preferred shares
("VRDP") for this redemption.
VARIABLE RATE DEMAND PREFERRED SHARES
On March 30, 2010, California Opportunity (NCO) issued $49.8 million of VRDP.
Refer to the Portfolio Manager's Comments for further information on VRDP.
Nuveen Investments 77
| Financial
| Highlights
Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS
-----------------------------------------------------------------
DISTRIBUTIONS DISTRIBUTIONS
FROM NET FROM
BEGINNING INVESTMENT CAPITAL
COMMON NET INCOME TO GAINS TO
SHARE NET REALIZED/ PREFERRED PREFERRED
NET ASSET INVESTMENT UNREALIZED SHARE- SHARE-
VALUE INCOME GAIN (LOSS) HOLDERS+ HOLDERS+ TOTAL
--------------------------------------------------------------------------------------------------------
CALIFORNIA VALUE (NCA)
--------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010 $ 8.87 $.47 $ .65 N/A N/A $1.12
2009(c) 9.70 .23 (.70) N/A N/A (.47)
Year Ended 8/31:
2008 9.87 .47 (.18) N/A N/A .29
2007 10.14 .45 (.23) N/A N/A .22
2006 10.33 .46 (.13) N/A N/A .33
2005 10.20 .47 .21 N/A N/A .68
CALIFORNIA VALUE 2 (NCB)
--------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(d) 14.33 .65 1.40 N/A N/A 2.05
========================================================================================================
LESS DISTRIBUTIONS
------------------------------
NET DISCOUNT
INVESTMENT CAPITAL FROM ENDING
INCOME TO GAINS TO COMMON COMMON
COMMON COMMON SHARES SHARE ENDING
SHARE- SHARE- REPURCHASED OFFERING NET ASSET MARKET
HOLDERS HOLDERS TOTAL AND RETIRED COSTS VALUE VALUE
--------------------------------------------------------------------------------------------------------
CALIFORNIA VALUE (NCA)
--------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010 $(.46) $ -- $(.46) $ -- $-- $ 9.53 $ 9.00
2009(c) (.23) (.13) (.36) -- -- 8.87 8.39
Year Ended 8/31:
2008 (.44) (.02) (.46) -- -- 9.70 9.63
2007 (.46) (.03) (.49) -- -- 9.87 9.65
2006 (.46) (.06) (.52) -- -- 10.14 9.67
2005 (.47) (.08) (.55) -- -- 10.33 9.92
CALIFORNIA VALUE 2 (NCB)
--------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(d) (.62) (.02) (.64) -- (.03) 15.71 14.61
========================================================================================================
PREFERRED SHARES AT END OF PERIOD
--------------------------------------
AGGREGATE LIQUIDATION
AMOUNT AND MARKET ASSET
OUTSTANDING VALUE COVERAGE
(000) PER SHARE PER SHARE
---------------------------------------------------------------
CALIFORNIA VALUE (NCA)
---------------------------------------------------------------
Year Ended 2/28:
2010 N/A N/A N/A
2009(c) N/A N/A N/A
Year Ended 8/31:
2008 N/A N/A N/A
2007 N/A N/A N/A
2006 N/A N/A N/A
2005 N/A N/A N/A
CALIFORNIA VALUE 2 (NCB)
---------------------------------------------------------------
Year Ended 2/28:
2010(d) N/A N/A N/A
===============================================================
78 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA
------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
TOTAL RETURNS APPLICABLE TO COMMON SHARES++
--------------------- --------------------------------------
BASED ENDING
ON NET
BASED COMMON ASSETS
ON SHARE NET APPLICABLE EXPENSES EXPENSES NET PORTFOLIO
MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT TURNOVER
VALUE(a) VALUE(a) SHARES (000) INTEREST(b) INTEREST INCOME RATE
-----------------------------------------------------------------------------------------------------------------------
CALIFORNIA VALUE (NCA)
-----------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010 12.83% 12.85% $240,598 .68% .67% 5.03% 6%
2009(c) (9.08) (4.73) 223,949 .72* .70* 5.30* 12
Year Ended 8/31:
2008 4.70 2.94 244,985 .69 .65 4.71 22
2007 4.74 2.11 249,022 .65 .62 4.49 8
2006 2.85 3.34 255,868 .64 .64 4.51 20
2005 13.33 6.82 260,782 .63 .63 4.54 4
CALIFORNIA VALUE 2 (NCB)
-----------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(d) 1.80 14.34 51,661 .77* .77* 5.13* 10
=======================================================================================================================
* Annualized.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; Net Investment Income ratios reflect income earned and
expenses incurred on assets attributable to Preferred shares.
N/A Fund is not authorized to issue Preferred shares.
(a) Total Return Based 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 may take 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 Based 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.
(b) The expense ratios reflect, among other things, the interest expense
deemed to have been paid by the Fund on the floating rate certificates
issued by the special purpose trusts for the self-deposited inverse
floaters held by the Fund, as described in Footnote 1--Inverse Floating
Rate Securities.
(c) For the six months ended February 28, 2009.
(d) For the period April 28, 2009 (commencement of operations) through
February 28, 2010.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
Nuveen Investments 79
| Financial
| Highlights (continued)
Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS
------------------------------------------------------------------
DISTRIBUTIONS DISTRIBUTIONS
FROM NET FROM
BEGINNING INVESTMENT CAPITAL
COMMON NET INCOME TO GAINS TO
SHARE NET REALIZED/ PREFERRED PREFERRED
NET ASSET INVESTMENT UNREALIZED SHARE- SHARE-
VALUE INCOME GAIN (LOSS) HOLDERS+ HOLDERS+ TOTAL
------------------------------------------------------------------------------------------------------------------
CALIFORNIA PERFORMANCE PLUS (NCP)
------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010 $ 12.63 $ 1.02 $ 1.26 $ (.03) $ (.01) $ 2.24
2009(c) 14.19 .48 (1.45) (.12) (.03) (1.12)
Year Ended 8/31:
2008 14.77 .98 (.52) (.25) (.03) .18
2007 15.45 .96 (.60) (.26) (.02) .08
2006 15.79 .96 (.29) (.23) -- .44
2005 15.53 .97 .49 (.12) (.01) 1.33
CALIFORNIA OPPORTUNITY (NCO)
------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010 12.92 1.03 1.05 (.03) -- 2.05
2009(c) 14.32 .50 (1.36) (.12) (.02) (1.00)
Year Ended 8/31:
2008 14.90 1.01 (.52) (.26) (.03) .20
2007 15.67 .99 (.68) (.28) -- .03
2006 16.14 1.00 (.41) (.22) -- .37
2005 15.67 1.02 .50 (.12) -- 1.40
==================================================================================================================
LESS DISTRIBUTIONS
------------------------------
NET DISCOUNT
INVESTMENT CAPITAL FROM ENDING
INCOME TO GAINS TO COMMON COMMON
COMMON COMMON SHARES SHARE ENDING
SHARE- SHARE- REPURCHASED OFFERING NET ASSET MARKET
HOLDERS HOLDERS TOTAL AND RETIRED COSTS VALUE VALUE
------------------------------------------------------------------------------------------------------------------
CALIFORNIA PERFORMANCE PLUS (NCP)
------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010 $(.80) $ -- $(.80) $ --** $-- $14.07 $12.59
2009(c) (.35) (.09) (.44) --** -- 12.63 10.87
Year Ended 8/31:
2008 (.69) (.07) (.76) -- -- 14.19 12.70
2007 (.71) (.05) (.76) -- -- 14.77 14.07
2006 (.78) -- (.78) -- -- 15.45 14.36
2005 (.90) (.17) (1.07) -- -- 15.79 14.52
CALIFORNIA OPPORTUNITY (NCO)
------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010 (.84) -- (.84) --** -- 14.13 12.94
2009(c) (.35) (.05) (.40) --** -- 12.92 10.77
Year Ended 8/31:
2008 (.71) (.07) (.78) -- -- 14.32 12.85
2007 (.80) -- (.80) -- -- 14.90 14.36
2006 (.84) -- (.84) -- -- 15.67 15.36
2005 (.93) -- (.93) -- -- 16.14 15.61
==================================================================================================================
PREFERRED SHARES AT END OF PERIOD
--------------------------------------
AGGREGATE LIQUIDATION
AMOUNT AND MARKET ASSET
OUTSTANDING VALUE COVERAGE
(000) PER SHARE PER SHARE
--------------------------------------------------------------------------
CALIFORNIA PERFORMANCE PLUS (NCP)
--------------------------------------------------------------------------
Year Ended 2/28:
2010 $ 91,175 $25,000 $74,920
2009(c) 91,175 25,000 69,865
Year Ended 8/31:
2008 105,075 25,000 68,765
2007 106,000 25,000 70,157
2006 106,000 25,000 72,255
2005 106,000 25,000 73,276
CALIFORNIA OPPORTUNITY (NCO)
--------------------------------------------------------------------------
Year Ended 2/28:
2010 48,775 25,000 83,979
2009(c) 58,900 25,000 69,771
Year Ended 8/31:
2008 68,000 25,000 68,002
2007 68,000 25,000 69,753
2006 68,000 25,000 71,982
2005 68,000 25,000 73,377
==========================================================================
80 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA
----------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
TOTAL RETURNS APPLICABLE TO COMMON SHARES++
----------------------- -------------------------------------------------
BASED ENDING
ON NET
BASED COMMON ASSETS
ON SHARE NET APPLICABLE EXPENSES EXPENSES NET PORTFOLIO
MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT TURNOVER
VALUE(a) VALUE(a) SHARES (000) INTEREST(b) INTEREST INCOME RATE
--------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA PERFORMANCE PLUS (NCP)
--------------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010 23.76% 18.20% $182,060 1.25% 1.22% 7.58% 3%
2009(c) (10.58) (7.75) 163,623 1.40* 1.34* 7.72* 6
Year Ended 8/31:
2008 (4.41) 1.23 183,943 1.33 1.26 6.73 11
2007 3.21 .49 191,466 1.30 1.22 6.28 18
2006 4.42 2.97 200,359 1.23 1.23 6.28 11
2005 9.66 8.89 204,692 1.23 1.23 6.22 5
CALIFORNIA OPPORTUNITY (NCO)
--------------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010 28.54 16.25 115,069 1.26 1.22 7.59 5
2009(c) (12.83) (6.85) 105,482 1.48* 1.44* 8.00* 4
Year Ended 8/31:
2008 (5.15) 1.35 116,964 1.36 1.28 6.84 8
2007 (1.62) .07 121,728 1.31 1.26 6.37 10
2006 4.02 2.47 127,792 1.26 1.26 6.43 18
2005 15.00 9.19 131,587 1.25 1.25 6.42 7
================================================================================================================================
* Annualized.
** 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; Net Investment Income ratios reflect income earned and
expenses incurred on assets attributable to Preferred shares.
(a) Total Return Based 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 may take 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 Based 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.
(b) The expense ratios reflect, among other things, the interest expense
deemed to have been paid by the Fund on the floating rate certificates
issued by the special purpose trusts for the self-deposited inverse
floaters held by the Fund, as described in Footnote 1--Inverse Floating
Rate Securities.
