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