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, 2007
------------------
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, 2007
Nuveen Investments
Municipal 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
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DEPENDABLE,
TAX-FREE INCOME BECAUSE
IT'S NOT WHAT YOU EARN,
IT'S WHAT YOU KEEP.(R)
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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
Dividend and Share Price Information, and the Performance Overview sections
of this report.
For some time, I've used these letters to remind you that 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
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
"IN ADDITION TO PROVIDING ATTRACTIVE TAX-FREE MONTHLY INCOME, A MUNICIPAL BOND
INVESTMENT LIKE YOUR FUND MAY HELP YOU ACHIEVE AND BENEFIT FROM GREATER
PORTFOLIO DIVERSIFICATION."
comes with investing. For more information about this important investment
strategy, I encourage you to contact your personal financial advisor.
We also are pleased to be able to offer you a choice concerning how you
receive your shareholder reports and other Fund information. As an
alternative to mailed copies, you can sign up to receive future Fund
reports and other Fund information by e-mail and the Internet. 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 16, 2007
Nuveen Investments Municipal Closed-End Funds
(NPC, NCL, NCU, NAC, NVX, NZH, NKL, NKX)
Portfolio Manager's
COMMENTS
Portfolio manager Scott Romans discusses key investment strategies and the
six-month performance of these eight closed-end Nuveen 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 2005.
WHAT KEY STRATEGIES WERE USED TO MANAGE THE CALIFORNIA FUNDS DURING THE
SIX-MONTH REPORTING PERIOD ENDED FEBRUARY 28, 2007?
During this six-month period, we saw a modest increase in short-term interest
rates, while longer-term rates continued to decline, resulting in further
flattening of the yield curve. In this environment, where the yield curve
remained the dominant market factor, we continued to emphasize a disciplined
approach to duration1 management and yield curve positioning. As part of this
approach, our purchases for the Funds' portfolios focused mainly on attractively
priced bonds in the 20-year to 30-year part of the yield curve. We believed that
bonds in this part of the curve generally offered better value and reward
opportunities more commensurate with their risk levels. To help us maintain the
Funds' durations within our preferred strategic range, we also selectively sold
holdings with shorter durations, including pre-refunded bonds and bonds with
short maturities.
Our duration management strategies during this period also included the purchase
of inverse floating rate trusts, a type of derivative financial instrument, in
all eight of these California Funds. The inverse floaters had the dual benefit
of increasing the Funds' distributable income and bringing their durations
closer to our preferred strategic target. In past shareholder reports, we also
have discussed the use of other derivatives as a duration management tool. Going
into this reporting period, four of these California Funds--NPC, NCL, NAC and
NVX--were using forward interest rate swaps to help manage net asset value (NAV)
volatility. NAC also had purchased a small number of U.S. Treasury note futures
contracts. As of February 28, 2007, these four Funds continued to use these
derivatives, although we reduced the positions in NCL during this six-month
period. (NCU, NZH, NKL and NKX did not use swaps during this period because we
believed the durations of these Funds were adequately positioned relative to the
general market.)
Overall, portfolio activity was relatively light during much of this period due
to the fact that the rate environment was not advantageous for active trading.
In watching the market for opportunities to add value to our portfolios, we
focused mainly on premium
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.
4
coupon - typically 5% bonds priced to 10-year calls. As the bond market
continued to rally, especially in November and December 2006, we also purchased
bonds with coupons in the 4% range which typically offered higher income.
We also continued to emphasize maintaining weightings of lower credit quality
bonds in the four uninsured Funds (NCU, NAC, NVX, and NZH) and in NKL and NKX
(which can invest up to 20% of their assets in uninsured investment-grade
quality securities). We generally saw fewer attractively priced lower-rated
credit offerings in the California market. Although California remained the
largest state issuer of municipal debt in the nation, much of the new supply
during this period was insured, and we did not find many opportunities outside
the insured sector. Apart from credit, one area of the market in which we did
continue to find value was the single family housing sector, where we purchased
bonds for all four of the uninsured Funds as well as NKL.
HOW DID THE FUNDS PERFORM?
Individual results for these Nuveen California Funds, as well as relevant index
and peer group information, are presented in the accompanying table.
TOTAL RETURNS ON NET ASSET VALUE
For periods ended 2/28/07
CUMULATIVE ANNUALIZED
---------- -------------------------------------------
UNINSURED FUNDS 6-MONTH 1-YEAR 5-YEAR 10-YEAR
--------------------------------------------------------------------------------
NCU 3.45% 5.40% 6.87% 7.05%
--------------------------------------------------------------------------------
NAC 3.16% 5.37% 7.40% NA
--------------------------------------------------------------------------------
NVX 3.04% 5.47% 7.13% NA
--------------------------------------------------------------------------------
NZH 3.38% 5.65% 7.49% NA
--------------------------------------------------------------------------------
Lehman Brothers
CA Tax-Exempt
Bond Index2 3.01% 5.21% 5.29% 5.90%
--------------------------------------------------------------------------------
Lipper CA
Municipal Debt
Funds Average3 3.66% 6.15% 6.85% 6.41%
--------------------------------------------------------------------------------
2 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 Brothers indexes
do not reflect any expenses.
3 The Lipper California Municipal Debt Funds category average is calculated
using the returns of all closed-end funds in this category for each period
as follows: 6 months, 25; 1 year, 25; 5 years, 15; and 10 years, 13. Fund
and Lipper returns assume reinvestment of dividends.
5
CUMULATIVE ANNUALIZED
---------- -------------------------------------------
INSURED FUNDS 6-MONTH 1-YEAR 5-YEAR 10-YEAR
--------------------------------------------------------------------------------
NPC 3.07% 4.86% 6.13% 6.42%
--------------------------------------------------------------------------------
NCL 3.13% 5.22% 6.18% 6.70%
--------------------------------------------------------------------------------
NKL 3.40% 5.60% NA NA
--------------------------------------------------------------------------------
NKX 3.81% 5.79% NA NA
--------------------------------------------------------------------------------
Lehman Brothers
Insured CA
Tax-Exempt
Bond Index2 3.12% 5.28% 5.24% 5.99%
--------------------------------------------------------------------------------
Lipper Insured
CA Municipal Debt
Funds Average4 3.66% 5.87% 5.56% 6.15%
--------------------------------------------------------------------------------
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.
For the six months ended February 28, 2007, the cumulative returns on NAV for
NCU, NAC and NZH outperformed the return on the Lehman Brothers California
Tax-Exempt Bond Index while NVX performed in line. The six-month returns for all
four of the Funds underperformed the average return of the Lipper California
peer group for this period. Among the insured Funds, NKL and NKX exceeded the
return on the Lehman Brothers Insured California Tax-Exempt Bond Index, while
NPC and NCL performed in line with this index return. NKX outperformed the
average return for the Lipper Insured California peer group, while NPC, NCL and
NKL trailed this group average.
Factors that influenced the Funds' returns during this period included duration
management, exposure to lower-rated credits (or credit risk) in the four
uninsured Funds, as well as NKL, and NKX, sector allocations, the relative
amount of advance refunding activity5, and the use of financial leverage.
As the yield curve continued to flatten over the course of this period, bonds
with longer duration structures, including zero coupon and non-callable bonds,
generally outperformed shorter duration bonds. Overall, these Funds were
strategically well positioned in terms of duration, as our careful approach to
duration management--including the use of inverse floaters and interest rate
swaps--kept the Funds' durations close to their preferred range.
With bonds rated BBB or lower and nonrated bonds generally outperforming other
credit quality sectors during this period, the four uninsured Funds as well as
NKL and NKX
4 The Lipper Insured California Municipal Debt Funds average is calculated
using the returns of all closed-end 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.
5 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 borrowing costs for bond issuers.
6
(which can invest up to 20% of their assets in uninsured investment-grade
quality securities) benefited from their allocations to lower-quality credits.
The performance of this sector was largely the result of investor demand for the
higher yields typically associated with lower-rated bonds, which drove up their
value. (NPC and NCL, as 100% insured Funds, cannot hold any lower-rated
credits.)
Among the lower-rated holdings making contributions to the returns of NCU, NAC,
NVX, NZH, NKL and NKX were health care (including hospitals) credits and
industrial development revenue bonds, which ranked as the top performing revenue
sectors in the national Lehman Brothers Municipal Bond Index for this period.
Bonds backed by the 1998 master tobacco settlement agreement, which comprised
approximately 2% to 6% of the portfolios of these six Funds as of February 28,
2007, also performed well during this period.
We also continued to see positive contributions from advance refunding activity,
which benefited these Funds through price appreciation and enhanced credit
quality. Some of the performance differential among these eight Funds can be
attributed to the relative amounts of advance refundings they experienced during
this period, with NVX having the fewest bonds pre-refunded (as a percentage of
its portfolio) among the uninsured Funds. Among the insured Funds, NKX had more
than three times the amount of advance refundings than the other three insured
Funds.
At the same time, holdings of older, previously pre-refunded bonds tended to
underperform the general municipal market during this period, due primarily to
their shorter effective maturities and higher credit quality. Among these eight
Funds, NAC and NVX had the heaviest allocations of pre-refunded bonds entering
into this period.
Another factor in the six-month performance of these Funds, especially relative
to the performances of the unleveraged Lehman Brothers California Tax-Exempt
Bond Index and Lehman Brothers Insured California Tax-Exempt Bond Index, was the
use of financial leverage. While leverage can add volatility to a Fund's NAV and
share price, this strategy can also provide opportunities for additional income
and total return for common shareholders. Over this period, our leveraging
strategy had a positive impact on the results of these eight Funds.
7
Dividend and Share Price
INFORMATION
The dividends of all eight of these California Funds remained stable over the
six-month reporting period ended February 28, 2007.
Due to normal portfolio activity, common shareholders of the following Funds
received capital gains and net ordinary income distributions at the end of
December 2006 as follows:
SHORT-TERM CAPITAL GAINS
LONG-TERM CAPITAL GAINS AND/OR ORDINARY INCOME
(PER SHARE) (PER SHARE)
--------------------------------------------------------------------------------
NPC $0.0754 $0.0058
--------------------------------------------------------------------------------
NCU $0.0308 --
--------------------------------------------------------------------------------
NAC $0.0533 --
--------------------------------------------------------------------------------
NKL $0.0026 --
--------------------------------------------------------------------------------
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, 2007, NPC and
NCL had positive UNII balances for both financial statement and, based on our
best estimates, tax purposes, while the other six Funds had negative UNII
balances for financial statement purposes and positive UNII balances, based on
our best estimates, for tax purposes.
8
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:
2/28/07 6-MONTH AVERAGE
PREMIUM/DISCOUNT PREMIUM/DISCOUNT
--------------------------------------------------------------------------------
NPC -3.14% -3.10%
--------------------------------------------------------------------------------
NCL -5.09% -5.35%
--------------------------------------------------------------------------------
NCU -3.93% -4.84%
--------------------------------------------------------------------------------
NAC +1.92% +1.48%
--------------------------------------------------------------------------------
NVX -1.23% -1.26%
--------------------------------------------------------------------------------
NZH -0.13% -0.07%
--------------------------------------------------------------------------------
NKL -1.15% +0.21%
--------------------------------------------------------------------------------
NKX -2.64% -1.72%
--------------------------------------------------------------------------------
9
Nuveen Insured California Premium Income Municipal Fund, Inc.
NPC
Performance
OVERVIEW As of February 28, 2007
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
Insured 67%
U.S. Guaranteed 33%
Bar Chart:
2006-2007 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Mar 0.067
Apr 0.067
May 0.067
Jun 0.0635
Jul 0.0635
Aug 0.0635
Sep 0.0605
Oct 0.0605
Nov 0.0605
Dec 0.0605
Jan 0.0605
Feb 0.0605
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
3/01/06 16.25
15.9
15.62
15.28
15.35
15.39
15.42
15.84
15.51
15.61
15.86
15.69
15.41
15.03
14.73
14.83
14.82
14.77
14.68
14.83
14.61
14.61
14.78
14.79
14.97
14.95
15.07
15.03
14.99
14.92
15.51
15.32
15.32
15.01
14.98
14.81
14.89
15.02
15.05
15.11
15.24
15.79
15.2
15.06
15.03
15.15
15.29
15.14
14.95
15.1
15.07
15.21
15.1
2/28/07 15.12
FUND SNAPSHOT
------------------------------------
Common Share Price $15.12
------------------------------------
Common Share
Net Asset Value $15.61
------------------------------------
Premium/(Discount) to NAV -3.14%
------------------------------------
Market Yield 4.80%
------------------------------------
Taxable-Equivalent Yield1 7.35%
------------------------------------
Net Assets Applicable
to Common Shares ($000) $100,794
------------------------------------
Average Effective Maturity
on Securities (Years) 14.94
------------------------------------
Leverage-Adjusted Duration 8.56
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/19/92)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 3.24% 3.07%
------------------------------------
1-Year -0.40% 4.86%
------------------------------------
5-Year 5.48% 6.13%
------------------------------------
10-Year 7.16% 6.42%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
U.S. Guaranteed 33.2%
------------------------------------
Tax Obligation/General 23.6%
------------------------------------
Tax Obligation/Limited 16.6%
------------------------------------
Water and Sewer 16.6%
------------------------------------
Other 10.0%
------------------------------------
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 34.7%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
2 The Fund paid shareholders capital gains and net ordinary income
distributions in December 2006 of $0.0812 per share.
10
Nuveen Insured California Premium Income Municipal Fund 2, Inc.
NCL
Performance
OVERVIEW As of February 28, 2007
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
Insured 77%
U.S. Guaranteed 23%
Bar Chart:
2006-2007 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Mar 0.0625
Apr 0.0625
May 0.0625
Jun 0.059
Jul 0.059
Aug 0.059
Sep 0.056
Oct 0.056
Nov 0.056
Dec 0.056
Jan 0.056
Feb 0.056
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
3/01/06 15.17
15.05
14.71
14.76
14.66
14.62
14.53
14.79
14.5
14.42
14.46
14.18
14.13
14.13
14.12
14.15
13.97
14.03
13.79
13.97
13.69
13.69
14.14
14.21
14.12
14.19
14.21
14.24
14.22
14.19
14.29
14.35
14.27
14.3
14.14
14.08
14.14
14.21
14.08
14.13
14.21
14.46
14.28
14.27
14.26
14.25
14.29
14.2
14.12
14.17
14.25
14.26
14.26
2/28/07 14.35
FUND SNAPSHOT
------------------------------------
Common Share Price $14.35
------------------------------------
Common Share
Net Asset Value $15.12
------------------------------------
Premium/(Discount) to NAV -5.09%
------------------------------------
Market Yield 4.68%
------------------------------------
Taxable-Equivalent Yield1 7.17%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $192,243
------------------------------------
Average Effective Maturity
on Securities (Years) 15.83
------------------------------------
Leverage-Adjusted Duration 7.96
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/18/93)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 3.53% 3.13%
------------------------------------
1-Year -0.14% 5.22%
------------------------------------
5-Year 5.19% 6.18%
------------------------------------
10-Year 6.93% 6.70%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 27.3%
------------------------------------
U.S. Guaranteed 22.6%
------------------------------------
Tax Obligation/General 16.2%
------------------------------------
Water and Sewer 14.5%
------------------------------------
Utilities 6.5%
------------------------------------
Other 12.9%
------------------------------------
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 34.7%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
11
Nuveen California Premium Income Municipal Fund
NCU
Performance
OVERVIEW As of February 28, 2007
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 67%
AA 6%
A 10%
BBB 12%
BB or Lower 4%
N/R 1%
Bar Chart:
2006-2007 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Mar 0.0635
Apr 0.0635
May 0.0635
Jun 0.0595
Jul 0.0595
Aug 0.0595
Sep 0.0565
Oct 0.0565
Nov 0.0565
Dec 0.0565
Jan 0.0565
Feb 0.0565
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
3/01/06 14.25
13.96
13.92
14.03
14.1
13.9
13.87
13.67
13.55
13.66
14.05
14.04
13.95
13.85
13.98
13.67
13.4
13.11
13.16
13.32
13.3
13.4
13.83
13.88
13.66
13.97
13.99
14.01
13.8
13.91
14
13.93
13.85
13.79
13.71
13.73
13.83
13.85
13.85
13.92
13.92
14.03
13.99
14.01
13.99
14.15
14.12
14.18
13.99
14.11
14.39
14.12
14.05
2/28/07 14.18
FUND SNAPSHOT
------------------------------------
Common Share Price $14.18
------------------------------------
Common Share
Net Asset Value $14.76
------------------------------------
Premium/(Discount) to NAV -3.93%
------------------------------------
Market Yield 4.78%
------------------------------------
Taxable-Equivalent Yield1 7.32%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $85,223
------------------------------------
Average Effective Maturity
on Securities (Years) 16.69
------------------------------------
Leverage-Adjusted Duration 7.87
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 6/18/93)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 3.91% 3.45%
------------------------------------
1-Year 5.66% 5.40%
------------------------------------
5-Year 6.60% 6.87%
------------------------------------
10-Year 7.29% 7.05%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 32.0%
------------------------------------
Tax Obligation/General 19.4%
------------------------------------
U.S. Guaranteed 12.9%
------------------------------------
Water and Sewer 11.8%
------------------------------------
Health Care 9.5%
------------------------------------
Other 14.4%
------------------------------------
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 34.7%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
2 The Fund paid shareholders a capital gains distribution in December 2006 of
$0.0308 per share.
12
Nuveen California Dividend Advantage Municipal Fund
NAC
Performance
OVERVIEW As of February 28, 2007
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 72%
AA 2%
A 11%
BBB 8%
N/R 7%
Bar Chart:
2006-2007 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Mar 0.0745
Apr 0.0745
May 0.0745
Jun 0.0705
Jul 0.0705
Aug 0.0705
Sep 0.0675
Oct 0.0675
Nov 0.0675
Dec 0.0675
Jan 0.0675
Feb 0.0675
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
3/01/06 16.16
16.01
16
15.84
15.65
15.74
15.57
15.01
15.23
15.24
15.63
15.34
15.23
15.7
15.87
15.63
15.25
15.21
15.18
15.45
15.28
15.45
15.46
15.89
15.87
15.53
15.73
15.88
15.69
15.74
15.8
16
15.9
15.66
15.71
15.62
15.72
15.6
15.68
15.87
16.24
16.21
15.67
15.67
15.9
15.73
15.78
16.02
16.01
16
16.03
15.84
15.89
2/28/07 15.92
FUND SNAPSHOT
------------------------------------
Common Share Price $15.92
------------------------------------
Common Share
Net Asset Value $15.62
------------------------------------
Premium/(Discount) to NAV 1.92%
------------------------------------
Market Yield 5.09%
------------------------------------
Taxable-Equivalent Yield1 7.79%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $366,471
------------------------------------
Average Effective Maturity
on Securities (Years) 15.32
------------------------------------
Leverage-Adjusted Duration 7.45
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 5/26/99)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 2.59% 3.16%
------------------------------------
1-Year 5.20% 5.37%
------------------------------------
5-Year 8.72% 7.40%
------------------------------------
Since
Inception 7.20% 7.44%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
U.S. Guaranteed 26.0%
------------------------------------
Tax Obligation/Limited 18.9%
------------------------------------
Tax Obligation/General 13.7%
------------------------------------
Transportation 12.6%
------------------------------------
Health Care 6.8%
------------------------------------
Water and Sewer 5.7%
------------------------------------
Utilities 5.7%
------------------------------------
Housing/Multifamily 5.5%
------------------------------------
Other 5.1%
------------------------------------
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 34.7%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
2 The Fund paid shareholders a capital gains distribution in December 2006 of
$0.0533 per share.
13
Nuveen California Dividend Advantage Municipal Fund 2
NVX
Performance
OVERVIEW As of February 28, 2007
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 73%
AA 1%
A 11%
BBB 8%
N/R 7%
Bar Chart:
2006-2007 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Mar 0.0685
Apr 0.0685
May 0.0685
Jun 0.0655
Jul 0.0655
Aug 0.0655
Sep 0.0655
Oct 0.0655
Nov 0.0655
Dec 0.0655
Jan 0.0655
Feb 0.0655
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
3/01/06 14.9
14.63
14.67
14.55
14.51
14.55
14.41
14.35
14.42
14.35
14.65
14.67
14.75
14.73
14.9
14.75
14.49
14.14
14.15
14.2
14.19
14.17
14.7
14.81
14.69
14.75
14.8
14.99
15.07
15.02
15.22
15.25
15.03
14.97
14.81
14.91
15.18
15.14
15.29
15.15
15.37
15.34
15.12
15.25
15.49
15.4
15.31
15.13
15.2
15.46
15.4
15.23
15.12
2/28/07 15.24
FUND SNAPSHOT
------------------------------------
Common Share Price $15.24
------------------------------------
Common Share
Net Asset Value $15.43
------------------------------------
Premium/(Discount) to NAV -1.23%
------------------------------------
Market Yield 5.16%
------------------------------------
Taxable-Equivalent Yield1 7.90%
------------------------------------
Net Assets Applicable
to Common Shares ($000) $228,237
------------------------------------
Average Effective Maturity
on Securities (Years) 14.67
------------------------------------
Leverage-Adjusted Duration 8.39
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/27/01)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 4.57% 3.04%
------------------------------------
1-Year 7.70% 5.47%
------------------------------------
5-Year 7.60% 7.13%
------------------------------------
Since
Inception 6.51% 7.28%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
U.S. Guaranteed 20.7%
------------------------------------
Tax Obligation/Limited 20.7%
------------------------------------
Water and Sewer 10.3%
------------------------------------
Education and Civic
Organizations 10.1%
------------------------------------
Tax Obligation/General 9.6%
------------------------------------
Health Care 7.9%
------------------------------------
Transportation 6.8%
------------------------------------
Housing/Multifamily 6.7%
------------------------------------
Other 7.2%
------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34.7%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
14
Nuveen California Dividend Advantage Municipal Fund 3
NZH
Performance
OVERVIEW As of February 28, 2007
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 68%
AA 1%
A 14%
BBB 8%
N/R 9%
Bar Chart:
2006-2007 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Mar 0.068
Apr 0.068
May 0.068
Jun 0.0655
Jul 0.0655
Aug 0.0655
Sep 0.0655
Oct 0.0655
Nov 0.0655
Dec 0.0655
Jan 0.0655
Feb 0.0655
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
3/01/06 14.71
14.56
14.4
14.41
14.29
14.5
14.5
14.2
14.11
14.3
14.39
14.31
14.38
14.45
14.52
14.43
14.22
14.07
14.11
14.16
14.13
14.22
14.4
14.54
14.55
14.6
14.67
14.78
14.93
14.82
14.94
14.86
14.96
14.7
14.92
14.95
14.98
15.01
15.07
15.1
15.14
15.15
15.08
15.25
15.5
15.32
15.25
15.21
15.15
15.23
15.28
15.05
15.05
2/28/07 15.12
FUND SNAPSHOT
------------------------------------
Common Share Price $15.12
------------------------------------
Common Share
Net Asset Value $15.14
------------------------------------
Premium/(Discount) to NAV -0.13%
------------------------------------
Market Yield 5.20%
------------------------------------
Taxable-Equivalent Yield1 7.96%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $365,300
------------------------------------
Average Effective Maturity
on Securities (Years) 16.07
------------------------------------
Leverage-Adjusted Duration 7.62
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 9/25/01)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 4.56% 3.38%
------------------------------------
1-Year 8.94% 5.65%
------------------------------------
5-Year 8.24% 7.49%
------------------------------------
Since
Inception 6.38% 6.97%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 27.2%
------------------------------------
Tax Obligation/General 15.8%
------------------------------------
U.S. Guaranteed 10.8%
------------------------------------
Health Care 10.2%
------------------------------------
Water and Sewer 8.4%
------------------------------------
Utilities 7.3%
------------------------------------
Transportation 6.9%
------------------------------------
Housing/Multifamily 6.5%
------------------------------------
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 34.7%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
15
Nuveen Insured California Dividend Advantage Municipal Fund
NKL
Performance
OVERVIEW As of February 28, 2007
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
Insured 73%
U.S. Guaranteed 13%
GNMA/FNMA Guaranteed 1%
A (Uninsured) 7%
BBB (Uninsured) 6%
Bar Chart:
2006-2007 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Mar 0.072
Apr 0.072
May 0.072
Jun 0.068
Jul 0.068
Aug 0.068
Sep 0.065
Oct 0.065
Nov 0.065
Dec 0.065
Jan 0.065
Feb 0.065
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
3/01/06 15.25
15.2
15.27
15.09
15.41
15.28
15.2
15.24
15.36
15.29
15.4
15.35
15.14
15.42
15.46
15.46
15.02
14.85
14.57
14.85
14.92
14.86
15.08
15.3
15.35
15.46
15.51
15.64
15.38
15.35
15.53
15.7
15.71
15.64
15.69
15.55
15.58
15.61
15.47
15.5
15.71
15.98
15.52
15.68
15.82
15.67
15.63
15.54
15.4
15.48
15.44
15.4
15.31
2/28/07 15.45
FUND SNAPSHOT
------------------------------------
Common Share Price $15.45
------------------------------------
Common Share
Net Asset Value $15.63
------------------------------------
Premium/(Discount) to NAV -1.15%
------------------------------------
Market Yield 5.05%
------------------------------------
Taxable-Equivalent Yield1 7.73%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $238,698
------------------------------------
Average Effective Maturity
on Securities (Years) 16.97
------------------------------------
Leverage-Adjusted Duration 7.16
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/25/02)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 0.91% 3.40%
------------------------------------
1-Year 6.77% 5.60%
------------------------------------
Since
Inception 6.96% 8.00%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 29.0%
------------------------------------
Tax Obligation/General 18.5%
------------------------------------
U.S. Guaranteed 12.7%
------------------------------------
Utilities 12.0%
------------------------------------
Water and Sewer 11.6%
------------------------------------
Education and Civic
Organizations 3.8%
------------------------------------
Other 12.4%
------------------------------------
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 34.7%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
2 The Fund paid shareholders a capital gains distribution in December 2006 of
$0.0026 per share.
16
Nuveen Insured California Tax-Free Advantage Municipal Fund
NKX
Performance
OVERVIEW As of February 28, 2007
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
Insured 69%
U.S. Guaranteed 16%
A (Uninsured) 9%
BBB (Uninsured) 6%
Bar Chart:
2006-2007 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Mar 0.063
Apr 0.063
May 0.063
Jun 0.059
Jul 0.059
Aug 0.059
Sep 0.059
Oct 0.059
Nov 0.059
Dec 0.059
Jan 0.059
Feb 0.059
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
3/01/06 14.4
14.47
14.32
14.13
14.37
14.4
14.52
14.49
14.3
14.43
14.49
14.02
14.15
14.18
14.89
14.43
14
13.69
13.68
13.79
13.36
13.99
14.28
14.45
14.54
14.05
13.96
14.25
14.33
14.52
14.56
14.5
14.62
14.31
14.22
14.34
14.5
14.65
14.45
14.6
14.68
14.85
14.8
15.09
15.01
15.03
15.22
15
15.44
15
14.95
14.77
14.67
2/28/07 14.73
FUND SNAPSHOT
------------------------------------
Common Share Price $14.73
------------------------------------
Common Share
Net Asset Value $15.13
------------------------------------
Premium/(Discount) to NAV -2.64%
------------------------------------
Market Yield 4.81%
------------------------------------
Taxable-Equivalent Yield1 7.37%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $89,029
------------------------------------
Average Effective Maturity
on Securities (Years) 17.04
------------------------------------
Leverage-Adjusted Duration 7.39
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/21/02)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 5.72% 3.81%
------------------------------------
1-Year 7.02% 5.79%
------------------------------------
Since
Inception 5.32% 7.00%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 27.0%
------------------------------------
Tax Obligation/General 24.4%
------------------------------------
U.S. Guaranteed 16.3%
------------------------------------
Water and Sewer 8.4%
------------------------------------
Health Care 7.3%
------------------------------------
Transportation 6.7%
------------------------------------
Other 9.9%
------------------------------------
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 34.7%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
17
Shareholder
MEETING REPORT
The meeting was held in the offices of Nuveen Investments on
November 14, 2006.
