UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-5235
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Nuveen California Municipal Value Fund, Inc.
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(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Address of principal executive offices) (Zip code)
Kevin J. McCarthy
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
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Date of fiscal year end: February 28
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Date of reporting period: February 28, 2009
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
ANNUAL REPORT | Nuveen Investments
February 28, 2009 | MUNICIPAL CLOSED-END FUNDS
[PHOTO OF: SMALL CHILD]
NUVEEN CALIFORNIA
MUNICIPAL VALUE FUND, INC.
NCA
NUVEEN CALIFORNIA
PERFORMANCE PLUS
MUNICIPAL FUND, INC.
NCP
NUVEEN CALIFORNIA
MUNICIPAL MARKET
OPPORTUNITY FUND, INC.
NCO
NUVEEN CALIFORNIA
INVESTMENT QUALITY
MUNICIPAL FUND, INC.
NQC
NUVEEN CALIFORNIA
SELECT QUALITY
MUNICIPAL FUND, INC.
NVC
NUVEEN CALIFORNIA
QUALITY INCOME
MUNICIPAL FUND, INC.
NUC
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Chairman's
LETTER TO SHAREHOLDERS
[PHOTO OF ROBERT P. BREMNER] | Robert P. Bremner | Chairman of the Board
Dear Shareholders,
I write this letter in a time of continued uncertainty about the current state
of the U.S. financial system and pessimism about the future of the global
economy. Many have observed that the conditions that led to the crisis have
built up over time and will complicate and extend the course of recovery. At the
same time, government officials in the U.S. and abroad have implemented a wide
range of programs to restore stability to the financial system and encourage
economic recovery. It is believed that these efforts will moderate the extent of
the downturn and hasten the inevitable recovery, even though it is hard to
envision that outcome in the current environment.
As you will read in this report, the continuing financial and economic problems
are weighing heavily on the values of equities and fixed-income assets and
unfortunately the performance of your Nuveen Fund has been similarly affected.
In addition to the financial statements, I hope that you will carefully review
the Portfolio Manager's Comments, the Common Share Dividend and Share Price
Information and the Performance Overview sections of this report and please note
this is a six month annual report. During the current fiscal period, the Board
of Directors approved a change in the Funds' fiscal and tax year end from August
31 to February 28/29. These comments highlight the manager's pursuit of
investment strategies that depend on thoroughly researched securities,
diversified portfolio holdings and well established investment disciplines to
achieve your Fund's investment goals. The Fund Board believes that a consistent
focus on long-term investment goals provides the basis for successful investment
over time and we monitor your Fund with that objective in mind.
Nuveen continues to work on resolving the issues related to the auction rate
preferred shares situation, but the unsettled conditions in the credit markets
have slowed progress. Nuveen is actively pursuing a number of solutions, all
with the goal of providing liquidity for preferred shareholders while preserving
the potential benefits of leverage for common shareholders. We appreciate the
patience you have shown as we work through the many issues involved. Please
consult the Nuveen website: www.nuveen.com, for the most recent information.
On behalf of myself and the other members of your Fund's Board, we look forward
to continuing to earn your trust in the months and years ahead.
Sincerely,
/s/ Robert P. Bremner
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Robert P. Bremner
Chairman of the Nuveen Fund Board
April 20, 2009
Portfolio Manager's COMMENTS
Nuveen Investments Municipal Closed-End Funds | NCA, NCP, NCO, NQC, NVC, NUC
During the current fiscal period, the Board of Directors approved a change in
the Funds' fiscal and tax year end from August 31 to February 28/29.
Portfolio manager Scott Romans reviews economic and municipal market conditions
at both the national and state levels, key investment strategies, and the
six-month performance of the Nuveen California Municipal Funds. Scott, who
joined Nuveen in 2000, has managed these six Funds since 2003.
WHAT FACTORS AFFECTED THE U.S. ECONOMIC AND MUNICIPAL MARKET ENVIRONMENTS DURING
THE SIX-MONTH PERIOD ENDED FEBRUARY 28, 2009?
During this period, downward pressure on the economy continued and stress in the
financial and credit markets led to increased price volatility for most
securities, reduced liquidity and a general flight to quality. In an effort to
improve overall economic conditions, the Federal Reserve (Fed) cut the fed funds
target interest rate in December 2008 to between zero and 0.25%, its lowest
level on record. (On March 18, 2009, following the end of this reporting period,
the Fed announced that, in addition to maintaining the fed funds rate at its
0-0.25% level, it would buy $300 billion in Treasury securities over the next
six months in an effort to improve conditions in private credit markets and up
to an additional $750 billion of agency mortgage-backed securities to bolster
the housing market.)
After declining at an annual rate of 0.5% in the third quarter of 2008, Gross
domestic product (GDP) -- a measure of national economic output -- contracted at
an annual rate of 6.2% in the fourth quarter of 2008, the weakest performance
since 1982. Signs of a deepening housing recession continued to trouble the
economy, with the price of a single-family home falling a record 18.2% in 2008.
In the labor markets, February 2009 marked the fourteenth consecutive month of
job losses and the third straight month employment losses topped 600,000, the
first such occurrence since records began in 1939. The national unemployment
rate for February 2009 was 8.1%, its highest point in more than 25 years. At the
same time, inflation remained subdued. The Consumer Price Index (CPI),
reflecting large drops in energy and transportation prices, registered a 0.2%
year-over-year gain in February 2009, while the core CPI (which excludes food
and energy) rose 1.8%. Both numbers were within the Fed's unofficial objective
of 2.0% or lower.
Certain statements in this report are forward-looking statements. Discussions of
specific investments are for illustration only and are not intended as
recommendations of individual investments. The forward-looking statements and
other views expressed herein are those of the portfolio manager as of the date
of this report. Actual future results or occurrences may differ significantly
from those anticipated in any forward-looking statements and the views expressed
herein are subject to change at any time, due to numerous market and other
factors. The Funds disclaim any obligation to update publicly or revise any
forward-looking statements or views expressed herein.
4
Beginning in October, the nation's financial institutions and financial markets
-- including the municipal bond market--experienced significant turmoil.
Reductions in demand decreased valuations of municipal bonds across all credit
ratings. The municipal market is one in which dealer firms make markets in bonds
on a principal basis using their proprietary capital, and during the recent
market turmoil these firms' capital was severely constrained. As a result, some
firms were unwilling to commit their capital to purchase and to serve as a
dealer for municipal bonds. This reduction in dealer involvement in the market
was accompanied by significant net selling pressure by investors, particularly
with respect to lower-rated municipal bonds, as institutional investors
generally removed money from the municipal bond market, at least in part because
of their need to reduce the leveraging of their municipal investments. This
deleveraging was in part driven by the overall reduction in the amount of
financing available for such leverage, the increased costs of such leverage
financing, and the need to reduce leverage levels that had recently increased
due to the decline in municipal bond prices.
Municipal bond prices were further negatively impacted by concerns that the need
for further deleveraging and a supply overhang (a large amount of new issues
that were postponed) would cause selling pressure to persist for a period of
time. In addition to falling prices, the following market conditions resulted in
greater price volatility of municipal bonds - wider credit spreads (i.e., lower
quality bonds fell in price more than higher quality bonds); significantly
reduced liquidity (i.e., the ability to sell bonds at a price close to their
carrying value), particularly for lower quality bonds; and a lack of price
transparency (i.e., the ability to accurately determine the price at which a
bond would likely trade). Reduced liquidity was most pronounced in mid-October,
although it improved considerably after that period.
Municipal bond market performance over this period also was significantly
impacted by concerns about the credit markets, downgrades of municipal bond
insurers, and institutional investors' need to unwind various leveraging
strategies. These events created surges of selling pressure, as many municipal
bond owners tried to sell holdings of longer-maturity bonds into a market
already experiencing a lack of liquidity. Combined with the Fed rate cuts, this
produced a steepening of the municipal yield curve. In this environment, bonds
with shorter maturities generally outperformed longer maturity bonds, and higher
quality bonds tended to outperform lower quality credits.
Over the six months ended February 28, 2009, municipal bond issuance nationwide
totaled $139.5 billion, a drop of 22% compared with the twelve-month period
ended February 29, 2008. While market conditions during this period impacted the
demand for municipal bonds, we continued to see demand from investors attracted
by higher interest rates and yields relative to taxable bonds.
5
HOW WERE THE ECONOMIC AND MARKET ENVIRONMENTS IN CALIFORNIA DURING THIS PERIOD?
Employment declines, especially in the construction, finance and manufacturing
sectors, far outpaced the modest gains reported in education/health services,
government, and leisure and hospitality, the only sectors to report positive
growth. As of February 2009, California's unemployment rate had risen to 10.5%,
its highest level since April 1983, up from 6.2% in February 2008. On the
positive side, the state's economy remained relatively diverse, with technology
providing some recent economic support, especially in the areas of renewable
energy and medical equipment. Because of its exposure to riskier,
non-traditional mortgage products, the state's housing market was hit hard by
the sub-prime mortgage crisis as well as the downturn in the housing sector.
Foreclosures in California, which reached a rate twice the U.S. average, have
driven reductions in home prices throughout the state. According to the Standard
& Poor's (S&P)/Case-Shiller home price index of 20 major metropolitan areas,
housing prices in San Francisco, Los Angeles and San Diego fell 32.4%, 25.8% and
24.9%, respectively, between January 2008 and January 2009, compared with an
average decrease of 19.0% nationwide. The severe decline in California's housing
industry had ramifications far beyond the significant job losses in
construction, impacting sellers of building supplies and home furnishings,
mortgage lenders, real estate agents, and finance companies, among others.
Declining home values also contributed to a sharp downturn in both consumer
spending and government tax revenues, with weaker tax collections forcing
downward revisions to revenue estimates from state and local governments.
The California legislature adopted a revised 2009-2010 state budget closing the
gap with $15 billion in spending cuts, $11.4 billion in new borrowing, $12.8
billion in new taxes and $2 billion from federal stimulus funds. The spending
cuts were spread across a number of budget categories, with the brunt being
borne by K-14 education ($8.4 billion), health and human services, and state
payrolls. Tax increases included a one-percent increase in the state sales tax,
increased vehicle license fees, a 0.5% surcharge on personal income taxes, and a
reduction in the dependent tax credit. However, final approval of several
elements of the budget remain subject to voter approval, with a special election
scheduled for May 19, 2009. In addition, the delay in passing the state budget
for fiscal 2009-2010 exacerbated California's ongoing cash-flow problems,
limiting the state's ability to borrow in the short-term markets to smooth out
uneven cashflows and meet priority payments, including debt service on bonds. In
March 2009, following the end of this reporting period, the California
legislative analyst's office announced that a new gap of $8 billion had opened
in the state budget.
As of February 2009, Moody's, S&P and Fitch listed their ratings on California's
general obligation (GOs) bonds at A1, A, and A+, respectively. This reflected
S&P's rating down-
6
grade from A+ on February 3, 2009. (In March 2009, following the end of this
reporting period, Moody's and Fitch also lowered their ratings on California GOs
to A2 and A, respectively.) For the six months ended February 28, 2009,
municipal issuance in California totaled $12.4 billion, a decrease of 46% from
the previous twelve months.
WHAT KEY STRATEGIES WERE USED TO MANAGE THE CALIFORNIA FUNDS DURING THIS
REPORTING PERIOD?
During this period, as the municipal market was pressured by price volatility
and lack of liquidity, we continued to focus on finding bonds that offered
relative value, preserving liquidity and investing for the long term.
Our investment activity during this period was largely driven by opportunities
created by the market turmoil and market conditions resulting from that stress.
This was true in both the new issuance municipal bond market and the secondary
markets. In the new issuance (or primary) market, we were able to purchase bonds
with better structures (e.g., higher coupons, longer call protection) than we
have seen in a long time, as market conditions required issuers to enhance
offerings to make them more attractive to buyers. In the secondary markets, we
found bonds, especially lower-rated bonds, at extremely discounted prices as the
result of selling by some municipal market participants, particularly in
November and December 2008. In both cases, we were focused on using a
fundamental approach to discover undervalued sectors and individual credits with
the potential to perform well over the long term. Many of the opportunities we
found during this period were in health care, a sector we follow closely and
know well. One example of a bond we added to all of these Funds was a BBB rated
credit issued by Loma Linda University Medical Center, which offered a coupon of
8.25% with a maturity date of 2039.
During this period, a number of bond calls provided some of the capital
necessary for purchases. We also monitored the types of credits and bond
structures that were attractive to the retail market and took advantage of
strong bids to sell bonds where we believe we had extracted the performance
potential into relatively consistent retail demand. In addition, we lightened
our positions in California general obligation bonds, due to their exposure to
the state's ongoing economic problems, as well as in a variety of Puerto Rico
issues.
As a key dimension of risk management, a disciplined approach to duration(1)
positioning remained an important component of our management strategies. As
part of this approach, we continued to use inverse floating rate securities(2)
in all six of these Funds. Inverse floaters typically provide the dual benefit
of bringing the Funds' durations closer to our strategic target and enhancing
their income-generation capabilities. As of February 28, 2009, the inverse
floaters remained in place in all of the Funds.
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(1) Duration is a measure of a bond's price sensitivity as interest rates
change, with longer duration bonds displaying more sensitivity to these changes
than bonds with shorter durations.
(2) An inverse floating rate security, also know as inverse floaters, is a
financial instrument designed to pay long-term tax-exempt interest at a rate
that varies inversely with a short-term tax-exempt interest rate index. For the
Nuveen Funds, the index typically used is the Securities Industry and Financial
Markets (SIFM) Municipal Swap Index (previously referred to as the Bond Market
Association Index or BMA). Inverse floaters, including those inverse floating
rate securities in which the Funds invested during the reporting period, are
further defined within the Notes to Financial Statements and Glossary of Terms
Used in this Report sections of this shareholder report.
7
HOW DID THE FUNDS PERFORM?
Individual results for these Nuveen California Funds, as well as relevant index
and peer group information, are presented in the accompanying table.
Average Annual Total Returns on Common Share Net Asset Value*
For periods ended 2/28/09
Six-month 1-Year 5-Year 10-Year
NCA(3) -4.73% -0.30% 2.16% 3.81%
NCP -7.75% -1.94% 1.15% 3.88%
NCO -6.85% -0.27% 1.32% 3.83%
NQC -7.70% -2.02% 1.24% 3.88%
NVC -7.09% -0.87% 1.60% 4.20%
NUC -5.94% 0.60% 2.32% 4.31%
Lipper CA
Municipal Debt
Funds Average(4) -11.72% -5.61% 0.54% 3.57%
Barclays Capital
CA Municipal
Bond Index(5) -1.36% 3.93% 3.02% 4.42%
S&P CA Municipal
Bond Index(6) -3.34% 3.07% 2.85% 4.34%
For the six months ended February 28, 2009, the total returns on common share
net asset value (NAV) for NCA, NCP, NCO, NQC, NVC and NUC exceeded the average
return for the Lipper California Municipal Debt Funds Average. All of the Funds
under-performed the unleveraged Barclays Capital California Municipal Bond Index
and the S&P California Municipal Bond Index.
Key management factors that influenced the Funds' returns during this period
included duration and yield curve positioning, the use of derivatives,(7) credit
exposure, and sector allocations. In addition, the use of leverage had a
generally detrimental effect on the Funds' performances (with the exception of
NCA, which is unleveraged) over this period. The impact of leverage is discussed
in more detail on page 9.
Over the course of this reporting period, the yield curve remained steep, as
interest rates at the short end of the curve declined and longer rates rose.
Given this interest rate environment, bonds in the Barclays Capital California
Municipal Bond Index with maturities between two and eight years benefited the
most, with bonds maturing in approximately five years performing the best.
Because they were less price sensitive to interest rate changes, these bonds
generally outperformed credits with longer maturities, as bonds with the longest
maturities (20 years and longer) posted a loss for the period. In general, these
six Funds tended to have relatively less exposure to the outperforming shorter
end of the yield curve and comparatively heavier exposure to the underperforming
longest part of the curve. Overall, NUC had the most advantageous
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Six-month returns are cumulative. One-, five- and ten year returns are
annualized.
Past performance is not predictive of future results. Current performance may
be higher or lower than the data shown. Returns do not reflect the deduction of
taxes that shareholders may have to pay on Fund distributions or upon the sale
of Fund shares.
For additional information, see the individual Performance Overview for your
Fund in this report.
(3) NCA is an unleveraged Fund; the remaining five Funds in this report are
leveraged.
(4) The Lipper California Municipal Debt Funds Average is calculated using the
returns of all closed-end funds in this category for each period as follows: 1
year, 24 funds; 5 years, 24 funds; and 10 years, 12 funds. Fund and Lipper
returns assume reinvestment of dividends.
(5) The Barclays Capital (formerly Lehman Brothers) California Municipal Bond
Index is an unleveraged, unmanaged index comprising a broad range of
investment-grade California municipal bonds. Results for the Barclays Capital
index do not reflect any expenses.
(6) The Standard & Poor's (S&P) California Municipal Bond Index is an
unleveraged, market value-weighted index designed to measure the performance of
the investment-grade California municipal bond market.
(7) Each Fund may invest in derivatives instruments such as forwards, futures,
option and swap transactions. For additional information on derivative
instruments in which each Fund was invested during and at the end of the
reporting period, see the Portfolio of Investments, Financial Statements and
Notes to Financial Statements sections of this shareholder report
8
duration positioning for the municipal market environment of this six-month
period, that is, it was more heavily weighted in the areas of the yield curve
that performed well.
As mentioned earlier, all of these Funds used inverse floaters. During this
period, these inverse floaters generally had a negative impact on performance.
This resulted from the fact that the inverse floaters effectively increased the
Funds' exposures to longer maturity bonds at a time when shorter maturities were
in favor in the market.
Credit exposure was also an important factor in performance during these six
months. Because risk-averse investors generally sought higher quality
investments as disruptions in the financial markets deepened, bonds with higher
credit quality typically performed very well. At the same time, securities rated
BBB or below and non-rated bonds generally posted poor returns. Overall, NCA,
NCP and NQC were the most negatively impacted by their exposure to bonds rated
BBB and non-rated bonds.
During this period, pre-refunded(8) bonds, which are backed by U.S. Treasury
securities, were one of the top performing segments of the market, due primarily
to their shorter effective maturities, higher credit quality, and perceived
safety. NUC, NCA and NVC had heavier weightings of pre-refunded bonds than the
other three Funds in this report, while NCP was severely underweighted in this
category. Additional sectors of the market that generally contributed to the
Funds' returns included general obligation and other tax-backed bonds, water and
sewer and education credits.
Holdings that generally detracted from the Funds' performances included
transportation and industrial development revenue (IDR) bonds, which performed
very poorly during this period. The health care revenue sector also
underperformed the overall municipal market. Alongside current coupon bonds in
these sectors, zero coupon bonds were among the worst performing categories in
the municipal market, as were lower-rated bonds backed by the 1998 master
tobacco settlement agreement, which comprised approximately 2.5% to 3.6% of
these Funds' portfolios as of February 28, 2009.
IMPACT OF THE FUNDS' CAPITAL STRUCTURES AND LEVERAGE STRATEGIES ON PERFORMANCE
In addition to the factors previously discussed, another factor impacting the
six-month returns of NCP, NCO, NQC, NVC and NUC relative to those of the
unleveraged Barclays Capital California Municipal Bond Index and S&P California
Municipal Bond Index was these Funds' use of financial leverage. (NCA is
unleveraged.) While leverage offers opportunities to generate additional income
and total returns for common shareholders, the benefits provided by leveraging
are influenced by the price movements of the bonds in each Fund's portfolio.
During this period, declining valuations had a negative effect on performance
that was magnified by the use of leverage.
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(8) Pre-refundings, also known as advance refundings or refinancings, occur
when an issuer sells new bonds and uses the proceeds to fund principal and
interest payments of older existing bonds. This process often results in lower
borrowing costs for bond issuers.
9
RECENT DEVELOPMENTS REGARDING BOND INSURANCE COMPANIES
Another factor that had an impact on the performance of these Funds was their
position in bonds backed by municipal bond insurers that experienced downgrades
in their credit ratings. During the period covered by this report, ACA, AGC,
AMBAC, FGIC, FSA, MBIA, RAAI and SYNCORA (formerly XLCA) experienced one or more
rating reductions by at least one or more rating agencies. At the time this
report was prepared, at least one rating agency has placed each of these
insurers except AGC on "negative credit watch," "credit outlook developing" or
"rating withdrawn," which may presage one or more rating reductions for such
insurer or insurers in the future. As concern increased about the balance sheets
of these insurers, prices on bonds insured by these companies - especially those
bonds with weaker underlying credits -declined, detracting from the Funds'
performance. By the end of this period, most insured bonds were being valued
according to their fundamentals as if they were uninsured. On the whole, the
holdings of all of our Funds continued to be well diversified not only between
insured and uninsured bonds, but also within the insured bond category. It is
important to note that municipal bonds historically have had a very low rate of
default.
RECENT DEVELOPMENTS IN THE AUCTION RATE PREFERRED SECURITIES MARKETS
As noted in the last shareholder report, beginning in February 2008, more shares
were submitted for sale in the regularly scheduled auctions for the auction rate
preferred shares issued by these Funds than there were offers to buy. This meant
that these auctions "failed to clear," and that many or all of the Funds'
auction rate preferred shareholders who wanted to sell their shares in these
auctions were unable to do so. This decline in liquidity in auction rate
preferred shares did not lower the credit quality of these shares, and auction
rate preferred shareholders unable to sell their shares received distributions
at the "maximum rate" applicable to failed auctions, as calculated in accordance
with the pre-established terms of the auction rate preferred shares.
These developments generally have not affected the portfolio management or
investment policies of these Funds. However, one continuing implication for
common shareholders of these auction failures is that the Funds' cost of
leverage will likely be higher, at least temporarily, than it otherwise would
have been had the auctions continued to be successful. As a result, the Funds'
future common share earnings may be lower than they otherwise might have been.
As noted in the last shareholder report, the Funds' Board of Directors
authorized a plan to use tender option bonds (TOBs), also known as floating rate
securities, to refinance a portion of the Funds' outstanding auction rate
preferred shares.
On January 8, 2009, thirty-five Nuveen closed-end municipal funds called for
redemption at par a portion of their outstanding auction rate preferred
securities. This series of redemptions collectively totaled $250.1 million. This
new series of redemptions
10
brings the total amount of Nuveen's municipal closed-end funds' auction rate
preferred share redemptions to nearly $2 billion of the original $11 billion
outstanding.
As of February 28, 2009, the cumulative amount of auction rate preferred
securities redeemed by the Funds are as shown in the accompanying table:
Auction Rate % of Original
Preferred Shares Auction Rate
Fund Redeemed Preferred Shares
NCP $14,825,000 14.0%
NCO $ 9,100,000 13.4%
NQC $17,075,000 15.2%
NVC $27,850,000 14.5%
NUC $19,975,000 10.8%
While the Funds' Board of Directors and management continue to work to resolve
this situation, the Funds cannot provide any assurance on when the remaining
outstanding auction rate preferred shares might be redeemed.
On March 30, 2009, subsequent to the reporting period, thirty-four Nuveen
closed-end municipal funds (none of which are included in this shareholder
report) called for redemption at par a portion of their outstanding auction-rate
preferred shares. This series of redemptions will collectively total more than
$287 million. Each of the funds will be using TOBs to finance the partial
redemption of its auction rate preferred shares.
For up-to-date information, please visit the Nuveen CEF Auction Rate Preferred
Resource Center at:
http://www.nuveen.com/ResourceCenter/AuctionRatePreferred.aspx.
11
Common Share
Dividend and Share Price INFORMATION
During the six-month reporting period ended February 28, 2009, all six of the
California Funds dividends remained stable throughout the reporting period.
Due to capital gains generated by normal portfolio activity, common shareholders
of these Funds received capital gains and net ordinary income distributions at
the end of December 2008 as follows:
Short-Term Capital Gains
Long-Term Capital Gains and/or Ordinary Income
(per share) (per share)
NCA $0.0709 $0.0581
NCP $0.0870 --
NCO $0.0342 $0.0122
NQC $0.1602 $0.0257
NVC $0.0750 $0.1015
NUC $0.0986 $0.0660
All of the Funds in this report seek to pay stable dividends at rates that
reflect each Fund's past results and projected future performance. During
certain periods, each Fund may pay dividends at a rate that may be more or less
than the amount of net investment income actually earned by the Fund during the
period. If a Fund has cumulatively earned more than it has paid in dividends, it
holds the excess in reserve as undistributed net investment income (UNII) as
part of the Fund's NAV. Conversely, if a Fund has cumulatively paid dividends in
excess of its earnings, the excess constitutes negative UNII that is likewise
reflected in the Fund's NAV. Each Fund will, over time, pay all of its net
investment income as dividends to shareholders. As of February 28, 2009, all of
the California Funds in this shareholder report had positive UNII balances for
both tax purposes and financial statement purposes.
12
COMMON SHARE REPURCHASES AND SHARE PRICE INFORMATION
On July 30, 2008, the Funds' Board of Directors approved an open-market share
repurchase program under which each Fund may repurchase up to 10% of its
outstanding common shares. As of February 28, 2009, the Funds repurchased common
shares as shown in the accompanying table:
Common Shares % of Outstanding
Fund Repurchased Common Shares
NCP 14,500 0.1%
NCO 6,600 0.1%
NVC 20,200 0.1%
NUC 17,900 0.1%
Since the inception of this program, common shares were repurchased at a
weighted average price and a weighted average discount per common share as shown
in the accompanying table:
Weighted Average Weighted Average
Price Per Share Discount Per Share
Fund Repurchased Repurchased
NCP $10.06 20.96%
NCO $10.11 22.69%
NVC $ 9.89 22.81%
NUC $10.40 22.38%
As of February 28, 2009, the Funds' common share prices were trading at
discounts to their common share NAVs as shown in the accompanying table:
2/28/09 Six-Month
Discount Average Discount
NCA -5.41% - 3.25%
NCP -13.94% - 18.21%
NCO -16.64% - 18.29%
NQC -12.33% - 16.23%
NVC -15.25% - 17.51%
NUC -15.65% - 17.21%
13
NCA Performance OVERVIEW | Nuveen California Municipal Value Fund, Inc.
as of February 28, 2009
FUND SNAPSHOT
-------------------------------------------------------------------------------
Common Share Price $ 8.39
-------------------------------------------------------------------------------
Common Share Net Asset Value $ 8.87
-------------------------------------------------------------------------------
Premium/(Discount) to NAV -5.41%
-------------------------------------------------------------------------------
Market Yield 5.44%
-------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 8.36%
-------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 223,949
-------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 17.74
-------------------------------------------------------------------------------
Modified Duration 8.95
-------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 10/07/87)
-------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
-------------------------------------------------------------------------------
6-Month (Cumulative) -9.08% -4.73%
-------------------------------------------------------------------------------
1-Year -3.39% -0.30%
-------------------------------------------------------------------------------
5-Year 2.12% 2.16%
-------------------------------------------------------------------------------
10-Year 3.84% 3.81%
-------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
-------------------------------------------------------------------------------
Tax Obligation/Limited 30.8%
-------------------------------------------------------------------------------
U.S. Guaranteed 27.5%
-------------------------------------------------------------------------------
Water and Sewer 8.0%
-------------------------------------------------------------------------------
Health Care 7.6%
-------------------------------------------------------------------------------
Utilities 6.6%
-------------------------------------------------------------------------------
Long-Term Care 5.8%
-------------------------------------------------------------------------------
Other 13.7%
-------------------------------------------------------------------------------
Credit Quality (as a % of total investments)(1)
[PIE CHART]
AAA/U.S. Guaranteed 36%
AA 16%
A 29%
BBB 13%
N/R 6%
2008-2009 Monthly Tax-Free Dividends Per Common Share(3)
[BAR CHART]
MAR $ 0.0365
APR 0.0365
MAY 0.0365
JUN 0.0365
JUL 0.0365
AUG 0.0365
SEP 0.038
OCT 0.038
NOV 0.038
DEC 0.038
JAN 0.038
FEB 0.038
Common Share Price Performance -- Weekly Closing Price
[LINE CHART]
3/01/08 $ 9.42
9.7
9.82
9.84
9.7
9.82
9.84
9.7
9.7
9.62
9.65
9.78
9.79
9.77
9.7
9.56
9.51
9.4899
9.56
9.63
9.38
9.55
9.67
9.48
9.51
9.51
9.6299
9.69
9.62
9.54
9.163
9.31
7.4
8.21
8.61
8.48
8.65
8.4099
7.9399
8.05
7.9
7.67
8.255
8
8.68
8.81
8.8
8.65
8.5
8.73
8.6
8.4
2/28/09 8.3899
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by ACA, AGC, AMBAC, FGIC, FSA, MBIA, RAAI and
SYNCORA as of February 28, 2009. Please see the Portfolio Manager's
Commentary for an expanded discussion of the affect on the Fund of changes
to the ratings of certain bonds in the portfolio resulting from changes to
the ratings of the underlying insurers both during the period and after
period end.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34.9%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(3) The Fund paid shareholders capital gains and net ordinary income
distributions in December 2008 of $0.1290 per share.
14
NCP Performance OVERVIEW | Nuveen California Performance Plus Municipal Fund,
Inc.
as of February 28, 2009
Credit Quality (as a % of total investments)(1)
[PIE CHART]
AAA/U.S. Guaranteed 25%
AA 40%
A 21%
BBB 12%
N/R 2%
2008-2009 Monthly Tax-Free Dividends Per Common Share(3)
[BAR CHART]
MAR $ 0.0565
APR 0.0565
MAY 0.0565
JUN 0.0565
JUL 0.0565
AUG 0.0565
SEP 0.058
OCT 0.058
NOV 0.058
DEC 0.058
JAN 0.058
FEB 0.058
Common Share Price Performance -- Weekly Closing Price
[LINE CHART]
3/01/08 $ 13.09
13
12.68
12.77
12.97
13.19
13.3
13.28
13.12
13.17
13.19
13.2399
13.4
13.33
13.23
12.85
12.67
12.67
12.75
12.66
12.48
12.45
12.49
12.52
12.49
12.556
12.7
12.81
12.56
11.84
11.12
10.63
7.36
9.21
10.45
10.46
10.38
9.69
8.58
9.07
8.71
7.86
8.61
8.87
9.4308
10.944
10.33
10.585
10.56
10.75
11.19
10.24
2/28/09 10.87
FUND SNAPSHOT
-------------------------------------------------------------------------------
Common Share Price $ 10.87
-------------------------------------------------------------------------------
Common Share Net Asset Value $ 12.63
-------------------------------------------------------------------------------
Premium/(Discount) to NAV -13.94%
-------------------------------------------------------------------------------
Market Yield 6.40%
-------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 9.83%
-------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 163,623
-------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 16.28
-------------------------------------------------------------------------------
Leverage-Adjusted Duration 12.85
-------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/15/89)
-------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
-------------------------------------------------------------------------------
6-Month (Cumulative) -10.58% -7.75%
-------------------------------------------------------------------------------
1-Year -9.35% -1.94%
-------------------------------------------------------------------------------
5-Year -0.01% 1.15%
-------------------------------------------------------------------------------
10-Year 1.69% 3.88%
-------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
-------------------------------------------------------------------------------
Tax Obligation/Limited 24.3%
-------------------------------------------------------------------------------
Transportation 18.3%
-------------------------------------------------------------------------------
Tax Obligation/General 12.0%
-------------------------------------------------------------------------------
Water and Sewer 9.6%
-------------------------------------------------------------------------------
U.S. Guaranteed 9.1%
-------------------------------------------------------------------------------
Utilities 7.3%
-------------------------------------------------------------------------------
Education and Civic Organizations 6.8%
-------------------------------------------------------------------------------
Health Care 5.8%
-------------------------------------------------------------------------------
Other 6.8%
-------------------------------------------------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by ACA, AGC, AMBAC, FGIC, FSA, MBIA, RAAI and
SYNCORA as of February 28, 2009. Please see the Portfolio Manager's
Commentary for an expanded discussion of the affect on the Fund of changes
to the ratings of certain bonds in the portfolio resulting from changes to
the ratings of the underlying insurers both during the period and after
period end.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34.9%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(3) The Fund paid shareholders a capital gains distribution in December 2008
of $0.0870 per share.
15
NCO Performance OVERVIEW | Nuveen California Municipal Market Opportunity Fund,
Inc.
as of February 28, 2009
FUND SNAPSHOT
-------------------------------------------------------------------------------
Common Share Price $ 10.77
-------------------------------------------------------------------------------
Common Share Net Asset Value $ 12.92
-------------------------------------------------------------------------------
Premium/(Discount) to NAV -16.64%
-------------------------------------------------------------------------------
Market Yield 6.52%
-------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 10.02%
-------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 105,482
-------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 16.27
-------------------------------------------------------------------------------
Leverage-Adjusted Duration 13.79
-------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 5/17/90)
-------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
-------------------------------------------------------------------------------
6-Month (Cumulative) -12.83% -6.85%
-------------------------------------------------------------------------------
1-Year -10.59% -0.27%
-------------------------------------------------------------------------------
5-Year -0.83% 1.32%
-------------------------------------------------------------------------------
10-Year 1.30% 3.83%
-------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
-------------------------------------------------------------------------------
Tax Obligation/Limited 19.3%
-------------------------------------------------------------------------------
Water and Sewer 16.7%
-------------------------------------------------------------------------------
Transportation 16.7%
-------------------------------------------------------------------------------
U.S. Guaranteed 16.0%
-------------------------------------------------------------------------------
Tax Obligation/General 11.7%
-------------------------------------------------------------------------------
Health Care 9.3%
-------------------------------------------------------------------------------
Other 10.3%
-------------------------------------------------------------------------------
Credit Quality (as a % of total investments)(1)
[PIE CHART]
AAA/U.S. Guaranteed 31%
AA 37%
A 19%
BBB 9%
N/R 4%
2008-2009 Monthly Tax-Free Dividends Per Common Share(3)
[BAR CHART]
MAR $ 0.0575
APR 0.0575
MAY 0.0575
JUN 0.0575
JUL 0.0575
AUG 0.0575
SEP 0.0585
OCT 0.0585
NOV 0.0585
DEC 0.0585
JAN 0.0585
FEB 0.0585
Common Share Price Performance -- Weekly Closing Price
[LINE CHART]
3/01/08 $ 12.91
13.16
13.03
13
13.14
13.44
13.42
13.4552
13.36
13.34
13.4
13.41
13.6
13.59
13.5549
13.17
12.948
12.88
13.04
13.08
12.6999
12.71
12.8
12.84
12.65
12.68
12.85
12.96
12.79
12.01
11.22
11
7.85
9.191
10.75
10.3601
10.84
10.12
9.27
9.65
8.6
7.88
8.86
9.15
9.73
11.1
10.38
10.44
10.6
10.75
11.0901
10.06
2/28/09 10.77
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by ACA, AGC, AMBAC, FGIC, FSA, MBIA, RAAI and
SYNCORA as of February 28, 2009. Please see the Portfolio Manager's
Commentary for an expanded discussion of the affect on the Fund of changes
to the ratings of certain bonds in the portfolio resulting from changes to
the ratings of the underlying insurers both during the period and after
period end.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34.9%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(3) The Fund paid shareholders capital gains and net ordinary income
distributions in December 2008 of $0.0464 per share.
16
NQC Performance OVERVIEW | Nuveen California Investment Quality Municipal Fund,
Inc.
as of February 28, 2009
Credit Quality (as a % of total investments)(1)
[PIE CHART]
AAA/U.S. Guaranteed 24%
AA 43%
A 22%
BBB 10%
N/R 1%
2008-2009 Monthly Tax-Free Dividends Per Common Share(3)
[BAR CHART]
MAR $ 0.0585
APR 0.0585
MAY 0.0585
JUN 0.0585
JUL 0.0585
AUG 0.0585
SEP 0.0605
OCT 0.0605
NOV 0.0605
DEC 0.0605
JAN 0.0605
FEB 0.0605
Common Share Price Performance -- Weekly Closing Price
[LINE CHART]
3/01/08 $ 13.08
13.06
13.01
13
13.28
13.42
13.52
13.64
13.43
13.54
13.575
13.53
13.68
13.63
13.55
13.108
13.06
12.92
12.94
12.91
12.73
12.722
12.89
13.01
12.98
12.85
13.08
13.05
13.07
12.58
12.24
11.15
7.62
9.95
10.83
10.86
10.85
10.35
8.96
9.34
8.75
7.74
8.85
9.42
10.46
11.1
10.58
10.38
10.78
11.04
11.33
10.51
2/28/09 11.09
FUND SNAPSHOT
-------------------------------------------------------------------------------
Common Share Price $ 11.09
-------------------------------------------------------------------------------
Common Share Net Asset Value $ 12.65
-------------------------------------------------------------------------------
Premium/(Discount) to NAV -12.33%
-------------------------------------------------------------------------------
Market Yield 6.55%
-------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 10.06%
-------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 171,836
-------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 16.82
-------------------------------------------------------------------------------
Leverage-Adjusted Duration 14.24
-------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/20/90)
-------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
-------------------------------------------------------------------------------
6-Month (Cumulative) -10.59% -7.70%
-------------------------------------------------------------------------------
1-Year -6.20% -2.02%
-------------------------------------------------------------------------------
5-Year 0.14% 1.24%
-------------------------------------------------------------------------------
10-Year 2.15% 3.88%
-------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
-------------------------------------------------------------------------------
Tax Obligation/Limited 27.9%
-------------------------------------------------------------------------------
Transportation 19.4%
-------------------------------------------------------------------------------
U.S. Guaranteed 15.5%
-------------------------------------------------------------------------------
Education and Civic Organizations 10.1%
-------------------------------------------------------------------------------
Tax Obligation/General 7.3%
-------------------------------------------------------------------------------
Health Care 6.2%
-------------------------------------------------------------------------------
Water and Sewer 5.1%
-------------------------------------------------------------------------------
Other 8.5%
-------------------------------------------------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by ACA, AGC, AMBAC, FGIC, FSA, MBIA, RAAI and
SYNCORA as of February 28, 2009. Please see the Portfolio Manager's
Commentary for an expanded discussion of the affect on the Fund of changes
to the ratings of certain bonds in the portfolio resulting from changes to
the ratings of the underlying insurers both during the period and after
period end.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34.9%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(3) The Fund paid shareholders capital gains and net ordinary income
distributions in December 2008 of $0.1859 per share.
17
NVC Performance OVERVIEW | Nuveen California Select Quality Municipal Fund, Inc.
as of February 28, 2009
FUND SNAPSHOT
-------------------------------------------------------------------------------
Common Share Price $ 10.78
-------------------------------------------------------------------------------
Common Share Net Asset Value $ 12.72
-------------------------------------------------------------------------------
Premium/(Discount) to NAV -15.25%
-------------------------------------------------------------------------------
Market Yield 6.73%
-------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 10.34%
-------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 294,019
-------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 15.28
-------------------------------------------------------------------------------
Leverage-Adjusted Duration 13.71
-------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 5/22/91)
-------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
-------------------------------------------------------------------------------
6-Month (Cumulative) -11.80% -7.09%
-------------------------------------------------------------------------------
1-Year -8.16% -0.87%
-------------------------------------------------------------------------------
5-Year -0.48% 1.60%
-------------------------------------------------------------------------------
10-Year 2.18% 4.20%
-------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
-------------------------------------------------------------------------------
U.S. Guaranteed 24.5%
-------------------------------------------------------------------------------
Tax Obligation/Limited 16.6%
-------------------------------------------------------------------------------
Health Care 11.9%
-------------------------------------------------------------------------------
Transportation 11.8%
-------------------------------------------------------------------------------
Utilities 10.9%
-------------------------------------------------------------------------------
Tax Obligation/General 10.0%
-------------------------------------------------------------------------------
Other 14.3%
-------------------------------------------------------------------------------
Credit Quality (as a % of total investments)(1)
[PIE CHART]
AAA/U.S. Guaranteed 38%
AA 30%
A 20%
BBB 10%
N/R 2%
2008-2009 Monthly Tax-Free Dividends Per Common Share(3)
[BAR CHART]
MAR $ 0.058
APR 0.058
MAY 0.058
JUN 0.058
JUL 0.058
AUG 0.058
SEP 0.0605
OCT 0.0605
NOV 0.0605
DEC 0.0605
JAN 0.0605
FEB 0.0605
Common Share Price Performance -- Weekly Closing Price
[LINE CHART]
3/01/08 $ 12.98
13.12
12.78
12.85
13.11
13.23
13.36
13.3718
13.326
13.3
13.522
13.57
13.46
13.41
13.47
13
12.8501
12.883
12.97
12.87
12.602
12.73
12.7301
12.8
12.6999
12.66
12.88
12.97
12.98
12.64
11
10.75
7.6
9.49
10.5601
10.74
10.91
9.74
8.95
9.76
8.6299
7.77
8.842
9.28
10.2
11.22
10.25
10.38
10.47
10.625
11.06
9.93
2/28/09 10.78
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by ACA, AGC, AMBAC, FGIC, FSA, MBIA, RAAI and
SYNCORA as of February 28, 2009. Please see the Portfolio Manager's
Commentary for an expanded discussion of the affect on the Fund of changes
to the ratings of certain bonds in the portfolio resulting from changes to
the ratings of the underlying insurers both during the period and after
period end.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34.9%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(3) The Fund paid shareholders capital gains and net ordinary income
distributions in December 2008 of $0.1765 per share.
