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.
------------------------------------------------------------------------------
(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: August 31
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Date of reporting period: August 31, 2004
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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, 2004
Nuveen Investments Municipal Closed-End Exchange-Traded Funds
NUVEEN CALIFORNIA MUNICIPAL VALUE FUND, INC.
NCA
NUVEEN CALIFORNIA PERFORMANCE PLUS MUNICIPAL FUND, INC.
NCP
NUVEEN CALIFORNIA MUNICIPAL MARKET OPPORTUNITY FUND, INC.
NCO
NUVEEN CALIFORNIA INVESTMENT QUALITY MUNICIPAL FUND, INC.
NQC
NUVEEN CALIFORNIA SELECT QUALITY MUNICIPAL FUND, INC.
NVC
NUVEEN CALIFORNIA QUALITY INCOME MUNICIPAL FUND, INC.
NUC
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Photo of: Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
Chairman's
LETTER TO SHAREHOLDERS
Once again, I am pleased to report that over the most recent reporting period
your Fund continued to provide you with monthly income free from both federal
and California state income taxes, as well as with an attractive total return.
For more specific information about the performance of your Fund, please see the
Portfolio Manager's Comments and Performance Overview sections of this report.
With long-term interest rates still near historic lows, many investors have
begun to wonder whether these interest rates will rise, and whether that makes
this the time to adjust their holdings of fixed-income investments. No one knows
what the future will bring, which is why we think a well-balanced portfolio that
is structured and carefully monitored with the help of an investment
professional is an important component in achieving your long-term financial
goals. A well-diversified portfolio may
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"OUR MISSION CONTINUES TO BE TO ASSIST YOU AND YOUR FINANCIAL ADVISOR BY
OFFERING THE INVESTMENT SERVICES AND PRODUCTS THAT CAN HELP YOU TO SECURE YOUR
FINANCIAL OBJECTIVES."
--------------------------------------------------------------------------------
actually help to reduce your overall investment risk, and we believe that a
municipal bond investment like your Nuveen California Fund can be an important
building block in a portfolio designed to perform well through a variety of
market conditions.
As in past reports, I'd also like to direct your attention to the inside front
cover, which explains the quick and easy process to begin receiving these Fund
reports 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.
At Nuveen Investments, our mission continues to be to assist you and your
financial advisor by offering the investment services and products that can help
you to secure your financial objectives. We are grateful that you have chosen us
as a partner as you pursue your financial goals, and we look forward to
continuing to earn your trust in the months and years ahead.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
October 15, 2004
Nuveen California Municipal Closed-End Exchange-Traded Funds
(NCA, NCP, NCO, NQC, NVC, NUC)
Portfolio Manager's
PERSPECTIVE
Portfolio manager Scott Romans discusses the market environment, key investment
strategies and the annual performance of the California Funds. Scott, who joined
Nuveen in 2000, has managed these six Funds since January 2003.
WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE ANNUAL
REPORTING PERIOD ENDED AUGUST 31, 2004?
Over the entire 12 months, the U.S. economy demonstrated evidence of improvement
in a number of key areas, although the recovery slowed somewhat in the last five
months of the period. After surging at the fastest pace in almost 20 years (7.4%
annualized) during the third quarter of 2003, the U.S. gross domestic product
(GDP) expanded at annualized rates of 4.2% in the fourth quarter of 2003 and
4.5% in the first quarter of 2004. However, during the second quarter of 2004
rising energy prices restrained consumer spending, which in turn impacted
economic momentum and GDP growth in the second quarter moderated to 3.3%
annualized.
Higher energy costs also fueled increased worries about the future rate of
inflation. While rises in consumer prices were relatively tame over this fiscal
year, the annualized rise of 3.7% in the Consumer Price Index for the eight
months ended August 2004 was running well ahead of the 1.9% increase for all of
2003. During the second quarter of 2004 in particular, inflation concerns,
combined with the general pace of economic recovery and continued geopolitical
uncertainty, caused heightened volatility in the longer-term fixed-income
markets.
This volatility can be seen in the yield of the Bond Buyer 25 Revenue Bond
Index, a widely followed long-term municipal bond index, over the course of this
fiscal year (September 1, 2003 through August 31, 2004). At the start of the
period, the index yield was 5.41%, still close to its mid-August 2003 peak of
5.50%. From there, the yield dropped steadily over the next seven months to
4.73% by mid-March 2004. As investors increasingly anticipated action by the
Federal Reserve in response to a series of improved employment reports, the
index yield began to climb again, rising more than 80 basis points over the next
12 weeks to 5.45%, before retreating to end August 2004 at 5.13%.
4
Between June and August 2004, the Fed moved twice to increase the short-term fed
funds rate by a total of 50 basis points in an attempt to promote a sustainable
economic recovery without increasing inflationary pressures. (On September 21,
following the close of this reporting period, the Fed added another 25 basis
points to its fed funds target rate, bringing it to 1.75%.) Historically,
long-term interest rates often have moved in the same direction when the Fed has
adjusted short-term rates up or down.
Municipal supply nationwide continued to be relatively strong over the entire
12-month reporting period, with $369.5 billion in new bonds coming to market.
Looking just at 2004, new issue supply reached $241 billion for the first eight
months, a decrease of 5% from January-August 2003's record $254 billion.
HOW ABOUT MARKET AND ECONOMIC CONDITIONS IN CALIFORNIA?
The biggest story in California over this 12-month period was voters' approval
of $15 billion in economic recovery bonds (ERBs) in March 2004 and the state's
subsequent issuance of $11 billion of ERBs in May and June. This essentially
resolved the cash flow crisis that was facing California on June 30 when the
state's fiscal year ended. While many observers believe work remains to address
the state's longer-term deficit problems, the ERBs improved the state's balance
sheet liquidity and, combined with California's steadily recovering economy, led
all three major credit rating agencies to upgrade the state's $33 billion of
outstanding general obligation debt. In May 2004, Moody's revised its rating of
California GOs to A3 from Baa1, followed in August 2004 by Standard & Poor's
upgrade to A from BBB. S&P also removed California from its credit watch. (On
September 7, following the end of this reporting period, Fitch moved its rating
for California to A- from BBB.)
During the 12-month reporting period ended August 2004, issuers in California
sold $58.6 billion in new municipal bonds, down 8% from the previous 12-month
period. For the first eight months of 2004, supply was slightly more plentiful,
due in part to the ERBs, with issuance totaling $42.7 billion, on par with
January-August 2003 levels.
5
On July 31, 2004, the state enacted its $105 billion fiscal 2005 budget, closing
a $14 billion structural gap through a combination of expenditure cuts,
borrowing and fund transfers, but no new tax increases. While we believe this
represents meaningful progress toward fiscal balance in California, the
potential still exists for smaller, but significant, deficits to re-emerge in
fiscal 2006 and 2007 if no further action is taken by that time. This is
partially the result of budget compromises--which offered future concessions for
current spending cuts--negotiated with various constituents, including education
groups, unions representing state workers, and Native Americans. These deals
could limit the state's ability to address future gaps. On a positive note, in
July 2004, the state controller's office reported that fiscal 2004 general fund
revenues totaled $75.5 billion, an increase of 10% from fiscal 2003, and current
economic data suggest that revenue growth assumptions in the 2005 budget are
reasonable.
California continued to benefit from the stability provided by a diverse state
economy. Overall, the general economic downturn of the past several years has
had a limited impact, despite severe weakness in the Silicon Valley area which
skewed economic and job performance statistics for the entire state. Recent
indicators suggest that the employment picture in Silicon Valley is stabilizing,
while the jobless rate in California as a whole dropped to 5.8% in August 2004,
compared with 6.8% in August 2003. The national average in August 2004 was 5.4%.
Personal income growth in California consistently has outpaced the national
average over the past two years, which benefits the state budget since personal
income taxes represent approximately 50% of the state's general fund revenues.
California's housing market also continued to be very strong, both in the Bay
area and Southern California, with tight inventories of homes for sale and
foreclosure rates at the lowest level in 10 years.
IN THIS ENVIRONMENT, WHAT KEY STRATEGIES WERE USED TO MANAGE THE FUNDS DURING
THE 12 MONTHS ENDED AUGUST 31, 2004?
As the market continued to anticipate increased interest rates, our major focus
during this reporting period remained on efforts to find bonds that we thought
represented good value or that we judged would have attractive total return
potential under a variety of market scenarios. With the yield curve relatively
steep during this period, our purchase
6
activity focused on finding attractive securities in the long-intermediate part
of the curve (i.e., bonds that mature in 15 to 20 years). In many cases, these
bonds offered yields similar to those of longer-term bonds with less inherent
interest rate risk and greater total return prospects. We believe this yield
curve positioning also may help the Funds produce more consistent returns over
time as interest rates rise and fall.
Much of the municipal bond issuance in California during this period came from
the general and limited tax obligation sectors, and we increased each Fund's
overall allocation to these sectors in all six Funds over the 12 month period.
As the credit ratings on California GOs were upgraded in recent months, their
prices generally improved and the Funds were able to capture some of this
benefit.
We also purchased bonds whose coupons were higher than the prevailing market
interest rates. Historically, these bonds often have held value better than
current coupon bonds when interest rates have risen.
Some of the additions to our portfolios over the past 12 months were financed
through the sale of bonds with longer maturities (i.e., beyond 20 years). In
addition, we also sought to reduce our positions in pre-refunded bonds with
shorter effective maturities or durations. In NCA, for example, we pared our
holdings of pre-refunded and escrowed bonds to 13% from 18% over the course of
the fiscal year, and reduced NUC's allocation of these bonds to 9% from 14% over
the period.
We also worked to diversify credit risk by reducing the Funds' positions in
certain lower-rated and non-rated holdings. Since lower-rated bonds generally
performed well over the 12 month period, we considered it a good time to take
advantage of opportunities to sell some bonds at very attractive prices. We also
were able to sell some lower-rated bonds with short call dates at what we
thought were very attractive prices. These bonds generally had less upside
potential than bonds with longer call or maturity dates. However, we were
careful to balance these efforts against the goal of building and maintaining
the Funds' income streams. Even as we sold some BBB rated bonds, we continued to
add other BBB and sub-investment grade bonds to the portfolios.
7
In cases where our research showed promising credit situations, we were willing
to buy bonds further out on the yield curve than our target range. We believed
these bonds held the potential for meaningful price improvement if the
conditions of the issuers improved as expected.
HOW DID THE FUNDS PERFORM DURING THIS FISCAL YEAR?
Individual results for the Nuveen California Funds, as well as for relevant
benchmarks, are presented in the accompanying table.
TOTAL RETURNS ON NET ASSET VALUE
For periods ended 8/31/04
(Annualized)
1-YEAR 5-YEAR 10-YEAR
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NCA1 8.40% 6.35% 5.88%
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NCP 12.00% 7.54% 6.97%
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NCO 12.86% 7.53% 7.01%
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NQC 11.11% 7.68% 6.90%
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NVC 11.97% 7.88% 7.30%
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NUC 11.76% 7.18% 7.26%
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Lehman Brothers CA
Tax-Exempt
Bond Index2 8.04% 6.60% 6.67%
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Lipper CA
Municipal Debt Funds
Average3 11.91% 7.50% 7.09%
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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, 2004, the annual total returns on net asset
value (NAV) for all six Funds in this report outperformed the return on the
Lehman Brothers California Tax-Exempt Bond Index. NCP, NCO and NVC also
outperformed the average return for the Lipper California peer group for this
period, while NCA, NQC and NUC trailed the Lipper average.
One of the primary factors benefiting the 12-month performances of NCP, NCO,
NQC, NVC and NUC relative to that of the unleveraged Lehman index was those
Funds' use of
1 NCA is an unleveraged Fund; the other Nuveen Funds are leveraged.
2 The Lehman Brothers California Tax-Exempt Bond Index is an unleveraged,
unmanaged index comprising a broad range of investment-grade California
municipal bonds. Results for the Lehman index do not reflect any expenses.
3 The Lipper California Municipal Debt Funds category average is calculated
using the returns of all leveraged and unleveraged closed-end
exchange-traded funds in this category for each period as follows: 1 year,
30 funds; 5 years, 19 funds; and 10 years, 17 funds. Fund and Lipper
returns assume reinvestment of dividends.
8
financial leverage. These Funds leverage themselves by issuing MuniPreferred(R)
shares that pay dividends based on current short-term rates and essentially do
not bear the risk of principal loss or gain. While leveraging can add volatility
to the Funds' NAVs and share prices, especially when substantial shifts in
interest rates occur, this strategy can also provide opportunities for
additional income and total returns for common shareholders when short-term
interest rates remain low and long-term rates are relatively steady or falling.
Because NCA is not leveraged, it could not benefit from this strategy, and this
accounted for much of the performance differential between this Fund and the
five leveraged Funds over this period.
Another factor that influenced the Funds' performances during this reporting
period was their relative yield curve positioning. For much of the reporting
period, NCP and NCO were more heavily weighted toward the longer end of the
yield curve, which helped their performance in what generally was a falling rate
environment. By contrast, NQC had relatively more exposure to the short end of
the curve, in part because of a greater number of bonds priced to shorter call
dates. This Fund did experience a number of bond calls during the period, which
necessitated the reinvestment of these proceeds in today's lower interest rate
environment.
In general, these Funds also benefited from their allocations to lower
investment-grade quality bonds. These BBB rated or unrated bonds generally
outperformed other higher quality issues as the economy improved and demand for
higher-yielding securities increased. In particular, lower-rated California
general obligation bonds performed well following their credit upgrades. The
Funds' returns were also boosted by the strong performance of non-rated
land-secured holdings and bonds backed by revenues from the 1998 master tobacco
settlement agreement.
Among the Funds' holdings that did not perform as well during this period were
some uninsured toll road bonds, which represented approximately 2%-3% of each
Fund's portfolio.
9
HOW ABOUT THE FUNDS' DIVIDENDS AND SHARE PRICES?
With short-term interest rates remaining at or near historically low levels
throughout this fiscal year, the leveraged structures of NCP, NCO, NQC, NVC and
NUC continued to support their dividend-paying capabilities. The extent of this
benefit is tied in part to the short-term rates these five leveraged Funds pay
their MuniPreferred(R) shareholders. During periods of low short-term rates, the
leveraged Funds generally pay relatively lower dividends to their MuniPreferred
shareholders, which can leave more net earnings to support common share
dividends. During this reporting period, this strategy enabled us to increase
the dividend of NCO, while helping to maintain the dividends of NCP, NQC, NVC
and NUC. Unlike the other five Funds in this report, NCA is unleveraged and
therefore unable to benefit from the leveraging strategy. This, plus the need to
reinvest bond call proceeds in a lower rate environment, led to a dividend
reduction in this Fund in June 2004.
All of these Funds seek to pay stable dividends at rates that reflect each
Fund's past results and projected future performance. During certain periods,
each Fund may pay dividends at a rate that may be more or less than the amount
of net investment income actually earned by the Fund during the period. If a
Fund has cumulatively earned more than it has paid in dividends, it holds the
excess in reserve as undistributed net investment income (UNII) as part of the
Fund's NAV. Conversely, if a Fund has cumulatively paid dividends in excess of
its earnings, the excess constitutes negative UNII that is likewise reflected in
the Fund's NAV. Each Fund will, over time, pay all of its net investment income
as dividends to shareholders. As of August 31, 2004, all of the Funds in this
report had positive UNII balances.
As of August 31, 2004, all six of these Funds were trading at discounts to their
NAVs that were generally in line with their average discounts over this entire
12-month reporting period.
10
HOW WERE THE FUNDS POSITIONED IN TERMS OF CREDIT QUALITY AND BOND CALLS AS OF
AUGUST 31, 2004?
Given the current geopolitical and economic climate, we continued to believe
that maintaining strong credit quality was an important requirement. As of the
end of August 2004, these six Funds continued to offer excellent credit quality,
with allocations of bonds rated AAA/U.S. guaranteed and AA ranging from 75% in
NQC to 72% in NCO and NVC, 71% in NCP, 65% in NUC and 55% in NCA.
At the end of August 2004, potential call exposure for these Funds during
2004-2005 ranged from 14% in NCO to 11% in NUC, 10% in NVC, 9% in NCP, 8% in NCA
and 6% in NQC. The number of actual bond calls in all of these Funds depends
largely on market interest rates.
11
Nuveen California Municipal Value Fund, Inc.
NCA
Performance
OVERVIEW As of August 31, 2004
FUND SNAPSHOT
------------------------------------
Share Price $9.27
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Common Share
Net Asset Value $10.20
------------------------------------
Premium/(Discount) to NAV -9.12%
------------------------------------
Market Yield 4.98%
------------------------------------
Taxable-Equivalent Yield1 7.60%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $257,550
------------------------------------
Average Effective
Maturity (Years) 19.25
------------------------------------
Leverage-Adjusted Duration 6.22
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 10/07/87)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 8.02% 8.40%
------------------------------------
5-Year 5.73% 6.35%
------------------------------------
10-Year 4.26% 5.88%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 38%
------------------------------------
Tax Obligation/General 13%
------------------------------------
U.S. Guaranteed 12%
------------------------------------
Healthcare 10%
------------------------------------
Utilities 6%
------------------------------------
Long-Term Care 5%
------------------------------------
Housing/Multifamily 5%
------------------------------------
Transportation 4%
------------------------------------
Water and Sewer 4%
------------------------------------
Other 3%
------------------------------------
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 51%
AA 4%
A 16%
BBB 19%
NR 9%
BB or Lower 1%
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Sep 0.04
Oct 0.04
Nov 0.04
Dec 0.04
Jan 0.04
Feb 0.04
Mar 0.04
Apr 0.04
May 0.04
Jun 0.0385
Jul 0.0385
Aug 0.0385
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
9/1/03 9.22
9.17
9.23
9.25
9.34
9.14
9.22
9.23
9.28
9.19
9.2
9.27
9.34
9.26
9.35
9.28
9.22
9.36
9.49
9.47
9.51
9.66
9.85
9.85
9.95
9.86
9.9
9.74
9.75
9.39
9.34
9.13
8.91
9.05
8.9
8.98
9.02
9.07
8.93
8.84
8.78
8.77
8.94
8.94
8.94
8.97
9.07
9.08
9.18
9.24
8/31/04 9.19
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34.5%. For investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2003 of $0.0726 per share.
12
Nuveen California Performance Plus Municipal Fund, Inc.
NCP
Performance
OVERVIEW As of August 31, 2004
FUND SNAPSHOT
------------------------------------
Share Price $14.26
------------------------------------
Common Share
Net Asset Value $15.53
------------------------------------
Premium/(Discount) to NAV -8.18%
------------------------------------
Market Yield 6.52%
------------------------------------
Taxable-Equivalent Yield1 9.95%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $201,307
------------------------------------
Average Effective
Maturity (Years) 17.38
------------------------------------
Leverage-Adjusted Duration 9.79
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/15/89)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 9.65% 12.00%
------------------------------------
5-Year 3.05% 7.54%
------------------------------------
10-Year 6.09% 6.97%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/General 21%
------------------------------------
Tax Obligation/Limited 20%
------------------------------------
Transportation 19%
------------------------------------
Water and Sewer 10%
------------------------------------
Utilities 9%
------------------------------------
Healthcare 7%
------------------------------------
Education and
Civic Organizations 5%
------------------------------------
Housing/Multifamily 4%
------------------------------------
Consumer Staples 3%
------------------------------------
Other 2%
------------------------------------
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 59%
AA 12%
A 17%
BBB 10%
NR 2%
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Sep 0.0775
Oct 0.0775
Nov 0.0775
Dec 0.0775
Jan 0.0775
Feb 0.0775
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.
9/1/03 14.1
14.18
14.51
14.44
14.56
14.51
14.48
14.46
14.77
14.68
15.01
14.94
14.8
14.63
14.55
14.72
14.75
14.81
15.05
15.04
14.78
14.89
14.91
14.8
14.9
14.97
15.06
15.07
14.97
15.06
14.72
14.18
13.75
13.51
13.08
13.09
13.25
13.51
13.4
13.36
13.25
13.28
13.62
13.8
13.79
13.7
13.79
14.2
14.36
14.49
8/31/04 14.21
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34.5%. For investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2003 of $0.0287 per share.
13
Nuveen California Municipal Market Opportunity Fund, Inc.