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 5,917,713 -- 11,697,483 -- 5,425,315 --
Withhold 57,359 -- 97,309 -- 70,767 --
------------------------------------------------------------------------------------------------------------------------------------
Total 5,975,072 -- 11,794,792 -- 5,496,082 --
====================================================================================================================================
Lawrence H. Brown
For 5,913,913 -- 11,698,246 -- 5,427,115 --
Withhold 61,159 -- 96,546 -- 68,967 --
------------------------------------------------------------------------------------------------------------------------------------
Total 5,975,072 -- 11,794,792 -- 5,496,082 --
====================================================================================================================================
Jack B. Evans
For 5,918,113 -- 11,695,573 -- 5,425,235 --
Withhold 56,959 -- 99,219 -- 70,847 --
------------------------------------------------------------------------------------------------------------------------------------
Total 5,975,072 -- 11,794,792 -- 5,496,082 --
====================================================================================================================================
William C. Hunter
For 5,918,113 -- 11,697,883 -- 5,427,504 --
Withhold 56,959 -- 96,909 -- 68,578 --
------------------------------------------------------------------------------------------------------------------------------------
Total 5,975,072 -- 11,794,792 -- 5,496,082 --
====================================================================================================================================
David J. Kundert
For 5,918,113 -- 11,694,938 -- 5,427,310 --
Withhold 56,959 -- 99,854 -- 68,772 --
------------------------------------------------------------------------------------------------------------------------------------
Total 5,975,072 -- 11,794,792 -- 5,496,082 --
====================================================================================================================================
William J. Schneider
For -- 1,547 -- 3,131 -- 1,441
Withhold -- 2 -- 19 -- 46
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,549 -- 3,150 -- 1,487
====================================================================================================================================
Timothy R. Schwertfeger
For -- 1,547 -- 3,131 -- 1,441
Withhold -- 2 -- 19 -- 46
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,549 -- 3,150 -- 1,487
====================================================================================================================================
Judith M. Stockdale
For 5,914,813 -- 11,698,638 -- 5,424,297 --
Withhold 60,259 -- 96,154 -- 71,785 --
------------------------------------------------------------------------------------------------------------------------------------
Total 5,975,072 -- 11,794,792 -- 5,496,082 --
====================================================================================================================================
Eugene S. Sunshine
For 5,918,377 -- 11,697,883 -- 5,427,310 --
Withhold 56,695 -- 96,909 -- 68,772 --
------------------------------------------------------------------------------------------------------------------------------------
Total 5,975,072 -- 11,794,792 -- 5,496,082 --
====================================================================================================================================
18
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 22,406,788 -- 14,118,025 -- 22,812,738 --
Withhold 225,819 -- 214,421 -- 139,303 --
------------------------------------------------------------------------------------------------------------------------------------
Total 22,632,607 -- 14,332,446 -- 22,952,041 --
====================================================================================================================================
Lawrence H. Brown
For 22,376,172 -- 14,118,525 -- 22,818,945 --
Withhold 256,435 -- 213,921 -- 133,096 --
------------------------------------------------------------------------------------------------------------------------------------
Total 22,632,607 -- 14,332,446 -- 22,952,041 --
====================================================================================================================================
Jack B. Evans
For 22,404,302 -- 14,117,445 -- 22,809,677 --
Withhold 228,305 -- 215,001 -- 142,364 --
------------------------------------------------------------------------------------------------------------------------------------
Total 22,632,607 -- 14,332,446 -- 22,952,041 --
====================================================================================================================================
William C. Hunter
For 22,405,248 -- 14,110,995 -- 22,819,487 --
Withhold 227,359 -- 221,451 -- 132,554 --
------------------------------------------------------------------------------------------------------------------------------------
Total 22,632,607 -- 14,332,446 -- 22,952,041 --
====================================================================================================================================
David J. Kundert
For 22,408,462 -- 14,119,325 -- 22,814,887 --
Withhold 224,145 -- 213,121 -- 137,154 --
------------------------------------------------------------------------------------------------------------------------------------
Total 22,632,607 -- 14,332,446 -- 22,952,041 --
====================================================================================================================================
William J. Schneider
For -- 6,219 -- 3,888 -- 6,595
Withhold -- 44 -- -- -- 2
------------------------------------------------------------------------------------------------------------------------------------
Total -- 6,263 -- 3,888 -- 6,597
====================================================================================================================================
Timothy R. Schwertfeger
For -- 6,219 -- 3,888 -- 6,595
Withhold -- 44 -- -- -- 2
------------------------------------------------------------------------------------------------------------------------------------
Total -- 6,263 -- 3,888 -- 6,597
====================================================================================================================================
Judith M. Stockdale
For 22,395,121 -- 14,111,375 -- 22,801,876 --
Withhold 237,486 -- 221,071 -- 150,165 --
------------------------------------------------------------------------------------------------------------------------------------
Total 22,632,607 -- 14,332,446 -- 22,952,041 --
====================================================================================================================================
Eugene S. Sunshine
For 22,401,735 -- 14,119,325 -- 22,820,388 --
Withhold 230,872 -- 213,121 -- 131,653 --
------------------------------------------------------------------------------------------------------------------------------------
Total 22,632,607 -- 14,332,446 -- 22,952,041 --
====================================================================================================================================
19
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 14,596,332 -- 5,548,488 --
Withhold 122,709 -- 102,534 --
------------------------------------------------------------------------------------------------------------------------------------
Total 14,719,041 -- 5,651,022 --
====================================================================================================================================
Lawrence H. Brown
For 14,596,332 -- 5,547,688 --
Withhold 122,709 -- 103,334 --
------------------------------------------------------------------------------------------------------------------------------------
Total 14,719,041 -- 5,651,022 --
====================================================================================================================================
Jack B. Evans
For 14,593,932 -- 5,548,488 --
Withhold 125,109 -- 102,534 --
------------------------------------------------------------------------------------------------------------------------------------
Total 14,719,041 -- 5,651,022 --
====================================================================================================================================
William C. Hunter
For 14,590,998 -- 5,562,488 --
Withhold 128,043 -- 88,534 --
------------------------------------------------------------------------------------------------------------------------------------
Total 14,719,041 -- 5,651,022 --
====================================================================================================================================
David J. Kundert
For 14,596,332 -- 5,548,488 --
Withhold 122,709 -- 102,534 --
------------------------------------------------------------------------------------------------------------------------------------
Total 14,719,041 -- 5,651,022 --
====================================================================================================================================
William J. Schneider
For -- 3,804 -- 1,480
Withhold -- 18 -- 13
------------------------------------------------------------------------------------------------------------------------------------
Total -- 3,822 -- 1,493
====================================================================================================================================
Timothy R. Schwertfeger
For -- 3,804 -- 1,480
Withhold -- 18 -- 13
------------------------------------------------------------------------------------------------------------------------------------
Total -- 3,822 -- 1,493
====================================================================================================================================
Judith M. Stockdale
For 14,592,632 -- 5,541,888 --
Withhold 126,409 -- 109,134 --
------------------------------------------------------------------------------------------------------------------------------------
Total 14,719,041 -- 5,651,022 --
====================================================================================================================================
Eugene S. Sunshine
For 14,590,598 -- 5,562,488 --
Withhold 128,443 -- 88,534 --
------------------------------------------------------------------------------------------------------------------------------------
Total 14,719,041 -- 5,651,022 --
====================================================================================================================================
20
Nuveen Insured California Premium Income Municipal Fund, Inc. (NPC)
Portfolio of
INVESTMENTS February 28, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 6.5% (4.5% OF TOTAL INVESTMENTS)
$ 2,125 California Educational Facilities Authority, Student Loan Revenue 3/08 at 102.00 Aaa $ 2,194,891
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 2,699,775
Series 2004A, 5.000%, 11/01/18 - FSA Insured
1,500 California State University, Systemwide Revenue Bonds, 5/15 at 100.00 AAA 1,610,670
Series 2005A, 5.000%, 11/01/25 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
6,125 Total Education and Civic Organizations 6,505,336
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 4.6% (3.2% OF TOTAL INVESTMENTS)
3,000 California Health Facilities Financing Authority, Insured 8/08 at 101.00 AAA 3,094,140
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 1,577,610
Certificates of Participation, Sutter Health Obligated Group,
Series 1999, 5.500%, 8/15/19 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
4,500 Total Health Care 4,671,750
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.3% (0.2% OF TOTAL INVESTMENTS)
225 California Housing Finance Agency, Home Mortgage Revenue 2/16 at 100.00 AAA 242,237
Bonds, Series 2006H, 5.750%, 8/01/30 - FGIC Insured
(Alternative Minimum Tax)
115 California Housing Finance Agency, Single Family Mortgage 8/07 at 102.00 AAA 117,424
Bonds II, Series 1997A-1, 6.000%, 8/01/20 - MBIA Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
340 Total Housing/Single Family 359,661
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 34.1% (23.6% 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 2,058,134
1,250 5.250%, 8/01/25 - MBIA Insured 8/14 at 100.00 AAA 1,361,200
2,000 California, General Obligation Veterans Welfare Bonds, 6/07 at 101.00 AAA 2,017,520
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 2,818,856
1,775 5.250%, 9/01/22 - FGIC Insured 9/14 at 100.00 AAA 1,939,330
1,225 Fresno Unified School District, Fresno County, California, 2/13 at 103.00 AAA 1,442,732
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 1,265,928
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 1,217,236
California, General Obligation Bonds, Series 2005A,
5.000%, 8/01/24 - FSA Insured
1,690 Los Angeles Unified School District, Los Angeles County, 7/16 at 100.00 AAA 1,780,500
California, General Obligation Bonds, Series 2006B,
4.750%, 7/01/25 - FGIC Insured (UB)
3,000 Pomona Unified School District, Los Angeles County, 8/11 at 103.00 AAA 3,429,030
California, General Obligation Refunding Bonds, Series 1997A,
6.500%, 8/01/19 - MBIA Insured
160 Roseville Joint Union High School District, Placer County, 8/15 at 100.00 AAA 171,758
California, General Obligation Bonds, Series 2006B,
5.000%, 8/01/27 - FGIC Insured
3,000 Sacramento City Unified School District, Sacramento County, 7/15 at 100.00 Aaa 3,218,550
California, General Obligation Bonds, Series 2005,
5.000%, 7/01/27 - MBIA Insured
21
Nuveen Insured California Premium Income Municipal Fund, Inc. (NPC) (continued)
Portfolio of INVESTMENTS February 28, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
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 $ 1,428,957
3,500 5.000%, 7/01/22 - FSA Insured 7/11 at 102.00 AAA 3,746,330
4,895 5.000%, 7/01/23 - FSA Insured 7/11 at 102.00 AAA 5,239,510
1,234 San Diego Unified School District, San Diego County, California, 7/16 at 101.00 AAA 1,260,926
General Obligation Bonds, Series 2006F-1, 4.500%, 7/01/29 -
FSA Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
31,844 Total Tax Obligation/General 34,396,497
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 24.0% (16.6% OF TOTAL INVESTMENTS)
1,000 Brea and Olinda Unified School District, Orange County, 8/11 at 101.00 AAA 1,054,200
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 1,295,591
1,615 5.000%, 12/01/21 - AMBAC Insured 12/13 at 100.00 AAA 1,718,069
195 Capistrano Unified School District, Orange County, California, 9/15 at 100.00 AAA 209,600
Special Tax Bonds, Community Facilities District, Series 2005,
5.000%, 9/01/24 - FGIC Insured
595 San Diego Unified School District, San Diego County, California, 7/16 at 101.00 AAA 642,195
General Obligation Bonds, Series 2006G-1, 4.500%, 7/01/29 -
FSA Insured (UB)
1,900 Corona-Norco Unified School District, Riverside County, 9/12 at 100.00 AAA 2,015,121
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 5,230,200
Department of Public Services Facility Phase II, Series 2001,
5.250%, 1/01/34 - AMBAC Insured
435 Indian Wells Redevelopment Agency, California, Tax Allocation 9/13 at 100.00 AAA 466,011
Bonds, Consolidated Whitewater Project Area, Series 2003A,
5.000%, 9/01/20 - AMBAC Insured
345 Los Angeles Community Redevelopment Agency, California, 9/15 at 100.00 Aaa 366,732
Lease Revenue Bonds, Manchester Social Services Project,
Series 2005, 5.000%, 9/01/37 - AMBAC Insured
895 Los Angeles Community Redevelopment Agency, California, 12/14 at 100.00 AAA 960,621
Tax Allocation Bonds, Bunker Hill Project, Series 2004A,
5.000%, 12/01/20 - FSA Insured
165 Rialto Redevelopment Agency, California, Tax Allocation Bonds, 9/15 at 100.00 AAA 175,149
Merged Project Area, Series 2005A, 5.000%, 9/01/35 -
XLCA Insured
205 Roseville, California, Certificates of Participation, Public 8/13 at 100.00 AAA 216,330
Facilities, Series 2003A, 5.000%, 8/01/25 - AMBAC Insured
3,000 Santa Clara County Financing Authority, California, Lease 11/07 at 102.00 AAA 3,082,710
Revenue Bonds, VMC Facility Replacement Project,
Series 1997A, 5.000%, 11/15/22 - AMBAC Insured
3,565 Sweetwater Union High School District Public Financing 9/15 at 100.00 AAA 3,810,664
Authority, California, Special Tax Revenue Bonds, Series 2005A,
5.000%, 9/01/25 - FSA Insured
2,805 Yucaipa-Calimesa Joint Unified School District, San Bernardino 10/11 at 100.00 AAA 2,917,312
County, California, General Obligation Refunding Bonds,
Series 2001A, 5.000%, 10/01/31 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
22,935 Total Tax Obligation/Limited 24,160,505
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 2.5% (1.8% OF TOTAL INVESTMENTS)
2,400 San Diego Unified Port District, California, Revenue Bonds, 9/14 at 100.00 AAA 2,543,952
Series 2004B, 5.000%, 9/01/29 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
22
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 48.0% (33.2% OF TOTAL INVESTMENTS) (4)
$ 2,000 California State Public Works Board, Lease Revenue Bonds, 11/09 at 101.00 AAA $ 2,131,820
Department of Health Services, Series 1999A,
5.750%, 11/01/24 (Pre-refunded 11/01/09) - MBIA 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 8,567,442
2,000 5.750%, 3/01/27 (Pre-refunded 3/01/10) - MBIA Insured 3/10 at 101.00 AAA 2,143,200
2,500 Fresno Unified School District, Fresno County, California, 8/09 at 102.00 AAA 2,621,025
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 8,502,240
Family Residential Mortgage Revenue Refunding Bonds,
Series 1986A, 8.000%, 12/01/19 (ETM)
965 Indian Wells Redevelopment Agency, California, Tax Allocation 9/13 at 100.00 Aaa 1,046,137
Bonds, Consolidated Whitewater Project Area, Series 2003A,
5.000%, 9/01/20 (Pre-refunded 9/01/13) - AMBAC Insured
5,135 Palmdale Community Redevelopment Agency, California, No Opt. Call AAA 6,769,522
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 9,379,886
Program Single Family Mortgage Revenue Bonds,
Series 1987A, 9.000%, 5/01/21 (Alternative Minimum
Tax) (ETM)
750 Sacramento County Sanitation District Financing Authority, 12/14 at 100.00 AAA 820,860
California, Revenue Bonds, Series 2004A, 5.000%, 12/01/21
(Pre-refunded 12/01/14) - AMBAC Insured
1,485 San Jose, California, Single Family Mortgage Revenue Bonds, No Opt. Call AAA 1,985,668
Series 1985A, 9.500%, 10/01/13 (ETM)
2,150 Santa Clara Valley Water District, California, Water Utility 6/10 at 100.00 AAA 2,253,544
System Revenue Bonds, Series 2000A, 5.125%, 6/01/31
(Pre-refunded 6/01/10) - FGIC Insured
2,000 University of California, Revenue Bonds, Multi-Purpose Projects, 9/10 at 101.00 AAA 2,118,340
Series 2002O, 5.125%, 9/01/31 (Pre-refunded 9/01/10) -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
39,200 Total U.S. Guaranteed 48,339,684
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 0.4% (0.3% OF TOTAL INVESTMENTS)
345 Merced Irrigation District, California, Electric System Revenue 9/15 at 100.00 AAA 371,082
Bonds, Series 2005, 5.125%, 9/01/31 - XLCA Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 23.9% (16.6% OF TOTAL INVESTMENTS)
5,255 El Dorado Irrigation District, California, Water and Sewer 3/13 at 100.00 AAA 5,603,985
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 1,311,106
Certificates of Participation, Series 2004A, 5.000%, 3/01/21 -
FGIC Insured
235 Healdsburg Public Financing Authority, California, Wastewater 4/16 at 100.00 AAA 251,553
Revenue Bonds, Series 2006, 5.000%, 4/01/36 - MBIA Insured
5,000 Indio Water Authority, California, Water Revenue Bonds, 4/16 at 100.00 AAA 5,383,700
Series 2006, 5.000%, 4/01/31 - AMBAC Insured
220 Marina Coast Water District, California, Enterprise Certificate 6/16 at 100.00 AAA 236,078
of Participation, Series 2006, 5.000%, 6/01/31 - MBIA Insured
1,500 Placerville Public Financing Authority, California, Wastewater 9/16 at 100.00 AAA 1,607,610
System Refinancing and Improvement Project Revenue Bonds,
Series 2006, 5.000%, 9/01/34 - XLCA Insured
3,400 San Diego Public Facilities Financing Authority, California, 5/07 at 101.00 AAA 3,444,064
Sewerage Revenue Bonds, Series 1997A, 5.250%, 5/15/22 -
FGIC Insured
1,310 Santa Fe Springs Public Financing Authority, California, 5/13 at 100.00 AAA 1,393,133
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 1,434,227
Certificates of Participation, Series 2003A, 5.000%, 8/01/20 -
MBIA Insured
23
Nuveen Insured California Premium Income Municipal Fund, Inc. (NPC) (continued)
Portfolio of INVESTMENTS February 28, 2007 (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 $ 2,123,920
of Participation, Series 2005A, 5.000%, 9/01/30 -
MBIA Insured
1,310 Wheeler Ridge-Maricopa Water District, Kern County, 5/07 at 102.00 AAA 1,338,414
California, Water Revenue Refunding Bonds, Series 1996,
5.700%, 11/01/15 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
22,805 Total Water and Sewer 24,127,790
------------------------------------------------------------------------------------------------------------------------------------
$ 130,494 Total Investments (cost $134,933,608) - 144.3% 145,476,257
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (2.3)% (2,346,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.6% 2,664,144
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (44.6)% (45,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 100,794,401
====================================================================================================================
FORWARD SWAPS OUTSTANDING AT FEBRUARY 28, 2007:
FUND FIXED RATE UNREALIZED
NOTIONAL PAY/RECEIVE FLOATING RATE FIXED RATE PAYMENT EFFECTIVE TERMINATION APPRECIATION
COUNTERPARTY AMOUNT FLOATING RATE INDEX (ANNUALIZED) FREQUENCY DATE (5) DATE (DEPRECIATION)
------------------------------------------------------------------------------------------------------------------------------------
Goldman Sachs $4,900,000 Receive 3-month USD-LIBOR 5.681% Semi-Annually 7/27/07 7/27/12 $(152,254)
JPMorgan 7,700,000 Receive 3-month USD-LIBOR 5.630 Semi-Annually 7/27/07 7/27/10 (151,718)
JPMorgan 3,100,000 Pay 3-month USD-LIBOR 5.869 Semi-Annually 7/27/07 7/27/34 276,099
Morgan Stanley 7,300,000 Pay 3-month USD-LIBOR 5.816 Semi-Annually 7/27/07 7/27/29 541,340
------------------------------------------------------------------------------------------------------------------------------------
$ 513,467
====================================================================================================================================
USD-LIBOR (United States Dollar-London Inter-Bank Offered Rate)
All of the bonds in the Portfolio of Investments 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) 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) Effective date represents the date on which both the
Fund and counterparty commence interest payment
accruals on each forward swap contract.
(ETM) Escrowed to maturity.
(UB) Underlying bond of an inverse floating rate trust
reflected as a financing transaction pursuant to the
provisions of SFAS No. 140.
See accompanying notes to financial statements.
24
Nuveen Insured California Premium Income Municipal Fund 2, Inc. (NCL)
Portfolio of
INVESTMENTS February 28, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 5.6% (3.8% OF TOTAL INVESTMENTS)
$ 620 California Educational Facilities Authority, Revenue Bonds, 11/10 at 100.00 Aaa $ 667,560
University of the Pacific, Series 2000, 5.875%, 11/01/20 -
MBIA Insured
2,125 California Educational Facilities Authority, Student Loan Revenue 3/08 at 102.00 Aaa 2,194,891
Bonds, Cal Loan Program, Series 2001A, 5.400%, 3/01/21 -
MBIA Insured (Alternative Minimum Tax)
1,500 California State University, Systemwide Revenue Bonds, 5/15 at 100.00 AAA 1,610,670
Series 2005A, 5.000%, 11/01/25 - AMBAC Insured
6,000 University of California, Revenue Bonds, Multi-Purpose 5/13 at 100.00 AAA 6,330,240
Projects, Series 2003A, 5.000%, 5/15/27 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
10,245 Total Education and Civic Organizations 10,803,361
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 4.4% (2.9% OF TOTAL INVESTMENTS)
1,450 California Health Facilities Financing Authority, Insured Health 7/07 at 101.00 AAA 1,481,697
Facility Revenue Refunding Bonds, Mark Twain St. Joseph's
Healthcare Corporation, Series 1996A, 6.000%, 7/01/19 -
MBIA Insured
5,000 The Regents of the University of California, Medical Center 5/15 at 101.00 AAA 5,054,250
Pooled Revenue Bonds, Series 2007A, 4.500%, 5/15/37 -
MBIA Insured
1,755 University of California, Hospital Revenue Bonds, UCLA 5/12 at 101.00 AAA 1,921,005
Medical Center, Series 2004A, 5.500%, 5/15/18 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
8,205 Total Health Care 8,456,952
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 2.2% (1.6% OF TOTAL INVESTMENTS)
440 California Housing Finance Agency, Home Mortgage Revenue 2/16 at 100.00 AAA 473,708
Bonds, Series 2006H, 5.750%, 8/01/30 - FGIC Insured
(Alternative Minimum Tax)
2,500 California Housing Finance Agency, Home Mortgage Revenue 2/16 at 100.00 AAA 2,667,800
Bonds, Series 2006K, 5.500%, 2/01/42 - AMBAC Insured
(Alternative Minimum Tax)
1,100 California Housing Finance Agency, Single Family Mortgage 8/07 at 101.50 AAA 1,121,802
Bonds, Series 1997C-2-II, 5.625%, 8/01/20 - MBIA Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
4,040 Total Housing/Single Family 4,263,310
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 24.1% (16.2% OF TOTAL INVESTMENTS)
1,460 ABC Unified School District, Los Angeles County, California, 8/10 at 101.00 AAA 1,572,683
General Obligation Bonds, Series 2000B, 5.750%, 8/01/16 -
FGIC Insured
1,425 Bassett Unified School District, Los Angeles County, California, 8/16 at 100.00 AAA 1,570,151
General Obligation Bonds, Series 2006B, 5.250%, 8/01/30 -
FGIC Insured
4,400 California, General Obligation Bonds, Series 2003, 2/13 at 100.00 AAA 4,628,756
5.000%, 2/01/31 - MBIA Insured
2,250 California, General Obligation Bonds, Series 2004, 4/14 at 100.00 AAA 2,386,935
5.000%, 4/01/31 - AMBAC Insured
3,000 California, General Obligation Veterans Welfare Bonds, 6/07 at 101.00 AAA 3,026,280
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 2,359,041
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 1,351,886
California, General Obligation Bonds, Series 2005A,
5.000%, 8/01/24 - FSA Insured
3,310 Los Angeles Unified School District, Los Angeles County, 7/16 at 100.00 AAA 3,487,251
California, General Obligation Bonds, Series 2006B,
4.750%, 7/01/25 - FGIC Insured (UB)
4,000 Los Angeles Unified School District, Los Angeles County, 7/17 at 100.00 AAA 4,118,240
California, General Obligation Bonds, Series 2007A,
4.500%, 7/01/24 - FSA Insured
25
Nuveen Insured California Premium Income Municipal Fund 2, Inc. (NCL) (continued)
Portfolio of INVESTMENTS February 28, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
Los Rios Community College District, Sacramento, El Dorado and
Yolo Counties, California, General Obligation Bonds, Series 2006C:
$ 2,110 5.000%, 8/01/21 - FSA Insured 8/14 at 102.00 AAA $ 2,297,853
3,250 5.000%, 8/01/22 - FSA Insured 8/14 at 102.00 AAA 3,534,960
3,395 5.000%, 8/01/23 - FSA Insured 8/14 at 102.00 AAA 3,688,056
1,270 Merced City School District, Merced County, California, 8/13 at 100.00 AAA 1,347,203
General Obligation Bonds, Series 2004, 5.000%, 8/01/22 -
FGIC Insured
305 Roseville Joint Union High School District, Placer County, 8/15 at 100.00 AAA 327,414
California, General Obligation Bonds, Series 2006B,
5.000%, 8/01/27 - FGIC Insured
2,500 Sacramento City Unified School District, Sacramento County, 7/15 at 100.00 Aaa 2,682,125
California, General Obligation Bonds, Series 2005,
5.000%, 7/01/27 - MBIA Insured
1,125 San Diego Unified School District, California, General No Opt. Call AAA 621,563
Obligation Bonds, Election of 1998, Series 1999A,
0.000%, 7/01/21 - FGIC Insured
1,575 San Diego Unified School District, San Diego County, 7/16 at 101.00 AAA 1,609,367
California, General Obligation Bonds, Series 2006G-1,
4.500%, 7/01/29 - FSA Insured (UB)
2,000 San Francisco Community College District, California, 6/10 at 102.00 Aaa 2,100,000
General Obligation Bonds, Series 2002A, 5.000%, 6/15/26 -
FGIC Insured
1,000 San Ramon Valley Unified School District, Contra Costa 8/14 at 100.00 AAA 1,069,300
County, California, General Obligation Bonds, Series 2004,
5.000%, 8/01/24 - FSA Insured
2,445 Washington Unified School District, Yolo County, California, 8/13 at 100.00 AAA 2,623,045
General Obligation Bonds, Series 2004A, 5.000%, 8/01/21 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
43,985 Total Tax Obligation/General 46,402,109
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 40.8% (27.3% 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 3,204,814
8,000 0.000%, 9/01/21 - FSA Insured No Opt. Call AAA 4,377,200
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 1,634,852
1,780 5.000%, 12/01/23 - AMBAC Insured 12/13 at 100.00 AAA 1,888,188
3,725 California State Public Works Board, Lease Revenue Bonds, 1/16 at 100.00 AAA 4,071,015
Department of Corrections, Series 2005J, 5.000%, 1/01/17 -
AMBAC Insured
380 Capistrano Unified School District, Orange County, California, 9/15 at 100.00 AAA 408,451
Special Tax Bonds, Community Facilities District, Series 2005,
5.000%, 9/01/24 - FGIC Insured
1,110 Chino Redevelopment Agency, California, Merged Chino 9/16 at 101.00 AAA 1,198,045
Project Area Tax Allocation Bonds, 5.000%, 9/01/38 -
AMBAC Insured (UB)
4,000 Contra Costa County, California, Certificates of Participation 11/07 at 102.00 AAA 4,122,640
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 6,223,320
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 8,832,028
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 3,102,690
California, Revenue Refunding Bonds, High School and
Elementary School Facilities, Series 1997A,
5.875%, 11/01/24 - MBIA Insured
1,810 Kern County Board of Education, California, Certificates 5/08 at 102.00 AAA 1,870,961
of 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 5,129,550
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 2,457,113
Project Tax Allocation Bonds, Housing and Gas Utility
Financing Project Areas, Series 2005A-1,
5.000%, 8/01/25 - AMBAC Insured
26
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 685 Los Angeles Community Redevelopment Agency, California, 9/15 at 100.00 Aaa $ 728,148
Lease Revenue Bonds, Manchester Social Services Project,
Series 2005, 5.000%, 9/01/37 - AMBAC Insured
1,000 Los Angeles Community Redevelopment Agency, California, 12/14 at 100.00 AAA 1,073,320
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 1,339,950
California, Proposition A First Tier Senior Sales Tax Revenue
Bonds, Series 2003B, 5.000%, 7/01/19 - MBIA Insured
4,000 Los Angeles, California, Certificates of Participation, 6/13 at 100.00 AAA 4,209,120
Municipal Improvement Corporation, Series 2003AW,
5.000%, 6/01/33 - AMBAC Insured
2,780 Pittsburg Redevelopment Agency, California, Tax Allocation No Opt. Call AAA 2,966,649
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 4,388,938
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 2,176,440
Refunding Bonds, Paguay Redevelopment Project, Series 2000,
5.750%, 6/15/33 - MBIA Insured
325 Rialto Redevelopment Agency, California, Tax Allocation Bonds, 9/15 at 100.00 AAA 344,991
Merged Project Area, Series 2005A, 5.000%, 9/01/35 -
XLCA Insured
1,000 Rocklin Unified School District, Placer County, California, 9/13 at 100.00 AAA 1,061,510
Special Tax Bonds, Community Facilities District 1,
Series 2004, 5.000%, 9/01/25 - MBIA Insured
405 Roseville, California, Certificates of Participation, Public 8/13 at 100.00 AAA 427,384
Facilities, Series 2003A, 5.000%, 8/01/25 - AMBAC Insured
5,000 San Bernardino Joint Powers Financing Authority, California, 9/09 at 102.00 AAA 5,308,000
Certificates of Participation Refunding, Police Station
Financing Project, Series 1999, 5.500%, 9/01/20 -
MBIA Insured
5,510 Sweetwater Union High School District Public Financing 9/15 at 100.00 AAA 5,869,252
Authority, California, Special Tax Revenue Bonds, Series 2005A,
5.000%, 9/01/28 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
80,145 Total Tax Obligation/Limited 78,414,569
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 6.9% (4.6% OF TOTAL INVESTMENTS)
6,500 Foothill/Eastern Transportation Corridor Agency, California, 1/10 at 65.32 AAA 3,777,670
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 4,292,920
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 5,206,600
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 13,277,190
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 33.7% (22.6% OF TOTAL INVESTMENTS) (4)
1,380 California Educational Facilities Authority, Revenue Bonds, 11/10 at 100.00 Aaa 1,492,277
University of the Pacific, Series 2000, 5.875%, 11/01/20
(Pre-refunded 11/01/10) - MBIA Insured
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 1,385,805
1,000 5.500%, 6/01/20 (Pre-refunded 6/01/10) - MBIA Insured 6/10 at 101.00 AAA 1,070,120
3,450 California State Public Works Board, Lease Revenue Bonds, 11/09 at 101.00 AAA 3,677,390
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 2,643,100
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 8,567,442
1,900 5.750%, 3/01/27 (Pre-refunded 3/01/10) - MBIA Insured 3/10 at 101.00 AAA 2,036,040
2,425 Central Unified School District, Fresno County, California, 3/07 at 100.00 AAA 2,450,172
General Obligation Bonds, Series 1993, 5.625%, 3/01/18 -
AMBAC Insured (ETM)
27
Nuveen Insured California Premium Income Municipal Fund 2, Inc. (NCL) (continued)
Portfolio of INVESTMENTS February 28, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 3,000 Escondido Union High School District, San Diego County, 5/07 at 102.00 AAA $ 3,070,410
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 1,119,091
1,160 5.125%, 8/01/22 - FSA Insured (ETM) 8/09 at 102.00 AAA 1,218,916
1,220 5.125%, 8/01/23 - FSA Insured (ETM) 8/09 at 102.00 AAA 1,281,964
1,500 Hacienda La Puente Unified School District, Los Angeles County, 8/10 at 101.00 AAA 1,597,560
California, General Obligation Bonds, Series 2000A,
5.250%, 8/01/25 (Pre-refunded 8/01/10) - MBIA Insured
2,665 Kern Community College District, California, General 11/13 at 100.00 AAA 2,893,071
Obligation Bonds, Series 2003A, 5.000%, 11/01/21
(Pre-refunded 11/01/13) - FGIC Insured
3,190 Kern County Board of Education, California, Certificates 5/08 at 102.00 AAA 3,313,166
of Participation Refunding, Series 1998A, 5.200%, 5/01/28
(Pre-refunded 5/01/08) - MBIA Insured
1,750 Lake Tahoe Unified School District, El Dorado County, 8/09 at 100.00 AAA 1,823,535
California, General Obligation Bonds, Series 1999A,
5.250%, 8/01/24 (Pre-refunded 8/01/09) - FGIC Insured
3,865 Los Angeles County Metropolitan Transportation Authority, 7/10 at 101.00 AAA 4,111,432
California, Proposition C Second Senior Lien Sales Tax
Revenue Bonds, Series 2000A, 5.250%, 7/01/30
(Pre-refunded 7/01/10) - 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 1,107,530
1,000 5.250%, 8/01/22 (Pre-refunded 8/01/14) - FSA Insured 8/14 at 100.00 AAA 1,107,530
2,500 Oakland, California, Insured Revenue Bonds, 1800 Harrison 1/10 at 100.00 AAA 2,669,275
Foundation - Kaiser Permanente, Series 1999A,
6.000%, 1/01/29 (Pre-refunded 1/01/10) - AMBAC Insured
2,775 Pomona Public Financing Authority, California, Revenue Bonds, 5/09 at 101.00 AAA 2,915,720
Water Facilities Project, Series 1999AC, 5.500%, 5/01/29
(Pre-refunded 5/01/09) - FGIC Insured
4,320 Riverside County, California, GNMA Mortgage-Backed No Opt. Call AAA 5,843,837
Securities Program Single Family Mortgage Revenue Bonds,
Series 1987B, 8.625%, 5/01/16 (Alternative Minimum
Tax) (ETM)
1,690 Sacramento City Financing Authority, California, Capital 12/09 at 102.00 AAA 1,823,138
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 1,078,760
California, Revenue Bonds, Series 2000A, 5.500%, 12/01/20
(Pre-refunded 12/01/10) - AMBAC Insured
750 Sacramento County Sanitation District Financing Authority, 12/14 at 100.00 AAA 820,860
California, Revenue Bonds, Series 2004A, 5.000%, 12/01/21
(Pre-refunded 12/01/14) - AMBAC Insured
3,500 San Francisco Bay Area Rapid Transit District, California, 7/09 at 101.00 AAA 3,688,580
Sales Tax Revenue Bonds, Series 1999, 5.500%, 7/01/34
(Pre-refunded 7/01/09) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
59,895 Total U.S. Guaranteed 64,806,721
------------------------------------------------------------------------------------------------------------------------------------
28
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 9.8% (6.5% OF TOTAL INVESTMENTS)
$ 3,740 California Pollution Control Financing Authority, Revenue 9/09 at 101.00 AAA $ 3,912,825
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 720,652
Bonds, Series 2005, 5.125%, 9/01/31 - XLCA Insured
3,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/12 at 101.00 AAA 3,727,990
Series 2002II, 5.125%, 7/01/26 - FSA Insured
100 Sacramento City Financing Authority, California, Capital 12/09 at 102.00 AAA 107,438
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 2,059,961
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 2,964,976
5,000 5.000%, 7/01/28 - MBIA Insured 7/13 at 100.00 AAA 5,280,250
------------------------------------------------------------------------------------------------------------------------------------
17,760 Total Utilities 18,774,092
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 21.6% (14.5% OF TOTAL INVESTMENTS)
1,700 Castaic Lake Water Agency, California, Revenue Certificates 8/14 at 100.00 AAA 1,820,071
of Participation, Series 2004A, 5.000%, 8/01/20 -
AMBAC Insured
2,975 Chino Basin Regional Finance Authority, California, Sewerage 8/07 at 100.00 AAA 2,981,069
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 2,131,880
Certificates of Participation, Series 2004A, 5.000%, 3/01/21 -
FGIC Insured
460 Healdsburg Public Financing Authority, California, Wastewater 4/16 at 100.00 AAA 492,402
Revenue Bonds, Series 2006, 5.000%, 4/01/36 - MBIA Insured
2,700 Los Angeles County Sanitation Districts Financing Authority, 10/13 at 100.00 AAA 2,901,123
California, Senior Revenue Bonds, Capital Projects,
Series 2003A, 5.000%, 10/01/21 - FSA Insured
430 Marina Coast Water District, California, Enterprise Certificate 6/16 at 100.00 AAA 461,424
of Participation, Series 2006, 5.000%, 6/01/31 - MBIA Insured
12,000 Orange County Sanitation District, California, Certificates 8/13 at 100.00 AAA 12,642,361
of Participation, Series 2003, 5.000%, 2/01/33 - FGIC Insured
1,700 Pomona Public Finance Authority, California, Revenue Bonds, 5/17 at 100.00 AAA 1,826,888
Water Facilities Project, Series 2007AY, 5.000%, 5/01/37 -
AMBAC Insured
1,520 San Buenaventura, California, Water Revenue Certificates 10/14 at 100.00 AAA 1,617,082
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 3,942,026
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 1,495,606
445 5.000%, 2/01/20 - FGIC Insured 2/14 at 100.00 AAA 474,584
465 5.000%, 2/01/21 - FGIC Insured 2/14 at 100.00 AAA 495,332
2,500 West Basin Municipal Water District, California, Revenue 8/13 at 100.00 AAA 2,635,275
Certificates of Participation, Series 2003A, 5.000%, 8/01/30 -
MBIA Insured
750 Westlands Water District, California, Revenue Certificates 9/16 at 100.00 AAA 803,010
of Participation, Series 2007A, 5.000%, 9/01/37 - MBIA Insured
29
Nuveen Insured California Premium Income Municipal Fund 2, Inc. (NCL) (continued)
Portfolio of INVESTMENTS February 28, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
Yorba Linda Water District, California, Certificates of
Participation, Highland Reservoir Renovation, Series 2003:
$ 2,010 5.000%, 10/01/28 - FGIC Insured 10/13 at 100.00 AAA $ 2,126,580
2,530 5.000%, 10/01/33 - FGIC Insured 10/13 at 100.00 AAA 2,676,740
------------------------------------------------------------------------------------------------------------------------------------
39,260 Total Water and Sewer 41,523,453
------------------------------------------------------------------------------------------------------------------------------------
$ 279,035 Total Investments (cost $271,367,321) - 149.1% 286,721,757
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (2.1)% (3,997,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.4% 4,517,766
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.4)% (95,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 192,242,523
====================================================================================================================
FORWARD SWAPS OUTSTANDING AT FEBRUARY 28, 2007:
FUND FIXED RATE UNREALIZED
NOTIONAL PAY/RECEIVE FLOATING RATE FIXED RATE PAYMENT EFFECTIVE TERMINATION APPRECIATION
COUNTERPARTY AMOUNT FLOATING RATE INDEX (ANNUALIZED) FREQUENCY DATE (5) DATE (DEPRECIATION)
------------------------------------------------------------------------------------------------------------------------------------
Morgan Stanley $6,200,000 Pay 3-month USD-LIBOR 5.811% Semi-Annually 7/27/07 7/27/24 $409,518
Morgan Stanley 5,400,000 Pay 3-month USD-LIBOR 5.816 Semi-Annually 7/27/07 7/27/29 400,444
------------------------------------------------------------------------------------------------------------------------------------
$809,962
====================================================================================================================================
USD-LIBOR (United States Dollar-London Inter-Bank Offered Rate)
All of the bonds in the Portfolio of Investments 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) 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) Effective date represents the date on which both the
Fund and counterparty commence interest payment
accruals on each forward swap contract.
