Nuveen California AMT-Free Quality Municipal Income Fund

 

 

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-21212

Nuveen California AMT-Free Quality Municipal Income Fund

(Exact name of registrant as specified in charter)

Nuveen Investments

    333 West Wacker Drive, Chicago, Illinois 60606    

(Address of principal executive offices) (Zip code)

Gifford R. Zimmerman

Vice President and Secretary

    333 West Wacker Drive, Chicago, Illinois 60606    

(Name and address of agent for service)

Registrant’s telephone number, including area code:     312-917-7700    

Date of fiscal year end:       February 28      

Date of reporting period: May 31, 2017

Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q 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 the 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. § 3507.

 

 

 

 

 

Item 1. Schedule of Investments

 

 

NKX
Nuveen California AMT-Free Quality Municipal Income Fund
Portfolio of Investments May 31, 2017 (Unaudited)
Principal Amount (000)   Description (1)   Optional Call Provisions (2) Ratings (3) Value
    LONG-TERM INVESTMENTS – 154.9% (100.0% of Total Investments)        
    MUNICIPAL BONDS – 154.9% (100.0% of Total Investments)        
    Consumer Staples – 9.7% (6.3% of Total Investments)        
$ 715   California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Alameda County Tobacco Asset Securitization Corporation, Series 2002, 5.750%, 6/01/29   8/17 at 100.00 Baa1 $719,290
    California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Los Angeles County Securitization Corporation, Series 2006A:        
6,350   5.600%, 6/01/36   12/18 at 100.00 B3 6,514,084
325   5.650%, 6/01/41   12/18 at 100.00 B2 330,954
2,780   5.700%, 6/01/46   12/18 at 100.00 B2 2,789,118
60   California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Sonoma County Tobacco Securitization Corporation, Series 2005, 4.250%, 6/01/21   8/17 at 100.00 BBB+ 60,014
1,960   California Statewide Financing Authority, Tobacco Settlement Asset-Backed Bonds, Pooled Tobacco Securitization Program, Series 2002A, 5.625%, 5/01/29   8/17 at 100.00 Baa2 1,972,740
16,380   Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Senior Convertible Series 2007A-2, 5.300%, 6/01/37   6/22 at 100.00 B 16,674,021
    Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-1:        
9,915   5.000%, 6/01/33   6/17 at 100.00 B+ 9,963,583
13,560   5.125%, 6/01/47   6/17 at 100.00 B- 13,559,322
10,295   5.750%, 6/01/47   6/17 at 100.00 B3 10,371,183
    Tobacco Securitization Authority of Northern California, Tobacco Settlement Asset-Backed Bonds, Series 2005A-1:        
8,450   5.375%, 6/01/38   8/17 at 100.00 B- 8,449,409
2,000   5.500%, 6/01/45   8/17 at 100.00 B- 1,994,900
72,790   Total Consumer Staples       73,398,618
    Education and Civic Organizations – 3.7% (2.4% of Total Investments)        
1,050   ABAG Finance Authority for Non-Profit Corporations, California, Revenue Bonds, The Jackson Laboratory, Series 2012, 5.000%, 7/01/37   7/22 at 100.00 A1 1,153,499
3,000   California Educational Facilities Authority, Revenue Bonds, Pepperdine University, Series 2015, 5.000%, 9/01/40   9/25 at 100.00 AA 3,497,490
2,000   California Educational Facilities Authority, Revenue Bonds, Stanford University, Refunding Series 2014U-6, 5.000%, 5/01/45   No Opt. Call AAA 2,710,980
4,475   California Municipal Finance Authority Charter School Revenue Bonds, Albert Einstein Academies Project, Series 2013A, 7.125%, 8/01/43   8/23 at 100.00 B+ 4,944,293
1,780   California Municipal Finance Authority, Charter School Revenue Bonds, Rocketship Education-Multiple Projects, Series 2014A, 7.250%, 6/01/43   6/22 at 102.00 N/R 2,027,224
1,600   California Municipal Finance Authority, Revenue Bonds, Goodwill Industries of Sacramento Valley & Northern Nevada Project, Series 2012A, 144A, 6.875%, 1/01/42   1/22 at 100.00 N/R 1,735,056

Principal Amount (000)   Description (1)   Optional Call Provisions (2) Ratings (3) Value
    Education and Civic Organizations (continued)        
$ 635   California School Finance Authority, School Facility Revenue Bonds, Alliance for College-Ready Public Schools Project, Series 2015A, 144A, 5.000%, 7/01/45   7/25 at 100.00 BBB $681,907
750   California School Finance Authority, School Facility Revenue Bonds, Alliance for College-Ready Public Schools Project, Series 2016A, 144A, 5.000%, 7/01/46   7/25 at 100.00 BBB 805,403
4,925   California School Finance Authority, School Facility Revenue Bonds, Alliance for College-Ready Public Schools Project, Series 2016C, 5.000%, 7/01/46   7/25 at 101.00 BBB 5,321,216
280   California School Finance Authority, School Facility Revenue Bonds, Value Schools, Series 2016A, 144A, 5.750%, 7/01/41   7/26 at 100.00 BB+ 290,612
2,000   California State University, Systemwide Revenue Bonds, Refunding Series 2015A, 5.000%, 11/01/38   11/25 at 100.00 Aa2 2,345,860
1,725   California State University, Systemwide Revenue Bonds, Series 2016A, 4.000%, 11/01/38   5/26 at 100.00 Aa2 1,834,037
185   California Statewide Communities Development Authority, Charter School Revenue Bonds, Rocketship 4 - Mosaic Elementary Charter School, Series 2011A, 8.500%, 12/01/41   12/21 at 100.00 N/R 215,662
300   California Statewide Communities Development Authority, School Facility Revenue Bonds, Alliance College-Ready Public Schools, Series 2011A, 7.000%, 7/01/46   7/21 at 100.00 BBB- 339,537
24,705   Total Education and Civic Organizations       27,902,776
    Health Care – 19.4% (12.5% of Total Investments)        
430   California Health Facilities Financing Authority, California, Revenue Bonds, Sutter Health, Refunding Series 2015A, 5.000%, 8/15/43   8/25 at 100.00 AA- 488,441
    California Health Facilities Financing Authority, California, Revenue Bonds, Sutter Health, Refunding Series 2016B:        
13,295   4.000%, 11/15/41   11/26 at 100.00 AA- 13,804,331
14,415   5.000%, 11/15/46   11/26 at 100.00 AA- 16,530,113
    California Health Facilities Financing Authority, California, Revenue Bonds, Sutter Health, Series 2016A:        
18,430   5.000%, 11/15/41   11/25 at 100.00 AA- 21,120,043
5,500   5.000%, 11/15/46   11/25 at 100.00 AA- 6,272,530
1,630   California Health Facilities Financing Authority, Revenue Bonds, Children's Hospital Los Angeles, Series 2010A, 5.250%, 7/01/38  –  AGC Insured   7/20 at 100.00 AA 1,763,693
1,255   California Health Facilities Financing Authority, Revenue Bonds, Children's Hospital Los Angeles, Series 2012A, 5.000%, 11/15/29   11/22 at 100.00 BBB+ 1,409,227
875   California Health Facilities Financing Authority, Revenue Bonds, Children's Hospital Los Angeles, Series 2017A, 5.000%, 8/15/47 (WI/DD, Settling 6/06/17)   8/27 at 100.00 BBB+ 989,712
1,000   California Health Facilities Financing Authority, Revenue Bonds, City of Hope National Medical Center, Series 2012A, 5.000%, 11/15/35   11/22 at 100.00 AA- 1,139,880
10,000   California Health Facilities Financing Authority, Revenue Bonds, Kaiser Permanente System, Series 2017A-2, 4.000%, 11/01/44   11/27 at 100.00 AA- 10,353,500
2,520   California Health Facilities Financing Authority, Revenue Bonds, Lucile Salter Packard Children's Hospital, Series 2014A, 5.000%, 8/15/43   8/24 at 100.00 AA 2,833,866
2,000   California Health Facilities Financing Authority, Revenue Bonds, Memorial Health Services, Series 2012A, 5.000%, 10/01/33   10/22 at 100.00 AA- 2,281,380
1,405   California Health Facilities Financing Authority, Revenue Bonds, Providence Health & Services, Refunding Series 2014A, 5.000%, 10/01/38   10/24 at 100.00 AA- 1,620,653
2,800   California Health Facilities Financing Authority, Revenue Bonds, Providence Health & Services, Series 2014B, 5.000%, 10/01/44   10/24 at 100.00 AA- 3,142,552