18
NUC Performance OVERVIEW | Nuveen California Quality Income Municipal Fund, Inc.
as of February 28, 2009
Credit Quality (as a % of total investments)(1)
[PIE CHART]
AAA/U.S. Guaranteed 47%
AA 26%
A 15%
BBB 9%
N/R 3%
2008-2009 Monthly Tax-Free Dividends Per Common Share(3)
[BAR CHART]
MAR $ 0.0595
APR 0.0595
MAY 0.0595
JUN 0.0595
JUL 0.0595
AUG 0.0595
SEP 0.0615
OCT 0.0615
NOV 0.0615
DEC 0.0615
JAN 0.0615
FEB 0.0615
Common Share Price Performance -- Weekly Closing Price
[LINE CHART]
3/01/08 $ 13.49
13.69
13.31
13.22
13.61
13.7
13.71
13.8301
13.6799
13.79
13.8466
13.86
13.9
13.98
13.7973
13.49
13.21
13.1099
13.25
13.21
12.92
13.05
13.15
13.01
13.0901
12.93
13.08
13.37
13
12.6
11.69
11.27
7.9
9.79
11.25
10.945
11.47
10.65
9.38
9.76
9.3499
8.45
9.46
9.48
10.41
11.67
11.11
11.11
11.52
11.28
11.72
10.3
2/28/09 11.21
FUND SNAPSHOT
-------------------------------------------------------------------------------
Common Share Price $ 11.21
-------------------------------------------------------------------------------
Common Share Net Asset Value $ 13.29
-------------------------------------------------------------------------------
Premium/(Discount) to NAV -15.65%
-------------------------------------------------------------------------------
Market Yield 6.58%
-------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 10.11%
-------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 292,373
-------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 14.11
-------------------------------------------------------------------------------
Leverage-Adjusted Duration 12.78
-------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/20/91)
-------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
-------------------------------------------------------------------------------
6-Month (Cumulative) -9.94% -5.94%
-------------------------------------------------------------------------------
1-Year -8.71% 0.60%
-------------------------------------------------------------------------------
5-Year -0.51% 2.32%
-------------------------------------------------------------------------------
10-Year 2.07% 4.31%
-------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
-------------------------------------------------------------------------------
U.S. Guaranteed 30.3%
-------------------------------------------------------------------------------
Tax Obligation/Limited 19.8%
-------------------------------------------------------------------------------
Tax Obligation/General 9.9%
-------------------------------------------------------------------------------
Health Care 9.6%
-------------------------------------------------------------------------------
Transportation 9.5%
-------------------------------------------------------------------------------
Utilities 4.9%
-------------------------------------------------------------------------------
Water and Sewer 4.9%
-------------------------------------------------------------------------------
Other 11.1%
-------------------------------------------------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by ACA, AGC, AMBAC, FGIC, FSA, MBIA, RAAI and
SYNCORA as of February 28, 2009. Please see the Portfolio Manager's
Commentary for an expanded discussion of the affect on the Fund of changes
to the ratings of certain bonds in the portfolio resulting from changes to
the ratings of the underlying insurers both during the period and after
period end.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34.9%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(3) The Fund paid shareholders capital gains and net ordinary income
distributions in December 2008 of $0.1646 per share.
19
NCA NCP NCO | Shareholder MEETING REPORT
The annual meeting of shareholders was held in the offices of Nuveen Investments
on November 18, 2008; at this NCO meeting the shareholders were asked to vote on
the election of Board Members, the elimination of Fundamental Investment
Policies and the approval of new Fundamental Investment Policies. The meetings
for NCP, NCO, NQC, NVC and NUC were subsequently adjourned to January 13, 2009,
and additionally adjourned to March 17, 2009.
NCA NCP NCO
--------------------------------------------------------------------------------------------------------------------------------
Common and Common and
Preferred Preferred Preferred Preferred
shares voting shares voting shares voting shares voting
together together together together
Common Shares as a class as a class as a class as a class
--------------------------------------------------------------------------------------------------------------------------------
TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL
POLICIES RELATING TO INVESTMENTS IN MUNICIPAL
SECURITIES AND BELOW INVESTMENT
GRADE SECURITIES.
For 11,088,209 5,840,234 653 3,340,168 499
Against 614,761 706,192 107 142,107 179
Abstain 643,033 233,521 8 141,457 14
Broker Non-Votes 3,344,075 1,452,870 2,490 1,089,961 1,420
--------------------------------------------------------------------------------------------------------------------------------
Total 15,690,078 8,232,817 3,258 4,713,693 2,112
================================================================================================================================
TO APPROVE THE NEW FUNDAMENTAL POLICY
RELATING TO INVESTMENTS IN MUNICIPAL
SECURITIES.
For 11,154,950 5,900,319 670 3,332,750 500
Against 550,446 650,523 90 150,389 176
Abstain 640,607 229,105 8 140,593 16
Broker Non-Votes 3,344,075 1,452,870 2,490 1,089,961 1,420
--------------------------------------------------------------------------------------------------------------------------------
Total 15,690,078 8,232,817 3,258 4,713,693 2,112
================================================================================================================================
TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL
POLICY RELATING TO COMMODITIES.
For 10,991,107 5,791,750 688 3,316,783 512
Against 673,787 704,866 70 158,232 163
Abstain 681,109 283,331 10 148,717 17
Broker Non-Votes 3,344,075 1,452,870 2,490 1,089,961 1,420
--------------------------------------------------------------------------------------------------------------------------------
Total 15,690,078 8,232,817 3,258 4,713,693 2,112
================================================================================================================================
TO APPROVE THE NEW FUNDAMENTAL
POLICY RELATING TO COMMODITIES.
For 10,984,806 5,783,650 690 3,301,504 513
Against 672,587 723,992 68 169,607 162
Abstain 688,610 272,305 10 152,621 17
Broker Non-Votes 3,344,075 1,452,870 2,490 1,089,961 1,420
--------------------------------------------------------------------------------------------------------------------------------
Total 15,690,078 8,232,817 3,258 4,713,693 2,112
================================================================================================================================
TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL
POLICIES RELATING TO DERIVATIVES AND SHORT
SALES.
For 10,989,890 5,802,204 649 3,316,285 516
Against 673,204 723,509 110 160,526 155
Abstain 682,909 254,234 9 146,921 21
Broker Non-Votes 3,344,075 1,452,870 2,490 1,089,961 1,420
--------------------------------------------------------------------------------------------------------------------------------
Total 15,690,078 8,232,817 3,258 4,713,693 2,112
================================================================================================================================
TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL
POLICIES PROHIBITING INVESTMENT IN OTHER
INVESTMENT COMPANIES.
For 11,011,530 5,773,156 646 3,320,305 501
Against 697,964 754,386 113 160,458 171
Abstain 636,509 252,405 9 142,969 20
Broker Non-Votes 3,344,075 1,452,870 2,490 1,089,961 1,420
--------------------------------------------------------------------------------------------------------------------------------
Total 15,690,078 8,232,817 3,258 4,713,693 2,112
================================================================================================================================
20
NCA NCP NCO
--------------------------------------------------------------------------------------------------------------------------------
Common and Common and
Preferred Preferred Preferred Preferred
shares voting shares voting shares voting shares voting
together together together together
Common Shares as a class as a class as a class as a class
--------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS
REACHED AS FOLLOWS:
John P. Amboian
For 15,204,426 7,704,302 -- 4,572,834 --
Withhold 485,652 528,262 -- 139,939 --
--------------------------------------------------------------------------------------------------------------------------------
Total 15,690,078 8,232,564 -- 4,712,773 --
================================================================================================================================
Robert P. Bremner
For -- 7,708,406 -- 4,570,984 --
Withhold -- 524,158 -- 141,789 --
--------------------------------------------------------------------------------------------------------------------------------
Total -- 8,232,564 -- 4,712,773 --
================================================================================================================================
Jack B. Evans
For -- 7,708,250 -- 4,572,834 --
Withhold -- 524,314 -- 139,939 --
--------------------------------------------------------------------------------------------------------------------------------
Total -- 8,232,564 -- 4,712,773 --
================================================================================================================================
William C. Hunter
For 15,204,269 -- 3,063 -- 1,949
Withhold 485,809 -- 42 -- 143
--------------------------------------------------------------------------------------------------------------------------------
Total 15,690,078 -- 3,105 -- 2,092
================================================================================================================================
David J. Kundert
For 15,192,451 7,700,450 -- 4,570,034 1,949
Withhold 497,627 532,114 -- 142,739 143
--------------------------------------------------------------------------------------------------------------------------------
Total 15,690,078 8,232,564 -- 4,712,773 2,092
================================================================================================================================
William J. Schneider
For -- -- 3,063 -- --
Withhold -- -- 42 -- --
--------------------------------------------------------------------------------------------------------------------------------
Total -- -- 3,105 -- --
================================================================================================================================
Judith M. Stockdale
For -- 7,710,102 -- 4,572,834 --
Withhold -- 522,462 -- 139,939 --
--------------------------------------------------------------------------------------------------------------------------------
Total -- 8,232,564 -- 4,712,773 --
================================================================================================================================
Carole E. Stone
For -- 7,709,750 -- 4,572,309 --
Withhold -- 522,814 -- 140,464 --
--------------------------------------------------------------------------------------------------------------------------------
Total -- 8,232,564 -- 4,712,773 --
================================================================================================================================
Terence J. Toth
For 15,197,684 7,702,450 -- 4,572,309 --
Withhold 492,394 530,114 -- 140,464 --
--------------------------------------------------------------------------------------------------------------------------------
Total 15,690,078 8,232,564 -- 4,712,773 --
================================================================================================================================
21
NQC NVC NUC | Shareholder MEETING REPORT (continued)
NQC NVC
--------------------------------------------------------------------------------------------------------------------------------
Common and Common and
Preferred Preferred Preferred Preferred
shares voting shares voting shares voting shares voting
together together together together
as a class as a class as a class as a class
--------------------------------------------------------------------------------------------------------------------------------
TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL
POLICIES RELATING TO INVESTMENTS IN MUNICIPAL
SECURITIES AND BELOW INVESTMENT GRADE SECURITIES.
For 5,845,300 571 10,447,705 1,111
Against 323,693 116 708,155 137
Abstain 336,867 35 469,194 44
Broker Non-Votes 1,403,329 2,101 3,143,986 3,863
--------------------------------------------------------------------------------------------------------------------------------
Total 7,909,189 2,823 14,769,040 5,155
================================================================================================================================
TO APPROVE THE NEW FUNDAMENTAL POLICY
RELATING TO INVESTMENTS IN MUNICIPAL
SECURITIES.
For 5,864,771 571 10,488,891 1,118
Against 341,905 117 665,267 136
Abstain 299,184 34 470,896 38
Broker Non-Votes 1,403,329 2,101 3,143,986 3,863
--------------------------------------------------------------------------------------------------------------------------------
Total 7,909,189 2,823 14,769,040 5,155
================================================================================================================================
TO APPROVE THE ELIMINATION OF THE
FUNDAMENTAL
POLICY RELATING TO COMMODITIES.
For 5,762,372 563 10,363,309 1,085
Against 367,620 122 706,492 149
Abstain 375,868 37 555,253 58
Broker Non-Votes 1,403,329 2,101 3,143,986 3,863
--------------------------------------------------------------------------------------------------------------------------------
Total 7,909,189 2,823 14,769,040 5,155
================================================================================================================================
TO APPROVE THE NEW FUNDAMENTAL
POLICY RELATING TO COMMODITIES.
For 5,748,843 563 10,330,842 1,089
Against 374,379 122 725,087 148
Abstain 382,638 37 569,125 55
Broker Non-Votes 1,403,329 2,101 3,143,986 3,863
--------------------------------------------------------------------------------------------------------------------------------
Total 7,909,189 2,823 14,769,040 5,155
================================================================================================================================
TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL
POLICIES RELATING TO DERIVATIVES AND SHORT SALES.
For 5,765,870 565 10,299,255 1,090
Against 379,285 122 777,297 148
Abstain 360,705 35 548,502 54
Broker Non-Votes 1,403,329 2,101 3,143,986 3,863
--------------------------------------------------------------------------------------------------------------------------------
Total 7,909,189 2,823 14,769,040 5,155
================================================================================================================================
TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL
POLICIES PROHIBITING INVESTMENT IN OTHER
INVESTMENT COMPANIES.
For 5,793,915 565 10,332,430 1,070
Against 375,056 119 812,743 179
Abstain 336,889 38 479,881 43
Broker Non-Votes 1,403,329 2,101 3,143,986 3,863
--------------------------------------------------------------------------------------------------------------------------------
Total 7,909,189 2,823 14,769,040 5,155
================================================================================================================================
NUC
------------------------------------------------------------------------------------------------
Common and
Preferred Preferred
shares voting shares voting
together together
as a class as a class
------------------------------------------------------------------------------------------------
TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL
POLICIES RELATING TO INVESTMENTS IN MUNICIPAL
SECURITIES AND BELOW INVESTMENT GRADE SECURITIES.
For 9,457,997 1,040
Against 509,758 181
Abstain 340,019 42
Broker Non-Votes 2,871,067 3,857
------------------------------------------------------------------------------------------------
Total 13,178,841 5,120
================================================================================================
TO APPROVE THE NEW FUNDAMENTAL POLICY
RELATING TO INVESTMENTS IN MUNICIPAL
SECURITIES.
For 9,483,299 1,025
Against 496,909 184
Abstain 327,566 54
Broker Non-Votes 2,871,067 3,857
------------------------------------------------------------------------------------------------
Total 13,178,841 5,120
================================================================================================
TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL
POLICY RELATING TO COMMODITIES.
For 9,340,162 1,018
Against 532,505 190
Abstain 435,107 55
Broker Non-Votes 2,871,067 3,857
------------------------------------------------------------------------------------------------
Total 13,178,841 5,120
================================================================================================
TO APPROVE THE NEW FUNDAMENTAL
POLICY RELATING TO COMMODITIES.
For 9,358,885 1,010
Against 529,047 198
Abstain 419,842 55
Broker Non-Votes 2,871,067 3,857
------------------------------------------------------------------------------------------------
Total 13,178,841 5,120
================================================================================================
TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL
POLICIES RELATING TO DERIVATIVES AND SHORT SALES.
For 9,323,422 1,037
Against 585,210 180
Abstain 299,142 46
Broker Non-Votes 2,871,067 3,857
------------------------------------------------------------------------------------------------
Total 13,078,841 5,120
================================================================================================
TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL
POLICIES PROHIBITING INVESTMENT IN OTHER
INVESTMENT COMPANIES.
For 9,382,459 1,027
Against 566,658 197
Abstain 358,657 39
Broker Non-Votes 2,871,067 3,857
------------------------------------------------------------------------------------------------
Total 13,178,841 5,120
================================================================================================
22
NQC NVC
--------------------------------------------------------------------------------------------------------------------------------
Common and Common and
Preferred Preferred Preferred Preferred
shares voting shares voting shares voting shares voting
together together together together
as a class as a class as a class as a class
--------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS
REACHED AS FOLLOWS:
John P. Amboian
For 7,574,085 -- 14,023,480 --
Withhold 334,394 -- 739,502 --
--------------------------------------------------------------------------------------------------------------------------------
Total 7,908,479 -- 14,762,982 --
================================================================================================================================
Robert P. Bremner
For 7,575,081 -- 14,033,177 --
Withhold 333,398 -- 729,805 --
--------------------------------------------------------------------------------------------------------------------------------
Total 7,908,479 -- 14,762,982 --
================================================================================================================================
Jack B. Evans
For 7,569,455 -- 14,029,478 --
Withhold 339,024 -- 733,504 --
--------------------------------------------------------------------------------------------------------------------------------
Total 7,908,479 -- 14,762,982 --
================================================================================================================================
William C. Hunter
For -- 2,539 -- 4,795
Withhold -- 241 -- 353
--------------------------------------------------------------------------------------------------------------------------------
Total -- 2,780 -- 5,148
================================================================================================================================
David J. Kundert
For 7,569,600 -- 14,031,479 --
Withhold 338,879 -- 731,503 --
--------------------------------------------------------------------------------------------------------------------------------
Total 7,908,479 -- 14,762,982 --
================================================================================================================================
William J. Schneider
For -- 2,539 -- 4,795
Withhold -- 241 -- 353
--------------------------------------------------------------------------------------------------------------------------------
Total -- 2,780 -- 5,148
================================================================================================================================
Judith M. Stockdale
For 7,584,393 -- 14,016,747 --
Withhold 324,086 -- 746,235 --
--------------------------------------------------------------------------------------------------------------------------------
Total 7,908,479 -- 14,762,982 --
================================================================================================================================
Carole E. Stone
For 7,587,051 -- 14,030,887 --
Withhold 321,428 -- 732,095 --
--------------------------------------------------------------------------------------------------------------------------------
Total 7,908,479 -- 14,762,982 --
================================================================================================================================
Terence J. Toth
For 7,566,317 -- 14,014,446 --
Withhold 342,162 -- 748,536 --
--------------------------------------------------------------------------------------------------------------------------------
Total 7,908,479 -- 14,762,982 --
================================================================================================================================
NUC
-----------------------------------------------------------------------------------------------
Common and
Preferred Preferred
shares voting shares voting
together together
as a class as a class
-----------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS
REACHED AS FOLLOWS:
John P. Amboian
For 12,561,489 --
Withhold 612,441 --
-----------------------------------------------------------------------------------------------
Total 13,173,930 --
===============================================================================================
Robert P. Bremner
For 12,567,024 --
Withhold 606,906 --
-----------------------------------------------------------------------------------------------
Total 13,173,930 --
===============================================================================================
Jack B. Evans
For 12,568,480 --
Withhold 605,450 --
-----------------------------------------------------------------------------------------------
Total 13,173,930 --
===============================================================================================
William C. Hunter
For -- 4,846
Withhold -- 240
-----------------------------------------------------------------------------------------------
Total -- 5,086
===============================================================================================
David J. Kundert
For 12,565,069 --
Withhold 608,861 --
-----------------------------------------------------------------------------------------------
Total 13,173,930 --
===============================================================================================
William J. Schneider
For -- 4,846
Withhold -- 240
-----------------------------------------------------------------------------------------------
Total -- 5,086
===============================================================================================
Judith M. Stockdale
For 12,547,295 --
Withhold 626,635 --
-----------------------------------------------------------------------------------------------
Total 13,173,930 --
===============================================================================================
Carole E. Stone
For 12,564,501 --
Withhold 609,429 --
-----------------------------------------------------------------------------------------------
Total 13,173,930 --
===============================================================================================
Terence J. Toth
For 12,546,174 --
Withhold 627,756 --
-----------------------------------------------------------------------------------------------
Total 13,173,930 --
===============================================================================================
23
Report of INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
THE BOARDS OF DIRECTORS AND SHAREHOLDERS
NUVEEN CALIFORNIA MUNICIPAL VALUE FUND, INC.
NUVEEN CALIFORNIA PERFORMANCE PLUS MUNICIPAL FUND, INC.
NUVEEN CALIFORNIA MUNICIPAL MARKET OPPORTUNITY FUND, INC.
NUVEEN CALIFORNIA INVESTMENT QUALITY MUNICIPAL FUND, INC.
NUVEEN CALIFORNIA SELECT QUALITY MUNICIPAL FUND, INC.
NUVEEN CALIFORNIA QUALITY INCOME MUNICIPAL FUND, INC.
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of Nuveen California Municipal Value Fund, Inc.,
Nuveen California Performance Plus Municipal Fund, Inc., Nuveen California
Municipal Market Opportunity Fund, Inc., Nuveen California Investment Quality
Municipal Fund, Inc., Nuveen California Select Quality Municipal Fund, Inc. and
Nuveen California Quality Income Municipal Fund, Inc. (the "Funds"), as of
February 28, 2009, and the related statements of operations, changes in net
assets and the financial highlights for each of periods indicated therein. These
financial statements and financial highlights are the responsibility of the
Funds' management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. We were
not engaged to perform an audit of the Funds' internal control over financial
reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Funds' internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights, assessing the accounting principles used
and significant estimates made by management and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of February 28, 2009, by correspondence with the custodian.
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 February 28, 2009, the results of their operations, the
changes in their net assets and the financial highlights for each of the periods
indicated therein in conformity with US generally accepted accounting
principles.
/s/ ERNST & YOUNG LLP
Chicago, Illinois
April 22, 2009
24
NCA | Nuveen California Municipal Value Fund, Inc.
| Portfolio of INVESTMENTS February 28, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.5% (2.5% OF TOTAL INVESTMENTS)
$ 540 California County Tobacco Securitization Agency, Tobacco Settlement 6/15 at 100.00 BBB $ 469,303
Corporation, Asset-Backed Bonds, Sonoma County Tobacco
Securitization Series 2005, 4.250%, 6/01/21
2,000 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 1,205,680
Enhanced Tobacco Settlement Asset-Backed Bonds,
Series 2007A-1, 5.750%, 6/01/47
10,110 Golden State Tobacco Securitization Corporation, California, 6/22 at 100.00 BBB 3,963,727
Enhanced Tobacco Settlement Asset-Backed Bonds,
Series 2007A-2, 0.000%, 6/01/37
------------------------------------------------------------------------------------------------------------------------------------
12,650 Total Consumer Staples 5,638,710
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 0.7% (0.7% OF TOTAL INVESTMENTS)
140 California Educational Facilities Authority, Revenue Bonds, University 10/15 at 100.00 A3 117,520
of Redlands, Series 2005A, 5.000%, 10/01/35
California Educational Facilities Authority, Revenue Bonds, University
of the Pacific, Series 2006:
95 5.000%, 11/01/21 11/15 at 100.00 A2 91,410
125 5.000%, 11/01/25 11/15 at 100.00 A2 111,505
1,500 California Statewide Community Development Authority, Certificates 6/09 at 103.00 N/R 1,289,535
of Participation, San Diego Space and Science Foundation,
Series 1996, 7.500%, 12/01/26
------------------------------------------------------------------------------------------------------------------------------------
1,860 Total Education and Civic Organizations 1,609,970
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 7.5% (7.6% OF TOTAL INVESTMENTS)
310 California Health Facilities Financing Authority, Revenue Bonds, Kaiser 4/16 at 100.00 A+ 253,031
Permanante System, Series 2006, 5.000%, 4/01/37
2,040 California Health Facilities Financing Authority, Revenue Bonds, Sutter 11/16 at 100.00 AA- 1,536,915
Health, Series 2008, Trust 3146, 12.371%, 11/15/46 (IF)
560 California Statewide Communities Development Authority, Revenue Bonds, 3/15 at 100.00 A 444,360
Adventist Health System West, Series 2005A, 5.000%, 3/01/35
3,000 California Statewide Community Development Authority, Insured Health 7/17 at 100.00 AAA 2,815,050
Facility Revenue Bonds, Catholic Healthcare West, Series 2008K,
5.500%, 7/01/41 - AGC Insured
990 California Statewide Community Development Authority, Revenue Bonds, 3/16 at 100.00 A+ 794,584
Kaiser Permanante System, Series 2006, 5.000%, 3/01/41
1,460 California Statewide Community Development Authority, Revenue Bonds, 8/16 at 100.00 A+ 1,270,828
Kaiser Permanente System, Series 2001C, 5.250%, 8/01/31
2,710 California Statewide Community Development Authority, Revenue Bonds, No Opt. Call A1 2,871,760
Sherman Oaks Health System, Series 1998A, 5.000%, 8/01/22 -
AMBAC Insured
3,390 California Statewide Community Development Authority, Revenue Bonds, 11/15 at 100.00 AA- 2,890,755
Sutter Health, Series 2005A, 5.000%, 11/15/43
1,525 Loma Linda, California, Hospital Revenue Bonds, Loma Linda University 12/18 at 100.00 BBB 1,502,262
Medical Center, Series 2008A, 8.250%, 12/01/38
1,000 Sierra View Local Health Care District, California, Revenue Bonds, 9/17 at 100.00 N/R 723,980
Series 2007, 5.250%, 7/01/37
1,730 West Contra Costa Healthcare District, California, Certificates of 7/14 at 100.00 A+ 1,716,783
Participation, Series 2004, 5.375%, 7/01/21 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
18,715 Total Health Care 16,820,308
------------------------------------------------------------------------------------------------------------------------------------
25
NCA | Nuveen California Municipal Value Fund, Inc. (continued)
| Portfolio of INVESTMENTS February 28, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.4% (1.4% OF TOTAL INVESTMENTS)
$ 2,475 California Statewide Community Development Authority, Multifamily 7/09 at 102.00 N/R $ 1,802,270
Housing Revenue Bonds, Harbor City Lights, Series 1999Y, 6.650%,
7/01/39 (Alternative Minimum Tax)
445 Riverside County, California, Subordinate Lien Mobile Home Park 4/09 at 100.00 N/R 322,394
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 7/09 at 101.00 N/R 1,058,630
Charter Oak Mobile Home Estates Acquisition Project, Series 1998A,
Bonds, 5.700%, 7/01/28
------------------------------------------------------------------------------------------------------------------------------------
4,360 Total Housing/Multifamily 3,183,294
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 2.3% (2.4% OF TOTAL INVESTMENTS)
315 California Housing Finance Agency, Home Mortgage Revenue Bonds, 2/16 at 100.00 Aa2 312,379
Series 2006H, 5.750%, 8/01/30 - FGIC Insured (Alternative
Minimum Tax)
4,390 California Housing Finance Agency, Home Mortgage Revenue Bonds, 2/16 at 100.00 Aa2 3,220,592
Series 2007M, 4.700%, 8/01/36 (Alternative Minimum Tax)
2,125 California State Department of Veteran Affairs, Home Purchase Revenue 12/16 at 100.00 Aa2 1,665,511
Bonds, Series 2007, 5.000%, 12/01/42 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
6,830 Total Housing/Single Family 5,198,482
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.4% (0.4% OF TOTAL INVESTMENTS)
1,000 California Pollution Control Financing Authority, Solid Waste Disposal 1/16 at 102.00 BBB 830,400
Revenue Bonds, Waste Management Inc., Series 2002A, 5.000%, 1/01/22
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 5.8% (5.8% OF TOTAL INVESTMENTS)
ABAG Finance Authority for Non-Profit Corporations,
California, Cal-Mortgage Revenue Bonds, Elder Care Alliance of
Union City, Series 2004:
1,850 5.400%, 8/15/24 8/14 at 100.00 A 1,759,665
2,130 5.600%, 8/15/34 8/14 at 100.00 A 1,911,079
2,505 ABAG Finance Authority for Non-Profit Corporations, California, 4/09 at 101.00 BBB- 2,122,537
Certificates of Participation, American Baptist Homes of the West,
Series 1997A, 5.750%, 10/01/17
4,000 ABAG Finance Authority for Non-Profit Corporations, California, Health 8/18 at 100.00 A 3,544,360
Facility Revenue Bonds, The Institute on Aging, Series 2008A,
5.650%, 8/15/38
2,440 California Statewide Community Development Authority, Certificates of 4/09 at 101.00 BBB 2,183,336
Participation, Internext Group, Series 1999, 5.375%, 4/01/17
1,500 Riverside County Public Financing Authority, California, Certificates 5/09 at 101.00 BBB- 1,358,985
of Participation, Air Force Village West, Series 1999,
5.750%, 5/15/19
------------------------------------------------------------------------------------------------------------------------------------
14,425 Total Long-Term Care 12,879,962
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 1.9% (1.9% OF TOTAL INVESTMENTS)
500 California, General Obligation Bonds, Series 2004, 5.000%, 2/01/20 2/14 at 100.00 A1 506,730
1,500 Los Angeles Unified School District, California, General Obligation 7/16 at 100.00 AA- 1,515,510
Bonds, Series 2006F, 5.000%, 7/01/24 - FGIC Insured
2,000 Puerto Rico, General Obligation and Public Improvement Bonds, Series No Opt. Call AA- 1,886,980
2001A, 5.500%, 7/01/20 - MBIA Insured
270 Roseville Joint Union High School District, Placer County, California, 8/15 at 100.00 AA- 270,138
General Obligation Bonds, Series 2006B, 5.000%, 8/01/27 - FGIC
Insured
------------------------------------------------------------------------------------------------------------------------------------
4,270 Total Tax Obligation/General 4,179,358
------------------------------------------------------------------------------------------------------------------------------------
26
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 30.5% (30.8% OF TOTAL INVESTMENTS)
$ 1,000 Artesia Redevelopment Agency, California, Tax Allocation Revenue Bonds, 6/15 at 100.00 BBB $ 728,390
Artesia Redevelopment Project Area, Series 2007, 5.375%, 6/01/27
Bell Community Redevelopment Agency, California, Tax Allocation Bonds,
Bell Project Area, Series 2003:
3,000 5.500%, 10/01/23 - RAAI Insured 10/13 at 100.00 BBB+ 2,681,970
1,000 5.625%, 10/01/33 - RAAI Insured 10/13 at 100.00 BBB+ 832,050
2,400 Calexico Community Redevelopment Agency, California, Tax Allocation 8/13 at 102.00 A 2,072,352
Bonds, Merged Central Business and Residential District Project,
Series 2003C, 5.000%, 8/01/28 - AMBAC Insured
340 Capistrano Unified School District, Orange County, California, Special 9/15 at 100.00 AA- 305,031
Tax Bonds, Community Facilities District, Series 2005, 5.000%,
9/01/24 - FGIC Insured
1,005 Chino Redevelopment Agency, California, Merged Chino Redevelopment 9/16 at 101.00 A 773,860
Project Area Tax Allocation Bonds, Series 2006, 5.000%, 9/01/38 -
AMBAC Insured
Golden State Tobacco Securitization Corporation, California,
Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A:
20,110 5.000%, 6/01/35 - FGIC Insured 6/15 at 100.00 A 16,267,781
2,345 5.000%, 6/01/38 - FGIC Insured 6/15 at 100.00 A 1,853,723
Irvine, California, Unified School District, Community Facilities
District Special Tax Bonds, Series 2006A:
160 5.000%, 9/01/26 9/16 at 100.00 N/R 127,098
375 5.125%, 9/01/36 9/16 at 100.00 N/R 274,125
2,500 Kern County Board of Education, California, Certificates of 6/16 at 100.00 AA- 2,237,150
Participation, Series 2006A, 5.000%, 6/01/31 - MBIA Insured
615 Los Angeles Community Redevelopment Agency, California, Lease Revenue 9/15 at 100.00 A2 519,718
Bonds, Manchester Social Services Project, Series 2005,
5.000%, 9/01/37 - AMBAC Insured
2,750 Los Angeles County Schools, California, Certificates of Participation, 9/13 at 100.00 AAA 2,689,665
Pooled Financing Program, Regionalized Business Services Corporation,
Series 2003A, 5.000%, 9/01/28 - FSA Insured
3,665 Milpitas, California, Local Improvement District 20 Limited Obligation 3/09 at 103.00 N/R 3,585,946
Bonds, Series 1998A, 5.650%, 9/02/13
Modesto Schools Infrastructure Financing Agency, Stanislaus County,
California, Special Tax Revenue Bonds, Series 2004:
1,045 5.250%, 9/01/22 - AMBAC Insured 9/14 at 100.00 A 937,114
1,145 5.250%, 9/01/23 - AMBAC Insured 9/14 at 100.00 A 1,014,092
1,255 5.250%, 9/01/24 - AMBAC Insured 9/14 at 100.00 A 1,095,351
420 Oakland Redevelopment Agency, California, Subordinate Lien Tax 3/13 at 100.00 AA- 412,297
Allocation Bonds, Central District Redevelopment Project,
Series 2003, 5.500%, 9/01/18 - FGIC Insured
8,000 Palmdale Elementary School District, Los Angeles County, California, 8/09 at 101.00 AAA 7,685,360
Special Tax Bonds, Community Facilities District 90-1, Series 1999,
5.800%, 8/01/29 - FSA Insured
290 Rialto Redevelopment Agency, California, Tax Allocation Bonds, Merged 9/15 at 100.00 A- 247,324
Project Area, Series 2005A, 5.000%, 9/01/35 - SYNCORA GTY Insured
5,000 Riverside County Redevelopment Agency, California, Tax Allocation 10/14 at 100.00 A- 4,224,250
Housing Bonds, Series 2004A, 5.000%, 10/01/37 - SYNCORA GTY Insured
360 Roseville, California, Certificates of Participation, Public Facilities, 8/13 at 100.00 A+ 344,430
Series 2003A, 5.000%, 8/01/25 - AMBAC Insured
3,130 San Francisco Redevelopment Agency, California, Lease Revenue Bonds, 7/11 at 102.00 AA- 3,207,843
Moscone Convention Center, Series 2004, 5.250%, 7/01/23 - AMBAC
Insured
2,750 San Jose Financing Authority, California, Lease Revenue Refunding Bonds, 9/11 at 100.00 AA+ 2,844,518
Convention Center Project, Series 2001F, 5.000%, 9/01/20 - MBIA
Insured
27
NCA | Nuveen California Municipal Value Fund, Inc. (continued)
| Portfolio of INVESTMENTS February 28, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 625 San Mateo Union High School District, San Mateo County, California, 12/17 at 100.00 A $ 524,781
Certificates of Participation, Phase 1, Series 2007A, 5.000%,
12/15/30 - AMBAC Insured
3,000 Santa Clara County Financing Authority, California, Insured Revenue 8/17 at 100.00 A+ 2,841,720
Bonds, El Camino Hospital, Series 2007A, 5.750%, 2/01/41 - AMBAC
Insured
740 Shafter Joint Powers Financing Authority, California, Lease Revenue 7/09 at 100.00 A- 741,502
Bonds, Community Correctional Facility Acquisition Project, Series
1997A, 5.950%, 1/01/11
1,000 Simi Valley, California, Certificates of Participation, Series 2004, 9/14 at 100.00 A+ 969,560
5.000%, 9/01/24 - AMBAC Insured
1,500 Tehachapi Redevelopment Agency, California, Tax Allocation Bonds, No Opt. Call A3 1,171,335
Series 2007, 5.250%, 12/01/37 - RAAI Insured
1,925 Travis Unified School District, Solano County, California, Certificates 9/16 at 100.00 N/R 1,652,690
of Participation, Series 2006, 5.000%, 9/01/26 - FGIC Insured
2,500 Ventura County Superintendent of Schools, California, Certificates 12/11 at 100.00 AA- 2,472,825
Participation, Series 2003, 5.000%, 12/01/27 - AMBAC Insured
1,185 Vista Joint Powers Financing Authority, California, Special Tax Lease 3/09 at 100.00 N/R 1,022,228
Revenue Refunding Bonds, Community Facilities District 90-2, Series
1997A, 5.875%, 9/01/20
-----------------------------------------------------------------------------------------------------------------------------------
77,135 Total Tax Obligation/Limited 68,358,079
-----------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 4.3% (4.4% OF TOTAL INVESTMENTS)
2,500 Bay Area Toll Authority, California, Revenue Bonds, San Francisco Bay 4/16 at 100.00 AA 2,463,750
Area Toll Bridge, Series 2006, 5.000%, 4/01/31 (UB)
5,500 Foothill/Eastern Transportation Corridor Agency, California, Toll Road 1/14 at 101.00 BBB- 4,862,880
Revenue Refunding Bonds, Series 1999, 0.000%, 1/15/27
1,250 Fresno, California, Airport Revenue Bonds, Series 2000A, 5.500%, 7/10 at 101.00 AAA 1,182,400
7/01/30 - FSA Insured
220 Palm Springs Financing Authority, California, Palm Springs 7/14 at 102.00 N/R 149,866
International Airport Revenue Bonds, Series 2006, 5.550%, 7/01/28
(Alternative Minimum Tax)
1,245 San Francisco Airports Commission, California, Revenue Bonds, San 5/09 at 101.00 AA 1,021,821
Francisco International Airport, Second Series 1999, Issue 23A,
5.000%, 5/01/30 - FGIC Insured (Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
10,715 Total Transportation 9,680,717
-----------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 27.3% (27.5% OF TOTAL INVESTMENTS) (4)
Burbank Redevelopment Agency, California, Tax Allocation
Bonds, Golden State Redevelopment Project, Series 2003:
1,700 5.625%, 12/01/28 (Pre-refunded 12/01/13) - FGIC Insured 12/13 at 100.00 N/R (4) 1,975,298
5,010 5.750%, 12/01/33 (Pre-refunded 12/01/13) - FGIC Insured 12/13 at 100.00 N/R (4) 5,849,576
2,400 California County Tobacco Securitization Agency, Tobacco Settlement 6/12 at 100.00 N/R (4) 2,626,632
Asset-Backed Bonds, Sonoma County Tobacco Funding Corporation,
Series 2002B, 5.500%, 6/01/30 (Pre-refunded 6/01/12)
3,300 California Department of Water Resources, Power Supply Revenue Bonds, 5/12 at 101.00 Aaa 3,707,319
Series 2002A, 5.125%, 5/01/18 (Pre-refunded 5/01/12)
3,115 California Educational Facilities Authority, Revenue Bonds, Pooled 6/10 at 101.00 Baa3 (4) 3,340,433
College and University Projects, Series 2000C, 6.750%, 6/01/30 (ETM)
2,845 California, General Obligation Bonds, Series 2004, 5.250%, 4/01/34 4/14 at 100.00 AAA 3,292,177
(Pre-refunded 4/01/14)
3,260 California, Various Purpose General Obligation Bonds, Series 2000, 3/10 at 101.00 AAA 3,449,341
5.750%, 3/01/27 (Pre-refunded 3/01/10) - MBIA Insured
2,065 Contra Costa County, California, GNMA Mortgage-Backed Securities No Opt. Call AAA 2,784,446
Program Home Mortgage Revenue Bonds, Series 1988, 8.250%, 6/01/21
(Alternative Minimum Tax) (ETM)
28
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 2,335 Golden State Tobacco Securitization Corporation, California, Tobacco 6/13 at 100.00 AAA $ 2,565,745
Settlement Asset-Backed Bonds, Series 2003A-1, 6.250%, 6/01/33
(Pre-refunded 6/01/13)
1,330 Los Angeles Community Redevelopment Agency, California, Tax Allocation 7/09 at 100.00 BBB (4) 1,337,608
Refunding Bonds, Central Business District Redevelopment Project,
Series 1987G, 6.750%, 7/01/10 (ETM)
5,000 Orange County Sanitation District, California, Certificates of 8/13 at 100.00 AAA 5,758,100
Participation, Series 2003, 5.250%, 2/01/27 (Pre-refunded 8/01/13) -
FGIC Insured
8,565 Palmdale, California, GNMA Mortgage-Backed Securities Program Single No Opt. Call AAA 6,564,644
Family Mortgage Revenue Bonds, Series 1988A, 0.000%, 3/01/17 (ETM)
3,300 Puerto Rico Highway and Transportation Authority, Highway Revenue Bonds, 7/12 at 100.00 AAA 3,670,359
Series 2002D, 5.375%, 7/01/36 (Pre-refunded 7/01/12)
20,415 San Bernardino County, California, GNMA Mortgage-Backed Securities No Opt. Call AAA 10,792,798
Program Single Family Home Mortgage Revenue Bonds, Series 1988A,
0.000%, 9/01/21 (Alternative Minimum Tax) (ETM)
3,000 Virgin Islands Public Finance Authority, Gross Receipts Taxes Loan 10/10 at 101.00 BBB+ (4) 3,286,560
Note, Series 1999A, 6.500%, 10/01/24 (Pre-refunded 10/01/10)
------------------------------------------------------------------------------------------------------------------------------------
67,640 Total U.S. Guaranteed 61,001,036
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 6.5% (6.6% OF TOTAL INVESTMENTS)
2,445 California Statewide Community Development Authority, Certificates of 6/09 at 100.00 N/R 1,888,151
Participation Refunding, Rio Bravo Fresno Project, Series 1999A,
6.500%, 12/01/18 (5)
1,800 Long Beach Bond Finance Authority, California, Natural Gas Purchase No Opt. Call A+ 1,328,616
Revenue Bonds, Series 2007A, 5.500%, 11/15/37
21,500 Merced Irrigation District, California, Certificates of Participation, 9/16 at 64.56 A 7,833,740
Water and Hydroelectric System Projects, Series 2008A, 0.000%,
9/01/23
605 Merced Irrigation District, California, Electric System Revenue Bonds, 9/15 at 100.00 N/R 432,829
Series 2005, 5.125%, 9/01/31 - SYNCORA GTY Insured
3,470 Puerto Rico Industrial, Tourist, Educational, Medical and Environmental 6/10 at 101.00 Baa3 3,102,215
Control Facilities Financing Authority, Co-Generation Facility
Revenue Bonds, Series 2000A, 6.625%, 6/01/26 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
29,820 Total Utilities 14,585,551
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 7.9% (8.0% OF TOTAL INVESTMENTS)
1,480 California Department of Water Resources, Water System Revenue Bonds, 6/15 at 100.00 AAA 1,529,669
Central Valley Project, Series 2005AD, 5.000%, 12/01/22 - FSA
Insured
1,500 Castaic Lake Water Agency, California, Certificates of Participation, 8/16 at 100.00 AA- 1,424,865
Series 2006C, 5.000%, 8/01/36 - MBIA Insured
410 Healdsburg Public Financing Authority, California, Wastewater Revenue 4/16 at 100.00 AA- 363,908
Bonds, Series 2006, 5.000%, 4/01/36 - MBIA Insured
500 Los Angeles County Sanitation Districts Financing Authority, 10/13 at 100.00 AAA 514,220
California, Senior Revenue Bonds, Capital Projects, Series 2003A,
5.000%, 10/01/23 - FSA Insured
5,000 Los Angeles Department of Water and Power, California, Waterworks 7/17 at 100.00 AA 4,782,700
Revenue Bonds, Series 2007A-2, 5.000%, 7/01/44 - AMBAC Insured
Madera Irrigation District. California, Water Revenue Refunding Bonds,
Series 2008:
1,850 5.500%, 1/01/33 1/18 at 100.00 A- 1,832,869
3,000 5.500%, 1/01/38 1/18 at 100.00 A- 2,952,870
29
NCA | Nuveen California Municipal Value Fund, Inc. (continued)
| Portfolio of INVESTMENTS February 28, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 1,580 San Diego County Water Authority, California, Water Revenue Refunding 5/12 at 101.00 AA+ $ 1,597,680
Certificates of Participation, Series 2002A, 5.000%, 5/01/26 -
MBIA Insured
3,500 Woodbridge Irrigation District, California, Certificates of 7/13 at 100.00 BBB+ 2,745,260
Participation, Water Systems Project, Series 2003, 5.625%,
7/01/43
------------------------------------------------------------------------------------------------------------------------------------
18,820 Total Water and Sewer 17,744,041
------------------------------------------------------------------------------------------------------------------------------------
$ 268,240 Total Investments (cost $230,481,378) - 99.0% 221,709,908
============------------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (0.6)% (1,250,000)
----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.6% 3,488,715
----------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 223,948,623
======================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common Shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's Group ("Standard &
Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
The Portfolio of Investments may reflect the ratings on certain bonds
insured by ACA, AGC, AMBAC, FGIC, FSA, MBIA, RAAI and SYNCORA as of
February 28, 2009. Please see the Portfolio Manager's Commentary for an
expanded discussion of the affect on the Fund of changes to the ratings of
certain bonds in the portfolio resulting from changes to the ratings of
the underlying insurers both during the period and after period end.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) This debt has been restructured to accommodate capital maintenance at the
facility. Major highlights of the debt restructuring include the
following: (1) the principal balance outstanding on and after December 1,
2007, shall accrue interest at a rate of 6.500% per annum commencing
December 1, 2007; (2) the interest shall accrue but not be payable on June
1, 2008 or December 1, 2008, but shall instead be deferred and paid by the
end of calendar year 2011; (3) no principal component shall be pre-payable
from the Minimum Sinking Fund Account during calendar years 2008 and 2009
but such pre-payments shall recommence beginning in calendar year 2010
according to a revised schedule. Management believes that the
restructuring is in the best interest of Fund shareholders and that it is
more-likely-than-not that the borrower will fulfill its obligation.
