UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-5235 --------------------- Nuveen California Municipal Value Fund, Inc. ------------------------------------------------------------------------------ (Exact name of registrant as specified in charter) Nuveen Investments 333 West Wacker Drive Chicago, IL 60606 ------------------------------------------------------------------------------ (Address of principal executive offices) (Zip code) Jessica R. Droeger Nuveen Investments 333 West Wacker Drive Chicago, IL 60606 ------------------------------------------------------------------------------ (Name and address of agent for service) Registrant's telephone number, including area code: (312) 917-7700 ------------------- Date of fiscal year end: 8/31/03 ------------------ Date of reporting period: 8/31/03 ----------------- Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss. 3507. ITEM 1. REPORTS TO STOCKHOLDERS. ANNUAL REPORT August 31, 2003 Nuveen Investments Municipal Closed-End Exchange-Traded Funds CALIFORNIA NCA NCP NCO NQC NVC NUC DEPENDABLE, TAX-FREE INCOME BECAUSE IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R) Photo of: 2 people on beach. Photo of: man and woman walking on beach. Logo: NUVEEN Investments FASTER INFORMATION RECEIVE YOUR NUVEEN FUND REPORT ELECTRONICALLY By registering for electronic delivery, you will receive an e-mail as soon as your Nuveen Fund information is available. Click on the link and you will be taken directly to the report. Your Fund report can be viewed and saved on your computer. Your report will arrive faster via e-mail than by traditional mail. Registering is easy and only takes a few minutes (see instructions at right). -------------------------------------------------------------------------------- SOME COMMON CONCERNS: WILL MY E-MAIL ADDRESS BE DISTRIBUTED TO OTHER COMPANIES? No, your e-mail address is strictly confidential and will not be used for anything other than notification of shareholder information. WHAT IF I CHANGE MY MIND AND WANT TO RECEIVE INVESTOR MATERIALS THROUGH REGULAR MAIL DELIVERY AGAIN? If you decide you do not like receiving your reports electronically, it's a simple process to go back to regular mail delivery. -------------------------------------------------------------------------------- IF YOUR NUVEEN FUND DIVIDENDS AND STATEMENTS COME FROM YOUR FINANCIAL ADVISOR OR BROKERAGE ACCOUNT, FOLLOW THE STEPS OUTLINED BELOW: 1 Go to WWW.INVESTORDELIVERY.COM 2 Refer to the address sheet that accompanied this report. Enter the personal 13-CHARACTER ENROLLMENT NUMBER imprinted near your name. 3 You'll be taken to a page with several options. Select the NEW ENROLLMENT-CREATE screen. Once there, enter your e-mail address (e.g. yourID@providerID.com), and a personal, 4-digit PIN number of your choice. (Pick a number that's easy to remember.) 4 Click Submit. Confirm the information you just entered is correct, then click Submit again. 5 You should get a confirmation e-mail within 24 hours. If you do not, go back through these steps to make sure all the information is correct. 6 Use this same process if you need to change your registration information or cancel internet viewing. IF YOUR NUVEEN FUND DIVIDENDS AND STATEMENTS COME DIRECTLY TO YOU FROM NUVEEN, FOLLOW THE STEPS OUTLINED BELOW: 1 Go to WWW.NUVEEN.COM 2 Select ACCESS YOUR ACCOUNT. Select the E-REPORT ENROLLMENT section. Click on Enrollment Today. 3 You'll be taken to a screen that asks for your Social Security number and e-mail address. Fill in this information, then click Enroll. 4 You should get a confirmation e-mail within 24 hours. If you do not, go back through these steps to make sure all the information is correct. 5 Use this same process if you need to change your registration information or cancel internet viewing. Logo: NUVEEN Investments Photo of: Timothy R. Schwertfeger Chairman of the Board Sidebar text: "WHILE NO ONE KNOWS WHAT THE FUTURE WILL BRING, WE THINK A WELL-BALANCED PORTFOLIO ..... IS AN IMPORTANT COMPONENT IN ACHIEVING YOUR LONG-TERM FINANCIAL GOALS." Dear SHAREHOLDER Once again, I am pleased to report that over the most recent reporting period your California Fund continued to provide you with attractive tax-free monthly income and the opportunity for increased portfolio diversification. For more specific information about the performance of your Fund, please see the Portfolio Managers' Comments and Performance Overview sections of this report. With interest rates at historically low levels, many investors have begun to wonder whether interest rates will rise, and whether that possibility should cause them to adjust their fixed-income holdings. While no one knows what the future will bring, we think a well-balanced portfolio that is structured and carefully monitored with the help of an investment professional is an important component in achieving your long-term financial goals. A well-diversified portfolio may actually help to reduce your overall investment risk. We believe municipal bond investments like your Nuveen Fund can be important building blocks in a portfolio crafted to perform well through a variety of market conditions. I'd also like to direct your attention to the inside front cover of this report, which explains the quick and easy process to begin receiving Fund reports like this via e-mail and the internet. Thousands of Nuveen Fund shareholders already have signed-up, and they are getting their Fund information faster and more conveniently than ever. I urge you to consider joining them. Since 1898, Nuveen Investments has offered financial products and solutions that incorporate careful research, diversification, and the application of conservative risk-management principles. We are grateful that you have chosen us as a partner as you pursue your financial goals. We look forward to continuing to earn your trust in the months and years ahead. Sincerely, /s/ Timothy R. Schwertfeger Timothy R. Schwertfeger Chairman of the Board October 15, 2003 1 Nuveen California Municipal Closed-End Exchange-Traded Funds (NCA, NCP, NCO, NQC, NVC, NUC) Portfolio Managers' COMMENTS Portfolio managers Bill Fitzgerald and Scott Romans discuss economic and market conditions, key investment strategies, and the annual performance of the Funds. With 15 years of investment experience at Nuveen, Bill has managed NCP and NCO since 1991, NQC since 1992, NUC since 1993, and NCA and NVC since 1998. Scott, who has three years of investment experience at Nuveen, joined Bill in managing these California Funds in January 2003. WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE TWELVE MONTH PERIOD ENDED AUGUST 31, 2003? As has been the case for some time, we believe the two greatest influences on the general economy and the municipal market continued to be historically low interest rates and the slow pace of economic growth. In June 2003, the Federal Reserve cut the fed funds rate to 1.0%, its lowest level since 1958. Growth during the first half of 2003, as measured by the GDP, registered 2.3%, lagging the 3% pace considered by many to be indicative of recovery. At the same time, inflation remained dormant, with the 12-month advance in the core rate dropping to 1.3% in August. The slow rate of economic recovery, low interest rates, and lack of inflationary pressures created conditions that helped many municipal bonds perform well during the majority of this reporting period. However, during July 2003, stronger-than-expected economic data precipitated a spike in bond yields and a corresponding drop in bond prices that impacted results across all fixed-income markets. During the first eight months of 2003, the states and municipalities followed up the record issuance of 2002 with continued strong supply, issuing $254 billion in new bonds, up 12.5% over the same period in 2002. HOW WERE ECONOMIC AND MARKET CONDITIONS IN CALIFORNIA? Over the 12-months ended August 31, 2003, California continued to struggle with significant budget problems and political uncertainty. On July 29, 2003, nearly a month into its 2004 fiscal year, the state budget was finally approved, closing a $38 billion deficit. Due to the heavy reliance on borrowing and one-time measures to balance the fiscal 2004 budget, California is expected to face an additional $8 billion deficit in fiscal 2005. The recall election added further uncertainty to California's outlook during the reporting period. While employment and real estate values remained relatively stable in Southern California, the San Francisco area continued to be the state's weak spot, suffering from lingering effects of the technology downturn. Although some economic data provided a glimmer of hope for the state's tech-related jobs, the consensus was that any meaningful improvement in California's employment market, especially technology, was not expected until 2004. During the first eight months of 2003, municipal new issue supply in the state totaled $42 billion, up 56% over the same period in 2002. However, the delays in budget approval, the size of the deficit, and the uncertainty created by the governor 2 recall effort also led to several downgrades of California's general obligation debt over the twelve months ended August 31, 2003. In December 2002, Standard & Poor's cut the state's credit rating to A from A+, while Moody's followed suit in February 2003, lowering the rating to A2. In July 2003, Moody's and S&P again downgraded the state, to A3/BBB from A2/A, respectively. HOW DID THE FUNDS PERFORM OVER THIS REPORTING PERIOD? Individual results for these Funds, as well as for relevant benchmarks, are presented in the accompanying table. LEHMAN LIPPER TOTAL RETURN CALIFORNIA CALIFORNIA MARKET YIELD ON NAV TOTAL RETURN1 AVERAGE2 ------------------------------------------------------------------------- 1 YEAR 1 YEAR 1 YEAR TAXABLE- ENDED ENDED ENDED 8/31/03 EQUIVALENT3 8/31/03 8/31/03 8/31/03 ------------------------------------------------------------------------- NCA 5.47% 8.35% 1.73% 2.00% 1.14% ------------------------------------------------------------------------- NCP 6.69% 10.21% 2.30% 2.00% 1.14% ------------------------------------------------------------------------- NCO 6.58% 10.05% 2.73% 2.00% 1.14% ------------------------------------------------------------------------- NQC 6.53% 9.97% 1.60% 2.00% 1.14% ------------------------------------------------------------------------- NVC 6.75% 10.31% 2.24% 2.00% 1.14% ------------------------------------------------------------------------- NUC 6.79% 10.37% 0.71% 2.00% 1.14% ------------------------------------------------------------------------- Past performance is not predictive of future results. For additional information, see the individual Performance Overview for your Fund in this report. For the 12-months ended August 31, 2003, all of the Funds in this report except NUC outperformed their Lipper peer group average. In addition, NCP, NCO, and NVC also outperformed the unleveraged Lehman Brothers California Tax-Exempt Bond Index, while NCA and NQC lagged this index by a small margin. In general over this period, the performances of most of the Funds were helped by their relatively longer durations.4 As of August 31, 2003, the durations of the five leveraged Funds ranged from 10.26 to 11.33, compared with 8.91 for the Lehman California index, while the unleveraged NCA had an average duration of 6.81. During periods of declining interest rates, such as that we experienced over the majority of the 12-month period, investments with longer durations generally would have been expected to outperform those with shorter durations. However, when bond yields jumped higher in late June and July, longer durations hampered the Funds' performance for these months. Another factor in the performance of these Funds (with the exception of the unleveraged NCA) in comparison with the Lehman California index over this period was their use of leverage. While this strategy generally benefited the Funds over the 12-month period, leverage also magnified some of the price declines experienced when yields rose in June and July, negatively impacting the performance of Funds such as NQC. In addition to duration and leverage, factors such as call exposure, portfolio trading activity, and the price movement of specific sectors and holdings also had an impact on the Funds' relative performances during this period. For example, while all of these Funds held bonds backed by the 1998 master tobacco settlement agreement, NUC had invested a higher percentage of its portfolio in these tobacco-backed bonds relative to the other five Funds. The negative returns in the tobacco sector over the 12 months ended August 31, 2003, affected NUC and, to a lesser extent, NCA. In recent months, tobacco bonds have shown some recovery. Our strategy continues to be one of maintaining these holdings while regularly evaluating the situation. At the beginning of this reporting period, NUC also held $6.2 million (par value) in bonds issued for a cargo project at Los Angeles International Airport and backed by United Airlines. These bonds depreciated significantly over the past two years as the airline struggled with bankruptcy. Although we 1 The total annual returns on common share net asset value (NAV) for these Nuveen Funds are compared with the total annual return of the Lehman Brothers California Tax-Exempt Bond Index, an unleveraged, unmanaged index comprising a broad range of investment-grade California municipal bonds. Results for the Lehman index do not reflect any expenses. 2 The total returns of the Nuveen California Funds are compared with the average annualized return of the 28 funds in the Lipper California Municipal Debt Funds category. Fund and Lipper returns assume reinvestment of dividends. 3 The taxable-equivalent yield represents the yield that must be earned on a taxable investment, other than an alternative investment that generates qualified dividend income that is taxable at the maximum rate of 15%, in order to equal the yield of the Nuveen Fund on an after-tax basis. The taxable-equivalent yield is based on the Fund's market yield on the indicated date and a combined federal and state income tax rate of 34.5%. 4 Duration is a measure of a fund's NAV volatility in reaction to interest rate movements. Fund duration, also known as leverage-adjusted duration, takes into account the leveraging process for a fund and therefore is generally longer than the duration of the actual portfolio of individual bonds that make up the fund. With the exception of NCA, which is unleveraged, references to duration in this commentary are intended to indicate fund duration unless otherwise noted. 3 began liquidating NUC's position in the United bonds in April 2003 and completed the process in August 2003, the continued depreciation of these bonds over the 12-month reporting period cost the Fund approximately 10 basis points in total return performance. HOW DID THE MARKET ENVIRONMENT AFFECT THE FUNDS' DIVIDENDS AND SHARE PRICES? With short-term interest rates remaining at historically low levels, the dividend-paying capabilities of the Funds generally benefited from their use of leverage (with the exception of the unleveraged NCA). During the 12-month period ended August 31, 2003, the continued low level of short-term rates enabled us to implement two dividend increases in NVC and one increase each in NCP, NCO and NQC. Leverage also helped to support the dividend of NUC, which, as of August 2003, had paid shareholders steady or increasing dividends for 39 consecutive months. NCA, however, as an unleveraged Fund, did not experience a similar increase in income to its portfolio as long-term rates moved lower. This necessitated a dividend cut in this Fund in March 2003. Although the share prices and net asset values of these Funds generally performed well during much of this 12-month reporting period, increased volatility in the fixed-income markets during the summer of 2003 as well as continued budgetary and political turmoil in California led to an overall weakening of prices. While we began to see some recovery in August as municipal supply thinned somewhat, the Funds' share prices and NAVs finished this reporting period lower than they had been at the beginning. As of August 31, 2003, NCA, NCP, NCO, NQC, and NVC continued to trade at discounts to their common share NAVs, while NUC had moved from trading at a premium to a discount (see charts on individual Performance Overview pages). WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THE YEAR ENDED AUGUST 31, 2003? Over this 12-month period, we continued to place strong emphasis on diversifying the portfolios, improving call protection, and enhancing dividend-paying capabilities. One of our key strategies focused on managing the Funds' durations in order to enhance our ability to mitigate interest rate risk and produce potentially more consistent returns over time. Interest rate risk is the risk that the value of a Fund's portfolio will decline when market interest rates rise. The longer the duration of a Fund's portfolio, the greater its interest rate risk. Over the course of the reporting period, we concentrated on finding value in the intermediate part of the yield curve. In many cases, bonds in this part of the curve offered yields similar to those of longer-term bonds but, in our opinion, had less inherent interest rate risk. Over the six months ended August 31, 2003, another key strategy centered on selling or purchasing California general obligation bonds (GOs) to take advantage of general market moves. In early spring 2003, the yield differential between new California GOs and national AAA credits with similar maturities had narrowed to 35-40 basis points. We believed this made California GOs relatively expensive and we largely moved the Funds out of positions in California GOs. By June 2003, as the state's budget process stalled and the recall movement gathered strength, the yield differential had widened, and we began buying California GOs. Following the approval of the fiscal 2004 budget at the end of July 2003, California GOs rallied on a relative basis. As the yield spread with national bonds 4 once again narrowed, we began to sell some of these GO positions at what we believed were attractive prices. WHAT IS YOUR OUTLOOK FOR THE BOND CALLS FOR THESE FUNDS? Through 2004, potential call exposure ranges from 8% in NCA to 17% in NUC. During this reporting period, we worked to mitigate the call risk of all of these Funds, especially NCP and NUC. As of August 31, 2003, the potential call exposures of NCP and NUC through 2003 and 2004 were down from a year ago. The number of actual calls in these Funds will depend largely on market interest rates in coming months. In general, we believe that these Nuveen Funds can continue to serve as attractive sources of tax-free income, while simultaneously offering the potential for considerable portfolio diversification. In our opinion, these Funds represent a quality component of a well-balanced core investment portfolio that can continue to benefit shareholders over time. 5 Nuveen California Municipal Value Fund, Inc. Performance OVERVIEW As of August 31, 2003 NCA Pie chart: CREDIT QUALITY AAA/U.S. Guaranteed 54% A 13% BBB 21% NR 11% BB or lower 1% PORTFOLIO STATISTICS -------------------------------------------------- Share Price $9.10 -------------------------------------------------- Common Share Net Asset Value $9.93 -------------------------------------------------- Market Yield 5.47% -------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 7.60% -------------------------------------------------- Taxable-Equivalent Yield (Federal and State Income Tax Rate)1 8.35% -------------------------------------------------- Net Assets Applicable to Common Shares ($000) $250,749 -------------------------------------------------- Average Effective Maturity (Years) 18.58 -------------------------------------------------- Average Duration 6.81 -------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 10/07/87) -------------------------------------------------- ON SHARE PRICE ON NAV -------------------------------------------------- 1-Year -3.55% 1.73% -------------------------------------------------- 5-Year 4.02% 4.41% -------------------------------------------------- 10-Year 3.41% 5.17% -------------------------------------------------- TOP FIVE SECTORS (as a % of total investments) -------------------------------------------------- Tax Obligation/Limited 26% -------------------------------------------------- U.S. Guaranteed 17% -------------------------------------------------- Tax Obligation/General 13% -------------------------------------------------- Healthcare 10% -------------------------------------------------- Housing/Multifamily 7% -------------------------------------------------- Bar chart: 2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Sep 0.043 Oct 0.043 Nov 0.043 Dec 0.043 Jan 0.043 Feb 0.043 Mar 0.0415 Apr 0.0415 May 0.0415 Jun 0.0415 Jul 0.0415 Aug 0.0415 Line chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 9/1/02 10.16 10.12 10.03 10.39 10.26 10 9.84 9.69 9.63 9.92 9.57 9.61 9.71 9.82 9.59 9.5 9.52 9.53 9.4 9.5 9.53 9.57 9.9 9.79 9.94 9.9 10 9.7 9.55 9.89 9.62 9.6 9.69 9.5 9.58 9.78 9.92 9.98 10.12 10.02 10.03 10.01 9.83 9.59 8.96 9.2 9.22 9.1 8/31/03 9.1 1 Taxable-equivalent yield represents the yield on a taxable investment necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is calculated using the current market yield and a federal income tax rate of 28%. The rate shown for federal and state highlights the added value of owning shares that are also exempt from state income taxes. It is based on a combined federal and state income tax rate of 34.5%. 2 The Fund also paid shareholders capital gains and net ordinary income distributions in December 2002 of $0.0122 per share. 6 Nuveen California Performance Plus Municipal Fund, Inc. Performance OVERVIEW As of August 31, 2003 NCP Pie chart: CREDIT QUALITY AAA/U.S. Guaranteed 66% AA 10% A 9% BBB 13% NR 2% PORTFOLIO STATISTICS -------------------------------------------------- Share Price $13.90 -------------------------------------------------- Common Share Net Asset Value $14.76 -------------------------------------------------- Market Yield 6.69% -------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 9.29% -------------------------------------------------- Taxable-Equivalent Yield (Federal and State Income Tax Rate)1 10.21% -------------------------------------------------- Net Assets Applicable to Common Shares ($000) $191,409 -------------------------------------------------- Average Effective Maturity (Years) 17.42 -------------------------------------------------- Leverage-Adjusted Duration 10.26 -------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 11/15/89) -------------------------------------------------- ON SHARE PRICE ON NAV -------------------------------------------------- 1-Year -1.30% 2.30% -------------------------------------------------- 5-Year 1.14% 5.00% -------------------------------------------------- 10-Year 4.21% 5.71% -------------------------------------------------- TOP FIVE SECTORS (as a % of total investments) -------------------------------------------------- Transportation 22% -------------------------------------------------- Tax Obligation/Limited 18% -------------------------------------------------- Tax Obligation/General 15% -------------------------------------------------- Utilities 13% -------------------------------------------------- Water and Sewer 9% -------------------------------------------------- Bar chart: 2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Sep 0.0745 Oct 0.0745 Nov 0.0745 Dec 0.0745 Jan 0.0745 Feb 0.0745 Mar 0.0775 Apr 0.0775 May 0.0775 Jun 0.0775 Jul 0.0775 Aug 0.0775 Line chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 9/1/02 15.08 14.86 15.12 15.23 15.12 14.8 14.15 14.37 14.28 14.5 14.55 14 13.96 14.38 14.15 14.03 14.25 14.28 14.27 14.01 14.03 14.17 14.34 14.35 14.3 14.35 14.4 14.39 14.15 14.56 14.61 14.59 14.74 14.7 14.8 14.84 15.31 15.41 15.33 15.15 15.2 15.22 15.15 14.38 13.75 14.19 13.97 14.01 8/31/03 13.9 1 Taxable-equivalent yield represents the yield on a taxable investment necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is calculated using the current market yield and a federal income tax rate of 28%. The rate shown for federal and state highlights the added value of owning shares that are also exempt from state income taxes. It is based on a combined federal and state income tax rate of 34.5%. 