Principal Amount (000)   Description (1)   Optional Call Provisions (2) Ratings (3) Value
    Health Care (continued)        
$ 3,705   California Health Facilities Financing Authority, Revenue Bonds, Providence Saint Joseph Health, Refunding Series 2016A, 4.000%, 10/01/47   10/26 at 100.00 AA- $3,833,341
335   California Health Facilities Financing Authority, Revenue Bonds, Rady Children's Hospital - San Diego, Series 2011, 5.250%, 8/15/41   8/21 at 100.00 AA 368,731
750   California Municipal Finance Authority, Revenue Bonds, Eisenhower Medical Center, Series 2010A, 5.750%, 7/01/40   7/20 at 100.00 Baa2 821,183
250   California Municipal Finance Authority, Revenue Bonds, Eisenhower Medical Center, Series 2017A, 5.000%, 7/01/42 (WI/DD, Settling 7/06/17)   7/27 at 100.00 BBB 283,630
1,690   California Municipal Finance Authority, Revenue Bonds, NorthBay Healthcare Group, Series 2017A, 5.250%, 11/01/36   11/26 at 100.00 BBB- 1,940,086
5,200   California Statewide Communities Development Authority, California, Revenue Bonds, Loma Linda University Medical Center, Series 2014A, 5.250%, 12/01/44   12/24 at 100.00 BB+ 5,649,176
14,740   California Statewide Communities Development Authority, California, Revenue Bonds, Loma Linda University Medical Center, Series 2016A, 144A, 5.250%, 12/01/56   6/26 at 100.00 BB+ 16,118,780
    California Statewide Community Development Authority, Revenue Bonds, Children's Hospital of Los Angeles, Series 2007:        
2,995   5.000%, 8/15/39  –  NPFG Insured   8/17 at 100.00 AA- 3,016,025
6,500   5.000%, 8/15/47   8/17 at 100.00 BBB+ 6,541,990
    California Statewide Community Development Authority, Revenue Bonds, Daughters of Charity Health System, Series 2005A:        
770   5.750%, 7/01/24 (4)   8/17 at 100.00 CCC 765,981
4,240   5.750%, 7/01/30 (4)   8/17 at 100.00 CCC 4,144,600
105   5.750%, 7/01/35 (4)   8/17 at 100.00 CCC 100,559
6,160   California Statewide Community Development Authority, Revenue Bonds, Sherman Oaks Health System, Series 1998A, 5.000%, 8/01/22  –  AMBAC Insured   No Opt. Call AA- 6,877,578
    Marysville, California, Revenue Bonds, Fremont-Rideout Health Group, Series 2011:        
25   5.250%, 1/01/23   1/21 at 100.00 BBB- 25,296
25   4.500%, 1/01/26   1/21 at 100.00 BBB- 24,339
75   5.000%, 1/01/29   1/21 at 100.00 BBB- 75,278
275   5.000%, 1/01/30   1/21 at 100.00 BBB- 275,569
525   5.000%, 1/01/31   1/21 at 100.00 BBB- 523,441
810   5.125%, 1/01/32   1/21 at 100.00 BBB- 812,989
3,750   5.250%, 1/01/42   1/21 at 100.00 BBB- 3,763,762
    Palomar Pomerado Health Care District, California, Certificates of Participation, Series 2010:        
1,500   6.000%, 11/01/30   11/20 at 100.00 BBB- 1,625,865
2,595   6.000%, 11/01/41   11/20 at 100.00 BBB- 2,832,105
1,000   Rancho Mirage Joint Powers Financing Authority, California, Revenue Bonds, Eisenhower Medical Center, Refunding Series 2007A, 5.000%, 7/01/38   7/17 at 100.00 Baa2 1,002,160
850   San Buenaventura, California, Revenue Bonds, Community Memorial Health System, Series 2011, 7.500%, 12/01/41   12/21 at 100.00 BB+ 1,000,492
134,425   Total Health Care       146,172,877
    Housing/Multifamily – 2.5% (1.6% of Total Investments)        
475   California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects Series 2010A, 6.400%, 8/15/45   8/20 at 100.00 BBB 517,783

Principal Amount (000)   Description (1)   Optional Call Provisions (2) Ratings (3) Value
    Housing/Multifamily (continued)        
$ 155   California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects Series 2012A, 5.500%, 8/15/47   8/22 at 100.00 BBB $171,805
350   California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects Series 2012B, 7.250%, 8/15/47   8/22 at 100.00 A1 400,544
    California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Windsor Mobile Country Club Series 2013A:        
2,000   5.625%, 11/15/33   11/23 at 100.00 BBB 2,258,500
8,000   6.000%, 11/15/48   11/23 at 100.00 BBB 9,156,800
    California Municipal Finance Authority, Mobile Home Park Senior Revenue Bonds, Caritas Affordable Housing, Inc. Projects, Series 2014A:        
260   5.250%, 8/15/39   8/24 at 100.00 BBB 288,018
705   5.250%, 8/15/49   8/24 at 100.00 BBB 776,254
140   California Public Finance Authority, University Housing Revenue Bonds, National Campus Community Development - Claremont Properties LLC Claremont Colleges Project, Series 2017A, 144A, 5.000%, 7/01/37   7/27 at 100.00 Ba2 152,368
3,285   Independent Cities Finance Authority, California, Mobile Home Park Revenue Bonds, Rancho Vallecitos Mobile Home Park, Series 2013, 5.000%, 4/15/38   4/23 at 100.00 A- 3,555,684
    La Verne, California, Mobile Home Park Revenue Bonds, Copacabana Mobile Home Park, Refunding Series 2014:        
670   5.000%, 6/15/44   6/24 at 100.00 A 737,918
185   5.000%, 6/15/49   6/24 at 100.00 A 202,936
835   Poway, California, Housing Revenue Bonds, Revenue Bonds, Poinsettia Mobile Home Park, Series 2003, 5.000%, 5/01/23   7/17 at 100.00 AA- 837,204
17,060   Total Housing/Multifamily       19,055,814
    Long-Term Care – 1.2% (0.8% of Total Investments)        
3,000   ABAG Finance Authority for Non-Profit Corporations, California, Cal-Mortgage Insured Revenue Bonds, Channing House, Series 2010, 6.125%, 5/15/40   5/20 at 100.00 AA- 3,449,730
2,250   California Health Facilities Financing Authority, Insured Revenue Bonds, Community Program for Persons with Developmental Disabilities, Series 2011A, 6.250%, 2/01/26   2/21 at 100.00 AA- 2,618,595
1,300   California Health Facilities Financing Authority, Revenue Bonds, Northern California Presbyterian Homes & Services Inc., Refunding Series 2015, 5.000%, 7/01/39   7/25 at 100.00 AA- 1,480,362
1,500   California Statewide Communities Development Authority, Revenue Bonds, Front Porch Communities and Services Project, Series 2007A, 144A, 5.125%, 4/01/37   8/17 at 100.00 BBB+ 1,502,700
8,050   Total Long-Term Care       9,051,387
    Tax Obligation/General – 30.6% (19.8% of Total Investments)        
3,000   Alhambra Unified School District, Los Angeles County, California, General Obligation Bonds, Refunding Series 2012A, 5.000%, 8/01/29  –  AGM Insured   8/22 at 100.00 Aa2 3,510,330
1,000   California State, General Obligation Bonds, Refunding Series 2011, 5.250%, 9/01/25   9/21 at 100.00 AA- 1,170,020
    California State, General Obligation Bonds, Refunding Various Purpose Series 2016:        
6,195   5.000%, 8/01/30   8/26 at 100.00 AA- 7,534,917
1,600   5.000%, 8/01/33   8/26 at 100.00 AA- 1,914,240
4,910   California State, General Obligation Bonds, Various Purpose Refunding Series 2014, 5.000%, 10/01/32   10/24 at 100.00 AA- 5,814,324

