nkx.htm
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 811-21212

Nuveen California AMT-Free Municipal Income Fund
(Exact name of registrant as specified in charter)

Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
(Address of principal executive offices) (Zip code)

Kevin J. McCarthy
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
(Name and address of agent for service)

Registrant's telephone number, including area code: (312) 917-7700

Date of fiscal year end: February 28

Date of reporting period: August 31, 2013

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.

 
 

 
 

 
 
Life is Complex
 
Nuveen makes things e-simple.
 
It only takes a minute to sign up for e-Reports. Once enrolled, you'll receive an e-mail as soon as your Nuveen Investments Fund information is ready—no more waiting for delivery by regular mail. Just click on the link within the e-mail to see the report and save it on your computer if you wish.
 
Free e-Reports right to your e-mail!
 
www.investordelivery.com
If you receive your Nuveen Fund dividends and statements from your financial advisor or brokerage account.
 
or
 
www.nuveen.com/accountaccess
If you receive your Nuveen Fund dividends and statements directly from Nuveen.
 

 
 

 
Table of Contents
 
Chairman’s Letter to Shareholders
4
   
Portfolio Manager’s Comments
5
   
Fund Leverage
9
   
Common Share Information
11
   
Risk Considerations
13
   
Performance Overview and Holding Summaries
14
   
Shareholder Meeting Report
19
   
Portfolios of Investments
20
   
Statement of Assets and Liabilities
54
   
Statement of Operations
55
   
Statement of Changes in Net Assets
56
   
Statement of Cash Flows
58
   
Financial Highlights
60
   
Notes to Financial Statements
69
   
Annual Investment Management Agreement Approval Process
81
   
Reinvest Automatically, Easily and Conveniently
90
   
Glossary of Terms Used in this Report
91
   
Additional Fund Information
95
 
Nuveen Investments
 
3

 
 

 
Chairman’s Letter to Shareholders
 
 
Dear Shareholders,
 
I am pleased to have this opportunity to introduce myself to you as the new independent chairman of the Nuveen Fund Board, effective July 1, 2013. I am honored to have been selected as chairman, with its primary responsibility to serve the interests of the Nuveen Fund shareholders. My predecessor, Robert Bremner, was the first independent director to serve as chairman of the Board and I, and my fellow Board members, plan to continue his legacy of strong independent oversight of your funds.
 
The global economy has hit major turning points over the last several months to a year. The developed world is gradually recovering from their financial crisis while the emerging markets appear to be struggling with the downshift of China’s growth potential. Japan is entering a new era of growth after decades of economic stagnation and many of the Eurozone nations appear to be exiting their recession. Despite the positive events, there are still potential risks. Middle East tensions, rising oil prices, defaults in Europe and fallout from the financial stress in emerging markets could all reverse the recent progress in the global economy.
 
On the domestic front, the U.S. economy is experiencing sustainable slow growth. Corporate fundamentals are strong as earnings per share and corporate cash are at the highest level in two decades. Unemployment is trending down and the housing market has experienced a rebound, each assisting the positive economic scenario. However, there are some issues to be watched. Interest rates are expected to increase but significant uncertainty about the timing remains. Partisan politics in Washington D.C. with their troublesome outcome add to the uncertainties that could cause problems for the economy going forward.
 
In the near term, governments are focused on economic recovery and the growth of their economies, which could lead to an environment of attractive investment opportunities. Over the long term, the uncertainties mentioned earlier could hinder the potential growth. Because of this, Nuveen’s investment management teams work hard to balance return and risk with a range of investment strategies. I encourage you to read the following commentary on the management of your fund.
 
On behalf of the other members of the Nuveen Fund Board, we look forward to continuing to earn your trust in the months and years ahead.
 
Sincerely,
 
 
William J. Schneider
Chairman of the Nuveen Fund Board
October 21, 2013
 
4
 
Nuveen Investments

 
 

 

Portfolio Manager’s Comments
 
Nuveen California Premium Income Municipal Fund (NCU)
Nuveen California Dividend Advantage Municipal Fund (NAC)
Nuveen California Dividend Advantage Municipal Fund 2 (NVX)
Nuveen California Dividend Advantage Municipal Fund 3 (NZH)
Nuveen California AMT-Free Municipal Income Fund (NKX)
 
These Funds feature management by Nuveen Asset Management, LLC, an affiliate of Nuveen Investments. Portfolio manager Scott R. Romans, PhD., discusses key investment strategies and the six-month performance of these Nuveen California Municipal Funds. Scott has managed these five Funds since 2003.
 
What key strategies were used to manage these California Funds during the six-month reporting period ended August 31, 2013?
 
During this reporting period, uncertainty about the next step for the Federal Reserve’s quantitative easing program and the potential impact on the economy and financial markets led to increased market volatility. Ongoing political debate over federal spending and headline credit stories involving Detroit and Puerto Rico also contributed to an unsettled environment and prompted an increase in selling. Given this backdrop, municipal bond prices generally declined during this period, while the yield curve steepened. During this reporting period, we continued to take a bottom-up approach to discovering sectors that appeared undervalued as well as individual credits that had the potential to perform well over the long term and helped us keep our Funds fully invested.
 
We primarily focused on three strategies intended to enhance the Funds’ positioning and increase income distribution. The first of these strategies involved purchasing bonds that we believed had the best prospects for being advance refunded, that is, bonds with higher coupons or slightly shorter calls. Carrying out this strategy did not involve selling any bonds from our portfolios, but instead reinvesting the proceeds from bonds being called. Once interest rates started to rise, our focus shifted to bond swaps. Virtually all of the bonds we added to our portfolios in 2012 were purchased at significant premiums. Because premiums must be amortized, this cuts into the amount of income available for distribution from the coupon. By executing a bond swap in a rising interest rate environment, that amortization expense is basically converted into a loss, so that more of the income from the coupon can be distributed to shareholders. Most of the bonds we swapped offered similar risk characteristics and often involved the same credit, but with different maturity dates. An additional benefit of this strategy was the generation of tax loss carry-forwards that can be used to offset future capital gains. During this reporting period, we pursued this second strategy rather aggressively.
 
Certain statements in this report are forward-looking statements. Discussions of specific investments are for illustration only and are not intended as recommendations of individual investments. The forward-looking statements and other views expressed herein are those of the portfolio manager as of the date of this report. Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements, and the views expressed herein are subject to change at any time, due to numerous market and other factors. The Funds disclaim any obligation to update publicly or revise any forward-looking statements or views expressed herein.
 
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s, Moody’s Investors Service, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below investment grade ratings. Certain bonds backed by U.S. government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by these national rating agencies.
 
Nuveen Investments
 
5

 
 

 

Portfolio Manager’s Comments (continued)
 
The third strategy involved an approach known as “couponing up.” Couponing up is the process of working to improve the book yields on Fund holdings, which enables us to maintain and potentially improve the dividend stream that is passed on to shareholders. For example, during the reporting period we sold some of the Funds’ redevelopment agency holdings with 5% coupons in the 20-year maturity range at attractive prices into strong retail demand. We then used the proceeds from these sales to purchase more recent redevelopment issuance from 2010-2011 with higher coupons (e.g., 5.75%). These bonds ultimately provide a more defensive structure and enable us to increase income distributions.
 
Activity during this period was driven primarily by the execution of these strategies and the reinvestment of proceeds from called and matured bonds, which was aimed at keeping the Funds fully invested and supporting their income streams. During the first part of this period, we experienced an increased number of current bond calls resulting from a growth in refinancings, which provided a meaningful source of liquidity. These calls also had an impact on some of the Funds’ durations, since the bonds called as part of current refundings were priced to short calls and therefore had negligible durations. Although this was not a strategy during this reporting period, reinvesting these call proceeds in anything other than cash had the effect of extending duration. In the latter months of this period, as interest rates rose, refinancing activity waned. As the supply of new paper associated with the refinancings declined in the California market, we focused on the secondary market for the majority of our purchases.
 
As of August 31, 2013, all five of these Funds continued to use inverse floating rate securities. We employ inverse floaters for a variety of reasons, including duration management, income enhancement and total return enhancement.
 
How did the Funds perform during the six-month reporting period ended August 31, 2013?
 
The tables in each Fund’s Performance Overview and Holding Summaries section of this report provide the Funds’ returns for the six-month, one-year, five-year, and ten-year periods ended August 31, 2013. Each Fund’s returns are compared with the performance of a corresponding market index and Lipper classification average.
 
For the six months ended August 31, 2013, the cumulative returns on common share net asset value (NAV) for all five of these Funds underperformed the returns for the S&P Municipal Bond California Index as well as the national S&P Municipal Bond Index. For the same period, NCU exceeded the average return for the Lipper California Municipal Debt Funds Classification Average, while NAC, NVX, NZH and NKX trailed the Lipper average return.
 
Key management factors that influenced the Funds’ returns included duration and yield curve positioning, credit exposure and sector allocation. The use of regulatory leverage also was an important factor in performance during this reporting period. Leverage is discussed in more detail later in this report.
 
As interest rates rose and the yield curve steepened, municipal bonds with shorter maturities generally outperformed those with longer maturities. Overall, credits at the shortest end of the municipal yield curve posted the best returns during this period, while bonds at the longest end produced the weakest results. Duration and yield curve positioning was the major factor detracting from the Funds’ performance. All of these Funds tended to be positioned with durations slightly longer than that of the index, which hurt their performance. On the whole, NAC was the least advantageously positioned in terms of duration and yield curve exposure, with a duration that exceed that of the market by the widest margin. NCU benefited from having the shortest effective duration among these five Funds.
 
Credit exposure also factored into the Funds’ performance during these six months, as credit spreads, or the difference in yield spreads between U.S. Treasury securities and comparable investments such as municipal bonds, began to
 
6
 
Nuveen Investments

 
 

 

widen and higher quality bonds generally outperformed lower quality bonds. All of these Funds generally benefited from their exposure to the higher rated categories. However, they tended to be underweighted in these categories and overweighted in lower rated bonds, which hampered their performance. Among these Funds, NAC, NVX and NZH had the heaviest allocations of lower rated bonds (bonds ranked BBB or lower), while NCU was helped by a heavier weighting of bonds rated AAA. NKX, which was managed as an insured Fund until May 2012, continued to have a relatively higher credit profile, which worked in its favor during this reporting period.
 
After underperforming for many months, pre-refunded bonds, which are typically backed by U.S. Treasury securities, were among the best performing market segments during this reporting period. The outperformance of these bonds can be attributed primarily to their shorter effective maturities and higher credit quality. NCU and NKX benefited from their heavier weightings in pre-refunded bonds, while NAC and NVX had the smallest allocations of these bonds. General obligation (GO), housing, redevelopment agency (RDA) and tax increment financing (TIF) district bonds also typically outperformed the general municipal market. During this reporting period, NKX’s overweighting in TIF credits was a positive contributor to its performance.
 
In contrast, revenue bonds as a whole underperformed the municipal market. Among the revenue sectors that lagged municipal market performance by the widest margins for this reporting period were industrial development revenue (IDR), health care (including hospitals), water and sewer, and transportation. Tobacco credits backed by the 1998 master tobacco settlement agreement also were among the poorest performing market sectors, due in part to their longer effective durations. All of these Funds had similar allocations of tobacco credits, with NAC and NVX having the heaviest weightings and NCU and NKX the smallest.
 
Shareholders should be aware of issues impacting the Funds’ Puerto Rico holdings. In 2012, Moody’s downgraded Puerto Rico Sales Tax Financing Corporation (COFINA) bonds to Aa3 from Aa2 and Puerto Rico GO bonds to Baa3 from Baa1. These downgrades were based on Puerto Rico’s ongoing economic problems and, in the case of the COFINA bonds, the impact of these problems on the projected growth of sales tax revenues. However, the COFINA bonds were able to maintain a higher credit rating than the GOs because, unlike the revenue streams supporting some Puerto Rican issues, the sales taxes supporting the COFINA bonds cannot be diverted and used to support Puerto Rico’s GO bonds. For the reporting period ended August 31, 2013, Puerto Rico paper generally underperformed the municipal market as a whole. NCU did not have any Puerto Rico holdings, while NAC, NVX, NZH, and NKX had limited exposure to Puerto Rico, with holdings ranging from less than 1% in NAC to approximately 3% in NVX. The majority of these holdings are the dedicated sales tax bonds issued by COFINA. NVX also has a small position in Puerto Rico GO bonds, all of which are insured, and NZH holds Puerto Rico highway revenue credits. Exposure to enhanced Puerto Rico bonds (that is, credits that were not insured or escrowed) did not exceed 1.4% in any of these Funds and, in most cases, was significantly less. The limited nature of the Funds’ exposure to Puerto Rico credits resulted in negligible impact from the bonds’ underperformance.
 
Given the Puerto Rico situation and Detroit’s bankruptcy filing in July 2013, we should note that we continue to closely monitor credit conditions in the California market. In August 2013, Fitch upgraded the rating on California state GO debt to A from A-, while Moody’s and S&P maintained their ratings of A1 and A, respectively. We also continue to watch the status of local municipalities such as San Bernardino and Stockton, which filed for bankruptcy in 2012 as they became increasingly squeezed by budget problems resulting from rising pension costs. At the end of August 2013, San Bernardino was awarded bankruptcy protection by the court, joining Stockton, which has begun forming a restructuring plan after receiving Chapter 9 protection in April 2013. San Bernardino currently has unfunded pension liabilities of approximately $145 million as well as $50 million in bonds it issued in 2005 to help cover pension obligations. Pension liabilities, primarily due to the California Public Employees’ Retirement System (CalPERS), also were at the
 
Nuveen Investments
 
7

 
 

 

Portfolio Manager’s Comments (continued)
 
heart of Stockton’s bankruptcy filing. With the recent press surrounding Detroit, it is worth noting the major difference that exists between the bankruptcy in Detroit and the situation in Stockton and San Bernardino and that is that the California cities’ problems stem from pension obligations, rather than a history of heavy debt burdens and significant tax base deterioration over many years, as in Detroit. Among these Funds, both NZH and NKX had exposure to Stockton and San Bernardino, all of which is insured.
 
APPROVED FUND REORGANIZATIONS
 
On October 13, 2013 (subsequent to the close of this reporting period) the Nuveen Funds Board of Directors/Trustees approved a series of reorganizations for certain of the California Funds included in this report. The reorganizations are subject to customary conditions, including shareholder approval at annual shareholder meetings in early 2014. Each reorganization is intended to create one, larger-state fund, which would potentially offer shareholders the following benefits:
 
•  
Lower fund expense ratios (excluding the effects of leverage), as fixed costs are spread over a larger asset base;
   
•  
Enhanced secondary market trading, as larger funds potentially make it easier for investors to buy and sell fund shares;
   
•  
Lower per share trading costs through reduced bid/ask spreads due to a larger common share float; and
   
•  
Increased fund flexibility in managing the structure and cost of leverage over time.
 
The approved reorganizations are as follows:
 
Acquired Funds
 
Acquiring Funds
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 Dividend Advantage Municipal Fund (NAC)
Nuveen California Select Quality Municipal Fund, Inc. (NVC)
   
Nuveen California Quality Income Municipal Fund, Inc. (NUC)
   
Nuveen California Premium Income Municipal Fund (NCU)
 
Nuveen California AMT-Free Municipal Income Fund (NKX)
 
Upon the closing of a reorganization, an Acquired Fund transfers its assets to the Acquiring Fund in exchange for common and preferred shares of the Acquiring Fund, and the assumption by the Acquiring Fund of the liabilities of the Acquired Fund. Each Acquired Fund is then liquidated, dissolved and terminated in accordance with its Declaration of Trust. Shareholders of each Acquired Fund become shareholders of the Acquiring Fund. Holders of common shares receive newly issued common shares of their Acquiring Fund, the aggregate net asset value of which equal the aggregate net asset value of the common shares of the Acquired Fund held immediately prior to the reorganization (including for this purpose fractional Acquiring Fund shares to which shareholders are entitled). Fractional shares are sold on the open market and shareholders received cash in lieu of such fractional shares. Holders of preferred shares of each Acquired Fund receive on a one-for-one basis newly issued preferred shares of their Acquiring Fund, in exchange for preferred shares of the Acquired Fund held immediately prior to the reorganizations.
 
8
 
Nuveen Investments

 
 

 
 
Fund Leverage
 
IMPACT OF THE FUNDS’ LEVERAGE STRATEGIES ON PERFORMANCE
 
One important factor impacting the return of the Funds relative to their benchmarks was the Funds’ use of leverage. The Funds use leverage because their managers believe that, over time, leveraging provides opportunities for additional income and total return for common shareholders. However, use of leverage also can expose common shareholders to additional volatility. For example, as the prices of securities held by a Fund decline, the negative impact of these valuation changes on common share net asset value and common shareholder total return is magnified by the use of leverage. Conversely, leverage may enhance common share returns during periods when the prices of securities held by a Fund generally are rising. Leverage had a negative impact on the performance of the Funds over this reporting period.
 
As of August 31, 2013, the Funds’ percentages of effective and regulatory leverage are as shown in the accompanying table:
 
     
NCU
   
NAC
   
NVX
   
NZH
   
NKX
 
Effective Leverage*
   
38.37
%
 
40.51
%
 
40.53
%
 
41.79
%
 
39.42
%
Regulatory Leverage*
   
30.53
%
 
30.27
%
 
32.79
%
 
34.85
%
 
34.50
%
 
*
Effective leverage is a Fund’s effective economic leverage, and includes both regulatory leverage and the leverage effects of certain derivative and other investments in a Fund’s portfolio that increase the Fund’s investment exposure. Currently, the leverage effects of Tender Option Bond (TOB) inverse floater holdings are included in effective leverage values, in addition to any regulatory leverage. Regulatory leverage consists of preferred shares issued or borrowings of a Fund. Both of these are part of a Fund’s capital structure. Regulatory leverage is subject to asset coverage limits set forth in the Investment Company Act of 1940.
 
Nuveen Investments
 
9

 
 

 

Fund Leverage (continued)
 
THE FUNDS’ REGULATORY LEVERAGE
 
As of August 31, 2013, the Funds have issued and outstanding MuniFund Term Preferred (MTP) Shares and/or Variable Rate Demand Preferred (VRDP) Shares as shown in the accompanying table.

   
MTP Shares
 
VRDP Shares
     
   
Series
 
Shares Issued at Liquidation Value
 
Annual
Interest Rate
NYSE /
NYSE MKT
Ticker
 
Series
 
Shares Issued at Liquidation Value
 
Total
 
NCU
   
2015
 
$
35,250,000
   
2.00
%
 
NCU PRC
   
 
$
       
         
$
35,250,000
                   
$
 
$
35,250,000
 
NAC
       
$
   
   
   
1
 
$
136,200,000
       
         
$
             
 
 
 
$
136,200,000
 
$
136,200,000  
NVX**
         
   
   
   
1
 
$
98,000,000
       
         
$
                   
$
98,000,000
 
$
98,000,000
 
NZH
   
2014
 
$
27,000,000
   
2.35
%
 
NZH PRA
   
 
$
       
     
2014-1
   
46,294,500
   
2.25
%
 
NZH PRB
   
   
       
     
2015
   
86,250,000
   
2.95
%
 
NZH PRC
   
   
       
         
$
159,544,500
                   
$
 
$
159,544,500
 
NKX
       
$
   
   
   
2
 
$
35,500,000
       
           
   
   
   
3
   
42,700,000
       
           
   
   
   
4
   
109,000,000
       
           
   
   
   
5
   
104,400,000
       
         
$
                   
$
291,600,000
 
$
291,600,000
 
 
**
Does not include MTP Shares noticed for redemption.
 
On August 29, 2013, NVX issued 980 VRDP Shares to qualified institutional buyers in a private offering pursuant to Rule 144A of the Securities Act of 1933. The proceeds of this issuance were used to redeem all series of the Fund’s MTP Shares, at their $10.00 liquidation value per share plus an additional amount representing any dividend amounts owed, on September 9, 2013 (subsequent to the close of this reporting period.)
 
Subsequent to the close of this reporting period, NZH redeemed all series of its MTP Shares, at their $10.00 liquidation value per share plus an additional amount representing any dividend amounts owed, with the proceeds of newly issued VRDP Shares. On September 26, 2013, VRDP Shares were issued to qualified institutional buyers in a private offering pursuant to Rule 144A of the Securities Act of 1933 and NZH’s MTP Shares were redeemed on October 7, 2013.
 
Refer to Notes to Financial Statements, Note 1 – General Information and Significant Accounting Policies for further details on MTP and VRDP Shares.
 
10
 
Nuveen Investments

 
 

 

Common Share Information
 
COMMON SHARE DIVIDENDS INFORMATION
 
During the current reporting period ended August 31, 2013, the Funds’ monthly dividends to common shareholders were as shown in the accompanying table.
 
   
Per Common Share Amounts
     
NCU
   
NAC
   
NVX
   
NZH
   
NKX
 
March
 
$
0.0700
 
$
0.0740
 
$
0.0750
 
$
0.0670
 
$
0.0700
 
April
   
0.0700
   
0.0740
   
0.0750
   
0.0670
   
0.0700
 
May
   
0.0700
   
0.0740
   
0.0750
   
0.0670
   
0.0700
 
June
   
0.0700
   
0.0740
   
0.0750
   
0.0670
   
0.0700
 
July
   
0.0700
   
0.0740
   
0.0750
   
0.0670
   
0.0700
 
August
   
0.0700
   
0.0740
   
0.0750
   
0.0670
   
0.0700
 
                                 
Market Yield**
   
6.56%
   
7.23%
   
7.05%
   
6.97%
   
6.98%
 
Taxable-Equivalent Yield**
   
10.05%
   
11.07%
   
10.80%
   
10.67%
   
10.69%
 
 
**
Market Yield is based on the Fund’s current annualized monthly dividend divided by the Fund’s current market price as of the end of the reporting period. 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 a Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower.
 
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 August 31, 2013, all of the Funds in this report had positive UNII balances, based on our best estimate, for tax and positive UNII balances for financial reporting purposes.
 
COMMON SHARE REPURCHASES
 
As of August 31, 2013, and since the inception of the Funds’ repurchase programs, the Funds have cumulatively repurchased and retired their outstanding common shares as shown in the accompanying table. Since the inception of the Funds’ repurchase programs, NAC and NKX have not repurchased any of their outstanding common shares.
 
     
NCU
   
NAC
   
NVX
   
NZH
   
NKX
 
Common Shares Cumulatively Repurchased and Retired
   
44,500
   
   
50,700
   
12,900
   
 
Common Shares Authorized for Repurchase
   
575,000
   
2,350,000
   
1,475,000
   
2,415,000
   
4,185,000
 
 
During the current reporting period, the Funds did not repurchase any of their outstanding common shares.
 
Nuveen Investments
 
11

 
 

 

Common Share Information (continued)
 
COMMON SHARE EQUITY SHELF PROGRAMS
 
The following Funds are authorized to issue additional common shares through their ongoing equity shelf program. Under this program, each Fund, subject to market conditions, may raise additional capital from time to time in varying amounts and offering methods at a net price at or above the Fund’s NAV per common share.
 
     
NAC
   
NKX
 
Additional Common Shares Authorized
   
2,300,000
   
4,100,000
 
 
During the current reporting period, NAC and NKX did not sell common shares through their equity shelf programs.
 
Refer to Notes to Financial Statements, Note 1 – General Information and Significant Accounting Policies for further details on the Funds’ Equity Shelf Programs.
 
OTHER COMMON SHARE INFORMATION
 
As of August 31, 2013, and during the current reporting period, the Funds’ common share prices were trading at a premium/(discount) to their common share NAVs as shown in the accompanying table.
 
     
NCU
   
NAC
   
NVX
   
NZH
   
NKX
 
Common Share NAV
 
$
13.99
 
$
13.33
 
$
13.61
 
$
12.35
 
$
13.23
 
Common Share Price
 
$
12.80
 
$
12.28
 
$
12.76
 
$
11.54
 
$
12.04
 
Premium/(Discount) to NAV
   
(8.51
)%
 
(7.88
)%
 
(6.25
)%
 
(6.56
)%
 
(8.99
)%
6-Month Average Premium/(Discount) to NAV
   
(5.25
)%
 
(5.69
)%
 
(6.48
)%
 
(7.49
)%
 
(7.72
)%
 
12
 
Nuveen Investments

 
 

 

Risk Considerations
 
Fund shares are not guaranteed or endorsed by any bank or other insured depository institution, and are not federally insured by the Federal Deposit Insurance Corporation. Past performance is no guarantee of future results. Fund common shares are subject to a variety of risks, including:
 
Investment, Market and Price Risk. An investment in common shares is subject to investment risk, including the possible loss of the entire principal amount that you invest. Your investment in common shares represents an indirect investment in the municipal securities owned by the Fund, which generally trade in the over-the-counter markets. Shares of closed-end investment companies like these Funds frequently trade at a discount to their net asset value (NAV). Your common shares at any point in time may be worth less than your original investment, even after taking into account the reinvestment of Fund dividends and distributions.
 
Leverage Risk. Each Fund’s use of leverage creates the possibility of higher volatility for the Fund’s per share NAV, market price, distributions and returns. There is no assurance that a Fund’s leveraging strategy will be successful.
 
Tax Risk. The tax treatment of Fund distributions may be affected by new IRS interpretations of the Internal Revenue Code and future changes in tax laws and regulations.
 
Issuer Credit Risk. This is the risk that a security in a Fund’s portfolio will fail to make dividend or interest payments when due.
 
Interest Rate Risk. Fixed-income securities such as bonds, preferred, convertible and other debt securities will decline in value if market interest rates rise.
 
Reinvestment Risk. If market interest rates decline, income earned from a Fund’s portfolio may be reinvested at rates below that of the original bond that generated the income.
 
Call Risk or Prepayment Risk. Issuers may exercise their option to prepay principal earlier than scheduled, forcing a Fund to reinvest in lower-yielding securities.
 
Inverse Floater Risk. The Funds invest in inverse floaters. Due to their leveraged nature, these investments can greatly increase a Fund’s exposure to interest rate risk and credit risk. In addition, investments in inverse floaters involve the risk that the Fund could lose more than its original principal investment.
 
Nuveen Investments
 
13

 
 

 
 
NCU
 
 
Nuveen California Premium Income Municipal Fund
 
Performance Overview and Holding Summaries as of August 31, 2013
 
Average Annual Total Returns as of August 31, 2013
 
   
Cumulative
 
Average Annual
     
6-Month
   
1-Year
 
5-Year
 
10-Year
NCU at Common Share NAV
   
(9.71
)%
   
(6.38
)%
 
6.45
%
 
5.97
%
NCU at Common Share Price
   
(16.47
)%
   
(10.44
)%
 
6.83
%
 
5.96
%
S&P Municipal Bond California Index
   
(5.98
)%
   
(3.05
)%
 
4.80
%
 
4.80
%
S&P Municipal Bond Index
   
(5.99
)%
   
(3.74
)%
 
4.50
%
 
4.55
%
Lipper California Municipal Debt Funds Classification Average
   
(11.81
)%
   
(7.54
)%
 
5.00
%
 
5.10
%
 
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. Comparative index and Lipper return information is provided for the Fund’s shares at NAV only. Indexes and Lipper averages are not available for direct investment.
 
 
Portfolio Composition1
 
(as a % of total investments)
 
Tax Obligation/Limited
33.8%
Tax Obligation/General
23.9%
Health Care
20.9%
U.S. Guaranteed
5.5%
Water and Sewer
4.6%
Other
11.3%

Credit Quality1,2,3
 
(as a % of total investment exposure)
 
AAA/U.S.Guaranteed
13.4%
AA
32.1%
A
34.4%
BBB
12.3%
BB or Lower
2.1%
N/R
3.7%

Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this page.
1
Holdings are subject to change.
2
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investors Service, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by these national rating agencies.
3
Percentages may not add to 100% due to the exclusion of other assets less liabilities from the table.
 
14
 
Nuveen Investments

 
 

 
 
NAC
 
 
Nuveen California Dividend Advantage Municipal Fund
 
Performance Overview and Holding Summaries as of August 31, 2013
 
Average Annual Total Returns as of August 31, 2013
 
   
Cumulative
 
Average Annual
     
6-Month
   
1-Year
 
5-Year
 
10-Year
NAC at Common Share NAV
   
(13.60
)%
   
(8.87
)%
 
5.25
%
 
5.40
%
NAC at Common Share Price
   
(19.79
)%
   
(14.39
)%
 
5.51
%
 
5.24
%
S&P Municipal Bond California Index
   
(5.98
)%
   
(3.05
)%
 
4.80
%
 
4.80
%
S&P Municipal Bond Index
   
(5.99
)%
   
(3.74
)%
 
4.50
%
 
4.55
%
Lipper California Municipal Debt Funds Classification Average
   
(11.81
)%
   
(7.54
)%
 
5.00
%
 
5.10
%
 
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. Comparative index and Lipper return information is provided for the Fund’s shares at NAV only. Indexes and Lipper averages are not available for direct investment.
 
 
Portfolio Composition1
 
(as a % of total investments)
 
Tax Obligation/Limited
28.1%
Health Care
20.5%
Tax Obligation/General
19.8%
Water and Sewer
10.3%
Consumer Staples
4.9%
U.S. Guaranteed
4.4%
Other
12.0%

Credit Quality1,2,3
 
(as a % of total investment exposure)
 
AAA/U.S.Guaranteed
4.9%
AA
42.4%
A
27.8%
BBB
10.5%
BB or Lower
6.0%
N/R
5.2%
 
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this page.
1
Holdings are subject to change.
2
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investors Service, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by these national rating agencies.
3
Percentage may not add to 100% due to the exclusion of other assets less liabilities from the table.
 
Nuveen Investments
 
15

 
 

 
 
NVX
 
 
Nuveen California Dividend Advantage Municipal Fund 2
 
Performance Overview and Holding Summaries as of August 31, 2013
 
Average Annual Total Returns as of August 31, 2013
 
   
Cumulative
 
Average Annual
     
6-Month
   
1-Year
 
5-Year
 
10-Year
NVX at Common Share NAV
   
(14.24
)%
   
(9.85
)%
 
5.35
%
 
5.62
%
NVX at Common Share Price
   
(19.19
)%
   
(14.22
)%
 
7.10
%
 
6.06
%
S&P Municipal Bond California Index
   
(5.98
)%
   
(3.05
)%
 
4.80
%
 
4.80
%
S&P Municipal Bond Index
   
(5.99
)%
   
(3.74
)%
 
4.50
%
 
4.55
%
Lipper California Municipal Debt Funds Classification Average
   
(11.81
)%
   
(7.54
)%
 
5.00
%
 
5.10
%
 
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. Comparative index and Lipper return information is provided for the Fund’s shares at NAV only. Indexes and Lipper averages are not available for direct investment.
 
 
Portfolio Composition1
 
(as a % of total investments)
 
Tax Obligation/General
23.0%
Health Care
18.8%
Tax Obligation/Limited
17.9%
Utilities
10.2%
U.S. Guaranteed
8.5%
Water and Sewer
5.7%
Consumer Staples
5.4%
Education and Civic Organizations
3.7%
Other
6.8%

Credit Quality1,2,3
 
(as a % of total investment exposure)
 
AAA/U.S.Guaranteed
9.4%
AA
28.5%
A
16.3%
BBB
12.5%
BB or Lower
3.9%
N/R
3.8%
 
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this page.
1
Holdings are subject to change.
2
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investors Service, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by these national rating agencies.
3
Percentage may not add to 100% due to the exclusion of other assets less liabilities from the table.
 
16
 
Nuveen Investments

 
 

 
 
NZH
 
 
Nuveen California Dividend Advantage Municipal Fund 3
 
Performance Overview and Holding Summaries as of August 31, 2013
 
Average Annual Total Returns as of August 31, 2013
 
   
Cumulative
 
Average Annual
     
6-Month
   
1-Year
 
5-Year
 
10-Year
NZH at Common Share NAV
   
(13.54
)%
   
(8.91
)%
 
4.66
%
 
5.07
%
NZH at Common Share Price
   
(16.41
)%
   
(12.58
)%
 
4.70
%
 
5.48
%
S&P Municipal Bond California Index
   
(5.98
)%
   
(3.05
)%
 
4.80
%
 
4.80
%
S&P Municipal Bond Index
   
(5.99
)%
   
(3.74
)%
 
4.50
%
 
4.55
%
Lipper California Municipal Debt Funds Classification Average
   
(11.81
)%
   
(7.54
)%
 
5.00
%
 
5.10
%
 
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. Comparative index and Lipper return information is provided for the Fund’s shares at NAV only. Indexes and Lipper averages are not available for direct investment.
 
 
Portfolio Composition1
 
(as a % of total investments)
 
Tax Obligation/Limited
34.2%
Health Care
18.1%
Tax Obligation/General
11.6%
Water and Sewer
6.9%
Utilities
5.6%
Consumer Staples
5.5%
U.S. Guaranteed
5.4%
Other
12.7%

Credit Quality1,2,3
 
(as a % of total investment exposure)
 
AAA/U.S.Guaranteed
4.9%
AA
33.6%
A
22.9%
BBB
21.2%
BB or Lower
5.7%
N/R
5.5%
 
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this page.
1
Holdings are subject to change.
2
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investors Service, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by these national rating agencies.
3
Percentage may not add to 100% due to the exclusion of other assets less liabilities from the table.
 
Nuveen Investments
 
17

 
 

 
 
NKX
 
 
Nuveen California AMT-Free Municipal Income Fund
 
Performance Overview and Holding Summaries as of August 31, 2013
 
Average Annual Total Returns as of August 31, 2013
 
   
Cumulative
 
Average Annual
     
6-Month
   
1-Year
 
5-Year
 
10-Year
NKX at Common Share NAV
   
(12.54
)%
   
(8.51
)%
 
4.58
%
 
5.32
%
NKX at Common Share Price
   
(17.83
)%
   
(15.78
)%
 
3.60
%
 
4.76
%
S&P Municipal Bond California Index
   
(5.98
)%
   
(3.05
)%
 
4.80
%
 
4.80
%
S&P Municipal Bond Index
   
(5.99
)%
   
(3.74
)%
 
4.50
%
 
4.55
%
Lipper California Municipal Debt Funds Classification Average
   
(11.81
)%
   
(7.54
)%
 
5.00
%
 
5.10
%
 
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. Comparative index and Lipper return information is provided for the Fund’s shares at NAV only. Indexes and Lipper averages are not available for direct investment.
 
 
Portfolio Composition1
 
(as a % of total investments)
 
Tax Obligation/Limited
38.0%
Tax Obligation/General
19.5%
Health Care
12.5%
Water and Sewer
11.7%
U.S. Guaranteed
6.7%
Other
11.6%

Credit Quality1,2,3
 
(as a % of total investment exposure)
 
AAA/U.S.Guaranteed
8.1%
AA
43.5%
A
31.8%
BBB
4.8%
BB or Lower
3.7%
N/R
4.9%
 
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this page.
1
Holdings are subject to change.
2
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investors Service, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by these national rating agencies.
3
Percentage may not add to 100% due to the exclusion of other assets less liabilities from the table.
 
18
 
Nuveen Investments

 
 

 
 
NVX
 
 
Shareholder Meeting Report
 
The annual meeting of shareholders for NVX was held in the offices of Nuveen Investments on November 14, 2012; at this meeting the shareholders were asked to vote on the election of Board Members, to approve the elimination of the fundamental policies relating to the Fund’s ability to make loans and to approve the new fundamental policy relating to the Fund’s ability to make loans. The meeting was subsequently adjourned to December 14, 2012, January 24, 2013, February 22, 2013 and March 14, 2013.

   
Common and
     
   
Preferred
 
Preferred
 
   
shares voting
 
shares voting
 
   
together
 
together
 
   
as a class
 
as a class
 
To approve the elimination of the fundamental
             
policies relating to the Fund’s ability to make loans.
             
For
   
12,380,831
   
4,451,978
 
Against
   
737,606
   
171,651
 
Abstain
   
309,910
   
65,092
 
Broker Non-Votes
   
4,355,757
   
2,511,278
 
Total
   
17,784,104
   
7,199,999
 
To approve the new fundamental policy relating to
             
the Fund’s ability to make loans.
             
For
   
12,374,303
   
4,451,358
 
Against
   
735,592
   
173,251
 
Abstain
   
318,452
   
64,112
 
Broker Non-Votes
   
4,355,757
   
2,511,278
 
Total
   
17,784,104
   
7,199,999
 
 
Nuveen Investments
 
19
 
 
 

 
 
NCU
 
 
Nuveen California Premium Income Municipal Fund
 
Portfolio of Investments
 
August 31, 2013 (Unaudited)

 
Principal
     
Optional Call
         
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
   
Value
 
     
Consumer Staples – 5.6% (3.8% of Total Investments)
             
$
1,250
 
California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Alameda County Tobacco Asset Securitization Corporation, Series 2002, 5.750%, 6/01/29
 
12/13 at 100.00
BBB+
 
$
1,180,613
 
 
125
 
California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Sonoma County Tobacco Securitization Corporation, Series 2005, 4.250%, 6/01/21
 
6/15 at 100.00
BB+
   
116,020
 
 
2,415
 
California Statewide Financing Authority, Tobacco Settlement Asset-Backed Bonds, Pooled Tobacco Securitization Program, Series 2002A, 5.625%, 5/01/29
 
11/13 at 100.00
BBB
   
2,252,784
 
 
485
 
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-1, 5.750%, 6/01/47
 
6/17 at 100.00
B
   
358,187
 
 
865
 
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-2, 5.300%, 6/01/37
 
6/22 at 100.00
B
   
611,226
 
 
5,140
 
Total Consumer Staples
         
4,518,830
 
     
Education and Civic Organizations – 3.5% (2.4% of Total Investments)
             
 
70
 
California Educational Facilities Authority, Revenue Bonds, University of Redlands, Series 2005A, 5.000%, 10/01/35
 
10/15 at 100.00
A3
   
70,011
 
     
California Educational Facilities Authority, Revenue Bonds, University of the Pacific, Series 2006:
             
 
45
 
5.000%, 11/01/21
 
11/15 at 100.00
A2
   
46,671
 
 
60
 
5.000%, 11/01/25
 
11/15 at 100.00
A2
   
61,221
 
 
2,000
 
California State University, Systemwide Revenue Bonds, Series 2005C, 5.000%, 11/01/27 – NPFG Insured
 
11/15 at 100.00
Aa2
   
2,127,500
 
 
185
 
California Statewide Communities Development Authority, Charter School Revenue Bonds, Rocketship 4 – Mosaic Elementary Charter School, Series 2011A, 8.500%, 12/01/41
 
12/21 at 100.00
N/R
   
196,781
 
 
300
 
California Statewide Communities Development Authority, School Facility Revenue Bonds, Alliance College-Ready Public Schools, Series 2011A, 7.000%, 7/01/46
 
7/21 at 100.00
BBB–
   
310,734
 
 
2,660
 
Total Education and Civic Organizations
         
2,812,918
 
     
Health Care – 30.9% (20.9% of Total Investments)
             
 
335
 
California Health Facilities Financing Authority, Revenue Bonds, Rady Children’s Hospital – San Diego, Series 2011, 5.250%, 8/15/41
 
8/21 at 100.00
A+
   
336,615
 
 
3,525
 
California Health Facilities Financing Authority, Revenue Bonds, Sutter Health, Series 2007A, 5.250%, 11/15/46 (UB)
 
11/16 at 100.00
AA–
   
3,393,835
 
 
685
 
California Municipal Financing Authority, Certificates of Participation, Community Hospitals of Central California, Series 2007, 5.250%, 2/01/46
 
2/17 at 100.00
BBB
   
621,391
 
 
1,000
 
California Statewide Communities Development Authority, Revenue Bonds, Adventist Health System West, Series 2005A, 5.000%, 3/01/35
 
3/15 at 100.00
A
   
945,230
 
 
377
 
California Statewide Communities Development Authority, Revenue Bonds, Saint Joseph Health System, Trust 2554, 18.234%, 7/01/47 – AGM Insured (IF)
 
7/18 at 100.00
AA–
   
381,334
 
 
815
 
California Statewide Communities Development Authority, Revenue Bonds, ValleyCare Health System, Series 2007A, 5.125%, 7/15/31
 
7/17 at 100.00
N/R
   
691,185
 
 
1,740
 
California Statewide Community Development Authority, Revenue Bonds, Daughters of Charity Health System, Series 2005A, 5.250%, 7/01/30
 
7/15 at 100.00
BBB–
   
1,745,446
 
 
730
 
California Statewide Community Development Authority, Revenue Bonds, Kaiser Permanente System, Series 2001C, 5.250%, 8/01/31
 
8/16 at 100.00
A+
   
735,752
 
 
2,680
 
California Statewide Community Development Authority, Revenue Bonds, Methodist Hospital Project, Series 2009, 6.750%, 2/01/38
 
8/19 at 100.00
Aa2
   
3,092,532
 
 
2,100
 
California Statewide Community Development Authority, Revenue Bonds, Sherman Oaks Health System, Series 1998A, 5.000%, 8/01/22 – AMBAC Insured
 
No Opt. Call
A1
   
2,209,158
 
 
1,690
 
California Statewide Community Development Authority, Revenue Bonds, Sutter Health, Series 2005A, 5.000%, 11/15/43
 
11/15 at 100.00
AA–
   
1,609,015
 

20
 
Nuveen Investments


 
 

 
 
 
Principal
     
Optional Call
         
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
   
Value
 
     
Health Care (continued)
             
$
760
 
Loma Linda, California, Hospital Revenue Bonds, Loma Linda University Medical Center, Series 2008A, 8.250%, 12/01/38
 
12/17 at 100.00
BBB
 
$
823,977
 
 
2,600
 
Marysville, California, Revenue Bonds, The Fremont-Rideout Health Group, Series 2011, 5.250%, 1/01/42
 
1/21 at 100.00
A
   
2,530,658
 
 
1,450
 
Palomar Pomerado Health Care District, California, Certificates of Participation, Series 2010, 6.000%, 11/01/41
 
11/20 at 100.00
Baa3
   
1,383,663
 
 
1,000
 
Rancho Mirage Joint Powers Financing Authority, California, Revenue Bonds, Eisenhower Medical Center, Series 2007A, 5.000%, 7/01/38
 
7/17 at 100.00
Baa2
   
909,380
 
 
850
 
San Buenaventura, California, Revenue Bonds, Community Memorial Health System, Series 2011, 7.500%, 12/01/41
 
12/21 at 100.00
BB
   
917,575
 
 
1,415
 
Santa Clara County Financing Authority, California, Insured Revenue Bonds, El Camino Hospital, Series 2007A, 5.750%, 2/01/41 – AMBAC Insured
 
8/17 at 100.00
A+
   
1,454,563
 
 
1,000
 
The Regents of the University of California, Medical Center Pooled Revenue Bonds, Series 2009E, 5.000%, 5/15/38
 
5/17 at 101.00
Aa2
   
974,990
 
 
24,752
 
Total Health Care
         
24,756,299
 
     
Housing/Multifamily – 1.2% (0.8% of Total Investments)
             
 
490
 
California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects Series 2010A, 6.400%, 8/15/45
 
8/20 at 100.00
BBB
   
503,745
 
 
155
 
California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects Series 2012A, 5.500%, 8/15/47
 
8/22 at 100.00
BBB
   
147,687
 
 
350
 
California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects Series 2012B, 7.250%, 8/15/47
 
