UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-21212 --------------------- Nuveen Insured California Tax-Free 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, 2006 ------------------ 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, 2006 Nuveen Investments Municipal Exchange-Traded Closed-End 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 Photo of: Man, woman and child at the beach. Photo of: A child. DEPENDABLE, TAX-FREE INCOME BECAUSE IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R) Logo: NUVEEN Investments Photo of: Woman Photo of: Man and child Photo of: Woman NOW YOU CAN RECEIVE YOUR NUVEEN FUND REPORTS FASTER. NO MORE WAITING. SIGN UP TODAY TO RECEIVE NUVEEN FUND INFORMATION BY E-MAIL. It only takes a minute to sign up for E-Reports. Once enrolled, you'll receive an e-mail as soon as your Nuveen Investments Fund information is ready -- no more waiting for delivery by regular mail. Just click on the link within the e-mail to see the report, and save it on your computer if you wish. -------------------- DELIVERY DIRECT TO YOUR E-MAIL INBOX -------------------- IT'S FAST, EASY & FREE: WWW.INVESTORDELIVERY.COM if you get your Nuveen Fund dividends and statements from your financial advisor or brokerage account. OR WWW.NUVEEN.COM/ACCOUNTACCESS if you get your Nuveen Fund dividends and statements directly from Nuveen. (Be sure to have the address sheet that accompanied this report handy. You'll need it to complete the enrollment process.) Logo: NUVEEN Investments Photo of: Timothy R. Schwertfeger Timothy R. Schwertfeger Chairman of the Board Chairman's LETTER TO SHAREHOLDERS Once again, I am pleased to report that over the six month period covered by this report your Fund continued to provide you with attractive monthly tax-free income. For more details about the management strategy and performance of your Fund, please read the Portfolio Manager's Comments, the Distribution and Share Price Information, and the Performance Overview sections of this report. Municipal bonds can be an important building block in a well balanced investment portfolio. In addition to providing attractive tax-free monthly income, a municipal "PORTFOLIO DIVERSIFICATION IS A RECOGNIZED WAY TO TRY TO REDUCE SOME OF THE RISK THAT COMES WITH INVESTING." bond investment like your Fund may help you achieve and benefit from greater portfolio diversification. Portfolio diversification is a recognized way to try to reduce some of the risk that comes with investing. I encourage you to contact your personal financial advisor who can help explain this important investment strategy. Nuveen Investments is pleased to offer you choices when it comes to receiving your fund reports. In addition to mailed print copies, you can also sign up to receive 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. The inside front cover of this report contains information on how you can sign up. 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. 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. Sincerely, /s/ Timothy R. Schwertfeger Timothy R. Schwertfeger Chairman of the Board April 3, 2006 Nuveen California Municipal Exchange-Traded Closed-End Funds (NPC, NCL, NCU, NAC, NVX, NZH, NKL, NKX) Portfolio Manager's COMMENTS Portfolio manager Scott Romans reviews key investment strategies and the semiannual performance of these eight California Funds. Scott, who joined Nuveen in 2000, has managed NCU, NAC, NVX, NZH, NKL, and NKX since 2003. He assumed portfolio management responsibility for NPC and NCL in May 2005. WHAT KEY STRATEGIES WERE USED TO MANAGE THE CALIFORNIA FUNDS DURING THE SIX MONTHS ENDED FEBRUARY 28, 2006? During this reporting period, we saw a general increase in interest rates across the yield curve, with short-term rates rising faster than longer-term rates. Between September 1, 2005, and February 28, 2006, the Federal Reserve implemented four increases of 0.25% each in the fed funds rate, raising this short-term target by 100 basis points. In contrast, the yield on the benchmark 10-year U.S. Treasury note ended February 2006 at 4.55%, up from 4.02% six months earlier, while the yield on the Bond Buyer 25 Revenue Bond Index, a widely followed measure of longer-term municipal market rates, was 5.04% at the end of February 2006, an increase of 17 basis points from the end of August 2005. As interest rates increased, bond valuations generally declined, and the yield curve flattened as shorter-term rates approached the levels of longer-term rates. In this environment, one of our key strategies continued to be careful duration1 management. As the yield curve flattened, we continued to see a substantial number of advance refundings2 in the California market. While these refundings benefited the Funds' performance to a certain extent during this period, they also had a shortening effect on the Funds' durations. To help us maintain these durations within our preferred strategic range, our purchase activity focused mainly on attractively priced bonds with longer durations, that is, bonds maturing in 25 to 30 years. In the current rate environment, we believe that bonds in this part of the yield curve generally offer more attractive opportunities and the best values. In looking for potential purchase candidates, we kept an opportunistic eye toward all types of issuance that we believed could add value to the Funds' portfolios, balancing the goal of performance potential with the need to support the Funds' income streams. Overall, portfolio activity was relatively light, due in part to the decline in California municipal supply during this six-month period. This was especially true during the first 1 Duration is a measure of a bond's price sensitivity as interest rates change, with longer duration bonds displaying more sensitivity to these changes than bonds with shorter durations. 2 Advance refundings, also known as pre-refundings or refinancings, occur when an issuer sells new bonds and uses the proceeds to fund principal and interest payments of older existing bonds. This process often results in lower net borrowing costs for bond issuers. 4 two months of 2006, when new issuance in the state dropped 27% from levels seen in early 2005. While we continued to emphasize maintaining weightings of bonds rated BBB or lower and nonrated bonds in the four noninsured Funds and NKL and NKX (which can invest up to 20% of their assets in uninsured investment-grade quality securities), tighter supply meant fewer opportunities to find lower-rated issues that we believed represented value for shareholders. Therefore, the majority of our new purchases for these six Funds were higher-rated credits, while NPC and NCL continued to invest in insured and/or U.S. guaranteed securities. One area where we did find opportunities to purchase lower-rated bonds was the tobacco sector. In NCU, NAC, NVX, and NZH, we replaced some pre-refunded issues with BBB rated tobacco bonds issued by Sonoma County. This helped us maintain the tobacco allocations of these four Funds at preferred levels. Although the Sonoma County tobacco bonds had lower coupons and shorter maturities than we had strategically targeted for these Funds during this period, we believed that this was offset by the attractive structures and return potential offered by these credits. In NKL and NKX, our duration management strategies also included the use of forward interest rate swaps, a type of derivative financial instrument. As discussed in our last shareholder report, we began using these swaps in late 2004 in an effort to reduce the interest rate risk of these two Funds. These hedges were not an attempt to profit from correctly predicting the timing and direction of interest rate movements. Instead, our sole objective was to reduce the Funds' durations (and resulting pricing sensitivity) without having a negative impact on their income streams or common share dividends over the short term. During this reporting period, the hedges performed as expected and had a positive impact on the performances of NKL and NKX. As long-term interest rates rose, the value of the hedges increased while the valuation of the Funds' holdings generally declined. We believe this hedging strategy was effective in achieving the intended goal of helping to reduce the net asset value (NAV) volatility of these Funds, and in February 2006, we removed the hedges. 5 As part of our duration management strategies during this period, we were also selectively selling holdings with shorter durations, including bonds with very short maturities, bonds priced to short calls, and pre-refunded bonds. The proceeds from these sales, as well as proceeds from any calls, were then generally reinvested in the 25- to 30-year part of the yield curve as attractive opportunities arose. HOW DID THE FUNDS PERFORM? Individual results for these California Funds, as well as for relevant indexes and peer groups, are presented in the accompanying table. TOTAL RETURNS ON NET ASSET VALUE* For periods ended 2/28/06 NONINSURED FUNDS 6-MONTH 1-YEAR 5-YEAR 10-YEAR -------------------------------------------------------------------------------- NCU 0.81% 5.23% 7.62% 7.10% -------------------------------------------------------------------------------- NAC 1.46% 5.98% 8.14% NA -------------------------------------------------------------------------------- NVX 1.43% 6.65% NA NA -------------------------------------------------------------------------------- NZH 1.58% 6.96% NA NA -------------------------------------------------------------------------------- Lehman Brothers CA Tax-Exempt Bond Index3 1.16% 4.37% 5.58% 5.92% -------------------------------------------------------------------------------- Lipper CA Municipal Debt Funds Average4 1.63% 6.49% 6.94% 6.43% -------------------------------------------------------------------------------- INSURED FUNDS -------------------------------------------------------------------------------- NPC 0.49% 4.32% 6.62% 6.27% -------------------------------------------------------------------------------- NCL 0.87% 4.75% 6.67% 6.69% -------------------------------------------------------------------------------- NKL 1.46% 5.98% NA NA -------------------------------------------------------------------------------- NKX 1.49% 6.02% NA NA -------------------------------------------------------------------------------- Lehman Brothers Insured CA Tax-Exempt Bond Index3 1.31% 4.29% 5.57% 5.99% -------------------------------------------------------------------------------- Lipper Insured CA Municipal Debt Funds Average5 1.46% 5.69% 6.00% 6.12% -------------------------------------------------------------------------------- *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 than the data shown. Returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares. For additional information, see the individual Performance Overview for your Fund in this report. 3 The Lehman Brothers California Tax-Exempt Bond Index is an unleveraged, unmanaged index comprising a broad range of investment-grade California municipal bonds, while 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. 4 The Lipper California Municipal Debt Funds average is calculated using the returns of all closed-end exchange-traded funds in this category for each period as follows: 6 months, 26; 1 year, 26; 5 years, 15; and 10 years, 13. Fund and Lipper returns assume reinvestment of dividends. 5 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; 1 year, 13; 5 years, 8; and 10 years, 6. Fund and Lipper returns assume reinvestment of dividends. 6 For the six months ended February 28, 2006, the cumulative returns on NAV for NAC, NVX, and NZH exceeded the return on their Lehman Brothers California municipal benchmark, while NCU trailed this measure. NZH performed relatively in line with the average return for the Lipper California peer group, while the other three noninsured Funds underperformed this average. Among the insured Funds, the returns on NAV for NKL and NKX outperformed the return on the Lehman Brothers Insured California Tax-Exempt Bond Index, while NPC and NCL lagged the index return for the six month reporting period. NKL and NKX also performed in line with the average return for the Lipper Insured California peer group, while NPC and NCL trailed the group average. During this reporting period, positive contributors to the Funds' returns included allocations to lower-rated credits (in the four noninsured Funds, as well as NKL, and NKX), yield curve and duration positioning, and--to a more limited extent-- pre-refunding activity. As mentioned earlier, the hedging strategies we employed in NKL and NKX also had a positive impact on the performance of these two Funds for the period. With bonds rated BBB or lower and nonrated generally outperforming other credit quality sectors during this period, allocations to these lower-quality credits were a major driver of performance among the six Funds that invest in noninsured bonds. At the same time, the performances of NPC and NCL were hampered by the fact that, as insured Funds, they could not hold any of these lower rated credits. The performance of the lower- credit quality issues during this period was largely the result of investor demand for the higher yields typically associated with these bonds, which drove up their value. As of February 28, 2006, bonds rated BBB or lower and nonrated bonds accounted for 16% to 17% of the portfolios of the noninsured Funds, while NKL and NKX each had an allocation of approximately 6% to bonds rated BBB. Among the lower-rated bonds making positive contributions to the Funds' cumulative returns for this period were healthcare (including hospitals and long-term care), housing, and tobacco credits. At period end, the six noninsured Funds held between 2% and 4% of their portfolios in unenhanced tobacco bonds. 7 As the yield curve continued to flatten over the course of this period, yield curve and duration positioning also played important roles in the Funds' performances. On the whole, bonds priced to intermediate calls (i.e., between 2009 and 2012, the part of the curve that experienced the greatest rate changes) were the most impacted by the changes in the yield curve. As a result, these bonds generally underperformed those priced to very short calls (i.e., 2006) and longer calls (i.e., 2014 and beyond). Yield curve positioning or, more specifically, greater exposure to those parts of the yield curve that performed well helped the performance of these Funds during this period. As mentioned earlier, we also continued to see a substantial number of refinancings during this period, which benefited the Funds through price appreciation and enhanced credit quality. The impact of a bond's price appreciation on the Fund's total return is determined by the structure of the bond being refinanced. For example, the advance refunding of a bond with a 7% coupon produces greater price appreciation, and therefore greater positive impact on total return, than the refunding of a 5% coupon bond. As the yield curve flattened, we saw more lower coupon bonds being pre-refunded, which meant that the positive impact of price appreciation from advance refundings was less than in the previous reporting period. In addition, the new bonds that were issued to replace those that were pre-refunded were now higher-quality securities with new maturities and call dates, some of which fell into that part of the yield curve that underperformed during this period. As a result, while the Funds benefited immediately from the initial price appreciation associated with advance refundings, some of their pre-refunded holdings subsequently did not perform well. Additionally, the rising interest rate environment of this six-month period generally meant that the Funds' holdings of older pre-refunded bonds tended to underperform the general municipal market, due primarily to the shorter effective maturities of these bonds. This was especially true in NPC, which held approximately 30% of its portfolio in older pre-refunded bonds as of February 28, 2006. In addition to the factors mentioned above, security-specific issues--including the timing, size, and degree of credit quality enhancement of advance refundings--also accounted for some of the performance differential among these Funds. For example, the difference in exposure to bonds that were newly advance refunded during this period (5.2% in NCL versus 1.5% in NPC) explained much of the difference in performance between these two Funds. 8 HOW WERE THE FUNDS POSITIONED IN TERMS OF CREDIT QUALITY AND BOND CALLS AS OF FEBRUARY 28, 2006? We continued to believe that maintaining strong credit quality was an important requirement. As of February 28, 2006, the four noninsured Funds continued to offer excellent credit quality, with allocations of bonds rated AAA/U.S. guaranteed and AA ranging from 70% in NCU and NZH and 70% in NAC to 73% 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 each allocated 84% of their portfolios to insured bonds. As of February 28, 2006, potential call exposure for the period March 2006 through the end of 2007 ranged from zero in NKL, 1% in NAC, 2% in NVX, 3% in NZH, and 4% in NKX to 10% in NCU, 12% in NPC, and 16% in NCL. We continued to work to manage the call structure of these Funds, especially older Funds such as NPC, NCL, and NCU. The number of actual bond calls in all of these Funds depends largely on future market interest rates. 9 Dividend and Share Price INFORMATION All of the Funds in this report use leverage to potentially enhance opportunities for additional income for common shareholders. The extent of this benefit is tied in part to the short-term rates these leveraged 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. However, when short-term interest rates rise, as they did during this reporting period, the Funds' borrowing costs also rise, impacting the Funds' expenses, income streams, and total returns. While leveraging still provided benefits for common shareholders, the extent of these benefits was reduced. The Funds' income streams were also impacted as the proceeds from older, higher-yielding bonds that matured or were called were reinvested into bonds generally offering lower yields. While the dividends of all eight Funds remained stable throughout the six-month reporting period ended February 28, 2006, NPC, NCL, NCU, NAC, NVX, and NZH announced monthly dividend reductions on March 1, 2006. Due to capital gains generated by normal portfolio activity, common shareholders of the following Funds received capital gains and/or net ordinary income distributions at the end of December 2005 as follows: LONG-TERM CAPITAL GAINS ORDINARY INCOME (PER SHARE) (PER SHARE) -------------------------------------------------------------------------------- NPC $0.1367 $0.0109 -------------------------------------------------------------------------------- NCU $0.0122 -- -------------------------------------------------------------------------------- NAC $0.0334 -- -------------------------------------------------------------------------------- All of the Funds in this report seek to pay stable dividends at rates that reflect each Fund's past results and projected future performance. During certain periods, each Fund may pay dividends at a rate that may be more or less than the amount of net investment income actually earned by the Fund during the period. If a Fund has cumulatively earned more than it has paid in dividends, it holds the excess in reserve as undistributed net investment income (UNII) as part of the Fund's NAV. Conversely, if a Fund has cumulatively paid dividends in excess of its earnings, the excess constitutes negative UNII that is likewise reflected in the Fund's NAV. Each Fund will, over time, pay all of its net investment income as dividends to shareholders. As of February 28, 2006, all of the Funds in this report, except NKX, had positive UNII balances for financial statement purposes and positive UNII balances, based on our best estimate, for tax purposes. NKX 10 had a negative UNII balance for financial statement purposes and a positive UNII balance, based on our best estimate, for tax 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: 2/28/06 6-MONTH AVERAGE PREMIUM/DISCOUNT PREMIUM/DISCOUNT -------------------------------------------------------------------------------- NPC +2.10% -2.25% -------------------------------------------------------------------------------- NCL +0.20% -3.03% -------------------------------------------------------------------------------- NCU -3.94% -4.59% -------------------------------------------------------------------------------- NAC +1.97% +0.21% -------------------------------------------------------------------------------- NVX -3.18% -4.72% -------------------------------------------------------------------------------- NZH -3.11% -5.32% -------------------------------------------------------------------------------- NKL -2.24% -3.88% -------------------------------------------------------------------------------- NKX -3.66% -5.01% -------------------------------------------------------------------------------- 11 Nuveen Insured California Premium Income Municipal Fund, Inc. NPC Performance OVERVIEW As of February 28, 2006 Pie Chart: CREDIT QUALITY (as a % of total investments) Insured 70% U.S. Guaranteed 30% Bar Chart: 2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Mar 0.074 Apr 0.074 May 0.074 Jun 0.074 Jul 0.074 Aug 0.074 Sep 0.0705 Oct 0.0705 Nov 0.0705 Dec 0.0705 Jan 0.0705 Feb 0.0705 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 3/01/05 16.41 16.32 16.26 16.24 16.24 16.04 15.77 15.65 15.35 15.16 14.99 14.97 15.01 15 15.01 15.01 15.13 15.23 15.1 15.14 15.1 15.19 15.16 15.3 15.18 15.2 15.08 15.01 15.09 15.1 14.95 14.95 14.99 14.98 14.97 15.07 15.05 15.06 15.08 15.08 15.05 15.12 15.17 15.17 15.17 15.3 15.32 15.43 15.35 15.25 15.43 15.44 15.35 15.49 15.39 15.33 15.35 15.42 15.45 15.59 16 15.78 15.75 15.9 15.63 15.67 15.8 15.94 15.93 15.89 15.94 15.82 15.79 15.84 15.9 15.9 15.73 15.79 15.79 15.7 15.68 15.72 15.62 15.63 15.6 15.66 15.7 15.7 15.69 15.64 15.71 15.72 15.79 15.79 15.79 15.91 15.94 15.96 16.1 16.12 15.86 15.93 16.04 16.04 16.04 16.04 16.39 16.39 16.45 16.25 16.59 16.8 16.5 16.47 16.28 16.1 16.06 16.31 16.19 16.14 15.93 15.86 15.89 15.89 15.96 15.87 15.86 15.88 15.96 15.81 15.9 15.91 16.08 16.14 16.21 16.21 16.35 16.2 16 16.14 16.04 16.04 15.87 15.82 15.76 15.71 15.71 15.65 15.64 15.64 15.6 15.67 15.7 15.61 15.61 15.61 15.53 15.62 15.54 15.55 15.4 15.29 15.45 15.46 15.46 15.3 15.45 15.42 15.15 15.08 14.94 14.99 15 15 15.03 14.89 15.01 14.83 14.97 14.9 14.93 14.93 14.93 14.85 14.98 14.95 15.07 15.09 15.23 15.12 15.12 15.02 15.04 14.95 14.89 14.9 14.78 14.86 14.97 14.87 14.8 14.8 14.52 14.39 14.42 14.43 14.4 14.66 14.52 14.54 14.56 14.74 14.74 14.84 14.95 14.95 15 15.15 15.36 15.44 15.45 15.44 15.41 15.46 15.51 15.75 15.7 15.76 15.75 15.87 15.7 15.47 15.38 15.4 15.29 15.34 15.5 15.73 15.89 15.88 15.88 15.87 15.8 15.8 16.1 16.1 16.25 16.2 16.05 15.68 16.08 15.59 15.72 15.9 2/28/06 16.04 FUND SNAPSHOT ------------------------------------ Common Share Price $16.04 ------------------------------------ Common Share Net Asset Value $15.71 ------------------------------------ Premium/(Discount) to NAV 2.10% ------------------------------------ Market Yield 5.27% ------------------------------------ Taxable-Equivalent Yield1 8.05% ------------------------------------ Net Assets Applicable to Common Shares ($000) $101,333 ------------------------------------ Average Effective Maturity on Securities (Years) 15.57 ------------------------------------ Leverage-Adjusted Duration 7.60 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 11/19/92) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 6-Month (Cumulative) 4.69% 0.49% ------------------------------------ 1-Year 4.02% 4.32% ------------------------------------ 5-Year 7.88% 6.62% ------------------------------------ 10-Year 7.84% 6.27% ------------------------------------ INDUSTRIES (as a % of total investments) ------------------------------------ U.S. Guaranteed 30.2% ------------------------------------ Tax Obligation/General 20.2% ------------------------------------ Tax Obligation/Limited 17.1% ------------------------------------ Water and Sewer 17.0% ------------------------------------ Education and Civic Organizations 7.4% ------------------------------------ Other 8.1% ------------------------------------ 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%. When comparing this Fund to 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 2005 of $0.1476 per share. 12 Nuveen Insured California Premium Income Municipal Fund 2, Inc. NCL Performance OVERVIEW As of February 28, 2006 Pie Chart: CREDIT QUALITY (as a % of total investments) Insured 78% U.S. Guaranteed 22% Bar Chart: 2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE Mar 0.073 Apr 0.073 May 0.073 Jun 0.069 Jul 0.069 Aug 0.069 Sep 0.066 Oct 0.066 Nov 0.066 Dec 0.066 Jan 0.066 Feb 0.066 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 3/01/05 14.89 14.9 14.96 15 15.05 14.92 14.9 14.79 14.67 14.68 14.72 14.68 14.7 14.63 14.58 14.64 14.65 14.55 14.4 14.33 14.25 14.42 14.45 14.53 14.58 14.56 14.54 14.51 14.61 14.55 14.5 14.53 14.63 14.57 14.55 14.5 14.5 14.55 14.62 14.57 14.6 14.87 14.99 14.99 15 15.08 15.08 15.04 15.02 15.05 15.22 15.29 15.35 15.33 15.34 15.38 15.37 15.29 15.31 15.38 15.38 15.35 15.45 15.5 15.34 15.3 15.3 15.2 15.25 15.21 15.15 15.05 15.01 14.87 14.89 14.76 14.73 14.65 14.6 14.57 14.66 14.76 14.77 14.78 14.83 14.87 14.86 14.86 14.9 14.94 14.97 14.85 14.85 14.96 14.86 14.9 15 14.91 14.78 14.88 14.8 14.8 14.95 14.86 14.95 15.15 15.1 15.1 14.96 15 15 15.08 15 15 15 15.03 14.85 14.85 14.85 14.84 14.87 14.89 14.95 14.9 14.87 14.96 14.96 14.94 14.94 15.07 15.05 15.13 15.21 15.32 15.25 15.29 15.2 15.2 15.18 15.08 15.15 15.18 15.08 14.91 14.96 14.99 14.98 15 14.89 15.09 15.03 15.15 15.1 15.11 15.17 15.15 14.97 15.05 14.9 14.82 14.78 14.65 14.65 14.62 14.7 14.67 14.8 14.79 14.61 14.8 14.55 14.49 14.5 14.46 14.4 14.3 14.45 14.45 14.43 14.4 14.19 14 13.99 13.86 13.9 13.87 13.86 13.82 13.84 13.78 13.78 13.85 13.78 13.74 13.85 13.98 13.89 13.9 13.92 13.87 13.8 13.76 13.73 13.69 13.62 13.67 13.68 13.72 13.76 13.78 13.8 13.89 13.92 13.99 14.2 14.2 14.48 14.39 14.44 14.44 14.46 14.44 14.4 14.5 14.45 14.38 14.4 14.54 14.54 14.53 14.54 14.47 14.54 14.59 14.7 14.69 14.71 14.77 14.81 14.85 14.8 14.86 14.9 14.89 14.87 14.81 15 15 15.15 15.01 14.98 14.98 14.96 14.95 2/28/06 15.09 FUND SNAPSHOT ------------------------------------ Common Share Price $15.09 ------------------------------------ Common Share Net Asset Value $15.06 ------------------------------------ Premium/(Discount) to NAV 0.20% ------------------------------------ Market Yield 5.25% ------------------------------------ Taxable-Equivalent Yield1 8.02% ------------------------------------ Net Assets Applicable to Common Shares ($000) $191,484 ------------------------------------ Average Effective Maturity on Securities (Years) 15.87 ------------------------------------ Leverage-Adjusted Duration 7.36 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 3/18/93) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 6-Month (Cumulative) 3.01% 0.87% ------------------------------------ 1-Year 6.40% 4.75% ------------------------------------ 5-Year 7.12% 6.67% ------------------------------------ 10-Year 7.79% 6.69% ------------------------------------ INDUSTRIES (as a % of total investments) ------------------------------------ Tax Obligation/Limited 30.2% ------------------------------------ U.S. Guaranteed 21.8% ------------------------------------ Water and Sewer 15.4% ------------------------------------ Tax Obligation/General 10.0% ------------------------------------ Education and Civic Organizations 8.4% ------------------------------------ Utilities 8.0% ------------------------------------ Other 6.2% ------------------------------------ 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%. When comparing this Fund to 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, 2006 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 64% AA 6% A 13% BBB 12% BB or Lower 4% N/R 1% Bar Chart: 2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Mar 0.07 Apr 0.07 May 0.07 Jun 0.07 Jul 0.07 Aug 0.07 Sep 0.067 Oct 0.067 Nov 0.067 Dec 0.067 Jan 0.067 Feb 0.067 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 3/01/05 14.07 14.07 14.1 14.16 14.15 14.06 13.84 13.74 13.64 13.64 13.64 13.64 13.52 13.64 13.54 13.26 13.17 13.06 13.06 13.03 13.07 13.1 13.02 13.09 13.08 13.09 13.03 13.21 13.22 13.29 13.5 13.63 13.9 13.81 13.82 13.8 13.76 13.67 13.85 13.85 13.86 13.97 13.97 13.97 14 13.99 13.98 13.99 13.97 13.83 13.92 13.9 13.77 13.89 13.97 13.89 14 13.92 13.91 13.93 13.94 13.99 14.13 14.06 14.1 13.99 14.22 14.33 14.74 14.7 14.49 14.47 14.4 14.3 14.18 14 14.24 14.2 14.12 14.11 14.12 14.12 14.16 14.03 14.1 14.14 14.13 14.15 14.23 14.32 14.31 14.25 14.3 14.2 14.13 14.25 14.13 14.1 14.1 14.07 14.14 14.15 14.2 14.15 14.14 14.34 14.26 14.26 14.26 14.39 14.58 14.37 14.23 14.03 14.18 14.21 14.08 14.08 14.14 14.2 14.14 14.21 14.26 14.34 14.5 14.37 14.35 14.24 14.32 14.45 14.37 14.43 14.43 14.48 14.5 14.44 14.48 14.5 14.35 14.3 14.23 14.1 14.06 14.03 14.09 14.19 13.89 13.91 13.79 13.95 13.9 13.87 13.98 13.95 13.96 13.95 13.95 14 13.9 13.92 13.88 13.9 13.88 13.92 13.9 13.92 13.96 14.05 14.09 14 14.03 14 14.02 14.07 14.07 13.95 13.92 13.94 13.82 13.69 13.69 13.7 13.55 13.8 13.8 13.76 13.76 13.7 13.49 13.45 13.4 13.5 13.55 13.5 13.57 13.9 13.78 13.83 13.81 13.74 13.77 13.77 13.9 14.11 14 13.92 13.87 13.73 13.66 13.67 13.64 13.51 13.49 13.54 13.62 13.62 13.65 13.75 13.88 14 14 14.02 14.2 14.12 14.1 13.96 14 14.02 14.13 14.12 14.15 14.15 14.3 14.2 14.2 14.23 14.5 14.23 14.24 14.5 14.45 14.6 14.5 14.44 14.3 14.28 14.26 14.25 14.26 14 14.03 14.02 14.18 14.12 2/28/06 14.15 FUND SNAPSHOT ------------------------------------ Common Share Price $14.15 ------------------------------------ Common Share Net Asset Value $14.73 ------------------------------------ Premium/(Discount) to NAV -3.94% ------------------------------------ Market Yield 5.68% ------------------------------------ Taxable-Equivalent Yield1 8.67% ------------------------------------ Net Assets Applicable to Common Shares ($000) $85,027 ------------------------------------ Average Effective Maturity on Securities (Years) 16.04 ------------------------------------ Leverage-Adjusted Duration 8.25 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 6/18/93) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 6-Month (Cumulative) 1.43% 0.81% ------------------------------------ 1-Year 5.74% 5.23% ------------------------------------ 5-Year 6.56% 7.62% ------------------------------------ 10-Year 7.56% 7.10% ------------------------------------ INDUSTRIES (as a % of total investments) ------------------------------------ Tax Obligation/Limited 32.1% ------------------------------------ Tax Obligation/General 21.4% ------------------------------------ Water and Sewer 11.4% ------------------------------------ U.S. Guaranteed 11.2% ------------------------------------ Health Care 8.3% ------------------------------------ Utilities 4.4% ------------------------------------ Consumer Staples 4.3% ------------------------------------ Other 6.9% ------------------------------------ 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%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 2 The Fund also paid shareholders a capital gains distribution in December 2005 of $0.0122 per share. 