UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-5235
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Nuveen California Municipal Value Fund, Inc.
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(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Address of principal executive offices) (Zip code)
Kevin J. McCarthy
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
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Date of fiscal year end: August 31
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Date of reporting period: August 31, 2008
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
ANNUAL REPORT | Nuveen Investments
August 31, 2008 | MUNICIPAL CLOSED-END 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
IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R)
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Chairman's
LETTER TO SHAREHOLDERS
| Robert P. Bremner | Chairman of the Board
Dear Shareholders,
I'd like to use my initial letter to you to accomplish several things. First, I
want to report that after fourteen years of service on your Fund's Board,
including the last twelve as chairman, Tim Schwertfeger retired from the Board
in June. The Board has elected me to replace him as the chairman, the first time
this role has been filled by someone who is not an employee of Nuveen
Investments. Electing an independent chairman marks a significant milestone in
the management of your Fund, and it aligns us with what is now considered a
"best practice" in the fund industry. Further, it demonstrates the independence
with which your Board has always acted on your behalf.
Following Tim will not be easy. During my eleven previous years on the Nuveen
Fund Board, I found that Tim always set a very high standard by combining
insightful industry and market knowledge and sound, clear judgment. While the
Board will miss his wise counsel, I am certain we will retain the primary
commitment Tim shared with all of us - an unceasing dedication to creating and
retaining value for Nuveen Fund shareholders. This focus on value over time is a
touchstone that I and all the other Board members will continue to use when
making decisions on your behalf.
Second, I also want to report that we are very fortunate to be welcoming two new
Board members to our team. John Amboian, the current chairman and CEO of Nuveen
Investments, has agreed to replace Tim as Nuveen's representative on the Board.
John's presence will allow the independent Board members to benefit not only
from his leadership role at Nuveen but also his broad understanding of the fund
industry and Nuveen's role within it. We also are adding Terry Toth as an
independent director. A former CEO of the Northern Trust Company's asset
management group, Terry will bring extensive experience in the fund industry to
our deliberations.
Third, on behalf of the entire Board, I would like you to know that we are
closely monitoring the unprecedented market developments and their distressing
impact on the Funds. We believe that these Funds continue to be actively and
constructively managed for the long term and at the same time we are very aware
that these are trying times for our investors. We appreciate the patience you
have shown with the Board and with Nuveen Investments as they manage your
investment through this extremely difficult period.
Fourth, again on behalf of the entire Board, I would like to acknowledge the
effort the whole Nuveen organization is making to resolve the auction rate
preferred share situation in a satisfactory manner. As you know, we are actively
pursuing a number of possible solutions, all with the goal of providing
liquidity for preferred shareholders while preserving the potential benefits of
leverage for common shareholders. We appreciate the patience you have shown as
we've worked through the many details involved.
Finally, I urge you to take the time to review the Portfolio Manager's Comments,
the Common Share Dividend and Share Price Information, and the Performance
Overview sections of this report. All of us are grateful that you have chosen
Nuveen Investments as a partner as you pursue your financial goals, and, on
behalf of myself and the other members of your Fund's Board, let me say we look
forward to continuing to earn your trust in the months and years ahead.
Sincerely,
/s/ Robert P. Bremner
Robert P. Bremner
Chairman of the Board
October 21, 2008
Portfolio Manager's COMMENTS
Nuveen Investments Municipal Closed-End Funds | NCA, NCP, NCO,
NQC, NVC, NUC
Portfolio manager Scott Romans discusses economic and municipal market
conditions at both the national and state levels, key investment strategies, and
the twelve-month performance of these Nuveen California Municipal Funds. Scott,
who joined Nuveen in 2000, has managed these six Funds since 2003.
WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE
TWELVE-MONTH REPORTING PERIOD ENDED AUGUST 31, 2008?
During this period, developments in the credit markets led to increased price
volatility and reduced liquidity, and a general "flight-to-quality". In
September 2007, the Federal Reserve (Fed) responded to credit market volatility
by launching a series of interest rate cuts that lowered the fed funds rate by
325 basis points--from 5.25% to 2.00%--in eight months, including reductions of
125 basis points in January 2008 alone. (On October 8, 2008, after the close of
this reporting period, the Fed lowered the fed funds rate by 50 basis points,
cutting this target rate from 2.00% to 1.5%).
The Fed's rate-cutting actions also were a response to signs of slower growth in
the U.S. economy, as evidenced by changes in the U.S. gross domestic product
(GDP), a closely watched measure of economic performance. While GDP expanded at
4.8% in the third quarter of 2007, this measure fell into negative territory
(-0.2%) in the fourth quarter of 2007 before improving to 0.9% in the first
quarter of 2008 (all GDP numbers annualized). During the second quarter of 2008,
GDP grew at an annual rate of 2.8%, boosted by an acceleration in exports and
upturn in government spending, but reflecting a 13% decline in residential
investment. Driven largely by increased energy, transportation and food prices,
the Consumer Price Index (CPI) registered a 5.4% year-over-year gain as of
August 2008. The core CPI (which excludes food and energy) rose 2.5% between
September 2007 and August 2008, well above the Fed's unofficial target of 2.0%
or lower. In the labor markets, January 2008 marked the first of eight straight
months of decline in new job creation. The national unemployment rate for August
2008 was 6.1%, its highest level in five years, up from 4.7% in August 2007.
In the municipal bond market, factors related to the sub-prime mortgage crisis
had an indirect, but important, influence on performance. General concerns about
the credit markets as well as more specific concerns about municipal bond
insurers with exposure to sub-prime mortgages caused some investors to curtail
purchases. In
Discussions of specific investments are for illustrative purposes only and are
not intended as recommendations of individual investments. The views expressed
in this commentary represent those of the portfolio manager as of the date of
this report and are subject to change at any time, based on market conditions
and other factors. The Funds disclaim any obligation to advise shareholders of
such changes.
4
addition, hedge funds and other non-traditional buyers of municipal bonds began
to sell holdings of longer-maturity bonds into a market already experiencing a
lack of liquidity. Combined with the Fed rate cuts, this selling produced a
sharp steepening of the municipal yield curve, as longer-term interest rates
rose and short-term interest rates declined. In this environment, bonds with
shorter maturities generally outperformed longer-maturity bonds and higher
quality bonds tended to outperform lower quality credits.
Also of note in the municipal market, the U.S. Supreme Court in May 2008 ruled
that individual states could continue to offer their residents special tax
treatment on municipal bonds issued within their borders. The high court's
decision preserved tax rules in forty-two states, allowing them to continue to
exempt from taxation the income their residents earn on in-state municipal bonds
while taxing the income earned on municipal bonds issued in other states.
Over the twelve months ended August 2008, municipal bond issuance nationwide
totaled $462.4 billion, a decrease of 1% from the previous twelve months.
Despite disruptions in the markets, as of the end of this reporting period, up
to August 31st, new municipal issuance continued to be met with solid demand by
institutional and retail investors as well as some non-traditional buyers
returning to the market over the last few months.
HOW WERE THE ECONOMIC AND MARKET ENVIRONMENTS IN CALIFORNIA DURING THIS PERIOD?
The California economy has experienced a dramatic slowdown, with the state's
economic growth rate, as measured by GDP by state, falling from 3.8% in 2006 to
1.5% in 2007, compared with the 2007 national average of 2.0%. This dropped
California from its ranking as the thirteenth fastest growing state economy in
the U.S. to thirty-second. Declines in the construction, finance and insurance
sectors combined to account for the loss of one full percentage point from the
state's 2007 GDP growth. On the positive side, California's economy remained
relatively diverse, with international trade, technology, tourism and defense
serving as key drivers. Gains in manufacturing and private service production
industries helped to offset some of the current weakness. However, as of August
2008, California's unemployment rate had risen to 7.7%, up from 5.5% in August
2007 and the highest level since March 1996.
In addition, because California's housing market had greater exposure to
riskier, non-traditional mortgage products than most other states, the state was
hard hit by the sub-prime mortgage crisis as well as the downturn in the housing
sector. According to the Standard & Poor's/Case-Shiller home price index of
twenty major metropolitan areas, housing prices in Los Angeles, San Diego and
San Francisco fell 26.2%,
5
25.0%, and 24.8%, respectively, between August 2007 and July 2008, compared with
an average decrease of 16.3% nationwide. This placed them fourth, fifth and
sixth, respectively, in the country in loss of home value, behind Las Vegas,
Phoenix and Miami. The deterioration in household credit quality caused by
continuing problems in the housing market forced downward revisions to revenue
estimates from state and local governments, with weaker-than-projected tax
collections prompting the declaration of a state fiscal emergency in January
2008. After a record delay of eighty-five days past the official July 1
deadline, the $145 billion California state budget was signed into law in late
September 2008 (following the close of this reporting period).
In April 2008, Moody's and Standard & Poor's confirmed their ratings on
California's general obligation bonds at A1 and A+, respectively, while Fitch
maintained its A+ rating, albeit with a negative outlook. Moody's and Standard
&Poor's maintained stable outlooks for the state. For the twelve months ended
August 31, 2008, municipal issuance in California totaled $66.6 billion, a
decrease of 7% from the previous twelve months. California remained the largest
state issuer in the nation, representing more than 14% of total issuance
nationwide for the twelve months ended August 31, 2008. In terms of debt per
capita, the state ranked tenth in the nation in 2007, while debt as a percent of
personal income was 4.6%, compared with the national median of 2.4%.
WHAT KEY STRATEGIES WERE USED TO MANAGE THE CALIFORNIA FUNDS DURING THIS
REPORTING PERIOD?
During this twelve-month period, as the municipal market was characterized by
volatility and a steepening yield curve, we sought to capitalize on the
turbulent environment by continuing to focus on finding relative value by using
a fundamental approach to find sectors and individual credits with the potential
to perform well over the long term.
As municipal bonds responded to events in the general financial markets, we
found attractive opportunities in various sectors at different times. For
example, when hedge funds and high-yield funds began to sell holdings into an
illiquid market in order to meet margin requirements and redemption needs, we
took advantage of this situation to add positions in tobacco bonds and A rated
health care bonds at attractive prices. We also bought in selected new issues of
lower-rated bonds. In the spring of 2008, we saw a substantial increase in new
issuance from California hospitals seeking fixed rates on longer bonds. Many of
these issues were rated AA or A and offered attractive prices and yields, and we
took this opportunity to add to our health care positions.
To provide liquidity for purchases, we primarily sold short-dated bonds. Some of
our new additions also were funded with proceeds from bond calls.
6
As a key dimension of risk management, we employed a disciplined approach to
duration(1) positioning as an important component of our management strategies.
As part of this approach, we used inverse floating rate securities(2), a type of
derivative financial instrument, in all six of these Funds. Inverse floaters
typically provide the dual benefit of bringing the Funds' durations closer to
our strategic target and enhancing their income-generation capabilities. All of
the Funds also invested in other types of derivatives to lengthen the Funds'
durations and help us manage their common share net asset value (NAV) volatility
without having a negative impact on their income streams or common share
dividends over the short term. During periods when interest rates were lower, we
believed that managing duration synthetically through derivative positions was
more prudent than buying bonds that would extend duration but also embed lower
yields in the portfolio. As of August 31, 2008, the inverse floaters remained in
place, while the other derivative positions had been removed from the Funds.
HOW DID THE FUNDS PERFORM?
Individual results for these Nuveen California Funds, as well as relevant index
and peer group information, are presented in the accompanying table.
Annualized Total Returns on Common Share Net Asset Value
For periods ended 8/31/08
1-Year 5-Year 10-Year
NCA(3) 2.94% 4.69% 4.55%
NCP 1.23% 5.02% 5.01%
NCO 1.35% 5.07% 4.81%
NQC 1.78% 4.89% 5.00%
NVC 2.07% 5.28% 5.25%
NUC 3.51% 5.82% 5.25%
Lipper CA Municipal
Debt Funds Average(4) 0.70% 5.54% 4.78%
Lehman Brothers
CA Municipal
Bond Index(5) 3.94% 4.70% 4.87%
S&P CA Municipal
Bond Index(6) 3.93% 4.87% 4.79%
For the twelve months ended August 31, 2008, the total returns on common share
NAV for all six of these California Funds exceeded the average return for the
Lipper California Municipal Debt Funds Average. All of the Funds underperformed
both the Lehman Brothers California Tax-Exempt Bond Index and the Standard &
Poor's (S&P) California Municipal Bond Index.
Past performance is not predictive of future results. Current performance may be
higher or lower than the data shown. Returns do not reflect the deduction of
taxes that shareholders may have to pay on Fund distributions or upon the sale
of Fund shares.
For additional information, see the individual Performance Overview for your
Fund in this report.
(1) Duration is a measure of a bond's price sensitivity as interest rates
change, with longer duration bonds displaying more sensitivity to these
changes than bonds with shorter durations.
(2) An inverse floating rate security is a financial instrument designed to pay
long-term tax-exempt interest at a rate that varies inversely with a
short-term tax-exempt interest rate index. For the Nuveen Funds, the index
typically used is the Securities Industry and Financial Markets (SIFM)
Municipal Swap Index (previously referred to as the Bond Market Association
Index or BMA). Inverse floaters, including those inverse floating rate
securities in which the Funds invested during the reporting period, are
further defined within the Notes to Financial Statements and Glossary of
Terms Used in This Report sections of this shareholder report.
(3) NCA is an unleveraged Fund; the remaining five Funds in this report are
leveraged.
(4) The Lipper California Municipal Debt Funds Average is calculated using the
returns of all closed-end funds in this category for each period as
follows: 1 year, 24 funds; 5 years, 24 funds; and 10 years, 12 funds. Fund
and Lipper returns assume reinvestment of dividends.
(5) The 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.
(6) The Standard & Poor's (S&P) California Municipal Bond Index is an
unleveraged, market value-weighted index designed to measure the
performance of the investment-grade California municipal bond market.
7
Key management factors that influenced the Funds' returns included yield curve
and duration positioning, the use of derivatives, credit exposure and sector
allocations and individual security selection.
During the period, bonds with maturities between two and eight years, especially
those maturing in approximately five years, generally benefited the most, while
bonds having the longest maturities (twenty-two years and longer) posting the
worst returns. Among these Funds, NCA and NUC had the best duration positioning
during the period, that is, they were more heavily weighted in the areas of the
yield curve that performed well.
As mentioned earlier, all six of these Funds used derivative positions to
synthetically extend their durations closer to our strategic target. Despite the
fact that longer duration municipal bonds generally underperformed those with
shorter durations, the use of these derivatives had a positive overall impact on
the total returns of these Funds, especially NUC, which had a shorter underlying
duration and made the greatest use of derivative positions. This positive impact
was attributable to the fact that the derivative positions provided exposure to
taxable markets during a period when, in contrast to historical trends, the
taxable markets and the municipal market moved in the opposite directions. As
municipal market performance lagged the gains in the taxable markets, these
derivatives performed very well.
On the other hand, the inverse floaters used by these Funds generally had a
negative impact on performance. This resulted from the fact that the inverse
floaters effectively increased the Funds' exposure to longer maturity bonds at a
time when shorter maturities were in favor in the market.
Because risk-averse investors generally sought higher quality investments as
disruptions in the financial and housing markets deepened, bonds rated AA and A
typically performed very well, while the performance of the AAA rated sector,
although positive, was hampered to some degree due to the impact of downgrades
of the insurers. Insured holdings with underlying credits that were rated BBB or
non-rated, originally purchased because of the higher yields they offered, were
disproportionately impacted (compared with bonds with underlying credits rated
AA or A ) if the insurer backing the bond was downgraded from AAA. At the same
time, bonds rated BBB or below and non-rated bonds generally posted poor
returns.
Sectors of the market that generally made positive contributions to the Funds'
performances included general obligation bonds, water and sewer, education, and
special tax issues. Pre-refunded bonds(7), which are backed by U.S. Treasury
bonds, were one of the top performing segments of the market, due primarily to
their shorter effective
(7) Pre-refunded bonds, also known as advanced refundings or refinancings,
occur when an issuer sells new bonds and uses the proceeds to fund
principal and interest payments of older existing bonds. This process often
results in lower borrowing costs for bond issuers.
8
maturities, higher credit quality and perceived safety. Among these Funds, NUC
and NCA held the heaviest weightings of pre-refunded bonds, while NCP held the
fewest.
In general, any bonds that carried credit risk, regardless of sector, tended to
perform poorly. Revenue bonds as a whole, and the industrial development and
housing sectors in particular, underperformed the general municipal market. Next
to the industrial development revenue sector, zero coupon bonds were among the
worst performing categories in the municipal market. This negatively affected
the transportation sector, especially tollroads, as these projects are often
financed with longer duration zero coupon bonds. The health care sector also
performed poorly, as did lower-rated bonds backed by the 1998 master tobacco
settlement agreement.
Individual security selection was also a factor in the Funds' performance. Early
in the period, we purchased natural gas bonds--some of which were backed by
investment banks--at distressed prices relative to new issuance. Unfortunately,
as the credit crisis continued to unfold, these bonds tended to come under
additional stress.
IMPACT OF THE FUNDS' CAPITAL STRUCTURES AND LEVERAGE STRATEGIES ON PERFORMANCE
One of the primary factors impacting the performance of NCP, NCO, NQC, NVC and
NUC relative to the returns of the unleveraged Lehman Brothers and S&P
California Municipal Bond Indexes was the Funds' use of financial leverage. (NCA
is unleveraged.) While leverage offers opportunities to generate additional
income and total returns for common shareholders, the benefits provided by
leveraging are influenced by the price movements of the bonds in each Fund's
portfolio. During this period, as yields on longer-term bonds rose and their
prices correspondingly fell, declining valuations had a negative effect on
performance that was magnified by the use of leverage. In addition, at various
points during the one-year period, the Funds' borrowing costs remained
relatively high, negatively impacting their total returns. In the turbulent
market environment of the past twelve months, the impact of any valuation change
in the Funds' holdings--whether positive or negative--was magnified by the use
of leverage.
RECENT DEVELOPMENTS IN THE CURRENT MARKET ENVIRONMENT
After the close of the reporting period, the nations' financial institutions and
financial markets - including the municipal bond market - have experienced
significant turmoil. Reductions in demand have decreased valuations of municipal
bonds across all credit ratings, especially those with lower credit ratings, and
this has generally reduced the Funds' net asset values. The municipal market is
one in which dealer firms make markets in bonds on a principal basis using their
proprietary capital and during the recent market turmoil in which these firms'
capital was severely constrained, these firms were unwilling to commit their
capital to purchase and to serve as a dealer for
9
municipal bonds. Compounding the situation was the fact that this reduction in
demand was accompanied by significant selling pressure, particularly with
respect to lower-rated municipal bonds, as institutional investors were
generally removing money from the municipal bond market. The selling pressure
created by institutional investors was at least in part caused by their need to
reduce the leveraging of their municipal investments. This deleveraging was in
part driven by the overall reduction in the amount of financing available for
such leverage, the increased costs of such leverage financing, and the need to
reduce leverage ratios that had recently increased due to the decline in
municipal bond prices. Municipal bond prices were further negatively impacted by
concerns that the need for further de-leveraging would cause selling pressure to
persist for a period of time.
In addition, the recent market turmoil (after the period-end of this report) has
resulted in a significant increase in certain short-term interest rates and a
flattening of the municipal yield curve. This affected the Funds' cost of
leverage as the rates at which the Funds' auction rate preferred shares were
resetting after the close of the reporting period were significantly higher than
historical levels. As a result, the Funds experienced leveraging costs that have
been higher than the Funds' portfolio investment yields, negatively affecting
the Funds' net earnings and total returns. While the rates at which the auction
rate preferred shares have been resetting recently have been decreasing to
historically normal levels and the yield curve has steepened, it is not yet
clear if these rates will remain at such levels.
RECENT DEVELOPMENTS REGARDING BOND INSURANCE COMPANIES
Another factor that had an impact on the performance of these Funds was their
position in bonds backed by municipal bond insurers that experienced downgrades
in their credit ratings. During the period covered by this report, ACA, AMBAC,
CIFG, FGIC, MBIA, RAAI, and XLCA experienced one or more rating reductions by at
least one or more rating agencies. At the time this report was prepared, at
least one rating agency has placed each of these insurers on "negative outlook"
or "negative credit watch," which may presage one or more rating reductions for
such insurer or insurers in the future. As concern increased about the balance
sheets of these insurers, prices on bonds insured by these companies--especially
those bonds with weaker underlying credits--declined, detracting from the Funds'
performance. In particular, NCP was significantly overweighted in bonds insured
by AMBAC, FGIC, and MBIA, which negatively affected this Fund's performance.
However, on the whole, the holdings of all of the Funds continued to be well
diversified not only between insured and uninsured bonds, but also within the
insured bond category. It is important to note that municipal bonds historically
have had a very low rate of default.
10
RECENT DEVELOPMENTS IN THE AUCTION RATE PREFERRED SECURITIES MARKETS
Beginning in February 2008, more shares for sale were submitted in the regularly
scheduled auctions for the auction rate preferred shares issued by these Funds
than there were offers to buy. This meant that these auctions "failed to clear''
and that many or all auction rate preferred shareholders who wanted to sell
their shares in these auctions were unable to do so. This decline in liquidity
in auction rate preferred shares did not lower the credit quality of these
shares, and auction rate preferred shareholders unable to sell their shares
received distributions at the "maximum rate'' applicable to failed auctions as
calculated in accordance with the pre-established terms of the auction rate
preferred shares.
On June 11, 2008, Nuveen announced the Fund Board's approval of plans to use
tender option bonds (TOBs), also known as floating rate securities, to refinance
a portion of the municipal Funds' outstanding auction rate preferred shares, for
which auctions have been failing for several months, including an initial phase
of approximately $1 billion in forty-one Funds. During the twelve-month
reporting period, NCP, NQC, NVC and NUC redeemed and/or noticed for redemption
$6,075,000, $17,075,000, $22,725,000 and $19,975,000 of their outstanding
auction rate preferred shares, respectively, at liquidation value, using the
proceeds from the issuance of TOBs.
On August 7, 2008, four municipal Funds (none of which are included in this
shareholder report) issued par redemption notices for all outstanding shares of
their auction rate preferred shares totaling $569.9 million. These redemptions
were achieved through the issuance of variable rate demand preferred shares
(VRDP) in conjunction with the proceeds from the creation of TOBs.
For current, up-to-date information, please visit the Nuveen CEF Auction Rate
Preferred Resource Center at:
http://www.nuveen.com/ResourceCenter/AuctionRatePreferred.aspx.
11
Common Share
Dividend and Share Price
INFORMATION
As previously noted, all of the Funds in this report except NCA use leverage to
potentially enhance opportunities for additional income for common shareholders.
While this strategy continued to provide incremental income, the extent of this
benefit was reduced to some degree by the borrowing costs associated with
leverage, which were relatively high at some points during the period. Some of
the Funds' income streams also were impacted as the proceeds from older,
higher-yielding bonds that matured or were called were reinvested into bonds
currently available in the market, which generally offered lower yields than the
maturing or called bonds. These factors resulted in one monthly dividend
reduction in NCP, NCO and NUC over the twelve-month period ended August 31,
2008. The dividends of NCA, NQC and NVC remained stable throughout this
reporting period.
Due to capital gains generated by normal portfolio activity, common shareholders
of these Funds received capital gains and/or net ordinary income distributions
at the end of December 2007 as follows:
Short-Term Capital Gains
Long-Term Capital Gains and/or Ordinary Income
(per share) (per share)
NCA $0.0179 --
NCP $0.0743 $0.0068
NCO $0.0744 $0.0142
NQC -- $0.0305
NVC $0.0481 --
NUC -- $0.0015
All of the Funds in this report seek to pay stable dividends at rates that
reflect each Fund's past results and projected future performance. During
certain periods, each Fund may pay dividends at a rate that may be more or less
than the amount of net investment income actually earned by the Fund during the
period. If a Fund has cumulatively earned more than it has paid in dividends, it
holds the excess in reserve as undistributed net investment income (UNII) as
part of the Fund's NAV. Conversely, if a Fund has cumulatively paid dividends in
excess of its earnings, the excess constitutes negative UNII that is likewise
reflected in the Fund's NAV. Each Fund will, over time, pay all of its net
investment income as dividends to shareholders. As of
12
August 31, 2008, all of the Funds in this report had positive UNII balances for
both financial statement and tax purposes.
COMMON SHARE REPURCHASES AND SHARE PRICE INFORMATION
On July 30, 2008, the Board of Directors/Trustees for each of Nuveen's 120
closed-end Funds approved a program under which each Fund may repurchase up to
10% of its common shares. No common shares were repurchased by these Nuveen
California Funds during the twelve-month reporting period ended August 31, 2008.
As of August 31, 2008, the Funds' common share prices were trading at discounts
to their common share NAVs as shown in the accompanying chart:
8/31/08 Twelve-Month
Discount Average Discount
NCA -0.72% -3.60%
NCP -10.50% -9.24%
NCO -10.27% -8.87%
NQC -8.79% -8.94%
NVC -9.99% -9.49%
NUC -11.20% -8.75%
13
NCA
Performance
OVERVIEW
Nuveen California
Municipal Value
Fund, Inc.
as of August 31, 2008
Pie Chart:
Credit Quality (as a % of total investments)(1)
AAA/U.S. Guaranteed 39%
AA 22%
A 19%
BBB 13%
N/R 7%
Bar Chart:
2007-2008 Monthly Tax-Free Dividends Per Common Share(3)
Sep 0.0365
Oct 0.0365
Nov 0.0365
Dec 0.0365
Jan 0.0365
Feb 0.0365
Mar 0.0365
Apr 0.0365
May 0.0365
Jun 0.0365
Jul 0.0365
Aug 0.0365
Line Chart:
Common Share Price Performance -- Weekly Closing Price
9/01/07 9.58
9.55
9.53
9.46
9.72
9.7201
9.66
9.62
9.51
9.6
9.58
9.64
9.43
9.38
9.32
9.2701
9.3
9.2
9.37
9.37
9.35
9.32
9.35
9.27
9.28
9.28
9.3
9.35
9.25
9.28
9.28
9.22
9.27
9.25
9.24
9.24
9.26
9.2
9.27
9.27
9.4
9.37
9.39
9.52
9.51
9.53
9.466
9.35
9.24
9.08
9.11
9.18
9.29
9.19
9.15
9.0899
9.0901
9.1
9.07
9.01
9
8.99
8.9799
9.03
8.99
9.04
9.05
9.16
9.1
9.16
9.1101
9.09
8.95
8.92
8.9399
8.94
8.81
8.83
8.79
8.89
8.91
8.96
9.12
9.08
9.1301
9.48
9.61
9.535
9.44
9.47
9.62
9.668
9.7
9.735
9.74
9.63
9.53
9.57
9.67
9.5801
9.52
9.51
9.52
9.51
9.63
9.63
9.75
9.8256
9.75
9.7
9.73
9.76
9.65
9.27
9.2
9.54
9.72
9.47
9.51
9.402
9.37
9.45
9.38
9.36
9.27
9.42
9.5499
9.62
9.53
9.7
9.79
9.82
9.7
9.7744
9.82
9.81
9.85
9.84
9.84
9.81
9.75
9.76
9.8
9.7
9.71
9.72
9.76
9.75
9.82
9.82
9.78
9.8
9.89
9.84
9.86
9.88
9.68
9.75
9.7
9.756
9.67
9.57
9.61
9.7
9.7
9.66
9.64
9.67
9.62
9.66
9.67
9.64
9.658
9.65
9.72
9.76
9.74
9.8
9.78
9.81
9.77
9.73
9.737
9.79
9.79
9.77
9.78
9.77
9.77
9.82
9.72
9.7
9.725
9.7
9.72
9.65
9.6825
9.588
9.56
9.49
9.4
9.4
9.49
9.51
9.49
9.51
9.51
9.46
9.4899
9.51
9.49
9.6
9.56
9.53
9.6
9.64
9.73
9.63
9.55
9.37
9.38
9.351
9.38
9.4
9.43
9.48
9.52
9.55
9.57
9.539
9.6
9.6404
9.67
9.55
9.53
9.5399
9.54
9.48
9.52
9.55
9.493
9.62
9.51
9.54
9.53
9.57
9.582
9.51
9.49
9.4701
9.55
9.6355
9.6299
8/31/08 9.6299
FUND SNAPSHOT
------------------------------------
Common Share Price $9.63
------------------------------------
Common Share
Net Asset Value $9.70
------------------------------------
Premium/(Discount) to NAV -0.72%
------------------------------------
Market Yield 4.55%
------------------------------------
Taxable-Equivalent Yield2 6.97%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $244,985
------------------------------------
Average Effective Maturity
on Securities (Years) 16.52
------------------------------------
Modified Duration 8.45
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 10/07/87)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 4.70% 2.94%
------------------------------------
5-Year 6.67% 4.69%
------------------------------------
10-Year 5.34% 4.55%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
U.S. Guaranteed 30.4%
------------------------------------
Tax Obligation/Limited 23.4%
------------------------------------
Health Care 8.7%
------------------------------------
Water and Sewer 7.7%
------------------------------------
Utilities 6.6%
------------------------------------
Long-Term Care 5.8%
------------------------------------
Tax Obligation/General 5.1%
------------------------------------
Other 12.3%
------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by ACA, AMBAC, CIFG, FGIC, MBIA, RAAI and XLCA as of
August 31, 2008. Please see the Portfolio Manager's Commentary for an
expanded discussion of the affect on the Fund of changes to the ratings of
certain bonds in the portfolio resulting from changes to the ratings of the
underlying insurers both during the period and after period end.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34.7%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(3) The Fund paid shareholders a capital gains distribution in December 2007 of
$0.0179 per share.
14
NCP
Performance
OVERVIEW
Nuveen California
Performance Plus
Municipal Fund, Inc.
as of August 31, 2008
Pie Chart:
Credit Quality (as a % of total investments)(1)
AAA/U.S. Guaranteed 26%
AA 42%
A 15%
BBB 11%
N/R 6%
Bar Chart:
2007-2008 Monthly Tax-Free Dividends Per Common Share(3)
Sep 0.0595
Oct 0.0565
Nov 0.0565
Dec 0.0565
Jan 0.0565
Feb 0.0565
Mar 0.0565
Apr 0.0565
May 0.0565
Jun 0.0565
Jul 0.0565
Aug 0.0565
Line Chart:
Common Share Price Performance -- Weekly Closing Price
9/01/07 14.05
14.07
14.09
14.07
14.18
14.29
14.254
14.21
14.339
14.44
14.34
14.28
14.01
14.1
13.96
14.04
14.01
13.96
13.91
13.91
13.98
13.96
13.82
13.9
13.8
13.77
13.73
13.66
13.6
13.57
13.68
13.6
13.62
13.62
13.65
13.63
13.66
13.55
13.56
13.5899
13.61
13.63
13.55
13.67
13.71
13.7
13.6396
13.64
13.55
13.38
13.33
13.35
13.5
13.43
13.44
13.36
13.15
13.39
13.35
13.48
13.2499
13.1
13.1099
13.17
13.25
13.21
13.2901
13.3699
13.33
13.25
13.25
13.19
12.95
12.97
13.01
13.08
12.91
12.97
12.93
12.93
12.95
13
13.08
13.15
13.33
13.67
13.75
13.98
13.97
14
13.95
13.78
13.79
13.8
13.85
13.91
13.68
13.62
13.75
13.79
13.7101
13.84
13.84
13.89
13.85
13.82
13.87
13.8799
13.87
13.86
13.88
13.88
13.98
13.81
13.17
13.17
13.32
13.19
13.07
13.0001
13.19
13.2
13.18
13.01
12.86
13.09
12.9699
13.02
12.97
13
12.99
12.84
12.87
12.81
12.68
12.65
12.75
12.74
12.77
12.81
12.85
12.93
12.98
12.97
13.01
13.14
13.07
13.09
13.19
13.29
13.22
13.28
13.37
13.3
13.25
13.222
13.23
13.33
13.28
13.32
13.23
13.23
13.12
13.12
13.14
13.11
13.12
13.17
13.17
13.21
13.22
13.22
13.2
13.19
13.23
13.21
13.31
13.19
13.2399
13.3
13.26
13.39
13.36
13.4
13.42
13.35
13.36
13.33
13.33
13.31
13.34
13.4
13.34
13.23
13.38
13.21
13.01
12.9
12.85
12.94
12.88
12.8225
12.81
12.67
12.61
12.62
12.72
12.68
12.67
12.65
12.66
12.72
12.75
12.76
12.79
12.85
12.79
12.66
12.6
12.51
12.43
12.56
12.48
12.49
12.47
12.44
12.4295
12.45
12.45
12.44
12.43
12.41
12.49
12.52
12.53
12.51
12.51
12.52
12.53
12.5
12.5
12.47
12.49
12.49
12.47
12.52
12.54
12.556
12.568
12.584
12.62
12.68
12.7
8/31/08 12.7
FUND SNAPSHOT
------------------------------------
Common Share Price $12.70
------------------------------------
Common Share
Net Asset Value $14.19
------------------------------------
Premium/(Discount) to NAV -10.50%
------------------------------------
Market Yield 5.34%
------------------------------------
Taxable-Equivalent Yield(2) 8.18%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $183,943
------------------------------------
Average Effective Maturity
on Securities (Years) 16.56
------------------------------------
Leverage-Adjusted Duration 12.00
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/15/89)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year -4.41% 1.23%
------------------------------------
5-Year 4.38% 5.02%
------------------------------------
10-Year 2.75% 5.01%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 22.1%
------------------------------------
Transportation 17.3%
------------------------------------
Tax Obligation/General 13.2%
------------------------------------
Water and Sewer 10.5%
------------------------------------
U.S. Guaranteed 9.5%
------------------------------------
Utilities 7.1%
------------------------------------
Health Care 6.8%
------------------------------------
Education and Civic
Organizations 6.0%
------------------------------------
Other 7.5%
------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by ACA, AMBAC, CIFG, FGIC, MBIA, RAAI and XLCA as of
August 31, 2008. Please see the Portfolio Manager's Commentary for an
expanded discussion of the affect on the Fund of changes to the ratings of
certain bonds in the portfolio resulting from changes to the ratings of the
underlying insurers both during the period and after period end.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34.7%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(3) The Fund paid shareholders capital gains and net ordinary income
distributions in December 2007 of $0.0811 per share.
15
NCO
Performance
OVERVIEW
Nuveen California
Municipal Market
Opportunity Fund, Inc.
as of August 31, 2008
Pie Chart:
Credit Quality (as a % of total investments)(1)
AAA/U.S. Guaranteed 29%
AA 40%
A 16%
BBB 13%
N/R 2%
Bar Chart:
2007-2008 Monthly Tax-Free Dividends Per Common Share(3)
Sep 0.0605
Oct 0.0575
Nov 0.0575
Dec 0.0575
Jan 0.0575
Feb 0.0575
Mar 0.0575
Apr 0.0575
May 0.0575
Jun 0.0575
Jul 0.0575
Aug 0.0575
Line Chart:
Common Share Price Performance -- Weekly Closing Price
9/01/07 14.37
14.36
14.42
14.57
14.65
14.61
14.65
14.6
14.55
14.41
14.25
14.16
14
13.9
13.85
14.21
14.19
14.14
14.15
14.15
14.1
14.08
14.06
14.02
13.93
14.01
14.05
14
13.94
13.9
13.82
13.82
13.81
13.88
13.89
13.93
13.93
13.93
13.86
13.81
13.8
13.79
13.79
13.75
13.72
13.74
13.77
13.76
13.65
13.45
13.42
13.38
13.25
13.11
13.05
13.04
13.15
13.2
13.09
13.164
13.3
13.198
13.18
13.26
13.33
13.44
13.5
13.57
13.48
13.45
13.47
13.34
13.2
13.09
13.18
13.16
13.05
13.12
13
13.09
12.99
13.03
13.17
13.45
13.47
13.78
13.87
14.0399
14.01
14.01
13.97
13.88
14
14.05
14.03
14.02
13.86
13.909
13.97
13.946
13.88
13.87
13.91
13.96
13.97
13.94
14
13.99
13.97
14.01
14.05
14.03
14.07
13.88
13.4
13.32
13.45
13.53
13.3401
13.27
13.43
13.28
13.16
13.08
12.86
12.91
13.05
13.15
13.16
13.16
13.11
13.18
13.0599
13.05
13.03
12.8699
13.04
12.99
13
13.08
13.2
13.14
13.1
13.14
13.1
13.24
13.16
13.21
13.44
13.47
13.38
13.376
13.54
13.42
13.37
13.33
13.42
13.45
13.4552
13.48
13.44
13.48
13.4
13.36
13.35
13.356
13.4
13.35
13.34
13.34
13.35
13.328
13.32
13.4
13.44
13.37
13.4
13.37
13.41
13.63
13.6
13.6
13.61
13.6
13.59
13.59
13.61
13.59
13.59
13.57
13.6
13.6
13.5401
13.5549
13.53
13.47
13.31
13.2
13.17
13.19
13.01
13.076
13.09
12.948
12.91
12.96
12.95
12.95
12.88
12.99
12.99
13.08
13.04
13
13.04
13.12
13.15
13.08
12.9
12.79
12.8
12.76
12.6999
12.73
12.73
12.672
12.686
12.71
12.72
12.73
12.75
12.78
12.8
12.8
12.76
12.72
12.73
12.84
12.77
12.7
12.66
12.66
12.65
12.65
12.64
12.6801
12.7
12.68
12.647
12.68
12.77
12.83
12.85
8/31/08 12.85
FUND SNAPSHOT
------------------------------------
Common Share Price $12.85
------------------------------------
Common Share
Net Asset Value $14.32
------------------------------------
Premium/(Discount) to NAV -10.27%
------------------------------------
Market Yield 5.37%
------------------------------------
Taxable-Equivalent Yield(2) 8.22%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $116,964
------------------------------------
Average Effective Maturity
on Securities (Years) 16.80
------------------------------------
Leverage-Adjusted Duration 12.02
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 5/17/90)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year -5.15% 1.35%
------------------------------------
5-Year 4.31% 5.07%
------------------------------------
10-Year 3.03% 4.81%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 17.9%
------------------------------------
Transportation 15.7%
------------------------------------
Water and Sewer 15.6%
------------------------------------
U.S. Guaranteed 15.6%
------------------------------------
Tax Obligation/General 13.7%
------------------------------------
Health Care 10.6%
------------------------------------
Other 10.9%
------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by ACA, AMBAC, CIFG, FGIC, MBIA, RAAI and XLCA as of
August 31, 2008. Please see the Portfolio Manager's Commentary for an
expanded discussion of the affect on the Fund of changes to the ratings of
certain bonds in the portfolio resulting from changes to the ratings of the
underlying insurers both during the period and after period end.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34.7%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(3) The Fund paid shareholders capital gains and net ordinary income
distributions in December 2007 of $0.0886 per share.