(c) For the six months ended February 28, 2009.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
Nuveen Investments 81
| Financial
| Highlights (continued)
Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS LESS DISTRIBUTIONS
-------------------------------------------------------------- ------------------------------
DISTRIBUTIONS DISTRIBUTIONS
FROM NET FROM NET
BEGINNING INVESTMENT CAPITAL INVESTMENT CAPITAL
COMMON NET INCOME TO GAINS TO INCOME TO GAINS TO
SHARE NET REALIZED/ PREFERRED PREFERRED COMMON COMMON
NET ASSET INVESTMENT UNREALIZED SHARE- SHARE- SHARE- SHARE-
VALUE INCOME GAIN (LOSS) HOLDERS+ HOLDERS+ TOTAL HOLDERS HOLDERS TOTAL
----------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA INVESTMENT QUALITY (NQC)
----------------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010 $12.65 $1.04 $ 1.24 $ (.02) $ (.02) $ 2.24 $(.83) $ -- $(.83)
2009(c) 14.34 .49 (1.50) (.11) (.02) (1.14) (.36) (.19) (.55)
Year Ended 8/31:
2008 14.81 1.00 (.47) (.27) --** .26 (.72) (.01) (.73)
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)
CALIFORNIA SELECT QUALITY (NVC)
----------------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010 12.72 1.07 1.40 (.02) (.02) 2.43 (.88) -- (.88)
2009(c) 14.31 .50 (1.41) (.11) (.03) (1.05) (.36) (.18) (.54)
Year Ended 8/31:
2008 14.75 1.01 (.42) (.26) (.02) .31 (.70) (.05) (.75)
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)
==================================================================================================================================
DISCOUNT PREFERRED SHARES AT END OF PERIOD
FROM ENDING -------------------------------------
COMMON COMMON AGGREGATE LIQUIDATION
SHARES SHARE ENDING AMOUNT AND MARKET ASSET
REPURCHASED OFFERING NET ASSET MARKET OUTSTANDING VALUE COVERAGE
AND RETIRED COSTS VALUE VALUE (000) PER SHARE PER SHARE
--------------------------------------------------------------------------------------------------------------
CALIFORNIA INVESTMENT QUALITY (NQC)
--------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010 $-- $-- $14.06 $12.84 $ 94,925 $25,000 $75,272
2009(c) -- -- 12.65 11.09 94,925 25,000 70,256
Year Ended 8/31:
2008 -- -- 14.34 13.08 108,650 25,000 69,816
2007 -- -- 14.81 13.74 112,000 25,000 69,881
2006 -- -- 15.48 14.63 112,000 25,000 71,929
2005 -- -- 15.86 15.10 112,000 25,000 73,091
CALIFORNIA SELECT QUALITY (NVC)
--------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010 --** -- 14.27 13.61 158,025 25,000 77,135
2009(c) --** -- 12.72 10.78 164,150 25,000 69,779
Year Ended 8/31:
2008 -- -- 14.31 12.88 176,375 25,000 71,905
2007 -- -- 14.75 13.97 192,000 25,000 69,414
2006 -- -- 15.49 15.25 192,000 25,000 71,632
2005 -- -- 15.98 15.69 192,000 25,000 73,058
==============================================================================================================
82 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA
----------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
TOTAL RETURNS APPLICABLE TO COMMON SHARES++
------------------- ------------------------------------
BASED ENDING
ON NET
BASED COMMON ASSETS
ON SHARE NET APPLICABLE EXPENSES EXPENSES NET PORTFOLIO
MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT TURNOVER
VALUE(a) VALUE(a) SHARES (000) INTEREST(b) INTEREST INCOME RATE
----------------------------------------------------------------------------------------------------------------
CALIFORNIA INVESTMENT QUALITY (NQC)
----------------------------------------------------------------------------------------------------------------
Year Ended 2/28: 23.89% 18.21% $190,883 1.29% 1.23% 7.72% 11%
2010 (10.59) (7.70) 171,836 1.47* 1.30* 7.87* 6
2009(c)
Year Ended 8/31: .53 1.78 194,772 1.39 1.24 6.77 15
2008 (1.03) .57 201,067 1.34 1.22 6.32 12
2007 2.73 3.21 210,242 1.22 1.22 6.28 11
2006 9.33 8.18 215,446 1.21 1.21 6.24 5
2005
CALIFORNIA SELECT QUALITY (NVC)
----------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010 35.21 19.60 329,544 1.24 1.19 7.91 10
2009(c) (11.80) 7.09 294,019 1.39* 1.28* 8.08* 0
Year Ended 8/31:
2008 (2.52) 2.07 330,915 1.32 1.22 6.90 13
2007 (3.40) .29 341,102 1.28 1.19 6.36 16
2006 3.63 3.21 358,131 1.20 1.20 6.38 16
2005 13.70 9.33 369,087 1.19 1.19 6.44 8
================================================================================================================
* Annualized.
** 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; Net Investment Income ratios reflect income earned and
expenses incurred on assets attributable to Preferred shares.
(a) Total Return Based 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 may take 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 Based 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.
(b) The expense ratios reflect, among other things, the interest expense
deemed to have been paid by the Fund on the floating rate certificates
issued by the special purpose trusts for the self-deposited inverse
floaters held by the Fund, as described in Footnote 1--Inverse Floating
Rate Securities.
(c) For the six months ended February 28, 2009.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
Nuveen Investments 83
| Financial
| Highlights (continued)
Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS
----------------------------------------------------------------
DISTRIBUTIONS DISTRIBUTIONS
FROM NET FROM
BEGINNING INVESTMENT CAPITAL
COMMON NET INCOME TO GAINS TO
SHARE NET REALIZED/ PREFERRED PREFERRED
NET ASSET INVESTMENT UNREALIZED SHARE- SHARE-
VALUE INCOME GAIN (LOSS) HOLDERS+ HOLDERS+ TOTAL
---------------------------------------------------------------------------------------------------
CALIFORNIA QUALITY INCOME (NUC)
---------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010 $13.29 $1.10 $ 1.13 $(.03) $(.02) $2.18
2009(c) 14.73 .52 (1.28) (.12) (.03) (.91)
Year Ended 8/31:
2008 14.93 1.04 (.23) (.29) -- .52
2007 15.60 1.01 (.59) (.28) (.01) .13
2006 16.03 1.02 (.35) (.23) --** .44
2005 15.49 1.04 .69 (.13) (.01) 1.59
===================================================================================================
LESS DISTRIBUTIONS
------------------------------
NET DISCOUNT
INVESTMENT CAPITAL FROM ENDING
INCOME TO GAINS TO COMMON COMMON
COMMON COMMON SHARES SHARE ENDING
SHARE- SHARE- REPURCHASED OFFERING NET ASSET MARKET
HOLDERS HOLDERS TOTAL AND RETIRED COSTS VALUE VALUE
---------------------------------------------------------------------------------------------------
CALIFORNIA QUALITY INCOME (NUC)
---------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010 $(.89) $ -- $ (.89) $--** $-- $14.58 $13.64
2009(c) (.37) (.16) (.53) --** -- 13.29 11.21
Year Ended 8/31:
2008 (.72) -- (.72) -- -- 14.73 13.08
2007 (.77) (.03) (.80) -- -- 14.93 14.08
2006 (.84) (.03) (.87) -- -- 15.60 15.28
2005 (.97) (.08) (1.05) -- -- 16.03 15.73
===================================================================================================
PREFERRED SHARES AT END OF PERIOD
-------------------------------------
AGGREGATE LIQUIDATION
AMOUNT AND MARKET ASSET
OUTSTANDING VALUE COVERAGE
(000) PER SHARE PER SHARE
------------------------------------------------------------
CALIFORNIA QUALITY INCOME (NUC)
------------------------------------------------------------
Year Ended 2/28:
2010 $157,225 $25,000 $75,972
2009(c) 165,025 25,000 69,292
Year Ended 8/31:
2008 176,900 25,000 70,839
2007 185,000 25,000 69,427
2006 185,000 25,000 71,364
2005 185,000 25,000 72,669
============================================================
84 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA
--------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
TOTAL RETURNS APPLICABLE TO COMMON SHARES++
------------------- -----------------------------------------------
BASED ENDING
ON NET
BASED COMMON ASSETS
ON SHARE NET APPLICABLE EXPENSES EXPENSES NET PORTFOLIO
MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT TURNOVER
VALUE(a) VALUE(a) SHARES (000) INTEREST(b) INTEREST INCOME RATE
------------------------------------------------------------------------------------------------------------
CALIFORNIA QUALITY INCOME (NUC)
------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010 30.22% 16.84% $320,561 1.26% 1.20% 7.85% 11%
2009(c) (9.94) (5.94) 292,373 1.37* 1.27* 8.00* 6
Year Ended 8/31:
2008 (2.12) 3.51 324,354 1.33 1.23 6.93 10
2007 (2.92) .74 328,756 1.28 1.20 6.51 16
2006 2.90 2.96 343,096 1.21 1.21 6.54 12
2005 12.30 10.57 352,752 1.20 1.20 6.62 6
============================================================================================================
* Annualized.
** 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; Net Investment Income ratios reflect income earned and
expenses incurred on assets attributable to Preferred shares.
(a) Total Return Based 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 may take 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 Based 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.
(b) The expense ratios reflect, among other things, the interest expense
deemed to have been paid by the Fund on the floating rate certificates
issued by the special purpose trusts for the self-deposited inverse
floaters held by the Fund, as described in Footnote 1--Inverse Floating
Rate Securities.
(c) For the six months ended February 28, 2009.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
Nuveen Investments 85
Board Members & Officers
The management of the Funds, including general supervision of the duties
performed for the Funds by the Adviser, is the responsibility of the Board
Members of the Funds. The number of board members of the Fund is currently
set at nine. None of the board members who are not "interested" persons of
the Funds (referred to herein as "independent board members") has ever
been a director or employee of, or consultant to, Nuveen or its
affiliates. The names and business addresses of the board members and
officers of the Funds, their principal occupations and other affiliations
during the past five years, the number of portfolios each oversees and
other directorships they hold are set forth below.