Consequently, the Fund continues to accrue interest on this obligation.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140.
See accompanying notes to financial statements.
30
NCP | Nuveen California Performance Plus Municipal Fund, Inc.
| Portfolio of INVESTMENTS February 28, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 4.4% (2.8% OF TOTAL INVESTMENTS)
$ 645 California County Tobacco Securitization Agency, Tobacco Settlement 6/15 at 100.00 BBB $ 560,557
Asset-Backed Bonds, Sonoma County Tobacco Securitization
Corporation, Series 2005, 4.250%, 6/01/21
3,000 Golden State Tobacco Securitization Corporation, California, Enhanced 6/17 at 100.00 BBB 1,808,520
Tobacco Settlement Asset-Backed Bonds, Series 2007A-1, 5.750%, 6/01/47
12,135 Golden State Tobacco Securitization Corporation, California, Enhanced 6/22 at 100.00 BBB 4,757,648
Tobacco Settlement Asset-Backed Bonds, Series 2007A-2, 0.000%, 6/01/37
------------------------------------------------------------------------------------------------------------------------------------
15,780 Total Consumer Staples 7,126,725
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 10.6% (6.8% OF TOTAL INVESTMENTS)
160 California Educational Facilities Authority, Revenue Bonds, University 10/15 at 100.00 A3 134,309
of Redlands, Series 2005A, 5.000%, 10/01/35
California Educational Facilities Authority, Revenue Bonds, University
of the Pacific, Series 2006:
110 5.000%, 11/01/21 11/15 at 100.00 A2 105,843
150 5.000%, 11/01/25 11/15 at 100.00 A2 133,806
4,730 California Infrastructure Economic Development Bank, Revenue Bonds, 10/11 at 101.00 A- 4,809,038
J. David Gladstone Institutes, Series 2001, 5.500%, 10/01/21
2,645 California State Public Works Board, Lease Revenue Bonds, University 3/18 at 100.00 AA- 2,248,515
of California Regents, Trust 1065, 8.969%, 3/01/33 (IF)
4,730 California State University, Systemwide Revenue Bonds, Series 2002A, 11/12 at 100.00 Aa3 4,978,656
5.000%, 11/01/19 - AMBAC Insured
4,000 San Diego County, California, Certificates of Participation, Burnham 9/15 at 102.00 Baa3 2,672,600
Institute, Series 2006, 5.000%, 9/01/34
2,000 University of California, Revenue Bonds, Multi-Purpose Projects, 5/13 at 100.00 AA 2,192,400
Series 2003A, 5.125%, 5/15/17 -
AMBAC Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
18,525 Total Education and Civic Organizations 17,275,167
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 9.1% (5.8% OF TOTAL INVESTMENTS)
375 California Health Facilities Financing Authority, Revenue Bonds, 4/16 at 100.00 A+ 306,086
Kaiser Permanante System, Series 2006, 5.000%, 4/01/37
2,420 California Health Facilities Financing Authority, Revenue Bonds, 11/16 at 100.00 AA- 1,823,204
Sutter Health, Series 2008, Trust 3146, 12.371%, 11/15/46 (IF)
1,650 California Municipal Financing Authority, Certificates of 2/17 at 100.00 Baa2 1,070,289
Participation, Community Hospitals of Central California,
Series 2007, 5.250%, 2/01/46
895 California Statewide Communities Development Authority, Revenue Bonds, 7/18 at 100.00 AAA 582,609
Saint Joseph Health System, Trust 2554, 18.216%, 7/01/47 - FSA
Insured (IF)
1,000 California Statewide Community Development Authority, Revenue Bonds, 7/15 at 100.00 BBB 668,080
Daughters of Charity Health System, Series 2005A, 5.250%, 7/01/30
1,175 California Statewide Community Development Authority, Revenue Bonds, 3/16 at 100.00 A+ 943,067
Kaiser Permanante System, Series 2006, 5.000%, 3/01/41
31
NCP | Nuveen California Performance Plus Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS February 28, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 1,755 California Statewide Community Development Authority, Revenue Bonds, 8/16 at 100.00 A+ $ 1,527,605
Kaiser Permanente System, Series 2001C, 5.250%, 8/01/31
1,355 California Statewide Community Development Authority, Revenue Bonds, No Opt. Call A1 1,435,880
Sherman Oaks Health System, Series 1998A, 5.000%, 8/01/22 -
AMBAC Insured
4,045 California Statewide Community Development Authority, Revenue Bonds, 11/15 at 100.00 AA- 3,449,293
Sutter Health, Series 2005A, 5.000%, 11/15/43
1,750 Loma Linda, California, Hospital Revenue Bonds, Loma Linda University 12/18 at 100.00 BBB 1,723,908
Medical Center, Series 2008A, 8.250%, 12/01/38
1,600 The Regents of the University of California, Medical Center Pooled 5/15 at 101.00 Aa2 1,398,784
Revenue Bonds, Series 2007A, 4.500%, 5/15/37 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
18,020 Total Health Care 14,928,805
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 3.2% (2.1% OF TOTAL INVESTMENTS)
1,500 California Statewide Community Development Authority, Student Housing 8/12 at 100.00 Baa1 1,328,175
Revenue Bonds, EAH - Irvine East Campus Apartments, LLC Project,
Series 2002A, 5.500%, 8/01/22 - ACA Insured
3,915 Los Angeles, California, GNMA Collateralized Multifamily Housing 3/09 at 100.00 AAA 3,915,822
Revenue Bonds, Ridgecroft Apartments, Series 1997E, 6.250%, 9/20/39
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
5,415 Total Housing/Multifamily 5,243,997
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.2% (0.1% OF TOTAL INVESTMENTS)
375 California Housing Finance Agency, Home Mortgage Revenue Bonds, 2/16 at 100.00 Aa2 371,880
Series 2006H, 5.750%, 8/01/30 - FGIC Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.6% (0.4% OF TOTAL INVESTMENTS)
1,250 California Pollution Control Financing Authority, Solid Waste Disposal 1/16 at 102.00 BBB 1,038,000
Revenue Bonds, Waste Management Inc., Series 2002A, 5.000%, 1/01/22
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.1% (1.4% OF TOTAL INVESTMENTS)
4,500 California Statewide Communities Development Authority, Revenue Bonds, 12/17 at 100.00 Baa1 3,449,475
Inland Regional Center Project, Series 2007, 5.250%, 12/01/27
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 18.7% (12.0% OF TOTAL INVESTMENTS)
500 California, General Obligation Bonds, Series 2004, 5.000%, 2/01/23 2/14 at 100.00 A1 497,850
3,550 Centinela Valley Union High School District, Los Angeles County, No Opt. Call AA- 3,422,591
California, General Obligation Bonds, Series 2002A, 5.250%,
2/01/26 - MBIA Insured
1,400 Los Rios Community College District, Sacramento, El Dorado and Yolo 8/14 at 102.00 AAA 1,468,964
Counties, California, General Obligation Bonds, Series 2006,
5.000%, 8/01/24 - FSA Insured (UB)
3,200 Murrieta Valley Unified School District, Riverside County, California, 9/17 at 100.00 AAA 2,888,960
General Obligation Bonds, Series 2007, 4.500%,
9/01/30 - FSA Insured
4,765 North Orange County Community College District, California, General No Opt. Call AA 1,732,602
Obligation Bonds, Series 2003B, 0.000%, 8/01/27 - FGIC Insured
2,575 Oxnard School District, Ventura County, California, General Obligation 2/22 at 103.00 AA- 2,525,174
Refunding Bonds, Series 2001A, 5.750%, 8/01/30 - MBIA Insured
6,000 Puerto Rico, General Obligation and Public Improvement Bonds, No Opt. Call AA 6,240,660
Series 1993, 7.000%, 7/01/10 - MBIA Insured
Riverside Community College District, California, General Obligation
Bonds, Series 2004A:
15 5.250%, 8/01/25 - MBIA Insured 8/14 at 100.00 AA- 15,470
20 5.250%, 8/01/26 - MBIA Insured 8/14 at 100.00 AA- 20,521
325 Roseville Joint Union High School District, Placer County, California, 8/15 at 100.00 AA- 325,166
General Obligation Bonds, Series 2006B, 5.000%,
8/01/27 - FGIC Insured
32
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 4,000 San Diego Unified School District, San Diego County, California, 7/13 at 101.00 AAA $ 4,351,200
General Obligation Bonds,
Series 2003E, 5.250%, 7/01/22 - FSA Insured
3,000 San Jose-Evergreen Community College District, Santa Clara County, 9/10 at 100.00 AA 3,154,590
California, General Obligation Bonds,
Series 2000B, 5.600%, 9/01/24 - FGIC Insured
2,200 Santa Maria Joint Union High School District, Santa Barbara and No Opt. Call Aa3 2,543,464
San Luis Obispo Counties, California, General Obligation Bonds,
Series 2003B, 5.625%, 8/01/24 - FSA Insured
1,440 Southwestern Community College District, San Diego County, California, 8/15 at 102.00 AA- 1,484,582
General Obligation Bonds,
Series 2005, 5.000%, 8/01/24 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
32,990 Total Tax Obligation/General 30,671,794
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 37.9% (24.3% OF TOTAL INVESTMENTS)
5,045 California State Public Works Board, Lease Revenue Bonds, Department 3/12 at 100.00 A 5,212,090
of Corrections, Series 2002A, 5.250%, 3/01/22 - AMBAC Insured
1,575 California State Public Works Board, Lease Revenue Bonds, Department 12/13 at 100.00 A2 1,611,887
of General Services, Series 2003D, 5.500%, 6/01/20
3,010 California State Public Works Board, Lease Revenue Bonds, Department 6/14 at 100.00 A2 3,086,875
of Mental Health, Coalinga State Hospital,
Series 2004A, 5.500%, 6/01/19
2,195 California, Economic Recovery Revenue Bonds, 7/14 at 100.00 A+ 2,335,414
Series 2004A, 5.000%, 7/01/15
400 Capistrano Unified School District, Orange County, California, Special 9/15 at 100.00 AA- 358,860
Tax Bonds, Community Facilities District,
Series 2005, 5.000%, 9/01/24 - FGIC Insured
1,210 Chino Redevelopment Agency, California, Merged Chino Redevelopment 9/16 at 101.00 A 931,712
Project Area Tax Allocation Bonds,
Series 2006, 5.000%, 9/01/38 - AMBAC Insured
2,000 Coachella Valley Unified School District, Riverside County, 9/16 at 100.00 Baa1 1,597,800
California, Certificates of Participation,
Series 2007, 5.000%, 9/01/31 - AMBAC Insured
2,500 Corona Public Financing Authority, California, Superior Lien Revenue 9/09 at 102.00 AAA 2,570,950
Bonds, Series 1999A, 5.000%, 9/01/20 - FSA Insured
4,980 Golden State Tobacco Securitization Corporation, California, Tobacco 6/15 at 100.00 A 3,746,205
Settlement Asset-Backed Revenue Bonds,
Series 2005A, 5.000%, 6/01/45 - AMBAC Insured
1,045 Hawthorne Community Redevelopment Agency, California, Project Area 2 9/16 at 100.00 A- 920,959
Tax Allocation Bonds,
Series 2006, 5.250%, 9/01/36 - SYNCORA GTY Insured
1,750 Hesperia Community Redevelopment Agency, California, Tax Allocation 9/15 at 100.00 Baa1 1,539,808
Bonds, Series 2005A, 5.000%, 9/01/25 - SYNCORA GTY Insured
Irvine, California, Unified School District, Community Facilities
District Special Tax Bonds, Series 2006A:
195 5.000%, 9/01/26 9/16 at 100.00 N/R 154,900
450 5.125%, 9/01/36 9/16 at 100.00 N/R 328,950
730 Los Angeles Community Redevelopment Agency, California, Lease Revenue 9/15 at 100.00 A2 616,901
Bonds, Manchester Social Services Project,
Series 2005, 5.000%, 9/01/37 - AMBAC Insured
10,000 Los Angeles County Public Works Financing Authority, California, 9/16 at 100.00 AA- 8,943,700
Lease Revenue Bonds, Series 2006B, 5.000%, 9/01/31 - FGIC Insured
4,000 Los Angeles, California, Municipal Improvement Corporation, Lease 1/17 at 100.00 AA- 3,668,600
Revenue Bonds, Police Headquarters,
Series 2006A, 4.750%, 1/01/31 - FGIC Insured
1,395 Moreno Valley Unified School District, Riverside County, California, 3/14 at 100.00 AAA 1,429,247
Certificates of Participation,
Series 2005, 5.000%, 3/01/22 - FSA Insured
3,500 Murrieta Redevelopment Agency, California, Tax Allocation Bonds, 8/17 at 100.00 AA- 2,958,200
Series 2007A, 5.000%, 8/01/37 - MBIA Insured
33
NCP | Nuveen California Performance Plus Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS February 28, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,000 Paramount Redevelopment Agency, California, Tax Allocation Bonds, 8/13 at 100.00 AA- $ 963,520
Redevelopment Project Area 1,
Series 2003, 5.000%, 8/01/23 - MBIA Insured
350 Rialto Redevelopment Agency, California, Tax Allocation Bonds, 9/15 at 100.00 A- 298,494
Merged Project Area, Series
2005A, 5.000%, 9/01/35 - SYNCORA GTY Insured
1,500 Riverside County Public Financing Authority, California, Tax 10/15 at 100.00 BBB 1,128,300
Allocation Bonds, Multiple
Projects, Series 2005A, 5.000%, 10/01/37 - SYNCORA GTY Insured
1,000 Rohnert Park Community Development Commission, California, 8/17 at 100.00 AA- 845,200
Redevelopment Project Tax
Allocation Bonds, Series 2007R, 5.000%, 8/01/37 - FGIC Insured
435 Roseville, California, Certificates of Participation, Public 8/13 at 100.00 A+ 416,186
Facilities, Series 2003A, 5.000%,
8/01/25 - AMBAC Insured
1,000 Sacramento City Financing Authority, California, Lease Revenue No Opt. Call AA 1,094,030
Refunding Bonds, Series 1993A,
5.400%, 11/01/20 - MBIA Insured
5,000 San Marcos Public Facilities Authority, California, Tax Allocation 8/15 at 100.00 A 4,264,950
Bonds, Project Areas 2 and 3,
Series 2005C, 5.000%, 8/01/35 - AMBAC Insured
750 San Mateo Union High School District, San Mateo County, 12/17 at 100.00 A 629,738
California, Certificates of Participation, Phase 1,
Series 2007A, 5.000%, 12/15/30 - AMBAC Insured
Santa Clara Redevelopment Agency, California, Tax Allocation
Bonds, Bayshore North Project, Series 2003:
2,695 5.000%, 6/01/20 - MBIA Insured 6/13 at 100.00 AA- 2,706,184
1,500 5.000%, 6/01/21 - MBIA Insured 6/13 at 100.00 AA- 1,488,360
Sweetwater Union High School District, San Diego County,
California, Certificates of Participation, Series 2002:
2,000 5.000%, 9/01/23 - FSA Insured 9/12 at 102.00 AAA 2,034,640
4,015 5.000%, 9/01/24 - FSA Insured 9/12 at 102.00 AAA 4,059,285
------------------------------------------------------------------------------------------------------------------------------------
67,225 Total Tax Obligation/Limited 61,941,945
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 28.6% (18.3% OF TOTAL INVESTMENTS)
1,430 Bay Area Toll Authority, California, Revenue Bonds, San Francisco 4/16 at 100.00 AA 1,409,265
Bay Area Toll Bridge, Series 2006, 5.000%, 4/01/31 (UB)
1,935 Bay Area Toll Authority, California, Revenue Bonds, San Francisco 4/18 at 100.00 AA 1,879,583
Bay Area Toll Bridge, Series
2008, Trust 3211, 12.855%, 4/01/39 (IF)
6,500 Foothill/Eastern Transportation Corridor Agency, California, Toll 1/14 at 101.00 BBB- 5,604,235
Road Revenue Refunding
Bonds, Series 1999, 0.000%, 1/15/29
Long Beach, California, Harbor Revenue Bonds, Series 2000A:
2,740 5.750%, 5/15/14 (Alternative Minimum Tax) 5/10 at 101.00 AA 2,812,035
11,885 5.750%, 5/15/15 (Alternative Minimum Tax) 5/10 at 101.00 AA 12,159,662
8,550 Port of Oakland, California, Revenue Bonds, Series 2000K, 5.750%, 5/10 at 100.00 AA- 7,348,725
11/01/29 - FGIC Insured (Alternative Minimum Tax)
14,000 San Francisco Airports Commission, California, Revenue Bonds, San 5/10 at 101.00 AAA 13,551,157
Francisco International Airport, Second Series 2000,
Issue 25, 5.500%, 5/01/24 - FSA Insured (Alternative Minimum Tax)
2,000 San Francisco Airports Commission, California, Revenue Refunding 5/11 at 100.00 AA- 2,015,860
Bonds, San Francisco International Airport, Second Series 2001,
Issue 27B, 5.000%, 5/01/23 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
49,040 Total Transportation 46,780,522
------------------------------------------------------------------------------------------------------------------------------------
34
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 14.1% (9.1% OF TOTAL INVESTMENTS) (4)
$ 1,125 California County Tobacco Securitization Agency, Tobacco 6/10 at 100.00 N/R (4) $ 1,144,665
Settlement Asset-Backed Bonds, Sonoma County Tobacco Funding
Corporation, Series 2002B, 5.125%, 6/01/20 (Pre-refunded 6/01/10)
5,360 California Infrastructure Economic Development Bank, First Lien No Opt. Call AAA 5,949,761
Revenue Bonds, San Francisco Bay Area Toll Bridge,
Series 2003A, 5.000%, 7/01/23 - FSA Insured (ETM)
4,000 Contra Costa County, California, GNMA Mortgage-Backed Securities No Opt. Call AAA 5,393,600
Program Home Mortgage Revenue Bonds,
Series 1988, 8.250%, 6/01/21 (Alternative Minimum Tax) (ETM)
3,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 3,534,510
Tobacco Settlement Asset-Backed Bonds,
Series 2003A-1, 6.750%, 6/01/39 (Pre-refunded 6/01/13)
2,500 Los Angeles Unified School District, California, General 7/10 at 100.00 AA- (4) 2,648,275
Obligation Bonds, Series 2000D, 5.375%, 7/01/25
(Pre-refunded 7/01/10) - FGIC Insured
4,000 Puerto Rico Highway and Transportation Authority, Highway Revenue 7/12 at 100.00 AAA 4,448,920
Bonds, Series 2002D, 5.375%, 7/01/36 (Pre-refunded 7/01/12)
------------------------------------------------------------------------------------------------------------------------------------
19,985 Total U.S. Guaranteed 23,119,731
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 11.4% (7.3% OF TOTAL INVESTMENTS)
4,210 California Statewide Community Development Authority, Certificates 6/09 at 100.00 N/R 3,251,173
of Participation Refunding, Rio Bravo Fresno Project,
Series 1999A, 6.500%, 12/01/18 (5)
2,140 Long Beach Bond Finance Authority, California, Natural Gas No Opt. Call A+ 1,579,577
Purchase Revenue Bonds, Series 2007A, 5.500%, 11/15/37
725 Los Angeles Department of Water and Power, California, Power System 7/13 at 100.00 AA- 752,151
Revenue Bonds, Series 2003A-2, 5.000%, 7/01/21 - MBIA Insured
500 Los Angeles Department of Water and Power, California, Power System 7/15 at 100.00 AAA 490,735
Revenue Bonds, Series 2005, 5.000%, 7/01/31 - FSA Insured (UB)
715 Merced Irrigation District, California, Electric System Revenue 9/15 at 100.00 N/R 511,525
Bonds, Series 2005, 5.125%, 9/01/31 - SYNCORA GTY Insured
10,450 Orange County Public Financing Authority, California, Waste No Opt. Call A1 10,583,760
Management System Revenue Refunding Bonds,
Series 1997, 5.250%, 12/01/13 - AMBAC Insured
(Alternative Minimum Tax)
1,000 Sacramento Municipal Utility District, California, Electric No Opt. Call AA- 1,016,780
Revenue Bonds, Series 2004T, 5.250%, 5/15/23 - FGIC Insured
500 Sacramento Municipal Utility District, California, Electric Revenue 8/12 at 100.00 AAA 511,085
Refunding Bonds, Series 2002Q, 5.250%, 8/15/22 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
20,240 Total Utilities 18,696,786
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 15.0% (9.6% OF TOTAL INVESTMENTS)
1,000 California Statewide Community Development Authority, Water and 10/13 at 100.00 AAA 1,025,680
Wastewater Revenue Bonds, Pooled Financing Program,
Series 2003A, 5.250%, 10/01/23 - FSA Insured
2,500 El Centro Financing Authority, California, Water Revenue Bonds, 10/16 at 100.00 AAA 2,203,125
Series 2006A, 4.750%, 10/01/31 - FSA Insured
490 Healdsburg Public Financing Authority, California, Wastewater 4/16 at 100.00 AA- 434,914
Revenue Bonds, Series 2006, 5.000%, 4/01/36 - MBIA Insured
4,770 Los Angeles Department of Water and Power, California, Waterworks 7/14 at 100.00 AA 5,074,135
Revenue Bonds, Series 2004C, 5.250%, 7/01/20 - MBIA Insured
2,500 Pajaro Valley Water Management Agency, California, Revenue 3/09 at 101.00 A 2,344,800
Certificates of Participation, Series 1999A,
5.750%, 3/01/29 - AMBAC Insured
5,985 Sacramento County Sanitation District Financing Authority, 12/10 at 101.00 AA 6,380,788
California, Revenue Bonds, Series 2000A, 5.250%, 12/01/12
35
NCP | Nuveen California Performance Plus Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS February 28, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 4,585 Santa Maria, California, Subordinate Water and Wastewater Revenue 8/12 at 101.00 A $ 4,584,772
Certificates of Participation,
Series 1997A, 5.550%, 8/01/27 - AMBAC Insured
1,700 South Gate Utility Authority, California, Subordinate Revenue Bonds, 10/11 at 102.00 AA- 1,709,962
Water and Sewer System Projects,
Series 2001, 5.000%, 10/01/22 - FGIC Insured
945 Woodbridge Irrigation District, California, Certificates of 7/13 at 100.00 BBB+ 741,220
Participation, Water Systems Project,
Series 2003, 5.625%, 7/01/43
------------------------------------------------------------------------------------------------------------------------------------
24,475 Total Water and Sewer 24,499,396
------------------------------------------------------------------------------------------------------------------------------------
$ 277,820 Total Investments (cost $270,743,082) - 155.9% 255,144,223
============------------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (2.2)% (3,595,000)
----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.0% 3,248,965
----------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (55.7)% (6) (91,175,000)
----------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 163,623,188
======================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's Group ("Standard &
Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
The Portfolio of Investments may reflect the ratings on certain bonds
insured by ACA, AGC, AMBAC, FGIC, FSA, MBIA, RAAI and SYNCORA as of
February 28, 2009. Please see the Portfolio Manager's Commentary for an
expanded discussion of the affect on the Fund of changes to the ratings of
certain bonds in the portfolio resulting from changes to the ratings of
the underlying insurers both during the period and after period end.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) This debt has been restructured to accommodate capital maintenance at the
facility. Major highlights of the debt restructuring include the
following: (1) the principal balance outstanding on and after December 1,
2007, shall accrue interest at a rate of 6.500% per annum commencing
December 1, 2007; (2) the interest shall accrue but not be payable on June
1, 2008 or December 1, 2008, but shall instead be deferred and paid by the
end of calendar year 2011; (3) no principal component shall be pre-payable
from the Minimum Sinking Fund Account during calendar years 2008 and 2009
but such pre-payments shall recommence beginning in calendar year 2010
according to a revised schedule. Management believes that the
restructuring is in the best interest of Fund shareholders and that it is
more-likely-than-not that the borrower will fulfill its obligation.
Consequently, the Fund continues to accrue interest on this obligation.
(6) Preferred Shares, at Liquidation Value as a percentage of Total
Investments is 35.7%.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140.
See accompanying notes to financial statements.
36
NCO | Nuveen California Municipal Market Opportunity Fund, Inc.
| Portfolio of INVESTMENTS February 28, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 4.5% (2.9% OF TOTAL INVESTMENTS)
$ 410 California County Tobacco Securitization Agency, Tobacco Settlement 6/15 at 100.00 BBB $ 356,323
Asset-Backed Bonds, Sonoma County Tobacco Securitization
Corporation, Series 2005, 4.250%, 6/01/21
2,000 Golden State Tobacco Securitization Corporation, California, Enhanced 6/17 at 100.00 BBB 1,205,680
Tobacco Settlement Asset-Backed Bonds,
Series 2007A-1, 5.750%, 6/01/47
8,090 Golden State Tobacco Securitization Corporation, California, Enhanced 6/22 at 100.00 BBB 3,171,765
Tobacco Settlement Asset-Backed Bonds,
Series 2007A-2, 0.000%, 6/01/37
------------------------------------------------------------------------------------------------------------------------------------
10,500 Total Consumer Staples 4,733,768
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 3.8% (2.5% OF TOTAL INVESTMENTS)
100 California Educational Facilities Authority, Revenue Bonds, University 10/15 at 100.00 A3 83,943
of Redlands, Series 2005A, 5.000%, 10/01/35
California Educational Facilities Authority, Revenue Bonds, University
of the Pacific, Series 2006:
70 5.000%, 11/01/21 11/15 at 100.00 A2 67,355
95 5.000%, 11/01/25 11/15 at 100.00 A2 84,744
1,000 California Infrastructure Economic Development Bond Bank, Revenue 7/15 at 100.00 Aa3 1,020,630
Bonds, Scripps Research Institute, Series 2005A, 5.000%, 7/01/24
1,680 California State Public Works Board, Lease Revenue Bonds, University 3/18 at 100.00 AA- 1,428,168
of California Regents, Trust 1065, 8.969%, 3/01/33 (IF)
2,000 San Diego County, California, Certificates of Participation, Burnham 9/15 at 102.00 Baa3 1,336,300
Institute, Series 2006, 5.000%, 9/01/34
------------------------------------------------------------------------------------------------------------------------------------
4,945 Total Education and Civic Organizations 4,021,140
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 14.3% (9.3% OF TOTAL INVESTMENTS)
240 California Health Facilities Financing Authority, Revenue Bonds, 4/16 at 100.00 A+ 195,895
Kaiser Permanante System, Series 2006, 5.000%, 4/01/37
2,010 California Health Facilities Financing Authority, Revenue Bonds, 11/16 at 100.00 AA- 1,514,314
Sutter Health, Series 2008, Trust 3146, 12.371%, 11/15/46 (IF)
3,200 California Infrastructure Economic Development Bank, Revenue Bonds, 8/11 at 102.00 A+ 2,897,664
Kaiser Hospital Assistance LLC, Series 2001A, 5.550%, 8/01/31
1,060 California Municipal Financing Authority, Certificates of 2/17 at 100.00 Baa2 687,580
Participation, Community Hospitals of Central California,
Series 2007, 5.250%, 2/01/46
1,120 California Statewide Communities Development Authority, Revenue Bonds, 3/15 at 100.00 A 888,720
Adventist Health System West, Series 2005A, 5.000%, 3/01/35
569 California Statewide Communities Development Authority, Revenue Bonds, 7/18 at 100.00 AAA 370,396
Saint Joseph Health System,
Trust 2554, 18.216%, 7/01/47 - FSA Insured (IF)
1,000 California Statewide Community Development Authority, Insured Health 10/17 at 100.00 A 812,840
Facility Revenue Bonds, Henry Mayo Newhall Memorial Hospital,
Series 2007A, 5.000%, 10/01/37
755 California Statewide Community Development Authority, Revenue Bonds, 3/16 at 100.00 A+ 605,971
Kaiser Permanante System, Series 2006, 5.000%, 3/01/41
135 California Statewide Community Development Authority, Revenue Bonds, 8/16 at 100.00 A+ 117,508
Kaiser Permanente System, Series 2001C, 5.250%, 8/01/31
37
NCO | Nuveen California Municipal Market Opportunity Fund, Inc. (continued)
| Portfolio of INVESTMENTS February 28, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 675 California Statewide Community Development Authority, Revenue Bonds, No Opt. Call A1 $ 715,291
Sherman Oaks Health System,
Series 1998A, 5.000%, 8/01/22 - AMBAC Insured
2,585 California Statewide Community Development Authority, Revenue Bonds, 11/15 at 100.00 AA- 2,204,307
Sutter Health, Series 2005A, 5.000%, 11/15/43
1,150 Loma Linda, California, Hospital Revenue Bonds, Loma Linda 12/18 at 100.00 BBB 1,132,854
University Medical Center, Series 2008A, 8.250%, 12/01/38
2,570 Rancho Mirage Joint Powers Financing Authority, California, Revenue 7/17 at 100.00 A3 2,100,461
Bonds, Eisenhower Medical Center, Series 2007A, 5.000%, 7/01/38
1,000 The Regents of the University of California, Medical Center Pooled 5/15 at 101.00 Aa2 874,240
Revenue Bonds, Series 2007A, 4.500%, 5/15/37 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
18,069 Total Health Care 15,118,041
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.2% (0.1% OF TOTAL INVESTMENTS)
240 California Housing Finance Agency, Home Mortgage Revenue Bonds, 2/16 at 100.00 Aa2 238,003
Series 2006H, 5.750%, 8/01/30 - FGIC Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.6% (0.4% OF TOTAL INVESTMENTS)
750 California Pollution Control Financing Authority, Solid Waste 1/16 at 102.00 BBB 622,800
Disposal Revenue Bonds, Waste Management Inc.,
Series 2002A, 5.000%, 1/01/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.1% (1.4% OF TOTAL INVESTMENTS)
2,900 California Statewide Communities Development Authority, Revenue 12/17 at 100.00 Baa1 2,222,995
Bonds, Inland Regional Center Project,
Series 2007, 5.250%, 12/01/27
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 18.2% (11.7% OF TOTAL INVESTMENTS)
4,125 Alameda Unified School District, Alameda County, California, General No Opt. Call AAA 1,662,210
Obligation Bonds, Series 2004A, 0.000%, 8/01/25 - FSA Insured
1,350 Coachella Valley Unified School District, Riverside County, 8/15 at 100.00 AA- 1,300,118
California, General Obligation Bonds,
Series 2005A, 5.000%, 8/01/30 - FGIC Insured
2,150 Los Rios Community College District, Sacramento, El Dorado and Yolo 8/14 at 102.00 AAA 2,255,909
Counties, California, General Obligation Bonds,
Series 2006, 5.000%, 8/01/24 - FSA Insured (UB)
4,100 Monrovia Unified School District, Los Angeles County, California, No Opt. Call AA- 1,376,821
General Obligation Bonds,
Series 2001B, 0.000%, 8/01/27 - FGIC Insured
2,500 Oakland Unified School District, Alameda County, California, General 8/12 at 100.00 AA- 2,432,100
Obligation Bonds, Series 2002, 5.250%, 8/01/21 - FGIC Insured
1,000 Pomona Unified School District, Los Angeles County, California, 8/11 at 103.00 AA- 1,123,080
General Obligation Refunding
Bonds, Series 1997A, 6.150%, 8/01/15 - MBIA Insured
25 Riverside Community College District, California, General Obligation 8/14 at 100.00 AA- 25,954
Bonds, Series 2004A, 5.250%, 8/01/24 - MBIA Insured
210 Roseville Joint Union High School District, Placer County, 8/15 at 100.00 AA- 210,107
California, General Obligation Bonds,
Series 2006B, 5.000%, 8/01/27 - FGIC Insured
5,000 San Diego Unified School District, California, General Obligation 7/10 at 100.00 AA 5,200,000
Bonds, Election of 1998, Series 2000B,
5.125%, 7/01/21 - MBIA Insured
4,970 San Rafael City High School District, Marin County, California, No Opt. Call AA 1,809,080
General Obligation Bonds, Series 2004B,
0.000%, 8/01/27 - FGIC Insured
4,175 Southwestern Community College District, San Diego County, No Opt. Call AA- 1,737,051
California, General Obligation Bonds,
Series 2004, 0.000%, 8/01/25 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
29,605 Total Tax Obligation/General 19,132,430
------------------------------------------------------------------------------------------------------------------------------------
38
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 29.7% (19.3% OF TOTAL INVESTMENTS)
$ 2,000 California State Public Works Board, Lease Revenue Bonds, 6/14 at 100.00 A2 $ 2,051,080
Department of Mental Health, Coalinga State Hospital,
Series 2004A, 5.500%, 6/01/19
1,420 California, Economic Recovery Revenue Bonds, Series 2004A, 7/14 at 100.00 A+ 1,510,837
5.000%, 7/01/15
260 Capistrano Unified School District, Orange County, California, 9/15 at 100.00 AA- 233,259
Special Tax Bonds, Community Facilities District,
Series 2005, 5.000%, 9/01/24 - FGIC Insured
770 Chino Redevelopment Agency, California, Merged Chino 9/16 at 101.00 A 592,908
Redevelopment Project Area Tax Allocation Bonds,
Series 2006, 5.000%, 9/01/38 - AMBAC Insured
1,035 Hawthorne Community Redevelopment Agency, California, Project 9/16 at 100.00 A- 912,146
Area 2 Tax Allocation Bonds,
Series 2006, 5.250%, 9/01/36 - SYNCORA GTY Insured
Irvine, California, Unified School District, Community
Facilities District Special Tax Bonds, Series 2006A:
125 5.000%, 9/01/26 9/16 at 100.00 N/R 99,295
290 5.125%, 9/01/36 9/16 at 100.00 N/R 211,990
470 Los Angeles Community Redevelopment Agency, California, Lease 9/15 at 100.00 A2 397,183
Revenue Bonds, Manchester Social Services Project,
Series 2005, 5.000%, 9/01/37 - AMBAC Insured
Modesto Schools Infrastructure Financing Agency, Stanislaus
County, California, Special Tax Revenue Bonds, Series 2004:
1,375 5.250%, 9/01/25 - AMBAC Insured 9/14 at 100.00 A 1,185,044
1,500 5.250%, 9/01/26 - AMBAC Insured 9/14 at 100.00 A 1,277,730
10,900 Ontario Redevelopment Financing Authority, San Bernardino County, No Opt. Call AA- 13,796,998
California, Revenue Refunding Bonds, Redevelopment Project 1,
Series 1995, 7.400%, 8/01/25 - MBIA Insured
1,000 Ontario, California, Special Tax Bonds, Community Facilities 3/09 at 100.00 N/R 946,040
District 5, Freeway Interchange Project,
Series 1997, 6.375%, 9/01/17
1,065 Panama-Buena Vista Union School District, California, 9/16 at 100.00 AA- 1,055,713
Certificates of Participation, School Construction Project,
Series 2006, 5.000%, 9/01/22 - MBIA Insured
225 Rialto Redevelopment Agency, California, Tax Allocation Bonds, 9/15 at 100.00 A- 191,889
Merged Project Area, Series 2005A, 5.000%, 9/01/35 -
SYNCORA GTY Insured
280 Roseville, California, Certificates of Participation, Public 8/13 at 100.00 A+ 267,890
Facilities, Series 2003A, 5.000%, 8/01/25 - AMBAC Insured
2,500 Sacramento City Financing Authority, California, Lease Revenue No Opt. Call A 2,735,075
Refunding Bonds, Series 1993A, 5.400%, 11/01/20 - AMBAC Insured
2,255 San Bernardino County, California, Certificates of Participation, 8/09 at 100.00 AA 2,249,611
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 AA+ 1,241,244
Bonds, Convention Center Project, Series 2001F,
5.000%, 9/01/20 - MBIA Insured
485 San Mateo Union High School District, San Mateo County, 12/17 at 100.00 A 407,230
California, Certificates of Participation, Phase 1,
Series 2007A, 5.000%, 12/15/30 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
29,155 Total Tax Obligation/Limited 31,363,162
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 25.8% (16.7% OF TOTAL INVESTMENTS)
1,355 Bay Area Toll Authority, California, Revenue Bonds, San Francisco 4/18 at 100.00 AA 1,316,194
Bay Area Toll Bridge, Series 2008, Trust 3211, 12.855%, 4/01/39 (IF)
4,000 Foothill/Eastern Transportation Corridor Agency, California, Toll 1/14 at 101.00 BBB- 3,448,760
Road Revenue Refunding Bonds, Series 1999, 0.000%, 1/15/29
8,500 Long Beach, California, Harbor Revenue Bonds, Series 2000A, 5/10 at 101.00 AA 8,723,465
5.750%, 5/15/14 (Alternative Minimum Tax)
5,250 Port of Oakland, California, Revenue Bonds, Series 2000K, 5.750%, 5/10 at 100.00 AA- 4,512,375
11/01/29 - FGIC Insured (Alternative Minimum Tax)
39
NCO | Nuveen California Municipal Market Opportunity Fund, Inc. (continued)
| Portfolio of INVESTMENTS February 28, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION (continued)
San Francisco Airports Commission, California, Revenue Bonds, San
Francisco International Airport, Second Series 2000, Issue 25:
$ 2,515 5.500%, 5/01/24 - FSA Insured (Alternative Minimum Tax) 5/10 at 101.00 AAA $ 2,434,369
3,100 5.750%, 5/01/30 - FSA Insured (Alternative Minimum Tax) 5/10 at 101.00 AAA 3,014,688
1,250 San Francisco Airports Commission, California, Revenue Bonds, San 5/10 at 101.00 AA- 1,278,700
Francisco International Airport, Second Series 2000,
Issue 26B, 5.000%, 5/01/21 - FGIC Insured
2,465 San Francisco Airports Commission, California, Special Facilities 7/09 at 101.00 AAA 2,469,634
Lease Revenue Bonds, San Francisco International Airport,
SFO Fuel Company LLC, Series 2000A, 6.125%, 1/01/27 - FSA
Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
28,435 Total Transportation 27,198,185
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 24.7% (16.0% OF TOTAL INVESTMENTS) (4)
710 California County Tobacco Securitization Agency, Tobacco 6/10 at 100.00 N/R (4) 722,411
Settlement Asset-Backed Bonds, Sonoma County Tobacco Funding
Corporation, Series 2002B, 5.125%, 6/01/20 (Pre-refunded 6/01/10)
3,000 California Department of Water Resources, Power Supply Revenue 5/12 at 101.00 Aaa 3,370,290
Bonds, Series 2002A, 5.125%, 5/01/18 (Pre-refunded 5/01/12)
25 California Department of Water Resources, Water System Revenue 12/11 at 100.00 AAA 27,822
Bonds, Central Valley Project, Series 2001W, 5.500%, 12/01/15
(Pre-refunded 12/01/11)
10 California Department of Water Resources, Water System Revenue No Opt. Call Aa2 (4) 12,311
Bonds, Central Valley Project, Series 2002X,
5.500%, 12/01/17 - FGIC Insured (ETM)
2,100 California, General Obligation Bonds, Series 2004, 5.250%, 4/01/34 4/14 at 100.00 AAA 2,430,078
(Pre-refunded 4/01/14)
1,865 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 2,049,299
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.250%, 6/01/33 (Pre-refunded 6/01/13)
5,000 Los Angeles Unified School District, California, General 7/10 at 100.00 AA- (4) 5,296,550
Obligation Bonds, Series 2000D, 5.375%, 7/01/25
(Pre-refunded 7/01/10) - FGIC Insured
2,000 Monterey County, California, Certificates of Participation, Master 8/11 at 100.00 A3 (4) 2,181,540
Plan Financing, Series 2001, 5.000%, 8/01/21
(Pre-refunded 8/01/11) - MBIA Insured
875 Orange County Water District, California, Revenue Certificates of 8/13 at 100.00 AAA 887,128
Participation, Series 2003B, 5.000%, 8/15/34 - MBIA Insured (ETM)
4,000 Pomona, California, GNMA/FHLMC Collateralized Single Family No Opt. Call AAA 5,245,640
Mortgage Revenue Refunding Bonds,
Series 1990B, 7.500%, 8/01/23 (ETM)
1,875 Riverside Community College District, California, General 8/14 at 100.00 AA (4) 2,170,519
Obligation Bonds, Series 2004A, 5.250%, 8/01/24
(Pre-refunded 8/01/14) - MBIA Insured
1,530 University of California, Certificates of Participation, San Diego 1/10 at 101.00 Aaa 1,603,241
and Sacramento Campus Projects,
Series 2002A, 5.250%, 1/01/20 (Pre-refunded 1/01/10)
------------------------------------------------------------------------------------------------------------------------------------
22,990 Total U.S. Guaranteed 25,996,829
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 4.6% (3.0% OF TOTAL INVESTMENTS)
1,500 California Pollution Control Financing Authority, Revenue 9/09 at 101.00 AA- 1,354,305
Refunding Bonds, Southern California Edison Company,
Series 1999A, 5.450%, 9/01/29 - MBIA Insured
2,815 California Statewide Community Development Authority, Certificates 6/09 at 100.00 N/R 2,173,884
of Participation Refunding, Rio Bravo Fresno Project,
Series 1999A, 6.500%, 12/01/18 (5)
1,365 Long Beach Bond Finance Authority, California, Natural Gas No Opt. Call A+ 1,007,534
Purchase Revenue Bonds, Series 2007A, 5.500%, 11/15/37
455 Merced Irrigation District, California, Electric System Revenue 9/15 at 100.00 N/R 325,516
Bonds, Series 2005, 5.125%, 9/01/31 - SYNCORA GTY Insured
------------------------------------------------------------------------------------------------------------------------------------
6,135 Total Utilities 4,861,239
------------------------------------------------------------------------------------------------------------------------------------
40
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 25.8% (16.7% OF TOTAL INVESTMENTS)
$ 3,305 California Department of Water Resources, Water System Revenue Bonds, 12/11 at 100.00 AAA $ 3,584,008
Central Valley Project, Series 2001W, 5.500%, 12/01/15
1,020 California Department of Water Resources, Water System Revenue Bonds, No Opt. Call AAA 1,196,338
Central Valley Project, Series 2002X,
5.500%, 12/01/17 - FGIC Insured
2,500 El Centro Financing Authority, California, Water Revenue Bonds, 10/16 at 100.00 AAA 2,203,125
Series 2006A, 4.750%, 10/01/31 - FSA Insured
750 Fortuna Public Finance Authority, California, Water Revenue Bonds, 10/16 at 100.00 AAA 713,363
Series 2006, 5.000%, 10/01/36 - FSA Insured
315 Healdsburg Public Financing Authority, California, Wastewater Revenue 4/16 at 100.00 AA- 279,588
Bonds, Series 2006, 5.000%, 4/01/36 - MBIA Insured
4,125 Orange County Water District, California, Revenue Certificates of 8/13 at 100.00 AAA 3,925,391
Participation, Series 2003B, 5.000%, 8/15/34 - MBIA Insured
3,500 Placerville Public Financing Authority, California, Wastewater System 9/16 at 100.00 N/R 2,724,260
Refinancing and Improvement Project Revenue Bonds,
Series 2006, 5.000%, 9/01/34 - SYNCORA GTY Insured
500 Sacramento County Sanitation District Financing Authority, 6/16 at 100.00 AA 488,665
California, Revenue Bonds, Series 2006,
5.000%, 12/01/31 - FGIC Insured
2,000 San Francisco City and County Public Utilities Commission, 4/13 at 100.00 AA- 2,107,000
California, Clean Water Revenue Refunding Bonds,
Series 2003A, 5.250%, 10/01/20 - MBIA Insured
10,000 Santa Maria, California, Subordinate Water and Wastewater Revenue 8/12 at 101.00 A 9,999,500
Certificates of Participation, Series 1997A,
5.550%, 8/01/27 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
28,015 Total Water and Sewer 27,221,238
------------------------------------------------------------------------------------------------------------------------------------
$ 181,739 Total Investments (cost $170,369,705) - 154.3% 162,729,830
============------------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (1.5)% (1,610,000)
----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 3.0% 3,261,726
----------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (55.8)% (6) (58,900,000)
----------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 105,481,556
======================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's Group ("Standard &
Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
The Portfolio of Investments may reflect the ratings on certain bonds
insured by ACA, AGC, AMBAC, FGIC, FSA, MBIA, RAAI and SYNCORA as of
February 28, 2009. Please see the Portfolio Manager's Commentary for an
expanded discussion of the affect on the Fund of changes to the ratings of
certain bonds in the portfolio resulting from changes to the ratings of
the underlying insurers both during the period and after period end.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) This debt has been restructured to accommodate capital maintenance at the
facility. Major highlights of the debt restructuring include the
following: (1) the principal balance outstanding on and after December 1,
2007, shall accrue interest at a rate of 6.500% per annum commencing
December 1, 2007; (2) the interest shall accrue but not be payable on June
1, 2008 or December 1, 2008, but shall instead be deferred and paid by the
end of calendar year 2011; (3) no principal component shall be pre-payable
from the Minimum Sinking Fund Account during calendar years 2008 and 2009
but such pre-payments shall recommence beginning in calendar year 2010
according to a revised schedule. Management believes that the
restructuring is in the best interest of Fund shareholders and that it is
more-likely-than-not that the borrower will fulfill its obligation.