2 The Fund also paid shareholders a net ordinary income distribution in December 2002 of $0.0081 per share. 7 Nuveen California Municipal Market Opportunity Fund, Inc. Performance OVERVIEW As of August 31, 2003 NCO Pie chart: CREDIT QUALITY AAA/U.S. GUARANTEED 59% AA 15% A 11% BBB 10% NR 3% BB OR LOWER 2% PORTFOLIO STATISTICS -------------------------------------------------- Share Price $13.95 -------------------------------------------------- Common Share Net Asset Value $14.77 -------------------------------------------------- Market Yield 6.58% -------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 9.14% -------------------------------------------------- Taxable-Equivalent Yield (Federal and State Income Tax Rate)1 10.05% -------------------------------------------------- Net Assets Applicable to Common Shares ($000) $120,437 -------------------------------------------------- Average Effective Maturity (Years) 18.89 -------------------------------------------------- Leverage-Adjusted Duration 11.00 -------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 5/17/90) -------------------------------------------------- ON SHARE PRICE ON NAV -------------------------------------------------- 1-Year -2.45% 2.73% -------------------------------------------------- 5-Year 1.77% 4.55% -------------------------------------------------- 10-Year 4.03% 5.58% -------------------------------------------------- TOP FIVE SECTORS (as a % of total investments) -------------------------------------------------- Transportation 19% -------------------------------------------------- Tax Obligation/Limited 19% -------------------------------------------------- Tax Obligation/General 17% -------------------------------------------------- Utilities 13% -------------------------------------------------- Water and Sewer 12% -------------------------------------------------- Bar chart: 2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Sep 0.0755 Oct 0.0755 Nov 0.0755 Dec 0.0755 Jan 0.0755 Feb 0.0755 Mar 0.0755 Apr 0.0755 May 0.0755 Jun 0.0765 Jul 0.0765 Aug 0.0765 Line chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 9/1/02 15.4 15.25 15.19 15.44 15.45 15.01 14.6 14.44 14.6 14.7 14.65 14.37 14.24 14.44 14.35 14.3 14.45 14.46 14.3 14.08 14.32 14.37 14.6 14.34 14.33 14.26 14.35 14.4 14.09 14.38 14.46 14.43 14.54 14.53 14.66 14.88 15.44 15.6 15.42 15.25 15.45 15.5 15.27 14.47 13.9 14.47 14.07 13.98 8/31/03 13.95 1 Taxable-equivalent yield represents the yield on a taxable investment necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is calculated using the current market yield and a federal income tax rate of 28%. The rate shown for federal and state highlights the added value of owning shares that are also exempt from state income taxes. It is based on a combined federal and state income tax rate of 34.5%. 2 The Fund also paid shareholders a net ordinary income distribution in December 2002 of $0.0049 per share. 8 Nuveen California Investment Quality Municipal Fund, Inc. Performance OVERVIEW As of August 31, 2003 NQC Pie chart: CREDIT QUALITY AAA/U.S. Guaranteed 66% AA 10% A 12% BBB 9% NR 1% BB or lower 2% PORTFOLIO STATISTICS -------------------------------------------------- Share Price $14.61 -------------------------------------------------- Common Share Net Asset Value $15.09 -------------------------------------------------- Market Yield 6.53% -------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 9.07% -------------------------------------------------- Taxable-Equivalent Yield (Federal and State Income Tax Rate)1 9.97% -------------------------------------------------- Net Assets Applicable to Common Shares ($000) $204,974 -------------------------------------------------- Average Effective Maturity (Years) 18.57 -------------------------------------------------- Leverage-Adjusted Duration 10.78 -------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 11/20/90) -------------------------------------------------- ON SHARE PRICE ON NAV -------------------------------------------------- 1-Year 0.29% 1.60% -------------------------------------------------- 5-Year 3.27% 5.11% -------------------------------------------------- 10-Year 4.89% 5.71% -------------------------------------------------- TOP FIVE SECTORS (as a % of total investments) -------------------------------------------------- Tax Obligation/Limited 25% -------------------------------------------------- Transportation 22% -------------------------------------------------- Tax Obligation/General 15% -------------------------------------------------- U.S. Guaranteed 8% -------------------------------------------------- Utilities 7% -------------------------------------------------- Bar chart: 2002-2003 Monthly Tax-Free Dividends Per Share2 Sep 0.0765 Oct 0.0765 Nov 0.0765 Dec 0.0765 Jan 0.0765 Feb 0.0765 Mar 0.0795 Apr 0.0795 May 0.0795 Jun 0.0795 Jul 0.0795 Aug 0.0795 Line chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 9/1/02 15.51 15.57 15.75 15.85 15.83 15.71 14.97 14.95 15.14 14.94 14.88 14.81 14.74 15 15 14.61 14.93 14.92 14.84 14.57 14.5 14.55 14.65 14.5 14.54 14.6 14.78 14.87 14.72 14.85 14.87 14.93 15 15.06 15.26 15.35 15.68 15.85 15.83 15.88 15.74 15.6 15.48 14.65 14.45 14.62 14.27 14.45 8/31/03 14.61 1 Taxable-equivalent yield represents the yield on a taxable investment necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is calculated using the current market yield and a federal income tax rate of 28%. The rate shown for federal and state highlights the added value of owning shares that are also exempt from state income taxes. It is based on a combined federal and state income tax rate of 34.5%. 2 The Fund also paid shareholders a capital gains distribution in December 2002 of $0.0186 per share. 9 Nuveen California Select Quality Municipal Fund, Inc. Performance OVERVIEW As of August 31, 2003 NVC Pie chart: CREDIT QUALITY AAA/U.S. Guaranteed 65% AA 4% A 17% BBB 10% NR 2% BB or lower 2% PORTFOLIO STATISTICS -------------------------------------------------- Share Price $14.14 -------------------------------------------------- Common Share Net Asset Value $14.93 -------------------------------------------------- Market Yield 6.75% -------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 9.38% -------------------------------------------------- Taxable-Equivalent Yield (Federal and State Income Tax Rate)1 10.31% -------------------------------------------------- Net Assets Applicable to Common Shares ($000) $344,892 -------------------------------------------------- Average Effective Maturity (Years) 19.46 -------------------------------------------------- Leverage-Adjusted Duration 11.33 -------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 5/22/91) -------------------------------------------------- ON SHARE PRICE ON NAV -------------------------------------------------- 1-Year -2.78% 2.24% -------------------------------------------------- 5-Year 3.07% 5.22% -------------------------------------------------- 10-Year 5.01% 5.83% -------------------------------------------------- TOP FIVE SECTORS (as a % of total investments) -------------------------------------------------- Tax Obligation/Limited 18% -------------------------------------------------- Tax Obligation/General 17% -------------------------------------------------- Transportation 13% -------------------------------------------------- Utilities 12% -------------------------------------------------- Healthcare 11% -------------------------------------------------- Bar chart: 2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Sep 0.077 Oct 0.077 Nov 0.077 Dec 0.078 Jan 0.078 Feb 0.078 Mar 0.0795 Apr 0.0795 May 0.0795 Jun 0.0795 Jul 0.0795 Aug 0.0795 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 9/1/02 15.46 15.38 15.48 15.57 15.46 15.42 14.55 14.47 14.81 14.75 14.83 14.3 14.32 14.82 14.55 14.55 14.57 14.85 14.6 14.39 14.35 14.45 14.7 14.53 14.69 14.77 14.98 14.95 14.59 14.61 14.86 14.8 14.79 14.91 15.01 15.14 15.55 15.7 15.74 15.63 15.65 15.64 15.53 14.82 13.87 14.38 14.18 14 8/31/03 14.14 1 Taxable-equivalent yield represents the yield on a taxable investment necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is calculated using the current market yield and a federal income tax rate of 28%. The rate shown for federal and state highlights the added value of owning shares that are also exempt from state income taxes. It is based on a combined federal and state income tax rate of 34.5%. 2 The Fund also paid shareholders a capital gains distribution in December 2002 of $0.0148 per share. 10 Nuveen California Quality Income Municipal Fund, Inc. Performance OVERVIEW As of August 31, 2003 NUC Pie chart: CREDIT QUALITY AAA/U.S. Guaranteed 63% AA 4% A 19% BBB 8% NR 2% BB or lower 4% PORTFOLIO STATISTICS -------------------------------------------------- Share Price $14.67 -------------------------------------------------- Common Share Net Asset Value $14.85 -------------------------------------------------- Market Yield 6.79% -------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 9.43% -------------------------------------------------- Taxable-Equivalent Yield (Federal and State Income Tax Rate)1 10.37% -------------------------------------------------- Net Assets Applicable to Common Shares ($000) $326,280 -------------------------------------------------- Average Effective Maturity (Years) 18.79 -------------------------------------------------- Leverage-Adjusted Duration 11.24 -------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 11/20/91) -------------------------------------------------- ON SHARE PRICE ON NAV -------------------------------------------------- 1-Year -2.38% 0.71% -------------------------------------------------- 5-Year 3.04% 4.68% -------------------------------------------------- 10-Year 5.70% 5.92% -------------------------------------------------- TOP FIVE SECTORS (as a % of total investments) -------------------------------------------------- Tax Obligation/Limited 24% -------------------------------------------------- Tax Obligation/General 15% -------------------------------------------------- U.S. Guaranteed 14% -------------------------------------------------- Education and Civic Organizations 13% -------------------------------------------------- Utilities 10% -------------------------------------------------- Bar chart: 2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Sep 0.083 Oct 0.083 Nov 0.083 Dec 0.083 Jan 0.083 Feb 0.083 Mar 0.083 Apr 0.083 May 0.083 Jun 0.083 Jul 0.083 Aug 0.083 Line chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 9/1/02 16.25 16.34 16.33 16.51 16.75 16.4 15.71 15.28 15.66 15.79 15.6 15.29 15.35 15.6 15.51 15.6 15.65 15.86 15.42 15.22 15.2 15.18 15.42 15.4 15.4 15.36 15.47 15.27 15.14 15.49 15.29 15.25 15.26 15.27 15.49 15.55 15.97 16.44 16.62 16.4 16.04 16.04 15.75 15.34 14.54 15.05 14.54 14.73 8/31/03 14.67 1 Taxable-equivalent yield represents the yield on a taxable investment necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is calculated using the current market yield and a federal income tax rate of 28%. The rate shown for federal and state highlights the added value of owning shares that are also exempt from state income taxes. It is based on a combined federal and state income tax rate of 34.5%. 2 The Fund also paid shareholders a capital gains and net ordinary income distribution in December 2002 of $0.1192 per share. 11 Report of INDEPENDENT AUDITORS THE BOARD OF DIRECTORS AND SHAREHOLDERS NUVEEN CALIFORNIA MUNICIPAL VALUE FUND, INC. NUVEEN CALIFORNIA PERFORMANCE PLUS MUNICIPAL FUND, INC. NUVEEN CALIFORNIA MUNICIPAL MARKET OPPORTUNITY FUND, INC. NUVEEN CALIFORNIA INVESTMENT QUALITY MUNICIPAL FUND, INC. NUVEEN CALIFORNIA SELECT QUALITY MUNICIPAL FUND, INC. NUVEEN CALIFORNIA QUALITY INCOME MUNICIPAL FUND, INC. We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Nuveen California Municipal Value Fund, Inc., Nuveen California Performance Plus Municipal Fund, Inc., Nuveen California Municipal Market Opportunity Fund, Inc., Nuveen California Investment Quality Municipal Fund, Inc., Nuveen California Select Quality Municipal Fund, Inc. and Nuveen California Quality Income Municipal Fund, Inc. as of August 31, 2003, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the 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. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights. Our procedures included confirmation of investments owned as of August 31, 2003, by correspondence with the custodian and brokers or other appropriate auditing procedures where replies from brokers were not received. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial positions of Nuveen California Municipal Value Fund, Inc., Nuveen California Performance Plus Municipal Fund, Inc., Nuveen California Municipal Market Opportunity Fund, Inc., Nuveen California Investment Quality Municipal Fund, Inc., Nuveen California Select Quality Municipal Fund, Inc. and Nuveen California Quality Income Municipal Fund, Inc. at August 31, 2003, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States. Ernst & Young LLP Chicago, Illinois October 10, 2003 12 Nuveen California Municipal Value Fund, Inc. (NCA) Portfolio of INVESTMENTS August 31, 2003 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 3.0% $ 7,400 California County Tobacco Securitization Agency, Tobacco Settlement 6/12 at 100.00 Baa2 $ 5,411,324 Asset-Backed Bonds, Sonoma County Tobacco Funding Corporation, Series 2002B, 5.500%, 6/01/30 2,500 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB 2,021,150 Tobacco Settlement Asset-Backed Bonds, Series 2003A-1, 6.250%, 6/01/33 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 1.6% 1,000 California Educational Facilities Authority, Revenue Bonds, 6/11 at 101.00 AAA 1,015,770 Stanford University, Series 2001Q, 5.250%, 12/01/32 1,500 California Statewide Community Development Authority, 12/06 at 105.00 N/R 1,489,305 Certificates of Participation, San Diego Space and Science Foundation, Series 1996, 7.500%, 12/01/26 1,500 California Statewide Community Development Authority, Student 8/12 at 100.00 A 1,516,260 Housing Revenue Bonds, EAH - Irvine East Campus Apartments, LLC Project, Series 2002A, 5.500%, 8/01/22 - ACA Insured ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 9.7% 1,000 Arcadia, California, Hospital Revenue Bonds, Methodist Hospital 11/03 at 101.00 BBB+ 1,021,170 of Southern California, Series 1992, 6.500%, 11/15/12 12,000 California Health Facilities Financing Authority, Revenue Bonds, 12/09 at 101.00 A3 12,629,280 Cedars-Sinai Medical Center, Series 1999A, 6.125%, 12/01/30 4,000 California Statewide Community Development Authority, Revenue No Opt. Call AAA 3,968,440 Refunding Bonds, Sherman Oaks Project, Series 1998A, 5.000%, 8/01/22 - AMBAC Insured 5,000 Central California Joint Powers Health Financing Authority, 2/10 at 101.00 BBB 5,057,300 Certificates of Participation, Community Hospitals of Central California Obligated Group Project, Series 2000, 6.000%, 2/01/30 1,440 Stockton, California, Health Facility Revenue Bonds, Dameron 12/07 at 102.00 BBB+ 1,542,859 Hospital Association, Series 1997A, 5.300%, 12/01/08 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 6.9% 9,100 ABAG Finance Authority for Nonprofit Corporations, California, No Opt. Call BBB- 9,620,702 Multifamily Housing Revenue Refunding Bonds, United Dominion/2000 Post Apartments, 2000 Series B, 6.400%, 8/15/30 (Alternative Minimum Tax) (Mandatory put 8/15/08) 2,620 California Statewide Community Development Authority, 7/09 at 102.00 N/R 2,493,218 Multifamily Housing Revenue Bonds, Harbor City Lights Project, Series 1999Y, 6.650%, 7/01/39 (Alternative Minimum Tax) 5,000 California Statewide Community Development Authority, No Opt. Call BBB+ 5,291,950 Multifamily Housing Refunding Bonds, Archstone Pelican Point Apartments, Archstone Communities Trust, Series 1999H, 5.300%, 6/01/29 (Mandatory put 6/01/08) ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 0.6% 160 California Rural Home Mortgage Finance Authority, Single No Opt. Call Aaa 170,755 Family Mortgage Revenue Bonds, Mortgage-Backed Securities Program, Series 1993A-2, 7.950%, 12/01/24 (Alternative Minimum Tax) 1,285 California Rural Home Mortgage Finance Authority, Single No Opt. Call AAA 1,357,127 Family Mortgage Revenue Bonds, Mortgage-Backed Securities Program, Series 1997D, 6.700%, 5/01/29 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 4.1% 2,720 ABAG Finance Authority for Non-Profit Corporations, California, 10/07 at 102.00 BB+ 2,550,816 Certificates of Participation, American Baptist Homes of the West Facilities Project, Series 1997A, 5.750%, 10/01/17 5,945 California Statewide Communities Development Authority, 4/09 at 101.00 BBB- 5,835,196 Certificates of Participation, The Internext Group, 5.375%, 4/01/17 2,000 Riverside County Public Financing Authority, California, 5/09 at 101.00 BBB- 2,002,020 Certificates of Participation, Air Force Village West, Series 1999, 5.750%, 5/15/19 13 Nuveen California Municipal Value Fund, Inc. (NCA) (continued) Portfolio of INVESTMENTS August 31, 2003 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 12.1% $ 7,500 State of California, Various Purpose General Obligation Bonds, 3/10 at 101.00 AAA $ 7,898,700 5.750%, 3/01/27 - MBIA Insured California State, General Obligation Refunding Bonds, Series 2002: 2,500 5.250%, 2/01/30 2/12 at 100.00 A3 2,442,275 2,500 5.250%, 4/01/32 4/12 at 100.00 A3 2,436,675 2,500 California State, General Obligation Bonds, Series 2003, 8/13 at 100.00 A3 2,341,100 5.000%, 2/01/33 3,200 Los Angeles Unified School District, Los Angeles County, 7/13 at 100.00 AAA 3,218,336 California, General Obligation Bonds, Series 2003A, 5.000%, 7/01/22 - FSA Insured 1,845 Oakland Unified School District, Alameda County, California, 8/08 at 101.00 AAA 1,862,730 General Obligation Bonds, Series 2001, 5.125%, 8/01/21 - FSA Insured 1,970 Pleasant Valley School District, Ventura County, California, No Opt. Call AAA 2,218,890 General Obligation Refunding Bonds, Series 2002A, 5.850%, 2/01/23 - MBIA Insured 1,500 San Ramon Valley Unified School District, Contra Costa 8/13 at 100.00 AAA 1,502,850 County, California, General Obligation Bonds, Series 2003, 5.000%, 8/01/23 - FSA Insured 2,200 Santa Maria Joint Union High School District, Santa Barbara No Opt. Call Aaa 2,417,866 and San Luis Obispo Counties, California, General Obligation Bonds, Series 2003B, 5.625%, 8/01/24 - FSA Insured 2,325 Temecula Valley Unified School District, Riverside County, 9/06 at 102.00 AAA 2,598,746 California, General Obligation Bonds, Series 1990F, 6.000%, 9/01/20 - FSA Insured 1,460 West Contra Costa Unified School District, Contra Costa County, 8/11 at 101.00 AAA 1,485,711 California, General Obligation Bonds, Series 2003B, 5.000%, 8/01/20 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 25.3% 9,000 California State Public Works Board, Lease Revenue Bonds, 1/06 at 100.00 AAA 9,241,200 Department of Corrections, California Substance Abuse Treatment Facility and State Prison - Corcoran II, Series 1996A, 5.250%, 1/01/21 - AMBAC Insured 4,000 California State Public Works Board, Lease Revenue Bonds, 11/09 at 101.00 AAA 4,214,040 Department of Health Services, Richmond Laboratory Project, Series 1999A, 5.750%, 11/01/24 - MBIA Insured 6,000 Capistrano Unified School District, Ladera, California, 9/09 at 102.00 N/R 5,838,300 Special Tax Bonds, Community Facilities District 98-2, Series 1999, 5.750%, 9/01/29 2,000 Cathedral City Public Financing Authority, California, 8/12 at 102.00 AAA 1,958,860 Tax Allocation Bonds, Merged Projects Area, Series 2002A, 5.000%, 8/01/33 - MBIA Insured 3,025 Chino Unified School District, California, Certificates of 9/05 at 102.00 AAA 3,305,962 Participation, Master Lease Program, Series 1995, 6.000%, 9/01/20 - FSA Insured 2,800 California Commerce Community Development Commission, 8/07 at 102.00 N/R 2,822,708 Subordinate Lien Tax Allocation Refunding Bonds, Redevelopment Project 1, Series 1997B, 6.000%, 8/01/21 2,000 Duarte Redevelopment Agency, California, Tax Allocation 9/07 at 102.00 N/R 2,149,500 Refunding Bonds, Amended Davis Addition Project Area, Series 1997A, 6.700%, 9/01/14 4,685 City of Milpitas, Santa Clara County, California, Limited 9/03 at 103.00 N/R 4,835,435 Obligation Improvement Bonds, Local Improvement District No. 20, 1998 Series A, 5.650%, 9/02/13 420 Oakland Redevelopment Agency, California, Subordinate 3/13 at 100.00 AAA 454,049 Lien Tax Allocation Bonds, Central District Redevelopment Project, Series 2003, 5.500%, 9/01/18 - FGIC Insured 8,000 Palmdale Elementary School District, Los Angeles County, 8/09 at 101.00 AAA 8,639,440 California, Special Tax Bonds, Community Facilities District 90-1, Series 1999, 5.800%, 8/01/29 - FSA Insured 3,300 Puerto Rico Highway and Transportation Authority, Highway 7/12 at 100.00 A 3,327,918 Revenue Bonds, Series 2002D, 5.375%, 7/01/36 490 Riverside County, California, Subordinate Lien Mobile Home 10/03 at 100.00 N/R 433,077 Park Revenue Bonds, Bravo Mobile Home Park Project, Series 1999B, 6.500%, 3/20/29 1,440 San Dimas Housing Authority, California, Mobile Home Park Revenue 7/08 at 102.00 N/R 1,345,766 Bonds, Charter Oak Mobile Home Estates Acquisition Project, Series 1998A, 5.700%, 7/01/28 3,000 San Jose Redevelopment Agency, California, Tax Allocation Bonds, 2/04 at 102.00 AAA 3,014,820 Merged Area Redevelopment Project, Series 1993, 5.000%, 8/01/20 - MBIA Insured 2,750 San Jose Financing Authority, California, Lease Revenue Refunding 9/11 at 100.00 AAA 2,794,412 Bonds, Convention Center Project, Series 2001F, 5.000%, 9/01/20 - MBIA Insured 14 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 1,700 Shafter Joint Powers Financing Authority, California, Lease 1/07 at 101.00 A3 $ 1,808,375 Revenue Bonds, Community Correctional Facility Acquisition Project, Series 1997A, 5.950%, 1/01/11 1,000 Stockton, California, Revenue Bonds, Community Facilities 8/05 at 102.00 N/R 1,054,330 District 90-2, Brookside Estates, Series 1997A, 5.850%, 8/01/09 3,000 Virgin Islands Public Finance Authority, Gross Receipts Tax Loan 10/10 at 101.00 BBB- 3,295,260 Note, Series 1999A, 6.500%, 10/01/24 2,570 Vista Joint Powers Financing Authority, California, Special Tax 9/05 at 102.00 N/R 2,593,207 Lease Revenue Refunding Bonds, Community Facilities District 90-2, Series 1997A, 5.875%, 9/01/20 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 5.3% 5,500 Foothill-Eastern Transportation Corridor Agency, California, Toll 1/14 at 101.00 BBB- 3,798,135 Road Refunding Revenue Bonds, Series 1999, 0.000%, 1/15/27 1,250 Fresno, California, Airport Revenue Bonds, Series 2000A, 7/10 at 101.00 AAA 1,301,788 5.500%, 7/01/30 - FSA Insured 3,000 Port of Oakland, California, Revenue Bonds, Series 1997G, 11/07 at 102.00 AAA 3,035,850 5.375%, 11/01/25 (Alternative Minimum Tax) - MBIA Insured 5,000 San Francisco City and County Airports Commission, California, 5/06 at 102.00 AAA 5,159,700 Revenue Bonds, San Francisco International Airport, Series 2, Issue 10A, 5.625%, 5/01/21 (Alternative Minimum Tax) - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 17.7% 15 Azusa Public Financing Authority, California, Revenue Bonds, 9/03 at 102.00 AAA 15,332 Azusa Water System Acquisition Project, Series 1993A, 5.000%, 7/01/23 (Pre-refunded to 9/18/03) - FGIC Insured 3,115 California Educational Facilities Authority, Revenue Bonds, Pooled 6/10 at 101.00 Baa3*** 3,723,266 College and University Projects, Series 2000C, 6.750%, 6/01/30 970 Chino Unified School District, California, Certificates of 9/05 at 102.00 AAA 1,078,407 Participation, Master Lease Program, Series 1995, 6.000%, 9/01/20 (Pre-refunded to 9/01/05) - FSA Insured 2,065 Contra Costa County, California, GNMA Mortgage-Backed No Opt. Call AAA 2,832,602 Securities Program, Home Mortgage Revenue Bonds, Series 1988, 8.250%, 6/01/21 (Alternative Minimum Tax) 2,500 Los Angeles Community Redevelopment Agency, California, 1/04 at 100.00 BBB*** 2,548,250 Tax Allocation Refunding Bonds, Central Business District Redevelopment Project, Series 1987G, 6.750%, 7/01/10 5,000 Merced Irrigation District, California, Subordinated Revenue 3/08 at 102.00 AAA 6,035,600 Certificates of Participation, Electric System Project, Series 2000, 7.450%, 3/01/18 (Pre-refunded to 3/01/08) 2,000 Modesto Irrigation District, California, Domestic Water Revenue 9/05 at 102.00 AAA 2,213,660 Bonds, Series 1995C, 5.750%, 9/01/22 (Pre-refunded to 9/01/05) - AMBAC Insured 8,565 Palmdale, California, GNMA Mortgage-Backed Securities No Opt. Call AAA 4,290,209 Program, Single Family Mortgage Revenue Bonds, Series 1988A, 0.000%, 3/01/17 5,190 Sacramento County Sanitation District Financing Authority, 12/18 at 100.00 Aaa 5,217,248 California, Revenue Bonds, Series 1993, 4.750%, 12/01/23 (Pre-refunded to 12/01/18) 20,415 San Bernardino County, California, Single Family Mortgage No Opt. Call AAA 7,732,794 Revenue Bonds, GNMA Mortgage-Backed Securities, Series 1988A, 0.000%, 9/01/21 (Alternative Minimum Tax) 5,925 San Francisco City and County Airports Commission, 5/05 at 101.00 AAA 6,438,935 California, Revenue Bonds, San Francisco International Airport, Series 2, Issue 11, 6.200%, 5/01/19 (Alternative Minimum Tax) (Pre-refunded to 5/01/05) - FGIC Insured 2,220 South Placer Wastewater Authority, California, Wastewater 11/10 at 101.00 AAA 2,256,319 Revenue Bonds, Series 2000A, 5.000%, 11/01/20 (Pre-refunded to 11/01/10) - FGIC Insured 15 Nuveen California Municipal Value Fund, Inc. (NCA) (continued) Portfolio of INVESTMENTS August 31, 2003 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 5.6% $ 4,500 California Department of Water Resources, Power Supply 5/12 at 101.00 A3 $ 4,544,100 Revenue Bonds, Series 2002A, 5.125%, 5/01/18 3,000 California Statewide Community Development Authority, Refunding 12/04 at 102.00 N/R 2,454,810 Certificates of Participation, Rio Bravo Fresno Project, Series 1999A, 6.300%, 12/01/18 3,300 Merced Irrigation District, California, Revenue Refunding Bonds, 9/05 at 102.00 Baa3 3,458,169 Electric System Project, Series 2001, 6.850%, 9/01/36 3,500 Puerto Rico Industrial, Tourist, Educational, Medical and 6/10 at 101.00 Baa2 3,606,995 Environmental Control Facilities Financing Authority, Cogeneration Facility Revenue Bonds, 2000 Series A, 6.625%, 6/01/26 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 4.6% 5,000 Castaic Lake Water Agency, California, Revenue Refunding 8/04 at 102.00 AAA 5,300,750 Certificates of Participation, Water System Improvement Projects, Series 1994A, 6.300%, 8/01/20 - MBIA Insured 750 Livermore-Amador Valley Water Management Agency, California, 8/11 at 100.00 AAA 738,314 Sewer Revenue Bonds, Series 2001A, 5.000%, 8/01/31 - AMBAC Insured 500 Los Angeles County Sanitation Districts Financing Authority, 10/13 at 100.00 AAA 500,960 California, Capital Projects Revenue Bonds, Senior Lien Series 2003A, 5.000%, 10/01/23 - FSA Insured 5,000 Orange County Sanitation District, California, Certificates 8/13 at 100.00 AAA 5,074,350 of Participation, Series 2003, 5.250%, 2/01/27 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ $ 255,130 Total Long-Term Investments (cost $230,614,460) - 96.5% 241,901,723 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 3.5% 8,847,231 -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $250,748,954 ==================================================================================================================== (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares. * Optional Call Provisions (not covered by the report of independent auditors): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings (not covered by the report of independent auditors): Using the higher of Standard & Poor's or Moody's rating. *** Securities are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensures the timely payment of principal and interest. Such securities are normally considered to be equivalent to AAA rated securities. N/R Investment is not rated. See accompanying notes to financial statements. 