------------------------------------------------------------------------------------------------------------------------------------
NUMBER PRINCIPAL
YEAR FIRST OF PORTFOLIOS OCCUPATION(s)
NAME, ELECTED OR IN FUND COMPLEX INCLUDING OTHER
BIRTHDATE POSITION(s) HELD APPOINTED OVERSEEN BY DIRECTORSHIPS
& ADDRESS WITH THE FUNDS AND TERM(1) BOARD MEMBER DURING PAST 5 YEARS
------------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT BOARD MEMBERS:
o ROBERT P. BREMNER Private Investor and Management Consultant;
8/22/40 Chairman of Treasurer and Director, Humanities Council of
333 W. Wacker Drive the Board 1996 199 Washington, D.C.
Chicago, IL 60606 and Board Member
o JACK B. EVANS President, The Hall-Perrine Foundation, a
10/22/48 private philanthropic corporation (since 1996);
333 W. Wacker Drive Board Member 1999 199 Director and Chairman, United Fire Group, a
Chicago, IL 60606| publicly held company; President Pro Tem of the
Board of Regents for the State of Iowa
University System; Director, Gazette Companies;
Life Trustee of Coe College and the Iowa
College Foundation; formerly, Director, Alliant
Energy; formerly, Director, Federal Reserve
Bank of Chicago; formerly, President and Chief
Operating Officer, SCI Financial Group, Inc., a
regional financial services firm.
o WILLIAM C. HUNTER Dean, Tippie College of Business, University of
3/6/48 Iowa (since 2006); Director (since 2004) of
333 W. Wacker Drive Board Member 2004 199 Xerox Corporation; Director (since 2005), Beta
Chicago, IL 60606 Gamma Sigma International Honor Society;
formerly, Dean and Distinguished Professor of
Finance, School of Business at the University
of Connecticut (2003-2006); previously, Senior
Vice President and Director of Research at the
Federal Reserve Bank of Chicago (1995-2003);
Director, SS&C Technologies, Inc. (May
2005-October 2005); formerly, Director
(1997-2007), Credit Research Center at
Georgetown University.
o DAVID J. KUNDERT Director, Northwestern Mutual Wealth Management
10/28/42 Company; retired (since 2004) as Chairman,
333 W. Wacker Drive Board Member 2005 199 JPMorgan Fleming Asset Management, President
Chicago, IL 60606 and CEO, Banc One Investment Advisors
Corporation, and President, One Group Mutual
Funds; prior thereto, Executive Vice President,
Banc One Corporation and Chairman and CEO, Banc
One Investment Management Group; Member, Board
of Regents, Luther College; member of the
Wisconsin Bar Association; member of Board of
Directors, Friends of Boerner Botanical
Gardens; member of Board of Directors and
member of Investment Committee, Greater
Milwaukee Foundation.
o WILLIAM J. SCHNEIDER Chairman of Miller-Valentine Partners Ltd., a
9/24/44 real estate investment company; formerly,
333 W. Wacker Drive Board Member 1997 199 Senior Partner and Chief Operating Officer
Chicago, IL 60606 (retired, 2004) of Miller-Valentine Group;
member, University of Dayton Business School
Advisory Council; member, Dayton Philharmonic
Orchestra Association; formerly, member,
Business Advisory Council, Cleveland Federal
Reserve Bank; formerly, Director, Dayton
Development Coalition.
86 Nuveen Investments
------------------------------------------------------------------------------------------------------------------------------------
NUMBER PRINCIPAL
YEAR FIRST OF PORTFOLIOS OCCUPATION(s)
NAME, ELECTED OR IN FUND COMPLEX INCLUDING OTHER
BIRTHDATE POSITION(s) HELD APPOINTED OVERSEEN BY DIRECTORSHIPS
& ADDRESS WITH THE FUNDS AND TERM(1) BOARD MEMBER DURING PAST 5 YEARS
------------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT BOARD MEMBERS:
o JUDITH M. STOCKDALE Executive Director, Gaylord and Dorothy
12/29/47 Donnelley Foundation (since 1994); prior
333 W. Wacker Drive Board Member 1997 199 thereto, Executive Director, Great Lakes
Chicago, IL 60606 Protection Fund (from 1990 to 1994).
o CAROLE E. STONE Director, Chicago Board Options Exchange (since
6/28/47 2006); Director, C2 Options Exchange,
333 W. Wacker Drive Board Member 2007 199 Incorporated (since 2009); Commissioner, New
Chicago, IL 60606 York State Commission on Public Authority
Reform (since 2005); formerly, Chair, New York
Racing Association Oversight Board (2005-2007).
o TERENCE J. TOTH Director, Legal & General Investment Management
9/29/59 America, Inc. (since 2008); Managing Partner,
333 W. Wacker Drive Board Member 2008 199 Promus Capital (since 2008); formerly, CEO and
Chicago, IL 60606 President, Northern Trust Global Investments
(2004-2007); Executive Vice President,
Quantitative Management & Securities Lending
(2000-2004); prior thereto, various positions
with Northern Trust Company (since 1994);
member: Goodman Theatre Board (since 2004),
Chicago Fellowship Boards (since 2005),
University of Illinois Leadership Council Board
(since 2007) and Catalyst Schools of Chicago
Board (since 2008); formerly, member: Northern
Trust Mutual Funds Board (2005-2007), Northern
Trust Global Investments Board (2004-2007),
Northern Trust Japan Board (2004-2007),
Northern Trust Securities Inc. Board
(2003-2007) and Northern Trust Hong Kong Board
(1997-2004).
INTERESTED BOARD MEMBER:
o JOHN P. AMBOIAN(2) Chief Executive Officer (since July 2007),
6/14/61 Director (since 1999) and Chairman (since 2007)
333 W. Wacker Drive Board Member 2008 199 of Nuveen Investments, Inc.; Chief Executive
Chicago, IL 60606 Officer (since 2007) of Nuveen Asset
Management, Nuveen Investments Advisors, Inc.;
President (since 2005) of Nuveen Commodities
Asset Management, LLC.
Nuveen Investments 87
Board Members & Officers (continued)
------------------------------------------------------------------------------------------------------------------------------------
NUMBER
OF PORTFOLIOS
NAME, YEAR FIRST IN FUND COMPLEX PRINCIPAL
BIRTHDATE POSITION(s) HELD ELECTED OR OVERSEEN OCCUPATION(s)
AND ADDRESS WITH THE FUNDS APPOINTED(3) BY OFFICER DURING PAST 5 YEARS
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS:
o GIFFORD R. ZIMMERMAN Managing Director (since 2002), Assistant
9/9/56 Chief Secretary and Associate General Counsel of
333 W. Wacker Drive Administrative 1988 199 Nuveen Investments, LLC; Managing Director,
Chicago, IL 60606 Officer Associate General Counsel and Assistant
Secretary, of Nuveen Asset Management (since
2002) and of Symphony Asset Management LLC,
(since 2003); Vice President and Assistant
Secretary of NWQ Investment Management
Company, LLC. (since 2002), Nuveen Investments
Advisers Inc. (since 2002), Tradewinds Global
Investors, LLC, and Santa Barbara Asset
Management, LLC (since 2006), Nuveen HydePark
Group LLC and Nuveen Investment Solutions,
Inc. (since 2007); Managing Director (since
2004) and Assistant Secretary (since 1994) of
Nuveen Investments, Inc.; Managing Director
(since 2005) of Nuveen Commodities Asset
Management, LLC; Chartered Financial Analyst.
o WILLIAM ADAMS IV Executive Vice President of Nuveen
6/9/55 Investments, Inc.; Executive Vice President,
333 W. Wacker Drive Vice President 2007 124 U.S. Structured Products of Nuveen
Chicago, IL 60606 Investments, LLC, (since 1999), ; Executive
Vice President (since 2005) of Nuveen
Commodities Asset Management, LLC.
o CEDRIC H. ANTOSIEWICZ Managing Director, (since 2004), previously,
1/11/62 Vice President (1993-2004) of Nuveen
333 W. Wacker Drive Vice President 2007 124 Investments, LLC.
Chicago, IL 60606
o NIZIDA ARRIAGA Senior Vice President of Nuveen Investments,
6/1/68 LLC (since 2010); formerly, Vice President
333 W. Wacker Drive Vice President 2009 199 (2007-2010); previously, Portfolio Manager,
Chicago, IL 60606 Allstate Investments, LLC (1996-2006);
Chartered Financial Analyst.
o MICHAEL T. ATKINSON Vice President (since 2002) of Nuveen
2/3/66 Vice President Investments, LLC.; Vice President of Nuveen
333 W. Wacker Drive and Assistant 2000 199 Asset Management (since 2005).
Chicago, IL 60606 Secretary
o MARGO L. COOK Executive Vice President (since Oct 2008) of
4/11/64 Nuveen Investments, Inc.; previously, Head of
333 W. Wacker Drive Vice President 2009 199 Institutional Asset Management (2007-2008) of
Chicago, IL 60606 Bear Stearns Asset Management; Head of
Institutional Asset Mgt (1986-2007) of Bank of
NY Mellon; Chartered Financial Analyst.
o LORNA C. FERGUSON Managing Director (since 2004) of Nuveen
10/24/45 Investments, LLC and Managing Director (since
333 W. Wacker Drive Vice President 1998 199 2005) of Nuveen Asset Management.
Chicago, IL 60606
o STEPHEN D. FOY Vice President (since 1993) and Funds
5/31/54 Vice President Controller (since 1998) of Nuveen Investments,
333 W. Wacker Drive and Controller 1998 199 LLC; Vice President (since 2005) of Nuveen
Chicago, IL 60606 Asset Management; Certified Public Accountant.
o SCOTT S. GRACE Managing Director, Corporate Finance &
8/20/70 Vice President Development, Treasurer (since September 2009)
333 W. Wacker Drive and Treasurer 2009 199 of Nuveen Investments, LLC; Managing Director
Chicago, IL 60606 and Treasurer of Nuveen Asset Management
(since 2009); formerly, Treasurer (2006-2009),
Senior Vice President (2008-2009), previously,
Vice President (2006-2008) of Janus Capital
Group, Inc.; formerly. Senior Associate in
Morgan Stanley's Global Financial Services
Group (2000-2003); Chartered Accountant
Designation.
88 Nuveen Investments
------------------------------------------------------------------------------------------------------------------------------------
NUMBER
OF PORTFOLIOS
NAME, YEAR FIRST IN FUND COMPLEX PRINCIPAL
BIRTHDATE POSITION(s) HELD ELECTED OR OVERSEEN OCCUPATION(s)
AND ADDRESS WITH THE FUNDS APPOINTED(3) BY OFFICER DURING PAST 5 YEARS
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS:
o WILLIAM T. HUFFMAN Chief Operating Officer, Municipal Fixed
5/7/69 Income (since 2008) of Nuveen Asset
333 W. Wacker Drive Vice President 2009 135 Management; previously, Chairman, President
Chicago, IL 60606 and Chief Executive Officer (2002 - 2007) of
Northern Trust Global Advisors, Inc. and Chief
Executive Officer (2007) of Northern Trust
Global Investments Limited; Certified Public
Accountant.
o WALTER M. KELLY Senior Vice President (since 2008), Vice
2/24/70 Chief Compliance President (2006-2008) formerly, Assistant Vice
333 W. Wacker Drive Officer and 2003 199 President and Assistant General Counsel
Chicago, IL 60606 Vice President (2003-2006) of Nuveen Investments, LLC; Senior
Vice President (since 2008), formerly, Vice
President (2006-2008) and Assistant Secretary
(since 2008) of Nuveen Asset Management.
o DAVID J. LAMB Senior Vice President (since 2009), formerly,
3/22/63 Vice President (2000-2009) of Nuveen
333 W. Wacker Drive Vice President 2000 199 Investments, LLC; Vice President (since 2005)
Chicago, IL 60606 of Nuveen Asset Management; Certified Public
Accountant.
o TINA M. LAZAR Senior Vice President (since 2009), formerly,
8/27/61 Vice President of Nuveen Investments, LLC
333 W. Wacker Drive Vice President 2002 199 (1999-2009); Vice President of Nuveen Asset
Chicago, IL 60606 Management (since 2005).
o LARRY W. MARTIN Senior Vice President (since 2010), Assistant
7/27/51 Vice President Secretary and Assistant General Counsel of
333 W. Wacker Drive and Assistant 1988 199 Nuveen Investments, LLC; Vice President (since
Chicago, IL 60606 Secretary 2005) and Assistant Secretary of Nuveen
Investments, Inc.; Vice President (since 2005)
and Assistant Secretary (since 1997) of Nuveen
Asset Management; Vice President and Assistant
Secretary of Nuveen Investments Advisers Inc.