Consequently, the Fund continues to accrue interest on this obligation.
(6) Preferred Shares, at Liquidation Value as a percentage of Total
Investments is 36.2%.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140.
See accompanying notes to financial statements.
41
NQC | Nuveen California Investment Quality Municipal Fund, Inc.
| Portfolio of INVESTMENTS February 28, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 4.9% (3.1% OF TOTAL INVESTMENTS)
California County Tobacco Securitization Agency, Tobacco
Settlement Asset-Backed Bonds, Sonoma County Tobacco
Securitization Corporation, Series 2005:
$ 675 4.250%, 6/01/21 6/15 at 100.00 BBB $ 586,629
3,500 5.250%, 6/01/45 6/15 at 100.00 BBB 1,941,415
2,000 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 1,205,680
Enhanced Tobacco Settlement Asset-Backed Bonds,
Series 2007A-1, 5.750%, 6/01/47
6,740 Golden State Tobacco Securitization Corporation, California, 6/22 at 100.00 BBB 2,642,484
Enhanced Tobacco Settlement Asset-Backed Bonds,
Series 2007A-2, 0.000%, 6/01/37
3,500 Tobacco Securitization Authority of Northern California, Tobacco 6/15 at 100.00 BBB 2,051,420
Settlement Asset-Backed Bonds, Series 2005A-1, 5.375%, 6/01/38
------------------------------------------------------------------------------------------------------------------------------------
16,415 Total Consumer Staples 8,427,628
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 16.1% (10.1% OF TOTAL INVESTMENTS)
3,000 California Educational Facilities Authority, Revenue Bonds, 12/16 at 100.00 Baa3 1,903,410
Dominican University, Series 2006, 5.000%, 12/01/36
2,000 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 Aa3 1,980,800
Occidental College, Series 2005A, 5.000%, 10/01/27 - MBIA Insured
170 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 A3 142,703
University of Redlands, Series 2005A, 5.000%, 10/01/35
930 California Educational Facilities Authority, Revenue Bonds, 11/10 at 100.00 A2 931,088
University of the Pacific, Series 2000,
5.750%, 11/01/30 - MBIA Insured
California Educational Facilities Authority, Revenue Bonds,
University of the Pacific, Series 2006:
120 5.000%, 11/01/21 11/15 at 100.00 A2 115,465
160 5.000%, 11/01/25 11/15 at 100.00 A2 142,726
6,000 California State Public Works Board, Lease Revenue Bonds, 4/09 at 101.00 A1 6,006,360
California State University Projects,
Series 1997C, 5.400%, 10/01/22
2,798 California State Public Works Board, Lease Revenue Bonds, 3/18 at 100.00 AA- 2,378,580
University of California Regents, Trust 1065, 8.969%, 3/01/33 (IF)
2,500 Long Beach Bond Financing Authority, California, Lease Revenue 11/11 at 101.00 A 2,017,750
Refunding Bonds, Long Beach Aquarium of the South Pacific,
Series 2001, 5.250%, 11/01/30 - AMBAC Insured
University of California, Revenue Bonds, Multi-Purpose Projects,
Series 2003A:
4,270 5.125%, 5/15/16 - AMBAC Insured (UB) 5/13 at 100.00 AA 4,680,774
3,000 5.125%, 5/15/17 - AMBAC Insured (UB) 5/13 at 100.00 AA 3,288,600
1,060 5.000%, 5/15/24 - AMBAC Insured (UB) 5/13 at 100.00 AA 1,077,755
3,000 5.000%, 5/15/33 - AMBAC Insured (UB) 5/13 at 100.00 AA 2,937,930
------------------------------------------------------------------------------------------------------------------------------------
29,008 Total Education and Civic Organizations 27,603,941
------------------------------------------------------------------------------------------------------------------------------------
42
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 10.0% (6.2% OF TOTAL INVESTMENTS)
$ 3,000 California Health Facilities Financing Authority, Revenue Bonds, 7/14 at 100.00 A $ 2,839,170
Catholic Healthcare West, Series 2004G, 5.250%, 7/01/23
California Health Facilities Financing Authority, Revenue Bonds,
Kaiser Permanante System, Series 2006:
390 5.000%, 4/01/37 4/16 at 100.00 A+ 318,330
2,355 5.250%, 3/01/45 3/16 at 100.00 A+ 1,955,757
2,945 California Health Facilities Financing Authority, Revenue Bonds, 11/16 at 100.00 AA- 2,218,733
Sutter Health, Series 2008, Trust 3146, 12.371%, 11/15/46 (IF)
1,750 California Municipal Financing Authority, Certificates of 2/17 at 100.00 Baa2 1,135,155
Participation, Community Hospitals of Central California,
Series 2007, 5.250%, 2/01/46
948 California Statewide Communities Development Authority, Revenue 7/18 at 100.00 AAA 616,785
Bonds, Saint Joseph Health System, Trust 2554,
18.216%, 7/01/47 - FSA Insured (IF)
1,245 California Statewide Community Development Authority, Revenue 3/16 at 100.00 A+ 999,249
Bonds, Kaiser Permanante System, Series 2006, 5.000%, 3/01/41
1,840 California Statewide Community Development Authority, Revenue 8/16 at 100.00 A+ 1,601,591
Bonds, Kaiser Permanente System, Series 2001C, 5.250%, 8/01/31
4,270 California Statewide Community Development Authority, Revenue 11/15 at 100.00 AA- 3,641,157
Bonds, Sutter Health, Series 2005A, 5.000%, 11/15/43
1,785 Loma Linda, California, Hospital Revenue Bonds, Loma Linda 12/18 at 100.00 BBB 1,758,386
University Medical Center, Series 2008A, 8.250%, 12/01/38
------------------------------------------------------------------------------------------------------------------------------------
20,528 Total Health Care 17,084,313
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 1.4% (0.9% OF TOTAL INVESTMENTS)
390 California Housing Finance Agency, Home Mortgage Revenue Bonds, 2/16 at 100.00 Aa2 386,755
Series 2006H, 5.750%, 8/01/30 - FGIC Insured
(Alternative Minimum Tax)
2,165 California Housing Finance Agency, Home Mortgage Revenue Bonds, 2/16 at 100.00 Aa2 2,088,727
Series 2006K, 5.500%, 2/01/42 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,555 Total Housing/Single Family 2,475,482
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.6% (0.4% OF TOTAL INVESTMENTS)
1,250 California Pollution Control Financing Authority, Solid Waste 1/16 at 102.00 BBB 1,038,000
Disposal Revenue Bonds, Waste Management Inc.,
Series 2002A, 5.000%, 1/01/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 3.2% (2.0% OF TOTAL INVESTMENTS)
4,750 California Statewide Communities Development Authority, Revenue 12/17 at 100.00 Baa1 3,421,520
Bonds, Inland Regional Center Project,
Series 2007, 5.375%, 12/01/37
2,400 California Statewide Community Development Authority, Certificates 4/09 at 101.00 BBB 2,147,544
of Participation, Internext Group, Series 1999, 5.375%, 4/01/17
------------------------------------------------------------------------------------------------------------------------------------
7,150 Total Long Term Care 5,569,064
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 11.7% (7.3% OF TOTAL INVESTMENTS)
2,250 Fontana Unified School District, San Bernardino County, California, 5/09 at 102.00 AA- 2,311,178
General Obligation Refunding Bonds,
Series 1997D, 5.800%, 5/01/17 - FGIC Insured
10,060 Los Angeles, California, General Obligation Bonds, Series 2001A, 9/11 at 100.00 AA 10,505,457
5.000%, 9/01/21
3,250 Puerto Rico, General Obligation and Public Improvement Bonds, No Opt. Call AA- 3,066,343
Series 2001A, 5.500%, 7/01/20 - MBIA Insured
43
NQC | Nuveen California Investment Quality Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS February 28, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 20 Riverside Community College District, California, General Obligation 8/14 at 100.00 AA- $ 21,210
Bonds, Series 2004A, 5.250%, 8/01/21 - MBIA Insured
345 Roseville Joint Union High School District, Placer County, California, 8/15 at 100.00 AA- 345,176
General Obligation Bonds, Series 2006B,
5.000%, 8/01/27 - FGIC Insured
3,500 San Diego Unified School District, San Diego County, California, 7/13 at 101.00 AAA 3,807,300
General Obligation Bonds, Series 2003E,
5.250%, 7/01/24 - FSA Insured
-----------------------------------------------------------------------------------------------------------------------------------
19,425 Total Tax Obligation/General 20,056,664
-----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 44.4% (27.9% OF TOTAL INVESTMENTS)
3,000 California State Public Works Board, Lease Revenue Bonds, Department of 6/14 at 100.00 A2 3,060,060
Mental Health, Coalinga State Hospital,
Series 2004A, 5.500%, 6/01/20
3,000 California State Public Works Board, Lease Revenue Bonds, Department of 12/11 at 102.00 A 2,973,810
Mental Health, Hospital Addition, Series 2001A,
5.000%, 12/01/21 - AMBAC Insured
2,350 California, Economic Recovery Revenue Bonds, Series 2004A, 5.000%, 7/14 at 100.00 A+ 2,500,330
7/01/15
425 Capistrano Unified School District, Orange County, California, Special 9/15 at 100.00 AA- 381,289
Tax Bonds, Community Facilities District,
Series 2005, 5.000%, 9/01/24 - FGIC Insured
1,595 Fontana Public Financing Authority, California, Tax Allocation Revenue 9/11 at 101.00 A+ 1,565,062
Bonds, North Fontana Redevelopment Project, Series 2003A, 5.375%,
9/01/25 - AMBAC Insured
Golden State Tobacco Securitization Corporation, California, Tobacco
Settlement Asset-Backed Revenue Bonds, Series 2005A, Trust 2215-1:
1,175 11.640%, 6/01/38 - FGIC Insured (IF) 6/15 at 100.00 A- 190,444
825 11.640%, 6/01/45 - FGIC Insured (IF) 6/15 at 100.00 A 7,508
10,455 Golden State Tobacco Securitization Corporation, California, Tobacco 6/15 at 100.00 A 7,864,774
Settlement Asset-Backed Revenue Bonds,
Series 2005A, 5.000%, 6/01/45 - AMBAC Insured
1,770 Hawthorne Community Redevelopment Agency, California, Project Area 2 9/16 at 100.00 A- 1,648,702
Tax Allocation Bonds, Series 2006,
5.000%, 9/01/26 - SYNCORA GTY Insured
3,840 Hesperia Community Redevelopment Agency, California, Tax Allocation 9/15 at 100.00 Baa1 3,019,622
Bonds, Series 2005A, 5.000%, 9/01/35 - SYNCORA GTY Insured
Irvine, California, Unified School District, Community Facilities
District Special Tax Bonds, Series 2006A:
205 5.000%, 9/01/26 9/16 at 100.00 N/R 162,844
470 5.125%, 9/01/36 9/16 at 100.00 N/R 343,570
770 Los Angeles Community Redevelopment Agency, California, Lease Revenue 9/15 at 100.00 A2 650,704
Bonds, Manchester Social Services Project,
Series 2005, 5.000%, 9/01/37 - AMBAC Insured
10,000 Los Angeles County Public Works Financing Authority, California, Lease 9/16 at 100.00 AA- 8,943,700
Revenue Bonds, Series 2006B, 5.000%, 9/01/31 - FGIC Insured
4,130 Manteca Unified School District, San Joaquin County, California, 9/11 at 101.00 AA- 4,221,934
Special Tax Bonds, Community Facilities District 89-2,
Series 2001C, 5.000%, 9/01/23 - MBIA Insured
3,890 Ontario Redevelopment Financing Authority, California, Lease Revenue 8/11 at 101.00 A+ 3,984,371
Bonds, Capital Projects, Series 2001,
5.000%, 8/01/21 - AMBAC Insured
3,600 Ontario Redevelopment Financing Authority, San Bernardino County, No Opt. Call AA- 4,556,808
California, Revenue Refunding Bonds, Redevelopment
Project 1, Series 1995, 7.400%, 8/01/25 - MBIA Insured
1,685 Ontario, California, Special Tax Bonds, Community Facilities District 3/09 at 100.00 N/R 1,594,077
5, Freeway Interchange Project, Series 1997, 6.375%, 9/01/17
1,500 Orange County, California, Special Tax Bonds, Community Facilities 8/12 at 101.00 N/R 1,202,475
District 03-1 of Ladera Ranch, Series 2004A, 5.625%, 8/15/34
1,000 Paramount Redevelopment Agency, California, Tax Allocation Bonds, 8/13 at 100.00 AA- 963,520
Redevelopment Project Area 1, Series 2003, 5.000%, 8/01/23 -
MBIA Insured
44
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 370 Rialto Redevelopment Agency, California, Tax Allocation Bonds, 9/15 at 100.00 A- $ 315,551
Merged Project Area, Series 2005A,
5.000%, 9/01/35 - SYNCORA GTY Insured
2,000 Rohnert Park Community Development Commission, California, 8/17 at 100.00 AA- 1,690,400
Redevelopment Project Tax Allocation Bonds,
Series 2007R, 5.000%, 8/01/37 - FGIC Insured
460 Roseville, California, Certificates of Participation, Public 8/13 at 100.00 A+ 440,105
Facilities, Series 2003A, 5.000%, 8/01/25 - AMBAC Insured
4,000 Sacramento City Financing Authority, California, Lease Revenue No Opt. Call A 4,376,120
Refunding Bonds, Series 1993A, 5.400%, 11/01/20 - AMBAC Insured
2,000 San Jose Financing Authority, California, Lease Revenue Refunding 6/12 at 100.00 AA+ 2,119,540
Bonds, Civic Center Project, Series 2002B,
5.250%, 6/01/19 - AMBAC Insured
3,535 San Jose Financing Authority, California, Lease Revenue Refunding 9/11 at 100.00 AA+ 3,656,498
Bonds, Convention Center Project,
Series 2001F, 5.000%, 9/01/20 - MBIA Insured
6,000 San Ramon Public Financing Authority, California, Tax Allocation 2/16 at 100.00 A 5,058,120
Revenue Bonds, Series 2006A, 5.000%, 2/01/38 - AMBAC Insured
2,840 Santa Clara Redevelopment Agency, California, Tax Allocation Bonds, 6/13 at 100.00 AA- 2,737,646
Bayshore North Project, Series 2003, 5.000%, 6/01/23 - MBIA Insured
5,250 Santa Cruz County Redevelopment Agency, California, Subordinate Lien 9/10 at 102.00 A 5,010,128
Tax Allocation Bonds, Live Oak and Soquel Community Improvement
Projects, Series 2000, 5.250%, 9/01/25 - AMBAC Insured
1,265 Washington Unified School District, Yolo County, California, 8/17 at 100.00 A 1,032,392
Certificates of Participation,
Series 2007, 5.125%, 8/01/37 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
83,405 Total Tax Obligation/Limited 76,272,104
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 30.9% (19.4% OF TOTAL INVESTMENTS)
13,000 Alameda Corridor Transportation Authority, California, Senior Lien 10/09 at 101.00 AA- 12,641,070
Revenue Bonds, Series 1999A, 5.000%, 10/01/29 - MBIA Insured
2,080 Bay Area Toll Authority, California, Revenue Bonds, San Francisco 4/16 at 100.00 AA 2,049,840
Bay Area Toll Bridge, Series 2006, 5.000%, 4/01/31 (UB)
1,325 Bay Area Toll Authority, California, Revenue Bonds, San Francisco 4/18 at 100.00 AA 1,287,053
Bay Area Toll Bridge, Series 2008,
Trust 3211, 12.855%, 4/01/39 (IF)
6,500 Foothill/Eastern Transportation Corridor Agency, California, Toll 1/14 at 101.00 BBB- 5,604,235
Road Revenue Refunding Bonds, Series 1999, 0.000%, 1/15/29
9,980 Long Beach, California, Harbor Revenue Bonds, Series 2000A, 5.500%, 5/10 at 101.00 AA 9,251,560
5/15/25 (Alternative Minimum Tax)
9,000 Port of Oakland, California, Revenue Bonds, Series 2000K, 5.750%, 5/10 at 100.00 AA- 7,735,500
11/01/29 - FGIC Insured (Alternative Minimum Tax)
15,000 San Francisco Airports Commission, California, Revenue Bonds, San 5/10 at 101.00 AAA 14,587,196
Francisco International Airport, Second Series 2000,
Issue 24A, 5.750%, 5/01/30 - FSA Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
56,885 Total Transportation 53,156,454
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 24.7% (15.5% OF TOTAL INVESTMENTS) (4)
6,000 California Department of Water Resources, Power Supply Revenue 5/12 at 101.00 Aaa 6,740,580
Bonds, Series 2002A, 5.125%, 5/01/18 (Pre-refunded 5/01/12)
30 California Department of Water Resources, Water System Revenue 12/11 at 100.00 AAA 33,387
Bonds, Central Valley Project, Series 2001W, 5.500%, 12/01/16
(Pre-refunded 12/01/11)
45
NQC | Nuveen California Investment Quality Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS February 28, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 2,070 California Educational Facilities Authority, Revenue Bonds, 11/10 at 100.00 A2 (4) $ 2,231,067
University of the Pacific, Series 2000, 5.750%, 11/01/30
(Pre-refunded 11/01/10) - MBIA Insured
2,110 California Health Facilities Financing Authority, Revenue Bonds, 4/09 at 101.00 AAA 2,137,620
Kaiser Permanente System, Series 1998B, 5.250%, 10/01/12 (ETM)
3,145 California, General Obligation Bonds, Series 2004, 5.250%, 4/01/34 4/14 at 100.00 AAA 3,639,331
(Pre-refunded 4/01/14)
5,300 California, Various Purpose General Obligation Bonds, Series 2000, 3/10 at 101.00 AAA 5,607,824
5.750%, 3/01/27 (Pre-refunded 3/01/10) - MBIA Insured
2,000 Daly City Housing Development Finance Agency, California, Mobile Home 12/13 at 102.00 N/R (4) 2,389,980
Park Revenue Bonds, Franciscan Mobile Home Park Project,
Series 2002A, 5.850%, 12/15/32 (Pre-refunded 12/15/13)
1,335 Los Angeles Community Redevelopment Agency, California, Tax Allocation 7/09 at 100.00 BBB (4) 1,342,636
Refunding Bonds, Central Business District Redevelopment Project,
Series 1987G, 6.750%, 7/01/10 (ETM)
Los Angeles County Metropolitan Transportation Authority, California,
Proposition C Second Senior Lien Sales Tax Revenue Bonds,
Series 2000A:
8,005 5.250%, 7/01/25 (Pre-refunded 7/01/10) - FGIC Insured 7/10 at 101.00 AA (4) 8,545,498
1,500 5.250%, 7/01/30 (Pre-refunded 7/01/10) - FGIC Insured 7/10 at 101.00 AA (4) 1,601,280
2,285 Moreno Valley Unified School District, Riverside County, California, 8/14 at 100.00 AAA 2,669,360
General Obligation Bonds, Series 2004A, 5.250%, 8/01/24
(Pre-refunded 8/01/14) - FSA Insured
4,000 Puerto Rico Highway and Transportation Authority, Highway Revenue 7/12 at 100.00 AAA 4,448,920
Bonds, Series 2002D, 5.375%, 7/01/36 (Pre-refunded 7/01/12)
1,000 Tobacco Securitization Authority of Southern California, Tobacco 6/12 at 100.00 AAA 1,125,960
Settlement Asset-Backed Bonds, San Diego County Tobacco Asset
Securitization Corporation, Senior Series 2001A, 5.500%, 6/01/36
(Pre-refunded 6/01/12)
------------------------------------------------------------------------------------------------------------------------------------
38,780 Total U.S. Guaranteed 42,513,443
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 3.3% (2.1% OF TOTAL INVESTMENTS)
2,250 Long Beach Bond Finance Authority, California, Natural Gas Purchase No Opt. Call A+ 1,660,770
Revenue Bonds, Series 2007A, 5.500%, 11/15/37
740 Merced Irrigation District, California, Electric System Revenue Bonds, 9/15 at 100.00 N/R 529,411
Series 2005, 5.125%, 9/01/31 - SYNCORA GTY Insured
3,210 Turlock Irrigation District, California, Electric Revenue Bonds, 1/13 at 100.00 AA- 3,458,294
Series 2003A, 5.000%, 1/01/16 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
6,200 Total Utilities 5,648,475
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 8.1% (5.1% OF TOTAL INVESTMENTS)
3,300 California Department of Water Resources, Water System Revenue Bonds, 12/11 at 100.00 AAA 3,578,586
Central Valley Project, Series 2001W, 5.500%, 12/01/16
520 Healdsburg Public Financing Authority, California, Wastewater Revenue 4/16 at 100.00 AA- 461,542
Bonds, Series 2006, 5.000%, 4/01/36 - MBIA Insured
1,500 Los Angeles Department of Water and Power, California, Waterworks 7/14 at 100.00 AA 1,615,875
Revenue Bonds, Series 2004C, 5.250%, 7/01/19 - MBIA Insured
3,015 Oxnard Financing Authority, California, Wastewater Revenue Bonds, 6/13 at 100.00 AA- 3,253,517
Series 2003, 5.000%, 6/01/17 - FGIC Insured
46
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 1,310 San Elijo Joint Powers Authority, San Diego County, California, 3/12 at 101.00 AAA $ 1,412,691
Revenue Refunding Bonds, San Elijo Wastewater Facilities,
Series 2003, 5.000%, 3/01/17 - FSA Insured
3,430 Westlands Water District, California, Revenue Certificates of 9/12 at 101.00 AA- 3,569,018
Participation, Series 2002, 5.250%, 9/01/22 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
13,075 Total Water and Sewer 13,891,229
------------------------------------------------------------------------------------------------------------------------------------
$ 294,676 Total Investments (cost $289,071,514) - 159.3% 273,736,797
============------------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (5.5)% (9,535,000)
----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.4% 2,558,977
----------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (55.2)% (5) (94,925,000)
----------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 171,835,774
======================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's Group ("Standard &
Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
The Portfolio of Investments may reflect the ratings on certain bonds
insured by ACA, AGC, AMBAC, FGIC, FSA, MBIA, RAAI and SYNCORA as of
February 28, 2009. Please see the Portfolio Manager's Commentary for an
expanded discussion of the affect on the Fund of changes to the ratings of
certain bonds in the portfolio resulting from changes to the ratings of
the underlying insurers both during the period and after period end.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) Preferred Shares, at Liquidation Value as a percentage of Total
Investments is 34.7%.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140.
See accompanying notes to financial statements.
47
NVC | Nuveen California Select Quality Municipal Fund, Inc.
