UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-09161
---------------------
Nuveen California Dividend Advantage Municipal Fund
------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Address of principal executive offices) (Zip code)
Jessica R. Droeger
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: August 31
------------------
Date of reporting period: February 28, 2006
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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.
SEMIANNUAL REPORT February 28, 2006
Nuveen Investments
Municipal Exchange-Traded
Closed-End Funds
NUVEEN INSURED
CALIFORNIA PREMIUM
INCOME MUNICIPAL
FUND, INC.
NPC
NUVEEN INSURED
CALIFORNIA PREMIUM
INCOME MUNICIPAL
FUND 2, INC.
NCL
NUVEEN CALIFORNIA
PREMIUM INCOME
MUNICIPAL FUND
NCU
NUVEEN CALIFORNIA
DIVIDEND ADVANTAGE
MUNICIPAL FUND
NAC
NUVEEN CALIFORNIA
DIVIDEND ADVANTAGE
MUNICIPAL FUND 2
NVX
NUVEEN CALIFORNIA
DIVIDEND ADVANTAGE
MUNICIPAL FUND 3
NZH
NUVEEN INSURED
CALIFORNIA DIVIDEND
ADVANTAGE
MUNICIPAL FUND
NKL
NUVEEN INSURED
CALIFORNIA TAX-FREE
ADVANTAGE
MUNICIPAL FUND
NKX
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Photo of: Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
Chairman's
LETTER TO SHAREHOLDERS
Once again, I am pleased to report that over the six month period covered by
this report your Fund continued to provide you with attractive monthly tax-free
income. For more details about the management strategy and performance of your
Fund, please read the Portfolio Manager's Comments, the Distribution and Share
Price Information, and the Performance Overview sections of this report.
Municipal bonds can be an important building block in a well balanced investment
portfolio. In addition to providing attractive tax-free monthly income, a
municipal
"PORTFOLIO DIVERSIFICATION IS A RECOGNIZED WAY TO TRY TO REDUCE SOME OF THE RISK
THAT COMES WITH INVESTING."
bond investment like your Fund may help you achieve and benefit from greater
portfolio diversification. Portfolio diversification is a recognized way to try
to reduce some of the risk that comes with investing. I encourage you to contact
your personal financial advisor who can help explain this important investment
strategy.
Nuveen Investments is pleased to offer you choices when it comes to receiving
your fund reports. In addition to mailed print copies, you can also sign up to
receive future Fund reports and other Fund information by e-mail and the
Internet. Not only will you be able to receive the information faster, but this
also may help lower your Fund's expenses. The inside front cover of this report
contains information on how you can sign up.
We are grateful that you have chosen us as a partner as you pursue your
financial goals, and we look forward to continuing to earn your trust in the
months and years ahead. At Nuveen Investments, our mission continues to be to
assist you and your financial advisor by offering investment services and
products that can help you to secure your financial objectives.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
April 3, 2006
Nuveen California Municipal Exchange-Traded
Closed-End Funds (NPC, NCL, NCU, NAC, NVX, NZH, NKL, NKX)
Portfolio Manager's
COMMENTS
Portfolio manager Scott Romans reviews key investment strategies and the
semiannual performance of these eight California Funds. Scott, who joined Nuveen
in 2000, has managed NCU, NAC, NVX, NZH, NKL, and NKX since 2003. He assumed
portfolio management responsibility for NPC and NCL in May 2005.
WHAT KEY STRATEGIES WERE USED TO MANAGE THE CALIFORNIA FUNDS DURING THE SIX
MONTHS ENDED FEBRUARY 28, 2006?
During this reporting period, we saw a general increase in interest rates across
the yield curve, with short-term rates rising faster than longer-term rates.
Between September 1, 2005, and February 28, 2006, the Federal Reserve
implemented four increases of 0.25% each in the fed funds rate, raising this
short-term target by 100 basis points. In contrast, the yield on the benchmark
10-year U.S. Treasury note ended February 2006 at 4.55%, up from 4.02% six
months earlier, while the yield on the Bond Buyer 25 Revenue Bond Index, a
widely followed measure of longer-term municipal market rates, was 5.04% at the
end of February 2006, an increase of 17 basis points from the end of August
2005. As interest rates increased, bond valuations generally declined, and the
yield curve flattened as shorter-term rates approached the levels of longer-term
rates.
In this environment, one of our key strategies continued to be careful duration1
management. As the yield curve flattened, we continued to see a substantial
number of advance refundings2 in the California market. While these refundings
benefited the Funds' performance to a certain extent during this period, they
also had a shortening effect on the Funds' durations. To help us maintain these
durations within our preferred strategic range, our purchase activity focused
mainly on attractively priced bonds with longer durations, that is, bonds
maturing in 25 to 30 years. In the current rate environment, we believe that
bonds in this part of the yield curve generally offer more attractive
opportunities and the best values.
In looking for potential purchase candidates, we kept an opportunistic eye
toward all types of issuance that we believed could add value to the Funds'
portfolios, balancing the goal of performance potential with the need to support
the Funds' income streams. Overall, portfolio activity was relatively light, due
in part to the decline in California municipal supply during this six-month
period. This was especially true during the first
1 Duration is a measure of a bond's price sensitivity as interest rates
change, with longer duration bonds displaying more sensitivity to these
changes than bonds with shorter durations.
2 Advance refundings, also known as pre-refundings or refinancings, occur
when an issuer sells new bonds and uses the proceeds to fund principal and
interest payments of older existing bonds. This process often results in
lower net borrowing costs for bond issuers.
4
two months of 2006, when new issuance in the state dropped 27% from levels seen
in early 2005. While we continued to emphasize maintaining weightings of bonds
rated BBB or lower and nonrated bonds in the four noninsured Funds and NKL and
NKX (which can invest up to 20% of their assets in uninsured investment-grade
quality securities), tighter supply meant fewer opportunities to find
lower-rated issues that we believed represented value for shareholders.
Therefore, the majority of our new purchases for these six Funds were
higher-rated credits, while NPC and NCL continued to invest in insured and/or
U.S. guaranteed securities.
One area where we did find opportunities to purchase lower-rated bonds was the
tobacco sector. In NCU, NAC, NVX, and NZH, we replaced some pre-refunded issues
with BBB rated tobacco bonds issued by Sonoma County. This helped us maintain
the tobacco allocations of these four Funds at preferred levels. Although the
Sonoma County tobacco bonds had lower coupons and shorter maturities than we had
strategically targeted for these Funds during this period, we believed that this
was offset by the attractive structures and return potential offered by these
credits.
In NKL and NKX, our duration management strategies also included the use of
forward interest rate swaps, a type of derivative financial instrument. As
discussed in our last shareholder report, we began using these swaps in late
2004 in an effort to reduce the interest rate risk of these two Funds. These
hedges were not an attempt to profit from correctly predicting the timing and
direction of interest rate movements. Instead, our sole objective was to reduce
the Funds' durations (and resulting pricing sensitivity) without having a
negative impact on their income streams or common share dividends over the short
term. During this reporting period, the hedges performed as expected and had a
positive impact on the performances of NKL and NKX. As long-term interest rates
rose, the value of the hedges increased while the valuation of the Funds'
holdings generally declined. We believe this hedging strategy was effective in
achieving the intended goal of helping to reduce the net asset value (NAV)
volatility of these Funds, and in February 2006, we removed the hedges.
5
As part of our duration management strategies during this period, we were also
selectively selling holdings with shorter durations, including bonds with very
short maturities, bonds priced to short calls, and pre-refunded bonds. The
proceeds from these sales, as well as proceeds from any calls, were then
generally reinvested in the 25- to 30-year part of the yield curve as attractive
opportunities arose.
HOW DID THE FUNDS PERFORM?
Individual results for these California Funds, as well as for relevant indexes
and peer groups, are presented in the accompanying table.
TOTAL RETURNS ON NET ASSET VALUE*
For periods ended 2/28/06
NONINSURED FUNDS 6-MONTH 1-YEAR 5-YEAR 10-YEAR
--------------------------------------------------------------------------------
NCU 0.81% 5.23% 7.62% 7.10%
--------------------------------------------------------------------------------
NAC 1.46% 5.98% 8.14% NA
--------------------------------------------------------------------------------
NVX 1.43% 6.65% NA NA
--------------------------------------------------------------------------------
NZH 1.58% 6.96% NA NA
--------------------------------------------------------------------------------
Lehman Brothers CA
Tax-Exempt
Bond Index3 1.16% 4.37% 5.58% 5.92%
--------------------------------------------------------------------------------
Lipper CA
Municipal Debt
Funds Average4 1.63% 6.49% 6.94% 6.43%
--------------------------------------------------------------------------------
INSURED FUNDS
--------------------------------------------------------------------------------
NPC 0.49% 4.32% 6.62% 6.27%
--------------------------------------------------------------------------------
NCL 0.87% 4.75% 6.67% 6.69%
--------------------------------------------------------------------------------
NKL 1.46% 5.98% NA NA
--------------------------------------------------------------------------------
NKX 1.49% 6.02% NA NA
--------------------------------------------------------------------------------
Lehman Brothers Insured
CA Tax-Exempt
Bond Index3 1.31% 4.29% 5.57% 5.99%
--------------------------------------------------------------------------------
Lipper Insured
CA Municipal Debt
Funds Average5 1.46% 5.69% 6.00% 6.12%
--------------------------------------------------------------------------------
*Six-month returns are cumulative; returns for one year, five years, and ten
years are annualized.
Past performance is not predictive of future results. Current performance may be
higher or lower than the data shown. Returns do not reflect the deduction of
taxes that shareholders may have to pay on Fund distributions or upon the sale
of Fund shares.
For additional information, see the individual Performance Overview for your
Fund in this report.
3 The Lehman Brothers California Tax-Exempt Bond Index is an unleveraged,
unmanaged index comprising a broad range of investment-grade California
municipal bonds, while the Lehman Brothers Insured California Tax-Exempt
Bond Index is an unleveraged, unmanaged index containing a broad range of
insured California municipal bonds. Results for the Lehman indexes do not
reflect any expenses.
4 The Lipper California Municipal Debt Funds average is calculated using the
returns of all closed-end exchange-traded funds in this category for each
period as follows: 6 months, 26; 1 year, 26; 5 years, 15; and 10 years, 13.
Fund and Lipper returns assume reinvestment of dividends.
5 The Lipper Insured California Municipal Debt Funds average is calculated
using the returns of all closed-end exchange-traded funds in its category
for each period as follows: 6 months, 13; 1 year, 13; 5 years, 8; and 10
years, 6. Fund and Lipper returns assume reinvestment of dividends.
6
For the six months ended February 28, 2006, the cumulative returns on NAV for
NAC, NVX, and NZH exceeded the return on their Lehman Brothers California
municipal benchmark, while NCU trailed this measure. NZH performed relatively in
line with the average return for the Lipper California peer group, while the
other three noninsured Funds underperformed this average. Among the insured
Funds, the returns on NAV for NKL and NKX outperformed the return on the Lehman
Brothers Insured California Tax-Exempt Bond Index, while NPC and NCL lagged the
index return for the six month reporting period. NKL and NKX also performed in
line with the average return for the Lipper Insured California peer group, while
NPC and NCL trailed the group average.
During this reporting period, positive contributors to the Funds' returns
included allocations to lower-rated credits (in the four noninsured Funds, as
well as NKL, and NKX), yield curve and duration positioning, and--to a more
limited extent-- pre-refunding activity. As mentioned earlier, the hedging
strategies we employed in NKL and NKX also had a positive impact on the
performance of these two Funds for the period.
With bonds rated BBB or lower and nonrated generally outperforming other credit
quality sectors during this period, allocations to these lower-quality credits
were a major driver of performance among the six Funds that invest in noninsured
bonds. At the same time, the performances of NPC and NCL were hampered by the
fact that, as insured Funds, they could not hold any of these lower rated
credits. The performance of the lower- credit quality issues during this period
was largely the result of investor demand for the higher yields typically
associated with these bonds, which drove up their value. As of February 28,
2006, bonds rated BBB or lower and nonrated bonds accounted for 16% to 17% of
the portfolios of the noninsured Funds, while NKL and NKX each had an allocation
of approximately 6% to bonds rated BBB. Among the lower-rated bonds making
positive contributions to the Funds' cumulative returns for this period were
healthcare (including hospitals and long-term care), housing, and tobacco
credits. At period end, the six noninsured Funds held between 2% and 4% of their
portfolios in unenhanced tobacco bonds.
7
As the yield curve continued to flatten over the course of this period, yield
curve and duration positioning also played important roles in the Funds'
performances. On the whole, bonds priced to intermediate calls (i.e., between
2009 and 2012, the part of the curve that experienced the greatest rate changes)
were the most impacted by the changes in the yield curve. As a result, these
bonds generally underperformed those priced to very short calls (i.e., 2006) and
longer calls (i.e., 2014 and beyond). Yield curve positioning or, more
specifically, greater exposure to those parts of the yield curve that performed
well helped the performance of these Funds during this period.
As mentioned earlier, we also continued to see a substantial number of
refinancings during this period, which benefited the Funds through price
appreciation and enhanced credit quality. The impact of a bond's price
appreciation on the Fund's total return is determined by the structure of the
bond being refinanced. For example, the advance refunding of a bond with a 7%
coupon produces greater price appreciation, and therefore greater positive
impact on total return, than the refunding of a 5% coupon bond. As the yield
curve flattened, we saw more lower coupon bonds being pre-refunded, which meant
that the positive impact of price appreciation from advance refundings was less
than in the previous reporting period. In addition, the new bonds that were
issued to replace those that were pre-refunded were now higher-quality
securities with new maturities and call dates, some of which fell into that part
of the yield curve that underperformed during this period. As a result, while
the Funds benefited immediately from the initial price appreciation associated
with advance refundings, some of their pre-refunded holdings subsequently did
not perform well.
Additionally, the rising interest rate environment of this six-month period
generally meant that the Funds' holdings of older pre-refunded bonds tended to
underperform the general municipal market, due primarily to the shorter
effective maturities of these bonds. This was especially true in NPC, which held
approximately 30% of its portfolio in older pre-refunded bonds as of February
28, 2006. In addition to the factors mentioned above, security-specific
issues--including the timing, size, and degree of credit quality enhancement of
advance refundings--also accounted for some of the performance differential
among these Funds. For example, the difference in exposure to bonds that were
newly advance refunded during this period (5.2% in NCL versus 1.5% in NPC)
explained much of the difference in performance between these two Funds.
8
HOW WERE THE FUNDS POSITIONED IN TERMS OF CREDIT QUALITY AND BOND CALLS AS OF
FEBRUARY 28, 2006?
We continued to believe that maintaining strong credit quality was an important
requirement. As of February 28, 2006, the four noninsured Funds continued to
offer excellent credit quality, with allocations of bonds rated AAA/U.S.
guaranteed and AA ranging from 70% in NCU and NZH and 70% in NAC to 73% in NVX.
NPC and NCL continued to be 100% invested in insured and/or U.S. guaranteed
securities, while NKL and NKX, which can invest up to 20% of their assets in
uninsured investment-grade quality securities, had each allocated 84% of their
portfolios to insured bonds.
As of February 28, 2006, potential call exposure for the period March 2006
through the end of 2007 ranged from zero in NKL, 1% in NAC, 2% in NVX, 3% in
NZH, and 4% in NKX to 10% in NCU, 12% in NPC, and 16% in NCL. We continued to
work to manage the call structure of these Funds, especially older Funds such as
NPC, NCL, and NCU. The number of actual bond calls in all of these Funds depends
largely on future market interest rates.
9
Dividend and Share Price
INFORMATION
All of the Funds in this report use leverage to potentially enhance
opportunities for additional income for common shareholders. The extent of this
benefit is tied in part to the short-term rates these leveraged Funds pay their
MuniPreferred(R) shareholders. During periods of low short-term rates, leveraged
Funds generally pay lower dividends to their MuniPreferred shareholders, which
can leave more earnings to support common share dividends. However, when
short-term interest rates rise, as they did during this reporting period, the
Funds' borrowing costs also rise, impacting the Funds' expenses, income streams,
and total returns. While leveraging still provided benefits for common
shareholders, the extent of these benefits was reduced. The Funds' income
streams were also impacted as the proceeds from older, higher-yielding bonds
that matured or were called were reinvested into bonds generally offering lower
yields. While the dividends of all eight Funds remained stable throughout the
six-month reporting period ended February 28, 2006, NPC, NCL, NCU, NAC, NVX, and
NZH announced monthly dividend reductions on March 1, 2006.
Due to capital gains generated by normal portfolio activity, common shareholders
of the following Funds received capital gains and/or net ordinary income
distributions at the end of December 2005 as follows:
LONG-TERM CAPITAL GAINS ORDINARY INCOME
(PER SHARE) (PER SHARE)
--------------------------------------------------------------------------------
NPC $0.1367 $0.0109
--------------------------------------------------------------------------------
NCU $0.0122 --
--------------------------------------------------------------------------------
NAC $0.0334 --
--------------------------------------------------------------------------------
All of the Funds in this report seek to pay stable dividends at rates that
reflect each Fund's past results and projected future performance. During
certain periods, each Fund may pay dividends at a rate that may be more or less
than the amount of net investment income actually earned by the Fund during the
period. If a Fund has cumulatively earned more than it has paid in dividends, it
holds the excess in reserve as undistributed net investment income (UNII) as
part of the Fund's NAV. Conversely, if a Fund has cumulatively paid dividends in
excess of its earnings, the excess constitutes negative UNII that is likewise
reflected in the Fund's NAV. Each Fund will, over time, pay all of its net
investment income as dividends to shareholders. As of February 28, 2006, all of
the Funds in this report, except NKX, had positive UNII balances for financial
statement purposes and positive UNII balances, based on our best estimate, for
tax purposes. NKX
10
had a negative UNII balance for financial statement purposes and a positive UNII
balance, based on our best estimate, for tax purposes.
At the end of the reporting period, the Funds' share prices were trading at
premiums or discounts to their NAVs as shown in the accompanying chart:
2/28/06 6-MONTH AVERAGE
PREMIUM/DISCOUNT PREMIUM/DISCOUNT
--------------------------------------------------------------------------------
NPC +2.10% -2.25%
--------------------------------------------------------------------------------
NCL +0.20% -3.03%
--------------------------------------------------------------------------------
NCU -3.94% -4.59%
--------------------------------------------------------------------------------
NAC +1.97% +0.21%
--------------------------------------------------------------------------------
NVX -3.18% -4.72%
--------------------------------------------------------------------------------
NZH -3.11% -5.32%
--------------------------------------------------------------------------------
NKL -2.24% -3.88%
--------------------------------------------------------------------------------
NKX -3.66% -5.01%
--------------------------------------------------------------------------------
11
Nuveen Insured California Premium Income Municipal Fund, Inc.
NPC
Performance
OVERVIEW As of February 28, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
Insured 70%
U.S. Guaranteed 30%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Mar 0.074
Apr 0.074
May 0.074
Jun 0.074
Jul 0.074
Aug 0.074
Sep 0.0705
Oct 0.0705
Nov 0.0705
Dec 0.0705
Jan 0.0705
Feb 0.0705
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
3/01/05 16.41
16.32
16.26
16.24
16.24
16.04
15.77
15.65
15.35
15.16
14.99
14.97
15.01
15
15.01
15.01
15.13
15.23
15.1
15.14
15.1
15.19
15.16
15.3
15.18
15.2
15.08
15.01
15.09
15.1
14.95
14.95
14.99
14.98
14.97
15.07
15.05
15.06
15.08
15.08
15.05
15.12
15.17
15.17
15.17
15.3
15.32
15.43
15.35
15.25
15.43
15.44
15.35
15.49
15.39
15.33
15.35
15.42
15.45
15.59
16
15.78
15.75
15.9
15.63
15.67
15.8
15.94
15.93
15.89
15.94
15.82
15.79
15.84
15.9
15.9
15.73
15.79
15.79
15.7
15.68
15.72
15.62
15.63
15.6
15.66
15.7
15.7
15.69
15.64
15.71
15.72
15.79
15.79
15.79
15.91
15.94
15.96
16.1
16.12
15.86
15.93
16.04
16.04
16.04
16.04
16.39
16.39
16.45
16.25
16.59
16.8
16.5
16.47
16.28
16.1
16.06
16.31
16.19
16.14
15.93
15.86
15.89
15.89
15.96
15.87
15.86
15.88
15.96
15.81
15.9
15.91
16.08
16.14
16.21
16.21
16.35
16.2
16
16.14
16.04
16.04
15.87
15.82
15.76
15.71
15.71
15.65
15.64
15.64
15.6
15.67
15.7
15.61
15.61
15.61
15.53
15.62
15.54
15.55
15.4
15.29
15.45
15.46
15.46
15.3
15.45
15.42
15.15
15.08
14.94
14.99
15
15
15.03
14.89
15.01
14.83
14.97
14.9
14.93
14.93
14.93
14.85
14.98
14.95
15.07
15.09
15.23
15.12
15.12
15.02
15.04
14.95
14.89
14.9
14.78
14.86
14.97
14.87
14.8
14.8
14.52
14.39
14.42
14.43
14.4
14.66
14.52
14.54
14.56
14.74
14.74
14.84
14.95
14.95
15
15.15
15.36
15.44
15.45
15.44
15.41
15.46
15.51
15.75
15.7
15.76
15.75
15.87
15.7
15.47
15.38
15.4
15.29
15.34
15.5
15.73
15.89
15.88
15.88
15.87
15.8
15.8
16.1
16.1
16.25
16.2
16.05
15.68
16.08
15.59
15.72
15.9
2/28/06 16.04
FUND SNAPSHOT
------------------------------------
Common Share Price $16.04
------------------------------------
Common Share
Net Asset Value $15.71
------------------------------------
Premium/(Discount) to NAV 2.10%
------------------------------------
Market Yield 5.27%
------------------------------------
Taxable-Equivalent Yield1 8.05%
------------------------------------
Net Assets Applicable
to Common Shares ($000) $101,333
------------------------------------
Average Effective Maturity
on Securities (Years) 15.57
------------------------------------
Leverage-Adjusted Duration 7.60
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/19/92)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 4.69% 0.49%
------------------------------------
1-Year 4.02% 4.32%
------------------------------------
5-Year 7.88% 6.62%
------------------------------------
10-Year 7.84% 6.27%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
U.S. Guaranteed 30.2%
------------------------------------
Tax Obligation/General 20.2%
------------------------------------
Tax Obligation/Limited 17.1%
------------------------------------
Water and Sewer 17.0%
------------------------------------
Education and Civic
Organizations 7.4%
------------------------------------
Other 8.1%
------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34.5%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2005 of $0.1476 per share.
12
Nuveen Insured California Premium Income Municipal Fund 2, Inc.
NCL
Performance
OVERVIEW As of February 28, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
Insured 78%
U.S. Guaranteed 22%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Mar 0.073
Apr 0.073
May 0.073
Jun 0.069
Jul 0.069
Aug 0.069
Sep 0.066
Oct 0.066
Nov 0.066
Dec 0.066
Jan 0.066
Feb 0.066
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
3/01/05 14.89
14.9
14.96
15
15.05
14.92
14.9
14.79
14.67
14.68
14.72
14.68
14.7
14.63
14.58
14.64
14.65
14.55
14.4
14.33
14.25
14.42
14.45
14.53
14.58
14.56
14.54
14.51
14.61
14.55
14.5
14.53
14.63
14.57
14.55
14.5
14.5
14.55
14.62
14.57
14.6
14.87
14.99
14.99
15
15.08
15.08
15.04
15.02
15.05
15.22
15.29
15.35
15.33
15.34
15.38
15.37
15.29
15.31
15.38
15.38
15.35
15.45
15.5
15.34
15.3
15.3
15.2
15.25
15.21
15.15
15.05
15.01
14.87
14.89
14.76
14.73
14.65
14.6
14.57
14.66
14.76
14.77
14.78
14.83
14.87
14.86
14.86
14.9
14.94
14.97
14.85
14.85
14.96
14.86
14.9
15
14.91
14.78
14.88
14.8
14.8
14.95
14.86
14.95
15.15
15.1
15.1
14.96
15
15
15.08
15
15
15
15.03
14.85
14.85
14.85
14.84
14.87
14.89
14.95
14.9
14.87
14.96
14.96
14.94
14.94
15.07
15.05
15.13
15.21
15.32
15.25
15.29
15.2
15.2
15.18
15.08
15.15
15.18
15.08
14.91
14.96
14.99
14.98
15
14.89
15.09
15.03
15.15
15.1
15.11
15.17
15.15
14.97
15.05
14.9
14.82
14.78
14.65
14.65
14.62
14.7
14.67
14.8
14.79
14.61
14.8
14.55
14.49
14.5
14.46
14.4
14.3
14.45
14.45
14.43
14.4
14.19
14
13.99
13.86
13.9
13.87
13.86
13.82
13.84
13.78
13.78
13.85
13.78
13.74
13.85
13.98
13.89
13.9
13.92
13.87
13.8
13.76
13.73
13.69
13.62
13.67
13.68
13.72
13.76
13.78
13.8
13.89
13.92
13.99
14.2
14.2
14.48
14.39
14.44
14.44
14.46
14.44
14.4
14.5
14.45
14.38
14.4
14.54
14.54
14.53
14.54
14.47
14.54
14.59
14.7
14.69
14.71
14.77
14.81
14.85
14.8
14.86
14.9
14.89
14.87
14.81
15
15
15.15
15.01
14.98
14.98
14.96
14.95
2/28/06 15.09
FUND SNAPSHOT
------------------------------------
Common Share Price $15.09
------------------------------------
Common Share
Net Asset Value $15.06
------------------------------------
Premium/(Discount) to NAV 0.20%
------------------------------------
Market Yield 5.25%
------------------------------------
Taxable-Equivalent Yield1 8.02%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $191,484
------------------------------------
Average Effective Maturity
on Securities (Years) 15.87
------------------------------------
Leverage-Adjusted Duration 7.36
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/18/93)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 3.01% 0.87%
------------------------------------
1-Year 6.40% 4.75%
------------------------------------
5-Year 7.12% 6.67%
------------------------------------
10-Year 7.79% 6.69%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 30.2%
------------------------------------
U.S. Guaranteed 21.8%
------------------------------------
Water and Sewer 15.4%
------------------------------------
Tax Obligation/General 10.0%
------------------------------------
Education and Civic
Organizations 8.4%
------------------------------------
Utilities 8.0%
------------------------------------
Other 6.2%
------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34.5%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
13
Nuveen California Premium Income Municipal Fund
NCU
Performance
OVERVIEW As of February 28, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 64%
AA 6%
A 13%
BBB 12%
BB or Lower 4%
N/R 1%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Mar 0.07
Apr 0.07
May 0.07
Jun 0.07
Jul 0.07
Aug 0.07
Sep 0.067
Oct 0.067
Nov 0.067
Dec 0.067
Jan 0.067
Feb 0.067
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
3/01/05 14.07
14.07
14.1
14.16
14.15
14.06
13.84
13.74
13.64
13.64
13.64
13.64
13.52
13.64
13.54
13.26
13.17
13.06
13.06
13.03
13.07
13.1
13.02
13.09
13.08
13.09
13.03
13.21
13.22
13.29
13.5
13.63
13.9
13.81
13.82
13.8
13.76
13.67
13.85
13.85
13.86
13.97
13.97
13.97
14
13.99
13.98
13.99
13.97
13.83
13.92
13.9
13.77
13.89
13.97
13.89
14
13.92
13.91
13.93
13.94
13.99
14.13
14.06
14.1
13.99
14.22
14.33
14.74
14.7
14.49
14.47
14.4
14.3
14.18
14
14.24
14.2
14.12
14.11
14.12
14.12
14.16
14.03
14.1
14.14
14.13
14.15
14.23
14.32
14.31
14.25
14.3
14.2
14.13
14.25
14.13
14.1
14.1
14.07
14.14
14.15
14.2
14.15
14.14
14.34
14.26
14.26
14.26
14.39
14.58
14.37
14.23
14.03
14.18
14.21
14.08
14.08
14.14
14.2
14.14
14.21
14.26
14.34
14.5
14.37
14.35
14.24
14.32
14.45
14.37
14.43
14.43
14.48
14.5
14.44
14.48
14.5
14.35
14.3
14.23
14.1
14.06
14.03
14.09
14.19
13.89
13.91
13.79
13.95
13.9
13.87
13.98
13.95
13.96
13.95
13.95
14
13.9
13.92
13.88
13.9
13.88
13.92
13.9
13.92
13.96
14.05
14.09
14
14.03
14
14.02
14.07
14.07
13.95
13.92
13.94
13.82
13.69
13.69
13.7
13.55
13.8
13.8
13.76
13.76
13.7
13.49
13.45
13.4
13.5
13.55
13.5
13.57
13.9
13.78
13.83
13.81
13.74
13.77
13.77
13.9
14.11
14
13.92
13.87
13.73
13.66
13.67
13.64
13.51
13.49
13.54
13.62
13.62
13.65
13.75
13.88
14
14
14.02
14.2
14.12
14.1
13.96
14
14.02
14.13
14.12
14.15
14.15
14.3
14.2
14.2
14.23
14.5
14.23
14.24
14.5
14.45
14.6
14.5
14.44
14.3
14.28
14.26
14.25
14.26
14
14.03
14.02
14.18
14.12
2/28/06 14.15
FUND SNAPSHOT
------------------------------------
Common Share Price $14.15
------------------------------------
Common Share
Net Asset Value $14.73
------------------------------------
Premium/(Discount) to NAV -3.94%
------------------------------------
Market Yield 5.68%
------------------------------------
Taxable-Equivalent Yield1 8.67%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $85,027
------------------------------------
Average Effective Maturity
on Securities (Years) 16.04
------------------------------------
Leverage-Adjusted Duration 8.25
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 6/18/93)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 1.43% 0.81%
------------------------------------
1-Year 5.74% 5.23%
------------------------------------
5-Year 6.56% 7.62%
------------------------------------
10-Year 7.56% 7.10%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 32.1%
------------------------------------
Tax Obligation/General 21.4%
------------------------------------
Water and Sewer 11.4%
------------------------------------
U.S. Guaranteed 11.2%
------------------------------------
Health Care 8.3%
------------------------------------
Utilities 4.4%
------------------------------------
Consumer Staples 4.3%
------------------------------------
Other 6.9%
------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34.5%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
2 The Fund also paid shareholders a capital gains distribution in December
2005 of $0.0122 per share.
14
Nuveen California Dividend Advantage Municipal Fund
NAC
Performance
OVERVIEW As of February 28, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 66%
AA 4%
A 13%
BBB 10%
N/R 7%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Mar 0.082
Apr 0.082
May 0.082
Jun 0.082
Jul 0.082
Aug 0.082
Sep 0.0785
Oct 0.0785
Nov 0.0785
Dec 0.0785
Jan 0.0785
Feb 0.0785
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
3/01/05 14.98
14.97
14.94
15.01
15
14.95
14.76
14.78
14.68
14.61
14.62
14.55
14.59
14.58
14.61
14.59
14.33
14.4
14.29
14.4
14.42
14.51
14.6
14.6
14.68
14.7
14.71
14.66
14.72
14.79
14.78
14.73
14.8
14.83
14.88
14.88
14.89
14.86
14.89
14.85
14.82
14.86
14.93
14.93
14.96
15.01
15
15.02
15
15.11
15.27
15.28
15.22
15.29
15.37
15.35
15.45
15.4
15.35
15.39
15.3
15.25
15.31
15.25
15.39
15.53
15.51
15.59
15.6
15.58
15.55
15.55
15.5
15.38
15.34
15.43
15.64
15.67
15.53
15.53
15.5
15.5
15.59
15.51
15.54
15.61
15.5
15.69
15.78
15.7
15.81
15.82
15.9
15.9
15.82
15.81
15.85
15.8
15.88
15.77
15.8
15.9
15.89
15.95
15.99
16.08
16.06
16.06
15.93
16.08
16.15
16.12
15.9
15.95
15.96
15.94
15.9
16
16.13
16.12
16.15
16.15
16.1
16.02
16.04
15.98
16.12
16.05
16.02
16.08
16.07
16.09
16.14
16.12
16.16
16.11
16.2
16.15
16.06
16.04
15.89
15.85
15.83
15.77
15.89
15.81
15.65
15.63
15.59
15.65
15.61
15.67
15.71
15.72
15.67
15.64
15.56
15.54
15.59
15.28
15.03
14.99
15
14.97
14.95
14.9
15
15.08
15.06
14.98
14.9
14.97
15.03
15
14.99
15.08
14.95
15.04
15
15.04
14.91
14.92
14.89
14.89
14.94
14.94
14.91
14.99
15.06
15.2
15.3
15.35
15.26
15.35
15.63
15.64
15.55
15.6
15.6
15.73
15.87
15.8
15.8
15.94
15.85
15.87
16.05
15.86
15.89
15.9
15.96
15.96
15.96
16.03
16.14
16.14
16.29
16.35
16.27
16.3
16.27
16.2
16.18
16.1
16.01
15.97
15.97
16.1
16.1
16.15
16.16
16.16
16.15
16.24
16.21
16.21
16.32
16.32
16.34
16.31
16.15
16.15
16.05
16.05
15.89
15.9
16.04
15.98
15.93
16.03
15.91
15.9
15.9
15.98
2/28/06 16.01
FUND SNAPSHOT
------------------------------------
Common Share Price $16.01
------------------------------------
Common Share
Net Asset Value $15.70
------------------------------------
Premium/(Discount) to NAV 1.97%
------------------------------------
Market Yield 5.88%
------------------------------------
Taxable-Equivalent Yield1 8.98%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $367,832
------------------------------------
Average Effective Maturity
on Securities (Years) 16.36
------------------------------------
Leverage-Adjusted Duration 7.02
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 5/26/99)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 2.85% 1.46%
------------------------------------
1-Year 13.67% 5.98%
------------------------------------
5-Year 8.97% 8.14%
------------------------------------
Since
Inception 7.50% 7.75%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 24.7%
------------------------------------
U.S. Guaranteed 17.3%
------------------------------------
Tax Obligation/General 14.6%
------------------------------------
Transportation 12.5%
------------------------------------
Education and Civic
Organizations 8.1%
------------------------------------
Housing/Multifamily 5.5%
------------------------------------
Health Care 4.9%
------------------------------------
Water and Sewer 4.5%
------------------------------------
Other 7.9%
------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34.5%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
2 The Fund also paid shareholders a capital gains distribution in December
2005 of $0.0334 per share.