(ETM) Escrowed to maturity.
(UB) Underlying bond of an inverse floating rate trust
reflected as a financing transaction pursuant to the
provisions of SFAS No. 140.
See accompanying notes to financial statements.
30
Nuveen California Premium Income Municipal Fund (NCU)
Portfolio of
INVESTMENTS February 28, 2007 (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 $ 1,579,920
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 301,732
Settlement Asset-Backed Bonds, Sonoma County Tobacco
Securitization Corporation, Series 2005, 4.250%, 6/01/21
3,475 California Statewide Financing Authority, Tobacco Settlement 5/12 at 100.00 Baa3 3,637,769
Asset-Backed Bonds, Pooled Tobacco Securitization Program,
Series 2002A, 5.625%, 5/01/29
------------------------------------------------------------------------------------------------------------------------------------
5,285 Total Consumer Staples 5,519,421
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 2.1% (1.4% OF TOTAL INVESTMENTS)
70 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 A3 73,640
University of Redlands, Series 2005A, 5.000%, 10/01/35
California Educational Facilities Authority, Revenue Bonds,
University of the Pacific, Series 2006:
45 5.000%, 11/01/21 11/15 at 100.00 A2 48,286
60 5.000%, 11/01/25 11/15 at 100.00 A2 63,973
1,500 University of California, Revenue Bonds, Multi-Purpose 5/13 at 100.00 AAA 1,616,745
Projects, Series 2003A, 5.125%, 5/15/17 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
1,675 Total Education and Civic Organizations 1,802,644
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 14.3% (9.5% OF TOTAL INVESTMENTS)
4,705 California Health Facilities Financing Authority, Hospital 5/07 at 100.00 BB 4,706,788
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 A2 502,219
Cedars-Sinai Medical Center, Series 2005, 5.000%, 11/15/34
1,500 California Infrastructure Economic Development Bank, 8/11 at 102.00 A+ 1,598,430
Revenue Bonds, Kaiser Hospital Assistance LLC, Series 2001A,
5.550%, 8/01/31
2,180 California Statewide Community Development Authority, 3/16 at 100.00 A+ 2,278,885
Revenue Bonds, Kaiser Permanante System, Series 2006,
5.000%, 3/01/41
730 California Statewide Community Development Authority, 8/16 at 100.00 A+ 784,714
Revenue Bonds, Kaiser Permanente System, Series 2001C,
5.250%, 8/01/31
2,100 California Statewide Community Development Authority, No Opt. Call AAA 2,303,553
Revenue Bonds, Sherman Oaks Health System, Series 1998A,
5.000%, 8/01/22 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
11,695 Total Health Care 12,174,589
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.9% (1.3% OF TOTAL INVESTMENTS)
1,600 California Statewide Community Development Authority, 7/08 at 101.00 BBB 1,647,488
Revenue Refunding Bonds, Irvine Apartment Communities
Development, Series 1998A, 5.250%, 5/15/25
(Mandatory put 5/15/13)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.5% (0.4% OF TOTAL INVESTMENTS)
200 California Housing Finance Agency, Home Mortgage Revenue 2/16 at 100.00 AAA 215,322
Bonds, Series 2006H, 5.750%, 8/01/30 - FGIC Insured
(Alternative Minimum Tax)
210 California Housing Finance Agency, Single Family Mortgage 8/07 at 102.00 AAA 214,427
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 35,611
Mortgage-Backed Securities Program Single Family Mortgage
Revenue Bonds, Series 1996C, 7.500%, 8/01/27
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
445 Total Housing/Single Family 465,360
------------------------------------------------------------------------------------------------------------------------------------
31
Nuveen California Premium Income Municipal Fund (NCU) (continued)
Portfolio of INVESTMENTS February 28, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.6% (0.4% OF TOTAL INVESTMENTS)
$ 500 California Pollution Control Financing Authority, Solid Waste 1/16 at 102.00 BBB $ 524,300
Disposal Revenue Bonds, Waste Management Inc.,
Series 2002A, 5.000%, 1/01/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 29.2% (19.4% OF TOTAL INVESTMENTS)
California, General Obligation Bonds, Series 2003:
1,000 5.250%, 11/01/19 - RAAI Insured 11/13 at 100.00 AA 1,082,890
1,500 5.000%, 2/01/31 - MBIA Insured 2/13 at 100.00 AAA 1,577,985
California, General Obligation Bonds, Series 2004:
1,750 5.000%, 4/01/22 4/14 at 100.00 A+ 1,867,635
1,400 5.200%, 4/01/26 4/14 at 100.00 A+ 1,508,794
4,000 California, General Obligation Veterans Welfare Bonds, 6/07 at 100.00 A1 4,003,560
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 1,070,770
General Obligation Bonds, Series 2002A, 5.000%, 8/01/21 -
FGIC Insured
6,000 Hartnell Community College District, California, General 6/16 at 100.00 AAA 6,467,278
Obligation Bonds, Series 2006B, 5.000%, 6/01/29 -
FSA Insured
Los Angeles Unified School District, Los Angeles County,
California, General Obligation Bonds, Series 2006B:
885 4.750%, 7/01/25 - FGIC Insured (UB) 7/16 at 100.00 AAA 932,392
590 4.750%, 7/01/27 - FGIC Insured (UB) 7/16 at 100.00 AAA 620,184
3,000 Pomona Unified School District, Los Angeles County, 8/11 at 103.00 AAA 3,384,450
California, 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 16,375
Obligation Bonds, Series 2004A, 5.250%, 8/01/22 -
MBIA Insured
135 Roseville Joint Union High School District, Placer County, 8/15 at 100.00 AAA 144,921
California, General Obligation Bonds, Series 2006B,
5.000%, 8/01/27 - FGIC Insured
705 San Diego Unified School District, San Diego County, 7/16 at 101.00 AAA 720,383
California, General Obligation Bonds, Series 2006G-1,
4.500%, 7/01/29 - FSA Insured (UB)
1,355 San Jose-Evergreen Community College District, Santa Clara 9/15 at 100.00 AAA 1,458,481
County, California, General Obligation Bonds, Series 2005A,
5.000%, 9/01/25 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
23,335 Total Tax Obligation/General 24,856,098
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 48.0% (32.0% OF TOTAL INVESTMENTS)
1,000 Bell Community Redevelopment Agency, California, Tax 10/13 at 100.00 AA 1,092,390
Allocation Bonds, Bell Project Area, Series 2003,
5.625%, 10/01/33 - RAAI 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 1,800,073
1,865 5.000%, 12/01/24 - AMBAC Insured 12/13 at 100.00 AAA 1,974,942
5,920 California State Public Works Board, Lease Revenue Bonds, 11/09 at 101.00 AAA 6,251,875
Department of Veterans Affairs, Southern California Veterans
Home - Chula Vista Facility, Series 1999A, 5.600%, 11/01/19 -
AMBAC Insured
905 California, Economic Recovery Revenue Bonds, Series 2004A, 7/14 at 100.00 AA+ 983,626
5.000%, 7/01/15
165 Capistrano Unified School District, Orange County, California, 9/15 at 100.00 AAA 177,354
Special Tax Bonds, Community Facilities District, Series 2005,
5.000%, 9/01/24 - FGIC Insured
500 Chino Redevelopment Agency, California, Merged Chino Project 9/16 at 101.00 AAA 539,660
Area Tax Allocation Bonds, 5.000%, 9/01/38 -
AMBAC Insured (UB)
1,450 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 AAA 1,710,725
Enhanced Asset Backed Settlement Revenue Bonds,
Series 2005A, Residual Series 1503, 7.326%, 6/01/38 -
FGIC Insured (IF)
Irvine, California, Unified School District, Community Facilities
District Special Tax Bonds, Series 2006A:
80 5.000%, 9/01/26 9/16 at 100.00 N/R 82,162
185 5.125%, 9/01/36 9/16 at 100.00 N/R 190,824
32
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 2,500 Kern County Board of Education, California, Certificates 6/16 at 100.00 AAA $ 2,678,700
of Participation, Series 2006A, 5.000%, 6/01/31 -
MBIA Insured
3,500 Livermore Redevelopment Agency, California, Tax Allocation 8/11 at 100.00 AAA 3,641,260
Revenue Bonds, Livermore Redevelopment Project Area,
Series 2001A, 5.000%, 8/01/26 - MBIA Insured
310 Los Angeles Community Redevelopment Agency, California, 9/15 at 100.00 Aaa 329,527
Lease Revenue Bonds, Manchester Social Services Project,
Series 2005, 5.000%, 9/01/37 - AMBAC Insured
1,435 Los Angeles Community Redevelopment Agency, California, 6/07 at 100.00 BBB- 1,437,009
Tax Allocation Multifamily Housing Bonds, Grand Central
Square/Bunker Hill Project, Series 1993A, 5.750%, 12/01/13
(Alternative Minimum Tax)
1,000 Los Angeles County Metropolitan Transportation Authority, 7/13 at 100.00 AAA 1,071,960
California, Proposition A First Tier Senior Sales Tax Revenue
Bonds, Series 2003B, 5.000%, 7/01/19 - MBIA Insured
3,230 Murrieta Redevelopment Agency, California, Tax Allocation 8/35 at 100.00 AAA 3,438,787
Bonds, Series 2005, 5.000%, 8/01/35 - MBIA Insured
2,000 Oakland Redevelopment Agency, California, Subordinate Lien 3/13 at 100.00 AAA 2,192,360
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 1,047,840
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 164,534
Merged Project Area, Series 2005A, 5.000%, 9/01/35 -
XLCA Insured
190 Roseville, California, Certificates of Participation, Public 8/13 at 100.00 AAA 200,501
Facilities, Series 2003A, 5.000%, 8/01/25 - AMBAC Insured
1,500 Sacramento City Financing Authority, California, Lease Revenue No Opt. Call AAA 1,720,485
Refunding Bonds, Series 1993A, 5.400%, 11/01/20 -
MBIA Insured
3,000 Sacramento City Financing Authority, California, Lease No Opt. Call AA- 3,405,300
Revenue Refunding Bonds, Series 1993B, 5.400%, 11/01/20
San Marcos Public Facilities Authority, California, Revenue
Refunding Bonds, Series 1998:
1,500 5.800%, 9/01/18 9/08 at 101.00 Baa3 1,548,135
1,000 5.800%, 9/01/27 9/08 at 101.00 Baa3 1,031,940
2,050 Santa Barbara County, California, Certificates of Participation, 12/11 at 102.00 AAA 2,221,319
Series 2001, 5.250%, 12/01/19 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
38,135 Total Tax Obligation/Limited 40,933,288
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 3.4% (2.3% OF TOTAL INVESTMENTS)
780 Bay Area Toll Authority, California, Revenue Bonds, 4/16 at 100.00 AA 839,857
San Francisco Bay Area Toll Bridge, Series 2006,
5.000%, 4/01/31
2,000 Foothill/Eastern Transportation Corridor Agency, California, 1/10 at 100.00 BBB- 2,022,280
Toll Road Revenue Bonds, Series 1995A, 5.000%, 1/01/35
------------------------------------------------------------------------------------------------------------------------------------
2,780 Total Transportation 2,862,137
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 19.3% (12.9% 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 437,648
2,250 5.125%, 5/01/18 (Pre-refunded 5/01/12) 5/12 at 101.00 Aaa 2,435,378
1,200 California Health Facilities Financing Authority, Revenue Bonds, 12/09 at 101.00 N/R (4) 1,290,504
Cedars-Sinai Medical Center, Series 1999A, 6.125%, 12/01/30
(Pre-refunded 12/01/09)
3,000 California Infrastructure Economic Development Bank, No Opt. Call AAA 3,383,730
First Lien Revenue Bonds, San Francisco Bay Area Toll Bridge,
Series 2003A, 5.000%, 7/01/22 - FSA Insured (ETM)
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 1,106,900
1,000 5.500%, 6/01/33 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 1,099,970
33
Nuveen California Premium Income Municipal Fund (NCU) (continued)
Portfolio of INVESTMENTS February 28, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 2,250 Los Angeles Unified School District, California, General 7/13 at 100.00 AAA $ 2,435,693
Obligation Bonds, Series 2003A, 5.000%, 7/01/22
(Pre-refunded 7/01/13) - FSA Insured
2,000 Puerto Rico, General Obligation and Public Improvement 7/10 at 100.00 AAA 2,133,820
Bonds, Series 2000, 5.750%, 7/01/21 (Pre-refunded 7/01/10) -
MBIA Insured
2,000 Vista, California, Mobile Home Park Revenue Bonds, Vista 3/24 at 100.00 N/R (4) 2,122,920
Manor Mobile Home Park Project, Series 1999A,
5.750%, 3/15/29 (Pre-refunded 3/15/24)
------------------------------------------------------------------------------------------------------------------------------------
15,100 Total U.S. Guaranteed 16,446,563
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 6.5% (4.3% OF TOTAL INVESTMENTS)
275 Los Angeles Department of Water and Power, California, 7/13 at 100.00 AAA 294,789
Power System Revenue Bonds, Series 2003A-2,
5.000%, 7/01/21 - MBIA Insured
295 Merced Irrigation District, California, Electric System 9/15 at 100.00 AAA 317,302
Revenue Bonds, Series 2005, 5.125%, 9/01/31 - XLCA Insured
4,580 Sacramento Municipal Utility District, California, Electric 8/12 at 100.00 AAA 4,934,080
Revenue Refunding Bonds, Series 2002Q, 5.250%, 8/15/20 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
5,150 Total Utilities 5,546,171
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 17.7% (11.8% OF TOTAL INVESTMENTS)
1,125 Burbank, California, Wastewater System Revenue Bonds, 6/14 at 100.00 AAA 1,199,948
Series 2004A, 5.000%, 6/01/23 - AMBAC Insured
1,095 California Statewide Community Development Authority, 10/13 at 100.00 AAA 1,181,812
Water and Wastewater Revenue Bonds, Pooled Financing
Program, Series 2003A, 5.250%, 10/01/23 - FSA Insured
5,000 Culver City, California, Wastewater Facilities Revenue 9/09 at 102.00 AAA 5,323,650
Refunding Bonds, Series 1999A, 5.700%, 9/01/29 -
FGIC Insured
205 Healdsburg Public Financing Authority, California, Wastewater 4/16 at 100.00 AAA 219,440
Revenue Bonds, Series 2006, 5.000%, 4/01/36 - MBIA Insured
3,495 Orange County Sanitation District, California, Certificates 8/13 at 100.00 AAA 3,763,835
of Participation, Series 2003, 5.250%, 2/01/21 - FGIC Insured
370 Sacramento County Sanitation District Financing Authority, 6/16 at 100.00 AAA 398,520
California, Revenue Bonds, Series 2006, 5.000%, 12/01/36 -
FGIC Insured
1,000 Sacramento County Water Financing Authority, California, 6/13 at 100.00 AAA 1,059,360
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+ 1,906,182
of Participation, Water Systems Project, Series 2003,
5.500%, 7/01/33
------------------------------------------------------------------------------------------------------------------------------------
14,085 Total Water and Sewer 15,052,747
------------------------------------------------------------------------------------------------------------------------------------
$ 119,785 Total Investments (cost $120,957,385) - 150.0% 127,830,806
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (2.1)% (1,788,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.6% 2,179,764
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (50.5)% (43,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 85,222,570
====================================================================================================================
(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) 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 Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust
reflected as a financing transaction pursuant to the
provisions of SFAS No. 140.
See accompanying notes to financial statements.