NCO
Performance
OVERVIEW As of August 31, 2004
FUND SNAPSHOT
------------------------------------
Share Price $14.45
------------------------------------
Common Share
Net Asset Value $15.67
------------------------------------
Premium/(Discount) to NAV -7.79%
------------------------------------
Market Yield 6.56%
------------------------------------
Taxable-Equivalent Yield1 10.02%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $127,743
------------------------------------
Average Effective
Maturity (Years) 18.45
------------------------------------
Leverage-Adjusted Duration 9.67
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 5/17/90)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 10.63% 12.86%
------------------------------------
5-Year 3.41% 7.53%
------------------------------------
10-Year 5.99% 7.01%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 23%
------------------------------------
Tax Obligation/General 22%
------------------------------------
Transportation 17%
------------------------------------
Water and Sewer 12%
------------------------------------
Healthcare 8%
------------------------------------
Utilities 6%
------------------------------------
Education and
Civic Organizations 5%
------------------------------------
Consumer Staples 3%
------------------------------------
U.S. Guaranteed 3%
------------------------------------
Other 1%
------------------------------------
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 55%
AA 17%
A 13%
BBB 10%
NR 3%
BB or Lower 2%
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Sep 0.078
Oct 0.078
Nov 0.078
Dec 0.079
Jan 0.079
Feb 0.079
Mar 0.079
Apr 0.079
May 0.079
Jun 0.079
Jul 0.079
Aug 0.079
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
9/1/03 14.4
14.26
14.29
14.35
14.6
14.41
14.48
14.41
14.7
14.57
14.54
14.63
14.68
14.69
14.73
14.64
14.73
14.86
14.85
15
14.86
15.02
15.27
15.11
15.16
15.22
15.5
15.4
15.36
15.35
15.01
14.49
13.8
13.53
13.22
13.03
13.29
13.81
13.7
13.62
13.45
13.48
13.85
13.98
13.76
13.78
13.86
14.27
14.26
14.38
8/31/04 14.33
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34.5%. For investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
2 The Fund also paid shareholders a net ordinary income distribution in
December 2003 of $0.0070 per share.
14
Nuveen California Investment Quality Municipal Fund, Inc.
NQC
Performance
OVERVIEW As of August 31, 2004
FUND SNAPSHOT
------------------------------------
Share Price $14.80
------------------------------------
Common Share
Net Asset Value $15.65
------------------------------------
Premium/(Discount) to NAV -5.43%
------------------------------------
Market Yield 6.45%
------------------------------------
Taxable-Equivalent Yield1 9.85%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $212,509
------------------------------------
Average Effective
Maturity (Years) 18.13
------------------------------------
Leverage-Adjusted Duration 8.69
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/20/90)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 8.94% 11.11%
------------------------------------
5-Year 4.70% 7.68%
------------------------------------
10-Year 6.02% 6.90%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 28%
------------------------------------
Transportation 19%
------------------------------------
Tax Obligation/General 17%
------------------------------------
Education and
Civic Organizations 10%
------------------------------------
Healthcare 8%
------------------------------------
Water and Sewer 7%
------------------------------------
Utilities 6%
------------------------------------
Other 5%
------------------------------------
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 63%
AA 12%
A 13%
BBB 9%
NR 1%
BB or Lower 2%
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Sep 0.0795
Oct 0.0795
Nov 0.0795
Dec 0.0795
Jan 0.0795
Feb 0.0795
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.
9/1/03 14.62
14.54
14.67
14.61
14.7
14.54
14.59
14.72
14.85
14.68
14.77
14.81
14.9
14.83
14.76
14.83
14.7
14.86
14.98
15.07
15.02
15.06
15.05
15.11
15.18
15.31
15.47
15.6
15.48
15.26
14.81
14.57
14.04
14.15
13.48
13.39
13.53
13.79
13.7
13.61
13.47
13.58
13.91
14.13
14.03
13.99
14.17
14.43
14.42
14.83
8/31/04 14.64
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34.5%. For investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2003 of $0.1159 per share.
15
Nuveen California Select Quality Municipal Fund, Inc.
NVC
Performance
OVERVIEW As of August 31, 2004
FUND SNAPSHOT
------------------------------------
Share Price $14.81
------------------------------------
Common Share
Net Asset Value $15.63
------------------------------------
Premium/(Discount) to NAV -5.25%
------------------------------------
Market Yield 6.52%
------------------------------------
Taxable-Equivalent Yield1 9.95%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $360,938
------------------------------------
Average Effective
Maturity (Years) 18.48
------------------------------------
Leverage-Adjusted Duration 8.13
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 5/22/91)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 12.38% 11.97%
------------------------------------
5-Year 5.07% 7.88%
------------------------------------
10-Year 7.08% 7.30%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 18%
------------------------------------
Tax Obligation/General 18%
------------------------------------
Utilities 14%
------------------------------------
Transportation 13%
------------------------------------
Healthcare 11%
------------------------------------
Water and Sewer 9%
------------------------------------
U.S. Guaranteed 7%
------------------------------------
Consumer Staples 3%
------------------------------------
Other 7%
------------------------------------
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 66%
AA 6%
A 18%
BBB 9%
NR 1%
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Sep 0.0805
Oct 0.0805
Nov 0.0805
Dec 0.0805
Jan 0.0805
Feb 0.0805
Mar 0.0805
Apr 0.0805
May 0.0805
Jun 0.0805
Jul 0.0805
Aug 0.0805
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
9/1/03 14.46
14.56
14.79
14.83
14.9
14.59
14.71
14.68
15
14.96
14.8
14.88
14.94
14.94
14.95
15.02
15
14.99
15.16
15.46
15.18
15.16
15.24
15.18
15.35
15.53
15.72
15.59
15.48
15.14
14.73
14.14
13.87
13.69
13.13
13.01
13.45
13.87
13.89
13.86
13.75
13.67
14.37
14.2
14.32
14.42
14.56
14.51
14.48
14.67
8/31/04 14.66
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34.5%. For investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2003 of $0.0759 per share.
16
Nuveen California Quality Income Municipal Fund, Inc.
NUC
Performance
OVERVIEW As of August 31, 2004
FUND SNAPSHOT
------------------------------------
Share Price $15.00
------------------------------------
Common Share
Net Asset Value $15.49
------------------------------------
Premium/(Discount) to NAV -3.16%
------------------------------------
Market Yield 6.64%
------------------------------------
Taxable-Equivalent Yield1 10.14%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $340,873
------------------------------------
Average Effective
Maturity (Years) 18.79
------------------------------------
Leverage-Adjusted Duration 9.53
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/20/91)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 9.67% 11.76%
------------------------------------
5-Year 4.67% 7.18%
------------------------------------
10-Year 7.37% 7.26%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 27%
------------------------------------
Tax Obligation/General 17%
------------------------------------
Education and
Civic Organizations 11%
------------------------------------
U.S. Guaranteed 10%
------------------------------------
Utilities 9%
------------------------------------
Transportation 8%
------------------------------------
Healthcare 8%
------------------------------------
Water and Sewer 4%
------------------------------------
Consumer Staples 4%
------------------------------------
Other 2%
------------------------------------
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 59%
AA 6%
A 24%
BBB 8%
NR 2%
BB or Lower 1%
Bar Chart:
2003-2004 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.
9/1/03 14.92
14.85
15.12
15.1
15.07
14.99
15
15.09
15.24
15.19
15.08
15.18
15.27
15.25
15.33
15.31
15.52
15.53
15.62
15.73
15.54
15.61
15.63
15.62
15.74
15.88
15.97
15.99
15.72
15.46
15
14.53
14.21
14.14
13.9
13.49
13.59
14.24
14.44
14.18
14.19
14.09
14.76
14.51
14.62
14.41
14.5
14.82
14.71
15.17
15.01
15.18
15.27
15.25
15.33
15.31
15.52
15.53
15.62
15.73
15.54
15.61
15.63
15.62
15.74
15.88
15.97
15.99
15.72
15.46
15
14.53
14.21
14.14
13.9
13.49
13.59
14.24
14.44
14.18
14.19
14.09
14.76
14.51
14.62
14.41
14.5
14.82
14.71
15.17
8/31/04 15.01
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34.5%. For investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2003 of $0.0657 per share.
17
Report of
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
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, 2004, 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 the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. 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, 2004, 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, 2004, 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 U.S. generally accepted accounting
principles.
/s/ Ernst & Young LLP
Chicago, Illinois
October 15, 2004
18
Nuveen California Municipal Value Fund, Inc. (NCA)
Portfolio of
INVESTMENTS August 31, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 1.7%
$ 2,400 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 Baa3 $ 1,986,456
Settlement 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 2,334,475
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.250%, 6/01/33
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 0.6%
1,500 California Statewide Community Development Authority, 12/06 at 105.00 N/R 1,498,290
Certificates of Participation, San Diego Space and Science
Foundation, Series 1996, 7.500%, 12/01/26
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 10.4%
1,000 Arcadia, California, Hospital Revenue Bonds, Methodist 11/04 at 100.00 BBB+ 1,004,770
Hospital of Southern California, Series 1992,
6.500%, 11/15/12
12,000 California Health Facilities Financing Authority, Revenue 12/09 at 101.00 A3 12,848,640
Bonds, Cedars-Sinai Medical Center, Series 1999A,
6.125%, 12/01/30
4,000 California Statewide Community Development Authority, No Opt. Call AAA 4,272,080
Revenue Refunding Bonds, Sherman Oaks Health System,
Series 1998A, 5.000%, 8/01/22 - AMBAC Insured
5,000 Central California Joint Powers Health Finance Authority, 2/10 at 101.00 Baa2 5,133,150
Certificates of Participation, Community Hospitals of Central
California Obligated Group, Series 2000, 6.000%, 2/01/30
1,440 Stockton, California, Health Facility Revenue Bonds, 12/07 at 102.00 BBB+ 1,547,395
Dameron Hospital Association, Series 1997A,
5.300%, 12/01/08
1,730 West Contra Costa Healthcare District, California, Certificates 7/14 at 100.00 AAA 1,884,264
of Participation, Series 2004, 5.375%, 7/01/21 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 4.4%
3,350 ABAG Finance Authority for Non-Profit Corporations, No Opt. Call Baa2 3,665,101
California, Multifamily Housing Revenue Refunding Bonds,
United Dominion/2000 Post Apartments, Series 2000B,
6.400%, 8/15/30 (Alternative Minimum Tax) (Mandatory
put 8/15/08)
2,600 California Statewide Community Development Authority, 7/09 at 102.00 N/R 2,479,880
Multifamily Housing Revenue Bonds, Harbor City Lights,
Series 1999Y, 6.650%, 7/01/39 (Alternative Minimum Tax)
5,000 California Statewide Community Development Authority, No Opt. Call BBB+ 5,312,550
Multifamily Housing Refunding Bonds, Archstone
Communities Trust, Archstone Pelican Point Apartments,
Series 1999H, 5.300%, 6/01/29 (Mandatory put 6/01/08)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.3%
65 California Rural Home Mortgage Finance Authority, No Opt. Call Aaa 66,199
Single Family Mortgage Revenue Bonds, Mortgage-Backed
Securities Program, Series 1993A-2, 7.950%, 12/01/24
(Alternative Minimum Tax)
630 California Rural Home Mortgage Finance Authority, Single No Opt. Call AAA 638,940
Family Mortgage Revenue Bonds, Mortgage-Backed
Securities Program, Series 1997D, 6.700%, 5/01/29
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.4%
1,000 California Municipal Finance Authority, Solid Waste Disposal No Opt. Call BBB 1,002,150
Revenue Bonds, Waste Management Inc., Series 2004,
4.100%, 9/01/14 (Alternative Minimum Tax) (WI, settling
9/09/04) (Mandatory put 9/01/09)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 4.6%
ABAG Finance Authority for Non-Profit Corporations, California,
Revenue Bonds, Elder Care Alliance of Union City, Series 2004:
1,850 5.400%, 8/15/24 8/14 at 100.00 BBB 1,882,023
2,130 5.600%, 8/15/34 8/14 at 100.00 BBB 2,177,222
2,720 ABAG Finance Authority for Non-Profit Corporations, 10/07 at 102.00 BB+ 2,685,918
California, Certificates of Participation, American Baptist
Homes of the West, Series 1997A, 5.750%, 10/01/17
19
Nuveen California Municipal Value Fund, Inc. (NCA) (continued)
Portfolio of INVESTMENTS August 31, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE (continued)
$ 3,000 California Statewide Community Development Authority, 4/09 at 101.00 BBB- $ 3,035,970
Certificates of Participation, Internext Group, Series 1999,
5.375%, 4/01/17
2,000 Riverside County Public Financing Authority, California, 5/09 at 101.00 BBB- 2,069,220
Certificates of Participation, Air Force Village West,
Series 1999, 5.750%, 5/15/19
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 13.0%
7,500 California, Various Purpose General Obligation Bonds, 3/10 at 101.00 AAA 8,198,325
Series 2000, 5.750%, 3/01/27 - MBIA Insured
California, General Obligation Bonds, Series 2004:
500 5.000%, 2/01/20 2/14 at 100.00 A 526,650
5,200 5.000%, 2/01/21 2/14 at 100.00 A 5,448,456
2,000 5.300%, 4/01/29 4/14 at 100.00 A 2,081,460
2,850 5.250%, 4/01/34 4/14 at 100.00 A 2,941,286
1,000 Fremont Unified School District, Alameda County, California, 8/12 at 101.00 AAA 1,057,810
General Obligation Bonds, Series 2002A, 5.000%, 8/01/21 -
FGIC Insured
3,200 Los Angeles Unified School District, California, General 7/13 at 100.00 AAA 3,364,192
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 1,918,782
General Obligation Bonds, Series 2001, 5.125%, 8/01/21 -
FSA Insured
2,000 Puerto Rico, Public Improvement General Obligation No Opt. Call AAA 2,340,260
Refunding Bonds, Series 2001A, 5.500%, 7/01/20 -
MBIA Insured
1,500 San Ramon Valley Unified School District, Contra Costa 8/13 at 100.00 AAA 1,568,550
County, California, General Obligation Bonds, Series 2003,
5.000%, 8/01/23 - FSA Insured
2,325 Temecula Valley Unified School District, Riverside County, 9/06 at 102.00 AAA 2,576,100
California, General Obligation Bonds, Series 1990F,
6.000%, 9/01/20 (Pre-refunded to 9/01/06) - FSA Insured
1,460 West Contra Costa Unified School District, Contra Costa 8/11 at 101.00 AAA 1,544,476
County, California, General Obligation Bonds, Series 2003B,
5.000%, 8/01/20 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 37.0%
Bell Community Redevelopment Agency, California, Tax
Allocation Bonds, Bell Project Area, Series 2003:
3,000 5.500%, 10/01/23 - RAAI Insured 10/13 at 100.00 AA 3,193,920
1,000 5.625%, 10/01/33 - RAAI Insured 10/13 at 100.00 AA 1,053,340
Burbank Redevelopment Agency, California, Tax Allocation
Bonds, Golden State Redevelopment Project, Series 2003:
1,700 5.625%, 12/01/28 - FGIC Insured 12/13 at 100.00 AAA 1,845,282
5,010 5.750%, 12/01/33 - FGIC Insured 12/13 at 100.00 AAA 5,477,233
2,400 Calexico Community Redevelopment Agency, California, 8/13 at 102.00 AAA 2,447,472
Tax Allocation Bonds, Merged Central Business and
Residential District Project, Series 2003C,
5.000%, 8/01/28 - AMBAC Insured
California, Economic Recovery Revenue Bonds, Series 2004A:
3,400 5.000%, 7/01/15 7/14 at 100.00 AA- 3,751,084
2,000 5.000%, 7/01/16 7/11 at 100.00 AA- 2,140,040
9,000 California State Public Works Board, Lease Revenue Bonds, 1/06 at 100.00 AAA 9,323,460
Department of Corrections, State Substance Abuse
Treatment Facility and Corcoran II State Prison,
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 4,403,600
Department of Health Services, Series 1999A,
5.750%, 11/01/24 - MBIA Insured
2,000 Capistrano Unified School District, Ladera, California, 9/09 at 102.00 N/R 2,032,780
Special Tax Bonds, Community Facilities District 98-2,
Series 1999, 5.750%, 9/01/29
3,025 Chino Unified School District, California, Certificates 9/05 at 102.00 AAA 3,202,658
of Participation, Master Lease Program, Series 1995,
6.000%, 9/01/20 - FSA Insured
2,800 Commerce Community Development Commission, California, 8/07 at 102.00 N/R 2,883,104
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 2,154,740
Refunding Bonds, Amended Davis Addition Project Area,
Series 1997A, 6.700%, 9/01/14
20
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
Golden State Tobacco Securitization Corporation, California,
Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2003B:
$ 3,800 5.500%, 6/01/33 6/13 at 100.00 A- $ 3,907,236
3,000 5.625%, 6/01/38 6/13 at 100.00 A- 3,106,590
2,750 Los Angeles County Schools, California, Certificates of 9/13 at 100.00 AAA 2,796,860
Participation, Pooled Financing Program, Regionalized
Business Services Corporation, Series 2003A,
5.000%, 9/01/28 - FSA Insured
3,685 Milpitas, California, Local Improvement District 20 Limited 9/04 at 103.00 N/R 3,839,881
Obligation Bonds, Series 1998A, 5.650%, 9/02/13
Modesto Schools Infrastructure Financing Agency, Stanislaus
County, California, Special Tax Revenue Bonds, Series 2004:
1,045 5.250%, 9/01/22 - AMBAC Insured 9/14 at 100.00 AAA 1,130,742
1,145 5.250%, 9/01/23 - AMBAC Insured 9/14 at 100.00 AAA 1,231,207
1,255 5.250%, 9/01/24 - AMBAC Insured 9/14 at 100.00 AAA 1,342,122
420 Oakland Redevelopment Agency, California, Subordinate 3/13 at 100.00 AAA 468,061
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 8,866,800
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 3,428,337
Revenue Bonds, Series 2002D, 5.375%, 7/01/36
485 Riverside County, California, Subordinate Lien Mobile Home 10/04 at 100.00 N/R 422,406
Park Revenue Bonds, Bravo Mobile Home Park Project,
Series 1999B, 6.500%, 3/20/29
1,440 San Dimas Housing Authority, California, Mobile Home 7/08 at 102.00 N/R 1,413,202
Park Revenue Bonds, Charter Oak Mobile Home Estates
Acquisition Project, Series 1998A, 5.700%, 7/01/28
3,130 San Francisco Redevelopment Agency, California, Lease 7/11 at 102.00 AAA 3,350,008
Revenue Bonds, Moscone Convention Center, Series 2004,
5.250%, 7/01/23 - AMBAC Insured
345 San Jose Redevelopment Agency, California, Tax Allocation 2/06 at 100.00 AAA 348,767
Bonds, Merged Area Redevelopment Project, Series 1993,
5.000%, 8/01/20 - MBIA Insured
2,750 San Jose Financing Authority, California, Lease Revenue 9/11 at 100.00 AAA 2,899,463
Refunding Bonds, Convention Center Project, Series 2001F,
5.000%, 9/01/20 - MBIA Insured
1,700 Shafter Joint Powers Financing Authority, California, Lease 1/07 at 101.00 A- 1,847,900
Revenue Bonds, Community Correctional Facility Acquisition
Project, Series 1997A, 5.950%, 1/01/11
1,000 Simi Valley, California, Certificates of Participation, 9/14 at 100.00 AAA 1,036,240
Series 2004, 5.000%, 9/01/24 (WI, settling 9/02/04) -
AMBAC Insured
3,845 Ventura County Superintendent of Schools, California, 12/11 at 100.00 AAA 3,901,906
Certificates Participation, Series 2003, 5.000%, 12/01/27 -
AMBAC Insured
3,000 Virgin Islands Public Finance Authority, Gross Receipts 10/10 at 101.00 BBB 3,423,150
Taxes Loan Notes, Series 1999A, 6.500%, 10/01/24
2,570 Vista Joint Powers Financing Authority, California, Special 9/05 at 102.00 N/R 2,630,858
Tax Lease Revenue Refunding Bonds, Community Facilities
District 90-2, Series 1997A, 5.875%, 9/01/20
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 4.3%
5,500 Foothill/Eastern Transportation Corridor Agency, California, 1/14 at 101.00 BBB- 4,307,930
Toll Road Revenue Refunding Bonds, Series 1999,
0.000%, 1/15/27
1,250 Fresno, California, Airport Revenue Bonds, Series 2000A, 7/10 at 101.00 AAA 1,326,038
5.500%, 7/01/30 - FSA Insured
5,000 San Francisco Airports Commission, California, Revenue 5/06 at 102.00 AAA 5,318,200
Bonds, San Francisco International Airport, Second Series,
Issue 10A, 5.625%, 5/01/21 (Alternative Minimum Tax) -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED*** - 12.2%
3,115 California Educational Facilities Authority, Revenue Bonds, 6/10 at 101.00 Baa3*** 3,747,688
Pooled College and University Projects, Series 2000C,
6.750%, 6/01/30
2,065 Contra Costa County, California, GNMA Mortgage-Backed No Opt. Call AAA 2,974,220
Securities Program, Home Mortgage Revenue Bonds,
Series 1988, 8.250%, 6/01/21 (Alternative Minimum Tax)
21
Nuveen California Municipal Value Fund, Inc. (NCA) (continued)
Portfolio of INVESTMENTS August 31, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (continued)
$ 2,500 Los Angeles Community Redevelopment Agency, California, 1/05 at 100.00 BBB*** $ 2,562,725
Tax Allocation Refunding Bonds, Central Business District
Redevelopment Project, Series 1987G, 6.750%, 7/01/10
4,808 Merced Irrigation District, California, Subordinated Revenue 3/08 at 102.00 AAA 5,687,576
Certificates of Participation, Electric System Project,
Series 2000, 7.450%, 3/01/18 (Pre-refunded to 3/01/08)
8,565 Palmdale, California, GNMA Mortgage-Backed Securities No Opt. Call AAA 4,925,732
Program, Single Family Mortgage Revenue Bonds,
Series 1988A, 0.000%, 3/01/17
20,415 San Bernardino County, California, GNMA Mortgage-Backed No Opt. Call AAA 8,972,188
Securities Program, Single Family Home Mortgage Revenue
Bonds, Series 1988A, 0.000%, 9/01/21 (Alternative
Minimum Tax)
2,220 South Placer Wastewater Authority, California, Wastewater 11/10 at 101.00 AAA 2,511,308
Revenue Bonds, Series 2000A, 5.000%, 11/01/20
(Pre-refunded to 11/01/10) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 5.8%
4,500 California Department of Water Resources, Power Supply 5/12 at 101.00 A2 4,811,310
Revenue Bonds, Series 2002A, 5.125%, 5/01/18
3,000 California Statewide Community Development Authority, 12/04 at 102.00 N/R 2,588,790
Refunding Certificates of Participation, Rio Bravo Fresno
Project, Series 1999A, 6.300%, 12/01/18
500 Los Angeles Department of Water and Power, California, 7/13 at 100.00 AAA 527,540
Power System Revenue Bonds, Series 2003A-2,
5.000%, 7/01/21 - MBIA Insured
3,300 Merced Irrigation District, California, Revenue Refunding 9/05 at 102.00 Baa3 3,420,877
Bonds, Electric System Project, Series 2001, 6.850%, 9/01/36
3,470 Puerto Rico Industrial, Tourist, Educational, Medical and 6/10 at 101.00 Baa3 3,717,096
Environmental Control Facilities Financing Authority,
Cogeneration Facility Revenue Bonds, Series 2000A,
6.625%, 6/01/26 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 4.2%
500 Los Angeles County Sanitation Districts Financing Authority, 10/13 at 100.00 AAA 523,200
California, Senior Revenue Bonds, Capital Projects,
Series 2003A, 5.000%, 10/01/23 - FSA Insured
5,000 Orange County Sanitation District, California, Certificates 8/13 at 100.00 AAA 5,229,750
of Participation, Series 2003, 5.250%, 2/01/27 - FGIC Insured
1,580 San Diego County Water Authority, California, Water 5/12 at 101.00 AAA 1,610,510
Revenue Refunding Certificates of Participation,
Series 2002A, 5.000%, 5/01/26 - MBIA Insured
3,500 Woodbridge Irrigation District, California, Certificates 7/13 at 100.00 BBB+ 3,568,250
of Participation, Water Systems Project, Series 2003,
5.625%, 7/01/43
------------------------------------------------------------------------------------------------------------------------------------
$ 258,083 Total Long-Term Investments (cost $237,126,678) - 98.9% 254,722,417
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.1% 2,827,927
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 257,550,344
====================================================================================================================
(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 registered public accounting firm): Dates
(month and year) and prices of the earliest optional
call or redemption. There may be other call provisions
at varying prices at later dates.
