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 811-09161
---------------------
Nuveen California Dividend Advantage Municipal 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)
Jessica R. Droeger
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: August 31
------------------
Date of reporting period: February 28, 2005
------------------
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.
SEMIANNUAL REPORT February 28, 2005
Nuveen Investments
Municipal Closed-End
Exchange-Traded
Funds
NUVEEN INSURED CALIFORNIA PREMIUM INCOME MUNICIPAL FUND, INC.
NPC
NUVEEN INSURED CALIFORNIA PREMIUM INCOME MUNICIPAL FUND 2, INC.
NCL
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 INSURED CALIFORNIA DIVIDEND ADVANTAGE MUNICIPAL FUND
NKL
NUVEEN INSURED CALIFORNIA TAX-FREE ADVANTAGE MUNICIPAL FUND
NKX
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Timothy R. Schwertfeger
Chairman of the Board
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Chairman's
LETTER TO SHAREHOLDERS
For all American taxpayers, the date of this chairman's letter carries special
significance. Therefore, I am especially pleased on this day to report that over
the six-month period covered by this semiannual report your Fund continued to
provide you with monthly tax-free income and an attractive total return. For
more details about the management strategy and performance of your Fund, please
see the Portfolio Managers' Perspective and Performance Overview sections of
this report.
As I noted in my last letter to you, our conversations with financial advisers
and investors suggest that many of you may be wondering whether long-term
interest rates will soon begin to rise substantially, how high rates might
eventually go, and whether that makes this a good time to adjust your holdings
of fixed-income investments. We can't answer these questions for you - no one
knows what the future will bring.
"IN FACT, A WELL-DIVERSIFIED PORTFOLIO MAY ACTUALLY HELP TO REDUCE YOUR OVERALL
INVESTMENT RISK."
From our experience, we do know that a well-balanced portfolio, structured and
carefully monitored with the help of a trusted investment professional, can be
an important component in helping you achieve your long-term financial goals. In
fact, a well-diversified portfolio may actually help to reduce your overall
investment risk. That is one reason why we believe that a municipal bond
investment like your Nuveen Fund can be an important building block in a
comprehensive investment program designed to perform well in a variety of market
conditions.
As in past reports, I urge you to consider receiving future Fund reports and
other Fund information by e-mail and the Internet. Not only will you be able to
receive the information faster, but this also may help lower your Fund's
expenses. Sign up is quick and easy - see the inside front cover of this report
for instructions.
Some of you may have heard that in April, 2005, The St. Paul Travelers
Companies, Inc., which had owned 79% of Nuveen Investments, Inc. (the parent of
your Fund's investment adviser) completed a public offering of a substantial
portion of its equity stake in Nuveen. At the same time, St. Paul Travelers also
entered into agreements to sell the balance of its shares in Nuveen to us or to
others at a future date.
These transactions will have no impact on the investment objectives or
management of your Fund. However, taken as a whole they are considered to be an
"assignment" of your Fund's investment management agreement. This means that you
and your fellow Fund shareholders soon will be asked to formally approve the
continuation of your Fund's management contract with Nuveen. We will be sending
you more information about this process in the coming weeks.
At Nuveen Investments, our mission continues to be to assist you and your
financial advisor by offering investment services and products that can help you
to secure your financial objectives. We are grateful that you have chosen us as
a partner as you pursue your financial goals, and we look forward to continuing
to earn your trust in the months and years ahead.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
April 15, 2005
Nuveen California Municipal Closed-End Exchange-Traded Funds
(NPC, NCL, NCU, NAC, NVX, NZH, NKL, NKX)
Portfolio Managers'
COMMENTS
Portfolio managers Dan Solender and Scott Romans review key investment
strategies and the semiannual performance of these Funds. With thirteen years of
investment experience, including nine at Nuveen, Dan assumed portfolio
management responsibility for NPC and NCL in May 2004. Scott, who joined Nuveen
in 2000, has managed NCU, NAC, NVX, NZH, NKL and NKX since January 2003.
WHAT KEY STRATEGIES WERE USED TO MANAGE THESE CALIFORNIA FUNDS DURING THE SIX
MONTHS ENDED FEBRUARY 28, 2005?
Between September 2004 and February 2005, the Federal Reserve introduced four
quarter-point increases in the fed funds rate, raising this short-term interest
rate target from 1.5% to 2.5%. (On March 22, 2005, following the end of this
reporting period, the Fed announced another 0.25% hike, taking the fed funds
rate to 2.75%.) With the market anticipating increases in interest rates
throughout the period, our focus centered on finding bonds that we believed
could add immediate value to the Funds' portfolios and also had the potential to
perform well under a variety of future market scenarios.
Overall, our purchase activity for NCU, NAC, NVX, NZH, NKL and NKX emphasized
finding premium bonds (those trading above their par value) in the intermediate
and long-intermediate parts of the yield curve - that is, bonds that mature in
20 to 25 years. During the last two months of this period, we began to focus on
bonds slightly further out on the yield curve. Generally speaking, our purchases
of specific bonds during this period were influenced primarily by the bond's
positioning on the yield curve, and secondarily on factors such as credit rating
or industry sector, except when the need to maintain adequate diversification
was an issue.
For NPC and NCL, the funds investing exclusively in insured or guaranteed bonds,
we focused our purchase activity during this period on the 15 to 20 year part of
the yield curve. In particular, we looked for credits, especially from smaller
issuers, that had high quality characteristics separate and apart from their
insurance enhancement. This led to the purchase of a number of local school
district and essential services bonds, which helped to diversify the holdings of
these two Funds.
4
Some of these portfolio additions were financed with the proceeds from sales of
pre-refunded bonds, bonds with short call dates, and bonds with shorter
maturities. This was especially true in NPC, NCL and NCU. These holdings with
short effective maturities tended to underperform in the interest rate
environment of the past six months. Some of the proceeds from these sales were
redeployed into bonds with maturities in targeted ranges of the yield curve, and
that offered at least 10 years of call protection.
In NKL and NKX, we also worked to improve the Funds' risk profiles by taking
advantage of opportunities to selectively trim some of our more concentrated BBB
and nonrated positions. Because lower-rated bonds generally performed well over
the past year, demand for these bonds was strong. As a result, we were able to
obtain attractive prices for the bonds we sold. In addition to reducing some of
our concentrated credit positions, this approach enabled us to enhance the
Funds' diversification as we reinvested the proceeds in new lower-rated and
nonrated names when the market provided suitable opportunities. Among the
additions to NCU's and NVX's portfolios during this period was a BBB+ credit
issued for Daughters of Charity Health.
Another strategy designed to help us reduce interest rate risk is hedging some
of the Funds' interest rate exposure through the use of derivative financial
instruments or in the form of interest rate swaps. During this period, we
employed this strategy in NKL and NKX. It is important to note that we did not
use the hedges in an attempt to profit from correctly predicting the timing and
direction of interest rate movements. Instead, our sole objective was to reduce
NKL's and NKX's durations (and therefore their price sensitivity to interest
rate changes) without having a negative impact on their income streams or common
share dividends over the short term. The cost of the hedge is reflected as an
addition or subtraction to the Fund's net asset value (NAV) as the market value
of the hedge fluctuates. The hedges did succeed in reducing the volatility of
the Funds' NAVs over the course of this reporting period, and the hedges had
positive market values as of February 28, 2005.
5
HOW DID THE FUNDS PERFORM OVER THE SIX MONTH PERIOD?
Individual results for the Nuveen California Funds, as well as for comparative
indexes, are presented in the accompanying table.
TOTAL RETURNS ON NET ASSET VALUE*
For periods ended 2/28/05
(Annualized)
NONINSURED CA FUNDS 6-MONTH 1-YEAR 5-YEAR 10-YEAR
--------------------------------------------------------------------------------
NCU 5.14% 5.89% 9.99% 8.18%
--------------------------------------------------------------------------------
NAC 4.74% 5.27% 11.85% NA
--------------------------------------------------------------------------------
NVX 5.38% 5.67% NA NA
--------------------------------------------------------------------------------
NZH 5.12% 5.46% NA NA
--------------------------------------------------------------------------------
Lehman Brothers
CA Tax-Exempt
Bond Index1 2.97% 4.01% 7.21% 6.65%
--------------------------------------------------------------------------------
Lipper CA
Municipal Debt
Funds Average2 2.76% 5.56% 6.53% 5.81%
--------------------------------------------------------------------------------
INSURED CA FUNDS
--------------------------------------------------------------------------------
NPC 2.82% 2.99% 9.26% 7.38%
--------------------------------------------------------------------------------
NCL 3.45% 3.05% 9.20% 7.64%
--------------------------------------------------------------------------------
NKL 4.79% 4.60% NA NA
--------------------------------------------------------------------------------
NKX 5.15% 4.86% NA NA
--------------------------------------------------------------------------------
Lehman Brothers Insured
CA Tax-Exempt
Bond Index1 2.64% 3.04% 7.40% 6.74%
--------------------------------------------------------------------------------
Lipper Insured
CA Municipal Debt
Funds Average2 2.59% 3.74% 6.44% 5.66%
--------------------------------------------------------------------------------
*Six-month returns are cumulative; returns for one year, five years, and ten
years are annualized.
Past performance is not predictive of future results. Current performance may be
higher or lower then the data shown. Returns do not reflect the deduction of
taxes that shareholders may have to pay on Fund distributions or upon the sale
of Fund shares.
For additional information, see the individual Performance Overview for your
Fund in this report.
1 The Lehman Brothers California Tax-Exempt Bond Index is an unleveraged,
unmanaged index comprising a broad range of investment-grade California
municipal bonds. The Lehman Brothers Insured California Tax-Exempt Bond
Index is an unleveraged, unmanaged index containing a broad range of
insured California municipal bonds. Results for the Lehman indexes do not
reflect any expenses.
2 The Lipper California Municipal Debt Funds average is calculated using the
returns of all leveraged and unleveraged closed-end exchange-traded funds
in this category for each period as follows: 6 months, 30 funds; 1 year, 30
funds; 5 years, 19 funds; and 10 years, 17 funds. The Lipper Insured
California Municipal Debt Funds average is calculated using the returns of
all closed-end exchange-traded funds in its category for each period as
follows: 6 months, 13 funds; 1 year, 13 funds; 5 years, 7 funds; and 10
years, 6 funds. Fund and Lipper returns assume reinvestment of dividends.
6
For the six months ended February 28, 2005, the cumulative returns on NAV for
the four noninsured California Funds outperformed the return on the Lehman
Brothers California Tax-Exempt Bond Index, while the four insured Funds
outperformed the Lehman Brothers Insured California Bond index. Each of the
Funds also performed better than the average returns for their respective Lipper
California Fund peer groups.
One of the primary factors benefiting the six-month performances of all these
Funds relative to that of the unleveraged Lehman Brothers indexes was the Funds'
use of financial leverage. While leveraging can add volatility to the Funds'
NAVs and share prices, especially during periods when interest rates rise, this
strategy can also provide opportunities for additional income and total returns
for common shareholders when short-term interest rates remain relatively low and
long-term rates fall or remain fairly constant, as they did during this
reporting period.
Although short-term rates remained historically low over this period, they did
rise in response to increases in the fed funds rate. At the same time,
longer-term yields fell by 20 basis points between the end of August 2004 and
the end of February 2005, as measured by the Bond Buyer 25, a widely followed
municipal bond index. As a result, bonds with longer maturities generally tended
to perform better than securities with shorter maturities. This benefited NVX
and NZH, which were introduced in 2001, and NKL and NKX, which were introduced
in 2002, since these Funds had less exposure to the shorter end of the yield
curve than the four older Funds. This accounts for much of the relative
performance differences between these Funds over the six-month reporting period.
7
In addition, NCU, NAC, NVX and NZH (the noninsured Funds) as well as NKL and NKX
(which predominantly hold insured bonds but can invest up to 20% of their
portfolios in uninsured bonds) benefited from their allocations of lower quality
issues during this period. BBB and nonrated bonds generally outperformed other
credit quality sectors as the economy improved. In particular, the Funds'
returns were helped by our selection of individual nonrated credits, which
tended to outperform the nonrated segment of the market as a whole. Among the
lower-rated credits producing the strongest total returns were bonds backed by
the 1998 master tobacco settlement agreement, as the litigation environment
improved and the supply/demand situation drove tobacco bond prices higher. As of
February 28, 2005, all six of these Funds held positions in tobacco bonds, with
NCU, NVX and NZH allocating approximately 4% of their portfolios to these bonds,
while NAC allocated 2.8%, and NKL and NKX allocated about 1.5% and 1.3%,
respectively.
Our sector allocation decisions also made positive contributions to the Funds'
cumulative six-month returns. In NCU, NAC, NVX, NZH, NKL and NKX especially, our
holdings in healthcare were beneficial, as this sector ranked second in terms of
performance among the Lehman municipal revenue sectors for the period.
One area of the municipal market that tended to underperform during this period
was the pre-refunded sector, due primarily to these bonds' shorter effective
maturities. As of February 28, 2005, NPC had a considerably larger exposure to
pre-refunded bonds than any of the other Funds, and this served as a constraint
on NPC's performance during this period.
8
HOW WERE THE FUNDS POSITIONED IN TERMS OF CREDIT QUALITY AND BOND CALLS AS OF
FEBRUARY 28, 2005?
We continued to believe that, given the current geopolitical and economic
climate, maintaining strong credit quality was an important requirement. As of
February 28, 2005, the four noninsured Funds continued to offer excellent credit
quality, with allocations of bonds rated AAA/U.S. guaranteed and AA ranging from
62% in NAC to 65% in NZH, 67% in NCU, and 70% in NVX. NPC and NCL continued to
be 100% invested in insured and/or U.S. guaranteed securities, while NKL and
NKX, which can invest up to 20% of their assets in uninsured investment-grade
quality securities, had allocated 80% and 82% of their portfolios, respectively,
to insured bonds as of February 28, 2005.
As of February 28, 2005, potential call exposure for the period March 2005
through the end of 2006 ranged from zero in NKL to 2% in NZH, 3% in NAC, 4% in
NVX and NKX, 10% in NPC, 12% in NCU and 15% in NCL. The number of actual bond
calls in all of these Funds depends largely on future market interest rates.
9
Dividend and Share Price
INFORMATION
As short-term interest rates remained relatively low throughout this reporting
period, the leveraged structures of these eight Funds continued to support their
dividend-paying capabilities. The extent of this benefit is tied in part to the
short-term rates these Funds pay their MuniPreferred(R) shareholders. During
periods of low short-term rates, leveraged Funds generally pay lower dividends
to their MuniPreferred shareholders, which can leave more earnings to support
common share dividends. This strategy helped to maintain the dividends of NPC,
NCL, NCU, NAC, NVX, NZH and NKL throughout the reporting period. However, the
rise in short-term interest rates during this period, and the resulting increase
in borrowing costs, was enough to offset some of the leverage advantage in NKX,
which was initially invested during the low rate environment of 2002 and has not
had the same opportunity as the other Funds to build reserves. As a result,
NKX's dividend was reduced in December 2004.
In addition, due to capital gains generated by normal portfolio activity, common
shareholders received capital gains and net ordinary income distributions at the
end of December 2004 as follows:
LONG-TERM
CAPITAL GAINS ORDINARY INCOME
(PER SHARE) (PER SHARE)
--------------------------------------------------------------------------------
NPC $0.1157 $0.0557
--------------------------------------------------------------------------------
NAC $0.0464 $ --
--------------------------------------------------------------------------------
NKL $0.0426 $0.0072
--------------------------------------------------------------------------------
10
All of these Funds seek to pay stable dividends at rates that reflect each
Fund's past results and projected future performance. During certain periods,
each Fund may pay dividends at a rate that may be more or less than the amount
of net investment income actually earned by the Fund during the period. If a
Fund has cumulatively earned more than it has paid in dividends, it holds the
excess in reserve as undistributed net investment income (UNII) as part of the
Fund's NAV. Conversely, if a Fund has cumulatively paid dividends in excess of
its earnings, the excess constitutes negative UNII that is likewise reflected in
the Fund's NAV. Each Fund will, over time, pay all of its net investment income
as dividends to shareholders. As of February 28, 2005, all of the Funds in this
report, with the exception of NKX, had positive UNII balances for both financial
statement and tax purposes. As of February 28, 2005, NKX had a positive UNII
balance for tax purposes and a negative UNII balance for financial statement
purposes.
At the end of the reporting period, the Funds' share prices were trading at
premiums or discounts to their NAVs as shown in the accompanying chart:
2/28/05 6-MONTH AVERAGE
PREMIUM/DISCOUNT PREMIUM/DISCOUNT
--------------------------------------------------------------------------------
NPC 2.55% -2.44%
--------------------------------------------------------------------------------
NCL -1.25% -0.41%
--------------------------------------------------------------------------------
NCU -4.12% -6.87%
--------------------------------------------------------------------------------
NAC -4.88% -4.90%
--------------------------------------------------------------------------------
NVX -7.97% -8.36%
--------------------------------------------------------------------------------
NZH -8.76% -9.76%
--------------------------------------------------------------------------------
NKL -6.17% -5.82%
--------------------------------------------------------------------------------
NKX -1.21% -2.71%
--------------------------------------------------------------------------------
11
Nuveen Insured California Premium Income Municipal Fund, Inc.
NPC
Performance
OVERVIEW As of February 28, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
Insured 78%
U.S. Guaranteed 22%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Mar 0.077
Apr 0.077
May 0.077
Jun 0.077
Jul 0.077
Aug 0.077
Sep 0.077
Oct 0.077
Nov 0.077
Dec 0.077
Jan 0.077
Feb 0.077
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
3/1/04 16.23
16.22
16.35
16.28
16.41
16.4
16.46
16.45
16.43
16.27
16.24
16.28
16.37
16.45
16.34
16.45
16.44
16.64
16.83
16.65
16.65
16.49
16.51
16.52
16.43
16.08
16.05
15.67
15.62
15.28
15
14.84
14.7
14.79
14.75
14.53
14.52
14.53
14.35
14.2
14.15
14.08
14.06
14.14
14.26
14.26
14.05
14.07
13.77
13.26
13.53
13.56
13.8
13.8
14
14.05
14.08
14.2
14.15
14.3
14.28
14.3
14.35
14.29
14.29
14.37
14.31
14.36
14.31
14.28
14.24
14.16
14.21
13.95
14
13.89
13.87
13.76
13.77
13.77
13.78
13.83
13.89
13.83
13.78
13.92
14.25
14.38
14.36
14.51
14.72
14.66
14.68
14.51
14.55
14.64
14.61
14.6
14.55
14.48
14.45
14.45
14.45
14.47
14.47
14.81
14.88
14.88
14.93
14.99
14.88
15.18
15.27
15.11
15.4
15.3
15.07
15.07
15.01
15.36
15.1
15.5
15.39
15.35
15.37
15.37
15.43
15.49
15.74
15.81
15.96
15.91
15.68
15.7
15.68
15.63
15.65
15.94
15.88
15.8
15.8
15.89
15.84
15.76
15.95
15.94
15.78
15.95
15.95
15.99
16.01
15.93
15.84
15.88
15.88
15.75
15.89
16.1
16.1
15.82
15.85
15.68
15.64
15.62
15.69
15.73
15.72
15.75
15.73
15.71
15.69
15.69
15.69
15.6
15.8
15.74
15.75
15.62
15.46
15.48
15.25
15.1
15.19
15.3
15.29
15.3
15.31
15.44
15.4
15.44
15.54
15.53
15.42
15.33
15.23
15.16
15.24
15.33
15.36
15.49
15.43
15.65
15.25
15.18
15.2
15.26
15.82
15.8
15.85
15.44
15.44
15.49
15.7
15.8
15.99
16.06
16.1
16.05
16.25
16.38
16.41
16.15
16.27
16.27
16.23
16.23
16.19
16.21
16.17
16.22
16.24
16.27
16.39
16.28
16.28
16.57
16.56
16.3
16.41
16.45
16.43
16.5
16.57
16.56
16.45
16.45
16.57
16.49
16.49
16.4
16.54
16.47
16.57
16.58
2/28/05 16.46
FUND SNAPSHOT
------------------------------------
Share Price $16.46
------------------------------------
Common Share
Net Asset Value $16.05
------------------------------------
Premium/(Discount) to NAV 2.55%
------------------------------------
Market Yield 5.61%
------------------------------------
Taxable-Equivalent Yield1 8.56%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $103,478
------------------------------------
Average Effective
Maturity on Securities (Years) 17.32
------------------------------------
Leverage-Adjusted Duration 8.09
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/19/92)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 8.27% 2.82%
------------------------------------
1-Year 8.83% 2.99%
------------------------------------
5-Year 10.71% 9.26%
------------------------------------
10-Year 8.87% 7.38%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/General 29.0%
------------------------------------
U.S. Guaranteed 21.6%
------------------------------------
Water and Sewer 16.1%
------------------------------------
Tax Obligation/Limited 15.7%
------------------------------------
Education and Civic
Organizations 6.2%
------------------------------------
Utilities 5.5%
------------------------------------
Other 5.9%
------------------------------------
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34.5%. For investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2004 of $0.1714 per share.
12
Nuveen Insured California Premium Income Municipal Fund 2, Inc.
NCL
Performance
OVERVIEW As of February 28, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
Insured 91%
U.S. Guaranteed 9%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Mar 0.076
Apr 0.076
May 0.076
Jun 0.076
Jul 0.076
Aug 0.076
Sep 0.076
Oct 0.076
Nov 0.076
Dec 0.076
Jan 0.076
Feb 0.076
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
3/1/04 15.67
15.7
15.63
15.64
15.73
15.76
15.76
15.78
15.8
15.63
15.63
15.65
15.74
15.75
15.66
15.7
15.71
15.78
15.91
15.85
15.85
15.85
15.85
15.87
15.7
15.31
14.9
14.8
14.88
14.7
14.47
14.2
14.08
14.1
14.05
13.71
13.76
13.83
13.55
13.43
13.4
13.32
13.32
13.37
13.35
13.38
13.48
13.46
13.16
13.12
13.14
13.14
13.06
13.23
13.25
13.29
13.38
13.42
13.42
13.6
13.72
13.82
13.83
13.97
13.97
13.86
13.92
13.94
13.85
13.8
13.82
13.74
13.77
13.44
13.35
13.27
13.2
13.16
13.2
13.22
13.22
13.25
13.21
13.22
13.23
13.3
13.46
13.65
13.63
13.79
13.8
13.88
14.07
13.91
13.91
13.91
14.11
14.05
13.91
13.81
13.9
13.86
13.99
14
13.95
14.05
14.24
14.24
14.29
14.28
14.43
14.47
14.52
14.6
14.68
14.65
14.79
14.7
14.57
14.76
15.05
14.85
14.9
14.91
14.75
14.9
15.01
15.08
15.06
15.18
15.15
15.12
15.15
15.05
15.15
15.1
15.11
15.14
15.15
15.1
15.11
15.15
15.17
15.22
15.23
15.28
15.3
15.3
15.33
15.37
15.35
15.36
15.45
15.33
15.29
15.26
15.35
15.38
15.42
15.28
15.27
15.27
15.3
15.26
15.29
15.3
15.3
15.3
15.26
15.35
15.41
15.3
15.3
15.4
15.5
15.5
15.5
15.4
15.35
15.25
15.25
15.29
15.3
15.3
15.33
15.25
15.24
15.34
15.5
15.34
15.31
15.35
15.38
15.45
15.41
15.27
15.3
15.31
15.32
15.52
15.44
15.49
15.47
15.52
15.61
15.53
15.37
15.29
15.27
15.14
15.1
15
14.94
15.05
15.17
15.25
15.27
15.3
15.24
15.44
15.39
14.95
15.03
14.91
14.9
14.72
14.68
14.69
14.74
14.69
14.57
14.55
14.62
14.67
14.77
14.92
14.93
14.92
14.97
15.06
15.09
15
15.02
15.04
14.97
15.01
14.98
15.01
14.97
14.91
14.7
14.7
14.84
14.89
2/28/05 14.99
FUND SNAPSHOT
------------------------------------
Share Price $14.99
------------------------------------
Common Share
Net Asset Value $15.18
------------------------------------
Premium/(Discount) to NAV -1.25%
------------------------------------
Market Yield 6.08%
------------------------------------
Taxable-Equivalent Yield1 9.28%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $192,936
------------------------------------
Average Effective
Maturity on Securities (Years) 18.07
------------------------------------
Leverage-Adjusted Duration 7.70
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/18/93)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 1.75% 3.45%
------------------------------------
1-Year 2.52% 3.05%
------------------------------------
5-Year 9.94% 9.20%
------------------------------------
10-Year 8.33% 7.64%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 31.9%
------------------------------------
Tax Obligation/General 17.8%
------------------------------------
Water and Sewer 17.3%
------------------------------------
U.S. Guaranteed 9.1%
------------------------------------
Utilities 8.2%
------------------------------------
Education and Civic
Organizations 7.8%
------------------------------------
Other 7.9%
------------------------------------
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34.5%. For investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
13
Nuveen California Premium Income Municipal Fund
NCU
Performance
OVERVIEW As of February 28, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 60%
AA 7%
A 14%
BBB 13%
BB or Lower 5%
NR 1%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Mar 0.073
Apr 0.073
May 0.073
Jun 0.073
Jul 0.073
Aug 0.073
Sep 0.073
Oct 0.073
Nov 0.073
Dec 0.073
Jan 0.073
Feb 0.073
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
3/1/04 13.89
13.9
13.93
13.9
14.03
14.01
14
14.07
14.04
14.1
14.12
14.15
14.11
14.11
14.11
14.12
14.1
14.07
14.08
14.02
14.01
14.02
14.02
14.07
14.07
13.95
13.71
13.6
13.6
13.6
13.13
12.92
12.87
12.92
13.05
13.22
13.19
13.09
12.87
12.8
12.74
12.63
12.74
12.75
12.97
12.78
12.78
12.65
12.37
12.51
12.4
12.24
11.95
12.17
12.01
12.05
11.98
12.19
12.18
12.24
12.45
12.79
12.93
12.99
12.99
12.65
12.62
12.84
12.65
12.66
12.85
12.6
12.51
12.32
12.45
12.46
12.34
12.6
12.54
12.5
12.5
12.54
12.52
12.54
12.56
12.62
12.59
12.8
12.8
12.75
12.8
12.81
12.87
12.75
12.77
12.71
12.8
12.8
12.79
12.79
12.79
12.84
12.89
12.9
12.95
13.02
13.14
13.14
13.26
13.25
13.25
13.13
13.18
13.15
13.14
13.19
13.18
13.23
13.25
13.34
13.33
13.28
13.36
13.27
13.5
13.28
13.48
13.67
13.85
13.67
13.7
13.67
13.55
13.6
13.7
13.53
13.62
13.7
13.81
13.73
13.88
13.93
13.85
13.94
13.95
13.95
13.9
13.95
14.22
14.1
14
13.82
13.75
13.88
13.85
13.8
13.85
13.99
14
14.02
13.92
14.05
14
13.94
13.94
14.01
14.1
13.95
13.85
13.9
13.91
13.9
13.9
13.9
13.92
13.91
13.84
13.55
13.34
13.36
13.3
13.38
13.42
13.5
13.6
13.65
13.6
13.55
13.6
13.5
13.6
13.65
13.65
13.7
13.59
13.51
13.52
13.61
13.56
13.5
13.63
13.73
13.58
13.5
13.54
13.42
13.31
13.3
13.279
13.32
13.31
13.27
13.1
13.18
13.14
13.18
13.22
13.33
13.38
13.44
13.42
13.49
13.5
13.4
13.43
13.54
13.53
13.53
13.48
13.71
14.25
14.13
14.18
13.9
14.03
14.02
13.83
13.78
13.75
13.83
14.1
14.05
14.06
14.03
13.93
14.3
14.3
14.17
14
13.96
14
14.35
14.15
14.21
2/28/05 14.2
FUND SNAPSHOT
------------------------------------
Share Price $14.20
------------------------------------
Common Share
Net Asset Value $14.81
------------------------------------
Premium/(Discount) to NAV -4.12%
------------------------------------
Market Yield 6.17%
------------------------------------
Taxable-Equivalent Yield1 9.42%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $85,499
------------------------------------
Average Effective
Maturity on Securities (Years) 17.15
------------------------------------
Leverage-Adjusted Duration 9.69
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 6/18/93)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 7.20% 5.14%
------------------------------------
1-Year 9.19% 5.89%
------------------------------------
5-Year 9.11% 9.99%
------------------------------------
10-Year 8.56% 8.18%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 31.0%
------------------------------------
Tax Obligation/General 18.2%
------------------------------------
Healthcare 14.7%
------------------------------------
Water and Sewer 11.5%
------------------------------------
Utilities 7.6%
------------------------------------
Transportation 5.6%
------------------------------------
U.S. Guaranteed 4.2%
------------------------------------
Other 7.2%
------------------------------------
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34.5%. For investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
14
Nuveen California Dividend Advantage Municipal Fund
NAC
Performance
OVERVIEW As of February 28, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 54%
AA 8%
A 15%
BBB 14%
NR 9%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Mar 0.082
Apr 0.082
May 0.082
Jun 0.082
Jul 0.082
Aug 0.082
Sep 0.082
Oct 0.082
Nov 0.082
Dec 0.082
Jan 0.082
Feb 0.082
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
3/1/04 15.26
15.32
15.28
15.3
15.45
15.45
15.62
15.65
15.66
15.63
15.55
15.45
15.52
15.58
15.62
15.56
15.55
15.57
15.53
15.42
15.4
15.38
15.49
15.5
15.3
15.15
14.92
14.93
14.92
14.77
14.52
14.4
14.18
14.38
14.4
14.35
14.24
14.26
14.23
14.08
14
14
13.95
14.13
14
13.9
13.82
13.8
13.55
13.3
13.46
13.26
13.12
13.22
13.25
13.18
13.19
13.43
13.53
13.55
13.6
13.8
13.95
14.16
14.16
14.11
14.08
14.02
14.08
14.13
14.11
14.02
13.97
13.94
14
14.05
13.97
13.93
13.99
14.07
13.9
14
13.91
13.93
13.97
13.98
14.08
14.23
14.22
14.12
14.17
14.2
14.22
14.19
14.21
14.18
14.25
14.24
14.22
14.2
14.1
14.09
14.08
14.06
14.15
14.27
14.35
14.35
14.45
14.59
14.61
14.54
14.61
14.67
14.65
14.68
14.65
14.65
14.64
14.66
14.71
14.75
14.84
14.79
14.7
14.79
14.8
14.87
14.87
15
15.06
14.98
14.92
15.02
15.09
15
15.14
15.02
14.96
14.94
14.95
14.98
14.99
14.97
15.04
15.04
15.04
15
15
15.04
14.96
14.81
14.85
14.91
14.9
14.9
14.99
15.05
15.05
15
15.01
15.05
15.12
15.18
15.24
15.19
15.27
15.28
15.27
15.31
15.27
15.32
15.32
15.47
15.4
15.5
15.48
15.23
14.89
15.04
14.96
15.12
15.14
15.14
15.17
15.18
15.28
15.05
15.11
15.09
15
14.98
14.9
14.76
14.75
14.7
14.81
14.82
14.81
14.89
14.83
14.83
14.83
14.86
14.9
14.86
14.95
14.93
14.85
14.84
14.83
14.76
14.9
14.84
14.89
14.9
14.9
14.82
14.75
14.81
14.88
14.76
14.75
14.57
14.46
14.4
14.5
14.53
14.59
14.57
14.53
14.61
14.52
14.61
14.69
14.74
14.8
14.89
14.98
15.07
15.19
15.15
15.23
15.21
15.11
15.2
15.04
14.98
15
14.83
14.79
14.82
14.9
15.06
2/28/05 15.01
FUND SNAPSHOT
------------------------------------
Share Price $15.01
------------------------------------
Common Share
Net Asset Value $15.78
------------------------------------
Premium/(Discount) to NAV -4.88%
------------------------------------
Market Yield 6.56%
------------------------------------
Taxable-Equivalent Yield1 10.02%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $369,416
------------------------------------
Average Effective
Maturity on Securities (Years) 18.78
------------------------------------
Leverage-Adjusted Duration 7.87
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 5/26/99)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 3.71% 4.74%
------------------------------------
1-Year 5.52% 5.27%
------------------------------------
5-Year 10.18% 11.85%
------------------------------------
Since
Inception 6.46% 8.06%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 27.4%
------------------------------------
Tax Obligation/General 15.3%
------------------------------------
Transportation 13.6%
------------------------------------
Utilities 7.9%
------------------------------------
Healthcare 7.8%
------------------------------------
Water and Sewer 7.7%
------------------------------------
Education and Civic
Organizations 7.1%
------------------------------------
Housing/Multifamily 4.9%
------------------------------------
Other 8.3%
------------------------------------
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34.5%. For investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
2 The Fund also paid shareholders a capital gains distribution in December
2004 of $0.0464 per share.