8/22 at 100.00
A1
   
329,704
 
 
995
 
Total Housing/Multifamily
         
981,136
 
     
Housing/Single Family – 1.5% (1.0% of Total Investments)
             
 
1,150
 
California Housing Finance Agency, California, Home Mortgage Revenue Bonds, Series 2008L, 5.500%, 8/01/38
 
2/18 at 100.00
BBB
   
1,167,894
 
 
60
 
California Housing Finance Agency, Home Mortgage Revenue Bonds, Series 2006H, 5.750%, 8/01/30 – FGIC Insured (Alternative Minimum Tax)
 
2/16 at 100.00
BBB
   
62,689
 
 
1,210
 
Total Housing/Single Family
         
1,230,583
 
     
Tax Obligation/General – 35.3% (23.9% of Total Investments)
             
     
California State, General Obligation Bonds, Various Purpose Series 2009:
             
 
2,350
 
6.000%, 11/01/39
 
11/19 at 100.00
A1
   
2,623,611
 
 
1,300
 
5.500%, 11/01/39
 
11/19 at 100.00
A1
   
1,359,293
 
 
3,500
 
California State, General Obligation Bonds, Various Purpose Series 2013, 5.000%, 4/01/37
 
4/23 at 100.00
A1
   
3,499,860
 
 
4,475
 
Coast Community College District, Orange County, California, General Obligation Bonds, Series 2006C, 5.000%, 8/01/31 – AGM Insured
 
8/18 at 100.00
Aa1
   
4,594,438
 
 
6,000
 
Hartnell Community College District, California, General Obligation Bonds, Series 2006B, 5.000%, 6/01/29 – AGM Insured (UB)
 
6/16 at 100.00
Aa2
   
6,196,320
 
 
3,000
 
Los Angeles Unified School District, California, General Obligation Bonds, Series 2005A-2, 5.000%, 7/01/24 – NPFG Insured
 
7/15 at 100.00
Aa2
   
3,206,670
 
 
1,750
 
Oxnard School District, Ventura County, California, General Obligation Bonds, Election 2012 Series 2012A, 5.000%, 8/01/37 – AGM Insured
 
8/22 at 100.00
AA–
   
1,697,675
 
 
15
 
Riverside Community College District, California, General Obligation Bonds, Series 2004A, 5.250%, 8/01/22 – NPFG Insured
 
8/14 at 100.00
AA
   
15,646
 
 
1,355
 
San Jose-Evergreen Community College District, Santa Clara County, California, General Obligation Bonds, Series 2005A, 5.000%, 9/01/25 – NPFG Insured
 
9/15 at 100.00
Aa1
   
1,459,281
 
 
8,345
 
Yosemite Community College District, California, General Obligation Bonds, Capital Appreciation, Election 2004, Series 2010D, 0.000%, 8/01/42
 
No Opt. Call
Aa2
   
2,604,141
 
 
1,000
 
Yuba Community College District, California, General Obligation Bonds, Election 2006 Series 2011C, 5.250%, 8/01/47
 
8/21 at 100.00
Aa2
   
1,010,020
 
 
33,090
 
Total Tax Obligation/General
         
28,266,955
 

Nuveen Investments
 
21
 
 
 

 
 
NCU
Nuveen California Premium Income Municipal Fund (continued)
 
Portfolio of Investments August 31, 2013 (Unaudited)

 
Principal
     
Optional Call
         
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
   
Value
 
     
Tax Obligation/Limited – 49.9% (33.8% of Total Investments)
             
$
1,000
 
Bell Community Redevelopment Agency, California, Tax Allocation Bonds, Bell Project Area, Series 2003, 5.625%, 10/01/33 – RAAI Insured
 
10/13 at 100.00
N/R
 
$
828,490
 
     
California Infrastructure and Economic Development Bank, Revenue Bonds, North County Center for Self-Sufficiency Corporation, Series 2004:
             
 
1,695
 
5.000%, 12/01/22 – AMBAC Insured
 
12/13 at 100.00
AA+
   
1,714,560
 
 
1,865
 
5.000%, 12/01/24 – AMBAC Insured
 
12/13 at 100.00
AA+
   
1,886,522
 
 
5,920
 
California State Public Works Board, Lease Revenue Bonds, Department of Veterans Affairs, Southern California Veterans Home – Chula Vista Facility, Series 1999A, 5.600%, 11/01/19 – AMBAC Insured
 
11/13 at 100.00
A2
   
5,942,608
 
 
1,000
 
California State Public Works Board, Lease Revenue Bonds, Various Capital Projects, Series 2009G-1, 5.750%, 10/01/30
 
10/19 at 100.00
A2
   
1,074,670
 
 
2,000
 
California State Public Works Board, Lease Revenue Bonds, Various Capital Projects, Series 2009-I, 6.375%, 11/01/34
 
11/19 at 100.00
A2
   
2,303,080
 
 
535
 
California State, Economic Recovery Revenue Bonds, Series 2004A, 5.000%, 7/01/15
 
7/14 at 100.00
Aa2
   
556,052
 
 
165
 
Capistrano Unified School District, Orange County, California, Special Tax Bonds, Community Facilities District, Series 2005, 5.000%, 9/01/24 – FGIC Insured
 
9/15 at 100.00
A
   
165,733
 
 
500
 
Chino Redevelopment Agency, California, Merged Chino Redevelopment Project Area Tax Allocation Bonds, Series 2006, 5.000%, 9/01/38 – AMBAC Insured
 
9/16 at 101.00
A–
   
461,785
 
 
260
 
Dinuba Redevelopment Agency, California, Tax Allocation Bonds, Merged City of Dinuba Redevelopment Project and Dinuba Redevelopment Project 2, As Amended, Refunding Series 2001, 5.000%, 9/01/31 – NPFG Insured
 
3/14 at 100.00
A
   
236,678
 
 
350
 
Fontana Redevelopment Agency, California, Jurupa Hills Redevelopment Project, Tax Allocation Refunding Bonds, 1997 Series A, 5.500%, 10/01/27
 
10/13 at 100.00
A–
   
349,979
 
 
425
 
Hesperia Community Redevelopment Agency, California, Tax Allocation Bonds, Series 2005A, 5.000%, 9/01/35 – SYNCORA GTY Insured
 
9/15 at 100.00
BB+
   
355,717
 
 
320
 
Inglewood Redevelopment Agency, California, Tax Allocation Bonds, Merged Redevelopment Project, Subordinate Lien Series 2007A-1, 5.000%, 5/01/24 – AMBAC Insured
 
5/17 at 100.00
BB+
   
310,330
 
     
Irvine Unified School District, California, Special Tax Bonds, Community Facilities District Series 2006A:
             
 
75
 
5.000%, 9/01/26
 
9/16 at 100.00
N/R
   
73,874
 
 
175
 
5.125%, 9/01/36
 
9/16 at 100.00
N/R
   
164,539
 
 
3,500
 
Livermore Redevelopment Agency, California, Tax Allocation Revenue Bonds, Livermore Redevelopment Project Area, Series 2001A, 5.000%, 8/01/26 – NPFG Insured
 
2/14 at 100.00
A
   
3,534,405
 
 
310
 
Los Angeles Community Redevelopment Agency, California, Lease Revenue Bonds, Manchester Social Services Project, Series 2005, 5.000%, 9/01/37 – AMBAC Insured
 
9/15 at 100.00
A1
   
312,731
 
 
2,000
 
Los Angeles Municipal Improvement Corporation, California, Lease Revenue Bonds, Police Headquarters, Series 2006A, 4.750%, 1/01/31 – FGIC Insured
 
1/17 at 100.00
A+
   
1,944,620
 
 
475
 
Lynwood Redevelopment Agency, California, Project A Revenue Bonds, Subordinate Lien Series 2011A, 7.250%, 9/01/38
 
9/21 at 100.00
A–
   
529,207
 
 
3,230
 
Murrieta Redevelopment Agency, California, Tax Allocation Bonds, Series 2005, 5.000%, 8/01/35 – NPFG Insured
 
8/15 at 100.00
A
   
2,990,754
 
 
170
 
National City Community Development Commission, California, Tax Allocation Bonds, National City Redevelopment Project, Series 2011, 6.500%, 8/01/24
 
8/21 at 100.00
A–
   
197,076
 
 
65
 
Novato Redevelopment Agency, California, Tax Allocation Bonds, Hamilton Field Redevelopment Project, Series 2011, 6.750%, 9/01/40
 
9/21 at 100.00
BBB+
   
69,102
 
     
Patterson Public Finance Authority, California, Revenue Bonds, Community Facilities District 2001-1, Senior Series 2013A:
             
 
450
 
5.250%, 9/01/30
 
9/23 at 100.00
N/R
   
431,442
 
 
405
 
5.750%, 9/01/39
 
9/23 at 100.00
N/R
   
393,308
 
 
70
 
Patterson Public Finance Authority, California, Revenue Bonds, Community Facilities District 2001-1, Subordinate Lien Series 2013B , 5.875%, 9/01/39
 
9/23 at 100.00
N/R
   
67,342
 
     
Perris Union High School District Financing Authority, Riverside County, California, Revenue Bonds, Series 2011:
             
 
60
 
6.000%, 9/01/33
 
9/13 at 100.00
N/R
   
60,227
 
 
135
 
6.125%, 9/01/41
 
9/13 at 100.00
N/R
   
134,017
 
 
540
 
Pittsburg Redevelopment Agency, California, Tax Allocation Bonds, Los Medanos Community Development Project, Refunding Series 2008A, 6.500%, 9/01/28
 
9/18 at 100.00
BBB–
   
551,869
 

22
 
Nuveen Investments
 
 
 

 
 
 
Principal
     
Optional Call
         
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
   
Value
 
     
Tax Obligation/Limited (continued)
             
$
210
 
Rancho Santa Fe CSD Financing Authority, California, Revenue Bonds, Superior Lien Series 2011A, 5.750%, 9/01/30
 
9/21 at 100.00
BBB+
 
$
219,299
 
 
40
 
Riverside County Redevelopment Agency, California, Tax Allocation Bonds, Jurupa Valley Project Area, Series 2011B, 6.500%, 10/01/25
 
10/21 at 100.00
A–
   
43,602
 
 
1,500
 
Roseville, California, Special Tax Bonds, Community Facilities District 1, Fiddyment Ranch, Series 2005, 5.050%, 9/01/30
 
9/15 at 100.00
N/R
   
1,382,445
 
 
1,500
 
Sacramento City Financing Authority, California, Lease Revenue Refunding Bonds, Series 1993A, 5.400%, 11/01/20 – NPFG Insured
 
No Opt. Call
A
   
1,676,430
 
 
3,000
 
Sacramento City Financing Authority, California, Lease Revenue Refunding Bonds, Series 1993B, 5.400%, 11/01/20
 
No Opt. Call
A
   
3,352,860
 
 
1,000
 
San Diego County Regional Transportation Commission, California, Sales Tax Revenue Bonds, Series 2012A, 5.000%, 4/01/42
 
4/22 at 100.00
AAA
   
1,020,250
 
 
2,700
 
San Francisco City and County Redevelopment Financing Authority, California, Tax Allocation Revenue Bonds, San Francisco Redevelopment Projects, Series 1998D, 0.000%, 8/01/24 – NPFG Insured
 
No Opt. Call
A
   
1,537,029
 
 
2,000
 
San Francisco City and County, California, Certificates of Participation, Multiple Capital Improvement Projects, Series 2009A, 5.200%, 4/01/26
 
4/19 at 100.00
AA–
   
2,106,320
 
 
30
 
San Francisco Redevelopment Finance Authority, California, Tax Allocation Revenue Bonds, Mission Bay North Redevelopment Project, Series 2011C, 6.750%, 8/01/41
 
2/21 at 100.00
A–
   
32,889
 
     
San Francisco Redevelopment Financing Authority, California, Tax Allocation Revenue Bonds, Mission Bay South Redevelopment Project, Series 2011D:
             
 
30
 
7.000%, 8/01/33
 
2/21 at 100.00
BBB
   
32,198
 
 
40
 
7.000%, 8/01/41
 
2/21 at 100.00
BBB
   
42,303
 
     
San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment Project, Series 2006C:
             
 
100
 
5.000%, 8/01/24 – NPFG Insured
 
8/17 at 100.00
A
   
100,031
 
 
275
 
5.000%, 8/01/25 – NPFG Insured
 
8/17 at 100.00
A
   
272,555
 
 
360
 
San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment Project, Series 2006D, 5.000%, 8/01/23 – AMBAC Insured
 
8/17 at 100.00
BBB
   
362,786
 
 
50
 
Signal Hill Redevelopment Agency, California, Project 1 Tax Allocation Bonds, Series 2011, 7.000%, 10/01/26
 
4/21 at 100.00
N/R
   
51,385
 
 
95
 
Yorba Linda Redevelopment Agency, Orange County, California, Tax Allocation Revenue Bonds, Yorba Linda Redevelopment Project, Subordinate Lien Series 2011A, 6.000%, 9/01/26
 
9/21 at 100.00
A–
   
101,958
 
 
40,625
 
Total Tax Obligation/Limited
         
39,975,057
 
     
Transportation – 3.4% (2.3% of Total Investments)
             
 
220
 
Bay Area Toll Authority, California, Revenue Bonds, San Francisco Bay Area Toll Bridge, Series 2008, Trust 3211, 13.465%, 10/01/32 (IF)
 
4/18 at 100.00
AA
   
249,861
 
 
2,000
 
Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Bonds, Series 1995A, 5.000%, 1/01/35
 
1/14 at 100.00
BBB–
   
1,899,240
 
 
580
 
Port of Oakland, California, Revenue Refunding Bonds, Series 2012P, 5.000%, 5/01/29 (Alternative Minimum Tax)
 
No Opt. Call
A+
   
571,909
 
 
2,800
 
Total Transportation
         
2,721,010
 
     
U.S. Guaranteed – 8.0% (5.5% of Total Investments) (4)
             
 
780
 
Bay Area Toll Authority, California, Revenue Bonds, San Francisco Bay Area Toll Bridge, Series 2006F, 5.000%, 4/01/31 (Pre-refunded 4/01/16) (UB)
 
4/16 at 100.00
AA (4)
   
866,549
 
 
3,000
 
California Infrastructure and Economic Development Bank, First Lien Revenue Bonds, San Francisco Bay Area Toll Bridge, Series 2003A, 5.000%, 7/01/22 – AGM Insured (ETM)
 
No Opt. Call
Aaa
   
3,531,420
 
 
1,112
 
California State Public Works Board, Lease Revenue Bonds, University of California Regents, Tender Option Bond Trust 1065, 9.261%, 3/01/33 (Pre-refunded 3/01/18) (IF)
 
3/18 at 100.00
Aa2 (4)
   
1,142,402
 
 
370
 
California State, Economic Recovery Revenue Bonds, Series 2004A, 5.000%, 7/01/15 (Pre-refunded 7/01/14)
 
7/14 at 100.00
Aaa
   
384,878
 
 
135
 
Roseville Joint Union High School District, Placer County, California, General Obligation Bonds, Series 2006B, 5.000%, 8/01/27 (Pre-refunded 8/01/15) – FGIC Insured
 
8/15 at 100.00
AA (4)
   
146,925
 

Nuveen Investments
 
23
 
 
 

 

NCU
Nuveen California Premium Income Municipal Fund (continued)
 
Portfolio of Investments  August 31, 2013 (Unaudited)

 
Principal
     
Optional Call
         
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
   
Value
 
     
U.S. Guaranteed (4) (continued)
             
$
325
 
San Mateo Union High School District, San Mateo County, California, Certificates of Participation, Phase 1, Series 2007A, 5.000%, 12/15/30 (Pre-refunded 12/15/17) – AMBAC Insured
 
12/17 at 100.00
AA– (4)
 
$
376,870
 
 
5,722
 
Total U.S. Guaranteed
         
6,449,044
 
     
Utilities – 1.5% (1.0% of Total Investments)
             
 
890
 
Long Beach Bond Finance Authority, California, Natural Gas Purchase Revenue Bonds, Series 2007A, 5.500%, 11/15/37
 
No Opt. Call
A
   
886,031
 
 
295
 
Merced Irrigation District, California, Electric System Revenue Bonds, Series 2005, 5.125%, 9/01/31 – SYNCORA GTY Insured
 
9/15 at 100.00
N/R
   
291,077
 
 
1,185
 
Total Utilities
         
1,177,108
 
     
Water and Sewer – 6.8% (4.6% of Total Investments)
             
 
1,125
 
Burbank, California, Wastewater System Revenue Bonds, Series 2004A, 5.000%, 6/01/23 – AMBAC Insured
 
6/14 at 100.00
AA+
   
1,161,225
 
 
2,275
 
California Pollution Control Financing Authority, Water Furnishing Revenue Bonds, Poseidon Resources Channelside Desalination Project, Series 2012, 5.000%, 11/21/45 (Alternative Minimum Tax)
 
No Opt. Call
Baa3
   
1,786,307
 
 
205
 
Healdsburg Public Financing Authority, California, Wastewater Revenue Bonds, Series 2006, 5.000%, 4/01/36 – NPFG Insured
 
4/16 at 100.00
AA–
   
205,238
 
 
670
 
Metropolitan Water District of Southern California, Waterworks Revenue Bonds, Tender Option Bond Trust 09-8B, 17.523%, 7/01/35 (IF) (5)
 
7/19 at 100.00
AAA
   
738,635
 
 
1,500
 
Orange County Water District, California, Revenue Certificates of Participation, Tender Option Bond Trust 11782-1, 17.816%, 2/15/35 (IF)
 
8/19 at 100.00
AAA
   
1,581,600
 
 
5,775
 
Total Water and Sewer
         
5,473,005
 
$
123,954
 
Total Investments (cost $115,676,474) – 147.6%
         
118,361,945
 
     
Floating Rate Obligations – (6.9)%
         
(5,525,000
)
     
MuniFund Term Preferred Shares, at Liquidation Value – (43.9)% (6)
         
(35,250,000
)
     
Other Assets Less Liabilities – 3.2%
         
2,628,168
 
     
Net Assets Applicable to Common Shares – 100%
       
$
80,215,113
 
 
(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: 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: Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies.
(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. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities.
(5)
Investment, or portion of investment, has been pledged to collateralize the net payment obligations for investments in inverse floating rate transactions.
(6)
MuniFund Term Preferred Shares, at Liquidation Value as a percentage of Total Investments is 29.8%.
(ETM)
Escrowed to maturity.
(IF)
Inverse floating rate investment.
(UB)
Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Note 3 – Portfolio Securities and Investments in Derivatives, Inverse Floating Rate Securities for more information.
 
See accompanying notes to financial statements.
 
24
 
Nuveen Investments

 
 

 
 
NAC
 
 
Nuveen California Dividend Advantage Municipal Fund
 
Portfolio of Investments
 
August 31, 2013 (Unaudited)

 
Principal
     
Optional Call
         
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
   
Value
 
     
Consumer Staples – 7.5% (4.9% of Total Investments)
             
$
540
 
California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Sonoma County Tobacco Securitization Corporation, Series 2005, 4.250%, 6/01/21
 
6/15 at 100.00
BB+
 
$
501,206
 
     
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-1:
             
 
20,615
 
5.750%, 6/01/47
 
6/17 at 100.00
B
   
15,224,796
 
 
2,895
 
5.125%, 6/01/47
 
6/17 at 100.00
B
   
1,939,968
 
 
8,255
 
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-2, 5.300%, 6/01/37
 
6/22 at 100.00
B
   
5,833,148
 
 
32,305
 
Total Consumer Staples
         
23,499,118
 
     
Education and Civic Organizations – 5.4% (3.6% of Total Investments)
             
 
2,500
 
California Educational Facilities Authority, Revenue Bonds, Santa Clara University, Series 2010, 5.000%, 2/01/40
 
2/20 at 100.00
Aa3
   
2,559,125
 
 
290
 
California Educational Facilities Authority, Revenue Bonds, University of Redlands, Series 2005A, 5.000%, 10/01/35
 
10/15 at 100.00
A3
   
290,044
 
 
10,000
 
California Educational Facilities Authority, Revenue Bonds, University of Southern California, Series 2007A, 4.500%, 10/01/33 (UB)
 
10/17 at 100.00
Aa1
   
9,792,400
 
     
California Educational Facilities Authority, Revenue Bonds, University of the Pacific, Series 2006:
             
 
200
 
5.000%, 11/01/21
 
11/15 at 100.00
A2
   
207,428
 
 
265
 
5.000%, 11/01/25
 
11/15 at 100.00
A2
   
270,393
 
 
1,250
 
California Statewide Communities Development Authority, School Facility Revenue Bonds, Alliance College-Ready Public Schools, Series 2011A, 7.000%, 7/01/46
 
7/21 at 100.00
BBB–
   
1,294,725
 
 
565
 
California Statewide Community Development Authority, Revenue Bonds, Notre Dame de Namur University, Series 2003, 6.500%, 10/01/23
 
10/13 at 100.00
N/R
   
565,141
 
 
2,000
 
University of California, General Revenue Bonds, Series 2013AF, 5.000%, 5/15/29
 
5/23 at 100.00
Aa1
   
2,118,180
 
 
17,070
 
Total Education and Civic Organizations
         
17,097,436
 
     
Health Care – 31.1% (20.5% of Total Investments)
             
 
3,815
 
California Health Facilities Financing Authority, Revenue Bonds, Catholic Healthcare West, Series 2008J, 5.625%, 7/01/32
 
7/15 at 100.00
A
   
3,854,371
 
 
1,500
 
California Health Facilities Financing Authority, Revenue Bonds, Cedars-Sinai Medical Center, Series 2009, 5.000%, 8/15/39
 
8/19 at 100.00
A+
   
1,468,995
 
 
1,420
 
California Health Facilities Financing Authority, Revenue Bonds, Rady Children’s Hospital – San Diego, Series 2011, 5.250%, 8/15/41
 
8/21 at 100.00
A+
   
1,426,844
 
 
14,895
 
California Health Facilities Financing Authority, Revenue Bonds, Sutter Health, Series 2007A, 5.250%, 11/15/46 (UB)
 
11/16 at 100.00
AA–
   
14,340,757
 
 
6,530
 
California Health Facilities Financing Authority, Revenue Bonds, Sutter Health, Series 2011B, 6.000%, 8/15/42 (UB)
 
8/20 at 100.00
AA–
   
7,194,232
 
 
1,120
 
California Statewide Communities Development Authority, Revenue Bonds, Adventist Health System West, Series 2005A, 5.000%, 3/01/35
 
3/15 at 100.00
A
   
1,058,658
 
 
2,000
 
California Statewide Communities Development Authority, Revenue Bonds, Kaiser Permanente, Series 2012A, 5.000%, 4/01/42
 
4/22 at 100.00
A+
   
1,924,880
 
 
1,586
 
California Statewide Communities Development Authority, Revenue Bonds, Saint Joseph Health System, Trust 2554, 18.234%, 7/01/47 – AGM Insured (IF)
 
7/18 at 100.00
AA–
   
1,606,364
 
 
5,500
 
California Statewide Communities Development Authority, Revenue Bonds, Sutter Health, Series 2011A, 6.000%, 8/15/42
 
8/20 at 100.00
AA–
   
6,059,460
 
 
3,325
 
California Statewide Communities Development Authority, Revenue Bonds, ValleyCare Health System, Series 2007A, 5.125%, 7/15/31
 
7/17 at 100.00
N/R
   
2,819,866
 

Nuveen Investments
 
25

 
 

 
 
NAC
Nuveen California Dividend Advantage Municipal Fund (continued)
 
Portfolio of Investments August 31, 2013 (Unaudited)

 
Principal
     
Optional Call
         
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
   
Value
 
     
Health Care (continued)
             
     
California Statewide Community Development Authority, Revenue Bonds, Daughters of Charity Health System, Series 2005A:
             
$
1,760
 
5.250%, 7/01/24
 
7/15 at 100.00
BBB–
 
$
1,792,226
 
 
3,870
 
5.250%, 7/01/30
 
7/15 at 100.00
BBB–
   
3,882,113
 
 
150
 
5.250%, 7/01/35
 
7/15 at 100.00
BBB–
   
149,507
 
 
10,140
 
California Statewide Community Development Authority, Revenue Bonds, Kaiser Permanante System, Series 2006, 5.000%, 3/01/41
 
3/16 at 100.00
A+
   
9,780,334
 
 
3,095
 
California Statewide Community Development Authority, Revenue Bonds, Kaiser Permanente System, Series 2001C, 5.250%, 8/01/31
 
8/16 at 100.00
A+
   
3,119,389
 
 
9,980
 
California Statewide Community Development Authority, Revenue Bonds, Kaiser Permanente System, Series 2006, 5.000%, 3/01/41 – BHAC Insured (UB)
 
3/16 at 100.00
AA+
   
9,950,359
 
 
2,010
 
California Statewide Community Development Authority, Revenue Bonds, Methodist Hospital Project, Series 2009, 6.750%, 2/01/38
 
8/19 at 100.00
Aa2
   
2,319,399
 
 
5,000
 
California Statewide Community Development Authority, Revenue Bonds, Sutter Health, Series 2008B, 5.250%, 11/15/48
 
5/18 at 100.00
AA–
   
4,832,800
 
 
1,000
 
Loma Linda, California, Hospital Revenue Bonds, Loma Linda University Medical Center, Series 2005A, 5.000%, 12/01/23
 
12/15 at 100.00
BBB
   
985,540
 
 
2,860
 
Loma Linda, California, Hospital Revenue Bonds, Loma Linda University Medical Center, Series 2008A, 8.250%, 12/01/38
 
12/17 at 100.00
BBB
   
3,100,755
 
 
1,000
 
Madera County, California, Certificates of Participation, Children’s Hospital Central California, Series 2010, 5.375%, 3/15/36
 
3/20 at 100.00
A+
   
996,090
 
 
675
 
Oak Valley Hospital District, Stanislaus County, California, Revenue Bonds, Series 2010A, 6.500%, 11/01/29
 
11/20 at 100.00
BB+
   
659,435
 
 
5,450
 
Palomar Pomerado Health Care District, California, Certificates of Participation, Series 2010, 6.000%, 11/01/41
 
11/20 at 100.00
Baa3
   
5,200,663
 
 
2,570
 
Rancho Mirage Joint Powers Financing Authority, California, Revenue Bonds, Eisenhower Medical Center, Series 2007A, 5.000%, 7/01/38
 
7/17 at 100.00
Baa2
   
2,337,107
 
 
3,500
 
San Buenaventura, California, Revenue Bonds, Community Memorial Health System, Series 2011, 7.500%, 12/01/41
 
12/21 at 100.00
BB
   
3,778,250
 
 
3,000
 
Santa Clara County Financing Authority, California, Insured Revenue Bonds, El Camino Hospital, Series 2007A, 5.750%, 2/01/41 – AMBAC Insured
 
8/17 at 100.00
A+
   
3,083,880
 
 
97,751
 
Total Health Care
         
97,722,274
 
     
Housing/Multifamily – 2.2% (1.4% of Total Investments)
             
 
1,985
 
California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects Series 2010A, 6.400%, 8/15/45
 
8/20 at 100.00
BBB
   
2,040,679
 
 
4,600
 
California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects Series 2012A, 5.125%, 8/15/32
 
8/22 at 100.00
BBB
   
4,419,312
 
 
320
 
Independent Cities Lease Finance Authority, California, Mobile Home Park Revenue Bonds, San Juan Mobile Estates, Series 2006B, 5.850%, 5/15/41
 
5/16 at 100.00
N/R
   
299,619
 
 
6,905
 
Total Housing/Multifamily
         
6,759,610
 
     
Housing/Single Family – 0.6% (0.4% of Total Investments)
             
 
225
 
California Housing Finance Agency, Home Mortgage Revenue Bonds, Series 2006H, 5.750%, 8/01/30 – FGIC Insured (Alternative Minimum Tax)
 
2/16 at 100.00
BBB
   
235,085
 
 
2,395
 
California Housing Finance Agency, Home Mortgage Revenue Bonds, Tender Option Bond Trust 3206, 8.413%, 2/01/29 (Alternative Minimum Tax) (IF)
 
2/17 at 100.00
BBB
   
1,528,896
 
 
2,620
 
Total Housing/Single Family
         
1,763,981
 
     
Industrials – 0.0% (0.0% of Total Investments)
             
 
5,120
 
California Statewide Communities Development Authority, Revenue Bonds, EnerTech Regional Biosolids Project, Series 2007A, 5.500%, 12/01/33 (Alternative Minimum Tax) (4)
 
No Opt. Call
D
   
57,498
 
     
Long-Term Care – 0.4% (0.2% of Total Investments)
             
 
1,000
 
California Municipal Finance Authority, Revenue Bonds, Harbor Regional Center Project, Series 2009, 8.000%, 11/01/29
 
11/19 at 100.00
Baa1
   
1,146,910
 

26
 
Nuveen Investments

 
 

 
 
 
Principal
     
Optional Call
         
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
   
Value
 
     
Tax Obligation/General – 30.0% (19.8% of Total Investments)
             
$
3,000
 
Alhambra Unified School District, Los Angeles County, California, General Obligation Bonds, Refunding Series 2012A, 5.000%, 8/01/29 – AGM Insured
 
8/22 at 100.00
Aa3
 
$
3,093,510
 
     
Alvord Unified School District, Riverside County, California, General Obligation Bonds, 2007 Election Series 2011B:
             
 
21,000
 
0.000%, 8/01/41 – AGM Insured
 
No Opt. Call
AA–
   
3,810,870
 
 
16,840
 
0.000%, 8/01/43 – AGM Insured
 
No Opt. Call
AA–
   
2,701,473
 
 
2,500
 
California State, General Obligation Bonds, Various Purpose Refunding Series 2012, 5.000%, 9/01/42
 
No Opt. Call
A1
   
2,492,400
 
 
2,000
 
California State, General Obligation Bonds, Various Purpose Refunding Series 2013, 5.000%, 2/01/29
 
No Opt. Call
A1
   
2,083,820
 
 
10,000
 
California State, General Obligation Bonds, Various Purpose Series 2009, 6.000%, 11/01/39
 
11/19 at 100.00
A1
   
11,164,300
 
     
California State, General Obligation Bonds, Various Purpose Series 2010:
             
 
5,000
 
6.000%, 3/01/33
 
3/20 at 100.00
A1
   
5,637,750
 
 
8,000
 
5.500%, 3/01/40
 
3/20 at 100.00
A1
   
8,278,000
 
 
1,000
 
5.250%, 11/01/40
 
11/20 at 100.00
A1
   
1,015,440
 
     
California State, General Obligation Bonds, Various Purpose Series 2011:
             
 
5,000
 
5.250%, 10/01/28
 
No Opt. Call
A1
   
5,349,550
 
 
2,000
 
5.000%, 9/01/31
 
No Opt. Call
A1
   
2,065,220
 
 
4,330
 
5.000%, 10/01/41
 
10/21 at 100.00
A1
   
4,316,837
 
 
4,435
 
California State, General Obligation Refunding Bonds, Series 2002, 6.000%, 4/01/16 – AMBAC Insured
 
No Opt. Call
A1
   
5,040,954
 
 
3,425
 
Coast Community College District, Orange County, California, General Obligation Bonds, Series 2006C, 5.000%, 8/01/31 – AGM Insured
 
8/18 at 100.00
Aa1
   
3,516,413
 
 
5,150
 
Hacienda La Puente Unified School District Facilities Financing Authority, California, General Obligation Revenue Bonds, Series 2007, 5.000%, 8/01/26 – AGM Insured
 
No Opt. Call
AA–
   
5,453,644
 
 
3,000
 
Los Angeles Unified School District, California, General Obligation Bonds, Series 2005A-2, 5.000%, 7/01/24 – NPFG Insured
 
7/15 at 100.00
Aa2
   
3,206,670
 
 
5,210
 
Oak Valley Hospital District, Stanislaus County, California, General Obligation Bonds, Series 2005, 5.000%, 7/01/35 – FGIC Insured
 
7/14 at 101.00
A2
   
5,244,594
 
 
4,000
 
San Diego Community College District, California, General Obligation Bonds, Refunding Series 2011, 5.000%, 8/01/41
 
8/21 at 100.00
AA+
   
4,075,800
 
 
50,070
 
Yosemite Community College District, California, General Obligation Bonds, Capital Appreciation, Election 2004, Series 2010D, 0.000%, 8/01/42
 
No Opt. Call
Aa2
   
15,624,844
 
 
155,960
 
Total Tax Obligation/General
         
94,172,089
 
     
Tax Obligation/Limited – 42.7% (28.1% of Total Investments)
             
     
Beaumont Financing Authority, California, Local Agency Revenue Bonds, Series 2004D:
             
 
1,000
 
5.500%, 9/01/24
 
9/14 at 102.00
N/R
   
1,013,920
 
 
615
 
5.800%, 9/01/35
 
9/14 at 102.00
N/R
   
609,717
 
 
1,910
 
Borrego Water District, California, Community Facilities District 2007-1 Montesoro, Special Tax Bonds, Series 2007, 5.750%, 8/01/25 (4)
 
8/17 at 102.00
N/R
   
504,737
 
 
1,000
 
California State Public Works Board, Lease Revenue Bonds, Various Capital Projects, Series 2009G-1, 5.750%, 10/01/30
 
10/19 at 100.00
A2
   
1,074,670
 
 
2,000
 
California State Public Works Board, Lease Revenue Bonds, Various Capital Projects, Series 2009-I, 6.375%, 11/01/34
 
11/19 at 100.00
A2
   
2,303,080
 
 
710
 
Capistrano Unified School District, Orange County, California, Special Tax Bonds, Community Facilities District, Series 2005, 5.000%, 9/01/24 – FGIC Insured
 
9/15 at 100.00
A
   
713,152
 
 
2,905
 
Carson Redevelopment Agency, California, Redevelopment Project Area 1 Tax Allocation Bonds, Series 2009A, 7.000%, 10/01/36
 
10/19 at 100.00
A–
   
3,180,975
 
 
1,225
 
Chino Redevelopment Agency, California, Merged Chino Redevelopment Project Area Tax Allocation Bonds, Series 2006, 5.000%, 9/01/38 – AMBAC Insured
 
9/16 at 101.00
A–
   
1,131,373
 
 
1,480
 
Commerce Joint Power Financing Authority, California, Tax Allocation Bonds, Redevelopment Projects 2 and 3, Refunding Series 2003A, 5.000%, 8/01/28 – RAAI Insured
 
2/14 at 100.00
BBB
   
1,381,698
 
 
1,040
 
Dinuba Redevelopment Agency, California, Tax Allocation Bonds, Merged City of Dinuba Redevelopment Project and Dinuba Redevelopment Project 2, As Amended, Refunding Series 2001, 5.000%, 9/01/31 – NPFG Insured
 
3/14 at 100.00
A
   
946,712
 

Nuveen Investments
 
27
 
 
 

 

NAC
Nuveen California Dividend Advantage Municipal Fund (continued)
 
Portfolio of Investments August 31, 2013 (Unaudited)

 
Principal
     
Optional Call
         
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
   
Value
 
     
Tax Obligation/Limited (continued)
             
$
1,430
 
Fontana Redevelopment Agency, California, Jurupa Hills Redevelopment Project, Tax Allocation Refunding Bonds, 1997 Series A, 5.500%, 10/01/27
 
10/13 at 100.00
A–
 
$
1,429,914
 
 
2,890
 
Fontana, California, Senior Special Tax Refunding Bonds, Heritage Village Community Facilities District 2, Series 1998A, 5.250%, 9/01/17 – NPFG Insured
 
3/14 at 100.00
A
   
2,927,050
 
 
1,125
 
Fontana, California, Special Tax Bonds, Sierra Community Facilities District 22, Series 2004, 6.000%, 9/01/34
 
9/14 at 100.00
N/R
   
1,128,780
 
 
1,000
 
Fullerton Community Facilities District 1, California, Special Tax Bonds, Amerige Heights, Refunding Series 2012, 5.000%, 9/01/32
 
9/22 at 100.00
A–
   
965,500
 
 
3,980
 
Garden Grove, California, Certificates of Participation, Financing Project, Series 2002A, 5.500%, 3/01/22 – AMBAC Insured
 
3/14 at 100.00
A
   
4,015,780
 
 
1,000
 
Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2013A, 5.000%, 6/01/30
 
6/23 at 100.00
A2
   
994,310
 
 
31,090
 
Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A, 5.000%, 6/01/35 – FGIC Insured
 
6/15 at 100.00
AA–
   
30,401,976
 
 
2,850
 
Hesperia Community Redevelopment Agency, California, Tax Allocation Bonds, Series 2005A, 5.000%, 9/01/35 – SYNCORA GTY Insured
 
9/15 at 100.00
BB+
   
2,385,393
 
 
1,500
 
Hesperia Unified School District, San Bernardino County, California, Certificates of Participation, Series 2013A, 5.000%, 2/01/38 – BAM Insured
 
2/23 at 100.00
AA
   
1,424,910
 
 
4,500
 
Inglewood Redevelopment Agency, California, Tax Allocation Bonds, Merged Redevelopment Project, Refunding Series 1998A, 5.250%, 5/01/23 – AMBAC Insured
 
No Opt. Call
N/R
   
4,626,810
 
 
1,285
 
Inglewood Redevelopment Agency, California, Tax Allocation Bonds, Merged Redevelopment Project, Subordinate Lien Series 2007A-1, 5.000%, 5/01/25 – AMBAC Insured
 
5/17 at 100.00
BB+
   
1,230,645
 
     
Irvine Unified School District, California, Special Tax Bonds, Community Facilities District Series 2006A:
             
 
325
 
5.000%, 9/01/26
 
9/16 at 100.00
N/R
   
320,119
 
 
755
 
5.125%, 9/01/36
 
9/16 at 100.00
N/R
   
709,866
 
 
675
 
Lammersville School District, San Joaquin County, California, Special Tax Bonds, Community Facilities District 2002 Mountain House, Series 2006, 5.125%, 9/01/35
 
9/16 at 100.00
N/R
   
598,104
 
 
1,000
 
Lindsay Redevelopment Agency, California, Project 1 Tax Allocation Bonds, Series 2007, 5.000%, 8/01/37 – RAAI Insured
 
8/17 at 100.00
BBB+
   
884,210
 
 
2,290
 
Los Angeles Community Redevelopment Agency, California, Lease Revenue Bonds, Manchester Social Services Project, Series 2005, 5.000%, 9/01/37 – AMBAC Insured
 
9/15 at 100.00
A1
   
2,310,175
 
 
1,650
 
Los Angeles County Public Works Financing Authority, California, Lease Revenue Bonds, Multiple Capital Facilities Project II, Series 2012, 5.000%, 8/01/42
 
No Opt. Call
AA–
   
1,579,463
 
 
1,530
 
Moreno Valley Unified School District, Riverside County, California, Certificates of Participation, Series 2005, 5.000%, 3/01/24 – AGM Insured
 
3/14 at 100.00
AA–
   
1,561,227
 
 
3,500
 
Murrieta Redevelopment Agency, California, Tax Allocation Bonds, Series 2007A, 5.000%, 8/01/37 – NPFG Insured
 
8/17 at 100.00
A
   
3,264,170
 
 
695
 
National City Community Development Commission, California, Tax Allocation Bonds, National City Redevelopment Project, Series 2011, 6.500%, 8/01/24
 
8/21 at 100.00
A–
   
805,693
 
 
9,200
 
Norco Redevelopment Agency, California, Tax Allocation Refunding Bonds, Project Area 1, Series 2001, 5.000%, 3/01/19 – NPFG Insured
 
9/13 at 100.00
A
   
9,218,952
 
 
240
 
North Natomas Community Facilities District 4, Sacramento, California, Special Tax Bonds, Series 2006D, 5.000%, 9/01/33
 
9/14 at 102.00
N/R
   
225,828
 
 
260
 
Novato Redevelopment Agency, California, Tax Allocation Bonds, Hamilton Field Redevelopment Project, Series 2011, 6.750%, 9/01/40
 
9/21 at 100.00
BBB+
   
276,406
 
 
3,290
 
Oakland Redevelopment Agency, California, Subordinate Lien Tax Allocation Bonds, Central District Redevelopment Project, Series 2003, 5.500%, 9/01/16 – FGIC Insured
 
9/13 at 100.00
A
   
3,300,232
 
 
1,000
 
Palmdale Community Redevelopment Agency, California, Tax Allocation Bonds, Merged Redevelopment Project Areas, Series 2004, 5.000%, 12/01/24 – AMBAC Insured
 
12/14 at 100.00
A–
   
1,010,950
 
     
Patterson Public Finance Authority, California, Revenue Bonds, Community Facilities District 2001-1, Senior Series 2013A:
             
 
1,820
 
5.250%, 9/01/30
 
9/23 at 100.00
N/R
   
1,744,943
 
 
1,635
 
5.750%, 9/01/39
 
9/23 at 100.00
N/R
   
1,587,798
 

28
 
Nuveen Investments
 
 
 

 

 
Principal
     
Optional Call
         
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
   
Value
 
     
Tax Obligation/Limited (continued)
             
$
300
 
Patterson Public Finance Authority, California, Revenue Bonds, Community Facilities District 2001-1, Subordinate Lien Series 2013B , 5.875%, 9/01/39
 
9/23 at 100.00
N/R
 
$
288,609
 
     
Perris Union High School District Financing Authority, Riverside County, California, Revenue Bonds, Series 2011:
             
 
245
 
6.000%, 9/01/33
 
9/13 at 100.00
N/R
   
245,926
 
 
530
 
6.125%, 9/01/41
 
9/13 at 100.00
N/R
   
526,142
 
 
8,250
 
Pico Rivera Water Authority, California, Revenue Bonds, Series 2001A, 6.250%, 12/01/32
 
12/13 at 100.00
N/R
   
8,250,743
 
 
2,130
 
Pittsburg Redevelopment Agency, California, Tax Allocation Bonds, Los Medanos Community Development Project, Refunding Series 2008A, 6.500%, 9/01/28
 
9/18 at 100.00
BBB–
   
2,176,817
 
 
1,570
 
Poway Redevelopment Agency, California, Tax Allocation Refunding Bonds, Paguay Redevelopment Project, Series 2000, 5.750%, 6/15/33 – NPFG Insured
 
3/14 at 100.00
A
   
1,512,412
 
 
2,000
 
Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, First Subordinate Series 2009A, 0.000%, 8/01/32
 
8/26 at 100.00
A+
   
1,655,580
 
 
845
 
Rancho Santa Fe CSD Financing Authority, California, Revenue Bonds, Superior Lien Series 2011A, 5.750%, 9/01/30
 
9/21 at 100.00
BBB+
   
882,417
 
 
150
 
Riverside County Redevelopment Agency, California, Tax Allocation Bonds, Jurupa Valley Project Area, Series 2011B, 6.500%, 10/01/25
 
10/21 at 100.00
A–
   
163,506
 
 
1,860
 
Riverside Redevelopment Agency, California, Tax Allocation Refunding Bonds, Merged Project Areas, Series 2003, 5.250%, 8/01/22 – NPFG Insured
 
2/14 at 100.00
A
   
1,865,971
 
 
2,500
 
Sacramento City Financing Authority, California, Lease Revenue Refunding Bonds, Series 1993A, 5.400%, 11/01/20 – AMBAC Insured
 
No Opt. Call
A
   
2,794,050
 
 
1,000
 
San Francisco Redevelopment Finance Authority, California, Tax Allocation Revenue Bonds, Mission Bay North Redevelopment Project, Series 2009C, 6.500%, 8/01/39
 