Principal Amount (000)   Description (1)   Optional Call Provisions (2) Ratings (3) Value
    Tax Obligation/General (continued)        
$ 5,000   California State, General Obligation Bonds, Various Purpose Refunding Series 2015, 5.000%, 8/01/31   2/25 at 100.00 AA- $5,928,300
    California State, General Obligation Bonds, Various Purpose Series 2009:        
1,300   5.500%, 11/01/39   11/19 at 100.00 AA- 1,427,335
2,350   6.000%, 11/01/39   11/19 at 100.00 AA- 2,632,517
6,000   California State, General Obligation Bonds, Various Purpose Series 2010, 6.000%, 3/01/33   3/20 at 100.00 AA- 6,769,740
    California State, General Obligation Bonds, Various Purpose Series 2011:        
2,000   5.000%, 9/01/31   9/21 at 100.00 AA- 2,293,360
4,090   5.000%, 9/01/41   9/21 at 100.00 AA- 4,575,033
2,625   5.000%, 10/01/41   10/21 at 100.00 AA- 2,942,126
    California State, General Obligation Bonds, Various Purpose Series 2013:        
3,500   5.000%, 4/01/37   4/23 at 100.00 AA- 4,004,770
2,000   5.000%, 2/01/43   2/23 at 100.00 AA- 2,268,240
5,520   5.000%, 11/01/43   11/23 at 100.00 AA- 6,350,981
    California State, General Obligation Bonds, Various Purpose Series 2014:        
2,460   5.000%, 10/01/39   10/24 at 100.00 AA- 2,857,142
9,000   5.000%, 12/01/43   12/23 at 100.00 AA- 10,371,330
9,000   5.000%, 10/01/44   10/24 at 100.00 AA- 10,413,900
    California State, General Obligation Bonds, Various Purpose Series 2015:        
8,000   5.000%, 3/01/45   3/25 at 100.00 AA- 9,236,240
2,000   5.000%, 8/01/45   8/25 at 100.00 AA- 2,323,900
20,750   Coachella Valley Unified School District, Riverside County, California, General Obligation Bonds, Election 2005 Series 2010C, 0.000%, 8/01/43  –  AGM Insured   No Opt. Call AA 7,203,362
8,295   Los Angeles Community College District, California, General Obligation Bonds, Refunding Series 2015A, 5.000%, 8/01/30   8/24 at 100.00 AA+ 9,980,876
5,000   Los Angeles Unified School District, Los Angeles County, California, General Obligation Bonds, Refunding Series 2014C, 5.000%, 7/01/29   7/24 at 100.00 Aa2 5,997,000
3,065   Lucia Mar Unified School District, San Luis Obispo County, California, General Obligation Bonds, Election 2016 Series 2017A, 4.000%, 8/01/46   8/27 at 100.00 Aa2 3,221,836
4,500   Mount Diablo Unified School District, Contra Costa County, California, General Obligation Bonds, Series 2010A, 0.000%, 8/01/30  –  AGM Insured (5)   8/25 at 100.00 AA 4,239,405
1,125   San Diego Unified School District, San Diego County, California, General Obligation Bonds, Election of 1998, Series 1999A, 0.000%, 7/01/21  –  FGIC Insured   No Opt. Call Aa2 1,058,400
11,980   San Diego Unified School District, San Diego County, California, General Obligation Bonds, Refunding Series 2012R-1, 0.000%, 7/01/31   No Opt. Call Aa2 7,597,476
2,670   San Mateo Union High School District, San Mateo County, California, General Obligation Bonds, Capital Appreciation, Election 2010, Refunding Series 2011A, 0.000%, 9/01/33 (5)   No Opt. Call Aaa 2,117,791
2,870   Sanger Unified School District, Fresno County, California, General Obligation Bonds, Election 2012, Series 2014B, 5.000%, 8/01/39  –  AGM Insured   8/24 at 100.00 AA 3,265,342
10,000   Southwestern Community College District, San Diego County, California, General Obligation Bonds, Election of 2008, Series 2011C, 0.000%, 8/01/41   No Opt. Call Aa2 3,871,500
    Stockton Unified School District, San Joaquin County, California, General Obligation Bonds, Election 2008 Series 2011D:        

Principal Amount (000)   Description (1)   Optional Call Provisions (2) Ratings (3) Value
    Tax Obligation/General (continued)        
$ 23,280   0.000%, 8/01/47  –  AGC Insured   8/37 at 100.00 AA $20,826,754
38,845   0.000%, 8/01/50  –  AGM Insured (5)   8/37 at 100.00 AA 34,936,805
15,780   Sylvan Union School District, Stanislaus County, California, General Obligation Bonds, Election of 2006, Series 2010, 0.000%, 8/01/49  –  AGM Insured (5)   No Opt. Call AA 11,088,764
5,000   Walnut Valley Unified School District, Los Angeles County, California, General Obligation Bonds, Election 2007 Measure S, Series 2014C, 5.000%, 8/01/39   8/24 at 100.00 Aa2 5,822,500
3,905   West Kern Community College District, California, General Obligation Bonds, Election 2004, Series 2007C, 5.000%, 10/01/32  –  SYNCORA GTY Insured   11/17 at 100.00 A+ 3,957,717
8,345   Yosemite Community College District, California, General Obligation Bonds, Capital Appreciation, Election 2004, Series 2010D, 0.000%, 8/01/42 (5)   No Opt. Call Aa2 5,754,879
4,000   Yosemite Community College District, California, General Obligation Bonds, Refunding Series 2015, 5.000%, 8/01/32   8/25 at 100.00 Aa2 4,757,200
1,000   Yuba Community College District, California, General Obligation Bonds, Election 2006 Series 2011C, 5.250%, 8/01/47   8/21 at 100.00 Aa2 1,133,460
251,960   Total Tax Obligation/General       231,169,812
    Tax Obligation/Limited – 37.2% (24.0% of Total Investments)        
2,000   Baldwin Park Public Financing Authority, California, Sales Tax and Tax Allocation Bonds, Puente Merced Redevelopment Project, Series 2003, 5.250%, 8/01/21   8/17 at 100.00 BBB 2,014,980
655   Beaumont Financing Authority, California, Local Agency Revenue Bonds, Improvement Area 19C, Series 2013A, 5.000%, 9/01/27   9/23 at 100.00 N/R 731,491
1,000   Bell Community Redevelopment Agency, California, Tax Allocation Bonds, Bell Project Area, Series 2003, 5.625%, 10/01/33  –  RAAI Insured   8/17 at 100.00 AA 1,002,170
7,895   Brea and Olinda Unified School District, Orange County, California, Certificates of Participation Refunding, Series 2002A, 5.125%, 8/01/26  –  AGM Insured   8/17 at 100.00 AA 7,922,238
3,000   California Infrastructure and Economic Development Bank, Infrastructure State Revolving Fund Revenue Bonds, Series 2016A, 5.000%, 10/01/41   10/26 at 100.00 AAA 3,584,940
    California Infrastructure and Economic Development Bank, Revenue Bonds, North County Center for Self-Sufficiency Corporation, Series 2004:        
1,215   5.000%, 12/01/19  –  AMBAC Insured   8/17 at 100.00 AA 1,253,831
1,535   5.000%, 12/01/20  –  AMBAC Insured   8/17 at 100.00 AA 1,584,059
1,615   5.000%, 12/01/21  –  AMBAC Insured   8/17 at 100.00 AA 1,666,615
1,695   5.000%, 12/01/22  –  AMBAC Insured   8/17 at 100.00 AA 1,749,172
1,780   5.000%, 12/01/23  –  AMBAC Insured   8/17 at 100.00 AA 1,836,889
1,865   5.000%, 12/01/24  –  AMBAC Insured   8/17 at 100.00 AA 1,924,605
7,000   California State Public Works Board, Lease Revenue Bonds, Department of Corrections & Rehabilitation, Various Correctional Facilities Series 2013F, 5.250%, 9/01/31   9/23 at 100.00 A+ 8,330,140
    California State Public Works Board, Lease Revenue Bonds, Department of Education, Riverside Campus Project, Series 2012H:        
2,790   5.000%, 4/01/30   4/22 at 100.00 A+ 3,204,929
2,065   5.000%, 4/01/31   4/22 at 100.00 A+ 2,364,384
3,740   California State Public Works Board, Lease Revenue Bonds, Department of Veterans Affairs, Southern California Veterans Home - Chula Vista Facility, Series 1999A, 5.600%, 11/01/19  –  AMBAC Insured   11/17 at 100.00 A+ 3,754,324
20,330   California State Public Works Board, Lease Revenue Bonds, Judicial Council of California, New Stockton Courthouse, Series 2014B, 5.000%, 10/01/39   10/24 at 100.00 A+ 23,421,176