15
Nuveen California Dividend Advantage Municipal Fund 2
NVX
Performance
OVERVIEW As of February 28, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 69%
AA 1%
A 12%
BBB 12%
NR 6%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Mar 0.076
Apr 0.076
May 0.076
Jun 0.076
Jul 0.076
Aug 0.076
Sep 0.076
Oct 0.076
Nov 0.076
Dec 0.076
Jan 0.076
Feb 0.076
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
3/1/04 14.29
14.38
14.27
14.3
14.35
14.56
14.57
14.75
14.54
14.52
14.6
14.56
14.56
14.55
14.53
14.66
14.52
14.6
14.52
14.49
14.35
14.35
14.36
14.36
14.19
13.97
13.87
14
13.95
13.75
13.4
13.57
13.29
13.35
13.4
13.26
13.06
13.1
13.06
12.98
12.97
12.89
12.92
12.92
12.89
12.76
12.8
12.74
12.61
12.34
12.49
12.39
12.25
12.41
12.25
12.46
12.59
12.64
12.75
12.69
12.81
12.9
13.08
13.05
13.05
13.07
13.05
13.1
13.09
12.98
13.05
13.05
12.99
12.92
13.1
12.84
12.89
12.96
12.99
13.09
13
13.06
13.14
13.1
13.1
13.05
13.09
13.42
13.33
13.3
13.3
13.35
13.4
13.38
13.28
13.22
13.37
13.45
13.25
13.25
13.24
13.3
13.33
13.31
13.38
13.37
13.4
13.4
13.46
13.52
13.56
13.59
13.68
13.9
13.69
13.6
13.57
13.65
13.65
13.63
13.7
13.65
13.88
13.77
13.9
13.98
13.99
13.93
14.03
14.08
14.15
14.12
14
14
14.09
14.13
14.2
14.01
13.98
13.97
13.95
14.02
14
14.01
13.99
14.14
14.03
14.11
14.17
14.08
14.05
13.95
13.95
13.95
13.9
13.9
14.04
14.09
14.03
14.04
14.04
14.05
14.04
14.12
14.11
14.13
14.16
14.19
14.16
14.06
14.04
14.08
14.08
14.11
14.18
14.25
14.22
14.04
13.65
13.7
13.65
13.74
13.76
14.03
14.06
14.1
14.04
13.96
14.08
13.94
13.96
13.99
13.87
13.72
13.66
13.62
13.68
13.76
13.76
13.79
13.73
13.84
13.69
13.69
13.7
13.6
13.72
13.54
13.55
13.66
13.57
13.44
13.41
13.45
13.46
13.45
13.58
13.62
13.61
13.62
13.67
13.7
13.74
13.63
13.66
13.65
13.8
13.71
13.77
13.8
13.83
13.95
13.96
13.917
14.05
14.13
14.1
14.1
14.18
14.17
14.24
14.24
14.35
14.3
14.35
14.15
14.17
14.21
14.11
13.99
13.9
14.01
14
14.12
2/28/05 14.09
FUND SNAPSHOT
------------------------------------
Share Price $14.09
------------------------------------
Common Share
Net Asset Value $15.31
------------------------------------
Premium/(Discount) to NAV -7.97%
------------------------------------
Market Yield 6.47%
------------------------------------
Taxable-Equivalent Yield1 9.88%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $226,385
------------------------------------
Average Effective
Maturity on Securities (Years) 17.81
------------------------------------
Leverage-Adjusted Duration 8.93
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/27/01)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 3.38% 5.38%
------------------------------------
1-Year 5.13% 5.67%
------------------------------------
Since
Inception 4.74% 7.92%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 30.1%
------------------------------------
Tax Obligation/General 19.8%
------------------------------------
Education and Civic
Organizations 10.2%
------------------------------------
Water and Sewer 9.3%
------------------------------------
Transportation 6.1%
------------------------------------
Utilities 6.0%
------------------------------------
Healthcare 5.8%
------------------------------------
Housing/Multifamily 5.0%
------------------------------------
Other 7.7%
------------------------------------
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34.5%. For investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
16
Nuveen California Dividend Advantage Municipal Fund 3
NZH
Performance
OVERVIEW As of February 28, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 61%
AA 4%
A 15%
BBB 13%
NR 7%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Mar 0.076
Apr 0.076
May 0.076
Jun 0.076
Jul 0.076
Aug 0.076
Sep 0.076
Oct 0.076
Nov 0.076
Dec 0.076
Jan 0.076
Feb 0.076
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
3/1/04 13.68
13.69
13.74
13.71
13.77
13.84
13.9
13.95
13.92
13.9
13.97
13.95
13.97
13.88
13.87
13.95
13.96
14.01
13.92
13.93
13.79
13.75
13.78
13.82
13.58
13.29
13.25
13.35
13.26
13.19
13
12.9
12.77
12.86
12.77
12.79
12.71
12.63
12.51
12.49
12.52
12.53
12.43
12.53
12.43
12.49
12.41
12.29
12.09
11.95
12.07
11.98
11.88
12.04
11.97
12.05
12.11
12.18
12.25
12.38
12.41
12.49
12.56
12.44
12.44
12.47
12.41
12.42
12.33
12.34
12.41
12.41
12.3
12.51
12.51
12.46
12.3
12.26
12.32
12.27
12.27
12.35
12.46
12.36
12.41
12.38
12.55
12.65
12.62
12.64
12.66
12.65
12.76
12.67
12.66
12.57
12.66
12.7
12.61
12.62
12.67
12.69
12.7
12.66
12.68
12.69
12.77
12.77
12.87
12.9
12.87
12.95
13.07
13.05
13.06
12.96
12.91
13.01
13.02
13.06
13.1
13.14
13.16
13.15
13.15
13.17
13.22
13.27
13.31
13.33
13.4
13.35
13.34
13.34
13.35
13.25
13.35
13.25
13.25
13.27
13.4
13.4
13.48
13.51
13.45
13.55
13.5
13.5
13.5
13.51
13.42
13.4
13.43
13.46
13.4
13.47
13.51
13.54
13.44
13.37
13.42
13.46
13.43
13.41
13.5
13.5
13.48
13.55
13.58
13.51
13.59
13.68
13.68
13.75
13.83
13.74
13.78
13.47
13.3
13.33
13.26
13.31
13.36
13.35
13.35
13.42
13.44
13.44
13.34
13.27
13.26
13.25
13.2
13.21
13.15
13.04
13.18
13.23
13.25
13.35
13.23
13.34
13.19
13.19
13.27
13.15
13.17
13.15
13.12
13.1
13.09
13.02
13.05
13.05
13.14
13.14
13.18
13.15
13.17
13.23
13.32
13.36
13.42
13.34
13.35
13.31
13.37
13.42
13.4
13.5
13.5
13.46
13.62
13.65
13.7
13.74
13.78
13.8
13.8
13.76
13.89
13.88
13.84
13.87
13.79
13.8
13.79
13.72
13.67
13.5
13.45
13.5
13.53
13.63
2/28/05 13.65
FUND SNAPSHOT
------------------------------------
Share Price $13.65
------------------------------------
Common Share
Net Asset Value $14.96
------------------------------------
Premium/(Discount) to NAV -8.76%
------------------------------------
Market Yield 6.33%
------------------------------------
Taxable-Equivalent Yield1 9.66%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $360,724
------------------------------------
Average Effective
Maturity on Securities (Years) 17.86
------------------------------------
Leverage-Adjusted Duration 9.37
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 9/25/01)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 5.73% 5.12%
------------------------------------
1-Year 6.36% 5.46%
------------------------------------
Since
Inception 3.54% 7.37%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 29.7%
------------------------------------
Tax Obligation/General 20.6%
------------------------------------
Water and Sewer 9.2%
------------------------------------
Utilities 8.7%
------------------------------------
Healthcare 8.3%
------------------------------------
Transportation 6.2%
------------------------------------
Housing/Multifamily 5.8%
------------------------------------
Education and Civic
Organizations 5.1%
------------------------------------
Other 6.4%
------------------------------------
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34.5%. For investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
17
Nuveen Insured California Dividend Advantage Municipal Fund
NKL
Performance
OVERVIEW As of February 28, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
Insured 80%
AAA (Uninsured) 1%
AA (Uninsured) 3%
A (Uninsured) 10%
BBB (Uninsured) 6%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Mar 0.076
Apr 0.076
May 0.076
Jun 0.076
Jul 0.076
Aug 0.076
Sep 0.076
Oct 0.076
Nov 0.076
Dec 0.076
Jan 0.076
Feb 0.076
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
3/1/04 15.15
15.16
15.1
15.3
15.25
15.3
15.31
15.25
15.1
15.1
15.15
15.25
15.2
15.2
15.11
15.18
15.17
15.19
15.11
15.25
15.18
15.3
15.28
15.19
15
14.72
14.5
14.41
14.42
14.52
14.05
13.97
13.66
13.85
13.9
13.8
13.52
13.53
13.48
13.34
13.43
13.32
13.25
13.38
13.56
13.6
13.46
13.46
13.29
12.93
13.15
13.07
13.04
13.23
13.1
13.14
13.06
13.18
13.21
13.35
13.29
13.4
13.4
13.59
13.59
13.51
13.39
13.41
13.4
13.58
13.6
13.4
13.4
13.21
13.16
13.26
13.16
13.17
13.13
13.12
13.09
13.2
13.25
13.12
13.15
13.25
13.33
13.5
13.64
13.63
13.89
13.8
13.98
13.87
13.84
13.83
13.93
14.15
13.98
13.75
13.73
13.85
13.81
13.81
13.84
13.84
13.95
13.95
14.04
14.04
14.2
14.1
14.2
14.04
14.1
14.06
14.14
14.21
14.25
14.15
14.26
14.26
14.2
14.38
14.4
14.48
14.45
14.62
14.69
14.67
14.69
14.67
14.47
14.47
14.51
14.6
14.8
14.65
14.65
14.66
14.71
14.69
14.92
14.76
14.92
14.86
14.75
14.86
14.9
14.85
14.8
14.68
14.77
14.74
14.71
14.65
14.69
14.85
14.95
14.86
14.68
14.66
14.61
14.65
14.77
14.76
14.75
14.85
14.89
14.85
14.73
14.71
14.71
14.75
14.9
14.77
14.78
14.4
14.25
14.42
14.38
14.29
14.38
14.38
14.5
14.54
14.75
14.47
14.55
14.84
14.75
14.75
14.58
14.28
14.55
14.24
14.34
14.5
14.48
14.71
14.7
14.75
14.26
14.24
14.3
14.29
14.17
14.17
14.26
14.37
14.27
14.37
14.29
14.39
14.4
14.32
14.4
14.45
14.54
14.62
14.84
14.68
14.7
14.58
14.51
14.4
14.75
14.65
14.7
14.75
14.84
14.84
14.83
15
14.83
14.98
14.88
14.97
14.69
14.8
14.7
14.72
14.8
14.75
14.64
14.78
14.77
14.75
14.76
14.53
14.45
14.4
14.5
14.6
2/28/05 14.61
FUND SNAPSHOT
------------------------------------
Share Price $14.61
------------------------------------
Common Share
Net Asset Value $15.57
------------------------------------
Premium/(Discount) to NAV -6.17%
------------------------------------
Market Yield 6.24%
------------------------------------
Taxable-Equivalent Yield1 9.53%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $237,559
------------------------------------
Average Effective
Maturity on Securities (Years) 20.37
------------------------------------
Leverage-Adjusted Duration 7.27
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/25/02)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 3.07% 4.79%
------------------------------------
1-Year 3.01% 4.60%
------------------------------------
Since
Inception 5.79% 9.53%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 28.2%
------------------------------------
Tax Obligation/General 23.9%
------------------------------------
Utilities 13.1%
------------------------------------
Water and Sewer 11.3%
------------------------------------
Education and Civic
Organizations 6.1%
------------------------------------
Healthcare 5.4%
------------------------------------
Transportation 3.8%
------------------------------------
Other 8.2%
------------------------------------
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34.5%. For investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2004 of $0.0498 per share.
18
Nuveen Insured California Tax-Free Advantage Municipal Fund
NKX
Performance
OVERVIEW As of February 28, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
Insured 82%
A (Uninsured) 12%
BBB (Uninsured) 6%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Mar 0.0755
Apr 0.0755
May 0.0755
Jun 0.0755
Jul 0.0755
Aug 0.0755
Sep 0.0755
Oct 0.0755
Nov 0.0755
Dec 0.0725
Jan 0.0725
Feb 0.0725
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
3/1/04 15.05
15.04
14.99
14.93
15.08
15.12
15.05
15.05
14.96
15
15
14.9
14.95
15
14.78
14.84
14.9
14.91
14.83
14.96
14.99
14.94
15
15.02
14.94
14.7
14.45
14.49
14.52
14.24
13.7
13.6
13.59
13.55
13.75
13.75
13.62
13.51
13.43
13.42
13.49
13.45
13.35
13.42
13.58
13.66
13.85
13.6
13.49
13.29
13.15
13.08
13.1
13.01
12.8
12.9
13.03
13
13.01
13.1
13.33
13.29
13.4
13.4
13.4
13.51
13.41
13.42
13.42
13.38
13.38
13.11
13.15
13.07
13.1
12.94
12.98
12.99
12.92
12.92
12.85
12.93
12.94
12.99
12.92
12.96
13.25
13.25
13.38
13.42
13.49
13.49
13.59
13.42
13.5
13.4
13.5
13.6
13.53
13.39
13.5
13.62
13.58
13.55
13.46
13.6
13.6
13.6
13.65
13.7
13.75
13.85
13.88
13.75
13.89
13.79
13.81
13.81
13.81
13.87
13.8
13.87
13.89
13.97
14.05
14.11
14.1
14.15
14.15
14.19
14.25
14.33
14.35
14.45
14.35
14.43
14.35
14.45
14.47
14.4
14.44
14.55
14.75
14.82
14.75
14.67
14.7
14.69
14.75
14.79
14.7
14.55
14.5
14.52
14.45
14.45
14.35
14.5
14.55
14.49
14.4
14.35
14.32
14.28
14.38
14.29
14.17
14.16
14.31
14.31
14.51
14.79
14.79
14.51
14.62
14.51
14.64
14.57
14.4
14.35
14.04
14.08
14.14
14.1
14.08
14.22
14.25
14.27
14.22
14.32
14.74
14.5
14.39
14.11
14.19
14.37
14.25
14.27
14.18
14.12
14.13
14.14
14.01
14.01
13.9
13.86
13.76
13.84
13.81
14.35
14.34
14.25
14.13
14
14.21
14.4
14.4
14.46
14.45
14.5
14.32
14.34
14.37
14.4
14.6
14.62
14.5
14.62
14.64
14.63
14.63
14.59
14.57
14.52
14.54
14.61
14.61
14.67
14.67
14.61
14.61
14.77
14.72
14.72
14.58
14.53
14.63
14.79
14.57
14.59
14.66
14.65
14.69
14.77
2/28/05 14.74
FUND SNAPSHOT
------------------------------------
Share Price $14.74
------------------------------------
Common Share
Net Asset Value $14.92
------------------------------------
Premium/(Discount) to NAV -1.21%
------------------------------------
Market Yield 5.90%
------------------------------------
Taxable-Equivalent Yield1 9.01%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $87,764
------------------------------------
Average Effective
Maturity on Securities (Years) 20.72
------------------------------------
Leverage-Adjusted Duration 7.50
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/21/02)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 7.09% 5.15%
------------------------------------
1-Year 4.40% 4.86%
------------------------------------
Since
Inception 5.33% 7.98%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/General 31.6%
------------------------------------
Tax Obligation/Limited 30.2%
------------------------------------
Healthcare 12.5%
------------------------------------
Transportation 9.3%
------------------------------------
Water and Sewer 7.6%
------------------------------------
Other 8.8%
------------------------------------
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34.5%. For investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
19
Shareholder
MEETING REPORT
The Shareholder Meeting was held in San Francisco, California, on November 17,
2004.
NPC NCL NCU
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS:
Common and Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting shares voting shares voting
together together together together together together
as a class as a class as a class as a class as a class as a class
====================================================================================================================================
Robert P. Bremner
For 5,850,554 -- 11,783,304 -- 5,394,682 --
Withhold 16,436 -- 28,627 -- 10,332 --
------------------------------------------------------------------------------------------------------------------------------------
Total 5,866,990 -- 11,811,931 -- 5,405,014 --
====================================================================================================================================
Lawrence H. Brown
For 5,848,737 -- 11,777,804 -- 5,391,502 --
Withhold 18,253 -- 34,127 -- 13,512 --
------------------------------------------------------------------------------------------------------------------------------------
Total 5,866,990 -- 11,811,931 -- 5,405,014 --
====================================================================================================================================
Jack B. Evans
For 5,850,554 -- 11,783,971 -- 5,394,682 --
Withhold 16,436 -- 27,960 -- 10,332 --
------------------------------------------------------------------------------------------------------------------------------------
Total 5,866,990 -- 11,811,931 -- 5,405,014 --
====================================================================================================================================
William C. Hunter
For 5,850,554 -- 11,778,471 -- 5,391,182 --
Withhold 16,436 -- 33,460 -- 13,832 --
------------------------------------------------------------------------------------------------------------------------------------
Total 5,866,990 -- 11,811,931 -- 5,405,014 --
====================================================================================================================================
William J. Schneider
For -- 1,415 -- 3,446 -- 1,580
Withhold -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,415 -- 3,446 -- 1,580
====================================================================================================================================
Timothy R. Schwertfeger
For -- 1,415 -- 3,446 -- 1,580
Withhold -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,415 -- 3,446 -- 1,580
====================================================================================================================================
Judith M. Stockdale
For 5,849,337 -- 11,778,471 -- 5,386,875 --
Withhold 17,653 -- 33,460 -- 18,139 --
------------------------------------------------------------------------------------------------------------------------------------
Total 5,866,990 -- 11,811,931 -- 5,405,014 --
====================================================================================================================================
20
NAC NVX NZH
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS:
Common and Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting shares voting shares voting
together together together together together together
as a class as a class as a class as a class as a class as a class
====================================================================================================================================
Robert P. Bremner
For 22,378,628 -- 14,272,591 -- 23,545,113 --
Withhold 74,231 -- 31,559 -- 95,209 --
------------------------------------------------------------------------------------------------------------------------------------
Total 22,452,859 -- 14,304,150 -- 23,640,322 --
====================================================================================================================================
Lawrence H. Brown
For 22,372,628 -- 14,272,166 -- 23,545,113 --
Withhold 80,231 -- 31,984 -- 95,209 --
------------------------------------------------------------------------------------------------------------------------------------
Total 22,452,859 -- 14,304,150 -- 23,640,322 --
====================================================================================================================================
Jack B. Evans
For 22,378,628 -- 14,270,017 -- 23,542,540 --
Withhold 74,231 -- 34,133 -- 97,782 --
------------------------------------------------------------------------------------------------------------------------------------
Total 22,452,859 -- 14,304,150 -- 23,640,322 --
====================================================================================================================================
William C. Hunter
For 22,372,628 -- 14,271,517 -- 23,544,040 --
Withhold 80,231 -- 32,633 -- 96,282 --
------------------------------------------------------------------------------------------------------------------------------------
Total 22,452,859 -- 14,304,150 -- 23,640,322 --
====================================================================================================================================
William J. Schneider
For -- 6,750 -- 4,175 -- 7,271
Withhold -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 6,750 -- 4,175 -- 7,271
====================================================================================================================================
Timothy R. Schwertfeger
For -- 6,750 -- 4,175 -- 7,271
Withhold -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 6,750 -- 4,175 -- 7,271
====================================================================================================================================
Judith M. Stockdale
For 22,372,628 -- 14,271,517 -- 23,544,040 --
Withhold 80,231 -- 32,633 -- 96,282 --
------------------------------------------------------------------------------------------------------------------------------------
Total 22,452,859 -- 14,304,150 -- 23,640,322 --
====================================================================================================================================
21
Shareholder
MEETING REPORT (continued)
NKL NKX
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS:
Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting
together together together together
as a class as a class as a class as a class
====================================================================================================================================
Robert P. Bremner
For 14,999,395 -- 5,729,225 --
Withhold 63,592 -- 16,323 --
------------------------------------------------------------------------------------------------------------------------------------
Total 15,062,987 -- 5,745,548 --
====================================================================================================================================
Lawrence H. Brown
For 14,999,395 -- 5,729,225 --
Withhold 63,592 -- 16,323 --
------------------------------------------------------------------------------------------------------------------------------------
Total 15,062,987 -- 5,745,548 --
====================================================================================================================================
Jack B. Evans
For 14,999,395 -- 5,729,025 --
Withhold 63,592 -- 16,523 --
------------------------------------------------------------------------------------------------------------------------------------
Total 15,062,987 -- 5,745,548 --
====================================================================================================================================
William C. Hunter
For 14,999,395 -- 5,729,225 --
Withhold 63,592 -- 16,323 --
------------------------------------------------------------------------------------------------------------------------------------
Total 15,062,987 -- 5,745,548 --
====================================================================================================================================
William J. Schneider
For -- 4,489 -- 1,728
Withhold -- 12 -- 10
------------------------------------------------------------------------------------------------------------------------------------
Total -- 4,501 -- 1,738
====================================================================================================================================
Timothy R. Schwertfeger
For -- 4,489 -- 1,728
Withhold -- 12 -- 10
------------------------------------------------------------------------------------------------------------------------------------
Total -- 4,501 -- 1,738
====================================================================================================================================
Judith M. Stockdale
For 14,999,395 -- 5,728,925 --
Withhold 63,592 -- 16,623 --
------------------------------------------------------------------------------------------------------------------------------------
Total 15,062,987 -- 5,745,548 --
====================================================================================================================================
22
Nuveen Insured California Premium Income Municipal Fund, Inc. (NPC)
Portfolio of
INVESTMENTS February 28, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 8.8% (6.2% OF TOTAL INVESTMENTS)
$ 2,000 California Educational Facilities Authority, Revenue Bonds, 9/06 at 102.00 AAA $ 2,125,520
Santa Clara University, Series 1996, 5.750%, 9/01/26 -
MBIA Insured
2,125 California Educational Facilities Authority, Student Loan Revenue 3/08 at 102.00 Aaa 2,235,457
Bonds, Cal Loan Program, Series 2001A, 5.400%, 3/01/21
(Alternative Minimum Tax) - MBIA Insured
2,500 California State University, Systemwide Revenue Bonds, 5/14 at 100.00 AAA 2,697,250
Series 2004A, 5.000%, 11/01/18 - FSA Insured
2,000 University of California, Revenue Bonds, Multi-Purpose Projects, 9/10 at 101.00 AAA 2,082,480
Series 2002O, 5.125%, 9/01/31 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 4.7% (3.3% OF TOTAL INVESTMENTS)
3,000 California Health Facilities Financing Authority, Insured 8/08 at 101.00 AAA 3,211,590
Revenue Bonds, Sutter Health, Series 1998A,
5.375%, 8/15/30 - MBIA Insured
1,500 California Statewide Community Development Authority, 8/09 at 101.00 AAA 1,649,850
Certificates of Participation, Sutter Health Obligated Group,
Series 1999, 5.500%, 8/15/19 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.3% (0.2% OF TOTAL INVESTMENTS)
305 California Housing Finance Agency, Single Family Mortgage 2/07 at 102.00 AAA 318,615
Bonds II, Series 1997A-1, 6.000%, 8/01/20 (Alternative
Minimum Tax) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 41.3% (29.0% OF TOTAL INVESTMENTS)
Bonita Unified School District, San Diego County, California,
General Obligation Bonds, Series 2004A:
1,890 5.250%, 8/01/23 - MBIA Insured 8/14 at 100.00 AAA 2,057,662
1,250 5.250%, 8/01/25 - MBIA Insured 8/14 at 100.00 AAA 1,353,775
California, Various Purpose General Obligation Bonds,
Series 2000:
7,995 5.750%, 3/01/22 - MBIA Insured 3/10 at 101.00 AAA 8,892,119
2,000 5.750%, 3/01/27 - MBIA Insured 3/10 at 101.00 AAA 2,217,020
2,000 California, General Obligation Veterans Welfare Bonds, 6/07 at 101.00 AAA 2,039,880
Series 2001BZ, 5.375%, 12/01/24 (Alternative Minimum
Tax) - MBIA Insured
El Segundo Unified School District, Los Angeles County,
California, General Obligation Bonds, Series 2004:
2,580 5.250%, 9/01/21 - FGIC Insured 9/14 at 100.00 AAA 2,829,770
1,775 5.250%, 9/01/22 - FGIC Insured 9/14 at 100.00 AAA 1,940,962
1,225 Fresno Unified School District, Fresno County, California, 2/13 at 103.00 AAA 1,488,461
General Obligation Refunding Bonds, Series 1998A,
6.550%, 8/01/20 - MBIA Insured
1,180 Jurupa Unified School District, Riverside County, California, 8/13 at 100.00 AAA 1,256,712
General Obligation Bonds, Series 2004, 5.000%, 8/01/21 -
FGIC Insured
2,000 Los Angeles Unified School District, California, General 7/08 at 102.00 AAA 2,115,280
Obligation Bonds, Series 1997A, 5.000%, 7/01/21 -
FGIC Insured
3,000 Pomona Unified School District, Los Angeles County, 8/11 at 103.00 AAA 3,604,110
California, General Obligation Refunding Bonds, Series 1997A,
6.500%, 8/01/19 - MBIA Insured
San Diego Unified School District, San Diego County, California,
General Obligation Bonds, Election of 1998, Series 2001C:
1,335 5.000%, 7/01/21 - FSA Insured 7/11 at 102.00 AAA 1,419,866
3,500 5.000%, 7/01/22 - FSA Insured 7/11 at 102.00 AAA 3,705,240
4,895 5.000%, 7/01/23 - FSA Insured 7/11 at 102.00 AAA 5,161,190
2,525 San Joaquin Delta Community College District, California, 8/15 at 100.00 AAA 2,647,261
General Obligation Bonds, Series 2005A, 5.000%, 8/01/29 -
FSA Insured
23
Nuveen Insured California Premium Income Municipal Fund, Inc. (NPC) (continued)
Portfolio of INVESTMENTS February 28, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 22.3% (15.7% OF TOTAL INVESTMENTS)
$ 1,000 Brea and Olinda Unified School District, Orange County, 8/11 at 101.00 AAA $ 1,048,370
California, Certificates of Participation Refunding,
Series 2002A, 5.125%, 8/01/26 - FSA Insured
California Infrastructure 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 AAA 1,297,013
1,615 5.000%, 12/01/21 - AMBAC Insured 12/13 at 100.00 AAA 1,711,803
2,000 California State Public Works Board, Lease Revenue Bonds, 11/09 at 101.00 AAA 2,221,300
Department of Health Services, Series 1999A,
5.750%, 11/01/24 - MBIA Insured
1,900 Corona-Norco Unified School District, Riverside County, 9/12 at 100.00 AAA 2,019,947
California, Special Tax Bonds, Community Facilities
District 98-1, Series 2002, 5.100%, 9/01/25 - AMBAC Insured
5,000 El Monte, California, Senior Lien Certificates of Participation, 1/11 at 100.00 AAA 5,228,350
Department of Public Services Facility Phase II, Series 2001,
5.250%, 1/01/34 - AMBAC Insured
1,400 Indian Wells Redevelopment Agency, California, Tax Allocation 9/13 at 100.00 AAA 1,489,208
Bonds, Consolidated Whitewater Project Area, Series 2003A,
5.000%, 9/01/20 - AMBAC Insured
895 Los Angeles Community Redevelopment Agency, California, 12/14 at 100.00 AAA 958,822
Tax Allocation Bonds, Bunker Hill Project, Series 2004A,
5.000%, 12/01/20 - FSA Insured
1,000 Los Angeles County Metropolitan Transportation Authority, 7/13 at 100.00 AAA 1,073,580
California, Proposition A First Tier Senior Sales Tax Revenue
Bonds, Series 2003B, 5.000%, 7/01/19 - MBIA Insured
3,000 Santa Clara County Financing Authority, California, Lease 11/07 at 102.00 AAA 3,175,620
Revenue Bonds, VMC Facility Replacement Project,
Series 1994A, 5.000%, 11/15/22 - AMBAC Insured
2,805 Yucaipa-Calimesa Joint Unified School District, 10/11 at 100.00 AAA 2,883,316
San Bernardino County, California, General Obligation
Refunding Bonds, Series 2001A, 5.000%, 10/01/31 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 3.4% (2.4% OF TOTAL INVESTMENTS)
3,400 San Diego Unified Port District, California, Revenue Bonds, 9/14 at 100.00 AAA 3,545,010
Series 2004B, 5.000%, 9/01/29 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 30.8% (21.6% OF TOTAL INVESTMENTS)
2,500 Fresno Unified School District, Fresno County, California, 8/09 at 102.00 AAA 2,684,300
General Obligation Bonds, Series 2001A, 5.125%, 8/01/26 -
FSA Insured
6,000 Huntington Park Redevelopment Agency, California, No Opt. Call AAA 8,684,760
Single Family Residential Mortgage Revenue Refunding
Bonds, Series 1986A, 8.000%, 12/01/19
5,135 Palmdale Community Redevelopment Agency, California, No Opt. Call AAA 7,001,932
Single Family Restructured Mortgage Revenue Bonds,
Series 1986A, 8.000%, 3/01/16 (Alternative Minimum Tax)
6,220 Riverside County, California, GNMA Mortgage-Backed No Opt. Call AAA 9,500,926
Securities Program Single Family Mortgage Revenue Bonds,
Series 1987A, 9.000%, 5/01/21 (Alternative Minimum Tax)
1,485 San Jose, California, Single Family Mortgage Revenue Bonds, No Opt. Call AAA 2,113,883
Series 1985A, 9.500%, 10/01/13
1,800 University of California, Hospital Revenue Bonds, Davis 7/06 at 101.00 AAA 1,896,138
Medical Center, Series 1996, 5.750%, 7/01/24 (Pre-refunded
to 7/01/06) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 6.7% (4.7% OF TOTAL INVESTMENTS)
4,000 California Pollution Control Financing Authority, Revenue 6/05 at 100.00 AAA 4,012,360
Bonds, Southern California Edison Company, Series 1992B,
6.400%, 12/01/24 (Alternative Minimum Tax) - MBIA Insured
2,600 Sacramento Municipal Utility District, California, Electric No Opt. Call AAA 2,882,360
Revenue Refunding Bonds, Series 2003S, 5.000%, 11/15/13 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 22.9% (16.1% OF TOTAL INVESTMENTS)
5,255 El Dorado Irrigation District, California, Water and Sewer 3/13 at 100.00 AAA 5,573,243
Certificates of Participation, Series 2003A, 5.000%, 3/01/20 -
FGIC Insured
1,230 El Dorado Irrigation District, California, Water and Sewer 3/14 at 100.00 AAA 1,305,534
Certificates of Participation, Series 2004A, 5.000%, 3/01/21 -
FGIC Insured
2,000 Los Angeles, California, Wastewater System Revenue Bonds, 5/05 at 101.00 AAA 2,007,820
Series 1993D, 4.700%, 11/01/19 - FGIC Insured
24
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 750 Sacramento County Sanitation District Financing Authority, 12/14 at 100.00 AAA $ 802,860
California, Revenue Bonds, Series 2004A, 5.000%, 12/01/21 -
AMBAC Insured
3,400 San Diego Public Facilities Financing Authority, California, 5/07 at 101.00 AAA 3,587,306
Sewerage Revenue Bonds, Series 1997A, 5.250%, 5/15/22 -
FGIC Insured
2,150 Santa Clara Valley Water District, California, Water Utility 6/10 at 100.00 AAA 2,245,718
System Revenue Bonds, Series 2000A, 5.125%, 6/01/31 -
FGIC Insured
1,310 Santa Fe Springs Public Financing Authority, California, 5/13 at 100.00 AAA 1,358,391
Water Revenue Bonds, Series 2003A, 5.000%, 5/01/33 -
MBIA Insured
1,345 West Basin Municipal Water District, California, Revenue 8/13 at 100.00 AAA 1,429,963
Certificates of Participation, Series 2003A, 5.000%, 8/01/20 -
MBIA Insured
5,000 Wheeler Ridge-Maricopa Water District, Kern County, 11/06 at 102.00 AAA 5,349,100
California, Water Revenue Refunding Bonds, Series 1996,
5.700%, 11/01/15 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 129,990 Total Long-Term Investments (cost $133,830,669) - 141.2% 146,139,003
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 1.2% (0.8% OF TOTAL INVESTMENTS)
1,200 California Department of Water Resources, Power Supply A-1+ 1,200,000
Revenue Bonds, Variable Rate Demand Obligations,
Series 2002C-7, 1.840%, 5/01/22 - FSA Insured+
------------------------------------------------------------------------------------------------------------------------------------
$ 1,200 Total Short-Term Investments (cost $1,200,000) 1,200,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $135,030,669) - 142.4% 147,339,003
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.1% 1,139,458
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (43.5)% (45,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 103,478,461
====================================================================================================================
All of the bonds in the portfolio are either covered by
Original Issue Insurance, Secondary Market Insurance or
Portfolio Insurance, or are backed by an escrow or trust
containing sufficient U.S. Government or U.S. Government
agency securities, any of which ensure the timely payment of
principal and interest.
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
* 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.
** Ratings: Using the higher of Standard & Poor's or Moody's
rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of principal and
interest.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that in effect at
the end of the reporting period. This rate changes
periodically based on market conditions or a specified
market index.
See accompanying notes to financial statements.