** Ratings (not covered by the report of independent
registered public accounting firm): 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.
See accompanying notes to financial statements.
22
Nuveen California Performance Plus Municipal Fund, Inc. (NCP)
Portfolio of
INVESTMENTS August 31, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 4.4%
$ 6,125 California County Tobacco Securitization Agency, 6/12 at 100.00 Baa3 $ 6,070,978
Tobacco 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 2,804,700
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.750%, 6/01/39
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 6.8%
4,730 California Infrastructure Economic Development Bank, 10/11 at 101.00 A- 4,996,488
Revenue Bonds, J. David Gladstone Institutes, Series 2001,
5.500%, 10/01/21
4,730 California State University, Systemwide Revenue Bonds, 11/12 at 100.00 AAA 5,031,112
Series 2002A, 5.000%, 11/01/19 - AMBAC Insured
1,500 California Statewide Community Development Authority, 8/12 at 100.00 A 1,545,510
Student Housing Revenue Bonds, EAH - Irvine East Campus
Apartments LLC Project, Series 2002A, 5.500%, 8/01/22 -
ACA Insured
2,000 University of California, Revenue Bonds, Multi-Purpose 5/13 at 100.00 AAA 2,184,660
Projects, Series 2003A, 5.125%, 5/15/17 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 10.3%
3,000 California Health Facilities Financing Authority, Revenue 12/09 at 101.00 A3 3,212,160
Bonds, Cedars-Sinai Medical Center, Series 1999A,
6.125%, 12/01/30
2,780 California Health Facilities Financing Authority, Insured 11/04 at 101.00 A 2,815,528
Health 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- 5,677,650
Refunding Certificates of Participation, St. Joseph Health
System, Series 1997, 5.125%, 7/01/17
2,000 California Statewide Community Development Authority, No Opt. Call AAA 2,136,040
Revenue Refunding Bonds, Sherman Oaks Health System,
Series 1998A, 5.000%, 8/01/22 - AMBAC Insured
Central California Joint Powers Health Finance Authority,
Certificates of Participation, Community Hospitals of Central
California, Series 1993:
2,500 5.250%, 2/01/13 2/05 at 100.00 Baa2 2,509,075
4,665 5.000%, 2/01/23 2/05 at 100.00 Baa2 4,467,111
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 5.7%
5,000 California Statewide Community Development Authority, 7/08 at 101.00 BBB 5,294,550
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 4,068,037
Housing Revenue Bonds, Ridgecroft Apartments,
Series 1997E, 6.250%, 9/20/39 (Alternative Minimum Tax)
2,060 Los Angeles County Community Development Commission, 11/04 at 100.00 Aaa 2,065,706
California, FHA-Insured Section 8 Mortgage Revenue
Refunding Bonds, Los Tomas Apartments, Series 1993,
6.500%, 7/15/23
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 31.9%
6,435 California, General Obligation Veterans Welfare Bonds, 12/05 at 101.00 A 6,573,095
Series 2000BT, 5.375%, 12/01/16 (Alternative Minimum Tax)
California, General Obligation Bonds, Series 2003:
2,350 5.250%, 2/01/21 8/13 at 100.00 A 2,509,330
2,000 5.250%, 2/01/22 - CIFG Insured 8/13 at 100.00 AAA 2,147,840
California, General Obligation Bonds, Series 2004:
500 5.000%, 2/01/23 2/14 at 100.00 A 516,480
3,950 5.200%, 4/01/26 4/14 at 100.00 A 4,094,333
2,345 5.300%, 4/01/29 4/14 at 100.00 A 2,440,512
3,400 5.250%, 4/01/34 4/14 at 100.00 A 3,508,902
23
Nuveen California Performance Plus Municipal Fund, Inc. (NCP) (continued)
Portfolio of INVESTMENTS August 31, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 3,550 Centinela Valley Union High School District, Los Angeles No Opt. Call AAA $ 3,890,197
County, California, General Obligation Bonds, Series 2002A,
5.250%, 2/01/26 - MBIA Insured
2,500 Hawthorne School District, Los Angeles County, California, 11/08 at 102.00 AAA 2,743,325
General Obligation Bonds, Series 1997A, 5.500%, 5/01/22 -
FGIC Insured
1,530 Long Beach Community College District, California, General 5/13 at 100.00 AAA 1,645,102
Obligation Bonds, Series 2003A, 5.000%, 5/01/18 -
MBIA Insured
8,000 Los Angeles Unified School District, California, General 7/10 at 100.00 AAA 8,403,280
Obligation Bonds, Series 2000D, 5.375%, 7/01/25 -
FGIC Insured
4,765 North Orange County Community College District, California, No Opt. Call AAA 1,400,529
General Obligation Bonds, Series 2003B, 0.000%, 8/01/27 -
FGIC Insured
2,575 Oxnard School District, Ventura County, California, General 2/22 at 103.00 AAA 2,923,398
Obligation Refunding Bonds, Series 2001A, 5.750%, 8/01/30 -
MBIA Insured
6,000 Puerto Rico, Public Improvement Bond Payment Obligation, No Opt. Call AAA 7,316,520
Series 1993, 7.000%, 7/01/10 - MBIA Insured
Riverside Community College District, California, General
Obligation Bonds, Series 2004A:
1,485 5.250%, 8/01/25 - MBIA Insured 8/14 at 100.00 AAA 1,581,198
1,980 5.250%, 8/01/26 - MBIA Insured 8/14 at 100.00 AAA 2,096,860
4,000 San Diego Unified School District, San Diego County, 7/13 at 101.00 AAA 4,522,960
California, General Obligation Bonds, Series 2003E,
5.250%, 7/01/22 - FSA Insured
3,000 San Jose-Evergreen Community College District, Santa 9/10 at 100.00 AAA 3,409,170
Clara County, California, General Obligation Bonds,
Series 2000B, 5.600%, 9/01/24 - FGIC Insured
2,200 Santa Maria Joint Union High School District, No Opt. Call Aaa 2,556,598
Santa Barbara and San Luis Obispo Counties, California,
General Obligation Bonds, Series 2003B, 5.625%, 8/01/24 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 30.2%
California, Economic Recovery Revenue Bonds, Series 2004A:
4,170 5.000%, 7/01/15 7/14 at 100.00 AA- 4,600,594
2,500 5.000%, 7/01/16 7/11 at 100.00 AA- 2,675,050
1,575 California State Public Works Board, Lease Revenue Bonds, 12/13 at 100.00 A- 1,701,032
Department of General Services, Series 2003D,
5.500%, 6/01/20
3,010 California State Public Works Board, Lease Revenue Bonds, 6/14 at 100.00 A- 3,286,198
Department of Mental Health, Coalinga State Hospital,
Series 2004A, 5.500%, 6/01/19
5,045 California State Public Works Board, Lease Revenue 3/12 at 100.00 AAA 5,367,779
Bonds, Department of Corrections, Series 2002A,
5.250%, 3/01/22 - AMBAC Insured
2,500 Corona Public Financing Authority, California, Superior 9/09 at 102.00 AAA 2,638,675
Lien Revenue Bonds, Series 1999A, 5.000%, 9/01/20 -
FSA Insured
3,750 Golden State Tobacco Securitization Corporation, 6/13 at 100.00 A- 3,855,825
California, Enhanced Tobacco Settlement Asset-Backed
Bonds, Series 2003B, 5.500%, 6/01/33
2,000 Oakland Redevelopment Agency, California, Subordinate 3/13 at 100.00 AAA 2,255,060
Lien Tax Allocation Bonds, Central District Redevelopment
Project, Series 2003, 5.500%, 9/01/15 - FGIC Insured
8,800 Orange County, California, Recovery Certificates of 7/06 at 102.00 AAA 9,536,384
Participation, Series 1996A, 6.000%, 7/01/26 - MBIA Insured
1,000 Paramount Redevelopment Agency, California, Tax Allocation 8/13 at 100.00 AAA 1,041,200
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 4,155,560
Revenue Bonds, Series 2002D, 5.375%, 7/01/36
1,000 Sacramento City Financing Authority, California, Lease No Opt. Call AAA 1,139,230
Revenue Refunding Bonds, Series 1993A, 5.400%, 11/01/20 -
MBIA Insured
24
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
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 $ 4,098,017
2,695 5.000%, 6/01/20 - MBIA Insured 6/13 at 100.00 AAA 2,852,361
2,000 5.000%, 6/01/21 - MBIA Insured 6/13 at 100.00 AAA 2,104,800
3,115 5.000%, 6/01/22 - MBIA Insured 6/13 at 100.00 AAA 3,259,692
Sweetwater Union High School District, San Diego County,
California, Certificates of Participation, Series 2002:
2,000 5.000%, 9/01/23 - FSA Insured 9/12 at 102.00 AAA 2,082,280
4,015 5.000%, 9/01/24 - FSA Insured 9/12 at 102.00 AAA 4,160,504
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 29.3%
5,360 California Infrastructure Economic Development Bank, 7/13 at 100.00 AAA 5,602,969
First Lien Revenue Bonds, San Francisco Bay Area Toll
Bridge, Series 2003A, 5.000%, 7/01/23 - FSA Insured
6,500 Foothill/Eastern Transportation Corridor Agency, California, 1/14 at 101.00 BBB- 4,989,400
Toll Road Revenue Refunding Bonds, Series 1999,
0.000%, 1/15/29
Long Beach, California, Harbor Revenue Bonds, Series 2000A:
2,740 5.750%, 5/15/14 (Alternative Minimum Tax) 5/10 at 101.00 AA- 3,072,335
11,885 5.750%, 5/15/15 (Alternative Minimum Tax) 5/10 at 101.00 AA- 13,176,305
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 1,947,522
2,500 5.000%, 7/01/17 - FSA Insured 7/13 at 100.00 AAA 2,696,925
8,550 Port of Oakland, California, Revenue Bonds, Series 2000K, 5/10 at 100.00 AAA 9,203,562
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 1,509,186
5.250%, 11/01/20 - FGIC Insured
14,000 San Francisco Airports Commission, California, Revenue 5/10 at 101.00 AAA 14,675,920
Bonds, San Francisco International Airport, Second
Series 2000, Issue 25, 5.500%, 5/01/24 (Alternative
Minimum Tax) - FSA Insured
2,000 San Francisco Airports Commission, California, Revenue 5/11 at 100.00 AAA 2,064,480
Refunding Bonds, San Francisco International Airport,
Second Series 2001, Issue 27B, 5.000%, 5/01/23 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED*** - 3.7%
1,590 California Statewide Community Development Authority, No Opt. Call N/R*** 1,683,794
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 5,761,200
Securities Program, Home Mortgage Revenue Bonds,
Series 1988, 8.250%, 6/01/21 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 13.6%
747 California Pollution Control Financing Authority, Solid Waste 7/07 at 102.00 N/R 110,232
Disposal Revenue Bonds, CanFibre of Riverside, Series 1997A,
9.000%, 7/01/19 (Alternative Minimum Tax)#
5,250 California Department of Water Resources, Power Supply 5/12 at 101.00 A2 5,613,195
Revenue Bonds, Series 2002A, 5.125%, 5/01/18
5,160 California Statewide Community Development Authority, 12/04 at 102.00 N/R 4,452,719
Refunding Certificates of Participation, Rio Bravo Fresno
Project, Series 1999A, 6.300%, 12/01/18
725 Los Angeles Department of Water and Power, California, 7/13 at 100.00 AAA 764,933
Power System Revenue Bonds, Series 2003A-2,
5.000%, 7/01/21 - MBIA Insured
4,100 Merced Irrigation District, California, Revenue Refunding 9/05 at 102.00 Baa3 4,246,370
Bonds, Electric System Project, Series 2001, 6.750%, 9/01/31
10,450 Orange County Public Financing Authority, California, Waste No Opt. Call Aaa 11,578,809
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 533,965
Revenue Refunding Bonds, Series 2002Q, 5.250%, 8/15/22 -
FSA Insured
25
Nuveen California Performance Plus Municipal Fund, Inc. (NCP) (continued)
Portfolio of INVESTMENTS August 31, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 14.8%
$ 2,500 California Department of Water Resources, Water System 6/13 at 100.00 AAA $ 2,774,425
Revenue Bonds, Central Valley Project, Series 2003Y,
5.250%, 12/01/16 - FGIC Insured
4,770 Los Angeles Department of Water and Power, California, 7/14 at 100.00 AAA 5,228,206
Waterworks Revenue Bonds, Series 2004C, 5.250%, 7/01/20 -
MBIA Insured
2,500 Pajaro Valley Water Management Agency, California, 3/09 at 101.00 AAA 2,739,150
Revenue Certificates of Participation, Series 1999A,
5.750%, 3/01/29 - AMBAC Insured
5,985 Sacramento County Sanitation District Financing Authority, 12/10 at 101.00 AA 6,715,828
California, Revenue Bonds, Series 2000A, 5.250%, 12/01/12
4,000 Sacramento County Sanitation District Financing Authority, No Opt. Call AAA 4,636,000
California, Revenue Refunding Bonds, Series 2001,
5.500%, 12/01/20 - AMBAC Insured
4,585 Santa Maria, California, Subordinate Water and Wastewater 8/12 at 101.00 AAA 4,963,675
Revenue Certificates of Participation, Series 1997A,
5.550%, 8/01/27 - AMBAC Insured
1,700 South Gate Utility Authority, California, Subordinate Revenue 10/11 at 102.00 AAA 1,781,481
Bonds, Water and Sewer System Projects, Series 2001,
5.000%, 10/01/22 - FGIC Insured
945 Woodbridge Irrigation District, California, Certificates 7/13 at 100.00 BBB+ 963,426
of Participation, Water Systems Project, Series 2003,
5.625%, 7/01/43
------------------------------------------------------------------------------------------------------------------------------------
$ 289,372 Total Long-Term Investments (cost $287,077,950) - 150.7% 303,455,187
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.0% 3,851,708
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.7)% (106,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 201,306,895
====================================================================================================================
(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 registered public accounting firm): Dates
(month and year) and prices of the earliest optional
call or redemption. There may be other call provisions
at varying prices at later dates.
** Ratings (not covered by the report of independent
registered public accounting firm): 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.
# 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 the CanFibre
of Riverside assets on behalf of the various Nuveen
Funds. CFRHoldings, Inc. determined that a sale of the
facility was in the best interest of the shareholders
and proceeded accordingly.
N/R Investment is not rated.
See accompanying notes to financial statements.