| Portfolio of INVESTMENTS February 28, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 5.7% (3.6% OF TOTAL INVESTMENTS)
$ 1,160 California County Tobacco Securitization Agency, Tobacco 6/15 at 100.00 BBB $ 1,008,133
Settlement Asset-Backed Bonds, Sonoma County Tobacco
Securitization Corporation, Series 2005, 4.250%, 6/01/21
4,625 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 Baa3 3,288,421
Settlement Asset-Backed Bonds, Stanislaus County Tobacco
Funding Corporation, Series 2002A, 5.500%, 6/01/33
6,000 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 3,617,040
Enhanced Tobacco Settlement Asset-Backed Bonds,
Series 2007A-1, 5.750%, 6/01/47
22,915 Golden State Tobacco Securitization Corporation, California, 6/22 at 100.00 BBB 8,984,055
Enhanced Tobacco Settlement Asset-Backed Bonds,
Series 2007A-2, 0.000%, 6/01/37
------------------------------------------------------------------------------------------------------------------------------------
34,700 Total Consumer Staples 16,897,649
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 4.9% (3.1% OF TOTAL INVESTMENTS)
290 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 A3 243,435
University of Redlands, Series 2005A, 5.000%, 10/01/35
California Educational Facilities Authority, Revenue Bonds,
University of the Pacific, Series 2006:
200 5.000%, 11/01/21 11/15 at 100.00 A2 192,442
270 5.000%, 11/01/25 11/15 at 100.00 A2 240,851
1,595 California Infrastructure Economic Development Bank, Revenue 10/12 at 100.00 Aa3 1,598,286
Bonds, Claremont University Consortium,
Series 2003, 5.125%, 10/01/24
1,740 California Infrastructure Economic Development Bond Bank, Revenue 7/15 at 100.00 Aa3 1,775,896
Bonds, Scripps Research Institute,
Series 2005A, 5.000%, 7/01/24
4,787 California State Public Works Board, Lease Revenue Bonds, 3/18 at 100.00 AA- 4,069,429
University of California Regents, Trust 1065, 8.969%, 3/01/33 (IF)
1,385 California State University, Systemwide Revenue Bonds, Series 11/15 at 100.00 AA- 1,393,490
2005C, 5.000%, 11/01/27 - MBIA Insured
5,000 University of California, Revenue Bonds, Multi-Purpose Projects, 5/13 at 100.00 AA 4,896,550
Series 2003A, 5.000%, 5/15/33 - AMBAC Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
15,267 Total Education and Civic Organizations 14,410,379
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 17.3% (11.0% OF TOTAL INVESTMENTS)
1,750 ABAG Finance Authority for Non-Profit Corporations, California, 4/12 at 100.00 A 1,764,735
Cal-Mortgage Insured Revenue Bonds, Sansum-Santa Barbara
Medical Foundation Clinic, Series 2002A, 5.500%, 4/01/21
545 California Health Facilities Financing Authority, Insured Health 7/09 at 100.00 AA 522,377
Facility Revenue Refunding Bonds, Catholic Healthcare West,
Series 1994A, 4.750%, 7/01/19 - MBIA Insured
675 California Health Facilities Financing Authority, Revenue Bonds, 4/16 at 100.00 A+ 550,955
Kaiser Permanante System, Series 2006, 5.000%, 4/01/37
5,745 California Health Facilities Financing Authority, Revenue Bonds, 11/16 at 100.00 AA- 4,328,225
Sutter Health, Series 2008, Trust 3146, 12.371%, 11/15/46 (IF)
6,195 California Health Facilities Financing Authority, Revenue Bonds, 11/16 at 100.00 AA- 5,357,589
Sutter Health, Tender Option Bond Trust 3175, 13.766%,
11/15/46 (IF)
48
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 4,200 California Statewide Communities Development Authority, Revenue 3/15 at 100.00 A $ 3,332,700
Bonds, Adventist Health System West,
Series 2005A, 5.000%, 3/01/35
1,621 California Statewide Communities Development Authority, Revenue 7/18 at 100.00 AAA 1,055,206
Bonds, Saint Joseph Health System, Trust 2554, 18.216%,
7/01/47 - FSA Insured (IF)
10,000 California Statewide Community Development Authority, Revenue 7/15 at 100.00 BBB 5,959,400
Bonds, Daughters of Charity Health System,
Series 2005A, 5.000%, 7/01/39
9,435 California Statewide Community Development Authority, Revenue 3/16 at 100.00 A+ 7,572,625
Bonds, Kaiser Permanante System, Series 2006, 5.000%, 3/01/41
3,140 California Statewide Community Development Authority, Revenue 8/16 at 100.00 A+ 2,733,150
Bonds, Kaiser Permanente System, Series 2001C, 5.250%, 8/01/31
1,355 California Statewide Community Development Authority, Revenue No Opt. Call A1 1,435,880
Bonds, Sherman Oaks Health System,
Series 1998A, 5.000%, 8/01/22 - AMBAC Insured
3,100 Loma Linda, California, Hospital Revenue Bonds, Loma Linda 12/18 at 100.00 BBB 3,053,779
University Medical Center, Series 2008A, 8.250%, 12/01/38
6,000 Madera County, California, Certificates of Participation, Valley 3/09 at 100.00 AA- 5,303,280
Children's Hospital Project,
Series 1995, 5.750%, 3/15/28 - MBIA Insured
9,655 Rancho Mirage Joint Powers Financing Authority, California, 7/17 at 100.00 A3 7,891,032
Revenue Bonds, Eisenhower Medical Center,
Series 2007A, 5.000%, 7/01/38
------------------------------------------------------------------------------------------------------------------------------------
63,416 Total Health Care 50,860,933
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.5% (0.9% OF TOTAL INVESTMENTS)
1,000 Independent Cities Lease Finance Authority, California, Revenue 11/14 at 100.00 N/R 691,610
Bonds, Morgan Hill, Hacienda Valley Mobile Home Park,
Series 2004A, 5.950%, 11/15/39
4,750 Montclair Redevelopment Agency, California, Revenue Bonds, 12/10 at 102.00 N/R 3,649,330
Monterey Manor Mobile Home Estates Project,
Series 2000, 6.400%, 12/15/30
------------------------------------------------------------------------------------------------------------------------------------
5,750 Total Housing/Multifamily 4,340,940
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.2% (0.1% OF TOTAL INVESTMENTS)
675 California Housing Finance Agency, Home Mortgage Revenue Bonds, 2/16 at 100.00 Aa2 669,384
Series 2006H, 5.750%, 8/01/30 - FGIC Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 2.1% (1.3% OF TOTAL INVESTMENTS)
5,000 California Pollution Control Financing Authority, Solid Waste No Opt. Call BBB 4,387,250
Disposal Revenue Bonds, Republic Services Inc.,
Series 2002C, 5.250%, 6/01/23 (Mandatory put 12/01/17)
(Alternative Minimum Tax)
2,000 California Pollution Control Financing Authority, Solid Waste 1/16 at 102.00 BBB 1,660,800
Disposal Revenue Bonds, Waste Management Inc.,
Series 2002A, 5.000%, 1/01/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
7,000 Total Industrials 6,048,050
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.1% (0.7% OF TOTAL INVESTMENTS)
California Statewide Communities Development Authority, Revenue
Bonds, Inland Regional Center Project, Series 2007:
460 5.250%, 12/01/27 12/17 at 100.00 Baa1 352,613
4,000 5.375%, 12/01/37 12/17 at 100.00 Baa1 2,881,280
------------------------------------------------------------------------------------------------------------------------------------
4,460 Total Long-Term Care 3,233,893
------------------------------------------------------------------------------------------------------------------------------------
49
NVC | Nuveen California Select Quality Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS February 28, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 15.8% (10.0% OF TOTAL INVESTMENTS)
$ 5,000 California, General Obligation Bonds, Series 2003, 5.250%, 2/01/22 8/13 at 100.00 A1 $ 5,103,800
250 California, Various Purpose General Obligation Bonds, Series 5/10 at 101.00 AAA 253,238
2000, 5.625%, 5/01/22 - FGIC Insured
3,850 Coachella Valley Unified School District, Riverside County, 8/15 at 100.00 AA- 3,707,743
California, General Obligation Bonds, Series 2005A,
5.000%, 8/01/30 - FGIC Insured
Fontana Unified School District, San Bernardino County, California,
General Obligation Bonds, Series 2004:
1,470 5.250%, 5/01/19 - MBIA Insured 5/14 at 100.00 AA- 1,614,148
1,040 5.250%, 5/01/20 - MBIA Insured 5/14 at 100.00 AA- 1,121,723
4,000 Long Beach Community College District, California, General 5/15 at 100.00 AA- 3,897,720
Obligation Bonds, Series 2005B, 5.000%, 5/01/30 - FGIC Insured
10,060 Los Angeles, California, General Obligation Bonds, Series 2001A, 9/11 at 100.00 AA 10,580,504
5.000%, 9/01/20
Los Rios Community College District, Sacramento, El Dorado
and Yolo Counties, California, General Obligation Bonds,
Series 2006:
2,710 5.000%, 8/01/25 - FSA Insured (UB) 8/14 at 102.00 AAA 2,818,969
3,875 5.000%, 8/01/26 - FSA Insured (UB) 8/14 at 102.00 AAA 3,993,614
6,000 North Orange County Community College District, California, No Opt. Call AA 2,181,660
General Obligation Bonds, Series 2003B, 0.000%,
8/01/27 - FGIC Insured
5,000 Puerto Rico, General Obligation and Public Improvement Bonds, No Opt. Call AA- 4,717,450
Series 2001A, 5.500%, 7/01/20 - MBIA Insured
585 Roseville Joint Union High School District, Placer County, 8/15 at 100.00 AA- 585,298
California, General Obligation Bonds, Series 2006B, 5.000%,
8/01/27 - FGIC Insured
3,760 West Contra Costa Unified School District, Contra Costa County, 8/11 at 101.00 AAA 3,885,321
California, General Obligation Bonds, Series 2003B, 5.000%,
8/01/22 - FSA Insured
2,000 West Contra Costa Unified School District, Contra Costa County, 8/11 at 101.00 AA- 2,040,280
California, General Obligation Bonds, Series 2003C, 5.000%,
8/01/22 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
49,600 Total Tax Obligation/General 46,501,468
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 26.2% (16.6% OF TOTAL INVESTMENTS)
2,870 Bell Community Redevelopment Agency, California, Tax Allocation 10/13 at 100.00 BBB+ 2,565,751
Bonds, Bell Project Area, Series 2003, 5.500%,
10/01/23 - RAAI Insured
California State Public Works Board, Lease Revenue Bonds,
Department of Mental Health, Coalinga State Hospital,
Series 2004A:
4,000 5.500%, 6/01/21 6/14 at 100.00 A2 4,051,880
2,000 5.500%, 6/01/23 6/14 at 100.00 A2 1,988,680
730 Capistrano Unified School District, Orange County, California, 9/15 at 100.00 AA- 654,920
Special Tax Bonds, Community Facilities District,
Series 2005, 5.000%, 9/01/24 - FGIC Insured
1,000 Coachella Valley Unified School District, Riverside County, 9/16 at 100.00 Baa1 798,900
California, Certificates of Participation,
Series 2007, 5.000%, 9/01/31 - AMBAC Insured
3,000 Coronado Community Development Agency, California, Tax 9/15 at 100.00 A 2,547,090
Allocation Bonds, Community Development Project,
Series 2005, 5.000%, 9/01/30 - AMBAC Insured
1,030 Folsom Cordova Unified School District, Sacramento County, 10/14 at 100.00 AAA 1,044,492
California, General Obligation Bonds, School Facilities
Improvement District 2, Series 2004B, 5.000%,
10/01/25 - FSA Insured
Golden State Tobacco Securitization Corporation, California,
Tobacco Settlement Asset-Backed
Revenue Bonds, Series 2005A, Trust 2215-1:
1,940 11.640%, 6/01/38 - FGIC Insured (IF) 6/15 at 100.00 A- 314,435
1,355 11.640%, 6/01/45 - FGIC Insured (IF) 6/15 at 100.00 A 12,331
1,785 Hawthorne Community Redevelopment Agency, California, Project 9/16 at 100.00 A- 1,573,121
Area 2 Tax Allocation Bonds,
Series 2006, 5.250%, 9/01/36 - SYNCORA GTY Insured
50
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,500 Hesperia Unified School District, San Bernardino County, 2/17 at 100.00 A $ 1,161,240
California, Certificates of Participation, Capital Improvement,
Series 2007, 5.000%, 2/01/41 - AMBAC Insured
435 Indian Wells Redevelopment Agency, California, Tax Allocation 9/13 at 100.00 A 436,618
Bonds, Consolidated Whitewater Project Area,
Series 2003A, 5.000%, 9/01/20 - AMBAC Insured
Irvine, California, Unified School District, Community
Facilities District Special Tax Bonds, Series 2006A:
350 5.000%, 9/01/26 9/16 at 100.00 N/R 278,026
805 5.125%, 9/01/36 9/16 at 100.00 N/R 588,455
3,000 La Quinta Redevelopment Agency, California, Tax Allocation 9/11 at 102.00 A+ 2,956,140
Bonds, Redevelopment Project Area 1,
Series 2001, 5.000%, 9/01/21 - AMBAC Insured
3,510 Long Beach Bond Financing Authority, California, Lease Revenue 4/09 at 101.00 AA- 3,283,816
and Refunding Bonds, Civic Center Project,
Series 1997A, 5.000%, 10/01/27 - MBIA Insured
4,315 Los Angeles Community Redevelopment Agency, California, Lease 9/15 at 100.00 A2 3,646,477
Revenue Bonds, Manchester Social Services Project,
Series 2005, 5.000%, 9/01/37 - AMBAC Insured
5,770 Los Angeles County Metropolitan Transportation Authority, 7/09 at 100.00 A1 5,810,505
California, Proposition C Second Senior Lien Sales Tax Revenue
Refunding Bonds, Series 1998A, 5.000%, 7/01/23 - AMBAC Insured
8,175 Los Angeles, California, Municipal Improvement Corporation, 1/17 at 100.00 AA- 7,497,701
Lease Revenue Bonds, Police Headquarters,
Series 2006A, 4.750%, 1/01/31 - FGIC Insured
2,580 Oakland Redevelopment Agency, California, Subordinate Lien Tax 3/13 at 100.00 AA- 2,532,683
Allocation Bonds, Central District Redevelopment Project,
Series 2003, 5.500%, 9/01/18 - FGIC Insured
3,605 Oakland State Building Authority, California, Lease Revenue 4/09 at 100.50 A 3,529,908
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 A+ 2,411,602
Revenue Bonds, Capital Projects,
Series 2001, 5.250%, 8/01/18 - AMBAC Insured
1,000 Orange County, California, Special Tax Bonds, Community 8/12 at 101.00 N/R 861,740
Facilities District 03-1 of Ladera Ranch,
Series 2004A, 5.500%, 8/15/24
1,120 Panama-Buena Vista Union School District, California, 9/16 at 100.00 AA- 1,098,821
Certificates of Participation, School Construction Project,
Series 2006, 5.000%, 9/01/23 - MBIA Insured
8,750 Pittsburg Redevelopment Agency, California, Tax Allocation No Opt. Call A 3,587,063
Bonds, Los Medanos Community Development Project,
Series 1999, 0.000%, 8/01/23 - AMBAC Insured
635 Rialto Redevelopment Agency, California, Tax Allocation Bonds, 9/15 at 100.00 A- 541,553
Merged Project Area, Series 2005A,
5.000%, 9/01/35 - SYNCORA GTY Insured
100 Riverside Public Financing Authority, California, Revenue 8/09 at 100.00 N/R 100,183
Bonds, Multiple Project Loans,
Series 1991A, 8.000%, 2/01/18
820 Roseville, California, Certificates of Participation, Public 8/13 at 100.00 A+ 784,535
Facilities, Series 2003A, 5.000%, 8/01/25 - AMBAC Insured
2,200 San Jose Financing Authority, California, Lease Revenue 9/11 at 100.00 AA+ 2,275,614
Refunding Bonds, Convention Center Project,
Series 2001F, 5.000%, 9/01/20 - MBIA Insured
1,365 San Mateo Union High School District, San Mateo County, 12/17 at 100.00 A 1,146,122
California, Certificates of Participation, Phase 1,
Series 2007A, 5.000%, 12/15/30 - AMBAC Insured
4,625 Santa Clara Redevelopment Agency, California, Tax Allocation 6/13 at 100.00 AA- 4,743,909
Bonds, Bayshore North Project,
Series 2003, 5.000%, 6/01/17 - MBIA Insured
6,870 Vernon Redevelopment Agency, California, Tax Allocation Bonds, 9/15 at 100.00 AA- 5,553,296
Industrial Redevelopment Project,
Series 2005, 5.000%, 9/01/35 - MBIA Insured
2,175 Washington Unified School District, Yolo County, California, 8/17 at 100.00 A 1,775,061
Certificates of Participation,
Series 2007, 5.125%, 8/01/37 - AMBAC Insured
5,000 West Hollywood, California, Refunding Certificates of 8/09 at 101.00 AA- 4,887,100
Participation, Series 1998, 5.000%, 2/01/25 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
90,695 Total Tax Obligation/Limited 77,039,768
------------------------------------------------------------------------------------------------------------------------------------
51
NVC | Nuveen California Select Quality Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS February 28, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 18.5% (11.8% OF TOTAL INVESTMENTS)
$ 2,210 Bay Area Toll Authority, California, Revenue Bonds, San 4/16 at 100.00 AA $ 2,177,955
Francisco Bay Area Toll Bridge,
Series 2006, 5.000%, 4/01/31 (UB)
2,450 Bay Area Toll Authority, California, Revenue Bonds, San 4/18 at 100.00 AA 2,379,834
Francisco Bay Area Toll Bridge,
Series 2008, Trust 3211, 12.855%, 4/01/39 (IF)
8,300 Foothill/Eastern Transportation Corridor Agency, California, 1/10 at 100.00 AA- 5,819,379
Toll Road Revenue Bonds,
Series 1995A, 5.000%, 1/01/35 - MBIA Insured
10,500 Foothill/Eastern Transportation Corridor Agency, California, 1/14 at 101.00 BBB- 9,052,995
Toll Road Revenue Refunding Bonds, Series 1999, 0.000%, 1/15/29
8,000 Port of Oakland, California, Revenue Bonds, Series 2000K, 5/10 at 100.00 AA- 6,876,000
5.750%, 11/01/29 - FGIC Insured (Alternative Minimum Tax)
20,000 San Francisco Airports Commission, California, Revenue Bonds, 5/10 at 101.00 AAA 19,449,597
San Francisco International Airport, Second
Series 2000, Issue 25, 5.750%, 5/01/30 - FSA Insured
(Alternative Minimum Tax)
5,000 San Francisco Airports Commission, California, Revenue Refunding 5/11 at 100.00 AA- 5,168,000
Bonds, San Francisco International Airport, Second Series 2001,
Issue 27B, 5.250%, 5/01/18 - FGIC Insured
3,665 San Francisco Airports Commission, California, Revenue Refunding 5/12 at 100.00 AA- 3,594,192
Bonds, San Francisco International Airport, Second Series 2002,
Issue 28A, 5.250%, 5/01/18 - MBIA Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
60,125 Total Transportation 54,517,952
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 38.6% (24.5% OF TOTAL INVESTMENTS) (4)
9,750 California Department of Water Resources, Power Supply Revenue 5/12 at 101.00 Aaa 10,953,443
Bonds, Series 2002A, 5.125%, 5/01/18 (Pre-refunded 5/01/12)
5,760 California Health Facilities Financing Authority, Revenue Bonds, 12/09 at 101.00 N/R (4) 6,060,614
Cedars-Sinai Medical Center, Series 1999A, 6.125%, 12/01/30
(Pre-refunded 12/01/09)
3,000 California Pollution Control Financing Authority, Solid Waste 5/09 at 100.00 AAA 3,663,870
Disposal Revenue Bonds, North County Recycling Center,
Series 1991A, 6.750%, 7/01/17 (ETM)
California Statewide Community Development Authority, Certificates
of Participation, Catholic Healthcare West, Series 1999:
4,495 6.500%, 7/01/20 (Pre-refunded 7/01/10) 7/10 at 101.00 N/R (4) 4,854,645
1,845 6.500%, 7/01/20 (Pre-refunded 7/01/10) 7/10 at 101.00 N/R (4) 1,993,541
California, Various Purpose General Obligation Bonds, Series 2000:
4,450 5.625%, 5/01/22 (Pre-refunded 5/01/10) - FGIC Insured 5/10 at 101.00 AAA 4,741,876
10,000 5.750%, 3/01/27 (Pre-refunded 3/01/10) - MBIA Insured 3/10 at 101.00 AAA 10,580,800
495 Contra Costa County, California, GNMA Mortgage-Backed Securities 11/09 at 100.00 AAA 509,078
Program Home Mortgage Revenue Bonds,
Series 1989, 7.700%, 11/01/09 (Alternative Minimum Tax) (ETM)
5,515 Fresno Unified School District, Fresno County, California, 8/09 at 102.00 A+ (4) 5,692,914
General Obligation Bonds, Series 2001E, 5.000%, 8/01/25 -
FGIC Insured (ETM)
3,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 3,534,510
Tobacco Settlement Asset-Backed Bonds,
Series 2003A-1, 6.750%, 6/01/39 (Pre-refunded 6/01/13)
3,000 Los Angeles County Metropolitan Transportation Authority, 7/10 at 101.00 AA (4) 3,202,560
California, Proposition C Second Senior Lien Sales Tax Revenue
Bonds, Series 2000A, 5.250%, 7/01/25 (Pre-refunded 7/01/10) -
FGIC Insured
6,030 Los Angeles Unified School District, California, General 7/10 at 100.00 AA- (4) 6,387,639
Obligation Bonds, Series 2000D, 5.375%, 7/01/25
(Pre-refunded 7/01/10) - FGIC Insured
Monterey County, California, Certificates of Participation,
Master Plan Financing, Series 2001:
2,075 5.000%, 8/01/19 (Pre-refunded 8/01/11) - MBIA Insured 8/11 at 100.00 A3 (4) 2,263,348
3,000 5.000%, 8/01/26 (Pre-refunded 8/01/11) - MBIA Insured 8/11 at 100.00 A3 (4) 3,272,310
10,000 Puerto Rico Highway and Transportation Authority, Highway 7/10 at 101.00 BBB (4) 10,734,400
Revenue Bonds, Series 2000B, 6.000%, 7/01/31
(Pre-refunded 7/01/10)
52
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 4,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA $ 4,259,920
Obligation Bonds, Series 2000A, 5.500%, 10/01/32
2,000 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call AAA 2,326,500
Appropriation Bonds, Series 2002E, 6.000%,
8/01/26 - AGC Insured (ETM)
17,670 San Francisco City and County Public Utilities Commission, 11/11 at 100.00 AAA 19,404,487
California, Water Revenue Bonds, Series 2001A, 5.000%, 11/01/24
(Pre-refunded 11/01/11) - FSA Insured
6,555 Sweetwater Authority, California, Water Revenue Bonds, Series 4/10 at 101.00 AAA 6,924,899
2002, 5.000%, 4/01/22 (Pre-refunded 4/01/10) - FSA Insured
2,000 University of California, Revenue Bonds, Research Facilities, 9/09 at 101.00 Aa1 (4) 2,064,200
Series 2001E, 5.000%, 9/01/22 (Pre-refunded 9/01/09) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
104,640 Total U.S. Guaranteed 113,425,554
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 17.2% (10.9% OF TOTAL INVESTMENTS)
2,000 Anaheim Public Finance Authority, California, Revenue Refunding 10/12 at 100.00 AAA 2,200,720
Bonds, Electric Generating System, Series 2002B,
5.250%, 10/01/18 - FSA Insured
1,810 Anaheim Public Finance Authority, California, Second Lien 10/14 at 100.00 AA- 1,885,025
Electric Distribution Revenue Bonds, Series 2004, 5.250%,
10/01/21 - MBIA Insured
10,350 California Pollution Control Financing Authority, Revenue No Opt. Call A+ 11,910,573
Bonds, San Diego Gas and Electric Company,
Series 1991A, 6.800%, 6/01/15 (Alternative Minimum Tax)
4,000 Imperial Irrigation District, California, Certificates of 11/13 at 100.00 AAA 4,112,280
Participation, Electric System Revenue Bonds,
Series 2003, 5.250%, 11/01/23 - FSA Insured
3,855 Long Beach Bond Finance Authority, California, Natural Gas No Opt. Call A+ 2,845,453
Purchase Revenue Bonds, Series 2007A, 5.500%, 11/15/37
5,000 Los Angeles Department of Water and Power, California, Power 7/11 at 100.00 AA- 5,257,550
System Revenue Bonds, Series 2001A-2, 5.375%,
7/01/20 - MBIA Insured
5,000 Los Angeles Department of Water and Power, California, Power 7/15 at 100.00 AAA 4,907,350
System Revenue Bonds, Series 2005, 5.000%,
7/01/31 - FSA Insured (UB)
5,225 Los Angeles, California, Sanitation Equipment Charge Revenue 2/11 at 100.00 AAA 5,472,508
Bonds, Series 2001A, 5.250%, 2/01/18 - FSA Insured
1,025 Los Angeles, California, Sanitation Equipment Charge Revenue 2/14 at 100.00 AA 1,051,947
Bonds, Series 2004A, 5.000%, 2/01/22 - AMBAC Insured
Merced Irrigation District, California, Electric System Revenue
Bonds, Series 2005:
1,260 5.125%, 9/01/31 - SYNCORA GTY Insured 9/15 at 100.00 N/R 901,429
2,800 5.250%, 9/01/36 - SYNCORA GTY Insured 9/15 at 100.00 N/R 1,966,272
4,360 Sacramento Municipal Utility District, California, Electric 8/12 at 100.00 AAA 4,541,027
Revenue Refunding Bonds, Series 2002Q, 5.250%, 8/15/19 -
FSA Insured
3,460 Southern California Public Power Authority, Revenue Bonds, 7/13 at 100.00 A+ 3,585,390
Magnolia Power Project, Series 2003-1A, 5.000%, 7/01/20 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
50,145 Total Utilities 50,637,524
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 7.3% (4.6% OF TOTAL INVESTMENTS)
1,185 Burbank, California, Wastewater System Revenue Bonds, Series 6/14 at 100.00 AA- 1,196,909
2004A, 5.000%, 6/01/24 - AMBAC Insured
890 Healdsburg Public Financing Authority, California, Wastewater 4/16 at 100.00 AA- 789,946
Revenue Bonds, Series 2006, 5.000%, 4/01/36 - MBIA Insured
1,250 Indio Water Authority, California, Water Revenue Bonds, Series 4/16 at 100.00 A+ 1,095,250
2006, 5.000%, 4/01/31 - AMBAC Insured
4,705 Madera Irrigation District. California, Water Revenue Refunding 1/18 at 100.00 A- 4,631,084
Bonds, Series 2008, 5.500%, 1/01/38
53
NVC | Nuveen California Select Quality Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS February 28, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 3,750 Metropolitan Water District of Southern California, Water 10/14 at 100.00 AAA $ 3,777,113
Revenue Bonds, Series 2004B-3,
5.000%, 10/01/29 - MBIA Insured
2,000 Pico Rivera Water Authority, California, Revenue Bonds, Series 12/11 at 102.00 N/R 1,564,460
2001A, 6.250%, 12/01/32
2,525 Sacramento County Sanitation District Financing Authority, No Opt. Call AA 2,871,556
California, Revenue Refunding Bonds,
Series 2001, 5.500%, 12/01/20 - AMBAC Insured
San Francisco City and County Public Utilities Commission,
California, Clean Water Revenue Refunding Bonds, Series 2003A:
2,120 5.250%, 10/01/19 - MBIA Insured 4/13 at 100.00 AA- 2,267,828
2,960 5.250%, 10/01/20 - MBIA Insured 4/13 at 100.00 AA- 3,118,360
------------------------------------------------------------------------------------------------------------------------------------
21,385 Total Water and Sewer 21,312,506
------------------------------------------------------------------------------------------------------------------------------------
$ 507,858 Total Long-Term Investments (cost $488,158,033) - 156.4% 459,896,000
============------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 1.4% (0.9% OF TOTAL INVESTMENTS)
$ 4,000 California Health Facilities Financing Authority, Revenue Bonds, VMIG-1 4,000,000
Catholic Healthcare West, Variable Rate Demand Obligations,
Series 2008B, 0.440%, 7//01/25 (5)
============------------------------------------------------------------------------------------------------------------------------
Total Short-Term Investments (cost $4,000,000) 4,000,000
----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $492,158,033) - 157.8% 463,896,000
----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (4.4)% (12,795,000)
----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.4% 7,067,820
----------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (55.8)% (6) (164,150,000)
----------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 294,018,820
======================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's Group ("Standard &
Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
The Portfolio of Investments may reflect the ratings on certain bonds
insured by ACA, AGC, AMBAC, FGIC, FSA, MBIA, RAAI and SYNCORA as of
February 28, 2009. Please see the Portfolio Manager's Commentary for an
expanded discussion of the affect on the Fund of changes to the ratings of
certain bonds in the portfolio resulting from changes to the ratings of
the underlying insurers both during the period and after period end.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) Investment has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term investment. The rate
disclosed is that in effect at the end of the reporting period. This rate
changes periodically based on market conditions or a specified market
index.
(6) Preferred Shares, at Liquidation Value as a percentage of Total
Investments is 35.4%.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140.
See accompanying notes to financial statements.
54
NUC | Nuveen California Quality Income Municipal Fund, Inc.
| Portfolio of INVESTMENTS February 28, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 5.3% (3.3% OF TOTAL INVESTMENTS)
$ 5,000 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 Baa3 $ 3,814,650
Settlement Asset-Backed Bonds, Alameda County Tobacco Asset
Securitization Corporation, Series 2002, 5.750%, 6/01/29
1,115 California County Tobacco Securitization Agency, Tobacco 6/15 at 100.00 BBB 969,024
Settlement Asset-Backed Bonds, Sonoma County Tobacco
Securitization Corporation, Series 2005, 4.250%, 6/01/21
4,620 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 Baa3 3,284,866
Settlement Asset-Backed Bonds, Stanislaus County Tobacco
Funding Corporation, Series 2002A, 5.500%, 6/01/33
8,065 California Statewide Financing Authority, Tobacco Settlement 5/12 at 100.00 Baa3 6,057,380
Asset-Backed Bonds, Pooled Tobacco Securitization Program,
Series 2002A, 5.625%, 5/01/29
3,370 Golden State Tobacco Securitization Corporation, California, 6/22 at 100.00 BBB 1,321,242
Enhanced Tobacco Settlement Asset-Backed Bonds,
Series 2007A-2, 0.000%, 6/01/37
------------------------------------------------------------------------------------------------------------------------------------
22,170 Total Consumer Staples 15,447,162
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 7.2% (4.6% OF TOTAL INVESTMENTS)
280 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 A3 235,040
University of Redlands, Series 2005A, 5.000%, 10/01/35
2,785 California Educational Facilities Authority, Revenue Bonds, 11/10 at 100.00 A2 2,788,258
University of the Pacific,
Series 2000, 5.750%, 11/01/30 - MBIA Insured
California Educational Facilities Authority, Revenue Bonds,
University of the Pacific, Series 2006:
195 5.000%, 11/01/21 11/15 at 100.00 A2 187,631
260 5.000%, 11/01/25 11/15 at 100.00 A2 231,930
4,640 California State Public Works Board, Lease Revenue Bonds, 3/18 at 100.00 AA- 3,944,464
University of California Regents,
Trust 1065, 8.969%, 3/01/33 (IF)
4,000 California State Public Works Board, Lease Revenue Refunding 3/09 at 100.00 A 4,012,000
Bonds, Community Colleges Projects,
Series 1996B, 5.625%, 3/01/19 - AMBAC Insured
6,400 California State University, Systemwide Revenue Bonds, Series 11/12 at 100.00 Aa3 6,598,848
2002A, 5.000%, 11/01/20 - AMBAC Insured
1,000 San Diego County, California, Certificates of Participation, 9/15 at 102.00 Baa3 668,150
Burnham Institute, Series 2006, 5.000%, 9/01/34
2,500 University of California, Revenue Bonds, Multi-Purpose Projects, 5/13 at 100.00 AA 2,448,275
Series 2003A, 5.000%, 5/15/33 - AMBAC Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
22,060 Total Education and Civic Organizations 21,114,596
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 12.1% (7.7% OF TOTAL INVESTMENTS)
1,750 ABAG Finance Authority for Non-Profit Corporations, California, 4/12 at 100.00 A 1,764,735
Cal-Mortgage Insured Revenue Bonds, Sansum-Santa Barbara
Medical Foundation Clinic, Series 2002A, 5.500%, 4/01/21
640 California Health Facilities Financing Authority, Revenue Bonds, 4/16 at 100.00 A+ 522,387
Kaiser Permanante System, Series 2006, 5.000%, 4/01/37
5,525 California Health Facilities Financing Authority, Revenue Bonds, 11/16 at 100.00 AA- 4,162,479
Sutter Health, Series 2008, Trust 3146, 12.371%, 11/15/46 (IF)
2,855 California Municipal Financing Authority, Certificates of 2/17 at 100.00 Baa2 1,851,924
Participation, Community Hospitals of Central California,
Series 2007, 5.250%, 2/01/46
55
NUC | Nuveen California Quality Income Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS February 28, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 1,225 California State Public Works Board, Revenue Bonds, University of 11/14 at 100.00 AA $ 1,242,738
California - Davis Medical Center,
Series 2004II-A, 5.000%, 11/01/23 - MBIA Insured
1,571 California Statewide Communities Development Authority, Revenue 7/18 at 100.00 AAA 1,022,658
Bonds, Saint Joseph Health System,
Trust 2554, 18.216%, 7/01/47 - FSA Insured (IF)
685 California Statewide Community Development Authority, Certificates No Opt. Call A2 735,711
of Participation, Cedars-Sinai Medical Center,
Series 1992, 6.500%, 8/01/12
1,500 California Statewide Community Development Authority, Revenue 7/15 at 100.00 BBB 1,002,120
Bonds, Daughters of Charity Health System,
Series 2005A, 5.250%, 7/01/30
17,075 California Statewide Community Development Authority, Revenue 3/16 at 100.00 A+ 13,704,566
Bonds, Kaiser Permanante System,
Series 2006, 5.000%, 3/01/41
3,015 California Statewide Community Development Authority, Revenue 8/16 at 100.00 A+ 2,624,346
Bonds, Kaiser Permanente System,
Series 2001C, 5.250%, 8/01/31
5,825 California Statewide Community Development Authority, Revenue 8/17 at 100.00 AA- 3,806,812
Bonds, Sutter Health, Series
2007C, Residuals 1975, 13.408%, 8/15/38 - AMBAC Insured (IF)
3,025 Loma Linda, California, Hospital Revenue Bonds, Loma Linda 12/38 at 100.00 BBB 2,979,897
University Medical Center, Series 2008A, 8.250%, 12/01/38
------------------------------------------------------------------------------------------------------------------------------------
44,691 Total Health Care 35,420,373
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 2.5% (1.6% OF TOTAL INVESTMENTS)
1,000 Independent Cities Lease Finance Authority, California, Revenue 11/14 at 100.00 N/R 691,610
Bonds, Morgan Hill, Hacienda Valley Mobile Home Park,
Series 2004A, 5.950%, 11/15/39
2,110 Irvine, California, Mobile Home Park Revenue Bonds, Meadows Mobile 3/09 at 101.00 N/R 1,859,986
Home Park, Series 1998A, 5.700%, 3/01/18
2,185 Oceanside, California, Mobile Home Park Revenue Bonds, Laguna 3/09 at 101.00 N/R 1,606,543
Vista Mobile Estates Acquisition Project,
Series 1998, 5.800%, 3/01/28
3,040 Riverside County, California, Mobile Home Park Revenue Bonds, 3/09 at 102.00 N/R 2,159,738
Bravo Mobile Home Park Project,
Series 1999A, 5.900%, 3/20/29
1,030 Yolo County Housing Authority, California, Revenue Refunding 5/09 at 100.00 Aa2 1,032,606
Bonds, Russell Park Apartments,
Series 1992A, 7.000%, 11/01/14
------------------------------------------------------------------------------------------------------------------------------------
9,365 Total Housing/Multifamily 7,350,483
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 1.0% (0.6% OF TOTAL INVESTMENTS)
645 California Housing Finance Agency, Home Mortgage Revenue Bonds, 2/16 at 100.00 Aa2 639,634
Series 2006H, 5.750%, 8/01/30 - FGIC Insured
(Alternative Minimum Tax)
3,910 California Housing Finance Agency, Home Mortgage Revenue Bonds, 2/16 at 100.00 AA- 2,271,945
Tender Option Bond Trust 11605, 17.446%, 8/01/26
(Alternative Minimum Tax) (IF)
------------------------------------------------------------------------------------------------------------------------------------
4,555 Total Housing/Single Family 2,911,579
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.6% (0.4% OF TOTAL INVESTMENTS)
2,000 California Pollution Control Financing Authority, Solid Waste 1/16 at 102.00 BBB 1,660,800
Disposal Revenue Bonds, Waste Management Inc.,
Series 2002A, 5.000%, 1/01/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 0.9% (0.6% OF TOTAL INVESTMENTS)
3,500 California Statewide Communities Development Authority, Revenue 12/17 at 100.00 Baa1 2,521,120
Bonds, Inland Regional Center Project,
Series 2007, 5.375%, 12/01/37
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 15.6% (9.9% OF TOTAL INVESTMENTS)
1,900 Azusa Unified School District, Los Angeles County, California, 7/12 at 100.00 AAA 2,043,754
General Obligation Bonds, Series 2002, 5.375%, 7/01/20 - FSA
Insured
5 California State, General Obligation Bonds, Series 2002, 5.250%, 4/12 at 100.00 A1 4,844
4/01/32
56
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 80 California, General Obligation Bonds, Series 2000, 5.500%, 6/01/25 6/10 at 100.00 A1 $ 80,298
6,085 California, General Obligation Veterans Welfare Bonds, Series 6/09 at 100.00 AA- 5,486,966
1997BJ, 5.700%, 12/01/32 (Alternative Minimum Tax)
1,370 Fremont-Newark Community College District, Alameda County, 8/11 at 101.00 AA- 1,463,352
California, General Obligation Bonds,
Series 2002A, 5.375%, 8/01/20 - MBIA Insured
3,610 Hartnell Community College District, California, General 6/16 at 100.00 AAA 3,606,173
Obligation Bonds, Series 2006, 5.000%, 6/01/29 - FSA Insured (UB)
5,255 Livermore Valley Joint Unified School District, Alameda County, 8/11 at 100.00 AAA 5,298,301
California, General Obligation Bonds, Election of 1999,
Series 2001, 5.125%, 8/01/26 - FSA Insured
2,645 Long Beach Community College District, California, General 5/15 at 100.00 AA- 2,577,367
Obligation Bonds, Series 2005B, 5.000%, 5/01/30 - FGIC Insured
1,170 Los Angeles Unified School District, California, General 7/13 at 100.00 AAA 1,283,607
Obligation Bonds, Series 2003F, 5.000%, 7/01/17 - FSA Insured
565 Roseville Joint Union High School District, Placer County, 8/15 at 100.00 AA- 565,288
California, General Obligation Bonds,
Series 2006B, 5.000%, 8/01/27 - FGIC Insured
1,500 Sacramento City Unified School District, Sacramento County, 7/15 at 100.00 Aa3 1,506,375
California, General Obligation Bonds,
Series 2005, 5.000%, 7/01/27 - MBIA Insured
6,760 San Diego Unified School District, San Diego County, California, 7/13 at 101.00 AAA 7,353,528
General Obligation Bonds,
Series 2003E, 5.250%, 7/01/21 - FSA Insured
515 San Joaquin Delta Community College District, California, General 8/15 at 100.00 AAA 514,979
Obligation Bonds, Series 2005A, 5.000%, 8/01/29 - FSA Insured
1,500 San Jose Unified School District, Santa Clara County, California, 8/15 at 100.00 AA 1,527,990
General Obligation Bonds, Series 2005B, 5.000%, 8/01/25 - FGIC
Insured
6,865 San Ramon Valley Unified School District, Contra Costa County, 8/13 at 100.00 AAA 7,026,053
California, General Obligation Bonds, Series 2003, 5.000%,
8/01/23 - FSA Insured (UB)
1,390 South Pasadena Unified School District, Los Angeles County, 8/13 at 100.00 AA- 1,434,466
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 3,997,809
California, General Obligation Bonds,
Series 2003B, 5.000%, 8/01/23 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
45,140 Total Tax Obligation/General 45,771,150
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 31.3% (19.8% OF TOTAL INVESTMENTS)
1,655 Bell Community Housing Authority, California, Lease Revenue Bonds, 10/15 at 100.00 A 1,329,395
Series 2005, 5.000%, 10/01/36 - AMBAC Insured
1,200 Burbank Public Financing Authority, California, Revenue Bonds, 12/12 at 100.00 A 1,059,672
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 A 3,181,840
Department of General Services, Capital East End Project,
Series 2002A, 5.250%, 12/01/16 - AMBAC Insured
2,030 California State Public Works Board, Lease Revenue Bonds, 3/12 at 100.00 A 2,097,234
Department of General Services,
Series 2002C, 5.250%, 3/01/21 - AMBAC Insured
5,115 California State Public Works Board, Lease Revenue Bonds, 6/14 at 100.00 A2 5,217,402
Department of Mental Health, Coalinga State Hospital,
Series 2004A, 5.500%, 6/01/20
2,715 California, Economic Recovery Revenue Bonds, Series 2004A, 5.000%, 7/14 at 100.00 A+ 2,888,679
7/01/15
690 Capistrano Unified School District, Orange County, California, 9/15 at 100.00 AA- 619,034
Special Tax Bonds, Community Facilities District,
Series 2005, 5.000%, 9/01/24 - FGIC Insured
3,000 Coachella Valley Unified School District, Riverside County, 9/16 at 100.00 Baa1 2,396,700
California, Certificates of Participation,
Series 2007, 5.000%, 9/01/31 - AMBAC Insured
57
NUC | Nuveen California Quality Income Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS February 28, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
Commerce Community Development Commission, California, Tax Allocation
Refunding Bonds, Merged Area Development Projects 2 and 3,
Series 1998A:
$ 1,000 5.650%, 8/01/18 8/09 at 101.00 N/R $ 898,140
2,765 5.700%, 8/01/28 8/09 at 101.00 N/R 2,096,782
1,250 Coronado Community Development Agency, California, Tax Allocation 9/15 at 100.00 A 1,061,288
Bonds, Community Development Project, Series 2005, 5.000%,
9/01/30 - AMBAC Insured
3,065 Corona-Norco Unified School District, Riverside County, California, 9/13 at 100.00 AA- 3,024,389
Special Tax Bonds, Community Facilities District 98-1,
Series 2003, 5.500%, 9/01/33 - MBIA Insured
1,490 Fresno, California, Certificates of Participation, Street 6/09 at 100.00 AA- 1,507,895
Improvement Project, Series 1991, 6.625%, 12/01/11
Golden State Tobacco Securitization Corporation, California,
Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A,
Trust 2215-1:
1,885 11.640%, 6/01/38 - FGIC Insured (IF) 6/15 at 100.00 A- 305,521
1,320 11.640%, 6/01/45 - FGIC Insured (IF) 6/15 at 100.00 A 12,012
9,500 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 A 7,684,930
Tobacco Settlement Asset-Backed Revenue Bonds,
Series 2005A, 5.000%, 6/01/35 - FGIC Insured
Irvine, California, Unified School District, Community
Facilities District Special Tax Bonds, Series 2006A:
335 5.000%, 9/01/26 9/16 at 100.00 N/R 266,111
775 5.125%, 9/01/36 9/16 at 100.00 N/R 566,525
3,245 Los Angeles Community Redevelopment Agency, California, Lease 9/15 at 100.00 A2 2,742,252
Revenue Bonds, Manchester Social Services Project,
Series 2005, 5.000%, 9/01/37 - AMBAC Insured
1,350 Los Angeles Community Redevelopment Agency, California, Subordinate 3/13 at 100.00 BBB- 1,154,939
Lien Tax Allocation Bonds, Bunker Hill Redevelopment Project,
Series 2004L, 5.100%, 3/01/19
4,850 Los Angeles County Metropolitan Transportation Authority, 7/13 at 100.00 AAA 5,320,935
California, Proposition A First Tier Senior Sales Tax Revenue
Bonds, Series 2003A, 5.000%, 7/01/16 - FSA Insured
15,300 Ontario Redevelopment Financing Authority, San Bernardino County, No Opt. Call AA- 19,366,434
California, Revenue Refunding Bonds, Redevelopment Project 1,
Series 1995, 7.400%, 8/01/25 - MBIA Insured
1,170 Panama-Buena Vista Union School District, California, Certificates 9/16 at 100.00 AA- 1,134,385
of Participation, School Construction Project,
Series 2006, 5.000%, 9/01/24 - MBIA Insured
Redding Redevelopment Agency, California, Tax Allocation Bonds,
Canby-Hilltop-Cypress Area Project, Series 2003A:
1,500 5.000%, 9/01/17 - MBIA Insured 9/13 at 100.00 AA- 1,539,105
1,500 5.000%, 9/01/20 - MBIA Insured 9/13 at 100.00 AA- 1,505,580
600 Rialto Redevelopment Agency, California, Tax Allocation Bonds, 9/15 at 100.00 A- 511,704
Merged Project Area, Series 2005A, 5.000%,
9/01/35 - SYNCORA GTY Insured
4,320 Richmond Joint Powers Financing Authority, California, Tax 9/13 at 100.00 AA- 4,321,685
Allocation Bonds, Series 2003A, 5.250%, 9/01/22 - MBIA Insured
2,000 Rohnert Park Community Development Commission, California, 8/17 at 100.00 AA- 1,690,400
Redevelopment Project Tax Allocation Bonds,
Series 2007R, 5.000%, 8/01/37 - FGIC Insured
745 Roseville, California, Certificates of Participation, Public 8/13 at 100.00 A+ 712,779
Facilities, Series 2003A, 5.000%, 8/01/25 - AMBAC Insured
8,625 Sacramento City Financing Authority, California, Capital 12/16 at 100.00 AA- 8,238,341
Improvement Revenue Bonds, 300 Richards Boulevard,
Series 2006C, 5.000%, 12/01/36 - AMBAC Insured
2,500 San Jose Financing Authority, California, Lease Revenue Refunding 9/11 at 100.00 AA+ 2,585,925
Bonds, Convention Center Project,
Series 2001F, 5.000%, 9/01/20 - MBIA Insured
2,770 Santa Ana Community Redevelopment Agency, Orange County, 9/13 at 100.00 AA- 2,821,771
California, Tax Allocation Refunding Bonds, South Main Street
Redevelopment, Series 2003B, 5.000%, 9/01/19 - FGIC Insured
2,090 Washington Unified School District, Yolo County, California, 8/17 at 100.00 A 1,705,691
Certificates of Participation,
Series 2007, 5.125%, 8/01/37 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
95,425 Total Tax Obligation/Limited 91,565,475
------------------------------------------------------------------------------------------------------------------------------------
58
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 15.1% (9.5% OF TOTAL INVESTMENTS)
$ 3,950 Bay Area Toll Authority, California, Revenue Bonds, San Francisco 4/16 at 100.00 AA $ 3,892,725
Bay Area Toll Bridge, Series 2006, 5.000%, 4/01/31 (UB)
970 Bay Area Toll Authority, California, Revenue Bonds, San Francisco 4/18 at 100.00 AA 942,220
Bay Area Toll Bridge, Series 2008,
Trust 3211, 12.855%, 4/01/39 (IF)
11,000 Foothill/Eastern Transportation Corridor Agency, California, Toll 1/14 at 101.00 BBB- 9,484,090
Road Revenue Refunding Bonds, Series 1999, 0.000%, 1/15/29
2,000 Orange County Transportation Authority, California, Toll Road 8/13 at 100.00 A1 2,074,420
Revenue Bonds, 91 Express Lanes Project,
Series 2003A, 5.000%, 8/15/20 - AMBAC Insured
2,685 Sacramento County, California, Airport System Revenue Bonds, Series 7/12 at 100.00 AAA 3,015,470
2002A, 5.250%, 7/01/21 - FSA Insured
20,000 San Francisco Airports Commission, California, Revenue Bonds, San 5/10 at 101.00 AAA 19,449,599
Francisco International Airport, Second Series 2000,
Issue 25, 5.750%, 5/01/30 - FSA Insured (Alternative Minimum Tax)
San Francisco Airports Commission, California, Revenue Refunding
Bonds, San Francisco International Airport, Second Series 2002,
Issue 28A:
1,480 5.250%, 5/01/17 - MBIA Insured (Alternative Minimum Tax) 5/12 at 100.00 AA- 1,459,028
3,865 5.250%, 5/01/19 - MBIA Insured (Alternative Minimum Tax) 5/12 at 100.00 AA- 3,747,388
------------------------------------------------------------------------------------------------------------------------------------
45,950 Total Transportation 44,064,940
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 47.9% (30.3% OF TOTAL INVESTMENTS) (4)
7,325 California County Tobacco Securitization Agency, Tobacco Settlement 6/12 at 100.00 N/R (4) 8,016,700
Asset-Backed Bonds, Sonoma County Tobacco Funding Corporation,
Series 2002B, 5.500%, 6/01/30 (Pre-refunded 6/01/12)
9,000 California Department of Water Resources, Power Supply Revenue 5/12 at 101.00 Aaa 10,110,870
Bonds, Series 2002A, 5.125%, 5/01/18 (Pre-refunded 5/01/12)
6,190 California Educational Facilities Authority, Revenue Bonds, 11/10 at 100.00 A2 (4) 6,671,644
University of the Pacific, Series 2000, 5.750%, 11/01/30
(Pre-refunded 11/01/10) - MBIA Insured
California Health Facilities Financing Authority, Revenue Bonds,
Cedars-Sinai Medical Center, Series 1999A:
2,955 6.125%, 12/01/30 (Pre-refunded 12/01/09) 12/09 at 101.00 N/R (4) 3,109,221
7,700 6.250%, 12/01/34 (Pre-refunded 12/01/09) 12/09 at 101.00 N/R (4) 8,109,178
8,000 California Pollution Control Financing Authority, Solid Waste 5/09 at 100.00 AAA 9,770,320
Disposal Revenue Bonds, North County Recycling Center,
Series 1991A, 6.750%, 7/01/17 (ETM)
1,965 California State, General Obligation Bonds, Series 2002, 5.250%, 4/12 at 100.00 AAA 2,186,652
4/01/32 (Pre-refunded 4/01/12)
1,515 California Statewide Community Development Authority, Water and 10/13 at 101.00 AAA 1,766,081
Wastewater Revenue Bonds, Pooled Financing Program,
Series 2004A, 5.250%, 10/01/24 (Pre-refunded 10/01/13) - FSA
Insured
California, General Obligation Bonds, Series 2000:
1,105 5.500%, 6/01/25 (Pre-refunded 6/01/10) 6/10 at 100.00 Aaa 1,162,427
315 5.500%, 6/01/25 (Pre-refunded 6/01/10) 6/10 at 100.00 Aaa 331,371
2,500 California, General Obligation Bonds, Series 2004, 5.125%, 2/01/27 2/14 at 100.00 AAA 2,877,900
(Pre-refunded 2/01/14)
4,440 Coast Community College District, Orange County, California, 8/13 at 100.00 AA (4) 5,043,662
General Obligation Refunding Bonds, Series 2003A, 5.000%, 8/01/22
(Pre-refunded 8/01/13) - MBIA Insured
1,615 Compton Unified School District, Los Angeles County, California, 9/13 at 100.00 AA (4) 1,872,593
General Obligation Bonds, Series 2003A, 5.375%, 9/01/19
(Pre-refunded 9/01/13) - MBIA Insured
12,805 Contra Costa County, California, GNMA Mortgage-Backed Securities No Opt. Call AAA 17,266,262
Program Home Mortgage Revenue Bonds, Series 1988, 8.250%, 6/01/21
(Alternative Minimum Tax) (ETM)
3,000 Daly City Housing Development Finance Agency, California, Mobile 12/13 at 102.00 N/R (4) 3,584,970
Home Park Revenue Bonds, Franciscan Mobile Home Park Project,
Series 2002A, 5.850%, 12/15/32 (Pre-refunded 12/15/13)
8,000 Los Angeles County Metropolitan Transportation Authority, 7/10 at 101.00 AA (4) 8,540,160
California, Proposition C Second Senior Lien Sales Tax Revenue
Bonds, Series 2000A, 5.250%, 7/01/25 (Pre-refunded 7/01/10) -
FGIC Insured
59
NUC | Nuveen California Quality Income Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS February 28, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 2,000 Los Angeles Unified School District, California, General Obligation 7/10 at 100.00 AA- (4) $ 2,118,620
Bonds, Series 2000D, 5.375%, 7/01/25
(Pre-refunded 7/01/10) - FGIC Insured
3,005 Monterey County, California, Certificates of Participation, Master 8/11 at 100.00 A3 (4) 3,277,764
Plan Financing, Series 2001, 5.000%, 8/01/20
(Pre-refunded 8/01/11) - MBIA Insured
2,375 Moreno Valley Unified School District, Riverside County, 8/14 at 100.00 AAA 2,774,499
California, General Obligation Bonds, Series 2004A, 5.250%, 8/01/24
(Pre-refunded 8/01/14) - FSA Insured
5,000 Puerto Rico Infrastructure Financing Authority, Special Obligation 10/10 at 101.00 AAA 5,324,900
Bonds, Series 2000A, 5.500%, 10/01/32
12,565 San Bernardino County, California, GNMA Mortgage-Backed Securities No Opt. Call AAA 14,638,476
Program Single Family Home Mortgage Revenue Bonds,
Series 1989A, 7.750%, 11/01/14 (Alternative Minimum Tax) (ETM)
3,000 San Francisco Airports Commission, California, Revenue Refunding 5/12 at 100.00 AA (4) 3,353,220
Bonds, San Francisco International Airport, Second
Series 2002, Issue 28B, 5.250%, 5/01/22 (Pre-refunded 5/01/12) -
MBIA Insured
1,615 University of California, Certificates of Participation, San Diego 1/10 at 101.00 Aaa 1,692,310
and Sacramento Campus Projects, Series 2002A, 5.250%, 1/01/21
(Pre-refunded 1/01/10)
University of California, Revenue Bonds, Multi-Purpose Projects,
Series 2002O:
5,265 5.000%, 9/01/18 (Pre-refunded 9/01/10) - FGIC Insured 9/10 at 101.00 AA (4) 5,625,073
10,255 5.000%, 9/01/19 (Pre-refunded 9/01/10) - FGIC Insured 9/10 at 101.00 AA (4) 10,956,339
------------------------------------------------------------------------------------------------------------------------------------
123,510 Total U.S. Guaranteed 140,181,212
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 7.7% (4.9% OF TOTAL INVESTMENTS)
3,695 Long Beach Bond Finance Authority, California, Natural Gas Purchase No Opt. Call A+ 2,504,508
Revenue Bonds, Series 2007A, 5.000%, 11/15/35
500 Los Angeles Department of Water and Power, California, Power System 7/15 at 100.00 AAA 490,735
Revenue Bonds, Series 2005, 5.000%, 7/01/31 - FSA Insured (UB)
Merced Irrigation District, California, Electric System Revenue
Bonds, Series 2005:
1,235 5.125%, 9/01/31 - SYNCORA GTY Insured 9/15 at 100.00 N/R 883,544
1,500 5.250%, 9/01/36 - SYNCORA GTY Insured 9/15 at 100.00 N/R 1,053,360
5,000 Merced Irrigation District, California, Revenue Certificates of 9/13 at 102.00 Baa3 3,632,100
Participation, Electric System Project,
Series 2003, 5.700%, 9/01/36
1,200 Sacramento Municipal Utility District, California, Electric Revenue No Opt. Call AA- 1,220,136
Bonds, Series 2004T, 5.250%, 5/15/23 - FGIC Insured
2,410 Sacramento Municipal Utility District, California, Electric Revenue 8/12 at 100.00 AAA 2,473,841
Refunding Bonds, Series 2002Q, 5.250%, 8/15/21 - FSA Insured
4,000 Southern California Public Power Authority, Revenue Bonds, Magnolia 7/13 at 100.00 A+ 4,144,960
Power Project, Series 2003-1A, 5.000%, 7/01/20 - AMBAC Insured
5,500 Southern California Public Power Authority, Revenue Bonds, Multiple No Opt. Call AA- 6,131,510
Projects, Series 1989, 6.750%, 7/01/11
------------------------------------------------------------------------------------------------------------------------------------
25,040 Total Utilities 22,534,694
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 7.7% (4.9% OF TOTAL INVESTMENTS)
5,525 California Statewide Community Development Authority, Water and 10/13 at 101.00 AAA 5,653,622
Wastewater Revenue Bonds, Pooled Financing Program,
Series 2004A, 5.250%, 10/01/24 - FSA Insured
1,600 Eastern Municipal Water District, California, Water and Sewerage 7/18 at 100.00 AA 1,682,304
System Revenue Certificates of Participation,
Series 2008, Trust 3220, 13.936%, 7/01/35 (IF)
Goleta Water District, California, Certificates of Participation
Revenue Bonds, Series 2003:
1,000 5.250%, 12/01/20 - MBIA Insured 12/13 at 100.00 AA- 1,054,220
1,440 5.250%, 12/01/21 - MBIA Insured 12/13 at 100.00 AA- 1,497,600
1,205 5.250%, 12/01/22 - MBIA Insured 12/13 at 100.00 AA- 1,254,465
60
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 850 Healdsburg Public Financing Authority, California, Wastewater 4/16 at 100.00 AA- $ 754,443
Revenue Bonds, Series 2006, 5.000%, 4/01/36 - MBIA Insured
1,250 Indio Water Authority, California, Water Revenue Bonds, Series 4/16 at 100.00 A+ 1,095,250
2006, 5.000%, 4/01/31 - AMBAC Insured
500 Norco, California, Certificates of Participation Refunding, Water 4/09 at 102.00 A 469,670
and Sewerage System Improvement Project,
Series 1998, 5.125%, 10/01/28 - AMBAC Insured
5,375 San Francisco City and County Public Utilities Commission, 11/12 at 100.00 AA- 5,666,863
California, Water Revenue Bonds,
Series 2002A, 5.000%, 11/01/19 - MBIA Insured
Turlock Public Finance Authority, California, Sewerage Revenue
Bonds, Series 2003A:
1,565 5.000%, 9/15/19 - FGIC Insured 9/13 at 100.00 AA 1,630,808
1,650 5.000%, 9/15/20 - FGIC Insured 9/13 at 100.00 AA 1,699,979
------------------------------------------------------------------------------------------------------------------------------------
21,960 Total Water and Sewer 22,459,224
------------------------------------------------------------------------------------------------------------------------------------
$ 465,366 Total Long-Term Investments (cost $465,884,360) - 154.9% 453,002,808
============------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 3.1% (1.9% OF TOTAL INVESTMENTS)
$ 9,000 California Health Facilities Financing Authority, Revenue Bonds, VMIG-1 9,000,000
Catholic Healthcare West, Variable Rate Demand Obligations,
Series 2008B, 0.440%, 7//01/25 (5)
============------------------------------------------------------------------------------------------------------------------------
Total Short-Term Investments (cost $9,000,000) 9,000,000
----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $474,884,360) - 158.0% 462,002,808
----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (3.4)% (10,060,000)
----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.8% 5,455,463
----------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (56.4)% (6) (165,025,000)
----------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 292,373,271
======================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's Group ("Standard &
Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
The Portfolio of Investments may reflect the ratings on certain bonds
insured by ACA, AGC, AMBAC, FGIC, FSA, MBIA, RAAI and SYNCORA as of
February 28, 2009. Please see the Portfolio Manager's Commentary for an
expanded discussion of the affect on the Fund of changes to the ratings of
certain bonds in the portfolio resulting from changes to the ratings of
the underlying insurers both during the period and after period end.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) Investment has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term investment. The rate
disclosed is that in effect at the end of the reporting period. This rate
changes periodically based on market conditions or a specified market
index.
