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
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Nuveen Insured California Tax-Free Advantage Municipal Fund
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(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Address of principal executive offices) (Zip code)
Kevin J. McCarthy
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
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Date of fiscal year end: February 28
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Date of reporting period: August 31, 2009
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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.
LOGO: NUVEEN INVESTMENTS
Closed-End Funds
Nuveen Investments
Municipal Closed-End Funds
IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R)
Semi-Annual Report
August 31, 2009
------------------------- ------------------------- -------------------------
NUVEEN INSURED CALIFORNIA NUVEEN INSURED CALIFORNIA NUVEEN CALIFORNIA
PREMIUM INCOME MUNICIPAL PREMIUM INCOME MUNICIPAL PREMIUM INCOME
FUND, INC. FUND 2, INC. MUNICIPAL FUND
NPC NCL NCU
------------------------- ------------------------- -------------------------
NUVEEN CALIFORNIA NUVEEN CALIFORNIA NUVEEN CALIFORNIA
DIVIDEND ADVANTAGE DIVIDEND ADVANTAGE DIVIDEND ADVANTAGE
MUNICIPAL FUND MUNICIPAL FUND 2 MUNICIPAL FUND 3
NAC NVX NZH
------------------------- -------------------------
NUVEEN INSURED CALIFORNIA NUVEEN INSURED CALIFORNIA
DIVIDEND ADVANTAGE TAX-FREE ADVANTAGE
MUNICIPAL FUND MUNICIPAL FUND
NKL NKX
August 09
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LOGO: NUVEEN INVESTMENTS
Chairman's
Letter to Shareholders
[PHOTO OF ROBERT P. BREMNER]
DEAR SHAREHOLDER,
The financial markets in which your Fund operates continue to reflect the larger
economic crosscurrents. The illiquidity that infected global credit markets over
the last year appears to be slowly but steadily receding. The major institutions
that are the linchpin of the international financial system are strengthening
their capital structures, but many still struggle with losses in their various
portfolios. There are encouraging signs of recovery in European and Asian
economies, while the U.S. economy continues to feel the impact of job losses and
an over-borrowed consumer. Global trends include modestly increasing trade and
increased concern about the ability of the U.S. government to address its
substantial budgetary deficits. Identifying those developments that will define
the future is never easy, but rarely is it more difficult than at present.
After considerable volatility in the first few months of 2009, both the
fixed-income and equity markets have seen a partial recovery. A fundamental
component of a successful long-term investment program is a commitment to remain
invested during market downturns in order to be better positioned to benefit
from any recovery. Another component is to re-evaluate investment disciplines
and tactics and to confirm their validity following periods of extreme
volatility and market dislocation, such as we have recently experienced. Your
Board carried out an intensive review of investment performance with these
objectives in mind during April and May of this year as part of the annual
management contract renewal process. I encourage you to read the description of
this process in the Annual Investment Management Agreement Approval Process
section of this report.
Remaining invested through market downturns and reconfirming the appropriateness
of a long term investment strategy is as important for our shareholders as it is
for professional investment managers. For that reason, I again encourage you to
remain in communication with your financial consultant on these subjects. For
recent developments on all your Nuveen Funds, please visit the Nuveen web site:
www.nuveen.com.
Nuveen remains committed to resolving the issues connected with outstanding
auction rate preferred shares. In September 2009, Nuveen completed the
refinancing at par of all the outstanding auction rate preferred shares issued
by its taxable closed-end funds. For a variety of reasons, refinancing the
remaining outstanding preferred shares issued by the municipal closed-end funds
is taking longer but Nuveen is diligently pursuing a range of options to
accomplish this. Please consult the Nuveen web site for the most recent
information about the redemption of municipal auction rate preferred shares.
On behalf of the other members of your Fund's Board, we look forward to
continuing to earn your trust in the months and years ahead. Sincerely,
/s/ Robert P. Bremner
-----------------------------------
Robert P. Bremner
Chairman of the Board
October 20,2009
Nuveen Investments 1
Portfolio Manager's Comments
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)
Portfolio manager Scott Romans examines key investment strategies and the
six-month performance of the Nuveen California Municipal 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 AUGUST 31, 2009?
During this reporting period, municipal bond prices generally rose, as strong
cash flows into municipal bond funds combined with tighter new issue supply to
provide favorable supply and demand conditions.
Given the restricted supply during the period, investment activity in the
California Funds was more limited than usual. One reason for the supply
reduction was the introduction of the Build America Bonds program. Build America
Bonds are a new class of taxable municipal debt created as part of the February
2009 economic stimulus package. They provide municipal issuers with a federal
subsidy equal to 35% of the security's interest payments, and therefore offer
issuers an attractive alternative to traditional tax-exempt debt. As of August
31, 2009, approximately 20% of new bonds issued in the municipal market have
been issued as taxable Build America Bonds, which has reduced the supply of
traditional tax-exempt municipal bond issuance. For the insured Funds, this
situation was compounded by the severe decline in the issuance of AAA-rated
insured bonds. During the first eight months of 2009, new insured bonds
accounted for only 10.8% of national issuance, compared with 20.7% during the
first eight months of 2008 and historical levels of approximately 50%. While we
did see some new insured issuance during this period, none of it offered enough
compelling opportunities to warrant significant turnover and its potential
impact on earnings.
CERTAIN STATEMENTS IN THIS REPORT ARE FORWARD-LOOKING STATEMENTS. DISCUSSIONS OF
SPECIFIC INVESTMENTS ARE FOR ILLUSTRATION ONLY AND ARE NOT INTENDED AS
RECOMMENDATIONS OF INDIVIDUAL INVESTMENTS. THE FORWARD-LOOKING STATEMENTS AND
OTHER VIEWS EXPRESSED HEREIN ARE THOSE OF THE PORTFOLIO MANAGER AS OF THE DATE
OF THIS REPORT. ACTUAL FUTURE RESULTS OR OCCURRENCES MAY DIFFER SIGNIFICANTLY
FROM THOSE ANTICIPATED IN ANY FORWARD-LOOKING STATEMENTS AND THE VIEWS EXPRESSED
HEREIN ARE SUBJECT TO CHANGE AT ANY TIME, DUE TO NUMEROUS MARKET AND OTHER
FACTORS. THE FUNDS DISCLAIM ANY OBLIGATION TO UPDATE PUBLICLY OR REVISE ANY
FORWARD-LOOKING STATEMENTS OR VIEWS EXPRESSED HEREIN.
2 Nuveen Investments
When purchase opportunities did arise, we continued to focus on relative value,
as we took a bottom-up approach to discovering undervalued sectors and
individual credits with the potential to perform well over the long term. In
some cases, we were able to add lower-rated and non-rated credits that we
believed offered value at historically very attractive prices.
Cash for new purchases during this period was generated largely by bond calls.
During the spring of 2009, some of the Funds also sold positions in California
general obligation (GO) bonds prior to the credit problems experienced by the
state during the summer.
We continued to use inverse floating rate securities(1) in all of these Funds.
We employ inverse floaters for a variety of reasons, including duration(2)
management, income enhancement and as a form of financial leverage. As of August
31, 2009, the inverse floaters remained in place in all of these Funds.
HOW DID THE FUNDS PERFORM?
Individual results for the Nuveen California Funds, as well as relevant index
and peer group information, are presented in the accompanying table.
AVERAGE ANNUAL TOTAL RETURNS ON COMMON SHARE NET ASSET VALUE*
FOR PERIODS ENDED 8/31/09
SIX-MONTH 1-YEAR 5-YEAR 10-YEAR
------------------------------------------------------------------------------------------------
UNINSURED FUNDS
NCU 9.26% 1.69% 3.31% 5.74%
NAC 12.62% -0.27% 3.10% 6.34%
NVX 10.40% 2.23% 3.96% N/A
NZH 11.40% -2.57% 2.34% N/A
Standard & Poor's (S&P) CA Municipal Bond Index(3) 5.77% 3.47% 3.84% 5.19%
Lipper CA Municipal Debt Funds Average(4) 11.10% -2.15% 2.58% 5.14%
Standard & Poor's (S&P) National Municipal Bond Index(5) 6.49% 4.68% 4.00% 5.30%
Barclays Capital Municipal Bond Index(6) 5.61% 5.67% 4.16% 5.40%
INSURED FUNDS
NPC 5.70% 3.13% 3.59% 5.82%
NCL 9.15% 3.26% 3.31% 5.67%
NKL 8.46% 3.58% 4.12% N/A
NKX 9.10% 2.09% 3.96% N/A
Standard & Poor's (S&P) CA Municipal Bond Index(3) 5.77% 3.47% 3.84% 5.19%
Standard & Poor's (S&P) Insured National Municipal Bond 5.99% 4.97% 3.89% 5.53%
Index(5)
Barclays Capital Insured Municipal Bond Index(6) 5.01% 5.94% 4.12% 5.58%
Lipper Single-State Insured Municipal Debt Funds Average(7) 9.86% 2.91% 3.40% 5.76%
------------------------------------------------------------------------------------------------
For the six months ended August 31, 2009, the cumulative returns on common share
net asset value (NAV) for NCU, NAC, NVX and NZH exceeded the returns on the
Standard & Poor's (S&P) California Municipal Bond Index. NAC and NZH
outperformed the average return for the Lipper California Municipal Debt Funds
Average while NCU and NVX underperformed the Lipper average return. All of these
Funds outperformed the Standard & Poor's (S&P) National Municipal Bond Index for
the period.
*Six-month returns are cumulative; returns for one-year, five-year and ten-year
are annualized.
Past performance is not predictive of future results. Current performance may be
higher or lower than the data shown. Returns do not reflect the deduction of
taxes that shareholders may have to pay on Fund distributions or upon the sale
of Fund shares.
For additional information, see the individual Performance Overview for your
Fund in this report.
(1) An inverse floating rate security, also known as inverse floaters, is a
financial instrument designed to pay long-term tax-exempt interest at a
rate that varies inversely with a short-term tax-exempt interest rate
index. For the Nuveen Funds, the index typically used is the Securities
Industry and Financial Markets (SIFM) Municipal Swap Index (previously
referred to as the Bond Market Association Index or BMA). Inverse
floaters, including those inverse floating rate securities in which the
Funds invested during the reporting period, are further defined within the
Notes to Financial Statements and Glossary of Terms Used in this Report
sections of this report.
(2) 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.
(3) The Standard & Poor's (S&P) California Municipal Bond Index is an
unleveraged, market value-weighted index designed to measure the
performance of the investment-grade California municipal bond market. This
index does not reflect any initial or on going expenses and is not
available for direct investment.
(4) The Lipper California Municipal Debt Funds Average is calculated using the
returns of all closed-end funds in this category for each period as
follows: Six-months, 24 funds; 1-year, 24 funds; 5-year, 24 funds; and
10-year, 12 funds. Fund and Lipper returns assume reinvestment of
dividends.
(5) The Standard & Poor's (S&P) National Municipal Bond Index is an
unleveraged, market value-weighted index designed to measure the
performance of the investment-grade U.S. municipal bond market, while the
Standard & Poor's (S&P) Insured National Municipal Bond Index is an
unleveraged, market value-weighted index designed to measure the
performance of the insured segment of the U.S. municipal bond market. The
indexes do not reflect any initial or on going expenses and are not
available for direct investment.
(6) The Barclays Capital (formerly Lehman Brothers) Municipal Bond Index is an
unleveraged, unmanaged national index comprising a broad range of
investment-grade municipal bonds, while the Barclays Capital (formerly
Lehman Brothers) Insured Municipal Bond Index is an unleveraged, unmanaged
national index containing a broad range of insured municipal bonds.
Results for the Barclays Capital indexes do not reflect any expenses and
are not available for direct investment.
(7) The Lipper Single-State Insured Municipal Debt Funds Average is calculated
using the returns of all closed-end funds in this category for each period
as follows: Six-months, 44 funds; 1-year, 44 funds; 5-year, 44 funds; and
10-year, 24 funds. Fund and Lipper returns assume reinvestment of
dividends.
Nuveen Investments 3
For the insured Funds during the same period, the cumulative returns on common
share NAV for NCL, NKL and NKX exceeded the returns on the Standard & Poor's
(S&P) California Municipal Bond Index. NPC performed in line with the Standard &
Poor's (S&P) California Municipal Bond Index. The four insured Funds
underperformed the average return on the Lipper Single-State Insured Municipal
Debt Funds Average. All of the Funds except NPC outperformed the Standard &
Poor's (S&P) Insured National Municipal Bond Index for the period.
Key management factors that influenced the Funds' returns during this period
included duration and yield curve positioning, credit exposure and sector
allocations. In addition, leverage was an important factor affecting the Funds'
performances over this period. The impact of leverage is discussed in more
detail on page 5.
As previously noted, municipal bonds generally performed well over this period.
Bonds in the Barclays Capital Municipal Bond Index with maturities longer than
15 years, especially those with the longest maturities (22 years or more),
benefited the most from this environment. These bonds generally outperformed
credits with shorter maturities, with bonds maturing in one to two years posting
the weakest returns for the period. Among the uninsured Funds, NAC was the best
positioned for this environment in terms of duration and yield curve
positioning, while NCU had more exposure to the underper-forming shorter end of
the yield curve, which hurt its performance. Similarly, among the insured Funds,
NCL was more advantageously positioned, especially relative to NPC, which was
negatively impacted by its lower weightings in the longer parts of the curve
that performed well.
The increase in demand for municipal bonds, among both institutional and
individual investors, especially for lower-rated credits, was driven by a
variety of factors. These included concerns about possible tax increases, the
need to rebalance portfolio allocations, and a growing appetite to assume
additional risk. At the same time, the supply of new municipal paper declined
and bonds rated BBB or below and non-rated bonds generally outperformed those
rated AAA. All of the uninsured Funds were helped by their weightings in the
lower-rated credit categories, although the positive contribution from these
bonds was smaller in NCU, which had less exposure to these categories. NKL and
NKX also benefited from their holdings of uninsured BBB and non-rated bonds. In
addition, individual security selection in the high-grade, longer maturity
categories boosted the performance of NAC, as its selection of longer AAA, AA,
and A rated bonds outperformed similar categories in the other California Funds.
Holdings that generally contributed to the Funds' performances included
industrial development revenue (IDR), health care and zero coupon bonds, all of
which outperformed the general municipal market during this period. Bonds backed
by the 1998 master tobacco settlement agreement also posted strong returns. As
of August 31, 2009, holdings of lower-rated tobacco bonds ranged from
approximately 3% to 5% of total net assets, providing a meaningful contribution
to performance. (NPC and NCL do not hold any uninsured tobacco bonds.)
4 Nuveen Investments
Pre-refunded(8) bonds, which often are backed by U.S. Treasury securities and
which, were one of the top performing segments of the municipal bond market over
the past two years, performed especially poorly during this period. This was due
primarily to their shorter effective maturities and higher credit quality.
Additional market segments that lagged the overall municipal market included
resource recovery, water and sewer and GO credits. Although long-dated
California GOs underperformed other bonds with the same effective duration, all
of these Funds were significantly underweighted in California GOs relative to
the California market in general, which helped their absolute and relative
performances. As of August 31, 2009, California GOs were rated Baa1/A/BBB by
Moody's, S&P and Fitch, respectively. These credit ratings, which were the
lowest of any state, reflected two downgrades by Moody's and three downgrades by
Fitch during this six-month period, most recently in July 2009. On the positive
side, S&P, which had lowered its rating on California GOs in February 2009,
reaffirmed its rating of A in August 2009 and removed the state from its
negative credit watch list.
IMPACT OF THE FUNDS' CAPITAL STRUCTURES AND LEVERAGE STRATEGIES ON PERFORMANCE
One important factor impacting the returns of these Funds relative to the
comparative indexes was the Funds' use of financial leverage. The Funds use
leverage because their managers believe that, over time, leveraging provides
opportunities for additional income and total returns for common shareholders.
However, use of leverage also can expose common shareholders to additional
risk--especially when market conditions are unfavorable. For example, as the
prices of securities held by a Fund declines, the negative impact of these
valuation changes on common share net asset value and common shareholder total
return is magnified by the use of leverage. Conversely, leverage may enhance
common share returns during periods when bond prices generally are rising.
During this six-month period, leverage had a positive impact on the total return
performance of the Funds that employed this strategy.
RECENT DEVELOPMENTS REGARDING BOND INSURANCE COMPANIES
Another factor that had an impact on the performance of these Funds was their
positions in bonds backed by municipal bond insurers that experienced downgrades
in their credit ratings. During the period covered by this report, all bond
insurers experienced one or more rating reductions by at least one or more
rating agencies. At the time this report was prepared, there are no longer any
bond insurers rated AAA by more than one of the major rating agencies (Moody's
Investor Service, S&P and Fitch) and at least one rating agency has placed each
insurer on "negative credit watch," "credit outlook/watch developing" "credit
outlook/watch negative," "credit watch evolving," "rating withdrawn" or
"regulatory supervision" which may presage one or more rating reductions for any
insurer in the future. As concern increased about the balance sheets of
insurers, prices on insured bonds - especially those bonds issued by weaker
underlying credits - declined, detracting from the Funds' performances. By the
end of this period, most insured bonds were being valued according to their
fundamentals as if they were uninsured. On the whole, the holdings of all of
these Funds continued to be well diversified and it is important to note that
municipal bonds historically have had a very low rate of default.
(8) Pre-refundings, also known as advance 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.
Nuveen Investments 5
RECENT DEVELOPMENTS REGARDING THE FUND'S LEVERAGED CAPITAL STRUCTURE
As noted in the last several shareholder reports, the auction rate preferred
shares issued by many closed-end funds, including these Nuveen Funds, have been
hampered by a lack of liquidity since February 2008. Since that time, more
auction rate preferred shares have been submitted for sale in their regularly
scheduled auctions than there have been offers to buy. In fact, offers to buy
have been almost completely non-existent since late February, 2008. This means
that these auctions have "failed to clear," and that many, or all, of the
auction rate preferred shareholders who wanted to sell their shares in these
auctions were unable to do so. This lack of liquidity in auction rate preferred
shares did not lower the credit quality of these shares, and auction rate
preferred shareholders unable to sell their shares received distributions at the
"maximum rate" applicable to failed auctions, as calculated in accordance with
the pre-established terms of the auction rate preferred shares. In the recent
market, with short-term rates at multi-generational lows, those maximum rates
also have been low.
One continuing implication for common shareholders from the auction failures is
that each Fund's cost of leverage likely has been incrementally higher at times
than it otherwise might have been had the auctions continued to be successful.
As a result, each Fund's common share earnings likely have been incrementally
lower at times than they otherwise might have been.
As noted in past shareholder reports, the Funds' Board of Directors/Trustees
authorized a plan to use tender option bonds (TOBs), also known as floating rate
securities, to refinance a portion of the Funds' outstanding auction rate
preferred shares. The amount of TOBs that a Fund may use varies according to the
composition of each Fund's portfolio. Some Funds have a greater ability to use
TOBs than others. As of August 31, 2009, the amounts of auction rate preferred
securities redeemed, at par, by each of the Funds are as shown in the
accompanying table.
AUCTION RATE % OF ORIGINAL
PREFERRED SHARES AUCTION RATE
FUND REDEEMED PREFERRED SHARES
--------------------------------------------------------------------------------
NPC - -
NCL $15,175,000 15.97%
NCU $ 4,125,000 9.59%
NAC $39,475,000 22.56%
NVX $11,725,000 10.66%
NZH $32,925,000 17.61%
NKL $ 9,750,000 8.26%
NKX $45,000,000 100.00%
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6 Nuveen Investments
As noted in past shareholder reports, NKX's redemptions were achieved through
the issuance of variable rate demand preferred shares (VRDP) in conjunction with
the proceeds from the creation of TOBs. VRDP is a newly-developed instrument
that essentially replaced the auction rate preferred shares used as leverage in
NKX, and potentially, could be used to refinance the auction rate preferred
shares of other Funds. The holder of VRDP has a right to put the shares to an
external liquidity provider, whose fees are paid by the Fund and its common
shareholders. VRDP is offered only to qualified institutional buyers, defined
pursuant to Rule 144A under the Securities Act of 1933. As of August 31, 2009,
NKX had issued $35.5 million of VRDP.
Subsequent to the end of this reporting period, the following Funds noticed for
redemption, at par, additional auction rate preferred securities as shown in the
accompanying table.
AUCTION RATE
PREFERRED SHARES
FUND REDEEMED
--------------------------------------------------------------------------------
NCU $4,500,000
NVX $4,500,000
--------------------------------------------------------------------------------
The Funds, their Board of Directors/Trustees and Fund Management continue to
work to resolve this situation. Several Funds have attempted to issue VRDP, but
it has been difficult to find liquidity facilities on economically viable terms
given the constrained credit environment. The Funds also have tried to develop
other forms of preferred stock that have longer terms and do not require a Fund
to obtain and pay for the services of an external liquidity provider. However,
the Funds cannot provide any assurance on when the remaining outstanding auction
rate preferred shares might be redeemed.
As of August 31, 2009, 78 Nuveen closed-end municipal funds have redeemed, at
par, a portion of their outstanding auction rate preferred shares. These
redemptions bring the total amount of Nuveen's municipal closed-end funds'
auction rate preferred share redemptions to approximately $2.3 billion of the
original $11 billion outstanding.
For up-to-date information, please visit the Nuveen CEF Auction Rate Preferred
Resource Center at: http://www.nuveen.com/ResourceCenter/AuctionRatePreferred.
aspx.
Nuveen Investments 7
Common Share Dividend and Share Price Information
During the six-month reporting period ended August 31, 2009, each of these eight
California Funds had one monthly dividend increase.
All of the Funds in this report seek to pay stable dividends at rates that
reflect each Fund's past results and projected future performance. During
certain periods, each Fund may pay dividends at a rate that may be more or less
than the amount of net investment income actually earned by the Fund during the
period. If a Fund has cumulatively earned more than it has paid in dividends, it
holds the excess in reserve as undistributed net investment income (UNII) as
part of the Fund's NAV. Conversely, if a Fund has cumulatively paid dividends in
excess of its earnings, the excess constitutes negative UNII that is likewise
reflected in the Fund's NAV. Each Fund will, over time, pay all of its net
investment income as dividends to shareholders. As of August 31, 2009, all of
the Funds in this report had positive UNII balances for tax purposes, based upon
our best estimate, and positive UNII balances for financial statement purposes.
COMMON SHARE REPURCHASES AND SHARE PRICE INFORMATION
As of August 31, 2009, the following Funds cumulatively repurchased common
shares as shown in the accompanying table. Since the inception of the Funds
repurchase program, NAC and NKX have not repurchased any of their outstanding
common shares.
COMMON SHARES % OF OUTSTANDING
FUND REPURCHASED COMMON SHARES
--------------------------------------------------------------------------------
NPC 13,300 0.2%
NCL 53,500 0.4%
NCU 37,900 0.7%
NVX 50,700 0.3%
NZH 12,900 0.1%
NKL 32,700 0.2%
--------------------------------------------------------------------------------
8 Nuveen Investments
During the six-month reporting period, the following Funds repurchased common
shares at a weighted average price and a weighted average discount per common
share as shown in the accompanying table.
WEIGHTED AVERAGE WEIGHTED AVERAGE
COMMON SHARES PRICE PER SHARE DISCOUNT PER SHARE
FUND REPURCHASED REPURCHASED REPURCHASED
--------------------------------------------------------------------------------
NPC 7,100 $11.25 18.75%
NCL 11,700 $10.43 18.03%
NCU 23,200 $ 9.75 20.39%
NVX 32,400 $10.28 19.87%
NKL 13,700 $11.04 18.04%
--------------------------------------------------------------------------------
As of August 31, 2009, the Funds' common share prices were trading at discounts
to their common share NAVs as shown in the accompanying table.
8/31/09 SIX-MONTH AVERAGE
FUND (-)DISCOUNT (-)DISCOUNT
--------------------------------------------------------------------------------
NPC -9.62% -13.98%
NCL -7.48% -10.86%
NCU -8.27% -15.63%
NAC -7.34% -11.60%
NVX -7.74% -13.01%
NZH -1.77% -7.92%
NKL -7.65% -12.18%
NKX -6.46% -9.27%
--------------------------------------------------------------------------------
Nuveen Investments 9
NPC Performance OVERVIEW | Nuveen Insured California Premium Income Municipal
Fund, Inc. as of August 31, 2009
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 13.06
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 14.45
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -9.62%
--------------------------------------------------------------------------------
Market Yield 5.65%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(3) 8.68%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 93,168
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 14.65
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 10.04
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/19/92)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month (Cumulative) 11.73% 5.70%
--------------------------------------------------------------------------------
1-Year 1.41% 3.13%
--------------------------------------------------------------------------------
5-Year 2.42% 3.59%
--------------------------------------------------------------------------------
10-Year 4.62% 5.82%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 30.0%
--------------------------------------------------------------------------------
Tax Obligation/Limited 25.9%
--------------------------------------------------------------------------------
Tax Obligation/General 23.4%
--------------------------------------------------------------------------------
Water and Sewer 11.0%
--------------------------------------------------------------------------------
Other 9.7%
--------------------------------------------------------------------------------
INSURERS
(as a % of total Insured investments)
--------------------------------------------------------------------------------
NPFG(5) 36.1%
--------------------------------------------------------------------------------
AMBAC 21.6%
--------------------------------------------------------------------------------
FSA 21.1%
--------------------------------------------------------------------------------
FGIC 15.6%
--------------------------------------------------------------------------------
AGC 3.0%
--------------------------------------------------------------------------------
Other 2.6%
--------------------------------------------------------------------------------
CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS)(1,2)
[PIE CHART]
Insured 70%
U.S. Guaranteed* 30%
* U.S. Guaranteed includes 10.5% (as a % of total investments) of Insured
securities.
2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE(4)
[BAR CHART]
Sep $0.0605
Oct 0.0605
Nov 0.0605
Dec 0.0605
Jan 0.0605
Feb 0.0605
Mar 0.0605
Apr 0.0605
May 0.0615
Jun 0.0615
Jul 0.0615
Aug 0.0615
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE CHART]
9/02/08 $ 13.91
13.89
13.64
13.16
12.02
11.83
8.3
10.46
11.14
11.57
12.1
11.3892
10
10.44
9.99
8.7332
10.04
10.47
10.84
12.45
11.69
11.924
12.37
12.6704
12.46
12.1
12.04
11.28
11.25
11.29
11.8
11.83
11.74
11.83
12.12
12.35
12.51
12.3799
12.32
12.36
12.25
11.86
12.18
11.79
11.86
12.04
12.15
12.62
12.75
12.9417
12.88
12.96
12.98
8/31/09 13.06
(1) Primarily all of the Fund's net assets are invested in municipal
securities that guarantee the timely payment of principal and interest.
See Notes to Financial Statements, Footnote 1 - Insurance, for more
information.
(2) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds whose insurer has experienced downgrades as of the end of
the reporting period. Please see the Portfolio Manager's Comments for an
expanded discussion of the affect on the Fund of changes to the ratings of
certain bonds in the portfolio resulting from changes to the ratings of
the underlying insurers both during the period and after period end.
(3) 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 34.9%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(4) The Fund paid shareholders capital gains and net ordinary income
distributions in December 2008 of $0.1447 per share.
(5) MBIA's public finance subsidiary.
10 Nuveen Investments
NCL Performance OVERVIEW | Nuveen Insured California Premium Income Municipal
Fund 2, Inc. as of August 31, 2009
CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS)(1,2)
[PIE CHART]
Insured 87%
U.S. Guaranteed* 13%
* U.S. Guaranteed includes 10.7% (as a % of total investments) of Insured
securities.
2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE(4)
[BAR CHART]
Sep $0.056
Oct 0.056
Nov 0.056
Dec 0.056
Jan 0.056
Feb 0.056
Mar 0.058
Apr 0.058
May 0.065
Jun 0.065
Jul 0.065
Aug 0.065
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE CHART]
9/02/08 $12.63
12.87
12.7
11.74
11.06
10.8
7.77
9.52
10.68
10.3
12.3614
11.41
10.51
9.89
9.15
7.8
9.07
9.05
9.97
11.25
10.667
10.28
10.7
10.79
11.2
10.29
10.89
10.36
10.53
10.72
10.81
11.02
11.22
11.15
11.67
11.95
12.03
11.89
11.98
12.08
12.22
11.95
11.66
11.3
11.29
11.43
11.68
12
12.27
12.34
12.32
12.53
12.6
8/31/09 12.61
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 12.61
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 13.63
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -7.48%
--------------------------------------------------------------------------------
Market Yield 6.19%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(3) 9.51%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 172,637
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 17.38
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 12.71
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/18/93)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month (Cumulative) 19.50% 9.15%
--------------------------------------------------------------------------------
1-Year 7.62% 3.26%
--------------------------------------------------------------------------------
5-Year 1.98% 3.31%
--------------------------------------------------------------------------------
10-Year 4.57% 5.67%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/Limited 39.6%
--------------------------------------------------------------------------------
Tax Obligation/General 16.4%
--------------------------------------------------------------------------------
Water and Sewer 15.0%
--------------------------------------------------------------------------------
U.S. Guaranteed 13.0%
--------------------------------------------------------------------------------
Utilities 5.3%
--------------------------------------------------------------------------------
Other 10.7%
--------------------------------------------------------------------------------
INSURERS
(as a % of total Insured investments)
--------------------------------------------------------------------------------
FGIC 28.8%
--------------------------------------------------------------------------------
AMBAC 27.5%
--------------------------------------------------------------------------------
NPFG(5) 21.7%
--------------------------------------------------------------------------------
FSA 19.0%
--------------------------------------------------------------------------------
Other 3.0%
--------------------------------------------------------------------------------
(1) Primarily all of the Fund's net assets are invested in municipal
securities that guarantee the timely payment of principal and interest.
See Notes to Financial Statements, Footnote 1 - Insurance, for more
information.
(2) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds whose insurer has experienced downgrades as of the end of
the reporting period. Please see the Portfolio Manager's Comments for an
expanded discussion of the affect on the Fund of changes to the ratings of
certain bonds in the portfolio resulting from changes to the ratings of
the underlying insurers both during the period and after period end.
(3) 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 34.9%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(4) The Fund paid shareholders capital gains and net ordinary income
distributions in December 2008 of $0.1431 per share.
(5) MBIA's public finance subsidiary.
Nuveen Investments 11
NCU Performance OVERVIEW | Nuveen California Premium Income Municipal Fund as of
August 31, 2009
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 12.09
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 13.18
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -8.27%
--------------------------------------------------------------------------------
Market Yield 5.66%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 8.69%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 75,631
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 16.97
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 12.14
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 6/18/93)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month (Cumulative) 23.95% 9.26%
--------------------------------------------------------------------------------
1-Year 2.60% 1.69%
--------------------------------------------------------------------------------
5-Year 3.26% 3.31%
--------------------------------------------------------------------------------
10-Year 5.02% 5.74%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/Limited 31.0%
--------------------------------------------------------------------------------
Health Care 17.7%
--------------------------------------------------------------------------------
Tax Obligation/General 17.0%
--------------------------------------------------------------------------------
U.S. Guaranteed 10.5%
--------------------------------------------------------------------------------
Utilities 5.3%
--------------------------------------------------------------------------------
Water and Sewer 4.6%
--------------------------------------------------------------------------------
Other 13.9%
--------------------------------------------------------------------------------
CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS)(1)
[PIE CHART]
AAA/U.S. Guaranteed 25%
AA 30%
A 31%
BBB 11%
BB or Lower 2%
N/R 1%
2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE(3)
[BAR CHART]
Sep $0.0555
Oct 0.0555
Nov 0.0555
Dec 0.0555
Jan 0.0555
Feb 0.0555
Mar 0.0555
Apr 0.0555
May 0.057
Jun 0.057
Jul 0.057
Aug 0.057
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE CHART]
9/02/08 $ 12.58
12.76
12.44
11.72
10.76
10.55
7.69
8.859
10.25
9.95
10.62
9.84
8.58
8.85
8.34
7.76
8.55
8.6
9.22
10.51
10.06
10
10.22
10.3
10.41
9.52
10.06
9.52
9.68
9.79
9.85
9.91
10
10.12
10.48
10.77
10.95
10.85
10.82
10.93
10.92
10.76
10.7
10.53
10.64
10.73
10.8
11.07
11.492
11.53
11.58
11.84
12.03
8/31/09 12.09
(1) Excluding short-term investments.
(2) 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 34.9%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(3) The Fund paid shareholders a capital gains distribution in December 2008
of $0.0061 per share.
12 Nuveen Investments
NAC Performance OVERVIEW | Nuveen California Dividend Advantage Municipal Fund
as of August 31, 2009
CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS)(1)
[PIE CHART]
AAA/U.S. Guaranteed 33%
AA 15%
A 33%
BBB 10%
BB or Lower 1%
N/R 8%
2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE(3)
[BAR CHART]
Sep $ 0.063
Oct 0.063
Nov 0.063
Dec 0.063
Jan 0.063
Feb 0.063
Mar 0.063
Apr 0.063
May 0.0665
Jun 0.0665
Jul 0.0665
Aug 0.0665
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE CHART]
9/02/08 $ 13.31
13.46
13.63
12.79
11.98
11.1
8.15
9.6
10.9
11.01
11.21
10.25
8.76
9.73
9.1
7.57
9.27
9
10.17
11.3
10.55
10.4
10.51
10.69
11.15
9.92
10.82
9.7
9.805
10.3
10.13
10.55
10.46
10.64
10.99
11.3
11.42
11.33
11.4
11.62
11.33
10.83
10.935
10.9
10.92
11.1
11.2
11.45
11.7
11.83
11.99
12.15
12.16
8/31/09 12.24
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 12.24
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 13.21
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -7.34%
--------------------------------------------------------------------------------
Market Yield 6.52%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 10.02%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 310,213
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 18.03
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 12.53
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 5/26/99)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month (Cumulative) 17.10% 12.62%
--------------------------------------------------------------------------------
1-Year 0.55% -0.27%
--------------------------------------------------------------------------------
5-Year 2.71% 3.10%
--------------------------------------------------------------------------------
10-Year 4.59% 6.34%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/Limited 23.7%
--------------------------------------------------------------------------------
U.S. Guaranteed 18.4%
--------------------------------------------------------------------------------
Health Care 17.4%
--------------------------------------------------------------------------------
Transportation 13.6%
--------------------------------------------------------------------------------
Tax Obligation/General 6.1%
--------------------------------------------------------------------------------
Education and Civic Organizations 4.8%
--------------------------------------------------------------------------------
Water and Sewer 4.4%
--------------------------------------------------------------------------------
Other 11.6%
--------------------------------------------------------------------------------
(1) Excluding short-term investments.
(2) 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 34.9%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(3) The Fund paid shareholders capital gains and net ordinary income
distributions in December 2008 of $0.2634 per share.
Nuveen Investments 13
NVX Performance OVERVIEW | Nuveen California Dividend Advantage Municipal Fund 2
as of August 31, 2009
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 12.75
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 13.82
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -7.74%
--------------------------------------------------------------------------------
Market Yield 6.54%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 10.05%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 203,836
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 15.20
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 11.40
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/27/01)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month (Cumulative) 25.61% 10.40%
--------------------------------------------------------------------------------
1-Year 8.24% 2.23%
--------------------------------------------------------------------------------
5-Year 4.02% 3.96%
--------------------------------------------------------------------------------
Since Inception 4.18% 5.37%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 28.0%
--------------------------------------------------------------------------------
Tax Obligation/Limited 15.2%
--------------------------------------------------------------------------------
Health Care 12.5%
--------------------------------------------------------------------------------
Transportation 7.5%
--------------------------------------------------------------------------------
Water and Sewer 7.3%
--------------------------------------------------------------------------------
Tax Obligation/General 6.8%
--------------------------------------------------------------------------------
Education and Civic Organizations 5.8%
--------------------------------------------------------------------------------
Utilities 5.4%
--------------------------------------------------------------------------------
Other 11.5%
--------------------------------------------------------------------------------
CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS)
[PIE CHART]
AAA/U.S. Guaranteed 36%
AA 18%
A 26%
BBB 11%
BB or Lower 2%
N/R 7%
2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE(2)
[BAR CHART]
Sep $0.0605
Oct 0.0605
Nov 0.0605
Dec 0.0605
Jan 0.0605
Feb 0.0605
Mar 0.066
Apr 0.066
May 0.0695
Jun 0.0695
Jul 0.0695
Aug 0.0695
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE CHART]
9/02/08 $ 12.72
12.89
12.78
12.4
11.34
10.89
7.63
9.37
10.65
10.63
10.86
10.28
9
9.91
8.93
8.35
9.54
9.38
9.9
11.2301
10.45
10.5
10.91
10.8
10.99
9.96
10.51
10.2
10.37
10.55
10.72
11
10.92
10.98
11.2
11.48
12
11.88
11.8
12.05
11.69
11.51
11.44
11.33
11.42
11.5
11.81
11.9
12.26
12.33
12.4
12.5863
12.65
8/31/09 12.75
(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 34.9%. 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 2008 of $0.035 per share.
14 Nuveen Investments
NZH Performance OVERVIEW | Nuveen California Dividend Advantage Municipal Fund 3
as of August 31, 2009
CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS)(1)
[PIE CHART]
AAA/U.S. Guaranteed 31%
AA 17%
A 30%
BBB 14%
BB or Lower 1%
N/R 7%
2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE
[BAR CHART]
Sep $0.0615
Oct 0.0615
Nov 0.0615
Dec 0.0615
Jan 0.0615
Feb 0.0615
Mar 0.064
Apr 0.064
May 0.0675
Jun 0.0675
Jul 0.0675
Aug 0.0675
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE CHART]
9/02/08 $ 12.76
13.05
12.86
12.35
11.6
10.78
7.75
9
10.4
10.5
10.9
9.84
8.62
9.8
8.13
7.38
8.85
8.63
9.44
10.44
9.69
9.65
10.355
10.48
10.72
9.45
10.23
9.6
10.01
9.86
10.18
10.23
10.2
10.22
10.7099
10.89
11.38
11.12
11.34
11.37
11.27
10.72
10.77
10.461
10.53
10.65
10.95
11.09
11.35
11.45
11.75
12.14
12.13
8/31/09 12.2
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 12.20
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 12.42
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -1.77%
--------------------------------------------------------------------------------
Market Yield 6.64%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 10.20%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 299,575
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 16.86
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 13.54
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 9/25/01)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month (Cumulative) 23.62% 11.40%
--------------------------------------------------------------------------------
1-Year 1.88% -2.57%
--------------------------------------------------------------------------------
5-Year 4.27% 2.34%
--------------------------------------------------------------------------------
Since Inception 3.49% 3.98%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/Limited 26.0%
--------------------------------------------------------------------------------
Health Care 18.1%
--------------------------------------------------------------------------------
U.S. Guaranteed 16.0%
--------------------------------------------------------------------------------
Tax Obligation/General 12.1%
--------------------------------------------------------------------------------
Water and Sewer 5.9%
--------------------------------------------------------------------------------
Consumer Staples 4.9%
--------------------------------------------------------------------------------
Transportation 4.6%
--------------------------------------------------------------------------------
Other 12.4%
--------------------------------------------------------------------------------
(1) Excluding short-term investments.
(2) 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 34.9%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
Nuveen Investments 15
NKL Performance OVERVIEW | Nuveen Insured California Dividend Advantage
Municipal Fund as of August 31, 2009
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 13.15
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 14.24
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -7.65%
--------------------------------------------------------------------------------
Market Yield 6.34%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(3) 9.74%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 217,150
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 16.43
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 10.00
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/25/02)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month (Cumulative) 21.74% 8.46%
--------------------------------------------------------------------------------
1-Year 4.43% 3.58%
--------------------------------------------------------------------------------
5-Year 3.74% 4.12%
--------------------------------------------------------------------------------
Since Inception 4.37% 5.84%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/Limited 32.1%
--------------------------------------------------------------------------------
Tax Obligation/General 18.2%
--------------------------------------------------------------------------------
U.S. Guaranteed 14.3%
--------------------------------------------------------------------------------
Utilities 9.9%
--------------------------------------------------------------------------------
Water and Sewer 9.7%
--------------------------------------------------------------------------------
Health Care 4.3%
--------------------------------------------------------------------------------
Other 11.5%
--------------------------------------------------------------------------------
INSURERS
(as a % of total Insured investments)
--------------------------------------------------------------------------------
AMBAC 27.4%
--------------------------------------------------------------------------------
FSA 25.3%
--------------------------------------------------------------------------------
NFPG(5) 24.0%
--------------------------------------------------------------------------------
FGIC 15.3%
--------------------------------------------------------------------------------
SYNCORA 4.8%
--------------------------------------------------------------------------------
Other 3.2%
--------------------------------------------------------------------------------
CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS)(1,2)
[PIE CHART]
Insured 74%
U.S. Guaranteed* 14%
GNMA/FNMA Guaranteed 1%
A (Uninsured) 5%
BBB (Uninsured) 6%
* U.S. Guaranteed includes 9.4% (as a % of total investments) of Insured
securities.