16 Nuveen California Performance Plus Municipal Fund, Inc. (NCP) Portfolio of INVESTMENTS August 31, 2003 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 4.9% $ 7,320 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 Baa2 $ 6,859,865 Settlement Asset-Backed Bonds, Sonoma County Tobacco Funding Corporation, Series 2002B, 5.125%, 6/01/20 3,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB 2,425,380 Tobacco Settlement Asset-Backed Bonds, Series 2003A-1, 6.250%, 6/01/33 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 3.6% 4,730 California State University, Systemwide Revenue Bonds, 11/12 at 100.00 AAA 4,832,688 Series 2002A, 5.000%, 11/01/19 - AMBAC Insured 2,000 University of California, Multiple Purpose Projects, Revenue 5/13 at 100.00 AAA 2,104,560 Bonds, Series 2003A, 5.125%, 5/15/17 (WI, settling 9/09/03) - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 10.6% 3,000 California Health Facilities Financing Authority, Revenue Bonds, 12/09 at 101.00 A3 3,157,320 Cedars-Sinai Medical Center, Series 1999A, 6.125%, 12/01/30 2,780 California Health Facilities Financing Authority, Insured Health 11/03 at 102.00 BBB 2,843,467 Facility Revenue Refunding Bonds, Valley Memorial Hospital, Series 1993A, 6.000%, 5/01/17 5,500 California Statewide Community Development Authority, 7/07 at 102.00 AA- 5,540,975 Certificates of Participation, St. Joseph Health System Refunding, Series 1997, 5.125%, 7/01/17 2,000 California Statewide Community Development Authority, Revenue No Opt. Call AAA 1,984,220 Refunding Bonds, Sherman Oaks Project, Series 1998A, 5.000%, 8/01/22 - AMBAC Insured Central California Joint Powers Health Financing Authority, Certificates of Participation, Community Hospitals of Central California, Series 1993: 2,500 5.250%, 2/01/13 2/04 at 101.00 Baa2 2,511,100 4,665 5.000%, 2/01/23 2/04 at 100.00 Baa2 4,251,028 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 6.0% 5,000 California Statewide Community Development Authority, 7/08 at 101.00 BBB 5,296,450 Revenue Refunding Bonds, Irvine Apartment Communities Development, Series 1998A, 4.900%, 5/15/25 (Mandatory put 5/15/08) 3,915 Los Angeles, California, GNMA Collateralized Multifamily 3/07 at 102.00 AAA 4,033,625 Housing Revenue Bonds, Ridgecroft Apartments Project, Series 1997E, 6.250%, 9/20/39 (Alternative Minimum Tax) 2,110 Los Angeles County Community Development Commission, 11/03 at 100.00 Aaa 2,114,114 California, FHA-Insured Section 8 Mortgage Revenue Refunding Bonds, Los Tomas Apartments, Series 1993, 6.500%, 7/15/23 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 22.8% 6,435 California State, General Obligation Veterans Welfare Bonds, 12/05 at 101.00 A 6,531,203 Series 2000BT, 5.375%, 12/01/16 (Alternative Minimum Tax) California State, General Obligation Bonds, Series 2003: 1,400 5.250%, 2/01/15 8/13 at 100.00 A3 1,464,400 2,350 5.250%, 2/01/21 8/13 at 100.00 A3 2,376,179 3,470 5.000%, 2/01/23 8/13 at 100.00 A3 3,375,304 2,500 Hawthorne School District, Los Angeles County, California, 11/08 at 102.00 AAA 2,631,750 General Obligation Bonds, Election of 1997, Series 1997A, 5.500%, 5/01/22 - FGIC Insured 1,530 Long Beach Community College District, California, General 5/13 at 100.00 AAA 1,581,484 Obligation Bonds, Series 2003A, 5.000%, 5/01/18 - MBIA Insured 8,000 Los Angeles Unified School District, California, General Obligation 7/10 at 100.00 AAA 8,243,280 Bonds, Election of 1997, Series 2000D, 5.375%, 7/01/25 - FGIC Insured 2,575 Oxnard School District, Ventura County, California, General 2/22 at 103.00 AAA 2,835,075 Obligation Refunding Bonds, Series 2001A, 5.750%, 8/01/30 - MBIA Insured 17 Nuveen California Performance Plus Municipal Fund, Inc. (NCP) (continued) Portfolio of INVESTMENTS August 31, 2003 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) $ 6,000 Puerto Rico Public Improvement, Bond Payment Obligation, No Opt. Call AAA $ 7,281,240 Series 1993, 7.000%, 7/01/10 - MBIA Insured 4,000 San Diego Unified School District, San Diego County, California, 7/13 at 101.00 AAA 4,128,280 General Obligation Bonds, Series 2003E, 5.250%, 7/01/22 - FSA Insured 3,000 San Jose-Evergreen Community College District, Santa Clara 9/10 at 100.00 AAA 3,183,630 County, California, Election of 1998, General Obligation Bonds, Series B, 5.600%, 9/01/24 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 27.2% 5,045 California State Public Works Board, Lease Revenue Bonds, 3/12 at 100.00 AAA 5,150,794 Department of Corrections, Series 2002A, 5.250%, 3/01/22 - AMBAC Insured 2,500 Corona Public Financing Authority, California, Superior Lien 9/09 at 102.00 AAA 2,536,225 Revenue Bonds, Series 1999A, 5.000%, 9/01/20 - FSA Insured 1,070 Fruitvale School District, California, Certificates of 12/03 at 100.00 N/R 1,075,168 Participation, Improvement Project, Series 1990, 7.875%, 6/01/04 4,000 Los Angeles County Metropolitan Transportation Authority, No Opt. Call AAA 4,518,080 California, Proposition C Sales Tax Revenue Refunding Bonds, Second Senior Lien, Series 1998A, 5.500%, 7/01/09 - AMBAC Insured 2,000 Oakland Redevelopment Agency, California, Subordinate Lien Tax 3/13 at 100.00 AAA 2,202,860 Allocation Bonds, Central District Redevelopment Project, Series 2003, 5.500%, 9/01/15 - FGIC Insured 8,800 Orange County, California, Recovery Certificates of Participation, 7/06 at 102.00 AAA 9,664,248 Series 1996A, 6.000%, 7/01/26 - MBIA Insured 1,000 Paramount Redevelopment Agency, California, Tax Allocation 8/13 at 100.00 AAA 1,001,900 Bonds, Project Area 1, Series 2003, 5.000%, 8/01/23 - MBIA Insured 1,665 Pleasanton Joint Powers Financing Authority, California, 9/03 at 102.00 Baa1 1,703,961 Reassessment Revenue Bonds, Series 1993A, 6.000%, 9/02/05 4,000 Puerto Rico Highway and Transportation Authority, Highway 7/12 at 100.00 A 4,033,840 Revenue Bonds, Series 2002D, 5.375%, 7/01/36 Santa Clara Redevelopment Agency, California, Tax Allocation Bonds, Bayshore North Project, Series 2003: 3,850 5.000%, 6/01/19 - MBIA Insured 6/13 at 100.00 AAA 3,949,869 2,695 5.000%, 6/01/20 - MBIA Insured 6/13 at 100.00 AAA 2,745,855 2,000 5.000%, 6/01/21 - MBIA Insured 6/13 at 100.00 AAA 2,023,720 3,115 5.000%, 6/01/22 - MBIA Insured 6/13 at 100.00 AAA 3,132,693 1,000 Stockton, California, Revenue Bonds, Community Facilities 9/06 at 102.00 Baa1 1,044,340 District 1, Weston Ranch, Series 1998A, 5.800%, 9/01/14 Sweetwater Union High School District, San Diego County, California, Certificates of Participation, Series 2002: 3,245 5.000%, 9/01/23 - FSA Insured 9/12 at 102.00 AAA 3,238,899 4,015 5.000%, 9/01/24 - FSA Insured 9/12 at 102.00 AAA 3,986,614 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 32.5% 5,360 California Infrastructure and Economic Development Bank, 7/13 at 100.00 AAA 5,369,970 Revenue Bonds, Bay Area Toll Bridges, First Lien Series 2003A, 5.000%, 7/01/23 - FSA Insured 6,500 Foothill-Eastern Transportation Corridor Agency, California, 1/14 at 101.00 BBB- 4,310,735 Toll Road Refunding Revenue Bonds, Series 1999, 0.000%, 1/15/29 6,000 Foothill-Eastern Transportation Corridor Agency, California, 1/10 at 100.00 AAA 5,866,740 Toll Road Revenue Bonds, Series 1995A, 5.000%, 1/01/35 - MBIA Insured Long Beach, California, Harbor Revenue Bonds, Series 2000A: 2,740 5.750%, 5/15/14 (Alternative Minimum Tax) 5/10 at 101.00 AA- 2,959,090 11,885 5.750%, 5/15/15 (Alternative Minimum Tax) 5/10 at 101.00 AA- 12,763,896 Orange County, California, Airport Revenue Refunding Bonds, John Wayne Airport, Series 2003: 1,835 4.500%, 7/01/14 - FSA Insured 7/13 at 100.00 AAA 1,884,123 2,500 5.000%, 7/01/17 - FSA Insured 7/13 at 100.00 AAA 2,605,400 18 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION (continued) $ 8,550 Port of Oakland, California, Revenue Bonds, Series 2000K, 5/10 at 100.00 AAA $ 8,882,339 5.750%, 11/01/29 (Alternative Minimum Tax) - FGIC Insured 1,400 Port of Oakland, California, Revenue Bonds, Series 2002M, 11/12 at 100.00 AAA 1,456,210 5.250%, 11/01/20 - FGIC Insured 14,000 San Francisco City and County Airports Commission, California, 5/10 at 101.00 AAA 14,313,600 Revenue Bonds, San Francisco International Airport, Series 2, Issue 25, 5.500%, 5/01/24 (Alternative Minimum Tax) - FSA Insured 2,000 San Francisco City and County Airports Commission, California, 5/11 at 100.00 AAA 2,003,020 Revenue Refunding Bonds, San Francisco International Airport, Series 2, Issue 27B, 5.000%, 5/01/23 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 8.7% 2,315 California Statewide Community Development Authority, No Opt. Call N/R*** 2,514,113 Certificates of Participation, Insured Hospital Revenue Refunding Bonds, Triad Healthcare, Series 1992, 6.250%, 8/01/06 4,000 Contra Costa County, California, GNMA Mortgage-Backed No Opt. Call AAA 5,486,880 Securities Program, Home Mortgage Revenue Bonds, Series 1988, 8.250%, 6/01/21 (Alternative Minimum Tax) 5,850 Puerto Rico Public Improvement, General Obligation Bonds, 7/10 at 100.00 AAA 6,680,349 Series 2000, 5.750%, 7/01/26 (Pre-refunded to 7/01/10) - MBIA Insured 1,965 South Placer Wastewater Authority, California, Wastewater 11/10 at 101.00 AAA 1,991,685 Revenue Bonds, Series 2000A, 5.250%, 11/01/27 (Pre-refunded to 11/01/10) - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 19.4% 1,221 California Pollution Control Financing Authority, Solid Waste 7/07 at 102.00 N/R 219,740 Disposal Revenue Bonds, CanFibre of Riverside Project, Series 1997A, 9.000%, 7/01/19 (Alternative Minimum Tax)# 5,250 California Department of Water Resources, Power Supply 5/12 at 101.00 A3 5,301,450 Revenue Bonds, Series 2002A, 5.125%, 5/01/18 5,160 California Statewide Community Development Authority, 12/04 at 102.00 N/R 4,222,273 Refunding Certificates of Participation, Rio Bravo Fresno Project, Series 1999A, 6.300%, 12/01/18 11,000 Chula Vista, California, Industrial Development Revenue 12/03 at 101.00 AAA 11,261,580 Bonds, San Diego Gas and Electric Company, Series 1992A, 6.400%, 12/01/27 (Alternative Minimum Tax) - AMBAC Insured 4,100 Merced Irrigation District, California, Revenue Refunding 9/05 at 102.00 Baa3 4,289,133 Bonds, Electric System Project, Series 2001, 6.750%, 9/01/31 10,450 Orange County Public Financing Authority, California, Waste No Opt. Call Aaa 11,243,155 Management System Revenue Refunding Bonds, Series 1997, 5.250%, 12/01/13 (Alternative Minimum Tax) - AMBAC Insured 500 Sacramento Municipal Utility District, California, Electric 8/12 at 100.00 AAA 513,835 Revenue Refunding Bonds, Series 2002Q, 5.250%, 8/15/22 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 11.7% 2,500 California Department of Water Resources, Water System 6/13 at 100.00 AAA 2,682,300 Revenue Bonds, Central Valley Project, Series 2003Y, 5.250%, 12/01/16 - FGIC Insured 2,500 Pajaro Valley Water Management Agency, California, 3/09 at 101.00 AAA 2,680,825 Revenue Certificates of Participation, Series 1999A, 5.750%, 3/01/29 - AMBAC Insured 5,985 Sacramento County Sanitation Districts Financing Authority, 12/10 at 101.00 AA 6,538,553 California, Revenue Bonds, Series 2000A, 5.250%, 12/01/12 4,000 Sacramento County Sanitation District Financing Authority, No Opt. Call AAA 4,402,600 California, Revenue Refunding Bonds, Series 2001, 5.500%, 12/01/20 - AMBAC Insured 19 Nuveen California Performance Plus Municipal Fund, Inc. (NCP) (continued) Portfolio of INVESTMENTS August 31, 2003 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER (continued) $ 4,585 Santa Maria, California, Subordinate Water and Wastewater 8/12 at 101.00 AAA $ 4,391,788 Revenue Certificates of Participation, Series 1997A, 0.000%, 8/01/27 - AMBAC Insured 1,700 South Gate Utility Authority, California, Subordinate Revenue 10/11 at 102.00 AAA 1,709,962 Bonds, Water and Sewer System Projects, Series 2001, 5.000%, 10/01/22 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ $ 275,631 Total Long-Term Investments (cost $273,853,412) - 147.4% 282,141,027 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 8.0% 15,267,476 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (55.4)% (106,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $191,408,503 ==================================================================================================================== (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares. * Optional Call Provisions (not covered by the report of independent auditors): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings (not covered by the report of independent auditors): Using the higher of Standard & Poor's or Moody's rating. *** Securities are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensures the timely payment of principal and interest. Such securities are normally considered to be equivalent to AAA rated securities. N/R Investment is not rated. (WI) Security purchased on a when-issued basis. # Non-income producing security. On January 1, 2002, CFR Holdings, Inc. (an entity formed by Nuveen for the benefit of the Nuveen Funds owning various interests in CanFibre of Riverside) took possession of CanFibre of Riverside assets on behalf of the various Nuveen Funds. CFR Holdings, Inc., has determined that a sale of the facility is in the best interest of shareholders and is proceeding accordingly. See accompanying notes to financial statements. 20 Nuveen California Municipal Market Opportunity Fund, Inc. (NCO) Portfolio of INVESTMENTS August 31, 2003 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 5.3% $ 5,140 California County Tobacco Securitization Agency, Tobacco Settlement 6/12 at 100.00 Baa2 $ 4,816,900 Asset-Backed Bonds, Sonoma County Tobacco Funding Corporation, Series 2002B, 5.125%, 6/01/20 2,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB 1,616,920 Tobacco Settlement Asset-Backed Bonds, Series 2003A-1, 6.250%, 6/01/33 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 7.1% 1,530 University of California, Certificates of Participation, San Diego 1/10 at 101.00 Aa2 1,573,054 and Sacramento Campus Projects, Series 2002A, 5.250%, 1/01/20 6,580 University of California, Revenue Bonds, Multiple Purpose Projects, 9/08 at 101.00 Aa2 6,923,015 Series 2000K, 5.000%, 9/01/13 ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 13.2% 2,000 California Health Facilities Financing Authority, Revenue 12/09 at 101.00 A3 2,104,880 Bonds, Cedars-Sinai Medical Center, Series 1999A, 6.125%, 12/01/30 3,200 California Infrastructure and Economic Development Bank, 8/11 at 102.00 A 3,168,896 Revenue Bonds, Kaiser Hospital Assistance I - LLC, Series 2001A, 5.550%, 8/01/31 1,000 California Statewide Community Development Authority, No Opt. Call AAA 992,110 Revenue Refunding Bonds, Sherman Oaks Project, Series 1998A, 5.000%, 8/01/22 - AMBAC Insured 5,930 Central California Joint Powers Health Financing Authority, 2/04 at 100.00 Baa2 5,403,772 Certificates of Participation, Community Hospitals of Central California, Series 1993, 5.000%, 2/01/23 Loma Linda, California, Hospital Revenue Bonds, Loma Linda University Medical Center Project, Series 1993A: 1,330 5.750%, 12/01/03 No Opt. Call BB 1,328,444 3,000 6.500%, 12/01/18 12/03 at 102.00 BB 2,932,740 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 1.4% 1,550 Housing Authority of the County of San Bernardino, California, No Opt. Call BBB+ 1,632,631 Multifamily Housing Revenue Refunding Bonds, Equity Residential - Redlands Lawn & Tennis Apartments, Issue 1999A, 5.200%, 6/15/29 (Mandatory put 6/15/09) ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 25.0% 4,950 State of California, Various Purpose General Obligation Bonds, 3/10 at 101.00 AAA 5,213,142 5.750%, 3/01/27 - MBIA Insured 5,000 California State, General Obligation Veterans Welfare Bonds, 12/05 at 101.00 A 5,074,750 Series 2000BT, 5.375%, 12/01/16 (Alternative Minimum Tax) California State, General Obligation Bonds, Series 2003: 900 5.250%, 2/01/15 8/13 at 100.00 A3 941,400 1,400 5.250%, 2/01/20 8/13 at 100.00 A3 1,422,134 5,000 Los Angeles Unified School District, California, General 7/10 at 100.00 AAA 5,152,050 Obligation Bonds, Election of 1997, Series 2000D, 5.375%, 7/01/25 - FGIC Insured 2,500 Oakland Unified School District, Alameda County, California, 8/12 at 100.00 AAA 2,565,250 General Obligation Bonds, Series 2002, 5.250%, 8/01/21 - FGIC Insured 1,000 Pomona Unified School District, California, General Obligation 8/11 at 103.00 AAA 1,143,520 Refunding Bonds, Series 1997A, 6.150%, 8/01/15 - MBIA Insured 3,000 Puerto Rico Public Improvement, General Obligation Bonds, No Opt. Call A- 3,508,980 Series 1996, 6.500%, 7/01/13 5,000 San Diego Unified School District, California, General 7/10 at 100.00 AAA 5,080,350 Obligation Bonds, Election of 1998, Series 2000B, 5.125%, 7/01/21 - MBIA Insured 21 Nuveen California Municipal Market Opportunity Fund, Inc. (NCO) (continued) Portfolio of INVESTMENTS August 31, 2003 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 28.5% $ 3,000 Los Angeles County Public Works Financing Authority, California, 10/07 at 101.00 AA $ 3,038,340 Revenue Bonds, Los Angeles County Regional Park and Open Space District, Series 1997A, 5.000%, 10/01/19 2,000 Monterey County, California, Certificates of Participation, 8/11 at 100.00 Aaa 2,020,120 Master Plan Financing, Series 2001, 5.000%, 8/01/21 - MBIA Insured 1,000 Ontario, California, Special Tax Bonds, Community Facilities 9/06 at 102.00 N/R 1,043,820 District 5, Freeway Interchange Project, Series 1997, 6.375%, 9/01/17 10,900 Ontario Redevelopment Financing Authority, San Bernardino No Opt. Call AAA 14,375,029 County, California, Revenue Refunding Bonds, Redevelopment Project 1, Series 1995, 7.400%, 8/01/25 - MBIA Insured 2,500 Sacramento City Financing Authority, California, Lease Revenue No Opt. Call AAA 2,706,025 Refunding Bonds, Series 1993A, 5.400%, 11/01/20 - AMBAC Insured 2,255 San Bernardino County, California, Certificates of Participation, 8/05 at 102.00 AAA 2,372,869 Medical Center Financing Project, Series 1995, 5.500%, 8/01/22 - MBIA Insured 1,200 San Jose Financing Authority, California, Lease Revenue Refunding 9/11 at 100.00 AAA 1,219,380 Bonds, Convention Center Project, Series 2001F, 5.000%, 9/01/20 - MBIA Insured 7,000 Community Redevelopment Agency of Union City, California, 10/09 at 101.00 AAA 7,526,190 Redevelopment Project Tax Allocation Bonds, Series 1999, 5.750%, 10/01/32 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 28.7% 2,000 Bay Area Toll Authority, California, San Francisco Bay Area Toll No Opt. Call AA 2,181,000 Bridge Revenue Bonds, Series 2001D, 5.000%, 4/01/10 4,000 Foothill-Eastern Transportation Corridor Agency, California, 1/14 at 101.00 BBB- 2,652,760 Toll Road Refunding Revenue Bonds, Series 1999, 0.000%, 1/15/29 8,500 Long Beach, California, Harbor Revenue Bonds, Series 2000A, 5/10 at 101.00 AA- 9,179,660 5.750%, 5/15/14 (Alternative Minimum Tax) 5,250 Port of Oakland, California, Revenue Bonds, Series 2000K, 5/10 at 100.00 AAA 5,454,068 5.750%, 11/01/29 (Alternative Minimum Tax) - FGIC Insured 5,000 Sacramento County, California, Airport System Revenue Bonds, 7/06 at 102.00 AAA 5,294,700 Series 1996A, 5.900%, 7/01/24 (Alternative Minimum Tax) - MBIA Insured San Francisco City and County Airports Commission, California, Revenue Bonds, San Francisco International Airport, Series 2, Issue 25: 2,515 5.500%, 5/01/24 (Alternative Minimum Tax) - FSA Insured 5/10 at 101.00 AAA 2,571,336 3,100 5.750%, 5/01/30 (Alternative Minimum Tax) - FSA Insured 5/10 at 101.00 AAA 3,230,200 2,500 San Francisco City and County Airports Commission, California, 1/08 at 102.00 AAA 2,719,725 Special Facilities Lease Revenue Bonds, San Francisco International Airport, SFO Fuel Company LLC, Series 2000A, 6.125%, 1/01/27 (Alternative Minimum Tax) - FSA Insured 1,250 San Francisco City and County Airports Commission, California, 5/10 at 101.00 AAA 1,263,500 Revenue Bonds, San Francisco International Airport, Series 2, Issue 26B, 5.000%, 5/01/21 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 4.3% 4,000 Pomona, California, GNMA-FHLMC Mortgage-Backed Securities, No Opt. Call AAA 5,192,520 Single Family Mortgage Revenue Refunding Bonds, Series 1990B, 7.500%, 8/01/23 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 19.8% 1,500 California Pollution Control Financing Authority, Pollution 9/09 at 101.00 AAA 1,542,585 Control Revenue Refunding Bonds, Southern California Edison Company, Series 1999A, 5.450%, 9/01/29 - MBIA Insured 804 California Pollution Control Financing Authority, Solid Waste 7/07 at 102.00 N/R 144,707 Disposal Revenue Bonds, CanFibre of Riverside Project, Series 1997A, 9.000%, 7/01/19 (Alternative Minimum Tax)# 3,000 California Department of Water Resources, Power Supply 5/12 at 101.00 A3 3,029,400 Revenue Bonds, Series 2002A, 5.125%, 5/01/18 4,500 California Statewide Community Development Authority, 12/04 at 102.00 N/R 3,682,215 Refunding Certificates of Participation, Rio Bravo Fresno Project, Series 1999A, 6.300%, 12/01/18 8,000 Chula Vista, California, Industrial Development Revenue Bonds, 12/03 at 101.00 AAA 8,190,240 San Diego Gas and Electric Company, Series 1992A, 6.400%, 12/01/27 (Alternative Minimum Tax) - AMBAC Insured 22 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES (continued) Merced Irrigation District, California, Revenue Refunding Bonds, Electric System Project, Series 2001: $ 1,650 6.750%, 9/01/31 9/05 at 102.00 Baa3 $ 1,726,114 1,000 6.850%, 9/01/36 9/05 at 102.00 Baa3 1,047,930 4,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, No Opt. Call AAA 4,515,040 Series 2000HH, 5.500%, 7/01/10 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 17.6% 4,000 California Department of Water Resources, Water System 12/11 at 100.00 AA 4,375,400 Revenue Bonds, Central Valley Project, Series 2001W, 5.500%, 12/01/15 1,030 California Department of Water Resources, Water System No Opt. Call AAA 1,146,070 Revenue Bonds, Central Valley Project, Series 2002X, 5.500%, 12/01/17 - FGIC Insured 4,000 Los Angeles, California, Wastewater System Revenue Bonds, 11/03 at 102.00 AAA 3,997,520 Series 1993D, 4.700%, 11/01/19 - FGIC Insured 2,000 San Francisco City and County Public Utilities Commission, 4/13 at 100.00 AAA 2,083,260 California, Clean Water Revenue Refunding Bonds, Series 2003A, 5.250%, 10/01/20 - MBIA Insured 10,000 Santa Maria, California, Subordinate Water and Wastewater 8/12 at 101.00 AAA 9,578,600 Revenue Certificates of Participation, Series 1997A, 0.000%, 8/01/27 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ $ 175,464 Total Long-Term Investments (cost $172,985,635) - 150.9% 181,695,261 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 5.6% 6,742,092 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (56.5)% (68,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $120,437,353 ==================================================================================================================== (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares. * Optional Call Provisions (not covered by the report of independent auditors): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings (not covered by the report of independent auditors): Using the higher of Standard & Poor's or Moody's rating. N/R Investment is not rated. # Non-income producing security. On January 1, 2002, CFR Holdings, Inc. (an entity formed by Nuveen for the benefit of the Nuveen Funds owning various interests in CanFibre of Riverside) took possession of CanFibre of Riverside assets on behalf of the various Nuveen Funds. CFR Holdings, Inc., has determined that a sale of the facility is in the best interest of shareholders and is proceeding accordingly. See accompanying notes to financial statements. 