Principal Amount (000)   Description (1)   Optional Call Provisions (2) Ratings (3) Value
    Tax Obligation/Limited (continued)        
$ 1,990   California State Public Works Board, Lease Revenue Bonds, Judicial Council of California, Various Projects Series 2013A, 5.000%, 3/01/33   3/23 at 100.00 A+ $2,268,560
3,020   Chino Redevelopment Agency, California, Merged Chino Redevelopment Project Area Tax Allocation Bonds, Series 2006, 5.000%, 9/01/38  –  AMBAC Insured   9/17 at 100.00 A 3,044,583
    Compton Community Redevelopment Agency, California, Tax Allocation Revenue Bonds, Redevelopment Projects, Second Lien Series 2010B:        
1,230   5.000%, 8/01/25   8/20 at 100.00 N/R 1,337,195
530   5.750%, 8/01/26   8/20 at 100.00 N/R 585,406
3,145   Culver City Redevelopment Agency, California, Tax Allocation Revenue Bonds, Redevelopment Project, Series 2002A, 5.125%, 11/01/25  –  NPFG Insured   8/17 at 100.00 AA- 3,150,189
    El Monte, California, Senior Lien Certificates of Participation, Department of Public Services Facility Phase II, Series 2001:        
5,885   5.000%, 1/01/21  –  AMBAC Insured   7/17 at 100.00 Aa3 6,053,723
5,000   5.250%, 1/01/34  –  AMBAC Insured   7/17 at 100.00 Aa3 5,160,400
350   Fontana Redevelopment Agency, San Bernardino County, California, Tax Allocation Bonds, Jurupa Hills Redevelopment Project, Refunding Series 1997A, 5.500%, 10/01/27   10/17 at 100.00 A 355,072
1,000   Fullerton Community Facilities District 1, California, Special Tax Bonds, Amerige Heights, Refunding Series 2012, 5.000%, 9/01/32   9/22 at 100.00 A- 1,119,640
40,824   Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement Asset-Backed Revenue Bonds, Refunding Series 2015A, 5.000%, 6/01/45   6/25 at 100.00 A+ 46,531,927
1,000   Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement Asset-Backed Revenue Bonds, Series 2013A, 5.000%, 6/01/30   6/23 at 100.00 A+ 1,154,860
    Government of Guam, Business Privilege Tax Bonds, Refunding Series 2015D:        
7,610   5.000%, 11/15/30   11/25 at 100.00 A 8,459,048
4,000   5.000%, 11/15/34   11/25 at 100.00 A 4,353,320
425   Hesperia Community Redevelopment Agency, California, Tax Allocation Bonds, Series 2005A, 5.000%, 9/01/35  –  SYNCORA GTY Insured   8/17 at 100.00 BBB 426,067
3,345   Hesperia Public Financing Authority, California, Redevelopment and Housing Projects Tax Allocation Bonds, Series 2007A, 5.000%, 9/01/37  –  SYNCORA GTY Insured   9/17 at 100.00 N/R 3,356,607
2,115   Inglewood Redevelopment Agency, California, Tax Allocation Bonds, Merged Redevelopment Project, Refunding Series 1998A, 5.250%, 5/01/23  –  AMBAC Insured   No Opt. Call N/R 2,334,051
    Lake Elsinore Public Financing Authority, California, Local Agency Revenue Bonds, Canyon Hills Improvement Area D, Series 2014A:        
1,140   5.500%, 9/01/33   9/23 at 100.00 N/R 1,268,729
2,105   5.750%, 9/01/44   9/23 at 100.00 N/R 2,335,434
1,375   Lake Elsinore Public Financing Authority, California, Local Agency Revenue Bonds, Refunding Series 2015, 5.000%, 9/01/40   9/25 at 100.00 N/R 1,495,230
2,000   Lammersville Joint Unified School District, California, Special Tax Bonds, Community Facilities District 2007-1 Mountain House - Shea Homes Improvement Area 1, Series 2013, 6.000%, 9/01/38   9/23 at 100.00 N/R 2,328,040
1,000   Lathrop, California, Limited Obligation Improvement Bonds, Crossroads Assessment District, Series 2015, 5.000%, 9/02/40   9/25 at 100.00 N/R 1,015,140
6,190   Los Angeles Community Redevelopment Agency, California, Lease Revenue Bonds, Vermont Manchester Social Services Project, Series 2005, 5.000%, 9/01/37  –  AMBAC Insured   8/17 at 100.00 Aa3 6,263,042
3,220   Los Angeles County Metropolitan Transportation Authority, California, Proposition C Sales Tax Revenue Bonds, Senior Lien Series 2017A, 5.000%, 7/01/42   7/27 at 100.00 AA+ 3,844,744