(since 2002); NWQ Investment Management
Company, LLC (since 2002), Symphony Asset
Management LLC (since 2003), Tradewinds Global
Investors, LLC, Santa Barbara Asset Management
LLC (since 2006) and of Nuveen HydePark Group,
LLC and Nuveen Investment Solutions, Inc.
(since 2007).
o KEVIN J. MCCARTHY Managing Director (since 2008), formerly, Vice
3/26/66 Vice President President (2007-2008), Nuveen Investments,
333 W. Wacker Drive and Secretary 2007 199 LLC; Managing Director (since 2008), formerly,
Chicago, IL 60606 Vice President, and Assistant Secretary,
Nuveen Asset Management, and Nuveen
Investments Holdings, Inc.; Vice President
(since 2007) and Assistant Secretary, Nuveen
Investment Advisers Inc., Nuveen Investment
Institutional Services Group LLC, NWQ
Investment Management Company, LLC, Tradewinds
Global Investors LLC, NWQ Holdings, LLC,
Symphony Asset Management LLC, Santa Barbara
Asset Management LLC, Nuveen HydePark Group,
LLC and Nuveen Investment Solutions, Inc.
(since 2007); prior thereto, Partner, Bell,
Boyd & Lloyd LLP (1997- 2007).
o JOHN V. MILLER Chief Investment Officer and Managing Director
4/10/67 (since 2007), formerly, Vice President
333 W. Wacker Drive Vice President 2007 135 (2002-2007) of Nuveen Asset Management and
Chicago, IL 60606 Managing Director (since 2007), formerly Vice
President (2002-2007) Nuveen Investments, LLC;
Chartered Financial Analyst.
Nuveen Investments 89
Board Members & Officers (continued)
------------------------------------------------------------------------------------------------------------------------------------
NUMBER
OF PORTFOLIOS
NAME, YEAR FIRST IN FUND COMPLEX PRINCIPAL
BIRTHDATE POSITION(s) HELD ELECTED OR OVERSEEN OCCUPATION(s)
AND ADDRESS WITH THE FUNDS APPOINTED(3) BY OFFICER DURING PAST 5 YEARS
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS:
o GREGORY MINO Senior Vice President (since 2010) of Nuveen
1/4/71 Investments, LLC, formerly Vice President
333 W. Wacker Drive Vice President 2009 199 (2008-2010); previously, Director (2004- 2007)
Chicago, IL 60606 and Executive Director (2007-2008) of UBS
Global Asset Management; previously, Vice
President (2000-2003) and Director (2003-2004)
of Merrill Lynch Investment Managers;
Chartered Financial Analyst.
o CHRISTOPHER M. ROHRBACHER Vice President, Nuveen Investments, LLC (since
8/1/71 Vice President 2008); Vice President and Assistant Secretary,
333 W. Wacker Drive and Assistant 2008 199 Nuveen Asset Management (since 2008); prior
Chicago, IL 60606 Secretary thereto, Associate, Skadden, Arps, Slate
Meagher & Flom LLP (2002-2008).
o JAMES F. RUANE Vice President, Nuveen Investments, LLC (since
7/3/62 Vice President 2007); prior thereto, Partner, Deloitte &
333 W. Wacker Drive and Assistant 2007 199 Touche USA LLP (2005-2007), formerly, senior
Chicago, IL 60606 Secretary tax manager (2002-2005); Certified Public
Accountant.
o MARK L. WINGET Vice President, Nuveen Investments, LLC (since
12/21/68 Vice President 2008); Vice President and Assistant Secretary,
333 W. Wacker Drive and Assistant 2008 199 Nuveen Asset Management (since 2008); prior
Chicago, IL 60606 Secretary thereto, Counsel, Vedder Price P.C.
(1997-2007).
(1) For California Value (NCA) and California Value 2 (NCB) Board Members
serve three year terms. The Board of Trustees for NCA and NCB are divided
into three classes, Class I, Class II, and Class III, with each being
elected to serve until the third succeeding annual shareholders' meeting
subsequent to its election or thereafter in each case when its respective
successors are duly elected or appointed. For California Performance Plus
(NCP), California Opportunity (NCO), California Investment Quality (NQC),
California Select Quality (NVC) and California Quality Income (NUC), the
Board Members serve a one year term to serve until the next annual meeting
or until their successors shall have been duly elected and qualified. The
first year elected or appointed represents the year in which the board
member was first elected or appointed to any fund in the Nuveen Complex
(2) Mr. Amboian is an interested trustee because of his position with Nuveen
Investments, Inc. and certain of its subsidiaries, which are affiliates of
the Nuveen Funds.
(3) Officers serve one year terms through July of each year. The year first
elected or appointed represents the year in which the Officer was first
elected or appointed to any fund in the Nuveen Complex.
90 Nuveen Investments
Annual Investment Management Agreement Approval Process
The Investment Company Act of 1940, as amended (the "1940 ACT"), provides, in
substance, that each investment advisory agreement between a fund and its
investment adviser will continue in effect from year to year only if its
continuance is approved at least annually by the fund's board members, including
by a vote of a majority of the board members who are not parties to the advisory
agreement or "interested persons" of any parties (the "INDEPENDENT BOARD
MEMBERS"), cast in person at a meeting called for the purpose of considering
such approval. In connection with such approvals, the fund's board members must
request and evaluate, and the investment adviser is required to furnish, such
information as may be reasonably necessary to evaluate the terms of the advisory
agreement. Accordingly, at a meeting held on May 27-29, 2009 (the "MAY
MEETING"), the Boards of Trustees or Directors (as the case may be) (each a
"Board" and each Trustee or Director, a "BOARD MEMBER") of the Funds (other than
the Nuveen California Municipal Value Fund 2 (the "MUNICIPAL VALUE FUND 2"),
which is new), including a majority of the Independent Board Members, considered
and approved the continuation of the advisory agreements (each an "ADVISORY
AGREEMENT") between each Fund (other than the Municipal Value Fund 2) and Nuveen
Asset Management ("NAM") for an additional one-year period. In preparation for
their considerations at the May Meeting, such Boards also held a separate
meeting on April 21-22, 2009 (the "APRIL MEETING"). Accordingly, the factors
considered and determinations made regarding the renewals by the Independent
Board Members include those made at the April Meeting. The initial Advisory
Agreement between NAM and the Municipal Value Fund 2 was approved separately at
meetings of the Board of such Fund held on February 27, 2009 and March 16, 2009.
The discussion of the approvals for the Funds other than the Municipal Value
Fund 2 is set forth below in Section I, followed by the discussion in Section II
of the approval for the Municipal Value Fund 2.
I.
NUVEEN CALIFORNIA MUNICIPAL VALUE FUND, INC.
NUVEEN CALIFORNIA PERFORMANCE PLUS MUNICIPAL FUND, INC.
NUVEEN CALIFORNIA MUNICIPAL MARKET OPPORTUNITY FUND, INC.
NUVEEN CALIFORNIA INVESTMENT QUALITY MUNICIPAL FUND, INC.
NUVEEN CALIFORNIA SELECT QUALITY MUNICIPAL FUND, INC.
NUVEEN CALIFORNIA QUALITY INCOME MUNICIPAL FUND, INC.
Nuveen Investments 91
Annual Investment Management Agreement
Approval Process (continued)
With respect to the Funds listed above (for purposes of this Section I, the
"FUNDS"), in evaluating the applicable Advisory Agreements (for purposes of this
Section I, the "ADVISORY AGREEMENTS"), the Independent Board Members reviewed a
broad range of information relating to the Funds and NAM, including absolute
performance, fee and expense information for the Funds as well as comparative
performance, fee and expense information for a comparable peer group of funds,
the performance information of recognized and/or customized benchmarks (as
applicable) of the Funds, the profitability of Nuveen for its advisory
activities (which includes its wholly owned subsidiaries other than Winslow
Capital Management, Inc. ("WINSLOW CAPITAL"), which was recently acquired in
December 2008), and other information regarding the organization, personnel, and
services provided by NAM. The Independent Board Members also met quarterly as
well as at other times as the need arose during the year and took into account
the information provided at such meetings and the knowledge gained therefrom.
Prior to approving the renewal of the Advisory Agreements, the Independent Board
Members reviewed the foregoing information with their independent legal counsel
and with management, reviewed materials from independent legal counsel
describing applicable law and their duties in reviewing advisory contracts, and
met with independent legal counsel in private sessions without management
present. The Independent Board Members considered the legal advice provided by
independent legal counsel and relied upon their knowledge of NAM, its services
and the Funds resulting from their meetings and other interactions throughout
the year and their own business judgment in determining the factors to be
considered in evaluating the Advisory Agreements. Each Board Member may have
accorded different weight to the various factors in reaching his or her
conclusions with respect to a Fund's Advisory Agreement. The Independent Board
Members did not identify any single factor as all-important or controlling. The
Independent Board Members' considerations were instead based on a comprehensive
consideration of all the information presented. The principal factors considered
by the Board and its conclusions are described below.
A. NATURE, EXTENT AND QUALITY OF SERVICES
In considering renewal of the Advisory Agreements, the Independent Board Members
considered the nature, extent and quality of NAM's services, including advisory
services and administrative services. The Independent Board Members reviewed
materials outlining, among other things, NAM's organization and business; the
types of services that NAM or its affiliates provide and are expected to provide
to the Funds; the performance record of the applicable Fund (as described in
further detail below); and any initiatives Nuveen had taken for the applicable
fund product line.
92 Nuveen Investments
In reviewing the services provided and the initiatives undertaken during the
past year, the Independent Board Members recognized the severe market turmoil
experienced in the capital markets during recent periods, including sustained
periods of high volatility, credit disruption and government intervention. The
Independent Board Members considered NAM's efforts, expertise and other actions
taken to address matters as they arose that impacted the Funds. The Independent
Board Members recognized the role of the Investment Services group which, among
other things, monitors the various positions throughout the Nuveen fund complex
to identify and address any systematic risks. In addition, the Capital Markets
Committee of NAM provides a multi-departmental venue for developing new policies
to mitigate any risks. The Independent Board Members further recognized NAM's
continuous review of the Nuveen funds' investment strategies and mandates in
seeking to continue to refine and improve the investment process for the funds,
particularly in light of market conditions. With respect to closed-end funds
that issued auction rate preferred shares ("ARPS") or that otherwise utilize
leverage, the Independent Board Members noted, in particular, NAM's efforts in
refi-nancing the preferred shares of such funds frozen by the collapse of the
auction rate market and managing leverage during a period of rapid market
declines, particularly for the non-equity funds. Such efforts included
negotiating and maintaining the availability of bank loan facilities and other
sources of credit used for investment purposes or to satisfy liquidity needs,
liquidating portfolio securities during difficult times to meet leverage ratios,
and seeking alternative forms of debt and other leverage that may over time
reduce financing costs associated with ARPs and enable the funds that have
issued ARPs to restore liquidity to ARPs holders. The Independent Board Members
also noted Nuveen's continued commitment and efforts to keep investors and
financial advisers informed as to its progress with the ARPs through, among
other things, conference calls, emails, press releases, information posted on
its website, and telephone calls and in-person meetings with financial advisers.