15
Nuveen California Dividend Advantage Municipal Fund 2
NVX
Performance
OVERVIEW As of February 28, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 72%
AA 1%
A 11%
BBB 10%
N/R 6%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Mar 0.076
Apr 0.076
May 0.076
Jun 0.076
Jul 0.076
Aug 0.076
Sep 0.0725
Oct 0.0725
Nov 0.0725
Dec 0.0725
Jan 0.0725
Feb 0.0725
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
3/01/05 14.09
14.04
14.11
14.18
14.15
14.16
14.16
14.09
14.06
13.95
14
14.01
13.92
13.9
13.83
13.88
13.64
13.73
13.56
13.56
13.77
13.77
13.71
13.71
13.68
13.76
13.76
13.69
13.72
13.81
13.79
13.68
13.78
13.88
13.98
13.86
13.76
13.84
13.86
13.81
13.86
13.97
14.05
14.05
14
14
14.05
14.16
14.1
14.08
14.07
14.18
14.17
14.24
14.22
14.24
14.24
14.26
14.29
14.24
14.25
14.26
14.32
14.37
14.37
14.42
14.55
14.59
14.69
14.7
14.66
14.7
14.68
14.5
14.47
14.39
14.4
14.43
14.38
14.38
14.37
14.47
14.59
14.59
14.56
14.63
14.7
14.93
14.9
14.97
14.9
14.89
14.83
14.93
14.84
14.73
14.82
14.79
14.82
14.77
14.82
14.84
14.88
14.83
14.93
15
14.97
14.97
14.93
14.96
14.9
15.09
14.79
14.8
15.02
15.14
15.05
15
14.98
15.12
15.16
15.09
15.05
15.04
14.96
14.91
15.05
14.97
15.13
14.98
15.19
15.16
15.25
15.17
15.24
15.1
15.12
15.14
15.05
14.95
14.87
14.85
14.94
14.9
14.98
14.95
14.7
14.6
14.43
14.49
14.68
14.57
14.6
14.65
14.64
14.52
14.4
14.42
14.23
14.09
13.97
13.75
13.86
13.86
13.91
13.97
13.97
14.11
13.98
13.9
14.16
14.12
14.14
14.14
14.24
14.17
14.12
14.19
14.19
14.2
14.11
13.95
13.9
14.03
14
14.05
14.06
14.12
14.04
14.16
14.19
14.2
14.25
14.2
14.21
14.25
14.2
14.25
14.35
14.34
14.5
14.5
14.44
14.44
14.6
14.47
14.46
14.54
14.57
14.6
14.59
14.57
14.6
14.67
14.52
14.52
14.75
14.82
14.85
15
15.24
15.32
15.05
15.21
15.35
15.14
15.27
15.14
15.2
15.17
15.35
15
15.06
15.2
15.07
15.11
15.23
15.23
15.1
15.1
14.84
14.99
15.04
14.92
14.8
14.75
14.8
14.8
14.84
14.9
14.8
14.82
14.9
14.79
2/28/06 14.92
FUND SNAPSHOT
------------------------------------
Common Share Price $14.92
------------------------------------
Common Share
Net Asset Value $15.41
------------------------------------
Premium/(Discount) to NAV -3.18%
------------------------------------
Market Yield 5.83%
------------------------------------
Taxable-Equivalent Yield1 8.90%
------------------------------------
Net Assets Applicable
to Common Shares ($000) $227,948
------------------------------------
Average Effective Maturity
on Securities (Years) 14.83
------------------------------------
Leverage-Adjusted Duration 7.62
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/27/01)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 1.17% 1.43%
------------------------------------
1-Year 12.54% 6.65%
------------------------------------
Since
Inception 6.27% 7.66%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 19.5%
------------------------------------
U.S. Guaranteed 17.0%
------------------------------------
Tax Obligation/General 16.2%
------------------------------------
Education and Civic
Organizations 10.1%
------------------------------------
Water and Sewer 9.2%
------------------------------------
Housing/Multifamily 7.8%
------------------------------------
Health Care 6.2%
------------------------------------
Transportation 6.1%
------------------------------------
Other 7.9%
------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34.5%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
16
Nuveen California Dividend Advantage Municipal Fund 3
NZH
Performance
OVERVIEW As of February 28, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 68%
AA 2%
A 14%
BBB 9%
N/R 7%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Mar 0.072
Apr 0.072
May 0.072
Jun 0.072
Jul 0.072
Aug 0.072
Sep 0.072
Oct 0.072
Nov 0.072
Dec 0.072
Jan 0.072
Feb 0.072
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
3/01/05 13.65
13.65
13.65
13.72
13.81
13.76
13.59
13.53
13.46
13.41
13.37
13.31
13.41
13.43
13.45
13.44
13.16
13.2
13.07
13.17
13.23
13.31
13.33
13.37
13.4
13.44
13.41
13.37
13.41
13.38
13.4
13.32
13.42
13.46
13.45
13.47
13.43
13.43
13.43
13.34
13.44
13.43
13.54
13.54
13.62
13.62
13.76
13.68
13.56
13.59
13.74
13.77
13.7
13.8
13.82
13.81
13.8
13.86
13.86
13.92
13.95
13.92
13.9
13.91
13.96
13.99
14
14.02
13.95
14.08
14.01
14.02
14.05
13.95
13.91
13.88
13.96
13.98
13.99
13.99
13.9
13.9
13.96
14.05
14.02
14.01
14.03
14.07
14.08
14.03
14.06
14.17
14.13
14.16
14.12
14.04
13.96
13.93
14.01
14.03
13.95
14.08
14.12
14.01
14.16
14.14
14.15
14.15
14.26
14.39
14.41
14.47
14.38
14.42
14.4
14.5
14.34
14.32
14.38
14.4
14.4
14.35
14.34
14.37
14.33
14.38
14.36
14.35
14.41
14.44
14.49
14.5
14.64
14.65
14.72
14.73
14.75
14.71
14.67
14.57
14.46
14.41
14.53
14.53
14.45
14.19
14.08
14.1
13.86
14
14.04
14.01
14
14.02
13.89
13.86
13.9
14
13.95
13.83
13.66
13.8
13.69
13.7
13.73
13.64
13.73
13.62
13.58
13.57
13.61
13.69
13.74
13.8
13.84
13.9
13.78
13.99
13.8
13.69
13.66
13.57
13.65
13.76
13.67
13.83
13.71
13.64
13.66
13.62
13.85
13.88
14.03
13.89
13.88
13.84
13.83
14
14.05
14.01
13.95
14.04
13.95
14.05
14.02
13.93
13.9
14.06
14.08
14.15
14.13
14.18
14.2
14.39
14.45
14.45
14.48
14.49
14.5
14.66
14.64
14.71
14.64
14.57
14.64
14.58
14.52
14.54
14.58
14.53
14.59
14.65
14.85
14.77
14.67
14.54
14.6
14.65
14.74
14.65
14.51
14.5
14.59
14.57
14.47
14.3
14.42
14.56
14.56
14.55
14.49
14.46
14.5
14.5
2/28/06 14.64
FUND SNAPSHOT
------------------------------------
Common Share Price $14.64
------------------------------------
Common Share
Net Asset Value $15.11
------------------------------------
Premium/(Discount) to NAV -3.11%
------------------------------------
Market Yield 5.90%
------------------------------------
Taxable-Equivalent Yield1 9.01%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $364,328
------------------------------------
Average Effective Maturity
on Securities (Years) 16.53
------------------------------------
Leverage-Adjusted Duration 8.23
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 9/25/01)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 4.14% 1.58%
------------------------------------
1-Year 14.01% 6.96%
------------------------------------
Since
Inception 5.81% 7.28%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 27.6%
------------------------------------
Tax Obligation/General 19.8%
------------------------------------
Water and Sewer 8.8%
------------------------------------
Health Care 8.6%
------------------------------------
U.S. Guaranteed 7.4%
------------------------------------
Transportation 6.6%
------------------------------------
Housing/Multifamily 6.6%
------------------------------------
Utilities 6.2%
------------------------------------
Education and Civic
Organizations 5.1%
------------------------------------
Other 3.3%
------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34.5%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
17
Nuveen Insured California Dividend Advantage Municipal Fund
NKL
Performance
OVERVIEW As of February 28, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
Insured 76%
U.S. Guaranteed 8%
AAA (uninsured) 1%
AA (uninsured) 3%
A (uninsured) 6%
BBB (uninsured) 6%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Mar 0.076
Apr 0.076
May 0.076
Jun 0.072
Jul 0.072
Aug 0.072
Sep 0.072
Oct 0.072
Nov 0.072
Dec 0.072
Jan 0.072
Feb 0.072
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
3/01/05 14.58
14.55
14.61
14.62
14.62
14.75
14.75
14.62
14.66
14.59
14.58
14.7
14.47
14.64
14.65
14.5
14.46
14.45
14.38
14.57
14.45
14.65
14.64
14.72
14.69
14.75
14.83
14.62
14.72
14.67
14.46
14.53
14.64
14.68
14.54
14.44
14.5
14.45
14.41
14.39
14.4
14.43
14.59
14.59
14.58
14.61
14.74
14.71
14.73
14.69
14.7
14.72
14.58
14.73
14.79
14.77
14.85
14.82
14.88
14.89
15.25
14.95
15
15.2
15.14
15.23
15.2
15.13
15.06
14.91
14.96
14.88
14.89
14.91
14.82
14.9
14.8
14.66
14.58
14.66
14.67
14.8
14.77
14.84
14.76
14.79
14.88
14.88
14.89
14.94
14.94
15.04
15.06
15.05
15
15.13
15.04
14.89
15
14.9
14.8
14.88
14.88
14.93
15
15.08
15.12
15.12
15.15
15.18
15.12
15.11
15.23
15.2
15.17
15
15.05
15.02
15.01
14.93
14.89
14.89
14.99
14.96
14.92
15
15.01
14.98
15.07
15.13
15
15.01
15.07
15.1
15.16
15.22
15.25
15.33
15.31
15.31
15.26
15.3
15.23
15.22
15.04
14.89
14.97
14.92
14.82
15
14.99
14.97
14.86
14.99
15.03
15.03
14.96
15.01
14.96
14.63
14.5
14.25
14.32
14.3
14.39
14.36
14.47
14.71
14.65
14.6
14.67
14.6
14.59
14.56
14.52
14.54
14.42
14.45
14.42
14.45
14.35
14.35
14.25
14.24
14.12
14.1
14.12
14.15
14.2
14.2
14.25
14.38
14.29
14.29
14.35
14.41
14.41
14.57
14.53
14.6
14.71
14.79
14.66
14.89
14.88
14.95
14.91
14.99
15.01
14.89
14.88
14.88
14.98
15.02
15.1
15.1
15.08
15.14
15.01
15.21
15.25
15.23
15.22
15.18
15.37
15.23
15.23
15.24
15.2
15.2
15.09
15.15
15.07
15.14
15.07
15.12
15.3
15.16
15.3
15.22
15.21
15.17
15.13
15.24
15.18
15.19
15.16
15.16
15.14
15.16
15.06
15.35
15.31
15.36
2/28/06 15.25
FUND SNAPSHOT
------------------------------------
Common Share Price $15.25
------------------------------------
Common Share
Net Asset Value $15.60
------------------------------------
Premium/(Discount) to NAV -2.24%
------------------------------------
Market Yield 5.67%
------------------------------------
Taxable-Equivalent Yield1 8.66%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $238,048
------------------------------------
Average Effective Maturity
on Securities (Years) 18.77
------------------------------------
Leverage-Adjusted Duration 7.96
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/25/02)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 4.65% 1.46%
------------------------------------
1-Year 10.66% 5.98%
------------------------------------
Since
Inception 7.01% 8.61%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 28.6%
------------------------------------
Tax Obligation/General 21.6%
------------------------------------
Utilities 11.8%
------------------------------------
Water and Sewer 11.2%
------------------------------------
U.S. Guaranteed 7.7%
------------------------------------
Education and Civic
Organizations 5.8%
------------------------------------
Transportation 3.9%
------------------------------------
Other 9.4%
------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34.5%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
18
Nuveen Insured California Tax-Free Advantage Municipal Fund
NKX
Performance
OVERVIEW As of February 28, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
Insured 83%
U.S. Guaranteed 1%
A (uninsured) 10%
BBB (uninsured) 6%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Mar 0.0695
Apr 0.0695
May 0.0695
Jun 0.066
Jul 0.066
Aug 0.066
Sep 0.063
Oct 0.063
Nov 0.063
Dec 0.063
Jan 0.063
Feb 0.063
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
3/01/05 14.75
14.66
14.7
14.8
14.8
14.75
14.65
14.65
14.7
14.8
14.56
14.4
14.4
14.24
14.24
14.04
14.24
13.96
13.96
14
13.9
13.96
13.93
13.8
13.83
13.92
13.92
14
14.04
13.93
13.9
13.95
13.88
13.89
13.93
13.97
13.9
13.95
13.91
13.91
13.86
14.02
13.88
13.88
13.91
14.26
14.32
14.25
14.23
14.24
14.11
14.11
14.1
14.28
14.28
14.34
14.3
14.16
14.28
14.34
14.46
14.48
14.54
14.62
15.08
14.93
14.78
14.69
14.53
14.53
14.45
14.4
14.39
14.38
14.38
14.4
14.28
14.26
14.32
14.24
14.18
14.21
14.17
14.23
14.26
14.18
14.26
14.25
14.26
14.28
14.18
14.35
14.3
14.42
14.25
14.33
14.25
14.22
14.5
14.5
14.55
14.32
14.28
14.27
14.4
14.36
14.47
14.47
14.44
14.45
14.33
14.5
14.42
14.53
14.69
14.52
14.21
14.2
14.23
14.22
14.22
14.28
14.34
14.36
14.35
14.46
14.68
14.54
14.62
14.62
14.38
14.44
14.59
14.5
14.64
14.66
14.61
14.67
14.7
14.57
14.42
14.41
14.41
14.46
14.46
14.56
14.59
14.7
14.51
14.53
14.21
14.35
14.5
14.55
14.6
14.6
14.26
14.28
14.45
14.31
14.3
14.31
14.31
14.3
14.25
14.16
14.2
13.92
13.87
13.83
13.84
13.89
14.08
14
13.93
13.77
13.95
13.82
13.93
13.93
13.63
13.89
13.85
13.6
13.58
13.55
13.49
13.4
13.54
13.54
13.6
13.59
13.46
13.67
13.62
13.55
13.49
13.45
13.44
13.45
13.45
13.74
13.45
13.42
13.37
13.43
13.36
13.44
13.51
13.48
13.58
13.95
13.67
13.52
13.69
13.69
13.76
13.93
14.07
14.2
14.25
14.27
14.3
14.3
14.24
14.31
14.43
14.45
14.35
14.6
14.48
14.52
14.41
14.41
14.48
14.34
14.44
14.42
14.74
14.66
14.6
14.41
14.41
14.44
14.39
14.35
14.3
14.25
14.04
14.2
14.22
14.16
14.17
14.16
2/28/06 14.46
FUND SNAPSHOT
------------------------------------
Common Share Price $14.46
------------------------------------
Common Share
Net Asset Value $15.01
------------------------------------
Premium/(Discount) to NAV -3.66%
------------------------------------
Market Yield 5.23%
------------------------------------
Taxable-Equivalent Yield1 7.98%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $88,293
------------------------------------
Average Effective Maturity
on Securities (Years) 19.38
------------------------------------
Leverage-Adjusted Duration 8.42
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/21/02)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 3.29% 1.49%
------------------------------------
1-Year 3.64% 6.02%
------------------------------------
Since
Inception 4.81% 7.38%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Tax Obligation/General 32.5%
------------------------------------
Tax Obligation/Limited 28.7%
------------------------------------
Health Care 10.2%
------------------------------------
Transportation 9.4%
------------------------------------
Water and Sewer 7.6%
------------------------------------
Other 11.6%
------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34.5%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
19
Shareholder
MEETING REPORT
The shareholder meeting was held at the offices of Nuveen's Investments on
November 15, 2005.
NPC NCL NCU
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS:
Common and Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting shares voting shares voting
together together together together together together
as a class as a class as a class as a class as a class as a class
====================================================================================================================================
Robert P. Bremner
For 5,823,628 - 11,685,609 - 5,131,733 -
Withhold 41,890 - 28,707 - 26,905 -
------------------------------------------------------------------------------------------------------------------------------------
Total 5,865,518 - 11,714,316 - 5,158,638 -
====================================================================================================================================
Lawrence H. Brown
For 5,826,101 - 11,684,376 - 5,132,948 -
Withhold 39,417 - 29,940 - 25,690 -
------------------------------------------------------------------------------------------------------------------------------------
Total 5,865,518 - 11,714,316 - 5,158,638 -
====================================================================================================================================
Jack B. Evans
For 5,823,084 - 11,686,876 - 5,132,239 -
Withhold 42,434 - 27,440 - 26,399 -
------------------------------------------------------------------------------------------------------------------------------------
Total 5,865,518 - 11,714,316 - 5,158,638 -
====================================================================================================================================
William C. Hunter
For 5,825,201 - 11,686,209 - 5,131,535 -
Withhold 40,317 - 28,107 - 27,103 -
------------------------------------------------------------------------------------------------------------------------------------
Total 5,865,518 - 11,714,316 - 5,158,638 -
====================================================================================================================================
David J. Kundert
For 5,825,384 - 11,685,645 - 5,132,748 -
Withhold 40,134 - 28,671 - 25,890 -
------------------------------------------------------------------------------------------------------------------------------------
Total 5,865,518 - 11,714,316 - 5,158,638 -
====================================================================================================================================
William J. Schneider
For - 1,450 - 3,137 - 1,473
Withhold - 4 - 2 - -
------------------------------------------------------------------------------------------------------------------------------------
Total - 1,454 - 3,139 - 1,473
====================================================================================================================================
Timothy R. Schwertfeger
For - 1,450 - 3,137 - 1,473
Withhold - 4 - 2 - -
------------------------------------------------------------------------------------------------------------------------------------
Total - 1,454 - 3,139 - 1,473
====================================================================================================================================
Judith M. Stockdale
For 5,826,601 - 11,686,209 - 5,131,941 -
Withhold 38,917 - 28,107 - 26,697 -
------------------------------------------------------------------------------------------------------------------------------------
Total 5,865,518 - 11,714,316 - 5,158,638 -
====================================================================================================================================
Eugene S. Sunshine
For 5,825,384 - 11,686,209 - 5,132,054 -
Withhold 40,134 - 28,107 - 26,584 -
------------------------------------------------------------------------------------------------------------------------------------
Total 5,865,518 - 11,714,316 - 5,158,638 -
====================================================================================================================================
20
Shareholder
MEETING REPORT (continued)
NAC NVX NZH
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS:
Common and Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting shares voting shares voting
together together together together together together
as a class as a class as a class as a class as a class as a class
====================================================================================================================================
Robert P. Bremner
For 22,493,945 - 14,390,429 - 22,429,140 -
Withhold 96,215 - 74,525 - 88,611 -
------------------------------------------------------------------------------------------------------------------------------------
Total 22,590,160 - 14,464,954 - 22,517,751 -
====================================================================================================================================
Lawrence H. Brown
For 22,491,345 - 14,388,761 - 22,428,740 -
Withhold 98,815 - 76,193 - 89,011 -
------------------------------------------------------------------------------------------------------------------------------------
Total 22,590,160 - 14,464,954 - 22,517,751 -
====================================================================================================================================
Jack B. Evans
For 22,479,039 - 14,392,429 - 22,429,140 -
Withhold 111,121 - 72,525 - 88,611 -
------------------------------------------------------------------------------------------------------------------------------------
Total 22,590,160 - 14,464,954 - 22,517,751 -
====================================================================================================================================
William C. Hunter
For 22,477,270 - 14,393,111 - 22,429,140 -
Withhold 112,890 - 71,843 - 88,611 -
------------------------------------------------------------------------------------------------------------------------------------
Total 22,590,160 - 14,464,954 - 22,517,751 -
====================================================================================================================================
David J. Kundert
For 22,498,345 - 14,393,111 - 22,429,140 -
Withhold 91,815 - 71,843 - 88,611 -
------------------------------------------------------------------------------------------------------------------------------------
Total 22,590,160 - 14,464,954 - 22,517,751 -
====================================================================================================================================
William J. Schneider
For - 5,962 - 3,603 - 6,229
Withhold - 4 - 2 - 1
------------------------------------------------------------------------------------------------------------------------------------
Total - 5,966 - 3,605 - 6,230
====================================================================================================================================
Timothy R. Schwertfeger
For - 5,962 - 3,603 - 6,229
Withhold - 4 - 2 - 1
------------------------------------------------------------------------------------------------------------------------------------
Total - 5,966 - 3,605 - 6,230
====================================================================================================================================
Judith M. Stockdale
For 22,480,995 - 14,388,301 - 22,428,070 -
Withhold 109,165 - 76,653 - 89,681 -
------------------------------------------------------------------------------------------------------------------------------------
Total 22,590,160 - 14,464,954 - 22,517,751 -
====================================================================================================================================
Eugene S. Sunshine
For 22,495,039 - 14,393,111 - 22,429,140 -
Withhold 95,121 - 71,843 - 88,611 -
------------------------------------------------------------------------------------------------------------------------------------
Total 22,590,160 - 14,464,954 - 22,517,751 -
====================================================================================================================================
21
Shareholder
MEETING REPORT (continued)
NKL NKX
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS:
Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting
together together together together
as a class as a class as a class as a class
====================================================================================================================================
Robert P. Bremner
For 14,700,922 - 5,606,208 -
Withhold 87,941 - 51,265 -
------------------------------------------------------------------------------------------------------------------------------------
Total 14,788,863 - 5,657,473 -
====================================================================================================================================
Lawrence H. Brown
For 14,700,922 - 5,605,208 -
Withhold 87,941 - 52,265 -
------------------------------------------------------------------------------------------------------------------------------------
Total 14,788,863 - 5,657,473 -
====================================================================================================================================
Jack B. Evans
For 14,698,922 - 5,606,218 -
Withhold 89,941 - 51,255 -
------------------------------------------------------------------------------------------------------------------------------------
Total 14,788,863 - 5,657,473 -
====================================================================================================================================
William C. Hunter
For 14,700,922 - 5,606,208 -
Withhold 87,941 - 51,265 -
------------------------------------------------------------------------------------------------------------------------------------
Total 14,788,863 - 5,657,473 -
====================================================================================================================================
David J. Kundert
For 14,700,922 - 5,606,208 -
Withhold 87,941 - 51,265 -
------------------------------------------------------------------------------------------------------------------------------------
Total 14,788,863 - 5,657,473 -
====================================================================================================================================
William J. Schneider
For - 3,718 - 1,605
Withhold - 16 - 10
------------------------------------------------------------------------------------------------------------------------------------
Total - 3,734 - 1,615
====================================================================================================================================
Timothy R. Schwertfeger
For - 3,718 - 1,605
Withhold - 16 - 10
------------------------------------------------------------------------------------------------------------------------------------
Total - 3,734 - 1,615
====================================================================================================================================
Judith M. Stockdale
For 14,697,022 - 5,601,452 -
Withhold 91,841 - 56,021 -
------------------------------------------------------------------------------------------------------------------------------------
Total 14,788,863 - 5,657,473 -
====================================================================================================================================
Eugene S. Sunshine
For 14,698,322 - 5,602,652 -
Withhold 90,541 - 54,821 -
------------------------------------------------------------------------------------------------------------------------------------
Total 14,788,863 - 5,657,473 -
====================================================================================================================================
22
Nuveen Insured California Premium Income Municipal Fund, Inc. (NPC)
Portfolio of
INVESTMENTS February 28, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 10.5% (7.4% OF TOTAL INVESTMENTS)
$ 2,000 California Educational Facilities Authority, Revenue Bonds, 9/06 at 102.00 AAA $ 2,063,000
Santa Clara University, Series 1996, 5.750%, 9/01/26 -
MBIA Insured
2,125 California Educational Facilities Authority, Student Loan Revenue 3/08 at 102.00 Aaa 2,216,311
Bonds, Cal Loan Program, Series 2001A, 5.400%, 3/01/21 -
MBIA Insured (Alternative Minimum Tax)
2,500 California State University, Systemwide Revenue Bonds, 5/14 at 100.00 AAA 2,688,075
Series 2004A, 5.000%, 11/01/18 - FSA Insured
1,500 California State University, Systemwide Revenue Bonds, 5/15 at 100.00 AAA 1,598,145
Series 2005A, 5.000%, 11/01/25 - AMBAC Insured
2,000 University of California, Revenue Bonds, Multi-Purpose Projects, 9/10 at 101.00 AAA 2,088,080
Series 2002O, 5.125%, 9/01/31 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
10,125 Total Education and Civic Organizations 10,653,611
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 4.7% (3.3% OF TOTAL INVESTMENTS)
3,000 California Health Facilities Financing Authority, Insured 8/08 at 101.00 AAA 3,146,100
Revenue Bonds, Sutter Health, Series 1998A, 5.375%, 8/15/30 -
MBIA Insured
1,500 California Statewide Community Development Authority, 8/09 at 101.00 AAA 1,606,485
Certificates of Participation, Sutter Health Obligated Group,
Series 1999, 5.500%, 8/15/19 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
4,500 Total Health Care 4,752,585
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.1% (0.1% OF TOTAL INVESTMENTS)
150 California Housing Finance Agency, Single Family Mortgage 2/07 at 102.00 AAA 154,661
Bonds II, Series 1997A-1, 6.000%, 8/01/20 - MBIA Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 28.8% (20.2% OF TOTAL INVESTMENTS)
Bonita Unified School District, San Diego County, California,
General Obligation Bonds, Series 2004A:
1,890 5.250%, 8/01/23 - MBIA Insured 8/14 at 100.00 AAA 2,076,940
1,250 5.250%, 8/01/25 - MBIA Insured 8/14 at 100.00 AAA 1,374,100
2,000 California, General Obligation Veterans Welfare Bonds, 6/07 at 101.00 AAA 2,063,080
Series 2001BZ, 5.375%, 12/01/24 - MBIA Insured
(Alternative Minimum Tax)
El Segundo Unified School District, Los Angeles County,
California, General Obligation Bonds, Series 2004:
2,580 5.250%, 9/01/21 - FGIC Insured 9/14 at 100.00 AAA 2,838,568
1,775 5.250%, 9/01/22 - FGIC Insured 9/14 at 100.00 AAA 1,952,891
1,225 Fresno Unified School District, Fresno County, California, 2/13 at 103.00 AAA 1,463,777
General Obligation Refunding Bonds, Series 1998A,
6.550%, 8/01/20 - MBIA Insured
1,180 Jurupa Unified School District, Riverside County, California, 8/13 at 100.00 AAA 1,256,452
General Obligation Bonds, Series 2004, 5.000%, 8/01/21 -
FGIC Insured
1,130 Los Angeles Community College District, Los Angeles County, 8/15 at 100.00 AAA 1,207,439
California, General Obligation Bonds, Series 2005A,
5.000%, 8/01/24 - FSA Insured
Oakland Unified School District, Alameda County, California,
General Obligation Bonds, Series 2005:
205 5.000%, 8/01/25 - MBIA Insured 8/15 at 100.00 AAA 218,061
215 5.000%, 8/01/26 - MBIA Insured 8/15 at 100.00 AAA 228,526
23
Nuveen Insured California Premium Income Municipal Fund, Inc. (NPC) (continued)
Portfolio of INVESTMENTS February 28, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 3,000 Pomona Unified School District, Los Angeles County, California, 8/11 at 103.00 AAA $ 3,508,290
General Obligation Refunding Bonds, Series 1997A,
6.500%, 8/01/19 - MBIA Insured
San Diego Unified School District, San Diego County, California,
General Obligation Bonds, Election of 1998, Series 2001C:
1,335 5.000%, 7/01/21 - FSA Insured 7/11 at 102.00 AAA 1,444,710
3,500 5.000%, 7/01/22 - FSA Insured 7/11 at 102.00 AAA 3,787,630
4,895 5.000%, 7/01/23 - FSA Insured 7/11 at 102.00 AAA 5,297,271
San Jose-Evergreen Community College District, Santa Clara
County, California, General Obligation Bonds, Series 2005A:
165 5.000%, 9/01/25 - MBIA Insured 9/15 at 100.00 AAA 176,126
240 5.000%, 9/01/27 - MBIA Insured 9/15 at 100.00 AAA 255,408
------------------------------------------------------------------------------------------------------------------------------------
26,585 Total Tax Obligation/General 29,149,269
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 24.4% (17.1% OF TOTAL INVESTMENTS)
1,000 Brea and Olinda Unified School District, Orange County, 8/11 at 101.00 AAA 1,050,150
California, Certificates of Participation Refunding,
Series 2002A, 5.125%, 8/01/26 - FSA Insured
California Infrastructure Economic Development Bank, Revenue
Bonds, North County Center for Self-Sufficiency Corporation,
Series 2004:
1,215 5.000%, 12/01/19 - AMBAC Insured 12/13 at 100.00 AAA 1,294,036
1,615 5.000%, 12/01/21 - AMBAC Insured 12/13 at 100.00 AAA 1,713,418
1,900 Corona-Norco Unified School District, Riverside County, 9/12 at 100.00 AAA 2,023,766
California, Special Tax Bonds, Community Facilities
District 98-1, Series 2002, 5.100%, 9/01/25 - AMBAC Insured
5,000 El Monte, California, Senior Lien Certificates of Participation, 1/11 at 100.00 AAA 5,224,200
Department of Public Services Facility Phase II, Series 2001,
5.250%, 1/01/34 - AMBAC Insured
150 Hesperia Community Redevelopment Agency, California, 9/15 at 100.00 AAA 160,236
Tax Allocation Bonds, Series 2005A, 5.000%, 9/01/20 -
XLCA Insured
1,400 Indian Wells Redevelopment Agency, California, Tax Allocation 9/13 at 100.00 AAA 1,484,896
Bonds, Consolidated Whitewater Project Area, Series 2003A,
5.000%, 9/01/20 - AMBAC Insured
895 Los Angeles Community Redevelopment Agency, California, 12/14 at 100.00 AAA 956,773
Tax Allocation Bonds, Bunker Hill Project, Series 2004A,
5.000%, 12/01/20 - FSA Insured
1,000 Los Angeles County Metropolitan Transportation Authority, 7/13 at 100.00 AAA 1,073,220
California, Proposition A First Tier Senior Sales Tax Revenue
Bonds, Series 2003B, 5.000%, 7/01/19 - MBIA Insured
3,000 Los Angeles County Metropolitan Transportation Authority, 7/15 at 100.00 AAA 3,196,830
California, Proposition A First Tier Senior Sales Tax Revenue
Bonds, Series 2005A, 5.000%, 7/01/26 - AMBAC Insured
165 Rialto Redevelopment Agency, California, Tax Allocation 9/15 at 100.00 AAA 171,778
Bonds, Merged Project Area, Series 2005A, 5.000%, 9/01/35 -
XLCA Insured
345 Riverside County Public Financing Authority, California, 10/15 at 100.00 AAA 359,259
Tax Allocation Bonds, Multiple Projects, Series 2005A,
5.000%, 10/01/35 - XLCA Insured
3,000 Santa Clara County Financing Authority, California, Lease 11/07 at 102.00 AAA 3,131,640
Revenue Bonds, VMC Facility Replacement Project,
Series 1997A, 5.000%, 11/15/22 - AMBAC Insured
2,805 Yucaipa-Calimesa Joint Unified School District, San Bernardino 10/11 at 100.00 AAA 2,896,639
County, California, General Obligation Refunding Bonds,
Series 2001A, 5.000%, 10/01/31 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
23,490 Total Tax Obligation/Limited 24,736,841
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 3.5% (2.5% OF TOTAL INVESTMENTS)
3,400 San Diego Unified Port District, California, Revenue Bonds, 9/14 at 100.00 AAA 3,564,390
Series 2004B, 5.000%, 9/01/29 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 43.1% (30.2% OF TOTAL INVESTMENTS) (4)
2,000 California State Public Works Board, Lease Revenue Bonds, 11/09 at 101.00 AAA 2,185,040
Department of Health Services, Series 1999A,
5.750%, 11/01/24 (Pre-refunded 11/01/09) - MBIA Insured
24
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
California, Various Purpose General Obligation Bonds, Series 2000:
$ 7,995 5.750%, 3/01/22 (Pre-refunded 3/01/10) - MBIA Insured 3/10 at 101.00 AAA $ 8,795,539
2,000 5.750%, 3/01/27 (Pre-refunded 3/01/10) - MBIA Insured 3/10 at 101.00 AAA 2,200,260
2,500 Fresno Unified School District, Fresno County, California, 8/09 at 102.00 AAA 2,655,975
General Obligation Bonds, Series 2001A, 5.125%, 8/01/26 -
FSA Insured (ETM)
6,000 Huntington Park Redevelopment Agency, California, Single No Opt. Call AAA 8,531,880
Family Residential Mortgage Revenue Refunding Bonds,
Series 1986A, 8.000%, 12/01/19 (ETM)
1,000 Los Angeles Unified School District, California, General 7/08 at 102.00 AAA 1,056,140
Obligation Bonds, Series 1997A, 5.000%, 7/01/21
(Pre-refunded 7/01/08) - FGIC Insured
5,135 Palmdale Community Redevelopment Agency, California, No Opt. Call AAA 6,832,990
Single Family Restructured Mortgage Revenue Bonds,
Series 1986A, 8.000%, 3/01/16 (Alternative Minimum Tax) (ETM)
6,220 Riverside County, California, GNMA Mortgage-Backed Securities No Opt. Call AAA 9,376,151
Program Single Family Mortgage Revenue Bonds,
Series 1987A, 9.000%, 5/01/21 (Alternative Minimum Tax) (ETM)
1,485 San Jose, California, Single Family Mortgage Revenue Bonds, No Opt. Call AAA 2,033,871
Series 1985A, 9.500%, 10/01/13 (ETM)
------------------------------------------------------------------------------------------------------------------------------------
34,335 Total U.S. Guaranteed 43,667,846
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 3.2% (2.2% OF TOTAL INVESTMENTS)
345 Merced Irrigation District, California, Electric System Revenue 9/15 at 100.00 AAA 364,399
Bonds, Series 2005, 5.125%, 9/01/31 - XLCA Insured
2,600 Sacramento Municipal Utility District, California, Electric No Opt. Call AAA 2,843,672
Revenue Refunding Bonds, Series 2003S, 5.000%, 11/15/13 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
2,945 Total Utilities 3,208,071
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 24.2% (17.0% OF TOTAL INVESTMENTS)
5,255 El Dorado Irrigation District, California, Water and Sewer 3/13 at 100.00 AAA 5,601,830
Certificates of Participation, Series 2003A, 5.000%, 3/01/20 -
FGIC Insured
1,230 El Dorado Irrigation District, California, Water and Sewer 3/14 at 100.00 AAA 1,307,072
Certificates of Participation, Series 2004A, 5.000%, 3/01/21 -
FGIC Insured
1,000 Los Angeles, California, Wastewater System Revenue Bonds, 5/06 at 100.00 AAA 1,000,530
Series 1993D, 4.700%, 11/01/19 - FGIC Insured
750 Sacramento County Sanitation District Financing Authority, 12/14 at 100.00 AAA 804,623
California, Revenue Bonds, Series 2004A, 5.000%, 12/01/21 -
AMBAC Insured
3,400 San Diego Public Facilities Financing Authority, California, 5/07 at 101.00 AAA 3,503,360
Sewerage Revenue Bonds, Series 1997A, 5.250%, 5/15/22 -
FGIC Insured
2,150 Santa Clara Valley Water District, California, Water 6/10 at 100.00 AAA 2,261,607
Utility System Revenue Bonds, Series 2000A,
5.125%, 6/01/31 - FGIC Insured
1,310 Santa Fe Springs Public Financing Authority, California, 5/13 at 100.00 AAA 1,380,491
Water Revenue Bonds, Series 2003A, 5.000%, 5/01/33 -
MBIA Insured
1,345 West Basin Municipal Water District, California, Revenue 8/13 at 100.00 AAA 1,425,754
Certificates of Participation, Series 2003A, 5.000%, 8/01/20 -
MBIA Insured
25
Nuveen Insured California Premium Income Municipal Fund, Inc. (NPC) (continued)
Portfolio of INVESTMENTS February 28, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 2,000 Westlands Water District, California, Revenue Certificates 3/15 at 100.00 AAA $ 2,099,840
of Participation, Series 2005A, 5.000%, 9/01/30 - MBIA Insured
5,000 Wheeler Ridge-Maricopa Water District, Kern County, California, 11/06 at 102.00 AAA 5,175,350
Water Revenue Refunding Bonds, Series 1996,
5.700%, 11/01/15 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
23,440 Total Water and Sewer 24,560,457
------------------------------------------------------------------------------------------------------------------------------------
$ 128,970 Total Investments (cost $133,196,250) - 142.5% 144,447,731
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.9% 1,885,038
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (44.4)% (45,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 101,332,769
====================================================================================================================
All of the bonds in the Portfolio of Investments, excluding
temporary investments in short-term municipal securities,
are either covered by Original Issue Insurance, Secondary
Market Insurance or Portfolio Insurance, or are backed by an
escrow or trust containing sufficient U.S. Government or
U.S. Government agency securities, any of which ensure the
timely payment of principal and interest.
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices
of the earliest optional call or redemption. There may be
other call provisions at varying prices at later dates.
Certain mortgage-backed securities may be subject to
periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's or Moody's
rating. Ratings below BBB by Standard & Poor's Group or Baa
by Moody's Investor Service, Inc. are considered to be below
investment grade.
(4) Investment is backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensure the timely payment of principal and
interest.
(ETM) Investment is escrowed to maturity.
See accompanying notes to financial statements.