26
Nuveen California Municipal Market Opportunity Fund, Inc. (NCO)
Portfolio of
INVESTMENTS August 31, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 4.8%
$ 4,305 California County Tobacco Securitization Agency, 6/12 at 100.00 Baa3 $ 4,267,030
Tobacco Settlement 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 1,867,580
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.250%, 6/01/33
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 6.9%
1,530 University of California, Certificates of Participation, 1/10 at 101.00 Aa2 1,620,851
San Diego and Sacramento Campus Projects, Series 2002A,
5.250%, 1/01/20
6,580 University of California, Revenue Bonds, Multiple Purpose 9/08 at 101.00 Aa2 7,219,247
Projects, Series 2000K, 5.000%, 9/01/13
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 11.9%
2,000 California Health Facilities Financing Authority, Revenue 12/09 at 101.00 A3 2,141,440
Bonds, Cedars-Sinai Medical Center, Series 1999A,
6.125%, 12/01/30
3,200 California Infrastructure Economic Development Bank, 8/11 at 102.00 A 3,294,592
Revenue Bonds, Kaiser Hospital Assistance LLC,
Series 2001A, 5.550%, 8/01/31
1,000 California Statewide Community Development Authority, No Opt. Call AAA 1,068,020
Revenue Refunding Bonds, Sherman Oaks Health System,
Series 1998A, 5.000%, 8/01/22 - AMBAC Insured
5,930 Central California Joint Powers Health Finance Authority, 2/05 at 100.00 Baa2 5,678,449
Certificates of Participation, Community Hospitals of Central
California, Series 1993, 5.000%, 2/01/23
3,000 Loma Linda, California, Hospital Revenue Bonds, Loma Linda 12/04 at 101.00 BB+ 3,037,290
University Medical Center, Series 1993A, 6.500%, 12/01/18
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.3%
1,550 San Bernardino County Housing Authority, California, No Opt. Call BBB+ 1,662,127
Multifamily Housing Revenue Refunding Bonds, Equity
Residential Properties/Redlands Lawn and Tennis Apartments,
Series 1999A, 5.200%, 6/15/29 (Mandatory put 6/15/09)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 32.7%
4,950 California, Various Purpose General Obligation Bonds, 3/10 at 101.00 AAA 5,410,895
Series 2000, 5.750%, 3/01/27 - MBIA Insured
5,000 California, General Obligation Veterans Welfare Bonds, 12/05 at 101.00 A 5,107,300
Series 2000BT, 5.375%, 12/01/16 (Alternative Minimum Tax)
California, General Obligation Bonds, Series 2003:
1,000 5.250%, 11/01/19 - RAAI Insured 11/13 at 100.00 AA 1,081,520
1,400 5.250%, 2/01/20 8/13 at 100.00 A 1,502,424
1,000 5.250%, 2/01/22 - CIFG Insured 8/13 at 100.00 AAA 1,073,920
California, General Obligation Bonds, Series 2004:
3,000 5.000%, 2/01/23 2/14 at 100.00 A 3,098,880
2,500 5.125%, 4/01/23 4/14 at 100.00 A 2,613,525
2,100 5.250%, 4/01/34 4/14 at 100.00 A 2,167,263
2,670 Coast Community College District, Orange County, California, 8/13 at 100.00 AAA 2,824,353
General Obligation Refunding Bonds, Series 2003A,
5.000%, 8/01/21 - MBIA Insured
5,000 Los Angeles Unified School District, California, General 7/10 at 100.00 AAA 5,252,050
Obligation Bonds, Series 2000D, 5.375%, 7/01/25 -
FGIC Insured
2,500 Oakland Unified School District, Alameda County, California, 8/12 at 100.00 AAA 2,686,475
General Obligation Bonds, Series 2002, 5.250%, 8/01/21 -
FGIC Insured
1,000 Pomona Unified School District, Los Angeles County, California, 8/11 at 103.00 AAA 1,189,010
General Obligation Refunding Bonds, Series 1997A,
6.150%, 8/01/15 - MBIA Insured
2,000 Riverside Community College District, California, General 8/14 at 100.00 AAA 2,142,840
Obligation Bonds, Series 2004A, 5.250%, 8/01/24 -
MBIA Insured
27
Nuveen California Municipal Market Opportunity Fund, Inc. (NCO) (continued)
Portfolio of INVESTMENTS August 31, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 5,000 San Diego Unified School District, California, General 7/10 at 100.00 AAA $ 5,544,750
Obligation Bonds, Election of 1998, Series 2000B,
5.125%, 7/01/21 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 35.9%
California, Economic Recovery Revenue Bonds, Series 2004A:
2,700 5.000%, 7/01/15 7/14 at 100.00 AA- 2,978,802
2,000 5.000%, 7/01/16 7/11 at 100.00 AA- 2,140,040
2,000 California State Public Works Board, Lease Revenue Bonds, 6/14 at 100.00 A- 2,183,520
Department of Mental Health, Coalinga State Hospital,
Series 2004A, 5.500%, 6/01/19
3,000 Los Angeles County Public Works Financing Authority, 10/07 at 101.00 AA 3,098,970
California, Revenue Bonds, Regional Park and Open Space
District, Series 1997A, 5.000%, 10/01/19
Modesto Schools Infrastructure Financing Agency, Stanislaus
County, California, Special Tax Revenue Bonds, Series 2004:
1,375 5.250%, 9/01/25 - AMBAC Insured 9/14 at 100.00 AAA 1,461,295
1,500 5.250%, 9/01/26 - AMBAC Insured 9/14 at 100.00 AAA 1,585,470
2,000 Monterey County, California, Certificates of Participation, 8/11 at 100.00 Aaa 2,079,880
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 1,047,980
District 5, Freeway Interchange Project, Series 1997,
6.375%, 9/01/17
10,900 Ontario Redevelopment Financing Authority, San Bernardino No Opt. Call AAA 14,969,624
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 No Opt. Call AAA 2,866,825
Revenue 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 2,363,826
Medical Center Financing Project, Series 1995,
5.500%, 8/01/22 - MBIA Insured
1,200 San Jose Financing Authority, California, Lease Revenue 9/11 at 100.00 AAA 1,265,220
Refunding Bonds, Convention Center Project, Series 2001F,
5.000%, 9/01/20 - MBIA Insured
7,000 Union City Community Redevelopment Agency, California, 10/09 at 101.00 AAA 7,726,530
Tax Allocation Revenue Bonds, Redevelopment Project,
Series 1999, 5.750%, 10/01/32 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 26.3%
4,000 Foothill/Eastern Transportation Corridor Agency, California, 1/14 at 101.00 BBB- 3,070,400
Toll Road Revenue Refunding Bonds, Series 1999,
0.000%, 1/15/29
8,500 Long Beach, California, Harbor Revenue Bonds, 5/10 at 101.00 AA- 9,530,965
Series 2000A, 5.750%, 5/15/14 (Alternative Minimum Tax)
5,250 Port of Oakland, California, Revenue Bonds, Series 2000K, 5/10 at 100.00 AAA 5,651,310
5.750%, 11/01/29 (Alternative Minimum Tax) - FGIC Insured
5,000 Sacramento County, California, Airport System Revenue 7/06 at 102.00 AAA 5,369,850
Bonds, Series 1996A, 5.900%, 7/01/24 (Alternative
Minimum Tax) - MBIA Insured
San Francisco Airports Commission, California, Revenue Bonds,
San Francisco International Airport, Second Series 2000, Issue 25:
2,515 5.500%, 5/01/24 (Alternative Minimum Tax) - FSA Insured 5/10 at 101.00 AAA 2,636,424
3,100 5.750%, 5/01/30 (Alternative Minimum Tax) - FSA Insured 5/10 at 101.00 AAA 3,334,639
2,500 San Francisco Airports Commission, California, Special 1/08 at 102.00 AAA 2,757,100
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 Airports Commission, California, Revenue 5/10 at 101.00 AAA 1,304,950
Bonds, San Francisco International Airport, Second
Series 2000, Issue 26B, 5.000%, 5/01/21 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED*** - 4.2%
4,000 Pomona, California, GNMA/FHLMC Collateralized Single No Opt. Call AAA 5,373,000
Family Mortgage Revenue Refunding Bonds, Series 1990B,
7.500%, 8/01/23
28
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 9.4%
$ 1,500 California Pollution Control Financing Authority, Revenue 9/09 at 101.00 AAA $ 1,592,685
Refunding Bonds, Southern California Edison Company,
Series 1999A, 5.450%, 9/01/29 - MBIA Insured
492 California Pollution Control Financing Authority, Solid Waste 7/07 at 102.00 N/R 72,592
Disposal Revenue Bonds, CanFibre of Riverside,
Series 1997A, 9.000%, 7/01/19 (Alternative Minimum Tax)#
3,000 California Department of Water Resources, Power Supply 5/12 at 101.00 A2 3,207,540
Revenue Bonds, Series 2002A, 5.125%, 5/01/18
4,500 California Statewide Community Development Authority, 12/04 at 102.00 N/R 3,883,185
Refunding Certificates of Participation, Rio Bravo Fresno
Project, Series 1999A, 6.300%, 12/01/18
500 Los Angeles Department of Water and Power, California, 7/13 at 100.00 AAA 527,540
Power System Revenue Bonds, Series 2003A-2,
5.000%, 7/01/21 - MBIA Insured
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 1,708,905
1,000 6.850%, 9/01/36 9/05 at 102.00 Baa3 1,036,630
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 17.8%
4,000 California Department of Water Resources, Water System 12/11 at 100.00 AA 4,527,280
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 1,199,775
Revenue Bonds, Central Valley Project, Series 2002X,
5.500%, 12/01/17 - FGIC Insured
4,000 Los Angeles, California, Wastewater System Revenue Bonds, 11/04 at 101.00 AAA 4,023,720
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 2,171,720
California, Clean Water Revenue Refunding Bonds,
Series 2003A, 5.250%, 10/01/20 - MBIA Insured
10,000 Santa Maria, California, Subordinate Water and Wastewater 8/12 at 101.00 AAA 10,825,900
Revenue Certificates of Participation, Series 1997A,
5.550%, 8/01/27 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 179,432 Total Long-Term Investments (cost $177,996,560) - 151.2% 193,125,923
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.0% 2,617,398
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (53.2)% (68,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 127,743,321
====================================================================================================================
(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 registered public accounting firm): Dates
(month and year) and prices of the earliest optional
call or redemption. There may be other call provisions
at varying prices at later dates.
** Ratings (not covered by the report of independent
registered public accounting firm): 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.
# 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 the CanFibre
of Riverside assets on behalf of the various Nuveen
Funds. CFRHoldings, Inc. determined that a sale of the
facility was in the best interest of the shareholders
and proceeded accordingly.
N/R Investment is not rated.
See accompanying notes to financial statements.
29
Nuveen California Investment Quality Municipal Fund, Inc. (NQC)
Portfolio of
INVESTMENTS August 31, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 0.4%
$ 1,000 Southern California Tobacco Securitization Authority, 6/12 at 100.00 BBB $ 815,630
Tobacco Settlement Asset-Backed Bonds, Senior Series
2001A, 5.500%, 6/01/36
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 15.7%
5,000 California Educational Facilities Authority, Revenue Bonds, 10/06 at 102.00 AAA 5,071,450
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 3,292,470
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 A- 6,280,140
California State University Projects, Series 1997C,
5.400%, 10/01/22
2,500 Long Beach Bond Financing Authority, California, Lease 11/11 at 101.00 AAA 2,601,650
Revenue 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 9/09 at 101.00 AAA 2,604,033
Facilities, Series 2001E, 5.000%, 9/01/25 - AMBAC Insured
University of California, Revenue Bonds, Multi-Purpose
Projects, Series 2003A:
9,270 5.125%, 5/15/16 - AMBAC Insured 5/13 at 100.00 AAA 10,176,235
3,000 5.125%, 5/15/17 - AMBAC Insured 5/13 at 100.00 AAA 3,276,990
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 12.0%
2,110 California Health Facilities Financing Authority, Revenue 10/08 at 101.00 AAA 2,341,193
Bonds, Kaiser Permanente System, Series 1998B,
5.250%, 10/01/12
3,000 California Health Facilities Financing Authority, Revenue 12/09 at 101.00 A3 3,212,160
Bonds, Cedars-Sinai Medical Center, Series 1999A,
6.125%, 12/01/30
3,000 California Health Facilities Financing Authority, Revenue 7/14 at 100.00 BBB+ 2,945,250
Bonds, Catholic Healthcare West, Series 2004G,
5.250%, 7/01/23
2,145 California Statewide Community Development Authority, No Opt. Call A 2,305,317
Revenue Bonds, Kaiser Permanente System, Series 2002E,
4.700%, 11/01/36 (Mandatory put 6/01/09)
Central California Joint Powers Health Finance Authority,
Certificates of Participation, Community Hospitals of Central
California, Series 1993:
1,750 5.250%, 2/01/13 2/05 at 100.00 Baa2 1,756,353
6,820 5.500%, 2/01/15 2/05 at 100.00 Baa2 6,842,642
5,000 Loma Linda, California, Hospital Revenue Bonds, Loma Linda 12/04 at 101.00 BB+ 5,062,150
University Medical Center, Series 1993A, 6.500%, 12/01/18
1,000 Stockton, California, Health Facility Revenue Bonds, 12/07 at 102.00 BBB+ 1,051,770
Dameron Hospital Association, Series 1997A,
5.700%, 12/01/14
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 3.2%
6,500 California Statewide Community Development Authority, 7/08 at 101.00 BBB 6,882,915
Revenue Refunding Bonds, Irvine Apartment Communities
Development, Series 1998A, 4.900%, 5/15/25 (Mandatory
put 5/15/08)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.4%
2,945 California Statewide Community Development Authority, 4/09 at 101.00 BBB- 2,980,311
Certificates of Participation, Internext Group, Series 1999,
5.375%, 4/01/17
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 25.0%
California, Various Purpose General Obligation Bonds,
Series 2000:
4,075 5.250%, 9/01/20 9/10 at 100.00 A 4,362,736
14,000 5.750%, 3/01/27 - MBIA Insured 3/10 at 101.00 AAA 15,303,540
2,400 California, General Obligation Bonds, Series 2003, 5.250%, 2/01/20 8/13 at 100.00 A 2,575,584
30
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
California, General Obligation Bonds, Series 2004:
$ 1,000 5.000%, 2/01/21 2/14 at 100.00 A $ 1,047,780
3,150 5.250%, 4/01/34 4/14 at 100.00 A 3,250,895
2,395 Fontana Unified School District, San Bernardino County, 5/09 at 102.00 AAA 2,715,667
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 10,534,430
Series 2001A, 5.000%, 9/01/21
2,285 Moreno Valley Unified School District, Riverside County, 8/14 at 100.00 AAA 2,448,195
California, General Obligation Bonds, Series 2004A,
5.250%, 8/01/24 - FSA Insured
1,100 Newhall School District, Los Angeles County, California, 8/12 at 101.00 AAA 1,197,658
General Obligation Bonds, Series 2002B, 5.375%, 8/01/22 -
FSA Insured
3,250 Puerto Rico, Public Improvement General Obligation Refunding No Opt. Call AAA 3,802,923
Bonds, Series 2001A, 5.500%, 7/01/20 - MBIA Insured
1,835 Riverside Community College District, California, General 8/14 at 100.00 AAA 2,000,003
Obligation Bonds, Series 2004A, 5.250%, 8/01/21 -
MBIA Insured
3,500 San Diego Unified School District, San Diego County, 7/13 at 101.00 AAA 3,957,590
California, General Obligation Bonds, Series 2003E,
5.250%, 7/01/24 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 41.3%
4,460 California, Economic Recovery Revenue Bonds, 7/14 at 100.00 AA- 4,920,540
Series 2004A, 5.000%, 7/01/15
3,135 California State Public Works Board, Lease Revenue Bonds, 12/12 at 100.00 AAA 3,460,005
Department of General Services, Capital East End,
Series 2002A, 5.250%, 12/01/15 - AMBAC Insured
3,000 California State Public Works Board, Lease Revenue Bonds, 6/14 at 100.00 A- 3,255,420
Department of Mental Health, Coalinga State Hospital,
Series 2004A, 5.500%, 6/01/20
3,000 California State Public Works Board, Lease Revenue Bonds, 12/11 at 102.00 AAA 3,162,210
Department of Mental Health, Hospital Addition,
Series 2001A, 5.000%, 12/01/21 - AMBAC Insured
2,000 Daly City Housing Development Finance Agency, California, 12/13 at 102.00 A- 2,065,920
Mobile Home Park Revenue Bonds, Franciscan Mobile Home
Park Project, Series 2002A, 5.850%, 12/15/32
1,595 Fontana Public Financing Authority, California, Tax Allocation 9/11 at 101.00 AAA 1,691,753
Revenue Bonds, North Fontana Redevelopment Project,
Series 2003A, 5.375%, 9/01/25 - AMBAC Insured
2,250 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 A- 2,333,160
Enhanced Tobacco Settlement Asset-Backed Bonds,
Series 2003B, 5.625%, 6/01/33
Los Angeles County Metropolitan Transportation Authority,
California, Proposition C Second Senior Lien Sales Tax Revenue
Bonds, Series 2000A:
8,005 5.250%, 7/01/25 - FGIC Insured 7/10 at 101.00 AAA 8,385,478
6,500 5.250%, 7/01/30 - FGIC Insured 7/10 at 101.00 AAA 6,758,440
4,130 Manteca Unified School District, San Joaquin County, 9/11 at 101.00 AAA 4,302,675
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 1,765,846
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 4,100,566
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 4,944,096
County, California, Revenue Refunding Bonds, Redevelopment
Project 1, Series 1995, 7.400%, 8/01/25 - MBIA Insured
1,500 Orange County, California, Special Tax Bonds, Community 8/12 at 101.00 N/R 1,524,210
Facilities District 03-1 of Ladera Ranch, Series 2004A,
5.625%, 8/15/34
9,825 Orange County, California, Recovery Certificates of 7/06 at 102.00 AAA 10,647,156
Participation, Series 1996A, 6.000%, 7/01/26 - MBIA Insured
1,000 Paramount Redevelopment Agency, California, Tax Allocation 8/13 at 100.00 AAA 1,041,200
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 4,155,560
Revenue Bonds, Series 2002D, 5.375%, 7/01/36
31
Nuveen California Investment Quality Municipal Fund, Inc. (NQC) (continued)
Portfolio of INVESTMENTS August 31, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 4,000 Sacramento City Financing Authority, California, Lease No Opt. Call AAA $ 4,586,920
Revenue Refunding Bonds, Series 1993A,
5.400%, 11/01/20 - AMBAC Insured
3,535 San Jose Financing Authority, California, Lease Revenue 9/11 at 100.00 AAA 3,727,127
Refunding Bonds, Convention Center Project, Series 2001F,
5.000%, 9/01/20 - MBIA Insured
2,000 San Jose Financing Authority, California, Lease Revenue 6/12 at 100.00 AAA 2,176,600
Refunding Bonds, Civic Center Project, Series 2002B,
5.250%, 6/01/19 - AMBAC Insured
2,840 Santa Clara Redevelopment Agency, California, Tax Allocation 6/13 at 100.00 AAA 2,955,134
Bonds, Bayshore North Project, Series 2003,
5.000%, 6/01/23 - MBIA Insured
5,250 Santa Cruz County Redevelopment Agency, California, 9/10 at 102.00 AAA 5,535,547
Subordinate Lien Tax Allocation Bonds, Live Oak and Soquel
Community Improvement Projects, Series 2000,
5.250%, 9/01/25 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 28.9%
13,000 Alameda Corridor Transportation Authority, California, 10/09 at 101.00 AAA 13,173,550
Senior Lien Revenue Bonds, Series 1999A, 5.000%, 10/01/29 -
MBIA Insured
Bay Area Toll Authority, California, Revenue Bonds, San
Francisco Bay Area Toll Bridge, Series 2001D:
3,875 5.000%, 4/01/12 4/11 at 100.00 AA 4,249,364
2,605 5.000%, 4/01/16 4/11 at 100.00 AA 2,807,487
6,500 Foothill/Eastern Transportation Corridor Agency, California, 1/14 at 101.00 BBB- 4,989,400
Toll Road Revenue Refunding Bonds, Series 1999,
0.000%, 1/15/29
9,980 Long Beach, California, Harbor Revenue Bonds, Series 2000A, 5/10 at 101.00 AA- 10,448,761
5.500%, 5/15/25 (Alternative Minimum Tax)
9,000 Port of Oakland, California, Revenue Bonds, Series 2000K, 5/10 at 100.00 AAA 9,687,960
5.750%, 11/01/29 (Alternative Minimum Tax) - FGIC Insured
15,000 San Francisco Airports Commission, California, Revenue Bonds, 5/10 at 101.00 AAA 16,135,350
San Francisco International Airport, Second Series 2000,
Issue 24A, 5.750%, 5/01/30 (Alternative Minimum
Tax) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED*** - 3.1%
3,000 California, Various Purpose General Obligation Bonds, 3/05 at 101.00 A*** 3,097,380
Series 1995, 5.750%, 3/01/13 (Pre-refunded to 3/01/05)
795 California Statewide Community Development Authority, No Opt. Call N/R*** 841,897
Certificates of Participation, Insured Hospital Revenue
Refunding Bonds, Triad Healthcare, Series 1992,
6.250%, 8/01/06
2,500 Los Angeles Community Redevelopment Agency, California, 1/05 at 100.00 BBB*** 2,562,725
Tax Allocation Refunding Bonds, Central Business District
Redevelopment Project, Series 1987G, 6.750%, 7/01/10
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 9.4%
California Department of Water Resources, Power Supply
Revenue Bonds, Series 2002A:
3,600 5.375%, 5/01/17 - XLCA Insured 5/12 at 101.00 AAA 3,986,892
6,000 5.125%, 5/01/18 5/12 at 101.00 A2 6,415,080
5,000 Los Angeles Department of Water and Power, California, 7/11 at 100.00 AAA 5,415,550
Power System Revenue Bonds, Series 2001A-1,
5.250%, 7/01/20 - FSA Insured
700 Los Angeles Department of Water and Power, California, 7/13 at 100.00 AAA 738,556
Power System Revenue Bonds, Series 2003A-2,
5.000%, 7/01/21 - MBIA Insured
3,210 Turlock Irrigation District, California, Electric Revenue Bonds, 1/13 at 100.00 AAA 3,474,440
Series 2003A, 5.000%, 1/01/16 - MBIA Insured
32
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 10.1%
$ 4,000 California Department of Water Resources, Water System 12/11 at 100.00 AA $ 4,513,600
Revenue Bonds, Central Valley Project, Series 2001W,
5.500%, 12/01/16
4,000 Los Angeles Department of Water and Power, California, 7/14 at 100.00 AAA 4,411,520
Waterworks Revenue Bonds, Series 2004C, 5.250%, 7/01/19 -
MBIA Insured
2,745 Northridge Water District, California, Revenue Certificates 2/11 at 101.00 AAA 2,927,378
of Participation, Series 2001, 5.250%, 2/01/21 - AMBAC Insured
3,015 Oxnard Financing Authority, California, Wastewater Revenue 6/13 at 100.00 AAA 3,264,491
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 1,350,660
1,310 5.000%, 3/01/17 - FSA Insured 3/12 at 101.00 AAA 1,414,944
3,430 Westlands Water District, California, Revenue Certificates 9/12 at 101.00 AAA 3,680,321
of Participation, Series 2002, 5.250%, 9/01/22 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 301,340 Total Long-Term Investments (cost $300,475,804) - 150.5% 319,778,529
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.2% 4,730,624
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.7)% (112,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 212,509,153
====================================================================================================================
(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 registered public accounting firm): Dates
(month and year) and prices of the earliest optional
call or redemption. There may be other call provisions
at varying prices at later dates.
** Ratings (not covered by the report of independent
registered public accounting firm): 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.