In addition to the foregoing, the Independent Board Members also noted the
additional services that NAM or its affiliates provide to closed-end funds,
including, in particular, Nuveen's continued commitment to supporting the
secondary market for the common shares of its closed-end funds through a variety
of programs designed to raise investor and analyst awareness and understanding
of closed-end funds. These efforts include maintaining an investor relations
program to provide timely information and education to financial advisers and
investors; providing advertising and marketing for the closed-end funds;
maintaining websites; and providing educational seminars.
As part of their review, the Independent Board Members also evaluated the
background, experience and track record of NAM's investment personnel. In this
regard, the Independent Board Members considered any changes in the personnel,
and the impact on the level of services provided to the Funds, if any. The
Independent Board Members also reviewed information regarding portfolio manager
compensation arrangements to evaluate NAM's ability to attract and retain high
quality investment personnel, preserve stability, and reward performance but not
provide an incentive for taking undue risks.
Nuveen Investments 93
Annual Investment Management Agreement
Approval Process (continued)
In addition to advisory services, the Independent Board Members considered the
quality of administrative services provided by NAM and its affiliates including
product management, fund administration, oversight of service providers,
shareholder services, administration of Board relations, regulatory and
portfolio compliance and legal support. Given the importance of compliance, the
Independent Board Members considered NAM's compliance program, including the
report of the chief compliance officer regarding the Funds' compliance policies
and procedures.
Based on their review, the Independent Board Members found that, overall, the
nature, extent and quality of services provided (and expected to be provided) to
the respective Funds under the Advisory Agreements were satisfactory.
B. THE INVESTMENT PERFORMANCE OF THE FUNDS AND NAM
The Board considered the investment performance of each Fund, including the
Fund's historic performance as well as its performance compared to funds with
similar investment objectives (the "PERFORMANCE PEER GROUP") based on data
provided by an independent provider of mutual fund data as well as recognized
and/or customized benchmarks (as applicable). The Independent Board Members
reviewed performance information including, among other things, total return
information compared with the Fund's Performance Peer Group and recognized
and/or customized benchmarks (as applicable) for the quarter-, one-, three- and
five-year periods (as applicable) ending December 31, 2008 and for the same
periods (as applicable) ending March 31, 2009. The Independent Board Members
also reviewed performance information of the Nuveen municipal funds managed by
NAM in the aggregate ranked by peer group and the performance of such funds, in
the aggregate, relative to their benchmark. This information supplemented the
Fund performance information provided to the Board at each of its quarterly
meetings.
In comparing a fund's performance with that of its Performance Peer Group, the
Independent Board Members took into account that the closest Performance Peer
Group in certain instances may not adequately reflect the respective fund's
investment objectives and strategies thereby hindering a meaningful comparison
of the fund's performance with that of the Performance Peer Group. The
Independent Board Members further considered the performance of the Funds in the
context of the volatile market conditions during the past year, and their impact
on various asset classes and the portfolio management of the Funds.
Based on their review and factoring in the severity of market turmoil in 2008,
the Independent Board Members determined that each Fund's investment performance
over time had been satisfactory.
94 Nuveen Investments
C. FEES, EXPENSES AND PROFITABILITY
1. FEES AND EXPENSES
The Board evaluated the management fees and expenses of each Fund
reviewing, among other things, such Fund's gross management fees, net
management fees and total expense ratios (before and after expense
reimbursements and/or waivers) in absolute terms as well as compared to
the fee and expenses of a comparable universe of unaffiliated funds based
on data provided by an independent fund data provider (the "PEER
UNIVERSE") and in certain cases, to a more focused subset of funds in the
Peer Universe (the "PEER GROUP").
The Independent Board Members further reviewed data regarding the
construction of the applicable Peer Universe and Peer Group. In reviewing
the comparisons of fee and expense information, the Independent Board
Members took into account that in certain instances various factors such
as the asset level of a fund relative to peers, the size and particular
composition of the Peer Universe or Peer Group, the investment objectives
of the peers, expense anomalies, changes in the funds comprising the Peer
Universe or Peer Group from year to year, levels of reimbursement and the
timing of information used may impact the comparative data, thereby
limiting the ability to make a meaningful comparison. In addition, the
Independent Board Members also considered, among other things, the
differences in the use and type of leverage compared to the peers. The
Independent Board Members also considered the differences in the states
reflected in the respective Peer Group. In reviewing the fee schedule for
a Fund, the Independent Board Members also considered the fund-level and
complex-wide breakpoint schedules (described in further detail below) and
any fee waivers and reimbursements provided by Nuveen (applicable, in
particular, for certain closed-end funds launched since 1999).
Based on their review of the fee and expense information provided, the
Independent Board Members determined that each Fund's management fees and
net total expense ratio were reasonable in light of the nature, extent and
quality of services provided to the Fund.
2. COMPARISONS WITH THE FEES OF OTHER CLIENTS
The Independent Board Members further reviewed information regarding the
nature of services and fee rates offered by NAM to other clients. Such
other clients include NAM's municipal separately managed accounts. In
evaluating the comparisons of fees, the Independent Board Members noted
that the fee rates charged to the Funds and other clients vary, among
other things, because of the different services involved and the
additional regulatory and compliance requirements associated with
registered investment companies, such as the Funds. Accordingly, the
Independent Board Members considered the differences in the product types,
including, but not limited to, the services provided, the structure and
operations, product distribution and costs thereof, portfolio investment
policies, investor profiles, account sizes and regulatory requirements.
The Independent Board Members noted, in particular, that the range of
services provided to the Funds (as discussed above) is much more extensive
than that provided to separately managed accounts. Given the inherent
differences in the products, particularly the extensive services provided
to the Funds, the Independent Board Members believe such facts justify the
different levels of fees.
Nuveen Investments 95
Annual Investment Management Agreement
Approval Process (continued)
3. PROFITABILITY OF NUVEEN
In conjunction with its review of fees, the Independent Board Members also
considered the profitability of Nuveen for its advisory activities (which
incorporated Nuveen's wholly-owned affiliated sub-advisers other than
Winslow Capital) and its financial condition. The Independent Board
Members reviewed the revenues and expenses of Nuveen's advisory activities
for the last two years, the allocation methodology used in preparing the
profitability data and an analysis of the key drivers behind the changes
in revenues and expenses that impacted profitability in 2008. In addition,
the Independent Board Members reviewed information regarding the financial
results of Nuveen for 2008 based on its Form 8-K filed on March 31, 2009.
The Independent Board Members noted this information supplemented the
profitability information requested and received during the year to help
keep them apprised of developments affecting profitability (such as
changes in fee waivers and expense reimbursement commitments). In this
regard, the Independent Board Members noted that they had also appointed
an Independent Board Member as a point person to review and keep them
apprised of changes to the profitability analysis and/or methodologies
during the year. The Independent Board Members also considered Nuveen's
revenues for advisory activities, expenses, and profit margin compared to
that of various unaffiliated management firms with similar amounts of
assets under management and relatively comparable asset composition
prepared by Nuveen.
In reviewing profitability, the Independent Board Members recognized the
subjective nature of determining profitability which may be affected by
numerous factors including the allocation of expenses. Further, the
Independent Board Members recognized the difficulties in making
comparisons as the profitability of other advisers generally is not
publicly available and the profitability information that is available for
certain advisers or management firms may not be representative of the
industry and may be affected by, among other things, the adviser's
particular business mix, capital costs, types of funds managed and expense
allocations. Notwithstanding the foregoing, the Independent Board Members
reviewed Nuveen's methodology and assumptions for allocating expenses
across product lines to determine profitability. In reviewing
profitability, the Independent Board Members recognized Nuveen's
investment in its fund business.
Based on their review, the Independent Board Members concluded that
Nuveen's level of profitability for its advisory activities was reasonable
in light of the services provided.
In evaluating the reasonableness of the compensation, the Independent
Board Members also considered other amounts paid to NAM by the Funds as
well as any indirect benefits (such as soft dollar arrangements, if any)
NAM and its affiliates receive, or are expected to receive, that are
directly attributable to the management of the Funds, if any. See Section
E below for additional information on indirect benefits NAM may receive as
a result of its relationship with the Funds. Based on their review of the
overall fee arrangements of each Fund, the Independent Board Members
determined that the advisory fees and expenses of the respective Fund were
reasonable.
96 Nuveen Investments
D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE
With respect to economies of scale, the Independent Board Members have
recognized the potential benefits resulting from the costs of a fund being
spread over a larger asset base, although economies of scale are difficult to
measure and predict with precision, particularly on a fund-by-fund basis. One
method to help ensure the shareholders share in these benefits is to include
breakpoints in the advisory fee schedule. Generally, management fees for funds
in the Nuveen complex are comprised of a fund-level component and a
complex-level component, subject to certain exceptions. Accordingly, the
Independent Board Members reviewed and considered the applicable fund-level
breakpoints in the advisory fee schedules that reduce advisory fees as asset
levels increase. In this regard, the Independent Board Members noted that
although closed-end funds may from time-to-time make additional share offerings,
the growth of their assets will occur primarily through the appreciation of such
funds' investment portfolio. While economies of scale result when costs can be
spread over a larger asset base, the Independent Board Members also recognized
that the asset levels generally declined in 2008 due to, among other things, the
market downturn. Accordingly, for funds with a reduction in assets under
management, advisory fee levels may have increased as breakpoints in the fee
schedule were no longer surpassed.
In addition to fund-level advisory fee breakpoints, the Board also considered
the Funds' complex-wide fee arrangement. Pursuant to the complex-wide fee
arrangement, the fees of the funds in the Nuveen complex generally are reduced
as the assets in the fund complex reach certain levels. The complex-wide fee
arrangement seeks to provide the benefits of economies of scale to fund
shareholders when total fund complex assets increase, even if assets of a
particular fund are unchanged or have decreased. The approach reflects the
notion that some of Nuveen's costs are attributable to services provided to all
its funds in the complex and therefore all funds benefit if these costs are
spread over a larger asset base. Generally, the complex-wide pricing reduces
Nuveen's revenue because total complex fund assets have consistently grown in
prior years. As noted, however, total fund assets declined in 2008 resulting in
a smaller downward adjustment of revenues due to complex-wide pricing compared
to the prior year.
Based on their review, the Independent Board Members concluded that the
breakpoint schedules and complex-wide fee arrangement were acceptable and
reflect economies of scale to be shared with shareholders when assets under
management increase.
E. INDIRECT BENEFITS
In evaluating fees, the Independent Board Members received and considered
information regarding potential "fall out" or ancillary benefits NAM or its
affiliates may receive as a result of its relationship with each Fund. In this
regard, the Independent Board Members considered revenues received by affiliates
of NAM for serving as agent at Nuveen's trading desk.
Nuveen Investments 97
Annual Investment Management Agreement
Approval Process (continued)
In addition to the above, the Independent Board Members considered whether NAM
received any benefits from soft dollar arrangements whereby a portion of the
commissions paid by a Fund for brokerage may be used to acquire research that
may be useful to NAM in managing the assets of the Funds and other clients. The
Independent Board Members noted that NAM does not currently have any soft dollar
arrangements; however, to the extent certain bona fide agency transactions that
occur on markets that traditionally trade on a principal basis and riskless
principal transactions are considered as generating "commissions," NAM intends
to comply with the applicable safe harbor provisions.