2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE(4)
[BAR CHART]
Sep $ 0.062
Oct 0.062
Nov 0.062
Dec 0.062
Jan 0.062
Feb 0.062
Mar 0.0635
Apr 0.0635
May 0.0695
Jun 0.0695
Jul 0.0695
Aug 0.0695
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE CHART]
9/02/08 $13.5099
13.65
13.71
13.6
12.3
11.52
8.28
10.039
11.16
11.84
12
11.26
9.9999
10.16
9.9
8.65
9.66
10.25
10.91
11.8
11.35
11.35
11.5056
11.83
11.7
10.61
11.16
10.95
10.95
11.15
11.38
11.54
11.25
11.48
11.9
11.98
12.48
12.46
12.51
12.6
12.1
11.55
11.81
11.78
11.884
11.88
12.14
12.44
12.89
12.8
13.05
13.13
13.145
8/31/09 13.15
(1) At least 80% of the Fund's net assets are invested in municipal securities
that guarantee the timely payment of principal and interest. See Notes to
Financial Statements, Footnote 1 - Insurance, for more information.
(2) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds whose insurer has experienced downgrades as of the end of
the reporting period. Please see the Portfolio Manager's Comments for an
expanded discussion of the affect on the Fund of changes to the ratings of
certain bonds in the portfolio resulting from changes to the ratings of
the underlying insurers both during the period and after period end.
(3) 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 34.9%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(4) The Fund paid shareholders capital gains and net ordinary income
distributions in December 2008 of $0.0372 per share.
(5) MBIA's public finance subsidiary.
16 Nuveen Investments
NKX Performance OVERVIEW | Nuveen Insured California Tax-Free Advantage
Municipal Fund as of August 31, 2009
CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS)(1,2,3)
[PIE CHART]
Insured 72%
U.S. Guaranteed* 14%
AA (Uninsured) 7%
A (Uninsured) 1%
BBB (Uninsured) 6%
* U.S. Guaranteed includes 10.6% (as a % of long-term investments) of Insured
securities.
2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE(5)
[BAR CHART]
Sep $ 0.059
Oct 0.059
Nov 0.059
Dec 0.059
Jan 0.059
Feb 0.059
Mar 0.059
Apr 0.059
May 0.063
Jun 0.063
Jul 0.063
Aug 0.063
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE CHART]
9/02/08 $ 13.7
13.93
13.62
13.15
11.73
11.8
8.136
9.835
10.9
11.8511
12.3
10.6
9.83
10.32
9.3
8.6
9.47
10.35
10.67
12.14
11.58
10.97
11.26
11.41
11.76
11.65
11.75
10.75
10.99
10.96
11.488
11.6899
11.3
11.5
12.04
12.4
12.26
11.86
12.19
12.45
11.97
11.48
11.73
11.47
11.8
11.78
11.9
12.04
12.3
12.34
12.33
12.6461
12.7499
8/31/09 12.75
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 12.75
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 13.63
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -6.46%
--------------------------------------------------------------------------------
Market Yield 5.93%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(4) 9.11%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 80,226
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 17.15
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 12.10
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/21/02)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month (Cumulative) 11.87% 9.10%
--------------------------------------------------------------------------------
1-Year -1.06% 2.09%
--------------------------------------------------------------------------------
5-Year 3.43% 3.96%
--------------------------------------------------------------------------------
Since Inception 3.27% 4.81%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/Limited 31.3%
--------------------------------------------------------------------------------
Tax Obligation/General 15.6%
--------------------------------------------------------------------------------
Health Care 14.6%
--------------------------------------------------------------------------------
U.S. Guaranteed 13.7%
--------------------------------------------------------------------------------
Water and Sewer 9.5%
--------------------------------------------------------------------------------
Transportation 7.0%
--------------------------------------------------------------------------------
Other 8.3%
--------------------------------------------------------------------------------
INSURERS
(as a % of total Insured investments)
--------------------------------------------------------------------------------
AMBAC 47.6%
--------------------------------------------------------------------------------
NPFG(6) 22.3%
--------------------------------------------------------------------------------
FSA 9.0%
--------------------------------------------------------------------------------
AGC 7.9%
--------------------------------------------------------------------------------
BHAC 6.2%
--------------------------------------------------------------------------------
FGIC 5.5%
--------------------------------------------------------------------------------
Other 1.5%
--------------------------------------------------------------------------------
(1) Excluding short-term investments.
(2) At least 80% of the Fund's net assets are invested in municipal securities
that guarantee the timely payment of principal and interest. See Notes to
Financial Statements, Footnote 1 - Insurance, for more information.
(3) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds whose insurer has experienced downgrades as of the end of
the reporting period. Please see the Portfolio Manager's Comments for an
expanded discussion of the affect on the Fund of changes to the ratings of
certain bonds in the portfolio resulting from changes to the ratings of
the underlying insurers both during the period and after period end.
(4) 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 34.9%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(5) The Fund paid shareholders a capital gains distribution in December 2008
of $0.0516 per share.
(6) MBIA's public finance subsidiary.
Nuveen Investments 17
NPC | Nuveen Insured California Premium Income Municipal Fund, Inc.
| Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 5.1% (3.6% OF TOTAL
INVESTMENTS)
$ 1,250 California Educational Facilities Authority, Student Loan 9/09 at 101.00 Baa1 $ 1,231,613
Revenue Bonds, Cal Loan Program, Series 2001A, 5.400%,
3/01/21 - NPFG Insured (Alternative Minimum Tax)
1,500 California State University, Systemwide Revenue Bonds, Series 5/15 at 100.00 Aa3 1,527,285
2005A, 5.000%, 11/01/25 - AMBAC Insured
2,000 California State University, Systemwide Revenue Bonds, Series 11/15 at 100.00 Aa3 2,023,140
2005C, 5.000%, 11/01/27 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
4,750 Total Education and Civic Organizations 4,782,038
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 5.6% (3.9% OF TOTAL INVESTMENTS)
3,000 California Health Facilities Financing Authority, Insured 2/10 at 100.50 Aa3 2,946,270
Revenue Bonds, Sutter Health, Series 1998A, 5.375%,
8/15/30 - NPFG Insured
724 California Statewide Communities Development Authority, 7/18 at 100.00 AAA 724,811
Revenue Bonds, Saint Joseph Health System, Trust 2554,
18.134%, 7/01/47 - FSA Insured (IF)
1,500 California Statewide Community Development Authority, 2/10 at 101.00 AAA 1,519,920
Certificates of Participation, Sutter Health Obligated
Group, Series 1999, 5.500%, 8/15/19 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
5,224 Total Health Care 5,191,001
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.3% (0.2% OF TOTAL INVESTMENTS)
180 California Housing Finance Agency, Home Mortgage Revenue 2/16 at 100.00 AA- 182,124
Bonds, Series 2006H, 5.750%, 8/01/30 - FGIC Insured
(Alternative Minimum Tax)
100 California Housing Finance Agency, Single Family Mortgage 2/10 at 100.00 AA 100,086
Bonds II, Series 1997A-1, 6.000%, 8/01/20 - NPFG Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
280 Total Housing/Single Family 282,210
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 33.1% (23.4% OF TOTAL INVESTMENTS)
Bonita Unified School District, San Diego County, California,
General Obligation Bonds, Series 2004A:
1,890 5.250%, 8/01/23 - NPFG Insured 8/14 at 100.00 AA- 1,974,181
1,250 5.250%, 8/01/25 - NPFG Insured 8/14 at 100.00 AA- 1,288,663
2,000 California, General Obligation Veterans Welfare Bonds, Series 12/09 at 100.00 AA- 1,979,320
2001BZ, 5.375%, 12/01/24 - NPFG 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 AA- 2,799,016
1,775 5.250%, 9/01/22 - FGIC Insured 9/14 at 100.00 AA- 1,889,452
1,130 Fontana Unified School District, San Bernardino County, 8/18 at 100.00 AAA 1,241,441
California, General Obligation Bonds, Trust 2668, 8.829%,
8/01/28 - FSA Insured (IF)
1,225 Fresno Unified School District, Fresno County, California, 2/13 at 103.00 A+ 1,399,244
General Obligation Refunding Bonds, Series 1998A, 6.550%,
8/01/20 - NPFG Insured
1,180 Jurupa Unified School District, Riverside County, California, 8/13 at 100.00 A 1,219,801
General Obligation Bonds, Series 2004, 5.000%, 8/01/21 -
FGIC Insured
3,000 Pomona Unified School District, Los Angeles County, 8/11 at 103.00 A 3,313,410
California, General Obligation Refunding Bonds, Series
1997A, 6.500%, 8/01/19 - NPFG Insured
160 Roseville Joint Union High School District, Placer County, 8/15 at 100.00 AA- 164,277
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 Aa3 3,082,230
California, General Obligation Bonds, Series 2005, 5.000%,
7/01/27 - NPFG Insured
San Diego Unified School District, San Diego County,
California, General Obligation Bonds, Election of 1998, Series
2001C:
1,335 5.000%, 7/01/21 - FSA Insured 7/11 at 102.00 AAA 1,446,152
3,500 5.000%, 7/01/22 - FSA Insured 7/11 at 102.00 AAA 3,791,410
4,895 5.000%, 7/01/23 - FSA Insured 7/11 at 102.00 AAA 5,302,558
------------------------------------------------------------------------------------------------------------------------------------
28,920 Total Tax Obligation/General 30,891,155
------------------------------------------------------------------------------------------------------------------------------------
18 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 36.8% (25.9% OF TOTAL INVESTMENTS)
$ 1,000 Brea and Olinda Unified School District, Orange County, 8/11 at 101.00 AAA $ 1,014,140
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 AA- 1,270,683
1,615 5.000%, 12/01/21 - AMBAC Insured 12/13 at 100.00 AA- 1,667,504
195 Capistrano Unified School District, Orange County, 9/15 at 100.00 A 180,434
California, Special Tax Bonds, Community Facilities
District, Series 2005, 5.000%, 9/01/24 - FGIC Insured
595 Chino Redevelopment Agency, California, Merged Chino 9/16 at 101.00 BBB 485,121
Redevelopment Project Area Tax Allocation Bonds, Series
2006, 5.000%, 9/01/38 - AMBAC Insured
1,900 Corona-Norco Unified School District, Riverside County, 9/12 at 100.00 N/R 1,901,577
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 1/11 at 100.00 A3 4,878,850
Participation, Department of Public Services Facility
Phase II, Series 2001, 5.250%, 1/01/34 - AMBAC Insured
3,180 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 AAA 2,750,191
Enhanced Tobacco Settlement Revenue Bonds, Drivers Trust
2091, 9.349%, 6/01/45 - AGC Insured (IF)
1,000 Hesperia Public Financing Authority, California, 9/17 at 100.00 Baa1 763,840
Redevelopment and Housing Projects Tax Allocation Bonds,
Series 2007A, 5.000%, 9/01/37 - SYNCORA GTY Insured
435 Indian Wells Redevelopment Agency, California, Tax Allocation 9/13 at 100.00 A 421,058
Bonds, Consolidated Whitewater Project Area, Series 2003A,
5.000%, 9/01/20 - AMBAC Insured
345 Los Angeles Community Redevelopment Agency, California, Lease 9/15 at 100.00 A2 291,511
Revenue Bonds, Manchester Social Services Project, Series
2005, 5.000%, 9/01/37 - AMBAC Insured
895 Los Angeles Community Redevelopment Agency, California, Tax 12/14 at 100.00 AAA 913,437
Allocation Bonds, Bunker Hill Project, Series 2004A,
5.000%, 12/01/20 - FSA Insured
1,500 Los Angeles, California, Municipal Improvement Corporation, 1/17 at 100.00 AA- 1,452,960
Lease Revenue Bonds, Police Headquarters, Series 2006A,
4.750%, 1/01/31 - FGIC Insured
3,150 Moreno Valley Community Redevelopment Agency, California, Tax 8/17 at 100.00 A- 2,568,699
Allocation Bonds, Series 2007A, 5.000%, 8/01/38 - AMBAC
Insured
7,000 Rancho Cucamonga Redevelopment Agency, California, Housing 9/17 at 100.00 A+ 6,026,720
Set-Aside Tax Allocation Bonds, Series 2007A, 5.000%,
9/01/34 - NPFG Insured
165 Rialto Redevelopment Agency, California, Tax Allocation 9/15 at 100.00 A- 136,826
Bonds, Merged Project Area, Series 2005A, 5.000%,
9/01/35 - SYNCORA GTY Insured
205 Roseville, California, Certificates of Participation, Public 8/13 at 100.00 AA- 191,939
Facilities, Series 2003A, 5.000%, 8/01/25 - AMBAC Insured
1,500 San Jose Redevelopment Agency, California, Tax Allocation 8/15 at 100.00 A 1,320,825
Bonds, Merged Project Area, Series 2005A, 5.000%,
8/01/28 - NPFG Insured
3,565 Sweetwater Union High School District Public Financing 9/15 at 100.00 AAA 3,570,490
Authority, California, Special Tax Revenue Bonds, Series
2005A, 5.000%, 9/01/25 - FSA Insured
2,805 Yucaipa-Calimesa Joint Unified School District, San 10/11 at 100.00 AA- 2,482,846
Bernardino County, California, General Obligation
Refunding Bonds, Series 2001A, 5.000%, 10/01/31 - NPFG
Insured
------------------------------------------------------------------------------------------------------------------------------------
37,265 Total Tax Obligation/Limited 34,289,651
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 2.6% (1.8% OF TOTAL INVESTMENTS)
2,400 San Diego Unified Port District, California, Revenue Bonds, 9/14 at 100.00 A+ 2,422,176
Series 2004B, 5.000%, 9/01/29 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 42.6% (30.0% OF TOTAL INVESTMENTS) (4)
California, Various Purpose General Obligation Bonds, Series
2000:
7,995 5.750%, 3/01/22 (Pre-refunded 3/01/10) - NPFG Insured 3/10 at 101.00 AAA 8,283,060
800 5.750%, 3/01/27 (Pre-refunded 3/01/10) - NPFG Insured 3/10 at 101.00 AAA 828,824
2,500 Fresno Unified School District, Fresno County, California, 2/10 at 102.00 AAA 2,586,550
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 8,664,899
Family Residential Mortgage Revenue Refunding Bonds,
Series 1986A, 8.000%, 12/01/19 (ETM)
5,135 Palmdale Community Redevelopment Agency, California, Single No Opt. Call AAA 6,553,492
Family Restructured Mortgage Revenue Bonds, Series 1986A,
8.000%, 3/01/16 (Alternative Minimum Tax) (ETM)
Nuveen Investments 19
NPC | Nuveen Insured California Premium Income Municipal Fund, Inc. (continued)
| Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 6,220 Riverside County, California, GNMA Mortgage-Backed Securities No Opt. Call AAA $ 8,592,806
Program Single Family Mortgage Revenue Bonds, Series
1987A, 9.000%, 5/01/21 (Alternative Minimum Tax) (ETM)
1,485 San Jose, California, Single Family Mortgage Revenue Bonds, No Opt. Call Aaa 1,956,918
Series 1985A, 9.500%, 10/01/13 (ETM)
2,150 Santa Clara Valley Water District, California, Water Utility 6/10 at 100.00 AA (4) 2,223,917
System Revenue Bonds, Series 2000A, 5.125%, 6/01/31
(Pre-refunded 6/01/10) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
32,285 Total U.S. Guaranteed 39,690,466
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 0.3% (0.2% OF TOTAL INVESTMENTS)
345 Merced Irrigation District, California, Electric System 9/15 at 100.00 N/R 289,531
Revenue Bonds, Series 2005, 5.125%, 9/01/31 - SYNCORA GTY
Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 15.6% (11.0% OF TOTAL INVESTMENTS)
5,255 El Dorado Irrigation District, California, Water and Sewer 3/13 at 100.00 A+ 5,348,907
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 A+ 1,249,742
Certificates of Participation, Series 2004A, 5.000%,
3/01/21 - FGIC Insured
235 Healdsburg Public Financing Authority, California, Wastewater 4/16 at 100.00 AA- 224,676
Revenue Bonds, Series 2006, 5.000%, 4/01/36 - NPFG Insured
5,000 Indio Water Authority, California, Water Revenue Bonds, 4/16 at 100.00 A+ 4,820,700
Series 2006, 5.000%, 4/01/31 - AMBAC Insured
220 Marina Coast Water District, California, Enterprise 6/16 at 100.00 A+ 212,071
Certificate of Participation, Series 2006, 5.000%, 6/01/31
- NPFG Insured
1,500 Placerville Public Financing Authority, California, 9/16 at 100.00 N/R 1,252,830
Wastewater System Refinancing and Improvement Project
Revenue Bonds, Series 2006, 5.000%, 9/01/34 - SYNCORA GTY
Insured
1,345 West Basin Municipal Water District, California, Revenue 8/13 at 100.00 AA- 1,391,443
Certificates of Participation, Series 2003A, 5.000%,
8/01/20 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
14,785 Total Water and Sewer 14,500,369
------------------------------------------------------------------------------------------------------------------------------------
$ 126,254 Total Investments (cost $129,408,134) - 142.0% 132,338,597
===============---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 6.3% 5,829,525
------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred Shares, at Liquidation Value - (48.3)% (5) (45,000,000)
------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 93,168,122
==================================================================================================================
Primarily all of the Fund's net assets are invested in municipal
securities that guarantee the timely payment of principal and interest.
See Notes to Financial Statements, Footnote 1 - Insurance, for more
information.
(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 Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be below investment
grade. The Portfolio of Investments may reflect the ratings on certain
bonds whose insurer has experienced downgrades as of the end of the
reporting period. Please see the Portfolio Manager's Comments for an
expanded discussion of the affect on the Fund of changes to the ratings of
certain bonds in the portfolio resulting from changes to the ratings of
the underlying insurers both during the period and after period end.
(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) Auction Rate Preferred Shares, at Liquidation Value as a percentage of
Total Investments is 34.0%.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
See accompanying notes to financial statements.
20 Nuveen Investments
NCL | Nuveen Insured California Premium Income Municipal Fund 2, Inc.
| Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 5.5% (3.6% OF TOTAL
INVESTMENTS)
$ 620 California Educational Facilities Authority, Revenue Bonds, 11/10 at 100.00 A2 $ 628,854
University of the Pacific, Series 2000, 5.875%, 11/01/20 -
NPFG Insured
1,250 California Educational Facilities Authority, Student Loan 9/09 at 101.00 Baa1 1,231,613
Revenue Bonds, Cal Loan Program, Series 2001A, 5.400%,
3/01/21 - NPFG Insured (Alternative Minimum Tax)
1,500 California State University, Systemwide Revenue Bonds, Series 5/15 at 100.00 Aa3 1,527,285
2005A, 5.000%, 11/01/25 - AMBAC Insured
6,000 University of California, Revenue Bonds, Multi-Purpose 5/13 at 100.00 Aa1 6,133,800
Projects, Series 2003A, 5.000%, 5/15/27 - AMBAC Insured
(UB)
------------------------------------------------------------------------------------------------------------------------------------
9,370 Total Education and Civic Organizations 9,521,552
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 2.3% (1.5% OF TOTAL INVESTMENTS)
1,410 California Statewide Communities Development Authority, 7/18 at 100.00 AAA 1,411,579
Revenue Bonds, Saint Joseph Health System, Trust 2554,
18.134%, 7/01/47 - FSA Insured (IF)
2,000 The Regents of the University of California, Medical Center 5/15 at 101.00 Aa2 1,814,620
Pooled Revenue Bonds, Series 2007A, 4.500%, 5/15/37 - NPFG
Insured
650 University of California, Hospital Revenue Bonds, UCLA 5/12 at 101.00 N/R 661,037
Medical Center, Series 2004A, 5.500%, 5/15/18 - AMBAC
Insured
------------------------------------------------------------------------------------------------------------------------------------
4,060 Total Health Care 3,887,236
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 1.5% (1.0% OF TOTAL INVESTMENTS)
340 California Housing Finance Agency, Home Mortgage Revenue 2/16 at 100.00 AA- 344,012
Bonds, Series 2006H, 5.750%, 8/01/30 - FGIC Insured
(Alternative Minimum Tax)
1,985 California Housing Finance Agency, Home Mortgage Revenue 2/16 at 100.00 Aaa 1,965,924
Bonds, Series 2006K, 5.500%, 2/01/42 - AMBAC Insured
(Alternative Minimum Tax)
315 California Housing Finance Agency, Single Family Mortgage 2/10 at 100.00 AA 314,987
Bonds, Series 1997C-2-II, 5.625%, 8/01/20 - NPFG Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,640 Total Housing/Single Family 2,624,923
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 25.0% (16.4% OF TOTAL INVESTMENTS)
1,460 ABC Unified School District, Los Angeles County, California, 8/10 at 101.00 A+ 1,533,803
General Obligation Bonds, Series 2000B, 5.750%, 8/01/16 -
FGIC Insured
1,425 Bassett Unified School District, Los Angeles County, 8/16 at 100.00 A 1,443,055
California, General Obligation Bonds, Series 2006B,
5.250%, 8/01/30 - FGIC Insured
3,000 California State, General Obligation Bonds, Series 2006, 9/16 at 100.00 AAA 2,594,190
4.500%, 9/01/36 - FSA Insured
4,400 California, General Obligation Bonds, Series 2003, 5.000%, 2/13 at 100.00 A 4,314,772
2/01/31 - NPFG Insured
3,000 California, General Obligation Veterans Welfare Bonds, Series 12/09 at 100.00 AA- 2,968,980
2001BZ, 5.375%, 12/01/24 - NPFG Insured (Alternative
Minimum Tax)
3,200 Coast Community College District, Orange County, California, 8/18 at 100.00 AAA 2,567,584
General Obligation Bonds, Series 2006C, 0.000%, 8/01/31 -
FSA Insured
2,210 Fontana Unified School District, San Bernardino County, 8/18 at 100.00 AAA 2,427,950
California, General Obligation Bonds, Trust 2668, 8.829%,
8/01/28 - FSA Insured (IF)
1,255 Los Angeles Community College District, Los Angeles County, 8/15 at 100.00 AAA 1,306,267
California, General Obligation Bonds, Series 2005A,
5.000%, 8/01/24 - FSA Insured
4,000 Los Angeles Unified School District, Los Angeles County, 7/17 at 100.00 AAA 4,028,680
California, General Obligation Bonds, Series 2007A,
4.500%, 7/01/24 - FSA Insured
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 (UB) 8/14 at 102.00 AAA 2,267,849
3,250 5.000%, 8/01/22 - FSA Insured (UB) 8/14 at 102.00 AAA 3,576,430
3,395 5.000%, 8/01/23 - FSA Insured (UB) 8/14 at 102.00 AAA 3,706,186
1,270 Merced City School District, Merced County, California, 8/13 at 100.00 A 1,305,370
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 AA- 313,153
California, General Obligation Bonds, Series 2006B,
5.000%, 8/01/27 - FGIC Insured
Nuveen Investments 21
NCL | Nuveen Insured California Premium Income Municipal Fund 2, Inc.(continued)
| Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 2,500 Sacramento City Unified School District, Sacramento County, 7/15 at 100.00 Aa3 $ 2,568,525
California, General Obligation Bonds, Series 2005, 5.000%,
7/01/27 - NPFG Insured
1,125 San Diego Unified School District, California, General No Opt. Call AA 625,680
Obligation Bonds, Election of 1998, Series 1999A, 0.000%,
7/01/21 - FGIC Insured
2,000 San Francisco Community College District, California, General 6/10 at 102.00 Aa3 2,007,080
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 1,032,030
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 A 2,527,470
General Obligation Bonds, Series 2004A, 5.000%, 8/01/21 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
43,350 Total Tax Obligation/General 43,115,054
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 60.4% (39.6% 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 3,285,406
8,000 0.000%, 9/01/21 - FSA Insured No Opt. Call AAA 4,113,760
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 AA- 1,594,788
1,780 5.000%, 12/01/23 - AMBAC Insured 12/13 at 100.00 AA- 1,825,176
3,725 California State Public Works Board, Lease Revenue Bonds, 1/16 at 100.00 A- 3,843,008
Department of Corrections & Rehabilitation, Series 2005J,
5.000%, 1/01/17 - AMBAC Insured
380 Capistrano Unified School District, Orange County, 9/15 at 100.00 A 351,614
California, Special Tax Bonds, Community Facilities
District, Series 2005, 5.000%, 9/01/24 - FGIC Insured
6,000 El Monte, California, Senior Lien Certificates of 1/11 at 100.00 A3 6,031,080
Participation, Department of Public Services Facility
Phase II, Series 2001, 5.000%, 1/01/21 - AMBAC Insured
8,280 Fontana Public Financing Authority, California, Tax 10/15 at 100.00 A 7,041,478
Allocation Revenue Bonds, North Fontana Redevelopment
Project, Series 2005A, 5.000%, 10/01/32 - AMBAC Insured
6,215 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 AAA 5,374,981
Enhanced Tobacco Settlement Revenue Bonds, Drivers Trust
2091, 9.349%, 6/01/45 - AGC Insured (IF)
2,000 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 A- 1,175,120
Enhanced Tobacco Settlement Revenue Bonds, Residual Series
2040, 10.120%, 6/01/45 - FGIC Insured (IF)
Golden State Tobacco Securitization Corporation, California,
Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A:
20,110 5.000%, 6/01/35 - FGIC Insured 6/15 at 100.00 A- 17,848,225
2,345 5.000%, 6/01/38 - FGIC Insured 6/15 at 100.00 A- 2,068,994
7,500 5.000%, 6/01/45 - FGIC Insured 6/15 at 100.00 A- 6,468,675
1,255 Hesperia Public Financing Authority, California, 9/17 at 100.00 Baa1 958,619
Redevelopment and Housing Projects Tax Allocation Bonds,
Series 2007A, 5.000%, 9/01/37 - SYNCORA GTY Insured
1,700 Hesperia Unified School District, San Bernardino County, 2/17 at 100.00 BBB+ 1,416,151
California, Certificates of Participation, Capital
Improvement, Series 2007, 5.000%, 2/01/41 - AMBAC Insured
1,810 Kern County Board of Education, California, Certificates of 5/10 at 100.00 A 1,811,032
Participation Refunding, Series 1998A, 5.200%, 5/01/28 -
NPFG Insured
5,000 La Quinta Redevelopment Agency, California, Tax Allocation 9/09 at 100.00 A+ 4,544,900
Refunding Bonds, Redevelopment Project Area 1, Series
1998, 5.200%, 9/01/28 - AMBAC Insured
2,185 Los Angeles Community Redevelopment Agency, California, Lease 9/15 at 100.00 A2 1,846,238
Revenue Bonds, Manchester Social Services Project, Series
2005, 5.000%, 9/01/37 - AMBAC Insured
1,000 Los Angeles Community Redevelopment Agency, California, Tax 12/14 at 100.00 AAA 1,020,600
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 1,352,563
California, Proposition A First Tier Senior Sales Tax
Revenue Bonds, Series 2003B, 5.000%, 7/01/19 - NPFG Insured
4,000 Los Angeles, California, Certificates of Participation, 6/13 at 100.00 AA- 4,007,800
Municipal Improvement Corporation, Series 2003AW, 5.000%,
6/01/33 - AMBAC Insured
3,000 Los Angeles, California, Municipal Improvement Corporation, 1/17 at 100.00 AA- 2,905,920
Lease Revenue Bonds, Police Headquarters, Series 2006A,
4.750%, 1/01/31 - FGIC Insured
22 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 6,120 Moreno Valley Community Redevelopment Agency, California, Tax 8/17 at 100.00 A- $ 4,990,615
Allocation Bonds, Series 2007A, 5.000%, 8/01/38 - AMBAC
Insured
4,140 Plumas County, California, Certificates of Participation, 6/13 at 101.00 A- 3,690,189
Capital Improvement Program, Series 2003A, 5.000%,
6/01/28 - AMBAC Insured
390 Poway Redevelopment Agency, California, Tax Allocation 12/10 at 102.00 AA 371,530
Refunding Bonds, Paguay Redevelopment Project, Series 2000,
5.750%, 6/15/33 - NPFG Insured
325 Rialto Redevelopment Agency, California, Tax Allocation Bonds, 9/15 at 100.00 A- 269,506
Merged Project Area, Series 2005A, 5.000%, 9/01/35 -
SYNCORA GTY Insured
1,000 Rocklin Unified School District, Placer County, California, 9/13 at 100.00 A 914,400
Special Tax Bonds, Community Facilities District 1, Series
2004, 5.000%, 9/01/25 - NPFG Insured
405 Roseville, California, Certificates of Participation, Public 8/13 at 100.00 AA- 379,197
Facilities, Series 2003A, 5.000%, 8/01/25 - AMBAC Insured
5,000 San Bernardino Joint Powers Financing Authority, California, 9/09 at 102.00 A 5,114,450
Certificates of Participation Refunding, Police Station
Financing Project, Series 1999, 5.500%, 9/01/20 - NPFG
Insured
1,500 San Jose Redevelopment Agency, California, Tax Allocation 8/15 at 100.00 A 1,320,825
Bonds, Merged Project Area, Series 2005A, 5.000%, 8/01/28 -
NPFG Insured
5,510 Sweetwater Union High School District Public Financing 9/15 at 100.00 AAA 5,410,600
Authority, California, Special Tax Revenue Bonds, Series
2005A, 5.000%, 9/01/28 - FSA Insured
1,020 Washington Unified School District, Yolo County, California, 8/17 at 100.00 BBB+ 909,840
Certificates of Participation, Series 2007, 5.125%, 8/01/37
- AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
119,610 Total Tax Obligation/Limited 104,257,280
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 7.1% (4.6% OF TOTAL INVESTMENTS)
6,500 Foothill/Eastern Transportation Corridor Agency, California, 1/10 at 65.32 A 3,415,620
Toll Road Revenue Refunding Bonds, Series 1999, 0.000%,
1/15/18 - NPFG Insured
4,000 Orange County Transportation Authority, California, Toll Road 8/13 at 100.00 A1 4,118,640
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 A1 4,622,250
Refunding Bonds, San Francisco International Airport,
Second Series 2001, Issue 27A, 5.250%, 5/01/31 - NPFG
Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
15,500 Total Transportation 12,156,510
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 19.7% (13.0% OF TOTAL INVESTMENTS) (4)
1,380 California Educational Facilities Authority, Revenue Bonds, 11/10 at 100.00 A2 (4) 1,466,733
University of the Pacific, Series 2000, 5.875%, 11/01/20
(Pre-refunded 11/01/10) - MBIA Insured
California, Various Purpose General Obligation Bonds, Series
2000:
7,995 5.750%, 3/01/22 (Pre-refunded 3/01/10) - NPFG Insured 3/10 at 101.00 AAA 8,283,060
1,900 5.750%, 3/01/27 (Pre-refunded 3/01/10) - NPFG Insured 3/10 at 101.00 AAA 1,968,457
2,085 Central Unified School District, Fresno County, California, 9/09 at 100.00 N/R (4) 2,127,680
General Obligation Bonds, Series 1993, 5.625%, 3/01/18 -
AMBAC Insured (ETM)
3,000 Escondido Union High School District, San Diego County, 11/09 at 100.00 A (4) 3,025,560
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) 2/10 at 102.00 AAA 1,101,870
1,160 5.125%, 8/01/22 - FSA Insured (ETM) 2/10 at 102.00 AAA 1,200,159
1,220 5.125%, 8/01/23 - FSA Insured (ETM) 2/10 at 102.00 AAA 1,262,236
1,500 Hacienda La Puente Unified School District, Los Angeles 8/10 at 101.00 A+ (4) 1,581,945
County, California, General Obligation Bonds, Series 2000A,
5.250%, 8/01/25 (Pre-refunded 8/01/10) - MBIA 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 1,167,320
1,000 5.250%, 8/01/22 (Pre-refunded 8/01/14) - FSA Insured 8/14 at 100.00 AAA 1,167,320
1,610 Poway Redevelopment Agency, California, Tax Allocation 12/10 at 102.00 N/R (4) 1,749,909
Refunding Bonds, Paguay Redevelopment Project, Series 2000,
5.750%, 6/15/33 (Pre-refunded 12/15/10) - MBIA Insured
Nuveen Investments 23
NCL | Nuveen Insured California Premium Income Municipal Fund 2, Inc.(continued)
| Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 4,320 Riverside County, California, GNMA Mortgage-Backed Securities No Opt. Call AAA $ 5,875,934
Program Single Family Mortgage Revenue Bonds, Series 1987B,
8.625%, 5/01/16 (Alternative Minimum Tax) (ETM)
1,000 Sacramento County Sanitation District Financing Authority, 12/10 at 101.00 AA (4) 1,072,090
California, Revenue Bonds, Series 2000A, 5.500%, 12/01/20
(Pre-refunded 12/01/10) - AMBAC Insured
905 University of California, Hospital Revenue Bonds, UCLA Medical 5/12 at 101.00 N/R (4) 1,018,197
Center, Series 2004A, 5.500%, 5/15/18 (Pre-refunded
5/15/12) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
31,140 Total U.S. Guaranteed 34,068,470
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 8.1% (5.3% OF TOTAL INVESTMENTS)
3,740 California Pollution Control Financing Authority, Revenue 9/09 at 101.00 A1 3,750,509
Refunding Bonds, Southern California Edison Company, Series
1999B, 5.450%, 9/01/29 - NPFG Insured
670 Merced Irrigation District, California, Electric System 9/15 at 100.00 N/R 562,277
Revenue Bonds, Series 2005, 5.125%, 9/01/31 - SYNCORA GTY
Insured
100 Sacramento City Financing Authority, California, Capital 12/09 at 102.00 N/R 101,258
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 A- 1,755,059
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 - NPFG Insured 7/13 at 100.00 A1 2,820,188
5,000 5.000%, 7/01/28 - NPFG Insured 7/13 at 100.00 A1 4,969,500
------------------------------------------------------------------------------------------------------------------------------------
14,260 Total Utilities 13,958,791
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 22.8% (15.0% OF TOTAL INVESTMENTS)
2,975 Chino Basin Regional Finance Authority, California, Sewerage 2/10 at 100.00 AA- 2,986,841
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 A+ 2,032,100
Certificates of Participation, Series 2004A, 5.000%,
3/01/21 - FGIC Insured
750 Fortuna Public Finance Authority, California, Water Revenue 10/16 at 100.00 AAA 752,633
Bonds, Series 2006, 5.000%, 10/01/36 - FSA Insured
460 Healdsburg Public Financing Authority, California, Wastewater 4/16 at 100.00 AA- 439,792
Revenue Bonds, Series 2006, 5.000%, 4/01/36 - NPFG Insured
2,700 Los Angeles County Sanitation Districts Financing Authority, 10/13 at 100.00 AAA 2,895,588
California, Senior Revenue Bonds, Capital Projects, Series
2003A, 5.000%, 10/01/21 - FSA Insured
2,000 Los Angeles, California, Wastewater System Revenue Bonds, 6/15 at 100.00 AA 1,943,740
Series 2005A, 4.500%, 6/01/29 - NPFG Insured
430 Marina Coast Water District, California, Enterprise 6/16 at 100.00 A+ 414,503
Certificate of Participation, Series 2006, 5.000%, 6/01/31
- NPFG Insured
12,000 Orange County Sanitation District, California, Certificates of 8/13 at 100.00 AAA 12,109,800
Participation, Series 2003, 5.000%, 2/01/33 - FGIC Insured
(UB)
1,520 San Buenaventura, California, Water Revenue Certificates of 10/14 at 100.00 AA 1,528,740
Participation, Series 2004, 5.000%, 10/01/25 - AMBAC Insured
1,000 San Diego County Water Authority, California, Water Revenue 5/18 at 100.00 AAA 1,008,330
Certificates of Participation, Series 2008A, 5.000%,
5/01/38 - FSA Insured
3,675 San Dieguito Water District, California, Water Revenue Bonds, 10/14 at 100.00 AA+ 3,786,132
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 AA+ 1,480,514
445 5.000%, 2/01/20 - FGIC Insured 2/14 at 100.00 AA+ 466,752
465 5.000%, 2/01/21 - FGIC Insured 2/14 at 100.00 AA+ 484,135
2,500 West Basin Municipal Water District, California, Revenue 8/13 at 100.00 AA- 2,502,525
Certificates of Participation, Series 2003A, 5.000%,
8/01/30 - NPFG Insured
24 Nuveen Investments
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 $ 2,050,783
2,530 5.000%, 10/01/33 - FGIC Insured 10/13 at 100.00 AAA 2,548,469
------------------------------------------------------------------------------------------------------------------------------------
38,860 Total Water and Sewer 39,431,377
------------------------------------------------------------------------------------------------------------------------------------
$ 278,790 Total Investments (cost $262,331,787) - 152.4% 263,021,193
===============---------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (10.4)% (17,880,000)
------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 4.2% 7,321,061
------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred Shares, at Liquidation Value - (46.2)% (5) (79,825,000)
------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 172,637,254
==================================================================================================================
Primarily all of the Fund's net assets are invested in municipal
securities that guarantee the timely payment of principal and interest.
See Notes to Financial Statements, Footnote 1 - Insurance, for more
information.
(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 Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be below investment
grade.
The Portfolio of Investments may reflect the ratings on certain bonds
whose insurer has experienced downgrades as of the end of the reporting
period. Please see the Portfolio Manager's Comments for an expanded
discussion of the affect on the Fund of changes to the ratings of certain
bonds in the portfolio resulting from changes to the ratings of the
underlying insurers both during the period and after period end.
(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) Auction Rate Preferred Shares, at Liquidation Value as a percentage of
Total Investments is 30.3%.
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 Notes to
Financial Statements, Footnote 1 - Inverse Floating Rate Securities for
more information.
See accompanying notes to financial statements.