34
Nuveen California Dividend Advantage Municipal Fund (NAC)
Portfolio of
INVESTMENTS February 28, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 1.9% (1.3% OF TOTAL INVESTMENTS)
$ 1,330 California County Tobacco Securitization Agency, Tobacco 6/15 at 100.00 BBB $ 1,294,529
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 5,827,068
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.250%, 6/01/33
------------------------------------------------------------------------------------------------------------------------------------
6,530 Total Consumer Staples 7,121,597
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 2.3% (1.6% OF TOTAL INVESTMENTS)
290 California Educational Facilities Authority, Revenue Bonds, 10/35 at 100.00 A3 305,080
University of Redlands, Series 2005A, 5.000%, 10/01/35
California Educational Facilities Authority, Revenue Bonds,
University of the Pacific, Series 2006:
200 5.000%, 11/01/21 11/15 at 100.00 A2 214,604
265 5.000%, 11/01/25 11/15 at 100.00 A2 282,548
615 California Statewide Community Development Authority, 10/13 at 100.00 N/R 676,180
Revenue Bonds, Notre Dame de Namur University,
Series 2003, 6.500%, 10/01/23
3,000 Long Beach Bond Financing Authority, California, Lease 11/11 at 100.00 AAA 3,233,700
Revenue Refunding Bonds, Long Beach Aquarium of the
South Pacific, Series 2001, 5.500%, 11/01/17 -
AMBAC Insured
3,500 University of California, Revenue Bonds, Multi-Purpose 5/13 at 100.00 AAA 3,772,405
Projects, Series 2003A, 5.125%, 5/15/17 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
7,870 Total Education and Civic Organizations 8,484,517
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 10.0% (6.8% OF TOTAL INVESTMENTS)
2,160 California Health Facilities Financing Authority, Health 3/13 at 100.00 A 2,267,525
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 A2 2,082,117
Cedars-Sinai Medical Center, Series 2005, 5.000%, 11/15/34
9,280 California Statewide Community Development Authority, 3/16 at 100.00 A+ 9,700,941
Revenue Bonds, Kaiser Permanante System, Series 2006,
5.000%, 3/01/41
3,095 California Statewide Community Development Authority, 8/16 at 100.00 A+ 3,326,970
Revenue Bonds, Kaiser Permanente System, Series 2001C,
5.250%, 8/01/31
8,000 Central California Joint Powers Health Finance Authority, 2/10 at 101.00 Baa2 8,405,440
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 A- 10,818,675
National Medical Center, Series 1999A, 5.250%, 4/01/31
------------------------------------------------------------------------------------------------------------------------------------
35,025 Total Health Care 36,601,668
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 8.1% (5.5% OF TOTAL INVESTMENTS)
5,145 California Statewide Community Development Authority, 8/12 at 105.00 Aaa 5,822,905
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 7,343,743
Revenue Refunding Bonds, Irvine Apartment Communities
Development, Series 1998A, 4.900%, 5/15/25
(Mandatory put 5/15/08)
5,000 Contra Costa County, California, Multifamily Housing Revenue 6/09 at 102.00 N/R 5,251,100
Bonds, Delta View Apartments Project, Series 1999C,
6.750%, 12/01/30 (Alternative Minimum Tax)
320 Independent Cities Lease Finance Authority, California, 5/16 at 100.00 N/R 331,939
Mobile Home Park Revenue Bonds, San Juan Mobile Estates,
Series 2006B, 5.850%, 5/15/41
1,725 Rohnert Park Finance Authority, California, Senior Lien Revenue 9/13 at 100.00 A+ 1,862,793
Bonds, Rancho Feliz Mobile Home Park, Series 2003A,
5.750%, 9/15/38
35
Nuveen California Dividend Advantage Municipal Fund (NAC) (continued)
Portfolio of INVESTMENTS February 28, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY (continued)
$ 1,120 Rohnert Park Finance Authority, California, Subordinate Lien 9/13 at 100.00 N/R $ 1,209,824
Revenue Bonds, Rancho Feliz Mobile Home Park, Series 2003B,
6.625%, 9/15/38
7,500 San Bernardino County Housing Authority, California, No Opt. Call A- 7,722,600
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)
------------------------------------------------------------------------------------------------------------------------------------
28,060 Total Housing/Multifamily 29,544,904
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.2% (0.2% OF TOTAL INVESTMENTS)
845 California Housing Finance Agency, Home Mortgage Revenue 2/16 at 100.00 AAA 909,735
Bonds, Series 2006H, 5.750%, 8/01/30 - FGIC Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.6% (0.4% OF TOTAL INVESTMENTS)
2,000 California Pollution Control Financing Authority, Solid Waste 1/16 at 102.00 BBB 2,097,200
Disposal Revenue Bonds, Waste Management Inc.,
Series 2002A, 5.000%, 1/01/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.4% (1.6% OF TOTAL INVESTMENTS)
8,500 Riverside County Public Financing Authority, California, 5/09 at 101.00 BBB- 8,807,275
Certificates of Participation, Air Force Village West,
Series 1999, 5.800%, 5/15/29
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 20.2% (13.7% OF TOTAL INVESTMENTS)
10,000 California State, General Obligation Bonds, Series 2007, 12/16 at 100.00 AAA 9,892,900
4.250%, 12/01/35 (WI/DD, Settling 3/01/07) - AMBAC Insured
2,000 California, General Obligation Bonds, Series 2003, 11/13 at 100.00 AA 2,165,780
5.250%, 11/01/19 - RAAI Insured
California, General Obligation Bonds, Series 2004:
5,000 5.125%, 4/01/23 4/14 at 100.00 A+ 5,371,300
4,150 5.125%, 4/01/25 4/14 at 100.00 A+ 4,447,555
California, General Obligation Refunding Bonds, Series 2002:
8,000 5.000%, 2/01/12 No Opt. Call A+ 8,469,680
4,435 6.000%, 4/01/16 - AMBAC Insured No Opt. Call AAA 5,213,653
5,000 Coast Community College District, Orange County, California, 8/16 at 100.00 AAA 5,424,000
General Obligation Bonds, Series 2006B, 5.000%, 8/01/24 -
FSA Insured
5,000 Fresno Unified School District, Fresno County, California, No Opt. Call AAA 6,175,500
General Obligation Bonds, Series 2002A, 6.000%, 8/01/26 -
MBIA Insured
3,335 Moreno Valley Unified School District, Riverside County, 8/14 at 100.00 AAA 3,640,686
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 5,536,302
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 1,801,485
General Obligation Bonds, Series 2001, 5.125%, 8/01/21 -
FSA Insured
575 Roseville Joint Union High School District, Placer County, 8/15 at 100.00 AAA 617,257
California, General Obligation Bonds, Series 2006B,
5.000%, 8/01/27 - FGIC Insured
5,000 San Diego Unified School District, San Diego County, 7/13 at 101.00 AAA 5,475,350
California, General Obligation Bonds, Series 2003E,
5.250%, 7/01/20 - FSA Insured
2,975 San Diego Unified School District, San Diego County, 7/16 at 101.00 AAA 3,039,915
California, General Obligation Bonds, Series 2006G-1,
4.500%, 7/01/29 - FSA Insured (UB)
2,865 San Ramon Valley Unified School District, Contra Costa County, 8/16 at 100.00 AAA 3,124,454
California, General Obligation Bonds, Series 2006,
5.000%, 8/01/21 - MBIA Insured
3,605 West Contra Costa Unified School District, Contra Costa 8/11 at 101.00 AAA 3,824,472
County, California, General Obligation Bonds, Series 2003B,
5.000%, 8/01/21 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
68,900 Total Tax Obligation/General 74,220,289
------------------------------------------------------------------------------------------------------------------------------------
36
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 27.9% (18.9% 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 $ 1,062,740
615 5.800%, 9/01/35 9/14 at 102.00 N/R 663,210
1,990 Brentwood Infrastructure Financing Authority, California, 9/12 at 100.00 AAA 2,110,335
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 1,191,796
1,165 5.375%, 11/01/19 - FSA Insured 11/11 at 100.00 AAA 1,250,849
3,895 California, Economic Recovery Revenue Bonds, Series 2004A, 7/14 at 100.00 AA+ 4,233,398
5.000%, 7/01/15
2,000 Capistrano Unified School District, Orange County, California, 9/13 at 100.00 N/R 2,139,120
Special Tax Bonds, Community Facilities District 90-2 -
Talega, Series 2003, 6.000%, 9/01/33
710 Capistrano Unified School District, Orange County, California, 9/15 at 100.00 AAA 763,158
Special Tax Bonds, Community Facilities District, Series 2005,
5.000%, 9/01/24 - FGIC Insured
2,135 Chino Redevelopment Agency, California, Merged Chino 9/16 at 101.00 AAA 2,304,348
Project Area Tax Allocation Bonds, 5.000%, 9/01/38 -
AMBAC Insured (UB)
3,490 Fontana, California, Senior Special Tax Refunding Bonds, 9/08 at 102.00 AAA 3,636,789
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 1,208,903
Facilities District 22, Series 2004, 6.000%, 9/01/34
3,980 Garden Grove, California, Certificates of Participation, 3/12 at 101.00 AAA 4,318,897
Financing Project, Series 2002A, 5.500%, 3/01/22 -
AMBAC Insured
2,850 Hesperia Community Redevelopment Agency, California, 9/15 at 100.00 AAA 3,019,005
Tax Allocation Bonds, Series 2005A, 5.000%, 9/01/35 -
XLCA Insured
4,500 Inglewood Redevelopment Agency, California, Tax Allocation No Opt. Call AAA 5,133,690
Refunding Bonds, Merged Area Redevelopment Project,
Series 1998A, 5.250%, 5/01/23 - AMBAC Insured
Irvine, California, Unified School District, Community Facilities
District Special Tax Bonds, Series 2006A:
345 5.000%, 9/01/26 9/16 at 100.00 N/R 354,325
795 5.125%, 9/01/36 9/16 at 100.00 N/R 820,027
675 Lammersville School District, San Joaquin County, California, 9/16 at 100.00 N/R 697,579
Community Facilities District 2002, Mountain House Special
Tax Bonds, Series 2006, 5.125%, 9/01/35
2,000 Lee Lake Water District, Riverside County, California, Special 9/13 at 102.00 N/R 2,234,780
Tax Bonds, Community Facilities District 1 of Sycamore Creek,
Series 2003, 6.500%, 9/01/24
1,985 Lincoln, California, Special Tax Bonds, Lincoln Crossing 9/13 at 102.00 N/R 2,210,913
Community Facilities District 03-1, Series 2003A,
6.500%, 9/01/25
1,360 Lincoln, California, Special Tax Bonds, Lincoln Crossing 9/13 at 102.00 N/R 1,424,042
Community Facilities District 03-1, Series 2004,
6.000%, 9/01/34
1,290 Los Angeles Community Redevelopment Agency, California, 9/15 at 100.00 Aaa 1,371,257
Lease Revenue Bonds, Manchester Social Services Project,
Series 2005, 5.000%, 9/01/37 - AMBAC Insured
5,000 Los Angeles County Metropolitan Transportation Authority, 7/08 at 101.00 AAA 5,121,750
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 3,618,990
California, Revenue Bonds, Regional Park and Open Space
District, Series 1997A, 5.000%, 10/01/16
1,000 Los Banos Redevelopment Agency, California, Project Tax 9/16 at 100.00 AA 1,051,370
Allocation Bonds, Los Banos Redevelopment Project,
Series 2006, 5.000%, 9/01/36 - RAAI Insured
1,530 Moreno Valley Unified School District, Riverside County, 3/14 at 100.00 AAA 1,623,177
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 9,752,000
Refunding Bonds, Project Area 1, Series 2001,
5.000%, 3/01/19 - MBIA Insured
37
Nuveen California Dividend Advantage Municipal Fund (NAC) (continued)
Portfolio of INVESTMENTS February 28, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
North Natomas Community Facilities District 4, Sacramento,
California, Special Tax Bonds, Series 2006D:
$ 550 5.000%, 9/01/26 3/07 at 103.00 N/R $ 564,867
250 5.000%, 9/01/33 3/07 at 103.00 N/R 256,373
3,290 Oakland Redevelopment Agency, California, Subordinate 3/13 at 100.00 AAA 3,610,117
Lien Tax Allocation Bonds, Central District Redevelopment
Project, Series 2003, 5.500%, 9/01/16 - FGIC Insured
5,600 Palm Springs Financing Authority, California, Lease Revenue 11/11 at 101.00 AAA 5,906,152
Refunding Bonds, Convention Center Project, Series 2001A,
5.000%, 11/01/22 - MBIA Insured
1,000 Palmdale Community Redevelopment Agency, California, 12/14 at 100.00 AAA 1,066,420
Tax Allocation Bonds, Merged Redevelopment Project Areas,
Series 2004, 5.000%, 12/01/24 - AMBAC Insured
8,100 Poway Redevelopment Agency, California, Tax Allocation 12/10 at 102.00 AAA 8,814,582
Refunding Bonds, Paguay Redevelopment Project, Series 2000,
5.750%, 6/15/33 - MBIA Insured
620 Rialto Redevelopment Agency, California, Tax Allocation Bonds, 9/15 at 100.00 AAA 658,136
Merged Project Area, Series 2005A, 5.000%, 9/01/35 -
XLCA Insured
1,860 Riverside Redevelopment Agency, California, Tax Allocation 8/13 at 100.00 AAA 2,003,071
Refunding Bonds, Merged Project Areas, Series 2003,
5.250%, 8/01/22 - MBIA Insured
770 Roseville, California, Certificates of Participation, Public 8/13 at 100.00 AAA 812,558
Facilities, Series 2003A, 5.000%, 8/01/25 - AMBAC Insured
2,500 Sacramento City Financing Authority, California, Lease Revenue No Opt. Call AAA 2,867,475
Refunding Bonds, Series 1993A, 5.400%, 11/01/20 -
AMBAC Insured (7)
1,150 Sacramento, California, Special Tax Bonds, North Natomas 9/14 at 100.00 N/R 1,242,828
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 2,893,460
Refunding Bonds, Civic Center Project, Series 2002B,
5.250%, 6/01/19 - AMBAC Insured
1,590 San Marcos Public Facilities Authority, California, Special 9/09 at 102.00 N/R 1,668,403
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 3,214,809
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 2,165,100
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 1,481,909
Tax Bonds, Community Facilities District 2001-1,
Series 2004A, 6.125%, 9/01/39
------------------------------------------------------------------------------------------------------------------------------------
95,435 Total Tax Obligation/Limited 102,542,708
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 18.7% (12.6% OF TOTAL INVESTMENTS)
1,430 Bay Area Toll Authority, California, Revenue Bonds, San 4/16 at 100.00 AA 1,539,738
Francisco Bay Area Toll Bridge, Series 2006, 5.000%, 4/01/31
8,150 Foothill/Eastern Transportation Corridor Agency, California, 1/10 at 101.00 BBB- 8,573,719
Toll Road Revenue Refunding Bonds, Series 1999,
5.750%, 1/15/40
8,515 Los Angeles Harbors Department, California, Revenue Refunding 8/11 at 100.00 AAA 9,047,528
Bonds, Series 2001B, 5.500%, 8/01/18 - AMBAC Insured
(Alternative Minimum Tax)
120 Palm Springs Financing Authority, California, Palm Springs 7/14 at 102.00 N/R 124,118
International Airport Revenue Bonds, Series 2006,
5.450%, 7/01/20 (Alternative Minimum Tax)
23,000 Port of Oakland, California, Revenue Bonds, Series 2000K, 5/10 at 100.00 AAA 24,338,830
5.750%, 11/01/29 - FGIC Insured (Alternative Minimum Tax) (7)
23,275 San Francisco Airports Commission, California, Revenue Bonds, 5/10 at 101.00 AAA 24,807,659
San Francisco International Airport, Second Series 2000,
Issue 24A, 5.750%, 5/01/30 - FSA Insured (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
64,490 Total Transportation 68,431,592
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 38.4% (26.0% OF TOTAL INVESTMENTS) (4)
California Department of Water Resources, Power Supply
Revenue Bonds, Series 2002A:
1,500 5.375%, 5/01/17 (Pre-refunded 5/01/12) - XLCA Insured 5/12 at 101.00 AAA 1,641,180
9,750 5.125%, 5/01/18 (Pre-refunded 5/01/12) 5/12 at 101.00 Aaa 10,553,303
38
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 15,000 California Health Facilities Financing Authority, Revenue Bonds, 12/09 at 101.00 N/R (4) $ 16,131,300
Cedars-Sinai Medical Center, Series 1999A, 6.125%, 12/01/30
(Pre-refunded 12/01/09)
8,400 California Health Facilities Financing Authority, Revenue Bonds, 10/08 at 101.00 AAA 8,694,252
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) 5,566,300
Certificates of Participation, Pride Industries and Pride
One Inc., Series 1999, 7.250%, 11/01/29 (Pre-refunded 11/01/09)
10,900 Los Angeles Unified School District, California, General 7/09 at 101.00 AAA 11,426,470
Obligation Bonds, Series 1999C, 5.250%, 7/01/24
(Pre-refunded 7/01/09) - MBIA Insured
10,845 Los Angeles Unified School District, California, General 7/12 at 100.00 AAA 11,606,211
Obligation Bonds, Series 2002E, 5.000%, 7/01/19
(Pre-refunded 7/01/12) - 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 2,664,925
4,500 5.375%, 6/01/41 (Pre-refunded 6/01/11) 6/11 at 100.00 AAA 4,818,915
5,840 Orange County Water District, California, Revenue Certificates 8/09 at 101.00 AA+ (4) 6,137,139
of Participation, Series 1999A, 5.375%, 8/15/29 (ETM)
4,000 Orange County Water District, California, Revenue Certificates 8/09 at 101.00 AA+ (4) 4,213,680
of Participation, Series 1999A, 5.375%, 8/15/29
(Pre-refunded 8/15/09)
4,000 Puerto Rico, General Obligation and Public Improvement Bonds, 7/10 at 100.00 AAA 4,267,640
Series 2000, 5.750%, 7/01/16 (Pre-refunded 7/01/10) -
MBIA Insured
22,060 San Jose Redevelopment Agency, California, Tax Allocation 8/08 at 102.00 AAA 23,012,992
Bonds, Merged Area Redevelopment Project, Series 1998,
5.250%, 8/01/29 (Pre-refunded 8/01/08) - AMBAC Insured
2,860 Tobacco Securitization Authority of Southern California, 6/12 at 100.00 AAA 3,081,936
Tobacco Settlement Asset-Backed Bonds, San Diego
County Tobacco Asset Securitization Corporation, Senior
Series 2001A, 5.250%, 6/01/27 (Pre-refunded 6/01/12)
700 University of California, Certificates of Participation, 1/10 at 101.00 Aa2 (4) 739,662
San Diego and Sacramento Campus Projects, Series 2002A,
5.250%, 1/01/22 (Pre-refunded 1/01/10)
University of California, Revenue Bonds, Multi-Purpose
Projects, Series 2002O:
10,770 5.000%, 9/01/20 (Pre-refunded 9/01/10) - FGIC Insured 9/10 at 101.00 AAA 11,363,212
11,305 5.000%, 9/01/21 (Pre-refunded 9/01/10) - FGIC Insured 9/10 at 101.00 AAA 11,927,679
2,500 Whittier, California, Health Facility Revenue Bonds, 6/12 at 101.00 A+ (4) 2,760,050
Presbyterian Intercommunity Hospital, Series 2002,
5.600%, 6/01/22 (Pre-refunded 6/01/12)
------------------------------------------------------------------------------------------------------------------------------------
132,430 Total U.S. Guaranteed 140,606,846
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 7.5% (5.1% OF TOTAL INVESTMENTS)
3,630 Imperial Irrigation District, California, Certificates 11/13 at 100.00 AAA 3,914,265
of 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 7,388,010
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 8,932,297
Power System Revenue Bonds, Series 2001A-2,
5.375%, 7/01/19 - MBIA Insured
5,500 Los Angeles Department of Water and Power, California, 7/15 at 100.00 AAA 5,892,590
Power System Revenue Bonds, Series 2005A-1,
5.000%, 7/01/31 - FSA Insured
1,270 Merced Irrigation District, California, Electric System 9/15 at 100.00 AAA 1,366,012
Revenue Bonds, Series 2005, 5.125%, 9/01/31 - XLCA Insured
------------------------------------------------------------------------------------------------------------------------------------
25,770 Total Utilities 27,493,174
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 8.5% (5.7% OF TOTAL INVESTMENTS)
9,165 California Department of Water Resources, Water System 12/11 at 100.00 AAA 9,742,028
Revenue Bonds, Central Valley Project, Series 2001W,
5.250%, 12/01/22 - FSA Insured
875 Healdsburg Public Financing Authority, California, Wastewater 4/16 at 100.00 AAA 936,635
Revenue Bonds, Series 2006, 5.000%, 4/01/36 - MBIA Insured
39
Nuveen California Dividend Advantage Municipal Fund (NAC) (continued)
Portfolio of INVESTMENTS February 28, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 2,500 Indio Water Authority, California, Water Revenue Bonds, 4/16 at 100.00 AAA $ 2,691,850
Series 2006, 5.000%, 4/01/31 - AMBAC Insured (7)
835 Marina Coast Water District, California, Enterprise Certificate 6/16 at 100.00 AAA 896,022
of Participation, Series 2006, 5.000%, 6/01/31 - MBIA Insured
8,250 Pico Rivera Water Authority, California, Revenue Bonds, 12/11 at 102.00 N/R 8,919,323
Series 2001A, 6.250%, 12/01/32
2,250 Sacramento County Sanitation District Financing Authority, 6/16 at 100.00 AAA 2,428,853
California, Revenue Bonds, Series 2006, 5.000%, 12/01/31 -
FGIC Insured
5,115 San Francisco City and County Public Utilities Commission, 11/12 at 100.00 AAA 5,448,240
California, Water Revenue Bonds, Series 2002A,
5.000%, 11/01/18 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
28,990 Total Water and Sewer 31,062,951
------------------------------------------------------------------------------------------------------------------------------------
$ 504,845 Total Long-Term Investments (cost $506,528,739) - 146.7% 537,924,456
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 1.0% (0.6% OF TOTAL INVESTMENTS)
3,500 California Department of Water Resources, Power Supply A-1+ 3,500,000
Revenue Bonds, Variable Rate Demand Obligations,
Series 2002C-7, 3.550%, 5/01/22 - FSA Insured (5)
=============-----------------------------------------------------------------------------------------------------------------------
Total Short-Term Investments (cost $3,500,000) 3,500,000
--------------------------------------------------------------------------------------------------------------------
Total Investments (cost $510,028,739) - 147.7% 541,424,456
--------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (0.9)% (3,403,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.0% 3,449,984
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (47.8)% (175,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 366,471,440
====================================================================================================================
FUTURES CONTRACTS OUTSTANDING AT FEBRUARY 28, 2007:
UNREALIZED
CONTRACT NUMBER OF CONTRACT VALUE AT APPRECIATION
TYPE POSITION CONTRACTS EXPIRATION FEBRUARY 28, 2007 (DEPRECIATION)
------------------------------------------------------------------------------------------------------------------------------------
U.S. 10-Year Treasury Note Long 49 6/07 $5,321,094 $43,493
====================================================================================================================================
FORWARD SWAPS OUTSTANDING AT FEBRUARY 28, 2007:
FUND FIXED RATE UNREALIZED
NOTIONAL PAY/RECEIVE FLOATING RATE FIXED RATE PAYMENT EFFECTIVE TERMINATION APPRECIATION
COUNTERPARTY AMOUNT FLOATING RATE INDEX (ANNUALIZED) FREQUENCY DATE (6) DATE (DEPRECIATION)
------------------------------------------------------------------------------------------------------------------------------------
JPMorgan $44,000,000 Receive 3-month USD-LIBOR 5.547% Semi-Annually 7/10/07 7/10/11 $ (961,133)
JPMorgan 14,500,000 Pay 3-month USD-LIBOR 5.813 Semi-Annually 7/10/07 7/10/27 1,022,757
Morgan Stanley 24,500,000 Receive 3-month USD-LIBOR 5.560 Semi-Annually 7/10/07 7/10/12 (633,064)
Morgan Stanley 31,200,000 Pay 3-month USD-LIBOR 5.691 Semi-Annually 7/10/07 7/10/37 2,095,331
------------------------------------------------------------------------------------------------------------------------------------
$1,523,891
====================================================================================================================================
USD-LIBOR (United States Dollar-London Inter-Bank Offered Rate)
(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) 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.
(6) Effective date represents the date on which both the
Fund and counterparty commence interest payment
accruals on each forward swap contract.
(7) Portion of investments, with an aggregate market value
of $93,333 has been pledged to collateralize the net
payment obligations under futures contracts.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
(UB) Underlying bond of an inverse floating rate trust
reflected as a financing transaction pursuant to the
provisions of SFAS No. 140.
See accompanying notes to financial statements.
40
Nuveen California Dividend Advantage Municipal Fund 2 (NVX)
Portfolio of
INVESTMENTS February 28, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 4.0% (2.7% OF TOTAL INVESTMENTS)
$ 825 California County Tobacco Securitization Agency, Tobacco 6/15 at 100.00 BBB $ 802,997
Settlement Asset-Backed Bonds, Sonoma County Tobacco
Securitization Corporation, Series 2005, 4.250%, 6/01/21
4,625 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 Baa3 4,818,001
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 3,585,888
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.250%, 6/01/33
------------------------------------------------------------------------------------------------------------------------------------
8,650 Total Consumer Staples 9,206,886
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 15.0% (10.1% OF TOTAL INVESTMENTS)
2,000 California Educational Facilities Authority, Revenue Bonds, 6/11 at 101.00 AAA 2,126,380
Stanford University, Series 2001Q, 5.250%, 12/01/32
180 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 A3 189,360
University of Redlands, Series 2005A, 5.000%, 10/01/35
California Educational Facilities Authority, Revenue Bonds,
University of the Pacific, Series 2006:
125 5.000%, 11/01/21 11/15 at 100.00 A2 134,128
165 5.000%, 11/01/25 11/15 at 100.00 A2 175,926
6,375 California Educational Facilities Authority, Student Loan 3/08 at 102.00 Aaa 6,584,674
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 9,629,472
10,570 5.375%, 10/01/18 - FSA Insured 10/12 at 100.00 AAA 11,426,064
620 California Statewide Community Development Authority, 10/13 at 100.00 N/R 681,678
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 3,190,470
Revenue Refunding Bonds, Long Beach Aquarium of the
South Pacific, Series 2001, 5.250%, 11/01/30 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
31,915 Total Education and Civic Organizations 34,138,152
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 11.7% (7.9% OF TOTAL INVESTMENTS)
2,000 California Health Facilities Financing Authority, Revenue Bonds, 4/12 at 100.00 BBB+ 2,154,380
Casa Colina Inc., Series 2001, 6.000%, 4/01/22
1,240 California Health Facilities Financing Authority, Revenue Bonds, 11/15 at 100.00 A2 1,297,400
Cedars-Sinai Medical Center, Series 2005, 5.000%, 11/15/34
500 California Infrastructure Economic Development Bank, Revenue 8/11 at 102.00 A+ 532,810
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 1,023,072
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+ 2,372,757
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 2,701,650
Hospital Revenue Bonds, Monterey Peninsula Hospital,
Series 2003B, 5.250%, 6/01/18 - FSA Insured
5,775 California Statewide Community Development Authority, 3/16 at 100.00 A+ 6,036,954
Revenue Bonds, Kaiser Permanante System, Series 2006,
5.000%, 3/01/41
1,925 California Statewide Community Development Authority, 8/16 at 100.00 A+ 2,069,279
Revenue Bonds, Kaiser Permanente System, Series 2001C,
5.250%, 8/01/31
41
Nuveen California Dividend Advantage Municipal Fund 2 (NVX) (continued)
Portfolio of INVESTMENTS February 28, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 5,355 California Statewide Community Development Authority, No Opt. Call A+ $ 5,459,797
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 3,152,040
Certificates of Participation, Community Hospitals of Central
California Obligated Group, Series 2000, 6.000%, 2/01/30
------------------------------------------------------------------------------------------------------------------------------------
25,435 Total Health Care 26,800,139
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 9.9% (6.7% OF TOTAL INVESTMENTS)
2,450 ABAG Finance Authority for Non-Profit Corporations, California, No Opt. Call BBB 2,528,278
Multifamily Housing Revenue Refunding Bonds, United
Dominion/2000 Post Apartments, Series 2000B,
6.250%, 8/15/30 (Mandatory put 8/15/08)
3,430 California Statewide Community Development Authority, 8/12 at 105.00 Aaa 3,881,937
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 6,355,254
Multifamily Housing Revenue Refunding Bonds, Claremont
Village Apartments, Series 2001D, 5.500%, 6/01/31
(Mandatory put 6/01/16) (Alternative Minimum Tax)
4,000 Daly City Housing Development Finance Agency, California, 12/13 at 102.00 A- 4,422,960
Mobile Home Park Revenue Bonds, Franciscan Mobile Home
Park Project, Series 2002A, 5.850%, 12/15/32
205 Independent Cities Lease Finance Authority, California, 5/16 at 100.00 N/R 212,649
Mobile Home Park Revenue Bonds, San Juan Mobile Estates,
Series 2006B, 5.850%, 5/15/41
1,055 Rohnert Park Finance Authority, California, Senior Lien Revenue 9/13 at 100.00 A+ 1,139,273
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 756,140
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 3,392,252
Park Revenue Bonds, Rancho del Sol and Grandview,
Series 2001A, 6.750%, 5/15/36
------------------------------------------------------------------------------------------------------------------------------------
20,847 Total Housing/Multifamily 22,688,743
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.5% (0.4% OF TOTAL INVESTMENTS)
525 California Housing Finance Agency, Home Mortgage Revenue 2/16 at 100.00 AAA 565,220
Bonds, Series 2006H, 5.750%, 8/01/30 - FGIC Insured
(Alternative Minimum Tax)
640 California Rural Home Mortgage Finance Authority, 6/11 at 102.00 AAA 649,632
Mortgage-Backed Securities Program Single Family
Mortgage Revenue Bonds, Series 2001A, 5.650%, 12/01/31
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
1,165 Total Housing/Single Family 1,214,852
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.6% (0.4% OF TOTAL INVESTMENTS)
1,250 California Pollution Control Financing Authority, Solid Waste 1/16 at 102.00 BBB 1,310,750
Disposal Revenue Bonds, Waste Management Inc.,
Series 2002A, 5.000%, 1/01/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 0.7% (0.5% OF TOTAL INVESTMENTS)
1,550 California Health Facilities Financing Authority, Cal-Mortgage 1/13 at 100.00 A+ 1,625,547
Insured Revenue Bonds, Northern California Retired Officers
Community Corporation - Paradise Valley Estates, Series 2002,
5.125%, 1/01/22
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 14.3% (9.6% OF TOTAL INVESTMENTS)
1,000 California, General Obligation Bonds, Series 2004, 5.125%, 2/01/27 2/14 at 100.00 A+ 1,068,370
5,000 California, General Obligation Refunding Bonds, Series 2002, No Opt. Call A+ 5,293,550
5.000%, 2/01/12
3,615 Colton Joint Unified School District, San Bernardino County, 8/12 at 102.00 AAA 3,970,680
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 3,193,053
3,300 5.000%, 8/01/22 - FGIC Insured 8/12 at 100.00 AAA 3,475,857
1,325 Golden West Schools Financing Authority, California, General No Opt. Call AAA 1,552,847
Obligation Revenue Refunding Bonds, School District Program,
Series 1998A, 6.650%, 8/01/13 - MBIA Insured
42
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 3,910 Los Angeles Unified School District, Los Angeles County, 7/16 at 100.00 AAA $ 4,128,725
California, General Obligation Bonds, Series 2006B,
4.750%, 7/01/25 - FGIC Insured (UB)
2,000 Puerto Rico, General Obligation and Public Improvement Bonds, No Opt. Call AAA 2,342,820
Series 2001A, 5.500%, 7/01/20 - MBIA Insured
355 Roseville Joint Union High School District, Placer County, 8/15 at 100.00 AAA 381,089
California, General Obligation Bonds, Series 2006B,
5.000%, 8/01/27 - FGIC Insured
2,811 San Diego Unified School District, San Diego County, 7/16 at 101.00 AAA 2,872,336
California, General Obligation Bonds, Series 2006F-1,
4.500%, 7/01/29 - FSA Insured (UB)
4,050 Santa Rosa High School District, Sonoma County, California, 5/11 at 101.00 AAA 4,309,119
General Obligation Bonds, Series 2001, 5.300%, 5/01/26 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
30,371 Total Tax Obligation/General 32,588,446
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 30.6% (20.7% 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 690,781
385 5.800%, 9/01/35 9/14 at 102.00 N/R 415,180
4,900 California State Public Works Board, Lease Revenue Bonds, 12/13 at 100.00 A 5,418,812
Department of Corrections, Series 2003C, 5.500%, 6/01/16
2,105 California, Economic Recovery Revenue Bonds, Series 2004A, 7/14 at 100.00 AA+ 2,287,882
5.000%, 7/01/15
1,200 Capistrano Unified School District, Orange County, California, 9/13 at 100.00 N/R 1,283,472
Special Tax Bonds, Community Facilities District 90-2 -
Talega, Series 2003, 6.000%, 9/01/33
435 Capistrano Unified School District, Orange County, California, 9/15 at 100.00 AAA 467,568
Special Tax Bonds, Community Facilities District, Series 2005,
5.000%, 9/01/24 - FGIC Insured
1,330 Chino Redevelopment Agency, California, Merged Chino Project 9/16 at 101.00 AAA 1,435,496
Area Tax Allocation Bonds, 5.000%, 9/01/38 -
AMBAC Insured (UB)
1,500 Coachella Valley Unified School District, Riverside County, 9/16 at 100.00 Aaa 1,606,020
California, Certificates of Participation, Series 2007,
5.000%, 9/01/36 - AMBAC Insured
4,845 Encinitas Public Financing Authority, California, Lease Revenue 4/08 at 102.00 AAA 5,009,585
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 805,935
Facilities District 22, Series 2004, 6.000%, 9/01/34
1,785 Hawthorne Community Redevelopment Agency, California, 9/16 at 100.00 AAA 1,948,952
Project Area 2 Tax Allocation Bonds, Series 2006,
5.250%, 9/01/36 - XLCA Insured
4,000 Industry Urban Development Agency, California, Tax Allocation 5/07 at 101.50 AAA 4,072,080
Refunding Bonds, Civic, Recreational and Industrial
Redevelopment Project 1, Series 2002, 5.500%, 5/01/19 -
MBIA Insured
Irvine, California, Unified School District, Community Facilities
District Special Tax Bonds, Series 2006A:
215 5.000%, 9/01/26 9/16 at 100.00 N/R 220,811
495 5.125%, 9/01/36 9/16 at 100.00 N/R 510,583
2,000 Lake Elsinore Public Finance Authority, California, 10/13 at 102.00 N/R 2,184,200
Local Agency Revenue Refunding Bonds, Series 2003H,
6.000%, 10/01/20
415 Lammersville School District, San Joaquin County, California, 9/16 at 100.00 N/R 428,882
Community Facilities District 2002, Mountain House Special
Tax Bonds, Series 2006, 5.125%, 9/01/35
1,265 Lee Lake Water District, Riverside County, California, 9/13 at 102.00 N/R 1,413,498
Special Tax Bonds, Community Facilities District 1 of
Sycamore Creek, Series 2003, 6.500%, 9/01/24
1,195 Lincoln, California, Special Tax Bonds, Lincoln Crossing 9/13 at 102.00 N/R 1,331,003
Community Facilities District 03-1, Series 2003A,
6.500%, 9/01/25