25
Nuveen Insured California Premium Income Municipal Fund 2, Inc. (NCL)
Portfolio of
INVESTMENTS February 28, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 11.6% (7.8% OF TOTAL INVESTMENTS)
California Educational Facilities Authority, Revenue Bonds,
Santa Clara University, Series 1996:
$ 2,400 5.750%, 9/01/21 - MBIA Insured 9/06 at 102.00 AAA $ 2,559,120
3,000 5.750%, 9/01/26 - MBIA Insured 9/06 at 102.00 AAA 3,188,280
2,000 California Educational Facilities Authority, Revenue Bonds, 11/10 at 100.00 AAA 2,254,520
University of the Pacific, Series 2000, 5.875%, 11/01/20 -
MBIA Insured
2,125 California Educational Facilities Authority, Student Loan 3/08 at 102.00 AAA 2,235,457
Revenue Bonds, Cal Loan Program, Series , 5.400%, 3/01/21
(Alternative Minimum Tax) - MBIA Insured
5,380 California State University, Systemwide Revenue Bonds, 5/14 at 100.00 AAA 5,865,007
Series 2004A, 5.000%, 11/01/16 - FSA Insured
6,000 University of California, Revenue Bonds, Multi-Purpose 5/13 at 100.00 AAA 6,264,480
Projects, Series 2003A, 5.000%, 5/15/27 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 4.6% (3.1% OF TOTAL INVESTMENTS)
1,450 California Health Facilities Financing Authority, Insured 7/06 at 102.00 AAA 1,539,857
Health Facility Revenue Refunding Bonds, Mark Twain
St. Joseph's Healthcare Corporation, Series 1996A,
6.000%, 7/01/19 - MBIA Insured
5,000 California Health Facilities Financing Authority, Insured 7/06 at 102.00 AAA 5,306,750
Health Facility Revenue Refunding Bonds, Catholic
Healthcare West, Series 1996A, 6.000%, 7/01/25 -
MBIA Insured
1,755 University of California, Hospital Revenue Bonds, UCLA 5/12 at 101.00 AAA 1,974,129
Medical Center, Series 2004A, 5.500%, 5/15/18 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.6% (0.3% OF TOTAL INVESTMENTS)
1,105 California Housing Finance Agency, Single Family Mortgage 8/07 at 101.50 AAA 1,151,852
Bonds, Series 1997C-2-II, 5.625%, 8/01/20 (Alternative
Minimum Tax) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 26.5% (17.8% OF TOTAL INVESTMENTS)
1,460 ABC Unified School District, Los Angeles County, California, 8/10 at 101.00 AAA 1,652,034
General Obligation Bonds, Series 2000B, 5.750%, 8/01/16 -
FGIC Insured
485 California, General Obligation Veterans Welfare Bonds, 6/05 at 101.00 AAA 488,342
Series 1997BH, 5.500%, 12/01/24 (Alternative Minimum
Tax) - FSA Insured
2,500 California, Various Purpose General Obligation Bonds, 9/09 at 101.00 AAA 2,742,500
Series 1999, 5.500%, 9/01/24 - FSA Insured
California, Various Purpose General Obligation Bonds,
Series 2000:
7,995 5.750%, 3/01/22 - MBIA Insured 3/10 at 101.00 AAA 8,892,119
2,000 5.750%, 3/01/27 - MBIA Insured 3/10 at 101.00 AAA 2,217,020
4,400 California, General Obligation Bonds, Series 2003, 2/13 at 100.00 AAA 4,546,608
5.000%, 2/01/31 - MBIA Insured
3,000 California, General Obligation Veterans Welfare Bonds, 6/07 at 101.00 AAA 3,059,820
Series 2001BZ, 5.375%, 12/01/24 (Alternative Minimum
Tax) - MBIA Insured
California, General Obligation Bonds, Series 2004:
2,500 5.000%, 2/01/18 - AMBAC Insured 2/14 at 100.00 AAA 2,681,175
2,250 5.000%, 4/01/31 - AMBAC Insured 4/14 at 100.00 AAA 2,333,947
1,500 Hacienda La Puente Unified School District, Los Angeles 8/10 at 101.00 AAA 1,613,775
County, California, General Obligation Bonds, Series 2000A,
5.250%, 8/01/25 - MBIA Insured
Kern Community College District, California, General Obligation
Bonds, Series 2003A:
3,655 5.000%, 11/01/20 - FGIC Insured 11/13 at 100.00 AAA 3,911,069
2,665 5.000%, 11/01/21 - FGIC Insured 11/13 at 100.00 AAA 2,840,064
1,750 Lake Tahoe Unified School District, El Dorado County, 8/09 at 100.00 AAA 1,887,883
California, General Obligation Bonds, Series 1999A,
5.250%, 8/01/24 - FGIC Insured
26
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 2,200 Los Angeles Unified School District, California, General 7/13 at 100.00 AAA $ 2,373,558
Obligation Bonds, Series 2003F, 5.000%, 7/01/17 -
FSA Insured
Manteca Unified School District, San Joaquin County,
California, General Obligation Bonds, Series 2004:
1,000 5.250%, 8/01/21 - FSA Insured 8/14 at 100.00 AAA 1,096,080
1,000 5.250%, 8/01/22 - FSA Insured 8/14 at 100.00 AAA 1,092,800
1,270 Merced City School District, Merced County, California, 8/13 at 100.00 AAA 1,346,327
General Obligation Bonds, Series 2004, 5.000%, 8/01/22 -
FGIC Insured
1,125 San Diego Unified School District, California, General No Opt. Call AAA 516,161
Obligation Bonds, Election of 1998, Series 1999A,
0.000%, 7/01/21 - FGIC Insured
2,000 San Francisco Community College District, California, 6/10 at 102.00 AAA 2,086,120
General Obligation Bonds, Series 2002A, 5.000%, 6/15/26 -
FGIC Insured
1,000 San Ramon Valley Unified School District, Contra Costa 8/14 at 100.00 AAA 1,057,320
County, California, General Obligation Bonds, Series 2004,
5.000%, 8/01/24 - FSA Insured
2,445 Washington Unified School District, Yolo County, California, 8/13 at 100.00 AAA 2,603,949
General Obligation Bonds, Series 2004A, 5.000%, 8/01/21 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 47.0% (31.7% OF TOTAL INVESTMENTS)
Anaheim Public Finance Authority, California, Subordinate Lease
Revenue Bonds, Public Improvement Project, Series 1997C:
5,130 0.000%, 9/01/18 - FSA Insured No Opt. Call AAA 2,780,819
8,000 0.000%, 9/01/21 - FSA Insured No Opt. Call AAA 3,635,520
California Infrastructure Economic Development Bank, Revenue
Bonds, North County Center for Self-Sufficiency Corporation,
Series 2004:
1,535 5.000%, 12/01/20 - AMBAC Insured 12/13 at 100.00 AAA 1,635,113
1,780 5.000%, 12/01/23 - AMBAC Insured 12/13 at 100.00 AAA 1,873,343
3,500 California Department of Transportation, Federal Highway No Opt. Call AAA 3,860,605
Grant Anticipation Bonds, Series 2004A, 5.000%, 2/01/15 -
FGIC Insured
3,450 California State Public Works Board, Lease Revenue Bonds, 11/09 at 101.00 AAA 3,831,743
Department of Health Services, Series 1999A,
5.750%, 11/01/24 - MBIA Insured
5,000 Compton Community Redevelopment Agency, California, 8/05 at 102.00 AAA 5,186,700
Tax Allocation Refunding Bonds, Merged Area Redevelopment
Projects, Series 1995A, 6.500%, 8/01/13 - FSA Insured
4,000 Contra Costa County, California, Certificates of Participation 11/07 at 102.00 AAA 4,318,320
Refunding, Merrithew Memorial Hospital Replacement
Project, Series 1997, 5.500%, 11/01/22 - MBIA Insured
6,000 El Monte, California, Senior Lien Certificates of Participation, 1/11 at 100.00 AAA 6,244,440
Department of Public Services Facility Phase II, Series 2001,
5.000%, 1/01/21 - AMBAC Insured
3,000 Galt Schools Joint Powers Authority, Sacramento County, 11/07 at 102.00 AAA 3,285,330
California, Revenue Refunding Bonds, High School and
Elementary School Facilities, Series 1997A,
5.875%, 11/01/24 - MBIA Insured
5,000 Kern County Board of Education, California, Refunding 5/08 at 102.00 AAA 5,251,950
Certificates of Participation, Series 1998A,
5.200%, 5/01/28 - MBIA Insured
5,000 La Quinta Redevelopment Agency, California, Tax Allocation 9/07 at 102.00 AAA 5,253,500
Refunding Bonds, Redevelopment Project Area 1,
Series 1998, 5.200%, 9/01/28 - AMBAC Insured
2,300 Long Beach Bond Finance Authority, Multiple Project 8/15 at 100.00 AAA 2,423,165
Tax Allocation Bonds, Housing and Gas Utility Financing
Project Areas, Series 2005A-1, 5.000%, 8/01/25 (WI,
settling 3/02/05) - AMBAC Insured
4,000 Los Angeles, California, Certificates of Participation, 6/13 at 100.00 AAA 4,135,000
Municipal Improvement Corporation, Series 2003AW,
5.000%, 6/01/33 - AMBAC Insured
1,000 Los Angeles Community Redevelopment Agency, California, 12/14 at 100.00 AAA 1,071,310
Tax Allocation Bonds, Bunker Hill Project, Series 2004A,
5.000%, 12/01/20 - FSA Insured
3,865 Los Angeles County Metropolitan Transportation Authority, 7/10 at 101.00 AAA 4,110,234
California, Proposition C Second Senior Lien Sales Tax
Revenue Bonds, Series 2000A, 5.250%, 7/01/30 -
FGIC Insured
1,250 Los Angeles County Metropolitan Transportation Authority, 7/13 at 100.00 AAA 1,341,975
California, Proposition A First Tier Senior Sales Tax Revenue
Bonds, Series 2003B, 5.000%, 7/01/19 - MBIA Insured
27
Nuveen Insured California Premium Income Municipal Fund 2, Inc. (NCL) (continued)
Portfolio of INVESTMENTS February 28, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 2,690 Norwalk Community Facilities Financing Authority, 9/05 at 102.00 AAA $ 2,789,046
Los Angeles County, California, Tax Allocation Revenue
Refunding Bonds, Series 1995A, 6.000%, 9/01/15 -
FSA Insured
2,780 Pittsburg Redevelopment Agency, California, Tax Allocation No Opt. Call AAA 3,058,139
Refunding Bonds, Los Medanos Community Development
Project, Series 2003A, 5.000%, 8/01/12 - MBIA Insured
4,140 Plumas County, California, Certificates of Participation, 6/13 at 101.00 AAA 4,312,555
Capital Improvement Program, Series 2003A,
5.000%, 6/01/28 - AMBAC Insured
2,000 Poway Redevelopment Agency, California, Tax Allocation 12/10 at 102.00 AAA 2,260,880
Refunding Bonds, Paguay Redevelopment Project,
Series 2000, 5.750%, 6/15/33 - MBIA Insured
1,000 Rocklin Unified School District, Placer County, California, 9/13 at 100.00 AAA 1,050,090
Special Tax Bonds, Community Facilities District 1,
Series 2004, 5.000%, 9/01/25 - MBIA Insured
5,000 San Bernardino Joint Powers Financing Authority, 9/09 at 102.00 AAA 5,514,700
California, Certificates of Participation Refunding, Police
Station Financing Project, Series 1999, 5.500%, 9/01/20 -
MBIA Insured
3,500 San Francisco Bay Area Rapid Transit District, California, 7/09 at 101.00 AAA 3,799,285
Sales Tax Revenue Bonds, Series 1999,
5.500%, 7/01/34 - FGIC Insured
1,930 Santa Margarita/Dana Point Authority, Orange County, No Opt. Call AAA 1,970,974
California, Revenue Refinancing Bonds, Improvement
Districts 1, 2, 2A and 8, Series 1994A, 7.250%, 8/01/05 - MBIA
Insured
5,450 Visalia, California, Certificates of Participation Refunding, 12/06 at 102.00 AAA 5,774,221
Motor Vehicle License Fee Enhancement, Series 1996A,
5.375%, 12/01/26 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 6.7% (4.5% OF TOTAL INVESTMENTS)
6,500 Foothill/Eastern Transportation Corridor Agency, California, 1/10 at 65.32 AAA 3,369,665
Toll Road Revenue Refunding Bonds, Series 1999,
0.000%, 1/15/18 - MBIA Insured
4,000 Orange County Transportation Authority, California, Toll Road 8/13 at 100.00 AAA 4,310,960
Revenue Bonds, 91 Express Lanes Project, Series 2003A,
5.000%, 8/15/18 - AMBAC Insured
5,000 San Francisco Airports Commission, California, Revenue 5/11 at 100.00 AAA 5,174,000
Refunding Bonds, San Francisco International Airport,
Second Series 2001, Issue 27A, 5.250%, 5/01/31
(Alternative Minimum Tax) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 13.4% (9.1% OF TOTAL INVESTMENTS)
California Infrastructure Economic Development Bank, Revenue
Bonds, Asian Art Museum of San Francisco, Series 2000:
1,295 5.500%, 6/01/19 (Pre-refunded to 6/01/10) - MBIA Insured 6/10 at 101.00 AAA 1,462,962
1,000 5.500%, 6/01/20 (Pre-refunded to 6/01/10) - MBIA Insured 6/10 at 101.00 AAA 1,129,700
2,575 Calipatria Unified School District, Imperial County, 8/06 at 102.00 AAA 2,739,543
California, General Obligation Bonds, Series 1996A,
5.625%, 8/01/13 (Pre-refunded to 8/01/06) -
AMBAC Insured
2,725 Central Unified School District, Fresno County, California, 3/05 at 100.00 AAA 2,759,117
General Obligation Bonds, Series 1993, 5.625%, 3/01/18 -
AMBAC Insured
3,000 Escondido Union High School District, San Diego County, 11/06 at 102.00 AAA 3,214,830
California, General Obligation Bonds, Series 1996,
5.700%, 11/01/10 - MBIA Insured
Fresno Unified School District, Fresno County, California,
General Obligation Bonds, Series 2001F:
1,065 5.125%, 8/01/21 - FSA Insured 8/09 at 102.00 AAA 1,143,512
1,160 5.125%, 8/01/22 - FSA Insured 8/09 at 102.00 AAA 1,245,515
1,220 5.125%, 8/01/23 - FSA Insured 8/09 at 102.00 AAA 1,309,938
1,890 Menifee Union School District, Riverside County, California, 9/06 at 102.00 AAA 2,029,312
Certificates of Participation, School Projects, Series 1996,
6.125%, 9/01/24 (Pre-refunded to 9/01/06) - FSA Insured
2,500 Oakland, California, Insured Revenue Bonds, 1800 Harrison 1/10 at 100.00 AAA 2,844,600
Foundation - Kaiser Permanente, Series 1999A,
6.000%, 1/01/29 (Pre-refunded to 1/01/10) -
AMBAC Insured
4,320 Riverside County, California, GNMA Mortgage-Backed No Opt. Call AAA 6,051,370
Securities Program Single Family Mortgage Revenue Bonds,
Series 1987B, 8.625%, 5/01/16 (Alternative Minimum Tax)
28
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 12.2% (8.2% OF TOTAL INVESTMENTS)
$ 3,740 California Pollution Control Financing Authority, Revenue 9/09 at 101.00 AAA $ 4,022,594
Refunding Bonds, Southern California Edison Company,
Series 1999B, 5.450%, 9/01/29 - MBIA Insured
3,215 Modesto Irrigation District, California, Revenue Refunding 10/06 at 102.00 AAA 3,447,284
Bonds, Series 1996A, 6.000%, 10/01/15 - MBIA Insured
3,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/12 at 101.00 AAA 3,738,105
Series 2002II, 5.125%, 7/01/26 - FSA Insured
1,790 Sacramento City Financing Authority, California, Capital 12/09 at 102.00 AAA 2,031,829
Improvement Revenue Bonds, Solid Waste and
Redevelopment Projects, Series 1999, 5.800%, 12/01/19 -
AMBAC Insured
1,950 Salinas Valley Solid Waste Authority, California, Revenue 8/12 at 100.00 AAA 2,044,516
Bonds, Series 2002, 5.250%, 8/01/27 (Alternative
Minimum Tax) - AMBAC Insured
Santa Clara, California, Subordinate Electric Revenue
Bonds, Series 2003A:
2,800 5.000%, 7/01/24 - MBIA Insured 7/13 at 100.00 AAA 2,950,052
5,000 5.000%, 7/01/28 - MBIA Insured 7/13 at 100.00 AAA 5,212,600
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 25.6% (17.3% OF TOTAL INVESTMENTS)
1,700 Castaic Lake Water Agency, California, Revenue Certificates 8/14 at 100.00 AAA 1,817,878
of Participation, Series 2004A, 5.000%, 8/01/20 -
AMBAC Insured
2,975 Chino Basin Regional Finance Authority, California, Sewerage 8/05 at 101.00 AAA 3,043,366
System Revenue Bonds, Inland Empire Utilities Agency,
Series 1994, 6.000%, 8/01/16 - AMBAC Insured
2,000 El Dorado Irrigation District, California, Water and Sewer 3/14 at 100.00 AAA 2,122,820
Certificates of Participation, Series 2004A,
5.000%, 3/01/21 - FGIC Insured
2,700 Los Angeles County Sanitation Districts Financing 10/13 at 100.00 AAA 2,876,796
Authority, California, Senior Revenue Bonds, Capital
Projects, Series 2003A, 5.000%, 10/01/21 - FSA Insured
12,000 Orange County Sanitation District, California, Certificates 8/13 at 100.00 AAA 12,412,200
of Participation, Series 2003, 5.000%, 2/01/33 - FGIC Insured
2,775 Pomona Public Financing Authority, California, Revenue 5/09 at 101.00 AAA 3,004,826
Bonds, Water Facilities Project, Series 1999AC,
5.500%, 5/01/29 - FGIC Insured
1,000 Sacramento County Sanitation District Financing Authority, 12/10 at 101.00 AAA 1,112,170
California, Revenue Bonds, Series 2000A,
5.500%, 12/01/20 - AMBAC Insured
750 Sacramento County Sanitation District Financing Authority, 12/14 at 100.00 AAA 802,860
California, Revenue Bonds, Series 2004A,
5.000%, 12/01/21 - AMBAC Insured
1,520 San Buenaventura, California, Water Revenue Certificates 10/14 at 100.00 AAA 1,596,137
of Participation, Series 2004, 5.000%, 10/01/25 -
AMBAC Insured
3,675 San Dieguito Water District, California, Water Revenue Bonds, 10/14 at 100.00 AAA 3,900,535
Series 2004, 5.000%, 10/01/23 - FGIC Insured
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 1,496,040
445 5.000%, 2/01/20 - FGIC Insured 2/14 at 100.00 AAA 474,499
465 5.000%, 2/01/21 -FGIC Insured 2/14 at 100.00 AAA 493,323
2,130 Santa Rosa, Sonoma County, California, Wastewater Revenue 9/14 at 100.00 AAA 2,303,212
Bonds, Series 2004B, 5.000%, 9/01/18 - FGIC Insured
2,500 West Basin Municipal Water District, California, Revenue 8/13 at 100.00 AAA 2,589,425
Certificates of Participation, Series 2003A,
5.000%, 8/01/30 - MBIA Insured
4,500 Westlands Water District, California, Revenue Certificates 3/15 at 100.00 AAA 4,685,220
of Participation, Series 2005A, 5.000%, 9/01/30 -
MBIA Insured
29
Nuveen Insured California Premium Income Municipal Fund 2, Inc. (NCL) (continued)
Portfolio of INVESTMENTS February 28, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
Yorba Linda Water District, California, Certificates of
Participation, Highland Reservoir Renovation, Series 2003:
$ 2,010 5.000%, 10/01/28 - FGIC Insured 10/13 at 100.00 AAA $ 2,097,614
2,530 5.000%, 10/01/33 - FGIC Insured 10/13 at 100.00 AAA
------------------------------------------------------------------------------------------------------------------------------------
$ 278,035 Total Long-Term Investments (cost $268,891,940) - 148.2% 285,835,435
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.3% (0.2% OF TOTAL INVESTMENTS)
600 California, Economic Recovery Revenue Bonds, Variable Rate A-1+ 600,000
Demand Obligations, Series 2004C-6, 1.800%, 7/01/23+
------------------------------------------------------------------------------------------------------------------------------------
$ 600 Total Short-Term Investments (cost $600,000) 600,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $269,491,940) - 148.5% 286,435,435
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.7% 1,500,752
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.2)% (95,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 192,936,187
====================================================================================================================
All of the bonds in the portfolio, excluding temporary
investments in short-term municipal securities, are either
covered by Original Issue Insurance, Secondary Market
Insurance or Portfolio Insurance, or are backed by an escrow
or trust containing sufficient U.S. Government or U.S.
Government agency securities, any of which ensure the timely
payment of principal and interest.
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
* 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.
** Ratings: Using the higher of Standard & Poor's or Moody's
rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of principal and
interest.
(WI) Security purchased on a when-issued basis.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that in effect at
the end of the reporting period. This rate changes
periodically based on market conditions or a specified
market index.
See accompanying notes to financial statements.
30
Nuveen California Premium Income Municipal Fund (NCU)
Portfolio of
INVESTMENTS February 28, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 6.0% (4.0% OF TOTAL INVESTMENTS)
$ 1,500 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 Baa3 $ 1,484,370
Settlement Asset-Backed Bonds, Alameda County Tobacco
Asset Securitization Corporation, Series 2002, 5.750%, 6/01/29
3,670 California Statewide Financing Authority, Tobacco Settlement 5/12 at 100.00 Baa3 3,624,309
Asset-Backed Bonds, Pooled Tobacco Securitization Program,
Series 2002A, 5.625%, 5/01/29
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 1.9% (1.3% OF TOTAL INVESTMENTS)
1,500 University of California, Revenue Bonds, Multi-Purpose 5/13 at 100.00 AAA 1,636,590
Projects, Series 2003A, 5.125%, 5/15/17 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 21.9% (14.7% OF TOTAL INVESTMENTS)
1,500 California Health Facilities Financing Authority, Revenue 12/09 at 101.00 A3 1,625,775
Bonds, Cedars-Sinai Medical Center, Series 1999A,
6.125%, 12/01/30
5,150 California Health Facilities Financing Authority, Hospital 5/05 at 100.00 BB+ 5,056,064
Revenue Bonds, Downey Community Hospital, Series 1993,
5.750%, 5/15/15
1,500 California Infrastructure Economic Development Bank, 8/11 at 102.00 A 1,588,020
Revenue Bonds, Kaiser Hospital Assistance LLC,
Series 2001A, 5.550%, 8/01/31
260 California Statewide Community Development Authority, 7/15 at 100.00 BBB+ 267,041
Revenue Bonds, Daughters of Charity Health System,
Series 2005A, 5.250%, 7/01/35 (WI, settling 3/18/05)
8,100 California Statewide Community Development Authority, No Opt. Call AAA 8,816,121
Revenue Refunding Bonds, Sherman Oaks Health System,
Series 1998A, 5.000%, 8/01/22 - AMBAC Insured
1,370 Loma Linda, California, Hospital Revenue Bonds, Loma Linda 6/05 at 101.00 BB+ 1,391,536
University Medical Center, Series 1993A, 6.000%, 12/01/06
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.9% (1.3% OF TOTAL INVESTMENTS)
1,600 California Statewide Community Development Authority, 7/08 at 101.00 BBB 1,666,768
Revenue Refunding Bonds, Irvine Apartment Communities
Development, Series 1998A, 5.250%, 5/15/25
(Mandatory put 5/15/13)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.8% (0.6% OF TOTAL INVESTMENTS)
570 California Housing Finance Agency, Single Family Mortgage 2/07 at 102.00 AAA 595,445
Bonds II, Series 1997A-1, 6.000%, 8/01/20 (Alternative
Minimum Tax) - MBIA Insured
60 California Rural Home Mortgage Finance Authority, No Opt. Call AAA 61,116
Mortgage-Backed Securities Program Single Family
Mortgage Revenue Bonds, Series 1996C, 7.500%, 8/01/27
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 27.1% (18.2% OF TOTAL INVESTMENTS)
4,000 California, General Obligation Veterans Welfare Bonds, 6/05 at 100.00 A 4,004,000
Series 1999BR, 5.300%, 12/01/29 (Alternative Minimum Tax)
California, General Obligation Bonds, Series 2003:
1,000 5.250%, 11/01/19 - RAAI Insured 11/13 at 100.00 AA 1,094,640
1,055 5.250%, 2/01/21 8/13 at 100.00 A 1,139,569
1,500 5.000%, 2/01/31 - MBIA Insured 2/13 at 100.00 AAA 1,549,980
California, General Obligation Bonds, Series 2004:
1,750 5.000%, 4/01/22 4/14 at 100.00 A 1,840,633
1,750 5.000%, 2/01/23 2/14 at 100.00 A 1,831,358
1,400 5.200%, 4/01/26 4/14 at 100.00 A 1,487,108
1,000 Fremont Unified School District, Alameda County, California, 8/12 at 101.00 AAA 1,063,830
General Obligation Bonds, Series 2002A, 5.000%, 8/01/21 -
FGIC Insured
2,250 Los Angeles Unified School District, California, General 7/13 at 100.00 AAA 2,384,707
Obligation Bonds, Series 2003A, 5.000%, 7/01/22 -
FSA Insured
6,000 North Orange County Community College District, California, No Opt. Call AAA 1,924,680
General Obligation Bonds, Series 2003B, 0.000%, 8/01/27 -
FGIC Insured
31
Nuveen California Premium Income Municipal Fund (NCU) (continued)
Portfolio of INVESTMENTS February 28, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 3,000 Pomona Unified School District, Los Angeles County, 8/11 at 103.00 AAA $ 3,547,830
California, General Obligation Refunding Bonds,
Series 1997A, 6.150%, 8/01/15 - MBIA Insured
1,200 Riverside Community College District, California, General 8/14 at 100.00 AAA 1,311,360
Obligation Bonds, Series 2004A, 5.250%, 8/01/22 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 45.0% (30.2% OF TOTAL INVESTMENTS)
1,000 Bell Community Redevelopment Agency, California, 10/13 at 100.00 AA 1,074,960
Tax Allocation Bonds, Bell Project Area, Series 2003,
5.625%, 10/01/33 - RAAI Insured
985 Beverly Hills Public Financing Authority, California, Lease 6/13 at 100.00 Aaa 1,084,416
Revenue Refunding Bonds, Series 2003A, 5.250%, 6/01/15 -
MBIA Insured
California Infrastructure 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 AAA 1,790,225
1,865 5.000%, 12/01/24 - AMBAC Insured 12/13 at 100.00 AAA 1,957,243
California, Economic Recovery Revenue Bonds, Series 2004A:
1,720 5.000%, 7/01/15 7/14 at 100.00 AA- 1,878,825
1,000 5.000%, 7/01/16 7/11 at 100.00 AA- 1,078,410
5,920 California State Public Works Board, Lease Revenue Bonds, 11/09 at 101.00 AAA 6,560,011
Department of Veterans Affairs, Southern California Veterans
Home - Chula Vista Facility, Series 1999A, 5.600%, 11/01/19 -
AMBAC Insured
Golden State Tobacco Securitization Corporation, California,
Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2003B:
1,000 5.500%, 6/01/33 6/13 at 100.00 A- 1,077,920
1,000 5.625%, 6/01/33 6/13 at 100.00 A- 1,086,510
3,500 Livermore Redevelopment Agency, California, Tax Allocation 8/11 at 100.00 AAA 3,623,235
Revenue Bonds, Livermore Redevelopment Project Area,
Series 2001A, 5.000%, 8/01/26 - MBIA Insured
1,745 Los Angeles Community Redevelopment Agency, California, 6/05 at 100.00 BBB- 1,751,928
Tax Allocation Multifamily Housing Bonds, Grand Central
Square/Bunker Hill Project, Series 1993A, 5.750%, 12/01/13
(Alternative Minimum Tax)
2,000 Los Angeles County Metropolitan Transportation Authority, 7/13 at 100.00 AAA 2,147,160
California, Proposition A First Tier Senior Sales Tax Revenue
Bonds, Series 2003B, 5.000%, 7/01/19 - MBIA Insured
2,000 Oakland Redevelopment Agency, California, Subordinate 3/13 at 100.00 AAA 2,230,220
Lien Tax Allocation Bonds, Central District Redevelopment
Project, Series 2003, 5.500%, 9/01/15 - FGIC Insured
1,000 Poway, California, Community Facilities District 88-1, 8/08 at 102.00 N/R 1,112,800
Special Tax Refunding Bonds, Parkway Business Centre,
Series 1998, 6.500%, 8/15/09
3,000 Sacramento City Financing Authority, California, Lease No Opt. Call AA- 3,327,960
Revenue Refunding Bonds, Series 1993B, 5.400%, 11/01/20
1,500 Sacramento City Financing Authority, California, Lease No Opt. Call AAA 1,706,565
Revenue Refunding Bonds, Series 1993A, 5.400%, 11/01/20 -
MBIA Insured
San Marcos Public Facilities Authority, California, Revenue
Refunding Bonds, Series 1998:
1,500 5.800%, 9/01/18 9/08 at 101.00 Baa3 1,598,325
1,000 5.800%, 9/01/27 9/08 at 101.00 Baa3 1,049,150
2,050 Santa Barbara County, California, Certificates of Participation, 12/11 at 102.00 AAA 2,245,386
Series 2001, 5.250%, 12/01/19 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 8.3% (5.6% OF TOTAL INVESTMENTS)
3,000 California Infrastructure Economic Development Bank, 7/13 at 100.00 AAA 3,179,610
First Lien Revenue Bonds, San Francisco Bay Area Toll Bridge,
Series 2003A, 5.000%, 7/01/22 - FSA Insured
2,000 Foothill/Eastern Transportation Corridor Agency, California, 1/10 at 100.00 BBB- 1,852,680
Toll Road Revenue Bonds, Series 1995A, 5.000%, 1/01/35
2,000 San Francisco Airports Commission, California, Revenue 5/06 at 102.00 AAA 2,094,340
Bonds, San Francisco International Airport, Second Series
Issue 10A, 5.700%, 5/01/26 (Alternative Minimum Tax) -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 6.2% (4.2% OF TOTAL INVESTMENTS)
2,750 Puerto Rico, General Obligation and Public Improvement 7/10 at 100.00 AAA 3,093,833
Bonds, Series 2000, 5.750%, 7/01/21 (Pre-refunded to
7/01/10) - MBIA Insured
2,000 Vista, California, Mobile Home Park Revenue Bonds, Vista 3/24 at 100.00 N/R*** 2,229,740
Manor Mobile Home Park Project, Series 1999A,
5.750%, 3/15/29 (Pre-refunded to 3/15/24)
32
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 11.4% (7.6% OF TOTAL INVESTMENTS)
California Department of Water Resources, Power Supply
Revenue Bonds, Series 2002A:
$ 400 5.375%, 5/01/17 - XLCA Insured 5/12 at 101.00 AAA $ 444,268
2,250 5.125%, 5/01/18 5/12 at 101.00 A2 2,416,770
275 Los Angeles Department of Water and Power, California, 7/13 at 100.00 AAA 292,823
Power System Revenue Bonds, Series 2003A-2,
5.000%, 7/01/21 - MBIA Insured
1,500 Merced Irrigation District, California, Revenue Refunding 9/05 at 102.00 Baa3 1,542,360
Bonds, Electric System Project, Series 2001, 6.500%, 9/01/22
4,580 Sacramento Municipal Utility District, California, Electric 8/12 at 100.00 AAA 5,026,733
Revenue Refunding Bonds, Series 2002Q, 5.250%, 8/15/20 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 17.1% (11.5% OF TOTAL INVESTMENTS)
1,125 Burbank, California, Wastewater System Revenue Bonds, 6/14 at 100.00 AAA 1,187,629
Series 2004A, 5.000%, 6/01/23 - AMBAC Insured
1,095 California Statewide Community Development Authority, 10/13 at 100.00 AAA 1,180,848
Water and Wastewater Revenue Bonds, Pooled Financing
Program, Series 2003A, 5.250%, 10/01/23 - FSA Insured
5,000 Culver City, California, Wastewater Facilities Revenue 9/09 at 102.00 AAA 5,567,250
Refunding Bonds, Series 1999A, 5.700%, 9/01/29 -
FGIC Insured
3,495 Orange County Sanitation District, California, Certificates 8/13 at 100.00 AAA 3,785,260
of Participation, Series 2003, 5.250%, 2/01/21 - FGIC Insured
1,000 Sacramento County Water Financing Authority, California, 6/13 at 100.00 AAA 1,059,720
Revenue Bonds, Agency Zones 40-41 System Projects,
Series 2003, 5.000%, 6/01/22 - AMBAC Insured
1,795 Woodbridge Irrigation District, California, Certificates 7/13 at 100.00 BBB+ 1,872,254
of Participation, Water Systems Project, Series 2003,
5.500%, 7/01/33
------------------------------------------------------------------------------------------------------------------------------------
$ 122,430 Total Long-Term Investments (cost $119,082,726) - 147.6% 126,200,217
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 1.2% (0.8% OF TOTAL INVESTMENTS)
1,000 Pittsburg Redevelopment Agency, California, Tax Allocation A-1+ 1,000,000
Bonds, Los Medanos Community Development Project,
Variable Rate Demand Obligations, Series 2004A,
1.760%, 9/01/35 - AMBAC Insured+
------------------------------------------------------------------------------------------------------------------------------------
$ 1,000 Total Short-Term Investments (cost $1,000,000) 1,000,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $120,082,726) - 148.8% 127,200,217
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.5% 1,299,178
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (50.3)% (43,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 85,499,395
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
* 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.