16
NQC
Performance
OVERVIEW
Nuveen California
Investment Quality
Municipal Fund, Inc.
as of August 31, 2008
Pie Chart:
Credit Quality (as a % of total investments)(1)
AAA/U.S. Guaranteed 25%
AA 42%
A 18%
BBB 10%
N/R 5%
Bar Chart:
2007-2008 Monthly Tax-Free Dividends Per Common Share(3)
Sep 0.0585
Oct 0.0585
Nov 0.0585
Dec 0.0585
Jan 0.0585
Feb 0.0585
Mar 0.0585
Apr 0.0585
May 0.0585
Jun 0.0585
Jul 0.0585
Aug 0.0585
Line Chart:
Common Share Price Performance -- Weekly Closing Price
9/01/07 13.71
13.75
13.81
13.9201
14.086
14.1
14.09
14.03
14
13.9
13.84
13.828
13.61
13.64
13.75
13.73
13.78
13.7
13.8
13.8
13.8
13.82
13.74
13.7
13.73
13.75
13.71
13.839
13.724
13.715
13.68
13.68
13.66
13.58
13.67
13.73
13.82
13.8599
13.79
13.72
13.7
13.76
13.72
13.83
13.83
13.83
13.82
13.8
13.66
13.55
13.5
13.43
13.33
13.08
12.93
12.84
12.9
12.99
12.96
13.16
13.18
13.11
13.07
13.07
13.16
13.28
13.34
13.404
13.44
13.35
13.32
13.21
13.12
13.04
13.04
12.97
12.94
12.94
12.94
12.99
12.94
13.08
13.07
13.22
13.42
13.75
13.79
13.98
14
14.02
13.98
13.96
13.99
14.03
14.02
13.94
13.7599
13.87
14.03
14
13.99
14
14.05
14.07
14.06
14.02
14.0699
14.04
14.04
13.96
14.07
14.13
14.247
13.89
13.61
13.5201
13.69
13.54
13.35
13.36
13.55
13.48
13.34
12.99
12.8
13.08
13.05
13.35
13.23
13.06
13.22
13.18
13.12
13.04
13.01
12.82
12.86
13
13
13.06
13.06
13.16
13.23
13.28
13.38
13.42
13.45
13.4
13.42
13.49
13.44
13.4
13.55
13.52
13.58
13.61
13.66
13.68
13.64
13.6
13.6
13.63
13.5
13.43
13.43
13.48
13.52
13.49
13.54
13.55
13.58
13.59
13.61
13.575
13.5701
13.6
13.62
13.557
13.53
13.53
13.6
13.63
13.65
13.68
13.732
13.72
13.73
13.63
13.63
13.58
13.6
13.62
13.64
13.55
13.53
13.45
13.33
13.19
13.108
13.18
13.0499
13.12
13.13
13.06
12.81
12.89
12.95
12.91
12.92
12.89
12.87
12.96
12.94
12.9
12.9399
13.02
13.01
12.91
12.9
12.85
12.79
12.8399
12.73
12.65
12.73
12.69
12.69
12.722
12.72
12.76
12.76
12.87
12.89
12.899
12.94
12.96
12.96
13.01
13.02
13.07
12.8601
12.91
12.98
12.97
12.73
12.75
12.8
12.85
12.81
12.914
12.96
12.98
13.08
8/31/08 13.08
FUND SNAPSHOT
------------------------------------
Common Share Price $13.08
------------------------------------
Common Share
Net Asset Value $14.34
------------------------------------
Premium/(Discount) to NAV -8.79%
------------------------------------
Market Yield 5.37%
------------------------------------
Taxable-Equivalent Yield(2) 8.22%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $194,772
------------------------------------
Average Effective Maturity
on Securities (Years) 17.29
------------------------------------
Leverage-Adjusted Duration 11.25
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/20/90)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 0.53% 1.78%
------------------------------------
5-Year 4.01% 4.89%
------------------------------------
10-Year 3.64% 5.00%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 26.6%
------------------------------------
Transportation 18.6%
------------------------------------
U.S. Guaranteed 14.7%
------------------------------------
Education and Civic
Organizations 9.1%
------------------------------------
Tax Obligation/General 7.8%
------------------------------------
Health Care 7.5%
------------------------------------
Water and Sewer 4.6%
------------------------------------
Other 11.1%
------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by ACA, AMBAC, CIFG, FGIC, MBIA, RAAI and XLCA as of
August 31, 2008. Please see the Portfolio Manager's Commentary for an
expanded discussion of the affect on the Fund of changes to the ratings of
certain bonds in the portfolio resulting from changes to the ratings of the
underlying insurers both during the period and after period end.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34.7%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(3) The Fund paid shareholders capital gains and net ordinary income
distributions in December 2007 of $0.0305 per share.
17
NVC
Performance
OVERVIEW
Nuveen California
Select Quality
Municipal Fund, Inc.
as of August 31, 2008
Pie Chart:
Credit Quality (as a % of total investments)(1)
AAA/U.S. Guaranteed 36%
AA 31%
A 21%
BBB 10%
N/R 2%
Bar Chart:
2007-2008 Monthly Tax-Free Dividends Per Common Share(3)
Sep 0.058
Oct 0.058
Nov 0.058
Dec 0.058
Jan 0.058
Feb 0.058
Mar 0.058
Apr 0.058
May 0.058
Jun 0.058
Jul 0.058
Aug 0.058
Line Chart:
Common Share Price Performance -- Weekly Closing Price
9/01/07 14.05
13.94
14
14.02
14.08
14.13
14.12
13.97
13.96
13.81
13.79
13.79
13.75
13.78
13.71
13.63
13.68
13.65
13.77
13.77
13.8
13.85
13.68
13.7
13.73
13.7499
13.78
13.78
13.6
13.63
13.58
13.59
13.56
13.46
13.56
13.6
13.668
13.68
13.62
13.6499
13.63
13.6
13.6
13.62
13.51
13.36
13.57
13.4
13.2
13.14
13.18
13.04
13.02
13.03
12.92
12.82
12.85
12.92
12.92
12.9
12.95
13.05
13.02
13.15
13.17
13.15
13.21
13.17
13.26
13.24
13.24
13.05
12.96
12.86
12.9
12.92
12.89
12.9
12.95
12.99
12.95
12.99
13.04
13.16
13.34
13.53
13.61
13.77
13.75
13.78
13.88
13.82
13.91
13.91
13.92
13.88
13.68
13.75
13.92
13.92
13.84
13.93
13.96
14
13.94
14.04
14.02
13.89
13.88
13.93
13.99
14.1
14.1
13.93
13.3
13.36
13.45
13.24
13.19
13.29
13.31
13.17
13.04
12.86
12.7
12.98
13.11
13.29
13.11
13.12
13.05
13.05
12.92
12.88
12.78
12.64
12.72
12.82
12.85
13
13.05
13.1
13.12
13.11
13.14
13.26
13.25
13.29
13.23
13.39
13.3
13.27
13.47
13.36
13.47
13.38
13.44
13.39
13.3718
13.39
13.4299
13.44
13.32
13.326
13.33
13.3
13.28
13.35
13.3
13.36
13.4
13.5
13.53
13.522
13.59
13.53
13.57
13.5
13.57
13.61
13.62
13.494
13.45
13.46
13.55
13.62
13.5
13.41
13.41
13.38
13.39
13.38
13.44
13.47
13.3
13.36
13.22
13.11
13
13.01
12.94
13
12.94
12.8501
12.76
12.86
12.88
12.85
12.883
12.91
12.91
13.03
12.97
12.89
12.98
13.09
12.98
12.87
12.69
12.41
12.48
12.6799
12.602
12.51
12.59
12.6
12.6
12.73
12.73
12.73
12.73
12.754
12.7301
12.8
12.76
12.65
12.6201
12.8
12.69
12.83
12.75
12.77
12.6999
12.71
12.46
12.58
12.6276
12.66
12.62
12.74
12.81
12.87
12.88
8/31/08 12.88
FUND SNAPSHOT
------------------------------------
Common Share Price $12.88
------------------------------------
Common Share
Net Asset Value $14.31
------------------------------------
Premium/(Discount) to NAV -9.99%
------------------------------------
Market Yield 5.40%
------------------------------------
Taxable-Equivalent Yield(2) 8.27%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $330,915
------------------------------------
Average Effective Maturity
on Securities (Years) 16.05
------------------------------------
Leverage-Adjusted Duration 11.88
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 5/22/91)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year -2.52% 2.07%
------------------------------------
5-Year 4.51% 5.28%
------------------------------------
10-Year 3.79% 5.25%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
U.S. Guaranteed 22.9%
------------------------------------
Tax Obligation/Limited 16.8%
------------------------------------
Tax Obligation/General 12.4%
------------------------------------
Transportation 11.6%
------------------------------------
Health Care 11.1%
------------------------------------
Utilities 9.9%
------------------------------------
Water and Sewer 4.7%
------------------------------------
Other 10.6%
------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by ACA, AMBAC, CIFG, FGIC, MBIA, RAAI and XLCA as of
August 31, 2008. Please see the Portfolio Manager's Commentary for an
expanded discussion of the affect on the Fund of changes to the ratings of
certain bonds in the portfolio resulting from changes to the ratings of the
underlying insurers both during the period and after period end.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34.7%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(3) The Fund paid shareholders a capital gains distribution in December 2007 of
$0.0481 per share.
18
NUC
Performance
OVERVIEW
Nuveen California
Quality Income
Municipal Fund, Inc.
as of August 31, 2008
Pie Chart:
Credit Quality (as a % of total investments)(1)
AAA/U.S. Guaranteed 44%
AA 31%
A 12%
BBB 10%
N/R 3%
Bar Chart:
2007-2008 Monthly Tax-Free Dividends Per Common Share(3)
Sep 0.0625
Oct 0.0595
Nov 0.0595
Dec 0.0595
Jan 0.0595
Feb 0.0595
Mar 0.0595
Apr 0.0595
May 0.0595
Jun 0.0595
Jul 0.0595
Aug 0.0595
Line Chart:
Common Share Price Performance -- Weekly Closing Price
9/01/07 14.1
14.13
14.23
14.42
14.72
14.84
14.9
14.7
14.75
14.56
14.51
14.33
14.2
14.21
14.26
14.62
14.41
14.45
14.36
14.36
14.42
14.73
14.43
14.28
14.2
14.25
14.27
14.25
14.08
14.09
13.84
13.9
13.93
13.81
13.92
13.88
13.98
13.95
13.92
13.8
13.86
13.9
13.96
14.02
14.054
14.02
13.99
13.99
13.786
13.61
13.55
13.49
13.39
13.21
13.3
13.27
13.36
13.44
13.4
13.31
13.5
13.5
13.48
13.54
13.54
13.6
13.62
13.8
13.75
13.7
13.6201
13.49
13.3
13.31
13.27
13.31
13.24
13.32
13.29
13.38
13.32
13.36
13.39
13.42
13.6
14.03
14.11
14.15
14.14
14.1799
14.16
14.12
14.29
14.26
14.274
14.24
13.95
14.06
14.22
14.28
14.22
14.19
14.2
14.25
14.25
14.28
14.3
14.29
14.2
14.23
14.3
14.3699
14.44
14.06
13.75
13.68
13.95
13.85
13.67
13.5299
13.6
13.69
13.56
13.38
13.25
13.49
13.49
13.75
13.57
13.69
13.59
13.62
13.36
13.33
13.31
13.0901
13.24
13.26
13.22
13.33
13.49
13.5
13.7
13.61
13.41
13.58
13.62
13.7
13.7
13.72
13.52
13.61
13.79
13.71
13.6899
13.7
13.79
13.86
13.8301
13.89
13.88
13.71
13.7076
13.6799
13.7
13.74
13.7
13.69
13.79
13.79
13.82
13.82
13.83
13.8466
13.87
13.83
13.84
13.74
13.86
13.95
13.78
13.91
13.9001
13.9
13.94
13.912
13.9
13.98
13.98
13.88
13.85
13.77
13.78
13.7973
13.69
13.77
13.63
13.57
13.49
13.64
13.45
13.28
13.362
13.21
13.03
13.13
13.17
13.1
13.1099
13.3
13.16
13.22
13.25
13.2
13.32
13.46
13.41
13.21
13.14
13.0499
12.95
13.08
12.92
12.87
12.98
13.01
13.08
13.05
13.05
13.09
13.05
13.15
13.15
13.2
13.189
13.12
13.09
13.01
13.059
13.1
13.07
13.09
13.0901
13.06
13
12.98
12.92
12.93
12.907
13.08
13.03
13.08
13.08
8/31/08 13.08
FUND SNAPSHOT
------------------------------------
Common Share Price $13.08
------------------------------------
Common Share
Net Asset Value $14.73
------------------------------------
Premium/(Discount) to NAV -11.20%
------------------------------------
Market Yield 5.46%
------------------------------------
Taxable-Equivalent Yield2 8.36%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $324,354
------------------------------------
Average Effective Maturity
on Securities (Years) 15.09
------------------------------------
Leverage-Adjusted Duration 12.16
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/20/91)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year -2.12% 3.51%
------------------------------------
5-Year 3.79% 5.82%
------------------------------------
10-Year 3.41% 5.25%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
U.S. Guaranteed 29.5%
------------------------------------
Tax Obligation/Limited 19.7%
------------------------------------
Tax Obligation/General 11.5%
------------------------------------
Transportation 9.4%
------------------------------------
Health Care 8.9%
------------------------------------
Water and Sewer 4.8%
------------------------------------
Utilities 4.7%
------------------------------------
Other 11.5%
------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by ACA, AMBAC, CIFG, FGIC, MBIA, RAAI and XLCA as of
August 31, 2008. Please see the Portfolio Manager's Commentary for an
expanded discussion of the affect on the Fund of changes to the ratings of
certain bonds in the portfolio resulting from changes to the ratings of the
underlying insurers both during the period and after period end.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34.7%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(3) The Fund paid shareholders a net ordinary income distribution in December
2007 of $0.0015 per share.
19
Report of
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
THE BOARDS OF DIRECTORS AND SHAREHOLDERS
NUVEEN CALIFORNIA MUNICIPAL VALUE FUND, INC.
NUVEEN CALIFORNIA PERFORMANCE PLUS MUNICIPAL FUND, INC.
NUVEEN CALIFORNIA MUNICIPAL MARKET OPPORTUNITY FUND, INC.
NUVEEN CALIFORNIA INVESTMENT QUALITY MUNICIPAL FUND, INC.
NUVEEN CALIFORNIA SELECT QUALITY MUNICIPAL FUND, INC.
NUVEEN CALIFORNIA QUALITY INCOME MUNICIPAL FUND, INC.
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of Nuveen California Municipal Value Fund, Inc.,
Nuveen California Performance Plus Municipal Fund, Inc., Nuveen California
Municipal Market Opportunity Fund, Inc., Nuveen California Investment Quality
Municipal Fund, Inc., Nuveen California Select Quality Municipal Fund, Inc. and
Nuveen California Quality Income Municipal Fund, Inc. (the "Funds"), as of
August 31, 2008, and the related statements 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. We were
not engaged to perform an audit of the Funds' internal control over financial
reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Funds' internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights, assessing the accounting principles used
and significant estimates made by management, and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of August 31, 2008, by correspondence with the custodian and
brokers or by other applicable auditing procedures where replies from brokers
were not received. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial positions of
Nuveen California Municipal Value Fund, Inc., Nuveen California 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, 2008, 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/ Ermst & Young LLP
Chicago, Illinois
October 21, 2008
20
NCA
Nuveen California Municipal Value Fund, Inc.
Portfolio of INVESTMENTS
August 31, 2008
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 3.2% (3.1% OF TOTAL INVESTMENTS)
$ 540 California County Tobacco Securitization Agency, Tobacco Settlement 6/15 at 100.00 BBB $ 492,140
Asset-Backed Bonds, Sonoma County Tobacco Securitization
Corporation, Series 2005, 4.250%, 6/01/21
2,000 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 1,674,280
Enhanced Tobacco Settlement Asset-Backed Bonds,
Series 2007A-1, 5.750%, 6/01/47
10,110 Golden State Tobacco Securitization Corporation, California, 6/22 at 100.00 BBB 5,680,101
Enhanced Tobacco Settlement Asset-Backed Bonds,
Series 2007A-2, 0.000%, 6/01/37
------------------------------------------------------------------------------------------------------------------------------------
12,650 Total Consumer Staples 7,846,521
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 0.8% (0.8% OF TOTAL INVESTMENTS)
140 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 A3 134,964
University of Redlands, Series 2005A, 5.000%, 10/01/35
California Educational Facilities Authority, Revenue Bonds, University
of the Pacific, Series 2006:
95 5.000%, 11/01/21 11/15 at 100.00 A2 96,654
125 5.000%, 11/01/25 11/15 at 100.00 A2 125,890
1,500 California Statewide Community Development Authority, 12/08 at 103.00 N/R 1,536,285
Certificates of Participation, San Diego Space and Science
Foundation, Series 1996, 7.500%, 12/01/26
------------------------------------------------------------------------------------------------------------------------------------
1,860 Total Education and Civic Organizations 1,893,793
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 8.9% (8.7% OF TOTAL INVESTMENTS)
625 Arcadia, California, Hospital Revenue Bonds, Methodist Hospital 11/08 at 100.00 BBB+ 626,181
of Southern California, Series 1992, 6.500%, 11/15/12
310 California Health Facilities Financing Authority, Revenue Bonds, 4/16 at 100.00 A+ 293,753
Kaiser Permanante System, Series 2006, 5.000%, 4/01/37
5,365 California Health Facilities Financing Authority, Revenue Bonds, 11/16 at 100.00 AA- 5,229,158
Sutter Health, Series 2007A, 5.250%, 11/15/46 (UB)
560 California Statewide Communities Development Authority, Revenue 3/15 at 100.00 A 525,997
Bonds, Adventist Health System West, Series 2005A,
5.000%, 3/01/35
3,000 California Statewide Community Development Authority, Insured 7/17 at 100.00 AAA 3,082,170
Health Facility Revenue Bonds, Catholic Healthcare West,
Series 2008K, 5.500%, 7/01/41 - AGC Insured
4,380 California Statewide Community Development Authority, Revenue 3/16 at 100.00 A+ 4,122,500
Bonds, Kaiser Permanante System, Series 2006, 5.000%, 3/01/41
1,460 California Statewide Community Development Authority, Revenue 8/16 at 100.00 A+ 1,456,846
Bonds, Kaiser Permanente System, Series 2001C, 5.250%, 8/01/31
2,710 California Statewide Community Development Authority, Revenue No Opt. Call AA 2,806,042
Bonds, Sherman Oaks Health System, Series 1998A,
5.000%, 8/01/22 - AMBAC Insured
1,285 Rancho Mirage Joint Powers Financing Authority, California, 7/17 at 100.00 A3 1,173,719
Revenue Bonds, Eisenhower Medical Center, Series 2007A,
5.000%, 7/01/38
1,000 Sierra View Local Health Care District, California, Revenue 9/17 at 100.00 N/R 924,640
Bonds, Series 2007, 5.250%, 7/01/37
21
NCA
Nuveen California Municipal Value Fund, Inc. (continued)
Portfolio of INVESTMENTS August 31, 2008
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 1,730 West Contra Costa Healthcare District, California, Certificates 7/14 at 100.00 AA $ 1,656,389
of Participation, Series 2004, 5.375%, 7/01/21 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
22,425 Total Health Care 21,897,395
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.8% (1.7% OF TOTAL INVESTMENTS)
2,490 California Statewide Community Development Authority, 7/09 at 102.00 N/R 2,502,948
Multifamily Housing Revenue Bonds, Harbor City Lights,
Series 1999Y, 6.650%, 7/01/39 (Alternative Minimum Tax)
455 Riverside County, California, Subordinate Lien Mobile Home Park 10/08 at 100.00 N/R 436,823
Revenue Bonds, Bravo Mobile Home Park Project, Series 1999B,
6.500%, 3/20/29
1,440 San Dimas Housing Authority, California, Mobile Home Park 1/09 at 102.00 N/R 1,408,925
Revenue Bonds, Charter Oak Mobile Home Estates Acquisition
Project, Series 1998A, 5.700%, 7/01/28
------------------------------------------------------------------------------------------------------------------------------------
4,385 Total Housing/Multifamily 4,348,696
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 2.4% (2.3% OF TOTAL INVESTMENTS)
365 California Housing Finance Agency, Home Mortgage Revenue 2/16 at 100.00 Aa2 371,304
Bonds, Series 2006H, 5.750%, 8/01/30 - FGIC Insured
(Alternative Minimum Tax)
4,390 California Housing Finance Agency, Home Mortgage Revenue 2/16 at 100.00 Aa2 3,600,766
Bonds, Series 2007M, 4.700%, 8/01/36 (Alternative Minimum Tax)
2,125 California State Department of Veteran Affairs, Home Purchase 12/16 at 100.00 Aa2 1,805,761
Revenue Bonds, Series 2007, 5.000%, 12/01/42
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
6,880 Total Housing/Single Family 5,777,831
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.4% (0.3% OF TOTAL INVESTMENTS)
1,000 California Pollution Control Financing Authority, Solid Waste 1/16 at 102.00 BBB 857,450
Disposal Revenue Bonds, Waste Management Inc., Series 2002A,
5.000%, 1/01/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 5.9% (5.8% OF TOTAL INVESTMENTS)
ABAG Finance Authority for Non-Profit Corporations, California,
Cal-Mortgage Revenue Bonds, Elder Care Alliance of Union City,
Series 2004:
1,850 5.400%, 8/15/24 8/14 at 100.00 A+ 1,873,810
2,130 5.600%, 8/15/34 8/14 at 100.00 A+ 2,144,953
2,505 ABAG Finance Authority for Non-Profit Corporations, California, 10/08 at 101.00 BBB- 2,520,581
Certificates of Participation, American Baptist Homes of the West,
Series 1997A, 5.750%, 10/01/17
4,000 ABAG Finance Authority for Non-Profit Corporations, California, 8/18 at 100.00 A+ 4,005,920
Health Facility Revenue Bonds, The Institute on Aging,
Series 2008A, 5.650%, 8/15/38
2,440 California Statewide Community Development Authority, 4/09 at 101.00 BBB 2,453,030
Certificates of Participation, Internext Group, Series 1999,
5.375%, 4/01/17
1,500 Riverside County Public Financing Authority, California, 5/09 at 101.00 BBB- 1,509,180
Certificates of Participation, Air Force Village West,
Series 1999, 5.750%, 5/15/19
------------------------------------------------------------------------------------------------------------------------------------
14,425 Total Long-Term Care 14,507,474
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 5.2% (5.1% OF TOTAL INVESTMENTS)
5 California State, General Obligation Bonds, Series 2004, 4/14 at 100.00 A+ 5,021
5.250%, 4/01/34
California, General Obligation Bonds, Series 2004:
500 5.000%, 2/01/20 2/14 at 100.00 A+ 515,775
5,200 5.000%, 2/01/21 2/14 at 100.00 A+ 5,333,744
1,500 Los Angeles Unified School District, California, General 7/16 at 100.00 AA- 1,540,020
Obligation Bonds, Series 2006F, 5.000%, 7/01/24 -
FGIC Insured
2,000 Puerto Rico, General Obligation and Public Improvement Bonds, No Opt. Call AA 2,074,800
Series 2001A, 5.500%, 7/01/20 - MBIA Insured
270 Roseville Joint Union High School District, Placer County, 8/15 at 100.00 AA- 274,568
California, General Obligation Bonds, Series 2006B,
5.000%, 8/01/27 - FGIC Insured
22
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 1,500 San Ramon Valley Unified School District, Contra Costa County, 8/13 at 100.00 AAA $ 1,541,730
California, General Obligation Bonds, Series 2003,
5.000%, 8/01/23 - FSA Insured
1,460 West Contra Costa Unified School District, Contra Costa 8/11 at 101.00 AAA 1,538,402
County, California, General Obligation Bonds, Series 2003B,
5.000%, 8/01/20 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
12,435 Total Tax Obligation/General 12,824,060
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 24.0% (23.4% OF TOTAL INVESTMENTS)
1,000 Artesia Redevelopment Agency, California, Tax Allocation Revenue 6/15 at 100.00 BBB 931,700
Bonds, Artesia Redevelopment Project Area, Series 2007,
5.375%, 6/01/27
Bell Community Redevelopment Agency, California, Tax Allocation
Bonds, Bell Project Area, Series 2003:
3,000 5.500%, 10/01/23 - RAAI Insured 10/13 at 100.00 BBB+ 2,978,580
1,000 5.625%, 10/01/33 - RAAI Insured 10/13 at 100.00 BBB+ 961,640
2,400 Calexico Community Redevelopment Agency, California, 8/13 at 102.00 AA 2,367,144
Tax Allocation Bonds, Merged Central Business and Residential
District Project, Series 2003C, 5.000%, 8/01/28 -
AMBAC Insured
1,790 California, Economic Recovery Revenue Bonds, Series 2004A, 7/14 at 100.00 AA+ 1,959,280
5.000%, 7/01/15
340 Capistrano Unified School District, Orange County, California, 9/15 at 100.00 N/R 330,514
Special Tax Bonds, Community Facilities District, Series 2005,
5.000%, 9/01/24 - FGIC Insured
1,005 Chino Redevelopment Agency, California, Merged Chino 9/16 at 101.00 AA 964,318
Redevelopment Project Area Tax Allocation Bonds, Series 2006,
5.000%, 9/01/38 - AMBAC Insured
Golden State Tobacco Securitization Corporation, California,
Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A,
Trust 2448:
5,025 11.686%, 6/01/35 - FGIC Insured (IF) 6/15 at 100.00 A 3,361,323
585 11.691%, 6/01/38 - FGIC Insured (IF) 6/15 at 100.00 A 382,590
Irvine, California, Unified School District, Community Facilities
District Special Tax Bonds, Series 2006A:
160 5.000%, 9/01/26 9/16 at 100.00 N/R 144,901
375 5.125%, 9/01/36 9/16 at 100.00 N/R 330,064
2,500 Kern County Board of Education, California, Certificates of 6/16 at 100.00 AA 2,503,000
Participation, Series 2006A, 5.000%, 6/01/31 - MBIA Insured
615 Los Angeles Community Redevelopment Agency, California, 9/15 at 100.00 Aa3 597,577
Lease Revenue Bonds, Manchester Social Services Project,
Series 2005, 5.000%, 9/01/37 - AMBAC Insured
2,750 Los Angeles County Schools, California, Certificates of 9/13 at 100.00 AAA 2,786,410
Participation, Pooled Financing Program, Regionalized Business
Services Corporation, Series 2003A, 5.000%, 9/01/28 -
FSA Insured
3,665 Milpitas, California, Local Improvement District 20 Limited 9/08 at 103.00 N/R 3,786,128
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 AA 1,072,024
1,145 5.250%, 9/01/23 - AMBAC Insured 9/14 at 100.00 AA 1,170,408
1,255 5.250%, 9/01/24 - AMBAC Insured 9/14 at 100.00 AA 1,279,573
420 Oakland Redevelopment Agency, California, Subordinate 3/13 at 100.00 A- 449,005
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 8,233,920
California, Special Tax Bonds, Community Facilities
District 90-1, Series 1999, 5.800%, 8/01/29 - FSA Insured
290 Rialto Redevelopment Agency, California, Tax Allocation Bonds, 9/15 at 100.00 A- 277,582
Merged Project Area, Series 2005A, 5.000%, 9/01/35 -
XLCA Insured
5,000 Riverside County Redevelopment Agency, California, Tax Allocation 10/14 at 100.00 A- 4,666,400
Housing Bonds, Series 2004A, 5.000%, 10/01/37 - XLCA Insured
360 Roseville, California, Certificates of Participation, Public 8/13 at 100.00 AA 361,699
Facilities, Series 2003A, 5.000%, 8/01/25 - AMBAC Insured
23
NCA
Nuveen California Municipal Value Fund, Inc. (continued)
Portfolio of INVESTMENTS August 31, 2008
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 3,130 San Francisco Redevelopment Agency, California, Lease Revenue 7/11 at 102.00 AA $ 3,221,803
Bonds, Moscone Convention Center, Series 2004,
5.250%, 7/01/23 - AMBAC Insured
2,750 San Jose Financing Authority, California, Lease Revenue Refunding 9/11 at 100.00 AA+ 2,844,875
Bonds, Convention Center Project, Series 2001F,
5.000%, 9/01/20 - MBIA Insured
625 San Mateo Union High School District, San Mateo County, 12/17 at 100.00 AA 610,988
California, Certificates of Participation, Phase 1, Series 2007A,
5.000%, 12/15/30 - AMBAC Insured
1,080 Shafter Joint Powers Financing Authority, California, Lease 1/09 at 100.00 A 1,088,532
Revenue Bonds, Community Correctional Facility Acquisition
Project, Series 1997A, 5.950%, 1/01/11
1,000 Simi Valley, California, Certificates of Participation, Series 2004, 9/14 at 100.00 AA 1,009,810
5.000%, 9/01/24 - AMBAC Insured
1,500 Tehachapi Redevelopment Agency, California, Tax Allocation No Opt. Call A3 1,380,375
Bonds, Series 2007, 5.250%, 12/01/37 - RAAI Insured
1,925 Travis Unified School District, Solano County, California, 9/16 at 100.00 N/R 1,750,306
Certificates of Participation, Series 2006, 5.000%, 9/01/26 -
FGIC Insured
3,845 Ventura County Superintendent of Schools, California, Certificates 12/11 at 100.00 AA 3,878,029
Participation, Series 2003, 5.000%, 12/01/27 - AMBAC Insured
1,185 Vista Joint Powers Financing Authority, California, Special Tax 9/08 at 100.00 N/R 1,178,957
Lease Revenue Refunding Bonds, Community Facilities
District 90-2, Series 1997A, 5.875%, 9/01/20
------------------------------------------------------------------------------------------------------------------------------------
60,765 Total Tax Obligation/Limited 58,859,455
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 4.2% (4.1% OF TOTAL INVESTMENTS)
2,500 Bay Area Toll Authority, California, Revenue Bonds, 4/16 at 100.00 AA 2,532,975
San Francisco Bay Area Toll Bridge, Series 2006,
5.000%, 4/01/31 (UB)
5,500 Foothill/Eastern Transportation Corridor Agency, California, 1/14 at 101.00 BBB- 5,175,280
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 1,281,375
5.500%, 7/01/30 - FSA Insured
220 Palm Springs Financing Authority, California, Palm Springs 7/14 at 102.00 N/R 192,192
International Airport Revenue Bonds, Series 2006,
5.550%, 7/01/28 (Alternative Minimum Tax)
1,245 San Francisco Airports Commission, California, Revenue Bonds, 5/09 at 101.00 AA 1,143,035
San Francisco International Airport, Second Series 1999,
Issue 23A, 5.000%, 5/01/30 - FGIC Insured (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
10,715 Total Transportation 10,324,857
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 31.2% (30.4% OF TOTAL INVESTMENTS) (4)
Burbank Redevelopment Agency, California, Tax Allocation Bonds,
Golden State Redevelopment Project, Series 2003:
1,700 5.625%, 12/01/28 (Pre-refunded 12/01/13) - FGIC Insured 12/13 at 100.00 N/R (4) 1,909,066
5,010 5.750%, 12/01/33 (Pre-refunded 12/01/13) - FGIC Insured 12/13 at 100.00 N/R (4) 5,656,290
2,400 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 N/R (4) 2,588,976
Settlement Asset-Backed Bonds, Sonoma County Tobacco
Funding Corporation, Series 2002B, 5.500%, 6/01/30
(Pre-refunded 6/01/12)
4,500 California Department of Water Resources, Power Supply Revenue 5/12 at 101.00 Aaa 4,967,145
Bonds, Series 2002A, 5.125%, 5/01/18 (Pre-refunded 5/01/12)
20 California Department of Water Resources, Water System Revenue 6/15 at 100.00 Aaa 22,364
Bonds, Central Valley Project, Series 2005AD,
5.000%, 12/01/22 (Pre-refunded 6/01/15) - FSA Insured
3,115 California Educational Facilities Authority, Revenue Bonds, 6/10 at 101.00 Baa3 (4) 3,324,390
Pooled College and University Projects, Series 2000C,
6.750%, 6/01/30 (ETM)
2,845 California, General Obligation Bonds, Series 2004, 4/14 at 100.00 AAA 3,195,390
5.250%, 4/01/34 (Pre-refunded 4/01/14)
6,260 California, Various Purpose General Obligation Bonds, 3/10 at 101.00 AAA 6,657,134
Series 2000, 5.750%, 3/01/27 (Pre-refunded 3/01/10) -
MBIA Insured
24
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 5,000 Central California Joint Powers Health Finance Authority, 2/10 at 101.00 AAA $ 5,330,800
Certificates of Participation, Community Hospitals of Central
California Obligated Group, Series 2000, 6.000%, 2/01/30
(Pre-refunded 2/01/10)
2,065 Contra Costa County, California, GNMA Mortgage-Backed No Opt. Call AAA 2,734,287
Securities Program Home Mortgage Revenue Bonds,
Series 1988, 8.250%, 6/01/21 (Alternative Minimum Tax) (ETM)
Golden State Tobacco Securitization Corporation, California,
Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2003B:
3,800 5.500%, 6/01/33 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 4,186,916
3,000 5.625%, 6/01/38 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 3,321,900
2,335 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 2,547,625
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.250%, 6/01/33 (Pre-refunded 6/01/13)
1,330 Los Angeles Community Redevelopment Agency, California, 1/09 at 100.00 BBB (4) 1,337,142
Tax Allocation Refunding Bonds, Central Business District
Redevelopment Project, Series 1987G, 6.750%, 7/01/10 (ETM)
5,000 Orange County Sanitation District, California, Certificates 8/13 at 100.00 AAA 5,586,550
of Participation, Series 2003, 5.250%, 2/01/27
(Pre-refunded 8/01/13) - FGIC Insured
8,565 Palmdale, California, GNMA Mortgage-Backed Securities No Opt. Call AAA 6,081,921
Program Single Family Mortgage Revenue Bonds, Series 1988A,
0.000%, 3/01/17 (ETM)
3,300 Puerto Rico Highway and Transportation Authority, Highway 7/12 at 100.00 AAA 3,588,915
Revenue Bonds, Series 2002D, 5.375%, 7/01/36
(Pre-refunded 7/01/12)
20,415 San Bernardino County, California, GNMA Mortgage-Backed No Opt. Call AAA 10,172,996
Securities Program Single Family Home Mortgage Revenue
Bonds, Series 1988A, 0.000%, 9/01/21
(Alternative Minimum Tax) (ETM)
3,000 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/10 at 101.00 BBB+ (4) 3,292,170
Loan Note, Series 1999A, 6.500%, 10/01/24
(Pre-refunded 10/01/10)
------------------------------------------------------------------------------------------------------------------------------------
83,660 Total U.S. Guaranteed 76,501,977
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 6.8% (6.6% OF TOTAL INVESTMENTS)
2,445 California Statewide Community Development Authority, 12/08 at 100.00 N/R 2,226,710
Certificates of Participation Refunding, Rio Bravo Fresno
Project, Series 1999A, 6.500%, 12/01/18 (5)
1,800 Long Beach Bond Finance Authority, California, Natural Gas No Opt. Call A 1,678,842
Purchase Revenue Bonds, Series 2007A, 5.500%, 11/15/37
21,500 Merced Irrigation District, California, Certificates of Participation, 9/16 at 64.56 A 8,640,205
Water and Hydroelectric System Projects, Series 2008A,
0.000%, 9/01/23
605 Merced Irrigation District, California, Electric System Revenue 9/15 at 100.00 BBB- 553,841
Bonds, Series 2005, 5.125%, 9/01/31 - XLCA Insured
3,470 Puerto Rico Industrial, Tourist, Educational, Medical and 6/10 at 101.00 Baa3 3,532,287
Environmental Control Facilities Financing Authority,
Co-Generation Facility Revenue Bonds, Series 2000A,
6.625%, 6/01/26 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
29,820 Total Utilities 16,631,885
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 7.9% (7.7% OF TOTAL INVESTMENTS)
1,480 California Department of Water Resources, Water System 6/15 at 100.00 AAA 1,542,382
Revenue Bonds, Central Valley Project, Series 2005AD,
5.000%, 12/01/22 - FSA Insured
1,500 Castaic Lake Water Agency, California, Certificates of 8/16 at 100.00 AA 1,493,220
Participation, Series 2006C, 5.000%, 8/01/36 - MBIA Insured
410 Healdsburg Public Financing Authority, California, Wastewater 4/16 at 100.00 AA 401,566
Revenue Bonds, Series 2006, 5.000%, 4/01/36 - MBIA Insured
500 Los Angeles County Sanitation Districts Financing Authority, 10/13 at 100.00 AAA 518,395
California, Senior Revenue Bonds, Capital Projects,
Series 2003A, 5.000%, 10/01/23 - FSA Insured
5,000 Los Angeles Department of Water and Power, California, 7/17 at 100.00 AA 4,981,450
Waterworks Revenue Bonds, Series 2007A-2,
5.000%, 7/01/44 - AMBAC Insured
25
NCA
Nuveen California Municipal Value Fund, Inc. (continued)
Portfolio of INVESTMENTS August 31, 2008
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
Madera Irrigation District. California, Water Revenue Refunding
Bonds, Series 2008:
$ 1,850 5.500%, 1/01/33 1/18 at 100.00 A- $ 1,840,029
3,000 5.500%, 1/01/38 1/18 at 100.00 A- 2,939,850
625 Sacramento County Sanitation District Financing Authority, 6/16 at 100.00 AA 628,944
California, Revenue Bonds, Series 2006, 5.000%, 12/01/31 -
FGIC Insured
1,580 San Diego County Water Authority, California, Water Revenue 5/12 at 101.00 AA+ 1,604,869
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+ 3,429,020
of Participation, Water Systems Project, Series 2003,
5.625%, 7/01/43
------------------------------------------------------------------------------------------------------------------------------------
19,445 Total Water and Sewer 19,379,725
------------------------------------------------------------------------------------------------------------------------------------
$ 280,465 Total Investments (cost $248,196,247) - 102.7% 251,651,119
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (2.2)% (5,451,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (0.5)% (1,215,010)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $244,985,109
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common Shares unless
otherwise noted.
(2) Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates (month
and year) and prices of the earliest optional call or
redemption. There may be other call provisions at varying
prices at later dates. Certain mortgage-backed securities
may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered
public accounting firm): Using the higher of Standard &
Poor's Group ("Standard & Poor's") or Moody's Investor
Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
The Portfolio of Investments may reflect the ratings on
certain bonds insured by ACA, AMBAC, CIFG, FGIC, MBIA, RAAI
and XLCA as of August 31, 2008. Please see the Portfolio
Manager's Commentary for an expanded discussion of the
affect on the Fund of changes to the ratings of certain
bonds in the portfolio resulting from changes to the ratings
of the underlying insurers both during the period and after
period end.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which ensure
the timely payment of principal and interest. Such
investments are normally considered to be equivalent to AAA
rated securities.