905 Lincoln, California, Special Tax Bonds, Lincoln Crossing 9/13 at 102.00 N/R 947,616
Community Facilities District 03-1, Series 2004,
6.000%, 9/01/34
800 Los Angeles Community Redevelopment Agency, California, 9/15 at 100.00 Aaa 850,392
Lease Revenue Bonds, Manchester Social Services Project,
Series 2005, 5.000%, 9/01/37 - AMBAC Insured
43
Nuveen California Dividend Advantage Municipal Fund 2 (NVX) (continued)
Portfolio of INVESTMENTS February 28, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 8,000 Los Angeles County Metropolitan Transportation Authority, 7/08 at 101.00 AAA $ 8,194,800
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 5,468,250
California, Proposition C Second Senior Lien Sales Tax Revenue
Refunding Bonds, Series 2003A, 5.250%, 7/01/13 - MBIA Insured
500 North Natomas Community Facilities District 4, Sacramento, 3/07 at 103.00 N/R 512,745
California, Special Tax Bonds, Series 2006D, 5.000%, 9/01/33
3,295 Oakland Redevelopment Agency, California, Subordinate Lien 3/13 at 100.00 AAA 3,615,604
Tax Allocation Bonds, Central District Redevelopment Project,
Series 2003, 5.500%, 9/01/16 - FGIC Insured
2,000 Orange County, California, Special Tax Bonds, Community 8/11 at 101.00 N/R 2,079,960
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- 2,434,160
Appropriation Bonds, Series 2002E, 6.000%, 8/01/26
385 Rialto Redevelopment Agency, California, Tax Allocation Bonds, 9/15 at 100.00 AAA 408,681
Merged Project Area, Series 2005A, 5.000%, 9/01/35 -
XLCA Insured
6,000 Riverside County Redevelopment Agency, California, Tax 10/11 at 102.00 AAA 6,443,040
Allocation Bonds, Jurupa Valley Project Area, Series 2001,
5.250%, 10/01/35 - AMBAC Insured
475 Roseville, California, Certificates of Participation, Public 8/13 at 100.00 AAA 501,253
Facilities, Series 2003A, 5.000%, 8/01/25 - AMBAC Insured
700 Sacramento, California, Special Tax Bonds, North Natomas 9/14 at 100.00 N/R 756,504
Community Facilities District 4, Series 2003C, 6.000%, 9/01/33
970 San Marcos Public Facilities Authority, California, Special 9/09 at 102.00 N/R 1,017,831
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 1,628,899
Bonds, Project Areas 2 and 3, Series 2005C, 5.000%, 8/01/35 -
AMBAC Insured
1,930 West Patterson Financing Authority, California, Special Tax 9/13 at 103.00 N/R 2,181,923
Bonds, Community Facilities District 01-1, Series 2003B,
6.750%, 9/01/30
500 West Patterson Financing Authority, California, Special Tax 9/13 at 102.00 N/R 541,275
Bonds, Community Facilities District 01-1, Series 2004B,
6.000%, 9/01/39
850 West Patterson Financing Authority, California, Special Tax 9/13 at 103.00 N/R 933,054
Bonds, Community Facilities District 2001-1, Series 2004A,
6.125%, 9/01/39
------------------------------------------------------------------------------------------------------------------------------------
65,310 Total Tax Obligation/Limited 70,046,727
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 10.1% (6.8% OF TOTAL INVESTMENTS)
1,930 Bay Area Toll Authority, California, Revenue Bonds, 4/16 at 100.00 AA 2,078,108
San Francisco Bay Area Toll Bridge, Series 2006,
5.000%, 4/01/31
7,000 Foothill/Eastern Transportation Corridor Agency, California, 1/14 at 101.00 BBB- 6,559,910
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 5,861,402
5.000%, 11/01/16 - MBIA Insured (Alternative Minimum Tax) (6)
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 2,589,141
2,555 5.250%, 5/01/19 - FGIC Insured (Alternative Minimum Tax) 5/13 at 100.00 AAA 2,718,009
1,000 San Francisco Airports Commission, California, Revenue 5/13 at 100.00 AAA 1,073,290
Bonds, 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 2,114,740
Refunding Bonds, San Francisco International Airport, Second
Series 2002, Issue 28A, 5.250%, 5/01/17 - MBIA Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
22,500 Total Transportation 22,994,600
------------------------------------------------------------------------------------------------------------------------------------
44
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 30.8% (20.7% OF TOTAL INVESTMENTS) (4)
$ 9,000 Anitoch Area Public Facilities Financing Agency, California, 8/11 at 100.00 AAA $ 9,630,720
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 6,494,340
Revenue Bonds, Series 2002A, 5.125%, 5/01/18
(Pre-refunded 5/01/12)
7,530 Los Angeles Unified School District, California, General 7/10 at 100.00 AAA 7,972,463
Obligation Bonds, Series 2000D, 5.375%, 7/01/25
(Pre-refunded 7/01/10) - FGIC Insured
10,840 Los Angeles Unified School District, California, General 7/12 at 100.00 AAA 11,600,860
Obligation Bonds, Series 2002E, 5.000%, 7/01/19
(Pre-refunded 7/01/12) - MBIA Insured
1,250 Los Angeles Unified School District, California, General 7/13 at 100.00 AAA 1,370,775
Obligation Bonds, Series 2003A, 5.250%, 7/01/20
(Pre-refunded 7/01/13) - FSA Insured
1,375 Lucia Mar Unified School District, San Luis Obispo County, 8/14 at 100.00 Aaa 1,522,854
California, General Obligation Bonds, Series 2004A,
5.250%, 8/01/21 (Pre-refunded 8/01/14) - FGIC Insured
3,000 Northern California Tobacco Securitization Authority, Tobacco 6/11 at 100.00 AAA 3,212,610
Settlement Asset-Backed Bonds, Series 2001A,
5.375%, 6/01/41 (Pre-refunded 6/01/11)
12,090 Santa Clara Valley Transportation Authority, California, 6/11 at 100.00 AAA 12,788,802
Sales Tax Revenue Bonds, Series 2001A, 5.000%, 6/01/25
(Pre-refunded 6/01/11) - MBIA Insured
1,160 Saugus Union School District, Los Angeles County, California, 8/12 at 100.00 AAA 1,242,604
General Obligation Bonds, Series 2002A, 5.000%, 8/01/21
(Pre-refunded 8/01/12) - FGIC Insured
6,200 Southwestern Community College District, San Diego County, 8/11 at 101.00 AAA 6,719,064
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 2,957,586
California, General Obligation Bonds, Series 2004,
5.000%, 8/01/21 (Pre-refunded 8/01/14) - FGIC Insured
2,800 Tobacco Securitization Authority of Southern California, 6/12 at 100.00 AAA 3,050,516
Tobacco Settlement Asset-Backed Bonds, San Diego County
Tobacco Asset Securitization Corporation, Senior Series 2001A,
5.500%, 6/01/36 (Pre-refunded 6/01/12)
1,500 Whittier, California, Health Facility Revenue Bonds, 6/12 at 101.00 A+ (4) 1,656,030
Presbyterian Intercommunity Hospital, Series 2002,
5.600%, 6/01/22 (Pre-refunded 6/01/12)
------------------------------------------------------------------------------------------------------------------------------------
65,455 Total U.S. Guaranteed 70,219,224
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 4.8% (3.2% OF TOTAL INVESTMENTS)
5,000 Anaheim Public Finance Authority, California, Second Lien 10/14 at 100.00 AAA 5,465,450
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 803,970
1,000 5.000%, 7/01/23 - MBIA Insured 7/13 at 100.00 AAA 1,060,070
500 Los Angeles Department of Water and Power, California, 7/15 at 100.00 AAA 535,690
Power System Revenue Bonds, Series 2005A-1,
5.000%, 7/01/31 - FSA Insured
790 Merced Irrigation District, California, Electric System Revenue 9/15 at 100.00 AAA 849,724
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 2,171,940
Series 2003A, 5.250%, 7/01/20 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
10,040 Total Utilities 10,886,844
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 15.3% (10.3% OF TOTAL INVESTMENTS)
4,900 East Bay Municipal Utility District, Alameda and Contra Costa 6/11 at 100.00 AAA 5,103,448
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 2,833,416
Certificates of Participation, Series 2004A, 5.000%, 3/01/20 -
FGIC Insured
545 Healdsburg Public Financing Authority, California, Wastewater 4/16 at 100.00 AAA 583,390
Revenue Bonds, Series 2006, 5.000%, 4/01/36 - MBIA Insured
3,365 Hollister Joint Powers Financing Authority, California, 6/16 at 100.00 AAA 3,597,488
Wastewater Revenue Bonds, Series 2006, 5.000%, 6/01/37 -
FSA Insured
45
Nuveen California Dividend Advantage Municipal Fund 2 (NVX) (continued)
Portfolio of INVESTMENTS February 28, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 1,800 Pomona Public Finance Authority, California, Revenue Bonds, 5/17 at 100.00 AAA $ 1,934,352
Water Facilities Project, Series 2007AY, 5.000%, 5/01/37 -
AMBAC Insured
750 Sacramento County Sanitation District Financing Authority, 6/16 at 100.00 AAA 809,618
California, Revenue Bonds, Series 2006, 5.000%, 12/01/31 -
FGIC Insured
1,700 San Buenaventura, California, Wastewater Revenue 3/14 at 100.00 AAA 1,803,530
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 7,315,860
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 10,840,900
California, Clean Water Revenue Refunding Bonds,
Series 2003A, 5.250%, 10/01/20 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
32,600 Total Water and Sewer 34,822,002
------------------------------------------------------------------------------------------------------------------------------------
$ 317,088 Total Investments (cost $320,795,521) - 148.3% 338,542,912
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (2.3)% (5,363,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.2% 5,057,185
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (48.2)% (110,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 228,237,097
====================================================================================================================
FORWARD SWAPS OUTSTANDING AT FEBRUARY 28, 2007:
FUND FIXED RATE UNREALIZED
NOTIONAL PAY/RECEIVE FLOATING RATE FIXED RATE PAYMENT EFFECTIVE TERMINATION APPRECIATION
COUNTERPARTY AMOUNT FLOATING RATE INDEX (ANNUALIZED) FREQUENCY DATE (5) DATE (DEPRECIATION)
------------------------------------------------------------------------------------------------------------------------------------
Goldman Sachs $38,500,000 Receive 3-month USD-LIBOR 5.681% Semi-Annually 7/27/07 7/27/12 $(1,196,283)
JPMorgan 12,000,000 Receive 3-month USD-LIBOR 5.716 Semi-Annually 7/27/07 7/27/14 (480,020)
JPMorgan 6,500,000 Pay 3-month USD-LIBOR 5.869 Semi-Annually 7/27/07 7/27/34 578,917
Morgan Stanley 13,700,000 Pay 3-month USD-LIBOR 5.811 Semi-Annually 7/27/07 7/27/24 904,902
Morgan Stanley 18,500,000 Pay 3-month USD-LIBOR 5.816 Semi-Annually 7/27/07 7/27/29 1,371,890
------------------------------------------------------------------------------------------------------------------------------------
$ 1,179,406
====================================================================================================================================
USD-LIBOR (United States Dollar-London Inter-Bank Offered Rate)
(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) 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) Effective date represents the date on which both the
Fund and counterparty commence interest payment
accruals on each forward swap contract.
(6) Portion of the investment, with an aggregate market
value of $1,080,975, has been pledged to collateralize
the net payment obligations under forward swap
contracts.
N/R Not rated.
(UB) Underlying bond of an inverse floating rate trust
reflected as a financing transaction pursuant to the
provisions of SFAS No. 140.
See accompanying notes to financial statements.
46
Nuveen California Dividend Advantage Municipal Fund 3 (NZH)
Portfolio of
INVESTMENTS February 28, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.2% (1.5% OF TOTAL INVESTMENTS)
$ 1,340 California County Tobacco Securitization Agency, Tobacco 6/15 at 100.00 BBB $ 1,304,262
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 6,835,599
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.250%, 6/01/33
------------------------------------------------------------------------------------------------------------------------------------
7,440 Total Consumer Staples 8,139,861
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 5.9% (3.8% OF TOTAL INVESTMENTS)
290 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 A3 305,080
University of Redlands, Series 2005A, 5.000%, 10/01/35
California Educational Facilities Authority, Revenue Bonds,
University of the Pacific, Series 2006:
200 5.000%, 11/01/21 11/15 at 100.00 A2 214,604
270 5.000%, 11/01/25 11/15 at 100.00 A2 287,879
3,825 California Educational Facilities Authority, Student Loan 3/08 at 102.00 Aaa 3,950,804
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 3,883,068
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 681,678
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 7,988,877
Auxiliary Organization Student Housing Revenue Bonds,
Series 2001, 5.000%, 9/01/26 - MBIA Insured
4,000 University of California, Revenue Bonds, Multi-Purpose Projects, 5/13 at 100.00 AAA 4,235,960
Series 2003A, 5.000%, 5/15/23 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
20,400 Total Education and Civic Organizations 21,547,950
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 15.7% (10.2% 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+ 4,308,760
2,000 6.125%, 4/01/32 4/12 at 100.00 BBB+ 2,155,760
2,020 California Health Facilities Financing Authority, Revenue Bonds, 11/15 at 100.00 A2 2,113,506
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+ 9,590,580
Bonds, Kaiser Hospital Assistance LLC, Series 2001A,
5.550%, 8/01/31
6,525 California Statewide Community Development Authority, No Opt. Call A+ 7,195,118
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 6,970,257
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 8,056,298
Insured Mortgage Hospital Revenue Bonds, Mission
Community Hospital, Series 2001, 5.375%, 11/01/21
9,425 California Statewide Community Development Authority, 3/16 at 100.00 A+ 9,852,518
Revenue Bonds, Kaiser Permanante System, Series 2006,
5.000%, 3/01/41
3,145 California Statewide Community Development Authority, 8/16 at 100.00 A+ 3,380,718
Revenue Bonds, Kaiser Permanente System, Series 2001C,
5.250%, 8/01/31
47
Nuveen California Dividend Advantage Municipal Fund 3 (NZH) (continued)
Portfolio of INVESTMENTS February 28, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
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 $ 1,863,191
1,740 6.000%, 2/01/30 2/10 at 101.00 Baa2 1,828,183
------------------------------------------------------------------------------------------------------------------------------------
53,740 Total Health Care 57,314,889
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 10.0% (6.5% OF TOTAL INVESTMENTS)
4,000 ABAG Finance Authority for Non-Profit Corporations, California, No Opt. Call BBB 4,127,800
Multifamily Housing Revenue Refunding Bonds, United
Dominion/2000 Post Apartments, Series 2000B, 6.250%, 8/15/30
(Mandatory put 8/15/08)
4,750 ABAG Finance Authority for Non-Profit Corporations, No Opt. Call BBB 4,912,830
California, Multifamily Housing Revenue Refunding Bonds,
United Dominion/The Highlands of Marin Apartments,
Series 2000A, 6.400%, 8/15/30 (Mandatory put 8/15/08)
(Alternative Minimum Tax)
5,140 California Statewide Community Development Authority, 8/12 at 105.00 Aaa 5,817,246
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- 2,198,400
Mobile Home Park Revenue Bonds, Franciscan Mobile Home
Park Project, Series 2002A, 5.800%, 12/15/25
325 Independent Cities Lease Finance Authority, California, 5/16 at 100.00 N/R 337,126
Mobile Home Park Revenue Bonds, San Juan Mobile Estates,
Series 2006B, 5.850%, 5/15/41
1,735 Rohnert Park Finance Authority, California, Senior Lien 9/13 at 100.00 A+ 1,873,592
Revenue Bonds, Rancho Feliz Mobile Home Park,
Series 2003A, 5.750%, 9/15/38
1,125 Rohnert Park Finance Authority, California, Subordinate Lien 9/13 at 100.00 N/R 1,215,225
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 3,968,690
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, No Opt. Call A- 7,722,600
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 1,310,188
2,880 5.450%, 2/20/43 (Alternative Minimum Tax) 8/11 at 102.00 AAA 3,010,032
------------------------------------------------------------------------------------------------------------------------------------
34,315 Total Housing/Multifamily 36,493,729
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.3% (0.2% OF TOTAL INVESTMENTS)
860 California Housing Finance Agency, Home Mortgage Revenue 2/16 at 100.00 AAA 925,885
Bonds, Series 2006H, 5.750%, 8/01/30 - FGIC Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.6% (0.4% OF TOTAL INVESTMENTS)
2,000 California Pollution Control Financing Authority, Solid Waste 1/16 at 102.00 BBB 2,097,200
Disposal Revenue Bonds, Waste Management Inc.,
Series 2002A, 5.000%, 1/01/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.5% (1.0% OF TOTAL INVESTMENTS)
2,450 California Health Facilities Financing Authority, Cal-Mortgage 1/13 at 100.00 A+ 2,569,413
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+ 1,575,030
1,315 5.250%, 3/01/32 3/12 at 101.00 A+ 1,382,867
------------------------------------------------------------------------------------------------------------------------------------
5,265 Total Long-Term Care 5,527,310
------------------------------------------------------------------------------------------------------------------------------------
48
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 24.3% (15.8% OF TOTAL INVESTMENTS)
$ 6,000 California State, General Obligation Bonds, Series 2007, 12/16 at 100.00 AAA $ 5,935,740
4.250%, 12/01/35 (WI/DD, Settling 3/01/07) - AMBAC Insured
9,335 California, General Obligation Bonds, Series 2002, No Opt. Call AAA 10,949,395
6.000%, 2/01/16 - FSA Insured
1,750 California, General Obligation Bonds, Series 2004, 5.125%, 2/01/27 2/14 at 100.00 A+ 1,869,648
California, General Obligation Refunding Bonds, Series 2002:
8,450 5.000%, 2/01/12 No Opt. Call A+ 8,946,100
2,780 6.000%, 4/01/16 - AMBAC Insured No Opt. Call AAA 3,268,085
10 California, General Obligation Veterans Welfare Bonds, 6/07 at 102.00 AA- 10,192
Series 1997BJ, 5.500%, 12/01/18 (Alternative Minimum Tax)
14,300 California, General Obligation Veterans Welfare Bonds, 6/07 at 101.00 AAA 14,423,551
Series 2001BZ, 5.350%, 12/01/21 - MBIA Insured (Alternative
Minimum Tax)
3,000 Contra Costa County Community College District, California, 8/12 at 100.00 AAA 3,159,870
General Obligation Bonds, Series 2002, 5.000%, 8/01/23 -
FGIC Insured
2,500 Fullerton Joint Union High School District, Orange County, 8/12 at 100.00 Aaa 2,614,850
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 2,396,188
General Obligation Bonds, Series 2002, 5.125%, 8/01/22 -
FGIC Insured
870 Puerto Rico, General Obligation and Public Improvement Bonds, 7/11 at 100.00 AAA 909,959
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 2,895,474
5,000 5.000%, 8/01/24 - FSA Insured 8/15 at 100.00 AAA 5,386,000
575 Roseville Joint Union High School District, Placer County, 8/15 at 100.00 AAA 617,257
California, General Obligation Bonds, Series 2006B,
5.000%, 8/01/27 - FGIC Insured
10,810 San Diego Unified School District, San Diego County, 7/11 at 102.00 AAA 11,570,808
California, General Obligation Bonds, Election of 1998,
Series 2001C, 5.000%, 7/01/26 - FSA Insured
4,000 San Diego Unified School District, San Diego County, California, 7/12 at 101.00 AAA 4,339,800
General Obligation Bonds, Election of 1998, Series 2002D,
5.250%, 7/01/21 - FGIC Insured
4,569 San Diego Unified School District, San Diego County, 7/16 at 101.00 AAA 4,668,695
California, General Obligation Bonds, Series 2006F-1,
4.500%, 7/01/29 - FSA Insured (UB)
2,715 San Jose-Evergreen Community College District, Santa Clara 9/15 at 100.00 AAA 2,922,345
County, California, General Obligation Bonds, Series 2005A,
5.000%, 9/01/25 - MBIA Insured
1,630 West Contra Costa Unified School District, Contra Costa 8/11 at 101.00 AAA 1,716,602
County, California, General Obligation Bonds, Series 2003C,
5.000%, 8/01/22 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
83,229 Total Tax Obligation/General 88,600,559
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 41.5% (27.2% OF TOTAL INVESTMENTS)
4,000 Beaumont Financing Authority, California, Local Agency 9/12 at 102.00 N/R 4,476,560
Revenue Bonds, Series 2002A, 6.750%, 9/01/25
7,135 Brentwood Infrastructure Financing Authority, Contra Costa 11/11 at 100.00 AAA 7,479,478
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 9,079,275
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 3,607,883
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 4,182,680
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 4,775,865
Department of Mental Health, Hospital Addition, Series 2001A,
5.000%, 12/01/26 - AMBAC Insured
2,815 California, Economic Recovery Revenue Bonds, Series 2004A, 7/14 at 100.00 AA+ 3,059,567
5.000%, 7/01/15
49
Nuveen California Dividend Advantage Municipal Fund 3 (NZH) (continued)
Portfolio of INVESTMENTS February 28, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
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 $ 1,875,790
550 6.000%, 9/01/33 9/13 at 100.00 N/R 588,258
715 Capistrano Unified School District, Orange County, California, 9/15 at 100.00 AAA 768,532
Special Tax Bonds, Community Facilities District, Series 2005,
5.000%, 9/01/24 - FGIC Insured
1,810 Cerritos Public Financing Authority, California, Tax Allocation No Opt. Call AAA 1,964,357
Revenue Bonds, Los Cerritos Redevelopment Projects,
Series 2002A, 5.000%, 11/01/14 - AMBAC Insured
2,160 Chino Redevelopment Agency, California, Merged Chino 9/16 at 101.00 AAA 2,331,331
Redevelopment Project Area Tax Allocation Bonds,
Series 2006, 5.000%, 9/01/38 - AMBAC Insured (UB)
1,270 Coalinga Public Financing Authority, California, Local Obligation No Opt. Call AAA 1,523,238
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 1,208,903
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 1,069,600
Tax Bonds, Amerige Heights, Series 2002, 6.100%, 9/01/22
Irvine, California, Unified School District, Community Facilities
District Special Tax Bonds, Series 2006A:
350 5.000%, 9/01/26 9/16 at 100.00 N/R 359,461
805 5.125%, 9/01/36 9/16 at 100.00 N/R 830,341
3,000 Lake Elsinore Public Finance Authority, California, Local 10/13 at 102.00 N/R 3,276,300
Agency Revenue Refunding Bonds, Series 2003H,
6.000%, 10/01/20
685 Lammersville School District, San Joaquin County, California, 9/16 at 100.00 N/R 707,913
Community Facilities District 2002, Mountain House Special
Tax Bonds, Series 2006, 5.125%, 9/01/35
5,250 Lammersville School District, San Joaquin County, California, 9/12 at 101.00 N/R 5,741,925
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 2,234,780
Tax Bonds, Community Facilities District 1 of Sycamore Creek,
Series 2003, 6.500%, 9/01/24
1,985 Lincoln, California, Special Tax Bonds, Lincoln Crossing 9/13 at 102.00 N/R 2,210,913
Community Facilities District 03-1, Series 2003A,
6.500%, 9/01/25
1,360 Lincoln, California, Special Tax Bonds, Lincoln Crossing 9/13 at 102.00 N/R 1,424,042
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 5,695,599
Improvement Financing Project, Series 2002,
5.000%, 10/01/26 - MBIA Insured
1,310 Los Angeles Community Redevelopment Agency, California, 9/15 at 100.00 Aaa 1,392,517
Lease Revenue Bonds, Manchester Social Services Project,
Series 2005, 5.000%, 9/01/37 - AMBAC Insured
1,000 Los Banos Redevelopment Agency, California, Project Tax 9/16 at 100.00 AA 1,051,370
Allocation Bonds, Los Banos Redevelopment Project,
Series 2006, 5.000%, 9/01/36 - RAAI Insured
1,000 Monterey County, California, Certificates of Participation, 8/11 at 100.00 Aaa 1,060,190
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 1,772,820
California, Certificates of Participation, Series 2005,
5.000%, 3/01/26 - FSA Insured
North Natomas Community Facilities District 4, Sacramento,
California, Special Tax Bonds, Series 2006D:
550 5.000%, 9/01/26 3/07 at 103.00 N/R 564,867
250 5.000%, 9/01/33 3/07 at 103.00 N/R 256,373
3,000 Oakland Redevelopment Agency, California, Subordinate 3/13 at 100.00 AAA 3,292,770
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 4,765,798
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 2,079,960
Facilities District 02-1 of Ladera Ranch, Series 2003A,
5.550%, 8/15/33
50
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 11,165 Palm Desert Financing Authority, California, Tax Allocation 4/12 at 102.00 AAA $ 11,897,647
Revenue Refunding Bonds, Project Area 1, Series 2002,
5.100%, 4/01/30 - MBIA Insured
3,250 Pomona Public Financing Authority, California, Revenue 2/11 at 100.00 AAA 3,366,285
Refunding Bonds, Merged Redevelopment Projects,
Series 2001AD, 5.000%, 2/01/27 - MBIA Insured
6,000 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AAA 7,139,220
Revenue Bonds, Series 2007N, 5.250%, 7/01/32
(WI/DD, Settling 3/06/07) - MBIA Insured
625 Rialto Redevelopment Agency, California, Tax Allocation Bonds, 9/15 at 100.00 AAA 663,444
Merged Project Area, Series 2005A, 5.000%, 9/01/35 -
XLCA Insured
780 Roseville, California, Certificates of Participation, Public 8/13 at 100.00 AAA 823,111
Facilities, Series 2003A, 5.000%, 8/01/25 - AMBAC Insured
1,700 Roseville, California, Special Tax Bonds, Community Facilities 9/09 at 103.00 N/R 1,795,642
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 1,242,828
Community Facilities District 4, Series 2003C, 6.000%, 9/01/33
14,505 San Diego Redevelopment Agency, California, Subordinate Lien 9/11 at 101.00 AAA 15,222,271
Tax Allocation Bonds, Centre City Project, Series 2001A,
5.000%, 9/01/26 - FSA Insured
2,300 San Francisco Bay Area Rapid Transit District, California, 7/11 at 100.00 AAA 2,397,244
Sales Tax Revenue Bonds, Series 2001, 5.000%, 7/01/26 -
AMBAC Insured
1,590 San Marcos Public Facilities Authority, California, Special 9/09 at 102.00 N/R 1,668,403
Tax Bonds, Community Facilities District 99-1, Series 2003B,
6.000%, 9/01/24
8,710 South Orange County Public Financing Authority, California, 8/15 at 100.00 AAA 9,316,477
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 3,214,809
Bonds, Community Facilities District 01-1, Series 2003B,
7.000%, 9/01/38
2,000 West Patterson Financing Authority, California, Special Tax 9/13 at 102.00 N/R 2,165,100
Bonds, Community Facilities District 01-1, Series 2004B,
6.000%, 9/01/39
1,375 West Patterson Financing Authority, California, Special Tax 9/13 at 103.00 N/R 1,509,351
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 2,604,375
County, California, General Obligation Refunding Bonds,
Series 2001A, 5.000%, 10/01/26 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
141,025 Total Tax Obligation/Limited 151,735,463
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 10.6% (6.9% OF TOTAL INVESTMENTS)
1,690 Bay Area Toll Authority, California, Revenue Bonds, 4/16 at 100.00 AA 1,819,691
San Francisco Bay Area Toll Bridge, Series 2006,
5.000%, 4/01/31
11,750 Foothill/Eastern Transportation Corridor Agency, California, 1/14 at 101.00 BBB- 10,990,598
Toll Road Revenue Refunding Bonds, Series 1999,
5.875%, 1/15/28
3,000 Port of Oakland, California, Revenue Bonds, Series 2002M, 11/12 at 100.00 AAA 3,233,520
5.250%, 11/01/20 - FGIC Insured
1,500 Port of Oakland, California, Revenue Refunding Bonds, 11/07 at 102.00 AAA 1,548,870
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 4,411,222
10,625 5.125%, 5/01/18 - FGIC Insured 5/13 at 100.00 AAA 11,381,925
5,140 5.125%, 5/01/19 - FGIC Insured 5/13 at 100.00 AAA 5,494,506
------------------------------------------------------------------------------------------------------------------------------------
37,815 Total Transportation 38,880,332
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 16.5% (10.8% OF TOTAL INVESTMENTS) (4)
11,240 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 N/R (4) 12,085,697
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 3,829,420
9,000 5.125%, 5/01/18 (Pre-refunded 5/01/12) 5/12 at 101.00 Aaa 9,741,510
51
Nuveen California Dividend Advantage Municipal Fund 3 (NZH) (continued)
Portfolio of INVESTMENTS February 28, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
Los Angeles Unified School District, California, General Obligation
Bonds, Series 2003A:
$ 3,750 5.250%, 7/01/20 (Pre-refunded 7/01/13) - FSA Insured 7/13 at 100.00 AAA $ 4,112,325
7,200 5.000%, 7/01/22 (Pre-refunded 7/01/13) - FSA Insured 7/13 at 100.00 AAA 7,794,216
1,525 Lucia Mar Unified School District, San Luis Obispo County, 8/14 at 100.00 Aaa 1,688,983
California, General Obligation Bonds, Series 2004A,
5.250%, 8/01/22 (Pre-refunded 8/01/14) - FGIC Insured
5,500 Puerto Rico Highway and Transportation Authority, Highway 7/12 at 100.00 AAA 5,971,680
Revenue Bonds, Series 2002D, 5.375%, 7/01/36
(Pre-refunded 7/01/12)
6,425 San Francisco Bay Area Rapid Transit District, California, 7/11 at 100.00 Aaa 6,803,111
Sales Tax Revenue Bonds, Series 2001, 5.000%, 7/01/26
(Pre-refunded 7/01/11) - AMBAC Insured
1,000 Saugus Union School District, Los Angeles County, California, 8/12 at 100.00 AAA 1,071,210
General Obligation Bonds, Series 2002A, 5.000%, 8/01/24
(Pre-refunded 8/01/12) - FGIC Insured
4,200 Tobacco Securitization Authority of Southern California, 6/12 at 100.00 AAA 4,575,774
Tobacco Settlement Asset-Backed Bonds, San Diego County
Tobacco Asset Securitization Corporation, Senior Series 2001A,
5.500%, 6/01/36 (Pre-refunded 6/01/12)
2,500 Whittier, California, Health Facility Revenue Bonds, Presbyterian 6/12 at 101.00 A+ (4) 2,760,050
Intercommunity Hospital, Series 2002, 5.600%, 6/01/22
(Pre-refunded 6/01/12)
------------------------------------------------------------------------------------------------------------------------------------
55,840 Total U.S. Guaranteed 60,433,976
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 9.1% (5.9% OF TOTAL INVESTMENTS)
15,000 California Pollution Control Financing Authority, Remarketed 4/11 at 102.00 AAA 16,085,546
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 1,286,352
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 1,382,146
Bonds, Series 2005, 5.125%, 9/01/31 - XLCA Insured
5,000 Merced Irrigation District, California, Revenue Certificates 9/13 at 102.00 Baa3 5,395,950
of Participation, Electric System Project, Series 2003,
5.700%, 9/01/36
2,250 Salinas Valley Solid Waste Authority, California, Revenue 8/12 at 100.00 AAA 2,359,868
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 6,609,892
Magnolia Power Project, Series 2003-1A, 5.250%, 7/01/16 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
30,820 Total Utilities 33,119,754
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 12.9% (8.4% OF TOTAL INVESTMENTS)
1,070 Burbank, California, Wastewater System Revenue Bonds, 6/14 at 100.00 AAA 1,142,674
Series 2004A, 5.000%, 6/01/22 - AMBAC Insured
7,000 Carmichael Water District, Sacramento County, California, 9/09 at 102.00 AAA 7,308,630
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 2,134,400
Certificates of Participation, Series 2004A, 5.000%, 3/01/20 -
FGIC Insured
890 Healdsburg Public Financing Authority, California, Wastewater 4/16 at 100.00 AAA 952,692
Revenue Bonds, Series 2006, 5.000%, 4/01/36 - MBIA Insured
850 Marina Coast Water District, California, Enterprise Certificate 6/16 at 100.00 AAA 912,118
of Participation, Series 2006, 5.000%, 6/01/31 - MBIA Insured
1,000 Pico Rivera Water Authority, California, Revenue Bonds, 12/11 at 102.00 N/R 1,081,130
Series 2001A, 6.250%, 12/01/32
1,685 Pomona Public Finance Authority, California, Revenue Bonds, 5/17 at 100.00 AAA 1,825,361
Water Facilities Project, Series 2007AY, 5.000%, 5/01/26 -
AMBAC Insured
1,380 Sacramento County Sanitation District Financing Authority, 6/16 at 100.00 AAA 1,486,370
California, Revenue Bonds, Series 2006, 5.000%, 12/01/36 -
FGIC Insured
1,000 San Buenaventura, California, Wastewater Revenue Certificates 3/14 at 100.00 AAA 1,060,900
of Participation, Series 2004, 5.000%, 3/01/24 - MBIA Insured
52
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
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 $ 2,633,225
6,260 5.000%, 8/01/24 - MBIA Insured 8/12 at 100.00 AAA 6,593,595
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 3,593,758
12,000 5.250%, 10/01/19 - MBIA Insured 4/13 at 100.00 AAA 13,009,079
1,955 Westlands Water District, California, Revenue Certificates 3/15 at 100.00 AAA 2,089,895
of Participation, Series 2005A, 5.000%, 9/01/23 -
MBIA Insured
1,340 Westlands Water District, California, Revenue Certificates 9/16 at 100.00 AAA 1,434,711
of Participation, Series 2007A, 5.000%, 9/01/37 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
44,245 Total Water and Sewer 47,258,538
------------------------------------------------------------------------------------------------------------------------------------
$ 516,994 Total Long-Term Investments (cost $526,361,006) - 151.1% 552,075,446
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 2.1% (1.4% OF TOTAL INVESTMENTS)
5,620 California Department of Water Resources, Power Supply A-1+ 5,620,000
Revenue Bonds, Variable Rate Demand Obligations,
Series 2002C-7, 3.550%, 5/01/22 - FSA Insured (5)
2,000 California Department of Water Resources, Power Supply A-1+ 2,000,000
Revenue Bonds, Variable Rate Demand Obligations,
Series 2005G-3, 3.550%, 5/01/16 - FSA Insured (5)
------------------------------------------------------------------------------------------------------------------------------------
$ 7,620 Total Short-Term Investments (cost $7,620,000) 7,620,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $533,981,006) - 153.2% 559,695,446
--------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (1.2)% (4,479,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (0.8)% (2,916,598)
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (51.2)% (187,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 365,299,848
====================================================================================================================
(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) 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 Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
(UB) Underlying bond of an inverse floating rate trust
reflected as a financing transaction pursuant to the
provisions of SFAS No. 140.