8/19 at 100.00
A–
   
1,082,370
 
 
120
 
San Francisco Redevelopment Finance Authority, California, Tax Allocation Revenue Bonds, Mission Bay North Redevelopment Project, Series 2011C, 6.750%, 8/01/41
 
2/21 at 100.00
A–
   
131,555
 
     
San Francisco Redevelopment Financing Authority, California, Tax Allocation Revenue Bonds, Mission Bay South Redevelopment Project, Series 2011D:
             
 
125
 
7.000%, 8/01/33
 
2/21 at 100.00
BBB
   
134,160
 
 
155
 
7.000%, 8/01/41
 
2/21 at 100.00
BBB
   
163,925
 
 
1,000
 
San Jose Redevelopment Agency, California, Housing Set-Aside Tax Allocation Bonds, Merged Area Redevelopment Project, Series 2010A-1, 5.500%, 8/01/35
 
8/20 at 100.00
A
   
1,007,960
 
 
1,000
 
San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment Project, Series 2005A, 5.000%, 8/01/27 – NPFG Insured
 
8/15 at 100.00
A
   
999,960
 
     
San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment Project, Series 2006C:
             
 
1,100
 
5.000%, 8/01/24 – NPFG Insured
 
8/17 at 100.00
A
   
1,100,341
 
 
1,235
 
5.000%, 8/01/25 – NPFG Insured
 
8/17 at 100.00
A
   
1,224,021
 
 
5,000
 
Santa Ana Community Redevelopment Agency, California, Tax Allocation Bonds, Merged Project Area, Series 2011A, 6.750%, 9/01/28
 
3/21 at 100.00
A+
   
5,640,100
 
 
205
 
Signal Hill Redevelopment Agency, California, Project 1 Tax Allocation Bonds, Series 2011, 7.000%, 10/01/26
 
4/21 at 100.00
N/R
   
210,676
 
 
1,200
 
Turlock Public Financing Authority, California, Tax Allocation Revenue Bonds, Series 2011, 7.500%, 9/01/39
 
3/21 at 100.00
BBB+
   
1,257,204
 
 
1,000
 
Washington Unified School District, Yolo County, California, Certificates of Participation, Series 2007, 5.125%, 8/01/37 – AMBAC Insured
 
8/17 at 100.00
A
   
1,002,240
 
 
5,000
 
Westminster Redevelopment Agency, California, Tax Allocation Bonds, Commercial Redevelopment Project 1, Police Facility Subordinate Series 2009, 6.250%, 11/01/39
 
11/19 at 100.00
AA–
   
5,462,200
 
     
Yorba Linda Redevelopment Agency, Orange County, California, Tax Allocation Revenue Bonds, Yorba Linda Redevelopment Project, Subordinate Lien Series 2011A:
             
 
150
 
6.000%, 9/01/26
 
9/21 at 100.00
A–
   
160,986
 
 
210
 
6.500%, 9/01/32
 
9/21 at 100.00
A–
   
231,149
 
 
135,280
 
Total Tax Obligation/Limited
         
133,960,258
 
     
Transportation – 3.7% (2.5% of Total Investments)
             
 
11,150
 
Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Refunding Bonds, Series 1999, 5.750%, 1/15/40
 
1/14 at 100.00
BBB–
   
10,365,263
 

Nuveen Investments
 
29


 
 

 
 
NAC
Nuveen California Dividend Advantage Municipal Fund (continued)
 
Portfolio of Investments August 31, 2013 (Unaudited)

 
Principal
     
Optional Call
         
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
   
Value
 
     
Transportation (continued)
             
$
1,250
 
Los Angeles Department of Airports, California, Revenue Bonds, Los Angeles International Airport, Senior Lien Series 2010D, 5.000%, 5/15/40 (UB) (5)
 
5/20 at 100.00
AA
 
$
1,254,850
 
 
120
 
Palm Springs Financing Authority, California, Palm Springs International Airport Revenue Bonds, Series 2006, 5.450%, 7/01/20 (Alternative Minimum Tax)
 
7/14 at 102.00
N/R
   
118,711
 
 
12,520
 
Total Transportation
         
11,738,824
 
     
U.S. Guaranteed – 6.7% (4.4% of Total Investments) (6)
             
 
1,430
 
Bay Area Toll Authority, California, Revenue Bonds, San Francisco Bay Area Toll Bridge, Series 2006F, 5.000%, 4/01/31 (Pre-refunded 4/01/16) (UB)
 
4/16 at 100.00
AA (6)
   
1,588,673
 
 
4,685
 
California State Public Works Board, Lease Revenue Bonds, University of California Regents, Tender Option Bond Trust 1065, 9.261%, 3/01/33 (Pre-refunded 3/01/18) (IF)
 
3/18 at 100.00
Aa2 (6)
   
4,813,088
 
 
655
 
California Statewide Community Development Authority, Revenue Bonds, Thomas Jefferson School of Law, Series 2005A, 4.875%, 10/01/31 (Pre-refunded 10/01/15)
 
10/15 at 100.00
N/R (6)
   
701,472
 
 
3,630
 
Imperial Irrigation District, California, Certificates of Participation, Electric System Revenue Bonds, Series 2003, 5.250%, 11/01/23 (Pre-refunded 11/01/13) – AGM Insured
 
11/13 at 100.00
AA– (6)
   
3,661,182
 
 
1,725
 
Newport Beach, California, Revenue Bonds, Hoag Memorial Hospital Presbyterian, Series 2011A, 6.000%, 12/01/40 (Pre-refunded 12/01/21)
 
12/21 at 100.00
AA (6)
   
2,169,308
 
 
5,840
 
Orange County Water District, California, Revenue Certificates of Participation, Series 1999A, 5.375%, 8/15/29 (ETM)
 
No Opt. Call
N/R (6)
   
6,875,257
 
 
575
 
Roseville Joint Union High School District, Placer County, California, General Obligation Bonds, Series 2006B, 5.000%, 8/01/27 (Pre-refunded 8/01/15) – FGIC Insured
 
8/15 at 100.00
AA (6)
   
625,790
 
 
600
 
West Patterson Financing Authority, California, Special Tax Bonds, Community Facilities District 01-1, Refunding Series 2009A, 8.625%, 9/01/39 (Pre-refunded 9/01/14)
 
9/14 at 105.00
N/R (6)
   
680,208
 
 
19,140
 
Total U.S. Guaranteed
         
21,114,978
 
     
Utilities – 6.0% (3.9% of Total Investments)
             
 
3,775
 
Long Beach Bond Finance Authority, California, Natural Gas Purchase Revenue Bonds, Series 2007A, 5.000%, 11/15/35
 
No Opt. Call
A
   
3,565,827
 
 
5,500
 
Los Angeles Department of Water and Power, California, Power System Revenue Bonds, Series 2005A-1, 5.000%, 7/01/31 – AGM Insured (UB)
 
7/15 at 100.00
AA–
   
5,740,625
 
 
2,355
 
Los Angeles Department of Water and Power, California, Power System Revenue Bonds, Series 2013B, 5.000%, 7/01/28
 
7/23 at 100.00
AA–
   
2,525,031
 
 
3,000
 
Los Angeles Department of Water and Power, California, Power System Revenue Bonds, Tender Option Bond Trust 3345, 18.033%, 7/01/20 (IF) (5)
 
No Opt. Call
AA–
   
3,127,320
 
 
1,270
 
Merced Irrigation District, California, Electric System Revenue Bonds, Series 2005, 5.125%, 9/01/31 – SYNCORA GTY Insured
 
9/15 at 100.00
N/R
   
1,253,109
 
 
2,500
 
Sacramento Municipal Utility District, California, Electric Revenue Bonds, Tender Option Bond Trust 1186, 17.265%, 8/15/41 (IF) (5)
 
8/23 at 100.00
AA–
   
2,538,700
 
 
18,400
 
Total Utilities
         
18,750,612
 
     
Water and Sewer – 15.6% (10.3% of Total Investments)
             
     
Bay Area Water Supply and Conservation Agency, California, Revenue Bonds, Capital Cost Recovery Prepayment Program, Series 2013A:
             
 
2,000
 
5.000%, 10/01/29
 
4/23 at 100.00
AA–
   
2,107,360
 
 
2,100
 
5.000%, 10/01/34
 
4/23 at 100.00
AA–
   
2,154,621
 
     
California Pollution Control Financing Authority, Water Furnishing Revenue Bonds, Poseidon Resources Channelside Desalination Project, Series 2012:
             
 
1,265
 
5.000%, 7/01/37 (Alternative Minimum Tax)
 
No Opt. Call
Baa3
   
1,027,344
 
 
6,475
 
5.000%, 11/21/45 (Alternative Minimum Tax)
 
No Opt. Call
Baa3
   
5,084,105
 
 
875
 
Healdsburg Public Financing Authority, California, Wastewater Revenue Bonds, Series 2006, 5.000%, 4/01/36 – NPFG Insured
 
4/16 at 100.00
AA–
   
876,015
 
 
2,500
 
Indio Water Authority, California, Water Revenue Bonds, Series 2006, 5.000%, 4/01/31 – AMBAC Insured
 
4/16 at 100.00
A
   
2,539,800
 
 
9,955
 
Los Angeles Department of Water and Power, California, Waterworks Revenue Bonds, Series 2011A, 5.250%, 7/01/39 (UB)
 
1/21 at 100.00
AA
   
10,359,671
 

30
 
Nuveen Investments
 
 
 

 

 
Principal
     
Optional Call
         
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
   
Value
 
     
Water and Sewer (continued)
             
$
835
 
Marina Coast Water District, California, Enterprise Certificate of Participation, Series 2006, 5.000%, 6/01/31 – NPFG Insured
 
6/16 at 100.00
AA–
 
$
838,340
 
 
2,250
 
Sacramento County Sanitation District Financing Authority, California, Revenue Bonds, Series 2006, 5.000%, 12/01/31 – FGIC Insured
 
6/16 at 100.00
AA
   
2,305,890
 
 
11,000
 
San Diego Public Facilities Financing Authority, California, Sewerage Revenue Bonds, Refunding Series 2010A, 5.250%, 5/15/26
 
5/20 at 100.00
AA
   
12,105,610
 
 
5,580
 
San Francisco City and County Public Utilities Commission, California, Water Revenue Bonds, Series 2011A, 5.000%, 11/01/41 (UB)
 
11/21 at 100.00
AA–
   
5,643,054
 
     
San Francisco City and County Public Utilities Commission, California, Water Revenue Bonds, Tender Option Bond Trust 2013-4A:
             
 
750
 
17.998%, 11/01/28 (IF)
 
11/21 at 100.00
AA–
   
937,800
 
 
750
 
18.098%, 11/01/43 (IF)
 
5/22 at 100.00
AA–
   
787,710
 
 
2,000
 
West Basin Municipal Water District, California, Certificates of Participation, Refunding Series 2008B, 5.000%, 8/01/28 – AGC Insured
 
8/18 at 100.00
AA–
   
2,079,580
 
 
48,335
 
Total Water and Sewer
         
48,846,900
 
$
552,406
 
Total Investments (cost $479,975,881) – 151.9%
         
476,630,488
 
     
Floating Rate Obligations – (13.8)%
         
(43,400,000
)
     
Variable Rate Demand Preferred Shares, at Liquidation Value – (43.4)% (7)
         
(136,200,000
)
     
Other Assets Less Liabilities – 5.3%
         
16,724,140
 
     
Net Assets Applicable to Common Shares – 100%
       
$
313,754,628
 
 
(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: 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: Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies.
(4)
At or subsequent to the end of the reporting period, this security is non-income producing. Non-income producing, in the case of a fixed-income security, generally denotes that the issuer has (1) defaulted on the payment of principal or interest, (2) is under the protection of the Federal Bankruptcy Court or (3) the Fund’s Adviser has concluded that the issue is not likely to meet its future interest payment obligations and has directed the Fund’s custodian to cease accruing additional income on the Fund’s records.
(5)
Investment, or portion of investment, has been pledged to collateralize the net payment obligations for investments in inverse floating rate transactions.
(6)
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. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities.
(7)
Variable Rate Demand Preferred Shares, at Liquidation Value as a percentage of Total Investments is 28.6%.
(ETM)
Escrowed to maturity.
(IF)
Inverse floating rate investment.
(UB)
Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Note 3 – Portfolio Securities and Investments in Derivatives, Inverse Floating Rate Securities for more information.
 
See accompanying notes to financial statements.

Nuveen Investments
 
31

 
 

 
 
NVX
 
 
Nuveen California Dividend Advantage Municipal Fund 2
 
Portfolio of Investments
 
August 31, 2013 (Unaudited)

 
Principal
     
Optional Call
         
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
   
Value
 
     
Consumer Staples – 7.9% (5.4% of Total Investments)
             
$
330
 
California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Sonoma County Tobacco Securitization Corporation, Series 2005, 4.250%, 6/01/21
 
6/15 at 100.00
BB+
 
$
306,293
 
 
2,775
 
California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Stanislaus County Tobacco Funding Corporation, Series 2002A, 5.500%, 6/01/33
 
12/13 at 100.00
Baa1
   
2,784,407
 
     
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-1:
             
 
12,540
 
5.750%, 6/01/47
 
6/17 at 100.00
B
   
9,261,166
 
 
1,270
 
5.125%, 6/01/47
 
6/17 at 100.00
B
   
851,040
 
 
3,660
 
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-2, 5.300%, 6/01/37
 
6/22 at 100.00
B
   
2,586,229
 
 
20,575
 
Total Consumer Staples
         
15,789,135
 
     
Education and Civic Organizations – 5.4% (3.7% of Total Investments)
             
 
1,775
 
ABAG Finance Authority for Non-Profit Corporations, California, Revenue Bonds, The Jackson Laboratory, Series 2012, 5.000%, 7/01/37
 
7/22 at 100.00
A1
   
1,748,144
 
 
2,745
 
California Educational Facilities Authority, Revenue Bonds, University of Southern California, Tender Option Bond Trust 09-11B, 17.670%, 10/01/38 (IF) (4)
 
10/18 at 100.00
Aa1
   
2,900,861
 
     
California Educational Facilities Authority, Revenue Bonds, University of the Pacific, Series 2006:
             
 
125
 
5.000%, 11/01/21
 
11/15 at 100.00
A2
   
129,643
 
 
165
 
5.000%, 11/01/25
 
11/15 at 100.00
A2
   
168,358
 
 
1,915
 
California Educational Facilities Authority, Student Loan Revenue Bonds, Cal Loan Program, Series 2001A, 5.400%, 3/01/21 – NPFG Insured (Alternative Minimum Tax)
 
3/14 at 100.00
Baa1
   
1,916,341
 
 
2,500
 
California Municipal Finance Authority, Revenue Bonds, University of La Verne, Series 2010A, 6.250%, 6/01/40
 
6/20 at 100.00
BBB+
   
2,571,675
 
 
850
 
California Statewide Communities Development Authority, School Facility Revenue Bonds, Alliance College-Ready Public Schools, Series 2011A, 7.000%, 7/01/46
 
7/21 at 100.00
BBB–
   
880,413
 
 
565
 
California Statewide Community Development Authority, Revenue Bonds, Notre Dame de Namur University, Series 2003, 6.500%, 10/01/23
 
10/13 at 100.00
N/R
   
565,141
 
 
10,640
 
Total Education and Civic Organizations
         
10,880,576
 
     
Health Care – 27.5% (18.8% of Total Investments)
             
 
2,500
 
California Health Facilities Financing Authority, Revenue Bonds, Catholic Healthcare West, Series 2008J, 5.625%, 7/01/32
 
7/15 at 100.00
A
   
2,525,800
 
 
895
 
California Health Facilities Financing Authority, Revenue Bonds, Rady Children’s Hospital – San Diego, Series 2011, 5.250%, 8/15/41
 
8/21 at 100.00
A+
   
899,314
 
 
9,260
 
California Health Facilities Financing Authority, Revenue Bonds, Sutter Health, Series 2007A, 5.250%, 11/15/46 (UB)
 
11/16 at 100.00
AA–
   
8,915,435
 
 
4,215
 
California Municipal Financing Authority, Certificates of Participation, Community Hospitals of Central California, Series 2007, 5.250%, 2/01/27
 
2/17 at 100.00
BBB
   
4,234,853
 
 
2,520
 
California Statewide Communities Development Authority, Revenue Bonds, Adventist Health System West, Series 2005A, 5.000%, 3/01/35
 
3/15 at 100.00
A
   
2,381,980
 
 
3,200
 
California Statewide Communities Development Authority, Revenue Bonds, Kaiser Permanente, Series 2012A, 5.000%, 4/01/42
 
4/22 at 100.00
A+
   
3,079,808
 
     
California Statewide Communities Development Authority, Revenue Bonds, Saint Joseph Health System, Trust 2554:
             
 
1,325
 
18.201%, 7/01/47 – AGM Insured (IF)
 
7/18 at 100.00
AA–
   
1,314,201
 
 
998
 
18.234%, 7/01/47 – AGM Insured (IF)
 
7/18 at 100.00
AA–
   
1,010,308
 
 
2,225
 
California Statewide Communities Development Authority, Revenue Bonds, ValleyCare Health System, Series 2007A, 5.125%, 7/15/31
 
7/17 at 100.00
N/R
   
1,886,978
 
 
5,250
 
California Statewide Community Development Authority, Revenue Bonds, Daughters of Charity Health System, Series 2005A, 5.250%, 7/01/35
 
7/15 at 100.00
BBB–
   
5,232,728
 

32
 
Nuveen Investments
 
 
 

 

 
Principal
     
Optional Call
         
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
   
Value
 
     
Health Care (continued)
             
$
425
 
California Statewide Community Development Authority, Revenue Bonds, Kaiser Permanente System, Series 2001C, 5.250%, 8/01/31
 
8/16 at 100.00
A+
 
$
428,349
 
 
1,035
 
California Statewide Community Development Authority, Revenue Bonds, Sutter Health, Series 2004D, 5.050%, 8/15/38 – AGM Insured
 
8/18 at 100.00
AA
   
1,013,410
 
     
California Statewide Community Development Authority, Revenue Bonds, Sutter Health, Series 2005A:
             
 
2,705
 
5.000%, 11/15/43
 
11/15 at 100.00
AA–
   
2,575,376
 
 
3,315
 
5.000%, 11/15/43 (UB) (4)
 
11/15 at 100.00
AA–
   
3,156,145
 
 
2,000
 
Loma Linda, California, Hospital Revenue Bonds, Loma Linda University Medical Center, Series 2008A, 8.250%, 12/01/38
 
12/17 at 100.00
BBB
   
2,168,360
 
 
1,610
 
Madera County, California, Certificates of Participation, Children’s Hospital Central California, Series 2010, 5.375%, 3/15/36
 
3/20 at 100.00
A+
   
1,603,705
 
 
455
 
Oak Valley Hospital District, Stanislaus County, California, Revenue Bonds, Series 2010A, 6.500%, 11/01/29
 
11/20 at 100.00
BB+
   
444,508
 
 
4,800
 
Palomar Pomerado Health Care District, California, Certificates of Participation, Series 2010, 6.000%, 11/01/41
 
11/20 at 100.00
Baa3
   
4,580,400
 
 
5,785
 
Rancho Mirage Joint Powers Financing Authority, California, Revenue Bonds, Eisenhower Medical Center, Series 2007A, 5.000%, 7/01/38
 
7/17 at 100.00
Baa2
   
5,260,763
 
 
2,250
 
San Buenaventura, California, Revenue Bonds, Community Memorial Health System, Series 2011, 7.500%, 12/01/41
 
12/21 at 100.00
BB
   
2,428,875
 
 
56,768
 
Total Health Care
         
55,141,296
 
     
Housing/Multifamily – 1.4% (1.0% of Total Investments)
             
 
1,310
 
California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects Series 2010A, 6.400%, 8/15/45
 
8/20 at 100.00
BBB
   
1,346,746
 
 
410
 
California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects Series 2012A, 5.500%, 8/15/47
 
8/22 at 100.00
BBB
   
390,656
 
 
940
 
California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects Series 2012B, 7.250%, 8/15/47
 
8/22 at 100.00
A1
   
885,489
 
 
205
 
Independent Cities Lease Finance Authority, California, Mobile Home Park Revenue Bonds, San Juan Mobile Estates, Series 2006B, 5.850%, 5/15/41
 
5/16 at 100.00
N/R
   
191,944
 
 
2,865
 
Total Housing/Multifamily
         
2,814,835
 
     
Housing/Single Family – 3.3% (2.3% of Total Investments)
             
 
1,490
 
California Housing Finance Agency, California, Home Mortgage Revenue Bonds, Series 2007G, 5.050%, 2/01/29 (Alternative Minimum Tax)
 
2/17 at 100.00
BBB
   
1,416,245
 
 
135
 
California Housing Finance Agency, Home Mortgage Revenue Bonds, Series 2006H, 5.750%, 8/01/30 – FGIC Insured (Alternative Minimum Tax)
 
2/16 at 100.00
BBB
   
141,051
 
 
5,775
 
California Housing Finance Agency, Home Mortgage Revenue Bonds, Series 2006M, 4.650%, 8/01/31 (Alternative Minimum Tax)
 
2/16 at 100.00
BBB
   
5,126,872
 
 
7,400
 
Total Housing/Single Family
         
6,684,168
 
     
Industrials – 0.0% (0.0% of Total Investments)
             
 
3,175
 
California Statewide Communities Development Authority, Revenue Bonds, EnerTech Regional Biosolids Project, Series 2007A, 5.500%, 12/01/33 (Alternative Minimum Tax) (5)
 
No Opt. Call
D
   
35,655
 
     
Tax Obligation/General – 33.6% (23.0% of Total Investments)
             
 
1,300
 
Alhambra Unified School District, Los Angeles County, California, General Obligation Bonds, Refunding Series 2012A, 5.000%, 8/01/29 – AGM Insured
 
8/22 at 100.00
Aa3
   
1,340,521
 
 
10,000
 
California State, General Obligation Bonds, Series 2006CD, 4.600%, 12/01/32 (Alternative Minimum Tax)
 
12/15 at 100.00
AA
   
9,030,300
 
 
13,850
 
California State, General Obligation Bonds, Various Purpose Series 2009, 6.000%, 4/01/38
 
4/19 at 100.00
A1
   
15,340,674
 
     
California State, General Obligation Bonds, Various Purpose Series 2010:
             
 
2,000
 
6.000%, 3/01/33
 
3/20 at 100.00
A1
   
2,255,100
 
 
1,000
 
5.250%, 11/01/40
 
11/20 at 100.00
A1
   
1,015,440
 
     
California State, General Obligation Bonds, Various Purpose Series 2011:
             
 
4,850
 
5.250%, 10/01/28
 
No Opt. Call
A1
   
5,189,064
 
 
2,300
 
5.000%, 9/01/41
 
9/21 at 100.00
A1
   
2,293,123
 
 
2,190
 
5.000%, 10/01/41
 
10/21 at 100.00
A1
   
2,183,342
 

Nuveen Investments
 
33
 
 
 

 

NVX
Nuveen California Dividend Advantage Municipal Fund 2 (continued)
 
Portfolio of Investments August 31, 2013 (Unaudited)

 
Principal
     
Optional Call
         
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
   
Value
 
     
Tax Obligation/General (continued)
             
$
1,500
 
California State, General Obligation Bonds, Various Purpose Series 2013, 5.000%, 2/01/43
 
No Opt. Call
A1
 
$
1,493,070
 
 
32,730
 
Desert Community College District, Riverside County, California, General Obligation Bonds, Election 2004 Series 2007C, 0.000%, 8/01/46 – AGM Insured
 
No Opt. Call
Aa2
   
4,811,310
 
 
1,285
 
Los Angeles Unified School District, Los Angeles County, California, General Obligation Bonds, Series 2009D, 5.000%, 7/01/27
 
7/19 at 100.00
Aa2
   
1,378,741
 
 
13,530
 
New Haven Unified School District, Alameda County, California, General Obligation Bonds, Series 2004A, 0.000%, 8/01/24 – NPFG Insured
 
No Opt. Call
Aa3
   
7,637,550
 
 
1,265
 
Palomar Pomerado Health, California, General Obligation Bonds, Election of 2004, Series 2007A, 5.000%, 8/01/32 – NPFG Insured
 
8/17 at 100.00
A+
   
1,264,949
 
 
2,000
 
Puerto Rico, General Obligation and Public Improvement Bonds, Series 2002A, 5.500%, 7/01/20 – NPFG Insured
 
No Opt. Call
A
   
1,874,040
 
 
1,000
 
Southwestern Community College District, San Diego County, California, General Obligation Bonds, Election of 2008, Series 2011C, 5.250%, 8/01/36
 
8/21 at 100.00
Aa2
   
1,027,990
 
     
Yosemite Community College District, California, General Obligation Bonds, Capital Appreciation, Election 2004, Series 2010D:
             
 
6,480
 
0.000%, 8/01/31
 
No Opt. Call
Aa2
   
2,346,408
 
 
17,510
 
0.000%, 8/01/42
 
No Opt. Call
Aa2
   
5,464,171
 
 
1,600
 
Yuba Community College District, California, General Obligation Bonds, Election 2006 Series 2011C, 5.250%, 8/01/47
 
8/21 at 100.00
Aa2
   
1,616,032
 
 
116,390
 
Total Tax Obligation/General
         
67,561,825
 
     
Tax Obligation/Limited – 26.2% (17.9% of Total Investments)
             
     
Beaumont Financing Authority, California, Local Agency Revenue Bonds, Series 2004D:
             
 
650
 
5.500%, 9/01/24
 
9/14 at 102.00
N/R
   
659,048
 
 
385
 
5.800%, 9/01/35
 
9/14 at 102.00
N/R
   
381,693
 
 
1,190
 
Borrego Water District, California, Community Facilities District 2007-1 Montesoro, Special Tax Bonds, Series 2007, 5.750%, 8/01/25 (5)
 
8/17 at 102.00
N/R
   
314,469
 
 
1,245
 
California State, Economic Recovery Revenue Bonds, Series 2004A, 5.000%, 7/01/15
 
7/14 at 100.00
Aa2
   
1,293,991
 
 
435
 
Capistrano Unified School District, Orange County, California, Special Tax Bonds, Community Facilities District, Series 2005, 5.000%, 9/01/24 – FGIC Insured
 
9/15 at 100.00
A
   
436,931
 
 
700
 
Dinuba Redevelopment Agency, California, Tax Allocation Bonds, Merged City of Dinuba Redevelopment Project and Dinuba Redevelopment Project 2, As Amended, Series 2003, 5.000%, 9/01/33 – NPFG Insured
 
9/14 at 101.00
A
   
628,866
 
 
4,265
 
Escondido Joint Powers Financing Authority, California, Lease Revenue Bonds, Water System Financing, Series 2012, 5.000%, 9/01/41
 
3/22 at 100.00
AA–
   
4,091,372
 
 
960
 
Fontana Redevelopment Agency, California, Jurupa Hills Redevelopment Project, Tax Allocation Refunding Bonds, 1997 Series A, 5.500%, 10/01/27
 
10/13 at 100.00
A–
   
959,942
 
 
750
 
Fontana, California, Special Tax Bonds, Sierra Community Facilities District 22, Series 2004, 6.000%, 9/01/34
 
9/14 at 100.00
N/R
   
752,520
 
 
1,500
 
Gilroy School Facilities Financing Authority, Santa Clara County, California, Revenue Bonds, Series 2013A, 5.000%, 8/01/46
 
8/23 at 100.00
Aa3
   
1,411,800
 
 
2,995
 
Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A, 5.000%, 6/01/45 – AGM Insured
 
6/15 at 100.00
AA–
   
2,813,743
 
 
1,785
 
Hawthorne Community Redevelopment Agency, California, Project Area 2 Tax Allocation Bonds, Series 2006, 5.250%, 9/01/36 – SYNCORA GTY Insured
 
9/16 at 100.00
N/R
   
1,804,224
 
 
1,800
 
Hesperia Unified School District, San Bernardino County, California, Certificates of Participation, Capital Improvement, Series 2007, 5.000%, 2/01/41 – AMBAC Insured
 
2/17 at 100.00
A–
   
1,651,824
 
 
1,500
 
Hesperia Unified School District, San Bernardino County, California, Certificates of Participation, Series 2013A, 5.000%, 2/01/38 – BAM Insured
 
2/23 at 100.00
AA
   
1,424,910
 
 
870
 
Inglewood Redevelopment Agency, California, Tax Allocation Bonds, Merged Redevelopment Project, Subordinate Lien Series 2007A-1, 5.000%, 5/01/23 – AMBAC Insured
 
5/17 at 100.00
BB+
   
860,421
 
     
Irvine Unified School District, California, Special Tax Bonds, Community Facilities District Series 2006A:
             
 
205
 
5.000%, 9/01/26
 
9/16 at 100.00
N/R
   
201,921
 
 
470
 
5.125%, 9/01/36
 
9/16 at 100.00
N/R
   
441,903
 
 
415
 
Lammersville School District, San Joaquin County, California, Special Tax Bonds, Community Facilities District 2002 Mountain House, Series 2006, 5.125%, 9/01/35
 
9/16 at 100.00
N/R
   
367,723
 

34
 
Nuveen Investments
 
 
 

 

 
Principal
     
Optional Call
         
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
   
Value
 
     
Tax Obligation/Limited (continued)
             
$
800
 
Los Angeles Community Redevelopment Agency, California, Lease Revenue Bonds, Manchester Social Services Project, Series 2005, 5.000%, 9/01/37 – AMBAC Insured
 
9/15 at 100.00
A1
 
$
807,048
 
 
1,350
 
Los Angeles County Public Works Financing Authority, California, Lease Revenue Bonds, Multiple Capital Facilities Project II, Series 2012, 5.000%, 8/01/42
 
No Opt. Call
AA–
   
1,292,288
 
 
750
 
Lynwood Redevelopment Agency, California, Project A Revenue Bonds, Subordinate Lien Series 2011A, 7.000%, 9/01/31
 
9/21 at 100.00
A–
   
818,243
 
 
475
 
National City Community Development Commission, California, Tax Allocation Bonds, National City Redevelopment Project, Series 2011, 6.500%, 8/01/24
 
8/21 at 100.00
A–
   
550,653
 
 
475
 
North Natomas Community Facilities District 4, Sacramento, California, Special Tax Bonds, Series 2006D, 5.000%, 9/01/33
 
9/14 at 102.00
N/R
   
446,951
 
 
175
 
Novato Redevelopment Agency, California, Tax Allocation Bonds, Hamilton Field Redevelopment Project, Series 2011, 6.750%, 9/01/40
 
9/21 at 100.00
BBB+
   
186,043
 
 
2,000
 
Orange County, California, Special Tax Bonds, Community Facilities District 02-1 of Ladera Ranch, Series 2003A, 5.550%, 8/15/33
 
2/14 at 100.00
N/R
   
2,000,340
 
     
Patterson Public Finance Authority, California, Revenue Bonds, Community Facilities District 2001-1, Senior Series 2013A:
             
 
1,210
 
5.250%, 9/01/30
 
9/23 at 100.00
N/R
   
1,160,100
 
 
1,090
 
5.750%, 9/01/39
 
9/23 at 100.00
N/R
   
1,058,532
 
 
200
 
Patterson Public Finance Authority, California, Revenue Bonds, Community Facilities District 2001-1, Subordinate Lien Series 2013B , 5.875%, 9/01/39
 
9/23 at 100.00
N/R
   
192,406
 
     
Perris Union High School District Financing Authority, Riverside County, California, Revenue Bonds, Series 2011:
             
 
165
 
6.000%, 9/01/33
 
9/13 at 100.00
N/R
   
165,624
 
 
360
 
6.125%, 9/01/41
 
9/13 at 100.00
N/R
   
357,379
 
 
3,085
 
Pittsburg Redevelopment Agency, California, Tax Allocation Bonds, Los Medanos Community Development Project, Refunding Series 2008A, 6.500%, 9/01/28
 
9/18 at 100.00
BBB–
   
3,152,808
 
 
5,000
 
Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, First Subordinate Series 2009A, 0.000%, 8/01/32
 
8/26 at 100.00
A+
   
4,138,950
 
 
550
 
Rancho Santa Fe CSD Financing Authority, California, Revenue Bonds, Superior Lien Series 2011A, 5.750%, 9/01/30
 
9/21 at 100.00
BBB+
   
574,354
 
 
270
 
Rialto Redevelopment Agency, California, Tax Allocation Bonds, Merged Project Area, Series 2005A, 5.000%, 9/01/35 – SYNCORA GTY Insured
 
9/15 at 100.00
A–
   
251,265
 
 
100
 
Riverside County Redevelopment Agency, California, Tax Allocation Bonds, Jurupa Valley Project Area, Series 2011B, 6.500%, 10/01/25
 
10/21 at 100.00
A–
   
109,004
 
     
San Buenaventura Redevelopment Agency, California, Merged Project Areas Tax Allocation Bonds, Series 2008:
             
 
1,000
 
7.750%, 8/01/28
 
8/16 at 102.00
A
   
1,096,760
 
 
1,325
 
8.000%, 8/01/38
 
8/16 at 102.00
A
   
1,424,587
 
 
990
 
San Diego, California, Special Tax Community Facilities District 4 Black Mountain Ranch Villages Bonds, Series 2008A, 6.000%, 9/01/37
 
9/13 at 100.00
N/R
   
1,002,335
 
 
80
 
San Francisco Redevelopment Finance Authority, California, Tax Allocation Revenue Bonds, Mission Bay North Redevelopment Project, Series 2011C, 6.750%, 8/01/41
 
2/21 at 100.00
A–
   
87,703
 
     
San Francisco Redevelopment Financing Authority, California, Tax Allocation Revenue Bonds, Mission Bay South Redevelopment Project, Series 2011D:
             
 
85
 
7.000%, 8/01/33
 
2/21 at 100.00
BBB
   
91,229
 
 
105
 
7.000%, 8/01/41
 
2/21 at 100.00
BBB
   
111,046
 
     
San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment Project, Series 2006C:
             
 
1,100
 
5.000%, 8/01/24 – NPFG Insured
 
8/17 at 100.00
A
   
1,100,341
 
 
765
 
5.000%, 8/01/25 – NPFG Insured
 
8/17 at 100.00
A
   
758,199
 
 
995
 
San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment Project, Series 2006D, 5.000%, 8/01/23 – AMBAC Insured
 
8/17 at 100.00
BBB
   
1,002,701
 
 
1,530
 
San Marcos Public Facilities Authority, California, Tax Allocation Bonds, Project Areas 2 and 3, Series 2005C, 5.000%, 8/01/35 – AMBAC Insured
 
8/15 at 100.00
A–
   
1,423,971
 
 
140
 
Signal Hill Redevelopment Agency, California, Project 1 Tax Allocation Bonds, Series 2011, 7.000%, 10/01/26
 
4/21 at 100.00
N/R
   
143,877
 

Nuveen Investments
 
35
 
 
 

 

NVX
Nuveen California Dividend Advantage Municipal Fund 2 (continued)
 
Portfolio of Investments August 31, 2013 (Unaudited)

 
Principal
     
Optional Call
         
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
   
Value
 
     
Tax Obligation/Limited (continued)
             
$
6,500
 
Ventura County Public Financing Authority, California, Lease Revenue Bonds Series 2013A, 5.000%, 11/01/38
 
11/22 at 100.00
AA
 
$
6,336,005
 
 
240
 
Yorba Linda Redevelopment Agency, Orange County, California, Tax Allocation Revenue Bonds, Yorba Linda Redevelopment Project, Subordinate Lien Series 2011A, 6.500%, 9/01/32
 
9/21 at 100.00
A–
   
264,170
 
 
55,030
 
Total Tax Obligation/Limited
         
52,602,213
 
     
Transportation – 5.1% (3.5% of Total Investments)
             
 
1,430
 
Bay Area Toll Authority, California, Revenue Bonds, San Francisco Bay Area Toll Bridge, Series 2008, Trust 3211, 13.465%, 10/01/32 (IF)
 
4/18 at 100.00
AA
   
1,624,094
 
 
7,000
 
Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Refunding Bonds, Series 1999, 5.875%, 1/15/27
 
1/14 at 101.00
BBB–
   
7,055,650
 
 
1,545
 
Port of Oakland, California, Revenue Refunding Bonds, Series 2012P, 5.000%, 5/01/29 (Alternative Minimum Tax)
 
No Opt. Call
A+
   
1,523,447
 
 
9,975
 
Total Transportation
         
10,203,191
 
     
U.S. Guaranteed – 12.4% (8.5% of Total Investments) (6)
             
 
1,930
 
Bay Area Toll Authority, California, Revenue Bonds, San Francisco Bay Area Toll Bridge, Series 2006F, 5.000%, 4/01/31 (Pre-refunded 4/01/16) (UB)
 
4/16 at 100.00
AA (6)
   
2,144,153
 
 
4,900
 
California State Public Works Board, Lease Revenue Bonds, Department of Corrections, Series 2003C, 5.500%, 6/01/16 (Pre-refunded 12/01/13)
 
12/13 at 100.00
AAA
   
4,965,905
 
 
2,945
 
California State Public Works Board, Lease Revenue Bonds, University of California Regents, Tender Option Bond Trust 1065, 9.261%, 3/01/33 (Pre-refunded 3/01/18) (IF)
 
3/18 at 100.00
Aa2 (6)
   
3,025,516
 
 
860
 
California State, Economic Recovery Revenue Bonds, Series 2004A, 5.000%, 7/01/15 (Pre-refunded 7/01/14)
 
7/14 at 100.00
Aaa
   
894,581
 
 
415
 
California Statewide Community Development Authority, Revenue Bonds, Thomas Jefferson School of Law, Series 2005A, 4.875%, 10/01/31 (Pre-refunded 10/01/15)
 
10/15 at 100.00
N/R (6)
   
444,444
 
 
4,000
 
Daly City Housing Development Finance Agency, California, Mobile Home Park Revenue Bonds, Franciscan Mobile Home Park Project, Series 2002A, 5.850%, 12/15/32 (Pre-refunded 12/15/13)
 
12/13 at 102.00
A (6)
   
4,145,360
 
 
2,000
 
Lake Elsinore Public Finance Authority, California, Local Agency Revenue Refunding Bonds, Series 2003H, 6.000%, 10/01/20 (Pre-refunded 10/01/13)
 
10/13 at 102.00
N/R (6)
   
2,049,380
 
 
2,000
 
Puerto Rico Public Finance Corporation, Commonwealth Appropriation Bonds, Series 2002E, 6.000%, 8/01/26 (ETM)
 
No Opt. Call
BBB– (6)
   
2,423,780
 
 
355
 
Roseville Joint Union High School District, Placer County, California, General Obligation Bonds, Series 2006B, 5.000%, 8/01/27 (Pre-refunded 8/01/15) – FGIC Insured
 
8/15 at 100.00
AA (6)
   
386,357
 
 
1,700
 
San Buenaventura, California, Wastewater Revenue Certificates of Participation, Series 2004, 5.000%, 3/01/24 (Pre-refunded 3/01/14) – NPFG Insured
 
3/14 at 100.00
AA– (6)
   
1,740,851
 
 
825
 
San Mateo Union High School District, San Mateo County, California, Certificates of Participation, Phase 1, Series 2007A, 5.000%, 12/15/30 (Pre-refunded 12/15/17) – AMBAC Insured
 
12/17 at 100.00
AA– (6)
   
956,670
 
 
1,315
 
University of California, Limited Project Revenue Bonds, Series 2007D, 5.000%, 5/15/41 (Pre-refunded 5/15/16) – FGIC Insured
 
5/16 at 101.00
Aa2 (6)
   
1,305,151
 
 
415
 
West Patterson Financing Authority, California, Special Tax Bonds, Community Facilities District 01-1, Refunding Series 2009A, 8.625%, 9/01/39 (Pre-refunded 9/01/14)
 
9/14 at 105.00
N/R (6)
   
470,477
 
 
23,660
 
Total U.S. Guaranteed
         
24,952,625
 
     
Utilities – 15.0% (10.2% of Total Investments)
             
 
5,000
 
Anaheim Public Finance Authority, California, Second Lien Electric Distribution Revenue Bonds, Series 2004, 5.250%, 10/01/21 – NPFG Insured
 
10/14 at 100.00
AA–
   
5,237,600
 
 
2,355
 
Long Beach Bond Finance Authority, California, Natural Gas Purchase Revenue Bonds, Series 2007A, 5.000%, 11/15/35
 
No Opt. Call
A
   
2,224,509
 
 
500
 
Los Angeles Department of Water and Power, California, Power System Revenue Bonds, Series 2005A-1, 5.000%, 7/01/31 – AGM Insured (UB)
 
7/15 at 100.00
AA–
   
521,875
 
 
14,000
 
Los Angeles Department of Water and Power, California, Power System Revenue Bonds, Series 2012B, 5.000%, 7/01/43
 
7/22 at 100.00
AA–
   
14,148,540
 
 
250
 
Los Angeles Department of Water and Power, California, Power System Revenue Bonds, Tender Option Bond Trust 3345, 18.033%, 7/01/20 (IF) (4)
 
No Opt. Call
AA–
   
260,610
 
     
Merced Irrigation District, California, Electric System Revenue Bonds, Series 2005:
             
 
790
 
5.125%, 9/01/31 – SYNCORA GTY Insured
 
9/15 at 100.00
N/R
   
779,493
 
 
1,500
 
5.250%, 9/01/36 – SYNCORA GTY Insured
 
9/15 at 100.00
N/R
   
1,462,845
 

36
 
Nuveen Investments
 
 
 

 

 
Principal
     
Optional Call
         
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
   
Value
 
     
Utilities (continued)
             
$
1,500
 
Southern California Public Power Authority, California, Milford Wind Corridor Phase I Revenue Bonds, Series 2010-1, 5.000%, 7/01/28
 
1/20 at 100.00
AA–
 
$
1,581,345
 
 
4,000
 
Southern California Public Power Authority, Natural Gas Project 1 Revenue Bonds, Series 2007A, 5.000%, 11/01/33
 
No Opt. Call
A–
   
3,861,000
 
 
29,895
 
Total Utilities
         
30,077,817
 
     
Water and Sewer – 8.4% (5.7% of Total Investments)
             
 
2,500
 
Bay Area Water Supply and Conservation Agency, California, Revenue Bonds, Capital Cost Recovery Prepayment Program, Series 2013A, 5.000%, 10/01/28
 
4/23 at 100.00
AA–
   
2,658,425
 
 
5,240
 
California Pollution Control Financing Authority, Water Furnishing Revenue Bonds, Poseidon Resources Channelside Desalination Project, Series 2012, 5.000%, 11/21/45 (Alternative Minimum Tax)
 
No Opt. Call
Baa3
   
4,114,396
 
 
1,400
 
Castaic Lake Water Agency, California, Certificates of Participation, Series 2006C, 5.000%, 8/01/36 – NPFG Insured
 
8/16 at 100.00
AA–
   
1,401,820
 
 
545
 
Healdsburg Public Financing Authority, California, Wastewater Revenue Bonds, Series 2006, 5.000%, 4/01/36 – NPFG Insured
 
4/16 at 100.00
AA–
   
545,632
 
 
2,000
 
Metropolitan Water District of Southern California, Water Revenue Bonds, 2006 Authorization Series 2007A, 5.000%, 7/01/37
 
7/17 at 100.00
AAA
   
2,047,000
 
 
1,160
 
Metropolitan Water District of Southern California, Waterworks Revenue Bonds, Tender Option Bond Trust 09-8B, 17.523%, 7/01/35 (IF) (4)
 
7/19 at 100.00
AAA
   
1,278,830
 
 
1,500
 
Orange County Water District, California, Revenue Certificates of Participation, Tender Option Bond Trust 11782-1, 17.816%, 2/15/35 (IF)
 
8/19 at 100.00
AAA
   
1,581,600
 
 
750
 
Sacramento County Sanitation District Financing Authority, California, Revenue Bonds, Series 2006, 5.000%, 12/01/31 – FGIC Insured
 
6/16 at 100.00
AA
   
768,630
 
 
2,400
 
San Francisco City and County Public Utilities Commission, California, Water Revenue Bonds, Series 2009B, 5.000%, 11/01/39
 
No Opt. Call
AA–
   
2,412,480
 
 
17,495
 
Total Water and Sewer
         
16,808,813
 
$
353,868
 
Total Investments (cost $299,183,367) – 146.2%
         
293,552,149
 
     
Floating Rate Obligations – (4.7)%
         
(9,380,000
)
     
Variable Rate Demand Preferred Shares, at Liquidation Value – (48.8)% (7)
         
(98,000,000
)
     
Other Assets Less Liabilities – 7.3%
         
14,665,906
 
     
Net Assets Applicable to Common Shares – 100%
       
$
200,838,055
 
 
(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: 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: Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies.
(4)
Investment, or portion of investment, has been pledged to collateralize the net payment obligations for investments in inverse floating rate transactions.
(5)
At or subsequent to the end of the reporting period, this security is non-income producing. Non-income producing, in the case of a fixed-income security, generally denotes that the issuer has (1) defaulted on the payment of principal or interest, (2) is under the protection of the Federal Bankruptcy Court or (3) the Fund’s Adviser has concluded that the issue is not likely to meet its future interest payment obligations and has directed the Fund’s custodian to cease accruing additional income on the Fund’s records.
(6)
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. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities.
(7)
Variable Rate Demand Preferred Shares, at Liquidation Value as a percentage of Total Investments is 33.4%.
(ETM)
Escrowed to maturity.
(IF)
Inverse floating rate investment.
(UB)
Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Note 3 – Portfolio Securities and Investments in Derivatives, Inverse Floating Rate Securities for more information.
 