Nuveen Investments 25
NCU | Nuveen California Premium Income Municipal Fund
| Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 6.7% (4.4% OF TOTAL INVESTMENTS)
$ 1,500 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 Baa3 $ 1,254,495
Settlement Asset-Backed Bonds, Alameda County Tobacco Asset
Securitization Corporation, Series 2002, 5.750%, 6/01/29
230 California County Tobacco Securitization Agency, Tobacco 6/15 at 100.00 BBB 210,119
Settlement Asset-Backed Bonds, Sonoma County Tobacco
Securitization Corporation, Series 2005, 4.250%, 6/01/21
3,010 California Statewide Financing Authority, Tobacco Settlement 5/12 at 100.00 Baa3 2,917,533
Asset-Backed Bonds, Pooled Tobacco Securitization Program,
Series 2002A, 5.625%, 5/01/29
1,350 Golden State Tobacco Securitization Corporation, California, 6/22 at 100.00 BBB 711,180
Enhanced Tobacco Settlement Asset-Backed Bonds, Series
2007A-2, 0.000%, 6/01/37
------------------------------------------------------------------------------------------------------------------------------------
6,090 Total Consumer Staples 5,093,327
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 6.5% (4.2% OF TOTAL
INVESTMENTS)
70 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 A3 64,905
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 45,329
60 5.000%, 11/01/25 11/15 at 100.00 A2 58,121
1,112 California State Public Works Board, Lease Revenue Bonds, 3/18 at 100.00 Aa2 1,099,879
University of California Regents, Trust 1065, 9.041%,
3/01/33 (IF)
2,000 California State University, Systemwide Revenue Bonds, Series 11/15 at 100.00 Aa3 2,023,140
2005C, 5.000%, 11/01/27 - NPFG Insured
1,500 University of California, Revenue Bonds, Multi-Purpose 5/13 at 100.00 Aa1 1,610,280
Projects, Series 2003A, 5.125%, 5/15/17 - AMBAC Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
4,787 Total Education and Civic Organizations 4,901,654
------------------------------------------------------------------------------------------------------------------------------------
ENERGY - 0.6% (0.4% OF TOTAL INVESTMENTS)
500 Virgin Islands Public Finance Authority, Revenue Bonds, 1/15 at 100.00 BBB 421,460
Refinery Project Hovensa LLC, Series 2007, 4.700%, 7/01/22
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 27.2% (17.7% OF TOTAL INVESTMENTS)
4,090 California Health Facilities Financing Authority, Hospital 11/09 at 100.00 CCC 2,705,944
Revenue Bonds, Downey Community Hospital, Series 1993,
5.750%, 5/15/15
155 California Health Facilities Financing Authority, Revenue 4/16 at 100.00 A+ 138,029
Bonds, Kaiser Permanante System, Series 2006, 5.000%,
4/01/37
3,525 California Health Facilities Financing Authority, Revenue 11/16 at 100.00 Aa3 3,181,454
Bonds, Sutter Health, Series 2007A, 5.250%, 11/15/46 (UB)
1,500 California Infrastructure Economic Development Bank, Revenue 8/11 at 102.00 A+ 1,508,820
Bonds, Kaiser Hospital Assistance LLC, Series 2001A,
5.550%, 8/01/31
685 California Municipal Financing Authority, Certificates of 2/17 at 100.00 Baa2 536,417
Participation, Community Hospitals of Central California,
Series 2007, 5.250%, 2/01/46
377 California Statewide Communities Development Authority, 7/18 at 100.00 AAA 376,922
Revenue Bonds, Saint Joseph Health System, Trust 2554,
18.134%, 7/01/47 - FSA Insured (IF)
1,000 California Statewide Community Development Authority, Insured 10/17 at 100.00 A 901,190
Health Facility Revenue Bonds, Henry Mayo Newhall Memorial
Hospital, Series 2007A, 5.000%, 10/01/37
490 California Statewide Community Development Authority, Revenue 3/16 at 100.00 A+ 436,806
Bonds, Kaiser Permanante System, Series 2006, 5.000%,
3/01/41
730 California Statewide Community Development Authority, Revenue 8/16 at 100.00 A+ 706,888
Bonds, Kaiser Permanente System, Series 2001C, 5.250%,
8/01/31
1,000 California Statewide Community Development Authority, Revenue 4/17 at 100.00 A+ 875,220
Bonds, Kaiser Permanente System, Series 2007A, 4.750%,
4/01/33
3,000 California Statewide Community Development Authority, Revenue 8/19 at 100.00 AA 3,175,316
Bonds, Methodist Hospital Project, Series 2009, 6.750%,
2/01/38
2,100 California Statewide Community Development Authority, Revenue No Opt. Call A 2,066,190
Bonds, Sherman Oaks Health System, Series 1998A, 5.000%,
8/01/22 - AMBAC Insured
26 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 1,690 California Statewide Community Development Authority, Revenue 11/15 at 100.00 Aa3 $ 1,464,233
Bonds, Sutter Health, Series 2005A, 5.000%, 11/15/43
760 Loma Linda, California, Hospital Revenue Bonds, Loma Linda 12/18 at 100.00 BBB 795,591
University Medical Center, Series 2008A, 8.250%, 12/01/38
800 Sierra View Local Health Care District (Tulare County, 1/10 at 100.00 A- 786,864
California) Refunding Revenue Bonds, Series 1998, 5.400%,
7/01/22
1,000 The Regents of the University of California, Medical Center 5/15 at 101.00 Aa2 907,310
Pooled Revenue Bonds, Series 2007A, 4.500%, 5/15/37 - NPFG
Insured
------------------------------------------------------------------------------------------------------------------------------------
22,902 Total Health Care 20,563,194
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 3.7% (2.4% OF TOTAL INVESTMENTS)
2,500 California Housing Finance Agency, California, Home Mortgage 2/18 at 100.00 AA- 2,422,525
Revenue Bonds, Series 2008L, 5.500%, 8/01/38
160 California Housing Finance Agency, Home Mortgage Revenue 2/16 at 100.00 AA- 161,888
Bonds, Series 2006H, 5.750%, 8/01/30 - FGIC Insured
(Alternative Minimum Tax)
175 California Housing Finance Agency, Single Family Mortgage 2/10 at 100.00 AA 175,151
Bonds II, Series 1997A-1, 6.000%, 8/01/20 - NPFG Insured
(Alternative Minimum Tax)
5 California Rural Home Mortgage Finance Authority, No Opt. Call AAA 5,102
Mortgage-Backed Securities Program Single Family Mortgage
Revenue Bonds, Series 1996C, 7.500%, 8/01/27 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,840 Total Housing/Single Family 2,764,666
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.6% (0.4% OF TOTAL INVESTMENTS)
500 California Pollution Control Financing Authority, Solid Waste 1/16 at 102.00 BBB 460,880
Disposal Revenue Bonds, Waste Management Inc., Series
2002A, 5.000%, 1/01/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 21.5% (14.0% OF TOTAL INVESTMENTS)
1,500 California, General Obligation Bonds, Series 2003, 5.000%, 2/13 at 100.00 A 1,470,945
2/01/31 - NPFG Insured
4,000 California, General Obligation Veterans Welfare Bonds, Series 12/09 at 100.00 AA- 3,754,080
1999BR, 5.300%, 12/01/29 (Alternative Minimum Tax)
6,000 Hartnell Community College District, California, General 6/16 at 100.00 AAA 6,127,020
Obligation Bonds, Series 2006, 5.000%, 6/01/29 - FSA
Insured (UB)
3,000 Pomona Unified School District, Los Angeles County, 8/11 at 103.00 A 3,352,410
California, General Obligation Refunding Bonds, Series
1997A, 6.150%, 8/01/15 - NPFG Insured
15 Riverside Community College District, California, General 8/14 at 100.00 AA- 16,253
Obligation Bonds, Series 2004A, 5.250%, 8/01/22 - NPFG
Insured
135 Roseville Joint Union High School District, Placer County, 8/15 at 100.00 AA- 138,609
California, General Obligation Bonds, Series 2006B, 5.000%,
8/01/27 - FGIC Insured
1,355 San Jose-Evergreen Community College District, Santa Clara 9/15 at 100.00 Aa2 1,406,151
County, California, General Obligation Bonds, Series 2005A,
5.000%, 9/01/25 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
16,005 Total Tax Obligation/General 16,265,468
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 47.5% (31.0% OF TOTAL INVESTMENTS)
1,000 Bell Community Redevelopment Agency, California, Tax 10/13 at 100.00 BBB- 938,000
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 AA- 1,742,782
1,865 5.000%, 12/01/24 - AMBAC Insured 12/13 at 100.00 AA- 1,907,242
5,920 California State Public Works Board, Lease Revenue Bonds, 11/09 at 101.00 A- 5,984,229
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 A 985,409
5.000%, 7/01/15
165 Capistrano Unified School District, Orange County, California, 9/15 at 100.00 A 152,675
Special Tax Bonds, Community Facilities District, Series
2005, 5.000%, 9/01/24 - FGIC Insured
500 Chino Redevelopment Agency, California, Merged Chino 9/16 at 101.00 BBB 407,665
Redevelopment Project Area Tax Allocation Bonds, Series
2006, 5.000%, 9/01/38 - AMBAC Insured
Nuveen Investments 27
NCU | Nuveen California Premium Income Municipal Fund (continued)
| Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 4,350 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 A- $ 3,751,832
Tobacco Settlement Asset-Backed Revenue Bonds, Series
2005A, 5.000%, 6/01/45 - AMBAC Insured
Irvine, California, Unified School District, Community
Facilities District Special Tax Bonds, Series 2006A:
75 5.000%, 9/01/26 9/16 at 100.00 N/R 65,589
175 5.125%, 9/01/36 9/16 at 100.00 N/R 144,085
3,500 Livermore Redevelopment Agency, California, Tax Allocation 8/11 at 100.00 A 3,155,180
Revenue Bonds, Livermore Redevelopment Project Area,
Series 2001A, 5.000%, 8/01/26 - NPFG Insured
310 Los Angeles Community Redevelopment Agency, California, Lease 9/15 at 100.00 A2 261,938
Revenue Bonds, Manchester Social Services Project, Series
2005, 5.000%, 9/01/37 - AMBAC Insured
2,000 Los Angeles, California, Municipal Improvement Corporation, 1/17 at 100.00 AA- 1,937,280
Lease Revenue Bonds, Police Headquarters, Series 2006A,
4.750%, 1/01/31 - FGIC Insured
3,230 Murrieta Redevelopment Agency, California, Tax Allocation 8/15 at 100.00 A 2,679,027
Bonds, Series 2005, 5.000%, 8/01/35 - NPFG Insured
155 Rialto Redevelopment Agency, California, Tax Allocation 9/15 at 100.00 A- 128,534
Bonds, Merged Project Area, Series 2005A, 5.000%, 9/01/35
- SYNCORA GTY Insured
190 Roseville, California, Certificates of Participation, Public 8/13 at 100.00 AA- 177,895
Facilities, Series 2003A, 5.000%, 8/01/25 - AMBAC Insured
1,500 Sacramento City Financing Authority, California, Lease No Opt. Call A 1,510,890
Revenue Refunding Bonds, Series 1993A, 5.400%, 11/01/20 -
NPFG Insured
3,000 Sacramento City Financing Authority, California, Lease No Opt. Call A 3,021,780
Revenue Refunding Bonds, Series 1993B, 5.400%, 11/01/20
2,000 San Francisco City and County, California, Certificates of 4/19 at 100.00 AA- 2,045,360
Participation, Multiple Capital Improvement Projects,
Series 2009A, 5.200%, 4/01/26
San Marcos Public Facilities Authority, California, Revenue
Refunding Bonds, Series 1998:
1,500 5.800%, 9/01/18 9/09 at 100.50 Baa3 1,505,760
1,000 5.800%, 9/01/27 9/09 at 100.50 Baa3 950,750
325 San Mateo Union High School District, San Mateo County, 12/17 at 100.00 N/R 283,020
California, Certificates of Participation, Phase 1, Series
2007A, 5.000%, 12/15/30 - AMBAC Insured
2,050 Santa Barbara County, California, Certificates of 12/11 at 102.00 AA+ 2,199,814
Participation, Series 2001, 5.250%, 12/01/19 - AMBAC
Insured
------------------------------------------------------------------------------------------------------------------------------------
37,410 Total Tax Obligation/Limited 35,936,736
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 3.3% (2.1% OF TOTAL INVESTMENTS)
780 Bay Area Toll Authority, California, Revenue Bonds, San 4/16 at 100.00 AA 796,185
Francisco Bay Area Toll Bridge, Series 2006, 5.000%,
4/01/31 (UB)
220 Bay Area Toll Authority, California, Revenue Bonds, San 4/18 at 100.00 AA 249,373
Francisco Bay Area Toll Bridge, Series 2008, Trust 3211,
13.298%, 4/01/39 (IF)
2,000 Foothill/Eastern Transportation Corridor Agency, California, 1/10 at 100.00 BBB- 1,456,760
Toll Road Revenue Bonds, Series 1995A, 5.000%, 1/01/35
------------------------------------------------------------------------------------------------------------------------------------
3,000 Total Transportation 2,502,318
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 16.0% (10.5% OF TOTAL INVESTMENTS) (4)
2,250 California Department of Water Resources, Power Supply 5/12 at 101.00 Aaa 2,510,123
Revenue Bonds, Series 2002A, 5.125%, 5/01/18 (Pre-refunded
5/01/12)
3,000 California Infrastructure Economic Development Bank, First No Opt. Call AAA 3,531,660
Lien Revenue Bonds, San Francisco Bay Area Toll Bridge,
Series 2003A, 5.000%, 7/01/22 - FSA Insured (ETM)
3,495 Orange County Sanitation District, California, Certificates 8/13 at 100.00 AAA 4,019,739
of Participation, Series 2003, 5.250%, 2/01/21
(Pre-refunded 8/01/13) - FGIC Insured
2,000 Puerto Rico, General Obligation and Public Improvement Bonds, 7/10 at 100.00 A (4) 2,078,520
Series 2000, 5.750%, 7/01/21 (Pre-refunded 7/01/10) - NPFG
Insured
------------------------------------------------------------------------------------------------------------------------------------
10,745 Total U.S. Guaranteed 12,140,042
------------------------------------------------------------------------------------------------------------------------------------
28 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 8.2% (5.3% OF TOTAL INVESTMENTS)
$ 890 Long Beach Bond Finance Authority, California, Natural Gas No Opt. Call A $ 859,882
Purchase Revenue Bonds, Series 2007A, 5.500%, 11/15/37
275 Los Angeles Department of Water and Power, California, Power 7/13 at 100.00 AA- 294,580
System Revenue Bonds, Series 2003A-2, 5.000%, 7/01/21 -
NPFG Insured
295 Merced Irrigation District, California, Electric System 9/15 at 100.00 N/R 247,570
Revenue Bonds, Series 2005, 5.125%, 9/01/31 - SYNCORA GTY
Insured
4,580 Sacramento Municipal Utility District, California, Electric 8/12 at 100.00 AAA 4,770,436
Revenue Refunding Bonds, Series 2002Q, 5.250%, 8/15/20 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
6,040 Total Utilities 6,172,468
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 7.0% (4.6% OF TOTAL INVESTMENTS)
1,125 Burbank, California, Wastewater System Revenue Bonds, Series 6/14 at 100.00 AA+ 1,158,919
2004A, 5.000%, 6/01/23 - AMBAC Insured
205 Healdsburg Public Financing Authority, California, Wastewater 4/16 at 100.00 AA- 195,994
Revenue Bonds, Series 2006, 5.000%, 4/01/36 - NPFG Insured
670 Metropolitan Water District of Southern California, 7/19 at 100.00 AAA 749,596
Waterworks Revenue Bonds, Tender Option Bond Trust 09-8B,
16.669%, 7/01/35 (IF)
1,500 Orange County Water District, California, Revenue 8/19 at 100.00 AAA 1,584,480
Certificates of Participation, Tender Option Bond Trust
11782-1, 17.291%, 8/15/41 (IF)
1,795 Woodbridge Irrigation District, California, Certificates of 7/13 at 100.00 A+ 1,618,875
Participation, Water Systems Project, Series 2003, 5.500%,
7/01/33
------------------------------------------------------------------------------------------------------------------------------------
5,295 Total Water and Sewer 5,307,864
------------------------------------------------------------------------------------------------------------------------------------
$ 116,114 Total Long-Term Investments (cost $114,006,800) - 148.8% 112,530,077
===============---------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 4.6% (3.0% OF TOTAL INVESTMENTS)
TAX OBLIGATION/GENERAL - 4.6% (3.0% OF TOTAL INVESTMENTS)
$ 3,500 California, General Obligation Bonds, Variable Rate Demand 10/09 at 100.00 A-1+ 3,500,000
Obligations, Series 2005B-4, 0.200%, 5/01/40 (5)
===============---------------------------------------------------------------------------------------------------------------------
Total Short-Term Investments (cost $3,500,000) 3,500,000
------------------------------------------------------------------------------------------------------------------
Total Investments (cost $117,506,800) - 153.4% 116,030,077
------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (8.8)% (6,650,000)
------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 6.8% 5,125,993
------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred Shares, at Liquidation Value - (51.4)% (6) (38,875,000)
------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 75,631,070
==================================================================================================================
(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 Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's 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) Auction Rate Preferred Shares, at Liquidation Value as a percentage of
Total Investments is 33.5%.
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 Notes to
Financial Statements, Footnote 1 - Inverse Floating Rate Securities for
more information.
See accompanying notes to financial statements.
Nuveen Investments 29
NAC | Nuveen California Dividend Advantage Municipal Fund
| Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 6.3% (4.2% OF TOTAL INVESTMENTS)
$ 990 California County Tobacco Securitization Agency, Tobacco 6/15 at 100.00 BBB $ 904,424
Settlement Asset-Backed Bonds, Sonoma County Tobacco
Securitization Corporation, Series 2005, 4.250%, 6/01/21
7,500 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 5,850,075
Enhanced Tobacco Settlement Asset-Backed Bonds, Series
2007A-1, 5.750%, 6/01/47
24,265 Golden State Tobacco Securitization Corporation, California, 6/22 at 100.00 BBB 12,782,801
Enhanced Tobacco Settlement Asset-Backed Bonds, Series
2007A-2, 0.000%, 6/01/37
------------------------------------------------------------------------------------------------------------------------------------
32,755 Total Consumer Staples 19,537,300
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 7.2% (4.8% OF TOTAL
INVESTMENTS)
290 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 A3 268,891
University of Redlands, Series 2005A, 5.000%, 10/01/35
10,000 California Educational Facilities Authority, Revenue Bonds, 10/17 at 100.00 AA+ 9,793,600
University of Southern California, Series 2007A, 4.500%,
10/01/33 (UB)
California Educational Facilities Authority, Revenue Bonds,
University of the Pacific, Series 2006:
200 5.000%, 11/01/21 11/15 at 100.00 A2 201,464
265 5.000%, 11/01/25 11/15 at 100.00 A2 256,700
4,685 California State Public Works Board, Lease Revenue Bonds, 3/18 at 100.00 Aa2 4,633,934
University of California Regents, Trust 1065, 9.041%,
3/01/33 (IF)
615 California Statewide Community Development Authority, Revenue 10/13 at 100.00 N/R 455,826
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 BBB 3,025,680
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 Aa1 3,757,320
Projects, Series 2003A, 5.125%, 5/15/17 - AMBAC Insured
(UB)
------------------------------------------------------------------------------------------------------------------------------------
22,555 Total Education and Civic Organizations 22,393,415
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 26.2% (17.4% OF TOTAL INVESTMENTS)
2,160 California Health Facilities Financing Authority, Health 3/13 at 100.00 A 2,195,597
Facility Revenue Bonds, Adventist Health System/West,
Series 2003A, 5.000%, 3/01/15
660 California Health Facilities Financing Authority, Revenue 4/16 at 100.00 A+ 587,737
Bonds, Kaiser Permanante System, Series 2006, 5.000%,
4/01/37
10,000 California Health Facilities Financing Authority, Revenue 11/16 at 100.00 Aa3 8,682,000
Bonds, Sutter Health, Series 2007A, 5.000%, 11/15/42 -
NPFG Insured
14,895 California Health Facilities Financing Authority, Revenue 11/16 at 100.00 Aa3 13,443,333
Bonds, Sutter Health, Series 2007A, 5.250%, 11/15/46 (UB)
1,120 California Statewide Communities Development Authority, 3/15 at 100.00 A 979,944
Revenue Bonds, Adventist Health System West, Series 2005A,
5.000%, 3/01/35
1,586 California Statewide Communities Development Authority, 7/18 at 100.00 AAA 1,587,776
Revenue Bonds, Saint Joseph Health System, Trust 2554,
18.134%, 7/01/47 - FSA Insured (IF)
California Statewide Communities Development Authority,
Revenue Bonds, ValleyCare Health System, Series 2007A:
900 4.800%, 7/15/17 No Opt. Call N/R 751,959
3,325 5.125%, 7/15/31 7/17 at 100.00 N/R 2,192,937
19,420 California Statewide Community Development Authority, Revenue 3/16 at 100.00 A+ 17,311,758
Bonds, Kaiser Permanante System, Series 2006, 5.000%,
3/01/41
3,095 California Statewide Community Development Authority, Revenue 8/16 at 100.00 A+ 2,997,012
Bonds, Kaiser Permanente System, Series 2001C, 5.250%,
8/01/31
9,980 California Statewide Community Development Authority, Revenue 3/16 at 100.00 AAA 10,034,990
Bonds, Kaiser Permanente System, 5.000%, 3/01/41 - BHAC
Insured (UB)
2,250 California Statewide Community Development Authority, Revenue 8/19 at 100.00 AA 2,381,490
Bonds, Methodist Hospital Project, Series 2009, 6.750%,
2/01/38
30 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 10,500 Duarte, California, Certificates of Participation, City of 10/09 at 101.00 A+ $ 9,769,200
Hope National Medical Center, Series 1999A, 5.250%, 4/01/31
2,860 Loma Linda, California, Hospital Revenue Bonds, Loma Linda 12/18 at 100.00 BBB 2,993,934
University Medical Center, Series 2008A, 8.250%, 12/01/38
2,570 Rancho Mirage Joint Powers Financing Authority, California, 7/17 at 100.00 A3 2,306,601
Revenue Bonds, Eisenhower Medical Center, Series 2007A,
5.000%, 7/01/38
3,000 Santa Clara County Financing Authority, California, Insured 8/17 at 100.00 A+ 3,027,330
Revenue Bonds, El Camino Hospital, Series 2007A, 5.750%,
2/01/41 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
88,321 Total Health Care 81,243,598
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 2.3% (1.5% OF TOTAL INVESTMENTS)
5,000 Contra Costa County, California, Multifamily Housing Revenue 12/09 at 102.00 N/R 4,262,000
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 237,526
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 9/13 at 100.00 A+ 1,522,416
Revenue Bonds, Rancho Feliz Mobile Home Park, Series
2003A, 5.750%, 9/15/38
1,120 Rohnert Park Finance Authority, California, Subordinate Lien 9/13 at 100.00 N/R 965,776
Revenue Bonds, Rancho Feliz Mobile Home Park, Series
2003B, 6.625%, 9/15/38
------------------------------------------------------------------------------------------------------------------------------------
8,165 Total Housing/Multifamily 6,987,718
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.7% (0.4% OF TOTAL INVESTMENTS)
1,670 California Housing Finance Agency, California, Home Mortgage 2/17 at 100.00 AA- 1,359,560
Revenue Bonds, Series 2008, Trust 3137, 13.653%, 8/01/37
(Alternative Minimum Tax) (IF)
655 California Housing Finance Agency, Home Mortgage Revenue 2/16 at 100.00 AA- 662,729
Bonds, Series 2006H, 5.750%, 8/01/30 - FGIC Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,325 Total Housing/Single Family 2,022,289
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.7% (1.1% OF TOTAL INVESTMENTS)
2,000 California Pollution Control Financing Authority, Solid Waste 1/16 at 102.00 BBB 1,843,520
Disposal Revenue Bonds, Waste Management Inc., Series
2002A, 5.000%, 1/01/22 (Alternative Minimum Tax)
5,120 California Statewide Communities Development Authority, No Opt. Call BB 3,329,536
Revenue Bonds, EnerTech Regional Biosolids Project, Series
2007A, 5.500%, 12/01/33 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
7,120 Total Industrials 5,173,056
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.2% (1.5% OF TOTAL INVESTMENTS)
8,500 Riverside County Public Financing Authority, California, 11/09 at 101.00 BBB- 6,974,845
Certificates of Participation, Air Force Village West,
Series 1999, 5.800%, 5/15/29
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 9.1% (6.1% OF TOTAL INVESTMENTS)
4,435 California, General Obligation Refunding Bonds, Series 2002, No Opt. Call A 5,132,005
6.000%, 4/01/16 - AMBAC Insured
3,425 Coast Community College District, Orange County, California, 8/18 at 100.00 AAA 2,748,117
General Obligation Bonds, Series 2006C, 0.000%, 8/01/31 -
FSA Insured
5,150 Hacienda La Puente Unified School District Facilities No Opt. Call AAA 5,579,974
Financing Authority, California, General Obligation
Revenue Bonds, Series 2007, 5.000%, 8/01/26 - FSA Insured
5,210 Oak Valley Hospital District, Stanislaus County, California, 7/14 at 101.00 A3 4,893,545
General Obligation Bonds, Series 2005, 5.000%, 7/01/35 -
FGIC Insured
575 Roseville Joint Union High School District, Placer County, 8/15 at 100.00 AA- 590,370
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 5,591,700
California, General Obligation Bonds, Series 2003E,
5.250%, 7/01/20 - FSA Insured
3,605 West Contra Costa Unified School District, Contra Costa 8/11 at 101.00 AAA 3,813,513
County, California, General Obligation Bonds, Series
2003B, 5.000%, 8/01/21 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
27,400 Total Tax Obligation/General 28,349,224
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 31
NAC | Nuveen California Dividend Advantage Municipal Fund (continued)
| Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 35.7% (23.7% OF TOTAL INVESTMENTS)
Beaumont Financing Authority, California, Local Agency
Revenue Bonds, Series 2004D:
$ 1,000 5.500%, 9/01/24 9/14 at 102.00 N/R $ 847,640
615 5.800%, 9/01/35 9/14 at 102.00 N/R 499,429
1,990 Borrego Water District, California, Community Facilities 8/17 at 102.00 N/R 1,608,378
District 2007-1 Montesoro, Special Tax Bonds, Series 2007,
5.750%, 8/01/25
1,990 Brentwood Infrastructure Financing Authority, California, 9/12 at 100.00 AAA 2,024,009
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 1,171,871
1,165 5.375%, 11/01/19 - FSA Insured 11/11 at 100.00 AAA 1,229,937
2,000 Capistrano Unified School District, Orange County, 9/13 at 100.00 N/R 1,745,120
California, Special Tax Bonds, Community Facilities
District 90-2 - Talega, Series 2003, 6.000%, 9/01/33
710 Capistrano Unified School District, Orange County, 9/15 at 100.00 A 656,963
California, Special Tax Bonds, Community Facilities
District, Series 2005, 5.000%, 9/01/24 - FGIC Insured
1,225 Chino Redevelopment Agency, California, Merged Chino 9/16 at 101.00 BBB 998,779
Redevelopment Project Area Tax Allocation Bonds, Series
2006, 5.000%, 9/01/38 - AMBAC Insured
3,490 Fontana, California, Senior Special Tax Refunding Bonds, 9/09 at 101.00 A 3,501,552
Heritage Village Community Facilities District 2, Series
1998A, 5.250%, 9/01/17 - NPFG Insured
1,125 Fontana, California, Special Tax Bonds, Sierra Community 9/14 at 100.00 N/R 876,859
Facilities District 22, Series 2004, 6.000%, 9/01/34
3,980 Garden Grove, California, Certificates of Participation, 3/12 at 101.00 A 4,081,211
Financing Project, Series 2002A, 5.500%, 3/01/22 - AMBAC
Insured
Golden State Tobacco Securitization Corporation, California,
Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A:
37,695 5.000%, 6/01/35 - FGIC Insured 6/15 at 100.00 A- 33,455,440
4,395 5.000%, 6/01/38 - FGIC Insured 6/15 at 100.00 A- 3,877,709
2,850 Hesperia Community Redevelopment Agency, California, Tax 9/15 at 100.00 Baa1 2,149,869
Allocation Bonds, Series 2005A, 5.000%, 9/01/35 - SYNCORA
GTY Insured
4,500 Inglewood Redevelopment Agency, California, Tax Allocation No Opt. Call N/R 4,445,280
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:
325 5.000%, 9/01/26 9/16 at 100.00 N/R 284,219
755 5.125%, 9/01/36 9/16 at 100.00 N/R 621,622
675 Lammersville School District, San Joaquin County, California, 9/16 at 100.00 N/R 453,998
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, 9/13 at 102.00 N/R 1,716,500
Special Tax Bonds, Community Facilities District 1 of
Sycamore Creek, Series 2003, 6.500%, 9/01/24
1,000 Lindsay Redevelopment Agency, California, Project 1 Tax 8/17 at 100.00 BBB+ 818,880
Allocation Bonds, Series 2007, 5.000%, 8/01/37 - RAAI
Insured
1,290 Los Angeles Community Redevelopment Agency, California, Lease 9/15 at 100.00 A2 1,089,998
Revenue Bonds, Manchester Social Services Project, Series
2005, 5.000%, 9/01/37 - AMBAC Insured
1,750 Los Angeles County Metropolitan Transportation Authority, 1/10 at 100.00 A1 1,751,085
California, Proposition C Second Senior Lien Sales Tax
Revenue Refunding Bonds, Series 1998A, 5.000%, 7/01/23 -
AMBAC Insured
1,530 Moreno Valley Unified School District, Riverside County, 3/14 at 100.00 AAA 1,577,629
California, Certificates of Participation, Series 2005,
5.000%, 3/01/24 - FSA Insured
3,500 Murrieta Redevelopment Agency, California, Tax Allocation 8/17 at 100.00 A 2,866,080
Bonds, Series 2007A, 5.000%, 8/01/37 - NPFG Insured
9,200 Norco Redevelopment Agency, California, Tax Allocation 3/11 at 102.00 A 9,024,280
Refunding Bonds, Project Area 1, Series 2001, 5.000%,
3/01/19 - NPFG Insured
North Natomas Community Facilities District 4, Sacramento,
California, Special Tax Bonds, Series 2006D:
545 5.000%, 9/01/26 9/14 at 102.00 N/R 422,931
250 5.000%, 9/01/33 9/14 at 102.00 N/R 181,448
32 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 3,290 Oakland Redevelopment Agency, California, Subordinate Lien 3/13 at 100.00 A $ 3,365,506
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 A 5,477,080
Refunding Bonds, Convention Center Project, Series 2001A,
5.000%, 11/01/22 - NPFG Insured
1,000 Palmdale Community Redevelopment Agency, California, Tax 12/14 at 100.00 A- 924,420
Allocation Bonds, Merged Redevelopment Project Areas,
Series 2004, 5.000%, 12/01/24 - AMBAC Insured
1,570 Poway Redevelopment Agency, California, Tax Allocation 12/10 at 102.00 AA 1,495,645
Refunding Bonds, Paguay Redevelopment Project, Series
2000, 5.750%, 6/15/33 - NPFG Insured
620 Rialto Redevelopment Agency, California, Tax Allocation 9/15 at 100.00 A- 514,135
Bonds, Merged Project Area, Series 2005A, 5.000%,
9/01/35 - SYNCORA GTY Insured
1,860 Riverside Redevelopment Agency, California, Tax Allocation 8/13 at 100.00 A 1,796,797
Refunding Bonds, Merged Project Areas, Series 2003,
5.250%, 8/01/22 - NPFG Insured
770 Roseville, California, Certificates of Participation, Public 8/13 at 100.00 AA- 720,943
Facilities, Series 2003A, 5.000%, 8/01/25 - AMBAC Insured
2,500 Sacramento City Financing Authority, California, Lease No Opt. Call A 2,518,150
Revenue Refunding Bonds, Series 1993A, 5.400%, 11/01/20 -
AMBAC Insured
1,150 Sacramento, California, Special Tax Bonds, North Natomas 9/14 at 100.00 N/R 928,499
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 AA+ 2,868,315
Refunding Bonds, Civic Center Project, Series 2002B,
5.250%, 6/01/19 - AMBAC Insured
1,000 Washington Unified School District, Yolo County, California, 8/17 at 100.00 BBB+ 892,000
Certificates of Participation, Series 2007, 5.125%,
8/01/37 - AMBAC Insured
600 West Patterson Financing Authority, California, Special Tax 9/14 at 105.00 N/R 610,068
Bonds, Community Facilities District 01-1, Refunding
Series 2009A, 8.625%, 9/01/39
2,810 West Patterson Financing Authority, California, Special Tax 9/13 at 103.00 N/R 2,321,257
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 1,436,400
Bonds, Community Facilities District 01-1, Series 2004B,
6.000%, 9/01/39
1,350 West Patterson Financing Authority, California, Special Tax 9/13 at 103.00 N/R 987,539
Bonds, Community Facilities District 2001-1, Series 2004A,
6.125%, 9/01/39
------------------------------------------------------------------------------------------------------------------------------------
121,475 Total Tax Obligation/Limited 110,835,470
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 20.6% (13.6% OF TOTAL INVESTMENTS)
1,430 Bay Area Toll Authority, California, Revenue Bonds, San 4/16 at 100.00 AA 1,459,673
Francisco Bay Area Toll Bridge, Series 2006F, 5.000%,
4/01/31 (UB)
830 Bay Area Toll Authority, California, Revenue Bonds, San 4/18 at 100.00 AA 940,816
Francisco Bay Area Toll Bridge, Series 2008, Trust 3211,
13.298%, 4/01/39 (IF)
8,150 Foothill/Eastern Transportation Corridor Agency, California, 1/10 at 101.00 BBB- 6,487,889
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 AA 8,691,261
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 102,238
International Airport Revenue Bonds, Series 2006, 5.450%,
7/01/20 (Alternative Minimum Tax)
22,825 Port of Oakland, California, Revenue Bonds, Series 2000K, 5/10 at 100.00 A1 22,715,211
5.750%, 11/01/29 - FGIC Insured
23,275 San Francisco Airports Commission, California, Revenue Bonds, 5/10 at 101.00 AAA 23,467,018
San Francisco International Airport, Second Series 2000,
Issue 24A, 5.750%, 5/01/30 - FSA Insured (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
65,145 Total Transportation 63,864,106
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 27.8% (18.4% OF TOTAL INVESTMENTS) (4)
9,750 California Department of Water Resources, Power Supply 5/12 at 101.00 Aaa 10,877,198
Revenue Bonds, Series 2002A, 5.125%, 5/01/18 (Pre-refunded
5/01/12)
115 California Department of Water Resources, Water System 12/11 at 100.00 AAA 126,355
Revenue Bonds, Central Valley Project, Series 2001W,
5.250%, 12/01/22 (Pre-refunded 12/01/11) - FSA Insured
1,500 California Health Facilities Financing Authority, Revenue 12/09 at 101.00 N/R (4) 1,536,585
Bonds, Cedars-Sinai Medical Center, Series 1999A, 6.125%,
12/01/30 (Pre-refunded 12/01/09)
Nuveen Investments 33
NAC | Nuveen California Dividend Advantage Municipal Fund (continued)
| Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 8,400 California Health Facilities Financing Authority, Revenue 10/09 at 100.50 AAA $ 8,512,140
Bonds, Kaiser Permanente System, Series 1998B, 5.250%,
10/01/14 (ETM)
715 California Statewide Community Development Authority, Revenue 10/15 at 100.00 N/R (4) 792,463
Bonds, Thomas Jefferson School of Law, Series 2005A,
4.875%, 10/01/31 (Pre-refunded 10/01/15)
4,370 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 4,881,946
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.250%, 6/01/33 (Pre-refunded 6/01/13)
1,940 Lincoln, California, Special Tax Bonds, Lincoln Crossing 9/13 at 102.00 N/R (4) 2,345,421
Community Facilities District 03-1, Series 2003A, 6.500%,
9/01/25 (Pre-refunded 9/01/13)
1,335 Lincoln, California, Special Tax Bonds, Lincoln Crossing 9/13 at 102.00 N/R (4) 1,588,209
Community Facilities District 03-1, Series 2004, 6.000%,
9/01/34 (Pre-refunded 9/01/13)
10,845 Los Angeles Unified School District, California, General 7/12 at 100.00 AA- (4) 12,026,346
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 2,694,050
4,500 5.375%, 6/01/41 (Pre-refunded 6/01/11) 6/11 at 100.00 AAA 4,859,055
5,840 Orange County Water District, California, Revenue 2/10 at 101.00 AAA 5,916,913
Certificates of Participation, Series 1999A, 5.375%,
8/15/29 (ETM)
175 Port of Oakland, California, Revenue Bonds, Series 2000K, 5/10 at 100.00 A1 (4) 180,369
5.750%, 11/01/29 (Pre-refunded 5/01/10) - FGIC Insured
6,530 Poway Redevelopment Agency, California, Tax Allocation 12/10 at 102.00 N/R (4) 7,097,457
Refunding Bonds, Paguay Redevelopment Project, Series
2000, 5.750%, 6/15/33 (Pre-refunded 12/15/10) - MBIA
Insured
4,000 Puerto Rico, General Obligation and Public Improvement Bonds, 7/10 at 100.00 A (4) 4,157,040
Series 2000, 5.750%, 7/01/16 (Pre-refunded 7/01/10) - NPFG
Insured
2,860 Tobacco Securitization Authority of Southern California, 6/12 at 100.00 AAA 3,160,472
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, San 1/10 at 101.00 Aa1 (4) 718,179
Diego and Sacramento Campus Projects, Series 2002A,
5.250%, 1/01/22 (Pre-refunded 1/01/10)
11,305 University of California, Revenue Bonds, Multi-Purpose 9/10 at 101.00 AA (4) 11,932,993
Projects, Series 2002O, 5.000%, 9/01/21 (Pre-refunded
9/01/10) - FGIC Insured
2,500 Whittier, California, Health Facility Revenue Bonds, 6/12 at 101.00 N/R (4) 2,827,025
Presbyterian Intercommunity Hospital, Series 2002, 5.600%,
6/01/22 (Pre-refunded 6/01/12)
------------------------------------------------------------------------------------------------------------------------------------
79,880 Total U.S. Guaranteed 86,230,216
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 4.5% (2.9% OF TOTAL INVESTMENTS)
3,630 Imperial Irrigation District, California, Certificates of 11/13 at 100.00 AAA 3,777,596
Participation, Electric System Revenue Bonds, Series 2003,
5.250%, 11/01/23 - FSA Insured
3,775 Long Beach Bond Finance Authority, California, Natural Gas No Opt. Call A 3,379,682
Purchase Revenue Bonds, Series 2007A, 5.000%, 11/15/35
5,500 Los Angeles Department of Water and Power, California, Power 7/15 at 100.00 AAA 5,594,215
System Revenue Bonds, Series 2005A-1, 5.000%, 7/01/31 -
FSA Insured (UB)
1,270 Merced Irrigation District, California, Electric System 9/15 at 100.00 N/R 1,065,809
Revenue Bonds, Series 2005, 5.125%, 9/01/31 - SYNCORA GTY
Insured
------------------------------------------------------------------------------------------------------------------------------------
14,175 Total Utilities 13,817,302
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 6.0% (4.0% OF TOTAL INVESTMENTS)
875 Healdsburg Public Financing Authority, California, Wastewater 4/16 at 100.00 AA- 836,561
Revenue Bonds, Series 2006, 5.000%, 4/01/36 - NPFG Insured
2,500 Indio Water Authority, California, Water Revenue Bonds, 4/16 at 100.00 A+ 2,410,350
Series 2006, 5.000%, 4/01/31 - AMBAC Insured
835 Marina Coast Water District, California, Enterprise 6/16 at 100.00 A+ 804,907
Certificate of Participation, Series 2006, 5.000%,
6/01/31 - NPFG Insured
8,250 Pico Rivera Water Authority, California, Revenue Bonds, 12/11 at 102.00 N/R 6,951,698
Series 2001A, 6.250%, 12/01/32
34 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 2,250 Sacramento County Sanitation District Financing Authority, 6/16 at 100.00 AA $ 2,278,103
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 AA- 5,438,524
California, Water Revenue Bonds, Series 2002A, 5.000%,
11/01/18 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
19,825 Total Water and Sewer 18,720,143
------------------------------------------------------------------------------------------------------------------------------------
$ 497,641 Total Long-Term Investments (cost $477,022,793) - 150.3% 466,148,682
------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.6% (0.4% OF TOTAL INVESTMENTS)
WATER AND SEWER - 0.6% (0.4% OF TOTAL INVESTMENTS)
$ 1,900 Metropolitan Water District of Southern California, Water 9/09 at 100.00 A-1 1,900,000
Revenue Bonds, Variable Rate Demand Obligations, Series
2008A-1, 0.240%, 7/01/37 (5)
===============---------------------------------------------------------------------------------------------------------------------
Total Short-Term Investments (cost $1,900,000) 1,900,000
------------------------------------------------------------------------------------------------------------------
Total Investments (cost $478,922,793) - 150.9% 468,048,682
------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (9.2)% (28,545,000)
------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.0% 6,234,584
------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred Shares, at Liquidation Value - (43.7)% (6) (135,525,000)
------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 310,213,266
==================================================================================================================
(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 Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's 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) Auction Rate Preferred Shares, at Liquidation Value as a percentage of
Total Investments is 29.0%.
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 Notes to
Financial Statements, Footnote 1 - Inverse Floating Rate Securities for
more information.
See accompanying notes to financial statements.