See accompanying notes to financial statements.
53
Nuveen Insured California Dividend Advantage Municipal Fund (NKL)
Portfolio of
INVESTMENTS February 28, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.3% (1.4% OF TOTAL INVESTMENTS)
$ 4,500 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB $ 5,485,050
Tobacco Settlement Asset-Backed Revenue Bonds,
Series 2003A-2, 7.900%, 6/01/42
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 4.7% (3.1% OF TOTAL INVESTMENTS)
1,675 California Educational Facilities Authority, Revenue Bonds, 10/12 at 100.00 A2 1,759,638
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 9,537,120
Series 2002A, 5.125%, 11/01/26 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
10,675 Total Education and Civic Organizations 11,296,758
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 5.1% (3.3% OF TOTAL INVESTMENTS)
5,000 ABAG Finance Authority for Non-Profit Corporations, California, 4/12 at 100.00 A 5,363,850
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 2,986,236
Bonds, Lucile Salter Packard Children's Hospital, Series 2003C,
5.000%, 8/15/20 - AMBAC Insured
3,380 Rancho Mirage Joint Powers Financing Authority, California, 7/14 at 100.00 A3 3,780,699
Revenue Bonds, Eisenhower Medical Center, Series 2004,
5.875%, 7/01/26
------------------------------------------------------------------------------------------------------------------------------------
11,195 Total Health Care 12,130,785
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.3% (0.9% OF TOTAL INVESTMENTS)
1,000 California Statewide Community Development Authority, 8/12 at 100.00 A 1,066,940
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 2,005,965
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 3,072,905
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.2% (0.2% OF TOTAL INVESTMENTS)
555 California Housing Finance Agency, Home Mortgage Revenue 2/16 at 100.00 AAA 597,519
Bonds, Series 2006H, 5.750%, 8/01/30 - FGIC Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.3% (1.0% OF TOTAL INVESTMENTS)
3,000 California Pollution Control Financing Authority, Solid Waste No Opt. Call BBB+ 3,213,810
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% (2.3% OF TOTAL INVESTMENTS)
3,000 ABAG Finance Authority for Non-Profit Corporations, California, 11/12 at 100.00 A 3,162,180
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 5,260,300
Revenue Bonds, Jewish Home for the Aging, Series 2003,
5.000%, 11/15/18
------------------------------------------------------------------------------------------------------------------------------------
8,000 Total Long-Term Care 8,422,480
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 28.3% (18.5% OF TOTAL INVESTMENTS)
5,920 Cajon Valley Union School District, San Diego County, 8/10 at 102.00 AAA 6,251,994
California, General Obligation Bonds, Series 2002B,
5.125%, 8/01/32 - MBIA Insured
3,000 California State, General Obligation Bonds, Series 2007, 12/16 at 100.00 AAA 2,967,870
4.250%, 12/01/35 (WI/DD, Settling 3/01/07) - AMBAC Insured
2,900 California, General Obligation Bonds, Series 2003, 5.000%, 2/01/21 8/13 at 100.00 A+ 3,083,918
1,750 California, General Obligation Bonds, Series 2004, 5.125%, 2/01/27 2/14 at 100.00 A+ 1,869,648
54
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 8,250 California, General Obligation Refunding Bonds, Series 2002, 2/12 at 100.00 AAA $ 8,650,950
5.000%, 2/01/22 - MBIA Insured
2,560 Compton Community College District, Los Angeles County, 7/14 at 100.00 AAA 2,785,485
California, General Obligation Bonds, Series 2004A,
5.250%, 7/01/23 - MBIA Insured
230 El Monte Union High School District, Los Angeles County, 6/13 at 100.00 AAA 242,740
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 10,606,400
General Obligation Bonds, Series 2002A, 5.000%, 8/01/25 -
FGIC Insured
4,115 Los Angeles Unified School District, Los Angeles County, 7/16 at 100.00 AAA 4,345,193
California, General Obligation Bonds, Series 2006B,
4.750%, 7/01/25 - FGIC Insured (UB)
1,000 Los Rios Community College District, Sacramento, El Dorado 8/14 at 102.00 AAA 1,082,940
and Yolo Counties, California, General Obligation Bonds,
Series 2006C, 5.000%, 8/01/25 - FSA Insured
1,500 Madera Unified School District, Madera County, California, 8/12 at 100.00 AAA 1,576,935
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 2,692,000
General Obligation Bonds, Series 2002, 5.250%, 8/01/21 -
FGIC Insured
375 Roseville Joint Union High School District, Placer County, 8/15 at 100.00 AAA 402,559
California, General Obligation Bonds, Series 2006B,
5.000%, 8/01/27 - FGIC Insured
3,250 San Diego Unified School District, San Diego County, 7/11 at 102.00 AAA 3,478,735
California, General Obligation Bonds, Election of 1998,
Series 2001C, 5.000%, 7/01/22 - FSA Insured
1,960 San Diego Unified School District, San Diego County, 7/16 at 101.00 AAA 2,002,767
California, General Obligation Bonds, Series 2006G-1,
4.500%, 7/01/29 - FSA Insured (UB)
1,160 San Gabriel Unified School District, Los Angeles County, 8/15 at 100.00 AAA 1,253,879
California, General Obligation Bonds, Series 2005,
5.000%, 8/01/22 - FSA Insured
3,500 San Mateo County Community College District, California, 9/12 at 100.00 AAA 3,682,105
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 10,532,900
General Obligation Bonds, Series 2002A, 5.000%, 8/01/23 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
63,970 Total Tax Obligation/General 67,509,018
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 44.3% (29.0% OF TOTAL INVESTMENTS)
1,450 Baldwin Park Public Financing Authority, California, Sales Tax 8/13 at 102.00 BBB 1,538,102
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 7,268,709
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 2,482,726
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 2,337,808
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 3,298,276
Department of Health Services, Richmond Lab, Series 2005B,
5.000%, 11/01/30 - XLCA Insured
465 Capistrano Unified School District, Orange County, California, 9/15 at 100.00 AAA 499,815
Special Tax Bonds, Community Facilities District, Series 2005,
5.000%, 9/01/24 - FGIC Insured
1,400 Chino Redevelopment Agency, California, Merged Chino Project 9/16 at 101.00 AAA 1,511,048
Area Tax Allocation Bonds, 5.000%, 9/01/38 -
AMBAC Insured (UB)
7,035 Corona-Norco Unified School District, Riverside County, 9/13 at 100.00 AAA 7,424,317
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 3,310,616
Revenue Bonds, Redevelopment Project, Series 2002A,
5.125%, 11/01/25 - MBIA Insured
8,720 El Monte, California, Senior Lien Certificates of Participation, 1/11 at 100.00 AAA 9,044,558
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 4,271,600
Revenue Bonds, Series 2004A, 5.000%, 9/01/21 -
AMBAC Insured
55
Nuveen Insured California Dividend Advantage Municipal Fund (NKL) (continued)
Portfolio of INVESTMENTS February 28, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 2,115 Inglewood Redevelopment Agency, California, Tax Allocation No Opt. Call AAA $ 2,412,834
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 3,713,080
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 3,637,864
Bonds, Redevelopment Project Area 1, Series 2002,
5.000%, 9/01/22 - AMBAC Insured
845 Los Angeles Community Redevelopment Agency, California, 9/15 at 100.00 Aaa 898,227
Lease Revenue Bonds, Manchester Social Services Project,
Series 2005, 5.000%, 9/01/37 - AMBAC Insured
4,690 Los Angeles County Metropolitan Transportation Authority, 7/08 at 101.00 AAA 4,804,202
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 1,536,329
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 7,398,790
Series 2002, 5.200%, 4/01/27 - AMBAC Insured
8,470 Ontario Redevelopment Financing Authority, California, Lease 8/11 at 101.00 AAA 8,988,957
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 5,313,850
Revenue Refunding Bonds, Project Area 1, Series 2002,
5.000%, 4/01/25 - MBIA Insured
3,000 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AAA 3,569,610
Revenue Bonds, Series 2007N, 5.250%, 7/01/32 (WI/DD,
Settling 3/06/07) - MBIA Insured
405 Rialto Redevelopment Agency, California, Tax Allocation Bonds, 9/15 at 100.00 AAA 429,912
Merged Project Area, Series 2005A, 5.000%, 9/01/35 -
XLCA Insured
4,475 Riverside County, California, Asset Leasing Corporate Leasehold 6/12 at 101.00 AAA 4,743,455
Revenue Bonds, Riverside County Hospital Project,
Series 1997B, 5.000%, 6/01/19 - MBIA Insured
505 Roseville, California, Certificates of Participation, Public 8/13 at 100.00 AAA 532,911
Facilities, Series 2003A, 5.000%, 8/01/25 - AMBAC Insured
3,175 San Buenaventura, California, Certificates of Participation, 2/11 at 101.00 AAA 3,352,610
Series 2001C, 5.250%, 2/01/31 - AMBAC Insured
3,730 San Diego Redevelopment Agency, California, Subordinate 9/09 at 101.00 Baa2 3,864,951
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 4,209,840
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 1,072,260
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 2,235,017
Revenue Bonds, Redevelopment Project 1, Series 2002,
5.125%, 8/01/27 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
99,630 Total Tax Obligation/Limited 105,702,274
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 4.9% (3.2% OF TOTAL INVESTMENTS)
7,500 Foothill/Eastern Transportation Corridor Agency, California, 1/14 at 101.00 BBB- 7,006,500
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 2,331,766
2,300 5.250%, 5/01/17 - FGIC Insured (Alternative Minimum Tax) 5/13 at 100.00 AAA 2,454,491
------------------------------------------------------------------------------------------------------------------------------------
11,985 Total Transportation 11,792,757
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 19.4% (12.7% OF TOTAL INVESTMENTS) (4)
6,000 California Department of Water Resources, Power Supply 5/12 at 101.00 Aaa 6,494,340
Revenue Bonds, Series 2002A, 5.125%, 5/01/18
(Pre-refunded 5/01/12)
56
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
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 N/R (4) $ 2,688,550
1,000 6.250%, 12/01/34 (Pre-refunded 12/01/09) 12/09 at 101.00 N/R (4) 1,078,670
2,250 California Infrastructure Economic Development Bank, 1/28 at 100.00 AAA 2,581,560
First Lien Revenue Bonds, San Francisco Bay Area Toll Bridge,
Series 2003A, 5.000%, 7/01/36 (Pre-refunded 1/01/28) -
AMBAC Insured
2,185 El Monte Union High School District, Los Angeles County, 6/13 at 100.00 Aaa 2,363,187
California, General Obligation Bonds, Series 2003A,
5.000%, 6/01/28 (Pre-refunded 6/01/13) - FSA Insured
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 1,205,813
1,190 5.125%, 8/01/24 - FGIC Insured (ETM) 8/10 at 102.00 AAA 1,264,244
1,245 5.125%, 8/01/25 - FGIC Insured (ETM) 8/10 at 102.00 AAA 1,323,921
1,255 5.125%, 8/01/26 - FGIC Insured (ETM) 8/10 at 102.00 AAA 1,329,120
2,070 Fresno Unified School District, Fresno County, California, 8/10 at 102.00 AAA 2,192,254
General Obligation Bonds, Series 2002G, 5.125%, 8/01/26 -
FSA Insured (ETM)
5,000 Los Angeles Unified School District, California, General 7/12 at 100.00 AAA 5,381,150
Obligation Bonds, Series 2002E, 5.125%, 1/01/27
(Pre-refunded 7/01/12) - MBIA Insured
3,000 Peralta Community College District, Alameda County, 8/09 at 102.00 AAA 3,159,690
California, 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 County, 8/11 at 101.00 AAA 3,199,239
California, General Obligation Bonds, Series 2002,
5.125%, 8/01/26 (Pre-refunded 8/01/11) - FGIC Insured
9,000 University of California, Revenue Bonds, Multiple Purpose 9/08 at 101.00 AA (4) 9,322,020
Projects, Series 2000K, 5.300%, 9/01/30 (Pre-refunded 9/01/08)
2,460 Vacaville Unified School District, Solano County, California, 8/11 at 101.00 AAA 2,628,485
General Obligation Bonds, Series 2002, 5.000%, 8/01/26
(Pre-refunded 8/01/11) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
43,270 Total U.S. Guaranteed 46,212,243
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 16.5% (10.8% OF TOTAL INVESTMENTS)
9,000 Anaheim Public Finance Authority, California, Revenue Bonds, 10/12 at 100.00 AAA 9,474,300
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 10,723,697
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 3,166,290
Power System Revenue Bonds, Series 2001A-1,
5.250%, 7/01/21 - FSA Insured
830 Merced Irrigation District, California, Electric System Revenue 9/15 at 100.00 AAA 892,748
Bonds, Series 2005, 5.125%, 9/01/31 - XLCA Insured
6,000 Northern California Power Agency, Revenue Refunding Bonds, 7/08 at 101.00 AAA 6,161,280
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 3,130,200
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 5,855,707
Revenue Refunding Bonds, Transmission Project, Series 2002A,
4.750%, 7/01/19 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
37,460 Total Utilities 39,404,222
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 17.7% (11.6% OF TOTAL INVESTMENTS)
3,000 California Department of Water Resources, Water System 12/12 at 100.00 AAA 3,199,530
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 6,353,272
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 9,342,270
Sewerage System Revenue Certificates of Participation,
Series 2001B, 5.000%, 7/01/30 - FGIC Insured
57
Nuveen Insured California Dividend Advantage Municipal Fund (NKL) (continued)
Portfolio of INVESTMENTS February 28, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 570 Healdsburg Public Financing Authority, California, Wastewater 4/16 at 100.00 AAA $ 610,151
Revenue Bonds, Series 2006, 5.000%, 4/01/36 - MBIA Insured
4,500 Los Angeles County Sanitation Districts Financing Authority, 10/13 at 100.00 AAA 4,779,765
California, Senior Revenue Bonds, Capital Projects,
Series 2003A, 5.000%, 10/01/23 - FSA Insured
2,855 Manteca Financing Authority, California, Sewerage Revenue 12/13 at 100.00 Aaa 2,859,168
Bonds, Series 2003B, 5.000%, 12/01/33 - MBIA Insured
500 Marina Coast Water District, California, Enterprise Certificate 6/16 at 100.00 AAA 536,540
of Participation, Series 2006, 5.000%, 6/01/31 - MBIA Insured
9,185 Orange County Sanitation District, California, Certificates 8/13 at 100.00 AAA 9,676,673
of Participation, Series 2003, 5.000%, 2/01/33 - FGIC Insured
870 Sacramento County Sanitation District Financing Authority, 6/16 at 100.00 AAA 937,060
California, Revenue Bonds, Series 2006, 5.000%, 12/01/36 -
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 1,463,437
1,415 5.500%, 12/01/21 - XLCA Insured 12/14 at 100.00 AAA 1,575,744
750 Westlands Water District, California, Revenue Certificates 9/16 at 100.00 AAA 803,010
of Participation, Series 2007A, 5.000%, 9/01/37 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
40,060 Total Water and Sewer 42,136,620
------------------------------------------------------------------------------------------------------------------------------------
$ 337,205 Total Long-Term Investments (cost $333,983,938) - 149.5% 356,976,441
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 3.0% (2.0% OF TOTAL INVESTMENTS)
4,500 California Department of Water Resources, Power Supply A-1+ 4,500,000
Revenue Bonds, Variable Rate Demand Obligations,
Series 2002C-7, 3.550%, 5/01/22 - FSA Insured (5)
2,565 California Infrastructure and Economic Development Bank, A-1+ 2,565,000
Revenue Bonds, Jewish Community Center, Variable Rate
Demand Obligations, Series 2007, 3.510%, 12/01/31 -
FGIC Insured (5)
------------------------------------------------------------------------------------------------------------------------------------
$ 7,065 Total Short-Term Investments (cost $7,065,000) 7,065,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $341,048,938) - 152.5% 364,041,441
--------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (2.1)% (4,985,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (1.0)% (2,358,819)
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.4)% (118,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 238,697,622
====================================================================================================================
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) 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 Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
(UB) Underlying bond of an inverse floating rate trust
reflected as a financing transaction pursuant to the
provisions of SFAS No. 140.
See accompanying notes to financial statements.
58
Nuveen Insured California Tax-Free Advantage Municipal Fund (NKX)
Portfolio of
INVESTMENTS February 28, 2007 (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 $ 1,980,713
Tobacco Settlement Asset-Backed Revenue Bonds,
Series 2003A-2, 7.900%, 6/01/42
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 11.2% (7.3% OF TOTAL INVESTMENTS)
1,800 California Infrastructure Economic Development Bank, Revenue 8/11 at 102.00 A+ 1,918,116
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 2,156,600
Hospital Revenue Bonds, Monterey Peninsula Hospital,
Series 2003B, 5.250%, 6/01/23 - FSA Insured
4,060 California Statewide Community Development Authority, No Opt. Call AAA 4,453,536
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 1,409,373
Revenue Bonds, Eisenhower Medical Center, Series 2004,
5.875%, 7/01/26
------------------------------------------------------------------------------------------------------------------------------------
9,120 Total Health Care 9,937,625
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.4% (0.9% OF TOTAL INVESTMENTS)
1,165 Poway, California, Housing Revenue Bonds, Revenue Bonds, 5/13 at 102.00 BBB+ 1,206,824
Poinsettia Mobile Home Park, Series 2003, 5.000%, 5/01/23
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 5.7% (3.8% OF TOTAL INVESTMENTS)
1,000 ABAG Finance Authority for Non-Profit Corporations, California, 11/12 at 100.00 A 1,054,060
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+ 2,114,560
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 1,909,489
Revenue Bonds, Jewish Home for the Aging, Series 2003,
5.000%, 11/15/18
------------------------------------------------------------------------------------------------------------------------------------
4,815 Total Long-Term Care 5,078,109
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 36.1% (23.7% OF TOTAL INVESTMENTS)
2,000 Butte-Glenn Community College District, Butte and Glenn 8/12 at 101.00 Aaa 2,113,440
Counties, California, General Obligation Bonds, Series 2002A,
5.000%, 8/01/26 - MBIA Insured
1,000 California State, General Obligation Bonds, Series 2007, 12/16 at 100.00 AAA 989,290
4.250%, 12/01/35 (WI/DD, Settling 3/01/07) - AMBAC Insured
California, General Obligation Bonds, Series 2004:
1,000 5.125%, 2/01/27 2/14 at 100.00 A+ 1,068,370
500 5.250%, 4/01/34 4/14 at 100.00 A+ 538,080
California, General Obligation Refunding Bonds, Series 2002:
3,750 5.000%, 4/01/27 - AMBAC Insured 4/12 at 100.00 AAA 3,931,650
3,000 5.250%, 4/01/30 - XLCA Insured 4/12 at 100.00 AAA 3,186,720
450 Fremont Unified School District, Alameda County, California, 8/12 at 101.00 AAA 477,288
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 4,755,240
2,030 5.000%, 8/01/27 - FSA Insured 8/13 at 100.00 AAA 2,145,142
1,540 Los Angeles Unified School District, Los Angeles County, 7/16 at 100.00 AAA 1,622,467
California, General Obligation Bonds, Series 2006B,
4.750%, 7/01/25 - FGIC Insured (UB)
2,000 Los Angeles, California, General Obligation Bonds, 9/12 at 100.00 AAA 2,108,100
Series 2002A, 5.000%, 9/01/22 - MBIA Insured
59
Nuveen Insured California Tax-Free Advantage Municipal Fund (NKX) (continued)
Portfolio of INVESTMENTS February 28, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 1,000 Murrieta Valley Unified School District, Riverside County, 9/13 at 100.00 AAA $ 1,057,390
California, General Obligation Bonds, Series 2003A,
5.000%, 9/01/26 - FGIC Insured
140 Roseville Joint Union High School District, Placer County, 8/15 at 100.00 AAA 150,289
California, General Obligation Bonds, Series 2006B,
5.000%, 8/01/27 - FGIC Insured
3,000 San Diego Unified School District, California, General 7/10 at 100.00 AAA 3,140,280
Obligation Bonds, Election of 1998, Series 2000B,
5.125%, 7/01/22 - MBIA Insured
152 San Diego Unified School District, San Diego County, 7/16 at 101.00 AAA 155,317
California, General Obligation Bonds, Series 2006F-1,
4.500%, 7/01/29 - FSA Insured (UB)
635 San Diego Unified School District, San Diego County, 7/16 at 101.00 AAA 648,856
California, General Obligation Bonds, Series 2006G-1,
4.500%, 7/01/29 - FSA Insured (UB)
3,855 San Rafael City High School District, Marin County, 8/12 at 100.00 AAA 4,052,723
California, General Obligation Bonds, Series 2003A,
5.000%, 8/01/28 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
30,522 Total Tax Obligation/General 32,140,642
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 41.1% (27.0% OF TOTAL INVESTMENTS)
550 Baldwin Park Public Financing Authority, California, Sales 8/13 at 102.00 BBB 583,418
Tax and Tax Allocation Bonds, Puente Merced Redevelopment
Project, Series 2003, 5.250%, 8/01/21
2,025 Burbank Public Financing Authority, California, Revenue 12/13 at 100.00 AAA 2,187,790
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 2,211,760
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 4,205,760
Department of General Services, Capital East End Project,
Series 2002A, 5.000%, 12/01/27 - AMBAC Insured
170 Capistrano Unified School District, Orange County, California, 9/15 at 100.00 AAA 182,728
Special Tax Bonds, Community Facilities District, Series 2005,
5.000%, 9/01/24 - FGIC Insured
525 San Diego Unified School District, San Diego County, California, 7/16 at 101.00 AAA 566,643
General Obligation Bonds, Series 2006G-1, 4.500%, 7/01/29 -
FSA Insured (UB)
1,000 Coachella Valley Unified School District, Riverside County, 9/16 at 100.00 Aaa 1,070,680
California, Certificates of Participation, Series 2007,
5.000%, 9/01/36 - AMBAC Insured
1,610 Folsom Public Financing Authority, California, Special Tax 9/12 at 102.00 AAA 1,719,319
Revenue Bonds, Series 2004A, 5.000%, 9/01/21 -
AMBAC Insured
5,540 Irvine Public Facilities and Infrastructure Authority, California, 9/13 at 100.00 AAA 5,733,734
Assessment Revenue Bonds, Series 2003C, 5.000%, 9/02/21 -
AMBAC Insured
315 Los Angeles Community Redevelopment Agency, California, 9/15 at 100.00 Aaa 334,842
Lease Revenue Bonds, Manchester Social Services Project,
Series 2005, 5.000%, 9/01/37 - AMBAC Insured
1,770 Los Angeles Unified School District, California, Certificates 10/12 at 100.00 AAA 1,857,385
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 2,104,560
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 1,575,750
Wastewater Assessment District 1, Series 2002,
5.000%, 9/02/33 - MBIA Insured
1,000 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AAA 1,189,870
Revenue Bonds, Series 2007N, 5.250%, 7/01/32 (WI/DD,
Settling 3/06/07) - MBIA Insured
150 Rialto Redevelopment Agency, California, Tax Allocation Bonds, 9/15 at 100.00 AAA 159,227
Merged Project Area, Series 2005A, 5.000%, 9/01/35 -
XLCA Insured
190 Roseville, California, Certificates of Participation, Public 8/13 at 100.00 AAA 200,501
Facilities, Series 2003A, 5.000%, 8/01/25 - AMBAC 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 3,132,120
3,300 5.000%, 2/01/32 - AMBAC Insured 2/12 at 100.00 AAA 3,440,712
60
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,200 San Diego Redevelopment Agency, California, Subordinate 9/09 at 101.00 Baa2 $ 1,243,416
Lien Tax Increment and Parking Revenue Bonds, Centre City
Project, Series 2003B, 5.250%, 9/01/26
2,770 San Jose Financing Authority, California, Lease Revenue 6/12 at 100.00 AAA 2,894,816
Refunding Bonds, Civic Center Project, Series 2002B,
5.000%, 6/01/32 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
34,615 Total Tax Obligation/Limited 36,595,031
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 10.2% (6.7% OF TOTAL INVESTMENTS)
5,480 Bay Area Governments Association, California, BART SFO 8/12 at 100.00 AAA 5,746,054
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- 2,022,280
Toll Road Revenue Bonds, Series1995A, 5.000%, 1/01/35
1,300 San Francisco Airports Commission, California, Revenue Bonds, 5/10 at 101.00 AAA 1,356,524
San Francisco International Airport, Second Series 2000,
Issue 26B, 5.000%, 5/01/25 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
8,780 Total Transportation 9,124,858
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 24.7% (16.3% OF TOTAL INVESTMENTS) (4)
1,000 Berryessa Union School District, Santa Clara County, California, 8/12 at 100.00 AAA 1,071,210
General Obligation Bonds, Series 2003C, 5.000%, 8/01/21
(Pre-refunded 8/01/12) - FSA Insured
1,000 California Health Facilities Financing Authority, Revenue Bonds, 12/09 at 101.00 N/R (4) 1,078,670
Cedars-Sinai Medical Center, Series 1999A, 6.250%, 12/01/34
(Pre-refunded 12/01/09)
1,500 California Health Facilities Financing Authority, Revenue Bonds, 11/08 at 101.00 AAA 1,550,535
UCSF - Stanford Healthcare, Series 1998A, 5.000%, 11/15/31
(Pre-refunded 11/15/08) - FSA Insured
1,940 California Statewide Community Development Authority, 8/08 at 102.00 AAA 2,016,300
Revenue Bonds, Sherman Oaks Health System, Series 1998A,
5.000%, 8/01/22 (Pre-refunded 8/01/08) - AMBAC Insured
8,500 Los Angeles Unified School District, California, General 7/13 at 100.00 AAA 9,201,502
Obligation Bonds, Series 2003A, 5.000%, 7/01/22
(Pre-refunded 7/01/13) - FSA Insured
3,135 San Francisco Airports Commission, California, Revenue Bonds, 5/08 at 101.00 AAA 3,216,604
San Francisco International Airport, Second Series Issue 16B,
5.000%, 5/01/24 (Pre-refunded 5/01/08) - FSA Insured
1,220 San Jose Redevelopment Agency, California, Tax Allocation 8/10 at 101.00 AAA 1,289,589
Bonds, Merged Area Redevelopment Project, Series 2002,
5.000%, 8/01/32 (Pre-refunded 8/01/10) - MBIA Insured
2,390 Solano County, California, Certificates of Participation, 11/12 at 100.00 AAA 2,592,576
Series 2002, 5.250%, 11/01/24 (Pre-refunded 11/01/12) -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
20,685 Total U.S. Guaranteed 22,016,986
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 5.6% (3.7% OF TOTAL INVESTMENTS)
1,000 Anaheim Public Finance Authority, California, Second Lien 10/14 at 100.00 AAA 1,093,090
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 3,224,339
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 294,789
Power System Revenue Bonds, Series 2003A-2,
5.000%, 7/01/21 - MBIA Insured
310 Merced Irrigation District, California, Electric System 9/15 at 100.00 AAA 333,436
Revenue Bonds, Series 2005, 5.125%, 9/01/31 - XLCA Insured
------------------------------------------------------------------------------------------------------------------------------------
4,640 Total Utilities 4,945,654
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 12.8% (8.4% OF TOTAL INVESTMENTS)
215 Healdsburg Public Financing Authority, California, Wastewater 4/16 at 100.00 AAA 230,145
Revenue Bonds, Series 2006, 5.000%, 4/01/36 - MBIA Insured
1,055 Manteca Financing Authority, California, Sewerage Revenue 12/13 at 100.00 Aaa 1,056,540
Bonds, Series 2003B, 5.000%, 12/01/33 - MBIA Insured
170 Marina Coast Water District, California, Enterprise Certificate 6/16 at 100.00 AAA 182,424
of Participation, Series 2006, 5.000%, 6/01/31 - MBIA Insured
61
Nuveen Insured California Tax-Free Advantage Municipal Fund (NKX) (continued)
Portfolio of INVESTMENTS February 28, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 370 Sacramento County Sanitation District Financing Authority, 6/16 at 100.00 AAA $ 398,520
California, Revenue Bonds, Series 2006, 5.000%, 12/01/36 -
FGIC 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 3,159,870
2,500 5.000%, 8/01/23 - MBIA Insured 8/12 at 100.00 AAA 2,633,225
1,180 South Feather Water and Power Agency, California, Water 4/13 at 100.00 BBB 1,253,148
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 1,666,800
Wastewater Revenue Bonds, Series 2001,
5.000%, 10/01/26 - AMBAC Insured
750 Westlands Water District, California, Revenue Certificates 9/16 at 100.00 AAA 803,010
of Participation, Series 2007A, 5.000%, 9/01/37 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
10,840 Total Water and Sewer 11,383,682
------------------------------------------------------------------------------------------------------------------------------------
$ 126,837 Total Long-Term Investments (cost $127,636,353) - 151.0% 134,410,124
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 1.1% (0.7% OF TOTAL INVESTMENTS)
1,000 Puerto Rico Government Development Bank, Adjustable A-1 1,000,000
Refunding Bonds, Variable Rate Demand Obligations,
Series 1985, 3.340%, 12/01/15 - MBIA Insured (5)
=============-----------------------------------------------------------------------------------------------------------------------
Total Short-Term Investments (cost $1,000,000) 1,000,000
--------------------------------------------------------------------------------------------------------------------
Total Investments (cost $128,636,353) - 152.1% 135,410,124
--------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (2.1)% (1,902,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.5% 520,459
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (50.5)% (45,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 89,028,583
====================================================================================================================
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) 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 Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
(UB) Underlying bond of an inverse floating rate trust
reflected as a financing transaction pursuant to the
provisions of SFAS No. 140.