23 Nuveen California Investment Quality Municipal Fund, Inc. (NQC) Portfolio of INVESTMENTS August 31, 2003 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 1.8% $ 3,910 California Statewide Financing Authority, Tobacco Settlement 5/12 at 100.00 Baa2 $ 3,048,588 Asset-Backed Bonds, Pooled Tobacco Securitization Program, Series 2002A, 5.625%, 5/01/29 1,000 Southern California Tobacco Securitization Authority, Tobacco 6/12 at 100.00 BBB 712,600 Settlement Asset-Backed Bonds, Senior Series 2001A, 5.500%, 6/01/36 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 10.9% 5,000 California Educational Facilities Authority, Revenue Bonds, 10/06 at 102.00 AAA 4,933,150 Chapman University, Series 1996, 5.125%, 10/01/26 - CONNIE LEE/AMBAC Insured 3,000 California Educational Facilities Authority, Revenue Bonds, 11/10 at 100.00 Aaa 3,196,830 University of the Pacific, Series 2000, 5.750%, 11/01/30 - MBIA Insured 6,000 California State Public Works Board, Lease Revenue Bonds, 10/07 at 102.00 A2 5,985,540 California State University Projects, Series 1997C, 5.400%, 10/01/22 2,500 Long Beach Bond Financing Authority, California, Lease Revenue 11/11 at 101.00 AAA 2,520,625 Refunding Bonds, Long Beach Aquarium of the South Pacific, Series 2001, 5.250%, 11/01/30 - AMBAC Insured 2,540 University of California, Revenue Bonds, Research Facilities, 9/09 at 101.00 AAA 2,521,560 Series 2001E, 5.000%, 9/01/25 - AMBAC Insured 3,000 University of California, Multiple Purpose Projects, Revenue Bonds, 5/13 at 100.00 AAA 3,156,840 Series 2003A, 5.125%, 5/15/17 (WI, settling 9/09/03) - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 10.8% 2,110 California Health Facilities Financing Authority, Kaiser Permanente, 10/08 at 101.00 A 2,197,713 Revenue Bonds, Series 1998B, 5.250%, 10/01/12 3,000 California Health Facilities Financing Authority, Revenue Bonds, 12/09 at 101.00 A3 3,157,320 Cedars-Sinai Medical Center, Series 1999A, 6.125%, 12/01/30 2,145 California Statewide Community Development Authority, Revenue No Opt. Call A 2,245,150 Bonds, Kaiser Permanente System, Series 2002E, 4.700%, 11/01/36 (Mandatory put 6/01/09) Central California Joint Powers Health Financing Authority, Certificates of Participation, Community Hospitals of Central California, Series 1993: 1,750 5.250%, 2/01/13 2/04 at 101.00 Baa2 1,757,770 6,820 5.500%, 2/01/15 2/04 at 101.00 Baa2 6,850,417 5,000 Loma Linda, California, Hospital Revenue Bonds, Loma Linda 12/03 at 102.00 BB 4,887,900 University Medical Center Project, Series 1993A, 6.500%, 12/01/18 1,000 Stockton, California, Health Facility Revenue Bonds, Dameron 12/07 at 102.00 BBB+ 1,035,550 Hospital Association, Series 1997A, 5.700%, 12/01/14 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 5.2% 10,000 California Statewide Community Development Authority, 7/08 at 101.00 BBB 10,592,900 Revenue Refunding Bonds, Irvine Apartment Communities Development, Series 1998A, 4.900%, 5/15/25 (Mandatory put 5/15/08) ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 1.2% 8,575 California Housing Finance Agency, Home Mortgage Revenue 8/09 at 40.45 AAA 2,464,798 Bonds, Series 1999K, 0.000%, 8/01/24 - MBIA Insured 24 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 21.7% $ 4,075 State of California, General Obligation Various Purpose 9/10 at 100.00 A3 $ 4,123,778 Bonds, 5.250%, 9/01/20 14,000 State of California, Various Purpose General Obligation 3/10 at 101.00 AAA 14,744,240 Bonds, 5.750%, 3/01/27 - MBIA Insured 2,500 California State, General Obligation Refunding Bonds, 2/12 at 100.00 A3 2,442,275 Series 2002, 5.250%, 2/01/30 California State, General Obligation Bonds, Series 2003: 2,400 5.250%, 2/01/20 8/13 at 100.00 A3 2,437,944 2,850 5.000%, 2/01/22 8/13 at 100.00 A3 2,791,119 2,395 Fontana Unified School District, San Bernardino County, 5/09 at 102.00 AAA 2,671,215 California, General Obligation Refunding Bonds, Series 1997D, 5.800%, 5/01/17 - FGIC Insured 10,060 Los Angeles, California, General Obligation Bonds, 9/11 at 100.00 AA 10,162,411 Series 2001A, 5.000%, 9/01/21 1,500 Pajaro Valley Unified School District, Santa Cruz County, 8/13 at 100.00 AAA 1,577,220 California, General Obligation Bonds, Series 2003, 5.000%, 8/01/16 - FSA Insured 3,250 Puerto Rico Public Improvement, General Obligation Refunding No Opt. Call AAA 3,600,090 Bonds, Series 2002A, 5.500%, 7/01/20 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 36.6% 3,135 California State Public Works Board, Department of General 12/12 at 100.00 AAA 3,356,519 Services, Lease Revenue Bonds, Capital East End, Series 2002A, 5.250%, 12/01/15 - AMBAC Insured 3,000 California State Public Works Board, Lease Revenue Bonds, 12/11 at 102.00 AAA 3,015,330 Department of Mental Health, Hospital Addition, Series 2001A, 5.000%, 12/01/21 - AMBAC Insured Los Angeles County Metropolitan Transportation Authority, California, Proposition C Sales Tax Revenue Bonds, Second Senior Lien, Series 2000A: 8,005 5.250%, 7/01/25 - FGIC Insured 7/10 at 101.00 AAA 8,127,717 6,500 5.250%, 7/01/30 - FGIC Insured 7/10 at 101.00 AAA 6,574,425 4,130 Manteca Unified School District, San Joaquin County, 9/11 at 101.00 AAA 4,137,393 California, Special Tax Bonds, Community Facilities District 89-2, Series 2001C, 5.000%, 9/01/23 - MBIA Insured 1,685 Ontario, California, Special Tax Bonds, Community Facilities 9/06 at 102.00 N/R 1,758,837 District 5, Freeway Interchange Project, Series 1997, 6.375%, 9/01/17 3,890 Ontario Redevelopment Financing Authority, California, 8/11 at 101.00 AAA 3,936,913 Lease Revenue Bonds, Capital Projects, Series 2001, 5.000%, 8/01/21 - AMBAC Insured 3,600 Ontario Redevelopment Financing Authority, San Bernardino No Opt. Call AAA 4,747,716 County, California, Revenue Refunding Bonds, Redevelopment Project 1, Series 1995, 7.400%, 8/01/25 - MBIA Insured 9,825 Orange County, California, Recovery Certificates of Participation, 7/06 at 102.00 AAA 10,789,913 Series 1996A, 6.000%, 7/01/26 - MBIA Insured 1,000 Paramount Redevelopment Agency, California, Tax Allocation 8/13 at 100.00 AAA 1,001,900 Bonds, Project Area 1, Series 2003, 5.000%, 8/01/23 - MBIA Insured 4,000 Puerto Rico Highway and Transportation Authority, Highway 7/12 at 100.00 A 4,033,840 Revenue Bonds, Series 2002D, 5.375%, 7/01/36 1,715 Redding Joint Powers Financing Authority, California, Lease 1/04 at 102.00 A- 1,750,844 Revenue Bonds, Solid Waste and Corporate Yard, Series 1993A, 5.500%, 1/01/13 4,000 Sacramento City Financing Authority, California, Lease Revenue No Opt. Call AAA 4,329,640 Refunding Bonds, Series 1993A, 5.400%, 11/01/20 - AMBAC Insured 6,000 San Jose Redevelopment Agency, California, Tax Allocation 2/04 at 102.00 AAA 5,713,020 Bonds, Merged Area Redevelopment Project, Series 1993, 4.750%, 8/01/24 - MBIA Insured 3,535 San Jose Financing Authority, California, Lease Revenue 9/11 at 100.00 AAA 3,592,090 Refunding Bonds, Convention Center Project, Series 2001F, 5.000%, 9/01/20 - MBIA Insured 2,840 Santa Clara Redevelopment Agency, California, Tax Allocation 6/13 at 100.00 AAA 2,845,226 Bonds, Bayshore North Project, Series 2003, 5.000%, 6/01/23 - MBIA Insured 5,250 Santa Cruz County Redevelopment Agency, California, Subordinate 9/10 at 102.00 AAA 5,340,405 Lien Tax Allocation Bonds, Live Oak and Soquel Community Improvement Projects, Series 2000, 5.250%, 9/01/25 - AMBAC Insured 25 Nuveen California Investment Quality Municipal Fund, Inc. (NQC) (continued) Portfolio of INVESTMENTS August 31, 2003 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 32.2% $ 18,000 Alameda Corridor Transportation Authority, California, Senior Lien 10/09 at 101.00 AAA $ 17,677,440 Revenue Bonds, Series 1999A, 5.000%, 10/01/29 - MBIA Insured Bay Area Toll Authority, California, San Francisco Bay Area Toll Bridge Revenue Bonds, Series 2001D: 3,875 5.000%, 4/01/12 4/11 at 100.00 AA 4,145,436 2,605 5.000%, 4/01/16 4/11 at 100.00 AA 2,712,482 6,500 Foothill-Eastern Transportation Corridor Agency, California, 1/14 at 101.00 BBB- 4,310,735 Toll Road Refunding Revenue Bonds, Series 1999, 0.000%, 1/15/29 2,000 Foothill-Eastern Transportation Corridor Agency, California, 1/10 at 100.00 AAA 1,955,580 Toll Road Revenue Bonds, Series 1995A, 5.000%, 1/01/35 - MBIA Insured 9,980 Long Beach, California, Harbor Revenue Bonds, Series 2000A, 5/10 at 101.00 AA- 10,204,251 5.500%, 5/15/25 (Alternative Minimum Tax) 9,000 Port of Oakland, California, Revenue Bonds, Series 2000K, 5/10 at 100.00 AAA 9,349,830 5.750%, 11/01/29 (Alternative Minimum Tax) - FGIC Insured 15,000 San Francisco City and County Airports Commission, California, 5/10 at 101.00 AAA 15,630,000 Revenue Bonds, San Francisco International Airport, Series 2, Issue 25, 5.750%, 5/01/30 (Alternative Minimum Tax) - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 11.3% 12,830 California State, Various Purpose General Obligation Bonds, 3/05 at 101.00 A3*** 13,810,725 Series 1995, 5.750%, 3/01/13 (Pre-refunded to 3/01/05) 1,155 California Statewide Community Development Authority, No Opt. Call N/R*** 1,254,342 Certificates of Participation, Insured Hospital Revenue Refunding Bonds, Triad Healthcare, Series 1992, 6.250%, 8/01/06 1,000 Foothill-Eastern Transportation Corridor Agency, California, 1/07 at 100.00 AAA 1,122,510 Toll Road Revenue Bonds, Series 1995A, 6.000%, 1/01/34 (Pre-refunded to 1/01/07) 2,500 Los Angeles Community Redevelopment Agency, California, 1/04 at 100.00 BBB*** 2,548,250 Tax Allocation Refunding Bonds, Central Business District Redevelopment Project, Series 1987G, 6.750%, 7/01/10 4,000 San Francisco City and County Airports Commission, 5/05 at 101.00 AAA 4,350,280 California, Revenue Bonds, San Francisco International Airport, Series 2, Issue 11, 6.250%, 5/01/26 (Alternative Minimum Tax) (Pre-refunded to 5/01/05) - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 11.1% 6,000 California Department of Water Resources, Power Supply 5/12 at 101.00 A3 6,058,800 Revenue Bonds, Series 2002A, 5.125%, 5/01/18 7,945 Chula Vista, California, Industrial Development Revenue Bonds, 12/03 at 101.00 AAA 8,133,932 San Diego Gas and Electric Company, Series 1992A, 6.400%, 12/01/27 (Alternative Minimum Tax) - AMBAC Insured 5,000 Los Angeles Department of Water and Power, California, 7/11 at 100.00 AAA 5,199,550 Power System Revenue Bonds, Series 2001A-1, 5.250%, 7/01/20 - FSA Insured 3,210 Turlock Irrigation District, California, Electric Revenue Bonds, 1/13 at 100.00 AAA 3,367,290 Series 2003A, 5.000%, 1/01/16 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 5.0% 4,000 California Department of Water Resources, Water System 12/11 at 100.00 AA 4,364,000 Revenue Bonds, Central Valley Project, Series 2001W, 5.500%, 12/01/16 3,015 Oxnard Financing Authority, California, Wastewater Revenue 6/13 at 100.00 AAA 3,141,238 Bonds, Series 2003, 5.000%, 6/01/17 - FGIC Insured San Elijo Joint Powers Authority, San Diego County, California, Revenue Refunding Bonds, San Elijo Wastewater Facilities, Series 2003: 1,245 5.000%, 3/01/16 - FSA Insured 3/12 at 101.00 AAA 1,306,964 1,310 5.000%, 3/01/17 - FSA Insured 3/12 at 101.00 AAA 1,363,800 ------------------------------------------------------------------------------------------------------------------------------------ $ 302,660 Total Long-Term Investments (cost $290,636,182) - 147.8% 302,874,706 =============----------------------------------------------------------------------------------------------------------------------- 26 PRINCIPAL MARKET AMOUNT (000) DESCRIPTION(1) RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ SHORT-TERM INVESTMENTS - 0.5% $ 1,100 California Infrastructure and Economic Development Bank, A-1+ $ 1,100,000 Insured Revenue Bonds, Rand Corporation, Variable Rate Demand Obligations, Series 2002B, 0.800%, 4/01/42 - AMBAC Insured+ ------------------------------------------------------------------------------------------------------------------------------------ $ 1,100 Total Short-Term Investments (cost $1,100,000) 1,100,000 =============----------------------------------------------------------------------------------------------------------------------- Total Investments (cost $291,736,182) - 148.3% 303,974,706 -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 6.3% 12,999,536 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (54.6)% (112,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $204,974,242 ==================================================================================================================== (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares. * Optional Call Provisions (not covered by the report of independent auditors): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings (not covered by the report of independent auditors): Using the higher of Standard & Poor's or Moody's rating. *** Securities are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensures the timely payment of principal and interest. Such securities are normally considered to be equivalent to AAA rated securities. N/R Investment is not rated. (WI) Security purchased on a when-issued basis. + Security has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term security. The rate disclosed is that currently in effect. This rate changes periodically based on market conditions or a specified market index. See accompanying notes to financial statements. 27 Nuveen California Select Quality Municipal Fund, Inc. (NVC) Portfolio of INVESTMENTS August 31, 2003 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 7.2% $ 4,625 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 Baa2 $ 3,325,098 Settlement Asset-Backed Bonds, Stanislaus County Tobacco Funding Corporation, Series 2002A, 5.500%, 6/01/33 9,150 California Pollution Control Financing Authority, Sewerage and 12/06 at 101.00 A+ 9,361,823 Solid Waste Disposal Facilities Revenue Bonds, Anheuser-Busch Project, Series 1996, 5.750%, 12/01/30 (Alternative Minimum Tax) 15,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB 12,126,900 Tobacco Settlement Asset-Backed Bonds, Series 2003A-1, 6.250%, 6/01/33 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 3.2% 5,790 University of California, Revenue Refunding Bonds, 9/03 at 102.00 AAA 5,793,242 Multiple Purpose Projects, Series 1993C, 5.000%, 9/01/23 - AMBAC Insured 5,125 University of California, Revenue Bonds, Research Facilities, 9/09 at 101.00 AAA 5,155,238 Series 2001E, 5.000%, 9/01/22 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ ENERGY - 2.8% 9,500 California Pollution Control Financing Authority, Exempt 12/06 at 102.00 AAA 9,748,615 Facilities Revenue Bonds, Mobil Oil Corporation Project, Series 1996, 5.500%, 12/01/29 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 17.3% 1,750 ABAG Finance Authority for Non-Profit Corporations, 4/12 at 100.00 BBB 1,792,613 California, Insured Revenue Bonds, Sansum-Santa Barbara Medical Foundation Clinic, Series 2002A, 5.500%, 4/01/21 13,500 California Health Facilities Financing Authority, Revenue 12/09 at 101.00 A3 14,207,940 Bonds, Cedars-Sinai Medical Center, Series 1999A, 6.125%, 12/01/30 3,000 California Health Facilities Financing Authority, Insured Health 7/04 at 102.00 AAA 2,981,670 Facility Revenue Refunding Bonds, Catholic Healthcare West, Series 1994A, 4.750%, 7/01/19 - MBIA Insured 5,000 California Statewide Community Development Authority, 7/07 at 102.00 AA- 5,037,250 Certificates of Participation, St. Joseph Health System Refunding, Series 1997, 5.125%, 7/01/17 14,000 California Statewide Community Development Authority, 7/10 at 101.00 BBB 14,812,000 Certificates of Participation, Catholic Healthcare West, Series 1999, 6.500%, 7/01/20 1,775 California Statewide Community Development Authority, 1/04 at 102.00 AA- 1,784,869 Certificates of Participation, St. Joseph Health System, Series 1993, 5.500%, 7/01/23 2,000 California Statewide Community Development Authority, No Opt. Call AAA 1,984,220 Revenue Refunding Bonds, Sherman Oaks Project, Series 1998A, 5.000%, 8/01/22 - AMBAC Insured 9,350 City of Loma Linda, California, Hospital Revenue Refunding 12/03 at 102.00 AAA 9,516,524 Bonds, Loma Linda University Medical Center Project, Series 1993-C, 5.375%, 12/01/22 - MBIA Insured 6,000 Madera County, California, Certificates of Participation, 3/05 at 102.00 AAA 6,322,440 Valley Children's Hospital Project, Series 1995, 5.750%, 3/15/28 - MBIA Insured 1,050 Stockton, California, Health Facility Revenue Bonds, Dameron 12/07 at 102.00 BBB+ 1,106,417 Hospital Association, Series 1997A, 5.450%, 12/01/10 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 3.4% 1,405 California Housing Finance Agency, Single Family Mortgage 5/05 at 102.00 AAA 1,429,391 Bonds, Senior Series 1995A-2, 6.350%, 8/01/15 (Alternative Minimum Tax) 595 California Housing Finance Agency, Single Family Mortgage 10/05 at 102.00 AAA 628,731 Bonds, Mezzanine Series 1995B-2, 6.250%, 8/01/14 (Alternative Minimum Tax) - AMBAC Insured 2,835 California Housing Finance Agency, Single Family Mortgage 10/05 at 102.00 AAA 2,878,602 Bonds, Senior Series 1995B-2, 6.250%, 2/01/18 (Alternative Minimum Tax) 28 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY (continued) $ 18,065 California Housing Finance Agency, Home Mortgage Revenue 8/10 at 27.19 AAA $ 3,220,628 Bonds, Series 2000T, 0.000%, 2/01/32 (Alternative Minimum Tax) - MBIA Insured 3,560 Puerto Rico Housing Bank and Finance Agency, Single Family 4/05 at 102.00 AAA 3,704,856 Mortgage Revenue Bonds, Affordable Housing Mortgage Subsidy Program, Series 1995-I, 6.250%, 4/01/29 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 1.4% 4,720 California Pollution Control Financing Authority, Solid Waste No Opt. Call BBB 4,821,810 Disposal Revenue Bonds, Waste Management, Inc. Project, Series 2002B, 4.450%, 7/01/27 (Alternative Minimum Tax) (Mandatory put 7/01/05) ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 25.9% State of California, Various Purpose General Obligation Bonds: 7,000 5.500%, 9/01/24 9/09 at 101.00 A3 7,111,720 10,000 5.750%, 3/01/27 - MBIA Insured 3/10 at 101.00 AAA 10,531,600 4,700 California State, Various Purpose General Obligation Bonds, 5/10 at 101.00 AAA 4,941,439 Series 2000, 5.625%, 5/01/22 - FGIC Insured California State, General Obligation Bonds, Series 2003: 3,700 5.250%, 2/01/21 8/13 at 100.00 A3 3,741,218 5,000 5.250%, 2/01/22 8/13 at 100.00 A3 5,036,300 5,515 Fresno Unified School District, Fresno County, California, 8/09 at 102.00 AAA 5,569,819 General Obligation Bonds, Election of 1995, Series 2001E, 5.000%, 8/01/25 - FGIC Insured 10,060 Los Angeles, California, General Obligation Bonds, Series 2001A, 9/11 at 100.00 AA 10,222,469 5.000%, 9/01/20 13,020 City of Los Angeles, California, Unified School District, General 7/08 at 101.00 AAA 13,037,837 Obligation Bonds, Election of 1997, 1998 Series B, 5.000%, 7/01/23 - FGIC Insured 6,030 Los Angeles Unified School District, California, General Obligation 7/10 at 100.00 AAA 6,213,372 Bonds, Election of 1997, Series 2000D, 5.375%, 7/01/25 - FGIC Insured 2,200 Oakland Unified School District, Alameda County, California, 8/08 at 101.00 AAA 2,221,142 General Obligation Bonds, Series 2001, 5.125%, 8/01/21 - FSA Insured 2,270 Pajaro Valley Unified School District, Santa Cruz County, 8/13 at 100.00 AAA 2,313,493 California, General Obligation Bonds, Series 2003, 5.000%, 8/01/20 - FSA Insured 11,500 Puerto Rico Public Improvement, General Obligation Refunding No Opt. Call AAA 12,738,780 Bonds, Series 2002A, 5.500%, 7/01/20 - MBIA Insured 2,000 West Contra Costa Unified School District, Contra Costa County, 8/11 at 101.00 AAA 2,010,640 California, General Obligation Bonds, Series 2003C, 5.000%, 8/01/22 - FGIC Insured 3,760 West Contra Costa Unified School District, Contra Costa County, 8/11 at 101.00 AAA 3,780,003 California, General Obligation Bonds, Series 2003B, 5.000%, 8/01/22 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 27.2% 1,030 Avalon Community Improvements Agency, California, Tax 2/04 at 100.00 A- 1,034,398 Allocation Bonds, Community Improvement Project, Series 1991A, 7.250%, 8/01/21 3,765 California State Public Works Board, Department of General 12/12 at 100.00 AAA 4,001,480 Services, Lease Revenue Bonds, Capital East End, Series 2002A, 5.250%, 12/01/16 - AMBAC Insured 5,000 Culver City Redevelopment Financing Authority, California, 11/03 at 102.00 AAA 5,002,050 Tax Allocation Revenue Refunding Bonds, Series 1993, 5.000%, 11/01/23 - AMBAC Insured 3,000 La Quinta Redevelopment Agency, California, Tax Allocation 9/11 at 102.00 AAA 3,027,030 Bonds, Project Area 1, Series 2001, 5.000%, 9/01/21 - AMBAC Insured 3,510 Long Beach Bond Financing Authority, California, Lease Revenue 10/07 at 102.00 AAA 3,456,683 and Refunding Bonds, Civic Center Project, Series 1997A, 5.000%, 10/01/27 - MBIA Insured 16,500 Los Angeles County Metropolitan Transportation Authority, 7/08 at 101.00 AAA 16,345,230 California, Proposition C Sales Tax Revenue Refunding Bonds, Second Senior Lien, Series 1998A, 5.000%, 7/01/23 - AMBAC Insured 3,000 Los Angeles County Metropolitan Transportation Authority, 7/10 at 101.00 AAA 3,045,990 California, Proposition C Sales Tax Revenue Bonds, Second Senior Lien, Series 2000A, 5.250%, 7/01/25 - FGIC Insured 4,750 Montclair Redevelopment Agency, California, Revenue Bonds, 12/10 at 102.00 N/R 4,701,075 Monterey Manor Mobile Home Estates Project, Series 2000, 6.400%, 12/15/30 29 Nuveen California Select Quality Municipal Fund, Inc. (NVC) (continued) Portfolio of INVESTMENTS August 31, 2003 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) Monterey County, California, Certificates of Participation, Master Plan Financing, Series 2001: $ 2,075 5.000%, 8/01/19 - MBIA Insured 8/11 at 100.00 Aaa $ 2,120,526 6,000 5.000%, 8/01/26 - MBIA Insured 8/11 at 100.00 Aaa 5,923,200 2,580 Oakland Redevelopment Agency, California, Subordinate Lien 3/13 at 100.00 AAA 2,789,161 Tax Allocation Bonds, Central District Redevelopment Project, Series 2003, 5.500%, 9/01/18 - FGIC Insured 3,605 Oakland State Building Authority, California, Lease Revenue 4/08 at 101.00 AAA 3,609,831 Bonds, Elihu M. Harris State Office Building, Series 1998A, 5.000%, 4/01/23 - AMBAC Insured 2,280 Ontario Redevelopment Financing Authority, California, Lease 8/11 at 101.00 AAA 2,406,494 Revenue