14 Nuveen California Dividend Advantage Municipal Fund NAC Performance OVERVIEW As of February 28, 2006 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 66% AA 4% A 13% BBB 10% N/R 7% Bar Chart: 2005-2006 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 0.0785 Oct 0.0785 Nov 0.0785 Dec 0.0785 Jan 0.0785 Feb 0.0785 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 3/01/05 14.98 14.97 14.94 15.01 15 14.95 14.76 14.78 14.68 14.61 14.62 14.55 14.59 14.58 14.61 14.59 14.33 14.4 14.29 14.4 14.42 14.51 14.6 14.6 14.68 14.7 14.71 14.66 14.72 14.79 14.78 14.73 14.8 14.83 14.88 14.88 14.89 14.86 14.89 14.85 14.82 14.86 14.93 14.93 14.96 15.01 15 15.02 15 15.11 15.27 15.28 15.22 15.29 15.37 15.35 15.45 15.4 15.35 15.39 15.3 15.25 15.31 15.25 15.39 15.53 15.51 15.59 15.6 15.58 15.55 15.55 15.5 15.38 15.34 15.43 15.64 15.67 15.53 15.53 15.5 15.5 15.59 15.51 15.54 15.61 15.5 15.69 15.78 15.7 15.81 15.82 15.9 15.9 15.82 15.81 15.85 15.8 15.88 15.77 15.8 15.9 15.89 15.95 15.99 16.08 16.06 16.06 15.93 16.08 16.15 16.12 15.9 15.95 15.96 15.94 15.9 16 16.13 16.12 16.15 16.15 16.1 16.02 16.04 15.98 16.12 16.05 16.02 16.08 16.07 16.09 16.14 16.12 16.16 16.11 16.2 16.15 16.06 16.04 15.89 15.85 15.83 15.77 15.89 15.81 15.65 15.63 15.59 15.65 15.61 15.67 15.71 15.72 15.67 15.64 15.56 15.54 15.59 15.28 15.03 14.99 15 14.97 14.95 14.9 15 15.08 15.06 14.98 14.9 14.97 15.03 15 14.99 15.08 14.95 15.04 15 15.04 14.91 14.92 14.89 14.89 14.94 14.94 14.91 14.99 15.06 15.2 15.3 15.35 15.26 15.35 15.63 15.64 15.55 15.6 15.6 15.73 15.87 15.8 15.8 15.94 15.85 15.87 16.05 15.86 15.89 15.9 15.96 15.96 15.96 16.03 16.14 16.14 16.29 16.35 16.27 16.3 16.27 16.2 16.18 16.1 16.01 15.97 15.97 16.1 16.1 16.15 16.16 16.16 16.15 16.24 16.21 16.21 16.32 16.32 16.34 16.31 16.15 16.15 16.05 16.05 15.89 15.9 16.04 15.98 15.93 16.03 15.91 15.9 15.9 15.98 2/28/06 16.01 FUND SNAPSHOT ------------------------------------ Common Share Price $16.01 ------------------------------------ Common Share Net Asset Value $15.70 ------------------------------------ Premium/(Discount) to NAV 1.97% ------------------------------------ Market Yield 5.88% ------------------------------------ Taxable-Equivalent Yield1 8.98% ------------------------------------ Net Assets Applicable to Common Shares ($000) $367,832 ------------------------------------ Average Effective Maturity on Securities (Years) 16.36 ------------------------------------ Leverage-Adjusted Duration 7.02 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 5/26/99) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 6-Month (Cumulative) 2.85% 1.46% ------------------------------------ 1-Year 13.67% 5.98% ------------------------------------ 5-Year 8.97% 8.14% ------------------------------------ Since Inception 7.50% 7.75% ------------------------------------ INDUSTRIES (as a % of total investments) ------------------------------------ Tax Obligation/Limited 24.7% ------------------------------------ U.S. Guaranteed 17.3% ------------------------------------ Tax Obligation/General 14.6% ------------------------------------ Transportation 12.5% ------------------------------------ Education and Civic Organizations 8.1% ------------------------------------ Housing/Multifamily 5.5% ------------------------------------ Health Care 4.9% ------------------------------------ Water and Sewer 4.5% ------------------------------------ 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%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 2 The Fund also paid shareholders a capital gains distribution in December 2005 of $0.0334 per share. 15 Nuveen California Dividend Advantage Municipal Fund 2 NVX Performance OVERVIEW As of February 28, 2006 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 72% AA 1% A 11% BBB 10% N/R 6% Bar Chart: 2005-2006 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 0.0725 Oct 0.0725 Nov 0.0725 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. 3/01/05 14.09 14.04 14.11 14.18 14.15 14.16 14.16 14.09 14.06 13.95 14 14.01 13.92 13.9 13.83 13.88 13.64 13.73 13.56 13.56 13.77 13.77 13.71 13.71 13.68 13.76 13.76 13.69 13.72 13.81 13.79 13.68 13.78 13.88 13.98 13.86 13.76 13.84 13.86 13.81 13.86 13.97 14.05 14.05 14 14 14.05 14.16 14.1 14.08 14.07 14.18 14.17 14.24 14.22 14.24 14.24 14.26 14.29 14.24 14.25 14.26 14.32 14.37 14.37 14.42 14.55 14.59 14.69 14.7 14.66 14.7 14.68 14.5 14.47 14.39 14.4 14.43 14.38 14.38 14.37 14.47 14.59 14.59 14.56 14.63 14.7 14.93 14.9 14.97 14.9 14.89 14.83 14.93 14.84 14.73 14.82 14.79 14.82 14.77 14.82 14.84 14.88 14.83 14.93 15 14.97 14.97 14.93 14.96 14.9 15.09 14.79 14.8 15.02 15.14 15.05 15 14.98 15.12 15.16 15.09 15.05 15.04 14.96 14.91 15.05 14.97 15.13 14.98 15.19 15.16 15.25 15.17 15.24 15.1 15.12 15.14 15.05 14.95 14.87 14.85 14.94 14.9 14.98 14.95 14.7 14.6 14.43 14.49 14.68 14.57 14.6 14.65 14.64 14.52 14.4 14.42 14.23 14.09 13.97 13.75 13.86 13.86 13.91 13.97 13.97 14.11 13.98 13.9 14.16 14.12 14.14 14.14 14.24 14.17 14.12 14.19 14.19 14.2 14.11 13.95 13.9 14.03 14 14.05 14.06 14.12 14.04 14.16 14.19 14.2 14.25 14.2 14.21 14.25 14.2 14.25 14.35 14.34 14.5 14.5 14.44 14.44 14.6 14.47 14.46 14.54 14.57 14.6 14.59 14.57 14.6 14.67 14.52 14.52 14.75 14.82 14.85 15 15.24 15.32 15.05 15.21 15.35 15.14 15.27 15.14 15.2 15.17 15.35 15 15.06 15.2 15.07 15.11 15.23 15.23 15.1 15.1 14.84 14.99 15.04 14.92 14.8 14.75 14.8 14.8 14.84 14.9 14.8 14.82 14.9 14.79 2/28/06 14.92 FUND SNAPSHOT ------------------------------------ Common Share Price $14.92 ------------------------------------ Common Share Net Asset Value $15.41 ------------------------------------ Premium/(Discount) to NAV -3.18% ------------------------------------ Market Yield 5.83% ------------------------------------ Taxable-Equivalent Yield1 8.90% ------------------------------------ Net Assets Applicable to Common Shares ($000) $227,948 ------------------------------------ Average Effective Maturity on Securities (Years) 14.83 ------------------------------------ Leverage-Adjusted Duration 7.62 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 3/27/01) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 6-Month (Cumulative) 1.17% 1.43% ------------------------------------ 1-Year 12.54% 6.65% ------------------------------------ Since Inception 6.27% 7.66% ------------------------------------ INDUSTRIES (as a % of total investments) ------------------------------------ Tax Obligation/Limited 19.5% ------------------------------------ U.S. Guaranteed 17.0% ------------------------------------ Tax Obligation/General 16.2% ------------------------------------ Education and Civic Organizations 10.1% ------------------------------------ Water and Sewer 9.2% ------------------------------------ Housing/Multifamily 7.8% ------------------------------------ Health Care 6.2% ------------------------------------ Transportation 6.1% ------------------------------------ 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%. When comparing this Fund to 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, 2006 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 68% AA 2% A 14% BBB 9% N/R 7% Bar Chart: 2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE Mar 0.072 Apr 0.072 May 0.072 Jun 0.072 Jul 0.072 Aug 0.072 Sep 0.072 Oct 0.072 Nov 0.072 Dec 0.072 Jan 0.072 Feb 0.072 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 3/01/05 13.65 13.65 13.65 13.72 13.81 13.76 13.59 13.53 13.46 13.41 13.37 13.31 13.41 13.43 13.45 13.44 13.16 13.2 13.07 13.17 13.23 13.31 13.33 13.37 13.4 13.44 13.41 13.37 13.41 13.38 13.4 13.32 13.42 13.46 13.45 13.47 13.43 13.43 13.43 13.34 13.44 13.43 13.54 13.54 13.62 13.62 13.76 13.68 13.56 13.59 13.74 13.77 13.7 13.8 13.82 13.81 13.8 13.86 13.86 13.92 13.95 13.92 13.9 13.91 13.96 13.99 14 14.02 13.95 14.08 14.01 14.02 14.05 13.95 13.91 13.88 13.96 13.98 13.99 13.99 13.9 13.9 13.96 14.05 14.02 14.01 14.03 14.07 14.08 14.03 14.06 14.17 14.13 14.16 14.12 14.04 13.96 13.93 14.01 14.03 13.95 14.08 14.12 14.01 14.16 14.14 14.15 14.15 14.26 14.39 14.41 14.47 14.38 14.42 14.4 14.5 14.34 14.32 14.38 14.4 14.4 14.35 14.34 14.37 14.33 14.38 14.36 14.35 14.41 14.44 14.49 14.5 14.64 14.65 14.72 14.73 14.75 14.71 14.67 14.57 14.46 14.41 14.53 14.53 14.45 14.19 14.08 14.1 13.86 14 14.04 14.01 14 14.02 13.89 13.86 13.9 14 13.95 13.83 13.66 13.8 13.69 13.7 13.73 13.64 13.73 13.62 13.58 13.57 13.61 13.69 13.74 13.8 13.84 13.9 13.78 13.99 13.8 13.69 13.66 13.57 13.65 13.76 13.67 13.83 13.71 13.64 13.66 13.62 13.85 13.88 14.03 13.89 13.88 13.84 13.83 14 14.05 14.01 13.95 14.04 13.95 14.05 14.02 13.93 13.9 14.06 14.08 14.15 14.13 14.18 14.2 14.39 14.45 14.45 14.48 14.49 14.5 14.66 14.64 14.71 14.64 14.57 14.64 14.58 14.52 14.54 14.58 14.53 14.59 14.65 14.85 14.77 14.67 14.54 14.6 14.65 14.74 14.65 14.51 14.5 14.59 14.57 14.47 14.3 14.42 14.56 14.56 14.55 14.49 14.46 14.5 14.5 2/28/06 14.64 FUND SNAPSHOT ------------------------------------ Common Share Price $14.64 ------------------------------------ Common Share Net Asset Value $15.11 ------------------------------------ Premium/(Discount) to NAV -3.11% ------------------------------------ Market Yield 5.90% ------------------------------------ Taxable-Equivalent Yield1 9.01% ------------------------------------ Net Assets Applicable to Common Shares ($000) $364,328 ------------------------------------ Average Effective Maturity on Securities (Years) 16.53 ------------------------------------ Leverage-Adjusted Duration 8.23 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 9/25/01) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 6-Month (Cumulative) 4.14% 1.58% ------------------------------------ 1-Year 14.01% 6.96% ------------------------------------ Since Inception 5.81% 7.28% ------------------------------------ INDUSTRIES (as a % of total investments) ------------------------------------ Tax Obligation/Limited 27.6% ------------------------------------ Tax Obligation/General 19.8% ------------------------------------ Water and Sewer 8.8% ------------------------------------ Health Care 8.6% ------------------------------------ U.S. Guaranteed 7.4% ------------------------------------ Transportation 6.6% ------------------------------------ Housing/Multifamily 6.6% ------------------------------------ Utilities 6.2% ------------------------------------ Education and Civic Organizations 5.1% ------------------------------------ Other 3.3% ------------------------------------ 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%. When comparing this Fund to 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, 2006 Pie Chart: CREDIT QUALITY (as a % of total investments) Insured 76% U.S. Guaranteed 8% AAA (uninsured) 1% AA (uninsured) 3% A (uninsured) 6% BBB (uninsured) 6% Bar Chart: 2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE Mar 0.076 Apr 0.076 May 0.076 Jun 0.072 Jul 0.072 Aug 0.072 Sep 0.072 Oct 0.072 Nov 0.072 Dec 0.072 Jan 0.072 Feb 0.072 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 3/01/05 14.58 14.55 14.61 14.62 14.62 14.75 14.75 14.62 14.66 14.59 14.58 14.7 14.47 14.64 14.65 14.5 14.46 14.45 14.38 14.57 14.45 14.65 14.64 14.72 14.69 14.75 14.83 14.62 14.72 14.67 14.46 14.53 14.64 14.68 14.54 14.44 14.5 14.45 14.41 14.39 14.4 14.43 14.59 14.59 14.58 14.61 14.74 14.71 14.73 14.69 14.7 14.72 14.58 14.73 14.79 14.77 14.85 14.82 14.88 14.89 15.25 14.95 15 15.2 15.14 15.23 15.2 15.13 15.06 14.91 14.96 14.88 14.89 14.91 14.82 14.9 14.8 14.66 14.58 14.66 14.67 14.8 14.77 14.84 14.76 14.79 14.88 14.88 14.89 14.94 14.94 15.04 15.06 15.05 15 15.13 15.04 14.89 15 14.9 14.8 14.88 14.88 14.93 15 15.08 15.12 15.12 15.15 15.18 15.12 15.11 15.23 15.2 15.17 15 15.05 15.02 15.01 14.93 14.89 14.89 14.99 14.96 14.92 15 15.01 14.98 15.07 15.13 15 15.01 15.07 15.1 15.16 15.22 15.25 15.33 15.31 15.31 15.26 15.3 15.23 15.22 15.04 14.89 14.97 14.92 14.82 15 14.99 14.97 14.86 14.99 15.03 15.03 14.96 15.01 14.96 14.63 14.5 14.25 14.32 14.3 14.39 14.36 14.47 14.71 14.65 14.6 14.67 14.6 14.59 14.56 14.52 14.54 14.42 14.45 14.42 14.45 14.35 14.35 14.25 14.24 14.12 14.1 14.12 14.15 14.2 14.2 14.25 14.38 14.29 14.29 14.35 14.41 14.41 14.57 14.53 14.6 14.71 14.79 14.66 14.89 14.88 14.95 14.91 14.99 15.01 14.89 14.88 14.88 14.98 15.02 15.1 15.1 15.08 15.14 15.01 15.21 15.25 15.23 15.22 15.18 15.37 15.23 15.23 15.24 15.2 15.2 15.09 15.15 15.07 15.14 15.07 15.12 15.3 15.16 15.3 15.22 15.21 15.17 15.13 15.24 15.18 15.19 15.16 15.16 15.14 15.16 15.06 15.35 15.31 15.36 2/28/06 15.25 FUND SNAPSHOT ------------------------------------ Common Share Price $15.25 ------------------------------------ Common Share Net Asset Value $15.60 ------------------------------------ Premium/(Discount) to NAV -2.24% ------------------------------------ Market Yield 5.67% ------------------------------------ Taxable-Equivalent Yield1 8.66% ------------------------------------ Net Assets Applicable to Common Shares ($000) $238,048 ------------------------------------ Average Effective Maturity on Securities (Years) 18.77 ------------------------------------ Leverage-Adjusted Duration 7.96 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 3/25/02) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 6-Month (Cumulative) 4.65% 1.46% ------------------------------------ 1-Year 10.66% 5.98% ------------------------------------ Since Inception 7.01% 8.61% ------------------------------------ INDUSTRIES (as a % of total investments) ------------------------------------ Tax Obligation/Limited 28.6% ------------------------------------ Tax Obligation/General 21.6% ------------------------------------ Utilities 11.8% ------------------------------------ Water and Sewer 11.2% ------------------------------------ U.S. Guaranteed 7.7% ------------------------------------ Education and Civic Organizations 5.8% ------------------------------------ Transportation 3.9% ------------------------------------ Other 9.4% ------------------------------------ 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%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 18 Nuveen Insured California Tax-Free Advantage Municipal Fund NKX Performance OVERVIEW As of February 28, 2006 Pie Chart: CREDIT QUALITY (as a % of total investments) Insured 83% U.S. Guaranteed 1% A (uninsured) 10% BBB (uninsured) 6% Bar Chart: 2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE Mar 0.0695 Apr 0.0695 May 0.0695 Jun 0.066 Jul 0.066 Aug 0.066 Sep 0.063 Oct 0.063 Nov 0.063 Dec 0.063 Jan 0.063 Feb 0.063 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 3/01/05 14.75 14.66 14.7 14.8 14.8 14.75 14.65 14.65 14.7 14.8 14.56 14.4 14.4 14.24 14.24 14.04 14.24 13.96 13.96 14 13.9 13.96 13.93 13.8 13.83 13.92 13.92 14 14.04 13.93 13.9 13.95 13.88 13.89 13.93 13.97 13.9 13.95 13.91 13.91 13.86 14.02 13.88 13.88 13.91 14.26 14.32 14.25 14.23 14.24 14.11 14.11 14.1 14.28 14.28 14.34 14.3 14.16 14.28 14.34 14.46 14.48 14.54 14.62 15.08 14.93 14.78 14.69 14.53 14.53 14.45 14.4 14.39 14.38 14.38 14.4 14.28 14.26 14.32 14.24 14.18 14.21 14.17 14.23 14.26 14.18 14.26 14.25 14.26 14.28 14.18 14.35 14.3 14.42 14.25 14.33 14.25 14.22 14.5 14.5 14.55 14.32 14.28 14.27 14.4 14.36 14.47 14.47 14.44 14.45 14.33 14.5 14.42 14.53 14.69 14.52 14.21 14.2 14.23 14.22 14.22 14.28 14.34 14.36 14.35 14.46 14.68 14.54 14.62 14.62 14.38 14.44 14.59 14.5 14.64 14.66 14.61 14.67 14.7 14.57 14.42 14.41 14.41 14.46 14.46 14.56 14.59 14.7 14.51 14.53 14.21 14.35 14.5 14.55 14.6 14.6 14.26 14.28 14.45 14.31 14.3 14.31 14.31 14.3 14.25 14.16 14.2 13.92 13.87 13.83 13.84 13.89 14.08 14 13.93 13.77 13.95 13.82 13.93 13.93 13.63 13.89 13.85 13.6 13.58 13.55 13.49 13.4 13.54 13.54 13.6 13.59 13.46 13.67 13.62 13.55 13.49 13.45 13.44 13.45 13.45 13.74 13.45 13.42 13.37 13.43 13.36 13.44 13.51 13.48 13.58 13.95 13.67 13.52 13.69 13.69 13.76 13.93 14.07 14.2 14.25 14.27 14.3 14.3 14.24 14.31 14.43 14.45 14.35 14.6 14.48 14.52 14.41 14.41 14.48 14.34 14.44 14.42 14.74 14.66 14.6 14.41 14.41 14.44 14.39 14.35 14.3 14.25 14.04 14.2 14.22 14.16 14.17 14.16 2/28/06 14.46 FUND SNAPSHOT ------------------------------------ Common Share Price $14.46 ------------------------------------ Common Share Net Asset Value $15.01 ------------------------------------ Premium/(Discount) to NAV -3.66% ------------------------------------ Market Yield 5.23% ------------------------------------ Taxable-Equivalent Yield1 7.98% ------------------------------------ Net Assets Applicable to Common Shares ($000) $88,293 ------------------------------------ Average Effective Maturity on Securities (Years) 19.38 ------------------------------------ Leverage-Adjusted Duration 8.42 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 11/21/02) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 6-Month (Cumulative) 3.29% 1.49% ------------------------------------ 1-Year 3.64% 6.02% ------------------------------------ Since Inception 4.81% 7.38% ------------------------------------ INDUSTRIES (as a % of total investments) ------------------------------------ Tax Obligation/General 32.5% ------------------------------------ Tax Obligation/Limited 28.7% ------------------------------------ Health Care 10.2% ------------------------------------ Transportation 9.4% ------------------------------------ Water and Sewer 7.6% ------------------------------------ Other 11.6% ------------------------------------ 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%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 19 Shareholder MEETING REPORT The shareholder meeting was held at the offices of Nuveen's Investments on November 15, 2005. 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 5,823,628 - 11,685,609 - 5,131,733 - Withhold 41,890 - 28,707 - 26,905 - ------------------------------------------------------------------------------------------------------------------------------------ Total 5,865,518 - 11,714,316 - 5,158,638 - ==================================================================================================================================== Lawrence H. Brown For 5,826,101 - 11,684,376 - 5,132,948 - Withhold 39,417 - 29,940 - 25,690 - ------------------------------------------------------------------------------------------------------------------------------------ Total 5,865,518 - 11,714,316 - 5,158,638 - ==================================================================================================================================== Jack B. Evans For 5,823,084 - 11,686,876 - 5,132,239 - Withhold 42,434 - 27,440 - 26,399 - ------------------------------------------------------------------------------------------------------------------------------------ Total 5,865,518 - 11,714,316 - 5,158,638 - ==================================================================================================================================== William C. Hunter For 5,825,201 - 11,686,209 - 5,131,535 - Withhold 40,317 - 28,107 - 27,103 - ------------------------------------------------------------------------------------------------------------------------------------ Total 5,865,518 - 11,714,316 - 5,158,638 - ==================================================================================================================================== David J. Kundert For 5,825,384 - 11,685,645 - 5,132,748 - Withhold 40,134 - 28,671 - 25,890 - ------------------------------------------------------------------------------------------------------------------------------------ Total 5,865,518 - 11,714,316 - 5,158,638 - ==================================================================================================================================== William J. Schneider For - 1,450 - 3,137 - 1,473 Withhold - 4 - 2 - - ------------------------------------------------------------------------------------------------------------------------------------ Total - 1,454 - 3,139 - 1,473 ==================================================================================================================================== Timothy R. Schwertfeger For - 1,450 - 3,137 - 1,473 Withhold - 4 - 2 - - ------------------------------------------------------------------------------------------------------------------------------------ Total - 1,454 - 3,139 - 1,473 ==================================================================================================================================== Judith M. Stockdale For 5,826,601 - 11,686,209 - 5,131,941 - Withhold 38,917 - 28,107 - 26,697 - ------------------------------------------------------------------------------------------------------------------------------------ Total 5,865,518 - 11,714,316 - 5,158,638 - ==================================================================================================================================== Eugene S. Sunshine For 5,825,384 - 11,686,209 - 5,132,054 - Withhold 40,134 - 28,107 - 26,584 - ------------------------------------------------------------------------------------------------------------------------------------ Total 5,865,518 - 11,714,316 - 5,158,638 - ==================================================================================================================================== 20 Shareholder MEETING REPORT (continued) 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 22,493,945 - 14,390,429 - 22,429,140 - Withhold 96,215 - 74,525 - 88,611 - ------------------------------------------------------------------------------------------------------------------------------------ Total 22,590,160 - 14,464,954 - 22,517,751 - ==================================================================================================================================== Lawrence H. Brown For 22,491,345 - 14,388,761 - 22,428,740 - Withhold 98,815 - 76,193 - 89,011 - ------------------------------------------------------------------------------------------------------------------------------------ Total 22,590,160 - 14,464,954 - 22,517,751 - ==================================================================================================================================== Jack B. Evans For 22,479,039 - 14,392,429 - 22,429,140 - Withhold 111,121 - 72,525 - 88,611 - ------------------------------------------------------------------------------------------------------------------------------------ Total 22,590,160 - 14,464,954 - 22,517,751 - ==================================================================================================================================== William C. Hunter For 22,477,270 - 14,393,111 - 22,429,140 - Withhold 112,890 - 71,843 - 88,611 - ------------------------------------------------------------------------------------------------------------------------------------ Total 22,590,160 - 14,464,954 - 22,517,751 - ==================================================================================================================================== David J. Kundert For 22,498,345 - 14,393,111 - 22,429,140 - Withhold 91,815 - 71,843 - 88,611 - ------------------------------------------------------------------------------------------------------------------------------------ Total 22,590,160 - 14,464,954 - 22,517,751 - ==================================================================================================================================== William J. Schneider For - 5,962 - 3,603 - 6,229 Withhold - 4 - 2 - 1 ------------------------------------------------------------------------------------------------------------------------------------ Total - 5,966 - 3,605 - 6,230 ==================================================================================================================================== Timothy R. Schwertfeger For - 5,962 - 3,603 - 6,229 Withhold - 4 - 2 - 1 ------------------------------------------------------------------------------------------------------------------------------------ Total - 5,966 - 3,605 - 6,230 ==================================================================================================================================== Judith M. Stockdale For 22,480,995 - 14,388,301 - 22,428,070 - Withhold 109,165 - 76,653 - 89,681 - ------------------------------------------------------------------------------------------------------------------------------------ Total 22,590,160 - 14,464,954 - 22,517,751 - ==================================================================================================================================== Eugene S. Sunshine For 22,495,039 - 14,393,111 - 22,429,140 - Withhold 95,121 - 71,843 - 88,611 - ------------------------------------------------------------------------------------------------------------------------------------ Total 22,590,160 - 14,464,954 - 22,517,751 - ==================================================================================================================================== 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 14,700,922 - 5,606,208 - Withhold 87,941 - 51,265 - ------------------------------------------------------------------------------------------------------------------------------------ Total 14,788,863 - 5,657,473 - ==================================================================================================================================== Lawrence H. Brown For 14,700,922 - 5,605,208 - Withhold 87,941 - 52,265 - ------------------------------------------------------------------------------------------------------------------------------------ Total 14,788,863 - 5,657,473 - ==================================================================================================================================== Jack B. Evans For 14,698,922 - 5,606,218 - Withhold 89,941 - 51,255 - ------------------------------------------------------------------------------------------------------------------------------------ Total 14,788,863 - 5,657,473 - ==================================================================================================================================== William C. Hunter For 14,700,922 - 5,606,208 - Withhold 87,941 - 51,265 - ------------------------------------------------------------------------------------------------------------------------------------ Total 14,788,863 - 5,657,473 - ==================================================================================================================================== David J. Kundert For 14,700,922 - 5,606,208 - Withhold 87,941 - 51,265 - ------------------------------------------------------------------------------------------------------------------------------------ Total 14,788,863 - 5,657,473 - ==================================================================================================================================== William J. Schneider For - 3,718 - 1,605 Withhold - 16 - 10 ------------------------------------------------------------------------------------------------------------------------------------ Total - 3,734 - 1,615 ==================================================================================================================================== Timothy R. Schwertfeger For - 3,718 - 1,605 Withhold - 16 - 10 ------------------------------------------------------------------------------------------------------------------------------------ Total - 3,734 - 1,615 ==================================================================================================================================== Judith M. Stockdale For 14,697,022 - 5,601,452 - Withhold 91,841 - 56,021 - ------------------------------------------------------------------------------------------------------------------------------------ Total 14,788,863 - 5,657,473 - ==================================================================================================================================== Eugene S. Sunshine For 14,698,322 - 5,602,652 - Withhold 90,541 - 54,821 - ------------------------------------------------------------------------------------------------------------------------------------ Total 