Principal Amount (000)   Description (1)   Optional Call Provisions (2) Ratings (3) Value
    Tax Obligation/Limited (continued)        
$ 1,500   Los Osos, California, Improvement Bonds, Community Services Wastewater Assessment District 1, Series 2002, 5.000%, 9/02/33  –  NPFG Insured   9/17 at 100.00 AA- $1,504,890
475   Lynwood Redevelopment Agency, California, Project A Revenue Bonds, Subordinate Lien Series 2011A, 7.250%, 9/01/38   9/21 at 100.00 A- 575,448
9,270   Moreno Valley Community Redevelopment Agency, California, Tax Allocation Bonds, Series 2007A, 5.000%, 8/01/38  –  AMBAC Insured   8/17 at 100.00 A- 9,328,401
3,230   Murrieta Redevelopment Agency, California, Tax Allocation Bonds, Series 2005, 5.000%, 8/01/35  –  NPFG Insured   8/17 at 100.00 AA- 3,240,627
170   National City Community Development Commission, California, Tax Allocation Bonds, National City Redevelopment Project, Series 2011, 6.500%, 8/01/24   8/21 at 100.00 A 204,661
65   Novato Redevelopment Agency, California, Tax Allocation Bonds, Hamilton Field Redevelopment Project, Series 2011, 6.750%, 9/01/40   9/21 at 100.00 BBB+ 76,760
2,810   Oakland Joint Powers Financing Authority, California, Lease Revenue Bonds, Administration Building Projects, Series 2008B, 5.000%, 8/01/21  –  AGC Insured   8/18 at 100.00 AA 2,937,939
590   Patterson Public Finance Authority, California, Revenue Bonds, Community Facilities District 2001-1, Subordinate Lien Series 2013B, 5.875%, 9/01/39   9/23 at 100.00 N/R 648,664
    Patterson Public Financing Authority, California, Revenue Bonds, Community Facilities District 2001-1, Senior Series 2013A:        
3,785   5.250%, 9/01/30   9/23 at 100.00 N/R 4,127,845
3,405   5.750%, 9/01/39   9/23 at 100.00 N/R 3,716,319
1,975   Perris Joint Powers Authority, California, Local Agency Revenue Bonds, Community Facilities District 2001-1 May Farms Improvement Area 1,2 and 3, Refunding Series 2014A, 5.375%, 9/01/33   9/23 at 100.00 N/R 2,190,512
    Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, Series 2007A:        
5,000   0.000%, 8/01/44  –  NPFG Insured   No Opt. Call AA- 1,071,850
7,200   0.000%, 8/01/45  –  NPFG Insured   No Opt. Call AA- 1,458,432
1,115   Rio Elementary School District, California, Special Tax Bonds, Community Facilities District 1, Series 2013, 5.500%, 9/01/39   9/23 at 100.00 N/R 1,230,592
40   Riverside County Redevelopment Agency, California, Tax Allocation Bonds, Jurupa Valley Project Area, Series 2011B, 6.500%, 10/01/25   10/21 at 100.00 A 47,710
    Riverside County, California, Special Tax Bonds, Community Facilities District 05-8 Scott Road, Series 2013:        
660   5.000%, 9/01/32   9/22 at 100.00 N/R 711,995
1,775   5.000%, 9/01/42   9/22 at 100.00 N/R 1,885,831
1,000   Rocklin Unified School District, Placer County, California, Special Tax Bonds, Community Facilities District 1, Series 2004, 5.000%, 9/01/25  –  NPFG Insured   7/17 at 100.00 AA- 1,003,290
4,475   Roseville Finance Authority, California, Special Tax Revenue Bonds, Series 2007A, 5.000%, 9/01/33  –  AMBAC Insured   9/17 at 100.00 N/R 4,490,528
1,500   Roseville, California, Special Tax Bonds, Community Facilities District 1 Fiddyment Ranch, Series 2005, 5.050%, 9/01/30   9/17 at 100.00 N/R 1,506,480
400   Roseville, California, Special Tax Bonds, Community Facilities District 1 Westpark, Refunding Series 2015, 5.000%, 9/01/33   9/25 at 100.00 N/R 442,952
    Sacramento Area Flood Control Agency, California, Consolidated Capital Assessment District 2 Bonds, Series 2016A:        
3,695   5.000%, 10/01/36   10/26 at 100.00 AA 4,378,464
6,000   5.000%, 10/01/41   10/26 at 100.00 AA 7,045,020

Principal Amount (000)   Description (1)   Optional Call Provisions (2) Ratings (3) Value
    Tax Obligation/Limited (continued)        
$ 1,050   Sacramento City Financing Authority, California, Lease Revenue Refunding Bonds, Series 1993A, 5.400%, 11/01/20  –  NPFG Insured   No Opt. Call AA- $1,127,795
2,105   Sacramento City Financing Authority, California, Lease Revenue Refunding Bonds, Series 1993B, 5.400%, 11/01/20   No Opt. Call A+ 2,256,665
2,155   San Bernardino Joint Powers Financing Authority, California, Certificates of Participation Refunding, Police Station Financing Project, Series 1999, 5.500%, 9/01/20  –  NPFG Insured   9/17 at 100.00 AA- 2,155,194
215   San Clemente, California, Special Tax Revenue Bonds, Community Facilities District 2006-1 Marblehead Coastal, Series 2015, 5.000%, 9/01/40   9/25 at 100.00 N/R 234,864
1,000   San Diego County Regional Transportation Commission, California, Sales Tax Revenue Bonds, Refunding Series 2012A, 5.000%, 4/01/42   4/22 at 100.00 AAA 1,142,000
1,480   San Diego Redevelopment Agency, California, Subordinate Lien Tax Increment and Parking Revenue Bonds, Centre City Project, Series 2003B, 5.250%, 9/01/26   8/17 at 100.00 AAA 1,485,150
690   San Francisco City and County Redevelopment Agency Successor Agency, California, Special Tax Bonds, Community Facilities District 7, Hunters Point Shipyard Phase One Improvements, Refunding Series 2014, 5.000%, 8/01/39   8/24 at 100.00 N/R 748,691
2,700   San Francisco City and County Redevelopment Financing Authority, California, Tax Allocation Revenue Bonds, San Francisco Redevelopment Projects, Series 1998D, 0.000%, 8/01/24  –  NPFG Insured   No Opt. Call AA- 2,324,700
2,000   San Francisco City and County, California, Certificates of Participation, Multiple Capital Improvement Projects, Series 2009A, 5.200%, 4/01/26   4/19 at 100.00 AA 2,148,820
380   San Francisco, California, Community Facilities District 6, Mission Bay South Public Improvements, Special Tax Refunding Bonds, Series 2013A, 5.000%, 8/01/33   8/22 at 100.00 N/R 411,095
5,150   San Jacinto Unified School District, Riverside County, California, Certificates of Participation, Series 2010, 5.375%, 9/01/40  –  AGC Insured   9/20 at 100.00 AA 5,692,347
4,000   San Jose Financing Authority, California, Lease Revenue Refunding Bonds, Convention Center Project, Series 2001F, 5.000%, 9/01/19  –  NPFG Insured   8/17 at 100.00 AA 4,014,040
360   San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment Project, Refunding Series 2006D, 5.000%, 8/01/23  –  AMBAC Insured   8/17 at 100.00 A+ 362,434
    San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment Project, Series 2005A:        
3,310   5.000%, 8/01/20  –  NPFG Insured   8/17 at 100.00 AA- 3,321,022
5,025   5.000%, 8/01/28  –  NPFG Insured   8/17 at 100.00 AA- 5,041,532
    San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment Project, Series 2006C:        
100   5.000%, 8/01/24  –  NPFG Insured   8/17 at 100.00 AA- 100,680
1,110   5.000%, 8/01/25  –  NPFG Insured   8/17 at 100.00 AA- 1,117,504
1,000   San Marcos Public Facilities Authority, California, Special Tax Revenue Bonds, Refunding Series 2012D, 5.000%, 9/01/36   9/22 at 100.00 N/R 1,071,320
50   Signal Hill Redevelopment Agency, California, Project 1 Tax Allocation Bonds, Series 2011, 7.000%, 10/01/26   4/21 at 100.00 N/R 57,482
    Temecula Public Financing Authority, California, Special Tax Bonds, Community Facilities District 16-01, Series 2017, 144A:        
2,170   6.125%, 9/01/37   9/27 at 100.00 N/R 2,257,126
1,000   6.250%, 9/01/47   9/27 at 100.00 N/R 1,038,050
2,160   Temecula Redevelopment Agency, California, Tax Allocation Revenue Bonds, Redevelopment Project 1, Series 2002, 5.125%, 8/01/27  –  NPFG Insured   8/17 at 100.00 AA- 2,190,175