(5) This debt has been restructured to accommodate capital
maintenance at the facility. Major highlights of the debt
restructuring include the following: (1) the principal
balance outstanding on and after December 1, 2007, shall
accrue interest at a rate of 6.500% per annum commencing
December 1, 2007; (2) the interest shall accrue but not be
payable on June 1, 2008 or December 1, 2008, but shall
instead be deferred and paid by the end of calendar year
2011; (3) no principal component shall be pre-payable from
the Minimum Sinking Fund Account during calendar years 2008
and 2009 but such pre-payments shall recommence beginning in
calendar year 2010 according to a revised schedule.
Management believes that the restructuring is in the best
interest of Fund shareholders and that it is
more-likely-than-not that the borrower will fulfill its
obligation. Consequently, the Fund continues to accrue
interest on this obligation.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected
as a financing transaction pursuant to the provisions of
SFAS No. 140.
See accompanying notes to financial statements.
26
NCP
Nuveen California Performance Plus Municipal Fund, Inc.
Portfolio of INVESTMENTS
August 31, 2008
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 5.4% (3.5% OF TOTAL INVESTMENTS)
$ 645 California County Tobacco Securitization Agency, Tobacco 6/15 at 100.00 BBB $ 587,834
Settlement Asset-Backed Bonds, Sonoma County Tobacco
Securitization Corporation, Series 2005, 4.250%, 6/01/21
3,000 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 2,511,420
Enhanced Tobacco Settlement Asset-Backed Bonds,
Series 2007A-1, 5.750%, 6/01/47
12,135 Golden State Tobacco Securitization Corporation, California, 6/22 at 100.00 BBB 6,817,807
Enhanced Tobacco Settlement Asset-Backed Bonds,
Series 2007A-2, 0.000%, 6/01/37
------------------------------------------------------------------------------------------------------------------------------------
15,780 Total Consumer Staples 9,917,061
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 9.3% (6.0% OF TOTAL INVESTMENTS)
160 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 A3 154,245
University of Redlands, Series 2005A, 5.000%, 10/01/35
California Educational Facilities Authority, Revenue Bonds,
University of the Pacific, Series 2006:
110 5.000%, 11/01/21 11/15 at 100.00 A2 111,915
150 5.000%, 11/01/25 11/15 at 100.00 A2 151,068
4,730 California Infrastructure Economic Development Bank, 10/11 at 101.00 A- 4,858,467
Revenue Bonds, J. David Gladstone Institutes, Series 2001,
5.500%, 10/01/21
1,322 California State Public Works Board, Lease Revenue Bonds, 3/18 at 100.00 Aa2 1,248,550
University of California Regents, Trust 1065,
13.699%, 3/01/33 (IF)
4,730 California State University, Systemwide Revenue Bonds, 11/12 at 100.00 AA 4,916,126
Series 2002A, 5.000%, 11/01/19 - AMBAC Insured
4,000 San Diego County, California, Certificates of Participation, 9/15 at 102.00 Baa3 3,531,560
Burnham Institute, Series 2006, 5.000%, 9/01/34
2,000 University of California, Revenue Bonds, Multi-Purpose 5/13 at 100.00 AA 2,157,580
Projects, Series 2008, 5.125%, 5/15/17 - AMBAC Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
17,202 Total Education and Civic Organizations 17,129,511
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 10.6% (6.8% OF TOTAL INVESTMENTS)
375 California Health Facilities Financing Authority, Revenue Bonds, 4/16 at 100.00 A+ 355,346
Kaiser Permanante System, Series 2006, 5.000%, 4/01/37
6,385 California Health Facilities Financing Authority, Revenue Bonds, 11/16 at 100.00 AA- 6,223,332
Sutter Health, Series 2007A, 5.250%, 11/15/46 (UB)
1,650 California Municipal Financing Authority, Certificates of 2/17 at 100.00 Baa2 1,427,069
Participation, Community Hospitals of Central California,
Series 2007, 5.250%, 2/01/46
1,000 California Statewide Community Development Authority, 7/15 at 100.00 BBB+ 921,840
Revenue Bonds, Daughters of Charity Health System,
Series 2005A, 5.250%, 7/01/30
5,220 California Statewide Community Development Authority, 3/16 at 100.00 A+ 4,913,116
Revenue Bonds, Kaiser Permanante System, Series 2006,
5.000%, 3/01/41
1,755 California Statewide Community Development Authority, 8/16 at 100.00 A+ 1,751,209
Revenue Bonds, Kaiser Permanente System, Series 2001C,
5.250%, 8/01/31
27
NCP
Nuveen California Performance Plus Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS August 31, 2008
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 1,355 California Statewide Community Development Authority, No Opt. Call AA $ 1,403,021
Revenue Bonds, Sherman Oaks Health System, Series 1998A,
5.000%, 8/01/22 - AMBAC Insured
895 California Statewide Communities Development Authority, 7/18 at 100.00 AAA 924,589
Revenue Bonds, Saint Joseph Health System, Trust 2554,
14.166%, 7/01/47 - FSA Insured (IF)
1,600 The Regents of the University of California, Medical Center 5/15 at 101.00 AA 1,480,944
Pooled Revenue Bonds, Series 2007A, 4.500%, 5/15/37 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
20,235 Total Health Care 19,400,466
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 2.9% (1.9% OF TOTAL INVESTMENTS)
1,500 California Statewide Community Development Authority, 8/12 at 100.00 Baa1 1,481,985
Student Housing Revenue Bonds, EAH - Irvine East Campus
Apartments, LLC Project, Series 2002A, 5.500%, 8/01/22 -
ACA Insured
3,915 Los Angeles, California, GNMA Collateralized Multifamily 9/08 at 101.00 AAA 3,917,153
Housing Revenue Bonds, Ridgecroft Apartments, Series 1997E,
6.250%, 9/20/39 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
5,415 Total Housing/Multifamily 5,399,138
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.3% (0.2% OF TOTAL INVESTMENTS)
440 California Housing Finance Agency, Home Mortgage Revenue 2/16 at 100.00 Aa2 447,599
Bonds, Series 2006H, 5.750%, 8/01/30 - FGIC Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.6% (0.4% OF TOTAL INVESTMENTS)
1,250 California Pollution Control Financing Authority, Solid Waste 1/16 at 102.00 BBB 1,071,813
Disposal Revenue Bonds, Waste Management Inc.,
Series 2002A, 5.000%, 1/01/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.3% (1.5% OF TOTAL INVESTMENTS)
4,500 California Statewide Communities Development Authority, 12/17 at 100.00 Baa1 4,269,735
Revenue Bonds, Inland Regional Center Project, Series 2007,
5.250%, 12/01/27
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 20.5% (13.2% OF TOTAL INVESTMENTS)
5 California State, General Obligation Bonds, Series 2004, 4/14 at 100.00 A+ 5,021
5.250%, 4/01/34
2,000 California, General Obligation Bonds, Series 2003, 8/13 at 100.00 A+ 2,078,820
5.250%, 2/01/22 - CIFG Insured
California, General Obligation Bonds, Series 2004:
500 5.000%, 2/01/23 2/14 at 100.00 A+ 508,525
3,950 5.200%, 4/01/26 4/14 at 100.00 A+ 4,028,803
3,550 Centinela Valley Union High School District, Los Angeles No Opt. Call AA 3,631,473
County, California, General Obligation Bonds, Series 2002A,
5.250%, 2/01/26 - MBIA Insured
1,400 Los Rios Community College District, Sacramento, El Dorado 8/14 at 102.00 Aaa 1,469,958
and Yolo Counties, California, General Obligation Bonds,
Series 2008, 5.000% 8/01/24 - FSA Insured (UB)
3,200 Murrieta Valley Unified School District, Riverside County, 9/17 at 100.00 AAA 3,053,664
California, General Obligation Bonds, Series 2007,
4.500%, 9/01/30 - FSA Insured
4,765 North Orange County Community College District, California, No Opt. Call AA 1,761,096
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 AA 2,730,479
Obligation Refunding Bonds, Series 2001A, 5.750%, 8/01/30 -
MBIA Insured
6,000 Puerto Rico, General Obligation and Public Improvement Bonds, No Opt. Call AA 6,373,920
Series 1993, 7.000%, 7/01/10 - MBIA Insured
Riverside Community College District, California, General
Obligation Bonds, Series 2004A:
15 5.250%, 8/01/25 - MBIA Insured 8/14 at 100.00 AA 15,746
20 5.250%, 8/01/26 - MBIA Insured 8/14 at 100.00 AA 20,811
325 Roseville Joint Union High School District, Placer County, 8/15 at 100.00 AA- 330,499
California, General Obligation Bonds, Series 2006B,
5.000%, 8/01/27 - FGIC Insured
4,000 San Diego Unified School District, San Diego County, 7/13 at 101.00 AAA 4,408,480
California, General Obligation Bonds, Series 2003E,
5.250%, 7/01/22 - FSA Insured
28
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 3,000 San Jose-Evergreen Community College District, Santa Clara 9/10 at 100.00 Aa2 $ 3,186,270
County, California, General Obligation Bonds, Series 2000B,
5.600%, 9/01/24 - FGIC Insured
2,200 Santa Maria Joint Union High School District, Santa Barbara No Opt. Call Aaa 2,538,998
and San Luis Obispo Counties, California, General Obligation
Bonds, Series 2003B, 5.625%, 8/01/24 - FSA Insured
1,440 Southwestern Community College District, San Diego County, 8/15 at 102.00 AA 1,506,600
California, General Obligation Bonds, Series 2005,
5.000%, 8/01/24 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
38,945 Total Tax Obligation/General 37,649,163
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 34.2% (22.1% OF TOTAL INVESTMENTS)
5,045 California State Public Works Board, Lease Revenue Bonds, 3/12 at 100.00 AA 5,212,847
Department of Corrections, Series 2002A, 5.250%, 3/01/22 -
AMBAC Insured
1,575 California State Public Works Board, Lease Revenue Bonds, 12/13 at 100.00 A 1,662,948
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 3,217,841
Department of Mental Health, Coalinga State Hospital,
Series 2004A, 5.500%, 6/01/19
2,195 California, Economic Recovery Revenue Bonds, 7/14 at 100.00 AA+ 2,402,581
Series 2004A, 5.000%, 7/01/15
400 Capistrano Unified School District, Orange County, California, 9/15 at 100.00 N/R 388,840
Special Tax Bonds, Community Facilities District, Series 2005,
5.000%, 9/01/24 - FGIC Insured
1,210 Chino Redevelopment Agency, California, Merged Chino 9/16 at 101.00 AA 1,161,019
Redevelopment Project Area Tax Allocation Bonds,
Series 2006, 5.000%, 9/01/38 - AMBAC Insured
2,000 Coachella Valley Unified School District, Riverside County, 9/16 at 100.00 Aa3 1,951,920
California, Certificates of Participation, Series 2007,
5.000%, 9/01/31 - AMBAC Insured
2,500 Corona Public Financing Authority, California, Superior Lien 9/09 at 102.00 AAA 2,610,325
Revenue Bonds, Series 1999A, 5.000%, 9/01/20 - FSA Insured
1,660 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 AA 1,167,710
Enhanced Asset Backed Settlement Revenue Bonds,
Series 2005A, Trust Series 1500, 10.450%, 6/01/45 -
AMBAC Insured (IF)
1,045 Hawthorne Community Redevelopment Agency, California, 9/16 at 100.00 A- 1,035,909
Project Area 2 Tax Allocation Bonds, Series 2006,
5.250%, 9/01/36 - XLCA Insured
1,750 Hesperia Community Redevelopment Agency, California, Tax 9/15 at 100.00 A- 1,734,180
Allocation Bonds, Series 2005A, 5.000%, 9/01/25 - XLCA Insured
Irvine, California, Unified School District, Community Facilities
District Special Tax Bonds, Series 2006A:
195 5.000%, 9/01/26 9/16 at 100.00 N/R 176,598
450 5.125%, 9/01/36 9/16 at 100.00 N/R 396,077
730 Los Angeles Community Redevelopment Agency, California, 9/15 at 100.00 Aa3 709,319
Lease Revenue Bonds, Manchester Social Services Project,
Series 2005, 5.000%, 9/01/37 - AMBAC Insured
10,000 Los Angeles County Public Works Financing Authority, California, 9/16 at 100.00 N/R 9,265,799
Lease Revenue Bonds, Series 2006B, 5.000%, 9/01/31 -
FGIC Insured
4,000 Los Angeles, California, Municipal Improvement Corporation, 1/17 at 100.00 AA- 3,799,000
Lease Revenue Bonds, Police Headquarters, Series 2006A,
4.750%, 1/01/31 - FGIC Insured
1,395 Moreno Valley Unified School District, Riverside County, 3/14 at 100.00 AAA 1,438,970
California, Certificates of Participation, Series 2005,
5.000%, 3/01/22 - FSA Insured
3,500 Murrieta Redevelopment Agency, California, Tax Allocation 8/17 at 100.00 AA 3,365,390
Bonds, Series 2007A, 5.000%, 8/01/37 - MBIA Insured
1,000 Paramount Redevelopment Agency, California, Tax Allocation 8/13 at 100.00 AA 1,018,290
Bonds, Redevelopment Project Area 1, Series 2003,
5.000%, 8/01/23 - MBIA Insured
350 Rialto Redevelopment Agency, California, Tax Allocation Bonds, 9/15 at 100.00 A- 335,013
Merged Project Area, Series 2005A, 5.000%, 9/01/35 -
XLCA Insured
1,500 Riverside County Public Financing Authority, California, 10/15 at 100.00 BBB 1,361,490
Tax Allocation Bonds, Multiple Projects, Series 2005A,
5.000%, 10/01/37 - XLCA Insured
29
NCP
Nuveen California Performance Plus Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS August 31, 2008
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,000 Rohnert Park Community Development Commission, California, 8/17 at 100.00 A- $ 952,980
Redevelopment Project Tax Allocation Bonds, Series 2007R,
5.000%, 8/01/37 - FGIC Insured
435 Roseville, California, Certificates of Participation, Public 8/13 at 100.00 AA 437,053
Facilities, Series 2003A, 5.000%, 8/01/25 - AMBAC Insured
1,000 Sacramento City Financing Authority, California, Lease Revenue No Opt. Call AA 1,088,570
Refunding Bonds, Series 1993A, 5.400%, 11/01/20 - MBIA Insured
5,000 San Marcos Public Facilities Authority, California, Tax Allocation 8/15 at 100.00 AA 4,827,650
Bonds, Project Areas 2 and 3, Series 2005C, 5.000%, 8/01/35 -
AMBAC Insured
750 San Mateo Union High School District, San Mateo County, 12/17 at 100.00 AA 733,185
California, Certificates of Participation, Phase 1, Series 2007A,
5.000%, 12/15/30 - AMBAC Insured
Santa Clara Redevelopment Agency, California, Tax Allocation
Bonds, Bayshore North Project, Series 2003:
2,695 5.000%, 6/01/20 - MBIA Insured 6/13 at 100.00 AA 2,772,616
1,500 5.000%, 6/01/21 - MBIA Insured 6/13 at 100.00 AA 1,535,880
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 2,059,540
4,015 5.000%, 9/01/24 - FSA Insured 9/12 at 102.00 AAA 4,094,216
------------------------------------------------------------------------------------------------------------------------------------
63,905 Total Tax Obligation/Limited 62,913,756
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 26.8% (17.3% OF TOTAL INVESTMENTS)
1,430 Bay Area Toll Authority, California, Revenue Bonds, San Francisco 4/16 at 100.00 AA 1,448,862
Bay Area Toll Bridge, Series 2006, 5.000%, 4/01/31 (UB)
1,425 Bay Area Toll Authority, California, Revenue Bonds, San Francisco 4/18 at 100.00 AA 1,505,000
Bay Area Toll Bridge, Series 2008, Trust 2921,
13.428%, 4/01/39 (IF)
6,500 Foothill/Eastern Transportation Corridor Agency, California, 1/14 at 101.00 BBB- 6,030,310
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 2,904,208
11,885 5.750%, 5/15/15 (Alternative Minimum Tax) 5/10 at 101.00 AA 12,597,267
8,550 Port of Oakland, California, Revenue Bonds, Series 2000K, 5/10 at 100.00 A+ 8,558,635
5.750%, 11/01/29 - FGIC Insured (Alternative Minimum Tax)
14,000 San Francisco Airports Commission, California, Revenue Bonds, 5/10 at 101.00 AAA 14,142,378
San Francisco International Airport, Second Series 2000,
Issue 25, 5.500%, 5/01/24 - FSA Insured
(Alternative Minimum Tax)
2,000 San Francisco Airports Commission, California, Revenue 5/11 at 100.00 A1 2,020,780
Refunding Bonds, San Francisco International Airport,
Second Series 2001, Issue 27B, 5.000%, 5/01/23 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
48,530 Total Transportation 49,207,440
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 14.6% (9.5% OF TOTAL INVESTMENTS) (4)
1,125 California County Tobacco Securitization Agency, Tobacco 6/10 at 100.00 N/R (4) 1,155,071
Settlement Asset-Backed Bonds, Sonoma County Tobacco
Funding Corporation, Series 2002B, 5.125%, 6/01/20
(Pre-refunded 6/01/10)
5,360 California Infrastructure Economic Development Bank, First No Opt. Call AAA 5,829,643
Lien Revenue Bonds, San Francisco Bay Area Toll Bridge,
Series 2003A, 5.000%, 7/01/23 - FSA Insured (ETM)
4,000 Contra Costa County, California, GNMA Mortgage-Backed No Opt. Call AAA 5,296,440
Securities Program Home Mortgage Revenue Bonds,
Series 1988, 8.250%, 6/01/21 (Alternative Minimum Tax) (ETM)
3,750 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 4,131,825
Enhanced Tobacco Settlement Asset-Backed Bonds,
Series 2003B, 5.500%, 6/01/33 (Pre-refunded 6/01/13)
3,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 3,469,740
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.750%, 6/01/39 (Pre-refunded 6/01/13)
2,500 Los Angeles Unified School District, California, General 7/10 at 100.00 AA- (4) 2,654,550
Obligation Bonds, Series 2000D, 5.375%, 7/01/25
(Pre-refunded 7/01/10) - FGIC Insured
30
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 4,000 Puerto Rico Highway and Transportation Authority, Highway 7/12 at 100.00 AAA $ 4,350,200
Revenue Bonds, Series 2002D, 5.375%, 7/01/36
(Pre-refunded 7/01/12)
------------------------------------------------------------------------------------------------------------------------------------
23,735 Total U.S. Guaranteed 26,887,469
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 10.9% (7.1% OF TOTAL INVESTMENTS)
4,210 California Statewide Community Development Authority, 12/08 at 100.00 N/R 3,834,131
Certificates of Participation Refunding, Rio Bravo Fresno
Project, Series 1999A, 6.500%, 12/01/18 (5)
2,140 Long Beach Bond Finance Authority, California, Natural Gas No Opt. Call A 1,995,957
Purchase Revenue Bonds, Series 2007A, 5.500%, 11/15/37
725 Los Angeles Department of Water and Power, California, 7/13 at 100.00 AA 750,796
Power System Revenue Bonds, Series 2003A-2,
5.000%, 7/01/21 - MBIA Insured
500 Los Angeles Department of Water and Power, California, 7/15 at 100.00 Aaa 506,325
Power System Revenue Bonds, Series 2008, 5.000%, 7/01/31 -
FSA Insured (UB)
715 Merced Irrigation District, California, Electric System Revenue 9/15 at 100.00 BBB- 654,540
Bonds, Series 2005, 5.125%, 9/01/31 - XLCA Insured
10,450 Orange County Public Financing Authority, California, Waste No Opt. Call Aa3 10,851,593
Management System Revenue Refunding Bonds, Series 1997,
5.250%, 12/01/13 - AMBAC Insured (Alternative Minimum Tax)
1,000 Sacramento Municipal Utility District, California, Electric Revenue No Opt. Call A1 1,021,670
Bonds, Series 2004T, 5.250%, 5/15/23 - FGIC Insured
500 Sacramento Municipal Utility District, California, Electric Revenue 8/12 at 100.00 AAA 518,225
Refunding Bonds, Series 2002Q, 5.250%, 8/15/22 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
20,240 Total Utilities 20,133,237
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 16.2% (10.5% OF TOTAL INVESTMENTS)
1,000 California Statewide Community Development Authority, Water 10/13 at 100.00 AAA 1,037,410
and Wastewater Revenue Bonds,Pooled Financing Program,
Series 2003A, 5.250%, 10/01/23 - FSA Insured
2,500 El Centro Financing Authority, California, Water Revenue Bonds, 10/16 at 100.00 AAA 2,441,625
Series 2006A, 4.750%, 10/01/31 - FSA Insured
490 Healdsburg Public Financing Authority, California, Wastewater 4/16 at 100.00 AA 479,921
Revenue Bonds, Series 2006, 5.000%, 4/01/36 - MBIA Insured
4,770 Los Angeles Department of Water and Power, California, 7/14 at 100.00 AA 5,119,832
Waterworks Revenue Bonds, Series 2004C, 5.250%, 7/01/20 -
MBIA Insured
2,500 Pajaro Valley Water Management Agency, California, Revenue 3/09 at 101.00 AA 2,550,225
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 6,382,404
California, Revenue Bonds, Series 2000A, 5.250%, 12/01/12
4,000 Sacramento County Sanitation District Financing Authority, No Opt. Call AA 4,486,160
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 AA 4,754,691
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 N/R 1,705,219
Bonds, Water and Sewer System Projects, Series 2001,
5.000%, 10/01/22 - FGIC Insured
31
NCP
Nuveen California Performance Plus Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS August 31, 2008
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 945 Woodbridge Irrigation District, California, Certificates of 7/13 at 100.00 BBB+ $ 925,835
Participation, Water Systems Project, Series 2003,
5.625%, 7/01/43
------------------------------------------------------------------------------------------------------------------------------------
28,475 Total Water and Sewer 29,883,322
------------------------------------------------------------------------------------------------------------------------------------
$ 288,652 Total Investments (cost $283,804,797) - 154.6% 284,309,710
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (4.5)% (8,255,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 4.2% 7,813,230
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (54.3)% (6) (99,925,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $183,942,940
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
(2) Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates (month
and year) and prices of the earliest optional call or
redemption. There may be other call provisions at varying
prices at later dates. Certain mortgage-backed securities
may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered
public accounting firm): Using the higher of Standard &
Poor's Group ("Standard & Poor's") or Moody's Investor
Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
The Portfolio of Investments may reflect the ratings on
certain bonds insured by ACA, AMBAC, CIFG, FGIC, MBIA, RAAI
and XLCA as of August 31, 2008. Please see the Portfolio
Manager's Commentary for an expanded discussion of the
affect on the Fund of changes to the ratings of certain
bonds in the portfolio resulting from changes to the ratings
of the underlying insurers both during the period and after
period end.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which ensure
the timely payment of principal and interest. Such
investments are normally considered to be equivalent to AAA
rated securities.
(5) This debt has been restructured to accommodate capital
maintenance at the facility. Major highlights of the debt
restructuring include the following: (1) the principal
balance outstanding on and after December 1, 2007, shall
accrue interest at a rate of 6.500% per annum commencing
December 1, 2007; (2) the interest shall accrue but not be
payable on June 1, 2008 or December 1, 2008, but shall
instead be deferred and paid by the end of calendar year
2011; (3) no principal component shall be pre-payable from
the Minimum Sinking Fund Account during calendar years 2008
and 2009 but such pre-payments shall recommence beginning in
calendar year 2010 according to a revised schedule.
Management believes that the restructuring is in the best
interest of Fund shareholders and that it is
more-likely-than-not that the borrower will fulfill its
obligation. Consequently, the Fund continues to accrue
interest on this obligation.
(6) Preferred Shares, at Liquidation Value as a percentage of
Total Investments is 35.1%.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected
as a financing transaction pursuant to the provisions of
SFAS No. 140.
See accompanying notes to financial statements.
32
NCO
Nuveen California Municipal Market Opportunity Fund, Inc.
Portfolio of INVESTMENTS
August 31, 2008
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 5.6% (3.6% OF TOTAL INVESTMENTS)
$ 410 California County Tobacco Securitization Agency, Tobacco 6/15 at 100.00 BBB $ 373,662
Settlement Asset-Backed Bonds, Sonoma County Tobacco
Securitization Corporation, Series 2005, 4.250%, 6/01/21
2,000 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 1,674,280
Enhanced Tobacco Settlement Asset-Backed Bonds,
Series 2007A-1, 5.750%, 6/01/47
8,090 Golden State Tobacco Securitization Corporation, California, 6/22 at 100.00 BBB 4,545,205
Enhanced Tobacco Settlement Asset-Backed Bonds,
Series 2007A-2, 0.000%, 6/01/37
------------------------------------------------------------------------------------------------------------------------------------
10,500 Total Consumer Staples 6,593,147
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 3.3% (2.1% OF TOTAL INVESTMENTS)
100 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 A3 96,403
University of Redlands, Series 2005A, 5.000%, 10/01/35
California Educational Facilities Authority, Revenue Bonds,
University of the Pacific, Series 2006:
70 5.000%, 11/01/21 11/15 at 100.00 A2 71,219
95 5.000%, 11/01/25 11/15 at 100.00 A2 95,676
1,000 California Infrastructure Economic Development Bond Bank, 7/15 at 100.00 Aa3 1,030,880
Revenue Bonds, Scripps Research Institute, Series 2005A,
5.000%, 7/01/24
840 California State Public Works Board, Lease Revenue Bonds, 3/18 at 100.00 AA- 793,330
University of California Regents, Trust 1065,
13.699%, 3/01/33 (IF)
2,000 San Diego County, California, Certificates of Participation, 9/15 at 102.00 Baa3 1,765,780
Burnham Institute, Series 2006, 5.000%, 9/01/34
------------------------------------------------------------------------------------------------------------------------------------
4,105 Total Education and Civic Organizations 3,853,288
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 16.6% (10.6% OF TOTAL INVESTMENTS)
240 California Health Facilities Financing Authority, Revenue 4/16 at 100.00 A+ 227,422
Bonds, Kaiser Permanante System, Series 2006,
5.000%, 4/01/37
5,305 California Health Facilities Financing Authority, Revenue Bonds, 11/16 at 100.00 AA- 5,170,677
Sutter Health, Series 2007A, 5.250%, 11/15/46 (UB)
3,200 California Infrastructure Economic Development Bank, Revenue 8/11 at 102.00 A+ 3,222,816
Bonds, Kaiser Hospital Assistance LLC, Series 2001A,
5.550%, 8/01/31
1,060 California Municipal Financing Authority, Certificates of 2/17 at 100.00 Baa2 916,783
Participation, Community Hospitals of Central California,
Series 2007, 5.250%, 2/01/46
1,120 California Statewide Communities Development Authority, 3/15 at 100.00 A 1,051,994
Revenue Bonds, Adventist Health System West, Series 2005A,
5.000%, 3/01/35
1,000 California Statewide Community Development Authority, Insured 10/17 at 100.00 A+ 929,160
Health Facility Revenue Bonds, Henry Mayo Newhall Memorial
Hospital, Series 2007A, 5.000%, 10/01/37
3,340 California Statewide Community Development Authority, Revenue 3/16 at 100.00 A+ 3,143,641
Bonds, Kaiser Permanante System, Series 2006,
5.000%, 3/01/41
135 California Statewide Community Development Authority, Revenue 8/16 at 100.00 A+ 134,708
Bonds, Kaiser Permanente System, Series 2001C,
5.250%, 8/01/31
33
NCO
Nuveen California Municipal Market Opportunity Fund, Inc. (continued)
Portfolio of INVESTMENTS August 31, 2008
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 675 California Statewide Community Development Authority, Revenue No Opt. Call AA $ 698,922
Bonds, Sherman Oaks Health System, Series 1998A,
5.000%, 8/01/22 - AMBAC Insured
569 California Statewide Communities Development Authority, 7/18 at 100.00 AAA 587,811
Revenue Bonds, Saint Joseph Health System, Trust 2554,
14.166%, 7/01/47 - FSA Insured (IF)
2,570 Rancho Mirage Joint Powers Financing Authority, California, 7/17 at 100.00 A3 2,347,438
Revenue Bonds, Eisenhower Medical Center, Series 2007A,
5.000%, 7/01/38
1,000 The Regents of the University of California, Medical Center 5/15 at 101.00 AA 925,590
Pooled Revenue Bonds, Series 2007A, 4.500%, 5/15/37 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
20,214 Total Health Care 19,356,962
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.3% (0.2% OF TOTAL INVESTMENTS)
280 California Housing Finance Agency, Home Mortgage Revenue 2/16 at 100.00 Aa2 284,836
Bonds, Series 2006H, 5.750%, 8/01/30 - FGIC Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.5% (0.4% OF TOTAL INVESTMENTS)
750 California Pollution Control Financing Authority, Solid Waste 1/16 at 102.00 BBB 643,088
Disposal Revenue Bonds, Waste Management Inc.,
Series 2002A, 5.000%, 1/01/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.4% (1.5% OF TOTAL INVESTMENTS)
2,900 California Statewide Communities Development Authority, 12/17 at 100.00 Baa1 2,751,607
Revenue Bonds, Inland Regional Center Project, Series 2007,
5.250%, 12/01/27
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 21.3% (13.7% OF TOTAL INVESTMENTS)
4,125 Alameda Unified School District, Alameda County, California, No Opt. Call AAA 1,759,189
General Obligation Bonds, Series 2004A, 0.000%, 8/01/25 -
FSA Insured
California, General Obligation Bonds, Series 2003:
1,000 5.250%, 11/01/19 - RAAI Insured 11/13 at 100.00 A+ 1,048,440
1,000 5.250%, 2/01/22 - CIFG Insured 8/13 at 100.00 A+ 1,039,410
1,350 Coachella Valley Unified School District, Riverside County, 8/15 at 100.00 A- 1,341,063
California, General Obligation Bonds, Series 2005A,
5.000%, 8/01/30 - FGIC Insured
3,230 Fullerton Joint Union High School District, Orange County, 8/15 at 100.00 Aa3 3,305,744
California, General Obligation Bonds, Series 2005B,
5.000%, 8/01/27 - FGIC Insured
2,150 Los Rios Community College District, Sacramento, 8/14 at 102.00 AAA 2,257,436
El Dorado and Yolo Counties, California, General Obligation
Bonds, Series 2008, 5.000%, 8/01/24 - FSA Insured (UB)
4,100 Monrovia Unified School District, Los Angeles County, No Opt. Call A+ 1,479,485
California, General Obligation Bonds, Series 2001B,
0.000%, 8/01/27 - FGIC Insured
2,500 Oakland Unified School District, Alameda County, California, 8/12 at 100.00 BBB+ 2,537,275
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 AA 1,119,280
General Obligation Refunding Bonds, Series 1997A,
6.150%, 8/01/15 - MBIA Insured
25 Riverside Community College District, California, General 8/14 at 100.00 AA 26,327
Obligation Bonds, Series 2004A, 5.250%, 8/01/24 -
MBIA Insured
210 Roseville Joint Union High School District, Placer County, 8/15 at 100.00 AA- 213,553
California, General Obligation Bonds, Series 2006B,
5.000%, 8/01/27 - FGIC Insured
5,000 San Diego Unified School District, California, General Obligation 7/10 at 100.00 AA 5,246,300
Bonds, Election of 1998, Series 2000B, 5.125%, 7/01/21 -
MBIA Insured
4,970 San Rafael City High School District, Marin County, California, No Opt. Call AA 1,836,862
General Obligation Bonds, Series 2004B, 0.000%, 8/01/27 -
FGIC Insured
4,175 Southwestern Community College District, San Diego County, No Opt. Call AA- 1,737,009
California, General Obligation Bonds, Series 2004,
0.000%, 8/01/25 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
34,835 Total Tax Obligation/General 24,947,373
------------------------------------------------------------------------------------------------------------------------------------
34
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 27.8% (17.9% OF TOTAL INVESTMENTS)
$ 2,000 California State Public Works Board, Lease Revenue Bonds, 6/14 at 100.00 A $ 2,138,100
Department of Mental Health, Coalinga State Hospital,
Series 2004A, 5.500%, 6/01/19
1,420 California, Economic Recovery Revenue Bonds, Series 2004A, 7/14 at 100.00 AA+ 1,554,289
5.000%, 7/01/15
260 Capistrano Unified School District, Orange County, California, 9/15 at 100.00 N/R 252,746
Special Tax Bonds, Community Facilities District, Series 2005,
5.000%, 9/01/24 - FGIC Insured
770 Chino Redevelopment Agency, California, Merged Chino 9/16 at 101.00 AA 738,830
Redevelopment Project Area Tax Allocation Bonds, Series 2006,
5.000%, 9/01/38 - AMBAC Insured
1,035 Hawthorne Community Redevelopment Agency, California, 9/16 at 100.00 A- 1,025,996
Project Area 2 Tax Allocation Bonds, Series 2006,
5.250%, 9/01/36 - XLCA Insured
Irvine, California, Unified School District, Community Facilities
District Special Tax Bonds, Series 2006A:
125 5.000%, 9/01/26 9/16 at 100.00 N/R 113,204
290 5.125%, 9/01/36 9/16 at 100.00 N/R 255,249
470 Los Angeles Community Redevelopment Agency, California, 9/15 at 100.00 Aa3 456,685
Lease Revenue Bonds, Manchester Social Services Project,
Series 2005, 5.000%, 9/01/37 - AMBAC Insured
Modesto Schools Infrastructure Financing Agency, Stanislaus
County, California, Special Tax Revenue Bonds, Series 2004:
1,375 5.250%, 9/01/25 - AMBAC Insured 9/14 at 100.00 AA 1,396,203
1,500 5.250%, 9/01/26 - AMBAC Insured 9/14 at 100.00 AA 1,518,465
10,900 Ontario Redevelopment Financing Authority, San Bernardino No Opt. Call AA 13,784,792
County, California, Revenue Refunding Bonds, Redevelopment
Project 1, Series 1995, 7.400%, 8/01/25 - MBIA Insured
1,000 Ontario, California, Special Tax Bonds, Community Facilities 9/08 at 100.00 N/R 1,004,370
District 5, Freeway Interchange Project, Series 1997,
6.375%, 9/01/17
1,065 Panama-Buena Vista Union School District, California, 9/16 at 100.00 AA 1,098,292
Certificates of Participation, School Construction Project,
Series 2006, 5.000%, 9/01/22 - MBIA Insured
225 Rialto Redevelopment Agency, California, Tax Allocation Bonds, 9/15 at 100.00 A- 215,366
Merged Project Area, Series 2005A, 5.000%, 9/01/35 -
XLCA Insured
280 Roseville, California, Certificates of Participation, Public 8/13 at 100.00 AA 281,322
Facilities, Series 2003A, 5.000%, 8/01/25 - AMBAC Insured
2,500 Sacramento City Financing Authority, California, Lease Revenue No Opt. Call AA 2,680,075
Refunding Bonds, Series 1993A, 5.400%, 11/01/20 -
AMBAC Insured
2,255 San Bernardino County, California, Certificates of Participation, 2/09 at 100.00 AAA 2,258,856
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 AA+ 1,241,400
Refunding Bonds, Convention Center Project, Series 2001F,
5.000%, 9/01/20 - MBIA Insured
485 San Mateo Union High School District, San Mateo County, 12/17 at 100.00 AA 474,126
California, Certificates of Participation, Phase 1, Series 2007A,
5.000%, 12/15/30 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
29,155 Total Tax Obligation/Limited 32,488,366
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 24.3% (15.7% OF TOTAL INVESTMENTS)
995 Bay Area Toll Authority, California, Revenue Bonds, San Francisco 4/18 at 100.00 AA 1,050,859
Bay Area Toll Bridge, Series 2008, Trust 2921,
13.428%, 4/01/39 (IF)
4,000 Foothill/Eastern Transportation Corridor Agency, California, 1/14 at 101.00 BBB- 3,710,960
Toll Road Revenue Refunding Bonds, Series 1999,
0.000%, 1/15/29
8,500 Long Beach, California, Harbor Revenue Bonds, Series 2000A, 5/10 at 101.00 AA 9,009,404
5.750%, 5/15/14 (Alternative Minimum Tax)
5,250 Port of Oakland, California, Revenue Bonds, Series 2000K, 5/10 at 100.00 A+ 5,255,302
5.750%, 11/01/29 - FGIC Insured (Alternative Minimum Tax)
35
NCO
Nuveen California Municipal Market Opportunity Fund, Inc. (continued)
Portfolio of INVESTMENTS August 31, 2008
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION (continued)
San Francisco Airports Commission, California, Revenue Bonds,
San Francisco International Airport, Second Series 2000, Issue 25:
$ 2,515 5.500%, 5/01/24 - FSA Insured (Alternative Minimum Tax) 5/10 at 101.00 AAA $ 2,540,578
3,100 5.750%, 5/01/30 - FSA Insured (Alternative Minimum Tax) 5/10 at 101.00 AAA 3,144,702
1,250 San Francisco Airports Commission, California, Revenue 5/10 at 101.00 A1 1,272,300
Bonds, San Francisco International Airport, Second Series 2000,
Issue 26B, 5.000%, 5/01/21 - FGIC Insured
2,465 San Francisco Airports Commission, California, Special Facilities 1/09 at 101.00 AAA 2,488,837
Lease Revenue Bonds, San Francisco International Airport,
SFO Fuel Company LLC, Series 2000A, 6.125%, 1/01/27 - FSA
Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
28,075 Total Transportation 28,472,942
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 24.2% (15.6% OF TOTAL INVESTMENTS) (4)
710 California County Tobacco Securitization Agency, Tobacco 6/10 at 100.00 N/R (4) 728,978
Settlement Asset-Backed Bonds, Sonoma County Tobacco
Funding Corporation, Series 2002B, 5.125%, 6/01/20
(Pre-refunded 6/01/10)
3,000 California Department of Water Resources, Power Supply 5/12 at 101.00 Aaa 3,311,430
Revenue Bonds, Series 2002A, 5.125%, 5/01/18
(Pre-refunded 5/01/12)
25 California Department of Water Resources, Water System 12/11 at 100.00 Aa2 (4) 27,510
Revenue Bonds, Central Valley Project, Series 2001W,
5.500%, 12/01/15 (Pre-refunded 12/01/11)
10 California Department of Water Resources, Water System No Opt. Call Aa2 (4) 11,576
Revenue Bonds, Central Valley Project, Series 2002X,
5.500%, 12/01/17 - FGIC Insured (ETM)
California, General Obligation Bonds, Series 2004:
1,000 5.125%, 2/01/27 (Pre-refunded 2/01/14) 2/14 at 100.00 AAA 1,114,380
2,100 5.250%, 4/01/34 (Pre-refunded 4/01/14) 4/14 at 100.00 AAA 2,358,636
1,865 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 2,034,827
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.250%, 6/01/33 (Pre-refunded 6/01/13)
5,000 Los Angeles Unified School District, California, General 7/10 at 100.00 AA- (4) 5,309,099
Obligation Bonds, Series 2000D, 5.375%, 7/01/25
(Pre-refunded 7/01/10) - FGIC Insured
2,000 Monterey County, California, Certificates of Participation, 8/11 at 100.00 A2 (4) 2,157,140
Master Plan Financing, Series 2001, 5.000%, 8/01/21
(Pre-refunded 8/01/11) - MBIA Insured
875 Orange County Water District, California, Revenue Certificates 8/13 at 100.00 AA+ (4) 910,219
of Participation, Series 2003B, 5.000%, 8/15/34 -
MBIA Insured (ETM)
4,000 Pomona, California, GNMA/FHLMC Collateralized Single Family No Opt. Call AAA 5,142,640
Mortgage Revenue Refunding Bonds, Series 1990B,
7.500%, 8/01/23 (ETM)
1,875 Riverside Community College District, California, General 8/14 at 100.00 AA (4) 2,115,094
Obligation Bonds, Series 2004A, 5.250%, 8/01/24
(Pre-refunded 8/01/14) - MBIA Insured
1,415 Union City Community Redevelopment Agency, California, 10/09 at 101.00 AA (4) 1,489,571
Tax Allocation Revenue Bonds, Redevelopment Project,
Series 1999, 5.750%, 10/01/32 (Pre-refunded 10/01/09) -
AMBAC Insured
1,530 University of California, Certificates of Participation, 1/10 at 101.00 Aa1 (4) 1,610,753
San Diego and Sacramento Campus Projects, Series 2002A,
5.250%, 1/01/20 (Pre-refunded 1/01/10)
------------------------------------------------------------------------------------------------------------------------------------
25,405 Total U.S. Guaranteed 28,321,853
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 4.9% (3.1% OF TOTAL INVESTMENTS)
1,500 California Pollution Control Financing Authority, Revenue 9/09 at 101.00 AA 1,440,225
Refunding Bonds, Southern California Edison Company,
Series 1999A, 5.450%, 9/01/29 - MBIA Insured
2,815 California Statewide Community Development Authority, 12/08 at 100.00 N/R 2,563,677
Certificates of Participation Refunding, Rio Bravo Fresno
Project, Series 1999A, 6.500%, 12/01/18 (5)
1,365 Long Beach Bond Finance Authority, California, Natural Gas No Opt. Call A 1,273,122
Purchase Revenue Bonds, Series 2007A, 5.500%, 11/15/37
455 Merced Irrigation District, California, Electric System Revenue 9/15 at 100.00 BBB- 416,525
Bonds, Series 2005, 5.125%, 9/01/31 - XLCA Insured
------------------------------------------------------------------------------------------------------------------------------------
6,135 Total Utilities 5,693,549
------------------------------------------------------------------------------------------------------------------------------------
36
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 24.3% (15.6% OF TOTAL INVESTMENTS)
$ 3,305 California Department of Water Resources, Water System 12/11 at 100.00 AAA $ 3,587,313
Revenue Bonds, Central Valley Project, Series 2001W,
5.500%, 12/01/15
1,020 California Department of Water Resources, Water System No Opt. Call AAA 1,167,370
Revenue Bonds, Central Valley Project, Series 2002X,
5.500%, 12/01/17 - FGIC Insured
2,500 El Centro Financing Authority, California, Water Revenue 10/16 at 100.00 AAA 2,441,625
Bonds, Series 2006A, 4.750%, 10/01/31 - FSA Insured
750 Fortuna Public Finance Authority, California, Water Revenue 10/16 at 100.00 AAA 751,448
Bonds, Series 2006, 5.000%, 10/01/36 - FSA Insured
315 Healdsburg Public Financing Authority, California, Wastewater 4/16 at 100.00 AA 308,520
Revenue Bonds, Series 2006, 5.000%, 4/01/36 - MBIA Insured
4,125 Orange County Water District, California, Revenue Certificates 8/13 at 100.00 AA+ 4,113,615
of Participation, Series 2003B, 5.000%, 8/15/34 - MBIA Insured
3,500 Placerville Public Financing Authority, California, Wastewater 9/16 at 100.00 BBB- 3,092,215
System Refinancing and Improvement Project Revenue Bonds,
Series 2006, 5.000%, 9/01/34 - XLCA Insured
500 Sacramento County Sanitation District Financing Authority, 6/16 at 100.00 AA 503,155
California, Revenue Bonds, Series 2006, 5.000%, 12/01/31 -
FGIC Insured
2,000 San Francisco City and County Public Utilities Commission, 4/13 at 100.00 AA 2,102,600
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 AA 10,370,099
Revenue Certificates of Participation, Series 1997A,
5.550%, 8/01/27 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
28,015 Total Water and Sewer 28,437,960
------------------------------------------------------------------------------------------------------------------------------------
$ 190,369 Total Investments (cost $179,643,656) - 155.5% 181,844,971
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (4.4)% (5,146,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 7.0% 8,265,525
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (58.1)% (6) (68,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $116,964,496
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
(2) Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates (month
and year) and prices of the earliest optional call or
redemption. There may be other call provisions at varying
prices at later dates. Certain mortgage-backed securities
may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered
public accounting firm): Using the higher of Standard &
Poor's Group ("Standard & Poor's") or Moody's Investor
Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
The Portfolio of Investments may reflect the ratings on
certain bonds insured by ACA, AMBAC, CIFG, FGIC, MBIA, RAAI
and XLCA as of August 31, 2008. Please see the Portfolio
Manager's Commentary for an expanded discussion of the
affect on the Fund of changes to the ratings of certain
bonds in the portfolio resulting from changes to the ratings
of the underlying insurers both during the period and after
period end.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which ensure
the timely payment of principal and interest. Such
investments are normally considered to be equivalent to AAA
rated securities.