See accompanying notes to financial statements.

Nuveen Investments
 
37
 
 
 

 

NZH
 
 
Nuveen California Dividend Advantage Municipal Fund 3
 
Portfolio of Investments
 
August 31, 2013 (Unaudited)

 
Principal
     
Optional Call
         
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
   
Value
 
     
Consumer Staples – 7.9% (5.5% of Total Investments)
             
$
540
 
California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Sonoma County Tobacco Securitization Corporation, Series 2005, 4.250%, 6/01/21
 
6/15 at 100.00
BB+
 
$
501,206
 
     
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-1:
             
 
19,485
 
5.750%, 6/01/47
 
6/17 at 100.00
B
   
14,390,257
 
 
6,325
 
5.125%, 6/01/47
 
6/17 at 100.00
B
   
4,238,446
 
 
6,265
 
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-2, 5.300%, 6/01/37
 
6/22 at 100.00
B
   
4,426,974
 
 
32,615
 
Total Consumer Staples
         
23,556,883
 
     
Education and Civic Organizations – 5.7% (4.0% of Total Investments)
             
 
290
 
California Educational Facilities Authority, Revenue Bonds, University of Redlands, Series 2005A, 5.000%, 10/01/35
 
10/15 at 100.00
A3
   
290,044
 
 
2,160
 
California Educational Facilities Authority, Revenue Bonds, University of San Francisco, Series 2011, 6.125%, 10/01/36
 
10/21 at 100.00
A2
   
2,369,930
 
     
California Educational Facilities Authority, Revenue Bonds, University of the Pacific, Series 2006:
             
 
200
 
5.000%, 11/01/21
 
11/15 at 100.00
A2
   
207,428
 
 
270
 
5.000%, 11/01/25
 
11/15 at 100.00
A2
   
275,495
 
 
1,000
 
5.000%, 11/01/30
 
11/15 at 100.00
A2
   
1,002,070
 
 
1,275
 
California Educational Facilities Authority, Student Loan Revenue Bonds, Cal Loan Program, Series 2001A, 5.400%, 3/01/21 – NPFG Insured (Alternative Minimum Tax)
 
3/14 at 100.00
Baa1
   
1,275,893
 
 
6,000
 
California State University, Systemwide Revenue Bonds, Series 2005C, 5.000%, 11/01/27 – NPFG Insured
 
11/15 at 100.00
Aa2
   
6,382,500
 
 
1,300
 
California Statewide Communities Development Authority, School Facility Revenue Bonds, Alliance College-Ready Public Schools, Series 2011A, 7.000%, 7/01/46
 
7/21 at 100.00
BBB–
   
1,346,514
 
 
560
 
California Statewide Community Development Authority, Revenue Bonds, Notre Dame de Namur University, Series 2003, 6.500%, 10/01/23
 
10/13 at 100.00
N/R
   
560,140
 
 
3,000
 
University of California, General Revenue Bonds, Series 2013AF, 5.000%, 5/15/29
 
5/23 at 100.00
Aa1
   
3,177,270
 
 
16,055
 
Total Education and Civic Organizations
         
16,887,284
 
     
Health Care – 25.9% (18.1% of Total Investments)
             
 
2,500
 
California Health Facilities Financing Authority, Revenue Bonds, Catholic Healthcare West, Series 2008J, 5.625%, 7/01/32
 
7/15 at 100.00
A
   
2,525,800
 
 
1,445
 
California Health Facilities Financing Authority, Revenue Bonds, Rady Children’s Hospital – San Diego, Series 2011, 5.250%, 8/15/41
 
8/21 at 100.00
A+
   
1,451,965
 
 
1,765
 
California Health Facilities Financing Authority, Revenue Bonds, Saint Joseph Health System, Series 2009A, 5.750%, 7/01/39
 
7/19 at 100.00
AA–
   
1,902,158
 
 
3,530
 
California Health Facilities Financing Authority, Revenue Bonds, Sutter Health, Series 2011B, 6.000%, 8/15/42
 
8/20 at 100.00
AA–
   
3,889,072
 
 
3,735
 
California Health Facilities Financing Authority, Revenue Bonds, Sutter Health, Tender Option Bonds Trust 3765, 19.037%, 5/15/39 (IF) (4)
 
11/16 at 100.00
AA–
   
3,179,419
 
 
3,850
 
California Statewide Communities Development Authority, Revenue Bonds, Adventist Health System West, Series 2005A, 5.000%, 3/01/35
 
3/15 at 100.00
A
   
3,639,136
 
 
1,650
 
California Statewide Communities Development Authority, Revenue Bonds, Adventist Health System West, Series 2007B, 5.000%, 3/01/37 – AGC Insured
 
3/18 at 100.00
AA–
   
1,626,438
 
 
1,000
 
California Statewide Communities Development Authority, Revenue Bonds, Kaiser Permanente, Series 2012A, 5.000%, 4/01/42
 
4/22 at 100.00
A+
   
962,440
 
 
1,594
 
California Statewide Communities Development Authority, Revenue Bonds, Saint Joseph Health System, Trust 2554, 18.234%, 7/01/47 – AGM Insured (IF)
 
7/18 at 100.00
AA–
   
1,613,961
 

38
 
Nuveen Investments
 
 
 

 

 
Principal
     
Optional Call
         
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
   
Value
 
     
Health Care (continued)
             
$
8,875
 
California Statewide Communities Development Authority, Revenue Bonds, Sutter Health, Series 2011A, 6.000%, 8/15/42
 
8/20 at 100.00
AA–
 
$
9,777,765
 
 
3,435
 
California Statewide Communities Development Authority, Revenue Bonds, ValleyCare Health System, Series 2007A, 5.125%, 7/15/31
 
7/17 at 100.00
N/R
   
2,913,155
 
 
4,500
 
California Statewide Community Development Authority, Insured Health Facility Revenue Bonds, Catholic Healthcare West, Series 2008K, 5.500%, 7/01/41 – AGC Insured
 
7/17 at 100.00
AA–
   
4,594,950
 
 
2,330
 
California Statewide Community Development Authority, Revenue Bonds, Daughters of Charity Health System, Series 2005A, 5.250%, 7/01/35
 
7/15 at 100.00
BBB–
   
2,322,334
 
 
645
 
California Statewide Community Development Authority, Revenue Bonds, Kaiser Permanente System, Series 2001C, 5.250%, 8/01/31
 
8/16 at 100.00
A+
   
650,083
 
 
3,860
 
California Statewide Community Development Authority, Revenue Bonds, St. Joseph Health System, Series 2007A, 5.750%, 7/01/47 – FGIC Insured
 
7/18 at 100.00
AA–
   
4,085,578
 
 
5,600
 
California Statewide Community Development Authority, Revenue Bonds, Sutter Health, Tender Option Bond Trust 3102, 18.765%, 11/15/46 (IF) (4)
 
11/16 at 100.00
AA–
   
4,766,776
 
 
2,950
 
Loma Linda, California, Hospital Revenue Bonds, Loma Linda University Medical Center, Series 2008A, 8.250%, 12/01/38
 
12/17 at 100.00
BBB
   
3,198,331
 
 
4,000
 
Marysville, California, Revenue Bonds, The Fremont-Rideout Health Group, Series 2011, 5.250%, 1/01/42
 
1/21 at 100.00
A
   
3,893,320
 
 
695
 
Oak Valley Hospital District, Stanislaus County, California, Revenue Bonds, Series 2010A, 6.500%, 11/01/29
 
11/20 at 100.00
BB+
   
678,973
 
 
1,000
 
Palomar Pomerado Health Care District, California, Certificates of Participation, Series 2009, 6.750%, 11/01/39
 
11/19 at 100.00
Baa3
   
1,023,110
 
 
7,650
 
Palomar Pomerado Health Care District, California, Certificates of Participation, Series 2010, 6.000%, 11/01/41
 
11/20 at 100.00
Baa3
   
7,300,013
 
     
Rancho Mirage Joint Powers Financing Authority, California, Revenue Bonds, Eisenhower Medical Center, Series 2007A:
             
 
5,790
 
5.000%, 7/01/38
 
7/17 at 100.00
Baa2
   
5,265,310
 
 
2,500
 
5.000%, 7/01/47
 
7/17 at 100.00
Baa2
   
2,191,900
 
 
3,400
 
San Buenaventura, California, Revenue Bonds, Community Memorial Health System, Series 2011, 7.500%, 12/01/41
 
12/21 at 100.00
BB
   
3,670,300
 
 
78,299
 
Total Health Care
         
77,122,287
 
     
Housing/Multifamily – 1.4% (1.0% of Total Investments)
             
 
2,010
 
California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects Series 2010A, 6.400%, 8/15/45
 
8/20 at 100.00
BBB
   
2,066,381
 
 
2,020
 
California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects Series 2012A, 5.500%, 8/15/47
 
8/22 at 100.00
BBB
   
1,924,696
 
 
325
 
Independent Cities Lease Finance Authority, California, Mobile Home Park Revenue Bonds, San Juan Mobile Estates, Series 2006B, 5.850%, 5/15/41
 
5/16 at 100.00
N/R
   
304,301
 
 
4,355
 
Total Housing/Multifamily
         
4,295,378
 
     
Housing/Single Family – 3.4% (2.3% of Total Investments)
             
 
230
 
California Housing Finance Agency, Home Mortgage Revenue Bonds, Series 2006H, 5.750%, 8/01/30 – FGIC Insured (Alternative Minimum Tax)
 
2/16 at 100.00
BBB
   
240,309
 
     
California Housing Finance Agency, Home Mortgage Revenue Bonds, Tender Option Bond Trust 3206:
             
 
10,180
 
8.040%, 8/01/25 (Alternative Minimum Tax) (IF)
 
2/16 at 100.00
BBB
   
7,324,205
 
 
3,805
 
8.413%, 2/01/29 (Alternative Minimum Tax) (IF)
 
2/17 at 100.00
BBB
   
2,428,998
 
 
14,215
 
Total Housing/Single Family
         
9,993,512
 
     
Industrials – 1.7% (1.2% of Total Investments)
             
 
5,000
 
California Pollution Control Financing Authority, Solid Waste Disposal Revenue Bonds, Waste Management Inc., Series 2005C, 5.125%, 11/01/23 (Alternative Minimum Tax)
 
11/15 at 101.00
BBB
   
5,053,800
 
 
5,205
 
California Statewide Communities Development Authority, Revenue Bonds, EnerTech Regional Biosolids Project, Series 2007A, 5.500%, 12/01/33 (Alternative Minimum Tax) (5)
 
No Opt. Call
D
   
58,452
 
 
10,205
 
Total Industrials
         
5,112,252
 

Nuveen Investments
 
39
 
 
 

 

NZH
Nuveen California Dividend Advantage Municipal Fund 3 (continued)
 
Portfolio of Investments August 31, 2013 (Unaudited)

 
Principal
     
Optional Call
         
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
   
Value
 
     
Long-Term Care – 1.3% (0.9% of Total Investments)
             
     
California Health Facilities Financing Authority, Insured Senior Living Revenue Bonds, Aldersly Project, Series 2002A:
             
$
1,500
 
5.125%, 3/01/22
 
9/13 at 100.00
A
 
$
1,504,800
 
 
1,315
 
5.250%, 3/01/32
 
9/13 at 100.00
A
   
1,314,908
 
 
1,000
 
California Municipal Finance Authority, Revenue Bonds, Harbor Regional Center Project, Series 2009, 8.000%, 11/01/29
 
11/19 at 100.00
Baa1
   
1,146,910
 
 
3,815
 
Total Long-Term Care
         
3,966,618
 
     
Tax Obligation/General – 16.5% (11.6% of Total Investments)
             
     
California State, General Obligation Bonds, Various Purpose Refunding Series 2013:
             
 
1,260
 
5.000%, 2/01/29
 
No Opt. Call
A1
   
1,312,807
 
 
1,710
 
5.000%, 2/01/31
 
No Opt. Call
A1
   
1,755,161
 
     
California State, General Obligation Bonds, Various Purpose Series 2009:
             
 
3,040
 
6.000%, 11/01/39
 
11/19 at 100.00
A1
   
3,393,947
 
 
3,500
 
5.500%, 11/01/39
 
11/19 at 100.00
A1
   
3,659,635
 
     
California State, General Obligation Bonds, Various Purpose Series 2010:
             
 
1,960
 
5.500%, 3/01/40
 
3/20 at 100.00
A1
   
2,028,110
 
 
1,000
 
5.250%, 11/01/40
 
11/20 at 100.00
A1
   
1,015,440
 
     
California State, General Obligation Bonds, Various Purpose Series 2011:
             
 
1,770
 
5.250%, 10/01/28
 
No Opt. Call
A1
   
1,893,741
 
 
4,000
 
5.000%, 9/01/31
 
No Opt. Call
A1
   
4,130,440
 
 
4,315
 
5.000%, 10/01/41
 
10/21 at 100.00
A1
   
4,301,882
 
 
3,230
 
California State, General Obligation Bonds, Various Purpose Series 2012, 5.250%, 2/01/29
 
2/22 at 100.00
A1
   
3,418,987
 
 
2,465
 
California State, General Obligation Bonds, Various Purpose Series 2013, 5.000%, 4/01/37
 
4/23 at 100.00
A1
   
2,464,901
 
 
15
 
California, General Obligation Veterans Welfare Bonds, Series 2001BZ, 5.350%, 12/01/21 – NPFG Insured (Alternative Minimum Tax)
 
12/13 at 100.00
AA
   
15,015
 
 
1,120
 
Oxnard School District, Ventura County, California, General Obligation Bonds, Election 2012 Series 2013B, 5.000%, 8/01/43 – AGM Insured
 
8/23 at 100.00
AA–
   
1,069,813
 
 
18,500
 
Poway Unified School District, San Diego County, California, School Facilities Improvement District 2007-1 General Obligation Bonds, Series 2011A, 0.000%, 8/01/46
 
No Opt. Call
Aa2
   
2,332,850
 
 
2,715
 
San Jose-Evergreen Community College District, Santa Clara County, California, General Obligation Bonds, Series 2005A, 5.000%, 9/01/25 – NPFG Insured
 
9/15 at 100.00
Aa1
   
2,923,946
 
 
2,115
 
San Mateo Union High School District, San Mateo County, California, General Obligation Bonds, Election 2010 Series 2011A, 5.000%, 9/01/42
 
9/21 at 100.00
Aa1
   
2,131,645
 
 
5,530
 
Stockton Unified School District, San Joaquin County, California, General Obligation Bonds, Election 2008 Series 2011D, 0.000%, 8/01/50 – AGM Insured
 
8/37 at 100.00
AA–
   
2,139,612
 
     
Yosemite Community College District, California, General Obligation Bonds, Capital Appreciation, Election 2004, Series 2010D:
             
 
15,000
 
0.000%, 8/01/31
 
No Opt. Call
Aa2
   
5,431,500
 
 
12,520
 
0.000%, 8/01/42
 
No Opt. Call
Aa2
   
3,906,991
 
 
85,765
 
Total Tax Obligation/General
         
49,326,423
 
     
Tax Obligation/Limited – 48.8% (34.2% of Total Investments)
             
 
1,960
 
Borrego Water District, California, Community Facilities District 2007-1 Montesoro, Special Tax Bonds, Series 2007, 5.750%, 8/01/25 (5)
 
8/17 at 102.00
N/R
   
517,950
 
 
4,000
 
California State Public Works Board, Lease Revenue Bonds, Department of General Services, Series 2002B, 5.000%, 3/01/27 – AMBAC Insured
 
9/13 at 100.00
A2
   
3,999,960
 
 
4,510
 
California State Public Works Board, Lease Revenue Bonds, Department of Mental Health, Hospital Addition, Series 2001A, 5.000%, 12/01/26 – AMBAC Insured
 
12/13 at 100.00
A2
   
4,509,820
 
 
1,000
 
California State Public Works Board, Lease Revenue Bonds, Various Capital Projects, Series 2009G-1, 5.750%, 10/01/30
 
10/19 at 100.00
A2
   
1,074,670
 
 
2,260
 
California State Public Works Board, Lease Revenue Bonds, Various Capital Projects, Series 2010A-1, 5.750%, 3/01/30
 
3/20 at 100.00
A2
   
2,438,856
 
 
715
 
Capistrano Unified School District, Orange County, California, Special Tax Bonds, Community Facilities District, Series 2005, 5.000%, 9/01/24 – FGIC Insured
 
9/15 at 100.00
A
   
718,175
 
 
2,160
 
Chino Redevelopment Agency, California, Merged Chino Redevelopment Project Area Tax Allocation Bonds, Series 2006, 5.000%, 9/01/38 – AMBAC Insured
 
9/16 at 101.00
A–
   
1,994,911
 

40
 
Nuveen Investments
 
 
 

 

 
Principal
     
Optional Call
         
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
   
Value
 
     
Tax Obligation/Limited (continued)
             
$
1,050
 
Dinuba Redevelopment Agency, California, Tax Allocation Bonds, Merged City of Dinuba Redevelopment Project and Dinuba Redevelopment Project 2, As Amended, Series 2003, 5.000%, 9/01/33 – NPFG Insured
 
9/14 at 101.00
A
 
$
943,299
 
 
1,445
 
Fontana Redevelopment Agency, California, Jurupa Hills Redevelopment Project, Tax Allocation Refunding Bonds, 1997 Series A, 5.500%, 10/01/27
 
10/13 at 100.00
A–
   
1,444,913
 
 
1,125
 
Fontana, California, Special Tax Bonds, Sierra Community Facilities District 22, Series 2004, 6.000%, 9/01/34
 
9/14 at 100.00
N/R
   
1,128,780
 
 
3,500
 
Fremont, California, Special Tax Bonds, Community Facilities District 1, Pacific Commons, Series 2005, 6.300%, 9/01/31
 
9/13 at 100.00
N/R
   
3,504,935
 
 
1,000
 
Gilroy School Facilities Financing Authority, Santa Clara County, California, Revenue Bonds, Series 2013A, 5.000%, 8/01/46
 
8/23 at 100.00
Aa3
   
941,200
 
 
5,910
 
Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A, 5.000%, 6/01/45 – AGC Insured
 
6/15 at 100.00
AA–
   
5,552,327
 
 
1,310
 
Inglewood Redevelopment Agency, California, Tax Allocation Bonds, Merged Redevelopment Project, Subordinate Lien Series 2007A-1, 5.000%, 5/01/23 – AMBAC Insured
 
5/17 at 100.00
BB+
   
1,295,577
 
     
Irvine Unified School District, California, Special Tax Bonds, Community Facilities District Series 2006A:
             
 
330
 
5.000%, 9/01/26
 
9/16 at 100.00
N/R
   
325,043
 
 
760
 
5.125%, 9/01/36
 
9/16 at 100.00
N/R
   
714,567
 
 
685
 
Lammersville School District, San Joaquin County, California, Special Tax Bonds, Community Facilities District 2002 Mountain House, Series 2006, 5.125%, 9/01/35
 
9/16 at 100.00
N/R
   
606,965
 
 
1,000
 
Lindsay Redevelopment Agency, California, Project 1 Tax Allocation Bonds, Series 2007, 5.000%, 8/01/37 – RAAI Insured
 
8/17 at 100.00
BBB+
   
884,210
 
 
1,310
 
Los Angeles Community Redevelopment Agency, California, Lease Revenue Bonds, Manchester Social Services Project, Series 2005, 5.000%, 9/01/37 – AMBAC Insured
 
9/15 at 100.00
A1
   
1,321,541
 
     
Los Angeles Community Redevelopment Agency, California, Subordinate Lien Tax Allocation Bonds, Bunker Hill Redevelopment Project, Series 2004L:
             
 
1,715
 
5.000%, 3/01/18
 
9/13 at 100.00
BBB–
   
1,725,702
 
 
1,350
 
5.100%, 3/01/19
 
9/13 at 100.00
BBB–
   
1,357,547
 
 
7,000
 
Los Angeles County Public Works Financing Authority, California, Lease Revenue Bonds, Multiple Capital Facilities Project II, Series 2012, 5.000%, 8/01/42
 
No Opt. Call
AA–
   
6,700,750
 
 
1,675
 
Moreno Valley Unified School District, Riverside County, California, Certificates of Participation, Series 2005, 5.000%, 3/01/26 – AGM Insured
 
3/14 at 100.00
AA–
   
1,706,976
 
 
725
 
National City Community Development Commission, California, Tax Allocation Bonds, National City Redevelopment Project, Series 2011, 6.500%, 8/01/24
 
8/21 at 100.00
A–
   
840,471
 
 
240
 
North Natomas Community Facilities District 4, Sacramento, California, Special Tax Bonds, Series 2006D, 5.000%, 9/01/33
 
9/14 at 102.00
N/R
   
225,828
 
 
270
 
Novato Redevelopment Agency, California, Tax Allocation Bonds, Hamilton Field Redevelopment Project, Series 2011, 6.750%, 9/01/40
 
9/21 at 100.00
BBB+
   
287,037
 
 
3,000
 
Oakland Redevelopment Agency, California, Subordinate Lien Tax Allocation Bonds, Central District Redevelopment Project, Series 2003, 5.500%, 9/01/19 – FGIC Insured
 
9/13 at 100.00
A
   
3,005,760
 
 
2,000
 
Orange County, California, Special Tax Bonds, Community Facilities District 02-1 of Ladera Ranch, Series 2003A, 5.550%, 8/15/33
 
2/14 at 100.00
N/R
   
2,000,340
 
 
11,165
 
Palm Desert Financing Authority, California, Tax Allocation Revenue Refunding Bonds, Project Area 1, Series 2002, 5.100%, 4/01/30 – NPFG Insured
 
4/14 at 100.00
A
   
10,854,055
 
     
Patterson Public Finance Authority, California, Revenue Bonds, Community Facilities District 2001-1, Senior Series 2013A:
             
 
1,820
 
5.250%, 9/01/30
 
9/23 at 100.00
N/R
   
1,744,943
 
 
1,635
 
5.750%, 9/01/39
 
9/23 at 100.00
N/R
   
1,587,798
 
 
300
 
Patterson Public Finance Authority, California, Revenue Bonds, Community Facilities District 2001-1, Subordinate Lien Series 2013B , 5.875%, 9/01/39
 
9/23 at 100.00
N/R
   
288,609
 
     
Perris Union High School District Financing Authority, Riverside County, California, Revenue Bonds, Series 2011:
             
 
245
 
6.000%, 9/01/33
 
9/13 at 100.00
N/R
   
245,926
 
 
540
 
6.125%, 9/01/41
 
9/13 at 100.00
N/R
   
536,069
 
 
3,000
 
Pico Rivera Water Authority, California, Revenue Bonds, Series 2001A, 6.250%, 12/01/32
 
12/13 at 100.00
N/R
   
3,000,270
 

Nuveen Investments
 
41
 
 
 

 

NZH
Nuveen California Dividend Advantage Municipal Fund 3 (continued)
 
Portfolio of Investments August 31, 2013 (Unaudited)

 
Principal
     
Optional Call
         
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
   
Value
 
     
Tax Obligation/Limited (continued)
             
$
2,185
 
Pittsburg Redevelopment Agency, California, Tax Allocation Bonds, Los Medanos Community Development Project, Refunding Series 2008A, 6.500%, 9/01/28
 
9/18 at 100.00
BBB–
 
$
2,233,026
 
 
3,250
 
Pomona Public Financing Authority, California, Revenue Refunding Bonds, Merged Redevelopment Projects, Series 2001AD, 5.000%, 2/01/27 – NPFG Insured
 
2/14 at 100.00
A
   
2,977,033
 
 
995
 
Poway Unified School District, San Diego County, California, Special Tax Bonds, Community Facilities District 14 Del Sur, Series 2006, 5.125%, 9/01/26
 
9/16 at 100.00
N/R
   
935,987
 
 
6,000
 
Puerto Rico Highway and Transportation Authority, Highway Revenue Bonds, Series 2007N, 5.250%, 7/01/39 – FGIC Insured
 
No Opt. Call
BBB
   
4,164,420
 
 
8,000
 
Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, First Subordinate Series 2009A, 0.000%, 8/01/32
 
8/26 at 100.00
A+
   
6,622,320
 
 
865
 
Rancho Santa Fe CSD Financing Authority, California, Revenue Bonds, Superior Lien Series 2011A, 5.750%, 9/01/30
 
9/21 at 100.00
BBB+
   
903,302
 
 
625
 
Rialto Redevelopment Agency, California, Tax Allocation Bonds, Merged Project Area, Series 2005A, 5.000%, 9/01/35 – SYNCORA GTY Insured
 
9/15 at 100.00
A–
   
581,631
 
 
3,375
 
Riverside County Redevelopment Agency, California, Interstate 215 Corridor Redevelopment Project Area Tax Allocation Bonds, Series 2010E, 6.500%, 10/01/40
 
10/20 at 100.00
A–
   
3,548,441
 
 
155
 
Riverside County Redevelopment Agency, California, Tax Allocation Bonds, Jurupa Valley Project Area, Series 2011B, 6.500%, 10/01/25
 
10/21 at 100.00
A–
   
168,956
 
     
Riverside County, California, Special Tax Bonds, Community Facilities District 04-2 Lake Hill Crest, Series 2012:
             
 
995
 
5.000%, 9/01/29
 
9/22 at 100.00
N/R
   
945,549
 
 
2,625
 
5.000%, 9/01/35
 
9/22 at 100.00
N/R
   
2,374,890
 
 
3,100
 
San Diego County, California, Certificates of Participation, Burnham Institute, Series 2006, 5.000%, 9/01/34
 
9/15 at 102.00
Baa2
   
2,941,621
 
 
14,505
 
San Diego Redevelopment Agency, California, Subordinate Lien Tax Allocation Bonds, Centre City Project, Series 2001A, 5.000%, 9/01/26 – AGM Insured
 
9/13 at 100.00
AA–
   
14,548,515
 
 
125
 
San Francisco Redevelopment Finance Authority, California, Tax Allocation Revenue Bonds, Mission Bay North Redevelopment Project, Series 2011C, 6.750%, 8/01/41
 
2/21 at 100.00
A–
   
137,036
 
     
San Francisco Redevelopment Financing Authority, California, Tax Allocation Revenue Bonds, Mission Bay South Redevelopment Project, Series 2011D:
             
 
125
 
7.000%, 8/01/33
 
2/21 at 100.00
BBB
   
134,160
 
 
160
 
7.000%, 8/01/41
 
2/21 at 100.00
BBB
   
169,213
 
 
1,160
 
San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment Project, Series 2006C, 5.000%, 8/01/25 – NPFG Insured
 
8/17 at 100.00
A
   
1,149,688
 
 
1,500
 
San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment Project, Series 2006D, 5.000%, 8/01/23 – AMBAC Insured
 
8/17 at 100.00
BBB
   
1,511,610
 
 
6,000
 
San Marcos Public Facilities Authority, California, Tax Allocation Bonds, Project Areas 1 and 3, Series 2005A, 5.000%, 8/01/34 – AMBAC Insured
 
8/15 at 102.00
A
   
5,552,340
 
 
215
 
Signal Hill Redevelopment Agency, California, Project 1 Tax Allocation Bonds, Series 2011, 7.000%, 10/01/26
 
4/21 at 100.00
N/R
   
220,953
 
 
8,710
 
South Orange County Public Financing Authority, California, Special Tax Revenue Bonds, Ladera Ranch, Series 2005A, 5.000%, 8/15/32 – AMBAC Insured
 
8/15 at 100.00
BBB+
   
8,254,990
 
 
1,500
 
Stockton Public Financing Authority, California, Lease Revenue Bonds, Series 2004, 5.250%, 9/01/34 – FGIC Insured
 
9/14 at 100.00
A
   
1,262,640
 
 
1,165
 
Temecula Redevelopment Agency, California, Redevelopment Project 1 Tax Allocation Housing Bonds Series 2011A, 7.000%, 8/01/39
 
8/21 at 100.00
A
   
1,316,590
 
 
1,950
 
Ventura County Public Financing Authority, California, Lease Revenue Bonds Series 2013A, 5.000%, 11/01/38
 
11/22 at 100.00
AA
   
1,900,802
 
 
7,500
 
Westminster Redevelopment Agency, California, Tax Allocation Bonds, Commercial Redevelopment Project 1, Police Facility Subordinate Series 2009, 6.250%, 11/01/39
 
11/19 at 100.00
AA–
   
8,193,300
 
 
370
 
Yorba Linda Redevelopment Agency, Orange County, California, Tax Allocation Revenue Bonds, Yorba Linda Redevelopment Project, Subordinate Lien Series 2011A, 6.500%, 9/01/32
 
9/21 at 100.00
A–
   
407,263
 
 
2,500
 
Yucaipa-Calimesa Joint Unified School District, San Bernardino County, California, Certificates of Participation, Refunding Series 2001A, 5.000%, 10/01/26 – NPFG Insured
 
10/13 at 100.00
A
   
2,486,850
 
 
152,365
 
Total Tax Obligation/Limited
         
145,668,906
 

42
 
Nuveen Investments
 
 
 

 

 
Principal
     
Optional Call
         
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
   
Value
 
     
Transportation – 4.7% (3.3% of Total Investments)
             
$
11,750
 
Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Refunding Bonds, Series 1999, 5.875%, 1/15/28
 
1/14 at 101.00
BBB–
 
$
11,817,445
 
 
2,350
 
Port of Oakland, California, Revenue Refunding Bonds, Series 2012P, 5.000%, 5/01/29 (Alternative Minimum Tax)
 
No Opt. Call
A+
   
2,317,218
 
 
14,100
 
Total Transportation
         
14,134,663
 
     
U.S. Guaranteed – 7.7% (5.4% of Total Investments) (6)
             
 
1,690
 
Bay Area Toll Authority, California, Revenue Bonds, San Francisco Bay Area Toll Bridge, Series 2006F, 5.000%, 4/01/31 (Pre-refunded 4/01/16) (UB)
 
4/16 at 100.00
AA (6)
   
1,877,522
 
 
8,210
 
California State Public Works Board, Lease Revenue Bonds, Department of Corrections, Series 2003C, 5.500%, 6/01/16 (Pre-refunded 12/01/13)
 
12/13 at 100.00
AAA
   
8,320,425
 
 
660
 
California Statewide Community Development Authority, Revenue Bonds, Thomas Jefferson School of Law, Series 2005A, 4.875%, 10/01/31 (Pre-refunded 10/01/15)
 
10/15 at 100.00
N/R (6)
   
706,827
 
 
2,000
 
Daly City Housing Development Finance Agency, California, Mobile Home Park Revenue Bonds, Franciscan Mobile Home Park Project, Series 2002A, 5.800%, 12/15/25 (Pre-refunded 12/15/13)
 
12/13 at 102.00
A (6)
   
2,072,400
 
 
3,000
 
Lake Elsinore Public Finance Authority, California, Local Agency Revenue Refunding Bonds, Series 2003H, 6.000%, 10/01/20 (Pre-refunded 10/01/13)
 
10/13 at 102.00
N/R (6)
   
3,074,070
 
 
2,330
 
Newport Beach, California, Revenue Bonds, Hoag Memorial Hospital Presbyterian, Series 2011A, 6.000%, 12/01/40 (Pre-refunded 12/01/21)
 
12/21 at 100.00
AA (6)
   
2,930,138
 
 
575
 
Roseville Joint Union High School District, Placer County, California, General Obligation Bonds, Series 2006B, 5.000%, 8/01/27 (Pre-refunded 8/01/15) – FGIC Insured
 
8/15 at 100.00
AA (6)
   
625,790
 
 
1,000
 
San Buenaventura, California, Wastewater Revenue Certificates of Participation, Series 2004, 5.000%, 3/01/24 (Pre-refunded 3/01/14) – NPFG Insured
 
3/14 at 100.00
AA– (6)
   
1,024,030
 
 
1,345
 
San Mateo Union High School District, San Mateo County, California, Certificates of Participation, Phase 1, Series 2007A, 5.000%, 12/15/30 (Pre-refunded 12/15/17) – AMBAC Insured
 
12/17 at 100.00
AA– (6)
   
1,559,662
 
 
600
 
West Patterson Financing Authority, California, Special Tax Bonds, Community Facilities District 01-1, Refunding Series 2009A, 8.625%, 9/01/39 (Pre-refunded 9/01/14)
 
9/14 at 105.00
N/R (6)
   
680,208
 
 
21,410
 
Total U.S. Guaranteed
         
22,871,072
 
     
Utilities – 8.1% (5.6% of Total Investments)
             
 
3,815
 
Long Beach Bond Finance Authority, California, Natural Gas Purchase Revenue Bonds, Series 2007A, 5.000%, 11/15/35
 
No Opt. Call
A
   
3,603,611
 
 
14,505
 
Los Angeles Department of Water and Power, California, Power System Revenue Bonds, Series 2012B, 5.000%, 7/01/43
 
7/22 at 100.00
AA–
   
14,658,892
 
     
Merced Irrigation District, California, Electric System Revenue Bonds, Series 2005:
             
 
2,000
 
5.000%, 9/01/26 – SYNCORA GTY Insured
 
9/15 at 100.00
N/R
   
2,009,060
 
 
1,285
 
5.125%, 9/01/31 – SYNCORA GTY Insured
 
9/15 at 100.00
N/R
   
1,267,910
 
 
2,500
 
Salinas Valley Solid Waste Authority, California, Revenue Bonds, Series 2002, 5.125%, 8/01/22 – AMBAC Insured (Alternative Minimum Tax)
 
2/14 at 100.00
A+
   
2,508,275
 
 
24,105
 
Total Utilities
         
24,047,748
 
     
Water and Sewer – 9.9% (6.9% of Total Investments)
             
     
Bay Area Water Supply and Conservation Agency, California, Revenue Bonds, Capital Cost Recovery Prepayment Program, Series 2013A:
             
 
3,000
 
5.000%, 10/01/29
 
4/23 at 100.00
AA–
   
3,161,040
 
 
3,000
 
5.000%, 10/01/34
 
4/23 at 100.00
AA–
   
3,078,030
 
 
1,070
 
Burbank, California, Wastewater System Revenue Bonds, Series 2004A, 5.000%, 6/01/22 – AMBAC Insured
 
6/14 at 100.00
AA+
   
1,105,289
 
     
California Pollution Control Financing Authority, Water Furnishing Revenue Bonds, Poseidon Resources Channelside Desalination Project, Series 2012:
             
 
2,685
 
5.000%, 7/01/37 (Alternative Minimum Tax)
 
No Opt. Call
Baa3
   
2,180,569
 
 
6,155
 
5.000%, 11/21/45 (Alternative Minimum Tax)
 
No Opt. Call
Baa3
   
4,832,844
 
 
3,000
 
East Valley Water District Financing Authority, California, Refunding Revenue Bonds, Series 2010, 5.000%, 10/01/40
 
10/20 at 100.00
AA–
   
2,925,960
 
 
1,125
 
Fortuna Public Finance Authority, California, Water Revenue Bonds, Series 2006, 5.000%, 10/01/36 – AGM Insured
 
10/16 at 100.00
AA–
   
1,094,906
 

Nuveen Investments
 
43
 
 
 

 

NZH
Nuveen California Dividend Advantage Municipal Fund 3 (continued)
 
Portfolio of Investments August 31, 2013 (Unaudited)

 
Principal
     
Optional Call
         
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
   
Value
 
     
Water and Sewer (continued)
             
$
890
 
Healdsburg Public Financing Authority, California, Wastewater Revenue Bonds, Series 2006, 5.000%, 4/01/36 – NPFG Insured
 
4/16 at 100.00
AA–
 
$
891,032
 
 
850
 
Marina Coast Water District, California, Enterprise Certificate of Participation, Series 2006, 5.000%, 6/01/31 – NPFG Insured
 
6/16 at 100.00
AA–
   
853,400
 
 
2,000
 
Metropolitan Water District of Southern California, Water Revenue Bonds, 2006 Authorization Series 2007A, 5.000%, 7/01/37
 
7/17 at 100.00
AAA
   
2,047,000
 
 
5,295
 
San Buenaventura Public Facilities Financing Authority, California, Water Revenue Bonds, Series 2012B, 5.000%, 7/01/42
 
7/22 at 100.00
AA
   
5,254,652
 
 
2,000
 
San Francisco City and County Public Utilities Commission, California, Water Revenue Bonds, Series 2009B, 5.000%, 11/01/39
 
No Opt. Call
AA–
   
2,010,400
 
 
31,070
 
Total Water and Sewer
         
29,435,122
 
$
488,374
 
Total Investments (cost $436,156,884) – 143.0%
         
426,418,148
 
     
Floating Rate Obligations – (0.3)%
         
(845,000
)
     
MuniFund Term Preferred Shares, at Liquidation Value – (53.5)% (7)
         
(159,544,500
)
     
Other Assets Less Liabilities – 10.8%
         
32,196,737
 
     
Net Assets Applicable to Common Shares – 100%
       
$
298,225,385
 
 
(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: 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: Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies.
(4)
Investment, or portion of investment, has been pledged to collateralize the net payment obligations for investments in inverse floating rate transactions.
(5)
At or subsequent to the end of the reporting period, this security is non-income producing. Non-income producing, in the case of a fixed-income security, generally denotes that the issuer has (1) defaulted on the payment of principal or interest, (2) is under the protection of the Federal Bankruptcy Court or (3) the Fund’s Adviser has concluded that the issue is not likely to meet its future interest payment obligations and has directed the Fund’s custodian to cease accruing additional income on the Fund’s records.
(6)
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. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities.
(7)
MuniFund Term Preferred Shares, at Liquidation Value as a percentage of Total Investments is 37.4%.
(IF)
Inverse floating rate investment.
(UB)
Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Note 3 – Portfolio Securities and Investments in Derivatives, Inverse Floating Rate Securities for more information.
 
See accompanying notes to financial statements.