Principal Amount (000)   Description (1)   Optional Call Provisions (2) Ratings (3) Value
    Tax Obligation/Limited (continued)        
$ 4,500   Virgin Islands Public Finance Authority, Gross Receipts Taxes Loan Note, Refunding Series 2012A, 144A, 5.000%, 10/01/32  –  AGM Insured   10/22 at 100.00 AA $4,769,415
1,020   Washington Unified School District, Yolo County, California, Certificates of Participation, Series 2007, 5.125%, 8/01/37  –  AMBAC Insured   8/17 at 100.00 A 1,026,018
    West Patterson Financing Authority, California, Special Tax Bonds, Community Facilities District 2015-1 Arambel-KDN, Refunding Series 2015:        
350   5.250%, 9/01/35   9/25 at 100.00 N/R 361,480
790   5.250%, 9/01/45   9/25 at 100.00 N/R 806,906
4,235   West Sacramento Financing Authority, California, Special Tax Revenue Bonds, Series 2014, 5.500%, 9/01/31   9/22 at 102.00 N/R 4,751,839
95   Yorba Linda Redevelopment Agency, Orange County, California, Tax Allocation Revenue Bonds, Yorba Linda Redevelopment Project, Subordinate Lien Series 2011A, 6.000%, 9/01/26   9/21 at 100.00 A- 111,378
269,014   Total Tax Obligation/Limited       280,537,882
    Transportation – 8.1% (5.2% of Total Investments)        
9,005   Alameda Corridor Transportation Authority, California, Revenue Bonds, Refunding Second Subordinate Lien Series 2016B, 5.000%, 10/01/36   10/26 at 100.00 BBB+ 10,287,942
1,115   Bay Area Toll Authority, California, Revenue Bonds, San Francisco Bay Area Toll Bridge, Series 2013S-4, 5.250%, 4/01/48   4/23 at 100.00 AA- 1,287,635
6,750   Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Bonds, Refunding Junior Lien Series 2013C, 6.500%, 1/15/43   1/24 at 100.00 BB+ 8,111,880
    Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Bonds, Refunding Series 2013A:        
14,885   5.750%, 1/15/46   1/24 at 100.00 BBB- 17,188,156
14,885   6.000%, 1/15/53   1/24 at 100.00 BBB- 17,179,076
    Los Angeles Department of Airports, California, Revenue Bonds, Los Angeles International Airport, Senior Lien Series 2015E:        
150   5.000%, 5/15/31   5/25 at 100.00 AA 178,569
1,270   5.000%, 5/15/34   5/25 at 100.00 AA 1,491,755
1,345   5.000%, 5/15/36   5/25 at 100.00 AA 1,573,516
3,500   Stockton Public Financing Authority, California, Lease Revenue Bonds, Parking & Capital Projects, Series 2004, 5.250%, 9/01/34  –  FGIC Insured   8/17 at 100.00 AA- 3,500,210
52,905   Total Transportation       60,798,739
    U.S. Guaranteed – 19.8% (12.8% of Total Investments) (6)        
3,535   Antelope Valley Healthcare District, California, Revenue Bonds, Series 2011A, 6.875%, 3/01/26 (Pre-refunded 3/01/21)   3/21 at 100.00 N/R (6) 4,083,243
220   Bay Area Toll Authority, California, Revenue Bonds, San Francisco Bay Area Toll Bridge, Tender Option Bond Trust 3211, 12.112%, 4/01/39 (Pre-refunded 4/01/18) (IF)   4/18 at 100.00 AA (6) 263,177
2,250   California Infrastructure and Economic Development Bank, First Lien Revenue Bonds, San Francisco Bay Area Toll Bridge, Series 2003A, 5.000%, 7/01/36  –  AMBAC Insured (Pre-refunded 1/01/28)   1/28 at 100.00 Aaa 2,908,328
3,000   California Infrastructure and Economic Development Bank, First Lien Revenue Bonds, San Francisco Bay Area Toll Bridge, Series 2003A , 5.000%, 7/01/22  –  AGM Insured (ETM)   No Opt. Call Aaa 3,561,390

Principal Amount (000)   Description (1)   Optional Call Provisions (2) Ratings (3) Value
    U.S. Guaranteed (6) (continued)        
$ 1,112   California State Public Works Board, Lease Revenue Bonds, University of California Regents, Tender Option Bond Trust 2016-XG0003, 8.431%, 3/01/33 (Pre-refunded 3/01/18) (IF) (7)   3/18 at 100.00 Aaa $1,181,789
5,000   California State Public Works Board, Lease Revenue Bonds, Various Capital Projects, Series 2009G-1, 5.750%, 10/01/30 (Pre-refunded 10/01/19)   10/19 at 100.00 A+ (6) 5,561,050
2,000   California State Public Works Board, Lease Revenue Bonds, Various Capital Projects, Series 2009-I, 6.375%, 11/01/34 (Pre-refunded 11/01/19)   11/19 at 100.00 Aaa 2,261,840
4,920   California Statewide Communities Development Authority, Revenue Bonds, Saint Joseph Health System, Tender Option Bond Trust 2016-XG0041, 16.912%, 7/01/47  –  AGM Insured (Pre-refunded 7/01/18) (IF)   7/18 at 100.00 AA (6) 5,853,221
1,815   California Statewide Communities Development Authority, Revenue Bonds, ValleyCare Health System, Series 2007A, 5.125%, 7/15/31 (Pre-refunded 7/15/17)   7/17 at 100.00 AA+ (6) 1,824,456
2,680   California Statewide Community Development Authority, Revenue Bonds, Methodist Hospital Project, Series 2009, 6.750%, 2/01/38 (Pre-refunded 8/01/19)   8/19 at 100.00 N/R (6) 3,013,955
7,555   California Statewide Community Development Authority, Revenue Bonds, St. Joseph Health System, Series 2007A, 5.750%, 7/01/47  –  FGIC Insured (Pre-refunded 7/01/18)   7/18 at 100.00 AA- (6) 7,954,131
285   Central Unified School District, Fresno County, California, General Obligation Bonds, Series 1993, 5.625%, 3/01/18  –  AMBAC Insured (ETM)   9/17 at 100.00 N/R (6) 288,366
12,050   Coast Community College District, Orange County, California, General Obligation Bonds, Series 2006C, 5.000%, 8/01/31  –  AGM Insured (Pre-refunded 8/01/18)   8/18 at 100.00 AA+ (6) 12,649,608
2,500   Corona-Norco Unified School District, Riverside County, California, General Obligation Bonds, Election 2006 Series 2009B, 5.375%, 2/01/34  –  AGC Insured (Pre-refunded 8/01/18)   8/18 at 100.00 AA (6) 2,635,275
    East Side Union High School District, Santa Clara County, California, General Obligation Bonds, 2008 Election Series 2010B:        
3,490   5.000%, 8/01/27  –  AGC Insured (Pre-refunded 8/01/19)   8/19 at 100.00 AA (6) 3,798,935
3,545   5.000%, 8/01/28  –  AGC Insured (Pre-refunded 8/01/19)   8/19 at 100.00 AA (6) 3,858,803
3,110   5.000%, 8/01/29  –  AGC Insured (Pre-refunded 8/01/19)   8/19 at 100.00 AA (6) 3,385,297
7,100   Fontana Unified School District, San Bernardino County, California, General Obligation Bonds, Tender Option Bond Trust 2015-XF0111, 9.034%, 8/01/28  –  AGM Insured (Pre-refunded 8/01/18) (IF)   8/18 at 100.00 AA (6) 7,849,476
6,000   Huntington Park Redevelopment Agency, California, Single Family Residential Mortgage Revenue Refunding Bonds, Series 1986A, 8.000%, 12/01/19 (ETM)   No Opt. Call Aaa 7,046,940
    Irvine Unified School District Financing Authority, Orange County, California, Special Tax Bonds, Group II, Series 2006A:        
45   5.000%, 9/01/26 (Pre-refunded 9/01/17)   9/17 at 100.00 N/R (6) 47,334
105   5.125%, 9/01/36 (Pre-refunded 9/01/17)   9/17 at 100.00 N/R (6) 110,608
760   Loma Linda, California, Hospital Revenue Bonds, Loma Linda University Medical Center, Series 2008A, 8.250%, 12/01/38 (Pre-refunded 12/01/17)   12/17 at 100.00 BB (6) 787,983
3,000   Murrieta Valley Unified School District, Riverside County, California, General Obligation Bonds, Series 2007, 4.500%, 9/01/30  –  AGM Insured (Pre-refunded 9/01/17)   9/17 at 100.00 AA (6) 3,027,870
    Palomar Pomerado Health Care District, California, Certificates of Participation, Series 2009:        
9,250   6.625%, 11/01/29 (Pre-refunded 11/01/19)   11/19 at 100.00 Ba1 (6) 10,515,030
7,500   6.750%, 11/01/39 (Pre-refunded 11/01/19)   11/19 at 100.00 Ba1 (6) 8,547,075