33
Nuveen California Select Quality Municipal Fund, Inc. (NVC)
Portfolio of
INVESTMENTS August 31, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 4.4%
$ 4,625 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 Baa3 $ 3,797,310
Settlement Asset-Backed Bonds, Stanislaus County Tobacco
Funding Corporation, Series 2002A, 5.500%, 6/01/33
9,150 California Pollution Control Financing Authority, Sewerage 12/06 at 101.00 A+ 9,443,440
and Solid Waste Disposal Facilities Revenue Bonds,
Anheuser-Busch Companies Inc., Series 1996,
5.750%, 12/01/30 (Alternative Minimum Tax)
3,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB 2,804,700
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.750%, 6/01/39
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 1.5%
5,125 University of California, Revenue Bonds, Research Facilities, 9/09 at 101.00 AAA 5,308,731
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 10,040,740
Facilities Revenue Bonds, Mobil Oil Corporation, Series 1996,
5.500%, 12/01/29 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 15.6%
1,750 ABAG Finance Authority for Non-Profit Corporations, 4/12 at 100.00 A 1,861,895
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 14,454,720
Bonds, Cedars-Sinai Medical Center, Series 1999A,
6.125%, 12/01/30
545 California Health Facilities Financing Authority, Insured Health 1/05 at 102.00 AAA 549,774
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- 5,161,500
Refunding Certificates of Participation, St. Joseph Health
System, Series 1997, 5.125%, 7/01/17
14,000 California Statewide Community Development Authority, 7/10 at 101.00 BBB+ 15,188,180
Certificates of Participation, Catholic Healthcare West,
Series 1999, 6.500%, 7/01/20
2,000 California Statewide Community Development Authority, No Opt. Call AAA 2,136,040
Revenue Refunding Bonds, Sherman Oaks Health System,
Series 1998A, 5.000%, 8/01/22 - AMBAC Insured
9,350 Loma Linda, California, Hospital Revenue Refunding Bonds, 12/04 at 101.00 AAA 9,672,388
Loma Linda University Medical Center, Series 1993C,
5.375%, 12/01/22 - MBIA Insured
6,000 Madera County, California, Certificates of Participation, 3/05 at 102.00 AAA 6,223,800
Valley Children's Hospital Project, Series 1995,
5.750%, 3/15/28 - MBIA Insured
1,050 Stockton, California, Health Facility Revenue Bonds, 12/07 at 102.00 BBB+ 1,120,718
Dameron Hospital Association, Series 1997A,
5.450%, 12/01/10
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 2.2%
645 California Housing Finance Agency, Single Family Mortgage 5/05 at 102.00 AAA 654,998
Bonds, Senior Series 1995A-2, 6.350%, 8/01/15 (Alternative
Minimum Tax)
255 California Housing Finance Agency, Single Family Mortgage 10/05 at 102.00 AAA 260,921
Bonds, Mezzanine Series 1995B-2, 6.250%, 8/01/14
(Alternative Minimum Tax) - AMBAC Insured
1,440 California Housing Finance Agency, Single Family Mortgage 10/05 at 102.00 AAA 1,452,110
Bonds, Senior Series 1995B-2, 6.250%, 2/01/18 (Alternative
Minimum Tax)
10,395 California Housing Finance Agency, Home Mortgage Revenue 8/10 at 27.19 AAA 1,975,674
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 3,655,479
Mortgage Revenue Bonds, Affordable Housing Mortgage
Subsidy Program, Series 1995-I, 6.250%, 4/01/29
(Alternative Minimum Tax)
34
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 2.8%
$ 4,720 California Pollution Control Financing Authority, Solid Waste No Opt. Call BBB $ 4,768,333
Disposal Revenue Bonds, Waste Management Inc.,
Series 2002B, 4.450%, 7/01/27 (Alternative Minimum
Tax) (Mandatory put 7/01/05)
5,000 California Pollution Control Financing Authority, Solid Waste No Opt. Call BBB+ 5,230,850
Disposal Revenue Bonds, Republic Services Inc.,
Series 2002C, 5.250%, 6/01/23 (Alternative Minimum
Tax) (Mandatory put 12/01/17)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 27.1%
California, Various Purpose General Obligation Bonds,
Series 2000:
4,700 5.625%, 5/01/22 - FGIC Insured 5/10 at 101.00 AAA 5,186,732
10,000 5.750%, 3/01/27 - MBIA Insured 3/10 at 101.00 AAA 10,931,100
California, General Obligation Bonds, Series 2003:
3,750 5.250%, 11/01/19 - RAAI Insured 11/13 at 100.00 AA 4,055,700
3,700 5.250%, 2/01/21 8/13 at 100.00 A 3,950,860
5,000 5.250%, 2/01/22 8/13 at 100.00 A 5,304,800
1,000 5.250%, 2/01/22 - CIFG Insured 8/13 at 100.00 AAA 1,073,920
California, General Obligation Bonds, Series 2004:
3,800 5.000%, 2/01/21 2/14 at 100.00 A 3,981,564
3,700 5.125%, 4/01/25 4/14 at 100.00 A 3,830,166
1,850 5.200%, 4/01/26 4/14 at 100.00 A 1,917,599
1,880 Compton Community College District, Los Angeles County, 7/14 at 100.00 AAA 2,060,593
California, General Obligation Bonds, Series 2004A,
5.250%, 7/01/20 - MBIA Insured
Fontana Unified School District, San Bernardino County,
California, General Obligation Bonds, Series 2004:
1,470 5.250%, 5/01/19 - MBIA Insured 5/14 at 100.00 AAA 1,619,132
1,040 5.250%, 5/01/20 - MBIA Insured 5/14 at 100.00 AAA 1,138,519
5,515 Fresno Unified School District, Fresno County, California, 8/09 at 102.00 AAA 5,782,202
General Obligation Bonds, Series 2001E, 5.000%, 8/01/25 -
FGIC Insured
10,060 Los Angeles, California, General Obligation Bonds, 9/11 at 100.00 AA 10,653,842
Series 2001A, 5.000%, 9/01/20
13,020 Los Angeles Unified School District, California, General 7/08 at 101.00 AAA 13,413,855
Obligation Bonds, Series 1998B, 5.000%, 7/01/23 -
FGIC Insured
6,030 Los Angeles Unified School District, California, General 7/10 at 100.00 AAA 6,333,972
Obligation Bonds, Series 2000D, 5.375%, 7/01/25 -
FGIC Insured
2,200 Oakland Unified School District, Alameda County, California, 8/08 at 101.00 AAA 2,287,978
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 2,415,121
California, General Obligation Bonds, Series 2003,
5.000%, 8/01/20 - FSA Insured
5,000 Puerto Rico, Public Improvement General Obligation Refunding No Opt. Call AAA 5,850,650
Bonds, Series 2001A, 5.500%, 7/01/20 - MBIA Insured
2,000 West Contra Costa Unified School District, Contra Costa 8/11 at 101.00 AAA 2,093,720
County, California, General Obligation Bonds, Series 2003C,
5.000%, 8/01/22 - FGIC Insured
3,760 West Contra Costa Unified School District, Contra Costa 8/11 at 101.00 AAA 3,936,194
County, California, General Obligation Bonds, Series 2003B,
5.000%, 8/01/22 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 28.5%
2,870 Bell Community Redevelopment Agency, California, Tax 10/13 at 100.00 AA 3,055,517
Allocation Bonds, Bell Project Area, Series 2003,
5.500%, 10/01/23 - RAAI Insured
7,390 California, Economic Recovery Revenue Bonds, 7/14 at 100.00 AA- 8,153,091
Series 2004A, 5.000%, 7/01/15
3,765 California State Public Works Board, Lease Revenue Bonds, 12/12 at 100.00 AAA 4,135,702
Department of General Services, Capital East End,
Series 2002A, 5.250%, 12/01/16 - AMBAC Insured
California State Public Works Board, Lease Revenue Bonds,
Department of Mental Health, Coalinga State Hospital, Series 2004A:
4,000 5.500%, 6/01/21 6/14 at 100.00 A- 4,314,240
2,000 5.500%, 6/01/23 6/14 at 100.00 A- 2,124,640
35
Nuveen California Select Quality Municipal Fund, Inc. (NVC) (continued)
Portfolio of INVESTMENTS August 31, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
Golden State Tobacco Securitization Corporation, California,
Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2003B:
$ 2,000 5.625%, 6/01/33 6/13 at 100.00 A- $ 2,073,920
2,500 5.625%, 6/01/38 6/13 at 100.00 A- 2,588,825
3,000 La Quinta Redevelopment Agency, California, Tax Allocation 9/11 at 102.00 AAA 3,161,070
Bonds, Redevelopment Project Area 1, Series 2001,
5.000%, 9/01/21 - AMBAC Insured
3,510 Long Beach Bond Financing Authority, California, Lease 10/07 at 102.00 AAA 3,548,294
Revenue 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 16,900,620
California, Second Senior Lien Proposition C Sales Tax
Revenue Refunding Bonds, Series 1998A, 5.000%, 7/01/23 -
AMBAC Insured
3,000 Los Angeles County Metropolitan Transportation Authority, 7/10 at 101.00 AAA 3,142,590
California, Second Senior Lien Proposition C Sales Tax
Revenue Bonds, Series 2000A, 5.250%, 7/01/25 -
FGIC Insured
4,750 Montclair Redevelopment Agency, California, Revenue Bonds, 12/10 at 102.00 N/R 4,710,623
Monterey Manor Mobile Home Estates Project, Series 2000,
6.400%, 12/15/30
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 2,184,498
3,000 5.000%, 8/01/26 - MBIA Insured 8/11 at 100.00 Aaa 3,048,090
2,580 Oakland Redevelopment Agency, California, Subordinate 3/13 at 100.00 AAA 2,875,229
Lien 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 3,702,479
Bonds, Elihu M. Harris State Office Building, Series 1998A,
5.000%, 4/01/23 - AMBAC Insured
2,280 Ontario Redevelopment Financing Authority, California, 8/11 at 101.00 AAA 2,475,898
Lease Revenue Bonds, Capital Projects, Series 2001,
5.250%, 8/01/18 - AMBAC Insured
1,000 Orange County, California, Special Tax Bonds, Community 8/12 at 101.00 N/R 1,015,870
Facilities District 03-1 of Ladera Ranch, Series 2004A,
5.500%, 8/15/24
130 Riverside Public Financing Authority, California, Revenue 2/05 at 100.00 N/R 131,794
Bonds, Multiple Project Loans, Series 1991A,
8.000%, 2/01/18
2,000 San Francisco State Building Authority, California, Lease 12/06 at 102.00 AAA 2,158,320
Revenue Bonds, San Francisco Civic Center Complex,
Series 1996A, 5.250%, 12/01/16 - AMBAC Insured
10,000 San Jose Redevelopment Agency, California, Tax Allocation 8/08 at 102.00 A 10,156,900
Bonds, Merged Area Redevelopment Project, Series 1998,
5.250%, 8/01/29
2,200 San Jose Financing Authority, California, Lease Revenue 9/11 at 100.00 AAA 2,319,570
Refunding 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 4,986,351
Bonds, Bayshore North Project, Series 2003, 5.000%, 6/01/17 -
MBIA Insured
Solano County, California, Certificates of Participation,
Series 2002:
2,415 5.250%, 11/01/22 - MBIA Insured 11/12 at 100.00 AAA 2,568,884
1,625 5.250%, 11/01/23 - MBIA Insured 11/12 at 100.00 AAA 1,719,380
5,000 West Hollywood, California, Refunding Certificates of 2/08 at 102.00 AAA 5,081,550
Participation, Series 1998, 5.000%, 2/01/25 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 18.7%
10,500 Foothill/Eastern Transportation Corridor Agency, California, 1/14 at 101.00 BBB- 8,059,800
Toll Road Revenue Refunding Bonds, Series 1999,
0.000%, 1/15/29
8,300 Foothill/Eastern Transportation Corridor Agency, California, 1/10 at 100.00 AAA 8,363,163
Toll 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 8,070,000
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 1,607,730
John Wayne Airport, Series 2003, 5.000%, 7/01/18 -
FSA Insured
2,000 Orange County Transportation Authority, California, Toll Road 8/13 at 100.00 AAA 2,128,340
Revenue Bonds, 91 Express Lanes Project, Series 2003A,
5.000%, 8/15/20 - AMBAC Insured
36
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION (continued)
$ 8,000 Port of Oakland, California, Revenue Bonds, Series 2000K, 5/10 at 100.00 AAA $ 8,611,520
5.750%, 11/01/29 (Alternative Minimum Tax) - FGIC Insured
20,000 San Francisco Airports Commission, California, Revenue 5/10 at 101.00 AAA 21,513,800
Bonds, San Francisco International Airport, Second
Series 2000, Issue 25, 5.750%, 5/01/30 (Alternative
Minimum Tax) - FSA Insured
5,000 San Francisco Airports Commission, California, Revenue 5/11 at 100.00 AAA 5,433,600
Refunding Bonds, San Francisco International Airport,
Second Series 2001, Issue 27B, 5.250%, 5/01/18 -
FGIC Insured
3,665 San Francisco Airports Commission, California, Revenue 5/12 at 100.00 AAA 3,883,984
Refunding Bonds, San Francisco International Airport,
Second Series 2002, Issue 28A, 5.250%, 5/01/18 (Alternative
Minimum Tax) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED*** - 9.8%
3,000 California Pollution Control Financing Authority, Solid Waste 11/04 at 100.00 Aaa 3,457,350
Disposal 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 A3*** 1,569,435
California State University System, Series 1995A,
6.000%, 9/01/15 (Pre-refunded to 9/01/05)
2,110 Contra Costa County, California, GNMA Mortgage-Backed 5/05 at 100.00 AAA 2,437,556
Securities Program, Home Mortgage Revenue Bonds,
Series 1989, 7.700%, 11/01/09 (Alternative Minimum Tax)
4,000 Los Angeles County Public Works Financing Authority, 10/04 at 102.00 Aa3*** 4,096,080
California, Revenue Bonds, Regional Park and Open Space
District, Series 1994A, 6.000%, 10/01/15 (Pre-refunded
to 10/01/04)
Southern California Metropolitan Water District, Water
Revenue Bonds, Series 1997A:
2,105 5.000%, 7/01/26 (Pre-refunded to 1/01/08) 1/08 at 101.00 AAA 2,321,184
1,220 5.000%, 7/01/26 (Pre-refunded to 1/01/08) 1/08 at 101.00 AAA 1,345,294
1,705 Palm Springs Financing Authority, California, Tax Allocation 8/05 at 100.00 N/R*** 1,790,557
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*** 11,727,900
Revenue Bonds, Series 2000B, 6.000%, 7/01/31 (Pre-refunded
to 7/01/10)
4,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 4,324,280
Obligation Bonds, Series 2000A, 5.500%, 10/01/32
2,000 Vista, California, Mobile Home Park Revenue Bonds, Vista 3/09 at 102.00 N/R*** 2,231,700
Manor Mobile Home Park Project, Series 1999A,
5.750%, 3/15/29 (Pre-refunded to 3/15/24 at 100)
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 20.6%
2,000 Anaheim Public Finance Authority, California, Revenue 10/12 at 100.00 AAA 2,199,700
Refunding Bonds, Electric Generating System, Series 2002B,
5.250%, 10/01/18 - FSA Insured
1,810 Anaheim Public Finance Authority, California, Second Lien 10/14 at 100.00 AAA 1,965,624
Electric Distribution Revenue Bonds, Series 2004,
5.250%, 10/01/21 - MBIA Insured
10,350 California Pollution Control Financing Authority, Revenue No Opt. Call A+ 11,815,146
Bonds, San Diego Gas and Electric Company, Series 1991A,
6.800%, 6/01/15 (Alternative Minimum Tax)
9,550 California Pollution Control Financing Authority, Revenue 12/04 at 100.00 A3 9,569,100
Bonds, Southern California Edison Company, Series 1991,
6.900%, 12/01/17 (Alternative Minimum Tax)
California Department of Water Resources, Power Supply
Revenue Bonds, Series 2002A:
2,500 5.375%, 5/01/17 - XLCA Insured 5/12 at 101.00 AAA 2,768,675
9,750 5.125%, 5/01/18 5/12 at 101.00 A2 10,424,505
4,000 Imperial Irrigation District, California, Certificates of 11/13 at 100.00 AAA 4,271,080
Participation, Electric System Revenue Bonds,
Series 2003, 5.250%, 11/01/23 - FSA Insured
5,000 Los Angeles Department of Water and Power, California, 7/11 at 100.00 AAA 5,485,850
Power System Revenue Refunding Bonds, Series 2001A-2,
5.375%, 7/01/20 - MBIA Insured
1,200 Los Angeles Department of Water and Power, California, 7/13 at 100.00 AAA 1,266,096
Power System Revenue Bonds, Series 2003A-2,
5.000%, 7/01/21 - MBIA Insured
5,225 Los Angeles, California, Revenue Bonds, Sanitation 2/11 at 100.00 AAA 5,727,436
Equipment Charge, Series 2001A, 5.250%, 2/01/18 -
FSA Insured
7,000 Merced Irrigation District, California, Revenue Refunding 9/05 at 102.00 Baa3 7,256,410
Bonds, Electric System Project, Series 2001, 6.850%, 9/01/36
37
Nuveen California Select Quality Municipal Fund, Inc. (NVC) (continued)
Portfolio of INVESTMENTS August 31, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES (continued)
$ 4,360 Sacramento Municipal Utility District, California, Electric 8/12 at 100.00 AAA $ 4,769,186
Revenue Refunding Bonds, Series 2002Q, 5.250%, 8/15/19 -
FSA Insured
3,460 Southern California Public Power Authority, Revenue Bonds, 7/13 at 100.00 AAA 3,663,621
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 3,334,849
Series 2003A, 5.000%, 1/01/15 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 13.1%
7,000 Los Angeles, California, Wastewater System Revenue Bonds, 6/08 at 101.00 AAA 7,081,410
Series 1998A, 5.000%, 6/01/28 - FGIC Insured
1,075 Southern California Metropolitan Water District, Water 1/08 at 101.00 AA 1,089,233
Revenue Bonds, Series 1997A, 5.000%, 7/01/26
2,525 Sacramento County Sanitation District Financing Authority, No Opt. Call AAA 2,926,475
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 18,243,215
California, Water Revenue Bonds, Series 2001A,
5.000%, 11/01/24 - FSA Insured
San Francisco City and County Public Utilities Commission,
California, Clean Water Revenue Refunding Bonds, Series 2003A:
2,120 5.250%, 10/01/19 - MBIA Insured 4/13 at 100.00 AAA 2,314,870
2,960 5.250%, 10/01/20 - MBIA Insured 4/13 at 100.00 AAA 3,214,146
Sweetwater Authority, California, Water Revenue Bonds,
Series 2002:
2,800 5.500%, 4/01/19 - FSA Insured 4/10 at 101.00 AAA 3,114,690
9,055 5.000%, 4/01/22 - FSA Insured 4/10 at 101.00 AAA 9,417,381
------------------------------------------------------------------------------------------------------------------------------------
$ 512,750 Total Long-Term Investments (cost $498,424,386) - 147.1% 530,806,436
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 6.1% 22,131,255
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (53.2)% (192,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 360,937,691
====================================================================================================================
(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 registered public accounting firm): Dates
(month and year) and prices of the earliest optional
call or redemption. There may be other call provisions
at varying prices at later dates.
** Ratings (not covered by the report of independent
registered public accounting firm): 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.