44
 
Nuveen Investments
 
 
 

 

NKX
 
 
Nuveen California AMT-Free Municipal Income Fund
 
Portfolio of Investments
 
August 31, 2013 (Unaudited)

 
Principal
     
Optional Call
         
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
   
Value
 
     
Consumer Staples – 5.6% (3.8% of Total Investments)
             
$
1,350
 
California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Los Angeles County Securitization Corporation, Series 2006A, 5.600%, 6/01/36
 
12/18 at 100.00
BB–
 
$
1,076,814
 
     
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-1:
             
 
23,020
 
5.750%, 6/01/47
 
6/17 at 100.00
B
   
17,000,952
 
 
9,500
 
5.125%, 6/01/47
 
6/17 at 100.00
B
   
6,366,045
 
 
9,630
 
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-2, 5.300%, 6/01/37
 
6/22 at 100.00
B
   
6,804,751
 
 
43,500
 
Total Consumer Staples
         
31,248,562
 
     
Education and Civic Organizations – 0.6% (0.4% of Total Investments)
             
 
1,600
 
California Municipal Finance Authority, Revenue Bonds, Goodwill Industries of Sacramento Valley & Northern Nevada Project, Series 2012A, 6.875%, 1/01/42
 
1/22 at 100.00
N/R
   
1,628,688
 
 
800
 
California State University, Systemwide Revenue Bonds, Series 2005A, 5.000%, 11/01/25 – AMBAC Insured
 
5/15 at 100.00
Aa2
   
851,672
 
 
1,000
 
California State University, Systemwide Revenue Bonds, Series 2005C, 5.000%, 11/01/27 – NPFG Insured
 
11/15 at 100.00
Aa2
   
1,063,750
 
 
3,400
 
Total Education and Civic Organizations
         
3,544,110
 
     
Health Care – 18.6% (12.5% of Total Investments)
             
 
5,000
 
ABAG Finance Authority for Non-Profit Corporations, California, Cal-Mortgage Insured Revenue Bonds, Sansum-Santa Barbara Medical Foundation Clinic, Series 2002A, 5.600%, 4/01/26
 
10/13 at 100.00
A
   
5,017,100
 
 
1,630
 
California Health Facilities Financing Authority, Revenue Bonds, Childrens Hospital Los Angeles, Series 2010A, 5.250%, 7/01/38 – AGC Insured
 
7/20 at 100.00
AA–
   
1,563,333
 
 
1,255
 
California Health Facilities Financing Authority, Revenue Bonds, Children’s Hospital Los Angeles, Series 2012A, 5.000%, 11/15/29
 
No Opt. Call
BBB+
   
1,209,669
 
     
California Health Facilities Financing Authority, Revenue Bonds, City of Hope National Medical Center, Series 2012A:
             
 
1,000
 
5.000%, 11/15/35
 
No Opt. Call
AA–
   
976,980
 
 
1,625
 
5.000%, 11/15/39
 
No Opt. Call
AA–
   
1,544,108
 
 
2,000
 
California Health Facilities Financing Authority, Revenue Bonds, Memorial Health Services, Series 2012A, 5.000%, 10/01/33
 
No Opt. Call
AA–
   
2,002,800
 
 
5,375
 
California Health Facilities Financing Authority, Revenue Bonds, Sutter Health, Series 2007A, 5.000%, 11/15/42
 
11/16 at 100.00
AA–
   
5,098,134
 
 
2,000
 
California Statewide Communities Development Authority, Revenue Bonds, Cottage Health System Obligated Group, Series 2010, 5.000%, 11/01/40
 
11/20 at 100.00
AA–
   
1,949,100
 
 
5,585
 
California Statewide Communities Development Authority, Revenue Bonds, Kaiser Permanente, Series 2012A, 5.000%, 4/01/42
 
4/22 at 100.00
A+
   
5,375,227
 
 
4,543
 
California Statewide Communities Development Authority, Revenue Bonds, Saint Joseph Health System, Trust 2554, 18.234%, 7/01/47 – AGM Insured (IF)
 
7/18 at 100.00
AA–
   
4,601,332
 
 
1,000
 
California Statewide Communities Development Authority, Revenue Bonds, ValleyCare Health System, Series 2007A, 5.125%, 7/15/31
 
7/17 at 100.00
N/R
   
848,080
 
 
4,000
 
California Statewide Community Development Authority, Insured Health Facility Revenue Bonds, Catholic Healthcare West, Series 2008K, 5.500%, 7/01/41 – AGC Insured
 
7/17 at 100.00
AA–
   
4,084,400
 
     
California Statewide Community Development Authority, Revenue Bonds, Childrens Hospital of Los Angeles, Series 2007:
             
 
2,995
 
5.000%, 8/15/39 – NPFG Insured
 
8/17 at 100.00
A
   
2,771,723
 
 
6,500
 
5.000%, 8/15/47
 
8/17 at 100.00
BBB+
   
5,820,815
 
 
1,000
 
California Statewide Community Development Authority, Revenue Bonds, Daughters of Charity Health System, Series 2005A, 5.250%, 7/01/30
 
7/15 at 100.00
BBB–
   
1,003,130
 

Nuveen Investments
 
45
 
 
 

 

NKX
Nuveen California AMT-Free Municipal Income Fund (continued)
 
Portfolio of Investments August 31, 2013 (Unaudited)

 
Principal
     
Optional Call
         
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
   
Value
 
     
Health Care (continued)
             
$
14,745
 
California Statewide Community Development Authority, Revenue Bonds, Kaiser Permanante System, Series 2006, 5.000%, 3/01/41
 
3/16 at 100.00
A+
 
$
14,221,995
 
 
5,020
 
California Statewide Community Development Authority, Revenue Bonds, Kaiser Permanente System, Series 2006, 5.000%, 3/01/41 – BHAC Insured (UB)
 
3/16 at 100.00
AA+
   
5,005,091
 
 
4,060
 
California Statewide Community Development Authority, Revenue Bonds, Sherman Oaks Health System, Series 1998A, 5.000%, 8/01/22 – AMBAC Insured
 
No Opt. Call
A1
   
4,271,039
 
 
7,555
 
California Statewide Community Development Authority, Revenue Bonds, St. Joseph Health System, Series 2007A, 5.750%, 7/01/47 – FGIC Insured
 
7/18 at 100.00
AA–
   
7,996,514
 
 
10,000
 
California Statewide Community Development Authority, Revenue Bonds, Sutter Health, Series 2007C, 5.000%, 8/15/38 – AMBAC Insured
 
8/17 at 100.00
AA–
   
9,721,900
 
 
2,735
 
California Statewide Community Development Authority, Revenue Bonds, Trinity Health, Series 2011, 5.000%, 12/01/41
 
12/21 at 100.00
AA
   
2,634,653
 
 
2,500
 
Palomar Pomerado Health Care District, California, Certificates of Participation, Series 2009, 6.750%, 11/01/39
 
11/19 at 100.00
Baa3
   
2,557,775
 
     
Palomar Pomerado Health Care District, California, Certificates of Participation, Series 2010:
             
 
1,500
 
6.000%, 11/01/30
 
11/20 at 100.00
Baa3
   
1,487,175
 
 
1,145
 
6.000%, 11/01/41
 
11/20 at 100.00
Baa3
   
1,092,616
 
 
2,400
 
Rancho Mirage Joint Powers Financing Authority, California, Revenue Bonds, Eisenhower Medical Center, Series 2007A, 5.000%, 7/01/47
 
7/17 at 100.00
Baa2
   
2,104,224
 
 
7,670
 
Santa Clara County Financing Authority, California, Insured Revenue Bonds, El Camino Hospital, Series 2007A, 5.750%, 2/01/41 – AMBAC Insured
 
8/17 at 100.00
A+
   
7,884,453
 
 
104,838
 
Total Health Care
         
102,843,366
 
     
Housing/Multifamily – 0.8% (0.5% of Total Investments)
             
 
3,285
 
Independent Cities Finance Authority, California, Mobile Home Park Revenue Bonds, Rancho Vallecitos Mobile Home Park, Series 2013, 5.000%, 4/15/38
 
4/23 at 100.00
BBB
   
3,031,398
 
 
1,165
 
Poway, California, Housing Revenue Bonds, Revenue Bonds, Poinsettia Mobile Home Park, Series 2003, 5.000%, 5/01/23
 
5/14 at 101.00
AA–
   
1,176,417
 
 
4,450
 
Total Housing/Multifamily
         
4,207,815
 
     
Long-Term Care – 1.5% (1.0% of Total Investments)
             
 
3,000
 
ABAG Finance Authority for Non-Profit Corporations, California, Cal-Mortgage Insured Revenue Bonds, Channing House, Series 2010, 6.125%, 5/15/40
 
5/20 at 100.00
A
   
3,114,780
 
 
1,575
 
California Health Facilities Financing Authority, Insured Revenue Bonds, California-Nevada Methodist Homes, Series 2006, 5.000%, 7/01/36
 
7/16 at 100.00
A
   
1,491,777
 
 
2,250
 
California Health Facilities Financing Authority, Insured Revenue Bonds, Community Program for Persons with Developmental Disabilities, Series 2011A, 6.250%, 2/01/26
 
2/21 at 100.00
A
   
2,508,188
 
 
1,500
 
California Statewide Communities Development Authority, Revenue Bonds, Front Porch Communities and Services Project, Series 2007A, 5.125%, 4/01/37
 
4/17 at 100.00
BBB
   
1,341,495
 
 
8,325
 
Total Long-Term Care
         
8,456,240
 
     
Tax Obligation/General – 29.0% (19.5% of Total Investments)
             
 
3,000
 
Alhambra Unified School District, Los Angeles County, California, General Obligation Bonds, Refunding Series 2012A, 5.000%, 8/01/29 – AGM Insured
 
8/22 at 100.00
Aa3
   
3,093,510
 
 
1,425
 
Bassett Unified School District, Los Angeles County, California, General Obligation Bonds, Series 2006B, 5.250%, 8/01/30 – FGIC Insured
 
8/16 at 100.00
A
   
1,508,377
 
 
6,000
 
California State, General Obligation Bonds, Various Purpose Series 2010, 6.000%, 3/01/33
 
3/20 at 100.00
A1
   
6,765,300
 
     
California State, General Obligation Bonds, Various Purpose Series 2011:
             
 
1,000
 
5.250%, 9/01/25
 
9/21 at 100.00
A1
   
1,104,080
 
 
2,000
 
5.000%, 9/01/31
 
No Opt. Call
A1
   
2,065,220
 
 
4,090
 
5.000%, 9/01/41
 
9/21 at 100.00
A1
   
4,077,771
 
 
2,625
 
5.000%, 10/01/41
 
10/21 at 100.00
A1
   
2,617,020
 
 
4,665
 
California State, General Obligation Bonds, Various Purpose Series 2012, 5.000%, 4/01/42
 
4/22 at 100.00
A1
   
4,650,725
 
 
20,750
 
Coachella Valley Unified School District, Riverside County, California, General Obligation Bonds, Election 2005 Series 2010C, 0.000%, 8/01/43 – AGM Insured
 
No Opt. Call
AA–
   
3,310,248
 
 
7,575
 
Coast Community College District, Orange County, California, General Obligation Bonds, Series 2006C, 5.000%, 8/01/31 – AGM Insured
 
8/18 at 100.00
Aa1
   
7,777,177
 

46
 
Nuveen Investments
 
 
 

 

 
Principal
     
Optional Call
         
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
   
Value
 
     
Tax Obligation/General (continued)
             
$
2,500
 
Corona-Norco Unified School District, Riverside County, California, General Obligation Bonds, Election 2006 Series 2009B, 5.375%, 2/01/34 – AGC Insured
 
8/18 at 100.00
Aa2
 
$
2,606,000
 
     
East Side Union High School District, Santa Clara County, California, General Obligation Bonds, 2008 Election Series 2010B:
             
 
3,490
 
5.000%, 8/01/27 – AGC Insured
 
8/19 at 100.00
AA–
   
3,627,157
 
 
3,545
 
5.000%, 8/01/28 – AGC Insured
 
8/19 at 100.00
AA–
   
3,656,526
 
 
3,110
 
5.000%, 8/01/29 – AGC Insured
 
8/19 at 100.00
AA–
   
3,183,427
 
 
230
 
El Monte Union High School District, Los Angeles County, California, General Obligation Bonds, Series 2003A, 5.000%, 6/01/28 – AGM Insured
 
12/13 at 100.00
AA
   
230,568
 
 
7,100
 
Fontana Unified School District, San Bernardino County, California, General Obligation Bonds, Trust 2668, 9.686%, 2/01/16 – AGM Insured (IF)
 
No Opt. Call
AA–
   
7,997,156
 
 
5,000
 
Grossmont Healthcare District, California, General Obligation Bonds, Series 2007A, 5.000%, 7/15/37 – AMBAC Insured
 
7/17 at 100.00
Aa2
   
5,004,950
 
 
1,255
 
Los Angeles Community College District, Los Angeles County, California, General Obligation Bonds, Series 2005A, 5.000%, 8/01/24 – AGM Insured
 
8/15 at 100.00
Aa1
   
1,351,321
 
 
4,500
 
Mount Diablo Unified School District, Contra Costa County, California, General Obligation Bonds, Series 2010A, 0.000%, 8/01/30 – AGM Insured
 
8/25 at 100.00
AA–
   
2,818,575
 
 
3,000
 
Murrieta Valley Unified School District, Riverside County, California, General Obligation Bonds, Series 2007, 4.500%, 9/01/30 – AGM Insured
 
9/17 at 100.00
AA–
   
2,950,980
 
 
13,880
 
New Haven Unified School District, Alameda County, California, General Obligation Bonds, Series 2004A, 0.000%, 8/01/26 – NPFG Insured
 
No Opt. Call
Aa3
   
7,248,691
 
 
2,500
 
Oakland Unified School District, Alameda County, California, General Obligation Bonds, Series 2002, 5.250%, 8/01/21 – FGIC Insured
 
2/14 at 100.00
A
   
2,508,800
 
 
16,000
 
Poway Unified School District, San Diego County, California, School Facilities Improvement District 2007-1 General Obligation Bonds, Series 2011A, 0.000%, 8/01/46
 
No Opt. Call
Aa2
   
2,017,600
 
 
5,500
 
Sacramento City Unified School District, Sacramento County, California, General Obligation Bonds, Series 2005, 5.000%, 7/01/27 – NPFG Insured
 
7/15 at 100.00
A1
   
5,764,825
 
 
1,125
 
San Diego Unified School District, San Diego County, California, General Obligation Bonds, Election of 1998, Series 1999A, 0.000%, 7/01/21 – FGIC Insured
 
No Opt. Call
AA–
   
845,741
 
 
11,980
 
San Diego Unified School District, San Diego County, California, General Obligation Bonds, Refunding Series 2012 R-1, 0.000%, 7/01/31
 
No Opt. Call
AA–
   
4,388,873
 
 
10,000
 
San Francisco Bay Area Rapid Transit District, California, General Obligation Bonds, Election of 2004 Series 2007B, 5.000%, 8/01/32
 
8/17 at 100.00
AAA
   
10,448,100
 
 
2,000
 
San Francisco Community College District, California, General Obligation Bonds, Series 2002A, 5.000%, 6/15/26 – FGIC Insured
 
12/13 at 100.00
A2
   
2,006,860
 
 
5,000
 
San Jacinto Unified School District, Riverside County, California, General Obligation Bonds, Series 2007, 5.250%, 8/01/32 – AGM Insured
 
8/17 at 100.00
AA–
   
5,213,250
 
 
1,500
 
San Juan Capistano, California, General Obligation Bonds, Open Space Program, Tender Option Bond Trust 3646, 18.160%, 8/01/17 (IF)
 
No Opt. Call
AAA
   
1,548,660
 
     
San Ysidro School District, San Diego County, California, General Obligation Bonds, 1997 Election Series 2011F:
             
 
7,230
 
0.000%, 8/01/42 – AGM Insured
 
8/21 at 21.00
AA–
   
993,980
 
 
10,450
 
0.000%, 8/01/43 – AGM Insured
 
8/21 at 19.43
AA–
   
1,329,345
 
 
21,225
 
0.000%, 8/01/44 – AGM Insured
 
8/21 at 17.98
AA–
   
2,496,697
 
 
12,550
 
0.000%, 8/01/45 – AGM Insured
 
8/21 at 16.64
AA–
   
1,363,683
 
 
23,425
 
0.000%, 8/01/46 – AGM Insured
 
8/21 at 15.39
AA–
   
2,352,573
 
 
14,915
 
Southwestern Community College District, San Diego County, California, General Obligation Bonds, Election of 2008, Series 2011C, 0.000%, 8/01/41
 
No Opt. Call
Aa2
   
2,744,807
 
     
Stockton Unified School District, San Joaquin County, California, General Obligation Bonds, Election 2008 Series 2011D:
             
 
24,280
 
0.000%, 8/01/47 – AGC Insured
 
8/37 at 100.00
AA–
   
9,375,722
 
 
38,845
 
0.000%, 8/01/50 – AGM Insured
 
8/37 at 100.00
AA–
   
15,029,519
 
 
15,780
 
Sylvan Union School District, Stanislaus County, California, General Obligation Bonds, Election of 2006, Series 2010, 0.000%, 8/01/49 – AGM Insured
 
No Opt. Call
AA–
   
4,580,934
 
 
3,905
 
West Kern Community College District, California, General Obligation Bonds, Election 2004, Series 2007C, 5.000%, 10/01/32 – SYNCORA GTY Insured
 
11/17 at 100.00
A+
   
3,904,844
 

Nuveen Investments
 
47
 
 
 

 

NKX
Nuveen California AMT-Free Municipal Income Fund (continued)
 
Portfolio of Investments August 31, 2013 (Unaudited)

 
Principal
     
Optional Call
         
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
   
Value
 
     
Tax Obligation/General (continued)
             
$
12,520
 
Yosemite Community College District, California, General Obligation Bonds, Capital Appreciation, Election 2004, Series 2010D, 0.000%, 8/01/42
 
No Opt. Call
Aa2
 
$
3,906,991
 
 
341,470
 
Total Tax Obligation/General
         
160,466,583
 
     
Tax Obligation/Limited – 56.7% (38.0% of Total Investments)
             
 
2,235
 
Antioch Public Financing Authority, California, Lease Revenue Refunding Bonds, Municipal Facilities Project, Refunding Series 2002A, 5.500%, 1/01/32 – NPFG Insured
 
1/14 at 100.00
A
   
2,209,409
 
 
2,000
 
Baldwin Park Public Financing Authority, California, Sales Tax and Tax Allocation Bonds, Puente Merced Redevelopment Project, Series 2003, 5.250%, 8/01/21
 
8/17 at 100.00
BBB
   
2,045,660
 
     
Beaumont Financing Authority, California, Local Agency Revenue Bonds, Improvement Area 17A, Series 2013B:
             
 
1,740
 
5.000%, 9/01/28
 
9/23 at 100.00
N/R
   
1,663,892
 
 
2,075
 
5.000%, 9/01/34
 
9/23 at 100.00
N/R
   
1,912,756
 
 
655
 
Beaumont Financing Authority, California, Local Agency Revenue Bonds, Improvement Area 19C, Series 2013A, 5.000%, 9/01/27
 
9/23 at 100.00
N/R
   
635,114
 
 
7,895
 
Brea and Olinda Unified School District, Orange County, California, Certificates of Participation Refunding, Series 2002A, 5.125%, 8/01/26 – AGM Insured
 
2/14 at 100.00
AA–
   
7,922,869
 
 
1,165
 
Burbank Public Financing Authority, California, Revenue Refunding Bonds, Golden State Redevelopment Project, Series 2003A, 5.250%, 12/01/22 – AMBAC Insured
 
12/13 at 100.00
A
   
1,176,044
 
 
2,200
 
California Infrastructure and Economic Development Bank, Los Angeles County, Revenue Bonds, Department of Public Social Services, Series 2003, 5.000%, 9/01/28 – AMBAC Insured
 
9/14 at 100.00
AA–
   
2,227,236
 
     
California Infrastructure and Economic Development Bank, Revenue Bonds, North County Center for Self-Sufficiency Corporation, Series 2004:
             
 
1,215
 
5.000%, 12/01/19 – AMBAC Insured
 
12/13 at 100.00
AA+
   
1,229,082
 
 
1,535
 
5.000%, 12/01/20 – AMBAC Insured
 
12/13 at 100.00
AA+
   
1,552,714
 
 
1,615
 
5.000%, 12/01/21 – AMBAC Insured
 
12/13 at 100.00
AA+
   
1,633,637
 
 
1,780
 
5.000%, 12/01/23 – AMBAC Insured
 
12/13 at 100.00
AA+
   
1,800,541
 
 
3,725
 
California State Public Works Board, Lease Revenue Bonds, Department of Corrections & Rehabilitation, Series 2005J, 5.000%, 1/01/17 – AMBAC Insured
 
1/16 at 100.00
A2
   
4,067,253
 
     
California State Public Works Board, Lease Revenue Bonds, Department of Education, Riverside Campus Project, Series 2012H:
             
 
2,790
 
5.000%, 4/01/30
 
No Opt. Call
A2
   
2,811,176
 
 
2,065
 
5.000%, 4/01/31
 
No Opt. Call
A2
   
2,055,356
 
 
4,000
 
California State Public Works Board, Lease Revenue Bonds, Department of General Services, Capital East End Project, Series 2002A, 5.000%, 12/01/27 – AMBAC Insured
 
12/13 at 100.00
A2
   
3,999,960
 
 
3,100
 
California State Public Works Board, Lease Revenue Bonds, Department of Health Services, Richmond Lab, Series 2005B, 5.000%, 11/01/30 – SYNCORA GTY Insured
 
11/15 at 100.00
A2
   
3,099,783
 
 
1,990
 
California State Public Works Board, Lease Revenue Bonds, Judicial Council of California, Various Projects Series 2013A, 5.000%, 3/01/33
 
No Opt. Call
A2
   
1,958,339
 
 
4,000
 
California State Public Works Board, Lease Revenue Bonds, Various Capital Projects, Series 2009G-1, 5.750%, 10/01/30
 
10/19 at 100.00
A2
   
4,298,680
 
 
1,210
 
Capistrano Unified School District, Orange County, California, Special Tax Bonds, Community Facilities District, Series 2005, 5.000%, 9/01/24 – FGIC Insured
 
9/15 at 100.00
A
   
1,215,372
 
 
2,520
 
Chino Redevelopment Agency, California, Merged Chino Redevelopment Project Area Tax Allocation Bonds, Series 2006, 5.000%, 9/01/38 – AMBAC Insured
 
9/16 at 101.00
A–
   
2,327,396
 
 
9,890
 
Chula Vista Public Financing Authority, California, Pooled Community Facility District Assessment Revenue Bonds, Series 2005A, 4.500%, 9/01/27 – NPFG Insured
 
9/15 at 100.00
A
   
9,174,854
 
 
1,430
 
Cloverdale Community Development Agency, California, Tax Allocation Bonds, Cloverdale Redevelopment Project, Refunding Series 2006, 5.000%, 8/01/36 – AMBAC Insured
 
8/16 at 100.00
N/R
   
1,238,695
 
     
Compton Community Redevelopment Agency, California, Tax Allocation Revenue Bonds, Redevelopment Projects, Second Lien Series 2010B:
             
 
1,230
 
5.000%, 8/01/25
 
8/20 at 100.00
N/R
   
1,161,784
 
 
530
 
5.750%, 8/01/26
 
8/20 at 100.00
N/R
   
527,345
 
 
3,145
 
Culver City Redevelopment Agency, California, Tax Allocation Revenue Bonds, Redevelopment Project, Series 2002A, 5.125%, 11/01/25 – NPFG Insured
 
11/13 at 100.00
A
   
3,028,981
 

48
 
Nuveen Investments
 
 
 

 

 
Principal
     
Optional Call
         
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
   
Value
 
     
Tax Obligation/Limited (continued)
             
$
1,905
 
Dinuba Redevelopment Agency, California, Tax Allocation Bonds, Merged City of Dinuba Redevelopment Project and Dinuba Redevelopment Project 2, As Amended, Refunding Series 2001, 5.000%, 9/01/31 – NPFG Insured
 
3/14 at 100.00
A
 
$
1,734,122
 
     
El Monte, California, Senior Lien Certificates of Participation, Department of Public Services Facility Phase II, Series 2001:
             
 
10,730
 
5.000%, 1/01/21 – AMBAC Insured
 
1/14 at 100.00
A2
   
10,739,979
 
 
5,000
 
5.250%, 1/01/34 – AMBAC Insured
 
1/14 at 100.00
A2
   
4,685,000
 
 
3,000
 
Escondido Joint Powers Financing Authority, California, Lease Revenue Bonds, Water System Financing, Series 2012, 5.000%, 9/01/41
 
3/22 at 100.00
AA–
   
2,877,870
 
 
8,280
 
Fontana Public Financing Authority, California, Tax Allocation Revenue Bonds, North Fontana Redevelopment Project, Series 2005A, 5.000%, 10/01/32 – AMBAC Insured
 
10/15 at 100.00
A
   
7,766,226
 
 
1,000
 
Fullerton Community Facilities District 1, California, Special Tax Bonds, Amerige Heights, Refunding Series 2012, 5.000%, 9/01/32
 
9/22 at 100.00
A–
   
965,500
 
 
1,000
 
Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2013A, 5.000%, 6/01/30
 
6/23 at 100.00
A2
   
994,310
 
     
Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A:
             
 
7,250
 
5.000%, 6/01/35 – FGIC Insured
 
6/15 at 100.00
AA–
   
7,089,558
 
 
11,065
 
5.000%, 6/01/45 – AMBAC Insured
 
6/15 at 100.00
A2
   
10,160,326
 
 
7,500
 
5.000%, 6/01/45 – AGC Insured
 
6/15 at 100.00
AA–
   
6,992,400
 
 
20,000
 
Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement Asset-Backed Revenue Bonds, Tender Option Bonds Trust 4686, 8.933%, 6/01/45 – AGC Insured (IF) (4)
 
6/15 at 100.00
AA–
   
17,579,200
 
 
2,000
 
Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement Revenue Bonds, Tender Option Bonds Trust 2040, 10.715%, 6/01/45 – FGIC Insured (IF)
 
6/15 at 100.00
A2
   
1,509,440
 
 
3,315
 
Hesperia Public Financing Authority, California, Redevelopment and Housing Projects Tax Allocation Bonds, Series 2007A, 5.000%, 9/01/37 – SYNCORA GTY Insured
 
9/17 at 100.00
N/R
   
2,670,299
 
 
1,700
 
Hesperia Unified School District, San Bernardino County, California, Certificates of Participation, Capital Improvement, Series 2007, 5.000%, 2/01/41 – AMBAC Insured
 
2/17 at 100.00
A–
   
1,560,056
 
 
435
 
Indian Wells Redevelopment Agency, California, Tax Allocation Bonds, Consolidated Whitewater Project Area, Series 2003A, 5.000%, 9/01/20 – AMBAC Insured
 
9/13 at 100.00
BBB–
   
435,200
 
 
2,115
 
Inglewood Redevelopment Agency, California, Tax Allocation Bonds, Merged Redevelopment Project, Refunding Series 1998A, 5.250%, 5/01/23 – AMBAC Insured
 
No Opt. Call
N/R
   
2,174,601
 
     
Inglewood Redevelopment Agency, California, Tax Allocation Bonds, Merged Redevelopment Project, Subordinate Lien Series 2007A-1:
             
 
1,665
 
5.000%, 5/01/24 – AMBAC Insured
 
5/17 at 100.00
BB+
   
1,614,684
 
 
710
 
5.000%, 5/01/25 – AMBAC Insured
 
5/17 at 100.00
BB+
   
679,967
 
     
Jurupa Community Services District, California, Special Tax Bonds, Community Facilities District 39 Eastvale Area, Series 2012A:
             
 
1,000
 
5.000%, 9/01/37
 
9/22 at 100.00
N/R
   
907,850
 
 
2,000
 
5.125%, 9/01/42
 
9/22 at 100.00
N/R
   
1,816,760
 
 
3,500
 
La Quinta Redevelopment Agency, California, Tax Allocation Bonds, Redevelopment Project Area 1, Series 2001, 5.100%, 9/01/31 – AMBAC Insured
 
3/14 at 100.00
A+
   
3,407,565
 
 
3,130
 
La Quinta Redevelopment Agency, California, Tax Allocation Bonds, Redevelopment Project Area 1, Series 2002, 5.000%, 9/01/22 – AMBAC Insured
 
9/14 at 100.00
A+
   
3,164,993
 
 
4,790
 
La Quinta Redevelopment Agency, California, Tax Allocation Refunding Bonds, Redevelopment Project Area 1, Series 1998, 5.200%, 9/01/28 – AMBAC Insured
 
3/14 at 100.00
A+
   
4,795,509
 
     
Lancaster Redevelopment Agency, California, Tax Allocation Bonds, Combined Redevelopment Project Areas Housing Programs, Subordinate Refunding Series 2003:
             
 
2,505
 
4.750%, 8/01/23 – NPFG Insured
 
8/15 at 102.00
A
   
2,428,773
 
 
2,425
 
4.750%, 8/01/27 – NPFG Insured
 
8/15 at 102.00
A
   
2,206,653
 
 
5,880
 
Los Angeles Community Redevelopment Agency, California, Lease Revenue Bonds, Manchester Social Services Project, Series 2005, 5.000%, 9/01/37 – AMBAC Insured
 
9/15 at 100.00
A1
   
5,931,803
 
 
1,895
 
Los Angeles Community Redevelopment Agency, California, Tax Allocation Bonds, Bunker Hill Project, Series 2004A, 5.000%, 12/01/20 – AGM Insured
 
12/14 at 100.00
AA–
   
1,994,431
 
 
6,000
 
Los Angeles Municipal Improvement Corporation, California, Lease Revenue Bonds, Police Headquarters, Series 2006A, 4.750%, 1/01/31 – FGIC Insured
 
1/17 at 100.00
A+
   
5,833,860
 

Nuveen Investments
 
49
 
 
 

 

NKX
Nuveen California AMT-Free Municipal Income Fund (continued)
 
Portfolio of Investments August 31, 2013 (Unaudited)

 
Principal
     
Optional Call
         
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
   
Value
 
     
Tax Obligation/Limited (continued)
             
$
7,460
 
Los Angeles, California, Certificates of Participation, Municipal Improvement Corporation, Series 2003AW, 5.000%, 6/01/33 – AMBAC Insured
 
12/13 at 100.00
A+
 
$
7,478,202
 
 
1,500
 
Los Osos, California, Improvement Bonds, Community Services Wastewater Assessment District 1, Series 2002, 5.000%, 9/02/33 – NPFG Insured
 
9/13 at 100.00
A
   
1,321,575
 
 
9,270
 
Moreno Valley Community Redevelopment Agency, California, Tax Allocation Bonds, Series 2007A, 5.000%, 8/01/38 – AMBAC Insured
 
8/17 at 100.00
A–
   
8,562,236
 
 
800
 
Moreno Valley Unified School District, Riverside County, California, Special Tax Bonds, Community Facilities District 2003-1, Series 2004, 5.550%, 9/01/29
 
9/14 at 100.00
N/R
   
802,856
 
 
2,810
 
Oakland Joint Powers Financing Authority, California, Lease Revenue Bonds, Administration Building Projects, Series 2008B, 5.000%, 8/01/21 – AGC Insured
 
8/18 at 100.00
AA–
   
3,054,948
 
 
3,300
 
Pacifica, California, Certificates of Participation, Series 2008, 5.375%, 1/01/37 – AMBAC Insured
 
1/16 at 102.00
A–
   
3,328,908
 
 
5,000
 
Palm Desert Financing Authority, California, Tax Allocation Revenue Refunding Bonds, Project Area 1, Series 2002, 5.000%, 4/01/25 – NPFG Insured
 
10/13 at 101.00
A
   
4,962,900
 
 
1,000
 
Palm Springs Financing Authority, California, Lease Revenue Bonds, Convention Center Project, Refunding Series 2004A, 5.500%, 11/01/35 – NPFG Insured
 
11/14 at 102.00
A+
   
1,003,950
 
     
Patterson Public Finance Authority, California, Revenue Bonds, Community Facilities District 2001-1, Senior Series 2013A:
             
 
3,395
 
5.250%, 9/01/30
 
9/23 at 100.00
N/R
   
3,254,990
 
 
3,050
 
5.750%, 9/01/39
 
9/23 at 100.00
N/R
   
2,961,947
 
 
555
 
Patterson Public Finance Authority, California, Revenue Bonds, Community Facilities District 2001-1, Subordinate Lien Series 2013B , 5.875%, 9/01/39
 
9/23 at 100.00
N/R
   
533,927
 
 
4,140
 
Plumas County, California, Certificates of Participation, Capital Improvement Program, Series 2003A, 5.000%, 6/01/28 – AMBAC Insured
 
6/14 at 100.00
A
   
4,084,441
 
 
390
 
Poway Redevelopment Agency, California, Tax Allocation Refunding Bonds, Paguay Redevelopment Project, Series 2000, 5.750%, 6/15/33 – NPFG Insured
 
12/13 at 100.00
A
   
375,695
 
 
5,745
 
Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, First Subordinate Series 2009A, 0.000%, 8/01/32
 
8/26 at 100.00
A+
   
4,755,654
 
 
7,000
 
Rancho Cucamonga Redevelopment Agency, California, Tax Allocation Bonds, Housing Set-Aside, Rancho Project, Series 2007A, 5.000%, 9/01/34 – NPFG Insured
 
9/17 at 100.00
A+
   
6,396,390
 
 
3,000
 
Riverside County Public Financing Authority, California, Tax Allocation Bonds, Multiple Projects, Series 2005A, 5.000%, 10/01/35 – SYNCORA GTY Insured
 
10/15 at 100.00
BBB
   
2,782,290
 
     
Riverside County, California, Community Facilities District 05-8, Scott Road, Special Tax Bonds Series 2013:
             
 
660
 
5.000%, 9/01/32
 
9/22 at 100.00
N/R
   
593,366
 
 
1,250
 
5.000%, 9/01/42
 
9/22 at 100.00
N/R
   
1,059,563
 
 
1,000
 
Rocklin Unified School District, Placer County, California, Special Tax Bonds, Community Facilities District 1, Series 2004, 5.000%, 9/01/25 – NPFG Insured
 
9/13 at 100.00
AA–
   
1,000,090
 
 
5,000
 
Roseville Finance Authority, California, Special Tax Revenue Bonds, Series 2007A, 5.000%, 9/01/33 – AMBAC Insured
 
9/17 at 100.00
N/R
   
4,373,750
 
 
3,510
 
San Bernardino Joint Powers Financing Authority, California, Certificates of Participation Refunding, Police Station Financing Project, Series 1999, 5.500%, 9/01/20 – NPFG Insured
 
3/14 at 100.00
A
   
3,343,415
 
 
3,060
 
San Diego County, California, Certificates of Participation, Burnham Institute, Series 2006, 5.000%, 9/01/34
 
9/15 at 102.00
Baa2
   
2,903,665
 
 
4,930
 
San Diego Redevelopment Agency, California, Subordinate Lien Tax Increment and Parking Revenue Bonds, Centre City Project, Series 2003B, 5.250%, 9/01/26
 
9/13 at 100.00
A
   
4,929,606
 
 
380
 
San Francisco, California, Community Facilities District 6, Mission Bay South Public Improvements, Special Tax Refunding Bonds, Series 2013A, 5.000%, 8/01/33
 
8/22 at 100.00
N/R
   
362,018
 
 
5,150
 
San Jacinto Unified School District, Riverside County, California, Certificates of Participation, Series 2010, 5.375%, 9/01/40 – AGC Insured
 
9/20 at 100.00
AA–
   
5,150,000
 
 
4,000
 
San Jose Financing Authority, California, Lease Revenue Refunding Bonds, Convention Center Project, Series 2001F, 5.000%, 9/01/19 – NPFG Insured
 
9/13 at 100.00
AA
   
4,015,680
 
     
San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment Project, Series 2005A:
             
 
3,310
 
5.000%, 8/01/20 – NPFG Insured
 
8/15 at 100.00
A
   
3,403,210
 
 
5,025
 
5.000%, 8/01/28 – NPFG Insured
 
8/15 at 100.00
A
   
4,977,916
 

50
 
Nuveen Investments
 
 
 

 

 
Principal
     
Optional Call
         
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
   
Value
 
     
Tax Obligation/Limited (continued)
             
$
835
 
San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment Project, Series 2006C, 5.000%, 8/01/25 – NPFG Insured
 
8/17 at 100.00
A
 
$
827,577
 
 
1,000
 
San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment Project, Series 2007B, 4.250%, 8/01/36 – SYNCORA GTY Insured
 
8/17 at 100.00
BBB
   
792,470
 
     
San Marcos Public Facilities Authority, California, Special Tax Revenue Bonds, Refunding Series 2012D:
             
 
930
 
5.000%, 9/01/32
 
9/22 at 100.00
N/R
   
892,540
 
 
1,000
 
5.000%, 9/01/36
 
9/22 at 100.00
N/R
   
924,150
 
 
3,000
 
Santa Clara Redevelopment Agency, California, Tax Allocation Bonds, Bayshore North Project, Series 1999A, 5.500%, 6/01/23 – AMBAC Insured
 
12/13 at 100.00
A
   
3,035,070
 
     
Santa Clarita, California, Special Tax Bonds, Community Facilities District 2002-1 Valencia Town Center, Refunding Series 2012:
             
 
1,110
 
5.000%, 11/15/29
 
11/22 at 100.00
N/R
   
1,068,741
 
 
3,895
 
5.000%, 11/15/32
 
11/22 at 100.00
N/R
   
3,712,091
 
 
3,500
 
Stockton Public Financing Authority, California, Lease Revenue Bonds, Series 2004, 5.250%, 9/01/34 – FGIC Insured
 
9/14 at 100.00
A
   
2,946,160
 
     
Sweetwater Union High School District Public Financing Authority, California, Special Tax Revenue Bonds, Series 2005A:
             
 
3,565
 
5.000%, 9/01/25 – AGM Insured
 
9/15 at 100.00
AA–
   
3,579,224
 
 
5,510
 
5.000%, 9/01/28 – AGM Insured
 
9/15 at 100.00
AA–
   
5,558,543
 
 
2,160
 
Temecula Redevelopment Agency, California, Tax Allocation Revenue Bonds, Redevelopment Project 1, Series 2002, 5.125%, 8/01/27 – NPFG Insured
 
2/14 at 100.00
A
   
2,193,372
 
 
800
 
Tustin Community Redevelopment Agency, California, MCAS Project Area Tax Allocation Bonds, Series 2010, 5.000%, 9/01/35
 
9/18 at 102.00
A
   
740,664
 
     
Tustin Community Redevelopment Agency, California, Tax Allocation Housing Bonds Series 2010:
             
 
1,205
 
5.000%, 9/01/30 – AGM Insured
 
9/20 at 100.00
AA–
   
1,209,941
 
 
3,250
 
5.250%, 9/01/39 – AGM Insured
 
9/20 at 100.00
AA–
   
3,276,488
 
 
1,020
 
Washington Unified School District, Yolo County, California, Certificates of Participation, Series 2007, 5.125%, 8/01/37 – AMBAC Insured
 
8/17 at 100.00
A
   
1,022,285
 
 
3,455
 
William S. Hart Union High School District, Los Angeles County, California, Special Tax Bonds, Community Facilities District 2005-1, Series 2006, 5.300%, 9/01/36
 
9/15 at 100.00
N/R
   
3,241,274
 
 
2,670
 
Woodland Finance Authority, California, Lease Revenue Bonds, Series 2002, 5.000%, 3/01/32 – SYNCORA GTY Insured
 
9/13 at 100.00
A2
   
2,650,883
 
 
2,805
 
Yucaipa-Calimesa Joint Unified School District, San Bernardino County, California, Certificates of Participation, Refunding Series 2001A, 5.000%, 10/01/31 – NPFG Insured
 
10/13 at 100.00
A
   
2,621,048
 
 
326,930
 
Total Tax Obligation/Limited
         
313,756,572
 
     
Transportation – 3.4% (2.3% of Total Investments)
             
 
2,000
 
Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Bonds, Series 1995A, 5.000%, 1/01/35
 
1/14 at 100.00
BBB–
   
1,899,240
 
     
Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Refunding Bonds, Series 1999:
             
 
6,500
 
0.000%, 1/15/18 – NPFG Insured
 
1/14 at 80.02
A
   
5,052,905
 
 
7,500
 
5.875%, 1/15/29
 
1/14 at 101.00
BBB–
   
7,526,550
 
 
2,000
 
Los Angeles Department of Airports, California, Revenue Bonds, Los Angeles International Airport, Senior Lien Series 2010A, 5.000%, 5/15/40
 
5/20 at 100.00
AA
   
1,973,720
 
 
2,400
 
San Diego Unified Port District, California, Revenue Bonds, Series 2004B, 5.000%, 9/01/29 – NPFG Insured
 
9/14 at 100.00
A+
   
2,467,320
 
 
20,400
 
Total Transportation
         
18,919,735
 
     
U.S. Guaranteed – 10.0% (6.7% of Total Investments) (5)
             
     
Bonita Unified School District, San Diego County, California, General Obligation Bonds, Series 2004A:
             
 
1,890
 
5.250%, 8/01/23 (Pre-refunded 8/01/14) – NPFG Insured
 
8/14 at 100.00
AA (5)
   
1,977,866
 
 
1,250
 
5.250%, 8/01/25 (Pre-refunded 8/01/14) – NPFG Insured
 
8/14 at 100.00
AA (5)
   
1,308,113
 
 
2,250
 
California Infrastructure and Economic Development Bank, First Lien Revenue Bonds, San Francisco Bay Area Toll Bridge, Series 2003A, 5.000%, 7/01/36 (Pre-refunded 1/01/28) – AMBAC Insured
 
1/28 at 100.00
Aaa
   
2,596,140
 
 
2,200
 
California State University, Systemwide Revenue Bonds, Series 2005A, 5.000%, 11/01/25 (Pre-refunded 5/01/15) – AMBAC Insured
 
5/15 at 100.00
Aa2 (5)
   
2,370,962
 
 
500
 
California State, General Obligation Bonds, Series 2004, 5.250%, 4/01/34 (Pre-refunded 4/01/14)
 
4/14 at 100.00
AAA
   
514,890
 

Nuveen Investments
 
51
 
 
 

 

NKX
Nuveen California AMT-Free Municipal Income Fund (continued)
 
Portfolio of Investments August 31, 2013 (Unaudited)

 
Principal
     
Optional Call
         
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
   
Value
 
     
U.S. Guaranteed (5) (continued)
             
$
1,275
 
Central Unified School District, Fresno County, California, General Obligation Bonds, Series 1993, 5.625%, 3/01/18 – AMBAC Insured (ETM)
 
3/14 at 100.00
N/R (5)
 
$
1,308,023
 
     
El Segundo Unified School District, Los Angeles County, California, General Obligation Bonds, Series 2004:
             
 
2,580
 
5.250%, 9/01/21 (Pre-refunded 9/01/14) – FGIC Insured
 
9/14 at 100.00
AA– (5)
   
2,710,754
 
 
1,775
 
5.250%, 9/01/22 (Pre-refunded 9/01/14) – FGIC Insured
 
9/14 at 100.00
AA– (5)
   
1,864,957
 
 
6,000
 
Huntington Park Redevelopment Agency, California, Single Family Residential Mortgage Revenue Refunding Bonds, Series 1986A, 8.000%, 12/01/19 (ETM)
 
No Opt. Call
Aaa
   
8,237,220
 
     
Los Angeles County Sanitation Districts Financing Authority, California, Senior Revenue Bonds, Capital Projects, Series 2003A:
             
 
2,700
 
5.000%, 10/01/21 (Pre-refunded 10/01/13) – AGM Insured
 
10/13 at 100.00
AA+ (5)
   
2,711,205
 
 
4,500
 
5.000%, 10/01/23 (Pre-refunded 10/01/13) – AGM Insured
 
10/13 at 100.00
AA+ (5)
   
4,518,675
 
     
Los Rios Community College District, Sacramento, El Dorado and Yolo Counties, California, General Obligation Bonds, Series 2006C:
             
 
2,110
 
5.000%, 8/01/21 (Pre-refunded 8/01/14) – AGM Insured (UB)
 
8/14 at 102.00
Aa2 (5)
   
2,245,378
 
 
3,250
 
5.000%, 8/01/22 (Pre-refunded 8/01/14) – AGM Insured (UB)
 
8/14 at 102.00
Aa2 (5)
   
3,458,520
 
 
3,395
 
5.000%, 8/01/23 (Pre-refunded 8/01/14) – AGM Insured (UB)
 
8/14 at 102.00
Aa2 (5)
   
3,612,823
 
 
1,000
 
5.000%, 8/01/25 (Pre-refunded 8/01/14) – AGM Insured (UB)
 
8/14 at 102.00
Aa2 (5)
   
1,064,160
 
 
1,710
 
Manteca Financing Authority, California, Sewerage Revenue Bonds, Series 2003B, 5.000%, 12/01/33 (Pre-refunded 12/01/13) – NPFG Insured
 
12/13 at 100.00
Aa3 (5)
   
1,730,845
 
 
4,640
 
Rancho Mirage Joint Powers Financing Authority, California, Revenue Bonds, Eisenhower Medical Center, Series 2004, 5.875%, 7/01/26 (Pre-refunded 7/01/14)
 
7/14 at 100.00
Baa2 (5)
   
4,860,446
 
 
980
 
Roseville Joint Union High School District, Placer County, California, General Obligation Bonds, Series 2006B, 5.000%, 8/01/27 (Pre-refunded 8/01/15) – FGIC Insured
 
8/15 at 100.00
AA (5)
   
1,066,563
 
 
1,520
 
San Buenaventura, California, Water Revenue Certificates of Participation, Series 2004, 5.000%, 10/01/25 (Pre-refunded 10/01/14) – AMBAC Insured
 
10/14 at 100.00
AA (5)
   
1,597,566
 
     
Semitropic Water Storage District, Kern County, California, Water Banking Revenue Bonds, Series 2004A:
             
 
1,315
 
5.500%, 12/01/20 (Pre-refunded 12/01/14) – SYNCORA GTY Insured
 
12/14 at 100.00
A+ (5)
   
1,401,751
 
 
1,415
 
5.500%, 12/01/21 (Pre-refunded 12/01/14) – SYNCORA GTY Insured
 
12/14 at 100.00
A+ (5)
   
1,508,348
 
 
2,530
 
Yorba Linda Water District, California, Certificates of Participation, Highland Reservoir Renovation, Series 2003, 5.000%, 10/01/33 (Pre-refunded 10/01/13) – FGIC Insured
 
10/13 at 100.00
AA+ (5)
   
2,540,500
 
 
50,785
 
Total U.S. Guaranteed
         
55,205,705
 
     
Utilities – 5.3% (3.6% of Total Investments)
             