14,788,863 - 5,657,473 - ==================================================================================================================================== 22 Nuveen Insured California Premium Income Municipal Fund, Inc. (NPC) Portfolio of INVESTMENTS February 28, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 10.5% (7.4% OF TOTAL INVESTMENTS) $ 2,000 California Educational Facilities Authority, Revenue Bonds, 9/06 at 102.00 AAA $ 2,063,000 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 2,216,311 Bonds, Cal Loan Program, Series 2001A, 5.400%, 3/01/21 - MBIA Insured (Alternative Minimum Tax) 2,500 California State University, Systemwide Revenue Bonds, 5/14 at 100.00 AAA 2,688,075 Series 2004A, 5.000%, 11/01/18 - FSA Insured 1,500 California State University, Systemwide Revenue Bonds, 5/15 at 100.00 AAA 1,598,145 Series 2005A, 5.000%, 11/01/25 - AMBAC Insured 2,000 University of California, Revenue Bonds, Multi-Purpose Projects, 9/10 at 101.00 AAA 2,088,080 Series 2002O, 5.125%, 9/01/31 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 10,125 Total Education and Civic Organizations 10,653,611 ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 4.7% (3.3% OF TOTAL INVESTMENTS) 3,000 California Health Facilities Financing Authority, Insured 8/08 at 101.00 AAA 3,146,100 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 1,606,485 Certificates of Participation, Sutter Health Obligated Group, Series 1999, 5.500%, 8/15/19 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 4,500 Total Health Care 4,752,585 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 0.1% (0.1% OF TOTAL INVESTMENTS) 150 California Housing Finance Agency, Single Family Mortgage 2/07 at 102.00 AAA 154,661 Bonds II, Series 1997A-1, 6.000%, 8/01/20 - MBIA Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 28.8% (20.2% 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 2,076,940 1,250 5.250%, 8/01/25 - MBIA Insured 8/14 at 100.00 AAA 1,374,100 2,000 California, General Obligation Veterans Welfare Bonds, 6/07 at 101.00 AAA 2,063,080 Series 2001BZ, 5.375%, 12/01/24 - MBIA Insured (Alternative Minimum Tax) 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 2,838,568 1,775 5.250%, 9/01/22 - FGIC Insured 9/14 at 100.00 AAA 1,952,891 1,225 Fresno Unified School District, Fresno County, California, 2/13 at 103.00 AAA 1,463,777 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 1,256,452 General Obligation Bonds, Series 2004, 5.000%, 8/01/21 - FGIC Insured 1,130 Los Angeles Community College District, Los Angeles County, 8/15 at 100.00 AAA 1,207,439 California, General Obligation Bonds, Series 2005A, 5.000%, 8/01/24 - FSA Insured Oakland Unified School District, Alameda County, California, General Obligation Bonds, Series 2005: 205 5.000%, 8/01/25 - MBIA Insured 8/15 at 100.00 AAA 218,061 215 5.000%, 8/01/26 - MBIA Insured 8/15 at 100.00 AAA 228,526 23 Nuveen Insured California Premium Income Municipal Fund, Inc. (NPC) (continued) Portfolio of INVESTMENTS February 28, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) $ 3,000 Pomona Unified School District, Los Angeles County, California, 8/11 at 103.00 AAA $ 3,508,290 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 1,444,710 3,500 5.000%, 7/01/22 - FSA Insured 7/11 at 102.00 AAA 3,787,630 4,895 5.000%, 7/01/23 - FSA Insured 7/11 at 102.00 AAA 5,297,271 San Jose-Evergreen Community College District, Santa Clara County, California, General Obligation Bonds, Series 2005A: 165 5.000%, 9/01/25 - MBIA Insured 9/15 at 100.00 AAA 176,126 240 5.000%, 9/01/27 - MBIA Insured 9/15 at 100.00 AAA 255,408 ------------------------------------------------------------------------------------------------------------------------------------ 26,585 Total Tax Obligation/General 29,149,269 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 24.4% (17.1% OF TOTAL INVESTMENTS) 1,000 Brea and Olinda Unified School District, Orange County, 8/11 at 101.00 AAA 1,050,150 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 1,294,036 1,615 5.000%, 12/01/21 - AMBAC Insured 12/13 at 100.00 AAA 1,713,418 1,900 Corona-Norco Unified School District, Riverside County, 9/12 at 100.00 AAA 2,023,766 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 5,224,200 Department of Public Services Facility Phase II, Series 2001, 5.250%, 1/01/34 - AMBAC Insured 150 Hesperia Community Redevelopment Agency, California, 9/15 at 100.00 AAA 160,236 Tax Allocation Bonds, Series 2005A, 5.000%, 9/01/20 - XLCA Insured 1,400 Indian Wells Redevelopment Agency, California, Tax Allocation 9/13 at 100.00 AAA 1,484,896 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 956,773 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 1,073,220 California, Proposition A First Tier Senior Sales Tax Revenue Bonds, Series 2003B, 5.000%, 7/01/19 - MBIA Insured 3,000 Los Angeles County Metropolitan Transportation Authority, 7/15 at 100.00 AAA 3,196,830 California, Proposition A First Tier Senior Sales Tax Revenue Bonds, Series 2005A, 5.000%, 7/01/26 - AMBAC Insured 165 Rialto Redevelopment Agency, California, Tax Allocation 9/15 at 100.00 AAA 171,778 Bonds, Merged Project Area, Series 2005A, 5.000%, 9/01/35 - XLCA Insured 345 Riverside County Public Financing Authority, California, 10/15 at 100.00 AAA 359,259 Tax Allocation Bonds, Multiple Projects, Series 2005A, 5.000%, 10/01/35 - XLCA Insured 3,000 Santa Clara County Financing Authority, California, Lease 11/07 at 102.00 AAA 3,131,640 Revenue Bonds, VMC Facility Replacement Project, Series 1997A, 5.000%, 11/15/22 - AMBAC Insured 2,805 Yucaipa-Calimesa Joint Unified School District, San Bernardino 10/11 at 100.00 AAA 2,896,639 County, California, General Obligation Refunding Bonds, Series 2001A, 5.000%, 10/01/31 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 23,490 Total Tax Obligation/Limited 24,736,841 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 3.5% (2.5% OF TOTAL INVESTMENTS) 3,400 San Diego Unified Port District, California, Revenue Bonds, 9/14 at 100.00 AAA 3,564,390 Series 2004B, 5.000%, 9/01/29 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 43.1% (30.2% OF TOTAL INVESTMENTS) (4) 2,000 California State Public Works Board, Lease Revenue Bonds, 11/09 at 101.00 AAA 2,185,040 Department of Health Services, Series 1999A, 5.750%, 11/01/24 (Pre-refunded 11/01/09) - MBIA Insured 24 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (4) (continued) California, Various Purpose General Obligation Bonds, Series 2000: $ 7,995 5.750%, 3/01/22 (Pre-refunded 3/01/10) - MBIA Insured 3/10 at 101.00 AAA $ 8,795,539 2,000 5.750%, 3/01/27 (Pre-refunded 3/01/10) - MBIA Insured 3/10 at 101.00 AAA 2,200,260 2,500 Fresno Unified School District, Fresno County, California, 8/09 at 102.00 AAA 2,655,975 General Obligation Bonds, Series 2001A, 5.125%, 8/01/26 - FSA Insured (ETM) 6,000 Huntington Park Redevelopment Agency, California, Single No Opt. Call AAA 8,531,880 Family Residential Mortgage Revenue Refunding Bonds, Series 1986A, 8.000%, 12/01/19 (ETM) 1,000 Los Angeles Unified School District, California, General 7/08 at 102.00 AAA 1,056,140 Obligation Bonds, Series 1997A, 5.000%, 7/01/21 (Pre-refunded 7/01/08) - FGIC Insured 5,135 Palmdale Community Redevelopment Agency, California, No Opt. Call AAA 6,832,990 Single Family Restructured Mortgage Revenue Bonds, Series 1986A, 8.000%, 3/01/16 (Alternative Minimum Tax) (ETM) 6,220 Riverside County, California, GNMA Mortgage-Backed Securities No Opt. Call AAA 9,376,151 Program Single Family Mortgage Revenue Bonds, Series 1987A, 9.000%, 5/01/21 (Alternative Minimum Tax) (ETM) 1,485 San Jose, California, Single Family Mortgage Revenue Bonds, No Opt. Call AAA 2,033,871 Series 1985A, 9.500%, 10/01/13 (ETM) ------------------------------------------------------------------------------------------------------------------------------------ 34,335 Total U.S. Guaranteed 43,667,846 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 3.2% (2.2% OF TOTAL INVESTMENTS) 345 Merced Irrigation District, California, Electric System Revenue 9/15 at 100.00 AAA 364,399 Bonds, Series 2005, 5.125%, 9/01/31 - XLCA Insured 2,600 Sacramento Municipal Utility District, California, Electric No Opt. Call AAA 2,843,672 Revenue Refunding Bonds, Series 2003S, 5.000%, 11/15/13 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 2,945 Total Utilities 3,208,071 ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 24.2% (17.0% OF TOTAL INVESTMENTS) 5,255 El Dorado Irrigation District, California, Water and Sewer 3/13 at 100.00 AAA 5,601,830 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 1,307,072 Certificates of Participation, Series 2004A, 5.000%, 3/01/21 - FGIC Insured 1,000 Los Angeles, California, Wastewater System Revenue Bonds, 5/06 at 100.00 AAA 1,000,530 Series 1993D, 4.700%, 11/01/19 - FGIC Insured 750 Sacramento County Sanitation District Financing Authority, 12/14 at 100.00 AAA 804,623 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 3,503,360 Sewerage Revenue Bonds, Series 1997A, 5.250%, 5/15/22 - FGIC Insured 2,150 Santa Clara Valley Water District, California, Water 6/10 at 100.00 AAA 2,261,607 Utility 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 1,380,491 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 1,425,754 Certificates of Participation, Series 2003A, 5.000%, 8/01/20 - MBIA Insured 25 Nuveen Insured California Premium Income Municipal Fund, Inc. (NPC) (continued) Portfolio of INVESTMENTS February 28, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER (continued) $ 2,000 Westlands Water District, California, Revenue Certificates 3/15 at 100.00 AAA $ 2,099,840 of Participation, Series 2005A, 5.000%, 9/01/30 - MBIA Insured 5,000 Wheeler Ridge-Maricopa Water District, Kern County, California, 11/06 at 102.00 AAA 5,175,350 Water Revenue Refunding Bonds, Series 1996, 5.700%, 11/01/15 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 23,440 Total Water and Sewer 24,560,457 ------------------------------------------------------------------------------------------------------------------------------------ $ 128,970 Total Investments (cost $133,196,250) - 142.5% 144,447,731 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.9% 1,885,038 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (44.4)% (45,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 101,332,769 ==================================================================================================================== All of the bonds in the Portfolio of Investments, 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. (2) Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings: Using the higher of Standard & Poor's or Moody's rating. Ratings below BBB by Standard & Poor's Group or Baa by Moody's Investor Service, Inc. are considered to be below investment grade. (4) Investment is 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. (ETM) Investment is escrowed to maturity. See accompanying notes to financial statements. 26 Nuveen Insured California Premium Income Municipal Fund 2, Inc. (NCL) Portfolio of INVESTMENTS February 28, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 12.4% (8.4% 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 $ 2,479,080 3,000 5.750%, 9/01/26 - MBIA Insured 9/06 at 102.00 AAA 3,094,500 2,000 California Educational Facilities Authority, Revenue Bonds, 11/10 at 100.00 Aaa 2,199,300 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 2,216,311 Revenue Bonds, Cal Loan Program, Series 2001A, 5.400%, 3/01/21 - MBIA Insured (Alternative Minimum Tax) 5,380 California State University, Systemwide Revenue Bonds, 5/14 at 100.00 AAA 5,828,961 Series 2004A, 5.000%, 11/01/16 - FSA Insured 1,500 California State University, Systemwide Revenue Bonds, 5/15 at 100.00 AAA 1,598,145 Series 2005A, 5.000%, 11/01/25 - AMBAC Insured 6,000 University of California, Revenue Bonds, Multi-Purpose 5/13 at 100.00 AAA 6,301,440 Projects, Series 2003A, 5.000%, 5/15/27 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 22,405 Total Education and Civic Organizations 23,717,737 ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 1.8% (1.2% OF TOTAL INVESTMENTS) 1,450 California Health Facilities Financing Authority, Insured 7/06 at 102.00 AAA 1,491,368 Health Facility Revenue Refunding Bonds, Mark Twain St. Joseph's Healthcare Corporation, Series 1996A, 6.000%, 7/01/19 - MBIA Insured 1,755 University of California, Hospital Revenue Bonds, UCLA 5/12 at 101.00 AAA 1,940,223 Medical Center, Series 2004A, 5.500%, 5/15/18 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 3,205 Total Health Care 3,431,591 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 0.7% (0.4% OF TOTAL INVESTMENTS) 1,100 California Housing Finance Agency, Single Family Mortgage 8/07 at 101.50 AAA 1,132,879 Bonds, Series 1997C-2-II, 5.625%, 8/01/20 - MBIA Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 14.7% (10.0% OF TOTAL INVESTMENTS) 1,460 ABC Unified School District, Los Angeles County, California, 8/10 at 101.00 AAA 1,607,445 General Obligation Bonds, Series 2000B, 5.750%, 8/01/16 - FGIC Insured 4,400 California, General Obligation Bonds, Series 2003, 2/13 at 100.00 AAA 4,592,016 5.000%, 2/01/31 - MBIA Insured California, General Obligation Bonds, Series 2004: 1,000 5.000%, 2/01/18 - AMBAC Insured 2/14 at 100.00 AAA 1,071,170 2,250 5.000%, 4/01/31 - AMBAC Insured 4/14 at 100.00 AAA 2,362,072 3,000 California, General Obligation Veterans Welfare Bonds, 6/07 at 101.00 AAA 3,094,620 Series 2001BZ, 5.375%, 12/01/24 - MBIA Insured (Alternative Minimum Tax) 1,910 Fresno Unified School District, Fresno County, California, No Opt. Call AAA 2,379,765 General Obligation Bonds, Series 2002A, 6.000%, 8/01/26 - MBIA Insured 1,255 Los Angeles Community College District, Los Angeles County, 8/15 at 100.00 AAA 1,341,005 California, General Obligation Bonds, Series 2005A, 5.000%, 8/01/24 - FSA Insured 2,200 Los Angeles Unified School District, California, General 7/13 at 100.00 AAA 2,361,084 Obligation Bonds, Series 2003F, 5.000%, 7/01/17 - FSA Insured 1,270 Merced City School District, Merced County, California, 8/13 at 100.00 AAA 1,352,283 General Obligation Bonds, Series 2004, 5.000%, 8/01/22 - FGIC Insured 27 Nuveen Insured California Premium Income Municipal Fund 2, Inc. (NCL) (continued) Portfolio of INVESTMENTS February 28, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) Oakland Unified School District, Alameda County, California, General Obligation Bonds, Series 2005: $ 405 5.000%, 8/01/25 - MBIA Insured 8/15 at 100.00 AAA $ 430,803 430 5.000%, 8/01/26 - MBIA Insured 8/15 at 100.00 AAA 457,051 1,125 San Diego Unified School District, California, General Obligation No Opt. Call AAA 575,258 Bonds, Election of 1998, Series 1999A, 0.000%, 7/01/21 - FGIC Insured 2,000 San Francisco Community College District, California, General 6/10 at 102.00 Aaa 2,092,680 Obligation Bonds, Series 2002A, 5.000%, 6/15/26 - FGIC Insured San Jose-Evergreen Community College District, Santa Clara County, California, General Obligation Bonds, Series 2005A: 320 5.000%, 9/01/25 - MBIA Insured 9/15 at 100.00 AAA 341,578 465 5.000%, 9/01/27 - MBIA Insured 9/15 at 100.00 AAA 494,853 1,000 San Ramon Valley Unified School District, Contra Costa County, 8/14 at 100.00 AAA 1,062,440 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 2,603,412 General Obligation Bonds, Series 2004A, 5.000%, 8/01/21 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 26,935 Total Tax Obligation/General 28,219,535 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 44.6% (30.2% 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 3,018,595 8,000 0.000%, 9/01/21 - FSA Insured No Opt. Call AAA 4,067,200 3,500 California Department of Transportation, Federal Highway No Opt. Call AAA 3,835,265 Grant Anticipation Bonds, Series 2004A, 5.000%, 2/01/15 - FGIC Insured 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 1,630,631 1,780 5.000%, 12/01/23 - AMBAC Insured 12/13 at 100.00 AAA 1,879,983 5,000 Compton Community Redevelopment Agency, California, 8/06 at 101.00 AAA 5,112,750 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 4,202,320 Refunding, Merrithew Memorial Hospital Replacement, 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 6,230,640 Department of Public Services Facility Phase II, Series 2001, 5.000%, 1/01/21 - AMBAC Insured 8,280 Fontana Public Financing Authority, California, Tax Allocation 10/15 at 100.00 AAA 8,693,420 Revenue Bonds, North Fontana Redevelopment Project, Series 2005A, 5.000%, 10/01/32 - AMBAC Insured 3,000 Galt Schools Joint Powers Authority, Sacramento County, 11/07 at 102.00 AAA 3,177,960 California, Revenue Refunding Bonds, High School and Elementary School Facilities, Series 1997A, 5.875%, 11/01/24 - MBIA Insured 285 Hesperia Community Redevelopment Agency, California, 9/15 at 100.00 AAA 304,448 Tax Allocation Bonds, Series 2005A, 5.000%, 9/01/20 - XLCA Insured 5,000 Kern County Board of Education, California, Certificates of 5/08 at 102.00 AAA 5,243,550 Participation Refunding, Series 1998A, 5.200%, 5/01/28 - MBIA Insured 5,000 La Quinta Redevelopment Agency, California, Tax Allocation 9/07 at 102.00 AAA 5,200,200 Refunding Bonds, Redevelopment Project Area 1, Series 1998, 5.200%, 9/01/28 - AMBAC Insured 2,300 Long Beach Bond Finance Authority, California, Multiple 8/15 at 100.00 AAA 2,429,996 Project Tax Allocation Bonds, Housing and Gas Utility Financing Project Areas, Series 2005A-1, 5.000%, 8/01/25 - AMBAC Insured 1,000 Los Angeles Community Redevelopment Agency, California, 12/14 at 100.00 AAA 1,069,020 Tax Allocation Bonds, Bunker Hill Project, Series 2004A, 5.000%, 12/01/20 - FSA Insured 1,250 Los Angeles County Metropolitan Transportation Authority, 7/13 at 100.00 AAA 1,341,525 California, Proposition A First Tier Senior Sales Tax Revenue Bonds, Series 2003B, 5.000%, 7/01/19 - MBIA Insured 2,500 Los Angeles County Metropolitan Transportation Authority, 7/15 at 100.00 AAA 2,664,025 California, Proposition A First Tier Senior Sales Tax Revenue Bonds, Series 2005A, 5.000%, 7/01/26 - AMBAC Insured 28 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 3,865 Los Angeles County Metropolitan Transportation Authority, 7/10 at 101.00 AAA $ 4,125,578 California, Proposition C Second Senior Lien Sales Tax Revenue Bonds, Series 2000A, 5.250%, 7/01/30 - FGIC Insured 4,000 Los Angeles, California, Certificates of Participation, 6/13 at 100.00 AAA 4,156,280 Municipal Improvement Corporation, Series 2003AW, 5.000%, 6/01/33 - AMBAC Insured 2,780 Pittsburg Redevelopment Agency, California, Tax Allocation No Opt. Call AAA 3,006,709 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 4,340,873 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 2,219,700 Refunding Bonds, Paguay Redevelopment Project, Series 2000, 5.750%, 6/15/33 - MBIA Insured 325 Rialto Redevelopment Agency, California, Tax Allocation 9/15 at 100.00 AAA 338,351 Bonds, Merged Project Area, Series 2005A, 5.000%, 9/01/35 - XLCA Insured 685 Riverside County Public Financing Authority, California, 10/15 at 100.00 AAA 713,311 Tax Allocation Bonds, Multiple Projects, Series 2005A, 5.000%, 10/01/35 - XLCA Insured 1,000 Rocklin Unified School District, Placer County, California, 9/13 at 100.00 AAA 1,061,770 Special Tax Bonds, Community Facilities District 1, Series 2004, 5.000%, 9/01/25 - MBIA Insured 5,000 San Bernardino Joint Powers Financing Authority, California, 9/09 at 102.00 AAA 5,412,850 Certificates of Participation Refunding, Police Station Financing Project, Series 1999, 5.500%, 9/01/20 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 87,355 Total Tax Obligation/Limited 85,476,950 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 6.8% (4.6% OF TOTAL INVESTMENTS) 6,500 Foothill/Eastern Transportation Corridor Agency, California, 1/10 at 65.32 AAA 3,613,935 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 4,297,240 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 5,172,250 Refunding Bonds, San Francisco International Airport, Second Series 2001, Issue 27A, 5.250%, 5/01/31 - MBIA Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 15,500 Total Transportation 13,083,425 ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 32.3% (21.8% OF TOTAL INVESTMENTS) (4) California Infrastructure Economic Development Bank, Revenue Bonds, Asian Art Museum of San Francisco, Series 2000: 1,295 5.500%, 6/01/19 (Pre-refunded 6/01/10) - MBIA Insured 6/10 at 101.00 AAA 1,417,870 1,000 5.500%, 6/01/20 (Pre-refunded 6/01/10) - MBIA Insured 6/10 at 101.00 AAA 1,094,880 3,450 California State Public Works Board, Lease Revenue Bonds, 11/09 at 101.00 AAA 3,769,194 Department of Health Services, Series 1999A, 5.750%, 11/01/24 (Pre-refunded 11/01/09) - MBIA Insured 2,500 California, Various Purpose General Obligation Bonds, 9/09 at 101.00 AAA 2,705,850 Series 1999, 5.500%, 9/01/24 (Pre-refunded 9/01/09) - FSA Insured California, Various Purpose General Obligation Bonds, Series 2000: 7,995 5.750%, 3/01/22 (Pre-refunded 3/01/10) - MBIA Insured 3/10 at 101.00 AAA 8,795,539 1,900 5.750%, 3/01/27 (Pre-refunded 3/01/10) - MBIA Insured 3/10 at 101.00 AAA 2,090,247 2,580 Central Unified School District, Fresno County, California, 3/06 at 100.00 AAA 2,611,347 General Obligation Bonds, Series 1993, 5.625%, 3/01/18 - AMBAC Insured (ETM) 3,000 Escondido Union High School District, San Diego County, 11/06 at 102.00 AAA 3,105,840 California, General Obligation Bonds, Series 1996, 5.700%, 11/01/10 - MBIA Insured (ETM) Fresno Unified School District, Fresno County, California, General Obligation Bonds, Series 2001F: 1,065 5.125%, 8/01/21 - FSA Insured (ETM) 8/09 at 102.00 AAA 1,138,570 1,160 5.125%, 8/01/22 - FSA Insured (ETM) 8/09 at 102.00 AAA 1,240,133 1,220 5.125%, 8/01/23 - FSA Insured (ETM) 8/09 at 102.00 AAA 1,304,278 1,500 Hacienda La Puente Unified School District, Los Angeles 8/10 at 101.00 AAA 1,630,830 County, California, General Obligation Bonds, Series 2000A, 5.250%, 8/01/25 (Pre-refunded 8/01/10) - MBIA Insured 29 Nuveen Insured California Premium Income Municipal Fund 2, Inc. (NCL) (continued) Portfolio of INVESTMENTS February 28, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (4) (continued) Kern Community College District, California, General Obligation Bonds, Series 2003A: $ 3,655 5.000%, 11/01/20 (Pre-refunded 11/01/13) - FGIC Insured 11/13 at 100.00 AAA $ 3,984,571 2,665 5.000%, 11/01/21 (Pre-refunded 11/01/13) - FGIC Insured 11/13 at 100.00 AAA 2,905,303 1,750 Lake Tahoe Unified School District, El Dorado County, California, 8/09 at 100.00 AAA 1,865,342 General Obligation Bonds, Series 1999A, 5.250%, 8/01/24 (Pre-refunded 8/01/09) - FGIC Insured Manteca Unified School District, San Joaquin County, California, General Obligation Bonds, Series 2004: 1,000 5.250%, 8/01/21 (Pre-refunded 8/01/14) - FSA Insured 8/14 at 100.00 AAA 1,111,440 1,000 5.250%, 8/01/22 (Pre-refunded 8/01/14) - FSA Insured 8/14 at 100.00 AAA 1,111,440 440 Menifee Union School District, Riverside County, California, 9/06 at 102.00 AAA 454,982 Certificates of Participation, School Projects, Series 1996, 6.125%, 9/01/24 (Pre-refunded 9/01/06) - FSA Insured 2,500 Oakland, California, Insured Revenue Bonds, 1800 Harrison 1/10 at 100.00 AAA 2,742,975 Foundation - Kaiser Permanente, Series 1999A, 6.000%, 1/01/29 (Pre-refunded 1/01/10) - AMBAC Insured 4,320 Riverside County, California, GNMA Mortgage-Backed No Opt. Call AAA 5,900,429 Securities Program Single Family Mortgage Revenue Bonds, Series 1987B, 8.625%, 5/01/16 (Alternative Minimum Tax) (ETM) 1,270 Sacramento City Financing Authority, California, Capital 12/09 at 102.00 AAA 1,405,750 Improvement Revenue Bonds, Solid Waste and Redevelopment Projects, Series 1999, 5.800%, 12/01/19 (Pre-refunded 12/01/09) - AMBAC Insured 1,000 Sacramento County Sanitation District Financing Authority, 12/10 at 101.00 AAA 1,101,300 California, Revenue Bonds, Series 2000A, 5.500%, 12/01/20 (Pre-refunded 12/01/10) - AMBAC Insured 3,500 San Francisco Bay Area Rapid Transit District, California, 7/09 at 101.00 AAA 3,775,835 Sales Tax Revenue Bonds, Series 1999, 5.500%, 7/01/34 (Pre-refunded 7/01/09) - FGIC Insured 4,450 Visalia, California, Certificates of Participation Refunding, 12/06 at 102.00 AAA 4,608,331 Motor Vehicle License Fee Enhancement, Series 1996A, 5.375%, 12/01/26 (Pre-refunded 12/01/06) - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 56,215 Total U.S. Guaranteed 61,872,276 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 11.8% (8.0% OF TOTAL INVESTMENTS) 3,740 California Pollution Control Financing Authority, Revenue 9/09 at 101.00 AAA 3,973,675 Refunding Bonds, Southern California Edison Company, Series 1999B, 5.450%, 9/01/29 - MBIA Insured 670 Merced Irrigation District, California, Electric System Revenue 9/15 at 100.00 AAA 707,674 Bonds, Series 2005, 5.125%, 9/01/31 - XLCA Insured 3,215 Modesto Irrigation District, California, Revenue Refunding 10/06 at 102.00 AAA 3,327,525 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 3,740,800 Series 2002II, 5.125%, 7/01/26 - FSA Insured 520 Sacramento City Financing Authority, California, Capital 12/09 at 102.00 AAA 571,631 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 2,044,595 Bonds, Series 2002, 5.250%, 8/01/27 - AMBAC Insured (Alternative Minimum Tax) Santa Clara, California, Subordinate Electric Revenue Bonds, Series 2003A: 2,800 5.000%, 7/01/24 - MBIA Insured 7/13 at 100.00 AAA 2,966,236 5,000 5.000%, 7/01/28 - MBIA Insured 7/13 at 100.00 AAA 5,245,350 ------------------------------------------------------------------------------------------------------------------------------------ 21,395 Total Utilities 22,577,486 ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 22.8% (15.4% OF TOTAL INVESTMENTS) 1,700 Castaic Lake Water Agency, California, Revenue Certificates 8/14 at 100.00 AAA 1,813,628 of Participation, Series 2004A, 5.000%, 8/01/20 - AMBAC Insured 2,975 Chino Basin Regional Finance Authority, California, Sewerage 8/06 at 100.00 AAA 3,008,052 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 2,125,320 Certificates of Participation, Series 2004A, 5.000%, 3/01/21 - FGIC Insured 2,700 Los Angeles County Sanitation Districts Financing Authority, 10/13 at 100.00 AAA 2,877,012 California, Senior Revenue Bonds, Capital Projects, Series 2003A, 5.000%, 10/01/21 - FSA Insured 30 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER (continued) $ 12,000 Orange County Sanitation District, California, Certificates 8/13 at 100.00 AAA $ 12,486,120 of Participation, Series 2003, 5.000%, 2/01/33 - FGIC Insured 2,775 Pomona Public Financing Authority, California, Revenue Bonds, 5/09 at 101.00 AAA 2,949,603 Water Facilities Project, Series 1999AC, 5.500%, 5/01/29 - FGIC Insured 750 Sacramento County Sanitation District Financing Authority, 12/14 at 100.00 AAA 804,623 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 1,604,086 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 3,919,204 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 1,492,778 445 5.000%, 2/01/20 - FGIC Insured 2/14 at 100.00 AAA 473,244 465 5.000%, 2/01/21 - FGIC Insured 2/14 at 100.00 AAA 493,867 2,130 Santa Rosa, Sonoma County, California, Wastewater Revenue 9/14 at 100.00 AAA 2,295,863 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 2,606,125 Certificates of Participation, Series 2003A, 5.000%, 8/01/30 - MBIA Insured 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 2,111,525 2,530 5.000%, 10/01/33 - FGIC Insured 10/13 at 100.00 AAA 2,646,076 ------------------------------------------------------------------------------------------------------------------------------------ 41,575 Total Water and Sewer 43,707,126 ------------------------------------------------------------------------------------------------------------------------------------ $ 275,685 Total Investments (cost $267,686,107) - 147.9% 283,219,005 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.7% 3,265,216 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (49.6)% (95,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 191,484,221 ==================================================================================================================== All of the bonds in the Portfolio of Investments, 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. (2) Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings: Using the higher of Standard & Poor's or Moody's rating. Ratings below BBB by Standard & Poor's Group or Baa by Moody's Investor Service, Inc. are considered to be below investment grade. (4) Investment are 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. (ETM) Investment is escrowed to maturity. See accompanying notes to financial statements. 