Nuveen Investments 35
NVX | Nuveen California Dividend Advantage Municipal Fund 2
| Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 7.0% (4.7% OF TOTAL INVESTMENTS)
$ 615 California County Tobacco Securitization Agency, Tobacco 6/15 at 100.00 BBB $ 561,839
Settlement Asset-Backed Bonds, Sonoma County Tobacco
Securitization Corporation, Series 2005, 4.250%, 6/01/21
4,515 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 Baa3 3,591,141
Settlement Asset-Backed Bonds, Stanislaus County Tobacco
Funding Corporation, Series 2002A, 5.500%, 6/01/33
4,000 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 3,120,040
Enhanced Tobacco Settlement Asset-Backed Bonds, Series
2007A-1, 5.750%, 6/01/47
13,480 Golden State Tobacco Securitization Corporation, California, 6/22 at 100.00 BBB 7,101,264
Enhanced Tobacco Settlement Asset-Backed Bonds, Series
2007A-2, 0.000%, 6/01/37
------------------------------------------------------------------------------------------------------------------------------------
22,610 Total Consumer Staples 14,374,284
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 8.7% (5.8% OF TOTAL
INVESTMENTS)
2,000 California Educational Facilities Authority, Revenue Bonds, 6/11 at 101.00 AAA 2,058,320
Stanford University, Series 2001Q, 5.250%, 12/01/32
2,745 California Educational Facilities Authority, Revenue Bonds, 10/18 at 100.00 AA+ 3,010,332
University of Southern California, Tender Option Bond
Trust 09-11B, 16.819%, 10/01/38 (IF)
California Educational Facilities Authority, Revenue Bonds,
University of the Pacific, Series 2006:
125 5.000%, 11/01/21 11/15 at 100.00 A2 125,915
165 5.000%, 11/01/25 11/15 at 100.00 A2 159,832
3,750 California Educational Facilities Authority, Student Loan 9/09 at 101.00 Baa1 3,694,838
Revenue Bonds, Cal Loan Program, Series 2001A, 5.400%,
3/01/21 - NPFG Insured (Alternative Minimum Tax)
2,945 California State Public Works Board, Lease Revenue Bonds, 3/18 at 100.00 Aa2 2,912,900
University of California Regents, Trust 1065, 9.041%,
3/01/33 (IF)
620 California Statewide Community Development Authority, Revenue 10/13 at 100.00 N/R 459,532
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 BBB 2,656,620
Revenue Refunding Bonds, Long Beach Aquarium of the South
Pacific, Series 2001, 5.250%, 11/01/30 - AMBAC Insured
2,680 University of California, Revenue Bonds, Multi-Purpose 5/13 at 100.00 Aa1 2,702,324
Projects, Series 2003A, 5.000%, 5/15/33 - AMBAC Insured
(UB)
------------------------------------------------------------------------------------------------------------------------------------
18,030 Total Education and Civic Organizations 17,780,613
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 18.9% (12.5% OF TOTAL INVESTMENTS)
2,000 California Health Facilities Financing Authority, Revenue 4/12 at 100.00 BBB+ 1,975,580
Bonds, Casa Colina Inc., Series 2001, 6.000%, 4/01/22
415 California Health Facilities Financing Authority, Revenue 4/16 at 100.00 A+ 369,562
Bonds, Kaiser Permanante System, Series 2006, 5.000%,
4/01/37
9,260 California Health Facilities Financing Authority, Revenue 11/16 at 100.00 Aa3 8,357,520
Bonds, Sutter Health, Series 2007A, 5.250%, 11/15/46 (UB)
500 California Infrastructure Economic Development Bank, Revenue 8/11 at 102.00 A+ 502,940
Bonds, Kaiser Hospital Assistance LLC, Series 2001A,
5.550%, 8/01/31
2,520 California Statewide Communities Development Authority, 3/15 at 100.00 A 2,204,874
Revenue Bonds, Adventist Health System West, Series 2005A,
5.000%, 3/01/35
California Statewide Communities Development Authority,
Revenue Bonds, Saint Joseph Health System, Trust 2554:
1,325 18.101%, 7/01/47 - FSA Insured (IF) 7/18 at 100.00 AAA 1,326,484
998 18.134%, 7/01/47 - FSA Insured (IF) 7/18 at 100.00 AAA 998,617
California Statewide Communities Development Authority,
Revenue Bonds, ValleyCare Health System, Series 2007A:
900 4.800%, 7/15/17 No Opt. Call N/R 751,959
2,225 5.125%, 7/15/31 7/17 at 100.00 N/R 1,467,454
2,185 California Statewide Community Development Authority, Health No Opt. Call A+ 2,328,227
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 2,665,400
Hospital Revenue Bonds, Monterey Peninsula Hospital,
Series 2003B, 5.250%, 6/01/18 - FSA Insured
36 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 1,755 California Statewide Community Development Authority, Revenue 3/16 at 100.00 A+ $ 1,564,477
Bonds, Kaiser Permanante System, Series 2006, 5.000%,
3/01/41
425 California Statewide Community Development Authority, Revenue 8/16 at 100.00 A+ 411,545
Bonds, Kaiser Permanente System, Series 2001C, 5.250%,
8/01/31
1,000 California Statewide Community Development Authority, Revenue 8/18 at 100.00 AAA 998,460
Bonds, Sutter Health, Series 2004D, 5.050%, 8/15/38 - FSA
Insured
6,020 California Statewide Community Development Authority, Revenue 11/15 at 100.00 Aa3 5,215,780
Bonds, Sutter Health, Series 2005A, 5.000%, 11/15/43
2,000 Loma Linda, California, Hospital Revenue Bonds, Loma Linda 12/18 at 100.00 BBB 2,093,660
University Medical Center, Series 2008A, 8.250%, 12/01/38
5,785 Rancho Mirage Joint Powers Financing Authority, California, 7/17 at 100.00 A3 5,192,095
Revenue Bonds, Eisenhower Medical Center, Series 2007A,
5.000%, 7/01/38
------------------------------------------------------------------------------------------------------------------------------------
41,813 Total Health Care 38,424,634
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 5.2% (3.5% OF TOTAL INVESTMENTS)
5,962 California Statewide Community Development Authority, 6/11 at 102.00 AAA 6,189,450
Multifamily Housing Revenue Refunding Bonds, Claremont
Village Apartments, Series 2001D, 5.500%, 6/01/31
(Mandatory put 6/01/16) (Alternative Minimum Tax)
205 Independent Cities Lease Finance Authority, California, Mobile 5/16 at 100.00 N/R 152,165
Home Park Revenue Bonds, San Juan Mobile Estates, Series
2006B, 5.850%, 5/15/41
1,055 Rohnert Park Finance Authority, California, Senior Lien 9/13 at 100.00 A+ 931,101
Revenue 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 603,610
Revenue Bonds, Rancho Feliz Mobile Home Park, Series 2003B,
6.625%, 9/15/38
3,045 Yucaipa Redevelopment Agency, California, Mobile Home Park 5/11 at 102.00 N/R 2,731,395
Revenue Bonds, Rancho del Sol and Grandview, Series 2001A,
6.750%, 5/15/36
------------------------------------------------------------------------------------------------------------------------------------
10,967 Total Housing/Multifamily 10,607,721
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 1.4% (0.9% OF TOTAL INVESTMENTS)
405 California Housing Finance Agency, Home Mortgage Revenue 2/16 at 100.00 AA- 409,779
Bonds, Series 2006H, 5.750%, 8/01/30 - FGIC Insured
(Alternative Minimum Tax)
3,290 California Housing Finance Agency, Home Mortgage Revenue 2/16 at 100.00 AA- 2,061,744
Bonds, Series 2007M, Trust 1021, 7.286%, 8/01/31
(Alternative Minimum Tax) (IF)
440 California Rural Home Mortgage Finance Authority, 6/11 at 102.00 AAA 443,753
Mortgage-Backed Securities Program Single Family Mortgage
Revenue Bonds, Series 2001A, 5.650%, 12/01/31 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
4,135 Total Housing/Single Family 2,915,276
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.6% (1.0% OF TOTAL INVESTMENTS)
1,250 California Pollution Control Financing Authority, Solid Waste 1/16 at 102.00 BBB 1,152,200
Disposal Revenue Bonds, Waste Management Inc., Series
2002A, 5.000%, 1/01/22 (Alternative Minimum Tax)
3,175 California Statewide Communities Development Authority, No Opt. Call BB 2,064,703
Revenue Bonds, EnerTech Regional Biosolids Project, Series
2007A, 5.500%, 12/01/33 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
4,425 Total Industrials 3,216,903
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.1% (1.4% OF TOTAL INVESTMENTS)
1,550 California Health Facilities Financing Authority, Cal-Mortgage 1/13 at 100.00 A 1,513,219
Insured Revenue Bonds, Northern California Retired Officers
Community Corporation - Paradise Valley Estates, Series
2002, 5.125%, 1/01/22
3,750 California Statewide Communities Development Authority, 12/17 at 100.00 Ba1 2,706,375
Revenue Bonds, Inland Regional Center Project, Series 2007,
5.375%, 12/01/37
------------------------------------------------------------------------------------------------------------------------------------
5,300 Total Long-Term Care 4,219,594
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 10.2% (6.8% OF TOTAL INVESTMENTS)
10,000 California State, General Obligation Bonds, Series 2006CD, 12/15 at 100.00 AA- 8,035,200
4.600%, 12/01/32 (Alternative Minimum Tax)
3,615 Colton Joint Unified School District, San Bernardino County, 8/12 at 102.00 A 3,734,259
California, General Obligation Bonds, Series 2002A, 5.500%,
8/01/22 - FGIC Insured
Nuveen Investments 37
NVX | Nuveen California Dividend Advantage Municipal Fund 2 (continued)
| Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
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 AA $ 3,211,654
3,300 5.000%, 8/01/22 - FGIC Insured 8/12 at 100.00 AA 3,436,686
2,000 Puerto Rico, General Obligation and Public Improvement Bonds, No Opt. Call A 2,020,980
Series 2001A, 5.500%, 7/01/20 - NPFG Insured
355 Roseville Joint Union High School District, Placer County, 8/15 at 100.00 AA- 364,489
California, General Obligation Bonds, Series 2006B,
5.000%, 8/01/27 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
22,275 Total Tax Obligation/General 20,803,268
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 22.9% (15.2% 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 550,966
385 5.800%, 9/01/35 9/14 at 102.00 N/R 312,651
1,240 Borrego Water District, California, Community Facilities 8/17 at 102.00 N/R 1,002,205
District 2007-1 Montesoro, Special Tax Bonds, Series 2007,
5.750%, 8/01/25
4,900 California State Public Works Board, Lease Revenue Bonds, 12/13 at 100.00 A- 5,132,799
Department of Corrections, Series 2003C, 5.500%, 6/01/16
2,105 California, Economic Recovery Revenue Bonds, Series 2004A, 7/14 at 100.00 A 2,292,029
5.000%, 7/01/15
1,200 Capistrano Unified School District, Orange County, 9/13 at 100.00 N/R 1,047,072
California, Special Tax Bonds, Community Facilities
District 90-2 - Talega, Series 2003, 6.000%, 9/01/33
435 Capistrano Unified School District, Orange County, 9/15 at 100.00 A 402,506
California, Special Tax Bonds, Community Facilities
District, Series 2005, 5.000%, 9/01/24 - FGIC Insured
4,845 Encinitas Public Financing Authority, California, Lease 10/09 at 101.00 AA+ 4,883,857
Revenue Bonds, Acquisition Project, Series 2001A, 5.250%,
4/01/31 - NPFG Insured
750 Fontana, California, Special Tax Bonds, Sierra Community 9/14 at 100.00 N/R 584,573
Facilities District 22, Series 2004, 6.000%, 9/01/34
1,785 Hawthorne Community Redevelopment Agency, California, Project 9/16 at 100.00 A- 1,526,853
Area 2 Tax Allocation Bonds, Series 2006, 5.250%,
9/01/36 - SYNCORA GTY Insured
1,800 Hesperia Unified School District, San Bernardino County, 2/17 at 100.00 BBB+ 1,499,454
California, Certificates of Participation, Capital
Improvement, Series 2007, 5.000%, 2/01/41 - AMBAC Insured
Irvine, California, Unified School District, Community
Facilities District Special Tax Bonds, Series 2006A:
205 5.000%, 9/01/26 9/16 at 100.00 N/R 179,277
470 5.125%, 9/01/36 9/16 at 100.00 N/R 386,970
2,000 Lake Elsinore Public Finance Authority, California, Local 10/13 at 102.00 N/R 1,780,160
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 279,125
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 1,085,686
Special Tax Bonds, Community Facilities District 1 of
Sycamore Creek, Series 2003, 6.500%, 9/01/24
800 Los Angeles Community Redevelopment Agency, California, Lease 9/15 at 100.00 A2 675,968
Revenue Bonds, Manchester Social Services Project, Series
2005, 5.000%, 9/01/37 - AMBAC Insured
2,795 Los Angeles County Metropolitan Transportation Authority, 1/10 at 100.00 A1 2,796,733
California, Proposition C Second Senior Lien Sales Tax
Revenue Refunding Bonds, Series 1998A, 5.000%, 7/01/23 -
AMBAC Insured
495 North Natomas Community Facilities District 4, Sacramento, 9/14 at 102.00 N/R 359,266
California, Special Tax Bonds, Series 2006D, 5.000%,
9/01/33
2,000 Orange County, California, Special Tax Bonds, Community 8/11 at 101.00 N/R 1,766,140
Facilities District 02-1 of Ladera Ranch, Series 2003A,
5.550%, 8/15/33
385 Rialto Redevelopment Agency, California, Tax Allocation 9/15 at 100.00 A- 319,261
Bonds, Merged Project Area, Series 2005A, 5.000%, 9/01/35
- SYNCORA GTY Insured
475 Roseville, California, Certificates of Participation, Public 8/13 at 100.00 AA- 444,738
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 565,173
Community Facilities District 4, Series 2003C, 6.000%,
9/01/33
38 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
San Buenaventura Redevelopment Agency, California, Merged
Project Areas Tax Allocation Bonds, Series 2008:
$ 1,000 7.750%, 8/01/28 8/16 at 102.00 A $ 1,096,190
1,325 8.000%, 8/01/38 8/16 at 102.00 A 1,439,626
1,530 San Marcos Public Facilities Authority, California, Tax 8/15 at 100.00 A- 1,269,013
Allocation Bonds, Project Areas 2 and 3, Series 2005C,
5.000%, 8/01/35 - AMBAC Insured
825 San Mateo Union High School District, San Mateo County, 12/17 at 100.00 N/R 718,435
California, Certificates of Participation, Phase 1, Series
2007A, 5.000%, 12/15/30 - AMBAC Insured
415 West Patterson Financing Authority, California, Special Tax 9/14 at 105.00 N/R 421,964
Bonds, Community Facilities District 01-1, Refunding
Series 2009A, 8.625%, 9/01/39
1,930 West Patterson Financing Authority, California, Special Tax 9/13 at 103.00 N/R 1,601,012
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 359,100
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 621,784
Bonds, Community Facilities District 2001-1, Series 2004A,
6.125%, 9/01/39
10,000 Western Placer Unified School District, Placer County, 8/18 at 100.00 AAA 9,343,299
California, Certificates of Participation, Series 2008,
5.000%, 8/01/47 - AGC Insured
------------------------------------------------------------------------------------------------------------------------------------
50,475 Total Tax Obligation/Limited 46,743,885
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 11.4% (7.5% OF TOTAL INVESTMENTS)
1,930 Bay Area Toll Authority, California, Revenue Bonds, San 4/16 at 100.00 AA 1,970,048
Francisco Bay Area Toll Bridge, Series 2006F, 5.000%,
4/01/31 (UB)
1,430 Bay Area Toll Authority, California, Revenue Bonds, San 4/18 at 100.00 AA 1,620,924
Francisco Bay Area Toll Bridge, Series 2008, Trust 3211,
13.298%, 4/01/39 (IF)
7,000 Foothill/Eastern Transportation Corridor Agency, California, 1/14 at 101.00 BBB- 5,972,260
Toll Road Revenue Refunding Bonds, Series 1999, 5.875%,
1/15/27
5,585 Port of Oakland, California, Revenue Bonds, Series 2002N, 11/12 at 100.00 A1 5,589,133
5.000%, 11/01/16 - NPFG Insured (Alternative Minimum Tax)
San Francisco Airports Commission, California, Revenue Bonds,
San Francisco International Airport, Second Series 2003, Issue
29A:
2,430 5.250%, 5/01/18 - FGIC Insured (Alternative Minimum Tax) 5/13 at 100.00 A1 2,430,608
2,555 5.250%, 5/01/19 - FGIC Insured (Alternative Minimum Tax) 5/13 at 100.00 A1 2,538,955
1,000 San Francisco Airports Commission, California, Revenue Bonds, 5/13 at 100.00 A1 1,042,810
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 A1 2,006,260
Refunding Bonds, San Francisco International Airport,
Second Series 2002, Issue 28A, 5.250%, 5/01/17 - NPFG
Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
23,930 Total Transportation 23,170,998
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 42.2% (28.0% OF TOTAL INVESTMENTS) (4)
9,000 Anitoch Area Public Facilities Financing Agency, California, 8/11 at 100.00 A (4) 9,770,129
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 6,693,660
Revenue Bonds, Series 2002A, 5.125%, 5/01/18 (Pre-refunded
5/01/12)
450 California Statewide Community Development Authority, Revenue 10/15 at 100.00 N/R (4) 498,753
Bonds, Thomas Jefferson School of Law, Series 2005A,
4.875%, 10/01/31 (Pre-refunded 10/01/15)
4,000 Daly City Housing Development Finance Agency, California, 12/13 at 102.00 N/R (4) 4,758,080
Mobile Home Park Revenue Bonds, Franciscan Mobile Home
Park Project, Series 2002A, 5.850%, 12/15/32 (Pre-refunded
12/15/13)
4,900 East Bay Municipal Utility District, Alameda and Contra Costa 6/11 at 100.00 AAA 5,265,344
Counties, California, Water System Subordinated Revenue
Bonds, Series 2001, 5.000%, 6/01/26 (Pre-refunded
6/01/11) - MBIA Insured
2,690 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 3,005,134
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.250%, 6/01/33 (Pre-refunded 6/01/13)
1,170 Lincoln, California, Special Tax Bonds, Lincoln Crossing 9/13 at 102.00 N/R (4) 1,414,507
Community Facilities District 03-1, Series 2003A, 6.500%,
9/01/25 (Pre-refunded 9/01/13)
Nuveen Investments 39
NVX | Nuveen California Dividend Advantage Municipal Fund 2 (continued)
| Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 885 Lincoln, California, Special Tax Bonds, Lincoln Crossing 9/13 at 102.00 N/R (4) $ 1,052,858
Community Facilities District 03-1, Series 2004, 6.000%,
9/01/34 (Pre-refunded 9/01/13)
1,530 Los Angeles Unified School District, California, General 7/10 at 100.00 AA- (4) 1,594,107
Obligation Bonds, Series 2000D, 5.375%, 7/01/25
(Pre-refunded 7/01/10) - FGIC Insured
9,510 Los Angeles Unified School District, California, General 7/12 at 100.00 AA- (4) 10,545,923
Obligation Bonds, Series 2002E, 5.000%, 7/01/19
(Pre-refunded 7/01/12) - MBIA Insured
3,000 Northern California Tobacco Securitization Authority, Tobacco 6/11 at 100.00 AAA 3,239,370
Settlement Asset-Backed Bonds, Series 2001A, 5.375%,
6/01/41 (Pre-refunded 6/01/11)
2,000 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call AAA 2,442,340
Appropriation Bonds, Series 2002E, 6.000%, 8/01/26 (ETM)
6,000 Riverside County Redevelopment Agency, California, Tax 10/11 at 102.00 A- (4) 6,670,500
Allocation Bonds, Jurupa Valley Project Area, Series 2001,
5.250%, 10/01/35 (Pre-refunded 10/01/11) - AMBAC Insured
12,090 Santa Clara Valley Transportation Authority, California, 6/11 at 100.00 AAA 12,991,428
Sales Tax Revenue Bonds, Series 2001A, 5.000%, 6/01/25
(Pre-refunded 6/01/11) - MBIA Insured
4,050 Santa Rosa High School District, Sonoma County, California, 5/11 at 101.00 A+ (4) 4,399,232
General Obligation Bonds, Series 2001, 5.300%, 5/01/26
(Pre-refunded 5/01/11) - FGIC Insured
6,200 Southwestern Community College District, San Diego County, 8/11 at 101.00 AA- (4) 6,806,360
California, General Obligation Bonds, Series 2001, 5.375%,
8/01/25 (Pre-refunded 8/01/11) - AMBAC Insured
2,800 Tobacco Securitization Authority of Southern California, 6/12 at 100.00 AAA 3,112,984
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 N/R (4) 1,696,215
Presbyterian Intercommunity Hospital, Series 2002, 5.600%,
6/01/22 (Pre-refunded 6/01/12)
------------------------------------------------------------------------------------------------------------------------------------
77,775 Total U.S. Guaranteed 85,956,924
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 8.1% (5.4% OF TOTAL INVESTMENTS)
5,000 Anaheim Public Finance Authority, California, Second Lien 10/14 at 100.00 A+ 5,274,850
Electric Distribution Revenue Bonds, Series 2004, 5.250%,
10/01/21 - NPFG Insured
2,355 Long Beach Bond Finance Authority, California, Natural Gas No Opt. Call A 2,108,384
Purchase Revenue Bonds, Series 2007A, 5.000%, 11/15/35
1,000 Los Angeles Department of Water and Power, California, Power 7/13 at 100.00 AA- 1,033,330
System Revenue Bonds, Series 2003A-2, 5.000%, 7/01/23 -
NPFG Insured
500 Los Angeles Department of Water and Power, California, Power 7/15 at 100.00 AAA 508,565
System Revenue Bonds, Series 2008, 5.000%, 7/01/31 - FSA
Insured (UB)
Merced Irrigation District, California, Electric System
Revenue Bonds, Series 2005:
790 5.125%, 9/01/31 - SYNCORA GTY Insured 9/15 at 100.00 N/R 662,984
1,500 5.250%, 9/01/36 - SYNCORA GTY Insured 9/15 at 100.00 N/R 1,236,585
2,000 Santa Clara, California, Subordinate Electric Revenue Bonds, 7/13 at 100.00 A1 2,061,380
Series 2003A, 5.250%, 7/01/20 - NPFG Insured
4,000 Southern California Public Power Authority, Natural Gas No Opt. Call A 3,671,560
Project 1 Revenue Bonds, Series 2007A, 5.000%, 11/01/33
------------------------------------------------------------------------------------------------------------------------------------
17,145 Total Utilities 16,557,638
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 11.0% (7.3% OF TOTAL INVESTMENTS)
1,400 Castaic Lake Water Agency, California, Certificates of 8/16 at 100.00 AA- 1,342,012
Participation, Series 2006C, 5.000%, 8/01/36 - NPFG Insured
545 Healdsburg Public Financing Authority, California, Wastewater 4/16 at 100.00 AA- 521,058
Revenue Bonds, Series 2006, 5.000%, 4/01/36 - NPFG Insured
1,160 Metropolitan Water District of Southern California, 7/19 at 100.00 AAA 1,297,808
Waterworks Revenue Bonds, Tender Option Bond Trust 09-8B,
16.669%, 7/01/35 (IF)
1,500 Orange County Water District, California, Revenue 8/19 at 100.00 AAA 1,584,480
Certificates of Participation, Tender Option Bond Trust
11782-1, 17.291%, 8/15/41 (IF)
750 Sacramento County Sanitation District Financing Authority, 6/16 at 100.00 AA 759,368
California, Revenue Bonds, Series 2006, 5.000%, 12/01/31 -
FGIC Insured
1,700 San Buenaventura, California, Wastewater Revenue Certificates 3/14 at 100.00 AA 1,738,454
of Participation, Series 2004, 5.000%, 3/01/24 - NPFG
Insured
40 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 4,785 San Diego Public Facilities Financing Authority, California, 8/12 at 100.00 A+ $ 4,875,580
Subordinate Lien Water Revenue Bonds, Series 2002, 5.000%,
8/01/21 - NPFG Insured
10,000 San Francisco City and County Public Utilities Commission, 4/13 at 100.00 A+ 10,365,799
California, Clean Water Revenue Refunding Bonds, Series
2003A, 5.250%, 10/01/20 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
21,840 Total Water and Sewer 22,484,559
------------------------------------------------------------------------------------------------------------------------------------
$ 320,720 Total Investments (cost $312,967,337) - 150.7% 307,256,297
===============---------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (4.4)% (8,905,000)
------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.9% 3,759,248
------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred Shares, at Liquidation Value - (48.2)% (5) (98,275,000)
------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 203,835,545
==================================================================================================================
(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 Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's 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) Auction Rate Preferred Shares, at Liquidation Value as a percentage of
Total Investments is 32.0%.
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 Notes to
Financial Statements, Footnote 1 - Inverse Floating Rate Securities for
more information.
See accompanying notes to financial statements.
Nuveen Investments 41
NZH | Nuveen California Dividend Advantage Municipal Fund 3
| Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 7.5% (4.9% OF TOTAL INVESTMENTS)
$ 995 California County Tobacco Securitization Agency, Tobacco 6/15 at 100.00 BBB $ 908,992
Settlement Asset-Backed Bonds, Sonoma County Tobacco
Securitization Corporation, Series 2005, 4.250%, 6/01/21
7,500 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 5,850,075
Enhanced Tobacco Settlement Asset-Backed Bonds, Series
2007A-1, 5.750%, 6/01/47
29,660 Golden State Tobacco Securitization Corporation, California, 6/22 at 100.00 BBB 15,624,883
Enhanced Tobacco Settlement Asset-Backed Bonds, Series
2007A-2, 0.000%, 6/01/37
------------------------------------------------------------------------------------------------------------------------------------
38,155 Total Consumer Staples 22,383,950
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 4.5% (3.0% OF TOTAL
INVESTMENTS)
290 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 A3 268,891
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 201,464
270 5.000%, 11/01/25 11/15 at 100.00 A2 261,544
2,250 California Educational Facilities Authority, Student Loan 9/09 at 101.00 Baa1 2,216,903
Revenue Bonds, Cal Loan Program, Series 2001A, 5.400%,
3/01/21 - NPFG Insured (Alternative Minimum Tax)
6,000 California State University, Systemwide Revenue Bonds, Series 11/15 at 100.00 Aa3 6,069,420
2005C, 5.000%, 11/01/27 - NPFG Insured
620 California Statewide Community Development Authority, Revenue 10/13 at 100.00 N/R 459,532
Bonds, Notre Dame de Namur University, Series 2003,
6.500%, 10/01/23
4,000 University of California, Revenue Bonds, Multi-Purpose 5/13 at 100.00 Aa1 4,134,720
Projects, Series 2003A, 5.000%, 5/15/23 - AMBAC Insured
(UB)
------------------------------------------------------------------------------------------------------------------------------------
13,630 Total Education and Civic Organizations 13,612,474
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 27.7% (18.1% 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+ 3,951,160
2,000 6.125%, 4/01/32 4/12 at 100.00 BBB+ 1,858,200
670 California Health Facilities Financing Authority, Revenue 4/16 at 100.00 A+ 596,642
Bonds, Kaiser Permanante System, Series 2006, 5.000%,
4/01/37
2,000 California Health Facilities Financing Authority, Revenue 11/16 at 100.00 Aa3 1,736,400
Bonds, Sutter Health, Series 2007A, 5.000%, 11/15/42 -
NPFG Insured
5,125 California Health Facilities Financing Authority, Revenue 11/16 at 100.00 Aa3 4,589,922
Bonds, Sutter Health, Tender Option Bond Trust 3175,
12.384%, 11/15/46 (IF)
9,000 California Infrastructure Economic Development Bank, Revenue 8/11 at 102.00 A+ 9,052,920
Bonds, Kaiser Hospital Assistance LLC, Series 2001A,
5.550%, 8/01/31
2,520 California Statewide Communities Development Authority, 3/15 at 100.00 A 2,204,874
Revenue Bonds, Adventist Health System West, Series 2005A,
5.000%, 3/01/35
1,650 California Statewide Communities Development Authority, 3/18 at 100.00 AAA 1,576,460
Revenue Bonds, Adventist Health System West, Series 2007B,
5.000%, 3/01/37 - AGC Insured
1,594 California Statewide Communities Development Authority, 7/18 at 100.00 AAA 1,595,285
Revenue Bonds, Saint Joseph Health System, Trust 2554,
18.134%, 7/01/47 - FSA Insured (IF)
California Statewide Communities Development Authority,
Revenue Bonds, ValleyCare Health System, Series 2007A:
900 4.800%, 7/15/17 No Opt. Call N/R 751,959
3,435 5.125%, 7/15/31 7/17 at 100.00 N/R 2,265,486
6,525 California Statewide Community Development Authority, Health No Opt. Call A+ 7,102,202
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 6,876,732
Hospital Revenue Bonds, Monterey Peninsula Hospital,
Series 2003B, 5.250%, 6/01/18 - FSA Insured
4,500 California Statewide Community Development Authority, Insured 7/17 at 100.00 AAA 4,492,890
Health Facility Revenue Bonds, Catholic Healthcare West,
Series 2008K, 5.500%, 7/01/41 - AGC Insured
7,665 California Statewide Community Development Authority, Insured 11/09 at 102.00 A 7,673,968
Mortgage Hospital Revenue Bonds, Mission Community
Hospital, Series 2001, 5.375%, 11/01/21
42 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 12,425 California Statewide Community Development Authority, Revenue 3/16 at 100.00 A+ $ 11,076,141
Bonds, Kaiser Permanante System, Series 2006, 5.000%,
3/01/41
645 California Statewide Community Development Authority, Revenue 8/16 at 100.00 A+ 624,579
Bonds, Kaiser Permanente System, Series 2001C, 5.250%,
8/01/31
6,720 California Statewide Community Development Authority, Revenue 11/16 at 100.00 Aa3 4,540,435
Bonds, Sutter Health, Tender Option Bond Trust 3046,
12.220%, 11/15/46 (IF)
2,950 Loma Linda, California, Hospital Revenue Bonds, Loma Linda 12/18 at 100.00 BBB 3,088,149
University Medical Center, Series 2008A, 8.250%, 12/01/38
Rancho Mirage Joint Powers Financing Authority, California,
Revenue Bonds, Eisenhower Medical Center, Series 2007A:
5,790 5.000%, 7/01/38 7/17 at 100.00 A3 5,196,583
2,500 5.000%, 7/01/47 7/17 at 100.00 A3 2,159,025
------------------------------------------------------------------------------------------------------------------------------------
89,064 Total Health Care 83,010,012
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 3.5% (2.3% OF TOTAL INVESTMENTS)
325 Independent Cities Lease Finance Authority, California, Mobile 5/16 at 100.00 N/R 241,238
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+ 1,531,242
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 970,088
Revenue Bonds, Rancho Feliz Mobile Home Park, Series 2003B,
6.625%, 9/15/38
3,610 San Bernardino County Housing Authority, California, GNMA 11/11 at 105.00 Aaa 3,738,769
Collateralized Multifamily Mortgage Revenue Bonds, Pacific
Palms Mobile Home Park, Series 2001A, 6.700%, 12/20/41
San Jose, California, Multifamily Housing Revenue Bonds, GNMA
Mortgage-Backed Securities Program, Lenzen Housing, Series
2001B:
1,250 5.350%, 2/20/26 (Alternative Minimum Tax) 8/11 at 102.00 AAA 1,260,950
2,880 5.450%, 2/20/43 (Alternative Minimum Tax) 8/11 at 102.00 AAA 2,887,056
------------------------------------------------------------------------------------------------------------------------------------
10,925 Total Housing/Multifamily 10,629,343
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 4.0% (2.6% OF TOTAL INVESTMENTS)
2,655 California Housing Finance Agency, California, Home Mortgage 2/17 at 100.00 AA- 2,161,455
Revenue Bonds, Series 2008, Trust 3137, 13.653%, 8/01/37
(Alternative Minimum Tax) (IF)
670 California Housing Finance Agency, Home Mortgage Revenue 2/16 at 100.00 AA- 677,906
Bonds, Series 2006H, 5.750%, 8/01/30 - FGIC Insured
(Alternative Minimum Tax)
14,505 California Housing Finance Agency, Home Mortgage Revenue 2/16 at 100.00 AA- 9,089,848
Bonds, Series 2007M, Trust 1021, 7.286%, 8/01/31
(Alternative Minimum Tax) (IF)
------------------------------------------------------------------------------------------------------------------------------------
17,830 Total Housing/Single Family 11,929,209
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.7% (1.1% OF TOTAL INVESTMENTS)
2,000 California Pollution Control Financing Authority, Solid Waste 1/16 at 102.00 BBB 1,843,520
Disposal Revenue Bonds, Waste Management Inc., Series
2002A, 5.000%, 1/01/22 (Alternative Minimum Tax)
5,205 California Statewide Communities Development Authority, No Opt. Call BB 3,384,812
Revenue Bonds, EnerTech Regional Biosolids Project, Series
2007A, 5.500%, 12/01/33 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
7,205 Total Industrials 5,228,332
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.7% (1.1% OF TOTAL INVESTMENTS)
2,450 California Health Facilities Financing Authority, Cal-Mortgage 1/13 at 100.00 A 2,391,862
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 1,464,180
1,315 5.250%, 3/01/32 3/12 at 101.00 A 1,218,532
------------------------------------------------------------------------------------------------------------------------------------
5,265 Total Long-Term Care 5,074,574
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 43
NZH | Nuveen California Dividend Advantage Municipal Fund 3 (continued)
| Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 18.3% (12.0% OF TOTAL INVESTMENTS)
$ 9,335 California, General Obligation Bonds, Series 2002, 6.000%, No Opt. Call AAA $ 10,510,743
2/01/16 - FSA Insured
14,300 California, General Obligation Veterans Welfare Bonds, Series 12/09 at 100.00 AA- 14,232,789
2001BZ, 5.350%, 12/01/21 - NPFG Insured (Alternative
Minimum Tax)
3,000 Contra Costa County Community College District, California, 8/12 at 100.00 AA 3,093,570
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 Aa3 2,585,300
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 A 2,342,309
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 871,296
Series 2001, 5.000%, 7/01/24 - FSA Insured
575 Roseville Joint Union High School District, Placer County, 8/15 at 100.00 AA- 590,370
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 11,710,040
California, General Obligation Bonds, Election of 1998,
Series 2001C, 5.000%, 7/01/26 - FSA Insured
4,000 San Diego Unified School District, San Diego County, 7/12 at 101.00 AA 4,418,640
California, General Obligation Bonds, Election of 1998,
Series 2002D, 5.250%, 7/01/21 - FGIC Insured
2,715 San Jose-Evergreen Community College District, Santa Clara 9/15 at 100.00 Aa2 2,817,491
County, California, General Obligation Bonds, Series 2005A,
5.000%, 9/01/25 - NPFG Insured
1,630 West Contra Costa Unified School District, Contra Costa 8/11 at 101.00 A 1,647,148
County, California, General Obligation Bonds, Series 2003C,
5.000%, 8/01/22 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
51,995 Total Tax Obligation/General 54,819,696
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 39.7% (26.0% OF TOTAL INVESTMENTS)
2,040 Borrego Water District, California, Community Facilities 8/17 at 102.00 N/R 1,648,789
District 2007-1 Montesoro, Special Tax Bonds, Series 2007,
5.750%, 8/01/25
7,135 Brentwood Infrastructure Financing Authority, Contra Costa 11/11 at 100.00 AAA 7,191,295
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- 8,600,058
Department of Corrections, Series 2003C, 5.500%, 6/01/16
4,000 California State Public Works Board, Lease Revenue Bonds, 3/12 at 100.00 A- 3,738,680
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 A- 4,231,733
Department of Mental Health, Hospital Addition, Series
2001A, 5.000%, 12/01/26 - AMBAC Insured
Capistrano Unified School District, Orange County, California,
Special Tax Bonds, Community Facilities District 90-2 -
Talega, Series 2003:
1,750 5.875%, 9/01/23 9/13 at 100.00 N/R 1,657,373
550 6.000%, 9/01/33 9/13 at 100.00 N/R 479,908
715 Capistrano Unified School District, Orange County, California, 9/15 at 100.00 A 661,590
Special Tax Bonds, Community Facilities District, Series
2005, 5.000%, 9/01/24 - FGIC Insured
2,160 Chino Redevelopment Agency, California, Merged Chino 9/16 at 101.00 BBB 1,761,113
Redevelopment Project Area Tax Allocation Bonds, Series
2006, 5.000%, 9/01/38 - AMBAC Insured
1,125 Fontana, California, Special Tax Bonds, Sierra Community 9/14 at 100.00 N/R 876,859
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 915,620
Tax Bonds, Amerige Heights, Series 2002, 6.100%, 9/01/22
5,000 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 A- 4,312,450
Tobacco Settlement Asset-Backed Revenue Bonds, Series
2005A, 5.000%, 6/01/45 - AMBAC Insured
Irvine, California, Unified School District, Community
Facilities District Special Tax Bonds, Series 2006A:
330 5.000%, 9/01/26 9/16 at 100.00 N/R 288,592
760 5.125%, 9/01/36 9/16 at 100.00 N/R 625,738
3,000 Lake Elsinore Public Finance Authority, California, Local 10/13 at 102.00 N/R 2,670,240
Agency Revenue Refunding Bonds, Series 2003H, 6.000%,
10/01/20
44 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 685 Lammersville School District, San Joaquin County, California, 9/16 at 100.00 N/R $ 460,724
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 4,707,938
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 1,716,500
Tax Bonds, Community Facilities District 1 of Sycamore
Creek, Series 2003, 6.500%, 9/01/24
1,000 Lindsay Redevelopment Agency, California, Project 1 Tax 8/17 at 100.00 BBB+ 818,880
Allocation Bonds, Series 2007, 5.000%, 8/01/37 - RAAI
Insured
5,425 Lodi, California, Certificates of Participation, Public 10/12 at 100.00 A 5,406,284
Improvement Financing Project, Series 2002, 5.000%,
10/01/26 - NPFG Insured
1,310 Los Angeles Community Redevelopment Agency, California, Lease 9/15 at 100.00 A2 1,106,898
Revenue Bonds, Manchester Social Services Project, Series
2005, 5.000%, 9/01/37 - AMBAC Insured
1,675 Moreno Valley Unified School District, Riverside County, 3/14 at 100.00 AAA 1,715,619
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:
545 5.000%, 9/01/26 9/14 at 102.00 N/R 422,931
250 5.000%, 9/01/33 9/14 at 102.00 N/R 181,448
3,000 Oakland Redevelopment Agency, California, Subordinate Lien Tax 3/13 at 100.00 A 3,011,070
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 A+ 4,515,118
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 1,766,140
Facilities District 02-1 of Ladera Ranch, Series 2003A,
5.550%, 8/15/33
11,165 Palm Desert Financing Authority, California, Tax Allocation 4/12 at 102.00 A 9,712,099
Revenue Refunding Bonds, Project Area 1, Series 2002,
5.100%, 4/01/30 - NPFG Insured
3,250 Pomona Public Financing Authority, California, Revenue 2/11 at 100.00 A 3,208,953
Refunding Bonds, Merged Redevelopment Projects, Series
2001AD, 5.000%, 2/01/27 - NPFG Insured
6,000 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call BBB 5,416,380
Revenue Bonds, Series 2007N, 5.250%, 7/01/39 - FGIC Insured
625 Rialto Redevelopment Agency, California, Tax Allocation Bonds, 9/15 at 100.00 A- 518,281
Merged Project Area, Series 2005A, 5.000%, 9/01/35 -
SYNCORA GTY Insured
780 Roseville, California, Certificates of Participation, Public 8/13 at 100.00 AA- 730,306
Facilities, Series 2003A, 5.000%, 8/01/25 - AMBAC Insured
1,145 Sacramento, California, Special Tax Bonds, North Natomas 9/14 at 100.00 N/R 924,462
Community Facilities District 4, Series 2003C, 6.000%,
9/01/33
14,505 San Diego Redevelopment Agency, California, Tax Allocation 9/11 at 101.00 AAA 14,292,792
Bonds, Centre City Project, Series 2001, 5.000%, 9/01/26 -
FSA Insured (UB)
2,300 San Francisco Bay Area Rapid Transit District, California, 7/11 at 100.00 AA+ 2,342,596
Sales Tax Revenue Bonds, Series 2001, 5.000%, 7/01/26 -
AMBAC Insured
1,345 San Mateo Union High School District, San Mateo County, 12/17 at 100.00 N/R 1,171,266
California, Certificates of Participation, Phase 1, Series
2007A, 5.000%, 12/15/30 - AMBAC Insured
8,710 South Orange County Public Financing Authority, California, 8/15 at 100.00 BBB+ 7,410,642
Special Tax Revenue Bonds, Ladera Ranch, Series 2005A,
5.000%, 8/15/32 - AMBAC Insured
600 West Patterson Financing Authority, California, Special Tax 9/14 at 105.00 N/R 610,068
Bonds, Community Facilities District 01-1, Refunding Series
2009A, 8.625%, 9/01/39
2,810 West Patterson Financing Authority, California, Special Tax 9/13 at 103.00 N/R 2,321,257
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 1,436,400
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 1,005,826
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 A 2,325,875
County, California, General Obligation Refunding Bonds,
Series 2001A, 5.000%, 10/01/26 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
129,055 Total Tax Obligation/Limited 118,916,791
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 45
NZH | Nuveen California Dividend Advantage Municipal Fund 3 (continued)
| Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 7.1% (4.6% OF TOTAL INVESTMENTS)
$ 1,690 Bay Area Toll Authority, California, Revenue Bonds, San 4/16 at 100.00 AA $ 1,725,068
Francisco Bay Area Toll Bridge, Series 2006F, 5.000%,
4/01/31 (UB)
11,750 Foothill/Eastern Transportation Corridor Agency, California, 1/14 at 101.00 BBB- 9,874,465
Toll Road Revenue Refunding Bonds, Series 1999, 5.875%,
1/15/28
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 A1 4,285,949
5,140 5.125%, 5/01/19 - FGIC Insured 5/13 at 100.00 A1 5,293,892
------------------------------------------------------------------------------------------------------------------------------------
22,690 Total Transportation 21,179,374
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 24.4% (16.0% OF TOTAL INVESTMENTS) (4)
4,000 Beaumont Financing Authority, California, Local Agency Revenue 9/12 at 102.00 N/R (4) 4,706,000
Bonds, Series 2002A, 6.750%, 9/01/25 (Pre-refunded 9/01/12)
10,140 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 Baa3 (4) 10,917,129
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) - SYNCORA GTY Insured 5/12 at 101.00 Aaa 3,927,560
9,000 5.125%, 5/01/18 (Pre-refunded 5/01/12) 5/12 at 101.00 Aaa 10,040,490
720 California Statewide Community Development Authority, Revenue 10/15 at 100.00 N/R (4) 798,005
Bonds, Thomas Jefferson School of Law, Series 2005A,
4.875%, 10/01/31 (Pre-refunded 10/01/15)
1,770 Central California Joint Powers Health Finance Authority, 2/10 at 101.00 AAA 1,828,853
Certificates of Participation, Community Hospitals of
Central California Obligated Group, Series 2000, 6.000%,
2/01/20 (Pre-refunded 2/01/10)
2,000 Daly City Housing Development Finance Agency, California, 12/13 at 102.00 N/R (4) 2,374,940
Mobile Home Park Revenue Bonds, Franciscan Mobile Home Park
Project, Series 2002A, 5.800%, 12/15/25 (Pre-refunded
12/15/13)
5,130 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 5,730,980
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.250%, 6/01/33 (Pre-refunded 6/01/13)
1,940 Lincoln, California, Special Tax Bonds, Lincoln Crossing 9/13 at 102.00 N/R (4) 2,345,421
Community Facilities District 03-1, Series 2003A, 6.500%,
9/01/25 (Pre-refunded 9/01/13)
1,335 Lincoln, California, Special Tax Bonds, Lincoln Crossing 9/13 at 102.00 N/R (4) 1,588,209
Community Facilities District 03-1, Series 2004, 6.000%,
9/01/34 (Pre-refunded 9/01/13)
1,525 Lucia Mar Unified School District, San Luis Obispo County, 8/14 at 100.00 A1 (4) 1,780,163
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 6,109,180
Revenue Bonds, Series 2002D, 5.375%, 7/01/36 (Pre-refunded
7/01/12)
4,725 San Francisco Bay Area Rapid Transit District, California, 7/11 at 100.00 AA+ (4) 5,089,439
Sales Tax Revenue Bonds, Series 2001, 5.000%, 7/01/26
(Pre-refunded 7/01/11) - AMBAC Insured
7,595 San Francisco State University Foundation Inc., California, 9/11 at 101.00 A (4) 8,302,170
Auxiliary Organization Student Housing Revenue Bonds,
Series 2001, 5.000%, 9/01/26 (Pre-refunded 9/01/11) - MBIA
Insured
4,200 Tobacco Securitization Authority of Southern California, 6/12 at 100.00 AAA 4,669,476
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, 6/12 at 101.00 N/R (4) 2,827,025
Presbyterian Intercommunity Hospital, Series 2002, 5.600%,
6/01/22 (Pre-refunded 6/01/12)
------------------------------------------------------------------------------------------------------------------------------------
65,580 Total U.S. Guaranteed 73,035,040
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 3.6% (2.3% OF TOTAL INVESTMENTS)
3,815 Long Beach Bond Finance Authority, California, Natural Gas No Opt. Call A 3,415,493
Purchase Revenue Bonds, Series 2007A, 5.000%, 11/15/35
1,285 Merced Irrigation District, California, Electric System 9/15 at 100.00 N/R 1,078,398
Revenue Bonds, Series 2005, 5.125%, 9/01/31 - SYNCORA GTY
Insured
5,000 Merced Irrigation District, California, Revenue Certificates 9/13 at 102.00 Baa3 4,099,950
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 A- 2,061,585
Bonds, Series 2002, 5.125%, 8/01/22 - AMBAC Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
12,350 Total Utilities 10,655,426
------------------------------------------------------------------------------------------------------------------------------------
46 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 8.4% (5.5% OF TOTAL INVESTMENTS)
$ 1,070 Burbank, California, Wastewater System Revenue Bonds, Series 6/14 at 100.00 AA+ $ 1,109,194
2004A, 5.000%, 6/01/22 - AMBAC Insured
7,000 Carmichael Water District, Sacramento County, California, 9/09 at 102.00 AA- 7,003,290
Water Revenue Certificates of Participation, Series 1999,
5.125%, 9/01/29 - NPFG Insured
1,125 Fortuna Public Finance Authority, California, Water Revenue 10/16 at 100.00 AAA 1,128,949
Bonds, Series 2006, 5.000%, 10/01/36 - FSA Insured
890 Healdsburg Public Financing Authority, California, Wastewater 4/16 at 100.00 AA- 850,902
Revenue Bonds, Series 2006, 5.000%, 4/01/36 - NPFG Insured
850 Marina Coast Water District, California, Enterprise 6/16 at 100.00 A+ 819,366
Certificate of Participation, Series 2006, 5.000%,
6/01/31 - NPFG Insured
1,000 Pico Rivera Water Authority, California, Revenue Bonds, Series 12/11 at 102.00 N/R 842,630
2001A, 6.250%, 12/01/32
1,000 San Buenaventura, California, Wastewater Revenue Certificates 3/14 at 100.00 AA 1,022,620
of Participation, Series 2004, 5.000%, 3/01/24 - NPFG
Insured
San Diego Public Facilities Financing Authority, California,
Subordinate Lien Water Revenue Bonds, Series 2002:
2,500 5.000%, 8/01/23 - NPFG Insured 8/12 at 100.00 A+ 2,526,900
6,260 5.000%, 8/01/24 - NPFG Insured 8/12 at 100.00 A+ 6,312,083
3,315 San Francisco City and County Public Utilities Commission, 4/13 at 100.00 A+ 3,507,204
California, Clean Water Revenue Refunding Bonds, Series
2003A, 5.250%, 10/01/18 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
25,010 Total Water and Sewer 25,123,138
------------------------------------------------------------------------------------------------------------------------------------
$ 488,754 Total Long-Term Investments (cost $481,532,305) - 152.1% 455,597,359
===============---------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.7% (0.5% OF TOTAL INVESTMENTS)
TAX OBLIGATION/GENERAL - 0.2% (0.1% OF TOTAL INVESTMENTS)
500 California, General Obligation Bonds, Variable Rate Demand 9/09 at 100.00 A-1 500,000
Obligations, Series 2003C-1, 0.210%, 5/01/33 (5)
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 0.5% (0.4% OF TOTAL INVESTMENTS)
1,595 Metropolitan Water District of Southern California, Water 9/09 at 100.00 A-1 1,595,000
Revenue Bonds, Variable Rate Demand Obligations, Series
2008A-1, 0.240%, 7/01/37 (5)
------------------------------------------------------------------------------------------------------------------------------------
$ 2,095 Total Short-Term Investments (cost $2,095,000) 2,095,000
===============---------------------------------------------------------------------------------------------------------------------
Total Investments (cost $483,627,305) - 152.8% 457,692,359
------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (3.7)% (11,100,000)
------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.3% 7,058,140
------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred Shares, at Liquidation Value - (51.4)% (6) (154,075,000)
------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 299,575,499
==================================================================================================================
(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 Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's 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) Auction Rate Preferred Shares, at Liquidation Value as a percentage of
Total Investments is 33.7%.