(5) This debt has been restructured to accommodate capital
maintenance at the facility. Major highlights of the debt
restructuring include the following: (1) the principal
balance outstanding on and after December 1, 2007, shall
accrue interest at a rate of 6.500% per annum commencing
December 1, 2007; (2) the interest shall accrue but not be
payable on June 1, 2008 or December 1, 2008, but shall
instead be deferred and paid by the end of calendar year
2011; (3) no principal component shall be pre-payable from
the Minimum Sinking Fund Account during calendar years 2008
and 2009 but such pre-payments shall recommence beginning in
calendar year 2010 according to a revised schedule.
Management believes that the restructuring is in the best
interest of Fund shareholders and that it is
more-likely-than-not that the borrower will fulfill its
obligation. Consequently, the Fund continues to accrue
interest on this obligation.
(6) Preferred Shares, at Liquidation Value as a percentage of
Total Investments is 37.4%.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected
as a financing transaction pursuant to the provisions of
SFAS No. 140.
See accompanying notes to financial statements.
37
NQC
Nuveen California Investment Quality Municipal Fund, Inc.
Portfolio of INVESTMENTS
August 31, 2008
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 5.9% (3.8% OF TOTAL INVESTMENTS)
California County Tobacco Securitization Agency, Tobacco Settlement
Asset-Backed Bonds, Sonoma County Tobacco Securitization
Corporation, Series 2005:
$ 675 4.250%, 6/01/21 6/15 at 100.00 BBB $ 615,175
3,500 5.250%, 6/01/45 6/15 at 100.00 BBB 2,670,535
2,000 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 1,674,280
Enhanced Tobacco Settlement Asset-Backed Bonds,
Series 2007A-1, 5.750%, 6/01/47
6,740 Golden State Tobacco Securitization Corporation, California, 6/22 at 100.00 BBB 3,786,734
Enhanced Tobacco Settlement Asset-Backed Bonds,
Series 2007A-2, 0.000%, 6/01/37
3,500 Tobacco Securitization Authority of Northern California, 6/15 at 100.00 BBB 2,806,615
Tobacco Settlement Asset-Backed Bonds, Series 2005A-1,
5.375%, 6/01/38
------------------------------------------------------------------------------------------------------------------------------------
16,415 Total Consumer Staples 11,553,339
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 14.3% (9.1% OF TOTAL INVESTMENTS)
3,000 California Educational Facilities Authority, Revenue Bonds, 12/16 at 100.00 Baa3 2,538,270
Dominican University, Series 2006, 5.000%, 12/01/36
2,000 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 Aa3 2,035,740
Occidental College, Series 2005A, 5.000%, 10/01/27 -
MBIA Insured
170 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 A3 163,885
University of Redlands, Series 2005A, 5.000%, 10/01/35
930 California Educational Facilities Authority, Revenue Bonds, 11/10 at 100.00 A2 969,981
University of the Pacific, Series 2000, 5.750%, 11/01/30 -
MBIA Insured
California Educational Facilities Authority, Revenue Bonds,
University of the Pacific, Series 2006:
120 5.000%, 11/01/21 11/15 at 100.00 A2 122,089
160 5.000%, 11/01/25 11/15 at 100.00 A2 161,139
6,000 California State Public Works Board, Lease Revenue Bonds, 10/08 at 101.00 A1 6,041,520
California State University Projects, Series 1997C,
5.400%, 10/01/22
1,399 California State Public Works Board, Lease Revenue Bonds, 3/18 at 100.00 AA- 1,321,272
University of California Regents, Trust 1065,
13.699%, 3/01/33 (IF)
2,500 Long Beach Bond Financing Authority, California, Lease 11/11 at 101.00 AA 2,507,225
Revenue Refunding Bonds, Long Beach Aquarium of the
South Pacific, Series 2001, 5.250%, 11/01/30 - AMBAC Insured
University of California, Revenue Bonds, Multi-Purpose
Projects, Series 2008:
4,270 5.125%, 5/15/16 - AMBAC Insured (UB) 5/13 at 100.00 AA 4,587,346
3,000 5.125%, 5/15/17 - AMBAC Insured (UB) 5/13 at 100.00 AA 3,236,370
1,060 5.000%, 5/15/24 -AMBAC Insured (UB) 5/13 at 100.00 AA 1,084,009
3,000 5.000%, 5/15/33 - AMBAC Insured (UB) 5/13 at 100.00 AA 2,992,620
------------------------------------------------------------------------------------------------------------------------------------
27,609 Total Education and Civic Organizations 27,761,466
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 11.7% (7.5% OF TOTAL INVESTMENTS)
3,000 California Health Facilities Financing Authority, Revenue Bonds, 7/14 at 100.00 A 3,000,510
Catholic Healthcare West, Series 2004G, 5.250%, 7/01/23
California Health Facilities Financing Authority, Revenue Bonds,
Kaiser Permanante System, Series 2006:
390 5.000%, 4/01/37 4/16 at 100.00 A+ 369,560
2,355 5.250%, 3/01/45 3/16 at 100.00 A+ 2,291,603
38
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 7,765 California Health Facilities Financing Authority, Revenue Bonds, 11/16 at 100.00 AA- $ 7,568,391
Sutter Health, Series 2007A, 5.250%, 11/15/46 (UB)
1,750 California Municipal Financing Authority, Certificates of 2/17 at 100.00 Baa2 1,513,558
Participation, Community Hospitals of Central California,
Series 2007, 5.250%, 2/01/46
5,515 California Statewide Community Development Authority, Revenue 3/16 at 100.00 A+ 5,190,773
Bonds, Kaiser Permanante System, Series 2006, 5.000%, 3/01/41
1,840 California Statewide Community Development Authority, Revenue 8/16 at 100.00 A+ 1,836,026
Bonds, Kaiser Permanente System, Series 2001C, 5.250%, 8/01/31
948 California Statewide Communities Development Authority, Revenue 7/18 at 100.00 AAA 978,824
Bonds, Saint Joseph Health System, Trust 2554,
14.166%, 7/01/47 - FSA Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
23,563 Total Health Care 22,749,245
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 1.4% (0.9% OF TOTAL INVESTMENTS)
455 California Housing Finance Agency, Home Mortgage Revenue 2/16 at 100.00 Aa2 462,858
Bonds, Series 2006H, 5.750%, 8/01/30 - FGIC Insured
(Alternative Minimum Tax)
2,310 California Housing Finance Agency, Home Mortgage Revenue 2/16 at 100.00 Aa2 2,351,257
Bonds, Series 2006K, 5.500%, 2/01/42 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,765 Total Housing/Single Family 2,814,115
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.6% (0.3% OF TOTAL INVESTMENTS)
1,250 California Pollution Control Financing Authority, Solid Waste 1/16 at 102.00 BBB 1,071,813
Disposal Revenue Bonds, Waste Management Inc.,
Series 2002A, 5.000%, 1/01/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 3.5% (2.3% OF TOTAL INVESTMENTS)
4,750 California Statewide Communities Development Authority, 12/17 at 100.00 Baa1 4,447,853
Revenue Bonds, Inland Regional Center Project, Series 2007,
5.375%, 12/01/37
2,400 California Statewide Community Development Authority, 4/09 at 101.00 BBB 2,412,816
Certificates of Participation, Internext Group, Series 1999,
5.375%, 4/01/17
------------------------------------------------------------------------------------------------------------------------------------
7,150 Total Long-Term Care 6,860,669
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 12.1% (7.8% OF TOTAL INVESTMENTS)
5 California State, General Obligation Bonds, Series 2004, 4/14 at 100.00 A+ 5,021
5.250%, 4/01/34
2,000 California, General Obligation Bonds, Series 2003, 5.250%, 2/01/20 8/13 at 100.00 A+ 2,081,620
1,000 California, General Obligation Bonds, Series 2004, 5.000%, 2/01/21 2/14 at 100.00 A+ 1,025,720
2,250 Fontana Unified School District, San Bernardino County, 5/09 at 102.00 A+ 2,344,208
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 10,518,232
Series 2001A, 5.000%, 9/01/21
3,250 Puerto Rico, General Obligation and Public Improvement Bonds, No Opt. Call AA 3,371,550
Series 2001A, 5.500%, 7/01/20 - MBIA Insured
20 Riverside Community College District, California, General 8/14 at 100.00 AA 21,322
Obligation Bonds, Series 2004A, 5.250%, 8/01/21 - MBIA Insured
345 Roseville Joint Union High School District, Placer County, 8/15 at 100.00 AA- 350,837
California, General Obligation Bonds, Series 2006B,
5.000%, 8/01/27 - FGIC Insured
3,500 San Diego Unified School District, San Diego County, 7/13 at 101.00 AAA 3,857,420
California, General Obligation Bonds, Series 2003E,
5.250%, 7/01/24 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
22,430 Total Tax Obligation/General 23,575,930
------------------------------------------------------------------------------------------------------------------------------------
39
NQC
Nuveen California Investment Quality Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS August 31, 2008
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 41.5% (26.6% OF TOTAL INVESTMENTS)
$ 3,000 California State Public Works Board, Lease Revenue Bonds, 6/14 at 100.00 A $ 3,181,620
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 AA 3,039,870
Department of Mental Health, Hospital Addition, Series 2001A,
5.000%, 12/01/21 - AMBAC Insured
2,350 California, Economic Recovery Revenue Bonds, Series 2004A, 7/14 at 100.00 AA+ 2,572,240
5.000%, 7/01/15
425 Capistrano Unified School District, Orange County, California, 9/15 at 100.00 N/R 413,143
Special Tax Bonds, Community Facilities District, Series 2005,
5.000%, 9/01/24 - FGIC Insured
1,595 Fontana Public Financing Authority, California, Tax Allocation 9/11 at 101.00 AA 1,623,407
Revenue Bonds, North Fontana Redevelopment Project,
Series 2003A, 5.375%, 9/01/25 - AMBAC Insured
840 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 AA 590,890
Enhanced Asset Backed Settlement Revenue Bonds,
Series 2005A, Trust Series 1500, 10.450%, 6/01/45 -
AMBAC Insured (IF)
Golden State Tobacco Securitization Corporation, California,
Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A,
Trust 2215-1:
1,175 13.277%, 6/01/38 - FGIC Insured (IF) 6/15 at 100.00 A 768,450
825 13.277%, 6/01/45 - FGIC Insured (IF) 6/15 at 100.00 A 498,779
7,935 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 AA 7,150,467
Tobacco Settlement Asset-Backed Revenue Bonds,
Series 2005A, 5.000%, 6/01/45 - AMBAC Insured
1,770 Hawthorne Community Redevelopment Agency, California, 9/16 at 100.00 A- 1,741,114
Project Area 2 Tax Allocation Bonds, Series 2006,
5.000%, 9/01/26 - XLCA Insured
3,840 Hesperia Community Redevelopment Agency, California, 9/15 at 100.00 A- 3,675,571
Tax Allocation Bonds, Series 2005A, 5.000%, 9/01/35 -
XLCA Insured
Irvine, California, Unified School District, Community Facilities
District Special Tax Bonds, Series 2006A:
205 5.000%, 9/01/26 9/16 at 100.00 N/R 185,654
470 5.125%, 9/01/36 9/16 at 100.00 N/R 413,680
770 Los Angeles Community Redevelopment Agency, California, 9/15 at 100.00 Aa3 748,186
Lease Revenue Bonds, Manchester Social Services Project,
Series 2005, 5.000%, 9/01/37 - AMBAC Insured
10,000 Los Angeles County Public Works Financing Authority, 9/16 at 100.00 N/R 9,265,799
California, Lease Revenue Bonds, Series 2006B,
5.000%, 9/01/31 - FGIC Insured
4,130 Manteca Unified School District, San Joaquin County, California, 9/11 at 101.00 AA 4,244,525
Special Tax Bonds, Community Facilities District 89-2,
Series 2001C, 5.000%, 9/01/23 - MBIA Insured
3,890 Ontario Redevelopment Financing Authority, California, 8/11 at 101.00 AA 3,981,571
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 AA 4,552,776
County, California, Revenue Refunding Bonds, Redevelopment
Project 1, Series 1995, 7.400%, 8/01/25 - MBIA Insured
1,685 Ontario, California, Special Tax Bonds, Community Facilities 9/08 at 100.00 N/R 1,692,363
District 5, Freeway Interchange Project, Series 1997,
6.375%, 9/01/17
1,500 Orange County, California, Special Tax Bonds, Community 8/12 at 101.00 N/R 1,467,915
Facilities District 03-1 of Ladera Ranch, Series 2004A,
5.625%, 8/15/34
1,000 Paramount Redevelopment Agency, California, Tax Allocation 8/13 at 100.00 AA 1,018,290
Bonds, Redevelopment Project Area 1, Series 2003,
5.000%, 8/01/23 - MBIA Insured
370 Rialto Redevelopment Agency, California, Tax Allocation Bonds, 9/15 at 100.00 A- 354,157
Merged Project Area, Series 2005A, 5.000%, 9/01/35 -
XLCA Insured
2,000 Rohnert Park Community Development Commission, California, 8/17 at 100.00 A- 1,905,960
Redevelopment Project Tax Allocation Bonds, Series 2007R,
5.000%, 8/01/37 - FGIC Insured
460 Roseville, California, Certificates of Participation, Public 8/13 at 100.00 AA 462,171
Facilities, Series 2003A, 5.000%, 8/01/25 - AMBAC Insured
4,000 Sacramento City Financing Authority, California, Lease Revenue No Opt. Call AA 4,288,120
Refunding Bonds, Series 1993A, 5.400%, 11/01/20 -
AMBAC Insured
40
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 2,000 San Jose Financing Authority, California, Lease Revenue 6/12 at 100.00 AA+ $ 2,107,300
Refunding Bonds, Civic Center Project, Series 2002B,
5.250%, 6/01/19 - AMBAC Insured
3,535 San Jose Financing Authority, California, Lease Revenue 9/11 at 100.00 AA+ 3,656,958
Refunding Bonds, Convention Center Project, Series 2001F,
5.000%, 9/01/20 - MBIA Insured
6,000 San Ramon Public Financing Authority, California, Tax Allocation 2/16 at 100.00 AA 5,758,980
Revenue Bonds, Series 2006A, 5.000%, 2/01/38 -
AMBAC Insured (UB)
2,840 Santa Clara Redevelopment Agency, California, Tax Allocation 6/13 at 100.00 AA 2,899,981
Bonds, Bayshore North Project, Series 2003, 5.000%, 6/01/23 -
MBIA Insured
5,250 Santa Cruz County Redevelopment Agency, California, Subordinate 9/10 at 102.00 AA 5,338,988
Lien Tax Allocation Bonds, Live Oak and Soquel Community
Improvement Projects, Series 2000, 5.250%, 9/01/25 -
AMBAC Insured
1,265 Washington Unified School District, Yolo County, California, 8/17 at 100.00 AA 1,239,713
Certificates of Participation, Series 2007, 5.125%, 8/01/37 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
81,725 Total Tax Obligation/Limited 80,838,638
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 29.0% (18.6% OF TOTAL INVESTMENTS)
13,000 Alameda Corridor Transportation Authority, California, 10/09 at 101.00 AA 13,032,629
Senior Lien Revenue Bonds, Series 1999A, 5.000%, 10/01/29 -
MBIA Insured
2,080 Bay Area Toll Authority, California, Revenue Bonds, San Francisco 4/16 at 100.00 AA 2,107,435
Bay Area Toll Bridge, Series 2006, 5.000%, 4/01/31 (UB)
975 Bay Area Toll Authority, California, Revenue Bonds, San Francisco 4/18 at 100.00 AA 1,029,737
Bay Area Toll Bridge, Series 2008, Trust 2921,
13.428%, 4/01/39 (IF)
6,500 Foothill/Eastern Transportation Corridor Agency, California, 1/14 at 101.00 BBB- 6,030,310
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 10,092,474
5.500%, 5/15/25 (Alternative Minimum Tax)
9,000 Port of Oakland, California, Revenue Bonds, Series 2000K, 5/10 at 100.00 A+ 9,009,090
5.750%, 11/01/29 - FGIC Insured (Alternative Minimum Tax)
15,000 San Francisco Airports Commission, California, Revenue 5/10 at 101.00 AAA 15,216,296
Bonds, San Francisco International Airport, Second Series 2000,
Issue 24A, 5.750%, 5/01/30 - FSA Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
56,535 Total Transportation 56,517,971
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 22.9% (14.7% OF TOTAL INVESTMENTS) (4)
6,000 California Department of Water Resources, Power Supply 5/12 at 101.00 Aaa 6,622,860
Revenue Bonds, Series 2002A, 5.125%, 5/01/18
(Pre-refunded 5/01/12)
30 California Department of Water Resources, Water System 12/11 at 100.00 Aa2 (4) 33,011
Revenue Bonds, Central Valley Project, Series 2001W,
5.500%, 12/01/16 (Pre-refunded 12/01/11)
2,070 California Educational Facilities Authority, Revenue Bonds, 11/10 at 100.00 A2 (4) 2,232,619
University of the Pacific, Series 2000, 5.750%, 11/01/30
(Pre-refunded 11/01/10) - MBIA Insured
2,110 California Health Facilities Financing Authority, Revenue 10/08 at 101.00 AAA 2,136,565
Bonds, Kaiser Permanente System, Series 1998B,
5.250%, 10/01/12 (ETM)
3,145 California, General Obligation Bonds, Series 2004, 4/14 at 100.00 AAA 3,532,338
5.250%, 4/01/34 (Pre-refunded 4/01/14)
5,300 California, Various Purpose General Obligation Bonds, 3/10 at 101.00 AAA 5,636,232
Series 2000, 5.750%, 3/01/27 (Pre-refunded 3/01/10) -
MBIA Insured
2,000 Daly City Housing Development Finance Agency, California, 12/13 at 102.00 N/R (4) 2,324,260
Mobile Home Park Revenue Bonds, Franciscan Mobile Home
Park Project, Series 2002A, 5.850%, 12/15/32
(Pre-refunded 12/15/13)
41
NQC
Nuveen California Investment Quality Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS August 31, 2008
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 2,250 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA $ 2,491,425
Enhanced Tobacco Settlement Asset-Backed Bonds,
Series 2003B, 5.625%, 6/01/33 (Pre-refunded 6/01/13)
1,335 Los Angeles Community Redevelopment Agency, California, 1/09 at 100.00 BBB (4) 1,342,169
Tax Allocation Refunding Bonds, Central Business District
Redevelopment Project, Series 1987G, 6.750%, 7/01/10 (ETM)
Los Angeles County Metropolitan Transportation Authority,
California, Proposition C Second Senior Lien Sales Tax Revenue
Bonds, Series 2000A:
8,005 5.250%, 7/01/25 (Pre-refunded 7/01/10) - FGIC Insured 7/10 at 101.00 AA (4) 8,559,186
1,500 5.250%, 7/01/30 (Pre-refunded 7/01/10) - FGIC Insured 7/10 at 101.00 AA (4) 1,603,845
2,285 Moreno Valley Unified School District, Riverside County, 8/14 at 100.00 AAA 2,577,594
California, General Obligation Bonds, Series 2004A,
5.250%, 8/01/24 (Pre-refunded 8/01/14) - FSA Insured
4,000 Puerto Rico Highway and Transportation Authority, Highway 7/12 at 100.00 AAA 4,350,200
Revenue Bonds, Series 2002D, 5.375%, 7/01/36
(Pre-refunded 7/01/12)
1,000 Tobacco Securitization Authority of Southern California, 6/12 at 100.00 AAA 1,105,160
Tobacco Settlement Asset-Backed Bonds, San Diego
County Tobacco Asset Securitization Corporation, Senior
Series 2001A, 5.500%, 6/01/36 (Pre-refunded 6/01/12)
------------------------------------------------------------------------------------------------------------------------------------
41,030 Total U.S. Guaranteed 44,547,464
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 5.9% (3.8% OF TOTAL INVESTMENTS)
2,250 Long Beach Bond Finance Authority, California, Natural No Opt. Call A 2,098,553
Gas Purchase Revenue Bonds, Series 2007A, 5.500%, 11/15/37
5,000 Los Angeles Department of Water and Power, California, 7/11 at 100.00 AAA 5,258,450
Power System Revenue Bonds, Series 2001A-1,
5.250%, 7/01/20 - FSA Insured
740 Merced Irrigation District, California, Electric System Revenue 9/15 at 100.00 BBB- 677,426
Bonds, Series 2005, 5.125%, 9/01/31 - XLCA Insured
3,210 Turlock Irrigation District, California, Electric Revenue Bonds, 1/13 at 100.00 AA 3,416,756
Series 2003A, 5.000%, 1/01/16 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
11,200 Total Utilities 11,451,185
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 7.1% (4.6% OF TOTAL INVESTMENTS)
3,300 California Department of Water Resources, Water System 12/11 at 100.00 AAA 3,581,886
Revenue Bonds, Central Valley Project, Series 2001W,
5.500%, 12/01/16
520 Healdsburg Public Financing Authority, California, Wastewater 4/16 at 100.00 AA 509,304
Revenue Bonds, Series 2006, 5.000%, 4/01/36 -
MBIA Insured
1,500 Los Angeles Department of Water and Power, California, 7/14 at 100.00 AA 1,624,365
Waterworks Revenue Bonds, Series 2004C,
5.250%, 7/01/19 - MBIA Insured
3,015 Oxnard Financing Authority, California, Wastewater Revenue 6/13 at 100.00 A+ 3,184,322
Bonds, Series 2003, 5.000%, 6/01/17 - FGIC Insured
1,310 San Elijo Joint Powers Authority, San Diego County, 3/12 at 101.00 AAA 1,403,154
California, Revenue Refunding Bonds, San Elijo Wastewater
Facilities, Series 2003, 5.000%, 3/01/17 - FSA Insured
42
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 3,430 Westlands Water District, California, Revenue Certificates 9/12 at 101.00 AA $ 3,600,644
of Participation, Series 2002,5.250%, 9/01/22 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
13,075 Total Water and Sewer 13,903,675
------------------------------------------------------------------------------------------------------------------------------------
$ 304,747 Total Investments (cost $302,496,877) - 155.9% 303,645,510
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (9.9)% (19,225,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.7% 5,276,188
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (48.7)% (5) (94,925,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $194,771,698
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
(2) Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates (month
and year) and prices of the earliest optional call or
redemption. There may be other call provisions at varying
prices at later dates. Certain mortgage-backed securities
may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered
public accounting firm): Using the higher of Standard &
Poor's Group ("Standard & Poor's") or Moody's Investor
Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
The Portfolio of Investments may reflect the ratings on
certain bonds insured by ACA, AMBAC, CIFG, FGIC, MBIA, RAAI
and XLCA as of August 31, 2008. Please see the Portfolio
Manager's Commentary for an expanded discussion of the
affect on the Fund of changes to the ratings of certain
bonds in the portfolio resulting from changes to the ratings
of the underlying insurers both during the period and after
period end.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which ensure
the timely payment of principal and interest. Such
investments are normally considered to be equivalent to AAA
rated securities.
(5) Preferred Shares, at Liquidation Value as a percentage of
Total Investments is 31.3%.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected
as a financing transaction pursuant to the provisions of
SFAS No. 140.
See accompanying notes to financial statements.
43
NVC
Nuveen California Select Quality Municipal Fund, Inc.