See accompanying notes to financial statements.
62
Statement of
ASSETS AND LIABILITIES February 28, 2007 (Unaudited)
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
PREMIUM PREMIUM PREMIUM DIVIDEND
INCOME INCOME 2 INCOME ADVANTAGE
(NPC) (NCL) (NCU) (NAC)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $134,933,608,
$271,367,321, $120,957,385 and
$510,028,739, respectively) $145,476,257 $286,721,757 $127,830,806 $541,424,456
Cash -- 323,116 509,107 2,365,661
Receivables:
Interest 2,337,249 3,427,690 1,775,339 7,489,641
Investments sold -- 155,000 -- 2,101,337
Unrealized appreciation on forward swaps 665,721 809,962 -- 1,523,891
Other assets 8,649 34,587 6,422 49,328
------------------------------------------------------------------------------------------------------------------------------------
Total assets 148,487,876 291,472,112 130,121,674 554,954,314
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 86,582 -- -- --
Floating rate obligations 2,346,000 3,997,000 1,788,000 3,403,000
Payables:
Investments purchased -- -- -- 9,696,417
Variation margin on futures contracts -- -- -- 12,250
Unrealized depreciation on forward swaps 152,254 -- -- --
Accrued expenses:
Management fees 70,271 136,934 61,988 192,856
Other 34,300 67,225 41,224 105,000
Preferred share dividends payable 4,068 28,430 7,892 73,351
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 2,693,475 4,229,589 1,899,104 13,482,874
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 45,000,000 95,000,000 43,000,000 175,000,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $100,794,401 $192,242,523 $ 85,222,570 $366,471,440
====================================================================================================================================
Common shares outstanding 6,455,666 12,716,370 5,774,216 23,463,653
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 15.61 $ 15.12 $ 14.76 $ 15.62
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 64,557 $ 127,164 $ 57,742 $ 234,637
Paid-in surplus 89,361,743 176,228,808 78,298,267 333,327,178
Undistributed (Over-distribution of) net investment income 339,065 20,359 (1,542) (290,686)
Accumulated net realized gain (loss) from investments
and derivative transactions (27,080) (298,206) (5,318) 237,210
Net unrealized appreciation (depreciation ) of investments
and derivative transactions 11,056,116 16,164,398 6,873,421 32,963,101
====================================================================================================================================
Net assets applicable to Common shares $100,794,401 $192,242,523 $ 85,222,570 $366,471,440
====================================================================================================================================
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.
63
Statement of
ASSETS AND LIABILITIES February 28, 2007 (Unaudited) (continued)
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
DIVIDEND DIVENDED DIVIDEND TAX-FREE
ADVANTAGE 2 ADVANTAGE 3 ADVANTAGE ADVANTAGE
(NVX) (NZH) (NKL) (NKX)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $320,795,521,
$533,981,006, $341,048,938 and
$128,636,353, respectively) $338,542,912 $559,695,446 $364,041,441 $135,410,124
Cash -- 2,635,019 173,031 1,268,147
Receivables:
Interest 4,437,017 7,528,884 4,011,521 1,458,278
Investments sold 5,100 5,100 -- --
Unrealized appreciation on forward swaps 2,375,689 -- -- --
Other assets 21,947 33,720 21,091 8,948
------------------------------------------------------------------------------------------------------------------------------------
Total assets 345,382,665 569,898,169 368,247,084 138,145,497
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 393,991 -- -- --
Floating rate obligations 5,363,000 4,479,000 4,985,000 1,902,000
Payables:
Investments purchased -- 12,793,810 6,396,905 2,132,302
Variation margin on futures contracts -- -- -- --
Unrealized depreciation on forward swaps 1,196,283 -- -- --
Accrued expenses:
Management fees 96,207 154,370 87,662 32,012
Other 69,718 98,072 57,590 26,192
Preferred share dividends payable 26,369 73,069 22,305 24,408
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 7,145,568 17,598,321 11,549,462 4,116,914
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 110,000,000 187,000,000 118,000,000 45,000,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $228,237,097 $365,299,848 $238,697,622 $ 89,028,583
====================================================================================================================================
Common shares outstanding 14,793,014 24,121,405 15,276,039 5,884,395
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 15.43 $ 15.14 $ 15.63 $ 15.13
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 147,930 $ 241,214 $ 152,760 $ 58,844
Paid-in surplus 210,085,543 342,644,893 216,875,671 83,017,271
Undistributed (Over-distribution of) net investment income (451,915) (676,070) (271,698) (138,868)
Accumulated net realized gain (loss) from investments
and derivative transactions (471,258) (2,624,629) (1,051,614) (682,435)
Net unrealized appreciation (depreciation) of investments
and derivative transactions 18,926,797 25,714,440 22,992,503 6,773,771
====================================================================================================================================
Net assets applicable to Common shares $228,237,097 $365,299,848 $238,697,622 $ 89,028,583
====================================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
64
Statement of
OPERATIONS Six Months Ended February 28, 2007 (Unaudited)
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
PREMIUM PREMIUM PREMIUM DIVIDEND
INCOME INCOME 2 INCOME ADVANTAGE
(NPC) (NCL) (NCU) (NAC)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $3,513,067 $ 6,810,084 $3,097,024 $13,351,026
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 457,571 888,907 402,218 1,656,817
Preferred shares - auction fees 55,788 117,773 53,308 216,952
Preferred shares - dividend disbursing agent fees 4,959 9,918 4,959 9,918
Shareholders' servicing agent fees and expenses 3,860 6,712 2,388 2,386
Floating rate obligations interest expense and fees 25,077 42,682 19,091 35,848
Custodian's fees and expenses 18,571 40,216 18,995 56,811
Directors'/Trustees' fees and expenses 1,632 3,182 1,619 5,144
Professional fees 7,129 9,915 6,427 11,304
Shareholders' reports - printing and mailing expenses 6,254 14,714 5,486 19,967
Stock exchange listing fees 4,873 4,879 244 4,846
Investor relations expense 6,658 12,697 5,902 22,729
Other expenses 8,828 10,364 7,716 13,843
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense reimbursement 601,200 1,161,959 528,353 2,056,565
Custodian fee credit (10,367) (17,307) (10,290) (29,514)
Expense reimbursement -- -- -- (402,397)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 590,833 1,144,652 518,063 1,624,654
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 2,922,234 5,665,432 2,578,961 11,726,372
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments 230,094 431,033 15,222 549,609
Net realized gain (loss) from forward swaps -- 315,000 -- --
Net realized gain (loss) from futures -- -- -- 40,713
Change in net unrealized appreciation (depreciation)
of investments 487,603 1,062,655 1,004,247 1,436,788
Change in net unrealized appreciation (depreciation)
of forward swaps 183,977 (28,264) -- 685,462
Change in net unrealized appreciation (depreciation)
of futures -- -- -- 16,154
------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) 901,674 1,780,424 1,019,469 2,728,726
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (624,478) (1,501,863) (657,089) (2,652,721)
From accumulated net realized gains (118,086) -- (50,482) (310,662)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (742,564) (1,501,863) (707,571) (2,963,383)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares
from operations $3,081,344 $ 5,943,993 $2,890,859 $11,491,715
====================================================================================================================================
See accompanying notes to financial statements.
65
Statement of
OPERATIONS Six Months Ended February 28, 2007 (Unaudited) (continued)
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
DIVIDEND DIVENDED DIVIDEND TAX-FREE
ADVANTAGE 2 ADVANTAGE 3 ADVANTAGE ADVANTAGE
(NVX) (NZH) (NKL) (NKX)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $8,008,401 $13,035,609 $8,589,335 $3,146,637
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 1,044,386 1,684,782 1,098,293 419,041
Preferred shares - auction fees 136,369 231,828 146,288 55,788
Preferred shares - dividend disbursing agent fees 9,918 9,918 9,918 4,959
Shareholders' servicing agent fees and expenses 848 1,488 870 466
Floating rate obligations interest expense and fees 57,337 47,449 53,226 20,312
Custodian's fees and expenses 42,238 53,655 33,137 15,269
Directors'/Trustees' fees and expenses 3,655 5,765 4,083 1,593
Professional fees 10,133 13,805 10,583 6,902
Shareholders' reports - printing and mailing expenses 14,960 21,133 15,404 7,359
Stock exchange listing fees 624 1,017 644 248
Investor relations expense 14,535 23,134 15,228 5,920
Other expenses 13,541 15,056 12,706 9,086
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense reimbursement 1,348,544 2,109,030 1,400,380 546,943
Custodian fee credit (24,093) (32,677) (11,907) (9,213)
Expense reimbursement (418,578) (704,957) (528,811) (211,466)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 905,873 1,371,396 859,662 326,264
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 7,102,528 11,664,213 7,729,673 2,820,373
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments (65,244) 573,394 594,755 171,718
Net realized gain (loss) from forward swaps -- -- -- --
Net realized gain (loss) from futures -- -- -- --
Change in net unrealized appreciation (depreciation)
of investments 1,179,968 3,081,601 1,625,166 1,038,217
Change in net unrealized appreciation (depreciation)
of forward swaps 431,197 -- -- --
Change in net unrealized appreciation (depreciation)
of futures -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) 1,545,921 3,654,995 2,219,921 1,209,935
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (1,794,832) (3,146,761) (1,950,024) (710,136)
From accumulated net realized gains -- -- (10,666) --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (1,794,832) (3,146,761) (1,960,690) (710,136)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares
from operations $6,853,617 $12,172,447 $7,988,904 $3,320,172
====================================================================================================================================
See accompanying notes to financial statements.
66
Statement of
CHANGES IN NET ASSETS (Unaudited)
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
2/28/07 8/31/06 2/28/07 8/31/06 2/28/07 8/31/06
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 2,922,234 $ 5,915,395 $ 5,665,432 $ 11,430,157 $ 2,578,961 $ 5,122,184
Net realized gain (loss)
from investments 230,094 338,450 431,033 306,694 15,222 287,143
Net realized gain (loss) from
forward swaps -- -- 315,000 -- -- --
Net realized gain (loss) from futures -- -- -- -- -- --
Change in net unrealized
appreciation (depreciation)
of investments 487,603 (3,110,907) 1,062,655 (4,684,758) 1,004,247 (2,003,316)
Change in net unrealized
appreciation (depreciation)
of forward swaps 183,977 329,490 (28,264) 838,226 -- --
Change in net unrealized
appreciation (depreciation)
of futures -- -- -- -- -- --
Distributions to
Preferred shareholders:
From net investment income (624,478) (1,180,659) (1,501,863) (2,543,117) (657,089) (1,190,250)
From accumulated net
realized gains (118,086) (120,330) -- -- (50,482) (11,180)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets applicable
to Common shares
from operations 3,081,344 2,171,439 5,943,993 5,347,202 2,890,859 2,204,581
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (2,380,794) (5,325,135) (4,272,701) (9,670,803) (1,957,459) (4,451,921)
From accumulated net
realized gains (486,818) (881,569) -- -- (177,846) (70,445)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets
applicable to Common shares
from distributions to
Common shareholders (2,867,612) (6,206,704) (4,272,701) (9,670,803) (2,135,305) (4,522,366)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions -- 106,152 -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
capital share transactions -- 106,152 -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets applicable
to Common shares 213,732 (3,929,113) 1,671,292 (4,323,601) 755,554 (2,317,785)
Net assets applicable to
Common shares at the
beginning of period 100,580,669 104,509,782 190,571,231 194,894,832 84,467,016 86,784,801
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable
to Common shares at
the end of period $100,794,401 $100,580,669 $192,242,523 $190,571,231 $85,222,570 $84,467,016
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income
at the end of period $ 339,065 $ 422,103 $ 20,359 $ 129,491 $ (1,542) $ 34,045
====================================================================================================================================
See accompanying notes to financial statements.
67
Statement of
CHANGES IN NET ASSETS (Unaudited) (continued)
CALIFORNIA CALIFORNIA CALIFORNIA
DIVIDEND ADVANTAGE (NAC) DIVIDEND ADVANTAGE 2 (NVX) DIVIDEND ADVANTAGE 3 (NZH)
----------------------------- ----------------------------- -----------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
2/28/07 8/31/06 2/28/07 8/31/06 2/28/07 8/31/06
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 11,726,372 $ 23,690,415 $ 7,102,528 $ 14,317,853 $ 11,664,213 $ 23,480,537
Net realized gain (loss)
from investments 549,609 1,496,422 (65,244) 686,754 573,394 1,057,466
Net realized gain (loss) from
forward swaps -- -- -- -- -- --
Net realized gain (loss)
from futures 40,713 102,063 -- -- -- --
Change in net
unrealized appreciation
(depreciation) of
investments 1,436,788 (8,347,244) 1,179,968 (4,193,089) 3,081,601 (5,851,121)
Change in net unrealized
appreciation (depreciation)
of forward swaps 685,462 838,429 431,197 748,209 -- --
Change in net unrealized
appreciation (depreciation)
of futures 16,154 27,339 -- -- -- --
Distributions to
Preferred shareholders:
From net investment income (2,652,721) (4,964,723) (1,794,832) (3,160,483) (3,146,761) (5,401,864)
From accumulated net
realized gains (310,662) (111,335) -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets applicable
to Common shares
from operations 11,491,715 12,731,366 6,853,617 8,399,244 12,172,447 13,285,018
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (9,501,072) (21,230,311) (5,812,884) (12,379,782) (9,477,183) (20,073,933)
From accumulated net
realized gains (1,250,132) (782,285) -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from
distributions to
Common shareholders (10,751,204) (22,012,596) (5,812,884) (12,379,782) (9,477,183) (20,073,933)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions 214,765 532,651 36,491 -- 131,827 --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
capital share transactions 214,765 532,651 36,491 -- 131,827 --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets applicable
to Common shares 955,276 (8,748,579) 1,077,224 (3,980,538) 2,827,091 (6,788,915)
Net assets applicable to
Common shares at the
beginning of period 365,516,164 374,264,743 227,159,873 231,140,411 362,472,757 369,261,672
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to
Common shares at the
end of period $366,471,440 $365,516,164 $228,237,097 $227,159,873 $365,299,848 $362,472,757
====================================================================================================================================
Undistributed
(Over-distribution of)
net investment income
at the end of period $ (290,686) $ 136,735 $ (451,915) $ 53,273 $ (676,070) $ 283,661
====================================================================================================================================
See accompanying notes to financial statements.
68
INSURED CALIFORNIA INSURED CALIFORNIA
DIVIDEND ADVANTAGE (NKL) TAX-FREE ADVANTAGE (NKX)
----------------------------- -----------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED
2/28/07 8/31/06 2/28/07 8/31/06
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 7,729,673 $ 15,416,776 $ 2,820,373 $ 5,611,175
Net realized gain (loss) from investments 594,755 106,122 171,718 38,746
Net realized gain (loss) from
forward swaps -- 772,782 -- 297,454
Net realized gain (loss) from futures -- -- -- --
Change in net unrealized appreciation
(depreciation) of investments 1,625,166 (4,883,419) 1,038,217 (1,917,395)
Change in net unrealized appreciation
(depreciation) of forward swaps -- 191,673 -- 72,274
Change in net unrealized appreciation
(depreciation) of futures -- -- -- --
Distributions to Preferred shareholders:
From net investment income (1,950,024) (3,404,610) (710,136) (1,222,097)
From accumulated net realized
gains (10,666) -- -- --
Net increase (decrease) in net assets
applicable to Common shares
from operations 7,988,904 8,199,324 3,320,172 2,880,157
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (5,955,863) (13,002,466) (2,082,785) (4,377,177)
From accumulated net realized gains (39,709) -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions to
Common shareholders (5,995,572) (13,002,466) (2,082,785) (4,377,177)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions 179,701 73,640 16,391 --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
capital share transactions 179,701 73,640 16,391 --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares 2,173,033 (4,729,502) 1,253,778 (1,497,020)
Net assets applicable to Common
shares at the beginning of period 236,524,589 241,254,091 87,774,805 89,271,825
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $238,697,622 $236,524,589 $89,028,583 $87,774,805
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income
at the end of period $ (271,698) $ (95,484) $ (138,868) $ (166,320)
====================================================================================================================================
See accompanying notes to financial statements.
69
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 may establish fair value based on
yields or prices of municipal bonds of comparable quality, type of issue,
coupon, maturity and rating, indications of value from securities dealers,
evaluations of anticipated cash flows or collateral and general market
conditions. Prices of forward swap contacts are also provided by an independent
pricing service approved by each Fund's Board of Directors/Trustees. Futures
contracts are valued using the closing settlement price, or, in the absence or
such a price, at the mean of the bid and asked prices. If the pricing service is
unable to supply a price for a municipal bond, forward swap contract or futures
contact, 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 is 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 investments 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/delayed delivery basis may have extended
settlement periods. Any investments so purchased are subject to market
fluctuation during this period. The Funds have instructed the custodian to
segregate assets with a current value at least equal to the amount of the
when-issued/delayed delivery purchase commitments. At February 28, 2007,
California Dividend Advantage (NAC), California Dividend Advantage 3 (NZH),
Insured California Dividend Advantage (NKL) and Insured California Tax-Free
Advantage (NKX) had outstanding when-issued/delayed delivery purchase
commitments of $9,696,417, $12,793,810, $6,396,905 and $2,132,302, respectively.
There were no such outstanding purchase commitments in any of the other Funds.
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
Investment income also includes paydown gains and losses, if any.
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.
70
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 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.
Inverse Floating Rate Securities
Each Fund may invest in inverse floating rate securities. An inverse floating
rate security is created by depositing a municipal bond, typically with a fixed
interest rate, into a special purpose trust created by a broker-dealer. In turn,
this trust (a) issues floating rate certificates, in face amounts equal to some
fraction of the deposited bond's par amount or market value, that typically pay
short-term
71
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
tax-exempt interest rates to third parties, and (b) issues to a long-term
investor (such as one of the Funds) an inverse floating rate certificate
(sometimes referred to as an "inverse floater") that represents all remaining or
residual interest in the trust. The income received by the inverse floater
holder varies inversely with the short-term rate paid to the floating rate
certificates' holders, and in most circumstances the inverse floater holder
bears substantially all of the underlying bond's downside investment risk and
also benefits disproportionately from any potential appreciation of the
underlying bond's value. The price of an inverse floating rate security will be
more volatile than that of the underlying bond because the interest rate is
dependent on not only the fixed coupon rate of the underlying bond but also on
the short-term interest paid on the floating rate certificates, and because the
inverse floating rate security essentially bears the risk of loss of the greater
face value of the underlying bond.
A Fund may purchase an inverse floating rate security in a secondary market
transaction without first owning the underlying bond (referred to as an
"externally-deposited inverse floater"), or instead by first selling a
fixed-rate bond to a broker-dealer for deposit into the special purpose trust
and receiving in turn the residual interest in the trust (referred to as a
"self-deposited inverse floater"). An investment in an externally-deposited
inverse floater is identified in the Portfolio of Investments as an "Inverse
floating rate investment". An investment in a self-deposited inverse floater is
accounted for as a financing transaction in accordance with Statement of
Financial Accounting Standards (SFAS) No. 140 "Accounting for Transfers and
Servicing of Financial Assets and Extinguishment of Liabilities". In such
instances, a fixed-rate bond deposited into a special purpose trust is
identified in the Portfolio of Investments as an "Underlying bond of an inverse
floating rate trust", with the Fund accounting for the short-term floating rate
certificates issued by the trust as "Floating rate obligations" on the Statement
of Assets and Liabilities. In addition, the Fund reflects in Investment Income
the entire earnings of the underlying bond and accounts for the related interest
paid to the holders of the short-term floating rate certificates as "Floating
rate obligations interest expense and fees" in the Statement of Operations.
During the six months ended February 28, 2007, each Fund invested in externally
deposited inverse floaters and/or self-deposited inverse floaters.
The average floating rate obligations outstanding and average annual interest
rate and fees related to self-deposited inverse floaters during the six months
ended February 28, 2007, were as follows:
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
PREMIUM PREMIUM PREMIUM DIVIDEND
INCOME INCOME 2 INCOME ADVANTAGE
(NPC) (NCL) (NCU) (NAC)
----------------------------------------------------------------------------------------------------------
Average floating rate obligations $1,321,923 $2,250,006 $1,006,376 $1,889,442
Average annual interest rate and fees 3.83% 3.83% 3.83% 3.83%
==========================================================================================================
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
DIVIDEND DIVIDEND DIVIDEND TAX-FREE
ADVANTAGE 2 ADVANTAGE 3 ADVANTAGE ADVANTAGE
(NVX) (NZH) (NKL) (NKX)
----------------------------------------------------------------------------------------------------------
Average floating rate obligations $3,022,536 $2,501,088 $2,805,773 $1,070,751
Average annual interest rate and fees 3.83% 3.83% 3.83% 3.83%
==========================================================================================================
Forward Swap Transactions
The Funds are authorized to invest in certain derivative financial instruments.
Each Fund's use of forward interest rate swap transactions is intended to help
the Fund manage its overall interest rate sensitivity, either shorter or longer,
generally to more closely align the Fund's interest rate sensitivity with that
of the broader municipal market. Forward interest rate swap transactions involve
each Fund's agreement with a counterparty to pay, in the future, a fixed or
variable rate payment in exchange for the counterparty paying the Fund a
variable or fixed rate payment, the accruals for which would begin at a
specified date in the future (the "effective date"). The amount of the payment
obligation is based on the notional amount of the forward swap contract and the
termination date of the swap (which is akin to a bond's maturity). The value of
the Fund's swap commitment would increase or decrease based primarily on the
extent to which long-term interest rates for bonds having a maturity of the
swap's termination date increases or decreases. The
72
Funds may terminate a swap contract prior to the effective date, at which point
a realized gain or loss is recognized. When a forward swap is terminated, it
ordinarily does not involve the delivery of securities or other underlying
assets or principal, but rather is settled in cash on a net basis. Each Fund
intends, but is not obligated, to terminate its forward swaps before the
effective date. Accordingly, the risk of loss with respect to the swap
counterparty on such transactions is limited to the credit risk associated with
a counterparty failing to honor its commitment to pay any realized gain to the
Fund upon termination. To reduce such credit risk, all counterparties are
required to pledge collateral daily (based on the daily valuation of each swap)
on behalf of each Fund with a value approximately equal to the amount of any
unrealized gain above a pre-determined threshold. Reciprocally, when any of the
Funds have an unrealized loss on a swap contract, the Funds have instructed the
custodian to pledge assets of the Funds as collateral with a value approximately
equal to the amount of the unrealized loss above a pre-determined threshold.
Collateral pledges are monitored and subsequently adjusted if and when the swap
valuations fluctuate, either up or down, by at least the predetermined threshold
amount.
Futures Contracts
The Funds are authorized to invest in futures contracts. Upon entering into a
futures contract, a Fund is required to deposit with the broker an amount of
cash or liquid securities equal to a specified percentage of the contract
amount. This is known as the "initial margin." Subsequent payments ("variation
margin") are made or received by a Fund each day, depending on the daily
fluctuation of the value of the contract.
During the period the futures contract is open, changes in the value of the
contract are recognized as an unrealized gain or loss by "marking-to-market" on
a daily basis to reflect the changes in market value of the contract. When the
contract is closed or expired, a Fund records a realized gain or loss equal to
the difference between the value of the contract on the closing date and value
of the contract when originally entered into. Cash held by the broker to cover
initial margin requirements on open futures contracts, if any, is noted in the
Statement of Assets and Liabilities. Additionally, the Statement of Assets and
Liabilities reflects a receivable or payable for the variation margin when
applicable.
Risks of investments in futures contracts include the possible adverse movement
of the securities or indices underlying the contracts, the possibility that
there may not be a liquid secondary market for the contracts and/or that a
change in the value of the contract may not correlate with a change in the value
of the underlying securities or indices.
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 YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
2/28/07 8/31/06 2/28/07 8/31/06 2/28/07 8/31/06
----------------------------------------------------------------------------------------------------------
Common shares issued
to shareholders
due to reinvestment
of distributions -- 6,731 -- -- -- --
==========================================================================================================
CALIFORNIA DIVIDEND CALIFORNIA DIVIDEND CALIFORNIA DIVIDEND
ADVANTAGE (NAC) ADVANTAGE 2 (NVX) ADVANTAGE 3 (NZH)
----------------------- ----------------------- -----------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
2/28/07 8/31/06 2/28/07 8/31/06 2/28/07 8/31/06
----------------------------------------------------------------------------------------------------------
Common shares issued
to shareholders
due to reinvestment
of distributions 13,392 33,399 2,354 -- 8,572 --
==========================================================================================================
73
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
INSURED INSURED
CALIFORNIA DIVIDEND CALIFORNIA TAX-FREE
ADVANTAGE (NKL) ADVANTAGE (NKX)
----------------------- -----------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
2/28/07 8/31/06 2/28/07 8/31/06
----------------------------------------------------------------------------------------------------------
Common shares issued to shareholders
due to reinvestment of distributions 11,484 4,796 1,093 --
==========================================================================================================
3. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities but excluding short-term investments
and derivative transactions) during the six months ended February 28, 2007, were
as follows:
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
PREMIUM PREMIUM PREMIUM DIVIDEND
INCOME INCOME 2 INCOME ADVANTAGE
(NPC) (NCL) (NCU) (NAC)
----------------------------------------------------------------------------------------------------------
Purchases $9,112,666 $23,662,577 $4,591,564 $20,304,196
Sales and maturities 7,846,430 20,162,224 2,530,866 17,524,785
==========================================================================================================
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
DIVIDEND DIVIDEND DIVIDEND TAX-FREE
ADVANTAGE 2 ADVANTAGE 3 ADVANTAGE ADVANTAGE
(NVX) (NZH) (NKL) (NKX)
----------------------------------------------------------------------------------------------------------
Purchases $16,486,011 $25,673,919 $15,499,515 $6,928,304
Sales and maturities 10,933,608 20,655,507 11,732,247 4,493,376
==========================================================================================================
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, timing differences in recognizing
certain gains and losses on investment transactions and the treatment of
investments in inverse floating rate transactions subject to SFAS No.140. To the
extent that differences arise that are permanent in nature, such amounts are
reclassified within the capital accounts on the Statement of Assets and
Liabilities presented in the annual report, based on their federal tax basis
treatment; temporary differences do not require reclassification. Temporary and
permanent differences do not impact the net asset values of the Funds.