 
1,000
 
Anaheim Public Finance Authority, California, Second Lien Electric Distribution Revenue Bonds, Series 2004, 5.250%, 10/01/21 – NPFG Insured
 
10/14 at 100.00
AA–
   
1,047,520
 
     
Long Beach Bond Finance Authority, California, Natural Gas Purchase Revenue Bonds, Series 2007A:
             
 
2,490
 
5.000%, 11/15/35
 
No Opt. Call
A
   
2,352,029
 
 
945
 
5.500%, 11/15/37
 
No Opt. Call
A
   
940,785
 
 
10,000
 
Los Angeles Department of Water and Power, California, Power System Revenue Bonds, Series 2012B, 5.000%, 7/01/43
 
7/22 at 100.00
AA–
   
10,106,100
 
 
4,280
 
Los Angeles Department of Water and Power, California, Power System Revenue Bonds, Series 2013B, 5.000%, 7/01/28
 
7/23 at 100.00
AA–
   
4,589,016
 
 
3,750
 
Los Angeles Department of Water and Power, California, Power System Revenue Bonds, Tender Option Bond Trust 3345, 18.033%, 7/01/20 (IF) (4)
 
No Opt. Call
AA–
   
3,909,150
 
 
2,155
 
Merced Irrigation District, California, Electric System Revenue Bonds, Series 2005, 5.125%, 9/01/31 – SYNCORA GTY Insured
 
9/15 at 100.00
N/R
   
2,126,339
 
 
100
 
Sacramento City Financing Authority, California, Capital Improvement Revenue Bonds, Solid Waste and Redevelopment Projects, Series 1999, 5.800%, 12/01/19 – AMBAC Insured
 
12/13 at 100.00
N/R
   
100,117
 
 
4,000
 
Southern California Public Power Authority, California, Milford Wind Corridor Phase I Revenue Bonds, Series 2010-1, 5.000%, 7/01/28
 
1/20 at 100.00
AA–
   
4,216,920
 
 
28,720
 
Total Utilities
         
29,387,976
 
     
Water and Sewer – 17.5% (11.7% of Total Investments)
             
 
13,200
 
Atwater Public Financing Authority, California, Wastewater Revenue Bonds, Series 2010, 5.125%, 5/01/40 – AGM Insured
 
5/19 at 100.00
AA–
   
12,405,492
 
 
11,600
 
Bay Area Water Supply and Conservation Agency, California, Revenue Bonds, Capital Cost Recovery Prepayment Program, Series 2013A, 5.000%, 10/01/34
 
4/23 at 100.00
AA–
   
11,901,716
 

52
 
Nuveen Investments
 
 
 

 

 
Principal
     
Optional Call
         
 
Amount (000)
 
Description (1)
 
Provisions (2)
Ratings (3)
   
Value
 
     
Water and Sewer (continued)
             
$
7,200
 
California Pollution Control Financing Authority, Water Furnishing Revenue Bonds, Poseidon Resources Channelside Desalination Project, Series 2012, 5.000%, 11/21/45
 
No Opt. Call
Baa3
 
$
6,196,104
 
 
1,000
 
Castaic Lake Water Agency, California, Certificates of Participation, Series 2006C, 5.000%, 8/01/36 – NPFG Insured
 
8/16 at 100.00
AA–
   
1,001,300
 
 
3,230
 
El Dorado Irrigation District, California, Water and Sewer Certificates of Participation, Series 2004A, 5.000%, 3/01/21 – FGIC Insured
 
3/14 at 100.00
A+
   
3,303,192
 
 
2,250
 
Fortuna Public Finance Authority, California, Water Revenue Bonds, Series 2006, 5.000%, 10/01/36 – AGM Insured
 
10/16 at 100.00
AA–
   
2,189,813
 
 
1,480
 
Healdsburg Public Financing Authority, California, Wastewater Revenue Bonds, Series 2006, 5.000%, 4/01/36 – NPFG Insured
 
4/16 at 100.00
AA–
   
1,481,717
 
 
5,000
 
Indio Water Authority, California, Water Revenue Bonds, Series 2006, 5.000%, 4/01/31 – AMBAC Insured
 
4/16 at 100.00
A
   
5,079,600
 
 
12,230
 
Los Angeles County Sanitation Districts Financing Authority, California, Capital Projects Revenue Bonds, District 14, Series 2005, 5.000%, 10/01/34 – FGIC Insured
 
10/15 at 100.00
AA–
   
12,252,259
 
 
16,000
 
Los Angeles Department of Water and Power, California, Waterworks Revenue Bonds, Series 2012A, 5.000%, 7/01/43
 
7/22 at 100.00
AA
   
16,261,760
 
 
2,400
 
Los Angeles, California, Wastewater System Revenue Bonds, Subordinate Lien, Refunding Series 2013A, 5.000%, 6/01/35
 
6/23 at 100.00
AA
   
2,465,088
 
 
1,320
 
Marina Coast Water District, California, Enterprise Certificate of Participation, Series 2006, 5.000%, 6/01/31 – NPFG Insured
 
6/16 at 100.00
AA–
   
1,325,280
 
 
1,500
 
Placerville Public Financing Authority, California, Wastewater System Refinancing and Improvement Project Revenue Bonds, Series 2006, 5.000%, 9/01/34 – SYNCORA GTY Insured
 
9/16 at 100.00
N/R
   
1,297,305
 
 
9,000
 
San Diego County Water Authority, California, Water Revenue Certificates of Participation, Series 2008A, 5.000%, 5/01/38 – AGM Insured
 
5/18 at 100.00
AA+
   
9,032,850
 
 
3,675
 
San Dieguito Water District, California, Water Revenue Bonds, Refunding Series 2004, 5.000%, 10/01/23 – FGIC Insured
 
10/14 at 100.00
AA+
   
3,849,158
 
 
4,000
 
San Francisco City and County Public Utilities Commission, California, Water Revenue Bonds, Series 2011A, 5.000%, 11/01/28
 
No Opt. Call
AA–
   
4,250,400
 
     
Santa Clara Valley Water District, California, Certificates of Participation, Series 2004A:
             
 
1,400
 
5.000%, 2/01/19 – FGIC Insured
 
2/14 at 100.00
AAA
   
1,427,328
 
 
445
 
5.000%, 2/01/20 – FGIC Insured
 
2/14 at 100.00
AAA
   
453,646
 
 
465
 
5.000%, 2/01/21 – FGIC Insured
 
2/14 at 100.00
AAA
   
473,998
 
 
97,395
 
Total Water and Sewer
         
96,648,006
 
$
1,030,213
 
Total Investments (cost $837,785,132) – 149.0%
         
824,684,670
 
     
Floating Rate Obligations – (1.5)%
         
(8,240,000
)
     
Variable Rate Demand Preferred Shares, at Liquidation Value – (52.7)% (6)
         
(291,600,000
)
     
Other Assets Less Liabilities – 5.2%
         
28,800,675
 
     
Net Assets Applicable to Common Shares – 100%
       
$
553,645,345
 
 
(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: 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: Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies.
(4)
Investment, or portion of investment, has been pledged to collateralize the net payment obligations for investments in inverse floating rate transactions.
(5)
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. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities.
(6)
Variable Rate Demand Preferred Shares, at Liquidation Value as a percentage of Total Investments is 35.4%.
(ETM)
Escrowed to maturity.
(IF)
Inverse floating rate investment.
(UB)
Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Note 3 – Portfolio Securities and Investments in Derivatives, Inverse Floating Rate Securities for more information.
 
See accompanying notes to financial statements

Nuveen Investments
 
53

 
 

 
 
Statement of
 
Assets & Liabilities
 
August 31, 2013 (Unaudited)
 
 

     
California Premium
   
California Dividend
   
California Dividend
   
California Dividend
   
California AMT-
 
     
Income
   
Advantage
   
Advantage 2
   
Advantage 3
   
Free Income
 
     
(NCU
)
 
(NAC
)
 
(NVX
)
 
(NZH
)
 
(NKX
)
Assets
                               
Investments, at value (cost $115,676,474, $479,975,881, $299,183,367, $436,156,884 and $837,785,132, respectively)
 
$
118,361,945
 
$
476,630,488
 
$
293,552,149
 
$
426,418,148
 
$
824,684,670
 
Cash
   
1,335,167
   
   
   
   
 
Cash held in escrow(1)
   
   
   
97,893,731
   
   
 
Receivable for:
                               
Interest
   
1,531,154
   
7,626,415
   
4,619,124
   
7,383,020
   
11,895,006
 
Investments sold
   
   
19,442,954
   
12,486,100
   
28,914,155
   
26,549,987
 
Deferred offering costs
   
301,710
   
828,150
   
254,930
   
624,112
   
2,675,048
 
Other assets
   
7,035
   
178,207
   
122,677
   
68,139
   
313,970
 
Total assets
   
121,537,011
   
504,706,214
   
408,928,711
   
463,407,574
   
866,118,681
 
Liabilities
                               
Cash overdraft
   
   
969,691
   
1,061,204
   
2,463,068
   
3,723,802
 
Floating rate obligations
   
5,525,000
   
43,400,000
   
9,380,000
   
845,000
   
8,240,000
 
Payable for:
                               
Common share dividends
   
380,598
   
1,699,482
   
1,087,101
   
1,579,342
   
2,808,279
 
Interest
   
58,742
   
   
177,025
   
351,732
   
 
Investments purchased
   
   
8,129,736
   
   
   
5,078,069
 
MuniFund Term Preferred (MTP) Shares noticed for redemption, at liquidation value
   
   
   
97,846,300
   
   
 
Offering costs
   
   
132,524
   
255,000
   
   
236,617
 
MTP Shares, at liquidation value
   
35,250,000
   
   
   
159,544,500
   
 
Variable Rate Demand Preferred (VRDP) Shares, at liquidation value
   
   
136,200,000
   
98,000,000
   
   
291,600,000
 
Accrued expenses:
                               
Management fees
   
64,686
   
269,368
   
165,026
   
250,648
   
457,136
 
Reorganization
   
   
   
   
   
107,507
 
Trustees fees
   
501
   
61,695
   
37,226
   
58,270
   
17,272
 
Other
   
42,371
   
89,090
   
81,774
   
89,629
   
204,654
 
Total liabilities
   
41,321,898
   
190,951,586
   
208,090,656
   
165,182,189
   
312,473,336
 
Net assets applicable to common shares
 
$
80,215,113
 
$
313,754,628
 
$
200,838,055
 
$
298,225,385
 
$
553,645,345
 
Common shares outstanding
   
5,732,845
   
23,528,873
   
14,759,237
   
24,151,884
   
41,843,761
 
Net asset value per common share outstanding (net assets applicable to common shares, divided by common shares outstanding)
 
$
13.99
 
$
13.33
 
$
13.61
 
$
12.35
 
$
13.23
 
Net assets applicable to common shares consist of:
                               
Common shares, $.01 par value per share
 
$
57,328
 
$
235,289
 
$
147,592
 
$
241,519
 
$
418,438
 
Paid-in surplus
   
77,489,541
   
335,117,131
   
208,783,391
   
338,049,945
   
564,098,136
 
Undistributed (Over-distribution of) net investment income
   
1,086,225
   
4,568,192
   
1,450,168
   
149,311
   
4,925,652
 
Accumulated net realized gain (loss)
   
(1,103,452
)
 
(22,820,591
)
 
(3,911,878
)
 
(30,476,654
)
 
(2,696,419
)
Net unrealized appreciation (depreciation)
   
2,685,471
   
(3,345,393
)
 
(5,631,218
)
 
(9,738,736
)
 
(13,100,462
)
Net assets applicable to common shares
 
$
80,215,113
 
$
313,754,628
 
$
200,838,055
 
$
298,225,385
 
$
553,645,345
 
Authorized shares:
                               
Common
   
Unlimited
   
Unlimited
   
Unlimited
   
Unlimited
   
Unlimited
 
Preferred
   
Unlimited
   
Unlimited
   
Unlimited
   
Unlimited
   
Unlimited
 
 
(1)
Amounts deposited for the payment of MTP Shares noticed for redemption.
 
See accompanying notes to financial statements.
 
54
 
Nuveen Investments

 
 

 
 
Statement of
 
Operations
 
Six Months ended August 31, 2013 (Unaudited)
 
 

     
California Premium
   
California Dividend
   
California Dividend
   
California Dividend
   
California AMT-
 
     
Income
   
Advantage
   
Advantage 2
   
Advantage 3
   
Free Income
 
     
(NCU
)
 
(NAC
)
 
(NVX
)
 
(NZH
)
 
(NKX
)
Investment Income
 
$
3,216,843
 
$
13,054,322
 
$
8,520,691
 
$
13,085,147
 
$
22,602,503
 
Expenses
                               
Management fees
   
401,967
   
1,674,558
   
1,042,637
   
1,578,567
   
2,859,764
 
Shareholder servicing agent fees and expenses
   
10,314
   
1,410
   
11,019
   
13,567
   
7,619
 
Interest expense and amortization of offering costs
   
452,452
   
340,903
   
1,920,266
   
2,544,051
   
468,651
 
Liquidity fees
   
   
683,966
   
7,486
   
   
1,341,559
 
Remarketing fees
   
   
69,613
   
817
   
   
149,040
 
Custodian fees and expenses
   
14,777
   
45,297
   
33,384
   
49,945
   
77,625
 
Trustees fees and expenses
   
1,592
   
6,350
   
4,220
   
6,432
   
12,076
 
Professional fees
   
14,976
   
28,176
   
19,172
   
22,485
   
61,999
 
Shareholder reporting expenses
   
1,108
   
12,203
   
35,168
   
9,897
   
9,457
 
Stock exchange listing fees
   
7,991
   
11,995
   
16,222
   
11,858
   
3,828
 
Investor relations expenses
   
2,824
   
7,744
   
7,042
   
10,538
   
495
 
Other expenses
   
15,711
   
27,177
   
20,605
   
24,055
   
59,494
 
Total expenses
   
923,712
   
2,909,392
   
3,118,038
   
4,271,395
   
5,051,607
 
Net investment income (loss)
   
2,293,131
   
10,144,930
   
5,402,653
   
8,813,752
   
17,550,896
 
Realized and Unrealized Gain (Loss)
                               
Net realized gain (loss) from investments
   
(217,528
)
 
(1,235,529
)
 
(2,072,578
)
 
(4,518,231
)
 
(2,646,367
)
Change in net unrealized appreciation (depreciation) of investments
   
(10,790,153
)
 
(58,923,437
)
 
(37,107,266
)
 
(51,523,760
)
 
(95,087,155
)
Net realized and unrealized gain (loss)
   
(11,007,681
)
 
(60,158,966
)
 
(39,179,844
)
 
(56,041,991
)
 
(97,733,522
)
Net increase (decrease) in net assets applicable to common shares from operations
 
$
(8,714,550
)
$
(50,014,036
)
$
(33,777,191
)
$
(47,228,239
)
$
(80,182,626
)
 
See accompanying notes to financial statements.
 
Nuveen Investments
 
55

 
 

 
 
Statement of
 
Changes in Net Assets (Unaudited)

   
California Premium Income (NCU)
 
California Dividend Advantage (NAC)
 
California Dividend Advantage 2 (NVX)
 
     
Six Months
   
Year
   
Six Months
   
Year
   
Six Months
   
Year
 
     
Ended
   
Ended
   
Ended
   
Ended
   
Ended
   
Ended
 
     
8/31/13
   
2/28/13
   
8/31/13
   
2/28/13
   
8/31/13
   
2/28/13
 
Operations
                                     
Net investment income (loss)
 
$
2,293,131
 
$
4,512,923
 
$
10,144,930
 
$
19,796,683
 
$
5,402,653
 
$
12,479,454
 
Net realized gain (loss) from investments
   
(217,528
)
 
149,357
   
(1,235,529
)
 
(3,428,813
)
 
(2,072,578
)
 
636,916
 
Change in net unrealized appreciation (depreciation) of investments
   
(10,790,153
)
 
3,828,331
   
(58,923,437
)
 
29,421,942
   
(37,107,266
)
 
13,401,627
 
Net increase (decrease) in net assets applicable to common shares from operations
   
(8,714,550
)
 
8,490,611
   
(50,014,036
)
 
45,789,812
   
(33,777,191
)
 
26,517,997
 
Distributions to Common Shareholders
                                     
From net investment income
   
(2,407,795
)
 
(4,943,234
)
 
(10,446,820
)
 
(21,498,537
)
 
(6,641,657
)
 
(13,939,461
)
From accumulated net realized gains
   
   
   
   
   
   
 
Decrease in net assets applicable to common shares from distributions to common shareholders
   
(2,407,795
)
 
(4,943,234
)
 
(10,446,820
)
 
(21,498,537
)
 
(6,641,657
)
 
(13,939,461
)
Capital Share Transactions
                                     
Common shares:
                                     
Issued in the Reorganizations
   
   
   
   
   
   
 
Net proceeds from shares issued to shareholders due to reinvestment of distributions
   
   
34,943
   
119,833
   
601,534
   
20,251
   
184,119
 
Net increase (decrease) in net assets applicable to common shares from capital share transactions
   
   
34,943
   
119,833
   
601,534
   
20,251
   
184,119
 
Net increase (decrease) in net assets applicable to common shares
   
(11,122,345
)
 
3,582,320
   
(60,341,023
)
 
24,892,809
   
(40,398,597
)
 
12,762,655
 
Net assets applicable to common shares at the beginning of period
   
91,337,458
   
87,755,138
   
374,095,651
   
349,202,842
   
241,236,652
   
228,473,997
 
Net assets applicable to common shares at the end of period
 
$
80,215,113
 
$
91,337,458
 
$
313,754,628
 
$
374,095,651
 
$
200,838,055
 
$
241,236,652
 
Undistributed (Over-distribution of) net investment income at the end of period
 
$
1,086,225
 
$
1,200,889
 
$
4,568,192
 
$
4,870,082
 
$
1,450,168
 
$
2,689,172
 
 
See accompanying notes to financial statements.
 
56
 
Nuveen Investments

 
 

 
 
   
California Dividend Advantage 3 (NZH)
 
California AMT-Free Income (NKX)
 
     
Six Months
   
Year
   
Six Months
   
Year
 
     
Ended
   
Ended
   
Ended
   
Ended
 
     
8/31/13
   
2/28/13
   
8/31/13
   
2/28/13
 
Operations
                         
Net investment income (loss)
 
$
8,813,752
 
$
18,102,374
 
$
17,550,896
 
$
29,529,882
 
Net realized gain (loss) from investments
   
(4,518,231
)
 
150,288
   
(2,646,367
)
 
1,609,892
 
Change in net unrealized appreciation (depreciation) of investments
   
(51,523,760
)
 
21,398,391
   
(95,087,155
)
 
24,647,124
 
Net increase (decrease) in net assets applicable to common shares from operations
   
(47,228,239
)
 
39,651,053
   
(80,182,626
)
 
55,786,898
 
Distributions to Common Shareholders
                         
From net investment income
   
(9,709,057
)
 
(20,500,040
)
 
(17,574,380
)
 
(26,767,462
)
From accumulated net realized gains
   
   
   
   
(669,297
)
Decrease in net assets applicable to common shares from distributions to common shareholders
   
(9,709,057
)
 
(20,500,040
)
 
(17,574,380
)
 
(27,436,759
)
Capital Share Transactions
                         
Common shares:
                         
Issued in the Reorganizations
   
   
   
   
535,519,809
 
Net proceeds from shares issued to shareholders due to reinvestment of distributions
   
   
181,312
   
   
801,530
 
Net increase (decrease) in net assets applicable to common shares from capital share transactions
   
   
181,312
   
   
536,321,339
 
Net increase (decrease) in net assets applicable to common shares
   
(56,937,296
)
 
19,332,325
   
(97,757,006
)
 
564,671,478
 
Net assets applicable to common shares at the beginning of period
   
355,162,681
   
335,830,356
   
651,402,351
   
86,730,873
 
Net assets applicable to common shares at the end of period
 
$
298,225,385
 
$
355,162,681
 
$
553,645,345
 
$
651,402,351
 
Undistributed (Over-distribution of) net investment income at the end of period
 
$
149,311
 
$
1,044,616
 
$
4,925,652
 
$
4,949,136
 
 
See accompanying notes to financial statements.

Nuveen Investments
 
57

 
 

 
 
Statement of
  Cash Flows
 
Six Months ended August 31, 2013 (Unaudited)
 

   
California
 
California Dividend
 
California Dividend
 
   
Premium Income
 
Advantage
 
Advantage 2
 
   
(NCU
)
(NAC
)
(NVX
)
Cash Flows from Operating Activities:
                   
Net Increase (Decrease) In Net Assets Applicable to Common Shares from Operations
 
$
(8,714,550
)
$
(50,014,036
)
$
(33,777,191
)
Adjustments to reconcile the net increase (decrease) in net assets applicable to common shares from operations to net cash provided by (used in) operating activities:
                   
Purchases of investments
   
(12,422,302
)
 
(84,791,111
)
 
(66,372,399
)
Proceeds from sales and maturities of investments
   
13,552,926
   
79,010,868
   
81,548,035
 
Amortization (Accretion) of premiums and discounts, net
   
(56,370
)
 
26,852
   
(80,339
)
(Increase) Decrease in:
                   
Receivable for interest
   
628
   
(416,772
)
 
143,418
 
Receivable for investments sold
   
   
(17,282,954
)
 
(1,889,717
)
Other assets
   
(6,356
)
 
9,740
   
(86,474
)
Increase (Decrease) in:
                   
Payable for interest
   
(8
)
 
   
(841
)
Payable for investments purchased
   
   
4,906,377
   
(14,188,580
)
Accrued management fees
   
1,814
   
17,369
   
212
 
Accrued reorganization expenses
   
   
   
 
Accrued Trustees fees
   
14
   
1,505
   
1,024
 
Accrued other expenses
   
(13,022
)
 
(26,211
)
 
(5,589
)
Net realized (gain) loss from investments
   
217,528
   
1,235,529
   
2,072,578
 
Change in net unrealized (appreciation) depreciation of investments
   
10,790,153
   
58,923,437
   
37,107,266
 
Taxes paid on undistributed capital gains
   
(48
)
 
   
(680
)
Net cash provided by (used in) operating activities
   
3,350,407
   
(8,399,407
)
 
4,470,723
 
Cash Flows from Financing Activities:
                   
Increase (Decrease) in:
                   
Cash held in escrow(1)
   
   
   
(97,893,731
)
Deferred offering costs
   
145,437
   
(152,961
)
 
699,655
 
Increase (Decrease) in:
                   
Cash overdraft
   
   
969,691
   
1,061,204
 
Floating rate obligations
   
   
17,480,000
   
 
Payable for MTP Shares noticed for redemption, at liquidation value
   
   
   
97,846,300
 
Payable for offering costs
   
(59,753
)
 
132,524
   
126,276
 
MTP Shares, at liquidation value
   
   
   
(97,846,300
)
VRDP Shares, at liquidation value
   
   
   
98,000,000
 
Cash distributions paid to common shareholders
   
(2,407,281
)
 
(10,234,882
)
 
(6,617,629
)
Net cash provided by (used in) financing activities
   
(2,321,597
)
 
8,194,372
   
(4,624,225
)
Net Increase (Decrease) in Cash
   
1,028,810
   
(205,035
)
 
(153,502
)
Cash at the beginning of period
   
306,357
   
205,035
   
153,502
 
Cash at the End of Period
 
$
1,335,167
 
$
 
$
 
 
(1)        Amounts deposited for the payment of MTP Shares noticed for redemption.
 
Supplemental Disclosure of Cash Flow Information
 
   
California
 
California Dividend
 
California Dividend
 
   
Premium Income
 
Advantage
 
Advantage 2
 
     
(NCU
)
 
(NAC
)
 
(NVX
)
Cash paid for interest (excluding amortization of offering costs)
 
$
366,777
 
$
328,864
 
$
1,098,779
 
Non-cash financing activities not included herein consists of reinvestments of common share distributions
   
   
119,833
   
20,251
 
 
See accompanying notes to financial statements.
 
58
 
Nuveen Investments

 
 

 
 
         
California
 
   
California Dividend
 
AMT-Free
 
   
Advantage 3
 
Income
 
     
(NZH
)
 
(NKX
)
Cash Flows from Operating Activities:
             
Net Increase (Decrease) In Net Assets Applicable to Common Shares from Operations
 
$
(47,228,239
)
$
(80,182,626
)
Adjustments to reconcile the net increase (decrease) in net assets applicable to common shares from operations to net cash provided by (used in) operating activities:
             
Purchases of investments
   
(93,539,520
)
 
(123,403,076
)
Proceeds from sales and maturities of investments
   
128,937,573
   
162,659,427
 
Amortization (Accretion) of premiums and discounts, net
   
210,858
   
(1,240,584
)
(Increase) Decrease in:
             
Receivable for interest
   
553,370
   
(324,458
)
Receivable for investments sold
   
(28,689,155
)
 
(26,329,987
)
Other assets
   
(11,581
)
 
19,522
 
Increase (Decrease) in:
             
Payable for interest
   
23
   
 
Payable for investments purchased
   
(9,614,586
)
 
5,078,069
 
Accrued management fees
   
1,717
   
10,992
 
Accrued reorganization expenses
   
   
4,772
 
Accrued Trustees fees
   
1,536
   
3,916
 
Accrued other expenses
   
(28,731
)
 
(67,006
)
Net realized (gain) loss from investments
   
4,518,231
   
2,646,367
 
Change in net unrealized (appreciation) depreciation of investments
   
51,523,760
   
95,087,155
 
Taxes paid on undistributed capital gains
   
(116
)
 
 
Net cash provided by (used in) operating activities
   
6,635,140
   
33,962,483
 
Cash Flows from Financing Activities:
             
Increase (Decrease) in:
             
Cash held in escrow(1)
   
   
 
Deferred offering costs
   
712,098
   
(87,730
)
Increase (Decrease) in:
             
Cash overdraft balance
   
2,463,068
   
(296,978
)
Floating rate obligations
   
   
(15,885,000
)
Payable for MTP Shares noticed for redemption, at liquidation value
   
   
 
Payable for offering costs
   
(281,183
)
 
(118,302
)
MTP Shares, at liquidation value
   
   
 
VRDP Shares, at liquidation value
   
   
 
Cash distributions paid to common shareholders
   
(9,707,828
)
 
(17,574,473
)
Net cash provided by (used in) financing activities
   
(6,813,845
)
 
(33,962,483
)
Net Increase (Decrease) in Cash
   
(178,705
)
 
 
Cash at the beginning of period
   
178,705
   
 
Cash at the End of Period
 
$
 
$
 
 
(1)       Amounts deposited for the payment of MTP Shares noticed for redemption.
 
Supplemental Disclosure of Cash Flow Information
 
           
California
 
   
California Dividend
 
AMT-Free
 
   
Advantage 3
 
Income
 
     
(NZH
)
 
(NKX
)
Cash paid for interest (excluding amortization of offering costs)
 
$
2,113,113
 
$
421,381
 
Non-cash financing activities not included herein consists of reinvestments of common share distributions
   
   
 
 
See accompanying notes to financial statements.
 
Nuveen Investments
 
59

 
 

 
 
Financial
 
Highlights (Unaudited)
 
Selected data for a common share outstanding throughout each period:

       
Investment Operations
 
Less Distributions
             
   
Beginning
Common
Share
Net Asset
Value
 
Net
Investment
Income
(Loss)
 
Net
Realized/
Unrealized
Gain (Loss)
 
Distributions
from Net
Investment
Income to
Auction Rate
Preferred Shareholders
(a)
Distributions
from
Accumulated
Net
Realized
Gains to
Auction Rate
Preferred Shareholders
(a)
Total
 
From
Net
Investment
Income to
Common
Share-
holders
 
From
Accumu-
lated
Net
Realized
Gains to
Common
Share-
holders
 
Total
 
Discount
from
Common
Shares
Repurchased
and
Retired
 
Ending
Common
Share
Net Asset
Value
 
Ending
Market
Value
 
California Premium Income (NCU)
                                                       
Year Ended 2/28-2/29:
                                                             
2014(g)
 
$
15.93
 
$
.40
 
$
(1.92
)
$
 
$
 
$
(1.52
)
$
(.42
)
$
 
$
(.42
)
$
 
$
13.99
 
$
12.80
 
2013
   
15.31
   
.79
   
.69
   
   
   
1.48
   
(.86
)
 
   
(.86
)
 
   
15.93
   
15.78
 
2012
   
12.96
   
.84
   
2.38
   
   
   
3.22
   
(.87
)
 
   
(.87
)
 
   
15.31
   
15.15
 
2011
   
13.71
   
.92
   
(.79
)
 
(.02
)
 
   
.11
   
(.86
)
 
   
(.86
)
 
**   
12.96
   
12.28
 
2010
   
12.37
   
.95
   
1.13
   
(.03
)
 
   
2.05
   
(.72
)
 
   
(.72
)
 
.01
   
13.71
   
12.11
 
2009(f)
   
13.67
   
.43
   
(1.29
)
 
(.10
)
 
**   
(.96
)
 
(.33
)
 
(.01
)
 
(.34
)
 
**   
12.37
   
10.06
 
Year Ended 8/31:
                                                                     
2008
   
14.06
   
.92
   
(.43
)
 
(.24
)
 
   
.25
   
(.64
)
 
   
(.64
)
 
   
13.67
   
12.58
 
                                                                           
California Dividend Advantage (NAC)
                                                 
Year Ended 2/28-2/29:
                                                             
2014(g)
   
15.90
   
.43
   
(2.56
)
 
   
   
(2.13
)
 
(.44
)
 
   
(.44
)
 
   
13.33
   
12.28
 
2013
   
14.87
   
.84
   
1.11
   
   
   
1.95
   
(.92
)
 
   
(.92
)
 
   
15.90
   
15.81
 
2012
   
12.68
   
.94
   
2.17
   
(.01
)
 
   
3.10
   
(.91
)
 
   
(.91
)
 
   
14.87
   
15.14
 
2011
   
13.88
   
.98
   
(1.27
)
 
(.02
)
 
   
(.31
)
 
(.89
)
 
   
(.89
)
 
   
12.68
   
12.20
 
2010
   
12.10
   
1.01
   
1.63
   
(.03
)
 
(.02
)
 
2.59
   
(.81
)
 
   
(.81
)
 
   
13.88
   
12.60
 
2009(f)
   
14.43
   
.49
   
(2.07
)
 
(.09
)
 
(.02
)
 
(1.69
)
 
(.38
)
 
(.26
)
 
(.64
)
 
   
12.10
   
10.82
 
Year Ended 8/31:
                                                                 
2008
   
14.93
   
1.02
   
(.50
)
 
(.23
)
 
(.01
)
 
.28
   
(.74
)
 
(.04
)
 
(.78
)
 
   
14.43
   
13.44
 
 
(a)
The amounts shown are based on common share equivalents.
(b)
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.
 
60
 
Nuveen Investments

 
 

 

   
Ratios/Supplemental Data
 
Total Returns
     
Ratios to Average Net Assets
Applicable to Common Shares
Before Reimbursement(c)
 
Ratios to Average Net Assets
Applicable to Common Shares
After Reimbursement(c)(d)
     
                                 
 
Based
on
Common
Share Net
Asset
Value
(b)
Based
on
Market
Value
(b)
Ending
Net
Assets
Applicable
to Common
Shares (000)
 
Expenses
(e)
Net
Investment
Income (Loss)
 
Expenses
(e)
Net
Investment
Income (Loss)
 
Portfolio
Turnover
Rate
(h)
                                                 
                                                 
   
(9.71
)%
 
(16.47
)%
$
80,215
   
2.09
%*
 
5.20
%*
 
N/A
   
N/A
   
10
%
   
9.89
   
10.10
   
91,337
   
2.12
   
5.01
   
N/A
   
N/A
   
10
 
   
25.65
   
31.68
   
87,755
   
2.29
   
6.02
   
N/A
   
N/A
   
14
 
   
.63
   
8.34
   
74,275
   
1.69
   
6.66
   
N/A
   
N/A
   
5
 
   
17.06
   
28.13
   
78,581
   
1.30
   
7.18
   
N/A
   
N/A
   
10
 
   
(6.92
)
 
(17.22
)
 
71,260
   
1.57
 
7.06
 
N/A
   
N/A
   
14
 
   
1.81
   
1.51
   
78,966
   
1.34
   
6.56
   
N/A
   
N/A
   
5
 
                                                 
                                                 
   
(13.60
)
 
(19.79
)
 
313,755
   
1.64
 
5.71
 
N/A
   
N/A
   
15
 
   
13.39
   
10.80
   
374,096
   
1.60
   
5.44
   
N/A
   
N/A
   
12
 
   
25.30
   
32.82
   
349,203
   
1.50
   
6.84
   
N/A
   
N/A
   
13
 
   
(2.57
)
 
3.54
   
297,629
   
1.18
   
7.18
   
N/A
   
N/A
   
20
 
   
21.97
   
24.62
   
325,791
   
1.21
   
7.63
   
1.18
%
 
7.66
%
 
4
 
   
(11.45
)
 
(14.14
)
 
284,221
   
1.31
 
7.92
 
1.24
 
7.99
 
14
 
   
1.85
   
(.84
)
 
338,732
   
1.26
   
6.77
   
1.11
   
6.92
   
19
 
 
(c)
Ratios do not reflect the effect of dividend payments to Auction Rate Preferred shareholders, where applicable; Net Investment Income (Loss) ratios reflect income earned and expenses incurred on assets attributable to Auction Rate Preferred Shares (“ARPS”), MTP Shares and/or VRDP Shares, where applicable.
(d)
After expense reimbursement from the Adviser, where applicable. As of July 31, 2009, the Adviser is no longer reimbursing California Dividend Advantage (NAC) for any fees or expenses.
(e)
The expense ratios reflect, among other things, all interest expense and other costs related to MTP Shares, VRDP Shares and/or the interest expense deemed to have been paid by the Fund on the floating rate certificates issued by the special purpose trusts for the self-deposited inverse floaters held by the Fund, where applicable, each as described in Note 1 – General Information and Significant Accounting Policies, MuniFund Term Preferred Shares and Variable Rate Demand Preferred Shares and Note 3 –Portfolio Securities and Investments in Derivatives, Inverse Floating Rate Securities, respectively, as follows:
 
California Premium Income (NCU)
       
Year Ended 2/28-2/29:
       
2014(g)
   
1.03
%*
2013
   
1.01
 
2012
   
1.14
 
2011
   
.55
 
2010
   
.06
 
2009(f)
   
.20
Year Ended 8/31:
       
2008
   
.11
 

California Dividend Advantage (NAC)
       
Year Ended 2/28-2/29:
       
2014(g)
   
.62
%*
2013
   
.61
 
2012
   
.46
 
2011
   
.06
 
2010
   
.08
 
2009(f)
   
.14
Year Ended 8/31:
       
2008
   
.11
 
 
(f)
For the six months ended February 28, 2009.
(g)
For the six months ended August 31, 2013.
(h)
Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 5 – Investment Transactions) divided by the average long-term market value during the period.
*
Annualized.
**
Rounds to less than $.01 per share.
N/A
Fund did not have, or no longer has, a contractual reimbursement agreement with the Adviser.
 
See accompanying notes to financial statements.
 
Nuveen Investments
 
61

 
 

 
Financial Highlights (Unaudited) (continued)
 
Selected data for a common share outstanding throughout each period:
 
       
Investment Operations
 
Less Distributions
             
   
Beginning
Common
Share
Net Asset
Value
 
Net
Investment
Income
(Loss)
 
Net
Realized/
Unrealized
Gain (Loss)
 
Distributions
from Net
Investment
Income to
Auction Rate
Preferred Shareholders
(a)
Distributions
from
Accumulated
Net
Realized
Gains to
Auction Rate
Preferred Shareholders
(a)
Total
 
From
Net
Investment
Income to
Common
Share-
holders
 
From
Accumu-
lated
Net
Realized
Gains to
Common
Share-
holders
 
Total
 
Discount
from
Common
Shares
Repurchased
and
Retired
 
Ending
Common
Share
Net Asset
Value
 
Ending
Market
Value
 
California Dividend Advantage 2 (NVX)
                                                 
Year Ended 2/28-2/29:
                                                             
2014(g)
 
$
16.35
 
$
.37
 
$
(2.66
)
$
 
$
 
$
(2.29
)
$
(.45
)
$
 
$
(.45
)
$
 
$
13.61
 
$
12.76
 
2013
   
15.49
   
.85
   
.96
   
   
   
1.81
   
(.95
)
 
   
(.95
)
 
   
16.35
   
16.30
 
2012
   
13.47
   
.90
   
2.08
   
**   
   
2.98
   
(.96
)
 
   
(.96
)
 
   
15.49
   
15.58
 
2011
   
14.49
   
1.03
   
(1.07
)
 
(.02
)
 
   
(.06
)
 
(.96
)
 
   
(.96
)
 
   
13.47
   
12.83
 
2010
   
12.91
   
1.07
   
1.43
   
(.04
)
 
   
2.46
   
(.88
)
 
   
(.88
)
 
**   
14.49
   
13.56
 
2009(f)
   
14.39
   
.51
   
(1.47
)
 
(.11
)
 
(.01
)
 
(1.08
)
 
(.36
)
 
(.04
)
 
(.40
)
 
**   
12.91
   
10.51
 
Year Ended 8/31:
                                                                   
2008
   
14.69
   
1.01
   
(.37
)
 
(.25
)
 
   
.39
   
(.69
)
 
   
(.69
)
 
   
14.39
   
12.67
 
                                                                           
California Dividend Advantage 3 (NZH)
                                                 
Year Ended 2/28-2/29:
                                                             
2014(g)
   
14.71
   
.36
   
(2.32
)
 
   
   
(1.96
)
 
(.40
)
 
   
(.40
)
 
   
12.35
   
11.54
 
2013
   
13.91
   
.75
   
.90
   
   
   
1.65
   
(.85
)
 
   
(.85
)
 
   
14.71
   
14.25
 
2012
   
12.13
   
.82
   
1.86
   
**   
   
2.68
   
(.90
)
 
   
(.90
)
 
   
13.91
   
14.35
 
2011
   
13.18
   
.88
   
(1.02
)
 
(.01
)
 
   
(.15
)
 
(.90
)
 
   
(.90
)
 
   
12.13
   
11.67
 
2010
   
11.53
   
.98
   
1.53
   
(.03
)
 
   
2.48
   
(.83
)
 
   
(.83
)
 
   
13.18
   
12.67
 
2009(f)
   
13.62
   
.50
   
(2.13
)
 
(.09
)
 
   
(1.72
)
 
(.37
)
 
   
(.37
)
 
**   
11.53
   
10.23
 
Year Ended 8/31:
                                                                   
2008
   
14.25
   
1.03
   
(.70
)
 
(.25
)
 
   
.08
   
(.71
)
 
   
(.71
)
 
   
13.62
   
12.87
 
 
(a)
The amounts shown are based on common share equivalents.
(b)
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.
 
62
 
Nuveen Investments

 
 

 

   
Ratios/Supplemental Data
Total Returns
     
Ratios to Average Net Assets
Applicable to Common Shares
Before Reimbursement(c)
 
Ratios to Average Net Assets
Applicable to Common Shares
After Reimbursement(c)(d)
     
                                 
 
Based
on
Common
Share Net
Asset
Value
(b)
Based
on
Market
Value
(b)
Ending
Net
Assets
Applicable
to Common
Shares (000)
 
Expenses
(e)
Net
Investment
Income (Loss)
 
Expenses
(e)
Net
Investment
Income (Loss)
 
Portfolio
Turnover
Rate
(h)
                                                 
                                                 
   
(14.24
)%
 
(19.19
)%
$
200,838
   
2.48
%*
 
4.97
%*
 
N/A
   
N/A
   
20
%
   
11.94
   
11.03
   
241,237
   
2.19
   
5.29
   
N/A
   
N/A
   
23
 
   
22.90
   
30.01
   
228,474
   
2.30
   
6.29
   
2.30
%
 
6.30
%
 
12
 
   
(.64
)
 
1.37
   
198,675
   
1.36
   
7.10
   
1.28
   
7.19
   
13
 
   
19.52
   
38.29
   
213,687
   
1.20
   
7.58
   
1.04
   
7.74
   
4
 
   
(7.40
)
 
(13.83
)
 
190,824
   
1.37
 
7.85
 
1.14
 
8.08
 
7
 
                                                 
   
2.76
   
(2.80
)
 
212,890
   
1.25
   
6.56
   
.99
   
6.83
   
20
 
                                                 
                                                 
   
(13.54
)
 
(16.41
)
 
298,225
   
2.53
 
5.22
 
N/A
   
N/A
   
19
 
   
12.15
   
5.41
   
355,163
   
2.53
   
5.22
   
N/A
   
N/A
   
20
 
   
22.89
   
31.93
   
335,830
   
2.56
   
6.28
   
2.52
   
6.33
   
18
 
   
(1.40
)
 
(1.21
)
 
292,563
   
2.07
   
6.61
   
1.94
   
6.74
   
16
 
   
22.17
   
32.93
   
317,860
   
1.36
   
7.68
   
1.16
   
7.88
   
6
 
   
(12.54
)
 
(17.58
)
 
278,056
   
1.39
 
8.50
 
1.13
 
8.75
 
9
 
                                                 
   
.60
   
.46
   
328,659
   
1.21
   
6.96
   
.90
   
7.27
   
23
 
 
(c)
Ratios do not reflect the effect of dividend payments to Auction Rate Preferred shareholders, where applicable; Net Investment Income (Loss) ratios reflect income earned and expenses incurred on assets attributable to ARPS, MTP Shares and/or VRDP Shares, where applicable.
(d)
After expense reimbursement from the Adviser, where applicable. As of March 31, 2011 and September 30, 2011, the Adviser is no longer reimbursing California Dividend Advantage 2 (NVX) and California Dividend Advantage 3 (NZH), respectively, for any fees or expenses.
(e)
The expense ratios reflect, among other things, all interest expense and other costs related to MTP Shares, VRDP Shares and/or the interest expense deemed to have been paid by the Fund on the floating rate certificates issued by the special purpose trusts for the self-deposited inverse floaters held by the Fund, where applicable, each as described in Note 1 – General Information and Significant Accounting Policies, MuniFund Term Preferred Shares and Variable Rate Demand Preferred Shares and Note 3 –Portfolio Securities and Investments in Derivatives, Inverse Floating Rate Securities, respectively, as follows:
 
California Dividend Advantage 2 (NVX)
       
Year Ended 2/28-2/29:
       
2014(g)
   
1.44
%*
2013
   
1.15
 
2012
   
1.25
 
2011
   
.26
 
2010
   
.04
 
2009(f)
   
.05
Year Ended 8/31:
       
2008
   
.09
 

California Dividend Advantage 3 (NZH)
       
Year Ended 2/28-2/29:
       
2014(g)
   
1.51
%*
2013
   
1.47
 
2012
   
1.49
 
2011
   
.94
 
2010
   
.19
 
2009(f)
   
.12
Year Ended 8/31:
       
2008
   
.02
 
 
(f)
For the six months ended February 28, 2009.
(g)
For the six months ended August 31, 2013.
(h)
Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 5 – Investment Transactions) divided by the average long-term market value during the period.
*
Annualized.
**
Rounds to less than $.01 per share.
N/A
Fund no longer has a contractual reimbursement agreement with the Adviser.
 
See accompanying notes to financial statements.
 