26
Nuveen Insured California Premium Income Municipal Fund 2, Inc. (NCL)
Portfolio of
INVESTMENTS February 28, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 12.4% (8.4% OF TOTAL INVESTMENTS)
California Educational Facilities Authority, Revenue Bonds,
Santa Clara University, Series 1996:
$ 2,400 5.750%, 9/01/21 - MBIA Insured 9/06 at 102.00 AAA $ 2,479,080
3,000 5.750%, 9/01/26 - MBIA Insured 9/06 at 102.00 AAA 3,094,500
2,000 California Educational Facilities Authority, Revenue Bonds, 11/10 at 100.00 Aaa 2,199,300
University of the Pacific, Series 2000, 5.875%, 11/01/20 -
MBIA Insured
2,125 California Educational Facilities Authority, Student Loan 3/08 at 102.00 Aaa 2,216,311
Revenue Bonds, Cal Loan Program, Series 2001A,
5.400%, 3/01/21 - MBIA Insured (Alternative Minimum Tax)
5,380 California State University, Systemwide Revenue Bonds, 5/14 at 100.00 AAA 5,828,961
Series 2004A, 5.000%, 11/01/16 - FSA Insured
1,500 California State University, Systemwide Revenue Bonds, 5/15 at 100.00 AAA 1,598,145
Series 2005A, 5.000%, 11/01/25 - AMBAC Insured
6,000 University of California, Revenue Bonds, Multi-Purpose 5/13 at 100.00 AAA 6,301,440
Projects, Series 2003A, 5.000%, 5/15/27 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
22,405 Total Education and Civic Organizations 23,717,737
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 1.8% (1.2% OF TOTAL INVESTMENTS)
1,450 California Health Facilities Financing Authority, Insured 7/06 at 102.00 AAA 1,491,368
Health Facility Revenue Refunding Bonds, Mark Twain
St. Joseph's Healthcare Corporation, Series 1996A, 6.000%,
7/01/19 - MBIA Insured
1,755 University of California, Hospital Revenue Bonds, UCLA 5/12 at 101.00 AAA 1,940,223
Medical Center, Series 2004A, 5.500%, 5/15/18 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
3,205 Total Health Care 3,431,591
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.7% (0.4% OF TOTAL INVESTMENTS)
1,100 California Housing Finance Agency, Single Family Mortgage 8/07 at 101.50 AAA 1,132,879
Bonds, Series 1997C-2-II, 5.625%, 8/01/20 - MBIA Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 14.7% (10.0% OF TOTAL INVESTMENTS)
1,460 ABC Unified School District, Los Angeles County, California, 8/10 at 101.00 AAA 1,607,445
General Obligation Bonds, Series 2000B, 5.750%, 8/01/16 -
FGIC Insured
4,400 California, General Obligation Bonds, Series 2003, 2/13 at 100.00 AAA 4,592,016
5.000%, 2/01/31 - MBIA Insured
California, General Obligation Bonds, Series 2004:
1,000 5.000%, 2/01/18 - AMBAC Insured 2/14 at 100.00 AAA 1,071,170
2,250 5.000%, 4/01/31 - AMBAC Insured 4/14 at 100.00 AAA 2,362,072
3,000 California, General Obligation Veterans Welfare Bonds, 6/07 at 101.00 AAA 3,094,620
Series 2001BZ, 5.375%, 12/01/24 - MBIA Insured (Alternative
Minimum Tax)
1,910 Fresno Unified School District, Fresno County, California, No Opt. Call AAA 2,379,765
General Obligation Bonds, Series 2002A, 6.000%, 8/01/26 -
MBIA Insured
1,255 Los Angeles Community College District, Los Angeles County, 8/15 at 100.00 AAA 1,341,005
California, General Obligation Bonds, Series 2005A,
5.000%, 8/01/24 - FSA Insured
2,200 Los Angeles Unified School District, California, General 7/13 at 100.00 AAA 2,361,084
Obligation Bonds, Series 2003F, 5.000%, 7/01/17 -
FSA Insured
1,270 Merced City School District, Merced County, California, 8/13 at 100.00 AAA 1,352,283
General Obligation Bonds, Series 2004, 5.000%, 8/01/22 -
FGIC Insured
27
Nuveen Insured California Premium Income Municipal Fund 2, Inc. (NCL) (continued)
Portfolio of INVESTMENTS February 28, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
Oakland Unified School District, Alameda County, California,
General Obligation Bonds, Series 2005:
$ 405 5.000%, 8/01/25 - MBIA Insured 8/15 at 100.00 AAA $ 430,803
430 5.000%, 8/01/26 - MBIA Insured 8/15 at 100.00 AAA 457,051
1,125 San Diego Unified School District, California, General Obligation No Opt. Call AAA 575,258
Bonds, Election of 1998, Series 1999A, 0.000%, 7/01/21 -
FGIC Insured
2,000 San Francisco Community College District, California, General 6/10 at 102.00 Aaa 2,092,680
Obligation Bonds, Series 2002A, 5.000%, 6/15/26 - FGIC Insured
San Jose-Evergreen Community College District, Santa Clara
County, California, General Obligation Bonds, Series 2005A:
320 5.000%, 9/01/25 - MBIA Insured 9/15 at 100.00 AAA 341,578
465 5.000%, 9/01/27 - MBIA Insured 9/15 at 100.00 AAA 494,853
1,000 San Ramon Valley Unified School District, Contra Costa County, 8/14 at 100.00 AAA 1,062,440
California, General Obligation Bonds, Series 2004,
5.000%, 8/01/24 - FSA Insured
2,445 Washington Unified School District, Yolo County, California, 8/13 at 100.00 AAA 2,603,412
General Obligation Bonds, Series 2004A, 5.000%, 8/01/21 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
26,935 Total Tax Obligation/General 28,219,535
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 44.6% (30.2% OF TOTAL INVESTMENTS)
Anaheim Public Finance Authority, California, Subordinate Lease
Revenue Bonds, Public Improvement Project, Series 1997C:
5,130 0.000%, 9/01/18 - FSA Insured No Opt. Call AAA 3,018,595
8,000 0.000%, 9/01/21 - FSA Insured No Opt. Call AAA 4,067,200
3,500 California Department of Transportation, Federal Highway No Opt. Call AAA 3,835,265
Grant Anticipation Bonds, Series 2004A, 5.000%, 2/01/15 -
FGIC Insured
California Infrastructure Economic Development Bank, Revenue
Bonds, North County Center for Self-Sufficiency Corporation,
Series 2004:
1,535 5.000%, 12/01/20 - AMBAC Insured 12/13 at 100.00 AAA 1,630,631
1,780 5.000%, 12/01/23 - AMBAC Insured 12/13 at 100.00 AAA 1,879,983
5,000 Compton Community Redevelopment Agency, California, 8/06 at 101.00 AAA 5,112,750
Tax Allocation Refunding Bonds, Merged Area Redevelopment
Projects, Series 1995A, 6.500%, 8/01/13 - FSA Insured
4,000 Contra Costa County, California, Certificates of Participation 11/07 at 102.00 AAA 4,202,320
Refunding, Merrithew Memorial Hospital Replacement,
Series 1997, 5.500%, 11/01/22 - MBIA Insured
6,000 El Monte, California, Senior Lien Certificates of Participation, 1/11 at 100.00 AAA 6,230,640
Department of Public Services Facility Phase II, Series 2001,
5.000%, 1/01/21 - AMBAC Insured
8,280 Fontana Public Financing Authority, California, Tax Allocation 10/15 at 100.00 AAA 8,693,420
Revenue Bonds, North Fontana Redevelopment Project,
Series 2005A, 5.000%, 10/01/32 - AMBAC Insured
3,000 Galt Schools Joint Powers Authority, Sacramento County, 11/07 at 102.00 AAA 3,177,960
California, Revenue Refunding Bonds, High School and
Elementary School Facilities, Series 1997A, 5.875%, 11/01/24 -
MBIA Insured
285 Hesperia Community Redevelopment Agency, California, 9/15 at 100.00 AAA 304,448
Tax Allocation Bonds, Series 2005A, 5.000%, 9/01/20 -
XLCA Insured
5,000 Kern County Board of Education, California, Certificates of 5/08 at 102.00 AAA 5,243,550
Participation Refunding, Series 1998A, 5.200%, 5/01/28 -
MBIA Insured
5,000 La Quinta Redevelopment Agency, California, Tax Allocation 9/07 at 102.00 AAA 5,200,200
Refunding Bonds, Redevelopment Project Area 1, Series 1998,
5.200%, 9/01/28 - AMBAC Insured
2,300 Long Beach Bond Finance Authority, California, Multiple 8/15 at 100.00 AAA 2,429,996
Project Tax Allocation Bonds, Housing and Gas Utility
Financing Project Areas, Series 2005A-1, 5.000%, 8/01/25 -
AMBAC Insured
1,000 Los Angeles Community Redevelopment Agency, California, 12/14 at 100.00 AAA 1,069,020
Tax Allocation Bonds, Bunker Hill Project, Series 2004A,
5.000%, 12/01/20 - FSA Insured
1,250 Los Angeles County Metropolitan Transportation Authority, 7/13 at 100.00 AAA 1,341,525
California, Proposition A First Tier Senior Sales Tax Revenue
Bonds, Series 2003B, 5.000%, 7/01/19 - MBIA Insured
2,500 Los Angeles County Metropolitan Transportation Authority, 7/15 at 100.00 AAA 2,664,025
California, Proposition A First Tier Senior Sales Tax Revenue
Bonds, Series 2005A, 5.000%, 7/01/26 - AMBAC Insured
28
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 3,865 Los Angeles County Metropolitan Transportation Authority, 7/10 at 101.00 AAA $ 4,125,578
California, Proposition C Second Senior Lien Sales Tax Revenue
Bonds, Series 2000A, 5.250%, 7/01/30 - FGIC Insured
4,000 Los Angeles, California, Certificates of Participation, 6/13 at 100.00 AAA 4,156,280
Municipal Improvement Corporation, Series 2003AW,
5.000%, 6/01/33 - AMBAC Insured
2,780 Pittsburg Redevelopment Agency, California, Tax Allocation No Opt. Call AAA 3,006,709
Refunding Bonds, Los Medanos Community Development
Project, Series 2003A, 5.000%, 8/01/12 - MBIA Insured
4,140 Plumas County, California, Certificates of Participation, 6/13 at 101.00 AAA 4,340,873
Capital Improvement Program, Series 2003A,
5.000%, 6/01/28 - AMBAC Insured
2,000 Poway Redevelopment Agency, California, Tax Allocation 12/10 at 102.00 AAA 2,219,700
Refunding Bonds, Paguay Redevelopment Project,
Series 2000, 5.750%, 6/15/33 - MBIA Insured
325 Rialto Redevelopment Agency, California, Tax Allocation 9/15 at 100.00 AAA 338,351
Bonds, Merged Project Area, Series 2005A, 5.000%, 9/01/35 -
XLCA Insured
685 Riverside County Public Financing Authority, California, 10/15 at 100.00 AAA 713,311
Tax Allocation Bonds, Multiple Projects, Series 2005A,
5.000%, 10/01/35 - XLCA Insured
1,000 Rocklin Unified School District, Placer County, California, 9/13 at 100.00 AAA 1,061,770
Special Tax Bonds, Community Facilities District 1,
Series 2004, 5.000%, 9/01/25 - MBIA Insured
5,000 San Bernardino Joint Powers Financing Authority, California, 9/09 at 102.00 AAA 5,412,850
Certificates of Participation Refunding, Police Station
Financing Project, Series 1999, 5.500%, 9/01/20 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
87,355 Total Tax Obligation/Limited 85,476,950
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 6.8% (4.6% OF TOTAL INVESTMENTS)
6,500 Foothill/Eastern Transportation Corridor Agency, California, 1/10 at 65.32 AAA 3,613,935
Toll Road Revenue Refunding Bonds, Series 1999,
0.000%, 1/15/18 - MBIA Insured
4,000 Orange County Transportation Authority, California, Toll Road 8/13 at 100.00 AAA 4,297,240
Revenue Bonds, 91 Express Lanes Project, Series 2003A,
5.000%, 8/15/18 - AMBAC Insured
5,000 San Francisco Airports Commission, California, Revenue 5/11 at 100.00 AAA 5,172,250
Refunding Bonds, San Francisco International Airport,
Second Series 2001, Issue 27A, 5.250%, 5/01/31 -
MBIA Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
15,500 Total Transportation 13,083,425
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 32.3% (21.8% OF TOTAL INVESTMENTS) (4)
California Infrastructure Economic Development Bank, Revenue
Bonds, Asian Art Museum of San Francisco, Series 2000:
1,295 5.500%, 6/01/19 (Pre-refunded 6/01/10) - MBIA Insured 6/10 at 101.00 AAA 1,417,870
1,000 5.500%, 6/01/20 (Pre-refunded 6/01/10) - MBIA Insured 6/10 at 101.00 AAA 1,094,880
3,450 California State Public Works Board, Lease Revenue Bonds, 11/09 at 101.00 AAA 3,769,194
Department of Health Services, Series 1999A, 5.750%, 11/01/24
(Pre-refunded 11/01/09) - MBIA Insured
2,500 California, Various Purpose General Obligation Bonds, 9/09 at 101.00 AAA 2,705,850
Series 1999, 5.500%, 9/01/24 (Pre-refunded 9/01/09) -
FSA Insured
California, Various Purpose General Obligation Bonds, Series 2000:
7,995 5.750%, 3/01/22 (Pre-refunded 3/01/10) - MBIA Insured 3/10 at 101.00 AAA 8,795,539
1,900 5.750%, 3/01/27 (Pre-refunded 3/01/10) - MBIA Insured 3/10 at 101.00 AAA 2,090,247
2,580 Central Unified School District, Fresno County, California, 3/06 at 100.00 AAA 2,611,347
General Obligation Bonds, Series 1993, 5.625%, 3/01/18 -
AMBAC Insured (ETM)
3,000 Escondido Union High School District, San Diego County, 11/06 at 102.00 AAA 3,105,840
California, General Obligation Bonds, Series 1996,
5.700%, 11/01/10 - MBIA Insured (ETM)
Fresno Unified School District, Fresno County, California,
General Obligation Bonds, Series 2001F:
1,065 5.125%, 8/01/21 - FSA Insured (ETM) 8/09 at 102.00 AAA 1,138,570
1,160 5.125%, 8/01/22 - FSA Insured (ETM) 8/09 at 102.00 AAA 1,240,133
1,220 5.125%, 8/01/23 - FSA Insured (ETM) 8/09 at 102.00 AAA 1,304,278
1,500 Hacienda La Puente Unified School District, Los Angeles 8/10 at 101.00 AAA 1,630,830
County, California, General Obligation Bonds, Series 2000A,
5.250%, 8/01/25 (Pre-refunded 8/01/10) - MBIA Insured
29
Nuveen Insured California Premium Income Municipal Fund 2, Inc. (NCL) (continued)
Portfolio of INVESTMENTS February 28, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
Kern Community College District, California, General Obligation
Bonds, Series 2003A:
$ 3,655 5.000%, 11/01/20 (Pre-refunded 11/01/13) - FGIC Insured 11/13 at 100.00 AAA $ 3,984,571
2,665 5.000%, 11/01/21 (Pre-refunded 11/01/13) - FGIC Insured 11/13 at 100.00 AAA 2,905,303
1,750 Lake Tahoe Unified School District, El Dorado County, California, 8/09 at 100.00 AAA 1,865,342
General Obligation Bonds, Series 1999A, 5.250%, 8/01/24
(Pre-refunded 8/01/09) - FGIC Insured
Manteca Unified School District, San Joaquin County, California,
General Obligation Bonds, Series 2004:
1,000 5.250%, 8/01/21 (Pre-refunded 8/01/14) - FSA Insured 8/14 at 100.00 AAA 1,111,440
1,000 5.250%, 8/01/22 (Pre-refunded 8/01/14) - FSA Insured 8/14 at 100.00 AAA 1,111,440
440 Menifee Union School District, Riverside County, California, 9/06 at 102.00 AAA 454,982
Certificates of Participation, School Projects, Series 1996,
6.125%, 9/01/24 (Pre-refunded 9/01/06) - FSA Insured
2,500 Oakland, California, Insured Revenue Bonds, 1800 Harrison 1/10 at 100.00 AAA 2,742,975
Foundation - Kaiser Permanente, Series 1999A,
6.000%, 1/01/29 (Pre-refunded 1/01/10) - AMBAC Insured
4,320 Riverside County, California, GNMA Mortgage-Backed No Opt. Call AAA 5,900,429
Securities Program Single Family Mortgage Revenue Bonds,
Series 1987B, 8.625%, 5/01/16 (Alternative Minimum Tax) (ETM)
1,270 Sacramento City Financing Authority, California, Capital 12/09 at 102.00 AAA 1,405,750
Improvement Revenue Bonds, Solid Waste and Redevelopment
Projects, Series 1999, 5.800%, 12/01/19 (Pre-refunded
12/01/09) - AMBAC Insured
1,000 Sacramento County Sanitation District Financing Authority, 12/10 at 101.00 AAA 1,101,300
California, Revenue Bonds, Series 2000A, 5.500%, 12/01/20
(Pre-refunded 12/01/10) - AMBAC Insured
3,500 San Francisco Bay Area Rapid Transit District, California, 7/09 at 101.00 AAA 3,775,835
Sales Tax Revenue Bonds, Series 1999, 5.500%, 7/01/34
(Pre-refunded 7/01/09) - FGIC Insured
4,450 Visalia, California, Certificates of Participation Refunding, 12/06 at 102.00 AAA 4,608,331
Motor Vehicle License Fee Enhancement, Series 1996A,
5.375%, 12/01/26 (Pre-refunded 12/01/06) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
56,215 Total U.S. Guaranteed 61,872,276
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 11.8% (8.0% OF TOTAL INVESTMENTS)
3,740 California Pollution Control Financing Authority, Revenue 9/09 at 101.00 AAA 3,973,675
Refunding Bonds, Southern California Edison Company,
Series 1999B, 5.450%, 9/01/29 - MBIA Insured
670 Merced Irrigation District, California, Electric System Revenue 9/15 at 100.00 AAA 707,674
Bonds, Series 2005, 5.125%, 9/01/31 - XLCA Insured
3,215 Modesto Irrigation District, California, Revenue Refunding 10/06 at 102.00 AAA 3,327,525
Bonds, Series 1996A, 6.000%, 10/01/15 - MBIA Insured
3,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/12 at 101.00 AAA 3,740,800
Series 2002II, 5.125%, 7/01/26 - FSA Insured
520 Sacramento City Financing Authority, California, Capital 12/09 at 102.00 AAA 571,631
Improvement Revenue Bonds, Solid Waste and Redevelopment
Projects, Series 1999, 5.800%, 12/01/19 - AMBAC Insured
1,950 Salinas Valley Solid Waste Authority, California, Revenue 8/12 at 100.00 AAA 2,044,595
Bonds, Series 2002, 5.250%, 8/01/27 - AMBAC Insured
(Alternative Minimum Tax)
Santa Clara, California, Subordinate Electric Revenue Bonds,
Series 2003A:
2,800 5.000%, 7/01/24 - MBIA Insured 7/13 at 100.00 AAA 2,966,236
5,000 5.000%, 7/01/28 - MBIA Insured 7/13 at 100.00 AAA 5,245,350
------------------------------------------------------------------------------------------------------------------------------------
21,395 Total Utilities 22,577,486
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 22.8% (15.4% OF TOTAL INVESTMENTS)
1,700 Castaic Lake Water Agency, California, Revenue Certificates 8/14 at 100.00 AAA 1,813,628
of Participation, Series 2004A, 5.000%, 8/01/20 -
AMBAC Insured
2,975 Chino Basin Regional Finance Authority, California, Sewerage 8/06 at 100.00 AAA 3,008,052
System Revenue Bonds, Inland Empire Utilities Agency,
Series 1994, 6.000%, 8/01/16 - AMBAC Insured
2,000 El Dorado Irrigation District, California, Water and Sewer 3/14 at 100.00 AAA 2,125,320
Certificates of Participation, Series 2004A, 5.000%, 3/01/21 -
FGIC Insured
2,700 Los Angeles County Sanitation Districts Financing Authority, 10/13 at 100.00 AAA 2,877,012
California, Senior Revenue Bonds, Capital Projects,
Series 2003A, 5.000%, 10/01/21 - FSA Insured
30
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 12,000 Orange County Sanitation District, California, Certificates 8/13 at 100.00 AAA $ 12,486,120
of Participation, Series 2003, 5.000%, 2/01/33 - FGIC Insured
2,775 Pomona Public Financing Authority, California, Revenue Bonds, 5/09 at 101.00 AAA 2,949,603
Water Facilities Project, Series 1999AC, 5.500%, 5/01/29 -
FGIC Insured
750 Sacramento County Sanitation District Financing Authority, 12/14 at 100.00 AAA 804,623
California, Revenue Bonds, Series 2004A, 5.000%, 12/01/21 -
AMBAC Insured
1,520 San Buenaventura, California, Water Revenue Certificates 10/14 at 100.00 AAA 1,604,086
of Participation, Series 2004, 5.000%, 10/01/25 -
AMBAC Insured
3,675 San Dieguito Water District, California, Water Revenue Bonds, 10/14 at 100.00 AAA 3,919,204
Series 2004, 5.000%, 10/01/23 - FGIC Insured
Santa Clara Valley Water District, California, Certificates of
Participation, Series 2004A:
1,400 5.000%, 2/01/19 - FGIC Insured 2/14 at 100.00 AAA 1,492,778
445 5.000%, 2/01/20 - FGIC Insured 2/14 at 100.00 AAA 473,244
465 5.000%, 2/01/21 - FGIC Insured 2/14 at 100.00 AAA 493,867
2,130 Santa Rosa, Sonoma County, California, Wastewater Revenue 9/14 at 100.00 AAA 2,295,863
Bonds, Series 2004B, 5.000%, 9/01/18 - FGIC Insured
2,500 West Basin Municipal Water District, California, Revenue 8/13 at 100.00 AAA 2,606,125
Certificates of Participation, Series 2003A, 5.000%, 8/01/30 -
MBIA Insured
Yorba Linda Water District, California, Certificates of
Participation, Highland Reservoir Renovation, Series 2003:
2,010 5.000%, 10/01/28 - FGIC Insured 10/13 at 100.00 AAA 2,111,525
2,530 5.000%, 10/01/33 - FGIC Insured 10/13 at 100.00 AAA 2,646,076
------------------------------------------------------------------------------------------------------------------------------------
41,575 Total Water and Sewer 43,707,126
------------------------------------------------------------------------------------------------------------------------------------
$ 275,685 Total Investments (cost $267,686,107) - 147.9% 283,219,005
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.7% 3,265,216
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.6)% (95,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 191,484,221
====================================================================================================================
All of the bonds in the Portfolio of Investments, excluding
temporary investments in short-term municipal securities,
are either covered by Original Issue Insurance, Secondary
Market Insurance or Portfolio Insurance, or are backed by an
escrow or trust containing sufficient U.S. Government or
U.S. Government agency securities, any of which ensure the
timely payment of principal and interest.
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices
of the earliest optional call or redemption. There may be
other call provisions at varying prices at later dates.
Certain mortgage-backed securities may be subject to
periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's or Moody's
rating. Ratings below BBB by Standard & Poor's Group or Baa
by Moody's Investor Service, Inc. are considered to be below
investment grade.
(4) Investment are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensure the timely payment of principal and
interest.
(ETM) Investment is escrowed to maturity.
See accompanying notes to financial statements.
31
Nuveen California Premium Income Municipal Fund (NCU)
Portfolio of
INVESTMENTS February 28, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 6.5% (4.3% OF TOTAL INVESTMENTS)
$ 1,500 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 Baa3 $ 1,557,645
Settlement Asset-Backed Bonds, Alameda County Tobacco
Asset Securitization Corporation, Series 2002, 5.750%, 6/01/29
310 California County Tobacco Securitization Agency, Tobacco 6/15 at 100.00 BBB 300,995
Settlement Asset-Backed Bonds, Sonoma County Tobacco
Securitization Corporation, Series 2005, 4.250%, 6/01/21
3,540 California Statewide Financing Authority, Tobacco Settlement 5/12 at 100.00 Baa3 3,651,298
Asset-Backed Bonds, Pooled Tobacco Securitization Program,
Series 2002A, 5.625%, 5/01/29
------------------------------------------------------------------------------------------------------------------------------------
5,350 Total Consumer Staples 5,509,938
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 1.9% (1.3% OF TOTAL INVESTMENTS)
1,500 University of California, Revenue Bonds, Multi-Purpose Projects, 5/13 at 100.00 AAA 1,621,830
Series 2003A, 5.125%, 5/15/17 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 12.4% (8.3% OF TOTAL INVESTMENTS)
4,705 California Health Facilities Financing Authority, Hospital 5/06 at 100.00 BB 4,705,988
Revenue Bonds, Downey Community Hospital, Series 1993,
5.750%, 5/15/15
480 California Health Facilities Financing Authority, Revenue Bonds, 11/15 at 100.00 A3 490,906
Cedars-Sinai Medical Center, Series 2005, 5.000%, 11/15/34
1,500 California Infrastructure Economic Development Bank, 8/11 at 102.00 A+ 1,598,040
Revenue Bonds, Kaiser Hospital Assistance LLC, Series 2001A,
5.550%, 8/01/31
California Statewide Community Development Authority, Revenue
Bonds, Daughters of Charity Health System, Series 2005A:
125 5.250%, 7/01/24 7/15 at 100.00 BBB+ 131,348
260 5.250%, 7/01/35 7/15 at 100.00 BBB+ 269,997
3,100 California Statewide Community Development Authority, No Opt. Call AAA 3,355,161
Revenue Bonds, Sherman Oaks Health System, Series 1998A,
5.000%, 8/01/22 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
10,170 Total Health Care 10,551,440
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.9% (1.3% OF TOTAL INVESTMENTS)
1,600 California Statewide Community Development Authority, 7/08 at 101.00 BBB 1,653,440
Revenue Refunding Bonds, Irvine Apartment Communities
Development, Series 1998A, 5.250%, 5/15/25 (Mandatory
put 5/15/13)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.3% (0.2% OF TOTAL INVESTMENTS)
280 California Housing Finance Agency, Single Family Mortgage 2/07 at 102.00 AAA 288,700
Bonds II, Series 1997A-1, 6.000%, 8/01/20 - MBIA Insured
(Alternative Minimum Tax)
35 California Rural Home Mortgage Finance Authority, No Opt. Call AAA 35,537
Mortgage-Backed Securities Program Single Family
Mortgage Revenue Bonds, Series 1996C, 7.500%, 8/01/27
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
315 Total Housing/Single Family 324,237
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 31.9% (21.4% OF TOTAL INVESTMENTS)
California, General Obligation Bonds, Series 2003:
1,000 5.250%, 11/01/19 - RAAI Insured 11/13 at 100.00 AA 1,091,030
1,055 5.250%, 2/01/21 8/13 at 100.00 A 1,141,426
1,500 5.000%, 2/01/31 - MBIA Insured 2/13 at 100.00 AAA 1,565,460
California, General Obligation Bonds, Series 2004:
1,750 5.000%, 4/01/22 4/14 at 100.00 A 1,846,985
1,750 5.000%, 2/01/23 2/14 at 100.00 A 1,841,683
1,400 5.200%, 4/01/26 4/14 at 100.00 A 1,502,396
California, General Obligation Bonds, Series 2005:
1,000 5.000%, 3/01/31 3/16 at 100.00 A 1,044,440
3,000 5.000%, 3/01/32 3/16 at 100.00 A 3,132,090
32
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 4,000 California, General Obligation Veterans Welfare Bonds, 6/06 at 100.00 A $ 4,002,400
Series 1999BR, 5.300%, 12/01/29 (Alternative Minimum Tax)
1,000 Fremont Unified School District, Alameda County, California, 8/12 at 101.00 AAA 1,064,790
General Obligation Bonds, Series 2002A, 5.000%, 8/01/21 -
FGIC Insured
550 Los Angeles Community College District, Los Angeles County, 8/15 at 100.00 AAA 586,366
California, General Obligation Bonds, Series 2005A,
5.000%, 6/01/26 - FSA Insured
2,250 Los Angeles Unified School District, California, General 7/13 at 100.00 AAA 2,386,665
Obligation Bonds, Series 2003A, 5.000%, 7/01/22 -
FSA Insured
1,570 Los Angeles Unified School District, California, General 7/15 at 100.00 AAA 1,673,008
Obligation Bonds, Series 2005A-1, 5.000%, 7/01/25 -
FGIC Insured
Oakland Unified School District, Alameda County, California,
General Obligation Bonds, Series 2005:
190 5.000%, 8/01/25 - MBIA Insured 8/15 at 100.00 AAA 202,105
200 5.000%, 8/01/26 - MBIA Insured 8/15 at 100.00 AAA 212,582
3,000 Pomona Unified School District, Los Angeles County, California, 8/11 at 103.00 AAA 3,452,220
General Obligation Refunding Bonds, Series 1997A,
6.150%, 8/01/15 - MBIA Insured
15 Riverside Community College District, California, General 8/14 at 100.00 AAA 16,495
Obligation Bonds, Series 2004A, 5.250%, 8/01/22 -
MBIA Insured
San Jose-Evergreen Community College District, Santa Clara
County, California, General Obligation Bonds, Series 2005A:
140 5.000%, 9/01/25 - MBIA Insured 9/15 at 100.00 AAA 149,440
210 5.000%, 9/01/27 - MBIA Insured 9/15 at 100.00 AAA 223,482
------------------------------------------------------------------------------------------------------------------------------------
25,580 Total Tax Obligation/General 27,135,063
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 47.8% (32.1% OF TOTAL INVESTMENTS)
1,000 Bell Community Redevelopment Agency, California, Tax 10/13 at 100.00 AA 1,074,290
Allocation Bonds, Bell Project Area, Series 2003,
5.625%, 10/01/33 - RAAI Insured
985 Beverly Hills Public Financing Authority, California, Lease 6/13 at 100.00 Aaa 1,078,595
Revenue Refunding Bonds, Series 2003A, 5.250%, 6/01/15 -
MBIA Insured
California Infrastructure Economic Development Bank, Revenue
Bonds, North County Center for Self-Sufficiency Corporation,
Series 2004:
1,695 5.000%, 12/01/22 - AMBAC Insured 12/13 at 100.00 AAA 1,794,819
1,865 5.000%, 12/01/24 - AMBAC Insured 12/13 at 100.00 AAA 1,964,684
5,920 California State Public Works Board, Lease Revenue Bonds, 11/09 at 101.00 AAA 6,378,502
Department of Veterans Affairs, Southern California Veterans
Home - Chula Vista Facility, Series 1999A, 5.600%, 11/01/19 -
AMBAC Insured
1,720 California, Economic Recovery Revenue Bonds, Series 2004A, 7/14 at 100.00 AA- 1,866,922
5.000%, 7/01/15
130 Hesperia Community Redevelopment Agency, California, 9/15 at 100.00 AAA 138,871
Tax Allocation Bonds, Series 2005A, 5.000%, 9/01/20 -
XLCA Insured
3,500 Livermore Redevelopment Agency, California, Tax Allocation 8/11 at 100.00 AAA 3,628,450
Revenue Bonds, Livermore Redevelopment Project Area,
Series 2001A, 5.000%, 8/01/26 - MBIA Insured
1,595 Los Angeles Community Redevelopment Agency, California, 6/06 at 100.00 BBB- 1,596,834
Tax Allocation Multifamily Housing Bonds, Grand Central
Square/Bunker Hill Project, Series 1993A, 5.750%, 12/01/13
(Alternative Minimum Tax)
2,000 Los Angeles County Metropolitan Transportation Authority, 7/13 at 100.00 AAA 2,146,440
California, Proposition A First Tier Senior Sales Tax Revenue
Bonds, Series 2003B, 5.000%, 7/01/19 - MBIA Insured
2,000 Oakland Redevelopment Agency, California, Subordinate Lien 3/13 at 100.00 AAA 2,217,460
Tax Allocation Bonds, Central District Redevelopment Project,
Series 2003, 5.500%, 9/01/15 - FGIC Insured
1,000 Poway, California, Community Facilities District 88-1, Special 8/08 at 102.00 N/R 1,070,730
Tax Refunding Bonds, Parkway Business Centre, Series 1998,
6.500%, 8/15/09
155 Rialto Redevelopment Agency, California, Tax Allocation Bonds, 9/15 at 100.00 AAA 161,367
Merged Project Area, Series 2005A, 5.000%, 9/01/35 -
XLCA Insured
310 Riverside County Public Financing Authority, California, 10/15 at 100.00 AAA 322,812
Tax Allocation Bonds, Multiple Projects, Series 2005A,
5.000%, 10/01/35 - XLCA Insured
33
Nuveen California Premium Income Municipal Fund (NCU) (continued)
Portfolio of INVESTMENTS February 28, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,500 Sacramento City Financing Authority, California, Lease Revenue No Opt. Call AAA $ 1,695,420
Refunding Bonds, Series 1993A, 5.400%, 11/01/20 -
MBIA Insured
3,000 Sacramento City Financing Authority, California, Lease Revenue No Opt. Call AA- 3,326,100
Refunding Bonds, Series 1993B, 5.400%, 11/01/20
5,000 San Francisco Bay Area Rapid Transit District, California, 7/15 at 100.00 AAA 5,340,050
Sales Tax Revenue Bonds, Series 2005A, 5.000%, 7/01/24 -
MBIA Insured
San Marcos Public Facilities Authority, California, Revenue
Refunding Bonds, Series 1998:
1,500 5.800%, 9/01/18 9/08 at 101.00 Baa3 1,577,670
1,000 5.800%, 9/01/27 9/08 at 101.00 Baa3 1,051,780
2,050 Santa Barbara County, California, Certificates of Participation, 12/11 at 102.00 AAA 2,240,691
Series 2001, 5.250%, 12/01/19 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
37,925 Total Tax Obligation/Limited 40,672,487
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 6.1% (4.1% OF TOTAL INVESTMENTS)
3,000 California Infrastructure Economic Development Bank, First 7/13 at 100.00 AAA 3,192,990
Lien Revenue Bonds, San Francisco Bay Area Toll Bridge,
Series 2003A, 5.000%, 7/01/22 - FSA Insured
2,000 Foothill/Eastern Transportation Corridor Agency, California, 1/10 at 100.00 BBB- 1,962,420
Toll Road Revenue Bonds, Series 1995A, 5.000%, 1/01/35
------------------------------------------------------------------------------------------------------------------------------------
5,000 Total Transportation 5,155,410
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 16.7% (11.2% OF TOTAL INVESTMENTS) (4)
California Department of Water Resources, Power Supply
Revenue Bonds, Series 2002A:
400 5.375%, 5/01/17 (Pre-refunded 5/01/12) - XLCA Insured 5/12 at 101.00 AAA 443,172
2,250 5.125%, 5/01/18 (Pre-refunded 5/01/12) 5/12 at 101.00 A2 (4) 2,461,905
1,200 California Health Facilities Financing Authority, Revenue Bonds, 12/09 at 101.00 A3 (4) 1,325,712
Cedars-Sinai Medical Center, Series 1999A, 6.125%, 12/01/30
(Pre-refunded 12/01/09)
Golden State Tobacco Securitization Corporation, California,
Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2003B:
1,000 5.625%, 6/01/33 (Pre-refunded 6/01/13) 6/13 at 100.00 Aaa 1,117,310
1,000 5.500%, 6/01/33 (Pre-refunded 6/01/13) 6/13 at 100.00 Aaa 1,109,440
2,000 Puerto Rico, General Obligation and Public Improvement Bonds, 7/10 at 100.00 AAA 2,179,280
Series 2000, 5.750%, 7/01/21 (Pre-refunded 7/01/10) -
MBIA Insured
1,185 Riverside Community College District, California, General 8/14 at 100.00 AAA 1,317,056
Obligation Bonds, Series 2004A, 5.250%, 8/01/22
(Pre-refunded 8/01/14) - MBIA Insured
2,000 San Francisco Airports Commission, California, Revenue Bonds, 5/06 at 102.00 AAA 2,046,940
San Francisco International Airport, Second Series Issue 10A,
5.700%, 5/01/26 (Pre-refunded 5/01/06) - MBIA Insured
(Alternative Minimum Tax)
2,000 Vista, California, Mobile Home Park Revenue Bonds, Vista 3/24 at 100.00 N/R (4) 2,169,200
Manor Mobile Home Park Project, Series 1999A,
5.750%, 3/15/29 (Pre-refunded 3/15/24)
------------------------------------------------------------------------------------------------------------------------------------
13,035 Total U.S. Guaranteed 14,170,015
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 6.6% (4.4% OF TOTAL INVESTMENTS)
275 Los Angeles Department of Water and Power, California, 7/13 at 100.00 AAA 292,691
Power System Revenue Bonds, Series 2003A-2,
5.000%, 7/01/21 - MBIA Insured
295 Merced Irrigation District, California, Electric System Revenue 9/15 at 100.00 AAA 311,588
Bonds, Series 2005, 5.125%, 9/01/31 - XLCA Insured
4,580 Sacramento Municipal Utility District, California, Electric 8/12 at 100.00 AAA 4,977,910
Revenue Refunding Bonds, Series 2002Q, 5.250%, 8/15/20 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
5,150 Total Utilities 5,582,189
------------------------------------------------------------------------------------------------------------------------------------
34
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 17.1% (11.4% OF TOTAL INVESTMENTS)
$ 1,125 Burbank, California, Wastewater System Revenue Bonds, 6/14 at 100.00 AAA $ 1,192,421
Series 2004A, 5.000%, 6/01/23 - AMBAC Insured
1,095 California Statewide Community Development Authority, 10/13 at 100.00 AAA 1,181,209
Water and Wastewater Revenue Bonds, Pooled Financing
Program, Series 2003A, 5.250%, 10/01/23 - FSA Insured
5,000 Culver City, California, Wastewater Facilities Revenue Refunding 9/09 at 102.00 AAA 5,428,250
Bonds, Series 1999A, 5.700%, 9/01/29 - FGIC Insured
3,495 Orange County Sanitation District, California, Certificates 8/13 at 100.00 AAA 3,762,682
of Participation, Series 2003, 5.250%, 2/01/21 - FGIC Insured
1,000 Sacramento County Water Financing Authority, California, 6/13 at 100.00 AAA 1,063,890
Revenue Bonds, Agency Zones 40-41 System Projects,
Series 2003, 5.000%, 6/01/22 - AMBAC Insured
1,795 Woodbridge Irrigation District, California, Certificates 7/13 at 100.00 BBB+ 1,875,811
of Participation, Water Systems Project, Series 2003,
5.500%, 7/01/33
------------------------------------------------------------------------------------------------------------------------------------
13,510 Total Water and Sewer 14,504,263
------------------------------------------------------------------------------------------------------------------------------------
$ 119,135 Total Investments (cost $120,575,075) - 149.2% 126,880,312
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.4% 1,146,625
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (50.6)% (43,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 85,026,937
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices
of the earliest optional call or redemption. There may be
other call provisions at varying prices at later dates.