31 Nuveen California Premium Income Municipal Fund (NCU) Portfolio of INVESTMENTS February 28, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 6.5% (4.3% OF TOTAL INVESTMENTS) $ 1,500 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 Baa3 $ 1,557,645 Settlement Asset-Backed Bonds, Alameda County Tobacco Asset Securitization Corporation, Series 2002, 5.750%, 6/01/29 310 California County Tobacco Securitization Agency, Tobacco 6/15 at 100.00 BBB 300,995 Settlement Asset-Backed Bonds, Sonoma County Tobacco Securitization Corporation, Series 2005, 4.250%, 6/01/21 3,540 California Statewide Financing Authority, Tobacco Settlement 5/12 at 100.00 Baa3 3,651,298 Asset-Backed Bonds, Pooled Tobacco Securitization Program, Series 2002A, 5.625%, 5/01/29 ------------------------------------------------------------------------------------------------------------------------------------ 5,350 Total Consumer Staples 5,509,938 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 1.9% (1.3% OF TOTAL INVESTMENTS) 1,500 University of California, Revenue Bonds, Multi-Purpose Projects, 5/13 at 100.00 AAA 1,621,830 Series 2003A, 5.125%, 5/15/17 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 12.4% (8.3% OF TOTAL INVESTMENTS) 4,705 California Health Facilities Financing Authority, Hospital 5/06 at 100.00 BB 4,705,988 Revenue Bonds, Downey Community Hospital, Series 1993, 5.750%, 5/15/15 480 California Health Facilities Financing Authority, Revenue Bonds, 11/15 at 100.00 A3 490,906 Cedars-Sinai Medical Center, Series 2005, 5.000%, 11/15/34 1,500 California Infrastructure Economic Development Bank, 8/11 at 102.00 A+ 1,598,040 Revenue Bonds, Kaiser Hospital Assistance LLC, Series 2001A, 5.550%, 8/01/31 California Statewide Community Development Authority, Revenue Bonds, Daughters of Charity Health System, Series 2005A: 125 5.250%, 7/01/24 7/15 at 100.00 BBB+ 131,348 260 5.250%, 7/01/35 7/15 at 100.00 BBB+ 269,997 3,100 California Statewide Community Development Authority, No Opt. Call AAA 3,355,161 Revenue Bonds, Sherman Oaks Health System, Series 1998A, 5.000%, 8/01/22 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 10,170 Total Health Care 10,551,440 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 1.9% (1.3% OF TOTAL INVESTMENTS) 1,600 California Statewide Community Development Authority, 7/08 at 101.00 BBB 1,653,440 Revenue Refunding Bonds, Irvine Apartment Communities Development, Series 1998A, 5.250%, 5/15/25 (Mandatory put 5/15/13) ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 0.3% (0.2% OF TOTAL INVESTMENTS) 280 California Housing Finance Agency, Single Family Mortgage 2/07 at 102.00 AAA 288,700 Bonds II, Series 1997A-1, 6.000%, 8/01/20 - MBIA Insured (Alternative Minimum Tax) 35 California Rural Home Mortgage Finance Authority, No Opt. Call AAA 35,537 Mortgage-Backed Securities Program Single Family Mortgage Revenue Bonds, Series 1996C, 7.500%, 8/01/27 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 315 Total Housing/Single Family 324,237 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 31.9% (21.4% OF TOTAL INVESTMENTS) California, General Obligation Bonds, Series 2003: 1,000 5.250%, 11/01/19 - RAAI Insured 11/13 at 100.00 AA 1,091,030 1,055 5.250%, 2/01/21 8/13 at 100.00 A 1,141,426 1,500 5.000%, 2/01/31 - MBIA Insured 2/13 at 100.00 AAA 1,565,460 California, General Obligation Bonds, Series 2004: 1,750 5.000%, 4/01/22 4/14 at 100.00 A 1,846,985 1,750 5.000%, 2/01/23 2/14 at 100.00 A 1,841,683 1,400 5.200%, 4/01/26 4/14 at 100.00 A 1,502,396 California, General Obligation Bonds, Series 2005: 1,000 5.000%, 3/01/31 3/16 at 100.00 A 1,044,440 3,000 5.000%, 3/01/32 3/16 at 100.00 A 3,132,090 32 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) $ 4,000 California, General Obligation Veterans Welfare Bonds, 6/06 at 100.00 A $ 4,002,400 Series 1999BR, 5.300%, 12/01/29 (Alternative Minimum Tax) 1,000 Fremont Unified School District, Alameda County, California, 8/12 at 101.00 AAA 1,064,790 General Obligation Bonds, Series 2002A, 5.000%, 8/01/21 - FGIC Insured 550 Los Angeles Community College District, Los Angeles County, 8/15 at 100.00 AAA 586,366 California, General Obligation Bonds, Series 2005A, 5.000%, 6/01/26 - FSA Insured 2,250 Los Angeles Unified School District, California, General 7/13 at 100.00 AAA 2,386,665 Obligation Bonds, Series 2003A, 5.000%, 7/01/22 - FSA Insured 1,570 Los Angeles Unified School District, California, General 7/15 at 100.00 AAA 1,673,008 Obligation Bonds, Series 2005A-1, 5.000%, 7/01/25 - FGIC Insured Oakland Unified School District, Alameda County, California, General Obligation Bonds, Series 2005: 190 5.000%, 8/01/25 - MBIA Insured 8/15 at 100.00 AAA 202,105 200 5.000%, 8/01/26 - MBIA Insured 8/15 at 100.00 AAA 212,582 3,000 Pomona Unified School District, Los Angeles County, California, 8/11 at 103.00 AAA 3,452,220 General Obligation Refunding Bonds, Series 1997A, 6.150%, 8/01/15 - MBIA Insured 15 Riverside Community College District, California, General 8/14 at 100.00 AAA 16,495 Obligation Bonds, Series 2004A, 5.250%, 8/01/22 - MBIA Insured San Jose-Evergreen Community College District, Santa Clara County, California, General Obligation Bonds, Series 2005A: 140 5.000%, 9/01/25 - MBIA Insured 9/15 at 100.00 AAA 149,440 210 5.000%, 9/01/27 - MBIA Insured 9/15 at 100.00 AAA 223,482 ------------------------------------------------------------------------------------------------------------------------------------ 25,580 Total Tax Obligation/General 27,135,063 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 47.8% (32.1% OF TOTAL INVESTMENTS) 1,000 Bell Community Redevelopment Agency, California, Tax 10/13 at 100.00 AA 1,074,290 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 1,078,595 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 1,794,819 1,865 5.000%, 12/01/24 - AMBAC Insured 12/13 at 100.00 AAA 1,964,684 5,920 California State Public Works Board, Lease Revenue Bonds, 11/09 at 101.00 AAA 6,378,502 Department of Veterans Affairs, Southern California Veterans Home - Chula Vista Facility, Series 1999A, 5.600%, 11/01/19 - AMBAC Insured 1,720 California, Economic Recovery Revenue Bonds, Series 2004A, 7/14 at 100.00 AA- 1,866,922 5.000%, 7/01/15 130 Hesperia Community Redevelopment Agency, California, 9/15 at 100.00 AAA 138,871 Tax Allocation Bonds, Series 2005A, 5.000%, 9/01/20 - XLCA Insured 3,500 Livermore Redevelopment Agency, California, Tax Allocation 8/11 at 100.00 AAA 3,628,450 Revenue Bonds, Livermore Redevelopment Project Area, Series 2001A, 5.000%, 8/01/26 - MBIA Insured 1,595 Los Angeles Community Redevelopment Agency, California, 6/06 at 100.00 BBB- 1,596,834 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 2,146,440 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 Lien 3/13 at 100.00 AAA 2,217,460 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, Special 8/08 at 102.00 N/R 1,070,730 Tax Refunding Bonds, Parkway Business Centre, Series 1998, 6.500%, 8/15/09 155 Rialto Redevelopment Agency, California, Tax Allocation Bonds, 9/15 at 100.00 AAA 161,367 Merged Project Area, Series 2005A, 5.000%, 9/01/35 - XLCA Insured 310 Riverside County Public Financing Authority, California, 10/15 at 100.00 AAA 322,812 Tax Allocation Bonds, Multiple Projects, Series 2005A, 5.000%, 10/01/35 - XLCA Insured 33 Nuveen California Premium Income Municipal Fund (NCU) (continued) Portfolio of INVESTMENTS February 28, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 1,500 Sacramento City Financing Authority, California, Lease Revenue No Opt. Call AAA $ 1,695,420 Refunding Bonds, Series 1993A, 5.400%, 11/01/20 - MBIA Insured 3,000 Sacramento City Financing Authority, California, Lease Revenue No Opt. Call AA- 3,326,100 Refunding Bonds, Series 1993B, 5.400%, 11/01/20 5,000 San Francisco Bay Area Rapid Transit District, California, 7/15 at 100.00 AAA 5,340,050 Sales Tax Revenue Bonds, Series 2005A, 5.000%, 7/01/24 - 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 1,577,670 1,000 5.800%, 9/01/27 9/08 at 101.00 Baa3 1,051,780 2,050 Santa Barbara County, California, Certificates of Participation, 12/11 at 102.00 AAA 2,240,691 Series 2001, 5.250%, 12/01/19 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 37,925 Total Tax Obligation/Limited 40,672,487 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 6.1% (4.1% OF TOTAL INVESTMENTS) 3,000 California Infrastructure Economic Development Bank, First 7/13 at 100.00 AAA 3,192,990 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- 1,962,420 Toll Road Revenue Bonds, Series 1995A, 5.000%, 1/01/35 ------------------------------------------------------------------------------------------------------------------------------------ 5,000 Total Transportation 5,155,410 ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 16.7% (11.2% OF TOTAL INVESTMENTS) (4) California Department of Water Resources, Power Supply Revenue Bonds, Series 2002A: 400 5.375%, 5/01/17 (Pre-refunded 5/01/12) - XLCA Insured 5/12 at 101.00 AAA 443,172 2,250 5.125%, 5/01/18 (Pre-refunded 5/01/12) 5/12 at 101.00 A2 (4) 2,461,905 1,200 California Health Facilities Financing Authority, Revenue Bonds, 12/09 at 101.00 A3 (4) 1,325,712 Cedars-Sinai Medical Center, Series 1999A, 6.125%, 12/01/30 (Pre-refunded 12/01/09) Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2003B: 1,000 5.625%, 6/01/33 (Pre-refunded 6/01/13) 6/13 at 100.00 Aaa 1,117,310 1,000 5.500%, 6/01/33 (Pre-refunded 6/01/13) 6/13 at 100.00 Aaa 1,109,440 2,000 Puerto Rico, General Obligation and Public Improvement Bonds, 7/10 at 100.00 AAA 2,179,280 Series 2000, 5.750%, 7/01/21 (Pre-refunded 7/01/10) - MBIA Insured 1,185 Riverside Community College District, California, General 8/14 at 100.00 AAA 1,317,056 Obligation Bonds, Series 2004A, 5.250%, 8/01/22 (Pre-refunded 8/01/14) - MBIA Insured 2,000 San Francisco Airports Commission, California, Revenue Bonds, 5/06 at 102.00 AAA 2,046,940 San Francisco International Airport, Second Series Issue 10A, 5.700%, 5/01/26 (Pre-refunded 5/01/06) - MBIA Insured (Alternative Minimum Tax) 2,000 Vista, California, Mobile Home Park Revenue Bonds, Vista 3/24 at 100.00 N/R (4) 2,169,200 Manor Mobile Home Park Project, Series 1999A, 5.750%, 3/15/29 (Pre-refunded 3/15/24) ------------------------------------------------------------------------------------------------------------------------------------ 13,035 Total U.S. Guaranteed 14,170,015 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 6.6% (4.4% OF TOTAL INVESTMENTS) 275 Los Angeles Department of Water and Power, California, 7/13 at 100.00 AAA 292,691 Power System Revenue Bonds, Series 2003A-2, 5.000%, 7/01/21 - MBIA Insured 295 Merced Irrigation District, California, Electric System Revenue 9/15 at 100.00 AAA 311,588 Bonds, Series 2005, 5.125%, 9/01/31 - XLCA Insured 4,580 Sacramento Municipal Utility District, California, Electric 8/12 at 100.00 AAA 4,977,910 Revenue Refunding Bonds, Series 2002Q, 5.250%, 8/15/20 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 5,150 Total Utilities 5,582,189 ------------------------------------------------------------------------------------------------------------------------------------ 34 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 17.1% (11.4% OF TOTAL INVESTMENTS) $ 1,125 Burbank, California, Wastewater System Revenue Bonds, 6/14 at 100.00 AAA $ 1,192,421 Series 2004A, 5.000%, 6/01/23 - AMBAC Insured 1,095 California Statewide Community Development Authority, 10/13 at 100.00 AAA 1,181,209 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 Refunding 9/09 at 102.00 AAA 5,428,250 Bonds, Series 1999A, 5.700%, 9/01/29 - FGIC Insured 3,495 Orange County Sanitation District, California, Certificates 8/13 at 100.00 AAA 3,762,682 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 1,063,890 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+ 1,875,811 of Participation, Water Systems Project, Series 2003, 5.500%, 7/01/33 ------------------------------------------------------------------------------------------------------------------------------------ 13,510 Total Water and Sewer 14,504,263 ------------------------------------------------------------------------------------------------------------------------------------ $ 119,135 Total Investments (cost $120,575,075) - 149.2% 126,880,312 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.4% 1,146,625 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (50.6)% (43,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 85,026,937 ==================================================================================================================== (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings: Using the higher of Standard & Poor's or Moody's rating. Ratings below BBB by Standard & Poor's Group or Baa by Moody's Investor Service, Inc. are considered to be below investment grade. (4) Investment is backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. N/R Investment is not rated. See accompanying notes to financial statements. 35 Nuveen California Dividend Advantage Municipal Fund (NAC) Portfolio of INVESTMENTS February 28, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 2.7% (1.9% OF TOTAL INVESTMENTS) $ 1,330 California County Tobacco Securitization Agency, Tobacco 6/15 at 100.00 BBB $ 1,291,364 Settlement Asset-Backed Bonds, Sonoma County Tobacco Securitization Corporation, Series 2005, 4.250%, 6/01/21 5,200 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB 5,695,404 Tobacco Settlement Asset-Backed Bonds, Series 2003A-1, 6.250%, 6/01/33 3,035 Tobacco Securitization Authority of Southern California, 6/12 at 100.00 BBB 3,096,489 Tobacco Settlement Asset-Backed Bonds, San Diego County Tobacco Asset Securitization Corporation, Senior Series 2001A, 5.250%, 6/01/27 ------------------------------------------------------------------------------------------------------------------------------------ 9,565 Total Consumer Staples 10,083,257 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 11.8% (8.1% OF TOTAL INVESTMENTS) 5,000 California Educational Facilities Authority, Revenue Bonds, 12/15 at 100.00 Aaa 5,278,250 Pepperdine University, Series 2005A, 5.000%, 12/01/35 - AMBAC Insured 615 California Statewide Community Development Authority, 10/13 at 100.00 N/R 635,190 Revenue Bonds, Notre Dame de Namur University, Series 2003, 6.500%, 10/01/23 3,000 Long Beach Bond Financing Authority, California, Lease Revenue 11/11 at 100.00 AAA 3,282,810 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, San Diego 1/10 at 101.00 Aa2 734,678 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 6,278,880 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 11,480,282 11,305 5.000%, 9/01/21 - FGIC Insured 9/10 at 101.00 AAA 12,010,771 3,500 University of California, Revenue Bonds, Multi-Purpose Projects, 5/13 at 100.00 AAA 3,784,270 Series 2003A, 5.125%, 5/15/17 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 40,890 Total Education and Civic Organizations 43,485,131 ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 7.2% (4.9% OF TOTAL INVESTMENTS) 2,160 California Health Facilities Financing Authority, Health 3/13 at 100.00 A 2,263,961 Facility Revenue Bonds, Adventist Health System/West, Series 2003A, 5.000%, 3/01/15 1,990 California Health Facilities Financing Authority, Revenue Bonds, 11/15 at 100.00 A3 2,035,213 Cedars-Sinai Medical Center, Series 2005, 5.000%, 11/15/34 530 California Statewide Community Development Authority, 7/15 at 100.00 BBB+ 556,913 Revenue Bonds, Daughters of Charity Health System, Series 2005A, 5.250%, 7/01/24 8,000 Central California Joint Powers Health Finance Authority, 2/10 at 101.00 Baa2 8,380,960 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+ 10,675,140 National Medical Center, Series 1999A, 5.250%, 4/01/31 2,500 Whittier, California, Health Facility Revenue Bonds, 6/12 at 101.00 A 2,676,175 Presbyterian Intercommunity Hospital, Series 2002, 5.600%, 6/01/22 ------------------------------------------------------------------------------------------------------------------------------------ 25,680 Total Health Care 26,588,362 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 8.0% (5.5% OF TOTAL INVESTMENTS) 5,190 California Statewide Community Development Authority, 8/12 at 105.00 Aaa 5,810,880 GNMA Collateralized Housing Revenue Refunding Bonds, Crowne Pointe Project, Series 2002F, 6.750%, 8/20/37 7,250 California Statewide Community Development Authority, 7/08 at 101.00 BBB 7,366,943 Revenue Refunding Bonds, Irvine Apartment Communities Development, Series 1998A, 4.900%, 5/15/25 (Mandatory put 5/15/08) 36 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY (continued) $ 5,000 Contra Costa County, California, Multifamily Housing Revenue 6/09 at 102.00 N/R $ 5,263,550 Bonds, Delta View Apartments Project, Series 1999C, 6.750%, 12/01/30 (Alternative Minimum Tax) 1,725 Rohnert Park Finance Authority, California, Senior Lien Revenue 9/13 at 100.00 A- 1,887,150 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 1,214,259 Revenue Bonds, Rancho Feliz Mobile Home Park, Series 2003B, 6.625%, 9/15/38 7,500 San Bernardino County Housing Authority, California, 6/29 at 100.00 A- 7,775,250 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) ------------------------------------------------------------------------------------------------------------------------------------ 27,785 Total Housing/Multifamily 29,318,032 ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 2.3% (1.7% OF TOTAL INVESTMENTS) 8,500 Riverside County Public Financing Authority, California, 5/09 at 101.00 BBB- 8,791,550 Certificates of Participation, Air Force Village West, Series 1999, 5.800%, 5/15/29 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 21.4% (14.6% OF TOTAL INVESTMENTS) California, General Obligation Bonds, Series 2003: 2,000 5.250%, 11/01/19 - RAAI Insured 11/13 at 100.00 AA 2,182,060 5,200 5.250%, 2/01/20 8/13 at 100.00 A 5,625,984 California, General Obligation Bonds, Series 2004: 5,000 5.125%, 4/01/23 4/14 at 100.00 A 5,326,650 4,150 5.125%, 4/01/25 4/14 at 100.00 A 4,400,660 2,000 California, General Obligation Bonds, Series 2005, 3/16 at 100.00 A 2,088,880 5.000%, 3/01/31 California, General Obligation Refunding Bonds, Series 2002: 8,000 5.000%, 2/01/12 No Opt. Call A 8,540,640 4,435 6.000%, 4/01/16 - AMBAC Insured No Opt. Call AAA 5,215,826 5,000 Fresno Unified School District, Fresno County, California, No Opt. Call AAA 6,229,750 General Obligation Bonds, Series 2002A, 6.000%, 8/01/26 - MBIA Insured 2,335 Los Angeles Community College District, Los Angeles County, 8/15 at 100.00 AAA 2,489,390 California, General Obligation Bonds, Series 2005A, 5.000%, 6/01/26 - FSA Insured 10,845 Los Angeles Unified School District, California, General 7/12 at 100.00 AAA 11,606,427 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 3,667,366 California, General Obligation Bonds, Series 2004A, 5.250%, 8/01/21 - FSA Insured 5,210 Oak Valley Hospital District, Stanislaus County, California, 7/14 at 101.00 Aaa 5,428,768 General Obligation Bonds, Series 2005, 5.000%, 7/01/35 - FGIC Insured 1,750 Oakland Unified School District, Alameda County, California, 8/08 at 101.00 AAA 1,831,182 General Obligation Bonds, Series 2001, 5.125%, 8/01/21 - FSA Insured Oakland Unified School District, Alameda County, California, General Obligation Bonds, Series 2005: 770 5.000%, 8/01/25 - MBIA Insured 8/15 at 100.00 AAA 819,057 810 5.000%, 8/01/26 - MBIA Insured 8/15 at 100.00 AAA 860,957 5,000 San Diego Unified School District, San Diego County, 7/13 at 101.00 AAA 5,510,200 California, General Obligation Bonds, Series 2003E, 5.250%, 7/01/20 - FSA Insured San Jose-Evergreen Community College District, Santa Clara County, California, General Obligation Bonds, Series 2005A: 600 5.000%, 9/01/25 - MBIA Insured 9/15 at 100.00 AAA 640,458 880 5.000%, 9/01/27 - MBIA Insured 9/15 at 100.00 AAA 936,496 1,300 Ventura County Community College District, California, 8/12 at 101.00 AAA 1,407,328 General Obligation Bonds, Series 2002A, 5.000%, 8/01/15 - MBIA Insured 3,605 West Contra Costa Unified School District, Contra Costa County, 8/11 at 101.00 AAA 3,835,792 California, General Obligation Bonds, Series 2003B, 5.000%, 8/01/21 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 72,225 Total Tax Obligation/General 78,643,871 ------------------------------------------------------------------------------------------------------------------------------------ 37 Nuveen California Dividend Advantage Municipal Fund (NAC) (continued) Portfolio of INVESTMENTS February 28, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 36.2% (24.7% 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 $ 1,035,100 615 5.800%, 9/01/35 9/14 at 102.00 N/R 645,344 1,990 Brentwood Infrastructure Financing Authority, California, 9/12 at 100.00 AAA 2,096,803 Infrastructure Revenue Refunding Bonds, Series 2002A, 5.125%, 9/02/24 - FSA Insured 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 1,205,804 1,165 5.375%, 11/01/19 - FSA Insured 11/11 at 100.00 AAA 1,265,551 7,400 California, Economic Recovery Revenue Bonds, Series 2004A, 7/14 at 100.00 AA- 8,032,108 5.000%, 7/01/15 2,000 Capistrano Unified School District, Orange County, California, 9/13 at 100.00 N/R 2,119,420 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 3,705,682 Heritage Village Community Facilities District 2, Series 1998A, 5.250%, 9/01/17 - MBIA Insured 1,125 Fontana, California, Special Tax Bonds, Sierra Community 9/14 at 100.00 N/R 1,191,398 Facilities District 22, Series 2004, 6.000%, 9/01/34 3,980 Garden Grove, California, Certificates of Participation, 3/12 at 101.00 AAA 4,362,478 Financing Project, Series 2002A, 5.500%, 3/01/22 - AMBAC Insured 540 Hesperia Community Redevelopment Agency, California, 9/15 at 100.00 AAA 576,850 Tax Allocation Bonds, Series 2005A, 5.000%, 9/01/20 - XLCA Insured 4,500 Inglewood Redevelopment Agency, California, Tax Allocation No Opt. Call AAA 5,078,475 Refunding Bonds, Merged Area Redevelopment Project, Series 1998A, 5.250%, 5/01/23 - AMBAC Insured 2,000 Lee Lake Water District, Riverside County, California, Special 9/13 at 102.00 N/R 2,218,140 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 2,422,464 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 1,608,300 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 5,205,050 California, Proposition C Second Senior Lien Sales Tax Revenue Refunding Bonds, Series 1998A, 5.000%, 7/01/23 - AMBAC Insured 3,555 Los Angeles County Public Works Financing Authority, 10/07 at 101.00 AA 3,674,590 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 1,614,104 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 9,748,780 Refunding Bonds, Project Area 1, Series 2001, 5.000%, 3/01/19 - MBIA Insured 5,545 Oakland Joint Power Financing Authority, California, Lease No Opt. Call AAA 6,258,420 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 3,651,999 Lien Tax Allocation Bonds, Central District Redevelopment Project, Series 2003, 5.500%, 9/01/16 - FGIC Insured 3,800 Orange County Local Transportation Authority, California, No Opt. Call AAA 3,972,938 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 5,895,568 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 1,059,180 Tax Allocation Bonds, Merged Redevelopment Project Areas, Series 2004, 5.000%, 12/01/24 - AMBAC Insured 1,055 Poway Redevelopment Agency, California, Tax Allocation 12/11 at 101.00 AAA 1,158,211 Bonds, Paguay Redevelopment Project, Series 2001, 5.375%, 12/15/16 - AMBAC Insured 8,100 Poway Redevelopment Agency, California, Tax Allocation 12/10 at 102.00 AAA 8,989,785 Refunding Bonds, Paguay Redevelopment Project, Series 2000, 5.750%, 6/15/33 - MBIA Insured 620 Rialto Redevelopment Agency, California, Tax Allocation 9/15 at 100.00 AAA 645,470 Bonds, Merged Project Area, Series 2005A, 5.000%, 9/01/35 - XLCA Insured 38 Nuveen California Dividend Advantage Municipal Fund (NAC) (continued) Portfolio of INVESTMENTS February 28, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 1,290 Riverside County Public Financing Authority, California, 10/15 at 100.00 AAA $ 1,343,316 Tax Allocation Bonds, Multiple Projects, Series 2005A, 5.000%, 10/01/35 - XLCA Insured 1,860 Riverside Redevelopment Agency, California, Tax Allocation 8/13 at 100.00 AAA 2,012,371 Refunding Bonds, Merged Project Areas, Series 2003, 5.250%, 8/01/22 - MBIA Insured 2,500 Sacramento City Financing Authority, California, Lease Revenue No Opt. Call AAA 2,857,050 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 1,234,214 Community Facilities District 4, Series 2003C, 6.000%, 9/01/33 2,695 San Jose Financing Authority, California, Lease Revenue 6/12 at 100.00 AAA 2,919,251 Refunding Bonds, Civic Center Project, Series 2002B, 5.250%, 6/01/19 - AMBAC Insured 24,060 San Jose Redevelopment Agency, California, Tax Allocation 8/08 at 102.00 A 24,834,251 Bonds, Merged Area Redevelopment Project, Series 1998, 5.250%, 8/01/29 1,595 San Marcos Public Facilities Authority, California, 9/09 at 102.00 N/R 1,677,047 Special Tax Bonds, Community Facilities District 99-1, Series 2003B, 6.000%, 9/01/24 2,810 West Patterson Financing Authority, California, Special 9/13 at 103.00 N/R 3,173,726 Tax Bonds, Community Facilities District 01-1, Series 2003B, 7.000%, 9/01/38 2,000 West Patterson Financing Authority, California, Special 9/13 at 102.00 N/R 2,118,060 Tax Bonds, Community Facilities District 01-1, Series 2004B, 6.000%, 9/01/39 1,350 West Patterson Financing Authority, California, Special 9/13 at 103.00 N/R 1,451,250 Tax Bonds, Community Facilities District 2001-1, Series 2004A, 6.125%, 9/01/39 ------------------------------------------------------------------------------------------------------------------------------------ 124,220 Total Tax Obligation/Limited 133,058,548 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 18.3% (12.5% OF TOTAL INVESTMENTS) 8,150 Foothill/Eastern Transportation Corridor Agency, California, 1/10 at 101.00 BBB- 8,408,111 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 9,138,553 Refunding Bonds, Series 2001B, 5.500%, 8/01/18 - AMBAC Insured (Alternative Minimum Tax) 23,000 Port of Oakland, California, Revenue Bonds, Series 2000K, 5/10 at 100.00 AAA 24,591,370 5.750%, 11/01/29 - FGIC Insured (Alternative Minimum Tax) 23,275 San Francisco Airports Commission, California, Revenue 5/10 at 101.00 AAA 25,083,233 Bonds, San Francisco International Airport, Second Series 2000, Issue 24A, 5.750%, 5/01/30 - FSA Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 62,940 Total Transportation 67,221,267 ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 25.4% (17.3% OF TOTAL INVESTMENTS) (4) California Department of Water Resources, Power Supply Revenue Bonds, Series 2002A: 2,500 5.375%, 5/01/17 (Pre-refunded 5/01/12) - XLCA Insured 5/12 at 101.00 AAA 2,769,825 9,750 5.125%, 5/01/18 (Pre-refunded 5/01/12) 5/12 at 101.00 A2 (4) 10,668,255 15,000 California Health Facilities Financing Authority, Revenue Bonds, 12/09 at 101.00 A3 (4) 16,571,400 Cedars-Sinai Medical Center, Series 1999A, 6.125%, 12/01/30 (Pre-refunded 12/01/09) 8,400 California Health Facilities Financing Authority, Revenue 10/08 at 101.00 AAA 8,843,016 Bonds, Kaiser Permanente System, Series 1998B, 5.250%, 10/01/14 (ETM) 5,000 California Statewide Community Development Authority, 11/09 at 102.00 N/R (4) 5,770,000 Certificates of Participation, Pride Industries and Pride One Inc., Series 1999, 7.250%, 11/01/29 (Pre-refunded 11/01/09) 17,400 Los Angeles Unified School District, California, General 7/09 at 101.00 AAA 18,634,704 Obligation Bonds, Series 1999C, 5.250%, 7/01/24 (Pre-refunded 7/01/09) - MBIA Insured Northern California Tobacco Securitization Authority, Tobacco Settlement Asset-Backed Bonds, Series 2001A: 2,500 5.250%, 6/01/31 (Pre-refunded 6/01/11) 6/11 at 100.00 Aaa 2,701,850 4,500 5.375%, 6/01/41 (Pre-refunded 6/01/11) 6/11 at 100.00 Aaa 4,890,060 5,840 Orange County Water District, California, Revenue Certificates 8/09 at 101.00 AA+ (4) 6,443,214 of Participation, Series 1999A, 5.375%, 8/15/29 (ETM) 8,160 Orange County Water District, California, Revenue Certificates 8/09 at 101.00 AA+ (4) 8,791,013 of Participation, Series 1999A, 5.375%, 8/15/29 (Pre-refunded 8/15/09) 39 Nuveen California Dividend Advantage Municipal Fund (NAC) (continued) Portfolio of INVESTMENTS February 28, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (4) (continued) $ 4,000 Puerto Rico, General Obligation and Public Improvement 7/10 at 100.00 AAA $ 4,358,560 Bonds, Series 2000, 5.750%, 7/01/16 (Pre-refunded 7/01/10) - MBIA Insured 2,560 Southwestern Community College District, San Diego County, 8/14 at 100.00 AAA 2,805,146 California, General Obligation Bonds, Series 2004, 5.000%, 8/01/23 (Pre-refunded 8/01/14) - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 85,610 Total U.S. Guaranteed 93,247,043 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 6.3% (4.3% OF TOTAL INVESTMENTS) 3,630 Imperial Irrigation District, California, Certificates of 11/13 at 100.00 AAA 3,915,935 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 7,482,650 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 9,037,173 Power System Revenue 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 1,277,196 Power System Revenue Bonds, Series 2003A-2, 5.000%, 7/01/21 - MBIA Insured 1,270 Merced Irrigation District, California, Electric System Revenue 9/15 at 100.00 AAA 1,341,412 Bonds, Series 2005, 5.125%, 9/01/31 - XLCA Insured ------------------------------------------------------------------------------------------------------------------------------------ 21,470 Total Utilities 23,054,366 ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 6.6% (4.5% OF TOTAL INVESTMENTS) 9,165 California Department of Water Resources, Water System 12/11 at 100.00 AAA 9,862,182 Revenue Bonds, Central Valley Project, Series 2001W, 5.250%, 12/01/22 - FSA Insured 8,250 Pico Rivera Water Authority, California, Revenue Bonds, 12/11 at 102.00 N/R 8,843,092 Series 2001A, 6.250%, 12/01/32 5,115 San Francisco City and County Public Utilities Commission, 11/12 at 100.00 AAA 5,490,748 California, Water Revenue Bonds, Series 2002A, 5.000%, 11/01/18 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 22,530 Total Water and Sewer 24,196,022 ------------------------------------------------------------------------------------------------------------------------------------ $ 501,415 Total Investments (cost $504,598,945) - 146.2% 537,687,449 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.4% 5,144,526 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (47.6)% (175,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 367,831,975 ==================================================================================================================== (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings: Using the higher of Standard & Poor's or Moody's rating. Ratings below BBB by Standard & Poor's Group or Baa by Moody's Investor Service, Inc. are considered to be below investment grade. (4) Investment is backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. N/R Investment is not rated. (ETM) Investment is escrowed to maturity. See accompanying notes to financial statements. 