(6) Preferred Shares, at Liquidation Value as a percentage of Total
Investments is 35.7%.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140.
See accompanying notes to financial statements.
61
| Statement of ASSETS & LIABILITIES February 28, 2009
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
VALUE PERFORMANCE PLUS OPPORTUNITY INVESTMENT QUALITY
(NCA) (NCP) (NCO) (NQC)
-------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $230,481,378,
$270,743,082, $170,369,705,
$289,071,514, $492,158,033
and $474,884,360, respectively) $ 221,709,908 $ 255,144,223 $ 162,729,830 $ 273,736,797
Cash 964,217 26,376 1,657,092 --
Receivables:
Interest 3,025,811 4,405,166 2,302,983 4,763,471
Investments sold 535,321 -- -- --
Other assets 11,650 21,018 3,856 23,574
-------------------------------------------------------------------------------------------------------------------------------
Total assets 226,246,907 259,596,783 166,693,761 278,523,842
-------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- -- -- 925,399
Floating rate obligations 1,250,000 3,595,000 1,610,000 9,535,000
Payables:
Common share dividends 857,243 648,582 432,422 733,679
Preferred share dividends N/A 348,595 145,945 351,316
Accrued expenses:
Management fees 104,784 126,735 81,956 132,574
Other 86,257 79,683 41,882 85,100
-------------------------------------------------------------------------------------------------------------------------------
Total liabilities 2,298,284 4,798,595 2,312,205 11,763,068
-------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value N/A 91,175,000 58,900,000 94,925,000
-------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 223,948,623 $ 163,623,188 $ 105,481,556 $ 171,835,774
===============================================================================================================================
Common shares outstanding 25,253,681 12,951,242 8,161,648 13,580,232
===============================================================================================================================
Net asset value per Common share
outstanding (net assets applicable
to Common shares, divided by
Common shares outstanding) $ 8.87 $ 12.63 $ 12.92 $ 12.65
===============================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
-------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 252,537 $ 129,512 $ 81,616 $ 135,802
Paid-in surplus 237,696,722 181,176,098 113,834,376 189,659,207
Undistributed (Over-distribution of)
net investment income 597,876 644,434 476,349 665,502
Accumulated net realized gain (loss) from
investments and derivative transactions (5,827,042) (2,727,997) (1,270,910) (3,290,020)
Net unrealized appreciation (depreciation)
of investments (8,771,470) (15,598,859) (7,639,875) (15,334,717)
-------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 223,948,623 $ 163,623,188 $ 105,481,556 $ 171,835,774
===============================================================================================================================
Authorized shares:
Common 250,000,000 200,000,000 200,000,000 200,000,000
Preferred N/A 1,000,000 1,000,000 1,000,000
===============================================================================================================================
CALIFORNIA CALIFORNIA
SELECT QUALITY QUALITY INCOME
(NVC) (NUC)
----------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $230,481,378,
$270,743,082, $170,369,705,
$289,071,514, $492,158,033
and $474,884,360, respectively) $ 463,896,000 $ 462,002,808
Cash -- --
Receivables:
Interest 7,435,469 7,389,945
Investments sold 2,040,000 240,000
Other assets 38,450 38,935
----------------------------------------------------------------------------------------
Total assets 473,409,919 469,671,688
----------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 262,684 48,168
Floating rate obligations 12,795,000 10,060,000
Payables:
Common share dividends 1,239,544 1,211,322
Preferred share dividends 609,627 592,126
Accrued expenses:
Management fees 224,219 224,190
Other 110,025 137,611
----------------------------------------------------------------------------------------
Total liabilities 15,241,099 12,273,417
----------------------------------------------------------------------------------------
Preferred shares, at liquidation value 164,150,000 165,025,000
----------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 294,018,820 $ 292,373,271
========================================================================================
Common shares outstanding 23,109,670 22,002,190
========================================================================================
Net asset value per Common share
outstanding (net assets applicable
to Common shares, divided by
Common shares outstanding) $ 12.72 $ 13.29
========================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
----------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 231,097 $ 220,022
Paid-in surplus 322,352,311 306,607,805
Undistributed (Over-distribution of)
net investment income 1,253,610 910,345
Accumulated net realized gain (loss) from
investments and derivative transactions (1,556,165) (2,483,349)
Net unrealized appreciation (depreciation)
of investments (28,262,033) (12,881,552)
----------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 294,018,820 $ 292,373,271
========================================================================================
Authorized shares:
Common 200,000,000 200,000,000
Preferred 1,000,000 1,000,000
========================================================================================
N/A - Fund is not authorized to issue Preferred shares.
See accompanying notes to financial statements.
62
| Statement of OPERATIONS
CALIFORNIA VALUE (NCA) CALIFORNIA PERFORMANCE PLUS (NCP)
---------------------------------- -------------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED
2/28/09 8/31/08 2/28/09 8/31/08
-------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 6,673,784 $ 13,447,961 $ 7,264,320 $ 15,267,277
-------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 658,250 1,383,651 824,239 1,848,883
Preferred shares - auction fees N/A N/A 122,287 264,975
Preferred shares - dividend
disbursing agent fees N/A N/A 14,868 30,000
Shareholders' servicing agent fees
and expenses 13,322 32,363 7,312 19,101
Interest expense on floating rate obligations 21,772 116,513 48,019 137,462
Custodian's fees and expenses 32,390 76,916 19,885 79,346
Directors' fees and expenses 2,606 5,730 915 9,208
Professional fees 17,231 19,919 20,868 29,610
Shareholders' reports - printing
and mailing expenses 26,725 45,391 19,679 37,322
Stock exchange listing fees 4,564 9,367 4,564 9,367
Investor relations expense 17,799 28,308 17,397 28,529
Other expenses 5,522 10,214 15,595 29,916
-------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit 800,181 1,728,372 1,115,628 2,523,719
Custodian fee credit (1,848) (23,941) (18,168) (20,349)
-------------------------------------------------------------------------------------------------------------------------------
Net expenses 798,333 1,704,431 1,097,460 2,503,370
-------------------------------------------------------------------------------------------------------------------------------
Net investment income 5,875,451 11,743,530 6,166,860 12,763,907
-------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments (5,670,030) 1,595,437 (2,747,246) 1,252,724
Forward swaps -- 1,544,426 -- 481,957
Change in net unrealized appreciation
(depreciation) of:
Investments (12,226,342) (6,882,534) (16,103,772) (8,379,980)
Forward swaps -- (642,663) -- (146,052)
-------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) (17,896,372) (4,385,334) (18,851,018) (6,791,351)
-------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income N/A N/A (1,519,501) (3,265,290)
From accumulated net realized gains N/A N/A (329,805) (348,912)
-------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Preferred shareholders N/A N/A (1,849,306) (3,614,202)
-------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations $ (12,020,921) $ 7,358,196 $ (14,533,464) $ 2,358,354
==============================================================================================================================
CALIFORNIA OPPORTUNITY (NCO)
-----------------------------------
SIX MONTHS
ENDED YEAR ENDED
2/28/09 8/31/08
----------------------------------------------------------------------------------------
INVESTMENT INCOME $ 4,842,013 $ 9,863,381
----------------------------------------------------------------------------------------
EXPENSES
Management fees 541,637 1,188,601
Preferred shares - auction fees 82,404 170,000
Preferred shares - dividend
disbursing agent fees 9,918 20,000
Shareholders' servicing agent fees
and expenses 4,540 12,221
Interest expense on floating rate obligations 22,685 103,449
Custodian's fees and expenses 14,976 56,859
Directors' fees and expenses 2,175 4,283
Professional fees 16,401 22,769
Shareholders' reports - printing
and mailing expenses 15,294 24,550
Stock exchange listing fees 4,583 9,396
Investor relations expense 11,378 18,320
Other expenses 31,248 7,623
----------------------------------------------------------------------------------------
Total expenses before custodian fee credit 757,239 1,638,071
Custodian fee credit (12,024) (12,310)
----------------------------------------------------------------------------------------
Net expenses 745,215 1,625,761
----------------------------------------------------------------------------------------
Net investment income 4,096,798 8,237,620
----------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments (1,281,316) 240,166
Forward swaps -- 319,511
Change in net unrealized appreciation
(depreciation) of:
Investments (9,841,190) (4,808,766)
Forward swaps -- 1,358
----------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) (11,122,506) (4,247,731)
----------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (1,003,786) (2,153,159)
From accumulated net realized gains (140,553) (215,479)
----------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Preferred shareholders (1,144,339) (2,368,638)
----------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations $ (8,170,047) $ 1,621,251
========================================================================================
N/A - Fund is not authorized to issue Preferred shares.
See accompanying notes to financial statements.
63
| Statement of OPERATIONS (continued)
CALIFORNIA INVESTMENT QUALITY (NQC) CALIFORNIA SELECT QUALITY (NVC)
---------------------------------- -------------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED
2/28/09 8/31/08 2/28/09 8/31/08
-------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 7,849,675 $ 16,327,959 $ 13,565,509 $ 27,912,079
-------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 840,358 1,950,563 1,436,997 3,285,608
Preferred shares - auction fees 117,681 279,908 208,947 479,646
Preferred shares - dividend
disbursing agent fees 9,918 20,000 14,870 30,000
Shareholders' servicing agent fees
and expenses 6,825 17,984 9,161 24,545
Interest expense on floating rate obligations 148,478 291,576 163,860 340,053
Custodian's fees and expenses 27,882 79,272 36,686 127,877
Directors' fees and expenses 3,350 6,851 5,654 12,672
Professional fees 21,609 27,254 28,151 28,662
Shareholders' reports - printing
and mailing expenses 22,902 37,298 33,990 52,568
Stock exchange listing fees 4,564 9,367 4,564 9,367
Investor relations expense 18,072 30,074 29,748 49,277
Other expenses 15,821 30,507 18,807 36,917
-------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit 1,237,460 2,780,654 1,991,435 4,477,192
Custodian fee credit (9,295) (15,904) (30,562) (32,565)
-------------------------------------------------------------------------------------------------------------------------------
Net expenses 1,228,165 2,764,750 1,960,873 4,444,627
-------------------------------------------------------------------------------------------------------------------------------
Net investment income 6,621,510 13,563,209 11,604,636 23,467,452
-------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments (3,826,201) 1,706,500 (2,374,000) 2,014,812
Forward swaps -- 1,916,826 -- 3,564,177
Change in net unrealized appreciation
(depreciation) of:
Investments (16,483,350) (9,296,655) (30,264,282) (14,542,844)
Forward swaps -- (579,016) -- (1,075,627)
-------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) (20,309,551) (6,252,345) (32,638,282) (10,039,482)
-------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (1,461,245) (3,599,218) (2,594,564) (5,994,043)
From accumulated net realized gains (332,447) (59,134) (589,101) (410,088)
-------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Preferred shareholders (1,793,692) (3,658,352) (3,183,665) (6,404,131)
-------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations $ (15,481,733) $ 3,652,512 $ 24,21) $ 7,023,839
==============================================================================================================================
CALIFORNIA QUALITY INCOME (NUC)
----------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED
2/28/09 8/31/08
----------------------------------------------------------------------------------------
INVESTMENT INCOME $ 13,358,676 $ 27,298,003
----------------------------------------------------------------------------------------
EXPENSES
Management fees 1,420,892 3,189,721
Preferred shares - auction fees 204,586 462,279
Preferred shares - dividend
disbursing agent fees 14,877 30,000
Shareholders' servicing agent fees
and expenses 8,452 20,911
Interest expense on floating rate obligations 142,989 335,404
Custodian's fees and expenses 42,848 151,698
Directors' fees and expenses 6,074 11,543
Professional fees 29,933 38,110
Shareholders' reports - printing
and mailing expenses 32,939 53,256
Stock exchange listing fees 4,599 9,414
Investor relations expense 29,110 48,039
Other expenses 17,821 44,495
----------------------------------------------------------------------------------------
Total expenses before custodian fee credit 1,955,120 4,394,870
Custodian fee credit (24,231) (22,896)
----------------------------------------------------------------------------------------
Net expenses 1,930,889 4,371,974
----------------------------------------------------------------------------------------
Net investment income 11,427,787 22,926,029
----------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments (3,266,270) 1,242,906
Forward swaps -- 3,851,151
Change in net unrealized appreciation
(depreciation) of:
Investments (25,106,877) (9,075,658)
Forward swaps -- (1,162,220)
----------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) (28,373,147) (5,143,821)
----------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (2,539,390) (6,363,248)
From accumulated net realized gains (559,269) --
----------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Preferred shareholders (3,098,659) (6,363,248)
----------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations $ (20,044,019) $ 11,418,960
========================================================================================
See accompanying notes to financial statements.
64
| Statement of CHANGES in NET ASSETS
CALIFORNIA VALUE (NCA)
-----------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED YEAR ENDED
2/28/09 8/31/08 8/31/07
----------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 5,875,451 $ 11,743,530 $ 11,458,806
Net realized gain (loss) from:
Investments (5,670,030) 1,595,437 285,881
Forward swaps -- 1,544,426 116,800
Change in net unrealized appreciation
(depreciation) of:
Investments (12,226,342) (6,882,534) (6,426,708)
Forward swaps -- (642,663) (56,964)
Distributions to Preferred Shareholders:
From net investment income N/A N/A N/A
From accumulated net realized gains N/A N/A N/A
----------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations (12,020,921) 7,358,196 5,377,815
----------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (5,757,840) (11,057,213) (11,512,039)
From accumulated net realized gains (3,257,725) (451,828) (712,571)
Decrease in net assets applicable
to Common shares from
distributions to Common
shareholders (9,015,565) (11,509,041) (12,224,610)
----------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions -- 114,284 --
Repurchased -- -- --
----------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
capital share transactions -- 114,284 --
----------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (21,036,486) (4,036,561) (6,846,795)
Net assets applicable to Common
shares at the beginning of period 244,985,109 249,021,670 255,868,465
----------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $ 223,948,623 $ 244,985,109 $ 249,021,670
==========================================================================================================
Undistributed (Over-distribution of)
net investment income at the end
of period $ 597,876 $ 488,787 $ (189,797)
==========================================================================================================
CALIFORNIA PERFORMANCE PLUS (NCP)
-----------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED YEAR ENDED
2/28/09 8/31/08 8/31/07
----------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 6,166,860 $ 12,763,907 $ 12,506,724
Net realized gain (loss) from:
Investments (2,747,246) 1,252,724 707,835
Forward swaps -- 481,957 731,300
Change in net unrealized appreciation
(depreciation) of:
Investments (16,103,772) (8,379,980) (8,786,247)
Forward swaps -- (146,052) (556,393)
Distributions to Preferred Shareholders:
From net investment income (1,519,501) (3,265,290) (3,344,706)
From accumulated net realized gains (329,805) (348,912) (208,558)
----------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations (14,533,464) 2,358,354 1,049,955
----------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (4,512,080) (8,917,838) (9,259,482)
From accumulated net realized gains (1,128,020) (963,355) (683,961)
----------------------------------------------------------------------------------------------------------
Decrease in net assets applicable
to Common shares from
distributions to Common
shareholders (5,640,100) (9,881,193) (9,943,443)
----------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions -- -- --
Repurchased (146,188) -- --
----------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
capital share transactions (146,188) -- --
----------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (20,319,752) (7,522,839) (8,893,488)
Net assets applicable to Common
shares at the beginning of period 183,942,940 191,465,779 200,359,267
----------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $ 163,623,188 $ 183,942,940 $ 191,465,779
==========================================================================================================
Undistributed (Over-distribution of)
net investment income at the end
of period $ 644,434 $ 511,590 $ (42,624)
==========================================================================================================
N/A - Fund is not authorized to issue Preferred shares.
See accompanying notes to financial statements.
65
| Statement of CHANGES in NET ASSETS (continued)
CALIFORNIA OPPORTUNITY (NCO)
-----------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED YEAR ENDED
2/28/09 8/31/08 8/31/07
----------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 4,096,798 $ 8,237,620 $ 8,093,150
Net realized gain (loss) from:
Investments (1,281,316) 240,166 1,377,217
Forward swaps -- 319,511 (85,714)
Change in net unrealized appreciation
(depreciation) of:
Investments (9,841,190) (4,808,766) (6,864,917)
Forward swaps -- 1,358 (1,358)
Distributions to Preferred Shareholders:
From net investment income (1,003,786) (2,153,159) (2,275,505)
From accumulated net realized gains (140,553) (215,479) --
----------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations (8,170,047) 1,621,251 242,873
----------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (2,867,056) (5,776,585) (6,489,586)
From accumulated net realized gains (379,007) (607,718) --
----------------------------------------------------------------------------------------------------------
Decrease in net assets applicable
to Common shares from
distributions to Common
shareholders (3,246,063) (6,384,303) (6,489,586)
----------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions -- -- 182,321
Repurchased (66,830) -- --
----------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
capital share transactions (66,830) -- 182,321
----------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (11,482,940) (4,763,052) (6,064,392)
Net assets applicable to Common
shares at the beginning of period 116,964,496 121,727,548 127,791,940
----------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $ 105,481,556 $ 116,964,496 $ 121,727,548
==========================================================================================================
Undistributed (Over-distribution of)
net investment income at the end
of period $ 476,349 $ 233,032 $ (57,947)
==========================================================================================================
CALIFORNIA INVESTMENT QUALITY (NQC)
-----------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED YEAR ENDED
2/28/09 8/31/08 8/31/07
----------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 6,621,510 $ 13,563,209 $ 13,162,184
Net realized gain (loss) from:
Investments (3,826,201) 1,706,500 14,246
Forward swaps -- 1,916,826 55,300
Change in net unrealized appreciation
(depreciation) of:
Investments (16,483,350) (9,296,655) (8,137,893)
Forward swaps -- (579,016) (117,109)
Distributions to Preferred Shareholders:
From net investment income (1,461,245) (3,599,218) (3,463,790)
From accumulated net realized gains (332,447) (59,134) (261,799)
----------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations (15,481,733) 3,652,512 1,251,139
----------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (4,929,626) (9,784,557) (9,533,321)
From accumulated net realized gains (2,524,565) (162,963) (893,572)
----------------------------------------------------------------------------------------------------------
Decrease in net assets applicable
to Common shares from
distributions to Common
shareholders (7,454,191) (9,947,520) (10,426,893)
----------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions -- -- --
Repurchased -- -- --
----------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
capital share transactions -- -- --
----------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (22,935,924) (6,295,008) (9,175,754)
Net assets applicable to Common
shares at the beginning of period 194,771,698 201,066,706 210,242,460
----------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $ 171,835,774 $ 194,771,698 $ 201,066,706
==========================================================================================================
Undistributed (Over-distribution of)
net investment income at the end
of period $ 665,502 $ 435,127 $ 204,202
==========================================================================================================
See accompanying notes to financial statements.
66
CALIFORNIA SELECT QUALITY (NVC)
-----------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED YEAR ENDED
2/28/09 8/31/08 8/31/07
----------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 11,604,636 $ 23,467,452 $ 22,553,630
Net realized gain (loss) from:
Investments (2,374,000) 2,014,812 607,991
Forward swaps -- 3,564,177 802,400
Change in net unrealized appreciation
(depreciation) of:
Investments (30,264,282) (14,542,844) (15,805,336)
Forward swaps -- (1,075,627) (424,362)
Distributions to Preferred Shareholders:
From net investment income (2,594,564) (5,994,043) (6,274,053)
From accumulated net realized gains (589,101) (410,088) (290,571)
----------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations (24,217,311) 7,023,839 1,169,699
----------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (8,396,144) (16,098,392) (17,364,648)
From accumulated net realized gains (4,082,422) (1,112,547) (1,062,552)
----------------------------------------------------------------------------------------------------------
Decrease in net assets applicable
to Common shares from
distributions to Common
shareholders (12,478,566) (17,210,939) (18,427,200)
----------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions -- -- 228,521
Repurchased (200,163) -- --
----------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
capital share transactions (200,163) -- 228,521
----------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (36,896,040) (10,187,100) (17,028,980)
Net assets applicable to Common
shares at the beginning of period 330,914,860 341,101,960 358,130,940
----------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $ 294,018,820 $ 330,914,860 $ 341,101,960
==========================================================================================================
Undistributed (Over-distribution of)
net investment income at the end
of period $ 1,253,610 $ 640,817 $ (697,633)
==========================================================================================================
CALIFORNIA QUALITY INCOME (NUC)
-----------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED YEAR ENDED
2/28/09 8/31/08 8/31/07
----------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 11,427,787 $ 22,926,029 $ 22,166,977
Net realized gain (loss) from:
Investments (3,266,270) 1,242,906 (86,120)
Forward swaps -- 3,851,151 (35,100)
Change in net unrealized appreciation
(depreciation) of:
Investments (25,106,877) (9,075,658) (12,873,328)
Forward swaps -- (1,162,220) (28,727)
Distributions to Preferred Shareholders:
From net investment income (2,539,390) (6,363,248) (6,134,827)
From accumulated net realized gains (559,269) -- (175,677)
----------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations (20,044,019) 11,418,960 2,833,198
----------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (8,125,415) (15,821,435) (16,895,802)
From accumulated net realized gains (3,624,507) -- (592,043)
----------------------------------------------------------------------------------------------------------
Decrease in net assets applicable
to Common shares from
distributions to Common
shareholders (11,749,922) (15,821,435) (17,487,845)
----------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions -- -- 315,124
Repurchased (186,501) -- --
----------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
capital share transactions (186,501) -- 315,124
----------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (31,980,442) (4,402,475) (14,339,523)
Net assets applicable to Common
shares at the beginning of period 324,353,713 328,756,188 343,095,711
----------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $ 292,373,271 $ 324,353,713 $ 328,756,188
==========================================================================================================
Undistributed (Over-distribution of)
net investment income at the end
of period $ 910,345 $ 156,979 $ (525,730)
==========================================================================================================
See accompanying notes to financial statements.
67
| Notes to FINANCIAL STATEMENTS
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The funds covered in this report and their corresponding Common share New York
Stock Exchange symbols are Nuveen California Municipal Value Fund, Inc. (NCA),
Nuveen California Performance Plus Municipal Fund, Inc. (NCP), Nuveen California
Municipal Market Opportunity Fund, Inc. (NCO), Nuveen California Investment
Quality Municipal Fund, Inc. (NQC), Nuveen California Select Quality Municipal
Fund, Inc. (NVC) and Nuveen California Quality Income Municipal Fund, Inc. (NUC)
(collectively, the "Funds"). The Funds are registered under the Investment
Company Act of 1940, as amended, as closed-end, diversified management
investment companies.
Each Fund seeks to provide current income exempt from both regular federal and
California state income taxes by investing primarily in a diversified portfolio
of municipal obligations issued by state and local government authorities within
the state of California or certain U.S. territories.
During the current fiscal period, the Board of Directors of the Funds approved a
change in the Funds' fiscal and tax years end from August 31 to February 28/29.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with US
generally accepted accounting principles.
Investment Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors. Prices of
forward swap contracts are also provided by an independent pricing service
approved by each Fund's Board of Directors. When market price quotes are not
readily available (which is usually the case for municipal securities), the
pricing service or, in the absence of a pricing service for a particular
investment or derivative instrument, the Board of Directors of the Fund, or its
designee, may establish fair value using a wide variety of market data including
yields or prices of investments of comparable quality, type of issue, coupon,
maturity and rating, market quotes or indications of value from security
dealers, evaluations of anticipated cash flows or collateral, general market
conditions and other information and analysis, including the obligor's credit
characteristics considered relevant. Temporary investments in securities that
have variable rate and demand features qualifying them as short-term investments
are valued at amortized cost, which approximates value.
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and
losses from transactions are determined on the specific identification method.
Investments purchased on a when-issued/delayed delivery basis may have extended
settlement periods. Any investments so purchased are subject to market
fluctuation during this period. The Funds have instructed the custodian to
segregate assets with a current value at least equal to the amount of the
when-issued/delayed delivery purchase commitments. At February 28, 2009, there
were no such outstanding purchase commitments in any of the Funds.
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
Investment income also includes paydown gains and losses, if any.
68
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute substantially all of its net investment income and net
capital gains to shareholders and to otherwise comply with the requirements of
Subchapter M of the Internal Revenue Code applicable to regulated investment
companies. Therefore, no federal income tax provision is required. Furthermore,
each Fund intends to satisfy conditions which will enable interest from
municipal securities, which is exempt from regular federal and California state
income taxes, to retain such tax-exempt status when distributed to shareholders
of the Funds. Net realized capital gains and ordinary income distributions paid
by the Funds are subject to federal taxation.
For all open tax years and all major taxing jurisdictions, management of the
Funds has concluded that there are no significant uncertain tax positions that
would require recognition in the financial statements. Open tax years are those
that are open for examination by taxing authorities (i.e., generally the last
four tax year ends and the interim tax period since then). Furthermore,
management of the Funds is also not aware of any tax positions for which it is
reasonably possible that the total amounts of unrecognized tax benefits will
significantly change in the next twelve months.
Dividends and Distributions to Common Shareholders
Dividends from tax-exempt net investment income are declared monthly. Net
realized capital gains and/or market discount from investment transactions, if
any, are distributed to shareholders at least annually. Furthermore, capital
gains are distributed only to the extent they exceed available capital loss
carryforwards.
Distributions to Common shareholders of tax-exempt net investment income, net
realized capital gains and/or market discount, if any, are recorded on the
ex-dividend date. The amount and timing of distributions are determined in
accordance with federal income tax regulations, which may differ from US
generally accepted accounting principles.
Preferred Shares
California Value (NCA) is not authorized to issue Preferred shares. The Funds
below have issued and outstanding Preferred shares, $25,000 stated value per
share, as a means of effecting financial leverage. Each Fund's Preferred shares
are issued in more than one Series. The dividend rate paid by the Funds on each
Series is determined every seven days, pursuant to a dutch auction process
overseen by the auction agent, and is payable at the end of each rate period. As
of February 28, 2009, the number of Preferred shares outstanding, by Series and
in total, for each Fund is as follows:
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
PERFORMANCE CALIFORNIA INVESTMENT SELECT QUALITY
PLUS OPPORTUNITY QUALITY QUALITY INCOME
(NCP) (NCO) (NQC) (NVC) (NUC)
--------------------------------------------------------------------------------------------------
Number of shares:
Series M -- -- 3,051 -- 1,249
Series T 1,548 -- -- 2,051 --
Series W 551 1,905 746 1,437 2,676
Series TH -- -- -- 3,078 --
Series F 1,548 451 -- -- 2,676
--------------------------------------------------------------------------------------------------
Total 3,647 2,356 3,797 6,566 6,601
==================================================================================================
Beginning in February 2008, more shares for sale were submitted in the regularly
scheduled auctions for the Preferred shares issued by the Funds than there were
offers to buy. This meant that these auctions "failed to clear," and that many
Preferred shareholders who wanted to sell their shares in these auctions were
unable to do so. Preferred shareholders unable to sell their shares received
distributions at the "maximum rate" applicable to failed auctions as calculated
in accordance with the pre-established terms of the Preferred shares.
These developments generally do not affect the management or investment policies
of the Funds. However, one implication of these auction failures for Common
shareholders is that the Funds' cost of leverage will likely be higher, at least
temporarily, than it otherwise would have been had the auctions continued to be
successful. As a result, the Funds' future Common share earnings may be lower
than they otherwise would have been.
69
| Notes to FINANCIAL STATEMENTS (continued)
As of February 28, 2009, California Performance Plus (NCP), California
Opportunity (NCO), California Investment Quality (NQC), California Select
Quality (NVC) and California Quality Income (NUC) redeemed $14,825,000,
$9,100,000, $17,075,000, $27,850,000 and $19,975,000 of their outstanding
Preferred shares, respectively, at liquidation value. There were no Preferred
share redemptions in any of the other Funds.
Inverse Floating Rate Securities
Each Fund is authorized to invest in inverse floating rate securities. An
inverse floating rate security is created by depositing a municipal bond,
typically with a fixed interest rate, into a special purpose trust created by a
broker-dealer. In turn, this trust (a) issues floating rate certificates, in
face amounts equal to some fraction of the deposited bond's par amount or market
value, that typically pay short-term tax-exempt interest rates to third parties,
and (b) issues to a long-term investor (such as one of the Funds) an inverse
floating rate certificate (sometimes referred to as an "inverse floater") that
represents all remaining or residual interest in the trust. The income received
by the inverse floater holder varies inversely with the short-term rate paid to
the floating rate certificates' holders, and in most circumstances the inverse
floater holder bears substantially all of the underlying bond's downside
investment risk and also benefits disproportionately from any potential
appreciation of the underlying bond's value. The price of an inverse floating
rate security will be more volatile than that of the underlying bond because the
interest rate is dependent on not only the fixed coupon rate of the underlying
bond but also on the short-term interest paid on the floating rate certificates,
and because the inverse floating rate security essentially bears the risk of
loss of the greater face value of the underlying bond.
A Fund may purchase an inverse floating rate security in a secondary market
transaction without first owning the underlying bond (referred to as an
"externally-deposited inverse floater"), or instead by first selling a
fixed-rate bond to a broker-dealer for deposit into the special purpose trust
and receiving in turn the residual interest in the trust (referred to as a
"self-deposited inverse floater"). The inverse floater held by a Fund gives the
Fund the right (a) to cause the holders of the floating rate certificates to
tender their notes at par, and (b) to have the broker transfer the fixed-rate
bond held by the trust to the Fund, thereby collapsing the trust. An investment
in an externally-deposited inverse floater is identified in the Portfolio of
Investments as "(IF) - Inverse floating rate investment." An investment in a
self-deposited inverse floater is accounted for as a financing transaction in
accordance with Statement of Financial Accounting Standards No. 140 (SFAS No.
140) "Accounting for Transfers and Servicing of Financial Assets and
Extinguishment of Liabilities." In such instances, a fixed-rate bond deposited
into a special purpose trust is identified in the Portfolio of Investments as
"(UB) - Underlying bond of an inverse floating rate trust," with the Fund
accounting for the short-term floating rate certificates issued by the trust as
"Floating rate obligations" on the Statement of Assets and Liabilities. In
addition, the Fund reflects in "Investment Income" the entire earnings of the
underlying bond and the related interest paid to the holders of the short-term
floating rate certificates is recognized as a "Interest expense on floating rate
obligations" on the Statement of Operations.
During the six months ended February 28, 2009, each Fund invested in externally
deposited inverse floaters and/or self-deposited inverse floaters.
Each Fund may also enter into shortfall and forbearance agreements (sometimes
referred to as a "recourse trust" or "credit recovery swap") (such agreements
referred to herein as "Recourse Trusts") with a broker-dealer by which a Fund
agrees to reimburse the broker-dealer, in certain circumstances, for the
difference between the liquidation value of the fixed-rate bond held by the
trust and the liquidation value of the floating rate certificates issued by the
trust plus any shortfalls in interest cash flows. Under these agreements, a
Fund's potential exposure to losses related to or on inverse floaters may
increase beyond the value of a Fund's inverse floater investments as a Fund may
potentially be liable to fulfill all amounts owed to holders of the floating
rate certificates. At period end, any such shortfall is recognized as
"Unrealized depreciation on Recourse Trusts" on the Statement of Assets and
Liabilities.
70
At February 28, 2009, none of the Funds were invested in any
externally-deposited Recourse Trusts.
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
CALIFORNIA PERFORMANCE CALIFORNIA INVESTMENT SELECT QUALITY
VALUE PLUS OPPORTUNITY QUALITY QUALITY INCOME
(NCA) (NCP) (NCO) (NQC) (NVC) (NUC)
----------------------------------------------------------------------------------------------------------------------------------
Maximum exposure to Recourse Trusts $ -- $ -- $ -- $ -- $ -- $ --
==================================================================================================================================
The average floating rate obligations outstanding and average annual interest
rate and fees related to self-deposited inverse floaters during the six months
ended February 28, 2009, were as follows:
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
CALIFORNIA PERFORMANCE CALIFORNIA INVESTMENT SELECT QUALITY
VALUE PLUS OPPORTUNITY QUALITY QUALITY INCOME
(NCA) (NCP) (NCO) (NQC) (NVC) (NUC)
----------------------------------------------------------------------------------------------------------------------------------
Average floating rate obligations $ 1,778,276 $ 4,129,994 $ 1,961,646 $ 12,290,110 $ 14,165,818 $ 11,857,370
Average annual interest rate and fees 2.47% 2.34% 2.33% 2.44% 2.33% 2.43%
==================================================================================================================================
Forward Swap Transactions
Each Fund is authorized to invest in forward interest rate swap transactions.