Certain mortgage-backed securities may be subject to
periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's or Moody's
rating. Ratings below BBB by Standard & Poor's Group or Baa
by Moody's Investor Service, Inc. are considered to be below
investment grade.
(4) Investment is backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensure the timely payment of principal and
interest. Such investments are normally considered to be
equivalent to AAA rated securities.
N/R Investment is not rated.
See accompanying notes to financial statements.
35
Nuveen California Dividend Advantage Municipal Fund (NAC)
Portfolio of
INVESTMENTS February 28, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.7% (1.9% OF TOTAL INVESTMENTS)
$ 1,330 California County Tobacco Securitization Agency, Tobacco 6/15 at 100.00 BBB $ 1,291,364
Settlement Asset-Backed Bonds, Sonoma County Tobacco
Securitization Corporation, Series 2005, 4.250%, 6/01/21
5,200 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB 5,695,404
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.250%, 6/01/33
3,035 Tobacco Securitization Authority of Southern California, 6/12 at 100.00 BBB 3,096,489
Tobacco Settlement Asset-Backed Bonds, San Diego County
Tobacco Asset Securitization Corporation, Senior Series 2001A,
5.250%, 6/01/27
------------------------------------------------------------------------------------------------------------------------------------
9,565 Total Consumer Staples 10,083,257
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 11.8% (8.1% OF TOTAL INVESTMENTS)
5,000 California Educational Facilities Authority, Revenue Bonds, 12/15 at 100.00 Aaa 5,278,250
Pepperdine University, Series 2005A, 5.000%, 12/01/35 -
AMBAC Insured
615 California Statewide Community Development Authority, 10/13 at 100.00 N/R 635,190
Revenue Bonds, Notre Dame de Namur University, Series 2003,
6.500%, 10/01/23
3,000 Long Beach Bond Financing Authority, California, Lease Revenue 11/11 at 100.00 AAA 3,282,810
Refunding Bonds, Long Beach Aquarium of the South Pacific,
Series 2001, 5.500%, 11/01/17 - AMBAC Insured
700 University of California, Certificates of Participation, San Diego 1/10 at 101.00 Aa2 734,678
and Sacramento Campus Projects, Series 2002A,
5.250%, 1/01/22
6,000 University of California, Revenue Bonds, Multiple Purpose 9/08 at 101.00 AA 6,278,880
Projects, Series 2000K, 5.000%, 9/01/12
University of California, Revenue Bonds, Multi-Purpose
Projects, Series 2002O:
10,770 5.000%, 9/01/20 - FGIC Insured 9/10 at 101.00 AAA 11,480,282
11,305 5.000%, 9/01/21 - FGIC Insured 9/10 at 101.00 AAA 12,010,771
3,500 University of California, Revenue Bonds, Multi-Purpose Projects, 5/13 at 100.00 AAA 3,784,270
Series 2003A, 5.125%, 5/15/17 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
40,890 Total Education and Civic Organizations 43,485,131
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 7.2% (4.9% OF TOTAL INVESTMENTS)
2,160 California Health Facilities Financing Authority, Health 3/13 at 100.00 A 2,263,961
Facility Revenue Bonds, Adventist Health System/West,
Series 2003A, 5.000%, 3/01/15
1,990 California Health Facilities Financing Authority, Revenue Bonds, 11/15 at 100.00 A3 2,035,213
Cedars-Sinai Medical Center, Series 2005, 5.000%, 11/15/34
530 California Statewide Community Development Authority, 7/15 at 100.00 BBB+ 556,913
Revenue Bonds, Daughters of Charity Health System,
Series 2005A, 5.250%, 7/01/24
8,000 Central California Joint Powers Health Finance Authority, 2/10 at 101.00 Baa2 8,380,960
Certificates of Participation, Community Hospitals of Central
California Obligated Group, Series 2000, 6.000%, 2/01/30
10,500 Duarte, California, Certificates of Participation, City of Hope 4/09 at 101.00 BBB+ 10,675,140
National Medical Center, Series 1999A, 5.250%, 4/01/31
2,500 Whittier, California, Health Facility Revenue Bonds, 6/12 at 101.00 A 2,676,175
Presbyterian Intercommunity Hospital, Series 2002,
5.600%, 6/01/22
------------------------------------------------------------------------------------------------------------------------------------
25,680 Total Health Care 26,588,362
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 8.0% (5.5% OF TOTAL INVESTMENTS)
5,190 California Statewide Community Development Authority, 8/12 at 105.00 Aaa 5,810,880
GNMA Collateralized Housing Revenue Refunding Bonds,
Crowne Pointe Project, Series 2002F, 6.750%, 8/20/37
7,250 California Statewide Community Development Authority, 7/08 at 101.00 BBB 7,366,943
Revenue Refunding Bonds, Irvine Apartment Communities
Development, Series 1998A, 4.900%, 5/15/25 (Mandatory
put 5/15/08)
36
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY (continued)
$ 5,000 Contra Costa County, California, Multifamily Housing Revenue 6/09 at 102.00 N/R $ 5,263,550
Bonds, Delta View Apartments Project, Series 1999C,
6.750%, 12/01/30 (Alternative Minimum Tax)
1,725 Rohnert Park Finance Authority, California, Senior Lien Revenue 9/13 at 100.00 A- 1,887,150
Bonds, Rancho Feliz Mobile Home Park, Series 2003A,
5.750%, 9/15/38
1,120 Rohnert Park Finance Authority, California, Subordinate Lien 9/13 at 100.00 N/R 1,214,259
Revenue Bonds, Rancho Feliz Mobile Home Park,
Series 2003B, 6.625%, 9/15/38
7,500 San Bernardino County Housing Authority, California, 6/29 at 100.00 A- 7,775,250
Multifamily Housing Revenue Refunding Bonds, Equity
Residential Properties/Redlands Lawn and Tennis Apartments,
Series 1999A, 5.200%, 6/15/29 (Mandatory put 6/15/09)
------------------------------------------------------------------------------------------------------------------------------------
27,785 Total Housing/Multifamily 29,318,032
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.3% (1.7% OF TOTAL INVESTMENTS)
8,500 Riverside County Public Financing Authority, California, 5/09 at 101.00 BBB- 8,791,550
Certificates of Participation, Air Force Village West,
Series 1999, 5.800%, 5/15/29
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 21.4% (14.6% OF TOTAL INVESTMENTS)
California, General Obligation Bonds, Series 2003:
2,000 5.250%, 11/01/19 - RAAI Insured 11/13 at 100.00 AA 2,182,060
5,200 5.250%, 2/01/20 8/13 at 100.00 A 5,625,984
California, General Obligation Bonds, Series 2004:
5,000 5.125%, 4/01/23 4/14 at 100.00 A 5,326,650
4,150 5.125%, 4/01/25 4/14 at 100.00 A 4,400,660
2,000 California, General Obligation Bonds, Series 2005, 3/16 at 100.00 A 2,088,880
5.000%, 3/01/31
California, General Obligation Refunding Bonds, Series 2002:
8,000 5.000%, 2/01/12 No Opt. Call A 8,540,640
4,435 6.000%, 4/01/16 - AMBAC Insured No Opt. Call AAA 5,215,826
5,000 Fresno Unified School District, Fresno County, California, No Opt. Call AAA 6,229,750
General Obligation Bonds, Series 2002A, 6.000%, 8/01/26 -
MBIA Insured
2,335 Los Angeles Community College District, Los Angeles County, 8/15 at 100.00 AAA 2,489,390
California, General Obligation Bonds, Series 2005A,
5.000%, 6/01/26 - FSA Insured
10,845 Los Angeles Unified School District, California, General 7/12 at 100.00 AAA 11,606,427
Obligation Bonds, Series 2002E, 5.000%, 7/01/19 -
MBIA Insured
3,335 Moreno Valley Unified School District, Riverside County, 8/14 at 100.00 AAA 3,667,366
California, General Obligation Bonds, Series 2004A,
5.250%, 8/01/21 - FSA Insured
5,210 Oak Valley Hospital District, Stanislaus County, California, 7/14 at 101.00 Aaa 5,428,768
General Obligation Bonds, Series 2005, 5.000%, 7/01/35 -
FGIC Insured
1,750 Oakland Unified School District, Alameda County, California, 8/08 at 101.00 AAA 1,831,182
General Obligation Bonds, Series 2001, 5.125%, 8/01/21 -
FSA Insured
Oakland Unified School District, Alameda County, California,
General Obligation Bonds, Series 2005:
770 5.000%, 8/01/25 - MBIA Insured 8/15 at 100.00 AAA 819,057
810 5.000%, 8/01/26 - MBIA Insured 8/15 at 100.00 AAA 860,957
5,000 San Diego Unified School District, San Diego County, 7/13 at 101.00 AAA 5,510,200
California, General Obligation Bonds, Series 2003E,
5.250%, 7/01/20 - FSA Insured
San Jose-Evergreen Community College District, Santa Clara
County, California, General Obligation Bonds, Series 2005A:
600 5.000%, 9/01/25 - MBIA Insured 9/15 at 100.00 AAA 640,458
880 5.000%, 9/01/27 - MBIA Insured 9/15 at 100.00 AAA 936,496
1,300 Ventura County Community College District, California, 8/12 at 101.00 AAA 1,407,328
General Obligation Bonds, Series 2002A, 5.000%, 8/01/15 -
MBIA Insured
3,605 West Contra Costa Unified School District, Contra Costa County, 8/11 at 101.00 AAA 3,835,792
California, General Obligation Bonds, Series 2003B,
5.000%, 8/01/21 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
72,225 Total Tax Obligation/General 78,643,871
------------------------------------------------------------------------------------------------------------------------------------
37
Nuveen California Dividend Advantage Municipal Fund (NAC) (continued)
Portfolio of INVESTMENTS February 28, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 36.2% (24.7% OF TOTAL INVESTMENTS)
Beaumont Financing Authority, California, Local Agency Revenue
Bonds, Series 2004D:
$ 1,000 5.500%, 9/01/24 9/14 at 102.00 N/R $ 1,035,100
615 5.800%, 9/01/35 9/14 at 102.00 N/R 645,344
1,990 Brentwood Infrastructure Financing Authority, California, 9/12 at 100.00 AAA 2,096,803
Infrastructure Revenue Refunding Bonds, Series 2002A,
5.125%, 9/02/24 - FSA Insured
Brentwood Infrastructure Financing Authority, Contra Costa
County, California, Capital Improvement Revenue Bonds, Series 2001:
1,110 5.375%, 11/01/18 - FSA Insured 11/11 at 100.00 AAA 1,205,804
1,165 5.375%, 11/01/19 - FSA Insured 11/11 at 100.00 AAA 1,265,551
7,400 California, Economic Recovery Revenue Bonds, Series 2004A, 7/14 at 100.00 AA- 8,032,108
5.000%, 7/01/15
2,000 Capistrano Unified School District, Orange County, California, 9/13 at 100.00 N/R 2,119,420
Special Tax Bonds, Community Facilities District 90-2 -
Talega, Series 2003, 6.000%, 9/01/33
3,490 Fontana, California, Senior Special Tax Refunding Bonds, 9/08 at 102.00 AAA 3,705,682
Heritage Village Community Facilities District 2, Series 1998A,
5.250%, 9/01/17 - MBIA Insured
1,125 Fontana, California, Special Tax Bonds, Sierra Community 9/14 at 100.00 N/R 1,191,398
Facilities District 22, Series 2004, 6.000%, 9/01/34
3,980 Garden Grove, California, Certificates of Participation, 3/12 at 101.00 AAA 4,362,478
Financing Project, Series 2002A, 5.500%, 3/01/22 -
AMBAC Insured
540 Hesperia Community Redevelopment Agency, California, 9/15 at 100.00 AAA 576,850
Tax Allocation Bonds, Series 2005A, 5.000%, 9/01/20 -
XLCA Insured
4,500 Inglewood Redevelopment Agency, California, Tax Allocation No Opt. Call AAA 5,078,475
Refunding Bonds, Merged Area Redevelopment Project,
Series 1998A, 5.250%, 5/01/23 - AMBAC Insured
2,000 Lee Lake Water District, Riverside County, California, Special 9/13 at 102.00 N/R 2,218,140
Tax Bonds, Community Facilities District 1 of Sycamore
Creek, Series 2003, 6.500%, 9/01/24
2,200 Lincoln, California, Special Tax Bonds, Lincoln Crossing 9/13 at 102.00 N/R 2,422,464
Community Facilities District 03-1, Series 2003A,
6.500%, 9/01/25
1,500 Lincoln, California, Special Tax Bonds, Lincoln Crossing 9/13 at 102.00 N/R 1,608,300
Community Facilities District 03-1, Series 2004,
6.000%, 9/01/34
5,000 Los Angeles County Metropolitan Transportation Authority, 7/08 at 101.00 AAA 5,205,050
California, Proposition C Second Senior Lien Sales Tax
Revenue Refunding Bonds, Series 1998A, 5.000%, 7/01/23 -
AMBAC Insured
3,555 Los Angeles County Public Works Financing Authority, 10/07 at 101.00 AA 3,674,590
California, Revenue Bonds, Regional Park and Open Space
District, Series 1997A, 5.000%, 10/01/16
1,530 Moreno Valley Unified School District, Riverside County, 3/14 at 100.00 AAA 1,614,104
California, Certificates of Participation, Series 2005,
5.000%, 3/01/24 - FSA Insured
9,200 Norco Redevelopment Agency, California, Tax Allocation 3/11 at 102.00 AAA 9,748,780
Refunding Bonds, Project Area 1, Series 2001,
5.000%, 3/01/19 - MBIA Insured
5,545 Oakland Joint Power Financing Authority, California, Lease No Opt. Call AAA 6,258,420
Revenue Refunding Bonds, Oakland Convention Centers,
Series 2001, 5.500%, 10/01/14 - AMBAC Insured
3,290 Oakland Redevelopment Agency, California, Subordinate 3/13 at 100.00 AAA 3,651,999
Lien Tax Allocation Bonds, Central District Redevelopment
Project, Series 2003, 5.500%, 9/01/16 - FGIC Insured
3,800 Orange County Local Transportation Authority, California, No Opt. Call AAA 3,972,938
Limited Sales Tax Revenue Refunding Bonds, Measure M,
Series 1997A, 5.700%, 2/15/08 - AMBAC Insured
5,600 Palm Springs Financing Authority, California, Lease Revenue 11/11 at 101.00 AAA 5,895,568
Refunding Bonds, Convention Center Project, Series 2001A,
5.000%, 11/01/22 - MBIA Insured
1,000 Palmdale Community Redevelopment Agency, California, 12/14 at 100.00 AAA 1,059,180
Tax Allocation Bonds, Merged Redevelopment Project Areas,
Series 2004, 5.000%, 12/01/24 - AMBAC Insured
1,055 Poway Redevelopment Agency, California, Tax Allocation 12/11 at 101.00 AAA 1,158,211
Bonds, Paguay Redevelopment Project, Series 2001,
5.375%, 12/15/16 - AMBAC Insured
8,100 Poway Redevelopment Agency, California, Tax Allocation 12/10 at 102.00 AAA 8,989,785
Refunding Bonds, Paguay Redevelopment Project,
Series 2000, 5.750%, 6/15/33 - MBIA Insured
620 Rialto Redevelopment Agency, California, Tax Allocation 9/15 at 100.00 AAA 645,470
Bonds, Merged Project Area, Series 2005A, 5.000%, 9/01/35 -
XLCA Insured
38
Nuveen California Dividend Advantage Municipal Fund (NAC) (continued)
Portfolio of INVESTMENTS February 28, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,290 Riverside County Public Financing Authority, California, 10/15 at 100.00 AAA $ 1,343,316
Tax Allocation Bonds, Multiple Projects, Series 2005A,
5.000%, 10/01/35 - XLCA Insured
1,860 Riverside Redevelopment Agency, California, Tax Allocation 8/13 at 100.00 AAA 2,012,371
Refunding Bonds, Merged Project Areas, Series 2003,
5.250%, 8/01/22 - MBIA Insured
2,500 Sacramento City Financing Authority, California, Lease Revenue No Opt. Call AAA 2,857,050
Refunding Bonds, Series 1993A, 5.400%, 11/01/20 -
AMBAC Insured
1,150 Sacramento, California, Special Tax Bonds, North Natomas 9/14 at 100.00 N/R 1,234,214
Community Facilities District 4, Series 2003C, 6.000%, 9/01/33
2,695 San Jose Financing Authority, California, Lease Revenue 6/12 at 100.00 AAA 2,919,251
Refunding Bonds, Civic Center Project, Series 2002B,
5.250%, 6/01/19 - AMBAC Insured
24,060 San Jose Redevelopment Agency, California, Tax Allocation 8/08 at 102.00 A 24,834,251
Bonds, Merged Area Redevelopment Project, Series 1998,
5.250%, 8/01/29
1,595 San Marcos Public Facilities Authority, California, 9/09 at 102.00 N/R 1,677,047
Special Tax Bonds, Community Facilities District 99-1,
Series 2003B, 6.000%, 9/01/24
2,810 West Patterson Financing Authority, California, Special 9/13 at 103.00 N/R 3,173,726
Tax Bonds, Community Facilities District 01-1,
Series 2003B, 7.000%, 9/01/38
2,000 West Patterson Financing Authority, California, Special 9/13 at 102.00 N/R 2,118,060
Tax Bonds, Community Facilities District 01-1, Series 2004B,
6.000%, 9/01/39
1,350 West Patterson Financing Authority, California, Special 9/13 at 103.00 N/R 1,451,250
Tax Bonds, Community Facilities District 2001-1,
Series 2004A, 6.125%, 9/01/39
------------------------------------------------------------------------------------------------------------------------------------
124,220 Total Tax Obligation/Limited 133,058,548
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 18.3% (12.5% OF TOTAL INVESTMENTS)
8,150 Foothill/Eastern Transportation Corridor Agency, California, 1/10 at 101.00 BBB- 8,408,111
Toll Road Revenue Refunding Bonds, Series 1999,
5.750%, 1/15/40
8,515 Los Angeles Harbors Department, California, Revenue 8/11 at 100.00 AAA 9,138,553
Refunding Bonds, Series 2001B, 5.500%, 8/01/18 -
AMBAC Insured (Alternative Minimum Tax)
23,000 Port of Oakland, California, Revenue Bonds, Series 2000K, 5/10 at 100.00 AAA 24,591,370
5.750%, 11/01/29 - FGIC Insured (Alternative Minimum Tax)
23,275 San Francisco Airports Commission, California, Revenue 5/10 at 101.00 AAA 25,083,233
Bonds, San Francisco International Airport, Second
Series 2000, Issue 24A, 5.750%, 5/01/30 - FSA Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
62,940 Total Transportation 67,221,267
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 25.4% (17.3% OF TOTAL INVESTMENTS) (4)
California Department of Water Resources, Power Supply
Revenue Bonds, Series 2002A:
2,500 5.375%, 5/01/17 (Pre-refunded 5/01/12) - XLCA Insured 5/12 at 101.00 AAA 2,769,825
9,750 5.125%, 5/01/18 (Pre-refunded 5/01/12) 5/12 at 101.00 A2 (4) 10,668,255
15,000 California Health Facilities Financing Authority, Revenue Bonds, 12/09 at 101.00 A3 (4) 16,571,400
Cedars-Sinai Medical Center, Series 1999A, 6.125%, 12/01/30
(Pre-refunded 12/01/09)
8,400 California Health Facilities Financing Authority, Revenue 10/08 at 101.00 AAA 8,843,016
Bonds, Kaiser Permanente System, Series 1998B,
5.250%, 10/01/14 (ETM)
5,000 California Statewide Community Development Authority, 11/09 at 102.00 N/R (4) 5,770,000
Certificates of Participation, Pride Industries and Pride
One Inc., Series 1999, 7.250%, 11/01/29 (Pre-refunded 11/01/09)
17,400 Los Angeles Unified School District, California, General 7/09 at 101.00 AAA 18,634,704
Obligation Bonds, Series 1999C, 5.250%, 7/01/24
(Pre-refunded 7/01/09) - MBIA Insured
Northern California Tobacco Securitization Authority, Tobacco
Settlement Asset-Backed Bonds, Series 2001A:
2,500 5.250%, 6/01/31 (Pre-refunded 6/01/11) 6/11 at 100.00 Aaa 2,701,850
4,500 5.375%, 6/01/41 (Pre-refunded 6/01/11) 6/11 at 100.00 Aaa 4,890,060
5,840 Orange County Water District, California, Revenue Certificates 8/09 at 101.00 AA+ (4) 6,443,214
of Participation, Series 1999A, 5.375%, 8/15/29 (ETM)
8,160 Orange County Water District, California, Revenue Certificates 8/09 at 101.00 AA+ (4) 8,791,013
of Participation, Series 1999A, 5.375%, 8/15/29
(Pre-refunded 8/15/09)
39
Nuveen California Dividend Advantage Municipal Fund (NAC) (continued)
Portfolio of INVESTMENTS February 28, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 4,000 Puerto Rico, General Obligation and Public Improvement 7/10 at 100.00 AAA $ 4,358,560
Bonds, Series 2000, 5.750%, 7/01/16 (Pre-refunded 7/01/10) -
MBIA Insured
2,560 Southwestern Community College District, San Diego County, 8/14 at 100.00 AAA 2,805,146
California, General Obligation Bonds, Series 2004,
5.000%, 8/01/23 (Pre-refunded 8/01/14) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
85,610 Total U.S. Guaranteed 93,247,043
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 6.3% (4.3% OF TOTAL INVESTMENTS)
3,630 Imperial Irrigation District, California, Certificates of 11/13 at 100.00 AAA 3,915,935
Participation, Electric System Revenue Bonds, Series 2003,
5.250%, 11/01/23 - FSA Insured
7,000 Los Angeles Department of Water and Power, California, 7/11 at 100.00 AAA 7,482,650
Power System Revenue Bonds, Series 2001A-1,
5.250%, 7/01/21 - FSA Insured
8,370 Los Angeles Department of Water and Power, California, 7/11 at 100.00 AAA 9,037,173
Power System Revenue Bonds, Series 2001A-2,
5.375%, 7/01/19 - MBIA Insured
1,200 Los Angeles Department of Water and Power, California, 7/13 at 100.00 AAA 1,277,196
Power System Revenue Bonds, Series 2003A-2,
5.000%, 7/01/21 - MBIA Insured
1,270 Merced Irrigation District, California, Electric System Revenue 9/15 at 100.00 AAA 1,341,412
Bonds, Series 2005, 5.125%, 9/01/31 - XLCA Insured
------------------------------------------------------------------------------------------------------------------------------------
21,470 Total Utilities 23,054,366
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 6.6% (4.5% OF TOTAL INVESTMENTS)
9,165 California Department of Water Resources, Water System 12/11 at 100.00 AAA 9,862,182
Revenue Bonds, Central Valley Project, Series 2001W,
5.250%, 12/01/22 - FSA Insured
8,250 Pico Rivera Water Authority, California, Revenue Bonds, 12/11 at 102.00 N/R 8,843,092
Series 2001A, 6.250%, 12/01/32
5,115 San Francisco City and County Public Utilities Commission, 11/12 at 100.00 AAA 5,490,748
California, Water Revenue Bonds, Series 2002A,
5.000%, 11/01/18 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
22,530 Total Water and Sewer 24,196,022
------------------------------------------------------------------------------------------------------------------------------------
$ 501,415 Total Investments (cost $504,598,945) - 146.2% 537,687,449
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.4% 5,144,526
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (47.6)% (175,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 367,831,975
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices
of the earliest optional call or redemption. There may be
other call provisions at varying prices at later dates.
Certain mortgage-backed securities may be subject to
periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's or Moody's
rating. Ratings below BBB by Standard & Poor's Group or Baa
by Moody's Investor Service, Inc. are considered to be below
investment grade.
(4) Investment is backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensure the timely payment of principal and
interest. Such investments are normally considered to be
equivalent to AAA rated securities.
N/R Investment is not rated.
(ETM) Investment is escrowed to maturity.
See accompanying notes to financial statements.