38
Nuveen California Quality Income Municipal Fund, Inc. (NUC)
Portfolio of
INVESTMENTS August 31, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 6.5%
$ 4,620 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 Baa3 $ 3,793,205
Settlement Asset-Backed Bonds, Stanislaus County Tobacco
Funding Corporation, Series 2002A, 5.500%, 6/01/33
7,325 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 Baa3 6,062,829
Settlement Asset-Backed Bonds, Sonoma County Tobacco
Funding Corporation, Series 2002B, 5.500%, 6/01/30
5,000 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 Baa3 4,329,450
Settlement Asset-Backed Bonds, Alameda County Tobacco
Asset Securitization Corporation, Series 2002,
5.750%, 6/01/29
9,320 California Statewide Financing Authority, Tobacco Settlement 5/12 at 100.00 Baa3 8,023,029
Asset-Backed Bonds, Pooled Tobacco Securitization Program,
Series 2002A, 5.625%, 5/01/29
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 16.3%
8,975 California Educational Facilities Authority, Revenue Bonds, 11/10 at 100.00 Aaa 9,849,973
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 4,284,840
Bonds, Community Colleges Projects, Series 1996B,
5.625%, 3/01/19 - AMBAC Insured
6,400 California State University, Systemwide Revenue Bonds, 11/12 at 100.00 AAA 6,770,944
Series 2002A, 5.000%, 11/01/20 - AMBAC Insured
1,000 California Statewide Community Development Authority, 4/06 at 101.00 AAA 1,065,940
Auxiliary Organization Revenue Certificates of Participation,
University Corporation - California State University -
Northridge, Series 1996, 6.000%, 4/01/26 - AMBAC Insured
1,615 University of California, Certificates of Participation, 1/10 at 101.00 Aa2 1,704,552
San Diego 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 7,726,575
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 2,387,634
5,150 5.000%, 9/01/24 - AMBAC Insured 9/09 at 101.00 AAA 5,313,564
University of California, Revenue Bonds, Multi-Purpose Projects,
Series 2002O:
5,265 5.000%, 9/01/18 - FGIC Insured 9/10 at 101.00 AAA 5,628,232
10,255 5.000%, 9/01/19 - FGIC Insured 9/10 at 101.00 AAA 10,847,124
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 11.6%
1,750 ABAG Finance Authority for Non-Profit Corporations, 4/12 at 100.00 A 1,861,895
California, 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 11,135,488
7,700 6.250%, 12/01/34 12/09 at 101.00 A3 8,262,408
4,000 California Health Facilities Financing Authority, Insured Health 11/04 at 101.00 A 4,051,120
Facility Revenue Refunding Bonds, Valley Memorial Hospital,
Series 1993A, 6.000%, 5/01/17
California Statewide Community Development Authority,
Certificates of Participation, Cedars-Sinai Medical Center,
Series 1992:
1,160 6.500%, 8/01/12 No Opt. Call A3 1,313,271
4,140 6.500%, 8/01/15 2/05 at 100.00 A3 4,154,945
5,355 California Statewide Community Development Authority, No Opt. Call A 5,755,233
Revenue 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 12/04 at 101.00 BB+ 3,148,657
University Medical Center, Series 1993A, 6.500%, 12/01/18
39
Nuveen California Quality Income Municipal Fund, Inc. (NUC) (continued)
Portfolio of INVESTMENTS August 31, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 3.0%
$ 5,250 California Housing Finance Agency, Multi-Unit Rental Housing 2/05 at 100.00 Aa3 $ 5,257,823
Revenue Bonds, Series 1992B-II, 6.700%, 8/01/15
1,000 California Statewide Community Development Authority, 7/08 at 101.00 BBB 1,058,170
Revenue Refunding Bonds, Irvine Apartment Communities
Development, Series 1998A, 5.100%, 5/15/25 (Mandatory
put 5/17/10)
1,770 Stanton, California, Multifamily Housing Revenue Bonds, 8/07 at 102.00 AAA 1,899,228
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:
865 6.900%, 11/01/08 11/04 at 101.00 Aa2 875,968
1,030 7.000%, 11/01/14 11/04 at 101.00 Aa2 1,042,175
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.6%
10,370 California Housing Finance Agency, Home Mortgage Revenue 8/10 at 27.19 AAA 1,970,922
Bonds, Series 2000T, 0.000%, 2/01/32 (Alternative
Minimum Tax) - MBIA Insured
180 Riverside County, California, GNMA Mortgage-Backed No Opt. Call AAA 181,750
Securities Program, Single Family Mortgage Revenue
Bonds, Series 1989B, 7.600%, 11/01/19 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 25.4%
1,900 Azusa Unified School District, Los Angeles County, California, 7/12 at 100.00 AAA 2,073,432
General Obligation Bonds, Series 2002, 5.375%, 7/01/20 -
FSA Insured
13,665 California, General Obligation Veterans Welfare Bonds, 12/04 at 101.00 A 13,732,095
Series 1997BH, 5.600%, 12/01/32 (Alternative Minimum Tax)
1,500 California, Various Purpose General Obligation Bonds, 6/10 at 100.00 A 1,601,670
Series 2000, 5.500%, 6/01/25
6,085 California, General Obligation Veterans Welfare Bonds, 12/06 at 102.00 A 6,207,430
Series 1997BJ, 5.700%, 12/01/32 (Alternative
Minimum Tax)
2,000 California, General Obligation Refunding Bonds, Series 2002, 4/12 at 100.00 A 2,055,160
5.250%, 4/01/32
7,500 California, Various Purpose General Obligation Bonds, 6/11 at 100.00 A 7,794,075
Series 2001, 5.125%, 6/01/22
California, General Obligation Bonds, Series 2003:
3,750 5.250%, 11/01/19 - RAAI Insured 11/13 at 100.00 AA 4,055,700
500 5.250%, 2/01/33 2/13 at 100.00 A 514,535
6,300 California, General Obligation Bonds, Series 2004, 4/14 at 100.00 A 6,530,202
5.200%, 4/01/26
5,440 Coast Community College District, Orange County, California, 8/13 at 100.00 AAA 5,721,411
General Obligation Refunding Bonds, Series 2003A,
5.000%, 8/01/22 - MBIA Insured
1,615 Compton Unified School District, Los Angeles County, 9/13 at 100.00 AAA 1,788,532
California, General Obligation Bonds, Series 2003A,
5.375%, 9/01/19 - MBIA Insured
1,200 Fremont Union High School District, Santa Clara County, 9/12 at 100.00 AAA 1,284,432
California, General Obligation Bonds, Series 2002C,
5.000%, 9/01/18 - FSA Insured
1,370 Fremont-Newark Community College District, Alameda 8/11 at 101.00 AAA 1,492,779
County, California, General Obligation Bonds, Series 2002A,
5.375%, 8/01/20 - MBIA Insured
5,255 Livermore Valley Joint Unified School District, Alameda 8/11 at 100.00 AAA 5,418,220
County, 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 2,100,820
Obligation Bonds, Series 2000D, 5.375%, 7/01/25 -
FGIC Insured
1,170 Los Angeles Unified School District, California, General 7/13 at 100.00 AAA 1,267,601
Obligation Bonds, Series 2003F, 5.000%, 7/01/17 -
FSA Insured
2,375 Moreno Valley Unified School District, Riverside County, 8/14 at 100.00 AAA 2,544,623
California, General Obligation Bonds, Series 2004A,
5.250%, 8/01/24 - FSA Insured
6,760 San Diego Unified School District, San Diego County, 7/13 at 101.00 AAA 7,643,802
California, General Obligation Bonds, Series 2003E,
5.250%, 7/01/21 - FSA Insured
6,865 San Ramon Valley Unified School District, Contra Costa 8/13 at 100.00 AAA 7,178,730
County, California, General Obligation Bonds, Series 2003,
5.000%, 8/01/23 - FSA Insured
40
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 1,390 South Pasadena Unified School District, Los Angeles 8/13 at 100.00 AAA $ 1,461,905
County, California, General Obligation Bonds, Series 2003A,
5.000%, 8/01/22 - FGIC Insured
3,925 West Contra Costa Unified School District, Contra Costa 8/11 at 101.00 AAA 4,087,495
County, California, General Obligation Bonds, Series 2003B,
5.000%, 8/01/23 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 40.8%
1,200 Burbank Public Financing Authority, California, Revenue 12/12 at 100.00 AAA 1,266,792
Bonds, West Olive Redevelopment Project, Series 2002,
5.125%, 12/01/22 - AMBAC Insured
7,160 California, Economic Recovery Revenue Bonds, 7/14 at 100.00 AA- 7,899,342
Series 2004A, 5.000%, 7/01/15
3,070 California State Public Works Board, Lease Revenue Bonds, 12/12 at 100.00 AAA 3,372,272
Department of General Services, Capital East End,
Series 2002A, 5.250%, 12/01/16 - AMBAC Insured
5,115 California State Public Works Board, Lease Revenue Bonds, 6/14 at 100.00 A- 5,550,491
Department of Mental Health, Coalinga State Hospital,
Series 2004A, 5.500%, 6/01/20
2,000 California State Public Works Board, Lease Revenue No Opt. Call AAA 2,262,340
Bonds, Department of Corrections, Susanville State
Prison, 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 2,165,259
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 1,980,195
Department of Corrections, Series 1993E, 5.500%, 6/01/15 -
MBIA Insured
Commerce Community Development Commission, California, Tax
Allocation Refunding Bonds, Merged Area Development Projects 2
and 3, Series 1998A:
1,000 5.650%, 8/01/18 8/08 at 102.00 N/R 1,032,530
2,765 5.700%, 8/01/28 8/08 at 102.00 N/R 2,786,208
3,065 Corona-Norco Unified School District, Riverside County, 9/13 at 100.00 AAA 3,286,262
California, Special Tax Bonds, Community Facilities
District 98-1, Series 2003, 5.500%, 9/01/33 - 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 2,069,169
2,040 5.000%, 7/01/19 - AMBAC Insured 7/09 at 102.00 AAA 2,159,320
2,145 5.000%, 7/01/20 - AMBAC Insured 7/09 at 102.00 AAA 2,262,975
3,000 Daly City Housing Development Finance Agency, California, 12/13 at 102.00 A- 3,098,880
Mobile Home Park Revenue Bonds, Franciscan Mobile Home
Park Project, Series 2002A, 5.850%, 12/15/32
2,725 Fresno, California, Certificates of Participation, Street 12/04 at 100.00 A+ 2,756,556
Improvement Project, Series 1991, 6.625%, 12/01/11
Golden State Tobacco Securitization Corporation, California,
Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2003B:
5,000 5.625%, 6/01/33 6/13 at 100.00 A- 5,184,800
2,500 5.625%, 6/01/38 6/13 at 100.00 A- 2,588,825
1,910 Industry Urban Development Agency, California, Tax Allocation 5/07 at 101.50 AAA 2,081,690
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, 3/08 at 102.00 N/R 2,241,948
Meadows Mobile Home Park, Series 1998A, 5.700%, 3/01/18
1,350 Los Angeles Community Redevelopment Agency, California, 3/13 at 100.00 BBB- 1,364,566
Subordinate Lien Tax Allocation Bonds, Bunker Hill
Redevelopment Project, Series 2004L, 5.100%, 3/01/19
8,000 Los Angeles County Metropolitan Transportation Authority, 7/10 at 101.00 AAA 8,380,240
California, Proposition C Second Senior Lien Sales Tax
Revenue Bonds, Series 2000A, 5.250%, 7/01/25 - FGIC Insured
4,850 Los Angeles County Metropolitan Transportation Authority, 7/13 at 100.00 AAA 5,281,117
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 3,148,819
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 14,542,886
Bonds, Elihu M. Harris State Office Building, Series 1998A,
5.000%, 4/01/23 - AMBAC Insured
41
Nuveen California Quality Income Municipal Fund, Inc. (NUC) (continued)
Portfolio of INVESTMENTS August 31, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 2,470 Oceanside, California, Mobile Home Park Revenue Bonds, 3/08 at 102.00 N/R $ 2,286,899
Laguna Vista Mobile Estates Acquisition Project,
Series 1998, 5.800%, 3/01/28
15,300 Ontario Redevelopment Financing Authority, San Bernardino No Opt. Call AAA 21,012,408
County, California, Revenue Refunding Bonds, Redevelopment
Project 1, Series 1995, 7.400%, 8/01/25 - MBIA Insured
5,200 Orange County, California, Recovery Certificates of 7/06 at 102.00 AAA 5,635,136
Participation, Series 1996A, 6.000%, 7/01/26 - MBIA Insured
2,500 Puerto Rico Highway and Transportation Authority, Highway 7/12 at 100.00 A 2,597,225
Revenue Bonds, Series 2002D, 5.375%, 7/01/36
Redding Redevelopment Agency, California, Tax Allocation
Bonds, Canby-Hilltop-Cypress Area Project, Series 2003A:
1,500 5.000%, 9/01/17 - MBIA Insured 9/13 at 100.00 AAA 1,627,200
1,500 5.000%, 9/01/20 - MBIA Insured 9/13 at 100.00 AAA 1,596,690
4,320 Richmond Joint Powers Financing Authority, California, 9/13 at 100.00 AAA 4,554,360
Tax Allocation Bonds, Series 2003A, 5.250%, 9/01/22 -
MBIA Insured
3,040 Riverside County, California, Mobile Home Park Revenue 3/09 at 102.00 N/R 2,727,032
Bonds, Bravo Mobile Home Park Project, Series 1999A,
5.900%, 3/20/29
2,500 San Jose Financing Authority, California, Lease Revenue 9/11 at 100.00 AAA 2,635,875
Refunding Bonds, Convention Center Project, Series 2001F,
5.000%, 9/01/20 - MBIA Insured
2,000 San Jose Unified School District, Santa Clara County, 6/07 at 101.00 AAA 2,185,200
California, Certificates of Participation, Series 1999,
5.750%, 6/01/24 - MBIA Insured
2,770 Santa Ana Community Redevelopment Agency, Orange 9/13 at 100.00 AAA 2,952,848
County, California, Tax Allocation Refunding Bonds, South
Main Street Redevelopment, Series 2003B,
5.000%, 9/01/19 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 12.8%
11,000 Foothill/Eastern Transportation Corridor Agency, California, 1/14 at 101.00 BBB- 8,443,600
Toll Road Revenue Refunding Bonds, Series 1999,
0.000%, 1/15/29
2,000 Orange County Transportation Authority, California, Toll Road 8/13 at 100.00 AAA 2,128,340
Revenue Bonds, 91 Express Lanes Project, Series 2003A,
5.000%, 8/15/20 - AMBAC Insured
2,685 Sacramento County, California, Airport System Revenue 7/12 at 100.00 AAA 2,872,306
Bonds, Series 2002A, 5.250%, 7/01/21 - FSA Insured
20,000 San Francisco Airports Commission, California, Revenue 5/10 at 101.00 AAA 21,513,800
Bonds, San Francisco International Airport, Second
Series 2000, Issue 25, 5.750%, 5/01/30 (Alternative
Minimum Tax) - FSA Insured
San Francisco Airports Commission, California, Revenue Refunding
Bonds, San Francisco International Airport, Second Series 2002,
Issue 28A:
1,480 5.250%, 5/01/17 (Alternative Minimum Tax) - MBIA Insured 5/12 at 100.00 AAA 1,576,378
3,865 5.250%, 5/01/19 (Alternative Minimum Tax) - MBIA Insured 5/12 at 100.00 AAA 4,075,295
3,000 San Francisco Airports Commission, California, Revenue 5/12 at 100.00 AAA 3,191,340
Refunding Bonds, San Francisco International Airport,
Second Series 2002, Issue 28B, 5.250%, 5/01/22 -
MBIA Insured
42
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED*** - 15.0%
$ 8,000 California Pollution Control Financing Authority, Solid Waste 11/04 at 100.00 Aaa $ 9,219,600
Disposal Revenue Bonds, North County Recycling Center,
Series 1991A, 6.750%, 7/01/17
1,100 California Statewide Community Development Authority, No Opt. Call N/R*** 1,164,889
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 18,443,042
Securities Program, Home Mortgage Revenue Bonds,
Series 1988, 8.250%, 6/01/21 (Alternative Minimum Tax)
5,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 5,405,350
Obligation Bonds, Series 2000A, 5.500%, 10/01/32
13,525 San Bernardino County, California, GNMA Mortgage-Backed No Opt. Call AAA 17,040,553
Securities Program, Single Family Home Mortgage Revenue
Bonds, Series 1989A, 7.750%, 11/01/14 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 13.6%
10,000 California Pollution Control Financing Authority, Revenue 12/04 at 100.00 A3 10,020,000
Bonds, Southern California Edison Company, Series 1991,
6.900%, 12/01/17 (Alternative Minimum Tax)
California Department of Water Resources, Power Supply
Revenue Bonds, Series 2002A:
2,500 5.375%, 5/01/17 - XLCA Insured 5/12 at 101.00 AAA 2,768,675
9,000 5.125%, 5/01/18 5/12 at 101.00 A2 9,622,620
1,200 Los Angeles Department of Water and Power, California, 7/13 at 100.00 AAA 1,266,096
Power System Revenue Bonds, Series 2003A-2,
5.000%, 7/01/21 - MBIA Insured
1,500 Merced Irrigation District, California, Revenue Refunding 9/05 at 102.00 Baa3 1,552,995
Bonds, Electric System Project, Series 2001,
6.500%, 9/01/22
5,000 Merced Irrigation District, California, Revenue Certificates 9/13 at 102.00 Baa3 5,103,650
of Participation, Electric System Project, Series 2003,
5.700%, 9/01/36
2,480 Redlands, California, Refunding Certificates of Participation, 9/04 at 100.00 AAA 2,491,011
Capital Improvement Projects, Series 1992,
6.800%, 3/01/07 - AMBAC Insured
2,410 Sacramento Municipal Utility District, California, Electric 8/12 at 100.00 AAA 2,585,472
Revenue Refunding Bonds, Series 2002Q,
5.250%, 8/15/21 - FSA Insured
5,500 Southern California Public Power Authority, Revenue Bonds, No Opt. Call A 6,561,115
Multiple Projects, Series 1989, 6.750%, 7/01/11
4,000 Southern California Public Power Authority, Revenue Bonds, 7/13 at 100.00 AAA 4,235,400
Magnolia Power Project, Series 2003-1A, 5.000%, 7/01/20 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 6.5%
7,040 California Statewide Community Development Authority, 10/13 at 101.00 AAA 7,513,933
Water and Wastewater Revenue Bonds, Pooled Financing
Program, Series 2004A, 5.250%, 10/01/24 - FSA Insured
Goleta Water District, California, Revenue Refunding
Certificates of Participation, Series 2003:
1,000 5.250%, 12/01/20 - MBIA Insured 12/13 at 100.00 AAA 1,088,930
1,440 5.250%, 12/01/21 - MBIA Insured 12/13 at 100.00 AAA 1,558,829
1,205 5.250%, 12/01/22 - MBIA Insured 12/13 at 100.00 AAA 1,297,725
1,090 Marin Municipal Water District, California, Water Revenue 7/12 at 100.00 AAA 1,177,462
Refunding Bonds, Series 2002, 5.000%, 7/01/16 -
AMBAC Insured
500 Norco, California, Refunding Certificates of Participation, 10/08 at 102.00 AAA 510,180
Water and Sewerage System Improvement Project,
Series 1998, 5.125%, 10/01/28 - AMBAC Insured
43
Nuveen California Quality Income Municipal Fund, Inc. (NUC) (continued)
Portfolio of INVESTMENTS August 31, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 5,375 San Francisco City and County Public Utilities Commission, 11/12 at 100.00 AAA $ 5,717,173
California, Water Revenue Bonds, Series 2002A,
5.000%, 11/01/19 - MBIA Insured
Turlock Public Finance Authority, California, Sewerage
Revenue Bonds, Series 2003A:
1,565 5.000%, 9/15/19 - FGIC Insured No Opt. Call AAA 1,675,954
1,650 5.000%, 9/15/20 - FGIC Insured 9/13 at 100.00 AAA 1,756,706
------------------------------------------------------------------------------------------------------------------------------------
$ 495,475 Total Long-Term Investments (cost $489,135,879) - 152.1% 518,464,367
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.2% 7,408,976
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (54.3)% (185,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 340,873,343
====================================================================================================================
(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 registered public accounting firm): Dates
(month and year) and prices of the earliest optional
call or redemption. There may be other call provisions
at varying prices at later dates.
** Ratings (not covered by the report of independent
registered public accounting firm): 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.
44
Statement of
ASSETS AND LIABILITIES August 31, 2004
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 $237,126,678, $287,077,950,
$177,996,560, $300,475,804,
$498,424,386 and $489,135,879,
respectively) $254,722,417 $303,455,187 $193,125,923 $319,778,529 $530,806,436 $518,464,367
Cash 1,684,124 38,370 399,012 129,447 1,902,070 183,118
Receivables:
Interest 3,358,913 4,027,222 2,353,357 4,818,580 7,102,993 7,575,197
Investments sold -- -- -- -- 13,574,189 --
Other assets 6,783 23,834 12,466 24,144 26,066 34,772
------------------------------------------------------------------------------------------------------------------------------------
Total assets 259,772,237 307,544,613 195,890,758 324,750,700 553,411,754 526,257,454
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Payable for investments purchased 2,027,720 -- -- -- -- --
Accrued expenses:
Management fees 120,636 163,997 105,220 172,995 291,898 277,943
Other 73,537 58,947 32,410 63,030 149,915 86,833
Preferred share dividends payable N/A 14,774 9,807 5,522 32,250 19,335
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 2,221,893 237,718 147,437 241,547 474,063 384,111
------------------------------------------------------------------------------------------------------------------------------------
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 $257,550,344 $201,306,895 $127,743,321 $212,509,153 $360,937,691 $340,873,343
====================================================================================================================================
Common shares outstanding 25,241,808 12,965,742 8,154,681 13,580,232 23,096,654 21,999,728
====================================================================================================================================
Net asset value per Common share
outstanding (net assets
applicable to Common
shares, divided by
Common shares outstanding) $ 10.20 $ 15.53 $ 15.67 $ 15.65 $ 15.63 $ 15.49
====================================================================================================================================
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 $ 219,997
Paid-in surplus 237,577,056 181,322,480 113,661,742 189,659,207 322,047,029 306,481,101
Undistributed net
investment income 107,479 1,404,796 1,403,870 1,889,978 4,251,091 3,033,040
Accumulated net realized
gain (loss)
from investments 2,017,652 2,072,725 (2,533,201) 1,521,441 2,026,554 1,810,717
Net unrealized appreciation
of investments 17,595,739 16,377,237 15,129,363 19,302,725 32,382,050 29,328,488
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to
Common shares $257,550,344 $201,306,895 $127,743,321 $212,509,153 $360,937,691 $340,873,343
====================================================================================================================================
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.