N/R Not rated.
(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 Notes to
Financial Statements, Footnote 1 - Inverse Floating Rate Securities for
more information.
See accompanying notes to financial statements.
Nuveen Investments 47
NKL | Nuveen Insured California Dividend Advantage Municipal Fund
| Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 3.4% (2.3% OF TOTAL INVESTMENTS)
$ 14,155 Golden State Tobacco Securitization Corporation, California, 6/22 at 100.00 BBB $ 7,456,854
Enhanced Tobacco Settlement Asset-Backed Bonds, Series
2007A-2, 0.000%, 6/01/37
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 5.0% (3.3% OF TOTAL
INVESTMENTS)
1,675 California Educational Facilities Authority, Revenue Bonds, 10/12 at 100.00 A2 1,679,171
University of San Diego, Series 2002A, 5.250%, 10/01/30
9,000 California State University, Systemwide Revenue Bonds, Series 11/12 at 100.00 Aa3 9,158,400
2002A, 5.125%, 11/01/26 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
10,675 Total Education and Civic Organizations 10,837,571
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 6.5% (4.3% OF TOTAL INVESTMENTS)
5,000 ABAG Finance Authority for Non-Profit Corporations, 4/12 at 100.00 A 4,974,100
California, Cal-Mortgage Insured Revenue Bonds,
Sansum-Santa Barbara Medical Foundation Clinic, Series
2002A, 5.600%, 4/01/26
2,815 California Health Facilities Financing Authority, Revenue 8/13 at 100.00 AA 2,861,335
Bonds, Lucile Salter Packard Children's Hospital, Series
2003C, 5.000%, 8/15/20 - AMBAC Insured
1,748 California Statewide Communities Development Authority, 7/18 at 100.00 AAA 1,749,457
Revenue Bonds, Saint Joseph Health System, Trust 2554,
18.134%, 7/01/47 - FSA Insured (IF)
5,000 California Statewide Community Development Authority, Revenue 3/16 at 100.00 A+ 4,457,200
Bonds, Kaiser Permanante System, Series 2006, 5.000%,
3/01/41
------------------------------------------------------------------------------------------------------------------------------------
14,563 Total Health Care 14,042,092
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.3% (0.9% OF TOTAL INVESTMENTS)
1,000 California Statewide Community Development Authority, Student 8/12 at 100.00 Baa1 972,050
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 1,954,587
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 2,926,637
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.2% (0.1% OF TOTAL INVESTMENTS)
430 California Housing Finance Agency, Home Mortgage Revenue 2/16 at 100.00 AA- 435,074
Bonds, Series 2006H, 5.750%, 8/01/30 - FGIC Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.1% (0.7% OF TOTAL INVESTMENTS)
2,435 California Pollution Control Financing Authority, Solid Waste No Opt. Call BBB 2,364,239
Disposal Revenue Bonds, Republic Services Inc., Series
2002C, 5.250%, 6/01/23 (Mandatory put 12/01/17)
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.3% (0.9% OF TOTAL INVESTMENTS)
3,000 ABAG Finance Authority for Non-Profit Corporations, 11/12 at 100.00 A 2,941,380
California, Insured Senior Living Revenue Bonds, Odd
Fellows Home of California, Series 2003A, 5.200%, 11/15/22
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 27.6% (18.2% OF TOTAL INVESTMENTS)
5,920 Cajon Valley Union School District, San Diego County, 8/10 at 102.00 AA- 6,000,453
California, General Obligation Bonds, Series 2002B, 5.125%,
8/01/32 - NPFG Insured
900 California, General Obligation Bonds, Series 2003, 5.000%, 8/13 at 100.00 A 924,867
2/01/21
8,250 California, General Obligation Refunding Bonds, Series 2002, 2/12 at 100.00 A 8,359,148
5.000%, 2/01/22 - NPFG Insured
3,375 Coast Community College District, Orange County, California, 8/18 at 100.00 AAA 2,707,999
General Obligation Bonds, Series 2006C, 0.000%, 8/01/31 -
FSA Insured
230 El Monte Union High School District, Los Angeles County, 6/13 at 100.00 AAA 231,546
California, General Obligation Bonds, Series 2003A, 5.000%,
6/01/28 - FSA Insured
2,730 Fontana Unified School District, San Bernardino County, 8/18 at 100.00 AAA 2,999,233
California, General Obligation Bonds, Trust 2668, 8.829%,
8/01/28 - FSA Insured (IF)
10,000 Fremont Unified School District, Alameda County, California, 8/12 at 101.00 Aa3 10,109,300
General Obligation Bonds, Series 2002A, 5.000%, 8/01/25 -
FGIC Insured
48 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 1,000 Los Rios Community College District, Sacramento, El Dorado 8/14 at 102.00 AAA $ 1,069,520
and Yolo Counties, California, General Obligation Bonds,
Series 2006C, 5.000%, 8/01/25 - FSA Insured (UB)
1,500 Madera Unified School District, Madera County, California, 8/12 at 100.00 AAA 1,512,075
General Obligation Bonds, Series 2002, 5.000%, 8/01/28 -
FSA Insured
2,000 Murrieta Valley Unified School District, Riverside County, 9/17 at 100.00 AAA 1,905,900
California, General Obligation Bonds, Series 2007, 4.500%,
9/01/30 - FSA Insured
2,500 Oakland Unified School District, Alameda County, California, 8/12 at 100.00 A 2,501,825
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 AA- 385,024
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 3,520,595
California, General Obligation Bonds, Election of 1998,
Series 2001C, 5.000%, 7/01/22 - FSA Insured
3,500 San Mateo County Community College District, California, 9/12 at 100.00 Aa1 3,575,180
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 10,168,499
General Obligation Bonds, Series 2002A, 5.000%, 8/01/23 -
FSA Insured
3,905 West Kern Community College District, California, General 11/17 at 100.00 A+ 3,873,135
Obligation Bonds, Election 2004, Series 2007C, 5.000%,
10/01/32 - SYNCORA GTY Insured
------------------------------------------------------------------------------------------------------------------------------------
59,435 Total Tax Obligation/General 59,844,299
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 48.7% (32.1% OF TOTAL INVESTMENTS)
1,450 Baldwin Park Public Financing Authority, California, Sales 8/13 at 102.00 BBB 1,443,707
Tax and Tax Allocation Bonds, Puente Merced Redevelopment
Project, Series 2003, 5.250%, 8/01/21
6,895 Brea and Olinda Unified School District, Orange County, 8/11 at 101.00 AAA 6,992,495
California, Certificates of Participation Refunding,
Series 2002A, 5.125%, 8/01/26 - FSA Insured
2,200 California Infrastructure Economic Development Bank, Los 9/13 at 101.00 N/R 1,977,910
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 A- 2,827,820
Department of Health Services, Richmond Lab, Series 2005B,
5.000%, 11/01/30 - SYNCORA GTY Insured
465 Capistrano Unified School District, Orange County, 9/15 at 100.00 A 430,265
California, Special Tax Bonds, Community Facilities
District, Series 2005, 5.000%, 9/01/24 - FGIC Insured
1,400 Chino Redevelopment Agency, California, Merged Chino 9/16 at 101.00 BBB 1,141,462
Redevelopment Project Area Tax Allocation Bonds, Series
2006, 5.000%, 9/01/38 - AMBAC Insured
7,035 Corona-Norco Unified School District, Riverside County, 9/13 at 100.00 A 7,136,726
California, Special Tax Bonds, Community Facilities
District 98-1, Series 2003, 5.000%, 9/01/28 - NPFG Insured
3,145 Culver City Redevelopment Agency, California, Tax Allocation 5/11 at 101.00 A 2,710,298
Revenue Bonds, Redevelopment Project, Series 2002A,
5.125%, 11/01/25 - NPFG Insured
8,720 El Monte, California, Senior Lien Certificates of 1/11 at 100.00 A3 8,765,170
Participation, 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 N/R 3,768,960
Revenue Bonds, Series 2004A, 5.000%, 9/01/21 - AMBAC
Insured
7,700 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 AAA 6,659,268
Enhanced Tobacco Settlement Revenue Bonds, Drivers Trust
2091, 9.349%, 6/01/45 - AGC Insured (IF)
8,780 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 A- 7,572,662
Tobacco Settlement Asset-Backed Revenue Bonds, Series
2005A, 5.000%, 6/01/45 - AMBAC Insured
1,300 Hesperia Public Financing Authority, California, 9/17 at 100.00 Baa1 992,992
Redevelopment and Housing Projects Tax Allocation Bonds,
Series 2007A, 5.000%, 9/01/37 - SYNCORA GTY Insured
2,115 Inglewood Redevelopment Agency, California, Tax Allocation No Opt. Call N/R 2,089,282
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 A+ 3,052,455
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 A+ 3,205,282
Bonds, Redevelopment Project Area 1, Series 2002, 5.000%,
9/01/22 - AMBAC Insured
Nuveen Investments 49
NKL | Nuveen Insured California Dividend Advantage Municipal Fund (continued)
Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 845 Los Angeles Community Redevelopment Agency, California, Lease 9/15 at 100.00 A2 $ 713,991
Revenue Bonds, Manchester Social Services Project, Series
2005, 5.000%, 9/01/37 - AMBAC Insured
1,640 Los Angeles County Metropolitan Transportation Authority, 1/10 at 100.00 A1 1,641,017
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 AA- 1,462,847
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 AA- 7,102,620
Series 2002, 5.200%, 4/01/27 - AMBAC Insured
8,470 Ontario Redevelopment Financing Authority, California, Lease 8/11 at 101.00 A+ 8,577,230
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 A 4,512,150
Revenue Refunding Bonds, Project Area 1, Series 2002,
5.000%, 4/01/25 - NPFG Insured
3,000 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call BBB 2,708,190
Revenue Bonds, Series 2007N, 5.250%, 7/01/39 - FGIC Insured
405 Rialto Redevelopment Agency, California, Tax Allocation 9/15 at 100.00 A- 335,846
Bonds, Merged Project Area, Series 2005A, 5.000%,
9/01/35 - SYNCORA GTY Insured
4,475 Riverside County, California, Asset Leasing Corporate 6/12 at 101.00 A 4,333,411
Leasehold Revenue Bonds, Riverside County Hospital
Project, Series 1997B, 5.000%, 6/01/19 - NPFG Insured
505 Roseville, California, Certificates of Participation, Public 8/13 at 100.00 AA- 472,826
Facilities, Series 2003A, 5.000%, 8/01/25 - AMBAC Insured
3,175 San Buenaventura, California, Certificates of Participation, 2/11 at 101.00 N/R 2,830,227
Series 2001C, 5.250%, 2/01/31 - AMBAC Insured
3,730 San Diego Redevelopment Agency, California, Subordinate Lien 9/09 at 101.00 Baa2 3,386,392
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 AA+ 4,185,600
Refunding Bonds, Convention Center Project, Series 2001F,
5.000%, 9/01/19 - NPFG Insured
1,000 San Jose Redevelopment Agency, California, Tax Allocation 8/15 at 100.00 A 880,550
Bonds, Merged Project Area, Series 2005A, 5.000%,
8/01/28 - NPFG Insured
2,160 Temecula Redevelopment Agency, California, Tax Allocation 8/10 at 100.00 A 1,962,922
Revenue Bonds, Redevelopment Project 1, Series 2002,
5.125%, 8/01/27 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
112,070 Total Tax Obligation/Limited 105,872,573
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 4.9% (3.3% OF TOTAL INVESTMENTS)
7,500 Foothill/Eastern Transportation Corridor Agency, California, 1/14 at 101.00 BBB- 6,213,375
Toll Road Revenue Refunding Bonds, Series 1999, 5.875%,
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 A1 2,209,057
2,300 5.250%, 5/01/17 - FGIC Insured (Alternative Minimum Tax) 5/13 at 100.00 A1 2,309,706
------------------------------------------------------------------------------------------------------------------------------------
11,985 Total Transportation 10,732,138
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 21.8% (14.3% OF TOTAL INVESTMENTS) (4)
6,000 California Department of Water Resources, Power Supply 5/12 at 101.00 Aaa 6,693,660
Revenue Bonds, Series 2002A, 5.125%, 5/01/18 (Pre-refunded
5/01/12)
35 California Department of Water Resources, Water System 12/12 at 100.00 AAA 39,471
Revenue Bonds, Central Valley Project, Series 2002X,
5.150%, 12/01/23 (Pre-refunded 12/01/12) - FGIC Insured
2,250 California Infrastructure Economic Development Bank, First 1/28 at 100.00 AAA 2,589,525
Lien Revenue Bonds, San Francisco Bay Area Toll Bridge,
Series 2003A, 5.000%, 7/01/36 (Pre-refunded 1/01/28) -
AMBAC Insured
9,000 Eastern Municipal Water District, California, Water and 7/11 at 100.00 AA (4) 9,699,390
Sewerage System Revenue Certificates of Participation,
Series 2001B, 5.000%, 7/01/30 (Pre-refunded 7/01/11) -
FGIC 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 A+ (4) 1,192,703
1,190 5.125%, 8/01/24 - FGIC Insured (ETM) 8/10 at 102.00 A+ (4) 1,250,500
1,245 5.125%, 8/01/25 - FGIC Insured (ETM) 8/10 at 102.00 A+ (4) 1,308,296
1,255 5.125%, 8/01/26 - FGIC Insured (ETM) 8/10 at 102.00 A+ (4) 1,318,804
50 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 2,070 Fresno Unified School District, Fresno County, California, 8/10 at 102.00 AAA $ 2,177,205
General Obligation Bonds, Series 2002G, 5.125%, 8/01/26 -
FSA Insured (ETM)
4,500 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 5,479,200
Tobacco Settlement Asset-Backed Revenue Bonds, Series
2003A-2, 7.900%, 6/01/42 (Pre-refunded 6/01/13)
5,000 Los Angeles Unified School District, California, General 7/12 at 100.00 AA- (4) 5,562,050
Obligation Bonds, Series 2002E, 5.125%, 1/01/27
(Pre-refunded 7/01/12) - MBIA Insured
3,380 Rancho Mirage Joint Powers Financing Authority, California, 7/14 at 100.00 A3 (4) 4,017,333
Revenue Bonds, Eisenhower Medical Center, Series 2004,
5.875%, 7/01/26 (Pre-refunded 7/01/14)
2,980 Santa Clarita Community College District, Los Angeles County, 8/11 at 101.00 AA (4) 3,257,289
California, General Obligation Bonds, Series 2002, 5.125%,
8/01/26 (Pre-refunded 8/01/11) - FGIC Insured
2,460 Vacaville Unified School District, Solano County, California, 8/11 at 101.00 AAA 2,683,073
General Obligation Bonds, Series 2002, 5.000%, 8/01/26
(Pre-refunded 8/01/11) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
42,500 Total U.S. Guaranteed 47,268,499
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 15.1% (9.9% OF TOTAL INVESTMENTS)
9,000 Anaheim Public Finance Authority, California, Revenue Bonds, 10/12 at 100.00 AAA 9,114,930
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 A 10,119,300
Revenue Bonds, Pacific Gas and Electric Company, Series
1996A, 5.350%, 12/01/16 - NPFG Insured (Alternative
Minimum Tax)
2,490 Long Beach Bond Finance Authority, California, Natural Gas No Opt. Call A 2,229,247
Purchase Revenue Bonds, Series 2007A, 5.000%, 11/15/35
830 Merced Irrigation District, California, Electric System 9/15 at 100.00 N/R 696,553
Revenue Bonds, Series 2005, 5.125%, 9/01/31 - SYNCORA GTY
Insured
1,775 Northern California Power Agency, Revenue Refunding Bonds, 7/10 at 100.00 A2 1,767,811
Hydroelectric Project 1, Series 1998A, 5.200%, 7/01/32 -
NPFG Insured
3,000 Sacramento Municipal Utility District, California, Electric 8/11 at 100.00 A+ 3,004,890
Revenue Bonds, Series 2001N, 5.000%, 8/15/28 - NPFG Insured
5,630 Southern California Public Power Authority, Subordinate 7/12 at 100.00 AAA 5,785,838
Revenue Refunding Bonds, Transmission Project, Series
2002A, 4.750%, 7/01/19 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
32,725 Total Utilities 32,718,569
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 14.7% (9.7% OF TOTAL INVESTMENTS)
2,965 California Department of Water Resources, Water System 12/12 at 100.00 AAA 3,147,614
Revenue Bonds, Central Valley Project, Series 2002X,
5.150%, 12/01/23 - FGIC Insured
750 Fortuna Public Finance Authority, California, Water Revenue 10/16 at 100.00 AAA 752,633
Bonds, Series 2006, 5.000%, 10/01/36 - FSA Insured
570 Healdsburg Public Financing Authority, California, Wastewater 4/16 at 100.00 AA- 544,960
Revenue Bonds, Series 2006, 5.000%, 4/01/36 - NPFG Insured
4,500 Los Angeles County Sanitation Districts Financing Authority, 10/13 at 100.00 AAA 4,737,825
California, Senior Revenue Bonds, Capital Projects, Series
2003A, 5.000%, 10/01/23 - FSA Insured
2,085 Manteca Financing Authority, California, Sewerage Revenue 12/13 at 100.00 A2 1,961,797
Bonds, Series 2003B, 5.000%, 12/01/33 - NPFG Insured
500 Marina Coast Water District, California, Enterprise 6/16 at 100.00 A+ 481,980
Certificate of Participation, Series 2006, 5.000%, 6/01/31
- NPFG Insured
9,185 Orange County Sanitation District, California, Certificates 8/13 at 100.00 AAA 9,269,043
of Participation, Series 2003, 5.000%, 2/01/33 - FGIC
Insured (UB)
8,000 San Diego County Water Authority, California, Water Revenue 5/18 at 100.00 AAA 8,066,640
Certificates of Participation, Series 2008A, 5.000%,
5/01/38 - FSA Insured
Nuveen Investments 51
NKL | Nuveen Insured California Dividend Advantage Municipal Fund (continued)
| Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
Semitropic Water Storage District, Kern County, California,
Water Banking Revenue Bonds, Series 2004A:
$ 1,315 5.500%, 12/01/20 - SYNCORA GTY Insured 12/14 at 100.00 AA $ 1,395,149
1,415 5.500%, 12/01/21 - SYNCORA GTY Insured 12/14 at 100.00 AA 1,491,636
------------------------------------------------------------------------------------------------------------------------------------
31,285 Total Water and Sewer 31,849,277
------------------------------------------------------------------------------------------------------------------------------------
$ 338,163 Total Investments (cost $329,599,653) - 151.6% 329,289,202
===============---------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (3.4)% (7,385,000)
------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.7% 3,495,818
------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred Shares, at Liquidation Value - (49.9)% (5) (108,250,000)
------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 217,150,020
==================================================================================================================
At least 80% of the Fund's net assets are invested in municipal securities
that guarantee the timely payment of principal and interest. See Notes to
Financial Statements, Footnote 1 - Insurance, for more information.
(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 Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be below investment
grade. The Portfolio of Investments may reflect the ratings on certain
bonds whose insurer has experienced downgrades as of the end of the
reporting period. Please see the Portfolio Manager's Comments for an
expanded discussion of the affect on the Fund of changes to the ratings of
certain bonds in the portfolio resulting from changes to the ratings of
the underlying insurers both during the period and after period end.
(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) Auction Rate Preferred Shares, at Liquidation Value as a percentage of
Total Investments is 32.9%.
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 Notes to
Financial Statements, Footnote 1 - Inverse Floating Rate Securities for
more information.
See accompanying notes to financial statements.
52 Nuveen Investments
NKX | Nuveen Insured California Tax-Free Advantage Municipal Fund
| Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 4.0% (2.7% OF TOTAL INVESTMENTS)
$ 6,070 Golden State Tobacco Securitization Corporation, California, 6/22 at 100.00 BBB $ 3,197,676
Enhanced Tobacco Settlement Asset-Backed Bonds, Series
2007A-2, 0.000%, 6/01/37
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 21.4% (14.6% OF TOTAL INVESTMENTS)
1,800 California Infrastructure Economic Development Bank, Revenue 8/11 at 102.00 A+ 1,810,584
Bonds, Kaiser Hospital Assistance LLC, Series 2001A,
5.550%, 8/01/31
662 California Statewide Communities Development Authority, 7/18 at 100.00 AAA 662,241
Revenue Bonds, Saint Joseph Health System, Trust 2554,
18.134%, 7/01/47 - FSA Insured (IF)
4,000 California Statewide Community Development Authority, Insured 7/17 at 100.00 AAA 3,993,680
Health Facility Revenue Bonds, Catholic Healthcare West,
Series 2008K, 5.500%, 7/01/41 - AGC Insured
1,815 California Statewide Community Development Authority, Revenue 3/16 at 100.00 A+ 1,617,964
Bonds, Kaiser Permanante System, Series 2006, 5.000%,
3/01/41
5,020 California Statewide Community Development Authority, Revenue 3/16 at 100.00 AAA 5,047,660
Bonds, Kaiser Permanente System, 5.000%, 3/01/41 - BHAC
Insured (UB)
4,060 California Statewide Community Development Authority, Revenue No Opt. Call A 3,994,638
Bonds, Sherman Oaks Health System, Series 1998A, 5.000%,
8/01/22 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
17,357 Total Health Care 17,126,767
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.4% (1.0% OF TOTAL INVESTMENTS)
1,165 Poway, California, Housing Revenue Bonds, Revenue Bonds, 5/13 at 102.00 AA- 1,141,211
Poinsettia Mobile Home Park, Series 2003, 5.000%, 5/01/23
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 3.6% (2.5% OF TOTAL INVESTMENTS)
1,000 ABAG Finance Authority for Non-Profit Corporations, 11/12 at 100.00 A 980,460
California, Insured Senior Living Revenue Bonds, Odd
Fellows Home of California, Series 2003A, 5.200%, 11/15/22
2,000 California Health Facilities Financing Authority, 1/13 at 100.00 A 1,917,300
Cal-Mortgage Insured Revenue Bonds, Northern California
Retired Officers Community Corporation - Paradise Valley
Estates, Series 2002, 5.250%, 1/01/26
------------------------------------------------------------------------------------------------------------------------------------
3,000 Total Long-Term Care 2,897,760
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 18.4% (12.6% OF TOTAL INVESTMENTS)
2,000 Butte-Glenn Community College District, Butte and Glenn 8/12 at 101.00 A1 2,018,300
Counties, California, General Obligation Bonds, Series
2002A, 5.000%, 8/01/26 - NPFG Insured
1,030 Fontana Unified School District, San Bernardino County, 8/18 at 100.00 AAA 1,131,579
California, General Obligation Bonds, Trust 2668, 8.829%,
8/01/28 - FSA Insured (IF)
450 Fremont Unified School District, Alameda County, California, 8/12 at 101.00 Aa3 454,919
General Obligation Bonds, Series 2002A, 5.000%, 8/01/25 -
FGIC Insured
2,000 Los Angeles, California, General Obligation Bonds, Series 9/12 at 100.00 AA 2,092,860
2002A, 5.000%, 9/01/22 - NPFG Insured
1,000 Murrieta Valley Unified School District, Riverside County, 9/13 at 100.00 A+ 1,016,650
California, General Obligation Bonds, Series 2003A,
5.000%, 9/01/26 - FGIC Insured
1,000 Murrieta Valley Unified School District, Riverside County, 9/17 at 100.00 AAA 952,950
California, General Obligation Bonds, Series 2007, 4.500%,
9/01/30 - FSA Insured
140 Roseville Joint Union High School District, Placer County, 8/15 at 100.00 AA- 143,742
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 AA 3,102,150
Obligation Bonds, Election of 1998, Series 2000B, 5.125%,
7/01/22 - NPFG Insured
3,855 San Rafael City High School District, Marin County, 8/12 at 100.00 AAA 3,886,033
California, General Obligation Bonds, Series 2003A,
5.000%, 8/01/28 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
14,475 Total Tax Obligation/General 14,799,183
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 53
NKX | Nuveen Insured California Tax-Free Advantage Municipal Fund (continued)
| Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 45.8% (31.3% OF TOTAL INVESTMENTS)
$ 550 Baldwin Park Public Financing Authority, California, Sales 8/13 at 102.00 BBB $ 547,613
Tax and Tax Allocation Bonds, Puente Merced Redevelopment
Project, Series 2003, 5.250%, 8/01/21
1,165 Burbank Public Financing Authority, California, Revenue 12/13 at 100.00 A- 1,123,200
Refunding Bonds, Golden State Redevelopment Project,
Series 2003A, 5.250%, 12/01/22 - AMBAC Insured
4,000 California State Public Works Board, Lease Revenue Bonds, 12/12 at 100.00 A- 3,731,840
Department of General Services, Capital East End Project,
Series 2002A, 5.000%, 12/01/27 - AMBAC Insured
170 Capistrano Unified School District, Orange County, 9/15 at 100.00 A 157,301
California, Special Tax Bonds, Community Facilities
District, Series 2005, 5.000%, 9/01/24 - FGIC Insured
525 Chino Redevelopment Agency, California, Merged Chino 9/16 at 101.00 BBB 428,048
Redevelopment Project Area Tax Allocation Bonds, Series
2006, 5.000%, 9/01/38 - AMBAC Insured
1,610 Folsom Public Financing Authority, California, Special Tax 9/12 at 102.00 N/R 1,517,006
Revenue Bonds, Series 2004A, 5.000%, 9/01/21 - AMBAC
Insured
2,905 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 AAA 2,512,360
Enhanced Tobacco Settlement Revenue Bonds, Drivers Trust
2091, 9.349%, 6/01/45 - AGC Insured (IF)
3,285 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 A- 2,833,280
Tobacco Settlement Asset-Backed Revenue Bonds, Series
2005A, 5.000%, 6/01/45 - AMBAC Insured
1,000 Hesperia Public Financing Authority, California, 9/17 at 100.00 Baa1 763,840
Redevelopment and Housing Projects Tax Allocation Bonds,
Series 2007A, 5.000%, 9/01/37 - SYNCORA GTY Insured
5,540 Irvine Public Facilities and Infrastructure Authority, 9/13 at 100.00 N/R 5,197,019
California, Assessment Revenue Bonds, Series 2003C,
5.000%, 9/02/21 - AMBAC Insured
315 Los Angeles Community Redevelopment Agency, California, 9/15 at 100.00 A2 266,162
Lease Revenue Bonds, Manchester Social Services Project,
Series 2005, 5.000%, 9/01/37 - AMBAC Insured
1,770 Los Angeles Unified School District, California, 10/12 at 100.00 A+ 1,767,841
Certificates 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 AA- 2,003,900
Municipal Improvement Corporation, Series 2003AW, 5.000%,
6/01/33 - AMBAC Insured
1,500 Los Angeles, California, Municipal Improvement Corporation, 1/17 at 100.00 AA- 1,452,960
Lease Revenue Bonds, Police Headquarters, Series 2006A,
4.750%, 1/01/31 - FGIC Insured
1,500 Los Osos, California, Improvement Bonds, Community Services 9/10 at 103.00 A 1,237,845
Wastewater Assessment District 1, Series 2002, 5.000%,
9/02/33 - NPFG Insured
150 Rialto Redevelopment Agency, California, Tax Allocation 9/15 at 100.00 A- 124,388
Bonds, Merged Project Area, Series 2005A, 5.000%,
9/01/35 - SYNCORA GTY Insured
190 Roseville, California, Certificates of Participation, Public 8/13 at 100.00 AA- 177,895
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 AA- 2,996,400
3,300 5.000%, 2/01/32 - AMBAC Insured 2/12 at 100.00 AA- 3,179,253
1,200 San Diego Redevelopment Agency, California, Subordinate Lien 9/09 at 101.00 Baa2 1,089,456
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 AA+ 2,786,038
Refunding Bonds, Civic Center Project, Series 2002B,
5.000%, 6/01/32 - AMBAC Insured
1,000 San Jose Redevelopment Agency, California, Tax Allocation 8/15 at 100.00 A 880,550
Bonds, Merged Project Area, Series 2005A, 5.000%,
8/01/28 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
39,445 Total Tax Obligation/Limited 36,774,195
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 10.2% (7.0% OF TOTAL INVESTMENTS)
5,480 Bay Area Governments Association, California, BART SFO 8/12 at 100.00 N/R 5,399,824
Extension, Airport Premium Fare Revenue Bonds, Series
2002A, 5.000%, 8/01/26 - AMBAC Insured
2,000 Foothill/Eastern Transportation Corridor Agency, California, 1/10 at 100.00 BBB- 1,456,760
Toll Road Revenue Bonds, Series 1995A, 5.000%, 1/01/35
1,300 San Francisco Airports Commission, California, Revenue 5/10 at 101.00 A1 1,304,420
Bonds, San Francisco International Airport, Second Series
2000, Issue 26B, 5.000%, 5/01/25 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
8,780 Total Transportation 8,161,004
------------------------------------------------------------------------------------------------------------------------------------
54 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 20.1% (13.7% OF TOTAL INVESTMENTS) (4)
$ 1,000 Berryessa Union School District, Santa Clara County, 8/12 at 100.00 AAA $ 1,111,570
California, General Obligation Bonds, Series 2003C,
5.000%, 8/01/21 (Pre-refunded 8/01/12) - FSA Insured
California State, General Obligation Bonds, Series 2002:
1,290 5.000%, 4/01/27 (Pre-refunded 4/01/12) - AMBAC Insured 4/12 at 100.00 AAA 1,414,485
2,945 5.250%, 4/01/30 (Pre-refunded 4/01/12) - SYNCORA GTY 4/12 at 100.00 Baa1 (4) 3,247,864
Insured
500 California, General Obligation Bonds, Series 2004, 5.250%, 4/14 at 100.00 AAA 576,510
4/01/34 (Pre-refunded 4/01/14)
1,625 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 1,978,600
Tobacco Settlement Asset-Backed Revenue Bonds, Series
2003A-2, 7.900%, 6/01/42 (Pre-refunded 6/01/13)
2,030 Hacienda La Puente Unified School District, Los Angeles 8/13 at 100.00 AAA 2,315,479
County, California, General Obligation Bonds, Series
2003B, 5.000%, 8/01/27 (Pre-refunded 8/01/13) - FSA
Insured
1,260 Rancho Mirage Joint Powers Financing Authority, California, 7/14 at 100.00 A3 (4) 1,497,586
Revenue Bonds, Eisenhower Medical Center, Series 2004,
5.875%, 7/01/26 (Pre-refunded 7/01/14)
1,220 San Jose Redevelopment Agency, California, Tax Allocation 8/10 at 101.00 A (4) 1,283,855
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 AA- (4) 2,695,012
Series 2002, 5.250%, 11/01/24 (Pre-refunded 11/01/12) -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
14,260 Total U.S. Guaranteed 16,120,961
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 3.1% (2.1% OF TOTAL INVESTMENTS)
1,000 Anaheim Public Finance Authority, California, Second Lien 10/14 at 100.00 A+ 1,054,970
Electric Distribution Revenue Bonds, Series 2004, 5.250%,
10/01/21 - NPFG Insured
945 Long Beach Bond Finance Authority, California, Natural Gas No Opt. Call A 913,021
Purchase Revenue Bonds, Series 2007A, 5.500%, 11/15/37
275 Los Angeles Department of Water and Power, California, Power 7/13 at 100.00 AA- 294,580
System Revenue Bonds, Series 2003A-2, 5.000%, 7/01/21 -
NPFG Insured
310 Merced Irrigation District, California, Electric System 9/15 at 100.00 N/R 260,158
Revenue Bonds, Series 2005, 5.125%, 9/01/31 - SYNCORA GTY
Insured
------------------------------------------------------------------------------------------------------------------------------------
2,530 Total Utilities 2,522,729
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 13.9% (9.5% OF TOTAL INVESTMENTS)
1,000 Castaic Lake Water Agency, California, Certificates of 8/16 at 100.00 AA- 958,580
Participation, Series 2006C, 5.000%, 8/01/36 - NPFG
Insured
750 Fortuna Public Finance Authority, California, Water Revenue 10/16 at 100.00 AAA 752,633
Bonds, Series 2006, 5.000%, 10/01/36 - FSA Insured
215 Healdsburg Public Financing Authority, California, 4/16 at 100.00 AA- 205,555
Wastewater Revenue Bonds, Series 2006, 5.000%, 4/01/36 -
NPFG Insured
770 Manteca Financing Authority, California, Sewerage Revenue 12/13 at 100.00 A2 724,501
Bonds, Series 2003B, 5.000%, 12/01/33 - NPFG Insured
170 Marina Coast Water District, California, Enterprise 6/16 at 100.00 A+ 163,873
Certificate of Participation, Series 2006, 5.000%,
6/01/31 - NPFG Insured
San Diego Public Facilities Financing Authority, California,
Subordinate Lien Water Revenue Bonds, Series 2002:
3,000 5.000%, 8/01/22 - NPFG Insured 8/12 at 100.00 A+ 3,043,830
2,500 5.000%, 8/01/23 - NPFG Insured 8/12 at 100.00 A+ 2,526,900
1,180 South Feather Water and Power Agency, California, Water 4/13 at 100.00 A 1,131,030
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 1,612,512
Wastewater Revenue Bonds, Series 2001, 5.000%, 10/01/26 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
11,185 Total Water and Sewer 11,119,414
------------------------------------------------------------------------------------------------------------------------------------
$ 118,267 Total Long-Term Investments (cost $116,213,482) - 141.9% 113,860,900
===============---------------------------------------------------------------------------------------------------------------------
Nuveen Investments 55
NKX | Nuveen Insured California Tax-Free Advantage Municipal Fund (continued)
| Portfolio of Investments August 31, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 4.4% (3.0% OF TOTAL INVESTMENTS)
TAX OBLIGATIONS/GENERAL - 4.4% (3.0% OF TOTAL INVESTMENTS)
$ 3,500 California, General Obligation Bonds, Variable Rate Demand 9/09 at 100.00 A-1 $ 3,500,000
Obligations, Series 2003C-1, 0.210%, 5/01/33 (5)
===============---------------------------------------------------------------------------------------------------------------------
Total Short-Term Investments (cost $3,500,000) 3,500,000
------------------------------------------------------------------------------------------------------------------
Total Investments (cost $119,713,482) - 146.3% 117,360,900
------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (4.2)% (3,360,000)
------------------------------------------------------------------------------------------------------------------
Variable Rate Demand Preferred Shares, at Liquidation Value - (44.2)% (6) (35,500,000)
------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.1% 1,725,265
------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 80,226,165
==================================================================================================================
At least 80% of the Fund's net assets are invested in municipal securities
that guarantee the timely payment of principal and interest. See Notes to
Financial Statements, Footnote 1 - Insurance, for more information.
(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 Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be below investment
grade.
The Portfolio of Investments may reflect the ratings on certain bonds
whose insurer has experienced downgrades as of the end of the reporting
period. Please see the Portfolio Manager's Comments for an expanded
discussion of the affect on the Fund of changes to the ratings of certain
bonds in the portfolio resulting from changes to the ratings of the
underlying insurers both during the period and after period end.
(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) Variable Rate Demand Preferred Shares, at Liquidation Value as a
percentage of Total Investments is 30.2%.
N/R Not rated.
(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 Notes to
Financial Statements, Footnote 1 - Inverse Floating Rate Securities for
more information.
See accompanying notes to financial statements.
56 Nuveen Investments
| Statement of
| Assets & Liabilities August 31, 2009 (Unaudited)
INSURED CALIFORNIA INSURED CALIFORNIA CALIFORNIA PREMIUM CALIFORNIA DIVIDEND
PREMIUM INCOME PREMIUM INCOME 2 INCOME ADVANTAGE
(NPC) (NCL) (NCU) (NAC)
-------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost
$129,408,134, $262,331,787,
$117,506,800 and $478,922,793,
respectively) $ 132,338,597 $ 263,021,193 $ 116,030,077 $ 468,048,682
Cash 3,952,101 4,714,920 -- 96,507
Receivables:
Interest 2,328,909 3,530,725 1,580,375 7,848,803
Investments sold -- -- 5,115,450 61,800
Deferred offering costs -- -- -- --
Other assets 21,217 63,779 13,655 124,660
-------------------------------------------------------------------------------------------------------------------------
Total assets 138,640,824 271,330,617 122,739,557 476,180,452
-------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- -- 1,173,904 --
Floating rate obligations -- 17,880,000 6,650,000 28,545,000
Payables:
Auction Rate Preferred share
dividends 3,950 5,629 4,272 4,513
Common share dividends 353,941 753,821 304,834 1,502,123
Variable Rate Demand Preferred shares,
at liquidation value -- -- -- --
Accrued expenses:
Management fees 74,601 142,278 61,691 253,726
Other 40,210 86,635 38,786 136,824
-------------------------------------------------------------------------------------------------------------------------
Total liabilities 472,702 18,868,363 8,233,487 30,442,186
-------------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred shares, at
liquidation value 45,000,000 79,825,000 38,875,000 135,525,000
-------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 93,168,122 $ 172,637,254 $ 75,631,070 $ 310,213,266
=========================================================================================================================
Common shares outstanding 6,446,532 12,662,870 5,737,288 23,480,254
=========================================================================================================================
Net asset value per Common share
outstanding (net assets applicable
to Common shares,divided by Common
shares outstanding) $ 14.45 $ 13.63 $ 13.18 $ 13.21
=========================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES
CONSIST OF:
-------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 64,465 $ 126,629 $ 57,373 $ 234,803
Paid-in surplus 89,263,583 175,646,671 77,944,193 333,179,030
Undistributed (Over-distribution of)
net investment income 902,184 2,240,801 673,286 3,366,383
Accumulated net realized gain (loss)
from investments and derivative
transactions 7,427 (6,066,253) (1,567,059) (15,692,839)
Net unrealized appreciation
(depreciation ) of investments 2,930,463 689,406 (1,476,723) (10,874,111)
-------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 93,168,122 $ 172,637,254 $ 75,631,070 $ 310,213,266
=========================================================================================================================
Authorized shares:
Common 200,000,000 200,000,000 Unlimited Unlimited
Auction Rate Preferred and Variable
Rate Demand Preferred 1,000,000 1,000,000 Unlimited Unlimited
=========================================================================================================================
See accompanying notes to financial statements.