Bonds, Capital Projects, Series 2001, 5.250%, 8/01/18 - AMBAC Insured 2,185 Pleasanton Joint Powers Financing Authority, California, 9/03 at 102.00 Baa1 2,235,211 Reassessment Revenue Bonds, Series 1993A, 6.150%, 9/02/12 360 Riverside Public Financing Authority, California, Revenue Bonds, 2/04 at 100.00 N/R 364,396 Multiple Project Loans, Series 1991A, 8.000%, 2/01/18 2,250 Roseville, California, Special Tax Bonds, Community Facilities 9/09 at 103.00 N/R 2,192,693 District 1 - Crocker, Series 2003, 5.900%, 9/01/24 5,235 San Francisco Redevelopment Financing Authority, California, 2/04 at 103.00 A 5,282,796 Tax Allocation Revenue Bonds, San Francisco Redevelopment Projects, Series 1993C, 5.125%, 8/01/18 2,000 San Francisco State Building Authority, California, Lease Revenue 12/06 at 102.00 AAA 2,133,140 Bonds, San Francisco Civic Center Complex, Series 1996A, 5.250%, 12/01/16 - AMBAC Insured 10,000 San Jose Redevelopment Agency, California, Tax Allocation Bonds, 8/08 at 102.00 A 9,825,800 Merged Area Redevelopment Project, Series 1998, 5.250%, 8/01/29 2,200 San Jose Financing Authority, California, Lease Revenue Refunding 9/11 at 100.00 AAA 2,235,530 Bonds, Convention Center Project, Series 2001F, 5.000%, 9/01/20 - MBIA Insured 4,625 Santa Clara Redevelopment Agency, California, Tax Allocation No Opt. Call AAA 4,818,649 Bonds, Bayshore North Project, Series 2003, 5.000%, 6/01/17 - MBIA Insured 2,000 Vista, California, Mobile Home Park Revenue Bonds, Vista Manor 3/09 at 102.00 N/R 1,830,420 Mobile Home Park Project, Series 1999A, 5.750%, 3/15/29 5,000 West Hollywood, California, Refunding Certificates of Participation, 2/08 at 102.00 AAA 4,944,700 Series 1998, 5.000%, 2/01/25 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 19.3% 10,500 Foothill-Eastern Transportation Corridor Agency, California, Toll 1/14 at 101.00 BBB- 6,963,495 Road Refunding Revenue Bonds, Series 1999, 0.000%, 1/15/29 8,300 Foothill-Eastern Transportation Corridor Agency, California, Toll 1/10 at 100.00 AAA 8,115,657 Road Revenue Bonds, Series 1995A, 5.000%, 1/01/35 - MBIA Insured 7,500 Los Angeles Harbors Department, California, Revenue Bonds, 8/06 at 101.00 AAA 8,236,575 Series 1996, 6.200%, 8/01/25 (Alternative Minimum Tax) - MBIA Insured 1,500 Orange County, California, Airport Revenue Refunding Bonds, 7/13 at 100.00 AAA 1,551,165 John Wayne Airport, Series 2003, 5.000%, 7/01/18 - FSA Insured 8,000 Port of Oakland, California, Revenue Bonds, Series 2000K, 5/10 at 100.00 AAA 8,310,960 5.750%, 11/01/29 (Alternative Minimum Tax) - FGIC Insured 3,450 San Francisco City and County Airports Commission, California, 5/04 at 102.00 AAA 3,622,328 Revenue Bonds, San Francisco International Airport, Series 2, Issue 5, 6.500%, 5/01/24 (Alternative Minimum Tax) - FGIC Insured 20,000 San Francisco City and County Airports Commission, California, 5/10 at 101.00 AAA 20,840,000 Revenue Bonds, San Francisco International Airport, Series 2, Issue 25, 5.750%, 5/01/30 (Alternative Minimum Tax) - FSA Insured 5,000 San Francisco City and County Airports Commission, California, 5/11 at 100.00 AAA 5,284,550 Revenue Refunding Bonds, San Francisco International Airport, Series 2, Issue 27B, 5.250%, 5/01/18 - FGIC Insured 3,665 San Francisco City and County Airports Commission, California, 5/12 at 100.00 AAA 3,732,436 Revenue Refunding Bonds, San Francisco International Airport, Series 2, Issue 28A, 5.250%, 5/01/18 (Alternative Minimum Tax) - MBIA Insured 30 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 11.5% $ 3,000 California Pollution Control Financing Authority, Solid Waste 1/04 at 101.00 Aaa $ 3,527,220 Revenue Bonds, North County Recycling Center, Series 1991A, 6.750%, 7/01/17 1,500 California State Public Works Board, Lease Revenue Bonds, 9/05 at 100.00 A2*** 1,637,490 California State University System, Series 1995A, 6.000%, 9/01/15 (Pre-refunded to 9/01/05) 6,000 Cerritos Public Financing Authority, California, Revenue Bonds, 11/03 at 102.00 A-*** 6,172,260 Los Cerritos Redevelopment Project Loan, Series 1993A, 6.050%, 11/01/20 (Pre-refunded to 11/01/03) 2,110 Contra Costa County, California, GNMA Mortgage-Backed 5/05 at 100.00 AAA 2,524,552 Securities Program, Home Mortgage Revenue Bonds, Series 1989, 7.700%, 11/01/09 (Alternative Minimum Tax) 7,500 Los Angeles County Public Works Financing Authority, California, 10/04 at 102.00 Aa3*** 8,051,250 Revenue Bonds, Regional Park and Open Space District, Series 1994A, 6.000%, 10/01/15 (Pre-refunded to 10/01/04) 1,705 Palm Springs Financing Authority, California, Tax Allocation 8/05 at 100.00 N/R*** 1,882,150 Revenue Bonds, Agency Loans, Series 1991B, 6.800%, 8/01/11 (Pre-refunded to 8/01/05) 10,000 Puerto Rico Highway and Transportation Authority, Highway 7/10 at 101.00 A*** 11,717,000 Revenue Bonds, Series 2000B, 6.000%, 7/01/31 (Pre-refunded to 7/01/10) 4,000 Puerto Rico Infrastructure Financing Authority, Special Obligation 10/10 at 101.00 AAA 4,278,280 Bonds, Series 2000A, 5.500%, 10/01/32 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 18.1% 2,000 Anaheim Public Financing Authority, California, Electric 10/12 at 100.00 AAA 2,108,520 Generation System Revenue Refunding Bonds, Series 2002B, 5.250%, 10/01/18 - FSA Insured 10,350 California Pollution Control Financing Authority, Pollution Control No Opt. Call A+ 11,622,843 Revenue Bonds, San Diego Gas and Electric Company, Series 1991A, 6.800%, 6/01/15 (Alternative Minimum Tax) 9,550 California Pollution Control Financing Authority, Pollution 12/03 at 100.00 BB 9,384,117 Control Revenue Bonds, Southern California Edison Company, Series 1991, 6.900%, 12/01/17 (Alternative Minimum Tax) 9,750 California Department of Water Resources, Power Supply Revenue 5/12 at 101.00 A3 9,845,550 Bonds, Series 2002A, 5.125%, 5/01/18 5,000 Los Angeles Department of Water and Power, California, Power 7/11 at 100.00 AAA 5,270,800 System Revenue Refunding Bonds, Series 2001A-2, 5.375%, 7/01/20 - MBIA Insured 5,225 Los Angeles, California, Revenue Bonds, Sanitation Equipment 2/11 at 100.00 AAA 5,519,011 Charge, Series 2001A, 5.250%, 2/01/18 - FSA Insured 7,000 Merced Irrigation District, California, Revenue Refunding Bonds, 9/05 at 102.00 Baa3 7,335,510 Electric System Project, Series 2001, 6.850%, 9/01/36 4,360 Sacramento Municipal Utility District, California, Electric Revenue 8/12 at 100.00 AAA 4,561,214 Refunding Bonds, Series 2002Q, 5.250%, 8/15/19 - FSA Insured 3,460 Southern California Public Power Authority, Revenue Bonds, 7/13 at 100.00 AAA 3,525,775 Magnolia Power Project, Series 2003-1A, 5.000%, 7/01/20 - AMBAC Insured 3,060 Turlock Irrigation District, California, Electric Revenue Bonds, 1/13 at 100.00 AAA 3,236,440 Series 2003A, 5.000%, 1/01/15 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 15.0% 9,300 Los Angeles, California, Wastewater System Revenue Bonds, 6/08 at 101.00 AAA 9,150,084 Series 1998A, 5.000%, 6/01/28 - FGIC Insured 5,000 Southern California Metropolitan Water District, Water Revenue 1/08 at 101.00 AA 4,837,700 Bonds, Series 1997A, 5.000%, 7/01/26 2,525 Sacramento County Sanitation District Financing Authority, No Opt. Call AAA 2,779,141 California, Revenue Refunding Bonds, Series 2001, 5.500%, 12/01/20 - AMBAC Insured 17,670 San Francisco City and County Public Utilities Commission, 11/11 at 100.00 AAA 17,611,512 California, Water Revenue Bonds, Series 2001A, 5.000%, 11/01/24 - FSA Insured 31 Nuveen California Select Quality Municipal Fund, Inc. (NVC) (continued) Portfolio of INVESTMENTS August 31, 2003 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER (continued) San Francisco City and County Public Utilities Commission, California, Clean Water Revenue Refunding Bonds, Series 2003A: $ 2,120 5.250%, 10/01/19 - MBIA Insured 4/13 at 100.00 AAA $ 2,223,265 2,960 5.250%, 10/01/20 - MBIA Insured 4/13 at 100.00 AAA 3,083,225 Sweetwater Authority, California, Water Revenue Bonds, Series 2002: 2,800 5.500%, 4/01/19 - FSA Insured 4/10 at 101.00 AAA 3,007,060 9,055 5.000%, 4/01/22 - FSA Insured 4/10 at 101.00 AAA 9,097,191 ------------------------------------------------------------------------------------------------------------------------------------ $ 532,415 Total Long-Term Investments (cost $506,918,753) - 152.3% 525,183,518 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 3.4% 11,708,889 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (55.7)% (192,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $344,892,407 ==================================================================================================================== (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares. * Optional Call Provisions (not covered by the report of independent auditors): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings (not covered by the report of independent auditors): Using the higher of Standard & Poor's or Moody's rating. *** Securities are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensures the timely payment of principal and interest. Such securities are normally considered to be equivalent to AAA rated securities. N/R Investment is not rated. See accompanying notes to financial statements. 32 Nuveen California Quality Income Municipal Fund, Inc. (NUC) Portfolio of INVESTMENTS August 31, 2003 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 6.2% $ 4,620 County Tobacco Securitization Agency, California, Tobacco 6/12 at 100.00 Baa2 $ 3,321,503 Settlement Asset-Backed Bonds, Stanislaus County Tobacco Funding Corporation, Series 2002A, 5.500%, 6/01/33 7,325 County Tobacco Securitization Agency, California, Tobacco 6/12 at 100.00 Baa2 5,356,480 Settlement Asset-Backed Bonds, Sonoma County Tobacco Funding Corporation, Series 2002B, 5.500%, 6/01/30 5,000 County Tobacco Securitization Agency, California, Tobacco 6/12 at 100.00 Baa2 3,808,050 Settlement Asset-Backed Bonds, Alameda County Tobacco Asset Securitization Corporation, Series 2002, 5.750%, 6/01/29 9,775 California Statewide Financing Authority, Tobacco Settlement 5/12 at 100.00 Baa2 7,621,470 Asset-Backed Bonds, Pooled Tobacco Securitization Program, Series 2002A, 5.625%, 5/01/29 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 18.9% 8,975 California Educational Facilities Authority, Revenue Bonds, 11/10 at 100.00 Aaa 9,563,850 University of the Pacific, Series 2000, 5.750%, 11/01/30 - MBIA Insured 4,000 California State Public Works Board, Lease Revenue Refunding 3/06 at 102.00 AAA 4,346,320 Bonds, California Community Colleges Projects, Series 1996B, 5.625%, 3/01/19 - AMBAC Insured 6,400 California State University, Systemwide Revenue Bonds, 11/12 at 100.00 AAA 6,496,000 Series 2002A, 5.000%, 11/01/20 - AMBAC Insured 1,000 California Statewide Community Development Authority, Auxiliary 4/06 at 101.00 AAA 1,093,920 Organization Revenue Certificates of Participation, University Corporation - California State University Northridge, Series 1996, 6.000%, 4/01/26 - AMBAC Insured 3,500 University of California, Refunding Certificates of Participation, 11/03 at 102.00 Aa2 3,597,790 Central Chiller Cogeneration Facility, Series 1993, 5.600%, 11/01/20 (Pre-refunded to 11/01/03) 1,615 University of California, Certificates of Participation, San Diego 1/10 at 101.00 Aa2 1,650,433 and Sacramento Campus Projects, Series 2002A, 5.250%, 1/01/21 7,500 University of California, Revenue Bonds, Multiple Purpose 9/08 at 101.00 Aa2 7,545,750 Projects, Series 2000K, 5.300%, 9/01/30 University of California, Revenue Bonds, Research Facilities, Series 2001E: 2,305 5.000%, 9/01/23 - AMBAC Insured 9/09 at 101.00 AAA 2,308,757 5,150 5.000%, 9/01/24 - AMBAC Insured 9/09 at 101.00 AAA 5,133,417 University of California, Revenue Bonds, Multiple Purpose Projects, 2002 Series O: 9,265 5.000%, 9/01/18 - FGIC Insured 9/10 at 101.00 AAA 9,559,812 10,255 5.000%, 9/01/19 - FGIC Insured 9/10 at 101.00 AAA 10,505,222 ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 12.0% 1,750 ABAG Finance Authority for Non-Profit Corporations, California, 4/12 at 100.00 BBB 1,792,613 Insured Revenue Bonds, Sansum-Santa Barbara Medical Foundation Clinic, Series 2002A, 5.500%, 4/01/21 California Health Facilities Financing Authority, Revenue Bonds, Cedars-Sinai Medical Center, Series 1999A: 10,400 6.125%, 12/01/30 12/09 at 101.00 A3 10,945,376 7,700 6.250%, 12/01/34 12/09 at 101.00 A3 8,141,749 4,000 California Health Facilities Financing Authority, Insured Health 11/03 at 102.00 BBB 4,091,320 Facility Revenue Refunding Bonds, Valley Memorial Hospital, Series 1993A, 6.000%, 5/01/17 California Statewide Community Development Authority, Hospital Revenue Certificates of Participation, Cedars-Sinai Medical Center, Series 1992: 1,250 6.500%, 8/01/12 No Opt. Call A3 1,412,375 4,140 6.500%, 8/01/15 2/04 at 101.00 A3 4,195,766 5,355 California Statewide Community Development Authority, Revenue No Opt. Call A 5,605,025 Bonds, Kaiser Permanente System, Series 2002E, 4.700%, 11/01/36 (Mandatory put 6/01/09) 3,110 Loma Linda, California, Hospital Revenue Bonds, Loma Linda 12/03 at 102.00 BB 3,040,274 University Medical Center Project, Series 1993A, 6.500%, 12/01/18 33 Nuveen California Quality Income Municipal Fund, Inc. (NUC) (continued) Portfolio of INVESTMENTS August 31, 2003 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 3.2% $ 5,250 California Housing Finance Agency, Multi-Unit Rental Housing 2/04 at 101.00 Aa3 $ 5,304,443 Revenue Bonds, Series 1992B, 6.700%, 8/01/15 1,000 California Statewide Community Development Authority, Revenue 7/08 at 101.00 BBB 1,041,580 Refunding Bonds, Irvine Apartment Communities Development, Series 1998A, 5.100%, 5/15/25 (Mandatory put 5/17/10) 1,800 Stanton, California, Multifamily Housing Revenue Bonds, 8/07 at 102.00 AAA 1,905,984 Continental Gardens Apartments, Series 1997, 5.625%, 8/01/29 (Alternative Minimum Tax) (Mandatory put 8/01/09) Yolo County Housing Authority, California, Revenue Refunding Bonds, Russell Park Apartments, Series 1992A: 1,000 6.900%, 11/01/08 11/03 at 102.00 Aa2 1,015,910 1,030 7.000%, 11/01/14 11/03 at 102.00 Aa2 1,050,961 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 2.0% 8,220 California Housing Finance Agency, Home Mortgage Revenue 8/09 at 40.45 AAA 2,362,757 Bonds, Series 1999K, 0.000%, 8/01/24 - MBIA Insured 18,020 California Housing Finance Agency, Home Mortgage Revenue 8/10 at 27.19 AAA 3,212,606 Bonds, Series 2000T, 0.000%, 2/01/32 (Alternative Minimum Tax) - MBIA Insured 870 Riverside County, California, Single Family Mortgage Revenue No Opt. Call AAA 879,239 Bonds, GNMA Mortgage-Backed Securities Program, Series 1989B, 7.600%, 11/01/19 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 22.8% 1,900 Azusa Unified School District, Los Angeles County, California, 7/12 at 100.00 AAA 1,995,266 General Obligation Bonds, Series 2002, 5.375%, 7/01/20 - FSA Insured 13,665 State of California, General Obligation Veterans Welfare Bonds, 12/03 at 102.00 A 13,725,399 Series 1997BH, 5.600%, 12/01/32 (Alternative Minimum Tax) 6,085 State of California, General Obligation Veterans Welfare Bonds, 12/06 at 102.00 A 6,177,492 Series 1997BJ, 5.700%, 12/01/32 (Alternative Minimum Tax) 1,500 State of California, General Obligation Various Purpose Bonds, 6/10 at 100.00 A3 1,520,535 Series 2000, 5.500%, 6/01/25 State of California, General Obligation Refunding Bonds, Series 2002: 8,000 5.250%, 2/01/30 2/12 at 100.00 A3 7,815,280 2,000 5.250%, 4/01/32 4/12 at 100.00 A3 1,949,340 State of California, General Obligation Bonds, Series 2003: 2,550 5.000%, 2/01/22 8/13 at 100.00 A3 2,497,317 2,750 5.250%, 2/01/33 2/13 at 100.00 A3 2,679,518 5,440 Coast Community College District, Orange County, California, 8/13 at 100.00 AAA 5,471,498 General Obligation Bonds, Series 2003A Refunding, 5.000%, 8/01/22 - MBIA Insured 1,200 Fremont Union School District, Santa Clara County, California, 9/12 at 100.00 AAA 1,238,184 General Obligation Bonds, Series 2002C, 5.000%, 9/01/18 - FSA Insured 1,370 Fremont-Newark Community College District, Alameda County, 8/11 at 101.00 AAA 1,439,254 California, General Obligation Bonds, Series 2002A, 5.375%, 8/01/20 - MBIA Insured 5,255 Livermore Valley Joint Unified School District, Alameda County, 8/11 at 100.00 AAA 5,271,763 California, General Obligation Bonds, Election of 1999, Series 2001, 5.125%, 8/01/26 - FSA Insured 2,000 Los Angeles Unified School District, California, General 7/10 at 100.00 AAA 2,060,820 Obligation Bonds, Election of 1997, Series 2000D, 5.375%, 7/01/25 - FGIC Insured 1,170 Los Angeles Unified School District, Los Angeles County, California, 7/13 at 100.00 AAA 1,219,327 General Obligation Bonds, Series 2003F, 5.000%, 7/01/17 - FSA Insured 6,760 San Diego Unified School District, San Diego County, California, 7/13 at 101.00 AAA 7,017,218 General Obligation Bonds, Series 2003E, 5.250%, 7/01/21 - FSA Insured 6,865 San Ramon Valley Unified School District, Contra Costa County, 8/13 at 100.00 AAA 6,878,044 California, General Obligation Bonds, Series 2003, 5.000%, 8/01/23 - FSA Insured 1,390 South Pasadena Unified School District, Los Angeles County, 8/13 at 100.00 AAA 1,398,048 California, General Obligation Bonds, Series 2003A, 5.000%, 8/01/22 - FGIC Insured 3,925 West Contra Costa Unified School District, Contra Costa County, 8/11 at 101.00 AAA 3,931,830 California, General Obligation Bonds, Series 2003B, 5.000%, 8/01/23 - FSA Insured 34 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 35.4% $ 1,200 Burbank Public Financing Authority, California, Revenue Bonds, 12/12 at 100.00 AAA $ 1,217,580 West Olive Redevelopment Project, Series 2002, 5.125%, 12/01/22 - AMBAC Insured 3,070 California State Public Works Board, Lease Revenue Bonds, 12/12 at 100.00 AAA 3,262,827 Department of General Services, Capital East End, Series 2002A, 5.250%, 12/01/16 - AMBAC Insured 2,000 California State Public Works Board, Lease Revenue Bonds, No Opt. Call AAA 2,172,800 Department of Corrections, California State Prison of Lassen County - Susanville, Series 1993D, 5.250%, 6/01/15 - FSA Insured 2,030 California State Public Works Board, Lease Revenue Bonds, 3/12 at 100.00 AAA 2,081,055 Department of General Services, Series 2002C, 5.250%, 3/01/21 - AMBAC Insured 1,750 California State Public Works Board, Lease Revenue Bonds, No Opt. Call AAA 1,925,928 Department of Corrections, California State Prison - Madera County II, Series 1993E, 5.500%, 6/01/15 - MBIA Insured Commerce Community Development Commission, California, Tax Allocation Refunding Bonds, Merged Redevelopment Projects, Series 1998A: 1,000 5.650%, 8/01/18 8/08 at 102.00 N/R 1,004,320 2,765 5.700%, 8/01/28 8/08 at 102.00 N/R 2,706,907 3,065 Corona-Norco Unified School District, Riverside County, California, 9/13 at 100.00 AAA 3,200,442 Special Tax Bonds, Community Facilities District 98-1, Series 2003, 5.500%, 9/01/33 (WI, settling 9/10/03) - MBIA Insured Cupertino, California, Certificates of Participation, Refinancing Capital Improvement Project, Series 2002: 1,945 5.000%, 7/01/18 - AMBAC Insured 7/09 at 102.00 AAA 1,998,176 2,040 5.000%, 7/01/19 - AMBAC Insured 7/09 at 102.00 AAA 2,082,289 2,145 5.000%, 7/01/20 - AMBAC Insured 7/09 at 102.00 AAA 2,175,416 2,725 Fresno, California, Certificates of Participation, Street 12/03 at 101.00 A+ 2,782,852 Improvement Project, Series 1991, 6.625%, 12/01/11 1,910 Industry Urban Development Agency, California, Tax Allocation 5/07 at 101.50 AAA 2,050,748 Refunding Bonds, Civic, Recreational and Industrial Redevelopment Project 1, Series 2002, 5.500%, 5/01/19 - MBIA Insured 2,300 Irvine, California, Mobile Home Park Revenue Bonds, Meadows 3/08 at 102.00 N/R 2,214,394 Mobile Home Park Project, Series 1998A, 5.700%, 3/01/18 8,000 Los Angeles County Metropolitan Transportation Authority, 7/10 at 101.00 AAA 8,122,640 California, Proposition C Sales Tax Revenue Bonds, Second Senior Lien, Series 2000A, 5.250%, 7/01/25 - FGIC Insured 5,000 Los Angeles County Metropolitan Transportation Authority, 7/13 at 100.00 AAA 5,255,550 California, Proposition A First Tier Senior Sales Tax Revenue Bonds, Series 2003A, 5.000%, 7/01/16 - FSA Insured 3,005 Monterey County, California, Certificates of Participation, 8/11 at 100.00 Aaa 3,053,020 Master Plan Financing, Series 2001, 5.000%, 8/01/20 - MBIA Insured 14,160 Oakland State Building Authority, California, Lease Revenue 4/08 at 101.00 AAA 14,178,974 Bonds, Elihu M. Harris State Office Building, Series 1998A, 5.000%, 4/01/23 - AMBAC Insured 2,520 Oceanside, California, Mobile Home Park Revenue Bonds, 3/08 at 102.00 N/R 2,325,431 Laguna Vista Mobile Estates Acquisition Project, Series 1998, 5.800%, 3/01/28 15,300 Ontario Redevelopment Financing Authority, San Bernardino County, No Opt. Call AAA 20,177,793 California, Revenue Refunding Bonds, Redevelopment Project 1, Series 1995, 7.400%, 8/01/25 - MBIA Insured 1,500 Orange County Local Transportation Authority, California, Limited No Opt. Call AA+ 1,684,200 Sales Tax Revenue Bonds, Measure M, Series 1992, 6.000%, 2/15/07 5,200 Orange County, California, Recovery Certificates of Participation, 7/06 at 102.00 AAA 5,710,692 Series 1996A, 6.000%, 7/01/26 - MBIA Insured 6,500 Puerto Rico Highway and Transportation Authority, Highway 7/12 at 100.00 A 6,554,990 Revenue Bonds, Series 2002D, 5.375%, 7/01/36 Redding Redevelopment Agency, California, Canby-Hilltop-Cypress Housing Tax Allocation Bonds, Series 2003A: 1,500 5.000%, 9/01/17 - MBIA Insured 9/13 at 100.00 AAA 1,564,185 1,500 5.000%, 9/01/20 - MBIA Insured 9/13 at 100.00 AAA 1,528,980 4,320 Richmond Joint Powers Financing Authority, California, Tax 9/13 at 100.00 AAA 4,436,726 Allocation Bonds, Series 2003A, 5.250%, 9/01/22 - MBIA Insured 3,040 Riverside County, California, Mobile Home Park Revenue Bonds, 3/09 at 102.00 N/R 2,717,061 Bravo Mobile Home Park Project, Series 1999A, 5.900%, 3/20/29 35 Nuveen California Quality Income Municipal Fund, Inc. (NUC) (continued) Portfolio of INVESTMENTS August 31, 2003 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 2,500 San Jose Financing Authority, California, Lease Revenue Refunding 9/11 at 100.00 AAA $ 2,540,375 Bonds, Convention Center Project, Series 2001F, 5.000%, 9/01/20 - MBIA Insured 2,000 San Jose Unified School District, Santa Clara County, California, 6/07 at 101.00 AAA 2,147,880 Certificates of Participation, 5.750%, 6/01/24 - MBIA Insured 2,770 Santa Ana Community Redevelopment Agency, Orange County, 9/13 at 100.00 AAA 2,843,516 California, Tax Allocation Refunding Bonds, South Main Street Redevelopment, Series 2003B, 5.000%, 9/01/19 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 11.1% 11,000 Foothill-Eastern Transportation Corridor Agency, California, 1/14 at 101.00 BBB- 7,295,090 Toll Road Refunding Revenue Bonds, Series 1999, 0.000%, 1/15/29 2,685 Sacramento County, California, Airport System Revenue Bonds, 7/12 at 100.00 AAA 2,771,994 Series 2002A, 5.250%, 7/01/21 - FSA Insured 20,000 San Francisco City and County Airports Commission, California, 5/10 at 101.00 AAA 20,840,000 Revenue Bonds, San Francisco International Airport, Series 2, Issue 25, 5.750%, 5/01/30 (Alternative Minimum Tax) - FSA Insured San Francisco City and County Airports Commission, California, Revenue Refunding Bonds, San Francisco International Airport, Series 2, Issue 28A: 1,480 5.250%, 5/01/17 (Alternative Minimum Tax) - MBIA Insured 5/12 at 100.00 AAA 1,517,710 3,865 5.250%, 5/01/19 (Alternative Minimum Tax) - MBIA Insured 5/12 at 100.00 AAA 3,903,573 ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 20.9% 8,000 California Pollution Control Financing Authority, Solid Waste 1/04 at 101.00 Aaa 9,405,920 Revenue Bonds, North County Recycling Center, Series 1991A, 6.750%, 7/01/17 7,625 California State Public Works Board, Lease Revenue Bonds, 11/04 at 102.00 Aaa 8,303,396 Department of Corrections, California, State Prison at Monterey County - Soledad II, Series 1994A, 7.000%, 11/01/19 (Pre-refunded to 11/01/04) 1,600 California Statewide Community Development Authority, No Opt. Call N/R*** 1,737,616 Certificates of Participation, Insured Hospital Revenue Refunding Bonds, Triad Healthcare, Series 1992, 6.250%, 8/01/06 12,805 Contra Costa County, California, GNMA Mortgage-Backed No Opt. Call AAA 17,564,875 Securities Program, Home Mortgage Revenue Bonds, Series 1988, 8.250%, 6/01/21 (Alternative Minimum Tax) 4,000 Inland Empire Solid Waste Financing Authority, California, No Opt. Call AAA 4,586,480 Revenue Bonds, Landfill Improvement Financing Project, Series 1996B, 6.250%, 8/01/11 (Alternative Minimum Tax) - FSA Insured 3,805 Lodi, California, Revenue Bonds and Certificates of Participation, 1/09 at 101.00 AAA 4,321,300 Series 1999A, 5.500%, 1/15/24 (Pre-refunded to 1/15/09) - MBIA