Portfolio of INVESTMENTS
August 31, 2008
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 7.0% (4.6% OF TOTAL INVESTMENTS)
$ 1,160 California County Tobacco Securitization Agency, Tobacco 6/15 at 100.00 BBB $ 1,057,189
Settlement Asset-Backed Bonds, Sonoma County Tobacco
Securitization Corporation, Series 2005, 4.250%, 6/01/21
4,625 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 Baa3 4,134,473
Settlement Asset-Backed Bonds, Stanislaus County Tobacco
Funding Corporation, Series 2002A, 5.500%, 6/01/33
6,000 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 5,022,840
Enhanced Tobacco Settlement Asset-Backed Bonds,
Series 2007A-1, 5.750%, 6/01/47
22,915 Golden State Tobacco Securitization Corporation, California, 6/22 at 100.00 BBB 12,874,334
Enhanced Tobacco Settlement Asset-Backed Bonds,
Series 2007A-2, 0.000%, 6/01/37
------------------------------------------------------------------------------------------------------------------------------------
34,700 Total Consumer Staples 23,088,836
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 3.9% (2.6% OF TOTAL INVESTMENTS)
290 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 A3 279,569
University of Redlands, Series 2005A, 5.000%, 10/01/35
California Educational Facilities Authority, Revenue Bonds,
University of the Pacific, Series 2006:
200 5.000%, 11/01/21 11/15 at 100.00 A2 203,482
270 5.000%, 11/01/25 11/15 at 100.00 A2 271,922
1,595 California Infrastructure Economic Development Bank, Revenue 10/12 at 100.00 Aa3 1,638,384
Bonds, Claremont University Consortium, Series 2003,
5.125%, 10/01/24
1,740 California Infrastructure Economic Development Bond Bank, 7/15 at 100.00 Aa3 1,793,731
Revenue Bonds, Scripps Research Institute, Series 2005A,
5.000%, 7/01/24
2,394 California State Public Works Board, Lease Revenue Bonds, 3/18 at 100.00 AA- 2,260,989
University of California Regents, Trust 1065,
13.699%, 3/01/33 (IF)
1,385 California State University, Systemwide Revenue Bonds, 11/15 at 100.00 AA 1,405,747
Series 2005C, 5.000%, 11/01/27 - MBIA Insured
5,000 University of California, Revenue Bonds, Multi-Purpose 5/13 at 100.00 AA 4,987,700
Projects, Series 2008, 5.000%, 5/15/33 -
AMBAC Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
12,874 Total Education and Civic Organizations 12,841,524
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 16.8% (11.1% OF TOTAL INVESTMENTS)
1,750 ABAG Finance Authority for Non-Profit Corporations, California, 4/12 at 100.00 A+ 1,796,235
Cal-Mortgage Insured Revenue Bonds, Sansum-Santa
Barbara Medical Foundation Clinic, Series 2002A,
5.500%, 4/01/21
545 California Health Facilities Financing Authority, Insured 1/09 at 100.00 AAA 545,114
Health Facility Revenue Refunding Bonds, Catholic Healthcare
West, Series 1994A, 4.750%, 7/01/19 - MBIA Insured
675 California Health Facilities Financing Authority, Revenue Bonds, 4/16 at 100.00 A+ 639,623
Kaiser Permanante System, Series 2006, 5.000%, 4/01/37
4,565 California Health Facilities Financing Authority, Revenue Bonds, 11/16 at 100.00 AA- 4,102,657
Sutter Health Residual Trust 2061, 14.853%, 11/15/46 (IF)
15,145 California Health Facilities Financing Authority, Revenue Bonds, 11/16 at 100.00 AA- 14,761,529
Sutter Health, Series 2007A, 5.250%, 11/15/46 (UB)
44
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 4,200 California Statewide Communities Development Authority, 3/15 at 100.00 A $ 3,944,976
Revenue Bonds, Adventist Health System West, Series 2005A,
5.000%, 3/01/35
9,435 California Statewide Community Development Authority, Revenue 3/16 at 100.00 A+ 8,880,316
Bonds, Kaiser Permanante System, Series 2006,
5.000%, 3/01/41
3,140 California Statewide Community Development Authority, Revenue 8/16 at 100.00 A+ 3,133,218
Bonds, Kaiser Permanente System, Series 2001C,
5.250%, 8/01/31
1,355 California Statewide Community Development Authority, No Opt. Call AA 1,403,021
Revenue Bonds, Sherman Oaks Health System, Series 1998A,
5.000%, 8/01/22 - AMBAC Insured
1,621 California Statewide Communities Development Authority, 7/18 at 100.00 AAA 1,674,590
Revenue Bonds, Saint Joseph Health System, Trust 2554,
14.166%, 7/01/47 - FSA Insured (IF)
6,000 Madera County, California, Certificates of Participation, 9/08 at 100.00 AA 6,009,960
Valley Children's Hospital Project, Series 1995,
5.750%, 3/15/28 - MBIA Insured
9,655 Rancho Mirage Joint Powers Financing Authority, California, 7/17 at 100.00 A3 8,818,877
Revenue Bonds, Eisenhower Medical Center, Series 2007A,
5.000%, 7/01/38
------------------------------------------------------------------------------------------------------------------------------------
58,086 Total Health Care 55,710,116
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.7% (1.1% OF TOTAL INVESTMENTS)
1,000 Independent Cities Lease Finance Authority, California, 11/14 at 100.00 N/R 955,620
Revenue Bonds, Morgan Hill, Hacienda Valley Mobile Home
Park, Series 2004A, 5.950%, 11/15/39
4,750 Montclair Redevelopment Agency, California, Revenue Bonds, 12/10 at 102.00 N/R 4,790,660
Monterey Manor Mobile Home Estates Project, Series 2000,
6.400%, 12/15/30
------------------------------------------------------------------------------------------------------------------------------------
5,750 Total Housing/Multifamily 5,746,280
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.2% (0.2% OF TOTAL INVESTMENTS)
785 California Housing Finance Agency, Home Mortgage Revenue 2/16 at 100.00 Aa2 798,557
Bonds, Series 2006H, 5.750%, 8/01/30 - FGIC Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.9% (1.3% OF TOTAL INVESTMENTS)
5,000 California Pollution Control Financing Authority, Solid Waste No Opt. Call BBB+ 4,647,100
Disposal Revenue Bonds, Republic Services Inc., Series 2002C,
5.250%, 6/01/23 (Mandatory put 12/01/17)
(Alternative Minimum Tax)
2,000 California Pollution Control Financing Authority, Solid Waste 1/16 at 102.00 BBB 1,714,900
Disposal Revenue Bonds, Waste Management Inc.,
Series 2002A, 5.000%, 1/01/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
7,000 Total Industrials 6,362,000
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.3% (0.8% OF TOTAL INVESTMENTS)
California Statewide Communities Development Authority,
Revenue Bonds, Inland Regional Center Project, Series 2007:
460 5.250%, 12/01/27 12/17 at 100.00 Baa1 436,462
4,000 5.375%, 12/01/37 12/17 at 100.00 Baa1 3,745,560
------------------------------------------------------------------------------------------------------------------------------------
4,460 Total Long-Term Care 4,182,022
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 18.9% (12.4% OF TOTAL INVESTMENTS)
California, General Obligation Bonds, Series 2003:
3,750 5.250%, 11/01/19 - RAAI Insured 11/13 at 100.00 A+ 3,931,650
5,000 5.250%, 2/01/22 8/13 at 100.00 A+ 5,152,600
1,000 5.250%, 2/01/22 - CIFG Insured 8/13 at 100.00 A+ 1,039,410
California, General Obligation Bonds, Series 2004:
3,800 5.000%, 2/01/21 2/14 at 100.00 A+ 3,897,736
1,850 5.200%, 4/01/26 4/14 at 100.00 A+ 1,886,908
4,700 California, Various Purpose General Obligation Bonds, 5/10 at 101.00 A1 4,892,465
Series 2000, 5.625%, 5/01/22 - FGIC Insured
3,850 Coachella Valley Unified School District, Riverside County, 8/15 at 100.00 A- 3,824,513
California, General Obligation Bonds, Series 2005A,
5.000%, 8/01/30 - FGIC Insured
45
NVC
Nuveen California Select Quality Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS August 31, 2008
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
Fontana Unified School District, San Bernardino County, California,
General Obligation Bonds, Series 2004:
$ 1,470 5.250%, 5/01/19 - MBIA Insured 5/14 at 100.00 AA $ 1,585,542
1,040 5.250%, 5/01/20 - MBIA Insured 5/14 at 100.00 AA 1,111,531
4,000 Long Beach Community College District, California, General 5/15 at 100.00 AA- 4,024,520
Obligation Bonds, Series 2005B, 5.000%, 5/01/30 -
FGIC Insured
10,060 Los Angeles, California, General Obligation Bonds, Series 2001A, 9/11 at 100.00 AA 10,547,005
5.000%, 9/01/20
Los Rios Community College District, Sacramento, El Dorado and
Yolo Counties, California, General Obligation Bonds, Series
2008:
2,710 5.000%, 8/01/25 - FSA Insured (UB) 8/14 at 102.00 Aaa 2,836,151
3,875 5.000%, 8/01/26 - FSA Insured (UB) 8/14 at 102.00 Aaa 4,015,856
6,000 North Orange County Community College District, California, No Opt. Call AA 2,217,540
General Obligation Bonds, Series 2003B, 0.000%, 8/01/27 -
FGIC Insured
5,000 Puerto Rico, General Obligation and Public Improvement Bonds, No Opt. Call AA 5,187,000
Series 2001A, 5.500%, 7/01/20 - MBIA Insured
585 Roseville Joint Union High School District, Placer County, 8/15 at 100.00 AA- 594,898
California, General Obligation Bonds, Series 2006B,
5.000%, 8/01/27 - FGIC Insured
3,760 West Contra Costa Unified School District, Contra Costa 8/11 at 101.00 AAA 3,882,162
County, California, General Obligation Bonds, Series 2003B,
5.000%, 8/01/22 - FSA Insured
2,000 West Contra Costa Unified School District, Contra Costa County, 8/11 at 101.00 A- 2,036,960
California, General Obligation Bonds, Series 2003C,
5.000%, 8/01/22 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
64,450 Total Tax Obligation/General 62,664,447
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 25.6% (16.8% OF TOTAL INVESTMENTS)
2,870 Bell Community Redevelopment Agency, California, Tax Allocation 10/13 at 100.00 BBB+ 2,849,508
Bonds, Bell Project Area, Series 2003, 5.500%, 10/01/23 -
RAAI Insured
California State Public Works Board, Lease Revenue Bonds,
Department of Mental Health, Coalinga State Hospital, Series
2004A:
4,000 5.500%, 6/01/21 6/14 at 100.00 A 4,217,120
2,000 5.500%, 6/01/23 6/14 at 100.00 A 2,091,000
730 Capistrano Unified School District, Orange County, California, 9/15 at 100.00 N/R 709,633
Special Tax Bonds, Community Facilities District,
Series 2005, 5.000%, 9/01/24 - FGIC Insured
1,000 Coachella Valley Unified School District, Riverside County, 9/16 at 100.00 Aa3 975,960
California, Certificates of Participation, Series 2007,
5.000%, 9/01/31 - AMBAC Insured
3,000 Coronado Community Development Agency, California, Tax 9/15 at 100.00 AA 2,980,200
Allocation Bonds, Community Development Project, Series 2005,
5.000%, 9/01/30 - AMBAC Insured
1,030 Folsom Cordova Unified School District, Sacramento County, 10/14 at 100.00 AAA 1,056,018
California, General Obligation Bonds, School Facilities
Improvement District 2, Series 2004B, 5.000%, 10/01/25 -
FSA Insured
Golden State Tobacco Securitization Corporation, California,
Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A,
Trust 2215-1:
1,940 13.277%, 6/01/38 - FGIC Insured (IF) 6/15 at 100.00 A 1,268,760
1,355 13.277%, 6/01/45 - FGIC Insured (IF) 6/15 at 100.00 A 819,206
1,785 Hawthorne Community Redevelopment Agency, California, 9/16 at 100.00 A- 1,769,471
Project Area 2 Tax Allocation Bonds, Series 2006,
5.250%, 9/01/36 - XLCA Insured
1,500 Hesperia Unified School District, San Bernardino County, 2/17 at 100.00 AA 1,436,640
California, Certificates of Participation, Capital Improvement,
Series 2007, 5.000%, 2/01/41 - AMBAC Insured
435 Indian Wells Redevelopment Agency, California, Tax Allocation 9/13 at 100.00 AA 447,693
Bonds, Consolidated Whitewater Project Area, Series 2003A,
5.000%, 9/01/20 - AMBAC Insured
Irvine, California, Unified School District, Community Facilities
District Special Tax Bonds, Series 2006A:
350 5.000%, 9/01/26 9/16 at 100.00 N/R 316,971
805 5.125%, 9/01/36 9/16 at 100.00 N/R 708,537
46
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 3,000 La Quinta Redevelopment Agency, California, Tax Allocation 9/11 at 102.00 AA $ 3,072,630
Bonds, Redevelopment Project Area 1, Series 2001,
5.000%, 9/01/21 - AMBAC Insured
3,510 Long Beach Bond Financing Authority, California, Lease 10/08 at 101.00 AA 3,516,107
Revenue and Refunding Bonds, Civic Center Project,
Series 1997A, 5.000%, 10/01/27 - MBIA Insured
4,315 Los Angeles Community Redevelopment Agency, California, 9/15 at 100.00 Aa3 4,192,756
Lease Revenue Bonds, Manchester Social Services Project,
Series 2005, 5.000%, 9/01/37 - AMBAC Insured
5,770 Los Angeles County Metropolitan Transportation Authority, 1/09 at 101.00 Aa3 5,789,387
California, Proposition C Second Senior Lien Sales Tax
Revenue Refunding Bonds, Series 1998A,
5.000%, 7/01/23 - AMBAC Insured
8,175 Los Angeles, California, Municipal Improvement Corporation, 1/17 at 100.00 AA- 7,764,206
Lease Revenue Bonds, Police Headquarters, Series 2006A,
4.750%, 1/01/31 - FGIC Insured
2,580 Oakland Redevelopment Agency, California, Subordinate 3/13 at 100.00 A- 2,758,175
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 10/08 at 101.00 AA 3,627,784
Bonds, Elihu M. Harris State Office Building, Series 1998A,
5.000%, 4/01/23 - AMBAC Insured
2,280 Ontario Redevelopment Financing Authority, California, Lease 8/11 at 101.00 AA 2,406,221
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 982,790
Facilities District 03-1 of Ladera Ranch, Series 2004A,
5.500%, 8/15/24
1,120 Panama-Buena Vista Union School District, California, 9/16 at 100.00 AA 1,149,714
Certificates of Participation, School Construction Project,
Series 2006, 5.000%, 9/01/23 - MBIA Insured
8,750 Pittsburg Redevelopment Agency, California, Tax Allocation No Opt. Call AA 3,910,900
Bonds, Los Medanos Community Development Project,
Series 1999, 0.000%, 8/01/23 - AMBAC Insured
635 Rialto Redevelopment Agency, California, Tax Allocation Bonds, 9/15 at 100.00 A- 607,809
Merged Project Area, Series 2005A, 5.000%, 9/01/35 -
XLCA Insured
110 Riverside Public Financing Authority, California, Revenue Bonds, 2/09 at 100.00 N/R 111,034
Multiple Project Loans, Series 1991A, 8.000%, 2/01/18
820 Roseville, California, Certificates of Participation, Public 8/13 at 100.00 AA 823,870
Facilities, Series 2003A, 5.000%, 8/01/25 - AMBAC Insured
2,200 San Jose Financing Authority, California, Lease Revenue 9/11 at 100.00 AA+ 2,275,900
Refunding Bonds, Convention Center Project, Series 2001F,
5.000%, 9/01/20 - MBIA Insured
1,365 San Mateo Union High School District, San Mateo County, 12/17 at 100.00 AA 1,334,397
California, Certificates of Participation, Phase 1, Series 2007A,
5.000%, 12/15/30 - AMBAC Insured
4,625 Santa Clara Redevelopment Agency, California, Tax Allocation 6/13 at 100.00 AA 4,884,740
Bonds, Bayshore North Project, Series 2003, 5.000%, 6/01/17 -
MBIA Insured
6,870 Vernon Redevelopment Agency, California, Tax Allocation Bonds, 9/15 at 100.00 AA 6,633,122
Industrial Redevelopment Project, Series 2005,
5.000%, 9/01/35 - MBIA Insured
2,175 Washington Unified School District, Yolo County, California, 8/17 at 100.00 AA 2,131,522
Certificates of Participation, Series 2007, 5.125%, 8/01/37 -
AMBAC Insured
5,000 West Hollywood, California, Refunding Certificates of 2/09 at 101.00 AA 5,022,250
Participation, Series 1998, 5.000%, 2/01/25 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
90,705 Total Tax Obligation/Limited 84,642,031
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 17.7% (11.6% OF TOTAL INVESTMENTS)
2,210 Bay Area Toll Authority, California, Revenue Bonds, 4/16 at 100.00 AA 2,239,150
San Francisco Bay Area Toll Bridge, Series 2006,
5.000%, 4/01/31 (UB)
1,810 Bay Area Toll Authority, California, Revenue Bonds, 4/18 at 100.00 AA 1,911,613
San Francisco Bay Area Toll Bridge, Series 2008,
Trust 2921, 13.428%, 4/01/39 (IF)
8,300 Foothill/Eastern Transportation Corridor Agency, California, 1/10 at 100.00 AA 7,511,998
Toll Road Revenue Bonds, Series 1995A, 5.000%, 1/01/35 -
MBIA Insured
47
NVC
Nuveen California Select Quality Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS August 31, 2008
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION (continued)
$ 10,500 Foothill/Eastern Transportation Corridor Agency, California, 1/14 at 101.00 BBB- $ 9,741,270
Toll Road Revenue Refunding Bonds, Series 1999,
0.000%, 1/15/29
8,000 Port of Oakland, California, Revenue Bonds, Series 2000K, 5/10 at 100.00 A+ 8,008,080
5.750%, 11/01/29 - FGIC Insured (Alternative Minimum Tax)
20,000 San Francisco Airports Commission, California, Revenue Bonds, 5/10 at 101.00 AAA 20,288,400
San Francisco International Airport, Second Series 2000,
Issue 25, 5.750%, 5/01/30 - FSA Insured
(Alternative Minimum Tax)
5,000 San Francisco Airports Commission, California, Revenue 5/11 at 100.00 A1 5,186,800
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 AA 3,685,854
Refunding Bonds, San Francisco International Airport,
Second Series 2002, Issue 28A, 5.250%, 5/01/18 -
MBIA Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
59,485 Total Transportation 58,573,165
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 34.9% (22.9% OF TOTAL INVESTMENTS) (4)
9,750 California Department of Water Resources, Power Supply 5/12 at 101.00 Aaa 10,762,148
Revenue Bonds, Series 2002A, 5.125%, 5/01/18
(Pre-refunded 5/01/12)
5,760 California Health Facilities Financing Authority, Revenue 12/09 at 101.00 N/R (4) 6,119,942
Bonds, Cedars-Sinai Medical Center, Series 1999A,
6.125%, 12/01/30 (Pre-refunded 12/01/09)
3,000 California Pollution Control Financing Authority, Solid Waste 11/08 at 100.00 Aaa 3,561,990
Disposal Revenue Bonds, North County Recycling Center,
Series 1991A, 6.750%, 7/01/17 (ETM)
California Statewide Community Development Authority, Certificates
of Participation, Catholic Healthcare West, Series 1999:
4,495 6.500%, 7/01/20 (Pre-refunded 7/01/10) 7/10 at 101.00 A (4) 4,899,460
1,845 6.500%, 7/01/20 (Pre-refunded 7/01/10) 7/10 at 101.00 A (4) 2,006,788
10,000 California, Various Purpose General Obligation Bonds, 3/10 at 101.00 AAA 10,634,400
Series 2000, 5.750%, 3/01/27 (Pre-refunded 3/01/10) -
MBIA Insured
730 Contra Costa County, California, GNMA Mortgage-Backed No Opt. Call AAA 756,908
Securities Program Home Mortgage Revenue Bonds,
Series 1989, 7.700%, 11/01/09 (Alternative
Minimum Tax) (ETM)
5,515 Fresno Unified School District, Fresno County, California, 8/09 at 102.00 A+ (4) 5,675,376
General Obligation Bonds, Series 2001E, 5.000%, 8/01/25 -
FGIC Insured (ETM)
Golden State Tobacco Securitization Corporation, California,
Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2003B:
2,000 5.625%, 6/01/33 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 2,214,600
2,500 5.625%, 6/01/38 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 2,768,250
3,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 3,469,740
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.750%, 6/01/39 (Pre-refunded 6/01/13)
3,000 Los Angeles County Metropolitan Transportation Authority, 7/10 at 101.00 AA (4) 3,207,690
California, Proposition C Second Senior Lien Sales Tax
Revenue Bonds, Series 2000A, 5.250%, 7/01/25
(Pre-refunded 7/01/10) - FGIC Insured
6,030 Los Angeles Unified School District, California, General 7/10 at 100.00 AA- (4) 6,402,775
Obligation Bonds, Series 2000D, 5.375%, 7/01/25
(Pre-refunded 7/01/10) - FGIC Insured
Monterey County, California, Certificates of Participation,
Master Plan Financing, Series 2001:
2,075 5.000%, 8/01/19 (Pre-refunded 8/01/11) - MBIA Insured 8/11 at 100.00 A2 (4) 2,238,033
3,000 5.000%, 8/01/26 (Pre-refunded 8/01/11) - MBIA Insured 8/11 at 100.00 A2 (4) 3,235,710
10,000 Puerto Rico Highway and Transportation Authority, Highway 7/10 at 101.00 BBB+ (4) 10,770,300
Revenue Bonds, Series 2000B, 6.000%, 7/01/31
(Pre-refunded 7/01/10)
4,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 4,151,680
Obligation Bonds, Series 2000A, 5.500%, 10/01/32
2,000 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call AAA 2,367,660
Appropriation Bonds, Series 2002E, 6.000%, 8/01/26 -
AGC Insured (ETM)
48
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 17,670 San Francisco City and County Public Utilities Commission, 11/11 at 100.00 AAA $ 19,144,031
California, Water Revenue Bonds, Series 2001A,
5.000%, 11/01/24 (Pre-refunded 11/01/11) - FSA Insured
6,555 Sweetwater Authority, California, Water Revenue Bonds, 4/10 at 101.00 AAA 6,932,371
Series 2002, 5.000%, 4/01/22 (Pre-refunded 4/01/10) -
FSA Insured
2,000 University of California, Revenue Bonds, Research Facilities, 9/09 at 101.00 Aa1 (4) 2,086,160
Series 2001E, 5.000%, 9/01/22 (Pre-refunded 9/01/09) -
AMBAC Insured
2,000 Vista, California, Mobile Home Park Revenue Bonds, 3/24 at 100.00 N/R (4) 2,066,040
Vista Manor Mobile Home Park Project, Series 1999A,
5.750%, 3/15/29 (Pre-refunded 3/15/24)
------------------------------------------------------------------------------------------------------------------------------------
106,925 Total U.S. Guaranteed 115,472,052
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 15.1% (9.9% OF TOTAL INVESTMENTS)
2,000 Anaheim Public Finance Authority, California, Revenue 10/12 at 100.00 AAA 2,163,880
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 AA 1,886,129
Electric Distribution Revenue Bonds, Series 2004,
5.250%, 10/01/21 - MBIA Insured
10,350 California Pollution Control Financing Authority, Revenue Bonds, No Opt. Call A+ 11,944,004
San Diego Gas and Electric Company, Series 1991A,
6.800%, 6/01/15 (Alternative Minimum Tax)
4,000 Imperial Irrigation District, California, Certificates of 11/13 at 100.00 AAA 4,151,760
Participation, Electric System Revenue Bonds, Series 2003,
5.250%, 11/01/23 - FSA Insured
3,855 Long Beach Bond Finance Authority, California, Natural Gas No Opt. Call A 3,595,520
Purchase Revenue Bonds, Series 2007A, 5.500%, 11/15/37
5,000 Los Angeles Department of Water and Power, California, 7/11 at 100.00 AA 5,254,450
Power System Revenue Bonds, Series 2001A-2,
5.375%, 7/01/20 - MBIA Insured
5,000 Los Angeles Department of Water and Power, California, 7/15 at 100.00 Aaa 5,063,250
Power System Revenue Bonds, Series 2008,
5.000%, 7/01/31 - FSA Insured (UB)
5,225 Los Angeles, California, Sanitation Equipment Charge 2/11 at 100.00 AAA 5,467,022
Revenue Bonds, Series 2001A, 5.250%, 2/01/18 -
FSA Insured
1,025 Los Angeles, California, Sanitation Equipment Charge Revenue 2/14 at 100.00 AA 1,050,369
Bonds, Series 2004A, 5.000%, 2/01/22 - AMBAC Insured
1,260 Merced Irrigation District, California, Electric System Revenue 9/15 at 100.00 BBB- 1,153,454
Bonds, Series 2005, 5.125%, 9/01/31 - XLCA Insured
4,360 Sacramento Municipal Utility District, California, Electric 8/12 at 100.00 AAA 4,577,477
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 AA 3,557,745
Magnolia Power Project, Series 2003-1A, 5.000%, 7/01/20 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
47,345 Total Utilities 49,865,060
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 7.1% (4.7% OF TOTAL INVESTMENTS)
1,185 Burbank, California, Wastewater System Revenue Bonds, 6/14 at 100.00 AA 1,205,050
Series 2004A, 5.000%, 6/01/24 - AMBAC Insured
890 Healdsburg Public Financing Authority, California, Wastewater 4/16 at 100.00 AA 871,693
Revenue Bonds, Series 2006, 5.000%, 4/01/36 - MBIA Insured
1,250 Indio Water Authority, California, Water Revenue Bonds, 4/16 at 100.00 AA 1,251,513
Series 2006, 5.000%, 4/01/31 - AMBAC Insured
4,705 Madera Irrigation District. California, Water Revenue 1/18 at 100.00 A- 4,610,665
Refunding Bonds, Series 2008, 5.500%, 1/01/38
3,750 Metropolitan Water District of Southern California, Water 10/14 at 100.00 AAA 3,822,750
Revenue Bonds, Series 2004B-3, 5.000%, 10/01/29 -
MBIA Insured
2,000 Pico Rivera Water Authority, California, Revenue Bonds, 12/11 at 102.00 N/R 2,000,200
Series 2001A, 6.250%, 12/01/32
49
NVC
Nuveen California Select Quality Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS August 31, 2008
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 1,420 Puerto Rico Aqueduct and Sewerage Authority, Revenue Bonds, 7/18 at 100.00 BBB- $ 1,488,671
Senior Lien Series 2008A, 6.000%, 7/01/38
2,525 Sacramento County Sanitation District Financing Authority, No Opt. Call AA 2,831,889
California, Revenue Refunding Bonds, Series 2001,
5.500%, 12/01/20 - AMBAC Insured
San Francisco City and County Public Utilities Commission,
California, Clean Water Revenue Refunding Bonds, Series 2003A:
2,120 5.250%, 10/01/19 - MBIA Insured 4/13 at 100.00 AA 2,243,214
2,960 5.250%, 10/01/20 - MBIA Insured 4/13 at 100.00 AA 3,111,847
------------------------------------------------------------------------------------------------------------------------------------
22,805 Total Water and Sewer 23,437,492
------------------------------------------------------------------------------------------------------------------------------------
$ 515,370 Total Investments (cost $501,381,333) - 152.1% 503,383,582
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (7.3)% (24,189,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 6.4% 20,995,278
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (51.2)% (5) (169,275,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $330,914,860
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
(2) Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates (month
and year) and prices of the earliest optional call or
redemption. There may be other call provisions at varying
prices at later dates. Certain mortgage-backed securities
may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered
public accounting firm): Using the higher of Standard &
Poor's Group ("Standard & Poor's") or Moody's Investor
Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
The Portfolio of Investments may reflect the ratings on
certain bonds insured by ACA, AMBAC, CIFG, MBIA, RAAI and
XLCA as of August 31, 2008. Please see the Portfolio
Manager's Commentary for an expanded discussion of the
affect on the Fund of changes to the ratings of certain
bonds in the portfolio resulting from changes to the ratings
of the underlying insurers both during the period and after
period end.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which ensure
the timely payment of principal and interest. Such
investments are normally considered to be equivalent to AAA
rated securities.
(5) Preferred Shares, at Liquidation Value as a percentage of
Total Investments is 33.6%. N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected
as a financing transaction pursuant to the provisions of
SFAS No. 140.
See accompanying notes to financial statements.
50
NUC
Nuveen California Quality Income Municipal Fund, Inc.
Portfolio of INVESTMENTS
August 31, 2008
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 5.9% (3.8% OF TOTAL INVESTMENTS)
$ 5,000 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 Baa3 $ 4,649,000
Settlement Asset-Backed Bonds, Alameda County Tobacco
Asset Securitization Corporation, Series 2002, 5.750%, 6/01/29
1,115 California County Tobacco Securitization Agency, Tobacco 6/15 at 100.00 BBB 1,016,178
Settlement Asset-Backed Bonds, Sonoma County Tobacco
Securitization Corporation, Series 2005, 4.250%, 6/01/21
4,620 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 Baa3 4,130,003
Settlement Asset-Backed Bonds, Stanislaus County Tobacco
Funding Corporation, Series 2002A, 5.500%, 6/01/33
8,145 California Statewide Financing Authority, Tobacco Settlement 5/12 at 100.00 Baa3 7,482,812
Asset-Backed Bonds, Pooled Tobacco Securitization Program,
Series 2002A, 5.625%, 5/01/29
3,370 Golden State Tobacco Securitization Corporation, California, 6/22 at 100.00 BBB 1,893,367
Enhanced Tobacco Settlement Asset-Backed Bonds,
Series 2007A-2, 0.000%, 6/01/37
------------------------------------------------------------------------------------------------------------------------------------
22,250 Total Consumer Staples 19,171,360
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 6.1% (3.9% OF TOTAL INVESTMENTS)
280 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 A3 269,928
University of Redlands, Series 2005A, 5.000%, 10/01/35
2,785 California Educational Facilities Authority, Revenue Bonds, 11/10 at 100.00 A2 2,904,727
University of the Pacific, Series 2000, 5.750%, 11/01/30 -
MBIA Insured
California Educational Facilities Authority, Revenue Bonds,
University of the Pacific, Series 2006:
195 5.000%, 11/01/21 11/15 at 100.00 A2 198,395
260 5.000%, 11/01/25 11/15 at 100.00 A2 261,851
2,320 California State Public Works Board, Lease Revenue Bonds, 3/18 at 100.00 AA- 2,191,101
University of California Regents, Trust 1065,
13.699%, 3/01/33 (IF)
4,000 California State Public Works Board, Lease Revenue 9/08 at 100.00 AA 4,009,440
Refunding 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 AA 6,576,192
Series 2002A, 5.000%, 11/01/20 - AMBAC Insured
1,000 San Diego County, California, Certificates of Participation, 9/15 at 102.00 Baa3 882,890
Burnham Institute, Series 2006,5.000%, 9/01/34
2,500 University of California, Revenue Bonds, Multi-Purpose 5/13 at 100.00 AA 2,493,850
Projects, Series 2008, 5.000%, 5/15/33 -
AMBAC Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
19,740 Total Education and Civic Organizations 19,788,374
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 13.8% (8.9% OF TOTAL INVESTMENTS)
1,750 ABAG Finance Authority for Non-Profit Corporations, California, 4/12 at 100.00 A+ 1,796,235
Cal-Mortgage Insured Revenue Bonds, Sansum-Santa Barbara
Medical Foundation Clinic, Series 2002A, 5.500%, 4/01/21
California Health Facilities Financing Authority, Revenue Bonds,
Kaiser Permanante System, Series 2006:
640 5.000%, 4/01/37 4/16 at 100.00 A+ 606,458
3,640 5.250%, 3/01/45 3/16 at 100.00 A+ 3,542,011
14,550 California Health Facilities Financing Authority, Revenue Bonds, 11/16 at 100.00 AA- 14,181,594
Sutter Health, Series 2007A, 5.250%, 11/15/46 (UB)
51
NUC
Nuveen California Quality Income Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS August 31, 2008
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 2,855 California Municipal Financing Authority, Certificates of 2/17 at 100.00 Baa2 $ 2,469,261
Participation, Community Hospitals of Central California,
Series 2007, 5.250%, 2/01/46
1,225 California State Public Works Board, Revenue Bonds, University 11/14 at 100.00 AA 1,262,938
of California - Davis Medical Center, Series 2004II-A,
5.000%, 11/01/23 - MBIA Insured
685 California Statewide Community Development Authority, No Opt. Call A2 736,252
Certificates of Participation, Cedars-Sinai Medical Center,
Series 1992, 6.500%, 8/01/12
1,500 California Statewide Community Development Authority, 7/15 at 100.00 BBB+ 1,382,760
Revenue Bonds, Daughters of Charity Health System,
Series 2005A, 5.250%, 7/01/30
9,030 California Statewide Community Development Authority, 3/16 at 100.00 A+ 8,499,126
Revenue Bonds, Kaiser Permanante System, Series 2006,
5.000%, 3/01/41
3,015 California Statewide Community Development Authority, 8/16 at 100.00 A+ 3,008,488
Revenue Bonds, Kaiser Permanente System, Series 2001C,
5.250%, 8/01/31
5,825 California Statewide Community Development Authority, 8/17 at 100.00 AA 5,637,493
Revenue Bonds, Sutter Health, Series 2007C, Trust 1975,
10.488%, 8/15/38 - AMBAC Insured (IF)
1,571 California Statewide Communities Development Authority, 7/18 at 100.00 AAA 1,622,937
Revenue Bonds, Saint Joseph Health System, Trust 2554,
14.166%, 7/01/47 - FSA Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
46,286 Total Health Care 44,745,553
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 2.9% (1.9% OF TOTAL INVESTMENTS)
1,000 Independent Cities Lease Finance Authority, California, 11/14 at 100.00 N/R 955,620
Revenue Bonds, Morgan Hill, Hacienda Valley Mobile
Home Park, Series 2004A, 5.950%, 11/15/39
2,285 Irvine, California, Mobile Home Park Revenue Bonds, 9/08 at 102.00 N/R 2,316,670
Meadows Mobile Home Park, Series 1998A,
5.700%, 3/01/18
2,250 Oceanside, California, Mobile Home Park Revenue Bonds, 9/08 at 102.00 N/R 2,215,170
Laguna Vista Mobile Estates Acquisition Project, Series 1998,
5.800%, 3/01/28
3,040 Riverside County, California, Mobile Home Park Revenue Bonds, 3/09 at 102.00 N/R 2,885,690
Bravo Mobile Home Park Project, Series 1999A, 5.900%, 3/20/29
1,030 Yolo County Housing Authority, California, Revenue Refunding 11/08 at 100.00 Aa2 1,043,843
Bonds, Russell Park Apartments, Series 1992A,
7.000%, 11/01/14
------------------------------------------------------------------------------------------------------------------------------------
9,605 Total Housing/Multifamily 9,416,993
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 1.3% (0.9% OF TOTAL INVESTMENTS)
750 California Housing Finance Agency, Home Mortgage 2/16 at 100.00 Aa2 762,953
Revenue Bonds, Series 2006H, 5.750%, 8/01/30 -
FGIC Insured (Alternative Minimum Tax)
5,900 California Housing Finance Agency, Home Mortgage Revenue 2/16 at 100.00 Aa2 3,675,700
Bonds, Series 2007M, Lehman Municipal Trust Receipts K43W,
5.305%, 8/01/26 (Alternative Minimum Tax) (IF)
------------------------------------------------------------------------------------------------------------------------------------
6,650 Total Housing/Single Family 4,438,653
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.5% (0.3% OF TOTAL INVESTMENTS)
2,000 California Pollution Control Financing Authority, Solid Waste 1/16 at 102.00 BBB 1,714,900
Disposal Revenue Bonds, Waste Management Inc.,
Series 2002A, 5.000%, 1/01/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.0% (0.7% OF TOTAL INVESTMENTS)
3,500 California Statewide Communities Development Authority, 12/17 at 100.00 Baa1 3,277,365
Revenue Bonds, Inland Regional Center Project,
Series 2007, 5.375%, 12/01/37
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 17.8% (11.5% OF TOTAL INVESTMENTS)
1,900 Azusa Unified School District, Los Angeles County, California, 7/12 at 100.00 AAA 2,029,314
General Obligation Bonds, Series 2002, 5.375%, 7/01/20 -
FSA Insured
35 California State, General Obligation Bonds, Series 2002, 4/12 at 100.00 A+ 35,260
5.250%, 4/01/32
80 California, General Obligation Bonds, Series 2000, 5.500%, 6/01/25 6/10 at 100.00 A+ 82,490
52
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
California, General Obligation Bonds, Series 2003:
$ 3,750 5.250%, 11/01/19 - RAAI Insured 11/13 at 100.00 A+ $ 3,931,650
500 5.250%, 2/01/33 2/13 at 100.00 A+ 502,915
6,300 California, General Obligation Bonds, Series 2004, 5.200%, 4/01/26 4/14 at 100.00 A+ 6,425,685
6,085 California, General Obligation Veterans Welfare Bonds, 12/08 at 100.00 AA- 6,084,148
Series 1997BJ, 5.700%, 12/01/32 (Alternative Minimum Tax)
1,370 Fremont-Newark Community College District, Alameda County, 8/11 at 101.00 AA 1,459,598
California, General Obligation Bonds, Series 2002A,
5.375%, 8/01/20 - MBIA Insured
3,610 Hartnell Community College District, California, General 6/16 at 100.00 AAA 3,688,879
Obligation Bonds, Series 2008, 5.000%, 6/01/29 -
FSA Insured (UB)
5,255 Livermore Valley Joint Unified School District, Alameda 8/11 at 100.00 AAA 5,323,683
County, California, General Obligation Bonds, Election of 1999,
Series 2001, 5.125%, 8/01/26 - FSA Insured
2,645 Long Beach Community College District, California, General 5/15 at 100.00 AA- 2,661,214
Obligation Bonds, Series 2005B, 5.000%, 5/01/30 - FGIC Insured
1,170 Los Angeles Unified School District, California, General 7/13 at 100.00 AAA 1,254,603
Obligation Bonds, Series 2003F, 5.000%, 7/01/17 -
FSA Insured
565 Roseville Joint Union High School District, Placer County, 8/15 at 100.00 AA- 574,560
California, General Obligation Bonds, Series 2006B,
5.000%, 8/01/27 - FGIC Insured
1,500 Sacramento City Unified School District, Sacramento County, 7/15 at 100.00 Aa3 1,533,885
California, General Obligation Bonds, Series 2005,
5.000%, 7/01/27 - MBIA Insured
6,760 San Diego Unified School District, San Diego County, 7/13 at 101.00 AAA 7,450,331
California, General Obligation Bonds, Series 2003E,
5.250%, 7/01/21 - FSA Insured
515 San Joaquin Delta Community College District, California, 8/15 at 100.00 AAA 525,238
General Obligation Bonds, Series 2005A, 5.000%, 8/01/29 -
FSA Insured
1,500 San Jose Unified School District, Santa Clara County, 8/15 at 100.00 AA 1,533,390
California, General Obligation Bonds, Series 2005B,
5.000%, 8/01/25 - FGIC Insured
6,865 San Ramon Valley Unified School District, Contra Costa 8/13 at 100.00 AAA 7,055,984
County, California, General Obligation Bonds, Series 2008,
5.000%, 8/01/23 - FSA Insured (UB)
1,390 South Pasadena Unified School District, Los Angeles County, 8/13 at 100.00 AA- 1,428,364
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 4,033,173
County, California, General Obligation Bonds, Series 2003B,
5.000%, 8/01/23 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
55,720 Total Tax Obligation/General 57,614,364
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 30.5% (19.7% OF TOTAL INVESTMENTS)
1,655 Bell Community Housing Authority, California, Lease Revenue 10/15 at 100.00 AA 1,594,493
Bonds, Series 2005, 5.000%, 10/01/36 - AMBAC Insured
1,200 Burbank Public Financing Authority, California, Revenue Bonds, 12/12 at 100.00 AA 1,217,064
West Olive Redevelopment Project, Series 2002,
5.125%, 12/01/22 - AMBAC Insured
3,070 California State Public Works Board, Lease Revenue Bonds, 12/12 at 100.00 AA 3,248,766
Department of General Services, Capital East End Project,
Series 2002A, 5.250%, 12/01/16 - AMBAC Insured
2,030 California State Public Works Board, Lease Revenue Bonds, 3/12 at 100.00 AA 2,102,146
Department of General Services, Series 2002C,
5.250%, 3/01/21 - AMBAC Insured
5,115 California State Public Works Board, Lease Revenue Bonds, 6/14 at 100.00 A 5,424,662
Department of Mental Health, Coalinga State Hospital,
Series 2004A, 5.500%, 6/01/20
2,715 California, Economic Recovery Revenue Bonds, Series 2004A, 7/14 at 100.00 AA+ 2,971,758
5.000%, 7/01/15
690 Capistrano Unified School District, Orange County, California, 9/15 at 100.00 N/R 670,749
Special Tax Bonds, Community Facilities District, Series 2005,
5.000%, 9/01/24 - FGIC Insured
3,000 Coachella Valley Unified School District, Riverside County, 9/16 at 100.00 Aa3 2,927,880
California, Certificates of Participation, Series 2007,
5.000%, 9/01/31 - AMBAC Insured
53
NUC
Nuveen California Quality Income Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS August 31, 2008
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
Commerce Community Development Commission, California, Tax
Allocation Refunding Bonds, Merged Area Development Projects 2
and 3, Series 1998A:
$ 1,000 5.650%, 8/01/18 2/09 at 102.00 N/R $ 1,001,120
2,765 5.700%, 8/01/28 2/09 at 102.00 N/R 2,578,335
1,250 Coronado Community Development Agency, California, Tax 9/15 at 100.00 AA 1,241,750
Allocation Bonds, Community Development Project, Series 2005,
5.000%, 9/01/30 - AMBAC Insured
3,065 Corona-Norco Unified School District, Riverside County, 9/13 at 100.00 AA 3,149,165
California, Special Tax Bonds, Community Facilities
District 98-1, Series 2003, 5.500%, 9/01/33 -
MBIA Insured
1,930 Fresno, California, Certificates of Participation, Street 12/08 at 100.00 AA- 1,950,111
Improvement Project, Series 1991, 6.625%, 12/01/11
Golden State Tobacco Securitization Corporation, California,
Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A,
Trust 2215-1:
1,885 13.277%, 6/01/38 - FGIC Insured (IF) 6/15 at 100.00 A 1,232,790
1,320 13.277%, 6/01/45 - FGIC Insured (IF) 6/15 at 100.00 A 798,046
9,500 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 A 8,713,590
Tobacco Settlement Asset-Backed Revenue Bonds,
Series 2005A, 5.000%, 6/01/35 - FGIC Insured
Irvine, California, Unified School District, Community Facilities
District Special Tax Bonds, Series 2006A:
335 5.000%, 9/01/26 9/16 at 100.00 N/R 303,386
775 5.125%, 9/01/36 9/16 at 100.00 N/R 682,132
3,245 Los Angeles Community Redevelopment Agency, California, 9/15 at 100.00 Aa3 3,153,069
Lease Revenue Bonds, Manchester Social Services Project,
Series 2005, 5.000%, 9/01/37 - AMBAC Insured
1,350 Los Angeles Community Redevelopment Agency, California, 3/13 at 100.00 BBB- 1,304,721
Subordinate Lien Tax Allocation Bonds, Bunker Hill
Redevelopment Project, Series 2004L, 5.100%, 3/01/19
4,850 Los Angeles County Metropolitan Transportation Authority, 7/13 at 100.00 AAA 5,219,134
California, Proposition A First Tier Senior Sales Tax Revenue
Bonds, Series 2003A, 5.000%, 7/01/16 - FSA Insured
15,300 Ontario Redevelopment Financing Authority, San Bernardino No Opt. Call AA 19,349,297
County, California, Revenue Refunding Bonds, Redevelopment
Project 1, Series 1995, 7.400%, 8/01/25 - MBIA Insured
1,170 Panama-Buena Vista Union School District, California, 9/16 at 100.00 AA 1,196,325
Certificates of Participation, School Construction Project,
Series 2006, 5.000%, 9/01/24 - MBIA Insured
Redding Redevelopment Agency, California, Tax Allocation Bonds,
Canby-Hilltop-Cypress Area Project, Series 2003A:
1,500 5.000%, 9/01/17 - MBIA Insured 9/13 at 100.00 AA 1,605,690
1,500 5.000%, 9/01/20 - MBIA Insured 9/13 at 100.00 AA 1,545,135
600 Rialto Redevelopment Agency, California, Tax Allocation Bonds, 9/15 at 100.00 A- 574,308
Merged Project Area, Series 2005A, 5.000%, 9/01/35 -
XLCA Insured
4,320 Richmond Joint Powers Financing Authority, California, Tax 9/13 at 100.00 AA 4,457,894
Allocation Bonds, Series 2003A, 5.250%, 9/01/22 -
MBIA Insured
2,000 Rohnert Park Community Development Commission, 8/17 at 100.00 A- 1,905,960
California, Redevelopment Project Tax Allocation Bonds,
Series 2007R, 5.000%, 8/01/37 - FGIC Insured
745 Roseville, California, Certificates of Participation, Public 8/13 at 100.00 AA 748,516
Facilities, Series 2003A, 5.000%, 8/01/25 - AMBAC Insured
8,625 Sacramento City Financing Authority, California, Capital 12/16 at 100.00 AA 8,534,179
Improvement Revenue Bonds, 300 Richards Boulevard,
Series 2006C, 5.000%, 12/01/36 - AMBAC Insured
2,500 San Jose Financing Authority, California, Lease Revenue 9/11 at 100.00 AA+ 2,586,250
Refunding Bonds, Convention Center Project, Series 2001F,
5.000%, 9/01/20 - MBIA Insured
2,770 Santa Ana Community Redevelopment Agency, Orange County, 9/13 at 100.00 A- 2,849,831
California, Tax Allocation Refunding Bonds, South Main Street
Redevelopment, Series 2003B, 5.000%, 9/01/19 -
FGIC Insured
2,090 Washington Unified School District, Yolo County, California, 8/17 at 100.00 AA 2,048,221
Certificates of Participation, Series 2007, 5.125%, 8/01/37 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
95,865 Total Tax Obligation/Limited 98,886,473
------------------------------------------------------------------------------------------------------------------------------------
54
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 14.5% (9.4% OF TOTAL INVESTMENTS)
$ 3,950 Bay Area Toll Authority, California, Revenue Bonds, San Francisco 4/16 at 100.00 AA $ 4,002,101
Bay Area Toll Bridge, Series 2006, 5.000%, 4/01/31 (UB)
1,910 Bay Area Toll Authority, California, Revenue Bonds, San Francisco 4/18 at 100.00 AA 2,017,227
Bay Area Toll Bridge, Series 2008, Trust 2921,
13.428%, 4/01/39 (IF)
11,000 Foothill/Eastern Transportation Corridor Agency, California, 1/14 at 101.00 BBB- 10,205,140
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 AA 2,057,860
Revenue Bonds, 91 Express Lanes Project, Series 2003A,
5.000%, 8/15/20 - AMBAC Insured
2,685 Sacramento County, California, Airport System Revenue Bonds, 7/12 at 100.00 AAA 2,960,320
Series 2002A, 5.250%, 7/01/21 - FSA Insured
20,000 San Francisco Airports Commission, California, Revenue Bonds, 5/10 at 101.00 AAA 20,288,399
San Francisco International Airport, Second Series 2000,
Issue 25, 5.750%, 5/01/30 - FSA Insured
(Alternative Minimum Tax)
San Francisco Airports Commission, California, Revenue Refunding
Bonds, San Francisco International Airport, Second Series 2002,
Issue 28A:
1,480 5.250%, 5/01/17 - MBIA Insured (Alternative Minimum Tax) 5/12 at 100.00 AA 1,492,861
3,865 5.250%, 5/01/19 - MBIA Insured (Alternative Minimum Tax) 5/12 at 100.00 AA 3,870,334
------------------------------------------------------------------------------------------------------------------------------------
46,890 Total Transportation 46,894,242
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 45.5% (29.5% OF TOTAL INVESTMENTS) (4)
7,325 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 N/R (4) 7,901,771
Settlement Asset-Backed Bonds, Sonoma County Tobacco
Funding Corporation, Series 2002B, 5.500%, 6/01/30
(Pre-refunded 6/01/12)
9,000 California Department of Water Resources, Power Supply 5/12 at 101.00 Aaa 9,934,290
Revenue Bonds, Series 2002A, 5.125%, 5/01/18
(Pre-refunded 5/01/12)
6,190 California Educational Facilities Authority, Revenue Bonds, 11/10 at 100.00 A2 (4) 6,676,286
University of the Pacific, Series 2000, 5.750%, 11/01/30
(Pre-refunded 11/01/10) - MBIA Insured
California Health Facilities Financing Authority, Revenue Bonds,
Cedars-Sinai Medical Center, Series 1999A:
2,955 6.125%, 12/01/30 (Pre-refunded 12/01/09) 12/09 at 101.00 N/R (4) 3,139,658
7,700 6.250%, 12/01/34 (Pre-refunded 12/01/09) 12/09 at 101.00 N/R (4) 8,193,031
8,000 California Pollution Control Financing Authority, Solid Waste 11/08 at 100.00 Aaa 9,498,640
Disposal Revenue Bonds, North County Recycling Center,
Series 1991A, 6.750%, 7/01/17 (ETM)
1,965 California State, General Obligation Bonds, Series 2002, 4/12 at 100.00 AAA 2,156,077
5.250%, 4/01/32 (Pre-refunded 4/01/12)
1,515 California Statewide Community Development Authority, 10/13 at 101.00 Aaa 1,709,556
Water and Wastewater Revenue Bonds, Pooled Financing
Program, Series 2004A, 5.250%, 10/01/24
(Pre-refunded 10/01/13) - FSA Insured
California, General Obligation Bonds, Series 2000:
1,105 5.500%, 6/01/25 (Pre-refunded 6/01/10) 6/10 at 100.00 AAA 1,166,206
315 5.500%, 6/01/25 (Pre-refunded 6/01/10) 6/10 at 100.00 AAA 332,448
2,500 California, General Obligation Bonds, Series 2004, 2/14 at 100.00 AAA 2,785,950
5.125%, 2/01/27 (Pre-refunded 2/01/14)
4,440 Coast Community College District, Orange County, California, 8/13 at 100.00 AA (4) 4,882,046
General Obligation Refunding Bonds, Series 2003A,
5.000%, 8/01/22 (Pre-refunded 8/01/13) - MBIA Insured
1,615 Compton Unified School District, Los Angeles County, 9/13 at 100.00 AA (4) 1,815,841
California, General Obligation Bonds, Series 2003A,
5.375%, 9/01/19 (Pre-refunded 9/01/13) - MBIA Insured
12,805 Contra Costa County, California, GNMA Mortgage-Backed No Opt. Call AAA 16,955,228
Securities Program Home Mortgage Revenue Bonds,
Series 1988, 8.250%, 6/01/21 (Alternative Minimum Tax) (ETM)
3,000 Daly City Housing Development Finance Agency, California, 12/13 at 102.00 N/R (4) 3,486,390
Mobile Home Park Revenue Bonds, Franciscan Mobile Home
Park Project, Series 2002A, 5.850%, 12/15/32
(Pre-refunded 12/15/13)
Golden State Tobacco Securitization Corporation, California,
Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2003B:
5,000 5.625%, 6/01/33 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 5,536,500
2,500 5.625%, 6/01/38 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 2,768,250
55
NUC
Nuveen California Quality Income Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS August 31, 2008
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 8,000 Los Angeles County Metropolitan Transportation Authority, 7/10 at 101.00 AA (4) $ 8,553,840
California, Proposition C Second Senior Lien Sales Tax
Revenue Bonds, Series 2000A, 5.250%, 7/01/25
(Pre-refunded 7/01/10) - FGIC Insured
2,000 Los Angeles Unified School District, California, General 7/10 at 100.00 AA- (4) 2,123,640
Obligation Bonds, Series 2000D, 5.375%, 7/01/25
(Pre-refunded 7/01/10) - FGIC Insured
3,005 Monterey County, California, Certificates of Participation, 8/11 at 100.00 A2 (4) 3,241,103
Master Plan Financing, Series 2001, 5.000%, 8/01/20
(Pre-refunded 8/01/11) - MBIA Insured
2,375 Moreno Valley Unified School District, Riverside County, 8/14 at 100.00 AAA 2,679,119
California, General Obligation Bonds, Series 2004A,
5.250%, 8/01/24 (Pre-refunded 8/01/14) - FSA Insured
5,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 5,189,600
Obligation Bonds, Series 2000A, 5.500%, 10/01/32
13,375 San Bernardino County, California, GNMA Mortgage-Backed No Opt. Call AAA 15,356,104
Securities Program Single Family Home Mortgage Revenue
Bonds, Series 1989A, 7.750%, 11/01/14
(Alternative Minimum Tax) (ETM)
3,000 San Francisco Airports Commission, California, Revenue 5/12 at 100.00 AA (4) 3,297,060
Refunding Bonds, San Francisco International Airport,
Second Series 2002, Issue 28B, 5.250%, 5/01/22
(Pre-refunded 5/01/12) - MBIA Insured
1,615 University of California, Certificates of Participation, 1/10 at 101.00 Aa1 (4) 1,700,240
San Diego and Sacramento Campus Projects, Series 2002A,
5.250%, 1/01/21 (Pre-refunded 1/01/10)
University of California, Revenue Bonds, Multi-Purpose Projects,
Series 2002O:
5,265 5.000%, 9/01/18 (Pre-refunded 9/01/10) - FGIC Insured 9/10 at 101.00 AA (4) 5,627,916
10,255 5.000%, 9/01/19 (Pre-refunded 9/01/10) - FGIC Insured 9/10 at 101.00 AA (4) 10,961,876
------------------------------------------------------------------------------------------------------------------------------------
131,820 Total U.S. Guaranteed 147,668,666
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 7.3% (4.7% OF TOTAL INVESTMENTS)
3,695 Long Beach Bond Finance Authority, California, Natural Gas No Opt. Call A 3,215,426
Purchase Revenue Bonds, Series 2007A, 5.000%, 11/15/35
500 Los Angeles Department of Water and Power, California, Power 7/15 at 100.00 Aaa 506,325
System Revenue Bonds, Series 2008, 5.000%, 7/01/31 -
FSA Insured (UB)
1,235 Merced Irrigation District, California, Electric System Revenue 9/15 at 100.00 BBB- 1,130,568
Bonds, Series 2005, 5.125%, 9/01/31 - XLCA Insured
5,000 Merced Irrigation District, California, Revenue Certificates of 9/13 at 102.00 Baa3 4,880,450
Participation, Electric System Project, Series 2003,
5.700%, 9/01/36
1,200 Sacramento Municipal Utility District, California, Electric No Opt. Call A1 1,226,004
Revenue Bonds, Series 2004T, 5.250%, 5/15/23 -
FGIC Insured
2,410 Sacramento Municipal Utility District, California, Electric 8/12 at 100.00 AAA 2,506,762
Revenue Refunding Bonds, Series 2002Q, 5.250%, 8/15/21 -
FSA Insured
4,000 Southern California Public Power Authority, Revenue Bonds, 7/13 at 100.00 AA 4,113,000
Magnolia Power Project, Series 2003-1A, 5.000%, 7/01/20 -
AMBAC Insured
5,500 Southern California Public Power Authority, Revenue Bonds, No Opt. Call AA- 6,117,320
Multiple Projects, Series 1989, 6.750%, 7/01/11
------------------------------------------------------------------------------------------------------------------------------------
23,540 Total Utilities 23,695,855
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 7.4% (4.8% OF TOTAL INVESTMENTS)
5,525 California Statewide Community Development Authority, Water 10/13 at 101.00 AAA 5,809,096
and Wastewater Revenue Bonds, Pooled Financing Program,
Series 2004A, 5.250%, 10/01/24 - FSA Insured
1,270 Eastern Municipal Water District, California, Water and Sewerage 7/18 at 100.00 AA 1,232,611
System Revenue Certificates of Participation, Series 2008,
Trust 2925, 13.177%, 7/01/35 (IF)
Goleta Water District, California, Certificates of Participation
Revenue Bonds, Series 2003:
1,000 5.250%, 12/01/20 - MBIA Insured 12/13 at 100.00 AA 1,051,930
1,440 5.250%, 12/01/21 - MBIA Insured 12/13 at 100.00 AA 1,501,718
1,205 5.250%, 12/01/22 - MBIA Insured 12/13 at 100.00 AA 1,259,635
56
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 850 Healdsburg Public Financing Authority, California, Wastewater 4/16 at 100.00 AA $ 832,516
Revenue Bonds, Series 2006, 5.000%, 4/01/36 - MBIA Insured
1,250 Indio Water Authority, California, Water Revenue Bonds, 4/16 at 100.00 AA 1,251,513
Series 2006, 5.000%, 4/01/31 - AMBAC Insured
500 Norco, California, Certificates of Participation Refunding, 10/08 at 102.00 AA 501,890
Water and Sewerage System Improvement Project,
Series 1998, 5.125%, 10/01/28 - AMBAC Insured
1,500 Puerto Rico Aqueduct and Sewerage Authority, Revenue Bonds, 7/18 at 100.00 BBB- 1,572,540
Senior Lien Series 2008A, 6.000%, 7/01/38
5,375 San Francisco City and County Public Utilities Commission, 11/12 at 100.00 AA 5,596,128
California, Water Revenue Bonds, Series 2002A,
5.000%, 11/01/19 - MBIA Insured
Turlock Public Finance Authority, California, Sewerage
Revenue Bonds, Series 2003A:
1,565 5.000%, 9/15/19 - FGIC Insured 9/13 at 100.00 AA 1,607,396
1,650 5.000%, 9/15/20 - FGIC Insured 9/13 at 100.00 AA 1,684,964
------------------------------------------------------------------------------------------------------------------------------------
23,130 Total Water and Sewer 23,901,937
------------------------------------------------------------------------------------------------------------------------------------
$ 486,996 Total Investments (cost $488,989,410) - 154.5% 501,214,735
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (7.0)% (22,761,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 3.4% 10,924,978
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (50.9)% (5) (165,025,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $324,353,713
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
(2) Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates (month
and year) and prices of the earliest optional call or
redemption. There may be other call provisions at varying
prices at later dates. Certain mortgage-backed securities
may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered
public accounting firm): Using the higher of Standard &
Poor's Group ("Standard & Poor's") or Moody's Investor
Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be
below investment grade. The Portfolio of Investments may
reflect the ratings on certain bonds insured by ACA, AMBAC,
CIFG, FGIC, MBIA, RAAI and XLCA as of August 31, 2008.