Each Fund's use of forward interest rate swap transactions is intended to help
the Fund manage its overall interest rate sensitivity, either shorter or longer,
generally to more closely align the Fund's interest rate sensitivity with that
of the broader municipal market. Forward interest rate swap transactions involve
each Fund's agreement with a counterparty to pay, in the future, a fixed or
variable rate payment in exchange for the counterparty paying the Fund a
variable or fixed rate payment, the accruals for which would begin at a
specified date in the future (the "effective date"). The amount of the payment
obligation is based on the notional amount of the forward swap contract and the
termination date of the swap (which is akin to a bond's maturity). The value of
the Fund's swap commitment would increase or decrease based primarily on the
extent to which long-term interest rates for bonds having a maturity of the
swap's termination date increases or decreases. The Funds may terminate a swap
contract prior to the effective date, at which point a realized gain or loss is
recognized. When a forward swap is terminated, it ordinarily does not involve
the delivery of securities or other underlying assets or principal, but rather
is settled in cash on a net basis. Each Fund intends, but is not obligated, to
terminate its forward swaps before the effective date. Accordingly, the risk of
loss with respect to the swap counterparty on such transactions is limited to
the credit risk associated with a counterparty failing to honor its commitment
to pay any realized gain to the Fund upon termination. None of the Funds
invested in forward interest rate swap transactions during the six months ended
February 28, 2009.
Market and Credit Risk
In the normal course of business each Fund may invest in financial instruments
and enter into financial transactions where risk of potential loss exists due to
changes in the market (market risk) or failure of the other party to the
transaction to perform (credit risk). Similar to credit risk, each Fund may be
exposed to counterparty risk, or the risk that an institution or other entity
with which the Fund has unsettled or open transactions will default. The
potential loss could exceed the value of the financial assets recorded on the
financial statements. Financial assets, which potentially expose each Fund to
credit risk, consist principally of cash due from counterparties on forward,
option and swap transactions. The extent of each Fund's exposure to credit and
counterparty risks in respect to these financial assets approximates their
carrying value as recorded on the Statement of Assets and Liabilities.
Each Fund helps manage credit risk by entering into agreements only with
counterparties Nuveen Asset Management (the "Adviser"), a wholly owned
subsidiary of Nuveen Investments Inc. ("Nuveen") believes have the financial
resources to honor their obligations and by having the Adviser monitor the
financial stability of the counterparties. Additionally, counterparties may be
required to pledge collateral daily (based on the daily valuation of the
financial asset) on behalf of each Fund with a value approximately equal to the
amount of any unrealized gain above a pre-determined threshold. Reciprocally,
when each Fund has an unrealized loss, the Funds have instructed the custodian
to pledge assets of the Funds as collateral with a value approximately equal to
the amount of the unrealized loss above a pre-determined threshold. Collateral
pledges are monitored and subsequently adjusted if and when the valuations
fluctuate, either up or down, by at least the predetermined threshold amount.
Zero Coupon Securities
Each Fund is authorized to invest in zero coupon securities. A zero coupon
security does not pay a regular interest coupon to its holders during the life
of the security. Tax-exempt income to the holder of the security comes from
accretion of the difference between the original purchase price of the security
at issuance and the par value of the security at maturity and is effectively
paid at maturity. Such securities are included in the Portfolios of Investments
with a 0.000% coupon rate in their description. The market prices of zero coupon
securities generally are more volatile than the market prices of securities that
pay interest periodically.
71
| Notes to FINANCIAL STATEMENTS (continued)
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by net credits earned on each Fund's cash on
deposit with the bank. Such deposit arrangements are an alternative to overnight
investments. Credits for cash balances may be offset by charges for any days on
which a Fund overdraws its account at the custodian bank.
Indemnifications
Under the Funds' organizational documents, their Officers and Directors are
indemnified against certain liabilities arising out of the performance of their
duties to the Funds. In addition, in the normal course of business, the Funds
enter into contracts that provide general indemnifications to other parties. The
Funds' maximum exposure under these arrangements is unknown as this would
involve future claims that may be made against the Funds that have not yet
occurred. However, the Funds have not had prior claims or losses pursuant to
these contracts and expect the risk of loss to be remote.
Use of Estimates
The preparation of financial statements in conformity with US generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of increases and decreases in net
assets applicable to Common shares from operations during the reporting period.
Actual results may differ from those estimates.
2. FAIR VALUE MEASUREMENTS
During the current fiscal period, the Funds adopted the provisions of Statement
of Financial Accounting Standards No. 157 (SFAS No. 157) "Fair Value
Measurements." SFAS No. 157 defines fair value, establishes a framework for
measuring fair value in generally accepted accounting principles, and expands
disclosure about fair value measurements. In determining the value of each
Fund's investments various inputs are used. These inputs are summarized in the
three broad levels listed below:
Level 1 - Quoted prices in active markets for identical securities.
Level 2 - Other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit
risk, etc.).
Level 3 - Significant unobservable inputs (including management's
assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not an indication of
the risk associated with investing in those securities.
The following is a summary of each Fund's fair value measurements as of February
28, 2009:
CALIFORNIA VALUE (NCA) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
-----------------------------------------------------------------------------------------------------------------------------
Investments $ -- $ 221,709,908 $ -- $ 221,709,908
=============================================================================================================================
CALIFORNIA PERFORMANCE PLUS (NCP) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
-----------------------------------------------------------------------------------------------------------------------------
Investments $ -- $ 255,144,223 $ -- $ 255,144,223
=============================================================================================================================
CALIFORNIA OPPORTUNITY (NCO) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
-----------------------------------------------------------------------------------------------------------------------------
Investments $ -- $ 162,729,830 $ -- $ 162,729,830
=============================================================================================================================
CALIFORNIA INVESTMENT QUALITY (NQC) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
-----------------------------------------------------------------------------------------------------------------------------
Investments $ -- $ 273,736,797 $ -- $ 273,736,797
=============================================================================================================================
72
CALIFORNIA SELECT QUALITY (NVC) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
-----------------------------------------------------------------------------------------------------------------------------
Investments $ -- $ 463,896,000 $ -- $ 463,896,000
=============================================================================================================================
CALIFORNIA QUALITY INCOME (NUC) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
-----------------------------------------------------------------------------------------------------------------------------
Investments $ -- $ 462,002,808 $ -- $ 462,002,808
=============================================================================================================================
3. FUND SHARES
Common Shares On
July 30, 2008, the Funds' Board of Directors approved an open market share
repurchase program under which each Fund may repurchase an aggregate of up to
approximately 10% of its outstanding Common shares.
Transactions in Common shares were as follows:
CALIFORNIA VALUE (NCA) CALIFORNIA PERFORMANCE PLUS (NCP)
------------------------------------ ------------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR ENDED ENDED YEAR ENDED YEAR ENDED
2/28/09 8/31/08 8/31/07 2/28/09 8/31/08 8/31/07
-----------------------------------------------------------------------------------------------------------------
Common shares:
Issued to shareholders due to
reinvestment of distributions -- 11,873 -- -- -- --
Repurchased -- -- -- (14,500) -- --
-----------------------------------------------------------------------------------------------------------------
Weighted average Common share:
Price per share repurchased -- -- -- $ 10.06 -- --
Discount per share repurchased -- -- -- 20.96% -- --
=================================================================================================================
CALIFORNIA OPPORTUNITY (NCO) CALIFORNIA INVESTMENT QUALITY (NQC)
------------------------------------ ------------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR ENDED ENDED YEAR ENDED YEAR ENDED
2/28/09 8/31/08 8/31/07 2/28/09 8/31/08 8/31/07
-----------------------------------------------------------------------------------------------------------------
Common shares:
Issued to shareholders due to
reinvestment of distributions -- -- 11,448 -- -- --
Repurchased (6,600) -- -- -- -- --
-----------------------------------------------------------------------------------------------------------------
Weighted average Common share:
Price per share repurchased $ 10.11 -- -- -- -- --
Discount per share repurchased 22.69% -- -- -- -- --
=================================================================================================================
CALIFORNIA SELECT QUALITY (NVC) CALIFORNIA QUALITY INCOME (NUC)
------------------------------------ ------------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR ENDED ENDED YEAR ENDED YEAR ENDED
2/28/09 8/31/08 8/31/07 2/28/09 8/31/08 8/31/07
-----------------------------------------------------------------------------------------------------------------
Common shares:
Issued to shareholders due to
reinvestment of distributions -- -- 15,014 -- -- 20,362
Repurchased (20,200) -- -- (17,900) -- --
-----------------------------------------------------------------------------------------------------------------
Weighted average Common share:
Price per share repurchased $ 9.89 -- -- $ 10.40 -- --
Discount per share repurchased 22.81% -- -- 22.38% -- --
=================================================================================================================
73
| Notes to FINANCIAL STATEMENTS (continued)
Preferred Shares
California Value (NCA) is not authorized to issue Preferred shares. Transactions
in Preferred shares were as follows:
CALIFORNIA PERFORMANCE PLUS (NCP)
-----------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED YEAR ENDED
2/28/09 8/31/08 8/31/07
-----------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
--------------------------------------------------------------------------------------------------------
Preferred shares redeemed:
Series T 149 $ 3,725,000 103 $ 2,575,000 -- $ --
Series W 52 1,300,000 37 925,000 -- --
Series F 149 3,725,000 103 2,575,000 -- --
--------------------------------------------------------------------------------------------------------
Total 350 $ 8,750,000 243 $ 6,075,000 -- $ --
========================================================================================================
CALIFORNIA OPPORTUNITY (NCO)
-----------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED YEAR ENDED
2/28/09 8/31/08 8/31/07
-----------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
--------------------------------------------------------------------------------------------------------
Preferred shares redeemed:
Series W 295 $ 7,375,000 -- $ -- -- $ --
Series F 69 1,725,000 -- -- -- --
--------------------------------------------------------------------------------------------------------
Total 364 $ 9,100,000 -- $ -- -- $ --
========================================================================================================
CALIFORNIA INVESTMENT QUALITY (NQC)
-----------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED YEAR ENDED
2/28/09 8/31/08 8/31/07
-----------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
--------------------------------------------------------------------------------------------------------
Preferred shares redeemed:
Series M -- $ -- 549 $ 13,725,000 -- $ --
Series W -- -- 134 3,350,000 -- --
--------------------------------------------------------------------------------------------------------
Total -- $ -- 683 $ 17,075,000 -- $ --
========================================================================================================
CALIFORNIA SELECT QUALITY (NVC)
-----------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED YEAR ENDED
2/28/09 8/31/08 8/31/07
-----------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
--------------------------------------------------------------------------------------------------------
Preferred shares redeemed:
Series T 65 $ 1,625,000 284 $ 7,100,000 -- $ --
Series W 44 1,100,000 199 4,975,000 -- --
Series TH 96 2,400,000 426 10,650,000 -- --
--------------------------------------------------------------------------------------------------------
Total 205 $ 5,125,000 909 $ 22,725,000 -- $ --
========================================================================================================
74
CALIFORNIA QUALITY INCOME (NUC)
-----------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED YEAR ENDED
2/28/09 8/31/08 8/31/07
-----------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
--------------------------------------------------------------------------------------------------------
Preferred shares redeemed:
Series M -- $ -- 151 $ 3,775,000 -- $ --
Series W -- -- 324 8,100,000 -- --
Series F -- -- 324 8,100,000 -- --
--------------------------------------------------------------------------------------------------------
Total -- $ -- 799 $ 19,975,000 -- $ --
========================================================================================================
4. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities but excluding short-term investments
and derivative transactions) during the six months ended February 28, 2009, 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 $ 27,894,481 $ 14,102,778 $ 7,206,022 $ 17,126,666 $ 28,051,804 $ 25,644,602
Sales and maturities 40,934,417 24,639,034 15,558,359 26,988,903 39,631,814 45,557,733
=============================================================================================================================
5. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to the timing differences in recognizing taxable market discount,
timing differences in recognizing certain gains and losses on investment
transactions and the treatment of investments in inverse floating rate
transactions subject to SFAS No. 140, if any. To the extent that differences
arise that are permanent in nature, such amounts are reclassified within the
capital accounts on the Statement of Assets and Liabilities presented in the
annual report, based on their federal tax basis treatment; temporary differences
do not require reclassification. Temporary and permanent differences do not
impact the net asset values of the Funds.
At February 28, 2009, the cost of investments was as follows:
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
CALIFORNIA PERFORMANCE CALIFORNIA INVESTMENT SELECT QUALITY
VALUE PLUS OPPORTUNITY QUALITY QUALITY INCOME
(NCA) (NCP) (NCO) (NQC) (NVC) (NUC)
-------------------------------------------------------------------------------------------------------------------------------
Cost of investments $ 229,300,067 $ 267,031,940 $ 168,698,711 $279,450,567 $ 479,374,736 $464,907,948
===============================================================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at February 28, 2009, 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 $ 11,013,769 $ 6,180,884 $ 6,533,339 $ 8,883,614 $ 15,620,297 $ 21,427,946
Depreciation (19,853,940) (21,667,496) (14,117,846) (24,131,411) (43,874,635) (34,393,162)
-------------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation
(depreciation) of investments $ (8,840,171) $ (15,486,612) $ (7,584,507) $(15,247,797) $ (28,254,338) $(12,965,216)
===============================================================================================================================
75
| Notes to FINANCIAL STATEMENTS (continued)
The tax components of undistributed net tax-exempt income, net ordinary income
and net long-term capital gains at February 28, 2009, the Funds' tax year end,
were as follows:
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
CALIFORNIA PERFORMANCE CALIFORNIA INVESTMENT SELECT QUALITY
VALUE PLUS OPPORTUNITY QUALITY QUALITY INCOME
(NCA) (NCP) (NCO) (NQC) (NVC) (NUC)
------------------------------------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income * $ 1,462,541 $ 1,568,569 $ 1,055,091 $ 1,688,789 $ 3,149,553 $ 2,816,621
Undistributed net ordinary income ** -- -- -- 83,341 531,361 360,260
Undistributed net long-term capital
gains -- 81,057 -- 515,283 390,678 539,793
====================================================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on February 3, 2009, paid on March 2, 2009.
** 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 six months ended February 28,
2009, and during the tax years ended August 31, 2008 and August 31, 2007, was
designated for purposes of the dividends paid deduction as follows:
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
CALIFORNIA PERFORMANCE CALIFORNIA INVESTMENT SELECT QUALITY
VALUE PLUS OPPORTUNITY QUALITY QUALITY INCOME
SIX MONTHS ENDED FEBRUARY 28, 2009 (NCA) (NCP) (NCO) (NQC) (NVC) (NUC)
------------------------------------------------------------------------------------------------------------------------------------
Distributions from tax-exempt income*** $ 5,718,780 $ 5,707,942 $ 3,739,785 $ 6,056,724 $ 10,375,312 $ 10,102,216
Distributions from ordinary income ** 1,467,618 -- 136,923 395,027 2,686,610 1,677,624
Distributions from net long-term
capital gains**** 1,791,287 1,457,825 382,913 2,461,985 1,984,913 2,506,152
====================================================================================================================================
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
CALIFORNIA PERFORMANCE CALIFORNIA INVESTMENT SELECT QUALITY
VALUE PLUS OPPORTUNITY QUALITY QUALITY INCOME
2008 (NCA) (NCP) (NCO) (NQC) (NVC) (NUC)
------------------------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt
income $ 11,056,779 $ 12,093,815 $ 7,788,970 $ 13,039,199 $ 22,149,317 $ 22,202,204
Distributions from net ordinary
income ** -- 120,294 156,931 564,093 -- 44,856
Distributions from net long-term
capital gains 451,828 1,312,267 823,197 -- 1,522,635 --
====================================================================================================================================
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
CALIFORNIA PERFORMANCE CALIFORNIA INVESTMENT SELECT QUALITY
VALUE PLUS OPPORTUNITY QUALITY QUALITY INCOME
2007 (NCA) (NCP) (NCO) (NQC) (NVC) (NUC)
------------------------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt
income $ 11,560,751 $ 12,586,202 $ 8,568,752 $ 13,020,096 $ 23,676,926 $ 22,977,178
Distributions from net ordinary
income ** 1,772 81,182 237,458 82,870 118,707 76,734
Distributions from net long-term
capital gains 712,571 813,872 -- 1,072,501 1,353,123 767,720
====================================================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
*** The Funds hereby designate these amounts paid during the six months ended
February 28, 2009, as Exempt Interest Dividends.
**** The Funds designated as a long-term capital gain dividend, pursuant to the
Internal Revenue Code Section 852(b)(3), the amount necessary to reduce
earnings and profits of the Funds related to net capital gain to zero for
the six months ended February 28, 2009.
76
At February 28, 2009, the Funds' tax year end, the Funds had unused capital loss
carryforwards available for federal income tax purposes to be applied against
future capital gains, if any. If not applied, the carryforwards will expire as
follows:
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
CALIFORNIA PERFORMANCE CALIFORNIA INVESTMENT SELECT QUALITY
VALUE PLUS OPPORTUNITY QUALITY QUALITY INCOME
(NCA) (NCP) (NCO) (NQC) (NVC) (NUC)
------------------------------------------------------------------------------------------------------------------------------------
Expiration: February 28, 2017 $ 4,394,352 $ 399,209 $ 442,824 $ 518,345 $ 2,317,690 $ 1,333,051
====================================================================================================================================
The Funds have elected to defer net realized losses from investments incurred
from November 1, 2008 through February 28, 2009, the Funds' tax year end,
("post-October losses") in accordance with federal income tax regulations.
Post-October losses are treated as having arisen on the first day of the
following fiscal year:
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
CALIFORNIA PERFORMANCE CALIFORNIA INVESTMENT SELECT QUALITY
VALUE PLUS OPPORTUNITY QUALITY QUALITY INCOME
(NCA) (NCP) (NCO) (NQC) (NVC) (NUC)
------------------------------------------------------------------------------------------------------------------------------------
Post-October capital losses $ 1,269,016 $ 2,345,602 $ 838,400 $ 3,307,592 $ 55,175 $ 1,923,603
====================================================================================================================================
6. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Each Fund's management fee is separated into two components - a complex-level
component, based on the aggregate amount of all fund assets managed by the
Adviser, and a specific fund-level component, based only on the amount of assets
within each individual Fund, and for California Value (NCA) a gross interest
income component. This pricing structure enables Nuveen fund shareholders to
benefit from growth in the assets within each individual fund as well as from
growth in the amount of complex-wide assets managed by the Adviser.
California Value (NCA) pays an annual fund-level fee, payable monthly, of .15%
of the average daily net assets of the Fund, as well as 4.125% of the gross
interest income (excluding interest on bonds underlying a "self-deposited
inverse floater" trust that is attributed to the Fund over and above the net
interest earned on the inverse floater itself) of the Fund.
The annual fund-level fee, payable monthly, for each Fund (excluding California
Value (NCA)) is based upon the average daily net assets (including net assets
attributable to Preferred shares) of each Fund as follows:
AVERAGE DAILY NET ASSETS (INCLUDING NET
ASSETS ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For the next $3 billion .3875
For net assets over $5 billion .3750
================================================================================
The annual complex-level fee, payable monthly, which is additive to the
fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the
aggregate amount of total fund assets managed as stated in the following table.
As of February 28, 2009, the complex level fee rate was .2000%.
77
| Notes to FINANCIAL STATEMENTS (continued)
The complex-level fee schedule is as follows:
COMPLEX-LEVEL ASSET BREAKPOINT LEVEL (1) EFFECTIVE RATE AT BREAKPOINT LEVEL
--------------------------------------------------------------------------------
$55 billion .2000%
$56 billion .1996
$57 billion .1989
$60 billion .1961
$63 billion .1931
$66 billion .1900
$71 billion .1851
$76 billion .1806
$80 billion .1773
$91 billion .1691
$125 billion .1599
$200 billion .1505
$250 billion .1469
$300 billion .1445
================================================================================
(1) The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate daily managed assets of all Nuveen
funds, with such daily managed assets defined separately for each fund in
its management agreement, but which generally includes assets attributable
to preferred stock issued by or borrowings (including the issuance of
commercial paper or notes) by such fund, but excludes assets attributable
to investments in other Nuveen funds.
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Directors who are affiliated with the
Adviser or to its Officers, all of whom receive remuneration for their services
to the Funds from the Adviser or its affiliates. The Board of Directors has
adopted a deferred compensation plan for independent Directors that enables
Directors to elect to defer receipt of all or a portion of the annual
compensation they are entitled to receive from certain Nuveen advised funds.
Under the plan, deferred amounts are treated as though equal dollar amounts had
been invested in shares of select Nuveen advised funds.
7. NEW ACCOUNTING PRONOUNCEMENTS
Financial Accounting Standards Board Statement of Financial Accounting Standards
No. 161 (SFAS No. 161) In March 2008, the FASB issued SFAS No. 161, "Disclosures
about Derivative Instruments and Hedging Activities." This standard is intended
to enhance financial statement disclosures for derivative instruments and
hedging activities and enable investors to understand: a) how and why a fund
uses derivative instruments, b) how derivative instruments and related hedge
items are accounted for, and c) how derivative instruments and related hedge
items affect a fund's financial position, results of operations and cash flows.
SFAS No. 161 is effective for financial statements issued for fiscal years and
interim periods beginning after November 15, 2008. As of February 28, 2009,
management does not believe the adoption of SFAS No. 161 will impact the
financial statement amounts; however, additional footnote disclosures may be
required about the use of derivative instruments and hedging items.
78
8. SUBSEQUENT EVENTS
Distributions to Common Shareholders
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on April 1, 2009, to shareholders of record on
March 15, 2009, 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 $ .0380 $ .0600 $ .0615 $ .0620 $ .0655 $ .0655
====================================================================================================================================
79
| Financial HIGHLIGHTS
Selected data for a Common share outstanding throughout each period:
Investment Operations
------------------------------------------------------------------------------
Distributions Distributions
Beginning from Net from
Common Net Investment Capital
Share Net Realized/ Income to Gains to
Net Asset Investment Unrealized Preferred Preferred
Value Income Gain (Loss) Shareholders+ Shareholders+ Total
-----------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA VALUE (NCA)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2009(b) $ 9.70 $ .23 $ (.70) N/A N/A $ (.47)
Year Ended 8/31:
2008 9.87 .47 (.18) N/A N/A .29
2007 10.14 .45 (.23) N/A N/A .22
2006 10.33 .46 (.13) N/A N/A .33
2005 10.20 .47 .21 N/A N/A .68
2004 9.93 .48 .34 N/A N/A .82
CALIFORNIA PERFORMANCE PLUS (NCP)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2009(b) 14.19 .48 (1.45) (.12) (.03) (1.12)
Year Ended 8/31:
2008 14.77 .98 (.52) (.25) (.03) .18
2007 15.45 .96 (.60) (.26) (.02) .08
2006 15.79 .96 (.29) (.23) -- .44
2005 15.53 .97 .49 (.12) (.01) 1.33
2004 14.76 .99 .80 (.06) -- 1.73
===================================================================================================================================
Less Distributions
------------------------------------------
Net Ending
Investment Capital Common
Income to Gains to Share Ending
Common Common Net Asset Market
Shareholders Shareholders Total Value Value
--------------------------------------------------------------------------------------------------------------
CALIFORNIA VALUE (NCA)
--------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2009(b) $ (.23) $ (.13) $ (.36) $ 8.87 $ 8.39
Year Ended 8/31:
2008 (.44) (.02) (.46) 9.70 9.63
2007 (.46) (.03) (.49) 9.87 9.65
2006 (.46) (.06) (.52) 10.14 9.67
2005 (.47) (.08) (.55) 10.33 9.92
2004 (.48) (.07) (.55) 10.20 9.27
CALIFORNIA PERFORMANCE PLUS (NCP)
--------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2009(b) (.35) (.09) (.44) 12.63 10.87
Year Ended 8/31:
2008 (.69) (.07) (.76) 14.19 12.70
2007 (.71) (.05) (.76) 14.77 14.07
2006 (.78) -- (.78) 15.45 14.36
2005 (.90) (.17) (1.07) 15.79 14.52
2004 (.96) -- (.96) 15.53 14.26
==============================================================================================================
Preferred Shares at End of Period
----------------------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
-------------------------------------------------------------------------------------------------
CALIFORNIA VALUE (NCA)
-------------------------------------------------------------------------------------------------
Year Ended 2/28:
2009(b) $ N/A $ N/A $ N/A
Year Ended 8/31:
2008 N/A N/A N/A
2007 N/A N/A N/A
2006 N/A N/A N/A
2005 N/A N/A N/A
2004 N/A N/A N/A
CALIFORNIA PERFORMANCE PLUS (NCP)
-------------------------------------------------------------------------------------------------
Year Ended 2/28:
2009(b) 91,175 25,000 69,865
Year Ended 8/31:
2008 105,075 25,000 68,765
2007 106,000 25,000 70,157
2006 106,000 25,000 72,255
2005 106,000 25,000 73,276
2004 106,000 25,000 72,478
=================================================================================================
80
Ratios/Supplemental Data
-----------------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
Total Returns Before Credit
---------------------- --------------------------------------------
Based Ending
on Net
Based Common Assets
on Share Net Applicable Expenses Expenses Net
Market Asset to Common Including Excluding Investment
Value** Value** Shares (000) Interest++(a) Interest++(a) Income++
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA VALUE (NCA)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2009(b) (9.08)% (4.73)% $ 223,949 .72%* .70%* 5.30%*
Year Ended 8/31:
2008 4.70 2.94 244,985 .69 .65 4.71
2007 4.74 2.11 249,022 .65 .62 4.49
2006 2.85 3.34 255,868 .64 .64 4.51
2005 13.33 6.82 260,782 .63 .63 4.54
2004 8.02 8.40 257,550 .65 .65 4.70
CALIFORNIA PERFORMANCE PLUS (NCP)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2009(b) (10.58) (7.75) 163,623 1.40* 1.34* 7.72*
Year Ended 8/31:
2008 (4.41) 1.23 183,943 1.33 1.26 6.73
2007 3.21 .49 191,466 1.30 1.22 6.28
2006 4.42 2.97 200,359 1.23 1.23 6.28
2005 9.66 8.89 204,692 1.23 1.23 6.22
2004 9.65 12.00 201,307 1.26 1.26 6.48
====================================================================================================================================
Ratios/Supplemental Data
----------------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
After Credit***
------------------------------------------------
Expenses Expenses Net Portfolio
Including Excluding Investment Turnover
Interest++(a) Interest++(a) Income++ Rate
----------------------------------------------------------------------------------------------------------------
CALIFORNIA VALUE (NCA)
----------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2009(b) .72%* .70%* 5.30%* 12%
Year Ended 8/31:
2008 .69 .64 4.72 22
2007 .64 .61 4.51 8
2006 .63 .63 4.52 20
2005 .63 .63 4.54 4
2004 .65 .65 4.70 28
CALIFORNIA PERFORMANCE PLUS (NCP)
----------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2009(b) 1.38* 1.32* 7.74* 6
Year Ended 8/31:
2008 1.32 1.25 6.74 11
2007 1.28 1.20 6.30 18
2006 1.22 1.22 6.29 11
2005 1.22 1.22 6.23 5
2004 1.25 1.25 6.49 16
================================================================================================================
N/A Fund is not authorized to issue Preferred shares.
* Annualized.
** Total Return Based on Market Value is the combination of changes in the
market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return Based on Common Share Net Asset Value is the combination of
changes in Common share net asset value, reinvested dividend income at net
asset value and reinvested capital gains distributions at net asset value,
if any. The last dividend declared in the period, which is typically paid
on the first business day of the following month, is assumed to be
reinvested at the ending net asset value. The actual reinvest price for
the last dividend declared in the period may often be based on the Fund's
market price (and not its net asset value), and therefore may be different
from the price used in the calculation. Total returns are not annualized.
*** 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.
(a) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the six months ended February 28, 2009.
See accompanying notes to financial statements.
81
| Financial HIGHLIGHTS (continued)
Selected data for a Common share outstanding throughout each period:
Investment Operations
-----------------------------------------------------------------------------
Distributions Distributions
Beginning from Net from
Common Net Investment Capital
Share Net Realized/ Income to Gains to
Net Asset Investment Unrealized Preferred Preferred
Value Income Gain (Loss) Shareholders+ Shareholders+ Total
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA OPPORTUNITY (NCO)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2009(b) $ 14.32 $ .50 $ (1.36) $ (.12) $ (.02) $ (1.00)
Year Ended 8/31:
2008 14.90 1.01 (.52) (.26) (.03) .20
2007 15.67 .99 (.68) (.28) -- .03
2006 16.14 1.00 (.41) (.22) -- .37
2005 15.67 1.02 .50 (.12) -- 1.40
2004 14.77 1.03 .88 (.06) -- 1.85
CALIFORNIA INVESTMENT QUALITY (NQC)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2009(b) 14.34 .49 (1.50) (.11) (.02) (1.14)
Year Ended 8/31:
2008 14.81 1.00 (.47) (.27) --**** .26
2007 15.48 .97 (.59) (.26) (.02) .10
2006 15.86 .96 (.24) (.23) (.01) .48
2005 15.65 .98 .40 (.13) (.01) 1.24
2004 15.09 1.00 .70 (.06) (.01) 1.63
====================================================================================================================================
Less Distributions
-------------------------------------------
Net Ending
Investment Capital Common
Income to Gains to Share Ending
Common Common Net Asset Market
Shareholders Shareholders Total Value Value
--------------------------------------------------------------------------------------------------------------------------
CALIFORNIA OPPORTUNITY (NCO)
--------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2009(b) $ (.35) $ (.05) $ (.40) $ 12.92 $ 10.77
Year Ended 8/31:
2008 (.71) (.07) (.78) 14.32 12.85
2007 (.80) -- (.80) 14.90 14.36
2006 (.84) -- (.84) 15.67 15.36
2005 (.93) -- (.93) 16.14 15.61
2004 (.95) -- (.95) 15.67 14.45
CALIFORNIA INVESTMENT QUALITY (NQC)
--------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2009(b) (.36) (.19) (.55) 12.65 11.09
Year Ended 8/31:
2008 (.72) (.01) (.73) 14.34 13.08
2007 (.70) (.07) (.77) 14.81 13.74
2006 (.80) (.06) (.86) 15.48 14.63
2005 (.92) (.11) (1.03) 15.86 15.10
2004 (.97) (.10) (1.07) 15.65 14.80
==========================================================================================================================
Preferred Shares at End of Period
----------------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
--------------------------------------------------------------------------------------------------------
CALIFORNIA OPPORTUNITY (NCO)
--------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2009(b) $ 58,900 $ 25,000 $ 69,771
Year Ended 8/31:
2008 68,000 25,000 68,002
2007 68,000 25,000 69,753
2006 68,000 25,000 71,982
2005 68,000 25,000 73,377
2004 68,000 25,000 71,964
CALIFORNIA INVESTMENT QUALITY (NQC)
--------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2009(b) 94,925 25,000 70,256
Year Ended 8/31:
2008 108,650 25,000 69,816
2007 112,000 25,000 69,881
2006 112,000 25,000 71,929
2005 112,000 25,000 73,091
2004 112,000 25,000 72,435
========================================================================================================
82
Ratios/Supplemental Data
----------------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
Total Returns Before Credit
--------------------- ----------------------------------------------
Based Ending
on Net
Based Common Assets
on Share Net Applicable Expenses Expenses Net
Market Asset to Common Including Excluding Investment
Value** Value** Shares (000) Interest++(a) Interest++(a) Income++
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA OPPORTUNITY (NCO)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2009(b) (12.83)% (6.85)% $ 105,482 1.48%* 1.44%* 8.00%*
Year Ended 8/31:
2008 (5.15) 1.35 116,964 1.36 1.28 6.84
2007 (1.62) .07 121,728 1.31 1.26 6.37
2006 4.02 2.47 127,792 1.26 1.26 6.43
2005 15.00 9.19 131,587 1.25 1.25 6.42
2004 10.63 12.86 127,743 1.28 1.28 6.72
CALIFORNIA INVESTMENT QUALITY (NQC)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2009(b) (10.59) (7.70) 171,836 1.47* 1.30* 7.87*
Year Ended 8/31:
2008 .53 1.78 194,772 1.39 1.24 6.77
2007 (1.03) .57 201,067 1.34 1.22 6.32
2006 2.73 3.21 210,242 1.22 1.22 6.28
2005 9.33 8.18 215,446 1.21 1.21 6.24
2004 8.94 11.11 212,509 1.22 1.22 6.48
====================================================================================================================================
Ratios/Supplemental Data
-------------------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
After Credit***
--------------------------------------------------
Expenses Expenses Net Portfolio
Including Excluding Investment Turnover
Interest++(a) Interest++(a) Income++ Rate
--------------------------------------------------------------------------------------------------------------------
CALIFORNIA OPPORTUNITY (NCO)
--------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2009(b) 1.46%* 1.42%* 8.02%* 4%
Year Ended 8/31:
2008 1.35 1.27 6.85 8
2007 1.29 1.24 6.39 10
2006 1.24 1.24 6.45 18
2005 1.25 1.25 6.43 7
2004 1.28 1.28 6.73 13
CALIFORNIA INVESTMENT QUALITY (NQC)
--------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2009(b) 1.46* 1.28* 7.88* 6
Year Ended 8/31:
2008 1.38 1.24 6.78 15
2007 1.32 1.20 6.33 12
2006 1.21 1.21 6.29 11
2005 1.20 1.20 6.25 5
2004 1.22 1.22 6.49 20
====================================================================================================================
* Annualized.
** Total Return Based on Market Value is the combination of changes in the
market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return Based on Common Share Net Asset Value is the combination of
changes in Common share net asset value, reinvested dividend income at net
asset value and reinvested capital gains distributions at net asset value,
if any. The last dividend declared in the period, which is typically paid
on the first business day of the following month, is assumed to be
reinvested at the ending net asset value. The actual reinvest price for
the last dividend declared in the period may often be based on the Fund's
market price (and not its net asset value), and therefore may be different
from the price used in the calculation. Total returns are not annualized.
*** After custodian fee credit, where applicable.
**** Rounds to less than $.01 per share.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable
to Preferred shares.
(a) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the six months ended February 28, 2009.
See accompanying notes to financial statements.
83
| Financial HIGHLIGHTS (continued)
Selected data for a Common share outstanding throughout each period:
Investment Operations
---------------------------------------------------------------------------
Distributions Distributions
Beginning from Net from
Common Net Investment Capital
Share Net Realized/ Income to Gains to
Net Asset Investment Unrealized Preferred Preferred
Value Income Gain (Loss) Shareholders+ Shareholders+ Total
-----------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA SELECT QUALITY (NVC)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2009(b) $ 14.31 $ .50 $ (1.41) $ (.11) $ (.03) $ (1.05)
Year Ended 8/31:
2008 14.75 1.01 (.42) (.26) (.02) .31
2007 15.49 .98 (.64) (.27) (.01) .06
2006 15.98 .99 (.27) (.22) (.02) .48
2005 15.63 1.02 .53 (.13) (.01) 1.41
2004 14.93 1.04 .77 (.06) (.01) 1.74
CALIFORNIA QUALITY INCOME (NUC)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2009(b) 14.73 .52 (1.28) (.12) (.03) (.91)
Year Ended 8/31:
2008 14.93 1.04 (.23) (.29) -- .52
2007 15.60 1.01 (.59) (.28) (.01) .13
2006 16.03 1.02 (.35) (.23) --**** .44
2005 15.49 1.04 .69 (.13) (.01) 1.59
2004 14.85 1.05 .73 (.07) --**** 1.71
===================================================================================================================================
Less Distributions
-------------------------------------------
Net Ending
Investment Capital Common
Income to Gains to Share Ending
Common Common Net Asset Market
Shareholders Shareholders Total Value Value
-----------------------------------------------------------------------------------------------------------------------
CALIFORNIA SELECT QUALITY (NVC)
-----------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2009(b) $ (.36) $ (.18) $ (.54) $ 12.72 $ 10.78
Year Ended 8/31:
2008 (.70) (.05) (.75) 14.31 12.88
2007 (.75) (.05) (.80) 14.75 13.97
2006 (.85) (.12) (.97) 15.49 15.25
2005 (.96) (.10) (1.06) 15.98 15.69
2004 (.97) (.07) (1.04) 15.63 14.81
CALIFORNIA QUALITY INCOME (NUC)
-----------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2009(b) (.37) (.16) (.53) 13.29 11.21
Year Ended 8/31:
2008 (.72) -- (.72) 14.73 13.08
2007 (.77) (.03) (.80) 14.93 14.08
2006 (.84) (.03) (.87) 15.60 15.28
2005 (.97) (.08) (1.05) 16.03 15.73
2004 (1.02) (.05) (1.07) 15.49 15.00
-----------------------------------------------------------------------------------------------------------------------
Preferred Shares at End of Period
-----------------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
----------------------------------------------------------------------------------------------------------
CALIFORNIA SELECT QUALITY (NVC)
----------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2009(b) $ 164,150 $ 25,000 $ 69,779
Year Ended 8/31:
2008 176,375 25,000 71,905
2007 192,000 25,000 69,414
2006 192,000 25,000 71,632
2005 192,000 25,000 73,058
2004 192,000 25,000 71,997
CALIFORNIA QUALITY INCOME (NUC)
----------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2009(b) 165,025 25,000 69,292
Year Ended 8/31:
2008 176,900 25,000 70,839
2007 185,000 25,000 69,427
2006 185,000 25,000 71,364
2005 185,000 25,000 72,669
2004 185,000 25,000 71,064
==========================================================================================================
84
Ratios/Supplemental Data
-------------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
Total Returns Before Credit
-------------------------- ---------------------------------------------
Based Ending
on Net
Based Common Assets
on Share Net Applicable Expenses Expenses Net
Market Asset to Common Including Excluding Investment
Value** Value** Shares (000) Interest++(a) Interest++(a) Income++
-----------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA SELECT QUALITY (NVC)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2009(b) (11.80)% (7.09)% $ 294,019 1.39%* 1.28%* 8.08%*
Year Ended 8/31:
2008 (2.52) 2.07 330,915 1.32 1.22 6.90
2007 (3.40) .29 341,102 1.28 1.19 6.36
2006 3.63 3.21 358,131 1.20 1.20 6.38
2005 13.70 9.33 369,087 1.19 1.19 6.44
2004 12.38 11.97 360,938 1.21 1.21 6.78
CALIFORNIA QUALITY INCOME (NUC)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2009(b) (9.94) (5.94) 292,373 1.37* 1.27* 8.00*
Year Ended 8/31:
2008 (2.12) 3.51 324,354 1.33 1.23 6.93
2007 (2.92) .74 328,756 1.28 1.20 6.51
2006 2.90 2.96 343,096 1.21 1.21 6.54
2005 12.30 10.57 352,752 1.20 1.20 6.62
2004 9.67 11.76 340,873 1.22 1.22 6.89
-----------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
After Credit***
------------------------------------------------
Expenses Expenses Net Portfolio
Including Excluding Investment Turnover
Interest++(a) Interest++(a) Income++ Rate
------------------------------------------------------------------------------------------------------------------
CALIFORNIA SELECT QUALITY (NVC)
------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2009(b) 1.37%* 1.25%* 8.10%* 6%
Year Ended 8/31:
2008 1.31 1.21 6.91 13
2007 1.26 1.17 6.37 16
2006 1.19 1.19 6.39 16
2005 1.18 1.18 6.44 8
2004 1.20 1.20 6.78 14
CALIFORNIA QUALITY INCOME (NUC)
------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2009(b) 1.35* 1.25* 8.02* 6
Year Ended 8/31:
2008 1.32 1.22 6.94 10
2007 1.27 1.18 6.53 16
2006 1.20 1.20 6.55 12
2005 1.20 1.20 6.63 6
2004 1.21 1.21 6.89 16
==================================================================================================================
* Annualized.
** Total Return Based on Market Value is the combination of changes in the
market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return Based on Common Share Net Asset Value is the combination of
changes in Common share net asset value, reinvested dividend income at net
asset value and reinvested capital gains distributions at net asset value,
if any. The last dividend declared in the period, which is typically paid
on the first business day of the following month, is assumed to be
reinvested at the ending net asset value. The actual reinvest price for
the last dividend declared in the period may often be based on the Fund's
market price (and not its net asset value), and therefore may be different
from the price used in the calculation. Total returns are not annualized.