Insured 5,000 Puerto Rico Infrastructure Financing Authority, Special Obligation 10/10 at 101.00 AAA 5,347,850 Bonds, Series 2000A, 5.500%, 10/01/32 13,525 San Bernardino County, California, Single Family Mortgage Revenue No Opt. Call AAA 16,972,387 Bonds, GNMA Mortgage-Backed Securities Program, Series 1989A, 7.750%, 11/01/14 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 15.2% 10,000 California Pollution Control Financing Authority, Pollution Control 12/03 at 100.00 BB 9,826,300 Revenue Bonds, Southern California Edison Company, 1991 Series, 6.900%, 12/01/17 (Alternative Minimum Tax) 5,000 California Pollution Control Financing Authority, Pollution Control 12/03 at 101.00 B3 4,931,850 Revenue Bonds, Pacific Gas and Electric Company, 1992 Series A, 6.625%, 6/01/09 (Alternative Minimum Tax) 9,000 California Department of Water Resources, Power Supply Revenue 5/12 at 101.00 A3 9,088,200 Bonds, Series 2002A, 5.125%, 5/01/18 1,500 Merced Irrigation District, California, Revenue Refunding Bonds, 9/05 at 102.00 Baa3 1,561,260 Electric System Project, Series 2001, 6.500%, 9/01/22 5,000 Merced Irrigation District, California, Revenue Certificates of 9/13 at 102.00 Baa3 4,780,650 Participation, Electric System Project, Series 2003, 5.700%, 9/01/36 3,205 Redlands, California, Refunding Certificates of Participation, 9/03 at 100.00 AAA 3,219,455 Capital Improvement Projects, Series 1992, 6.800%, 3/01/07 - AMBAC Insured 2,410 Sacramento Municipal Utility District, California, Electric Revenue 8/12 at 100.00 AAA 2,489,072 Refunding Bonds, Series 2002Q, 5.250%, 8/15/21 - FSA Insured 36 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES (continued) $ 5,500 Southern California Public Power Authority, Revenue Bonds, No Opt. Call A $ 6,535,265 Multiple Projects, Series 1989, 6.750%, 7/01/11 4,000 Southern California Public Power Authority, Revenue Bonds, 7/13 at 100.00 AAA 4,076,040 Magnolia Power Project, Series 2003-1A, 5.000%, 7/01/20 - AMBAC Insured 3,110 Turlock Irrigation District, California, Certificates of 1/13 at 100.00 AAA 3,060,396 Participation, Series 2003A, 5.000%, 1/01/33 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 3.2% 1,090 Marin Municipal Water District, California, Water Revenue 7/12 at 100.00 AAA 1,141,056 Refunding Bonds, Series 2002, 5.000%, 7/01/16 - AMBAC Insured 500 Norco, California, Refunding Certificates of Participation, Water 10/08 at 102.00 AAA 499,975 and Sewer System Improvement Project, Series 1998, 5.125%, 10/01/28 - AMBAC Insured 5,375 San Francisco City and County Public Utilities Commission, 11/12 at 100.00 AAA 5,507,763 California, Water Revenue Bonds, Series 2002A, 5.000%, 11/01/19 - MBIA Insured Turlock Public Finance Authority, California, Sewer Revenue Bonds, Series 2003A: 1,565 5.000%, 9/15/19 (DD, settling 9/02/03) - FGIC Insured 9/03 at 100.00 AAA 1,606,628 1,650 5.000%, 9/15/20 (DD, settling 9/02/03) - FGIC Insured 9/13 at 100.00 AAA 1,681,940 ------------------------------------------------------------------------------------------------------------------------------------ $ 498,460 Total Long-Term Investments (cost $476,977,040) - 150.9% 492,484,673 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 5.8% 18,795,006 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (56.7)% (185,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $326,279,679 ==================================================================================================================== (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares. * Optional Call Provisions (not covered by the report of independent auditors): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings (not covered by the report of independent auditors): Using the higher of Standard & Poor's or Moody's rating. *** Securities are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensures the timely payment of principal and interest. Such securities are normally considered to be equivalent to AAA rated securities. N/R Investment is not rated. (DD) Security purchased on a delayed delivery basis. (WI) Security purchased on a when-issued basis. See accompanying notes to financial statements. 37 Statement of ASSETS AND LIABILITIES August 31, 2003 CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA INVESTMENT CALIFORNIA CALIFORNIA VALUE PERFORMANCE PLUS OPPORTUNITY QUALITY SELECT QUALITY QUALITY INCOME (NCA) (NCP) (NCO) (NQC) (NVC) (NUC) ------------------------------------------------------------------------------------------------------------------------------------ ASSETS Investments, at market value (cost $230,614,460, $273,853,412, $172,985,635, $291,736,182, $506,918,753 and $476,977,040, respectively) $241,901,723 $282,141,027 $181,695,261 $303,974,706 $525,183,518 $492,484,673 Cash 5,544,297 3,425,705 1,368,561 11,606,212 4,473,199 13,442,090 Receivables: Interest 3,454,474 4,130,599 2,346,194 4,787,318 7,493,147 7,294,569 Investments sold 66,545 10,015,300 3,151,601 -- 210,000 10,142,000 Other assets 9,089 27,779 17,923 28,598 31,105 39,706 ------------------------------------------------------------------------------------------------------------------------------------ Total assets 250,976,128 299,740,410 188,579,540 320,396,834 537,390,969 523,403,038 ------------------------------------------------------------------------------------------------------------------------------------ LIABILITIES Payable for investments purchased -- 2,098,700 -- 3,148,050 -- 11,723,469 Accrued expenses: Management fees 121,241 161,343 103,023 171,963 287,799 274,857 Other 105,933 59,926 35,087 94,965 195,560 107,609 Preferred share dividends payable N/A 11,938 4,077 7,614 15,203 17,424 ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities 227,174 2,331,907 142,187 3,422,592 498,562 12,123,359 ------------------------------------------------------------------------------------------------------------------------------------ Preferred shares, at liquidation value N/A 106,000,000 68,000,000 112,000,000 192,000,000 185,000,000 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $250,748,954 $191,408,503 $120,437,353 $204,974,242 $344,892,407 $326,279,679 ==================================================================================================================================== Common shares outstanding 25,241,808 12,965,742 8,154,681 13,580,232 23,096,654 21,977,428 ==================================================================================================================================== Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) $ 9.93 $ 14.76 $ 14.77 $ 15.09 $ 14.93 $ 14.85 ==================================================================================================================================== NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: ------------------------------------------------------------------------------------------------------------------------------------ Common shares, $.01 par value per share $ 252,418 $ 129,657 $ 81,547 $ 135,802 $ 230,967 $ 219,774 Paid-in surplus 237,578,901 181,322,391 113,661,742 189,659,207 322,047,031 306,132,569 Undistributed net investment income 157,276 1,832,606 1,304,648 2,321,681 3,884,290 3,675,428 Accumulated net realized gain (loss) from investments 1,473,096 (163,766) (3,320,210) 619,028 465,354 744,275 Net unrealized appreciation of investments 11,287,263 8,287,615 8,709,626 12,238,524 18,264,765 15,507,633 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $250,748,954 $191,408,503 $120,437,353 $204,974,242 $344,892,407 $326,279,679 ==================================================================================================================================== Authorized shares: Common 250,000,000 200,000,000 200,000,000 200,000,000 200,000,000 200,000,000 Preferred N/A 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 ==================================================================================================================================== N/A - Fund is not authorized to issue Preferred shares. See accompanying notes to financial statements. 38 Statement of OPERATIONS Year Ended August 31, 2003 CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA INVESTMENT CALIFORNIA CALIFORNIA VALUE PERFORMANCE PLUS OPPORTUNITY QUALITY SELECT QUALITY QUALITY INCOME (NCA) (NCP) (NCO) (NQC) (NVC) (NUC) ------------------------------------------------------------------------------------------------------------------------------------ Investment Income $14,195,763 $15,725,024 $10,028,277 $ 16,987,271 $ 28,644,573 $ 27,759,807 ------------------------------------------------------------------------------------------------------------------------------------ EXPENSES Management fees 1,486,429 1,952,094 1,247,185 2,084,037 3,484,023 3,336,291 Preferred shares - auction fees N/A 265,440 170,283 280,466 480,798 463,270 Preferred shares - dividend disbursing agent fees N/A 30,000 20,000 20,000 30,000 30,000 Shareholders' servicing agent fees and expenses 64,107 35,458 20,612 32,815 46,004 40,848 Custodian's fees and expenses 63,944 75,474 45,549 70,390 128,787 139,002 Directors' fees and expenses 3,593 4,810 2,642 4,565 7,423 7,147 Professional fees 14,935 30,563 14,779 16,094 22,072 23,147 Shareholders' reports - printing and mailing expenses 31,101 26,317 19,229 27,928 32,490 42,421 Stock exchange listing fees 17,003 16,041 11,462 16,066 16,085 16,160 Investor relations expense 18,634 35,822 11,668 21,818 35,544 34,114 Other expenses 11,184 28,059 21,496 20,413 31,710 31,779 ------------------------------------------------------------------------------------------------------------------------------------ Total expenses before custodian fee credit 1,710,930 2,500,078 1,584,905 2,594,592 4,314,936 4,164,179 Custodian fee credit (11,710) (10,005) (8,162) (8,293) (22,033) (39,936) ------------------------------------------------------------------------------------------------------------------------------------ Net expenses 1,699,220 2,490,073 1,576,743 2,586,299 4,292,903 4,124,243 ------------------------------------------------------------------------------------------------------------------------------------ Net investment income 12,496,543 13,234,951 8,451,534 14,400,972 24,351,670 23,635,564 ------------------------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS Net realized gain (loss) from investments 1,473,738 1,004,022 (2,416,823) 594,277 553,846 676,834 Change in net unrealized appreciation (depreciation) of investments (9,461,698) (8,515,354) (1,963,613) (10,261,134) (14,789,814) (19,847,121) ------------------------------------------------------------------------------------------------------------------------------------ Net gain (loss) from investments (7,987,960) (7,511,332) (4,380,436) (9,666,857) (14,235,968) (19,170,287) ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From net investment income N/A (979,590) (606,611) (1,031,502) (1,731,308) (1,526,791) From accumulated net realized gains from investments N/A -- -- (25,327) (25,494) (242,125) ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Preferred shareholders N/A (979,590) (606,611) (1,056,829) (1,756,802) (1,768,916) ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from operations $ 4,508,583 $ 4,744,029 $ 3,464,487 $ 3,677,286 $ 8,358,900 $ 2,696,361 ==================================================================================================================================== N/A - Fund is not authorized to issue Preferred shares. See accompanying notes to financial statements. 39 Statement of CHANGES IN NET ASSETS CALIFORNIA VALUE (NCA) CALIFORNIA PERFORMANCE PLUS (NCP) CALIFORNIA OPPORTUNITY (NCO) ------------------------------ --------------------------------- ---------------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 8/31/03 8/31/02 8/31/03 8/31/02 8/31/03 8/31/02 ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 12,496,543 $ 12,970,900 $ 13,234,951 $ 13,616,212 $ 8,451,534 $ 8,633,716 Net realized gain (loss) from investments 1,473,738 931,061 1,004,022 (1,191,048) (2,416,823) (884,966) Change in net unrealized appreciation (depreciation) of investments (9,461,698) (1,874,743) (8,515,354) 1,899,668 (1,963,613) 852,455 Distributions to Preferred Shareholders: From net investment income N/A N/A (979,590) (1,237,745) (606,611) (799,037) From accumulated net realized gains from investments N/A N/A -- (331,552) -- (180,451) ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from operations 4,508,583 12,027,218 4,744,029 12,755,535 3,464,487 7,621,717 ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (12,869,723) (13,021,072) (11,928,784) (11,571,067) (7,452,565) (7,386,004) From accumulated net realized gains from investments (235,826) -- (1,019) (1,228,860) -- (721,943) ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (13,105,549) (13,021,072) (11,929,803) (12,799,927) (7,452,565) (8,107,947) ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Net proceeds from Common shares issued to shareholders due to reinvestment of distributions -- 195,022 -- 996,765 -- 615,883 ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares (8,596,966) (798,832) (7,185,774) 952,373 (3,988,078) 129,653 Net assets applicable to Common shares at the beginning of year 259,345,920 260,144,752 198,594,277 197,641,904 124,425,431 124,295,778 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of year $250,748,954 $259,345,920 $191,408,503 $198,594,277 $120,437,353 $124,425,431 ==================================================================================================================================== Undistributed net investment income at the end of year $ 157,276 $ 715,310 $ 1,832,606 $ 1,765,348 $ 1,304,648 $ 1,152,354 ==================================================================================================================================== N/A - Fund is not authorized to issue Preferred shares. See accompanying notes to financial statements. 40 CALIFORNIA INVESTMENT CALIFORNIA SELECT CALIFORNIA QUALITY (NQC) QUALITY (NVC) QUALITY INCOME (NUC) ------------------------------ ----------------------------- ----------------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 8/31/03 8/31/02 8/31/03 8/31/02 8/31/03 8/31/02 ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 14,400,972 $ 14,658,460 $ 24,351,670 $ 25,014,840 $ 23,635,564 $ 26,003,615 Net realized gain (loss) from investments 594,277 357,456 553,846 800,399 676,834 2,860,663 Change in net unrealized appreciation (depreciation) of investments (10,261,134) (776,828) (14,789,814) (596,693) (19,847,121) (10,180,699) Distributions to Preferred Shareholders: From net investment income (1,031,502) (1,461,842) (1,731,308) (1,957,398) (1,526,791) (2,239,477) From accumulated net realized gains from investments (25,327) (76,061) (25,494) (1,031,350) (242,125) (497,002) ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from operations 3,677,286 12,701,185 8,358,900 22,229,798 2,696,361 15,947,100 ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (12,711,116) (12,440,677) (21,757,051) (21,024,491) (21,879,825) (21,113,196) From accumulated net realized gains from investments (252,596) (277,480) (341,832) (3,647,612) (2,618,427) (1,793,272) ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (12,963,712) (12,718,157) (22,098,883) (24,672,103) (24,498,252) (22,906,468) ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Net proceeds from Common shares issued to shareholders due to reinvestment of distributions -- 1,056,710 -- 1,756,813 520,494 1,827,004 ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares (9,286,426) 1,039,738 (13,739,983) (685,492) (21,281,397) (5,132,364) Net assets applicable to Common shares at the beginning of year 214,260,668 213,220,930 358,632,390 359,317,882 347,561,076 352,693,440 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of year $204,974,242 $214,260,668 $344,892,407 $358,632,390 $326,279,679 $347,561,076 ==================================================================================================================================== Undistributed net investment income at the end of year $ 2,321,681 $ 1,951,532 $ 3,884,290 $ 3,351,259 $ 3,675,428 $ 3,873,126 ==================================================================================================================================== See accompanying notes to financial statements. 41 Notes to FINANCIAL STATEMENTS 1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES The California Funds (the "Funds") covered in this report and their corresponding Common share New York Stock Exchange symbols are Nuveen California Municipal Value Fund, Inc. (NCA), Nuveen California Performance Plus Municipal Fund, Inc. (NCP), Nuveen California Municipal Market Opportunity Fund, Inc. (NCO), Nuveen California Investment Quality Municipal Fund, Inc. (NQC), Nuveen California Select Quality Municipal Fund, Inc. (NVC) and Nuveen California Quality Income Municipal Fund, Inc. (NUC). The Funds are registered under the Investment Company Act of 1940, as amended, as closed-end, diversified management investment companies. Each Fund seeks to provide current income exempt from both regular federal and California state income taxes by investing primarily in a diversified portfolio of municipal obligations issued by state and local government authorities within the state of California. The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with accounting principles generally accepted in the United States. Securities Valuation The prices of municipal bonds in each Fund's investment portfolio are provided by a pricing service approved by the Fund's Board of Directors. When price quotes are not readily available (which is usually the case for municipal securities), the pricing service establishes fair market value based on yields or prices of municipal bonds of comparable quality, type of issue, coupon, maturity and rating, indications of value from securities dealers, evaluations of anticipated cash flows or collateral and general market conditions. If it is determined that market prices for a security are unavailable or inappropriate, the Board of Directors of the Funds, or its designee, may establish a fair value for the security. Temporary investments in securities that have variable rate and demand features qualifying them as short-term securities are valued at amortized cost, which approximates market value. Securities Transactions Securities transactions are recorded on a trade date basis. Realized gains and losses from such transactions are determined on the specific identification method. Securities purchased or sold on a when-issued or delayed delivery basis may have extended settlement periods. The securities so purchased are subject to market fluctuation during this period. The Funds have instructed the custodian to segregate assets with a current value at least equal to the amount of the when-issued and delayed delivery purchase commitments. At August 31, 2003, California Performance Plus (NCP), California Investment Quality (NQC) and California Quality Income (NUC) had outstanding when-issued and delayed delivery purchase commitments of $2,098,700, $3,148,050 and $6,447,280, respectively. There were no such outstanding purchase commitments in any of the other Funds. Investment Income Interest income, which includes the amortization of premiums and accretion of discounts for financial reporting purposes, is recorded on an accrual basis. Income Taxes Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its net investment income to its shareholders. Therefore, no federal income tax provision is required. Furthermore, each Fund intends to satisfy conditions which will enable interest from municipal securities, which is exempt from regular federal and California state income taxes, to retain such tax-exempt status when distributed to shareholders of the Funds. All monthly tax-exempt income dividends paid during the fiscal year ended August 31, 2003, have been designated Exempt Interest Dividends. Dividends and Distributions to Common Shareholders Dividends from tax-exempt net investment income are declared monthly. Net realized capital gains and/or market discount from investment transactions, if any, are distributed to shareholders not less frequently than annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryforwards. 42 Distributions to Common Shareholders of tax-exempt net investment income, net realized capital gains and/or market discount, if any, are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal income tax regulations, which may differ from accounting principles generally accepted in the United States. Preferred Shares California Value (NCA) is not authorized to issue Preferred shares. The Funds below have issued and outstanding $25,000 stated value Preferred shares. Each Fund's Preferred shares are issued in more than one Series. The dividend rate on each Series may change every seven days, as set pursuant to a dutch auction process by the auction agent, and is payable at or near the end of each rate period. The number of Preferred shares outstanding, by series and in total, for each Fund is as follows: CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA PERFORMANCE CALIFORNIA INVESTMENT SELECT QUALITY PLUS OPPORTUNITY QUALITY QUALITY INCOME (NCP) (NCO) (NQC) (NVC) (NUC) --------------------------------------------------------------------------------------------------------- Number of shares: Series M -- -- 3,600 -- 1,400 Series T 1,800 -- -- 2,400 -- Series W 640 2,200 880 1,680 3,000 Series TH -- -- -- 3,600 -- Series F 1,800 520 -- -- 3,000 --------------------------------------------------------------------------------------------------------- Total 4,240 2,720 4,480 7,680 7,400 ========================================================================================================= Derivative Financial Instruments The Funds may invest in certain derivative financial instruments including futures, forward, swap and option contracts, and other financial instruments with similar characteristics. Although the Funds are authorized to invest in such financial instruments, and may do so in the future, they did not make any such investments during the fiscal year ended August 31, 2003. Custodian Fee Credit Each Fund has an arrangement with the custodian bank whereby certain custodian fees and expenses are reduced by credits earned on each Fund's cash on deposit with the bank. Such deposit arrangements are an alternative to overnight investments. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets applicable to Common shares from operations during the reporting period. Actual results may differ from those estimates. 