45
Statement of
OPERATIONS Year Ended August 31, 2004
CALIFORNIA
CALIFORNIA CALIFORNIA CALIFORNIA INVESTMENT CALIFORNIA CALIFORNIA
VALUE PERFORMANCE PLUS OPPORTUNITY QUALITY SELECT QUALITY QUALITY INCOME
(NCA) (NCP) (NCO) (NQC) (NVC) (NUC)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $13,657,067 $15,323,931 $10,007,948 $16,139,916 $28,415,912 $27,293,679
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 1,464,310 1,945,314 1,244,771 2,054,712 3,462,418 3,301,803
Preferred shares - auction fees N/A 265,890 170,570 280,939 481,611 464,052
Preferred shares - dividend
disbursing agent fees N/A 30,082 20,053 20,053 30,082 30,082
Shareholders' servicing agent fees
and expenses 46,926 29,844 18,152 26,677 37,720 24,559
Custodian's fees and expenses 57,481 74,169 51,231 76,176 133,169 117,818
Directors' fees and expenses 4,485 7,761 4,600 6,212 11,170 14,278
Professional fees 15,570 32,969 24,271 16,959 23,386 28,651
Shareholders' reports - printing
and mailing expenses 25,605 27,641 18,551 17,132 29,336 40,073
Stock exchange listing fees 13,479 14,997 11,010 15,010 15,019 12,582
Investor relations expense 20,734 30,598 19,230 23,442 40,831 45,678
Other expenses 12,051 26,771 22,974 26,464 33,727 36,584
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian
fee credit 1,660,641 2,486,036 1,605,413 2,563,776 4,298,469 4,116,160
Custodian fee credit (11,826) (13,807) (7,926) (12,956) (14,942) (27,553)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 1,648,815 2,472,229 1,597,487 2,550,820 4,283,527 4,088,607
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 12,008,252 12,851,702 8,410,461 13,589,096 24,132,385 23,205,072
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
FROM INVESTMENTS
Net realized gain
from investments 2,319,697 2,167,610 742,324 2,364,123 3,395,405 2,114,115
Change in net unrealized
appreciation (depreciation)
of investments 6,308,476 8,089,622 6,419,737 7,064,201 14,117,283 13,820,855
------------------------------------------------------------------------------------------------------------------------------------
Net gain from investments 8,628,173 10,257,232 7,162,061 9,428,324 17,512,688 15,934,970
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED
SHAREHOLDERS
From net investment income N/A (780,694) (503,354) (844,306) (1,397,366) (1,484,370)
From accumulated net realized
gains from investments N/A (71) -- (108,863) (138,177) (66,203)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable
to Common shares from
distributions to Preferred
shareholders N/A (780,765) (503,354) (953,169) (1,535,543) (1,550,573)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to Common shares
from operations $20,636,425 $22,328,169 $15,069,168 $22,064,251 $40,109,530 $37,589,469
====================================================================================================================================
N/A - Fund is not authorized to issue Preferred shares.
See accompanying notes to financial statements.
46
Statement of
CHANGES IN NET ASSETS
CALIFORNIA
CALIFORNIA VALUE (NCA) PERFORMANCE PLUS (NCP) CALIFORNIA OPPORTUNITY (NCO)
----------------------------- ----------------------------- -----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
8/31/04 8/31/03 8/31/04 8/31/03 8/31/04 8/31/03
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $12,008,252 $ 12,496,543 $ 12,851,702 $ 13,234,951 $ 8,410,461 $ 8,451,534
Net realized gain (loss)
from investments 2,319,697 1,473,738 2,167,610 1,004,022 742,324 (2,416,823)
Change in net unrealized
appreciation
(depreciation)
of investments 6,308,476 (9,461,698) 8,089,622 (8,515,354) 6,419,737 (1,963,613)
Distributions to
Preferred Shareholders:
From net investment income N/A N/A (780,694) (979,590) (503,354) (606,611)
From accumulated net realized
gains from investments N/A N/A (71) -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to Common
shares from operations 20,636,425 4,508,583 22,328,169 4,744,029 15,069,168 3,464,487
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (12,049,077) (12,869,723) (12,427,198) (11,928,784) (7,763,200) (7,452,565)
From accumulated net
realized gains
from investments (1,785,958) (235,826) (2,579) (1,019) -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable
to Common shares from
distributions to Common
shareholders (13,835,035) (13,105,549) (12,429,777) (11,929,803) (7,763,200) (7,452,565)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net
assets applicable
to Common shares 6,801,390 (8,596,966) 9,898,392 (7,185,774) 7,305,968 (3,988,078)
Net assets applicable
to Common
shares at the
beginning of period 250,748,954 259,345,920 191,408,503 198,594,277 120,437,353 124,425,431
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $257,550,344 $250,748,954 $201,306,895 $191,408,503 $127,743,321 $120,437,353
====================================================================================================================================
Undistributed net
investment income
at the end of period $ 107,479 $ 157,276 $ 1,404,796 $ 1,832,606 $ 1,403,870 $ 1,304,648
====================================================================================================================================
N/A - Fund is not authorized to issue Preferred shares.
See accompanying notes to financial statements.
47
Statement of
CHANGES IN NET ASSETS (continued)
CALIFORNIA CALIFORNIA CALIFORNIA
INVESTMENT QUALITY (NQC) SELECT QUALITY (NVC) QUALITY INCOME (NUC)
----------------------------- ----------------------------- -----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
8/31/04 8/31/03 8/31/04 8/31/03 8/31/04 8/31/03
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 13,589,096 $ 14,400,972 $ 24,132,385 $ 24,351,670 $ 23,205,072 $ 23,635,564
Net realized gain (loss)
from investments 2,364,123 594,277 3,395,405 553,846 2,114,115 676,834
Change in net unrealized
appreciation
(depreciation)
of investments 7,064,201 (10,261,134) 14,117,283 (14,789,814) 13,820,855 (19,847,121)
Distributions to
Preferred Shareholders:
From net investment income (844,306) (1,031,502) (1,397,366) (1,731,308) (1,484,370) (1,526,791)
From accumulated net realized
gains from investments (108,863) (25,327) (138,177) (25,494) (66,203) (242,125)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to Common
shares from operations 22,064,251 3,677,286 40,109,530 8,358,900 37,589,469 2,696,361
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (13,143,809) (12,711,116) (22,364,963) (21,757,051) (22,324,260) (21,879,825)
From accumulated net
realized gains
from investments (1,385,531) (252,596) (1,699,283) (341,832) (1,020,300) (2,618,427)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable
to Common shares from
distributions to Common
shareholders (14,529,340) (12,963,712) (24,064,246) (22,098,883) (23,344,560) (24,498,252)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions -- -- -- -- 348,755 520,494
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net
assets applicable
to Common shares 7,534,911 (9,286,426) 16,045,284 (13,739,983) 14,593,664 (21,281,397)
Net assets applicable
to Common
shares at the beginning
of period 204,974,242 214,260,668 344,892,407 358,632,390 326,279,679 347,561,076
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable
to Common shares
at the end of period $212,509,153 $204,974,242 $360,937,691 $344,892,407 $340,873,343 $326,279,679
====================================================================================================================================
Undistributed net investment
income at the
end of period $ 1,889,978 $ 2,321,681 $ 4,251,091 $ 3,884,290 $ 3,033,040 $ 3,675,428
====================================================================================================================================
See accompanying notes to financial statements.
48
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 U.S.
generally accepted accounting principles.
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, 2004,
California Value (NCA) had outstanding when-issued purchase commitments of
$2,027,720. 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.
Professional Fees
Professional fees presented in the Statement of Operations consist of legal fees
incurred in the normal course of operations, audit fees, tax consulting fees
and, in some cases, workout expenditures. Workout expenditures are incurred in
an attempt to protect or enhance an investment, or to pursue other claims or
legal actions on behalf of the Fund's shareholders.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute all net investment income and net capital gains to
shareholders and to otherwise comply with the requirements of Subchapter M of
the Internal Revenue Code applicable to regulated investment companies.
Therefore, no federal income tax provision is required. Furthermore, each Fund
intends to satisfy conditions which will enable interest from municipal
securities, which is exempt from regular federal and California state income
taxes, to retain such tax-exempt status when distributed to shareholders of the
Funds. All monthly tax-exempt income dividends paid during the fiscal year ended
August 31, 2004, have been designated Exempt Interest Dividends. Net realized
capital gains and ordinary income distributions made by the Funds are subject to
federal taxation.
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.
49
Notes to
FINANCIAL STATEMENTS (continued)
Distributions to Common Shareholders of tax-exempt net investment income, net
realized capital gains and/or market discount, if any, are recorded on the
ex-dividend date. The amount and timing of distributions are determined in
accordance with federal income tax regulations, which may differ from U.S.
generally accepted accounting principles.
Preferred Shares
California Value (NCA) is not authorized to issue Preferred shares. The Funds
below have issued and outstanding $25,000 stated value Preferred shares as a
means of effecting financial leverage. 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, 2004.
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.
Indemnifications
Under the Funds' organizational documents, their Officers and Directors are
indemnified against certain liabilities arising out of the performance of their
duties to the Funds. In addition, in the normal course of business, the Funds
enter into contracts that provide general indemnifications to other parties. The
Funds' maximum exposure under these arrangements is unknown as this would
involve future claims that may be made against the Funds that have not yet
occurred. However, the Funds have not had prior claims or losses pursuant to
these contracts and expect the risk of loss to be remote.
Use of Estimates
The preparation of financial statements in conformity with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of increases and
decreases in net assets applicable to Common shares from operations during the
reporting period. Actual results may differ from those estimates.
50
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
8/31/04 8/31/03 8/31/04 8/31/03 8/31/04 8/31/03
---------------------------------------------------------------------------------------------------------
Shares issued to
shareholders due to
reinvestment of distributions -- -- -- -- -- --
=========================================================================================================
CALIFORNIA CALIFORNIA CALIFORNIA
INVESTMENT QUALITY (NQC) SELECT QUALITY (NVC) QUALITY INCOME (NUC)
------------------------ ----------------------- -----------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
8/31/04 8/31/03 8/31/04 8/31/03 8/31/04 8/31/03
---------------------------------------------------------------------------------------------------------
Shares issued to
shareholders due to
reinvestment of distributions -- -- -- -- 22,300 32,183
=========================================================================================================
3. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities during the fiscal year ended August 31, 2004, 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 $73,201,242 $58,677,605 $29,035,213 $71,159,979 $74,365,300 $91,534,961
Sales and maturities 69,751,874 47,814,381 25,335,233 63,819,497 86,694,441 81,744,617
=========================================================================================================
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, 2004, 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 $237,069,519 $287,000,143 $177,739,540 $300,091,779 $498,468,832 $488,937,678
=============================================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at August 31, 2004, 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 $18,841,506 $17,815,524 $16,483,072 $19,687,677 $33,336,755 $33,549,719
Depreciation (1,188,608) (1,360,480) (1,096,689) (927) (999,151) (4,023,030)
-------------------------------------------------------------------------------------------------------------
Net unrealized appreciation
of investments $17,652,898 $16,455,044 $15,386,383 $19,686,750 $32,337,604 $29,526,689
=============================================================================================================
51
Notes to
FINANCIAL STATEMENTS (continued)
The tax components of undistributed net investment income and net realized gains
at August 31, 2004, 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 $ 878,849 $2,180,066 $1,664,601 $2,591,098 $5,665,359 $4,680,149
Undistributed net
ordinary income * 143,281 -- 26,601 -- 292,603 --
Undistributed net
long-term
capital gains 2,017,652 2,239,279 -- 1,521,440 2,255,657 1,810,718
=========================================================================================================
* 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,
2004 and August 31, 2003, 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
2004 (NCA) (NCP) (NCO) (NQC) (NVC) (NUC)
---------------------------------------------------------------------------------------------------------
Distributions from net
tax-exempt income $12,078,206 $12,806,121 $8,178,868 $13,787,139 $23,664,226 $23,353,732
Distributions from
net ordinary income * 46,597 398,934 61,570 232,284 57,960 538,127
Distributions from net
long-term
capital gains 1,785,958 2,650 -- 1,465,179 1,837,461 999,516
=========================================================================================================
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
=========================================================================================================
* Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
At August 31, 2004, California Opportunity (NCO) had an unused capital loss
carryforward of $2,423,519 available for federal income tax purposes to be
applied against future capital gains, if any. If not applied, $908,397 of the
carryforward will expire in the year 2011 and $1,515,122 will expire in 2012.
5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
As approved by the Board of Trustees, effective August 1, 2004, a complex-wide
management fee structure was adopted for all funds sponsored by Nuveen Advisory
Corp. (the "Adviser"), a wholly owned subsidiary of Nuveen Investments, Inc. and
its affiliates. This fee structure separates each fund's management fee into two
components - a complex-level component, based on the aggregate amount of all
funds assets managed by the Adviser and its affiliates, and a specific
fund-level component, based only on the amount of assets within each individual
fund. This pricing structure enables Nuveen fund shareholders to benefit from
growth in the assets within each individual fund as well as from growth in the
amount of complex-wide assets managed by the Adviser and its affiliates. Under
no circumstances will this pricing structure result in a fund paying management
fees at a rate higher than would otherwise have been applicable had the
complex-wide management fee structure not been implemented. As a consequence of
this new management fee structure, the funds' effective management fees were
reduced by approximately .006% as of September 30, 2004.
52
Effective August 1, 2004, the annual fund-level fee, payable monthly, for each
of the Funds (excluding California Value (NCA)) is based upon the average daily
net assets (including net assets attributable to Preferred shares) of each Fund
as follows:
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS
ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For the next $3 billion .3875
For net assets over $5 billion .3750
================================================================================
California Value (NCA) pays an annual fund-level fee, payable monthly, of .15%
of the average daily net assets of the Fund, as well as 4.125% of the gross
interest income of the Fund.
Effective August 1, 2004, the annual complex-level fee, payable monthly, which
is additive to the fund-level fee, for all Nuveen sponsored funds in the U.S.,
is based on the aggregate amount of total fund assets managed as follows:
COMPLEX-LEVEL ASSETS (1) COMPLEX-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $55 billion .2000%
For the next $1 billion .1800
For the next $1 billion .1600
For the next $3 billion .1425
For the next $3 billion .1325
For the next $3 billion .1250
For the next $5 billion .1200
For the next $5 billion .1175
For the next $15 billion .1150
For Managed Assets over $91 billion (2) .1400
================================================================================
(1) The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate Managed Assets ("Managed Assets" means
the average daily net assets of each fund including assets attributable to
all types of leverage used by the Nuveen funds) of Nuveen-sponsored funds
in the U.S.
(2) With respect to the complex-wide Managed Assets over $91 billion, the fee
rate or rates that will apply to such assets will be determined at a later
date. In the unlikely event that complex-wide Managed Assets reach $91
billion prior to a determination of the complex-level fee rate or rates to
be applied to Managed Assets in excess of $91 billion, the complex-level
fee rate for such complex-wide Managed Assets shall be .1400% until such
time as a different rate or rates is determined.
Each Fund (excluding California Value (NCA)) paid through July 31, 2004, an
annual management fee, payable monthly, at the rates set forth below, which were
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 RATE
--------------------------------------------------------------------------------
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
================================================================================
California Value (NCA) paid through July 31, 2004, 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.
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 Trustees who are affiliated with the
Adviser or to their officers, all of whom receive remuneration for their
services to the Funds from the Adviser or its affiliates. The Board of Trustees
has adopted a deferred compensation plan for independent Trustees that enables
Trustees to elect to defer receipt of all or a portion of the annual
compensation they are entitled to receive from certain Nuveen advised Funds.
Under the plan, deferred amounts are treated as though equal dollar amounts had
been invested in shares of select Nuveen advised Funds.
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, 2004, to shareholders of record
on September 15, 2004, 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 $.0385 $.0775 $.0790 $.0795 $.0805 $.0830
=========================================================================================================
53
Financial
HIGHLIGHTS
Selected data for a Common share outstanding throughout each period:
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:
2004 $ 9.93 $ .48 $ .34 $ N/A $ N/A $ .82 $ (.48) $(.07) $ (.55)
2003 10.27 .50 (.32) N/A N/A .18 (.51) (.01) (.52)
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)
CALIFORNIA PERFORMANCE
PLUS (NCP)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2004 14.76 .99 .80 (.06) -- 1.73 (.96) -- (.96)
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)
CALIFORNIA
OPPORTUNITY (NCO)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2004 14.77 1.03 .88 (.06) -- 1.85 (.95) -- (.95)
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)
====================================================================================================================================
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:
2004 $-- $10.20 $ 9.2700 8.02% 8.40%
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
CALIFORNIA PERFORMANCE
PLUS (NCP)
---------------------------------------------------------------------------------------
Year Ended 8/31:
2004 -- 15.53 14.2600 9.65 12.00
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
CALIFORNIA
OPPORTUNITY (NCO)
---------------------------------------------------------------------------------------
Year Ended 8/31:
2004 -- 15.67 14.4500 10.63 12.86
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
=======================================================================================
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:
2004 $257,550 .65% 4.70% .65% 4.70% 28%
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
CALIFORNIA PERFORMANCE
PLUS (NCP)
---------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2004 201,307 1.26 6.48 1.25 6.49 16
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
CALIFORNIA
OPPORTUNITY (NCO)
---------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2004 127,743 1.28 6.72 1.28 6.73 13
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
===========================================================================================================================
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:
2004 $ N/A $ N/A $ N/A
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
CALIFORNIA PERFORMANCE
PLUS (NCP)
----------------------------------------------------------------------
Year Ended 8/31:
2004 106,000 25,000 72,478
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
CALIFORNIA
OPPORTUNITY (NCO)
----------------------------------------------------------------------
Year Ended 8/31:
2004 68,000 25,000 71,964
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
======================================================================
N/A Fund is not authorized to issue Preferred shares.
* Total Investment Return on Market Value is the combination of changes in
the market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. Total Return on Common Share Net
Asset Value is the combination of changes in Common Share net asset value
per share, reinvested dividend income at net asset value and reinvested
capital gains distributions at net asset value, if any. 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.
54-55 spread
Financial HIGHLIGHTS (continued)
Selected data for a Common share outstanding throughout each period:
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:
2004 $15.09 $1.00 $ .70 $(.06) $(.01) $1.63 $ (.97) $(.10) $(1.07)
2003 15.78 1.06 (.71) (.08) -- .27 (.94) (.02) (.96)
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)
CALIFORNIA SELECT
QUALITY (NVC)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2004 14.93 1.04 .77 (.06) (.01) 1.74 (.97) (.07) (1.04)
2003 15.53 1.05 (.63) (.07) -- .35 (.94) (.01) (.95)
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)
CALIFORNIA QUALITY
INCOME (NUC)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2004 14.85 1.05 .73 (.07) -- 1.71 (1.02) (.05) (1.07)
2003 15.84 1.08 (.87) (.07) (.01) .13 (1.00) (.12) (1.12)
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)
====================================================================================================================================
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:
2004 $-- $15.65 $14.8000 8.94% 11.11%
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
CALIFORNIA SELECT
QUALITY (NVC)
-------------------------------------------------------------------------------------
Year Ended 8/31:
2004 -- 15.63 14.8100 12.38 11.97
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
CALIFORNIA QUALITY
INCOME (NUC)
-------------------------------------------------------------------------------------
Year Ended 8/31:
2004 -- 15.49 15.0000 9.67 11.76
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
=====================================================================================
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:
2004 $212,509 1.22% 6.48% 1.22% 6.49% 20%
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
CALIFORNIA SELECT
QUALITY (NVC)
----------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2004 360,938 1.21 6.78 1.20 6.78 14
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
CALIFORNIA QUALITY
INCOME (NUC)
----------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2004 340,873 1.22 6.89 1.21 6.89 16
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
============================================================================================================================
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:
2004 $112,000 $25,000 $72,435
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
CALIFORNIA SELECT
QUALITY (NVC)
-----------------------------------------------------------------------
Year Ended 8/31:
2004 192,000 25,000 71,997
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
CALIFORNIA QUALITY
INCOME (NUC)
-----------------------------------------------------------------------
Year Ended 8/31:
2004 185,000 25,000 71,064
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
=======================================================================
* Total Investment Return on Market Value is the combination of changes in
the market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. Total Return on Common Share Net
Asset Value is the combination of changes in Common Share net asset value
per share, reinvested dividend income at net asset value and reinvested
capital gains distributions at net asset value, if any. 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.
56-57 spread
Board Members
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
Members of the Funds. The number of board members of the Funds is currently set
at seven. None of the board members 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 board members and officers
of the Funds, their principal occupations and other affiliations during the past
five years, the number of portfolios each oversees and other directorships they
hold are set forth below.