40
Nuveen California Dividend Advantage Municipal Fund 2 (NVX)
Portfolio of
INVESTMENTS February 28, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 5.2% (3.6% OF TOTAL INVESTMENTS)
$ 825 California County Tobacco Securitization Agency, Tobacco 6/15 at 100.00 BBB $ 801,034
Settlement Asset-Backed Bonds, Sonoma County Tobacco
Securitization Corporation, Series 2005, 4.250%, 6/01/21
4,625 California County Tobacco Securitization Agency, 6/12 at 100.00 Baa3 4,741,319
Tobacco Settlement Asset-Backed Bonds, Stanislaus
County Tobacco Funding Corporation, Series 2002A,
5.500%, 6/01/33
3,200 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB 3,504,864
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.250%, 6/01/33
2,800 Tobacco Securitization Authority of Southern California, 6/12 at 100.00 BBB 2,862,888
Tobacco Settlement Asset-Backed Bonds, San Diego County
Tobacco Asset Securitization Corporation, Senior Series 2001A,
5.500%, 6/01/36
------------------------------------------------------------------------------------------------------------------------------------
11,450 Total Consumer Staples 11,910,105
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 14.8% (10.1% OF TOTAL INVESTMENTS)
2,000 California Educational Facilities Authority, Revenue Bonds, 6/11 at 101.00 AAA 2,125,580
Stanford University, Series 2001Q, 5.250%, 12/01/32
6,375 California Educational Facilities Authority, Student Loan 3/08 at 102.00 Aaa 6,648,934
Revenue Bonds, Cal Loan Program, Series 2001A,
5.400%, 3/01/21 - MBIA Insured (Alternative Minimum Tax)
California State Public Works Board, Lease Revenue Bonds,
University of California, UCLA Replacement Hospital Project,
Series 2002A:
8,880 5.375%, 10/01/16 - FSA Insured 10/12 at 100.00 AAA 9,722,002
10,570 5.375%, 10/01/18 - FSA Insured 10/12 at 100.00 AAA 11,516,225
620 California Statewide Community Development Authority, 10/13 at 100.00 N/R 640,355
Revenue Bonds, Notre Dame de Namur University,
Series 2003, 6.500%, 10/01/23
3,000 Long Beach Bond Financing Authority, California, Lease 11/11 at 101.00 AAA 3,181,890
Revenue Refunding Bonds, Long Beach Aquarium of the
South Pacific, Series 2001, 5.250%, 11/01/30 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
31,445 Total Education and Civic Organizations 33,834,986
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 9.2% (6.2% OF TOTAL INVESTMENTS)
2,000 California Health Facilities Financing Authority, Revenue Bonds, 4/12 at 100.00 BBB+ 2,151,040
Casa Colina Inc., Series 2001, 6.000%, 4/01/22
1,240 California Health Facilities Financing Authority, Revenue Bonds, 11/15 at 100.00 A3 1,268,173
Cedars-Sinai Medical Center, Series 2005, 5.000%, 11/15/34
500 California Infrastructure Economic Development Bank, Revenue 8/11 at 102.00 A+ 532,680
Bonds, Kaiser Hospital Assistance LLC, Series 2001A,
5.550%, 8/01/31
955 California State Public Works Board, Revenue Bonds, 11/14 at 100.00 AAA 1,011,794
University of California - Davis Medical Center,
Series 2004II-A, 5.000%, 11/01/22 - MBIA Insured
2,185 California Statewide Community Development Authority, No Opt. Call A+ 2,414,010
Health Facility Revenue Refunding Bonds, Memorial Health
Services, Series 2003A, 6.000%, 10/01/11
2,500 California Statewide Community Development Authority, 6/13 at 100.00 AAA 2,699,100
Hospital Revenue Bonds, Monterey Peninsula Hospital,
Series 2003B, 5.250%, 6/01/18 - FSA Insured
California Statewide Community Development Authority,
Revenue Bonds, Daughters of Charity Health System,
Series 2005A:
330 5.250%, 7/01/24 7/15 at 100.00 BBB+ 346,757
190 5.250%, 7/01/35 7/15 at 100.00 BBB+ 197,306
5,355 California Statewide Community Development Authority, 11/36 at 100.00 A+ 5,490,696
Revenue Bonds, Kaiser Permanente System, Series 2002E,
4.700%, 11/01/36 (Mandatory put 6/01/09)
3,000 Central California Joint Powers Health Finance Authority, 2/10 at 101.00 Baa2 3,142,860
Certificates of Participation, Community Hospitals of Central
California Obligated Group, Series 2000, 6.000%, 2/01/30
41
Nuveen California Dividend Advantage Municipal Fund 2 (NVX) (continued)
Portfolio of INVESTMENTS February 28, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 1,500 Whittier, California, Health Facility Revenue Bonds, 6/12 at 101.00 A $ 1,605,705
Presbyterian Intercommunity Hospital, Series 2002,
5.600%, 6/01/22
------------------------------------------------------------------------------------------------------------------------------------
19,755 Total Health Care 20,860,121
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 11.4% (7.8% OF TOTAL INVESTMENTS)
2,450 ABAG Finance Authority for Non-Profit Corporations, 8/30 at 100.00 BBB 2,563,019
California, Multifamily Housing Revenue Refunding Bonds,
United Dominion/2000 Post Apartments, Series 2000B,
6.250%, 8/15/30 (Mandatory put 8/15/08)
3,460 California Statewide Community Development Authority, 8/12 at 105.00 Aaa 3,873,920
GNMA Collateralized Housing Revenue Refunding Bonds,
Crowne Pointe Project, Series 2002F, 6.750%, 8/20/37
5,962 California Statewide Community Development Authority, 6/11 at 102.00 AAA 6,474,911
Multifamily Housing Revenue Refunding Bonds, Claremont
Village Apartments, Series 2001D, 5.500%, 6/01/31
(Mandatory put 6/01/16) (Alternative Minimum Tax)
3,250 California Statewide Community Development Authority, 7/08 at 101.00 BBB 3,302,423
Revenue Refunding Bonds, Irvine Apartment Communities
Development, Series 1998A, 4.900%, 5/15/25 (Mandatory
put 5/15/08)
4,000 Daly City Housing Development Finance Agency, California, 12/13 at 102.00 A- 4,431,800
Mobile Home Park Revenue Bonds, Franciscan Mobile Home
Park Project, Series 2002A, 5.850%, 12/15/32
1,055 Rohnert Park Finance Authority, California, Senior Lien Revenue 9/13 at 100.00 A- 1,154,170
Bonds, Rancho Feliz Mobile Home Park, Series 2003A,
5.750%, 9/15/38
700 Rohnert Park Finance Authority, California, Subordinate Lien 9/13 at 100.00 N/R 758,912
Revenue Bonds, Rancho Feliz Mobile Home Park,
Series 2003B, 6.625%, 9/15/38
3,045 Yucaipa Redevelopment Agency, California, Mobile Home 5/11 at 102.00 N/R 3,440,972
Park Revenue Bonds, Rancho del Sol and Grandview,
Series 2001A, 6.750%, 5/15/36
------------------------------------------------------------------------------------------------------------------------------------
23,922 Total Housing/Multifamily 26,000,127
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.5% (0.3% OF TOTAL INVESTMENTS)
960 California Rural Home Mortgage Finance Authority, 6/11 at 102.00 AAA 965,184
Mortgage-Backed Securities Program Single Family
Mortgage Revenue Bonds, Series 2001A, 5.650%, 12/01/31
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 0.7% (0.5% OF TOTAL INVESTMENTS)
1,550 California Health Facilities Financing Authority, 1/13 at 100.00 A 1,622,664
Cal-Mortgage Insured Revenue Bonds, Northern California
Retired Officers Community Corporation - Paradise Valley
Estates, Series 2002, 5.125%, 1/01/22
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 23.8% (16.2% OF TOTAL INVESTMENTS)
California, General Obligation Bonds, Series 2003:
3,000 5.250%, 2/01/20 8/13 at 100.00 A 3,245,760
1,400 5.250%, 2/01/21 8/13 at 100.00 A 1,514,688
1,350 California, General Obligation Bonds, Series 2004, 4/14 at 100.00 A 1,431,540
5.125%, 4/01/25
5,000 California, General Obligation Refunding Bonds, Series 2002, No Opt. Call A 5,337,900
5.000%, 2/01/12
4,225 California, General Obligation Veterans Welfare Bonds, 6/06 at 101.00 AAA 4,288,291
Series 2001BV, 5.600%, 12/01/32 - FSA Insured
3,615 Colton Joint Unified School District, San Bernardino County, 8/12 at 102.00 AAA 4,014,711
California, General Obligation Bonds, Series 2002A,
5.500%, 8/01/22 - FGIC Insured
Contra Costa County Community College District, California,
General Obligation Bonds, Series 2002:
3,005 5.000%, 8/01/21 - FGIC Insured 8/12 at 100.00 AAA 3,197,861
3,300 5.000%, 8/01/22 - FGIC Insured 8/12 at 100.00 AAA 3,511,794
1,325 Golden West Schools Financing Authority, California, No Opt. Call AAA 1,583,349
General Obligation Revenue Refunding Bonds, School
District Program, Series 1998A, 6.650%, 8/01/13 -
MBIA Insured
1,445 Los Angeles Community College District, Los Angeles County, 8/15 at 100.00 AAA 1,540,543
California, General Obligation Bonds, Series 2005A,
5.000%, 6/01/26 - FSA Insured
10,840 Los Angeles Unified School District, California, General 7/12 at 100.00 AAA 11,601,075
Obligation Bonds, Series 2002E, 5.000%, 7/01/19 -
MBIA Insured
42
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 1,250 Los Angeles Unified School District, California, General 7/13 at 100.00 AAA $ 1,364,688
Obligation Bonds, Series 2003A, 5.250%, 7/01/20 -
FSA Insured
1,375 Lucia Mar Unified School District, San Luis Obispo County, 8/14 at 100.00 Aaa 1,512,032
California, General Obligation Bonds, Series 2004A,
5.250%, 8/01/21 - FGIC Insured
Oakland Unified School District, Alameda County, California,
General Obligation Bonds, Series 2005:
475 5.000%, 8/01/25 - MBIA Insured 8/15 at 100.00 AAA 505,262
500 5.000%, 8/01/26 - MBIA Insured 8/15 at 100.00 AAA 531,455
2,000 Puerto Rico, General Obligation and Public Improvement No Opt. Call AAA 2,328,460
Bonds, Series 2001A, 5.500%, 7/01/20 - MBIA Insured
San Jose-Evergreen Community College District, Santa Clara
County, California, General Obligation Bonds, Series 2005A:
370 5.000%, 9/01/25 - MBIA Insured 9/15 at 100.00 AAA 394,949
545 5.000%, 9/01/27 - MBIA Insured 9/15 at 100.00 AAA 579,989
4,050 Santa Rosa High School District, Sonoma County, California, 5/11 at 101.00 AAA 4,352,251
General Obligation Bonds, Series 2001, 5.300%, 5/01/26 -
FGIC Insured
1,160 Saugus Union School District, Los Angeles County, California, 8/12 at 100.00 AAA 1,234,449
General Obligation Bonds, Series 2002A, 5.000%, 8/01/21 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
50,230 Total Tax Obligation/General 54,071,047
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 28.6% (19.5% OF TOTAL INVESTMENTS)
Beaumont Financing Authority, California, Local Agency Revenue
Bonds, Series 2004D:
650 5.500%, 9/01/24 9/14 at 102.00 N/R 672,815
385 5.800%, 9/01/35 9/14 at 102.00 N/R 403,996
4,900 California State Public Works Board, Lease Revenue Bonds, 12/13 at 100.00 A- 5,415,725
Department of Corrections, Series 2003C, 5.500%, 6/01/16
4,000 California, Economic Recovery Revenue Bonds, Series 2004A, 7/14 at 100.00 AA- 4,341,680
5.000%, 7/01/15
1,200 Capistrano Unified School District, Orange County, California, 9/13 at 100.00 N/R 1,271,652
Special Tax Bonds, Community Facilities District 90-2 - Talega,
Series 2003, 6.000%, 9/01/33
4,845 Encinitas Public Financing Authority, California, Lease Revenue 4/08 at 102.00 AAA 5,086,426
Bonds, Acquisition Project, Series 2001A, 5.250%, 4/01/31 -
MBIA Insured
750 Fontana, California, Special Tax Bonds, Sierra Community 9/14 at 100.00 N/R 794,265
Facilities District 22, Series 2004, 6.000%, 9/01/34
335 Hesperia Community Redevelopment Agency, California, 9/15 at 100.00 AAA 357,860
Tax Allocation Bonds, Series 2005A, 5.000%, 9/01/20 -
XLCA Insured
4,000 Industry Urban Development Agency, California, Tax Allocation 5/07 at 101.50 AAA 4,156,480
Refunding Bonds, Civic, Recreational and Industrial
Redevelopment Project 1, Series 2002, 5.500%, 5/01/19 -
MBIA Insured
2,000 Lake Elsinore Public Finance Authority, California, Local Agency 10/13 at 102.00 N/R 2,185,020
Revenue Refunding Bonds, Series 2003H, 6.000%, 10/01/20
1,265 Lee Lake Water District, Riverside County, California, Special 9/13 at 102.00 N/R 1,402,974
Tax Bonds, Community Facilities District 1 of Sycamore Creek,
Series 2003, 6.500%, 9/01/24
1,320 Lincoln, California, Special Tax Bonds, Lincoln Crossing 9/13 at 102.00 N/R 1,453,478
Community Facilities District 03-1, Series 2003A,
6.500%, 9/01/25
1,000 Lincoln, California, Special Tax Bonds, Lincoln Crossing 9/13 at 102.00 N/R 1,072,200
Community Facilities District 03-1, Series 2004,
6.000%, 9/01/34
8,000 Los Angeles County Metropolitan Transportation Authority, 7/08 at 101.00 AAA 8,328,080
California, Proposition C Second Senior Lien Sales Tax
Revenue Refunding Bonds, Series 1998A, 5.000%, 7/01/23 -
AMBAC Insured
5,000 Los Angeles County Metropolitan Transportation Authority, No Opt. Call AAA 5,536,350
California, Proposition C Second Senior Lien Sales Tax
Revenue Refunding Bonds, Series 2003A, 5.250%, 7/01/13 -
MBIA Insured
3,295 Oakland Redevelopment Agency, California, Subordinate 3/13 at 100.00 AAA 3,657,549
Lien Tax Allocation Bonds, Central District Redevelopment
Project, Series 2003, 5.500%, 9/01/16 - FGIC Insured
43
Nuveen California Dividend Advantage Municipal Fund 2 (NVX) (continued)
Portfolio of INVESTMENTS February 28, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 2,000 Orange County, California, Special Tax Bonds, Community 8/11 at 101.00 N/R $ 2,050,640
Facilities District 02-1 of Ladera Ranch, Series 2003A,
5.550%, 8/15/33
2,000 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call BBB- 2,411,500
Appropriation Bonds, Series 2002E, 6.000%, 8/01/26
385 Rialto Redevelopment Agency, California, Tax Allocation 9/15 at 100.00 AAA 400,816
Bonds, Merged Project Area, Series 2005A, 5.000%, 9/01/35 -
XLCA Insured
800 Riverside County Public Financing Authority, California, 10/15 at 100.00 AAA 833,064
Tax Allocation Bonds, Multiple Projects, Series 2005A,
5.000%, 10/01/35 - XLCA Insured
6,000 Riverside County Redevelopment Agency, California, 10/11 at 102.00 AAA 6,413,700
Tax Allocation Bonds, Jurupa Valley Project Area,
Series 2001, 5.250%, 10/01/35 - AMBAC Insured
700 Sacramento, California, Special Tax Bonds, North Natomas 9/14 at 100.00 N/R 751,261
Community Facilities District 4, Series 2003C,
6.000%, 9/01/33
975 San Marcos Public Facilities Authority, California, Special 9/09 at 102.00 N/R 1,025,154
Tax Bonds, Community Facilities District 99-1, Series 2003B,
6.000%, 9/01/24
1,530 San Marcos Public Facilities Authority, California, Tax Allocation 8/15 at 100.00 AAA 1,603,165
Bonds, Project Areas 2 and 3, Series 2005C, 5.000%, 8/01/35 -
AMBAC Insured
1,930 West Patterson Financing Authority, California, Special 9/13 at 103.00 N/R 2,161,098
Tax Bonds, Community Facilities District 01-1, Series 2003B,
6.750%, 9/01/30
500 West Patterson Financing Authority, California, Special 9/13 at 102.00 N/R 529,515
Tax Bonds, Community Facilities District 01-1, Series 2004B,
6.000%, 9/01/39
850 West Patterson Financing Authority, California, Special 9/13 at 103.00 N/R 913,750
Tax Bonds, Community Facilities District 2001-1, Series 2004A,
6.125%, 9/01/39
------------------------------------------------------------------------------------------------------------------------------------
60,615 Total Tax Obligation/Limited 65,230,213
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 9.0% (6.1% OF TOTAL INVESTMENTS)
7,000 Foothill/Eastern Transportation Corridor Agency, California, 1/14 at 101.00 BBB- 6,146,490
Toll Road Revenue Refunding Bonds, Series 1999,
0.000%, 1/15/27
5,585 Port of Oakland, California, Revenue Bonds, Series 2002N, 11/12 at 100.00 AAA 5,877,263
5.000%, 11/01/16 - MBIA Insured (Alternative Minimum Tax)
San Francisco Airports Commission, California, Revenue Bonds,
San Francisco International Airport, Second Series 2003, Issue
29A:
2,430 5.250%, 5/01/18 - FGIC Insured (Alternative Minimum Tax) 5/13 at 100.00 AAA 2,590,380
2,555 5.250%, 5/01/19 - FGIC Insured (Alternative Minimum Tax) 5/13 at 100.00 AAA 2,718,750
1,000 San Francisco Airports Commission, California, Revenue Bonds, 5/13 at 100.00 AAA 1,073,700
San Francisco International Airport, Second Series 2003,
Issue 29B, 5.125%, 5/01/17 - FGIC Insured
2,000 San Francisco Airports Commission, California, Revenue 5/12 at 100.00 AAA 2,118,080
Refunding Bonds, San Francisco International Airport,
Second Series 2002, Issue 28A, 5.250%, 5/01/17 -
MBIA Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
20,570 Total Transportation 20,524,663
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 24.8% (17.0% OF TOTAL INVESTMENTS) (4)
9,000 Anitoch Area Public Facilities Financing Agency, California, 8/11 at 100.00 AAA 9,777,419
Special Tax Bonds, Community Facilities District 1989-1,
Series 2001, 5.250%, 8/01/25 (Pre-refunded 8/01/11) -
MBIA Insured
6,000 California Department of Water Resources, Power Supply 5/12 at 101.00 Aaa 6,565,080
Revenue Bonds, Series 2002A, 5.125%, 5/01/18
(Pre-refunded 5/01/12)
8,230 Los Angeles Unified School District, California, General 7/10 at 100.00 AAA 8,909,963
Obligation Bonds, Series 2000D, 5.375%, 7/01/25
(Pre-refunded 7/01/10) - FGIC Insured
3,000 Northern California Tobacco Securitization Authority, 6/11 at 100.00 Aaa 3,260,040
Tobacco Settlement Asset-Backed Bonds, Series 2001A,
5.375%, 6/01/41 (Pre-refunded 6/01/11)
Santa Clara Valley Transportation Authority, California, Sales
Tax Revenue Bonds, Series 2001A:
15,090 5.000%, 6/01/25 (Pre-refunded 6/01/11) - MBIA Insured 6/11 at 100.00 AAA 16,181,157
2,000 5.000%, 6/01/26 (Pre-refunded 6/01/11) - MBIA Insured 6/11 at 100.00 AAA 2,144,620
44
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 6,200 Southwestern Community College District, San Diego County, 8/11 at 101.00 AAA $ 6,824,960
California, General Obligation Bonds, Series 2001,
5.375%, 8/01/25 (Pre-refunded 8/01/11) - AMBAC Insured
2,710 Southwestern Community College District, San Diego County, 8/14 at 100.00 AAA 2,969,510
California, General Obligation Bonds, Series 2004,
5.000%, 8/01/21 (Pre-refunded 8/01/14) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
52,230 Total U.S. Guaranteed 56,632,749
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 4.5% (3.1% OF TOTAL INVESTMENTS)
5,000 Anaheim Public Finance Authority, California, Second Lien 10/14 at 100.00 AAA 5,448,550
Electric Distribution Revenue Bonds, Series 2004,
5.250%, 10/01/21 - MBIA Insured
Los Angeles Department of Water and Power, California, Power
System Revenue Bonds, Series 2003A-2:
750 5.000%, 7/01/21 - MBIA Insured 7/13 at 100.00 AAA 798,248
1,000 5.000%, 7/01/23 - MBIA Insured 7/13 at 100.00 AAA 1,063,480
790 Merced Irrigation District, California, Electric System Revenue 9/15 at 100.00 AAA 834,422
Bonds, Series 2005, 5.125%, 9/01/31 - XLCA Insured
2,000 Santa Clara, California, Subordinate Electric Revenue Bonds, 7/13 at 100.00 AAA 2,180,820
Series 2003A, 5.250%, 7/01/20 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
9,540 Total Utilities 10,325,520
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 13.5% (9.2% OF TOTAL INVESTMENTS)
2,740 California Department of Water Resources, Water System 12/12 at 100.00 AAA 2,943,500
Revenue Bonds, Central Valley Project, Series 2002Z,
5.000%, 12/01/18 - FGIC Insured
4,900 East Bay Municipal Utility District, Alameda and Contra 6/11 at 100.00 AAA 5,093,452
Costa Counties, California, Water System Subordinated
Revenue Bonds, Series 2001, 5.000%, 6/01/26 - MBIA Insured
2,655 El Dorado Irrigation District, California, Water and Sewer 3/14 at 100.00 AAA 2,825,106
Certificates of Participation, Series 2004A, 5.000%, 3/01/20 -
FGIC Insured
1,700 San Buenaventura, California, Wastewater Revenue 3/14 at 100.00 AAA 1,793,449
Certificates of Participation, Series 2004, 5.000%, 3/01/24 -
MBIA Insured
6,885 San Diego Public Facilities Financing Authority, California, 8/12 at 100.00 AAA 7,326,879
Subordinate Lien Water Revenue Bonds, Series 2002,
5.000%, 8/01/21 - MBIA Insured
10,000 San Francisco City and County Public Utilities Commission, 4/13 at 100.00 AAA 10,890,399
California, Clean Water Revenue Refunding Bonds,
Series 2003A, 5.250%, 10/01/20 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
28,880 Total Water and Sewer 30,872,785
------------------------------------------------------------------------------------------------------------------------------------
$ 311,147 Total Long-Term Investments (cost $314,751,642) - 146.0% 332,850,164
=============-----------------------------------------------------------------------------------------------------------------------
45
Nuveen California Dividend Advantage Municipal Fund 2 (NVX) (continued)
Portfolio of INVESTMENTS February 28, 2006 (Unaudited)
PRINCIPAL
AMOUNT (000) DESCRIPTION (1) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.5% (0.4% OF TOTAL INVESTMENTS)
$ 1,200 California Department of Water Resources, Power Supply VMIG-1 $ 1,200,000
Revenue Bonds, Variable Rate Demand Obligations,
Series 2002C-7, 3.150%, 5/01/22 - FSA Insured (5)
------------------------------------------------------------------------------------------------------------------------------------
$ 1,200 Total Short-Term Investments (cost $1,200,000) 1,200,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $315,951,642) - 146.5% 334,050,164
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.8% 3,897,470
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (48.3)% (110,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 227,947,634
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices
of the earliest optional call or redemption. There may be
other call provisions at varying prices at later dates.
Certain mortgage-backed securities may be subject to
periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's or Moody's
rating. Ratings below BBB by Standard & Poor's Group or Baa
by Moody's Investor Service, Inc. are considered to be below
investment grade.
(4) Investment is backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensure the timely payment of principal and
interest.
(5) Investment has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term investment. The rate disclosed is that in effect
at the end of the reporting period. This rate changes
periodically based on market conditions or a specified
market index.
N/R Investment is not rated.
See accompanying notes to financial statements.
46
Nuveen California Dividend Advantage Municipal Fund 3 (NZH)
Portfolio of
INVESTMENTS February 28, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 3.4% (2.2% OF TOTAL INVESTMENTS)
$ 1,340 California County Tobacco Securitization Agency, Tobacco 6/15 at 100.00 BBB $ 1,301,073
Settlement Asset-Backed Bonds, Sonoma County Tobacco
Securitization Corporation, Series 2005, 4.250%, 6/01/21
6,100 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB 6,681,147
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.250%, 6/01/33
4,200 Tobacco Securitization Authority of Southern California, 6/12 at 100.00 BBB 4,294,332
Tobacco Settlement Asset-Backed Bonds, San Diego County
Tobacco Asset Securitization Corporation, Senior Series 2001A,
5.500%, 6/01/36
------------------------------------------------------------------------------------------------------------------------------------
11,640 Total Consumer Staples 12,276,552
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 7.6% (5.1% OF TOTAL INVESTMENTS)
3,825 California Educational Facilities Authority, Student Loan 3/08 at 102.00 Aaa 3,989,360
Revenue Bonds, Cal Loan Program, Series 2001A,
5.400%, 3/01/21 - MBIA Insured (Alternative Minimum Tax)
3,600 California State Public Works Board, Lease Revenue Bonds, 10/12 at 100.00 AAA 3,922,272
University of California, UCLA Replacement Hospital Project,
Series 2002A, 5.375%, 10/01/17 - FSA Insured
620 California Statewide Community Development Authority, 10/13 at 100.00 N/R 640,355
Revenue Bonds, Notre Dame de Namur University,
Series 2003, 6.500%, 10/01/23
7,595 San Francisco State University Foundation Inc., California, 9/11 at 100.00 AAA 7,957,661
Auxiliary Organization Student Housing Revenue Bonds,
Series 2001, 5.000%, 9/01/26 - MBIA Insured
2,990 University of California, Revenue Bonds, Multiple Purpose 9/08 at 101.00 AA 3,073,660
Projects, Series 2000K, 5.000%, 9/01/23
4,000 University of California, Revenue Bonds, Multi-Purpose 5/13 at 100.00 AAA 4,252,640
Projects, Series 2003A, 5.000%, 5/15/23 - AMBAC Insured
3,820 University of California, Revenue Bonds, Research Facilities, 9/09 at 101.00 AAA 3,957,444
Series 2001E, 5.000%, 9/01/26 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
26,450 Total Education and Civic Organizations 27,793,392
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 13.0% (8.6% OF TOTAL INVESTMENTS)
California Health Facilities Financing Authority, Revenue Bonds,
Casa Colina Inc., Series 2001:
4,000 6.000%, 4/01/22 4/12 at 100.00 BBB+ 4,302,080
2,000 6.125%, 4/01/32 4/12 at 100.00 BBB+ 2,136,260
2,020 California Health Facilities Financing Authority, Revenue Bonds, 11/15 at 100.00 A3 2,065,894
Cedars-Sinai Medical Center, Series 2005, 5.000%, 11/15/34
9,000 California Infrastructure Economic Development Bank, Revenue 8/11 at 102.00 A+ 9,588,240
Bonds, Kaiser Hospital Assistance LLC, Series 2001A,
5.550%, 8/01/31
6,525 California Statewide Community Development Authority, No Opt. Call A+ 7,299,191
Health Facility Revenue Refunding Bonds, Memorial
Health Services, Series 2003A, 6.000%, 10/01/12
6,450 California Statewide Community Development Authority, 6/13 at 100.00 AAA 6,963,678
Hospital Revenue Bonds, Monterey Peninsula Hospital,
Series 2003B, 5.250%, 6/01/18 - FSA Insured
7,665 California Statewide Community Development Authority, 11/09 at 102.00 A 8,098,532
Insured Mortgage Hospital Revenue Bonds, Mission
Community Hospital, Series 2001, 5.375%, 11/01/21
540 California Statewide Community Development Authority, 7/15 at 100.00 BBB+ 567,421
Revenue Bonds, Daughters of Charity Health System,
Series 2005A, 5.250%, 7/01/24
Central California Joint Powers Health Finance Authority,
Certificates of Participation, Community Hospitals of Central
California Obligated Group, Series 2000:
1,770 6.000%, 2/01/20 2/10 at 101.00 Baa2 1,873,775
1,740 6.000%, 2/01/30 2/10 at 101.00 Baa2 1,822,859
47
Nuveen California Dividend Advantage Municipal Fund 3 (NZH) (continued)
Portfolio of INVESTMENTS February 28, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 2,500 Whittier, California, Health Facility Revenue Bonds, 6/12 at 101.00 A $ 2,676,175
Presbyterian Intercommunity Hospital, Series 2002,
5.600%, 6/01/22
------------------------------------------------------------------------------------------------------------------------------------
44,210 Total Health Care 47,394,105
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 10.0% (6.6% OF TOTAL INVESTMENTS)
4,750 ABAG Finance Authority for Non-Profit Corporations, 8/30 at 100.00 BBB 4,972,015
California, Multifamily Housing Revenue Refunding Bonds,
United Dominion/2000 Post Apartments, Series 2000B
6.400%, 8/15/30 (Mandatory put 8/15/08) (Alternative
Minimum Tax)
4,000 ABAG Finance Authority for Non-Profit Corporations, California, 8/30 at 100.00 BBB 4,184,520
Multifamily Housing Revenue Refunding Bonds, United
Dominion/2000 Post Apartments, Series 2000B 6.250%, 8/15/30
(Mandatory put 8/15/08)
5,190 California Statewide Community Development Authority, 8/12 at 105.00 Aaa 5,810,880
GNMA Collateralized Housing Revenue Refunding Bonds,
Crowne Pointe Project, Series 2002F, 6.750%, 8/20/37
2,000 Daly City Housing Development Finance Agency, California, 12/13 at 102.00 A- 2,197,100
Mobile Home Park Revenue Bonds, Franciscan Mobile Home
Park Project, Series 2002A, 5.800%, 12/15/25
1,735 Rohnert Park Finance Authority, California, Senior Lien Revenue 9/13 at 100.00 A- 1,898,090
Bonds, Rancho Feliz Mobile Home Park, Series 2003A,
5.750%, 9/15/38
1,125 Rohnert Park Finance Authority, California, Subordinate Lien 9/13 at 100.00 N/R 1,219,680
Revenue Bonds, Rancho Feliz Mobile Home Park,
Series 2003B, 6.625%, 9/15/38
3,610 San Bernardino County Housing Authority, California, 11/11 at 105.00 Aaa 3,956,055
GNMA Collateralized Multifamily Mortgage Revenue Bonds,
Pacific Palms Mobile Home Park, Series 2001A,
6.700%, 12/20/41
7,500 San Bernardino County Housing Authority, California, 6/29 at 100.00 A- 7,775,250
Multifamily Housing Revenue Refunding Bonds, Equity
Residential Properties/Redlands Lawn and Tennis Apartments,
Series 1999A, 5.200%, 6/15/29 (Mandatory put 6/15/09)
San Jose, California, Multifamily Housing Revenue Bonds, GNMA
Mortgage-Backed Securities Program, Lenzen Housing, Series
2001B:
1,250 5.350%, 2/20/26 (Alternative Minimum Tax) 8/11 at 102.00 AAA 1,300,800
2,880 5.450%, 2/20/43 (Alternative Minimum Tax) 8/11 at 102.00 AAA 2,980,138
------------------------------------------------------------------------------------------------------------------------------------
34,040 Total Housing/Multifamily 36,294,528
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.5% (1.1% OF TOTAL INVESTMENTS)
2,450 California Health Facilities Financing Authority, Cal-Mortgage 1/13 at 100.00 A 2,564,856
Insured Revenue Bonds, Northern California Retired Officers
Community Corporation - Paradise Valley Estates, Series 2002,
5.125%, 1/01/22
California Health Facilities Financing Authority, Insured Senior
Living Revenue Bonds, Aldersly Project, Series 2002A:
1,500 5.125%, 3/01/22 3/12 at 101.00 A 1,571,880
1,315 5.250%, 3/01/32 3/12 at 101.00 A 1,375,648
------------------------------------------------------------------------------------------------------------------------------------
5,265 Total Long-Term Care 5,512,384
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 29.8% (19.8% OF TOTAL INVESTMENTS)
9,335 California, General Obligation Bonds, Series 2002, No Opt. Call AAA 11,013,620
6.000%, 2/01/16 - FSA Insured
9,000 California, General Obligation Bonds, Series 2004, 4/14 at 100.00 A 9,587,970
5.125%, 4/01/23
California, General Obligation Refunding Bonds, Series 2002:
8,450 5.000%, 2/01/12 No Opt. Call A 9,021,051
2,780 6.000%, 4/01/16 - AMBAC Insured No Opt. Call AAA 3,269,447
10 California, General Obligation Veterans Welfare Bonds, 12/06 at 102.00 AA- 10,276
Series 1997BJ, 5.500%, 12/01/18 (Alternative Minimum Tax)
14,300 California, General Obligation Veterans Welfare Bonds, 6/07 at 101.00 AAA 14,745,731
Series 2001BZ, 5.350%, 12/01/21 - MBIA Insured
(Alternative Minimum Tax)
1,840 Compton Unified School District, Los Angeles County, 9/13 at 100.00 AAA 2,012,224
California, General Obligation Bonds, Series 2003A,
5.250%, 9/01/18 - MBIA Insured
3,000 Contra Costa County Community College District, California, 8/12 at 100.00 AAA 3,190,770
General Obligation Bonds, Series 2002, 5.000%, 8/01/23 -
FGIC Insured
48
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 2,500 Fullerton Joint Union High School District, Orange County, 8/12 at 100.00 Aaa $ 2,651,675
California, General Obligation Bonds, Series 2002A,
5.000%, 8/01/23 - FSA Insured
2,260 Jurupa Unified School District, Riverside County, California, 8/11 at 101.00 AAA 2,420,596
General Obligation Bonds, Series 2002, 5.125%, 8/01/22 -
FGIC Insured
2,345 Los Angeles Community College District, Los Angeles County, 8/15 at 100.00 AAA 2,500,051
California, General Obligation Bonds, Series 2005A,
5.000%, 6/01/26 - FSA Insured
Los Angeles Unified School District, California, General
Obligation Bonds, Series 2003A:
3,750 5.250%, 7/01/20 - FSA Insured 7/13 at 100.00 AAA 4,094,063
7,200 5.000%, 7/01/22 - FSA Insured 7/13 at 100.00 AAA 7,637,328
3,145 Los Angeles Unified School District, California, General 7/15 at 100.00 AAA 3,351,343
Obligation Bonds, Series 2005A-1, 5.000%, 7/01/25 -
FGIC Insured
1,525 Lucia Mar Unified School District, San Luis Obispo County, 8/14 at 100.00 Aaa 1,676,981
California, General Obligation Bonds, Series 2004A,
5.250%, 8/01/22 - FGIC Insured
Oakland Unified School District, Alameda County, California,
General Obligation Bonds, Series 2005:
780 5.000%, 8/01/25 - MBIA Insured 8/15 at 100.00 AAA 829,694
820 5.000%, 8/01/26 - MBIA Insured 8/15 at 100.00 AAA 871,586
870 Puerto Rico, General Obligation and Public Improvement Bonds, 7/11 at 100.00 AAA 921,721
Series 2001, 5.000%, 7/01/24 - FSA Insured
Riverside Community College District, California, General
Obligation Bonds, Series 2005:
2,675 5.000%, 8/01/21 - FSA Insured 8/15 at 100.00 AAA 2,882,152
5,000 5.000%, 8/01/24 - FSA Insured 8/15 at 100.00 AAA 5,342,650
10,810 San Diego Unified School District, San Diego County, California, 7/11 at 102.00 AAA 11,698,366
General Obligation Bonds, Election of 1998, Series 2001C,
5.000%, 7/01/26 - FSA Insured
4,000 San Diego Unified School District, San Diego County, California, 7/12 at 101.00 AAA 4,377,920
General Obligation Bonds, Election of 1998, Series 2002D,
5.250%, 7/01/21 - FGIC Insured
San Jose-Evergreen Community College District, Santa Clara
County, California, General Obligation Bonds, Series 2005A:
605 5.000%, 9/01/25 - MBIA Insured 9/15 at 100.00 AAA 645,795
875 5.000%, 9/01/27 - MBIA Insured 9/15 at 100.00 AAA 931,175
1,000 Saugus Union School District, Los Angeles County, California, 8/12 at 100.00 AAA 1,062,010
General Obligation Bonds, Series 2002A, 5.000%, 8/01/24 -
FGIC Insured
1,630 West Contra Costa Unified School District, Contra Costa County, 8/11 at 101.00 AAA 1,734,353
California, General Obligation Bonds, Series 2003C,
5.000%, 8/01/22 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
100,505 Total Tax Obligation/General 108,480,548
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 41.2% (27.4% OF TOTAL INVESTMENTS)
4,000 Beaumont Financing Authority, California, Local Agency 9/12 at 102.00 N/R 4,426,320
Revenue Bonds, Series 2002A, 6.750%, 9/01/25
7,135 Brentwood Infrastructure Financing Authority, Contra Costa 11/11 at 100.00 AAA 7,575,515
County, California, Capital Improvement Revenue Bonds,
Series 2001, 5.000%, 11/01/25 - FSA Insured
8,210 California State Public Works Board, Lease Revenue Bonds, 12/13 at 100.00 A- 9,074,103
Department of Corrections, Series 2003C, 5.500%, 6/01/16
3,350 California State Public Works Board, Lease Revenue Bonds, 12/12 at 100.00 AAA 3,635,889
Department of General Services, Capital East End Project,
Series 2002A, 5.250%, 12/01/17 - AMBAC Insured
4,000 California State Public Works Board, Lease Revenue Bonds, 3/12 at 100.00 AAA 4,167,280
Department of General Services, Series 2002B,
5.000%, 3/01/27 - AMBAC Insured
4,510 California State Public Works Board, Lease Revenue Bonds, 12/11 at 102.00 AAA 4,738,883
Department of Mental Health, Hospital Addition,
Series 2001A, 5.000%, 12/01/26 - AMBAC Insured
5,350 California, Economic Recovery Revenue Bonds, 7/14 at 100.00 AA- 5,806,997
Series 2004A, 5.000%, 7/01/15
Capistrano Unified School District, Orange County, California,
Special Tax Bonds, Community Facilities District 90-2 - Talega,
Series 2003:
1,750 5.875%, 9/01/23 9/13 at 100.00 N/R 1,869,123
550 6.000%, 9/01/33 9/13 at 100.00 N/R 582,841
49
Nuveen California Dividend Advantage Municipal Fund 3 (NZH) (continued)
Portfolio of INVESTMENTS February 28, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,810 Cerritos Public Financing Authority, California, Tax Allocation No Opt. Call AAA $ 1,979,217
Revenue Bonds, Los Cerritos Redevelopment Projects,
Series 2002A, 5.000%, 11/01/14 - AMBAC Insured
1,270 Coalinga Public Financing Authority, California, Local No Opt. Call AAA 1,519,339
Obligation Senior Lien Revenue Bonds, Series 1998A,
6.000%, 9/15/18 - AMBAC Insured
1,125 Fontana, California, Special Tax Bonds, Sierra Community 9/14 at 100.00 N/R 1,191,398
Facilities District 22, Series 2004, 6.000%, 9/01/34
1,000 Fullerton Community Facilities District 1, California, Special 9/12 at 100.00 N/R 1,070,030
Tax Bonds, Amerige Heights, Series 2002, 6.100%, 9/01/22
550 Hesperia Community Redevelopment Agency, California, 9/15 at 100.00 AAA 587,532
Tax Allocation Bonds, Series 2005A, 5.000%, 9/01/20 -
XLCA Insured
3,000 Lake Elsinore Public Finance Authority, California, Local 10/13 at 102.00 N/R 3,277,530
Agency Revenue Refunding Bonds, Series 2003H,
6.000%, 10/01/20
5,250 Lammersville School District, San Joaquin County, California, 9/12 at 101.00 N/R 5,653,830
Special Tax Bonds, Community Facilities District of Mountain
House, Series 2002, 6.300%, 9/01/24
2,000 Lee Lake Water District, Riverside County, California, Special 9/13 at 102.00 N/R 2,218,140
Tax Bonds, Community Facilities District 1 of Sycamore
Creek, Series 2003, 6.500%, 9/01/24
2,200 Lincoln, California, Special Tax Bonds, Lincoln Crossing 9/13 at 102.00 N/R 2,422,464
Community Facilities District 03-1, Series 2003A,
6.500%, 9/01/25
1,500 Lincoln, California, Special Tax Bonds, Lincoln Crossing 9/13 at 102.00 N/R 1,608,300
Community Facilities District 03-1, Series 2004,
6.000%, 9/01/34
5,425 Lodi, California, Certificates of Participation, Public 10/12 at 100.00 AAA 5,661,313
Improvement Financing Project, Series 2002,
5.000%, 10/01/26 - MBIA Insured
3,075 Los Angeles County Metropolitan Transportation Authority, No Opt. Call AAA 3,404,855
California, Proposition C Second Senior Lien Sales Tax
Revenue Refunding Bonds, Series 2003A, 5.250%, 7/01/13 -
MBIA Insured
1,000 Monterey County, California, Certificates of Participation, 8/11 at 100.00 Aaa 1,075,830
Master Plan Financing, Series 2001, 5.250%, 8/01/15 -
MBIA Insured
1,675 Moreno Valley Unified School District, Riverside County, 3/14 at 100.00 AAA 1,761,263
California, Certificates of Participation, Series 2005,
5.000%, 3/01/26 - FSA Insured
3,000 Oakland Redevelopment Agency, California, Subordinate 3/13 at 100.00 AAA 3,318,000
Lien Tax Allocation Bonds, Central District Redevelopment
Project, Series 2003, 5.500%, 9/01/19 - FGIC Insured
4,520 Ontario Redevelopment Financing Authority, California, Lease 8/11 at 101.00 AAA 4,799,562
Revenue Bonds, Capital Projects, Series 2001,
5.000%, 8/01/24 - AMBAC Insured
2,000 Orange County, California, Special Tax Bonds, Community 8/11 at 101.00 N/R 2,050,640
Facilities District 02-1 of Ladera Ranch, Series 2003A,
5.550%, 8/15/33
11,165 Palm Desert Financing Authority, California, Tax Allocation 4/12 at 102.00 AAA 11,756,298
Revenue Refunding Bonds, Project Area 1, Series 2002,
5.100%, 4/01/30 - MBIA Insured
3,250 Pomoma Public Financing Authority, California, Revenue 2/11 at 100.00 AAA 3,355,007
Refunding Bonds, Merged Redevelopment Projects,
Series 2001AD, 5.000%, 2/01/27 - MBIA Insured
625 Rialto Redevelopment Agency, California, Tax Allocation 9/15 at 100.00 AAA 650,675
Bonds, Merged Project Area, Series 2005A, 5.000%, 9/01/35 -
XLCA Insured
1,310 Riverside County Public Financing Authority, California, Tax 10/15 at 100.00 AAA 1,364,142
Allocation Bonds, Multiple Projects, Series 2005A,
5.000%, 10/01/35 - XLCA Insured
1,700 Roseville, California, Special Tax Bonds, Community Facilities 9/09 at 103.00 N/R 1,792,973
District 1 - Crocker, Series 2003, 6.000%, 9/01/27
1,150 Sacramento, California, Special Tax Bonds, North Natomas 9/14 at 100.00 N/R 1,234,214
Community Facilities District 4, Series 2003C,
6.000%, 9/01/33
14,505 San Diego Redevelopment Agency, California, Subordinate 9/11 at 101.00 AAA 15,160,191
Lien Tax Allocation Bonds, Centre City Project, Series 2001A,
5.000%, 9/01/26 - FSA Insured
8,725 San Francisco Bay Area Rapid Transit District, California, 7/11 at 100.00 AAA 9,074,436
Sales Tax Revenue Bonds, Series 2001, 5.000%, 7/01/26 -
AMBAC Insured
1,595 San Marcos Public Facilities Authority, California, Special 9/09 at 102.00 N/R 1,677,047
Tax Bonds, Community Facilities District 99-1, Series 2003B,
6.000%, 9/01/24
50
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 8,710 South Orange County Public Financing Authority, California, 8/15 at 100.00 AAA $ 9,094,372
Special Tax Revenue Bonds, Ladera Ranch, Series 2005A,
5.000%, 8/15/32 - AMBAC Insured
2,810 West Patterson Financing Authority, California, Special Tax 9/13 at 103.00 N/R 3,173,726
Bonds, Community Facilities District 01-1, Series 2003B,
7.000%, 9/01/38
2,000 West Patterson Financing Authority, California, Special 9/13 at 102.00 N/R 2,118,060
Tax Bonds, Community Facilities District 01-1, Series 2004B,
6.000%, 9/01/39
1,375 West Patterson Financing Authority, California, Special 9/13 at 103.00 N/R 1,478,125
Tax Bonds, Community Facilities District 2001-1,
Series 2004A, 6.125%, 9/01/39
2,500 Yucaipa-Calimesa Joint Unified School District, San Bernardino 10/11 at 100.00 AAA 2,594,250
County, California, General Obligation Refunding Bonds,
Series 2001A, 5.000%, 10/01/26 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
140,675 Total Tax Obligation/Limited 149,999,710
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 10.0% (6.6% OF TOTAL INVESTMENTS)
11,750 Foothill/Eastern Transportation Corridor Agency, California, 1/14 at 101.00 BBB- 10,302,400
Toll Road Revenue Refunding Bonds, Series 1999,
0.000%, 1/15/28
3,000 Port of Oakland, California, Revenue Bonds, Series 2002M, 11/12 at 100.00 AAA 3,260,640
5.250%, 11/01/20 - FGIC Insured
1,500 Port of Oakland, California, Revenue Refunding Bonds, 11/07 at 102.00 AAA 1,583,970
Series 1997I, 5.600%, 11/01/19 - MBIA Insured
San Francisco Airports Commission, California, Revenue Bonds,
San Francisco International Airport, Second Series 2003, Issue
29B:
4,110 5.125%, 5/01/17 - FGIC Insured 5/13 at 100.00 AAA 4,412,907
10,625 5.125%, 5/01/18 - FGIC Insured 5/13 at 100.00 AAA 11,373,850
5,140 5.125%, 5/01/19 - FGIC Insured 5/13 at 100.00 AAA 5,495,637
------------------------------------------------------------------------------------------------------------------------------------
36,125 Total Transportation 36,429,404
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 11.1% (7.4% OF TOTAL INVESTMENTS) (4)
11,240 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 Baa3 (4) 12,285,545
Settlement Asset-Backed Bonds, Merced County Tobacco
Funding Corporation, Series 2002A, 5.500%, 6/01/33
(Pre-refunded 6/01/12)
California Department of Water Resources, Power Supply
Revenue Bonds, Series 2002A:
3,500 5.375%, 5/01/17 (Pre-refunded 5/01/12) - XLCA Insured 5/12 at 101.00 AAA 3,877,755
9,000 5.125%, 5/01/18 (Pre-refunded 5/01/12) 5/12 at 101.00 Aaa 9,847,620
5,500 Puerto Rico Highway and Transportation Authority, Highway 7/12 at 100.00 AAA 6,034,160
Revenue Bonds, Series 2002D, 5.375%, 7/01/36
(Pre-refunded 7/01/12)
780 Puerto Rico, General Obligation and Public Improvement Bonds, 7/11 at 100.00 AAA 835,536
Series 2001, 5.000%, 7/01/24 (Pre-refunded 7/01/11) -
FSA Insured
1,600 San Marcos Public Facilities Authority, California, Special 9/07 at 102.00 N/R (4) 1,693,872
Tax Revenue Bonds, Community Facilities District 99-1,
Series 2002, 6.300%, 9/01/20 (Pre-refunded 9/01/07)
1,595 Santa Clara Valley Transportation Authority, California, Sales 6/11 at 100.00 AAA 1,710,334
Tax Revenue Bonds, Series 2001A, 5.000%, 6/01/22
(Pre-refunded 6/01/11) - MBIA Insured
3,905 Southwestern Community College District, San Diego County, 8/14 at 100.00 AAA 4,278,943
California, General Obligation Bonds, Series 2004,
5.000%, 8/01/22 (Pre-refunded 8/01/14) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
37,120 Total U.S. Guaranteed 40,563,765
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 9.1% (6.0% OF TOTAL INVESTMENTS)
15,000 California Pollution Control Financing Authority, Remarketed 4/11 at 102.00 AAA 16,086,447
Revenue Bonds, Pacific Gas and Electric Company,
Series 1996A, 5.350%, 12/01/16 - MBIA Insured
(Alternative Minimum Tax)
1,200 Los Angeles Department of Water and Power, California, 7/13 at 100.00 AAA 1,277,196
Power System Revenue Bonds, Series 2003A-2,
5.000%, 7/01/21 - MBIA Insured
1,285 Merced Irrigation District, California, Electric System Revenue 9/15 at 100.00 AAA 1,357,256
Bonds, Series 2005, 5.125%, 9/01/31 - XLCA Insured
5,000 Merced Irrigation District, California, Revenue Certificates 9/13 at 102.00 Baa3 5,283,600
of Participation, Electric System Project, Series 2003,
5.700%, 9/01/36
51
Nuveen California Dividend Advantage Municipal Fund 3 (NZH) (continued)
Portfolio of INVESTMENTS February 28, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES (continued)
$ 2,250 Salinas Valley Solid Waste Authority, California, Revenue 8/12 at 100.00 AAA $ 2,348,685
Bonds, Series 2002, 5.125%, 8/01/22 - AMBAC Insured
(Alternative Minimum Tax)
6,085 Southern California Public Power Authority, Revenue Bonds, 7/13 at 100.00 AAA 6,651,453
Magnolia Power Project, Series 2003-1A, 5.250%, 7/01/16 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
30,820 Total Utilities 33,004,637
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 13.3% (8.8% OF TOTAL INVESTMENTS)
1,070 Burbank, California, Wastewater System Revenue Bonds, 6/14 at 100.00 AAA 1,137,207
Series 2004A, 5.000%, 6/01/22 - AMBAC Insured
7,000 California Department of Water Resources, Water System 6/13 at 100.00 AAA 7,731,570
Revenue Bonds, Central Valley Project, Series 2003Y,
5.250%, 12/01/13 - FGIC Insured
7,000 Carmichael Water District, Sacramento County, California, 9/09 at 102.00 AAA 7,282,310
Water Revenue Certificates of Participation, Series 1999,
5.125%, 9/01/29 - MBIA Insured
2,000 El Dorado Irrigation District, California, Water and Sewer 3/14 at 100.00 AAA 2,128,140
Certificates of Participation, Series 2004A, 5.000%, 3/01/20 -
FGIC Insured
1,000 Pico Rivera Water Authority, California, Revenue Bonds, 12/11 at 102.00 N/R 1,071,890
Series 2001A, 6.250%, 12/01/32
1,000 San Buenaventura, California, Wastewater Revenue 3/14 at 100.00 AAA 1,054,970
Certificates of Participation, Series 2004,
5.000%, 3/01/24 - MBIA Insured
San Diego Public Facilities Financing Authority, California,
Subordinate Lien Water Revenue Bonds, Series 2002:
2,500 5.000%, 8/01/23 - MBIA Insured 8/12 at 100.00 AAA 2,658,975
6,260 5.000%, 8/01/24 - MBIA Insured 8/12 at 100.00 AAA 6,648,183
San Francisco City and County Public Utilities Commission,
California, Clean Water Revenue Refunding Bonds, Series 2003A:
3,315 5.250%, 10/01/18 - MBIA Insured 4/13 at 100.00 AAA 3,610,168
12,000 5.250%, 10/01/19 - MBIA Insured 4/13 at 100.00 AAA 13,068,480
1,955 Westlands Water District, California, Revenue Certificates 3/15 at 100.00 AAA 2,079,592
of Participation, Series 2005A, 5.000%, 9/01/23 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
45,100 Total Water and Sewer 48,471,485
------------------------------------------------------------------------------------------------------------------------------------
$ 511,950 Total Long-Term Investments (cost $522,193,773) - 150.0% 546,220,510
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.5% (0.4% OF TOTAL INVESTMENTS)
1,000 California Department of Water Resources, Power Supply VMIG-1 1,000,000
Revenue Bonds, Variable Rate Demand Obligations,
Series 2002C-7, 3.150%, 5/01/22 - FSA Insured (5)
1,000 Irvine Assessment District No. 97-17, California, Limited VMIG-1 1,000,000
Obligation Improvement Bonds, Variable Rate Demand
Obligations, Series 1998, 2.900%, 9/02/23 (5)
------------------------------------------------------------------------------------------------------------------------------------
$ 2,000 Total Short-Term Investments (cost $2,000,000) 2,000,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $524,193,773) - 150.5% 548,220,510
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.8% 3,107,017
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (51.3)% (187,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 364,327,527
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices
of the earliest optional call or redemption. There may be
other call provisions at varying prices at later dates.