** Ratings: Using the higher of Standard & Poor's or Moody's
rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of principal and
interest. Such securities are normally considered to be
equivalent to AAA rated securities.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that in effect at
the end of the reporting period. This rate changes
periodically based on market conditions or a specified
market index.
See accompanying notes to financial statements.
33
Nuveen California Dividend Advantage Municipal Fund (NAC)
Portfolio of
INVESTMENTS February 28, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 5.6% (3.8% OF TOTAL INVESTMENTS)
$ 5,000 California Statewide Community Development Authority, 11/09 at 102.00 N/R $ 5,230,050
Certificates of Participation, Pride Industries and Pride
One Inc., Series 1999, 7.250%, 11/01/29
5,200 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB 5,303,792
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.250%, 6/01/33
Northern California Tobacco Securitization Authority, Tobacco
Settlement Asset-Backed Bonds, Series 2001A:
2,500 5.250%, 6/01/31 6/11 at 100.00 BBB 2,258,000
4,500 5.375%, 6/01/41 6/11 at 100.00 BBB 4,101,120
3,635 Southern California Tobacco Securitization Authority, 6/12 at 100.00 BBB 3,690,325
Tobacco Settlement Asset-Backed Bonds, Senior
Series 2001A, 5.250%, 6/01/27
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 10.4% (7.1% OF TOTAL INVESTMENTS)
615 California Statewide Community Development Authority, 10/13 at 100.00 N/R 607,122
Revenue Bonds, Notre Dame de Namur University,
Series 2003, 6.500%, 10/01/23
3,000 Long Beach Bond Financing Authority, California, Lease 11/11 at 100.00 AAA 3,367,140
Revenue Refunding Bonds, Long Beach Aquarium of the
South Pacific, Series 2001, 5.500%, 11/01/17 -
AMBAC Insured
700 University of California, Certificates of Participation, 1/10 at 101.00 Aa2 738,367
San Diego and Sacramento Campus Projects, Series 2002A,
5.250%, 1/01/22
6,000 University of California, Revenue Bonds, Multiple Purpose 9/08 at 101.00 AA 6,455,400
Projects, Series 2000K, 5.000%, 9/01/12
University of California, Revenue Bonds, Multi-Purpose
Projects, Series 2002O:
10,770 5.000%, 9/01/20 - FGIC Insured 9/10 at 101.00 AAA 11,499,883
11,305 5.000%, 9/01/21 - FGIC Insured 9/10 at 101.00 AAA 12,024,789
3,500 University of California, Revenue Bonds, Multi-Purpose 5/13 at 100.00 AAA 3,818,710
Projects, Series 2003A, 5.125%, 5/15/17 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 11.4% (7.8% OF TOTAL INVESTMENTS)
15,000 California Health Facilities Financing Authority, Revenue Bonds, 12/09 at 101.00 A3 16,257,750
Cedars-Sinai Medical Center, Series 1999A, 6.125%, 12/01/30
2,160 California Health Facilities Financing Authority, Health 3/13 at 100.00 A 2,276,791
Facility Revenue Bonds, Adventist Health System/West,
Series 2003A, 5.000%, 3/01/15
8,000 Central California Joint Powers Health Finance Authority, 2/10 at 101.00 Baa2 8,331,040
Certificates of Participation, Community Hospitals of Central
California Obligated Group, Series 2000, 6.000%, 2/01/30
10,500 Duarte, California, Certificates of Participation, City of Hope 4/09 at 101.00 BBB 10,328,010
National Medical Center, Series 1999A, 5.250%, 4/01/31
2,155 Upland, California, Certificates of Participation, San Antonio 7/05 at 101.00 A- 2,178,662
Community Hospital, Series 1993, 5.250%, 1/01/08
2,500 Whittier, California, Health Facility Revenue Bonds, 6/12 at 101.00 A 2,667,550
Presbyterian Intercommunity Hospital, Series 2002,
5.600%, 6/01/22
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 7.2% (4.9% OF TOTAL INVESTMENTS)
7,250 California Statewide Community Development Authority, 7/08 at 101.00 BBB 7,596,768
Revenue Refunding Bonds, Irvine Apartment Communities
Development, Series 1998A, 4.900%, 5/15/25 (Mandatory
put 5/15/08)
5,235 California Statewide Community Development Authority, 8/12 at 105.00 Aaa 5,832,732
GNMA Collateralized Housing Revenue Refunding Bonds,
Crowne Pointe Project, Series 2002F, 6.750%, 8/20/37
34
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY (continued)
$ 5,000 Contra Costa County, California, Multifamily Housing Revenue 6/09 at 102.00 N/R $ 5,036,000
Bonds, Delta View Apartments Project, Series 1999C,
6.750%, 12/01/30 (Alternative Minimum Tax)
7,500 San Bernardino County Housing Authority, California, No Opt. Call BBB+ 7,984,800
Multifamily Housing Revenue Refunding Bonds, Equity
Residential Properties/Redlands Lawn and Tennis Apartments,
Series 1999A, 5.200%, 6/15/29 (Mandatory put 6/15/09)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.4% (1.6% OF TOTAL INVESTMENTS)
8,500 Riverside County Public Financing Authority, California, 5/09 at 101.00 BBB- 8,822,150
Certificates of Participation, Air Force Village West,
Series 1999, 5.800%, 5/15/29
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 22.2% (15.3% OF TOTAL INVESTMENTS)
California, General Obligation Refunding Bonds, Series 2002:
8,000 5.000%, 2/01/12 No Opt. Call A 8,714,160
4,435 6.000%, 4/01/16 - AMBAC Insured No Opt. Call AAA 5,300,091
California, General Obligation Bonds, Series 2003:
2,000 5.250%, 11/01/19 - RAAI Insured 11/13 at 100.00 AA 2,189,280
5,200 5.250%, 2/01/20 8/13 at 100.00 A 5,634,148
California, General Obligation Bonds, Series 2004:
5,000 5.125%, 4/01/23 4/14 at 100.00 A 5,305,600
4,150 5.125%, 4/01/25 4/14 at 100.00 A 4,378,043
18,500 Los Angeles Unified School District, California, General 7/09 at 101.00 AAA 19,975,190
Obligation Bonds, Series 1999C, 5.250%, 7/01/24 -
MBIA Insured
10,845 Los Angeles Unified School District, California, General 7/12 at 100.00 AAA 11,644,819
Obligation Bonds, Series 2002E, 5.000%, 7/01/19 -
MBIA Insured
3,335 Moreno Valley Unified School District, Riverside County, 8/14 at 100.00 AAA 3,655,427
California, General Obligation Bonds, Series 2004A,
5.250%, 8/01/21 - FSA Insured
1,750 Oakland Unified School District, Alameda County, California, 8/08 at 101.00 AAA 1,863,838
General Obligation Bonds, Series 2001, 5.125%, 8/01/21 -
FSA Insured
5,000 San Diego Unified School District, San Diego County, California, 7/13 at 101.00 AAA 5,598,000
General Obligation Bonds, Series 2003E, 5.250%, 7/01/20 -
FSA Insured
2,560 Southwestern Community College District, San Diego County, 8/14 at 100.00 AAA 2,714,906
California, General Obligation Bonds, Series 2004,
5.000%, 8/01/23 - FGIC Insured
1,300 Ventura County Community College District, California, 8/12 at 101.00 AAA 1,420,042
General Obligation Bonds, Series 2002A, 5.000%, 8/01/15 -
MBIA Insured
3,605 West Contra Costa Unified School District, Contra Costa 8/11 at 101.00 AAA 3,834,494
County, California, General Obligation Bonds, Series 2003B,
5.000%, 8/01/21 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 39.6% (27.2% 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 1,002,950
615 5.800%, 9/01/35 9/14 at 102.00 N/R 617,817
Brentwood Infrastructure Financing Authority, Contra Costa
County, California, Capital Improvement Revenue Bonds, Series 2001:
1,110 5.375%, 11/01/18 - FSA Insured 11/11 at 100.00 AAA 1,236,018
1,165 5.375%, 11/01/19 - FSA Insured 11/11 at 100.00 AAA 1,296,610
1,990 Brentwood Infrastructure Financing Authority, California, 9/12 at 100.00 AAA 2,096,385
Infrastructure Revenue Refunding Bonds, Series 2002A,
5.125%, 9/02/24 - FSA Insured
7,400 California, Economic Recovery Revenue Bonds, 7/14 at 100.00 AA- 8,083,316
Series 2004A, 5.000%, 7/01/15
2,000 Capistrano Unified School District, Orange County, California, 9/13 at 100.00 N/R 2,116,620
Special Tax Bonds, Community Facilities District 90-2,
Talega, Series 2003, 6.000%, 9/01/33
3,490 Fontana, California, Senior Special Tax Refunding Bonds, 9/08 at 102.00 AAA 3,804,554
Heritage Village Community Facilities District 2,
Series 1998A, 5.250%, 9/01/17 - MBIA Insured
35
Nuveen California Dividend Advantage Municipal Fund (NAC) (continued)
Portfolio of INVESTMENTS February 28, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,125 Fontana, California, Special Tax Bonds, Sierra Community 9/14 at 100.00 N/R $ 1,145,790
Facilities District 22, Series 2004, 6.000%, 9/01/34
3,980 Garden Grove, California, Certificates of Participation, 3/12 at 101.00 AAA 4,414,616
Financing Project, Series 2002A, 5.500%, 3/01/22 -
AMBAC Insured
4,500 Inglewood Redevelopment Agency, California, Tax Allocation No Opt. Call AAA 5,046,615
Refunding Bonds, Merged Area Redevelopment Project,
Series 1998A, 5.250%, 5/01/23 - AMBAC Insured
2,000 Lee Lake Water District, Riverside County, California, 9/13 at 102.00 N/R 2,186,120
Special Tax Bonds, Community Facilities District 1 of
Sycamore Creek, Series 2003, 6.500%, 9/01/24
2,200 Lincoln, California, Special Tax Bonds, Lincoln Crossing 9/13 at 102.00 N/R 2,347,554
Community Facilities District 03-1, Series 2003A,
6.500%, 9/01/25
1,500 Lincoln, California, Special Tax Bonds, Lincoln Crossing 9/13 at 102.00 N/R 1,541,760
Community Facilities District 03-1, Series 2004,
6.000%, 9/01/34
5,000 Los Angeles County Metropolitan Transportation Authority, 7/08 at 101.00 AAA 5,229,850
California, Proposition C Second Senior Lien Sales Tax
Revenue Refunding Bonds, Series 1998A, 5.000%, 7/01/23 -
AMBAC Insured
10,000 Los Angeles County Public Works Financing Authority, 10/07 at 101.00 AA 10,570,700
California, Revenue Bonds, Regional Park and Open Space
District, Series 1997A, 5.000%, 10/01/16
1,530 Moreno Valley Unified School District, Riverside County, 3/14 at 100.00 AAA 1,607,540
California, Certificates of Participation, Series 2005,
5.000%, 3/01/24 - FSA Insured
9,200 Norco Redevelopment Agency, California, Tax Allocation 3/11 at 102.00 AAA 9,776,472
Refunding Bonds, Project Area 1, Series 2001,
5.000%, 3/01/19 - MBIA Insured
5,545 Oakland Joint Power Financing Authority, California, No Opt. Call AAA 6,339,709
Lease Revenue Refunding Bonds, Oakland Convention
Centers, Series 2001, 5.500%, 10/01/14 - AMBAC Insured
3,290 Oakland Redevelopment Agency, California, Subordinate 3/13 at 100.00 AAA 3,662,231
Lien Tax Allocation Bonds, Central District Redevelopment
Project, Series 2003, 5.500%, 9/01/16 - FGIC Insured
4,000 Orange County Local Transportation Authority, California, No Opt. Call AAA 4,353,040
Limited Sales Tax Revenue Refunding Bonds, Measure M,
Series 1997A, 5.700%, 2/15/08 - AMBAC Insured
5,600 Palm Springs Financing Authority, California, Lease Revenue 11/11 at 101.00 AAA 5,892,152
Refunding Bonds, Convention Center Project, Series 2001A,
5.000%, 11/01/22 - MBIA Insured
1,000 Palmdale Community Redevelopment Agency, California, 12/14 at 100.00 AAA 1,054,020
Tax Allocation Bonds, Merged Redevelopment Project Areas,
Series 2004, 5.000%, 12/01/24 - AMBAC Insured
8,100 Poway Redevelopment Agency, California, Tax Allocation 12/10 at 102.00 AAA 9,156,564
Refunding Bonds, Paguay Redevelopment Project,
Series 2000, 5.750%, 6/15/33 - MBIA Insured
1,055 Poway Redevelopment Agency, California, Tax Allocation 12/11 at 101.00 AAA 1,179,163
Bonds, Paguay Redevelopment Project, Series 2001,
5.375%, 12/15/16 - AMBAC Insured
1,860 Riverside Redevelopment Agency, California, Tax Allocation 8/13 at 100.00 AAA 2,008,967
Refunding Bonds, Merged Project Areas, Series 2003,
5.250%, 8/01/22 - MBIA Insured
5,795 Riverside County Public Financing Authority, California, No Opt. Call N/R 5,968,386
Junior Lien Reassessment Revenue Bonds, Rancho
Villages Project, Series 1999B, 6.000%, 9/02/07
1,725 Rohnert Park Finance Authority, California, Senior Lien 9/13 at 100.00 BBB 1,745,252
Revenue Bonds, Rancho Feliz Mobile Home Park,
Series 2003A, 5.750%, 9/15/38
1,120 Rohnert Park Finance Authority, California, Subordinate Lien 9/13 at 100.00 N/R 1,141,874
Revenue Bonds, Rancho Feliz Mobile Home Park,
Series 2003B, 6.625%, 9/15/38
2,500 Sacramento City Financing Authority, California, Lease No Opt. Call AAA 2,877,650
Revenue Refunding Bonds, Series 1993A, 5.400%, 11/01/20 -
AMBAC Insured
1,150 Sacramento, California, Special Tax Bonds, North Natomas 9/14 at 100.00 N/R 1,192,561
Community Facilities District 4, Series 2003C, 6.000%, 9/01/33
24,060 San Jose Redevelopment Agency, California, Tax Allocation 8/08 at 102.00 A 24,872,506
Bonds, Merged Area Redevelopment Project, Series 1998,
5.250%, 8/01/29
36
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 2,695 San Jose Financing Authority, California, Lease Revenue 6/12 at 100.00 AAA $ 2,951,968
Refunding Bonds, Civic Center Project, Series 2002B,
5.250%, 6/01/19 - AMBAC Insured
1,595 San Marcos Public Facilities Authority, California, Special 9/09 at 102.00 N/R 1,641,207
Tax Bonds, Community Facilities District 99-1, Series 2003B,
6.000%, 9/01/24
2,810 West Patterson Financing Authority, California, Special Tax 9/13 at 103.00 N/R 3,057,533
Bonds, Community Facilities District 01-1, Series 2003B,
7.000%, 9/01/38
1,350 West Patterson Financing Authority, California, Special Tax 9/13 at 103.00 N/R 1,377,365
Bonds, Community Facilities District 2001-1, Series 2004A,
6.125%, 9/01/39
2,000 West Patterson Financing Authority, California, Special Tax 9/13 at 102.00 N/R 2,016,260
Bonds, Community Facilities District 01-1, Series 2004B,
6.000%, 9/01/39
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 19.8% (13.6% OF TOTAL INVESTMENTS)
8,150 Foothill/Eastern Transportation Corridor Agency, California, 1/10 at 101.00 BBB- 8,299,879
Toll Road Revenue Refunding Bonds, Series 1999,
5.750%, 1/15/40
8,515 Los Angeles Harbors Department, California, Revenue 8/11 at 100.00 AAA 9,320,434
Refunding Bonds, Series 2001B, 5.500%, 8/01/18
(Alternative Minimum Tax) - AMBAC Insured
23,000 Port of Oakland, California, Revenue Bonds, Series 2000K, 5/10 at 100.00 AAA 25,081,960
5.750%, 11/01/29 (Alternative Minimum Tax) - FGIC Insured
5,000 San Francisco Airports Commission, California, Revenue 5/06 at 101.00 AAA 5,182,800
Bonds, San Francisco International Airport, Second Series
Issue 13B, 5.625%, 5/01/21 (Alternative Minimum Tax) -
MBIA Insured
23,275 San Francisco Airports Commission, California, Revenue 5/10 at 101.00 AAA 25,190,067
Bonds, San Francisco International Airport, Second
Series 2000, Issue 24A, 5.750%, 5/01/30 (Alternative
Minimum Tax) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 4.3% (2.9% OF TOTAL INVESTMENTS)
8,400 California Health Facilities Financing Authority, Revenue 10/08 at 101.00 AAA 9,103,752
Bonds, Kaiser Permanente System, Series 1998B,
5.250%, 10/01/14 (Optional put 10/01/08)
1,000 Los Angeles Community College District, Los Angeles 8/11 at 100.00 AAA 1,035,210
County, California, General Obligation Bonds, Series 2001A,
5.000%, 6/01/26 (Pre-refunded to 8/01/11) - MBIA Insured
5,000 Puerto Rico, General Obligation and Public Improvement 7/10 at 100.00 AAA 5,625,150
Bonds, Series 2000, 5.750%, 7/01/16 (Pre-refunded to
7/01/10) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 11.5% (7.9% OF TOTAL INVESTMENTS)
California Department of Water Resources, Power Supply
Revenue Bonds, Series 2002A:
2,500 5.375%, 5/01/17 - XLCA Insured 5/12 at 101.00 AAA 2,776,675
9,750 5.125%, 5/01/18 5/12 at 101.00 A2 10,472,670
3,630 Imperial Irrigation District, California, Certificates of 11/13 at 100.00 AAA 3,914,084
Participation, Electric System Revenue Bonds, Series 2003,
5.250%, 11/01/23 - FSA Insured
7,000 Los Angeles Department of Water and Power, California, 7/11 at 100.00 AAA 7,612,080
Power System Revenue Bonds, Series 2001A-1,
5.250%, 7/01/21 - FSA Insured
8,370 Los Angeles Department of Water and Power, California, 7/11 at 100.00 AAA 9,277,810
Power System Revenue Refunding Bonds, Series 2001A-2,
5.375%, 7/01/19 - MBIA Insured
1,200 Los Angeles Department of Water and Power, California, 7/13 at 100.00 AAA 1,277,772
Power System Revenue Bonds, Series 2003A-2,
5.000%, 7/01/21 - MBIA Insured
7,000 Merced Irrigation District, California, Revenue Refunding 9/05 at 102.00 Baa3 7,201,880
Bonds, Electric System Project, Series 2001, 6.750%, 9/01/31
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 11.2% (7.7% OF TOTAL INVESTMENTS)
11,000 California Department of Water Resources, Water System 12/11 at 100.00 AAA 11,985,930
Revenue Bonds, Central Valley Project, Series 2001W,
5.250%, 12/01/22 - FSA Insured
14,000 Orange County Water District, California, Revenue 8/09 at 101.00 AA+ 14,973,980
Certificates of Participation, Series 1999A, 5.375%, 8/15/29
37
Nuveen California Dividend Advantage Municipal Fund (NAC) (continued)
Portfolio of INVESTMENTS February 28, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 8,250 Pico Rivera Water Authority, California, Revenue Bonds, 12/11 at 102.00 N/R $ 8,849,445
Series 2001A, 6.250%, 12/01/32
5,115 San Francisco City and County Public Utilities Commission, 11/12 at 100.00 AAA 5,529,211
California, Water Revenue Bonds, Series 2002A,
5.000%, 11/01/18 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 503,415 Total Long-Term Investments (cost $504,946,087) - 145.6% 537,955,473
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.3% (0.2% OF TOTAL INVESTMENTS)
1,000 Pittsburg Redevelopment Agency, California, Tax Allocation A-1+ 1,000,000
Bonds, Los Medanos Community Development Project,
Variable Rate Demand Obligations, Series 2004A,
1.760%, 9/01/35 - AMBAC Insured+
------------------------------------------------------------------------------------------------------------------------------------
$ 1,000 Total Short-Term Investments (cost $1,000,000) 1,000,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $505,946,087) - 145.9% 538,955,473
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.5% 5,460,733
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (47.4)% (175,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 369,416,206
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
* 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.
** Ratings: Using the higher of Standard & Poor's or Moody's
rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of principal and
interest.
N/R Investment is not rated.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that in effect at
the end of the reporting period. This rate changes
periodically based on market conditions or a specified
market index.
See accompanying notes to financial statements.
38
Nuveen California Dividend Advantage Municipal Fund 2 (NVX)
Portfolio of
INVESTMENTS February 28, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 5.8% (3.9% OF TOTAL INVESTMENTS)
$ 4,625 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 Baa3 $ 4,423,581
Settlement Asset-Backed Bonds, Stanislaus County Tobacco
Funding Corporation, Series 2002A, 5.500%, 6/01/33
3,200 Golden State Tobacco Securitization Corporation, 6/13 at 100.00 BBB 3,263,872
California, Tobacco Settlement Asset-Backed Bonds,
Series 2003A-1, 6.250%, 6/01/33
3,000 Northern California Tobacco Securitization Authority, Tobacco 6/11 at 100.00 BBB 2,734,080
Settlement Asset-Backed Bonds, Series 2001A,
5.375%, 6/01/41
2,800 Southern California Tobacco Securitization Authority, Tobacco 6/12 at 100.00 BBB 2,608,732
Settlement Asset-Backed Bonds, Senior Series 2001A,
5.500%, 6/01/36
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 15.0% (10.2% OF TOTAL INVESTMENTS)
2,000 California Educational Facilities Authority, Revenue Bonds, 6/11 at 101.00 AAA 2,123,020
Stanford University, Series 2001Q, 5.250%, 12/01/32
6,375 California Educational Facilities Authority, Student Loan 3/08 at 102.00 Aaa 6,706,372
Revenue Bonds, Cal Loan Program, Series 2001A,
5.400%, 3/01/21 (Alternative Minimum Tax) - MBIA Insured
California State Public Works Board, Lease Revenue Bonds,
University of California System, Series 2002A:
8,880 5.375%, 10/01/16 - FSA Insured 10/12 at 100.00 AAA 9,748,464
10,570 5.375%, 10/01/18 - FSA Insured 10/12 at 100.00 AAA 11,567,385
620 California Statewide Community Development Authority, 10/13 at 100.00 N/R 612,058
Revenue Bonds, Notre Dame de Namur University,
Series 2003, 6.500%, 10/01/23
3,000 Long Beach Bond Financing Authority, California, Lease 11/11 at 101.00 AAA 3,175,410
Revenue Refunding Bonds, Long Beach Aquarium of the
South Pacific, Series 2001, 5.250%, 11/01/30 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 8.6% (5.8% OF TOTAL INVESTMENTS)
2,000 California Health Facilities Financing Authority, Revenue 4/12 at 100.00 BBB+ 2,127,280
Bonds, Casa Colina Inc., Series 2001, 6.000%, 4/01/22
500 California Infrastructure Economic Development Bank, 8/11 at 102.00 A 529,340
Revenue Bonds, Kaiser Hospital Assistance LLC,
Series 2001A, 5.550%, 8/01/31
955 California State Public Works Board, Revenue Bonds, 11/14 at 100.00 AAA 1,008,556
University of California - Davis Medical Center,
Series 2004II-A, 5.000%, 11/01/22 - MBIA Insured
190 California Statewide Community Development Authority, 7/15 at 100.00 BBB+ 195,145
Revenue Bonds, Daughters of Charity Health System,
Series 2005A, 5.250%, 7/01/35 (WI, settling 3/18/05)
5,355 California Statewide Community Development Authority, No Opt. Call A 5,630,568
Revenue Bonds, Kaiser Permanente System, Series 2002E,
4.700%, 11/01/36 (Mandatory put 5/31/09)
2,185 California Statewide Community Development Authority, No Opt. Call A 2,486,071
Health Facility Revenue Refunding Bonds, Memorial
Health Services, Series 2003A, 6.000%, 10/01/11
2,500 California Statewide Community Development Authority, 6/13 at 100.00 AAA 2,720,525
Hospital Revenue Bonds, Monterey Peninsula Hospital,
Series 2003B, 5.250%, 6/01/18 - FSA Insured
3,000 Central California Joint Powers Health Finance Authority, 2/10 at 101.00 Baa2 3,124,140
Certificates of Participation, Community Hospitals of
Central California Obligated Group, Series 2000,
6.000%, 2/01/30
1,500 Whittier, California, Health Facility Revenue Bonds, 6/12 at 101.00 A 1,600,530
Presbyterian Intercommunity Hospital, Series 2002,
5.600%, 6/01/22
39
Nuveen California Dividend Advantage Municipal Fund 2 (NVX) (continued)
Portfolio of INVESTMENTS February 28, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 7.4% (5.0% OF TOTAL INVESTMENTS)
$ 2,450 ABAG Finance Authority for Non-Profit Corporations, California, No Opt. Call Baa2 $ 2,660,700
Multifamily Housing Revenue Refunding Bonds, United
Dominion/2000 Post Apartments, Series 2000B,
6.250%, 8/15/30 (Mandatory put 8/15/08)
3,750 California Statewide Community Development Authority, 7/08 at 101.00 BBB 3,929,363
Revenue Refunding Bonds, Irvine Apartment Communities
Development, Series 1998A, 4.900%, 5/15/25
(Mandatory put 5/15/08)
5,962 California Statewide Community Development Authority, 6/11 at 102.00 AAA 6,237,087
Multifamily Housing Revenue Refunding Bonds, Claremont
Village Apartments, Series 2001D, 5.500%, 6/01/31
(Alternative Minimum Tax) (Mandatory put 6/01/16)
3,490 California Statewide Community Development Authority, 8/12 at 105.00 Aaa 3,888,488
GNMA Collateralized Housing Revenue Refunding Bonds,
Crowne Pointe Project, Series 2002F, 6.750%, 8/20/37
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.9% (0.6% OF TOTAL INVESTMENTS)
1,920 California Rural Home Mortgage Finance Authority, 6/11 at 102.00 AAA 1,988,064
Mortgage-Backed Securities Program Single Family
Mortgage Revenue Bonds, Series 2001A, 5.650%, 12/01/31
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 0.7% (0.6% OF TOTAL INVESTMENTS)
1,550 California Health Facilities Financing Authority, Insured 1/13 at 100.00 A 1,620,091
Revenue Bonds, Northern California Retired Officers
Community Corporation - Paradise Valley Estates,
Series 2002, 5.125%, 1/01/22
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 29.1% (19.8% OF TOTAL INVESTMENTS)
5,000 California, General Obligation Refunding Bonds, No Opt. Call A 5,446,350
Series 2002, 5.000%, 2/01/12
7,225 California, General Obligation Veterans Welfare Bonds, 6/06 at 101.00 AAA 7,525,416
Series 2001BV, 5.600%, 12/01/32 - FSA Insured
California, General Obligation Bonds, Series 2003:
3,000 5.250%, 2/01/20 8/13 at 100.00 A 3,250,470
1,400 5.250%, 2/01/21 8/13 at 100.00 A 1,512,224
1,350 California, General Obligation Bonds, Series 2004, 5.125%, 4/01/25 4/14 at 100.00 A 1,424,183
3,615 Colton Joint Unified School District, San Bernardino County, 8/12 at 102.00 AAA 4,043,920
California, General Obligation Bonds, Series 2002A,
5.500%, 8/01/22 - FGIC Insured
Contra Costa County Community College District, California,
General Obligation Bonds, Series 2002:
3,005 5.000%, 8/01/21 - FGIC Insured 8/12 at 100.00 AAA 3,196,298
3,300 5.000%, 8/01/22 - FGIC Insured 8/12 at 100.00 AAA 3,493,776
1,325 Golden West Schools Financing Authority, California, No Opt. Call AAA 1,618,779
Revenue Bonds, School District General Obligation Refunding
Program, Series 1998A, 6.650%, 8/01/13 - MBIA Insured
8,330 Los Angeles Unified School District, California, General 7/10 at 100.00 AAA 8,954,250
Obligation Bonds, Series 2000D, 5.375%, 7/01/25 -
FGIC Insured
10,840 Los Angeles Unified School District, California, General 7/12 at 100.00 AAA 11,639,450
Obligation Bonds, Series 2002E, 5.000%, 7/01/19 -
MBIA Insured
1,250 Los Angeles Unified School District, California, General 7/13 at 100.00 AAA 1,366,513
Obligation Bonds, Series 2003A, 5.250%, 7/01/20 -
FSA Insured
1,375 Lucia Mar Unified School District, San Luis Obispo County, 8/14 at 100.00 Aaa 1,507,110
California, General Obligation Bonds, Series 2004A,
5.250%, 8/01/21 - FGIC Insured
2,000 Puerto Rico, General Obligation and Public Improvement No Opt. Call AAA 2,350,220
Refunding Bonds, Series 2001A, 5.500%, 7/01/20 -
MBIA Insured
4,050 Santa Rosa High School District, Sonoma County, California, 5/11 at 101.00 AAA 4,383,680
General Obligation Bonds, Series 2001, 5.300%, 5/01/26 -
FGIC Insured
1,160 Saugus Union School District, Los Angeles County, California, 8/12 at 100.00 AAA 1,233,846
General Obligation Bonds, Series 2002A, 5.000%, 8/01/21 -
FGIC Insured
2,710 Southwestern Community College District, San Diego County, 8/14 at 100.00 AAA 2,895,716
California, General Obligation Bonds, Series 2004,
5.000%, 8/01/21 - FGIC Insured
40
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 44.1% (30.1% OF TOTAL INVESTMENTS)
$ 9,000 Anitoch Area Public Facilities Financing Agency, California, 8/11 at 100.00 AAA $ 9,657,900
Special Tax Bonds, Community Facilities District 1989-1,
Series 2001, 5.250%, 8/01/25 - MBIA Insured
Beaumont Financing Authority, California, Local Agency
Revenue Bonds, Series 2004D:
650 5.500%, 9/01/24 9/14 at 102.00 N/R 651,918
385 5.800%, 9/01/35 9/14 at 102.00 N/R 386,763
4,500 California, Economic Recovery Revenue Bonds, 7/14 at 100.00 AA- 4,915,530
Series 2004A, 5.000%, 7/01/15
4,900 California State Public Works Board, Lease Revenue Bonds, 12/13 at 100.00 A- 5,467,028
Department of Corrections, Series 2003C, 5.500%, 6/01/16
1,200 Capistrano Unified School District, Orange County, California, 9/13 at 100.00 N/R 1,269,972
Special Tax Bonds, Community Facilities District 90-2,
Talega, Series 2003, 6.000%, 9/01/33
4,000 Daly City Housing Development Finance Agency, California, 12/13 at 102.00 A- 4,160,720
Mobile Home Park Revenue Bonds, Franciscan Mobile
Home Park Project, Series 2002A, 5.850%, 12/15/32
4,845 Encinitas Public Financing Authority, California, Lease 4/08 at 102.00 AAA 5,132,890
Revenue Bonds, Acquisition Project, Series 2001A,
5.250%, 4/01/31 - MBIA Insured
750 Fontana, California, Special Tax Bonds, Sierra Community 9/14 at 100.00 N/R 763,860
Facilities District 22, Series 2004, 6.000%, 9/01/34
4,000 Industry Urban Development Agency, California, Tax 5/07 at 101.50 AAA 4,270,800
Allocation Refunding Bonds, Civic, Recreational and
Industrial Redevelopment Project 1, Series 2002,
5.500%, 5/01/19 - MBIA Insured
2,000 Lake Elsinore Public Financing Authority, California, Local 10/13 at 102.00 N/R 2,063,260
Agency Revenue Refunding Bonds, Series 2003H,
6.000%, 10/01/20
1,265 Lee Lake Water District, Riverside County, California, 9/13 at 102.00 N/R 1,382,721
Special Tax Bonds, Community Facilities District 1 of
Sycamore Creek, Series 2003, 6.500%, 9/01/24
1,320 Lincoln, California, Special Tax Bonds, Lincoln Crossing 9/13 at 102.00 N/R 1,408,532
Community Facilities District 03-1, Series 2003A,
6.500%, 9/01/25
1,000 Lincoln, California, Special Tax Bonds, Lincoln Crossing 9/13 at 102.00 N/R 1,027,840
Community Facilities District 03-1, Series 2004,
6.000%, 9/01/34
8,000 Los Angeles County Metropolitan Transportation Authority, 7/08 at 101.00 AAA 8,367,760
California, Proposition C Second Senior Lien Sales Tax
Revenue Refunding Bonds, Series 1998A,
5.000%, 7/01/23 - AMBAC Insured
5,000 Los Angeles County Metropolitan Transportation Authority, No Opt. Call AAA 5,618,400
California, Proposition C Second Senior Lien Sales Tax
Revenue Refunding Bonds, Series 2003A,
5.250%, 7/01/13 - MBIA Insured
3,295 Oakland Redevelopment Agency, California, Subordinate 3/13 at 100.00 AAA 3,667,796
Lien Tax Allocation Bonds, Central District Redevelopment
Project, Series 2003, 5.500%, 9/01/16 - FGIC Insured
2,000 Orange County, California, Special Tax Bonds, Community 8/11 at 101.00 N/R 2,049,640
Facilities District 02-1 of Ladera Ranch, Series 2003A,
5.550%, 8/15/33
2,000 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call BBB+ 2,395,720
Appropriation Bonds, Series 2002E, 6.000%, 8/01/26
6,000 Riverside County Redevelopment Agency, California, 10/11 at 102.00 AAA 6,381,240
Tax Allocation Bonds, Jurupa Valley Project Area,
Series 2001, 5.250%, 10/01/35 - AMBAC Insured
1,055 Rohnert Park Finance Authority, California, Senior Lien 9/13 at 100.00 BBB 1,067,386
Revenue Bonds, Rancho Feliz Mobile Home Park,
Series 2003A, 5.750%, 9/15/38
700 Rohnert Park Finance Authority, California, Subordinate 9/13 at 100.00 N/R 713,671
Lien Revenue Bonds, Rancho Feliz Mobile Home Park,
Series 2003B, 6.625%, 9/15/38
700 Sacramento, California, Special Tax Bonds, North Natomas 9/14 at 100.00 N/R 725,907
Community Facilities District 4, Series 2003C,
6.000%, 9/01/33
975 San Marcos Public Facilities Authority, California, Special 9/09 at 102.00 N/R 1,003,246
Tax Bonds, Community Facilities District 99-1, Series 2003B,
6.000%, 9/01/24
Santa Clara Valley Transportation Authority, California,
Sales Tax Revenue Bonds, Series 2001A:
16,090 5.000%, 6/01/25 - MBIA Insured 6/11 at 100.00 AAA 16,883,881
2,000 5.000%, 6/01/26 - MBIA Insured 6/11 at 100.00 AAA 2,075,420
41
Nuveen California Dividend Advantage Municipal Fund 2 (NVX) (continued)
Portfolio of INVESTMENTS February 28, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,930 West Patterson Financing Authority, California, Special 9/13 at 103.00 N/R $ 2,063,344
Tax Bonds, Community Facilities District 01-1,
Series 2003B, 6.750%, 9/01/30
850 West Patterson Financing Authority, California, Special 9/13 at 103.00 N/R 867,230
Tax Bonds, Community Facilities District 2001-1,
Series 2004A, 6.125%, 9/01/39
500 West Patterson Financing Authority, California, Special 9/13 at 102.00 N/R 504,065
Tax Bonds, Community Facilities District 01-1,
Series 2004B, 6.000%, 9/01/39
3,045 Yucaipa Redevelopment Agency, California, Mobile Home 5/11 at 102.00 N/R 3,230,532
Park Revenue Bonds, Rancho del Sol and Grandview,
Series 2001A, 6.750%, 5/15/36
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 8.9% (6.1% OF TOTAL INVESTMENTS)
7,000 Foothill/Eastern Transportation Corridor Agency, California, 1/14 at 101.00 BBB- 5,762,610
Toll Road Revenue Refunding Bonds, Series 1999,
0.000%, 1/15/27
5,585 Port of Oakland, California, Revenue Bonds, Series 2002N, 11/12 at 100.00 AAA 5,918,480
5.000%, 11/01/16 (Alternative Minimum Tax) - MBIA Insured
2,000 San Francisco Airports Commission, California, Revenue 5/12 at 100.00 AAA 2,132,000
Refunding Bonds, San Francisco International Airport,
Second Series 2002, Issue 28A, 5.250%, 5/01/17
(Alternative Minimum Tax) - MBIA Insured
San Francisco Airports Commission, California, Revenue Bonds,
San Francisco International Airport, Second Series 2003, Issue 29A:
2,430 5.250%, 5/01/18 (Alternative Minimum Tax) - FGIC Insured 5/13 at 100.00 AAA 2,603,988
2,555 5.250%, 5/01/19 (Alternative Minimum Tax) - FGIC Insured 5/13 at 100.00 AAA 2,730,656
1,000 San Francisco Airports Commission, California, Revenue Bonds, 5/13 at 100.00 AAA 1,080,270
San Francisco International Airport, Second Series 2003,
Issue 29B, 5.125%, 5/01/17 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 3.8% (2.6% OF TOTAL INVESTMENTS)
7,600 Southwestern Community College District, San Diego County, 8/11 at 101.00 AAA 8,603,048
California, General Obligation Bonds, Series 2001,
5.375%, 8/01/25 (Pre-refunded to 8/01/11) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 8.9% (6.0% OF TOTAL INVESTMENTS)
5,000 Anaheim Public Finance Authority, California, Second Lien 10/14 at 100.00 AAA 5,462,400
Electric Distribution Revenue Bonds, Series 2004,
5.250%, 10/01/21 - MBIA Insured
6,000 California Department of Water Resources, Power Supply 5/12 at 101.00 A2 6,444,720
Revenue Bonds, Series 2002A, 5.125%, 5/01/18
Los Angeles Department of Water and Power, California, Power
System Revenue Bonds, Series 2003A-2:
750 5.000%, 7/01/21 - MBIA Insured 7/13 at 100.00 AAA 798,607
1,000 5.000%, 7/01/23 - MBIA Insured 7/13 at 100.00 AAA 1,058,210
3,000 Merced Irrigation District, California, Revenue Refunding 9/05 at 102.00 Baa3 3,087,930
Bonds, Electric System Project, Series 2001,
6.850%, 9/01/36
1,000 Merced Irrigation District, California, Revenue Certificates 9/05 at 103.00 Baa3 1,038,260
of Participation, Electric System Project, Series 2002,
6.500%, 9/01/34
2,000 Santa Clara, California, Subordinate Electric Revenue Bonds, 7/13 at 100.00 AAA 2,186,420
Series 2003A, 5.250%, 7/01/20 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 13.7% (9.3% OF TOTAL INVESTMENTS)
2,740 California Department of Water Resources, Water System 12/12 at 100.00 AAA 2,963,009
Revenue Bonds, Central Valley Project, Series 2002Z,
5.000%, 12/01/18 - FGIC Insured
4,900 East Bay Municipal Utility District, Alameda and Contra 6/11 at 100.00 AAA 5,084,779
Costa Counties, California, Water System Subordinated
Revenue Bonds, Series 2001, 5.000%, 6/01/26 - MBIA Insured
42
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 2,655 El Dorado Irrigation District, California, Water and Sewer 3/14 at 100.00 AAA $ 2,832,434
Certificates of Participation, Series 2004A, 5.000%, 3/01/20 -
FGIC Insured
1,700 San Buenaventura, California, Wastewater Revenue 3/14 at 100.00 AAA 1,786,156
Certificates of Participation, Series 2004, 5.000%, 3/01/24 -
MBIA Insured
6,885 San Diego Public Facilities Financing Authority, California, 8/12 at 100.00 AAA 7,323,297
Subordinate Lien Water Revenue Bonds, Series 2002,
5.000%, 8/01/21 - MBIA Insured
10,000 San Francisco City and County Public Utilities Commission, 4/13 at 100.00 AAA 10,941,800
California, Clean Water Revenue Refunding Bonds,
Series 2003A, 5.250%, 10/01/20 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 313,067 Total Long-Term Investments (cost $316,791,709) - 146.9% 332,565,169
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.7% 3,819,493
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (48.6)% (110,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 226,384,662
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
* 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.