Based on their review, the Independent Board Members concluded that any indirect
benefits received by NAM as a result of its relationship with the Funds were
reasonable and within acceptable parameters.
F. OTHER CONSIDERATIONS
The Independent Board Members did not identify any single factor discussed
previously as all-important or controlling. The Board Members, including the
Independent Board Members, unanimously concluded that the terms of the Advisory
Agreements are fair and reasonable, that NAM's fees are reasonable in light of
the services provided to each Fund and that the Advisory Agreements be renewed.
II
NUVEEN CALIFORNIA MUNICIPAL VALUE FUND 2
The Board is responsible for approving the advisory arrangement of the Municipal
Value Fund 2 (for purposes of this Section II, the "FUND") and, at meetings held
on February 27, 2009 and March 16, 2009 (collectively, for purposes of this
Section II, the "MEETING"), the Board Members, including the Independent Board
Members, considered and approved the investment advisory agreement (for purposes
of this Section II, the "ADVISORY AGREEMENT") between the Fund and NAM.
To assist the Board in its evaluation of the Advisory Agreement at the Meeting,
the Independent Board Members had received, in adequate time in advance of the
Meeting or at prior meetings, materials which outlined, among other things:
o the nature, extent and quality of services expected to be provided
by NAM;
o the organization of NAM, including the responsibilities of various
departments and key personnel;
o the expertise and background of NAM with respect to the Fund's
investment strategy;
o the performance records of NAM and of certain similar Nuveen funds
(as described below);
o the profitability of Nuveen Investments, Inc. ("NUVEEN") (which
incorporated Nuveen's wholly-owned affiliated sub-advisers);
o the proposed management fees of NAM, including comparisons of such
fees with the management fees of comparable, unaffiliated funds, as
well as comparable, affiliated funds;
98 Nuveen Investments
o the advisory fees NAM assesses to other types of investment products
or clients;
o the expected expenses of the Fund, including comparisons of the
Fund's expected expense ratio with the expense ratios of comparable,
unaffiliated funds, as well as comparable, affiliated funds; and
o the soft dollar practices of NAM, if any.
At the Meeting, NAM made a presentation to and responded to questions from the
Board. During the Meeting, the Independent Board Members also met privately with
their legal counsel to review the Board's duties under the 1940 Act, the general
principles of state law in reviewing and approving advisory contracts, the
standards used by courts in determining whether investment company boards of
directors have fulfilled their duties, factors to be considered in voting on
advisory contracts and an adviser's fiduciary duty with respect to advisory
agreements and compensation. It is with this background that the Independent
Board Members considered the advisory agreement with NAM for the Fund. As
outlined in more detail below, the Independent Board Members considered all
factors they believed relevant with respect to the Fund, including the
following: (a) the nature, extent and quality of the services to be provided by
NAM; (b) investment performance, as described below; (c) the profitability of
Nuveen and its affiliates; (d) the extent to which economies of scale would be
realized; and (e) whether fee levels reflect these economies of scale for the
benefit of Fund investors.
A. NATURE, EXTENT AND QUALITY OF SERVICES
The Independent Board Members considered the nature, extent and quality of NAM's
services, including advisory services and administrative services. As NAM
already serves as adviser to other Nuveen funds overseen by the Board Members,
the Board has a good understanding of NAM's organization, operations and
personnel. As the Independent Board Members meet regularly throughout the year
to oversee the Nuveen funds, including funds currently advised by NAM, the
Independent Board Members have relied upon their knowledge from their meetings
and any other interactions throughout the year of NAM and its services in
evaluating the Advisory Agreement.
At the Meeting and at prior meetings, the Independent Board Members reviewed
materials outlining, among other things, Nuveen's organization and business; the
types of services that NAM or its affiliates provide to the Nuveen funds and are
expected to provide to the Fund; and NAM's experience with applicable investment
strategies. The Independent Board Members further evaluated the professional
experience, qualifications and credentials of NAM's investment personnel.
In addition to advisory services, the Independent Board Members considered the
quality of any administrative or non-advisory services to be provided. In this
regard, NAM is expected to provide the Fund with such administrative and other
services (exclusive of, and in addition to, any such services provided by others
for the Fund) and officers and other personnel as are necessary for the
operations of the Fund. In addition to investment management services, NAM and
its affiliates will provide the Fund with a wide range of services, including,
among other things, product management, fund administration, oversight of
service providers, shareholder services, administration of Board relations,
regulatory and portfolio compliance and legal support.
Nuveen Investments 99
Annual Investment Management Agreement
Approval Process (continued)
In addition to the foregoing services, the Independent Board Members also noted
the additional services that NAM or its affiliates provide to closed-end funds,
including, in particular, its secondary market support activities and the costs
of such activities. The Independent Board Members have recognized Nuveen's
continued commitment to supporting the secondary market for the common shares of
its closed-end funds through a variety of programs designed to raise investor
and analyst awareness and understanding of closed-end funds. These efforts
include maintaining an investor relations program to timely provide information
and education to financial advisers and investors; providing advertising and
marketing for the closed-end funds; maintaining its closed-end fund website; and
providing educational seminars.
Based on their review, the Independent Board Members found that, overall, the
nature, extent and quality of services expected to be provided to the Fund under
the Advisory Agreement were satisfactory.
B. INVESTMENT PERFORMANCE
The Fund is new and therefore does not have its own performance history.
However, the Independent Board Members are familiar with NAM's performance
record on other Nuveen funds, and the Fund is expected to employ a substantially
similar investment philosophy and strategies that have guided two other Nuveen
state municipal closed-end funds (specifically, the Nuveen New York Municipal
Value Fund, Inc. (NNY) and the Nuveen California Municipal Value Fund, Inc.
(NCA)). Accordingly, the Board Members were provided with certain performance
information for these comparable funds, including calendar year total returns
for the years 2000 through 2008.
C. FEES, EXPENSES AND PROFITABILITY
1. FEES AND EXPENSES
In evaluating the management fees and expenses that the Fund was expected
to bear, the Independent Board Members considered, among other things, the
Fund's proposed management fee structure and its expected expense ratios
in absolute terms as well as compared with the fees and expense ratios of
comparable, unaffiliated funds and comparable, affiliated funds. In this
regard, the Independent Board Members noted the limited universe of
municipal funds with an unleveraged capital structure, and the even more
limited universe of state municipal funds with an unleveraged capital
structure (I.E., none other than for the states of California and New
York), which made it difficult to make peer group comparisons.
In addition, the Fund was not expected to issue preferred shares or debt
instruments; however, the Board Members noted that the Fund may make
investments in inverse floating rate securities (including inverse
floating rate securities representing interests in so-called "tender
option bond trusts" formed by third-party sponsors for the purpose of
holding municipal bonds). The Independent Board Members recognized that
assets financed through the creation of tender option bond trusts in which
the Fund may invest or other financial leverage used would be included in
the amount of assets upon which the advisory fee is calculated. In this
regard, the Independent Board Members noted that the advisory fee is based
on a percentage of average daily "Managed Assets." "Managed Assets"
generally means the total
100 Nuveen Investments
assets of the Fund (including assets attributable to the Fund's use of
financial leverage such as, but not limited to, proceeds from tender
option bond trusts) minus the sum of accrued liabilities (other than Fund
liabilities incurred for the express purpose of creating financial
leverage). Accordingly, the advisory fees paid to NAM for investment
advisory services will be higher if the Fund uses financial leverage,
which may create a conflict of interest between NAM and the Fund's
shareholders. This methodology is consistent with that used on Nuveen
taxable leveraged funds and a Nuveen national municipal closed-end fund
with a similar capital structure. The Independent Board Members also
considered the fund-level breakpoint schedule and the complex-wide
breakpoint schedule (described in further detail below) and any applicable
expense reimbursements to be provided. Based on their review of the fee
and expense information provided, the Independent Board Members determined
that the Fund's management fees and net total expense ratio were
reasonable in light of the nature, extent and quality of services to be
provided to the Fund.
2. COMPARISONS WITH THE FEES OF OTHER CLIENTS
Due to their experience with other Nuveen funds, the Board Members were
familiar with the fees NAM assesses to other clients of Nuveen or its
affiliates, including NAM's municipal separately managed accounts. In
evaluating the comparisons of fees, the Independent Board Members have
noted, at the Meeting or at prior meetings, that the fee rates charged to
a fund (such as the Fund) and charged to other clients vary, among other
things, because of the different services involved and the additional
regulatory and compliance requirements associated with registered
investment companies, such as the Fund. Accordingly, the Independent Board
Members have considered the differences in the product types, including,
but not limited to, the services to be provided, the structure and
operations, product distribution and costs thereof, portfolio investment
policies, investor profiles, account sizes and regulatory requirements.
The Independent Board Members have noted, in particular, that the range of
services as described above to be provided to a fund (such as the Fund) is
much more extensive than that provided to separately managed accounts.
Given the inherent differences in the products, particularly the extensive
services to be provided to a fund, the Independent Board Members believe
such facts justify the different levels of fees.
3. PROFITABILITY OF NUVEEN
In conjunction with its review of fees at prior meetings, the Independent
Board Members have considered the profitability of Nuveen for its advisory
activities (which incorporated Nuveen's wholly-owned affiliated
sub-advisers) and its financial condition. At the Meeting or prior
meetings, the Independent Board Members reviewed the revenues and expenses
of Nuveen's advisory activities and the allocation methodology used in
preparing the profitability data.
The Independent Board Members have also considered, at the Meeting or at
prior meetings, Nuveen's profitability compared with other fund sponsors
prepared by two independent third party service providers as well as
comparisons of the revenues, expenses and profit margins of various
unaffiliated management firms with similar amounts of assets under
management prepared by Nuveen.
Nuveen Investments 101
Annual Investment Management Agreement
Approval Process (continued)
In reviewing profitability, the Independent Board Members have recognized
the subjective nature of determining profitability, which may be affected
by numerous factors, including the allocation of expenses. Further, the
Independent Board Members have recognized the difficulties in making
comparisons as the profitability of other advisers generally is not
publicly available and the profitability information that is available for
certain advisers or management firms may not be representative of the
industry and may be affected by, among other things, the adviser's
particular business mix, capital costs, types of funds managed and expense
allocations. Notwithstanding the foregoing, the Independent Board Members
reviewed Nuveen's methodology and assumptions for allocating expenses
across product lines to determine profitability. In reviewing
profitability, the Independent Board Members recognized Nuveen's
investment in its fund business. The Independent Board Members further
received the Form 8-K of Nuveen for the quarter ending September 30, 2008.
Based on its review, the Independent Board Members concluded that Nuveen's
level of profitability for its advisory activities was reasonable in light
of the services to be provided.
In evaluating the reasonableness of the compensation, the Independent
Board Members also considered any other amounts expected to be paid to NAM
as well as any indirect benefits (such as soft dollar arrangements, if
any) NAM and its affiliates are expected to receive that are directly
attributable to their management of the Fund, if any. See Section E below
for additional information on indirect benefits NAM may receive as a
result of its relationship with the Fund. Based on their review of the
overall fee arrangements of the Fund, the Independent Board Members
determined that the advisory fees and expected expenses of the Fund were
reasonable.