Certain mortgage-backed securities may be subject to
periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's or Moody's
rating. Ratings below BBB by Standard & Poor's Group or Baa
by Moody's Investor Service, Inc. are considered to be below
investment grade.
(4) Investment is backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensure the timely payment of principal and
interest. Such investments are normally considered to be
equivalent to AAA rated securities.
(5) Investment has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term investment. The rate disclosed is that in effect
at the end of the reporting period. This rate changes
periodically based on market conditions or a specified
market index.
N/R Investment is not rated.
See accompanying notes to financial statements.
52
Nuveen Insured California Dividend Advantage Municipal Fund (NKL)
Portfolio of
INVESTMENTS February 28, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.3% (1.5% OF TOTAL INVESTMENTS)
$ 4,500 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB $ 5,427,180
Tobacco Settlement Asset-Backed Revenue Bonds,
Series 2003A-2, 7.900%, 6/01/42
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 8.6% (5.8% OF TOTAL INVESTMENTS)
1,675 California Educational Facilities Authority, Revenue Bonds, 10/12 at 100.00 A2 1,753,189
University of San Diego, Series 2002A, 5.250%, 10/01/30
9,000 California State University, Systemwide Revenue Bonds, 11/12 at 100.00 AAA 9,498,420
Series 2002A, 5.125%, 11/01/26 - AMBAC Insured
9,000 University of California, Revenue Bonds, Multiple Purpose 9/08 at 101.00 AA 9,299,430
Projects, Series 2000K, 5.300%, 9/01/30
------------------------------------------------------------------------------------------------------------------------------------
19,675 Total Education and Civic Organizations 20,551,039
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 5.5% (3.7% OF TOTAL INVESTMENTS)
5,000 ABAG Finance Authority for Non-Profit Corporations, 4/12 at 100.00 A 5,360,650
California, Cal-Mortgage Insured Revenue Bonds,
Sansum-Santa Barbara Medical Foundation Clinic,
Series 2002A, 5.600%, 4/01/26
2,815 California Health Facilities Financing Authority, Revenue 8/13 at 100.00 AAA 2,975,511
Bonds, Lucile Salter Packard Children's Hospital,
Series 2003C, 5.000%, 8/15/20 - AMBAC Insured
1,090 California State Public Works Board, Revenue Bonds, 11/14 at 100.00 AAA 1,157,264
University of California - Davis Medical Center,
Series 2004II-A, 5.000%, 11/01/21 - MBIA Insured
3,380 Rancho Mirage Joint Powers Financing Authority, California, 7/14 at 100.00 A3 3,648,811
Revenue Bonds, Eisenhower Medical Center, Series 2004,
5.875%, 7/01/26
------------------------------------------------------------------------------------------------------------------------------------
12,285 Total Health Care 13,142,236
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.2% (0.9% OF TOTAL INVESTMENTS)
1,000 California Statewide Community Development Authority, 8/12 at 100.00 A 1,061,230
Student Housing Revenue Bonds, EAH - Irvine East Campus
Apartments, LLC Project, Series 2002A, 5.500%, 8/01/22 -
ACA Insured
1,905 Los Angeles, California, GNMA Mortgage-Backed Securities 7/11 at 102.00 AAA 2,009,546
Program Multifamily Housing Revenue Bonds, Park Plaza
West Senior Apartments, Series 2001B, 5.300%, 1/20/21
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,905 Total Housing/Multifamily 3,070,776
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.3% (0.9% OF TOTAL INVESTMENTS)
3,000 California Pollution Control Financing Authority, Solid Waste 6/23 at 100.00 BBB+ 3,190,800
Disposal Revenue Bonds, Republic Services Inc.,
Series 2002C, 5.250%, 6/01/23 (Mandatory put 12/01/17)
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 3.5% (2.4% OF TOTAL INVESTMENTS)
3,000 ABAG Finance Authority for Non-Profit Corporations, 11/12 at 100.00 A 3,157,770
California, Insured Senior Living Revenue Bonds, Odd
Fellows Home of California, Series 2003A, 5.200%, 11/15/22
5,000 California Statewide Community Development Authority, 11/13 at 100.00 A 5,242,450
Revenue Bonds, Jewish Home for the Aging, Series 2003,
5.000%, 11/15/18
------------------------------------------------------------------------------------------------------------------------------------
8,000 Total Long-Term Care 8,400,220
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 32.0% (21.6% OF TOTAL INVESTMENTS)
5,920 Cajon Valley Union School District, San Diego County, 8/10 at 102.00 AAA 6,206,350
California, General Obligation Bonds, Series 2002B,
5.125%, 8/01/32 - MBIA Insured
2,900 California, General Obligation Bonds, Series 2003, 5.000%, 2/01/21 8/13 at 100.00 A 3,055,092
9,000 California, General Obligation Refunding Bonds, Series 2002, 2/12 at 100.00 AAA 9,438,840
5.000%, 2/01/22 - MBIA Insured
53
Nuveen Insured California Dividend Advantage Municipal Fund (NKL) (continued)
Portfolio of INVESTMENTS February 28, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
Compton Community College District, Los Angeles County,
California, General Obligation Bonds, Series 2004A:
$ 1,315 5.250%, 7/01/22 - MBIA Insured 7/14 at 100.00 AAA $ 1,445,224
2,560 5.250%, 7/01/23 - MBIA Insured 7/14 at 100.00 AAA 2,811,597
2,415 El Monte Union High School District, Los Angeles County, 6/13 at 100.00 AAA 2,529,254
California, General Obligation Bonds, Series 2003A,
5.000%, 6/01/28 - FSA Insured
10,000 Fremont Unified School District, Alameda County, California, 8/12 at 101.00 AAA 10,615,500
General Obligation Bonds, Series 2002A, 5.000%, 8/01/25 -
FGIC Insured
1,520 Los Angeles Community College District, Los Angeles County, 8/15 at 100.00 AAA 1,620,502
California, General Obligation Bonds, Series 2005A,
5.000%, 6/01/26 - FSA Insured
5,000 Los Angeles Unified School District, California, General 7/12 at 100.00 AAA 5,262,000
Obligation Bonds, Series 2002E, 5.125%, 1/01/27 -
MBIA Insured
Los Angeles Unified School District, California, General
Obligation Bonds, Series 2003A:
3,700 5.000%, 7/01/22 - FSA Insured 7/13 at 100.00 AAA 3,924,738
3,500 5.000%, 1/01/28 - MBIA Insured 7/13 at 100.00 AAA 3,700,060
1,500 Madera Unified School District, Madera County, California, 8/12 at 100.00 AAA 1,565,625
General Obligation Bonds, Series 2002, 5.000%, 8/01/28 -
FSA Insured
2,500 Oakland Unified School District, Alameda County, California, 8/12 at 100.00 AAA 2,703,075
General Obligation Bonds, Series 2002, 5.250%, 8/01/21 -
FGIC Insured
Oakland Unified School District, Alameda County, California,
General Obligation Bonds, Series 2005:
505 5.000%, 8/01/25 - MBIA Insured 8/15 at 100.00 AAA 537,174
530 5.000%, 8/01/26 - MBIA Insured 8/15 at 100.00 AAA 563,342
3,250 San Diego Unified School District, San Diego County, 7/11 at 102.00 AAA 3,517,085
California, General Obligation Bonds, Election of 1998,
Series 2001C, 5.000%, 7/01/22 - FSA Insured
1,160 San Gabriel Unified School District, Los Angeles County, 8/15 at 100.00 AAA 1,247,000
California, General Obligation Bonds, Series 2005,
5.000%, 8/01/22 - FSA Insured
San Jose-Evergreen Community College District, Santa Clara
County, California, General Obligation Bonds, Series 2005A:
395 5.000%, 9/01/25 - MBIA Insured 9/15 at 100.00 AAA 421,635
575 5.000%, 9/01/27 - MBIA Insured 9/15 at 100.00 AAA 611,915
3,500 San Mateo County Community College District, California, 9/12 at 100.00 AAA 3,667,125
General Obligation Bonds, Series 2002A, 5.000%, 9/01/26 -
FGIC Insured
10,000 Vista Unified School District, San Diego County, California, 8/12 at 100.00 AAA 10,635,900
General Obligation Bonds, Series 2002A, 5.000%, 8/01/23 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
71,745 Total Tax Obligation/General 76,079,033
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 41.9% (28.3% OF TOTAL INVESTMENTS)
1,450 Baldwin Park Public Financing Authority, California, Sales Tax 8/13 at 102.00 BBB 1,533,593
and Tax Allocation Bonds, Puente Merced Redevelopment
Project, Series 2003, 5.250%, 8/01/21
6,895 Brea and Olinda Unified School District, Orange County, 8/11 at 101.00 AAA 7,240,784
California, Certificates of Participation Refunding,
Series 2002A, 5.125%, 8/01/26 - FSA Insured
2,290 Burbank Public Financing Authority, California, Revenue 12/13 at 100.00 AAA 2,494,314
Refunding Bonds, Golden State Redevelopment Project,
Series 2003A, 5.250%, 12/01/19 - AMBAC Insured
2,200 California Infrastructure Economic Development Bank, 9/13 at 101.00 AAA 2,317,568
Los Angeles County, Revenue Bonds, Department of
Public Social Services, Series 2003, 5.000%, 9/01/28 -
AMBAC Insured
3,100 California State Public Works Board, Lease Revenue Bonds, 11/15 at 100.00 AAA 3,246,320
Department of Health Services, Richmond Lab, Series 2005B,
5.000%, 11/01/30 - XLCA Insured
7,035 Corona-Norco Unified School District, Riverside County, 9/13 at 100.00 AAA 7,373,454
California, Special Tax Bonds, Community Facilities
District 98-1, Series 2003, 5.000%, 9/01/28 - MBIA Insured
3,145 Culver City Redevelopment Agency, California, Tax Allocation 5/11 at 101.00 AAA 3,298,979
Revenue Bonds, Redevelopment Project, Series 2002A,
5.125%, 11/01/25 - MBIA Insured
54
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 8,720 El Monte, California, Senior Lien Certificates of Participation, 1/11 at 100.00 AAA $ 9,055,197
Department of Public Services Facility Phase II, Series 2001,
5.000%, 1/01/21 - AMBAC Insured
4,000 Folsom Public Financing Authority, California, Special Tax 9/12 at 102.00 AAA 4,251,960
Revenue Bonds, Series 2004A, 5.000%, 9/01/21 -
AMBAC Insured
355 Hesperia Community Redevelopment Agency, California, 9/15 at 100.00 AAA 379,225
Tax Allocation Bonds, Series 2005A, 5.000%, 9/01/20 -
XLCA Insured
2,115 Inglewood Redevelopment Agency, California, Tax Allocation No Opt. Call AAA 2,386,883
Refunding Bonds, Merged Area Redevelopment Project,
Series 1998A, 5.250%, 5/01/23 - AMBAC Insured
3,500 La Quinta Redevelopment Agency, California, Tax Allocation 9/11 at 102.00 AAA 3,671,850
Bonds, Redevelopment Project Area 1, Series 2001,
5.100%, 9/01/31 - AMBAC Insured
3,400 La Quinta Redevelopment Agency, California, Tax Allocation 9/12 at 102.00 AAA 3,616,648
Bonds, Redevelopment Project Area 1, Series 2002,
5.000%, 9/01/22 - AMBAC Insured
4,690 Los Angeles County Metropolitan Transportation Authority, 7/08 at 101.00 AAA 4,882,337
California, Proposition C Second Senior Lien Sales Tax
Revenue Refunding Bonds, Series 1998A, 5.000%, 7/01/23 -
AMBAC Insured
1,460 Los Angeles, California, Certificates of Participation, 6/13 at 100.00 AAA 1,517,042
Municipal Improvement Corporation, Series 2003AW,
5.000%, 6/01/33 - AMBAC Insured
7,000 Los Angeles, California, Certificates of Participation, 4/12 at 100.00 AAA 7,372,120
Series 2002, 5.200%, 4/01/27 - AMBAC Insured
8,470 Ontario Redevelopment Financing Authority, California, Lease 8/11 at 101.00 AAA 8,968,544
Revenue Bonds, Capital Projects, Series 2001, 5.200%, 8/01/29 -
AMBAC Insured
5,000 Palm Desert Financing Authority, California, Tax Allocation 4/12 at 102.00 AAA 5,263,050
Revenue Refunding Bonds, Project Area 1, Series 2002,
5.000%, 4/01/25 - MBIA Insured
405 Rialto Redevelopment Agency, California, Tax Allocation 9/15 at 100.00 AAA 421,637
Bonds, Merged Project Area, Series 2005A, 5.000%, 9/01/35 -
XLCA Insured
845 Riverside County Public Financing Authority, California, Tax 10/15 at 100.00 AAA 879,924
Allocation Bonds, Multiple Projects, Series 2005A,
5.000%, 10/01/35 - XLCA Insured
4,475 Riverside County, California, Asset Leasing Corporate Leasehold 6/12 at 101.00 AAA 4,738,667
Revenue Bonds, Riverside County Hospital Project,
Series 1997B, 5.000%, 6/01/19 - MBIA Insured
3,175 San Buenaventura, California, Certificates of Participation, 2/11 at 101.00 AAA 3,349,879
Series 2001C, 5.250%, 2/01/31 - AMBAC Insured
3,730 San Diego Redevelopment Agency, California, Subordinate 9/09 at 101.00 Baa2 3,858,498
Lien Tax Increment and Parking Revenue Bonds, Centre
City Project, Series 2003B, 5.250%, 9/01/26
4,000 San Jose Financing Authority, California, Lease Revenue 9/11 at 100.00 AAA 4,255,960
Refunding Bonds, Convention Center Project, Series 2001F,
5.000%, 9/01/19 - MBIA Insured
1,000 Shasta Joint Powers Financing Authority, California, Lease 4/13 at 100.00 AAA 1,073,610
Revenue Bonds, County Administration Building Project,
Series 2003A, 5.250%, 4/01/23 - MBIA Insured
2,160 Temecula Redevelopment Agency, California, Tax Allocation 8/08 at 102.00 AAA 2,266,099
Revenue Bonds, Redevelopment Project 1, Series 2002,
5.125%, 8/01/27 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
94,615 Total Tax Obligation/Limited 99,714,142
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 5.8% (3.9% OF TOTAL INVESTMENTS)
2,250 California Infrastructure Economic Development Bank, 7/13 at 100.00 AAA 2,348,843
First Lien Revenue Bonds, San Francisco Bay Area Toll
Bridge, Series 2003A, 5.000%, 7/01/36 - AMBAC Insured
7,500 Foothill/Eastern Transportation Corridor Agency, California, 1/14 at 101.00 BBB- 6,561,825
Toll Road Revenue Refunding Bonds, Series 1999,
0.000%, 1/15/29
San Francisco Airports Commission, California, Revenue Bonds,
San Francisco International Airport, Second Series 2003, Issue 29A:
2,185 5.250%, 5/01/16 - FGIC Insured (Alternative Minimum Tax) 5/13 at 100.00 AAA 2,337,600
2,300 5.250%, 5/01/17 - FGIC Insured (Alternative Minimum Tax) 5/13 at 100.00 AAA 2,454,744
------------------------------------------------------------------------------------------------------------------------------------
14,235 Total Transportation 13,703,012
------------------------------------------------------------------------------------------------------------------------------------
55
Nuveen Insured California Dividend Advantage Municipal Fund (NKL) (continued)
Portfolio of INVESTMENTS February 28, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 11.5% (7.7% OF TOTAL INVESTMENTS) (4)
$ 6,000 California Department of Water Resources, Power Supply 5/12 at 101.00 Aaa $ 6,565,080
Revenue Bonds, Series 2002A, 5.125%, 5/01/18 (Pre-refunded
5/01/12)
California Health Facilities Financing Authority, Revenue Bonds,
Cedars-Sinai Medical Center, Series 1999A:
2,500 6.125%, 12/01/30 (Pre-refunded 12/01/09) 12/09 at 101.00 A3 (4) 2,761,900
1,000 6.250%, 12/01/34 (Pre-refunded 12/01/09) 12/09 at 101.00 A3 (4) 1,108,950
Fresno Unified School District, Fresno County, California,
General Obligation Bonds, Series 2002B:
1,135 5.125%, 8/01/23 - FGIC Insured (ETM) 8/10 at 102.00 AAA 1,220,159
1,190 5.125%, 8/01/24 - FGIC Insured (ETM) 8/10 at 102.00 AAA 1,279,286
5.125%, 8/01/25 - FGIC Insured (ETM) 8/10 at 102.00 AAA 1,342,085
1,255 5.125%, 8/01/26 - FGIC Insured (ETM) 8/10 at 102.00 AAA 1,343,465
2,070 Fresno Unified School District, Fresno County, California, 8/10 at 102.00 AAA 2,215,914
General Obligation Bonds, Series 2002G, 5.125%, 8/01/26 -
FSA Insured (ETM)
3,300 Peralta Community College District, Alameda County, California, 8/09 at 102.00 AAA 3,542,319
General Obligation Bonds, Election of 2000, Series 2001A,
5.000%, 8/01/31 (Pre-refunded 8/01/09) - FGIC Insured
2,980 Santa Clarita Community College District, Los Angeles 8/11 at 101.00 AAA 3,243,849
County, California, General Obligation Bonds, Series 2002,
5.125%, 8/01/26 (Pre-refunded 8/01/11) - FGIC Insured
2,460 Vacaville Unified School District, Solano County, California, 8/11 at 101.00 AAA 2,662,729
General Obligation Bonds, Series 2002, 5.000%, 8/01/26
(Pre-refunded 8/01/11) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
25,135 Total U.S. Guaranteed 27,285,736
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 16.9% (11.4% OF TOTAL INVESTMENTS)
9,000 Anaheim Public Finance Authority, California, Revenue Bonds, 10/12 at 100.00 AAA 9,418,410
Electric System Distribution Facilities, Series 2002A,
5.000%, 10/01/27 - FSA Insured
10,000 California Pollution Control Financing Authority, Remarketed 4/11 at 102.00 AAA 10,724,302
Revenue Bonds, Pacific Gas and Electric Company,
Series 1996A, 5.350%, 12/01/16 - MBIA Insured (Alternative
Minimum Tax)
3,000 Los Angeles Department of Water and Power, California, 7/11 at 100.00 AAA 3,206,850
Power System Revenue Bonds, Series 2001A-1,
5.250%, 7/01/21 - FSA Insured
775 Los Angeles Department of Water and Power, California, 7/13 at 100.00 AAA 824,856
Power System Revenue Bonds, Series 2003A-2,
5.000%, 7/01/21 - MBIA Insured
830 Merced Irrigation District, California, Electric System Revenue 9/15 at 100.00 AAA 876,671
Bonds, Series 2005, 5.125%, 9/01/31 - XLCA Insured
6,000 Northern California Power Agency, Revenue Refunding 7/08 at 101.00 AAA 6,258,180
Bonds, Hydroelectric Project 1, Series 1998A,
5.200%, 7/01/32 - MBIA Insured
3,000 Sacramento Municipal Utility District, California, Electric 8/11 at 100.00 AAA 3,148,290
Revenue Bonds, Series 2001N, 5.000%, 8/15/28 -
MBIA Insured
5,630 Southern California Public Power Authority, Subordinate 7/12 at 100.00 AAA 5,843,377
Revenue Refunding Bonds, Transmission Project,
Series 2002A, 4.750%, 7/01/19 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
38,235 Total Utilities 40,300,936
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 16.6% (11.2% OF TOTAL INVESTMENTS)
3,000 California Department of Water Resources, Water System 12/12 at 100.00 AAA 3,228,480
Revenue Bonds, Central Valley Project, Series 2002X,
5.150%, 12/01/23 - FGIC Insured
6,100 East Bay Municipal Utility District, Alameda and Contra 6/11 at 100.00 AAA 6,340,828
Costa Counties, California, Water System Subordinated
Revenue Bonds, Series 2001, 5.000%, 6/01/26 - MBIA Insured
9,000 Eastern Municipal Water District, California, Water and 7/11 at 100.00 AAA 9,286,470
Sewerage System Revenue Certificates of Participation,
Series 2001B, 5.000%, 7/01/30 - FGIC Insured
4,500 Los Angeles County Sanitation Districts Financing Authority, 10/13 at 100.00 AAA 4,788,630
California, Senior Revenue Bonds, Capital Projects,
Series 2003A, 5.000%, 10/01/23 - FSA Insured
3,205 Manteca Financing Authority, California, Sewerage Revenue 12/13 at 100.00 Aaa 3,222,147
Bonds, Series 2003B, 5.000%, 12/01/33 - MBIA Insured
56
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 9,185 Orange County Sanitation District, California, Certificates 8/13 at 100.00 AAA $ 9,557,084
of Participation, Series 2003, 5.000%, 2/01/33 - FGIC Insured
Semitropic Water Storage District, Kern County, California,
Water Banking Revenue Bonds, Series 2004A:
1,315 5.500%, 12/01/20 - XLCA Insured 12/14 at 100.00 AAA 1,451,773
1,415 5.500%, 12/01/21 - XLCA Insured 12/14 at 100.00 AAA 1,562,174
------------------------------------------------------------------------------------------------------------------------------------
37,720 Total Water and Sewer 39,437,586
------------------------------------------------------------------------------------------------------------------------------------
$ 332,050 Total Long-Term Investments (cost $328,013,874) - 147.1% 350,302,696
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 1.1% (0.7% OF TOTAL INVESTMENTS)
1,500 California Department of Water Resources, Power Supply VMIG-1 1,500,000
Revenue Bonds, Variable Rate Demand Obligations,
Series 2002C-7, 3.150%, 5/01/22 - FSA Insured (5)
1,000 Irvine Assessment District No. 97-17, California, Limited VMIG-1 1,000,000
Obligation Improvement Bonds, Variable Rate Demand
Obligations, Series 1998, 2.900%, 9/02/23 (5)
------------------------------------------------------------------------------------------------------------------------------------
$ 2,500 Total Short-Term Investments (cost $2,500,000) 2,500,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $330,513,874) - 148.2% 352,802,696
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.4% 3,245,027
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.6)% (118,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 238,047,723
====================================================================================================================
At least 80% of the Fund's net assets (including net assets
attributable to Preferred shares) are invested in municipal
securities that are either covered by Original Issue
Insurance, Secondary Market Insurance or Portfolio Insurance
which ensures the timely payment of principal and interest.
Up to 20% of the Fund's net assets (including net assets
attributable to Preferred shares) may be invested in
municipal securities that are (i) either backed by an escrow
or trust containing sufficient U.S. Government or U.S.
Government agency securities (also ensuring the timely
payment of principal and interest), or (ii) rated, at the
time of investment, within the four highest grades (Baa or
BBB or better by Moody's, S&P or Fitch) or unrated but
judged to be of comparable quality by the Adviser.
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices
of the earliest optional call or redemption. There may be
other call provisions at varying prices at later dates.
Certain mortgage-backed securities may be subject to
periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's or Moody's
rating. Ratings below BBB by Standard & Poor's Group or Baa
by Moody's Investor Service, Inc. are considered to be below
investment grade.
(4) Investment is backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensure the timely payment of principal and
interest. Such investments are normally considered to be
equivalent to AAA rated securities.
(5) Investment has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term investment. The rate disclosed is that in effect
at the end of the reporting period. This rate changes
periodically based on market conditions or a specified
market index.
(ETM) Investment is escrowed to maturity.
See accompanying notes to financial statements.