40 Nuveen California Dividend Advantage Municipal Fund 2 (NVX) Portfolio of INVESTMENTS February 28, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 5.2% (3.6% OF TOTAL INVESTMENTS) $ 825 California County Tobacco Securitization Agency, Tobacco 6/15 at 100.00 BBB $ 801,034 Settlement Asset-Backed Bonds, Sonoma County Tobacco Securitization Corporation, Series 2005, 4.250%, 6/01/21 4,625 California County Tobacco Securitization Agency, 6/12 at 100.00 Baa3 4,741,319 Tobacco Settlement Asset-Backed Bonds, Stanislaus County Tobacco Funding Corporation, Series 2002A, 5.500%, 6/01/33 3,200 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB 3,504,864 Tobacco Settlement Asset-Backed Bonds, Series 2003A-1, 6.250%, 6/01/33 2,800 Tobacco Securitization Authority of Southern California, 6/12 at 100.00 BBB 2,862,888 Tobacco Settlement Asset-Backed Bonds, San Diego County Tobacco Asset Securitization Corporation, Senior Series 2001A, 5.500%, 6/01/36 ------------------------------------------------------------------------------------------------------------------------------------ 11,450 Total Consumer Staples 11,910,105 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 14.8% (10.1% OF TOTAL INVESTMENTS) 2,000 California Educational Facilities Authority, Revenue Bonds, 6/11 at 101.00 AAA 2,125,580 Stanford University, Series 2001Q, 5.250%, 12/01/32 6,375 California Educational Facilities Authority, Student Loan 3/08 at 102.00 Aaa 6,648,934 Revenue Bonds, Cal Loan Program, Series 2001A, 5.400%, 3/01/21 - MBIA Insured (Alternative Minimum Tax) California State Public Works Board, Lease Revenue Bonds, University of California, UCLA Replacement Hospital Project, Series 2002A: 8,880 5.375%, 10/01/16 - FSA Insured 10/12 at 100.00 AAA 9,722,002 10,570 5.375%, 10/01/18 - FSA Insured 10/12 at 100.00 AAA 11,516,225 620 California Statewide Community Development Authority, 10/13 at 100.00 N/R 640,355 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 3,181,890 Revenue Refunding Bonds, Long Beach Aquarium of the South Pacific, Series 2001, 5.250%, 11/01/30 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 31,445 Total Education and Civic Organizations 33,834,986 ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 9.2% (6.2% OF TOTAL INVESTMENTS) 2,000 California Health Facilities Financing Authority, Revenue Bonds, 4/12 at 100.00 BBB+ 2,151,040 Casa Colina Inc., Series 2001, 6.000%, 4/01/22 1,240 California Health Facilities Financing Authority, Revenue Bonds, 11/15 at 100.00 A3 1,268,173 Cedars-Sinai Medical Center, Series 2005, 5.000%, 11/15/34 500 California Infrastructure Economic Development Bank, Revenue 8/11 at 102.00 A+ 532,680 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 1,011,794 University of California - Davis Medical Center, Series 2004II-A, 5.000%, 11/01/22 - MBIA Insured 2,185 California Statewide Community Development Authority, No Opt. Call A+ 2,414,010 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 2,699,100 Hospital Revenue Bonds, Monterey Peninsula Hospital, Series 2003B, 5.250%, 6/01/18 - FSA Insured California Statewide Community Development Authority, Revenue Bonds, Daughters of Charity Health System, Series 2005A: 330 5.250%, 7/01/24 7/15 at 100.00 BBB+ 346,757 190 5.250%, 7/01/35 7/15 at 100.00 BBB+ 197,306 5,355 California Statewide Community Development Authority, 11/36 at 100.00 A+ 5,490,696 Revenue Bonds, Kaiser Permanente System, Series 2002E, 4.700%, 11/01/36 (Mandatory put 6/01/09) 3,000 Central California Joint Powers Health Finance Authority, 2/10 at 101.00 Baa2 3,142,860 Certificates of Participation, Community Hospitals of Central California Obligated Group, Series 2000, 6.000%, 2/01/30 41 Nuveen California Dividend Advantage Municipal Fund 2 (NVX) (continued) Portfolio of INVESTMENTS February 28, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE (continued) $ 1,500 Whittier, California, Health Facility Revenue Bonds, 6/12 at 101.00 A $ 1,605,705 Presbyterian Intercommunity Hospital, Series 2002, 5.600%, 6/01/22 ------------------------------------------------------------------------------------------------------------------------------------ 19,755 Total Health Care 20,860,121 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 11.4% (7.8% OF TOTAL INVESTMENTS) 2,450 ABAG Finance Authority for Non-Profit Corporations, 8/30 at 100.00 BBB 2,563,019 California, Multifamily Housing Revenue Refunding Bonds, United Dominion/2000 Post Apartments, Series 2000B, 6.250%, 8/15/30 (Mandatory put 8/15/08) 3,460 California Statewide Community Development Authority, 8/12 at 105.00 Aaa 3,873,920 GNMA Collateralized Housing Revenue Refunding Bonds, Crowne Pointe Project, Series 2002F, 6.750%, 8/20/37 5,962 California Statewide Community Development Authority, 6/11 at 102.00 AAA 6,474,911 Multifamily Housing Revenue Refunding Bonds, Claremont Village Apartments, Series 2001D, 5.500%, 6/01/31 (Mandatory put 6/01/16) (Alternative Minimum Tax) 3,250 California Statewide Community Development Authority, 7/08 at 101.00 BBB 3,302,423 Revenue Refunding Bonds, Irvine Apartment Communities Development, Series 1998A, 4.900%, 5/15/25 (Mandatory put 5/15/08) 4,000 Daly City Housing Development Finance Agency, California, 12/13 at 102.00 A- 4,431,800 Mobile Home Park Revenue Bonds, Franciscan Mobile Home Park Project, Series 2002A, 5.850%, 12/15/32 1,055 Rohnert Park Finance Authority, California, Senior Lien Revenue 9/13 at 100.00 A- 1,154,170 Bonds, Rancho Feliz Mobile Home Park, Series 2003A, 5.750%, 9/15/38 700 Rohnert Park Finance Authority, California, Subordinate Lien 9/13 at 100.00 N/R 758,912 Revenue Bonds, Rancho Feliz Mobile Home Park, Series 2003B, 6.625%, 9/15/38 3,045 Yucaipa Redevelopment Agency, California, Mobile Home 5/11 at 102.00 N/R 3,440,972 Park Revenue Bonds, Rancho del Sol and Grandview, Series 2001A, 6.750%, 5/15/36 ------------------------------------------------------------------------------------------------------------------------------------ 23,922 Total Housing/Multifamily 26,000,127 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 0.5% (0.3% OF TOTAL INVESTMENTS) 960 California Rural Home Mortgage Finance Authority, 6/11 at 102.00 AAA 965,184 Mortgage-Backed Securities Program Single Family Mortgage Revenue Bonds, Series 2001A, 5.650%, 12/01/31 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 0.7% (0.5% OF TOTAL INVESTMENTS) 1,550 California Health Facilities Financing Authority, 1/13 at 100.00 A 1,622,664 Cal-Mortgage Insured Revenue Bonds, Northern California Retired Officers Community Corporation - Paradise Valley Estates, Series 2002, 5.125%, 1/01/22 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 23.8% (16.2% OF TOTAL INVESTMENTS) California, General Obligation Bonds, Series 2003: 3,000 5.250%, 2/01/20 8/13 at 100.00 A 3,245,760 1,400 5.250%, 2/01/21 8/13 at 100.00 A 1,514,688 1,350 California, General Obligation Bonds, Series 2004, 4/14 at 100.00 A 1,431,540 5.125%, 4/01/25 5,000 California, General Obligation Refunding Bonds, Series 2002, No Opt. Call A 5,337,900 5.000%, 2/01/12 4,225 California, General Obligation Veterans Welfare Bonds, 6/06 at 101.00 AAA 4,288,291 Series 2001BV, 5.600%, 12/01/32 - FSA Insured 3,615 Colton Joint Unified School District, San Bernardino County, 8/12 at 102.00 AAA 4,014,711 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 3,197,861 3,300 5.000%, 8/01/22 - FGIC Insured 8/12 at 100.00 AAA 3,511,794 1,325 Golden West Schools Financing Authority, California, No Opt. Call AAA 1,583,349 General Obligation Revenue Refunding Bonds, School District Program, Series 1998A, 6.650%, 8/01/13 - MBIA Insured 1,445 Los Angeles Community College District, Los Angeles County, 8/15 at 100.00 AAA 1,540,543 California, General Obligation Bonds, Series 2005A, 5.000%, 6/01/26 - FSA Insured 10,840 Los Angeles Unified School District, California, General 7/12 at 100.00 AAA 11,601,075 Obligation Bonds, Series 2002E, 5.000%, 7/01/19 - MBIA Insured 42 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) $ 1,250 Los Angeles Unified School District, California, General 7/13 at 100.00 AAA $ 1,364,688 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 1,512,032 California, General Obligation Bonds, Series 2004A, 5.250%, 8/01/21 - FGIC Insured Oakland Unified School District, Alameda County, California, General Obligation Bonds, Series 2005: 475 5.000%, 8/01/25 - MBIA Insured 8/15 at 100.00 AAA 505,262 500 5.000%, 8/01/26 - MBIA Insured 8/15 at 100.00 AAA 531,455 2,000 Puerto Rico, General Obligation and Public Improvement No Opt. Call AAA 2,328,460 Bonds, Series 2001A, 5.500%, 7/01/20 - MBIA Insured San Jose-Evergreen Community College District, Santa Clara County, California, General Obligation Bonds, Series 2005A: 370 5.000%, 9/01/25 - MBIA Insured 9/15 at 100.00 AAA 394,949 545 5.000%, 9/01/27 - MBIA Insured 9/15 at 100.00 AAA 579,989 4,050 Santa Rosa High School District, Sonoma County, California, 5/11 at 101.00 AAA 4,352,251 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 1,234,449 General Obligation Bonds, Series 2002A, 5.000%, 8/01/21 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 50,230 Total Tax Obligation/General 54,071,047 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 28.6% (19.5% OF TOTAL INVESTMENTS) Beaumont Financing Authority, California, Local Agency Revenue Bonds, Series 2004D: 650 5.500%, 9/01/24 9/14 at 102.00 N/R 672,815 385 5.800%, 9/01/35 9/14 at 102.00 N/R 403,996 4,900 California State Public Works Board, Lease Revenue Bonds, 12/13 at 100.00 A- 5,415,725 Department of Corrections, Series 2003C, 5.500%, 6/01/16 4,000 California, Economic Recovery Revenue Bonds, Series 2004A, 7/14 at 100.00 AA- 4,341,680 5.000%, 7/01/15 1,200 Capistrano Unified School District, Orange County, California, 9/13 at 100.00 N/R 1,271,652 Special Tax Bonds, Community Facilities District 90-2 - Talega, Series 2003, 6.000%, 9/01/33 4,845 Encinitas Public Financing Authority, California, Lease Revenue 4/08 at 102.00 AAA 5,086,426 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 794,265 Facilities District 22, Series 2004, 6.000%, 9/01/34 335 Hesperia Community Redevelopment Agency, California, 9/15 at 100.00 AAA 357,860 Tax Allocation Bonds, Series 2005A, 5.000%, 9/01/20 - XLCA Insured 4,000 Industry Urban Development Agency, California, Tax Allocation 5/07 at 101.50 AAA 4,156,480 Refunding Bonds, Civic, Recreational and Industrial Redevelopment Project 1, Series 2002, 5.500%, 5/01/19 - MBIA Insured 2,000 Lake Elsinore Public Finance Authority, California, Local Agency 10/13 at 102.00 N/R 2,185,020 Revenue Refunding Bonds, Series 2003H, 6.000%, 10/01/20 1,265 Lee Lake Water District, Riverside County, California, Special 9/13 at 102.00 N/R 1,402,974 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 1,453,478 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 1,072,200 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 8,328,080 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 5,536,350 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 3,657,549 Lien Tax Allocation Bonds, Central District Redevelopment Project, Series 2003, 5.500%, 9/01/16 - FGIC Insured 43 Nuveen California Dividend Advantage Municipal Fund 2 (NVX) (continued) Portfolio of INVESTMENTS February 28, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 2,000 Orange County, California, Special Tax Bonds, Community 8/11 at 101.00 N/R $ 2,050,640 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- 2,411,500 Appropriation Bonds, Series 2002E, 6.000%, 8/01/26 385 Rialto Redevelopment Agency, California, Tax Allocation 9/15 at 100.00 AAA 400,816 Bonds, Merged Project Area, Series 2005A, 5.000%, 9/01/35 - XLCA Insured 800 Riverside County Public Financing Authority, California, 10/15 at 100.00 AAA 833,064 Tax Allocation Bonds, Multiple Projects, Series 2005A, 5.000%, 10/01/35 - XLCA Insured 6,000 Riverside County Redevelopment Agency, California, 10/11 at 102.00 AAA 6,413,700 Tax Allocation Bonds, Jurupa Valley Project Area, Series 2001, 5.250%, 10/01/35 - AMBAC Insured 700 Sacramento, California, Special Tax Bonds, North Natomas 9/14 at 100.00 N/R 751,261 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 1,025,154 Tax Bonds, Community Facilities District 99-1, Series 2003B, 6.000%, 9/01/24 1,530 San Marcos Public Facilities Authority, California, Tax Allocation 8/15 at 100.00 AAA 1,603,165 Bonds, Project Areas 2 and 3, Series 2005C, 5.000%, 8/01/35 - AMBAC Insured 1,930 West Patterson Financing Authority, California, Special 9/13 at 103.00 N/R 2,161,098 Tax Bonds, Community Facilities District 01-1, Series 2003B, 6.750%, 9/01/30 500 West Patterson Financing Authority, California, Special 9/13 at 102.00 N/R 529,515 Tax Bonds, Community Facilities District 01-1, Series 2004B, 6.000%, 9/01/39 850 West Patterson Financing Authority, California, Special 9/13 at 103.00 N/R 913,750 Tax Bonds, Community Facilities District 2001-1, Series 2004A, 6.125%, 9/01/39 ------------------------------------------------------------------------------------------------------------------------------------ 60,615 Total Tax Obligation/Limited 65,230,213 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 9.0% (6.1% OF TOTAL INVESTMENTS) 7,000 Foothill/Eastern Transportation Corridor Agency, California, 1/14 at 101.00 BBB- 6,146,490 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 5,877,263 5.000%, 11/01/16 - MBIA Insured (Alternative Minimum Tax) San Francisco Airports Commission, California, Revenue Bonds, San Francisco International Airport, Second Series 2003, Issue 29A: 2,430 5.250%, 5/01/18 - FGIC Insured (Alternative Minimum Tax) 5/13 at 100.00 AAA 2,590,380 2,555 5.250%, 5/01/19 - FGIC Insured (Alternative Minimum Tax) 5/13 at 100.00 AAA 2,718,750 1,000 San Francisco Airports Commission, California, Revenue Bonds, 5/13 at 100.00 AAA 1,073,700 San Francisco International Airport, Second Series 2003, Issue 29B, 5.125%, 5/01/17 - FGIC Insured 2,000 San Francisco Airports Commission, California, Revenue 5/12 at 100.00 AAA 2,118,080 Refunding Bonds, San Francisco International Airport, Second Series 2002, Issue 28A, 5.250%, 5/01/17 - MBIA Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 20,570 Total Transportation 20,524,663 ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 24.8% (17.0% OF TOTAL INVESTMENTS) (4) 9,000 Anitoch Area Public Facilities Financing Agency, California, 8/11 at 100.00 AAA 9,777,419 Special Tax Bonds, Community Facilities District 1989-1, Series 2001, 5.250%, 8/01/25 (Pre-refunded 8/01/11) - MBIA Insured 6,000 California Department of Water Resources, Power Supply 5/12 at 101.00 Aaa 6,565,080 Revenue Bonds, Series 2002A, 5.125%, 5/01/18 (Pre-refunded 5/01/12) 8,230 Los Angeles Unified School District, California, General 7/10 at 100.00 AAA 8,909,963 Obligation Bonds, Series 2000D, 5.375%, 7/01/25 (Pre-refunded 7/01/10) - FGIC Insured 3,000 Northern California Tobacco Securitization Authority, 6/11 at 100.00 Aaa 3,260,040 Tobacco Settlement Asset-Backed Bonds, Series 2001A, 5.375%, 6/01/41 (Pre-refunded 6/01/11) Santa Clara Valley Transportation Authority, California, Sales Tax Revenue Bonds, Series 2001A: 15,090 5.000%, 6/01/25 (Pre-refunded 6/01/11) - MBIA Insured 6/11 at 100.00 AAA 16,181,157 2,000 5.000%, 6/01/26 (Pre-refunded 6/01/11) - MBIA Insured 6/11 at 100.00 AAA 2,144,620 44 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (4) (continued) $ 6,200 Southwestern Community College District, San Diego County, 8/11 at 101.00 AAA $ 6,824,960 California, General Obligation Bonds, Series 2001, 5.375%, 8/01/25 (Pre-refunded 8/01/11) - AMBAC Insured 2,710 Southwestern Community College District, San Diego County, 8/14 at 100.00 AAA 2,969,510 California, General Obligation Bonds, Series 2004, 5.000%, 8/01/21 (Pre-refunded 8/01/14) - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 52,230 Total U.S. Guaranteed 56,632,749 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 4.5% (3.1% OF TOTAL INVESTMENTS) 5,000 Anaheim Public Finance Authority, California, Second Lien 10/14 at 100.00 AAA 5,448,550 Electric Distribution Revenue Bonds, Series 2004, 5.250%, 10/01/21 - MBIA Insured 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 798,248 1,000 5.000%, 7/01/23 - MBIA Insured 7/13 at 100.00 AAA 1,063,480 790 Merced Irrigation District, California, Electric System Revenue 9/15 at 100.00 AAA 834,422 Bonds, Series 2005, 5.125%, 9/01/31 - XLCA Insured 2,000 Santa Clara, California, Subordinate Electric Revenue Bonds, 7/13 at 100.00 AAA 2,180,820 Series 2003A, 5.250%, 7/01/20 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 9,540 Total Utilities 10,325,520 ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 13.5% (9.2% OF TOTAL INVESTMENTS) 2,740 California Department of Water Resources, Water System 12/12 at 100.00 AAA 2,943,500 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 5,093,452 Costa Counties, California, Water System Subordinated Revenue Bonds, Series 2001, 5.000%, 6/01/26 - MBIA Insured 2,655 El Dorado Irrigation District, California, Water and Sewer 3/14 at 100.00 AAA 2,825,106 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 1,793,449 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 7,326,879 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 10,890,399 California, Clean Water Revenue Refunding Bonds, Series 2003A, 5.250%, 10/01/20 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 28,880 Total Water and Sewer 30,872,785 ------------------------------------------------------------------------------------------------------------------------------------ $ 311,147 Total Long-Term Investments (cost $314,751,642) - 146.0% 332,850,164 =============----------------------------------------------------------------------------------------------------------------------- 45 Nuveen California Dividend Advantage Municipal Fund 2 (NVX) (continued) Portfolio of INVESTMENTS February 28, 2006 (Unaudited) PRINCIPAL AMOUNT (000) DESCRIPTION (1) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ SHORT-TERM INVESTMENTS - 0.5% (0.4% OF TOTAL INVESTMENTS) $ 1,200 California Department of Water Resources, Power Supply VMIG-1 $ 1,200,000 Revenue Bonds, Variable Rate Demand Obligations, Series 2002C-7, 3.150%, 5/01/22 - FSA Insured (5) ------------------------------------------------------------------------------------------------------------------------------------ $ 1,200 Total Short-Term Investments (cost $1,200,000) 1,200,000 =============----------------------------------------------------------------------------------------------------------------------- Total Investments (cost $315,951,642) - 146.5% 334,050,164 -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.8% 3,897,470 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (48.3)% (110,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 227,947,634 ==================================================================================================================== (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings: Using the higher of Standard & Poor's or Moody's rating. Ratings below BBB by Standard & Poor's Group or Baa by Moody's Investor Service, Inc. are considered to be below investment grade. (4) Investment is 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. (5) Investment has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term investment. 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. N/R Investment is not rated. See accompanying notes to financial statements. 46 Nuveen California Dividend Advantage Municipal Fund 3 (NZH) Portfolio of INVESTMENTS February 28, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 3.4% (2.2% OF TOTAL INVESTMENTS) $ 1,340 California County Tobacco Securitization Agency, Tobacco 6/15 at 100.00 BBB $ 1,301,073 Settlement Asset-Backed Bonds, Sonoma County Tobacco Securitization Corporation, Series 2005, 4.250%, 6/01/21 6,100 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB 6,681,147 Tobacco Settlement Asset-Backed Bonds, Series 2003A-1, 6.250%, 6/01/33 4,200 Tobacco Securitization Authority of Southern California, 6/12 at 100.00 BBB 4,294,332 Tobacco Settlement Asset-Backed Bonds, San Diego County Tobacco Asset Securitization Corporation, Senior Series 2001A, 5.500%, 6/01/36 ------------------------------------------------------------------------------------------------------------------------------------ 11,640 Total Consumer Staples 12,276,552 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 7.6% (5.1% OF TOTAL INVESTMENTS) 3,825 California Educational Facilities Authority, Student Loan 3/08 at 102.00 Aaa 3,989,360 Revenue Bonds, Cal Loan Program, Series 2001A, 5.400%, 3/01/21 - MBIA Insured (Alternative Minimum Tax) 3,600 California State Public Works Board, Lease Revenue Bonds, 10/12 at 100.00 AAA 3,922,272 University of California, UCLA Replacement Hospital Project, Series 2002A, 5.375%, 10/01/17 - FSA Insured 620 California Statewide Community Development Authority, 10/13 at 100.00 N/R 640,355 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 7,957,661 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 3,073,660 Projects, Series 2000K, 5.000%, 9/01/23 4,000 University of California, Revenue Bonds, Multi-Purpose 5/13 at 100.00 AAA 4,252,640 Projects, Series 2003A, 5.000%, 5/15/23 - AMBAC Insured 3,820 University of California, Revenue Bonds, Research Facilities, 9/09 at 101.00 AAA 3,957,444 Series 2001E, 5.000%, 9/01/26 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 26,450 Total Education and Civic Organizations 27,793,392 ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 13.0% (8.6% 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+ 4,302,080 2,000 6.125%, 4/01/32 4/12 at 100.00 BBB+ 2,136,260 2,020 California Health Facilities Financing Authority, Revenue Bonds, 11/15 at 100.00 A3 2,065,894 Cedars-Sinai Medical Center, Series 2005, 5.000%, 11/15/34 9,000 California Infrastructure Economic Development Bank, Revenue 8/11 at 102.00 A+ 9,588,240 Bonds, Kaiser Hospital Assistance LLC, Series 2001A, 5.550%, 8/01/31 6,525 California Statewide Community Development Authority, No Opt. Call A+ 7,299,191 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 6,963,678 Hospital Revenue Bonds, Monterey Peninsula Hospital, Series 2003B, 5.250%, 6/01/18 - FSA Insured 7,665 California Statewide Community Development Authority, 11/09 at 102.00 A 8,098,532 Insured Mortgage Hospital Revenue Bonds, Mission Community Hospital, Series 2001, 5.375%, 11/01/21 540 California Statewide Community Development Authority, 7/15 at 100.00 BBB+ 567,421 Revenue Bonds, Daughters of Charity Health System, Series 2005A, 5.250%, 7/01/24 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 1,873,775 1,740 6.000%, 2/01/30 2/10 at 101.00 Baa2 1,822,859 47 Nuveen California Dividend Advantage Municipal Fund 3 (NZH) (continued) Portfolio of INVESTMENTS February 28, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE (continued) $ 2,500 Whittier, California, Health Facility Revenue Bonds, 6/12 at 101.00 A $ 2,676,175 Presbyterian Intercommunity Hospital, Series 2002, 5.600%, 6/01/22 ------------------------------------------------------------------------------------------------------------------------------------ 44,210 Total Health Care 47,394,105 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 10.0% (6.6% OF TOTAL INVESTMENTS) 4,750 ABAG Finance Authority for Non-Profit Corporations, 8/30 at 100.00 BBB 4,972,015 California, Multifamily Housing Revenue Refunding Bonds, United Dominion/2000 Post Apartments, Series 2000B 6.400%, 8/15/30 (Mandatory put 8/15/08) (Alternative Minimum Tax) 4,000 ABAG Finance Authority for Non-Profit Corporations, California, 8/30 at 100.00 BBB 4,184,520 Multifamily Housing Revenue Refunding Bonds, United Dominion/2000 Post Apartments, Series 2000B 6.250%, 8/15/30 (Mandatory put 8/15/08) 5,190 California Statewide Community Development Authority, 8/12 at 105.00 Aaa 5,810,880 GNMA Collateralized Housing Revenue Refunding Bonds, Crowne Pointe Project, Series 2002F, 6.750%, 8/20/37 2,000 Daly City Housing Development Finance Agency, California, 12/13 at 102.00 A- 2,197,100 Mobile Home Park Revenue Bonds, Franciscan Mobile Home Park Project, Series 2002A, 5.800%, 12/15/25 1,735 Rohnert Park Finance Authority, California, Senior Lien Revenue 9/13 at 100.00 A- 1,898,090 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 1,219,680 Revenue Bonds, Rancho Feliz Mobile Home Park, Series 2003B, 6.625%, 9/15/38 3,610 San Bernardino County Housing Authority, California, 11/11 at 105.00 Aaa 3,956,055 GNMA Collateralized Multifamily Mortgage Revenue Bonds, Pacific Palms Mobile Home Park, Series 2001A, 6.700%, 12/20/41 7,500 San Bernardino County Housing Authority, California, 6/29 at 100.00 A- 7,775,250 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) 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 1,300,800 2,880 5.450%, 2/20/43 (Alternative Minimum Tax) 8/11 at 102.00 AAA 2,980,138 ------------------------------------------------------------------------------------------------------------------------------------ 34,040 Total Housing/Multifamily 36,294,528 ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 1.5% (1.1% OF TOTAL INVESTMENTS) 2,450 California Health Facilities Financing Authority, Cal-Mortgage 1/13 at 100.00 A 2,564,856 Insured Revenue Bonds, Northern California Retired Officers Community Corporation - Paradise Valley Estates, Series 2002, 5.125%, 1/01/22 California Health Facilities Financing Authority, Insured Senior Living Revenue Bonds, Aldersly Project, Series 2002A: 1,500 5.125%, 3/01/22 3/12 at 101.00 A 1,571,880 1,315 5.250%, 3/01/32 3/12 at 101.00 A 1,375,648 ------------------------------------------------------------------------------------------------------------------------------------ 5,265 Total Long-Term Care 5,512,384 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 29.8% (19.8% OF TOTAL INVESTMENTS) 9,335 California, General Obligation Bonds, Series 2002, No Opt. Call AAA 11,013,620 6.000%, 2/01/16 - FSA Insured 9,000 California, General Obligation Bonds, Series 2004, 4/14 at 100.00 A 9,587,970 5.125%, 4/01/23 California, General Obligation Refunding Bonds, Series 2002: 8,450 5.000%, 2/01/12 No Opt. Call A 9,021,051 2,780 6.000%, 4/01/16 - AMBAC Insured No Opt. Call AAA 3,269,447 10 California, General Obligation Veterans Welfare Bonds, 12/06 at 102.00 AA- 10,276 Series 1997BJ, 5.500%, 12/01/18 (Alternative Minimum Tax) 14,300 California, General Obligation Veterans Welfare Bonds, 6/07 at 101.00 AAA 14,745,731 Series 2001BZ, 5.350%, 12/01/21 - MBIA Insured (Alternative Minimum Tax) 1,840 Compton Unified School District, Los Angeles County, 9/13 at 100.00 AAA 2,012,224 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 3,190,770 General Obligation Bonds, Series 2002, 5.000%, 8/01/23 - FGIC Insured 48 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) $ 2,500 Fullerton Joint Union High School District, Orange County, 8/12 at 100.00 Aaa $ 2,651,675 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 2,420,596 General Obligation Bonds, Series 2002, 5.125%, 8/01/22 - FGIC Insured 2,345 Los Angeles Community College District, Los Angeles County, 8/15 at 100.00 AAA 2,500,051 California, General Obligation Bonds, Series 2005A, 5.000%, 6/01/26 - FSA 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 4,094,063 7,200 5.000%, 7/01/22 - FSA Insured 7/13 at 100.00 AAA 7,637,328 3,145 Los Angeles Unified School District, California, General 7/15 at 100.00 AAA 3,351,343 Obligation Bonds, Series 2005A-1, 5.000%, 7/01/25 - FGIC Insured 1,525 Lucia Mar Unified School District, San Luis Obispo County, 8/14 at 100.00 Aaa 1,676,981 California, General Obligation Bonds, Series 2004A, 5.250%, 8/01/22 - FGIC Insured Oakland Unified School District, Alameda County, California, General Obligation Bonds, Series 2005: 780 5.000%, 8/01/25 - MBIA Insured 8/15 at 100.00 AAA 829,694 820 5.000%, 8/01/26 - MBIA Insured 8/15 at 100.00 AAA 871,586 870 Puerto Rico, General Obligation and Public Improvement Bonds, 7/11 at 100.00 AAA 921,721 Series 2001, 5.000%, 7/01/24 - FSA Insured Riverside Community College District, California, General Obligation Bonds, Series 2005: 2,675 5.000%, 8/01/21 - FSA Insured 8/15 at 100.00 AAA 2,882,152 5,000 5.000%, 8/01/24 - FSA Insured 8/15 at 100.00 AAA 5,342,650 10,810 San Diego Unified School District, San Diego County, California, 7/11 at 102.00 AAA 11,698,366 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, California, 7/12 at 101.00 AAA 4,377,920 General Obligation Bonds, Election of 1998, Series 2002D, 5.250%, 7/01/21 - FGIC Insured San Jose-Evergreen Community College District, Santa Clara County, California, General Obligation Bonds, Series 2005A: 605 5.000%, 9/01/25 - MBIA Insured 9/15 at 100.00 AAA 645,795 875 5.000%, 9/01/27 - MBIA Insured 9/15 at 100.00 AAA 931,175 1,000 Saugus Union School District, Los Angeles County, California, 8/12 at 100.00 AAA 1,062,010 General Obligation Bonds, Series 2002A, 5.000%, 8/01/24 - FGIC Insured 1,630 West Contra Costa Unified School District, Contra Costa County, 8/11 at 101.00 AAA 1,734,353 California, General Obligation Bonds, Series 2003C, 5.000%, 8/01/22 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 100,505 Total Tax Obligation/General 108,480,548 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 41.2% (27.4% OF TOTAL