Nuveen Investments
 
63

 
 

 
 
Financial Highlights (Unaudited) (continued)
 
Selected data for a common share outstanding throughout each period:

       
Investment Operations
 
Less Distributions
             
   
Beginning
Common
Share
Net Asset
Value
 
Net
Investment
Income
(Loss)
 
Net
Realized/
Unrealized
Gain (Loss)
 
Distributions
from Net
Investment
Income to
Auction Rate
Preferred Shareholders
(a)
Distributions
from
Accumulated
Net Realized
Gains to
Auction Rate
Preferred Shareholders
(a)
Total
 
From
Net
Investment
Income to
Common
Share-
holders
 
From
Accumu-
lated
Net
Realized
Gains to
Common
Share-
holders
 
Total
 
Discount
from
Common
Shares
Repurchased
and
Retired
 
Ending
Common
Share
Net Asset
Value
 
Ending
Market
Value
 
California AMT-Free Income (NKX)
                                                       
Year Ended 2/28-2/29:
                                                             
2014(g)
 
$
15.57
 
$
.42
 
$
(2.34
)
$
 
$
 
$
(1.92
)
$
(.42
)
$
 
$
(.42
)
$
 
$
13.23
 
$
12.04
 
2013
   
14.73
   
.77
   
.97
   
   
   
1.74
   
(.88
)
 
(.02
)
 
(.90
)
 
   
15.57
   
15.12
 
2012
   
12.82
   
.83
   
1.91
   
   
   
2.74
   
(.83
)
 
   
(.83
)
 
   
14.73
   
15.06
 
2011
   
14.03
   
.81
   
(1.22
)
 
   
   
(.41
)
 
(.80
)
 
   
(.80
)
 
   
12.82
   
11.78
 
2010
   
12.85
   
.85
   
1.09
   
   
   
1.94
   
(.76
)
 
   
(.76
)
 
   
14.03
   
12.87
 
2009(f)
   
14.19
   
.39
   
(1.32
)
 
**   
(.01
)
 
(.94
)
 
(.35
)
 
(.05
)
 
(.40
)
 
   
12.85
   
11.75
 
Year Ended 8/31:
                                                                   
2008
   
14.47
   
.97
   
(.30
)
 
(.24
)
 
   
.43
   
(.71
)
 
   
(.71
)
 
   
14.19
   
13.78
 
 
(a)
The amounts shown are based on common share equivalents.
(b)
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.
 
64
 
Nuveen Investments

 
 

 

     
Ratios/Supplemental Data
 
Total Returns
     
Ratios to Average Net Assets
Applicable to Common Shares
Before Reimbursement(c)
 
Ratios to Average Net Assets
Applicable to Common Shares
After Reimbursement(c)(d)
     
                                 
 
Based
on
Common
Share Net
Asset
Value
(b)
Based
on
Market
Value
(b)
Ending
Net
Assets
Applicable
to Common
Shares (000)
 
Expenses
(e)
Net
Investment
Income (Loss)
 
Expenses
(e)
Net
Investment
Income (Loss)
 
Portfolio
Turnover
Rate
(h)
                                                 
                                                 
   
(12.54
)%
 
(17.83
)%
$
553,645
   
1.63
%*
 
5.65
%*
 
N/A
   
N/A
   
13
%
   
12.08
   
6.53
   
651,402
   
1.64
   
5.48
   
N/A
   
N/A
   
20
 
   
21.95
   
36.10
   
86,731
   
1.90
   
6.03
   
N/A
   
N/A
   
7
 
   
(3.18
)
 
(2.71
)
 
75,493
   
2.06
   
5.74
   
1.97
%
 
5.83
%
 
8
 
   
15.49
   
16.39
   
82,579
   
1.68
   
6.11
   
1.47
   
6.32
   
*** 
   
(6.42
)
 
(11.55
)
 
75,661
   
2.57
 
5.89
 
2.27
 
6.19
 
3
 
                                                 
   
2.97
   
.12
   
83,531
   
1.33
   
6.28
   
.94
   
6.67
   
28
 
 
(c)
Net Investment Income (Loss) ratios reflect income earned and expenses incurred on assets attributable to VRDP Shares, where applicable.
(d)
After expense reimbursement from the Adviser, where applicable. As of November 30, 2010, the Adviser is no longer reimbursing California AMT-Free Income (NKX) for any fees or expenses.
(e)
The expense ratios reflect, among other things, all interest expense and other costs related to VRDP Shares and/or the interest expense deemed to have been paid by the Fund on the floating rate certificates issued by the special purpose trusts for the self-deposited inverse floaters held by the Fund, where applicable, both as described in Note 1 – General Information and Significant Accounting Policies, Variable Rate Demand Preferred Shares and Note 3 – Portfolio Securities and Investments in Derivatives, Inverse Floating Rate Securities, respectively, as follows:
 
California AMT-Free Income (NKX)
       
Year Ended 2/28-2/29:
       
2014(g)
   
.63
%*
2013
   
.59
 
2012
   
.67
 
2011
   
.92
 
2010
   
.57
 
2009(f)
   
1.03
Year Ended 8/31:
       
2008
   
.08
 
 
(f)
For the six months ended February 28, 2009.
(g)
For the six months ended August 31, 2013.
(h)
Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 5 – Investment Transactions) divided by the average long-term market value during the period.
*
Annualized.
**
Rounds to less than $.01 per share.
***
Calculates to less than 1%.
N/A
Fund no longer has a contractual reimbursement agreement with the Adviser.
 
See accompanying notes to financial statements.
 
Nuveen Investments
 
65

 
 

 
 
Financial Highlights (Unaudited) (continued)

   
ARPS at the End of Period
 
VRDP Shares at the End of Period
 
MTP Shares at the End of Period (a)
 
   
Aggregate
Amount
Outstanding
(000
)
Asset
Coverage
Per $25,000 Share
 
Aggregate
Amount
Outstanding
(000
)
Asset
Coverage Per
$100,000 Share
 
Aggregate
Amount
Outstanding
(000
)
Asset
Coverage
Per $10 Share
 
California Premium Income (NCU)
                               
Year Ended 2/28-2/29:
                                     
2014(b)
 
$
 
$
 
$
 
$
 
$
35,250
 
$
32.76
 
2013
   
   
   
   
   
35,250
   
35.91
 
2012
   
   
   
   
   
35,250
   
34.90
 
2011
   
   
   
   
   
35,250
   
31.07
 
2010
   
34,375
   
82,150
   
   
   
   
 
2009(c)
   
40,875
   
68,584
   
   
   
   
 
Year Ended 8/31:
                                     
2008
   
43,000
   
70,910
   
   
   
   
 
                                       
California Dividend Advantage (NAC)
                               
Year Ended 2/28-2/29:
                                     
2014(b)
   
   
   
136,200
   
330,363
   
   
 
2013
   
   
   
136,200
   
374,666
   
   
 
2012
   
   
   
136,200
   
356,390
   
   
 
2011
   
135,525
   
79,903
   
   
   
   
 
2010
   
135,525
   
85,098
   
   
   
   
 
2009(c)
   
135,525
   
77,430
   
   
   
   
 
Year Ended 8/31:
                                     
2008
   
135,525
   
87,485
   
   
   
   
 
 
(a)
The Ending and Average Market Value Per Share for each Series of the Fund’s MTP Shares were as follows:
 
     
2014
(b)
 
2013
   
2012
   
2011
(d)
California Premium Income (NCU)
                         
Series 2015 (NCU PRC)
                         
Ending Market Value per Share
 
$
10.02
 
$
10.05
 
$
10.06
 
$
9.63
 
Average Market Value per Share
   
10.02
   
10.05
   
9.84
   
9.74
 
(b)
For the six months ended August 31, 2013.
(c)
For the six months ended February 28, 2009.
(d)
The Fund did not issue MTP Shares prior to the fiscal year ended February 28, 2011.
^
For the period September 22, 2010 (first issuance date of shares) through February 28, 2011.
 
See accompanying notes to financial statements.
 
66
 
Nuveen Investments

 
 

 

   
ARPS at the End of Period
 
VRDP Shares at the End of Period
 
MTP Shares at the End of Period (a)
 
ARPS MTP and/or
VRDP Shares at
the End of Period
 
   
Aggregate
Amount
Outstanding
(000
)
Asset
Coverage
Per $25,000
Share
 
Aggregate
Amount
Outstanding
(000
)
Asset
Coverage
Per $100,000
Share
 
Aggregate
Amount
Outstanding
(000
)
Asset
Coverage
Per $10
Share
 
Asset Coverage
Per $1
Liquidation
Preference
 
California Dividend Advantage 2 (NVX)
                               
Year Ended 2/28-2/29:
                                           
2014(b)
 
$
 
$
 
$
98,000
 
$
202,548
 
$
97,846
 
$
20.25
 
$
2.03
 
2013
   
   
   
   
   
97,846
   
34.65
   
 
2012
   
   
   
   
   
97,846
   
33.35
   
 
2011
   
39,950
   
77,310
   
   
   
55,000
   
30.92
   
3.09
 
2010
   
93,775
   
81,968
   
   
   
   
   
 
2009(c)
   
110,000
   
68,369
   
   
   
   
   
 
Year Ended 8/31:
                                           
2008
   
110,000
   
73,384
   
   
   
   
   
 
                                             
California Dividend Advantage 3 (NZH)
                               
Year Ended 2/28-2/29:
                                           
2014(b)
   
   
   
   
   
159,545
   
28.69
   
 
2013
   
   
   
   
   
159,545
   
32.26
   
 
2012
   
   
   
   
   
159,545
   
31.05
   
 
2011
   
69,500
   
71,960
   
   
   
86,250
   
28.78
   
2.88
 
2010
   
69,500
   
76,021
   
   
   
86,250
   
30.41
   
3.04
 
2009(c)
   
154,075
   
70,117
   
   
   
   
   
 
Year Ended 8/31:
                                           
2008
   
159,925
   
76,377
   
   
   
   
   
 
 
(a)
The Ending and Average Market Value Per Share for each Series of the Fund’s MTP Shares were as follows:
 
     
2014
(b)
 
2013
   
2012
   
2011
   
2010
(d)
California Dividend Advantage 2 (NVX)
                               
Series 2014 (NVX PRA)
                               
Ending Market Value per Share
 
$
9.98
 
$
10.05
 
$
10.11
 
$
 
$
 
Average Market Value per Share
   
10.03
   
10.07
   
10.09
Ω  
   
 
Series 2015 (NVX PRC)
                               
Ending Market Value per Share
   
9.98
   
10.05
   
10.01
   
9.82
   
 
Average Market Value per Share
   
10.02
   
10.04
   
9.89
   
9.72
^^   
 
                                 
California Dividend Advantage 3 (NZH)
                               
Series 2014 (NZH PRA)
                               
Ending Market Value per Share
   
10.02
   
10.05
   
10.17
   
   
 
Average Market Value per Share
   
10.04
   
10.09
   
10.11
ΩΩ  
   
 
Series 2014-1 (NZH PRA)
                               
Ending Market Value per Share
   
10.02
   
10.05
   
10.15
   
   
 
Average Market Value per Share
   
10.03
   
10.08
   
10.12
ΩΩΩ  
   
 
Series 2015 (NZH PRC)
                               
Ending Market Value per Share
   
10.03
   
10.14
   
10.18
   
10.06
   
10.11
 
Average Market Value per Share
   
10.08
   
10.13
   
10.11
   
10.14
   
10.09
 
(b)
For the six months ended August 31, 2013.
(c)
For the six months ended February 28, 2009.
(d)
California Dividend Advantage 2 (NVX) and California Dividend Advantage 3 (NZH) did not issue MTP Shares prior to the fiscal year ended February 28, 2011 and February 28, 2010, respectively.
^
For the period December 21, 2009 (first issuance date of shares) through February 28, 2010.
^^
For the period October 22, 2010 (first issuance date of shares) through February 28, 2011.
Ω
For the period March 29, 2011 (first issuance date of shares) through February 29, 2012.
ΩΩ
For the period April 11, 2011 (first issuance date of shares) through February 29, 2012.
ΩΩΩ
For the period June 6, 2011 (first issuance date of shares) through February 29, 2012.
 
See accompanying notes to financial statements.
 
Nuveen Investments
 
67

 
 

 
 
Financial Highlights (Unaudited) (continued)
 
   
VRDP Shares at the End of Period
 
   
Aggregate
     
   
Amount
 
Asset
 
   
Outstanding
 
Coverage Per
 
   
(000
)
$100,000 Share
 
California AMT-Free Income (NKX)
             
Year Ended 2/28-2/29:
             
2014(b)
 
$
291,600
 
$
289,865
 
2013
   
291,600
   
323,389
 
2012
   
35,500
   
344,312
 
2011
   
35,500
   
312,655
 
2010
   
35,500
   
332,616
 
2009(c)
   
35,500
   
313,131
 
Year Ended 8/31:
             
2008
   
35,500
   
335,299
 
 
See accompanying notes to financial statements.
 
68
 
Nuveen Investments
 
 
 

 
 
Notes to
 
 
Financial Statements (Unaudited)
 
1. General Information and Significant Accounting Policies
 
General Information
The funds covered in this report and their corresponding New York Stock Exchange (“NYSE”) or NYSE MKT symbols are as follows (each a “Fund” and collectively, the “Funds”):
 
•   Nuveen California Premium Income Municipal Fund (NCU) (“California Premium Income (NCU)”)
 
•   Nuveen California Dividend Advantage Municipal Fund (NAC) (“California Dividend Advantage (NAC)”)
 
•   Nuveen California Dividend Advantage Municipal Fund 2 (NVX) (“California Dividend Advantage 2 (NVX)”)
 
•   Nuveen California Dividend Advantage Municipal Fund 3 (NZH) (“California Dividend Advantage 3 (NZH)”)
 
•   Nuveen California AMT-Free Municipal Income Fund (NKX) (“California AMT-Free Income (NKX)”)
 
The Funds are registered under the Investment Company Act of 1940, as amended, as diversified closed-end registered investment companies. California Premium Income (NCU), California Dividend Advantage (NAC), California Dividend Advantage 2 (NVX), California Dividend Advantage 3 (NZH) and California AMT-Free Income (NKX) were organized as Massachusetts business trusts on February 10, 1993, December 1, 1998, June 1, 1999, April 6, 2001 and July 29, 2002 respectively.
 
The Funds’ investment adviser is Nuveen Fund Advisors, LLC (the “Adviser”), a wholly-owned subsidiary of Nuveen Investments, Inc. (“Nuveen”). The Adviser is responsible for each Fund’s overall investment strategy and asset allocation decisions. The Adviser has entered into sub-advisory agreements with the Nuveen Asset Management, LLC, (the “Sub-Adviser”), a subsidiary of the Adviser, under which the Sub-Adviser manages the investment portfolios of the Funds.
 
Each Fund seeks to provide current income exempt from both regular federal and California state income taxes, and in the case of California AMT-Free Income (NKX) the alternative minimum tax applicable to individuals, by investing primarily in a portfolio of municipal obligations issued by state and local government authorities within the state of California or certain U.S. territories.
 
Significant Accounting Policies
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 (“U.S. GAAP”).
 
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and losses from investment transactions are determined on the specific identification method, which is the same basis used for federal income tax purposes. 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 earmark securities in the Funds’ portfolios with a current value at least equal to the amount of the when-issued/delayed delivery purchase commitments. As of August 31, 2013, there were no such outstanding purchase commitments in any of the Funds.
 
Investment Income
Investment income, which reflects the amortization of premiums and includes accretion of discounts for financial reporting purposes, is recorded on an accrual basis. Investment income also reflects paydown gains and losses, if any.
 
Professional Fees
Professional fees presented on the Statement of Operations consist of legal fees incurred in the normal course of operations, audit fees, tax consulting fees and, in some cases, workout expenditures. Workout expenditures are incurred in an attempt to protect or enhance an investment, or to pursue other claims or legal actions on behalf of Fund shareholders. Should a Fund receive a refund of workout expenditures paid in a prior reporting period, such amounts will be recognized as “Legal fee refund” on the Statement of Operations.
 
Nuveen Investments
 
69

 
 

 
 
Notes to Financial Statements (Unaudited) (continued)
 
Dividends and Distributions to Common Shareholders
Dividends from 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 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. GAAP.
 
Auction Rate Preferred Shares
Each Fund is authorized to issue Auction Rate Preferred Shares (“ARPS”). During prior fiscal periods, the Funds redeemed all of their outstanding ARPS, at liquidation value.
 
MuniFund Term Preferred Shares
The following Funds have issued and outstanding MuniFund Term Preferred (“MTP”) Shares, with a $10 stated (“par”) value per share. Each Fund’s MTP Shares are issued in one or more Series and trade on NYSE/NYSE MKT. Dividends on MTP Shares, which are recognized as interest expense for financial reporting purposes, are paid monthly at a fixed annual rate, subject to adjustments in certain circumstances.
 
On September 9, 2013 (subsequent to the close of this reporting period), California Dividend Advantage 2 (NVX) redeemed all series of the Fund’s MTP Shares, at their $10.00 liquidation value per share plus an additional amount representing any dividend amounts owed. The Fund used the proceeds from its August 29, 2013 issuance of 980 Variable Rate Demand Preferred Shares to qualified institutional buyers in a private offering pursuant to Rule 144A of the Securities Act of 1933 to redeem the MTP Shares.
 
As of August 31, 2013, the details of each Fund’s MTP Shares outstanding were as follows:
 
               
Shares
     
       
NYSE/
     
Outstanding
 
Annual
 
       
NYSE MKT
 
Shares
 
at $10 Per Share
 
Interest
 
   
Series
 
Ticker
 
Outstanding
 
Liquidation Value
 
Rate
 
California Premium Income (NCU)
                               
     
2015
   
NCU PRC
   
3,525,000
 
$
35,250,000
   
2.00
%
                                 
California Dividend Advantage 2 (NVX)
                               
     
2014
 
NVX PRA
   
4,284,630
 
$
42,846,300
   
2.35
%
     
2015
 
NVX PRC
   
5,500,000
   
55,000,000
   
2.05
 
                                 
California Dividend Advantage 3 (NZH)
                               
     
2014
   
NZH PRA
   
2,700,000
 
$
27,000,000
   
2.35
%
     
2014-1
   
NZH PRB
   
4,629,450
   
46,294,500
   
2.25
 
     
2015
   
NZH PRC
   
8,625,000
   
86,250,000
   
2.95
 
 
*        MTP Shares noticed for redemption.
 
Each Fund is obligated to redeem its MTP Shares by the date as specified in its offering document (“Term Redemption Date”), unless earlier redeemed or repurchased by the Fund. MTP Shares are subject to optional and mandatory redemption in certain circumstances. MTP Shares were subject to redemption at the option of each Fund (“Optional Redemption Date”), subject to a payment of premium for one year following the Optional Redemption Date (“Premium Expiration Date”), and at par thereafter. MTP Shares also will be subject to redemption, at the option of each Fund, at par in the event of certain changes in the credit rating of the MTP Shares. Each Fund may be obligated to redeem certain of the MTP Shares if the Fund fails to maintain certain asset coverage and leverage ratio requirements and such failures are not cured by the applicable cure date. The redemption price per share is equal to the sum of the liquidation value per share plus any accumulated but unpaid dividends. The Term Redemption Date, Optional Redemption Date and Premium Expiration Date for each Fund’s series of MTP Shares by NYSE/NYSE MKT ticker symbol are as follows:
 
     
 
   
NYSE/
   
Term
   
Optional
   
Premium
 
     
 
   
NYSE MKT
   
Redemption
   
Redemption
   
Expiration
 
     
Series
   
Ticker
   
Date
   
Date
   
Date
 
California Premium Income (NCU)
                               
     
2015
   
NCU PRC
   
October 1, 2015
   
October 1, 2011
   
September 30, 2012
 
                                 
California Dividend Advantage 2 (NVX)
                               
     
2014
 
NVX PRA
   
April 1, 2014
   
April 1, 2012
   
March 31, 2013
 
     
2015
 
NVX PRC
   
November 1, 2015
   
November 1, 2011
   
October 31, 2012
 
 
*       MTP Shares noticed for redemption.
 
70
 
Nuveen Investments

 
 

 
 
       
NYSE/
 
Term
 
Optional
 
Premium
 
       
NYSE MKT
 
Redemption
 
Redemption
 
Expiration
 
   
Series
 
Ticker
 
Date
 
Date
 
Date
 
California Dividend Advantage 3 (NZH)
                               
     
2014
   
NZH PRA
   
May 1, 2014
   
May 1, 2012
   
April 30, 2013
 
     
2014-1
   
NZH PRB
   
July 1, 2014
   
July 1, 2012
   
June 30, 2013
 
     
2015
   
NZH PRC
   
January 1, 2015
   
January 1, 2011
   
December 31, 2011
 
 
The average liquidation value for all series of MTP Shares outstanding for each Fund during the six months ended August 31, 2013, was as follows:
 
     
California
   
California
   
California
 
     
Premium
   
Dividend
   
Dividend
 
     
Income
   
Advantage 2
   
Advantage 3
 
     
(NCU
)
 
(NVX
)
 
(NZH
)
Average liquidation value of MTP Shares outstanding
 
$
35,250,000
 
$
97,846,300
 
$
159,544,500
 
 
For financial reporting purposes only, the liquidation value of MTP Shares is recorded as a liability and recognized as “MuniFund Term Preferred (MTP) Shares, at liquidation value” on the Statement of Assets and Liabilities. Unpaid dividends on MTP Shares are recognized as a component of “Interest payable” on the Statement of Assets and Liabilities. Dividends paid on MTP Shares are recognized as a component of “Interest expense and amortization of offering costs” on the Statement of Operations. Costs incurred by the Funds in connection with their offerings of MTP Shares were recorded as a deferred charge, which are amortized over the life of the shares and are recognized as components of “Deferred offering costs” on the Statement of Assets and Liabilities and “Interest expense and amortization of offering costs” on the Statement of Operations. In conjunction with California Dividend Advantage 2’s (NVX) redemption of MTP Shares, the remaining deferred offering costs of $569,616 were fully expensed during the current fiscal period, as the redemption was deemed an extinguishment of debt.
 
Variable Rate Demand Preferred Shares
The following Funds have issued and outstanding Variable Rate Demand Preferred (“VRDP”) Shares, with a $100,000 liquidation value per share. California Dividend Advantage (NAC), California Dividend Advantage 2 (NVX) and California AMT-Free Income (NKX) issued their VRDP Shares in privately negotiated offerings. The VRDP Shares were offered to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933.
 
During the current period, California Dividend Advantage 2 (NVX) issued 980 Series 1 VRDP Shares through a private negotiated offering, which were offered to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933.
 
As of August 31, 2013, the number of VRDP Shares outstanding and maturity date for each Fund are as follows:
 
           
Shares Outstanding at
     
       
Shares
 
$100,000 Per Share
     
   
Series
 
Outstanding
 
Liquidation Value
 
Maturity
 
California Dividend Advantage (NAC)
                         
     
1
   
1,362
 
$
136,200,000
   
June 1, 2041
 
California Dividend Advantage 2 (NVX)
                         
     
1
   
980
 
$
98,000,000
   
August 3, 2043
 
California AMT-Free Income (NKX)
                         
     
2
   
355
 
$
35,500,000
   
June 1, 2040
 
     
3
   
427
   
42,700,000
   
March 1, 2040
 
     
4
   
1,090
   
109,000,000
   
December 1, 2040
 
     
5
   
1,044
   
104,400,000
   
June 1, 2041
 
 
VRDP Shares include a liquidity feature that allows VRDP shareholders to have their shares purchased by a liquidity provider with whom each Fund has contracted in the event that purchase orders for VRDP Shares in a remarketing are not sufficient in number to be matched with the sale orders in that remarketing. Each Fund is required to redeem any VRDP Shares that are still owned by the liquidity provider after six months of continuous, unsuccessful remarketing. Each Fund pays an annual remarketing fee of .10% on the aggregate principal amount of all VRDP Shares outstanding. Each Fund’s VRDP Shares have successfully remarketed since issuance.
 
Dividends on the VRDP Shares (which are treated as interest payments for financial reporting purposes) are set weekly at a rate established by a remarketing agent; therefore, the market value of the VRDP Shares is expected to approximate its liquidation value. If remarketings for VRDP Shares are continuously unsuccessful for six months, the maximum rate is designed to escalate according to a specified schedule in order to enhance the remarketing agent’s ability to successfully remarket the VRDP Shares.
 
Nuveen Investments
 
71

 
 

 

Notes to Financial Statements (Unaudited) (continued)
 
Subject to certain conditions, VRDP Shares may be redeemed, in whole or in part, at any time at the option of each Fund. Each Fund may also redeem certain of the VRDP Shares if the Fund fails to maintain certain asset coverage requirements and such failures are not cured by the applicable cure date. The redemption price per share is equal to the sum of the liquidation value per share plus any accumulated but unpaid dividends.
 
The average liquidation value of VRDP Shares outstanding and annualized dividend rate for each Fund during the six months ended August 31, 2013, were as follows:
 
     
California
   
California
   
California
 
     
Dividend
   
Dividend
   
AMT-Free
 
     
Advantage
   
Advantage 2
   
Income
 
     
(NAC
)
 
(NVX
)
 
(NKX
)
Average liquidation value of VRDP Shares outstanding
 
$
136,200,000
 
$
98,000,000
 
$
291,600,000
 
Annualized dividend rate
   
0.29%
 
 
0.16%
 
 
0.23%
 
 
For financial reporting purposes only, the liquidation value of VRDP Shares is recognized as a liability and recognized as “Variable Rate Demand Preferred (VRDP) Shares, at liquidation value” on the Statement of Assets and Liabilities. Unpaid dividends on VRDP Shares are recognized as a component of “Interest payable” on the Statement of Assets and Liabilities, when applicable. Dividends paid on the VRDP Shares are recognized as a component of “Interest expense and amortization of offering costs” on the Statement of Operations. Costs incurred by the Funds in connection with their offerings of VRDP Shares were recorded as a deferred charge, which are amortized over the life of the shares and are recognized as a component of “Deferred offering costs” on the Statement of Assets and Liabilities and “Interest expense and amortization of offerings costs” on the Statement of Operations. California Dividend Advantage 2 (NVX) incurred an additional $255,000 of offering costs in conjunction with its shares issued during the six months ended August 31, 2013. In addition to interest expense, each Fund also pays a per annum liquidity fee to the liquidity provider, as well as a remarketing fee, which are recognized as “Liquidity fees” and “Remarketing fees”, respectively, on the Statement of Operations.
 
Common Shares Equity Shelf Programs and Offering Costs
During the prior reporting period, California Dividend Advantage (NAC) and California AMT-Free Income (NKX) each filed initial registration statements with the Securities and Exchange Commission (“SEC”) authorizing the Funds to issue an additional 2.3 million and 4.1 million common shares, respectively, through equity shelf programs (“Shelf Offerings”). During the current reporting period, the Shelf Offerings for California Dividend Advantage (NAC) and California AMT-Free Income (NKX) were declared effective but the Funds did not sell any common shares.
 
Under these Shelf Offerings, the Funds, subject to market conditions, may raise additional equity capital from time to time in varying amounts and offering methods at a net price at or above each Fund’s net asset value (“NAV”) per common share.
 
Costs incurred by the Funds in connection with their initial Shelf Offerings are recorded as a deferred charge, which will be amortized over the period such additional common shares are sold not to exceed the one-year life of the Shelf Offering period and are recognized as a component of “Deferred offering costs” on the Statement of Assets and Liabilities. Ongoing Shelf Offering costs, and any additional costs the Funds may incur in connection with the Shelf Offerings, are expensed as incurred and recorded as a component of “Proceeds from shelf offering, net of offering costs” on the Statement of Changes in Net Assets.
 
Indemnifications
Under the Funds’ organizational documents, their officers and trustees 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.
 
Netting Agreements
In the ordinary course of business, the Funds have entered into transactions subject to enforceable master repurchase agreements, International Swaps and Derivative Association, Inc. (“ISDA”) master agreements or other similar arrangements (“netting agreements”). Generally, the right to offset in netting agreements allows each Fund to offset any exposure to a specific counterparty with any collateral received or delivered to that counterparty based on the terms of the agreements. Generally, a Fund manages its cash collateral and securities collateral on a counterparty basis. As of August 31, 2013, the Funds were not invested in any portfolio securities or derivatives that are subject to netting agreements.
 
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets applicable to common shares from operations during the reporting period. Actual results may differ from those estimates.
 
72
 
Nuveen Investments

 
 

 
 
2. Investment Valuation and Fair Value Measurements
 
Investment Valuation
Prices of municipal bonds are provided by a pricing service approved by the Funds’ Board of Trustees. These securities are generally classified as Level 2 for fair value measurement purposes. The pricing service establishes a security’s fair value using methods that may include consideration of the following: yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor’s credit characteristics considered relevant. In pricing certain securities, particularly less liquid and lower quality securities, the pricing service may consider information about a security, its issuer, or market activity, provided by the Adviser. These securities are generally classified as Level 2 or Level 3 depending on the priority of the significant inputs.
 
Certain securities may not be able to be priced by the pre-established pricing methods as described above. Such securities may be valued by the Funds’ Board of Trustees or its designee at fair value. These securities generally include, but are not limited to, restricted securities (securities which may not be publicly sold without registration under the Securities Act of 1933, as amended) for which a pricing service is unable to provide a market price; securities whose trading has been formally suspended; debt securities that have gone into default and for which there is no current market quotation; a security whose market price is not available from a pre-established pricing source; a security with respect to which an event has occurred that is likely to materially affect the value of the security after the market has closed but before the calculation of a Fund’s net asset value (as may be the case in non-U.S. markets on which the security is primarily traded) or make it difficult or impossible to obtain a reliable market quotation; and a security whose price, as provided by the pricing service, is not deemed to reflect the security’s fair value. As a general principle, the fair value of a security would appear to be the amount that the owner might reasonably expect to receive for it in a current sale. A variety of factors may be considered in determining the fair value of those securities, which may include consideration of the following: yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor’s credit characteristics considered relevant. These securities are generally classified as Level 2 or Level 3 depending on the priority of the significant inputs. Regardless of the method employed to value a particular security, all valuations are subject to review by the Funds’ Board of Trustees or its designee.
 
Fair Value Measurements
Fair value is defined as the price that the Funds would receive upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. A three-tier hierarchy is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The following is a summary of the three-tiered hierarchy of valuation input levels.
 
Level 1 –  
Inputs are unadjusted and prices are determined using quoted prices in active markets for identical securities.
   
Level 2 –  
Prices are determined using other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
   
Level 3 –  
Prices are determined using significant unobservable inputs (including management’s assumptions in determining the fair value of investments).
 
The inputs or methodologies used for valuing securities are not an indication of the risks associated with investing in those securities. The following is a summary of each Fund’s fair value measurements as of the end of the reporting period:
 
California Premium Income (NCU)
   
Level 1
   
Level 2
   
Level 3
   
Total
 
Long-Term Investments*:
                         
Municipal Bonds
 
$
 
$
118,361,945
 
$
 
$
118,361,945
 
                           
California Dividend Advantage (NAC)
   
Level 1
   
Level 2
   
Level 3
   
Total
 
Long-Term Investments*:
                         
Municipal Bonds
 
$
 
$
476,630,488
 
$
 
$
476,630,488
 
                           
California Dividend Advantage 2 (NVX)
   
Level 1
   
Level 2
   
Level 3
   
Total
 
Long-Term Investments*:
                         
Municipal Bonds
 
$
 
$
293,552,149
 
$
 
$
293,552,149
 
                           
California Dividend Advantage 3 (NZH)
   
Level 1
   
Level 2
   
Level 3
   
Total
 
Long-Term Investments*:
                         
Municipal Bonds
 
$
 
$
426,418,148
 
$
 
$
426,418,148
 
                           
California AMT-Free Income (NKX)
   
Level 1
   
Level 2
   
Level 3
   
Total
 
Long-Term Investments*:
                         
Municipal Bonds
 
$
 
$
824,684,670
 
$
 
$
824,684,670
 

*
Refer to the Fund’s Portfolio of Investments for industry classifications.

Nuveen Investments
 
73

 
 

 
 
Notes to Financial Statements (Unaudited) (continued)
 
The Nuveen funds’ Board of Directors/Trustees is responsible for the valuation process and has delegated the oversight of the daily valuation process to the Adviser’s Valuation Committee. The Valuation Committee, pursuant to the valuation policies and procedures adopted by the Board of Directors/Trustees, is responsible for making fair value determinations, evaluating the effectiveness of the funds’ pricing policies and reporting to the Board of Directors/Trustees. The Valuation Committee is aided in its efforts by the Adviser’s dedicated Securities Valuation Team, which is responsible for administering the daily valuation process and applying fair value methodologies as approved by the Valuation Committee. When determining the reliability of independent pricing services for investments owned by the funds, the Valuation Committee, among other things, conducts due diligence reviews of the pricing services and monitors the quality of security prices received through various testing reports conducted by the Securities Valuation Team.
 
The Valuation Committee will consider pricing methodologies it deems relevant and appropriate when making a fair value determination, based on the facts and circumstances specific to the portfolio instrument. Fair value determinations generally will be derived as follows, using public or private market information:
 
 (i)
 
If available, fair value determinations shall be derived by extrapolating from recent transactions or quoted prices for identical or comparable securities.
     
(ii)
 
If such information is not available, an analytical valuation methodology may be used based on other available information including, but not limited to: analyst appraisals, research reports, corporate action information, issuer financial statements and shelf registration statements. Such analytical valuation methodologies may include, but are not limited to: multiple of earnings, discount from market value of a similar freely-traded security, discounted cash flow analysis, book value or a multiple thereof, risk premium/yield analysis, yield to maturity and/or fundamental investment analysis.
 
The purchase price of a portfolio instrument will be used to fair value the instrument only if no other valuation methodology is available or deemed appropriate, and it is determined that the purchase price fairly reflects the instrument’s current value.
 
For each portfolio security that has been fair valued pursuant to the policies adopted by the Board of Directors/Trustees, the fair value price is compared against the last available and next available market quotations. The Valuation Committee reviews the results of such testing and fair valuation occurrences are reported to the Board of Directors/Trustees.
 
3. Portfolio Securities and Investments in Derivatives
 
Portfolio Securities
 
Inverse Floating Rate Securities
Each Fund is authorized to invest in inverse floating rate securities. An inverse floating rate security is created by depositing a municipal bond, typically with a fixed interest rate, into a special purpose trust created by a broker-dealer. In turn, this trust (a) issues floating rate certificates, in face amounts equal to some fraction of the deposited bond’s par amount or market value, that typically pay short-term tax-exempt interest rates to third parties, and (b) issues to a long-term investor (such as one of the Funds) an inverse floating rate certificate (sometimes referred to as an “inverse floater”) that represents all remaining or residual interest in the trust. The income received by the inverse floater holder varies inversely with the short-term rate paid to the floating rate certificates’ holders, and in most circumstances the inverse floater holder bears substantially all of the underlying bond’s downside investment risk and also benefits disproportionately from any potential appreciation of the underlying bond’s value. The price of an inverse floating rate security will be more volatile than that of the underlying bond because the interest rate is dependent on not only the fixed coupon rate of the underlying bond but also on the short-term interest paid on the floating rate certificates, and because the inverse floating rate security essentially bears the risk of loss of the greater face value of the underlying bond.
 
A Fund may purchase an inverse floating rate security in a secondary market transaction without first owning the underlying bond (referred to as an “externally-deposited inverse floater”), or instead by first selling a fixed-rate bond to a broker-dealer for deposit into the special purpose trust and receiving in turn the residual interest in the trust (referred to as a “self-deposited inverse floater”). The inverse floater held by a Fund gives the Fund the right (a) to cause the holders of the floating rate certificates to tender their notes at par, and (b) to have the broker transfer the fixed-rate bond held by the trust to the Fund, thereby collapsing the trust. An investment in an externally-deposited inverse floater is identified in the Portfolio of Investments as “(IF) – Inverse floating rate investment.” An investment in a self-deposited inverse floater is accounted for as a financing transaction. In such instances, a fixed-rate bond deposited into a special purpose trust is identified in the Portfolio of Investments as “(UB) – Underlying bond of an inverse floating rate trust reflected as a financing transaction,” with the Fund accounting for the short-term floating rate certificates issued by the trust, at their liquidation value, 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 as a component of “Interest expense and amortization of offering costs” on the Statement of Operations.
 
During the six months ended August 31, 2013, each Fund invested in externally-deposited inverse floaters and/or self-deposited inverse floaters.
 
74
 
Nuveen Investments

 
 

 
 
Each Fund may also enter into shortfall and forbearance agreements (sometimes referred to as a “recourse trust” or “credit recovery swap”) (such agreements referred to herein as “Recourse Trusts”) with a broker-dealer by which a Fund agrees to reimburse the broker-dealer, in certain circumstances, for the difference between the liquidation value of the fixed-rate bond held by the trust and the liquidation value of the floating rate certificates issued by the trust plus any shortfalls in interest cash flows. Under these agreements, a Fund’s potential exposure to losses related to or on inverse floaters may increase beyond the value of a Fund’s inverse floater investments as a Fund may potentially be liable to fulfill all amounts owed to holders of the floating rate certificates. At period end, any such shortfall is recognized as “Unrealized depreciation on Recourse Trusts” on the Statement of Assets and Liabilities.
 
As of August 31, 2013, each Fund’s maximum exposure to the floating rate obligations issued by externally-deposited Recourse Trusts, was as follows:
 
                                 
     
California
   
California
   
California
   
California
   
California
 
     
Premium
   
Dividend
   
Dividend
   
Dividend
   
AMT-Free
 
     
Income
   
Advantage
   
Advantage 2
   
Advantage 3
   
Income
 
     
(NCU
)
 
(NAC
)
 
(NVX
)
 
(NZH
)
 
(NKX
)
Maximum exposure to Recourse Trusts
 
$
6,510,000
 
$
24,590,000
 
$
16,960,000
 
$
48,960,000
 
$
31,250,000
 
 
The average floating rate obligations outstanding and average annual interest rate and fees related to self-deposited inverse floaters during the six months ended August 31, 2013, were as follows:
 
                                 
     
California
   
California
   
California
   
California
   
California
 
     
Premium
   
Dividend
   
Dividend
   
Dividend
   
AMT-Free
 
     
Income
   
Advantage
   
Advantage 2
   
Advantage 3
   
Income
 
     
(NCU
)
 
(NAC
)
 
(NVX
)
 
(NZH
)
 
(NKX
)
Average floating rate obligations outstanding
 
$
5,525,000
 
$
43,841,223
 
$
9,783,533
 
$
845,000
 
$
27,588,043
 
Average annual interest rate and fees
   
0.51%
 
 
0.59%
 
 
0.60%
 
 
0.68%
 
 
0.60%
 
 
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. 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. The market prices of zero coupon securities generally are more volatile than the market prices of securities that pay interest periodically.
 
Investments in Derivatives
Each Fund is authorized to invest in certain derivative instruments such as futures, options and swap contracts. Each Fund will limit its investments in futures, options on futures and swap contracts to the extent necessary for the Adviser to claim the exclusion from registration by the Commodity Futures Trading Commission as a commodity pool operator with respect to the Fund. The Funds record derivative instruments at fair value, with changes in fair value recognized on the Statement of Operations, when applicable. Even though the Funds’ investments in derivatives may represent economic hedges, they are not considered to be hedge transactions for financial reporting purposes. Although the Funds are authorized to invest in derivative instruments and may do so in future, they did not make any such investments during the six months ended August 31, 2013.
 
Market and Counterparty Credit Risk
In the normal course of business each Fund may invest in financial instruments and enter into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the other party to the transaction to perform (counterparty credit risk). The potential loss could exceed the value of the financial assets recorded on the financial statements. Financial assets, which potentially expose each Fund to counterparty credit risk, consist principally of cash due from counterparties on forward, option and swap transactions, when applicable. The extent of each Fund’s exposure to counterparty credit risk in respect to these financial assets approximates their carrying value as recorded on the Statement of Assets and Liabilities.
 
Each Fund helps manage counterparty credit risk by entering into agreements only with counterparties the Adviser believes have the financial resources to honor their obligations and by having the Adviser monitor the financial stability of the counterparties. Additionally, counterparties may be required to pledge collateral daily (based on the daily valuation of the financial asset) on behalf of each Fund with a value approximately equal to the amount of any unrealized gain above a pre-determined threshold. Reciprocally, when each Fund has an unrealized loss, the Funds have instructed the custodian to pledge assets of the Funds as collateral with a value approximately equal to the amount of the unrealized loss above a pre-determined threshold. Collateral pledges are monitored and subsequently adjusted if and when the valuations fluctuate, either up or down, by at least the pre-determined threshold amount.
 
4. Fund Shares
 
Common Shares
The Funds have not repurchased any of their outstanding common shares during the six months ended August 31, 2013 and fiscal year ended February 28, 2013.
 
Nuveen Investments
 
75

 
 

 
 
Notes to Financial Statements (Unaudited) (continued)
 
Transactions in common shares were as follows:
 
   
California Premium
 
California Dividend
 
   
Income (NCU)
 
Advantage (NAC)
 
     
Six Months
   
Year
   
Six Months
   
Year
 
     
Ended
   
Ended
   
Ended
   
Ended
 
     
8/31/13
   
2/28/13
   
8/31/13
   
2/28/13
 
Common shares:
                         
Issued to shareholders due to reinvestment of distributions
   
   
2,157
   
7,517
   
38,134
 

    California Dividend   California Dividend  
    Advantage 2 (NVX)
 
Advantage 3 (NZH)  
     
Six Months
   
Year
   
Six Months
   
Year
 
     
Ended
   
Ended
   
Ended
   
Ended
 
     
8/31/13
   
2/28/13
   
8/31/13
   
2/28/13
 
Common shares:
                         
Issued to shareholders due to reinvestment of distributions
   
1,236
   
11,279
   
   
12,652
 

   
California AMT-Free
 
   
Income (NKX)
 
     
Six Months
   
Year
 
     
Ended
   
Ended
 
     
8/31/13
   
2/28/13
 
Common shares:
             
Issued in reorganizations
   
   
35,902,926
 
Issued to shareholders due to reinvestment of distributions
   
   
51,960
 
 
Preferred Shares
California Premium Income (NCU) and California Dividend Advantage 3 (NZH) did not have any transactions in MTP Shares during the six months ended August 31, 2013. California Premium Income (NCU), California Dividend Advantage 2 (NVX) and California Dividend Advantage 3 (NZH) did not have any transactions in MTP Shares during the fiscal year ended February 28, 2013.
 
Transactions in MTP Shares for the Funds, where applicable, were as follows:
 
   
Six Months Ended
 
   
August 31, 2013
 
           
NYSE/
             
           
NYSE MKT
             
     
Series
   
Ticker
   
Shares
   
Amount
 
California Dividend Advantage 2 (NVX)
                         
MTP Shares noticed for redemption
   
2014
   
NVX PRA
   
(4,284,630
)
$
(42,846,300
)
     
2015
   
NVX PRC
   
(5,500,000
)
 
(55,000,000
)
Total
               
(9,784,630
)
$
(97,846,300
)
 
California Dividend Advantage (NAC) and California AMT-Free Income (NKX) did not have any transactions in VRDP Shares during the six months ended August 31, 2013. California Dividend Advantage (NAC) and California Dividend Advantage 2 (NVX) did not have any transactions in VRDP Shares during the fiscal year ended February 28, 2013.
 