Principal Amount (000)   Description (1)   Optional Call Provisions (2) Ratings (3) Value
    U.S. Guaranteed (6) (continued)        
$ 540   Pittsburg Redevelopment Agency, California, Tax Allocation Bonds, Los Medanos Community Development Project, Refunding Series 2008A, 6.500%, 9/01/28 (Pre-refunded 9/01/18)   9/18 at 100.00 N/R (6) $578,551
210   Rancho Santa Fe CSD Financing Authority, California, Revenue Bonds, Superior Lien Series 2011A, 5.750%, 9/01/30 (Pre-refunded 9/01/21)   9/21 at 100.00 A- (6) 250,494
9,000   San Diego County Water Authority, California, Water Revenue Certificates of Participation, Series 2008A, 5.000%, 5/01/38  –  AGM Insured (Pre-refunded 5/01/18)   5/18 at 100.00 AAA 9,348,930
30   San Francisco Redevelopment Finance Authority, California, Tax Allocation Revenue Bonds, Mission Bay North Redevelopment Project, Series 2011C, 6.750%, 8/01/41 (Pre-refunded 2/01/21)   2/21 at 100.00 A- (6) 36,192
    San Francisco Redevelopment Financing Authority, California, Tax Allocation Revenue Bonds, Mission Bay South Redevelopment Project, Series 2011D:        
30   7.000%, 8/01/33 (Pre-refunded 2/01/21)   2/21 at 100.00 BBB+ (6) 36,449
40   7.000%, 8/01/41 (Pre-refunded 2/01/21)   2/21 at 100.00 BBB+ (6) 48,599
1,500   San Juan Capistano, California, General Obligation Bonds, Open Space Program, Tender Option Bond Trust 2015-XF0048, 15.510%, 8/01/40 (Pre-refunded 8/01/19) (IF)   8/19 at 100.00 AAA 2,029,740
325   San Mateo Union High School District, San Mateo County, California, Certificates of Participation, Phase 1, Series 2007A, 5.000%, 12/15/30  –  AMBAC Insured (Pre-refunded 12/15/17)   12/17 at 100.00 N/R (6) 332,436
    San Ysidro School District, San Diego County, California, General Obligation Bonds, 1997 Election Series 2011F:        
7,230   0.000%, 8/01/42  –  AGM Insured (Pre-refunded 8/01/21)   8/21 at 21.00 AA (6) 1,441,734
10,740   0.000%, 8/01/43  –  AGM Insured (Pre-refunded 8/01/21)   8/21 at 19.43 AA (6) 1,982,174
21,225   0.000%, 8/01/44  –  AGM Insured (Pre-refunded 8/01/21)   8/21 at 17.98 AA (6) 3,624,806
12,550   0.000%, 8/01/45  –  AGM Insured (Pre-refunded 8/01/21)   8/21 at 16.64 AA (6) 1,983,026
23,425   0.000%, 8/01/46  –  AGM Insured (Pre-refunded 8/01/21)   8/21 at 15.39 AA (6) 3,423,798
9,085   Santa Clara County Financing Authority, California, Insured Revenue Bonds, El Camino Hospital, Series 2007A, 5.750%, 2/01/41  –  AMBAC Insured (Pre-refunded 8/01/17)   8/17 at 100.00 A+ (6) 9,160,587
    Tustin Community Redevelopment Agency, California, Tax Allocation Housing Bonds Series 2010:        
1,205   5.000%, 9/01/30  –  AGM Insured (Pre-refunded 9/01/20)   9/20 at 100.00 AA (6) 1,359,975
3,250   5.250%, 9/01/39  –  AGM Insured (Pre-refunded 9/01/20)   9/20 at 100.00 AA (6) 3,693,918
6,000   Westminster Redevelopment Agency, California, Tax Allocation Bonds, Commercial Redevelopment Project 1, Police Facility Subordinate Series 2009, 6.250%, 11/01/39 (Pre-refunded 11/01/19)   11/19 at 100.00 A2 (6) 6,766,080
199,212   Total U.S. Guaranteed       149,112,669
    Utilities – 4.3% (2.7% of Total Investments)        
    Long Beach Bond Finance Authority, California, Natural Gas Purchase Revenue Bonds, Series 2007A:        
2,490   5.000%, 11/15/35   No Opt. Call A 3,021,266
1,835   5.500%, 11/15/37   No Opt. Call A 2,377,353
10,000   Los Angeles Department of Water and Power, California, Power System Revenue Bonds, Series 2012B, 5.000%, 7/01/43   7/22 at 100.00 Aa2 11,339,600
4,280   Los Angeles Department of Water and Power, California, Power System Revenue Bonds, Series 2013B, 5.000%, 7/01/28   7/23 at 100.00 Aa2 5,123,032