** Ratings: Using the higher of Standard & Poor's or Moody's
rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of principal and
interest.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
43
Nuveen California Dividend Advantage Municipal Fund 3 (NZH)
Portfolio of
INVESTMENTS February 28, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 5.8% (3.8% OF TOTAL INVESTMENTS)
$ 11,240 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 Baa3 $ 10,750,498
Settlement Asset-Backed Bonds, Merced County Tobacco
Funding Corporation, Series 2002A, 5.500%, 6/01/33
6,100 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB 6,221,756
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.250%, 6/01/33
4,200 Southern California Tobacco Securitization Authority, Tobacco 6/12 at 100.00 BBB 3,913,098
Settlement Asset-Backed Bonds, Senior Series 2001A,
5.500%, 6/01/36
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 7.7% (5.1% OF TOTAL INVESTMENTS)
3,825 California Educational Facilities Authority, Student Loan 3/08 at 102.00 Aaa 4,023,823
Revenue Bonds, Cal Loan Program, Series 2001A,
5.400%, 3/01/21 (Alternative Minimum Tax) - MBIA Insured
3,600 California State Public Works Board, Lease Revenue Bonds, 10/12 at 100.00 AAA 3,947,112
University of California System, Series 2002A,
5.375%, 10/01/17 - FSA Insured
620 California Statewide Community Development Authority, 10/13 at 100.00 N/R 612,058
Revenue Bonds, Notre Dame de Namur University,
Series 2003, 6.500%, 10/01/23
7,595 San Francisco State University Foundation Inc., California, 9/11 at 100.00 AAA 7,930,547
Auxiliary Organization Student Housing Revenue Bonds,
Series 2001, 5.000%, 9/01/26 - MBIA Insured
2,990 University of California, Revenue Bonds, Multiple Purpose 9/08 at 101.00 AA 3,081,763
Projects, Series 2000K, 5.000%, 9/01/23
3,820 University of California, Revenue Bonds, Research Facilities, 9/09 at 101.00 AAA 3,959,239
Series 2001E, 5.000%, 9/01/26 - AMBAC Insured
4,000 University of California, Revenue Bonds, Multi-Purpose 5/13 at 100.00 AAA 4,231,800
Projects, Series 2003A, 5.000%, 5/15/23 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 12.4% (8.3% OF TOTAL INVESTMENTS)
California Health Facilities Financing Authority, Revenue
Bonds, Casa Colina Inc., Series 2001:
4,000 6.000%, 4/01/22 4/12 at 100.00 BBB+ 4,254,560
2,000 6.125%, 4/01/32 4/12 at 100.00 BBB+ 2,106,380
9,000 California Infrastructure Economic Development Bank, Revenue 8/11 at 102.00 A 9,528,120
Bonds, Kaiser Hospital Assistance LLC, Series 2001A,
5.550%, 8/01/31
7,665 California Statewide Community Development Authority, 11/09 at 102.00 A 8,142,530
Insured Mortgage Hospital Revenue Bonds, Mission
Community Hospital, Series 2001, 5.375%, 11/01/21
6,525 California Statewide Community Development Authority, No Opt. Call A 7,473,017
Health Facility Revenue Refunding Bonds, Memorial Health
Services, Series 2003A, 6.000%, 10/01/12
6,450 California Statewide Community Development Authority, 6/13 at 100.00 AAA 7,018,955
Hospital Revenue Bonds, Monterey Peninsula Hospital,
Series 2003B, 5.250%, 6/01/18 - FSA Insured
Central California Joint Powers Health Finance Authority,
Certificates of Participation, Community Hospitals of Central
California Obligated Group, Series 2000:
1,770 6.000%, 2/01/20 2/10 at 101.00 Baa2 1,867,669
1,740 6.000%, 2/01/30 2/10 at 101.00 Baa2 1,812,001
2,500 Whittier, California, Health Facility Revenue Bonds, 6/12 at 101.00 A 2,667,550
Presbyterian Intercommunity Hospital, Series 2002,
5.600%, 6/01/22
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 8.7% (5.8% OF TOTAL INVESTMENTS)
ABAG Finance Authority for Non-Profit Corporations, California,
Multifamily Housing Revenue Refunding Bonds, United
Dominion/2000 Post Apartments, Series 2000B:
4,750 6.400%, 8/15/30 (Alternative Minimum Tax) (Mandatory put 8/15/08) No Opt. Call Baa2 5,133,943
4,000 6.250%, 8/15/30 (Mandatory put 8/15/08) No Opt. Call Baa2 4,344,000
5,235 California Statewide Community Development Authority, 8/12 at 105.00 Aaa 5,832,732
GNMA Collateralized Housing Revenue Refunding Bonds,
Crowne Pointe Project, Series 2002F, 6.750%, 8/20/37
44
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY (continued)
$ 7,500 San Bernardino County Housing Authority, California, No Opt. Call BBB+ $ 7,984,800
Multifamily Housing Revenue Refunding Bonds,
Equity Residential Properties/Redlands Lawn and Tennis
Apartments, Series 1999A, 5.200%, 6/15/29
(Mandatory put 6/15/09)
3,610 San Bernardino County Housing Authority, California, 11/11 at 105.00 Aaa 3,894,757
GNMA Collateralized Multifamily Mortgage Revenue Bonds,
Pacific Palms Mobile Home Park, Series 2001A,
6.700%, 12/20/41
San Jose, California, Multifamily Housing Revenue Bonds, GNMA
Mortgage-Backed Securities Program, Lenzen Housing, Series 2001B:
1,250 5.350%, 2/20/26 (Alternative Minimum Tax) 8/11 at 102.00 AAA 1,295,913
2,880 5.450%, 2/20/43 (Alternative Minimum Tax) 8/11 at 102.00 AAA 2,965,219
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.3% (0.9% OF TOTAL INVESTMENTS)
4,715 California Pollution Control Financing Authority, Solid Waste No Opt. Call BBB 4,735,463
Disposal Revenue Bonds, Waste Management Inc.,
Series 2002B, 4.450%, 7/01/27 (Alternative Minimum Tax)
(Mandatory put 7/01/05)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.5% (1.0% OF TOTAL INVESTMENTS)
California Health Facilities Financing Authority, Insured Senior
Living Revenue Bonds/Aldersly, Series 2002A:
1,500 5.125%, 3/01/22 3/12 at 101.00 A 1,569,120
1,315 5.250%, 3/01/32 3/12 at 101.00 A 1,370,375
2,450 California Health Facilities Financing Authority, Insured 1/13 at 100.00 A 2,560,789
Revenue Bonds, Northern California Retired Officers
Community Corporation - Paradise Valley Estates,
Series 2002, 5.125%, 1/01/22
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 31.0% (20.6% OF TOTAL INVESTMENTS)
8,500 California, General Obligation Veterans Welfare Bonds, 6/05 at 101.00 AA- 8,570,550
Series 1997BH, 5.500%, 12/01/18 (Alternative Minimum Tax)
10 California, General Obligation Veterans Welfare Bonds, 12/06 at 102.00 AA- 10,470
Series 1997BJ, 5.500%, 12/01/18 (Alternative Minimum Tax)
9,335 California, General Obligation Bonds, Series 2002, No Opt. Call AAA 11,106,316
6.000%, 2/01/16 - FSA Insured
California, General Obligation Refunding Bonds, Series 2002:
8,450 5.000%, 2/01/12 No Opt. Call A 9,204,332
2,780 6.000%, 4/01/16 - AMBAC Insured No Opt. Call AAA 3,322,267
14,300 California, General Obligation Veterans Welfare Bonds, 6/07 at 101.00 AAA 14,644,773
Series 2001BZ, 5.350%, 12/01/21 (Alternative Minimum
Tax) - MBIA Insured
9,000 California, General Obligation Bonds, Series 2004, 4/14 at 100.00 A 9,550,080
5.125%, 4/01/23
1,840 Compton Unified School District, Los Angeles County, 9/13 at 100.00 AAA 2,028,471
California, General Obligation Bonds, Series 2003A,
5.250%, 9/01/18 - MBIA Insured
3,000 Contra Costa County Community College District, California, 8/12 at 100.00 AAA 3,163,380
General Obligation Bonds, Series 2002, 5.000%, 8/01/23 -
FGIC Insured
2,500 Fullerton Joint Union High School District, Orange County, 8/12 at 100.00 Aaa 2,635,700
California, General Obligation Bonds, Series 2002A,
5.000%, 8/01/23 - FSA Insured
2,260 Jurupa Unified School District, Riverside County, California, 8/11 at 101.00 AAA 2,426,246
General Obligation Bonds, Series 2002, 5.125%, 8/01/22 -
FGIC Insured
Los Angeles Unified School District, California, General
Obligation Bonds, Series 2003A:
3,750 5.250%, 7/01/20 - FSA Insured 7/13 at 100.00 AAA 4,099,538
7,200 5.000%, 7/01/22 - FSA Insured 7/13 at 100.00 AAA 7,631,064
1,525 Lucia Mar Unified School District, San Luis Obispo County, 8/14 at 100.00 Aaa 1,666,520
California, General Obligation Bonds, Series 2004A,
5.250%, 8/01/22 - FGIC Insured
2,710 Pajaro Valley Unified School District, Santa Cruz County, 8/13 at 100.00 AAA 2,872,871
California, General Obligation Bonds, Series 2003,
5.000%, 8/01/22 - FSA Insured
870 Puerto Rico, General Obligation and Public Improvement Bonds, 7/11 at 100.00 AAA 923,261
Series 2001, 5.000%, 7/01/24 - FSA Insured
5,000 Riverside Unified School District, Riverside County, California, 2/12 at 101.00 AAA 5,214,000
General Obligation Bonds, Series 2002A, 5.000%, 2/01/27 -
FGIC Insured
45
Nuveen California Dividend Advantage Municipal Fund 3 (NZH) (continued)
Portfolio of INVESTMENTS February 28, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 10,810 San Diego Unified School District, San Diego County, 7/11 at 102.00 AAA $ 11,331,258
California, General Obligation Bonds, Election of 1998,
Series 2001C, 5.000%, 7/01/26 - FSA Insured
4,000 San Diego Unified School District, San Diego County, 7/12 at 101.00 AAA 4,493,000
California, General Obligation Bonds, Election of 1998,
Series 2002D, 5.250%, 7/01/21 - FGIC Insured
1,000 Saugus Union School District, Los Angeles County, California, 8/12 at 100.00 AAA 1,050,940
General Obligation Bonds, Series 2002A, 5.000%, 8/01/24 -
FGIC Insured
3,905 Southwestern Community College District, San Diego County, 8/14 at 100.00 AAA 4,156,912
California, General Obligation Bonds, Series 2004,
5.000%, 8/01/22 - FGIC Insured
1,630 West Contra Costa Unified School District, Contra Costa 8/11 at 101.00 AAA 1,725,714
County, California, General Obligation Bonds, Series 2003C,
5.000%, 8/01/22 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 44.1% (29.3% OF TOTAL INVESTMENTS)
4,000 Beaumont Financing Authority, California, Local Agency Revenue 9/12 at 102.00 N/R 4,206,080
Bonds, Series 2002A, 6.750%, 9/01/25
7,135 Brentwood Infrastructure Financing Authority, Contra Costa 11/11 at 100.00 AAA 7,491,821
County, California, Capital Improvement Revenue Bonds,
Series 2001, 5.000%, 11/01/25 - FSA Insured
7,350 California, Economic Recovery Revenue Bonds, Series 2004A, 7/14 at 100.00 AA- 8,028,699
5.000%, 7/01/15
3,350 California State Public Works Board, Lease Revenue Bonds, 12/12 at 100.00 AAA 3,644,197
Department of General Services, Capital East End Project,
Series 2002A, 5.250%, 12/01/17 - AMBAC Insured
8,210 California State Public Works Board, Lease Revenue Bonds, 12/13 at 100.00 A- 9,160,061
Department of Corrections, Series 2003C, 5.500%, 6/01/16
4,510 California State Public Works Board, Lease Revenue Bonds, 12/11 at 102.00 AAA 4,723,007
Department of Mental Health, Hospital Addition,
Series 2001A, 5.000%, 12/01/26 - AMBAC Insured
9,000 California State Public Works Board, Lease Revenue Bonds, 3/12 at 100.00 AAA 9,325,350
Department of General Services, Series 2002B,
5.000%, 3/01/27 - AMBAC Insured
Capistrano Unified School District, Orange County, California,
Special Tax Bonds, Community Facilities District 90-2, Talega,
Series 2003:
1,750 5.875%, 9/01/23 9/13 at 100.00 N/R 1,860,670
550 6.000%, 9/01/33 9/13 at 100.00 N/R 582,071
1,810 Cerritos Public Financing Authority, California, Tax Allocation No Opt. Call AAA 1,993,317
Revenue Bonds, Los Cerritos Redevelopment Projects,
Series 2002A, 5.000%, 11/01/14 - AMBAC Insured
1,270 Coalinga Public Financing Authority, California, Local No Opt. Call AAA 1,526,985
Obligation Senior Lien Revenue Bonds, Series 1998A,
6.000%, 9/15/18 - AMBAC Insured
2,000 Daly City Housing Development Finance Agency, California, 12/13 at 102.00 A- 2,123,840
Mobile Home Park Revenue Bonds, Franciscan Mobile Home
Park Project, Series 2002A, 5.800%, 12/15/25
1,125 Fontana, California, Special Tax Bonds, Sierra Community 9/14 at 100.00 N/R 1,145,790
Facilities District 22, Series 2004, 6.000%, 9/01/34
1,000 Fullerton Community Facilities District 1, California, Special 9/12 at 100.00 N/R 1,043,800
Tax Bonds, Amerige Heights, Series 2002, 6.100%, 9/01/22
3,000 Lake Elsinore Public Financing Authority, California, Local 10/13 at 102.00 N/R 3,094,890
Agency Revenue Refunding Bonds, Series 2003H,
6.000%, 10/01/20
5,250 Lammersville School District, San Joaquin County, 9/12 at 101.00 N/R 5,594,348
California, Special Tax Bonds, Community Facilities District
of Mountain House, Series 2002, 6.300%, 9/01/24
2,000 Lee Lake Water District, Riverside County, California, Special 9/13 at 102.00 N/R 2,186,120
Tax Bonds, Community Facilities District 1 of Sycamore
Creek, Series 2003, 6.500%, 9/01/24
2,200 Lincoln, California, Special Tax Bonds, Lincoln Crossing 9/13 at 102.00 N/R 2,347,554
Community Facilities District 03-1, Series 2003A,
6.500%, 9/01/25
1,500 Lincoln, California, Special Tax Bonds, Lincoln Crossing 9/13 at 102.00 N/R 1,541,760
Community Facilities District 03-1, Series 2004,
6.000%, 9/01/34
5,425 Lodi, California, Certificates of Participation, Public 10/12 at 100.00 AAA 5,645,364
Improvement Financing Project, Series 2002,
5.000%, 10/01/26 - MBIA Insured
4,075 Los Angeles County Metropolitan Transportation Authority, No Opt. Call AAA 4,578,996
California, Proposition C Second Senior Lien Sales Tax
Revenue Refunding Bonds, Series 2003A,
5.250%, 7/01/13 - MBIA Insured
46
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,000 Monterey County, California, Certificates of Participation, 8/11 at 100.00 Aaa $ 1,095,970
Master Plan Financing, Series 2001, 5.250%, 8/01/15 -
MBIA Insured
1,675 Moreno Valley Unified School District, Riverside County, 3/14 at 100.00 AAA 1,753,524
California, Certificates of Participation, Series 2005,
5.000%, 3/01/26 - FSA Insured
1,000 Norco, California, Special Tax Bonds, Community Facilities 9/12 at 102.00 N/R 1,044,170
District 01-1, Series 2002, 6.750%, 9/01/22
3,000 Oakland Redevelopment Agency, California, Subordinate 3/13 at 100.00 AAA 3,324,180
Lien Tax Allocation Bonds, Central District Redevelopment
Project, Series 2003, 5.500%, 9/01/19 - FGIC Insured
4,520 Ontario Redevelopment Financing Authority, California, Lease 8/11 at 101.00 AAA 4,749,706
Revenue Bonds, Capital Projects, Series 2001,
5.000%, 8/01/24 - AMBAC Insured
2,000 Orange County, California, Special Tax Bonds, Community 8/11 at 101.00 N/R 2,049,640
Facilities District 02-1 of Ladera Ranch, Series 2003A,
5.550%, 8/15/33
11,165 Palm Desert Financing Authority, California, Tax Allocation 4/12 at 102.00 AAA 11,686,182
Revenue Refunding Bonds, Project Area 1, Series 2002,
5.100%, 4/01/30 - MBIA Insured
3,250 Pomoma Public Financing Authority, California, Revenue 2/11 at 100.00 AAA 3,348,053
Refunding Bonds, Merged Redevelopment Projects,
Series 2001AD, 5.000%, 2/01/27 - MBIA Insured
5,500 Puerto Rico Highway and Transportation Authority, Highway 7/12 at 100.00 A 5,856,070
Revenue Bonds, Series 2002D, 5.375%, 7/01/36
1,735 Rohnert Park Finance Authority, California, Senior Lien 9/13 at 100.00 BBB 1,755,369
Revenue Bonds, Rancho Feliz Mobile Home Park,
Series 2003A, 5.750%, 9/15/38
1,125 Rohnert Park Finance Authority, California, Subordinate Lien 9/13 at 100.00 N/R 1,146,971
Revenue Bonds, Rancho Feliz Mobile Home Park,
Series 2003B, 6.625%, 9/15/38
1,700 Roseville, California, Special Tax Bonds, Community Facilities 9/09 at 103.00 N/R 1,748,025
District 1 - Crocker, Series 2003, 6.000%, 9/01/27
1,150 Sacramento, California, Special Tax Bonds, North Natomas 9/14 at 100.00 N/R 1,192,561
Community Facilities District 4, Series 2003C, 6.000%, 9/01/33
14,505 San Diego Redevelopment Agency, California, Subordinate 9/11 at 101.00 AAA 15,131,471
Lien Tax Allocation Bonds, Centre City Project, Series 2001A,
5.000%, 9/01/26 - FSA Insured
8,725 San Francisco Bay Area Rapid Transit District, California, 7/11 at 100.00 AAA 9,057,946
Sales Tax Revenue Bonds, Series 2001, 5.000%, 7/01/26 -
AMBAC Insured
1,595 San Marcos Public Facilities Authority, California, Special 9/09 at 102.00 N/R 1,641,207
Tax Bonds, Community Facilities District 99-1, Series 2003B,
6.000%, 9/01/24
1,595 Santa Clara Valley Transportation Authority, California, 6/11 at 100.00 AAA 1,687,781
Sales Tax Revenue Bonds, Series 2001A, 5.000%, 6/01/22 -
MBIA Insured
2,810 West Patterson Financing Authority, California, Special 9/13 at 103.00 N/R 3,057,533
Tax Bonds, Community Facilities District 01-1, Series 2003B,
7.000%, 9/01/38
1,375 West Patterson Financing Authority, California, Special 9/13 at 103.00 N/R 1,402,871
Tax Bonds, Community Facilities District 2001-1,
Series 2004A, 6.125%, 9/01/39
2,000 West Patterson Financing Authority, California, Special 9/13 at 102.00 N/R 2,016,260
Tax Bonds, Community Facilities District 01-1, Series 2004B,
6.000%, 9/01/39
2,500 Yucaipa-Calimesa Joint Unified School District, 10/11 at 100.00 AAA 2,589,975
San Bernardino County, California, General Obligation
Refunding Bonds, Series 2001A, 5.000%, 10/01/26 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 9.4% (6.2% OF TOTAL INVESTMENTS)
11,750 Foothill/Eastern Transportation Corridor Agency, California, 1/14 at 101.00 BBB- 9,642,872
Toll Road Revenue Refunding Bonds, Series 1999,
0.000%, 1/15/28
1,500 Port of Oakland, California, Revenue Refunding Bonds, 11/07 at 102.00 AAA 1,633,065
Series 1997I, 5.600%, 11/01/19 - MBIA Insured
1,000 Port of Oakland, California, Revenue Bonds, Series 2002M, 11/12 at 100.00 AAA 1,094,510
5.250%, 11/01/20 - FGIC Insured
San Francisco Airports Commission, California, Revenue Bonds,
San Francisco International Airport, Second Series 2003, Issue 29B:
4,110 5.125%, 5/01/17 - FGIC Insured 5/13 at 100.00 AAA 4,439,910
10,625 5.125%, 5/01/18 - FGIC Insured 5/13 at 100.00 AAA 11,454,706
5,140 5.125%, 5/01/19 - FGIC Insured 5/13 at 100.00 AAA 5,522,827
47
Nuveen California Dividend Advantage Municipal Fund 3 (NZH) (continued)
Portfolio of INVESTMENTS February 28, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 1.1% (0.7% OF TOTAL INVESTMENTS)
$ 1,380 Puerto Rico, General Obligation and Public Improvement 7/11 at 100.00 AAA $ 1,518,580
Bonds, Series 2001, 5.000%, 7/01/24 (Pre-refunded to
7/01/11) - FSA Insured
2,085 San Marcos Public Facilities Authority, California, Special 9/07 at 102.00 N/R*** 2,299,567
Tax Revenue Bonds, Community Facilities District 99-1,
Series 2002, 6.300%, 9/01/20 (Pre-refunded to 9/01/07)
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 13.0% (8.7% OF TOTAL INVESTMENTS)
15,000 California Pollution Control Financing Authority, Remarketed 4/11 at 102.00 AAA 16,212,600
Revenue Bonds, Pacific Gas and Electric Company,
Series 1996A, 5.350%, 12/01/16 (Alternative Minimum
Tax) - MBIA Insured
California Department of Water Resources, Power Supply
Revenue Bonds, Series 2002A:
3,500 5.375%, 5/01/17 - XLCA Insured 5/12 at 101.00 AAA 3,887,345
9,000 5.125%, 5/01/18 5/12 at 101.00 A2 9,667,080
1,200 Los Angeles Department of Water and Power, California, 7/13 at 100.00 AAA 1,277,772
Power System Revenue Bonds, Series 2003A-2,
5.000%, 7/01/21 - MBIA Insured
1,600 Merced Irrigation District, California, Revenue Certificates 9/05 at 103.00 Baa3 1,661,216
of Participation, Electric System Project, Series 2002,
6.500%, 9/01/34
5,000 Merced Irrigation District, California, Revenue Certificates 9/13 at 102.00 Baa3 5,215,650
of Participation, Electric System Project, Series 2003,
5.700%, 9/01/36
2,250 Salinas Valley Solid Waste Authority, California, Revenue 8/12 at 100.00 AAA 2,355,480
Bonds, Series 2002, 5.125%, 8/01/22 (Alternative
Minimum Tax) - AMBAC Insured
6,085 Southern California Public Power Authority, Revenue Bonds, 7/13 at 100.00 AAA 6,676,219
Magnolia Power Project, Series 2003-1A, 5.250%, 7/01/16 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 13.8% (9.2% OF TOTAL INVESTMENTS)
1,070 Burbank, California, Wastewater System Revenue Bonds, 6/14 at 100.00 AAA 1,133,772
Series 2004A, 5.000%, 6/01/22 - AMBAC Insured
8,000 California Department of Water Resources, Water System 6/13 at 100.00 AAA 8,970,560
Revenue Bonds, Central Valley Project, Series 2003Y,
5.250%, 12/01/13 - FGIC Insured
7,000 Carmichael Water District, Sacramento County, California, 9/09 at 102.00 AAA 7,262,430
Water Revenue Certificates of Participation, Series 1999,
5.125%, 9/01/29 - MBIA Insured
2,000 El Dorado Irrigation District, California, Water and 3/14 at 100.00 AAA 2,133,660
Sewer Certificates of Participation, Series 2004A,
5.000%, 3/01/20 - FGIC Insured
1,000 Pico Rivera Water Authority, California, Revenue Bonds, 12/11 at 102.00 N/R 1,072,660
Series 2001A, 6.250%, 12/01/32
1,000 San Buenaventura, California, Wastewater Revenue 3/14 at 100.00 AAA 1,050,680
Certificates of Participation, Series 2004, 5.000%, 3/01/24 -
MBIA Insured
San Diego Public Facilities Financing Authority, California,
Subordinate Lien Water Revenue Bonds, Series 2002:
2,500 5.000%, 8/01/23 - MBIA Insured 8/12 at 100.00 AAA 2,636,150
6,260 5.000%, 8/01/24 - MBIA Insured 8/12 at 100.00 AAA 6,578,884
San Francisco City and County Public Utilities Commission,
California, Clean Water Revenue Refunding Bonds, Series 2003A:
3,315 5.250%, 10/01/18 - MBIA Insured 4/13 at 100.00 AAA 3,654,290
12,000 5.250%, 10/01/19 - MBIA Insured 4/13 at 100.00 AAA 13,174,680
1,955 Westlands Water District, California, Revenue Certificates 3/15 at 100.00 AAA 2,069,424
of Participation, Series 2005A, 5.000%, 9/01/23 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 510,980 Total Long-Term Investments (cost $520,719,732) - 149.8% 540,534,024
=============-----------------------------------------------------------------------------------------------------------------------
48
PRINCIPAL MARKET
AMOUNT (000) DESCRIPTION(1) RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.6% (0.4% OF TOTAL INVESTMENTS)
$ 2,000 Pittsburg Redevelopment Agency, California, Tax Allocation A-1+ $ 2,000,000
Bonds, Los Medanos Community Development Project,
Variable Rate Demand Obligations, Series 2004A,
1.760%, 9/01/35 - AMBAC Insured+
------------------------------------------------------------------------------------------------------------------------------------
$ 2,000 Total Short-Term Investments (cost $2,000,000) 2,000,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $522,719,732) - 150.4% 542,534,024
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.4% 5,189,749
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (51.8)% (187,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 360,723,773
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
* 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.
** Ratings: Using the higher of Standard & Poor's or Moody's
rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of principal and
interest. Such securities are normally considered to be
equivalent to AAA rated securities.
N/R Investment is not rated.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that in effect at
the end of the reporting period. This rate changes
periodically based on market conditions or a specified
market index.
See accompanying notes to financial statements.