57
Nuveen Insured California Tax-Free Advantage Municipal Fund (NKX)
Portfolio of
INVESTMENTS February 28, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.2% (1.5% OF TOTAL INVESTMENTS)
$ 1,625 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB $ 1,959,815
Tobacco Settlement Asset-Backed Revenue Bonds,
Series 2003A-2, 7.900%, 6/01/42
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 15.3% (10.2% OF TOTAL INVESTMENTS)
1,500 California Health Facilities Financing Authority, Revenue 11/08 at 101.00 AAA 1,557,090
Bonds, UCSF - Stanford Healthcare, Series 1998A,
5.000%, 11/15/31 - FSA Insured
1,800 California Infrastructure Economic Development Bank, 8/11 at 102.00 A+ 1,917,648
Revenue Bonds, Kaiser Hospital Assistance LLC,
Series 2001A, 5.550%, 8/01/31
2,000 California Statewide Community Development Authority, 6/13 at 100.00 AAA 2,143,660
Hospital Revenue Bonds, Monterey Peninsula Hospital,
Series 2003B, 5.250%, 6/01/23 - FSA Insured
6,000 California Statewide Community Development Authority, No Opt. Call AAA 6,493,860
Revenue Bonds, Sherman Oaks Health System, Series 1998A,
5.000%, 8/01/22 - AMBAC Insured
1,260 Rancho Mirage Joint Powers Financing Authority, California, 7/14 at 100.00 A3 1,360,208
Revenue Bonds, Eisenhower Medical Center, Series 2004,
5.875%, 7/01/26
------------------------------------------------------------------------------------------------------------------------------------
12,560 Total Health Care 13,472,466
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.4% (0.9% OF TOTAL INVESTMENTS)
1,165 Poway, California, Housing Revenue Bonds, Revenue Bonds, 5/13 at 102.00 BBB+ 1,185,085
Poinsettia Mobile Home Park, Series 2003, 5.000%, 5/01/23
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 5.7% (3.9% OF TOTAL INVESTMENTS)
1,000 ABAG Finance Authority for Non-Profit Corporations, 11/12 at 100.00 A 1,052,590
California, Insured Senior Living Revenue Bonds, Odd Fellows
Home of California, Series 2003A, 5.200%, 11/15/22
2,000 California Health Facilities Financing Authority, Cal-Mortgage 1/13 at 100.00 A 2,108,440
Insured Revenue Bonds, Northern California Retired Officers
Community Corporation - Paradise Valley Estates, Series 2002,
5.250%, 1/01/26
1,815 California Statewide Community Development Authority, 11/13 at 100.00 A 1,903,009
Revenue Bonds, Jewish Home for the Aging, Series 2003,
5.000%, 11/15/18
------------------------------------------------------------------------------------------------------------------------------------
4,815 Total Long-Term Care 5,064,039
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 48.4% (32.5% OF TOTAL INVESTMENTS)
1,000 Berryessa Union School District, Santa Clara County, 8/12 at 100.00 AAA 1,064,180
California, General Obligation Bonds, Series 2003C,
5.000%, 8/01/21 - FSA Insured
2,000 Butte-Glenn Community College District, Butte and Glenn 8/12 at 101.00 Aaa 2,106,960
Counties, California, General Obligation Bonds, Series 2002A,
5.000%, 8/01/26 - MBIA Insured
500 California, General Obligation Bonds, Series 2004, 5.250%, 4/01/34 4/14 at 100.00 A 535,150
California, General Obligation Refunding Bonds, Series 2002:
1,500 5.000%, 2/01/12 No Opt. Call A 1,601,370
3,750 5.000%, 4/01/27 - AMBAC Insured 4/12 at 100.00 AAA 3,912,713
3,000 5.250%, 4/01/30 - XLCA Insured 4/12 at 100.00 AAA 3,210,570
450 Fremont Unified School District, Alameda County, California, 8/12 at 101.00 AAA 477,698
General Obligation Bonds, Series 2002A, 5.000%, 8/01/25 -
FGIC Insured
Hacienda La Puente Unified School District, Los Angeles County,
California, General Obligation Bonds, Series 2003B:
4,500 5.000%, 8/01/26 - FSA Insured 8/13 at 100.00 AAA 4,740,660
2,030 5.000%, 8/01/27 - FSA Insured 8/13 at 100.00 AAA 2,134,586
565 Los Angeles Community College District, Los Angeles County, 8/15 at 100.00 AAA 602,358
California, General Obligation Bonds, Series 2005A,
5.000%, 6/01/26 - FSA Insured
58
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 10,500 Los Angeles Unified School District, California, General 7/13 at 100.00 AAA $ 11,137,767
Obligation Bonds, Series 2003A, 5.000%, 7/01/22 - FSA Insured
2,000 Los Angeles, California, General Obligation Bonds, 9/12 at 100.00 AAA 2,129,760
Series 2002A, 5.000%, 9/01/22 - MBIA Insured
1,000 Murrieta Valley Unified School District, Riverside County, 9/13 at 100.00 AAA 1,054,020
California, General Obligation Bonds, Series 2003A,
5.000%, 9/01/26 - FGIC Insured
Oakland Unified School District, Alameda County, California,
General Obligation Bonds, Series 2005:
190 5.000%, 8/01/25 - MBIA Insured 8/15 at 100.00 AAA 202,105
200 5.000%, 8/01/26 - MBIA Insured 8/15 at 100.00 AAA 212,582
3,000 San Diego Unified School District, California, General 7/10 at 100.00 AAA 3,186,570
Obligation Bonds, Election of 1998, Series 2000B,
5.125%, 7/01/22 - MBIA Insured
San Jose-Evergreen Community College District, Santa Clara
County, California, General Obligation Bonds, Series 2005A:
145 5.000%, 9/01/25 - MBIA Insured 9/15 at 100.00 AAA 154,777
215 5.000%, 9/01/27 - MBIA Insured 9/15 at 100.00 AAA 228,803
3,855 San Rafael City High School District, Marin County, 8/12 at 100.00 AAA 4,023,656
California, General Obligation Bonds, Series 2003A,
5.000%, 8/01/28 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
40,400 Total Tax Obligation/General 42,716,285
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 42.7% (28.7% OF TOTAL INVESTMENTS)
550 Baldwin Park Public Financing Authority, California, Sales Tax 8/13 at 102.00 BBB 581,708
and Tax Allocation Bonds, Puente Merced Redevelopment
Project, Series 2003, 5.250%, 8/01/21
2,025 Burbank Public Financing Authority, California, Revenue 12/13 at 100.00 AAA 2,197,206
Refunding Bonds, Golden State Redevelopment Project,
Series 2003A, 5.250%, 12/01/22 - AMBAC Insured
2,000 California State Public Works Board, Lease Revenue Bonds, 12/13 at 100.00 A- 2,210,500
Department of Corrections, Series 2003C, 5.500%, 6/01/16
4,000 California State Public Works Board, Lease Revenue Bonds, 12/12 at 100.00 AAA 4,170,800
Department of General Services, Capital East End Project,
Series 2002A, 5.000%, 12/01/27 - AMBAC Insured
1,610 Folsom Public Financing Authority, California, Special Tax 9/12 at 102.00 AAA 1,711,414
Revenue Bonds, Series 2004A, 5.000%, 9/01/21 -
AMBAC Insured
130 Hesperia Community Redevelopment Agency, California, 9/15 at 100.00 AAA 138,871
Tax Allocation Bonds, Series 2005A, 5.000%, 9/01/20 -
XLCA Insured
5,540 Irvine Public Facilities and Infrastructure Authority, California, 3/06 at 103.00 AAA 5,745,257
Assessment Revenue Bonds, Series 2003C, 5.000%, 9/02/21 -
AMBAC Insured
1,770 Los Angeles Unified School District, California, Certificates 10/12 at 100.00 AAA 1,844,004
of Participation, Administration Building Project II,
Series 2002C, 5.000%, 10/01/27 - AMBAC Insured
2,000 Los Angeles, California, Certificates of Participation, 6/13 at 100.00 AAA 2,078,140
Municipal Improvement Corporation, Series 2003AW,
5.000%, 6/01/33 - AMBAC Insured
1,500 Los Osos, California, Improvement Bonds, Community Services 9/10 at 103.00 AAA 1,556,985
Wastewater Assessment District 1, Series 2002,
5.000%, 9/02/33 - MBIA Insured
500 Paramount Redevelopment Agency, California, Tax Allocation 8/13 at 100.00 AAA 531,335
Bonds, Redevelopment Project Area 1, Series 2003,
5.000%, 8/01/19 - MBIA Insured
150 Rialto Redevelopment Agency, California, Tax Allocation Bonds, 9/15 at 100.00 AAA 156,162
Merged Project Area, Series 2005A, 5.000%, 9/01/35 -
XLCA Insured
315 Riverside County Public Financing Authority, California, 10/15 at 100.00 AAA 328,019
Tax Allocation Bonds, Multiple Projects, Series 2005A,
5.000%, 10/01/35 - XLCA Insured
San Buenaventura, California, Certificates of Participation,
Golf Course Financing Project, Series 2002D:
3,000 5.000%, 2/01/27 - AMBAC Insured 2/12 at 100.00 AAA 3,114,270
3,300 5.000%, 2/01/32 - AMBAC Insured 2/12 at 100.00 AAA 3,412,959
1,200 San Diego Redevelopment Agency, California, Subordinate 9/09 at 101.00 Baa2 1,241,340
Lien Tax Increment and Parking Revenue Bonds, Centre City
Project, Series 2003B, 5.250%, 9/01/26
59
Nuveen Insured California Tax-Free Advantage Municipal Fund (NKX) (continued)
Portfolio of INVESTMENTS February 28, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 2,770 San Jose Financing Authority, California, Lease Revenue 6/12 at 100.00 AAA $ 2,867,836
Refunding Bonds, Civic Center Project, Series 2002B,
5.000%, 6/01/32 - AMBAC Insured
1,220 San Jose Redevelopment Agency, California, Tax Allocation 8/10 at 101.00 AAA 1,262,566
Bonds, Merged Area Redevelopment Project, Series 2002,
5.000%, 8/01/32 - MBIA Insured
2,390 Solano County, California, Certificates of Participation, 11/12 at 100.00 AAA 2,581,224
Series 2002, 5.250%, 11/01/24 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
35,970 Total Tax Obligation/Limited 37,730,596
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 13.9% (9.4% OF TOTAL INVESTMENTS)
5,480 Bay Area Governments Association, California, BART SFO 8/12 at 100.00 AAA 5,713,503
Extension, Airport Premium Fare Revenue Bonds,
Series 2002A, 5.000%, 8/01/26 - AMBAC Insured
2,000 Foothill/Eastern Transportation Corridor Agency, California, 1/10 at 100.00 BBB- 1,962,420
Toll Road Revenue Bonds, Series 1995A, 5.000%, 1/01/35
1,300 San Francisco Airports Commission, California, Revenue Bonds, 5/10 at 101.00 AAA 1,376,947
San Francisco International Airport, Second Series 2000,
Issue 26B, 5.000%, 5/01/25 - FGIC Insured
3,135 San Francisco Airports Commission, California, Revenue Bonds, 5/08 at 101.00 AAA 3,256,889
San Francisco International Airport, Second Series Issue 16B,
5.000%, 5/01/24 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
11,915 Total Transportation 12,309,759
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 1.4% (0.8% OF TOTAL INVESTMENTS) (4)
1,000 California Health Facilities Financing Authority, Revenue Bonds, 12/09 at 101.00 A3 (4) 1,108,950
Cedars-Sinai Medical Center, Series 1999A,
6.250%, 12/01/34 (Pre-refunded 12/01/09)
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 5.6% (3.8% OF TOTAL INVESTMENTS)
1,000 Anaheim Public Finance Authority, California, Second Lien 10/14 at 100.00 AAA 1,089,710
Electric Distribution Revenue Bonds, Series 2004,
5.250%, 10/01/21 - MBIA Insured
3,055 Los Angeles Department of Water and Power, California, 7/11 at 100.00 AAA 3,265,642
Power System Revenue Bonds, Series 2001A-1,
5.250%, 7/01/22 - FSA Insured
275 Los Angeles Department of Water and Power, California, 7/13 at 100.00 AAA 292,691
Power System Revenue Bonds, Series 2003A-2,
5.000%, 7/01/21 - MBIA Insured
310 Merced Irrigation District, California, Electric System Revenue 9/15 at 100.00 AAA 327,431
Bonds, Series 2005, 5.125%, 9/01/31 - XLCA Insured
------------------------------------------------------------------------------------------------------------------------------------
4,640 Total Utilities 4,975,474
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 11.2% (7.6% OF TOTAL INVESTMENTS)
1,185 Manteca Financing Authority, California, Sewerage Revenue 12/13 at 100.00 Aaa 1,191,340
Bonds, Series 2003B, 5.000%, 12/01/33 - MBIA Insured
San Diego Public Facilities Financing Authority, California,
Subordinate Lien Water Revenue Bonds, Series 2002:
3,000 5.000%, 8/01/22 - MBIA Insured 8/12 at 100.00 AAA 3,192,540
2,500 5.000%, 8/01/23 - MBIA Insured 8/12 at 100.00 AAA 2,658,975
60
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 1,180 South Feather Water and Power Agency, California, Water 4/13 at 100.00 BBB $ 1,219,247
Revenue Certificates of Participation, Solar Photovoltaic
Project, Series 2003, 5.375%, 4/01/24
1,600 Sunnyvale Financing Authority, California, Water and 10/11 at 100.00 AAA 1,664,352
Wastewater Revenue Bonds, Series 2001, 5.000%, 10/01/26 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
9,465 Total Water and Sewer 9,926,454
------------------------------------------------------------------------------------------------------------------------------------
$ 123,555 Total Long-Term Investments (cost $124,286,983) - 147.8% 130,448,923
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 1.1% (0.7% OF TOTAL INVESTMENTS)
1,000 California Department of Water Resources, Power Supply VMIG-1 1,000,000
Revenue Bonds, Variable Rate Demand Obligations,
Series 2002C-7, 3.150%, 5/01/22 - FSA Insured (5)
------------------------------------------------------------------------------------------------------------------------------------
$ 1,000 Total Short-Term Investments (cost $1,000,000) 1,000,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $125,286,983) - 148.9% 131,448,923
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.1% 1,844,283
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (51.0)% (45,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 88,293,206
====================================================================================================================
At least 80% of the Fund's net assets (including net assets
attributable to Preferred shares) are invested in municipal
securities that are either covered by Original Issue
Insurance, Secondary Market Insurance or Portfolio Insurance
which ensures the timely payment of principal and interest.
Up to 20% of the Fund's net assets (including net assets
attributable to Preferred shares) may be invested in
municipal securities that are (i) either backed by an escrow
or trust containing sufficient U.S. Government or U.S.
Government agency securities (also ensuring the timely
payment of principal and interest), or (ii) rated, at the
time of investment, within the four highest grades (Baa or
BBB or better by Moody's, S&P or Fitch) or unrated but
judged to be of comparable quality by the Adviser.
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices
of the earliest optional call or redemption. There may be
other call provisions at varying prices at later dates.
Certain mortgage-backed securities may be subject to
periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's or Moody's
rating. Ratings below BBB by Standard & Poor's Group or Baa
by Moody's Investor Service, Inc. are considered to be below
investment grade.
(4) Investment is backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensure the timely payment of principal and
interest. Such investments are normally considered to be
equivalent to AAA rated securities.
(5) Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term investment. The rate disclosed is that in effect
at the end of the reporting period. This rate changes
periodically based on market conditions or a specified
market index.
See accompanying notes to financial statements.
61
Statement of
ASSETS AND LIABILITIES February 28, 2006 (Unaudited)
INSURED INSURED CALIFORNIA CALIFORNIA
CALIFORNIA CALIFORNIA PREMIUM DIVIDEND
PREMIUM INCOME PREMIUM INCOME 2 INCOME ADVANTAGE
(NPC) (NCL) (NCU) (NAC)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $133,196,250,
$267,686,107, $120,575,075 and
$504,598,945, respectively) $144,447,731 $283,219,005 $126,880,312 $537,687,449
Cash -- -- -- --
Receivables:
Interest 2,345,807 3,719,909 1,572,673 7,421,796
Investments sold -- 145,000 -- --
Other assets 9,021 31,505 6,638 43,182
------------------------------------------------------------------------------------------------------------------------------------
Total assets 146,802,559 287,115,419 128,459,623 545,152,427
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 335,885 388,295 325,685 1,986,727
Payable for investments purchased -- -- -- --
Accrued expenses:
Management fees 71,301 138,104 62,533 175,155
Other 41,454 58,873 41,053 108,804
Preferred share dividends payable 21,150 45,926 3,415 49,766
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 469,790 631,198 432,686 2,320,452
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 45,000,000 95,000,000 43,000,000 175,000,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $101,332,769 $191,484,221 $ 85,026,937 $367,831,975
====================================================================================================================================
Common shares outstanding 6,448,935 12,716,370 5,774,216 23,431,829
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 15.71 $ 15.06 $ 14.73 $ 15.70
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 64,489 $ 127,164 $ 57,742 $ 234,318
Paid-in surplus 89,255,103 176,226,128 78,298,267 332,822,117
Undistributed (Over-distribution of) net investment income 710,010 514,136 286,025 1,334,791
Accumulated net realized gain (loss) from investments
and derivative transactions 51,686 (916,105) 79,666 352,245
Net unrealized appreciation (depreciation ) of investments 11,251,481 15,532,898 6,305,237 33,088,504
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $101,332,769 $191,484,221 $ 85,026,937 $367,831,975
====================================================================================================================================
Authorized shares:
Common 200,000,000 200,000,000 Unlimited Unlimited
Preferred 1,000,000 1,000,000 Unlimited Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
62
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
DIVIDEND DIVIDEND DIVIDEND TAX-FREE
ADVANTAGE 2 ADVANTAGE 3 ADVANTAGE ADVANTAGE
(NVX) (NZH) (NKL) (NKX)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $315,951,642,
$524,193,773, $330,513,874 and
$125,286,983, respectively) $334,050,164 $548,220,510 $352,802,696 $131,448,923
Cash -- -- -- 463,193
Receivables:
Interest 4,352,058 7,670,193 4,049,649 1,455,142
Investments sold -- -- -- --
Other assets 18,192 20,895 17,111 772
------------------------------------------------------------------------------------------------------------------------------------
Total assets 338,420,414 555,911,598 356,869,456 133,368,030
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 320,457 2,114,843 635,312 --
Payable for investments purchased -- 2,200,603 -- --
Accrued expenses:
Management fees 84,766 135,380 89,007 32,396
Other 53,269 84,138 56,026 22,950
Preferred share dividends payable 14,288 49,107 41,388 19,478
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 472,780 4,584,071 821,733 74,824
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 110,000,000 187,000,000 118,000,000 45,000,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $227,947,634 $364,327,527 $238,047,723 $ 88,293,206
====================================================================================================================================
Common shares outstanding 14,790,660 24,112,833 15,259,759 5,883,302
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 15.41 $ 15.11 $ 15.60 $ 15.01
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 147,907 $ 241,128 $ 152,598 $ 58,833
Paid-in surplus 210,049,075 342,513,152 216,622,492 83,000,891
Undistributed (Over-distribution of) net investment income 665,037 1,209,445 514,606 (134,325)
Accumulated net realized gain (loss) from investments
and derivative transactions (1,012,907) (3,662,935) (1,530,795) (794,133)
Net unrealized appreciation (depreciation) of investments 18,098,522 24,026,737 22,288,822 6,161,940
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $227,947,634 $364,327,527 $238,047,723 $ 88,293,206
====================================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
63
Statement of
OPERATIONS Six Months Ended February 28, 2006 (Unaudited)
INSURED INSURED CALIFORNIA CALIFORNIA
CALIFORNIA CALIFORNIA PREMIUM DIVIDEND
PREMIUM INCOME PREMIUM INCOME 2 INCOME ADVANTAGE
(NPC) (NCL) (NCU) (NAC)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 3,544,967 $6,843,302 $3,081,342 $13,403,800
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 463,474 893,595 404,837 1,672,534
Preferred shares - auction fees 55,861 117,928 53,378 216,636
Preferred shares - dividend disbursing agent fees 4,959 9,918 4,959 9,918
Shareholders' servicing agent fees and expenses 5,387 8,155 3,898 2,948
Custodian's fees and expenses 17,749 40,281 18,103 71,294
Directors'/Trustees' fees and expenses 1,580 3,185 1,376 5,980
Professional fees 6,469 8,731 6,106 10,981
Shareholders' reports - printing and mailing expenses 6,028 17,274 5,577 22,635
Stock exchange listing fees 5,153 5,191 244 5,149
Investor relations expense 8,969 11,278 7,881 19,738
Other expenses 7,385 12,263 7,484 13,250
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense reimbursement 583,014 1,127,799 513,843 2,051,063
Custodian fee credit (6,573) (4,618) (5,946) (3,653)
Expense reimbursement -- -- -- (537,475)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 576,441 1,123,181 507,897 1,509,935
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 2,968,526 5,720,121 2,573,445 11,893,865
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments 51,642 454,270 161,291 743,048
Net realized gain (loss) from forward swaps -- -- -- --
Change in net unrealized appreciation (depreciation)
of investments (1,914,472) (3,443,641) (1,567,253) (5,217,669)
Change in net unrealized appreciation (depreciation)
of forward swaps -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) (1,862,830) (2,989,371) (1,405,962) (4,474,621)
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (482,616) (1,105,678) (522,487) (2,167,518)
From accumulated net realized gains from investments (120,330) -- (11,180) (111,335)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (602,946) (1,105,678) (533,667) (2,278,853)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares
from operations $ 502,750 $1,625,072 $ 633,816 $ 5,140,391
====================================================================================================================================
See accompanying notes to financial statements.
64
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
DIVIDEND DIVIDEND DIVIDEND TAX-FREE
ADVANTAGE 2 ADVANTAGE 3 ADVANTAGE ADVANTAGE
(NVX) (NZH) (NKL) (NKX)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $7,998,547 $13,001,497 $8,527,683 $3,116,817
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 1,049,622 1,691,447 1,102,562 419,379
Preferred shares - auction fees 136,171 232,132 146,074 55,861
Preferred shares - dividend disbursing agent fees 9,918 9,918 9,918 4,959
Shareholders' servicing agent fees and expenses 1,340 2,223 1,342 626
Custodian's fees and expenses 44,774 63,220 43,671 17,974
Directors'/Trustees' fees and expenses 3,696 6,164 4,031 1,391
Professional fees 9,600 12,866 9,795 6,281
Shareholders' reports - printing and mailing expenses 17,485 24,394 17,814 7,136
Stock exchange listing fees 624 1,018 644 248
Investor relations expense 13,071 19,901 13,636 7,752
Other expenses 10,943 14,478 10,228 7,594
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and
expense reimbursement 1,297,244 2,077,761 1,359,715 529,201
Custodian fee credit (4,664) (10,471) (2,603) (4,556)
Expense reimbursement (500,928) (815,635) (526,766) (210,021)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 791,652 1,251,655 830,346 314,624
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 7,206,895 11,749,842 7,697,337 2,802,193
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments 82,574 592,560 176,495 98,766
Net realized gain (loss) from forward swaps -- -- 772,782 297,454
Change in net unrealized appreciation (depreciation)
of investments (2,661,990) (4,457,223) (3,961,934) (1,491,009)
Change in net unrealized appreciation (depreciation)
of forward swaps -- -- 191,673 72,274
------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) (2,579,416) (3,864,663) (2,820,984) (1,022,515)
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (1,386,318) (2,402,581) (1,490,504) (534,410)
From accumulated net realized gains from investments -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (1,386,318) (2,402,581) (1,490,504) (534,410)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares
from operations $3,241,161 $ 5,482,598 $3,385,849 $1,245,268
====================================================================================================================================
See accompanying notes to financial statements.
65
Statement of
CHANGES IN NET ASSETS (Unaudited)
INSURED CALIFORNIA INSURED CALIFORNIA CALIFORNIA
PREMIUM INCOME (NPC) PREMIUM INCOME 2 (NCL) PREMIUM INCOME (NCU)
------------------------------- ------------------------------- -------------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED 2/28/06 8/31/05 ENDED 2/28/06 8/31/05 ENDED 2/28/06 8/31/05
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 2,968,526 $ 6,103,373 $ 5,720,121 $ 11,662,340 $2,573,445 $ 5,201,876
Net realized gain (loss)
from investments 51,642 1,025,239 454,270 572,385 161,291 986,152
Net realized gain (loss) from
forward swaps -- -- -- -- -- --
Change in net unrealized
appreciation (depreciation)
of investments (1,914,472) 347,962 (3,443,641) 3,008,579 (1,567,253) 2,456,342
Change in net unrealized appreciation
(depreciation) of forward swaps -- -- -- -- -- --
Distributions to Preferred
Shareholders:
From net investment income (482,616) (659,626) (1,105,678) (1,431,484) (522,487) (676,918)
From accumulated net realized
gains from investments (120,330) (53,379) -- -- (11,180) --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 502,750 6,763,569 1,625,072 13,811,820 633,816 7,967,452
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (2,798,194) (5,939,147) (5,035,683) (11,212,178) (2,321,235) (4,954,280)
From accumulated net
realized gains (881,569) (1,006,068) -- -- (70,445) --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions to
Common shareholders (3,679,763) (6,945,215) (5,035,683) (11,212,178) (2,391,680) (4,954,280)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions -- 73,727 -- 260,359 -- --
Preferred shares offering
costs adjustments -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
capital share transactions -- 73,727 -- 260,359 -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (3,177,013) (107,919) (3,410,611) 2,860,001 (1,757,864) 3,013,172
Net assets applicable to Common
shares at the beginning
of period 104,509,782 104,617,701 194,894,832 192,034,831 86,784,801 83,771,629
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to
Common shares at the
end of period $101,332,769 $104,509,782 $191,484,221 $194,894,832 $85,026,937 $86,784,801
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income
at the end of period $ 710,010 $ 1,022,294 $ 514,136 $ 935,376 $ 286,025 $ 556,302
====================================================================================================================================
See accompanying notes to financial statements.
66
CALIFORNIA CALIFORNIA CALIFORNIA
DIVIDEND ADVANTAGE (NAC) DIVIDEND ADVANTAGE 2 (NVX) DIVIDEND ADVANTAGE 3 (NZH)
------------------------------- ------------------------------- -------------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED 2/28/06 8/31/05 ENDED 2/28/06 8/31/05 ENDED 2/28/06 8/31/05
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 11,893,865 $ 24,302,547 $ 7,206,895 $ 14,459,716 $ 11,749,842 $ 23,508,682
Net realized gain (loss)
from investments 743,048 480,737 82,574 383,423 592,560 462,942
Net realized gain (loss) from
forward swaps -- -- -- -- -- --
Change in net unrealized
appreciation (depreciation)
of investments (5,217,669) 11,381,369 (2,661,990) 10,159,524 (4,457,223) 15,832,228
Change in net unrealized appreciation
(depreciation) of forward swaps -- -- -- -- -- --
Distributions to Preferred
Shareholders:
From net investment income (2,167,518) (2,855,101) (1,386,318) (1,768,569) (2,402,581) (3,098,457)
From accumulated net realized
gains from investments (111,335) (64,137) -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 5,140,391 33,245,415 3,241,161 23,234,094 5,482,598 36,705,395
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (11,032,910) (23,037,818) (6,433,938) (13,489,083) (10,416,743) (20,833,488)
From accumulated net
realized gains (782,285) (1,086,300) -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions to
Common shareholders (11,815,195) (24,124,118) (6,433,938) (13,489,083) (10,416,743) (20,833,488)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions 242,036 77,239 -- -- -- --
Preferred shares offering
costs adjustments -- -- -- -- -- 29,546
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
capital share transactions 242,036 77,239 -- -- -- 29,546
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (6,432,768) 9,198,536 (3,192,777) 9,745,011 (4,934,145) 15,901,453
Net assets applicable to Common
shares at the beginning
of period 374,264,743 365,066,207 231,140,411 221,395,400 369,261,672 353,360,219
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to
Common shares at the
end of period $367,831,975 $374,264,743 $227,947,634 $231,140,411 $364,327,527 $369,261,672
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income
at the end of period $ 1,334,791 $ 2,641,354 $ 665,037 $ 1,278,398 $ 1,209,445 $ 2,278,927
====================================================================================================================================
See accompanying notes to financial statements.
67
Statement of
CHANGES IN NET ASSETS (Unaudited) (continued)
INSURED CALIFORNIA INSURED CALIFORNIA
DIVIDEND ADVANTAGE (NKL) TAX-FREE ADVANTAGE (NKX)
-------------------------------- -----------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED 2/28/06 8/31/05 ENDED 2/28/06 8/31/05
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 7,697,337 $ 15,469,138 $ 2,802,193 $ 5,637,385
Net realized gain (loss) from investments 176,495 750,281 98,766 161,272
Net realized gain (loss) from
forward swaps 772,782 (2,892,459) 297,454 (1,073,407)
Change in net unrealized appreciation
(depreciation) of investments (3,961,934) 9,357,072 (1,491,009) 4,006,973
Change in net unrealized appreciation
(depreciation) of forward swaps 191,673 809,703 72,274 288,851
Distributions to Preferred Shareholders:
From net investment income (1,490,504) (1,886,679) (534,410) (753,416)
From accumulated net realized
gains from investments -- (45,704) -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 3,385,849 21,561,352 1,245,268 8,267,658
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (6,592,217) (13,733,781) (2,223,887) (5,003,747)
From accumulated net realized gains -- (759,922) -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions to
Common shareholders (6,592,217) (14,493,703) (2,223,887) (5,003,747)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions -- -- -- --
Preferred shares offering
costs adjustments -- (54) -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
capital share transactions -- (54) -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (3,206,368) 7,067,595 (978,619) 3,263,911
Net assets applicable to Common
shares at the beginning of period 241,254,091 234,186,496 89,271,825 86,007,914
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $238,047,723 $241,254,091 $88,293,206 $89,271,825
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income
at the end of period $ 514,606 $ 899,990 $ (134,325) $ (178,221)
====================================================================================================================================
See accompanying notes to financial statements.
68
Notes to
FINANCIAL STATEMENTS (Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The California funds (the "Funds") covered in this report and their
corresponding Common share stock exchange symbols are Nuveen Insured California
Premium Income Municipal Fund, Inc. (NPC), Nuveen Insured California Premium
Income Municipal Fund 2, Inc. (NCL), Nuveen California Premium Income Municipal
Fund (NCU), Nuveen California Dividend Advantage Municipal Fund (NAC), Nuveen
California Dividend Advantage Municipal Fund 2 (NVX), Nuveen California Dividend
Advantage Municipal Fund 3 (NZH), Nuveen Insured California Dividend Advantage
Municipal Fund (NKL) and Nuveen Insured California Tax-Free Advantage Municipal
Fund (NKX). Common shares of Insured California Premium Income (NPC), Insured
California Premium Income 2 (NCL) and California Dividend Advantage (NAC) are
traded on the New York Stock Exchange while Common shares of California Premium
Income (NCU), California Dividend Advantage 2 (NVX), California Dividend
Advantage 3 (NZH), Insured California Dividend Advantage (NKL) and Insured
California Tax-Free Advantage (NKX) are traded on the American Stock Exchange.
The Funds are registered under the Investment Company Act of 1940, as amended,
as closed-end management investment companies.
Each Fund seeks to provide current income exempt from both regular federal and
California state income taxes, and in the case of Insured California Tax-Free
Advantage (NKX) the alternative minimum tax applicable to individuals, by
investing primarily in a diversified portfolio of municipal obligations issued
by state and local government authorities within the state of California or
certain U.S. territories.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with U.S.
generally accepted accounting principles.
Investment Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors/Trustees. When
market price quotes are not readily available (which is usually the case for
municipal securities), the pricing service establishes fair market value based
on yields or prices of municipal bonds of comparable quality, type of issue,
coupon, maturity and rating, indications of value from securities dealers,
evaluations of anticipated cash flows or collateral and general market
conditions. Prices of derivative investments are also provided by an independent
pricing service approved by each Fund's Board of Directors/Trustees. If the
pricing service is unable to supply a price for a municipal bond or derivative
investment, each Fund may use a market price or fair market value quote provided
by a major broker/dealer in such investments. If it is determined that the
market price or fair market value for an investment are unavailable or
inappropriate, the Board of Directors/Trustees of the Funds, or its designee,
may establish a fair value for the investment. Temporary investments in
securities that have variable rate and demand features qualifying them as
short-term securities are valued at amortized cost, which approximates market
value.
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and
losses from transactions are determined on the specific identification method.
Investments purchased on a when-issued or delayed delivery basis may have
extended settlement periods. Any investments so purchased are subject to market
fluctuation during this period. The Funds have instructed the custodian to
segregate assets with a current value at least equal to the amount of the
when-issued and delayed delivery purchase commitments. At February 28, 2006,
there were no such outstanding purchase commitments in any of the Funds.
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
Investment income also includes paydown gains and losses, if any.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute substantially all net investment income and net capital
gains to shareholders and to otherwise comply with the requirements of
Subchapter M of the Internal Revenue Code applicable to regulated investment
companies. Therefore, no federal income tax provision is required. Furthermore,
each Fund intends to satisfy conditions which will enable interest from
municipal securities, which is exempt from regular federal and California state
income taxes, and in the case of Insured California Tax-Free Advantage (NKX) the
alternative minimum tax applicable to individuals, to retain such tax-exempt
status when distributed to shareholders of the Funds. Net realized capital gains
and ordinary income distributions paid by the Funds are subject to federal
taxation.
69
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
Dividends and Distributions to Common Shareholders
Dividends from tax-exempt net investment income are declared monthly. Net
realized capital gains and/or market discount from investment transactions, if
any, are distributed to shareholders not less frequently than annually.
Furthermore, capital gains are distributed only to the extent they exceed
available capital loss carryforwards.
Distributions to Common shareholders of tax-exempt net investment income, net
realized capital gains and/or market discount, if any, are recorded on the
ex-dividend date. The amount and timing of distributions are determined in
accordance with federal income tax regulations, which may differ from U.S.
generally accepted accounting principles.
Preferred Shares
The Funds have issued and outstanding Preferred shares, $25,000 stated value per
share, as a means of effecting financial leverage. Each Fund's Preferred shares
are issued in one or more Series. The dividend rate paid by the Funds on each
Series is determined every seven days, pursuant to a dutch auction process
overseen by the auction agent, and is payable at the end of each rate period.
The number of Preferred shares outstanding, by Series and in total, for each
Fund is as follows:
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
PREMIUM PREMIUM PREMIUM DIVIDEND
INCOME INCOME 2 INCOME ADVANTAGE
(NPC) (NCL) (NCU) (NAC)
--------------------------------------------------------------------------------
Number of shares:
Series M -- -- 1,720 --
Series T 1,800 1,900 -- --
Series TH -- 1,900 -- 3,500
Series F -- -- -- 3,500
--------------------------------------------------------------------------------
Total 1,800 3,800 1,720 7,000
================================================================================
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
DIVIDEND DIVIDEND DIVIDEND TAX-FREE
ADVANTAGE 2 ADVANTAGE 3 ADVANTAGE ADVANTAGE
(NVX) (NZH) (NKL) (NKX)
--------------------------------------------------------------------------------
Number of shares:
Series M 2,200 3,740 -- --
Series T -- -- 2,360 --
Series TH -- 3,740 -- 1,800
Series F 2,200 -- 2,360 --
--------------------------------------------------------------------------------
Total 4,400 7,480 4,720 1,800
================================================================================
Insurance
Insured California Premium Income (NPC) and Insured California Premium Income 2
(NCL) invest only in municipal securities which are either covered by insurance
or are backed by an escrow or trust account containing sufficient U.S.
Government or U.S. Government agency securities, both of which ensure the timely
payment of principal and interest.
Insured California Dividend Advantage (NKL) and Insured California Tax-Free
Advantage (NKX) invest at least 80% of their net assets (including net assets
attributable to Preferred shares) in municipal securities that are covered by
insurance. Each Fund may also invest up to 20% of its net assets (including net
assets attributable to Preferred shares) in municipal securities which are
either (i) backed by an escrow or trust containing sufficient U.S. Government or
U.S. Government agency securities, or (ii) rated, at the time of investment,
within the four highest grades (Baa or BBB or better by Moody's, S&P or Fitch)
or unrated but judged to be of comparable quality by the Adviser.
Each insured municipal security is covered by Original Issue Insurance,
Secondary Market Insurance or Portfolio Insurance. Such insurance does not
guarantee the market value of the municipal securities or the value of the
Funds' Common shares. Original Issue
70
Insurance and Secondary Market Insurance remain in effect as long as the
municipal securities covered thereby remain outstanding and the insurer remains
in business, regardless of whether the Funds ultimately dispose of such
municipal securities. Consequently, the market value of the municipal securities
covered by Original Issue Insurance or Secondary Market Insurance may reflect
value attributable to the insurance. Portfolio Insurance, in contrast, is
effective only while the municipal securities are held by the Funds.
Accordingly, neither the prices used in determining the market value of the
underlying municipal securities nor the Common share net asset value of the
Funds include value, if any, attributable to the Portfolio Insurance. Each
policy of the Portfolio Insurance does, however, give the Funds the right to
obtain permanent insurance with respect to the municipal security covered by the
Portfolio Insurance policy at the time of its sale.
Forward Swap Transactions
The Funds are authorized to invest in certain derivative financial instruments.
The Funds' use of forward interest rate swap transactions is intended to
mitigate the negative impact that an increase in long-term interest rates could
have on Common share net asset value. Forward interest rate swap transactions
involve each Fund's agreement with the counterparty to pay, in the future, a
fixed rate payment in exchange for the counterparty paying the Fund a variable
rate payment, the accruals for which would begin at a specified date in the
future (the "effective date"). The amount of the payment obligation is based on
the notional amount of the forward swap contract, and would increase or decrease
in value based primarily on the extent to which long-term interest rates for
bonds having a maturity of the swaps' termination date were to increase or
decrease. The Funds may close out a contract prior to the effective date, at
which point a realized gain or loss would be recognized. When a forward swap is
terminated, it ordinarily does not involve the delivery of securities or other
underlying assets or principal, but rather is settled in cash on a net basis.
Each Fund intends, but is not obligated to, terminate its forward swaps before
the effective date. Accordingly, the risk of loss with respect to the swap
counterparty on such transactions is limited to the credit risk associated with
a counterparty failing to honor its commitment to pay any realized gain to the
Fund upon termination. To minimize such credit risk, all counterparties are
required to pledge collateral daily (based on the daily valuation of each swap)
on behalf of each Fund with a value approximately equal to the amount of any
unrealized gain above a pre-determined threshold. Reciprocally, when any of the
Funds have an unrealized loss on a swap contract, the Funds have instructed the
custodian to pledge assets of the Funds as collateral with a value approximately
equal to the amount of the unrealized loss above a pre-determined threshold.
Collateral pledges are monitored and subsequently adjusted if and when the swap
valuations fluctuate, either up or down, by at least the predetermined threshold
amount. At February 28, 2006, the Funds did not have any forward swap contracts
outstanding.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by credits earned on each Fund's cash on deposit
with the bank. Such deposit arrangements are an alternative to overnight
investments.
Indemnifications
Under the Funds' organizational documents, their Officers and Directors/Trustees
are indemnified against certain liabilities arising out of the performance of
their duties to the Funds. In addition, in the normal course of business, the
Funds enter into contracts that provide general indemnifications to other
parties. The Funds' maximum exposure under these arrangements is unknown as this
would involve future claims that may be made against the Funds that have not yet
occurred. However, the Funds have not had prior claims or losses pursuant to
these contracts and expect the risk of loss to be remote.
Use of Estimates
The preparation of financial statements in conformity with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of increases and
decreases in net assets applicable to Common shares from operations during the
reporting period. Actual results may differ from those estimates.
2. FUND SHARES
Transactions in Common shares were as follows:
INSURED CALIFORNIA INSURED CALIFORNIA CALIFORNIA
PREMIUM INCOME (NPC) PREMIUM INCOME 2 (NCL) PREMIUM INCOME (NCU)
----------------------- ----------------------- ------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
2/28/06 8/31/05 2/28/06 8/31/05 2/28/06 8/31/05
------------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due to
reinvestment of
distributions -- 4,473 -- 16,994 -- --
============================================================================================================
CALIFORNIA DIVIDEND CALIFORNIA DIVIDEND CALIFORNIA DIVIDEND
ADVANTAGE (NAC) ADVANTAGE 2 (NVX) ADVANTAGE 3 (NZH)
----------------------- ------------------------ ------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
2/28/06 8/31/05 2/28/06 8/31/05 2/28/06 8/31/05
------------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due to
reinvestment of
distributions 14,967 4,849 -- -- -- --
============================================================================================================
71
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
INSURED INSURED
CALIFORNIA DIVIDEND CALIFORNIA TAX-FREE
ADVANTAGE (NKL) ADVANTAGE (NKX)
------------------------ ------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED
2/28/06 8/31/05 2/28/06 8/31/05
------------------------------------------------------------------------------------------------------------
Common shares issued to shareholders
due to reinvestment of distributions -- -- -- --
============================================================================================================
3. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities but excluding short-term investments
and derivative transactions) during the six months ended February 28, 2006, were
as follows:
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
PREMIUM PREMIUM PREMIUM DIVIDEND
INCOME INCOME 2 INCOME ADVANTAGE
(NPC) (NCL) (NCU) (NAC)
---------------------------------------------------------------------------------------------------------
Purchases $5,876,461 $12,448,606 $5,077,166 $16,821,216
Sales and maturities 3,725,630 14,427,924 5,037,763 18,391,830
=========================================================================================================
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
DIVIDEND DIVIDEND DIVIDEND TAX-FREE
ADVANTAGE 2 ADVANTAGE 3 ADVANTAGE ADVANTAGE
(NVX) (NZH) (NKL) (NKX)
---------------------------------------------------------------------------------------------------------
Purchases $4,161,839 $15,250,205 $1,454,258 $ 543,409
Sales and maturities 6,243,429 16,447,501 3,586,739 2,352,736
=========================================================================================================
4. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to the treatment of paydown gains and losses, timing differences
in recognizing taxable market discount and timing differences in recognizing
certain gains and losses on investment transactions.