2. FUND SHARES Transactions in Common shares were as follows: CALIFORNIA CALIFORNIA CALIFORNIA VALUE (NCA) PERFORMANCE PLUS (NCP) OPPORTUNITY (NCO) ----------------------- ----------------------- ----------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 8/31/03 8/31/02 8/31/03 8/31/02 8/31/03 8/31/02 --------------------------------------------------------------------------------------------------------- Shares issued to shareholders due to reinvestment of distributions -- 19,148 -- 66,524 -- 40,630 ========================================================================================================= CALIFORNIA CALIFORNIA CALIFORNIA INVESTMENT QUALITY (NQC) SELECT QUALITY (NVC) QUALITY INCOME (NUC) ------------------------ ----------------------- ----------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 8/31/03 8/31/02 8/31/03 8/31/02 8/31/03 8/31/02 --------------------------------------------------------------------------------------------------------- Shares issued to shareholders due to reinvestment of distributions -- 67,899 -- 114,746 32,183 114,647 ========================================================================================================= 43 Notes to FINANCIAL STATEMENTS (continued) 3. SECURITIES TRANSACTIONS Purchases and sales (including maturities) of investments in long-term municipal securities during the fiscal year ended August 31, 2003, were as follows: CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA PERFORMANCE CALIFORNIA INVESTMENT SELECT QUALITY VALUE PLUS OPPORTUNITY QUALITY QUALITY INCOME (NCA) (NCP) (NCO) (NQC) (NVC) (NUC) ------------------------------------------------------------------------------------------------------------ Purchases $61,205,847 $ 88,934,587 $30,259,039 $84,397,217 $115,088,627 $239,915,819 Sales and maturities 63,210,397 101,895,809 34,923,145 96,048,544 110,400,035 239,255,069 ============================================================================================================ 4. INCOME TAX INFORMATION The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to timing differences in recognizing income on taxable market discount securities and timing differences in recognizing certain gains and losses on security transactions. At August 31, 2003, the cost of investments were as follows: CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA PERFORMANCE CALIFORNIA INVESTMENT SELECT QUALITY VALUE PLUS OPPORTUNITY QUALITY QUALITY INCOME (NCA) (NCP) (NCO) (NQC) (NVC) (NUC) ------------------------------------------------------------------------------------------------------------ Cost of investments $230,353,476 $273,764,843 $172,707,968 $291,250,847 $506,594,140 $476,783,571 ============================================================================================================ Gross unrealized appreciation and gross unrealized depreciation of investments at August 31, 2003, were as follows: CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA PERFORMANCE CALIFORNIA INVESTMENT SELECT QUALITY VALUE PLUS OPPORTUNITY QUALITY QUALITY INCOME (NCA) (NCP) (NCO) (NQC) (NVC) (NUC) ------------------------------------------------------------------------------------------------------------ Gross unrealized: Appreciation $15,827,786 $12,690,465 $11,384,533 $14,117,100 $23,563,056 $23,447,377 Depreciation (4,279,539) (4,314,281) (2,397,240) (1,393,241) (4,973,678) (7,746,275) ------------------------------------------------------------------------------------------------------------ Net unrealized appreciation of investments $11,548,247 $ 8,376,184 $ 8,987,293 $12,723,859 $18,589,378 $15,701,102 ============================================================================================================ 44 The tax components of undistributed net investment income and net realized gains at August 31, 2003, were as follows: CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA PERFORMANCE CALIFORNIA INVESTMENT SELECT QUALITY VALUE PLUS OPPORTUNITY QUALITY QUALITY INCOME (NCA) (NCP) (NCO) (NQC) (NVC) (NUC) ------------------------------------------------------------------------------------------------------------------------ Undistributed net tax-exempt income $ 943,828 $2,195,343 $1,483,909 $2,837,047 $5,179,975 $4,872,371 Undistributed net ordinary income * -- 398,934 61,308 86,536 1,984 451,140 Undistributed net long-term capital gains 1,473,096 2,788 -- 619,028 694,458 744,275 ======================================================================================================================== * Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. The tax character of distributions paid during the fiscal years ended August 31, 2003 and August 31, 2002, was designated for purposes of the dividends paid deduction as follows: CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA PERFORMANCE CALIFORNIA INVESTMENT SELECT QUALITY VALUE PLUS OPPORTUNITY QUALITY QUALITY INCOME 2003 (NCA) (NCP) (NCO) (NQC) (NVC) (NUC) ------------------------------------------------------------------------------------------------------------------------ Distributions from net tax-exempt income $12,835,461 $12,761,551 $8,012,712 $13,711,299 $23,411,429 $23,392,483 Distributions from net ordinary income * 72,124 113,847 43,789 -- -- 62,978 Distributions from net long-term capital gains 235,826 1,019 -- 277,923 367,326 2,797,575 ======================================================================================================================== CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA PERFORMANCE CALIFORNIA INVESTMENT SELECT QUALITY VALUE PLUS OPPORTUNITY QUALITY QUALITY INCOME 2002 (NCA) (NCP) (NCO) (NQC) (NVC) (NUC) ------------------------------------------------------------------------------------------------------------------------ Distributions from net tax-exempt income $13,020,248 $12,807,468 $8,165,338 $13,898,261 $22,973,189 $23,237,953 Distributions from net ordinary income * -- -- 55,848 -- 6,000 171,733 Distributions from net long-term capital gains -- 1,560,412 862,522 353,541 4,672,962 2,154,469 ======================================================================================================================== * Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. At August 31, 2003, California Opportunity (NCO) had an unused capital loss carryforward of $908,397 available to be applied against future capital gains, if any. If not applied, the carryforward will expire in the year 2011. California Opportunity (NCO) has elected to defer $2,302,131 of net realized losses from investments incurred from November 1, 2002 through August 31, 2003 ("post-October losses") in accordance with Federal income tax regulations. Post-October losses are treated as having arisen in the following year. 45 Notes to FINANCIAL STATEMENTS (continued) 5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES Under California Value's (NCA) investment management agreement with Nuveen Advisory Corp. (the "Adviser"), a wholly owned subsidiary of Nuveen Investments, Inc. (formerly, The John Nuveen Company), the Fund pays an annual management fee, payable monthly of .35% of the average daily net assets of the Fund, as well as 4.125% of the gross interest income of the Fund. Under the Funds' (excluding California Value (NCA)) investment management agreements with the Adviser, each Fund pays an annual management fee, payable monthly, at the rates set forth below, which are based upon the average daily net assets (including net assets attributable to Preferred shares) of each Fund as follows: AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS ATTRIBUTABLE TO PREFERRED SHARES) MANAGEMENT FEE -------------------------------------------------------------------------------- For the first $125 million .6500% For the next $125 million .6375 For the next $250 million .6250 For the next $500 million .6125 For the next $1 billion .6000 For the next $3 billion .5875 For net assets over $5 billion .5750 ================================================================================ The management fee compensates the Adviser for overall investment advisory and administrative services and general office facilities. The Funds pay no compensation directly to those of its Directors who are affiliated with the Adviser or to their officers, all of whom receive remuneration for their services to the Funds from the Adviser. 6. SUBSEQUENT EVENT - DISTRIBUTIONS TO COMMON SHAREHOLDERS The Funds declared Common share dividend distributions from their tax-exempt net investment income which were paid on October 1, 2003, to shareholders of record on September 15, 2003, as follows: CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA PERFORMANCE CALIFORNIA INVESTMENT SELECT QUALITY VALUE PLUS OPPORTUNITY QUALITY QUALITY INCOME (NCA) (NCP) (NCO) (NQC) (NVC) (NUC) --------------------------------------------------------------------------------------------------------- Dividend per share $.0400 $.0775 $.0780 $.0795 $.0805 $.0830 ========================================================================================================= 46 Financial HIGHLIGHTS 47 Financial HIGHLIGHTS Selected data for a Common share outstanding throughout each year: Investment Operations Less Distributions --------------------------------------------------------------- ------------------------------- Distributions Distributions from Net from Net Beginning Net Investment Capital Investment Capital Common Realized/ Income to Gains to Income to Gains to Share Net Unrealized Preferred Preferred Common Common Net Asset Investment Investment Share- Share- Share- Share- Value Income Gain (Loss) holders+ holders+ Total holders holders Total ==================================================================================================================================== CALIFORNIA VALUE (NCA) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 8/31: 2003 $10.27 $ .50 $ (.32) $ N/A $ N/A $ .18 $ (.51) $(.01) $ (.52) 2002 10.31 .51 (.03) N/A N/A .48 (.52) -- (.52) 2001 9.85 .51 .47 N/A N/A .98 (.52) -- (.52) 2000 9.73 .51 .12 N/A N/A .63 (.51) -- (.51) 1999 10.38 .50 (.60) N/A N/A (.10) (.50) (.05) (.55) CALIFORNIA PERFORMANCE PLUS (NCP) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 8/31: 2003 15.32 1.02 (.58) (.08) -- .36 (.92) -- (.92) 2002 15.32 1.05 .07 (.10) (.03) .99 (.89) (.10) (.99) 2001 14.96 1.12 .44 (.25) (.01) 1.30 (.90) (.04) (.94) 2000 14.85 1.22 .11 (.26) -- 1.07 (.96) -- (.96) 1999 15.98 1.20 (1.05) (.20) (.01) (.06) (1.00) (.05) (1.05) CALIFORNIA OPPORTUNITY (NCO) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 8/31: 2003 15.26 1.04 (.55) (.07) -- .42 (.91) -- (.91) 2002 15.32 1.06 -- (.10) (.02) .94 (.91) (.09) (1.00) 2001 14.97 1.14 .48 (.23) (.03) 1.36 (.92) (.09) (1.01) 2000 15.06 1.25 (.07) (.29) -- .89 (.98) -- (.98) 1999 16.48 1.21 (1.25) (.19) (.03) (.26) (1.01) (.12) (1.13) ==================================================================================================================================== Total Returns ----------------- Based Offering on Costs and Ending Common Preferred Common Based Share Share Share Ending on Net Underwriting Net Asset Market Market Asset Discounts Value Value Value* Value* ======================================================================================= CALIFORNIA VALUE (NCA) --------------------------------------------------------------------------------------- Year Ended 8/31: 2003 $-- $ 9.93 $ 9.1000 (3.55)% 1.73% 2002 -- 10.27 9.9500 6.61 4.80 2001 -- 10.31 9.8300 11.41 10.20 2000 -- 9.85 9.3125 6.80 6.80 1999 -- 9.73 9.2500 (.43) (1.13) CALIFORNIA PERFORMANCE PLUS (NCP) --------------------------------------------------------------------------------------- Year Ended 8/31: 2003 -- 14.76 13.9000 (1.30) 2.30 2002 -- 15.32 15.0000 1.11 6.84 2001 -- 15.32 15.8500 7.88 9.13 2000 -- 14.96 15.6250 (1.56) 7.68 1999 (.02) 14.85 16.9375 (.12) (.66) CALIFORNIA OPPORTUNITY (NCO) --------------------------------------------------------------------------------------- Year Ended 8/31: 2003 -- 14.77 13.9500 (2.45) 2.73 2002 -- 15.26 15.2200 (.26) 6.51 2001 -- 15.32 16.3000 8.65 9.51 2000 -- 14.97 16.0000 1.14 6.33 1999 (.03) 15.06 16.8750 2.10 (1.97) ======================================================================================= Ratios/Supplemental Data --------------------------------------------------------------------------------------------------- Before Credit After Credit** ----------------------------- -------------------------------- Ratio of Net Ratio of Net Ratio of Investment Ratio of Investment Ending Expenses Income to Expenses Income to Net to Average Average to Average Average Assets Net Assets Net Assets Net Assets Net Assets Applicable Applicable Applicable Applicable Applicable Portfolio to Common to Common to Common to Common to Common Turnover Shares (000) Shares++ Shares++ Shares++ Shares++ Rate =============================================================================================================================== CALIFORNIA VALUE (NCA) ------------------------------------------------------------------------------------------------------------------------------- Year Ended 8/31: 2003 $250,749 .66% 4.84% .66% 4.85% 24% 2002 259,346 .68 5.06 .68 5.07 4 2001 260,145 .70 5.14 .69 5.15 7 2000 248,375 .70 5.42 .69 5.43 36 1999 245,456 .69 4.89 .69 4.90 35 CALIFORNIA PERFORMANCE PLUS (NCP) ------------------------------------------------------------------------------------------------------------------------------- Year Ended 8/31: 2003 191,409 1.26 6.65 1.25 6.66 30 2002 198,594 1.28 7.04 1.27 7.05 11 2001 197,642 1.26 7.57 1.25 7.59 27 2000 191,957 1.30 8.48 1.28 8.49 38 1999 189,328 1.19 7.67 1.19 7.67 26 CALIFORNIA OPPORTUNITY (NCO) ------------------------------------------------------------------------------------------------------------------------------- Year Ended 8/31: 2003 120,437 1.27 6.74 1.26 6.75 16 2002 124,425 1.30 7.13 1.29 7.14 11 2001 124,296 1.30 7.68 1.28 7.69 31 2000 120,794 1.29 8.62 1.28 8.64 24 1999 120,856 1.19 7.50 1.18 7.51 37 =============================================================================================================================== Preferred Shares at End of Period ------------------------------------------- Aggregate Liquidation Amount and Market Asset Outstanding Value Coverage (000) Per Share Per Share ======================================================================= CALIFORNIA VALUE (NCA) ----------------------------------------------------------------------- Year Ended 8/31: 2003 $ N/A $ N/A $ N/A 2002 N/A N/A N/A 2001 N/A N/A N/A 2000 N/A N/A N/A 1999 N/A N/A N/A CALIFORNIA PERFORMANCE PLUS (NCP) ----------------------------------------------------------------------- Year Ended 8/31: 2003 106,000 25,000 70,144 2002 106,000 25,000 71,838 2001 106,000 25,000 71,614 2000 106,000 25,000 70,273 1999 106,000 25,000 69,653 CALIFORNIA OPPORTUNITY (NCO) ----------------------------------------------------------------------- Year Ended 8/31: 2003 68,000 25,000 69,278 2002 68,000 25,000 70,745 2001 68,000 25,000 70,697 2000 68,000 25,000 69,410 1999 68,000 25,000 69,432 ======================================================================= N/A Fund is not authorized to issue Preferred shares. * Total Investment Return on Market Value is the combination of reinvested dividend income, reinvested capital gains distributions, if any, and changes in stock price per share. Total Return on Common Share Net Asset Value is the combination of reinvested dividend income, reinvested capital gains distributions, if any, and changes in Common share net asset value per share. Total returns are not annualized. ** After custodian fee credit, where applicable. + The amounts shown are based on Common share equivalents. ++ Ratios do not reflect the effect of dividend payments to Preferred shareholders; income ratios reflect income earned on assets attributable to Preferred shares, where applicable. See accompanying notes to financial statements. 48-49 SPREAD Financial HIGHLIGHTS (continued) Selected data for a Common share outstanding throughout each year: Investment Operations Less Distributions --------------------------------------------------------------- ------------------------------- Distributions Distributions from Net from Net Beginning Net Investment Capital Investment Capital Common Realized/ Income to Gains to Income to Gains to Share Net Unrealized Preferred Preferred Common Common Net Asset Investment Investment Share- Share- Share- Share- Value Income Gain (Loss) holders+ holders+ Total holders holders Total ==================================================================================================================================== CALIFORNIA INVESTMENT QUALITY (NQC) Year Ended 8/31: 2003 $15.78 $1.06 $ (.71) $(.08) $-- $ .27 $(.94) $(.02) $ (.96) 2002 15.78 1.08 (.02) (.11) (.01) .94 (.92) (.02) (.94) 2001 14.83 1.15 .97 (.25) -- 1.87 (.92) -- (.92) 2000 14.83 1.24 (.04) (.27) -- .93 (.93) -- (.93) 1999 16.03 1.15 (1.14) (.19) (.01) (.19) (.95) (.03) (.98) CALIFORNIA SELECT QUALITY (NVC) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 8/31: 2003 15.53 1.05 (.63) (.07) -- .35 (.94) (.01) (.95) 2002 15.63 1.08 .01 (.08) (.04) .97 (.91) (.16) (1.07) 2001 14.90 1.18 .72 (.26) -- 1.64 (.91) -- (.91) 2000 14.80 1.21 .11 (.28) -- 1.04 (.94) -- (.94) 1999 16.02 1.15 (1.09) (.18) (.02) (.14) (.95) (.11) (1.06) CALIFORNIA QUALITY INCOME (NUC) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 8/31: 2003 15.84 1.08 (.87) (.07) (.01) .13 (1.00) (.12) (1.12) 2002 16.16 1.19 (.35) (.10) (.02) .72 (.96) (.08) (1.04) 2001 15.41 1.21 .75 (.26) -- 1.70 (.94) (.01) (.95) 2000 15.28 1.23 .16 (.29) -- 1.10 (.97) -- (.97) 1999 16.37 1.17 (1.04) (.20) -- (.07) (.98) (.02) (1.00) ==================================================================================================================================== Total Returns ----------------- Based Offering on Costs and Ending Common Preferred Common Based Share Share Share Ending on Net Underwriting Net Asset Market Market Asset Discounts Value Value Value* Value* ======================================================================================= CALIFORNIA INVESTMENT QUALITY (NQC) Year Ended 8/31: 2003 $ -- $15.09 $14.6100 .29% 1.60% 2002 -- 15.78 15.5200 (.55) 6.28 2001 -- 15.78 16.5800 12.54 13.09 2000 -- 14.83 15.6250 2.91 6.69 1999 (.03) 14.83 16.1875 1.67 (1.54) CALIFORNIA SELECT QUALITY (NVC) --------------------------------------------------------------------------------------- Year Ended 8/31: 2003 -- 14.93 14.1400 (2.78) 2.24 2002 -- 15.53 15.5100 2.79 6.61 2001 -- 15.63 16.1800 10.70 11.43 2000 -- 14.90 15.5000 2.96 7.47 1999 (.02) 14.80 16.0625 2.15 (1.20) CALIFORNIA QUALITY INCOME (NUC) --------------------------------------------------------------------------------------- Year Ended 8/31: 2003 -- 14.85 14.6700 (2.38) .71 2002 -- 15.84 16.1400 4.15 4.79 2001 -- 16.16 16.5500 8.51 11.44 2000 -- 15.41 16.1875 3.83 7.64 1999 (.02) 15.28 16.6250 1.37 (.72) ======================================================================================= Ratios/Supplemental Data --------------------------------------------------------------------------------------------------- Before Credit After Credit** ----------------------------- -------------------------------- Ratio of Net Ratio of Net Ratio of Investment Ratio of Investment Ending Expenses Income to Expenses Income to Net to Average Average to Average Average Assets Net Assets Net Assets Net Assets Net Assets Applicable Applicable Applicable Applicable Applicable Portfolio to Common to Common to Common to Common to Common Turnover Shares (000) Shares++ Shares++ Shares++ Shares++ Rate ============================================================================================================================ CALIFORNIA INVESTMENT QUALITY (NQC) Year Ended 8/31: 2003 $204,974 1.21% 6.73% 1.21% 6.73% 26% 2002 214,261 1.25 7.03 1.23 7.04 11 2001 213,221 1.25 7.64 1.23 7.65 34 2000 199,258 1.25 8.65 1.24 8.66 18 1999 198,360 1.19 7.28 1.19 7.29 18 CALIFORNIA SELECT QUALITY (NVC) ---------------------------------------------------------------------------------------------------------------------------- Year Ended 8/31: 2003 344,892 1.20 6.78 1.20 6.78 20 2002 358,632 1.23 7.14 1.22 7.15 19 2001 359,318 1.24 7.81 1.22 7.83 29 2000 340,791 1.27 8.39 1.25 8.40 20 1999 337,344 1.14 7.35 1.13 7.35 7 CALIFORNIA QUALITY INCOME (NUC) ---------------------------------------------------------------------------------------------------------------------------- Year Ended 8/31: 2003 326,280 1.22 6.90 1.21 6.91 46 2002 347,561 1.23 7.58 1.22 7.59 22 2001 352,693 1.23 7.77 1.21 7.78 18 2000 335,148 1.22 8.28 1.21 8.29 21 1999 331,062 1.14 7.26 1.13 7.26 11 ============================================================================================================================ Preferred Shares at End of Period ------------------------------------------- Aggregate Liquidation Amount and Market Asset Outstanding Value Coverage (000) Per Share Per Share ==================================================================== CALIFORNIA INVESTMENT QUALITY (NQC) Year Ended 8/31: 2003 $112,000 $25,000 $70,753 2002 112,000 25,000 72,826 2001 112,000 25,000 72,594 2000 112,000 25,000 69,477 1999 112,000 25,000 69,277 CALIFORNIA SELECT QUALITY (NVC) -------------------------------------------------------------------- Year Ended 8/31: 2003 192,000 25,000 69,908 2002 192,000 25,000 71,697 2001 192,000 25,000 71,786 2000 192,000 25,000 69,374 1999 192,000 25,000 68,925 CALIFORNIA QUALITY INCOME (NUC) -------------------------------------------------------------------- Year Ended 8/31: 2003 185,000 25,000 69,092 2002 185,000 25,000 71,968 2001 185,000 25,000 72,661 2000 185,000 25,000 70,290 1999 185,000 25,000 69,738 ==================================================================== * Total Investment Return on Market Value is the combination of reinvested dividend income, reinvested capital gains distributions, if any, and changes in stock price per share. Total Return on Common Share Net Asset Value is the combination of reinvested dividend income, reinvested capital gains distributions, if any, and changes in Common share net asset value per share. Total returns are not annualized. ** After custodian fee credit, where applicable. + The amounts shown are based on Common share equivalents. ++ Ratios do not reflect the effect of dividend payments to Preferred shareholders; income ratios reflect income earned on assets attributable to Preferred shares, where applicable. See accompanying notes to financial statements. 50-51 SPREAD Directors AND OFFICERS The management of the Funds, including general supervision of the duties performed for the Funds by the Adviser, is the responsibility of the Board of Directors of the Funds. The number of directors of the Funds is currently set at eight. None of the directors who are not "interested" persons of the Funds has ever been a director or employee of, or consultant to, Nuveen or its affiliates. The names and business addresses of the directors and officers of the Funds, their principal occupations and other affiliations during the past five years, the number of portfolios each oversees and other directorships they hold are set forth below. NUMBER OF PORTFOLIOS IN FUND YEAR FIRST PRINCIPAL OCCUPATION(S) COMPLEX NAME, BIRTHDATE POSITION(S) HELD ELECTED OR INCLUDING OTHER DIRECTORSHIPS OVERSEEN BY AND ADDRESS WITH THE FUNDS APPOINTED(2) DURING PAST 5 YEARS DIRECTOR ------------------------------------------------------------------------------------------------------------------------------------ DIRECTOR WHO IS AN INTERESTED PERSON OF THE FUNDS: ------------------------------------------------------------------------------------------------------------------------------------ Timothy R. Schwertfeger (1) Chairman of the 1994 Chairman and Director (since 1996) of Nuveen 141 3/28/49 Board and Investments, Inc. and Nuveen Investments, LLC; 333 W. Wacker Drive Director Director (since 1992) and Chairman (since 1996) of Chicago, IL 60606 Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp.; Chairman and Director (since 1997) of Nuveen Asset Management, Inc.; Director (since 1996) of Institutional Capital Corporation; Chairman and Director (since 1999) of Rittenhouse Asset Management, Inc.; Chairman of Nuveen Investments Advisers Inc. (since 2002). DIRECTORS WHO ARE NOT INTERESTED PERSONS OF THE FUNDS: ------------------------------------------------------------------------------------------------------------------------------------ William E. Bennett Director 2001 Private Investor; previously, President and Chief 141 10/16/46 Executive Officer, Draper & Kramer, Inc., a private 333 W. Wacker Drive company that handles mortgage banking, real estate Chicago, IL 60606 development, pension advisory and real estate management (1995-1998). Prior thereto, Executive Vice President and Chief Credit Officer of First Chicago Corporation and its principal subsidiary, The First National Bank of Chicago. ------------------------------------------------------------------------------------------------------------------------------------ Robert P. Bremner Director 1997 Private Investor and Management Consultant. 