INVESTMENTS) 4,000 Beaumont Financing Authority, California, Local Agency 9/12 at 102.00 N/R 4,426,320 Revenue Bonds, Series 2002A, 6.750%, 9/01/25 7,135 Brentwood Infrastructure Financing Authority, Contra Costa 11/11 at 100.00 AAA 7,575,515 County, California, Capital Improvement Revenue Bonds, Series 2001, 5.000%, 11/01/25 - FSA Insured 8,210 California State Public Works Board, Lease Revenue Bonds, 12/13 at 100.00 A- 9,074,103 Department of Corrections, Series 2003C, 5.500%, 6/01/16 3,350 California State Public Works Board, Lease Revenue Bonds, 12/12 at 100.00 AAA 3,635,889 Department of General Services, Capital East End Project, Series 2002A, 5.250%, 12/01/17 - AMBAC Insured 4,000 California State Public Works Board, Lease Revenue Bonds, 3/12 at 100.00 AAA 4,167,280 Department of General Services, Series 2002B, 5.000%, 3/01/27 - AMBAC Insured 4,510 California State Public Works Board, Lease Revenue Bonds, 12/11 at 102.00 AAA 4,738,883 Department of Mental Health, Hospital Addition, Series 2001A, 5.000%, 12/01/26 - AMBAC Insured 5,350 California, Economic Recovery Revenue Bonds, 7/14 at 100.00 AA- 5,806,997 Series 2004A, 5.000%, 7/01/15 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 1,869,123 550 6.000%, 9/01/33 9/13 at 100.00 N/R 582,841 49 Nuveen California Dividend Advantage Municipal Fund 3 (NZH) (continued) Portfolio of INVESTMENTS February 28, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 1,810 Cerritos Public Financing Authority, California, Tax Allocation No Opt. Call AAA $ 1,979,217 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 1,519,339 Obligation Senior Lien Revenue Bonds, Series 1998A, 6.000%, 9/15/18 - AMBAC Insured 1,125 Fontana, California, Special Tax Bonds, Sierra Community 9/14 at 100.00 N/R 1,191,398 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 1,070,030 Tax Bonds, Amerige Heights, Series 2002, 6.100%, 9/01/22 550 Hesperia Community Redevelopment Agency, California, 9/15 at 100.00 AAA 587,532 Tax Allocation Bonds, Series 2005A, 5.000%, 9/01/20 - XLCA Insured 3,000 Lake Elsinore Public Finance Authority, California, Local 10/13 at 102.00 N/R 3,277,530 Agency Revenue Refunding Bonds, Series 2003H, 6.000%, 10/01/20 5,250 Lammersville School District, San Joaquin County, California, 9/12 at 101.00 N/R 5,653,830 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 2,218,140 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 2,422,464 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 1,608,300 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 5,661,313 Improvement Financing Project, Series 2002, 5.000%, 10/01/26 - MBIA Insured 3,075 Los Angeles County Metropolitan Transportation Authority, No Opt. Call AAA 3,404,855 California, Proposition C Second Senior Lien Sales Tax Revenue Refunding Bonds, Series 2003A, 5.250%, 7/01/13 - MBIA Insured 1,000 Monterey County, California, Certificates of Participation, 8/11 at 100.00 Aaa 1,075,830 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 1,761,263 California, Certificates of Participation, Series 2005, 5.000%, 3/01/26 - FSA Insured 3,000 Oakland Redevelopment Agency, California, Subordinate 3/13 at 100.00 AAA 3,318,000 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 4,799,562 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 2,050,640 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 11,756,298 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 3,355,007 Refunding Bonds, Merged Redevelopment Projects, Series 2001AD, 5.000%, 2/01/27 - MBIA Insured 625 Rialto Redevelopment Agency, California, Tax Allocation 9/15 at 100.00 AAA 650,675 Bonds, Merged Project Area, Series 2005A, 5.000%, 9/01/35 - XLCA Insured 1,310 Riverside County Public Financing Authority, California, Tax 10/15 at 100.00 AAA 1,364,142 Allocation Bonds, Multiple Projects, Series 2005A, 5.000%, 10/01/35 - XLCA Insured 1,700 Roseville, California, Special Tax Bonds, Community Facilities 9/09 at 103.00 N/R 1,792,973 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 1,234,214 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 15,160,191 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 9,074,436 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 1,677,047 Tax Bonds, Community Facilities District 99-1, Series 2003B, 6.000%, 9/01/24 50 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 8,710 South Orange County Public Financing Authority, California, 8/15 at 100.00 AAA $ 9,094,372 Special Tax Revenue Bonds, Ladera Ranch, Series 2005A, 5.000%, 8/15/32 - AMBAC Insured 2,810 West Patterson Financing Authority, California, Special Tax 9/13 at 103.00 N/R 3,173,726 Bonds, Community Facilities District 01-1, Series 2003B, 7.000%, 9/01/38 2,000 West Patterson Financing Authority, California, Special 9/13 at 102.00 N/R 2,118,060 Tax Bonds, Community Facilities District 01-1, Series 2004B, 6.000%, 9/01/39 1,375 West Patterson Financing Authority, California, Special 9/13 at 103.00 N/R 1,478,125 Tax Bonds, Community Facilities District 2001-1, Series 2004A, 6.125%, 9/01/39 2,500 Yucaipa-Calimesa Joint Unified School District, San Bernardino 10/11 at 100.00 AAA 2,594,250 County, California, General Obligation Refunding Bonds, Series 2001A, 5.000%, 10/01/26 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 140,675 Total Tax Obligation/Limited 149,999,710 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 10.0% (6.6% OF TOTAL INVESTMENTS) 11,750 Foothill/Eastern Transportation Corridor Agency, California, 1/14 at 101.00 BBB- 10,302,400 Toll Road Revenue Refunding Bonds, Series 1999, 0.000%, 1/15/28 3,000 Port of Oakland, California, Revenue Bonds, Series 2002M, 11/12 at 100.00 AAA 3,260,640 5.250%, 11/01/20 - FGIC Insured 1,500 Port of Oakland, California, Revenue Refunding Bonds, 11/07 at 102.00 AAA 1,583,970 Series 1997I, 5.600%, 11/01/19 - MBIA 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 4,412,907 10,625 5.125%, 5/01/18 - FGIC Insured 5/13 at 100.00 AAA 11,373,850 5,140 5.125%, 5/01/19 - FGIC Insured 5/13 at 100.00 AAA 5,495,637 ------------------------------------------------------------------------------------------------------------------------------------ 36,125 Total Transportation 36,429,404 ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 11.1% (7.4% OF TOTAL INVESTMENTS) (4) 11,240 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 Baa3 (4) 12,285,545 Settlement Asset-Backed Bonds, Merced County Tobacco Funding Corporation, Series 2002A, 5.500%, 6/01/33 (Pre-refunded 6/01/12) California Department of Water Resources, Power Supply Revenue Bonds, Series 2002A: 3,500 5.375%, 5/01/17 (Pre-refunded 5/01/12) - XLCA Insured 5/12 at 101.00 AAA 3,877,755 9,000 5.125%, 5/01/18 (Pre-refunded 5/01/12) 5/12 at 101.00 Aaa 9,847,620 5,500 Puerto Rico Highway and Transportation Authority, Highway 7/12 at 100.00 AAA 6,034,160 Revenue Bonds, Series 2002D, 5.375%, 7/01/36 (Pre-refunded 7/01/12) 780 Puerto Rico, General Obligation and Public Improvement Bonds, 7/11 at 100.00 AAA 835,536 Series 2001, 5.000%, 7/01/24 (Pre-refunded 7/01/11) - FSA Insured 1,600 San Marcos Public Facilities Authority, California, Special 9/07 at 102.00 N/R (4) 1,693,872 Tax Revenue Bonds, Community Facilities District 99-1, Series 2002, 6.300%, 9/01/20 (Pre-refunded 9/01/07) 1,595 Santa Clara Valley Transportation Authority, California, Sales 6/11 at 100.00 AAA 1,710,334 Tax Revenue Bonds, Series 2001A, 5.000%, 6/01/22 (Pre-refunded 6/01/11) - MBIA Insured 3,905 Southwestern Community College District, San Diego County, 8/14 at 100.00 AAA 4,278,943 California, General Obligation Bonds, Series 2004, 5.000%, 8/01/22 (Pre-refunded 8/01/14) - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 37,120 Total U.S. Guaranteed 40,563,765 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 9.1% (6.0% OF TOTAL INVESTMENTS) 15,000 California Pollution Control Financing Authority, Remarketed 4/11 at 102.00 AAA 16,086,447 Revenue Bonds, Pacific Gas and Electric Company, Series 1996A, 5.350%, 12/01/16 - MBIA Insured (Alternative Minimum Tax) 1,200 Los Angeles Department of Water and Power, California, 7/13 at 100.00 AAA 1,277,196 Power System Revenue Bonds, Series 2003A-2, 5.000%, 7/01/21 - MBIA Insured 1,285 Merced Irrigation District, California, Electric System Revenue 9/15 at 100.00 AAA 1,357,256 Bonds, Series 2005, 5.125%, 9/01/31 - XLCA Insured 5,000 Merced Irrigation District, California, Revenue Certificates 9/13 at 102.00 Baa3 5,283,600 of Participation, Electric System Project, Series 2003, 5.700%, 9/01/36 51 Nuveen California Dividend Advantage Municipal Fund 3 (NZH) (continued) Portfolio of INVESTMENTS February 28, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES (continued) $ 2,250 Salinas Valley Solid Waste Authority, California, Revenue 8/12 at 100.00 AAA $ 2,348,685 Bonds, Series 2002, 5.125%, 8/01/22 - AMBAC Insured (Alternative Minimum Tax) 6,085 Southern California Public Power Authority, Revenue Bonds, 7/13 at 100.00 AAA 6,651,453 Magnolia Power Project, Series 2003-1A, 5.250%, 7/01/16 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 30,820 Total Utilities 33,004,637 ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 13.3% (8.8% OF TOTAL INVESTMENTS) 1,070 Burbank, California, Wastewater System Revenue Bonds, 6/14 at 100.00 AAA 1,137,207 Series 2004A, 5.000%, 6/01/22 - AMBAC Insured 7,000 California Department of Water Resources, Water System 6/13 at 100.00 AAA 7,731,570 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 7,282,310 Water Revenue Certificates of Participation, Series 1999, 5.125%, 9/01/29 - MBIA Insured 2,000 El Dorado Irrigation District, California, Water and Sewer 3/14 at 100.00 AAA 2,128,140 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 1,071,890 Series 2001A, 6.250%, 12/01/32 1,000 San Buenaventura, California, Wastewater Revenue 3/14 at 100.00 AAA 1,054,970 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 2,658,975 6,260 5.000%, 8/01/24 - MBIA Insured 8/12 at 100.00 AAA 6,648,183 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 3,610,168 12,000 5.250%, 10/01/19 - MBIA Insured 4/13 at 100.00 AAA 13,068,480 1,955 Westlands Water District, California, Revenue Certificates 3/15 at 100.00 AAA 2,079,592 of Participation, Series 2005A, 5.000%, 9/01/23 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 45,100 Total Water and Sewer 48,471,485 ------------------------------------------------------------------------------------------------------------------------------------ $ 511,950 Total Long-Term Investments (cost $522,193,773) - 150.0% 546,220,510 =============----------------------------------------------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS - 0.5% (0.4% OF TOTAL INVESTMENTS) 1,000 California Department of Water Resources, Power Supply VMIG-1 1,000,000 Revenue Bonds, Variable Rate Demand Obligations, Series 2002C-7, 3.150%, 5/01/22 - FSA Insured (5) 1,000 Irvine Assessment District No. 97-17, California, Limited VMIG-1 1,000,000 Obligation Improvement Bonds, Variable Rate Demand Obligations, Series 1998, 2.900%, 9/02/23 (5) ------------------------------------------------------------------------------------------------------------------------------------ $ 2,000 Total Short-Term Investments (cost $2,000,000) 2,000,000 =============----------------------------------------------------------------------------------------------------------------------- Total Investments (cost $524,193,773) - 150.5% 548,220,510 -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 0.8% 3,107,017 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (51.3)% (187,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 364,327,527 ==================================================================================================================== (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings: Using the higher of Standard & Poor's or Moody's rating. Ratings below BBB by Standard & Poor's Group or Baa by Moody's Investor Service, Inc. are considered to be below investment grade. (4) Investment is backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. (5) Investment has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term investment. 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. N/R Investment is not rated. See accompanying notes to financial statements. 52 Nuveen Insured California Dividend Advantage Municipal Fund (NKL) Portfolio of INVESTMENTS February 28, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 2.3% (1.5% OF TOTAL INVESTMENTS) $ 4,500 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB $ 5,427,180 Tobacco Settlement Asset-Backed Revenue Bonds, Series 2003A-2, 7.900%, 6/01/42 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 8.6% (5.8% OF TOTAL INVESTMENTS) 1,675 California Educational Facilities Authority, Revenue Bonds, 10/12 at 100.00 A2 1,753,189 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 9,498,420 Series 2002A, 5.125%, 11/01/26 - AMBAC Insured 9,000 University of California, Revenue Bonds, Multiple Purpose 9/08 at 101.00 AA 9,299,430 Projects, Series 2000K, 5.300%, 9/01/30 ------------------------------------------------------------------------------------------------------------------------------------ 19,675 Total Education and Civic Organizations 20,551,039 ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 5.5% (3.7% OF TOTAL INVESTMENTS) 5,000 ABAG Finance Authority for Non-Profit Corporations, 4/12 at 100.00 A 5,360,650 California, Cal-Mortgage Insured Revenue Bonds, Sansum-Santa Barbara Medical Foundation Clinic, Series 2002A, 5.600%, 4/01/26 2,815 California Health Facilities Financing Authority, Revenue 8/13 at 100.00 AAA 2,975,511 Bonds, Lucile Salter Packard Children's 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 1,157,264 University of California - Davis Medical Center, Series 2004II-A, 5.000%, 11/01/21 - MBIA Insured 3,380 Rancho Mirage Joint Powers Financing Authority, California, 7/14 at 100.00 A3 3,648,811 Revenue Bonds, Eisenhower Medical Center, Series 2004, 5.875%, 7/01/26 ------------------------------------------------------------------------------------------------------------------------------------ 12,285 Total Health Care 13,142,236 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 1.2% (0.9% OF TOTAL INVESTMENTS) 1,000 California Statewide Community Development Authority, 8/12 at 100.00 A 1,061,230 Student Housing Revenue Bonds, EAH - Irvine East Campus Apartments, LLC Project, Series 2002A, 5.500%, 8/01/22 - ACA Insured 1,905 Los Angeles, California, GNMA Mortgage-Backed Securities 7/11 at 102.00 AAA 2,009,546 Program Multifamily Housing Revenue Bonds, Park Plaza West Senior Apartments, Series 2001B, 5.300%, 1/20/21 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 2,905 Total Housing/Multifamily 3,070,776 ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 1.3% (0.9% OF TOTAL INVESTMENTS) 3,000 California Pollution Control Financing Authority, Solid Waste 6/23 at 100.00 BBB+ 3,190,800 Disposal Revenue Bonds, Republic Services Inc., Series 2002C, 5.250%, 6/01/23 (Mandatory put 12/01/17) (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 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 3,157,770 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 5,242,450 Revenue Bonds, Jewish Home for the Aging, Series 2003, 5.000%, 11/15/18 ------------------------------------------------------------------------------------------------------------------------------------ 8,000 Total Long-Term Care 8,400,220 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 32.0% (21.6% OF TOTAL INVESTMENTS) 5,920 Cajon Valley Union School District, San Diego County, 8/10 at 102.00 AAA 6,206,350 California, General Obligation Bonds, Series 2002B, 5.125%, 8/01/32 - MBIA Insured 2,900 California, General Obligation Bonds, Series 2003, 5.000%, 2/01/21 8/13 at 100.00 A 3,055,092 9,000 California, General Obligation Refunding Bonds, Series 2002, 2/12 at 100.00 AAA 9,438,840 5.000%, 2/01/22 - MBIA Insured 53 Nuveen Insured California Dividend Advantage Municipal Fund (NKL) (continued) Portfolio of INVESTMENTS February 28, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) Compton Community College District, Los Angeles County, California, General Obligation Bonds, Series 2004A: $ 1,315 5.250%, 7/01/22 - MBIA Insured 7/14 at 100.00 AAA $ 1,445,224 2,560 5.250%, 7/01/23 - MBIA Insured 7/14 at 100.00 AAA 2,811,597 2,415 El Monte Union High School District, Los Angeles County, 6/13 at 100.00 AAA 2,529,254 California, General Obligation Bonds, Series 2003A, 5.000%, 6/01/28 - FSA Insured 10,000 Fremont Unified School District, Alameda County, California, 8/12 at 101.00 AAA 10,615,500 General Obligation Bonds, Series 2002A, 5.000%, 8/01/25 - FGIC Insured 1,520 Los Angeles Community College District, Los Angeles County, 8/15 at 100.00 AAA 1,620,502 California, General Obligation Bonds, Series 2005A, 5.000%, 6/01/26 - FSA Insured 5,000 Los Angeles Unified School District, California, General 7/12 at 100.00 AAA 5,262,000 Obligation Bonds, Series 2002E, 5.125%, 1/01/27 - MBIA Insured Los Angeles Unified School District, California, General Obligation Bonds, Series 2003A: 3,700 5.000%, 7/01/22 - FSA Insured 7/13 at 100.00 AAA 3,924,738 3,500 5.000%, 1/01/28 - MBIA Insured 7/13 at 100.00 AAA 3,700,060 1,500 Madera Unified School District, Madera County, California, 8/12 at 100.00 AAA 1,565,625 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 2,703,075 General Obligation Bonds, Series 2002, 5.250%, 8/01/21 - FGIC Insured Oakland Unified School District, Alameda County, California, General Obligation Bonds, Series 2005: 505 5.000%, 8/01/25 - MBIA Insured 8/15 at 100.00 AAA 537,174 530 5.000%, 8/01/26 - MBIA Insured 8/15 at 100.00 AAA 563,342 3,250 San Diego Unified School District, San Diego County, 7/11 at 102.00 AAA 3,517,085 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 1,247,000 California, General Obligation Bonds, Series 2005, 5.000%, 8/01/22 - FSA Insured San Jose-Evergreen Community College District, Santa Clara County, California, General Obligation Bonds, Series 2005A: 395 5.000%, 9/01/25 - MBIA Insured 9/15 at 100.00 AAA 421,635 575 5.000%, 9/01/27 - MBIA Insured 9/15 at 100.00 AAA 611,915 3,500 San Mateo County Community College District, California, 9/12 at 100.00 AAA 3,667,125 General Obligation Bonds, Series 2002A, 5.000%, 9/01/26 - FGIC Insured 10,000 Vista Unified School District, San Diego County, California, 8/12 at 100.00 AAA 10,635,900 General Obligation Bonds, Series 2002A, 5.000%, 8/01/23 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 71,745 Total Tax Obligation/General 76,079,033 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 41.9% (28.3% OF TOTAL INVESTMENTS) 1,450 Baldwin Park Public Financing Authority, California, Sales Tax 8/13 at 102.00 BBB 1,533,593 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 7,240,784 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 2,494,314 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 2,317,568 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, 11/15 at 100.00 AAA 3,246,320 Department of Health Services, Richmond Lab, Series 2005B, 5.000%, 11/01/30 - XLCA Insured 7,035 Corona-Norco Unified School District, Riverside County, 9/13 at 100.00 AAA 7,373,454 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 3,298,979 Revenue Bonds, Redevelopment Project, Series 2002A, 5.125%, 11/01/25 - MBIA Insured 54 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 8,720 El Monte, California, Senior Lien Certificates of Participation, 1/11 at 100.00 AAA $ 9,055,197 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 4,251,960 Revenue Bonds, Series 2004A, 5.000%, 9/01/21 - AMBAC Insured 355 Hesperia Community Redevelopment Agency, California, 9/15 at 100.00 AAA 379,225 Tax Allocation Bonds, Series 2005A, 5.000%, 9/01/20 - XLCA Insured 2,115 Inglewood Redevelopment Agency, California, Tax Allocation No Opt. Call AAA 2,386,883 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 3,671,850 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 3,616,648 Bonds, Redevelopment Project Area 1, Series 2002, 5.000%, 9/01/22 - AMBAC Insured 4,690 Los Angeles County Metropolitan Transportation Authority, 7/08 at 101.00 AAA 4,882,337 California, Proposition C Second Senior Lien Sales Tax Revenue Refunding Bonds, Series 1998A, 5.000%, 7/01/23 - AMBAC Insured 1,460 Los Angeles, California, Certificates of Participation, 6/13 at 100.00 AAA 1,517,042 Municipal Improvement Corporation, Series 2003AW, 5.000%, 6/01/33 - AMBAC Insured 7,000 Los Angeles, California, Certificates of Participation, 4/12 at 100.00 AAA 7,372,120 Series 2002, 5.200%, 4/01/27 - AMBAC Insured 8,470 Ontario Redevelopment Financing Authority, California, Lease 8/11 at 101.00 AAA 8,968,544 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 5,263,050 Revenue Refunding Bonds, Project Area 1, Series 2002, 5.000%, 4/01/25 - MBIA Insured 405 Rialto Redevelopment Agency, California, Tax Allocation 9/15 at 100.00 AAA 421,637 Bonds, Merged Project Area, Series 2005A, 5.000%, 9/01/35 - XLCA Insured 845 Riverside County Public Financing Authority, California, Tax 10/15 at 100.00 AAA 879,924 Allocation Bonds, Multiple Projects, Series 2005A, 5.000%, 10/01/35 - XLCA Insured 4,475 Riverside County, California, Asset Leasing Corporate Leasehold 6/12 at 101.00 AAA 4,738,667 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 3,349,879 Series 2001C, 5.250%, 2/01/31 - AMBAC Insured 3,730 San Diego Redevelopment Agency, California, Subordinate 9/09 at 101.00 Baa2 3,858,498 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 4,255,960 Refunding Bonds, Convention Center Project, Series 2001F, 5.000%, 9/01/19 - MBIA Insured 1,000 Shasta Joint Powers Financing Authority, California, Lease 4/13 at 100.00 AAA 1,073,610 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 2,266,099 Revenue Bonds, Redevelopment Project 1, Series 2002, 5.125%, 8/01/27 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 94,615 Total Tax Obligation/Limited 99,714,142 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 5.8% (3.9% OF TOTAL INVESTMENTS) 2,250 California Infrastructure Economic Development Bank, 7/13 at 100.00 AAA 2,348,843 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- 6,561,825 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 - FGIC Insured (Alternative Minimum Tax) 5/13 at 100.00 AAA 2,337,600 2,300 5.250%, 5/01/17 - FGIC Insured (Alternative Minimum Tax) 5/13 at 100.00 AAA 2,454,744 ------------------------------------------------------------------------------------------------------------------------------------ 14,235 Total Transportation 13,703,012 ------------------------------------------------------------------------------------------------------------------------------------ 55 Nuveen Insured California Dividend Advantage Municipal Fund (NKL) (continued) Portfolio of INVESTMENTS February 28, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 11.5% (7.7% OF TOTAL INVESTMENTS) (4) $ 6,000 California Department of Water Resources, Power Supply 5/12 at 101.00 Aaa $ 6,565,080 Revenue Bonds, Series 2002A, 5.125%, 5/01/18 (Pre-refunded 5/01/12) California Health Facilities Financing Authority, Revenue Bonds, Cedars-Sinai Medical Center, Series 1999A: 2,500 6.125%, 12/01/30 (Pre-refunded 12/01/09) 12/09 at 101.00 A3 (4) 2,761,900 1,000 6.250%, 12/01/34 (Pre-refunded 12/01/09) 12/09 at 101.00 A3 (4) 1,108,950 Fresno Unified School District, Fresno County, California, General Obligation Bonds, Series 2002B: 1,135 5.125%, 8/01/23 - FGIC Insured (ETM) 8/10 at 102.00 AAA 1,220,159 1,190 5.125%, 8/01/24 - FGIC Insured (ETM) 8/10 at 102.00 AAA 1,279,286 5.125%, 8/01/25 - FGIC Insured (ETM) 8/10 at 102.00 AAA 1,342,085 1,255 5.125%, 8/01/26 - FGIC Insured (ETM) 8/10 at 102.00 AAA 1,343,465 2,070 Fresno Unified School District, Fresno County, California, 8/10 at 102.00 AAA 2,215,914 General Obligation Bonds, Series 2002G, 5.125%, 8/01/26 - FSA Insured (ETM) 3,300 Peralta Community College District, Alameda County, California, 8/09 at 102.00 AAA 3,542,319 General Obligation Bonds, Election of 2000, Series 2001A, 5.000%, 8/01/31 (Pre-refunded 8/01/09) - FGIC Insured 2,980 Santa Clarita Community College District, Los Angeles 8/11 at 101.00 AAA 3,243,849 County, California, General Obligation Bonds, Series 2002, 5.125%, 8/01/26 (Pre-refunded 8/01/11) - FGIC Insured 2,460 Vacaville Unified School District, Solano County, California, 8/11 at 101.00 AAA 2,662,729 General Obligation Bonds, Series 2002, 5.000%, 8/01/26 (Pre-refunded 8/01/11) - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 25,135 Total U.S. Guaranteed 27,285,736 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 16.9% (11.4% OF TOTAL INVESTMENTS) 9,000 Anaheim Public Finance Authority, California, Revenue Bonds, 10/12 at 100.00 AAA 9,418,410 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 10,724,302 Revenue Bonds, Pacific Gas and Electric Company, Series 1996A, 5.350%, 12/01/16 - MBIA Insured (Alternative Minimum Tax) 3,000 Los Angeles Department of Water and Power, California, 7/11 at 100.00 AAA 3,206,850 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 824,856 Power System Revenue Bonds, Series 2003A-2, 5.000%, 7/01/21 - MBIA Insured 830 Merced Irrigation District, California, Electric System Revenue 9/15 at 100.00 AAA 876,671 Bonds, Series 2005, 5.125%, 9/01/31 - XLCA Insured 6,000 Northern California Power Agency, Revenue Refunding 7/08 at 101.00 AAA 6,258,180 Bonds, Hydroelectric Project 1, Series 1998A, 5.200%, 7/01/32 - MBIA Insured 3,000 Sacramento Municipal Utility District, California, Electric 8/11 at 100.00 AAA 3,148,290 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 5,843,377 Revenue Refunding Bonds, Transmission Project, Series 2002A, 4.750%, 7/01/19 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 38,235 Total Utilities 40,300,936 ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 16.6% (11.2% OF TOTAL INVESTMENTS) 3,000 California Department of Water Resources, Water System 12/12 at 100.00 AAA 3,228,480 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 6,340,828 Costa Counties, California, Water System Subordinated Revenue Bonds, Series 2001, 5.000%, 6/01/26 - MBIA Insured 9,000 Eastern Municipal Water District, California, Water and 7/11 at 100.00 AAA 9,286,470 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 4,788,630 California, Senior Revenue Bonds, Capital Projects, Series 2003A, 5.000%, 10/01/23 - FSA Insured 3,205 Manteca Financing Authority, California, Sewerage Revenue 12/13 at 100.00 Aaa 3,222,147 Bonds, Series 2003B, 5.000%, 12/01/33 - MBIA Insured 56 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER (continued) $ 9,185 Orange County Sanitation District, California, Certificates 8/13 at 100.00 AAA $ 9,557,084 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 1,451,773 1,415 5.500%, 12/01/21 - XLCA Insured 12/14 at 100.00 AAA 1,562,174 ------------------------------------------------------------------------------------------------------------------------------------ 37,720 Total Water and Sewer 39,437,586 ------------------------------------------------------------------------------------------------------------------------------------ $ 332,050 Total Long-Term Investments (cost $328,013,874) - 147.1% 350,302,696 =============----------------------------------------------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS - 1.1% (0.7% OF TOTAL INVESTMENTS) 1,500 California Department of Water Resources, Power Supply VMIG-1 1,500,000 Revenue Bonds, Variable Rate Demand Obligations, Series 2002C-7, 3.150%, 5/01/22 - FSA Insured (5) 1,000 Irvine Assessment District No. 97-17, California, Limited VMIG-1 1,000,000 Obligation Improvement Bonds, Variable Rate Demand Obligations, Series 1998, 2.900%, 9/02/23 (5) ------------------------------------------------------------------------------------------------------------------------------------ $ 2,500 Total Short-Term Investments (cost $2,500,000) 2,500,000 =============----------------------------------------------------------------------------------------------------------------------- Total Investments (cost $330,513,874) - 148.2% 352,802,696 -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.4% 3,245,027 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (49.6)% (118,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 238,047,723 ==================================================================================================================== 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 which ensures 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) 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) Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings: Using the higher of Standard & Poor's or Moody's rating. Ratings below BBB by Standard & Poor's Group or Baa by Moody's Investor Service, Inc. are considered to be below investment grade. (4) Investment is backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. (5) Investment has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term investment. 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. (ETM) Investment is escrowed to maturity. See accompanying notes to financial statements. 