49
Nuveen Insured California Dividend Advantage Municipal Fund (NKL)
Portfolio of
INVESTMENTS February 28, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.2% (1.5% OF TOTAL INVESTMENTS)
$ 4,500 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB $ 5,174,685
Tobacco Settlement Asset-Backed Revenue Bonds,
Series 2003A-2, 7.900%, 6/01/42
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 9.1% (6.1% OF TOTAL INVESTMENTS)
1,675 California Educational Facilities Authority, Revenue Bonds, 10/12 at 100.00 A2 1,744,580
University of San Diego, Series 2002A, 5.250%, 10/01/30
9,000 California State University, Systemwide Revenue Bonds, 11/12 at 100.00 AAA 9,465,480
Series 2002A, 5.125%, 11/01/26 - AMBAC Insured
1,000 California Statewide Community Development Authority, 8/12 at 100.00 A 1,056,030
Student Housing Revenue Bonds, EAH - Irvine East Campus
Apartments, LLC Project, Series 2002A,
5.500%, 8/01/22 - ACA Insured
9,000 University of California, Revenue Bonds, Multiple Purpose 9/08 at 101.00 AA 9,327,510
Projects, Series 2000K, 5.300%, 9/01/30
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 8.1% (5.4% OF TOTAL INVESTMENTS)
5,000 ABAG Finance Authority for Non-Profit Corporations, 4/12 at 100.00 A 5,378,000
California, Insured Revenue Bonds, Sansum-Santa Barbara
Medical Foundation Clinic, Series 2002A, 5.600%, 4/01/26
California Health Facilities Financing Authority, Revenue Bonds,
Cedars-Sinai Medical Center, Series 1999A:
2,500 6.125%, 12/01/30 12/09 at 101.00 A3 2,709,625
3,000 6.250%, 12/01/34 12/09 at 101.00 A3 3,274,260
2,815 California Health Facilities Financing Authority, Revenue 8/13 at 100.00 AAA 2,983,224
Bonds, Lucile Salter Packard Hospital, Series 2003C,
5.000%, 8/15/20 - AMBAC Insured
1,090 California State Public Works Board, Revenue Bonds, 11/14 at 100.00 AAA 1,156,457
University of California - Davis Medical Center,
Series 2004II-A, 5.000%, 11/01/21 - MBIA Insured
3,380 Rancho Mirage Joint Powers Financing Authority, 7/14 at 100.00 A3 3,645,431
California, Revenue Bonds, Eisenhower Medical Center,
Series 2004, 5.875%, 7/01/26
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 0.9% (0.5% OF TOTAL INVESTMENTS)
1,905 Los Angeles, California, GNMA Mortgage-Backed Securities 7/11 at 102.00 AAA 2,045,551
Program Multifamily Housing Revenue Bonds, Park Plaza
West Senior Apartments, Series 2001B, 5.300%, 1/20/21
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.3% (0.9% OF TOTAL INVESTMENTS)
3,000 California Pollution Control Financing Authority, Solid Waste No Opt. Call BBB+ 3,155,280
Disposal Revenue Bonds, Republic Services Inc., Series 2002C,
5.250%, 6/01/23 (Alternative Minimum Tax) (Mandatory
put 12/01/17)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 3.5% (2.4% OF TOTAL INVESTMENTS)
3,000 ABAG Finance Authority for Non-Profit Corporations, 11/12 at 100.00 A 3,157,950
California, Insured Senior Living Revenue Bonds, Odd
Fellows Home of California, Series 2003A, 5.200%, 11/15/22
5,000 California Statewide Community Development Authority, 11/13 at 100.00 A 5,257,400
Revenue Bonds, Jewish Home for the Aging, Series 2003,
5.000%, 11/15/18
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 35.4% (23.9% OF TOTAL INVESTMENTS)
5,920 Cajon Valley Union School District, San Diego County, 8/10 at 102.00 AAA 6,175,803
California, General Obligation Bonds, Series 2002B,
5.125%, 8/01/32 - MBIA Insured
California, General Obligation Refunding Bonds, Series 2002:
1,000 6.000%, 4/01/16 - AMBAC Insured No Opt. Call AAA 1,195,060
9,000 5.000%, 2/01/22 - MBIA Insured 2/12 at 100.00 AAA 9,425,700
2,900 California, General Obligation Bonds, Series 2003, 5.000%, 2/01/21 8/13 at 100.00 A 3,051,525
Compton Community College District, Los Angeles County,
California, General Obligation Bonds, Series 2004A:
2,315 5.250%, 7/01/22 - MBIA Insured 7/14 at 100.00 AAA 2,528,211
2,560 5.250%, 7/01/23 - MBIA Insured 7/14 at 100.00 AAA 2,785,382
2,415 El Monte Union High School District, Los Angeles County, 6/13 at 100.00 AAA 2,516,816
California, General Obligation Bonds, Series 2003A,
5.000%, 6/01/28 - FSA Insured
50
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 10,000 Fremont Unified School District, Alameda County, California, 8/12 at 101.00 AAA $ 10,499,400
General Obligation Bonds, Series 2002A, 5.000%, 8/01/25 -
FGIC Insured
5,000 Los Angeles Unified School District, California, General 7/12 at 100.00 AAA 5,245,800
Obligation Bonds, Series 2002E, 5.125%, 1/01/27 -
MBIA Insured
Los Angeles Unified School District, California, General
Obligation Bonds, Series 2003A:
4,700 5.000%, 7/01/22 - FSA Insured 7/13 at 100.00 AAA 4,981,389
3,500 5.000%, 1/01/28 - MBIA Insured 7/13 at 100.00 AAA 3,653,790
1,500 Madera Unified School District, Madera County, California, 8/12 at 100.00 AAA 1,557,870
General Obligation Bonds, Series 2002, 5.000%, 8/01/28 -
FSA Insured
2,500 Oakland Unified School District, Alameda County, California, 8/12 at 100.00 AAA 2,731,525
General Obligation Bonds, Series 2002, 5.250%, 8/01/21 -
FGIC Insured
3,300 Peralta Community College District, Alameda County, 8/09 at 102.00 AAA 3,399,429
California, General Obligation Bonds, Election of 2000,
Series 2001A, 5.000%, 8/01/31 - FGIC Insured
3,250 San Diego Unified School District, San Diego County, 7/11 at 102.00 AAA 3,440,580
California, General Obligation Bonds, Election of 1998,
Series 2001C, 5.000%, 7/01/22 - FSA Insured
1,160 San Gabriel Unified School District, Los Angeles County, 8/15 at 100.00 AAA 1,241,200
California, General Obligation Bonds, Series 2005,
5.000%, 8/01/22 - FSA Insured
3,500 San Mateo County Community College District, California, 9/12 at 100.00 AAA 3,654,630
General Obligation Bonds, Series 2002A, 5.000%, 9/01/26 -
FGIC Insured
2,980 Santa Clarita Community College District, Los Angeles 8/11 at 101.00 AAA 3,135,735
County, California, General Obligation Bonds, Series 2002,
5.125%, 8/01/26 - FGIC Insured
2,460 Vacaville Unified School District, Solano County, California, 8/11 at 101.00 AAA 2,567,600
General Obligation Bonds, Series 2002, 5.000%, 8/01/26 -
FSA Insured
10,000 Vista Unified School District, San Diego County, California, 8/12 at 100.00 AAA 10,544,600
General Obligation Bonds, Series 2002A, 5.000%, 8/01/23 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 41.7% (28.2% OF TOTAL INVESTMENTS)
1,450 Baldwin Park Public Financing Authority, California, Sales 8/13 at 102.00 BBB 1,507,029
Tax and Tax Allocation Bonds, Puente Merced Redevelopment
Project, Series 2003, 5.250%, 8/01/21
6,895 Brea and Olinda Unified School District, Orange County, 8/11 at 101.00 AAA 7,228,511
California, Certificates of Participation Refunding,
Series 2002A, 5.125%, 8/01/26 - FSA Insured
2,290 Burbank Public Financing Authority, California, Revenue 12/13 at 100.00 AAA 2,502,260
Refunding Bonds, Golden State Redevelopment Project,
Series 2003A, 5.250%, 12/01/19 - AMBAC Insured
2,200 California Infrastructure Economic Development Bank, 9/13 at 101.00 AAA 2,297,306
Los Angeles County, Revenue Bonds, Department of Public
Social Services, Series 2003, 5.000%, 9/01/28 -
AMBAC Insured
3,100 California State Public Works Board, Lease Revenue Bonds, 12/13 at 100.00 A- 3,454,578
Department of Corrections, Series 2003C, 5.500%, 6/01/15
7,035 Corona-Norco Unified School District, Riverside County, 9/13 at 100.00 AAA 7,319,214
California, Special Tax Bonds, Community Facilities
District 98-1, Series 2003, 5.000%, 9/01/28 - MBIA Insured
3,145 Culver City Redevelopment Agency, California, Tax Allocation 5/11 at 101.00 AAA 3,298,602
Revenue Bonds, Redevelopment Project, Series 2002A,
5.125%, 11/01/25 - MBIA Insured
1,020 Desert Sands Unified School District, Riverside County, 3/12 at 101.00 AAA 1,085,790
California, Certificates of Participation Refunding,
Series 2002, 5.000%, 3/01/20 - MBIA Insured
8,720 El Monte, California, Senior Lien Certificates of Participation, 1/11 at 100.00 AAA 9,075,253
Department of Public Services Facility Phase II, Series 2001,
5.000%, 1/01/21 - AMBAC Insured
4,000 Folsom Public Financing Authority, California, Special Tax 9/12 at 102.00 AAA 4,256,800
Revenue Bonds, Series 2004A, 5.000%, 9/01/21 -
AMBAC Insured
2,115 Inglewood Redevelopment Agency, California, Tax Allocation No Opt. Call AAA 2,371,909
Refunding Bonds, Merged Area Redevelopment Project,
Series 1998A, 5.250%, 5/01/23 - AMBAC Insured
3,500 La Quinta Redevelopment Agency, California, Tax Allocation 9/11 at 102.00 AAA 3,649,835
Bonds, Redevelopment Project Area 1, Series 2001,
5.100%, 9/01/31 - AMBAC Insured
3,400 La Quinta Redevelopment Agency, California, Tax Allocation 9/12 at 102.00 AAA 3,604,578
Bonds, Redevelopment Project Area 1, Series 2002,
5.000%, 9/01/22 - AMBAC Insured
51
Nuveen Insured California Dividend Advantage Municipal Fund (NKL) (continued)
Portfolio of INVESTMENTS February 28, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,460 Los Angeles, California, Certificates of Participation, 6/13 at 100.00 AAA $ 1,509,275
Municipal Improvement Corporation, Series 2003AW,
5.000%, 6/01/33 - AMBAC Insured
7,000 Los Angeles, California, Certificates of Participation, Real 4/12 at 100.00 AAA 7,368,620
Property Acquisition Program, Series 2002, 5.200%, 4/01/27 -
AMBAC Insured
4,690 Los Angeles County Metropolitan Transportation Authority, 7/08 at 101.00 AAA 4,905,599
California, Proposition C Second Senior Lien Sales Tax
Revenue Refunding Bonds, Series 1998A, 5.000%, 7/01/23 -
AMBAC Insured
8,470 Ontario Redevelopment Financing Authority, California, 8/11 at 101.00 AAA 8,946,946
Lease Revenue Bonds, Capital Projects, Series 2001,
5.200%, 8/01/29 - AMBAC Insured
5,000 Palm Desert Financing Authority, California, Tax Allocation 4/12 at 102.00 AAA 5,239,800
Revenue Refunding Bonds, Project Area 1, Series 2002,
5.000%, 4/01/25 - MBIA Insured
4,475 Riverside County, California, Asset Leasing Corporate 6/12 at 101.00 AAA 4,751,466
Leasehold Revenue Bonds, Riverside County Hospital
Project, Series 1997B, 5.000%, 6/01/19 - MBIA Insured
3,175 San Buenaventura, California, Certificates of Participation, 2/11 at 101.00 AAA 3,346,482
Series 2001C, 5.250%, 2/01/31 - AMBAC Insured
3,730 San Diego Redevelopment Agency, California, Subordinate 9/09 at 101.00 Baa2 3,838,618
Lien Tax Increment and Parking Revenue Bonds, Centre City
Project, Series 2003B, 5.250%, 9/01/26
4,000 San Jose Financing Authority, California, Lease Revenue 9/11 at 100.00 AAA 4,288,040
Refunding Bonds, Convention Center Project, Series 2001F,
5.000%, 9/01/19 - MBIA Insured
1,000 Shasta Joint Powers Financing Authority, California, 4/13 at 100.00 AAA 1,073,850
Lease Revenue Bonds, County Administration Building
Project, Series 2003A, 5.250%, 4/01/23 - MBIA Insured
2,160 Temecula Redevelopment Agency, California, Tax Allocation 8/08 at 102.00 AAA 2,260,872
Revenue Bonds, Redevelopment Project 1, Series 2002,
5.125%, 8/01/27 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 5.6% (3.8% OF TOTAL INVESTMENTS)
2,250 California Infrastructure Economic Development Bank, 7/13 at 100.00 AAA 2,333,723
First Lien Revenue Bonds, San Francisco Bay Area Toll
Bridge, Series 2003A, 5.000%, 7/01/36 - AMBAC Insured
7,500 Foothill/Eastern Transportation Corridor Agency, California, 1/14 at 101.00 BBB- 6,135,900
Toll Road Revenue Refunding Bonds, Series 1999,
0.000%, 1/15/29
San Francisco Airports Commission, California, Revenue Bonds,
San Francisco International Airport, Second Series 2003, Issue 29A:
2,185 5.250%, 5/01/16 (Alternative Minimum Tax) - FGIC Insured 5/13 at 100.00 AAA 2,357,134
2,300 5.250%, 5/01/17 (Alternative Minimum Tax) - FGIC Insured 5/13 at 100.00 AAA 2,469,625
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 4.3% (2.9% OF TOTAL INVESTMENTS)
2,070 Fresno Unified School District, Fresno County, California, 8/10 at 102.00 AAA 2,237,567
General Obligation Bonds, Series 2002G, 5.125%, 8/01/26 -
FSA Insured
Fresno Unified School District, Fresno County, California,
General Obligation Bonds, Series 2002B:
1,135 5.125%, 8/01/23 - FGIC Insured 8/10 at 102.00 AAA 1,226,878
1,190 5.125%, 8/01/24 - FGIC Insured 8/10 at 102.00 AAA 1,286,331
1,245 5.125%, 8/01/25 - FGIC Insured 8/10 at 102.00 AAA 1,345,783
1,255 5.125%, 8/01/26 - FGIC Insured 8/10 at 102.00 AAA 1,356,592
2,500 Metropolitan Water District of Southern California, Water 1/08 at 101.00 AAA 2,686,125
Revenue Bonds, Series 1997A, 5.000%, 7/01/30
(Pre-refunded to 1/01/08) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 19.4% (13.1% OF TOTAL INVESTMENTS)
9,000 Anaheim Public Finance Authority, California, Revenue Bonds, 10/12 at 100.00 AAA 9,353,790
Electric System Distribution Facilities, Series 2002A,
5.000%, 10/01/27 - FSA Insured
10,000 California Pollution Control Financing Authority, Remarketed 4/11 at 102.00 AAA 10,808,400
Revenue Bonds, Pacific Gas and Electric Company,
Series 1996A, 5.350%, 12/01/16 (Alternative Minimum
Tax) - MBIA Insured (PLG1)
6,000 California Department of Water Resources, Power Supply 5/12 at 101.00 A2 6,444,720
Revenue Bonds, Series 2002A, 5.125%, 5/01/18
3,000 Los Angeles Department of Water and Power, California, 7/11 at 100.00 AAA 3,262,320
Power System Revenue Bonds, Series 2001A-1,
5.250%, 7/01/21 - FSA Insured
775 Los Angeles Department of Water and Power, California, 7/13 at 100.00 AAA 825,228
Power System Revenue Bonds, Series 2003A-2,
5.000%, 7/01/21 - MBIA Insured
6,000 Northern California Power Agency, Revenue Refunding Bonds, 7/08 at 101.00 AAA 6,329,160
Hydroelectric Project 1, Series 1998A, 5.200%, 7/01/32 -
MBIA Insured
52
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES (continued)
$ 3,000 Sacramento Municipal Utility District, California, Electric 8/11 at 100.00 AAA $ 3,102,810
Revenue Bonds, Series 2001N, 5.000%, 8/15/28 -
MBIA Insured
5,630 Southern California Public Power Authority, Subordinate 7/12 at 100.00 AAA 5,847,037
Revenue Refunding Bonds, Transmission Project,
Series 2002A, 4.750%, 7/01/19 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 16.8% (11.3% OF TOTAL INVESTMENTS)
3,000 California Department of Water Resources, Water System 12/12 at 100.00 AAA 3,221,550
Revenue Bonds, Central Valley Project, Series 2002X,
5.150%, 12/01/23 - FGIC Insured
6,100 East Bay Municipal Utility District, Alameda and Contra 6/11 at 100.00 AAA 6,330,031
Costa Counties, California, Water System Subordinated
Revenue Bonds, Series 2001, 5.000%, 6/01/26 -
MBIA Insured (PLG2)
9,000 Eastern Municipal Water District, California, Water and 7/11 at 100.00 AAA 9,252,810
Sewerage System Revenue Certificates of Participation,
Series 2001B, 5.000%, 7/01/30 - FGIC Insured
4,500 Los Angeles County Sanitation Districts Financing Authority, 10/13 at 100.00 AAA 4,764,555
California, Senior Revenue Bonds, Capital Projects,
Series 2003A, 5.000%, 10/01/23 - FSA Insured
3,605 Manteca Financing Authority, California, Sewerage Revenue 12/13 at 100.00 Aaa 3,687,374
Bonds, Series 2003B, 5.000%, 12/01/33 - MBIA Insured
9,185 Orange County Sanitation District, California, Certificates 8/13 at 100.00 AAA 9,500,505
of Participation, Series 2003, 5.000%, 2/01/33 - FGIC Insured
Semitropic Water Storage District, Kern County, California,
Water Banking Revenue Bonds, Series 2004A:
1,315 5.500%, 12/01/20 - XLCA Insured 12/14 at 100.00 AAA 1,471,286
1,415 5.500%, 12/01/21 - XLCA Insured 12/14 at 100.00 AAA 1,577,131
------------------------------------------------------------------------------------------------------------------------------------
$ 335,010 Total Long-Term Investments (cost $330,799,083) - 148.3% 352,259,106
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.4% 3,299,517
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.7)% (118,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 237,558,623
====================================================================================================================
FORWARD SWAP CONTRACTS OUTSTANDING AT FEBRUARY 28, 2005:
UNREALIZED
NOTIONAL EFFECTIVE TERMINATION APPRECIATION
AMOUNT DATE(2) DATE (DEPRECIATION)
------------------------------------------------------------------------------------------------------------------------------------
Agreement with Goldman Sachs dated December 6, 2004, to
pay semi-annually the notional amount multiplied by 5.324%
(annualized) and receive quarterly the notional amount
multiplied by the three-month USD-LIBOR (United States
Dollar-London Inter-Bank Offered Rates). $5,800,000 7/11/05 7/11/25 $(115,603)
Agreement with JPMorgan dated January 11, 2005, to pay
semi-annually the notional amount multiplied by 5.235%
(annualized) and receive quarterly the notional amount
multiplied by the three-month USD-LIBOR (United States
Dollar-London Inter-Bank Offered Rates). 6,600,000 8/17/05 8/17/25 (46,915)
Agreement with Merrill Lynch dated February 14, 2005, to
pay semi-annually the notional amount multiplied by 4.886%
(annualized) and receive quarterly the notional amount
multiplied by the three-month USD-LIBOR (United States
Dollar-London Inter-Bank Offered Rates). 6,000,000 8/24/05 8/24/25 217,760
------------------------------------------------------------------------------------------------------------------------------------
$ 55,242
====================================================================================================================================
At least 80% of the Fund's net assets (including net assets
attributable to Preferred shares) are invested in municipal
securities that are either covered by Original Issue
Insurance, Secondary Market Insurance or Portfolio Insurance
any of which ensure the timely payment of principal and
interest. Up to 20% of the Fund's net assets (including net
assets attributable to Preferred shares) may be invested in
municipal securities that are (i) either backed by an escrow
or trust containing sufficient U.S. Government or U.S.
Government agency securities (also ensuring the timely
payment of principal and interest), or (ii) municipal bonds
that are rated, at the time of investment, within the four
highest grades (Baa or BBB or better by Moody's, S&P or
Fitch) or unrated but judged to be of comparable quality by
the Adviser.
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
(2) Effective date represents the date on which both the Fund
and counterparty commence interest payment accruals on each
forward swap contract.
* 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.
** Ratings: Using the higher of Standard & Poor's or Moody's
rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of principal and
interest.
(PLG1) Portion of security, with an aggregate market value of
$324,252, has been pledged to collateralize the net payment
obligations under forward swap contracts.
(PLG2) Portion of security, with an aggregate market value of
$250,088, has been pledged to collateralize the net payment
obligations under forward swap contracts.
See accompanying notes to financial statements.
53
Nuveen Insured California Tax-Free Advantage Municipal Fund (NKX)
Portfolio of
INVESTMENTS February 28, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.1% (1.3% OF TOTAL INVESTMENTS)
$ 1,625 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB $ 1,868,636
Tobacco Settlement Asset-Backed Revenue Bonds,
Series 2003A-2, 7.900%, 6/01/42
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 18.7% (12.5% OF TOTAL INVESTMENTS)
2,700 California Health Facilities Financing Authority, Revenue 12/09 at 101.00 A3 2,946,834
Bonds, Cedars-Sinai Medical Center, Series 1999A,
6.250%, 12/01/34
1,500 California Health Facilities Financing Authority, Revenue 11/08 at 101.00 AAA 1,539,450
Bonds, UCSF - Stanford Healthcare, Series 1998A,
5.000%, 11/15/31 - FSA Insured
1,800 California Infrastructure Economic Development Bank, 8/11 at 102.00 A 1,905,624
Revenue Bonds, Kaiser Hospital Assistance LLC,
Series 2001A, 5.550%, 8/01/31
6,000 California Statewide Community Development Authority, No Opt. Call AAA 6,530,460
Revenue Refunding Bonds, Sherman Oaks Health,
Series 1998A, 5.000%, 8/01/22 - AMBAC Insured
2,000 California Statewide Community Development Authority, 6/13 at 100.00 AAA 2,141,540
Hospital Revenue Bonds, Monterey Peninsula Hospital,
Series 2003B, 5.250%, 6/01/23 - FSA Insured
1,260 Rancho Mirage Joint Powers Financing Authority, California, 7/14 at 100.00 A3 1,358,948
Revenue Bonds, Eisenhower Medical Center, Series 2004,
5.875%, 7/01/26
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 5.8% (3.9% OF TOTAL INVESTMENTS)
1,000 ABAG Finance Authority for Non-Profit Corporations, 11/12 at 100.00 A 1,052,650
California, Insured Senior Living Revenue Bonds, Odd Fellows
Home of California, Series 2003A, 5.200%, 11/15/22
2,000 California Health Facilities Financing Authority, Insured 1/13 at 100.00 A 2,100,080
Revenue Bonds, Northern California Retired Officers
Community Corporation - Paradise Valley Estates,
Series 2002, 5.250%, 1/01/26
1,815 California Statewide Community Development Authority, 11/13 at 100.00 A 1,908,436
Revenue Bonds, Jewish Home for the Aging, Series 2003,
5.000%, 11/15/18
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 47.2% (31.6% OF TOTAL INVESTMENTS)
1,000 Berryessa Union School District, Santa Clara County, 8/12 at 100.00 AAA 1,063,660
California, General Obligation Bonds, Series 2003C,
5.000%, 8/01/21 - FSA Insured
2,000 Butte-Glenn Community College District, Butte and Glenn 8/12 at 101.00 Aaa 2,097,280
Counties, California, General Obligation Bonds,
Series 2002A, 5.000%, 8/01/26 - MBIA Insured
California, General Obligation Refunding Bonds, Series 2002:
1,500 5.000%, 2/01/12 No Opt. Call A 1,633,905
3,750 5.000%, 4/01/27 - AMBAC Insured 4/12 at 100.00 AAA 3,886,800
3,000 5.250%, 4/01/30 - XLCA Insured 4/12 at 100.00 AAA 3,165,930
500 California, General Obligation Bonds, Series 2004, 4/14 at 100.00 A 530,120
5.250%, 4/01/34
450 Fremont Unified School District, Alameda County, California, 8/12 at 101.00 AAA 472,473
General Obligation Bonds, Series 2002A, 5.000%, 8/01/25 -
FGIC Insured
Hacienda La Puente Unified School District, Los Angeles County,
California, General Obligation Bonds, Series 2003B:
4,500 5.000%, 8/01/26 - FSA Insured 8/13 at 100.00 AAA 4,718,880
2,030 5.000%, 8/01/27 - FSA Insured 8/13 at 100.00 AAA 2,121,452
2,000 Los Angeles, California, General Obligation Bonds, 9/12 at 100.00 AAA 2,117,960
Series 2002A, 5.000%, 9/01/22 - MBIA Insured
10,750 Los Angeles Unified School District, California, General 7/13 at 100.00 AAA 11,393,602
Obligation Bonds, Series 2003A, 5.000%, 7/01/22 -
FSA Insured
1,000 Murrieta Valley Unified School District, Riverside County, 9/13 at 100.00 AAA 1,049,070
California, General Obligation Bonds, Series 2003A,
5.000%, 9/01/26 - FGIC Insured
3,000 San Diego Unified School District, California, General 7/10 at 100.00 AAA 3,206,850
Obligation Bonds, Election of 1998, Series 2000B,
5.125%, 7/01/22 - MBIA Insured
54
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 3,855 San Rafael City High School District, Marin County, 8/12 at 100.00 AAA $ 4,003,726
California, General Obligation Bonds, Series 2003A,
5.000%, 8/01/28 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 45.1% (30.2% OF TOTAL INVESTMENTS)
550 Baldwin Park Public Financing Authority, California, Sales 8/13 at 102.00 BBB 571,632
Tax and Tax Allocation Bonds, Puente Merced Redevelopment
Project, Series 2003, 5.250%, 8/01/21
2,025 Burbank Public Financing Authority, California, Revenue 12/13 at 100.00 AAA 2,192,447
Refunding Bonds, Golden State Redevelopment Project,
Series 2003A, 5.250%, 12/01/22 - AMBAC Insured
4,000 California State Public Works Board, Lease Revenue Bonds, 12/12 at 100.00 AAA 4,152,040
Department of General Services, Capital East End Project,
Series 2002A, 5.000%, 12/01/27 - AMBAC Insured
2,000 California State Public Works Board, Lease Revenue Bonds, 12/13 at 100.00 A- 2,231,440
Department of Corrections, Series 2003C, 5.500%, 6/01/16
1,610 Folsom Public Financing Authority, California, Special Tax 9/12 at 102.00 AAA 1,713,362
Revenue Bonds, Series 2004A, 5.000%, 9/01/21 -
AMBAC Insured
5,540 Irvine Public Facilities and Infrastructure Authority, California, 3/05 at 103.00 AAA 5,754,564
Assessment Revenue Bonds, Series 2003C, 5.000%, 9/02/21 -
AMBAC Insured
2,000 Los Angeles, California, Certificates of Participation, 6/13 at 100.00 AAA 2,067,500
Municipal Improvement Corporation, Series 2003AW,
5.000%, 6/01/33 - AMBAC Insured
1,770 Los Angeles Unified School District, California, Certificates 10/12 at 100.00 AAA 1,836,110
of Participation, Administration Building Project II,
Series 2002C, 5.000%, 10/01/27 - AMBAC Insured
1,500 Los Osos, California, Improvement Bonds, Community 9/10 at 103.00 AAA 1,549,455
Services Wastewater Assessment District 1, Series 2002,
5.000%, 9/02/33 - MBIA Insured
1,825 Paramount Redevelopment Agency, California, Tax Allocation 8/13 at 100.00 AAA 1,944,300
Bonds, Redevelopment Project Area 1, Series 2003,
5.000%, 8/01/19 - MBIA Insured
1,165 Poway, California, Housing Revenue Bonds, Revenue Bonds, 5/13 at 102.00 BBB+ 1,166,305
Poinsettia Mobile Home Park, Series 2003, 5.000%, 5/01/23
San Buenaventura, California, Certificates of Participation,
Golf Course Financing Project, Series 2002D:
3,000 5.000%, 2/01/27 - AMBAC Insured 2/12 at 100.00 AAA 3,103,620
3,300 5.000%, 2/01/32 - AMBAC Insured 2/12 at 100.00 AAA 3,396,129
1,200 San Diego Redevelopment Agency, California, Subordinate 9/09 at 101.00 Baa2 1,234,944
Lien Tax Increment and Parking Revenue Bonds,
Centre City Project, Series 2003B, 5.250%, 9/01/26
1,220 San Jose Redevelopment Agency, California, Tax Allocation 8/10 at 101.00 AAA 1,253,318
Bonds, Merged Area Redevelopment Project, Series 2002,
5.000%, 8/01/32 - MBIA Insured
2,770 San Jose Financing Authority, California, Lease Revenue 6/12 at 100.00 AAA 2,848,723
Refunding Bonds, Civic Center Project, Series 2002B,
5.000%, 6/01/32 - AMBAC Insured
2,390 Solano County, California, Certificates of Participation, 11/12 at 100.00 AAA 2,570,254
Series 2002, 5.250%, 11/01/24 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 13.9% (9.3% OF TOTAL INVESTMENTS)
5,480 Bay Area Governments Association, California, BART SFO 8/12 at 100.00 AAA 5,698,488
Extension, Airport Premium Fare Revenue Bonds,
Series 2002A, 5.000%, 8/01/26 - AMBAC Insured
2,000 Foothill/Eastern Transportation Corridor Agency, California, 1/10 at 100.00 BBB- 1,852,680
Toll Road Revenue Bonds, Series 1995A, 5.000%, 1/01/35
3,135 San Francisco Airports Commission, California, Revenue 5/08 at 101.00 AAA 3,266,795
Bonds, San Francisco International Airport, Second Series
Issue 16B, 5.000%, 5/01/24 - FSA Insured
1,300 San Francisco Airports Commission, California, Revenue 5/10 at 101.00 AAA 1,353,339
Bonds, San Francisco International Airport, Second
Series 2000, Issue 26B, 5.000%, 5/01/25 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 5.4% (3.6% OF TOTAL INVESTMENTS)
1,000 Anaheim Public Finance Authority, California, Second Lien 10/14 at 100.00 AAA 1,092,480
Electric Distribution Revenue Bonds, Series 2004,
5.250%, 10/01/21 - MBIA Insured
3,055 Los Angeles Department of Water and Power, California, 7/11 at 100.00 AAA 3,322,129
Power System Revenue Bonds, Series 2001A-1,
5.250%, 7/01/22 - FSA Insured
55
Nuveen Insured California Tax-Free Advantage Municipal Fund (NKX) (continued)
Portfolio of INVESTMENTS February 28, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES (continued)
$ 275 Los Angeles Department of Water and Power, California, 7/13 at 100.00 AAA $ 292,823
Power System Revenue Bonds, Series 2003A-2,
5.000%, 7/01/21 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 11.4% (7.6% OF TOTAL INVESTMENTS)
1,335 Manteca Financing Authority, California, Sewerage Revenue 12/13 at 100.00 Aaa 1,365,505
Bonds, Series 2003B, 5.000%, 12/01/33 - MBIA Insured
San Diego Public Facilities Financing Authority, California,
Subordinate Lien Water Revenue Bonds, Series 2002:
3,000 5.000%, 8/01/22 - MBIA Insured 8/12 at 100.00 AAA 3,176,160
2,500 5.000%, 8/01/23 - MBIA Insured 8/12 at 100.00 AAA 2,636,150
1,180 South Feather Water and Power Agency, California, Water 4/13 at 100.00 BBB 1,180,708
Revenue Certificates of Participation, Solar Photovoltaic
Project, Series 2003, 5.375%, 4/01/24
1,600 Sunnyvale Financing Authority, California, Water and 10/11 at 100.00 AAA 1,658,512
Wastewater Revenue Bonds, Series 2001,
5.000%, 10/01/26 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 124,760 Total Long-Term Investments (cost $125,705,146) - 149.6% 131,296,278
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.7% 1,467,985
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (51.3)% (45,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 87,764,263
====================================================================================================================
FORWARD SWAP CONTRACTS OUTSTANDING AT FEBRUARY 28, 2005:
UNREALIZED
NOTIONAL EFFECTIVE TERMINATION APPRECIATION
AMOUNT DATE(2) DATE (DEPRECIATION)
------------------------------------------------------------------------------------------------------------------------------------
Agreement with Goldman Sachs dated December 6, 2004, to
pay semi-annually the notional amount multiplied by 5.324%
(annualized) and receive quarterly the notional amount
multiplied by the three-month USD-LIBOR (United States
Dollar-London Inter-Bank Offered Rates). $2,400,000 7/11/05 7/11/25 $(47,836)
Agreement with JPMorgan dated January 11, 2005, to pay
semi-annually the notional amount multiplied by 5.235%
(annualized) and receive quarterly the notional amount
multiplied by the three-month USD-LIBOR (United States
Dollar-London Inter-Bank Offered Rates). 2,300,000 8/17/05 8/17/25 (16,349)
Agreement with Merrill Lynch dated February 14, 2005, to
pay semi-annually the notional amount multiplied by 4.886%
(annualized) and receive quarterly the notional amount
multiplied by the three-month USD-LIBOR (United States
Dollar-London Inter-Bank Offered Rates). 2,700,000 8/24/05 8/24/25 97,992
------------------------------------------------------------------------------------------------------------------------------------
$ 33,807
====================================================================================================================================
At least 80% of the Fund's net assets (including net assets
attributable to Preferred shares) are invested in municipal
securities that are either covered by Original Issue
Insurance, Secondary Market Insurance or Portfolio Insurance
any of which ensure the timely payment of principal and
interest. Up to 20% of the Fund's net assets (including net
assets attributable to Preferred shares) may be invested in
municipal securities that are (i) either backed by an escrow
or trust containing sufficient U.S. Government or U.S.