135 8/22/40 333 W. Wacker Drive Chicago, IL 60606 ------------------------------------------------------------------------------------------------------------------------------------ Lawrence H. Brown Director 1993 Retired (since 1989) as Senior Vice President of The 135 7/29/34 Northern Trust Company; Director of the United Way of 333 W. Wacker Drive Highland Park-Highwood (since 2002). Chicago, IL 60606 ------------------------------------------------------------------------------------------------------------------------------------ Anne E. Impellizzeri Director 1994 Retired, formerly, Executive Director (since 1998) 135 1/26/33 of Manitoga/The Russel Wright Design Center; prior 333 W. Wacker Drive thereto, President and Chief Executive Officer of Chicago, IL 60606 Blanton-Peale Institute (since 1990); prior thereto, Vice President, Metropolitan Life Insurance Co. ------------------------------------------------------------------------------------------------------------------------------------ Peter R. Sawers Director 1991 Adjunct Professor of Business and Economics, 135 4/3/33 University of Dubuque, Iowa; formerly (1991-2000) 333 W. Wacker Drive Adjunct Professor, Lake Forest Graduate School of Chicago, IL 60606 Management, Lake Forest, Illinois; prior thereto, Executive Director, Towers Perrin Australia, a management consulting firm; Chartered Financial Analyst; Certified Management Consultant; Director, Executive Service Corps of Chicago, a not-for-profit organization. ------------------------------------------------------------------------------------------------------------------------------------ William J. Schneider Director 1997 Senior Partner and Chief Operating Officer, 135 9/24/44 Miller-Valentine Group, Vice President, 333 W. Wacker Drive Miller-Valentine Realty, a construction company; Chicago, IL 60606 Chair, MiamiValley Hospital; Chair, Dayton Development Coalition; formerly, Member, Community Advisory Board, National City Bank, Dayton, Ohio and Business Advisory Council, Cleveland Federal Reserve Bank. ------------------------------------------------------------------------------------------------------------------------------------ Judith M. Stockdale Director 1997 Executive Director, Gaylord and Dorothy Donnelley 135 12/29/47 Foundation (since 1994); prior thereto, Executive 333 W. Wacker Drive Director, Great Lakes Protection Fund (from 1990 Chicago, IL 60606 to 1994). 52 NUMBER OF PORTFOLIOS IN FUND YEAR FIRST COMPLEX NAME, BIRTHDATE POSITION(S) HELD ELECTED OR PRINCIPAL OCCUPATION(S) OVERSEEN AND ADDRESS WITH THE FUNDS APPOINTED (3) DURING PAST 5 YEARS BY OFFICER ------------------------------------------------------------------------------------------------------------------------------------ OFFICERS OF THE FUNDS: ------------------------------------------------------------------------------------------------------------------------------------ Gifford R. Zimmerman Chief 1988 Managing Director (since 2002), Assistant Secretary 141 9/9/56 Administrative and Associate General Counsel, formerly, Vice 333 W. Wacker Drive Officer President and Assistant General Counsel of Nuveen Chicago, IL 60606 Investments, LLC; Managing Director (since 2002), General Counsel and Assistant Secretary, formerly, Vice President of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp.; Managing Director (since 2002), Assistant Secretary and Associate General Counsel, formerly, Vice President (since 2000), of Nuveen Asset Management, Inc.; Assistant Secretary of Nuveen Investments, Inc. (since 1994); Assistant Secretary of NWQ Investment Management Company, LLC (since 2002); Vice President and Assistant Secretary of Nuveen Investments Advisers Inc. (since 2002); Managing Director, Associate General Counsel and Assistant Secretary of Rittenhouse Asset Management, Inc. (since May 2003); Chartered Financial Analyst. ------------------------------------------------------------------------------------------------------------------------------------ Michael T. Atkinson Vice President 2000 Vice President (since 2002), formerly, Assistant 141 2/3/66 and Assistant Vice President (since 2000), previously, Associate of 333 W. Wacker Drive Secretary Nuveen Investments, LLC. Chicago, IL 60606 ------------------------------------------------------------------------------------------------------------------------------------ Paul L. Brennan Vice President 1999 Vice President (since 2002), formerly, Assistant 127 11/10/66 Vice President (since 1997), of Nuveen Advisory Corp.; 333 W. Wacker Drive prior thereto, portfolio manager of Flagship Financial Chicago, IL 60606 Inc.; Chartered Financial Analyst and Certified Public Accountant. ------------------------------------------------------------------------------------------------------------------------------------ Peter H. D'Arrigo Vice President 1999 Vice President of Nuveen Investments, LLC (since 141 11/28/67 and Treasurer 1999), prior thereto, Assistant Vice President (since 333 W. Wacker Drive 1997); Vice President and Treasurer of Nuveen Chicago, IL 60606 Investments, Inc. (since 1999); Vice President and Treasurer of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp. (since 1999); Vice President and Treasurer of Nuveen Asset Management, Inc. (since 2002) and of Nuveen Investments Advisers Inc. (since 2002); Assistant Treasurer of NWQ Investment Management Company, LLC (since 2002); Chartered Financial Analyst. ------------------------------------------------------------------------------------------------------------------------------------ Susan M. DeSanto Vice President 2001 Vice President of Nuveen Advisory Corp. (since 2001); 141 9/8/54 previously, Vice President of Van Kampen Investment 333 W. Wacker Drive Advisory Corp. (since 1998); Vice President of Nuveen Chicago, IL 60606 Institutional Advisory Corp. (since 2002); prior thereto, Assistant Vice President of Van Kampen Investment Advisory Corp. (since 1994). ------------------------------------------------------------------------------------------------------------------------------------ Jessica R. Droeger Vice President 2000 Vice President (since 2002) and Assistant General 141 9/24/64 and Secretary Counsel (since 1998); formerly, Assistant Vice 333 W. Wacker Drive President (since 1998) of Nuveen Investments, LLC; Chicago, IL 60606 Vice President (since 2002) and Assistant Secretary (since 1998), formerly Assistant Vice President of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp. 53 Directors AND OFFICERS (continued) NUMBER OF PORTFOLIOS IN FUND YEAR FIRST COMPLEX NAME, BIRTHDATE POSITION(S) HELD ELECTED OR PRINCIPAL OCCUPATION(S) OVERSEEN AND ADDRESS WITH THE FUNDS APPOINTED (3) DURING PAST 5 YEARS BY OFFICER ------------------------------------------------------------------------------------------------------------------------------------ OFFICERS OF THE FUNDS (CONTINUED): ------------------------------------------------------------------------------------------------------------------------------------ Lorna C. Ferguson Vice President 1998 Vice President of Nuveen Investments, LLC; Vice 141 10/24/45 President (since 1998) of Nuveen Advisory Corp. and 333 W. Wacker Drive Nuveen Institutional Advisory Corp. Chicago, IL 60606 ------------------------------------------------------------------------------------------------------------------------------------ William M. Fitzgerald Vice President 1995 Managing Director (since 2002) of Nuveen Investments, 141 3/2/64 LLC; Managing Director (since 2001), formerly Vice 333 W. Wacker Drive President of Nuveen Advisory Corp. and Nuveen Chicago, IL 60606 Institutional Advisory Corp. (since 1995); Managing Director of Nuveen Asset Management, Inc. (since 2001); Vice President of Nuveen Investment Advisers Inc. (since 2002); Chartered Financial Analyst. ------------------------------------------------------------------------------------------------------------------------------------ Stephen D. Foy Vice President 1998 Vice President (since 1993) and Funds Controller 141 5/31/54 and Controller (since 1998) of Nuveen Investments, LLC and Vice 333 W. Wacker Drive President and Funds Controller (since 1998) of Nuveen Chicago, IL 60606 Investments, Inc.; Certified Public Accountant. ------------------------------------------------------------------------------------------------------------------------------------ J. Thomas Futrell Vice President 1988 Vice President of Nuveen Advisory Corp.; 127 7/5/55 Chartered Financial Analyst. 333 W. Wacker Drive Chicago, IL 60606 ------------------------------------------------------------------------------------------------------------------------------------ Richard A. Huber Vice President 1997 Vice President of Nuveen Institutional Advisory Corp. 127 3/26/63 (since 1998) and Nuveen Advisory Corp. (since 1997); 333 W. Wacker Drive prior thereto, Vice President and Portfolio Manager of Chicago, IL 60606 Flagship Financial, Inc. ------------------------------------------------------------------------------------------------------------------------------------ Steven J. Krupa Vice President 1990 Vice President of Nuveen Advisory Corp. 127 8/21/57 333 W. Wacker Drive Chicago, IL 60606 ------------------------------------------------------------------------------------------------------------------------------------ David J. Lamb Vice President 2000 Vice President (since 2000) of Nuveen Investments, 141 3/22/63 LLC, previously Assistant Vice President (since 1999); 333 W. Wacker Drive prior thereto, Associate of Nuveen Investments, LLC; Chicago, IL 60606 Certified Public Accountant. ------------------------------------------------------------------------------------------------------------------------------------ Tina M. Lazar Vice President 2002 Vice President (since 1999), previously, Assistant 141 8/27/61 Vice President (since 1993) of Nuveen Investments, LLC. 333 W. Wacker Drive Chicago, IL 60606 ------------------------------------------------------------------------------------------------------------------------------------ Larry W. Martin Vice President 1988 Vice President, Assistant Secretary and Assistant 141 7/27/51 and Assistant General Counsel of Nuveen Investments, LLC; Vice 333 W. Wacker Drive Secretary President and Assistant Secretary of Nuveen Advisory Chicago, IL 60606 Corp. and Nuveen Institutional Advisory Corp.; Assistant Secretary of Nuveen Investments, Inc. and (since 1997) Nuveen Asset Management, Inc.; Vice President (since 2000), Assistant Secretary and Assistant General Counsel (since 1998) of Rittenhouse Asset Management, Inc.; Vice President and Assistant Secretary of Nuveen Investments Advisers Inc. (since 2002); Assistant Secretary of NWQ Investment Management Company, LLC (since 2002). 54 NUMBER OF PORTFOLIOS IN FUND YEAR FIRST COMPLEX NAME, BIRTHDATE POSITION(S) HELD ELECTED OR PRINCIPAL OCCUPATION(S) OVERSEEN AND ADDRESS WITH THE FUNDS APPOINTED (3) DURING PAST 5 YEARS BY OFFICER ------------------------------------------------------------------------------------------------------------------------------------ OFFICERS OF THE FUNDS (CONTINUED): ------------------------------------------------------------------------------------------------------------------------------------ John V. Miller Vice President 2003 Vice President (since 2003), previously, Assistant 127 4/10/67 Vice President (since 1999), prior thereto, credit 333 W. Wacker Drive analyst (since 1996) of Nuveen Advisory Corp.; Chicago, IL 60606 Chartered Financial Analyst. ------------------------------------------------------------------------------------------------------------------------------------ Edward F. Neild, IV Vice President 1996 Managing Director (since 2002) of Nuveen Investments, 141 7/7/65 LLC; Managing Director (since 1997), formerly Vice 333 W. Wacker Drive President (since 1996) of Nuveen Advisory Corp. and Chicago, IL 60606 Nuveen Institutional Advisory Corp.; Managing Director of Nuveen Asset Management, Inc. (since 1999). Chartered Financial Analyst. ------------------------------------------------------------------------------------------------------------------------------------ Thomas J. O'Shaughnessy Vice President 1999 Vice President (since 2002), formerly, Assistant 127 9/4/60 Vice President (since 1998), of Nuveen Advisory Corp.; 333 W. Wacker Drive prior thereto, portfolio manager. Chicago, IL 60606 ------------------------------------------------------------------------------------------------------------------------------------ Thomas C. Spalding Vice President 1982 Vice President of Nuveen Advisory Corp. and Nuveen 127 7/31/51 Institutional Advisory Corp.; Chartered Financial 333 W. Wacker Drive Analyst. Chicago, IL 60606 (1) Mr. Schwertfeger is an "interested person" of the Funds, as defined in the Investment Company Act of 1940, because he is an officer and trustee of the Adviser. (2) Directors serve a one-year term until his/her successor is elected. The year first elected or appointed represents the year in which the Directors was first elected or appointed to any fund in the Nuveen Complex. (3) Officers serve a one-year term 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. 56 Build Your Wealth AUTOMATICALLY Sidebar text: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET UP YOUR REINVESTMENT ACCOUNT. NUVEEN CLOSED-END EXCHANGE-TRADED FUNDS DIVIDEND REINVESTMENT PLAN Your Nuveen Closed-End Exchange-Traded Fund allows you to conveniently reinvest dividends and/or capital gains distributions in additional fund shares. By choosing to reinvest, you'll be able to invest money regularly and automatically, and watch your investment grow through the power of tax-free compounding. Just like dividends or distributions in cash, there may be times when income or capital gains taxes may be payable on dividends or distributions that are reinvested. It is important to note that an automatic reinvestment plan does not ensure a profit, nor does it protect you against loss in a declining market. EASY AND CONVENIENT To make recordkeeping easy and convenient, each month you'll receive a statement showing your total dividends and distributions, the date of investment, the shares acquired and the price per share, and the total number of shares you own. HOW SHARES ARE PURCHASED The shares you acquire by reinvesting will either be purchased on the open market or newly issued by the Fund. If the shares are trading at or above net asset value at the time of valuation, the Fund will issue new shares at the then-current market price. If the shares are trading at less than net asset value, shares for your account will be purchased on the open market. Dividends and distributions received to purchase shares in the open market will normally be invested shortly after the dividend payment date. No interest will be paid on dividends and distributions awaiting reinvestment. Because the market price of shares may increase before purchases are completed, the average purchase price per share may exceed the market price at the time of valuation, resulting in the acquisition of fewer shares than if the dividend or distribution had been paid in shares issued by the Fund. A pro rata portion of any applicable brokerage commissions on open market purchases will be paid by Plan participants. These commissions usually will be lower than those charged on individual transactions. FLEXIBILITY You may change your distribution option or withdraw from the Plan at any time, should your needs or situation change. Should you withdraw, you can receive a certificate for all whole shares credited to your reinvestment account and cash payment for fractional shares, or cash payment for all reinvestment account shares, less brokerage commissions and a $2.50 service fee. You can reinvest whether your shares are registered in your name, or in the name of a brokerage firm, bank, or other nominee. Ask your investment advisor if his or her firm will participate on your behalf. Participants whose shares are registered in the name of one firm may not be able to transfer the shares to another firm and continue to participate in the Plan. The Fund reserves the right to amend or terminate the Plan at any time. Although the Fund reserves the right to amend the Plan to include a service charge payable by the participants, there is no direct service charge to participants in the Plan at this time. For more information on the Nuveen Automatic Reinvestment Plan or to enroll in or withdraw from the Plan, speak with your financial advisor or call us at (800) 257-8787. 57 Fund INFORMATION BOARD OF DIRECTORS William E. Bennett Robert P. Bremner Lawrence H. Brown Anne E. Impellizzeri Peter R. Sawers William J. Schneider Timothy R. Schwertfeger Judith M. Stockdale FUND MANAGER Nuveen Advisory Corp. 333 West Wacker Drive Chicago, IL 60606 CUSTODIAN State Street Bank & Trust Boston, MA TRANSFER AGENT AND SHAREHOLDER SERVICES State Street Bank & Trust Nuveen Funds P.O. Box 43071 Providence, RI 02940-3071 (800) 257-8787 LEGAL COUNSEL Chapman and Cutler LLP Chicago, IL INDEPENDENT AUDITORS Ernst & Young LLP Chicago, IL POLICY CHANGE On November 14, 2002, the Board adopted a policy that allows each Fund, in addition to investments in municipal bonds, to invest up to 5% of its net assets (including assets attributable to preferred shares, if any) in tax-exempt or taxable fixed-income securities or equity securities for the purpose of acquiring control of an issuer whose municipal bonds (a) the Fund already owns and (b) have deteriorated or are expected shortly to deteriorate significantly in credit quality, provided Nuveen Advisory determines that such investment should enable the Fund to better maximize the value of its existing investment in such issuer. This policy is a non-fundamental policy of each Fund which means that it can be changed at any time by the Board of Directors without vote of the shareholders. GLOSSARY OF TERMS USED IN THIS REPORT Average Annual Total Return: This is a commonly used method to express an investment's performance over a particular, usually multi-year time period. It expresses the return (including change in NAV and reinvested dividends) that would have been necessary on an annual basis to equal the investment's actual performance over the time period being considered. Average Duration: Duration is a measure of a bond or bond fund's sensitivity to changes in interest rates. Generally, the longer a bond or fund's duration, the more the price of the bond or fund will change as interest rates change. Average Effective Maturity: The average of all the maturities of the bonds in a fund's portfolio, computed by weighting each maturity date (the date the security comes due) by the market value of the security. This figure does not account for the likelihood of prepayments or the exercise of call provisions. Leverage-Adjusted Duration: Duration is a measure of a bond or bond fund's sensitivity to changes in interest rates. Generally, the longer a bond or fund's duration, the more the price of the bond or fund will change as interest rates change. Leverage-adjusted duration takes into account the leveraging process for a Fund and therefore is generally longer than the duration of the actual portfolio of individual bonds that make up the Fund. Market Yield (also known as Dividend Yield or Current Yield): An investment's current annualized dividend divided by its current market price. Net Asset Value (NAV): A fund's NAV is calculated by subtracting the liabilities of the fund from its total assets and then dividing the remainder by the number of shares outstanding. Fund NAVs are calculated at the end of each business day. Taxable-Equivalent Yield: The yield necessary from a fully taxable investment to equal, on an after-tax basis, the yield of a municipal bond investment. --------- Each Fund intends to repurchase shares of its own common or preferred stock in the future at such times and in such amounts as is deemed advisable. No shares were repurchased during the fiscal year ended August 31, 2003. Any future repurchases will be reported to shareholders in the next annual or semiannual report. 57 Serving Investors FOR GENERATIONS Since 1898, financial advisors and their clients have relied on Nuveen Investments to provide dependable investment solutions. For the past century, Nuveen Investments has adhered to the belief that the best approach to investing is to apply conservative risk-management principles to help minimize volatility. Building on this tradition, we today offer a range of high quality equity and fixed-income solutions that are integral to a well-diversified core portfolio. Our clients have come to appreciate this diversity, as well as our continued adherence to proven, long-term investing principles. Managing $90 billion in assets, Nuveen Investments offers access to a number of different asset classes and investing solutions through a variety of products. Nuveen Investments markets its capabilities under four distinct brands: Nuveen, a leader in tax-free investments; NWQ, a leader in value-style equities; Rittenhouse, a leader in growth-style equities; and Symphony, a leading institutional manager of market-neutral alternative investment portfolios. To learn more about the products and services Nuveen Investments offers and for a prospectus, where applicable, talk to your financial advisor, or call us at (800) 257-8787. Please read the information carefully before you invest. Distributed by NUVEEN INVESTMENTS, LLC | 333 West Wacker Drive | Chicago, Illinois 60606 | www.nuveen.com EAN-A-0803D 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. The registrant has posted such code of ethics on its website at www.nuveen.com/etf. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. The registrant's board of directors has 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 William E. Bennett, who is "independent" for purposes of Item 3 of Form N-CSR. Mr. Bennett was formerly Executive Vice President and Chief Credit Officer for First Chicago Corp./First National Bank. As part of his role as Chief Credit Officer, Mr. Bennett set policy as to accrual of assets/loans; designated performing/non-performing assets; set the level of reserves against the credit portfolio and determined the carrying value of credit related assets and exposure. Among other things, Mr. Bennett was also responsible for the oversight of the internal analysis function including setting ground rules for the review and preparation of financial analysis and financial statements for use in making credit and risk decisions for clients. Mr. Bennett has significant experience reviewing, analyzing and evaluating financial statements of domestic and international companies in a variety of industries with complex accounting issues. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable at this time. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable at this time. ITEM 6. [RESERVED] ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES In the rare event that a municipal issuer held by the Fund were to issue a proxy or that the Fund were to receive a proxy issued by a cash management security, Nuveen Advisory Corp. (the "Adviser") would either engage an independent third party to determine how the proxy should be voted or vote the proxy with the consent, or based on the instructions, of the Fund's Board of Directors or Trustees or its representative. In the case of a conflict of interest, the proxy would be submitted to the applicable fund's Board to determine how the proxy should be voted. A member of the Adviser's legal department would oversee the administration of the voting, and ensure that records were maintained in accordance with Rule 206(4)-6, reports were filed with the SEC on Form N-PX, and the results were provided to the Board of Directors or Trustees and made available to shareholders as required by applicable rules. ITEM 8. [RESERVED] ITEM 9. 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 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 registrant's last fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 10. 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 posted on registrant's website at www.nuveen.com/etf (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 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT Attached hereto. (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 Act (17 CFR 270.30a-2(b), Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR 240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished pursuant to this paragraph will not be deemed "filed" for purposes of Section 18 of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference. Ex-99.906 CERT attached hereto. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) Nuveen California Municipal Value Fund, Inc. ----------------------------------------------------------- By (Signature and Title)* /s/ Jessica R. Droeger ---------------------------------------------- Jessica R. Droeger Vice President and Secretary Date: November 7, 2003 ------------------------------------------------------------------- Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By (Signature and Title)* /s/ Gifford R. Zimmerman ---------------------------------------------- Gifford R. Zimmerman Chief Administrative Officer (Principal Executive Officer) Date: November 7, 2003 ------------------------------------------------------------------- By (Signature and Title)* /s/ Stephen D. Foy ---------------------------------------------- Stephen D. Foy Vice President and Controller (Principal Financial Officer) Date: November 7, 2003 ------------------------------------------------------------------- * Print the name and title of each signing officer under his or her signature.