NUMBER OF
PORTFOLIOS IN
POSITION(S) YEAR FIRST PRINCIPAL OCCUPATION(S) FUND COMPLEX
NAME, BIRTHDATE HELD WITH ELECTED OR INCLUDING OTHER DIRECTORSHIPS OVERSEEN BY
AND ADDRESS THE FUNDS APPOINTED(2) DURING PAST 5 YEARS BOARD MEMBER
------------------------------------------------------------------------------------------------------------------------------------
BOARD MEMBER WHO IS AN INTERESTED PERSON OF THE FUNDS:
------------------------------------------------------------------------------------------------------------------------------------
Timothy R. Schwertfeger (1) Chairman of 1994 Chairman and Director (since 1996) of Nuveen Investments, 145
3/28/49 the Board Inc. and Nuveen Investments, LLC; Director (since 1992) and
333 W. Wacker Drive and Trustee Chairman (since 1996) of Nuveen Advisory Corp. and Nuveen
Chicago, IL 60606 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).
BOARD MEMBERS WHO ARE NOT INTERESTED PERSONS OF THE FUNDS:
------------------------------------------------------------------------------------------------------------------------------------
Robert P. Bremner Board member 1997 Private Investor and Management Consultant. 145
8/22/40
333 W. Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Lawrence H. Brown Board member 1993 Retired (1989) as Senior Vice President of The Northern 145
7/29/34 Trust Company; Director, Community Advisory Board for
333 W. Wacker Drive Highland Park and Highwood, United Way of the North
Chicago, IL 60606 Shore (since 2002).
------------------------------------------------------------------------------------------------------------------------------------
Jack B. Evans Board member 1999 President, The Hall-Perrine Foundation, a private philanthropic 145
10/22/48 corporation (since 1996); Director and Vice Chairman, United
333 W. Wacker Drive Fire & Casualty Company; formerly Director, Federal Reserve
Chicago, IL 60606 Bank of Chicago; formerly, President and Chief Operating
Officer, SCI Financial Group, Inc., a regional financial
services firm.
------------------------------------------------------------------------------------------------------------------------------------
William C. Hunter Board member 2004 Dean and Distinguished Professor of Finance, School of 145
3/6/48 Business at the University of Connecticut (since 2003);
333 W. Wacker Drive previously Senior Vice President and Director of Research
Chicago, IL 60606 at the Federal Reserve Bank of Chicago (1995-2003);
Director, Credit Research Center at Georgetown University;
Director of Xerox Corporation (since 2004).
58
NUMBER OF
PORTFOLIOS IN
POSITION(S) YEAR FIRST PRINCIPAL OCCUPATION(S) FUND COMPLEX
NAME, BIRTHDATE HELD WITH ELECTED OR INCLUDING OTHER DIRECTORSHIPS OVERSEEN BY
AND ADDRESS THE FUNDS APPOINTED(2) DURING PAST 5 YEARS BOARD MEMBER
------------------------------------------------------------------------------------------------------------------------------------
BOARD MEMBERS WHO ARE NOT INTERESTED PERSONS OF THE FUNDS (CONTINUED):
------------------------------------------------------------------------------------------------------------------------------------
William J. Schneider Board member 1997 Senior Partner and Chief Operating Officer, Miller-Valentine 145
9/24/44 Group, Vice President, Miller-Valentine Realty, a construction
333 W. Wacker Drive company; Chair, Miami Valley Hospital; Chair, Dayton
Chicago, IL 60606 Development Coalition; formerly, Member, Community
Advisory Board, National City Bank, Dayton, Ohio and
Business Advisory Council, Cleveland Federal Reserve Bank.
------------------------------------------------------------------------------------------------------------------------------------
Judith M. Stockdale Board member 1997 Executive Director, Gaylord and Dorothy Donnelley 145
12/29/47 Foundation (since 1994); prior thereto, Executive Director,
333 W. Wacker Drive Great Lakes Protection Fund (from 1990 to 1994)
Chicago, IL 60606
NUMBER OF
PORTFOLIOS IN
POSITION(S) YEAR FIRST FUND COMPLEX
NAME, BIRTHDATE HELD WITH ELECTED OR PRINCIPAL OCCUPATION(S) OVERSEEN BY
AND ADDRESS THE FUNDS APPOINTED(3) DURING PAST 5 YEARS OFFICER
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS:
------------------------------------------------------------------------------------------------------------------------------------
Gifford R. Zimmerman Chief 1988 Managing Director (since 2002), Assistant Secretary and 145
9/9/56 Administrative Associate General Counsel, formerly, Vice President and
333 W. Wacker Drive Officer Assistant General Counsel of Nuveen Investments, LLC;
Chicago, IL 60606 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 2003);
Chartered Financial Analyst.
------------------------------------------------------------------------------------------------------------------------------------
Michael T. Atkinson Vice President 2000 Vice President (since 2002), formerly, Assistant Vice 145
2/3/66 and Assistant President (since 2000), previously, Associate of Nuveen
333 W. Wacker Drive Secretary Investments, LLC.
Chicago, IL 60606
59
Board Members
AND OFFICERS (CONTINUED)
NUMBER OF
PORTFOLIOS IN
POSITION(S) YEAR FIRST FUND COMPLEX
NAME, BIRTHDATE HELD WITH ELECTED OR PRINCIPAL OCCUPATION(S) OVERSEEN BY
AND ADDRESS THE FUNDS APPOINTED(3) DURING PAST 5 YEARS OFFICER
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS (CONTINUED):
------------------------------------------------------------------------------------------------------------------------------------
Peter H. D'Arrigo Vice President 1999 Vice President of Nuveen Investments, LLC (since 1999), 145
11/28/67 and Treasurer prior thereto, Assistant Vice President (since 1997); Vice
333 W. Wacker Drive President and Treasurer of Nuveen Investments, Inc. (since
Chicago, IL 60606 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); Vice President and Treasurer of
Nuveen Rittenhouse Asset Management, Inc. (since 2003);
Chartered Financial Analyst.
------------------------------------------------------------------------------------------------------------------------------------
Jessica R. Droeger Vice President 2000 Vice President (since 2002) and Assistant General Counsel 145
9/24/64 and Secretary (since 1998); formerly, Assistant Vice President (since 1998)
333 W. Wacker Drive of Nuveen Investments, LLC; Vice President (since 2002)
Chicago, IL 60606 and Assistant Secretary (since 1998), formerly Assistant
Vice President of Nuveen Advisory Corp. and Nuveen
Institutional Advisory Corp.
------------------------------------------------------------------------------------------------------------------------------------
Lorna C. Ferguson Vice President 1998 Managing Director (since 2004) formerly, Vice President of 145
10/24/45 Nuveen Investments, LLC; Managing Director (since 2004)
333 W. Wacker Drive formerly, Vice President (since 1998) of Nuveen Advisory
Chicago, IL 60606 Corp. and Nuveen Institutional Advisory Corp.
------------------------------------------------------------------------------------------------------------------------------------
William M. Fitzgerald Vice President 1995 Managing Director (since 2002) of Nuveen Investments, 145
3/2/64 LLC; Managing Director (since 2001), formerly Vice President
333 W. Wacker Drive of Nuveen Advisory Corp. and Nuveen Institutional Advisory
Chicago, IL 60606 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 (since 1998) 145
5/31/54 and Controller of Nuveen Investments, LLC and Vice President and Funds
333 W. Wacker Drive Controller (since 1998) of Nuveen Investments, Inc.;
Chicago, IL 60606 Certified Public Accountant.
60
NUMBER OF
PORTFOLIOS IN
POSITION(S) YEAR FIRST FUND COMPLEX
NAME, BIRTHDATE HELD WITH ELECTED OR PRINCIPAL OCCUPATION(S) OVERSEEN BY
AND ADDRESS THE FUNDS APPOINTED(3) DURING PAST 5 YEARS OFFICER
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS (CONTINUED):
------------------------------------------------------------------------------------------------------------------------------------
James D. Grassi Vice President 2004 Vice President and Deputy Director of Compliance 145
4/13/56 and Chief (since August 2004) of Nuveen Investments, LLC,
333 W. Wacker Drive Compliance Nuveen Investments Advisers Inc., Nuveen Asset
Chicago, IL 60606 Officer Management Inc., Nuveen Advisory Corp., Nuveen
Institutional Advisory Corp. and Rittenhouse Asset
Management, Inc.; formerly, Senior Attorney
(1994-July 2004), The Northern Trust Company.
------------------------------------------------------------------------------------------------------------------------------------
David J. Lamb Vice President 2000 Vice President (since 2000) of Nuveen Investments, 145
3/22/63 LLC, previously Assistant Vice President (since 1999);
333 W. Wacker Drive prior thereto, Associate of Nuveen Investments, LLC;
Chicago, IL 60606 Certified Public Accountant.
------------------------------------------------------------------------------------------------------------------------------------
Tina M. Lazar Vice President 2002 Vice President (since 1999), previously, Assistant Vice 145
8/27/61 President (since 1993) of Nuveen Investments, LLC.
333 W. Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Larry W. Martin Vice President 1988 Vice President, Assistant Secretary and Assistant General 145
7/27/51 and Assistant Counsel of Nuveen Investments, LLC; Vice President and
333 W. Wacker Drive Secretary Assistant Secretary of Nuveen Advisory Corp. and Nuveen
Chicago, IL 60606 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).
------------------------------------------------------------------------------------------------------------------------------------
Edward F. Neild, IV Vice President 1996 Managing Director (since 2002) of Nuveen Investments, LLC; 145
7/7/65 Managing Director (since 1997), formerly Vice President
333 W. Wacker Drive (since 1996) of Nuveen Advisory Corp. and Nuveen Institutional
Chicago, IL 60606 Advisory Corp.; Managing Director of Nuveen Asset Management,
Inc. (since 1999). Chartered Financial Analyst.
(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 board member
of the Adviser.
(2) Board members serve an indefinite term until his/her successor is elected.
The year first elected or appointed represents the year in which the board
member was first elected or appointed to any fund in the Nuveen Complex.
(3) Officers serve one year terms through July of each year. The year first
elected or appointed represents the year in which the Officer was first
elected or appointed to any fund in the Nuveen Complex.
61
Reinvest Automatically
EASILY AND CONVENIENTLY
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
the dividends or distributions awaiting reinvestment. Because the market price
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.
FLEXIBLE
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
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.
62
Other Useful
INFORMATION
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
Each Fund's (i) quarterly portfolio of investments and (ii) information
regarding how the Funds voted proxies relating to portfolio securities held
during the most recent 12-month period ended June 30, 2004, are available
without charge, upon request, by calling Nuveen Investments toll-free at (800)
257-8787 or on Nuveen's web site at www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities
and Exchange Commission ("SEC"). The SEC may charge a copying fee for this
information. Visit the SEC on-line at http://www.sec.gov or in person at the
SEC's Public Reference Room in Washington, D.C. Call the SEC at 1-202-942-8090
for room hours and operation. You may also request Fund information by sending
an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public
References Section at 450 Fifth Street NW, Washington, D.C. 20549.
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 that would have been necessary each year to equal the
investment's actual cumulative performance (including change in NAV or market
price and reinvested dividends and capital gains distributions, if any) over the
time period being considered.
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 the security of a bond or
bond fund's value to changes when interest rates change. 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 longer than the duration of the
Fund's portfolio of bonds.
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 common share NAV per share is calculated by
subtracting the liabilities of the Fund (including any MuniPreferred shares
issued in order to leverage the Fund) from its total assets and then dividing
the remainder by the number of shares outstanding. Fund NAVs are calculated at
the end of each business day.
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.
BOARD OF DIRECTORS
Robert P. Bremner
Lawrence H. Brown
Jack B. Evans
William C. Hunter
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 REGISTERED
PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
Chicago, IL
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the fiscal year ended August 31, 2004. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
63
Nuveen Investments:
SERVING Investors
For GENERATIONS
Photo of: 2 women looking at a photo album.
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
WE OFFER MANY DIFFERENT INVESTING SOLUTIONS FOR OUR CLIENTS' DIFFERENT NEEDS.
Managing $100 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.
FIND OUT HOW WE CAN HELP YOU REACH YOUR FINANCIAL GOALS.
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.
Learn more
about Nuveen Funds at
WWW.NUVEEN.COM/ETF
o Share prices
o Fund details
o Daily financial news
o Investor education
o Interactive planning tools
Logo: NUVEEN Investments
EAN-A-0804D
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 determined that the registrant had 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 was William E. Bennett, who was "independent" for purposes of Item 3 of
Form N-CSR.
Although Mr. Bennett served as the audit committee financial expert during the
reporting period, he unexpectedly resigned from the Board effective April 30,
2004. Since that time, the Audit Committee determined that Jack B. Evans, the
Chairman of the Audit Committee, qualifies as an audit committee financial
expert and recommended to the full Board that he be designated as such. On July
26, 2004, the full Board voted to so designate Mr. Evans. Accordingly for this
reporting period, the registrant did not have a designated "audit committee
financial expert" from April 30, 2004 to July 26, 2004. Mr. Evans, who is
independent for purposes of Item 3 of Form N-CSR, served as the registrant's
audit committee financial expert from July 26, 2004 to the end of the reporting
period on August 31, 2004
Mr. Bennett was formerly Executive Vice President and Chief Credit Officer of
First Chicago Corporation and its principal subsidiary, The First National Bank
of Chicago. 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 portfolo; 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.
Mr. Evans was formerly President and Chief Operating Office of SCI Financial
Group, Inc., a full service registered broker-dealer and registered investment
adviser ("SCI"). As part of his role as President and Chief Operating Officer,
Mr. Evans actively supervised the Chief Financial Officer (the "CFO") and
actively supervised the CFO's preparation of financial statements and other
filings with various regulatory authorities. In such capacity, Mr. Evans was
actively involved in the preparation of SCI's financial statements and the
resolution of issues raised in connection therewith. Mr. Evans has also served
on the audit committee of various reporting companies. At such companies, Mr.
Evans was involved in the oversight of audits, audit plans, and the preparation
of financial statements. Mr. Evans also formerly chaired the audit committee of
the Federal Reserve Bank of Chicago.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
NUVEEN CALIFORNIA MUNICIPAL VALUE FUND, INC.
The following tables show the amount of fees that Ernst & Young LLP, the Fund's
auditor, billed to the Fund during the Fund's last two full fiscal years. For
engagements with Ernst & Young LLP entered into on or after May 6, 2003, the
Audit Committee approved in advance all audit services and non-audit services
that Ernst & Young LLP provided to the Fund, except for those non-audit services
that were subject to the pre-approval exception under Rule 2-01 of Regulation
S-X (the "pre-approval exception"). The pre-approval exception for services
provided directly to the Fund waives the pre-approval requirement for services
other than audit, review or attest services if: (A) the aggregate amount of all
such services provided constitutes no more than 5% of the total amount of
revenues paid by the Fund during the fiscal year in which the services are
provided; (B) the Fund did not recognize the services as non-audit services at
the time of the engagement; and (C) the services are promptly brought to the
Audit Committee's attention, and the Committee (or its delegate) approves the
services before the audit is completed.
The Audit Committee has delegated certain pre-approval responsibilities to its
Chairman (or, in his absence, any other member of the Audit Committee).
SERVICES THAT THE FUND'S AUDITOR BILLED TO THE FUND
AUDIT FEES BILLED AUDIT-RELATED FEES TAX FEES ALL OTHER FEES
FISCAL YEAR ENDED TO FUND BILLED TO FUND BILLED TO FUND BILLED TO FUND
------------------------------------------------------------------------------------------------------------------------------------
August 31, 2004 $ 11,096 $ 0 $ 405 $ 0
------------------------------------------------------------------------------------------------------------------------------------
Percentage approved N/A 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------------------------
August 31, 2003 $ 9,888 $ 0 $ 359 $ 0
------------------------------------------------------------------------------------------------------------------------------------
Percentage approved N/A 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------------------------
The above "Tax Fees" were billed for professional services for tax advice, tax
compliance and tax planning.
SERVICES THAT THE FUND'S AUDITOR BILLED TO THE
ADVISER AND AFFILIATED FUND SERVICE PROVIDERS
The following tables show the amount of fees billed by Ernst & Young LLP to
Nuveen Advisory Corp. ("NAC" or the "Adviser"), and any entity controlling,
controlled by or under common control with NAC ("Control Affiliate") that
provides ongoing services to the Fund ("Affiliated Fund Service Provider"), for
engagements directly related to the Fund's operations and financial reporting,
during the Fund's last two full fiscal years.
The table also shows the percentage of fees subject to the pre-approval
exception. The pre-approval exception for services provided to the Adviser and
any Affiliated Fund Service Provider (other than audit, review or attest
services) waives the pre-approval requirement if: (A) the aggregate amount of
all such services provided constitutes no more than 5% of the total amount of
revenues paid to Ernst & Young LLP by the Fund, the Adviser and Affiliated Fund
Service Providers during the fiscal year in which the services are provided that
would have to be pre-approved by the Audit Committee; (B) the Fund did not
recognize the services as non-audit services at the time of the engagement; and
(C) the services are promptly brought to the Audit Committee's attention, and
the Committee (or its delegate) approves the services before the Fund's audit is
completed.
FISCAL YEAR ENDED AUDIT-RELATED FEES TAX FEES BILLED TO ALL OTHER FEES
BILLED TO ADVISER AND ADVISER AND BILLED TO ADVISER
AFFILIATED FUND AFFILIATED FUND AND AFFILIATED FUND
SERVICE PROVIDERS SERVICE PROVIDERS SERVICE PROVIDERS
------------------------------------------------------------------------------------------------------------------------------------
August 31, 2004 $ 0 $ 0 $ 0
------------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------------------------
August 31, 2003 $ 0 $ 0 $ 0
------------------------------------------------------------------------------------------------------------------------------------
Percentage approved N/A N/A N/A
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------------------------
NON-AUDIT SERVICES
The following table shows the amount of fees that Ernst & Young LLP billed
during the Fund's last two full fiscal years for non-audit services. For
engagements entered into on or after May 6, 2003, the Audit Committee is
required to pre-approve non-audit services that Ernst & Young LLP provides to
the Adviser and any Affiliated Fund Services Provider, if the engagement related
directly to the Fund's operations and financial reporting (except for those
subject to the de minimis exception described above). The Audit Committee
requested and received information from Ernst & Young LLP about any non-audit
services that Ernst & Young LLP rendered during the Fund's last fiscal year to
the Adviser and any Affiliated Fund Service Provider. The Committee considered
this information in evaluating Ernst & Young LLP independence.
FISCAL YEAR ENDED TOTAL NON-AUDIT FEES
BILLED TO ADVISER AND
AFFILIATED FUND SERVICE TOTAL NON-AUDIT FEES
PROVIDERS (ENGAGEMENTS BILLED TO ADVISER AND
RELATED DIRECTLY TO THE AFFILIATED FUND SERVICE
TOTAL NON-AUDIT FEES OPERATIONS AND FINANCIAL PROVIDERS (ALL OTHER
BILLED TO FUND REPORTING OF THE FUND) ENGAGEMENTS) TOTAL
------------------------------------------------------------------------------------------------------------------------------------
August 31, 2004 $ 405 $ 0 $ 0 $ 405
August 31, 2003 $ 359 $ 0 $ 0 $ 359
Audit Committee Pre-Approval Policies and Procedures. Generally, the audit
committee must approve (i) all non-audit services to be performed for the Fund
by the Fund's independent accountants and (ii) all audit and non-audit services
to be performed by the Fund's independent accountants for the Affiliated Fund
Service Providers with respect to operations and financial reporting of the
Fund. Regarding tax and research projects conducted by the independent
accountants for the Fund and Affiliated Fund Service Providers (with respect to
operations and financial reports of the Fund) such engagements will be (i)
pre-approved by the audit committee if they are expected to be for amounts
greater than $10,000; (ii) reported to the audit committee chairman for his
verbal approval prior to engagement if they are expected to be for amounts under
$10,000 but greater than $5,000; and (iii) reported to the audit committee at
the next audit committee meeting if they are expected to be for an amount under
$5,000.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable at this time.
ITEM 6. SCHEDULE OF INVESTMENTS.
See Schedule I in Item 1.
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,
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 204-2(c)(2) under the Investment Advisers Act of 1940 (17
CFR 275.204-2(c)(2)), 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. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable at this time.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
In the event of a vacancy on the Board, the nominating and governance committee
receives suggestions from various sources, including shareholders, as to
suitable candidates. Suggestions should be sent in writing to Lorna Ferguson,
Vice President for Board Relations, Nuveen Investments, 333 West Wacker Drive,
Chicago, IL 60606. The nominating and governance committee sets appropriate
standards and requirements for nominations for new directors and reserves the
right to interview all candidates and to make the final selection of any new
directors.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")(17 CFR
240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the 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 12. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable
because 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 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT
Attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons. Not applicable.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR
270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference. Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen California Municipal Value Fund, Inc.
-----------------------------------------------------------
By (Signature and Title)* /s/ Jessica R. Droeger
----------------------------------------------
Jessica R. Droeger
Vice President and Secretary
Date: November 5, 2004
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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 5, 2004
-------------------------------------------------------------------
By (Signature and Title)* /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(Principal Financial Officer)
Date: November 5, 2004
-------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.