57 Nuveen Insured California Tax-Free Advantage Municipal Fund (NKX) Portfolio of INVESTMENTS February 28, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 2.2% (1.5% OF TOTAL INVESTMENTS) $ 1,625 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB $ 1,959,815 Tobacco Settlement Asset-Backed Revenue Bonds, Series 2003A-2, 7.900%, 6/01/42 ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 15.3% (10.2% OF TOTAL INVESTMENTS) 1,500 California Health Facilities Financing Authority, Revenue 11/08 at 101.00 AAA 1,557,090 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+ 1,917,648 Revenue Bonds, Kaiser Hospital Assistance LLC, Series 2001A, 5.550%, 8/01/31 2,000 California Statewide Community Development Authority, 6/13 at 100.00 AAA 2,143,660 Hospital Revenue Bonds, Monterey Peninsula Hospital, Series 2003B, 5.250%, 6/01/23 - FSA Insured 6,000 California Statewide Community Development Authority, No Opt. Call AAA 6,493,860 Revenue Bonds, Sherman Oaks Health System, Series 1998A, 5.000%, 8/01/22 - AMBAC Insured 1,260 Rancho Mirage Joint Powers Financing Authority, California, 7/14 at 100.00 A3 1,360,208 Revenue Bonds, Eisenhower Medical Center, Series 2004, 5.875%, 7/01/26 ------------------------------------------------------------------------------------------------------------------------------------ 12,560 Total Health Care 13,472,466 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 1.4% (0.9% OF TOTAL INVESTMENTS) 1,165 Poway, California, Housing Revenue Bonds, Revenue Bonds, 5/13 at 102.00 BBB+ 1,185,085 Poinsettia Mobile Home Park, Series 2003, 5.000%, 5/01/23 ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 5.7% (3.9% OF TOTAL INVESTMENTS) 1,000 ABAG Finance Authority for Non-Profit Corporations, 11/12 at 100.00 A 1,052,590 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, Cal-Mortgage 1/13 at 100.00 A 2,108,440 Insured 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 1,903,009 Revenue Bonds, Jewish Home for the Aging, Series 2003, 5.000%, 11/15/18 ------------------------------------------------------------------------------------------------------------------------------------ 4,815 Total Long-Term Care 5,064,039 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 48.4% (32.5% OF TOTAL INVESTMENTS) 1,000 Berryessa Union School District, Santa Clara County, 8/12 at 100.00 AAA 1,064,180 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 2,106,960 Counties, California, General Obligation Bonds, Series 2002A, 5.000%, 8/01/26 - MBIA Insured 500 California, General Obligation Bonds, Series 2004, 5.250%, 4/01/34 4/14 at 100.00 A 535,150 California, General Obligation Refunding Bonds, Series 2002: 1,500 5.000%, 2/01/12 No Opt. Call A 1,601,370 3,750 5.000%, 4/01/27 - AMBAC Insured 4/12 at 100.00 AAA 3,912,713 3,000 5.250%, 4/01/30 - XLCA Insured 4/12 at 100.00 AAA 3,210,570 450 Fremont Unified School District, Alameda County, California, 8/12 at 101.00 AAA 477,698 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 4,740,660 2,030 5.000%, 8/01/27 - FSA Insured 8/13 at 100.00 AAA 2,134,586 565 Los Angeles Community College District, Los Angeles County, 8/15 at 100.00 AAA 602,358 California, General Obligation Bonds, Series 2005A, 5.000%, 6/01/26 - FSA Insured 58 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) $ 10,500 Los Angeles Unified School District, California, General 7/13 at 100.00 AAA $ 11,137,767 Obligation Bonds, Series 2003A, 5.000%, 7/01/22 - FSA Insured 2,000 Los Angeles, California, General Obligation Bonds, 9/12 at 100.00 AAA 2,129,760 Series 2002A, 5.000%, 9/01/22 - MBIA Insured 1,000 Murrieta Valley Unified School District, Riverside County, 9/13 at 100.00 AAA 1,054,020 California, General Obligation Bonds, Series 2003A, 5.000%, 9/01/26 - FGIC Insured Oakland Unified School District, Alameda County, California, General Obligation Bonds, Series 2005: 190 5.000%, 8/01/25 - MBIA Insured 8/15 at 100.00 AAA 202,105 200 5.000%, 8/01/26 - MBIA Insured 8/15 at 100.00 AAA 212,582 3,000 San Diego Unified School District, California, General 7/10 at 100.00 AAA 3,186,570 Obligation Bonds, Election of 1998, Series 2000B, 5.125%, 7/01/22 - MBIA Insured San Jose-Evergreen Community College District, Santa Clara County, California, General Obligation Bonds, Series 2005A: 145 5.000%, 9/01/25 - MBIA Insured 9/15 at 100.00 AAA 154,777 215 5.000%, 9/01/27 - MBIA Insured 9/15 at 100.00 AAA 228,803 3,855 San Rafael City High School District, Marin County, 8/12 at 100.00 AAA 4,023,656 California, General Obligation Bonds, Series 2003A, 5.000%, 8/01/28 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 40,400 Total Tax Obligation/General 42,716,285 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 42.7% (28.7% OF TOTAL INVESTMENTS) 550 Baldwin Park Public Financing Authority, California, Sales Tax 8/13 at 102.00 BBB 581,708 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 2,197,206 Refunding Bonds, Golden State Redevelopment Project, Series 2003A, 5.250%, 12/01/22 - AMBAC Insured 2,000 California State Public Works Board, Lease Revenue Bonds, 12/13 at 100.00 A- 2,210,500 Department of Corrections, Series 2003C, 5.500%, 6/01/16 4,000 California State Public Works Board, Lease Revenue Bonds, 12/12 at 100.00 AAA 4,170,800 Department of General Services, Capital East End Project, Series 2002A, 5.000%, 12/01/27 - AMBAC Insured 1,610 Folsom Public Financing Authority, California, Special Tax 9/12 at 102.00 AAA 1,711,414 Revenue Bonds, Series 2004A, 5.000%, 9/01/21 - AMBAC Insured 130 Hesperia Community Redevelopment Agency, California, 9/15 at 100.00 AAA 138,871 Tax Allocation Bonds, Series 2005A, 5.000%, 9/01/20 - XLCA Insured 5,540 Irvine Public Facilities and Infrastructure Authority, California, 3/06 at 103.00 AAA 5,745,257 Assessment Revenue Bonds, Series 2003C, 5.000%, 9/02/21 - AMBAC Insured 1,770 Los Angeles Unified School District, California, Certificates 10/12 at 100.00 AAA 1,844,004 of Participation, Administration Building Project II, Series 2002C, 5.000%, 10/01/27 - AMBAC Insured 2,000 Los Angeles, California, Certificates of Participation, 6/13 at 100.00 AAA 2,078,140 Municipal Improvement Corporation, Series 2003AW, 5.000%, 6/01/33 - AMBAC Insured 1,500 Los Osos, California, Improvement Bonds, Community Services 9/10 at 103.00 AAA 1,556,985 Wastewater Assessment District 1, Series 2002, 5.000%, 9/02/33 - MBIA Insured 500 Paramount Redevelopment Agency, California, Tax Allocation 8/13 at 100.00 AAA 531,335 Bonds, Redevelopment Project Area 1, Series 2003, 5.000%, 8/01/19 - MBIA Insured 150 Rialto Redevelopment Agency, California, Tax Allocation Bonds, 9/15 at 100.00 AAA 156,162 Merged Project Area, Series 2005A, 5.000%, 9/01/35 - XLCA Insured 315 Riverside County Public Financing Authority, California, 10/15 at 100.00 AAA 328,019 Tax Allocation Bonds, Multiple Projects, Series 2005A, 5.000%, 10/01/35 - XLCA Insured 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 3,114,270 3,300 5.000%, 2/01/32 - AMBAC Insured 2/12 at 100.00 AAA 3,412,959 1,200 San Diego Redevelopment Agency, California, Subordinate 9/09 at 101.00 Baa2 1,241,340 Lien Tax Increment and Parking Revenue Bonds, Centre City Project, Series 2003B, 5.250%, 9/01/26 59 Nuveen Insured California Tax-Free Advantage Municipal Fund (NKX) (continued) Portfolio of INVESTMENTS February 28, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 2,770 San Jose Financing Authority, California, Lease Revenue 6/12 at 100.00 AAA $ 2,867,836 Refunding Bonds, Civic Center Project, Series 2002B, 5.000%, 6/01/32 - AMBAC Insured 1,220 San Jose Redevelopment Agency, California, Tax Allocation 8/10 at 101.00 AAA 1,262,566 Bonds, Merged Area Redevelopment Project, Series 2002, 5.000%, 8/01/32 - MBIA Insured 2,390 Solano County, California, Certificates of Participation, 11/12 at 100.00 AAA 2,581,224 Series 2002, 5.250%, 11/01/24 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 35,970 Total Tax Obligation/Limited 37,730,596 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 13.9% (9.4% OF TOTAL INVESTMENTS) 5,480 Bay Area Governments Association, California, BART SFO 8/12 at 100.00 AAA 5,713,503 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- 1,962,420 Toll Road Revenue Bonds, Series 1995A, 5.000%, 1/01/35 1,300 San Francisco Airports Commission, California, Revenue Bonds, 5/10 at 101.00 AAA 1,376,947 San Francisco International Airport, Second Series 2000, Issue 26B, 5.000%, 5/01/25 - FGIC Insured 3,135 San Francisco Airports Commission, California, Revenue Bonds, 5/08 at 101.00 AAA 3,256,889 San Francisco International Airport, Second Series Issue 16B, 5.000%, 5/01/24 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 11,915 Total Transportation 12,309,759 ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 1.4% (0.8% OF TOTAL INVESTMENTS) (4) 1,000 California Health Facilities Financing Authority, Revenue Bonds, 12/09 at 101.00 A3 (4) 1,108,950 Cedars-Sinai Medical Center, Series 1999A, 6.250%, 12/01/34 (Pre-refunded 12/01/09) ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 5.6% (3.8% OF TOTAL INVESTMENTS) 1,000 Anaheim Public Finance Authority, California, Second Lien 10/14 at 100.00 AAA 1,089,710 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 3,265,642 Power System Revenue Bonds, Series 2001A-1, 5.250%, 7/01/22 - FSA Insured 275 Los Angeles Department of Water and Power, California, 7/13 at 100.00 AAA 292,691 Power System Revenue Bonds, Series 2003A-2, 5.000%, 7/01/21 - MBIA Insured 310 Merced Irrigation District, California, Electric System Revenue 9/15 at 100.00 AAA 327,431 Bonds, Series 2005, 5.125%, 9/01/31 - XLCA Insured ------------------------------------------------------------------------------------------------------------------------------------ 4,640 Total Utilities 4,975,474 ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 11.2% (7.6% OF TOTAL INVESTMENTS) 1,185 Manteca Financing Authority, California, Sewerage Revenue 12/13 at 100.00 Aaa 1,191,340 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 3,192,540 2,500 5.000%, 8/01/23 - MBIA Insured 8/12 at 100.00 AAA 2,658,975 60 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER (continued) $ 1,180 South Feather Water and Power Agency, California, Water 4/13 at 100.00 BBB $ 1,219,247 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 1,664,352 Wastewater Revenue Bonds, Series 2001, 5.000%, 10/01/26 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 9,465 Total Water and Sewer 9,926,454 ------------------------------------------------------------------------------------------------------------------------------------ $ 123,555 Total Long-Term Investments (cost $124,286,983) - 147.8% 130,448,923 =============----------------------------------------------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS - 1.1% (0.7% OF TOTAL INVESTMENTS) 1,000 California Department of Water Resources, Power Supply VMIG-1 1,000,000 Revenue Bonds, Variable Rate Demand Obligations, Series 2002C-7, 3.150%, 5/01/22 - FSA Insured (5) ------------------------------------------------------------------------------------------------------------------------------------ $ 1,000 Total Short-Term Investments (cost $1,000,000) 1,000,000 =============----------------------------------------------------------------------------------------------------------------------- Total Investments (cost $125,286,983) - 148.9% 131,448,923 -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.1% 1,844,283 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (51.0)% (45,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 88,293,206 ==================================================================================================================== 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 which ensures 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) 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) Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings: Using the higher of Standard & Poor's or Moody's rating. Ratings below BBB by Standard & Poor's Group or Baa by Moody's Investor Service, Inc. are considered to be below investment grade. (4) Investment is backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. (5) Security has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term investment. 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. 61 Statement of ASSETS AND LIABILITIES February 28, 2006 (Unaudited) INSURED INSURED CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA PREMIUM DIVIDEND PREMIUM INCOME PREMIUM INCOME 2 INCOME ADVANTAGE (NPC) (NCL) (NCU) (NAC) ------------------------------------------------------------------------------------------------------------------------------------ ASSETS Investments, at value (cost $133,196,250, $267,686,107, $120,575,075 and $504,598,945, respectively) $144,447,731 $283,219,005 $126,880,312 $537,687,449 Cash -- -- -- -- Receivables: Interest 2,345,807 3,719,909 1,572,673 7,421,796 Investments sold -- 145,000 -- -- Other assets 9,021 31,505 6,638 43,182 ------------------------------------------------------------------------------------------------------------------------------------ Total assets 146,802,559 287,115,419 128,459,623 545,152,427 ------------------------------------------------------------------------------------------------------------------------------------ LIABILITIES Cash overdraft 335,885 388,295 325,685 1,986,727 Payable for investments purchased -- -- -- -- Accrued expenses: Management fees 71,301 138,104 62,533 175,155 Other 41,454 58,873 41,053 108,804 Preferred share dividends payable 21,150 45,926 3,415 49,766 ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities 469,790 631,198 432,686 2,320,452 ------------------------------------------------------------------------------------------------------------------------------------ Preferred shares, at liquidation value 45,000,000 95,000,000 43,000,000 175,000,000 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $101,332,769 $191,484,221 $ 85,026,937 $367,831,975 ==================================================================================================================================== Common shares outstanding 6,448,935 12,716,370 5,774,216 23,431,829 ==================================================================================================================================== Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) $ 15.71 $ 15.06 $ 14.73 $ 15.70 ==================================================================================================================================== NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: ------------------------------------------------------------------------------------------------------------------------------------ Common shares, $.01 par value per share $ 64,489 $ 127,164 $ 57,742 $ 234,318 Paid-in surplus 89,255,103 176,226,128 78,298,267 332,822,117 Undistributed (Over-distribution of) net investment income 710,010 514,136 286,025 1,334,791 Accumulated net realized gain (loss) from investments and derivative transactions 51,686 (916,105) 79,666 352,245 Net unrealized appreciation (depreciation ) of investments 11,251,481 15,532,898 6,305,237 33,088,504 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $101,332,769 $191,484,221 $ 85,026,937 $367,831,975 ==================================================================================================================================== 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. 62 INSURED INSURED CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA DIVIDEND DIVIDEND DIVIDEND TAX-FREE ADVANTAGE 2 ADVANTAGE 3 ADVANTAGE ADVANTAGE (NVX) (NZH) (NKL) (NKX) ------------------------------------------------------------------------------------------------------------------------------------ ASSETS Investments, at value (cost $315,951,642, $524,193,773, $330,513,874 and $125,286,983, respectively) $334,050,164 $548,220,510 $352,802,696 $131,448,923 Cash -- -- -- 463,193 Receivables: Interest 4,352,058 7,670,193 4,049,649 1,455,142 Investments sold -- -- -- -- Other assets 18,192 20,895 17,111 772 ------------------------------------------------------------------------------------------------------------------------------------ Total assets 338,420,414 555,911,598 356,869,456 133,368,030 ------------------------------------------------------------------------------------------------------------------------------------ LIABILITIES Cash overdraft 320,457 2,114,843 635,312 -- Payable for investments purchased -- 2,200,603 -- -- Accrued expenses: Management fees 84,766 135,380 89,007 32,396 Other 53,269 84,138 56,026 22,950 Preferred share dividends payable 14,288 49,107 41,388 19,478 ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities 472,780 4,584,071 821,733 74,824 ------------------------------------------------------------------------------------------------------------------------------------ Preferred shares, at liquidation value 110,000,000 187,000,000 118,000,000 45,000,000 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $227,947,634 $364,327,527 $238,047,723 $ 88,293,206 ==================================================================================================================================== 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) $ 15.41 $ 15.11 $ 15.60 $ 15.01 ==================================================================================================================================== 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 210,049,075 342,513,152 216,622,492 83,000,891 Undistributed (Over-distribution of) net investment income 665,037 1,209,445 514,606 (134,325) Accumulated net realized gain (loss) from investments and derivative transactions (1,012,907) (3,662,935) (1,530,795) (794,133) Net unrealized appreciation (depreciation) of investments 18,098,522 24,026,737 22,288,822 6,161,940 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $227,947,634 $364,327,527 $238,047,723 $ 88,293,206 ==================================================================================================================================== Authorized shares: Common Unlimited Unlimited Unlimited Unlimited Preferred Unlimited Unlimited Unlimited Unlimited ==================================================================================================================================== See accompanying notes to financial statements. 63 Statement of OPERATIONS Six Months Ended February 28, 2006 (Unaudited) INSURED INSURED CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA PREMIUM DIVIDEND PREMIUM INCOME PREMIUM INCOME 2 INCOME ADVANTAGE (NPC) (NCL) (NCU) (NAC) ------------------------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME $ 3,544,967 $6,843,302 $3,081,342 $13,403,800 ------------------------------------------------------------------------------------------------------------------------------------ EXPENSES Management fees 463,474 893,595 404,837 1,672,534 Preferred shares - auction fees 55,861 117,928 53,378 216,636 Preferred shares - dividend disbursing agent fees 4,959 9,918 4,959 9,918 Shareholders' servicing agent fees and expenses 5,387 8,155 3,898 2,948 Custodian's fees and expenses 17,749 40,281 18,103 71,294 Directors'/Trustees' fees and expenses 1,580 3,185 1,376 5,980 Professional fees 6,469 8,731 6,106 10,981 Shareholders' reports - printing and mailing expenses 6,028 17,274 5,577 22,635 Stock exchange listing fees 5,153 5,191 244 5,149 Investor relations expense 8,969 11,278 7,881 19,738 Other expenses 7,385 12,263 7,484 13,250 ------------------------------------------------------------------------------------------------------------------------------------ Total expenses before custodian fee credit and expense reimbursement 583,014 1,127,799 513,843 2,051,063 Custodian fee credit (6,573) (4,618) (5,946) (3,653) Expense reimbursement -- -- -- (537,475) ------------------------------------------------------------------------------------------------------------------------------------ Net expenses 576,441 1,123,181 507,897 1,509,935 ------------------------------------------------------------------------------------------------------------------------------------ Net investment income 2,968,526 5,720,121 2,573,445 11,893,865 ------------------------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) from investments 51,642 454,270 161,291 743,048 Net realized gain (loss) from forward swaps -- -- -- -- Change in net unrealized appreciation (depreciation) of investments (1,914,472) (3,443,641) (1,567,253) (5,217,669) Change in net unrealized appreciation (depreciation) of forward swaps -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Net realized and unrealized gain (loss) (1,862,830) (2,989,371) (1,405,962) (4,474,621) ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From net investment income (482,616) (1,105,678) (522,487) (2,167,518) From accumulated net realized gains from investments (120,330) -- (11,180) (111,335) ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Preferred shareholders (602,946) (1,105,678) (533,667) (2,278,853) ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations $ 502,750 $1,625,072 $ 633,816 $ 5,140,391 ==================================================================================================================================== See accompanying notes to financial statements. 64 INSURED INSURED CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA DIVIDEND DIVIDEND DIVIDEND TAX-FREE ADVANTAGE 2 ADVANTAGE 3 ADVANTAGE ADVANTAGE (NVX) (NZH) (NKL) (NKX) ------------------------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME $7,998,547 $13,001,497 $8,527,683 $3,116,817 ------------------------------------------------------------------------------------------------------------------------------------ EXPENSES Management fees 1,049,622 1,691,447 1,102,562 419,379 Preferred shares - auction fees 136,171 232,132 146,074 55,861 Preferred shares - dividend disbursing agent fees 9,918 9,918 9,918 4,959 Shareholders' servicing agent fees and expenses 1,340 2,223 1,342 626 Custodian's fees and expenses 44,774 63,220 43,671 17,974 Directors'/Trustees' fees and expenses 3,696 6,164 4,031 1,391 Professional fees 9,600 12,866 9,795 6,281 Shareholders' reports - printing and mailing expenses 17,485 24,394 17,814 7,136 Stock exchange listing fees 624 1,018 644 248 Investor relations expense 13,071 19,901 13,636 7,752 Other expenses 10,943 14,478 10,228 7,594 ------------------------------------------------------------------------------------------------------------------------------------ Total expenses before custodian fee credit and expense reimbursement 1,297,244 2,077,761 1,359,715 529,201 Custodian fee credit (4,664) (10,471) (2,603) (4,556) Expense reimbursement (500,928) (815,635) (526,766) (210,021) ------------------------------------------------------------------------------------------------------------------------------------ Net expenses 791,652 1,251,655 830,346 314,624 ------------------------------------------------------------------------------------------------------------------------------------ Net investment income 7,206,895 11,749,842 7,697,337 2,802,193 ------------------------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) from investments 82,574 592,560 176,495 98,766 Net realized gain (loss) from forward swaps -- -- 772,782 297,454 Change in net unrealized appreciation (depreciation) of investments (2,661,990) (4,457,223) (3,961,934) (1,491,009) Change in net unrealized appreciation (depreciation) of forward swaps -- -- 191,673 72,274 ------------------------------------------------------------------------------------------------------------------------------------ Net realized and unrealized gain (loss) (2,579,416) (3,864,663) (2,820,984) (1,022,515) ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From net investment income (1,386,318) (2,402,581) (1,490,504) (534,410) From accumulated net realized gains from investments -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Preferred shareholders (1,386,318) (2,402,581) (1,490,504) (534,410) ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations $3,241,161 $ 5,482,598 $3,385,849 $1,245,268 ==================================================================================================================================== See accompanying notes to financial statements. 65 Statement of CHANGES IN NET ASSETS (Unaudited) INSURED CALIFORNIA INSURED CALIFORNIA CALIFORNIA PREMIUM INCOME (NPC) PREMIUM INCOME 2 (NCL) PREMIUM INCOME (NCU) ------------------------------- ------------------------------- ------------------------------- SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED ENDED 2/28/06 8/31/05 ENDED 2/28/06 8/31/05 ENDED 2/28/06 8/31/05 ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 2,968,526 $ 6,103,373 $ 5,720,121 $ 11,662,340 $2,573,445 $ 5,201,876 Net realized gain (loss) from investments 51,642 1,025,239 454,270 572,385 161,291 986,152 Net realized gain (loss) from forward swaps -- -- -- -- -- -- Change in net unrealized appreciation (depreciation) of investments (1,914,472) 347,962 (3,443,641) 3,008,579 (1,567,253) 2,456,342 Change in net unrealized appreciation (depreciation) of forward swaps -- -- -- -- -- -- Distributions to Preferred Shareholders: From net investment income (482,616) (659,626) (1,105,678) (1,431,484) (522,487) (676,918) From accumulated net realized gains from investments (120,330) (53,379) -- -- (11,180) -- ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations 502,750 6,763,569 1,625,072 13,811,820 633,816 7,967,452 ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (2,798,194) (5,939,147) (5,035,683) (11,212,178) (2,321,235) (4,954,280) From accumulated net realized gains (881,569) (1,006,068) -- -- (70,445) -- ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (3,679,763) (6,945,215) (5,035,683) (11,212,178) (2,391,680) (4,954,280) ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Net proceeds from Common shares issued to shareholders due to reinvestment of distributions -- 73,727 -- 260,359 -- -- Preferred shares offering costs adjustments -- -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from capital share transactions -- 73,727 -- 260,359 -- -- ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares (3,177,013) (107,919) (3,410,611) 2,860,001 (1,757,864) 3,013,172 Net assets applicable to Common shares at the beginning of period 104,509,782 104,617,701 194,894,832 192,034,831 86,784,801 83,771,629 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of period $101,332,769 $104,509,782 $191,484,221 $194,894,832 $85,026,937 $86,784,801 ==================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of period $ 710,010 $ 1,022,294 $ 514,136 $ 935,376 $ 286,025 $ 556,302 ==================================================================================================================================== See accompanying notes to financial statements. 66 CALIFORNIA CALIFORNIA CALIFORNIA DIVIDEND ADVANTAGE (NAC) DIVIDEND ADVANTAGE 2 (NVX) DIVIDEND ADVANTAGE 3 (NZH) ------------------------------- ------------------------------- ------------------------------- SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED ENDED 2/28/06 8/31/05 ENDED 2/28/06 8/31/05 ENDED 2/28/06 8/31/05 ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 11,893,865 $ 24,302,547 $ 7,206,895 $ 14,459,716 $ 11,749,842 $ 23,508,682 Net realized gain (loss) from investments 743,048 480,737 82,574 383,423 592,560 462,942 Net realized gain (loss) from forward swaps -- -- -- -- -- -- Change in net unrealized appreciation (depreciation) of investments (5,217,669) 11,381,369 (2,661,990) 10,159,524 (4,457,223) 15,832,228 Change in net unrealized appreciation (depreciation) of forward swaps -- -- -- -- -- -- Distributions to Preferred Shareholders: From net investment income (2,167,518) (2,855,101) (1,386,318) (1,768,569) (2,402,581) (3,098,457) From accumulated net realized gains from investments (111,335) (64,137) -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations 5,140,391 33,245,415 3,241,161 23,234,094 5,482,598 36,705,395 ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (11,032,910) (23,037,818) (6,433,938) (13,489,083) (10,416,743) (20,833,488) From accumulated net realized gains (782,285) (1,086,300) -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (11,815,195) (24,124,118) (6,433,938) (13,489,083) (10,416,743) (20,833,488) ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Net proceeds from Common shares issued to shareholders due to reinvestment of distributions 242,036 77,239 -- -- -- -- Preferred shares offering costs adjustments -- -- -- -- -- 29,546 ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from capital share transactions 242,036 77,239 -- -- -- 29,546 ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares (6,432,768) 9,198,536 (3,192,777) 9,745,011 (4,934,145) 15,901,453 Net assets applicable to Common shares at the beginning of period 374,264,743 365,066,207 231,140,411 221,395,400 369,261,672 353,360,219 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of period $367,831,975 $374,264,743 $227,947,634 $231,140,411 $364,327,527 $369,261,672 ==================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of period $ 1,334,791 $ 2,641,354 $ 665,037 $ 1,278,398 $ 1,209,445 $ 2,278,927 ==================================================================================================================================== See accompanying notes to financial statements. 