Principal Amount (000)   Description (1)   Optional Call Provisions (2) Ratings (3) Value
    Utilities (continued)        
$ 3,750   Los Angeles Department of Water and Power, California, Power System Revenue Bonds, Tender Option Bond Trust 2015-XF2047, 15.809%, 7/01/43 (IF) (7)   7/22 at 100.00 Aa2 $5,759,400
1,000   Southern California Public Power Authority, California, Milford Wind Corridor Phase I Revenue Bonds, Series 2010-1, 5.000%, 7/01/28   1/20 at 100.00 AA- 1,098,520
2,975   Southern California Public Power Authority, California, Revenue Bonds, Apex Power Project Series 2014A, 5.000%, 7/01/37   7/24 at 100.00 AA- 3,471,825
26,330   Total Utilities       32,190,996
    Water and Sewer – 18.4% (11.9% of Total Investments)        
13,200   Atwater Public Financing Authority, California, Wastewater Revenue Bonds, Series 2010, 5.125%, 5/01/40  –  AGM Insured   5/19 at 100.00 AA 13,709,520
11,600   Bay Area Water Supply and Conservation Agency, California, Revenue Bonds, Capital Cost Recovery Prepayment Program, Series 2013A, 5.000%, 10/01/34   4/23 at 100.00 AA- 13,361,808
    California Pollution Control Financing Authority, Water Furnishing Revenue Bonds, San Diego County Water Authority Desalination Project Pipeline, Series 2012, 144A:        
8,000   5.000%, 7/01/37   7/17 at 100.00 Baa3 8,015,360
12,200   5.000%, 11/21/45   7/17 at 100.00 Baa3 12,223,424
3,000   Escondido Joint Powers Financing Authority, California, Revenue Bonds, Water System Financing, Series 2012, 5.000%, 9/01/41   3/22 at 100.00 AA- 3,412,650
2,250   Fortuna Public Finance Authority, California, Water Revenue Bonds, Series 2006, 5.000%, 10/01/36  –  AGM Insured   8/17 at 100.00 AA 2,257,358
    Los Angeles Department of Water and Power, California, Waterworks Revenue Bonds, Refunding Series 2016B:        
1,000   5.000%, 7/01/32   1/26 at 100.00 AA+ 1,198,010
3,775   5.000%, 7/01/35   1/26 at 100.00 AA+ 4,464,693
16,000   Los Angeles Department of Water and Power, California, Waterworks Revenue Bonds, Series 2012A, 5.000%, 7/01/43   7/22 at 100.00 AA+ 18,102,240
10,515   Los Angeles Department of Water and Power, California, Waterworks Revenue Bonds, Series 2014A, 5.000%, 7/01/44   7/24 at 100.00 AA+ 12,159,861
    Los Angeles Department of Water and Power, California, Waterworks Revenue Bonds, Series 2016A:        
5,680   5.000%, 7/01/35   1/26 at 100.00 AA+ 6,717,736
1,000   5.000%, 7/01/36   1/26 at 100.00 AA+ 1,179,330
    Los Angeles Department of Water and Power, California, Waterworks Revenue Bonds, Series 2017A:        
5,000   5.000%, 7/01/44   1/27 at 100.00 AA+ 5,914,250
5,000   5.250%, 7/01/44   1/27 at 100.00 AA+ 6,074,850
2,210   Los Angeles, California, Wastewater System Revenue Bonds, Green Bonds, Subordinate Lien Series 2017A, 5.250%, 6/01/47   6/27 at 100.00 AA 2,696,664
9,500   Los Angeles, California, Wastewater System Revenue Bonds, Refunding Green Series 2015A, 5.000%, 6/01/44   6/25 at 100.00 AA+ 11,077,570
    Los Angeles, California, Wastewater System Revenue Bonds, Refunding Subordinate Lien Series 2013A:        
2,000   5.000%, 6/01/34   6/23 at 100.00 AA 2,326,600
3,500   5.000%, 6/01/35   6/23 at 100.00 AA 4,060,840

Principal Amount (000)   Description (1)   Optional Call Provisions (2) Ratings (3) Value
    Water and Sewer (continued)        
$ 670   Metropolitan Water District of Southern California, Waterworks Revenue Bonds, Tender Option Bond Trust 2016-XL0015, 15.930%, 7/01/35 (IF) (7)   7/19 at 100.00 AAA $889,036
1,500   Placerville Public Financing Authority, California, Wastewater System Refinancing and Improvement Project Revenue Bonds, Series 2006, 5.000%, 9/01/34  –  SYNCORA GTY Insured   8/17 at 100.00 N/R 1,503,960
2,500   Sacramento County Sanitation Districts Financing Authority, California, Revenue Bonds, Sacramento Regional County Sanitation District, Series 2014A, 5.000%, 12/01/33   6/24 at 100.00 AA 2,948,300
4,000   San Diego Public Facilities Financing Authority, California, Water Utility Revenue Bonds, Refunding Subordinate Lien Series 2016B, 5.000%, 8/01/37   8/26 at 100.00 Aa3 4,746,080
124,100   Total Water and Sewer       139,040,140
$ 1,180,551   Total Long-Term Investments (cost $1,045,709,003)       1,168,431,710
    Institutional MuniFund Term Preferred, net of deferred offering costs – (4.7)% (8)       (35,821,127)
    Variable Rate Demand Preferred Shares, net of deferred offering costs – (52.2)% (9)       (394,050,790)
    Other Assets Less Liabilities – 2.0%       15,660,715
    Net Asset Applicable to Common Shares – 100%       $ 754,220,508
Fair Value Measurements
Fair value is defined as the price that would be received upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. A three-tier hierarchy is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The following is a summary of the three-tiered hierarchy of valuation input levels.
Level 1  – Inputs are unadjusted and prices are determined using quoted prices in active markets for identical securities.
Level 2  – Prices are determined using other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3  – Prices are determined using significant unobservable inputs (including management’s assumptions in determining the fair value of investments).
The inputs or methodologies used for valuing securities are not an indication of the risks associated with investing in those securities. The following is a summary of the Fund’s fair value measurements as of the end of the reporting period:
  Level 1 Level 2 Level 3 Total
Long-Term Investments:        
Municipal Bonds $ — $1,168,431,710 $ — $1,168,431,710
Income Tax Information
The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to timing differences in recognizing taxable market discount, timing differences in recognizing certain gains and losses on investment transactions and the treatment of investments in inverse floating rate securities reflected as financing transactions, if any. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts on the Statement of Assets and Liabilities presented in the annual report, based on their federal tax basis treatment; temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset value of the Fund.
As of May 31, 2017, the cost of investments was $1,044,540,652.

Gross unrealized appreciation and gross unrealized depreciation of investments as of May 31, 2017, were as follows:
Gross unrealized:  
Appreciation $124,446,743
Depreciation (555,685)
Net unrealized appreciation (depreciation) of investments $123,891,058
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to common shares unless otherwise noted.  
(2) Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns.  
(3) For financial reporting purposes, the ratings disclosed are the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment policies. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies.  
(4) The coupon for this security increased 0.25% effective January 1, 2016 and increased an additional 0.25% effective May 11, 2016.  
(5) Step-up coupon. The rate shown is the coupon as of the end of the reporting period.  
(6) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities.  
(7) Investment, or portion of investment, has been pledged to collateralize the net payment obligations for investments in inverse floating rate transactions.  
(8) Institutional MuniFund Term Preferred Shares, net of deferred offering costs as a percentage of Total Investments is 3.1%  
(9) Variable Rate Demand Preferred Shares, net of deferred offering costs as a percentage of Total Investments is 33.7%.  
(ETM) Escrowed to maturity.  
(IF) Inverse floating rate investment.  
144A Investment is exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These investments may only be resold in transactions exempt from registration, which are normally those transactions with qualified institutional buyers.  
(WI/DD) Investment, or portion of investment, purchased on a when-issued or delayed delivery basis.  

Item 2. 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 Rule 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934 (17 CFR 240.13a-15(b) or 240.15d-15(b)).

 

  b. There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3. Exhibits.

File as exhibits as part of this Form 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)), exactly as set forth below: See EX-99 CERT attached hereto.

 

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

(Registrant)    Nuveen California AMT-Free Quality Municipal Income Fund
By (Signature and Title)    /s/ Gifford R. Zimmerman                                                       
   Gifford R. Zimmerman   
   Vice President and Secretary   

Date: July 28, 2017

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/ Cedric H. Antosiewicz                                                        
   Cedric H. Antosiewicz   
   Chief Administrative Officer (principal executive officer)   
Date: July 28, 2017      
By (Signature and Title)    /s/ Stephen D. Foy                                                                    
   Stephen D. Foy   
   Vice President and Controller (principal financial officer)   
Date: July 28, 2017