Nuveen Investments 57
| Statement of
| Assets & Liabilities (continued) August 31, 2009 (Unaudited)
CALIFORNIA DIVIDEND CALIFORNIA DIVIDEND INSURED CALIFORNIA INSURED CALIFORNIA
ADVANTAGE 2 ADVANTAGE 3 DIVIDEND ADVANTAGE TAX-FREE ADVANTAGE
(NVX) (NZH) (NKL) (NKX)
---------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost
$312,967,337, $483,627,305,
$329,599,653 and $119,713,482,
respectively) $ 307,256,297 $ 457,692,359 $ 329,289,202 $ 117,360,900
Cash 385,339 1,452,258 499,316 134,925
Receivables:
Interest 4,497,386 7,329,400 4,184,725 1,493,077
Investments sold 36,050 66,950 -- --
Deferred offering costs -- -- -- 512,574
Other assets 63,151 110,763 65,379 290
---------------------------------------------------------------------------------------------------------------------------
Total assets 312,238,223 466,651,730 334,038,622 119,501,766
---------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- -- -- --
Floating rate obligations 8,905,000 11,100,000 7,385,000 3,360,000
Payables:
Auction Rate Preferred share
dividends 5,687 12,393 5,473 --
Common share dividends 991,630 1,558,240 1,017,516 356,987
Variable Rate Demand Preferred
shares, at liquidation value -- -- -- 35,500,000
Accrued expenses:
Management fees 134,654 191,803 135,635 48,419
Other 90,707 138,795 94,978 10,195
---------------------------------------------------------------------------------------------------------------------------
Total liabilities 10,127,678 13,001,231 8,638,602 39,275,601
---------------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred shares, at
liquidation value 98,275,000 154,075,000 108,250,000 --
---------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 203,835,545 $ 299,575,499 $ 217,150,020 $ 80,226,165
===========================================================================================================================
Common shares outstanding 14,746,722 24,119,434 15,253,305 5,886,667
===========================================================================================================================
Net asset value per Common share
outstanding (net assets
applicable to Common shares,
divided by Common shares
outstanding) $ 13.82 $ 12.42 $ 14.24 $ 13.63
===========================================================================================================================
NET ASSETS APPLICABLE TO COMMON
SHARES CONSIST OF:
---------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per
share $ 147,467 $ 241,194 $ 152,533 $ 58,867
Paid-in surplus 209,634,495 342,700,428 216,675,642 83,074,471
Undistributed (Over-distribution of)
net investment income 2,441,223 3,583,048 2,274,665 567,252
Accumulated net realized gain (loss)
from investments and derivative
transactions (2,676,600) (21,014,225) (1,642,369) (1,121,843)
Net unrealized appreciation
(depreciation ) of investments (5,711,040) (25,934,946) (310,451) (2,352,582)
---------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 203,835,545 $ 299,575,499 $ 217,150,020 $ 80,226,165
===========================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited Unlimited
Auction Rate Preferred and
Variable Rate Demand Preferred Unlimited Unlimited Unlimited Unlimited
===========================================================================================================================
See accompanying notes to financial statements.
58 Nuveen Investments
| Statement of
| Operations Six Months ended August 31, 2009 (Unaudited)
INSURED CALIFORNIA INSURED CALIFORNIA CALIFORNIA PREMIUM CALIFORNIA DIVIDEND
PREMIUM INCOME PREMIUM INCOME 2 INCOME ADVANTAGE
(NPC) (NCL) (NCU) (NAC)
---------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 3,793,701 $ 7,473,025 $ 3,153,013 $ 13,924,826
---------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 442,687 815,393 369,057 1,429,043
Auction fees 41,918 74,358 37,788 126,242
Dividend disbursing agent fees 5,041 10,082 5,041 10,082
Shareholders' servicing agent fees
and expenses 3,653 5,875 2,699 1,934
Interest expense and amortization of
offering costs -- 84,248 30,691 88,575
Liquidity fees -- -- -- --
Custodian's fees and expenses 13,736 29,580 15,965 39,148
Directors'/Trustees' fees and expenses 2,289 4,162 1,906 7,240
Professional fees 9,583 11,992 7,529 14,260
Shareholders' reports - printing and
mailing expenses 16,462 27,568 14,729 39,744
Stock exchange listing fees 4,645 4,647 411 4,636
Investor relations expense 3,853 6,979 3,401 10,320
Other expenses 10,271 12,669 8,661 14,137
---------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee
credit and expense reimbursement 554,138 1,087,553 497,878 1,785,361
Custodian fee credit (76) (182) (57) (64)
Expense reimbursement -- -- -- (92,690)
---------------------------------------------------------------------------------------------------------------------------
Net expenses 554,062 1,087,371 497,821 1,692,607
---------------------------------------------------------------------------------------------------------------------------
Net investment income 3,239,639 6,385,654 2,655,192 12,232,219
---------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments 21,368 (35,904) 194,414 (344,297)
Forward swaps -- 2,508,000 -- --
Change in net unrealized appreciation
(depreciation) of:
Investments 2,059,922 7,999,642 3,818,550 24,033,125
Forward swaps -- (1,751,141) -- --
---------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain
(loss) 2,081,290 8,720,597 4,012,964 23,688,828
---------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO AUCTION RATE
PREFERRED SHAREHOLDERS
From net investment income (112,636) (197,417) (124,902) (337,209)
From accumulated net realized gains (125,550) (219,424) -- (387,199)
---------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Auction Rate Preferred
shareholders (238,186) (416,841) (124,902) (724,408)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
operations $ 5,082,743 $ 14,689,410 $ 6,543,254 $ 35,196,639
===========================================================================================================================
See accompanying notes to financial statements.
Nuveen Investments 59
| Statement of
| Operations (continued) Six Months Ended August 31, 2009 (Unaudited)
CALIFORNIA DIVIDEND CALIFORNIA DIVIDEND INSURED CALIFORNIA INSURED CALIFORNIA
ADVANTAGE 2 ADVANTAGE 3 DIVIDEND ADVANTAGE TAX-FREE ADVANTAGE
(NVX) (NZH) (NKL) (NKX)
---------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 8,985,015 $ 13,454,465 $ 9,152,527 $ 3,086,004
---------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 972,753 1,437,812 1,033,924 373,222
Auction fees 100,755 143,521 100,835 18,144
Dividend disbursing agent fees 10,082 10,082 10,082 5,383
Shareholders' servicing agent fees
and expenses 803 1,426 884 432
Interest expense and amortization of
offering costs 38,086 52,341 34,225 110,231
Liquidity fees -- -- -- 130,613
Custodian's fees and expenses 28,966 38,485 36,534 15,032
Directors'/Trustees' fees and expenses 5,127 7,382 5,361 1,914
Professional fees 13,091 15,213 13,421 5,971
Shareholders' reports - printing and
mailing expenses 27,876 40,062 29,195 13,298
Stock exchange listing fees 1,053 1,717 1,088 419
Investor relations expense 7,462 10,177 7,665 3,092
Other expenses 11,833 14,424 12,862 4,970
---------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee
credit and expense reimbursement 1,217,887 1,772,642 1,286,076 682,721
Custodian fee credit (87) (96) (21) (18)
Expense reimbursement (165,055) (340,612) (256,566) (92,181)
---------------------------------------------------------------------------------------------------------------------------
Net expenses 1,052,745 1,431,934 1,029,489 590,522
---------------------------------------------------------------------------------------------------------------------------
Net investment income 7,932,270 12,022,531 8,123,038 2,495,482
---------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments 89,873 (22,163) 2,402 (4,642)
Forward swaps -- (1,938,000) -- --
Change in net unrealized appreciation
(depreciation) of:
Investments 11,700,542 18,684,791 9,219,618 4,252,040
Forward swaps -- 2,841,843 -- --
---------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain
(loss) 11,790,415 19,566,471 9,222,020 4,247,398
---------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO AUCTION RATE
PREFERRED SHAREHOLDERS
From net investment income (331,247) (469,593) (333,096) --
From accumulated net realized gains -- -- -- --
---------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Auction Rate Preferred
shareholders (331,247) (469,593) (333,096) --
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
operations $ 19,391,438 $ 31,119,409 $ 17,011,962 $ 6,742,880
===========================================================================================================================
See accompanying notes to financial statements.
60 Nuveen Investments
| Statement of
| Changes in Net Assets(Unaudited)
INSURED CALIFORNIA PREMIUM INCOME (NPC) INSURED CALIFORNIA PREMIUM INCOME 2 (NCL)
--------------------------------------------------- ---------------------------------------------------
SIX MONTHS SIX MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED YEAR ENDED ENDED ENDED YEAR ENDED
8/31/09 2/28/09 8/31/08 8/31/09 2/28/09 8/31/08
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 3,239,639 $ 3,021,939 $ 6,128,739 $ 6,385,654 $ 5,606,923 $ 12,102,624
Net realized gain
(loss) from:
Investments 21,368 78,582 328,360 (35,904) (7,018,034) 1,445,377
Forward swaps -- -- 863,429 2,508,000 -- 856,758
Futures -- -- -- -- (913,786) --
Change in net
unrealized
appreciation
(depreciation) of:
Investments 2,059,922 (4,835,228) (1,420,724) 7,999,642 (8,290,218) (7,171,193)
Forward swaps -- -- (364,728) (1,751,141) 1,751,141 (656,230)
Futures -- -- -- -- -- --
Distributions to
Auction Rate
Preferred
shareholders:
From net investment
income (112,636) (684,653) (1,447,316) (197,417) (1,221,762) (3,061,483)
From accumulated net
realized gains (125,550) (157,410) (25,344) (219,424) (278,398) --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
applicable to Common
shares from
operations 5,082,743 (2,576,770) 4,062,416 14,689,410 (10,364,134) 3,515,853
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON
SHAREHOLDERS
From net investment
income (2,365,908) (2,344,919) (4,689,975) (4,761,240) (4,271,704) (8,125,762)
From accumulated net
realized gains -- (934,738) (86,562) -- (1,819,712) --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets
applicable to Common
shares from
distributions to
Common shareholders (2,365,908) (3,279,657) (4,776,537) (4,761,240) (6,091,416) (8,125,762)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE
TRANSACTIONS
Common shares:
Net proceeds from
shares issued to
shareholders due
to reinvestment of
distributions -- -- -- -- -- --
Repurchased (80,051) (74,494) -- (122,212) (446,744) --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
applicable to Common
shares from capital
share transactions (80,051) (74,494) -- (122,212) (446,744) --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
applicable to Common
shares 2,636,784 (5,930,921) (714,121) 9,805,958 (16,902,294) (4,609,909)
Net assets applicable
to Common shares at
the beginning of
period 90,531,338 96,462,259 97,176,380 162,831,296 179,733,590 184,343,499
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable
to Common shares at
the end of period $ 93,168,122 $ 90,531,338 $ 96,462,259 $ 172,637,254 $ 162,831,296 $ 179,733,590
====================================================================================================================================
Undistributed
(Over-distribution
of) net investment
income at the end of
period $ 902,184 $ 141,089 $ 149,112 $ 2,240,801 $ 813,804 $ 707,293
====================================================================================================================================
See accompanying notes to financial statements.
Nuveen Investments 61
| Statement of
| Changes in Net Assets (Unaudited) (continued)
CALIFORNIA PREMIUM INCOME (NCU) CALIFORNIA DIVIDEND ADVANTAGE (NAC)
--------------------------------------------- ---------------------------------------------
SIX MONTHS SIX MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED YEAR ENDED ENDED ENDED YEAR ENDED
8/31/09 2/28/09 8/31/08 8/31/09 2/28/09 8/31/08
------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 2,655,192 $ 2,462,997 $ 5,317,766 $ 12,232,219 $ 11,393,398 $ 24,047,246
Net realized gain
(loss) from:
Investments 194,414 (1,743,990) 118,683 (344,297) (16,935,690) 4,832,689
Forward swaps -- -- 239,634 -- -- 4,168,843
Futures -- -- -- -- -- --
Change in net
unrealized
appreciation
(depreciation) of:
Investments 3,818,550 (5,711,715) (2,804,244) 24,033,125 (31,383,162) (18,634,531)
Forward swaps -- -- 1,018 -- -- (2,275,676)
Futures -- -- -- -- -- --
Distributions to
Auction Rate
Preferred
shareholders:
From net investment
income (124,902) (599,218) (1,399,028) (337,209) (2,075,909) (5,502,755)
From accumulated net
realized gains -- (13,364) -- (387,199) (449,153) (260,925)
------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
applicable to Common
shares from
operations 6,543,254 (5,605,290) 1,473,829 35,196,639 (39,450,516) 6,374,891
------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON
SHAREHOLDERS
From net investment
income (1,945,257) (1,923,138) (3,707,671) (9,204,260) (8,875,536) (17,328,427)
From accumulated net
realized gains -- (35,229) -- -- (6,184,699) (838,245)
------------------------------------------------------------------------------------------------------------------------
Decrease in net assets
applicable to Common
shares from
distributions to
Common shareholders (1,945,257) (1,958,367) (3,707,671) (9,204,260) (15,060,235) (18,166,672)
------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE
TRANSACTIONS
Common shares:
Net proceeds from
shares issued to
shareholders due
to reinvestment of
distributions -- -- -- -- -- --
Repurchased (226,736) (142,381) -- -- -- --
------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
applicable to Common
shares from capital
share transactions (226,736) (142,381) -- -- -- --
------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
applicable to Common
shares 4,371,261 (7,706,038) (2,233,842) 25,992,379 (54,510,751) (11,791,781)
Net assets applicable
to Common shares at
the beginning of
period 71,259,809 78,965,847 81,199,689 284,220,887 338,731,638 350,523,419
------------------------------------------------------------------------------------------------------------------------
Net assets applicable
to Common shares at
the end of period $ 75,631,070 $ 71,259,809 $ 78,965,847 $ 310,213,266 $ 284,220,887 $ 338,731,638
========================================================================================================================
Undistributed
(Over-distribution
of) net investment
income at the end of
period $ 673,286 $ 88,253 $ 150,354 $ 3,366,383 $ 675,633 $ 234,601
========================================================================================================================
62 Nuveen Investments
CALIFORNIA DIVIDEND ADVANTAGE 2 (NVX) CALIFORNIA DIVIDEND ADVANTAGE 3 (NZH)
--------------------------------------------- ---------------------------------------------
SIX MONTHS SIX MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED YEAR ENDED ENDED ENDED YEAR ENDED
8/31/09 2/28/09 8/31/08 8/31/09 2/28/09 8/31/08
------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 7,932,270 $ 7,567,859 $ 14,898,561 $ 12,022,531 $ 12,039,038 $ 24,759,707
Net realized gain
(loss) from:
Investments 89,873 (2,624,444) (313,737) (22,163) (10,532,016) (978,786)
Forward swaps -- -- 1,314,381 (1,938,000) -- (1,478,000)
Futures -- -- -- -- (1,011,691) (291,364)
Change in net
unrealized
appreciation
(depreciation) of:
Investments 11,700,542 (19,142,795) (6,006,208) 18,684,791 (37,615,750) (14,054,312)
Forward swaps -- -- (396,451) 2,841,843 (2,246,298) 57,314
Futures -- -- -- -- -- --
Distributions to
Auction Rate
Preferred
shareholders:
From net investment
income (331,247) (1,602,421) (3,691,110) (469,593) (2,211,134) (6,076,255)
From accumulated net
realized gains -- (186,582) -- -- -- --
------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
applicable to Common
shares from
operations 19,391,438 (15,988,383) 5,805,436 31,119,409 (41,577,851) 1,938,304
------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON
SHAREHOLDERS
From net investment
income (6,046,407) (5,371,458) (10,247,217) (9,599,535) (8,904,831) (17,085,692)
From accumulated net
realized gains -- (517,910) -- -- -- --
------------------------------------------------------------------------------------------------------------------------
Decrease in net assets
applicable to Common
shares from
distributions to
Common shareholders (6,046,407) (5,889,368) (10,247,217) (9,599,535) (8,904,831) (17,085,692)
------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE
TRANSACTIONS
Common shares:
Net proceeds from
shares issued to
shareholders due
to reinvestment of
distributions -- -- -- -- -- --
Repurchased (333,589) (188,113) -- -- (120,362) --
------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
applicable to Common
shares from capital
share transactions (333,589) (188,113) -- -- (120,362) --
------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
applicable to Common
shares 13,011,442 (22,065,864) (4,441,781) 21,519,874 (50,603,044) (15,147,388)
Net assets applicable
to Common shares at
the beginning of
period 190,824,103 212,889,967 217,331,748 278,055,625 328,658,669 343,806,057
------------------------------------------------------------------------------------------------------------------------
Net assets applicable
to Common shares at
the end of period $ 203,835,545 $ 190,824,103 $ 212,889,967 $ 299,575,499 $ 278,055,625 $ 328,658,669
========================================================================================================================
Undistributed
(Over-distribution
of) net investment
income at the end of
period $ 2,441,223 $ 886,607 $ 265,440 $ 3,583,048 $ 1,629,645 $ 718,052
========================================================================================================================
See accompanying notes to financial statements.
Nuveen Investments 63
| Statement of
| Changes in Net Assets (Unaudited) (continued)
INSURED CALIFORNIA DIVIDEND ADVANTAGE (NKL) INSURED CALIFORNIA TAX-FREE ADVANTAGE (NKX)
--------------------------------------------- ---------------------------------------------
SIX MONTHS SIX MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED YEAR ENDED ENDED ENDED YEAR ENDED
8/31/09 2/28/09 8/31/08 8/31/09 2/28/09 8/31/08
------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 8,123,038 $ 7,640,002 $ 15,678,470 $ 2,495,482 $ 2,267,947 $ 5,733,820
Net realized gain
(loss) from:
Investments 2,402 (1,321,731) 1,337,028 (4,642) (1,135,147) 1,101,623
Forward swaps -- -- 731,015 -- -- 128,891
Futures -- -- -- -- -- --
Change in net
unrealized
appreciation
(depreciation) of:
Investments 9,219,618 (14,959,271) (6,994,006) 4,252,040 (6,558,916) (3,013,642)
Forward swaps -- -- (24,419) -- -- (12,888)
Futures -- -- -- -- -- --
Distributions to
Auction Rate
Preferred
shareholders:
From net investment
income (333,096) (1,586,640) (3,886,043) -- (13,824) (1,400,428)
From accumulated net
realized gains -- (201,085) (116,419) -- (42,336) --
------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
applicable to Common
shares from
operations 17,011,962 (10,428,725) 6,725,626 6,742,880 (5,482,276) 2,537,376
------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON
SHAREHOLDERS
From net investment
income (6,177,589) (5,686,357) (10,952,422) (2,178,067) (2,083,880) (4,167,394)
From accumulated net
realized gains -- (568,639) (340,878) -- (303,752) --
------------------------------------------------------------------------------------------------------------------------
Decrease in net assets
applicable to Common
shares from
distributions to
Common shareholders (6,177,589) (6,254,996) (11,293,300) (2,178,067) (2,387,632) (4,167,394)
------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE
TRANSACTIONS
Common shares:
Net proceeds from
shares issued to
shareholders due
to reinvestment of
distributions -- -- -- -- -- 17,615
Repurchased (151,512) (204,888) -- -- -- --
------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
applicable to Common
shares from capital
share transactions (151,512) (204,888) -- -- -- 17,615
------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
applicable to Common
shares 10,682,861 (16,888,609) (4,567,674) 4,564,813 (7,869,908) (1,612,403)
Net assets applicable
to Common shares at
the beginning of
period 206,467,159 223,355,768 227,923,442 75,661,352 83,531,260 85,143,663
------------------------------------------------------------------------------------------------------------------------
Net assets applicable
to Common shares at
the end of period $ 217,150,020 $ 206,467,159 $ 223,355,768 $ 80,226,165 $ 75,661,352 $ 83,531,260
========================================================================================================================
Undistributed
(Over-distribution
of) net investment
income at the end of
period $ 2,274,665 $ 662,312 $ 310,679 $ 567,252 $ 249,837 $ 51,473
========================================================================================================================
See accompanying notes to financial statements.
64 Nuveen Investments
| Statement of
| Cash Flows Six Months ended August 31, 2009 (Unaudited)
INSURED CALIFORNIA CALIFORNIA PREMIUM INSURED CALIFORNIA
PREMIUM INCOME 2 INCOME TAX-FREE ADVANTAGE
(NCL) (NCU) (NKX)
-----------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE
TO COMMON SHARES FROM OPERATIONS $ 14,689,410 $ 6,543,254 $ 6,742,880
Adjustments to reconcile the net increase
(decrease) in net assets applicable to Common
shares from operations to net cash provided
by (used in) operating activities:
Purchases of investments (2,253,922) (7,255,271) (1,051,668)
Proceeds from sales and maturities of
investments 1,850,000 6,975,450 53,924
Proceeds from (Purchases of) short-term
investments, net -- 4,500,000 500,000
Proceeds from (Payments for) closed forward
swaps 2,508,000 -- --
Amortization (Accretion) of premiums and
discounts, net (191,827) 29,642 (93,931)
(Increase) Decrease in receivable for interest (46,640) (22,102) (10,673)
(Increase) Decrease in receivable for
investments sold 175,000 (3,075,450) --
(Increase) Decrease in other assets (39,129) (7,366) 136
Increase (Decrease) in payable for Auction
Rate Preferred share dividends (283,339) (14,207) --
Increase (Decrease) in accrued management fees 21,456 5,327 6,377
Increase (Decrease) in accrued other
liabilities (15,872) 12,503 (5,443)
Net realized (gain) loss from investments 35,904 (194,414) 4,642
Net realized (gain) loss from forward swaps (2,508,000) -- --
Change in net unrealized (appreciation)
depreciation of investments (7,999,642) (3,818,550) (4,252,040)
Change in net unrealized (appreciation)
depreciation of forward swaps 1,751,141 -- --
Taxes paid on undistributed capital gains (25,272) -- (3,184)
-----------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) operating
activities 7,667,268 3,678,816 1,891,020
-----------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES
Increase (Decrease) in cash overdraft balance -- 1,173,904 --
Increase (Decrease) in floating rate obligations (2,180,000) (1,070,000) --
Cash distributions paid to Common shareholders (4,660,241) (1,939,097) (2,156,226)
Increase (Decrease) in payable for Common shares
repurchased -- (29,503) --
Cost of Common shares repurchased (122,212) (226,736) --
(Increase) Decrease in deferred offering costs -- -- 7,458
Increase (Decrease) in payable for offering costs -- -- (83,263)
Increase (Decrease) in Auction Rate Preferred
shares, at liquidation value -- (2,000,000) --
-----------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) financing
activities (6,962,453) (4,091,432) (2,232,031)
-----------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN CASH 704,815 (412,616) (341,011)
Cash at beginning of period 4,010,105 412,616 475,936
-----------------------------------------------------------------------------------------------------------------
CASH AT END OF PERIOD $ 4,714,920 $ -- $ 134,925
=================================================================================================================
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid for interest (excluding amortization of offering costs, where
applicable) was as follows:
INSURED CALIFORNIA CALIFORNIA PREMIUM INSURED CALIFORNIA
PREMIUM INCOME 2 INCOME TAX-FREE ADVANTAGE
(NCL) (NCU) (NKX)
-----------------------------------------------------------------------------------------------------------------
$ 84,248 $ 30,691 $ 101,327
=================================================================================================================
See accompanying notes to financial statements.
Nuveen Investments 65
| Notes to
| Financial Statements(Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
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) (collectively,
the "Funds"). 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 NYSE Amex. 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 portfolio of municipal obligations issued by state and
local government authorities within the state of California or certain U.S.
territories.
During the prior fiscal period, the Board of Directors/Trustees of the Funds
approved a change in the Funds' fiscal and tax year ends from August 31 to
February 28/29.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with US
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. Prices
of forward swap contracts 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 of such a price,
at the mean of the bid and asked prices. When market price quotes are not
readily available (which is usually the case for municipal securities), the
pricing service or, in the absence of a pricing service for a particular
investment or derivative instrument, the Board of Directors/Trustees of the
Fund, or its designee, may establish fair value using a wide variety of market
data including yields or prices of investments of comparable quality, type of
issue, coupon, maturity and rating, market quotes or indications of value from
security dealers, evaluations of anticipated cash flows or collateral, general
market conditions and other information and analysis, including the obligor's
credit characteristics considered relevant. Temporary investments in securities
that have variable rate and demand features qualifying them as short-term
investments are valued at amortized cost, which approximates 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 August 31, 2009, there
were no such outstanding purchase commitments in any of the Funds.
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
Investment income also includes paydown gains and losses, if any.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute substantially all of its net investment income and net
capital gains to shareholders and to otherwise comply with the requirements of
Subchapter M of the Internal Revenue Code applicable to regulated investment
companies. Therefore, no federal income tax provision is required. Furthermore,
each Fund intends to satisfy conditions which will enable interest from
municipal securities, which is exempt from regular federal and California state
income taxes, and in the case of Insured
66 Nuveen Investments
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.
For all open tax years and all major taxing jurisdictions, management of the
Funds has concluded that there are no significant uncertain tax positions that
would require recognition in the financial statements. Open tax years are those
that are open for examination by taxing authorities (i.e., generally the last
four tax year ends and the interim tax period since then). Furthermore,
management of the Funds is also not aware of any tax positions for which it is
reasonably possible that the total amounts of unrecognized tax benefits will
significantly change in the next twelve months.
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 at least 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 US
generally accepted accounting principles.
Auction Rate Preferred Shares
The following Funds have issued and outstanding Auction Rate Preferred shares,
$25,000 stated value per share, as a means of effecting financial leverage. Each
Fund's Auction Rate 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. As of August 31, 2009, the number of
Auction Rate 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 -- -- 1,555 --
Series T 1,800 1,597 -- --
Series TH -- 1,596 -- 2,710
Series F -- -- -- 2,711
==========================================================================
Total 1,800 3,193 1,555 5,421
==========================================================================
INSURED
CALIFORNIA CALIFORNIA CALIFORNIA
DIVIDEND DIVIDEND DIVIDEND
ADVANTAGE 2 ADVANTAGE 3 ADVANTAGE
(NVX) (NZH) (NKL)
--------------------------------------------------------------------------
Number of shares:
Series M 1,965 3,081 --
Series T -- -- 2,165
Series TH -- 3,082 --
Series F 1,966 -- 2,165
--------------------------------------------------------------------------
Total 3,931 6,163 4,330
==========================================================================
Beginning in February 2008, more shares for sale were submitted in the regularly
scheduled auctions for the Auction Rate Preferred shares issued by the Funds
than there were offers to buy. This meant that these auctions "failed to clear,"
and that many Auction Rate Preferred shareholders who wanted to sell their
shares in these auctions were unable to do so. Auction Rate Preferred
shareholders unable to sell their shares received distributions at the "maximum
rate" applicable to failed auctions as calculated in accordance with the
pre-established terms of the Auction Rate Preferred shares.
Nuveen Investments 67
| Notes to
| Financial Statements (Unaudited) (continued)
These developments have generally not affected the portfolio management or
investment policies of the Funds. However, one continuing implication of these
auction failures for Common shareholders is that the Funds' cost of leverage
likely has been incrementally higher at times, than it otherwise might have been
had the auctions continued to be successful. As a result, the Funds' future
Common share earnings may likely have been incrementally lower than they
otherwise might have been. As of August 31, 2009, the aggregate amount of
outstanding Auction Rate Preferred shares redeemed by each Fund is as follows:
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
PREMIUM PREMIUM PREMIUM DIVIDEND
INCOME INCOME 2 INCOME ADVANTAGE
(NPC) (NCL) (NCU) (NAC)
-----------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred shares redeemed, at liquidation value $ -- $15,175,000 $4,125,000 $39,475,000
=======================================================================================================================
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
DIVIDEND DIVIDEND DIVIDEND TAX-FREE
ADVANGTAGE 2 ADVANTAGE 3 ADVANTAGE ADVANTAGE
(NVX) (NZH) (NKL) (NKX)
-----------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred shares redeemed, at liquidation value $11,725,000 $32,925,000 $9,750,000 $45,000,000
=======================================================================================================================
Effective May 1, 2009, auction participation fees with respect to auctions that
have failed have been reduced from 25 bps (annualized) to 15 bps (annualized).
All auction participants have signed new agreements incorporating this change.
Variable Rate Demand Preferred Shares
On August 7, 2008, Insured California Tax-Free Advantage (NKX) issued 355 Series
1 Variable Rate Demand Preferred shares, $100,000 liquidation value per share,
in a privately negotiated offering. Proceeds of this offering along with the
proceeds from the Fund's creation of tender option bonds (TOBs), also known as
"floaters" or floating rate obligations, were used to redeem all of the Fund's
outstanding Auction Rate Preferred shares totaling $45,000,000. The Variable
Rate Demand Preferred shares were offered to institutional buyers as defined
pursuant to Rule 144A under the Securities Act of 1933, have a maturity date of
August 1, 2038 and include a liquidity feature that allows the Variable Rate
Demand Preferred shareholders to have their shares purchased by the liquidity
provider in the event that sell orders are not matched with purchase orders in a
remarketing. Dividends on the Variable Rate Demand Preferred shares (which are
treated as interest payments for financial reporting purposes) are set weekly at
a rate established by a remarketing agent; therefore, the liquidation value of
the Variable Rate Demand Preferred shares approximates fair value.
Subject to certain conditions, Variable Rate Demand Preferred shares may be
redeemed, in whole or in part, at any time at the option of the Fund. The Fund
may also redeem certain of the Variable Rate Demand Preferred shares if the Fund
fails to maintain certain asset coverage requirements and such failures are not
cured by the applicable cure date. The redemption price per share is equal to
the sum of the liquidation value per share plus any accumulated but unpaid
dividends.
Insured California Tax-Free Advantage (NKX) had all of its $35,500,000 Variable
Rate Demand Preferred shares outstanding during the six months ended August 31,
2009, with an annualized interest rate of 0.47%.
For financial reporting purposes only, the liquidation value of Variable Rate
Demand Preferred shares is recognized as a liability on the Statement of Assets
and Liabilities and the dividends paid on the Variable Rate Demand Preferred
shares are included as a component of "Interest expense and amortization of
offering costs" on the Statement of Operations. In addition to interest expense,
the Fund also paid a per annum liquidity fee which is recognized as "Liquidity
fees" on the Statement of Operations.
Insurance
Except to the extent that each of Insured California Premium Income (NPC) and
Insured California Premium Income 2 (NCL) invests in temporary investments, all
of the net assets of each Fund will be invested in municipal securities that are
covered by insurance guaranteeing the timely payment of principal and interest
or backed by an escrow or trust account containing sufficient U.S. government or
U.S. government agency securities to ensure timely payment of principal and
interest. Insurers must have a claims paying ability rated "Aaa" by Moody's or
"AAA" by Standard & Poor's. Municipal securities backed by an escrow account or
trust account will not constitute more than 20% of the Fund's net assets.
Under normal circumstances, Insured California Dividend Advantage (NKL) and
Insured California Tax-Free Advantage (NKX) invests at least 80% of their net
assets (as defined in Footnote 7 - Management Fees and Other Transactions with
Affiliates) in municipal securities that are covered by insurance guaranteeing
the timely payment of principal and interest. For purposes of this 80% test,
insurers must have a claims paying ability rated at least "A" at the time of
purchase by at least one independent rating agency. In addition, each of Insured
California Dividend Advantage (NKL) and Insured California Tax-Free Advantage
(NKX) invests at least 80% of its net assets in municipal securities that are
rated at least "AA" at the time of
68 Nuveen Investments
purchase (based on the higher of the rating of the insurer, if any, or the
underlying security) by at least one independent rating agency, or are unrated
but judged to be of similar credit quality by Nuveen Asset Management (the
"Adviser"), a wholly owned subsidiary of Nuveen Investments, Inc. ("Nuveen"), or
are backed by an escrow or trust account containing sufficient U.S. government
or U.S. government agency securities or U.S. Treasury-issued State and Local
Government Series (SLGS) securities to ensure timely payment of principal and
interest. Inverse floating rate securities whose underlying bonds are covered by
insurance are included for purposes of the 80% test. Each of Insured California
Dividend Advantage (NKL) and Insured California Tax-Free Advantage (NKX) may
also invest up to 20% of its net assets in municipal securities rated below "AA"
but at least "BBB" (based on the higher rating of the insurer, if any, or the
underlying bond) or are 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 is authorized to invest in inverse floating rate securities. An
inverse floating rate security is created by depositing a municipal bond,
typically with a fixed interest rate, into a special purpose trust created by a
broker-dealer. In turn, this trust (a) issues floating rate certificates, in
face amounts equal to some fraction of the deposited bond's par amount or market
value, that typically pay short-term tax-exempt interest rates to third parties,
and (b) issues to a long-term investor (such as one of the Funds) an inverse
floating rate certificate (sometimes referred to as an "inverse floater") that
represents all remaining or residual interest in the trust. The income received
by the inverse floater holder varies inversely with the short-term rate paid to
the floating rate certificates' holders, and in most circumstances the inverse
floater holder bears substantially all of the underlying bond's downside
investment risk and also benefits disproportionately from any potential
appreciation of the underlying bond's value. The price of an inverse floating
rate security will be more volatile than that of the underlying bond because the
interest rate is dependent on not only the fixed coupon rate of the underlying
bond but also on the short-term interest paid on the floating rate certificates,
and because the inverse floating rate security essentially bears the risk of
loss of the greater face value of the underlying bond.
A Fund may purchase an inverse floating rate security in a secondary market
transaction without first owning the underlying bond (referred to as an
"externally-deposited inverse floater"), or instead by first selling a
fixed-rate bond to a broker-dealer for deposit into the special purpose trust
and receiving in turn the residual interest in the trust (referred to as a
"self-deposited inverse floater"). The inverse floater held by a Fund gives the
Fund the right (a) to cause the holders of the floating rate certificates to
tender their notes at par, and (b) to have the broker transfer the fixed-rate
bond held by the trust to the Fund, thereby collapsing the trust. An investment
in an externally-deposited inverse floater is identified in the Portfolio of
Investments as "(IF) - Inverse floating rate investment." An investment in a
self-deposited inverse floater is accounted for as a financing transaction in
accordance with Statement of Financial Accounting Standards No. 140 (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
"(UB) - 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 recognizes the related interest paid to the holders of the
short-term floating rate certificates as a component of "Interest expense and
amortization of offering costs" on the Statement of Operations.
During the six months ended August 31, 2009, each Fund invested in
externally-deposited inverse floaters and/or self-deposited inverse floaters.
Each Fund may also enter into shortfall and forbearance agreements (sometimes
referred to as a "recourse trust" or "credit recovery swap") (such agreements
referred to herein as "Recourse Trusts") with a broker-dealer by which a Fund
agrees to reimburse the broker-dealer, in certain circumstances, for the
difference between the liquidation value of the fixed-rate bond held by the
trust and the liquidation value of the floating rate certificates issued by the
trust plus any shortfalls in interest cash flows. Under these agreements, a
Fund's potential exposure to losses related to or on inverse floaters may
increase beyond the value of a Fund's inverse floater investments as a Fund may
potentially be liable to fulfill all amounts owed to holders of the floating
rate certificates. At period end, any such shortfall is recognized as
"Unrealized depreciation on Recourse Trusts" on the Statement of Assets and
Liabilities.
At August 31, 2009, the Funds were not invested in externally-deposited Recourse
Trusts.
Nuveen Investments 69
| Notes to
| Financial Statements (Unaudited) (continued)
INSURED INSURED INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
PREMIUM PREMIUM PREMIUM DIVIDEND DIVIDEND DIVIDEND DIVIDEND TAX-FREE
INCOME INCOME 2 INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 ADVANTAGE ADVANTAGE
(NPC) (NCL) (NCU) (NAC) (NVX) (NZH) (NKL) (NKX)
---------------------------------------------------------------------------------------------------------------------------------
Maximum exposure to
Recourse Trusts $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
=================================================================================================================================
The average floating rate obligations outstanding and average annual interest
rate and fees related to self-deposited inverse floaters during the six months
ended August 31, 2009, 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 $ -- $19,171,413 $7,283,859 $19,540,000
Average annual interest rate and fees --% 0.87% 0.84% 0.90%
==============================================================================================
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 $8,905,000 $12,610,598 $7,533,098 $3,360,000
Average annual interest rate and fees 0.85% 0.82% 0.90% 1.06%
==============================================================================================
Futures Contracts
Each Fund is subject to interest rate risk in the normal course of pursuing its
investment objectives and is authorized to invest in futures contracts in
attempt to manage such risk. 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." Cash held by the broker to cover initial margin requirements on open
futures contracts, if any, is recognized as "Deposits with brokers for open
futures contracts" on the Statement of Assets and Liabilities. Subsequent
payments ("variation margin") are made or received by a Fund each day, depending
on the daily fluctuation of the value of the contract. Variation margin is
recognized as a receivable or payable for "Variation margin on futures
contracts" on the Statement of Assets and Liabilities, when applicable.
During the period the futures contract is open, changes in the value of the
contract are recorded as an unrealized gain or loss by "marking-to-market" on a
daily basis to reflect the changes in market value of the contract and is
recognized as "Change in net unrealized appreciation (depreciation) of futures
contracts" on the Statement of Operations. 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 and is recognized as "Net realized gain (loss) from
futures contracts" on the Statement of Operations. The Funds did not invest in
futures contracts during the six months ended August 31, 2009.
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.
Swap Contracts
Each Fund is authorized to enter into forward interest rate swap contracts
consistent with their investment objectives and policies to reduce, increase or
otherwise alter its risk profile or to alter its portfolio characteristics (i.e.
duration, yield curve positioning and credit quality).
Each Fund is subject to interest rate risk in the normal course of pursuing its
investment objectives. 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 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
70 Nuveen Investments
termination date increases or decreases. Forward interest rate swap contracts
are valued daily. The net amount recorded on these transactions for each
counterparty is recognized on the Statement of Assets and Liabilities as
"Unrealized appreciation or depreciation on forward swaps" with the change
during the fiscal period recognized on the Statement of Operations as "Change in
net unrealized appreciation (depreciation) of forward swaps."
The 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. Net realized
gains and losses during the fiscal period are recognized on the Statement of
Operations as "Net realized gain (loss) from forward swaps." 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. Insured California Premium Income 2 (NCL) and California Dividend
Advantage 3 (NZH) invested in forward interest rate swaps transactions during
the six months ended August 31, 2009.
The average notional amount of forward swap contracts outstanding during the six
months ended August 31, 2009, were as follows:
INSURED
CALIFORNIA CALIFORNIA
PREMIUM DIVIDEND
INCOME 2 ADVANTAGE 3
(NCL) (NZH)
-------------------------------------------------------------------------------------------
Forward swap contracts average notional amount outstanding $4,000,000 $4,333,333
===========================================================================================
Refer to Footnote 3 - Derivative Instruments and Hedging Activities for further
details on forward swap contract activity.
Market and Counterparty Credit Risk
In the normal course of business each Fund may invest in financial instruments
and enter into financial transactions where risk of potential loss exists due to
changes in the market (market risk) or failure of the other party to the
transaction to perform (counterparty credit risk). The potential loss could
exceed the value of the financial assets recorded on the financial statements.
Financial assets, which potentially expose each Fund to counterparty credit
risk, consist principally of cash due from counterparties on forward, option and
swap transactions. The extent of each Fund's exposure to counterparty credit
risk in respect to these financial assets approximates their carrying value as
recorded on the Statement of Assets and Liabilities. Futures contracts expose a
Fund to minimal counterparty credit risk as they are exchange traded and the
exchange's clearinghouse, which is counterparty to all exchange traded futures,
guarantees the futures contracts against default.
Each Fund helps manage counterparty credit risk by entering into agreements only
with counterparties the Adviser believes have the financial resources to honor
their obligations and by having the Adviser monitor the financial stability of
the counterparties. Additionally, counterparties may be required to pledge
collateral daily (based on the daily valuation of the financial asset) on behalf
of each Fund with a value approximately equal to the amount of any unrealized
gain above a pre-determined threshold. Reciprocally, when each Fund has an
unrealized loss, the Funds have instructed the custodian to pledge assets of the
Funds as collateral with a value approximately equal to the amount of the
unrealized loss above a pre-determined threshold. Collateral pledges are
monitored and subsequently adjusted if and when the valuations fluctuate, either
up or down, by at least the predetermined threshold amount.
Zero Coupon Securities
Each Fund is authorized to invest in zero coupon securities. A zero coupon
security does not pay a regular interest coupon to its holders during the life
of the security. Tax-exempt income to the holder of the security comes from
accretion of the difference between the original purchase price of the security
at issuance and the par value of the security at maturity and is effectively
paid at maturity. Such securities are included in the Portfolios of Investments
with a 0.000% coupon rate in their description. The market prices of zero coupon
securities generally are more volatile than the market prices of securities that
pay interest periodically.