At February 28, 2007, 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 $132,548,448 $267,215,132 $119,107,205 $506,386,050
==========================================================================================================
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
DIVIDEND DIVIDEND DIVIDEND TAX-FREE
ADVANTAGE 2 ADVANTAGE 3 ADVANTAGE ADVANTAGE
(NVX) (NZH) (NKL) (NKX)
----------------------------------------------------------------------------------------------------------
Cost of investments $315,420,102 $529,523,654 $337,497,082 $127,210,723
==========================================================================================================
74
Gross unrealized appreciation and gross unrealized depreciation of investments
at February 28, 2007, 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 $10,582,046 $15,528,684 $6,943,206 $31,648,206
Depreciation -- (19,142) (7,961) (12,020)
----------------------------------------------------------------------------------------------------------
Net unrealized appreciation
(depreciation) of investments $10,582,046 $15,509,542 $6,935,245 $31,636,186
==========================================================================================================
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
DIVIDEND DIVIDEND DIVIDEND TAX-FREE
ADVANTAGE 2 ADVANTAGE 3 ADVANTAGE ADVANTAGE
(NVX) (NZH) (NKL) (NKX)
----------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $17,823,955 $26,195,129 $23,204,400 $6,787,124
Depreciation (63,649) (501,923) (1,645,440) (489,813)
----------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation)
of investments $17,760,306 $25,693,206 $21,558,960 $6,297,311
==========================================================================================================
The tax components of undistributed net tax-exempt income, net ordinary income
and net long-term capital gains at August 31, 2006, 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 * $757,514 $744,833 $324,441 $1,642,940
Undistributed net ordinary income ** 46,081 3,783 -- 121
Undistributed net long-term capital gains 347,730 -- 213,601 1,235,021
==========================================================================================================
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 * $1,042,127 $1,925,249 $782,973 $195,333
Undistributed net ordinary income ** -- -- -- --
Undistributed net long-term capital gains -- -- 49,448 --
==========================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on August 1, 2006, paid on September 1, 2006.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
The tax character of distributions paid during the Funds' last tax year ended
August 31, 2006, 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 $6,489,050 $12,330,721 $5,697,561 $26,436,381
Distributions from net ordinary income ** 79,771 -- -- --
Distributions from net long-term capital gains 1,001,943 -- 81,625 893,620
==========================================================================================================
75
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
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 $15,681,327 $25,609,086 $16,451,218 $5,633,072
Distributions from net ordinary income ** -- -- -- --
Distributions from net long-term capital gains -- -- -- --
==========================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
At August 31, 2006, 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 $ 585,620 $ -- $ -- $ --
2010 440,510 -- -- --
2011 -- -- 2,849,060 278,553
2012 -- 406,014 323,840 --
2013 -- -- -- --
2014 -- -- -- 85,788
----------------------------------------------------------------------------------------------------------
Total $1,026,130 $406,014 $3,172,900 $364,341
==========================================================================================================
Insured California Premium Income 2 (NCL) elected to defer net realized losses
from investments incurred from November 1, 2005 through August 31, 2006
("post-October losses") in accordance with Federal income tax regulations.
Post-October losses of $18,677 were treated as having arisen on the first day of
the current fiscal year.
5. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Each Fund's management fee is separated into two components - a complex-level
component, based on the aggregate amount of all fund assets managed by Nuveen
Asset Management (the "Adviser"), a wholly owned subsidiary of Nuveen
Investments, Inc. ("Nuveen"), 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.
76
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 CALIFORNIA PREMIUM INCOME (NCU)
ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For the next $3 billion .3875
For net assets over $5 billion .3750
================================================================================
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 INSURED CALIFORNIA TAX-FREE ADVANTAGE (NKX)
ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For net assets over $2 billion .3750
================================================================================
The annual complex-level fee, payable monthly, which is additive to the
fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the
aggregate amount of total fund assets managed as stated in the table below. As
of February 28, 2007, the complex-level fee rate was .1837%.
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
preferred stock issued by or borrowings 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.
77
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Directors/Trustees who are affiliated with
the Adviser or to its Officers, all of whom receive remuneration for their
services to the Funds from the Adviser or its affiliates. The Board of
Directors/Trustees has adopted a deferred compensation plan for independent
Directors/Trustees that enables Directors/Trustees to elect to defer receipt of
all or a portion of the annual compensation they are entitled to receive from
certain Nuveen advised Funds. Under the plan, deferred amounts are treated as
though equal dollar amounts had been invested in shares of select Nuveen advised
Funds.
For the first ten years of California Dividend Advantage's (NAC) operations, the
Adviser has agreed to reimburse the Fund, as a percentage of average daily net
assets (including net assets attributable to Preferred shares), for fees and
expenses in the amounts and for the time periods set forth below:
YEAR ENDING YEAR ENDING
JULY 31, JULY 31,
--------------------------------------------------------------------------------
1999* .30% 2005 .25%
2000 .30 2006 .20
2001 .30 2007 .15
2002 .30 2008 .10
2003 .30 2009 .05
2004 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse California Dividend Advantage (NAC) for
any portion of its fees and expenses beyond July 31, 2009.
For the first ten years of California Dividend Advantage 2's (NVX) operations,
the Adviser has agreed to reimburse the Fund, as a percentage of average daily
net assets (including net assets attributable to Preferred shares), for fees and
expenses in the amounts and for the time periods set forth below:
YEAR ENDING YEAR ENDING
MARCH 31, MARCH 31,
--------------------------------------------------------------------------------
2001* .30% 2007 .25%
2002 .30 2008 .20
2003 .30 2009 .15
2004 .30 2010 .10
2005 .30 2011 .05
2006 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse California Dividend Advantage 2 (NVX)
for any portion of its fees and expenses beyond March 31, 2011.
For the first ten years of California Dividend Advantage 3's (NZH) operations,
the Adviser has agreed to reimburse the Fund, as a percentage of average daily
net assets (including net assets attributable to Preferred shares), for fees and
expenses in the amounts and for the time periods set forth below:
YEAR ENDING YEAR ENDING
SEPTEMBER 30, SEPTEMBER 30,
--------------------------------------------------------------------------------
2001* .30% 2007 .25%
2002 .30 2008 .20
2003 .30 2009 .15
2004 .30 2010 .10
2005 .30 2011 .05
2006 .30
================================================================================
* From the commencement of operations.
78
The Adviser has not agreed to reimburse California Dividend Advantage 3 (NZH)
for any portion of its fees and expenses beyond September 30, 2011.
For the first ten years of Insured California Dividend Advantage's (NKL)
operations, the Adviser has agreed to reimburse the Fund, as a percentage of
average daily net assets (including net assets attributable to Preferred
shares), for fees and expenses in the amounts and for the time periods set forth
below:
YEAR ENDING YEAR ENDING
MARCH 31, MARCH 31,
--------------------------------------------------------------------------------
2002* .30% 2008 .25%
2003 .30 2009 .20
2004 .30 2010 .15
2005 .30 2011 .10
2006 .30 2012 .05
2007 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Insured California Dividend Advantage
(NKL) for any portion of its fees and expenses beyond March 31, 2012.
For the first eight years of Insured California Tax-Free Advantage's (NKX)
operations, the Adviser has agreed to reimburse the Fund, as a percentage of
average daily net assets (including net assets attributable to Preferred
shares), for fees and expenses in the amounts and for the time periods set forth
below:
YEAR ENDING YEAR ENDING
NOVEMBER 30, NOVEMBER 30,
--------------------------------------------------------------------------------
2002* .32% 2007 .32%
2003 .32 2008 .24
2004 .32 2009 .16
2005 .32 2010 .08
2006 .32
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Insured California Tax-Free Advantage
(NKX) for any portion of its fees and expenses beyond November 30, 2010.
6. NEW ACCOUNTING PRONOUNCEMENTS
Financial Accounting Standards Board Interpretation No. 48
On July 13, 2006, the Financial Accounting Standards Board (FASB) released FASB
Interpretation No. 48 Accounting for Uncertainty in Income Taxes (FIN 48). FIN
48 provides guidance for how uncertain tax positions should be recognized,
measured, presented and disclosed in the financial statements. FIN 48 requires
the evaluation of tax positions taken or expected to be taken in the course of
preparing the Fund's tax returns to determine whether the tax positions are
"more-likely-than-not" of being sustained by the applicable tax authority. Tax
positions not deemed to meet the more-likely-than-not threshold would be
recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is
required for fiscal years beginning after December 15, 2006 and is to be applied
to all open tax years as of the effective date. Recent SEC guidance allows funds
to delay implementing FIN 48 into NAV calculations until the fund's last NAV
calculation in the first required financial statement reporting period. As a
result, the Funds must begin to incorporate FIN 48 into their NAV calculations
by August 31, 2007. At this time, management is continuing to evaluate the
implications of FIN 48 and does not expect the adoption of FIN 48 will have a
significant impact on the net assets or results of operations of the Funds.
Financial Accounting Standards Board Statement of Financial Accounting
Standards No. 157
In September 2006, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards (SFAS) No. 157, "Fair Value
Measurements." This standard establishes a single authoritative definition of
fair value, sets out a framework for measuring fair value and requires
additional disclosures about fair value measurements. SFAS No. 157 applies to
fair value measurements already required or permitted by existing standards.
SFAS No. 157 is effective for financial statements issued for fiscal years
beginning after November 15, 2007 and interim periods within those fiscal years.
The changes to current generally accepted accounting principles from the
application of this standard relate to the definition of fair value, the methods
used to measure fair value, and the expanded disclosures about fair value
measurements. As of February 28, 2007, the Funds do not believe the adoption of
SFAS No. 157 will impact the financial statement amounts; however, additional
disclosures may be required about the inputs used to develop the measurements
and the effect of certain of the measurements included within the Statement of
Operations for the period.
79
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
7. SUBSEQUENT EVENTS
Distributions to Common Shareholders
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on April 2, 2007, to shareholders of record on
March 15, 2007, as follows:
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
DIVIDEND DIVIDEND DIVIDEND TAX-FREE
ADVANTAGE 2 ADVANTAGE 3 ADVANTAGE ADVANTAGE
(NVX) (NZH) (NKL) (NKX)
----------------------------------------------------------------------------------------------------------
Dividend per share $.0605 $.0560 $.0565 $.0650
==========================================================================================================
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
DIVIDEND DIVIDEND DIVIDEND TAX-FREE
ADVANTAGE 2 ADVANTAGE 3 ADVANTAGE ADVANTAGE
(NVX) (NZH) (NKL) (NKX)
----------------------------------------------------------------------------------------------------------
Dividend per share $.0630 $.0630 $.0650 $.0590
==========================================================================================================
80
Financial
HIGHLIGHTS (Unaudited)
81
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:
2007(b) $15.58 $ .45 $ .15 $(.10) $(.02) $ .48 $(.37) $(.08) $ (.45)
2006 16.21 .92 (.38) (.18) (.02) .34 (.83) (.14) (.97)
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)
INSURED CALIFORNIA
PREMIUM INCOME 2 (NCL)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2007(b) 14.99 .45 .14 (.12) -- .47 (.34) -- (.34)
2006 15.33 .90 (.28) (.20) -- .42 (.76) -- (.76)
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)
CALIFORNIA PREMIUM
INCOME (NCU)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2007(b) 14.63 .45 .17 (.11) (.01) .50 (.34) (.03) (.37)
2006 15.03 .89 (.30) (.21) -- .38 (.77) (.01) (.78)
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)
====================================================================================================================================
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:
2007(b) $ -- $15.61 $15.12 3.24% 3.07%
2006 -- 15.58 15.08 1.00 2.23
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
INSURED CALIFORNIA
PREMIUM INCOME 2 (NCL)
--------------------------------------------------------------------------------------------
Year Ended 8/31:
2007(b) -- 15.12 14.35 3.53 3.13
2006 -- 14.99 14.19 (.63) 2.91
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
CALIFORNIA PREMIUM
INCOME (NCU)
--------------------------------------------------------------------------------------------
Year Ended 8/31:
2007(b) -- 14.76 14.18 3.91 3.45
2006 -- 14.63 14.01 3.14 2.72
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
============================================================================================
Ratios/Supplemental Data
-------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets Ratios to Average Net Assets
Applicable to Common Shares Applicable to Common Shares
Before Credit/Reimbursement After Credit/Reimbursement***
-------------------------------------------- -------------------------------------------
Ending
Net
Assets
Applicable Expenses Expenses Net Expenses Expenses Net Portfolio
to Common Including Excluding Investment Including Excluding Investment Turnover
Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate
====================================================================================================================================
INSURED
CALIFORNIA
PREMIUM
INCOME (NPC)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2007(b) $100,794 1.20%* 1.15%* 5.83%* 1.18%* 1.13%* 5.85%* 5%
2006 100,581 1.16 1.16 5.89 1.15 1.15 5.90 9
2005 104,510 1.14 1.14 5.85 1.13 1.13 5.86 9
2004 104,618 1.17 1.17 6.17 1.16 1.16 6.17 25
2003 100,427 1.17 1.17 6.13 1.16 1.16 6.14 26
2002 104,137 1.21 1.21 6.65 1.19 1.19 6.66 30
INSURED
CALIFORNIA
PREMIUM
INCOME 2 (NCL)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2007(b) 192,243 1.23* 1.18* 5.96* 1.21* 1.16* 5.97* 7
2006 190,571 1.20 1.20 6.05 1.19 1.19 6.05 14
2005 194,895 1.17 1.17 6.03 1.17 1.17 6.03 7
2004 192,035 1.19 1.19 6.38 1.19 1.19 6.38 35
2003 185,181 1.20 1.20 6.53 1.19 1.19 6.54 22
2002 190,870 1.23 1.23 6.83 1.22 1.22 6.84 6
CALIFORNIA
PREMIUM
INCOME (NCU)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2007(b) 85,223 1.26* 1.21* 6.11* 1.23* 1.19* 6.13* 2
2006 84,467 1.23 1.23 6.09 1.21 1.21 6.10 20
2005 86,785 1.21 1.21 6.08 1.20 1.20 6.09 13
2004 83,772 1.23 1.23 6.62 1.22 1.22 6.63 19
2003 78,859 1.24 1.24 6.72 1.24 1.24 6.72 24
2002 83,249 1.27 1.27 7.07 1.26 1.26 7.08 10
====================================================================================================================================
Floating Rate Obligations
Preferred Shares at End of Period at End of Period
-------------------------------------- -------------------------
Aggregate Liquidation Aggregate
Amount and Market Asset Amount Asset
Outstanding Value Coverage Outstanding Coverage
(000) Per Share Per Share (000) Per $1,000
================================================================================
INSURED CALIFORNIA PREMIUM INCOME (NPC)
--------------------------------------------------------------------------------
Year Ended 8/31:
2007(b) $45,000 $25,000 $80,997 $2,346 $63,146
2006 45,000 25,000 80,878 -- --
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 -- --
INSURED CALIFORNIA PREMIUM INCOME 2 (NCL)
--------------------------------------------------------------------------------
Year Ended 8/31:
2007(b) 95,000 25,000 75,590 3,997 72,865
2006 95,000 25,000 75,150 -- --
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 -- --
CALIFORNIA PREMIUM INCOME (NCU)
--------------------------------------------------------------------------------
Year Ended 8/31:
2007(b) 43,000 25,000 74,548 1,788 72,713
2006 43,000 25,000 74,109 -- --
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 -- --
================================================================================
* Annualized.
** Total 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) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the six months ended February 28, 2007.
See accompanying notes to financial statements.
82-83 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:
2007(c) $15.59 $ .50 $ .11 $(.11) $(.01) $ .49 $(.41) $(.05) $ (.46)
2006 15.98 1.01 (.25) (.21) -- .55 (.91) (.03) (.94)
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)
CALIFORNIA DIVIDEND
ADVANTAGE 2 (NVX)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2007(c) 15.36 .48 .10 (.12) -- .46 (.39) -- (.39)
2006 15.63 .97 (.19) (.21) -- .57 (.84) -- (.84)
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)
CALIFORNIA DIVIDEND
ADVANTAGE 3 (NZH)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2007(c) 15.03 .48 .15 (.13) -- .50 (.39) -- (.39)
2006 15.31 .97 (.20) (.22) -- .55 (.83) -- (.83)
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)
====================================================================================================================================
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:
2007(c) $ -- $15.62 $15.92 2.59% 3.16%
2006 -- 15.59 15.97 5.47 3.63
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
CALIFORNIA DIVIDEND
ADVANTAGE 2 (NVX)
----------------------------------------------------------------------------------------
Year Ended 8/31:
2007(c) -- 15.43 15.24 4.57 3.04
2006 -- 15.36 14.95 4.19 3.82
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
CALIFORNIA DIVIDEND
ADVANTAGE 3 (NZH)
----------------------------------------------------------------------------------------
Year Ended 8/31:
2007(c) -- 15.14 15.12 4.56 3.38
2006 -- 15.03 14.84 8.50 3.81
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
========================================================================================
Ratios/Supplemental Data
-------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets Ratios to Average Net Assets
Applicable to Common Shares Applicable to Common Shares
Before Credit/Reimbursement After Credit/Reimbursement***
-------------------------------------------- -------------------------------------------
Ending
Net
Assets
Applicable Expenses Expenses Net Expenses Expenses Net Portfolio
to Common Including Excluding Investment Including Excluding Investment Turnover
Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate
====================================================================================================================================
CALIFORNIA
DIVIDEND
ADVANTAGE (NAC)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2007(c) $366,471 1.13%* 1.11%* 6.22%* .90%* .88%* 6.46%* 3%
2006 365,516 1.13 1.13 6.22 .83 .83 6.51 13
2005 374,265 1.12 1.12 6.22 .75 .75 6.59 4
2004 365,066 1.14 1.14 6.38 .70 .70 6.83 12
2003 346,918 1.15 1.15 6.44 .70 .70 6.88 11
2002 356,821 1.18 1.18 6.76 .72 .72 7.22 33
CALIFORNIA
DIVIDEND
ADVANTAGE 2 (NVX)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2007(c) 228,237 1.19* 1.14* 5.90* .80* .75* 6.29* 3
2006 227,160 1.16 1.16 5.94 .73 .73 6.36 9
2005 231,140 1.16 1.16 5.94 .70 .70 6.40 3
2004 221,395 1.18 1.18 6.24 .72 .72 6.70 13
2003 209,722 1.18 1.18 6.30 .73 .73 6.75 40
2002 218,814 1.19 1.19 6.82 .73 .73 7.28 32
CALIFORNIA
DIVIDEND
ADVANTAGE 3 (NZH)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2007(c) 365,300 1.17* 1.14* 6.06* .76* .73* 6.47* 4
2006 362,473 1.16 1.16 6.08 .70 .70 6.54 10
2005 369,262 1.17 1.17 6.05 .70 .70 6.51 5
2004 353,360 1.20 1.20 6.32 .73 .73 6.78 13
2003 330,829 1.20 1.20 6.33 .73 .73 6.79 48
2002(b) 345,470 1.15* 1.15* 6.01* .69* .69* 6.47* 49
====================================================================================================================================
Floating Rate Obligations
Preferred Shares at End of Period at End of Period
-------------------------------------- -------------------------
Aggregate Liquidation Aggregate
Amount and Market Asset Amount Asset
Outstanding Value Coverage Outstanding Coverage
(000) Per Share Per Share (000) Per $1,000
================================================================================
CALIFORNIA DIVIDEND ADVANTAGE (NAC)
--------------------------------------------------------------------------------
Year Ended 8/31:
2007(c) $175,000 $25,000 $77,353 $3,403 $160,116
2006 175,000 25,000 77,217 -- --
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 -- --
CALIFORNIA DIVIDEND ADVANTAGE 2 (NVX)
--------------------------------------------------------------------------------
Year Ended 8/31:
2007(c) 110,000 25,000 76,872 5,363 64,069
2006 110,000 25,000 76,627 -- --
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 -- --
CALIFORNIA DIVIDEND ADVANTAGE 3 (NZH)
--------------------------------------------------------------------------------
Year Ended 8/31:
2007(c) 187,000 25,000 73,837 4,479 124,309
2006 187,000 25,000 73,459 -- --
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 -- --
================================================================================
* Annualized.
** Total 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) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the period September 25, 2001 (commencement of operations) through
August 31, 2002.
(c) For the six months ended February 28, 2007.
See accompanying notes to financial statements.
84-85 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
====================================================================================================================================
INSURED CALIFORNIA DIVIDEND ADVANTAGE (NKL)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2007(d) $15.50 $ .51 $ .14 $(.13) $ -- $ .52 $(.39) $ -- $ (.39)
2006 15.81 1.01 (.25) (.22) -- .54 (.85) -- (.85)
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(b) 14.33 .34 .92 (.03) -- 1.23 (.30) -- (.30)
INSURED CALIFORNIA TAX-FREE ADVANTAGE (NKX)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2007(d) 14.92 .48 .20 (.12) -- .56 (.35) -- (.35)
2006 15.17 .95 (.25) (.21) -- .49 (.74) -- (.74)
2005 14.62 .96 .57 (.13) -- 1.40 (.85) -- (.85)
2004 13.79 .96 .84 (.06) -- 1.74 (.91) -- (.91)
2003(c) 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**
=========================================================================================
INSURED CALIFORNIA
DIVIDEND
ADVANTAGE (NKL)
-----------------------------------------------------------------------------------------
Year Ended 8/31:
2007(d) $ -- $15.63 $15.45 .91% 3.40%
2006 -- 15.50 15.70 10.72 3.62
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(b) (.12) 15.14 15.00 2.05 7.84
INSURED CALIFORNIA
TAX-FREE
ADVANTAGE (NKX)
-----------------------------------------------------------------------------------------
Year Ended 8/31:
2007(d) -- 15.13 14.73 5.72 3.81
2006 -- 14.92 14.27 4.56 3.43
2005 -- 15.17 14.38 7.46 9.84
2004 -- 14.62 14.19 11.54 12.86
2003(c) (.21) 13.79 13.56 (5.79) .34
=========================================================================================
Ratios/Supplemental Data
------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets Ratios to Average Net Assets
Applicable to Common Shares Applicable to Common Shares
Before Credit/Reimbursement After Credit/Reimbursement***
-------------------------------------------- -------------------------------------------
Ending
Net
Assets
Applicable Expenses Expenses Net Expenses Expenses Net Portfolio
to Common Including Excluding Investment Including Excluding Investment Turnover
Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate
====================================================================================================================================
INSURED CALIFORNIA
DIVIDEND
ADVANTAGE (NKL)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2007(d) $238,698 1.19%* 1.14%* 6.10%* .73%* .68%* 6.56%* 3%
2006 236,525 1.17 1.17 6.12 .71 .71 6.58 3
2005 241,254 1.16 1.16 6.06 .71 .71 6.51 4
2004 234,186 1.18 1.18 6.28 .72 .72 6.74 14
2003 222,751 1.18 1.18 6.00 .72 .72 6.46 71
2002(b) 231,062 1.10* 1.10* 4.98* .60* .60* 5.47* 12
INSURED CALIFORNIA
TAX-FREE
ADVANTAGE (NKX)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2007(d) 89,029 1.25* 1.20* 5.94* .75* .70* 6.44* 3
2006 87,775 1.22 1.22 5.97 .73 .73 6.46 4
2005 89,272 1.21 1.21 5.95 .73 .73 6.43 3
2004 86,008 1.23 1.23 6.17 .73 .73 6.67 20
2003(c) 81,141 1.14* 1.14* 5.25* .67* .67* 5.72* 45
====================================================================================================================================
Floating Rate Obligations
Preferred Shares at End of Period at End of Period
-------------------------------------- -------------------------
Aggregate Liquidation Aggregate
Amount and Market Asset Amount Asset
Outstanding Value Coverage Outstanding Coverage
(000) Per Share Per Share (000) Per $1,000
================================================================================
INSURED CALIFORNIA DIVIDEND ADVANTAGE (NKL)
--------------------------------------------------------------------------------
Year Ended 8/31:
2007(d) $118,000 $25,000 $75,572 $4,985 $72,554
2006 118,000 25,000 75,111 -- --
2005 118,000 25,000 76,113 -- --
2004 118,000 25,000 74,616 -- --
2003 118,000 25,000 72,193 -- --
2002(b) 118,000 25,000 73,954 -- --
INSURED CALIFORNIA TAX-FREE ADVANTAGE (NKX)
--------------------------------------------------------------------------------
Year Ended 8/31:
2007(d) 45,000 25,000 74,460 1,902 71,467
2006 45,000 25,000 73,764 -- --
2005 45,000 25,000 74,595 -- --
2004 45,000 25,000 72,782 -- --
2003(c) 45,000 25,000 70,078 -- --
================================================================================
* Annualized.
** Total 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) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the period March 25, 2002 (commencement of operations) through August
31, 2002.
(c) For the period November 21, 2002 (commencement of operations) through
August 31, 2003.
(d) For the six months ended February 28, 2007.
See accompanying notes to financial statements.
86-87 spread
Reinvest Automatically
EASILY AND CONVENIENTLY
Sidebar text: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET
UP YOUR REINVESTMENT ACCOUNT.
NUVEEN CLOSED-END FUNDS
DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End Fund allows you to conveniently reinvest dividends and/or
capital gains distributions in additional fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
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.
88
Automatic Dividend
REINVESTMENT PLAN
NOTICE OF AMENDMENT TO THE TERMS AND CONDITIONS
These Funds are amending the terms and conditions of their Automatic Dividend
Reinvestment Plan (the ''Plan'') as further described below effective with the
close of business on June 1, 2007. THESE CHANGES ARE INTENDED TO ENABLE PLAN
PARTICIPANTS UNDER CERTAIN CIRCUMSTANCES TO REINVEST FUND DISTRIBUTIONS AT A
LOWER AGGREGATE COST THAN IS POSSIBLE UNDER THE EXISTING PLAN. Shareholders who
do not wish to continue as participants under the amended Plan may withdraw from
the Plan by notifying the Plan Agent prior to the effective date of the
amendments. Participants should refer to their Plan document for notification
instructions, or may simply call Nuveen at (800) 257-8787.
Fund shareholders who elect to participate in the Plan are able to have Fund
distributions consisting of income dividends, realized capital gains and returns
of capital automatically reinvested in additional Fund shares. Under the Plan's
existing terms, the Plan Agent purchases Fund shares in the open market if the
Fund's shares are trading at a discount to their net asset value on the payable
date for the distribution. If the Fund's shares are trading at or above their
net asset value on the payable date for the distribution, the Plan Agent
purchases newly-issued Fund shares directly from the Fund at a price equal to
the greater of the shares' net asset value or 95% of the shares' market value.
Under the Plan's amended terms, if the Plan Agent begins purchasing Fund shares
on the open market while shares are trading below net asset value, but the
Fund's shares subsequently trade at or above their net asset value before the
Plan Agent is able to complete its purchases, the Plan Agent may cease
open-market purchases and may invest the uninvested portion of the distribution
in newly-issued Fund shares at a price equal to the greater of the shares' net
asset value or 95% of the shares' market value. This change will permit Plan
participants under these circumstances to reinvest Fund distributions at a lower
aggregate cost than is possible under the existing Plan.
89
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 the number of years to maturity of
the bonds in a Fund's portfolio, computed by weighting each bond's time to
maturity (the date the security comes due) by the market value of the security.
This figure does not account for the likelihood of prepayments or the exercise
of call provisions unless an escrow account has been established to redeem the
bond before maturity. The market value weighting for an investment in an inverse
floating rate security is the value of the portfolio's residual interest in the
inverse floating rate trust, and does not include the value of the floating rate
securities issued by the trust.
INVERSE FLOATERS: Inverse floating rate securities are created by depositing a
municipal bond, typically with a fixed interest rate, into a special purpose
trust created by a broker-dealer. This trust, in turn, (a) issues floating rate
certificates typically paying short-term tax-exempt interest rates to third
parties in amounts equal to some fraction of the deposited bond's par amount or
market value, and (b) issues an inverse floating rate certificate (sometimes
referred to as an "inverse floater") to an investor (such as a Fund) interested
in gaining investment exposure to a long-term municipal bond. The income
received by the holder of the inverse floater varies inversely with the
short-term rate paid to the floating rate certificates' holders, and in most
circumstances the holder of the inverse floater bears substantially all of the
underlying bond's downside investment risk. The holder of the inverse floater
typically also benefits disproportionately from any potential appreciation of
the underlying bond's value. Hence, an inverse floater essentially represents an
investment in the underlying bond on a leveraged basis.
LEVERAGE-ADJUSTED DURATION: Duration is a measure of the expected period over
which a bond's principal and interest will be paid, and consequently is a
measure of the sensitivity of a bond's or bond Fund's value to changes when
market interest rates change. Generally, the longer a bond's or Fund's duration,
the more the price of the bond or Fund will change as interest rates change.
Leverage-adjusted duration takes into account the leveraging process for a Fund
and therefore is longer than the duration of the Fund's portfolio of bonds.
MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An investment's
current annualized dividend divided by its current market price.
NET ASSET VALUE (NAV): A Fund's common share NAV per share is calculated by
subtracting the liabilities of the Fund (including any 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.
90
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, 2006, 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.
CEO CERTIFICATION DISCLOSURE
For Funds listed on the New York Stock Exchange, each Fund's Chief Executive
Officer has submitted to the Exchange the annual CEO certification as required
by Section 303A.12(a) of the NYSE Listed Company Manual.
Each Fund has filed with the Securities and Exchange Commission the
certification of its Chief Executive Officer and Chief Financial Officer
required by Section 302 of the Sarbanes-Oxley Act.
BOARD OF 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
Carol E. Stone
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.
91
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 approximately $162 billion in assets as of December 31, 2006, 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 six distinct brands: NWQ, specializing in value-style
equities; Nuveen, managing fixed-income investments; Santa Barbara, committed to
growth equities; Tradewinds, specializing in global value equities; Rittenhouse,
focused on "blue-chip" growth equities; and Symphony, with expertise in
alternative investments as well as equity and income portfolios.
FIND OUT HOW WE CAN HELP YOU REACH YOUR FINANCIAL GOALS.
To learn more about the products and services Nuveen Investments offers, talk to
your financial advisor, or call us at (800) 257-8787. Please read the
information provided carefully before you invest.
Be sure to obtain a prospectus, where applicable. Investors should consider the
investment objective and policies, risk considerations, charges and expenses of
the Fund carefully before investing. The prospectus contains this and other
information relevant to an investment in the Fund. For a prospectus, please
contact your securities representative or Nuveen Investments, 333 W. Wacker Dr.,
Chicago, IL 60606. Please read the prospectus carefully before you invest or
send money.
o Share prices
Learn more o Fund details
about Nuveen Funds at o Daily financial news
WWW.NUVEEN.COM/CEF o Investor education
o Interactive planning tools
ESA-B-0207D
Logo: NUVEEN Investments
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.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrant's Board implemented after the registrant
last provided disclosure in response to this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")(17 CFR
240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter
of the period covered by this report that has materially affected, or
is reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable to
this filing.
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT
attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons: Not applicable.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR
270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference. Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen Insured California Tax-Free Advantage Municipal Fund
-----------------------------------------------------------
By (Signature and Title)* /s/ Jessica R. Droeger
-----------------------------------------------
Jessica R. Droeger
Vice President and Secretary
Date: May 4, 2007
--------------------------------------------------------------------
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 4, 2007
--------------------------------------------------------------------
By (Signature and Title)* /s/ Stephen D. Foy
-----------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: May 4, 2007
--------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.