At February 28, 2006, the cost of investments was as follows:
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
PREMIUM PREMIUM PREMIUM DIVIDEND
INCOME INCOME 2 INCOME ADVANTAGE
(NPC) (NCL) (NCU) (NAC)
---------------------------------------------------------------------------------------------------------
Cost of investments $133,102,223 $267,537,327 $120,513,344 $504,392,038
=========================================================================================================
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
DIVIDEND DIVIDEND DIVIDEND TAX-FREE
ADVANTAGE 2 ADVANTAGE 3 ADVANTAGE ADVANTAGE
(NVX) (NZH) (NKL) (NKX)
---------------------------------------------------------------------------------------------------------
Cost of investments $315,938,931 $524,183,125 $332,569,428 $126,251,144
=========================================================================================================
72
Gross unrealized appreciation and gross unrealized depreciation of investments
at February 28, 2006, were as follows:
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
PREMIUM PREMIUM PREMIUM DIVIDEND
INCOME INCOME 2 INCOME ADVANTAGE
(NPC) (NCL) (NCU) (NAC)
---------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $11,352,111 $15,794,302 $6,388,739 $33,331,484
Depreciation (6,603) (112,624) (21,771) (36,073)
---------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation)
of investments $11,345,508 $15,681,678 $6,366,968 $33,295,411
=========================================================================================================
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
DIVIDEND DIVIDEND DIVIDEND TAX-FREE
ADVANTAGE 2 ADVANTAGE 3 ADVANTAGE ADVANTAGE
(NVX) (NZH) (NKL) (NKX)
---------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $18,294,414 $24,492,695 $22,461,648 $6,174,634
Depreciation (183,181) (455,310) (2,228,380) (976,855)
---------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation)
of investments $18,111,233 $24,037,385 $20,233,268 $5,197,779
=========================================================================================================
The tax components of undistributed net investment income and net realized gains
at August 31, 2005, the Funds' last tax year end, were as follows:
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
PREMIUM PREMIUM PREMIUM DIVIDEND
INCOME INCOME 2 INCOME ADVANTAGE
(NPC) (NCL) (NCU) (NAC)
---------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income * $1,335,929 $1,691,142 $907,928 $4,426,425
Undistributed net ordinary income ** 79,252 3,248 -- --
Undistributed net long-term capital gains 1,001,943 -- -- 502,817
=========================================================================================================
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
DIVIDEND DIVIDEND DIVIDEND TAX-FREE
ADVANTAGE 2 ADVANTAGE 3 ADVANTAGE ADVANTAGE
(NVX) (NZH) (NKL) (NKX)
---------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income * $2,408,781 $4,056,605 $1,872,014 $221,141
Undistributed net ordinary income ** -- -- -- --
Undistributed net long-term capital gains -- -- -- --
=========================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on August 1, 2005, paid on September 1, 2005.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
The tax character of distributions paid during the tax year ended August 31,
2005, the Funds' last tax year end, was designated for purposes of the dividends
paid deduction as follows:
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
PREMIUM PREMIUM PREMIUM DIVIDEND
INCOME INCOME 2 INCOME ADVANTAGE
(NPC) (NCL) (NCU) (NAC)
---------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $6,520,209 $12,725,281 $5,644,396 $25,851,246
Distributions from net ordinary income ** 377,496 -- -- --
Distributions from net long-term capital gains 785,476 -- -- 1,150,437
=========================================================================================================
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
DIVIDEND DIVIDEND DIVIDEND TAX-FREE
ADVANTAGE 2 ADVANTAGE 3 ADVANTAGE ADVANTAGE
(NVX) (NZH) (NKL) (NKX)
---------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $15,245,298 $23,895,351 $15,677,229 $5,801,023
Distributions from net ordinary income ** -- -- 116,229 --
Distributions from net long-term capital gains -- -- 689,397 --
=========================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
73
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
At August 31, 2005, the Funds' last tax year end, the following Funds had unused
capital loss carryforwards available for federal income tax purposes to be
applied against future capital gains, if any. If not applied, the carryforwards
will expire as follows:
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
PREMIUM DIVIDEND DIVIDEND TAX-FREE
INCOME 2 ADVANTAGE 2 ADVANTAGE 3 ADVANTAGE
(NCL) (NVX) (NZH) (NKX)
--------------------------------------------------------------------------------
Expiration year:
2009 $930,352 $ -- $ -- $ --
2010 440,510 -- -- --
2011 -- -- 3,931,655 216,849
2012 -- 1,095,481 323,840 --
--------------------------------------------------------------------------------
Total $1,370,862 $1,095,481 $4,255,495 $216,849
================================================================================
Insured California Dividend Advantage (NKL) elected to defer net realized losses
from investments incurred from November 1, 2004 through August 31, 2005
("post-October losses") in accordance with Federal income tax regulations.
Post-October losses of $259,334 were treated as having arisen on the first day
of the current fiscal year.
5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Each Fund's management fee is separated into two components - a complex-level
component, based on the aggregate amount of all fund assets managed by Nuveen
Asset Management (the "Adviser"), a wholly owned subsidary of Nuveen
Investments, Inc., and a specific fund-level component, based only on the amount
of assets within each individual fund. This pricing structure enables Nuveen
fund shareholders to benefit from growth in the assets within each individual
fund as well as from growth in the amount of complex-wide assets managed by the
Adviser.
The annual fund-level fee, payable monthly, for each Fund is based upon the
average daily net assets (including net assets attributable to Preferred shares)
of each Fund as follows:
INSURED CALIFORNIA PREMIUM INCOME (NPC)
AVERAGE DAILY NET ASSETS INSURED CALIFORNIA PREMIUM INCOME 2 (NCL)
(INCLUDING NET ASSETS ATTRIBUTABLE CALIFORNIA PREMIUM INCOME (NCU)
TO PREFERRED SHARES) FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For the next $3 billion .3875
For net assets over $5 billion .3750
================================================================================
CALIFORNIA DIVIDEND ADVANTAGE (NAC)
CALIFORNIA DIVIDEND ADVANTAGE 2 (NVX)
CALIFORNIA DIVIDEND ADVANTAGE 3 (NZH)
AVERAGE DAILY NET ASSETS INSURED CALIFORNIA DIVIDEND ADVANTAGE (NKL)
(INCLUDING NET ASSETS ATTRIBUTABLE INSURED CALIFORNIA TAX-FREE ADVANTAGE (NKX)
TO PREFERRED SHARES) FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For net assets over $2 billion .3750
================================================================================
74
The annual complex-level fee, payable monthly, which is additive to the
fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the
aggregate amount of total fund assets managed as stated in the table below. As
of February 28, 2006, the complex-level fee rate was .1886%.
COMPLEX-LEVEL
COMPLEX-LEVEL ASSETS(1) FEE RATE
--------------------------------------------------------------------------------
For the first $55 billion .2000%
For the next $1 billion .1800
For the next $1 billion .1600
For the next $3 billion .1425
For the next $3 billion .1325
For the next $3 billion .1250
For the next $5 billion .1200
For the next $5 billion .1175
For the next $15 billion .1150
For Managed Assets over $91 billion (2) .1400
================================================================================
(1) The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate Managed Assets ("Managed Assets" means
the average daily net assets of each fund including assets attributable to
all types of leverage used by the Nuveen funds) of Nuveen-sponsored funds
in the U.S.
(2) With respect to the complex-wide Managed Assets over $91 billion, the fee
rate or rates that will apply to such assets will be determined at a later
date. In the unlikely event that complex-wide Managed Assets reach $91
billion prior to a determination of the complex-level fee rate or rates to
be applied to Managed Assets in excess of $91 billion, the complex-level
fee rate for such complex-wide Managed Assets shall be .1400% until such
time as a different rate or rates is determined.
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Directors/Trustees who are affiliated with
the Adviser or to their officers, all of whom receive remuneration for their
services to the Funds from the Adviser or its affiliates. The Board of
Directors/Trustees has adopted a deferred compensation plan for independent
Directors/Trustees that enables Directors/Trustees to elect to defer receipt of
all or a portion of the annual compensation they are entitled to receive from
certain Nuveen advised Funds. Under the plan, deferred amounts are treated as
though equal dollar amounts had been invested in shares of select Nuveen advised
Funds.
For the first ten years of California Dividend Advantage's (NAC) operations, the
Adviser has agreed to reimburse the Fund, as a percentage of average daily net
assets (including net assets attributable to Preferred shares), for fees and
expenses in the amounts and for the time periods set forth below:
YEAR ENDING YEAR ENDING
JULY 31, JULY 31,
--------------------------------------------------------------------------------
1999* .30% 2005 .25%
2000 .30 2006 .20
2001 .30 2007 .15
2002 .30 2008 .10
2003 .30 2009 .05
2004 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse California Dividend Advantage (NAC) for
any portion of its fees and expenses beyond July 31, 2009.
For the first ten years of California Dividend Advantage 2's (NVX) operations,
the Adviser has agreed to reimburse the Fund, as a percentage of average daily
net assets (including net assets attributable to Preferred shares), for fees and
expenses in the amounts and for the time periods set forth below:
YEAR ENDING YEAR ENDING
MARCH 31, MARCH 31,
--------------------------------------------------------------------------------
2001* .30% 2007 .25%
2002 .30 2008 .20
2003 .30 2009 .15
2004 .30 2010 .10
2005 .30 2011 .05
2006 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse California Dividend Advantage 2 (NVX)
for any portion of its fees and expenses beyond March 31, 2011.
75
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
For the first ten years of California Dividend Advantage 3's (NZH) operations,
the Adviser has agreed to reimburse the Fund, as a percentage of average daily
net assets (including net assets attributable to Preferred shares), for fees and
expenses in the amounts and for the time periods set forth below:
YEAR ENDING YEAR ENDING
SEPTEMBER 30, SEPTEMBER 30,
--------------------------------------------------------------------------------
2001* .30% 2007 .25%
2002 .30 2008 .20
2003 .30 2009 .15
2004 .30 2010 .10
2005 .30 2011 .05
2006 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse California Dividend Advantage 3 (NZH)
for any portion of its fees and expenses beyond September 30, 2011.
For the first ten years of Insured California Dividend Advantage's (NKL)
operations, the Adviser has agreed to reimburse the Fund, as a percentage of
average daily net assets (including net assets attributable to Preferred
shares), for fees and expenses in the amounts and for the time periods set forth
below:
YEAR ENDING YEAR ENDING
MARCH 31, MARCH 31,
--------------------------------------------------------------------------------
2002* .30% 2008 .25%
2003 .30 2009 .20
2004 .30 2010 .15
2005 .30 2011 .10
2006 .30 2012 .05
2007 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Insured California Dividend Advantage
(NKL) for any portion of its fees and expenses beyond March 31, 2012.
For the first eight years of Insured California Tax-Free Advantage's (NKX)
operations, the Adviser has agreed to reimburse the Fund, as a percentage of
average daily net assets (including net assets attributable to Preferred
shares), for fees and expenses in the amounts and for the time periods set forth
below:
YEAR ENDING YEAR ENDING
NOVEMBER 30, NOVEMBER 30,
--------------------------------------------------------------------------------
2002* .32% 2007 .32%
2003 .32 2008 .24
2004 .32 2009 .16
2005 .32 2010 .08
2006 .32
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Insured California Tax-Free Advantage
(NKX) for any portion of its fees and expenses beyond November 30, 2010.
76
6. SUBSEQUENT EVENT - DISTRIBUTIONS TO COMMON SHAREHOLDERS
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on April 3, 2006, to shareholders of record on
March 15, 2006, as follows:
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
PREMIUM PREMIUM PREMIUM DIVIDEND
INCOME INCOME 2 INCOME ADVANTAGE
(NPC) (NCL) (NCU) (NAC)
--------------------------------------------------------------------------------
Dividend per share $.0670 $.0625 $.0635 $.0745
================================================================================
INSURED INSURED
CALIFORNIA CALIFORNIA CALIFORNIA CALIFORNIA
DIVIDEND DIVIDEND DIVIDEND TAX-FREE
ADVANTAGE 2 ADVANTAGE 3 ADVANTAGE ADVANTAGE
(NVX) (NZH) (NKL) (NKX)
--------------------------------------------------------------------------------
Dividend per share $.0685 $.0680 $.0720 $.0630
================================================================================
77
Financial
HIGHLIGHTS (Unaudited)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
---------------------------------------------------------------- -------------------------------
Distributions Distributions
from Net from Net
Beginning Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
===============================================================================================================================
INSURED CALIFORNIA
PREMIUM INCOME (NPC)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2006(a) $16.21 $ .46 $(.30) $(.07) $(.02) $ .07 $(.43) $(.14) $ (.57)
2005 16.23 .95 .22 (.10) (.01) 1.06 (.92) (.16) (1.08)
2004 15.59 .99 .68 (.05) -- 1.62 (.93) (.05) (.98)
2003 16.17 .99 (.45) (.06) (.01) .47 (.97) (.08) (1.05)
2002 16.04 1.05 .03 (.09) -- .99 (.86) -- (.86)
2001 15.08 1.04 .99 (.21) -- 1.82 (.86) -- (.86)
INSURED CALIFORNIA
PREMIUM INCOME 2 (NCL)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2006(a) 15.33 .45 (.23) (.09) -- .13 (.40) -- (.40)
2005 15.12 .91 .29 (.11) -- 1.09 (.88) -- (.88)
2004 14.60 .96 .53 (.06) -- 1.43 (.91) -- (.91)
2003 15.08 .99 (.51) (.07) -- .41 (.89) -- (.89)
2002 15.01 1.02 (.02) (.10) -- .90 (.83) -- (.83)
2001 14.09 1.01 .91 (.22) -- 1.70 (.78) -- (.78)
CALIFORNIA PREMIUM
INCOME (NCU)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2006(a) 15.03 .45 (.25) (.09) -- .11 (.40) (.01) (.41)
2005 14.51 .90 .60 (.12) -- 1.38 (.86) -- (.86)
2004 13.66 .94 .85 (.06) -- 1.73 (.88) -- (.88)
2003 14.42 .96 (.78) (.07) -- .11 (.87) -- (.87)
2002 14.22 .99 .13 (.10) -- 1.02 (.82) -- (.82)
2001 13.34 1.00 .90 (.23) -- 1.67 (.79) -- (.79)
===============================================================================================================================
Total Returns
-------------------
Based
Offering on
Costs and Ending Common
Preferred Common Based Share
Share Share Ending on Net
Underwriting Net Asset Market Market Asset
Discounts Value Value Value** Value**
=======================================================================================
INSURED CALIFORNIA
PREMIUM INCOME (NPC)
---------------------------------------------------------------------------------------
Year Ended 8/31:
2006(a) $ -- $15.71 $16.04 4.69% .49%
2005 -- 16.21 15.90 7.58 6.74
2004 -- 16.23 15.81 11.80 10.64
2003 -- 15.59 15.07 1.55 2.82
2002 -- 16.17 15.85 6.73 6.47
2001 -- 16.04 15.69 14.12 12.43
INSURED CALIFORNIA
PREMIUM INCOME 2 (NCL)
---------------------------------------------------------------------------------------
Year Ended 8/31:
2006(a) -- 15.06 15.09 3.01 .87
2005 -- 15.33 15.05 5.10 7.42
2004 -- 15.12 15.18 12.71 10.02
2003 -- 14.60 14.32 2.69 2.71
2002 -- 15.08 14.80 5.57 6.29
2001 -- 15.01 14.83 11.99 12.45
CALIFORNIA PREMIUM
INCOME (NCU)
---------------------------------------------------------------------------------------
Year Ended 8/31:
2006(a) -- 14.73 14.15 1.43 .81
2005 -- 15.03 14.37 11.76 9.75
2004 -- 14.51 13.67 12.04 12.94
2003 -- 13.66 13.02 (.91) .69
2002 -- 14.42 14.00 4.84 7.48
2001 -- 14.22 14.17 12.84 12.92
=======================================================================================
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------
Before Credit/Reimbursement After Credit/Reimbursement***
----------------------------- ------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Ending Expenses Income to Expenses Income to
Net to Average Average to Average Average
Assets Net Assets Net Assets Net Assets Net Assets
Applicable Applicable Applicable Applicable Applicable Portfolio
to Common to Common to Common to Common to Common Turnover
Shares (000) Shares++ Shares++ Shares++ Shares++ Rate
==========================================================================================================================
INSURED CALIFORNIA
PREMIUM INCOME (NPC)
--------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2006(a) $101,333 1.16%* 5.88%* 1.14%* 5.90%* 3%
2005 104,510 1.14 5.85 1.13 5.86 9
2004 104,618 1.17 6.17 1.16 6.17 25
2003 100,427 1.17 6.13 1.16 6.14 26
2002 104,137 1.21 6.65 1.19 6.66 30
2001 103,068 1.22 6.77 1.21 6.79 21
INSURED CALIFORNIA
PREMIUM INCOME 2 (NCL)
--------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2006(a) 191,484 1.19* 6.05* 1.19* 6.05* 4
2005 194,895 1.17 6.03 1.17 6.03 7
2004 192,035 1.19 6.38 1.19 6.38 35
2003 185,181 1.20 6.53 1.19 6.54 22
2002 190,870 1.23 6.83 1.22 6.84 6
2001 189,633 1.24 7.01 1.24 7.02 18
CALIFORNIA PREMIUM
INCOME (NCU)
--------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2006(a) 85,027 1.22* 6.11* 1.21* 6.13* 4
2005 86,785 1.21 6.08 1.20 6.09 13
2004 83,772 1.23 6.62 1.22 6.63 19
2003 78,859 1.24 6.72 1.24 6.72 24
2002 83,249 1.27 7.07 1.26 7.08 10
2001 82,067 1.32 7.36 1.30 7.38 18
==========================================================================================================================
Preferred Shares at End of Period
-----------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
=====================================================================
INSURED CALIFORNIA
PREMIUM INCOME (NPC)
---------------------------------------------------------------------
Year Ended 8/31:
2006(a) $45,000 $25,000 $81,296
2005 45,000 25,000 83,061
2004 45,000 25,000 83,121
2003 45,000 25,000 80,793
2002 45,000 25,000 82,854
2001 45,000 25,000 82,260
INSURED CALIFORNIA
PREMIUM INCOME 2 (NCL)
---------------------------------------------------------------------
Year Ended 8/31:
2006(a) 95,000 25,000 75,391
2005 95,000 25,000 76,288
2004 95,000 25,000 75,535
2003 95,000 25,000 73,732
2002 95,000 25,000 75,229
2001 95,000 25,000 74,903
CALIFORNIA PREMIUM
INCOME (NCU)
---------------------------------------------------------------------
Year Ended 8/31:
2006(a) 43,000 25,000 74,434
2005 43,000 25,000 75,456
2004 43,000 25,000 73,704
2003 43,000 25,000 70,848
2002 43,000 25,000 73,400
2001 43,000 25,000 72,714
=====================================================================
* Annualized.
** Total Investment Return on Market Value is the combination of changes in
the market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. Total Return on Common Share Net
Asset Value is the combination of changes in Common Share net asset value,
reinvested dividend income at net asset value and reinvested capital gains
distributions at net asset value, if any. Total returns are not annualized.
*** After custodian fee credit and expense reimbursement, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) For the six months ended February 28, 2006.
See accompanying notes to financial statements.
78-79 SPREAD
Financial HIGHLIGHTS (Unaudited) (continued)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
---------------------------------------------------------------- ------------------------------
Distributions Distributions
from Net from Net
Beginning Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
===============================================================================================================================
CALIFORNIA DIVIDEND
ADVANTAGE (NAC)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2006(e) $15.98 $ .51 $(.20) $(.09) $ -- $ .22 $(.47) $(.03) $ (.50)
2005 15.59 1.04 .50 (.12) -- 1.42 (.98) (.05) (1.03)
2004 14.82 1.05 .76 (.06) -- 1.75 (.98) -- (.98)
2003 15.24 1.06 (.47) (.07) -- .52 (.94) -- (.94)
2002 15.13 1.07 -- (.10) -- .97 (.86) -- (.86)
2001 13.82 1.07 1.28 (.23) -- 2.12 (.81) -- (.81)
CALIFORNIA DIVIDEND
ADVANTAGE 2 (NVX)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2006(e) 15.63 .49 (.18) (.09) -- .22 (.44) -- (.44)
2005 14.97 .98 .71 (.12) -- 1.57 (.91) -- (.91)
2004 14.18 .99 .77 (.06) -- 1.70 (.91) -- (.91)
2003 14.79 1.00 (.62) (.07) -- .31 (.89) (.03) (.92)
2002 15.11 1.06 (.40) (.11) -- .55 (.87) -- (.87)
2001(a) 14.33 .34 .90 (.05) -- 1.19 (.29) -- (.29)
CALIFORNIA DIVIDEND
ADVANTAGE 3 (NZH)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2006(e) 15.31 .49 (.16) (.10) -- .23 (.43) -- (.43)
2005 14.65 .97 .68 (.13) -- 1.52 (.86) -- (.86)
2004 13.72 .98 .88 (.07) -- 1.79 (.86) -- (.86)
2003 14.33 .98 (.66) (.08) -- .24 (.86) -- (.86)
2002(b) 14.33 .83 .09 (.08) -- .84 (.72) -- (.72)
INSURED CALIFORNIA
DIVIDEND ADVANTAGE (NKL)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2006(e) 15.81 .50 (.18) (.10) -- .22 (.43) -- (.43)
2005 15.35 1.01 .52 (.12) -- 1.41 (.90) (.05) (.95)
2004 14.60 1.02 .84 (.06) (.01) 1.79 (.91) (.13) (1.04)
2003 15.14 .99 (.49) (.07) (.01) .42 (.91) (.05) (.96)
2002(c) 14.33 .34 .92 (.03) -- 1.23 (.30) -- (.30)
INSURED CALIFORNIA
TAX-FREE ADVANTAGE (NKX)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2006(e) 15.17 .48 (.17) (.09) -- .22 (.38) -- (.38)
2005 14.62 .96 .57 (.13) -- 1.40 (.85) -- (.85)
2004 13.79 .96 .84 (.06) -- 1.74 (.91) -- (.91)
2003(d) 14.33 .64 (.33) (.04) -- .27 (.60) -- (.60)
===============================================================================================================================
Total Returns
-------------------
Based
Offering on
Costs and Ending Common
Preferred Common Based Share
Share Share Ending on Net
Underwriting Net Asset Market Market Asset
Discounts Value Value Value** Value**
===========================================================================================
CALIFORNIA DIVIDEND
ADVANTAGE (NAC)
-------------------------------------------------------------------------------------------
Year Ended 8/31:
2006(e) $ -- $15.70 $16.01 2.85% 1.46%
2005 -- 15.98 16.07 14.62 9.41
2004 -- 15.59 15.00 12.07 12.11
2003 -- 14.82 14.30 4.79 3.37
2002 -- 15.24 14.55 3.67 6.75
2001 -- 15.13 14.89 15.06 15.85
CALIFORNIA DIVIDEND
ADVANTAGE 2 (NVX)
-------------------------------------------------------------------------------------------
Year Ended 8/31:
2006(e) -- 15.41 14.92 1.17 1.43
2005 -- 15.63 15.19 14.98 10.80
2004 -- 14.97 14.08 13.60 12.11
2003 -- 14.18 13.24 (.95) 2.16
2002 -- 14.79 14.28 (.27) 3.90
2001(a) (.12) 15.11 15.21 3.40 7.55
CALIFORNIA DIVIDEND
ADVANTAGE 3 (NZH)
-------------------------------------------------------------------------------------------
Year Ended 8/31:
2006(e) -- 15.11 14.64 4.14 1.58
2005 -- 15.31 14.49 15.75 10.69
2004 -- 14.65 13.33 11.97 13.36
2003 .01 13.72 12.71 (3.20) 1.68
2002(b) (.12) 14.33 14.00 (1.68) 5.32
INSURED CALIFORNIA
DIVIDEND ADVANTAGE (NKL)
-------------------------------------------------------------------------------------------
Year Ended 8/31:
2006(e) -- 15.60 15.25 4.65 1.46
2005 -- 15.81 15.00 9.00 9.46
2004 -- 15.35 14.67 12.54 12.53
2003 -- 14.60 14.00 (.35) 2.70
2002(c) (.12) 15.14 15.00 2.05 7.84
INSURED CALIFORNIA
TAX-FREE ADVANTAGE (NKX)
-------------------------------------------------------------------------------------------
Year Ended 8/31:
2006(e) -- 15.01 14.46 3.29 1.49
2005 -- 15.17 14.38 7.46 9.84
2004 -- 14.62 14.19 11.54 12.86
2003(d) (.21) 13.79 13.56 (5.79) .34
===========================================================================================
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------
Before Credit/Reimbursement After Credit/Reimbursement***
----------------------------- ------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Ending Expenses Income to Expenses Income to
Net to Average Average to Average Average
Assets Net Assets Net Assets Net Assets Net Assets
Applicable Applicable Applicable Applicable Applicable Portfolio
to Common to Common to Common to Common to Common Turnover
Shares (000) Shares++ Shares++ Shares++ Shares++ Rate
===============================================================================================================================
CALIFORNIA DIVIDEND
ADVANTAGE (NAC)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2006(e) $367,832 1.13%* 6.24%* .83%* 6.54%* 3
2005 374,265 1.12 6.22 .75 6.59 4
2004 365,066 1.14 6.38 .70 6.83 12
2003 346,918 1.15 6.44 .70 6.88 11
2002 356,821 1.18 6.76 .72 7.22 33
2001 354,197 1.19 7.03 .72 7.50 17
CALIFORNIA DIVIDEND
ADVANTAGE 2 (NVX)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2006(e) 227,948 1.15* 5.96* .70* 6.41* 1
2005 231,140 1.16 5.94 .70 6.40 3
2004 221,395 1.18 6.24 .72 6.70 13
2003 209,722 1.18 6.30 .73 6.75 40
2002 218,814 1.19 6.82 .73 7.28 32
2001(a) 223,440 1.05* 5.23* .62* 5.65* 40
CALIFORNIA DIVIDEND
ADVANTAGE 3 (NZH)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2006(e) 364,328 1.16* 6.10* .70* 6.56* 3
2005 369,262 1.17 6.05 .70 6.51 5
2004 353,360 1.20 6.32 .73 6.78 13
2003 330,829 1.20 6.33 .73 6.79 48
2002(b) 345,470 1.15* 6.01* .69* 6.47* 49
INSURED CALIFORNIA
DIVIDEND ADVANTAGE (NKL)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2006(e) 238,048 1.16* 6.12* .71* 6.57* --
2005 241,254 1.16 6.06 .71 6.51 4
2004 234,186 1.18 6.28 .72 6.74 14
2003 222,751 1.18 6.00 .72 6.46 71
2002(c) 231,062 1.10* 4.98* .60* 5.47* 12
INSURED CALIFORNIA
TAX-FREE ADVANTAGE (NKX)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 8/31:
2006(e) 88,293 1.22* 5.97* .73* 6.47* --
2005 89,272 1.21 5.95 .73 6.43 3
2004 86,008 1.23 6.17 .73 6.67 20
2003(d) 81,141 1.14* 5.25* .67* 5.72* 45
===============================================================================================================================
Preferred Shares at End of Period
-----------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
=====================================================================
CALIFORNIA DIVIDEND
ADVANTAGE (NAC)
---------------------------------------------------------------------
Year Ended 8/31:
2006(e) $175,000 $25,000 $77,547
2005 175,000 25,000 78,466
2004 175,000 25,000 77,152
2003 175,000 25,000 74,560
2002 175,000 25,000 75,974
2001 175,000 25,000 75,600
CALIFORNIA DIVIDEND
ADVANTAGE 2 (NVX)
---------------------------------------------------------------------
Year Ended 8/31:
2006(e) 110,000 25,000 76,806
2005 110,000 25,000 77,532
2004 110,000 25,000 75,317
2003 110,000 25,000 72,664
2002 110,000 25,000 74,731
2001(a) 110,000 25,000 75,782
CALIFORNIA DIVIDEND
ADVANTAGE 3 (NZH)
---------------------------------------------------------------------
Year Ended 8/31:
2006(e) 187,000 25,000 73,707
2005 187,000 25,000 74,367
2004 187,000 25,000 72,241
2003 187,000 25,000 69,229
2002(b) 187,000 25,000 71,186
INSURED CALIFORNIA
DIVIDEND ADVANTAGE (NKL)
---------------------------------------------------------------------
Year Ended 8/31:
2006(e) 118,000 25,000 75,434
2005 118,000 25,000 76,113
2004 118,000 25,000 74,616
2003 118,000 25,000 72,193
2002(c) 118,000 25,000 73,954
INSURED CALIFORNIA
TAX-FREE ADVANTAGE (NKX)
---------------------------------------------------------------------
Year Ended 8/31:
2006(e) 4 5,000 25,000 74,052
2005 45,000 25,000 74,595
2004 45,000 25,000 72,782
2003(d) 45,000 25,000 70,078
=====================================================================
* Annualized.
** Total Investment Return on Market Value is the combination of changes in
the market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. Total Return on Common Share Net
Asset Value is the combination of changes in Common Share net asset value,
reinvested dividend income at net asset value and reinvested capital gains
distributions at net asset value, if any. Total returns are not annualized.
*** After custodian fee credit and expense reimbursement, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) For the period March 27, 2001 (commencement of operations) through August
31, 2001.
(b) For the period September 25, 2001 (commencement of operations) through
August 31, 2002.
(c) For the period March 25, 2002 (commencement of operations) through August
31, 2002.
(d) For the period November 21, 2002 (commencement of operations) through
August 31, 2003.
(e) For the six months ended February 28, 2006.
See accompanying notes to financial statements.
80-81 SPREAD
Reinvest Automatically
EASILY AND CONVENIENTLY
Sidebar text: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET
UP YOUR REINVESTMENT ACCOUNT.
NUVEEN EXCHANGE-TRADED CLOSED-END FUNDS
DIVIDEND REINVESTMENT PLAN
Your Nuveen Exchange-Traded Closed-End Fund allows you to conveniently reinvest
dividends and/or capital gains distributions in additional fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
then-current market price. If the shares are trading at less than net asset
value, shares for your account will be purchased on the open market. Dividends
and distributions received to purchase shares in the open market will normally
be invested shortly after the dividend payment date. No interest will be paid on
dividends and distributions awaiting reinvestment. Because the market price of
the shares may increase before purchases are completed, the average purchase
price per share may exceed the market price at the time of valuation, resulting
in the acquisition of fewer shares than if the dividend or distribution had been
paid in shares issued by the Fund. A pro rata portion of any applicable
brokerage commissions on open market purchases will be paid by Plan
participants. These commissions usually will be lower than those charged on
individual transactions.
FLEXIBLE
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
82
Other Useful
INFORMATION
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
Each Fund's (i) quarterly portfolio of investments, (ii) information regarding
how the Funds voted proxies relating to portfolio securities held during the
12-month period ended June 30, 2005, and (iii) a description of the policies and
procedures that the Funds used to determine how to vote proxies relating to
portfolio securities are available without charge, upon request, by calling
Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website at
www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities
and Exchange Commission ("SEC"). The SEC may charge a copying fee for this
information. Visit the SEC on-line at http://www.sec.gov or in person at the
SEC's Public Reference Room in Washington, D.C. Call the SEC at 1-202-942-8090
for room hours and operation. You may also request Fund information by sending
an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public
References Section at 450 Fifth Street NW, Washington, D.C. 20549.
GLOSSARY OF TERMS USED IN THIS REPORT
AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time period. It
expresses the return that would have been necessary each year to equal the
investment's actual cumulative performance (including change in NAV or market
price and reinvested dividends and capital gains distributions, if any) over the
time period being considered.
AVERAGE EFFECTIVE MATURITY: The average of all the maturities of the bonds in a
Fund's portfolio, computed by weighting each maturity date (the date the
security comes due) by the market value of the security. This figure does not
account for the likelihood of prepayments or the exercise of call provisions.
LEVERAGE-ADJUSTED DURATION: Duration is a measure of the expected period over
which a bond's principal and interest will be paid, and consequently is a
measure of the sensitivity of a bond's or bond Fund's value to changes when
market interest rates change. Generally, the longer a bond's or Fund's duration,
the more the price of the bond or Fund will change as interest rates change.
Leverage-adjusted duration takes into account the leveraging process for a Fund
and therefore is longer than the duration of the Fund's portfolio of bonds.
MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An investment's
current annualized dividend divided by its current market price.
NET ASSET VALUE (NAV): A Fund's common share NAV per share is calculated by
subtracting the liabilities of the Fund (including any MuniPreferred shares
issued in order to leverage the Fund) from its total assets and then dividing
the remainder by the number of shares outstanding. Fund NAVs are calculated at
the end of each business day.
TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable investment to
equal, on an after-tax basis, the yield of a municipal bond investment.
BOARD OF DIRECTORS/TRUSTEES
Robert P. Bremner
Lawrence H. Brown
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Eugene S. Sunshine
FUND MANAGER
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust Company
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust Company
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
Chicago, IL
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the period covered by this report. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
83
Nuveen Investments:
SERVING Investors
For GENERATIONS
Photo of: 2 women looking at a photo album.
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
WE OFFER MANY DIFFERENT INVESTING SOLUTIONS FOR OUR CLIENTS' DIFFERENT NEEDS.
Managing more than $135 billion in assets, Nuveen Investments offers access to a
number of different asset classes and investing solutions through a variety of
products. Nuveen Investments markets its capabilities under four distinct
brands: Nuveen, a leader in fixed-income investments; NWQ, a leader in
value-style equities; Rittenhouse, a leader in growth-style equities; and
Symphony, a leading institutional manager of market-neutral alternative
investment portfolios.
FIND OUT HOW WE CAN HELP YOU REACH YOUR FINANCIAL GOALS.
To learn more about the products and services Nuveen Investments offers, talk to
your financial advisor, or call us at (800) 257-8787. Please read the
information provided carefully before you invest.
Be sure to obtain a prospectus, where applicable. Investors should consider the
investment objective and policies, risk considerations, charges and expenses of
the Fund carefully before investing. The prospectus contains this and other
information relevant to an investment in the Fund. For a prospectus, please
contact your securities representative or Nuveen Investments, 333 W. Wacker Dr.,
Chicago, IL 60606. Please read the prospectus carefully before you invest or
send money.
o Share prices
o Fund details
Learn more o Daily financial news
about Nuveen Funds at o Investor education
WWW.NUVEEN.COM/ETF o Interactive planning tools
Logo: NUVEEN Investments
ESA-B-0206D
ITEM 2. CODE OF ETHICS.
Not applicable to this filing.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable to this filing.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable to this filing.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to this filing.
ITEM 6. SCHEDULE OF INVESTMENTS.
See Portfolio of Investments in Item 1.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
During this reporting period, the registrant's Board of Trustees implemented a
change to the procedures by which shareholders may recommend nominees to the
registrant's board of trustees by amending the registrant's by-laws to include a
provision specifying the date by which shareholder nominations for election as
trustee at a subsequent meeting must be submitted to the registrant.
Shareholders must deliver or mail notice to the registrant not less than
forty-five days nor more than sixty days prior to the first anniversary date of
the date on which the registrant first mailed its proxy materials for the prior
year's annual meeting; provided, however, if an only if the annual meeting is
not scheduled to be held within a period that commences thirty days before the
first anniversary date of the annual meeting for the preceding year and ends
thirty days after such anniversary date (an annual meeting date outside such
period being referred to as an "Other Annual Meeting Date" hereafter), the
shareholder notice must be given no later than the close of business on the date
forty-five days prior to such Other Annual Meeting Date or the tenth business
day following the date such Other Annual Meeting Date is first publicly
announced or disclosed. The shareholder's notice must be in writing and set
forth the name, age, date of birth, business address, residence address and
nationality of the person(s) being nominated and the class or series, number of
all shares of the registrant owned of record or beneficially be each such
person(s), any other information regarding such person required by Item 401 of
Regulation S-K or Item 22 of Rule 14a-101 (Schedule 14A) under the Securities
Exchange Act of 1934, as amended, any other information regarding the person(s)
to be nominated that would be required to be disclosed in a proxy statement or
other filings required to be made in connection with solicitation of proxies for
election of trustees, and whether such shareholder believes any nominee is or
will be an "interested person" (as that term is defined in the Investment
Company Act of 1940, as amended) of the registrant or sufficient information to
enable the registrant to make that determination and the written and signed
consent of the person(s) to be nominated.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")(17 CFR
240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter
of the period covered by this report that has materially affected, or
is reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable to
this filing.
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT
attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons: Not applicable.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR
270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference. Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen California Dividend Advantage Municipal Fund
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By (Signature and Title)* /s/ Jessica R. Droeger
----------------------------------------------
Jessica R. Droeger
Vice President and Secretary
Date: May 5, 2006
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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
----------------------------------------------
Gifford R. Zimmerman
Chief Administrative Officer
(principal executive officer)
Date: May 5, 2006
-------------------------------------------------------------------
By (Signature and Title)* /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: May 5, 2006
-------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.