Offering Costs
Costs incurred by Insured California Tax-Free Advantage (NKX) in connection with
its offering of Variable Rate Demand Preferred shares ($530,000) were recorded
as a deferred charge which will be amortized over the 30-year life of the shares
and are included as a component of "Interest expense and amortization of
offering costs" on the Statement of Operations.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by net credits earned on each Fund's cash on
deposit with the bank. Such deposit arrangements are an alternative to overnight
investments. Credits for cash balances may be offset by charges for any days on
which a Fund overdraws its account at the custodian bank.
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
Nuveen Investments 71
| Notes to
| Financial Statements (Unaudited) (continued)
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 US 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. FAIR VALUE MEASUREMENTS
In determining the value of each Fund's investments various inputs are used.
These inputs are summarized in the three broad levels listed below:
Level 1 - Quoted prices in active markets for identical securities.
Level 2 - Other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit
risk, etc.).
Level 3 - Significant unobservable inputs (including management's
assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not an indication of
the risk associated with investing in those securities. The following is a
summary of each Fund's fair value measurements as of August 31, 2009:
INSURED CALIFORNIA PREMIUM INCOME (NPC) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
---------------------------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $132,338,597 $ -- $132,338,597
===============================================================================================================
INSURED CALIFORNIA PREMIUM INCOME 2 (NCL) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
---------------------------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $263,021,193 $ -- $263,021,193
===============================================================================================================
CALIFORNIA PREMIUM INCOME (NCU) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
---------------------------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $112,530,077 $ -- $112,530,077
Short-Term Investments -- 3,500,000 -- 3,500,000
---------------------------------------------------------------------------------------------------------------
Total $ -- $116,030,077 $ -- $116,030,077
===============================================================================================================
CALIFORNIA DIVIDEND ADVANTAGE (NAC) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
---------------------------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $466,148,682 $ -- $466,148,682
Short-Term Investments -- 1,900,000 -- 1,900,000
---------------------------------------------------------------------------------------------------------------
Total $ -- $468,048,682 $ -- $468,048,682
===============================================================================================================
CALIFORNIA DIVIDEND ADVANTAGE 2 (NVX) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
---------------------------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $307,256,297 $ -- $307,256,297
===============================================================================================================
CALIFORNIA DIVIDEND ADVANTAGE 3 (NZH) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
---------------------------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $455,597,359 $ -- $455,597,359
Short-Term Investments -- 2,095,000 -- 2,095,000
---------------------------------------------------------------------------------------------------------------
Total $ -- $457,692,359 $ -- $457,692,359
===============================================================================================================
INSURED CALIFORNIA DIVIDEND ADVANTAGE (NKL) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
---------------------------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $329,289,202 $ -- $329,289,202
===============================================================================================================
INSURED CALIFORNIA TAX-FREE ADVANTAGE (NKX) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
---------------------------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $113,860,900 $ -- $113,860,900
Short-Term Investments -- 3,500,000 -- 3,500,000
---------------------------------------------------------------------------------------------------------------
Total $ -- $117,360,900 $ -- $117,360,900
===============================================================================================================
72 Nuveen Investments
3. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
During the current fiscal period, the Funds adopted the provisions of Statement
of Financial Accounting Standards No. 161 (SFAS No. 161) "Disclosures about
Derivative Instruments and Hedging Activities." This standard is intended to
enhance financial statement disclosures for derivative instruments and hedging
activities and enable investors to better understand: a) how and why a fund uses
derivative instruments; b) how derivative instruments are accounted for; and c)
how derivative instruments affect a fund's financial position, results of
operations and cash flows, if any. The Funds record derivative instruments at
fair value with changes in fair value recognized on the Statement of Operations,
when applicable. Even though the Funds' investments in derivatives may represent
economic hedges, they are considered to be non-hedge transactions for SFAS No.
161 disclosure purposes. For additional information on the derivative
instruments in which each Fund was invested during and at the end of the
reporting period, refer to the Portfolio of Investments, Financial Statements
and Footnote 1 - General Information and Significant Accounting Policies.
The following tables presents the amount of net realized gain (loss) and change
in net unrealized appreciation (depreciation) recognized for the six months
ended August 31, 2009, on derivative instruments, as well as the primary risk
exposure associated with each. Insured California Premium Income 2 (NCL) and
California Dividend Advantage 3 (NZH) invested in derivative instruments during
the six months ended August 31, 2009. The Funds had no derivative contracts
outstanding at August 31, 2009.
INSURED
CALIFORNIA CALIFORNIA
PREMIUM DIVIDEND
INCOME 2 ADVANTAGE 3
NET REALIZED GAIN (LOSS) FROM FORWARD SWAPS (NCL) (NZH)
---------------------------------------------------------------------------------------------
RISK EXPOSURE
Interest Rate $2,508,000 $(1,938,000)
=============================================================================================
INSURED
CALIFORNIA CALIFORNIA
PREMIUM DIVIDEND
INCOME 2 ADVANTAGE 3
CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) OF FORWARD SWAPS (NCL) (NZH)
-----------------------------------------------------------------------------------------------------------
RISK EXPOSURE
Interest Rate $(1,751,141) $2,841,843
===========================================================================================================
4. FUND SHARES
Common Shares
Transactions in Common shares were as follows:
INSURED CALIFORNIA PREMIUM INCOME (NPC) INSURED CALIFORNIA PREMIUM INCOME 2 (NCL)
--------------------------------------- -----------------------------------------
SIX MONTHS SIX MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED YEAR ENDED ENDED ENDED YEAR ENDED
8/31/09 2/28/09 8/31/08 8/31/09 2/28/09 8/31/08
-----------------------------------------------------------------------------------------------------------------------------------
Common shares:
Issued to shareholders due to reinvestment
of distributions -- -- -- -- -- --
Repurchased (7,100) (6,200) -- (11,700) (41,800) --
-----------------------------------------------------------------------------------------------------------------------------------
Weighted average Common share:
Price per share repurchased $11.25 $12.00 -- $10.43 $10.67 --
Discount per share repurchased 18.75% 15.30% -- 18.03% 17.79% --
===================================================================================================================================
CALIFORNIA PREMIUM INCOME (NCU) CALIFORNIA DIVIDEND ADVANTAGE (NAC)
-------------------------------------- ----------------------------------------
SIX MONTHS SIX MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED YEAR ENDED ENDED ENDED YEAR ENDED
8/31/09 2/28/09 8/31/08 8/31/09 2/28/09 8/31/08
-----------------------------------------------------------------------------------------------------------------------------------
Common shares:
Issued to shareholders due to reinvestment
of distributions -- -- -- -- -- --
Repurchased (23,200) (14,700) -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------------
Weighted average Common share:
Price per share repurchased $ 9.75 $ 9.67 -- -- -- --
Discount per share repurchased 20.39% 22.26% -- -- -- --
===================================================================================================================================
Nuveen Investments 73
| Notes to
| Financial Statements (Unaudited) (continued)
CALIFORNIA DIVIDEND ADVANTAGE 2 (NVX) CALIFORNIA DIVIDEND ADVANTAGE 3 (NZH)
------------------------------------- --------------------------------------
SIX MONTHS SIX MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED YEAR ENDED ENDED ENDED YEAR ENDED
8/31/09 2/28/09 8/31/08 8/31/09 2/28/09 8/31/08
-----------------------------------------------------------------------------------------------------------------------------
Common shares:
Issued to shareholders due to -- -- -- -- -- --
reinvestment of distributions
Repurchased (32,400) (18,300) -- -- (12,900) --
-----------------------------------------------------------------------------------------------------------------------------
Weighted average Common share:
Price per share repurchased $10.28 $10.26 -- -- $ 9.31 --
Discount per share repurchased 19.87% 21.40% -- -- 19.85% --
=============================================================================================================================
INSURED CALIFORNIA DIVIDEND ADVANTAGE (NKL) INSURED CALIFORNIA TAX-FREE ADVANTAGE (NKX)
-------------------------------------------- --------------------------------------------
SIX MONTHS SIX MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED YEAR ENDED ENDED ENDED YEAR ENDED
8/31/09 2/28/09 8/31/08 8/31/09 2/28/09 8/31/08
------------------------------------------------------------------------------------------------------------------------------
Common shares:
Issued to shareholders due to -- -- -- -- -- 1,226
reinvestment of distributions
Repurchased (13,700) (19,000) -- -- -- --
------------------------------------------------------------------------------------------------------------------------------
Weighted average Common share:
Price per share repurchased $11.04 $10.76 -- -- -- --
Discount per share repurchased 18.04% 21.01% -- -- -- --
==============================================================================================================================
Preferred Shares
Insured California Premium Income (NPC) did not redeem and/or notice for
redemption any of their Auction Rate Preferred shares during the six months
ended August 31, 2009, the six months ended February 28, 2009, or during the
fiscal year ended August 31, 2008. Transactions in Auction Rate Preferred shares
were as follows:
INSURED CALIFORNIA
PREMIUM INCOME 2 (NCL)
------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED YEAR ENDED
8/31/09 2/28/09 8/31/08
------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
--------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred shares redeemed and/or
noticed for redemption:
Series T -- $ -- -- $ -- 303 $ 7,575,000
Series TH -- -- -- -- 304 7,600,000
--------------------------------------------------------------------------------------------------------------------
Total -- $ -- -- $ -- 607 $15,175,000
====================================================================================================================
CALIFORNIA
PREMIUM INCOME (NCU)
------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED YEAR ENDED
8/31/09 2/28/09 8/31/08
------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
--------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred shares redeemed and/or
noticed for redemption:
Series M 80 $2,000,000 85 $2,125,000 -- $ --
====================================================================================================================
74 Nuveen Investments
CALIFORNIA DIVIDEND
ADVANTAGE (NAC)
------------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED YEAR ENDED
8/31/09 2/28/09 8/31/
------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
--------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred shares redeemed and/or
noticed for redemption:
Series TH -- $ -- -- $ -- 790 $19,750,000
Series F -- -- -- -- 789 19,725,000
--------------------------------------------------------------------------------------------------------------------
Total -- $ -- -- $ -- 1,579 $39,475,000
====================================================================================================================
CALIFORNIA DIVIDEND
ADVANTAGE 2 (NVX)
--------------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED YEAR ENDED
8/31/09 2/28/09 8/31/08
--------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred shares redeemed and/or
noticed for redemption:
Series M 235 $ 5,875,000 -- $ -- -- $ --
Series F 234 5,850,000 -- -- -- --
---------------------------------------------------------------------------------------------------------------------------
Total 469 $11,725,000 -- $ -- -- $ --
===========================================================================================================================
CALIFORNIA DIVIDEND
ADVANTAGE 3 (NZH)
-------------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED YEAR ENDED
8/31/09 2/28/09 8/31/08
-------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred shares redeemed and/or
noticed for redemption:
Series M -- $ -- 117 $2,925,000 542 $13,550,000
Series TH -- -- 117 2,925,000 541 13,525,000
---------------------------------------------------------------------------------------------------------------------------
Total -- $ -- 234 $5,850,000 1,083 $27,075,000
===========================================================================================================================
INSURED CALIFORNIA
DIVIDEND ADVANTAGE (NKL)
-------------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED YEAR ENDED
8/31/09 2/28/09 8/31/08
-------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred shares redeemed and/or
noticed for redemption:
Series T -- $ -- -- $ -- 195 $4,875,000
Series F -- -- -- -- 195 4,875,000
---------------------------------------------------------------------------------------------------------------------------
Total -- $ -- -- $ -- 390 $9,750,000
===========================================================================================================================
Nuveen Investments 75
| Notes to
| Financial Statements (Unaudited) (continued)
INSURED CALIFORNIA
TAX-FREE ADVANTAGE (NKX)
-----------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED YEAR ENDED
8/31/09 2/28/09 8/31/08
-----------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred shares redeemed and/or
noticed for redemption:
Series TH N/A N/A N/A N/A 1,800 $45,000,000
===========================================================================================================================
N/A - All $45,000,000 of the Fund's outstanding Auction Rate Preferred shares
were redeemed during the fiscal year ended August 31, 2008.
Transactions in Variable Rate Demand Preferred shares were as follows:
INSURED CALIFORNIA
TAX-FREE ADVANTAGE (NKX)
-----------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED YEAR ENDED
8/31/09 2/28/09 8/31/08
-----------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------------------------------------------------------------------------------------------------------------------------
Variable Rate Demand Preferred shares issued:
Series 1 -- $ -- -- $ -- 355 $35,500,000
===========================================================================================================================
5. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities but excluding short-term investments
and derivative transactions) during the six months ended August 31, 2009, were
as follows:
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
PREMIUM PREMIUM PREMIUM DIVIDEND
INCOME INCOME 2 INCOME ADVANTAGE
(NPC) (NCL) (NCU) (NAC)
------------------------------------------------------------------------------------------------
Purchases $1,154,579 $2,253,922 $7,255,271 $584,250
Sales and maturities 4,275,000 1,850,000 6,975,450 801,800
================================================================================================
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
DIVIDEND DIVIDEND DIVIDEND TAX-FREE
ADVANTAGE 2 ADVANTAGE 3 ADVANTAGE ADVANTAGE
(NVX) (NZH) (NKL) (NKX)
------------------------------------------------------------------------------------------------
Purchases $ 6,630,579 $ 7,268,581 $2,789,815 $1,051,668
Sales and maturities 10,827,800 11,036,701 570,000 53,924
================================================================================================
6. INCOME TAX INFORMATION The following
information is presented on an income tax basis. Differences between amounts for
financial statement and federal income tax purposes are primarily due to timing
differences in recognizing taxable market discount, timing differences in
recognizing certain gains and losses on investment transactions and the
treatment of investments in inverse floating rate transactions subject to SFAS
No.140, if any. To the extent that differences arise that are permanent in
nature, such amounts are reclassified within the capital accounts on the
Statement of Assets and Liabilities presented in the annual report, based on
their federal tax basis treatment; temporary differences do not require
reclassification. Temporary and permanent differences do not impact the net
asset values of the Funds.
At August 31, 2009, 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 $129,344,322 $244,131,424 $110,773,654 $449,958,277
=======================================================================================================
76 Nuveen Investments
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
DIVIDEND DIVIDEND DIVIDEND TAX-FREE
ADVANTAGE 2 ADVANTAGE 3 ADVANTAGE ADVANTAGE
(NVX) (NZH) (NKL) (NKX)
-------------------------------------------------------------------------------------------------------
Cost of investments $304,106,450 $472,416,678 $321,983,669 $116,331,294
=======================================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at August 31, 2009, 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 $ 6,740,841 $ 9,378,395 $ 4,094,151 $ 18,092,807
Depreciation (3,746,566) (8,368,942) (5,490,827) (28,546,183)
--------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investments $ 2,994,275 $ 1,009,453 $ (1,396,676) $(10,453,376)
==========================================================================================================================
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
DIVIDEND DIVIDEND DIVIDEND TAX-FREE
ADVANTAGE 2 ADVANTAGE 3 ADVANTAGE ADVANTAGE
(NVX) (NZH) (NKL) (NKX)
----------------------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $ 13,565,815 $ 11,874,929 $ 13,037,297 $ 3,285,354
Depreciation (19,317,705) (37,698,930) (13,116,576) (5,613,317)
----------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investments $ (5,751,890) $(25,824,001) $ (79,279) $(2,327,963)
============================================================================================================================
The tax components of undistributed net tax-exempt income, net ordinary income
and net long-term capital gains at February 28, 2009, 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 * $639,719 $1,643,978 $339,004 $2,376,082
Undistributed net ordinary income ** 81,675 39,546 -- 811,589
Undistributed net long-term capital gains 49,280 374,633 -- 693,760
===========================================================================================================
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 * $1,922,975 $3,076,255 $1,515,438 $557,045
Undistributed net ordinary income ** -- -- -- 20,873
Undistributed net long-term capital gains -- -- -- --
===========================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on February 3, 2009, paid on March 2, 2009.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
Nuveen Investments 77
| Notes to
| Financial Statements (Unaudited) (continued)
The tax character of distributions paid during the six months ended February 28,
2009, and during the tax year ended August 31, 2008, 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
FOR THE SIX MONTHS ENDED FEBRUARY 28, 2009 (NPC) (NCL) (NCU) (NAC)
-------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $2,881,331 $5,194,372 $2,510,654 $10,494,023
Distributions from net ordinary income ** 678,143 174,474 -- 3,578,861
Distributions from net long-term capital gains 413,615 1,923,636 48,738 3,054,991
=============================================================================================================
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
DIVIDEND DIVIDEND DIVIDEND TAX-FREE
ADVANTAGE 2 ADVANTAGE 3 ADVANTAGE ADVANTAGE
FOR THE SIX MONTHS ENDED FEBRUARY 28, 2009 (NVX) (NZH) (NKL) (NKX)
-------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $6,778,776 $11,094,973 $7,072,249 $2,395,806
Distributions from net ordinary income ** 32,516 -- 616,317 --
Distributions from net long-term capital gains 672,624 -- 153,290 408,931
=============================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
PREMIUM PREMIUM PREMIUM DIVIDEND
INCOME INCOME 2 INCOME ADVANTAGE
2008 (NPC) (NCL) (NCU) (NAC)
----------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $6,134,637 $11,218,712 $5,106,134 $22,909,598
Distributions from net ordinary income ** 65,183 -- -- --
Distributions from net long-term capital gains 46,723 -- -- 1,099,170
================================================================================================================
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
DIVIDEND DIVIDEND DIVIDEND TAX-FREE
ADVANTAGE 2 ADVANTAGE 3 ADVANTAGE ADVANTAGE
2008 (NVX) (NZH) (NKL) (NKX)
----------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $13,977,615 $23,159,643 $14,876,094 $5,562,376
Distributions from net ordinary income ** -- -- -- --
Distributions from net long-term capital gains -- -- 457,297 --
================================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
At February 28, 2009, the Funds' last tax year end, the following Funds had
unused capital loss carryforwards available for federal income tax purposes to
be applied against future capital gains, if any. If not applied, the
carryforwards will expire as follows:
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
PREMIUM DIVIDEND DIVIDEND DIVIDEND DIVIDEND TAX-FREE
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 ADVANTAGE ADVANTAGE
(NCU) (NAC) (NVX) (NZH) (NKL) (NKX)
------------------------------------------------------------------------------------------------------------------
Expiration:
February 28, 2011 $ -- $ -- $ -- $ 2,816,211 $ -- $ --
February 29, 2012 -- -- -- 323,840 -- --
February 29, 2016 -- -- -- 3,869,938 -- --
February 28, 2017 88,523 14,137,598 926,547 4,536,999 240,670 590,949
------------------------------------------------------------------------------------------------------------------
Total $88,523 $14,137,598 $926,547 $11,546,988 $240,670 $590,949
==================================================================================================================
78 Nuveen Investments
The Funds have elected to defer net realized losses from investments incurred
from November 1, 2008 through February 28, 2009, the Funds' last tax year end,
("post-October losses") in accordance with federal income tax regulations.
Post-October losses are treated as having arisen on the first day of the current
fiscal year:
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
PREMIUM PREMIUM PREMIUM DIVIDEND
INCOME INCOME 2 INCOME ADVANTAGE
(NPC) (NCL) (NCU) (NAC)
------------------------------------------------------------------------------------------------------------
Post-October capital losses $28,044 $8,852,567 $1,652,580 $2,780,771
============================================================================================================
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
DIVIDEND DIVIDEND DIVIDEND TAX-FREE
DVANTAGE 2 ADVANTAGE 3 ADVANTAGE ADVANTAGE
(NVX) (NZH) (NKL) (NKX)
------------------------------------------------------------------------------------------------------------
Post-October capital losses $1,697,447 $7,534,294 $1,282,001 $529,436
============================================================================================================
7.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 the
Adviser, and a specific fund-level component, based only on the amount of assets
within each individual Fund. This pricing structure enables Nuveen fund
shareholders to benefit from growth in the assets within each individual fund as
well as from growth in the amount of complex-wide assets managed by the Adviser.
The annual fund-level fee, payable monthly, for each Fund is based upon the
average daily net assets of each Fund as follows:
INSURED CALIFORNIA PREMIUM INCOME (NPC)
INSURED CALIFORNIA PREMIUM INCOME 2 (NCL)
CALIFORNIA PREMIUM INCOME (NCU)
AVERAGE DAILY NET ASSETS(1) 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)
INSURED CALIFORNIA DIVIDEND ADVANTAGE (NKL)
INSURED CALIFORNIA TAX-FREE ADVANTAGE (NKX)
AVERAGE DAILY NET ASSETS(1) 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 net assets managed as stated in the following
table. As of August 31, 2009, the complex-level fee rate was .1936%.
Nuveen Investments 79
| Notes to
| Financial Statements (Unaudited) (continued)
The complex-level fee schedule is as follows:
COMPLEX-LEVEL NET ASSET BREAKPOINT LEVEL (1) EFFECTIVE RATE AT BREAKPOINT LEVEL
--------------------------------------------------------------------------------------------
$55 billion .2000%
$56 billion .1996
$57 billion .1989
$60 billion .1961
$63 billion .1931
$66 billion .1900
$71 billion .1851
$76 billion .1806
$80 billion .1773
$91 billion .1691
$125 billion .1599
$200 billion .1505
$250 billion .1469
$300 billion .1445
============================================================================================
(1) The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate daily managed net assets of all Nuveen
funds, with such daily managed net assets defined separately for each fund
in its management agreement, but excluding assets attributable to
investments in other Nuveen funds. For the complex-level and fund-level
fee components, daily managed net assets include assets managed by the
Adviser that are attributable to financial leverage. For these purposes,
financial leverage includes the funds use of preferred stock and
borrowings and investments in the residual interest certificates (also
called inverse floating rate securities) in tender option bond (TOB)
trusts, including the portion of assets held by the TOB trust that has
been effectively financed by the trust's issuance of floating rate
securities, subject to an agreement by the Adviser to limit the amount of
such assets for determining managed net assets in certain circumstances.
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, 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, 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.
80 Nuveen Investments
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, for fees and expenses in the amounts and for the time periods set
forth below:
YEAR ENDING YEAR ENDING
SEPTEMBER 30, SEPTEMBER 30,
------------------------------------------------------------------------------------
2001* .30% 2007 .25%
2002 .30 2008 .20
2003 .30 2009 .15
2004 .30 2010 .10
2005 .30 2011 .05
2006 .30
====================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse California Dividend Advantage 3 (NZH)
for any portion of its fees and expenses beyond September 30, 2011.
For the first ten years of Insured California Dividend Advantage's (NKL)
operations, the Adviser has agreed to reimburse the Fund, as a percentage of
average daily net assets, 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, 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.
8. NEW ACCOUNTING PRONOUNCEMENTS
Financial Accounting Standards Board Statement of Financial Accounting Standards
No. 166 (SFAS No. 166)
During June 2009, the Financial Accounting Standards Board issued SFAS No. 166,
"Accounting for Transfers of Financial Assets - an amendment of SFAS No. 140."
The objective of SFAS No. 166 is to improve the relevance, representational
faithfulness, and comparability of the information that a reporting entity
provides in its financial statements about a transfer of financial assets; the
effects of a transfer on its financial position, financial performance, and cash
flows; and a transferor's continuing involvement, if any, in transferred
financial assets.
SFAS No. 166 is effective as of the beginning of each reporting entity's first
annual reporting period that begins after November 15, 2009, for interim periods
within that first annual reporting period and for interim and annual reporting
periods thereafter. Earlier application is prohibited. The recognition and
measurement provisions of SFAS No. 166 must be applied to transfers occurring on
or after the effective date. Additionally, the disclosure provisions of SFAS No.
166 should be applied to transfers that occurred both before and after the
effective date of SFAS No. 166. At this time, management is evaluating the
implications of SFAS No. 166 and the impact it will have on the financial
statement amounts and disclosures, if any.
Nuveen Investments 81
| Notes to
| Financial Statements (Unaudited) (continued)
9. SUBSEQUENT EVENTS
Distributions to Common Shareholders
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on October 1, 2009, to shareholders of record
on September 15, 2009, as follows:
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
PREMIUM PREMIUM PREMIUM DIVIDEND
INCOME INCOME 2 INCOME ADVANTAGE
(NPC) (NCL) (NCU) (NAC)
----------------------------------------------------------------------------------------------
Dividend per share $.0630 $.0670 $.0620 $.0680
==============================================================================================
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
DIVIDEND DIVIDEND DIVIDEND TAX-FREE
DVANTAGE 2 ADVANTAGE 3 ADVANTAGE ADVANTAGE
(NVX) (NZH) (NKL) (NKX)
----------------------------------------------------------------------------------------------
Dividend per share $.0760 $.0700 $.0705 $.0650
==============================================================================================
Auction Rate Preferred Shares
On October 1, 2009, California Premium Income (NCU) and California Dividend
Advantage 2 (NVX), each noticed for redemption $4.5 million of their outstanding
Auction Rate Preferred shares, at liquidation value. Each Fund will use be using
tender option bonds (TOBs) to finance the partial redemption of its Auction Rate
Preferred shares.
Financial Accounting Standards Board Statement of Financial Accounting Standards
No. 165 (SFAS No. 165)
In May 2009, the Financial Accounting Standards Board issued SFAS No. 165
"Subsequent Events." SFAS No. 165 requires an entity to recognize in the
financial statements the effects of all subsequent events that provide
additional evidence about conditions that existed at the date of the balance
sheet. SFAS No. 165 is intended to establish general standards of accounting and
for disclosure of events that occur after the balance sheet date but before
financial statements are issued or are available to be issued. SFAS No. 165
requires the disclosure of the date through which an entity has evaluated
subsequent events and the basis for that date - that is, whether that date
represents the date the financial statements were issued or were available to be
issued. SFAS No. 165 is effective for interim and annual periods ending after
June 15, 2009. The Funds have performed an evaluation of subsequent events
through October 27, 2009, which is the date the financial statements were
issued.
82 Nuveen Investments
| Financial
| Highlights (Unaudited)
Nuveen Investments 83
| Financial
| Highlights (Unaudited)
Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS
---------------------------------------------------------------------------
DISTRIBUTIONS DISTRIBUTIONS
FROM NET FROM
BEGINNING INVESTMENT CAPITAL
COMMON NET INCOME TO GAINS TO
SHARE NET REALIZED/ AUCTION RATE AUCTION RATE
NET ASSET INVESTMENT UNREALIZED PREFERRED PREFERRED
VALUE INCOME GAIN (LOSS) SHAREHOLDERS+ SHAREHOLDERS+ TOTAL
------------------------------------------------------------------------------------------------------------------------------------
INSURED CALIFORNIA PREMIUM INCOME (NPC)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) $ 14.03 $ .50 $ .33 $ (.02) $ (.02) $ .79
2009(b) 14.93 .47 (.74) (.11) (.02) (.40)
Year Ended 8/31:
2008 15.04 .95 (.10) (.22) --**** .63
2007 15.58 .90 (.40) (.21) (.02) .27
2006 16.21 .92 (.38) (.18) (.02) .34
2005 16.23 .95 .22 (.10) (.01) 1.06
2004 15.59 .99 .68 (.05) -- 1.62
INSURED CALIFORNIA PREMIUM INCOME 2 (NCL)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) 12.85 .50 .70 (.02) (.02) 1.16
2009(b) 14.13 .44 (1.12) (.10) (.02) (.80)
Year Ended 8/31:
2008 14.50 .95 (.44) (.24) -- .27
2007 14.99 .89 (.46) (.25) -- .18
2006 15.33 .90 (.28) (.20) -- .42
2005 15.12 .91 .29 (.11) -- 1.09
2004 14.60 .96 .53 (.06) -- 1.43
====================================================================================================================================
LESS DISTRIBUTIONS
--------------------------------------
NET
INVESTMENT CAPITAL ENDING
INCOME TO GAINS TO COMMON
COMMON COMMON SHARE ENDING
SHARE- SHARE- NET ASSET MARKET
HOLDERS HOLDERS TOTAL VALUE VALUE
---------------------------------------------------------------------------------------------------------------
INSURED CALIFORNIA PREMIUM INCOME (NPC)
---------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) $ (.37) $ -- $ (.37) $ 14.45 $ 13.06
2009(b) (.36) (.14) (.50) 14.03 12.04
Year Ended 8/31:
2008 (.73) (.01) (.74) 14.93 13.89
2007 (.73) (.08) (.81) 15.04 14.96
2006 (.83) (.14) (.97) 15.58 15.08
2005 (.92) (.16) (1.08) 16.21 15.90
2004 (.93) (.05) (.98) 16.23 15.81
INSURED CALIFORNIA PREMIUM INCOME 2 (NCL)
---------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) (.38) -- (.38) 13.63 12.61
2009(b) (.34) (.14) (.48) 12.85 10.89
Year Ended 8/31:
2008 (.64) -- (.64) 14.13 12.66
2007 (.67) -- (.67) 14.50 13.71
2006 (.76) -- (.76) 14.99 14.19
2005 (.88) -- (.88) 15.33 15.05
2004 (.91) -- (.91) 15.12 15.18
===============================================================================================================
AUCTION RATE PREFERRED SHARES AT VARIABLE RATE DEMAND PREFERRED
END OF PERIOD SHARES AT END OF PERIOD
----------------------------------------- --------------------------------------------
AGGREGATE LIQUIDATION AGGREGATE LIQUIDATION
AMOUNT AND MARKET ASSET AMOUNT AND MARKET ASSET
OUTSTANDING VALUE COVERAGE OUTSTANDING VALUE COVERAGE
(000) PER SHARE PER SHARE (000) PER SHARE PER SHARE
------------------------------------------------------------------------------------------------------------------------------------
INSURED CALIFORNIA PREMIUM INCOME (NPC)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) $ 45,000 $ 25,000 $ 76,760 $ -- $ -- $ --
2009(b) 45,000 25,000 75,295 -- -- --
Year Ended 8/31:
2008 45,000 25,000 78,590 -- -- --
2007 45,000 25,000 78,987 -- -- --
2006 45,000 25,000 80,878 -- -- --
2005 45,000 25,000 83,061 -- -- --
2004 45,000 25,000 83,121 -- -- --
INSURED CALIFORNIA PREMIUM INCOME 2 (NCL)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) 79,825 25,000 79,067 -- -- --
2009(b) 79,825 25,000 75,996 -- -- --
Year Ended 8/31:
2008 87,400 25,000 76,411 -- -- --
2007 95,000 25,000 73,511 -- -- --
2006 95,000 25,000 75,150 -- -- --
2005 95,000 25,000 76,288 -- -- --
2004 95,000 25,000 75,535 -- -- --
====================================================================================================================================
84 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA
---------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
TOTAL RETURNS BEFORE CREDIT/REIMBURSEMENT
---------------------- ------------------------------------------------
BASED ENDING
ON NET
BASED COMMON ASSETS
ON SHARE NET APPLICABLE EXPENSES EXPENSES NET
MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT
VALUE* VALUE* SHARES (000) INTEREST++(a) INTEREST++(a) INCOME++
------------------------------------------------------------------------------------------------------------------------------------
INSURED CALIFORNIA PREMIUM INCOME (NPC)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) 11.73% 5.70% $ 93,168 1.21%*** 1.21%*** 7.08%***
2009(b) (9.25) (2.43) 90,531 1.27*** 1.27*** 6.88***
Year Ended 8/31:
2008 (2.21) 4.23 96,462 1.19 1.19 6.24
2007 4.61 1.70 97,176 1.22 1.16 5.84
2006 1.00 2.23 100,581 1.16 1.16 5.89
2005 7.58 6.74 104,510 1.14 1.14 5.85
2004 11.80 10.64 104,618 1.17 1.17 6.17
INSURED CALIFORNIA PREMIUM INCOME 2 (NCL)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) 19.50 9.15 172,637 1.31*** 1.21*** 7.67***
2009(b) (9.95) (5.40) 162,831 1.53*** 1.24*** 7.15***
Year Ended 8/31:
2008 (3.06) 1.86 179,734 1.23 1.21 6.56
2007 1.26 1.18 184,343 1.24 1.18 6.00
2006 (.63) 2.91 190,571 1.20 1.20 6.05
2005 5.10 7.42 194,895 1.17 1.17 6.03
2004 12.71 10.02 192,035 1.19 1.19 6.38
====================================================================================================================================
RATIOS/SUPPLEMENTAL DATA
-----------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
AFTER CREDIT/REIMBURSEMENT**
-------------------------------------------
EXPENSES EXPENSES NET PORTFOLIO
INCLUDING EXCLUDING INVESTMENT TURNOVER
INTEREST++(a) INTEREST++(a) INCOME++ RATE
-------------------------------------------------------------------------------------------------------
INSURED CALIFORNIA PREMIUM INCOME (NPC)
-------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) 1.21%*** 1.21%*** 7.08%*** 1%
2009(b) 1.27*** 1.27*** 6.88*** 1
Year Ended 8/31:
2008 1.17 1.17 6.25 17
2007 1.20 1.14 5.87 9
2006 1.15 1.15 5.90 9
2005 1.13 1.13 5.86 9
2004 1.16 1.16 6.17 25
INSURED CALIFORNIA PREMIUM INCOME 2 (NCL)
-------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) 1.31*** 1.21*** 7.67*** 1
2009(b) 1.50*** 1.21*** 7.17*** 9
Year Ended 8/31:
2008 1.22 1.19 6.57 12
2007 1.22 1.17 6.01 19
2006 1.19 1.19 6.05 14
2005 1.17 1.17 6.03 7
2004 1.19 1.19 6.38 35
=======================================================================================================
* Total Return Based on Market Value is the combination of changes in the
market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return Based on Common Share Net Asset Value is the combination of
changes in Common share net asset value, reinvested dividend income at net
asset value and reinvested capital gains distributions at net asset value,
if any. The last dividend declared in the period, which is typically paid
on the first business day of the following month, is assumed to be
reinvested at the ending net asset value. The actual reinvest price for
the last dividend declared in the period may often be based on the Fund's
market price (and not its net asset value), and therefore may be different
from the price used in the calculation. Total returns are not annualized.
** After custodian fee credit and expense reimbursement, where applicable.
*** Annualized.
**** Rounds to less than $.01 per share.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Auction Rate
Preferred shareholders; Net Investment Income ratios reflect income earned
and expenses incurred on assets attributable to Auction Rate Preferred
shares or Variable Rate Demand Preferred shares, where applicable.
(a) Interest expense arises from payments to Variable Rate Demand Preferred
shareholders and the application of SFAS No. 140 to certain inverse
floating rate transactions entered into by the Fund, where applicable, as
both are more fully described in Footnote 1 - Variable Rate Demand
Preferred Shares and Inverse Floating Rate Securities, respectively.
(b) For the six months ended February 28, 2009.
(c) For the six months ended August 31, 2009.
See accompanying notes to financial statements.
Nuveen Investments 85
| Financial
| Highlights (Unaudited) (continued)
Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS
---------------------------------------------------------------------------
DISTRIBUTIONS DISTRIBUTIONS
FROM NET FROM
BEGINNING INVESTMENT CAPITAL
COMMON NET INCOME TO GAINS TO
SHARE NET REALIZED/ AUCTION RATE AUCTION RATE
NET ASSET INVESTMENT UNREALIZED PREFERRED PREFERRED
VALUE INCOME GAIN (LOSS) SHAREHOLDERS+ SHAREHOLDERS+ TOTAL
-------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA PREMIUM INCOME (NCU)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) $ 12.37 $ .46 $ .71 $ (.02) $ -- $ 1.15
2009(b) 13.67 .43 (1.29) (.10) --**** (.96)
Year Ended 8/31:
2008 14.06 .92 (.43) (.24) -- .25
2007 14.63 .90 (.52) (.24) (.01) .13
2006 15.03 .89 (.30) (.21) -- .38
2005 14.51 .90 .60 (.12) -- 1.38
2004 13.66 .94 .85 (.06) -- 1.73
CALIFORNIA DIVIDEND ADVANTAGE (NAC)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) 12.10 .52 1.01 (.01) (.02) 1.50
2009(b) 14.43 .49 (2.07) (.09) (.02) (1.69)
Year Ended 8/31:
2008 14.93 1.02 (.50) (.23) (.01) .28
2007 15.59 1.00 (.56) (.24) (.01) .19
2006 15.98 1.01 (.25) (.21) -- .55
2005 15.59 1.04 .50 (.12) -- 1.42
2004 14.82 1.05 .76 (.06) -- 1.75
===============================================================================================================================
LESS DISTRIBUTIONS
------------------------------------
NET
INVESTMENT CAPITAL ENDING
INCOME TO GAINS TO COMMON
COMMON COMMON SHARE ENDING
SHARE- SHARE- NET ASSET MARKET
HOLDERS HOLDERS TOTAL VALUE VALUE
-----------------------------------------------------------------------------------------------------
CALIFORNIA PREMIUM INCOME (NCU)
-----------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) $ (.34) $ -- $ (.34) $ 13.18 $ 12.09
2009(b) (.33) (.01) (.34) 12.37 10.06
Year Ended 8/31:
2008 (.64) -- (.64) 13.67 12.58
2007 (.67) (.03) (.70) 14.06 13.03
2006 (.77) (.01) (.78) 14.63 14.01
2005 (.86) -- (.86) 15.03 14.37
2004 (.88) -- (.88) 14.51 13.67
CALIFORNIA DIVIDEND ADVANTAGE (NAC)
-----------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) (.39) -- (.39) 13.21 12.24
2009(b) (.38) (.26) (.64) 12.10 10.82
Year Ended 8/31:
2008 (.74) (.04) (.78) 14.43 13.44
2007 (.80) (.05) (.85) 14.93 14.34
2006 (.91) (.03) (.94) 15.59 15.97
2005 (.98) (.05) (1.03) 15.98 16.07
2004 (.98) -- (.98) 15.59 15.00
=====================================================================================================
AUCTION RATE PREFERRED SHARES VARIABLE RATE DEMAND PREFERRED
AT END OF PERIOD SHARES AT END OF PERIOD
------------------------------------------- -------------------------------------------
AGGREGATE LIQUIDATION AGGREGATE LIQUIDATION
AMOUNT AND MARKET ASSET AMOUNT AND MARKET ASSET
OUTSTANDING VALUE COVERAGE OUTSTANDING VALUE COVERAGE
(000) PER SHARE PER SHARE (000) PER SHARE PER SHARE
-------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA PREMIUM INCOME (NCU)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) $ 38,875 $ 25,000 $ 73,637 $ -- $ -- $ --
2009(b) 40,875 25,000 68,584 -- -- --
Year Ended 8/31:
2008 43,000 25,000 70,910 -- -- --
2007 43,000 25,000 72,209 -- -- --
2006 43,000 25,000 74,109 -- -- --
2005 43,000 25,000 75,456 -- -- --
2004 43,000 25,000 73,704 -- -- --
CALIFORNIA DIVIDEND ADVANTAGE (NAC)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) 135,525 25,000 82,224 -- -- --
2009(b) 135,525 25,000 77,430 -- -- --
Year Ended 8/31:
2008 135,525 25,000 87,485 -- -- --
2007 175,000 25,000 75,075 -- -- --
2006 175,000 25,000 77,217 -- -- --
2005 175,000 25,000 78,466 -- -- --
2004 175,000 25,000 77,152 -- -- --
===============================================================================================================================
86 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA
--------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
TOTAL RETURNS BEFORE CREDIT/REIMBURSEMENT
----------------------- ----------------------------------------------
BASED ENDING
ON NET
BASED COMMON ASSETS
ON SHARE NET APPLICABLE EXPENSES EXPENSES NET
MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT
VALUE* VALUE* SHARES (000) INTEREST++(a) INTEREST++(a) INCOME++
------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA PREMIUM INCOME (NCU)
------------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) 23.95% 9.26% $ 75,631 1.36%*** 1.28%*** 7.26%***
2009(b) (17.22) (6.92) 71,260 1.57*** 1.37*** 7.06***
Year Ended 8/31:
2008 1.51 1.81 78,966 1.34 1.23 6.56
2007 (2.21) .82 81,200 1.29 1.21 6.14
2006 3.14 2.72 84,467 1.23 1.23 6.09
2005 11.76 9.75 86,785 1.21 1.21 6.08
2004 12.04 12.94 83,772 1.23 1.23 6.62
CALIFORNIA DIVIDEND ADVANTAGE (NAC)
------------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) 17.10 12.62 310,213 1.21*** 1.15*** 8.22***
2009(b) (14.14) (11.45) 284,221 1.31*** 1.17*** 7.92***
Year Ended 8/31:
2008 (.84) 1.85 338,732 1.26 1.15 6.77
2007 (5.19) 1.16 350,523 1.17 1.12 6.24
2006 5.47 3.63 365,516 1.13 1.13 6.22
2005 14.62 9.41 374,265 1.12 1.12 6.22
2004 12.07 12.11 365,066 1.14 1.14 6.38
==============================================================================================================================
RATIOS/SUPPLEMENTAL DATA
----------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
AFTER CREDIT/REIMBURSEMENT**
-------------------------------------------------
EXPENSES EXPENSES NET PORTFOLIO
INCLUDING EXCLUDING INVESTMENT TURNOVER
INTEREST++(a) INTEREST++(a) INCOME++ RATE
------------------------------------------------------------------------------------------------------
CALIFORNIA PREMIUM INCOME (NCU)
------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) 1.36%*** 1.28%*** 7.26%*** 6%
2009(b) 1.55*** 1.35*** 7.08*** 14
Year Ended 8/31:
2008 1.33 1.21 6.57 5
2007 1.27 1.19 6.16 11
2006 1.21 1.21 6.10 20
2005 1.20 1.20 6.09 13
2004 1.22 1.22 6.63 19
CALIFORNIA DIVIDEND ADVANTAGE (NAC)
------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) 1.15*** 1.09*** 8.28*** 0
2009(b) 1.22*** 1.08*** 8.01*** 14
Year Ended 8/31:
2008 1.10 .99 6.93 19
2007 .94 .89 6.47 20
2006 .83 .83 6.51 13
2005 .75 .75 6.59 4
2004 .70 .70 6.83 12
======================================================================================================
* Total Return Based on Market Value is the combination of changes in the
market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return Based on Common Share Net Asset Value is the combination of
changes in Common share net asset value, reinvested dividend income at net
asset value and reinvested capital gains distributions at net asset value,
if any. The last dividend declared in the period, which is typically paid
on the first business day of the following month, is assumed to be
reinvested at the ending net asset value. The actual reinvest price for
the last dividend declared in the period may often be based on the Fund's
market price (and not its net asset value), and therefore may be different
from the price used in the calculation. Total returns are not annualized.