Please see the Portfolio Manager's Commentary for an
expanded discussion of the affect on the Fund of changes to
the ratings of certain bonds in the portfolio resulting from
changes to the ratings of the underlying insurers both
during the period and after period end.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which ensure
the timely payment of principal and interest. Such
investments are normally considered to be equivalent to AAA
rated securities.
(5) Preferred Shares, at Liquidation Value as a percentage of
Total Investments is 32.9%.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected
as a financing transaction pursuant to the provisions of
SFAS No. 140.
See accompanying notes to financial statements.
57
Statement of
ASSETS & LIABILITIES
August 31, 2008
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
CALIFORNIA PERFORMANCE CALIFORNIA INVESTMENT SELECT QUALITY
VALUE PLUS OPPORTUNITY QUALITY QUALITY INCOME
(NCA) (NCP) (NCO) (NQC) (NVC) (NUC)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $248,196,247,
$283,804,797, $179,643,656,
$302,496,877, $501,381,333
and $488,989,410,
respectively) $251,651,119 $284,309,710 $181,844,971 $303,645,510 $503,383,582 $501,214,735
Cash -- 9,534,242 6,651,780 15,176,271 22,495,666 16,991,089
Receivables:
Interest 3,103,878 4,313,974 2,189,258 4,795,335 7,191,549 7,398,477
Investments sold 215,000 -- -- -- -- --
Other assets 16,326 43,102 16,380 41,108 54,344 64,387
------------------------------------------------------------------------------------------------------------------------------------
Total assets 254,986,323 298,201,028 190,702,389 323,658,224 533,125,141 525,668,688
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 3,526,433 -- -- -- -- --
Payable for Preferred
shares noticed
for redemption, at
liquidation value -- 5,150,000 -- 13,725,000 7,100,000 11,875,000
Floating rate obligations 5,451,000 8,255,000 5,146,000 19,225,000 24,189,000 22,761,000
Accrued expenses:
Management fees 117,031 153,827 98,918 162,320 273,204 266,433
Other 88,246 98,341 47,236 99,272 144,670 150,060
Common share dividends payable 818,504 631,514 422,407 705,605 1,176,351 1,163,904
Preferred share dividends payable N/A 44,406 23,332 44,329 52,056 73,578
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 10,001,214 14,333,088 5,737,893 33,961,526 32,935,281 36,289,975
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at
liquidation value N/A 99,925,000 68,000,000 94,925,000 169,275,000 165,025,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable
to Common shares $244,985,109 $183,942,940 $116,964,496 $194,771,698 $330,914,860 $324,353,713
====================================================================================================================================
Common shares outstanding 25,253,681 12,965,742 8,168,248 13,580,232 23,129,870 22,020,090
====================================================================================================================================
Net asset value per Common
share outstanding (net
assets applicable to Common
shares, divided by
Common shares outstanding) $ 9.70 $ 14.19 $ 14.32 $ 14.34 $ 14.31 $ 14.73
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01
par value per share $ 252,537 $ 129,657 $ 81,682 $ 135,802 $ 231,299 $ 220,201
Paid-in surplus 237,693,682 181,322,141 113,918,317 189,659,207 322,552,272 306,794,127
Undistributed
(Over-distribution of)
net investment income 488,787 511,590 233,032 435,127 640,817 156,979
Accumulated net realized
gain (loss) from
investments and
derivative transactions 3,095,231 1,474,639 530,150 3,392,929 5,488,223 4,957,081
Net unrealized
appreciation (depreciation)
of investments 3,454,872 504,913 2,201,315 1,148,633 2,002,249 12,225,325
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable
to Common shares $244,985,109 $183,942,940 $116,964,496 $194,771,698 $330,914,860 $324,353,713
====================================================================================================================================
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.
58
Statement of
OPERATIONS
Year Ended August 31, 2008
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
CALIFORNIA PERFORMANCE CALIFORNIA INVESTMENT SELECT QUALITY
VALUE PLUS OPPORTUNITY QUALITY QUALITY INCOME
(NCA) (NCP) (NCO) (NQC) (NVC) (NUC)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $13,447,961 $15,267,277 $ 9,863,381 $16,327,959 $27,912,079 $27,298,003
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 1,383,651 1,848,883 1,188,601 1,950,563 3,285,608 3,189,721
Preferred shares - auction fees N/A 264,975 170,000 279,908 479,646 462,279
Preferred shares - dividend
disbursing agent fees N/A 30,000 20,000 20,000 30,000 30,000
Shareholders' servicing agent fees
and expenses 32,363 19,101 12,221 17,984 24,545 20,911
Interest expense on
floating rate obligations 116,513 137,462 103,449 291,576 340,053 335,404
Custodian's fees and expenses 76,916 79,346 56,859 79,272 127,877 151,698
Directors' fees and expenses 5,730 9,208 4,283 6,851 12,672 11,543
Professional fees 19,919 29,610 22,769 27,254 28,662 38,110
Shareholders' reports - printing
and mailing expenses 45,391 37,322 24,550 37,298 52,568 53,256
Stock exchange listing fees 9,367 9,367 9,396 9,367 9,367 9,414
Investor relations expense 28,308 28,529 18,320 30,074 49,277 48,039
Other expenses 10,214 29,916 7,623 30,507 36,917 44,495
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before
custodian fee credit 1,728,372 2,523,719 1,638,071 2,780,654 4,477,192 4,394,870
Custodian fee credit (23,941) (20,349) (12,310) (15,904) (32,565) (22,896)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 1,704,431 2,503,370 1,625,761 2,764,750 4,444,627 4,371,974
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 11,743,530 12,763,907 8,237,620 13,563,209 23,467,452 22,926,029
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED
GAIN (LOSS)
Net realized gain (loss) from:
Investments 1,595,437 1,252,724 240,166 1,706,500 2,014,812 1,242,906
Forward swaps 1,544,426 481,957 319,511 1,916,826 3,564,177 3,851,151
Change in net unrealized
appreciation (depreciation) of:
Investments (6,882,534) (8,379,980) (4,808,766) (9,296,655) (14,542,844) (9,075,658)
Forward swaps (642,663) (146,052) 1,358 (579,016) (1,075,627) (1,162,220)
------------------------------------------------------------------------------------------------------------------------------------
Net realized and
unrealized gain (loss) (4,385,334) (6,791,351) (4,247,731) (6,252,345) (10,039,482) (5,143,821)
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income N/A (3,265,290) (2,153,159) (3,599,218) (5,994,043) (6,363,248)
From accumulated net realized gains N/A (348,912) (215,479) (59,134) (410,088) --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Preferred shareholders N/A (3,614,202) (2,368,638) (3,658,352) (6,404,131) (6,363,248)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations $ 7,358,196 $ 2,358,354 $ 1,621,251 $ 3,652,512 $ 7,023,839 $11,418,960
====================================================================================================================================
N/A - Fund is not authorized to issue Preferred shares.
See accompanying notes to financial statements.
59
Statement of
CHANGES in NET ASSETS
CALIFORNIA VALUE (NCA) CALIFORNIA PERFORMANCE PLUS (NCP) CALIFORNIA OPPORTUNITY (NCO)
------------------------------ --------------------------------- -----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
8/31/08 8/31/07 8/31/08 8/31/07 8/31/08 8/31/07
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 11,743,530 $ 11,458,806 $ 12,763,907 $ 12,506,724 $ 8,237,620 $ 8,093,150
Net realized gain (loss) from:
Investments 1,595,437 285,881 1,252,724 707,835 240,166 1,377,217
Forward swaps 1,544,426 116,800 481,957 731,300 319,511 (85,714)
Change in net unrealized
appreciation
(depreciation) of:
Investments (6,882,534) (6,426,708) (8,379,980) (8,786,247) (4,808,766) (6,864,917)
Forward swaps (642,663) (56,964) (146,052) (556,393) 1,358 (1,358)
Distributions to
Preferred Shareholders:
From net investment income N/A N/A (3,265,290) (3,344,706) (2,153,159) (2,275,505)
From accumulated net
realized gains N/A N/A (348,912) (208,558) (215,479) --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 7,358,196 5,377,815 2,358,354 1,049,955 1,621,251 242,873
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (11,057,213) (11,512,039) (8,917,838) (9,259,482) (5,776,585) (6,489,586)
From accumulated net
realized gains (451,828) (712,571) (963,355) (683,961) (607,718) --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable
to Common shares from
distributions to Common
shareholders (11,509,041) (12,224,610) (9,881,193) (9,943,443) (6,384,303) (6,489,586)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions 114,284 -- -- -- -- 182,321
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets applicable
to Common shares from
capital share transactions 114,284 -- -- -- -- 182,321
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
applicable to
Common shares (4,036,561) (6,846,795) (7,522,839) (8,893,488) (4,763,052) (6,064,392)
Net assets applicable
to Common shares
at the beginning of year 249,021,670 255,868,465 191,465,779 200,359,267 121,727,548 127,791,940
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of year $244,985,109 $249,021,670 $183,942,940 $191,465,779 $116,964,496 $121,727,548
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the end
of year $ 488,787 $ (189,797) $ 511,590 $ (42,624) $ 233,032 $ (57,947)
====================================================================================================================================
N/A - Fund is not authorized to issue Preferred shares.
See accompanying notes to financial statements.
60
CALIFORNIA INVESTMENT QUALITY (NQC) CALIFORNIA SELECT QUALITY (NVC) CALIFORNIA QUALITY INCOME (NUC)
----------------------------------- ------------------------------- -------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
8/31/08 8/31/07 8/31/08 8/31/07 8/31/08 8/31/07
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 13,563,209 $ 13,162,184 $ 23,467,452 $ 22,553,630 $ 22,926,029 $ 22,166,977
Net realized gain (loss) from:
Investments 1,706,500 14,246 2,014,812 607,991 1,242,906 (86,120)
Forward swaps 1,916,826 55,300 3,564,177 802,400 3,851,151 (35,100)
Change in net unrealized
appreciation (depreciation) of:
Investments (9,296,655) (8,137,893) (14,542,844) (15,805,336) (9,075,658) (12,873,328)
Forward swaps (579,016) (117,109) (1,075,627) (424,362) (1,162,220) (28,727)
Distributions to
Preferred Shareholders:
From net investment income (3,599,218) (3,463,790) (5,994,043) (6,274,053) (6,363,248) (6,134,827)
From accumulated net
realized gains (59,134) (261,799) (410,088) (290,571) -- (175,677)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 3,652,512 1,251,139 7,023,839 1,169,699 11,418,960 2,833,198
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (9,784,557) (9,533,321) (16,098,392) (17,364,648) (15,821,435) (16,895,802)
From accumulated net
realized gains (162,963) (893,572) (1,112,547) (1,062,552) -- (592,043)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable
to Common shares from
distributions to Common
shareholders (9,947,520) (10,426,893) (17,210,939) (18,427,200) (15,821,435) (17,487,845)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions -- -- -- 228,521 -- 315,124
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
capital share transactions -- -- -- 228,521 -- 315,124
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
applicable to
Common shares (6,295,008) (9,175,754) (10,187,100) (17,028,980) (4,402,475) (14,339,523)
Net assets applicable
to Common shares
at the beginning of year 201,066,706 210,242,460 341,101,960 358,130,940 328,756,188 343,095,711
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of year $194,771,698 $201,066,706 $330,914,860 $341,101,960 $324,353,713 $328,756,188
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income
at the end of year $ 435,127 $ 204,202 $ 640,817 $ (697,633) $ 156,979 $ (525,730)
====================================================================================================================================
See accompanying notes to financial statements.
61
Notes to
FINANCIAL STATEMENTS
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The funds covered in this report and their corresponding Common share New York
Stock Exchange symbols are Nuveen California Municipal Value Fund, Inc. (NCA),
Nuveen California Performance Plus Municipal Fund, Inc. (NCP), Nuveen California
Municipal Market Opportunity Fund, Inc. (NCO), Nuveen California Investment
Quality Municipal Fund, Inc. (NQC), Nuveen California Select Quality Municipal
Fund, Inc. (NVC) and Nuveen California Quality Income Municipal Fund, Inc. (NUC)
(collectively, the "Funds"). The Funds are registered under the Investment
Company Act of 1940, as amended, as closed-end, diversified management
investment companies.
Each Fund seeks to provide current income exempt from both regular federal and
California state income taxes by investing primarily in a diversified portfolio
of municipal obligations issued by state and local government authorities within
the state of California or certain U.S. territories.
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.
Investment Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors. When market
price quotes are not readily available (which is usually the case for municipal
securities), the pricing service may establish fair 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. Prices of
forward swap contracts are also provided by an independent pricing service
approved by each Fund's Board of Directors. If the pricing service is unable to
supply a price for an investment or derivative instrument, each Fund may use
market quotes provided by major broker/dealers in such investments. If it is
determined that the market price for an investment or derivative instrument is
unavailable or inappropriate, the Board of Directors of the Funds, or its
designee, may establish fair value in accordance with procedures established in
good faith by the Board of Directors. Temporary investments in securities that
have variable rate and demand features qualifying them as short-term investments
are valued at amortized cost, which approximates value.
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and
losses from transactions are determined on the specific identification method.
Investments purchased on a when-issued/delayed delivery basis may have extended
settlement periods. Any investments so purchased are subject to market
fluctuation during this period. The Funds have instructed the custodian to
segregate assets with a current value at least equal to the amount of the
when-issued/delayed delivery purchase commitments. At August 31, 2008, there
were no such outstanding purchase commitments in any of the Funds.
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
Investment income also includes paydown gains and losses, if any.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute substantially all of its net investment income and net
capital gains to shareholders and to otherwise comply with the requirements of
Subchapter M of the Internal Revenue Code applicable to regulated investment
companies. Therefore, no federal income tax provision is required. Furthermore,
each Fund intends to satisfy conditions which will enable interest from
municipal securities, which is exempt from regular federal and California state
income taxes, to retain such tax-exempt status when distributed to shareholders
of the Funds. Net realized capital gains and ordinary income distributions paid
by the Funds are subject to federal taxation.
62
Effective February 29, 2008, the Funds adopted Financial Accounting Standards
Board (FASB) Interpretation No. 48 ``Accounting for Uncertainty in Income
Taxes'' (FIN 48). FIN 48 provides guidance for how uncertain tax positions
should be recognized, measured, presented and disclosed in the financial
statements. FIN 48 requires the affirmative evaluation of tax positions taken or
expected to be taken in the course of preparing the Funds' tax returns to
determine whether it is ``more-likely-than-not'' (i.e., a greater than
50-percent likelihood) of being sustained by the applicable tax authority. Tax
positions not deemed to meet the more-likely-than-not threshold may result in a
tax expense in the current year.
Implementation of FIN 48 required management of the Funds to analyze all open
tax years, as defined by the statute of limitations, for all major
jurisdictions, which includes federal and certain states. Open tax years are
those that are open for examination by taxing authorities (i.e., generally, the
last four tax year ends and the interim tax period since then). The Funds have
no examinations in progress.
For all open tax years and all major taxing jurisdictions through the end of the
reporting period, management of the Funds has reviewed all tax positions taken
or expected to be taken in the preparation of the Funds' tax returns and
concluded the adoption of FIN 48 resulted in no impact to the Funds' net assets
or results of operations as of and during the fiscal year ended August 31, 2008.
The Funds are also not aware of any tax positions for which it is reasonably
possible that the total amounts of unrecognized tax benefits will significantly
change in the next twelve months.
Dividends and Distributions to Common Shareholders
Dividends from tax-exempt net investment income are declared monthly. Net
realized capital gains and/or market discount from investment transactions, if
any, are distributed to shareholders at least annually. Furthermore, capital
gains are distributed only to the extent they exceed available capital loss
carryforwards.
Distributions to Common shareholders of tax-exempt net investment income, net
realized capital gains and/or market discount, if any, are recorded on the
ex-dividend date. The amount and timing of distributions are determined in
accordance with federal income tax regulations, which may differ from 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 Preferred shares, $25,000 stated value per
share, as a means of effecting financial leverage. Each Fund's Preferred shares
are issued in more than one Series. The dividend rate paid by the Funds on each
Series is determined every seven days, pursuant to a dutch auction process
overseen by the auction agent, and is payable at the end of each rate period. As
of August 31, 2008, the number of Preferred shares outstanding, by Series and in
total, for each Fund is as follows:
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
PERFORMANCE CALIFORNIA INVESTMENT SELECT QUALITY
PLUS OPPORTUNITY QUALITY QUALITY INCOME
(NCP) (NCO) (NQC) (NVC) (NUC)
------------------------------------------------------------------------------------------------------------------
Number of shares:
Series M -- -- 3,051 -- 1,249
Series T 1,697 -- -- 2,116 --
Series W 603 2,200 746 1,481 2,676
Series TH -- -- -- 3,174 --
Series F 1,697 520 -- -- 2,676
------------------------------------------------------------------------------------------------------------------
Total 3,997 2,720 3,797 6,771 6,601
==================================================================================================================
Beginning in February 2008, more shares for sale were submitted in the regularly
scheduled auctions for the Preferred shares issued by the Funds than there were
offers to buy. This meant that these auctions "failed to clear,'' and that many
Preferred shareholders who wanted to sell their shares in these auctions were
unable to do so. Preferred shareholders unable to sell their shares received
distributions at the "maximum rate'' applicable to failed auctions as calculated
in accordance with the pre-established terms of the Preferred shares.
These developments generally do not affect the management or investment policies
of the Funds. However, one implication of these auction failures for Common
shareholders is that the Funds' cost of leverage will likely be higher, at least
temporarily, than it otherwise would have been had the auctions continued to be
successful. As a result, the Funds' future Common share earnings may be lower
than they otherwise would have been.
63
Notes to
FINANCIAL STATEMENTS (continued)
On June 11, 2008, Nuveen Investments, Inc. ("Nuveen") announced the Fund Board's
approval of plans to use tender option bonds (TOBs), also known as "floaters" or
floating rate obligations, to refinance a portion of the municipal funds'
outstanding auction rate preferred securities (ARPS), whose auctions have been
failing for several months. The plan included an initial phase of approximately
$1 billion in forty-one funds. During the fiscal year ended August 31, 2008,
California Performance Plus (NCP), California Investment Quality (NQC),
California Select Quality (NVC) and California Quality Income (NUC) redeemed
and/or noticed for redemption $6,075,000, $17,075,000, $22,725,000 and
$19,975,000 of their outstanding Preferred shares, respectively, at liquidation
value, using the proceeds from the issuance of TOBs.
Inverse Floating Rate Securities
Each Fund is authorized to invest in inverse floating rate securities. An
inverse floating rate security is created by depositing a municipal bond,
typically with a fixed interest rate, into a special purpose trust created by a
broker-dealer. In turn, this trust (a) issues floating rate certificates, in
face amounts equal to some fraction of the deposited bond's par amount or market
value, that typically pay short-term tax-exempt interest rates to third parties,
and (b) issues to a long-term investor (such as one of the Funds) an inverse
floating rate certificate (sometimes referred to as an "inverse floater") that
represents all remaining or residual interest in the trust. The income received
by the inverse floater holder varies inversely with the short-term rate paid to
the floating rate certificates' holders, and in most circumstances the inverse
floater holder bears substantially all of the underlying bond's downside
investment risk and also benefits disproportionately from any potential
appreciation of the underlying bond's value. The price of an inverse floating
rate security will be more volatile than that of the underlying bond because the
interest rate is dependent on not only the fixed coupon rate of the underlying
bond but also on the short-term interest paid on the floating rate certificates,
and because the inverse floating rate security essentially bears the risk of
loss of the greater face value of the underlying bond.
A Fund may purchase an inverse floating rate security in a secondary market
transaction without first owning the underlying bond (referred to as an
"externally-deposited inverse floater"), or instead by first selling a
fixed-rate bond to a broker-dealer for deposit into the special purpose trust
and receiving in turn the residual interest in the trust (referred to as a
"self-deposited inverse floater"). The inverse floater held by a Fund gives the
Fund the right (a) to cause the holders of the floating rate certificates to
tender their notes at par, and (b) to have the broker transfer the fixed-rate
bond held by the trust to the Fund, thereby collapsing the trust. An investment
in an externally-deposited inverse floater is identified in the Portfolio of
Investments as an "Inverse floating rate investment". An investment in a
self-deposited inverse floater is accounted for as a financing transaction in
accordance with Statement of Financial Accounting Standards (SFAS) No. 140
"Accounting for Transfers and Servicing of Financial Assets and Extinguishment
of Liabilities". In such instances, a fixed-rate bond deposited into a special
purpose trust is identified in the Portfolio of Investments as an "Underlying
bond of an inverse floating rate trust", with the Fund accounting for the
short-term floating rate certificates issued by the trust as "Floating rate
obligations" on the Statement of Assets and Liabilities. In addition, the Fund
reflects in Investment Income the entire earnings of the underlying bond and the
related interest paid to the holders of the short-term floating rate
certificates is included as a component of "Interest expense on floating rate
obligations" on the Statement of Operations.
Each Fund may also enter into shortfall and forbearance agreements (sometimes
referred to as a "recourse trust" or "credit recovery swap") with a
broker-dealer by which a Fund agrees to reimburse the broker-dealer, in certain
circumstances, for the difference between the liquidation value of the
fixed-rate bond held by the trust and the liquidation value of the floating rate
certificates, as well as any shortfalls in interest cash flows. Under these
agreements, a Fund's potential exposure to losses related to or on inverse
floaters increases beyond the value of the investments included in the Fund's
Statement of Assets and Liabilities as the Fund may potentially be liable to
fulfill all amounts owed to holders of the floating rate certificates.
During the fiscal year ended August 31, 2008, each Fund invested in externally
deposited inverse floaters and/or self-deposited inverse floaters.
64
At August 31, 2008, each Fund's maximum exposure to recourse trusts and/or
credit recovery swaps is as follows:
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
CALIFORNIA PERFORMANCE CALIFORNIA INVESTMENT SELECT QUALITY
VALUE PLUS OPPORTUNITY QUALITY QUALITY INCOME
(NCA) (NCP) (NCO) (NQC) (NVC) (NUC)
------------------------------------------------------------------------------------------------------------------
$16,845,000 $ -- $ -- $ -- $ -- $ --
==================================================================================================================
The average floating rate obligations outstanding and average annual interest
rate and fees related to self-deposited inverse floaters during the fiscal year
ended August 31, 2008, were as follows:
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
CALIFORNIA PERFORMANCE CALIFORNIA INVESTMENT SELECT QUALITY
VALUE PLUS OPPORTUNITY QUALITY QUALITY INCOME
(NCA) (NCP) (NCO) (NQC) (NVC) (NUC)
------------------------------------------------------------------------------------------------------------------
Average floating rate obligations $4,457,148 $5,238,421 $3,861,519 $10,970,792 $13,102,464 $12,989,082
Average annual interest rate and fees 2.61% 2.62% 2.68% 2.66% 2.60% 2.58%
==================================================================================================================
Forward Swap Transactions
Each Fund is authorized to invest in forward interest rate swap transactions.
Each Fund's use of forward interest rate swap transactions is intended to help
the Fund manage its overall interest rate sensitivity, either shorter or longer,
generally to more closely align the Fund's interest rate sensitivity with that
of the broader municipal market. Forward interest rate swap transactions involve
each Fund's agreement with a counterparty to pay, in the future, a fixed or
variable rate payment in exchange for the counterparty paying the Fund a
variable or fixed rate payment, the accruals for which would begin at a
specified date in the future (the "effective date"). The amount of the payment
obligation is based on the notional amount of the forward swap contract and the
termination date of the swap (which is akin to a bond's maturity). The value of
the Fund's swap commitment would increase or decrease based primarily on the
extent to which long-term interest rates for bonds having a maturity of the
swap's termination date increases or decreases. The Funds may terminate a swap
contract prior to the effective date, at which point a realized gain or loss is
recognized. When a forward swap is terminated, it ordinarily does not involve
the delivery of securities or other underlying assets or principal, but rather
is settled in cash on a net basis. Each Fund intends, but is not obligated, to
terminate its forward swaps before the effective date. Accordingly, the risk of
loss with respect to the swap counterparty on such transactions is limited to
the credit risk associated with a counterparty failing to honor its commitment
to pay any realized gain to the Fund upon termination. To reduce such credit
risk, all counterparties are required to pledge collateral daily (based on the
daily valuation of each swap) on behalf of each Fund with a value approximately
equal to the amount of any unrealized gain above a pre-determined threshold.
Reciprocally, when any of the Funds have an unrealized loss on a swap contract,
the Funds have instructed the custodian to pledge assets of the Funds as
collateral with a value approximately equal to the amount of the unrealized loss
above a pre-determined threshold. Collateral pledges are monitored and
subsequently adjusted if and when the swap valuations fluctuate, either up or
down, by at least the predetermined threshold amount.
Zero Coupon Securities
Each Fund is authorized to invest in zero coupon securities. A zero coupon
security does not pay a regular interest coupon to its holders during the life
of the security. Tax-exempt income to the holder of the security comes from
accretion of the difference between the original purchase price of the security
at issuance and the par value of the security at maturity and is effectively
paid at maturity. Such securities are included in the Portfolios of Investments
with a 0.000% coupon rate in their description. The market prices of zero coupon
securities generally are more volatile than the market prices of securities that
pay interest periodically.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by net credits earned on each Fund's cash on
deposit with the bank. Such deposit arrangements are an alternative to overnight
investments. Credits for cash balances may be offset by charges for any days on
which a Fund overdraws its account at the custodian bank.
Indemnifications
Under the Funds' organizational documents, their Officers and Directors are
indemnified against certain liabilities arising out of the performance of their
duties to the Funds. In addition, in the normal course of business, the Funds
enter into contracts that provide general indemnifications to other parties. The
Funds' maximum exposure under these arrangements is unknown as this would
involve future claims that may be made against the Funds that have not yet
occurred. However, the Funds have not had prior claims or losses pursuant to
these contracts and expect the risk of loss to be remote.
Use of Estimates
The preparation of financial statements in conformity with 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
65
Notes to
FINANCIAL STATEMENTS (continued)
and the reported amounts of increases and decreases in net assets applicable to
Common shares from operations during the reporting period. Actual results may
differ from those estimates.
2. FUND SHARES
Common Share Repurchases
On July 30, 2008, the Funds' Board of Directors approved a program under which
each Fund may repurchase up to 10% of its common shares. The Funds did not
repurchase any of their common shares during the fiscal year ended August 31,
2008.
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
8/31/08 8/31/07 8/31/08 8/31/07 8/31/08 8/31/07
------------------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due to
reinvestment of distributions 11,873 -- -- -- -- 11,448
==================================================================================================================
CALIFORNIA CALIFORNIA CALIFORNIA
INVESTMENT QUALITY (NQC) SELECT QUALITY (NVC) QUALITY INCOME (NUC)
------------------------ ----------------------- -----------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
8/31/08 8/31/07 8/31/08 8/31/07 8/31/08 8/31/07
------------------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due to
reinvestment of distributions -- -- -- 15,014 -- 20,362
==================================================================================================================
Preferred Share Repurchases
California Value (NCA) is not authorized to issue Preferred shares. Transactions
in Preferred shares were as follows:
CALIFORNIA PERFORMANCE PLUS (NCP) CALIFORNIA OPPORTUNITY (NCO)
-------------------------------------------- ------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
8/31/08 8/31/07 8/31/08 8/31/07
--------------------------------------------------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
--------------------------------------------------------------------------------------------------------------------------
Preferred shares redeemed
and/or noticed for redemption:
Series M -- $ -- -- $ -- -- $ -- -- $ --
Series T 103 2,575,000 -- -- -- -- -- --
Series W 37 925,000 -- -- -- -- -- --
Series TH -- -- -- -- -- -- -- --
Series F 103 2,575,000 -- -- -- -- -- --
--------------------------------------------------------------------------------------------------------------------------
243 $6,075,000 -- $ -- -- $ -- -- $ --
==========================================================================================================================
66
CALIFORNIA INVESTMENT QUALITY (NQC) CALIFORNIA SELECT QUALITY (NVC)
-------------------------------------------- ------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
8/31/08 8/31/07 8/31/08 8/31/07
--------------------------------------------------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
--------------------------------------------------------------------------------------------------------------------------
Preferred shares redeemed
and/or noticed for redemption:
Series M 549 $13,725,000 -- $ -- -- $ -- -- $ --
Series T -- -- -- -- 284 7,100,000 -- --
Series W 134 3,350,000 -- -- 199 4,975,000 -- --
Series TH -- -- -- -- 426 10,650,000 -- --
Series F -- -- -- -- -- -- -- --
--------------------------------------------------------------------------------------------------------------------------
683 $17,075,000 -- $ -- 909 $22,725,000 -- $ --
==========================================================================================================================
CALIFORNIA QUALITY INCOME (NUC)
------------------------------------------
YEAR ENDED YEAR ENDED
8/31/08 8/31/07
--------------------------------------------------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT
--------------------------------------------------------------------------------------------------------------------------
Preferred shares redeemed
and/or noticed for redemption:
Series M 151 $ 3,775,000 -- $ --
Series T -- -- -- --
Series W 324 8,100,000 -- --
Series TH -- -- -- --
Series F 324 8,100,000 -- --
--------------------------------------------------------------------------------------------------------------------------
799 $19,975,000 -- $ --
==========================================================================================================================
3. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities but excluding short-term investments
and derivative transactions) during the fiscal year ended August 31, 2008, 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 $59,582,750 $31,937,641 $14,288,147 $46,434,395 $67,064,154 $52,077,771
Sales and maturities 54,746,712 39,291,807 20,870,725 53,829,195 89,674,224 60,537,690
==================================================================================================================
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 the timing differences in recognizing taxable market discount,
timing differences in recognizing certain gains and losses on investment
transactions and the treatment of investments in inverse floating rate
transactions subject to SFAS No. 140. To the extent that differences arise that
are permanent in nature, such amounts are reclassified within the capital
accounts on the Statement of Assets and Liabilities presented in the annual
report, based on their federal tax basis treatment; temporary differences do not
require reclassification. Temporary and permanent differences do not impact the
net asset values of the Funds.