Government agency securities (also ensuring the timely
payment of principal and interest), or (ii) municipal bonds
that are rated, at the time of investment, within the four
highest grades (Baa or BBB or better by Moody's, S&P or
Fitch) or unrated but judged to be of comparable quality by
the Adviser.
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
(2) Effective date represents the date on which both the Fund
and counterparty commence interest payment accruals on each
forward swap contract.
* 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.
** Ratings: Using the higher of Standard & Poor's or Moody's
rating.
See accompanying notes to financial statements.
56
Statement of
ASSETS AND LIABILITIES February 28, 2005 (Unaudited)
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
PREMIUM PREMIUM PREMIUM DIVIDEND
INCOME INCOME 2 INCOME ADVANTAGE
(NPC) (NCL) (NCU) (NAC)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at market value (cost $135,030,669,
$269,491,940, $120,082,726 and
$505,946,087, respectively) $147,339,003 $286,435,435 $127,200,217 $538,955,473
Cash -- 404,967 150,483 --
Receivables:
Interest 2,284,388 3,635,109 1,540,329 7,703,629
Investments sold -- 140,000 -- 20,600
Forward swaps, at value -- -- -- --
Other assets 9,398 28,593 6,584 37,246
------------------------------------------------------------------------------------------------------------------------------------
Total assets 149,632,789 290,644,104 128,897,613 546,716,948
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 1,015,913 -- -- 2,004,884
Payable for investments purchased -- 2,477,974 267,262 --
Forward swaps, at value -- -- -- --
Accrued expenses:
Management fees 73,562 141,112 63,796 157,367
Other 51,091 67,155 54,381 120,756
Preferred share dividends payable 13,762 21,676 12,779 17,735
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 1,154,328 2,707,917 398,218 2,300,742
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 45,000,000 95,000,000 43,000,000 175,000,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $103,478,461 $192,936,187 $ 85,499,395 $369,416,206
====================================================================================================================================
Common shares outstanding 6,446,694 12,713,231 5,774,216 23,412,013
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common
shares, divided by Common
shares outstanding) $ 16.05 $ 15.18 $ 14.81 $ 15.78
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 64,467 $ 127,132 $ 57,742 $ 234,120
Paid-in surplus 89,219,480 176,175,463 78,361,540 332,503,040
Undistributed (Over-distribution of) net investment income 1,287,018 1,460,501 788,204 3,780,694
Accumulated net realized gain (loss) from investments
and forward swaps 599,162 (1,770,404) (825,582) (111,034)
Net unrealized appreciation of investments
and forward swaps 12,308,334 16,943,495 7,117,491 33,009,386
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $103,478,461 $192,936,187 $ 85,499,395 $369,416,206
====================================================================================================================================
Authorized shares:
Common 200,000,000 200,000,000 Unlimited Unlimited
Preferred 1,000,000 1,000,000 Unlimited Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
57
Statement of
ASSETS AND LIABILITIES February 28, 2005 (Unaudited) (continued)
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
DIVIDEND DIVIDEND DIVIDEND TAX-FREE
ADVANTAGE 2 ADVANTAGE 3 ADVANTAGE ADVANTAGE
(NVX) (NZH) (NKL) (NKX)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at market value (cost $316,791,709,
$522,719,732, $330,799,083 and
$125,705,146, respectively) $332,565,169 $542,534,024 $352,259,106 $131,296,278
Cash -- -- -- 18,027
Receivables:
Interest 4,377,159 7,683,148 4,097,824 1,468,775
Investments sold -- -- -- --
Forward swaps, at value -- -- 217,760 97,992
Other assets 16,010 14,639 13,905 9,529
------------------------------------------------------------------------------------------------------------------------------------
Total assets 336,958,338 550,231,811 356,588,595 132,890,601
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 223,719 2,242,066 706,286 --
Payable for investments purchased 195,307 -- -- --
Forward swaps, at value -- -- 162,518 64,185
Accrued expenses:
Management fees 85,971 137,196 90,652 32,943
Other 49,771 77,132 50,190 24,284
Preferred share dividends payable 18,908 51,644 20,326 4,926
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 573,676 2,508,038 1,029,972 126,338
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 110,000,000 187,000,000 118,000,000 45,000,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $226,384,662 $360,723,773 $237,558,623 $ 87,764,263
====================================================================================================================================
Common shares outstanding 14,790,660 24,112,833 15,259,759 5,883,302
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common
shares, divided by Common
shares outstanding) $ 15.31 $ 14.96 $ 15.57 $ 14.92
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 147,907 $ 241,128 $ 152,598 $ 58,833
Paid-in surplus 210,028,777 342,513,152 216,623,358 83,000,891
Undistributed (Over-distribution of) net investment income 1,879,513 2,814,393 1,086,211 (142,844)
Accumulated net realized gain (loss) from investments
and forward swaps (1,444,995) (4,659,192) (1,818,809) (777,556)
Net unrealized appreciation of investments
and forward swaps 15,773,460 19,814,292 21,515,265 5,624,939
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $226,384,662 $360,723,773 $237,558,623 $ 87,764,263
====================================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
58
Statement of
OPERATIONS Six Months Ended February 28, 2005 (Unaudited)
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
PREMIUM PREMIUM PREMIUM DIVIDEND
INCOME INCOME 2 INCOME ADVANTAGE
(NPC) (NCL) (NCU) (NAC)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $3,676,233 $6,989,251 $3,116,265 $13,539,506
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 475,760 907,919 408,389 1,685,247
Preferred shares - auction fees 55,788 117,773 53,308 216,952
Preferred shares - dividend disbursing agent fees 4,959 9,917 4,959 9,917
Shareholders' servicing agent fees and expenses 5,383 8,689 4,185 3,503
Custodian's fees and expenses 17,181 32,915 13,708 52,365
Directors'/Trustees' fees and expenses 1,312 2,455 1,141 4,272
Professional fees 6,992 9,952 7,225 10,954
Shareholders' reports - printing and mailing expenses 5,142 11,656 5,462 14,385
Stock exchange listing fees 5,414 5,463 244 5,409
Investor relations expense 4,630 19,615 8,896 35,401
Other expenses 6,707 8,158 7,916 15,795
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense reimbursement 589,268 1,134,512 515,433 2,054,200
Custodian fee credit (2,395) (5,838) (3,529) (13,270)
Expense reimbursement -- -- -- (673,481)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 586,873 1,128,674 511,904 1,367,449
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 3,089,360 5,860,577 2,604,361 12,172,057
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments 627,472 213,776 224,411 (109,926)
Net realized gain (loss) from forward swaps -- -- -- --
Change in net unrealized appreciation (depreciation)
of investments (509,657) 975,535 1,701,344 6,084,583
Change in net unrealized appreciation (depreciation)
of forward swaps -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain 117,815 1,189,311 1,925,755 5,974,657
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (248,102) (565,185) (273,244) (1,127,569)
From accumulated net realized gains from investments (53,379) -- -- (64,137)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (301,481) (565,185) (273,244) (1,191,706)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common shares
from operations $2,905,694 $6,484,703 $4,256,872 $16,955,008
====================================================================================================================================
See accompanying notes to financial statements.
59
Statement of
OPERATIONS Six Months Ended February 28, 2005 (Unaudited) (continued)
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
DIVIDEND DIVIDEND DIVIDEND TAX-FREE
ADVANTAGE 2 ADVANTAGE 3 ADVANTAGE ADVANTAGE
(NVX) (NZH) (NKL) (NKX)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 8,005,728 $13,013,295 $ 8,595,072 $3,150,045
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 1,049,217 1,692,446 1,111,105 421,177
Preferred shares - auction fees 136,369 231,828 146,288 55,788
Preferred shares - dividend disbursing agent fees 9,917 9,917 9,917 4,959
Shareholders' servicing agent fees and expenses 1,585 2,539 1,403 680
Custodian's fees and expenses 30,666 51,346 38,185 15,107
Directors'/Trustees' fees and expenses 2,855 4,393 3,169 1,054
Professional fees 10,119 14,691 11,529 6,967
Shareholders' reports - printing and mailing expenses 13,997 19,657 14,027 6,258
Stock exchange listing fees 625 1,018 645 248
Investor relations expense 22,124 35,598 23,467 9,143
Other expenses 11,912 16,292 11,338 8,265
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense reimbursement 1,289,386 2,079,725 1,371,073 529,646
Custodian fee credit (15,511) (18,782) (8,434) (3,247)
Expense reimbursement (498,095) (811,747) (528,139) (209,850)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 775,780 1,249,196 834,500 316,549
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 7,229,948 11,764,099 7,760,572 2,833,496
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments 31,775 59,245 365,618 164,139
Net realized gain (loss) from forward swaps -- -- (1,845,219) (663,144)
Change in net unrealized appreciation (depreciation)
of investments 5,172,472 7,162,560 4,566,339 1,945,156
Change in net unrealized appreciation (depreciation)
of forward swaps -- -- 1,056,618 394,932
------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain 5,204,247 7,221,805 4,143,356 1,841,083
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (700,391) (1,235,151) (767,673) (306,044)
From accumulated net realized gains from investments -- -- (45,704) --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (700,391) (1,235,151) (813,377) (306,044)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common shares
from operations $11,733,804 $17,750,753 $11,090,551 $4,368,535
====================================================================================================================================
See accompanying notes to financial statements.
60
Statement of
CHANGES IN NET ASSETS (Unaudited)
INSURED CALIFORNIA INSURED CALIFORNIA CALIFORNIA PREMIUM
PREMIUM INCOME (NPC) PREMIUM INCOME 2 (NCL) INCOME (NCU)
--------------------------------- --------------------------------- ---------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
2/28/05 8/31/04 2/28/05 8/31/04 2/28/05 8/31/04
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 3,089,360 $ 6,380,123 $ 5,860,577 $ 12,155,986 $ 2,604,361 $ 5,443,316
Net realized gain (loss)
from investments 627,472 1,060,439 213,776 6,591,551 224,411 262,244
Net realized gain (loss) from
forward swaps -- -- -- -- -- --
Change in net unrealized
appreciation (depreciation)
of investments (509,657) 3,379,499 975,535 127,122 1,701,344 4,594,174
Change in net unrealized
appreciation (depreciation)
of forward swaps -- -- -- -- -- --
Distributions to Preferred
Shareholders:
From net investment income (248,102) (324,673) (565,185) (727,279) (273,244) (329,173)
From accumulated net realized
gains from investments (53,379) (18,045) -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to Common
shares from operations 2,905,694 10,477,343 6,484,703 18,147,380 4,256,872 9,970,561
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON
SHAREHOLDERS
From net investment income (3,075,822) (5,990,256) (5,795,689) (11,576,056) (2,529,106) (5,058,214)
From accumulated net
realized gains
from investments (1,006,068) (339,859) -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets
applicable to
Common shares from
distributions to
Common shareholders (4,081,890) (6,330,115) (5,795,689) (11,576,056) (2,529,106) (5,058,214)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- -- -- -- -- --
Net proceeds from shares issued
to shareholders due to
reinvestment of
distributions 36,956 43,490 212,342 282,847 -- --
Preferred shares offering costs -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
capital share transactions 36,956 43,490 212,342 282,847 -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
applicable to Common shares (1,139,240) 4,190,718 901,356 6,854,171 1,727,766 4,912,347
Net assets applicable to
Common shares at the
beginning of period 104,617,701 100,426,983 192,034,831 185,180,660 83,771,629 78,859,282
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable
to Common shares
at the end of period $103,478,461 $104,617,701 $192,936,187 $192,034,831 $85,499,395 $83,771,629
====================================================================================================================================
Undistributed
(Over-distribution of)
net investment income
at the end of period $ 1,287,018 $ 1,521,582 $ 1,460,501 $ 1,960,798 $ 788,204 $ 986,193
====================================================================================================================================
See accompanying notes to financial statements.
61
Statement of
CHANGES IN NET ASSETS (Unaudited) (continued)
CALIFORNIA CALIFORNIA CALIFORNIA
DIVIDEND ADVANTAGE (NAC) DIVIDEND ADVANTAGE 2 (NVX) DIVIDEND ADVANTAGE 3 (NZH)
--------------------------------- --------------------------------- ---------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
2/28/05 8/31/04 2/28/05 8/31/04 2/28/05 8/31/04
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 12,172,057 $ 24,522,028 $ 7,229,948 $ 14,625,012 $ 11,764,099 $ 23,526,062
Net realized gain (loss)
from investments (109,926) 3,065,461 31,775 734,631 59,245 (325,341)
Net realized gain (loss) from
forward swaps -- -- -- -- -- --
Change in net unrealized
appreciation (depreciation)
of investments 6,084,583 14,927,705 5,172,472 10,663,642 7,162,560 21,760,890
Change in net unrealized
appreciation (depreciation)
of forward swaps -- -- -- -- -- --
Distributions to Preferred
Shareholders:
From net investment income (1,127,569) (1,400,301) (700,391) (861,160) (1,235,151) (1,597,236)
From accumulated net realized
gains from investments (64,137) -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to Common
shares from operations 16,955,008 41,114,893 11,733,804 25,162,125 17,750,753 43,364,375
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON
SHAREHOLDERS
From net investment income (11,518,709) (22,967,185) (6,744,542) (13,489,082) (10,416,745) (20,833,489)
From accumulated net realized
gains from investments (1,086,300) -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets
applicable to
Common shares from
distributions to
Common shareholders (12,605,009) (22,967,185) (6,744,542) (13,489,082) (10,416,745) (20,833,489)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- -- -- -- -- --
Net proceeds from shares issued
to shareholders due to
reinvestment of distributions -- -- -- -- -- --
Preferred shares offering costs -- -- -- -- 29,546 --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
capital share transactions -- -- -- -- 29,546 --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
applicable to
Common shares 4,349,999 18,147,708 4,989,262 11,673,043 7,363,554 22,530,886
Net assets applicable
to Common shares
at the beginning of period 365,066,207 346,918,499 221,395,400 209,722,357 353,360,219 330,829,333
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable
to Common shares
at the end of period $369,416,206 $365,066,207 $226,384,662 $221,395,400 $360,723,773 $353,360,219
====================================================================================================================================
Undistributed
(Over-distribution of)
net investment income at
the end of period $ 3,780,694 $ 4,254,915 $ 1,879,513 $ 2,094,498 $ 2,814,393 $ 2,702,190
====================================================================================================================================
See accompanying notes to financial statements.
62
INSURED CALIFORNIA INSURED CALIFORNIA
DIVIDEND ADVANTAGE (NKL) TAX-FREE ADVANTAGE (NKX)
--------------------------------- ---------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
2/28/05 8/31/04 2/28/05 8/31/04
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 7,760,572 $ 15,590,731 $ 2,833,496 $ 5,658,576
Net realized gain (loss) from investments 365,618 657,530 164,139 40,760
Net realized gain (loss) from forward swaps (1,845,219) -- (663,144) --
Change in net unrealized appreciation
(depreciation) of investments 4,566,339 13,017,888 1,945,156 5,191,150
Change in net unrealized appreciation
(depreciation) of forward swaps 1,056,618 (1,001,377) 394,932 (361,125)
Distributions to Preferred Shareholders:
From net investment income (767,673) (854,403) (306,044) (347,495)
From accumulated net realized
gains from investments (45,704) (143,985) -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from operations 11,090,551 27,266,384 4,368,535 10,181,866
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (6,958,448) (13,916,900) (2,612,186) (5,329,761)
From accumulated net realized gains
from investments (759,922) (1,910,520) -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions to
Common shareholders (7,718,370) (15,827,420) (2,612,186) (5,329,761)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- (1,575) -- --
Net proceeds from shares issued
to shareholders due to
reinvestment of distributions -- -- -- 15,233
Preferred shares offering costs (54) (1,401) -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable
to Common shares from
capital share transactions (54) (2,976) -- 15,233
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares 3,372,127 11,435,988 1,756,349 4,867,338
Net assets applicable to Common shares
at the beginning of period 234,186,496 222,750,508 86,007,914 81,140,576
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $237,558,623 $234,186,496 $87,764,263 $86,007,914
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at
the end of period $ 1,086,211 $ 1,051,760 $ (142,844) $ (58,110)
====================================================================================================================================
See accompanying notes to financial statements.
63
Notes to
FINANCIAL STATEMENTS(Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The California funds (the "Funds") covered in this report and their
corresponding Common share stock exchange symbols are Nuveen Insured California
Premium Income Municipal Fund, Inc. (NPC), Nuveen Insured California Premium
Income Municipal Fund 2, Inc. (NCL), 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 Insured California Dividend Advantage
Municipal Fund (NKL) and Nuveen Insured California Tax-Free Advantage Municipal
Fund (NKX). Common shares of Insured California Premium Income (NPC), Insured
California Premium Income 2 (NCL) and California Dividend Advantage (NAC) are
traded on the New York Stock Exchange while Common shares of California Premium
Income (NCU), California Dividend Advantage 2 (NVX), California Dividend
Advantage 3 (NZH), Insured California Dividend Advantage (NKL) and Insured
California Tax-Free Advantage (NKX) are traded on the American Stock Exchange.
The Funds are registered under the Investment Company Act of 1940, as amended,
as closed-end management investment companies.
Each Fund seeks to provide current income exempt from both regular federal and
California state income taxes, and in the case of Insured California Tax-Free
Advantage (NKX) the alternative minimum tax applicable to individuals, by
investing primarily in a diversified portfolio of municipal obligations issued
by state and local government authorities within the state of California.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with U.S.
generally accepted accounting principles.
Investment Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors/Trustees. When
price quotes are not readily available (which is usually the case for municipal
securities), the pricing service establishes fair market value based on yields
or prices of municipal bonds of comparable quality, type of issue, coupon,
maturity and rating, indications of value from securities dealers, evaluations
of anticipated cash flows or collateral and general market conditions. Prices of
derivative investments are also provided by an independent pricing service
approved by each Fund's Board of Directors/Trustees. If the pricing service is
unable to supply a price for a derivative investment each Fund may use a market
quote provided by a major broker/dealer in such investments. If it is determined
that market prices for an investment are unavailable or inappropriate, the Board
of Directors/Trustees of the Funds, or its designee, may establish a fair value
for the investment. Temporary investments in securities that have variable rate
and demand features qualifying them as short-term securities are valued at
amortized cost, which approximates market value.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased on a when-issued or delayed delivery basis may have
extended settlement periods. Any securities so purchased are subject to market
fluctuation during this period. The Funds have instructed the custodian to
segregate assets with a current value at least equal to the amount of the
when-issued and delayed delivery purchase commitments. At February 28, 2005,
Insured California Premium Income 2 (NCL), California Premium Income (NCU), and
California Dividend Advantage 2 (NVX) had outstanding when-issued purchase
commitments of $2,477,974, $267,262 and $195,307, respectively. There were no
such outstanding purchase commitments in any of the other Funds.
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
Investment income also includes paydown gains and losses, if any.
64
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute substantially all net investment income and net capital
gains to shareholders and to otherwise comply with the requirements of
Subchapter M of the Internal Revenue Code applicable to regulated investment
companies. Therefore, no federal income tax provision is required. Furthermore,
each Fund intends to satisfy conditions which will enable interest from
municipal securities, which is exempt from regular federal and California state
income taxes, and in the case of Insured California Tax-Free Advantage (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.
Dividends and Distributions to Common Shareholders
Dividends from tax-exempt net investment income are declared monthly. Net
realized capital gains and/or market discount from investment transactions, if
any, are distributed to shareholders not less frequently than annually.
Furthermore, capital gains are distributed only to the extent they exceed
available capital loss carryforwards.
Distributions to Common shareholders of tax-exempt net investment income, net
realized capital gains and/or market discount, if any, are recorded on the
ex-dividend date. The amount and timing of distributions are determined in
accordance with federal income tax regulations, which may differ from U.S.
generally accepted accounting principles.
Preferred Shares
The Funds have issued and outstanding Preferred shares, $25,000 stated value per
share, as a means of effecting financial leverage. Each Fund's Preferred shares
are issued in one or more Series. The dividend rate on each Series is determined
every seven days, pursuant to a dutch auction process overseen by the auction
agent, and is payable weekly at the end of each rate period. The number of
Preferred shares outstanding, by Series and in total, for each Fund is as
follows:
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
PREMIUM PREMIUM PREMIUM DIVIDEND
INCOME INCOME 2 INCOME ADVANTAGE
(NPC) (NCL) (NCU) (NAC)
--------------------------------------------------------------------------------
Number of shares:
Series M -- -- 1,720 --
Series T 1,800 1,900 -- --
Series TH -- 1,900 -- 3,500
Series F -- -- -- 3,500
--------------------------------------------------------------------------------
Total 1,800 3,800 1,720 7,000
================================================================================
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
DIVIDEND DIVIDEND DIVIDEND TAX-FREE
ADVANTAGE 2 ADVANTAGE 3 ADVANTAGE ADVANTAGE
(NVX) (NZH) (NKL) (NKX)
--------------------------------------------------------------------------------
Number of shares:
Series M 2,200 3,740 -- --
Series T -- -- 2,360 --
Series TH -- 3,740 -- 1,800
Series F 2,200 -- 2,360 --
--------------------------------------------------------------------------------
Total 4,400 7,480 4,720 1,800
================================================================================
Insurance
Insured California Premium Income (NPC) and Insured California Premium Income 2
(NCL) invest in municipal securities which are either covered by insurance or
are backed by an escrow or trust account containing sufficient U.S. Government
or U.S. Government agency securities, both of which ensure the timely payment of
principal and interest.
Insured California Dividend Advantage (NKL) and Insured California Tax-Free
Advantage (NKX) invest at least 80% of their net assets (including net assets
applicable to Preferred shares) in municipal securities that are covered by
insurance. Each Fund may also invest up to 20% of its net assets (including net
assets applicable to Preferred shares) in municipal securities which are either
(i) backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities, or (ii) municipal bonds that are rated, at the
time of investment, within the four highest grades (Baa or BBB or better by
Moody's, S&P or Fitch) or unrated but judged to be of comparable quality by the
Adviser.
65
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
Each insured municipal security is covered by Original Issue Insurance,
Secondary Market Insurance or Portfolio Insurance. Such insurance does not
guarantee the market value of the municipal securities or the value of the
Funds' Common shares. Original Issue Insurance and Secondary Market Insurance
remain in effect as long as the municipal securities covered thereby remain
outstanding and the insurer remains in business, regardless of whether the Funds
ultimately dispose of such municipal securities. Consequently, the market value
of the municipal securities covered by Original Issue Insurance or Secondary
Market Insurance may reflect value attributable to the insurance. Portfolio
Insurance, in contrast, is effective only while the municipal securities are
held by the Funds. Accordingly, neither the prices used in determining the
market value of the underlying municipal securities nor the Common share net
asset value of the Funds include value, if any, attributable to the Portfolio
Insurance. Each policy of the Portfolio Insurance does, however, give the Funds
the right to obtain permanent insurance with respect to the municipal security
covered by the Portfolio Insurance policy at the time of its sale.
Forward Swap Transactions
The Funds may invest in certain derivative financial instruments. The Funds' use
of forward interest rate swap transactions is intended to mitigate the negative
impact that an increase in long-term interest rates could have on Common share
net asset value. Forward interest rate swap transactions involve each Fund's
agreement with the counterparty to pay, in the future, a fixed rate payment in
exchange for the counterparty paying the Fund a variable rate payment. The
amount of the payment obligation is based on the notional amount of the forward
swap contract. The Funds may close out a contract prior to the effective date at
which point a realized gain or loss would be recognized. When a forward swap is
terminated, it does not involve the delivery of securities or other underlying
assets or principal, but rather is settled in cash. Each Fund intends, but is
not obligated to, terminate its forward swaps before the effective date.
Accordingly, the risk of loss with respect to the swap counterparty on such
transactions is limited to the credit risk associated with a counterparty
failing to honor its commitment to pay any realized gain to the Fund upon
termination. To minimize such credit risk, all counterparties are required to
pledge collateral daily (based on the daily valuation of each swap) on behalf of
each Fund with a value approximately equal to the amount of any unrealized gain
above a pre-determined threshold. Reciprocally, when any of the Funds have an
unrealized loss on a swap contract, the Funds have instructed the custodian to
pledge assets of the Funds as collateral with a value approximately equal to the
amount of the unrealized loss above a pre-determined threshold. Collateral
pledges are monitored and subsequently adjusted if and when the swap valuations
fluctuate, either up or down, by at least the pre-determined threshold amount.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by credits earned on each Fund's cash on deposit
with the bank. Such deposit arrangements are an alternative to overnight
investments.
Indemnifications
Under the Funds' organizational documents, its Officers and Directors/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.
Use of Estimates
The preparation of financial statements in conformity with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of increases and
decreases in net assets applicable to Common shares from operations during the
reporting period. Actual results may differ from those estimates.
66
2. FUND SHARES
Transactions in Common shares were as follows:
INSURED CALIFORNIA INSURED CALIFORNIA CALIFORNIA
PREMIUM INCOME (NPC) PREMIUM INCOME 2 (NCL) PREMIUM INCOME (NCU)
----------------------- ----------------------- -----------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
2/28/05 8/31/04 2/28/05 8/31/04 2/28/05 8/31/04
---------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due to
reinvestment of
distributions 2,232 2,632 13,855 18,275 -- --
---------------------------------------------------------------------------------------------------------
2,232 2,632 13,855 18,275 -- --
=========================================================================================================
CALIFORNIA DIVIDEND CALIFORNIA DIVIDEND CALIFORNIA DIVIDEND
ADVANTAGE (NAC) ADVANTAGE 2 (NVX) ADVANTAGE 3 (NZH)
----------------------- ----------------------- -----------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
2/28/05 8/31/04 2/28/05 8/31/04 2/28/05 8/31/04
---------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due to
reinvestment of
distributions -- -- -- -- -- --
---------------------------------------------------------------------------------------------------------
-- -- -- -- -- --
=========================================================================================================
INSURED INSURED
CALIFORNIA DIVIDEND CALIFORNIA TAX-FREE
ADVANTAGE (NKL) ADVANTAGE (NKX)
----------------------- -----------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED
2/28/05 8/31/04 2/28/05 8/31/04
---------------------------------------------------------------------------------------------------------
Common shares issued to shareholders
due to reinvestment of distributions -- -- -- 1,017
---------------------------------------------------------------------------------------------------------
-- -- -- 1,017
=========================================================================================================
3. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities during the six months ended February 28, 2005, were as follows:
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
PREMIUM PREMIUM PREMIUM DIVIDEND
INCOME INCOME 2 INCOME ADVANTAGE
(NPC) (NCL) (NCU) (NAC)
--------------------------------------------------------------------------------
Purchases $9,614,266 $16,505,089 $8,465,581 $8,947,895
Sales and maturities 9,192,565 11,480,255 8,147,420 6,533,188
================================================================================
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
DIVIDEND DIVIDEND DIVIDEND TAX-FREE
ADVANTAGE 2 ADVANTAGE 3 ADVANTAGE ADVANTAGE
(NVX) (NZH) (NKL) (NKX)
--------------------------------------------------------------------------------
Purchases $11,585,173 $12,142,166 $5,790,443 $1,955,360
Sales and maturities 4,720,555 7,185,605 7,297,963 2,543,782
================================================================================
67
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
4. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to the treatment of paydown gains and losses on investments,
timing differences in recognizing income on taxable market discount securities
and timing differences in recognizing certain gains and losses on security
transactions.
At February 28, 2005, the cost of investments was as follows:
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
PREMIUM PREMIUM PREMIUM DIVIDEND
INCOME INCOME 2 INCOME ADVANTAGE
(NPC) (NCL) (NCU) (NAC)
--------------------------------------------------------------------------------
Cost of investments $134,902,054 $269,323,688 $120,028,637 $505,758,787
================================================================================
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
DIVIDEND DIVIDEND DIVIDEND TAX-FREE
ADVANTAGE 2 ADVANTAGE 3 ADVANTAGE ADVANTAGE
(NVX) (NZH) (NKL) (NKX)
--------------------------------------------------------------------------------
Cost of investments $316,781,744 $522,711,821 $330,835,434 $125,699,611
================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at February 28, 2005, were as follows:
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
PREMIUM PREMIUM PREMIUM DIVIDEND
INCOME INCOME 2 INCOME ADVANTAGE
(NPC) (NCL) (NCU) (NAC)
------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $12,507,267 $17,447,283 $7,344,495 $33,712,862
Depreciation (70,318) (335,536) (172,915) (516,176)
------------------------------------------------------------------------------------------------------------
Net unrealized appreciation of investments $12,436,949 $17,111,747 $7,171,580 $33,196,686
============================================================================================================
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
DIVIDEND DIVIDEND DIVIDEND TAX-FREE
ADVANTAGE 2 ADVANTAGE 3 ADVANTAGE ADVANTAGE
(NVX) (NZH) (NKL) (NKX)
------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $16,317,479 $20,605,366 $21,575,053 $5,697,750
Depreciation (534,054) (783,163) (151,381) (101,083)
------------------------------------------------------------------------------------------------------------
Net unrealized appreciation of investments $15,783,425 $19,822,203 $21,423,672 $5,596,667
============================================================================================================
68
The tax components of undistributed net investment income and net realized gains
at August 31, 2004, the Funds' last fiscal year end, were as follows:
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
PREMIUM PREMIUM PREMIUM DIVIDEND
INCOME INCOME 2 INCOME ADVANTAGE
(NPC) (NCL) (NCU) (NAC)
-----------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income * $1,758,461 $2,781,051 $1,358,334 $6,014,505
Undistributed net ordinary income ** 350,095 2,752 -- --
Undistributed net long-term capital gains 784,567 -- -- 1,149,328
===========================================================================================================
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
DIVIDEND DIVIDEND DIVIDEND TAX-FREE
ADVANTAGE 2 ADVANTAGE 3 ADVANTAGE ADVANTAGE
(NVX) (NZH) (NKL) (NKX)
-----------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income * $3,197,604 $4,445,944 $2,129,949 $388,572
Undistributed net ordinary income ** 17,650 -- -- --
Undistributed net long-term capital gains -- -- 617,799 --
===========================================================================================================
* Undistributed net tax exempt income (on a tax basis) has not been reduced
for the dividend declared on August 2, 2004, paid on September 1, 2004.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
The tax character of distributions paid during the fiscal year ended August 31,
2004, the Funds' last fiscal year end, was designated for purposes of the
dividends paid deduction as follows:
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
PREMIUM PREMIUM PREMIUM DIVIDEND
INCOME INCOME 2 INCOME ADVANTAGE
(NPC) (NCL) (NCU) (NAC)
------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $6,242,243 $12,293,836 $5,391,619 $24,320,851
Distributions from net ordinary income ** 59,796 -- -- --
Distributions from net long-term capital gains 357,419 -- -- --
============================================================================================================
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
DIVIDEND DIVIDEND DIVIDEND TAX-FREE
ADVANTAGE 2 ADVANTAGE 3 ADVANTAGE ADVANTAGE
(NVX) (NZH) (NKL) (NKX)
------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $14,342,456 $22,428,037 $ 14,773,957 $5,673,304
Distributions from net ordinary income ** -- -- 1,816,883 --
Distributions from net long-term capital gains -- -- 237,622 --
============================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
69
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
At August 31, 2004, the Funds' last fiscal year end, the following Funds had
unused capital loss carryforwards available for federal income tax purposes to
be applied against future capital gains, if any. If not applied, the
carryforwards will expire as follows:
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
PREMIUM PREMIUM DIVIDEND DIVIDEND TAX-FREE
INCOME 2 INCOME ADVANTAGE 2 ADVANTAGE 3 ADVANTAGE
(NCL) (NCU) (NVX) (NZH) (NKX)
-------------------------------------------------------------------------------------------------
Expiration year:
2005 $ -- $1,049,994 $ -- $ -- $ --
2006 -- -- -- -- --
2007 -- -- -- -- --
2008 -- -- -- -- --
2009 1,544,084 -- -- -- --
2010 440,510 -- -- -- --
2011 -- -- -- 4,394,597 218,696
2012 -- -- 1,479,418 323,840 --
-------------------------------------------------------------------------------------------------
Total $1,984,594 $1,049,994 $1,479,418 $4,718,437 $218,696
=================================================================================================
Insured California Tax-Free Advantage (NKX) elected to defer net realized losses
from investments incurred from November 1, 2003 through August 31, 2004
("post-October losses"), in accordance with Federal income tax regulations.