** After custodian fee credit and expense reimbursement, where applicable.
*** Annualized.
**** Rounds to less than $.01 per share.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Auction Rate
Preferred shareholders; Net Investment Income ratios reflect income earned
and expenses incurred on assets attributable to Auction Rate Preferred
shares or Variable Rate Demand Preferred shares, where applicable.
(a) Interest expense arises from payments to Variable Rate Demand Preferred
shareholders and the application of SFAS No. 140 to certain inverse
floating rate transactions entered into by the Fund, where applicable, as
both are more fully described in Footnote 1 - Variable Rate Demand
Preferred Shares and Inverse Floating Rate Securities, respectively.
(b) For the six months ended February 28, 2009.
(c) For the six months ended August 31, 2009.
See accompanying notes to financial statements.
Nuveen Investments 87
| Financial
| Highlights (Unaudited) (continued)
Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS
------------------------------------------------------------------------
DISTRIBUTIONS DISTRIBUTIONS
FROM NET FROM
BEGINNING INVESTMENT CAPITAL
COMMON NET INCOME TO GAINS TO
SHARE NET REALIZED/ AUCTION RATE AUCTION RATE
NET ASSET INVESTMENT UNREALIZED PREFERRED PREFERRED
VALUE INCOME GAIN (LOSS) SHAREHOLDERS+ SHAREHOLDERS+ TOTAL
--------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA DIVIDEND ADVANTAGE 2 (NVX)
--------------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) $ 12.91 $ .54 $ .80 $ (.02) $ -- $ 1.32
2009(b) 14.39 .51 (1.47) (.11) (.01) (1.08)
Year Ended 8/31:
2008 14.69 1.01 (.37) (.25) -- .39
2007 15.36 .96 (.62) (.25) -- .09
2006 15.63 .97 (.19) (.21) -- .57
2005 14.97 .98 .71 (.12) -- 1.57
2004 14.18 .99 .77 (.06) -- 1.70
CALIFORNIA DIVIDEND ADVANTAGE 3 (NZH)
--------------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) 11.53 .50 .81 (.02) -- 1.29
2009(b) 13.62 .50 (2.13) (.09) -- (1.72)
Year Ended 8/31:
2008 14.25 1.03 (.70) (.25) -- .08
2007 15.03 .98 (.73) (.27) -- (.02)
2006 15.31 .97 (.20) (.22) -- .55
2005 14.65 .97 .68 (.13) -- 1.52
2004 13.72 .98 .88 (.07) -- 1.79
================================================================================================================================
LESS DISTRIBUTIONS
----------------------------------------
NET
INVESTMENT CAPITAL ENDING
INCOME TO GAINS TO COMMON
COMMON COMMON SHARE ENDING
SHARE- SHARE- NET ASSET MARKET
HOLDERS HOLDERS TOTAL VALUE VALUE
-------------------------------------------------------------------------------------------------------------
CALIFORNIA DIVIDEND ADVANTAGE 2 (NVX)
-------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) $ (.41) $ -- $ (.41) $ 13.82 $ 12.75
2009(b) (.36) (.04) (.40) 12.91 10.51
Year Ended 8/31:
2008 (.69) -- (.69) 14.39 12.67
2007 (.76) -- (.76) 14.69 13.73
2006 (.84) -- (.84) 15.36 14.95
2005 (.91) -- (.91) 15.63 15.19
2004 (.91) -- (.91) 14.97 14.08
CALIFORNIA DIVIDEND ADVANTAGE 3 (NZH)
-------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) (.40) -- (.40) 12.42 12.20
2009(b) (.37) -- (.37) 11.53 10.23
Year Ended 8/31:
2008 (.71) -- (.71) 13.62 12.87
2007 (.76) -- (.76) 14.25 13.52
2006 (.83) -- (.83) 15.03 14.84
2005 (.86) -- (.86) 15.31 14.49
2004 (.86) -- (.86) 14.65 13.33
=============================================================================================================
AUCTION RATE PREFERRED SHARES VARIABLE RATE DEMAND PREFERRED SHARES
AT END OF PERIOD AT END OF PERIOD
---------------------------------------------- -------------------------------------------
AGGREGATE LIQUIDATION AGGREGATE LIQUIDATION
AMOUNT AND MARKET ASSET AMOUNT AND MARKET ASSET
OUTSTANDING VALUE COVERAGE OUTSTANDING VALUE COVERAGE
(000) PER SHARE PER SHARE (000) PER SHARE PER SHARE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA DIVIDEND ADVANTAGE 2 (NVX)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) $ 98,275 $ 25,000 $ 76,853 $ -- $ -- $ --
2009(b) 110,000 25,000 68,369 -- -- --
Year Ended 8/31:
2008 110,000 25,000 73,384 -- -- --
2007 110,000 25,000 74,394 -- -- --
2006 110,000 25,000 76,627 -- -- --
2005 110,000 25,000 77,532 -- -- --
2004 110,000 25,000 75,317 -- -- --
CALIFORNIA DIVIDEND ADVANTAGE 3 (NZH)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) 154,075 25,000 73,609 -- -- --
2009(b) 154,075 25,000 70,117 -- -- --
Year Ended 8/31:
2008 159,925 25,000 76,377 -- -- --
2007 187,000 25,000 70,963 -- -- --
2006 187,000 25,000 73,459 -- -- --
2005 187,000 25,000 74,367 -- -- --
2004 187,000 25,000 72,241 -- -- --
====================================================================================================================================
88 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA
----------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
TOTAL RETURNS BEFORE CREDIT/REIMBURSEMENT
------------------------ ------------------------------------------------
BASED ENDING
ON NET
BASED COMMON ASSETS
ON SHARE NET APPLICABLE EXPENSES EXPENSES NET
MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT
VALUE* VALUE* SHARES (000) INTEREST++(a) INTEREST++(a) INCOME++
-----------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA DIVIDEND ADVANTAGE 2 (NVX)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) 25.61% 10.40% $ 203,836 1.24%*** 1.20%*** 7.92%***
2009(b) (13.83) (7.40) 190,824 1.37*** 1.32*** 7.85***
Year Ended 8/31:
2008 (2.80) 2.76 212,890 1.25 1.16 6.56
2007 (3.39) .46 217,332 1.25 1.17 5.97
2006 4.19 3.82 227,160 1.16 1.16 5.94
2005 14.98 10.80 231,140 1.16 1.16 5.94
2004 13.60 12.11 221,395 1.18 1.18 6.24
CALIFORNIA DIVIDEND ADVANTAGE 3 (NZH)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) 23.62 11.40 299,575 1.24*** 1.20*** 8.18***
2009(b) (17.58) (12.54) 278,056 1.39*** 1.27*** 8.50***
Year Ended 8/31:
2008 .46 .60 328,659 1.21 1.19 6.96
2007 (4.12) (.32) 343,806 1.22 1.16 6.16
2006 8.50 3.81 362,473 1.16 1.16 6.08
2005 15.75 10.69 369,262 1.17 1.17 6.05
2004 11.97 13.36 353,360 1.20 1.20 6.32
===================================================================================================================================
RATIOS/SUPPLEMENTAL DATA
---------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
AFTER CREDIT/REIMBURSEMENT**
-----------------------------------------------
EXPENSES EXPENSES NET PORTFOLIO
INCLUDING EXCLUDING INVESTMENT TURNOVER
INTEREST++(a) INTEREST++(a) INCOME++ RATE
-------------------------------------------------------------------------------------------------------
CALIFORNIA DIVIDEND ADVANTAGE 2 (NVX)
-------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) 1.07%*** 1.03%*** 8.08%*** 2%
2009(b) 1.12*** 1.07*** 8.10*** 7
Year Ended 8/31:
2008 .97 .88 6.85 20
2007 .89 .81 6.33 21
2006 .73 .73 6.36 9
2005 .70 .70 6.40 3
2004 .72 .72 6.70 13
CALIFORNIA DIVIDEND ADVANTAGE 3 (NZH)
-------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) 1.00*** .97*** 8.42*** 2
2009(b) 1.12*** 1.00*** 8.76*** 9
Year Ended 8/31:
2008 .88 .86 7.29 23
2007 .81 .76 6.56 23
2006 .70 .70 6.54 10
2005 .70 .70 6.51 5
2004 .73 .73 6.78 13
=======================================================================================================
* Total Return Based on Market Value is the combination of changes in the
market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return Based on Common Share Net Asset Value is the combination of
changes in Common share net asset value, reinvested dividend income at net
asset value and reinvested capital gains distributions at net asset value,
if any. The last dividend declared in the period, which is typically paid
on the first business day of the following month, is assumed to be
reinvested at the ending net asset value. The actual reinvest price for
the last dividend declared in the period may often be based on the Fund's
market price (and not its net asset value), and therefore may be different
from the price used in the calculation. Total returns are not annualized.
** After custodian fee credit and expense reimbursement, where applicable.
*** Annualized.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Auction Rate
Preferred shareholders; Net Investment Income ratios reflect income earned
and expenses incurred on assets attributable to Auction Rate Preferred
shares or Variable Rate Demand Preferred shares, where applicable.
(a) Interest expense arises from payments to Variable Rate Demand Preferred
shareholders and the application of SFAS No. 140 to certain inverse
floating rate transactions entered into by the Fund, where applicable, as
both are more fully described in Footnote 1 - Variable Rate Demand
Preferred Shares and Inverse Floating Rate Securities, respectively.
(b) For the six months ended February 28, 2009.
(c) For the six months ended August 31, 2009.
See accompanying notes to financial statements.
Nuveen Investments 89
| Financial
| Highlights (Unaudited) (continued)
Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS
-------------------------------------------------------------------------
DISTRIBUTIONS DISTRIBUTIONS
FROM NET FROM
BEGINNING INVESTMENT CAPITAL
COMMON NET INCOME TO GAINS TO
SHARE NET REALIZED/ AUCTION RATE AUCTION RATE
NET ASSET INVESTMENT UNREALIZED PREFERRED PREFERRED
VALUE INCOME GAIN (LOSS) SHAREHOLDERS+ SHAREHOLDERS+ TOTAL
------------------------------------------------------------------------------------------------------------------------------------
INSURED CALIFORNIA DIVIDEND ADVANTAGE (NKL)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) $ 13.52 $ .53 $ .62 $ (.02) $ -- $ 1.13
2009(b) 14.61 .50 (1.07) (.10) (.01) (.68)
Year Ended 8/31:
2008 14.91 1.03 (.33) (.25) (.01) .44
2007 15.50 1.01 (.57) (.26) --**** .18
2006 15.81 1.01 (.25) (.22) -- .54
2005 15.35 1.01 .52 (.12) -- 1.41
2004 14.60 1.02 .84 (.06) (.01) 1.79
INSURED CALIFORNIA TAX-FREE ADVANTAGE (NKX)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) 12.85 .42 .73 -- -- 1.15
2009(b) 14.19 .39 (1.32) --**** (.01) (.94)
Year Ended 8/31:
2008 14.47 .97 (.30) (.24) -- .43
2007 14.92 .96 (.46) (.24) -- .26
2006 15.17 .95 (.25) (.21) -- .49
2005 14.62 .96 .57 (.13) -- 1.40
2004 13.79 .96 .84 (.06) -- 1.74
====================================================================================================================================
LESS DISTRIBUTIONS
-------------------------------------------
NET
INVESTMENT CAPITAL ENDING
INCOME TO GAINS TO COMMON
COMMON COMMON SHARE ENDING
SHARE- SHARE- NET ASSET MARKET
HOLDERS HOLDERS TOTAL VALUE VALUE
-------------------------------------------------------------------------------------------------------------------
INSURED CALIFORNIA DIVIDEND
-------------------------------------------------------------------------------------------------------------------
ADVANTAGE (NKL)
Year Ended 2/28:
2010(c) $ (.41) $ -- $ (.41) $14.24 $13.15
2009(b) (.37) (.04) (.41) 13.52 11.16
Year Ended 8/31:
2008 (.72) (.02) (.74) 14.61 13.50
2007 (.77) --**** (.77) 14.91 14.24
2006 (.85) -- (.85) 15.50 15.70
2005 (.90) (.05) (.95) 15.81 15.00
2004 (.91) (.13) (1.04) 15.35 14.67
INSURED CALIFORNIA TAX-FREE
ADVANTAGE (NKX)
-------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) (.37) -- (.37) 13.63 12.75
2009(b) (.35) (.05) (.40) 12.85 11.75
Year Ended 8/31:
2008 (.71) -- (.71) 14.19 13.78
2007 (.71) -- (.71) 14.47 14.47
2006 (.74) -- (.74) 14.92 14.27
2005 (.85) -- (.85) 15.17 14.38
2004 (.91) -- (.91) 14.62 14.19
===================================================================================================================
AUCTION RATE PREFERRED SHARES VARIABLE RATE DEMAND PREFERRED SHARES
AT END OF PERIOD AT END OF PERIOD
-----------------------------------------------------------------------------------------------------------------------------------
AGGREGATE LIQUIDATION AGGREGATE LIQUIDATION
AMOUNT AND MARKET ASSET AMOUNT AND MARKET ASSET
OUTSTANDING VALUE COVERAGE OUTSTANDING VALUE COVERAGE
(000) PER SHARE PER SHARE (000) PER SHARE PER SHARE
-----------------------------------------------------------------------------------------------------------------------------------
INSURED CALIFORNIA DIVIDEND ADVANTAGE (NKL)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) $ 108,250 $ 25,000 $ 75,150 $ -- $ -- $ --
2009(b) 108,250 25,000 72,683 -- -- --
Year Ended 8/31:
2008 118,000 25,000 72,321 -- -- --
2007 118,000 25,000 73,289 -- -- --
2006 118,000 25,000 75,111 -- -- --
2005 118,000 25,000 76,113 -- -- --
2004 118,000 25,000 74,616 -- -- --
INSURED CALIFORNIA TAX-FREE ADVANTAGE (NKX)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) -- -- -- 35,500 100,000 325,989
2009(b) -- -- -- 35,500 100,000 313,131
Year Ended 8/31:
2008 -- -- -- 35,500 100,000 335,299
2007 45,000 25,000 72,302 -- -- --
2006 45,000 25,000 73,764 -- -- --
2005 45,000 25,000 74,595 -- -- --
2004 45,000 25,000 72,782 -- -- --
===================================================================================================================================
90 Nuveen Investments
RATIOS/SUPPLEMENTL DATAA
------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
TOTAL RETURNS BEFORE CREDIT/REIMBURSEMENT
--------------------- -----------------------------------------------------------
BASED ENDING
ON NET
BASED COMMON ASSETS
ON SHARE NET APPLICABLE EXPENSES EXPENSES NET
MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT
VALUE* VALUE* SHARES (000) INTEREST++(a) INTEREST++(a) INCOME++
----------------------------------------------------------------------------------------------------------------------------------
INSURED CALIFORNIA DIVIDEND ADVANTAGE (NKL)
----------------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) 21.74% 8.46% $217,150 1.22%*** 1.19%*** 7.47%***
2009(b) (14.22) (4.50) 206,467 1.32*** 1.23*** 7.36***
Year Ended 8/31:
2008 (.03) 2.98 223,356 1.19 1.19 6.52
2007 (4.64) 1.13 227,923 1.21 1.16 6.12
2006 10.72 3.62 236,525 1.17 1.17 6.12
2005 9.00 9.46 241,254 1.16 1.16 6.06
2004 12.54 12.53 234,186 1.18 1.18 6.28
INSURED CALIFORNIA TAX-FREE ADVANTAGE (NKX)
----------------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) 11.87 9.10 80,226 1.76*** 1.48*** 6.21***
2009(b) (11.55) (6.42) 75,661 2.57*** 1.54*** 5.89***
Year Ended 8/31:
2008 .12 2.97 83,531 1.33 1.26 6.28
2007 6.35 1.69 85,144 1.27 1.21 5.95
2006 4.56 3.43 87,775 1.22 1.22 5.97
2005 7.46 9.84 89,272 1.21 1.21 5.95
2004 11.54 12.86 86,008 1.23 1.23 6.17
==================================================================================================================================
RATIOS/SUPPLEMENTAL DATA
-------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
AFTER CREDIT/REIMBURSEMENT**
-------------------------------------------------------------
EXPENSES EXPENSES NET PORTFOLIO
INCLUDING EXCLUDING INVESTMENT TURNOVER
INTEREST++(a) INTEREST++(a) INCOME++ RATE
------------------------------------------------------------------------------------------------------------------
INSURED CALIFORNIA DIVIDEND ADVANTAGE (NKL)
------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) .98%*** .95%*** 7.71%*** 0%
2009(b) .99*** .90*** 7.69*** 3
Year Ended 8/31:
2008 .83 .83 6.88 6
2007 .78 .73 6.55 12
2006 .71 .71 6.58 3
2005 .71 .71 6.51 4
2004 .72 .72 6.74 14
INSURED CALIFORNIA TAX-FREE ADVANTAGE (NKX)
------------------------------------------------------------------------------------------------------------------
Year Ended 2/28:
2010(c) 1.53*** 1.24*** 6.45*** 0
2009(b) 2.25*** 1.22*** 6.21*** 3
Year Ended 8/31:
2008 .91 .83 6.70 28
2007 .77 .71 6.45 15
2006 .73 .73 6.46 4
2005 .73 .73 6.43 3
2004 .73 .73 6.67 20
==================================================================================================================
* Total Return Based on Market Value is the combination of changes in the
market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return Based on Common Share Net Asset Value is the combination of
changes in Common share net asset value, reinvested dividend income at net
asset value and reinvested capital gains distributions at net asset value,
if any. The last dividend declared in the period, which is typically paid
on the first business day of the following month, is assumed to be
reinvested at the ending net asset value. The actual reinvest price for
the last dividend declared in the period may often be based on the Fund's
market price (and not its net asset value), and therefore may be different
from the price used in the calculation. Total returns are not annualized.
** After custodian fee credit and expense reimbursement, where applicable.
*** Annualized.
**** Rounds to less than $.01 per share.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Auction Rate
Preferred shareholders; Net Investment Income ratios reflect income earned
and expenses incurred on assets attributable to Auction Rate Preferred
shares or Variable Rate Demand Preferred shares, where applicable.
(a) Interest expense arises from payments to Variable Rate Demand Preferred
shareholders and the application of SFAS No. 140 to certain inverse
floating rate transactions entered into by the Fund, where applicable, as
both are more fully described in Footnote 1 - Variable Rate Demand
Preferred Shares and Inverse Floating Rate Securities, respectively.
(b) For the six months ended February 28, 2009.
(c) For the six months ended August 31, 2009.
See accompanying notes to financial statements.
Nuveen Investments 91
Annual Investment Management Agreement Approval Process
The Investment Company Act of 1940, as amended (the "1940 Act"), provides, in
substance, that each investment advisory agreement between a fund and its
investment adviser will continue in effect from year to year only if its
continuance is approved at least annually by the fund's board members, including
by a vote of a majority of the board members who are not parties to the advisory
agreement or "interested persons" of any parties (the "Independent Board
Members"), cast in person at a meeting called for the purpose of considering
such approval. In connection with such approvals, the fund's board members must
request and evaluate, and the investment adviser is required to furnish, such
information as may be reasonably necessary to evaluate the terms of the advisory
agreement. Accordingly, at a meeting held on May 27-29, 2009 (the "May
Meeting"), the Boards of Trustees or Directors (as the case may be) (each a
"Board" and each Trustee or Director, a "Board Member") of the Funds, including
a majority of the Independent Board Members, considered and approved the
continuation of the advisory agreements (each an "Advisory Agreement") between
each Fund and Nuveen Asset Management ("NAM") for an additional one-year period.
In preparation for their considerations at the May Meeting, the Board also held
a separate meeting on April 21-22, 2009 (the "April Meeting"). Accordingly, the
factors considered and determinations made regarding the renewals by the
Independent Board Members include those made at the April Meeting.
In addition, in evaluating the Advisory Agreements, the Independent Board
Members reviewed a broad range of information relating to the Funds and NAM,
including absolute performance, fee and expense information for the Funds as
well as comparative performance, fee and expense information for a comparable
peer group of funds, the performance information of recognized and/or customized
benchmarks (as applicable) of the Funds, the profitability of Nuveen for its
advisory activities (which includes its wholly owned subsidiaries other than
Winslow Capital Management, Inc. ("Winslow Capital"), which was recently
acquired in December 2008), and other information regarding the organization,
personnel, and services provided by NAM. The Independent Board Members also met
quarterly as well as at other times as the need arose during the year and took
into account the information provided at such meetings and the knowledge gained
therefrom. Prior to approving the renewal of the Advisory Agreements, the
Independent Board Members reviewed the foregoing information with their
independent legal counsel and with management, reviewed materials from
independent legal counsel describing applicable law and their duties in
reviewing advisory contracts, and met with independent legal counsel in private
sessions without management present. The Independent Board Members considered
the legal advice provided
92 Nuveen Investments
by independent legal counsel and relied upon their knowledge of NAM, its
services and the Funds resulting from their meetings and other interactions
throughout the year and their own business judgment in determining the factors
to be considered in evaluating the Advisory Agreements. Each Board Member may
have accorded different weight to the various factors in reaching his or her
conclusions with respect to a Fund's Advisory Agreement. The Independent Board
Members did not identify any single factor as all-important or controlling. The
Independent Board Members' considerations were instead based on a comprehensive
consideration of all the information presented. The principal factors considered
by the Board and its conclusions are described below.
A. NATURE, EXTENT AND QUALITY OF SERVICES
In considering renewal of the Advisory Agreements, the Independent Board Members
considered the nature, extent and quality of NAM's services, including advisory
services and administrative services. The Independent Board Members reviewed
materials outlining, among other things, NAM's organization and business; the
types of services that NAM or its affiliates provide and are expected to provide
to the Funds; the performance record of the applicable Fund (as described in
further detail below); and any initiatives Nuveen had taken for the applicable
fund product line.
In reviewing the services provided and the initiatives undertaken during the
past year, the Independent Board Members recognized the severe market turmoil
experienced in the capital markets during recent periods, including sustained
periods of high volatility, credit disruption and government intervention. The
Independent Board Members considered NAM's efforts, expertise and other actions
taken to address matters as they arose that impacted the Funds. The Independent
Board Members recognized the role of the Investment Services group which, among
other things, monitors the various positions throughout the Nuveen fund complex
to identify and address any systematic risks. In addition, the Capital Markets
Committee of NAM provides a multi-departmental venue for developing new policies
to mitigate any risks. The Independent Board Members further recognized NAM's
continuous review of the Nuveen funds' investment strategies and mandates in
seeking to continue to refine and improve the investment process for the funds,
particularly in light of market conditions. With respect to closed-end funds
that issued auction rate preferred shares ("ARPs") or that otherwise utilize
leverage, the Independent Board Members noted, in particular, NAM's efforts in
refi-nancing the preferred shares of such funds frozen by the collapse of the
auction rate market and managing leverage during a period of rapid market
declines, particularly for the non-equity funds. Such efforts included
negotiating and maintaining the availability of bank loan facilities and other
sources of credit used for investment purposes or to satisfy liquidity needs,
liquidating portfolio securities during difficult times to meet leverage ratios,
and seeking alternative forms of debt and other leverage that may over time
reduce financing costs associated with ARPs and enable the funds that have
issued ARPs to restore liquidity to ARPs holders. The Independent Board Members
also noted Nuveen's continued commitment and efforts to keep investors and
financial advisers
Nuveen Investments 93
Annual Investment Management Agreement Approval Process (continued)
informed as to its progress with the ARPs through, among other things,
conference calls, emails, press releases, information posted on its website, and
telephone calls and in-person meetings with financial advisers. In addition to
the foregoing, the Independent Board Members also noted the additional services
that NAM or its affiliates provide to closed-end funds, including, in
particular, Nuveen's continued commitment to supporting the secondary market for
the common shares of its closed-end funds through a variety of programs designed
to raise investor and analyst awareness and understanding of closed-end funds.
These efforts include maintaining an investor relations program to provide
timely information and education to financial advisers and investors; providing
advertising and marketing for the closed-end funds; maintaining websites; and
providing educational seminars.
As part of their review, the Independent Board Members also evaluated the
background, experience and track record of NAM's investment personnel. In this
regard, the Independent Board Members considered any changes in the personnel,
and the impact on the level of services provided to the Funds, if any. The
Independent Board Members also reviewed information regarding portfolio manager
compensation arrangements to evaluate NAM's ability to attract and retain high
quality investment personnel, preserve stability, and reward performance but not
provide an incentive for taking undue risks.
In addition to advisory services, the Independent Board Members considered the
quality of administrative services provided by NAM and its affiliates including
product management, fund administration, oversight of service providers,
shareholder services, administration of Board relations, regulatory and
portfolio compliance and legal support. Given the importance of compliance, the
Independent Board Members considered NAM's compliance program, including the
report of the chief compliance officer regarding the Funds' compliance policies
and procedures.
Based on their review, the Independent Board Members found that, overall, the
nature, extent and quality of services provided (and expected to be provided) to
the respective Funds under the Advisory Agreements were satisfactory.
B. THE INVESTMENT PERFORMANCE OF THE FUNDS AND NAM
The Board considered the investment performance of each Fund, including the
Fund's historic performance as well as its performance compared to funds with
similar investment objectives (the "Performance Peer Group") based on data
provided by an independent provider of mutual fund data as well as recognized
and/or customized benchmarks (as applicable). The Independent Board Members
reviewed performance information including, among other things, total return
information compared with the Fund's Performance Peer Group and recognized
and/or customized benchmarks (as applicable) for the quarter-, one-, three- and
five-year periods (as applicable) ending December 31, 2008 and for the same
periods (as applicable) ending March 31, 2009. The Independent Board Members
also reviewed performance information of the Nuveen municipal funds managed by
NAM in the aggregate ranked by peer group and
94 Nuveen Investments
the performance of such funds, in the aggregate, relative to their benchmark.
This information supplemented the Fund performance information provided to the
Board at each of its quarterly meetings.
In comparing a fund's performance with that of its Performance Peer Group, the
Independent Board Members took into account that the closest Performance Peer
Group in certain instances may not adequately reflect the respective fund's
investment objectives and strategies thereby hindering a meaningful comparison
of the fund's performance with that of the Performance Peer Group. The
Independent Board Members further considered the performance of the Funds in the
context of the volatile market conditions during the past year, and their impact
on various asset classes and the portfolio management of the Funds.
Based on their review and factoring in the severity of market turmoil in 2008,
the Independent Board Members determined that each Fund's investment performance
over time had been satisfactory.
C. FEES, EXPENSES AND PROFITABILITY
1. FEES AND EXPENSES
The Board evaluated the management fees and expenses of each Fund
reviewing, among other things, such Fund's gross management fees, net
management fees and total expense ratios (before and after expense
reimbursements and/or waivers) in absolute terms as well as compared to
the fee and expenses of a comparable universe of unaffiliated funds based
on data provided by an independent fund data provider the "Peer Universe")
and in certain cases, to a more focused subset of funds in the Peer
Universe (the "Peer Group").
The Independent Board Members further reviewed data regarding the
construction of the applicable Peer Universe and Peer Group. In reviewing
the comparisons of fee and expense information, the Independent Board
Members took into account that in certain instances various factors such
as the asset level of a fund relative to peers, the size and particular
composition of the Peer Universe or Peer Group, the investment objectives
of the peers, expense anomalies, changes in the funds comprising the Peer
Universe or Peer Group from year to year, levels of reimbursement and the
timing of information used may impact the comparative data, thereby
limiting the ability to make a meaningful comparison. In addition, the
Independent Board Members also considered, among other things, the
differences in the use and type of leverage compared to the peers. The
Independent Board Members also considered the differences in the states
reflected in the respective Peer Group. In reviewing the fee schedule for
a Fund, the Independent Board Members also considered the fund-level and
complex-wide breakpoint schedules (described in further detail below) and
any fee waivers and reimbursements provided by Nuveen (applicable, in
particular, for certain closed-end funds launched since 1999).
Nuveen Investments 95
Annual Investment Management Agreement Approval Process (continued)
Based on their review of the fee and expense information provided, the
Independent Board Members determined that each Fund's management fees and
net total expense ratio were reasonable in light of the nature, extent and
quality of services provided to the Fund.
2. COMPARISONS WITH THE FEES OF OTHER CLIENTS
The Independent Board Members further reviewed information regarding the
nature of services and fee rates offered by NAM to other clients. Such
other clients include NAM's municipal separately managed accounts. In
evaluating the comparisons of fees, the Independent Board Members noted
that the fee rates charged to the Funds and other clients vary, among
other things, because of the different services involved and the
additional regulatory and compliance requirements associated with
registered investment companies, such as the Funds. Accordingly, the
Independent Board Members considered the differences in the product types,
including, but not limited to, the services provided, the structure and
operations, product distribution and costs thereof, portfolio investment
policies, investor profiles, account sizes and regulatory requirements.
The Independent Board Members noted, in particular, that the range of
services provided to the Funds (as discussed above) is much more extensive
than that provided to separately managed accounts. Given the inherent
differences in the products, particularly the extensive services provided
to the Funds, the Independent Board Members believe such facts justify the
different levels of fees.
3. PROFITABILITY OF NUVEEN
In conjunction with its review of fees, the Independent Board Members also
considered the profitability of Nuveen for its advisory activities (which
incorporated Nuveen's wholly-owned affiliated sub-advisers other than
Winslow Capital) and its financial condition. The Independent Board
Members reviewed the revenues and expenses of Nuveen's advisory activities
for the last two years, the allocation methodology used in preparing the
profitability data and an analysis of the key drivers behind the changes
in revenues and expenses that impacted profitability in 2008. In addition,
the Independent Board Members reviewed information regarding the financial
results of Nuveen for 2008 based on its Form 8-K filed on March 31, 2009.
The Independent Board Members noted this information supplemented the
profitability information requested and received during the year to help
keep them apprised of developments affecting profitability (such as
changes in fee waivers and expense reimbursement commitments). In this
regard, the Independent Board Members noted that they had also appointed
an Independent Board Member as a point person to review and keep them
apprised of changes to the profitability analysis and/or methodologies
during the year. The Independent Board Members also considered Nuveen's
revenues for advisory activities, expenses, and profit margin compared to
that of various unaffiliated management firms with similar amounts of
96 Nuveen Investments
assets under management and relatively comparable asset composition
prepared by Nuveen.
In reviewing profitability, the Independent Board Members recognized the
subjective nature of determining profitability which may be affected by
numerous factors including the allocation of expenses. Further, the
Independent Board Members recognized the difficulties in making
comparisons as the profitability of other advisers generally is not
publicly available and the profitability information that is available for
certain advisers or management firms may not be representative of the
industry and may be affected by, among other things, the adviser's
particular business mix, capital costs, types of funds managed and expense
allocations. Notwithstanding the foregoing, the Independent Board Members
reviewed Nuveen's methodology and assumptions for allocating expenses
across product lines to determine profitability. In reviewing
profitability, the Independent Board Members recognized Nuveen's
investment in its fund business.
Based on their review, the Independent Board Members concluded that
Nuveen's level of profitability for its advisory activities was reasonable
in light of the services provided.
In evaluating the reasonableness of the compensation, the Independent
Board Members also considered other amounts paid to NAM by the Funds as
well as any indirect benefits (such as soft dollar arrangements, if any)
NAM and its affiliates receive, or are expected to receive, that are
directly attributable to the management of the Funds, if any. See Section
E below for additional information on indirect benefits NAM may receive as
a result of its relationship with the Funds. Based on their review of the
overall fee arrangements of each Fund, the Independent Board Members
determined that the advisory fees and expenses of the respective Fund were
reasonable.
D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE
With respect to economies of scale, the Independent Board Members have
recognized the potential benefits resulting from the costs of a fund being
spread over a larger asset base, although economies of scale are difficult to
measure and predict with precision, particularly on a fund-by-fund basis. One
method to help ensure the shareholders share in these benefits is to include
breakpoints in the advisory fee schedule. Generally, management fees for funds
in the Nuveen complex are comprised of a fund-level component and a
complex-level component, subject to certain exceptions. Accordingly, the
Independent Board Members reviewed and considered the applicable fund-level
breakpoints in the advisory fee schedules that reduce advisory fees as asset
levels increase. In this regard, the Independent Board Members noted that
although closed-end funds may from time-to-time make additional share offerings,
the growth of their assets will occur primarily through the appreciation of such
funds' investment portfolio.
Nuveen Investments 97
Annual Investment Management Agreement Approval Process (continued)
While economies of scale result when costs can be spread over a larger asset
base, the Independent Board Members also recognized that the asset levels
generally declined in 2008 due to, among other things, the market downturn.
Accordingly, for funds with a reduction in assets under management, advisory fee
levels may have increased as breakpoints in the fee schedule were no longer
surpassed.
In addition to fund-level advisory fee breakpoints, the Board also considered
the Funds' complex-wide fee arrangement. Pursuant to the complex-wide fee
arrangement, the fees of the funds in the Nuveen complex generally are reduced
as the assets in the fund complex reach certain levels. The complex-wide fee
arrangement seeks to provide the benefits of economies of scale to fund
shareholders when total fund complex assets increase, even if assets of a
particular fund are unchanged or have decreased. The approach reflects the
notion that some of Nuveen's costs are attributable to services provided to all
its funds in the complex and therefore all funds benefit if these costs are
spread over a larger asset base. Generally, the complex-wide pricing reduces
Nuveen's revenue because total complex fund assets have consistently grown in
prior years. As noted, however, total fund assets declined in 2008 resulting in
a smaller downward adjustment of revenues due to complex-wide pricing compared
to the prior year.
Based on their review, the Independent Board Members concluded that the
breakpoint schedules and complex-wide fee arrangement were acceptable and
reflect economies of scale to be shared with shareholders when assets under
management increase.
E. INDIRECT BENEFITS
In evaluating fees, the Independent Board Members received and considered
information regarding potential "fall out" or ancillary benefits NAM or its
affiliates may receive as a result of its relationship with each Fund. In this
regard, the Independent Board Members considered revenues received by affiliates
of NAM for serving as agent at Nuveen's trading desk.
In addition to the above, the Independent Board Members considered whether NAM
received any benefits from soft dollar arrangements whereby a portion of the
commissions paid by a Fund for brokerage may be used to acquire research that
may be useful to NAM in managing the assets of the Funds and other clients. The
Independent Board Members noted that NAM does not currently have any soft dollar
arrangements; however, to the extent certain bona fide agency transactions that
occur on markets that traditionally trade on a principal basis and riskless
principal transactions are considered as generating "commissions," NAM intends
to comply with the applicable safe harbor provisions.
Based on their review, the Independent Board Members concluded that any indirect
benefits received by NAM as a result of its relationship with the Funds were
reasonable and within acceptable parameters.
98 Nuveen Investments
F. OTHER CONSIDERATIONS
The Independent Board Members did not identify any single factor discussed
previously as all-important or controlling. The Board Members, including the
Independent Board Members, unanimously concluded that the terms of the Advisory
Agreements are fair and reasonable, that NAM's fees are reasonable in light of
the services provided to each Fund and that the Advisory Agreements be renewed.
Nuveen Investments 99
Reinvest Automatically Easily and Conveniently
NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET UP YOUR
REINVESTMENT ACCOUNT.
NUVEEN CLOSED-END FUNDS 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
greater of the net asset value or 95% of the then-current market price. If the
shares are trading at less than net asset value, shares for your account will be
purchased on the open market. If the Plan Agent begins purchasing Fund shares on
the open market while shares are trading below net asset value, but the Fund's
shares subsequently trade at or above their net asset value before the Plan
Agent is able to complete its purchases, the Plan Agent may cease open-market
purchases and may invest the uninvested portion of the distribution in
newly-issued Fund shares at a price equal to the greater of the shares' net
asset value or 95% of the shares' market value on the last business day
immediately prior to the purchase date. 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
100 Nuveen Investments
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.
Nuveen Investments 101
Glossary of Terms Used in this Report
o AUCTION RATE BOND: An auction rate bond is a security whose interest
payments are adjusted periodically through an auction process, which
process typically also serves as a means for buying and selling the bond.
Auctions that fail to attract enough buyers for all the shares offered for
sale are deemed to have "failed," with current holders receiving a
formula-based interest rate until the next scheduled auction.
o 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.
o 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.
o INVERSE FLOATERS: Inverse floating rate securities, also known as inverse
floaters, 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.
102 Nuveen Investments
o 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.
o MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An
investment's current annualized dividend divided by its current market
price.
o NET ASSET VALUE (NAV): A Fund's NAV per common share is calculated by
subtracting the liabilities of the Fund (including any Preferred shares
issued in order to leverage the Fund) from its total assets and then
dividing the remainder by the number of common shares outstanding. Fund
NAVs are calculated at the end of each business day.
o 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.
o ZERO COUPON BOND: A zero coupon bond does not pay a regular interest
coupon to its holders during the life of the bond. Tax-exempt income to
the holder of the bond comes from accretion of the difference between the
original purchase price of the bond at issuance and the par value of the
bond at maturity and is effectively paid at maturity. The market prices of
zero coupon bonds generally are more volatile than the market prices of
bonds that pay interest periodically.
Nuveen Investments 103
Notes
104 Nuveen Investments
Other Useful Information
BOARD OF DIRECTORS/TRUSTEES
John P. Amboian
Robert P. Bremner
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Judith M. Stockdale
Carole E.
Stone Terence J. Toth
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
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
You may obtain (i) each Fund's quarterly portfolio of investments, (ii)
information regarding how the Funds voted proxies relating to portfolio
securities held during the twelve-month period ended June 30, 2009, and (iii) a
description of the policies and procedures that the Funds used to determine how
to vote proxies relating to portfolio securities without charge, upon request,
by calling Nuveen Investments toll-free at (800) 257-8787 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 (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 100 F Street NE, Washington, D.C. 20549.
CEO CERTIFICATION DISCLOSURE
Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange
(NYSE) the annual CEO certification as required by Section 303A.12(a) of the
NYSE Listed Company Manual.
Each Fund has filed with the SEC the certification of its Chief Executive
Officer and Chief Financial Officer required by Section 302 of the
Sarbanes-Oxley Act.
COMMON AND PREFERRED SHARE INFORMATION
Each Fund intends to repurchase and/or redeem shares of its own common or
preferred stock in the future at such times and in such amounts as is deemed
advisable. During the period covered by this report, the Funds repurchased
and/or redeemed shares of their common and/or preferred stock as shown in the
accompanying table.
COMMON SHARES PREFERRED SHARES
FUND REPURCHASED REDEEMED
NPC 7,100 --
NCL 11,700 --
NCU 23,200 80
NAC -- --
NVX 32,400 469
NZH -- --
NKL 13,700 --
NKX -- --
Any future repurchases and/or redemptions will be reported to shareholders in
the next annual or semi-annual report.
Nuveen Investments 105
Nuveen Investments:
Serving Investors for Generations
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.
Nuveen Investments is a global investment management firm that seeks to help
secure the long-term goals of institutions and high net worth investors as well
as the consultants and financial advisors who serve them. Nuveen Investments
markets its growing range of specialized investment solutions under the
high-quality brands of HydePark, NWQ, Nuveen, Santa Barbara, Symphony,
Tradewinds and Winslow Capital. In total, the Company managed $128 billion of
assets on June 30, 2009.
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.
Learn more about Nuveen Funds at: WWW.NUVEEN.COM/CEF
o Share prices
o Fund details
o Daily financial news
o Investor education
o Interactive planning tools
Distributed by
Nuveen Investments, LLC
333 West Wacker Drive
Chicago, IL 60606
www.nuveen.com It's not what you earn,
it's what you keep.(R)
ESA-B-0809D
ITEM 2. CODE OF ETHICS.
Not applicable to this filing.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable to this filing.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable to this filing.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to this filing.
ITEM 6. SCHEDULE OF INVESTMENTS.
(a) See Portfolio of Investments in Item 1.
(b) Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrant's Board of Directors or Trustees
implemented after the registrant last provided disclosure in response to
this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")(17 CFR
240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter
of the period covered by this report that has materially affected, or
is reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable to
this filing.
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: See
Ex-99.CERT attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons: Not applicable.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR
270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference: See Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen Insured California Tax-Free Advantage Municipal Fund
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By (Signature and Title) /s/ Kevin J. McCarthy
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Kevin J. McCarthy
(Vice President and Secretary)
Date: November 6, 2009
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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
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Gifford R. Zimmerman
Chief Administrative Officer
(principal executive officer)
Date: November 6, 2009
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By (Signature and Title) /s/ Stephen D. Foy
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Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: November 6, 2009
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