At August 31, 2008, the cost of investments was as follows:
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
CALIFORNIA PERFORMANCE CALIFORNIA INVESTMENT SELECT QUALITY
VALUE PLUS OPPORTUNITY QUALITY QUALITY INCOME
(NCA) (NCP) (NCO) (NQC) (NVC) (NUC)
------------------------------------------------------------------------------------------------------------------
Cost of investments $242,846,304 $275,460,422 $174,450,509 $283,209,082 $477,203,869 $466,315,866
==================================================================================================================
67
Notes to
FINANCIAL STATEMENTS (continued)
Gross unrealized appreciation and gross unrealized depreciation of investments
at August 31, 2008, were as follows:
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
CALIFORNIA PERFORMANCE CALIFORNIA INVESTMENT SELECT QUALITY
VALUE PLUS OPPORTUNITY QUALITY QUALITY INCOME
(NCA) (NCP) (NCO) (NQC) (NVC) (NUC)
-----------------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $11,362,991 $ 8,683,256 $ 7,247,364 $ 9,592,453 $ 17,324,621 $ 22,200,116
Depreciation (8,009,239) (8,088,850) (4,998,453) (8,381,057) (15,333,413) (10,061,859)
-----------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation
(depreciation) of investments $ 3,353,752 $ 594,406 $ 2,248,911 $ 1,211,396 $ 1,991,208 $ 12,138,257
=======================================================================================================================
The tax components of undistributed net tax-exempt income, net ordinary income
and net long-term capital gains at August 31, 2008, the Funds' tax year end,
were as follows:
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
CALIFORNIA PERFORMANCE CALIFORNIA INVESTMENT SELECT QUALITY
VALUE PLUS OPPORTUNITY QUALITY QUALITY INCOME
(NCA) (NCP) (NCO) (NQC) (NVC) (NUC)
-----------------------------------------------------------------------------------------------------------------------
Undistributed net
tax-exempt income * $1,344,414 $1,134,840 $688,765 $1,148,424 $1,940,099 $1,504,071
Undistributed net
ordinary income ** 1,471,194 -- 136,923 478,368 3,217,971 2,037,884
Undistributed net
long-term capital gains 1,791,287 1,538,882 382,913 2,977,268 2,375,591 3,042,945
=======================================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on August 1, 2008, paid on September 2, 2008.
** 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 Funds' tax years ended August
31, 2008 and August 31, 2007, was designated for purposes of the dividends paid
deduction as follows:
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
CALIFORNIA PERFORMANCE CALIFORNIA INVESTMENT SELECT QUALITY
VALUE PLUS OPPORTUNITY QUALITY QUALITY INCOME
2008 (NCA) (NCP) (NCO) (NQC) (NVC) (NUC)
------------------------------------------------------------------------------------------------------------------
Distributions from net
tax-exempt income*** $11,056,779 $12,093,815 $7,788,970 $13,039,199 $22,149,317 $22,202,204
Distributions from net
ordinary income ** -- 120,294 156,931 564,093 -- 44,856
Distributions from net
long-term capital gains**** 451,828 1,312,267 823,197 -- 1,522,635 --
==================================================================================================================
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
CALIFORNIA PERFORMANCE CALIFORNIA INVESTMENT SELECT QUALITY
VALUE PLUS OPPORTUNITY QUALITY QUALITY INCOME
2007 (NCA) (NCP) (NCO) (NQC) (NVC) (NUC)
------------------------------------------------------------------------------------------------------------------
Distributions from net
tax-exempt income $11,560,751 $12,586,202 $8,568,752 $13,020,096 $23,676,926 $22,977,178
Distributions from net
ordinary income ** 1,772 81,182 237,458 82,870 118,707 76,734
Distributions from net
long-term capital gains 712,571 813,872 -- 1,072,501 1,353,123 767,720
==================================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
*** The Funds hereby designate these amounts paid during the fiscal year ended
August 31, 2008, as Exempt Interest Dividends.
**** The Funds designated as a long-term capital gain dividend, pursuant to the
Internal Revenue Code Section 852(b)(3), the amount necessary to reduce
earnings and profits of the Funds related to net capital gain to zero for
the tax year ended August 31, 2008.
68
5. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Each Fund's management fee is separated into two components - a complex-level
component, based on the aggregate amount of all fund assets managed by Nuveen
Asset Management (the "Adviser"), a wholly owned subsidiary of Nuveen, and a
specific fund-level component, based only on the amount of assets within each
individual Fund, and for California Value (NCA) a gross interest income
component. This pricing structure enables Nuveen fund shareholders to benefit
from growth in the assets within each individual fund as well as from growth in
the amount of complex-wide assets managed by the Adviser.
California Value (NCA) pays an annual fund-level fee, payable monthly, of .15%
of the average daily net assets of the Fund, as well as 4.125% of the gross
interest income (excluding interest on bonds underlying a "self-deposited
inverse floater" trust that is attributed to the Fund over and above the net
interest earned on the inverse floater itself) of the Fund.
The annual fund-level fee, payable monthly, for each Fund (excluding California
Value (NCA)) is based upon the average daily net assets (including net assets
attributable to Preferred shares) of each Fund as follows:
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE
-----------------------------------------------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For the next $3 billion .3875
For net assets over $5 billion .3750
=======================================================================================================================
The annual complex-level fee, payable monthly, which is additive to the
fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the
aggregate amount of total fund assets managed as stated in the table below. As
of August 31, 2008, the complex level fee rate was .1867%.
The complex-level fee schedule is as follows:
COMPLEX-LEVEL ASSET BREAKPOINT LEVEL (1) EFFECTIVE RATE AT BREAKPOINT LEVEL
-----------------------------------------------------------------------------------------------------------------------
$55 billion .2000%
$56 billion .1996
$57 billion .1989
$60 billion .1961
$63 billion .1931
$66 billion .1900
$71 billion .1851
$76 billion .1806
$80 billion .1773
$91 billion .1691
$125 billion .1599
$200 billion .1505
$250 billion .1469
$300 billion .1445
=======================================================================================================================
(1) The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate daily net assets of all
Nuveen-sponsored funds in the United States, with such daily net assets to
include assets attributable to preferred stock issued by or borrowings by
such funds but to exclude assets attributable to investments in other
Nuveen-sponsored funds.
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Directors who are affiliated with the
Adviser or to its Officers, all of whom receive remuneration for their services
to the Funds from the Adviser or its affiliates. The Board of Directors has
adopted a deferred compensation plan for independent Directors that enables
Directors to elect to defer receipt of all or a portion of the annual
compensation they are entitled to receive from certain Nuveen advised funds.
Under the plan, deferred amounts are treated as though equal dollar amounts had
been invested in shares of select Nuveen advised funds.
69
Notes to
FINANCIAL STATEMENTS (continued)
Agreement and Plan of Merger
On June 20, 2007, Nuveen announced that it had entered into a definitive
Agreement and Plan of Merger ("Merger Agreement") with Windy City Investments,
Inc. ("Windy City"), a corporation formed by investors led by Madison Dearborn
Partners, LLC ("Madison Dearborn"), pursuant to which Windy City would acquire
Nuveen. Madison Dearborn is a private equity investment firm based in Chicago,
Illinois. The merger was consummated on November 13, 2007.
The consummation of the merger was deemed to be an "assignment" (as that term is
defined in the Investment Company Act of 1940) of the investment management
agreement between each Fund and the Adviser, and resulted in the automatic
termination of each Fund's agreement. The Board of Directors of each Fund
considered and approved a new investment management agreement with the Adviser
on the same terms as the previous agreements. Each new ongoing agreement, was
approved by the shareholders of each Fund and took effect on November 13, 2007.
The investors led by Madison Dearborn include an affiliate of Merrill Lynch. As
a result, Merrill Lynch is an indirect "affiliated person" (as that term is
defined in the Investment Company Act of 1940) of each Fund. Certain conflicts
of interest may arise as a result of such indirect affiliation. For example, the
Funds are generally prohibited from entering into principal transactions with
Merrill Lynch and its affiliates. The Adviser does not believe that any such
prohibitions or limitations as a result of Merrill Lynch's affiliation will
significantly impact the ability of the Funds to pursue their investment
objectives and policies.
6. NEW ACCOUNTING PRONOUNCEMENTS
Financial Accounting Standards Board Statement of Financial Accounting
Standards No. 157
In September 2006, the FASB issued SFAS No. 157, "Fair Value Measurements." This
standard establishes a single authoritative definition of fair value, sets out a
framework for measuring fair value and requires additional disclosures about
fair value measurements. SFAS No. 157 applies to fair value measurements already
required or permitted by existing standards. SFAS No. 157 is effective for
financial statements issued for fiscal years beginning after November 15, 2007,
and interim periods within those fiscal years. The changes to current generally
accepted accounting principles from the application of this standard relate to
the definition of fair value, the methods used to measure fair value, and the
expanded disclosures about fair value measurements. As of August 31, 2008,
management does not believe the adoption of SFAS No. 157 will impact the
financial statement amounts; however, additional disclosures may be required
about the inputs used to develop the measurements and the effect of certain of
the measurements included within the Statement of Operations for the period.
Financial Accounting Standards Board Statement of Financial Accounting
Standards No. 161
In March 2008, the FASB issued SFAS No. 161, "Disclosures about Derivative
Instruments and Hedging Activities." This standard is intended to enhance
financial statement disclosures for derivative instruments and hedging
activities and enable investors to understand: a) how and why a fund uses
derivative instruments, b) how derivative instruments and related hedge items
are accounted for, and c) how derivative instruments and related hedge items
affect a fund's financial position, results of operations and cash flows. SFAS
No. 161 is effective for financial statements issued for fiscal years and
interim periods beginning after November 15, 2008. As of August 31, 2008,
management does not believe the adoption of SFAS No. 161 will impact the
financial statement amounts; however, additional footnote disclosures may be
required about the use of derivative instruments and hedging items.
70
7. SUBSEQUENT EVENTS
Distributions to Common Shareholders
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on October 1, 2008, to shareholders of record
on September 15, 2008, as follows:
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
CALIFORNIA PERFORMANCE CALIFORNIA INVESTMENT SELECT QUALITY
VALUE PLUS OPPORTUNITY QUALITY QUALITY INCOME
(NCA) (NCP) (NCO) (NQC) (NVC) (NUC)
------------------------------------------------------------------------------------------------------------------
Dividend per share $.0380 $.0580 $.0585 $.0605 $.0605 $.0615
==================================================================================================================
71
Financial
HIGHLIGHTS
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
------------------------------------------------------------------- -------------------------------
Distributions Distributions
from Net from Net
Beginning Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
=================================================================================================================================
CALIFORNIA VALUE (NCA)
---------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2008 $ 9.87 $ .47 $ (.18) N/A N/A $ .29 $(.44) $(.02) $ (.46)
2007 10.14 .45 (.23) N/A N/A .22 (.46) (.03) (.49)
2006 10.33 .46 (.13) N/A N/A .33 (.46) (.06) (.52)
2005 10.20 .47 .21 N/A N/A .68 (.47) (.08) (.55)
2004 9.93 .48 .34 N/A N/A .82 (.48) (.07) (.55)
CALIFORNIA PERFORMANCE PLUS (NCP)
---------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2008 14.77 .98 (.52) (.25) (.03) .18 (.69) (.07) (.76)
2007 15.45 .96 (.60) (.26) (.02) .08 (.71) (.05) (.76)
2006 15.79 .96 (.29) (.23) -- .44 (.78) -- (.78)
2005 15.53 .97 .49 (.12) (.01) 1.33 (.90) (.17) (1.07)
2004 14.76 .99 .80 (.06) -- 1.73 (.96) -- (.96)
=================================================================================================================================
Total Returns
--------------------
Based
Ending on
Common Based Common
Share Ending on Share Net
Net Asset Market Market Asset
Value Value Value* Value*
===============================================================
CALIFORNIA VALUE (NCA)
---------------------------------------------------------------
Year Ended 8/31:
2008 $ 9.70 $ 9.63 4.70% 2.94%
2007 9.87 9.65 4.74 2.11
2006 10.14 9.67 2.85 3.34
2005 10.33 9.92 13.33 6.82
2004 10.20 9.27 8.02 8.40
CALIFORNIA PERFORMANCE PLUS (NCP)
---------------------------------------------------------------
Year Ended 8/31:
2008 14.19 12.70 (4.41) 1.23
2007 14.77 14.07 3.21 .49
2006 15.45 14.36 4.42 2.97
2005 15.79 14.52 9.66 8.89
2004 15.53 14.26 9.65 12.00
===============================================================
Ratios/Supplemental Data
---------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets Ratios to Average Net Assets
Applicable to Common Shares Applicable to Common Shares
Before Credit After Credit**
----------------------------------------- -----------------------------------------
Ending
Net
Assets
Applicable Expenses Expenses Net Expenses Expenses Net Portfolio
to Common Including Excluding Investment Including Excluding Investment Turnover
Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate
================================================================================================================================
CALIFORNIA VALUE (NCA)
--------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2008 $244,985 .69% .65% 4.71% .69% .64% 4.72% 22%
2007 249,022 .65 .62 4.49 .64 .61 4.51 8
2006 255,868 .64 .64 4.51 .63 .63 4.52 20
2005 260,782 .63 .63 4.54 .63 .63 4.54 4
2004 257,550 .65 .65 4.70 .65 .65 4.70 28
CALIFORNIA PERFORMANCE PLUS (NCP)
--------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2008 183,943 1.33 1.26 6.73 1.32 1.25 6.74 11
2007 191,466 1.30 1.22 6.28 1.28 1.20 6.30 18
2006 200,359 1.23 1.23 6.28 1.22 1.22 6.29 11
2005 204,692 1.23 1.23 6.22 1.22 1.22 6.23 5
2004 201,307 1.26 1.26 6.48 1.25 1.25 6.49 16
================================================================================================================================
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:
2008 $ N/A $ N/A $ N/A
2007 N/A N/A N/A
2006 N/A N/A N/A
2005 N/A N/A N/A
2004 N/A N/A N/A
CALIFORNIA PERFORMANCE PLUS (NCP)
----------------------------------------------------
Year Ended 8/31:
2008 105,075 25,000 68,765
2007 106,000 25,000 70,157
2006 106,000 25,000 72,255
2005 106,000 25,000 73,276
2004 106,000 25,000 72,478
====================================================
N/A Fund is not authorized to issue Preferred shares.
* Total Return Based on Market Value is the combination of changes in the
market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return Based on Common Share Net Asset Value is the combination of
changes in Common share net asset value, reinvested dividend income at net
asset value and reinvested capital gains distributions at net asset value,
if any. The last dividend declared in the period, which is typically paid
on the first business day of the following month, is assumed to be
reinvested at the ending net asset value. The actual reinvest price for the
last dividend declared in the period may often be based on the Fund's
market price (and not its net asset value), and therefore may be different
from the price used in the calculation. Total returns are not annualized.
** After custodian fee credit, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
See accompanying notes to financial statements.
72-73 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 Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
=================================================================================================================================
CALIFORNIA OPPORTUNITY (NCO)
---------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2008 $14.90 $1.01 $ (.52) $(.26) $(.03) $ .20 $(.71) $(.07) $ (.78)
2007 15.67 .99 (.68) (.28) -- .03 (.80) -- (.80)
2006 16.14 1.00 (.41) (.22) -- .37 (.84) -- (.84)
2005 15.67 1.02 .50 (.12) -- 1.40 (.93) -- (.93)
2004 14.77 1.03 .88 (.06) -- 1.85 (.95) -- (.95)
CALIFORNIA INVESTMENT QUALITY (NQC)
---------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2008 14.81 1.00 (.47) (.27) --* .26 (.72) (.01) (.73)
2007 15.48 .97 (.59) (.26) (.02) .10 (.70) (.07) (.77)
2006 15.86 .96 (.24) (.23) (.01) .48 (.80) (.06) (.86)
2005 15.65 .98 .40 (.13) (.01) 1.24 (.92) (.11) (1.03)
2004 15.09 1.00 .70 (.06) (.01) 1.63 (.97) (.10) (1.07)
=================================================================================================================================
Total Returns
--------------------
Based
Ending on
Common Based Common
Share Ending on Share Net
Net Asset Market Market Asset
Value Value Value** Value**
================================================================
CALIFORNIA OPPORTUNITY (NCO)
----------------------------------------------------------------
Year Ended 8/31:
2008 $14.32 $12.85 (5.15)% 1.35%
2007 14.90 14.36 (1.62) .07
2006 15.67 15.36 4.02 2.47
2005 16.14 15.61 15.00 9.19
2004 15.67 14.45 10.63 12.86
CALIFORNIA INVESTMENT QUALITY (NQC)
----------------------------------------------------------------
Year Ended 8/31:
2008 14.34 13.08 .53 1.78
2007 14.81 13.74 (1.03) .57
2006 15.48 14.63 2.73 3.21
2005 15.86 15.10 9.33 8.18
2004 15.65 14.80 8.94 11.11
================================================================
Ratios/Supplemental Data
---------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets Ratios to Average Net Assets
Applicable to Common Shares Applicable to Common Shares
Before Credit After Credit***
----------------------------------------- -----------------------------------------
Ending
Net
Assets
Applicable Expenses Expenses Net Expenses Expenses Net Portfolio
to Common Including Excluding Investment Including Excluding Investment Turnover
Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate
==================================================================================================================================
CALIFORNIA OPPORTUNITY (NCO)
----------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2008 $116,964 1.36% 1.28% 6.84% 1.35% 1.27% 6.85% 8%
2007 121,728 1.31 1.26 6.37 1.29 1.24 6.39 10
2006 127,792 1.26 1.26 6.43 1.24 1.24 6.45 18
2005 131,587 1.25 1.25 6.42 1.25 1.25 6.43 7
2004 127,743 1.28 1.28 6.72 1.28 1.28 6.73 13
CALIFORNIA INVESTMENT QUALITY (NQC)
----------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2008 194,772 1.39 1.24 6.77 1.38 1.24 6.78 15
2007 201,067 1.34 1.22 6.32 1.32 1.20 6.33 12
2006 210,242 1.22 1.22 6.28 1.21 1.21 6.29 11
2005 215,446 1.21 1.21 6.24 1.20 1.20 6.25 5
2004 212,509 1.22 1.22 6.48 1.22 1.22 6.49 20
==================================================================================================================================
Preferred Shares at End of Period
--------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
====================================================
CALIFORNIA OPPORTUNITY (NCO)
----------------------------------------------------
Year Ended 8/31:
2008 $68,000 $25,000 $68,002
2007 68,000 25,000 69,753
2006 68,000 25,000 71,982
2005 68,000 25,000 73,377
2004 68,000 25,000 71,964
CALIFORNIA INVESTMENT QUALITY (NQC)
----------------------------------------------------
Year Ended 8/31:
2008 108,650 25,000 69,816
2007 112,000 25,000 69,881
2006 112,000 25,000 71,929
2005 112,000 25,000 73,091
2004 112,000 25,000 72,435
====================================================
* Rounds to less than $.01 per share.
** Total Return Based on Market Value is the combination of changes in the
market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return Based on Common Share Net Asset Value is the combination of
changes in Common share net asset value, reinvested dividend income at net
asset value and reinvested capital gains distributions at net asset value,
if any. The last dividend declared in the period, which is typically paid
on the first business day of the following month, is assumed to be
reinvested at the ending net asset value. The actual reinvest price for the
last dividend declared in the period may often be based on the Fund's
market price (and not its net asset value), and therefore may be different
from the price used in the calculation. Total returns are not annualized.
*** After custodian fee credit, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
See accompanying notes to financial statements.
74-75 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 Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
=================================================================================================================================
CALIFORNIA SELECT QUALITY (NVC)
---------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2008 $14.75 $1.01 $(.42) $(.26) $(.02) $ .31 $ (.70) $(.05) $ (.75)
2007 15.49 .98 (.64) (.27) (.01) .06 (.75) (.05) (.80)
2006 15.98 .99 (.27) (.22) (.02) .48 (.85) (.12) (.97)
2005 15.63 1.02 .53 (.13) (.01) 1.41 (.96) (.10) (1.06)
2004 14.93 1.04 .77 (.06) (.01) 1.74 (.97) (.07) (1.04)
CALIFORNIA QUALITY INCOME (NUC)
---------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2008 14.93 1.04 (.23) (.29) -- .52 (.72) -- (.72)
2007 15.60 1.01 (.59) (.28) (.01) .13 (.77) (.03) (.80)
2006 16.03 1.02 (.35) (.23) -- .44 (.84) (.03) (.87)
2005 15.49 1.04 .69 (.13) (.01) 1.59 (.97) (.08) (1.05)
2004 14.85 1.05 .73 (.07) -- 1.71 (1.02) (.05) (1.07)
=================================================================================================================================
Total Returns
--------------------
Based
Ending on
Common Based Common
Share Ending on Share Net
Net Asset Market Market Asset
Value Value Value* Value*
===============================================================
CALIFORNIA SELECT QUALITY (NVC)
---------------------------------------------------------------
Year Ended 8/31:
2008 $14.31 $12.88 (2.52)% 2.07%
2007 14.75 13.97 (3.40) .29
2006 15.49 15.25 3.63 3.21
2005 15.98 15.69 13.70 9.33
2004 15.63 14.81 12.38 11.97
CALIFORNIA QUALITY INCOME (NUC)
---------------------------------------------------------------
Year Ended 8/31:
2008 14.73 13.08 (2.12) 3.51
2007 14.93 14.08 (2.92) .74
2006 15.60 15.28 2.90 2.96
2005 16.03 15.73 12.30 10.57
2004 15.49 15.00 9.67 11.76
===============================================================
Ratios/Supplemental Data
---------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets Ratios to Average Net Assets
Applicable to Common Shares Applicable to Common Shares
Before Credit After Credit**
----------------------------------------- -----------------------------------------
Ending
Net
Assets
Applicable Expenses Expenses Net Expenses Expenses Net Portfolio
to Common Including Excluding Investment Including Excluding Investment Turnover
Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate
==================================================================================================================================
CALIFORNIA SELECT QUALITY (NVC)
----------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2008 $330,915 1.32% 1.22% 6.90% 1.31% 1.21% 6.91% 13%
2007 341,102 1.28 1.19 6.36 1.26 1.17 6.37 16
2006 358,131 1.20 1.20 6.38 1.19 1.19 6.39 16
2005 369,087 1.19 1.19 6.44 1.18 1.18 6.44 8
2004 360,938 1.21 1.21 6.78 1.20 1.20 6.78 14
CALIFORNIA QUALITY INCOME (NUC)
----------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2008 324,354 1.33 1.23 6.93 1.32 1.22 6.94 10
2007 328,756 1.28 1.20 6.51 1.27 1.18 6.53 16
2006 343,096 1.21 1.21 6.54 1.20 1.20 6.55 12
2005 352,752 1.20 1.20 6.62 1.20 1.20 6.63 6
2004 340,873 1.22 1.22 6.89 1.21 1.21 6.89 16
==================================================================================================================================
Preferred Shares at End of Period
--------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
====================================================
CALIFORNIA SELECT QUALITY (NVC)
----------------------------------------------------
Year Ended 8/31:
2008 $176,375 $25,000 $71,905
2007 192,000 25,000 69,414
2006 192,000 25,000 71,632
2005 192,000 25,000 73,058
2004 192,000 25,000 71,997
CALIFORNIA QUALITY INCOME (NUC)
----------------------------------------------------
Year Ended 8/31:
2008 176,900 25,000 70,839
2007 185,000 25,000 69,427
2006 185,000 25,000 71,364
2005 185,000 25,000 72,669
2004 185,000 25,000 71,064
====================================================
* Total Return Based on Market Value is the combination of changes in the
market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return Based on Common Share Net Asset Value is the combination of
changes in Common share net asset value, reinvested dividend income at net
asset value and reinvested capital gains distributions at net asset value,
if any. The last dividend declared in the period, which is typically paid
on the first business day of the following month, is assumed to be
reinvested at the ending net asset value. The actual reinvest price for the
last dividend declared in the period may often be based on the Fund's
market price (and not its net asset value), and therefore may be different
from the price used in the calculation. Total returns are not annualized.
** After custodian fee credit, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
See accompanying notes to financial statements.
76-77 spread
Board Members & Officers
The management of the Funds, including general supervision of the duties
performed for the Funds by the Adviser, is the responsibility of the Board
Members of the Funds. The number of board members of the Fund is currently set
at nine. None of the board members who are not "interested" persons of the Funds
(referred to herein as "independent board members") has ever been a director or
employee of, or consultant to, Nuveen or its affiliates. The names and business
addresses of the board members and officers of the Funds, their principal
occupations and other affiliations during the past five years, the number of
portfolios each oversees and other directorships they hold are set forth below.
NAME, POSITION(S) HELD YEAR FIRST NUMBER PRINCIPAL
BIRTHDATE WITH THE FUNDS ELECTED OR OF PORTFOLIOS OCCUPATION(S)
& ADDRESS APPOINTED IN FUND COMPLEX INCLUDING OTHER
AND TERM(1) OVERSEEN BY DIRECTORSHIPS
BOARD MEMBER DURING PAST 5 YEARS
INDEPENDENT BOARD MEMBERS:
[] ROBERT P. BREMNER Private Investor and Management Consultant.
8/22/40 Chairman of
333 W. Wacker Drive the Board 1997 186
Chicago, IL 60606 and Board member
[] JACK B. EVANS President, The Hall-Perrine Foundation, a
10/22/48 private philanthropic corporation (since
333 W. Wacker Drive Board member 1999 186 1996); Director and Vice Chairman, United
Chicago, IL 60606 Fire Group, a publicly held company; Member
of the Board of Regents for the State of
Iowa University System; Director, Gazette
Companies; Life Trustee of Coe College and
Iowa College Foundation; Member of the
Advisory Council of the Department of
Finance in the Tippie College of Business,
University of Iowa; formerly, Director,
Alliant Energy; formerly, Director, Federal
Reserve Bank of Chicago; formerly, President
and Chief Operating Officer, SCI Financial
Group, Inc., a regional financial services
firm.
[] WILLIAM C. HUNTER Dean, Tippie College of Business, University
3/6/48 of Iowa (since July 2006); formerly, Dean
333 W. Wacker Drive Board member 2004 186 and Distinguished Professor of Finance,
Chicago, IL 60606 School of Business at the University of
Connecticut (2003-2006); previously, Senior
Vice President and Director of Research at
the Federal Reserve Bank of Chicago
(1995-2003); Director (since 1997), Credit
Research Center at Georgetown University;
Director (since 2004) of Xerox Corporation;
Director (since 2005), Beta Gamma Sigma
International Honor Society; Director, SS&C
Technologies, Inc. (May 2005-October 2005).
[] DAVID J. KUNDERT Director, Northwestern Mutual Wealth
10/28/42 Management Company; Retired (since 2004) as
333 W. Wacker Drive Board member 2005 186 Chairman, JPMorgan Fleming Asset Management,
Chicago, IL 60606 President and CEO, Banc One Investment
Advisors Corporation, and President, One
Group Mutual Funds; prior thereto, Executive
Vice President, Banc One Corporation and
Chairman and CEO, Banc One Investment
Management Group; Member, Board of Regents,
Luther College; member of the Wisconsin Bar
Association; member of Board of Directors,
Friends of Boerner Botanical Gardens; member
of Investment Committee, Greater Milwaukee
Foundation.
[] WILLIAM J. SCHNEIDER Chairman, formerly, Senior Partner and Chief
9/24/44 Operating Officer (retired, 2004) of
333 W. Wacker Drive Board member 1997 186 Miller-Valentine Partners Ltd., a real
Chicago, IL 60606 estate investment company; Director, Dayton
Development Coalition; formerly, member,
Business Advisory Council, Cleveland Federal
Reserve Bank.
78
NAME, POSITION(S) HELD YEAR FIRST NUMBER PRINCIPAL
BIRTHDATE WITH THE FUNDS ELECTED OR OF PORTFOLIOS OCCUPATION(S)
& ADDRESS APPOINTED IN FUND COMPLEX INCLUDING OTHER
AND TERM(1) OVERSEEN BY DIRECTORSHIPS
BOARD MEMBER DURING PAST 5 YEARS
INDEPENDENT BOARD MEMBERS:
[] JUDITH M. STOCKDALE Executive Director, Gaylord and Dorothy
12/29/47 Donnelley Foundation (since 1994); prior
333 W. Wacker Drive Board member 1997 186 thereto, Executive Director, Great Lakes
Chicago, IL 60606 Protection Fund (from 1990 to 1994).
[] CAROLE E. STONE Director, Chicago Board Options Exchange
6/28/47 (since 2006); Commissioner, New York State
333 W. Wacker Drive Board member 2007 186 Commission on Public Authority Reform (since
Chicago, IL 60606 2005); formerly, Chair New York Racing
Association Oversight Board (2005-2007);
formerly, Director, New York State Division
of the Budget (2000-2004), Chair, Public
Authorities Control Board (2000-2004) and
Director, Local Government Assistance
Corporation (2000-2004).
[] TERENCE J. TOTH(2)
9/29/59 Private Investor (since 2007); CEO and
333 W. Wacker Drive Board Member 2008 186 President, Northern Trust Investments
Chicago, IL 60606 (2004-2007); Executive Vice President,
Quantitative Management & Securities Lending
(2007-2004); prior thereto, various
positions with Northern Trust Company (since
1994); Member: Goodman Theatre Board (Since
2004); Chicago Fellowship Boards (since
2005), University of Illinois Leadership
Council Board (since 2007) and Catalyst
Schools of Chicago Board (since 2008);
formerly Member: Northern Trust Mutual Funds
Board (2005-2007), Northern Trust Japan
Board (2004-2007), Northern Trust Securities
Inc. Board (2003-2007) and Northern Trust
Hong Kong Board (1997-2004).
INTERESTED BOARD MEMBER:
[] JOHN P. AMBOIAN(2)(3) Chief Executive Officer (since July 2007)
6/14/61 and Director (since 1999) of Nuveen
333 W. Wacker Drive Board Member 2008 186 Investments, Inc.; Chief Executive Officer
Chicago, IL 60606 (since 2007) of Nuveen Asset Management,
Rittenhouse Asset Management, Nuveen
Investments Advisors, Inc. formerly,
President (1999-2004) of Nuveen Advisory
Corp. and Nuveen Institutional Advisory
Corp.(4)
OFFICERS OF THE FUND:
[] GIFFORD R. ZIMMERMAN Managing Director (since 2002), Assistant
9/9/56 Chief Secretary and Associate General Counsel,
333 W. Wacker Drive Administrative 1988 186 formerly, Vice President and Assistant
Chicago, IL 60606 Officer General Counsel, of Nuveen Investments, LLC;
Managing Director (since 2002), Associate
General Counsel and Assistant Secretary, of
Nuveen Asset Management; Vice President and
Assistant Secretary of NWQ Investment
Management Company, LLC. (since 2002),
Nuveen Investments Advisers Inc. (since
2002), Symphony Asset Management LLC, and
NWQ Investment Management Company, LLC
(since 2003), Tradewinds Global Investors,
LLC, and Santa Barbara Asset Management, LLC
(since 2006), Nuveen HydePark Group LLC and
Richards & Tierney, Inc. (since 2007);
Managing Director, Associate General Counsel
and Assistant Secretary of Rittenhouse Asset
Management, Inc. (since 2003); Managing
Director (since 2004) and Assistant
Secretary (since 1994) of Nuveen
Investments, Inc.; formerly, Managing
Director (2002-2004), General Counsel
(1998-2004) and Assistant Secretary of
Nuveen Advisory Corp. and Nuveen
Institutional Advisory Corp.(4); Chartered
Financial Analyst.
[] WILLIAM ADAMS IV Executive Vice President of Nuveen
6/9/55 Investments, Inc.; Executive Vice President,
333 W. Wacker Drive Vice President 2007 120 U.S. Structured Products of Nuveen
Chicago, IL 60606 Investments, LLC, (since 1999), prior
thereto, Managing Director of Structured
Investments.
79
NAME, POSITION(S) HELD YEAR FIRST NUMBER PRINCIPAL
BIRTHDATE WITH THE FUNDS ELECTED OR OF PORTFOLIOS OCCUPATION(S)
AND ADDRESS APPOINTED(5) IN FUND COMPLEX DURING PAST 5 YEARS
OVERSEEN
BY OFFICER
OFFICERS OF THE FUND:
[] CEDRIC H. ANTOSIEWICZ Managing Director, (since 2004) previously,
1/11/62 Vice President (1993-2004) of Nuveen
333 W. Wacker Drive Vice President 2007 120 Investments, LLC.
Chicago, IL 60606
[] MICHAEL T. ATKINSON Vice President (since 2002) of Nuveen
2/3/66 Vice President Investments, LLC.
333 W. Wacker Drive and Assistant 2000 186
Chicago, IL 60606 Secretary
[] LORNA C. FERGUSON Managing Director (since 2004), formerly,
10/24/45 Vice President of Nuveen Investments, LLC,
333 W. Wacker Drive Vice President 1998 186 Managing Director (2004) formerly, Vice
Chicago, IL 60606 President (1998-2004) of Nuveen Advisory
Corp. and Nuveen Institutional Advisory
Corp.(4); Managing Director (since 2005) of
Nuveen Asset Management.
[] STEPHEN D. FOY Vice President (since 1993) and Funds
5/31/54 Vice President Controller (since 1998) of Nuveen
333 W. Wacker Drive and Controller 1998 186 Investments, LLC; formerly, Vice President
Chicago, IL 60606 and Funds Controller (1998-2004) of Nuveen
Investments, Inc.; Certified Public
Accountant.
[] WALTER M. KELLY Senior Vice President (since 2008), Vice
2/24/70 Chief Compliance President (2006-2008) formerly, Assistant
333 W. Wacker Drive Officer and 2003 186 Vice President and Assistant General Counsel
Chicago, IL 60606 Vice President (2003-2006) of Nuveen Investments, LLC; Vice
President (since 2006) and Assistant
Secretary (since 2008) of Nuveen Asset
Management.
[] DAVID J. LAMB Vice President (since 2000) of Nuveen
3/22/63 Investments, LLC; Certified Public
333 W. Wacker Drive Vice President 2000 186 Accountant.
Chicago, IL 60606
[] TINA M. LAZAR Vice President of Nuveen Investments, LLC
8/27/61 (since 1999).
333 W. Wacker Drive Vice President 2002 186
Chicago, IL 60606
[] LARRY W. MARTIN Vice President, Assistant Secretary and
7/27/51 Vice President Assistant General Counsel of Nuveen
333 W. Wacker Drive and Assistant 1988 186 Investments, LLC; Vice President (since
Chicago, IL 60606 Secretary 2005) and Assistant Secretary of Nuveen
Investments, Inc.; Vice President (since
2005) and Assistant Secretary (since 1997)
of Nuveen Asset Management; Vice President
(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); NWQ
Investment Management Company, LLC (since
2002), Symphony Asset Management LLC (since
2003), Tradewinds Global Investors, LLC,
Santa Barbara Asset Management LLC (since
2006) and of Nuveen HydePark Group, LLC and
Richards &Tierney, Inc. (since 2007);
formerly, Vice President and Assistant
Secretary of Nuveen Advisory Corp. and
Nuveen Institutional Advisory Corp.(4)
80
NAME, POSITION(S) HELD YEAR FIRST NUMBER PRINCIPAL
BIRTHDATE WITH THE FUNDS ELECTED OR OF PORTFOLIOS OCCUPATION(S)
AND ADDRESS APPOINTED(5) IN FUND COMPLEX DURING PAST 5 YEARS
OVERSEEN
BY OFFICER
OFFICERS OF THE FUND:
[] KEVIN J. MCCARTHY Managing Director (since 2008), formerly,
3/26/66 Vice President Vice President (2007-2008), Nuveen
333 W. Wacker Drive and Secretary 2007 186 Investments, LLC; Vice President, and
Chicago, IL 60606 Assistant Secretary, Nuveen Asset
Management, Rittenhouse Asset Management,
Inc., Nuveen Investment Advisers Inc.,
Nuveen Investment Institutional Services
Group LLC, NWQ Investment Management
Company, LLC, Tradewinds Global Investors
LLC, NWQ Holdings, LLC, Symphony Asset
Management LLC, Santa Barbara Asset
Management LLC, Nuveen HydePark Group, LLC
and Richards &Tierney, Inc. (since 2007);
prior thereto, Partner, Bell, Boyd & Lloyd
LLP (1997-2007).
[] JOHN V. MILLER Managing Director (since 2007), formerly,
4/10/67 Vice President Vice President (2002-2007) of Nuveen
333 W. Wacker Drive 2007 186 Investments, LLC; Chartered Financial
Chicago, IL 60606 Analyst.
[] CHRISTOPHER M. ROHRBACHER Vice President, Nuveen Investments, LLC
8/1/71 Vice President (since 2008); Vice President and Assistant
333 W. Wacker Drive and Assistant 2008 186 Secretary, Nuveen Asset Management (since
Chicago, IL 60606 Secretary 2008); prior thereto, Associate, Skadden,
Arps, Slate Meagher & Flom LLP (2002-2008).
[] JAMES F. RUANE Vice President, Nuveen Investments, LLC
7/3/62 Vice President (since 2007); prior thereto, Partner,
333 W. Wacker Drive and Assistant 2007 186 Deloitte & Touche USA LLP (since 2005),
Chicago, IL 60606 Secretary formerly, senior tax manager (since 2002);
Certified Public Accountant.
[] MARK L. WINGET Vice President, Nuveen Investments, LLC
12/21/68 Vice President (since 2008); Vice President and Assistant
333 W. Wacker Drive and Assistant 2008 186 Secretary, Nuveen Asset Management (since
Chicago, IL 60606 Secretary 2008); prior thereto, Counsel, Vedder Price
P.C. (1997-2007).