Post-October losses of $59,857 were treated as having arisen on the first day of
the current fiscal year.
5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Effective January 1, 2005, Nuveen Advisory Corp. ("NAC"), the Funds' previous
Adviser, and its affiliate, Nuveen Institutional Advisory Corp. ("NIAC"), were
merged into Nuveen Asset Management ("NAM"), each wholly owned subsidiaries of
Nuveen Investments, Inc. ("Nuveen"). As a result of the merger, NAM is now the
Adviser to all funds previously advised by either NAC or NIAC.
As approved by the Board of Directors/Trustees, effective August 1, 2004, a
complex-wide management fee structure was adopted for all funds sponsored by the
Adviser, or its predecessor and its affiliates. This fee structure separates
each fund's management fee into two components - a complex-level component,
based on the aggregate amount of all fund assets managed by the Adviser and a
specific fund-level component, based only on the amount of assets within each
individual fund. This pricing structure enables Nuveen fund shareholders to
benefit from growth in the assets within each individual fund as well as from
growth in the amount of complex-wide assets managed by the Adviser. Under no
circumstances will this pricing structure result in a fund paying management
fees at a rate higher than would otherwise have been applicable had the
complex-wide management fee structure not been implemented. As of March 31,
2005, the complex-level fee rate was .1920%; that is, the funds' effective
management fees were reduced by approximately .008%.
Effective August 1, 2004, the annual fund-level fee, payable monthly, for each
of the Funds is based upon the average daily net assets (including net assets
attributable to Preferred shares) of each Fund as follows:
AVERAGE DAILY INSURED CALIFORNIA PREMIUM INCOME (NPC)
NET ASSETS (INCLUDING INSURED CALIFORNIA PREMIUM INCOME 2 (NCL)
NET ASSETS ATTRIBUTABLE CALIFORNIA PREMIUM INCOME (NCU)
TO PREFERRED SHARES) FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For the next $3 billion .3875
For net assets over $5 billion .3750
================================================================================
70
CALIFORNIA DIVIDEND ADVANTAGE (NAC)
CALIFORNIA DIVIDEND ADVANTAGE 2 (NVX)
AVERAGE DAILY CALIFORNIA DIVIDEND ADVANTAGE 3 (NZH)
NET ASSETS (INCLUDING INSURED CALIFORNIA DIVIDEND ADVANTAGE (NKL)
NET ASSETS ATTRIBUTABLE INSURED CALIFORNIA TAX-FREE ADVANTAGE (NKX)
TO PREFERRED SHARES) FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For net assets over $2 billion .3750
================================================================================
Effective August 1, 2004, the annual complex-level fee, payable monthly, which
is additive to the fund-level fee, for all Nuveen sponsored funds in the U.S.,
is based on the aggregate amount of total fund assets managed as follows:
COMPLEX-LEVEL
COMPLEX-LEVEL ASSETS(1) FEE RATE
--------------------------------------------------------------------------------
For the first $55 billion .2000%
For the next $1 billion .1800
For the next $1 billion .1600
For the next $3 billion .1425
For the next $3 billion .1325
For the next $3 billion .1250
For the next $5 billion .1200
For the next $5 billion .1175
For the next $15 billion .1150
For Managed Assets over $91 billion (2) .1400
================================================================================
(1) The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate Managed Assets ("Managed Assets" means
the average daily net assets of each fund including assets attributable to
all types of leverage used by the Nuveen funds) of Nuveen-sponsored funds
in the U.S.
(2) With respect to the complex-wide Managed Assets over $91 billion, the fee
rate or rates that will apply to such assets will be determined at a later
date. In the unlikely event that complex-wide Managed Assets reach $91
billion prior to a determination of the complex-level fee rate or rates to
be applied to Managed Assets in excess of $91 billion, the complex-level
fee rate for such complex-wide Managed Assets shall be .1400% until such
time as a different rate or rates is determined.
Each Fund paid through July 31, 2004, an annual management fee, payable monthly,
at the rates set forth below, which were based upon the average daily net assets
(including net assets attributable to Preferred shares) of each Fund as follows:
AVERAGE DAILY INSURED CALIFORNIA PREMIUM INCOME (NPC)
NET ASSETS (INCLUDING INSURED CALIFORNIA PREMIUM INCOME 2 (NCL)
NET ASSETS ATTRIBUTABLE CALIFORNIA PREMIUM INCOME (NCU)
TO PREFERRED SHARES) MANAGEMENT FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .6500%
For the next $125 million .6375
For the next $250 million .6250
For the next $500 million .6125
For the next $1 billion .6000
For the next $3 billion .5875
For net assets over $5 billion .5750
================================================================================
CALIFORNIA DIVIDEND ADVANTAGE (NAC)
CALIFORNIA DIVIDEND ADVANTAGE 2 (NVX)
AVERAGE DAILY CALIFORNIA DIVIDEND ADVANTAGE 3 (NZH)
NET ASSETS (INCLUDING INSURED CALIFORNIA DIVIDEND ADVANTAGE (NKL)
NET ASSETS ATTRIBUTABLE INSURED CALIFORNIA TAX-FREE ADVANTAGE (NKX)
TO PREFERRED SHARES) MANAGEMENT FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .6500%
For the next $125 million .6375
For the next $250 million .6250
For the next $500 million .6125
For the next $1 billion .6000
For net assets over $2 billion .5750
================================================================================
71
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Directors/Trustees who are affiliated with
the Adviser or to their officers, all of whom receive remuneration for their
services to the Funds from the Adviser or its affiliates. The Board of
Directors/Trustees has adopted a deferred compensation plan for independent
Directors/Trustees that enables Directors/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.
For the first ten years of California Dividend Advantage's (NAC) operations, the
Adviser has agreed to reimburse the Fund, as a percentage of average daily net
assets (including net assets attributable to Preferred shares), for fees and
expenses in the amounts and for the time periods set forth below:
YEAR ENDING YEAR ENDING
JULY 31, JULY 31,
--------------------------------------------------------------------------------
1999* .30% 2005 .25%
2000 .30 2006 .20
2001 .30 2007 .15
2002 .30 2008 .10
2003 .30 2009 .05
2004 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse California Dividend Advantage (NAC) for
any portion of its fees and expenses beyond July 31, 2009.
For the first ten years of California Dividend Advantage 2's (NVX) operations,
the Adviser has agreed to reimburse the Fund, as a percentage of average daily
net assets (including net assets attributable to Preferred shares), for fees and
expenses in the amounts and for the time periods set forth below:
YEAR ENDING YEAR ENDING
MARCH 31, MARCH 31,
--------------------------------------------------------------------------------
2001* .30% 2007 .25%
2002 .30 2008 .20
2003 .30 2009 .15
2004 .30 2010 .10
2005 .30 2011 .05
2006 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse California Dividend Advantage 2 (NVX)
for any portion of its fees and expenses beyond March 31, 2011.
For the first ten years of California Dividend Advantage 3's (NZH) operations,
the Adviser has agreed to reimburse the Fund, as a percentage of average daily
net assets (including net assets attributable to Preferred shares), for fees and
expenses in the amounts and for the time periods set forth below:
YEAR ENDING YEAR ENDING
SEPTEMBER 30, SEPTEMBER 30,
--------------------------------------------------------------------------------
2001* .30% 2007 .25%
2002 .30 2008 .20
2003 .30 2009 .15
2004 .30 2010 .10
2005 .30 2011 .05
2006 .30
================================================================================
* From the commencement of operations.
72
The Adviser has not agreed to reimburse California Dividend Advantage 3 (NZH)
for any portion of its fees and expenses beyond September 30, 2011.
For the first ten years of Insured California Dividend Advantage's (NKL)
operations, the Adviser has agreed to reimburse the Fund, as a percentage of
average daily net assets (including net assets attributable to Preferred
shares), for fees and expenses in the amounts and for the time periods set forth
below:
YEAR ENDING YEAR ENDING
MARCH 31, MARCH 31,
--------------------------------------------------------------------------------
2002* .30% 2008 .25%
2003 .30 2009 .20
2004 .30 2010 .15
2005 .30 2011 .10
2006 .30 2012 .05
2007 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Insured California Dividend Advantage
(NKL) for any portion of its fees and expenses beyond March 31, 2012.
For the first eight years of Insured California Tax-Free Advantage's (NKX)
operations, the Adviser has agreed to reimburse the Fund, as a percentage of
average daily net assets (including net assets attributable to Preferred
shares), for fees and expenses in the amounts and for the time periods set forth
below:
YEAR ENDING YEAR ENDING
NOVEMBER 30, NOVEMBER 30,
--------------------------------------------------------------------------------
2002* .32% 2007 .32%
2003 .32 2008 .24
2004 .32 2009 .16
2005 .32 2010 .08
2006 .32
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Insured California Tax-Free Advantage
(NKX) for any portion of its fees and expenses beyond November 30, 2010.
6. ANNOUNCEMENT REGARDING PARENT COMPANY OF ADVISER
In early April, 2005, The St. Paul Travelers Companies, Inc. ("St. Paul
Travelers"), which owned 79% of Nuveen, (A) completed a public offering of a
substantial portion of its equity stake in Nuveen, (B) sold Nuveen $200 million
of its Nuveen shares, (C) entered into an agreement with Nuveen to sell an
additional $400 million of its Nuveen shares on a "forward" basis with payment
for and settlement of these shares delayed for several months, and (D) entered
into agreements with two unaffiliated investment banking firms to sell an amount
equal to most or all of its remaining Nuveen shares for current payment but for
future settlement. The settlement of transactions (C) and (D) above would likely
be deemed to be an "assignment" (as defined in the 1940 Act) of the investment
management agreements between the Funds and NAM, which would result in the
automatic termination of each agreement under the 1940 Act. The Board of
Directors/Trustees will consider approval of new ongoing investment management
agreements for each Fund and the submission of those agreements for approval by
each respective Fund's shareholders. Those agreements, if approved by a Fund's
shareholders, would take effect upon such approval. There can be no assurance
that these approvals will be obtained.
7. SUBSEQUENT EVENT - DISTRIBUTIONS TO COMMON SHAREHOLDERS
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on April 1, 2005, to shareholders of record on
March 15, 2005, as follows:
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
PREMIUM PREMIUM PREMIUM DIVIDEND
INCOME INCOME 2 INCOME ADVANTAGE
(NPC) (NCL) (NCU) (NAC)
--------------------------------------------------------------------------------
Dividend per share $.0740 $.0730 $.0700 $.0820
================================================================================
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
DIVIDEND DIVIDEND DIVIDEND TAX-FREE
ADVANTAGE 2 ADVANTAGE 3 ADVANTAGE ADVANTAGE
(NVX) (NZH) (NKL) (NKX)
--------------------------------------------------------------------------------
Dividend per share $.0760 $.0720 $.0760 $.0695
================================================================================
73
Financial
HIGHLIGHTS (Unaudited)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
---------------------------------------------------------------- -------------------------------
Distributions Distributions
from Net from Net
Beginning Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
INSURED CALIFORNIA
PREMIUM INCOME (NPC)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2005(a) $16.23 $ .48 $ .03 $(.04) $(.01) $ .46 $(.48) $(.16) $ (.64)
2004 15.59 .99 .68 (.05) -- 1.62 (.93) (.05) .98)
2003 16.17 .99 (.45) (.06) (.01) .47 (.97) (.08) (1.05)
2002 16.04 1.05 .03 (.09) -- .99 (.86) -- (.86)
2001 15.08 1.04 .99 (.21) -- 1.82 (.86) -- (.86)
2000 14.81 1.09 .30 (.24) -- 1.15 (.88) -- (.88)
INSURED CALIFORNIA
PREMIUM INCOME 2 (NCL)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2005(a) 15.12 .46 .10 (.04) -- .52 (.46) -- (.46)
2004 14.60 .96 .53 (.06) -- 1.43 (.91) -- (.91)
2003 15.08 .99 (.51) (.07) -- .41 (.89) -- (.89)
2002 15.01 1.02 (.02) (.10) -- .90 (.83) -- (.83)
2001 14.09 1.01 .91 (.22) -- 1.70 (.78) -- (.78)
2000 13.70 1.02 .41 (.24) -- 1.19 (.80) -- (.80)
CALIFORNIA PREMIUM
INCOME (NCU)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2005(a) 14.51 .45 .34 (.05) -- .74 (.44) -- (.44)
2004 13.66 .94 .85 (.06) -- 1.73 (.88) -- (.88)
2003 14.42 .96 (.78) (.07) -- .11 (.87) -- (.87)
2002 14.22 .99 .13 (.10) -- 1.02 (.82) -- (.82)
2001 13.34 1.00 .90 (.23) -- 1.67 (.79) -- (.79)
2000 13.19 1.03 .14 (.23) -- .94 (.79) -- (.79)
====================================================================================================================================
Total Returns
--------------------
Based
Offering on
Costs and Ending Common
Preferred Common Based Share
Share Share Ending on Net
Underwriting Net Asset Market Market Asset
Discounts Value Value Value** Value**
=============================================================================================
INSURED CALIFORNIA
PREMIUM INCOME (NPC)
---------------------------------------------------------------------------------------------
Year Ended 8/31:
2005(a) $-- $16.05 $16.4600 8.27% 2.82%
2004 -- 16.23 15.8100 11.80 10.64
2003 -- 15.59 15.0700 1.55 2.82
2002 -- 16.17 15.8500 6.73 6.47
2001 -- 16.04 15.6900 14.12 12.43
2000 -- 15.08 14.5625 .84 8.34
INSURED CALIFORNIA
PREMIUM INCOME 2 (NCL)
---------------------------------------------------------------------------------------------
Year Ended 8/31:
2005(a) -- 15.18 14.9900 1.75 3.45
2004 -- 15.12 15.1800 12.71 10.02
2003 -- 14.60 14.3200 2.69 2.71
2002 -- 15.08 14.8000 5.57 6.29
2001 -- 15.01 14.8300 11.99 12.45
2000 -- 14.09 14.0000 3.58 9.21
CALIFORNIA PREMIUM
INCOME (NCU)
---------------------------------------------------------------------------------------------
Year Ended 8/31:
2005(a) -- 14.81 14.2000 7.20 5.14
2004 -- 14.51 13.6700 12.04 12.94
2003 -- 13.66 13.0200 (.91) .69
2002 -- 14.42 14.0000 4.84 7.48
2001 -- 14.22 14.1700 12.84 12.92
2000 -- 13.34 13.3125 5.93 7.63
=============================================================================================
Ratios/Supplemental Data
-------------------------------------------------------------------------------------------------
Before Credit/Reimbursement After Credit/Reimbursement***
------------------------------- -------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Ending Expenses Income to Expenses Income to
Net to Average Average to Average Average
Assets Net Assets Net Assets Net Assets Net Assets
Applicable Applicable Applicable Applicable Applicable Portfolio
to Common to Common to Common to Common to Common Turnover
Shares (000) Shares++ Shares++ Shares++ Shares++ Rate
==============================================================================================================================
INSURED CALIFORNIA
PREMIUM INCOME (NPC)
------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2005(a) $103,478 1.13%* 5.95%* 1.13%* 5.95%* 6%
2004 104,618 1.17 6.17 1.16 6.17 25
2003 100,427 1.17 6.13 1.16 6.14 26
2002 104,137 1.21 6.65 1.19 6.66 30
2001 103,068 1.22 6.77 1.21 6.79 21
2000 96,903 1.25 7.65 1.24 7.66 27
INSURED CALIFORNIA
PREMIUM INCOME 2 (NCL)
------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2005(a) 192,936 1.18* 6.09* 1.17* 6.10* 4
2004 192,035 1.19 6.38 1.19 6.38 35
2003 185,181 1.20 6.53 1.19 6.54 22
2002 190,870 1.23 6.83 1.22 6.84 6
2001 189,633 1.24 7.01 1.24 7.02 18
2000 177,977 1.28 7.65 1.26 7.66 26
CALIFORNIA PREMIUM
INCOME (NCU)
------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2005(a) 85,499 1.22* 6.16* 1.21* 6.17* 6
2004 83,772 1.23 6.62 1.22 6.63 19
2003 78,859 1.24 6.72 1.24 6.72 24
2002 83,249 1.27 7.07 1.26 7.08 10
2001 82,067 1.32 7.36 1.30 7.38 18
2000 76,878 1.38 8.09 1.36 8.10 19
==============================================================================================================================
Preferred Shares at End of Period
----------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
======================================================================
INSURED CALIFORNIA
PREMIUM INCOME (NPC)
----------------------------------------------------------------------
Year Ended 8/31:
2005(a) $45,000 $25,000 $82,488
2004 45,000 25,000 83,121
2003 45,000 25,000 80,793
2002 45,000 25,000 82,854
2001 45,000 25,000 82,260
2000 45,000 25,000 78,835
INSURED CALIFORNIA
PREMIUM INCOME 2 (NCL)
----------------------------------------------------------------------
Year Ended 8/31:
2005(a) 95,000 25,000 75,773
2004 95,000 25,000 75,535
2003 95,000 25,000 73,732
2002 95,000 25,000 75,229
2001 95,000 25,000 74,903
2000 95,000 25,000 71,836
CALIFORNIA PREMIUM
INCOME (NCU)
----------------------------------------------------------------------
Year Ended 8/31:
2005(a) 43,000 25,000 74,709
2004 43,000 25,000 73,704
2003 43,000 25,000 70,848
2002 43,000 25,000 73,400
2001 43,000 25,000 72,714
2000 43,000 25,000 69,696
======================================================================
* Annualized.
** Total Investment Return on Market Value is the combination of changes in
the market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. Total Return on Common Share Net
Asset Value is the combination of changes in Common Share net asset value,
reinvested dividend income at net asset value and reinvested capital gains
distributions at net asset value, if any. Total returns are not annualized.
*** After custodian fee credit and expense reimbursement, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) For the six months ended February 28, 2005.
See accompanying notes to financial statements.
74-75 SPREAD
Financial HIGHLIGHTS (Unaudited) (continued)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
---------------------------------------------------------------- -------------------------------
Distributions Distributions
from Net from Net
Beginning Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
CALIFORNIA DIVIDEND
ADVANTAGE (NAC)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2005(e) $15.59 $ .52 $ .26 $(.05) $ -- $ .73 $(.49) $(.05) $ (.54)
2004 14.82 1.05 .76 (.06) -- 1.75 (.98) -- (.98)
2003 15.24 1.06 (.47) (.07) -- .52 (.94) -- (.94)
2002 15.13 1.07 -- (.10) -- .97 (.86) -- (.86)
2001 13.82 1.07 1.28 (.23) -- 2.12 (.81) -- (.81)
2000 13.33 1.07 .52 (.26) -- 1.33 (.84) -- (.84)
CALIFORNIA DIVIDEND
ADVANTAGE 2 (NVX)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2005(e) 14.97 .49 .36 (.05) -- .80 (.46) -- (.46)
2004 14.18 .99 .77 (.06) -- 1.70 (.91) -- (.91)
2003 14.79 1.00 (.62) (.07) -- .31 (.89) (.03) (.92)
2002 15.11 1.06 (.40) (.11) -- .55 (.87) -- (.87)
2001(a) 14.33 .34 .90 (.05) -- 1.19 (.29) -- (.29)
CALIFORNIA DIVIDEND
ADVANTAGE 3 (NZH)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2005(e) 14.65 .49 .30 (.05) -- .74 (.43) -- (.43)
2004 13.72 .98 .88 (.07) -- 1.79 (.86) -- (.86)
2003 14.33 .98 (.66) (.08) -- .24 (.86) -- (.86)
2002(b) 14.33 .83 .09 (.08) -- .84 (.72) -- (.72)
INSURED CALIFORNIA
DIVIDEND ADVANTAGE (NKL)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2005(e) 15.35 .51 .27 (.05) -- .73 (.46) (.05) (.51)
2004 14.60 1.02 .84 (.06) (.01) 1.79 (.91) (.13) (1.04)
2003 15.14 .99 (.49) (.07) (.01) .42 (.91) (.05) (.96)
2002(c) 14.33 .34 .92 (.03) -- 1.23 (.30) -- (.30)
INSURED CALIFORNIA
TAX-FREE ADVANTAGE (NKX)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2005(e) 14.62 .48 .31 (.05) -- .74 (.44) -- (.44)
2004 13.79 .96 .84 (.06) -- 1.74 (.91) -- (.91)
2003(d) 14.33 .64 (.33) (.04) -- .27 (.60) -- (.60)
====================================================================================================================================
Total Returns
--------------------
Based
Offering on
Costs and Ending Common
Preferred Common Based Share
Share Share Ending on Net
Underwriting Net Asset Market Market Asset
Discounts Value Value Value** Value**
=============================================================================================
CALIFORNIA DIVIDEND
ADVANTAGE (NAC)
---------------------------------------------------------------------------------------------
Year Ended 8/31:
2005(e) $ -- $15.78 $15.0100 3.71% 4.74%
2004 -- 15.59 15.0000 12.07 12.11
2003 -- 14.82 14.3000 4.79 3.37
2002 -- 15.24 14.5500 3.67 6.75
2001 -- 15.13 14.8900 15.06 15.85
2000 -- 13.82 13.7500 (2.18) 10.80
CALIFORNIA DIVIDEND
ADVANTAGE 2 (NVX)
---------------------------------------------------------------------------------------------
Year Ended 8/31:
2005(e) -- 15.31 14.0900 3.38 5.38
2004 -- 14.97 14.0800 13.60 12.11
2003 -- 14.18 13.2400 (.95) 2.16
2002 -- 14.79 14.2800 (.27) 3.90
2001(a) (.12) 15.11 15.2100 3.40 7.55
CALIFORNIA DIVIDEND
ADVANTAGE 3 (NZH)
---------------------------------------------------------------------------------------------
Year Ended 8/31:
2005(e) -- 14.96 13.6500 5.73 5.12
2004 -- 14.65 13.3300 11.97 13.36
2003 .01 13.72 12.7100 (3.20) 1.68
2002(b) (.12) 14.33 14.0000 (1.68) 5.32
INSURED CALIFORNIA
DIVIDEND ADVANTAGE (NKL)
---------------------------------------------------------------------------------------------
Year Ended 8/31:
2005(e) -- 15.57 14.6100 3.07 4.79
2004 -- 15.35 14.6700 12.54 12.53
2003 -- 14.60 14.0000 (.35) 2.70
2002(c) (.12) 15.14 15.0000 2.05 7.84
INSURED CALIFORNIA
TAX-FREE ADVANTAGE (NKX)
---------------------------------------------------------------------------------------------
Year Ended 8/31:
2005(e) -- 14.92 14.7400 7.09 5.15
2004 -- 14.62 14.1900 11.54 12.86
2003(d) (.21) 13.79 13.5600 (5.79) .34
=============================================================================================
Ratios/Supplemental Data
-------------------------------------------------------------------------------------------------
Before Credit/Reimbursement After Credit/Reimbursement***
------------------------------- -------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Ending Expenses Income to Expenses Income to
Net to Average Average to Average Average
Assets Net Assets Net Assets Net Assets Net Assets
Applicable Applicable Applicable Applicable Applicable Portfolio
to Common to Common to Common to Common to Common Turnover
Shares (000) Shares++ Shares++ Shares++ Shares++ Rate
==============================================================================================================================
CALIFORNIA DIVIDEND
ADVANTAGE (NAC)
------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2005(e) $369,416 1.12%* 6.29%* .75%* 6.66%* 1%
2004 365,066 1.14 6.38 .70 6.83 12
2003 346,918 1.15 6.44 .70 6.88 11
2002 356,821 1.18 6.76 .72 7.22 33
2001 354,197 1.19 7.03 .72 7.50 17
2000 323,326 1.24 7.93 .75 8.43 25
CALIFORNIA DIVIDEND
ADVANTAGE 2 (NVX)
------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2005(e) 226,385 1.16* 6.02* .70* 6.48* 1
2004 221,395 1.18 6.24 .72 6.70 13
2003 209,722 1.18 6.30 .73 6.75 40
2002 218,814 1.19 6.82 .73 7.28 32
2001(a) 223,440 1.05* 5.23* .62* 5.65* 40
CALIFORNIA DIVIDEND
ADVANTAGE 3 (NZH)
------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2005(e) 360,724 1.17* 6.15* .70* 6.61* 1
2004 353,360 1.20 6.32 .73 6.78 13
2003 330,829 1.20 6.33 .73 6.79 48
2002(b) 345,470 1.15* 6.01* .69* 6.47* 49
INSURED CALIFORNIA
DIVIDEND ADVANTAGE (NKL)
------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2005(e) 237,559 1.17* 6.15* .71* 6.60* 2
2004 234,186 1.18 6.28 .72 6.74 14
2003 222,751 1.18 6.00 .72 6.46 71
2002(c) 231,062 1.10* 4.98* .60* 5.47* 12
INSURED CALIFORNIA
TAX-FREE ADVANTAGE (NKX)
------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2005(e) 87,764 1.22* 6.06* .73* 6.55* 1
2004 86,008 1.23 6.17 .73 6.67 20
2003(d) 81,141 1.14* 5.25* .67* 5.72* 45
==============================================================================================================================
Preferred Shares at End of Period
----------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
======================================================================
CALIFORNIA DIVIDEND
ADVANTAGE (NAC)
----------------------------------------------------------------------
Year Ended 8/31:
2005(e) $175,000 $25,000 $77,774
2004 175,000 25,000 77,152
2003 175,000 25,000 74,560
2002 175,000 25,000 75,974
2001 175,000 25,000 75,600
2000 175,000 25,000 71,189
CALIFORNIA DIVIDEND
ADVANTAGE 2 (NVX)
----------------------------------------------------------------------
Year Ended 8/31:
2005(e) 110,000 25,000 76,451
2004 110,000 25,000 75,317
2003 110,000 25,000 72,664
2002 110,000 25,000 74,731
2001(a) 110,000 25,000 75,782
CALIFORNIA DIVIDEND
ADVANTAGE 3 (NZH)
----------------------------------------------------------------------
Year Ended 8/31:
2005(e) 187,000 25,000 73,225
2004 187,000 25,000 72,241
2003 187,000 25,000 69,229
2002(b) 187,000 25,000 71,186
INSURED CALIFORNIA
DIVIDEND ADVANTAGE (NKL)
----------------------------------------------------------------------
Year Ended 8/31:
2005(e) 118,000 25,000 75,330
2004 118,000 25,000 74,616
2003 118,000 25,000 72,193
2002(c) 118,000 25,000 73,954
INSURED CALIFORNIA
TAX-FREE ADVANTAGE (NKX)
----------------------------------------------------------------------
Year Ended 8/31:
2005(e) 45,000 25,000 73,758
2004 45,000 25,000 72,782
2003(d) 45,000 25,000 70,078
======================================================================
* Annualized.
** Total Investment Return on Market Value is the combination of changes in
the market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. Total Return on Common Share Net
Asset Value is the combination of changes in Common Share net asset value,
reinvested dividend income at net asset value and reinvested capital gains
distributions at net asset value, if any. Total returns are not annualized.
*** After custodian fee credit and expense reimbursement, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) For the period March 27, 2001 (commencement of operations) through August
31, 2001.
(b) For the period September 25, 2001 (commencement of operations) through
August 31, 2002.
(c) For the period March 25, 2002 (commencement of operations) through August
31, 2002.
(d) For the period November 21, 2002 (commencement of operations) through
August 31, 2003.
(e) For the six months ended February 28, 2005.
See accompanying notes to financial statements.
76-77 SPREAD
Reinvest Automatically
EASILY AND CONVENIENTLY
Sidebar text: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET
UP YOUR REINVESTMENT ACCOUNT.
NUVEEN CLOSED-END EXCHANGE-TRADED FUNDS
DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End Exchange-Traded Fund allows you to conveniently reinvest
dividends and/or capital gains distributions in additional fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive
a statement showing your total dividends and distributions, the date of
investment, the shares acquired and the price per share, and the total number of
shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
then-current market price. If the shares are trading at less than net asset
value, shares for your account will be purchased on the open market. Dividends
and distributions received to purchase shares in the open market will normally
be invested shortly after the dividend payment date. No interest will be paid on
dividends and distributions awaiting reinvestment. Because the market price of
the shares may increase before purchases are completed, the average purchase
price per share may exceed the market price at the time of valuation, resulting
in the acquisition of fewer shares than if the dividend or distribution had been
paid in shares issued by the Fund. A pro rata portion of any applicable
brokerage commissions on open market purchases will be paid by Plan
participants. These commissions usually will be lower than those charged on
individual transactions.
FLEXIBLE
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
78
Other Useful
INFORMATION
Effective Jan. 1, 2005, the asset management services and operations of Nuveen
Advisory Corp. (NAC) and Nuveen Institutional Advisory Corp (NIAC) became part
of Nuveen Asset Management (NAM). This internal consolidation is intended to
simplify the delivery of services to the investment management clients of Nuveen
Investments. It does not affect the investment objectives or portfolio
management of any Fund.
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
Each Fund's (i) quarterly portfolio of investments, (ii) information regarding
how the Funds voted proxies relating to portfolio securities held during the
12-month period ended June 30, 2004, and (iii) a description of the policies and
procedures that the Funds used to determine how to vote proxies relating to
portfolio securities are available without charge, upon request, by calling
Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website at
www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities
and Exchange Commission ("SEC"). The SEC may charge a copying fee for this
information. Visit the SEC on-line at http://www.sec.gov or in person at the
SEC's Public Reference Room in Washington, D.C. Call the SEC at 1-202-942-8090
for room hours and operation. You may also request Fund information by sending
an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public
References Section at 450 Fifth Street NW, Washington, D.C. 20549.
GLOSSARY OF TERMS USED IN THIS REPORT
AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time period. It
expresses the return that would have been necessary each year to equal the
investment's actual cumulative performance (including change in NAV or market
price and reinvested dividends and capital gains distributions, if any) over the
time period being considered.
AVERAGE EFFECTIVE MATURITY: The average of all the maturities of the bonds in a
Fund's portfolio, computed by weighting each maturity date (the date the
security comes due) by the market value of the security. This figure does not
account for the likelihood of prepayments or the exercise of call provisions.
LEVERAGE-ADJUSTED DURATION: Duration is a measure of the sensitivity of a bond
or bond Fund's value to changes when interest rates change. Generally, the
longer a bond or Fund's duration, the more the price of the bond or Fund will
change as interest rates change. Leverage-adjusted duration takes into account
the leveraging process for a Fund and therefore is longer than the duration of
the Fund's portfolio of bonds.
MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An investment's
current annualized dividend divided by its current market price.
NET ASSET VALUE (NAV): A Fund's common share NAV per share is calculated by
subtracting the liabilities of the Fund (including any MuniPreferred shares
issued in order to leverage the Fund) from its total assets and then dividing
the remainder by the number of shares outstanding. Fund NAVs are calculated at
the end of each business day.
TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable investment to
equal, on an after-tax basis, the yield of a municipal bond investment.
BOARD OF DIRECTORS/TRUSTEES
Robert P. Bremner
Lawrence H. Brown
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Eugene S. Sunshine
FUND MANAGER
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
Chicago, IL
Each Fund intends to repurchase shares of its own common or
preferred stock in the future at such times and in such amounts as is deemed
advisable. No shares were repurchased during the period covered by this report.
Any future repurchases will be reported to shareholders in the next annual or
semiannual report.
79
Nuveen Investments:
SERVING Investors
For GENERATIONS
Photo of: 2 women looking at a photo album.
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
WE OFFER MANY DIFFERENT INVESTING SOLUTIONS FOR OUR CLIENTS' DIFFERENT NEEDS.
Managing more than $115 billion in assets, Nuveen Investments offers access to a
number of different asset classes and investing solutions through a variety of
products. Nuveen Investments markets its capabilities under four distinct
brands: Nuveen, a leader in fixed-income investments; NWQ, a leader in
value-style equities; Rittenhouse, a leader in growth-style equities; and
Symphony, a leading institutional manager of market-neutral alternative
investment portfolios.
FIND OUT HOW WE CAN HELP YOU REACH YOUR FINANCIAL GOALS.
To learn more about the products and services Nuveen Investments offers, talk to
your financial advisor, or call us at (800) 257-8787. Please read the
information provided carefully before you invest.
Be sure to obtain a prospectus, where applicable. Investors should consider the
investment objective and policies, risk considerations, charges and expenses of
the Fund carefully before investing. The prospectus contains this and other
information relevant to an investment in the Fund. For a prospectus, please
contact your securities representative or Nuveen Investments, 333 W. Wacker Dr.,
Chicago, IL 60606. Please read the prospectus carefully before you invest or
send money.
o Share prices
Learn more o Fund details
about Nuveen Funds at o Daily financial news
WWW.NUVEEN.COM/ETF o Investor education
o Interactive planning tools
Logo: NUVEEN Investments
ESA-B-0205D
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.
See Schedule I in Item 1.
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: Ex-99.CERT
attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons: Not applicable.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR
270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference. Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen California Dividend Advantage Municipal Fund
-----------------------------------------------------------
By (Signature and Title)* /s/ Jessica R. Droeger
----------------------------------------------
Jessica R. Droeger
Vice President and Secretary
Date: May 6, 2005
-------------------------------------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Gifford R. Zimmerman
----------------------------------------------
Gifford R. Zimmerman
Chief Administrative Officer
(principal executive officer)
Date: May 6, 2005
-------------------------------------------------------------------
By (Signature and Title)* /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: May 6, 2005
-------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.