76
 
Nuveen Investments

 
 

 
 
Transactions in VRDP Shares for the Funds, where applicable, were as follows:
 
   
Six Months Ended
 
   
August 31, 2013
 
     
Series
   
Shares
   
Amount
 
California Dividend Advantage 2 (NVX)
                   
VRDP Shares issued
   
1
   
980
 
$
98,000,000
 

   
Year Ended
 
   
February 28, 2013
 
     
Series
   
Shares
   
Amount
 
California AMT-Free Income (NKX)
                   
VRDP Shares issued
   
3
 
427
 
$
42,700,000
 
     
4
 
740
   
74,000,000
 
     
4
   
530
   
53,000,000
 
     
5
 
1,044
   
104,400,000
 
Total
         
2,741
 
$
274,100,000
 
 
*        VRDP Shares issued in connection with the Reorganizations.
 
5. Investment Transactions
Purchases and sales (including maturities but excluding short-term investments, where applicable) during the six months ended August 31, 2013, were as follows:
 
     
California
   
California
   
California
   
California
   
California
 
     
Premium
   
Dividend
   
Dividend
   
Dividend
   
AMT-Free
 
     
Income
   
Advantage
   
Advantage 2
   
Advantage 3
   
Income
 
     
(NCU
)
 
(NAC
)
 
(NVX
)
 
(NZH
)
 
(NKX
)
Purchases
 
$
12,422,302
 
$
84,791,111
 
$
66,372,399
 
$
93,539,520
 
$
123,403,076
 
Sales and maturities
   
13,552,926
   
79,010,868
   
81,548,035
   
128,937,573
   
162,659,427
 
 
6. Income Tax Information
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 that will enable interest from municipal securities, which is exempt from regular federal and California state income taxes, and in the case of California AMT-Free Income (NKX) the alternative minimum tax applicable to individuals, to retain such tax-exempt status when distributed to shareholders of the Funds. Net realized capital gains and ordinary income distributions paid by the Funds are subject to federal taxation.
 
For all open tax years and all major taxing jurisdictions, management of the Funds has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. Open tax years are those that are open for examination by taxing authorities (i.e., generally the last four tax year ends and the interim tax period since then). Furthermore, management of the Funds is also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
 
The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to timing differences in recognizing taxable market discount, timing differences in recognizing certain gains and losses on investment transactions and the treatment of investments in inverse floating rate securities reflected as financing transactions, if any. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts as detailed below. Temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset values of the Funds.
 
As of August 31, 2013, the cost and unrealized appreciation (depreciation) of investments, as determined on a federal income tax basis, were as follows:
 
     
California
   
California
   
California
   
California
   
California
 
     
Premium
   
Dividend
   
Dividend
   
Dividend
   
AMT-Free
 
     
Income
   
Advantage
   
Advantage 2
   
Advantage 3
   
Income
 
     
(NCU
)
 
(NAC
)
 
(NVX
)
 
(NZH
)
 
(NKX
)
Cost of investments
 
$
109,998,503
 
$
436,002,009
 
$
289,917,318
 
$
434,778,575
 
$
828,666,601
 
Gross unrealized:
                               
Appreciation
 
$
5,334,280
 
$
18,681,482
 
$
9,508,052
 
$
12,611,166
 
$
20,073,828
 
Depreciation
   
(2,499,667
)
 
(21,452,613
)
 
(15,250,471
)
 
(21,816,593
)
 
(32,293,368
)
Net unrealized appreciation (depreciation) of investments
 
$
2,834,613
 
$
(2,771,131
)
$
(5,742,419
)
$
(9,205,427
)
$
(12,219,540
)

Nuveen Investments
 
77

 
 

 

Notes to Financial Statements (Unaudited) (continued)
 
Permanent differences, primarily due to federal taxes paid, taxable market discount, nondeductible offering costs, reorganization adjustments and nondeductible reorganization expenses, resulted in reclassifications among the Funds’ components of common share net assets as of February 28, 2013, the Funds’ last tax year end, as follows:
 
     
California
   
California
   
California
   
California
   
California
 
     
Premium
   
Dividend
   
Dividend
   
Dividend
   
AMT-Free
 
     
Income
   
Advantage
   
Advantage 2
   
Advantage 3
   
Income
 
     
(NCU
)
 
(NAC
)
 
(NVX
)
 
(NZH
)
 
(NKX
)
Paid-in-surplus
 
$
(172,712
)
$
19,035
 
$
(482,443
)
$
(827,148
)
$
(962,599
)
Undistributed (Over-distribution of) net investment income
   
172,294
   
(164,687
)
 
465,012
   
819,225
   
970,074
 
Accumulated net realized gain (loss)
   
418
   
145,652
   
17,431
   
7,923
   
(7,475
)
 
The tax components of undistributed net tax-exempt income, net ordinary income and net long-term capital gains as of February 28, 2013, the Funds’ last tax year end, were as follows:
 
     
California
   
California
   
California
   
California
   
California
 
     
Premium
   
Dividend
   
Dividend
   
Dividend
   
AMT-Free
 
     
Income
   
Advantage
   
Advantage 2
   
Advantage 3
   
Income
 
     
(NCU
)
 
(NAC
)
 
(NVX
)
 
(NZH
)
 
(NKX
)
Undistributed net tax-exempt income1
 
$
1,490,902
 
$
6,150,666
 
$
3,497,312
 
$
2,620,061
 
$
6,311,700
 
Undistributed net ordinary income2
   
2,839
   
208
   
38,199
   
2,246
   
17,111
 
Undistributed net long-term capital gains
   
   
   
   
   
554,018
 
 
1
Undistributed net tax-exempt income (on a tax basis) has not been reduced for the dividend declared on February 1, 2013, paid on March 1, 2013.
2
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’ last tax year ended February 28, 2013, was designated for purposes of the dividends paid deduction as follows:
 
     
California
   
California
   
California
   
California
   
California
 
     
Premium
   
Dividend
   
Dividend
   
Dividend
   
AMT-Free
 
     
Income
   
Advantage
   
Advantage 2
   
Advantage 3
   
Income
 
     
(NCU
)
 
(NAC
)
 
(NVX
)
 
(NZH
)
 
(NKX
)
Distributions from net tax-exempt income
 
$
5,662,424
 
$
22,042,288
 
$
16,146,699
 
$
24,912,763
 
$
24,898,294
 
Distributions from net ordinary income2
   
   
   
   
   
 
Distributions from net long-term capital gains
   
   
   
   
   
669,297
 
 
2
Net ordinary income consists of taxable market discount income and net short-term capital gains, if any.
 
As of February 28, 2013, the Funds’ last tax year end, the Funds had unused capital loss carryforwards available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryforwards will expire as shown in the following table. The losses not subject to expiration retain the character reflected and will be utilized first by a Fund, while the losses subject to expiration are considered short-term.
 
     
California
   
California
   
California
   
California
   
California
 
     
Premium
   
Dividend
   
Dividend
   
Dividend
   
AMT-Free
 
     
Income
   
Advantage
   
Advantage 2
   
Advantage 3
   
Income
 
     
(NCU
)
 
(NAC
)
 
(NVX
)
 
(NZH
)
 
(NKX
)5
Expiration:
                               
February 29, 2016
 
$
 
$
 
$
 
$
3,869,938
 
$
 
February 28, 2017
   
   
10,106,897
   
   
4,536,999
   
185,948
 
February 28, 2018
   
850,963
   
731,149
   
705,843
   
10,646,251
   
530,894
 
February 28, 2019
   
   
   
   
1,340,157
   
 
Not subject to expiration:
                               
Short-term losses
   
   
   
   
   
 
Long-term losses
   
   
10,769,460
   
499,216
   
5,616,809
   
 
Total
 
$
850,963
 
$
21,607,506
 
$
1,205,059
 
$
26,010,154
 
$
716,842
 
 
5
A portion of California AMT-Free Income’s (NKX) capital loss carryforward is subject to limitation under the Internal Revenue Code and related regulations.
 
During the Funds’ last tax year ended February 28, 2013, the following Funds utilized capital loss carryforwards as follows:
 
     
California
   
California
 
     
Premium
   
AMT-Free
 
     
Income
   
Income
 
     
(NCU
)
 
(NKX
)
Utilized capital loss carryforwards
 
$
91,683
 
$
265,052
 
 
78
 
Nuveen Investments

 
 

 
 
7. Management Fees and Other Transactions with Affiliates
Each Fund’s management fee compensates the Adviser for overall investment advisory and administrative services and general office facilities. The Sub-Adviser is compensated for its services to the Funds from the management fees paid to the Adviser.
 
Each Fund’s management fee consists of two components – a fund-level fee, based only on the amount of assets within the Fund, and a complex-level fee, based on the aggregate amount of all eligible fund assets managed by the Adviser. This pricing structure enables Fund shareholders to benefit from growth in the assets within their respective Fund as well as from growth in the amount of complex-wide assets managed by the Adviser.
 
The annual fund-level fee for each Fund, payable monthly, is calculated according to the following schedules:
 
 
California Premium Income (NCU)
Average Daily Managed Assets*
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 managed assets over $5 billion
.3750
 

 
California Dividend Advantage (NAC)
 
California Dividend Advantage 2 (NVX)
 
California Dividend Advantage 3 (NZH)
 
California AMT-Free Income (NKX)
Average Daily Managed Assets*
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 managed assets over $2 billion
.3750
 
 
The annual complex-level fee for each Fund, payable monthly, is calculated according to the following schedule:
 
Complex-Level Managed Asset Breakpoint Level*
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
 
 
*
For the fund-level and complex-level fees, managed assets include closed-end fund assets managed by the Adviser that are attributable to certain types of leverage. For these purposes, leverage includes the funds’ use of preferred stock and borrowings and certain investments in the residual interest certificates (also called inverse floating rate securities) in tender option bond (TOB) trusts, including the portion of assets held by a TOB trust that has been effectively financed by the trust’s issuance of floating rate securities, subject to an agreement by the Adviser as to certain funds to limit the amount of such assets for determining managed assets in certain circumstances. The complex-level fee is calculated based upon the aggregate daily managed assets of all Nuveen Funds that constitute “eligible assets.” Eligible assets do not include assets attributable to investments in other Nuveen Funds and assets in excess of $2 billion added to the Nuveen Fund complex in connection with the Adviser’s assumption of the management of the former First American Funds effective January 1, 2011. As of August 31, 2013, the complex-level fee rate for these Funds was .1694%.
 
Nuveen Investments
 
79

 
 

 
 
Notes to Financial Statements (Unaudited) (continued)
 
The Funds pay no compensation directly to those of its trustees 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 Trustees has adopted a deferred compensation plan for independent trustees that enables trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from certain Nuveen-advised funds. Under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of select Nuveen-advised funds.
 
8. Subsequent Events
 
Refinancing of MTP Shares
Subsequent to the close of this reporting period, California Dividend Advantage 3 (NZH) redeemed all series of its MTP Shares, at their $10.00 liquidation value per share plus an additional amount representing any dividend amounts owed, with the proceeds of newly issued VRDP Shares. On September 26, 2013, VRDP Shares were issued to qualified institutional buyers in a private offering pursuant to Rule 144A of the Securities Act of 1933 and California Dividend Advantage 3 (NZH)’s MTP Shares were redeemed on October 7, 2013.
 
Approved Fund Reorganizations
On October 13, 2013 (subsequent to the close of this reporting period) the Nuveen Funds Board of Directors/Trustees approved a series of reorganizations for certain of the California Funds included in this report. The reorganizations are subject to customary conditions, including shareholder approval at annual shareholder meetings in early 2014. Each reorganization is intended to create one, larger-state fund, which would potentially offer shareholders the following benefits:
 
 
Lower fund expense ratios (excluding the effects of leverage), as fixed costs are spread over a larger asset base;
     
 
Enhanced secondary market trading, as larger funds potentially make it easier for investors to buy and sell fund shares;
     
 
Lower per share trading costs through reduced bid/ask spreads due to a larger common share float; and
     
 
Increased fund flexibility in managing the structure and cost of leverage over time.
 
The approved reorganizations are as follows:
 
Acquired Funds
 
Acquiring Funds
Nuveen California Performance Plus Municipal Fund, Inc. (NCP)
   
Nuveen California Municipal Market Opportunity Fund, Inc. (NCO)
   
Nuveen California Investment Quality Municipal Fund, Inc. (NQC)
 
California Dividend Advantage (NAC)
Nuveen California Select Quality Municipal Fund, Inc. (NVC)
   
Nuveen California Quality Income Municipal Fund, Inc. (NUC)
   
California Premium Income (NCU)
 
California AMT-Free Income (NKX)
 
Upon the closing of a reorganization, an Acquired Fund transfers its assets to the Acquiring Fund in exchange for common and preferred shares of the Acquiring Fund, and the assumption by the Acquiring Fund of the liabilities of the Acquired Fund. Each Acquired Fund is then liquidated, dissolved and terminated in accordance with its Declaration of Trust. Shareholders of each Acquired Fund become shareholders of the Acquiring Fund. Holders of common shares receive newly issued common shares of their Acquiring Fund, the aggregate net asset value of which equal the aggregate net asset value of the common shares of the Acquired Fund held immediately prior to the reorganization (including for this purpose fractional Acquiring Fund shares to which shareholders are entitled). Fractional shares are sold on the open market and shareholders received cash in lieu of such fractional shares. Holders of preferred shares of each Acquired Fund receive on a one-for-one basis newly issued preferred shares of their Acquiring Fund, in exchange for preferred shares of the Acquired Fund held immediately prior to the reorganizations.
 
80
 
Nuveen Investments

 
 

 
Annual Investment Management
  Agreement Approval Process (Unaudited)
 
The Board of Trustees (each, a “Board” and each Trustee, a “Board Member”) of the Funds, including the Board Members who are not parties to the Funds’ advisory or sub-advisory agreements or “interested persons” of any such parties (the “Independent Board Members”), is responsible for approving the advisory agreements (each, an “Investment Management Agreement”) between each Fund and Nuveen Fund Advisors, LLC (the “Adviser”) and the sub-advisory agreements (each, a “Sub-Advisory Agreement”) between the Adviser and Nuveen Asset Management, LLC (the “Sub-Adviser”) (the Investment Management Agreements and the Sub-Advisory Agreements are referred to collectively as the “Advisory Agreements”) and their periodic continuation. Pursuant to the Investment Company Act of 1940, as amended (the “1940 Act”), the Board is required to consider the continuation of the Advisory Agreements on an annual basis. Accordingly, at an in-person meeting held on May 20-22, 2013 (the “May Meeting”), the Board, including a majority of the Independent Board Members, considered and approved the continuation of the Advisory Agreements for the Funds for an additional one-year period.
 
In preparation for its considerations at the May Meeting, the Board requested and received extensive materials prepared in connection with the review of the Advisory Agreements. The materials provided a broad range of information regarding the Funds, the Adviser and the Sub-Adviser (the Adviser and the Sub-Adviser are collectively, the “Fund Advisers” and each, a “Fund Adviser”). As described in more detail below, the information provided included, among other things, a review of Fund performance, including Fund investment performance assessments against peer groups and appropriate benchmarks; a comparison of Fund fees and expenses relative to peers; a description and assessment of shareholder service levels for the Funds; a summary of the performance of certain service providers; a review of product initiatives and shareholder communications; and an analysis of the Adviser’s profitability with comparisons to comparable peers in the managed fund business. As part of its annual review, the Board also held a separate meeting on April 17-18, 2013, to review the Funds’ investment performance and consider an analysis provided by the Adviser of the Sub-Adviser which generally evaluated the Sub-Adviser’s investment team, investment mandate, organizational structure and history, investment philosophy and process, performance of the applicable Fund, and significant changes to the foregoing. As a result of its review of the materials and discussions, the Board presented the Adviser with questions and the Adviser responded.
 
The materials and information prepared in connection with the annual review of the Advisory Agreements supplement the information and analysis provided to the Board during the year. In this regard, throughout the year, the Board, acting directly or through its committees, regularly reviews the performance and various services provided by the Adviser and the Sub-Adviser. The Board meets at least quarterly as well as at other times as the need arises. At its quarterly meetings, the Board reviews reports by the Adviser regarding, among other things, fund performance, fund expenses, premium and discount levels of closed-end funds, the performance of the investment teams, and compliance, regulatory and risk management matters. In addition to regular reports, the Adviser provides special reports to the Board or a committee thereof from time to time to enhance the Board’s understanding of various topics that impact some or all the Nuveen funds (such as accounting and financial statement presentations of the various forms of leverage that may be used by a closed-end fund or an update on the valuation policies and procedures), to update
 
Nuveen Investments
 
81

 
 

 
 
Annual Investment Management Agreement Approval Process (Unaudited) (continued)
 
the Board on regulatory developments impacting the investment company industry or to update the Board on the business plans or other matters impacting the Adviser. The Board also meets with key investment personnel managing the fund portfolios during the year. In October 2011, the Board also created two standing committees (the Open-End Fund Committee and the Closed-End Fund Committee) to assist the full Board in monitoring and gaining a deeper insight into the distinctive business practices of open-end and closed-end funds. These Committees meet prior to each quarterly Board meeting, and the Adviser provides presentations to these Committees permitting them to delve further into specific matters or initiatives impacting the respective product line.
 
In addition, the Board continues its program of seeking to have the Board Members or a subset thereof visit each sub-adviser to the Nuveen funds at least once over a multiple year rotation, meeting with key investment and business personnel. In this regard, the Independent Board Members visited certain of the Sub-Adviser’s investment teams in Minneapolis in September 2012, and the Sub-Adviser’s municipal team in November 2012. In addition, the ad hoc Securities Lending Committee of the Board met with certain service providers and the Audit Committee of the Board made a site visit to three pricing service providers.
 
The Board considers the information provided and knowledge gained at these meetings and visits during the year when performing its annual review of the Advisory Agreements. The Independent Board Members also are assisted throughout the process by independent legal counsel. Counsel provided materials describing applicable law and the duties of directors or trustees in reviewing advisory contracts. During the course of the year and during their deliberations regarding the review of advisory contracts, the Independent Board Members met with independent legal counsel in executive sessions without management present. In addition, it is important to recognize that the management arrangements for the Nuveen funds are the result of many years of review and discussion between the Independent Board Members and fund management and that the Board Members’ conclusions may be based, in part, on their consideration of fee arrangements and other factors developed in previous years.
 
The Board considered all factors it believed relevant with respect to each Fund, including among other factors: (a) the nature, extent and quality of the services provided by the Fund Advisers, (b) the investment performance of the Fund and Fund Advisers, (c) the advisory fees and costs of the services to be provided to the Fund and the profitability of the Fund Advisers, (d) the extent of any economies of scale, (e) any benefits derived by the Fund Advisers from the relationship with the Fund and (f) other factors. 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 Agreements. 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.
 
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 the Fund Adviser’s services, including advisory services and the resulting Fund performance and administrative services. The Independent Board Members further considered the overall reputation and capabilities of the Adviser and its affiliates, the commitment of the Adviser to provide high quality service to the Funds, their overall confidence in the capability and integrity of the Adviser and its staff and the Adviser’s responsiveness to questions and concerns raised by them. The Independent Board Members reviewed materials outlining, among other things, the Fund Adviser’s organization and business; the types of services that the Fund Adviser or its affiliates provide to the
 
82
 
Nuveen Investments

 
 

 
 
Funds; the performance record of the applicable Fund (as described in further detail below); and any applicable initiatives Nuveen had taken for the closed-end fund product line.
 
In considering advisory services, the Board recognized that the Adviser provides various oversight, administrative, compliance and other services for the Funds and the Sub-Adviser generally provides the portfolio investment management services to the Funds. In reviewing the portfolio management services provided to each Fund, the Board reviewed the materials provided by the Nuveen Investment Services Oversight Team analyzing, among other things, the Sub-Adviser’s investment team and changes thereto, organization and history, assets under management, the investment team’s philosophy and strategies in managing the Fund, developments affecting the Sub-Adviser or Fund and Fund performance. The Independent Board Members also reviewed portfolio manager compensation arrangements to evaluate each Fund Adviser’s ability to attract and retain high quality investment personnel, preserve stability, and reward performance but not provide an inappropriate incentive to take undue risks. In addition, the Board considered the Adviser’s execution of its oversight responsibilities over the Sub-Adviser. Given the importance of compliance, the Independent Board Members also considered Nuveen’s compliance program, including the report of the chief compliance officer regarding the Funds’ compliance policies and procedures; the resources dedicated to compliance; and the record of compliance with the policies and procedures. Given the Adviser’s emphasis on business risk, the Board also appointed an Independent Board Member as a point person to review and keep the Board apprised of developments in this area during the year.
 
In addition to advisory services, the Board considered the quality and extent of administrative and other non-investment advisory services the Adviser and its affiliates provide to the Funds, including product management, investment services (such as oversight of investment policies and procedures, risk management, and pricing), fund administration, oversight of service providers, shareholder services and communications, administration of Board relations, regulatory and portfolio compliance, legal support, managing leverage and promoting an orderly secondary market for common shares. The Board further recognized Nuveen’s additional investments in personnel, including in compliance and risk management.
 
In reviewing the services provided, the Board considered the new services and service enhancements that the Adviser has implemented since the various advisory agreements were last reviewed. In reviewing the activities of 2012, the Board recognized the Adviser’s focus on product rationalization for both closed-end and open-end funds during the year, consolidating certain Nuveen funds through mergers that were designed to improve efficiencies and economies of scale for shareholders, repositioning various Nuveen funds through updates in their investment policies and guidelines with the expectation of bringing greater value to shareholders, and liquidating certain Nuveen funds. The Board recognized the Adviser’s significant investment in technology initiatives to, among other things, create a central repository for fund and other Nuveen product data, develop a group within the Adviser designed to handle and analyze fund performance data, and implement a data system to support the risk oversight group. The Board also recognized the enhancements in the valuation group within the Adviser, including upgrading the team and process and automating certain basic systems, and in the compliance group with the addition of personnel, particularly within the testing group. With the advent of the Open-End Fund Committee and Closed-End Fund Committee, the Board also noted the enhanced support and comprehensive in-depth presentations provided by the Adviser to these committees.
 
In addition to the foregoing actions, the Board also considered other initiatives related to the Nuveen closed-end funds, including the significant level of oversight and administration necessary to manage leverage that has become increasingly varied and complex and the ongoing redesign of technology systems to manage and track the various
 
Nuveen Investments
 
83

 
 

 
 
Annual Investment Management Agreement Approval Process (Unaudited) (continued)
 
forms of leverage; continued capital management services, including developing shelf offering programs for various funds; the implementation of projects designed to enhance data integrity for information published on the web and to increase the use of data received from third parties to gain market intelligence; and the continued communication efforts with shareholders, fund analysts and financial advisers. With respect to the latter, the Independent Board Members noted Nuveen’s continued commitment to supporting the secondary market for the common shares of its closed-end funds through a comprehensive secondary market communication program and campaigns designed to raise investor and analyst awareness and understanding of closed-end funds. Nuveen’s support services included, among other things: developing materials covering the Nuveen closed-end fund product line and educational materials regarding closed-end funds; designing and executing various marketing campaigns; supporting and promoting the alternative minimum tax (AMT)-free funds; sponsoring and participating in conferences; communicating with closed-end fund analysts and financial advisers throughout the year; providing marketing and product updates for the closed-end funds; and maintaining and enhancing a closed-end fund website.
 
Based on their review, the Independent Board Members found that, overall, the nature, extent and quality of services provided to the respective Funds under each applicable Advisory Agreement were satisfactory.
 
B. The Investment Performance of the Funds and Fund Advisers
The Board, including the Independent Board Members, considered the performance history of each Fund over various time periods. The Board reviewed reports, including an analysis of the Funds’ performance and the applicable investment team. In general, in considering a fund’s performance, the Board recognized that a fund’s performance can be reviewed through various measures including the fund’s absolute return, the fund’s return compared to the performance of other peer funds, and the fund’s performance compared to its respective benchmark. Accordingly, the Board reviewed, among other things, each Fund’s historic investment performance as well as information comparing the Fund’s performance information with that of other funds (the “Performance Peer Group”) and with recognized and/or customized benchmarks (i.e., generally benchmarks derived from multiple recognized benchmarks) for the quarter, one-, three- and five-year periods ending December 31, 2012 as well as performance information reflecting the first quarter of 2013. In addition, with respect to closed-end funds (such as the Funds), the Independent Board Members also reviewed historic premium and discount levels, including a summary of actions taken to address or discuss other developments affecting the secondary market discounts of various funds. This information supplemented the fund performance information provided to the Board at each of its quarterly meetings.
 
In evaluating performance, the Board recognized several factors that may impact the performance data as well as the consideration given to particular performance data. The Board recognized that the performance data reflects a snapshot of time, in this case as of the end of the most recent calendar year or quarter. The Board noted that selecting a different performance period could derive significantly different results. Further, the Board recognized that it is possible that long-term performance can be adversely affected by even one period of significant underperformance so that a single investment decision or theme has the ability to disproportionately affect long-term performance. The Independent Board Members also noted that the investment experience of a particular shareholder in the Nuveen funds will vary depending on when such shareholder invests in the applicable fund, the class held (if multiple classes are offered in a fund) and the performance of the fund (or respective class) during that shareholder’s investment period.
 
With respect to the comparative performance information, the Board recognized that the usefulness of comparative performance data as a frame of reference to measure a fund’s performance may be limited because the Performance
 
84
 
Nuveen Investments

 
 

 
 
Peer Group, among other things, does not adequately reflect the objectives and strategies of the fund, has a different investable universe, or the composition of the peer set may be limited in size or number as well as other factors. In this regard, the Board noted that the Adviser classified, in relevant part, the Performance Peer Groups of certain funds as having significant differences from the funds but to still be somewhat relevant while the Performance Peer Groups of other funds (including the Nuveen California AMT-Free Municipal Income Fund (the “AMT-Free Fund”)) were classified as having such significant differences as to be irrelevant. Accordingly, while the Board is cognizant of the relative performance of a fund’s peer set and/or benchmark(s), the Board evaluated fund performance in light of the respective fund’s investment objectives, investment parameters and guidelines and considered that the variations between the objectives and investment parameters or guidelines of the funds with their peers and/or benchmarks result in differences in performance results. In addition, with respect to any Nuveen funds for which the Board has identified performance concerns, the Board monitors such funds closely until performance improves, discusses with the Adviser the reasons for such results, considers those steps necessary or appropriate to address such issues, and reviews the results of any efforts undertaken.
 
In considering the performance data for the Funds, the Independent Board Members noted that the Nuveen California Dividend Advantage Municipal Fund (the “Dividend Advantage Fund”) had demonstrated generally favorable performance in comparison to peers, performing in the second quartile over various periods. In addition, the Independent Board Members noted that the Nuveen California Dividend Advantage Municipal Fund 2 (the “Dividend Advantage Fund 2”), the Nuveen California Dividend Advantage Municipal Fund 3 (the “Dividend Advantage Fund 3”) and the Nuveen California Premium Income Municipal Fund (the “Premium Income Fund”) had satisfactory performance compared to peers, performing in the second or third quartile over various periods and outperforming their respective benchmarks in the one-, three- and five-year periods. In considering the performance data for the AMT-Free Fund, given that, as noted above, the Performance Peer Group for such Fund was classified as irrelevant, thereby limiting the usefulness of the peer comparison data, the Board also considered such Fund’s performance compared to its benchmark and noted that such Fund had outperformed its benchmark over the one-, three- and five-year periods.
 
Based on their review, the Independent Board Members determined that each Fund’s investment performance 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, net management fees and net expense ratio in absolute terms as well as compared to the fees and expenses of a comparable universe of funds provided by an independent fund data provider (the “Peer Universe”) and any expense limitations.
 
The Independent Board Members further reviewed the methodology regarding the construction of the applicable Peer Universe. 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 limited size and particular composition of the Peer Universe (including the inclusion of other Nuveen funds in the peer set); expense anomalies; changes in the funds comprising the Peer Universe from year to year; levels of reimbursement or fee waivers; the timing of information used; the differences in the type and use of leverage; and differences in the states reflected in the
 
Nuveen Investments
 
85

 
 

 
 
Annual Investment Management Agreement Approval Process (Unaudited) (continued)
 
Peer Universe may impact the comparative data, thereby limiting somewhat the ability to make a meaningful comparison with peers.
 
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. In reviewing fees and expenses (excluding leverage costs and leveraged assets, as applicable), the Board considered the expenses and fees to be higher if they were over 10 basis points higher, slightly higher if they were approximately 6 to 10 basis points higher, in line if they were within approximately 5 basis points higher than the peer average and below if they were below the peer average of the Peer Universe. In reviewing the reports, the Board noted that the majority of the Nuveen funds were at, close to or below their peer set average based on the net total expense ratio.
 
The Independent Board Members noted that the Dividend Advantage Fund had a net management fee that was slightly higher than its peer average, but a net expense ratio that was below its peer average. In addition, they noted that the Premium Income Fund had a slightly higher net management fee and net expense ratio compared to its peer averages; the relatively higher expense ratio was generally due to certain limitations with the peer group. They also noted that the AMT-Free Fund had a net expense ratio that was higher than its peer average, but a net management fee that was in line with its peer average. Finally, the Independent Board Members noted that the Dividend Advantage Fund 2 and the Dividend Advantage Fund 3 each had a net management fee that was in line with its respective peer average and a net expense ratio that was below its respective peer average.
 
Based on their review of the fee and expense information provided, the Independent Board Members determined that each Fund’s management fees to a Fund Adviser 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 Board recognized that all Nuveen funds have a sub-adviser (which, in the case of the Funds, is an affiliated sub-adviser), and therefore, the overall fund management fee can be divided into two components, the fee retained by the Adviser and the fee paid to the sub-adviser. In general terms, the fee to the Adviser reflects the administrative services it provides to support the funds, and while some administrative services may occur at the sub-adviser level, the fee generally reflects the portfolio management services provided by the sub-adviser. The Independent Board Members reviewed information regarding the nature of services provided by the Adviser, including through the Sub-Adviser, and the range of fees and average fee the Sub-Adviser assessed for such services to other clients. Such other clients include municipal separately managed accounts and passively managed exchange traded funds (ETFs) sub-advised by the Adviser. 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. Many of the additional administrative services provided by the Adviser are not required for institutional
 
86
 
Nuveen Investments
 
 
 

 
 
clients. Given the inherent differences in the various 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 Fund Advisers
In conjunction with their review of fees, the Independent Board Members also considered the profitability of Nuveen for its advisory activities and its financial condition. The Independent Board Members reviewed the revenues and expenses of Nuveen’s advisory activities for the last two calendar years, the allocation methodology used in preparing the profitability data and an analysis of the key drivers behind the changes in revenues and expenses that impacted profitability in 2012. 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 have an Independent Board Member serve 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 also considered Nuveen’s revenues for advisory activities, expenses, and profit margin compared to that of various unaffiliated management firms with comparable assets under management (based on asset size and asset composition).
 
In reviewing profitability, the Independent Board Members recognized the Adviser’s continued investment in its business to enhance its services, including capital improvements to investment technology, updated compliance systems, and additional personnel. In addition, in evaluating profitability, the Independent Board Members also recognized the subjective nature of determining profitability which may be affected by numerous factors including the allocation of expenses and that various allocation methodologies may each be reasonable but yield different results. 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. Based on their review, the Independent Board Members concluded that the Adviser’s level of profitability for its advisory activities was reasonable in light of the services provided.
 
With respect to sub-advisers affiliated with Nuveen, including the Sub-Adviser, the Independent Board Members reviewed the sub-adviser’s revenues, expenses and profitability margins (pre- and post-tax) for its advisory activities and the methodology used for allocating expenses among the internal sub-advisers. Based on their review, the Independent Board Members were satisfied that the Sub-Adviser’s level of profitability 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 a Fund Adviser by the Funds as well as indirect benefits (such as soft dollar arrangements), if any, the Fund Adviser and its affiliates receive, or are expected to receive, that are directly attributable to the management of the Funds. See Section E below for additional information on indirect benefits a Fund Adviser 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.
 
Nuveen Investments
 
87

 
 

 
 
Annual Investment Management Agreement Approval Process (Unaudited) (continued)
 
D. Economies of Scale and Whether Fee Levels Reflect These Economies of Scale
With respect to economies of scale, the Independent Board Members have recognized the potential benefits resulting from the costs of a fund being spread over a larger asset base, although economies of scale are difficult to measure and predict with precision, particularly on a fund-by-fund basis. One method to help ensure the shareholders share in these benefits is to include breakpoints in the advisory fee schedule. Generally, management fees for funds in the Nuveen complex are comprised of a fund-level component and a complex-level component, subject to certain exceptions. Accordingly, the Independent Board Members reviewed and considered the applicable fund-level breakpoints in the advisory fee schedules that reduce advisory fees as asset levels increase. Further, the Independent Board Members noted that although closed-end funds may from time-to-time make additional share offerings, the growth of their assets will occur primarily through the appreciation of such funds’ 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 are generally reduced as the assets in the fund complex reach certain levels. The complex-wide fee arrangement seeks to provide the benefits of economies of scale to fund shareholders when total fund 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. In addition, with the acquisition of the funds previously advised by FAF Advisors, Inc. at the end of 2010, the Board noted that a portion of such funds’ assets at the time of acquisition were deemed eligible to be included in the complex-wide fee calculation in order to deliver fee savings to shareholders in the combined complex and such funds were subject to differing complex-level fee rates.
 
Based on their review, the Independent Board Members concluded that the breakpoint schedules and complex-wide fee arrangement were acceptable and reflect economies of scale to be shared with shareholders when assets under management increase.
 
E. Indirect Benefits
In evaluating fees, the Independent Board Members received and considered information regarding potential “fall out” or ancillary benefits the respective Fund Adviser or its affiliates may receive as a result of its relationship with each Fund. In this regard, the Independent Board Members considered any revenues received by affiliates of the Adviser for serving as co-manager in initial public offerings of new closed-end funds as well as revenues received in connection with secondary offerings.
 
In addition to the above, the Independent Board Members considered whether the Fund Advisers 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 the Fund Adviser in managing the assets of the Funds and other clients. The Funds’ portfolio transactions are determined by the Sub-Adviser. Accordingly, the Independent Board Members considered that the Sub-Adviser may benefit from its soft dollar arrangements pursuant to which it receives research from brokers that execute the Funds’ portfolio transactions. With respect to fixed income securities, however, the Board recognized that such securities generally trade on a principal basis that does not generate soft dollar credits. Nevertheless, the Sub-Adviser may engage in soft dollar arrangements on behalf of other clients, and the Funds as well as the Sub-Adviser may benefit from the research or other services received. Similarly, the Board recognized that the research received pursuant to soft dollar arrangements by the Sub-Adviser may also benefit a Fund and shareholders
 
88
 
Nuveen Investments

 
 

 
 
to the extent the research enhances the ability of the Sub-Adviser to manage the Fund. The Independent Board Members noted that the Sub-Adviser’s profitability may be somewhat lower if it did not receive the research services pursuant to the soft dollar arrangements and had to acquire such services directly.
 
Based on their review, the Independent Board Members concluded that any indirect benefits received by a Fund Adviser 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 each Advisory Agreement are fair and reasonable, that the respective Fund Adviser’s fees are reasonable in light of the services provided to each Fund and that the Advisory Agreements be renewed.
 
Nuveen Investments
 
89

 
 

 
 
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 Automatic Reinvestment Plan
 
Nuveen Closed-End Fund allows you to conveniently reinvest 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 compounding. Just like distributions in cash, there may be times when income or capital gains taxes may be payable on 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 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. Distributions received to purchase shares in the open market will normally be invested shortly after the distribution payment date. No interest will be paid on 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 distribution had been paid in shares issued by the Fund. A pro rata portion of any applicable brokerage commissions on open market purchases will be paid by Plan participants. These commissions usually will be lower than those charged on individual transactions.
 
Flexible
 
You may change your distribution option or withdraw from the Plan at any time, should your needs or situation change. 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 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.
 
90
 
Nuveen Investments

 
 

 
 
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.
   
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.
   
Effective Leverage: Effective leverage is a fund’s effective economic leverage, and includes both regulatory leverage (see leverage) and the leverage effects of certain derivative investments in the fund’s portfolio. Currently, the leverage effects of Tender Option Bond (TOB) inverse floater holdings are included in effective leverage values, in addition to any regulatory leverage.
   
Gross Domestic Product (GDP): The total market value of all final goods and services produced in a country/region in a given year, equal to total consumer, investment and government spending, plus the value of exports, minus the value of imports.
   
Inverse Floating Rate Securities: Inverse floating rate securities, also known as inverse floaters or tender option bonds (TOBs), 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: Leverage is created whenever a fund has investment exposure (both reward and/or risk) equivalent to more than 100% of the investment capital.
   
Lipper California Municipal Debt Funds Classification Average: Calculated using the returns of all closed-end funds in this category. Lipper returns account for the effects of management fees and assume reinvestment of distributions, but do not reflect any applicable sales charges.
 
Nuveen Investments
 
91

 
 

 
 
Glossary of Terms Used in this Report (continued)
 
Net Asset Value (NAV): The net market value of all securities held in a portfolio.
   
Net Asset Value (NAV) Per Share: The market value of one share of a mutual fund or closed-end fund. For a fund, NAV is calculated daily by taking the fund’s total assets (securities, cash, and accrued earnings), subtracting the fund’s liabilities, and dividing by the number of shares outstanding.
   
Pre-Refunding: Pre-Refunding, also known as advanced refundings or refinancings, is a procedure used by state and local governments to refinance municipal bonds to lower interest expenses. The issuer sells new bonds with a lower yield and uses the proceeds to buy U.S. Treasury securities, the interest from which is used to make payments on the higher-yielding bonds. Because of this collateral, pre-refunding generally raises a bond’s credit rating and thus its value.
   
Regulatory Leverage: Regulatory leverage consists of preferred shares issued by or borrowings of a fund. Both of these are part of a fund’s capital structure. Regulatory leverage is subject to asset coverage limits set in the Investment Company Act of 1940.
   
S&P Municipal Bond California Index: An unleveraged, market value-weighted index designed to measure the performance of the tax-exempt, investment-grade California municipal bond market. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
   
S&P Municipal Bond Index: An unleveraged, market value-weighted index designed to measure the performance of the tax-exempt, investment-grade U.S. municipal bond market. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
   
Total Investment Exposure: Total investment exposure is a fund’s assets managed by the Adviser that are attributable to financial leverage. For these purposes, financial leverage includes a fund’s use of preferred stock and borrowings and investments in the residual interest certificates (also called inverse floating rate securities) in tender option bond (TOB) trusts, including the portion of assets held by a TOB trust that has been effectively financed by the trust’s issuance of floating rate securities.
   
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.
 
92
 
Nuveen Investments

 
 

 
 
Notes
 
Nuveen Investments
 
93

 
 

 
 
Notes
 
94
 
Nuveen Investments

 
 

 
 
Additional Fund Information
 
Board of Trustees
         
William Adams IV*
Robert P. Bremner
Jack B. Evans
William C. Hunter
David J. Kundert
John K. Nelson
William J. Schneider
Thomas S. Schreier, Jr.*
Judith M. Stockdale
Carole E. Stone
Virginia L. Stringer
Terence J. Toth
 
* Interested Board Member.
 

Fund Manager
Custodian
Legal Counsel
Independent Registered
Transfer Agent and
Nuveen Fund Advisors, LLC
State Street Bank
Chapman and Cutler LLP
Public Accounting Firm
Shareholder Services
333 West Wacker Drive
& Trust Company
Chicago, IL 60603
Ernst & Young LLP
State Street Bank
Chicago, IL 60606
Boston, MA 02111
 
Chicago, IL 60606
& Trust Company
       
Nuveen Funds
       
P.O. Box 43071
       
Providence, RI 02940-3071
       
(800) 257-8787
 
Quarterly Form N-Q Portfolio of Investments Information
Each Fund is required to file its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q. You may obtain this information directly from the SEC. 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 toll-free at (800) SEC -0330 for room hours and operation.
 
Nuveen Funds’ Proxy Voting Information
You may obtain (i) information regarding how each fund voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, without charge, upon request, by calling Nuveen Investments toll-free at (800) 257-8787 or on Nuveen’s website at www.nuveen.com and (ii) a description of the policies and procedures that each fund 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. You may also obtain this information directly from the SEC. Visit the SEC on-line at http://www.sec.gov. 

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 SEC the certification of its Chief Executive Officer and Chief Financial Officer required by Section 302 of the Sarbanes-Oxley Act. 

Common Share Information
Each Fund intends to repurchase shares of its own common stock at such times and in such amounts as is deemed advisable. During the period covered by this report, the Fund repurchased shares of its common stock as shown in the accompanying table. Any future repurchases will be reported to shareholders in the next annual or semi-annual report.
 
 
NCU
NAC
NVX
NZH
NKX
 
Common shares repurchased
 
 
Nuveen Investments
 
95

 
 

 
 
 
Nuveen Investments:
  Serving Investors for Generations
 

Since 1898, financial advisors and their clients have relied on Nuveen Investments to provide dependable investment solutions through continued adherence to proven, long-term investing principles. Today, we offer a range of high quality equity and fixed-income solutions designed to be integral components of a well-diversified core portfolio.
 

Focused on meeting investor needs.
 
Nuveen Investments provides high-quality investment services designed to help secure the long-term goals of institutional and individual investors as well as the consultants and financial advisors who serve them. Nuveen Investments markets a wide range of specialized investment solutions which provide investors access to capabilities of its high-quality boutique investment affiliates—Nuveen Asset Management, Symphony Asset Management, NWQ Investment Management Company, Santa Barbara Asset Management, Tradewinds Global Investors, Winslow Capital Management and Gresham Investment Management. In total, Nuveen Investments managed $216 billion as of June 30, 2013.
 

Find out how we can help you.
 
To learn more about how the products and services of Nuveen Investments may be able to help you meet your financial goals, talk to your financial advisor, or call us at (800) 257-8787. Please read the information provided carefully before you invest. Investors should consider the investment objective and policies, risk considerations, charges and expenses of any investment carefully. Where applicable, be sure to obtain a prospectus, which contains this and other relevant information. To obtain a prospectus, please contact your securities representative or Nuveen Investments, 333 W. Wacker Dr., Chicago, IL 60606. Please read the prospectus carefully before you invest or send money.
 
Learn more about Nuveen Funds at: www.nuveen.com/cef
 
Distributed by Nuveen Investments, LLC | 333 West Wacker Drive | Chicago, IL 60606 | www.nuveen.com
 
ESA-B-0813D

 
 

 
  
ITEM 2. CODE OF ETHICS.

Not applicable to this filing.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

Not applicable to this filing.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Not applicable to this filing.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable to this filing.

ITEM 6. SCHEDULE OF INVESTMENTS.

(a) See Portfolio of Investments in Item 1.

(b) Not applicable.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable to this filing.

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable to this filing.

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.

(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 to this filing.

(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: See 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: See 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 AMT-Free Municipal Income Fund

By (Signature and Title) /s/ Kevin J. McCarthy
Kevin J. McCarthy
Vice President and Secretary

Date: November 8, 2013
 
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title) /s/ Gifford R. Zimmerman
Gifford R. Zimmerman
Chief Administrative Officer
(principal executive officer)

Date: November 8, 2013

By (Signature and Title) /s/ Stephen D. Foy
Stephen D. Foy
Vice President and Controller
 (principal financial officer)

Date: November 8, 2013