(1) Board Members serve a one year term to serve until the next annual meeting
or until their successors shall have been duly elected and qualified. The
first year elected or appointed represents the year in which the board
member was first elected or appointed to any fund in the Nuveen Complex.
(2) Mr. Amboian and Mr. Toth were appointed to the Board of Trustees of certain
Nuveen Funds, effective July 1, 2008, and were subsequently elected to the
Boards of the remaining Nuveen Funds on July 28, 2008. In connection with
the appointment of Mr. Amboian as trustee, Timothy R. Schwertfeger, an
interested trustee, resigned from the Board of Trustees, effective July 1,
2008.
(3) Mr. Amboian is an interested trustee because of his position with Nuveen
Investments, Inc. and certain of its subsidiaries, which are affiliates of
the Nuveen Funds.
(4) Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp. were
reorganized into Nuveen Asset Management, effective January 1, 2005.
(5) 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.
81
Annual Investment
Management Agreement
APPROVAL PROCESS
The Investment Company Act of 1940, as amended (the "1940 Act"), provides, in
substance, that each investment advisory agreement between a fund and its
investment adviser will continue in effect from year to year only if its
continuance is approved at least annually by the fund's board members, including
by a vote of a majority of the board members who are not parties to the advisory
agreement or "interested persons" of any parties (the "Independent Board
Members"), cast in person at a meeting called for the purpose of considering
such approval. In connection with such approvals, the fund's board members must
request and evaluate, and the investment adviser is required to furnish, such
information as may be reasonably necessary to evaluate the terms of the advisory
agreement. Accordingly, at a meeting held on May 28-29, 2008 (the "May
Meeting"), the Boards of Trustees or Directors (as the case may be)(each, a
"Board" and each Trustee or Director, a "Board Member") of the Funds, including
a majority of the Independent Board Members, considered and approved the
continuation of the advisory agreement (each, an "Advisory Agreement") between
each Fund and Nuveen Asset Management ("NAM") for an additional one-year period.
In preparation for their considerations at the May Meeting, the Board also held
a separate meeting on April 23, 2008 (the "April Meeting"). Accordingly, the
factors considered and determinations made regarding the renewals by the
Independent Board Members include those made at the April Meeting.
In addition, in evaluating the Advisory Agreements, as described in further
detail below, the Independent Board Members reviewed a broad range of
information relating to the Funds and NAM, including absolute performance, fee
and expense information for the Funds as well as comparative performance, fee
and expense information for a comparable peer group of funds, the performance
information of recognized benchmarks (as applicable), the profitability of
Nuveen for its advisory activities (which includes its wholly owned
subsidiaries), and other information regarding the organization, personnel, and
services provided by NAM. The Independent Board Members also met quarterly as
well as at other times as the need arose during the year and took into account
the information provided at such meetings and the knowledge gained therefrom.
Prior to approving the renewal of the Advisory Agreements, the Independent Board
Members reviewed the foregoing information with their independent legal counsel
and with management, reviewed materials from independent legal counsel
describing applicable law and their duties in reviewing advisory contracts, and
met with independent legal counsel in private sessions without management
present. The Independent Board Members considered the legal advice provided by
independent legal counsel and relied upon their knowledge of NAM, its services
and the Funds resulting from their meetings and other interactions throughout
the year and their own business judgment in determining the factors to be
considered in evaluating the Advisory Agreements. Each Board Member may have
accorded different weight to the various factors in reaching his or her
conclusions with respect to a Fund's Advisory Agreement. The Independent Board
Members did not identify any single factor as all-important or controlling. The
Independent Board Members' considerations were instead based on a comprehensive
consideration of all the information presented. The principal factors considered
by the Board and its conclusions are described below.
82
A. NATURE, EXTENT AND QUALITY OF SERVICES
In considering renewal of the Advisory Agreements, the Independent Board Members
considered the nature, extent and quality of NAM's services, including advisory
services and administrative services. The Independent Board Members reviewed
materials outlining, among other things, NAM's organization and business; the
types of services that NAM or its affiliates provide and are expected to provide
to the Funds; the performance record of the applicable Fund (as described in
further detail below); and any initiatives Nuveen had taken for the applicable
fund product line. With respect to personnel, the Independent Board Members
evaluated the background, experience and track record of NAM's investment
personnel. In this regard, the Independent Board Members considered the
additional investment in personnel to support Nuveen fund advisory activities,
including in operations, product management and marketing as well as related
fund support functions, including sales, executive, finance, human resources and
information technology. The Independent Board Members also reviewed information
regarding portfolio manager compensation arrangements to evaluate NAM's ability
to attract and retain high quality investment personnel.
In evaluating the services of NAM, the Independent Board Members also considered
NAM's ability to supervise the Funds' other service providers and given the
importance of compliance, NAM's compliance program. Among other things, the
Independent Board Members considered the report of the chief compliance officer
regarding the Funds' compliance policies and procedures.
In addition to advisory services, the Independent Board Members considered the
quality of administrative services provided by NAM and its affiliates including
product management, fund administration, oversight of service providers,
shareholder services, administration of Board relations, regulatory and
portfolio compliance and legal support.
In addition to the foregoing services, the Independent Board Members also noted
the additional services that NAM or its affiliates provide to closed-end funds,
including, in particular, its secondary market support activities and the costs
of such activities. The Independent Board Members recognized Nuveen's continued
commitment to supporting the secondary market for the common shares of its
closed-end funds through a variety of programs designed to raise investor and
analyst awareness and understanding of closed-end funds. These efforts include
maintaining an investor relations program to timely provide information and
education to financial advisers and investors; providing advertising and
marketing for the closed-end funds; maintaining its closed-end fund website; and
providing educational seminars. With respect to closed-end funds that utilize
leverage through the issuance of auction rate preferred securities ("ARPS"), the
Board has recognized the unprecedented market conditions in the auction rate
market industry with the failure of the auction process. The Independent Board
Members noted Nuveen's efforts and the resources and personnel employed to
analyze the situation, explore potential alternatives and develop and implement
solutions that serve the interests of the affected funds and all of their
respective shareholders. The Independent Board Members further noted Nuveen's
commitment and efforts to keep investors and financial advisers informed as to
its progress in addressing the ARPS situation through, among other things,
conference calls, press releases, and information posted on its website as well
as its refinancing activities. The Independent Board Members also noted Nuveen's
continued support for holders of preferred shares of its closed-end funds by,
among other things, seeking distribution for preferred shares with new market
participants, managing relations with remarketing agents and the broker
community, maintaining the leverage and risk management of leverage and
maintaining systems necessary to test compliance with rating agency criteria.
83
ANNUAL INVESTMENT MANAGEMENT AGREEMENT
APPROVAL PROCESS (continued)
Based on their review, the Independent Board Members found that, overall, the
nature, extent and quality of services provided (and expected to be provided) to
the respective Funds under the Advisory Agreements were satisfactory.
B. THE INVESTMENT PERFORMANCE OF THE FUNDS AND NAM
The Board considered the investment performance of each Fund, including the
Fund's historic performance as well as its performance compared to funds with
similar investment objectives (the "Performance Peer Group") based on data
provided by an independent third party (as described below). The Independent
Board Members also reviewed portfolio level performance (which does not reflect
fund level fees, expenses and leverage), as described in further detail below.
In evaluating the performance information, the Board considered whether the Fund
has operated within its investment objectives and parameters and the impact that
the investment mandates may have had on performance. In addition, in comparing a
Fund's performance with that of its Performance Peer Group, the Independent
Board Members took into account that the closest Performance Peer Group in
certain instances may not adequately reflect the respective fund's investment
objectives and strategies thereby hindering a meaningful comparison of the
fund's performance with that of the Performance Peer Group.
The Independent Board Members also recognized that certain funds lack comparable
peers in which case their performance is measured against a more general
municipal category for various states. The closed-end municipal funds that do
not have corresponding state-specific Performance Peer Groups are from states
other than New York, California, Florida, New Jersey, Michigan, and
Pennsylvania.
The Independent Board Members reviewed performance information including, among
other things, total return information compared with the Fund's Performance Peer
Group and recognized benchmarks for the one-, three- and five-year periods (as
applicable) ending December 31, 2007 and with the Performance Peer Group for the
quarter and same yearly periods ending March 31, 2008 (as applicable). The
Independent Board Members also reviewed the Fund's portfolio level performance
(which does not reflect fund level fees and expenses (and leverage for
closed-end funds)) compared to recognized benchmarks for the one- three, and
five-year periods ending December 31, 2007 (as applicable). The analysis was
used to assess the efficacy of investment decisions against appropriate measures
of risk and total return, within specific market segments. This information
supplemented the Fund performance information provided to the Board at each of
its quarterly meetings. Based on their review, the Independent Board Members
determined that each Fund's investment performance over time had been
satisfactory.
C. FEES, EXPENSES AND PROFITABILITY
1. FEES AND EXPENSES
The Board evaluated the management fees and expenses of each Fund
reviewing, among other things, such Fund's gross management fees (which
take into account breakpoints), net management fees (which take into
account fee waivers or reimbursements) and total expense ratios (before and
after expense reimbursements and/or waivers) in absolute terms as well as
compared to the gross management fees, net management fees (after waivers
and/or reimbursements) and total expense ratios (before and after waivers)
of a comparable universe of unaffiliated funds based on data provided by an
independent data provider (the "Peer Universe") and/or a more focused
subset of funds therein (the "Peer Group"). The
84
Independent Board Members further reviewed data regarding the construction
of Peer Groups as well as the methods of measurement for the fee and
expense analysis and the performance analysis. In reviewing the comparisons
of fee and expense information, the Independent Board Members took into
account that in certain instances various factors such as the size of the
Fund relative to peers, the size and particular composition of the Peer
Group, the investment objectives of the peers, expense anomalies, and the
timing of information used may impact the comparative data, thereby
limiting the ability to make a meaningful comparison. The Independent Board
Members also considered, among other things, the differences in the use of
leverage and the differences in the use of insurance as well as the states
reflected in a respective Peer Group for the state municipal funds (such as
the use of a general "other states" category for closed-end state funds
(other than New York and California)). In reviewing the fee schedule for a
Fund, the Independent Board Members also considered the fund-level and
complex-wide breakpoint schedules (described in further detail below) and
any fee waivers and reimbursements provided by Nuveen (applicable, in
particular, for certain closed-end funds launched since 1999). Based on
their review of the fee and expense information provided, the Independent
Board Members determined that each Fund's management fees and net total
expense ratio were reasonable in light of the nature, extent and quality of
services provided to the Fund.
2. COMPARISONS WITH THE FEES OF OTHER CLIENTS
The Independent Board Members further reviewed information regarding the
nature of services and fee rates offered by NAM to other clients. Such
other clients include NAM's municipal separately managed accounts. In
evaluating the comparisons of fees, the Independent Board Members noted
that the fee rates charged to the Funds and other clients vary, among other
things, because of the different services involved and the additional
regulatory and compliance requirements associated with registered
investment companies, such as the Funds. Accordingly, the Independent Board
Members considered the differences in the product types, including, but not
limited to, the services provided, the structure and operations, product
distribution and costs thereof, portfolio investment policies, investor
profiles, account sizes and regulatory requirements. The Independent Board
Members noted, in particular, that the range of services provided to the
Funds (as discussed above) is much more extensive than that provided to
separately managed accounts. Given the inherent differences in the
products, particularly the extensive services provided to the Funds, the
Independent Board Members believe such facts justify the different levels
of fees.
3. PROFITABILITY OF NUVEEN
In conjunction with its review of fees, the Independent Board Members also
considered the profitability of Nuveen for its advisory activities (which
incorporated Nuveen's wholly-owned affiliated sub-advisers) and its
financial condition. The Independent Board Members reviewed the revenues
and expenses of Nuveen's advisory activities for the last two years and the
allocation methodology used in preparing the profitability data. The
Independent Board Members noted this information supplemented the
profitability information requested and received during the year to help
keep them apprised of developments affecting profitability (such as changes
in fee waivers and expense reimbursement commitments). In this regard, the
Independent Board Members noted that they had also appointed an Independent
Board Member as a point person to review and keep them apprised of changes
to the profitability analysis and/or methodologies during the year. The
Independent Board Members considered Nuveen's profitability compared with
other fund sponsors prepared by two independent third party service
providers as well as comparisons of the revenues, expenses and profit
margins of various unaffiliated management firms with similar amounts of
assets under management prepared by Nuveen.
85
ANNUAL INVESTMENT MANAGEMENT AGREEMENT
APPROVAL PROCESS (continued)
In reviewing profitability, the Independent Board Members recognized the
subjective nature of determining profitability which may be affected by
numerous factors including the allocation of expenses. Further, the
Independent Board Members recognized the difficulties in making comparisons
as the profitability of other advisers generally is not publicly available
and the profitability information that is available for certain advisers or
management firms may not be representative of the industry and may be
affected by, among other things, the adviser's particular business mix,
capital costs, types of funds managed and expense allocations.
Notwithstanding the foregoing, the Independent Board Members reviewed Nuveen's
methodology and assumptions for allocating expenses across product lines to
determine profitability. In reviewing profitability, the Independent Board
Members recognized Nuveen's investment in its fund business.
Based on its review, the Independent Board Members concluded that Nuveen's level
of profitability for its advisory activities was reasonable in light of the
services provided.
In evaluating the reasonableness of the compensation, the Independent Board
Members also considered other amounts paid to NAM by the Funds as well as any
indirect benefits (such as soft dollar arrangements, if any) NAM and its
affiliates receive, or are expected to receive, that are directly attributable
to the management of the Funds, if any. See Section E below for additional
information on indirect benefits NAM may receive as a result of its relationship
with the Funds. Based on their review of the overall fee arrangements of each
Fund, the Independent Board Members determined that the advisory fees and
expenses of the respective Fund were reasonable.
D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE
With respect to economies of scale, the Independent Board Members recognized the
potential benefits resulting from the costs of a fund being spread over a larger
asset base. The Independent Board Members therefore considered whether the Funds
have appropriately benefited from any economies of scale and whether there is
potential realization of any further economies of scale. In considering
economies of scale, the Independent Board Members have recognized that economies
of scale are difficult to measure and predict with precision, particularly on a
fund-by-fund basis. Notwithstanding the foregoing, one method to help ensure the
shareholders share in these benefits is to include breakpoints in the advisory
fee schedule. Accordingly, the Independent Board Members reviewed and considered
the fund-level breakpoints in the advisory fee schedules that reduce advisory
fees. In this regard, given that the Funds are closed-end funds, the Independent
Board Members recognized that although the Funds may from time to time make
additional share offerings, the growth in their assets will occur primarily
through appreciation of each Fund's investment portfolio.
In addition to fund-level advisory fee breakpoints, the Board also considered
the Funds' complex-wide fee arrangement. Pursuant to the complex-wide fee
arrangement, the fees of the funds in the Nuveen complex, including the Funds,
are reduced as the assets in the fund complex reach certain levels. In
evaluating the complex-wide fee arrangement, the Independent Board Members
recognized that the complex-wide fee schedule was recently revised in 2007 to
provide for additional fee savings to shareholders and considered the amended
schedule. The Independent Board Members further considered that the complex-wide
fee arrangement seeks to provide the benefits of economies of scale to fund
shareholders when total fund
86
complex assets increase, even if assets of a particular fund are unchanged or
have decreased. The approach reflects the notion that some of Nuveen's costs are
attributable to services provided to all its funds in the complex and therefore
all funds benefit if these costs are spread over a larger asset base. Based on
their review, the Independent Board Members concluded that the breakpoint
schedule and complex-wide fee arrangement were acceptable and desirable in
providing benefits from economies of scale to shareholders.
E. INDIRECT BENEFITS
In evaluating fees, the Independent Board Members received and considered
information regarding potential "fall out" or ancillary benefits NAM or its
affiliates may receive as a result of its relationship with each Fund. In this
regard, the Independent Board Members considered revenues received by affiliates
of NAM for serving as agent at Nuveen's preferred trading desk and for serving
as a co-manager in the initial public offering of new closed-end exchange traded
funds.
In addition to the above, the Independent Board Members considered whether NAM
received any benefits from soft dollar arrangements whereby a portion of the
commissions paid by a Fund for brokerage may be used to acquire research that
may be useful to NAM in managing the assets of the Funds and other clients. The
Independent Board Members noted that NAM does not currently have any soft dollar
arrangements; however, to the extent certain bona fide agency transactions that
occur on markets that traditionally trade on a principal basis and riskless
principal transactions are considered as generating "commissions," NAM intends
to comply with the applicable safe harbor provisions.
Based on their review, the Independent Board Members concluded that any indirect
benefits received by NAM as a result of its relationship with the Funds were
reasonable and within acceptable parameters.
F. OTHER CONSIDERATIONS
The Independent Board Members did not identify any single factor discussed
previously as all-important or controlling. The Board Members, including the
Independent Board Members, unanimously concluded that the terms of the Advisory
Agreements are fair and reasonable, that NAM's fees are reasonable in light of
the services provided to each Fund and that the Advisory Agreements be renewed.
87
Reinvest Automatically
EASILY and CONVENIENTLY
NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET UP YOUR
REINVESTMENT ACCOUNT.
NUVEEN CLOSED-END FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End Fund allows you to conveniently reinvest dividends and/or
capital gains distributions in additional Fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
greater of the net asset value or 95% of the then-current market price. If the
shares are trading at less than net asset value, shares for your account will be
purchased on the open market. If the Plan Agent begins purchasing Fund shares on
the open market while shares are trading below net asset value, but the Fund's
shares subsequently trade at or above their net asset value before the Plan
Agent is able to complete its purchases, the Plan Agent may cease open-market
purchases and may invest the uninvested portion of the distribution in
newly-issued Fund shares at a price equal to the greater of the shares' net
asset value or 95% of the shares' market value on the last business day
immediately prior to the purchase date. Dividends and distributions received to
purchase shares in the open market will normally be invested shortly after the
dividend payment date. No interest will be paid on dividends and distributions
awaiting reinvestment. Because the market price of the shares may increase
before purchases are completed, the average purchase price per share may exceed
the market price at the time of valuation, resulting in the acquisition of fewer
shares than if the dividend or distribution had been paid in shares issued by
the Fund. A pro rata portion of any applicable brokerage commissions on open
market purchases will be paid by Plan participants. These commissions usually
will be lower than those charged on individual transactions.
88
FLEXIBLE
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
89
Glossary of
TERMS USED in this REPORT
[] AUCTION RATE BOND: An auction rate bond is a security whose interest
payments are adjusted periodically through an auction process, which
process typically also serves as a means for buying and selling the bond.
Auctions that fail to attract enough buyers for all the shares offered for
sale are deemed to have "failed", with current holders receiving a
formula-based interest rate until the next scheduled auction.
[] 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 the number of years to maturity
of the bonds in a Fund's portfolio, computed by weighting each bond's time
to maturity (the date the security comes due) by the market value of the
security. This figure does not account for the likelihood of prepayments or
the exercise of call provisions unless an escrow account has been
established to redeem the bond before maturity. The market value weighting
for an investment in an inverse floating rate security is the value of the
portfolio's residual interest in the inverse floating rate trust, and does
not include the value of the floating rate securities issued by the trust.
[] INVERSE FLOATERS: Inverse floating rate securities are created by
depositing a municipal bond, typically with a fixed interest rate, into a
special purpose trust created by a broker-dealer. This trust, in turn, (a)
issues floating rate certificates typically paying short-term tax-exempt
interest rates to third parties in amounts equal to some fraction of the
deposited bond's par amount or market value, and (b) issues an inverse
floating rate certificate (sometimes referred to as an "inverse floater")
to an investor (such as a Fund) interested in gaining investment exposure
to a long-term municipal bond. The income received by the holder of the
inverse floater varies inversely with the short-term rate paid to the
floating rate certificates' holders, and in most circumstances the holder
of the inverse floater bears substantially all of the underlying bond's
downside investment risk. The holder of the inverse floater typically also
benefits disproportionately from any potential appreciation of the
underlying bond's value. Hence, an inverse floater essentially represents
an investment in the underlying bond on a leveraged basis.
[] LEVERAGE-ADJUSTED DURATION: Duration is a measure of the expected period
over which a bond's principal and interest will be paid, and consequently
is a measure of the sensitivity of a bond's or bond Fund's value to changes
when market interest rates change. Generally, the longer a bond's or Fund's
duration, the more the price of the bond or Fund will change as interest
rates change. Leverage-adjusted duration takes into account the leveraging
process for a Fund and therefore is longer than the duration of the Fund's
portfolio of bonds.
[] 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 Preferred 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.
[] ZERO COUPON BOND: A zero coupon bond does not pay a regular interest coupon
to its holders during the life of the bond. Tax-exempt income to the holder
of the bond comes from accretion of the difference between the original
purchase price of the bond at issuance and the par value of the bond at
maturity and is effectively paid at maturity. The market prices of zero
coupon bonds generally are more volatile than the market prices of bonds
that pay interest periodically.
90
Other Useful INFORMATION
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
You may obtain (i) each Fund's quarterly portfolio of investments, (ii)
information regarding how the Funds voted proxies relating to portfolio
securities held during the twelve-month period ended June 30, 2008, and (iii) a
description of the policies and procedures that the Funds used to determine how
to vote proxies relating to portfolio securities without charge, upon request,
by calling Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website
at www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities
and Exchange Commission ("SEC"). The SEC may charge a copying fee for this
information. Visit the SEC on-line at http://www.sec.gov or in person at the
SEC's Public Reference Room in Washington, D.C. Call the SEC at (202) 942-8090
for room hours and operation. You may also request Fund information by sending
an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public
References Section at 100 F Street NE, Washington, D.C. 20549.
CEO CERTIFICATION DISCLOSURE
Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange
(NYSE) the annual CEO certification as required by Section 303A.12(a) of the
NYSE Listed Company Manual.
Each Fund has filed with the Securities and Exchange Commission the
certification of its Chief Executive Officer and Chief Financial Officer
required by Section 302 of the Sarbanes-Oxley Act.
BOARD OF TRUSTEES
John P. Amboian
Robert P. Bremner
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Judith M. Stockdale
Carole E. Stone
Terence J. Toth
FUND MANAGER
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust Company
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust Company
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
Chicago, IL
Each Fund intends to repurchase or redeem shares of its own common or preferred
stock in the future at such times and in such amounts as is deemed advisable.
During the period covered by this report, NCP, NQC, NVC and NUC redeemed and/or
noticed for redemption 243, 683, 909 and 799 preferred shares, respectively. Any
future repurchases or redemptions will be reported to shareholders in the next
annual or semi-annual report.
91
Nuveen Investments:
-------------------
SERVING INVESTORS FOR GENERATIONS
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
We offer many different investing solutions for our clients' different needs.
Nuveen Investments is a global investment management firm that seeks to help
secure the long-term goals of institutions and high net worth investors as well
as the consultants and financial advisors who serve them. Nuveen Investments
markets its growing range of specialized investment solutions under the
high-quality brands of HydePark, NWQ, Nuveen, Rittenhouse, Santa Barbara,
Symphony and Tradewinds. In total, the Company managed $152 billion of assets on
June 30, 2008.
Find out how we can help you reach your financial goals.
To learn more about the products and services Nuveen Investments offers, talk to
your financial advisor, or call us at (800) 257-8787. Please read the
information provided carefully before you invest. Be sure to obtain a
prospectus, where applicable. Investors should consider the investment objective
and policies, risk considerations, charges and expenses of the Fund carefully
before investing. The prospectus contains this and other information relevant to
an investment in the Fund. For a prospectus, please contact your securities
representative or Nuveen Investments, 333 W. Wacker Dr., Chicago, IL 60606.
Please read the prospectus carefully before you invest or send money.
Learn more about Nuveen Funds at: www.nuveen.com/etf
Share prices
Fund details
Daily financial news
Investor education
Interactive planning tools
EAN-A-0808D
ITEM 2. CODE OF ETHICS.
As of the end of the period covered by this report, the registrant has adopted a
code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller, or
persons performing similar functions. There were no amendments to or waivers
from the Code during the period covered by this report. The registrant has
posted the code of ethics on its website at www.nuveen.com/etf. (To view the
code, click on the Shareholder Resources drop down menu box, click on Fund
Governance and then click on Code of Conduct.)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The registrant's Board of Directors or Trustees determined that the registrant
has at least one "audit committee financial expert" (as defined in Item 3 of
Form N-CSR) serving on its Audit Committee. The registrant's audit committee
financial expert is Jack B. Evans, who is "independent" for purposes of Item 3
of Form N-CSR.
Mr. Evans was formerly President and Chief Operating Officer of SCI Financial
Group, Inc., a full service registered broker-dealer and registered investment
adviser ("SCI"). As part of his role as President and Chief Operating Officer,
Mr. Evans actively supervised the Chief Financial Officer (the "CFO") and
actively supervised the CFO's preparation of financial statements and other
filings with various regulatory authorities. In such capacity, Mr. Evans was
actively involved in the preparation of SCI's financial statements and the
resolution of issues raised in connection therewith. Mr. Evans has also served
on the audit committee of various reporting companies. At such companies, Mr.
Evans was involved in the oversight of audits, audit plans, and the preparation
of financial statements. Mr. Evans also formerly chaired the audit committee of
the Federal Reserve Bank of Chicago.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Nuveen California Municipal Value Fund, Inc.
The following tables show the amount of fees that Ernst & Young LLP, the Fund's
auditor, billed to the Fund during the Fund's last two full fiscal years. For
engagements with Ernst & Young LLP the Audit Committee approved in advance all
audit services and non-audit services that Ernst & Young LLP provided to the
Fund, except for those non-audit services that were subject to the pre-approval
exception under Rule 2-01 of Regulation S-X (the "pre-approval exception"). The
pre-approval exception for services provided directly to the Fund waives the
pre-approval requirement for services other than audit, review or attest
services if: (A) the aggregate amount of all such services provided constitutes
no more than 5% of the total amount of revenues paid by the Fund to its
accountant during the fiscal year in which the services are provided; (B) the
Fund did not recognize the services as non-audit services at the time of the
engagement; and (C) the services are promptly brought to the Audit Committee's
attention, and the Committee (or its delegate) approves the services before the
audit is completed.
The Audit Committee has delegated certain pre-approval responsibilities to its
Chairman (or, in his absence, any other member of the Audit Committee).
SERVICES THAT THE FUND'S AUDITOR BILLED TO THE FUND
AUDIT FEES BILLED AUDIT-RELATED FEES TAX FEES ALL OTHER FEES
FISCAL YEAR ENDED TO FUND (1) BILLED TO FUND (2) BILLED TO FUND (3) BILLED TO FUND
---------------------------------------------------------------------------------------------------------------------------------
August 31, 2008 $ 14,840 $ 0 $ 0 $ 0
---------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0% 0%
pursuant to
pre-approval
exception
---------------------------------------------------------------------------------------------------------------------------------
August 31, 2007 $ 13,057 $ 0 $ 500 0
---------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0% 0%
pursuant to
pre-approval
exception
---------------------------------------------------------------------------------------------------------------------------------
(1) "Audit Fees" are the aggregate fees billed for professional services for
the audit of the Fund's annual financial statements and services provided
in connection with statutory and regulatory filings or engagements.
(2) "Audit Related Fees" are the aggregate fees billed for assurance and
related services reasonably related to the performance of the audit or
review of financial statements and are not reported under "Audit Fees".
(3) "Tax Fees" are the aggregate fees billed for professional services for tax
advice, tax compliance, and tax planning.
SERVICES THAT THE FUND'S AUDITOR BILLED TO THE
ADVISER AND AFFILIATED FUND SERVICE PROVIDERS
The following tables show the amount of fees billed by Ernst & Young LLP to
Nuveen Asset Management ("NAM" or the "Adviser"), and any entity controlling,
controlled by or under common control with NAM ("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 tables also show the percentage of fees subject to the pre-approval
exception. The pre-approval exception for services provided to the Adviser and
any Affiliated Fund Service Provider (other than audit, review or attest
services) waives the pre-approval requirement if: (A) the aggregate amount of
all such services provided constitutes no more than 5% of the total amount of
revenues paid to Ernst & Young LLP by the Fund, the Adviser and Affiliated Fund
Service Providers during the fiscal year in which the services are provided that
would have to be pre-approved by the Audit Committee; (B) the Fund did not
recognize the services as non-audit services at the time of the engagement; and
(C) the services are promptly brought to the Audit Committee's attention, and
the Committee (or its delegate) approves the services before the Fund's audit is
completed.
FISCAL YEAR ENDED AUDIT-RELATED FEES TAX FEES BILLED TO ALL OTHER FEES
BILLED TO ADVISER AND ADVISER AND BILLED TO ADVISER
AFFILIATED FUND AFFILIATED FUND AND AFFILIATED FUND
SERVICE PROVIDERS SERVICE PROVIDERS SERVICE PROVIDERS
----------------------------------------------------------------------------------------------------------------
August 31, 2008 $ 0 $ 0 $ 0
----------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
----------------------------------------------------------------------------------------------------------------
August 31, 2007 $ 0 $ 0 $ 0
----------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
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. 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's
independence.
FISCAL YEAR ENDED TOTAL NON-AUDIT FEES
BILLED TO ADVISER AND
AFFILIATED FUND SERVICE TOTAL NON-AUDIT FEES
PROVIDERS (ENGAGEMENTS BILLED TO ADVISER AND
RELATED DIRECTLY TO THE AFFILIATED FUND SERVICE
TOTAL NON-AUDIT FEES OPERATIONS AND FINANCIAL PROVIDERS (ALL OTHER
BILLED TO FUND REPORTING OF THE FUND) ENGAGEMENTS) TOTAL
-------------------------------------------------------------------------------------------------------------------------------
August 31, 2008 $ 0 $ 0 $ 0 $ 0
August 31, 2007 $ 500 $ 0 $ 0 $ 500
"Non-Audit Fees billed to Adviser" for both fiscal year ends represent "Tax
Fees" billed to Adviser in their respective amounts from the previous table.
Audit Committee Pre-Approval Policies and Procedures. Generally, the Audit
Committee must approve (i) all non-audit services to be performed for the Fund
by the Fund's independent accountants and (ii) all audit and non-audit services
to be performed by the Fund's independent accountants for the Affiliated Fund
Service Providers with respect to operations and financial reporting of the
Fund. Regarding tax and research projects conducted by the independent
accountants for the Fund and Affiliated Fund Service Providers (with respect to
operations and financial reports of the Fund) such engagements will be (i)
pre-approved by the Audit Committee if they are expected to be for amounts
greater than $10,000; (ii) reported to the Audit Committee chairman for his
verbal approval prior to engagement if they are expected to be for amounts under
$10,000 but greater than $5,000; and (iii) reported to the Audit Committee at
the next Audit Committee meeting if they are expected to be for an amount under
$5,000.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
The registrant's Board of Directors or Trustees has a separately designated
Audit Committee established in accordance with Section 3(a)(58)(A) of the
Securities Exchange Act of 1934, as amended (15 U.S.C. 78c(a)(58)(A)). As of
September 29, 2008, the members of the audit committee are Robert P. Bremner,
Jack B. Evans, Terence J. Toth, William J. Schneider and David J. Kundert.
ITEM 6. SCHEDULE OF INVESTMENTS.
See Portfolio of Investments in Item 1.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
The registrant invests its assets primarily in municipal bonds and cash
management securities. On rare occasions the registrant may acquire, directly or
through a special purpose vehicle, equity securities of a municipal bond issuer
whose bonds the registrant already owns when such bonds have deteriorated or are
expected shortly to deteriorate significantly in credit quality. The purpose of
acquiring equity securities generally will be to acquire control of the
municipal bond issuer and to seek to prevent the credit deterioration or
facilitate the liquidation or other workout of the distressed issuer's credit
problem. In the course of exercising control of a distressed municipal issuer,
NAM may pursue the registrant's interests in a variety of ways, which may entail
negotiating and executing consents, agreements and other arrangements, and
otherwise influencing the management of the issuer. NAM does not consider such
activities proxy voting for purposes of Rule 206(4)-6 under the 1940 Act, but
nevertheless provides reports to the registrant's Board of Trustees on its
control activities on a quarterly basis.
In the rare event that a municipal issuer were to issue a proxy or that the
registrant were to receive a proxy issued by a cash management security, NAM
would either engage an independent third party to determine how the proxy should
be voted or vote the proxy with the consent, or based on the instructions, of
the registrant's Board of Trustees or its representative. A member of NAM's
legal department would oversee the administration of the voting, and ensure that
records were maintained in accordance with Rule 206(4)-6, reports were filed
with the SEC on Form N-PX, and the results provided to the registrant's Board of
Trustees and made available to shareholders as required by applicable rules.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
THE PORTFOLIO MANAGER
The following individual has primary responsibility for the day-to-day
implementation of the registrant's investment strategies:
NAME FUND
Scott R. Romans Nuveen California Municipal Value Fund, Inc.
Other Accounts Managed. In addition to managing the registrant, the portfolio
manager is also primarily responsible for the day-to-day portfolio management of
the following accounts:
TYPE OF ACCOUNT NUMBER OF
PORTFOLIO MANAGER MANAGED ACCOUNTS ASSETS*
--------------------------------------------------------------------------------
Scott R. Romans Registered Investment Company 28 $5.676 billion
Other Pooled Investment Vehicles 0 $0
Other Accounts 3 $.556 million
* Assets are as of August 31, 2008. None of the assets in these accounts are
subject to an advisory fee based on performance.
Compensation. Each portfolio manager's compensation consists of three basic
elements--base salary, cash bonus and long-term incentive compensation. The
compensation strategy is to annually compare overall compensation to the market
in order to create a compensation structure that is competitive and consistent
with similar financial services companies. As discussed below, several factors
are considered in determining each portfolio manager's total compensation. In
any year these factors may include, among others, the effectiveness of the
investment strategies recommended by the portfolio manager's investment team,
the investment performance of the accounts managed by the portfolio manager, and
the overall performance of Nuveen Investments, Inc. (the parent company of NAM).
Although investment performance is a factor in determining the portfolio
manager's compensation, it is not necessarily a decisive factor. The portfolio
manager's performance is evaluated in part by comparing manager's performance
against a specified investment benchmark. This fund-specific benchmark is a
customized subset (limited to bonds in each Fund's specific state and with
certain maturity parameters) of the S&P/Investortools Municipal Bond index, an
index comprised of bonds held by managed municipal bond fund customers of
Standard & Poor's Securities Pricing, Inc. that are priced daily and whose fund
holdings aggregate at least $2 million. As of September 30, 2008, the
S&P/Investortools Municipal Bond index was comprised of 53,005 securities with
an aggregate current market value of $1,060 billion.
Base salary. Each portfolio manager is paid a base salary that is set at a level
determined by NAM in accordance with its overall compensation strategy discussed
above. NAM is not under any current contractual obligation to increase a
portfolio manager's base salary.
Cash bonus. Each portfolio manager is also eligible to receive an annual cash
bonus. The level of this bonus is based upon evaluations and determinations made
by each portfolio manager's supervisors, along with reviews submitted by his
peers. These reviews and evaluations often take into account a number of
factors, including the effectiveness of the investment strategies recommended to
the NAM's investment team, the performance of the accounts for which he serves
as portfolio manager relative to any benchmarks established for those accounts,
his effectiveness in communicating investment performance to stockholders and
their representatives, and his contribution to the NAM's investment process and
to the execution of investment strategies. The cash bonus component is also
impacted by the overall performance of Nuveen Investments, Inc. in achieving its
business objectives.
Long-term incentive compensation. In connection with the acquisition of Nuveen
Investments, Inc., by a group of investors lead by Madison Dearborn Partners in
November 2007, certain employees, including portfolio managers, received profit
interests in Nuveen's parent. These profit interests entitle the holders to
participate in the appreciation in the value of Nuveen beyond the issue date and
vest over five to seven years, or earlier in the case of a liquidity event.
Material Conflicts of Interest. Each portfolio manager's simultaneous management
of the registrant and the other accounts noted above may present actual or
apparent conflicts of interest with respect to the allocation and aggregation of
securities orders placed on behalf of the Registrant and the other account. NAM,
however, believes that such potential conflicts are mitigated by the fact that
the NAM has adopted several policies that address potential conflicts of
interest, including best execution and trade allocation policies that are
designed to ensure (1) that portfolio management is seeking the best price for
portfolio securities under the circumstances, (2) fair and equitable allocation
of investment opportunities among accounts over time and (3) compliance with
applicable regulatory requirements. All accounts are to be treated in a
non-preferential manner, such that allocations are not based upon account
performance, fee structure or preference of the portfolio manager. In addition,
NAM has adopted a Code of Conduct that sets forth policies regarding conflicts
of interest.
Beneficial Ownership of Securities. As of August 31, 2008, the portfolio manager
beneficially owned the following dollar range of equity securities issued by the
Registrant and other Nuveen Funds managed by NAM's municipal investment team.
DOLLAR RANGE OF
EQUITY SECURITIES
DOLLAR BENEFICIALLY
RANGE OF OWNED
EQUITY IN THE REMAINDER
SECURITIES OF NUVEEN
BENEFICIALLY FUNDS MANAGED BY
NAME OF PORTFOLIO OWNED IN NAM'S MUNICIPAL
MANAGER FUND FUND INVESTMENT TEAM
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Scott R. Romans Nuveen California Municipal Value Fund, Inc. $0 $10,001--$50,000
PORTFOLIO MANAGER BIO:
Scott R. Romans, PhD, joined Nuveen Investments in 2000 as a senior analyst in
the education sector. In 2003, he was assigned management responsibility for
several closed- and open-ended municipal bond funds most of which are state
funds covering California and other western states. He has been Vice President
of NAM since 2004, Portfolio Manager since 2003, and was, formerly, Assistant
Vice President (2003-2004) and Senior Analyst (2000-2003). Currently, he manages
investments for 29 Nuveen-sponsored investment companies. He holds an
undergraduate degree from the University of Pennsylvania and an MA and PhD from
the University of Chicago.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrant's Board implemented after the registrant
last provided disclosure in response to this item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")
(17 CFR 240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter
of the period covered by this report that has materially affected, or
is reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable
because the code is posted on registrant's website at www.nuveen.com/etf and
there were no amendments during the period covered by this report. (To view the
code, click on the Investor Resources drop down menu box, click on Fund
Governance and then Code of Conduct.)
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT
Attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons. Not applicable.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR
270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference. Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen California Municipal Value Fund, Inc.
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By (Signature and Title) /s/ Kevin J. McCarthy
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Kevin J. McCarthy
Vice President and Secretary
Date: November 7, 2008
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Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title) /s/ Gifford R. Zimmerman
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Gifford R. Zimmerman
Chief Administrative Officer
(principal executive officer)
Date: November 7, 2008
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By (Signature and Title) /s/ Stephen D. Foy
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Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: November 7, 2008
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