D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE
With respect to economies of scale, the Independent Board Members recognized the
potential benefits resulting from the costs of the Fund being spread over a
larger asset base. The Independent Board Members therefore considered whether
the Fund could be expected to benefit from any economies of scale. In
considering economies of scale, the Independent Board Members have recognized
that economies of scale are difficult to measure and predict with precision.
Notwithstanding the foregoing, one method to help ensure that shareholders share
in these benefits is to include breakpoints in the advisory fee schedule.
Accordingly, the Independent Board Members received and reviewed the schedule of
proposed advisory fees for the Fund, including the fund-level breakpoints
thereto. In this regard, given that the Fund is a closed-end fund, the
Independent Board Members recognized that although the Fund may from time to
time make additional share offerings, the growth in its assets will occur
primarily through appreciation of its investment portfolio.
In addition to fund-level advisory fee breakpoints, the Board also considered
the Fund's complex-wide fee arrangement. Pursuant to the complex-wide fee
arrangement, the fees of the funds in the Nuveen complex, including the Fund,
are reduced as the assets in the fund complex reach certain levels. In
evaluating the complex-wide fee arrangement, the Independent Board Members have
considered that the complex-wide fee
102 Nuveen Investments
arrangement seeks to provide the benefits of economies of scale to fund
shareholders when total fund complex assets increase, even if assets of a
particular fund are unchanged or have decreased. The approach reflects the
notion that some of Nuveen's costs are attributable to services provided to all
its funds in the complex and therefore all funds benefit if these costs are
spread over a larger asset base. Based on their review, the Independent Board
Members concluded that the breakpoint schedule and complex-wide fee arrangement
were acceptable and desirable in providing benefits from economies of scale to
shareholders of the Fund.
E. INDIRECT BENEFITS
In evaluating fees, the Independent Board Members also considered information
regarding potential "fall out" or ancillary benefits NAM or its affiliates may
receive as a result of its relationship with the Fund. In this regard, the
Independent Board Members considered the revenues received by affiliates of NAM
for serving as agent at Nuveen's preferred trading desk and for serving as a
co-manager in the initial public offering of new closed-end exchange traded
funds.
In addition to the above, the Independent Board Members considered whether NAM
will receive any benefits from soft dollar arrangements whereby a portion of the
commissions paid by the Fund for brokerage may be used to acquire research that
may be useful to NAM in managing the assets of the Fund and other clients. The
Independent Board Members noted that NAM does not currently have any soft dollar
arrangements; however, to the extent certain bona fide agency transactions that
occur on markets that traditionally trade on a principal basis and riskless
principal transactions are considered as generating "commissions," NAM intends
to comply with the applicable safe harbor provisions.
Based on their review, the Independent Board Members concluded that any indirect
benefits received by NAM as a result of its relationship with the Fund were
reasonable and within acceptable parameters.
F. APPROVAL
The Independent Board Members did not identify any single factor discussed
previously as all-important or controlling. The Board Members, including a
majority of the Independent Board Members, concluded that the terms of the
Advisory Agreement were fair and reasonable, that NAM's fees are reasonable in
light of the services to be provided to the Fund and that the Advisory Agreement
should be and was approved on behalf of the Fund.
Nuveen Investments 103
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
104 Nuveen Investments
per share may exceed the market price at the time of valuation, resulting in the
acquisition of fewer shares than if the dividend or distribution had been paid
in shares issued by the Fund. A pro rata portion of any applicable brokerage
commissions on open market purchases will be paid by Plan participants. These
commissions usually will be lower than those charged on individual transactions.
FLEXIBLE
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
Nuveen Investments 105
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, also known as inverse
floaters, 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.
106 Nuveen Investments
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 NAV per common 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 common shares outstanding. Fund
NAVs are calculated at the end of each business day.
o PRE-REFUNDING: Pre-refunding, also known as advanced refundings or
refinancings, is a procedure used by state and local governments to
refinance municipal bonds to lower interest expenses. The issuer sells new
bonds with a lower yield and uses the proceeds to buy U.S. Treasury
securities, the interest from which is used to make payments on the
higher-yielding bonds. Because of this collateral, pre-refunding generally
raises a bond's credit rating and thus its value.
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.
Nuveen Investments 107
Notes
108 Nuveen Investments
Other Useful Information
BOARD OF DIRECTORS/TRUSTEES
John P. Amboian
Robert P. Bremner
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Judith M. Stockdale
Carole E. Stone
Terence J. Toth
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
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, 2009, 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
("NYSE") 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.
COMMON AND PREFERRED SHARE INFORMATION
Each Fund intends to repurchase and/or redeem shares of its own common or
preferred stock in the future at such times and in such amounts as is deemed
advisable. During the period covered by this report, the Funds repurchased
and/or redeemed shares of their common and/or preferred stock as shown in the
accompanying table.
COMMON SHARES PREFERRED SHARES
FUND REPURCHASED REDEEMED
NCA -- N/A
NCB -- N/A
NCP 13,800 --
NCO 18,300 405
NQC -- --
NVC 21,200 245
NUC 22,100 312
N/A - Fund is not authorized to issue Preferred shares.
Any future repurchases and/or redemptions will be reported to shareholders in
the next annual or semi-annual report.
Nuveen Investments 109
Nuveen Investments:
Serving Investors for Generations
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions through continued
adherence to proven, longterm investing principles. Today, we offer a range of
high quality equity and fixed-income solutions designed to be integral
components of a well-diversified core portfolio.
FOCUSED ON MEETING INVESTOR NEEDS.
Nuveen Investments is a global investment management firm that seeks to help
secure the long-term goals of institutions and high net worth investors as well
as the consultants and financial advisors who serve them. We market our growing
range of specialized investment solutions under the high-quality brands of
HydePark, NWQ, Nuveen, Santa Barbara, Symphony, Tradewinds and Winslow Capital.
In total, Nuveen Investments managed approximately $145 billion of assets on
December 31, 2009.
FIND OUT HOW WE CAN HELP YOU.
To learn more about how the products and services of Nuveen Investments may be
able to help you meet your financial goals, talk to your financial advisor, or
call us at (800) 257-8787. Please read the information provided carefully before
you invest.
Investors should consider the investment objective and policies,
risk considerations, charges and expenses of any investment carefully. Where
applicable, be sure to obtain a prospectus, which contains this and other
relevant information. To obtain 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/CEF
o Share prices
o Fund details
o Daily financial news
o Investor education
o Interactive planning tools
Distributed by
Nuveen Investments, LLC
333 West Wacker Drive
Chicago, IL 60606
www.nuveen.com
EAN-A-0210D
ITEM 2. CODE OF ETHICS.
As of the end of the period covered by this report, the registrant has adopted a
code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller, or
persons performing similar functions. There were no amendments to or waivers
from the Code during the period covered by this report. The registrant has
posted the code of ethics on its website at www.nuveen.com/CEF/Info/Shareholder.
(To view the code, click on Fund Governance and then click on Code of Conduct.)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The registrant's Board of Directors or Trustees ("Board") determined that the
registrant has at least one "audit committee financial expert" (as defined in
Item 3 of Form N-CSR) serving on its Audit Committee. The registrant's audit
committee financial expert is Jack B. Evans, who is "independent" for purposes
of Item 3 of Form N-CSR.
Mr. Evans was formerly President and Chief Operating Officer of SCI Financial
Group, Inc., a full service registered broker-dealer and registered investment
adviser ("SCI"). As part of his role as President and Chief Operating Officer,
Mr. Evans actively supervised the Chief Financial Officer (the "CFO") and
actively supervised the CFO's preparation of financial statements and other
filings with various regulatory authorities. In such capacity, Mr. Evans was
actively involved in the preparation of SCI's financial statements and the
resolution of issues raised in connection therewith. Mr. Evans has also served
on the audit committee of various reporting companies. At such companies, Mr.
Evans was involved in the oversight of audits, audit plans, and the preparation
of financial statements. Mr. Evans also formerly chaired the audit committee of
the Federal Reserve Bank of Chicago.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Nuveen California Municipal Value Fund, Inc.
The following tables show the amount of fees that Ernst & Young LLP, the Fund's
auditor, billed to the Fund during the Fund's last two full fiscal years. For
engagements with Ernst & Young LLP the Audit Committee approved in advance all
audit services and non-audit services that Ernst & Young LLP provided to the
Fund, except for those non-audit services that were subject to the pre-approval
exception under Rule 2-01 of Regulation S-X (the "pre-approval exception"). The
pre-approval exception for services provided directly to the Fund waives the
pre-approval requirement for services other than audit, review or attest
services if: (A) the aggregate amount of all such services provided constitutes
no more than 5% of the total amount of revenues paid by the Fund to its
accountant during the fiscal year in which the services are provided; (B) the
Fund did not recognize the services as non-audit services at the time of the
engagement; and (C) the services are promptly brought to the Audit Committee's
attention, and the Committee (or its delegate) approves the services before the
audit is completed.
The Audit Committee has delegated certain pre-approval responsibilities to its
Chairman (or, in his absence, any other member of the Audit Committee).
SERVICES THAT THE FUND'S AUDITOR BILLED TO THE FUND
AUDIT FEES BILLED AUDIT-RELATED FEES TAX FEES ALL OTHER FEES
FISCAL YEAR ENDED TO FUND (1) BILLED TO FUND (2) BILLED TO FUND (3) BILLED TO FUND
------------------------------------------------------------------------------------------------------------------------------------
February 28, 2010 $ 15,264 $ 0 $ 0 $ 0
------------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------------------------
February 28, 2009 (4) $ 14,994 $ 0 $ 0 $ 0
------------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------------------------
(1) "Audit Fees" are the aggregate fees billed for professional services for
the audit of the Fund's annual financial statements and services provided
in connection with statutory and regulatory filings or engagements.
(2) "Audit Related Fees" are the aggregate fees billed for assurance and
related services reasonably related to the performance of the audit or
review of financial statements and are not reported under "Audit Fees".
(3) "Tax Fees" are the aggregate fees billed for professional services for tax
advice, tax compliance, and tax planning.
(4) Fund changed fiscal year from August to February starting in 2009.
SERVICES THAT THE FUND'S AUDITOR BILLED TO THE
ADVISER AND AFFILIATED FUND SERVICE PROVIDERS
The following tables show the amount of fees billed by Ernst & Young LLP to
Nuveen Asset Management ("NAM" or the "Adviser"), and any entity controlling,
controlled by or under common control with NAM that provides ongoing services to
the Fund ("Affiliated Fund Service Provider"), for engagements directly related
to the Fund's operations and financial reporting, during the Fund's last two
full fiscal years.
The tables also show the percentage of fees subject to the pre-approval
exception. The pre-approval exception for services provided to the Adviser and
any Affiliated Fund Service Provider (other than audit, review or attest
services) waives the pre-approval requirement if: (A) the aggregate amount of
all such services provided constitutes no more than 5% of the total amount of
revenues paid to Ernst & Young LLP by the Fund, the Adviser and Affiliated Fund
Service Providers during the fiscal year in which the services are provided that
would have to be pre-approved by the Audit Committee; (B) the Fund did not
recognize the services as non-audit services at the time of the engagement; and
(C) the services are promptly brought to the Audit Committee's attention, and
the Committee (or its delegate) approves the services before the Fund's audit is
completed.