67 Statement of CHANGES IN NET ASSETS (Unaudited) (continued) INSURED CALIFORNIA INSURED CALIFORNIA DIVIDEND ADVANTAGE (NKL) TAX-FREE ADVANTAGE (NKX) -------------------------------- ----------------------------- SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED ENDED 2/28/06 8/31/05 ENDED 2/28/06 8/31/05 ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 7,697,337 $ 15,469,138 $ 2,802,193 $ 5,637,385 Net realized gain (loss) from investments 176,495 750,281 98,766 161,272 Net realized gain (loss) from forward swaps 772,782 (2,892,459) 297,454 (1,073,407) Change in net unrealized appreciation (depreciation) of investments (3,961,934) 9,357,072 (1,491,009) 4,006,973 Change in net unrealized appreciation (depreciation) of forward swaps 191,673 809,703 72,274 288,851 Distributions to Preferred Shareholders: From net investment income (1,490,504) (1,886,679) (534,410) (753,416) From accumulated net realized gains from investments -- (45,704) -- -- ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations 3,385,849 21,561,352 1,245,268 8,267,658 ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (6,592,217) (13,733,781) (2,223,887) (5,003,747) From accumulated net realized gains -- (759,922) -- -- ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (6,592,217) (14,493,703) (2,223,887) (5,003,747) ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Net proceeds from Common shares issued to shareholders due to reinvestment of distributions -- -- -- -- Preferred shares offering costs adjustments -- (54) -- -- ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from capital share transactions -- (54) -- -- ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares (3,206,368) 7,067,595 (978,619) 3,263,911 Net assets applicable to Common shares at the beginning of period 241,254,091 234,186,496 89,271,825 86,007,914 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of period $238,047,723 $241,254,091 $88,293,206 $89,271,825 ==================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of period $ 514,606 $ 899,990 $ (134,325) $ (178,221) ==================================================================================================================================== See accompanying notes to financial statements. 68 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 or certain U.S. territories. The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with U.S. generally accepted accounting principles. Investment Valuation The prices of municipal bonds in each Fund's investment portfolio are provided by a pricing service approved by the Fund's Board of Directors/Trustees. When market 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 municipal bond or derivative investment, each Fund may use a market price or fair market value quote provided by a major broker/dealer in such investments. If it is determined that the market price or fair market value 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. Investment Transactions Investment transactions are recorded on a trade date basis. Realized gains and losses from transactions are determined on the specific identification method. Investments purchased on a when-issued or delayed delivery basis may have extended settlement periods. Any investments so purchased are subject to market fluctuation during this period. The Funds have instructed the custodian to segregate assets with a current value at least equal to the amount of the when-issued and delayed delivery purchase commitments. At February 28, 2006, there were no such outstanding purchase commitments in any of the Funds. Investment Income Interest income, which includes the amortization of premiums and accretion of discounts for financial reporting purposes, is recorded on an accrual basis. Investment income also includes paydown gains and losses, if any. Income Taxes Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to distribute substantially all 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. 69 Notes to FINANCIAL STATEMENTS (Unaudited) (continued) 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 paid by the Funds on each Series is determined every seven days, pursuant to a dutch auction process overseen by the auction agent, and is payable at the end of each rate period. 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 only 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 attributable 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 attributable 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) 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. 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 70 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 are authorized to 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 accruals for which would begin at a specified date in the future (the "effective date"). The amount of the payment obligation is based on the notional amount of the forward swap contract, and would increase or decrease in value based primarily on the extent to which long-term interest rates for bonds having a maturity of the swaps' termination date were to increase or decrease. 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 ordinarily does not involve the delivery of securities or other underlying assets or principal, but rather is settled in cash on a net basis. Each Fund intends, but is not obligated to, terminate its forward swaps before the effective date. Accordingly, the risk of loss with respect to the swap counterparty on such transactions is limited to the credit risk associated with a counterparty failing to honor its commitment to pay any realized gain to the Fund upon termination. To 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 predetermined threshold amount. At February 28, 2006, the Funds did not have any forward swap contracts outstanding. Custodian Fee Credit Each Fund has an arrangement with the custodian bank whereby certain custodian fees and expenses are reduced by credits earned on each Fund's cash on deposit with the bank. Such deposit arrangements are an alternative to overnight investments. Indemnifications Under the Funds' organizational documents, their Officers and Directors/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. 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 2/28/06 8/31/05 2/28/06 8/31/05 2/28/06 8/31/05 ------------------------------------------------------------------------------------------------------------ Common shares issued to shareholders due to reinvestment of distributions -- 4,473 -- 16,994 -- -- ============================================================================================================ 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 2/28/06 8/31/05 2/28/06 8/31/05 2/28/06 8/31/05 ------------------------------------------------------------------------------------------------------------ Common shares issued to shareholders due to reinvestment of distributions 14,967 4,849 -- -- -- -- ============================================================================================================ 71 Notes to FINANCIAL STATEMENTS (Unaudited) (continued) INSURED INSURED CALIFORNIA DIVIDEND CALIFORNIA TAX-FREE ADVANTAGE (NKL) ADVANTAGE (NKX) ------------------------ ------------------------ SIX MONTHS SIX MONTHS ENDED YEAR ENDED ENDED YEAR ENDED 2/28/06 8/31/05 2/28/06 8/31/05 ------------------------------------------------------------------------------------------------------------ Common shares issued to shareholders due to reinvestment of distributions -- -- -- -- ============================================================================================================ 3. INVESTMENT TRANSACTIONS Purchases and sales (including maturities but excluding short-term investments and derivative transactions) during the six months ended February 28, 2006, were as follows: INSURED INSURED CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA PREMIUM PREMIUM PREMIUM DIVIDEND INCOME INCOME 2 INCOME ADVANTAGE (NPC) (NCL) (NCU) (NAC) --------------------------------------------------------------------------------------------------------- Purchases $5,876,461 $12,448,606 $5,077,166 $16,821,216 Sales and maturities 3,725,630 14,427,924 5,037,763 18,391,830 ========================================================================================================= INSURED INSURED CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA DIVIDEND DIVIDEND DIVIDEND TAX-FREE ADVANTAGE 2 ADVANTAGE 3 ADVANTAGE ADVANTAGE (NVX) (NZH) (NKL) (NKX) --------------------------------------------------------------------------------------------------------- Purchases $4,161,839 $15,250,205 $1,454,258 $ 543,409 Sales and maturities 6,243,429 16,447,501 3,586,739 2,352,736 ========================================================================================================= 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, timing differences in recognizing taxable market discount and timing differences in recognizing certain gains and losses on investment transactions. At February 28, 2006, 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 $133,102,223 $267,537,327 $120,513,344 $504,392,038 ========================================================================================================= INSURED INSURED CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA DIVIDEND DIVIDEND DIVIDEND TAX-FREE ADVANTAGE 2 ADVANTAGE 3 ADVANTAGE ADVANTAGE (NVX) (NZH) (NKL) (NKX) --------------------------------------------------------------------------------------------------------- Cost of investments $315,938,931 $524,183,125 $332,569,428 $126,251,144 ========================================================================================================= 72 Gross unrealized appreciation and gross unrealized depreciation of investments at February 28, 2006, 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 $11,352,111 $15,794,302 $6,388,739 $33,331,484 Depreciation (6,603) (112,624) (21,771) (36,073) --------------------------------------------------------------------------------------------------------- Net unrealized appreciation (depreciation) of investments $11,345,508 $15,681,678 $6,366,968 $33,295,411 ========================================================================================================= INSURED INSURED CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA DIVIDEND DIVIDEND DIVIDEND TAX-FREE ADVANTAGE 2 ADVANTAGE 3 ADVANTAGE ADVANTAGE (NVX) (NZH) (NKL) (NKX) --------------------------------------------------------------------------------------------------------- Gross unrealized: Appreciation $18,294,414 $24,492,695 $22,461,648 $6,174,634 Depreciation (183,181) (455,310) (2,228,380) (976,855) --------------------------------------------------------------------------------------------------------- Net unrealized appreciation (depreciation) of investments $18,111,233 $24,037,385 $20,233,268 $5,197,779 ========================================================================================================= The tax components of undistributed net investment income and net realized gains at August 31, 2005, the Funds' last tax 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 * $1,335,929 $1,691,142 $907,928 $4,426,425 Undistributed net ordinary income ** 79,252 3,248 -- -- Undistributed net long-term capital gains 1,001,943 -- -- 502,817 ========================================================================================================= 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 * $2,408,781 $4,056,605 $1,872,014 $221,141 Undistributed net ordinary income ** -- -- -- -- Undistributed net long-term capital gains -- -- -- -- ========================================================================================================= * Undistributed net tax-exempt income (on a tax basis) has not been reduced for the dividend declared on August 1, 2005, paid on September 1, 2005. ** 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 tax year ended August 31, 2005, the Funds' last tax 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 $6,520,209 $12,725,281 $5,644,396 $25,851,246 Distributions from net ordinary income ** 377,496 -- -- -- Distributions from net long-term capital gains 785,476 -- -- 1,150,437 ========================================================================================================= 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 $15,245,298 $23,895,351 $15,677,229 $5,801,023 Distributions from net ordinary income ** -- -- 116,229 -- Distributions from net long-term capital gains -- -- 689,397 -- ========================================================================================================= ** Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. 73 Notes to FINANCIAL STATEMENTS (Unaudited) (continued) At August 31, 2005, the Funds' last tax 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 PREMIUM DIVIDEND DIVIDEND TAX-FREE INCOME 2 ADVANTAGE 2 ADVANTAGE 3 ADVANTAGE (NCL) (NVX) (NZH) (NKX) -------------------------------------------------------------------------------- Expiration year: 2009 $930,352 $ -- $ -- $ -- 2010 440,510 -- -- -- 2011 -- -- 3,931,655 216,849 2012 -- 1,095,481 323,840 -- -------------------------------------------------------------------------------- Total $1,370,862 $1,095,481 $4,255,495 $216,849 ================================================================================ Insured California Dividend Advantage (NKL) elected to defer net realized losses from investments incurred from November 1, 2004 through August 31, 2005 ("post-October losses") in accordance with Federal income tax regulations. Post-October losses of $259,334 were treated as having arisen on the first day of the current fiscal year. 5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES Each Fund's management fee is separated into two components - a complex-level component, based on the aggregate amount of all fund assets managed by Nuveen Asset Management (the "Adviser"), a wholly owned subsidary of Nuveen Investments, Inc., 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. The annual fund-level fee, payable monthly, for each Fund is based upon the average daily net assets (including net assets attributable to Preferred shares) of each Fund as follows: INSURED CALIFORNIA PREMIUM INCOME (NPC) AVERAGE DAILY NET ASSETS INSURED CALIFORNIA PREMIUM INCOME 2 (NCL) (INCLUDING 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 ================================================================================ CALIFORNIA DIVIDEND ADVANTAGE (NAC) CALIFORNIA DIVIDEND ADVANTAGE 2 (NVX) CALIFORNIA DIVIDEND ADVANTAGE 3 (NZH) AVERAGE DAILY NET ASSETS INSURED CALIFORNIA DIVIDEND ADVANTAGE (NKL) (INCLUDING 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 ================================================================================ 74 The annual complex-level fee, payable monthly, which is additive to the fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the aggregate amount of total fund assets managed as stated in the table below. As of February 28, 2006, the complex-level fee rate was .1886%. 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. 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. 75 Notes to FINANCIAL STATEMENTS (Unaudited) (continued) 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. 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. 76 6. SUBSEQUENT EVENT - DISTRIBUTIONS TO COMMON SHAREHOLDERS The Funds declared Common share dividend distributions from their tax-exempt net investment income which were paid on April 3, 2006, to shareholders of record on March 15, 2006, as follows: INSURED INSURED CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA PREMIUM PREMIUM PREMIUM DIVIDEND INCOME INCOME 2 INCOME ADVANTAGE (NPC) (NCL) (NCU) (NAC) -------------------------------------------------------------------------------- Dividend per share $.0670 $.0625 $.0635 $.0745 ================================================================================ INSURED INSURED CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA DIVIDEND DIVIDEND DIVIDEND TAX-FREE ADVANTAGE 2 ADVANTAGE 3 ADVANTAGE ADVANTAGE (NVX) (NZH) (NKL) (NKX) -------------------------------------------------------------------------------- Dividend per share $.0685 $.0680 $.0720 $.0630 ================================================================================ 77 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: 2006(a) $16.21 $ .46 $(.30) $(.07) $(.02) $ .07 $(.43) $(.14) $ (.57) 2005 16.23 .95 .22 (.10) (.01) 1.06 (.92) (.16) (1.08) 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) INSURED CALIFORNIA PREMIUM INCOME 2 (NCL) ------------------------------------------------------------------------------------------------------------------------------- Year Ended 8/31: 2006(a) 15.33 .45 (.23) (.09) -- .13 (.40) -- (.40) 2005 15.12 .91 .29 (.11) -- 1.09 (.88) -- (.88) 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) CALIFORNIA PREMIUM INCOME (NCU) ------------------------------------------------------------------------------------------------------------------------------- Year Ended 8/31: 2006(a) 15.03 .45 (.25) (.09) -- .11 (.40) (.01) (.41) 2005 14.51 .90 .60 (.12) -- 1.38 (.86) -- (.86) 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) =============================================================================================================================== 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: 2006(a) $ -- $15.71 $16.04 4.69% .49% 2005 -- 16.21 15.90 7.58 6.74 2004 -- 16.23 15.81 11.80 10.64 2003 -- 15.59 15.07 1.55 2.82 2002 -- 16.17 15.85 6.73 6.47 2001 -- 16.04 15.69 14.12 12.43 INSURED CALIFORNIA PREMIUM INCOME 2 (NCL) --------------------------------------------------------------------------------------- Year Ended 8/31: 2006(a) -- 15.06 15.09 3.01 .87 2005 -- 15.33 15.05 5.10 7.42 2004 -- 15.12 15.18 12.71 10.02 2003 -- 14.60 14.32 2.69 2.71 2002 -- 15.08 14.80 5.57 6.29 2001 -- 15.01 14.83 11.99 12.45 CALIFORNIA PREMIUM INCOME (NCU) --------------------------------------------------------------------------------------- Year Ended 8/31: 2006(a) -- 14.73 14.15 1.43 .81 2005 -- 15.03 14.37 11.76 9.75 2004 -- 14.51 13.67 12.04 12.94 2003 -- 13.66 13.02 (.91) .69 2002 -- 14.42 14.00 4.84 7.48 2001 -- 14.22 14.17 12.84 12.92 ======================================================================================= 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: 2006(a) $101,333 1.16%* 5.88%* 1.14%* 5.90%* 3% 2005 104,510 1.14 5.85 1.13 5.86 9 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 INSURED CALIFORNIA PREMIUM INCOME 2 (NCL) -------------------------------------------------------------------------------------------------------------------------- Year Ended 8/31: 2006(a) 191,484 1.19* 6.05* 1.19* 6.05* 4 2005 194,895 1.17 6.03 1.17 6.03 7 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 CALIFORNIA PREMIUM INCOME (NCU) -------------------------------------------------------------------------------------------------------------------------- Year Ended 8/31: 2006(a) 85,027 1.22* 6.11* 1.21* 6.13* 4 2005 86,785 1.21 6.08 1.20 6.09 13 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 ========================================================================================================================== 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: 2006(a) $45,000 $25,000 $81,296 2005 45,000 25,000 83,061 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 INSURED CALIFORNIA PREMIUM INCOME 2 (NCL) --------------------------------------------------------------------- Year Ended 8/31: 2006(a) 95,000 25,000 75,391 2005 95,000 25,000 76,288 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 CALIFORNIA PREMIUM INCOME (NCU) --------------------------------------------------------------------- Year Ended 8/31: 2006(a) 43,000 25,000 74,434 2005 43,000 25,000 75,456 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 ===================================================================== * 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, 2006. See accompanying notes to financial statements. 78-79 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: 2006(e) $15.98 $ .51 $(.20) $(.09) $ -- $ .22 $(.47) $(.03) $ (.50) 2005 15.59 1.04 .50 (.12) -- 1.42 (.98) (.05) (1.03) 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) CALIFORNIA DIVIDEND ADVANTAGE 2 (NVX) ------------------------------------------------------------------------------------------------------------------------------- Year Ended 8/31: 2006(e) 15.63 .49 (.18) (.09) -- .22 (.44) -- (.44) 2005 14.97 .98 .71 (.12) -- 1.57 (.91) -- (.91) 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: 2006(e) 15.31 .49 (.16) (.10) -- .23 (.43) -- (.43) 2005 14.65 .97 .68 (.13) -- 1.52 (.86) -- (.86) 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: 2006(e) 15.81 .50 (.18) (.10) -- .22 (.43) -- (.43) 2005 15.35 1.01 .52 (.12) -- 1.41 (.90) (.05) (.95) 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: 2006(e) 15.17 .48 (.17) (.09) -- .22 (.38) -- (.38) 2005 14.62 .96 .57 (.13) -- 1.40 (.85) -- (.85) 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: 2006(e) $ -- $15.70 $16.01 2.85% 1.46% 2005 -- 15.98 16.07 14.62 9.41 2004 -- 15.59 15.00 12.07 12.11 2003 -- 14.82 14.30 4.79 3.37 2002 -- 15.24 14.55 3.67 6.75 2001 -- 15.13 14.89 15.06 15.85 CALIFORNIA DIVIDEND ADVANTAGE 2 (NVX) ------------------------------------------------------------------------------------------- Year Ended 8/31: 2006(e) -- 15.41 14.92 1.17 1.43 2005 -- 15.63 15.19 14.98 10.80 2004 -- 14.97 14.08 13.60 12.11 2003 -- 14.18 13.24 (.95) 2.16 2002 -- 14.79 14.28 (.27) 3.90 2001(a) (.12) 15.11 15.21 3.40 7.55 CALIFORNIA DIVIDEND ADVANTAGE 3 (NZH) ------------------------------------------------------------------------------------------- Year Ended 8/31: 2006(e) -- 15.11 14.64 4.14 1.58 2005 -- 15.31 14.49 15.75 10.69 2004 -- 14.65 13.33 11.97 13.36 2003 .01 13.72 12.71 (3.20) 1.68 2002(b) (.12) 14.33 14.00 (1.68) 5.32 INSURED CALIFORNIA DIVIDEND ADVANTAGE (NKL) ------------------------------------------------------------------------------------------- Year Ended 8/31: 2006(e) -- 15.60 15.25 4.65 1.46 2005 -- 15.81 15.00 9.00 9.46 2004 -- 15.35 14.67 12.54 12.53 2003 -- 14.60 14.00 (.35) 2.70 2002(c) (.12) 15.14 15.00 2.05 7.84 INSURED CALIFORNIA TAX-FREE ADVANTAGE (NKX) ------------------------------------------------------------------------------------------- Year Ended 8/31: 2006(e) -- 15.01 14.46 3.29 1.49 2005 -- 15.17 14.38 7.46 9.84 2004 -- 14.62 14.19 11.54 12.86 2003(d) (.21) 13.79 13.56 (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: 2006(e) $367,832 1.13%* 6.24%* .83%* 6.54%* 3 2005 374,265 1.12 6.22 .75 6.59 4 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 CALIFORNIA DIVIDEND ADVANTAGE 2 (NVX) ------------------------------------------------------------------------------------------------------------------------------- Year Ended 8/31: 2006(e) 227,948 1.15* 5.96* .70* 6.41* 1 2005 231,140 1.16 5.94 .70 6.40 3 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: 2006(e) 364,328 1.16* 6.10* .70* 6.56* 3 2005 369,262 1.17 6.05 .70 6.51 5 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: 2006(e) 238,048 1.16* 6.12* .71* 6.57* -- 2005 241,254 1.16 6.06 .71 6.51 4 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: 2006(e) 88,293 1.22* 5.97* .73* 6.47* -- 2005 89,272 1.21 5.95 .73 6.43 3 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: 2006(e) $175,000 $25,000 $77,547 2005 175,000 25,000 78,466 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 CALIFORNIA DIVIDEND ADVANTAGE 2 (NVX) --------------------------------------------------------------------- Year Ended 8/31: 2006(e) 110,000 25,000 76,806 2005 110,000 25,000 77,532 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: 2006(e) 187,000 25,000 73,707 2005 187,000 25,000 74,367 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: 2006(e) 118,000 25,000 75,434 2005 118,000 25,000 76,113 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: 2006(e) 4 5,000 25,000 74,052 2005 45,000 25,000 74,595 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, 2006. See accompanying notes to financial statements. 80-81 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 EXCHANGE-TRADED CLOSED-END FUNDS DIVIDEND REINVESTMENT PLAN Your Nuveen Exchange-Traded Closed-End Fund allows you to conveniently reinvest dividends and/or capital gains distributions in additional fund shares. By choosing to reinvest, you'll be able to invest money regularly and automatically, and watch your investment grow through the power of tax-free compounding. Just like dividends or distributions in cash, there may be times when income or capital gains taxes may be payable on dividends or distributions that are reinvested. It is important to note that an automatic reinvestment plan does not ensure a profit, nor does it protect you against loss in a declining market. EASY AND CONVENIENT To make recordkeeping easy and convenient, each month you'll receive a statement showing your total dividends and distributions, the date of investment, the shares acquired and the price per share, and the total number of shares you own. HOW SHARES ARE PURCHASED The shares you acquire by reinvesting will either be purchased on the open market or newly issued by the Fund. If the shares are trading at or above net asset value at the time of valuation, the Fund will issue new shares at the 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. 82 Other Useful INFORMATION 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, 2005, 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 expected period over which a bond's principal and interest will be paid, and consequently is a measure of the sensitivity of a bond's or bond Fund's value to changes when market interest rates change. Generally, the longer a bond's or Fund's duration, the more the price of the bond or Fund will change as interest rates change. Leverage-adjusted duration takes into account the leveraging process for a Fund and therefore is longer than the duration of the Fund's portfolio of bonds. MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An investment's current annualized dividend divided by its current market price. NET ASSET VALUE (NAV): A Fund's common share NAV per share is calculated by subtracting the liabilities of the Fund (including any 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 Company Boston, MA TRANSFER AGENT AND SHAREHOLDER SERVICES State Street Bank & Trust Company Nuveen Funds P.O. Box 43071 Providence, RI 02940-3071 (800) 257-8787 LEGAL COUNSEL Chapman and Cutler LLP Chicago, IL INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Ernst & Young LLP Chicago, IL Each Fund intends to repurchase 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. 83 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 $135 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 o Fund details Learn more o Daily financial news about Nuveen Funds at o Investor education WWW.NUVEEN.COM/ETF o Interactive planning tools Logo: NUVEEN Investments ESA-B-0206D 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 Portfolio of Investments 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. During this reporting period, the registrant's Board of Trustees implemented a change to the procedures by which shareholders may recommend nominees to the registrant's board of trustees by amending the registrant's by-laws to include a provision specifying the date by which shareholder nominations for election as trustee at a subsequent meeting must be submitted to the registrant. Shareholders must deliver or mail notice to the registrant not less than forty-five days nor more than sixty days prior to the first anniversary date of the date on which the registrant first mailed its proxy materials for the prior year's annual meeting; provided, however, if an only if the annual meeting is not scheduled to be held within a period that commences thirty days before the first anniversary date of the annual meeting for the preceding year and ends thirty days after such anniversary date (an annual meeting date outside such period being referred to as an "Other Annual Meeting Date" hereafter), the shareholder notice must be given no later than the close of business on the date forty-five days prior to such Other Annual Meeting Date or the tenth business day following the date such Other Annual Meeting Date is first publicly announced or disclosed. The shareholder's notice must be in writing and set forth the name, age, date of birth, business address, residence address and nationality of the person(s) being nominated and the class or series, number of all shares of the registrant owned of record or beneficially be each such person(s), any other information regarding such person required by Item 401 of Regulation S-K or Item 22 of Rule 14a-101 (Schedule 14A) under the Securities Exchange Act of 1934, as amended, any other information regarding the person(s) to be nominated that would be required to be disclosed in a proxy statement or other filings required to be made in connection with solicitation of proxies for election of trustees, and whether such shareholder believes any nominee is or will be an "interested person" (as that term is defined in the Investment Company Act of 1940, as amended) of the registrant or sufficient information to enable the registrant to make that determination and the written and signed consent of the person(s) to be nominated. 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 Insured California Tax-Free Advantage Municipal Fund ------------------------------------------------------------ By (Signature and Title)* /s/ Jessica R. Droeger ---------------------------------------------- Jessica R. Droeger Vice President and Secretary Date: May 5, 2006 ------------------------------------------------------------------- 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 5, 2006 ------------------------------------------------------------------- By (Signature and Title)* /s/ Stephen D. Foy ---------------------------------------------- Stephen D. Foy Vice President and Controller (principal financial officer) Date: May 5, 2006 ------------------------------------------------------------------- * Print the name and title of each signing officer under his or her signature.