*** After custodian fee credit, where applicable.
**** Rounds to less than $.01 per share.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable
to Preferred shares.
(a) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the six months ended February 28, 2009.
See accompanying notes to financial statements.
85
Board Members & Officers
The management of the Funds, including general supervision of the duties
performed for the Funds by the Adviser, is the responsibility of the Board
Members of the Funds. The number of board members of the Fund is currently set
at nine. None of the board members who are not "interested" persons of the Funds
(referred to herein as "independent board members") has ever been a director or
employee of, or consultant to, Nuveen or its affiliates. The names and business
addresses of the board members and officers of the Funds, their principal
occupations and other affiliations during the past five years, the number of
portfolios each oversees and other directorships they hold are set forth below.
NUMBER PRINCIPAL
YEAR FIRST OF PORTFOLIOS OCCUPATION(S)
NAME, ELECTED OR IN FUND COMPLEX INCLUDING OTHER
BIRTHDATE POSITION(S) HELD APPOINTED OVERSEEN BY DIRECTORSHIPS
& ADDRESS WITH THE FUNDS AND TERM(1) BOARD MEMBER DURING PAST 5 YEARS
------------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT BOARD MEMBERS:
o ROBERT P. BREMNER Private Investor and Management
8/22/40 Chairman of Consultant; Treasurer and Director,
333 W. Wacker Drive the Board 1997 193 Humanities Council of Washington D.C.
Chicago, IL 60606 and Board member
o JACK B. EVANS President, The Hall-Perrine Foundation, a
10/22/48 private philanthropic corporation (since
333 W. Wacker Drive Board member 1999 193 1996); Director and Vice Chairman, United
Chicago, IL 60606 Fire Group, a publicly held company;
Member of the Board of Regents for the
State of Iowa University System; Director,
Gazette Companies; Life Trustee of Coe
College and Iowa College Foundation;
Member of the Advisory Council of the
Department of Finance in the Tippie
College of Business, University of Iowa;
formerly, Director, Alliant Energy;
formerly, Director, Federal Reserve Bank
of Chicago; formerly, President and Chief
Operating Officer, SCI Financial Group,
Inc., a regional financial services firm.
o WILLIAM C. HUNTER Dean, Tippie College of Business,
3/6/48 University of Iowa (since July 2006);
333 W. Wacker Drive Board member 2004 193 formerly, Dean and Distinguished Professor
Chicago, IL 60606 of Finance, School of Business at the
University of Connecticut (2003-2006);
previously, Senior Vice President and
Director of Research at the Federal
Reserve Bank of Chicago (1995-2003);
Director (since 2004) of Xerox
Corporation; Director (since 2005), Beta
Gamma Sigma International Honor Society;
Director, SS&C Technologies, Inc. (May
2005-October 2005); formerly Director
(1997-2007), Credit Research Center at
Georgetown University.
o DAVID J. KUNDERT Director, Northwestern Mutual Wealth
10/28/42 Management Company; Retired (since 2004)
333 W. Wacker Drive Board member 2005 193 as Chairman, JPMorgan Fleming Asset
Chicago, IL 60606 Management, President and CEO, Banc One
Investment Advisors Corporation, and
President, One Group Mutual Funds; prior
thereto, Executive Vice President, Banc
One Corporation and Chairman and CEO, Banc
One Investment Management Group; Member,
Board of Regents, Luther College; member
of the Wisconsin Bar Association; member
of Board of Directors, Friends of Boerner
Botanical Gardens; member of Investment
Committee, Greater Milwaukee Foundation.
o WILLIAM J. SCHNEIDER Chairman of Miller-Valentine Partners
9/24/44 Ltd., a real estate investment company;
333 W. Wacker Drive Board member 1997 193 Senior Partner and Chief Operating Officer
Chicago, IL 60606 (retired, 2004) of Miller-Valentine Group;
Member, University of Dayton Business
School Advisory Council; member, Dayton
Philharmonic Orchestra Board; formerly,
member, Business Advisory Council,
Cleveland Federal Reserve Bank; formerly,
Director, Dayton Development Coalition.
86
NUMBER PRINCIPAL
YEAR FIRST OF PORTFOLIOS OCCUPATION(S)
NAME, ELECTED OR IN FUND COMPLEX INCLUDING OTHER
BIRTHDATE POSITION(S) HELD APPOINTED OVERSEEN BY DIRECTORSHIPS
& ADDRESS WITH THE FUNDS AND TERM(1) BOARD MEMBER DURING PAST 5 YEARS
------------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT BOARD MEMBERS:
o JUDITH M. STOCKDALE Executive Director, Gaylord and Dorothy
12/29/47 Donnelley Foundation (since 1994); prior
333 W. Wacker Drive Board member 1997 193 thereto, Executive Director, Great Lakes
Chicago, IL 60606 Protection Fund (from 1990 to 1994).
o CAROLE E. STONE Director, Chicago Board Options Exchange
6/28/47 (since 2006); Commissioner, New York State
333 W. Wacker Drive Board member 2007 193 Commission on Public Authority Reform
Chicago, IL 60606 (since 2005); formerly, Chair New York
Racing Association Oversight Board
(2005-2007); formerly, Director, New York
State Division of the Budget (2000-2004),
Chair, Public Authorities Control Board
(2000-2004) and Director, Local Government
Assistance Corporation (2000-2004).
o TERENCE J. TOTH Director, Legal & General Investment
9/29/59 Management America, Inc. (since 2008);
333 W. Wacker Drive Board Member 2008 193 Managing Partner, Musso Capital Management
Chicago, IL 60606 (since 2008); Private Investor (since
2007); CEO and President, Northern Trust
Investments (2004-2007); Executive Vice
President, Quantitative Management &
Securities Lending (2004-2007); prior
thereto, various positions with Northern
Trust Company (since 1994); Member:
Goodman Theatre Board (Since 2004);
Chicago Fellowship Boards (since 2005),
University of Illinois Leadership Council
Board (since 2007) and Catalyst Schools of
Chicago Board (since 2008); formerly
Member: Northern Trust Mutual Funds Board
(2005-2007), Northern Trust Investments
Board (2004-2007), Northern Trust Japan
Board (2004-2007), Northern Trust
Securities Inc. Board (2003-2007) and
Northern Trust Hong Kong Board
(1997-2004).
INTERESTED BOARD MEMBER:
o JOHN P. AMBOIAN Chief Executive Officer (since July 2007)
6/14/61 and Director (since 1999) of Nuveen
333 W. Wacker Drive Board Member 2008 193 Investments, Inc.; Chief Executive Officer
Chicago, IL 60606 (since 2007) of Nuveen Asset Management,
Rittenhouse Asset Management, Nuveen
Investments Advisors, Inc. formerly,
President (1999-2004) of Nuveen Advisory
Corp. and Nuveen Institutional Advisory
Corp.(3)
87
NUMBER
OF PORTFOLIOS
NAME, YEAR FIRST IN FUND COMPLEX PRINCIPAL
BIRTHDATE POSITION(S) HELD ELECTED OR OVERSEEN BY OCCUPATION(S)
& ADDRESS WITH THE FUNDS APPOINTED(4) OFFICER DURING PAST 5 YEARS
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS:
o GIFFORD R. ZIMMERMAN Managing Director (since 2002), Assistant
9/9/56 Chief Secretary and Associate General Counsel of
333 W. Wacker Drive Administrative 1988 193 Nuveen Investments, LLC; Managing Director
Chicago, IL 60606 Officer (since 2002), Associate General Counsel
and Assistant Secretary, of Nuveen Asset
Management; Vice President and Assistant
Secretary of NWQ Investment Management
Company, LLC. (since 2002), Nuveen
Investments Advisers Inc. (since 2002),
Symphony Asset Management LLC, and NWQ
Investment Management Company, LLC (since
2003), Tradewinds Global Investors, LLC,
and Santa Barbara Asset Management, LLC
(since 2006), Nuveen HydePark Group LLC
and Nuveen Investment Solutions, Inc.
(since 2007); Managing Director (since
2004) and Assistant Secretary (since 1994)
of Nuveen Investments, Inc.; formerly,
Managing Director (2002-2004), General
Counsel (1998-2004) and Assistant
Secretary of Nuveen Advisory Corp. and
Nuveen Institutional Advisory Corp.(3);
Chartered Financial Analyst.
o WILLIAM ADAMS IV Executive Vice President of Nuveen
6/9/55 Investments, Inc.; Executive Vice
333 W. Wacker Drive President, U.S. Structured Products of
Chicago, IL 60606 Vice President 2007 121 Nuveen Investments, LLC, (since 1999),
prior thereto, Managing Director of
Structured Investments.
o MARK J.P. ANSON President and Executive Director of Nuveen
6/10/59 Investments, Inc. (since 2007); President
333 W. Wacker Drive Vice President 2009 193 of Nuveen Investments Institutional
Chicago, IL 60606 Services Group LLC (since 2007);
previously, Chief Executive Officer of the
British Telecom Pension Scheme (2006-2007)
and Chief Investment Officer of Calpers
(1999-2006); PhD, Chartered Financial
Analyst, Chartered Alternative Investment
Analyst, Certified Public Accountant,
Certified Management Accountant and
Certified Internal Auditor.
o CEDRIC H. ANTOSIEWICZ Managing Director, (since 2004)
1/11/62 previously, Vice President (1993-2004) of
333 W. Wacker Drive Vice President 2007 121 Nuveen Investments, LLC.
Chicago, IL 60606
o NIZIDA ARRIAGA Vice President of Nuveen Investments, LLC
6/1/68 (since 2007); previously, Portfolio
333 W. Wacker Drive Vice President 2009 193 Manager, Allstate Investments, LLC
Chicago, IL 60606 (1996-2006); Chartered Financial Analyst.
o MICHAEL T. ATKINSON Vice President (since 2002) of Nuveen
2/3/66 Vice President Investments, LLC.; Vice President of
333 W. Wacker Drive and Assistant 2000 193 Nuveen Asset Management (since 2005).
Chicago, IL 60606 Secretary
o MARGO L. COOK Executive Vice President (since Oct 2008)
4/11/64 of Nuveen Investments, Inc.; previously,
333 W. Wacker Drive Vice President 2009 193 Head of Institutional Asset Management
Chicago, IL 60606 (2007-2008) of Bear Stearns Asset
Management; Head of Institutional Asset
Mgt (1986-2007) of Bank of NY Mellon;
Chartered Financial Analyst.
o LORNA C. FERGUSON Managing Director (since 2004), formerly,
10/24/45 Vice President of Nuveen Investments, LLC;
333 W. Wacker Drive Vice President 1998 193 Managing Director (since 2005) of Nuveen
Chicago, IL 60606 Asset Management; Managing Director
(2004-2005), formerly, Vice President
(1998-2004) of Nuveen Advisory Corp. and
Nuveen Institutional Advisory Corp.(3)
88
NUMBER
OF PORTFOLIOS
NAME, YEAR FIRST IN FUND COMPLEX PRINCIPAL
BIRTHDATE POSITION(S) HELD ELECTED OR OVERSEEN BY OCCUPATION(S)
& ADDRESS WITH THE FUNDS APPOINTED(4) OFFICER DURING PAST 5 YEARS
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS:
o STEPHEN D. FOY Vice President (since 1993) and Funds
5/31/54 Vice President Controller (since 1998) of Nuveen
333 W. Wacker Drive and Controller 1998 193 Investments, LLC; Vice President (since
Chicago, IL 60606 2005) of Nuveen Asset Management;
Certified Public Accountant.
o WILLIAM T. HUFFMAN Chief Operating Officer, Municipal Fixed
5/7/69 Income (since 2008) of Nuveen Asset
333 W. Wacker Drive Vice President 2009 193 Management; previously, Chairman,
Chicago, IL 60606 President and Chief Executive Officer
(2002 - 2007) of Northern Trust Global
Advisors, Inc. and Chief Executive Officer
(2007) of Northern Trust Global
Investments Limited; CPA.
o WALTER M. KELLY Senior Vice President (since 2008), Vice
2/24/70 Chief Compliance President (2006-2008) formerly, Assistant
333 W. Wacker Drive Officer and 2003 193 Vice President and Assistant General
Chicago, IL 60606 Vice President Counsel (2003-2006) of Nuveen Investments,
LLC; Vice President (since 2006) and
Assistant Secretary (since 2008) of Nuveen
Asset Management.
o DAVID J. LAMB Senior Vice President (since 2009),
3/22/63 formerly Vice President (2000-2009) of
333 W. Wacker Drive Vice President 2000 193 Nuveen Investments, LLC; Vice President of
Chicago, IL 60606 Nuveen Asset Management (since 2005);
Certified Public Accountant.
0 TINA M. LAZAR Senior Vice President (since 2009),
8/27/61 formerly, Vice President of Nuveen
333 W. Wacker Drive Vice President 2002 193 Investments, LLC (1999-2009); Vice
Chicago, IL 60606 President of Nuveen Asset Management
(since 2005).
o LARRY W. MARTIN Vice President, Assistant Secretary and
7/27/51 Vice President Assistant General Counsel of Nuveen
333 W. Wacker Drive and Assistant 1988 193 Investments, LLC; Vice President (since
Chicago, IL 60606 Secretary 2005) and Assistant Secretary of Nuveen
Investments, Inc.; Vice President (since
2005) and Assistant Secretary (since 1997)
of Nuveen Asset Management; Vice President
and Assistant Secretary of Nuveen
Investments Advisers Inc. (since 2002);
NWQ Investment Management Company, LLC
(since 2002), Symphony Asset Management
LLC (since 2003), Tradewinds Global
Investors, LLC, Santa Barbara Asset
Management LLC (since 2006) and of Nuveen
HydePark Group, LLC and Nuveen Investment
Solutions, Inc. (since 2007); formerly,
Vice President and Assistant Secretary of
Nuveen Advisory Corp. and Nuveen
Institutional Advisory Corp.(3)
o KEVIN J. MCCARTHY Managing Director (since 2008), formerly,
3/26/66 Vice President Vice President (2007-2008), Nuveen
333 W. Wacker Drive and Secretary 2007 193 Investments, LLC; Vice President, and
Chicago, IL 60606 Assistant Secretary, Nuveen Asset
Management, Rittenhouse Asset Management,
Inc., Nuveen Investment Advisers Inc.,
Nuveen Investment Institutional Services
Group LLC, NWQ Investment Management
Company, LLC, Tradewinds Global Investors
LLC, NWQ Holdings, LLC, Symphony Asset
Management LLC, Santa Barbara Asset
Management LLC, Nuveen HydePark Group, LLC
and Nuveen Investment Solutions, Inc.
(since 2007); prior thereto, Partner,
Bell, Boyd & Lloyd LLP (1997-2007).
89
NUMBER
OF PORTFOLIOS
NAME, YEAR FIRST IN FUND COMPLEX PRINCIPAL
BIRTHDATE POSITION(S) HELD ELECTED OR OVERSEEN BY OCCUPATION(S)
& ADDRESS WITH THE FUNDS APPOINTED(4) OFFICER DURING PAST 5 YEARS
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS:
o JOHN V. MILLER Managing Director (since 2007), formerly,
4/10/67 Vice President (2002-2007) of Nuveen Asset
333 W. Wacker Drive Vice President 2007 193 Management and Nuveen Investments, LLC;
Chicago, IL 60606 Chartered Financial Analyst.
o GREGORY MINO Vice President of Nuveen Investments, LLC
1/4/71 (since 2008); previously, Director
333 W. Wacker Drive Vice President 2009 193 (2004-2007) and Executive Director
Chicago, IL 60606 (2007-2008) of UBS Global Asset
Management; previously, Vice President
(2000-2003) and Director (2003-2004) of
Merrill Lynch Investment Managers;
Chartered Financial Analyst.
o CHRISTOPHER M. ROHRBACHER Vice President, Nuveen Investments, LLC
8/1/71 Vice President (since 2008); Vice President and Assistant
333 W. Wacker Drive and Assistant 2008 193 Secretary, Nuveen Asset Management (since
Chicago, IL 60606 Secretary 2008); prior thereto, Associate, Skadden,
Arps, Slate Meagher & Flom LLP
(2002-2008).
o JAMES F. RUANE Vice President, Nuveen Investments, LLC
7/3/62 Vice President (since 2007); prior thereto, Partner,
333 W. Wacker Drive and Assistant 2007 193 Deloitte & Touche USA LLP (2005-2007),
Chicago, IL 60606 Secretary formerly, senior tax manager (2002-2005);
Certified Public Accountant.
o MARK L. WINGET Vice President, Nuveen Investments, LLC
12/21/68 Vice President (since 2008); Vice President and Assistant
333 W. Wacker Drive and Assistant 2008 193 Secretary, Nuveen Asset Management (since
Chicago, IL 60606 Secretary 2008); prior thereto, Counsel, Vedder
Price P.C. (1997-2007).
(1) Board Members serve a one year term to serve until the next annual meeting
or until their successors shall have been duly elected and qualified. The
first year elected or appointed represents the year in which the board
member was first elected or appointed to any fund in the Nuveen Complex.
(2) Mr. Amboian is an interested trustee because of his position with Nuveen
Investments, Inc. and certain of its subsidiaries, which are affiliates of
the Nuveen Funds.
(3) Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp. were
reorganized into Nuveen Asset Management, effective January 1, 2005.
(4) Officers serve one year terms through July of each year. The year first
elected or appointed represents the year in which the Officer was first
elected or appointed to any fund in the Nuveen Complex.
90
Reinvest Automatically EASILY and CONVENIENTLY
NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET UP YOUR
REINVESTMENT ACCOUNT.
NUVEEN CLOSED-END FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End Fund allows you to conveniently reinvest dividends and/or
capital gains distributions in additional Fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
greater of the net asset value or 95% of the then-current market price. If the
shares are trading at less than net asset value, shares for your account will be
purchased on the open market. If the Plan Agent begins purchasing Fund shares on
the open market while shares are trading below net asset value, but the Fund's
shares subsequently trade at or above their net asset value before the Plan
Agent is able to complete its purchases, the Plan Agent may cease open-market
purchases and may invest the uninvested portion of the distribution in
newly-issued Fund shares at a price equal to the greater of the shares' net
asset value or 95% of the shares' market value on the last business day
immediately prior to the purchase date. Dividends and distributions received to
purchase shares in the open market will normally be invested shortly after the
dividend payment date. No interest will be paid on dividends and distributions
awaiting reinvestment. Because the market price of the shares may increase
before purchases are completed, the average purchase price per share may exceed
the market price at the time of valuation, resulting in the acquisition of fewer
shares than if the dividend or distribution had been paid in shares issued by
the Fund. A pro rata portion of any applicable brokerage commissions on open
market purchases will be paid by Plan participants. These commissions usually
will be lower than those charged on individual transactions.
91
FLEXIBLE
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
92
NOTES
93
Glossary of TERMS USED in this REPORT
o AUCTION RATE BOND: An auction rate bond is a security whose interest
payments are adjusted periodically through an auction process, which
process typically also serves as a means for buying and selling the bond.
Auctions that fail to attract enough buyers for all the shares offered for
sale are deemed to have "failed", with current holders receiving a
formula-based interest rate until the next scheduled auction.
o AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time
period. It expresses the return that would have been necessary each year
to equal the investment's actual cumulative performance (including change
in common share NAV or market price and reinvested dividends and capital
gains distributions, if any) over the time period being considered.
o AVERAGE EFFECTIVE MATURITY: The average of the number of years to maturity
of the bonds in a Fund's portfolio, computed by weighting each bond's time
to maturity (the date the security comes due) by the market value of the
security. This figure does not account for the likelihood of prepayments
or the exercise of call provisions unless an escrow account has been
established to redeem the bond before maturity. The market value weighting
for an investment in an inverse floating rate security is the value of the
portfolio's residual interest in the inverse floating rate trust, and does
not include the value of the floating rate securities issued by the trust.
o INVERSE FLOATERS: Inverse floating rate securities are created by
depositing a municipal bond, typically with a fixed interest rate, into a
special purpose trust created by a broker-dealer. This trust, in turn, (a)
issues floating rate certificates typically paying short-term tax-exempt
interest rates to third parties in amounts equal to some fraction of the
deposited bond's par amount or market value, and (b) issues an inverse
floating rate certificate (sometimes referred to as an "inverse floater")
to an investor (such as a Fund) interested in gaining investment exposure
to a long-term municipal bond. The income received by the holder of the
inverse floater varies inversely with the short-term rate paid to the
floating rate certificates' holders, and in most circumstances the holder
of the inverse floater bears substantially all of the underlying bond's
downside investment risk. The holder of the inverse floater typically also
benefits disproportionately from any potential appreciation of the
underlying bond's value. Hence, an inverse floater essentially represents
an investment in the underlying bond on a leveraged basis.
o LEVERAGE-ADJUSTED DURATION: Duration is a measure of the expected period
over which a bond's principal and interest will be paid, and consequently
is a measure of the sensitivity of a bond's or bond Fund's value to
changes when market interest rates change. Generally, the longer a bond's
or Fund's duration, the more the price of the bond or Fund will change as
interest rates change. Leverage-adjusted duration takes into account the
leveraging process for a Fund and therefore is longer than the duration of
the Fund's portfolio of bonds.
o MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An
investment's current annualized dividend divided by its current market
price.
o NET ASSET VALUE (NAV): A Fund's NAV per common share is calculated by
subtracting the liabilities of the Fund (including any Preferred shares
issued in order to leverage the Fund) from its total assets and then
dividing the remainder by the number of common shares outstanding. Fund
NAVs are calculated at the end of each business day.
O TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable
investment to equal, on an after-tax basis, the yield of a municipal bond
investment.
o ZERO COUPON BOND: A zero coupon bond does not pay a regular interest
coupon to its holders during the life of the bond. Tax-exempt income to
the holder of the bond comes from accretion of the difference between the
original purchase price of the bond at issuance and the par value of the
bond at maturity and is effectively paid at maturity. The market prices of
zero coupon bonds generally are more volatile than the market prices of
bonds that pay interest periodically.
94
Other Useful INFORMATION
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
You may obtain (i) each Fund's quarterly portfolio of investments, (ii)
information regarding how the Funds voted proxies relating to portfolio
securities held during the twelve-month period ended June 30, 2008, and (iii) a
description of the policies and procedures that the Funds used to determine how
to vote proxies relating to portfolio securities without charge, upon request,
by calling Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website
at www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities
and Exchange Commission ("SEC"). The SEC may charge a copying fee for this
information. Visit the SEC on-line at http://www.sec.gov or in person at the
SEC's Public Reference Room in Washington, D.C. Call the SEC at (202) 942-8090
for room hours and operation. You may also request Fund information by sending
an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public
References Section at 100 F Street NE, Washington, D.C. 20549.
CEO CERTIFICATION DISCLOSURE
Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange
(NYSE) the annual CEO certification as required by Section 303A.12(a) of the
NYSE Listed Company Manual.
Each Fund has filed with the Securities and Exchange Commission the
certification of its Chief Executive Officer and Chief Financial Officer
required by Section 302 of the Sarbanes-Oxley Act.
COMMON AND PREFERRED SHARE INFORMATION
Each Fund intends to repurchase and/or redeem shares of its own common or
preferred stock in the future at such times and in such amounts as is deemed
advisable. During the period covered by this report, the Funds repurchased
and/or redeemed shares of their common and/or preferred stock as shown in the
accompanying table:
COMMON SHARES PREFERRED SHARED
FUND REPURCHASED REDEEMED
NCP 14,500 350
NCO 6,600 364
NVC 20,200 205
NUC 17,900 --
Any future repurchases and/or redemptions will be reported to shareholders in
the next annual or semi-annual report.
BOARD OF DIRECTORS
John P. Amboian
Robert P. Bremner
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Judith M. Stockdale
Carole E. Stone
Terence J. Toth
FUND MANAGER
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust Company
Boston, MA
TRANSFER AGENT AND SHAREHOLDER SERVICES
State Street Bank & Trust Company
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
Chicago, IL
95
Nuveen Investments:
--------------------------------------------------------------------------------
SERVING INVESTORS FOR GENERATIONS
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
We offer many different investing solutions for our clients' different needs.
Nuveen Investments is a global investment management firm that seeks to help
secure the long-term goals of institutions and high net worth investors as well
as the consultants and financial advisors who serve them. Nuveen Investments
markets its growing range of specialized investment solutions under the
high-quality brands of HydePark, NWQ, Nuveen, Santa Barbara, Symphony,
Tradewinds and Winslow Capital. In total, the Company managed $119 billion of
assets on December 31, 2008.
Find out how we can help you reach your financial goals.
To learn more about the products and services Nuveen Investments offers, talk to
your financial advisor, or call us at (800) 257-8787. Please read the
information provided carefully before you invest. Be sure to obtain a
prospectus, where applicable. Investors should consider the investment objective
and policies, risk considerations, charges and expenses of the Fund carefully
before investing. The prospectus contains this and other information relevant to
an investment in the Fund. For a prospectus, please contact your securities
representative or Nuveen Investments, 333 W. Wacker Dr., Chicago, IL 60606.
Please read the prospectus carefully before you invest or send money.
Learn more about Nuveen Funds at: www.nuveen.com/cef
Share prices
Fund details
Daily financial news
Investor education
Interactive planning tools
EAN-A-0209D
ITEM 2. CODE OF ETHICS.
As of the end of the period covered by this report, the registrant has adopted a
code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller, or
persons performing similar functions. There were no amendments to or waivers
from the Code during the period covered by this report. The registrant has
posted the code of ethics on its website at www.nuveen.com/CEF/Info/Shareholder.
(To view the code, click on Fund Governance and then click on Code of Conduct.)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The registrant's Board of Directors or Trustees ("Board") determined that the
registrant has at least one "audit committee financial expert" (as defined in
Item 3 of Form N-CSR) serving on its Audit Committee. The registrant's audit
committee financial expert is Jack B. Evans, who is "independent" for purposes
of Item 3 of Form N-CSR.
Mr. Evans was formerly President and Chief Operating Officer of SCI Financial
Group, Inc., a full service registered broker-dealer and registered investment
adviser ("SCI"). As part of his role as President and Chief Operating Officer,
Mr. Evans actively supervised the Chief Financial Officer (the "CFO") and
actively supervised the CFO's preparation of financial statements and other
filings with various regulatory authorities. In such capacity, Mr. Evans was
actively involved in the preparation of SCI's financial statements and the
resolution of issues raised in connection therewith. Mr. Evans has also served
on the audit committee of various reporting companies. At such companies, Mr.
Evans was involved in the oversight of audits, audit plans, and the preparation
of financial statements. Mr. Evans also formerly chaired the audit committee of
the Federal Reserve Bank of Chicago.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Nuveen California Municipal Value Fund, Inc.
The following tables show the amount of fees that Ernst & Young LLP, the Fund's
auditor, billed to the Fund during the Fund's last two full fiscal years. For
engagements with Ernst & Young LLP the Audit Committee approved in advance all
audit services and non-audit services that Ernst & Young LLP provided to the
Fund, except for those non-audit services that were subject to the pre-approval
exception under Rule 2-01 of Regulation S-X (the "pre-approval exception"). The
pre-approval exception for services provided directly to the Fund waives the
pre-approval requirement for services other than audit, review or attest
services if: (A) the aggregate amount of all such services provided constitutes
no more than 5% of the total amount of revenues paid by the Fund to its
accountant during the fiscal year in which the services are provided; (B) the
Fund did not recognize the services as non-audit services at the time of the
engagement; and (C) the services are promptly brought to the Audit Committee's
attention, and the Committee (or its delegate) approves the services before the
audit is completed.
The Audit Committee has delegated certain pre-approval responsibilities to its
Chairman (or, in his absence, any other member of the Audit Committee).
SERVICES THAT THE FUND'S AUDITOR BILLED TO THE FUND
AUDIT FEES BILLED AUDIT-RELATED FEES TAX FEES ALL OTHER FEES
FISCAL YEAR ENDED TO FUND (1) BILLED TO FUND (2) BILLED TO FUND (3) BILLED TO FUND
------------------------------------------------------------------------------------------------------------------------------------
February 28, 2009(4) $ 14,994 $ 0 $ 0 $ 0
------------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------------------------
August 31, 2008 $ 14,840 $ 0 $ 0 $ 0
------------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------------------------
(1) "Audit Fees" are the aggregate fees billed for professional services for
the audit of the Fund's annual financial statements and services provided
in connection with statutory and regulatory filings or engagements.
(2) "Audit Related Fees" are the aggregate fees billed for assurance and
related services reasonably related to the performance of the audit or
review of financial statements and are not reported under "Audit Fees."
(3) "Tax Fees" are the aggregate fees billed for professional services for tax
advice, tax compliance, and tax planning.
(4) Fund changed fiscal year from August to February starting in 2009.
SERVICES THAT THE FUND'S AUDITOR BILLED TO THE
ADVISER AND AFFILIATED FUND SERVICE PROVIDERS
The following tables show the amount of fees billed by Ernst & Young LLP to
Nuveen Asset Management ("NAM" or the "Adviser"), and any entity controlling,
controlled by or under common control with NAM that provides ongoing services to
the Fund ("Affiliated Fund Service Provider"), for engagements directly related
to the Fund's operations and financial reporting, during the Fund's last two
full fiscal years.
The tables also show the percentage of fees subject to the pre-approval
exception. The pre-approval exception for services provided to the Adviser and
any Affiliated Fund Service Provider (other than audit, review or attest
services) waives the pre-approval requirement if: (A) the aggregate amount of
all such services provided constitutes no more than 5% of the total amount of
revenues paid to Ernst & Young LLP by the Fund, the Adviser and Affiliated Fund
Service Providers during the fiscal year in which the services are provided that
would have to be pre-approved by the Audit Committee; (B) the Fund did not
recognize the services as non-audit services at the time of the engagement; and
(C) the services are promptly brought to the Audit Committee's attention, and
the Committee (or its delegate) approves the services before the Fund's audit is
completed.
FISCAL YEAR ENDED AUDIT-RELATED FEES TAX FEES BILLED TO ALL OTHER FEES
BILLED TO ADVISER AND ADVISER AND BILLED TO ADVISER
AFFILIATED FUND AFFILIATED FUND AND AFFILIATED FUND
SERVICE PROVIDERS SERVICE PROVIDERS SERVICE PROVIDERS
--------------------------------------------------------------------------------------------------------------
February 28, 2009(1) $ 0 $ 0 $ 0
--------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
--------------------------------------------------------------------------------------------------------------
August 31, 2008 $ 0 $ 0 $ 0
--------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
--------------------------------------------------------------------------------------------------------------
(1) Fund changed fiscal year from August to February starting in 2009.
NON-AUDIT SERVICES
The following table shows the amount of fees that Ernst & Young LLP billed
during the Fund's last two full fiscal years for non-audit services. The Audit
Committee is required to pre-approve non-audit services that Ernst & Young LLP
provides to the Adviser and any Affiliated Fund Services Provider, if the
engagement related directly to the Fund's operations and financial reporting
(except for those subject to the pre-approval exception described above). The
Audit Committee requested and received information from Ernst & Young LLP about
any non-audit services that Ernst & Young LLP rendered during the Fund's last
fiscal year to the Adviser and any Affiliated Fund Service Provider. The
Committee considered this information in evaluating Ernst & Young LLP's
independence.
FISCAL YEAR ENDED TOTAL NON-AUDIT FEES
BILLED TO ADVISER AND
AFFILIATED FUND SERVICE TOTAL NON-AUDIT FEES
PROVIDERS (ENGAGEMENTS BILLED TO ADVISER AND
RELATED DIRECTLY TO THE AFFILIATED FUND SERVICE
TOTAL NON-AUDIT FEES OPERATIONS AND FINANCIAL PROVIDERS (ALL OTHER
BILLED TO FUND REPORTING OF THE FUND) ENGAGEMENTS) TOTAL
---------------------------------------------------------------------------------------------------------------------------
February 28, 2009(1) $ 0 $ 0 $ 0 $ 0
August 31, 2008 $ 0 $ 0 $ 0 $ 0
"Non-Audit Fees billed to Adviser" for both fiscal year ends represent "Tax
Fees" billed to Adviser in their respective amounts from the previous table.
(1) Fund changed fiscal year from August to February starting in 2009.
Audit Committee Pre-Approval Policies and Procedures. Generally, the Audit
Committee must approve (i) all non-audit services to be performed for the Fund
by the Fund's independent accountants and (ii) all audit and non-audit services
to be performed by the Fund's independent accountants for the Affiliated Fund
Service Providers with respect to operations and financial reporting of the
Fund. Regarding tax and research projects conducted by the independent
accountants for the Fund and Affiliated Fund Service Providers (with respect to
operations and financial reports of the Fund) such engagements will be (i)
pre-approved by the Audit Committee if they are expected to be for amounts
greater than $10,000; (ii) reported to the Audit Committee chairman for his
verbal approval prior to engagement if they are expected to be for amounts under
$10,000 but greater than $5,000; and (iii) reported to the Audit Committee at
the next Audit Committee meeting if they are expected to be for an amount under
$5,000.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
The registrant's Board has a separately designated Audit Committee established
in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934,
as amended (15 U.S.C. 78c(a)(58)(A)). The members of the audit committee are
Robert P. Bremner, Jack B. Evans, Terence J. Toth, William J. Schneider and
David J. Kundert.
ITEM 6. SCHEDULE OF INVESTMENTS.
See Portfolio of Investments in Item 1.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
The registrant invests its assets primarily in municipal bonds and cash
management securities. On rare occasions the registrant may acquire, directly or
through a special purpose vehicle, equity securities of a municipal bond issuer
whose bonds the registrant already owns when such bonds have deteriorated or are
expected shortly to deteriorate significantly in credit quality. The purpose of
acquiring equity securities generally will be to acquire control of the
municipal bond issuer and to seek to prevent the credit deterioration or
facilitate the liquidation or other workout of the distressed issuer's credit
problem. In the course of exercising control of a distressed municipal issuer,
NAM may pursue the registrant's interests in a variety of ways, which may entail
negotiating and executing consents, agreements and other arrangements, and
otherwise influencing the management of the issuer. NAM does not consider such
activities proxy voting for purposes of Rule 206(4)-6 under the 1940 Act, but
nevertheless provides reports to the registrant's Board on its control
activities on a quarterly basis.
In the rare event that a municipal issuer were to issue a proxy or that the
registrant were to receive a proxy issued by a cash management security, NAM
would either engage an independent third party to determine how the proxy should
be voted or vote the proxy with the consent, or based on the instructions, of
the registrant's Board or its representative. A member of NAM's legal department
would oversee the administration of the voting, and ensure that records were
maintained in accordance with Rule 206(4)-6, reports were filed with the SEC on
Form N-PX, and the results provided to the registrant's Board and made available
to shareholders as required by applicable rules.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
THE PORTFOLIO MANAGER
The following individual has primary responsibility for the day-to-day
implementation of the registrant's investment strategies:
NAME FUND
Scott R. Romans Nuveen California Municipal Value Fund, Inc.
Other Accounts Managed. In addition to managing the registrant, the portfolio
manager is also primarily responsible for the day-to-day portfolio management of
the following accounts:
TYPE OF ACCOUNT NUMBER OF
PORTFOLIO MANAGER MANAGED ACCOUNTS ASSETS*
--------------------------------------------------------------------------------
Scott R. Romans Registered Investment Company 28 $5.128 billion
Other Pooled Investment Vehicles 0 $0
Other Accounts 3 $.381 million
* Assets are as of February 28, 2009. None of the assets in these accounts
are subject to an advisory fee based on performance.
Compensation. Each portfolio manager's compensation consists of three basic
elements--base salary, cash bonus and long-term incentive compensation. The
compensation strategy is to annually compare overall compensation to the market
in order to create a compensation structure that is competitive and consistent
with similar financial services companies. As discussed below, several factors
are considered in determining each portfolio manager's total compensation. In
any year these factors may include, among others, the effectiveness of the
investment strategies recommended by the portfolio manager's investment team,
the investment performance of the accounts managed by the portfolio manager, and
the overall performance of Nuveen Investments, Inc. (the parent company of NAM).
Although investment performance is a factor in determining the portfolio
manager's compensation, it is not necessarily a decisive factor. The portfolio
manager's performance is evaluated in part by comparing the manager's
performance against a specified investment benchmark. This fund-specific
benchmark is a customized subset (limited to bonds in each Fund's specific state
and with certain maturity parameters) of the S&P/Investortools Municipal Bond
index, an index comprised of bonds held by managed municipal bond fund customers
of Standard & Poor's Securities Pricing, Inc. that are priced daily and whose
fund holdings aggregate at least $2 million. As of February 28, 2009, the
S&P/Investortools Municipal Bond index was comprised of 51,571 securities with
an aggregate current market value of $1,024 billion.
Base salary. Each portfolio manager is paid a base salary that is set at a level
determined by NAM in accordance with its overall compensation strategy discussed
above. NAM is not under any current contractual obligation to increase a
portfolio manager's base salary.
Cash bonus. Each portfolio manager is also eligible to receive an annual cash
bonus. The level of this bonus is based upon evaluations and determinations made
by each portfolio manager's supervisors, along with reviews submitted by his
peers. These reviews and evaluations often take into account a number of
factors, including the effectiveness of the investment strategies recommended to
the NAM's investment team, the performance of the accounts for which he serves
as portfolio manager relative to any benchmarks established for those accounts,
his effectiveness in communicating investment performance to stockholders and
their representatives, and his contribution to the NAM's investment process and
to the execution of investment strategies. The cash bonus component is also
impacted by the overall performance of Nuveen Investments, Inc. in achieving its
business objectives.
Long-term incentive compensation. In connection with the acquisition of Nuveen
Investments, Inc., by a group of investors led by Madison Dearborn Partners in
November 2007, certain employees, including portfolio managers, received profit
interests in Nuveen's parent. These profit interests entitle the holders to
participate in the appreciation in the value of Nuveen beyond the issue date and
vest over five to seven years, or earlier in the case of a liquidity event.
Material Conflicts of Interest. Each portfolio manager's simultaneous management
of the registrant and the other accounts noted above may present actual or
apparent conflicts of interest with respect to the allocation and aggregation of
securities orders placed on behalf of the registrant and the other account. NAM,
however, believes that such potential conflicts are mitigated by the fact that
the NAM has adopted several policies that address potential conflicts of
interest, including best execution and trade allocation policies that are
designed to ensure (1) that portfolio management is seeking the best price for
portfolio securities under the circumstances, (2) fair and equitable allocation
of investment opportunities among accounts over time and (3) compliance with
applicable regulatory requirements. All accounts are to be treated in a
non-preferential manner, such that allocations are not based upon account
performance, fee structure or preference of the portfolio manager. In addition,
NAM has adopted a Code of Conduct that sets forth policies regarding conflicts
of interest.
Beneficial Ownership of Securities. As of February 28, 2009, the portfolio
manager beneficially owned the following dollar range of equity securities
issued by the registrant and other Nuveen Funds managed by NAM's municipal
investment team.
DOLLAR
RANGE OF
EQUITY
SECURITIES
BENEFICIALLY
OWNED IN
THE
REMAINDER
DOLLAR OF NUVEEN
RANGE OF FUNDS
EQUITY MANAGED BY
SECURITIES NAM'S
BENEFICIALLY MUNICIPAL
NAME OF PORTFOLIO OWNED IN INVESTMENT
MANAGER FUND FUND TEAM
-------------------------------------------------------------------------------------------------------------------------
Scott R. Romans Nuveen California Municipal Value Fund, Inc. $0 $10,001--$50,000
PORTFOLIO MANAGER BIO:
Scott R. Romans, PhD, joined Nuveen Investments in 2000 as a senior analyst in
the education sector. In 2003, he was assigned management responsibility for
several closed- and open-ended municipal bond funds most of which are state
funds covering California and other western states. He has been Vice President
of NAM since 2004, Portfolio Manager since 2003, and was, formerly, Assistant
Vice President (2003-2004) and Senior Analyst (2000-2003). Currently, he manages
investments for 29 Nuveen-sponsored investment companies. He holds an
undergraduate degree from the University of Pennsylvania and an MA and PhD from
the University of Chicago.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrant's Board implemented after the registrant
last provided disclosure in response to this item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")
(17 CFR 240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter
of the period covered by this report that has materially affected, or
is reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable
because the code is posted on registrant's website at www.nuveen.com/CEF/Info/
Shareholder and there were no amendments during the period covered by this
report. (To view the code, click on Fund Governance and then Code of Conduct.)
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT
Attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons. Not applicable.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR
270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference. Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen California Municipal Value Fund, Inc.
-----------------------------------------------------------
By (Signature and Title) /s/ Kevin J. McCarthy
----------------------------------------------
Kevin J. McCarthy
Vice President and Secretary
Date: May 8, 2009
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Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title) /s/ Gifford R. Zimmerman
----------------------------------------------
Gifford R. Zimmerman
Chief Administrative Officer
(principal executive officer)
Date: May 8, 2009
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By (Signature and Title) /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: May 8, 2009
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