FISCAL YEAR ENDED AUDIT-RELATED FEES TAX FEES BILLED TO ALL OTHER FEES
BILLED TO ADVISER AND ADVISER AND BILLED TO ADVISER
AFFILIATED FUND AFFILIATED FUND AND AFFILIATED FUND
SERVICE PROVIDERS SERVICE PROVIDERS SERVICE PROVIDERS
------------------------------------------------------------------------------------------------------------------------------------
February 28, 2010 $ 0 $ 0 $ 0
------------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------------------------
February 28, 2009 (1) $ 0 $ 0 $ 0
------------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------------------------
(1) Fund changed fiscal year from August to February starting in 2009.
NON-AUDIT SERVICES
The following table shows the amount of fees that Ernst & Young LLP billed
during the Fund's last two full fiscal years for non-audit services. The Audit
Committee is required to pre-approve non-audit services that Ernst & Young LLP
provides to the Adviser and any Affiliated Fund Services Provider, if the
engagement related directly to the Fund's operations and financial reporting
(except for those subject to the pre-approval exception described above). The
Audit Committee requested and received information from Ernst & Young LLP about
any non-audit services that Ernst & Young LLP rendered during the Fund's last
fiscal year to the Adviser and any Affiliated Fund Service Provider. The
Committee considered this information in evaluating Ernst & Young LLP's
independence.
FISCAL YEAR ENDED TOTAL NON-AUDIT FEES
BILLED TO ADVISER AND
AFFILIATED FUND SERVICE TOTAL NON-AUDIT FEES
PROVIDERS (ENGAGEMENTS BILLED TO ADVISER AND
RELATED DIRECTLY TO THE AFFILIATED FUND SERVICE
TOTAL NON-AUDIT FEES OPERATIONS AND FINANCIAL PROVIDERS (ALL OTHER
BILLED TO FUND REPORTING OF THE FUND) ENGAGEMENTS) TOTAL
------------------------------------------------------------------------------------------------------------------------------------
February 28, 2010 $ 0 $ 0 $ 0 $ 0
February 28, 2009 (1) $ 0 $ 0 $ 0 $ 0
"Non-Audit Fees billed to Fund" for both fiscal year ends represent "Tax Fees"
and "All Other Fees" billed to Fund in their respective amounts from the
previous table.
(1) Fund changed fiscal year from August to February starting in 2009.
Audit Committee Pre-Approval Policies and Procedures. Generally, the Audit
Committee must approve (i) all non-audit services to be performed for the Fund
by the Fund's independent accountants and (ii) all audit and non-audit services
to be performed by the Fund's independent accountants for the Affiliated Fund
Service Providers with respect to operations and financial reporting of the
Fund. Regarding tax and research projects conducted by the independent
accountants for the Fund and Affiliated Fund Service Providers (with respect to
operations and financial reports of the Fund) such engagements will be (i)
pre-approved by the Audit Committee if they are expected to be for amounts
greater than $10,000; (ii) reported to the Audit Committee chairman for his
verbal approval prior to engagement if they are expected to be for amounts under
$10,000 but greater than $5,000; and (iii) reported to the Audit Committee at
the next Audit Committee meeting if they are expected to be for an amount under
$5,000.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
The registrant's Board has a separately designated Audit Committee established
in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934,
as amended (15 U.S.C. 78c(a)(58)(A)). The members of the audit committee are
Robert P. Bremner, Jack B. Evans, Terence J. Toth, William J. Schneider and
David J. Kundert.
ITEM 6. SCHEDULE OF INVESTMENTS.
a) See Portfolio of Investments in Item 1.
b) Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
The registrant invests its assets primarily in municipal bonds and cash
management securities. On rare occasions the registrant may acquire, directly or
through a special purpose vehicle, equity securities of a municipal bond issuer
whose bonds the registrant already owns when such bonds have deteriorated or are
expected shortly to deteriorate significantly in credit quality. The purpose of
acquiring equity securities generally will be to acquire control of the
municipal bond issuer and to seek to prevent the credit deterioration or
facilitate the liquidation or other workout of the distressed issuer's credit
problem. In the course of exercising control of a distressed municipal issuer,
NAM may pursue the registrant's interests in a variety of ways, which may entail
negotiating and executing consents, agreements and other arrangements, and
otherwise influencing the management of the issuer. NAM does not consider such
activities proxy voting for purposes of Rule 206(4)-6 under the 1940 Act, but
nevertheless provides reports to the registrant's Board on its control
activities on a quarterly basis.
In the rare event that a municipal issuer were to issue a proxy or that the
registrant were to receive a proxy issued by a cash management security, NAM
would either engage an independent third party to determine how the proxy should
be voted or vote the proxy with the consent, or based on the instructions, of
the registrant's Board or its representative. A member of NAM's legal department
would oversee the administration of the voting, and ensure that records were
maintained in accordance with Rule 206(4)-6, reports were filed with the SEC on
Form N-PX, and the results provided to the registrant's Board and made available
to shareholders as required by applicable rules.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
THE PORTFOLIO MANAGER
The following individual has primary responsibility for the day-to-day
implementation of the registrant's investment strategies:
NAME FUND
Scott R. Romans Nuveen California Municipal Value Fund, Inc.
Other Accounts Managed. In addition to managing the registrant, the portfolio
manager is also primarily responsible for the day-to-day portfolio management of
the following accounts:
NUMBER OF
PORTFOLIO MANAGER TYPE OF ACCOUNT MANAGED ACCOUNTS ASSETS*
--------------------------------------------------------------------------------
Scott R. Romans Registered Investment Company 29 $5.54 billion
Other Pooled Investment Vehicles 0 $0
Other Accounts 6 $1.6 million
* Assets are as of February 28, 2010. None of the assets in these accounts
are subject to an advisory fee based on performance.
Compensation. Each portfolio manager's compensation consists of three basic
elements--base salary, cash bonus and long-term incentive compensation. The
compensation strategy is to annually compare overall compensation to the market
in order to create a compensation structure that is competitive and consistent
with similar financial services companies. As discussed below, several factors
are considered in determining each portfolio manager's total compensation. In
any year these factors may include, among others, the effectiveness of the
investment strategies recommended by the portfolio manager's investment team,
the investment performance of the accounts managed by the portfolio manager, and
the overall performance of Nuveen Investments, Inc. (the parent company of NAM).
Although investment performance is a factor in determining the portfolio
manager's compensation, it is not necessarily a decisive factor. The portfolio
manager's performance is evaluated in part by comparing manager's performance
against a specified investment benchmark. This fund-specific benchmark is a
customized subset (limited to bonds in each Fund's specific state and with
certain maturity parameters) of the S&P/Investortools Municipal Bond index, an
index comprised of bonds held by managed municipal bond fund customers of
Standard & Poor's Securities Pricing, Inc. that are priced daily and whose fund
holdings aggregate at least $2 million. As of February 28, 2010, the
S&P/Investortools Municipal Bond index was comprised of 54,637 securities with
an aggregate current market value of $1,176 billion.
Base salary. Each portfolio manager is paid a base salary that is set at a level
determined by NAM in accordance with its overall compensation strategy discussed
above. NAM is not under any current contractual obligation to increase a
portfolio manager's base salary.
Cash bonus. Each portfolio manager is also eligible to receive an annual cash
bonus. The level of this bonus is based upon evaluations and determinations made
by each portfolio manager's supervisors, along with reviews submitted by his
peers. These reviews and evaluations often take into account a number of
factors, including the effectiveness of the investment strategies recommended to
the NAM's investment team, the performance of the accounts for which he serves
as portfolio manager relative to any benchmarks established for those accounts,
his effectiveness in communicating investment performance to stockholders and
their representatives, and his contribution to the NAM's investment process and
to the execution of investment strategies. The cash bonus component is also
impacted by the overall performance of Nuveen Investments, Inc. in achieving its
business objectives.
Long-term incentive compensation. In connection with the acquisition of Nuveen
Investments, Inc., by a group of investors lead by Madison Dearborn Partners in
November 2007, certain employees, including portfolio managers, received profit
interests in Nuveen's parent. These profit interests entitle the holders to
participate in the appreciation in the value of Nuveen beyond the issue date and
vest over five to seven years, or earlier in the case of a liquidity event. In
addition, in July 2009, Nuveen Investments created and funded a trust, as part
of a newly-established incentive program, which purchased shares of certain
Nuveen Mutual Funds and awarded such shares, subject to vesting, to certain
employees, including portfolio managers.
Material Conflicts of Interest. Each portfolio manager's simultaneous management
of the registrant and the other accounts noted above may present actual or
apparent conflicts of interest with respect to the allocation and aggregation of
securities orders placed on behalf of the Registrant and the other account. NAM,
however, believes that such potential conflicts are mitigated by the fact that
the NAM has adopted several policies that address potential conflicts of
interest, including best execution and trade allocation policies that are
designed to ensure (1) that portfolio management is seeking the best price for
portfolio securities under the circumstances, (2) fair and equitable allocation
of investment opportunities among accounts over time and (3) compliance with
applicable regulatory requirements. All accounts are to be treated in a
non-preferential manner, such that allocations are not based upon account
performance, fee structure or preference of the portfolio manager. In addition,
NAM has adopted a Code of Conduct that sets forth policies regarding conflicts
of interest.
Beneficial Ownership of Securities. As of February 28, 2010, the portfolio
manager beneficially owned the following dollar range of equity securities
issued by the Registrant and other Nuveen Funds managed by NAM's municipal
investment team.
DOLLAR RANGE OF
EQUITY SECURITIES
DOLLAR BENEFICIALLY OWNED
RANGE OF IN THE REMAINDER OF
EQUITY NUVEEN FUNDS
SECURITIES MANAGED BY NAM'S
BENEFICIALLY MUNICIPAL
NAME OF PORTFOLIO OWNED IN INVESTMENT
MANAGER FUND FUND TEAM
-------------------------------------------------------------------------------------------------------------------
Scott R. Romans Nuveen California Municipal Value Fund, Inc. $0 $0
PORTFOLIO MANAGER BIO:
Scott R. Romans, PhD, joined Nuveen Investments in 2000 as a senior analyst in
the education sector. In 2003, he was assigned management responsibility for
several closed- and open-ended municipal bond funds most of which are state
funds covering California and other western states. He has been Vice President
of NAM since 2004, Portfolio Manager since 2003, and was, formerly, Assistant
Vice President (2003-2004) and Senior Analyst (2000-2003). Currently, he manages
investments for 30 Nuveen-sponsored investment companies. He holds an
undergraduate degree from the University of Pennsylvania and an MA and PhD from
the University of Chicago.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrant's Board implemented after the registrant
last provided disclosure in response to this item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")
(17 CFR 240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter
of the period covered by this report that has materially affected, or
is reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable
because the code is posted on registrant's website at www.nuveen.com/CEF/Info/
Shareholder and there were no amendments during the period covered by this
report. (To view the code, click on Fund Governance and then Code of Conduct.)
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT
Attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons. Not applicable.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR
270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference. Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen California Municipal Value Fund, Inc.
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By (Signature and Title) /s/ Kevin J. McCarthy
----------------------------------------------
Kevin J. McCarthy
Vice President and Secretary
Date: May 6, 2010
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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
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Gifford R. Zimmerman
Chief Administrative Officer
(principal executive officer)
Date: May 6, 2010
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By (Signature and Title) /s/ Stephen D. Foy
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Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: May 6, 2010
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